Archive for December, 2010

Ex-Intelligence Officers, Others See Plusses in WikiLeaks Disclosures

Posted in Blogroll on December 9, 2010 by Minimux

The following statement was released today, signed by Daniel Ellsberg, Frank Grevil, Katharine Gun, David MacMichael, Ray McGovern, Craig Murray, Coleen Rowley and Larry Wilkerson; all are associated with Sam Adams Associates for Integrity in Intelligence.

WikiLeaks has teased the genie of transparency out of a very opaque bottle, and powerful forces in America, who thrive on secrecy, are trying desperately to stuff the genie back in. The people listed below this release would be pleased to shed light on these exciting new developments.

How far down the U.S. has slid can be seen, ironically enough, in a recent commentary in Pravda (that’s right, Russia’s Pravda): “What WikiLeaks has done is make people understand why so many Americans are politically apathetic … After all, the evils committed by those in power can be suffocating, and the sense of powerlessness that erupts can be paralyzing, especially when … government evildoers almost always get away with their crimes. …”

So shame on Barack Obama, Eric Holder, and all those who spew platitudes about integrity, justice and accountability while allowing war criminals and torturers to walk freely upon the earth. … the American people should be outraged that their government has transformed a nation with a reputation for freedom, justice, tolerance and respect for human rights into a backwater that revels in its criminality, cover-ups, injustices and hypocrisies.

Odd, isn’t it, that it takes a Pravda commentator to drive home the point that the Obama administration is on the wrong side of history. Most of our own media are demanding that WikiLeaks leader Julian Assange be hunted down — with some of the more bloodthirsty politicians calling for his murder. The corporate-and-government dominated media are apprehensive over the challenge that WikiLeaks presents. Perhaps deep down they know, as Dickens put it, “There is nothing so strong … as the simple truth.”

As part of their attempt to blacken WikiLeaks and Assange, pundit commentary over the weekend has tried to portray Assange’s exposure of classified materials as very different from — and far less laudable than — what Daniel Ellsberg did in releasing the Pentagon Papers in 1971. Ellsberg strongly rejects the mantra “Pentagon Papers good; WikiLeaks material bad.” He continues: “That’s just a cover for people who don’t want to admit that they oppose any and all exposure of even the most misguided, secretive foreign policy. The truth is that EVERY attack now made on WikiLeaks and Julian Assange was made against me and the release of the Pentagon Papers at the time.”

Motivation? WikiLeaks’ reported source, Army Pvt. Bradley Manning, having watched Iraqi police abuses, and having read of similar and worse incidents in official messages, reportedly concluded, “I was actively involved in something that I was completely against.” Rather than simply go with the flow, Manning wrote: “I want people to see the truth … because without information you cannot make informed decisions as a public,” adding that he hoped to provoke worldwide discussion, debates, and reform.

There is nothing to suggest that WikiLeaks/Assange’s motives were any different. Granted, mothers are not the most impartial observers. Yet, given what we have seen of Assange’s behavior, there was the ring of truth in Assange’s mother’s recent remarks in an interview with an Australian newspaper. She put it this way: “Living by what you believe in and standing up for something is a good thing. … He sees what he is doing as a good thing in the world, fighting baddies, if you like.”

That may sound a bit quixotic, but Assange and his associates appear the opposite of benighted. Still, with the Pentagon PR man Geoff Morrell and even Attorney General Eric Holder making thinly disguised threats of extrajudicial steps, Assange may be in personal danger.

The media: again, the media is key. No one has said it better than Monseñor Romero of El Salvador, who just before he was assassinated 25 years ago warned, “The corruption of the press is part of our sad reality, and it reveals the complicity of the oligarchy.” Sadly, that is also true of the media situation in America today.

The big question is not whether Americans can “handle the truth.” We believe they can. The challenge is to make the truth available to them in a straightforward way so they can draw their own conclusions — an uphill battle given the dominance of the mainstream media, most of which have mounted a hateful campaign to discredit Assange and WikiLeaks.

So far, the question of whether Americans can “handle the truth” has been an academic rather than an experience-based one, because Americans have had very little access to the truth. Now, however, with the WikiLeaks disclosures, they do. Indeed, the classified messages from the Army and the State Department released by WikiLeaks are, quite literally, “ground truth.”

How to inform American citizens? As a step in that direction, on October 23 we “Sam Adams Associates for Integrity in Intelligence” (see below) presented our annual award for integrity to Julian Assange. He accepted the honor “on behalf of our sources, without which WikiLeaks’ contributions are of no significance.” In presenting the award, we noted that many around the world are deeply indebted to truth-tellers like WikiLeaks and its sources.

Here is a brief footnote: Sam Adams Associates for Integrity in Intelligence (SAAII) is a group of former CIA colleagues and other admirers of former intelligence analyst Sam Adams, who hold up his example as a model for those who would aspire to the courage to speak truth to power. (For more, please see here.)

Sam did speak truth to power on Vietnam, and in honoring his memory, SAAII confers an award each year to a truth-teller exemplifying Sam Adams’ courage, persistence, and devotion to truth — no matter the consequences. Previous recipients include:

-Coleen Rowley of the FBI
-Katharine Gun of British Intelligence
-Sibel Edmonds of the FBI
-Craig Murray, former UK ambassador to Uzbekistan
-Sam Provance, former Sgt., US Army
-Frank Grevil, Maj., Danish Army Intelligence
-Larry Wilkerson, Col., US Army (ret.)
-Julian Assange, WikiLeaks

“There is nothing concealed that will not be revealed, nothing hidden that will not be made known. Everything you have said in the dark will be heard in the daylight; what you have whispered in locked rooms will be proclaimed from the rooftops.”
– Luke 12:2-3

The following former awardees and other associates have signed the above statement; some are available for interviews:

DANIEL ELLSBERG
A former government analyst, Ellsberg leaked the Pentagon Papers, a secret government history of the Vietnam War to the New York Times and other newspapers in 1971. He was an admirer of Sam Adams when they were both working on Vietnam and in March 1968 disclosed to the New York Times some of Adams’ accurate analysis, helping head off reinforcement of 206,000 additional troops into South Vietnam and a widening of the war at that time to neighboring countries.

FRANK GREVIL
Grevil, a former Danish intelligence analyst, was imprisoned for giving the Danish press documents showing that Denmark’s Prime Minister (now NATO Secretary General) disregarded warnings that there was no authentic evidence of WMD in Iraq; in Copenhagen, Denmark.

KATHARINE GUN
Gun is a former British government employee who faced two years imprisonment in England for leaking a U.S. intelligence memo before the invasion of Iraq. The memo indicated that the U.S. had mounted a spying “surge” against U.N. Security Council delegations in early 2003 in an effort to win approval for an Iraq war resolution. The leaked memo — published by the British newspaper The Observer on March 2, 2003 — was big news in parts of the world, but almost ignored in the United States. The U.S. government then failed to obtain a U.N. resolution approving war, but still proceeded with the invasion.

DAVID MacMICHAEL
MacMichael is a former CIA analyst. He resigned in the 1980s when he came to the conclusion that the CIA was slanting intelligence on Central America for political reasons. He is a member of Veteran Intelligence Professionals for Sanity.

RAY McGOVERN
McGovern was a CIA analyst for 27 years, whose duties included preparing and briefing the President’s Daily Brief and chairing National Intelligence Estimates. He is on the Steering Group of Veteran Intelligence Professionals for Sanity.

CRAIG MURRAY
Murray, former UK ambassador to Uzbekistan, was fired from his job when he objected to Uzbeks being tortured to gain “intelligence” on “terrorists.” Upon receiving his Sam Adams award, Murray said, “I would rather die than let someone be tortured in an attempt to give me some increment of security.” Observers have noted that Murray was subjected to similar character assassination techniques as Julian Assange is now encountering to discredit him.

COLEEN ROWLEY
Rowley, a former FBI Special Agent and Division Counsel whose May 2002 memo described some of the FBI’s pre-9/11 failures, was named one of Time Magazine’s “Persons of the Year” in 2002. She recently co-wrote a Los Angeles Times op-ed titled, “WikiLeaks and 9/11: What if? Frustrated investigators might have chosen to leak information that their superiors bottled up, perhaps averting the terrorism attacks.”

Assange Could Face Espionage Trial In US

Posted in Blogroll on December 9, 2010 by Minimux

Assange Could Face Espionage Trial In US

by Kim Sengupta

Informal discussions have already taken place between US and Swedish officials over the possibility of the WikiLeaks founder Julian Assange being delivered into American custody, according to diplomatic sources.

Mr Assange is in a British jail awaiting extradition proceedings to Sweden after being refused bail at Westminster Magistrates’ Court despite a number of prominent public figures offering to stand as surety.

His arrest in north London yesterday was described by the US Defence Secretary Robert Gates as “good news”, and may pave the way for extradition to America and a possible lengthy jail sentence.

The US Justice Department is considering charging Mr Assange with espionage offences over his website’s unprecedented release of classified US diplomatic files. Several right-wing American politicians are pressing for his prosecution and even execution, with Sarah Palin, the former vice-presidential candidate, saying he should be pursued the same as al-Qa’ida and Taliban leaders.

Mr Assange’s appearance in the London court, the focus of massive international media attention, puts Britain in the centre of the controversy and recrimination over the publishing of thousands of diplomatic cables which have caused acute embarrassment to the administration in Washington. If the man responsible for putting them in the public domain is to be silenced, his supporters say, the process started here.

The Swedish government seeks Mr Assange’s extradition for alleged sexual offences against two women.

Sources stressed that no extradition request would be submitted until and unless the US government laid charges against Mr Assange, and that attempts to take him to America would only take place after legal proceedings are concluded in Sweden.

Mr Assange, 39, had voluntarily gone to a police station accompanied by solicitors after the issuing of an international warrant.

The court heard that Jemima Khan, the sister of the Conservative MP Zac Goldsmith, the film director Ken Loach and journalist John Pilger were among those who had offered to stand bail to the sum of £180,000. But District Judge Howard Rule remanded him in custody on the grounds that there was a risk the WikiLeaks founder would fail to surrender.

