Lost Republic
"On the free market, everyone earns according to his productive value in satisfying consumer desires. Under statist distribution, everyone earns in proportion to the amount he can plunder from the producers."
~ Murray Rothbard

Archive for June, 2009

Sweden: Poorer Than You Think

Posted in Hidden History, Money/Economy/Taxes, Welfare on June 13th, 2009

I’m pretty excited about today’s posts.

When I speak about freedom and Austrian Economics and the evils inherent in Socialism, people often tell me they are not speaking of Socialism as was manifest in the Soviet Union, they are speaking of socialist democracies like Sweden. In other words, they don’t believe in big crimes, but think little crimes are okay.

I believe that in socialist democracies it’s not the socialist (ie. coercive) institutions which are working, it’s the pockets of freedom that exist around them. Encroaching socialism can appear very benign in a prosperous country, because it’s proponents claim credit for the wealth and opportunities created by the remaining pockets of freedom.

Today, I excerpt from three outstanding essays I found at the Ludwig Von Mises Institute.

Sweden: Poorer Than You Think by William L. Anderson

One of the enduring myths of the ‘Third Way’ welfare state is that a nation as a whole can have a high standard of living–even if no one really has to work–as long as government transfers massive amounts of wealth from those who are well off to those who are less well off. For the past four decades, we have been inundated with news stories, books, and public commentary, all of which have exhorted us to be like Sweden.

The Swedes, we have been told, enjoy free medical care, generous welfare benefits, time off from work, and subsidies for just about everything. When one counters that Swedes pay enormously high taxes, the standard reply is, ‘That is true, but look at what they receive for their payments.’

According to a recent study, however, the cat is out of the bag. Relative to household in the United States, Swedish family income is considerably less. In fact, the study concludes, average income in Sweden is less than average income for black Americans, which comprise the lowest-income socioeconomic group in this country.

. . . .

In defense of the Swedes, let me first say that simple comparisons of income can be deceiving. While I have never been to Sweden (even though I have relatives there), I would think that even the poorest sections of Stockholm and other Swedish cities are more livable and attractive than what one finds in many U.S. cities. Even with the high taxes, I think I would rather live in downtown Stockholm than in downtown Detroit or Newark.

However, the study alerts us to something that is much more important, and that is that the European welfare states are not making their citizens wealthier. Over time, the cracks in these relatively wealthy nations are growing larger, and if the disease is not arrested, much of Europe will tumble off into real poverty in the not-so-distant future. Europeans–and, most likely, Americans–seem destined to learn the hard way that large, seemingly intractable welfare systems have their way of destroying the Goose that Laid the Golden Eggs.

While people can debate the present condition of Swedes in Stockholm versus blacks in Harlem, there is a deep issue here that people seem to forget when it comes to welfare states: they are destructive at their roots. Advocates of welfarism concentrate only upon distribution while vilifying production. Such a state of affairs cannot go on forever as governments are forced to cannibalize their own capital structure over time in order to make the system to continue to work.

. . . .

The Swedes and other northern Europeans are somewhat lucky in that they have had a relatively high standard of living. People in southern European nations like Italy and Spain–where high taxes and vast regulatory agencies abound–find themselves to be much poorer and with no prospects of real improvement.

Unfortunately, many Europeans (like our Canadian neighbors) believe that a vast welfare apparatus makes them morally superior to nations that do not have the same scope of benefits. (While one can point out that the United States has a huge welfare bureaucracy itself, it does not offer the same ‘generous,’ long-term benefits of the European states.) While they prattle on about their moral superiority and their egalitarianism, however, something else is happening. They are slowly becoming poorer and poorer, and the welfare state cannot save them. It can only accelerate their downward slide. (Read more from mises.org)

The Sweden Myth

Posted in Hidden History, Money/Economy/Taxes, Welfare on June 13th, 2009

The Sweden Myth by Stefan Karlsson

The alleged recent success of the Swedish economy has allowed welfare statists both inside and outside of Sweden to argue that high taxes and an extensive welfare state are good for the economy. To fully understand this fallacy, we should review Sweden’s economic history.

Until the second half of the 19th century, Sweden was fairly poor. But far-reaching free market reforms in the 1860s allowed Sweden to benefit from the spreading Industrial Revolution.

