Blogging Skirmishes, Donkeys, and Chomsky’s Taxes..

Some weird things have been happening to my blog….minor, but worth recounting.

First. A week or two ago, my blog was suspended because of a huge amount of spam that got sent my way.  That happened just after my first posts questioning the Gupta trial verdict. Not to worry, I told myself, can happen to any blog. Of course, in five years, it’s never before happened to my blog….

Second.  A video that I had posted on my blog was deleted….I didn’t delete it. Then that video shows up posted on a friend’s blog. The exact same thing happened last year, with another video that I didn’t delete either, which someone deleted from my blog.

OK. Petty harassment.

Third.  I opened my admin panel and found someone else added as a user. I didn’t add the person’s email.  So I deleted it. Next day, another user was added. I deleted it again.

Fourth,  I make a habit of searching my name to check blog comments or follow ups.  When I click the tab BLOGS on the side of the search, the top link these days  is to Veterans Today, where an error notice pops up saying an article apparently written by me has been taken down.  I’ve not written anything for VT since February 2011 and only wrote a few pieces for them, anyway. I asked them whether there was anything with my name on it on their site these days, they said no. So this is a google cache that someone is sending to the top of blog comments, for some reason.

Fifth. My blog posts show up in searches of Rajat Gupta, usually in the first two pages, sometimes quite high up.  In the last few days when I clicked on them, I found they were all set to private. I haven’t set any of those posts to private.

It’s possible that when updating the entire blog might have gone to private a few times, but why would individual posts change to private without my doing anything?

The posts that changed to private were all controversial ones:

One about Chomsky being for taxes for other people, but not for himself.

One about gold holdings by different countries, showing that India and China have much less than the developed countries and suggesting neo-colonial motives in manipulation of gold and currencies.

One about Goldman knowing all about Galleon and Gupta being a patsy ( a recent one)

Since I blogged, they’ve all been changed back. But I took screen shots,  so it’s not imagination or paranoia.

And a few other things.

I noticed at least one mainstream paper in India responding almost point for point to concerns about the trial I’d raised in my blog.

And then there was the Tahrir Square video on Gurcharan Das’s blog, which, as I said, was on the home page when I blogged it, and then the next day was hidden.

The internet, friends, is not an unalloyed force for good.

No more than TV was.  It is not instant liberation, as naive people like to say it is.

Heartwarming to say things like that. Not terribly true.

Something is good only in proportion to the motives with which it used.

The many well-intended people who use the internet do  make it a force for good.

Unfortunately, the net is also teeming with intelligence operatives, criminals, sting-operations, fakes, frauds,  and  police-state busybodies, who do not ever let really spontaneous interchange take place. They must have a thumb on the scales and rig the deal. They must manage the outcome so it goes in their favor….

Or supports their agenda.

Part of which is to lull people into a false sense of power and security on the net, so they put all their information out there. This is do-it-yourself surveillance. 24/7 and updated by the second.

Radical transparency is the carrot.  The internet kill-switch is the stick.

Either way, the donkey moves forward.

And when one donkey moves forward, so do all the others.

The net appeals to the herd in us.

Internet herds are no less herds because they are electronic. Think about the electronic trading that stampedes the market this way and that.

The internet may liberate us.

Equally, it may enslave us.

Right now it’s 50-50.

These days  I’d say  all bets are off.

Rajat Gupta: Goldman Footing Legal Bills, Says Anonymous Source

The WTF quotient of this bizarre case shoots up even higher.

Someone from Goldman is leaking anonymously that Gupta’s bills –  to the tune of $30 million and counting – are being footed by Goldman itself. With Procter & Gamble picking up the rest.

Startribune:

Goldman foots bulk of Gupta’s $30M legal bill

For Goldman Sachs, the insider trading case against former board member Rajat Gupta which ended in a conviction Friday, was distracting and embarrassing. It has also been very expensive. Goldman Sachs has paid for the bulk of Gupta’s legal defense, which has cost nearly $30 million, according to two people with direct knowledge of the case who requested anonymity because they were unauthorized to discuss it publicly. Procter & Gamble, on whose board Gupta also served, has picked up the balance of the bill. A jury found Gupta guilty of leaking Goldman’s private boardroom discussions to the former hedge fund titan Raj Rajaratnam. He was acquitted on a count related to divulging secrets about P&G. Gupta plans to appeal.”

Comment

[Lila, June 19, 2012. This has since been confirmed as factual and not a rumor or PR]

Hmm. We don’t think too much of anonymous leaking.  Sounds like Goldman PR. The guy is coming off sympathetically, so maybe some one wants to stir up a little bad feeling. Kind of obvious.

They figured they’d axe the guy and everyone would be dancing in the streets and asking for blood. But most people seem to realize that even if Gupta did what he did, insider trading is a small time side-show on Wall Street.  Not the really bad stuff. Most people get that.

And the Indian business world didn’t break down and sob with contrition either, which also flummoxed the ruling class. I mean what good is a psyop, if your target holds up his middle finger back at you?

Reuters ran a piece telling the Indian business community to get a better cause.

The Financial Times (pretty much a mouthpiece for the financial establishment) scolded them for showing support for Gupta.

Then it trotted out various Indian chamchas to pontificate about how corrupt Indian business is, which is true but irrelevant, since Indian business culture has nothing to do with what went on here.

Rajat Gupta lived all his life in the West. He graduated  from Harvard Business School, for pete’s sake. The guy is a product of Western business culture. Go wag a finger at Harvard.

They even had one Gurcharan Das – must be a pretty naive guy – to come out with the proper attitude the wogs are supposed to take about all this. Notice that Gurcharan Das has a website that shows him speechifying at Tahrir Square (US Intel-led revolution)and advising Indians not to let a good crisis go to waste

(this is pure globalist-speak).

[June 19: Further conspiracy note: when I got up today and checked, I noticed that the reference to Tahrir Square etc. had been cut out from my blog post, even though I clearly remember saving it.  I must be confused right? But then, when I checked Gurcharan Das’s website this morning, the video on the home page was no longer about Tahrir Square. It had been switched to something else. The Tahrir Square video had got tucked away inside. Hmm-mmm.]

“It’s the classic problem of status anxiety. It’s what we all suffer from in some form,” said Mr Das, who is the author most recently of The Difficulty of Being Good, a book that draws on the philosophical lessons of the Hindu epic, the Mahabharata.

“As head of McKinsey he was associating with CEOs and billionaires earning very large sums. His job was to advise people with a lot of capital, not to be an owner of capital. He got new ambitions.”

You’ll recognize the  “greed” meme which the establishment pushed heavily to explain what happened.

Fool's Gold: How Unrestrained Greed Corrupted a Dream, Shattered Global Markets and Unleashed a Catastrophe

That’s to distract from the rather obvious origins of the financial crisis in government policy abetted by the criminal actions of connected firms, and not in some generic evil capitalist greed curling around Wall Street like a miasma.

Mr Das also highlighted the “glaring” contrast between an erratic and slow-moving Indian legal system that often protects the well-connected, and the swift and harsh punishment handed out by the powerful US courts. “We sometimes catch [people] but we don’t convict,” he said.

“What the US system is saying is that no one is above the law.”

Poor dear Mr. Das. He must have been struck blind and deaf in the past decade if he believes that “in the US system no one is above the law”.

