More War! The Road to Armageddon

August 11, 2011 by · Leave a Comment 

By Paul Craig Roberts

[Paul Craig Roberts was an editor of the Wall Street Journal and an Assistant Secretary of the U.S. Treasury.  His latest book, HOW THE ECONOMY WAS LOST, was published by CounterPunch/AK Press. This article is from the Summer 2011 issue of the Trends Journal, a publication of Gerald Celente’s Trends Research Institute.]

As the second decade of the 21st century began, the US economy had not recovered from the Great Recession that began in December 2007.

The economy’s failure to recover was despite the largest fiscal and monetary stimulus in the country’s history. There was a $700 billion bank bailout, a $700 billion stimulus program, a couple of trillion in “quantitative easing,” that is, in debt monetization or the printing of money to finance the government’s expenditures. In addition the Federal Reserve’s balance sheet had expanded by trillions of dollars as the Fed purchased troubled mortgage bonds and derivatives in its effort to keep the financial system solvent and functioning. According to the Government Accountability Office’s audit of the Federal Reserve released by Senator Bernie Sanders, the Federal Reserve provided secret loans to US and foreign banks totaling $16.1 trillion, a sum larger than US Gross Domestic Product (GDP).
Despite the enormous fiscal and monetary stimulus, the economy remained dead in the water.

In 2011 the deficit in the federal government’s annual expenditures was 43 percent of the budget. In other words, the US government had to borrow, or the Fed had to monetize, 43 percent of federal expenditures during fiscal year 2011. Despite this unprecedented fiscal and monetary stimulus, the economy did not recover.

At the end of the first decade of the 21st century, the economy’s decline was temporarily halted by federal subsidies for car and home purchases. The $8,000 housing subsidy helped newlyweds purchase starter homes as the subsidy was a big chunk of the down payment in a depressed housing market. The car purchase subsidy moved future demand into the present. When these subsidies expired, the economy’s life support was turned off.

Problems with the statistical reporting of unemployment, inflation, and GDP disguised the worsening economy. Seasonal adjustments used to smooth the data over the course of the year were not designed for prolonged recession. Neither was the “birth-death” model used by the US Bureau of Labor Statistics (BLS) to estimate non-reported jobs from new start-up companies and losses from companies that have gone out of business. The birth-death model was designed for a growing economy and during downturns overestimates the number of new jobs created.

The “substitution effect” used in the consumer price index (CPI) underestimates inflation by assuming that consumers substitute cheaper foods for those that rise in price. For example, if the price of New York strip steak rises, this does not show up in the CPI, because of the assumption that people shift their purchases to a less expensive cut such as round steak.

Cooking the Books

The widely used “core inflation” measure does not include food or energy. Core inflation is a useful measure for those who want to put an optimistic spin on the outlook.

By underestimating inflation, the government can overestimate real GDP growth, thus creating a fictional rosy outlook. Similarly, by using the employment measure known as U.3, the government underestimates unemployment.

The “headline” unemployment rate, the one emphasized by the media and the financial press, stood at 9.2 percent in June, 2011. But this rate does not include any discouraged workers. A discouraged worker is a person who has ceased looking for a job, because there are no jobs to be found. A discouraged worker is not considered to be in the work force and is not counted among the U.3 unemployed. The federal government knows that this is phony and has a U.6 measure of unemployment that counts the short-term discouraged. This measure, seldom reported by the media, stood at 16.2 percent in June, 2011.

Statistician John Williams (shadowstats.com) continues to count also the long-term discouraged workers according to the way it was officially done in 1980. In June, 2011, this full measure of the US unemployment rate was 22.7 percent.

In other words, by 2011 between one-fifth and one-fourth of the US work force were without jobs.

As 2011 progressed, the United States faced three simultaneous economic crises. One crisis arose from the loss of US jobs, GDP, consumer income, and tax base caused by corporations off-shoring their production for the US market. Instead of making their products at home with American labor and providing Americans with jobs and states and localities with tax revenues, US corporations provided countries such as China, India, and Indonesia with GDP, jobs, consumer income and a tax base. This practice meant that economic stimulus was unable to revive the US economy as Americans cannot be called back to work jobs that have been moved abroad.

Another crisis was the financial crisis resulting from deregulation, fraud, and greed. Securitization of mortgages meant that issuers of mortgages no longer had any incentive to ascertain the credit worthiness of the borrower, because the issuers sold the mortgages to third parties who combined the mortgages with others and sold them to investors.

As mortgages were issued for fees, the more mortgages issued, the higher the income from fees. In order to collect fee income, some issuers faked credit reports for borrowers. With the housing market booming, many people took mortgages in order to make money on the resale of the properties. With housing prices rising rapidly, down payments and credit worthiness became concerns of the past. The financial crisis was made worse by the ability of investment banks to get around capital requirements and, thereby, leverage their equity by incurring enormous debt. When all the bubbles burst, the house of cards collapsed.

Economic Armageddon

The third crisis was the $1.5+ trillion annual federal budget deficits, which were too large to be financed without the Federal Reserve buying the Treasury’s new debt issues. Known as monetizing debt, the Federal Reserve purchased the Treasury’s bills, notes, and bonds by creating a checking account, which the Treasury would then draw upon to pay the government’s bills. The outpouring of Treasury debt raised concerns about the dollar’s exchange value and role as reserve currency, and it raised fears of inflation. Gold and silver prices rose as the dollar declined in foreign exchange markets.

Any one of these crises was serious. All together, they implied economic Armageddon.

There was no obvious way out, but even if one could be found, the government was focused elsewhere — on wars.

In addition to ongoing military operations in Iraq, Afghanistan, Pakistan, Yemen and Somalia, the US and NATO began military operations against Libya on March 19, 2011. As with the existing wars, the real purpose of the aggression against Libya was not acknowledged, but it became clear that the war’s purpose was to evict China from its oil investments in eastern Libya. Unlike the previous Arab protests, the Libyan rebellion was an armed uprising in which some saw the CIA’s hand.