And so, during the late 19th and early 20th centuries, Sweden saw its economy rapidly industrializing, driven by the many Swedish inventors and entrepreneurs.

During that time, Sweden produced extraordinarily many inventions, given its small population, including: dynamite, invented by Alfred Nobel (who established the Nobel Prize); the self-aligning ball bearing, invented by Sven Wingquist (who used this to create the SKF company); the sun-valve, invented by Gustav Dahlen (who used it to found industrial gas company AGA); the gas absorption refrigerator, invented by Baltzar von Platen (which was later used by Electrolux).

In addition, there were countless non-inventing entrepreneurs during that period: car manufacturers Volvo and Saab, and telecommunications company Ericsson. Indeed, with just a few exceptions, nearly all large Swedish companies were started during the late 19th and early 20th centuries, which was not only a period of strong growth, but also the time when the foundation for later economic growth was laid.

Another factor which continued Swedish prosperity was the fact that Sweden was able to stay out of both World Wars, and indeed all other wars as well. Sweden is in fact the country with the longest consecutive period of peace, having fought no war since 1809, when Sweden was invaded by Russia, losing Finland to the invader. . . .

As a result of its free market policies, the resourcefulness of its people, and its successful avoidance of war, Sweden had the highest per-capita income growth in the world between 1870 and 1950, by which time Sweden had become one of the world’s richest countries, behind only the United States and Switzerland, and Denmark (who have since also fallen behind because of high taxes).

But the foundation for future trouble had already been created. In 1932, the Social Democrats rose to power in the face of the Great Depression. And like FDR in America and Adolf Hitler in Germany, they started to expand government power over the economy. Until 1932, government spending had been kept below 10% of GDP in Sweden, but the Social Democrats, under their leader Per Albin Hansson, wanted to change this and remake Sweden into a ‘folkhem’ (‘people’s home’), a term Swedish Social Democrats adopted from the Fascists in Italy.

Between 1950 and 1976, Sweden experienced an expansion in government spending unprecedented during a period of peace, with government spending to GDP rising from about 20% in 1950 to more than 50% in 1975. Virtually every year, taxes were increased while the welfare state expanded relentlessly, both in the form of a sharp increase in the number of government employees and ever more transfer payment benefits.

During the first 20 years, this relentless government expansion took place seemingly without ill effect, as Sweden benefited from rapid global growth – although Sweden’s growth had already started to slip in relative terms, from well above average to just average. This changed in the 1970s after Olof Palme, from the left wing of the Social Democratic party became Prime Minister. Palme stepped up the socialist transformation in Sweden, rapidly increasing anti-business regulations and sharply increased payroll taxes.

The payroll-tax increases, along with increasing wage demands from unions, made Swedish businesses highly uncompetitive on the global markets, something which Palme decided to solve by devaluing the Swedish krona. As a result, price inflation rose sharply, leading to repeated devaluations. . . .

. . . . the recession became Sweden’s deepest by far since the Great Depression, with GDP in 1993 being 5% lower than in 1990, with employment falling more than 10%, and the budget deficit rising to more than 10% of GDP. By then Sweden had fallen to between 15th and 20th place in international income comparisons, a decline from which it has never
since recovered.

After this deep downturn, Sweden has performed much better for a number of reasons. The 20% decline in the value of the krona in late 1992 gave a strong boost to exports and together with the dramatic lowering of interest rates, this helped kick-start a cyclical recovery in late 1993. Moreover, a number of free market reforms implemented during Ingvar Carlsson and conservative Carl Bildt (who was Prime Minister between 1991 and 1994) had helped raise the structural growth potential of the Swedish economy.

Apart from the already mentioned reforms of reduced marginal tax rates and abolished currency controls, deregulated bank lending and significantly lower inflation, this included privatizations of several state-owned companies and deregulation of several key sectors, including the retail sector, the telecommunications sector and the airline industry. Also, when the massive budget deficit was eliminated, even the Social Democrats realized the need for deep spending cuts, which together with the typical cyclical decline in the burden of spending during booms helped reduce the extremely bloated burden of government spending somewhat.

