GATA Sues Federal Reserve For Records On Gold Manipulation

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From the website of the Gold Anti-Trust Action Committee, the leading activist against gold price manipulation in the market:

“GATA today brought suit against the U.S. Federal Reserve Board, seeking a court order for disclosure of the central bank’s records of its surreptitious market intervention to suppress the monetary metal’s price.”

For some of my warnings of gold price manipulation, see the following:

“Was the IMF Involved in Gold Price Manipulation?” Dissident Voice, June, 2006

“Hanky-Panky at the Counting House,” Dissident Voice, June 6, 2006

Establishment Media Hops On Survivalist Bandwagon

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Newsweek, getting on the survivalist bandwagon…months late…(see my piece “Getting Off the Grid“).

You read it first here or on some other libertarian site…then it percolates upward to the “elites,”  carefully sanitized of its origins. An anthropology of the taboos and totems of the journalistic tribe is in order..

“In the end, what it all boils down to, at least for the preppers, is self-reliance—a concept as old as the human race itself. As survival blogger Joe Solomon pointed out in a recent column, during the Victory Gardens of WWII, Americans managed to grow 40 percent of all the vegetables they needed to survive. “My mother’s parents had a 10-acre garden, and my grandfather worked at the dairy farm next door,” says Hill, the former jet mechanic. “They worked by raising their own food, they had their own chickens, they canned vegetables, and my grandfather fed a family of 12 like that.” But in the modern world, he says, many of those skills are easily forgotten. Today, our food comes from dozens of different sources. Most of us aren’t quite sure how electricity gets from the wires to our stoves. We use debit cards to buy a can of tuna and we wouldn’t have the slightest idea how to filter contaminated water. We are residents of the new millennium; we simply haven’t needed to prepare.

So for the moment, people like Bedford are reteaching themselves lost skills—and in some cases, learning new ones. Bedford has read up on harvesting an urban garden, and is learning to use a solar oven to bake bread. She is ready with a pointed shot in the event she ever needs to hunt for her own food. And until then, she’s got 61 cans of chili, 20 cans of Spam, 24 jars of peanut butter, and much more stocked in her pantry; she estimates she’s spent about $4,000 on food supplies, an amount that should keep her family going for at least three months. Now, even if something simple goes wrong, like a paycheck doesn’t go through, “we don’t need to worry,” she says.”

Gold Bears On The Prowl

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Former Chairman of President Reagan´s Economic Council:, Martin Feldstein via 321gold.

“In short, there are better ways than gold to hedge inflation risk and exchange-rate risk. TIPS, or their equivalent from other governments, provide safe inflation hedges, and explicit currency futures can offset exchange-rate risks.

Nevertheless, although gold is not an appropriate hedge against inflation risk or exchange-rate risk, it may be a very good investment. After all, the dollar value of gold has nearly tripled since 2005. And gold is a liquid asset that provides diversification in a portfolio of stocks, bonds and real estate.

But gold is also a high-risk and highly volatile investment. Unlike common stock, bonds, and real estate, the value of gold does not reflect underlying earnings. Gold is a purely speculative investment. Over the next few years, it may fall to $500 an ounce or rise to $2,000 an ounce. There is no way to know which it will be. Caveat emptor. “

My Comment:

My interpretation of that is that there´s going to be a concerted effort to push the gold prices lower, which coincides with a technical need to correct…

American Pot Described By Chinese Kettle

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Veteran investigative journalist David Lindorff in 2005 on the Chinese turning the tables on the US on human rights:

” The New York Times was almost apoplectic Sunday over a human rights “report card” issued by China’s Foreign Affairs Department on the United States. That report, a response to the annual report on China’s human rights situation issued by the U.S. State Department, called attention to a number of areas where the U.S. is in violation of universally accepted norms of behavior.

