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Crashing the American (and Western) Economy


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#41 Guest_lancee_*

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Posted 04 October 2008 - 05:36 PM

Reagan:Enron pales in comparison with Freddie/Fannie catastrophe

Very good article by Michael Reagan making it clear Obama has been a very big recipient of lobbying money from both Freddie and Fannie.This whole catastrophe can be laid at the doorstep of dems, but more importantly article makes clear how foreign powers are now going to be in a position to help themself to the US taxpayer bailout money.Maybe Eagles post about it all being blackmail is not far from the truth.
Article is a must read.

Has much been said in the US media about the big banks at the end of last year going to the oil rich Arabs begging to be bailed out ?

Take care

#42 Guest_lancee_*

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Posted 04 October 2008 - 05:55 PM

Senate package would bail out major foreign Investors including China

Important article alluding to what I posted in previous post.

#43 Guest_Eagle Strike_*

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Posted 05 October 2008 - 01:11 PM

You know back in 1998 Russia defaulted on all its loans. I think we should do the same. Just say....F you foreign countries...the jokes on you. This is the payback for providing a blanket of security over the world and not having it plunged into darkness under the commies.

#44 WmWallace

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Posted 07 October 2008 - 03:05 PM

It has probably been mentioned somewhere within this thread, that, China is the No. 1 holder of US debt (via T-Notes). Although I'm no financial expert (and may have some terminology here mixed up), the way I understand it, there is a mass exodus of money going into the same exact instruments now by those perceiving that T-Notes are the safest of places to hold money during this crisis. The amount of funds now in T-Notes must be staggering (in the trillions).

It would seem to me that this perceived safest of all places to be money-wise is actually the most dangerous, as all it would take is for China to begin demanding their money. Our government would have no alternative other than to pay the debt to China leaving new depositors in a serious lurch should the economy tank even further.

Would domestic investors of T-Notes be left holding (worthless) bags of paper?

#45 Guest_lancee_*

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Posted 07 October 2008 - 04:45 PM

This whole financial mess is rotten as anything.Are TFPers aware the USA and Japan have had to bail out the chi-comms a couple of times in the last couple of decades.The Chinese didn`t like the loss of face with the US coming to the rescue, so US and Japan had to set up the Asia Development Bank.This way no-one pays any attention to the massive infusion of cash thats needed to sustain the whole communist capitalist experiment.The US needs to get rid of the MFN with China and stop this being held hostage by a nation of dangerous dwarves.

The "peace through commerce" charade has never worked ,two world wars prove me right and the dunces in the State dept and Woodrow Wilson Institute wrong.

You are right in your assessment WM Wallace, the same can be said for the urudashi bonds and notes, monopoly money.

This whole financial mess is rotten as anything.Are TFPers aware the USA and Japan have had to bail out the chi-comms a couple of times in the last couple of decades.The Chinese didn`t like the loss of face with the US coming to the rescue, so US and Japan had to set up the Asia Development Bank.This way no-one pays any attention to the massive infusion of cash thats needed to sustain the whole communist capitalist experiment.The US needs to get rid of the MFN with China and stop this being held hostage by a nation of dangerous dwarves.

The "peace through commerce" charade has never worked ,two world wars prove me right and the dunces in the State dept and Woodrow Wilson Institute wrong.

You are right in your assessment WM Wallace, the same can be said for the urudashi bonds and notes, monopoly money.


Another important point that needs more attention is foreign countries are investing their pension funds in the US rather than invest in their own countries, firstly this is because by investing in their own rotten socialist mess they are driving up inflation, so they would rather drive up inflation in the US and if it all goes wrong the US taxpayer will underwrite any loss.These same countries expecting US taxpayer to underwrite them will not underwrite investors monies in their own country.The US in my opinion should only be guaranteeing countries investments where there is a reciprocal agreement or where the US investor has the same level of protection as the US is offering everyone else.NZ and other countries use the US markets to extract wealth from ,but are not contributing anything at all to the system they are bleeding dry.This can never work and never will.
Where is commonsense and logic, holidaying in the Bahamas?

#46 watchman92

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Posted 07 October 2008 - 05:07 PM

You know back in 1998 Russia defaulted on all its loans. I think we should do the same. Just say....F you foreign countries...the jokes on you. This is the payback for providing a blanket of security over the world and not having it plunged into darkness under the commies.


