Alfred Woody's Kewl Blog [ 椼森 ]

Wednesday, January 20, 2010

Do you go to a Goldman Sachs ATM machine or your local Goldman Sachs branch?

Gerald Celente joins Eric King on King World News on January 9, 2010 to discuss a variety of topics, including Goldman Sachs and other financial institutions who have engaged in the largest pillaging of a countries resources in the history of the world.

“It’s the biggest bank robbery in American history, but the banks are doing the robbing. I mean, just go through the facts. What, overnight in 2008 they turned Goldman Sachs, that venerable investment bank - how about casinos that gambled and lost - into a bank holding company. Why? Well, so that they could borrow at ridiculously low rates and they could be given approximately $10 billion dollars to put them on the road to gambling.

And then what happened? It’s not that they’re a bank. I mean, do you go to a Goldman Sachs ATM machine? Do you have Goldman Sachs checks? Do you go to your Goldman Sachs branch?

It’s highway robbery right in front of us. They’re nothing more than a hedge fund and they’re making money off the sweat of the American people. So, when we’re looking at this time and time again, we’re just looking at all this printed money going absolutely nowhere other than into the pockets of a few.”

The amazing thing about this scam is that it happened in broad daylight, the American people knew it was happening, both the Bush and Obama administrations enabled it, Congress supported it, and The Fed clicked the mouse to make the transfer.

Listen to the entire King World News Interview with Gerald Celente Below:

Hat tip Rick Blaine for the interview link

Author: Mac Slavo
Date: January 19th, 2010
Visit the Author's Website: http://www.SHTFplan.com/

More and More States on Budget Brink

California is hurtling into the budgetary abyss — and it’s not alone.

Across the nation, state tax collections in the first three quarters of 2009 posted their steepest decline in at least 46 years, according to a report this month from the public policy research arm of the State University of New York.

At least 30 states raised taxes in their most recently completed fiscal year — which ended in most cases in mid-2009. Even more cut services. All told, states raised $117 billion to fill last year’s budget gaps, the Pew Center on the States estimates.

Yet despite all those new taxes and deep cutbacks, pressure on state finances continues to build. Economists warn that without a new round of federal stimulus spending, states could face another round of layoffs that could kneecap an already shaky economic recovery.

“We could see a real ripple effect if the states don’t take a balanced approach” by balancing cutbacks with tax raises and other new revenue, said Jon Shure, deputy director of the state fiscal project at the Center on Budget and Policy Priorities in Washington.

State and local governments have cut 132,000 jobs since August 2008, the center says. Fiscal problems appear most acute in California, whose general obligation bonds were downgraded this week after Gov. Arnold Schwarzenegger declared a fiscal emergency.

The state has already said it will increase tuition by a third in the University of California system, among other cash-raising moves. At one point, it was projected to spend nearly 50% more than it stands to garner in revenue in this fiscal year, by one count. California has asked for federal help and warned it could run out of cash in March.

And California’s not the only state facing an almost unfathomable shortfall. Like California, Arizona and Illinois face budget gaps above 40% of projected general fund spending, according to Pew data.

Arizona put its state office buildings on sale this week in a bid to raise $700 million. The University of Illinois furloughed some workers this week after the state failed to come up with $436 million in expected funds. Budget officers in those two states describe their outlooks for fiscal 2010 as “dire,” according to a National Conference of State Legislatures report.

Alaska, Nevada, New Jersey and New York face gaps of at least 30% of their planned general fund spending by the end of this fiscal year. A dozen more states face a fiscal 2010 budget gap of between 20% and 29%.

“California is playing out on the biggest stage, but there are states around the nation facing problems of equal or greater magnitude,” said Corina Eckl, who runs the fiscal affairs program at the National Conference of State Legislatures in Denver. “We are seeing some frightening situations.”

Big shortfalls scare legislators because states by law must balance their budgets every year. After revenue and spending rose steadily in the middle of this decade, bolstered by a housing bubble that boosted employment and fed a stream of property transfer fees, state funding went into freefall when the recession started at the end of 2007.

Given the depth of the recession, few states are expecting an uptick in employment or consumer spending that would translate into bigger tax collections anytime soon. Nine states are forecasting they won’t return to their peak revenue years of 2007 or 2008 until at least 2014.

Adding to the pressure, job losses spur demand for the services states devote the lion’s share of their budgets to: education and Medicaid, which provides healthcare for low-income people.

“The needs grow as states’ ability to meet those needs declines,” said economist Andrew Reschovsky, a professor at the University of Wisconsin in Madison.