Mr Loach, who offered £20,000, explained that he did not know Mr Assange other than by reputation, but he said: “I think the work he has done has been a public service. I think we are entitled to know the dealings of those that govern us.” Mr Pilger, who also offered £20,000, said he knew Mr Assange as a journalist and personal friend and had a “very high regard for him”.

“I am aware of the offences and I am also aware of quite a lot of the detail around the offences,” said Mr Pilger. “I am here today because the charges against him in Sweden are absurd and were judged as absurd by the chief prosecutor there when she threw the whole thing out until a senior political figure intervened.” Ms Khan offered a further £20,000 “or more if need be”, although she said she did not know Assange.

Gemma Lindfield, appearing for the Swedish authorities, successfully opposed bail being granted because there was a risk he would fail to surrender – and also for his own protection, she said. She outlined five reasons why there was a risk: his “nomadic” lifestyle, reports that he intended to seek asylum in Switzerland, access to money from donors, his network of international contacts and his Australian nationality.

Mrs Lindfield added: “Any number of people could take it upon themselves to cause him harm. This is someone for whom, simply put, there is no condition, even the most stringent, that would ensure he would surrender to the jurisdiction of this court.”

Ms Lindfield told the court that Mr Assange was wanted in connection with four allegations of sexual offences.She said the first complainant, Miss A, said she was victim of “unlawful coercion” on the night of 14 August in Stockholm. The court heard Mr Assange is accused of using his body weight to hold her down in a sexual manner.

The second charge alleged Mr Assange “sexually molested” Miss A by having sex with her without a condom when it was her “express wish” one should be used. The third charge claimed Mr Assange “deliberately molested” Miss A on August 18 “in a way designed to violate her sexual integrity”.

The fourth charge accused Mr Assange of having sex with a second woman, Miss W, on 17 August without a condom while she was asleep at her Stockholm home.

District Judge Riddle said: “This case is not, on the face of it, about WikiLeaks. It is an allegation in another European country of serious sexual offences alleged to have occurred on three separate occasions and involving two separate victims. These are extremely serious allegations. From that, it seems to me that if these allegations are true, then no one could argue the defendant should be granted bail.”

However he added: “If they are false, he suffers a great injustice if he is remanded in custody. At this stage in these proceedings, the nature and strength of the allegations is not known.”

Mr Assange’s solicitor, John Jones, said he agreed the case was not about WikiLeaks but was a “simple accusation” case with the right to bail.

He said: “In relation to the state of play in Sweden, it is important for the court to be aware of the background to this. Mr Assange has made repeated requests that the allegations against him be communicated to him in a language he understands. That has been ignored by the Swedish prosecutor. Another Swedish prosecutor dropped this case early on for lack of evidence and it was resurrected in Gothenburg rather than Stockholm.”

Another of Mr Assange’s lawyers, Mark Stephens, said he believed British authorities would go to extreme lengths to ensure his client was “perfectly comfortable” during his time in jail. While he is confident Mr Assange’s time behind bars will be brief, he said he did not want to appear to be “too cocky”.

“I think a lot of people, including the police, thought that he would get bail today. They were very surprised he didn’t,” he said.

Praising District Judge Howard Riddle’s assessment of the case, Mr Stephens said: “We are incredibly grateful to the judge for making it clear to the prosecutor that he thinks he wants to have a look at the evidence, to make assessments as to whether there is a real risk of conviction or not, because that will make a difference as to whether or not he wants to put him out on bail, or not, on the next occasion.”

Criticising Swedish authorities involved with the case, Mr Stephens said: “It’s a persecution, not a prosecution.”.

He maintained that while Mr Assange was not prepared to go to Sweden to face alleged sexual assault claims, his client was prepared to meet the Swedish prosecutor in England.

“That, I think, is a reasonable approach,” he said.

The pressure on WikiLeaks, which relies on online donations from a worldwide network of supporters to fund its work, continued after Visa and Mastercard suspended all payments to the website.

A spokesman for Visa E said: “Visa Europe has taken action to suspend Visa payment acceptance on WikiLeaks’ website pending further investigation into the nature of its business and whether it contravenes Visa operating rules.” A MasterCard spokesman said: “MasterCard is currently in the process of working to suspend the acceptance of MasterCard cards on WikiLeaks until the situation is resolved.”

Kristinn Hrafnsson, a WikiLeaks spokesperson, said: “WikiLeaks is operational. We are continuing on the same track as laid out before. Any development with regards to Julian Assange will not change the plans we have with regards to the releases today and in the coming days.”

The legal proceedings

Q Why is Mr Assange, an Australian citizen, facing legal proceedings in the UK when the allegations against him relate to events in Sweden?

A Under the European arrest warrant procedure any EU state can request the legal assistance of another EU country in the detention of a suspect wanted for an offence committed abroad.

Q Mr Assange’s lawyers say he is not on the run and has voluntarily surrendered to police. So why is he being held in prison?

A District Judge Howard Riddle, sitting at the City of Westminster magistrates’ court, refused Mr Assange’s application for bail because he decided there was a danger he might abscond.

Q What happens next?

A First his lawyers will return to court next week to try to secure his release on conditional bail. Eventually there will be an extradition hearing at which the Swedish prosecution authorities will present prima facie evidence to show there is case for Mr Assange to answer.

Q How long will the proceedings last?

A Mr Assange’s legal team are already preparing to challenge the extradition in the High Court in London. If they lose the case there, they can take it all the way to the Supreme Court, a process which could last many months.

Wikileaks and Media Disinformation

Posted in Blogroll on December 8, 2010 by Minimux

The same corporate media outlets that lied about WMDs and much else, the media of embedded journalists, think tank hacks, and career swindlers has now suddenly became a radical debunker of US imperialist lies, and yet this debunker of US lies is also corroborating US claims about the grave danger presented to civilisation from North Korea and Iran, two states from Bush’s Axis of Evil. How should we interpret this?

All the cables prove is that US state department officials ‘believe’ North Korea and Iran are a threat. It is highly likely that they do believe such things. But this does not mean that their beliefs correspond to reality. US officials also believe that America wants to spread democracy. It is highly likely that most US officials believe their own lies.

Such reported beliefs can be manipulated by real rogue states such as the United States and Israel for their own political purposes.

Israel and Wikileaks

Israel has been pushing the supposed connection between North Korea and Iran for some time. In 2006 the Israeli columnist with the Jerusalem Post, right-wing extremist Caroline Glick wrote an article calling for the bombing of Iran on the pretext that North Korea was supplying the Islamic Republic with long-range nuclear weapons. None of these claims have ever been independently verified.

The latest Wikileak has added grist to Glick’s belligerent mill. In an article on her blog entitled ‘The Wikileaks Challenge’ she writes

‘In spite of proof that North Korea is transferring advanced ballistic missiles to Iran through China, again confirmed by the illegally released documents, the US continues to push a policy of engagement based on a belief that there is value to China’s vote for sanctions against Iran in the UN Security Council. It continues to push a policy predicated on its unfounded faith that China is interested in restraining North Korea.’ (5)

Here the Wikileaks reports are accepted as constituting ‘proof’ that North Korea has long-range nuclear missiles capable of targeting European cities and that those missiles have been supplied to the Islamic Republic of Iran. While Miss Glick huffs and puffs about the ‘attack on America’ initiated by Assange, the real point of her article is that the US must crack down on dissident media at home and bomb Iran.

Glick summarises the Wikileaks problem thus:

‘THE MOST important question that arises from the entire WikiLeaks disaster is why the US refuses to defend itself and its interests. What is wrong with Washington? Why is it allowing WikiLeaks to destroy its international reputation, credibility and ability to conduct international relations and military operations? And why has it refused to contend with the dangers it faces from the likes of Iran and North Korea, Turkey, Venezuela and the rest of the members of the axis of evil that even State Department officers recognize are colluding to undermine and destroy US superpower status? ‘(6)

Glick calls Juan Cole, professor of history at the University of Michigan, a ‘conspiracy theorist’ for daring to claim in a recent article for the Guardian Newspaper that Israel was responsible for Saudi Arabia’s desire to have Iran bombed! This would be funny were it not from a writer who is the Deputy Managing Editor of the Jerusalem Post and Senior Fellow for Middle Eastern Affairs at the Centre for Security Policy in Washington DC.

It is well known that Saudi Arabia and Iran are enemies. Saudi Arabia fears the Iranian model of “Islamic democracy”. It also fears Iran’s growing economic and political power in the region. The Saudi oligarchy is propped up by Israel and the United States. These are well documented facts. But well documented facts must be denounced as ‘conspiracy theories’, the post-modern term for heresies.

One could argue that Wikileaks has, in fact, done Israel and US imperialism a favour. He has highlighted the problem of internet control and has also provided ‘proof’ that North Korea and Iran are a threat to the world. I am not claiming that Assange has done this deliberately to deceive the public. But the Israeli press is pushing the idea that these ‘revelations’ of US policy maker’s opinions constitute ‘proof’ of Iran’s threat to the world and internet censorship could soon become a reality.

Cables supposedly ‘leaked’ by an internet website containing such dangerous allegations that could serve as a pretext for a global nuclear war should be subjected to the most stringent expert analysis. This will be the job of the alternative media in the coming months as the corporate media is likely to prevent such ‘revelations’ as facts in an effort to drum up support for the annihilation of Iran and North Korea.

Spurious claims about connections between North Korea and the Islamic world have been made before. In 2009, the French journalist Guillaume Dasquié published an article in Intelligence Online, claiming that Hassan Nasrallah, leader of the Lebanese militant group Hezbollah had been trained in North Korea. The article, widely distributed throughout the US Congress, was later proved to be a hoax. (7)

In 2002, Dasquié and Jean Charles Brisard admitted having invented allegations implicating certain individuals from Saudi Arabia in the 911 terrorist attacks on New York. (8)

Professor Noam Chomsky of MIT has written an article for Znet with the heading ‘ Why Wikileaks won’t stop the war’(9). But his approach assumes that Wikileaks serves the function of stopping the war. While Wikileaks has revealed many US war crimes, the possibility of covert intelligence penetration of the whistle-blowing site cannot be overlooked.

The question that needs to be asked now is: whose interests does Wikileaks really serve? Wikileaks can be made serve the cause of peace if a full and critical analysis is carried out every time the corporate press misuses it to trick the public into supporting an imperialist agenda.

