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Thursday, 11 December 2014

Minority Congressional staffers walk out in wake of grand jury decisions


© Unknown



Some congressional staffers walked off their jobs Thursday afternoon to show their support for the families of Michael Brown and Eric Garner in the wake of the decision by two grand juries not to indict the police officers responsible for their deaths, according to three staffers who planned to participate in the event.

The planned walkout came after days of protests across the country, including in Washington, D.C., where demonstrators have marched through downtown, blocking roads and bridges on an almost nightly basis since last Wednesday's decision by a grand jury in Staten Island not to indict Officer Daniel Pantaleo in the chokehold death of Garner.


"We're proud to have this moment of solidarity with the families of Michael Brown and Eric Garner and the thousands of peaceful protesters around the country who are telling this country that black lives matter," said one staffer who was helping to plan the event.


The Congressional Asian Pacific American Staff Association and the Congressional Hispanic Staff Association was expected to join black staffers and the Congressional Black Associates in planning the event. A staffer who planned to attend the protest said it was important to show support across racial lines.


"I believe it's important, because what affects one community really affects the entire country," the staffer told CNN. "It's not just one group of minorities that's affected. How one group is treated affects Asians, Hispanics, women. It's important that we show our solidarity and come together and really speak out about the injustices that are being done."


The group will gather in front of the Capitol and plan to take a photo at 345 p.m. U.S. Senate Chaplain Barry Black is expected to pray for the grieving families and to pray for peace.


"We're not trying to cause any type of controversy," one staffer told CNN. "We're just trying to highlight this issue, to show solidarity with people who have been affected."


Chaplain Black has drawn attention before for his topical prayers. Last year during the budget battle that shut down the government for 16 days, he opened each session with a prayer appealing the lawmakers to end the impasse.


"Obviously, there are probably some people who feel that my prayers should not have been as pointed as they were," Black told CNN's Anderson Cooper after the shutdown had ended. "My prayers simply reflect the reality of the environment that I am in."


Black could not be reached immediately reached for comment ahead of the event.


Want something else to read? How about 'Grievous Censorship' By The Guardian: Israel, Gaza And The Termination Of Nafeez Ahmed's Blog


Selling psychopathy: ISIS releases pamphlet justifying child rape, sex slaves


© AFP Photo / Ahmad Al-Rubaye



The Islamic State militant group has released a guide to the capture, punishment and rape of female non-believers. It outlines how to use them as their sex slaves and also justifies child rape.

The guide appears in the form of questions and answers about how to capture and subjugate woman of other beliefs.


The sickening list appears to have been printed on December 3 by Islamic State (IS, formerly ISIS) in-house publishers for their "Research and Fatwa Department".


The document has been translated by the Middle East Media Research Institute, an NGO based in Washington DC.


Researchers from the anti-extremism think tank Quilliam told the that they believed it "can be traced back to some of ISIS's most active propagandists."


It's known the Islamic State has kidnapped more than 2,500 women, and another 4,600 are missing.


In their twisted, medieval interpretation of Islam the document makes crystal clear how these woman are treated, and that such treatment is permissible because the captives are non-Muslims.


The rules then state that it's alright to rape a slave "immediately after taking possession of her" and that it is "permissible to have intercourse with the female slave who hasn't reached puberty if she is fit for intercourse."


In the simplistic document, called 'Questions and Answers on Taking Captives and Slaves', slave woman are referred to as al-Sabi and they can only be taken from 'ahl al-harb', a group of people with whom the IS considers itself at war - in other words, anyone who doesn't follow their extreme interpretation of the Koran.


Among some of the points on the list were: "It is permissible to beat the female slave as a form of darb ta'deeb [disciplinary beating], but it is forbidden to use darb al-takseer [literally, breaking beating], [darb] al-tashaffi [beating for the purpose of achieving gratification], or [darb] al-ta'dheeb [torture beating]. Further, it is forbidden to hit the face."


While another also said "A male or female slave's running away [from their master] is among the gravest of sins..."


"The content, while it is abhorrent and shocking, is not surprising - we know that IS ideologues have justified and legitimated slavery in past publications," Charlie Winter, from the Qulliam Foundation, told the .


The pamphlet emerged at the same time as information about young British female Muslims came to light. These women have used social media to boast about joining Islamic State's terrifying all-female police force, which dole out beatings and manage brothels where thousands of Yazidi women are kept after being sold for just $42.


The Islamic State believes that Yazidis are devil worshipers and are therefore worse than 'people of the book' such as Christians and Jews, who can escape imprisonment by paying a monthly tax. Yazidis, however, are not able to pay their way out of jail.


The Yazids live in the north of Iraq and north east of Syria, who follow the ancient Yazidi religion.


The IS price list for slaves ranks the cost of a woman by age, so while a woman aged 40-50 would sell for just 50,000 dinars or $43, a girl aged 10-20 would be worth 150,000 dinars ($125) and a child under nine would sell for 200,000 dinars ($166).


Want something else to read? How about 'Grievous Censorship' By The Guardian: Israel, Gaza And The Termination Of Nafeez Ahmed's Blog


Kremlin official: West behind surge in religious extremism

Ivanov

© RIA Novosti/Valeriy Melnikov

Chief of Staff of the Presidential Executive Office Sergei Ivanov



The current outburst of religious extremism is a direct consequence of the short-sighted policies of Western nations, the head of Russian Presidential Administration says.

"You all know about the serious processes that are taking place in the Middle East and North Africa, where the ethnic and confessional balance is now being blatantly destroyed," Sergey Ivanov stated on Thursday.


"First of all we must talk about the sharp surge of religious extremism that is largely a consequence of the, diplomatically speaking, shortsighted policy of a number of Western countries," he told the Presidential Council for Interaction with Religious Organizations.


"Everyone sees this very clearly," he noted.


Ivanov added that the Islamic State (IS, formerly ISIS) was the most vivid example of the disastrous results yielded by the West's policies in the region.


The official said various religious minorities in the East - Alawites, Druze, Yazidis and Christians were all in a very vulnerable situation. "Hundreds if not thousands of Christian churches and other temples have been destroyed in Syria and Iraq, and hundreds of thousands of people have had to flee from their traditional dwelling places," Ivanov told the council. He gave examples of members of the Christian community in Mosul who had to hide from IS radicals in Kurdistan, saying that those who remained at home are under constant threat of death. He added that people who follow traditional Islam were also suffering from repression and threats from Islamic State.


In the same speech the Kremlin official said that the ongoing crisis in Ukraine caused many physical attacks on Russian Orthodox churches and priests, on which the Kiev authorities were turning a blind eye.


"And I would like to emphasize that this is happening in the center of educated and civilized Europe," Ivanov added.


"The illegal takeover of power that happened in Ukraine in February this year led to a very serious outburst of radicalism and caused mass violations of law, religious hatred and violence against believers," he noted.


According to Ivanov, such a situation would have been impossible if the opposing parties in Ukraine from the very beginning solved their disagreements through dialogue and without external interference.


"Russia has always supported this approach and it will continue to do so," he added.


In early November, a former general of Russian military intelligence service suggested in a press interview that the leaders of the IS could be under the direct influence of NATO and certain Western states.


"There are some grounds to suspect that American and British special services could support the Islamic extremists in order to target the territorial integrity of the Russian Federation," RIA Novosti quoted Nikolay Pushkaryov as saying.


"The top of these movements could be under the influence of NATO agents," he added.


Want something else to read? How about 'Grievous Censorship' By The Guardian: Israel, Gaza And The Termination Of Nafeez Ahmed's Blog


False-flag terror: Gladio B and the Battle for Eurasia using 'Islamic terrorists'

gladio b

'Operation Gladio B' - the continuation of the old NATO Gladio program - covers a tangled web of covert operatives, billionaire Imams, drug running, prison breaks and terror strikes. Its goal: the destabilization of Central Asia and the Caucasus. In this presentation to Studium Generale in Groningen on November 19, 2014, James Corbett lifts the lid on this operation, its covert operatives, and the secret battle for the Eurasian heartland.