So far, the worst cuts have been avoided with the help of billions of dollars of federal stimulus money — including $135 billion for education and Medicaid.

But the flow of those funds will start to slow down in the second half of 2010 and will stop altogether at year-end, unless Congress appropriates more money for state assistance.

States have used $53.6 billion in Medicaid funding through Jan. 8, according to government data. If Congress doesn’t extend the Medicaid funding beyond the end of the year, “states are looking at a stimulus cliff,” said Robert B. Ward, deputy director of the Rockefeller Institute of Government at the State University of New York at Albany.

The only way to make up those shortfalls is through more new taxes, cutbacks and borrowings.

Local and state governments have had little problem borrowing in the bond market, where analysts expect issuance of $400 billion or more this year. California has had to pay higher-than-average interest rates to sell its debt, but there seems to be little fear of a default, given the state’s giant economy and its relatively small $64 billion worth of general obligation bonds outstanding.

But borrowing is no help in fixing so-called structural deficits, in which spending exceeds revenue over a prolonged stretch. And so far there has been little sign legislators are willing to make the obligatory tough choices, particularly issuing more or higher taxes.

Many of the so-called fixes for current state deficits are mere Band-Aids that push the problem forward rather than address it, observers said.

“It’s surprising that political leaders don’t seem to be taking seriously the magnitude of the problems,” said Reschovsky. “You would hope it wouldn’t come to this, but it might take schools closing and programs being eliminated to create a sense of urgency.”

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Obama Approves $30 Billion in Military Aid to Israel Over Next Decade

http://america-hijacked.com/2009/12/19/obama-approves-30-billion-in-military-aid-to-israel-over-next-decade/

U.S. To Store $800 Mil in Emergency Gear in Israel – Forward.com

http://america-hijacked.com/2010/01/11/u-s-to-store-800-mil-in-emergency-gear-in-israel-%e2%80%93-forward-com/

Citi loses 7.6 billion dollar loss in fourth quarter

Battered financial giant Citigroup said Tuesday it suffered a net loss of 7.6 billion dollars in the fourth quarter of 2009, resulting in a full year loss of 1.6 billion dollars.

Citigroup said its fourth quarter revenues were 5.4 billion dollars, or 15.5 billion dollars excluding a repayment of a government bailout loan, down from 20.4 billion dollars in the prior quarter.

The quarterly result amounted to a loss of 33 cents a share, in line with forecast by Wall Street analysts.

Citigroup, which is the last of the major money-center banks operating in the shadow of a US government bailout, last month repaid some 20 billion dollars to the authorities.

It repurchased preferred shares from a US Treasury investment in the company through the Troubled Asset Relief Program (TARP), a massive 700 billion dollar effort to stabilize the financial system. But the government still holds a major stake in Citi from having converted some of its investment to common shares.

Citigroup said provision for loan losses in the fourth quarter was 8.2 billion dollars, down 36 percent from the prior year and 10 percent from the previous quarter.

Chief executive Vikram Pandit said a series of steps were taken to get the "house in order," citing improved capital strength, reduction in company size and staff, refocused business strategy and overhauling risk management that cut costs by over 13 billion dollars annually.

"As we enter 2010, we are strongly capitalized, significantly more efficient, and are executing on a clear strategy that is focused on clients," he said.

Pandit said that in the near term, the company would continue to focus on "sustainable profitability and growth, and supporting the global economic recovery."

John Gerspach, Citigroup's chief financial officer, said although the company remained cautious and continued to monitor the future impacts of its "loss mitigation" efforts, there were "indications that credit may be stabilizing or improving, particularly in Asia and Latin America."

Last week, JPMorgan Chase opened the US earnings season for banks, quadrupling its fourth quarter net earnings to 3.27 billion dollars and doubling its profits for the full year to 11.7 billion dollars.

Its chief executive, Jamie Dimon, said he was "gratified" by the results but lamented consumer credit costs remained high.

To Save Haiti - Fire Gen 'Brownie' Keen, Start Air Drops, Cancel The Debt, Kick Out The IMF

WASHINGTON, DC -- Just over five days or 120 hours after a major earthquake hit the area of Port-au-Prince, Haiti, it is increasingly clear that the US approach to organizing the delivery of emergency assistance and supplies is so ineffective that the general directing the distribution of emergency aid needs to be fired without further delay. The catastrophic blunder involved is the decision by the US military in the person of Gen. Ken Keen to insist on routing all external aid through a single substandard, inadequate, and partially destroyed landing field, the Toussaint L'Ouverture airport.