The Libyan war upped the risk, because although hiding behind the veil of Arab protest, the US was actually confronting China. Similarly, in the US-supported armed rebellion in Syria, Washington’s target was the Russian naval base at Tartus. Overthrowing the Assad government in Syria and installing a US friendly regime would put paid to Russia’s naval presence in the Mediterranean.

By hiding its purposes behind Arab protests in Libya and Syria that it might have initiated, Washington avoided face-to-face conflicts with China and Russia, but nevertheless the two powers understood that Washington was striking at their interests. This elevated the recklessness of Washington’s aggressive policies by initiating confrontation with two nuclear powers, one of which held financial power over the US as America’s largest foreign creditor.

China’s oil investments in Angola and Nigeria were another target. To counter China’s economic penetration of Africa, the US created the American African Command in the closing years of the first decade of the 21st century. Disturbed by China’s rise, the US undertook to prevent China from having independent sources of energy. The great game that in the past has always led to war is being played out once again.

September 11, 2001, provided Washington with a new “threat” to replace the Soviet threat, which had expired in 1991. Despite the absence of the Soviet threat, the military/security budget had been kept alive for a decade. September 11, 2001, injected rapid growth into the military/security budget. A decade later the budget stood at approximately $1.1 trillion annually, or approximately 70 percent of the federal deficit which was crippling the dollar and threatening the US Treasury’s credit rating.

Focused on Middle Eastern wars, Washington was losing the war for the US economy.

As the expectation of economic recovery evaporated over the course of 2011, the need for war became more imperative.

13-33

The Enemy is Washington: An Economy Destroyed

July 28, 2011 by · Leave a Comment 

By Paul Craig Roberts

Recently, the bond rating agencies that gave junk derivatives triple-A ratings threatened to downgrade US Treasury bonds if the White House and Congress did not reach a deficit reduction deal and debt ceiling increase.  The downgrade threat is not credible, and neither is the default threat.  Both are make-believe crises that are being hyped in order to force cutbacks in Medicare, Medicaid, and Social Security.

If the rating agencies downgraded Treasuries, the company executives would be arrested for the fraudulent ratings that they gave to the junk that Wall Street peddled to the rest of the world. The companies would be destroyed and their ratings discredited. The US government will never default on its bonds, because the bonds, unlike those of Greece, Spain, and Ireland, are payable in its own currency. Regardless of whether the debt ceiling is raised, the Federal Reserve will continue to purchase the Treasury’s debt.  If Goldman Sachs is too big to fail, then so is the US government.

There is no budget focus on the illegal wars and military occupations that the US government has underway in at least six countries or the 66-year old US occupations of Japan and Germany and the ring of military bases being constructed around Russia.

The total military/security budget is in the vicinity of $1.1-$1.2 trillion, or 70 per cent -75 per cent of the federal budget deficit.

In contrast, Social Security is solvent.  Medicare expenditures are coming close to exceeding the 2.3 per cent payroll tax that funds Medicare, but it is dishonest for politicians and pundits to blame the US budget deficit on “entitlement programs.”

Entitlements are funded with a payroll tax.  Wars are not funded. The criminal Bush regime lied to Americans and claimed that the Iraq war would only cost $70 billion at the most and would be paid for with Iraq oil revenues. When Bush’s chief economic advisor, Larry Lindsay, said the Iraq invasion would cost $200 billion, Bush fired him. In fact, Lindsay was off by a factor of 20. Economic and budget experts have calculated that the Iraq and Afghanistan wars have consumed $4,000 billion in out-of-pocket and already incurred future costs.  In other words, the ongoing wars and occupations have already eaten up the $4 trillion by which Obama hopes to cut federal spending over the next ten years. Bomb now, pay later.

As taxing the rich is not part of the political solution, the focus is on rewarding the insurance companies by privatizing Medicare at some future date with government subsidized insurance premiums, by capping Medicaid, and by loading the diminishing middle class with additional Social Security tax.

Washington’s priorities and those of its presstitutes could not be clearer. President Obama, like George W. Bush before him, both parties in Congress, the print and TV media, and National Public Radio have made it clear that war is a far more important priority than health care and old age pensions for Americans.

The American people and their wants and needs are not represented in Washington. Washington serves powerful interest groups, such as the military/security complex, Wall Street and the banksters, agribusiness, the oil companies, the insurance companies, pharmaceuticals, and the mining and timber industries. 

Washington endows these interests with excess profits by committing war crimes and terrorizing foreign populations with bombs, drones, and invasions, by deregulating the financial sector and bailing it out of its greed-driven mistakes after it has stolen Americans’ pensions, homes, and jobs, by refusing to protect the land, air, water, oceans and wildlife from polluters and despoilers, and by constructing a health care system with the highest costs and highest profits in the world.

The way to reduce health care costs is to take out gobs of costs and profits with a single payer system.  A private health care system can continue to operate alongside for those who can afford it.
The way to get the budget under control is to stop the gratuitous hegemonic wars, wars that will end in a nuclear confrontation.

The US economy is in a deepening recession from which recovery is not possible, because American middle class jobs in manufacturing and professional services have been offshored and given to foreigners.  US GDP, consumer purchasing power, and tax base have been handed over to China, India, and Indonesia in order that Wall Street, shareholders, and corporate CEOs can earn more.
When the goods and services produced offshore come back into America, they arrive as imports. The trade balance worsens, the US dollar declines further in exchange value, and prices rise for Americans, whose incomes are stagnant or falling.

This is economic destruction. It always occurs when an oligarchy seizes control of a government. The short-run profits of the powerful are maximized at the expense of the viability of the economy.
The US economy is driven by consumer demand, but with 22.3 per cent unemployment, stagnant and declining wages and salaries, and consumer debt burdens so high that consumers cannot borrow to spend, there is nothing to drive the economy.