The three ‘enemies’ of America mentioned in this article Belarus, North Korea and Iran, all have one thing in common. They have largely state-owned economies. This is what makes them a ‘threat to international security’. The final phase in the War on Terrorism will be to destroy the last obstacles to total US economic and political control of the planet.

Wikileaks could yet become the disinformation tool used by Israel and the United States to justify a nuclear war, finally bringing about what the pentagon has referred to as ‘full spectrum dominance’. But it could also be a tool to undermine this project provided people read and analyse its so-called revelations with extreme caution, exposing their mass disseminated misuse.

Gearóid Ó Colmáin is a columnist in English and Gaelic with Metro Éireann, Ireland’s multicultural newspaper. His blog is at www.metrogael.blogspot.com . He can be contacted at gaelmetro@yahoo.ie

Notes

1 http://www.messenger.com.ge/issues/2249_december_6_2010/2249_econ_one.html 

2. Belarus as an object of Polish Security Concerns in Belarus at the Crossroads (Washington DC.Carnegie Endowment for International Peace.1999) p.41

3 http://www.zcommunications.org/wikileaks-releases-state-department-cables-by-christopher-hope 

4 North Korea (London/New York: The New Press,2004) p.47

5 http://www.carolineglick.com/e/2006/06/

6http://www.jpost.com/Headlines/Article.aspx?id=197228 

7http://www.voltairenet.org/article154278.html 

8 http://www.voltairenet.org/article143901.html 

9 http://zcommunications.org/why-wikileaks-won-t-stop-the-war-by-noam-chomsky 

Noam Chomsky: WikiLeaks Cables Reveal “Profound Hatred for Democracy on the Part of Our Political Leadership”

Posted in Blogroll on December 8, 2010 by Minimux

World-renowned political dissident and linguist Noam Chomsky discusses the release of more than 250,000 secret U.S. State Department cables by WikiLeaks.
November 30, 2010 |
Join our mailing list:
Sign up to stay up to date on the latest Civil Liberties headlines via email.
Petitions by Change.org|Get Widget|Start a Petition � Video of Amy Goodman’s interview with Noam Chomsky at the bottom of this article.

AMY GOODMAN: For reaction to the WikiLeaks documents, we’re joined by world renowned political dissident and linguist Noam Chomsky, Professor Emeritus at Massachusetts Institute of Technology, author of over a hundred books including his latest Hopes and Prospects. Forty years ago, Noam and Howard Zinn helped government whistleblower Daniel Ellsberg edit and release the Pentagon Papers that top-secret internal U.S. history of the Vietnam War.

Noam Chomsky joins us from Boston… Before we talk about WikiLeaks, what was your involvement in the Pentagon Papers? I don’t think most people know about this.

NOAM CHOMSKY: Dan and I were friends. Tony Russo, who also who prepared them and helped leak them. I got advanced copies from Dan and Tony and there were several people who were releasing them to the press. I was one of them. Then I- along with Howard Zinn as you mentioned- edited a volume of essays and indexed the papers.

AMY GOODMAN: So explain how, though, how it worked. I always think this is important- to tell this story- especially for young people. Dan Ellsberg- Pentagon official, top-secret clearance- gets this U.S. involvement in Vietnam history out of his safe, he Xerox’s it and then how did you get your hands on it? He just directly gave it to you?

NOAM CHOMSKY: From Dan Ellsberg and Tony Russo, who had done the Xeroxing and the preparation of the material.

AMY GOODMAN: How much did you edit?

NOAM CHOMSKY: Well, we did not modify anything. The papers were not edited. They were in their original form. What Howard Zinn and I did was — they came out in four volumes — we prepared a fifth volume, which was critical essays by many scholars on the papers, what they mean, the significance and so on. And an index, which is almost indispensable for using them seriously. That’s the fifth volume in the Beacon Press series.

AMY GOODMAN: So you were then one of the first people to see the Pentagon Papers?

NOAM CHOMSKY: Outside of Dan Ellsberg and Tony Russo, yes. I mean, there were some journalists who may have seen them, I am not sure.

AMY GOODMAN: What are your thoughts today? For example, we just played this clip of New York republican congress member Peter King who says WikiLeaks should be declared a foreign terrorist organization.

NOAM CHOMSKY: I think that is outlandish. We should understand — and the Pentagon Papers is another case in point — that one of the major reasons for government secrecy is to protect the government from its own population. In the Pentagon Papers, for example, there was one volume — the negotiations volume — which might have had a bearing on ongoing activities and Daniel Ellsberg withheld that. That came out a little bit later. If you look at the papers themselves, there are things Americans should have known that others did not want them to know. And as far as I can tell, from what I’ve seen here, pretty much the same is true. In fact, the current leaks are — what I’ve seen, at least — primarily interesting because of what they tell us about how the diplomatic service works.

AMY GOODMAN: The documents’ revelations about Iran come just as the Iranian government has agreed to a new round of nuclear talks beginning next month. On Monday, Israeli Prime Minister Benjamin Netanyahu said the cables vindicate the Israeli position that Iran poses a nuclear threat. Netanyahu said, “Our region has been hostage to a narrative that is the result of sixty years of propaganda, which paints Israel as the greatest threat. In reality, leaders understand that that view is bankrupt. For the first time in history, there is agreement that Iran is the threat. If leaders start saying openly what they have long been saying behind closed doors, with can make a real breakthrough on the road to peace,” Netanyahu said. Secretary of State Hillary Clinton also discussed Iran at her news conference in Washington. This is what she said:

HILARY CLINTON: I think that it should not be a surprise to anyone that Iran is a source of great concern, not only in the United States. What comes through in every meeting that I have- anywhere in the world- is a concern about Iranian actions and intentions. So, if anything, any of the comments that are being reported on allegedly from the cables confirm the fact that Iran poses a very serious threat in the eyes of many of her neighbors and a serious concern far beyond her region. That is why the international community came together to pass the strongest possible sanctions against Iran. It did not happen because the United States said, “Please, do this for us!” It happened because countries- once they evaluated the evidence concerning Iran’s actions and intentions- reached the same conclusion that the United States reached: that we must do whatever we can to muster the international community to take action to prevent Iran from becoming a nuclear weapons state. So if anyone reading the stories about these, uh, alleged cables thinks carefully what they will conclude is that the concern about Iran is well founded, widely shared, and will continue to be at the source of the policy that we pursue with like-minded nations to try to prevent Iran from acquiring nuclear weapons.

AMY GOODMAN: That was Secretary to Hillary Clinton yesterday at a news conference. I wanted to get your comment on Clinton, Netanyahu’s comment, and the fact that Abdullah of Saudi Arabia- the King who is now getting back surgery in the New York- called for the U.S. to attack Iran. Noam Chomsky?

NOAM CHOMSKY: That essentially reinforces what I said before, that the main significance of the cables that are being released so far is what they tell us about Western leadership. So Hillary Clinton and Benjamin Netanyahu surely know of the careful polls of Arab public opinion. The Brookings Institute just a few months ago released extensive polls of what Arabs think about Iran. The results are rather striking. They show the Arab opinion holds that the major threat in the region is Israel — that’s 80. The second major threat is the United States — that’s 77. Iran is listed as a threat by 10%.

With regard to nuclear weapons, rather remarkably, a majority — in fact, 57 – say that the region would have a positive effect in the region if Iran had nuclear weapons. Now, these are not small numbers. 80, 77, say the U.S. and Israel are the major threat. 10 say Iran is the major threat. This may not be reported in the newspapers here — it is in England — but it’s certainly familiar to the Israeli and U.S. governments, and to the ambassadors. But there is not a word about it anywhere. What that reveals is the profound hatred for democracy on the part of our political leadership and the Israeli political leadership. These things aren’t even to be mentioned. This seeps its way all through the diplomatic service. The cables to not have any indication of that.

When they talk about Arabs, they mean the Arab dictators, not the population, which is overwhelmingly opposed to the conclusions that the analysts here — Clinton and the media — have drawn. There’s also a minor problem; that’s the major problem. The minor problem is that we don’t know from the cables what the Arab leaders think and say. We know what was selected from the range of what they say. So there is a filtering process. We don’t know how much it distorts the information. But there is no question that what is a radical distortion is — or, not even a distortion, a reflection — of the concern that the dictators are what matter. The population does not matter, even if it’s overwhelmingly opposed to U.S. policy.

There are similar things elsewhere, such as keeping to this region. One of the most interesting cables was a cable from the U.S. ambassador in Israel to Hillary Clinton, which described the attack on Gaza — which we should call the U.S./Israeli attack on Gaza — December 2008. It states correctly there had been a truce. It does not add that during the truce — which was really not observed by Israel — but during the truce, Hamas scrupulously observed it according to the Israeli government, not a single rocket was fired. That’s an omission. But then comes a straight lie: it says that in December 2008, Hamas renewed rocket firing and therefore Israel had to attack in self-defense. Now, the ambassador surely is aware that there must be somebody in the American Embassy who reads the Israeli press — the mainstream Israeli press — in which case the embassy is surely aware that it is exactly the opposite: Hamas was calling for a renewal of the cease-fire. Israel considered the offer and rejected it, preferring to bomb rather than have security. Also omitted is that while Israel never observed the cease-fire — it maintained the siege in violation of the truce agreement — on November 4, the U.S. election 2008, the Israeli army invaded Gaza, killed half a dozen Hamas militants, which did lead to an exchange of fire in which all the casualties, as usual, were Palestinian. Then in December, Hamas — when the truce officially ended — Hamas called for renewing it. Israel refused, and the U.S. and Israel chose to launch the war. What the embassy reported is a gross falsification and a very significant one since- since it has to do the justification for the murderous attack- which means either the embassy hasn’t a clue to what is going on or else they’re lying outright.

AMY GOODMAN: And the latest report that just came out — from Oxfam, from Amnesty International, and other groups — about the effects of the siege on Gaza? What’s happening right now?