But I guess, even though Das is doing the talking, he’s really a sock puppet, for his masters.

Like this chap, remember him?

But back to Goldman footing Gupta’s bills. Say it’s not just clever PR from Goldman. Say it’s true.

Why would they do that?

Probably because they really wanted Gupta to get off?  If he’s been a corporate wise man all these years, he’s bound to know where some bodies are buried. Lord knows what he’s going to start saying around sentencing time.

[Or maybe they want to make sure the crowd gets someone to pay for all the excesses of the last few decade.  At Forbes, Richard Levick apparently thinks Gupta deserves the harshest sentence possible just because he didn’t make money on the tip, but wanted to become a bigger player..]

Still, I had no idea that criminal defense teams were part of the severance package at these places. Maybe it has to be.

Given what we know about Wall Street culture,  an individually-wrapped securities lawyer is a non-negotiable perk, like stock options, or something.

Or maybe, I wonder if it doesn’t tell us something else.  May be if they’re footing the bill for Gupta, they’re also picking the lawyer. (Naftalis and Bharara are old friends (I originally wrote Rakoff, but I now read that Bharara is a friend of Naftalis, as well, and I can’t find the place I read the reference to Rakoff, so I’ve deleted it))

And maybe if that’s the case, this is even more of a set-up than I thought.

Rajat Gupta Trial: The Other Goldman Insider Ring…

Just wonder what would happen if Gary Naftalis, lawyer for Rajat Gupta, the former Goldman manager on trial for alleged insider-trading, asked Lloyd Blankfein if he’d ever shared confidential Goldman information himself….you know, with one of his swanky neighbors in New York, say, Daniel Seth Loeb (Mr. Pink of feminine hygiene fame), who manages billions for hedge-fund, Third Point LLC..

Loeb, allegedly part of the network of sometime Sith Lord, Michael Milken (also of insider-trading fame),  is what’s called an activist hedge-fund, which is a nice way of saying he actively influences the price of the stocks he shorts/buys (all for the greater good, of course, but fortunately it coincides precisely with Mr. Loeb’s good too, which is so nice, especially when your hedge-fund is down).

Of course, one guy’s activism is another guy’s market manipulation, but I came not to quibble.

Daniel…Danny to his friends…is also good at digging up… er…doing research on the companies he shorts and employing public message-boards to intimidate company officers with information both relevant to their duties and relevant only to the purpose of intimidation (see also, harassment) .

He employs for that purpose the very interesting corporate intelligence firm of Julius Kroll, which every 9-11 researcher knows…

Kroll has ties (would you call those insider ties?) with Maurice (Hank) Greenberg through its purchase in 2004 by Marsh & McLennan, an insurance brokerage firm owned until 2005 by Jeffrey Greenberg, Hank’s son. Greenberg has been chief of C.V. Starr (CIA-linked), of Starr International, and until 2005 of AIG (also CIA-linked)…..

but I digress…

Where was I? Oh yes. Insider trading.

I just wondered about it in my little ole way, because digging (just like Kroll!)  through my archives, I ran into this note about how…sort of like biorhythms or crime-waves following the phases of the moon… there were a string of exits, literal and figurative, among some of these Goldman- Third-Point-activist-outsider-insider-letter-writing types at certain opportune moments. To wit.

“Goldman’s chief hedge-fund manager, Pierre-Henri Flamand (chief of GS Principal Strategies), retired in February after 15 years at Goldman. Flamand was with Principal Strategies from 2002 -2007, and then turned it into a hedge-fund in 2008, is starting his own fund. He’s being replaced by another manager from GSPS. Goldman has been accused of conniving with select hedge-funds to conduct bear raids on banks and governments.

Meanwhile, Adam Sackett, co-chief of trading at Third Point Capital, died on March 11, March 10, Wednesday night, apparently from a sudden bacterial infection. Third Point is one of the hedge-funds accused of colluding with David Einhorn’s Greenlight and SAC’s Steven Cohen in manipulative activities. Sackett had previously worked at Jim Chanos’ hedge-fund Kynikos (suspected by some to be part of that group), according to this death notice in the New York Times.

Note: Bankruptcy examiner Anton Valukas’ report on the demise of Lehman came out on March 11, 2010, the day after Sackett died.

Our condolences to the family.

In a letter to investors, posted at scribd, Daniel Loeb, Sackett’s co-chief at Third Point, called him “brilliant, kind, and funny, ” says the WSJ.

Last year, Third Point lost three senior officers, its chief operating officer, Brian Wilson, chief risk officer, Devin Dellaire, and head of investor relations, Tom Kratky.”

Tut. The last thing you want at activist hedge-funds is inactive  officers. But there — happens to the best of us.

And Loeb  is among the bestest of the best, we hear. So good that he gets to be neighbors with big shots from Citigroup and Goldman “we don’t do insider trading” Sachs at 15 Central Park West.

That’s this swanky place in New York:

15 central park west residents

And, dang, if  that isn’t a nice picture of Lloyd Bankst – I mean, Blankfein. Guess if you have to do God’s work, you might as well do it in a duplex worth $26 mill, huh?

[I have to say me..being a wog schwartze ‘n all…I couldn’t quite get the hang of what could’ve possibly cost $26 big ones in the place…but as they say, if you got it, flaunt it..]

And here’s Sandy Weill (former chief of Citigroup) flaunting his digs – worth $46 mill – at 15 Central Former Citigroup CEO Sandy Weill bought a full-floor penthouse in the front section of 15 CPW. He paid $43.7 million for the place in 2007, then a record price per-square-foot.

Park West.  (Love the smile, Sandy).  And then there’s Daniel Ochs (hedge-fund manager) and …but I digress, again.

Danny (to his foes, Senor Pinche_Wey – look that up) Loeb paid nearly as much as Sandy for his 8 bedroom apartment (45 million in 2008). He  wants to sell it for 100 million this year.

Nice.

But what I was really getting at, in my clumsy way, is could Mr. Gary Naftalis please inquire if Mr.Lloyd  Blankfein, in his neighborly walks from his apartment ($26 million) to the lobby and back, and up the elevator, and down, and in the door, and out..and waiting to catch a cab, or go to a restaurant, ever run into Mr. Loeb?

And if he did, did he chat? And if he chatted, as I hear he did, did he ever say anything about Goldman? And if he did, did he ever…just accidentally…let on about something that was confidential? I mean, I know how Mr. Blankfein is so big on confidentiality and how careful they are with even the appearance of wrong-doing at Goldman Sachs.

So careful, that their senior executives have begun jumping ship on the front pages of the international press.

Here’s how one of its clients, Marvell Technology Group, saw Goldman’s impeccable culture:

“Dr. Sutardja and Ms. Dai founded Marvell Technology Group, a worldwide semiconductor company in 1995. Goldman Sachs managed the IPO for Marvell and put the two executives into its Private Wealth Management Group. It is alleged that once the two executives’ personal wealth was under the financial management of Goldman Sachs, the firm abused the two executives’ trust, manipulated their relationship, and ultimately defrauded them of several hundreds of millions of dollars.”

