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Monday, February 2, 2015

Exclusive: Secret tapes undermine Hillary Clinton on Libyan war

Joint Chiefs, key lawmaker held own talks with Moammar Gadhafi regime
By Jeffrey Scott Shapiro and Kelly Riddell - The Washington Times - Wednesday, January 28, 2015

First of three parts - See link at the end to hear secret tapes



Top Pentagon Officals and a Senior Democrat in Congress so distrusted Secretary of State Hillary Rodham Clinton’s 2011 march to war in Libya that they opened their own diplomatic channels with the Gadhafi regime in an effort to halt the escalating crisis, according to secret audio recordings recovered from Tripoli.

The tapes, reviewed by The Washington Times and authenticated by the participants, chronicle U.S. officials’ unfiltered conversations with Col. Moammar Gadhafi’s son and a top Libyan leader, including criticisms that Mrs. Clinton had developed tunnel vision and led the U.S. into an unnecessary war without adequately weighing the intelligence community’s concerns.

“You should see these internal State Department reports that are produced in the State Department that go out to the Congress. They’re just full of stupid, stupid facts,” an American intermediary specifically dispatched by the Joint Chiefs of Staff told the Gadhafi regime in July 2011, saying the State Department was controlling what intelligence would be reported to U.S. officials.

At the time, the Gadhafi regime was fighting a civil war that grew out of the Arab Spring, battling Islamist-backed rebels who wanted to dethrone the longtime dictator. Mrs. Clinton argued that Gadhafi might engage in genocide and create a humanitarian crisis and ultimately persuaded President Obama, NATO allies and the United Nations to authorize military intervention.



Losing control: Col. Moammar Gadhafi ruled Libya with an iron fist, but ...more >

Gadhafi’s son and heir apparent, Seif Gadhafi, told American officials in the secret conversations that he was worried Mrs. Clinton was using false pretenses to justify unseating his father and insisted that the regime had no intention of harming a mass of civilians. He compared Mrs. Clinton’s campaign for war to that of the George W. Bush administration’s now debunked weapons of mass destruction accusations, which were used to lobby Congress to invade Iraq, the tapes show.

SEE ALSO: Listen to the tapes: Intel undercuts Hillary Clinton’s primary argument for Libya military action

“It was like the WMDs in Iraq. It was based on a false report,” Gadhafi said in a May 2011 phone call to Rep. Dennis J. Kucinich, an Ohio Democrat serving at the time. “Libyan airplanes bombing demonstrators, Libyan airplanes bombing districts in Tripoli, Libyan army killed thousands, etc., etc., and now the whole world found there is no single evidence that such things happened in Libya.”

Seif Gadhafi also warned that many of the U.S.-supported armed rebels were “not freedom fighters” but rather jihadists whom he described as “gangsters and terrorists.”

“And now you have NATO supporting them with ships, with airplanes, helicopters, arms, training, communication,” he said in one recorded conversation with U.S. officials. “We ask the American government send a fact-finding mission to Libya. I want you to see everything with your own eyes.”

The surreptitiously taped conversations reveal an extraordinary departure from traditional policy, in which the U.S. government speaks to foreign governments with one voice coordinated by the State Department.

Instead, the tapes show that the Pentagon’s senior uniformed leadership and a congressman from Mrs. Clinton’s own party conveyed sentiments to the Libyan regime that undercut or conflicted with the secretary of state’s own message at the time.

“If this story is true, it would be highly unusual for the Pentagon to conduct a separate set of diplomatic negotiations, given the way we operated when I was secretary of state,” James A. Baker III, who served under President George H.W. Bush, told The Times. “In our administration, the president made sure that we all sang from the same hymnal.”

Mr. Kucinich, who challenged Mrs. Clinton and Barack Obama for the 2008 Democratic presidential nomination, acknowledged that he undertook his own conversations with the Gadhafi regime. He said he feared Mrs. Clinton was using emotion to sell a war against Libya that wasn’t warranted, and he wanted to get all the information he could to share with his congressional colleagues.

“I had facts that indicated America was headed once again into an intervention that was going to be disastrous,” Mr. Kucinich told The Times. “What was being said at the State Department — if you look at the charge at the time — it wasn’t so much about what happened as it was about what would happen. So there was a distortion of events that were occurring in Libya to justify an intervention which was essentially wrong and illegal.”

Mr. Kucinich wrote a letter to Mr. Obama and Mrs. Clinton in August explaining his communications in a last-ditch effort to stop the war.

“I have been contacted by an intermediary in Libya who has indicated that President Muammar Gadhafi is willing to negotiate an end to the conflict under conditions which would seem to favor Administration policy,” Mr. Kucinich wrote on Aug. 24.

Neither the White House nor the State Department responded to his letter, he said.

A spokesman for Mrs. Clinton declined to provide any comment about the recordings.

The State Department also declined to answer questions about separate contacts from the Pentagon and Mr. Kucinich with the Gadhafi regime, but said the goal of Mrs. Clinton and Mr. Obama was regime change in Libya.

“U.S. policy during the revolution supported regime change through peaceful means, in line with UNSCR 1973 policy and NATO mission goals,” the State Department said. “We consistently emphasized at the time that Moammar Gadhafi had to step down and leave Libya as an essential component of the transition.”

‘President is not getting accurate information’

Both inside and outside the Obama administration, Mrs. Clinton was among the most vocal early proponents of using U.S. military force to unseat Gadhafi. Joining her in making the case were French President Nicolas Sarkozy, Sen. John McCain, Arizona Republican, and her successor as secretary of state, John F. Kerry.

Mrs. Clinton’s main argument was that Gadhafi was about to engage in a genocide against civilians in Benghazi, where the rebels held their center of power. But defense intelligence officials could not corroborate those concerns and in fact assessed that Gadhafi was unlikely to risk world outrage by inflicting mass casualties, officials told The Times. As a result, Defense Secretary Robert M. Gates and Adm. Mike Mullen, chairman of the Joint Chiefs of Staff, strongly opposed Mrs. Clinton’s recommendation to use force.

If Mrs. Clinton runs for president next year, her style of leadership as it relates to foreign policy will be viewed through the one war that she personally championed as secretary of state. Among the key questions every candidate faces is how they will assess U.S. intelligence and solicit the advice of the military leadership.

Numerous U.S. officials interviewed by The Times confirmed that Mrs. Clinton, and not Mr. Obama, led the charge to use NATO military force to unseat Gadhafi as Libya’s leader and that she repeatedly dismissed the warnings offered by career military and intelligence officials.

In the recovered recordings, a U.S. intelligence liaison working for the Pentagon told a Gadhafi aide that Mr. Obama privately informed members of Congress that Libya “is all Secretary Clinton’s matter” and that the nation’s highest-ranking generals were concerned that the president was being misinformed.

The Pentagon liaison indicated on the tapes that Army Gen. Charles H. Jacoby Jr., a top aide to Adm. Mullen, “does not trust the reports that are coming out of the State Department and CIA, but there’s nothing he can do about it.”

In one conversation to the Libyans, the American intelligence asset said, “I can tell you that the president is not getting accurate information, so at some point someone has to get accurate information to him. I think about a way through former Secretary Gates or maybe to Adm. Mullen to get him information”

The recordings are consistent with what many high-ranking intelligence, military and academic sources told The Times:

Mrs. Clinton was headstrong to enter the Libyan crisis, ignoring the Pentagon’s warnings that no U.S. interests were at stake and regional stability could be threatened. Instead, she relied heavily on the assurances of the Libyan rebels and her own memory of Rwanda, where U.S. inaction may have led to the genocide of at least 500,000 people.