Having lived for two years in China–a fascist-style military dictatorship where the law is simply another tool of repression for those in authority, and where people are routinely locked up, tortured, deprived of their livelihood and even their lives for such transgressions as posting comments on a website, protesting a corrupt boss or conducting prayer services in a private home, and a place where perceptions of America can be pretty bizarre–I was expecting something comic after reading in the Times that the report on the U.S. “approaches caricature.”
In fact, putting aside whom it was doing the talking, the report was pretty damned accurate, and devastating.
American society is characterized by rampant violent crimes, severe infringement of people’s rights by law enforcement departments and lack of guarantee of the right to life, liberty and security, the Chinese report said, noting that in addition to the threats from uniformed law enforcement, some 31,000 Americans were killed by firearms last year. The report also noted America’s record two million prison inmates, and the fact that three times that many are on parole or probation.
Caricature? Hardly. The number of people being jailed in the U.S. is a national scandal, particularly considering the percentage who are black and Latino, and the fact that most are there for non-violent offenses. And no surprise there: Nearly every time I am on the road and see a car pulled over by a trooper, I discover that the driver is black. Unless blacks are uniquely prone to speeding, there is an epidemic of racial profiling, and it’s not limited to highways.
American democracy is manipulated by the rich and malpractice is common, the report continues, noting that elections in the U.S. are “in fact a contest of money.” Really. Can anyone honestly call this a caricature? I remember when I was teaching a group of journalism graduate students in Shanghai, I received my mail ballot from home, which at the time was a small town in upstate New York. I was happy to receive it because I wanted to show it to my class, where the students were anxious to see first-hand how American democracy works. Imagine my chagrin when I opened the envelope and saw that the ballot was composed entirely of single candidates for each post. Republicans so dominated the upstate region that no one bothered to run against them for any town or county post! “These look just like our ballots!” the students said in amazement. Nor in our current red state/blue state polity, are things much different across most of the country, where campaign funding laws, or the lack thereof, make incumbency virtually a guarantee of re-election.
In the area of economic rights, the Chinese report said poverty, hunger and homelessness “haunt the world’s richest country.” Here I’d have to disagree. While the figure they used (from the U.S. Census Bureau—36 million living in poverty—is correct, it is hardly a condition that “haunts” the majority living above the poverty line, since our derelict corporate media don’t cover the poverty beat, and our economically segregated communities make it easy for people to ignore the suffering in the midst of plenty. Still, noting that a sixth of the nation lives in poverty is no caricature. It’s a fact.
Racial discrimination? The report says it permeates every aspect of society, while the new post 9-11 homeland security regulations especially target ethnic minorities, foreigners and immigrants. Does anyone want to challenge the accuracy of that depiction?
As for the rights of women and children, the report called attention to the deplorable rate of rapes and sexual abuse, with some 400,000 children forced into prostitution and sexual abuse. This ugly reality, while also true for China, cannot be brushed aside here.
Finally the Chinese report addressed the abuse of foreigners by U.S. authorities, noting the scandalous violations of the rights of prisoners of war, the history of invasions and unprovoked military assaults on other nations, and the estimated 100,000 civilian deaths in Iraq.
For my part, I was surprised the Chinese report didn’t go further, to mention the failure of the U.S. to abide by international law in allowing foreigners arrested on serious criminal charges in the U.S., including murder, to contact their embassies, the shameful inadequacy of funding for schools in poor communities, the dumping of toxic waste and the siting of pollution-causing power plants in low-income communities, and the theft of private property through improper use of imminent [sic]  domain and draconian drug laws, the unconscionably high percentage of minorities on American death rows, as well as other abuses.
China is one of the world’s prime human rights offenders, but that ugly reality should not prevent us from looking honestly into the mirror that it has held up to our own society and government.
If anything is a caricature, it is the article on the Chinese report, in which The Times appears as a caricature of real independent journalism.”

Doug Valentine On The Empire of The Lie

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Douglas Valentine, author of several masterful books on national security and the CIA, talks to Susan Mazur about Tim Weiner´s new book on the CIA (“Legacy of Ashes”), the nexus of finance and espionage, and the propaganda campaign that lets Americans think the CIA is a force for good.

Here´s a snippet:

“Most of what Weiner writes about the CIA is already known. It’s a history book with a bias, not an expose, at least not for the Vietnam generation. He doesn’t even really get into the current Bush administration. He gives us a predictable treatment of William Casey and the Contras, when there was an incredible revival of the CIA under Casey.”

