Friday, October 31, 2008

The first Boys From Brazil: Nazi graveyard discovered deep in the Amazon rainforest

By Alan Hall
Last updated at 9:07 AM on 24th October 2008

A graveyard of former Nazis bent on creating a 'foreign Fatherland' in the Amazonian rainforests from which to spread Hitler's maniacal beliefs has been discovered in Brazil.

The relics betray a madcap plan back in the 1930s to create a master race thousands of miles from Germany.

The graveyard and other ruins that fanatical Nazis left behind are chronicled in a new book.

Entitled ’The Guayana-Projekt. A German Adventure on the Amazon’ it says die-hard Nazis believed they were destined to settle the world like pioneers of the wild west in America.

Nazi graveyard

Final resting place: Brazilian natives at a Nazi grave in the Amazon. The wooden cross decorated with swastikas carries the inscription: 'Joseph Greiner died here on 2.1.1936'

Nazi graveyard

Discovered: Crosses mark the graves deep in the jungle

It has long been known that Nazis wandered post-war into the remote regions of South America, befriended by fascist governments and military dictatorships.

The 1978 film Boys From Brazil told a of a bizarre plot to clone Hitler that was hatched by Joseph Mengele in his jungle hideout.

But the harshness of the Amazonian jungle was a strange choice of destination.

Historical Nazi 'footprints' are found in grave markers with swastikas, photos found in archives back home and the remains of dwellings.

On an island on a tributary of the River Jary in Brazil author Jens Gluessing found a nine-foot high wooden cross decorated with swastikas that testified to one of the explorers who never made it back to Berlin.

It carries the inscription: 'Joseph Greiner died here on 2.1.1936, a death from fever in the service of German Research Work.'

nazi

Chilling: Gregory Peck as Nazi fiend Dr Joseph Mengele in the 1978 film Boys From Brazil

Locals call the site 'The Nazi graveyard' but it was originally destined to be part of a string of Nazi settlements across the Amazon

which Hitler missionaries would use as jumping-off points to spread the gospel of totalitarianism.

In archives of the Brazilian State Department and the National Museum in Rio de Janeiro, Gluessing found details of Greiner’s jungle mission.

Greiner arrived in 1935, bankrolled by the Nazi government and died of yellow fever or Malaria. He was one of three sent out by S.S race specialists as the vanguard of what they perceived would be a wave of settlers.

Greiner and his compatriots had dozens of helpers with them exploring the region bordering French Guyana with a view to populating it for the Reich. They also had their sights on the neighbouring British and Dutch colonies.

Nazi graveyard

The Guayana project: Nazi's in the jungle Camp. In 1935 German researchers went on an expedition of the Brazilian jungles

Nazi graveyard

With the natives: In 1935 German researchers went on an expedition of the Brazilian jungles

They sent back to Berlin details of how a German soldiers should live in Brazil, even though their cover story was that they were collecting specimens of fauna and wildlife.

Schulz Kampfhenkel, an officer in the S.S. and leader of the expedition which claimed Greiner’s life, returned from the jungles and submitted to his boss Heinrich Himmler details of the ’Guayana Project.’

'The two largest scantly populated, but rich in resources, areas on earth are in Siberia and South America,' he wrote to Himmler. 'They alone offer spacious immigration and settlement possibilities for the Nordic peoples.'

As Siberia semed likely to fall at that time to China, he recommended colonising Amazonia for 'people without living space.'

He added in typically Nazi fashion: 'For the more advanced white race it offers outstanding possibilities for exploitation.'

Nazi graveyard

They applied to conquer the Amazon jungle

Project Guyana

A film was produced showing Greiner's work in the jungle in the 1930s. He believed the Nazis could colonise 'Amazonia'

As befitting an S.S. man who bought wholly into concepts of Nazi race purity he said the people who lived there 'cannot be measured in civilised terms as we known them in Germany.'

With one million German settlers in Brazil already, he argued the seedcorn was already there for the expansion of the Third Reich and that they could secure a 'bridgehead' against American influence in the region.

The author found evidence, however, that Himmler had 'scant interest' in his grandiose settlement plans. A Nazi film was made of his travels – but no mention made of the Guayana Project: it remained classified by S.S. intelligence.

'Given time, the plan may be submitted again,' Himmler wrote to his jungle emissary.

But his experiences were put to use by the Nazi war machine: he became Nazi Germany’s leading expert in aerial photo-reconnaissance interpretation.

After the war the Americans arrested him and he was placed in a POW camp in Salzburg, Austria. Released, he died in 1989, still dreaming of a German colony amid the rain forests.

Rainforests

Lost world: The relics were discovered on an island on a tributary of the River Jary in Brazil

Ultrasound Shown to Exert Remote Control of Brain Circuits

Source: Arizona State University College of Liberal Arts and Sciences Released: Wed 29-Oct-2008, 08:00 ET
Embargo expired: Wed 29-Oct-2008, 00:00 ET
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Ultrasound Shown to Exert Remote Control of Brain Circuits

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ULTRASOUND, BRAIN, ELECTRICAL ACTIVITY, GAMING, NEUROSTIMULATION, NON INVASIVE TREATMENTS, BIOMEDICAL, ALZHEIMER'S, STROKE RECOVERY, TRANSLATIONAL RESEARCH

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In a twist on nontraditional uses of ultrasound, a group of neuroscientists at Arizona State University has developed pulsed ultrasound techniques that can remotely stimulate brain circuit activity. Their findings, published in the Oct. 29 issue of the journal Public Library of Science (PLoS) One, provide insights into how low-power ultrasound can be harnessed for the noninvasive neurostimulation of brain circuits and offers the potential for new treatments of brain disorders and disease.




Newswise — In a twist on nontraditional uses of ultrasound, a group of neuroscientists at Arizona State University has developed pulsed ultrasound techniques that can remotely stimulate brain circuit activity. Their findings, published in the Oct. 29 issue of the journal Public Library of Science (PLoS) One, provide insights into how low-power ultrasound can be harnessed for the noninvasive neurostimulation of brain circuits and offers the potential for new treatments of brain disorders and disease.

While it might be hard to imagine the day where doctors could treat post traumatic stress disorders, traumatic brain injury and even Alzheimer’s disease with the flip of a switch, most of us have in fact experienced some of ultrasound’s numerous applications in our daily lives. For example, ultrasound has been used in fetal and other diagnostic medical imaging, ultrasonic teeth cleaning, physiotherapies, or surgical ablation. Ultrasound also provides a multitude of other non-medical uses, including pharmaceutical manufacturing, food processing, nondestructive materials testing, sonar, communications, oceanography and acoustic mapping.

“Studies of ultrasound and its interactions with biological tissues have a rich history dating back to the late 1920s,” lead investigator William “Jamie” Tyler points out. “Several research groups have, for more than a half-century, demonstrated that ultrasound can produce changes in excitable tissues, such as nerve and/or muscle, but detailed studies in neurons at the cellular level have been lacking.”

“We were able to unravel how ultrasound can stimulate the electrical activity of neurons by optically monitoring the activity of neuronal circuits, while we simultaneously propagated low-intensity, low-frequency ultrasound through brain tissues,” says Tyler, assistant professor of neurobiology and bioimaging in the School of Life Sciences in the College of Liberal Arts and Sciences.

Led by Tyler, the ASU research group discovered that remotely delivered low intensity, low frequency ultrasound (LILFU) increased the activity of voltage-gated sodium and calcium channels in a manner sufficient to trigger action potentials and the release of neurotransmitter from synapses. Since these processes are fundamental to the transfer of information among neurons, the authors pose that this type of ultrasound provides a powerful new tool for modulating the activity of neural circuits.

“Many of the stimulation methods used by neuroscientists require the use and implantation of stimulating electrodes, requiring direct contact with nervous tissue or the introduction of exogenous proteins, such as those used for the light-activation of neurons,” Tyler explains.

The search for new types of noninvasive neurostimulation methods led them to revisit ultrasound.

“We were quite surprised to find that ultrasound at power levels lower than those typically used in routine diagnostic medical imaging procedures could produce an increase in the activity of neurons while higher power levels produced very little effect on their activity,” Tyler says.

Other neuroscientists and engineers have also been rapidly developing new neurostimulation methods for controlling nervous system activity and several approaches show promise for the treatment of a wide variety of nervous system disorders. For example, Deep Brain Stimulation (DBS) and Vagal Nerve Stimulation (VNS) have been shown to be effective in the management of psychiatric disorders such as depression, bipolar disorders, post-traumatic stress disorder, and drug addition, as well as for therapies of neurological diseases such as Parkinson’s disease, Alzheimer’s disease, Tourette Syndrome, epilepsy, dystonia, stuttering, tinnitus, recovery of cognitive and motor function following stroke, and chronic pain. Up until now, these two techniques have captured the attention of physicians and scientists; however, these therapies still pose risks to patients because they require the surgical implantation of stimulating electrodes. Thus, these types of therapies are often only available to patients presenting the worst of prognoses.

One prior stumbling block to using ultrasound noninvasively in the brain has been the skull. However, the acoustic frequencies utilized by Tyler and his colleagues to construct their pulsed ultrasound waveforms, overlap with a frequency range where optimal energy gains are achieved between transcranial transmission and brain absorption of ultrasound – which allows the ultrasound to penetrate bone and yet prevent damage to the soft tissues. Their findings are supported by other studies examining the potential of high-intensity focused ultrasound for ablating brain tissues, where it was shown that low-frequency ultrasound could be focused through human skulls.

When asked about the potential of using his groups’ methods to remotely control brain activity, Tyler says: “One might be able to envision potential applications ranging from medical interventions to use in video gaming or the creation of artificial memories along the lines of Arnold Schwarzenegger’s character in ‘Total Recall.’ Imagine taking a vacation without actually going anywhere?”

“Obviously, we need to conduct further research and development, but one of the most exhilarating prospects is that low intensity, low frequency ultrasound permit deep-brain stimulation procedures without requiring exogenous proteins or surgically implanted medical devices,” he adds.

Tyler and the other ASU researchers will now focus on further characterization of the influence of ultrasound on intact brain circuits and translational research, taking low intensity ultrasound from the lab into pre-clinical trials and treatment of neurological diseases.

Obama Tells The Greatest Lies Ever Told, Even Before Being Elected

The Bulletin ^ | October 30, 2008 | Herb Denenberg

Posted on 30 October 2008 05:11:47 PM by jazusamo

Sen. Barack Obama, as a world-class liar, has come to the top in the list of the greatest lies ever told. Move over such old staples as, "Your check is in the mail," and "I'm from the government and I'm here to help you." Consider the output of Sen. Obama.