And if Mr. Blankfein, like Brer Rabbit, jes’ lay low ‘n didn’t say nuffin’, how should we understand a passage like this one:

“Multiple media stories (such as this one in “Investment News”) have speculated that Goldman Sachs actually designed these CDOs in such a way that they would be certain to implode, delivering large profits to Goldman and preferred hedge fund clients. Those CDO could not have been created without Einhorn and his allies inside New Century delivering the mortgages that went into them. And there is no doubt that Goldman Sachs delivered the knock-out punch that put New Century out of business, ensuring that the CDOs would, in fact, implode. This constellation of facts may be coincidental, of course. Or not. This essay lays them out, and leaves it to the reader to decide.

New Century’s problems began in December 2005, when board member Richard Zona drafted a letter in which he threatened to resign if senior executives did not agree to sell a greater percentage of the mortgage loans on its books to various banks, such as Goldman Sachs. In his letter, Zona explicitly stated that he was making this demand in league with David Einhorn and Dan Loeb.

Unfortunately, according to the bankruptcy report, New Century’s executives never saw that letter. Zona stashed the draft letter on his computer and instead submitted a letter making a similar demand, but omitting all mention of Einhorn and Loeb. In all likelihood, Zona changed his letter because he knew that New Century’s executives had good reason to doubt whether Einhorn and Loeb, who had recently reported large shareholdings in New Century, were acting in the company’s best interests.

As Deep Capture has thoroughly documented, Einhorn and Loeb are part of a network of hedge fund managers and criminals who use a variety of dubious tactics to destroy, seize, and/or loot public companies for profit. It is not unusual for money managers in this network to appear as long investors in the companies they are attacking, and sometimes they seek to obtain a seat on a target company’s board in order to be better placed to run the company into the ground for their own private profit.

Essentially everyone  in this network – including Einhorn and Loeb — are connected in important ways to Michael Milken, the infamous criminal who specialized in loading companies with debt, looting them, and then profiting still more from their inevitable bankruptcies.”

Most of all, could Mr. Gary Naftalis find out why US Attorney Preet Bharara hasn’t charged David (no relation to Danny, we hope) Loeb, who was also leaking confidential Goldman information to Galleon?

“The logs showed calls from Loeb’s phones to numbers associated with Rajaratnam and Galleon trader Adam Smith on dates when Gupta is alleged to have tipped Rajaratnam, bolstering a defense claim that it was Loeb or others who leaked data.

Loeb, whose job kept him in regular contact with hedge funds, hasn’t been accused of wrongdoing, and Frankel didn’t present other evidence that he was the source of Rajaratnam’s information.”

And why  didn’t he charge Henry King, the technology analyst, another Goldman leaker, and how did he overlook the mysterious “Mr. X,” a third Goldman leaker... and why was it he zeroed in only on the luckless Mr. Gupta?

By the time it caught the attention of the Feds, Goldman – if we’re to believe the charges – had sprung more leaks than the Titanic…

Which leads to some interesting speculations.

Marvell Technology, we can safely assume, falls under the tech sector.  That would be the sector in which Henry King, the leaker, worked.  Marvell, with its Singapore offices, would also probably be of interest to David Loeb, head of Asia Equity sales, the other known leaker.

The one with all those ties to hedge-funds.

Would those hedge-funds include Daniel Loeb’s well-known Third Point? Especially, since, on looking up Mr. Loeb’s holdings, we find he has over 40% in technology including holdings in Marvell and in Apple.

Dan Loeb’s Third Point Offshore fund returned 3.7% during the first 5 months of 2012. Here are his top 10 holdings at the end of March:
Company Ticker Value ($000s) Activity
YAHOO INC YHOO 1,073,016 26%
DELPHI AUTOMOTIVE PLC DLPH 417,990 New
SARA LEE CORP SLE 221,221 32%
APPLE INC AAPL 217,037 New
UNITED TECHNOLOGIES CORP UTX 182,468 New
GOOGLE INC GOOG 179,547 New
MARVELL TECHNOLOGY GROUP LTD MRVL 145,503 -8%
MEDCO HEALTH SOLUTIONS INC MHS 140,600 New
FAMILY DOLLAR STORES INC FDO 136,052 New
CAPITAL ONE FINANCIAL CORP COF 119,841 New

It looks like he lost on Marvell, at least the shares he bought this year, but we don’t know what was bought in 2008…or sold…and what with all the long-short, up-down, outsider-insider, black-white, pump-dump, on-shore/off-shore, high-tech low-class complexities of hedge-funds, inquiring minds would like to know….

[June 20. I checked Einhorn and I see that he bought Marvell Technology in 20011 in the 3rd Q
“David Einhorn initially invested in Marvell Tech Group, a semiconductor company, in the third quarter of 2011. He bought 16,640,000 shares at an average price of $14. Then, he added more shares in the next two quarters and owned a total of 18,372,247 at March 31, 2012, making the holding 5.2% of his portfolio and his fifth-largest holding.

Marvell temporarily went above Einhorn’s highest average purchase price of $15.63 in the first quarter, but dropped to open Tuesday at $11.98 per share”

Back to Marvell. The co-founders claim that Goldman forced them to sell their holdings in  companies at a loss, through margin rules, and then turned around and bought those shares for its own holdings and those of its related hedge-funds.

One instance, was in the case of tech stock, NVIDIA:

Citing clear conflict of interest, the FINRA Claim alleges no one from Goldman ever disclosed to Claimants that Goldman was increasing its holdings in NVIDIA shares, while simultaneously forcing Claimants to sell their NVIDIA shares at a loss. Indeed, according to the FINRA Claim, no one from Goldman ever disclosed to Claimants that it was trading in NVIDIA at all or that it provided investment banking services to NVIDIA.

Another was in the case of their own company, Marvell. Their lawsuit against Goldman, though, doesn’t show any evidence of Goldman or hedge-fund purchasing Marvell.

If it did,  to a layman’s eyes, the scheme would seem as bad as a pump-and-dump operation.

Pump-and-dump operations often go hand-in-glove with naked short-selling, even though bashers and pumpers like to face-off on the message-boards with ripe invective.

And now we know that there’s been  naked-short-selling at Goldman Sachs since documentary evidence emerged accidentally in Overstock’s lawsuit with Goldman Sachs.

That  brings us back to the alleged insider trading ring Goldman had going with Third Point and its associates.

Which, again to our layman’s eyes, seems just as bad…if not a good deal worse..than the shenanigans of “Big Raj”‘s Galleon Group.

Besides, Big Raj is not on trial here. He’s already in the slammer. The trial is about Rajat Gupta, whose main mistake in this case seems to have been picking Big Raj for a friend….at least, for the time they were friends.

Which wasn’t long, by the account of Berkshire Hathaway’s No. 2 man, Mr. Ajit Jain.

Raj had gypped Rajat by 2008 says Mr. Jain.

Which means that if you’re looking for insider-rings with high-up connections to Goldman, Gupta might not be the highest up connection. Or, at least, not the only one.

I mean, it seems like if Mr. Bharara, another proud New Yorker, really wanted to know what was going on at Goldman, it would have been a lot less work to just stop by for a neighborly chat at  15 Central Park West….

Or has he?

The Problem With The Rajat Gupta Insider Trading Case

Update:

New charges have been added to the indictment, including alleged tips on March 12, 2007 (Goldman Sachs) and Jan 29 (Proctor & Gamble) that led to Galleon trading.

ORIGINAL POST:

You gotta hand it to the government. They know how to do theater.  Except it’s theater of the absurd.