And that´s precisely what I´d say about exposes that appear in establishment outlets, even if they seem to be literary and anti-establishment (Vanity Fair, New York Times, even,  perhaps Rolling Stone, although much less so). They are less about exposing as about controlling the terms of the discourse, that is, the boundaries within which discussion can take place.

Another insight from Valentine:

“Angleton thought William Colby might be a mole. Angleton exposed the divisions within the CIA after 1966, the Colby vs. Helms factions. He also represented the literary sensibility the CIA once had, where finding secrets was like teasing the meaning out of a poem. Now we have sledgehammer spies.”

(Colby, by the way, died in a ‘boating accident’ in Maryland, on the day that a prosecutor got permission to set up a grand jury to probe the death of Frank Olson, who was involved in chemical warfare research and had been one of the subjects of the CIA´s mind control experiments. The CIA claimed Olson jumped to his death from a hotel window, although his injuries, according to the autopsy, could as well have been inflicted by a blunt instrument. I should note that at the time of his death in 1996 Colby´s name was being used on the letter head of Strategic Investments, a publication of Agora Inc. (co-owned by my co-author), according to several reports, although I can´t confirm to my satisfaction the exact status of that association. Several unconfirmed reports also link Colby to knowledge about the death (or killing, according to some) of White House deputy counsel, Vincent Foster, a preoccupation at the time, of Agora co-founder James Davidson)

More from Douglas Valentine:

“The CIA gets oodles of money from the arms business. Most of their income comes from criminal activity.

The Russian Mafia operates with a sort of impunity. And so does the Israeli Mafia. And one of the reasons they have this sort of impunity is that they’re sharing their profits with the CIA.

And I think a lot of CIA money is capital investments. They’re like movie producers. They want to overthrow the Iraqi government, they go to companies like Halliburton and others who are going to profit from the overthrow of Iraq. And like the executive producers of some movie, they get them to ante-up some cash. Telling them, don’t worry about it, the government contracts you get in return will cover your investment. Plus they have the old boy network – which now is so far flung.

Suzan Mazur: Plus some of the military contractors are organized crime and have had contracts since the 50s.

Doug Valentine: Exactly. Which bring us back to Barry Seal (Iran-Contra). Because in 1972, Barry Seal was to fly some arms and some explosives into Mexico. What the Brooklyn Drug Task Force found out is that this guy named Murray Kessler, who was involved with the Gambino family in Brooklyn, had an arms manufacturing company in New Jersey where the guns and the bombs came from.

Suzan Mazur: And some of these arms merchants also had security clearance during the McNamara and Clifford years of heading the Defense Department. They make weapons for the US government and some for whoever they feel like.

Doug Valentine: From my perspective, the spy industry and especially the arms industry, is the foundation on which the American empire is built. The United States has a military budget of I think $300 billion dollars and the CIA budget is like $50 billion – that’s a year. Together that’s bigger than the gross national product of any country in the world. And in the meantime we’re worried about 20 guys in Al-Qaeda.

[Lila: This statement is inaccurate, as both GDP and GNP in most developed countries were near or over a trillion in 2007. See current figures here. I think the author might have been misquoted on this and might have meant “many countries,”  for example, in the developing world. However, projections for 2010 place US military spending in excess of 1 trillion, if all military-related expenditures are included).

Continuing with the interview:

“Suzan Mazur: Which exploits of the agency do you consider the most diabolical – aside from the fact that one of its founding fathers molested two of his own children – and a reason why the CIA should have been dismantled years ago?

Doug Valentine: Your readers don’t want to know that answer. The most dastardly thing that the CIA has done is to wage this campaign of psychological warfare against the American people. Where the American people don’t see the CIA for a bunch of basically American KGB agents who are conducting criminal activities around the world. There’s a movie called The Usual Suspects with a much feared criminal named Keyser Soze. And Keyser is talking to a cop and he says the greatest trick that the Devil ever pulled was convincing the world that he doesn’t exist.

And this is what people like Weiner are doing with books about the CIA that don’t explain it for what it really is. They’re part of a propaganda machine that’s making the American people see the CIA in mythological terms as good guys, crusaders, as Lawrence of Arabia – when, in fact, they’re criminals. They’re part of THE GRAND LIE.”