Washington’s response to this dilemma is to increase the austerity! 

Cutting back Medicare, Medicaid, and Social Security, forcing down wages by destroying unions and offshoring jobs (which results in a labor surplus and lower wages), and driving up the prices of food and energy by depreciating the dollar further erodes consumer purchasing power.  The Federal Reserve can print money to rescue the crooked financial institutions, but it cannot rescue the American consumer.

As a final point, confront the fact that you are even lied to about “deficit reduction.”  Even if Obama gets his $4 trillion “deficit reduction” over the next decade, it does not mean that the current national debt will be $4 trillion less than it currently is.  The “reduction” merely means that the growth in the national debt will be $4 trillion less than otherwise.  Regardless of any “deficit reduction,” the national debt ten years from now will be much higher than it presently is.

Paul Craig Roberts was Assistant Secretary of the US Treasury, Associate Editor of the Wall Street Journal, and professor of economics in six universities. His latest book, HOW THE ECONOMY WAS LOST, was published by CounterPunch/AK Press. He can be reached at: PaulCraigRoberts@yahoo.com/Counter punch.

13-31

Conspiracy Theory

June 23, 2011 by · Leave a Comment 

By Paul Craig Roberts

While we were not watching, conspiracy theory has undergone Orwellian redefinition.

A “conspiracy theory” no longer means an event explained by a conspiracy. Instead, it now means any explanation, or even a fact, that is out of step with the government’s explanation and that of its media pimps.

For example, online news broadcasts of RT have been equated with conspiracy theories by the New York Times simply because RT reports news and opinions that the New York Times does not report and the US government does not endorse.

In other words, as truth becomes uncomfortable for government and its Ministry of Propaganda, truth is redefined as conspiracy theory, by which is meant an absurd and laughable explanation that we should ignore.

When piles of carefully researched books, released government documents, and testimony of eye witnesses made it clear that Oswald was not President John F. Kennedy’s assassin, the voluminous research, government documents, and verified testimony was dismissed as “conspiracy theory.”

In other words, the truth of the event was unacceptable to the authorities and to the Ministry of Propaganda that represents the interests of authorities.

The purest example of how Americans are shielded from truth is the media’s (including many Internet sites’) response to the large number of professionals who find the official explanation of September 11, 2001, inconsistent with everything they, as experts, know about physics, chemistry, structural engineering, architecture, fires, structural damage, the piloting of airplanes, the security procedures of the United States, NORAD’s capabilities, air traffic control, airport security, and other matters. These experts, numbering in the thousands, have been shouted down by know-nothings in the media who brand the experts as “conspiracy theorists.”

This despite the fact that the official explanation endorsed by the official media is the most extravagant conspiracy theory in human history.

Let’s take a minute to re-acquaint ourselves with the official explanation, which is not regarded as a conspiracy theory despite the fact that it comprises an amazing conspiracy. The official truth is that a handful of young Muslim Arabs who could not fly airplanes, mainly Saudi Arabians who came neither from Iraq nor from Afghanistan, outwitted not only the CIA and the FBI, but also all 16 US intelligence agencies and all intelligence agencies of US allies including Israel’s Mossad, which is believed to have penetrated every terrorist organization and which carries out assassinations of those whom Mossad marks as terrorists.

In addition to outwitting every intelligence agency of the United States and its allies, the handful of young Saudi Arabians outwitted the National Security Council, the State Department, NORAD, airport security four times in the same hour on the same morning, air traffic control, caused the US Air Force to be unable to launch interceptor aircraft, and caused three well-built steel-structured buildings, including one not hit by an airplane, to fail suddenly in a few seconds as a result of limited structural damage and small, short-lived, low-temperature fires that burned on a few floors.

The Saudi terrorists were even able to confound the laws of physics and cause WTC building seven to collapse at free fall speed for several seconds, a physical impossibility in the absence of explosives used in controlled demolition.

The story that the government and the media have told us amounts to a gigantic conspiracy, really a script for a James Bond film. Yet, anyone who doubts this improbable conspiracy theory is defined into irrelevance by the obedient media.

Anyone who believes an architect, structural engineer, or demolition expert who says that the videos show that the buildings are blowing up, not falling down, anyone who believes a Ph.D. physicist who says that the official explanation is inconsistent with known laws of physics, anyone who believes expert pilots who testify that non-pilots or poorly-qualified pilots cannot fly airplanes in such maneuvers, anyone who believes the 100 or more first responders who testify that they not only heard explosions in the towers but personally experienced explosions, anyone who believes University of Copenhagen nano-chemist Niels Harrit who reports finding unreacted nano-thermite in dust samples from the WTC towers, anyone who is convinced by experts instead of by propaganda is dismissed as a kook.

In America today, and increasingly throughout the Western world, actual facts and true explanations have been relegated to the realm of kookiness. Only people who believe lies are socially approved and accepted as patriotic citizens.

Indeed, a writer or newscaster is not even permitted to report the findings of 9/11 skeptics. In other words, simply to report Professor Harrit’s findings now means that you endorse them or agree with them.

Everyone in the US print and TV media knows that he/she will be instantly fired if they report Harrit’s findings, even with a laugh.

Thus, although Harrit has reported his findings on European television and has lectured widely on his findings in Canadian universities, the fact that he and the international scientific research team that he led found unreacted nano-thermite in the WTC dust and have offered samples to other scientists to examine has to my knowledge never been reported in the American media.

Even Internet sites on which I am among the readers’ favorites will not allow me to report on Harrit’s findings.

As I reported earlier, I myself had experience with a Huffington Post reporter who was keen to interview a Reagan presidential appointee who was in disagreement with the Republican wars in the Middle East. After he published the interview that I provided at his request, he was terrified to learn that I had reported findings of 9/11 investigators.

To protect his career, he quickly inserted on the online interview that my views on the Iraq and Afghanistan invasions could be dismissed as I had reported unacceptable findings about 9/11.