While mafia outfits with…er…skeletons in their closet sail on unscathed; managers – especially brown ones –  who might have talked out of turn are facing the firing squad.

Walter Pavlo in Forbes:

“The government does have a case, but what they do not have is Gupta on tape, or anyone naming Gupta on tape, as being a source of insider information.  The way to sway a jury, beyond the evidence, is to portray the person sitting on trial as either a devil or saint; a devil guilty, a saint innocent.  According the NY Times, during one discussion outside of the presence of the jury on the first day of trial, Naftalis was warned by Judge Jed Rakoff to not get into too much detail about Gupta’s record of philanthropy (saint).  This, Naftalis argued, would go to discredit “greed” as being a factor in the alleged crime. I think it is a fair point.

Rajat Gupta is a good person who came from humble beginnings and rose to be someone who was well respected in the business community.  He should get a fair trial and I believe that will happen. However, the government’s mosaic of Gupta as a source of inside information is countered by a defense of a man of intelligence, character, and integrity. Those fine characteristics of a person should not go away with an indictment alone, they must be tried in court.  I think Gupta has a good chance, but if Raj shows up, all bets are off.”

I started out being unsympathetic to Rajat Gupta, when the government first brought charges against him last year. At the time, I thought he would be one of many top business leaders who would be charged, and that Lloyd Blankfein, Geithner, and others higher up the food chain and more culpable for the financial crisis, would follow.  Now that I’ve seen that Gupta is going to be served up as the main course for the public to devour, I’ve become a bit suspicious of the bona fides of the prosecution.

Insider-trading, whatever you think of it, is a very tangential part of the financial crisis, except in so far as it was partly the means by which some of the major firms were naked-shorted.

Goldman Sachs, as we’ve seen, is central to that story.

But the Gupta trial casts Goldman as a victim and GS chief Lloyd Blankfein is actually testifying against him. That’s the man whose confab with Timothy Geithner, NY Fed Reserve chairman, in the same month that Gupta is supposed to have tipped of Galleon’s Raj Rajaratnam (September 2008), constituted a scandal several orders of magnitude greater than the alleged shenanigans of Gupta.

Blankfein, surely more culpable, than Gupta or Rajaratnam, is getting good PR, from this trial, as he did from the Rajaratnam trial last year.

So what’s really going on here?

I don’t want to get into the larger picture in this post, except to say it’s all part of a strategy of rescuing Goldman from any serious damage and of redirecting energy away from the most dominant members of the financial world to the relatively new upstarts – the Indians.

In “Breaking India,” Rajiv Malhotra, a former tech entrepreneur turned author, has written eloquently about the dual strategy pursued by the US government in building up India (through the business schools and management networks), while simultaneously breaking it down (India-bashing from leftist journalists, activists, and academics, including the incitement of Dalit activism against India itself as a symbol of Brahmin supremacism).

In a sense, the dual strategy has ended with the Gupta trial and now the object seems to be solely to break the country. The media portrays it with increasing negativity, directing popular anger toward South Asian financial networks, to the exclusion of others,  and, specifically, away from the Anglo-Jewish elites who actually caused the financial crisis.

The new comers might have profited from it illicitly but in no way were they the prime movers of the global heist.

With that quick sketch of the general context, here are the particulars that I find striking for a criminal case pursued with so much fanfare and media attention:

1. There is no “smoking-gun,” whatsoever. That’s right. Zip. Nada. There is not one tape in the over 2000 (TWO THOUSAND) tapes held by the prosecution that either shows Gupta passing on a  tip to Rajaratnam or names Gupta as someone who tipped off RR.

Think about it. It’s pretty incredible. The government was secretly investigating Rajaratnam’s network as far back as 2007, with FBI wire taps over a period of at least 11 months between March and December 2008.

And not one of those conversations, intimate, unsuspecting conversations, actually contains a concrete tip or refers to Gupta as a tipster. There is actually only one Gupta conversation with Rajaratnam in the whole file – on July 29, 2008.

It’s based on this and other circumstantial evidence that the government rests its case that Gupta was passing on confidential board information to Galleon between March 2007 and January 2009, charging him with five counts of securities violations and one count of conspiracy, potentially opening him up to 105 years in prison and $25 million in fines.

I know if someone had taped me for over a year,  there would be a lot of things I’d find it hard to explain. Not because I’m up to anything wrong. Not at all. But simply because I blurt out my feelings in private. It’s the way I am. Sometimes, those are just passing feelings and quite meaningless to anyone who knows me.  I once told my family I wanted to raise a tiger cub in the garden; I’ve called friends names I’d rather forget; I’ve made forceful political statement that I wouldn’t think of venting on my blog. I say things that aren’t even accurate, just because it’s a casual conversation and I’m not thinking, or because I’m thinking of something else or…or…any of a dozen reasons.

And guess what, I’m not sorry I do. I have a right to.  Expressing your views, whether momentary feelings or long standing opinions, is what you do with your friends in your home.

It’s called privacy. If you can’t be free to vent feelings or express opinions, however unpleasant they might sound to a third party (third parties shouldn’t be listening, should they?), what the heck is privacy for?

But drawing conclusions from the haphazard, half-spoken chitchat of people’s private conversations is another things. Private chat is difficult to interpret, unless you get explicit repeated statements that are black and white. Everything else is open to interpretation.

2. There is no evidence that Gupta profited from the information he’s alleged to have passed on. This again is a big gaping hole in the government’s case. The essence of illegal insider-trading is that the wrong-doer materially benefited and that he passed on the tip with that benefit in his mind.

It’s a “mental state” crime, which also makes it hard to prove.

No profit, and bingo, half the case has crumbled.

Now, given that, why would Rajat Gupta turn down a civil trial, where the maximum he faced would have been fines and bans from sitting on corporate boards, and go in for a criminal trial, where he could go to jail? There’s only one reason. An administrative hearing has a lower standard of proof and a judge who can make up his mind as he wishes. A criminal trial gets a jury and demands “beyond a reasonable doubt” as the standard.  But it’s also riskier. Juries can go one way or other.

Here’s my point. The only defendant who would take that kind of risk would be a defendant who thought he was innocent.

So what’s the government doing without these two major elements of a successful insider trading case?

It’s trying to build a circumstantial case, putting together a kind of “mosaic” of the evidence, as someone has noted. It’s calling witnesses to show that while Gupta might not have literally profited from his tips, he indirectly profited, because he was invested with Galleon and he intended to do even more business with it in the future. The tips were credit toward that future return.

The prosecutions’ second line of argument is to suggest that Gupta and Rajaratnam were such close friends, that Gupta had to have passed on tips, because that’s what buddies do.

But, here’s another thing. The government (SEC) didn’t let Gupta see settlement documents with cooperating witnesses against him.

That means the defense doesn’t get to learn the terms on which the government struck deals with cooperating witnesses against Gupta.

That’s pretty significant.

Fortunately, the judge did force the FBI  to review documents (notes) from the SEC’s civil investigation, which overlapped the FBI criminal case (Brady material), and it did force them to show the defendant exculpatory evidence in them.

Thirdly, the government is trying to piece together the timing of the calls to show that it must have been Gupta who put through the call just before closing on Sept 23, 2008, to tell Rajaratnam that Warren Buffet was going to invest in Goldman Sachs. That tip is the piece de resistance of the trial, because Rajaratnam turned around and managed to squeeze a trade through before closing that netted around $800,000.

