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Switzerland to share tax information with India:Swiss official

Posted by Admin on January 29, 2011

Assorted international currency notes.

Ka Ching Bling

http://in.news.yahoo.com/switzerland-share-tax-information-india-swiss-official-20110128-220000-062.html

PTI – Sat, Jan 29 11:30 AM IST

Davos, Jan 29 (PTI) Dismissing the perception that Switzerland is a tax haven, a senior Swiss government official today expressed hope that the revised tax avoidance treaty with India will be ratified during the year, following which Swiss authorities would provide administrative assistance to India to deal with cases of tax evasion.

“We have recently signed an agreement with India, which is now in the Parliament in order to get rectified.

And then, we will concretely take steps against tax evasion and as soon as this agreement is enforced… both sides can also grant administrative assistance (to deal with ) tax evasion,” Switzerland Federal Department of Finance State Secretary Miachael Ambuhl said in an interview to private news channel NDTV.

India and Switzerland in August last year signed a revised Double Tax avoidance Agreement (DTAA) that will enable exchange of information on tax evaders, considered a must for getting details on unaccounted funds stashed away by Indians in Swiss banks. The agreement, however, is yet to be ratified by the Switzerland Parliament.

“This perception is wrong. Switzerland is not a tax haven…Switzerland has not given tax refuge to people who want to hide their money,” Ambuhl said, adding the agreement hopefully will be ratified this year.

“We want to have confidentiality for the bank clients but we don”t want to protect them from paying taxes. There is no such thing that in Switzerland you can avoid paying your taxes,” he added.

He further said that if India authorities would get the information, provided they are able to produce evidence of tax evasion.

“If Indian authorities can show that there is evidence that people have evaded there money, then the answer is ”yes”. If Indian authorities can give evidence that for the person X or Y, there is evidence that they have evaded their taxes in Switzerland, we will grant administrative assistance”, he added.

On whether the treaty would bring about substantial change, Ambuhl said, “It will not change everything. We have already got a good legal basis to grant judicial and administrative assistance, but as soon as this commences in force, then it will become even better.” PTI PC CS RAH

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Of luxury cars and lowly tractors

Posted by Admin on December 31, 2010

http://www.thehindu.com/opinion/columns/sainath/article995828.ece

P. SAINATH

Even as the media celebrate the Mercedes Benz deal in the Marathwada region as a sign of “rural resurgence,” the latest data show that 17,368 farmers killed themselves in the year of the “resurgence.”

Even as the media celebrate the Mercedes Benz deal in the Marathwada region as a sign of “rural resurgence,” the latest data show that 17,368 farmers killed themselves in the year of the “resurgence.”

 

When businessmen from Aurangabad in the backward Marathwada region bought 150 Mercedes Benz luxury cars worth Rs. 65 crore at one go in October, it grabbed media attention. The top public sector bank, State Bank of India, offered the buyers loans of over Rs. 40 crore. “This,” says Devidas Tulzapurkar, president of the Aurangabad district bank employees association, “at an interest rate of 7 per cent.” A top SBI official said the bank was “proud to be part of this deal,” and would “continue to scout for similar deals in the future.”

The value of the Mercedes deal equals the annual income of tens of thousands of rural Marathwada households. And countless farmers in Maharashtra struggle to get any loans from formal sources of credit. It took roughly a decade and tens of thousands of suicides before Indian farmers got loans at 7 per cent interest — many, in theory only. Prior to 2005, those who got any bank loans at all shelled out between 9 and 12 per cent. Several were forced to take non-agricultural loans at even higher rates of interest. Buy a Mercedes, pay 7 per cent interest. Buy a tractor, pay 12 per cent. The hallowed micro-finance institutions (MFIs) do worse. There, it’s smaller sums at interest rates of between 24 and 36 per cent or higher.

Starved of credit, peasants turned to moneylenders and other informal sources. Within 10 years from 1991, the number of Indian farm households in debt almost doubled from 26 per cent to 48.6 per cent. A crazy underestimate but an official number. Many policy-driven disasters hit farmers at the same time. Exploding input costs in the name of ‘market-based prices.’ Crashing prices for their commercial crops, often rigged by powerful traders and corporations. Slashing of investment in agriculture. A credit squeeze as banks moved away from farm loans to fuelling upper middle class lifestyles. Within the many factors driving over two lakh farmers to suicide in 13 years, indebtedness and the credit squeeze rank high. (And MFIs are now among the squeezers).

What remained of farm credit was hijacked. A devastating piece in The Hindu(Aug. 13) showed us how. Almost half the total “agricultural credit” in the State of Maharashtra in 2008 was disbursed not by rural banks but by urban and metro branches. Over 42 per cent of it in just Mumbai — stomping ground of large corporations rather than of small farmers.

Even as the media celebrate our greatest car deal ever as a sign of “rural resurgence,” the subject of many media stories, comes the latest data of the National Crime Records Bureau. These show a sharp increase in farm suicides in 2009 with at least 17,368 farmers killing themselves in the year of “rural resurgence.” That’s over 7 per cent higher than in 2008 and the worst numbers since 2004. This brings the total farm suicides since 1997 to 216,500. While all suicides have multiple causes, their strong concentration within regions and among cash crop farmers is an alarming and dismal trend.

The NCRB, a wing of the Union Home Ministry, has been tracking farm suicide data since 1995. However, researchers mostly use their data from 1997 onwards. This is because the 1995 and 1996 data are incomplete. The system was new in 1995 and some big States such as Tamil Nadu and Rajasthan sent in no numbers at all that year. (In 2009, the two together saw over 1,900 farm suicides). By 1997, all States were reporting and the data are more complete.

The NCRB data end at 2009 for now. But we can assume that 2010 has seen at least 16,000 farmers’ suicides. (After all, the yearly average for the last six years is 17,104). Add this 16,000 to the total 2,16,500. Also add the incomplete 1995 and 1996 numbers — that is 24,449 suicides. This brings the 1995-2010 total to 2,56,949. Reflect on this figure a moment.

It means over a quarter of a million Indian farmers have committed suicide since 1995. It means the largest wave of recorded suicides in human history has occurred in this country in the past 16 years. It means one-and-a-half million human beings, family members of those killing themselves, have been tormented by the tragedy. While millions more face the very problems that drove so many to suicide. It means farmers in thousands of villages have seen their neighbours take this incredibly sad way out. A way out that more and more will consider as despair grows and policies don’t change. It means the heartlessness of the Indian elite is impossible to imagine, leave alone measure.

Note that these numbers are gross underestimates to begin with. Several large groups of farmers are mostly excluded from local counts. Women, for instance. Social and other prejudice means that, most times, a woman farmer killing herself is counted as suicide — not as a farmer’s suicide. Because the land is rarely in a woman’s name.

Then there is the plain fraud that some governments resort to. Maharashtra being the classic example. The government here has lied so many times that it contradicts itself thrice within a week. In May this year, for instance, three ‘official’ estimates of farm suicides in the worst-hit Vidarbha region varied by 5,500 per cent. The lowest count being just six in four months (See “How to be an eligible suicide,” The Hindu, May 13, 2010).

