Daily Bell Interview of GATA’s Bill Murphy

The Daily Bell interviews Bill Murphy of GATA (Gold Anti-Trust Action Committee):

“It’s something like out of a James Bond movie. What are the odds that my testimony gets blotted out from live coverage and then our whistleblower and wife get hit by a car the next day? … The gold scandal story is larger than life to begin with. Now throw this spooky stuff on top of it. Veteran Cafe (Le Metropole Cafe, Murphy’s website) members will recall that in the early part of this century what happened to me during a six week period …

My car was stolen and then found on a nearby highway one day after the insurance company paid me off. There was no damage to the car, money left in the console, and a cashmere sweater in the back seat.

My web site was hacked and somebody sent out a very goofy email supposedly from me, but it was not me.

Coming out of a restaurant/night spot less than two blocks from where I live, somebody jumped out from behind a wall and sucker-punched me with brass knuckles. I was out cold and thought my jaw was broken.

Nothing like this has happened before or since.

Daily Bell: Do you think, this time, that the CFTC must take all this seriously.

Bill Murphy: Outside of Bart, it appears none of them want to go there. GATA is like their worst nightmare because they are like everyone else … kowtowing to the rich and powerful. However, a firestorm is growing about what GATA has to say, partially ignited by the Andrew Maguire revelations. I suspect we are finally going to receive some mainstream press in the months ahead, which will be like shining a light on Dracula.

Daily Bell: Why hasn’t it already?

Bill Murphy: The relationship between a government agency like the SEC and the CFTC is insidious. Nobody wants to rock the boat. Heck a number of these people at these agencies end up working on Wall Street, or interact business-wise in some other manner. The Chairman of the CFTC is a Goldman Sachs alumni. That about says it all.”

My Comment:

To follow..

Gold, Silver, and “Suspicious Foreigners”

Mark Mitchell comments on the CFTC hearings and the manipulation of trading of gold and silver derivatives (read IOUs):

“Maguire added: “What’s going to happen, if you’re an Asian trader, or a non-Western trader, who has no loyalty, or doesn’t care about homeland security or anything else, who says, now wait a minute, if I can establish in my mind that there is 100 ounces of paper gold, paper silver for example, for each ounce of real silver, than I have a naked short situation here that I can squeeze and they can go on the spot market which is basically a foreign exchange transaction, short dollar, long silver to any amount they want – billions, trillions — whatever they want, and they can take this market, squeeze this market, and blow it up…”

In other words, the problem isn’t just that criminal naked short sellers manipulate the metals market downwards. It is that they have created a condition where a foreign entity can merely demand delivery of real metal to induce a massive “squeeze” that sends the price of metals skyrocketing, putting huge downward pressure on the dollar. Meanwhile, says Maguire, with prices rising, “for 100 customers who show up there is only one guy who is going to get his gold or silver and there’s 99 who will be disappointed, so without any new money coming into the market, just asking for that gold and silver will create a default.”

This would be a point, except…except..

1. This kind of fraudulent activity in the markets in the West is going to be seen by most foreigners as a direct act of financial aggression against them, not just domestic market participants. You can’t admit that your entire market system is rigged in favor of US and European banks, and then expect that the rest of the world is just going to stand there and not retaliate in some way…with justification.

Turnabout is fair play. Defense is not offense.

2.  I doubt that Chinese, Saudis or any other foreigners are interested in squeezing the dollar, since they are the primary holders of dollars. In international markets, the dollar is still the reserve currency and most people save in it. Nor is the American middle class, loyal or disloyal, going to want a weaker dollar. They earn their money in dollars. The only people likely to attack the dollar are speculators, who will do it because they see a gain to be made from it. And the people most likely to do it successfully are the same people who are involved in manipulating it in the first place...the corrupt bankers and financiers who’ve got the most to gain in this and the least to lose.

Nothing that Paulson, Greenspan, Geithner, Summers, or Bernanke have been doing adds up to anything like a “strong dollar” policy. They’ve done everything but shout “bail” to dollar holders.

The Black Hole In The Military Budget…

A January 29, 2002 piece in the Los Angeles Times suggests that 25% of the defense budget is “missing in action.” Have you ever wondered about the financing of blackops (here and abroad), bribery of public officials (here and abroad), and arms sales without Congressional approval?

“On Sept. 10, Secretary of Defense Donald Rumsfeld declared war. Not on foreign terrorists, “the adversary’s closer to home. It’s the Pentagon bureaucracy,” he said.

He said money wasted by the military poses a serious threat.

“In fact, it could be said it’s a matter of life and death,” he said.

Rumsfeld promised change but the next day – Sept. 11– the world changed and in the rush to fund the war on terrorism, the war on waste seems to have been forgotten.