The Buffet investment information was, of course, confidential, as Lloyd Blankfein testified, as was the information about a Goldman Sachs audit committee meeting, whose results are alleged to have been passed onto Rajaratnam (March 2008).

What Blankfein didn’t testify and someone should have asked was if Blankfein and everyone else in the firm had actually kept the information confidential, as they expected Gupta to. Blankfein does remark that there was a lot of speculation going on about the audit committee findings.

Does that mean there were loose lips all over the place?

Because if there were, then the case against Gupta founders again.

Because then, how do we know who it was that tipped off Raj Rajaratnam?

The answer is, we don’t.

And, in fact, so far the defense has found at least two (and possibly three) other people at Goldman, lower down in the food chain, who were passing on tips to Galleon’s chief. One of those, David Loeb, head of Goldman Sachs’ Asia Equity Sales In New York, made two dozen calls to Galleon, some of them on the same day Gupta is alleged to have tipped the hedge fund off.  Besides Loeb, an analyst Henry King, as well as a Mr. X , have also been mentioned as tipsters. King, a high profile tech analyst known for his spot-on calls, is alleged to have been leaking information from Taiwanese manufacturers to US investors.

Then there’s Anil Kumar, a colleague at McKinsey, who turned informant for the government, in the Rajaratnam case. Kumar testified that Rajaratnam often played off his sources against each other so they would be work harder to get a pat on the head from “Big Raj.” One of the tipsters Rajaratnam played off against Anil Kumar was the “insanely hot” blonde tipster, Danielle Chiesi, whose antics eventually sank the good ship Galleon.

So now we know that Rajaratnam has a profile of manipulating  people and that he could ‘have been trying to get Anil Kumar to do more for him (remember, in the call with Gupta he complains that Anil Kumar isn’t earning the million dollars a year he was giving him). One way to do that would be to hint that he was getting information from someone else, even if that someone else was simply chatting with him and wasn’t actually tipping him.  There’s another angle.  If Anil Kumar could wear a wire and rat out Rajaratnam,  what are the chances he wouldn’t agree to anything else the Feds wanted from him? Maybe he cut a deal to point the finger at someone higher up.  Gary Naftalis, Gupta’s lawyer seems to be thinking along those lines, in demanding to see the SEC’s deals with cooperating witnesses.  Anyway, Kumar is no pillar of integrity and his accusations should be taken for what they’re worth.

What’s also strange….passing strange….is that David Loeb, whom the government caught on tape passing on tips about Intel, Apple, and Hewlett Packard to RR,  has not been charged at all.

Yet, Loeb called Galleon traders twice on September 23, 2008, including once  at  3:07 pm. That’s the same day prosecutors are trying to pin the Buffett tip on Gupta.

I wonder when the other call was; reports don’t specify.

Loeb also made four calls to Galleon’s Adam Smith on October 23, 2008, the same day that prosecutors say Gupta told Rajaratnam that Goldman Sachs would lose almost two dollars a share.

That’s pretty damning. And it’s on tape.  But Loeb hasn’t been fingered.

Instead, the government has gone straight for the jugular of Rajat Gupta.

You have to wonder why.

Honor

Honor
by Ada Cambridge
(hat-tip to Ajit Vadakayil)

Me let the world disparage and despise —
As one unfettered with its gilded chains,
As one untempted by its sordid gains,
Its pleasant vice, its profitable lies;
Let Justice, blind and halt and maimed, chastise
The rebel spirit surging in my veins,
Let the law deal me penalties and pains
And make me hideous in my neighbours’ eyes.

But let me fall not in mine own esteem,
By poor deceit or selfish greed debased.
Let me be clean from secret stain and shame,
Know myself true, though false as hell I seem —
Know myself worthy, howsoe’er disgraced —
Know myself right, though every tongue should blame

Fighting Our Pornified Culture

Mercator Net has an interview with one of the authors of the new book, Big Porn Inc.

Melinda Tankard Reist: The aim of Big Porn Inc. was to blow apart the myth that porn is just about ‘naughty’ pictures of consenting sex between adults, that it is just a bit of ‘harmless fun’. We wanted to expose that pornography is a multi-billion global industry profiting from commodifying sexuality and selling it back to us as industrialised, commercialised, plasticised porn sex. We also wanted to demonstrate the way pornography is colonising the public space, how everything has become pornified. We believe pornography is a public health hazard of major proportions and it’s time to address it.

How has this industry been able to grow so big? Who else is profiting from it?

The industry has a lot of power. This power has bought off law makers, regulators and enforcement bodies around the world. They know how to gain new users, how to get men (the primary users of pornography) using their product and wanting more. The internet has been a massive boon for the porn industry, estimated to reach $US100billion by 2013. There are so many who profit from it, from traffickers who sell women who are used to make pornography, to the porn companies who make the porn, to the hotels who profit more from pay-per-view porn that they do selling rooms and the mainstream companies who profit from carrying porn brands, such as Diva, a jewellery store chain for girls 8-13, which is currently pimping Playboy brand products to them.

A review notes the following:

Here are just a few, with the total Web pages for each: teen sex – 82 million pages; animal sex – over 50 million; bondage – nearly 30 million; crush sex (which involves the killing of small animals) – 8 million; vomit sex – 4 million; wired porn (involving electrical shock) – 1.7 million; snuff sex (involving actual death) – 1.3 million.

So much for porn being all-American and indispensable for freedom from that terrifying bogeyman of modernity – repression….

Who Guards The Guardian?

Gate-keeper of the left, The Guardian, has been attacking Gilad Atzmon for the “anti-Semitism” of his book on Jewish identity “The Wandering Who?” which tackles controversial questions about origin myths, race, and religion. It’s not the first time, and Atzmon is not the only one.

Wikileaks and Assange, as well as Chomsky, Hermann, and others, have come in for bashing.

Of course, I, like others, have had my problems with Assange and with Chomsky too. But for altogether different reasons.  Both seemed to me to be engaged in a kind of misdirection. Others whom I respect have agreed with that take.

But The Guardian‘s criticism, especially of Assange, seems to stem from professional rivalry.  I say that because The Guardian supported the intervention in Libya, while Assange, though he has distanced himself from NATO’s bombing, takes credit for inspiring the rebels.

So it is likely not really a difference in ideology that’s split them.

Wikispooks explains:

“The Guardian’s discrediting of the “left” – the left being a concept never defined by the paper’s writers – is far from taking place in a fair battle of ideas. Not least the Guardian is backed by the huge resources of its corporate owners. When it attacks dissident writers, they can rarely, if ever, find a platform of equal prominence to defend themselves. And the Guardian has proved itself more than reluctant to allow a proper right of reply in its pages to those it maligns.

But also, and most noticeably, it almost never engages with these dissident writers’ ideas. In popular terminology, it prefers to play the man, not the ball. Instead it creates labels, from the merely disparaging to the clearly defamatory, that push these writers and thinkers into the territory of the unconscionable.

A typical example of the Guardian’s new strategy was on show this week in an article in the print edition’s comment pages – also available online and a far more prestigious platform than CiF – in which the paper commissioned a socialist writer, Andy Newman, to argue that the Israeli Jewish musician Gilad Atzmon was part of an anti-semitic trend discernible on the left……..