All of this has helped Sweden recover in relative terms from the stagnation of the 1970s and 1980s and the deep economic downturn in the early 1990s. It is this relative recovery that is now seized upon by the Social Democrats and their sympathizers inside and outside of Sweden when they claim that the Swedish model of high taxes and a big welfare state is successful.

Yet as should be clear, the relative improvement of performance is due not to high taxes (lower now than previously), but to free-market reforms. (Read more from mises.org)

How the Welfare State Corrupted Sweden

Posted in Hidden History, Welfare on June 13th, 2009

How the Welfare State Corrupted Sweden by Per Bylund

Old people in Sweden say that to be Swedish means to supply for your own, to take care of your self, and never be a burden on anyone else’s shoulders. Independence and hard work was the common perception of a decent life, and the common perception of morality. That was less than one hundred years ago.

My late grandmother used to say something had gone wrong with the world. She was proud to never have asked for help, to have always been able to rely on herself and her husband. . . .

My grandmother, born in 1920, was of the last generation to have that special personal pride, of having a firm and deeply rooted morality, of being a sovereign in life no matter what – to be the sole master of one’s fate. The people of her generation experienced and endured one or two world wars (though Sweden never took part) and were raised by poor Swedish farmers and industrial workers. They witnessed and were the driving force behind the Swedish ‘wonder.’

They would gladly offer to help those in need even if they only had little, but were not likely to accept anyone’s help if offered. They felt pride in being competent to take care of themselves; they cherished independence of others, of never having to ask for help. They figured, if they couldn’t make it themselves, they had no right to ask for help.

. . . .

[Today] Swedes generally welcome proposals to hand over more power to politicians and they even tend to ask for higher taxes.

Decent morality is long gone. It was completely destroyed in little more than two generations – through public welfare benefits and the concept of welfare rights.

. . . .

[M]y parents’ generation went to public schools where they were taught mathematics and languages as well as the superiority of welfare and the morality of the state. They learned the workings of the machinery of the welfare state and gained a totally new (mis)conception of rights: all citizens enjoy a right – only through being citizens – to education, health care, unemployment, and social security.

Being an individual, they were taught, means having a right to support for your individual needs. Everybody has a right to all the resources necessary to pursue one’s own and society’s happiness, they were told. And everybody should enjoy the right to put their children in state daycare centers while working, making it possible for every family to earn two salaries (but not enough time to raise their children). The opportunities for “the good life,” at least financially, must have seemed enormous to the older generations.

This new morality permeated the populace and became the “natural” state of things, at least in their minds. This generation, born during the two or three decades following World War II, became considerably different from their parents’ generation morally and philosophically. They got used to the enormous post-war economic growth (thanks to Sweden never entering the war) and the ever-increasing welfare rights of the rapidly growing state.

. . . .

The voting masses, children of the welfare state dependent on its system of logic, supported the tax hikes, which quickly climbed to 50% and higher. And they demanded social benefits at taxpayers’ expense. . . .

Through the powerful labor unions, wage-earning Swedes were awarded raises every year regardless of real productivity, and in time annual raises of salaries became normality. People who didn’t get a raise started considering themselves “punished” by their evil employer, and there were increasing demands for legal help in the struggle against employers. One has a “right” to a better salary next year just as the current salary must be better than last year’s; so the thinking goes. . . .

The children of this generation, born in the 1970s, ’80s, and ’90s commonly had a “free” upbringing (based on the ideals of 1968), essentially meaning a childhood “free from rules” and “free of responsibility.” For this generation there is no causality whatsoever in social life; whatever you do is not your responsibility – even having children. These are the current younger adults in Swedish society.

I am myself part of this second generation of people raised with and by the welfare state. A significant difference between my generation and the preceding one is that most of us were not raised by our parents at all. We were raised by the authorities in state daycare centers from the time of infancy; then pushed on to public schools, public high schools, and public universities; and later to employment in the public sector and more education via the powerful labor unions and their educational associations. The state is ever-present and is to many the only means of survival – and its welfare benefits the only possible way to gain independence. . . .

On May 14, the national trade workers’ union demanded the state “redistribute” jobs through offering people in their 60s state pensions if they step down and their employers employ young, unemployed people in their stead. In the labor union’s calculations, such a stunt would “create” 55,000 jobs.