The entire world is ridiculously ungrateful. We should stop sending a single penny to the United Nations. We should stop sending aid of any kind, except to solidly loyal allies like Israel, Japan, Australia, and Britain. Every other country that expects a single US Dollar should also expect to take marching orders. Or, screw that - wait for their economy to collapse and replace their entire corrupt regimes. I've got several countries in mind, just to begin with.

It appears absolutely ludicrous to me that we are sending money to "Palestinians", or Pakistan for that matter. I would shut that faucet off today, and say to Pakistan, "You have 24 hours to get Bin Laden, and every other terrorist leader hiding in your country". See how fast they scurry when American dollars aren't flowing into their coffers. The same thing with Iraq. Start funding your own damn war or we're out. Of course we wouldn't withdraw, but it would light a fire under their ass. Even though it's an Obama talking point, it is absolutely foolish that we are running a 10 trillion dollar deficit while they are sitting on a fat surplus.

We need to start asserting our will. It's about time we exercised the authority we have, while we still have it.

#47 CAseal

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Posted 08 October 2008 - 01:07 AM

VERY good point and, I'd hate to say, "I told you so", just to be right. We need to do something substantive; maybe Watch, you can initiate an Email campaign or something tangible, to make at least a ripple.

#48 Guest_Eagle Strike_*

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Posted 08 October 2008 - 02:17 PM

The only way any one of us could do anything substantial at this point would be to run for a congressional seat and win. Good luck with that. As soon as you make some noise some FSB assassin would probably be hiding in your closet waiting for you to go to sleep so he can inject you with radioactive poison.

#49 Guest_Eagle Strike_*

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Posted 10 October 2008 - 10:49 AM

China is a getting a nice 2 for 1 deal. With the US econ in the proverbial toilet...another country, Japan, is really taking it on the chin...particulary in their heavy manufacturing and tech sectors, since the US imports a lot tech and autos from Japan. We all know from history how much the Chinese love Japan.

#50 watchman92

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Posted 10 October 2008 - 06:44 PM

China is a getting a nice 2 for 1 deal. With the US econ in the proverbial toilet...another country, Japan, is really taking it on the chin...particulary in their heavy manufacturing and tech sectors, since the US imports a lot tech and autos from Japan. We all know from history how much the Chinese love Japan.


Yeah, Japan's probably enemy number two after Taiwan. I'm still of the belief that Russia and China are behind this economic attack. It's too measured - it doesn't look like a panic selloff to me. Michael Savage was talking about how short-selling yesterday is what killed GM's stock as well and dropped the market. Let's not forget how Soros made his money - killing the British currency. Could they be causing our demise by fattening their pockets at the same time? What a disturbing notion.

#51 SJL

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Posted 11 October 2008 - 09:21 AM

http://www.bloomberg...mmodity_futures

This is a must read. The market worldwide is becoming very "wavy".

First Berlusconi seem to be calling for virtual gold confiscation by shutting markets and forcing people to sell metals to raise cash. How about that! People cannot pay their debts back with crappy Euro currency stocks but must use real assets! This is utter BS.

The derivatives great hope of surviving volatility is going up in smokes. Indeed, derivative prices are so high that their backers cannot make good on them and will file for bankruptcy. Banks will screw people of their "volatility" insurance. Say good bye to your stock options.

Then in the US people also sell gold anyways. The $ goes up, but the Euro tumbles so much that Gold there actualy goes up in price while down in the US. People in London trade while waiting in line at gold retailers, stocking up in the metal.

Of course gold is not an investment per say, like a machine or planting crops for the future would be, but it is a good thing to have for the next generation of folkes who would need it for their contributions.

In any case, the very bad tastes and sins of our leaders are what drive this disgust at the market, economy and world leadership. We are headed towards dictatorships, civil strife and wars, and outright great wars, imo. The foreign aid system might turn into the foreign frustration. The socialist "sugah messiah" are gona be hated. Ideology is gona go out the door (except for inter ethnic and nation to nation excuses and blame), and it's going to be attacks round about.

Seek no relief for this "party", ready for cross challenge, this morass must go before friends can find themselves in this crowd of lunatics.

#52 SJL

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Posted 11 October 2008 - 12:05 PM

http://www.worldnetd...mp;pageId=77687

Another must read about the NEP. US investors should be warned of both China and Russia reneging on paying back loans. It's so obvious. The US government is too corrupt and inept at this point to heed that call, of course.