….As is now typical in this new kind of Guardian character assassination, the article makes no effort to prove that Atzmon is anti-semitic or to show that there is any topical or pressing reason to bring up his presumed character flaw. (In passing, the article made a similar accusation of anti-semitism against Alison Weir of If Americans Knew, and against the Counterpunch website for publishing an article on Israel’s role in organ-trafficking by her.)

Atzmon has just published a book on Jewish identity, The Wandering Who?, that has garnered praise from respected figures such as Richard Falk, an emeritus law professor at Princeton, and John Mearsheimer, a distinguished politics professor at Chicago University.

But Newman did not critique the book, nor did he quote from it. In fact, he showed no indication that he had read the book or knew anything about its contents…..

… the Guardian was happy to offer its imprimatur to Newman’s defamation of Atzmon, who was described as a conspiracy theorist “dripping with contempt for Jews”, despite an absence of substantiating evidence. Truly worthy of Pravda in its heyday.

The Atzmon article appeared on the same day the Guardian carried out a similar hatchet job, this time on Julian Assange, founder of Wikileaks. The paper published a book review of Assange’s “unauthorised autobiography” by the Guardian’s investigations editor, David Leigh…..

…..The low point in Leigh’s role in this saga is divulging in his own book a complex password Assange had created to protect a digital file containing the original and unedited embassy cables. Each was being carefully redacted before publication by several newspapers, including the Guardian……

….Some of this clearly reflects a clash of personalities and egos, but it also looks suspiciously like the feud derives from a more profound ideological struggle between the Guardian and Wikilieaks about how information should be controlled a generation hence. The implicit philosophy of Wikileaks is to promote an ever-greater opening up and equalisation of access to information, while the Guardian, following its commercial imperatives, wants to ensure the gatekeepers maintain their control.”

OWS-Connected Manifesto Calls For Global Government

From the October 14 Manifesto endorsed, apparently, by Eduardo Galeano (socialist), Naomi Klein (socialist), Noam Chomsky (allegedly left-anarchist) and Vandana Shiva (environmentalist):

“Undemocratic international institutions are our global Mubarak, our global Assad, our global Gaddafi. These include: the IMF, the WTO, global markets, multinational banks, the G8, the G20, the European Central Bank and the UN Security Council. Like Mubarak and Assad, these institutions must not be allowed to run people’s lives without their consent. We are all born equal, rich or poor, woman or man. Every African and Asian is equal to every European and American. Our global institutions must reflect this, or be overturned.

Today, more than ever before, global forces shape people’s lives. Our jobs, health, housing, education and pensions are controlled by global banks, markets, tax havens, corporations and financial crises. Our environment is destroyed by pollution in other continents. Our safety is determined by international wars and international trade in arms, drugs and natural resources. We are losing control over our lives. This must stop. This will stop. The citizens of the world must get control over the decisions that influence them at all levels – from global to local. That is global democracy. That is what we demand today.

Comment:

If this weren’t so serious, it would be funny.

“Global Mubarak, Assad, and Gaddafi,” eh? All brown-skinned Muslims? No mention of  Barak Obama or George Bush or Bill Clinton? No mention of Paul Wolfowitz?

The Global Wolfowitz Is At The Door has a nice ring…..

Global Netanyahoo? Too polysyllabic for comfort.

And George Soros, many megawatts more powerful than some Middle Eastern dictators? But Global Soros sounds too much like a disease….

Talking about Soros, check back this to post of mine from June 2010, which analyzes a Soros proposal for global democracy, from 2009. This adds weight to what I said about the push-back against the Tea Party starting in 2009.  When he talks about  “demagogues” in the piece, he means the middle-class that rose up against the bail-outs.

Oh dear. A bunch of professional activsts, westerners all (Vandana Shiva notwithstanding), sharing the same old world view (all leftists), speaking for the six billion plus people of this planet, hundreds of nations, hundreds if not thousands of languages and dialects, scores of religions, ethnicities, millions of companies and associations, most of whom are going about their business and have nothing to do with OWS.

How’s that for Global Chutzpah?

Here is Vandana Shiva calling for global democracy and name-checking George Soros and Mikhail Gorbachev (ANC.net/au):

“And you might remember Gorbachev was a very keen free marketer, and he was speaking with me at the opening plenary of this meeting and said “it’s turned out to be very different from what I had imagined. I thought it would bring democracy; it brought mafia rule.”

And then the person who’s really won out in this game of globalisation — George Soros — he was there too, and this is what he said. (my italics and emphases throughout)

He said: “free markets were supposed to have created open societies, free societies, but we cannot speak of the triumph of democracy. Capitalism and political freedom do not go hand in hand. We cannot leave freedom and democracy to market forces. We need to create our own institutions and different institutions from those that serve capitalism to take care of it.

And anyone,” this is not my words, it’s not your words, it’s George Soros’, “who thinks they can leave freedom to free markets is a market fundamentalist, that’s not how societies work”.

Ms. Shiva, we love your work.  But don’t be taken in by this Hegelian dialectic, this Mighty Wurlitzer of media manufactured global consensus between faux free-marketers (Soros) and faux -anarchists (Chomsky). The missing term from both adjectives is “state”. Soros is a state capitalist and Chomsky is a state socialist. It is the capitalist-communist convergence.

State-capitalists fund the think-tank circuit and foundation activism. The corrosive effects of this on democracy have been established many times by serious analysts.  In what sense then can foundation activists call for democracy? A polarised dialectic is created by the state-capitalists to co-opt reform, and people like Ms. Siva are there to put a diverse face on the resolution of the dialectic and make it acceptable to the non-western world.

Step back and think about the invisible hand here.

Who is this George Soros?

Even Magasaysay Award-winning Medha Patkar, according to renowned anti-globalization activist Arundhati Roy, has allowed herself to be bamboozled by the Wikileaks-blessed Anna Hazare circus.

Now, it is becoming clear to many that behind the attractive “anti-corruption” agenda, which is dear to many, many ordinary Indians, the globalists are showing their hand, by trying to hustle through legislation favorable to them (the Janlok Pal Bill) in the hubbub of the cynically named so-called “Second Indian Independence.”  The government must be “transparent,” but foreign-funded non-governmental organizations promoting chauvinism and wedge-issues, mixing legitimate grievances with bogus accusations, must be exempt from transparency requirements.

False Dissent: Gatekeepers From Ron Paul To Noam Chomsky

Zahir Ebrahim:

“Virtually one hundred percent of what is deemed respectable Western dissent espouses this foundational axiom. It works well because it draws upon selective empiricism couched in omissions to demonstrate its veracity. But a half-truth is still only a full lie. That full lie works like this:

‘The greatest triumphs of propaganda have been accomplished, not by doing something, but by refraining from doing. Great is truth, but still greater, from a practical point of view, is silence about truth. By simply not mentioning certain subjects, by lowering what Mr. Churchill calls an “iron curtain” between the masses and such facts or arguments as the local political bosses regard as undesirable, totalitarian propagandists have influenced opinion much more effectively than they could have done by the most eloquent denunciations, the most compelling of logical rebuttals. But silence is not enough. If persecution, liquidation and the other symptoms of social friction are to be avoided, the positive sides of propaganda must be made as effective as the negative.’