The unwillingness or inability to entertain any view of 9/11 different  from the official view dooms to impotence many Internet sites that are opposed to the wars and to the rise of the domestic US police state.

These sites, for whatever the reasons, accept the government’s explanation of 9/11; yet, they try to oppose the “war on terror” and the police state which are the consequences of accepting the government’s explanation. Trying to oppose the consequences of an event whose explanation you accept is an impossible task.

If you believe that America was attacked by Muslim terrorists and is susceptible to future attacks, then a “war on terror” and a domestic police state to root out terrorists become necessary to make Americans safe. The idea that a domestic police state and open-ended war might be more dangerous threats to Americans than terrorists is an impermissible thought.

A country whose population has been trained to accept the government’s word and to shun those who question it is a country without liberty in its future.

Foreign Policy Journal

Paul Craig Roberts served as Assistant Secretary of the Treasury in the Reagan administration.

13-26

Is This the Culmination of Two Years of Destabilization?

April 8, 2010 by · Leave a Comment 

Are the Iranian Protests Another US Orchestrated “Color Revolution?”

By Paul Craig Roberts

A number of commentators have expressed their idealistic belief in the purity of Mousavi, Montazeri, and the westernized youth of Tehran. The CIA destabilization plan, announced two years ago (see below) has somehow not contaminated unfolding events.

The claim is made that Ahmadinejad stole the election, because the outcome was declared too soon after the polls closed for all the votes to have been counted. However, Mousavi declared his victory several hours before the polls closed. This is classic CIA destabilization designed to discredit a contrary outcome. It forces an early declaration of the vote. The longer the time interval between the preemptive declaration of victory and the release of the vote tally, the longer Mousavi has to create the impression that the authorities are using the time to fix the vote. It is amazing that people don’t see through this trick.

As for the grand ayatollah Montazeri’s charge that the election was stolen, he was the initial choice to succeed Khomeini, but lost out to the current Supreme Leader. He sees in the protests an opportunity to settle the score with Khamenei. Montazeri has the incentive to challenge the election whether or not he is being manipulated by the CIA, which has a successful history of manipulating disgruntled politicians.

There is a power struggle among the ayatollahs. Many are aligned against Ahmadinejad because he accuses them of corruption, thus playing to the Iranian countryside where Iranians believe the ayatollahs’ lifestyles indicate an excess of power and money. In my opinion, Ahmadinejad’s attack on the ayatollahs is opportunistic. However, it does make it odd for his American detractors to say he is a conservative reactionary lined up with the ayatollahs.

Commentators are “explaining” the Iran elections based on their own illusions, delusions, emotions, and vested interests. Whether or not the poll results predicting Ahmadinejad’s win are sound, there is, so far, no evidence beyond surmise that the election was stolen. However, there are credible reports that the CIA has been working for two years to destabilize the Iranian government.

On May 23, 2007, Brian Ross and Richard Esposito reported on ABC News: “The CIA has received secret presidential approval to mount a covert “black” operation to destabilize the Iranian government, current and former officials in the intelligence community tell ABC News.”

On May 27, 2007, the London Telegraph independently reported: “Mr. Bush has signed an official document endorsing CIA plans for a propaganda and disinformation campaign intended to destabilize, and eventually topple, the theocratic rule of the mullahs.”

A few days previously, the Telegraph reported on May 16, 2007, that Bush administration neocon warmonger John Bolton told the Telegraph that a US military attack on Iran would “be a ‘last option’ after economic sanctions and attempts to foment a popular revolution had failed.”

On June 29, 2008, Seymour Hersh reported in the New Yorker: “Late last year, Congress agreed to a request from President Bush to fund a major escalation of covert operations against Iran, according to current and former military, intelligence, and congressional sources. These operations, for which the President sought up to four hundred million dollars, were described in a Presidential Finding signed by Bush, and are designed to destabilize the country’s religious leadership.”

The protests in Tehran no doubt have many sincere participants. The protests also have the hallmarks of the CIA orchestrated protests in Georgia and Ukraine. It requires total blindness not to see this.

Daniel McAdams has made some telling points. For example, neoconservative Kenneth Timmerman wrote the day before the election that “there’s talk of a ‘green revolution’ in Tehran.” How would Timmerman know that unless it was an orchestrated plan? Why would there be a ‘green revolution’ prepared prior to the vote, especially if Mousavi and his supporters were as confident of victory as they claim? This looks like definite evidence that the US is involved in the election protests.

Timmerman goes on to write that “the National Endowment for Democracy has spent millions of dollars promoting ‘color’ revolutions . . . Some of that money appears to have made it into the hands of pro-Mousavi groups, who have ties to non-governmental organizations outside Iran that the National Endowment for Democracy funds.” Timmerman’s own neocon Foundation for Democracy is “a private, non-profit organization established in 1995 with grants from the National Endowment for Democracy (NED), to promote democracy and internationally-recognized standards of human rights in Iran.”

Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration. He is coauthor of The Tyranny of Good Intentions.He can be reached at: PaulCraigRoberts@yahoo.com.

12-15

The Road to Armageddon

March 4, 2010 by · Leave a Comment 

By Paul Craig Roberts

Armageddon The Washington Times is a newspaper that looks with favor upon the Bush/Cheney/Obama/neocon wars of aggression in the Middle East and favors making terrorists pay for 9/11. Therefore, I was surprised to learn on February 24 that the most popular story on the paper’s website for the past three days was the “Inside the Beltway” report, “Explosive News,” about the 31 press conferences in cities in the US and abroad on February 19 held by Architects and Engineers for 9/11 Truth, an organization of professionals which now has 1,000 members.

I was even more surprised that the news report treated the press conference seriously. How did three World Trade Center skyscrapers suddenly disintegrate into fine dust? How did massive steel beams in three skyscrapers suddenly fail as a result of short-lived, isolated, and low temperature fires? “A thousand architects and engineers want to know, and are calling on Congress to order a new investigation into the destruction of the Twin Towers and Building 7,” reports the Washington Times.