#53 NukAlert

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Posted 11 October 2008 - 12:52 PM

http://www.foxnews.c...,435681,00.html

World Bank Under Cyber Siege in 'Unprecedented Crisis'

Friday , October 10, 2008

By Richard Behar

AThe World Bank Group's computer network — one of the largest repositories of sensitive data about the economies of every nation — has been raided repeatedly by outsiders for more than a year, FOX News has learned.

It is still not known how much information was stolen. But sources inside the bank confirm that servers in the institution's highly-restricted treasury unit were deeply penetrated with spy software last April. Invaders also had full access to the rest of the bank's network for nearly a month in June and July.

In total, at least six major intrusions — two of them using the same group of IP addresses originating from China — have been detected at the World Bank since the summer of 2007, with the most recent breach occurring just last month.

In a frantic midnight e-mail to colleagues, the bank's senior technology manager referred to the situation as an "unprecedented crisis." In fact, it may be the worst security breach ever at a global financial institution. And it has left bank officials scrambling to try to understand the nature of the year-long cyber-assault, while also trying to keep the news from leaking to the public.

The crisis comes at an awkward moment for World Bank president Robert Zoellick, who runs the world's largest and most influential anti-poverty agency, which doles out $25 billion a year, and whose board represents 185 member nations. This weekend, the bank holds its annual series of meetings in Washington — and just in advance of those sessions, Zoellick called for a radical revamping of multilateral organizations in light of the global economic meltdown.

Zoellick is positioning himself and the bank as an institution that can help chart a new path toward global financial stability. But that reputation, more than ever, depends on the bank's stable information infrastructure.

The fact that the information vaults of the World Bank have been repeatedly pried open won't help Zoellick's case.

While it remains unclear how much data has been pilfered from the bank, it's a lot. According to internal memos, "a minimum of 18 servers have been compromised," including some of the bank's most sensitive systems — ranging from the bank's security and password server to a Human Resources server "that contains scanned images of staff documents."

One World Bank director tells FOX News that as many as 40 servers have been penetrated, including one that held contract-procurement data.

Despite the gravity of the break-ins, the bank is trying hard to pretend to outsiders it didn't happen. "There were attempts to hack the bank's computer systems last summer," says a World Bank spokesman. "However, there was no compromise of confidential information." Requests for on-the-record interviews with Zoellick and other top officials were declined.

Meanwhile, the bank's treasurer, Kenneth G. Lay, has been briefing Zoellick's senior management team regularly on the situation since April.

Other bank officials are also sleuthing. The bank's chief information officer, Guy De Poerck, has engaged Price Waterhouse Coopers to do a confidential million-dollar assessment that is expected to tell him what's going on in his own department. And a 22-page internal report by a computer security company named MANDIANT, dated August 18, fleshes out many details of the June-July breaches. But very few people have ever seen the report, and nobody has been permitted to retain a paper copy.

At the same time, De Poerck has been downplaying the problem to the bank's 10,000 rank-and-file staffers as mere intrusion "attempts" in his e-mails. Yet most of those staffers have been asked to change their password three times in the past three months.

"As previously reported in mid-July," CIO De Poerck and a senior bank treasury official wrote in an August announcement to employees, "we would like to reassure you that there is no evidence that Bank staff personal information is at risk from the recent external attempts."

It's unclear how that statement squares with an internal memo to De Poerck a month earlier revealing that a sensitive Human Resources server "that contains scanned images of staff documents" had been successfully breached. De Poerk declined to comment to FOX News about any of these details.

In reality, the situation is serious enough that federal investigators have been called in. "We're not talking about hackers playing games or messing up our website," insists a senior member of the bank's IT department at its Washington headquarters. "It's about the FBI coming last summer and saying, 'You should take a look at your systems because we think something weird is going on.' It's about the intruders knowing what information they wanted — and getting to it whenever they wanted to. They took our existing data stores and organized them in a way that they could be easily accessed at will."

In plainspeak: "They had access to everything," says the source. "They had the keys to every room at the bank. And we can't say whether they still do or don't until we fully and openly address what's happening here."