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Transcript:


CENTRAL ASIA AND THE CAUCASUS


Central Asia is a vast expanse of the map whose defining characteristic is its ability to defy characterization. Stretching from the shores of the Caspian Sea in the west to the border of China in the east, and from Iran and Pakistan's doorstep in the south to Russia's in the north, it encompasses everything from the snow-capped slopes of Victory Peak in Kyrgyzstan to the remarkable "door to hell" in Turkmenistan's Karakum Desert to the sprawling grasslands of the Kazakh Steppe. Settled by migrants from the Persian, Turkic, Chinese and Slavic civilizations, its inhabitants speak Kyrgyz, Kazakh, Russian, Tajik, Uzbek and Turkmen and include Muslims, Christians, Jews, Hindus and Buddhists.


The much smaller Caucasus region, a narrow land bridge sandwiched between the Black and Caspian seas, is equally diverse. The region contains over 50 ethnic groups and is home to three local language families and several dozen languages, from the obscure Bohtan Neo-Aramaic tongue with less than 500 native speakers to the more widely spoken Azerbaijani and Armenian languages.


Despite the rich history and culture of the region, it is still completely off the radar screens of many in the west. "Tajikistan," "Abkhazia" and "Astrakhan Oblast" are hardly names to conjure by in the popular imagination, after all. Those names that do resonate are related to specific stories that have been given coverage in the western media; Dagestan equals "The Boston Bombing" to many Americans, for example, and many Europeans will recognize Chechnya as "that place that Russia is at war with."


Just because the -stans, Oblasts, republics and autonomous regions that make up this part of the globe are not well known to the average western citizen, however, does not mean that they are not important squares on the global chessboard. And just because they may not be on the radar of the general public does not mean they are not on the radar of some of the richest and most powerful players in global geopolitics.


As one example of this interest, I present to you the U.S.-Azerbaijan Chamber of Commerce, an organization that sounds about as important to global geopolitics as the Groningen Chamber of Commerce. But look at its list of current and former advisors, chairmen and directors: former Vice President Dick Cheney, Bush family advisor James Baker III and his son James Baker IV, Henry Kissinger, Brent Scowcroft, Richard Armitage and, of course, former National Security Advisor and perennial Washington insider Zbigniew Brzezinski. This Chamber of Commerce boasts some of the most influential figures in US foreign policy in the past half century amongst its ranks. What is it they see that the general public doesn't?


There are two answers to that question. The first is the old real estate sales line: location, location, location! The region's key location in the backyard of some of the key powers of the Eurasian landmass, Russia and China foremost amongst them, has made it a geostrategic prize stretching back thousands of years. Dominated at different times and in varying degrees by Persian empires, Chinese dynasties, Mongol invaders and Soviet forces, the region has a rich history of being acted upon and a relatively short history as a geopolitical actor in its own right. Its position has long made it a key transport route, from the Han Dynasty's famed Silk Road connecting China and Persia thousands of years ago to President Xi Jinping's 21st century equivalent seeking to connect China to Turkey and beyond.


But more important even than its location and strategic value are the region's vast, largely untapped resources. The oil and gas fields of the Caspian Sea region are particularly sought after, containing the third-largest reserves of any fields on the planet. Azerbaijan in the Caucasus and Kazakhstan in Central Asia both have direct access to Caspian Sea oil, with Turkmenistan and Uzbekistan providing ample gas reserves. The dream of a Trans-Caspian pipeline has been in the works for years now to transport Central Asian reserves across to the Southern Caucasus and the so-called "BTC" pipeline funneling the energy through Azerbaijan and Georgia to Turkey has been equally prized as a way for Europe to find an alternative to Russia's increasingly-threatening stranglehold over energy known as Gazprom. The region also contains strategically important deposits of uranium as well as industrially useful minerals including copper, manganese, turngsten and zinc.


Another equally important, although seldom acknowledged, resource in the region revolves around the extensive opium trade, especially in Afghanistan. The Afghan opium trade is estimated to bring in as much as $200 billion a year, accounting for as much as 92% of the world supply. As we shall see, control of this region involves domination of that especially lucrative business and all of the attendant economic benefits that result from it.


The importance of a long-term US presence in the region to establish western dominance over this location and its resources is no secret. It has been written about extensively by the think tanks that typically serve as the mouthpiece for NATO's foreign policy interests.


Take for example a 1992 analysis of the region from RAND's National Defense Research Institute entitled "Central Asia: The New Geopolitics." It was written shortly after the collapse of the Soviet Union while the newly independent republics of the region were still orienting themselves to their new geopolitical reality and it was penned by Graham Fuller, a former CIA station chief in Kabul whose name will come up again later in our study. He wrote:


"It is primarily Central Asia's strategic geopolitical location - truly at the continent's center - and the broadly undesirable course of events that could emerge if the region were to drift toward instability, that constitute the primary American interest (in the region).[...]Thus, given the potential for untoward developments in the region for Western interests, modest hands-on American influence in the region is desirable."


By 2004 the need for this "modest hands on American influence" had gained momentum. In an article published that year by the Cambridge Review of International Affairs called "The United States and Central Asia: In the Steppes to Stay?" Svante E. Cornell of the Central Asia-Caucasus Institute raised some of the key reasons for increasing US involvement in the region:


"As US engagement in Central Asia becomes more permanent, it will increasingly become a factor in both regional politics and the domestic politics of the several Central Asian countries. That role raises a host of questions. Chief among them is how regional powers such as Russia and China will react to the US presence. A second concerns the implications both for the political development among the region's states and for the future of radical Islam."


And in 2011 the Project 2049 Institute, which includes Zbigniew Brzezinski's son on its Board of Directors, published a document proclaiming "An Agenda For the Future of U.S. - Central Asia Relations" which contains this interesting passage:


"U.S. policymakers have been careful to avoid the metaphor of a "Great Game" in Central Asia. Yet it has been often invoked by others, not least by observers in Moscow, Beijing, and other neighboring powers. The U.S. must continue to reject this metaphor, for such notions are based on flawed assumptions and fraught with risks for the United States."


NEW GREAT GAME


So what is this "Great Game" metaphor that is so upsetting to the Western establishment? The "Great Game" refers to the struggle for supremacy between the British and the Russians. The Game broadly took place from the signing of the Russo-Persian Treaty of 1813 until the Anglo-Russian convention of 1907, but although the term was coined in the early 19th century it didn't hit the popular imagination until Rudyard Kipling's Kim was published in 1901. It was three years after that, in 1904, that The Geographical Journal published an article that articulated the reason that these great powers were engaged in the struggle for this piece of the globe.


The article was called "The Geographical Pivot of History" and was written by Sir Halford John Mackinder PC, the Director of the London School of Economics that was founded by the Fabian Society and folded into the heart of the British establishment in the University of London in 1900. (The cornerstone of the School's Old Building on Houghton Street was laid by King George V himself). Mackinder is considered the father of the study of geopolitics.


"The Geographical Pivot of History" is the document that is often said to be the founding document of geopolitics and constitutes the first formulation of what would come to be called the "Heartland Theory." This theory starts from the division of what Mackinder called the "World Island" into inherently divided isolated areas. Each of these areas has its own part to play in the unfolding of world history, with the area he called the "Heartland" of the central Eurasian landmass being the pivot point from which a civilization could derive the geopolitical and economic leverage with which to dominate the world as a whole. This was summarized in a famous dictum from his 1919 work, Democratic Ideals and Reality


"Who rules East Europe commands the Heartland;


Who rules the Heartland commands the World-Island;


Who rules the World-Island commands the World."


Looking at the map of what Mackinder had in mind for the Heartland it's apparent that the "heart" of this Heartland is indeed the Central Asia-Caucasus region. This is what Russia and Britain were so intent on wresting from each other in the 19th century Great Game: control of the region from which the building of a world empire would be possible. And this is why the Project 2049 Institute and others desperately want to downplay this idea. They don't under any circumstances want anyone to believe that the US and its NATO allies are intent on regional domination or the formation of a world empire.


But fast forward to 1997. In that year, Zbigniew Brzezinski released his book The Grand Chessboard: American Primacy and its Geostrategic Imperatives (evidently Brzezinski wasn't so shy about calling world domination for what it is). Brzezinski does not mince words about the Eurasian Heartland and how important it is to American "global primacy":


"For America, the chief geopolitical prize is Eurasia. For half a millennium, world affairs were dominated by Eurasian powers and peoples who fought with one another for regional domination and reached out for global power. Now a non-Eurasian power is preeminent in Eurasia - and America's global primacy is directly dependent on how long and how effectively its preponderance on the Eurasian continent is sustained."