NOAM CHOMSKY: A siege is an act of war. If anyone insists on that, it is Israel. Israel launched two wars — ’56 and ’67 — in part on grounds its access to the outside world was very partially restricted. That very partial siege they considered an act of war and justification for — well, one of several justifications — for what they called “preventive” — or if you like, preemptive — war. So they understand that perfectly well and the point is correct. The siege is a criminal act, in the first place. The Security Council has called on Israel to lift it, and others have. It’s designed to — as Israeli officials have have stated — to keep the people of Gaza to minimal level of existence. They do not want to kill them all off because that would not look good in international opinion. As they put it, “to keep them on a diet.” This justification, this began very shortly after the official Israeli withdrawal. There was an election in January 2006 after the only free election in the Arab world — carefully monitored, recognized to be free — but it had a flaw. The wrong people won. Namely Hamas, which the U.S. did not want it and Israel did not want. Instantly, within days, the U.S. and Israel instituted harsh measures to punish the people of Gaza for voting the wrong way in a free election.

The next step was that they — the U.S. and Israel — sought to, along with the Palestinian Authority, try to carry out a military coup in Gaza to overthrow the elected government. This failed — Hamas beat back the coup attempt. That was July 2007. At that point, the siege got much harsher. In between come in many acts of violence, shellings, invasions and so on and so forth. But basically, Israel claims that when the truce was established in the summer 2008, Israel’s reason for not observing it and withdrawing the siege was that there was an Israeli soldier — Gilad Shalit — who was captured at the border. International commentary regards this as a terrible crime. Well, whatever you think about it, capturing a soldier of an attacking army — and the army was attacking Gaza — capturing a soldier of an attacking army isn’t anywhere near the level of the crime of kidnapping civilians. Just one day before the capture of Gilad Shalit at the border, Israeli troops had entered Gaza, kidnapped two civilians — the Muammar Brothers — and spirited them across the border. They’ve disappeared somewhere in Israel’s prison system, which is where hundreds, maybe a thousand or so people are sometimes there for years without charges. There are also secret prisons. We don’t know what happens there.

This alone is a far worse crime than the kidnapping of Shalit. In fact, you could argue there was a reason why was barely covered: Israel has been doing this for years, in fact, decades. Kidnapping, capturing people, hijacking ships, killing people, bringing them to Israel sometimes as hostages for many years. So this is regular practice; Israel can do what it likes. But the reaction here and the rest of the world of regarding the Shalit kidnapping- well, not kidnapping, you don’t kidnap soldiers- the capture of a soldier as an unspeakable crime, justification for maintaining and murders siege… that’s disgraceful.

AMY GOODMAN: So you have Amnesty International, Oxfam, Save the Children, and eighteen other aide groups calling on Israel to unconditionally lift the blockade of Gaza. And you have in the WikiLeaks release a U.S. diplomatic cable — provided to The Guardian by WikiLeaks — laying out, “National human intelligence collection directive: Asking U.S. personnel to obtain details of travel plans such as routes and vehicles used by Palestinian Authority leaders and Hamas members.” The cable demands, “Biographical, financial, by metric information on key PA and Hamas leaders and representatives to include the Young Guard inside Gaza, the West Bank, and outside,” it says.

NOAM CHOMSKY: That should not come as much of a surprise. Contrary to the image that is portrayed here, the United States is not an honest broker. It is a participant, a direct and crucial participant, in Israeli crimes, both in the West Bank and in Gaza. The attack in Gaza was a clear case in point: they used American weapons, the U.S. blocked cease-fire efforts, they gave diplomatic support. The same is true of the daily ongoing crimes in the West Bank, and we should not forget that. Actually, in Area C- the area of the West Bank that Israel controls — conditions for Palestinians have been reported by Save The Children to be worse than in Gaza. Again, this all takes place on the basis of crucial, decisive, U.S., military, diplomatic, economic support; and also ideological support — meaning, distorting the situation, as is done again dramatically in the cables.

The siege itself is simply criminal. It is not only blocking desperately needed aid from coming in, it also drives Palestinians away from the border. Gaza is a small place, heavily and densely overcrowded. And Israeli fire and attacks drive Palestinians away from the Arab land on the border, and also drive fisherman in from Gaza into territorial waters. They compelled by Israeli gunboats — all illegal, of course — to fish right near the shore where fishing is almost impossible because Israel has destroyed the power systems and sewage systems and the contamination is terrible. This is just a stranglehold to punish people for being there and for insisting on voting the wrong way. Israel decided, “We don’t want this anymore. Let’s just get rid of them.”

We should also remember, the U.S./Israeli policy — since Oslo, since the early 1990’s — has been to separate Gaza from the West Bank. That is in straight violation of the Oslo agreements, but it has been carried out systematically, and it has a big effect. It means almost half the Palestinian population would be cut off from any possible political arrangement that would be made. It also means Palestine loses its access to the outside world — Gaza should have and can have airports and seaports. Right now, Israel has taken over about 40% of the West Bank. Obama’s latest offers have granted even more, and they’re certainly planning to take more. What is left is just canonized. It’s what the planner, Ariel Sharon called Bantustans. And they’re in prison, too, as Israel takes over the Jordan Valley and drives Palestinians out. So these are all crimes of a piece.

The Gaza siege is particularly grotesque because of the conditions under which people are forced to live. I mean, if a young person in Gaza — student in Gaza, let’s say — wants to study in a West Bank university, they can’t do it. If it a person in Gaza needs advanced medical training or treatment from an East Jerusalem hospital where the training is available, they can’t go! Medicines are held back. It is a scandalous crime, all around.

AMY GOODMAN: What do you think the United States should do in this case?

NOAM CHOMSKY: What the United States should do is very simple: it should join the world. I mean, there are negotiations going on, supposedly. As they are presented here, the standard picture is that the U.S. is an honest broker trying to bring together two recalcitrant opponents — Israel and Palestinian Authority. That’s just a charade.

If there were serious negotiations, they would be organized by some neutral party and the U.S. and Israel would be on one side and the world would be on the other side. And that is not an exaggeration. It should not be a secret that there has long been an overwhelming international consensus on a diplomatic, political solution. Everyone knows the basic outlines; some of the details you can argue about. It includes everyone except the United States and Israel. The U.S. has been blocking it for 35 years with occasional departures — brief ones. It includes the Arab League. It includes the Organization of Islamic States. which happens to include Iran. It includes every relevant actor except the United States and Israel, the two rejectionist states. So if there were to be negotiations that were serious, that’s the way they would be organized. The actual negotiations barely reach the level of comedy. The issue that’s being debated is a footnote, a minor footnote: expansion of settlements. Of course it’s illegal. In fact, everything Israel is doing in the West Bank and Gaza is illegal. That hasn’t even been controversial since 1967. …

AMY GOODMAN: I want to read for you now what Sarah Palin tweeted – the former Alaskan governor, of course, and Republication vice presidential nominee. This is what she tweeted about WikiLeaks. Rather, she put it on Facebook. She said, “First and foremost, what steps were taken to stop WikiLeaks’ director Julian Assange from distributing this highly-sensitive classified material, especially after he had already published material not once but twice in the previous months? Assange is not a journalist any more than the editor of the Al Qaeda’s new English-language magazine “Inspire,” is a journalist. He is an anti-American operative with blood on his hands. His past posting of classified documents revealed the identity of more than 100 Afghan sources to the Taliban. Why was he not pursued with the same urgency we pursue Al Qaeda and Taliban leaders?” Noam Chomsky, your response?

NOAM CHOMSKY: That’s pretty much what I would expect Sarah Palin to say. I don’t know how much she understands, but I think we should pay attention to what we learn from the leaks. … Perhaps the most dramatic revelation, or mention, is the bitter hatred of democracy that is revealed both by the U.S. Government – Hillary Clinton, others – and also by the diplomatic service.

To tell the world – well, they’re talking to each other — to pretend to each other that the Arab world regards Iran as the major threat and wants the U.S. to bomb Iran, is extremely revealing, when they know that approximately 80% of Arab opinion regards the U.S. and Israel as the major threat, 10% regard Iran as the major threat, and a majority, 57%, think the region would be better off with Iranian nuclear weapons as a kind of deterrent. That is does not even enter. All that enters is what they claim has been said by Arab dictators – brutal Arab dictators. That is what counts.

How representative this is of what they say, we don’t know, because we do not know what the filtering is. But that’s a minor point. But the major point is that the population is irrelevant. All that matters is the opinions of the dictators that we support. If they were to back us, that is the Arab world. That is a very revealing picture of the mentality of U.S. political leadership and, presumably, the lead opinion, judging by the commentary that’s appeared here, that’s the way it has been presented in the press as well. It does not matter with the Arabs believe.

AMY GOODMAN: Your piece, Outrage Misguided. Back to the midterm elections and what we’re going to see now. Can you talk about the tea party movement?

NOAM CHOMSKY: The Tea Party movement itself is, maybe 15% or 20% of the electorate. It’s relatively affluent, white, nativist, you know, it has rather traditional nativist streaks to it. But what is much more important, I think, is the outrage. Over half the population says they more or less supported it, or support its message. What people are thinking is extremely interesting. I mean, overwhelmingly polls reveal that people are extremely bitter, angry, hostile, opposed to everything.

The primary cause undoubtedly is the economic disaster. It’s not just the financial catastrophe, it’s an economic disaster. I mean, in the manufacturing industry, for example, unemployment levels are at the level of the Great Depression. And unlike the Great Depression, those jobs are not coming back. U.S. owners and managers have long ago made the decision that they can make more profit with complicated financial deals than by production. So finance – this goes back to the 1970s, mainly Reagan escalated it, and onward- Clinton, too. The economy has been financialized.

Financial institutions have grown enormously in their share of corporate profits. It may be something like a third, or something like that today. At the same time, correspondingly, production has been exported. So you buy some electronic device from China. China is an assembly plant for a Northeast Asian production center. The parts and components come from the more advanced countries – and from the United States, and the technology . So yes, that’s a cheap place to assemble things and sell them back here. Rather similar in Mexico, now Vietnam, and so on. That is the way to make profits.

It destroys the society here, but that’s not the concern of the ownership class and the managerial class. Their concern is profit. That is what drives the economy. The rest of it is a fallout. People are extremely bitter about it, but don’t seem to understand it. So the same people who are a majority, who say that Wall Street is to blame for the current crisis, are voting Republican. Both parties are deep in the pockets of Wall Street, but the Republicans much more so than the Democrats.

