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Fiji: “Draconian Prosecution” of press

FijiBy John Liebhardt

For the second time this month, Fiji’s military government has threatened to send a newspaper editor and its publisher to prison for publishing a letter to the editor alleged to be in contempt of court.

In mid-October, the Fiji Times and Fiji Daily Post printed a letter from a certain Vili Navukitu of Queensland, Australia complaining about a recent high court ruling that legitimized the actions of the country’s president in dissolving the Parliament, and the elected government of Laisenia Qarase, immediately following the December 2006 coup that brought into power Commodore Frank Bainamairama.

The letter (which has been reprinted in this post) pointed out that Bainimarama had undue influence on the jurors because he had previously removed the court’s chief justice.

After the letter was published, Fiji’s Attorney General Aiyaz Sayed-Khaiyum accused the Fiji Times of being in contempt according to Fiji’s laws because it casted doubts on the integrity and independence of the courts. The Fiji Times printed a front-page apology admitting contempt and offering to pay all court costs.

The Attorney General, unimpressed with the apology, has asked the court to jail the editor and publisher of the paper and apply stiff fines to the paper. The case is in recess until December.  The editor and publisher of the Fiji Daily Post, where the letter also appeared, could meet the same fate, the Attorney General declared this week. Both newspapers have been asked to provide full details of the letter writer.

The scandal comes at the heels of the announcement that press freedom group Reporters Without Borders ranked Fiji 79th for press freedom out of 173 countries, a large leap from the previous year, where it was 107.

Fiji’s bloggers have largely expressed outrage at the case against the two newspapers.

Source: Global Voices Online

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Here’s part of the Big Chance we won last week | Ashland Daily Tidings

obamasuperheroBy Jeff Golden

Author’s Note: Obama’s reminded us every way he can that he’s not Superman. Hearing the bliss of the last week, I’m not sure we’ve fully heard him. He aptly pointed out last week that what we’ve won is not change, but the chance to create change.

Last week I used this space to write to Joe the Plumber.  I asked if he’d be willing to cool his jets before jumping on the campaign to make life as miserable as possible for the new administration.

I asked him to “try on the possibility that Barack Obama is not an agent of evil.  That his plan to raise the marginal tax rate — the rate paid on just the highest increment of income — on the wealthiest Americans from 35% back up to 39%, where it was ten years ago and less than the top rate in almost every other democracy, doesn’t qualify as raging socialism or class warfare.  That his plan to withdraw gradually from Iraq in deliberate cooperation with Iraq’s neighbors may not be surrendering to terrorism or trashing our national security.  That a full-on plan to develop green energy won’t send you and your family into a cold cave to eat roots and berries.  That we’ll have to step outside our comfort zones — yours, mine, everyone’s — to deal effectively with what’s coming.”

I haven’t heard back from him yet.  But think how busy the poor guy’s been.

One reader didn’t think it’s realistic to ask Joe to give any slack when he’s apparently not getting any in return:  Obama is off to a bad start in reaching out to conservatives, or anyone who thinks he should not have been elected. 1. Choosing homeboy pitbull armtwister Emmanuel [sic] as CoS (a man who said “F**k Republicans” on the record); (2) not calling on a Fox News reporter at his presser…  (3) evading a question on taxes, despite changed economic realities since Aug; (4) dissing Nancy Reagan.

jeffgoldenWhich just shows how much is in the eye of the beholder: people I know see the selection of Rahm Emanuel and other early Obama moves as worrisome steps towards Clintonian pragmatism that leans more right than left. continued

Source: Ashland Daily Tidings

Jeff Golden is the author of As If We Were Grownups, Forest Blood and the new novel Unafraid (with excerpts at www.unafraidthebook.com)

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Some Advice on Forging a Common Way Ahead | Commonway Institute

By Sharif Abdullah

MEMORANDUM
TO: BARACK OBAMA
FR: SHARIF ABDULLAH
DT: TODAY
RE: SOME ADVICE ON FORGING A COMMON WAY AHEAD

Yes, congratulations, you made history, yada, yada, yada.  Not to diminish your amazing accomplishment, but since you’ve heard it all so many times by now, I won’t dwell on it (although, if you and I had a few hours, I COULD!)

