Washington consensus

The Enemy Within

The phrase “enemy within” brings to mind the image of a shadowy spy stealing military secrets. That was the case for Israeli master spy Jonathan Pollard jailed for 1980s espionage that compromised U.S. Cold War strategy.

That phrase also describes those involved in a form of psy-ops that is not easily detected because it operates so brazenly. For instance, the well-timed release of diplomatic cables by WikiLeaks displaced reports of Israeli obstinacy in peace talks with reports of a need for war with Iran.

That operation relied on editors at four major newspapers chosen by WikiLeaks to manage the releases. Despite the delight at their impact voiced by Israeli Prime Minister Benjamin Netanyahu, mainstream media failed to mention the possibility of undisclosed bias by those who chose what to release and when.

The bias of The New York Times is well known. Less clear is the role of Ian Katz, Deputy Editor at The Guardian (London) and Executive Editor Sylvie Kauffman at Le Monde in Paris. The geopolitical success of the WikiLeaks operation suggests an enemy within.

Israeli duplicity often operates through what U.S. Defense Secretary Robert Gates describes as “the people in between.” When waging unconventional warfare, those people are the most dangerous combatants, particularly those operatives in mainstream media.

The People in Between

For systems of governance reliant on informed consent, nothing could be more perilous. The “people in between” routinely target media—freedom’s greatest vulnerability—as a means for displacing facts with what a targeted populace can be deceived to believe.

How old is this duplicity? How long have false beliefs been used to manipulate behavior? Modern technology—particularly media—enables deception on a global scale. Between the American populace and the facts they require to protect their freedom—that’s where this enemy within imbeds its operatives.

The false intelligence claiming Iraqi WMD was a people-in-between operation. Judith Miller at The New York Times fed us a steady diet of front-page news that we now know was fixed around Israeli goals promoted by Ahmad Chalabi, a London-based Iraqi expatriate who, like Israel, sought regime change in Iraq.

Pentagon insider Richard Perle developed Chalabi over two decades. A Jewish Zionist, Perle has long been a strategically well-placed “person in between.” Miller left The Times and joined Fox News and then Newsmax.

Yet the impact of complicit media pales in comparison to the enemy within that brought the U.S. economy to its knees and undermined national security at its financial core.

Imbedded Inside

The most devastating in this chronicle of enemies is the most difficult to see. As with other “in between” operations, this too succeeds by displacing facts with false beliefs. Only in this case, those beliefs were imbedded in education and over decades worked their way into law.

Known as the “Washington Consensus,” this widely shared perspective shapes economic policy worldwide. At the heart of this generally accepted truth is found the belief that money should be accountable only to itself.

In this mindset, financial freedom is an article of faith. Instead of the civil rights refrain, “Let my people go,” its proponents insist: “Let my money go.” Allow money the freedom to work its will worldwide and everything will work out fine.

That shared belief works “in between” in the same way that Jonathan Pollard undermined national security, WikiLeaks shifted attention to Iran and Judith Miller induced us to war in Iraq. Only in this case a false belief has been so thoroughly internalized that it’s difficult to see because this shared mindset has become that with which we have been educated to do our seeing.

A Global Sanhedrin

The World Bank and the International Monetary Fund are the primary apostles of this consensus faith. The World Trade Organization (WTO) now seeks to take this belief to global scale by enforcing unrestricted free trade not only in goods and services but also financial capital.

The WTO operates like a global Sanhedrin akin to a Jewish high council accountable only to itself. What’s now emerging as a global enemy within is a finance-guided form of transnational governance marketed as free trade but accountable only to itself.

That ‘self’ traces its origins to an internalized mindset in which financial freedom serves, by consensus, as a proxy for personal freedom. That mindset was decades in the making.

This modern-day Mindset Warfare is being waged by an enemy that is truly within. Fast globalizing financial forces now induce us to freely embrace the very forces that undermine our freedom.

By waging war on us from the inside out, the originators of this money-myopic mindset dismantled the U.S. economy, enabled vast financial pillaging and induced us to fiscal ruin.

Those wielding this weaponry operate from our internal shadows as the Zionist entity within.

Washington consensus

A.I.G. Made Easy

 
Copyright Korea Times

Had insurance giant A.I.G. collapsed, losses from its failed insurance coverage would have rippled through banks and investment banks worldwide, destabilizing the world economy.

Yet A.I.G. set aside no reserves to cover the risk of default on those securities it collected premiums to insure. Why should it? Securities rating agencies ranked even the riskiest of those securities akin to U.S.-government bonds with virtually no chance of default.