The data raids are not a matter of stealing inconsequential bits and bytes. The World Bank's data center is literally a treasure trove of vital financial information from around the globe. As a clearinghouse for financial data from both governments and companies, the bank's computers could provide intruders with both a financial and intelligence gold mine — from inside information on bids and contracts to the minutes of confidential board meetings.

If the bank takes a position in a currency, for example, that currency usually moves in response to the bank's actions. Stocks and bonds can also swing up and down based on World Bank announcements. "If you know beforehand that the bank is going to put an order in for oil pipelines in Chad or healthcare systems in India, you can actually make a good amount of money," says one insider.

Although the bank typically provides only a fraction of the financing for a project, its influence on those projects is immense. Private corporations see the bank's stamp of approval as a guarantee that their own larger investments will be safe — and profitable. Knowing in advance what projects the bank's board will reject could be just as profitable.

Some insiders fear that contractors — perhaps even governments — might be seeking advance knowledge on the status of the bank's anti-corruption probes. "The bank knows the books of countries almost as well as the countries do — including the corruption at times," says one insider.

The first breach of the bank's secrets was discovered in September, 2007, after the FBI —while at work on a different cybercrime case — notified the bank that something was wrong. The feds pointed to a part of the bank's network that led out of the Johannesburg hub of the International Finance Corp. (IFC), a bank arm that lends to the private sector.

Within a week of the tip, teams of bank investigators sent to Johannesburg discovered that intruders had gained full and total access to all of IFC's worldwide information — including all incoming and outgoing e-mail — for at least six months. "They were downloading everything and anything," says one insider, who says that IFC's monitoring systems were extremely weak. "They [intruders] had full access."

Investigators discovered that the intruders were using a so-called "cluster" of IP addresses from Macao, China. But since those addresses can be spoofed (i.e., disguised) the discovery doesn't prove that the breaches actually originated in China. Nonetheless, bank officials and its executive director for China clashed behind closed doors over whether or not China's government is involved in the break-ins.

Bank sources tell FOX News that Johannesburg is one of several secret "hubs" containing a "common data store" (or CDS) that the World Bank Group has established around the globe. In layman's terms, a CDS is the cyber-world's version of a bomb shelter where every piece of an organization's data is replicated and backed up in case of a data-wipeout at headquarters in Washington. While it's known that IFC data was accessible at the hub, it remains unclear if all World Bank Group data was compromised there.

The second major breach — of the bank's treasury network in Washington — was discovered in April 2008. The World Bank's Treasury manages $70 billion in assets for 25 clients — including the central banks of some countries. It carries out substantial collaborations with the world's finance ministers on public wealth and debt management, runs an active bond-trading desk in Washington, and does everything from currency trading to capital markets financings.

After a forensic analysis of the treasury breach, bank investigators discovered that spy software was covertly installed on workstations inside the bank's Washington headquarters — allegedly by one or more contractors from Satyam Computer Services, one of India's largest IT companies.

The software — which operates through a method known as keystroke logging — enabled every character typed on a keyboard to be transmitted to a still-unknown location via the Internet.

Upon its discovery, insiders report, bank officials shut off the data link between Washington and Chennai, India, where Satyam has long operated the bank's sole offshore computer center responsible for all of the bank's financial and human resources information.

Satyam was also banned from any future work with the bank. "I want them off the premises now," Zoellick reportedly told his deputies. But at the urging of CIO De Poerck, Satyam employees remained at the bank as recently as Oct. 1 while it engaged in "knowledge transfer" with two new India-based contractors.

Satyam — one of the largest and most prestigious IT companies in India — is publicly listed on the NYSE and boasts having $2 billion in sales and more than 150 Fortune 500 companies as clients. In 2003, Satyam — it means "truth" in Sanskrit — won a much-heralded and lucrative five-year "sole source" contract to design, write and maintain all of the World Bank's information systems.

The contract — which began at $10 million and grew to more than $100 million by 2007 — was suddenly not renewed this year. Satyam so far declines to comment.

Then came the June-July breaches in Washington. They were similar to the Johannesburg attack, as the same group of IP addresses from Macao were used.

This time, however, the cyber-burglars used a different spyware. They broke into an external server run by the bank's private sector development unit. They were able to acquire passwords — including the password for the systems administrator.

That enabled them to jump into the servers at MIGA, the bank's giant insurance arm. It was there that they captured the security administrator's password as he was logging on to his computer.