He goes on to refine Mackinder's "Heartland" notion down to a specific area he calls the Eurasian Balkans. This area is precisely the Central Asia-Caucasus region. He explains its importance thus:


"The Eurasian Balkans, astride the inevitably emerging transportation network meant to link more directly Eurasia's richest and most industrious western and eastern extremities, are also geopolitically significant. Moreover, they are of importance from the standpoint of security and historical ambitions to at least three of their most immediate and more powerful neighbors, namely, Russia, Turkey, and Iran, with China also signaling an increasing political interest in the region. But the Eurasian Balkans are infinitely more important as a potential economic prize: an enormous concentration of natural gas and oil reserves is located in the region, in addition to important minerals, including gold."


The use of the metaphor of the Balkans is doubly evocative for students of history; it represents not only the strife and ethnic conflict we saw in the "Balkanization" of Yugoslavia toward the end of the 20th century, but also the powder keg of tensions that ignited the First World War at the beginning of the 20th century. Brzezinski predicted that the first great war of the 21st century would take place in this area of the globe and four years later, in the first year of the 21st century, the United States and its NATO allies invaded Afghanistan beginning an occupation that became the longest military operation in the history of America. Meet the New Great Game, same as the Old Great Game. This time it's NATO against China, Russia and what might be loosely termed a 'resistance bloc,' but the idea is almost the same: dominate Central Asia-Caucasus and use it as pivot point to dominate the world.


The Old and New Great Game are similar in many ways. The Old Great Game sprang from British fears that Russian incursion into Central Asia would threaten to topple their hold over the crown jewel of the British Empire, India; the New Great Game springs from the fear that Russian and/or Chinese dominance over Central Asia and the Caucasus would prevent NATO from achieving its goal of "full spectrum dominance." The Old Great Game involved the British invasion of Afghanistan in 1838 and attempt to install a puppet regime; the New Great Game involved the NATO invasion of Afghanistan and attempt to install a puppet regime. The Old Great Game relied heavily on espionage, spycraft and subterfuge to undermine Russia's sway over the Heartland; and as we shall see, the New Great Game also heavily relies on covert means to undermine Russian and Chinese influence in the region.


OPERATION GLADIO


To understand the way that subterfuge is being used in the New Great Game today, we must first understand an important clandestine operation which is commonly known as "Operation Gladio."


In very broad and rough terms, "Operation Gladio" was a NATO plan to use "stay-behind" paramilitary armies to counter a potential Soviet invasion and occupation of Europe. Although this is the way that "Operation Gladio" is commonly understood today, almost every part of that description is technically incorrect.


Firstly "Operation Gladio" was not a name for the overall program, which involved 12 NATO member nations (Belgium, Denmark, France, Germany, Greece, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain and Turkey) and four neutral countries (Austria, Finland, Sweden and Switzerland), but specifically its most famous incarnation in Italy. In Belgium the operation was codenamed "SDRA-8." Sweden had its "Projekt-26." In Greece it was "Lochos Oreinon Katadromon" and here in the Netherlands it was "GIIIC" later rebranded as "G7."


Secondly, the operation was not inherently a NATO one. It was first coordinated in 1948 by a trans-Atlantic body based in France known as the "Western Union Clandestine Committee." After the creation of NATO in 1949 the body was folded into the organization's Supreme Headquarters Allied Powers Europe (SHAPE) under the revised name of the Clandestine Planning Committee. The plan's origins stretch back even further, arguably to the creation of British MI6's "Section D" in 1940, a ramshackle group of recruits from England's North Sea coast that would wage sabotage and guerrilla warfare in the event of a Nazi invasion of the British Isles. The central role of the CIA's "Office of Policy Coordination" and the Special Operations Branch of MI6 in establishing the operation, as well as the training of stay-behind forces alongside British SAS units at Fort Monckton and American Special Forces at the infamous School of the Americas, needs also to be stressed.


Thirdly, although the individual stay-behind programs were organized in Europe, the scope of their operations were not limited to Europe and strayed far from any supposed mandate to prepare for a Soviet invasion. As we shall see, "Gladio" operations included and include everything from drug running and money laundering to terror attacks and political assassinations.


I will not get into the specifics of how these stay-behind units operated in the various countries or the various incidents they have been implicated in. If any part of the "Gladio" story is well-known, it is the operations in Europe and their role in such events as Italy's "Years of Lead." These topics have been covered in great detail by very capable writers, filmmakers, historians and researchers, and I'll refer you to some of the most valuable English language resources on the overall program, including Allan Frankovitch's groundbreaking 1992 documentary, Gladio: The Ring Masters , Daniele Ganser's seminal work, NATO's Secret Armies , Richard Cottrell's Gladio: NATO's Dagger at the Heart of Europe , and the various resources available at sites like operation-gladio.net.


What is important for our study today is the strategic doctrine employed by the Gladio operations known as the "strategy of tension." This doctrine involves the creation, encouragement or exacerbation of political, religious, ethnic or other forms of conflict in order to incite fear in a population and manipulate public opinion. An oft-cited example of the strategy of tension are the "Years of Lead" that rocked Italy with a wave of terrorist atrocities from the 1969 bombing of the Piazza Fontana to the Bologna railway station bombing of 1980. The story of the links between NATO Gladio operations and the various paramilitary groups whose bombings, kidnappings and assassinations terrorized a nation is a fascinating one, but far too detailed for today's study. The takeaway point is that the national psychosis caused by spectacular terror attacks can be used to turn public opinion against certain groups and make actions that were formerly politically inconceivable virtually inevitable.


It is not difficult to see how this strategy could be used in some form in a region as linguistically, ethnically, culturally and religiously diverse and divisive as Central Asia and the Caucasus. Indeed, as Brzezinski points out in regards to his "Eurasian Balkans" concept:


"Every one of [the Eurasian Balkans] countries suffers from serious internal difficulties, all of them have frontiers that are either the object of claims by neighbors or are zones of ethnic resentment, few are nationally homogeneous, and some are already embroiled in territorial, ethnic, or religious violence."


With regards to the Central Asia-Caucasus region in particular, Gladio operations in Turkey are of primary importance. Noting that the Turkish Gladio operations relied on cooperation with the nationalistic, racist, baldly expansionist Pan-Turkism movement, Daniele Ganser describes the Turkish secret army as "more violent than that of any other stay-behind in Western Europe." He describes the origins of the Turkish stay-behind, known as "Counter-Guerrilla," this way:


"Under the headline 'The Origins of "Gladio" in Turkey' the Paris-based Intelligence Newsletter reported in 1990 that they had obtained 'one of the recently declassified original strategy documents engendering the Western European "stay-behind" or "Gladio" network: US Army General Staff's Top-Secret March 28, 1949 Overall Strategic Concepts.' In an adjoining document, JSPC 891/6, section 'Tab B,' a specific reference is made to Turkey highlighting how the Pan-Turkism movement could be exploited strategically by the United States. Turkey, according to the Pentagon document, is an 'extremely favourable territory for the establishment of both guerrilla units and Secret Army Reserves. Politically the Turks are strongly nationalistic and anti-Communistic, and the presence of the Red Army in Turks will cause national feeling to run high.' Intelligence Newsletter thereafter correctly related that the Turkish secret army called Counter-Guerrilla was run by the Special Warfare Department and consisted of five branches: 'Training Group, including interrogation and psychological warfare techniques; Special Unit, specialised since 1984 in anti-Kurd operations, Special Section, special operations in Cyprus; Coordination Group, also called the Third Bureau; and Administrative Section.'"


The violent atrocities committed by Counter-Guerrilla are beyond the scope of this investigation, but include a September 1955 'false flag' bombing of a key Turkish target in Greece which was blamed on the Greek police, participation in three military coups against Turkey's own government, the torture of political opponents in the torture villa of Erenköy, and assorted robberies, assassinations, kidnappings, sabotage, and other terrorist activities.


In the vicious Turkish nationalist movement, with its interest in uniting all of the Turkish peoples into one Pan-Turkic nation, NATO found a convenient ally in its quest to counter Soviet influence in the Caucasus region and to gain a toehold in the Eurasian Balkans. In order to understand how this alliance operated, let's examine one particular person who has been identified as one of the top Turkish "Gladiators": Abdullah Çatlı.