The NCRB figure for Maharashtra as a whole in 2009 is 2,872 farmers’ suicides. So it remains the worst State for farm suicides for the tenth year running. The ‘decline’ of 930 that this figure represents would be joyous if true. But no State has worked harder to falsify reality. For 13 years, the State has seen a nearly unrelenting rise. Suddenly, there’s a drop of 436 and 930 in 2008 and 2009. How? For almost four years now, committees have functioned in Vidarbha’s crisis districts to dismiss most suicides as ‘non-genuine.’ What is truly frightening is the Maharashtra government’s notion that fixing the numbers fixes the problem.

Yet that problem is mounting. Perhaps the State most comparable to Maharashtra in terms of population is West Bengal. Though its population is less by a few million, it has more farmers. Both States have data for 15 years since 1995. Their farm suicide annual averages in three-five year periods starting then are revealing. Maharashtra’s annual average goes up in each period. From 1,963 in the five years ending with 1999 to 3,647 by 2004. And scaling 3,858 by 2009. West Bengal’s yearly average registers a gradual drop in each five-year period. From 1,454 in 1999 to 1,200 in 2004 to 1,014 by 2009. While it has more farmers, its farm suicide average for the past five years is less than a third of Maharashtra’s. The latter’s yearly average has almost doubled since 1999.

The share of the Big 5 ‘suicide belt’ States — Maharashtra, Andhra Pradesh, Karnataka, Madhya Pradesh and Chhattisgarh — remains close to two-thirds of all farm suicides. Sadly 18 of 28 States reported higher farm suicide numbers in 2009. In some the rise was negligible. In others, not. Tamil Nadu showed the biggest increase of all States, going from 512 in 2008 to 1060 in 2009. Karnataka clocked in second with a rise of 545. And Andhra Pradesh saw the third biggest rise — 309 more than in 2008. A few though did see a decline of some consequence in their farm suicide annual average figures for the last six years. Three — Karnataka, Kerala and West Bengal — saw their yearly average fall by over 350 in 2004-09 compared to the earlier seven years.

Things will get worse if existing policies on agriculture don’t change. Even States that have managed some decline across 13 years will be battered. Kerala, for instance, saw an annual average of 1,371 farm suicides between 1997 and 2003. From 2004-09, its annual average was 1016 — a drop of 355. Yet Kerala will suffer greatly in the near future. Its economy is the most globalised of any State. Most crops are cash crops. Any volatility in the global prices of coffee, pepper, tea, vanilla, cardamom or rubber will affect the State. Those prices are also hugely controlled at the global level by a few corporations.

Already bludgeoned by the South Asian Free Trade Agreement (SAFTA), Kerala now has to contend with the one we’ve gotten into with ASEAN. And an FTA with the European Union is also in the offing. Kerala will pay the price. Even prior to 2004, the dumping of the so-called “Sri Lankan pepper” (mostly pepper from other countries brought in through Sri Lanka) ravaged the State. Now, we’ve created institutional frameworks for such dumping. Economist Professor K. Nagaraj, author of the biggest study of farm suicides in India, says: “The latest data show us that the agrarian crisis has not relented, not gone away.” The policies driving it have also not gone away.

 

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The Road to World War III – The Global Banking Cartel Has One Card Left to Play

Posted by Admin on October 4, 2010

Posted in Economic Upheavals, Geo-Politics | Tagged: , , , , , , , , , , , | Leave a Comment »

Ron Paul: Inside Sources Told Me Fed Is Panicking At Mass Awakening

Posted by Admin on May 28, 2010

Congressman: “We are still fighting,” to add stronger provisions to watered down legislation

Ron Paul: Inside Sources Told Me Fed Is Panicking At Mass Awakening 270510top

Paul Joseph Watson
Prison Planet.com
Thursday, May 27, 2010

Appearing on The Alex Jones Show yesterday, Congressman Ron Paul revealed that through his inside sources he had learned that the people who control the Federal Reserve are panicking about the fact that Americans are waking up to the fact that the U.S. is controlled by the central bank.

“I had some information passed on to me, sort of inside information, somebody who knew somebody who was well tuned to the people at the Federal Reserve – and they said they are really really concerned about our movement to expose the Fed for what they’re doing,” said Paul, adding, “What they’re upset or worried about is the fact that more and more people are aware of the Federal Reserve now like never before,” explaining that exposure will lead to change and a reform of the Federal Reserve.

Paul attributed the success of the freedom movement in the last decade to the growing awareness of the power that the Federal Reserve wields over America.

“Even those who defend the Fed are very frightened about it,” added Paul, noting that a growing number of Americans were knowledgeable about the central bank despite the fact that the subject is rarely covered by the education system.

Host Jones made reference to a recent Council on Foreign Relations speech by Trilateral Commission and regular Bilderberg attendee Zbigniew Brzezinski in which he warned that a “global political awakening,” in combination with infighting amongst the elite, was threatening to derail the move towards a one world government.

“I hope he has some real reasons to be worried about that,” responded the Congressman.

Despite the Senate voting down Ron Paul’s version of the audit the fed bill earlier this month, a weaker version was passed which will mandate the central bank to reveal which financial institutions received bailout money at the peak of the economic crisis, something the Fed has desperately tried to avoid divulging.

Paul expressed his own disappointment at the watered down bill, but his colleagueCongressman Alan Grayson expressed confidence that the stronger provisions of the original House amendment could be added in Committee, ensuring the Federal Reserve doesn’t get off the hook, as Congressman Paul has warned.

Paul told host Jones that people should look into which Senators did not vote for the original audit the Fed bill, characterizing the weakened version as “A bailout for the system and for the Federal Reserve.”

Paul said he was going to try and influence the bill in conference by adding stronger provisions.

“I think right now the cards are stacked against us but we’re going to keep fighting because the more attention we get and the more people know, I ink we can be proud of how far we’ve gotten already,” said Paul.

From http://www.prisonplanet.com/ron-paul-inside-sources-told-me-fed-is-panicking-at-mass-awakening.html

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Goldman Suchs, truly…

Posted by Admin on April 23, 2010

Goldman Sucks

Goldman Sucks

Something truly extraordinary has happened. The Securities and Exchange Commission (SEC) has charged Goldman Sachs, the greedy, grasping, Midas heart of the Old World Order, with fraud, prompting an immediate slump of over 12% in their share price.

For once, the victims of the evil empire of Goldman Sachs were not the ordinary people, but their own big clients, including the German bank IKB.

This is a momentous hour. Like rats in a sack, the Old World Order have viciously turned on each other. Their united front is disintegrating.

How did it come about? What did Goldman Sachs do that was so outrageous that the SEC could no longer turn a blind eye to the myriad of transactions performed by Goldman Sachs that should have attracted the most serious scrutiny long ago?

What happened was that the hedge fund Paulson & Co, one of the most spectacular beneficiaries of the Credit Crunch, earning billions of dollars while so many other were losing billions, put together a complex portfolio of subprime-mortgage-backed investments that it fully expected to slump in value i.e. it was actually assembling a collection of what it thought were the highest risk, most dubious investments available, and anticipating maximum downside on this portfolio. Its explicit strategy was to bet heavily against this portfolio i.e. to “short” it to the fullest extent. In other words, Paulson & Co regarded this portfolio as utterly toxic, a disaster in the making. This portfolio was “dead man walking” if ever there was one.