What this shows is that the only perceivable way of finding jobs for the young seems to be to “relieve” older people of theirs; job positions are scarce and unemployment is increasing even as demand for goods and services is going up – thanks to heavy state regulation in the marketplace. The welfare state creates problems and conflicts on many levels, forcing people to compete for shares of continuously decreasing wealth. . . .

My mother, a middle school teacher, has had to face her pupils’ parents demanding she do “something” about their stressful family situation. They demand “society” take responsibility for their children’s upbringing since they have already spent “too many years” caring for them. (“Caring” usually means dropping them off at the public daycare center at 7 am and picking them up again at 6 pm.)

They loudly stress their “right” to be relieved from this burden. . . .

What we are now seeing in Sweden is the perfectly logical consequence of the welfare state: when handing out benefits and thereby taking away the individual’s responsibility for his or her own life, a new kind of individual is created – the immature, irresponsible, and dependent. In effect, what the welfare state has created is a population of psychological and moral children – just as parents who never let their children face problems, take responsibility, and come up with solutions themselves, make their offspring needy, spoiled, and utterly demanding. (Read more from mises.org)

Sweden’s Recycling Fiasco

Posted in Dictatorship, Recycling on June 13th, 2009

“As a Swede I get to hear a lot of the myths of how wonderful a country Sweden supposedly is – the ‘prosperous socialism‘ it stands for, a role model for the rest of the world. For instance, quite a few friends from around the world have commended me on Swedish recycling polices and the Swedish government’s take on coercive environmentalism.

. . . .

So what do you do with your waste? Most homes have a number of trash bins for different kinds of trash: batteries in one; biodegradables in one; wood in one; colored glass in one, other glass in another; aluminum in one, other metals in another; newspapers in one, hard paper in another, and paper that doesn’t fit these two categories in a third; and plastic of all sorts in another collection of bins. The materials generally have to be cleaned before thrown away – milk cartons with milk in them cannot be recycled just as metal cans cannot have too much of the paper labels left.

The people of Sweden are thus forced to clean their trash before carefully separating different kinds of materials. This is the future, they say, and it is supposedly good for the environment.

. . . .

Their first measure was to redesign all containers so that it is more difficult throwing the ‘wrong’ trash in them. For instance, containers for glass have only small, round holes where you put your bottles, and containers for hard paper and carton materials have only letter-slit shaped holes (you need to flatten all boxes before recycling – that’s the law).

Well, that didn’t do the trick. People kept on cheating. And the more difficult the authorities made it to cheat, the more difficult it was to get rid of the trash even if you intended to put it in the right place. So people went to these centers and simply put everything next to the containers instead – why bother? The authorities responded by appointing salaried ‘trash collection center spies’ (!) to document who was cheating so that they could be brought to justice. (There have actually been a few court cases where people have been tried for not following recycling laws.)

. . . .

The structure works the way all centrally planned structures work: it increases and centralizes power while the attempted (expected) results do not materialize. In this case, the structure works: people do sort their trash in different bins – they have no choice. Also, government garbage collection companies do not have to do as much work while getting paid more than ever before.

. . . .

What is interesting about this Soviet-style planned recycling is that it is officially profitable. It is supposed to be resource efficient, since recycling of the materials is less energy-consuming than, for instance, mining or the production of paper from wood. It is also economically profitable, since the government actually generates revenues from selling recycled materials and products made in the recycling process. The final recycling process costs less than is earned from selling the recycled products.

However, this is common government logic: it is “energy saving” simply because government does not count the time and energy used by nine million people cleaning and sorting their trash. Government authorities and researchers have reached the conclusion that the cost of (a) the water and electricity used for cleaning household trash, (b) transportation from trash collection centers, and (c) the final recycling process is actually less than would be necessary to produce these materials from scratch. Of course, they don’t count the literally millions of times people drive to the recycling centers to empty their trash bins; neither do they count, for instance, energy and costs for the extra housing space required for a dozen extra trash bins in every home.

Economically, Swedish recycling is a disaster. Imagine a whole population spending time and money cleaning their garbage and driving it around the neighborhood rather than working or investing in a productive market! According to the government’s books, more money flows in than flows out; therefore recycling is profitable. But this ignores the costs of coercion.