“Neither the intervention decision nor the regime change decision was an intelligence-heavy decision,” said one senior intelligence official directly involved with the administration’s decision-making, who spoke on the condition of anonymity. “People weren’t on the edge of their seats, intelligence wasn’t driving the decision one way or another.”

Instead of relying on the Defense Department or the intelligence community for analysis, officials told The Times, the White House trusted Mrs. Clinton’s charge, which was then supported by Ambassador to the United Nations Susan E. Rice and National Security Council member Samantha Power, as reason enough for war.

“Susan Rice was involved in the Rwanda crisis in 1994, Samantha Power wrote very moving books about what happened in Rwanda, and Hillary Clinton was also in the background of that crisis as well,” said Allen Lynch, a professor of international relations at the University of Virginia. “I think they have all carried this with them as a kind of guilt complex.”

Humanitarian crisis was not imminent

In 2003, Gadhafi agreed to dismantle his weapons of mass destruction and denounce terrorism to re-establish relations with the West. He later made reparations to the families of those who died in the bombing of Pan-Am Flight 103 over Lockerbie, Scotland.

News media frequently described the apparent transformation as Libya “coming in from the cold.”

Still, he ruled Libya with an iron grip, and by February 2011 civil war raged throughout the country. Loyalist forces mobilized tanks and troops toward Benghazi, creating a panicked mass exodus of civilians toward Egypt.

Mrs. Clinton met with Libyan rebel spokesman Mahmoud Jibril in the Paris Westin hotel in mid-March so she could vet the rebel cause to unseat Gadhafi. Forty-five minutes after speaking with Mr. Jibril, Mrs. Clinton was convinced that a military intervention was needed.

“I talked extensively about the dreams of a democratic civil state where all Libyans are equal a political participatory system with no exclusions of any Libyans, even the followers of Gadhafi who did not commit crimes against the Libyan people, and how the international community should protect civilians from a possible genocide like the one [that] took place in Rwanda,” Mr. Jibril told The Times. “I felt by the end of the meeting, I passed the test. Benghazi was saved.”

So on March 17, 2011, the U.S. supported U.N. Security Council Resolution 1973 for military intervention in Libya to help protect its people from Gadhafi’s forthcoming march on Benghazi, where he threatened he would “show no mercy” to resisters.

“In this particular country — Libya — at this particular moment, we were faced with the prospect of violence on a horrific scale,” Mr. Obama declared in an address to the nation on March 28. “We had a unique ability to stop that violence: An international mandate for action, a broad coalition prepared to join us, the support of Arab countries and a plea for help from the Libyan people themselves.”

Yet Human Rights Watch did not see the humanitarian crisis as imminent.

“At that point, we did not see the imminence of massacres that would rise to genocidelike levels,” said Sarah Leah Whitson, executive director of the Middle East and North Africa division for Human Rights Watch. “Gadhafi’s forces killed hundreds of overwhelmingly unarmed protesters. There were threats of Libyan forces approaching Benghazi, but we didn’t feel that rose to the level of imminent genocidelike atrocities.”

Instead, she said, the U.S. government was trying to be at the forefront of the Arab Spring, when many dictator-led countries were turning to democracy.

“I think the dynamic for the U.S. government was: Things are changing fast, Tunisia has fallen, Egypt has fallen, and we’d better be on the front of this, supporting a new government and not being seen as supporting the old government,” Ms. Whitson said.

Clinton blocks Gadhafi outreach

On the day the U.N. resolution was passed, Mrs. Clinton ordered a general within the Pentagon to refuse to take a call with Gadhafi’s son Seif and other high-level members within the regime, to help negotiate a resolution, the secret recordings reveal.

A day later, on March 18, Gadhafi called for a cease-fire, another action the administration dismissed.

Soon, a call was set up between the former U.S. ambassador to Libya, Gene Cretz, and Gadhafi confidant Mohammed Ismael during which Mr. Ismael confirmed that the regime’s highest-ranking generals were under orders not to fire upon protesters.

“I told him we were not targeting civilians and Seif told him that,” Mr. Ismael told The Times in an telephone interview this month, recounting the fateful conversation.

While Mrs. Clinton urged the Pentagon to cease its communications with the Gadhafi regime, the intelligence asset working with the Joint Chiefs remained in contact for months afterward.

“Everything I am getting from the State Department is that they do not care about being part of this. Secretary Clinton does not want to negotiate at all,” the Pentagon intelligence asset told Seif Gadhafi and his adviser on the recordings.

Communication was so torn between the Libyan regime and the State Department that they had no point of contact within the department to even communicate whether they were willing to accept the U.N.’s mandates, former Libyan officials said.

Mrs. Clinton eventually named Mr. Cretz as the official U.S. point of contact for the Gadhafi regime. Mr. Cretz, the former ambassador to Libya, was removed from the country in 2010 amid Libyan anger over derogatory comments he made regarding Gadhafi released by Wikileaks. As a result, Mr. Cretz was not trusted or liked by the family.

Shutting the Gadhafis out of the conversation allowed Mrs. Clinton to pursue a solitary point of view, said a senior Pentagon official directly involved with the intervention.

“The decision to invade [Libya] had already been made, so everything coming out of the State Department at that time was to reinforce that decision,” the official explained, speaking only on the condition of anonymity for fear of retribution.

As a result, the Pentagon went its own way and established communications with Seif Gadhafi through one of his friends, a U.S. businessman, who acted as an intermediary. The goal was to identify a clear path and strategy forward in Libya — something that wasn’t articulated by the White House or State Department at the time, officials said.

“Our big thing was: ‘What’s a good way out of this, what’s a bridge to post-Gadhafi conflict once the military stops and the civilians take over, what’s it going to look like?’” said a senior military official involved in the planning, who requested anonymity. “We had a hard time coming up with that because once again nobody knew what the lay of the clans and stuff was going to be.

“The impression we got from both the businessman and from Seif was that the situation is bad, but this [NATO intervention] is even worse,” the official said, confirming the sentiments expressed on the audio recordings. “All of these things don’t have to happen this way, and it will be better for Libya in the long run both economically and politically if they didn’t.”

Pentagon looks for a way out

The Pentagon wasn’t alone in questioning the intervention.

The week the U.N. resolution authorizing military force was passed, Sen. Jim Webb, Virginia Democrat, expressed his own concerns.

“We have a military operation that’s been put to play, but we do not have a clear diplomatic policy or clear statement of foreign policy. We know we don’t like the Gadhafi regime, but we do not have a picture of who the opposition movement really is. We got a vote from the Security Council but we had five key abstentions in that vote.”

Five of the 15 countries on the U.N. Security Council abstained from voting on the decision in Libya because they had concerns that the NATO intervention would make things worse. Mrs. Clinton worked to avoid having them exercise their veto by personally calling representatives from Security Council member states.

Germany and Brazil published statements on March 18, 2011, explaining their reasons for abstention.

“We weighed the risks of a military operation as a whole, not just for Libya but, of course, also with respect to the consequences for the entire region and that is why we abstained,” Germany said.

Brazil wrote, “We are not convinced that the use of force as contemplated in the present resolution will lead to the realization of our most important objective — the immediate end of violence and the protection of civilians.

We are also concerned that such measures may have the unintended effect of exacerbating tensions on the ground and causing more harm than good to the very same civilians we are committed to protecting.”

Sergey Ivanovich Kislyak, Russia’s ambassador to the U.S., told The Times that history has proved those concerns correct.