Probably the single most famous members of the Counter-Guerrilla, Abdullah Catli's remarkable and highly improbably career tells a story of assassinations, terror attacks, drug running, daring prison escapes and international intrigue outrageous enough to make even the most imaginative Hollywood script writer blush. Beginning as a petty street thug with the nationalist movement, Catli rose through the ranks to become a brutal enforcer for the dreaded Grey Wolves "youth organization" connected to the Turkish Gladio movement. By 1978 he had become the second in command of the organization and a top Counter-Guerrilla operative, implicated in multiple high-profile assassinations, including the murder of Abdi Ipekci, the country's most well-known newspaper editor. Forced underground by his growing notoriety, Catli became an important international Gladiator, participating in the 1981 assassination attempt of the Pope. He traveled with Italian Gladiator Stefano Della Chiaie to Latin America and Miami in 1982 and then headed to France where he planned the bombing of the Armenian Genocide Memorial at Alfortville, and the failed assassination attempt against activist Ara Toranian.


In 1984 it seemed that the long arm of the law had finally caught up with him. Paid by his Turkish intelligence handlers in heroin, Catli was arrested in Paris for drug trafficking and sentenced to seven years imprisonment. In 1988 he was sent to Switzerland, where he also wanted for drug trafficking, but in March 1990 he was sprung from prison in a nearly unbelievable prison break that involved the use of a helicopter. Le Monde Diplomatique in an explosive report on the Turkish deep state referred vaguely to the "mysterious accomplices" who helped him to escape, but others have specifically identified the escape helicopter as a NATO vehicle. In subsequent years, while still an international fugitive on INTERPOL's "Most Wanted" list and wanted by the authorities of multiple countries for a series of crimes, Catli returned to Turkey where he was recruited by the police for "special missions" and entered and exited the United Kingdom and the United States with complete impunity.


This is the character profile of a Gladio operative: a person above the law, working in support of something identified in Turkey as the "deep state" that transcends the ordinary rules, laws, or even the constitutions of any individual governments. In the case of the Turkish deep state, there is an intimate connection with the greater Gladio operation and the shadowy NATO and Pentagon operations branches associated with it.


Returning to the question of Gladio interference in the Central Asia-Caucasus area of operations, one lowlight from Catli's ignoble career is particularly instructive. In 1995 Catli participated in a planned coup attempt against Azerbaijani president Helmar Aliyev, the father of the country's current president. The planned assassination failed, but Catli (predictably) was not caught or brought to justice for his participation in the scheme. But while the assassination itself did not result in the death of Aliyev, it did have a desirable effect for NATO's designs on the South Caucasus. From that point on, Azerbaijan began to leave the diplomatic orbit of its old Soviet-era Russian masters and has since become a staunchly Western-oriented nation with an all-star roster of power players on its US-Azerbaijan Chamber of Commerce and ongoing projects with ChevronTexaco, BP, Pennzoil and other major oil conglomerates. In fact, the country has been a NATO partner and prospective member of the alliance for several years now, a potentially important NATO ally in Russia's backyard, and one with access to the prized Caspian oil and gas fields and pipelines.


OPERATION "GLADIO B"


But all careers, no matter how remarkable, come to an end, and the end of Abdullah Catli's career was, perhaps fittingly, as spectacular as his career itself.


At approximately 7:25 PM on the evening of November 3, 1996, a Mercedes 600 SEL crashed into a truck near the Northwestern Turkish town of Susurluk, killing three of the four passengers. But this was no ordinary car crash. Among the dead: a senior police chief, a former beauty queen, and Abdullah Catli. The survivor: a Turkish MP who came away with a fractured skull and a broken leg.


A 1998 L.A. Times report on the crash described the scene this way:


"Strewn amid the roadside wreckage was evidence of Catli's collusion with the Turkish secret service. Along with several handguns, silencers, a cache of narcotics and a government-approved weapons permit, Catli was carrying six photo ID cards, each with a different name, and special diplomatic credentials issued by Turkish authorities."


The importance of this crash to the course of Turkish politics is difficult to overstate. For many, it conclusively confirmed the "deep state" connections between terrorists like Catli and the upper reaches of governmental power that many had long believed existed. The resulting scandal led to a series of investigations and reports, as well as arrests, convictions, resignations, reforms, promotions, and the death of several Susurluk investigators in car crashes eerily similar to the Susurluk crash itself. And according to at least one key FBI whistleblower, Susurluk marks the beginning of a transition from the original Gladio operations using ultranationalist operatives and a Gladio "Plan B" involving Islamic terrorism as the conduit for the strategy of tension.


The whistleblower in question is Sibel Edmonds, hired by the FBI to work as a translator in the Washington field office in the wake of 9/11. She worked with agents around the United States helping to translate intercepted communications in a number of counterintelligence cases, including Agent Joel Roberts in the Chicago field office whose targets included Abdullah Catli and some of his Gladio associates. While there, one of the translators she was working with was Jan Dickerson, who had worked for both the American Turkish Council (ATC) and the Assembly of Turkish American Associations, organizations that the FBI publicly confirmed were targets of FBI counterintelligence operations. Her husband, Douglas Dickerson, was a Major in the US Air Force who had served in Ankara working on weapons procurement for the Pentagon in the Central Asian region. In December 2001 the Dickersons visited Edmonds and her husband at their home in Alexandria and attempted to recruit them into a Turkish spying ring that had penetrated the FBI, the Pentagon and the State Department. She refused and her complaints about the Dickersons and their involvement with Turkish lobbying groups eventually led to her firing. After years of fighting this dismissal and attempting to go on the record with her knowledge, first through official FBI channels and eventually through the court system, the FBI was eventually forced to admit that her claims had "some basis in fact," a judgement later bolstered by a Department of Justice's Inspector General report that concluded "many of Edmonds's core allegations relating to the co-worker were supported by either documentary evidence or witnesses other than Edmonds" and noting that "the evidence clearly corroborated Edmonds's allegations" about Jan Dickerson's work problems. Despite all of this, a little-known evidentiary rule known as the "State Secrets Privilege" was invoked by the Justice Department to remove her First Amendment rights and prevent her from going on record about many of the specifics of her case. This led to her being labeled "the most gagged person in American history" by the American Civil Liberties Union.


Edmonds paints the story of the FBI's counterintelligence operations against a Gladio network that had contacts and operatives in the United States but protection from powerful Washington players like some of those on the board of the US-Azerbaijani Chamber of Commerce and similar organizations. After the turning point at Susurluk, these operations started to focus on Islamic terrorists and radicals, who presumably could equally well be used to maintain a strategy of tension and help accomplish foreign policy goals in Central Asia and the Caucasus.


Again, it is important to look at the careers of some of those who have been identified as being part of this "Gladio B" operation. However, we have to note that unlike in the case of Abdullah Catli, we have no official, independent confirmations of the existence of this Gladio B network or its various operatives. Here we are relying on information in the public record which corroborates Edmonds claims and paints a vivid picture of the intersection between Muslim extremists, drug runners, terrorists and money launderers with the upper levels of the US State Department, Pentagon and NATO.


One such person is Fethullah Gulen, a Turkish Imam who fled political prosecution in Turkey for advocating that an Islamic state replace the existing Turkish government. Interestingly, he fled to the United States, eventually settling in Pennsylvania. He then set up an educational foundation, the "Gulen Movement" and within four years had opened up 350 madrasas in the Central Asia-Caucasus region. His network would go on to include Islamic schools in over 140 countries, with an estimated net worth of over $20 billion.


In January 2001 a Turkish prosecutor, citing an Ankara University report whose author was subsequently assassinated, claimed that "there is a link between Gulen and the CIA" which included agency help in securing passports for the school's English teachers in the Central Asia-Caucasus region. This claim was bolstered by former Turkish Intelligence Chief Osman Nuri Gundes, whose memoirs revealed that 130 of these "English teachers" in Kygyzstan and Uzbekistan alone were actually CIA operatives, issued special diplomatic passports under a program codenamed "Friendship Bridge."


Interestingly, the Washington Post attempted to deny the allegations by seeking comment from Graham Fuller, who you might remember as the author of the "Central Asia: The New Geopolitics" report we referred to earlier. Fuller was a former CIA station chief in Kabul who claimed that the idea of a Gulen-CIA connection was "improbable" despite admitting he has "absolutely no concrete personal knowledge whatsoever about this." Even more interestingly, Fuller himself wrote a letter of reference for Gulen that was used in Gulen's ongoing legal battle over his immigration status in the US.