Just last week President Bush announced, “my 2003 budget calls for more than $48 billion in new defense spending.”

More money for the Pentagon, CBS News Correspondent Vince Gonzales reports, while its own auditors admit the military cannot account for 25 percent of what it spends.

“According to some estimates we cannot track $2.3 trillion in transactions,” Rumsfeld admitted.

$2.3 trillion — that’s $8,000 for every man, woman and child in America. To understand how the Pentagon can lose track of trillions, consider the case of one military accountant who tried to find out what happened to a mere $300 million.

“We know it’s gone. But we don’t know what they spent it on,” said Jim Minnery, Defense Finance and Accounting Service.

Minnery, a former Marine turned whistle-blower, is risking his job by speaking out for the first time about the millions he noticed were missing from one defense agency’s balance sheets. Minnery tried to follow the money trail, even crisscrossing the country looking for records.

“The director looked at me and said ‘Why do you care about this stuff?’ It took me aback, you know? My supervisor asking me why I care about doing a good job,” said Minnery.

He was reassigned and says officials then covered up the problem by just writing it off.

“They have to cover it up,” he said. “That’s where the corruption comes in. They have to cover up the fact that they can’t do the job.”

The Pentagon’s Inspector General “partially substantiated” several of Minnery’s allegations but could not prove officials tried “to manipulate the financial statements.”

Twenty years ago, Department of Defense Analyst Franklin C. Spinney made headlines exposing what he calls the “accounting games.” He’s still there, and although he does not speak for the Pentagon, he believes the problem has gotten worse.

“Those numbers are pie in the sky. The books are cooked routinely year after year,” he said.

Another critic of Pentagon waste, Retired Vice Admiral Jack Shanahan, commanded the Navy’s 2nd Fleet the first time Donald Rumsfeld served as Defense Secretary, in 1976.

In his opinion, “With good financial oversight we could find $48 billion in loose change in that building, without having to hit the taxpayers.”

Is it permitted to wonder if there wasn’t also deliberate siphoning off of funds for illegitimate purposes…

Propaganda Nation: Libertarian Labels

Robert Wenzel at EconomicPolicyJournal.com:

Tyler Cowen has listed from “his gut” the 10 books that have influenced him the most. Human Action by Ludwig von Mises is not on the list. None of Mises’s books are on the list. Keynes makes the list. Of Keynes, he writes:

John Maynard Keynes: The General Theory of Employment, Interest, and Money.  Keynes is one of the greatest thinkers of economics and there are new ideas on virtually every page.

Which raises the question for me, “Why does Cowen even care what Austrian economists call themselves?” If he can’t put a Mises book on a list of ten books that influenced him,when Human Action is the greatest economic text ever written, yet finds room for Keynes and “his new ideas,” I have to classify him a Keynesian, pure and simple.”

Why does Cowen care? It’s all about subversion of language

“Libertarianism” thus defined (or, more accurately, labeled) comes to mean something not very removed from “liberalism”….

…which today has moved so much to the left that in many areas it’s indistinguishable from communism.

Which means you get to call yourself a libertarian but still push for the same programs and policies that the left-liberals push for.

Which keeps you within the range of “respectability.”

And keeps you out of SPLC lists that have you rubbing shoulders with the Pentagon shooter and anyone else who decides to get physical with the state apparatus.

Mind you, at our little blog, we have no quarrel with communism or communists. We don’t think they’re evil. We just don’t want them turning us into guinea pigs for their experiments. When they feel an urge to test the limits of human malleability, we suggest that they try it out first on their spouses and off-spring. See how that turns out after a generation, and then give us a call and we’ll talk….

King World News Reports DNS Attack Following Post On CFTC Whistleblower

GATA reports attacks on friendly sites:

“Eric King told GATA today, “We are on one of the top grid server systems in the world, where traffic is not an issue, and this has never happened before. This was a case of an entity needing to silence the messenger.”

No Internet site has given as much voice to GATA and other pro-gold and free-market advocates as King World News has, so given the scope of the attack on the the King World News Internet site, it is hard not be awfully suspicious about it.

King’s interview with Murphy, Douglas, and your secretary/treasurer can be found here:

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/3/31_G…

Meanwhile, GATA’s friend Trace Mayer, proprietor of RunToGold.com, reports that his March 28 commentary on last week’s hearing of the U.S. Commodity Futures Trading Commission —

http://www.runtogold.com/2010/03/cftc-gold-and-silver-hearing-is-old-new…

— was followed by a similarly massive attack on RunToGold’s Internet server. “To handle spikes in traffic,” Mayer says, “I am on an expensive enterprise-level cloud server with a company that handles hosting for some of the big dogs, like Sony and Toyota, and my server got hammered. The site was down for 2 1/2 hours, from about noon to 2:30p PT on March 30. There were no issues with my hosting provider and it appears we have everything under control now. I have never had an issue like this before. Anyway, it looks like we have someone’s attention. Keep yanking on that tail.”