“The U.N. Security Council resolution on Libya was meant to create a no-fly zone to prevent bombing of civilians,” said Mr. Kislyak. “NATO countries that participated in this intervention were supposed to patrol the area. However, in a short amount of time the NATO flights — initially meant to stop violence on the ground — went far beyond the scope of the Security Council-mandated task and created even more violence in Libya.”

On March 19, the U.S. military, supported by France and Britain, fired off more than 110 Tomahawk missiles, hitting about 20 Libyan air and missile defense targets. Within weeks, a NATO airstrike killed one of Gaddafi’s sons and three grandsons at their the family’s Tripoli compound, sparking debate about whether the colonel and his family were legitimate targets under the U.N.resolution.

Mr. Gates, the defense secretary, said the compound was targeted because it included command-and-control facilities.

Even after the conflict began, U.S. military leaders kept looking for a way out and a way to avoid the power vacuum that would be left in the region if Gadhafi fell.

As the intelligence asset working with the Joint Chiefs kept his contacts going, one U.S. general made an attempt to negotiate directly with his Libyan military counterparts, according to interviews conducted by The Times with officials directly familiar with the overture.

Army Gen. Carter Ham, the head of the U.S. African Command, sought to set up a 72-hour truce with the regime, according to an intermediary called in to help.

Retired Navy Rear Adm. Charles Kubic, who was acting as a business consultant in Libya at the time, said he was approached by senior Libyan military leaders to propose the truce. He took the plan to Lt. Col. Brian Linvill, the U.S. AFRICOM point of contact for Libya. Col. Linvill passed the proposal to Gen. Ham, who agreed to participate.

“The Libyans would stop all combat operations and withdraw all military forces to the outskirts of the cities and assume a defensive posture. Then to insure the credibility with the international community, the Libyans would accept recipients from the African Union to make sure the truce was honored,” Mr. Kubic said, describing the offers.

“[Gadhafi] came back and said he was willing to step down and permit a transition government, but he had two conditions,” Mr. Kubic said. “First was to insure there was a military force left over after he left Libya capable to go after al Qaeda. Secondly, he wanted to have the sanctions against him and his family and those loyal to him lifted and free passage. At that point in time, everybody thought that was reasonable.”

But not the State Department.

Gen. Ham was ordered to stand down two days after the negotiation began, Mr. Kubic said. The orders were given at the behest of the State Department, according to those familiar with the plan in the Pentagon. Gen. Ham declined to comment when questioned by The Times.

“If their goal was to get Gadhafi out of power, then why not give a 72-hour truce a try?” Mr. Kubic asked. “It wasn’t enough to get him out of power; they wanted him dead.”

Libyan officials were willing to negotiate a departure from power but felt the continued NATO bombings were forcing the regime into combat to defend itself, the recordings indicated.

“If they put us in a corner, we have no choice but to fight until the end,” Mr. Ismael said on one of the recordings. “What more can they do? Bomb us with a nuclear bomb? They have done everything.”

Under immense foreign firepower, the Gadhafi regime’s grip on Libya began to slip in early April and the rebels’ resolve was strengthened. Gadhafi pleaded with the U.S. to stop the NATO airstrikes.

Regime change real agenda

Indeed, the U.S. position in Libya had changed. First, it was presented to the public as way to stop an impending humanitarian crisis but evolved into expelling the Gadhafis.

CIA Director Leon E. Panetta says in his book “Worthy Fights” that the goal of the Libyan conflict was for regime change. Mr. Panetta wrote that at the end of his first week as secretary of defense in July 2011, he visited Iraq and Afghanistan “for both substance and symbolism.”

“In Afghanistan I misstated our position on how fast we’d be bringing troops home, and I said what everyone in Washington knew, but we couldn’t officially acknowledge: That our goal in Libya was regime change.”

But that wasn’t the official war cry.

Instead: “It was ‘We’re worried a humanitarian crisis might occur,’” said a senior military official, reflecting on the conflict. “Once you’ve got everybody nodding up and down on that, watch out because you can justify almost anything under the auspices of working to prevent a humanitarian crisis. Gadhafi had enough craziness about him, the rest of the world nodded on.”

But they might not be so quick to approve again, officials say.

“It may be impossible to get the same kind of resolution in similar circumstances, and we already saw that in Syria where the Russians were very suspicious when Western powers went to the U.N.,” said Richard Northern, who served as the British ambassador to Libya during part of the conflict. “Anything the Western powers did in the Middle East is now viewed by the Russians with suspicion, and it will probably reduce the level of authority they’re willing to give in connection to humanitarian crises.”

Mr. Kucinich, who took several steps to end the war in Libya, said he is sickened about what transpired.

He sponsored a June 3 resolution in the House of Representatives to end the Libyan war, but Republican support for the bill was diluted after Speaker John A. Boehner, Ohio Republican, proposed a softer alternative resolution demanding that the president justify his case for war within 14 days.

“There was a distortion of events that were occurring in Libya to justify an intervention which was essentially wrong and illegal because [the administration] gained the support of the U.N. Security Council through misrepresentation,” said Mr. Kucinich. “The die was cast there for the overthrow of the Gadhafi government. The die was cast. They weren’t looking for any information.

“What’s interesting about all this is, if you listen to Seif Gaddafi’s account, even as they were being bombed they still trusted America, which really says a lot,” said Mr. Kucinich. “It says a lot about how people who are being bombed through the covert involvement or backdoor involvement of the U.S. will still trust the U.S. It’s heart-breaking, really. It really breaks your heart when you see trust that is so cynically manipulated.”

In August, Gadhafi’s compound in Tripoli was overrun, signaling the end of his 42-year reign and forcing him into hiding. Two months later, Gadhafi, 69, was killed in his hometown of Sirte. His son Seif was captured by the Zintan tribe and remains in solitary confinement in a Zintan prison cell.

Since Gadhafi was removed from power, Libya has been in a constant state of chaos, with factional infighting and no uniting leader. On Tuesday, an attack on a luxury hotel in Tripoli killed nine people, including one American. A group calling itself the Islamic State-Tripoli Province took responsibility for the attack, indicating a growing presence of anti-American terrorist groups within the country.

Listen To Secret Tape here

Read more: http://www.washingtontimes.com/news/2015/jan/28/hillary-clinton-undercut-on-libya-war-by-pentagon-/?page=7#ixzz3QbTwNuNF

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Sunday, February 1, 2015

Benghazi Committee Chair Trey Gowdy: White House Witnesses Will Come Testify “Whether They Want to Or Not” (Video)

Posted by Jim Hoft on Tuesday, January 27, 2015, 10:43 AM

benghazi terrorists

Benghazi Select Committee Chairman Trey Gowdy told FOX News today that White House witnesses including National Security Advisor Susan Rice and Ben Rhodes, Deputy National Security Advisor, will come testify before the committee whether they want to or not.

“I would suspect that some, and I won’t say who, it would not be fair to Mr. Cummings, I would suspect some will come voluntarily but they’re coming whether it’s voluntarily or not. So, in urge to their benefit I would urge them to come voluntarily.”

Via America’s Newsroom:

Friday, January 30, 2015

1/30/2015 -- Yellowstone Geologist says Eruption in 2 weeks? Silence for...

MSM: Vaccinate or Go To Jail

ADMIRALS, GENERALS: PENTAGON TAPES INDICT HILLARY

New revelations back damning conclusion of Benghazi commission

Published: 1 day ago

image: http://www.wnd.com/files/2012/01/Jerome-R.-Corsi_avatar-96x96.jpg

author-image JEROME R. CORSI About | Email | Archive

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obamahillary

Hillary Clinton and President Obama discuss the Libya crisis at White House press conference in 2012

NEW YORK – Recordings of top Pentagon officials in 2011 strongly criticizing Hillary Clinton for leading a State Department “march to war” against Libyan dictator Muammar Gadhafi in 2011 and for working with the Muslim Brotherhood confirm the conclusions of the Citizens’ Commission on Benghazi, according to members who spoke to WND.