The lies bursting forth from one of the great world-class liars are so numerous and extraordinary it is impossible to rank the Top 10 or 20. They all deserve first place recognition. This column has already discussed some of the more noteworthy Sen. Obama lies, such as the first few listed among the long list of the greatest lies ever told.

* "William Ayers [the unrepentant terrorist] was only a guy in the neighborhood." Mr. Ayers it turns out was in fact a close collaborator, friend and associate. But that should surprise no one as Sen. Obama seems to have attracted a list of friends, associates and collaborators who come closer to the FBI's 10 Most Wanted List than to what you would expect a candidate for president to be running with.

* Or how about Sen. Obama's claim he didn't know what Rev. Jeremiah "God Damn America" Wright stood for. When it comes to lies this has to be almost first place among equals. Sen. Obama sat in Rev. Wright's church for 20 years, sought him out because he was a political activist, worked with him, took the title of his book from one of his sermons and on and on. If that doesn't prove Sen. Obama's a liar and can't be trusted, I don't know what will.

* One of Sen. Obama's signature lines is that 95 percent of Americans will get tax cuts or at least avoid tax increases. That means if your income is less than $250,000 a year you're in good shape. But now we've just heard from Sen. Joe Biden the figure is $150,000 and on occasion Sen. Obama's people have used $200,000. You can be sure this is a lie, as the Obama people know you can't pay for the $700 million bailout, tack on another trillion dollars in new spending, give everybody health care and adopt all kinds of other new spending programs and still cut all those tax rates.

It sounds too good to be true and it is too good to be true. It is a lie, pure and simple, and all too typical of the campaign. Before believing that lie, consider his record. He recently voted in favor of raising taxes on those with income as low as $42,000. There's another reason Sen. Obama knows it won't work. He is also going to "soak the rich" and "spread the wealth around." That's his terminology for taxing small business, big business, investors and entrepreneurs out of existence. They are the engines of prosperity and job creation.

When you start raising the capital gains tax rate, the dividend tax rate and the rates on small business entrepreneurs and when you insist on a corporate tax rate among the highest in the world and then slap on windfall taxes, higher payroll taxes for some and other taxes, you kill the goose that lays the golden egg. When you make the risk benefit ratio look much less attractive, when the benefits go down as the tax rate goes up, business just won't play the game. Whether you call this socialism, Marxism or something else, the button line is the same: Our engine of job growth and prosperity slows down big time under the Sen. Obama tax plan, and we all pay the big time price tax for such reckless policies made all the more reckless by their application in bad economic times. You learn in Economics 101 not to raise taxes in an economic turn down. So, of course, Sen. Obama wants to raise taxes in the teeth of a recession.

* Here's another slick Sen. Obama lie. It is slick as it seems to be truthful, but it carries a message Sen. Obama and his campaign know to be false. He says 98 percent of small businesses make less than $250,000 and so his tax plan won't adversely impact small business. The lie is in the details.

Twenty-one of the 27 million small businesses don't even have employees. But when you take the small businesses with income of more than $250,000 you're talking about 70 percent of all small business income. So his tax plan, despite the misleading and meaningless statistic relied on, will severely impact "Joe the Plumber" and most small businesses that provide the jobs and economic prosperity we need. Because of this ill-conceived tax, small business will raise prices, cut back on employment, or not create new jobs.

* Here's the all-time Sen. Obama foreign policy lie: Iran is just a tiny country and not a real threat. Well, maybe that's not a lie. Maybe it's just an untrue statement Sen. Obama actually believes. But if that's the case, it's an even more damning indictment of the foreign policy views of Sen. Obama. His advisers eventually told him his statement was ridiculous and he retracted it. But a president can't take two or three passes to get it right. On foreign policy, Sen. Obama (when without his teleprompter and 200 foreign policy advisers), gets it wrong the first or second time around, and then eventually gets it right.

* Another signature line is that Sen. Obama will bring change, change you can believe in, and all that jazz. Sen. Obama represents, and has always been, an extremist, radical, left-wing liberal Democrat and would revive all the rejected and failed policies of the Democratic Party, most notably more taxes, more spending, bigger government, more onerous regulation and a weaker military and timid and ineffectual foreign policy. That's not change. It just the same old Democratic stuff repackaged with fancy rhetoric.

* Here's a Sen. Obama lie that has to be considered one of the biggest, if not the biggest, lies of the campaign. That lie is that Sen. John McCain and the Republican Party are responsible for the present financial crisis because of their stance on deregulation. In fact, Sen. McCain and the Republican Party wanted to put an end to the abuses at Fannie Mae and Freddie Mac, which were making unsound mortgages in an ill-founded and dangerous plan to make housing affordable for even the credit unworthy.

Sen. McCain issued warnings and proposed remedial legislation. Who told us all was well and went along with the status quo that was heading toward catastrophe: The Democratic Party, spearheaded by Sen.Chris Dodd (who took a sweetheart loan from one of the mortgage companies in on the gravy, that some might view as a bribe), and Rep. Barney Frank who reassured everyone as recently as June 2008 that all was well at Fannie and Freddy. And what was Sen. Obama's role? He was raking in political contributions from those connected with Fannie and Freddy. In fact, he was second only to Mr. Dodd, but in terms of contributions per year he got more tainted money from Fannie and Freddy connections than anyone in the Senate.

The irony and tragedy is that the Republicans and Sen. McCain are being blamed for the financial meltdown that was brought upon us by the improper, shortsighted, unethical activity of the Democratic Party and Democratic legislators such as Messrs. Dodd, Frank and Sen. Obama.

* Another classic lie is that Sen. Obama is a centrist. He tries to portray himself as a moderate and a great compromiser. In fact, he is an extremist, a radical, a socialist, a Marxist and a highly partisan legislator. His proposals are to the far left. His voting is to the far left. And his administration will be to the far left. He is the most liberal member of the Senate, followed by socialist Bernie Sanders in second place followed by Sen. Biden in third. This is probably the most liberal ticket in the history of presidential politics.

* Still another classic lie is he is non-partisan. He has never reached across the aisle and worked with the other party on any issue of real significance. He is, and has always been, a hardline, leftist, extremist and radical. There isn't a non-partisan bone in his record. That quality is reserved for speeches only.

* Sen. Obama constantly harps he wants to help the middle class. That's his rhetoric but his record turns statement into a lie. That's because he's never done anything for the middle class but talk.

* One of his most vicious lies was made right after Russia launched its illegal aggression against neighboring Georgia. Sen. Obama's comment included a statement that we'd have more credibility in such matters if we "set a better example." This suggested that our internationally sanctioned liberation of Iraq from Saddam Hussein was somehow a bad example, and that detracted from our ability to protest Russia's aggression against Georgia. Sen. Obama knows better. America has set the best example in the history of the world for using its treasure and blood to help others, to free others and to fight for the rights and freedom of others.

We saved Europe, and the world, from Nazism, communism and Japanese imperialism. We rebuilt our defeated enemies after World War II. We have sent endless aid to other nations and regions after national disasters. We are responsible for one of the great humanitarian projects to fight the AIDS epidemic in Africa. We have given the whole world the benefit of our endless inventions to improve the health and welfare of all from medical advances of all kinds to the invention of all kinds of technology. We are indeed the golden city on the hill that pours forth the endless benefits of our system of freedom and liberty to all of our citizens and the rest of the world. So where does Sen. Obama, who has had every advantage of our system, come to complain about the example we set.

* One of Sen. Obama's biggest lies is his pledge and promise to take public financing of elections. He broke his promise in a minute, as soon as he saw that private rather than public financing would bring his campaign more money.

Sen. McCain kept his promise. Sen. Obama's promise breaking is especially significant for several reasons. First, he is breaking his promises even before the election. WOW, after the election he'll break them even faster. Second, public financing was one of his key tenets, but it went under the bus as soon as Sen. Obama saw it wasn't expedient at the moment. Third, he went into his usual disingenuous spin to try to excuse himself and lie himself out of it, suggesting his version of private financing was in effect public financing because so many contributions came from small donors. He breaks his promise and then tells a ridiculous lie to excuse his breaking that promise. How good is his promise to hold the line on taxes of everyone making less than $250,000? What are any of his promises worth?

* Sen. Obama claims he is a friend of Israel. Yet he honors and gets grant money for Rashid Khalidi and his organization, knowing that Mr. Khalidi is a virulently anti-Israel operative with links to terrorist organizations. He attended a going-away party for Mr. Khalidi, an Arafat associate, along with unrepentant terrorist Mr. Ayres and pays tribute to Mr. Khalidi. At that party, Mr. Obama sits around and listens to all kinds of anti-Israel speeches. Mr. Khalidi also held a fund-raiser for Sen. Obama and was often his dinner companion.

Investor's Business Daily on its Web site, www.ibdeditorials.com (Oct. 27) concluded, "This should be enough for Obama supporters who stand behind Israel to rethink their vote. Those concerned about honesty and integrity should do the same, since Obama has sworn to be a friend of Israel." When confronted with this, Sen. Obama will probably say (as he did in the case of terrorist Mr. Ayers) he is just a guy in the neighborhood.

Incidentally, the Los Angeles Times has a tape of the Mr. Khalidi going away party, an Israel-bashing session in which Sen. Obama participated. The Times has refused to release the tape, in keeping with the mainstream media's campaign to sell Sen. Obama and keep the truth from the public. For that reason, you can be sure Sen. Obama is a hundred times more dangerous and unqualified than portrayed by the mainstream media.

Sen. Obama also attended Rev. Wright's church. Rev. Wright was and is well known for his speaking and writing was often laced with anti-Israel commentary. Sen. Obama says he's a friend of Israel, but if he were would he be supporting, working with, and praising a stable of anti-Israel, anti-Semitic friends?

* One of the cruelest lies of the Obama campaign was the claim Sen. McCain is out of touch because he doesn't make a lot of use of the computer. He doesn't because of war injuries.

* There are many other Obama campaign spots that depend on lies. For example, one suggested Sen. McCain was willing to stay and fight in Iraq for 100 years. Sen. McCain had simply made the point that, as for example, in Germany we still have troops there more than 60 years after the end of World War II. So that's entirely different than fighting a 60-year or a 100-year war.

* I won't even get into the whopping lies from Sen. Biden, as that would require a 30-volume encyclopedia. I will mention perhaps the latest. He said, in the now famous Florida satellite interview Sen. Obama didn't say he wants to "spread the wealth around."

He did say that and he said much worse in the now famous 2001 interview in which he says one of the great failures of the civil rights movement was its failure to get more redistributive justice, i.e., spreading the wealth around.