No, I would rather not take up your time on that.  I have a few pieces of advice for you.  If I had five minutes of your time, the following is what I would say to you directly.

But first, who am I to be offering you advice?  I have been exploring our need for a value-driven, inclusive and sustainable society for decades, including as Founder and Executive Director of Commonway Institute.  The title to my second book sums up my philosophy and my life goal: “Creating a World That Works for All”.  I offer my counsel to you.

ADVICE #1:  REMEMBER WHO YOU ARE

This part goes without saying: while you are in fact the first African-American President (Elect) of the US, that is an IDENTITY, it is not the core essence of who you are.  One day, even being President will be a past accomplishment.  You, however, will still be you.

You are the first President (Elect) of the 21st Century – I expect you to act like it. (We obviously aren’t going to count the last 8 years.  We are now seeing the close of the last Presidency of the 19th Century). As the first 21st Century President, you will set the model for all of the other Presidents to follow. Aim high.

Bill Clinton was a very admirable bridge between the 20th and 21st Centuries.  There are many advisors around you who would like to copy those times.  Don’t listen to them.  Your arc must be higher.

ADVICE #2:  BARACK OBAMA – CATALYST IN CHIEF

In our days of fear and ignorance, many Americans needed a “Commander in Chief”, the father figure to command and control their lives.  Now, we have just elected you, our first “Catalyst in Chief”.  We don’t need you to “lead” or “command”.  We know that the federal bureaucracy is virtually ungovernable and incomprehensible.  (Of course, we do expect you to do your job and govern as best as a human being can.)

We most need you to display the skills that you demonstrated so well during the primaries and election: the ability to inspire, to engage and to motivate an entire movement of people to act.

It is indeed comforting that your heroes are similar to mine.  I too am inspired by the words and deeds of Abraham Lincoln. He presided over the US when it underwent its most painful transition (to date).  Now seen as one of our greatest Presidents, he was HATED by half of the country – the half that could not face the future, the half that could not live up to the vision laid down by the Founders in the Declaration of Independence.

I remind you of Lincoln so that you can remember to inspire – even though many of our fellow citizens would rather revile you than listen to you. Right now, they CAN’T listen to you – they can’t get past the color of your skin.  However, they too will change.  They too are caught on the arc of history.  They will forget their hate – it simply is not sustainable.  We can wait them out – time is on our side.

ADVICE #3:  DON’T LET THE WEASELS GET YOU DOWN

You are a man, a model and a symbol.  You symbolize and personify our quest for a new vision for our society, a vision that is hopeful, practical, inclusive and sustainable.

You need advisors who hold all of the above qualities, who can think outside the box.

I know that you have many “real-world” political advisors surrounding you – they are needed, they are necessary and you could not effectively govern without them.  But, don’t let them be your sole source of advice – we didn’t vote for you so that you could fill the White House with the old political crowd (Democrats or Republicans).

You need advisors who can think outside the box (who actually don’t even recognize that there IS a box!)  Balance your team with visionaries, ones with some dirt under their fingernails from doing real work in the world.  There is a real difference between a visionary with achievements versus a visionary with just dreams.  You need doers, not just talkers.

ADVICE #4:  YOU ARE NOT A “CENTRIST”

Neither the “Right” nor the “Left” have the vision for an America that works for all.  Both the Left and the Right have flawed, myopic, partial viewpoints. But, paradoxically, both the Left and the Right hold key elements to the future of this country; they hold parts of the solution.  Neither side should be dismissed out of hand.

Your job is to get the dinosaurs to play well together.  Only together can those Left-Right viewpoints be transcended, harmonized, and resolved into one greater image.