CCB members said the recordings revealed by the Washington Times provide additional evidence to support the group’s interim report concluding the Obama administration “changed sides” in Libya, rejecting an effort by Gadhafi to abdicate and choosing instead to arm al-Qaida-affiliated militia seeking to forcibly oust the dictator.

Last week, WND reported retired Adm. James Lyons’ conclusion the Obama administration could have ousted Gadhafi peacefully by accepting a deal brokered in March 2011 by retired Rear Adm. Chuck Kubic with AFRICOM in Germany.

“The release of the Pentagon secret tapes by the Washington Times today validates the CCB interim report that the Libyan war was totally unnecessary, since it now has been validated that Gadhafi was willing to abdicate and that he had no intention of causing a humanitarian crisis, as promoted by Hillary’s State Department,” said Lyons, a former four-star admiral who served as the commander in chief of the U.S. Pacific and a founding member of the CCB.

The CCB – comprised of 17 retired admirals and generals; former intelligence agents; active anti-terrorist experts; media specialists; and former congressmen – has been conducting its own investigation and working behind the scenes for the past year-and-a-half to ensure Congress uncovers the truth of what happened in Benghazi and holds people accountable.

“It is long past time that the Obama administration and especially his then-Secretary of State Hillary Clinton come clean about why they were so determined to turn on Gadhafi – our ally in the war against al-Qaida – and instead chose to arm and support al-Qaida militias fighting to overthrow him,” said Clare Lopez, a former career operations officer with the CIA and currently vice president for research at the Washington-based Center for Security Policy.

Lopez said it’s “critical to note that Gadhafi was actively engaged with Department of Defense officials to arrange discussions about his possible abdication and exile when that promising development was squashed by the Obama White House.”

“The Citizens’ Commission on Benghazi has been asking ‘Why?’ for well over a year now,” she said. “It is time the American people and the families of those who fought and gave their lives at Benghazi in September 2012 were told why those brave Americans had to die at all, much less die alone with no effort made to save them.”

Retired Army Maj. Gen. Paul E. Vallely, another CCB founding member, told WND in an email that the Washington Times disclosure puts additional pressure on Rep. Trey Gowdy, R-S.C., to subpoena Clinton and other key Obama administration officials to testify soon in public before the House Select Committee on Benghazi.

“Delays by Gowdy are unnecessary at this time,” Vallely insisted. “Gowdy can press forward now as he does have sufficient intelligence and documents to call all witnesses and issue subpoenas as necessary.”

“Additional delays will only give the obstructionists in the Obama White House, the State Department and the Democrats in Congress time to thwart the efforts of the select committee,” Vallely said. “Gowdy needs to call immediately former Secretary of State Hillary Clinton, former Obama administration CIA Director General David Petraeus and former director of both the CIA and the Department of Defense Leon Panetta, as well as General Dempsey, the current chairman of the Joint Chiefs of Staff.”

Retired Air Force Gen. Thomas McInerney, also a founding member of the CCB, was equally disturbed over the content of the Pentagon recordings revealed by the Washington Times.

“It becomes obvious these Pentagon tapes reveal a starting point by the Obama administration to start switching sides by taking down Gadhafi when all informed analysts knew that Benghazi was the incubator for radical Islam in sending suicide bombers to Iraq to kill American troops,” McInerney said.

“Why the administration wanted to do this is bewildering, but the evidence continues to grow,” McInerney added, citing as evidence President Obama’s enthusiastic support for former President Egyptian President Mohamed Morsi and the Muslim Brotherhood in his country, as well as the Obama administration determination to exchange five Muslim “high value targets” from Guantanamo for U.S. Army soldier Bowe Bergdahl, who was held captive by Taliban-affiliated radicals in Afghanistan after he allegedly deserted his unit.

The disclosure of the Pentagon recordings also prompted CCB members to comment on the influence of the Muslim Brotherhood on the Obama administration.

“The war in Libya was a manufactured war produced in part by the influence the Muslim Brotherhood exerted on Secretary of State Hillary Clinton, with the Muslim Brotherhood penetrating her office through the influence of Huma Abedin, Clinton’s longtime deputy chief of staff, who transferred to the State Department to serve as Clinton’s aide,” Lopez added.

WND has reported extensively Abedin’s family origins in the Muslim Brotherhood and her work for a dozen years as an assistant editor for the Journal of Muslim Minority Affairs for the Institute for Muslim Minority Affairs. The organization was founded by her late father and directed by her mother with the full backing of the Muslim World League, an Islamic organization in the Saudi holy city of Mecca founded by Muslim Brotherhood leaders.

“Remember that Huma Abedin’s family’s Saudi ‘godfather’ is Abdullah Omar Nasseef, the founder of Rabita Trust, an al-Qaida funding institution that was shut down after 9/11. These were the connections advising our secretary of state it’s called an influence operation,” Lopez said.

Lopez said that also during that time, among the closest advisers to John Brennan, now head of the CIA, and Dennis McDonough, currently White House chief of staff, when they were on the National Security Council was the son of the Sudanese grand mufti, Imam Mohamed Magid, the president of the Muslim Brotherhood-affiliated Islamic Society of North America, ISNA.

ISNA was listed by the Department of Justice as an unindicted co-conspirator in the 2008 Holy Land Foundation trial, which convicted the organization and its leaders of funding the terrorist organization Hamas, Lopez noted.

Magid, imam at All Dulles Area Muslim Society, near Washington, D.C., is a member of the board of advisers to the Department of Homeland Security’s Countering Violent Extremism working group.

Read more at http://www.wnd.com/2015/01/admirals-generals-pentagon-tapes-indict-hillary/#8DB0SfyUGPhjTcUF.99

Thursday, January 29, 2015

Measles Police State: Parents who do not vaccinate their children should go to jail