. . . people’s garbage piles up next to the overflowing containers while the government contractors sit idle: they are only paid to empty the containers on schedule, not to pick up the trash sitting next to these containers. The result? Disease and rats. Newspapers have been reporting on a ‘rat invasion’ in Stockholm and in other Swedish cities in recent years.

. . . .

Interestingly enough, the system is too socialist even for Sweden’s number one socialist newspaper, Aftonbladet. In an op-ed on January 4, 2002, Lena Askling wrote on the public garbage collection system:

We [consumers] are supposed to sort, compost, parcel, store, and transport the trash. We are supposed to keep on with this cockamamie of storing compost garbage in small containers in apartments and villas and then transport the stinking, leaking trash to dedicated bins or collection centers, which seem to always be brim-full.

Why in the name of the Lord cannot the government introduce ‘market incentives’ to stimulate industry and producers to develop rational packaging and garbage disposal systems enabling recycling, energy production and future import revenue? And perhaps a consumer friendly and hygienically acceptable system instead of the current trash and filth chaos?

While I’m waiting, mice are scurrying around in my garbage compartment.

Even Askling, who writes socialist propaganda for a living, knows the Swedish recycling scheme doesn’t work; and she concludes it is in need of more market.

Please enlighten me, wherein lies the so-often-acclaimed success of this system?

Israeli protesters to Obama: “Save Us From Ourselves!”

Posted in Israel/Palestine on June 12th, 2009

Israel needs more people like these, and as long as America ties its fortune and reputation to Israel, so do we.

AP Shamelessly edits Palestinian suffering from Obama’s speech

Posted in Big Media, Censorship, Israel/Palestine on June 12th, 2009

Important qualifier: Though they didn’t mention it, the transcript was clearly abridged. I guess the person who did the abridging wasn’t interested in Obama’s historic recognition of Palestinian suffering.

“An alert KABOBfest reader noted that an AP transcript of Obama’s speech “as provided by CQ Transcriptions” left out the President’s comments on the suffering of the Palestinians.

The AP’s version has him jump from his moving description of Nazi crimes against the Jews to a warning against the dangers of a nuclear armed Iran:

Six million Jews were killed, more than the entire Jewish population of Israel today. Denying that fact is baseless. It is ignorant, and it is hateful.

It’s about preventing a nuclear arms race in the Middle East that could lead this region and the world down a hugely dangerous path.

In the transcripts posted on the White House’s website, the President’s words on the Palestinian experience are posted:

On the other hand, it is also undeniable that the Palestinian people — Muslims and Christians — have suffered in pursuit of a homeland. For more than 60 years they’ve endured the pain of dislocation. Many wait in refugee camps in the West Bank, Gaza, and neighboring lands for a life of peace and security that they have never been able to lead. They endure the daily humiliations — large and small — that come with occupation. So let there be no doubt: The situation for the Palestinian people is intolerable. And America will not turn our backs on the legitimate Palestinian aspiration for dignity, opportunity, and a state of their own. (Applause.)

Given the accolades for that being the greatest presidential summary of Palestinian victimization under Israeli rule ever, it is shocking it was selectively excised from the transcripts.

Looking at the AP’s version, which is hosted on Yahoo, it is clear the transcripts are abridged. First, they do not acknowledge that. Second, why remove such an important point? I cannot help but think it was motivated by pro-Israel bias.” (Read more from kabobfest.com)

Is the cat out of the bag? Open discussion of money printing and the Fed on CNBC.

Posted in Big Media, Money/Economy/Taxes on June 12th, 2009

Architects & Engineers for 9/11 Truth

Posted in 9/11 on June 11th, 2009

See their website at www.ae911truth.org.

WTC7 Fire-Induced Collapse vs. Windsor Building Fire

Posted in 9/11 on June 11th, 2009

HR 1207 up to 212 cosponsors!!!