You know that the traditional “Democratic” and “Republican” parties are outmoded and out of step with 21st Century realities.  You know that your campaign for the Presidency has ignited a passion for politics (with the small “p”) that the major parties cannot understand, let alone harness.  You know that you can harness this energy.

Your job is not to sit between these two warring camps.  Your job is to sit ABOVE them.  You are not a “centrist”.  You are a “trans-centrist”.  Let’s elevate the conversations beyond the uninspiring rhetoric that has been such a turn-off for many in the electorate.  (I quote in my book a line from the movie “Slackers”: “Withdrawing in disgust is not the same thing as apathy”.)  Your candidacy hit the “on” switch for tens of millions of us.  And, you can help keep us turned on.

Of course, you will have to drag the mainstream media, kicking and screaming, into this new viewpoint. They still can’t comprehend what your victory means for America.  Yesterday, CNN was reporting on how “black” churches were celebrating your election, completely missing the fact that there were at least a few “white” churches that were just as celebratory.  They can’t see it.  You can. WE can.  And the media will, too… eventually.

ADVICE #5:  YOU ARE THE LEADER OF A MOVEMENT

As you correctly stated, your job as President doesn’t start until mid-January.  (Do not deny Bush the opportunity to further lower his poll ratings or to increase his historic position as the worst president in modern history.  It’s his karma.)

However, you are not just “President” — you are also the leader of a movement.  That job started decades, perhaps centuries, ago – it has just reached a powerful nexus point.

I started in this movement to save our human family and our planet 45 years ago (yes, you were 2 years old). The movement will continue when both of us are dust.  This movement is the legacy that we leave to your daughters and my grandsons.

Unless there is a transformation in how we interact with each other, with our neighbors, with the Earth and with the Divine, those young ones have no future.  Once we make these transformations, the future for our children and grandchildren is limitless.

Your role in the movement is obvious: KEEP IT MOVING.  The politicos will want the people to sit down, shut up, and “leave it to the pros”. RESIST THIS.  The movement for an inclusive, sustainable and loving society will not wait.  Leading this movement is the single most important thing that you can do as President. It far exceeds any piece of legislation, any Executive Order, any policy initiative of your Administration.

Although you take the Oath of Office in January, you can stimulate and catalyze this movement RIGHT NOW. Don’t wait for the Inauguration – put us to work.

ADVICE # 6:  TAKE THE FIRST STEPS

What you can do, right now, is catalyze a community, regional and national dialog on the fundamental issues facing us as we enter the 21st Century.  (Given your present world stature, this dialog could be global.)  Ask us: what can we do, on the local level, to address our social, political, economic, ecological and spiritual mega-crises?

This dialog would NOT be: “What must government do for us?”  (You are about to find out how little government can actually do!)  But, by bringing the conversation to the local level, you can catalyze building the most powerful people’s movement America (and the world) has yet seen.

So, what are these first steps?

  1. Dialogs on Food, Water and Energy Security.  Every community should know where its food, water and energy come from.  Every community should launch discussions on how they can achieve sustainability on the local and regional levels.  From these dialogs, each community should develop plans for local sustainability for food, water and energy.
  2. Dialogs on the Future of Economics.  All of our media-driven discussions on our economics have been focused on fear and insecurity.  Most of our “rescue” attempts are aimed at reviving a system based in waste and greed. It’s time to re-define economics, to focus on hope, vision, and the realities human beings in the 21st Century.
  3. In my work with Sarvodaya in Sri Lanka, we are experimenting with something I’m calling “relational economics”.  The economics of people who are in actual relationship with each other.  Economics not controlled by individuals, corporations or by the State.  Economics at the community level.  (A side piece of advice for you: to stimulate a community-based relational economics, your stimulus packages should be based on community, not on individuals or governments.)
  4. Dialogs on Healing.  How do we heal our society?  After years spent in a wrong-headed and meaningless war, the men and women in our military are hurt, bruised, confused, angry and sick.  After decades of divisiveness, our politics is fractured and visionless.  Our legacy of slavery and American-style Apartheid continues to haunt us.  The pending economic collapse hangs over our head like a crushing weight.  We must atone for the pain and damage we have caused the Earth. In the face of this, healing is necessary.  We all share the pain and we all can, through the exercise of compassion, share in the healing.  Asking us to engage in healing dialogs can serve as a start to this long-term process.
  5. Dialogs on Our Vision for Our Society.  According to Thomas Jefferson, our present Constitution was meant to last only one generation.  He believed that every generation should re-write the Constitution.