Paulson & Co arranged for Goldman Sachs to structure, market and sell this portfolio to its prestigious clients. Goldman Sachs gave it the full, glossy treatment, indicating to many clients that they would be sitting on a potential goldmine if they invested in this portfolio. They completely omitted to mention to all would-be clients that Paulson & Co regarded this portfolio as a collection of the walking dead – a zombie fund heading for the graveyard. Isn’t this a critical piece of information about which every potential client ought to have been made aware? It’s a bit like selling a house for full market value when you know it’s sitting on the edge of a crumbling cliff, a fact that you deliberately fail to tell the purchaser.

In fact, they didn’t mention Paulson & Co at all. They claimed instead that ACA Management, an objective, independent third party with expertise in analyzing risk, had assembled the portfolio. They must have known that if they had admitted the involvement of Paulson & Co, investors might have viewed it entirely differently, given the reputation of hedge funds.

The Goldman Sachs “vice president” at the heart of the scandal is a Frenchman called Fabrice Tourre. In an email sent to a friend a month before he helped to structure the toxic portfolio, Tourre said, “More and more leverage in the system. The whole building is about to collapse anytime now … Only potential survivor, the fabulous Fabrice Tourre … standing in the middle of all these complex, highly leveraged, exotic trades he created without necessarily understanding all of the implication of those monstrosities!!!”

Tourre was described as a “well-mannered, handsome guy from a very refined family.” He had a reputation for throwing noisy parties in his fashionable block of flats. He was a ‘straight-A’ student at the Lycee Henri IV, one of France’s most elite schools, housed in an exquisite 6th Century abbey in Paris. He then studied mathematics at the Ecole Centrale Paris, a top French university, before completing his elite education with the obligatory trip to the USA where he obtained a master’s degree from Stanford. He worked in a luxurious office in a prime location in London.

Read the rest of this entry »

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Why the Central Bankers Are Meeting In Secret

Posted by Admin on February 14, 2010

Why the Central Bankers Are Meeting In Secret

Many of the world’s central bankers are meeting in Sydney today, at a secret location, to coordinate their drive to force draconian austerity measures on nations, in order to prop up their failed monetary system.

That’s why they are meeting in secret—if the people understood that the central bankers are working out how many people they’ll need to kill to save the banking system, the people might object to them being here.

Consider the chronology of how the world got to this point:

  • In July 2007, after a decade of warnings by American physical economist Lyndon LaRouche that the world financial system would disintegrate, the U.S. sub-prime crisis triggered the global financial collapse (Bear Sterns), which by September 2008 turned into a full-blown meltdown of the $1.4 quadrillion global derivatives bubble (Lehman Brothers, AIG).
  • In August 2007, LaRouche proposed the Homeowners and Bank Protection Act: to keep people in their homes; to preserve the functionality of the banking system by putting it into bankruptcy protection, to write off their unpayable derivatives and bad debts; and to return the system to Glass-Steagall regulations.
  • LaRouche’s solution was rejected, and instead in October 2008, the very central banks which created the crisis, led by the U.S. Federal Reserve, the Bank of England, and the European Central Bank, dictated a $24 trillion global bail-out of the system by national governments. In Australia, Kevin Rudd implemented the bank guarantee, stimulus spending and the first homebuyers grant, and the Future Fund was put at the disposal of the banks to prop them up.
  • By July 2009, it was obvious the bail-out had transferred the bankruptcy of the banking system onto the governments which were propping it up. LaRouche forecast that by October the bankruptcy of national governments would trigger the final meltdown.
  • In October 2009, Dubai defaulted on debts of US$59 billion; it was bailed out by Abu Dhabi, but 13 other default risks quickly emerged, including the PIGS in Europe—Portugal, Ireland, Greece and Spain—Great Britain, and the biggest danger of all, the U.S.
  • 2010: on 17th January, Sunday Telegraph economics writer Ambrose Evans-Pritchard revealed advanced plans by the European Central Bank (ECB) to enforce draconian austerity measures on the PIGS, dictating massive cuts to wages, pensions and social services so those nations avoided debt default to save the euro. The ECB intoned sovereignty is a “largely obsolete concept” as it declared it would impose a “permanent limitation” on the PIGS. The chief economist of the IMF, Olivier Blanchard, has since called for the PIGS to impose wage cuts to save the euro. Vicious austerity is on the agenda in other places too: In Australia, Kevin Rudd is blaming the deficit on old people living too long, and in the U.S., Barack Obama is slashing Medicare for the elderly to rein in the U.S. deficit.

The world’s central bankers meeting in Sydney are unaccountable powerbrokers, disguised as “independent”, who have replaced accountable governments as managers of the economy, and globalised the financial system under private control. Through them, the financier oligarchs in the City of London, and its satellites in Wall Street, Amsterdam and Zürich etc., are in charge of the financial system—not elected governments.

Just like in the 1930s, the austerity measures planned by the central bankers cannot be implemented through democratic means, because people tend to object to being killed. To save their system in the Great Depression, the leading central bankers in the Bank of England and the Bank for International Settlements, backed the rise of Hitler and Europe’s other fascist régimes to impose their austerity program.

What is Sydney’s secret central bank gathering planning to do this time?

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AIG-Gate: The World's Greatest Insurance Heist

Posted by Admin on February 13, 2010

AIG-Gate: The World’s Greatest Insurance Heist
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Global Research, February 6, 2010
Web of Debt – 2010-02-05

Rumor has it that Timothy Geithner is on his way out as Treasury Secretary, due to his involvement in the AIG scandal that is now unraveling in hearings before the House Oversight and Reform Committee. Bob Chapman writes in The International Forecaster:

Each day brings more revelations of efforts of the NY Fed and Goldman Sachs to hide the details of the criminal conspiracy of the AIG bailout. . . . This is a real crisis on the scale of Watergate. Corruption at its finest.

But unlike the perpetrators of the Watergate scandal, who wound up looking at jail time, Geithner evidently has a golden parachute waiting at Goldman Sachs, not coincidentally the largest recipient of the AIG bailout. At least that is the rumor sparked by an article by Caroline Baum on Bloomberg News, titled “Goldman Parachute Awaits Geithner to Ease Fall.” Hank Paulson, Geithner’s predecessor, was CEO of Goldman Sachs before coming to the Treasury. Geithner, who has come up through the ranks of government, could be walking through the revolving door in the other direction.