— Aldous Huxley, Preface (circa 1946) to Brave New World, 1931, Harper, pg. 11

Both sides of propaganda are thus put into effect. The mainstream chiefs enact the big lie and repeat it endlessly for the positive side of propaganda. The dissent-chief enact the negative side of propaganda by calculated omission of certain subjects, and by omitting to draw logical conclusions from them because they no longer have to — the facts have been omitted from the “respectable” discourse space altogether. It is wonderful how this is used to provide the illusion of the free press and free society by both the mainstream press and the so called alternate press:

“The smart way to keep people passive and obedient is to strictly limit the spectrum of acceptable opinion, but allow very lively debate within that spectrum – even encourage the more critical and dissident views. That gives people the sense that there’s free thinking going on, while all the time the presuppositions of the system are being reinforced by the limits put on the range of the debate.”

— Noam Chomsky

This is exactly the same controlled-dissent genre of lauded pontiffs of dissentstream spanning the gamut from Messrs. Ron Paul ( http://tinyurl.com/RonPaul-NWO-Asset ) to Noam Chomsky himself ( http://tinyurl.com/Hegelian-Dialectic-Dissent ) et. al. on the Left-Liberal-Libertarian nexus, to Foxnews-Right-wing-Religion-Intelligence-State-worship-Patriotism nexus.

I am not sure which compartment Francis Boyle ( http://tinyurl.com/francisboyle-2011-humanity ) falls into but it is just as systemic there as elsewhere.

I invite Truthdig to publish the examination referenced below written by a Muslim, yours truly, belonging to the ‘untermensch’ civilization bearing the full brunt of Chris Hedges’ admission that “We became terrorists too,” and “We Are What We Loathe”.

Such banal statements can perhaps win Mr. Hedges multiple Pulitzer prizes for their profundity — precisely because these neither inform nor educate to the degree necessary for unraveling the entire Hegelian Dialectic, lest it spawn a real resistance movement with teeth singularly focused on the puppetmasters orchestrating the “clash of civilizations”.

This style of dissent-lite only enables introducing and sustaining beneficial cognitive diversity for the purpose of defocusing the energies of conscionable peoples – its primary objective – until fait accompli.”

The Case Against Wikileaks – I

Posted at Veterans Today:

Let me first say that harassing Julian Assange for having published leaked government documents is completely wrong. There’s no evidence so far that anyone has been injured directly because of the leaks. National
security (even as understood by mainstream statists) hasn’t been damaged.
As for the embarrassment some officials might be feeling, tough. Governments routinely subject their citizens to much worse for no valid reason.  As for diplomacy, there’s none worth the name.  All we have is blackmailers, bullies, and outright bandits in high places. Some outing and shaming of their public actions is in order. Exposing the crimes and blunders of the state is not only a right of citizens, but a
duty.

As enough people have argued, Assange is obviously not guilty of treason, since he’s not a citizen of the US. And, although some people think he’s guilty of espionage, that’s doesn’t seem true either.  He didn’t hack any state computer or blow any agent’s cover to get his information. It was mostly given to him voluntarily by whistle-blowers and leakers.  All he did was publish it. And, since New York Times Co. v. United States (1971), US law has protected the right of publishers to publish politically sensitive information without “prior restraints,” as long as it doesn’t cause “grave and irreparable damage”
to the public.

Having said that, though, I must admit that for almost a year now, as I’ve
blogged,
I’ve found the whole Wikileaks operation strange, if not a bit fishy. Let me recount the ways.

1. Most of the documents seems to cover material already fairly well-known to informed people.  The new material is mostly embarrassing stuff, nothing truly revelatory, say dozens of critics. Now, mainstream critics might just be trying to do damage control, but why would
respected alternative investigators who are outspoken critics of war and the police state, people like Wayne Madsen or co-founder John Young or Chris Floyd, among many others, also come to that conclusion? [Floyd seems to have “gone
wobbly”
since then].

By Assange’s own account in the  Australian, here are the most important revelations from Wikileaks:

“The US asked its diplomats to steal personal human material and information from UN officials and human rights groups, including DNA, fingerprints, iris scans, credit card numbers, internet
passwords and ID photos, in violation of international treaties. Presumably Australian UN diplomats may be targeted, too.

King Abdullah of Saudi Arabia asked the US Officials in Jordan and
Bahrain want Iran ‘s nuclear program stopped by any means available.

Britain’s Iraq inquiry was fixed to protect “US interests”.

Sweden is a covert member of NATO and US intelligence sharing is kept
from parliament.

The US is playing hardball to get other countries to take freed detainees from Guantanamo Bay. Barack Obama agreed to meet the Slovenian President only if Slovenia took a prisoner. Our Pacific
neighbour Kiribati was offered millions of dollars to accept detainees.”

Now, these disclosures would be nothing to scoff about on any activist’s resume.  But is Assange telling us anything  we didn’t already know? What has really been added so far except specifics and
details? Then why are the revelations being called a
new 9-11
?

2. An overblown media story is not the only difficulty with Wikileaks.Consider that in all this welter of damaging information, whatever you think of it, there’s nothing that really damages Israel.

Justin Raimondo, a right-wing libertarian, has tried to suggest there is. He says there’s material in Wikileaks that reveals the sinister activities of the Israeli mafia. Big deal. Everyone knows the
Israeli mafia is everywhere, not just in Israel. The Russian mafia is a euphemism for the Russian and Ukrainian Jewish mafia, which has strong ties to Israel. The Colombian drug trade is run by this mafia. So is the Eastern European sex trade. According to Mark Mitchell, Wall Street is run by it. A leak about the
world’s most dangerous mafia, that everyone already knows about, doesn’t really damage Israeli foreign policy, does it? It even carries a good guy flavor about it.

That means what we really have in Wikileaks is a document dump slanted a particular way. So says at least one establishment figure, Zbigniew Brzezinski,  former Secretary of State under President Carter.

Say what you will about him, Brzezinski, master-mind of the policy of luring the Soviet Union to its destruction in Afghanistan, is nobody’s fool. He spots the hand of an intelligence agency in all this.

Could this be a calculated subliminal “prepping” of the collective pysche by a state intelligence outfit, masquerading as an expose of states?

3. Now comes a
report that Julian Assange cut a deal
with Israeli officials to keep anything damaging to Israel out of  the revelations. I don’t know how well-sourced or credible this report is. But then there’s also Assange’s citation of  Benjamin Netanyahu, the hawkish Israeli prime minister who’s praised Wikileaks. And there’s Assange’s statement in the Australian crediting Rupert Murdoch, a hard-line
Zionist and one of the biggest promoters of war with Iraq, as his inspiration. That alone should make people think twice . It’s not just that Israeli isn’t damaged by Wikileaks. A lot of the material on the site actually helps Israel’s global objectives.  We now know that neighboring Arab states are alarmed by the idea of a nuclear Iran. We learn that the Saudi rulers are in bed with the Israeli government and are thoroughly corrupt. Pakistan is treacherous and a threat. There’s a hornet’s nest of terror in South India. This is news? And even if you think it is, who benefits?