Posted in End the Fed, Iraq, Israel/Palestine, Money/Economy/Taxes, Ron Paul on June 10th, 2009

From a Campaign for Liberty email:

“Congressman David Loebsack of Iowa’s 2nd Congressional District has joined Congressmen Latham, Boswell and King as a co-sponsor of HR 1207 The Federal Reserve Transparency Act. We have confirmed with Congressman Ron Paul’s office that as of right now there were 212 co-sponsors of this vital legislation. This information is direct and is ahead of the Thomas.gov website. Without the hard work of all Campaign for Liberty members this accomplishment would likely not have been possible. A special thanks to those of you live in the 2nd Congressional District, all of your hard work with petitions, writing letters, calling and personally visiting the congressman’s office has finally paid off. ”

YEEEAH!!!

Coups Arranged or Backed by the USA

Posted in Hidden History on June 10th, 2009

What I see in this, is our 22 million government bureaucrats looking for meaning and excitement in their empty, pathetic lives. The founding fathers had it right. Don’t engage in foreign wars.

They do not hate us because we are free. They do not hate us because they are evil. They hate us because we are over there.

“Since 1945, the USA has been responsible either directly or indirectly of helping remove dozens of governments, many democratically elected, around the world. Sometimes the events are kept secret for years and only slowly come out. Other times, the events are the cause of demonstrations, anger and resentment at the time they occur. . . .

In the list below only successful changes of government are listed. Many attempts have failed. Cuba is the best example of this.

Year Country Reason Given Actual Reason
1949 Syria Communism Elected government against USA political interests and pro-Palestinian.
1949 Greece Communism Elected government against USA political and economic interests.
1952 Cuba None Elected government against USA business interests.
1953 Iran None Elected government against USA oil interests.
1953 British Guyana None Access to sugar and bauxite.
1954 Guatemala Communism Elected government against USA business interests.
1955 South Vietnam Communism French backed leader replaced by USA backed leader.
1957 Haiti Haiti is near the USA Previous government against USA business interests.
1958 Laos None Pro-USA government wanted.
1959 Laos None Pro-USA government wanted.
1960 South Korea Communism Previous leader not strong enough for USA.
1960 Laos None Pro-USA government wanted.
1960 Ecuador Communism Previous government too independent in foreign policy.
1963 Dominican Republic Business Interests Elected government against USA business interests.
1963 South Vietnam None Previous leader’s policies led to televised suicides.
1963 Honduras Communism Pro-USA government and access to resources.
1963 Guatemala Communism Military government was about to allow elections.
1963 Ecuador None Elected government too independent.
1964 Brazil Communism Access to resources and cheap labour.
1964 Bolivia Communism Previous government too independent in foreign policy.
1965 Zaire None Access to cobalt, copper and diamonds.
1966 Ghana None Previous government too independent in foreign policy.
1967 Greece None Military bases.
1970 Cambodia None Previous king against USA political interests.
1970 Bolivia None Country took ownership of its oil and tin.
1972 El Salvador Communism Elected leader against USA business interests.
1973 Chile Communism Elected government against USA business interests.
1975 Australia None Elected government had unsuitable foreign policy.
1979 South Korea None Pro-USA government wanted.
1980 Liberia Democracy Pro-USA government wanted.
1982 Chad None Pro-USA government wanted.
1983 Grenada Democracy Pro-USA government wanted.
1987 Fiji Democracy Previous elected government supported nuclear-free Pacific.
2002 Venezuela None Disagreed with foreign policy of elected government.
2004 Haiti Fraudulent elections Disagreed with economic policy of elected government.

William Blum, USA writer from the book, “Rogue State”:
“From 1945 to the end of the [20th] century, the USA attempted to overthrow more than 40 foreign governments, and to crush more than 30 populist-nationalist movements struggling against intolerable regimes. In the process, the USA caused the end of life for several million people, and condemned many millions more to a life of agony and despair”.

Michael Krenn, quoting the USA charge d’Affairs in 1929:
“Until the Venezuelan people could be trusted to make the right decisions concerning their political and economic direction – and that time was deemed to be in the very distant future – it was best for all concerned that they be kept safe from democracy.”

CIA document, dated 10 September 1973 about Chile:
“The coup attempt will begin September 11. All three branches of the armed forces and the Carabineros are involved in this action. A declaration will be read on Radio Agricultura at 7 A.M. on 11 September.”