I could go on, but remember this is only a small sample of Sen. Obama's lies proving his basic dishonesty and proving he is unfit for high office. Remember, also, he has not been vetted by the mainstream media, and even when it made feeble attempts to do so, he usually stonewalled or brushed aside the questions.

We don't know enough about him to even consider him seriously as a candidate. But we do know enough about him to compel a vote against him.

Herb Denenberg is a former Pennsylvania Insurance Commissioner, Pennsylvania Public Utility Commissioner, and professor at the Wharton School. He is a longtime Philadelphia journalist and consumer advocate. He is also a member of the Institute of Medicine of the National Academy of the Sciences. His column appears daily in The Bulletin. You can reach him at advocate@ thebulletin.us.

Wednesday, October 29, 2008

In wake of U.S. attack, Syria shuts down American institutions

γαρ | 28.10.2008 18:13

The Syrian cabinet decided on Tuesday to shut down an American school and an American cultural center in Damascus, the Syria's official SANA news agency said, two days after a U.S. military raid in Syria. Syria said the Sunday helicopter strike on the village of Sukkariyeh, five miles (8 kilometers) from the border with Iraq, killed eight civilians..

the hit
the hit

funerals..
funerals..


In wake of U.S. attack, Syria shuts down American institutions
http://www.haaretz.com/hasen/spages/1032215.html
The Syrian cabinet decided on Tuesday to shut down an American school and an American cultural center in Damascus, the Syria's official SANA news agency said, two days after a U.S. military raid in Syria. Syria said the Sunday helicopter strike on the village of Sukkariyeh, five miles (8 kilometers) from the border with Iraq, killed eight civilians while a U.S. official said the raid was believed to have killed a major al Qaida operative who helped smuggle foreign fighters into Iraq. Syria said four U.S. helicopters attacked the border region in eastern Syria. Iraq, which said the raid targeted staging grounds used by militants, denounced the air strike. France and Russia have also condemned the attack.
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According to the SANA report, the Syrian cabinet also decided to postpone a Syrian-Iraqi bilateral committee meeting which was scheduled for Nov. 12- Nov. 13 in Baghdad. Moallem has characterized the attack as a "terrorist aggression" and said if repeated, Syria would defend itself. He has called for U.S. and Iraqi investigations into the attack. Meanwhile Tuesday, Syria rejected the allegations that the raid had targeted an al-Qaida operative. "What they are saying is just unjustified. I deny it totally," Moallem told reporters. A U.S. official said on Monday that the raid was aimed at Abu Ghadiya, a former lieutenant of Abu Musab al-Zarqawi, the leader of al-Qaida in Iraq who was killed in a U.S. air strike in 2006. "What they are saying is not accurate," said Moallem, who is on a visit to London. "Do you imagine that a man with his three children are terrorists?" he said, referring to one of the civilians Syria said was killed in the raid. He stressed that the victims of the raid were innocent civilians, and repeated his accusation that the attack was a "terrorist act" by the United States. "This is a war crime attempt by the United States against Syria," he said. Asked if Syria planned any further diplomatic steps, Moallem said "we are awaiting their response. According to what we will receive, we will decide our options." The Bush administration, which will leave office in January after the U.S. presidential election on Nov. 4, accuses Syria of not doing enough to stem the flow of al-Qaida fighters and other insurgents into Iraq. Iraq's government denounced the U.S. action on Tuesday in an unusual rebuke of Washington. "The Iraqi government rejects U.S. aircraft bombarding posts inside Syria," spokesman Ali al-Dabbagh said
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επίσης ,, http://uk.news.yahoo.com/22/20081028/tpl-uk-iraq-syria-usa-43a8d4f.html

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- Homepage: http://garizo.blogspot.com/2008/10/h-syria-shuts-down-american.html

Biden Mentions New World Order

JAY WARREN
Canadian Free Press
October 29, 2008

WARREN: “Senator… I want to start off asking the same question I did when we talked via satellite last week. We were talking about your comment that the next president would face a generated crisis that would test him. I asked ‘if you believe we are going to have a crisis, how has Obama been tested in the past to deal with it?’ You gave us a long list of mistakes you believe John McCain has made, but nothing for Senator Obama.”

Last week, this is what Biden said to my question: “Let’s start off, John McCain has never been tested either. And when they’ve both been tested and state their opinion as senator, John McCain has been wrong. Barack Obama has been right. Barack Obama warned about the mistake in Iraq. He was right. John McCain said we’d be greeted as liberators. He was wrong.”

WARREN: “So, second bite at the apple. Any specifics examples of senator Obama’s experience that prepare him to lead in a national security crisis?”

BIDEN: “Barack Obama suggested we’d be in real trouble if we went into Iraq the way we did. Barack Obama has been calling for a year and a half that we need to invest more resources in Afghanistan where the actual folks who plotted against us are still living the mountains between Afghanistan and Pakistan. Barack Obama suggested we should be negotiating with North Korea, as the Bush Administration finally did getting an agreement to do away with their nuclear facility.”

WARREN: “There were a lot of issues where he might be siding on the right issue, but what I’m wondering is any concrete examples of how he’s actually impacted policy that has affected national security?”

BIDEN: “He’s changed the entire debate on policy by leading the effort to say that we in fact should set a timeline to draw down American troops in Iraq handing over authority to the Iraqis. What’s happened? George Bush has now adopted the Barack Obama plan. You saw that prime minister Maliki the guy who heads up the government in Iraq embracing Barack’s policy.”

WARREN: “Many of the polls show that your ticket may be headed to victory in November and that the Democrats may pick up a larger number of seats in the House and perhaps win 10 seats for a filibuster proof Senate. Republicans are beginning to make the argument that that means Democratic dominance in Washington, unchecked power. Is that a good thing?”

BIDEN: “First of all, we’re no where near there. We have 8 days to go. This is the most important election in the public’s life. They are looking at these races very closely. I think this is going to be much closer than everyone thinks it is. Second, with regard to the Democratic Party, this is a new Democratic Party not the party of the 70s and 80s. This is a party that has adjusted to the realities of a new world order.” He went on to say, “I think there is going to be a collaborative effort to make the 21st century an American century.”

WARREN: “You mention that you’ll have to work with leaders on the Hill, which would include the Speaker of the House a Democrat and the Democratic Senate Majority Leader. Can you give me some specific examples where your team might differ from their agenda or are your agendas identical?”

BIDEN: “I don’t know that. It’s too early to tell. Not only are our agendas similar in how to deal with the economy, how to deal with foreign policy and taxes. It’s a view shared by a significant number of Republicans.” He went on to say, “There’s an emerging consensus that we need a new direction and it’s got to be done in a bipartisan way.”

WARREN: “Sarah Palin is making a big swing through Virginia today, stopping in salem this evening. She’s making the claim that you guys are already doing your victory lap and that Senator Obama has already written in inaugural address. Is your team a little over-confident?”

BIDEN: “Not at all. Looks when’s the last time a Democrat won Virginia for Lord’s sake? 1964. I’m in North Carolina, our 10th time here. I would not call that over confident. We think this is going to be a very difficult race. I think that the reason Governor Palin and Senator McCain are talking the way they are is because they don’t want to talk about the economy. They don’t have anything to talk about. So what are they talking about? They’re talking about attacks on Barack Obama that we’re measuring the drapes and taking victory laps. We have a long way to go before that victory lap. I think it’s going to be a very close election.”

Yukihisa Fujita questions 9/11 for third time in Japanese Diet

911video.de
October 29, 2008


You Tube Link (edited version of the 20 minute long speech - complete version will be added)

On October 22, 2008, Yukihisa Fujita, Congressman for the Democratic Party of Japan made a 20 minute speech on the floor of the Japanese Diet or House of Representatives. For the third time this year he directly questioned the official version of 9/11

At the same time he called on the government to stop all support for the US-led military operations. After presenting reports of heavy civilian and military losses in Iraq and Afghanistan he went on to describe the Kucinich impeachment debate in US-Congress and its wide support by representatives of the House. In detail he listed the particular reasons for impeachment, that US-Congressman Dennis Kucinich presented to congress this summer. He also reported on Ron Paul’s demands for impeachment and new 9/11 investigations.

Fujita emphasized that there was never an official police investigation into the deaths of the 24 Japanese citizens who were killed on 9/11, he then talked about questions put forward by Japanese victim`s families of 9/11 to the former Prime Minister Koshimizu and asked why the government never responded.


This time there was no public broadcast of his 20 minute speech on NHK television. It was the third time since January, that Yukihisa Fujita voiced his doubts about 9/11 on the floor of the Japanese parliament.

Fujita is a member of the Democratic Party of Japan which is the main opposition party, holding a majority in the Upper House of Parliament and has 36 % of the seats in the Lower House, the more powerful house. Mr. Fujita`s calls for a new investigation are backed by his party leadership. He made also presentations to members of other parties.

Yukihisa Fujita is currently working to form an international coalition to demand an independent, international 9/11 investigation and has been in contact with politicians in Europe and the US.

Here a video interview with MP Fujita in July 2008 in Berlin

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Videos of Mr. Fujita’s speech in Japanese Parliament April 2008
http://www.youtube.com/watch?v=ZqtQrP2CZwY
http://www.youtube.com/watch?v=zOi8XrceC9w

Videos of Mr. Fujita’s speech in Japanese Parliament Jan. 2008
http://www.youtube.com/watch?v=Oq4_07FmCyA

http://www.youtube.com/watch?v=02esZQr-u74
http://www.youtube.com/watch?v=7t-dZiNE9NI
http://www.youtube.com/watch?v=wV_WIZ1PDt4
http://www.youtube.com/watch?v=VaEGhiHhZ1Y
http://www.youtube.com/watch?v=A43IxJcFJEw
http://www.youtube.com/watch?v=0hUexQWI948

http://www.youtube.com/watch?v=MKtv36Sh3iQ

Generals Try to Stop Imminent World War III

Sorcha Faal | FourWinds10.com
October 27, 2008

A most stunning report is circulating in the Kremlin stating that some of the most Senior Generals in the United States Military are ‘pleading’ for ‘immediate’ help from both Russian and European Military to prevent their current President from starting World War III in the coming weeks.

Even more shocking, this plea for help by the America Military Establishment came from their most senior military officer Chairman of the US Joint Chiefs of Staff Admiral Mike Mullen, and who in an unprecedented secret meeting, held this past weekend in the neutral country of Finland, met with General Nikolai Makarov, the head of Russia’s General Staff.