It took ten days for bank officials to detect that they'd been invaded. Once they did, they shut down all external servers, except for e-mail — which it turns out the invaders were already using as their entrance point. By the end of July the invaders "had completely mapped out the topography of the bank's information systems," says one expert — "where everything was, the types of servers, and the types of files on the servers."

What the intruders did with all that information is the World Bank's most sensitive and painful mystery. It has clearly left the institution in a highly vulnerable position.

And the same may go for bank president Zoellick. Bank insiders say that he needs desperately to get the security of his own house in order. Despite the vast sums that the Bank spends on data and data storage, its information systems are deeply in disarray.

Today the total cost to maintain the bank's information infrastructure is at least $280 million per year. But according to one disgruntled bank staffer, "We don't even have an internal search engine that works."

The truly alarming fact, however, is that someone — or many people — seem to know their way around the bank's most valuable resource very well, even though they aren't supposed to be there at all.

#54 Babs

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Posted 11 October 2008 - 01:49 PM

http://www.bloomberg...mmodity_futures

Of course gold is not an investment per say, like a machine or planting crops for the future would be, but it is a good thing to have for the next generation of folkes who would need it for their contributions.

In any case, the very bad tastes and sins of our leaders are what drive this disgust at the market, economy and world leadership. We are headed towards dictatorships, civil strife and wars, and outright great wars, imo. The foreign aid system might turn into the foreign frustration. The socialist "sugah messiah" are gona be hated. Ideology is gona go out the door (except for inter ethnic and nation to nation excuses and blame), and it's going to be attacks round about.


From the Book of Ezekiel Chapter 7:12-19

10'Behold, the day! Behold, it is coming! Your doom has gone forth; the rod has budded, arrogance has blossomed.

11'Violence has grown into a rod of wickedness None of them shall remain, none of their people, none of their wealth, nor anything eminent among them.

12'The time has come, the day has arrived Let not the buyer rejoice nor the seller mourn; forwrath is against all their multitude.

13'Indeed, the seller will not regain what he sold as long as they both live; for the vision regarding all their multitude will not be averted, nor will any of them maintain his life by his iniquity.

14'They have blown the trumpet and made everything ready, but no one is going to the battle, for My wrath is against all their multitude.

15'The sword is outside and the plague and the famine are within. He who is in the field will die by the sword; famine and the plague will also consume those in the city.

16'Even when their survivors escape, they will be on the mountains like doves of the valleys, all of them mourning, each over his own iniquity.

17'All hands will hang limp and all knees will become like water.

18'They will gird themselves with sackcloth and shuddering will overwhelm them; and shame will be on all faces and baldness on all their heads.

19'They will fling their silver into the streets and their gold will become an abhorrent thing; their silver and their gold will not be able to deliver them in the day of the wrath of the LORD. They cannot satisfy their appetite nor can they fill their stomachs, for their iniquity has become an occasion of stumbling.

Please understand, I am not attempting to "preach" to anyone. I am communicating my reflections of late, as I look around at all the events taking place on the world scene. Like many people, I look to find a source of, or someone or thing to blame for the terrible things that are happening. Many blame the "Illuminati", others blame the Jews, still others blame the evil plots of Russia. Truth is, if we were still a nation honoring God, nothing could touch us.
I believe that we are all to blame. I think, that the enemy of our souls, is able to use the small compromises of integrity, on the part of each person, to benefit his position and to bring about his plan against the people of this country and the world as a whole. I know that I have not lived a perfect life. Everytime that I have compromised, I have contributed to the problem.
God establishes rulers and kingdoms, and He plucks them up. From the passages above, it is clear that "shame will be on ALL faces ". The only hope this country has, is for His people to repent and turn back to the one true God, who knows the beginning from the end. I am afraid though, that it's too late for this nation. I hope that I am wrong. For those of us that have repented and look to the One True Living God, may He be our strength and our shield, and may He hide us from the things that are coming.

#55 watchman92

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Posted 11 October 2008 - 09:18 PM

The minute I saw the financial "crisis" happening, and so near the election, I remembered a strategy I'd read somewhere about socialists trying to bankrupt the country in order to bring about radical change. The problem was, I couldn't remember the exact name and thus could never find it again.

Fortunately, the American Thinker was thinking along the same lines and even wrote an article about how Obama is using this "manufactured crisis" to sail into office. It's the Cloward-Piven Strategy and it's extremely sinister.