A.I.G. professed to insure high-risk loans packaged and resold as low-risk securities to unwary pension funds. In a financial markets version of musical chairs, A.I.G. could afford to be the last one standing, confident they were too big to fail. Let’s keep it simple: imagine the casino skim taken to global scale as players extracted fees at each step along the way.

A.I.G.’s lack of financial reserves did not inhibit its financial products unit from charging handsome fees while its insurance unit pocketed vast premiums. A.I.G.’s rare triple-A rating lent the firm an image of strength and stability even as it “insured” the riskiest securities backed by the least secure of subprime mortgages.

A.I.G.’s financial “creativity” induced A.I.G. clients to believe their premiums would cover the risk of default. Heads A.I.G. wins. Tails and we’re told that taxpayers must pay. A precedent was set with the massive savings and loan fraud of the late-1980s when policy changes enabled a similar financial “pump-and-dump.” As real estate prices soared, cash was skimmed at the top of the market to acquire assets cheaply at the fire-sale bottom.

The origins of this fraud can be traced to a “Chicago” mindset that likens unfettered financial freedom to personal freedom. The public interest, we’re assured, is best served by allowing money to freely work its will worldwide. Fed Chairman Alan Greenspan reassured us that “financial creativity” would protect us from the very “irrational exuberance” that he enabled with a combination of easy money and free market ideology.

In a classic exercise in political distraction, the public is now incensed at a reported $165 million in incentive payments to the A.I.G. geniuses behind this financial creativity. In truth, their real bonus figure is closer to $450 million. Albeit outrageous, it totals less than one quarter of one percent of a taxpayer bailout for A.I.G. poised to top $200 billion.

Forced to disclose to which firms the first $85 billion in bailout funds were paid, A.I.G. conceded that 16 of the top 22 institutions were foreign-owned firms. Goldman Sachs, a key node in this transnational network of financial creativity, was paid $13 billon by A.I.G. That’s in addition to the $10 billion that Washington paid directly to Goldman last fall.

Obama adviser Larry Summers succeeded Goldman Sachs chair Robert Rubin as Treasury Secretary when key policies were changed that enabled this fraud. He also handpicked a Harvard advisory team who oversaw a similar fraud that financially pillaged the Russian economy. When Moscow hit the “reset” button in its shift from state to private ownership, a national scale fraud created an oligarchy that dominates the Russian economy.

As soon as Russia’s restructuring was complete, its beneficiaries cited sanctity of contract to protect the spoils of their massive fraud while a deceived Russian public was driven into poverty. There, a massive “loan for shares” fraud enabled financial sophisticates to emerge dominant. Here, a massive “funds for shares” program turned to hedge funds and private equity firms to rescue us from our Greenspan-enabled profligacy.

To facilitate an American-style “reset,” government debts will be secured by our full faith and credit to help financial sophisticates buy trashy debt securities from A.I.G.’s defrauded clients. That cost will reduce fiscal resources required to address the retirement needs of 78 million Baby Boomers whose pension funds were ravaged by this “Chicago” fraud.

As this cash-for-trash program proceeds, who will emerge as dominant owners of the nation’s distressed financial sector? Answer: the senior partners of hedge funds and private equity funds—who already dominate the Forbes 400 list of richest Americans.

As in Russia, debate is being framed around sanctity of contract to insulate from a deceived public a vast transfer of wealth into a few hands. Summers cited that sanctity to insist that A.I.G.’s financial products unit be allowed to keep their half-billion dollars in taxpayer-paid bonuses. Obama initially opposed the bonuses while an incensed House approved legislation imposing a 90% tax. Chicagoan Obama has since backed down. That tax could have set a precedent for a bilked public to recover other stolen wealth.

The real issues remain obscured in the outrage over executive pay while the entire economy is being “reset” in plain sight. The policy changes proposed by Summers & Co. will create a uniquely American-style oligarchy. As taxpayers are stuck with the mortgage, our creative financial sophisticates will get the house. Is this the future that Americans want?

Another intelligence “dot disconnect” may be in the works. While Secretary of Homeland Security Janet Napolitano cites our porous borders as the primary danger, intelligence agencies confirm that our weakened economy poses the top threat to national security.

How was U.S. security improved by enabling A.I.G. to make massive payments to foreign banks? How is our national interest served by taking us deeper into debt in order to bail out complicit bankers while creating a Russian-style oligarchy? If those simple questions were asked, the answers would lead us to those who orchestrated this greatest heist in history. And to those now enacting policies destined to make a bad situation worse.

March 24, 2009

For more background and a better understanding of the situation AT LARGE, please visit my website at http://www.criminalstate.com and have a quick peek at my book “Criminal State“.