The remarkable rise of this Imam with no particular background or accomplishments to become the head of a multi-billion dollar Islamic school network operated from a secret compound in Pennsylvania that appears to be working with the CIA in the highly sensitive Central Asia-Caucasus region appears to fit in line with what we know about the "deep state" actors in the covert battle for influence in this highly prized square of the chessboard.


Another extremely interesting figure is Yasin Al-Qadi. He was an alleged financier of Islamic terror that was the subject of an intensive investigation by FBI Agent Robert Wright. Wright's investigation, codenamed "Vulgar Betrayal," discovered evidence that implicated Al-Qadi in a terrorist finance ring centered in Chicago that linked to the 1998 African embassy bombings, but when he proposed a criminal investigation, his supervisor flew into a rage, yelling "You will not open criminal investigations. I forbid any of you. You will not open criminal investigations against any of these intelligence subjects." Wright was taken off the Vulgar Betrayal investigation one year later and the investigation itself was shut down the following year. In 1999 and 2000, the UN placed sanctions on Al-Qadi who was identified in UN Security Council resolutions as a suspected associate of Al-Qaeda.


At the same time, Al-Qadi was also a key investor in a company called Ptech, which marketed "enterprise architecture software" designed to provide complete god's eye views of an organization's structure, from transactions, systems and processes to inventory, transactions and personnel. Ptech's client list included some of the most sensitive databases in the country, including those of DARPA, the FBI, the Secret Service, the White House, the Navy, the Air Force, the FAA, and NATO. According to Ptech's own business plan, the company had a contract to work on modeling the FAA's "network management, network security, configuration management, fault management, performance management, application administration, network accounting management, and user help desk operations" that was operative on the morning of 9/11. After 9/11, Ptech's offices were raided and the company's CEO and CFO were eventually indicted, and Yasin Al-Qadi was placed on a special terrorist finance watchlist by the US Treasury Department.


Despite being watchlisted by both the UN Security Council and the US Treasury Department, Al-Qadi continued to operate internationally, with an Albanian passport and spending time in Turkey. He has since been revealed to have engaged in numerous meetings with then-Turkish Prime Minister Recep Tayyip Erdogan and the Turkish Intelligence Chief. Earlier this year the ex-Istanbul police chief revealed that Erdogan had helped Al-Qadi to enter the country several times despite being banned by the Cabinet.


Another figure of importance whose name comes up in connection with this investigation is Ayman Al-Zawahiri, formerly Bin Laden's right hand man and the current nominal leader of the Al-Qaeda organization. According to Edmonds he appeared as a figure in several FBI counterterrorism investigations in the 1990s, turning up in Turkey, Albania, Kosovo and Azerbaijan. His travels to the Balkans in the mid 1990s make sense given Al-Qaeda involvement in the so-called Yugoslav Wars, but his involvement in Turkey and Azerbaijan is of particular relevance to this study. Edmonds claims that he worked with the Turkish arm of NATO and NATO itself during this period, meeting several times with US military attaches in Baku, Azerbaijan.


Other tantalizing connections present themselves in figures like Hüseyin Baybaşin, known as "Europe's Pablo Escobar" for his heroin operations smuggling heroin to the UK. After his imprisonment here in the Netherlands for drug smuggling he contacted Edmonds with details about Turkish NATO involvement in the drug smuggling operations he had been a part of.


There are numerous such leads, connections and clues in this investigation that point to a deep NATO/US involvement in covert operations that tie back to this important area of the globe. But what does it all mean.


CONCLUSION(?)


It would be a satisfying conclusion to this investigation to present to you the definitive proof, documents or testimony positively linking the increasingly deadly terror attacks and incidents taking place in the Central Asia-Caucasus region to a Gladio "Plan B" group being directed by NATO and the Pentagon. Everything that we have seen today has demonstrated that:


a) there are vital strategic interests for the US and its allies in the Central Asia-Caucasus that make it a prime target for covert operations;


b) such "strategy of tension" operations have been conducted in the past by people we definitively know were linked to NATO's covert army;


and c) that there are a number of influential people operating in and around the region and in close cooperation with the Turkish deep state, American intelligence, the Pentagon and NATO who seem to be involved with ongoing operations today related to the fostering of religious sectarianism in the region.


As I say, it would be a satisfying conclusion to definitively state that persons A, B or C were connected to events X, Y, or Z, but obviously this is not possible at this time. The very nature of these covert operations means that, without some explosive new evidence or surprising new testimony from other whistleblowers, it is unlikely that Gladio B will be revealed in the way the original Gladio operations were. This does not mean, however, that we are completely powerless to identify these operations or to counteract the psychological effects that they are aiming at producing in the public.


The characters, events and storyline painted in this presentation are almost completely available in the public record through various news reports, government investigations, think tank documents, court filings, interviews and dozens of other sources. Those parts of the story that cannot be independently verified, like some of Edmonds' claims, can be corroborated by the sources in the public record. The task of piecing these bits of the puzzle together is a nearly overwhelming one, but it can be accomplished by a concerted effort by an informed and motivated public.


This is the principal of "open source investigation" which I am attempting to further in my work at CorbettReport.com. Next week this lecture will be published to my website along with a hyperlinked transcript sourcing all of the documents, reports and other evidence used in the creation of this presentation. From that point, the public is encouraged to use that source information to begin investigating other aspects of this case and to see how this narrative meshes or clashes with other pieces of evidence in the public record. Members of The Corbett Report community are of course invited to participate in this investigation by posting their own comments, analysis, links and replies on the posting of this lecture at CorbettReport.com.


This task is critical because in the quest to control the resources of the Central Asia-Caucasus region, a strategy of tension is being employed. We see a nearly daily parade of terror attacks in the Northern Caucasus region on Russia's doorstep and in the "New Silk Road" area of Chinese interest. Just this month, the head of the Collective Security Treaty Organization (often seen as a counterbalance organization to NATO) claimed that instability in the region was being deliberately fostered by the West, citing a disproportionate increase in US embassy staff and influx of Western-backed NGOs into the region. "The West crudely interferes in the internal affairs of other governments, trying to manipulate public opinion, economically and financially affecting the government and population," he said.


If this is indeed the case, then one of the key ways to counteract this effect is to simply retain our skepticism when it comes to spectacular terror attacks in the region. With an increased awareness of covert operations, false flag attacks, and other acknowledged instruments of terror in the strategy of tension, we thereby disarm the effectiveness of these tools. The psychological manipulation that these geopolitical machinations rely on is only possible if the populace is kept in fear and ignorance, and the answer to that can only be understanding and openness.


Thank you for your time.


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Jon Stewart calls Andrea Tantaros' 'awesome' rant "most ridiculous thing I've ever heard"


© YouTube



host Jon Stewart dissected Fox News Andrea Tantaros' argument that the discussion surrounding the CIA's torture of detainees was being fueled politically to cast the U.S. as not being "awesome."

"First of all, this administration doesn't want us to have this discussion," Stewart said. "And also, that's the most ridiculous thing I have ever heard."


On Tuesday, Tantaros and her fellow panelists accused Senate Democrats of releasing the report detailing abuses levied against detainees following the 9/11 attacks in an effort to make the country look bad.


"The United States of America is awesome, we are awesome," Tantaros said at the time. "But we've had this discussion. We've closed the book on it, and we've stopped doing it. And the reason they want to have this discussion is not to show how awesome we are. This administration wants to have this discussion to show us how we're not awesome."




Correspondent Hasan Minhaj stepped in as a surrogate for Tantaros, telling Stewart he thought her rant was "awesome," as well.

"It reminds me of our national anthem," Minhaj said, before playing a clip of "" from "I'm pretty sure that it's supposed to be ironic," Stewart told Minhaj.


"It is not fair to hold us to an impossible standard like 'never torture,'" Minhaj responded, adding "air quotes."


Stewart then pointed out that it was the U.S. who set that standard, as defined in the United Nations' Convention Against Torture. He highlighted Article 2 of the document, which states that "no exceptional circumstances" exist allowing a country to justify torture.


"Signed in 1988 by no shrinking violet, President Ronald Reagan," Stewart argued. "We signed that."