Geithner has been under the House microscope for the decision of the New York Fed, made while he headed it, to buy out about $30 billion in credit default swaps (over-the-counter derivative insurance contracts) that AIG sold on toxic debt securities. The chief recipients of this payout were Goldman Sachs, Merrill Lynch, Societe Generale and Deutsche Bank. Goldman got $13 billion, roughly equivalent to its bonus pool for the first 9 months of 2009. Critics are calling the New York Fed’s decision a back-door bailout for the banks, which received 100 cents on the dollar for contracts that would have been worth far less had AIG been put through bankruptcy proceedings in the ordinary way. In a Bloomberg article provocatively titled “Secret Banking Cabal Emerges from AIG Shadows,” David Reilly writes:

[T]he New York Fed is a quasi-governmental institution that isn’t subject to citizen intrusions such as freedom of information requests, unlike the Federal Reserve. This impenetrability comes in handy since the bank is the preferred vehicle for many of the Fed’s bailout programs. It’s as though the New York Fed was a black-ops outfit for the nation’s central bank.

The beneficiaries of the New York Fed’s largesse got paid in full although they had agreed to take much less. In a November 2009 article titled “It’s Time to Fire Tim Geithner,” Dylan Ratigan wrote:

[L]ast November . . . New York Federal Reserve Governor Tim Geithner decided to deliver 100 cents on the dollar, in secret no less, to pay off the counter parties to the world’s largest (and still un-investigated) insurance fraud — AIG. This full payoff with taxpayer dollars was carried out by Geithner after AIG’s bank customers, such as Goldman Sachs, Deutsche Bank and Societe Generale, had already previously agreed to taking as little as 40 cents on the dollar. Even after the GM autoworkers, bondholders and vendors all received a government-enforced haircut on their contracts, he still had the audacity to claim the “sanctity of contracts” in the dealings with these companies like AIG.

Geithner testified that the Fed’s hands were tied and that the bank could not “selectively default on contractual obligations without courting collapse.” But if it was all on the up and up, why all the secrecy? The contention that the Fed had no choice is also belied by a recent holding in the Lehman Brothers bankruptcy, in which New York Bankruptcy Judge James Peck set aside the same type of investment contracts that Secretaries Paulson and Geithner repeatedly swore under oath had to be paid in full in the case of AIG. The judge declared that clauses in those contracts subordinating other claims to the holders’ claims were null and void in bankruptcy.

“And notice,” comments bank analyst Chris Whalen, “that the world has not ended when the holders of [derivative] contracts are treated like everyone else.” He calls the AIG bailout “a hideous political contrivance that ranks with the great acts of political corruption and thievery in the history of the United States.”

If you tell a lie big enough and keep repeating it, said Joseph Goebbels, people will eventually come to believe it. The bailout of Wall Street initiated in September 2008 was premised on the dire prediction that if major counterparties in the massive edifice of derivative contracts were allowed to fall, the whole interlocking house of cards would collapse and take the economy with it. A hijacked Congress dutifully protected the derivatives game with taxpayer money while the real economy proceeded to collapse, the financial sector choosing to put their money into this protected form of speculative betting rather than into the more mundane and risky business of making loans to struggling businesses and homeowners. In the end, $170 billion of federal funds went to AIG and the banks feeding at its trough. Meanwhile, a survey of state finances by the Center on Budget and Policy Priorities think tank found that state governments face a collective $168 billion budget shortfall for fiscal 2010. If the money used to bail out AIG and the banks had been used to bail out the states instead, the states would not be facing insolvency today.

There is no law against gambling, but there is a law against fraud. In Watergate, a special prosecutor was appointed to bring criminal charges; but times seem to have changed.

Ellen Brown developed her research skills as an attorney practicing civil litigation in Los Angeles. In Web of Debt, her latest book, she turns those skills to an analysis of the Federal Reserve and “the money trust.” She shows how this private cartel has usurped the power to create money from the people themselves, and how we the people can get it back. Her eleven books include Forbidden Medicine, Nature’s Pharmacy (co-authored with Dr. Lynne Walker), and The Key to Ultimate Health (co-authored with Dr. Richard Hansen). Her websites are www.webofdebt.com, www.ellenbrown.com, and www.public-banking.com.

Ellen Brown is a frequent contributor to Global Research. Global Research Articles by Ellen Brown

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Vatican Bank Charged with Money Laundering

Posted by Admin on February 8, 2010

Vatican Bank Charged with Money-Laundering

PressTV, January 24. 2010
Published here:  Monday, January 25, 2010 at 7:15 AM

http://battleofearth.files.wordpress.com/2010/01/vaticanbank012510.jpg

Saints in Sinners

The Bank of the Vatican has been accused of laundering USD 200 million by proxy through an Italian creditor, a report indicates.

The allegation of the Vatican bank’s financial corruption has been made by an Italian magazine that pointed to the financial institute’s purported involvement in stealth fiscal transactions —via several accounts —with Italy’s UniCredit Bank, Russia Today television network quoted the Panorama magazine as reporting.

“This corruption is continuing on a regular basis in the Vatican,” claimed Janathan Levy, a lawyer familiar with the bank.

“Again, there’s no reason for a religion to have a bank that does worldwide commercial activities, dealing in gold, dealing in insurance, dealing in property and then hiding behind the Roman Catholic Church,” Levy pointed out.

“I had the privilege to walk inside this bank. It’s nothing like a bank,” the Russian news channel quoted another lawyer, Massimiliano Gabrieli, as saying.

“If you go there you deposit or withdraw money without limit, without any kind of receipt for the bank and for the client. All you have is a single card with a number,” he stated.

The British London Telegraph, has recently ranked the Bank of the Vatican ahead of the Bahamas, Switzerland and Liechtenstein in banking secrecy.

The Vatican has denied all charges.

Read Original Article >>>

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The Money Assassins

Posted by Admin on February 8, 2010

http://battleofearth.files.wordpress.com/2010/02/wallstreet020710.jpg

Stocks and Shares

The Money Assassins

Excerpt from “The Armageddon Conspiracy Website
Published here:  Sunday, February 7, 2010 at 2:38 PM

In Zeitgeist Addendum, “Economic Hitman” John Perkins said:

“We economic hit men really have been the ones responsible for creating this first truly global empire and we work in many different ways. But perhaps the most common is that we will identify a country that has resources our corporations covet, like oil, and then arrange a huge loan to that country from the World Bank or one of it’s sister organizations. But the money never actually goes to the country. Instead it goes to our big corporations to build infrastructure projects in that country. Power plants, industrial parks, ports…things that benefit a few rich people in that country in addition to our corporations, but really don’t help a majority of the people at all. However, the whole country is left holding a huge debt.”

It’s such a big debt they can’t repay it, and that’s part of the plan, that they can’t repay it. And so at some point we economic hit men go back to them and say ‘Listen, you owe us a lot of money. You can’t pay your debts, so sell your oil real cheap to our oil companies, allow us to build a military base in your country, or send troops in support of ours to someplace in the world like Iraq, or vote with us on the next U.N. vote.’ They have to have their electric utility company privatized and their water and sewage system privatized and sold to US corporations or other multinational corporations.

“So there was a whole mushrooming thing, and it’s so typical of the way the IMF and the World Bank work. They put a country in debt, and it’s such a big debt it can’t pay it, and then you offer to refinance the debt and get it to pay even more interest. And you demand this quid pro quo which you call ‘conditionality’ or ‘good governance’ which means basically that they’ve got to sell off their resources, including many of their social services, their utility companies, their school systems sometimes, their penal systems, their insurance systems, to foreign corporations. So it’s a double, triple, quadruple whammie!”