We are long overdue.

We obviously cannot start with a Constitutional Convention – that would be suicidal.  Most Americans have spent so much time as “consumers” instead of “citizens”, we no longer recognize the principles that lie at the foundations of our society.  (This is why President Bush could get away with using the Constitution like toilet paper – most of us didn’t know what was in it to begin with.)  We are going to have to start over again – to teach ourselves to become the intelligent, informed citizenry that Jefferson and the other Founders envisioned.

We can start with an interactive national dialog on “American Vision and Values”.  According to the Bible, “Where there is no vision, the people perish.” (Proverbs 29: 18).  You can catalyze a dialog process with teeth – the people need not perish.

ADVICE #7:   DON’T FORGET TO BREATHE.

I strongly encourage every person who works with me to have a daily meditation practice.  It is the best (perhaps only) way to stay focused on the long haul, to not get caught up in the swirling madness of our times.  It is the best way to stay true to our common mission: to create a world that truly works for all beings.

Peace,
Sharif Abdullah
PS:  Incidentally – if you are interested in my help with any of the above, please do not hesitate to call.

Resources:
Commonway Institute

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Taiwan: Defending Rights to Protest

taiwanBy I-fan Lin

Following David’s article on “The Phantom of Police State” coming back with Chen Yun-lin (陳雲林)’s visit to Taiwan on 3 of Nov, I have collected some visual materials showing the conflict between the protesters and police with brief translation.

Since Nov 3rd, many protesters wearing pro-Taiwan T-shirt or banners or waving the ROC national flag have been harassed by the police, and some of them were wounded. To the extent that people playing Taiwanese songs (Sunrise records, 上揚唱片) were disrupted with force, and a cup of coffee became all too dangerous.

Source: Global Voices Online

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The Day After the Election – USA

POST-ELECTION BLISS

Today we’ve elected a new President of the United States of America and the tides of change are upon us. After listening to Barack Obama’s acceptance speech last night I was touched and inspired by new possibilities. I couldn’t remember ever having such a good feeling after an election in my entire lifetime. I was elated at this victory and hopeful.

I witnessed plentiful tears in the eyes of the people in the crowd cheering him on in Chicago last night. I caught a glimpse of Jesse Jackson and Oprah Winfrey in the crowd with a look of astonishment in their eyes. To have finally elected a black man to the White House was an achievement few of us thought possible in our lifetime. Tonight I was proud to stand here as an American and sing with them, “Yes, we can.”

Obama gave thanks to his supporters and friends. He acknowledged McCain as a great leader who’d sacrificed much for his country. He pledged to “renew this nations promise” and open doors of opportunity. He recognized the youth for their enormous activism and for rejecting the myth of apathy. He told the story of a 106 year old woman from Atlanta who’d cast her ballot and lived through so much change in her lifetime. He said our “destiny is shared with the world”.

VOTING

This is the first time I’ve voted in a Presidential election since 1972. I didn’t pay much attention to 21 months of campaign rhetoric and media commentary. I knew intuitively though this was an important turning event for the country and the world.

I was confident Mr. Obama would get elected if indeed we could have a fair and honest election. Of course I don’t really know if my vote was counted or shredded given the evidence of vote manipulation and fraud. Apparently on this occasion the will of the people prevailed. In my opinion the better of two men got elected.