My Comment:

You see. This isn’t paranoia. In the past, following certain sorts of posts, I’ve experienced peculiar things too. Sometimes, the blog feels like it’s been hacked. Or my email suddenly doesn’t work. Or I get nasty comments from what sounds like the same person, only writing from different IP’s. Or I get flooded with spam from porn sites (more than the usual quota, I mean).

You tend to dismiss these things as coincidental. But after a couple of years of noticing when they happen, you start realizing that someone doesn’t like what you’re saying.

And if that’s true of my little blog, it’s going to be doubly so for bigger venues.

Aldous Huxley On How “Scientific Dictatorships” Induce Compliance

Aldous Huxley, novelist and social critic, gave a talk at the University of Berkeley  on the dictatorship he saw in the future of the United States, a “scientific” dictatorship, he termed it. In it, control would be maintained by narcotizing the population with conveniences, entertainment, consumerism, and drugs. Ultimately, compliance would become pleasurable..

‘Today we are faced, I think, with the approach of what may be called the ultimate revolution, the final revolution, where man can act directly on the mind-body of his fellows.”

(Huxley, The Ultimate Revolution, University of Berkeley, March 20, 1962)

Europol Now Official Police Agent of EU

The New American (hat-tip to Michael Rozeff)

“According to the terms of its new status as the “official” criminal intelligence-gathering branch of the EU government, “Europol now benefits from increased powers to collect criminal information and a wider field of competence in supporting investigations.” Among these increased powers is the power to access the voluminous personal data stored on the computers of Scotland Yard if agents suspect a person may be participating in a “preparatory” act that may lead to criminal behavior.

As has been reported in The New American, the database of information compiled and stored by the government of Prime Minister Gordon Brown is the most extensive in any developed nation. The database was established in 1995 and is the world’s largest. It contains the DNA material of over five million Britons, a figure that represents 8 percent of the population of England and Wales. The recording system was initially developed, ostensibly, to aid the police in the investigation of crime scenes and function as a “vital crime-fighting tool” in tracking down elusive offenders.

Now, every byte of that very personal information is available to Europol, without regard for the national laws of the United Kingdom. The relevant data to which Europol now has unfettered access includes political affiliation, routine, places frequented, DNA, tax obligations, voiceprints, and sexual preference. In fine, everything stored on those massive mainframes is now firmly within the province of distant Europol investigators.

The standard for granting Europol access to the personal data of Britons is much different from that governing their own national law enforcement. According to terms of Title VI of the Maastricht Treaty, the Europol Convention, and the new directives, a mere suspicion of likely criminal behavior in the following vague areas will trigger Europol investigation: racism, environmental crime, xenophobia, computer fraud, and crimes against the environment.

You read that correctly, Europol can now extract “behavioral data” on any citizen of any member state that it suspects — rightly or wrongly — is likely participating in any of the above listed “serious crimes.”

Barack Obama: The Case For Impeachment

David Lindorff lays out the grounds for impeaching President Obama:

Let’s start with the war in Afghanistan, which Obama has taken full ownership of with an escalation that will bring the number of US troops in that country (not counting mercenaries hired by the Pentagon and CIA) to 100,000 by this August.

The president has authorized the use of Predator drone aircraft for a program of bombing conducted against Pakistan which has illegally expanded the Afghan War into another country without any authorization from Congress. These pilotless drones are known to kill far more innocent bystanders than enemy targets, making them fundamentally illegal on principle as weapons. Furthermore, this wave of attacks in Pakistan is a war of aggression against another nation if the word “war” is to have any meaning at all, and as such it is illegal under the UN Charter. Indeed initiating a war of aggression against a country which does not pose an immediate threat to the invader is described in the Charter and in the Nuremberg Tribunal Charter as the gravest of all war crimes.

The president, as commander in chief, has also, in collusion with Attorney Eric Holder, blocked any prosecution of those who authorized and perpetrated torture against captives in the War in Iraq, the War in Afghanistan, and the so-called War on Terror–notably Federal Appeals Court Judge Jay Baybee, and Berkeley Law Professor John Yoo, who as Justice Department attorneys authored the legal briefs justifying torture– and has in fact continued to permit the application of torture against captives. All of this is in clear violation of the Geneva Conventions, which as a signed set of treaties, are part of the law of the United States. Under those treaties, failure on the part of those up the chain of command to halt or to punish those who commit torture are themselves guilty of the crime of torture.

