Secrets of an Iran Contra Insider
by Al Martin
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by Al Martin
Bush Cabal Strategy: The Pounding of Fists, The Gnashing of Teeth, and The Shredding of Documents
(July 29) The aggregate losses over the last eleven trading sessions are over $1.5 trillion, as of last Monday. It's interesting to note that historically the New York Stock Exchange composite has lost more equity value in the last eleven trading sessions than it gained in the first two hundred years of its history. And the free fall continues, while George Bush's reaction is actually turning to anger. He was pounding his fists on the podium -- "Why aren't the people listening to me?" and "The economy is improving, so why don't they have any confidence?" And somebody cried out, "It's not the economy we're worried about; it's you." Immediately the Secret Service was dispatched to find out who said it. After all, it could be a "terrorist," and that's probably who they're going to blame. In fact, that could be a new definition -- an "economic terrorist" is somebody who refuses to buy stock because they don't have any confidence.
Donald Rumsfeld was starting his new Department of Defense's War on Leakers. He's pounding his fist on the table saying leakers should be put in jail and they're leaking war plans that could get American soldiers killed. And one of the reporters in the audience said, "Well, the problem is that every time a document gets leaked from the Department of Defense, the Department of Defense has to wait a couple weeks to bang the drum to find out if it was the White House which actually leaked it out." They're referring to the documents referenced in the New York Times article about so-called classified documents, including war plans for a potential invasion of Iraq, which were leaked. This guy wouldn't let it go.
While Rumsfeld was pounding his fists about the leaks, this guy was saying, "Can you tell us where this leak came from? How do you know that it didn't come from the White House?" Someone actually called him on it and pressed him hard, and Rumsfeld didn't like it.
Finally Rumsfeld was forced to admit that they didn't know where the leaks were coming from, and that yes they were aware that classified secret Department of Defense documents, vis-à-vis the would-be invasion of Iraq had been leaked out by the White House before for political purposes. They admitted that, but Rumsfeld said but we support the president's war on terrorism. He was trying hard to deflect the question.
There is good news too. Tom Ridge, the erstwhile Director of Homeland Security, admitted what everybody already knows -- that congressional support to overturn posse comitatus is diminishing. Contrary to previous expectations, the Bush Regime expects that Congress will not overturn posse comitatus anytime soon. However the Office of Homeland Security is submitting a series of briefs, instructing the president how to get around the Posse Comitatus Act, by using every possible nuance and loophole they can think of. The Posse Comitatus Act disallows the use of military troops for domestic law enforcement.
Tom Ridge actually said that any Senate Democrat who opposed the overturning of posse comitatus was "disloyal" and presented a potential security threat to the nation. Then Ridge started pounding his fist, and said we will give our military increased law enforcement powers in this country.
Remember the Anthrax Scare in Washington? The government has admitted that all of its anthrax testing kits were faulty. All of the Office of Homeland Security anthrax testing kits were twenty years old or more, and they didn't bother to buy new ones. The kits gave faulty false positive results and the results were completely flawed. Because of this, the Federal Government shut down many buildings, which did not need to be shut down and forced thousands of federal employees to take antibiotics that they didn't need to take. But they're going to correct the problem, they said. They're going to spend a fresh billion dollars with some company in Illinois. But this is typical with this "war on terrorism." They make a big deal out of something, then six months later, or even six weeks later, we find out that it didn't work and nobody knew what was going on.
Then Bush went to a presentation at the Argonne Laboratory to see new "high tech weapons" in the "war on terrorism." They showed a picture of the new beefed-up SUV vehicle with the satellite dish and aerials. They also showed a picture of the new domestic surveillance hover drone (See previous column Flying Fascism on Your Doorstep)
Some guy was explaining to him how it all worked, while Bush was running his fingers all over it. It was like a kid with a new toy. When he was told about the new domestic hover drone and its capabilities, that it could listen through walls, take pictures of people through walls and track disloyal citizens through streets, Bush says, "Oooh, I like this stuff."
Congressional committees are currently investigating the nation's largest banks, which, of course are Republican controlled, and the loans that they gave out to Enron, WorldCom and other Republican controlled corporations, which they knew were committing fraud.
The banks are now starting to admit that they knew their financial conditions were deleterious at best. The banks are already admitting that the way they lent money included conspiring to create fictitious assets with the company by false trading profits which didn't exist.
An interesting connection yet to be uncovered is that the Bush White House was behind it. My contention is that the Bush White House nudged them (and it obviously wouldn't take much nudging) that encouraged Republican-controlled banks to lend ever more billions to corporation that they knew were failing. And why would they have so much influence and power? Because it's all the same group of people.