But the economic hitmen aren’t just taking contracts out on nations, they have us in their sights too. Just as they give big loans to countries to saddle them with debts, they give big loans to ordinary men and women too. They give them massive mortgages to pay off, and cards loaded with credit (aka debt). Soon enough, you’re a slave of the system, with no prospect of escape. You have to keep on the treadmill, you have to scamper forwards with the other rats in the rat race, you have to keep your nose clean, or rather extremely dirty with all that brown-nosing you’re having to do. You can’t afford to aggravate your employer. You’re locked into the system. You’re terrified of losing your job because then you won’t be able to pay your debts. The economic hitman’s silencer is pointing at you right between the eyes.

The Old World Order use the use the same tactics on the big and the small scale: whether it’s a nation or an individual, get them into debt and then you own them.

You’re not free, You’re not human. You’re a performing monkey, a rat with no option but to stay in the race. You’re a slave, completely under their control, which was their goal right from the start.

But if you buy property at the right time, you can be a partial winner. House prices might shoot up, and you will have a valuable asset. But what of others who didn’t get on the property ladder at the right time? They might now be priced out of the market. Ownership of houses generates winners and losers. There’s no skill involved, just luck. Did you get your timing right or not? By chance, some do, and others don’t. That chance could shape your future. You might rise up the pecking order, or fall down. You might have an asset that your children will inherit and then they will have an advantage over less fortunate children who have nothing to inherit from their parents.
Why should home ownership dictate your wealth and status, your prospects in life, and even that of your children? It shouldn’t, but it does. It has nothing at all to do with merit.

One of the classic mantras of the Power Elite to maintain their rule is contained in the principle: divide and rule.

Look at how society is constructed. The basic unit is the family. Each family lives in its own small, square box (house), cut off from others. Each has one or more cars in which they can again cut themselves off from others. Each is determined to do the best for its own members, and to hell with everyone else.

A society based on the family is full of division, of narrow self-interest, of fear and distrust of others. Everywhere, there are barriers between people. No one is cooperating. We are in the most horrific zero-sum game where if one family wins another loses. Families rising up are invariably pushing other families down. Rich families send their children to private schools to ensure that they get a better education than those who can’t afford private school. Once you have gone to a private school, and then an elite college or university, you are eligible for the fine things in life: the best jobs, the best houses, the most attractive partners. You are part of a rigged system, a cartel which is designed to favour you and penalize those who don’t share your privileged background. In Britain, this is known as “the old school tie”. If you walk into a job interview and you have the right tie and the right accent, you will get the job. An equally or more meritorious candidate from a poorer background has no chance. This is how society works. This is the gospel of the family.

Anyone who does not come from a good, stable, prosperous family is in real trouble. They are likely to slip into the dreaded underclass where they will lead a life of grinding misery with little or no chance of improving themselves. They will resort to drugs and crime to get them through.

We have been divided into countless selfish, competing little units and we are being ruled by the elite, dynastic families at the top of the pyramid. We live in a disguised feudal system; the lords at the top and the serfs (us) effectively owned by them.

We are all cutting each other’s throats, desperately trying to climb the pyramid and drag down those above us and stand on those below us. No one is ever condemned for saying, “I’d do anything for my family” (this is the principle by which most parents operate), yet Christianity says “Love thy neighbour as thyself”; “Do unto others as you would have them do unto you.” No well-off family loves the underclass, no well-off family wants to be done to as they do unto the underclass. None of these families are Christians, even though they say they believe in Christ.

Capitalism is a cut-throat ideology, a robber’s creed. It’s all about how you can get one over your neighbours, how you can get more money, status and power than others. The “American Dream” is about a person or family rising from nowhere to the very top, above everyone else. It’s not about a whole nation rising.

Life is very simple in many respects. Would you rather have leaders who think that society is improved by raising up everyone, or by those who seek their own personal advantage at any cost, regardless of the impact on others. Do you think Wall Street operates in your interests or its own? And if it is not operating in the interests of all the people, why is it tolerated at all? “Greed is good,” said Gordon Gekko. Perhaps for the likes of him, but not for anyone else.

Why do we sign up for our own servitude? It doesn’t need to be like this.

A very simple moral test can be applied to every decision. Is it done to benefit you alone or to help you and everyone else? Wall Street’s morality is the former; Washington DC’s morality is the former; capitalism promotes the former; the family abides by the former.

The antidote to family is community. The antidote to capitalism is community. The antidote to narrow self-interest is community. The antidote to Wall Street and big business is community. “Christianity” is theoretically (but not in practice) about community. Illumination is about community.

And community is all about trying to create the environment for each and every person to achieve their maximum potential. An underclass would be unacceptable in a society based on community. Racism, sexism, discrimination, privilege would be unacceptable.

At the moment, a tiny elite live as gods while the vast majority of humanity live in grim conditions with only a few dollars a day to survive. Imagine a world where everyone is flourishing, achieving, contributing. What could humanity not achieve? This is the path of light, the way to the True God. What we have at the moment is rule by the Demiurge, based on division, conflict, self-interest, hatred, selfishness and greed. The institutions of the world serve his and their interests, not those of the people. His ideology has triumphed. The Power Elite, the Old World Order, are his Chosen Ones who have implemented his destructive, hateful will to the letter.
Do you think there is a single godly person in Wall Street? They are the high priests of the Demiurge, and their skyscraper offices are his synagogues. Their chosen task in life is to enrich themselves at everyone else’s expense.

To this day there are people working for the defunct organisation Lehman Brothers. Their task is to unravel all of the deals that Lehman was involved with before it collapsed. These people, who took huge bonuses while their bank was crashing, caused by their disastrous decisions, are still being given huge bonuses because otherwise they would leave and it would be impossible to clean up their mess. In other words, they were paid a fortune while they were destroying their bank with their recklessness and stupidity, and now they are being paid a fortune to clean up their own disaster. They win no matter the circumstances. That’s the way the OWO operates.

A bank robber goes into a bank and steals a million dollars – that’s a crime. A chief executive officer goes into a bank, nearly bankrupts it through his incompetence, then takes out a hundred million dollars in salary, share options, benefits in kind and finally an enormous payoff when he finally gets fired. That’s business. It’s entirely legitimate. But think about it – who’s the bigger criminal? Who has done the most damage to the bank? If you are “authorized”, you can do anything you like. You have a licence to help yourself to as much money as you like. No one will stop you.

Who are the authorities? Who appoints them? Who monitors and regulates them? Who is allowed to remove them from office? Do the people ever have any say?

At Davos, a luxury ski resort in Switzerland, world leaders gather annually to discuss the economic future of the world. Politicians, bankers, industrialists, media moguls…the entire ruling class, the Old World Order, come together to decide how to carve up the world pie. You have no say in any of it. No one consults you. Your opinions are ignored. This is the way the world works. Why do you tolerate it? Why does anyone put up with this?