The paper reports that the architects and engineers have concluded that the Federal Emergency Management Agency and the National Institute of Standards and Technology provided “insufficient, contradictory and fraudulent accounts of the circumstances of the towers’ destruction” and are “calling for a grand jury investigation of NIST officials.”

The newspaper reports that Richard Gage, the spokesperson for the architects and engineers said: “Government officials will be notified that “Misprision of Treason,’ U.S. Code 18 (Sec. 2382) is a serious federal offense, which requires those with evidence of treason to act. The implications are enormous and may have profound impact on the forthcoming Khalid Sheik Mohammed trial.”

There is now an organization, Firefighters for 9/11 Truth. At the main press conference in San Francisco, Eric Lawyer,the head of that organization, announced the firefighters’ support for the architects and engineers’ demands. He reported that no forensic investigation was made of the fires that are alleged to have destroyed the three buildings and that this failure constitutes a crime.

Mandated procedures were not followed, and instead of being preserved and investigated, the crime scene was destroyed. He also reported that there are more than one hundred first responders who heard and experienced explosions and that there is radio, audio and video evidence of explosions.

Also at the press conference, physicist Steven Jones presented the evidence of nano-thermite in the residue of the WTC buildings found by an international panel of scientists led by University of Copenhagen nano-chemist Professor Niels Harrit. Nano-thermite is a high-tech explosive/pyrotechnic capable of instantly melting steel girders.

Before we yell “conspiracy theory,” we should be aware that the architects, engineers, firefighters, and scientists offer no theory. They provide evidence that challenges the official theory. This evidence is not going to go away.

If expressing doubts or reservations about the official story in the 9/11 Commission Report makes a person a conspiracy theory kook, then we have to include both co-chairmen of the 9/11 Commission and the Commission’s legal counsel, all of whom have written books in which they clearly state that they were lied to by government officials when they conducted their investigation, or, rather, when they presided over the investigation conducted by executive director Philip Zelikow, a member of President George W. Bush’s transition team and Foreign Intelligence Advisory Board and a co-author of Bush Secretary of State Condi “Mushroom Cloud” Rice.

There will always be Americans who will believe whatever the government tells them no matter how many times they know the government has lied to them. Despite expensive wars that threaten Social Security and Medicare, wars based on non-existent Iraqi weapons of mass destruction, non-existent Saddam Hussein connections to al Qaida, non-existent Afghan participation in the 9/11 attacks, and the non-existent Iranian nukes that are being hyped as the reason for the next American war of aggression in the Middle East, more than half of the U.S. population still believes the fantastic story that the government has told them about 9/11, a Muslim conspiracy that outwitted the entire Western world.

Moreover, it doesn’t matter to these Americans how often the government changes its story. For example, Americans first heard of Osama bin Laden because the Bush regime pinned the 9/11 attacks on him. Over the years video after video was served up to the gullible American public of bin Laden’s pronouncements. Experts dismissed the videos as fakes, but Americans remained their gullible selves. Then suddenly last year a new 9/11 “mastermind” emerged to take bin Laden’s place, the captive Khalid Sheik Mohammed, the detainee waterboarded 183 times until he confessed to masterminding the 9/11 attack.

In the Middle Ages confessions extracted by torture constituted evidence, but self-incrimination has been a no-no in the U.S. legal system since our founding. But with the Bush regime and the Republican federal judges, whom we were assured would defend the U.S. Constitution, the self-incrimination of Sheik Mohammed stands today as the only evidence the U.S. government has that Muslim terrorists pulled off 9/11.

If a person considers the feats attributed to Khalid Sheik Mohammed, they are simply unbelievable. Sheik Mohammed is a more brilliant, capable superhero than V in the fantasy movie, “V for Vendetta.” Sheik Mohammed outwitted all 16 U.S. intelligence agencies along with those of all U.S. allies or puppets, including Israel’s Mossad. No intelligence service on earth, or all of them combined, was a match for Sheik Mohammed.

Sheik Mohammed outwitted the U.S. National Security Council, Dick Cheney, the Pentagon, the State Department, NORAD, the U.S. Air Force, and Air Traffic Control. He caused Airport Security to fail four times in one morning. He caused the state-of-the-art air defenses of the Pentagon to fail, allowing a hijacked airliner, which was off course all morning while the U.S. Air Force, for the first time in history, was unable to get aloft intercepter aircraft, to crash into the Pentagon.

Sheik Mohammed was able to perform these feats with unqualified pilots.

Sheik Mohammed, even as a waterboarded detainee, has managed to prevent the FBI from releasing the many confiscated videos that would show, according to the official story, the hijacked airliner hitting the Penagon.

How naive do you have to be to believe that any human, or for that matter Hollywood fantasy character, is this powerful and capable?

If Sheik Mohammed has these superhuman capabilities, how did the incompetent Americans catch him? This guy is a patsy tortured into confession in order to keep the American naifs believing the government’s conspiracy theory.

What is going on here is that the U.S. government has to bring the 9/11 mystery to an end. The government must put on trial and convict a culprit so that it can close the case before it explodes. Anyone waterboarded 183 times would confess to anything.

The U.S. government has responded to the evidence being arrayed against its outlandish 9/11 conspiracy theory by redefining the war on terror from external to internal enemies. Homeland Security Secretary Janet Napolitano said on February 21 that American extremists are now as big a concern as international terrorists. Extremists, of course, are people who get in the way of the government’s agenda, such as the 1,000 Architects and Engineers for 9/11 Truth. The group used to be 100, now it is 1,000. What if it becomes 10,000?

Cass Sunstein, an Obama regime official, has a solution for the 9/11 skeptics: Infiltrate them and provoke them into statements and actions that can be used to discredit or to arrest them. But get rid of them at all cost.

Why employ such extreme measures against alleged kooks if they only provide entertainment and laughs? Is the government worried that they are on to something?