TRANSFORMATION AND SHIFT

In the long distant past I got disillusioned by the electoral process when McGovern was defeated by Nixon in 1972. Of all the Presidents I liked Jimmy Carter the best. At least he saw the necessity of funding renewable energy projects during his term. I’d seen Clinton speak on the campaign trail in Oregon, but got disillusioned later on after his mishandling of Waco, the Oklahoma City bombing and signing off on the anti-terrorist laws which have been disastrous for our civil liberties (particularly rewriting the habeas corpus laws).

The Bush years were disastrous for the country. No further attention will be given them except to unravel and correct the damage done.

Now this is an opportunity for a shift in consciousness, to move beyond the despair, cynicism and jadedness many of us have felt for decades. Having been a political prisoner incarcerated for advocating accountability in government and sovereignty for all the people, this election was a healing for me – an opportunity to step away from the past and move into the future with a fresh viewpoint while “reality asserts inself.”

ORGANIZING COMMUNITY

As of today I’m willing to turn over a new leaf and re-pledge my efforts, not to the political process or what government can do for us, but what I and this local community can do for yourselves so we are no longer reliant and dependent upon others to run our lives (food, water, energy, shelter, etc.).

In my opinion, regardless of what the federal government does over the next four years from the top-down, it’s still essential each of us takes complete responsibility for building our own self-reliant, local community infrastructure in all areas of our lives. So let’s dig in, get to know each other and work together. That’s what the Ashland Resource Center was designed for!

Edtor’s Note: For continued live and archived news coverage from an independent perspective we’ve embedded “The Real News Network“. This is a international organization worthy of your support.

Source: Ashland Resource Center

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Beyond Win-Lose Political Drama | Transpartisan Alliance

Dear Fellow Concerned American:

Out of the pain and frustrating dysfunction of the current win-lose political drama, a serious constituency is growing for a political system based in well tested win-win principles and practices (similiar to those adopted by large businesses over the past couple decades to reconcile the divergent interests of management, labor, and other “stakeholders.”)  This constituency isn’t waiting for the political professionals to agree — its unlikely they ever will — it’s being driven by citizen leadership.

My faith and commitment to such a difficult to imagine transformation from win-lose to win-win politics is rooted in personal experience.  In 2001 after spending the first half of my life as a strident hater of liberals, I left Republican politics exhausted and disillusioned to reflect in a cabin in the mountains of rural Virginia. At the age of 39 I was in personal crisis.  I had recently lost a risky bid for Congress.  My marriage, business and political reputation had disintegrated.  After struggling with and for political power for almost a decade, fueled by an undercurrent of anger and righteousness, I had hit a wall.

No longer feeling so sure of myself or my worldview, and having been humbled to the point of living well below the poverty line, life delivered an unlikely set of teachers (for someone whose nickname in the military had been “starch”)…a community of hippies.  The small town I had chosen for retreat was a haven for 1960’s and 70’s back-to-the-landers.  Over time, I began to discern and respect the underlying values that motivated their behavior — sharing, interdependence, equality, compassion for the weak, a strong sense justice, freedom, creative self-expression, and a reverence for nature.  I realized these complemented rather than contradicted my conservative values of accountability, order, hard work, security, protection, respect for the individual, and respect for authority.

This simple insight – that liberal and conservative values systems have a natural, complementary relationship – was a breakthrough in my life and has become the basis of my work since.  One set of values is softer, more nurturing, more emotional, and the other set is harder, more responsible, more rational.  When integrated, they mutually support each other in a similar way to the parents of a healthy family.  To be a whole, balanced, well functioning person I need to integrate the values of my mother and father. To be a whole balanced well functioning nation, it seems to me, we need to honor and integrate these values as well.