It was these people, those fat cats who go to Davos, who wrecked the world’s economy, who caused millions to lose their jobs and homes. What makes them think they are experts, that they are “good” for the world, that the world would fall apart without them? The reverse is true. If they vanished, it would be the best thing for the world. As the old joke says, what do you call a thousand lawyers at the bottom of the sea? A good start. The same is true for all bankers, accountants, politicians, stock market traders, advertisers, celebrities.

We won’t be free until it’s no longer possible to point at someone and say, “There goes one of the Power Elite.” There should be no Power Elite, no one with vastly more money than others, no one with vastly more influence, no one who is treated as a king.

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The Battle of the Titans: JP Morgan Versus Goldman Sachs

Posted by Admin on February 8, 2010

The Battle of the Titans: JP Morgan Versus Goldman Sachs
Or Why the Market Was Down for 7 Days in a Row
Global Research, January 29, 2010
Web of Debt – 2010-01-28

We are witnessing an epic battle between two banking giants, JPMorgan Chase (Paul Volcker) and Goldman Sachs (Geithner/Summers/Rubin). Left strewn on the battleground could be your pension fund and 401K.

The late Libertarian economist Murray Rothbard wrote that U.S. politics since 1900, when William Jennings Bryan narrowly lost the presidency, has been a struggle between two competing banking giants, the Morgans and the Rockefellers. The parties would sometimes change hands, but the puppeteers pulling the strings were always one of these two big-money players. No popular third party candidate had a real chance at winning, because the bankers had the exclusive power to create the national money supply and therefore held the winning cards.

In 2000, the Rockefellers and the Morgans joined forces, when JPMorgan and Chase Manhattan merged to become JPMorgan Chase Co. Today the battling banking titans are JPMorgan Chase and Goldman Sachs, an investment bank that gained notoriety for its speculative practices in the 1920s. In 1928, it launched the Goldman Sachs Trading Corp., a closed-end fund similar to a Ponzi scheme. The fund failed in the stock market crash of 1929, marring the firm’s reputation for years afterwards. Former Treasury Secretaries Henry Paulson, Robert Rubin, and Larry Summers all came from Goldman, and current Treasury Secretary Timothy Geithner rose through the ranks of government as a Summers/Rubin protégé. One commentator called the U.S. Treasury “Goldman Sachs South.”

Goldman’s superpower status comes from something more than just access to the money spigots of the banking system. It actually has the ability to manipulate markets. Formerly just an investment bank, in 2008 Goldman magically transformed into a bank holding company. That gave it access to the Federal Reserve’s lending window; but at the same time it remained an investment bank, aggressively speculating in the markets.  The upshot was that it can now borrow massive amounts of money at virtually 0% interest, and it can use this money not only to speculate for its own account but to bend markets to its will.

But Goldman Sachs has been caught in this blatant market manipulation so often that the JPMorgan faction of the banking empire has finally had enough. The voters too have evidently had enough, as demonstrated in the recent upset in Massachusetts that threw the late Senator Ted Kennedy’s Democratic seat to a Republican. That pivotal loss gave Paul Volcker, chairman of President Obama’s newly formed Economic Recovery Advisory Board, an opportunity to step up to the plate with some proposals for serious banking reform. Unlike the string of Treasury Secretaries who came to the government through the revolving door of Goldman Sachs, former Federal Reserve Chairman Volcker came up through Chase Manhattan Bank, where he was vice president before joining the Treasury. On January 27, market commentator Bob Chapmanwrote in his weekly investment newsletter The International Forecaster:

“A split has occurred between the paper forces of Goldman Sachs and JP Morgan Chase. Mr. Volcker represents Morgan interests. Both sides are Illuminists, but the Morgan side is tired of Goldman’s greed and arrogance. . . . Not that JP Morgan Chase was blameless, they did their looting and damage to the system as well, but not in the high handed arrogant way the others did. The recall of Volcker is an attempt to reverse the damage as much as possible. That means the influence of Geithner, Summers, Rubin, et al will be put on the back shelf at least for now, as will be the Goldman influence. It will be slowly and subtly phased out. . . . Washington needs a new face on Wall Street, not that of a criminal syndicate.”

Goldman’s crimes, says Chapman, were that it “got caught stealing. First in naked shorts, then front-running the market, both of which they are still doing, as the SEC looks the other way, and then selling MBS-CDOs to their best clients and simultaneously shorting them.”

Volcker’s proposal would rein in these abuses, either by ending the risky “proprietary trading” (trading for their own accounts) engaged in by the too-big-to-fail banks, or by forcing them to downsize by selling off those portions of their businesses engaging in it. Until recently, President Obama has declined to support Volcker’s plan, but on January 21 he finally endorsed it.

The immediate reaction of the market was to drop – and drop, day after day. At least, that appeared to be the reaction of “the market.” Financial analyst Max Keiser suggests a more sinister possibility. Goldman, which has the power to manipulate markets with its high-speed program trades, may be engaging in a Mexican standoff. The veiled threat is, “Back off on the banking reforms, or stand by and watch us continue to crash your markets.” The same manipulations were evident in the bank bailout forced on Congress by Treasury Secretary Hank Paulson in September 2008.

In Keiser’s January 23 broadcast with co-host Stacy Herbert, he explains how Goldman’s manipulations are done. Keiser is a fast talker, so this transcription is not verbatim, but it is close. He says:

“High frequency trading accounts for 70% of trading on the New York Stock Exchange. Ordinarily, a buyer and a seller show up on the floor, and a specialist determines the price of a trade that would satisfy buyer and seller, and that’s the market price. If there are too many sellers and not enough buyers, the specialist lowers the price. High frequency trading as conducted by Goldman means that before the specialist buys and sells and makes that market, Goldman will electronically flood the specialist with thousands and thousands of trades to totally disrupt that process and essentially commandeer that process, for the benefit of siphoning off nickels and dimes for themselves. Not only are they siphoning cash from the New York Stock Exchange but they are also manipulating prices. What I see as a possibility is that next week, if the bankers on Wall Street decide they don’t want to be reformed in any way, they simply set the high frequency trading algorithm to sell, creating a huge negative bias for the direction of stocks. And they’ll basically crash the market, and it will be a standoff.  The market was down three days in a row, which it hasn’t been since last summer. It’s a game of chicken, till Obama says, ‘Okay, maybe we need to rethink this.’”

But the President hasn’t knuckled under yet. In his State of the Union address on January 27, he did not dwell long on the issue of bank reform, but he held to his position. He said:

“We can’t allow financial institutions, including those that take your deposits, to take risks that threaten the whole economy. The House has already passed financial reform with many of these changes. And the lobbyists are already trying to kill it. Well, we cannot let them win this fight. And if the bill that ends up on my desk does not meet the test of real reform, I will send it back.”

What this “real reform” would look like was left to conjecture, but Bob Chapman fills in some blanks and suggests what might be needed for an effective overhaul:

“The attempt will be to bring the financial system back to brass tacks. . . . That would include little or no MBS and CDOs, the regulation of derivatives and hedge funds and the end of massive market manipulation, both by Treasury, Fed and Wall Street players. Congress has to end the ‘President’s Working Group on Financial Markets,’ or at least limit its use to real emergencies. . . . The Glass-Steagall Act should be reintroduced into the system and lobbying and campaign contributions should end. . . . No more politics in lending and banks should be limited to a lending ratio of 10 to 1. . . . It is bad enough they have the leverage that they have. State banks such as North Dakota’s are a better idea.”