_________________________________________________________________

Barack Obama and the Strategy of Manufactured Crisis
By James Simpson
America waits with bated breath while Washington struggles to bring the U.S. economy back from the brink of disaster. But many of those same politicians caused the crisis, and if left to their own devices will do so again.

Despite the mass media news blackout, a series of books, talk radio and the blogosphere have managed to expose Barack Obama's connections to his radical mentors -- Weather Underground bombers William Ayers and Bernardine Dohrn, Communist Party member Frank Marshall Davis and others. David Horowitz and his Discover the Networks.org have also contributed a wealth of information and have noted Obama's radical connections since the beginning.

Yet, no one to my knowledge has yet connected all the dots between Barack Obama and the Radical Left. When seen together, the influences on Obama's life comprise a who's who of the radical leftist movement, and it becomes painfully apparent that not only is Obama a willing participant in that movement, he has spent most of his adult life deeply immersed in it.

But even this doesn't fully describe the extreme nature of this candidate. He can be tied directly to a malevolent overarching strategy that has motivated many, if not all, of the most destructive radical leftist organizations in the United States since the 1960s.

The Cloward-Piven Strategy of Orchestrated Crisis

In an earlier post, I noted the liberal record of unmitigated legislative disasters, the latest of which is now being played out in the financial markets before our eyes. Before the 1994 Republican takeover, Democrats had sixty years of virtually unbroken power in Congress - with substantial majorities most of the time. Can a group of smart people, studying issue after issue for years on end, with virtually unlimited resources at their command, not come up with a single policy that works? Why are they chronically incapable?

Why?

One of two things must be true. Either the Democrats are unfathomable idiots, who ignorantly pursue ever more destructive policies despite decades of contrary evidence, or they understand the consequences of their actions and relentlessly carry on anyway because they somehow benefit.

I submit to you they understand the consequences. For many it is simply a practical matter of eliciting votes from a targeted constituency at taxpayer expense; we lose a little, they gain a lot, and the politician keeps his job. But for others, the goal is more malevolent - the failure is deliberate. Don't laugh. This method not only has its proponents, it has a name: the Cloward-Piven Strategy. It describes their agenda, tactics, and long-term strategy.

The Strategy was first elucidated in the May 2, 1966 issue of The Nation magazine by a pair of radical socialist Columbia University professors, Richard Andrew Cloward and Frances Fox Piven. David Horowitz summarizes it as:

The strategy of forcing political change through orchestrated crisis. The "Cloward-Piven Strategy" seeks to hasten the fall of capitalism by overloading the government bureaucracy with a flood of impossible demands, thus pushing society into crisis and economic collapse.


Cloward and Piven were inspired by radical organizer [and Hillary Clinton mentor] Saul Alinsky:

"Make the enemy live up to their (sic) own book of rules," Alinsky wrote in his 1989 book Rules for Radicals. When pressed to honor every word of every law and statute, every Judeo-Christian moral tenet, and every implicit promise of the liberal social contract, human agencies inevitably fall short. The system's failure to "live up" to its rule book can then be used to discredit it altogether, and to replace the capitalist "rule book" with a socialist one. (Courtesy Discover the Networks.org)


Newsmax rounds out the picture:

Their strategy to create political, financial, and social chaos that would result in revolution blended Alinsky concepts with their more aggressive efforts at bringing about a change in U.S. government. To achieve their revolutionary change, Cloward and Piven sought to use a cadre of aggressive organizers assisted by friendly news media to force a re-distribution of the nation's wealth.


In their Nation article, Cloward and Piven were specific about the kind of "crisis" they were trying to create:

By crisis, we mean a publicly visible disruption in some institutional sphere. Crisis can occur spontaneously (e.g., riots) or as the intended result of tactics of demonstration and protest which either generate institutional disruption or bring unrecognized disruption to public attention.


No matter where the strategy is implemented, it shares the following features:

1. The offensive organizes previously unorganized groups eligible for government benefits but not currently receiving all they can.
2. The offensive seeks to identify new beneficiaries and/or create new benefits.
3. The overarching aim is always to impose new stresses on target systems, with the ultimate goal of forcing their collapse.