Doesn’t all this simply amplify Israel’s hardline attitude to the Islamic world and justify the recent introduction of the biometric ID into India, Afghanistan, and the Af-Pak border? Don’t the revelations reflect most poorly on the Arab states and on America, but not on Israel? Don’t they channel global attention and anger away from the global economic collapse master-minded by Zionist financiers and their supremo, the Federal Reserve? Don’t they redirect anger at Israel for the slaughter in Gaza, for the massacre
on the Mavi Marmara
, and for the AIPAC espionage case, as Gordon Duff, at Veterans Today points out? Even
liberal commentator Juan Cole writes
that Assange is being tarred and feathered for giving to the public what AIPAC routinely gives to Israel.

And what is the ultimate result? Israel now claims that the US is too distracted to broker a deal on settlements.

Again, who benefits from that? Israeli hard-liners, of course.

4.  But maybe all this is just the price Assange has to pay to get wide coverage in the Western mainstream, largely dominated by Zionist editors, writers, and publishers?

Maybe.

Is it also part of the price that he has to bash the 9-11 movement? If you’re against empire and exploitation, as Assange says he is, then shouldn’t you be interested in uncovering the truth about the attack that was the explicit trigger for the unjust
war on Iraq, the global war on terror, Homeland Security, and every police state measure since?

And if you’re not, what’s your excuse?

It’s not just that Assange is not interested in 9-11. He’s gone out of his way to mock people who’ve devoted countless unpaid hours of work to investigate it, with none of the media attention that follows every step Assange takes.

5. And that brings me to my fifth point. The fate of whistle-blowers and tellers of dangerous truth is rarely rock-star celebrity. Count them. Mordechai Vanunu, who exposed Israel’s nuclear program – imprisoned for nearly 20 years. Gary Webb, who exposed the CIA connection to the distribution of crack cocaine in the US –  probably murdered. Russian journalist, Anna Politkovskaya, who criticized Putin’s policies in Chechnya -assassinated. Lebanese journalists Samir Qassir and Gebran Tueni, who criticized the Syrian government –
killed in car bombings. In 90% of such cases, says the Committee to Protect Journalists, the killers are never brought to justice. Yet, Assange, “the
most dangerous man in Cyberspace,”
according to the faux-alternative
magazine Rolling Stone, lives to tell the tale of his persecution from the cover of Time magazine and the podium of TED conferences, weighted down with awards and honors from such establishment worthies as  Economist, New Statesman, and Amnesty International.

And now he is the center of an international man-hunt. Here too, the claims are bizarre. If Wikileaks hasn’t put lives at risk or seriously damaged “national security,” by even the government’s own account, what to make of all these feverish cries for prosecution under the espionage act, for imprisonment
and torture
, even for execution?

Are they for real, or does any one else detect an element of theater?
The Wikileaks disclosures have been called cyber-terrorism by many. When before have we seen an international man-hunt for a rag-tag band of terrorists headed up by a charismatic mystery man with a striking appearance and a personal life shrouded in mystery? Now we have Osama-bin-Assange and Al-Wikileaks at war with Joe Lieberman and Sarah Palin, on one hand, and cheered on by David Frum, on the other. Notice that Frum points out that the disclosures actually support George Bush’s rationale for invading Iraq.

This is box-office gold. As some wide-awake journalist has noted, the big winner in all this is the establishment media. Before, it had one foot in the grave. Deservedly. Now it is a  “truth-teller.” Readership is up, resurrected by proxy. And the major alternative press, the foundation activists, are bolstering the conclusions of the New York Times. How convenient.

I dearly wish Julian Assange were exactly as he seems – a brilliant iconoclast delivering the death blow to imperialism. But my memory is not so dim.  I remember another media circus besides the one around
Osama. I recall the mass adulation of  a man who exuded brilliance, youth, hope, and salvation. That was in 2008, and he was a young law professor from Chicago. How did that turn out?

6.  Then again, if Assange’s message is so subversive to the state, why are the state’s most reliable mouthpieces plastering his message everywhere? Why did Assange himself choose the New York Times, the Guardian, and Der Spiegel for his initial exposes?

These are left-center outlets, statist to the core.  And Assange, the self-proclaimed libertarian chooses them? Perhaps, one could argue, the left-center is where the most powerful and influential media organs are located. Assange is just being a savvy marketer in picking those outlets.

Perhaps.

But perhaps not.

Perhaps, instead, he could have thrown in one libertarian or conservative newspaper, at least, to show even- handedness? How hard would it have been to send material to, say, the Independent?

7. But he didn’t, so again I ask you,  how libertarian can he really be? And if he isn’t a libertarian, why does he go out of his way to proclaim he is? There’s nothing wrong, after all, with  being a
socialist or even a communist, at least in most places outside the US.

Why doesn’t Assange just declare himself a left-wing peacenik and leave
it at that?

Ah, now things get even more interesting. Dig into Assange’s writings –  most of it very engaging and thoughtful –  and contradictions emerge.

On June 18, 2006, he writes:

“Rights are freedoms of action that are known to be enforceable. Consequently there are no rights without beliefs about the future effects of behavior. Unenforcable general rights exist only insofar as they are argumentation that may one day yield enforcement. Hence the Divine Right of Kings, the right of way, mining rights, conjugal rights, property rights, and copyright. The decision as to what should be enforced and what may be ignored is political. This does not mean that rights are unimportant, but rather, that politics (the societal control of freedom) is so important as to subsume rights.”

I will repeat that. Assange places societal control above the exercise of rights.

This is not libertarian. And it’s not an isolated statement. It’s repeated elsewhere.

“Technical people, good at stacking houses of abstract cards often look at the law and see rules, but this is a shadow, for law hangs from the boughs of politics, that branch of behavior involved with the societal control of freedom of action. Always consider the real politik
of law; who will push for change and who will resist.”

And then about global warming (Assange seems to believe in anthropogenic global warming), he says this:

“The bottom line is, as Benford notes, “we’re going to have to run this planet.”

Some libertarianism. One critic has pointed out that at the core of Assange’s philosophy is not openness and freedom so much as a left-leaning concern with “justice.” Nothing wrong with that. So why the dress-up in American-style libertarianism? At whom is the repackaging, if it is that, directed?

Authoritarianism emerges also in Assange’s work at Wikileaks, where he is technically the chief editor and spokesman. His associates complain of egotistic, autocratic behavior, much different from his anarchist professions.

Some have left to start their own sites. Others complain about the secrecy he maintains about his own work, also at odds with the transparency he advocates for others.

This secrecy might, at first, seem justified. Wikileaks, after all, is a private, not a public outfit. Maybe so. But that distinction hasn’t stopped the site from publishing the secrets of other private organizations, like the Christian Scientists and the Mormons. It’s also published the hacked private emails of Sarah Palin and the financial information of private clients of the Swiss bank, Julius Baer.

Wayne Madsen has argued that this ultimately benefits Democrat financier George Soros.

This is a performance that seems not only hypocritical but curiously partisan and parochial, especially when set against the generous intellectual sweep of Assange’s theoretical writing.

And that’s exactly the taste left in your mouth after a sampling of Wikileaks‘revelations.

After all the hype about “scientific journalism,” the conclusions Wikileaks
supports are downright provincial: our government lied us into war in Iraq; Hillary Clinton’s a bitch; Arab regimes are corrupt and deserve regime change; private contractors are bilking tax-payers; corporate corruption is the real conspiracy, not 9-11.

This is stuff that could have come out of the computer of any
government propagandist.

More to the point, some of us are wondering if it really did.

(To be continued)