Based on this premise, the support of a foundation willing to fund “forgiveness,” and the contribution of a diverse group of mediators and systems thinkers from the little known field of “integral politics,” the work of Reuniting America emerged in 2004. Over three years we convened 144 leaders of groups like MoveOn.org, Christian Coalition, Common Cause, Americans for Tax Reform, Code Pink and Heritage Foundation. These “transpartisan leadership retreats” tested the premise that with a safe welcoming environment, clear ground rules, and a transparent process that allowed rather than denied conflict, trust, respect and communication emerge.  We have seen unexpected cooperation among people who thought they were enemies on issues ranging from open government, election integrity, civil liberties, protecting the U.S. Constitution, net neutrality, national service, climate change and dialogue with Iran.

Inspired by this beginning and in an effort to extend this work to the grassroots, in October of this year the Transpartisan Alliance was organized — an informal network of networks that will serve as the convener of the American Citizens’ Summit, the first ever Transpartisan National Convention.  This is an ambitious undertaking that is requiring vision, careful citizen diplomacy, and immense cooperation. It is intended to reduce tensions, build trust and facilitate cooperation on our most pressing national concerns…and its not just for political insiders, activists or organizers.  It’s for average people whose voices are rarely heard.  It’s for formal and informal leaders looking for new allies.  It’s for innovators with ideas that our country needs.  It’s for facilitators, mediators and bridge builders. It’s for businesspeople, artists, religious and non-religious.  It’s for insiders and outsiders.  It’s a “We the People” convention to restore integrity to the phrase government of, by and for people.

Consider joining us February 11-15, 2009 in Denver…what more effective service can you render right now?  Register now, learn more or join the Alliance!

Sincerely,

Joseph McCormick
Co-founder
Reuniting America

Resources:
Transpartisan Alliance
Network

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I.O.U.S.A. Film Review and Resources

The critically-acclaimed documentary film I.O.U.S.A. was conceived of, co-written and executive produced by Agora Financial’s Addison Wiggin. In July 2008, the film was acquired by The Peter G. Peterson Foundation.

It was featured in a Live Premier with Warren Buffet, Pete Peterson and David Walker in 400 theatres around the nation on August 21st, 2008. If you missed the event, you can read a transcript of the national town hall meeting here.

“From September 30, 2007 to the end of this past fiscal year on September 30, 2008, total federal debt grew by $1.0 trillion, from 9,007,653,372,262.48 to $10,024,724,896,912.49, which is an 11.3% annual rate of growth. The federal debt as of October 16, 2008 is now $10,331,139,000,845.92. So in just 16 days since the end of the last fiscal year, the federal debt has grown by an astounding $331.1 billion, which is a 75.5% annual rate of growth. It has taken just 16 days to borrow one-third of what the government borrowed in all of last year.”– Daily Pfennig

Ron Paul: “We can’t afford to pay all these bills, and if we just pay for these bills by printing money, it will destroy the currency – and that will be a much, much more painful reaction than us just tightening our belts and living within our means.”

Warren Buffett: “I do think that piling up more and more and more external debt and having the rest of the world own more and more of the United States may create real political instability down the line and increase the possibility that demagogues come along and do some very foolish things.”

Resources:
56 Trillion Dollar Deficit
Agora Financial
Bureau of the Public Debt
Debt Numbers Overwhelming
I.O.U.S.A. (Film)
Life and Debt (Film)
Money as Debt (Film)
On Passage of Bailout Bill
Review at NH Film Festival
U.S. National Debt Clock

Source: Ashland Resource Center

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Hal Turner Shows New AMERO Currency

New currency being secretly minted at Denver Mint, to replace US Dollar, Canadian Dollar and Mexican Peso in the new NORTH AMERICAN UNION to be established after a phase of martial law after the coming massive Dollar collapse!

Video Source: Disclose.tv

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“Unafraid” by Jeff Golden | Review

Unafraid

I went last night to the final performance of an oratory of Jeff Golden’s new novel “Unafraid” at the Oregon Stage Works. ‘Twas an engaging dialogue between prominent political characters of the late twentieth century, engaging the imagination of what’s possible with great leadership, particular that of John and Robert Kennedy, had they survived the bullets.