Capitalizing on the racial unrest of the 1960s, Cloward and Piven saw the welfare system as their first target. They enlisted radical black activist George Wiley, who created the National Welfare Reform Organization (NWRO) to implement the strategy. Wiley hired militant foot soldiers to storm welfare offices around the country, violently demanding their "rights." According to a City Journal article by Sol Stern, welfare rolls increased from 4.3 million to 10.8 million by the mid-1970s as a result, and in New York City, where the strategy had been particularly successful, "one person was on the welfare rolls... for every two working in the city's private economy."

According to another City Journal article titled "Compassion Gone Mad":

The movement's impact on New York City was jolting: welfare caseloads, already climbing 12 percent a year in the early sixties, rose by 50 percent during Lindsay's first two years; spending doubled... The city had 150,000 welfare cases in 1960; a decade later it had 1.5 million.


The vast expansion of welfare in New York City that came of the NWRO's Cloward-Piven tactics sent the city into bankruptcy in 1975. Rudy Giuliani cited Cloward and Piven by name as being responsible for "an effort at economic sabotage." He also credited Cloward-Piven with changing the cultural attitude toward welfare from that of a temporary expedient to a lifetime entitlement, an attitude which in-and-of-itself has caused perhaps the greatest damage of all.

Cloward and Piven looked at this strategy as a gold mine of opportunity. Within the newly organized groups, each offensive would find an ample pool of foot soldier recruits willing to advance its radical agenda at little or no pay, and expand its base of reliable voters, legal or otherwise. The radicals' threatening tactics also would accrue an intimidating reputation, providing a wealth of opportunities for extorting monetary and other concessions from the target organizations. In the meantime, successful offensives would create an ever increasing drag on society. As they gleefully observed:

Moreover, this kind of mass influence is cumulative because benefits are continuous. Once eligibility for basic food and rent grants is established, the drain on local resources persists indefinitely.


The next time you drive through one of the many blighted neighborhoods in our cities, or read of the astronomical crime, drug addiction, and out-of-wedlock birth rates, or consider the failed schools, strapped police and fire resources of every major city, remember Cloward and Piven's thrill that "...the drain on local resources persists indefinitely."

ACORN, the new tip of the Cloward-Piven spear

In 1970, one of George Wiley's protégés, Wade Rathke -- like Bill Ayers, a member of the radical Students for a Democratic Society (SDS) -- was sent to found the Arkansas Community Organizations for Reform Now. While NWRO had made a good start, it alone couldn't accomplish the Cloward-Piven goals. Rathke's group broadened the offensive to include a wide array of low income "rights." Shortly thereafter they changed "Arkansas" to "Association of" and ACORN went nationwide.

Today ACORN is involved in a wide array of activities, including housing, voting rights, illegal immigration and other issues. According to ACORN's website: "ACORN is the nation's largest grassroots community organization of low-and moderate-income people with over 400,000 member families organized into more than 1,200 neighborhood chapters in 110 cities across the country," It is perhaps the largest radical group in the U.S. and has been cited for widespread criminal activity on many fronts.

Voting

On voting rights, ACORN and its voter mobilization subsidiary, Project Vote, have been involved nationwide in efforts to grant felons the vote and lobbied heavily for the Motor Voter Act of 1993, a law allowing people to register at motor vehicle departments, schools, libraries and other public places. That law had been sought by Cloward and Piven since the early1980s and they were present, standing behind President Clinton at the signing ceremony.

ACORN's voter rights tactics follow the Cloward-Piven Strategy:

* 1. Register as many Democrat voters as possible, legal or otherwise and help them vote, multiple times if possible.
* 2. Overwhelm the system with fraudulent registrations using multiple entries of the same name, names of deceased, random names from the phone book, even contrived names.
* 3. Make the system difficult to police by lobbying for minimal identification standards.


In this effort, ACORN sets up registration sites all over the country and has been frequently cited for turning in fraudulent registrations, as well as destroying republican applications. In the 2004-2006 election cycles alone, ACORN was accused of widespread voter fraud in 12 states. It may have swung the election for one state governor.

ACORN's website brags: "Since 2004, ACORN has helped more than 1.7 million low- and moderate-income and minority citizens apply to register to vote." Project vote boasts 4 million. I wonder how many of them are dead? For the 2008 cycle, ACORN and Project Vote have pulled out all the stops. Given their furious nationwide effort, it is not inconceivable that this presidential race could be decided by fraudulent votes alone.