Instead, why doesn’t the U.S. government simply confront the evidence that is presented and answer it?

If the architects, engineers, firefighters, and scientists are merely kooks, it would be a simple matter to acknowledge their evidence and refute it. Why is it necessary to infiltrate them with police agents and to set them up?

Many Americans would reply that “their” government would never even dream of killing Americans by hijacking airliners and destroying buildings in order to advance a government agenda. But on February 3, National Intelligence Director Dennis Blair told the House Intelligence Committee that the U.S. government can assassinate its own citizens when they are overseas. No arrest, trial, or conviction of a capital crime is necessary. Just straight out murder.

Obviously, if the U.S. government can murder its citizens abroad it can murder them at home, and has done so. For example, 100 Branch Davidians were murdered in Waco, Texas, by the Clinton administration for no legitimate reason. The government just decided to use its power knowing that it could get away with it, which it did.

Americans who think “their” government is some kind of morally pure operation would do well to familiarize themselves with Operation Northwoods. Operation Northwoods was a plot drawn up by the U.S. Joint Chiefs of Staff for the CIA to commit acts of terrorism in American cities and fabricate evidence blaming Castro so that the U.S. could gain domestic and international support for regime change in Cuba. The secret plan was nixed by President John F. Kennedy and was declassified by the John F. Kennedy Assassination Records Review Board. It is available online in the National Security Archive. There are numerous online accounts available, including Wikipedia. James Bamford’s book, Body of Secrets, also summarizes the plot:

“Operation Northwoods, which had the written approval of the Chairman [Gen. Lemnitzer] and every member of the Joint Chiefs of Staff, called for innocent people to be shot on American streets; for boats carrying refugees fleeing Cuba to be sunk on the high seas; for a wave of violent terrorism to be launched in Washington, D.C., Miami, and elsewhere. People would be framed for bombings they did not commit; planes would be hijacked. Using phony evidence, all of it would be blamed on Castro, thus giving Lemnitzer and his cabal the excuse, as well as the public and international backing, they needed to launch their war.”

Prior to 9/11 the American neoconservatives were explicit that the wars of aggression that they intended to launch in the Middle East required “a new Pearl Harbor.”

For their own good and that of the wider world, Americans need to pay attention to the growing body of experts who are telling them that the government’s account of 9/11 fails their investigation. 9/11 launched the neoconservative plan for U.S. world hegemony.

As I write, the U.S. government is purchasing the agreement of foreign governments that border Russia to accept U.S. missile interceptor bases. The U.S. intends to ring Russia with U.S. missile bases from Poland through central Europe and Kosovo to Georgia, Azerbaijan and central Asia. U.S. envoy Richard Holbrooke declared on February 20 that al Qaida is moving into former central Asian constituent parts of the Soviet Union, such as Tajikistan, Kyrgyzstan, Uzbekistan, Turkmenistan, and Kazakhstan. Holbrooke is soliciting U.S. bases in these former Soviet republics under the guise of the ever-expanding “war on terror.”

The U.S. has already encircled Iran with military bases. The U.S. government intends to neutralize China by seizing control over the Middle East and cutting China off from oil.

This plan assumes that Russia and China, nuclear armed states, will be intimidated by U.S. anti-missile defenses and acquiesce to U.S. hegemony and that China will lack oil for its industries and military.

The U.S. government is delusional. Russian military and political leaders have responded to the obvious threat by declaring NATO a direct threat to the security of Russia and by announcing a change in Russian war doctrine to the pre-emptive launch of nuclear weapons. The Chinese are too confident to be bullied by a washed-up American “superpower.”

The morons in Washington are pushing the envelope of nuclear war. The insane drive for American hegemony threatens life on earth. The American people, by accepting the lies and deceptions of “their” government, are facilitating this outcome.

[Paul Craig Roberts, a former Assistant Secretary of the US Treasury and former associate editor of the Wall Street Journal, has been reporting shocking cases of prosecutorial abuse for two decades. A new edition of his book, The Tyranny of Good Intentions, co-authored with Lawrence Stratton, a documented account of how Americans lost the protection of law, was published by Random House in March, 2008. His latest book, How The Economy Was Lost, has just been published by CounterPunch/AK Press.]

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Security Without Freedoms

December 31, 2009 by · Leave a Comment 

By Paul Craig Roberts

December 22, 2009 “Information Clearing House” — Obama’s dwindling band of true believers has taken heart that their man has finally delivered on one of his many promises–the closing of the Guantanamo prison. But the prison is not being closed. It is being moved to Illinois, if the Republicans permit.

In truth, Obama has handed his supporters another defeat. Closing Guantanamo meant ceasing to hold people in violation of our legal principles of habeas corpus and due process and ceasing to torture them in violation of US and international laws.

All Obama would be doing would be moving 100 people, against whom the US government is unable to bring a case, from the prison in Guantanamo to a prison in Thomson, Illinois.

Are the residents of Thomson despondent that the US government has chosen their town as the site on which to continue its blatant violation of US legal principles? No, the residents are happy. It means jobs.

The hapless prisoners had a better chance of obtaining release from Guantanamo. Now the prisoners are up against two US senators, a US representative, a mayor, and a state governor who have a vested interest in the prisoners’ permanent detention in order to protect the new prison jobs in the hamlet devastated by unemployment.

Neither the public nor the media have ever shown any interest in how the detainees came to be incarcerated. Most of the detainees were unprotected people who were captured by Afghan war lords and sold to the Americans as “terrorists” in order to collect a proffered bounty. It was enough for the public and the media that the Defense Secretary at the time, Donald Rumsfeld, declared the Guantanamo detainees to be the “780 most dangerous people on earth.”

The vast majority have been released after years of abuse. The 100 who are slated to be removed to Illinois have apparently been so badly abused that the US government is afraid to release them because of the testimony the prisoners could give to human rights organizations and foreign media about their mistreatment.