This airport has a single runway, and room to park only about half a dozen medium to long range aircraft. The result is that once six aircraft are parked in the unloading area, all incoming traffic must be waved off until one of the six planes has taken off again, as a colonel on the ground explained in a press conference broadcast on C-SPAN radio here this afternoon. The control tower, radar, and other facilities have been destroyed by the earthquake. Even once cargo has been offloaded, it has been tending to build up at the airport because the streets and roads leading from the airport towards the main population concentrations are blocked by collapsed buildings and other debris. The result is an agonizing slowness in delivering vital supplies upon which the immediate survival of up to 3 million Haitians now depends.

THE SINGLE AIRPORT AS BOTTLENECK

This single airport approach fulfills the textbook definitions of a logistical bottleneck and logistical nightmare. It was a fatal mistake to ever decide to make this single runway the only supply line for the stricken populations around the Haitian capital. The officer who is said to be running the US logistical effort on the ground is Lieutenant General P.K. "Ken" Keen, second in command of the US Southern Command. Interviewed today by Brit Hume on Fox News Sunday, General Keen stated: " Well, we had a very good day yesterday, Brit. Paratroopers from the 82nd Airborne division who have only arrived within the last day or two delivered over 70,000 bottles of water and 130,000 rations." General Keane was referring to Saturday, January 16, three days and 96 hours after the earthquake.

This statement is comparable to the recent remark of Homeland Security Secretary Napolitano to the effect that, although an airplane had almost been blown up aloft, "The system worked." General Keen, like Secretary Napolitano, appears incapable of recognizing defeat and failure when they are staring him in the face, and human lives have already been lost as a result of his incompetence. Gen. Keen is well on his way to becoming the new Brownie of the Haitian crisis, surpassing in ineptitude the infamous Bush FEMA director who received the accolade of "heckuva job, Brownie" at the height of the 2005 debacle.

To put General Keen's comment into perspective, let us assume for the sake of argument that 3 million earthquake victims in the area of the Haitian capital are now more or less totally dependent on foreign deliveries for their near-term survival. To be reasonably fed under crisis conditions, 3 million people would require 9 million meals per day. They would also need something like 9 million liters of water. General Keen boasts of having been able to deliver a tiny fraction of the required amount. It is time for General Keen to be cashiered. His approach to delivering aid is excessively militarized, and results in an oversized population of US forces who consume supplies and, given the excruciating slowness of a deliveries, are likely to become targets of popular rage. Is this what General Keen wants? Is time for him to go.

To be fair General Keen, it is also clear that his background has not suited him for his current critical responsibility. General Keen comes from the Special Forces and the Joint Special Operations Command. General Keen's background, in short, is that of an airborne commando. This is the area of military life were logistics plays the smallest role. What is obviously required for an emergency like the one now unfolding in Haiti is an officer who is specialized in logistics, in what the Army has traditionally called G-4, and preferably a graduate of the Army Quartermaster School.

An army travels on its stomach, and the rescue operation even more so, so it is time for the Special Forces "global war on terror" types to clear out and be replaced by officers who know something about supply. Logistics experts are never the most glamorous figures, and especially not now when the enemy is assumed to be the chimera known as "Al Qaeda." Both the Iraq and Afghanistan deployments of the US forces display a fatal incompetence of logistical planning which could still lead to terrible consequences for the occupiers of both countries. Now in Haiti, the logistical failure moves to center stage.

General Keen seems to be determined to deliver vital aid to the Haitian population using an eye dropper. Is he trying to promote an insurrection for political purposes? When Japan was gripped by hunger in 1945, General MacArthur wired Washington "Give me bread or give me bullets," and quickly got bread. General Keen seems more interested in bullets, and one wonders why. Given General Keane's extensive record in Latin America, one wonders whether he has ever been associated with the infamous US Army School of the Americas in Fort Benning Georgia, where military officers are routinely taught that the populations of Latin America are the enemy, with Haiti being no exception.

General Keen is lucky that he is not fighting a real enemy on Haiti, because if he were the enemy commander might find a way to destroy the single airport which is now the totality of the US supply line, leaving General Keen's forces cut off and doomed. General Keane seems to have forgotten the one thing he should have remembered from his special forces training, which is that when units like his actually go into action, they are supported by air drops.