My Comment

The piece is long and, for an intelligence aficionado, packed with illuminating detail. Among other things, Valentine touches on James Jesus Angleton, the most compelling of the spy masters (since he was chief of counter intelligence, I should call him chief spy hunter), the extensive role of private intelligence (which I touched on in my Abu Ghraib book), as well as the manipulation of Wikipedia, which Valentine regards as considerably influenced by the CIA.  This confirms my own long-standing observations about Wikipedia.  On crucial topics, it stays within the bounds of  debate allowed by  Western establishment interests and is very far from being an objective or quasi-scholarly affair. (I use the term Western because despite a substantial component of foreigners, the predominant interests served are the interests of the state and the military-industrial and financial industries), the most influential and powerful of which are Western. I do not use the terms capitalist, because I see the establishment as essentially a technocrat or money-managing class, working against capital formation in many respects.

And a final word, from the lips of Bill Colby himself:

“The CIA owns everyone of any significance in the major media.” [Researching the sources of this phrase, I find several sites like this claiming that it is “fake” and to be found unsourced only in a 2000 book by David McGowan, from whence it’s been repeated endlessly on the web. I’ll check up on this but for now am leaving the quote up.]

Was this tongue-in-cheek, or meant to be taken literally? You decide..

Lazard-Freres Insider Trading Bust

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I missed these arrests from back in mid-December:

“U.S. prosecutors filed criminal charges against a former Lazard Freres banker on Wednesday for alleged insider trading that earned him and others $500,000 in illegal profits.

The trading involved some of the highest profile deals during the leveraged buyout boom of 2005 to 2007, including the buyout of TXU Corp, as it was formerly known, for $44 billion, including debt.

The charges were brought against Adnan Zaman, a former vice president at Lazard Freres, in federal court in San Francisco.

Financial regulators also filed civil charges against him and Vinayak Gowrish, a former associate at private equity firm TPG Capital, saying the one-time fraternity brothers stole confidential stock tips and then passed them on to friends. In return, the men received cash kickbacks.

The U.S. Securities and Exchange Commission settled the civil case with Zaman, who agreed to return $78,456 in ill-gotten gains and to be permanently barred from associating with any financial broker or dealer.

The SEC said that Gowrish and Zaman, friends since high school, tipped two friends, Pascal Vaghar and Sameer Khoury. Vaghar and Khoury also settled with the SEC.”

More at Reuters.

My Comments

Is it just me, or does there seem to be an awfully high number of desis (Hindi for home-boy).

What´s with these guys?

As a fellow desi, I have to hang my head. World-class education, world-class jobs, better than world-class salaries…and a world-class racket.

War Without End, Amen..

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Marjorie Cohn:

“Bush’s rationale for attacking Afghanistan was spurious. Iranians could have made the same argument to attack the United States after they overthrew the vicious Shah Reza Pahlavi in 1979 and the U.S. gave him safe haven. If the new Iranian government had demanded that the U.S. turn over the Shah and we refused, would it have been lawful for Iran to invade the United States? Of course not.

When he announced his troop “surge” in Afghanistan, Obama invoked the 9/11 attacks. By continuing and escalating Bush’s war in Afghanistan, Obama, too, is violating the UN Charter. In his speech accepting the Nobel Peace Prize, Obama declared that he has the “right” to wage wars “unilaterally.” The unilateral use of military force, however, is illegal unless undertaken in self-defense…….

…In his declaration that he would send 30,000 additional U.S. troops to Afghanistan, Obama made scant reference to Pakistan. But his CIA has used more unmanned Predator drones against Pakistan than Bush. There are estimates that these robots have killed several hundred civilians. Most Pakistanis oppose them. A Gallup poll conducted in Pakistan last summer found 67% opposed and only 9% in favor. Notably, a majority of Pakistanis ranked the United States as a greater threat to Pakistan than the Taliban or Pakistan’s arch-rival India.