Our British allies are showing more moral conscience than Americans are able to muster. Former PM Tony Blair, who provided cover for President Bush’s illegal invasion of Iraq, is being damned for his crimes by UK officialdom testifying before the Chilcot Inquiry.

The London Times on December 14 summed up the case against Blair in a headline: “Intoxicated by Power, Blair Tricked Us Into War.” Two days later the British First Post declared: “War Crime Case Against Tony Blair Now Rock-solid.” In an unguarded moment Blair let it slip that he favored a conspiracy for war regardless of the validity of the excuse [weapons of mass destruction] used to justify the invasion.

The movement to bring Blair to trial as a war criminal is gathering steam. Writing in the First Post Neil Clark reported: “There is widespread contempt for a man [Blair] who has made millions [his reward from the Bush regime] while Iraqis die in their hundreds of thousands due to the havoc unleashed by the illegal invasion, and who, with breathtaking arrogance, seems to regard himself as above the rules of international law.” Clark notes that the West’s practice of shipping Serbian and African leaders off to the War Crimes Tribunal, while exempting itself, is wearing thin.

In the US, of course, there is no such attempt to hold to account Bush, Cheney, Condi Rice, Rumsfeld, Wolfowitz, and the large number of war criminals that comprised the Bush Regime. Indeed, Obama, whom Republicans love to hate, has gone out of his way to protect the Bush cohort from being held accountable.

Here in Great Moral America we only hold accountable celebrities and politicians for their sexual indiscretions. Tiger Woods is paying a bigger price for his girlfriends than Bush or Cheney will ever pay for the deaths and ruined lives of millions of people. The consulting company, Accenture Plc, which based its marketing program on Tiger Woods, has removed Woods from its Web site. Gillette announced that the company is dropping Woods from its print and broadcast ads. AT&T says it is re-evaluating the company’s relationship with Woods.

Apparently, Americans regard sexual infidelity as far more serious than invading countries on the basis of false charges and deception, invasions that have caused the deaths and displacement of millions of innocent people. Remember, the House impeached President Clinton not for his war crimes in Serbia, but for lying about his affair with Monica Lewinsky.

Americans are more upset by Tiger Woods’ sexual affairs than they are by the Bush and Obama administrations’ destruction of US civil liberty. Americans don’t seem to mind that “their” government for the last 8 years has resorted to the detention practices of 1,000 years ago–simply grab a person and throw him into a dungeon forever without bringing charges and obtaining a conviction.

According to polls, Americans support torture, a violation of both US and international law, and Americans don’t mind that their government violates the Foreign Intelligence Surveillance Act and spies on them without obtaining warrants from a court. Apparently, the brave citizens of the “sole remaining superpower” are so afraid of terrorists that they are content to give up liberty for safety, an impossible feat.

With stunning insouciance, Americans have given up the rule of law that protected their liberty. The silence of law schools and bar associations indicates that the age of liberty has passed. In short, the American people support tyranny. And that’s where they are headed.

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Threatening Iran

July 23, 2009 by · Leave a Comment 

By Paul Craig Roberts, Countercurrents.org

When Japan attacked Pearl Harbor, Japan did not spend years preparing her public case and demonstrating her deployment of forces for the attack. Japan did not make a world issue out of her view that the US was denying Japan her role in the Pacific by hindering Japan’s access to raw materials and energy.

Similarly, when Hitler attacked Russia, he did not preface his invasion with endless threats and a public case that blamed the war on England.

These events happened before the PSYOPS (Psychological Operations) era. Today, America and Israel’s wars of aggression are preceded by years of propaganda and international meetings, so that by the time the attack comes it is an expected event, not a monstrous surprise attack with its connotation of naked aggression.

The US, which has been threatening Iran with attack for years, has passed the job to Israel. During the third week of July, the American vice president and secretary of state gave Israel the go-ahead. Israel has made great public disclosure of its warships passing through the Suez Canal on their way to Iran. “Muslim” Egypt is complicit, offering no objection to Israel’s naval forces on their way to a war crime under the Nuremberg standard that the US imposed on the world.

By the time the attack occurs, it will be old hat, an expected event, and, moreover, an event justified by years of propaganda asserting Iran’s perfidy.

Israel intends to dominate the Middle East. Israel’s goal is to incorporate all of Palestine and southern Lebanon into “Greater Israel.” The US intends to dominate the entire world, deciding who rules which countries and controlling resource flows.

The US and Israel are likely to succeed, because they have effective PSYOPS. For the most part, the world media follows the US media, which follows the US and Israeli governments’ lines. Indeed, the American media is part of the PSYOPS of both countries.

According to Thierry Meyssan in the Swiss newspaper Zeit-Fragen, the CIA used SMS or text messaging and Twitter to spread disinformation about the Iranian election, including the false report that the Guardian Council had informed Mousavi that he had won the election. When the real results were announced, Ahmadinejad’s reelection appeared to be fraudulent.

Iran’s fate awaits it. A reasonable hypothesis to be entertained and examined is whether Iran’s Rafsanjani and Mousavi are in league with Washington to gain power in Iran. Both have lost out in the competition for government power in Iran. Yet, both are egotistical and ambitious. The Iranian Revolution of 1979 probably means nothing to them except an opportunity for personal power. The way the West has always controlled the Middle East is by purchasing the politicians who are out of power and backing them in overthrowing the independent government. We see this today in Sudan as well.

In the case of Iran, there is an additional factor that might align Rafsanjani with Washington. President Ahmadienijad attacked former President Rafsanjani, one of Iran’s most wealthy persons, as corrupt. If Rafsanjani feels threatened by this attack, he has little choice but to try to overthrow the existing government. This makes him the perfect person for Washington.

Perhaps there is a better explanation why Rafsanjani and Mousavi, two highly placed members of the Iranian elite, chose to persist in allegations of election fraud that have played into Washington’s hands by calling into question the legitimacy of the Iranian government. It cannot be that the office of president is worth such costs as the Iranian presidency is not endowed with decisive powers.