The same is true on issue after issue. The antagonism to everyone is extremely high – actually antagonism – the population doesn’t like Democrats, but they hate Republicans even more. They’re against big business. They’re against government. They’re against Congress. They’re against science –

AMY GOODMAN: Noam, I wanted ask if you were President Obama’s top adviser, what would you tell him to do right now?

NOAM CHOMSKY: I would tell him to do what FDR did when big business was opposed to him. Help organize, stimulate public opposition and put through a serious populist program, which can be done. Stimulate the economy. Don’t give away everything to financiers. Push through real health reform. The health reform that was pushed through may be a slight improvement but it leaves some major problems untouched. If you’re worried about the deficit, pay attention to the fact that it is almost all attributable to military spending and this totally dysfunctional health program.

Julian Assange in the Honey Trap

Posted in Blogroll on December 8, 2010 by Minimux

 

How they snared him

by Justin Raimondo, December 08, 2010

Anyone who doubts the unmitigated evil of the US government and its international enablers has only to look at the disgraceful persecution of Julian Assange to see Washington’s brazen malevolence in full flower. As the WikiLeaks web site continues to release daily examples of US incompetence, bullying, venality, and corruption, the response from the Imperial City has been a coordinated campaign of lies, smears, and what can only be described as utter filth.

This outpouring of satanic bile has been disgorged onto the front pages of the world’s newspapers in retaliation for the “crime” of revealing the everyday machinations and cynical maneuverings of the US government as it rampages, loots, and murders its way across the face of the earth. In doing so, Assange and WikiLeaks have violated the first principle of the new world order, which is that they (the governments of the world) have every right to know what we’re saying in the privacy of our own homes: in our emails, our phone conversations, and anywhere else we (falsely) believe we’re free from prying eyes and ears. However, we have no right to know what they are doing, in our name – with our tax dollars – and to believe otherwise is “treason.”

For these people – the scum who inhabit the corridors of power – character assassination is an art, to be practiced with a fine attention to detail: and, to be sure, in this case they have outdone themselves. While sex is a weapon they’ve often used to hunt down their quarry, they can’t nowadays merely expose the intimate details of their victims’ personal life. In a society that resembles the last days of the Roman empire, where what we used to think of as immorality is rife, the smear artists have to give their revelations a more specific character, and in Assange’s case they have given us a textbook example.

The “charges” against Assange, made by two women – Anna Ardin, a “feminist” harridan who works as the “gender equity” officer at Uppsala University, and Sophia Wilen, a sometime photographer and former Assange groupie with stalkerish tendencies – are quite murky. Assange had come to Sweden at Ardin’s invitation, or, rather, at the invitation of the “Brotherhood,” a Christian faction of Sweden’s Social Democratic party for which Ardin is the press secretary. He was staying at her home because she was supposedly going to be gone for a few days with her family, but Ardin returned early, for some reason, and they agreed to cohabit on a temporary basis. Ardin avers that she had agreed to (or perhaps – who knows? – even initiated) consensual sex with Assange, and so, as the Daily Mail reported, “they had sexual relations, but there was a problem with the condom – it had split. She seemed to think that he had done this deliberately but he insisted that it was an accident.” Ardin also claims Assange used the weight of his body to keep her immobilized – being a feminist, she likes to be on top.

However, she gave no indication of distress, either that day or the next: instead, she threw a party for Assange at her home. That evening Assange gave a seminar at the Stockholm headquarters of a trade union, and in the front row sat Sophia Wilen, an employee of the local Social Democratic-controlled council in the northern town of Enkoping. Wilen later told police that she had seen Assange on television and had become “obsessed” by him. When she heard he was speaking in Sweden, she called the “Brotherhood” of Social Democratic Christians to volunteer to help at the event, but was turned down: she came anyway, of course, and was soon glomming on to Assange with all the persistence of a blond and very leggy tick – the kind that give you Lyme Disease.

Loitering outside the venue in her shocking pink jumper, she approached Assange and two others who were going to a local café, and managed to get herself invited to join. One of the participants in the ensuing conversation describes her as “certainly an odd character,” who seemed out of place. Aggressively pursuing Assange, she sat there looking at him adoringly, and there was – say witnesses – what seemed to be a mutual attraction. After lunch, the two went out to a movie, and later on, when Assange said he had to go – Ardin was planning a crayfish party for him, a traditional Swedish-style event – she asked if she could see him again. He readily agreed. Later, at the party, Ardin would Tweet to her friends that she was “’Sitting outside … nearly freezing, with the world’s coolest people. It’s pretty amazing!” She later tried to erase this record of her short-lived joy, but the internet knows all, sees all, now doesn’t it?

The honey-trap was nearly sprung, but there were a few more details to take care of. As Ardin was stuffing her face with crayfish and getting drunk, Assange was on the phone with Sophia. They arranged to meet in Stockholm. As the Daily Mail reported:

“When they did meet they agreed to go to her home in Enkoping, but he had no money for a train ticket and said he didn’t want to use a credit card because he would be ‘tracked’ (presumably, as he saw it, by the CIA or other agencies).”

Little did he suspect that was already being tracked. Sophia generously offered to buy him a ticket. When they got to her Enkoping digs, they had sex: he used a condom. The next morning, they again had sex, this time without a condom. They went out for breakfast, with no sign of displeasure or even the barest hint of “rape” coming from her side of the fence: she told him to stay in touch, and he said he would. She then bought him a return ticket to Stockholm, and he was gone – but hardly forgotten.

Here is where the story gets murky: for some reason not readily apparent to me, Sophia called Anna, and the two got to talking: the former confided she had been sleeping with Assange. Anna was furious: here is a woman who had earlier posted on her personal blog a rather scary “Seven Steps to Legal Revenge,” which reads like it might have been written by Valerie Solanis.

Sitting alone in Enkoping, wondering why Assange didn’t call, Sophia had been simmering in her own resentments, and Ardin was more than happy to give her the opportunity to vent. Together they concocted a plan to go to the police: initially the focus was on Sophia’s obsession with the possibility she might have contracted AIDS from the unprotected sex. The two of them went to a police station and asked if it was possible to force Assange to undergo a test for STDs.

It was the weekend, and the regular prosecutor was off duty: a substitute prosecutor listened to their story and decided, on her own authority, to go after Assange. The police combed the entertainment district of Stockholm, looking for him: to no avail. This indictment was later rescinded, however, by the regular prosecutor, due to the fact that, as the office put it, there was “no evidence” a crime had been committed.

The two had leaked the story to the Swedish tabloid Expressen, which relentlessly blared it on their front pages. Pretty professional work for a couple of alleged groupies. Indeed, Ardin is a former Swedish embassy official who served in Buenos Aires, and Havana: she was reportedly asked to leave Cuba after her interactions with Cuban exile groups linked to the CIA.

With those kinds of connections, Ardin was not easily deterred by the dropping of the charges. In order to construct a legal case against Assange, she recruited Claes Borgström, a lawyer and the former “Equal Opportunities Ombudsman” for “gender equity issues.” He has been working assiduously to expand the legislative reach of high feminist theory, including by extending the legal definition of rape. According to this new manifestation of extreme political correctness – which is only possible, one hopes, in dreary, suicide-prone Sweden – rape need not necessarily involve physical coercion. There is also, these professional victimologists believe, a form of “psychological” coercion enforced by the unequal “power relations” between the sexes.

In league with a third prosecutor, Marianne Ny, Borgström succeeded in having the case re-opened in order to advance this unique legal innovation: the concept of “rape” without physical coercion. As Assange’s Australian lawyer, James Caitlin, puts it:

“Consensual sex can be rape, according to Borgström and Ny – but the alleged victims don’t decide – they do. ”The new laws which establish these ‘precedents’ are not yet on the books – but it’s Marianne Ny’s intention to make the Assange affair into a test case for that purpose. ”In other words: Marianne Ny wants to try Julian Assange for something that wasn’t a crime when it took place.”

So much for the “legal” case against Assange. It’s a put up job, pure and simple, so brazen that one wonders how anyone – let alone a sitting judge outside of Zimbabwe, or Saudi Arabia – can entertain it with a straight face. And yet a British judge has indeed upheld the validity of the international arrest warrant, which went straight to the top of Interpol’s agenda as soon as it was issued: in the new world order, “sex by surprise” is on a par with being a mass murderer. In spite of having pledges of funding from prominent supporters, the judge denied Assange bail: and so the governments of the world have him where they want him – behind bars.

In their quest to destroy WikiLeaks, the Powers That Be are destroying their own credibility – such as it is, or was. This disgusting frame-up discredits them much more than it does Assange, or WikiLeaks. As the corporate extensions of the US government – PayPal, MasterCard, Visa, etc., ad nauseam – shut their doors to WikiLeaks, and COINTELPRO-style disruption of its operations continues unabated, the fact that the site is still up – indeed, it’s much easier to access now than ever before – indicates the battle is far from over.

What this all means is that the future of the internet is being decided, right here, right now: if the worldwide alliance of tyrants and crooks succeeds in shutting WikiLeaks down, the rest of us are doomed. If they can get away with this, they can get away with anything – including legislation regulating content. That’s where we’re headed, unless the authoritarian assault – led by Senators Joe Lieberman and Dianne Feinstein, Fox News (excepting Judge Napolitano, of course), and neocons left and right – is repulsed.

There is no more important task for antiwar activists, civil libertarians, and all those who treasure freedom than the defense of WikiLeaks, and Julian Assange. That’s why the Amazon boycott is so important. That’s why we’ve got to work tirelessly to free Assange. That’s why we must never give in to the Liebermans, the Feinsteins, and the Fox News lynch mob. As the commies would say: No Pasaran!

The extradition of Assange to Sweden would signal the final phase of Britain’s long slow slide into authoritarianism, an outcome that seems nearly inevitable for a society that imposes a draconian “speech code,” and has its population under constant surveillance. From there the plan is obviously to jail him in Sweden until the US can cook up a “legal” rationale to have him extradited for trial in the US – perhaps as a material witness in the case of Bradley Manning, suspected of providing the diplomatic cables – and the Afghan and Iraq war logs – to WikiLeaks.

Truth is on trial – and a conviction would be fatal not only to WikiLeaks, but for the cause of liberty itself. This is an issue that the ruling elite is counting on to plug the giant hole in their armor called the internet. We can’t afford to lose this one – at least without inflicting some pretty heavy damage on the enemy.