This meeting between the United States and Russia’s top Military Officials followed an equally unprecedented meeting held also this past week in the Adirondack Mountain Region of New York State between these US Generals and all of the top Military Officers and Staff of Britain, France, Australia, New Zealand, Italy, Japan, Canada, Denmark, The Netherlands and South Korea.

According to these reports the American Generals have stated their ‘firm belief’ that the United States and Europe are under an ‘imminent threat’ for large scale attacks by nuclear weapons prior to the US elections, due to be held on November 4th, that will completely destroy both America and the European Union in a bid to establish upon both these Nations a new ‘Forth Reich’ modeled upon the former German Nazi Empire.

Russian Military Analysts state in these reports that the fascist forces currently in power in both the United States and European Union already have in place all of the necessary laws and private paramilitary forces needed to accomplish such an astounding coup of virtually the entire Western World.

This new ‘Forth Reich’, these reports continue, is planned to ruled from the ‘new’ Western capital cities of Denver, Colorado and Vienna, Austria as Washington D.C. and nearly all of Europe’s main capitol cities will be destroyed in this planned attack.

As we had, also, previously warned, Russian Military and Political Forces have been on ‘high alert’ over the planned destruction of the United States by those factions within it who see that their days are numbered but will not allow their most guarded secrets to ever be revealed to their citizens, even to the extreme of aligning themselves with dissident European factions currently engaged in the destruction of the entire Global financial system.

Equally as critical to the Europeans is the rapid ascent to power of their new ‘fascist masters’ in Vienna who though mourning the ‘accidental’ death of their most popular right-wing Nazi leader, Jörg Haider, are also rejoicing that for the first time since the defeat of the Germany Nazis in World War II all of their right-wing parties are now aligned and completely control Austria’s government.

With the right-wing power blocs currently placed in both America and Europe one can readily see the grave concerns being expressed by America’s Top Generals as with these planned fascist attacks bringing down the entire West our World will, indeed, be plunged into Total Global War.

However, the American Generals plea appears to have been answered as reports from Austria are stating that a successful attack was made upon that Nations most elite commando unit codenamed ‘Cobra’ by the piloting of an as yet unidentified drone aircraft and may have, these reports say, destroyed the planning for the nuclear attacks upon European capitals these fascist forces were tasked with carrying out.

It is important to note that the planned fascist destruction of the United States should come as no surprise to the American people as their very President and his family have long standing ties to the Nazis and were instrumental in funding the rise of Adolph Hitler.

Also, since the ending of World War II the American supporters of Nazism were instrumental in bringing to the United States the main architects of German fascism to recreate their ‘One World’ dream and began the changing of American law to reflect those of the German Nazi Empire in 1968 when they enacted new gun laws that were ‘word for word’ taken from the Nazi German laws enacted in 1938.

And as incredible as it may seem, the American fascist forces currently in control of their Nation had virtually no fear in duplicating Nazi Germany’s 1933 Reichstag Fire, which enabled Hitler to assume dictatorial powers and robbed German citizens of all of their freedoms, with the planned attacks of September 11, 2001, and which like the Nazi’s saw the enacting of new laws which have enslaved the American people in a police state which is now more efficient than the Gestapo ever was.

To the American people not protecting themselves from the catastrophes due to fall upon them it can only be said that these truths are so enormous and chilling in their implications that they believe they could not possible be true. This was a sentiment the German people once had too.

[Ed. Note: The United States government actively seeks to find, and silence, any and all opinions about the United States except those coming from authorized government and/or affiliated sources, of which we are not one. No interviews are granted and very little personal information is given about our contributors, or their sources, to protect their safety.]

Monday, October 13, 2008

What is taking place today was planned long in the past

Aldous Huxley’s Mind Control and Depopulation Interview

Infowars
October 12, 2008

THE MIKE WALLACE INTERVIEW
Guest: Aldous Huxley
5/18/58





Part 1


Part 2


Part 3


WALLACE: This is Aldous Huxley, a man haunted by a vision of hell on earth. A searing social critic, Mr. Huxley 27 years ago, wrote Brave New World, a novel that predicted that some day the entire world would live under a frightful dictatorship. Today Mr. Huxley says that his fictional world of horror is probably just around the corner for all of us. We’ll find out why, in a moment.

(OPENING CREDITS)

WALLACE: Good evening, I’m Mike Wallace. Tonight’s guest, Aldous Huxley, is a man of letters, as disturbing as he is distinguished. Born in England, now a resident of California, Mr. Huxley has written some of the most electric novels and social criticism of this century.

He’s just finished a series of essays called “Enemies of Freedom,” in which he outlines and defines some of the threats to our freedom in the United States; and Mr. Huxley, right of the bat, let me ask you this: as you see it, who and what are the enemies of freedom here in the United States?

HUXLEY: Well, I don’t think you can say who in the United States, I don’t think there are any sinister persons deliberately trying to rob people of their freedom, but I do think, first of all, that there are a number of impersonal forces which are pushing in the direction of less and less freedom, and I also think that there are a number of technological devices which anybody who wishes to use can use to accelerate this process of going away from freedom, of imposing control.

WALLACE: Well, what are these forces and these devices, Mr. Huxley?

HUXLEY: I should say that there are two main impersonal forces, er… the first of them is not exceedingly important in the United States at the present time, though very important in other countries. This is the force which in general terms can be called overpopulation, the mounting pressure of population pressing upon existing resources.

WALLACE: Uh-huh.

HUXLEY: Uh… this, of course, is an extraordinary thing; something is happening which has never happened in the world’s history before, I mean, let’s just take a simple fact that between the time of birth of Christ and the landing of the May Flower, the population of the earth doubled. It rose from two hundred and fifty million to probably five hundred million. Today, the population of the earth is rising at such a rate that it will double in half a century.

WALLACE: Well, why should overpopulation work to diminish our freedoms?

HUXLEY: Well, in a number of ways. I mean, the… the experts in the field like Harrison Brown, for example, pointed out that in the underdeveloped countries actually the standard of living is at present falling. The people have less to eat and less goods per capita than they had fifty years ago;

and as the position of these countries, the economic position, becomes more and more precarious, obviously the central government has to take over more and more responsibility for keeping the ship-of-state on an even keel, and then of course you are likely to get social unrest under such conditions, with again an intervention of the central government.

So that, I think that one sees here a pattern which seems to be pushing very strongly towards a totalitarian regime. And unfortunately, as in all these underdeveloped countries the only highly organized political party is the Communist Party, it looks rather as though they will be the heirs to this unfortunate process, that they will step into the power… the position of power.

WALLACE: Well then, ironically enough one of the greatest forces against communism in the world, the Catholic Church, according to your thesis would seem to be pushing us directly into the hands of the communists because they are against birth control.

HUXLEY: Well, I think this strange paradox probably is true. There is, er…, it’s an extraordinary situation actually. I mean, one has to look at it, of course, from a biological point of view: the whole essence of biological life on earth is a question of balance and what we’ve done is to practice death control in the most intensive manner without balancing this with birth control at the other end. Consequently, the birth rates remain as high as they were and death rates have fallen substantially. (COUGHS)

WALLACE: All right then, so much, for the time being anyway, for overpopulation. Another force that is diminishing our freedoms?

HUXLEY: Well another force which I think is very strongly operative in this country is the force of what may be called of overorganization. Er… As technology becomes more and more complicated, it becomes necessary to have more and more elaborate organizations, more hierarchical organizations, and incidentally the advance of technology is being accompanied by an advance in the science of organization.

It’s now possible to make organizations on a larger scale than it was ever possible before, and so that you have more and more people living their lives out as subordinates in these hierarchical systems controlled by bureaucracy, either the bureaucracies of big businesses or the bureaucracies of big government.

WALLACE: Uh-huh. Uh-huh. Now the devices that you were talking about, are there specific devices or er… methods of communication which diminish our freedoms in addition to overpopulation and overorganization?

HUXLEY: Well, there are certainly devices which can be used in this way. I mean, let us er… take after all, a piece of very recent and very painful history is the propaganda used by Hitler, which was incredibly effective.

I mean, what were Hitler’s methods? Hitler used terror on the one kind, brute force on the one hand, but he also used a very efficient form of propaganda, which er… he was using every modern device at that time. He didn’t have TV., but he had the radio which he used to the fullest extent, and was able to impose his will on an immense mass of people. I mean, the Germans were a highly educated people.

WALLACE: Well, we’re aware of all this, but how do we equate Hitler’s use of propaganda with the way that propaganda, if you will, is used let us say here in the United States. Are you suggesting that there is a parallel?

HUXLEY: Needless to say it is not being used this way now, but, er… the point is, it seems to me, that there are methods at present available, methods superior in some respects to Hitler’s method, which could be used in a bad situation. I mean, what I feel very strongly is that we mustn’t be caught by surprise by our own advancing technology.

This has happened again and again in history with technology’s advance and this changes social condition, and suddenly people have found themselves in a situation which they didn’t foresee and doing all sorts of things they really didn’t want to do.

WALLACE: And well, what… what do you mean? Do you mean that we develop our television but we don’t know how to use it correctly, is that the point that you’re making?

HUXLEY: Well, at the present the television, I think, is being used quite harmlessly; it’s being used, I think, I would feel, it’s being used too much to distract everybody all the time. But, I mean, imagine which must be the situation in all communist countries where the television, where it exists, is always saying the same things the whole time; it’s always driving along.

It’s not creating a wide front of distraction it’s creating a one-pointed, er… drumming in of a single idea, all the time. It’s obviously an immensely powerful instrument.

WALLACE: Uh-huh. So you’re talking about the potential misuse of the instrument.

HUXLEY: Exactly. We have, of course… all technology is in itself moral and neutral. These are just powers which can either be used well or ill; it is the same thing with atomic energy, we can either use it to blow ourselves up or we can use it as a substitute for the coal and the oil which are running out.

WALLACE: You’ve even written about the use of drugs in this light.

HUXLEY: Well now, this is a very interesting subject. I mean, in this book that you mentioned, this book of mine, “Brave New World,” er… I postulated it a substance called ’soma,’ which was a very versatile drug. It would make people feel happy in small doses, it would make them see visions in medium doses, and it would send them to sleep in large doses.

Well, I don’t think such a drug exists now, nor do I think it will ever exist. But we do have drugs which will do some of these things, and I think it’s quite on the cards that we may have drugs which will profoundly change our mental states without doing us any harm.

I mean, this is the… the pharmacological revolution which is taking place, that we have now powerful mind-changing drugs which physiologically speaking are almost costless. I mean they are not like opium or like coca… cocaine, which do change the state of mind but leave terrible results physiologically and morally.