Many countries use drones for surveillance, but only the United States and Israel have used them for strikes. Scott Shane wrote in the New York Times, “For the first time in history, a civilian intelligence agency is using robots to carry out a military mission, selecting people for targeted killings in a country where the United States is not officially at war.“

Delingpole On Wiki Manipulation

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James Delingpole on Wiki manipulation…

“If you want to know the truth about Climategate, definitely don’t use Wikipedia. “Climatic Research Unit e-mail controversy”, is its preferred, mealy-mouthed euphemism to describe the greatest scientific scandal of the modern age. Not that you’d ever guess it was a scandal from  the accompanying article. It reads more like a damage-limitation press release put out by concerned friends and sympathisers of the lying, cheating, data-rigging scientists

Which funnily enough, is pretty much what it is. Even Wikipedia’s own moderators acknowledge that the entry has been hijacked, as this commentary by an “uninvolved editor” makes clear.”

Which is just what we said a while back

here and here.

You get the scoop here…

Warren Buffett To Promote Paulson Book

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Now, we don´t want to read too much into this announcement, but, really, promoting Paulson´s book? What´s Buffett going to say?

I really really like that chapter where Hank had to take over the US government.…you know, after he pushed Bear Stearns and Lehman over with the help of his  hedge-fund buddies…and all but nationalized housing.

Or

Gee, Hank´s into that cap-and-trade collectivist boondoggle that just got outed as a total rip-off  and a fraud made up by climate change fanatics but hey, give the guy a break, will ya? We´re all capitalists here…..you know, like, state capitalists..wazza big deal?

Or

Yeah, I know. Vanity Fair, that bastion of free markets and free minds, already did its bit for Hank´s place in history when it got down on its knees and..um.. blew…up.. the guy into some kind of I´m-taking-on-the-slings-and-arrows-for-the-greater-good-profile-in-courage long before me, and yeah, Bethany  did her bit for Hank too.. but every little effort counts…

I´ve had my doubts about Buffett´s involvement in the bail-out.

This doesn´t make them go away…

Secretive Steve Cohen On Talk Show Discussing Relationship With Ex—

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I’d been avoiding mentioning the by-now famous clip of Steve Cohen on a talk show back in 1992, because it seems like a low blow. I mean, hit the guy over the head on insider trading, but don’t worm around in the trash can for dirt on him. Of course, he did put himself on the show…

But, either way, there’s one angle that is relevant.

If you’re billed as the most secretive guy in the hedge world, presumably because you’re a reclusive, crowd-shy financial genius, what does it say that you once got onto a TV show called Cristina of none-too-distinguished caliber to discuss intimate details of your personal life?

Hmm. That’d hardly what I call shrinking violet material.

Here, sans video (because we don’t drag people’s families in the mud on this blog) is the lowdown at New York Magazine:

“Shortly after they were married in 1992, Steve Cohen, the notoriously secretive hedge-fund manager at SAC Capital, and his second wife, Alex, went on the short-lived English-language version of the popular talk show Christina. The episode? “He Acts Like Her Husband!” The subject discussed? Steve’s too-close relationship with his ex-wife, Patricia Cohen, who recently filed a $300 million lawsuit against him.”

Think about that for a moment.

Psychologically, that doesn’t make any sense for a reclusive genius…

But, just suppose, what you have here is not a shy geeky genius (or maybe, I should qualify that – not solely a shy geeky genius) but a guy who was quite at home at a shady broker called Gruntal & Co. in the 1980s –  a broker that had ties to the Russian mob and to a whole set of players to whom ‘reclusive’ and ‘shy’ are the last words you’d apply. Just suppose what you have here is a guy who was a player in that crowd….making his way any way he could. And just suppose, that past is why he keeps a low profile…

Just suppose.

It’s at least a distinct possibility.

But what’s more like a high probability is that anyone who puts out an article on Steve Cohen like this one or this one by John Carney has lost quite a bit of his credibility on Steven Cohen and on a few things closely related like, say, insider trading…or naked shorting….

Carney’s explanation why Steven Cohen can have done no wrong? A SAC trader told him so. That’s why.

“The trader described the enormous, football field sized trading floor at SAC as “the cleanest in the biz.”

A SAC trader says SAC is 100 percent clean. Because?

Well, that part of it isn’t mentioned in the article, although a lot of other stuff which sure as heck sounds super close to insider trading is.

“When I was there, we put tons of pressure on our brokers to make sure they gave us any information they had fast and first,“

And what was that John Carney was calling Matt Taibbi only a couple of months ago?

Naive?