We have the Bush Administration in government. We have banks whose boards of directors read like a Who's Who of the Republican Party. We have corporations committing fraud whose senior management and board of directors read like another Who's Who of the Republican Party.
What we'll find, I think, is that the Bush Administration out of desperation suggested to the banks that they continue to loan money to corporations they knew were failing in an effort to buy time. It was an effort to help these failing corporations keep their doors open longer. The Administration simply wanted to buy time, but not for these corporations to turn themselves around. The real reason was to allow time for these Republican Scamscateers to distance themselves from these corporations.
Remember how this all started to unfold - the accounting frauds, Republican Scamscateer connections to these corporations, the massive document shredding at Arthur Andersen and the corporations themselves, massive document shredding at selected security firms, and shredding of documents related to Republican-controlled offshore corporations and holding groups.
What the Bush Administration was doing was buying Republican Scamscateers enough time so that they, in concert with said fraudulent corporations, could distance themselves from those corporations as a matter of record.
They could destroy the paper trail that linked said Republican Scamscateers to said Republican Scam Corporations, to wit WorldCom, Enron, etc. This time was necessary in order to destroy the paper trail.
Through the Senate Subcommittee on investigations, we're hearing that this was very effectively done. It's very hard to prove anything now. Why do you think the case against Kenny Lay, the former Enron chief, hasn't gone to trial yet? You'd think that it would have already. And why hasn't Bernie Ebbers, the former WorldCom head, or any of his assets been seized yet?
The reason is that the Department of Justice is having a hard time establishing a paper trail of these frauds because the links of the Republican Scamscateers to the corporations have been destroyed. Also what the accountants knew about Republican links to said corporations have been destroyed. The corporation themselves have destroyed documents about what they knew regarding Republican Scamscateerism within their own corporations. Also the Scamscateers have been able to have documents destroyed at brokerage firms where they did business. They have been able to have documents destroyed from offshore holding accounts where they hid their ill-gotten gains.
All of this was just an effort to buy time for Republic Scamscateers to distance themselves and the Bush Administration involvement and/or knowledge of these corporations.
If the Democrats play this thing out (why the banks made the loans when they knew it wasn't sound practice), it'll be another thing that enrages the American people.
After all, who gets hurt in the end if the banks have to write off what may prove to be $500 billion in bad corporate loans so far, and which could ultimately expand to a trillion dollars in another six months? Do you think it really makes any difference to the banks themselves? It's not their money.
That's why I say that the next bombshell (it's a two-in-one bombshell) is not only Bush White House's potential involvement in the banks making fraudulent unsound loans, but the economic impact to the nation when the banks have to write off as much as a trillion dollars in bad corporate debt -- at the same time they are writing off record amounts of defaulted consumer debt.
What is the impact six months from now with a dramatically weakened US banking system and with confidence completely lost in the marketplaces?
It should also be remembered that the FDIC and FSLIC are now more severely undercapitalized vis-à-vis potential bank debt exposure than they were even during the Savings and Loan Crisis of 1992.
We heard Greenspan in his Humphrey Hawkins testimony last week talk about how the Bush I and Bush II Administrations have changed the way banks calculate their assets pursuant to insurance payments they must make to the FDIC and FSLIC. This has meant that many banks haven't made any payments at all in a number of years. These are co-insurance payments they are required to make, as a percentage of money they have on deposit and loans they have outstanding.
The Bush Administrations (I and II) have changed the law and watered down the way banks calculate reserves and loan losses. This caused a dramatic drop in bank insurance payments in exchange for which the banks simply increased the amount of political money they were giving to the Republican Party.
The Rigas Family of Adelphia will become the scapegoat in this entire corporate fraud debacle. They will become the Scapegoats Du Jour. You would think that Enron's Kenny Boy would be first in the docket; but he isn't. He's a slippery character. He's kept himself out of the news. You can see how the Bush Administration and Mainstream Media a/k/a Pro-Gov-Net Media work together to keep Kenny Lay and Bernie Ebbers out of the news. Now you have someone who isn't related to the Bush Cabal -- John Rigas of Adelphia.
For anyone who has eyes to see, this belies the entire fraudulent concept of the so-called "liberal media." People don't realize how self-serving that term really is. When the media is called "liberal," this allows them to consistently criticize the media when they want todo so, but on a selective basis. The media is "liberal" when they attack the Bush Cabalists or Republican Scamscateers. Then they're acting like "irresponsible liberal journalists." But every time they co-operate with the Bush Administration to hide something, then they're "practicing responsible journalism."