WALLACE: Mr. Huxley, in your new essays you state that these various “Enemies of Freedom” are pushing us to a real-life “Brave New World,” and you say that it’s awaiting us just around the corner. First of all, can you detail for us, what life in this Brave New World would you fear so much, or what life might be like?

HUXLEY: Well, to start with, I think this kind of dictatorship of the future, I think will be very unlike the dictatorships which we’ve been familiar with in the immediate past. I mean, take another book prophesying the future, which was a very remarkable book, George Orwell’s “1984.”

Well, this book was written at the height of the Stalinist regime, and just after the Hitler regime, and there he foresaw a dictatorship using entirely the methods of terror, the methods of physical violence. Now, I think what is going to happen in the future is that dictators will find, as the old saying goes, that you can do everything with bayonets except sit on them!

WALLACE: (LAUGHS)

HUXLEY: But, if you want to preserve your power indefinitely, you have to get the consent of the ruled, and this they will do partly by drugs as I foresaw in “Brave New World,” partly by these new techniques of propaganda.

They will do it by bypassing the sort of rational side of man and appealing to his subconscious and his deeper emotions, and his physiology even, and so, making him actually love his slavery.

I mean, I think, this is the danger that actually people may be, in some ways, happy under the new regime, but that they will be happy in situations where they oughtn’t to be happy.

WALLACE: Well, let me ask you this. You’re talking about a world that could take place within the confines of a totalitarian state. Let’s become more immediate, more urgent about it. We believe, anyway, that we live in democracy here in the United States. Do you believe that this Brave New World that you talk about, er… could, let’s say in the next quarter century, the next century, could come here to our shores?

HUXLEY: I think it could. I mean, er… that’s why I feel it so extremely important here and now, to start thinking about these problems. Not to let ourselves be taken by surprise by the… the new advances in technology. I mean the… for example, in the regard to the use of the… of the drugs.

We know, there is enough evidence now for us to be able, on the basis of this evidence and using certain amount of creative imagination, to foresee the kind of uses which could be made by people of bad will with these things and to attempt to forestall this, and in the same way,

I think with these other methods of propaganda we can foresee and we can do a good deal to forestall. I mean, after all, the price of freedom is eternal vigilance.

WALLACE: You write in Enemies of Freedom, you write specifically about the United States. You say this, writing about American political campaigns you say, “All that is needed is money and a candidate who can be coached to look sincere; political principles and plans for specific action have come to lose most of their importance. The personality of the candidate, the way he is projected by the advertising experts, are the things that really matter.”

HUXLEY: Well, this is the… during the last campaign, there was a great deal of this kind of statement by the advertising managers of the campaign parties. This idea that the candidates had to be merchandised as though they were so-called two-faced and that you had to depend entirely on the personality.

I mean, personality is important, but there are certainly people with an extremely amiable personality, particularly on TV, who might not necessarily be very good in political… positions of political trust.

WALLACE: Well, do you feel that men like Eisenhower, Stevenson, Nixon, with knowledge aforethought were trying to pull the wool over the eyes of the American public?

HUXLEY: No, but they were being advised by powerful advertising agencies who were making campaigns of a quite different kind from what had been made before. and I think we shall see probably, er… all kinds of new devices coming into the picture. I mean, for example, this thing which got a good deal of publicity last autumn, subliminal projection.

I mean, as it stands, this thing, I think is of no menace to us at the moment, but I was talking the other day to one of the people who has done most experimental work in the… psychological laboratory with this, was saying precisely this, that it is not at the moment a danger, but once you’ve established the principle that something works, you can be absolutely sure that the technology of it is going to improve steadily.

And I mean his view of the subject was that, well, maybe they will use it up to some extent in the 1960 campaign, but they will probably use it a good deal and much more effectively in the 1964 campaign because this is the kind of rate at which technology advances.

WALLACE: And we’ll be persuaded to vote for a candidate that we do not know that we are being persuaded to vote for.

HUXLEY: Exactly, I mean this is the rather alarming picture that you’re being persuaded below the level of choice and reason.

WALLACE: In regard to advertising, which you mentioned just a little ago, in your writing, particularly in “Enemies of Freedom,” you attack Madison Avenue, which controls most of our television and radio advertising, newspaper advertising and so forth. Why do you consistently attack the advertising agencies…

HUXLEY: Well, no I… I think that, er… advertisement plays a very necessary role, but the danger it seems to me in a democracy is this… I mean what does a democracy depend on? A democracy depends on the individual voter making an intelligent and rational choice for what he regards as his enlightened self-interest, in any given circumstance.

But what these people are doing, I mean what both, for their particular purposes, for selling goods and the dictatorial propagandists are for doing, is to try to bypass the rational side of man and to appeal directly to these unconscious forces below the surfaces so that you are, in a way, making nonsense of the whole democratic procedure, which is based on conscious choice on rational ground.

WALLACE: Of course, well, maybe… I… you have just answered this next question because in your essay you write about television commercials, not just political commercials, but television commercials as such and how, as you put it, “Today’s children walk around singing beer commercials and toothpaste commercials.” And then you link this phenomenon in some way with the dangers of a dictatorship. Now, could you spell out the connection or, have… or do you feel you’ve done so sufficiently?

HUXLEY: Well, I mean, here, this whole question of children, I think, is a terribly important one because children are quite clearly much more suggestible than the average grownup; and again, suppose that, er… that for one reason or another all the propaganda was in the hands of one or very few agencies, you would have an extraordinarily powerful force playing on these children, who after all are going to grow up and be adults quite soon. I do think that this is not an immediate threat, but it remains a possible threat, and…

WALLACE: You said something to the effect in your essay that the children of Europe used to be called ‘cannon fodder’ and here in the United States they are ‘television and radio fodder.’

HUXLEY: Well, after all, you can read in the trade journals the most lyrical accounts of how necessary it is, to get hold of the children because then they will be loyal brand buyers later on. But I mean, again you just translate this into political terms, the dictator says they all will be ideology buyers when they are grownup.

WALLACE: We hear so much about brainwashing as used by the communists. Do you see any brainwashing other than that which we’ve just been talking about, that is used here in the United States, other forms of brainwashing?

HUXLEY: Not in the form that has been used in China and in Russia because this is, essentially, the application of propaganda methods, the most violent kind to individuals; it is not a shotgun method, like the… the advertising method. It’s a way of getting hold of the person and playing both on his physiology and his psychology until he really breaks down and then you can implant a new idea in his head.

I mean the descriptions of the methods are really blood curdling when you read them, and not only methods applied to political prisoners but the methods applied, for example, to the training of the young communist administrators and missionaries. They receive an incredibly tough kind of training which may cause maybe twenty-five percent of them to break down or commit suicide, but produces seventy-five percent of completely one-pointed fanatics.

WALLACE: The question, of course, that keeps coming back to my mind is this: obviously politics in themselves are not evil, television is not in itself evil, atomic energy is not evil, and yet you seem to fear that it will be used in an evil way. Why is it that the right people will not, in your estimation, use them? Why is it that the wrong people will use these various devices and for the wrong motives?

HUXLEY: Well, I think one of the reasons is that these are all instruments for obtaining power, and obviously the passion for power is one of the most moving passions that exists in man; and after all, all democracies are based on the proposition that power is very dangerous and that it is extremely important not to let any one man or any one small group have too much power for too long a time.

After all what are the British and American Constitution except devices for limiting power, and all these new devices are extremely efficient instruments for the imposition of power by small groups over larger masses.

WALLACE: Well, you ask this question yourself in “Enemies of Freedom.” I’ll put your own question back to you. You ask this, “In an age of accelerating overpopulation, of accelerating overorganization, and ever more efficient means of mass communication, how can we preserve the integrity and reassert the value of the human individual?” You put the question, now here’s your chance to answer it Mr. Huxley.

HUXLEY: Well, this is obviously… first of all, it is a question of education. Er… I think it’s terribly important to insist on individual values, I mean, what is a… there is a tendency as a… you probably read a book by Whyte, “The Organization Man”, a very interesting, valuable book I think, where he speaks about the new type of group morality, group ethic, which speaks about the group as though the group were somehow more important than the individual.

But this seems, as far as I’m concerned, to be in contradiction with what we know about the genetical makeup of human beings, that every human being is unique. And it is, of course, on this genetical basis that the whole idea of the value of freedom is based.

And I think it’s extremely important for us to stress this in all our educational life, and I would say it’s also very important to teach people to be on their guard against the sort of verbal booby traps into which they are always being led, to analyze the kind of things that are said to them.

Well, I think there is this whole educational side of… and I think there are many more things that one could do to strengthen people, and to make them more aware of what’s being done.

WALLACE: You’re a prophet of decentralization?

HUXLEY: Well, the… yes… if it… it’s feasible. It’s one of the tragedies, it seems to me. I mean, many people have been talking about the importance of decentralization in order to give back to the voter a sense of direct power. I mean… the voter in an enormous electorate field is quite impotent, and his vote seems to count for nothing.

This is not true where the electorate is small, and where he is dealing with a… with a group which he can manage and understand… and if one can, as Jefferson after all suggested, break up the units, er… into smaller and smaller units and so, get a real, self-governing democracy.

WALLACE: Well, that was all very well in Jefferson’s day, but how can we revamp our economic system and decentralize, and at the same time meet militarily and economically the tough challenge of a country like Soviet Russia?

HUXLEY: Well, I think the answer to that is that there are… it seems to me that you… that production, industrial production is of two kinds. I mean, there are some kinds of industrial production which obviously need the most tremendously high centralization, like the making of automobiles for example.

But there are many other kinds where you could decentralize quite easily and probably quite economically, and that you would then have this kind of decentralized, like after all you begin to see it now, if you travel through the south, this decentralized textile industry which is springing up there.

WALLACE: Mr. Huxley, let me ask you this, quite seriously, is freedom necessary?

HUXLEY: As far as I am concerned it is.

WALLACE: Why? Is it necessary for a productive society?

HUXLEY: Yes, I should say it is. I mean, a genuinely productive society. I mean you could produce plenty of goods without much freedom, but I think the whole sort of creative life of man is ultimately impossible without a considerable measure of individual freedom, of initiative, creation, all these things which we value, and I think value properly, are impossible without a large measure of freedom.

WALLACE: Well, Mr. Huxley, take a look again at the country which is in the stance of our opponent anyway, it would seem, anyway it would seem to be there, Soviet Russia. It is strong, and getting stronger, economically, militarily, at the same time it’s developing its art forms pretty well, er… it seems not unnecessarily to squelch the creative urge among its people. And yet it is not a free society.