On January 28, the predictable reaction of “the market” was to fall for the seventh straight day. The battle of the Titans was on.

Ellen Brown developed her research skills as an attorney practicing civil litigation in Los Angeles. In Web of Debt, her latest book, she turns those skills to an analysis of the Federal Reserve and “the money trust.” She shows how this private cartel has usurped the power to create money from the people themselves, and how we the people can get it back. Her eleven books include Forbidden MedicineNature’s Pharmacy (co-authored with Dr. Lynne Walker), and The Key to Ultimate Health (co-authored with Dr. Richard Hansen). Her websites are www.webofdebt.comwww.ellenbrown.com, and www.public-banking.com.

Ellen Brown is a frequent contributor to Global Research. Global Research Articles by Ellen Brown

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US MILITARY: A Mindset of Barbarism

Posted by Admin on February 8, 2010

The US Military: A Mindset of Barbarism, Part 2

by: Dahr Jamail, t r u t h o u t | Interview

photo

Uncontrolled

Yesterday, Truthout ran the first part of an interview with Dr. Stjepan Mestrovic, a Professor of Sociology at Texas A&M University who has written three books on US misconduct in Iraq: “The Trials of Abu Ghraib: An Expert Witness Account of Shame and Honor,” “Rules of Engagement?: Operation Iron Triangle, Iraq” and “The ‘Good Soldier’ on Trial: A Sociological Study of Misconduct by the US Military Pertaining to Operation Iron Triangle, Iraq.” He has three degrees from Harvard University, including a Master’s degree in clinical psychology, and has been an expert witness in psychology and sociology at several Article 32 hearings, courts-martial and clemency hearings involving US soldiers accused of committing crimes of war in Iraq, including the trials of prison guards involved in the Abu Ghraib scandal.

Dr. Mestrovic’s books meticulously document how the US Army, as an institution, has become dysfunctional, and how illegal rules of engagement (ROE) are issued by officers and politicians at the top of the Army’s hierarchy, but only low-ranking soldiers are punished for carrying out those same rules and orders. As an example, in one of the several hearings Dr. Mestrovic has attended as an expert witness, US soldiers openly admitted they had shot a 75-year-old man who had emerged unarmed from his house, but because the soldiers were following the rule to shoot all “military aged males,” neither they nor their officers were charged for that death.

In the second part of his interview with Truthout, Dr. Mestrovic examines the fallacious nature of the rules of engagement, Operation Iron Triangle in Iraq, the rampant nature of atrocities in the US military today, and the possibility of a solution. In Operation Iron Triangle, Iraqi detainees were murdered by US soldiers under the command of a legendary American colonel, Michael Steele. On May 9, 2006, American soldiers executed three unarmed men they had captured in an operation in the so-called Sunni Triangle in Iraq. Several of these soldiers were court-martialed and imprisoned, but some within the military say that responsibility ultimately lies with Colonel Steele.)

Truthout: What are your thoughts about the “Rules of Engagement?” How are these brought into being? Are they truly expected to work in the field? Given that they are clearly not working, why is that?

Dr. Mestrovic:There is insufficient information to answer the first question at the present time. The creation and actual wording of the written ROE are shrouded in secrecy. At the courts-martial of the accused soldiers in the Operation Iron Triangle killings, the government forbade the introduction of the actual, written ROE into testimony. It only allowed verbal testimony as to what the soldiers heard as to the ROE. The soldiers testified that the order was “to kill every military-aged male.” The brigade commander who apparently issued the order, Col. Michael D. Steele, refused and still refuses to testify and to be cross-examined, so that the question you are asking may never be answered. Presumably, he would know how the ROE are and were brought into being.

Are these ROE expected to work in the field? Again, there does not exist sufficient public information as to what commanders and Pentagon officials believe with regard to this and similar ROE in theory. But I can give you an answer that is concrete and specific to this case. On November 5, 2009, Col. Nathaniel Johnson testified at William Hunsaker’s clemency hearing in Alexandria, Virginia. Hunsaker is one of the convicted soldiers from the Operation Iron Triangle case. Colonel Johnson was one of Colonel Steele’s battalion commanders, and was the “convening authority” who sets the courts-martial into motion. I was an eyewitness to Colonel Johnson’s mesmerizing testimony. He testified that Colonel Steele had created a “toxic command climate” by constantly threatening to remove any of his subordinates, from battalion commanders to first sergeants, who disagreed or questioned his orders. Johnson gave the example that when Steele told the soldiers, “We do not give warning shots,” he would tell his men, “We do give warning shots.” These simmering discrepancies and discontent among the commanders clearly confused the soldiers.

Obviously, in the field, the soldiers encounter many problems in carrying out this ROE. What if the alleged target is holding a child or hiding behind women? In fact, such tactics are so common among the targets that the Army refers to them as a “tactical training point,” namely, that insurgents use human shields to avoid being killed. What should a soldier do in that situation? Do they give warning shots? Do they shoot to wound? Do they take prisoners? Do they carry out the order regardless of consequences? Common sense suggests that the soldier cannot be expected to act as a legal scholar in the heat of battle and debate or discuss what he should do. It is an open question how often situations like this arise in combat. But what I do know is that Colonel Johnson testified that the soldiers were confused, and he recommended that Hunsaker’s sentence be reduced to time served and upgraded to a general discharge so that he could use VA benefits to get treated for PTSD. The clemency board ignored his recommendation and offered no clemency or explanation.

These ROE do not work for the straightforward reason that the “targets” are not abstractions but are human beings who associate with women, children and civilians who are not targets. Therefore, one can rarely “take out the target” without also “taking out” innocent civilians. Moreover, the targets are pre-designated based upon “intelligence.” But in all the cases on which I have worked, I have found that the so-called intelligence was grossly inaccurate. In the Abu Ghraib cases, the government now admits that 90 percent of the detainees were not terrorists or insurgents and were not a threat to Americans. In the Operation Iron Triangle case, the government never determined whether the “targets” were real “bad guys” or just innocent farmers. Who are these secret “sources” that have the power to pre-designate targets for execution? Next to nothing is known about them or the process of using such “intelligence.” What is clear is that the local populations in Iraq and Afghanistan come to hate Americans when innocents are killed by mistake on missions of this sort.

But again, the Army is not a democratic society, so I do not foresee seminars, discussions or public airing of these important issues. These issues are covered up for the most part, and emerge – only partially – through the window into Army society that is offered through the court-martial process. On the other hand, the US is a democratic society and the public has a right to know the ROE that are being carried out in its name.

Truthout: What did you find in your research about Operation Iron Triangle that led to that atrocity?