“Unafraid will be pivotal for readers who care deeply about our country. Kudoes for this compelling blend of face and fiction.” – John Steiner, Board Chair, Reuniting America

The novel is factual up to the point when John F. Kennedy was shot on November 23rd, 1963, and fictional afterward as JFK survives the bullet in this dramatic story. JFK goes on to win another term as President confronting many of the great issues of his day with great leadership, and altering the course of history. Imagine that! Imagine the possible!

In this fictional novel JFK diffuses the Cuban missile crisis with his brother Bobby, invites Fidel Castro to the great capitalist Joseph Kennedy’s home for a fireside chat in which the resolving of the idealogical argument of socialism versus capitalism takes place.

“…A daringly original, strikingly ‘perfect for our times’ story. This is the great read you’ve been looking for.” – Neale Donald Walsch, Author, Conversations with God

JFK takes a stand against apartheid in South Africa, agrees to cease the arms race with Leonard Bresnov and stop playing “superpowers.” He refuses to take sides with Israel against the Arab world after the 1967 war in the Middle East and commits to a renewable energy future after oil companies threatened to cut off supplies if he doesn’t resume the previous foreign policies of the United States favoring big corporations.

All in all a well-crafted play and I imagine the novel is much the same. I purchased mine and had the author autograph my copy after the showing.

Source: Ashland Resource Center

Resources:
Unafraid by Jeff Golden

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You Know The Banking System Is Unsound When…

goldBy Mike “Mish” Shedlock

1. Paulson appears on Face The Nation and says “Our banking system is a safe and a sound one.” If the banking system was safe and sound, everyone would know it (or at least think it). There would be no need to say it.

2. Paulson says the list of troubled banks “is a very manageable situation”. The reality is there are 90 banks on the list of problem banks. Indymac was not one of them until a month before it collapsed. How many other banks will magically appear on the list a month before they collapse?

3. In a Northern Rock moment, depositors at Indymac pull out their cash. Police had to be called in to ensure order.

4. Washington Mutual (WM), another troubled bank, refused to honor Indymac cashier’s checks. The irony is it makes no sense for customers to pull insured deposits out of Indymac after it went into receivership. The second irony is the last place one would want to put those funds would be Washington Mutual. Eventually Washington Mutual decided it would take those checks but with an 8 week hold. Will Washington Mutual even be around 8 weeks from now?

5. Paulson asked for “Congressional authority to buy unlimited stakes in and lend to Fannie Mae (FNM) and Freddie Mac (FRE)” just days after he said “Financial Institutions Must Be Allowed To Fail”. Obviously Paulson is reporting from the 5th dimension. In some alternate universe, his statements just might make sense.

6. Former Fed Governor William Poole says “Fannie Mae, Freddie Losses Makes Them Insolvent”.

7. Paulson says Fannie Mae and Freddie Mac are “essential” because they represent the only “functioning” part of the home loan market. The firms own or guarantee about half of the $12 trillion in U.S. mortgages. Is it possible to have a sound banking system when the only “functioning” part of the mortgage market is insolvent?

8. Bernanke testified before Congress on monetary policy but did not comment on either money supply or interest rates. The word “money” did not appear at all in his testimony. The only time “interest rate” appeared in his testimony was in relation to consumer credit card rates. How can you have any reasonable economic policy when the Fed chairman is scared half to death to discuss interest rates and money supply?

9. The SEC issued a protective order to protect those most responsible for naked short selling. As long as the investment banks and brokers were making money engaging in naked shorting of stocks, there was no problem. However, when the bears began using the tactic against the big financials, it became time to selectively enforce the existing regulation.

eorder1934-28810. The Fed takes emergency actions twice during options expirations week in regards to the discount window and rate cuts.

11. The SEC takes emergency action during options expirations week regarding short sales.

12. The Fed has implemented an alphabet soup of pawn shop lending facilities whereby the Fed accepts garbage as collateral in exchange for treasuries. Those new Fed lending facilities are called the Term Auction Facility (TAF), the Term Security Lending Facility (TSLF), and the Primary Dealer Credit Facility (PDCF).