Assange is the first high-profile political prisoner is a new age of repression and fear. If he is martyred to the cause of liberty, let his bravery and determination serve as an example and an inspiration to us all. But we don’t need any more martyrs: we need living activists, like Assange, who are willing to take on the States of the world. We must tirelessly work to free him, and in the process free ourselves.

NOTES IN THE MARGIN 

Here is the Facebook page of Swedish prosecutor Marianne Ny, who revived the previously dropped charges of “rape” against Assange, featuring a photo of her canoodling with someone who looks very much like Sophia Wilen, one  of Assange’s accusers.  

Justice may be blind, but we sure as heck aren’t….

Read more by Justin Raimondo

Wikileaks: behind the “sex scandal” against Assange, a Cuban “collaborator” of the CIA

Posted in Blogroll on December 7, 2010 by Minimux

Behind the alleged sex scandal which attempts to discredit the Wikileaks web site owner whose revelations are scaring the State Department, is a “collaborator” Cuban CIA linked to Carlos Alberto Montaner, who became known in the past for his activism “Castro.”
As the wires reported the matter occurred in Sweden, Ardin would be the “applicant official” with her friend Sophia Assange Wilden who was allegedly the first to complain of “abuse” with police.
The lawsuit, something strange but apparently according to Swedish law, the crime is not to have had sex without a condom, and having had two romantic encounters in a week with each of the alleged victims.
After leaving Cuba, Anna Ardin became known for his vitriolic literature web sites funded by USAID and managed by the CIA, such as Misceleanas of Cuba, Cuban-owned Solenzal Alexis Gainza.
De Gainza contributor and U.S. intelligence, Ardin morphed into “expert” media such as Dagens Nyheter Swedish and SVT. He got involved then figure ruling Social-Democratic.
In 2007, he founded the club “gay” Queer-klubb Feber of Gotland, a Swedish island situated 60 kilometers from the coast, a haven for the so-called celebrities.
Born in Havana, Alexis Gainza, Ardin’s mentor, living in Sweden since 1991 (in Stockholm, since 1993) and found a lucrative market in the Scandinavian world of disinformation.
Stop franchise for this territory of the Cuban Liberal Union of the old agent Carlos Alberto Montaner, a terrorist fugitive from Cuban justice.
Gaines is also linked to the German International Society for Human Rights, “better known by its German acronym IGFM – Internationale Gesellschaft für Menschenrechte (IGFM). With known ties to German and American intelligence, the IGFM kept in their ranks former Nazis, Martin Ludwig both lawyers and former soldiers as well as Dieter von Glahn.
The current spokesman and president of the IGFM, Martin Lessenthin, works closely with the party Justice First Venezuelan coup leader Alejandro Pena Esclusa terrorist.
First Justice is the lead partner in Venezuela, the International Republican Institute, an organization subsidized right-wing coup of millions by the National Endowment for Democracy.
The news of the alleged scandal Assange first appeared in Newsweek, Aug. 25 just days after a leak that hit the Pentagon documents.

Fed’s Global Pawnshop Hands Out $9 Trillion in Short-term Loans to 18 Financial Institutions

Posted in Blogroll on December 7, 2010 by Minimux

Federal Reserve made $9 trillion in short-term loans to only 18 financial institutions. Since 2000 the US dollar has fallen by 33 percent. The hidden cost of the bailouts.

The Federal Reserve released a stunning report showing the details of bailouts that occurred during the peak of the credit crisis. They won’t call it “bailouts” but giving money when others won’t is exactly that. What the report shows is that the Fed operated as a global pawnshop taking in practically anything the banks had for collateral.&

What is even more disturbing is that the Federal Reserve did not enact any punitive charges to these borrowers so you had banks like Goldman Sachs utilizing the crisis to siphon off cheap collateral. The Fed is quick to point out that “taxpayers were fully protected” but mention little of the destruction they have caused to the US dollar. This is a hidden cost to Americans and it also didn’t help that they were the fuel that set off the biggest global housing bubble ever witnessed by humanity. A total of $9 trillion in short-term loans were made to 18 financial institutions. Still think the banking bailout didn’t happen or cost us nothing? Let us first look at the explosion of assets on the Fed balance sheet.

The Fed is still carrying longer term debt on its books that shouldn’t be there:

The Fed typically would carry under $900 billion in high quality government Treasuries on its balance sheet. But today it is carrying roughly $2.4 trillion in “assets” and the biggest part of this is made up of questionable mortgages:

Over $1 trillion of mortgage backed securities sit on the Fed balance sheet and QE2 is only starting.

Other tens of billions of dollars are sitting in the balance sheet as well that include failed commercial real estate projects and defunct shopping centers around the country. Of course the Fed would like to give the appearance that all is well but no one makes $9 trillion in short-term loans without undergoing serious problems. And doesn’t it bother the public that an institution that represents our banking system essentially bailed out the world at the expense of US taxpayers (without asking by the way) and now taxpayers are having to deal with a toxic banking system and a jobs market that is hammered into the ground?

This concern was raised:

“(NY Times) But Senator Bernard Sanders, independent of Vermont, who wrote a provision in the law requiring the disclosures by Dec. 1, reached a different conclusion.

“After years of stonewalling by the Fed, the American people are finally learning the incredible and jaw-dropping details of the Fed’s multitrillion-dollar bailout of Wall Street and corporate America,” he said. “Perhaps most surprising is the huge sum that went to bail out foreign private banks and corporations.”

Senator Sanders is absolutely right. Did you also know that billions of dollars went to foreign central banks as well? We all know the issues going on with the European Zone today but the Fed never mentioned this during the bailout frenzy. Don’t be fooled when the Fed says there is no cost associated. 26 million Americans are unemployed or underemployed and 44 million Americans are on food assistance. The US dollar has done the following in the last decade:

Yet this is the response:

“In a statement accompanying the disclosure, the Fed said it had fully protected taxpayers. “The Federal Reserve followed sound risk-management practices in administering all of these programs, incurred no credit losses on programs that have been wound down, and expects to incur no credit losses on the few remaining programs,” it said.”

Sound risk-management? The entire purpose is to destroy the currency in a slow methodical process and inflate away the debt. Yet there is a cost to this born by the many for the few. Over the last decade it has meant the depreciation of the dollar by 33 percent. That is a real cost. It might not be a big deal if you hold money in foreign countries but most Americans only have a paycheck that is issued in US dollars. The actual amount of Fed loans is simply jaw dropping:

“At home, from March 2008 to May 2009, the Fed extended a cumulative total of nearly $9 trillion in short-term loans to 18 financial institutions under a credit program.

Previously, the Fed had only revealed that four financial firms had tapped the special lending program, and did not reveal their identities or the loan amounts.

The data appeared to confirm that Citigroup, Merrill Lynch and Morgan Stanley were under severe strain after the collapse of Lehman Brothers in September 2008. All three tapped the program on more than 100 occasions.”

Keep in mind that unemployment insurance will cost roughly $4 billion per month and most of this money will go back into the economy. Congress is stalling on this yet the media is completely silent on the $9 trillion in Federal Reserve loans? This should be the headline story over and over until people realize how big the bailout was (and how this false dichotomy is being used as propaganda in the media as if $4 billion a month is going to bankrupt the system). The banking elites just want to shift the blame to “poor” people while ignoring the elephant in the room which are the trillions of dollars in Fed loans.

Everyone got in the game:

“Big institutional investors, like Pimco, T. Rowe Price and BlackRock, borrowed from the TALF program. So did the California Public Employees Retirement System, the nation’s largest public pension fund, and several insurers and university endowments.”

Source: New York Times

Every big player got into this and you will recall the rhetoric that it was for small businesses and the American consumer. None of that happened. Banks are still sitting on incredibly large excess reserves:

The Fed is operating without any checks and balances from Congress and another trillion dollar exposure has come out with the mainstream media channels like ABC, CBS, and NBC all remaining silent. Can’t interrupt Wheel of Fortune right?

BUY OR SELL – Is silver sustainable at $30 an ounce?

Posted in Blogroll on December 7, 2010 by Minimux

BUY OR SELL – Is silver sustainable at $30 an ounce?

NEW YORK (Reuters) – As silver climbed above $30 an ounce on Monday for the first time since 1980, traders and analysts were cautiously bullish about the metal’s ability to keep outperforming gold and stay at 30-year highs.

Momentum traders and retail investors have been piling into the white metal this year, which has risen with gold as a safe haven amid a eurozone debt crisis and the prospect of further monetary easing by the Federal Reserve and central banks.

Silver is also becoming a favorite play for investors betting on a swift economic recovery and greater demand for industrial commodities. Traditionally, about half of the world’s silver production is consumed by manufacturers and other industrial users.

While gold has grabbed investors’ attention this year with its rally to record highs at almost $1,430 an ounce, silver has quietly outpaced those gains on a percentage basis. A $100 investment in silver on Jan. 1 would now be worth about $180

versus $130 for a similar investment in gold.

The rally in silver — up nearly 80 percent this year versus gold’s 30 percent gain — has narrowed the gold-to-silver ratio to less than 48, its lowest level since

the first quarter of 2007 and a point at which more analysts were beginning to call silver overvalued.

At over $30 an ounce, silver is at its highest level since 1980 when a physical squeeze briefly sent it above $50 an ounce in the Hunt Brothers’ infamous attempt to corner the market.

The Hunts were later convicted of conspiring to manipulate silver prices.

Is the traditionally volatile and speculative silver sustainable at 30-year highs?

BUY

Frank McGhee, head precious metals trader at Chicago-based Integrated Brokerage Services LLC, said silver prices are going to stay at high levels and prices could rise as high as $35 an ounce.

“The market is extremely well bid. The funds are obviously adding the support underneath the market, but the continued

Chinese expansion and virtually what would have been considered run-away inflation in the U.S., if those (China) numbers were occurring here, are continuing to drive consumption.

“You’ve got dwindling above-ground stocks, you’ve got tremendous interest in the market, you’ve got the Fed now talking about QE3 … all of that has silver still attempting to get back to the equivalent level as it should have been with gold at $1,400 an ounce,” he said.

Physical silver held by the world’s largest silver-backed exchange-traded fund, iShares Silver Trust , held near an all-time high of 10,893.68 tonnes set on Nov. 23.