IMMEDIATE WIDESPREAD AIR DROPS OF CRITICAL SUPPLIES THE KEY



Effective generals know they need to rush to the scene of operations for an indispensable coup d'oeil well before their leading units arrive. Think of General MacArthur sizing up the situation in Korea during the first desperate hours in July of 1950. Such reconnoitering, or even the memory of a previous visit, would have shown that relying on the airport alone was a recipe for disaster. Instead, the US should have emphasized speedy air drops by parachute of pallets containing large quantities of food, water, medical supplies, blankets, fuel, and tents, plus small electrical generators and small tractors and earth moving equipment. The drop zones for these deliveries should have been scouted and cleared of any civilians by small numbers of airborne Rangers -- parachute infantry -- coming in at dawn last Wednesday, about twelve hours after the quake. Under the current Global Strike strategic doctrine, the US is supposed to be able to destroy any point in the world within 24 hours. Surely they could have dropped airborne scouts into the Haitian capital, which is not far from Guantánamo and from Florida, within 12 hours after the earthquake.

The goal of this operation would have been to saturate the environment of Haitian capital with abundant supplies of food, water, medical necessities, and related equipment. Security need not have absorbed inordinate manpower at that point. The stricken population needed to be invited to help themselves, carrying off as much as they could handle in any reasonable proportion. They needed to be told that air drops would henceforth be continuous, and that they would not want for anything. Looting and stealing would have been obviated by convincing the people of the simple fact that they were futile and pointless, since food, water, and other supplies were abundant everywhere. With a little imagination, a dozen drop zones could have been set up in parks, in athletic stadiums, on beaches, and in the fields immediately outside the city. The inclusion of large quantities of tents of different sizes would have given the stricken population something constructive to do to help themselves. Instead of gunfights over scarce food and water, instead of machetes and street barricades of corpses, instead of riots, the Haitians could have peacefully busied themselves in constructing tent cities for the short to medium run.

The best aircraft for these precision air drops in the first wave on Wednesday, Thursday, and Friday in particular, would have been Lockheed Hercules C-130 air transports. The Hercules C-130 is also capable of landing on a bumpy field in little more than 1,000 feet, assuming that it will take off empty. C-130s could have landed in fields immediately outside the city that had just been cleared of any civilians by a few members of the 82nd or 101st airborne divisions, and could have rolled large pallets of emergency goods out of their cargo bay directly onto the ground. Civilians could have picked up what they needed. Electrical generators mounted on trucks could have driven from these landing strips directly to area hospitals, accompanied by truck-mounted water purification equipment.

If the joint USTRANSCOM (the military airlift command) and the United States Air Force Air Mobility Command do not have enough C-130s, then these can be supplemented by identical aircraft brought in from the European NATO states and from Japan. Major air forces all over the world fly the C-130, as the Lockheed scandal some years ago reminds us.

Another aircraft which could prove valuable is ironically the the much-maligned V-22 Osprey, a propeller aircraft which can take off and land vertically. If an Osprey can carry 20 infantry, it should also be able to carry a ton or two of supplies, and it can land on fields that are too small even for a C-130. With the help of of a small fleet of Ospreys, distribution points could have been established, in virtually every neighborhood of the Haitian capital, saving many lives and calming the entire situation.

By channeling the vast majority of routine deliveries of food, water, medical supplies, blankets, tents, and other basics directly into Port-au-Prince and the other cities hit by the earthquake, the single runway of the single airport could have been reserved for high value deliveries like the French field hospital which was turned away in a blunder which has deservedly become an international scandal and humiliation for the United States. The airport would thus have been available for special cargoes and above all for doctors, nurses, military field hospitals, heavy water purification and earth-moving equipment, aid technicians, and emergency workers with sniffer dogs, although some of these could also arrive inland through the Ospreys. Traffic coming from international donors would have a much better chance of being expedited through the airport if it did not have to compete for space with large bulk deliveries of food and water.

If Wednesday January 13 was D-Day, when the effort should have got going, by D+2 or D+3, US aircraft carriers, helicopter carriers, and other warships proceeding at flank speed would have arrived in Haitian waters, making it possible to begin large-scale deliveries of bulk emergency supplies by helicopter into even less accessible corners of the stricken region. This would be the hour of the Chinooks and especially the Soviet-made Halos capable of carrying a 20-ton payload, which the US has some experience in renting. It appears that the US Coast Guard, which gave such a good account of itself in the midst of the Katrina disaster, was the one effective organization which began helicopter deliveries very early in the crisis, without that obsessive concern for force protection which seems to have been the main preoccupation of the Army Special Forces-JSOC "GWOT" types.