13. Citigroup (C), Lehman (LEH), Morgan Stanley(MS), Goldman Sachs (GS) and Merrill Lynch (MER) all have a huge percentage of level 3 assets. Level 3 assets are commonly known as “marked to fantasy” assets. In other words, the value of those assets is significantly if not ridiculously overvalued in comparison to what those assets would fetch on the open market. It is debatable if any of the above firms survive in their present form. Some may not survive in any form.

14. Bernanke openly solicits private equity firms to invest in banks. Is this even close to a remotely normal action for Fed chairman to take?

15. Bear Stearns was taken over by JPMorgan (JPM) days after insuring investors it had plenty of capital. Fears are high that Lehman will suffer the same fate. Worse yet, the Fed had to guarantee the shotgun marriage between Bear Stearns and JP Morgan by providing as much as $30 billion in capital. JPMorgan is responsible for only the first 1/2 billion. Taxpayers are on the hook for all the rest. Was this a legal action for the Fed to take? Does the Fed care?

16. Citigroup needed a cash injection from Abu Dhabi and a second one elsewhere. Then after announcing it would not need more capital is raising still more. The latest news is Citigroup will sell $500 billion in assets. To who? At what price?

17. Merrill Lynch raised $6.6 billion in capital from Kuwait Mizuho, announced it did not need to raise more capital, then raised more capital a few week later.

18. Morgan Stanley sold a 9.9% equity stake to China International Corp. CEO John Mack compensated by not taking his bonus. How generous. Morgan Stanley fell from $72 to $37. Did CEO John Mack deserve a paycheck at all?

19. Bank of America (BAC) agreed to take over Countywide Financial (CFC) and twice announced Countrywide will add profits to B of A. Inquiring minds were asking “How the hell can Countrywide add to Bank of America earnings?” Here’s how. Bank of America just announced it will not guarantee $38.1 billion in Countrywide debt. Questions over “Fraudulent Conveyance” are now surfacing.

20. Washington Mutual agreed to a death spiral cash infusion of $7 billion accepting an offer at $7.85 when the stock was over $13 at the time. Washington Mutual has since fallen in waterfall fashion from $40 and is now trading near $5.00 after a huge rally.

21. Shares of Ambac (ABK) fell from $90 to $2.50. Shared of MBIA (MBI) fell from $70 to $5. Sadly, the top three rating agencies kept their rating on the pair at AAA nearly all the way down. No one can believe anything the government sponsored rating agencies say.

22. In a panic set of moves, the Fed slashed interest rates from 5.25% to 2%. This was the fastest, steepest drop on record. Ironically, the Fed chairman spoke of inflation concerns the entire drop down. Bernanke clearly cannot tell the truth. He does not have to. Actions speak louder than words.

23. FDIC Chairman Sheila Bair said the FDIC is looking for ways to shore up its depleted deposit fund, including charging higher premiums on riskier brokered deposits.

24. There is roughly $6.84 Trillion in bank deposits. $2.60 Trillion of that is uninsured. There is only $53 billion in FDIC insurance to cover $6.84 Trillion in bank deposits. Indymac will eat up roughly $8 billion of that.

25. Of the $6.84 Trillion in bank deposits, the total cash on hand at banks is a mere $273.7 Billion. Where is the rest of the loot? The answer is in off balance sheet SIVs, imploding commercial real estate deals, Alt-A liar loans, Fannie Mae and Freddie Mac bonds, toggle bonds where debt is amazingly paid back with more debt, and all sorts of other silly (and arguably fraudulent) financial wizardry schemes that have bank and brokerage firms leveraged at 30-1 or more. Those loans cannot be paid back.

What cannot be paid back will be defaulted on. If you did not know it before, you do now. The entire US banking system is insolvent.

Source: Global Economic Analyis