The U.S. Mint’s American Eagle silver coins sales rose to a record above 4 million ounces in November, as economic uncertainty prompted individual investors to bet on silver and gold as safe havens.

“We’re looking at silver moving into a deficit position next year, mainly because we continue to see the global recovery continuing and that means the industrial part for

silver will grow,” said Bart Melek, global commodity strategist at BMO Nesbitt Burns in Toronto.

In November, respected precious metals research and consulting firm GFMS said silver is likely to rise above $30 an ounce in 2011, lifted by strong investment buying and recovering fabrication demand.

For 2010, silver fabrication demand is expected to rise 10 percent as a recovery in industrial uses, record coin demand and slight growth in jewelry off-take offset losses in photography and silverware fabrication.

“There’re a few factors — strong industrial demand, and mine production is not exactly setting the world on fire. Most silver is mined as a by-product of copper/zinc/lead mine

production. Copper production has been disappointing, so perhaps that has affected silver output too,” said David Thurtell, an analyst at Citigroup in London.

SELL

Other analysts said there are few fundamental reasons to support silver’s sharp rally, and the speculative commodity could sell off quickly similar to its previous rallies.

“I am not sure what has moved this market to this 30-year high. To the best of my recollection, the use of silver has diminished over the years for different products such as photography and in the X-ray field,” said George Nickas, a broker of FC Stone in New York.

“I don’t know if it’s (related to) the inquiry by the CFTC on the short positions of the two major banks that it has been studying over the last two years,” he said.

Late in October, JPMorgan Chase & Co and HSBC Holdings Plc were hit by two complaints from traders

accusing the banks of conspiring to drive down silver prices. They claimed that the firms reaped up to hundreds of millions of dollars of illegal profits.

Some precious metals advocacy groups claimed that governments, central banks and commercial banks have colluded to keep the price of silver weak. However, conventional investors view that as a conspiracy theory with very little evidence to back up the claim.

“These metals are getting overbought, but they seem to be in their own upside world. The fact that Bernanke said the economy may need more stimulus, and with the European debt crisis and concern about European currencies, people are buying

precious metals as an alternative to currencies,” said Donald Selkin, chief market strategist of National Securities Corp in New York.

“Rightly or wrongly, there is very good strength there. A lot of hedge funds have big positions in these metals, and their price has become a function of investment demand rather than demand for their usage. They’ve become investment vehicles

with the ETFs and other investment vehicles. But, to me, it seems like a very crowded trade,” he said.

(Additional reporting by Jan Harvey in London, Christopher Kelly and Carole Vaporean in New York; editing by Jim Marshall)

Gold’s Super Bull Cycle Continues; Technical Evidence Points to a New Record High

Posted in Blogroll on December 7, 2010 by Minimux

 

Gold’s Super Bull Cycle Continues; Technical Evidence Points to a New Record High
        Printer Friendly Version Bookmark and Share
Dec 6 2010 11:07AM

Last Monday’s commentary looked for a continuation of the strong bullish uptrend. This uptrend began with a candlestick pattern we identified on Thursday, November 17th, issuing a buy signal. We are currently still long and are looking for a retest of the record high. We also mentioned that break above 1388 would signal a major breakout; we saw that breakout this last Friday. I currently believe that as this super bull cycle continues, we will see gold trade to new high. The following is how I reached this conclusion.

Chart 1 (above) is a daily gold candle chart. After testing and failing to take out 1388, a flag formation was identified. Last week we advised our subscribers that a breakout was imminent. Although a flag formation can break hard either down or up, we were anticipating the later.  Last Tuesday’s significant move truly illustrated the power of the flag formation. It not only broke above the flag but also to 1388 which is the 23 % Fibonacci retracement level. This was the critical target gold needed to trade above thereby ending the possibility of a head and shoulder pattern. Last Friday we saw continued follow through buying as gold traded just dollars shy of the record top.

Chart 2 (above) is a daily Heikin-Ashi gold chart. Heikin means average and Ashi means chart in Japanese. Although it might look similar to the traditional candlestick chart, the formula used to create the candle is quite different. Unlike the candle chart which uses only data from the current session, the Heikin chart compares the current session to the prior session. This determines how the body of the candle will be drawn. Visually the trend is much more apparent, and by applying some basic rules you can quickly determine whether a market is trending and the strength of that trend.

During an uptrend you will see a series of rising green bodies. However as the trend begins to get stronger the rising green candles will have longer bodies, and most importantly no lower wicks. If the trend is weakening you look for the bodies to get smaller, and for lower wicks to emerge. As the chart above clearly illustrates, we are currently observing rising long green bodies with no lower wicks, a clear indication of a strong trend.

Chart 3 (below) is daily candle chart with Elliot wave count and projections based upon Fibonacci extensions. I believe that we will see gold continue to trade higher. If it is able to successfully trade above 1424, the next upside target could take gold to 1469 dollars per ounce or as high as 1496.

I have firmly believed for some time that gold is in a super bull cycle.  In this cycle the rallies are steeper and more sustained and the corrections are much shallower.  New record prices will continue as this super bull runs its course. In an article written for “Technical Analysis of Stocks and Commodities” one year ago and published this February, I said that gold could be as high as 1500 dollars per ounce over the next two years and 2000 dollars an ounce within ten. That prediction now seems meek; it certainly did not when it was written.


December 6, 2010

How the Oligarchs Took America

Posted in Blogroll on December 5, 2010 by Minimux

by Andy Kroll

There is a war underway. I’m not talking about Washington’s bloody misadventures in Afghanistan and Iraq, but a war within our own borders. It’s a war fought on the airwaves, on television and radio and over the Internet, a war of words and images, of half-truth, innuendo, and raging lies. I’m talking about a political war, pitting liberals against conservatives, Democrats against Republicans. I’m talking about a spending war, fueled by stealthy front groups and deep-pocketed anonymous donors. It’s a war that’s poised to topple what’s left of American democracy.

The right wing won the opening battle. In the 2010 midterm elections, shadowy outside organizations (who didn’t have to disclose their donors until well after Election Day, if at all) backing Republican candidates doled out $190 million, outspending their adversaries by a more than two-to-one margin, according to the Center for Responsive Politics. American Action Network, operated by Republican consultant Fred Malek and former Republican Senator Norm Coleman, spent $26 million; the U.S. Chamber of Commerce plunked down $33 million; and Karl Rove’s American Crossroads and Crossroads GPS shelled out a combined $38.6 million. Their investments in conservative candidates across the country paid off: the 62 House seats and six Senate seats claimed by Republicans were the most in the postwar era — literally, a historic victory.

Knocked out of their complacency, no longer basking in the glow of Barack Obama’s 2008 victory, wealthy Democrats are now plotting their response. Left-wing media mogul David Brock plans to create an outside group dubbed American Bridge in response to Rove’s Crossroads outfits that will fight in the trenches of 2012 campaign spending. Many more outfits like Brock’s will surely follow, as liberal and centrist Democrats brace for a promised $500 million onslaught by the Chamber of Commerce and others of its ilk.

Even the Obama administration, which shunned outside groups in 2008, has opened the door to a covert spending war. The Democrats will now fight fire with fire. “Is small money better? You bet. But we’re in a fucking fight,” Democratic strategist and fundraiser Harold Ickes told me recently. “And if you’re in a fistfight, then you’re in a fistfight, and you use all legal means available.”

The endgame here, of course, is non-stop war. No longer will outside groups come and go every two years. Now, such groups will be running attack ads, sending out mailers, and deploying robo-calls year-round in what is going to become a perpetual campaign to sway voters and elect friendly lawmakers. “We’re definitely building a foundation,” was how American Crossroads president Steven Law put it.

This is what nowadays passes for the heart and soul of American democracy. It used to be that citizens in large numbers, mobilized by labor unions or political parties or a single uniting cause, determined the course of American politics. After World War II, a swelling middle class was the most powerful voting bloc, while, in those same decades, the working and middle classes enjoyed comparatively greater economic prosperity than their wealthy counterparts. Kiss all that goodbye. We’re now a country run by rich people.

Not surprisingly, political power has a way of following wealth. What that means is: you can’t understand how the rich seized control of American politics, and arguably American society, without understanding how a small group of Americans got so much money in the first place.

That story begins in the late 1970s and continues through the Obama years, a period in which American policy has been so skewed toward the rich that we’re now living through the worst period of income inequality in modern history. Consider the statistics: 50 years ago, the wealthiest 1% of Americans accounted for one of every 10 dollars of the nation’s income; today, it’s nearly one in every four. Between 1979 and 2006, the average post-tax household income (including benefits) of the wealthiest 1% increased by 256%; the poorest households saw an increase of 11%; middle class homes, 21%, much of which was due to the arrival of two-job families.

Tax guru David Cay Johnston recently crunched new Social Security Administration data and discovered an even starker divide. On the one hand, the number of Americans earning a steady income declined by 4.5 million between 2008 and 2009, and the average wage in the U.S. dipped by 1.2%, to $39,055. On the other hand, the average wage among Americans earning more than $50 million per year was $91 million in 2008 and $84 million in 2009.

Harvard University economist Lawrence Katz put the situation Americans now find themselves in this way:

“Think of the American economy as a large apartment block. A century ago — even 30 years ago — it was the object of envy. But in the last generation its character has changed. The penthouses at the top keep getting larger and larger. The apartments in the middle are feeling more and more squeezed and the basement has flooded. To round it off, the elevator is no longer working. That broken elevator is what gets people down the most.”

Let’s call those select few in the penthouse the New Oligarchy, an awesomely rich sliver of Americans raking in an outsized share of the nation’s wealth. They’re oil magnates and media tycoons, corporate executives and hedge-fund traders, philanthropists and entertainers. Depending on where you want to draw the line, they’re the top 1%, or the top 0.1%, or even the top 0.01% of the population. And when the Supreme Court handed down its controversial Citizens United decision in January, it broke the floodgates so that a torrent of anonymous donations from this oligarchic class could flood back down from the heights and inundate the political lands below.

“The Thirty-Year War”

How did we get here? How did a middle-class-heavy nation transform itself into an oligarchy? You’ll find answers to these questions in Winner-Take-All Politics, a revelatory new book by political scientists Jacob Hacker and Paul Pierson. The authors treat the present figures we have on American wealth and poverty as a crime scene littered with clues and suspects, dead-ends and alibis.