Jack Kubisch, Deputy Assistant Secretary of State. Testimony before the USA House Subcommittee on Inter American Affairs 20 September 1973 about the Chilean coup:
“Gentlemen, I wish to state as flatly and as categorically as I possibly can that we did not have advance knowledge of the coup that took place on September 11.”

Pentagon’s Planning Guidance for the Fiscal Years 1994 – 1999, a USA planning document:
“Our first objective is to prevent the re-emergence of a new rival… we must maintain the mechanisms for deterring potential competitors from even aspiring to a larger regional or global role.”

Bill Clinton, USA president, speaking in Greece;
“When the junta took over in 1967 here the United States allowed its interests in prosecuting the Cold War to prevail over its interests – I should say its obligation – to support democracy, which was, after all, the cause for which we fought the Cold War. it is important that we acknowledge that.”

Read more at krysstal.com (Including a brief elaboration of each coup.)

GAO Gains Some Powers to Examine Federal Reserve’s Actions

Posted in End the Fed, Money/Economy/Taxes on June 9th, 2009

Part of me is concerned this is weak legislation designed to not really do anything besides take steam away from the much stronger HR 1207 Federal Reserve Transparency Act. They are very scared.

“On May 20th, President Obama signed into law a ‘Fed clause’ giving the Government Accounting Office (GAO) the ‘power to examine the Federal Reserve’s emergency aid to specific companies, such as AIG, Bank of America Corp. and Citigroup Inc.’.

As Bloomberg writes:

The new law is designed to give the GAO access to records and people at the Fed’s Board of Governors in Washington as well as the 12 district banks, such as the New York Fed, which has been the government’s lead day-to-day supervisor of AIG.

While this is a good first step, Bloomberg correctly points out:

The new Fed audit law differs from more intrusive legislation introduced in the House by Ron Paul, a Texas Republican, and in the Senate by Bernie Sanders, a Vermont independent. Those bills, which haven’t made it past the initial stage of being introduced in Congress, would remove limits on GAO audits of the Fed and direct the agency to issue a report on the central bank by the end of next year…

Fed Chairman Ben S. Bernanke indicated in testimony May 5 that he wouldn’t object to GAO audits of the central bank as long as there was no examination of monetary policy. Fed officials are wary of political interference into their ability to tighten credit and contain inflation…

‘I certainly would resist any attempt to dictate to the Federal Reserve how to make monetary policy,’ Bernanke said.

Senator Charles Grassley, the Iowa Republican who sponsored the amendment allowing the Fed audits, said May 6 that while the authority was narrower than he would have liked, ‘it is a reasonable step in the right direction, and it does not threaten monetary policy independence.’

Of course, ‘monetary policy independence’ may not be such a good thing, given that the Fed presided over both the Great Depression and the greatest financial bubble in the history of the world (the one from 2001-2007), and the Fed has failed by its own terms to provide any counter-cyclical balance to the momentum economy.” (Read more from washingtonsblog.com)

Libertarians on Obama’s rewriting of bankruptcy laws

Posted in Constitution, Dictatorship, Money/Economy/Taxes on June 9th, 2009

. . . and the constitutional and economic implications.

Republicrats Puppet Theater

Posted in Big Media on June 8th, 2009

Republicrats Puppet Theater

U.S.S. Liberty

Posted in Hidden History, Israel Lobby, Israel/Palestine on June 8th, 2009

Navy Vet Honored, Foiled Israeli Attack

. . . . Terry Halbardier['s] bravery and ingenuity as a 23-year-old Navy seaman spelled the difference between the murder of 34 of the USS Liberty crew and the intended massacre of all 294.

The date was June 8, 1967; and for the families of the 34 murdered and for the Liberty’s survivors and their families, it is a ‘date which will live in infamy’ — like the date of an earlier surprise attack on the U.S. Navy.

The infamy is two-fold: (1) the Liberty, a virtually defenseless intelligence collection platform prominently flying an American flag in international waters, came under deliberate attack by Israeli aircraft and three 60-ton Israeli torpedo boats off the coast of the Sinai on a cloudless June afternoon during the six-day Israeli-Arab war; and (2) President Lyndon Johnson called back carrier aircraft dispatched to defend the Liberty lest Israel be embarrassed — the start of an unconscionable cover-up, including top Navy brass, that persists to this day.