Minhaj retorted by saying the U.S. signs "ton of sh*t."


"Look at the Declaration of Independence - we wrote, 'All men were created equal,' while we had slaves," he told Stewart. "That was pretty awesome."


Watch the discussion, as posted online on Wednesday, below.


[embedded content]


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Duck and cover: The lull is breaking, the storm is nigh


September 15, 2008 is the day that Lehman died and the moment that the world's central banks led by the Fed went all-in. As it has turned out, that was an epochal leap into the most dangerous monetary deformation that the world has ever known.

It needn't have been. What was really happening at this pregnant moment was that the remnants of honest capital markets were begging for a purge and liquidation of the speculative rot that had built up during the Greenspan era. But the phony depression scholar running the Fed, Ben Bernanke, would have none of it. So he falsely whooped-up a warning that Great Depression 2.0 was at hand - sending Washington, Wall Street and the rest of the world into an all-out panic.


The next day's AIG crisis quickly became ground zero - the place where the entire fraudulent narrative of systemic "contagion" was confected. Yet that needn't have been, either. In truth, AIG was not the bearer of a mysterious financial contagion that had purportedly arrived on a comet from deep space.


As subsequent history has now proven, AIG's $800 billion globe spanning balance sheet at the time was perfectly solvent at the subsidiary level. Not a single life insurance contract, P&C cover or retirement annuity anywhere in the world was in jeopardy on the morning of September 16th.


The only thing gone awry was that the London-based CDS (credit default swap) operation of AIG's holding company was monumentally illiquid. Joseph Cassano and the other latter-day geniuses who were running it had spent two decades picking up nickels (CDS premium) in front of a steamroller, while booking nearly the entirety of these winnings as profits - all to the greater good of their fabulous bonuses.


But now, as the underlying securitized mortgage market imploded, they needed to meet huge margin calls on insurance contracts they had written against mortgage CDOs. In truth, however, the whole mountain of CDS was bogus insurance because AIG's holding company did not have a legal call on the hundreds of billions of cash and liquid assets ensconced in dozens of its major subsidiaries.


From a legal and cash flow point of view, Hank Greenberg's mighty insurance empire was essentially a mutual fund. Cassano and his posse had been implicitly pledging assets (via AIG's corporate or consolidated AAA rating) that belonged to someone else - namely, the insurance subsidiaries and the state insurance commissioners who effectively controlled them.


Yet this scandalous fact was not a world crisis, nor really any crisis at all. Yes, the several hundred billions of CDS contracts sold by the Cassano London operation were bogus and could not be paid off - since the holding company had no available liquid capital. Nevertheless, they had been purchased almost entirely by a dozen or so of the largest banks in the world, including Deutsche Bank, Barclays, Societe Generale, Bank of America/Merrill Lynch and Goldman Sachs, to name a few of the usual suspects. And as I documented in The Great Deformation, these banks could have readily afforded the hit on the underlying CDOs - and they deserved it too.


As to the former point, the combined balance sheet of the impacted big banks was about $20 trillion at the time, and the potential loss on the CDS contracts that AIG's holding company could not fund was perhaps $80 billion at the outside. After all, most of the CDO paper which these mega-banks had purchased and then magically transformed into AAA credits (and thereby could hold without posting a dime of capital) consisted of the so-called "super-senior" tranches. The really nasty crud at the bottom of the CDO capital structures - which did generate deep losses - had been pawned off to institutional investors and trust funds for Norwegian fishing villages and the like.


So the day of reckoning for AIG's CDS fraud presented no danger to the world's banking system. The loss might have amounted to 0.5% of their combined footings - a one-time hit that Wall Street brokers would have counseled to ignore and which might have zapped banker bonuses for the next year or even less.


And those foolish bankers did need to be punished for negligence, stupidity and unseemly greed. In point of fact, Cassano was never indicted for his bulging book of bogus CDS insurance because it amounted to fraud in plain sight. Any one who read AIG's 10K could have seen that the consolidated balance sheet of AIG was riddled with dividend stoppers and capital conservation limits imposed by the insurance regulators at the subsidiary level. Cassano never, ever had the cash to meet margin calls or pay-off the supposedly remote risk of actual claims; his policies had been purchased all along by the proverbial greater fools.


But this calamity of stupidity and negligence has turned out to be a really big thing in the history of the modern financial era; it was indeed the Rubicon. By falsely transforming a negligible hit to the balance sheet of the world's mega-banks - most of which were quasi-socialist institutions in Europe and would have been bailed out by their governments anyway - into the alleged collapse of the mighty AIG, Secretary Paulson, Bernanke and their cabal of Wall Street henchman opened the door in one fell swoop to the present global monetary madness.


At that fraught moment in time, AIG was the financial gold standard - the massive AAA balance sheet that anchored the entire financial market. So when out of the blue - literally without even a few days notice to even the attentive public - it had apparently descended into a $180 billion black hole, the myth of systemic breakdown and all-consuming financial "contagion" was not only born; it gained instant resonance throughout Wall Street and Washington.


The rest is history, as they say. And what a fantastic, but lamentable history it was. Owing to the cursed recency bias that now animates the mainstream narrative, it has already been forgotten that today's elephantine central bank balance sheets did not remotely exist just six years ago. Indeed, they could not have been imagined back then - not even by Bernanke himself.


But upon the eruption of the AIG catalyst, the mad money printing dash was on. As shown below, it had taken the first 94 years of the Fed's existence to grow its balance sheet footings to $900 billion - something achieved by steadily plucking new credits out of thin air over the years and decades. But within six weeks of the so-called AIG meltdown, Bernanke had replicated what had taken his predecessors nigh on to a century to accomplish.


And then he didn't stop. Fighting the fabricated enemy of "contagion" and thereby thwarting Wall Street's desperate need for a cleansing financial enema, he had nearly tripled the Fed's historic balance sheet by year-end 2008, and on it went from there.



And of course it was not just the Fed running the printing presses red hot. Owing to both Keynesian ideology and defensive necessity, the other major central banks of the world followed suit. At the time of the crisis, the combined balance sheet of the Fed, ECB and BOJ was $3.5 trillion or about 11% of GDP. In short order that number will reach $11 trillion and 30% of the combined GDP of the so-called G-3.

Throw in the BOE, the People's Printing Press of China, the bloated central banks of the oil exporters and Russia and assorted others like the reserve banks of India and Australia and you have total central banks footings in excess of $16 trillion or roughly triple the pre-crisis level.



This tsunami of central bank credit did little for the real economy in places where the private sector was already at "peak debt" such as the US and Europe; and it did fuel one final blast of the malinvestment boom in places that still had balance sheet runway available like China, Brazil and much of the rest of the EM world.

But what it did do universally and thunderously was to fuel a financial asset inflation the likes of which the world had never before seen.


Prior to their recent stumble, the combined equity markets of the world had reached a capitalization of nearly $75 trillion compared to barely $25 trillion at the dark bottom in March 2009. And, yes, $50 trillion of gain in a comparative historical heartbeat did wonders for the net worth of the global 1%.


But it also did something else; it destroyed the remaining vestiges of financial market stability and honest price discovery. After 6-years of the central bank tsunami, two-way markets were gone; the shorts were dead; skeptics were out of business; greybeard investors had retired; speculators regularly bought downside "protection" (i.e. puts on the S&P 500) for chump change; and the law of "buy the dips" became unassailable.


Even more crucially, capital markets were transformed into rank casinos that were virtually devoid of all economic information......except, except the word clouds, leaks and sound bites of central bank speakers and their tools in the press and monitors in the banks, brokerage houses and hedge funds. At length, this meant that the only reason to buy was that virtually every risk asset class was rising; and it also meant that the only risk worth worrying about in a day-trading market was from the verbal emissions of central bankers and their Wall Street accomplices and stooges.


So as long as the central bank con job lasted, there was no reason not to buy, buy, buy. The financial world's greatest clown, Jim Cramer of CNBC, became a prophet in his own time. Indeed, the man's stupendous insouciance became embedded in the casino itself.


And the VIX is the smoking gun of proof. Over the span of approximately 72 months, the world's raging central bankers simply drove risk right out of the casino.



Except they didn't actually banish financial risk; they just drove it underground. When every financial asset is rising, the casino creates its own marginable collateral. Yesterday's gain becomes tomorrow's repo and re-hypothecated security against the next day's round of buying. And as long as asset values are inflating, the inherent risk in these daisy chains is muffled and discounted.