Unlike so many pundits, politicians, and academics, Hacker and Pierson resist blaming the usual suspects: globalization, the rise of an information-based economy, and the demise of manufacturing. The culprit in their crime drama is American politics itself over the last three decades. The clues to understanding the rise of an American oligarchy, they believe, won’t be found in New York or New Delhi, but on Capitol Hill, along Pennsylvania Avenue, and around K Street, that haven in a heartless world for Washington’s lobbyists.

“Step by step and debate by debate,” they write, “America’s public officials have rewritten the rules of American politics and the American economy in ways that have benefitted the few at the expense of the many.”

Most accounts of American income inequality begin in the 1980s with the reign of President Ronald Reagan, the anti-government icon whose “Reaganomics” are commonly fingered as the catalyst for today’s problems. Wrong, say Hacker and Pierson. The origins of oligarchy lay in the late 1970s and in the unlikely figure of Jimmy Carter, a Democratic president presiding over a Congress controlled by Democrats. It was Carter’s successes and failures, they argue, that kicked off what economist Paul Krugman has labeled “the Great Divergence.”

In 1978, the Carter administration and Congress took a red pen to the tax code, slashing the top rate of the capital gains tax from 48% to 28% — an enormous boon for wealthy Americans. At the same time, the most ambitious effort in decades to reform American labor law in order to make it easer to unionize died in the Senate, despite a 61-vote Democratic supermajority. Likewise, a proposed Office of Consumer Representation, a $15 million advocacy agency that was to work on behalf of average Americans, was defeated by an increasingly powerful business lobby.

Ronald Reagan, you could say, simply took the baton passed to him by Carter. His 1981 Economic Recovery and Tax Act (ERTA) bundled a medley of goodies any oligarch would love, including tax cuts for corporations, ample reductions in the capital gains and estate taxes, and a 10% income tax exclusion for married couples in two-earner families. “ERTA was Ronald Reagan’s greatest legislative triumph, a fundamental rewriting of the nation’s tax laws in favor of winner-take-all outcomes,” Hacker and Pierson conclude.

The groundwork had by then been laid for the rich to pull definitively and staggering ahead of everyone else. The momentum of the tax-cut fervor carried through the presidencies of George H.W. Bush and Bill Clinton, and in 2000 became the campaign trail rallying cry of George W. Bush. It was Bush II, after all, who told a room full of wealthy donors at an $800-a-plate dinner, “Some people call you the elites; I call you my base,” and who pledged that his 2001 tax cuts would be a boon for all Americans. They weren’t: according to Hacker and Pierson, 51% of their benefits go to the top 1% of earners.

Those cuts will be around a lot longer if the GOP has its way. Take Republican Congressman Dave Camp’s word for it. On November 16th, Camp, a Republican from Michigan, said the only acceptable solution when it came to the Bush-era tax cuts was not just upholding them for all earners, rich and poor, but passing more such cuts. Anything in between, any form of compromise, including President Obama’s proposal to extend the Bush cuts for the working and middle classes but not the wealthy, was “a terrible idea and a total non-starter.”

Why should you care what Dave Camp says? Here’s the answer: in January, he’s set to inherit the chairman’s gavel on the powerful House Ways and Means Committee, the body tasked with writing the nation’s tax laws. And though most Americans wouldn’t even recognize his name, Camp’s message surely left America’s wealthy elites breathing a long sigh of relief. You could sum it up like this: Fear not, wealthy Americans, your money is safe. The policies that made you rich aren’t going anywhere.

Tear Down This Law

Where rewriting the tax code proved too politically difficult, demolishing regulations worked almost as well. This has been especially true in the world of finance. There, a legacy of deregulation transformed banking from a relatively staid industry into a casino culture, ushering in an era of eye-popping profits, lavish bonuses, and the “financialization” of the American economy.

April 6, 1998: it’s a useful starting point in the story of financial deregulation. On that day, two well-known Wall Street denizens, Citicorp and Travelers Group, agreed to a historic $140 billion merger. The deal required much lobbying, but eventually the chiefs of these banks won an exemption from the Glass-Steagall Act, the New Deal-era law walling off commercial banks from riskier investment houses. The resulting institution, dubbed Citigroup, would be the largest supermarket bank in history, a marriage of teller windows and trading desks, customer banking and high-stakes investing — all suddenly under one deregulated roof. It would prove an explosive, if not disastrous, mix.

The merger stirred visions of a future in which the U.S. would dominate the planet financially. All that stood in the way was undue regulatory red tape. At least that’s the way free marketeers like then-Republican Senator Phil Gramm of Texas saw it. Gramm, who as an aide to presidential candidate John McCain infamously called America a “nation of whiners,” was, in fact, the driving force behind two of the most influential pieces of deregulation in recent history.

In 1999, President Clinton signed the Gramm-Leach-Bliley Act, a bevy of deregulatory measures that obliterated Glass-Steagall. In December of the following year, Gramm quietly snuck the 262-page Commodity Futures Modernization Act into a massive $384-billion spending bill. Gramm’s bill blocked regulators like the Securities and Exchange Commission (SEC) from cracking down on the shadowy “over-the-counter derivatives” market, home to billions of dollars of opaque financial instruments that would, years later, nearly demolish the American economy.

As presidents, both Bill Clinton and George W. Bush wrapped their arms around financial deregulation. As a result, in a binge of financial gluttony, Wall Street grew fat in ways never previously seen. Between 1929, the year the Great Depression began, and 1988, Wall Street’s profits averaged 1.2% of the nation’s gross domestic product; in 2005, that figure peaked at 3.3% as industry bonuses soared ever-higher. In 2009, bad times for most Americans, bonuses hit $20 billion. So much wealth in so few hands. Nothing explains the rise of the new American oligarchy more starkly.

Of course, it’s not just what politicians did that helped create today’s oligarchy, but what they failed to do. A classic example: in the 1990s, the Financial Accounting Standards Board (FASB), a private American accounting regulator, set its sights on a loophole big enough to drive a financial Mack truck through. Until then, stock options included in executives’ skyrocketing pay packages — potentially worth tens of millions of dollars when exercised — were valued at zero when issued. That’s right: zero, zilch, nada. When FASB and the SEC tried to close the loophole, however, big business leapt to its defense. An avalanche of money went into the pockets of an army of K Street lobbyists and leviathan business trade associations. In the end, nothing happened. Or rather, everything continued happening. The loophole remained.

Citizen United’s Brave New World

Hacker and Pierson ably guide us through 30 years of “winner-take-all” policymaking, politicking, and — from the point of view of the wealthy — judicious inaction. They offer an eye-opening journey across the landscape that helped foster the New Oligarchs, but one crucial vista appeared too late for the authors to include.

No understanding of the rise of our New Oligarchs could be complete without exploring the effects of the Supreme Court’s January Citizens United decision, which set their power in cement more effectively than any tax cut ever could. Before Citizens United, the rich used their wealth to subtly shape policy, woo politicians, and influence elections. Now, with so much money flowing into their hands and the contribution faucets wide open, they can simply buy American politics so long as the price is right.

There’s no mistaking how, in less than a year, Citizens United has radically tilted the political playing field. Along with several other major court rulings, it ushered in American Crossroads, American Action Network, and many similar groups that now can reel in unlimited donations with pathetically few requirements to disclose their funders.

What the present Supreme Court, itself the fruit of successive tax-cutting and deregulating administrations, has ensured is this: that in an American “democracy,” only the public will remain in the dark. Even for dedicated reporters, tracking down these groups is like chasing shadows: official addresses lead to P.O. boxes; phone calls go unreturned; doors are shut in your face.

The limited glimpse we have of the people bankrolling these shadowy outfits is a who’s-who of the New Oligarchy: the billionaire Koch Brothers ($21.5 billion); financier George Soros ($11 billion); hedge-fund CEO Paul Singer (his fund, Elliott Management, is worth $17 billion); investor Harold Simmons (net worth: $4.5 billion); New York venture capitalist Kenneth Langone ($1.1 billion); and real estate tycoon Bob Perry ($600 million).

Then there’s the roster of corporations who have used their largesse to influence American politics. Health insurance companies, including UnitedHealth Group and Cigna, gave a whopping $86.2 million to the U.S. Chamber to kill the public option, funneling the money through the industry trade group America’s Health Insurance Plans. And corporate titans like Goldman Sachs, Prudential Financial, and Dow Chemical have given millions more to the Chamber to lobby against new financial and chemical regulations.

As a result, the central story of the 2010 midterm elections isn’t Republican victory or Democratic defeat or Tea Party anger; it’s this blitzkrieg of outside spending, most of which came from right-leaning groups like Rove’s American Crossroads and the U.S. Chamber of Commerce. It’s a grim illustration of what happens when so much money ends up in the hands of so few. And with campaign finance reforms soundly defeated for years to come, the spending wars will only get worse.

Indeed, pundits predict that spending in the 2012 elections will smash all records. Think of it this way: in 2008, total election spending reached $5.3 billion, while the $1.8 billion spent on the presidential race alone more than doubled 2004′s total. How high could we go in 2012? $7 billion? $10 billion? It looks like the sky’s the limit.

We don’t need to wait for 2012 to arrive, however, to know that the sheer amount of money being pumped into American politics makes a mockery out of our democracy (or what’s left of it). Worse yet, few solutions exist to staunch the cash flow: the DISCLOSE Act, intended to counter the effects of Citizens United, twice failed in the Senate this year; and the best option, public financing of elections, can’t even get a hearing in Washington.

Until lawmakers cap the amount of money in politics, while forcing donors to reveal their identities and not hide in the shadows, the New Oligarchy will only grow in stature and influence. Left unchecked, this ultimate elite will continue to root out the few members of Congress not beholden to them and their “contributions” (see: Wisconsin’s Russ Feingold) and will replace them with lawmakers eager to do their bidding, a Congress full of obedient placeholders ready to give their donors what they want.

Never before has the United States looked so much like a country of the rich, by the rich, and for the rich.

Andy Kroll is a reporter in the D.C. Bureau of Mother Jones and an associate editor at TomDispatch.com.

Follow

Get every new post delivered to your Inbox.