Mac Slavo
Activist Post
Never mind the right to life, liberty and the pursuit of happiness and other basic freedoms that uphold parents’ rights to make decisions about the health care their children receive.
Never mind the evidence that vaccines aren’t as effective as their makers have promised.
Shutter to think, according to the Office of Medical and Scientific Justice, “the theory of ‘herd immunity’ is failing or was flawed to begin with” while a 2014 Council on Foreign Relations report found:
“the most highly vaccinated populations are also those with the greatest number of outbreaks for those same infectious diseases. This was especially the case for measles, mumps, rubella, polio and pertussis outbreaks,” with the U.S. Canada and rest of the Western world leading the list.
Never mind all that.
For many, the measles outbreak at Disneyland is the proof that this matter should no longer be a choice.
Already, an unvaccinated Pasadena woman has been forcibly quarantined after her sister contracted measles.
But it is going further.
USA Today columnist Alex Berezow boldly proclaimed:
Parents who do not vaccinate their children should go to jail.
Anti-vaxxers often claim the right not to put “poison” in their children’s bodies.
That is ludicrous. A mountain of data has demonstrated that vaccines are safe and effective. Insisting otherwise is akin to believing that the moon landing was faked.
Tell that to the parents of Keira Driscoll, a five year old who died from very strain of the flu that she was vaccinated against just three days after receiving an immunization.
Or the 15,000 families that have had little other recourse than to file claims in the National Vaccine Injury Compensation Program after serious injury or death to their child since the program was created in 1988.
The benefits of vaccination have been systematically oversold for one obvious reason – to drive sales with public health mandates and a huge booster of fear – for the profit of Big Pharma.
And this push has not been harmless, it has put many people at risk and devastated families – all because margins of known risk from the vaccines have been accepted as a minor casualty in the effort for the “greater good.”
Berezow argues:
Measles is perhaps the most infectious human disease. Virus particles can remain in the air for up to two hours after an infected person leaves. And measles is not a minor infection. The World Health Organization (WHO) reports that before widespread vaccination began in 1980, 2.6 million people a year died from measles. About 400 people a day still do.
Put simply, no person has the right to threaten the safety of his community. Like drunken drivers, the unvaccinated pose an imminent danger to others. They pose a lethal threat to the most vulnerable: the immunocompromised, such as HIV or cancer patients, and infants who have yet to receive their vaccines.
Anti-vaccine parents are turning their children into little walking time bombs. They ought to be charged for endangering their children and others.
So, there you have it: people who create walking time bombs are terrorists; terrorists should be arrested; parents who don’t vaccinate should be arrested for weaponizing their children. Great.
However, this propagandist fails to point out, or perhaps even comprehend, that the real reason behind these deaths, though still quite tragic, is compromised immune systems – not the disease itself. The vast majority of these deaths occur in populations who live without basic conditions of clean water, sanitation and sufficient levels of essential vitamins in their diet.
Like the flu, it tends to kill those who already have weakened or underdeveloped defenses against illness.
Measles poses relatively little risk to a healthy child. Pediatrician Dr. Jay Gordon told CBS News:
“This measles outbreak does not pose a great risk to a healthy child,” said Dr. Gordon. “And quite frankly I don’t think it poses any risk to a healthy child.”
“Not meningitis, not the plague, not Ebola, they’d get measles. Measles is almost an always a benign childhood illness."
Mortality from Childhood Diseases Was Declining Before the Vaccine Arrived
Overall, studies have shown that rising standards of living have done the most to decrease mortality from infectious disease – not vaccines.
The following chart shows that while the measles vaccine, first introduced in 1963, dramatically decreased the number of measles cases, the number of deaths from measles was already in a downward spiral, thanks to general advances in reducing childhood mortality, in part due to social focus on improving nutrition and hygiene.
Deaths from measles declined from around 10 per 100,000 people in 1912 to around 0.25 per 100,000 in the 1960s. While the introduction of the vaccine did reduce the deaths to near zero, the trend was headed there anyway. measlesmortalityusa1971-75_1
Click to enlarge.

Prior to vaccinations, the vast majority of children who contracted measles in the United States caught the disease, endured it, built up their own bodily defenses, and recovered, often after spreading it to other children who also endured it much in the way children spread chickenpox to one another, often intentionally.
Today there are vaccines for these diseases and more, with plans to roll out vaccines for every conceivable disease under the sun or in the known galaxy. Many parents, doctors and advocates have argued there are now simply too many vaccinations on the schedule for most children to handle, increasing the risk of side effects. Some 30 rounds of vaccines (plus an annual flu shot) are recommended by the CDC in a child’s first six years of life.
Side Effects of Vaccines Outweigh the Dangers of the Disease?
But as the number of cases as well as deaths shrunk, the admitted risk of side effects from the vaccines themselves have overshadowed the risk of the disease.
Hence, many parents have opted out of them, based on a mix of supporting data, precautionary apprehension and, of course, word-of-mouth rumors.
After all, it was the MMR shot – the vaccination for measles mumps and rubella that started the whole “anti-vax” affair – prompting significant numbers of parents to opt out of vaccines for their children en masse, and inadvertently triggering panic in the powers-that-be.
Undoubtedly the Disneyland measles outbreak is being used by the media not only to demonize parents who choose not to vaccinate, but to shame and intimidate them as well.
The media will no doubt point out the many well meaning parents who believed the “rumors” about the MMR vaccine jab being linked with autism – stirred up by the research of Dr. Wakefield, who was accused of fraud and stripped of his medical license.
But the media will probably NOT be pointing out the revelations of the CDC whistleblower who just admitted that the massive study conducted by the CDC to especially to counter the alleged link between MMR and autism was itself fraudulent, and fudged the data to hide increases in autism risk tied to certain statistical populations. Lawsuits have since been filed.
Few have heard the leaked audio of the same CDC whistleblower discussing research linking “tics” linked to mercury in vaccines, noting that he would personally NEVER give his own pregnant wife a flu shot (which contains mercury as the preservative thimerosal). Doctors, however, recommend that pregnant women receive the shot.
But for the masses, those are just background issues most will never even be aware of.
The drumbeat is mounting for a new push to legitimize vaccinations, and recoup the profits that have been lost to falling vaccination rates and, as usual, by scaring up an issue.
God help us. Society is made up of sheep.
You can read more from Mac Slavo at his site SHTFplan.com, where this first appeared.









Measles Police State: ''Parents who do not vaccinate their children should go to jail''
Activist
Thu, 29 Jan 2015 16:34:00 GMT

Birds of a Feather: John McCain Defends Henry Kissinger

 

Brandon Turbeville
Activist Post
It has been said that birds of a feather flock together, and proof of that statement can be seen in the fact that terrorist sympathizer John McCain was recently forced to act as Knight in Shining Armor for famed mass murderer Henry Kissinger as the latter was attempting to give yet another speech to the Senate Armed Services Committee.
Kissinger’s arrival, as well as the beginning of his speech, was interrupted by protesters from Code Pink, who attempted to list off the crimes of Henry Kissinger but were unable to continue their presentation for the requisite number of days it would take to do so due to the fact that Capitol Hill police were called in to remove them.
McCain, always a friend to those who have committed or are doing their best to commit atrocities on a mass scale, erupted in typical angry fashion screaming at protesters, “You know, you're going to have to shut up, or I'm going to have you arrested.” As the protesters were being removed, McCain also screamed, “Get out of here you low-life scum.”
McCain went on to apologize to Kissinger by stating that “Dr. Kissinger, I hope on behalf of all of the members of this committee on both sides of the aisle -- in fact, from all of my colleagues, I'd like to apologize for allowing such disgraceful behavior towards a man who served his country with the greatest distinction. I apologize profusely.”
Many Americans, particularly Vietnam veterans, however, may indeed remember “such disgraceful behavior towards a man who served his country with the greatest distinction” taking place in the Capitol on a number of occasions.

Indeed, the performance of John McCain standing in front of Congress and arguing against any further investigation or revelation of whether or not American POWs were still being held in Vietnam, would certainly count as one such instance.
One other such instance might be his incessant grandstanding in support of al-Qaeda and ISIS, known to the mainstream media as “moderate rebels,” freedom fighters, and the like.
Yet, while McCain’s support of the Vietnam war, Iraq War, Syrian War, Libyan war, and virtually every war that was ever waged and those that ever will be waged upon the face of the earth, has resulted in the death of millions of people, McCain found himself in the presence of one of the true kings of killing in Henry Kissinger.