HUXLEY: It’s not a free society, but here is something very interesting that those members of the society, like the scientists, who are doing the creative work, are given far more freedom than anybody else. I mean, it is a privileged aristocratic society in which, provided they don’t poke their noses into political affairs, these people are given a great deal of prestige, a considerable amount of freedom, and a lot money.

I mean, this is a very interesting fact about the new Soviet regime, and I think what we are going to see is er… a people on the whole with very little freedom but with an oligarchy on top enjoying a considerable measure of freedom and a very high standard of living.

WALLACE: And the people down below, the ‘epsilons’ down below…

HUXLEY: Enjoying very little.

WALLACE: And you think that that kind of situation can long endure?

HUXLEY: I think it can certainly endure much longer than the situation in which everybody is kept out; I mean, they can certainly get their technological and scientific results on such a basis.

WALLACE: Well, the next time that I talk to you then, perhaps we should investigate further the possibility of the establishment of that kind of a society, where the drones work for the queen bees up above.

HUXLEY: Well, but yes, but I must say, I still believe in democracy, if we can make the best of the creative activities of the people on top plus those of the people on the bottom, so much the better.

WALLACE: Mr. Huxley, I surely thank you for spending this half hour with us, and I wish you God speed sir.

HUXLEY: Thank you.

WALLACE: Aldous Huxley finds himself these days in a peculiar and disturbing position: a quarter of a century after prophesying an authoritarian state in which people were reduced to cyphers, he can point at Soviet Russia and say, “I told you so!” The crucial question, as he sees it now, is whether the so-called Free World is shortly going to give Mr. Huxley the further dubious satisfaction of saying the same thing about us.

Stay tuned for a preview of next weeks interview. Till then, Mike Wallace. Good night.

Closing credits

Anatomy of the American Financial Crisis: How It is Turning into a Worldwide Crisis

Prof. Rodrigue Tremblay
Global Research
October 13, 2008

"The basis for optimism is sheer terror." Oscar Wilde

[After the March 2008 Bear Stears bailout] "As more firms lost access to funding, the vicious circle of forced selling, increased volatility, and higher haircuts and margin calls that was already well advanced at the time would likely have intensified. The broader economy could hardly have remained immune from such severe financial disruptions."Ben Bernanke, Fed Chairman (March 2008)

“In accounting 101 we learn that high yields equal high risk. We know the CEOs had an incentive to disregard this because they were getting huge bonuses.” David Hartzell, dean of the University of Delaware’s business college and a former vice-president of Salomon Brothers

“Intensifying solvency concerns about a number of the largest U.S.-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown.” Dominique Strauss-Kahn, Head of the IMF (October 11, 2008)

The Bush administration’s way of dealing with the ongoing financial crisis has been frantic, but probably less than adequate. In fact, tragic errors may have been made that must be remedied as quickly as possible.

The most damaging error may have been to let the global investment bank Lehman Brothers fail ($691 billion of assets at the end of 2007), on Monday September 15. This fateful date may have to be remembered in the future. This was the largest failure of an investment bank since the collapse of Drexel Burnham Lambert in 1990. In contrast, the Fed and the U.S. Treasury moved quickly in mid-March (2008) to save a similar global investment bank in distress (but half the size of Lehman), Bear Stearns, by quickly lending and guaranteeing $29 billion to the large universal J. P. Morgan Chase bank in order to absorb it. —(N.B.: Let us keep in mind that it was the collapse in June 2007 of two internal Bear Stearns hedge funds that had been heavily invested in mortgage securities that kicked off the full-fledged market panic that unfolded in August 2007, and which today has turned into a full-fledged international financial crisis).

Why was the same treatment not offered to Lehman? Possibly because of a personal lack of empathy between Treasury Secretary Henry M. Paulson Jr. (a former chief executive of rival investment bank Goldman Sacks) and Lehman’s CEO Mr. Richard S. Fuld Jr., or possibly because the Bush administration wanted to make an example that all investment banks, no matter how large, could not count on being rescued by the government. The Bush administration did not even bother to appoint a trustee to supervise Lehman’s liquidation in order to make it orderly.

Such a liquidation of a large international bank, known for its worldwide interconnections and unsound banking practices, was nearly a repeat of the mistake made in letting the large Vienna-based Creditanstalt bank fail, on May 13, 1931. This was a bank that had borrowed large amount of money in London and in New York to finance its activities. Its failure created a domino effect among other international banks that had lent to each other in the international credit chain. So much so that the failure of the Creditanstalt forced them to severely tighten their lending to absorb their sudden losses.

Seventy-seven years later, in 2008, the Bush administration’s decision to let the Lehman Brothers bank fail has produced a similar ripple effect throughout the international financial system. And, perhaps more important politically, it signaled to the markets that the Bush administration was willing to let a dangerous debt deflation and an ominous credit crunch proceed. This may turn out to have been a most tragic mistake.

Indeed, Lehman’s bankruptcy forced the global investment bank to quickly write down its huge portfolio of debt, a fair amount of it in derivative products. But since banks are creditors of each other, especially Lehman which dealt with large institutions, this had the consequence of spreading the American financial disease all over the world, and especially in Europe. Why? Because Lehman’s London office was a huge center of sale and distribution for its more or less toxic derivative products all over Europe. Indeed, many European banks had invested in Lehman’s securitized paper, and when it failed, they were left with large losses. As a consequence, they had to curtail their domestic lending and that’s the reason the credit crunch is now moving to Europe.

The second mistake was to address the “liquidity problem” of American investment and mortgage banks without tackling at the same time their underlying “solvency problem”.

As we wrote right at the very beginning, on August 24, 2007, the financial crisis in the U.S. is not only a classic “liquidity problem”, when banks find themselves short of cash to pay immediate redemptions and withdrawals while their longer term loans are secure, but also and above all a “solvency problem”, because the huge losses that banks had to absorb when they wrote down the value of their toxic assets-backed securitized paper, eroded their capital base to an extent that they became de facto insolvent. Market operators saw that and they sold the banks’ shares short and the price of these shares plummeted.

With many banks’ solvency now in doubt, inter-bank lending has nearly stopped, and because of a ‘flight to safety’, the Ted spread [the difference between three-month U.S. Treasury bills yields and yields on three month eurodollar contracts, as represented by the London Inter Bank Offered Rate, called Libor] exploded, and banks cut down their lending. Credit became tight and scarce. Because banks as a whole ordinarily lend between 10 and 12 times their capital base, the most liquid money supply (M1) began to contract in real terms. Even money market funds suffered heavy losses, and a run on them was in full swing when the Treasury stepped in a month ago to offer an emergency $50 billion guarantee.

The U.S. economy may be approaching what can be called a classic “liquidity trap” situation, wherein the Fed is lowering interest rates while lending through its discount window and printing money on a high scale, however the liquid money supply figures, in real terms, are not increasing, but are rather falling. Thus, there is no immediate inflation, but the money supply is contracting as banks reduce their lending and make a rush to T-bills (their yields nearly fell to zero). The short-term result is a net deflationary effect for the overall economy and on the stock market (although the long term bond market sees inflation ahead, and long term rates are rising). —The result is stock market crashes in repetition.

In fact, this is precisely what has happened over the last few weeks, not only in the United States, but also in the U.K and in other European countries. This is a very dangerous development for the real economy, because money data in real terms are a leading indicator of the future course of the economy. Six or nine months down the road, the consequences of the credit crunch will appear in production and employment declines, because the credit crunch has the effect of placing a serious squeeze on most companies. Since the credit contraction really began in June (2008), the early part of 2009 is bound to show severe economic weakness.

On Friday, September 19 (2008), the Bush administration announced its solution to the growing banking crisis. It made public the $700 billion Paulson plan (US Emergency Economic Stabilisation Act, EESA) that primarily focused on creating a government market for some of the bad mortgage-backed securities on the banks’ books. —But this was only half of the problem. The other half of the problem was the need to stop the money supply from declining, by restoring bank credit lending and allowing companies to have access to working capital financing. The goal here is to prevent banking problems from morphing into a general contraction of consumption and capital investment plans, thus slowing down production and raising unemployement in the coming months.

For this to happen, however, banks must be allowed to find badly needed new capital. But in a time of crisis, with stock markets declining, it is doubtful that much private capital can be found. The recent association of Warren Buffett with Goldman Sachs may be more of an exception than a rule.

When private capital is not available, the government has no other choice but to inject equity (by buying the banks’ preferred shares) into the national banking system, while taking steps to safeguard the public interest by obtaining common share warrants that can be resold profitably later, when the situation stabilizes.

In conclusion, we may ask if it is possible to avoid a repetition of the U.S. Great Depression of the 1930s or the more recent Japan’s protracted recession of the 1990s, both the result of a similar severe banking crisis? The answer is yes, if the vicious cycle of asset price decline, banking credit crunch and money supply contraction can be avoided, or, at the very least, stopped and reversed. —In economics, as in medicine, it is never too late to do the right thing.

The October Surprise: Global Panic

Stephen Lendman
Global Research
October 13, 2008

Since 9/11, the notion of an October surprise has been around. The idea going something like this. Another real or manufactured terror attack. The dominant media stokes fear. The public is again traumatized. The Bush administration pledges all effective measures to protect national security. Formerly seizes total power. Suspends the Constitution and declares martial law. Mass detentions follow. Beginning with dissenters and elements of the public considered “dangerous.”



Stocks


Today’s crisis isn’t an accident or from happenstance. It was planned.


This may be coming with the 3rd Infantry’s 1st Brigade Combat Team back in the US as of October 1. According to the Army Times, as “an on-call federal response force for natural or manmade emergencies and disasters, including terrorist attacks.” Augmented by USNORTHCOM.

According to Wayne Madsen’s recent article titled “FEMA sources confirm coming martial law,” it gets worse. He cites “knowledgeable” FEMA sources saying that “the Bush administration is putting the final touches on a plan (to declare) martial law in the US with various scenarios anticipated as triggers.” Economic collapse. Massive social unrest. Bank closures. Street protests. Violence in response, and another stolen election.

Early in the month, a different October surprise arrived. Not the expected one. Not yet at least. The Wall Street Journal put it this way: “The Dow Jones Industrial Average (DJIA) capped the worst week in its 112-year history with its most volatile day ever, as hopes for a major international bank rescue plan were overwhelmed at day’s end by another wave of selling.”

The DJIA dropped 22% over the past eight trading sessions. Investors were “shell-shocked.” Many spent Friday “trying to protect themselves from further declines. The past week’s (October 6 - 10) 18% decline “and Friday’s 1018.77 point swing from low to high were the biggest since the Dow was created in 1896.” The VIX measure of market fear hit 69.95. By far its highest level ever, and some investors think it may touch 100 in the current climate. Until now, the Dow’s worst week was in 1933. Trading volume also set a record at 11.16 billion shares.