Given all they have been through, the Liberty survivors and other veterans – who joined Halbardier to celebrate his belated receipt of the Silver Star – can be forgiven for having doubted that this day would ever come. In the award ceremony at the Visalia (California) office of Rep. Devin Nunes, the Republican congressman pinned the Silver Star next to the Purple Heart that Halbardier found in his home mailbox three years ago.

Nunes said, ‘The government has kept this quiet I think for too long, and I felt as my constituent he [Halbardier] needed to get recognized for the services he made to his country.’

. . . .

The Liberty survivors are big on getting the truth out about what actually happened that otherwise beautiful day in June 1967. Last Wednesday’s award of the Silver Star to Terry Halbardier marked a significant step in the direction of truth telling. Is it too much to hope that the example set by Nunes may embolden other lawmakers to right the wrongs done to their Liberty-veteran constituents — and thus to chip away at what’s left of the cover-up?

Halbardier said he accepted his Silver Star on behalf of the entire 294-man crew. He and fellow survivor Don Pageler expressed particular satisfaction at the wording of the citation, which stated explicitly — with none of the usual fudging — the identity of the attackers: ‘The USS Liberty was attacked by Israeli aircraft and motor torpedo boats in the East Mediterranean Sea. . . .’ In the past, official citations, like Captain McGonagle’s, had avoided mentioning Israel by name when alluding to the attack.

I think former U.S. Ambassador Edward Peck put it best in condemning this kind of approach as ‘obsequious, unctuous subservience to the peripheral interests of a foreign nation at the cost of the lives and morale of our own service members and their families.’ Strong words for a diplomat. But right on target.

Were it not for Halbardier’s bravery, ingenuity, and technical expertise, the USS Liberty would surely have sunk, taking down much – if not all – of the crew. Israeli commando helicopters were ready to take care of any personnel still that survived the sinking.

The first thing the Israeli aircraft bombed and strafed were the Liberty’s communications antennae and other equipment. They succeeded in destroying all the antennae that were functional. One antenna on the port side, though, had been out of commission and had escaped damage.
In receiving the Silver Star, Halbardier made light of his heroism, claiming that he was just a guy from Texas who could do a whole lot with simple stuff like baling wire. (In the infantry we called this kind of thing a ‘field expedient.’) In any case, with his can-do attitude and his technical training, he figured he might be able to get that particular antenna working again. But first he would have to repair a cable that had been destroyed on deck and then connect the antenna to a transmitter.

The deck was still being strafed, but Halbardier grabbed a reel of cable, ran out onto the deck, and attached new cable to the antenna so a radioman could get an SOS out to the 6th fleet in the Mediterranean.

Voila. ‘Mayday’ went out; almost immediately the Israeli aircraft and torpedo ships broke off the attack and went back to base; the Israeli government sent a quick apology to Washington for its unfortunate ‘mistake;’ and President Johnson issued orders to everyone to make believe the Israelis were telling the truth — or at least to remain silent.

To their discredit, top Navy brass went along, and the Liberty survivors were threatened with court martial and prison if they so much as mentioned to their wives what had actually happened. They were enjoined as well from discussing it with one another. As Liberty crewman Don Pageler put it, ‘We all headed out after that, and we didn’t talk to each other.’

. . . .

Despite Israeli protestations, the accumulated evidence, including intercepted voice communications, is such that no serious observer believes Israel’s ‘Oops’ excuse of a terrible mistake.

The following exchanges are excerpts of testimony from U.S. military and diplomatic officials given to Alison Weir, founder of ‘If Americans Knew’ and author of American Media Miss the Boat:

Israeli pilot to ground control: ‘This is an American ship. Do you still want us to attack?’
Ground control: ‘Yes, follow orders.’
. . . . . . . . . . . . . . . . . . . . . ..

‘But sir, it’s an American ship — I can see the flag!’
Ground control: ‘Never mind; hit it!’

Haviland Smith, a CIA officer stationed in Beirut during the Six-Day War, says he was told that the transcripts were ‘deep-sixed,’ because the U.S. government did not want to embarrass Israel.”

Read more at afterdowningstreet.org or visit ussliberty.org.

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