Yet that's exactly why the present mother of all financial bubbles is so dangerous and palpably unstable. The marginal "bid" is dependent upon wildly inflated collateral which is tucked away in the warp and woof of the entire global financial system. When the Chinese stock market hit a 5.5% air pocket within a few minutes two nights ago, for example, it was because the financial authorities there said icksnay to the repo of bonds issued by essentially bankrupt local development agencies.


Stated differently, there are financial time bombs planted everywhere in the world economy because central bank financial repression has caused drastic mispricing of nearly every class of financial asset, which is to say, every layer of collateral which has ratcheted-up the entire edifice.


As the redoubtable Ambrose Evans-Prichard so cogently noted, central bank ZIRP has radically compressed the debt markets of the world. This means that cap rates - the basis for valuation of tens of trillions of fixed income securities and real estate around the world - are now so aberrantly low as to be downright stupid:




What is clear is that the world has become addicted to central bank stimulus. Bank of America said 56pc of global GDP is currently supported by zero interest rates, and so are 83pc of the free-floating equities on global bourses. Half of all government bonds in the world yield less that 1pc. Roughly 1.4bn people are experiencing negative rates in one form or another.




Needless to say, this drastic central bank driven financial repression has unleashed a mindless pursuit of "yield" or short-term trading gains that give the concept of "irrational exuberance" an entirely new definition. Consider for example, the hapless mutual fund investors or institutional managers who have been buying energy sector CLOs. What is the collateral for the 5% yields advertised by these fly-by-night funds - often issued and managed by the same folks who sold housing sector CLOs and CDOs last time around?

Why its the leveraged loans issued by E&P operators in the shale patches. The collateral for these leveraged loans, in turn, is shale rocks 4,000-9,000 feet down under that have been worthless until approximately 2005 and would be worthless today without dramatically over-priced crude oil and drastically underpriced debt capital.


That is to say, the vaunted collateral in the shale patch craps out after about two-years unless new money is poured down the well bore and oil prices are above $75-$80 per barrel on the WTI marker price to cushion the sharp discounts back to the wellhead. But with marker price now plunging into the $50s, the drilling will soon stop, the production will crap-out, the shale rock collateral value will regress toward the zero bound, the E&P borrowers will default, the energy CLO's will implode and the hapless yield chasers will be left high, dry and panicked.


Cannot the same thing be said of Italian bonds at 2%? As reminded below, the Italian economy has not grown for six years, its debt-to-GDP ratio has gone critical and its political system is disintegrating.




So from whence did the "bid" arise after Draghi's "whatever it takes" ukase, which in just 24 months drove the yield on this sovereign junk from 7% to 2%?

Well, it came from its own bootstraps, that's what. The front-running speculators who backed up their trucks to Draghi's pronouncement where not sitting on a pile of cash looking for "value". Instead, they bought a pile of Italian bonds and then margined their purchases in the repo market. Yes, central bank ZIRP means essentially zero cost of carry; its the source of the bid that never asks whether 2% is enough. When bonds are held by the day or even hour, its far more than enough as long as the repo can be rolled and bond prices keep inflating.


Until they don't. Are the international dollar bonds of Turkish banks - one example of the $9 trillion EM debt market - issued against their loan books any different? Just consider the daisy chain of collateral there. Istanbul is comprised of miles of empty apartment and commercial buildings which are collateral for the Turkish bank loans. Yet what is the equity of the real estate developer borrowers of these generously leveraged loans - other than their "investments" in the Erdogan regime? More often than not its the down-payments on newly built space made by speculators who borrowed the money from the very same banks.


Indeed, in a ZIRP world the collateral chains extend so deep into the netherworld of speculation that no one can possibly trace them. That is, until after they erupt. Then we will learn all about the "risk" that was driven below the surface during the great bubble of the past 6 years just like we did in September 2008.


In short, what is happening now is that risk is coming out of hiding; the collateral chains are buckling; the financial time bombs are beginning to explode.


There is nothing especially new about this development - its the third occurrence this century. But there is possibly something different this time around the block.


This time the carnage could be much worse because the most recent tsunami of central bank credit was orders of magnitude larger and more virulent than during the run-up to the Lehman event or the dotcom implosion.


Moreover, the central banks are now out of dry powder - impaled on the zero-bound. That means any resort to a massive new round of money printing can not be disguised as an effort to "stimulate" the macro-economy by temporarily driving interest rates to "extraordinarily" low levels. They are already there.


Instead, a Bernanke style balance sheet explosion like that which stopped the financial meltdown in the fall and winter of 2008-2009 will be seen for exactly what it is - an exercise in pure monetary desperation and quackery.


So duck and cover. This storm could be a monster.


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Silent Pandemic: How toxins are changing childhood


When Josephine Wilson, 37, of Princeton, New Jersey, took her 1-year-old daughter to the pediatrician for a routine visit in July 2013, a flyer for a study on flame retardants in mothers and children caught her eye. The substances, found in furniture, electronics, and appliances, were on her radar because she'd read about potentially dangerous environmental chemicals when she learned she was pregnant. To limit their daughter's exposure, she and her husband had replaced their old sofa with a $3,000 version that uses wool as fire protection - a choice that was "pricey, but well worth it in our minds," she says. When she got home from the pediatrician, she sent urine samples from her and her daughter to the researchers.


Of the 48 participants in the study, which was conducted by the Environmental Working Group and Duke University, the Wilsons' levels were at the low end. Even so, the results weren't exactly comforting. They both tested positive for chlorinated Tris, a flame retardant that was voluntarily removed from use in children's pajamas in the '70s due to cancer concerns but is still used in furniture, as well as an ingredient in Firemaster 550, a newer chemical cocktail that may disrupt hormone signaling. Worse, the level of one chemical was three times higher for Wilson's daughter than it 
was for her. "We'd done everything
we could to remove these chemicals from our immediate environment, and they were still in our bodies," she says. "I'm not sure you can completely avoid them."


Avoid them? Probably not. Synthetic chemicals are everywhere - some 82,000 at last count, most of which have never been safety-tested. That's because the Environmental Protection Agency's Toxic Substances Control Act, designed to regulate chemicals, is a "broken, toothless piece of legislation," according to Philip Landrigan, M.D., pediatrician and dean for global health at the Icahn School of Medicine at Mount Sinai in New York City.


They're so ubiquitous that we all have at least traces of them in our bodies. In addition to dozens of other worrisome substances, the Centers for Disease Control and Prevention has found the hormone-disrupting chemicals bisphenol A (BPA) and phthalates in 93 percent and 73 percent, respectively, of routine blood and urine tests. Studies looking at infants' cord blood have turned up hundreds of man-made toxins - fire retardants, PCBs (banned in 1979), polyaromatic hydrocarbons from burning gasoline, and pesticides. The scariest part? "For 80 percent of chemicals in commercial use today, we have no information on the potential toxicity to babies in the womb or to infants and small children," says Dr. Landrigan. "We're flying without radar."




What is clear: As environmental exposures have risen, so have the rates of autism, ADHD, child- hood cancer, depression, anxiety, early puberty, and obesity. In 2014, Dr. Landrigan and Phillippe Grandjean, M.D., an adjunct professor of environmental health at the Harvard School of Public Health, published a paper in the journal calling the effects on children's cognitive development a "silent pandemic of neurodevelopmental toxicity." Scientists don't throw around the word "pandemic" lightly. They do it to get our attention. And they want to get our attention not just because chemicals are everywhere but because babies and young children - whose cells are rapidly dividing, whose brains and organs are still developing, whose hormones are changing - are uniquely, worryingly vulnerable to their pernicious effects.

The surge in childhood disorders


Finding environmental causes of childhood problems is like trying to pick out a criminal from a lineup of 100 look-alikes. There are many suspects, and proving that a certain substance is responsible requires not only ruling out alternatives but also gathering convincing evidence against the right culprit. So scientists have come to rely on prospective studies, in which they follow mothers during pregnancy, tracking which exposures occur, then keeping tabs on children three, five, or 10 years into childhood to see how they fare. Even those studies reveal only correlations, not causes. But they do raise strong concerns.