If the port remained inoperable by D+2 or D+3, it would be time to identify suitable beaches for the offloading of supplies by amphibious landing craft operating from vessels offshore. Otherwise, a makeshift Mulberry harbor could be constructed for offloading freighters.

GET THE IMF OUT OF HAITI ONCE AND FOR ALL

US television commentators and politicians are fond of asking why Haiti is so poor. Some of them are embracing a crackpot theory of the late Samuel Huntington according to which Haiti has a dysfunctional culture, and the poverty there is the fault of the people. We beg to differ. The United States has occupied Haiti for several decades at different times and has a special responsibility for the welfare of this country. The most acute problem of Haiti right now is represented by the fact that especially since 1994, Haiti has been crushed under the iron heel of the International Monetary Fund and World Bank by virtue of the ferocious conditionalities which these international lending institutions have imposed.

These conditionalities include the usual dismal catalogue of IMF shock therapy: deregulation, privatization, union busting, the destruction of the state sector, the wrecking of any social safety net, the abolition of labor legislation, downward pressure on the standard of living, free trade, tax advantages for predatory foreign investors, and the looting of any pension funds or unemployment insurance -- the litany of reactionary "free market" barbarism in all of its inhuman fury.

Americans may be interested to know that the poorest country in the hemisphere carries a debt burden in the neighborhood of 1.5 billion US dollars, most of it owed to the Inter-American Development Bank, itself a creature of the United States. As of September 2009, this desperately poor country was struggling to meet the benchmarks imposed by the IMF and World Bank to qualify for their cruel and deceptive "Heavily Indebted Poor Countries" program, which promises minimal debt forgiveness in exchange for an even more acute humiliation of national sovereignty and an even more savage and draconian application of conditionalities.

CANCEL HAITI'S $1.5 BILLION FOREIGN DEBT

If Obama is capable of any human compassion whatsoever, he will interrupt his nonstop blathering to declare a unilateral, total, and irrevocable cancellation of all financial debt owed by Haiti to any institutions controlled or influenced by the United States. All countries of the London Club and Paris Club should be informed that the United States expects them to imitate this immediate and unconditional debt cancellation in favor of Haiti. Haiti will undoubtedly default anyway, so they would simply be bowing to the inevitable. All these countries should be informed in unmistakable terms that failure to cancel the Haitian external financial debt will be considered an unfriendly act by the United States. The State Department knows very well how to do this -- they strong-armed most of the world into canceling the debts owed by Iraq after Bush's lunatic invasion of that country in 2003.

The corollary of the debt cancellation is an announcement that all IMF and World Bank conditionalities, appropriate technology limitations, and so forth are lifted and will never be reimposed. Officials of the International Monetary Fund, the World Bank, the Inter-American Development Bank, and other organs of the supernational bankers' faction should be treated as looters and driven out of Haiti.

Haiti requires a Marshall Plan in the form of large-scale foreign deliveries of modern capital goods for economic modernization -- not of cash, given the desperate circumstances prevail there. Agriculture, fisheries, and related activities need capital investments to develop. Haiti needs to urgently upgrade its labor force to allow the production of high-value exports in industrial settings. Infrastructure needs to be developed for health services, education, energy production, transportation, and sanitation. The number of new housing units that will need to be built runs into the millions. Idle Detroit's factories could be quickly retooled to produce modular housing for Haiti, and tens of thousands of unemployed auto workers rehired as part of this effort. The United States should participate in the reconstruction of Haiti by forcing the Federal Reserve to free up an initial tranche of $100 billion in the form of 0% Federal credit for US exports to Haiti via the US Export-Import Bank. The $100 billion line of credit already promised by Obama to the IMF should be commandeered and diverted to Haiti for this purpose. Nations with industrial capacity should be strongly encouraged to join in this effort on the basis of parity and equality.

During the 1940s, logistics was known to be the decisive strong suit of the US military. It was logistical depth which allowed such achievements as the Normandy landings and the Berlin airlift of 1948-1949. (West Berlin, it should be noted, had three airports which functioned throughout that crisis, so airdrops were not necessary in that case.) Since then, US military logistics has declined, as van Creveld and others have pointed out. All of the protagonists of those great 1940s operations are long gone and the logistical apparatus of the US military has atrophied to the point we see today. The rebuilding of the logistical capacity of the US military to be able to deal effectively with emergencies like the one in Haiti today must proceed pari passu with urgent efforts to rebuild the infrastructure and production base of the entire US economy in the present context of world economic depression.