As commander in chief, President Obama has also overseen a strategy in Afghanistan of expanded attacks on civilians in Afghanistan. As in Iraq under the Bush administration, this current phase of the war in Afghanistan is seeing more civilians killed than enemy combatants, because of the widespread use of weapons like helicopter gunships, aerial bombardment, fragmentation bombs, etc., as well as a tactic of night raids on housing compounds where insurgents are suspected of hiding–raids that frequently lead to the deaths of many women and children and innocent men. It is significant that even the recent execution-style slaying of nine students, aged 11-18, by US-led forces, has not led to an investigation or prosecution of a individual. Rather, the incident is being covered up and ignored, with the clear acquiescence of the White House and the leadership at the Pentagon.

It is also widely believed that under the command of Gen. Stanley McChrystal, who is known to have directed a large-scale death-squad operation in Iraq before moving to his current position, a similar death-squad campaign of assassination is being conducted now in Afghanistan--a campaign that like the notorious Phoenix Program in the 1960s in Vietnam, is almost certainly resulting in the deaths of many innocent Afghans.

Domestically, the president has continued to allow the policy of detention without trial of hundreds of captives in Guantanamo Bay and other prisons, including Bagram Airbase in Afghanistan, and his director of national security has even stated that it is the policy of this administration that American citizens deemed by the administration to be enemy combatants or terrorists may be targeted for summary execution. Such officially sanctioned state murder is a blatant violation of the Constitution’s insistence that every American has a right to a presumption of innocence and to a trial by a jury of his or her peers.

The president has also continued and in some ways even expanded the Bush/Cheney administration’s program of warrantless spying by the National Security Agency on the electronic communications of millions of Americans. A part of that program, the monitoring of communications of a now defunct Islamic charity, was just declared illegal by a federal judge in a case that was brought against the Bush/Cheney administration, but which continued to be defended by the current administration. There has not been a decision as yet by the Obama administration about whether to appeal that decision. While the case in question does not represent a crime by the Obama administration, it is clear that it only represents the very tip of the huge iceberg of domestic spying, and the administration’s vigorous efforts to shut down this case or to win it are clear evidence that the NSA is continuing to do the same thing on a vast scale. In fact, the only reason this case even got to trial is because of a government error that resulted in a memo describing the monitoring being mailed inadvertently to the victims of the spying.

While we’re at it, I would also suggest that there is ample evidence to call for the impeachment of Treasury Secretary Timothy Geithner, who appears, as head of the New York Federal Reserve, to have colluded in an effort to cover up a massive fraud at Lehman Brothers, and who has subsequently as Treasurer, participated in unprecedented giveaways of taxpayer funds to several of the country’s largest banking institutions.

The above enumeration of criminal and Constitutional transgressions makes it clear that this president, like his predecessor, has, almost since his first day in office, continued down a road of criminal and unconstitutional behavior that threatens the survival of Constitutional government in the United States.

Let me state it simply: President Barack Obama, as well as Attorney General Eric Holder, Secretary of Defense Robert Gates, and Treasury Secretary Geithner, should be impeached for war crimes and high crimes against the Constitution.

Hedge Fund Lobby Steps Up The Lobbying..

The hedge fund lobby is stepping up the..er… whining and dining in DC, says, Crain’s:

“With all the political and media focus on healthcare reform over the past few months, the financial industry enjoyed a brief respite from attacks and, as would be expected, spent its time and money wisely.

The hedge fund lobby, called the Managed Funds Association, doubled its spending during the last three months of 2009, according to data recently released by the Federal Election Commission. The MFA strategically sprinkled more than $1 million around Washington in the fourth quarter, compared to just $520,000 spent during the same period in 2008.”

Apparently, the hedgies don’t mind registering. What they’re kicking at are some other things:

1. Treating compensation as regular income (with its higher tax rate) rather than capital gains (with its 15% tax rate)

2. The banning of proprietary trading by banks, until now a lucrative source of income, the so-called Volcker rule.

The part I found really interesting in the Crain’s piece is that industry CEO Richard Baker apparently thinks there is a “growing alignment between hedge funds and millions of Americans.”

Oh yeah.

That would be that trader-activist mystique thing where Loeb, Paulson, and Chanos are really doing it for the little guy…….the money is just a side dish.

Um. Yeah. I get that.

And talking about side dishes, I hear that Rachel Uchitel’s interests are just aligned with  Joe Six-pack’s too. She isn’t an extortionist and a gold-digger. Oh no. That’s just what it looks like. She’s a conjugal activist. She trying to get Tiger and all those other rovin’ eyes out there to be better husbands…..