John Rigas of Adelphia was interviewed coming out of court with his two sons. He said to CNN that his family has never been a big contributor to the Republican Party; therefore he believes that he will be indicted shortly and the Department of Justice will throw the book at them.
And there you have it. The Rigas Family is quite conservative, but they didn't contribute to the right party. Let this be a lesson unto ye all.
Their indictments on fraud will send a two-fold message to the world. The Bush Administration can tell the American people that they're being tough on corporate fraud, but it also sends a message to corporate America - if you were on the right side of it, pal, it wouldn't have happened.
(The RNC did not receive this week's contribution. Therefore you're not going to be given your 60 days to expatriate yourself and your money to your comfortable non-taxable non-extraditable multi-million dollar beach house in Cayman Brac.)
You go to jail or you go to house arrest at Cayman Brac. Which would you prefer?
In other good news, for the first time since 9-11, Bush's public opinion poll popularity is back down to 65%, which is what it was prior to 9-11.
You could almost have a pool on what the next Bush Scam will be to deflect public attention. They're planning a new war with Iraq and when it's flag waving time in Washington and across the nation, you can get away with anything.
Support for the "war on terrorism" has dropped. You can't maintain it at 80% any more. This then has probably moved up the timetable for going into Iraq. Initially they would have probably waited another six months and kept milking it for all it was worth. Iraq's doing this; Iraq's planning that. It's actually more valuable than going into Iraq, because once you go into Iraq and you get rid of Hussein and set up a new secular pro-western administration, that's it. You can't use it as an excuse anymore. But this is a big planet, and of course, you can't forget about Colombia. You could always start a little diversion down there. Then you could make a smooth move from the "war on terrorism" to the "war on drugs."
To sum it all up - do not be deceived by the "rallies" in the equity markets. These were basically short covering rallies. They were not propelled by fresh retail buying; rather they were propelled by speculative long buying, which of course turns into selling a hundred points higher.
(We wanted to thank all the Al Martin Raw.com readers who expressed interest in a new financial newsletter see No Confidence; Bush Cabal Drives US to the Brink of Collapse. We're still considering it)
It's easy to be deceived because the dollar gained a little strength this week. Gold sold off this week because there were some unusually large physical deliveries into the LME (London Metals Exchange) from hedge operations in the mines. This was against some previously hedged gold by some of the mines. The dollar strengthened because there were some shadowy Republican controlled offshore trusts, which had huge short positions in the dollar that they acted to cover.
People should always remember that the stock market is a zero sum game. When we say that there has been a $5 trillion dollars of equity lost since George Bush took power in the United States, that equity hasn't really been lost. It hasn't evaporated into thin air. The $5 trillion just belongs to somebody else now. It belongs to those who are on the other side of the market - those who were short.
And who is it that has been consistently short in the marketplace since the election of George Bush Jr.? It has been none other than the so-called "Smart Republican Money Crowd" through shadowy offshore trusts that no one can seem to find any information about. It shows you how smart the Republicans are in making money. They don't call it the Smart Republican Money Crowd for nothing.
Even Republicans know that when a Bush is coming to office, you short everything. You short stocks. You short the dollar. You go long gold. And you'll be all right. That's simply what you do when a Bush is in office because you know the economic havoc that Bushonian economic policies are going to wreak on our economies and marketplaces. Then you know that Bush = Short.
When they say - vote your wallet - you don't think Republicans vote their wallets? Knowing that the Big Money has always been made on the short side, Republicans always vote their wallets.
Whatever happens, the lows have not been reached because all of the problems we face - accounting fraud, Republican Scamscateerism in corporations, the pension fraud we have previously written about and the banks taking it in the chops for a trillion dollars -- (The Bush Cabal: Turning the USA into a Banana Republic -- not all of this has been revealed yet and discounted by the marketplaces.
Bush economic pundits try to calm down investors by saying the stock market is after all a discounting mechanism, that the market essentially portrays what the economy is going to look like six to nine months out, and therefore the Larry Kudlows and Bill Kristols and the other Reagan-Bush Apologists of this world like to say that the market has discounted all the possible bad news. My assertion is that only a fraction of that bad news has been revealed.
There will be more bad news on the horizon -- when we start to get a grip on pension shortfalls within corporate pension accounts, up to hundreds of billions, and when we start to get a handle on the amount of bad corporate paper the banks are going to write off, currently at $500 billion.
Don't be fooled. We haven't heard the last of the bad news.