Take autism, which afflicts one in 68 children, an increase of 290 percent since 2002. In June, researchers at the Medical Investigation of Neurodevelopmental Disorders (MIND) Institute at the University of California, Davis, reported that pregnant women who lived near fields and farms treated with certain chemical pesticides had a 67 percent increased risk of having a child with autism spectrum disorder or another developmental delay.


"During pregnancy, the brain is developing synapses - the spaces between neurons where electrical impulses signal chemical messengers to pass information from neuron to neuron - and that may be where pesticides are disrupting development," says Irva Hertz-Picciotto, Ph.D., a MIND researcher and vice chair of the Department of Public Health Sciences at UC-Davis.


Autism is just one of many developmental disabilities, from dyslexia to cerebral palsy, on the rise. To take another example, the prevalence of ADHD has climbed 33 percent in the last 12 years. Studies have cast suspicion on several chemicals, including lead; phthalates, which are found in plastics and products like nail polish and hair spray; and BPA, which has been banned from baby bottles and sippy cups but is still used in the lining of canned foods and on cash register and ATM receipts.


"Genetic factors account for no more than 30 to 40 percent of all neurodevelopmental disorders, which means that environmental exposures are playing a causal role as well," says Dr. Landrigan. "There's no way that genetic changes, which take centuries to evolve, could be behind the rapid increases in the frequency of these conditions."


The same goes for certain childhood cancers, especially leukemia, says Mark Miller, M.D., M.P.H., director of the University of California, San Francisco, Pediatric Environmental Health Specialty Unit. "Since 1975, the rate of leukemia has increased 55 percent - and the most common type, acute lymphoblastic leukemia, has risen 85 percent," he says. "That jump can't be explained by genes." The search for possible causes has pointed to three main pollutants: tobacco smoke, paint and petroleum solvents (including those found in traffic pollution), and pesticides. "There's evidence that both pre- and post-natal exposure might be a problem," says Dr. Miller. "And in some cases leukemia might be triggered by two hits - one prenatally and another exposure later that ultimately pushes white blood cells to become abnormal."


Scientists suspect a similar phenomenon may be at work when kids are exposed to two or
more chemicals that have compa
rable effects on the body. For instance, several substances in commercial use today are classified as endocrine disruptors, which affect hormones in a variety of ways,
from increasing
or decreasing their production to imitat
ing their effects - and
they may be fueling
the mysterious uptick
in several health conditions, including childhood anxiety and depression and early puberty among girls.


A generation ago, fewer than 5 
percent of girls started puberty before age 8; today, that percentage has more than doubled, according to Louise Greenspan, M.D., a pediatric endocrinologist at the University of California, San Francisco, and co-author of . Potential culprits include flame retardants, phthalates, triclosan, BPA, pesticides, detergents, heavy metals like lead and cadmium, and even lavender and tea tree oil, which are potent endocrine disruptors, according to Julianna Deardorff, Ph.D., clinical psychologist and associate professor at the University of California, Berkeley's School of Public Health, who co-authored the book with Dr. Greenspan.


One reason puberty may be inching ever earlier: Childhood obesity is on the rise. In 1980, about 7 percent of kids were obese; by 2012, the number had climbed to 18 percent. Add in kids who are overweight, and more than a third of children under 12 now weigh more than they should. Even that troubling trend has been linked to environmental chemicals. "The more fat kids have, the more estrogen they produce and the more chemicals they store, so overweight kids are exposed to higher levels of potentially dangerous substances," says Dr. Greenspan. "It's a vicious cycle."


All this is enough to make you want to clothe your kids in hazmat overalls. But Dr. Landrigan emphasizes that parents do have power:



"You need to remember that there are things you can do to limit exposure and that healthy factors can counterbalance the harm of chemicals - most important, a loving, supportive family environment and a nutritious diet."



He and other experts say taking these steps can make a difference:

Eat Organic. The majority of kids' pesticide exposure comes through food. When researchers at Harvard University and the University of Washing- ton substituted organic food for children's typical diets for five days, they found the metabolites for organophosphate pesticides disappeared from their urine and remained undetectable until they started eating their usual diets again. The next best thing to going organic: choosing fruits and vegetables with lower pesticide residues (find a list of the "Dirty Dozen" and "Clean 15" here) and scrub them with water to further reduce surface chemicals.


Drink filtered water. Read your water district's Consumer Confidence Report to see the types and levels of contaminants in your drinking water, recommends Johanna Congleton, Ph.D., a senior scientist with the Environmental Working Group. "If you're concerned about what you see, there are lots of filter options that range in efficacy and price."


Pass up foods that come from antibiotic treated animals. "Antibiotics appear to act like hormone-disrupting chemicals," says Deardorff.


Cut back on canned foods. Unless the can is labeled BPA-free, it's most likely lined with BPA-containing resin.


Avoid using plastic containers. Some research has shown that BPA can seep into food or beverages from containers that contain the chemical, especially when heated.


Vacuum and dust with a damp rag or sponge every two or three days. "Household dust is a major vehicle for kids' chemical exposures," says Julie Herbstman, Ph.D., assistant professor of environmental health sciences at Columbia University's Mailman School of Public Health.


Avoid burning candles and fires. "Things you burn may contain potentially harmful chemicals," says Herbstman, who also advises buying a HEPA filter, which may cut down on indoor air pollution.


Use natural pest killing products. "Conventional ones contain dangerous chemicals that you don't want kids exposed to," says Dr. Landrigan.


Trying to get pregnant, take folic acid. "We found that women who took the supplement three months before pregnancy or in the first month after conception were at reduced risk of having a child with autism - and we're now examining whether it reduces the impact of in vitro pesticide exposure on autism risk," says Hertz-Picciotto of the UC-Davis MIND Institute. More good news: Researchers from the Childhood Leukemia International Consortium recently reported that the kids of women who took folic acid before or during pregnancy were less likely to get leukemia.



Why are children so vulnerable

Pound for pound, kids are at increased risk from chemical exposures because their systems are still developing. Tissues with rapidly dividing cells, like the blood and lungs, are especially vulnerable to carcinogens in the first nine months after birth, when cell division is most accelerated, according to the Agency for Toxic Substances & Disease Registry. "Every time a cell divides there's an opportunity for mutations to occur," says Julie Herbstman, Ph.D., assistant professor of environmental health sciences at Columbia University's Mailman School of Public Health. Other reasons kids are at greater risk:



Their size. Children breathe more air, drink more water, and eat more food per pound of body weight than adults do.


Their skin. The ratio of babies' skin surface to their body weight is about three times greater than that of an adult, which means that even a seemingly small dollop of lotion or sunscreen applied to their skin is a fairly large "dose." Babies' skin also more readily absorbs chemicals during the first two months, before the thick keratin layer that protects adult skin from toxins starts to form.


Their breathing. Newborns take an average of about 45 breaths per minute, which makes their developing respiratory systems more vulnerable to airborne pollutants. Two- year-olds take between 24 and 40, and teens settle into an adult rate of about 12 to 14 breaths per minute.


Their Metabolism. Newborns have far lower levels of the enzyme PON1, which affects the body's ability to detoxify and eliminate chemicals. Later, during adolescence, chromosomal changes decrease the rate at which kids metabolize chemical substances. Also, during puberty, there's rapid growth, division, and differentiation among thousands of cells that can make kids especially sensitive to chemicals that mimic hormones.


Their diet. The average child drinks far more apple juice and grape juice and eats more grapes, bananas, carrots, and other fruits and vegetables than adults, so their exposure to chemicals that could be on produce is greater.


Their playing field. Children crawl and play on carpets containing dust that may harbor chemicals and on grass that might have been sprayed with pesticides.


Their Behavior. Kids are curious, and they often explore their environments by putting things in their mouths.



How you can take action

In 1976, when Congress passed the Toxic Substances Control Act, there were 62,000 substances in use in the U.S. - all of which were presumed to be safe, without scrutiny or testing of any kind. Since then, another 20,000 chemicals have come on the market, and few of those have been tested. "It's not like the FDA, which requires that drug companies test their products before they get approval," says Philip Landrigan, M.D. "With consumer chemicals, we start using them and see if problems arise." But various legislators and organizations, including the Environmental Working Group, the Environmental Defense Fund, and Safer Chemicals, Healthy Families, are trying to change that. One way to get involved: Join the EWG's email campaign to members of Congress. Find out how you can take action here.


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