Without Rafsanjani and Mousavi, the US media could not have orchestrated the Iranian elections as “stolen,” a n orchestration that the US government used to further isolate and discredit the Iranian government, making it easier for Iran to be attacked. Normally, well placed members of an elite do not help foreign enemies set their country up for attack.

An Israeli attack on Iran is likely to produce retaliation, which Washington will use to enter the conflict. Have the personal ambitions of Rafsanjani and Mousavi, and the naive youthful upper class Iranian protesters, set Iran up for destruction?

Consult a map and you will see that Iran is surrounded by a dozen countries that host US military bases. Why does anyone in Iran doubt that Iran is on her way to becoming another Iraq, Afghanistan, and Pakistan, in the end to be ruled by oil companies and an American puppet?

The Russians and Chinese are off balance because of successful American interventions in their spheres of influence, uncertain of the threat and the response. Russia could have prevented the coming attack on Iran, but, pressured by Washington, Russia has not delivered the missile systems that Iran purchased. China suffers from her own hubris as a rising economic power, and is about to lose her energy investments in Iran to US/Israeli aggression. China is funding America’s wars of aggression with loans, and Russia is even helping the US to set up a puppet state in Afghanistan, thus opening up former Soviet central Asia t o US hegemony.

The world is so impotent that even the bankrupt US can launch a new war of aggression and have it accepted as a glorious act of liberation in behalf of women’s rights, peace, and democracy.

Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration. He is coauthor of The Tyranny of Good Intentions.He can be reached at: PaulCraigRoberts@yahoo.com

11-31

Another “Color Revolution?”

July 2, 2009 by · Leave a Comment 

By Paul Craig Roberts

2009-06-24T125807Z_01_SIN999_RTRMDNP_3_IRAN-ELECTION

Green revolutionary? Candidate Mirhossein Mousavi in May 30, 2009 file photo.   

REUTERS/Nikoubazl

A number of commentators have expressed their idealistic belief in the purity of Mousavi, Montazeri, and the westernized youth of Terhan. The CIA destabilization plan, announced two years ago (see below) has somehow not contaminated unfolding events.

The claim is made that Ahmadinejad stole the election, because the outcome was declared too soon after the polls closed for all the votes to have been counted. However, Mousavi declared his victory several hours before the polls closed. This is classic CIA destabilization designed to discredit a contrary outcome. It forces an early declaration of the vote. The longer the time interval between the preemptive declaration of victory and the release of the vote tally, the longer Mousavi has to create the impression that the authorities are using the time to fix the vote. It is amazing that people don’t see through this trick.

As for the grand ayatollah Montazeri’s charge that the election was stolen, he was the initial choice to succeed Khomeini, but lost out to the current Supreme Leader. He sees in the protests an opportunity to settle the score with Khamenei. Montazeri has the incentive to challenge the election whether or not he is being manipulated by the CIA, which has a successful history of manipulating disgruntled politicians.

There is a power struggle among the ayatollahs. Many are aligned against Ahmadinejad because he accuses them of corruption, thus playing to the Iranian countryside where Iranians believe the ayatollahs’ lifestyles indicate an excess of power and money. In my opinion, Ahmadinejad’s attack on the ayatollahs is opportunistic. However, it does make it odd for his American detractors to say he is a conservative reactionary lined up with the ayatollahs.

Commentators are “explaining” the Iran elections based on their own illusions, delusions, emotions, and vested interests. Whether or not the poll results predicting Ahmadinejad’s win are sound, there is, so far, no evidence beyond surmise that the election was stolen. However, there are credible reports that the CIA has been working for two years to destabilize the Iranian government.

On May 23, 2007, Brian Ross and Richard Esposito reported on ABC News: “The CIA has received secret presidential approval to mount a covert “black” operation to destabilize the Iranian government, current and former officials in the intelligence community tell ABC News.”

On May 27, 2007, the London Telegraph independently reported: “Mr. Bush has signed an official document endorsing CIA plans for a propaganda and disinformation campaign intended to destabilize, and eventually topple, the theocratic rule of the mullahs.”

A few days previously, the Telegraph reported on May 16, 2007, that Bush administration neocon warmonger John Bolton told the Telegraph that a US military attack on Iran would “be a ‘last option’ after economic sanctions and attempts to foment a popular revolution had failed.”

On June 29, 2008, Seymour Hersh reported in the New Yorker: “Late last year, Congress agreed to a request from President Bush to fund a major escalation of covert operations against Iran, according to current and former military, intelligence, and congressional sources. These operations, for which the President sought up to four hundred million dollars, were described in a Presidential Finding signed by Bush, and are designed to destabilize the country’s religious leadership.”

The protests in Tehran no doubt have many sincere participants. The protests also have the hallmarks of the CIA orchestrated protests in Georgia and Ukraine. It requires total blindness not to see this.

Daniel McAdams has made some telling points. For example, neoconservative Kenneth Timmerman wrote the day before the election that “there’s talk of a ‘green revolution’ in Tehran.” How would Timmerman know that unless it was an orchestrated plan? Why would there be a ‘green revolution’ prepared prior to the vote, especially if Mousavi and his supporters were as confident of victory as they claim? This looks like definite evidence that the US is involved in the election protests.

Timmerman goes on to write that “the National Endowment for Democracy has spent millions of dollars promoting ‘color’ revolutions . . . Some of that money appears to have made it into the hands of pro-Mousavi groups, who have ties to non-governmental organizations outside Iran that the National Endowment for Democracy funds.” Timmerman’s own neocon Foundation for Democracy is “a private, non-profit organization established in 1995 with grants from the National Endowment for Democracy (NED), to promote democracy and internationally-recognized standards of human rights in Iran.”

Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration. He is coauthor of The Tyranny of Good Intentions.He can be reached at: PaulCraigRoberts@yahoo.com

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