The next shoe to drop? Neil Cavuto reported that because of the market meltdown, 40 million Americans have lost 50% or more of their IRA accounts. The AARP says that up to 20 million of those Americans may remain in the work place longer than they had anticipated -- possibly years longer. But who knows how long it could be?
This will keep unemployment rates at artificially high levels and will severely inhibit new job creation.
The joke is - you hope these people have adult children who can support them.
Can you imagine the economic dislocation that will be created if 20 million people stay working longer than they anticipated? This could paint a real bleak picture over the next couple of years for new college graduates.
People can rest assured however that the Starbucks and McDonalds jobs will still be available. They'll still be hiring.
Now that the House has passed the Homeland Security Department legislation, the Bush Regime has created a new cabinet level agency that will have a $38 billion budget and 170,000 employees. Remember how Bush sold it to the people. He said that it would pay for itself by the decreases we make in operating budgets in other federal agencies, whose responsibilities will be transferred or taken over by the Department of Homeland Security.
As reported by MSNBC, all of these agencies have had increases in their budgets instead and they have no intention of being absorbed or being streamlined. In other words, the way that Bush sold this to the people was a complete lie.
Last week Bush paid a rare visit to Congress, and he was laughing and smiling and being unusually gregarious. He had just been told that one of the most long held and cherished goals of the Bush Cabal had been reached, namely that the top 1% of the American public, 78% of whom are Republican, now control two thirds of the nation's private wealth.
You combine that with the passage of the Department of Homeland Security, passed as a result of his lies that it wouldn't cost the taxpayers anything, and it reminded me of the movie "Red Corner." Richard Gere is standing in the accused box in Beijing's central court before the three judges. He's handcuffed and he finally can't take it any more. His chief accuser is Colonel Ming, and Gere jumps up and says, "Your honor, you allow this man to stand and all he's doing is laughing and lying." The colonel just laughs and lies and destroys evidence and conspires.
And it made me think of the way that Bush has been acting the last couple days - laughing and lying. Now you have George Bush, The Laughing and Lying Man.
There was also a report on Greenspan in the news, but he denied it. Evidently he made a secret comment when Jeb Bush was elected governor. Greenspan said that if the people put Bushes back into the White House, they'd get what they deserve.
How many millions must see their retirement plans destroyed?
How many millions must lose their jobs?
How many millions must be forced into bankruptcy?
How many of our hard-won rights and liberties must we be stripped of, in the name of State Security, before we get up off our knees and put an end to Bushonian Cabalism in the voting booths?
AL MARTIN is America's foremost whistleblower on government fraud and corruption. A retired US Navy Lt. Commander and former officer in the Office of Naval Intelligence, he has testified before Congress (the Kerry Committee and the Alexander Committee) regarding Iran-Contra. Al Martin is the author of "The Conspirators: Secrets of an Iran Contra Insider" (2001, National Liberty Press, $19.95; Toll FREE order line: 1-866-317-1390) He lives at an undisclosed location, since the criminals named in his book have been returned to national power and prominence. His column "Behind the Scenes in the Beltway" is published regularly on Al Martin Raw: Criminal Govt Conspiracy (http://www.almartinraw.com)
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Last Weekend's Luncheon Menu at the Redstone Arsenal
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Double-Dealing: Over the Road Explosives, the FBI Hanssen Fiasco and the Government-Media
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Bush Cabal Heaven: The American Imperial Era Begins The Reign of George "Caesar" Bush: More Fraud, More War and More Power to the State
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Everybody's Got Their Own Terrorist
The War-On-Terrorism Scam
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Clueless In Afghanistan… The Sequel.
Choking on the Enron Pretzel a/k/a Clueless in Guantanamo
Coming Soon: Flying Fascism on Your Doorstep
The Looting of America:Reagonomics, Clintonomics & Enronomics
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Mr. Bizarro, Airline Insecurity, and You
The Bushonian Agenda: Citizen Profiling & Internal Security
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The Case for Sedition: High Crimes of the Bush Cabal (Part 1)
The Case for Sedition: Increasing Hostility and Bush Cabal Fraud (Part 2)
Plugging the Leaks in the Illegal Weapons Auctions, Etc.
Idle Afghan Women and Other Terrorist Threats
Scams Away: The Boom Is Falling
Operation Sellout and Other Humorous Interludes
The Missing Trillions and Other Government Scams
Unhappy Americans, Gay Afghans
The Global Economic Meltdown, a/k/a The Jack Stephens Challenge
The Bush Cabal: Turning the USA into a Banana Republic
No Confidence; Bush Cabal Drives US to the Brink of Collapse
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