Indeed, Kissinger is one of the true living figures whose feet most psychopathic killers the world over still long to kneel at.
Kissinger’s direction of the Chilean coup, Vietnam war, Cambodian and Laotian tragedies, and his famous National Security Study Memorandum 200: Implications of Worldwide Population Growth for U.S. Security and Overseas Interests (NSSM200) has earned him a special place amongst the world’s most effective mass murders, although admittedly not the most widely known.
It is thus not surprising that McCain would come to the aid of Kissinger so readily. In fact, it is not surprising that, after all these years and all these crimes against humanity, that Kissinger would be addressing such an important Congressional committee. Nor is it surprising that this committee boasts yet another criminal, terrorist supporter, insidious color revolution operative, and traitor like John McCain.
The only surprising aspect of the whole affair was that the protesters were allowed to stay for as long as they did.
Or was the most surprising aspect that there were protesters to begin with?
Recently from Brandon Turbeville:

Brandon Turbeville is an author out of Florence, South Carolina. He has a Bachelor's Degree from Francis Marion University and is the author of six books, Codex Alimentarius -- The End of Health Freedom, 7 Real Conspiracies, Five Sense Solutions and Dispatches From a Dissident, volume 1 and volume 2, and The Road to Damascus: The Anglo-American Assault on Syria. Turbeville has published over 300 articles dealing on a wide variety of subjects including health, economics, government corruption, and civil liberties. Brandon Turbeville's podcast Truth on The Tracks can be found every Monday night 9 pm EST at UCYTV.  He is available for radio and TV interviews. Please contact activistpost (at) gmail.com.

Birds of a Feather: John McCain Defends Henry Kissinger
Admin
Thu, 29 Jan 2015 23:27:00 GMT

The FBI’s plan to collect everyone’s DNA just got a huge boost from congress

Submitted by sosadmin on Tue, 01/27/2015 - 17:46

In 2011, 1 in 25 Americans was arrested. In a few years, if the FBI has its way, the federal government will possess the DNA of all of those people and more. Under the radar of most lawmakers and journalists, the Bureau—with private industry and congress’ help—is pushing the most massive expansion of biometric state surveillance since the invention of the fingerprint.

Late last year, the FBI cut the ribbon on its one billion dollar biometrics database, called Next Generation Identification. Since NGI’s official launch, state and local law enforcement officials have been encouraged to submit face prints, fingerprints, retina scans, photos of tattoos and scars, and DNA collected from people nationwide to the FBI’s central database. Those state and local officials can also search against the FBI’s biometrics store, if they want to identify someone. With NGI in full operation, the scary future of Minority Report infamy takes a giant leap forward into the world of non-fiction. 

The FBI has big goals when it comes to biometric databases, but they can’t achieve them without the active buy-in and assistance of state and local police. That’s part of the reason why Department of Justice and Homeland Security grant programs have paid for state and local police nationwide to purchase biometric capturing and processing technologies. Ask your local police department about their electronic fingerprint readers, for example, and you’re likely to hear that they were purchased with federal funds. Those devices make it easy for police and sheriffs nationwide to submit fingerprints to the FBI—rapidly, from the field, and with very little effort on behalf of departments.

The same is about to be true with DNA, thanks to funds congress has made available specifically for state and local law enforcement to purchase rapid DNA processing machines. The 2015 omnibus budget includes this provision: “$117,000,000 is for a DNA analysis and capacity enhancement program and for other local, State, and Federal forensic activities.” These funds will presumably help the FBI achieve goals it laid out in August 2014, as relayed here by Nextgov—one of the few news outlets to cover the FBI’s DNA collection plans:

Various FBI divisions "are collaborating to develop and implement foundational efforts to streamline and automate law enforcement's DNA collection processes" including at arrest, booking and conviction, according to an Aug. 19 notice about the industry briefing. The ongoing groundwork is expected to facilitate the "integration of Rapid DNA Analysis into the FBI's Combined DNA Index (CODIS) and Next Generation Identification (NGI) systems from the booking environment.”

Current law requires state and local police to send collected DNA to an accredited lab before it is shipped off to the feds. But the FBI wants a “legislative tweak” to enable police to skip that step, and send DNA from arrestees directly to the federal CODIS database. If the feds succeed in changing the law, we’re in trouble: corporations and congress are already laying the groundwork for the logistic implementation of a nationwide DNA dragnet.

A cursory internet search reveals that General Electric, one of the manufacturers of rapid DNA testing machines, is already working with police to assist them in getting federal grants to purchase their technology. GE Healthcare is “sponsoring” free grant writing and application processing for police departments that want federal funds to buy its DNAscan™ Rapid DNA Analysis System. “Free to any law enforcement agency, this program includes: grant research, application assistance, narrative reviews, and grant alerts,” the GE websiteadvertises. “The consultative nature of our service will result in grant applications intelligently tailored to grant program requirements; greatly improving the chance your department will ultimately be funded.”

The FBI and General Electric are likely very pleased by congress’ decision to allocate $117 million for DNA processing technologies grants for state and local cops. But should we be?

A terrible Supreme Court ruling in Maryland v King says to the contrary: we should be very, very alarmed. As Justice Scalia noted in his dissent, “Make no mistake about it: because of today’s decision, your DNA can be taken and entered into a national database if you are ever arrested, rightly or wrongly, and for whatever reason.”

That grim prognosis has now received a massive stimulus in the form of millions of dollars in grant funds for police to purchase the technology that will make such a program not just viable, but inevitable. Unless we stop it.

If you’re concerned about your state and local police obtaining federal funds to purchase a rapid DNA testing machine, and thereby facilitating FBI DNA collection from tens of millions of people nationwide, get in touch with your city or town government. Tell your elected officials you don’t want police using these machines to obtain DNA from people convicted of no crime. Tell them you know who will be most severely impacted by this incoming surveillance dragnet: black and Latino people, undocumented immigrants, the poor, and political dissidents.

It’s not enough just to talk about these problems. We must act—and the local level is where we as ordinary people have the most power to have a real impact.Demand that your local lawmakers provide genuine oversight of police technology acquisitions when those tools will be used to enable things like a nationwide DNA database. To our local authorities the money might seem “free” because it comes from federal grants, but the damage done to civil liberties and personal freedoms is dangerously costly. Don’t wait until the police already have the grant in hand to raise concerns about this issue. By then it may be too late.

IRAQ WAR REDUX: HILLARY CLINTON MANUFACTURED “STUPID FACTS” THAT LED TO THE INVASION OF LIBYA

Former Sec. of State responsible for the death of 30,000 Libyans

by KURT NIMMO | INFOWARS.COM | JANUARY 29, 2015


Hillary Clinton, as Secretary of State, created false pretenses for the invasion of Libya in much the same way neocons used fabricated intelligence as an excuse to launch a war against Iraq during the Bush era. Listen here:
http://player.ooyala.com/iframe.html#pbid=7d6243b6b5f74a6fb09a179d33842db2&ec=o1cXgxczopsoTCxZ0i-MF3G6knBYf4eK&docUrl=http%3A%2F%2Fwww.infowars.com%2Firaq-war-redux-hillary-clinton-manufactured-stupid-facts-that-led-to-the-invasion-of-libya%2F
Libya in much the same way neocons used fabricated intelligence as an excuse to launch a war against Iraq during the Bush era.

On Wednesday, the Washington Times reported the discovery of tapes recovered from Libya revealing Clinton had “developed tunnel vision and led the U.S. into an unnecessary war without adequately weighing the intelligence community’s concerns.”

An intermediary dispatched by the Joint Chiefs of Staff told Col. Moammar Gaddafi’s son Clinton and the State Department had produced “stupid, stupid facts” that were sent to Congress in the lead-up to the NATO invasion of the north African nation.

Clinton argued the Gaddafi regime would engage in genocide and produce a humanitarian crisis in response to an Arab Spring uprising in Libya.

The so-called Arab Spring was aborderless color revolution-esque effort launched by the International Republican Institute, the National Democratic Institute, Freedom House and the National Endowment for Democracy to reformulate the political landscape in the Middle East, beginning in Egypt.

“It was like the WMDs in Iraq. It was based on a false report,” Gadhafi’s son and heir apparent, Seif Gaddafi, said in a May 2011 phone call to then Democrat Rep. Dennis J. Kucinich.