“Market crash shakes world” headlined the Financial Times (FT). Mass trauma, fear and uncertainty sent tremors everywhere, and no one knows if Friday ended it. Maybe just began it. First markets crater. Then world economies, and finally the inevitable human fallout. Affecting many tens of millions everywhere. Innocent people paying dearly.

Morning headlines say it all. And they’re getting grimmer. On October 10, the Wall Street Journal said the “Market’s 7-Day Rout Leaves US Reeling. Stocks in a Slow-Motion Crash….After Year of Declines, Investors Lose $8.4 Trillion of Wealth.” Most scary is what’s ahead and how much more people can or will tolerate.

The Financial Times was just as grim headlining “Global equities plunge….Japan leads Asian market rout…Wall Street in biggest fall since 1987 crash.” Once the nation’s largest company, General Motors may now face bankruptcy. Its October 10 stock fell to its 1950 valuation and now has a market capitalization of just $2.6 billion. Shockingly expressed in one headline saying “Wheels falling off for General Motors.” Add the engine and chassis, too.

Ford Motor’s outlook is little better. Its stock price is the lowest in decades, and one analyst warned that “the accelerating deterioration in industry fundamentals will be a serious challenge to liquidity (for both companies and Chrysler) during 2009.” JD Power and Associates was even grimmer saying that the global auto market may experience an “outright collapse” in 2009. And we’re only talking about autos.

Look at banks and world finance. The source of today’s crisis and reason global economies are reeling. Economists like Nouriel Roubini were once scoffed at. No longer. He warned for months that “the risk of a total systemic meltdown is now as high as ever since the credit crunch is gripping European banks as well” and spreading globally. Affecting good ones as well as bad. Trashing the baby with the bath water. Erasing savings for tens of millions everywhere. And for seniors who may not have time to recoup.

The crisis didn’t emerge like Topsy. It’s been simmering for years, and in July 2006 historian Gabriel Kolko warned about it in an article titled “Bankers Fear World Economic Meltdown.” He noted how:

the “whole nature of the global finance system has changed radically in ways that have nothing whatsoever to do with ‘virtuous’ national economic policies….The investment managers of private equity funds and major banks have displaced national banks….moving well beyond regulatory structures….Traders have taken over from traditional bankers because buying and selling shares, bonds, derivatives and the like now generate the greater profits, and taking more and higher risks is now the rule….They often bet with house money (and) low interest rates….let them do things….that were once deemed foolhardy.”

Compounded by the irrational development of global finance, liberalization and loose regulations. Playing fast and loose and betting on the come. The potential gains are enormous and so are the risks of a major financial crisis. A meltdown. Now we’ve got one that global institutions are “utterly inadequate” to deal with.

Kolko warned then that “the entire global financial structure (was) becoming uncontrollable….financial liberalization produced a monster….contradictions wrack the world’s financial system (that’s) both crisis-prone (and) immoral. (We) may very well be on the verge of serious crises.” Now we’ve got one and in dire straits.

Because “a kleptocratic class (took) over the economy,” according to economist Michael Hudson. A criminal element betting on high returns through computerized gambling “and when bad bets are made, bailouts are the (payoff) for campaign contributions.” For having friends in high places as well.

Today’s crisis isn’t an accident or from happenstance. It was planned, according to economist and critic F. William Engdahl in his recent article titled “Behind the Panic.” To “shape the future of global banking” through creative destruction. Panic incited by a well-designed “long-term strategy.” To change the “face of European banking.” Weaken it with toxic junk. Asset Backed Securities. Force enough of it into liquidation or cheap enough to buy at fire sale valuations. The idea being to “create three colossal global financial giants - Citigroup, JP Morgan Chase, and Goldman Sachs.” Add Bank of America and make it a foursome. Then use their “muscle to ravage European banks.” Even if they wreck the US and world economies. Resuscitate them so they can “advance their global agenda over the coming years.” To dominate world finance and increase US hegemony in the new century.

That’s the scheme, and Engdahl calls it “a fight for the survival of the American Century.” Built on “the twin pillars of American financial (and military) dominance,” but the game is far from over. “Battle lines are drawn.” EU nations have their own ideas. Stabilization and recovery plans as well that differ from Washington’s and look much sounder. It remains to be seen where things are heading and whether competing nations can work together and do it effectively. They haven’t much time.

Washington’s Efforts to Shape the Last Century

Engdahl recounted some of them in his important book on war, geopolitics, oil and finance: “A Century of War.” He explained how Washington designed “the greatest confidence game” ever. A “special hegemony” to:

– print limitless amounts of dollars;

– accumulate huge trade deficits;

– “inflate (the) currency beyond imagination;”

– have the government pay bankers interest on its own money; and

– create an unprecedented public and private debt to enrich the few at the expense of the many.

Up to now it worked. Let America rule the world. Control its energy and finance. Avoid serious challengers and crush potential ones.

From the early years of the last century, US muscle flexing took many forms. From conflicts to geopolitics to controlling world resources to financial warfare. JP Morgan and other Wall Street notables were experts on the latter. Creating panics for greater power. Like today’s with similar aims.

In 1969, Richard Nixon had his own scheme with the country in recession. Interest rates were cut. Dollars flowed abroad. The money supply was expanded, and in May 1971 America recorded its first monthly trade deficit. It triggered a panic US dollar sell-off. Gold backed the currency then. Reserves were one-quarter of official liabilities, and (on August 15) Nixon unilaterally imposed a 90-day wage and price freeze. A 10% import surcharge. An 8% currency devaluation, and he closed the gold window. Suspended dollar convertibility into the metal and ended compliance with Bretton Woods’ core provision. He pulled the plug on world economies. Shook them and on February 12, 1973 did again. With a further 10% dollar devaluation that created the worst global instability since the 1930s. What lay behind his actions?

To buy time ahead of a bold new monetary “paradigm shift.” To revive a strong dollar and US hegemony. By a “colossal assault” on world industrial growth. Through an engineered oil embargo. A 400% increase in oil prices. A flood of petrodollars to be recycled into US investments and purchases. Big Oil and major banks to profit hugely at the cost of economic crisis. The worst since the 1930s. Causing bankruptcies, unemployment and stagflation.

Under Jimmy Carter in 1979, Fed chairman Paul Volker advanced his own radical monetary policy on the pretext of fighting high inflation. It was another Washington scheme to preserve dollar hegemony. Keep it the world’s reserve currency, and do it by crushing industrial growth to let political and financial power prop up dollar strength.

It worked by raising interest rates from 10% to 16% and then 20% in weeks. The US and world economies plunged into deep recessions, and the dollar began a strong five year ascent.

In the 1980s under Ronald Reagan, Mexican president Jose Lopez Portillo wanted to use his oil revenue to modernize and industrialize the country. To make it stronger and more independent. That prospect was anathema to Washington and it reacted. With a scheme to demand rigid repayment of Mexican debt at exorbitant rates.

In 1981, it began with an orchestrated run on the peso. Stories were circulated about an impending devaluation and capital flight. Portillo instituted an austerity plan, and his government cracked under pressure. The peso was devalued 30%. Mexican industry was devastated. Industrial production cut. Bankruptcies followed. Millions of Mexicans suffered grievously. The nation became effectively insolvent. It had to accept IMF help. Took on large amounts of debt, and major banks profited hugely by working with the government and IMF. Socializing the debt. Spinning it off to tax payers and privatizing gains through structural adjustment looting. Similarly in other countries. Causing mounting debt. Charging onerous interest rates, and earning greater profits from hundreds of billions of dollars in servicing costs.

Reagan-era deregulation caused the S & L crisis. A lesser version of today’s. By letting banks invest in speculative real estate. Engage in massive fraud. And get the right wing Cato Institute to say: “If Congress had set out in 1980 to create an environment that would lure all the crooks and frauds in the country into one industry, few would have been more suitable than” this one. “It was easy (finding) disenchanged S & L owners who were willing to sell out for a reasonable price, and once one had an S & L charter, opportunities abounded.”

It ended up bankrupting hundreds of banks. Shrunk the industry from 4500 in 1979 to about 2200 in 1991 and hundreds more afterward. It also cost taxpayers around $200 billion. Pocket change compared to the trillions needed for the current crisis.

In the 1980s, Japan was the country that could say “no.” At decade’s end, it was the world’s economic and banking leader. Because reckless speculation left American banks in deep crisis. Japan operated more prudently. It prospered, and challenged American dominance. Washington feared former communist countries would adopt its model. This was anathema. It might shut out US companies. Show Japan’s way was superior so it had to be stopped.

The 1985 Plaza accord was the scheme. To get Japan to exercise monetary and fiscal measures to expand domestic demand and reduce the country’s external surplus. At the same time, the Bank of Japan held interest rates at 2.5% from 1987 - 1989. To stimulate US goods purchases. Instead cheap money went into Japanese stocks and real estate. It created two colossal bubbles. A lost decade followed, and the economy is still recovering and under new duress from the current panic.

The 1990s Asian crisis was also manufactured. In summer 1997, it hit. For no apparent reason beyond rumors that the Thai baht was in trouble, and Thailand had too few dollars to back it. “Asian Contagion” was unleashed. Hot money came in earlier. Then exited electronically. From Thailand, Indonesia, South Korea, the Philippines, and other Asian Tiger countries. Through a Washington-engineered scheme because these nations’ economic model bested America’s and threatened it.

Tiger countries grew by protecting their markets and barring foreign companies from owning land and national firms. They also restricted Western and Japanese imports to grow their own economies and homegrown industries. Again anathema so it had to be stopped.

The countries were hammered. Forced to devalue their currencies and get IMF help. With strings. Accepting debt bondage. Opening their markets. Structural adjustments. Privatizations. Spending cuts. Mass layoffs and constrained wages and benefits. The whole toxic package in return for aid. The regional toll was devastating. An estimated 24 million lost jobs. Its growing middle class destroyed. A black hole of misery for around 20 million people. Forcing them to do anything to survive. Crushing the Asian miracle to let Western brands replace local ones. Bargain hunters get great deals at fire sale prices. The New York Times called it “the world’s biggest going-out-of-business sale.” The region now hammered again from the current crisis. No secret where it was manufactured. No telling how it will end up. No guessing many millions feel pain and are fearful.

No end to other notable examples. Two especially stand out. The 1990s ones affecting post-Soviet Russia and South Africa. In each case, neoliberal “shock therapy” was devastating. It empowered an oligarch class in Russia. Let them strip mine the nation’s wealth and offshore it to tax havens. Impoverished tens of millions of people. Bankrupted 80% of farmers. Caused mass unemployment. Created a permanent underclass. An annual 700,000 a year population decline and much more.