Dr. Mestrovic: Well, that’s the problem: the killings were apparently routine and were not regarded as an atrocity. Soldiers told me that they were routinely sent out on missions to kill designated “targets.” Their graphic descriptions included finding a shopkeeper and killing him in front of his wife and children. The court transcripts also refer to testimony of “kill-kill” orders, which apparently mean that the target does not have the option to surrender (which would be a “kill-capture” order). In effect, a lot of the missions seem to amount to the “execution squads” that Vice President Cheney mentioned while he was in office. So, in the eyes of the Army, government and soldiers, missions of this sort were not considered “atrocities.”

What made this one episode of Operation Iron Triangle different does not seem to lie in the acts that were committed. As court documents show, at the same time that these particular soldiers who went to prison were carrying out their mission, a different platoon was carrying out a similar mission on another part of the island. The platoon leader, Lieutenant Horne, is quoted as ordering his soldiers, “Kill them all.” Nobody was prosecuted for any of these other killings on the mission.

So the question becomes, why were Hunsaker, Clagett and Girouard prosecuted and sent to prison? Part of the answer lies in the prosecutor’s opening and closing statements. Apparently, the Army wants to send a “message” to the world that it is better than the enemy. And it seems that one way it does this is to periodically send some of its soldiers to prison as a way of making the statement that it does not tolerate war crimes, even though the routine kill-kill orders may be construed as being war crimes. In other words, this particular case, and some related murder cases, appear to be politically motivated, and the soldiers who are picked for prosecution appear to be random, and are definitely treated as expendable by the Army.

In a similar case of killings that CNN dubbed the “Baghdad Canal Killings,” (hyperlink “Baghdad Canal Killings” with HYPERLINK “http://www.cnn.com/2009/US/11/17/army.tapes.canal.killings/index.html” http://www.cnn.com/2009/US/11/17/army.tapes.canal.killings/index.html) it is well-known that the entire platoon participated in the killings, although only three were prosecuted. One of the soldiers, Joshua Hartson, admitted to CNN that he thinks he should have been sent to prison as well, but instead, the government granted immunity from prosecution to him and some of his comrades to testify against the soldiers who were chosen for prosecution.

It is important to note that in all these cases, scores of “atrocities” are included in the court records but were never prosecuted. The real atrocities at Abu Ghraib occurred in the interrogation rooms at the hands of intelligence personnel, and some detainees were murdered, but the government went out of its way to exclude these events from the courts-martial. In every case I have studied, sworn statements report scores of atrocities similar to the ones prosecuted, but again, all references to these other events are excluded from evidence. There appears to be a definite, politically motivated, “social construction” of reality to issues pertaining to how acts are defined, prosecuted or ignored as “atrocities” and war crimes.

Truthout: How rampant do you believe instances like this are, in both Iraq and Afghanistan?

Dr. Mestrovic: Even though no one has access to the secret ROE or the secret ways in which they are devised, it is clear that ROE similar to the ones used at Operation Iron Triangle are still being used, including in Afghanistan. Numerous news stories report that the government is currently using drones to kill pre-designated human targets in Afghanistan and Pakistan based upon “intelligence.” These news stories also routinely report that women, children, and civilians are often killed in the process. The mechanical drones are used exactly the same way as human soldiers are used: to carry out the same ROE that applied to Operation Iron Triangle. Incidentally, news stories suggest that the drone operators who execute these missions while sitting in remote control areas in the US are developing PTSD rates faster than the soldiers who actually engage in battle.

It seems to be the case that we are supposed to be mesmerized by the “postmodern” technology that leads to the use of “simulacra” soldiers and missions. The “target” becomes an image on a screen. But real human beings are carrying out the same ROE, whether in face-to-face confrontations or “simulacra” remote control engagements. And the human toll on both the soldiers and the civilian populations is not “simulacra,” but is very real.

Truthout: What would need to happen in the Army in order for soldiers to behave more along the lines of international law whilst abroad?

Dr. Mestrovic: The most important thing would be for the government to decide to adhere to international law, and the soldiers would follow orders. In any case, the low-ranking soldiers always follow orders. It really comes down to following the letter as well as the spirit of the Nuremberg Principles. In his opening remarks at the Nuremberg Trials, chief US prosecutor Robert Jackson said: “The common sense of mankind demands that law shall not stop with the punishment of petty crimes by little people. It must reach men who possess themselves of great power and make deliberate and concerted use of it to set in motion evils which leave no home in the world untouched.” I put emphasis on Jackson’s phrase, “common sense.” Even though he was a lawyer, he did not refer to the law, which often uses law-speak to justify such crimes. He referred to “common sense,” which resonates with usages of this term by pragmatist philosophers (William James, John Dewey, George Herbert Mead). In other words, everyone knows that it is wrong to kill people who do not show an active hostile intent, no matter how one justifies such acts legally. The “little people” to whom Jackson refers are, in this case, the low-ranking soldiers who were sent to Fort Leavenworth for carrying out the orders of many civilian and military commanders above them in the chain of command. It is a fact that not a single commissioned officer has ever been prosecuted for all the war crimes in the current war, from Abu Ghraib to Operation Iron Triangle. In a complete reversal of Nuremberg Principles, the government prosecutes and imprisons only the “little people” or low-ranking soldiers.

Jackson also specifically referred to the “men of station and rank who do not soil their own hands with blood” as the ones who should be prosecuted for war crimes. I do not foresee a day when the US will prosecute its colonels, generals or high-ranking civilian officials for establishing the policies and ROE that result in atrocities. There is simply no precedent for such a move in the US in the past century. The last time the US prosecuted a high-ranking officer for atrocities committed by his soldiers was in 1860, when it hung the commander of the infamous Andersonville Prison, in which Union soldiers were systematically exterminated by Confederate soldiers. But in other similar historical incidents, the government went out of its way to protect its “men of station and rank.” For example, the Biscari Massacre of 1943 was most likely the result of Gen. George Patton’s speech in which he told his soldiers to take no prisoners and to show no mercy. (In fact, General Patton’s and Colonel Steele’s speeches to their troops are very similar.) But Patton was not indicted, while a Sergeant West was given a life sentence and a Captain Compton was acquitted on the grounds that he was following Patton’s orders. Similarly, many historians believe that Lieutenant Calley was made to be a scapegoat for the “search and destroy” policies that led to My Lai.

In general, and despite its democratic base, the US does not resort to the established doctrine of command responsibility to prosecute “men of station and rank” whose orders result in atrocities. Again, this is not merely a military or legal issue, but a wider, cultural issue. In the recent Wall Street meltdown, the “robber barons” (as Thorstein Veblen called them) who caused the current economic crisis have escaped responsibility, and are rewarding themselves with bonuses. Meanwhile, many average Americans are losing homes, businesses and futures due to the errors in judgment made by the robber barons. The government bailed out the Wall Street firms, but not the average American in economic trouble. A similar principle seems to operate in today’s Army. Colonel Steele, whose ROE resulted in the Operation Iron Triangle tragedy, will no doubt retire with all his benefits intact. Meanwhile, the low-ranking soldiers who carried out his orders are languishing in prison. This American, cultural discrepancy between elitism and democracy has already been explored by sociologists such as C. Wright Mills in “The Power Elite and White Collar.” But without some great cultural awakening, it does not seem that this strange feature of American culture will change anytime soon.

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