“Libyan airplanes bombing demonstrators, Libyan airplanes bombing districts in Tripoli, Libyan army killed thousands, etc., etc., and now the whole world found there is no single evidence that such things happened in Libya.”

In fact, the humanitarian crisis in Libya developed following the invasion, not before. According to the United Nations, approximately 750,000 refugees were forced to leave the country after the NED and State Department instigated “rebellion” against Gaddafi broke out. At least 30,000 people died during the manufactured war.

The supposed rebels were comprised primarily of al-Qaeda terrorists who were purposely armed and supported by the CIA.

“And now you have NATO supporting them with ships, with airplanes, helicopters, arms, training, communication,” Seif Gaddafi told U.S. officials. “We ask the American government send a fact-finding mission to Libya. I want you to see everything with your own eyes.”

The Libyan war designed by the Clinton State Department and initiated by NATO and the United Nations served the usual clients — the military-industrial complex, the financial class and big oil.

“Wall Street, the Anglo-American oil giants, the US-EU weapons producers would be the unspoken beneficiaries of a US-NATO led military campaign directed against Libya. Libyan oil is a bonanza for the Anglo-American oil giants,” writes Michel Chossudovsky.

“Libya has the largest oil reserves in Africa. The objective of US-NATO interference is strategic: it consists in outright theft, in stealing the nation’s oil wealth under the disguise of a humanitarian intervention. This military operation is intent upon establishing US hegemony in North Africa, a region historically dominated by France and to lesser extent by Italy and Spain.”

Hillary Clinton: Neocon Choice for President

Despite Hillary Clinton’s age, her medical issues and largely glossed over criminal behavior, she will likely become the next president of the United States.

She is the preferred candidate of the neocon faction of the ruling elite and is more “hawkish” than her putative opponents, Jeb Bush or Mitt Romney.

Robert Kagan, an influential neocon, and Max Boot, a senior fellow at the Council on Foreign Relations, believe Clinton “was a principled voice for a strong stand on controversial issues, whether supporting the Afghan surge or the intervention in Libya.”

“It’s easy to imagine Mrs. Clinton’s making room for the neocons in her administration,” Jacob Heilbrunnwrote for The New York Times in July. “No one could charge her with being weak on national security with the likes of Robert Kagan on board.”

Influential Democrats across the board support Clinton’s presidential bid and corporate media polls show Americans support Clinton over her rivals by a wide margin (57% of those polled oppose Bush and 60% are against Romney).

Of course, it is basically irrelevant who occupies the White House come 2016. The financial class and its political operatives in the Democrat and Republican parties will make certain the next president continues the policies attributed to the prior president who, naturally, continued the foreign policy directives of his predecessor.

'Two Percent Inflation' and The Fed's Current Mandate

written by ron paul

wednesday january 28, 2015

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Over the last 100 years the Fed has had many mandates and policy changes in its pursuit of becoming the chief central economic planner for the United States. Not only has it pursued this utopian dream of planning the US economy and financing every boondoggle conceivable in the welfare/warfare state, it has become the manipulator of the premier world reserve currency.

As Fed Chairman Ben Bernanke explained to me, the once profoundly successful world currency – gold – was no longer money. This meant that he believed, and the world has accepted, the fiat dollar as the most important currency of the world, and the US has the privilege and responsibility for managing it. He might even believe, along with his Fed colleagues, both past and present, that the fiat dollar will replace gold for millennia to come. I remain unconvinced.

At its inception the Fed got its marching orders: to become the ultimate lender of last resort to banks and business interests. And to do that it needed an “elastic” currency. The supporters of the new central bank in 1913 were well aware that commodity money did not “stretch” enough to satisfy the politician’s appetite for welfare and war spending. A printing press and computer, along with the removal of the gold standard, would eventually provide the tools for a worldwide fiat currency. We’ve been there since 1971 and the results are not good.

Many modifications of policy mandates occurred between 1913 and 1971, and the Fed continues today in a desperate effort to prevent the total unwinding and collapse of a monetary system built on sand. A storm is brewing and when it hits, it will reveal the fragility of the entire world financial system.

The Fed and its friends in the financial industry are frantically hoping their next mandate or strategy for managing the system will continue to bail them out of each new crisis.

The seeds were sown with the passage of the Federal Reserve Act in December 1913. The lender of last resort would target special beneficiaries with its ability to create unlimited credit. It was granted power to channel credit in a special way. Average citizens, struggling with a mortgage or a small business about to go under, were not the Fed’s concern. Commercial, agricultural, and industrial paper was to be bought when the Fed's friends were in trouble and the economy needed to be propped up. At its inception the Fed was given no permission to buy speculative financial debt or U.S. Treasury debt.

It didn’t take long for Congress to amend the Federal Reserve Act to allow the purchase of US debt to finance World War I and subsequently all the many wars to follow. These changes eventually led to trillions of dollars being used in the current crisis to bail out banks and mortgage companies in over their heads with derivative speculations and worthless mortgage-backed securities.

It took a while to go from a gold standard in 1913 to the unbelievable paper bailouts that occurred during the crash of 2008 and 2009.

In 1979 the dual mandate was proposed by Congress to solve the problem of high inflation and high unemployment, which defied the conventional wisdom of the Phillips curve that supported the idea that inflation could be a trade-off for decreasing unemployment. The stagflation of the 1970s was an eye-opener for all the establishment and government economists. None of them had anticipated the serious financial and banking problems in the 1970s that concluded with very high interest rates.

That’s when the Congress instructed the Fed to follow a “dual mandate” to achieve, through monetary manipulation, a policy of “stable prices” and “maximum employment.” The goal was to have Congress wave a wand and presto the problem would be solved, without the Fed giving up power to create money out of thin air that allows it to guarantee a bailout for its Wall Street friends and the financial markets when needed.

The dual mandate was really a triple mandate. The Fed was also instructed to maintain “moderate long-term interest rates.” “Moderate” was not defined. I now have personally witnessed nominal interest rates as high as 21% and rates below 1%. Real interest rates today are actually below zero.

The dual, or the triple mandate, has only compounded the problems we face today. Temporary relief was achieved in the 1980s and confidence in the dollar was restored after Volcker raised interest rates up to 21%, but structural problems remained.

Nevertheless, the stock market crashed in 1987 and the Fed needed more help. President Reagan’s Executive Order 12631 created the President’s Working Group on Financial Markets, also known as the Plunge Protection Team. This Executive Order gave more power to the Federal Reserve, Treasury, Commodity Futures Trading Commission, and the Securities and Exchange Commission to come to the rescue of Wall Street if market declines got out of hand. Though their friends on Wall Street were bailed out in the 2000 and 2008 panics, this new power obviously did not create a sound economy. Secrecy was of the utmost importance to prevent the public from seeing just how this “mandate” operated and exactly who was benefiting.

Since 2008 real economic growth has not returned. From the viewpoint of the central economic planners, wages aren’t going up fast enough, which is like saying the currency is not being debased rapidly enough. That’s the same explanation they give for prices not rising fast enough as measured by the government-rigged Consumer Price Index. In essence it seems like they believe that making the cost of living go up for average people is a solution to the economic crisis. Rather bizarre!

The obsession now is to get price inflation up to at least a 2% level per year. The assumption is that if the Fed can get prices to rise, the economy will rebound. This too is monetary policy nonsense.

If the result of a congressional mandate placed on the Fed for moderate and stable interest rates results in interest rates ranging from 0% to 21%, then believing the Fed can achieve a healthy economy by getting consumer prices to increase by 2% per year is a pie-in-the-sky dream. Money managers CAN’T do it and if they could it would achieve nothing except compounding the errors that have been driving monetary policy for a hundred years.