South Africa fared no better. Despite Nelson Mandela’s pledge to support black economic empowerment. As president he surrendered to capital. The consequences were horrific. Far worse than under apartheid. Double the unemployment rate and number of people in desperate poverty. Millions of poor blacks without homes. Another million evicted from farms. One-fourth of the population with no running water or electricity. Around 60% with inadequate sanitation. A 13 year life expectancy decline since 1990. Appalling human wreckage much like what happened in Russia and elsewhere. To empower capital at the expense of people. Heading for America and in one week took a quantum leap.

Spreading everywhere. On October 2, enough for The New York Times to say that Latin American leaders have gone from “schadenfreude to fear(ful).” Hugo Chavez skipped the UN General Assembly opening to visit China and said Beijing is more relevant than New York. Venezuela and Bolivia expelled their US ambassadors, and Brazil’s Lula da Silva railed against an American regional naval presence and said his nation’s warships must be on alert in response. He’s also furious at Wall Street and Washington for the current crisis and said: “We did what we were supposed to do to get our house in order. They spent years telling us what to do and they themselves didn’t do it.”

Argentina’s Christina Fernandez de Kirchner was also bitter in stating: “We are witnessing the First World, which at one point had been painted as a mecca we should strive to reach, popping like a bubble.” And the Chicago Tribune quoted an Inter-American Dialogue expert saying that “whatever credibility the US had in the region, on economic management, that’s clearly gone.”

Forty world specialists from 20 countries attended the International Conference of Political Economy in Caracas, Venezuela from October 8 - 11. To analyze and propose South-based, alternative solutions to the financial crisis. Venezuela’s Minister for Planning and Development, Haiman El Troudi, highlighted his country’s relative strength. Its impressive economic growth (at 6% in first half 2008), and recommended that Venezuelans repatriate their US investments given the current climate. To protect them from unsafe American banks.

He and President Chavez also criticized the IMF and called for it to “dissolve….kill itself.” They were harsh on the World Bank as well. Chavez added that “We are decoupling from the wagon of death.” El Troudi said we are witnessing the end of neoliberal hegemony. Others agreed that a new model is needed. The old one clearly failed.

The Current Panic and Meltdown

Credit today is frozen. From a debt crisis, not a liquidity one. Markets are reeling as a result. Crashing in free fall from severe financial stress. From the largest ever leveraged asset and credit bubbles. Multiple ones. Imploding. Starting with housing. Causing widespread mortgage defaults and huge financial institution losses. Multi-trillions more asset dollars at risk. Compounded by banks reluctant to lend. Fearing they won’t be repaid. Prices are falling. Trust is eroded. Losses mounting from destructive deleveraging. Mortgages, stocks, bonds, commodities, credit, private equity, hedge funds imploding more intensively than since the Great Depression.

Forcing troubled companies to the wall. Each one exposing others. Some too big to fail but they did. Getting investors to run for the exits. Selling good assets to cover bad ones. Freezing up money markets. Making short-term Treasuries the only safe bet. Getting world governments scrambling for solutions. Already in recession and getting worse. Fearing an intensified financial crisis. A systemic collapse.Turning a deepening recession into a global depression. A disaster only urgent, well-designed, and coordinated actions may prevent. But no assurance anything will work this late.

Here’s what Nouriel Roubini and others recommend. Mirror opposite of EESA that will do more harm than good:

– additional rapid rate cuts globally; at least to 1% in America; much lower in the EU, Asia and elsewhere;

– guarantee all deposits until stability is restored at least;

– partially nationalize troubled banks; recapitalize them with public funds; in some form that now seems the plan according to The New York Times in its October 11 article headlined: “White House Overhauling Rescue Plan;” capital to be injected into banks by buying non-voting shares; what’s known is Henry Paulson’s October 10 statement that “We can use the taxpayer’s money more effectively….if we develop a standardized program to buy equity in financial institutions;” it remains to be seen what, in fact, happens; Paulson represents Wall Street; not the public, national or world interests;

– he’s not for reestablishing responsible regulation to curb market excesses; what economists like Roubini recommend;

– freeze all home foreclosures; establish a 1930s type Home Owners’ Loan Corporation (HOLC) to refinance homes and prevent foreclosures; let foreclosed homeowners retain their properties and pay affordable rent;

– ease the debt burden of distressed households; cap credit card and other high consumer loan interest rates at much lower levels; put cash in peoples’ hands; lots of it; at least several hundred billion dollars for starters; more if needed; as much as it takes;

– provide solvent financial institutions with as much liquidity as they need; corporate sector companies as well, including small businesses;

– save solvent companies; liquidate troubled ones too far gone;

– fund massive stimulus to revive the economy; for public works, infrastructure, education, alternative energy, unemployment benefits, job training, tax rebates to the needy, and state and local governments strapped for cash; money for what’s needed most and that can do the most good;

– get stronger, more solvent countries to help weaker, more indebted ones; and

– move on these policies fast; world governments have little time left to save themselves; there’s no assurance they can; and these measure don’t address our destructive military Keynsianism; permanent war economy and need to redirect those funds for constructive homeland needs; mirror opposite of a reported a new Pentagon document requesting an additional $450 billion over the next five years.

Reeling from One Policy Response to Another

First came EESA. The Emergency Economic Stabilization Act. To reward fraudsters and not address the root of the crisis. Nor help millions of troubled households. Homeowners in foreclosure. Others threatened. The public traumatized by the most calamitous economic events since the 1930s.

Europeans formed their own plans. Different from Washington’s. On October 10, G-7 finance ministers met to discuss policy. In early evening, they presented an action plan. Long on promises. Short on specifics. The New York Times reported that: “Many investors had hoped the ministers would (propose) more concrete steps” and quoted Peterson Institute of International Economics deputy director, Adam Posen, saying: “This fell short.” But he wasn’t giving up entirely or saying what they have in mind or will later decide can’t work.

They agreed to:

– act decisively with all available tools to support financial institutions and prevent their failure;

– unfreeze credit and money markets; assure banks and other financial institutions “have broad access to liquidity and funding;”

– ensure banks and financial intermediaries “can raise (sufficient) capital from public (and) private sources;” to rebuild confidence and get them again lending to households and businesses;

– ensure national deposit insurance protection is sound so people have confidence in the safety of their deposits; and

– take appropriate action “to restart the secondary markets for mortgages and other securitized assets;” assure accurate valuations and transparency according to “high quality accounting standards.”

Besides the US Treasury planning to “buy equity in financial institutions,” AP reported on October 12 that the 15 euro-zone countries will “temporarily guarantee future bank debt to encourage lending….for an interim period and on appropriate terms” for up to five years. Recapitalizing banks is part of the plan. The hope is to unfreeze credit and get markets operating normally again.

According to The New York Times on October 12, “each country will announce concrete figures for the measures they expect to take individually.” Belgian finance minister Didier Reynders said “There is no question of setting up a European fund.” A final proposal will be presented to the full 27-member EU summit later in the week, and individual parliaments will have to vote on it.

Key to understand about whatever emerges in final details or any that follow - world governments will loot their treasuries to save powerful capital interests. Despite bold pronouncements we can expect more of ahead, practically nothing will be done for many tens of millions of people globally in greatest need. At best for them….crumbs.

In the coming days and weeks, we’ll see statements become policies and how world markets react. Given the immensity of the crisis, no one’s sure if anything can work. Nor is it reassuring to hear George Bush say remain calm. We’ve got things under control. On October 10, the Dow dropped 300 points while he spoke.

In an October 13 Barron’s interview, noted money manager Jeremy Grantham (now age 70) was asked if he thought we’d learn anything from the current crisis. His response: “an enormous amount in a very short time, quite a bit in the medium-term, and absolutely nothing in the long-term.”

He’s been bearish since last year but added that “the fundamentals are turning out worse than” he expected. “The terrible thing - after all this pain - is that the US equity market is not even cheap.” It was so high in 2000 that it hasn’t come down to trend, but it’s getting close. However, “the really bad news is that great bubbles in history always overcorrect.” He believes S & P 500 fair value is around 1025 compared to its 899.22 October 10 close. But “typically bubbles overcorrect by quite a bit, possibly by 20%. This is very discouraging,” so he’s not rushing to buy but he fears he’ll act too soon. He predicts a market low in 2010.

Where he sees things going from here was also posed. He’s highly respected as an expert, and yet he emphasized “how little (he) understand(s about) all of the intricate workings of the global financial system. (He) hopes that someone else gets it, because (he) doesn’t. And (he) has no idea, really, how this will work out….(It’s) so intricate that all (he) can conclude, by instinct (and from history), is that it will be longer, harder and more complicated than we expect.” Quite an assessment from a man called “the philosopher king of Wall Street.”

The Human Cost of Manufactured Crisis

Ordinary people are hit hardest. Millions will suffer grievously for years as a result of this totally avoidable crisis. Fraudsters who caused it are rewarded. Innocent homeowners, households, and workers are punished. Mercilessly. The result:

– trillions of dollars lost; likely trillions more ahead;

– millions of lost homes, homeowners behind in their payments, or threatened with foreclosure in the worst housing crisis since the Great Depression; ultimately may exceed it given current estimates of up to 10 million foreclosures before stability and recovery;

– likely well over a million 2008 personal bankruptcies and much higher numbers in 2009 compared to 800,000 in 2007 and 573,000 in 2006; figures below the 2000 - 2005 1.5 million average before passage of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act; according to Samuel Gerdano, American Bankruptcy Institute director, consumer over-indebtedness “made worse by the home mortgage crisis” is the problem; it won’t likely recede in the near or intermediate-term;

– rising unemployment; not the spurious 6.1%; including discouraged workers and people working part-time who want (but can’t find) full-time jobs, economist John Williams puts the real figure above 12% and rising;

– consumer over-indebtedness; maxed out on credit but needing more of it to survive; and charged usurious rates to get it;

– declining wages and benefits in the face of soaring expenses; making it all the harder to cope;

– food banks and homeless shelters facing increasing demands but forced to turn away people for lack of resources; and

– things overall are worsening; to the edge of the abyss according to some; even the most optimistic fear what’s coming; who can know; no one dares be complacent.

Whatever final policies emerge. In whatever form they take. Unless they address the human dimension, they’ll do nothing for people in most need. Growing millions. Desperate and in trouble. Their issue is economic and ethical. The G-7 statement addressed neither. It dealt only with saving Wall Street. Industrial capitalism. A better idea is let them die and replace them with a new order. A workable one. Respecting people, not capital.