A mandate for 2% price inflation is not only a goal for the central planners in the United States but for most central bankers worldwide.

It’s interesting to note that the idea of a 2% inflation rate was conceived 25 years ago in New Zealand to curtail double-digit price inflation. The claim was made that since conditions improved in New Zealand after they lowered their inflation rate to 2% that there was something magical about it. And from this they assumed that anything lower than 2% must be a detriment and the inflation rate must be raised. Of course, the only tool central bankers have to achieve this rate is to print money and hope it flows in the direction of raising the particular prices that the Fed wants to raise.

One problem is that although newly created money by central banks does inflate prices, the central planners can’t control which prices will increase or when it will happen. Instead of consumer prices rising, the price inflation may go into other areas, as determined by millions of individuals making their own choices. Today we can find very high prices for stocks, bonds, educational costs, medical care and food, yet the CPI stays under 2%.

The CPI, though the Fed currently wants it to be even higher, is misreported on the low side. The Fed’s real goal is to make sure there is no opposition to the money printing press they need to run at full speed to keep the financial markets afloat. This is for the purpose of propping up in particular stock prices, debt derivatives, and bonds in order to take care of their friends on Wall Street.

This “mandate” that the Fed follows, unlike others, is of their own creation. No questions are asked by the legislators, who are always in need of monetary inflation to paper over the debt run up by welfare/warfare spending. There will be a day when the obsession with the goal of zero interest rates and 2% price inflation will be laughed at by future economic historians. It will be seen as just as silly as John Law’s inflationary scheme in the 18th century for perpetual wealth for France by creating the Mississippi bubble – which ended in disaster. After a mere two years, 1719 to 1720, of runaway inflation Law was forced to leave France in disgrace. The current scenario will not be precisely the same as with this giant bubble but the consequences will very likely be much greater than that which occurred with the bursting of the Mississippi bubble.

The fiat dollar standard is worldwide and nothing similar to this has ever existed before. The Fed and all the world central banks now endorse the monetary principles that motivated John Law in his goal of a new paradigm for French prosperity. His thesis was simple: first increase paper notes in order to increase the money supply in circulation. This he claimed would revitalize the finances of the French government and the French economy. His theory was no more complicated than that.

This is exactly what the Federal Reserve has been attempting to do for the past six years. It has created $4 trillion of new money, and used it to buy government Treasury bills and $1.7 trillion of worthless home mortgages. Real growth and a high standard of living for a large majority of Americans have not occurred, whereas the Wall Street elite have done quite well. This has resulted in aggravating the persistent class warfare that has been going on for quite some time.

The Fed has failed at following its many mandates, whether legislatively directed or spontaneously decided upon by the Fed itself – like the 2% price inflation rate. But in addition, to compound the mischief caused by distorting the much-needed market rate of interest, the Fed is much more involved than just running the printing presses. It regulates and manages the inflation tax. The Fed was the chief architect of the bailouts in 2008. It facilitates the accumulation of government debt, whether it’s to finance wars or the welfare transfer programs directed at both rich and poor. The Fed provides a backstop for the speculative derivatives dealings of the banks considered too big to fail. Together with the FDIC's insurance for bank accounts, these programs generate a huge moral hazard while the Fed obfuscates monetary and economic reality.

The Federal Reserve reports that it has over 300 PhD’s on its payroll. There are hundreds more in the Federal Reserve’s District Banks and many more associated scholars under contract at many universities. The exact cost to get all this wonderful advice is unknown. The Federal Reserve on its website assures the American public that these economists “represent an exceptional diverse range of interest in specific area of expertise.” Of course this is with the exception that gold is of no interest to them in their hundreds and thousands of papers written for the Fed.

This academic effort by subsidized learned professors ensures that our college graduates are well-indoctrinated in the ways of inflation and economic planning. As a consequence too, essentially all members of Congress have learned these same lessons.

Fed policy is a hodgepodge of monetary mismanagement and economic interference in the marketplace. Sadly, little effort is being made to seriously consider real monetary reform, which is what we need. That will only come after a major currency crisis.

I have quite frequently made the point about the error of central banks assuming that they know exactly what interest rates best serve the economy and at what rate price inflation should be. Currently the obsession with a 2% increase in the CPI per year and a zero rate of interest is rather silly.

In spite of all the mandates, flip-flopping on policy, and irrational regulatory exuberance, there’s an overwhelming fear that is shared by all central bankers, on which they dwell day and night. That is the dreaded possibility of DEFLATION.

A major problem is that of defining the terms commonly used. It’s hard to explain a policy dealing with deflation when Keynesians claim a falling average price level – something hard to measure – is deflation, when the Austrian free-market school describes deflation as a decrease in the money supply.

The hysterical fear of deflation is because deflation is equated with the 1930s Great Depression and all central banks now are doing everything conceivable to prevent that from happening again through massive monetary inflation. Though the money supply is rapidly rising and some prices like oil are falling, we are NOT experiencing deflation.

Under today’s conditions, fighting the deflation phantom only prevents the needed correction and liquidation from decades of an inflationary/mal-investment bubble economy.

It is true that even though there is lots of monetary inflation being generated, much of it is not going where the planners would like it to go. Economic growth is stagnant and lots of bubbles are being formed, like in stocks, student debt, oil drilling, and others. Our economic planners don’t realize it but they are having trouble with centrally controlling individual “human action.”

Real economic growth is being hindered by a rational and justified loss of confidence in planning business expansions. This is a consequence of the chaos caused by the Fed’s encouragement of over-taxation, excessive regulations, and diverting wealth away from domestic investments and instead using it in wealth-consuming and dangerous unnecessary wars overseas. Without the Fed monetizing debt, these excesses would not occur.

Lessons yet to be learned:

1. Increasing money and credit by the Fed is not the same as increasing wealth. It in fact does the opposite.

2. More government spending is not equivalent to increasing wealth.

3. Liquidation of debt and correction in wages, salaries, and consumer prices is not the monster that many fear.

4. Corrections, allowed to run their course, are beneficial and should not be prolonged by bailouts with massive monetary inflation.

5. The people spending their own money is far superior to the government spending it for them.

6. Propping up stock and bond prices, the current Fed goal, is not a road to economic recovery.

7. Though bailouts help the insiders and the elite 1%, they hinder the economic recovery.

8. Production and savings should be the source of capital needed for economic growth.

9. Monetary expansion can never substitute for savings but guarantees mal–investment.

10. Market rates of interest are required to provide for the economic calculation necessary for growth and reversing an economic downturn.

11. Wars provide no solution to a recession/depression. Wars only make a country poorer while war profiteers benefit.

12. Bits of paper with ink on them or computer entries are not money – gold is.

13. Higher consumer prices per se have nothing to do with a healthy economy.

14. Lower consumer prices should be expected in a healthy economy as we experienced with computers, TVs, and cell phones.

All this effort by thousands of planners in the Federal Reserve, Congress, and the bureaucracy to achieve a stable financial system and healthy economic growth has failed.

It must be the case that it has all been misdirected. And just maybe a free market and a limited government philosophy are the answers for sorting it all out without the economic planners setting interest and CPI rate increases.

A simpler solution to achieving a healthy economy would be to concentrate on providing a “SOUND DOLLAR” as the Founders of the country suggested. A gold dollar will always outperform a paper dollar in duration and economic performance while holding government growth in check. This is the only monetary system that protects liberty while enhancing the opportunity for peace and prosperity.


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