Barack Obama ran ACORN's Project Vote in Chicago and his highly successful voter registration drive was credited with getting the disgraced former Senator Carol Moseley-Braun elected. Newsmax reiterates Cloward and Piven's aspirations for ACORN's voter registration efforts:

By advocating massive, no-holds-barred voter registration campaigns, they [Cloward & Piven] sought a Democratic administration in Washington, D.C. that would re-distribute the nation's wealth and lead to a totalitarian socialist state.


Illegal Immigration

As I have written elsewhere, the Radical Left's offensive to promote illegal immigration is "Cloward-Piven on steroids." ACORN is at the forefront of this movement as well, and was a leading organization among a broad coalition of radical groups, including Soros' Open Society Institute, the Service Employees International Union (ACORN founder Wade Rathke also runs a SEIU chapter), and others, that became the Coalition for Comprehensive Immigration Reform. CCIR fortunately failed to gain passage for the 2007 illegal immigrant amnesty bill, but its goals have not changed.

The burden of illegal immigration on our already overstressed welfare system has been widely documented. Some towns in California have even been taken over by illegal immigrant drug cartels. The disease, crime and overcrowding brought by illegal immigrants places a heavy burden on every segment of society and every level of government, threatening to split this country apart at the seams. In the meantime, radical leftist efforts to grant illegal immigrants citizenship guarantee a huge pool of new democrat voters. With little border control, terrorists can also filter in.

Obama aided ACORN as their lead attorney in a successful suit he brought against the Illinois state government to implement the Motor Voter law there. The law had been resisted by Republican Governor Jim Edgars, who feared the law was an opening to widespread vote fraud.

His fears were warranted as the Motor Voter law has since been cited as a major opportunity for vote fraud, especially for illegal immigrants, even terrorists. According to the Wall Street Journal: "After 9/11, the Justice Department found that eight of the 19 hijackers were registered to vote..."

ACORN's dual offensives on voting and illegal immigration are handy complements. Both swell the voter rolls with reliable democrats while assaulting the country ACORN seeks to destroy with overwhelming new problems.

Mortgage Crisis

And now we have the mortgage crisis, which has sent a shock wave through Wall Street and panicked world financial markets like no other since the stock market crash of 1929. But this is a problem created in Washington long ago. It originated with the Community Reinvestment Act (CRA), signed into law in 1977 by President Jimmy Carter. The CRA was Carter's answer to a grassroots activist movement started in Chicago, and forced banks to make loans to low income, high risk customers. PhD economist and former Texas Senator Phil Gramm has called it: "a vast extortion scheme against the nation's banks."

ACORN aggressively sought to expand loans to low income groups using the CRA as a whip. Economist Stan Leibowitz wrote in the New York Post:

In the 1980s, groups such as the activists at ACORN began pushing charges of "redlining"-claims that banks discriminated against minorities in mortgage lending. In 1989, sympathetic members of Congress got the Home Mortgage Disclosure Act amended to force banks to collect racial data on mortgage applicants; this allowed various studies to be ginned up that seemed to validate the original accusation.


In fact, minority mortgage applications were rejected more frequently than other applications-but the overwhelming reason wasn't racial discrimination, but simply that minorities tend to have weaker finances.

ACORN showed its colors again in 1991, by taking over the House Banking Committee room for two days to protest efforts to scale back the CRA. Obama represented ACORN in the Buycks-Roberson v. Citibank Fed. Sav. Bank, 1994 suit against redlining. Most significant of all, ACORN was the driving force behind a 1995 regulatory revision pushed through by the Clinton Administration that greatly expanded the CRA and laid the groundwork for the Fannie Mae, Freddie Mac borne financial crisis we now confront. Barack Obama was the attorney representing ACORN in this effort. With this new authority, ACORN used its subsidiary, ACORN Housing, to promote subprime loans more aggressively.

As a New York Post article describes it:

A 1995 strengthening of the Community Reinvestment Act required banks to find ways to provide mortgages to their poorer communities. It also let community activists intervene at yearly bank reviews, shaking the banks down for large pots of money.


Banks that got poor reviews were punished; some saw their merger plans frustrated; others faced direct legal challenges by the Justice Department.


Flexible lending programs expanded even though they had higher default rates than loans with traditional standards. On the Web, you can still find CRA loans available via ACORN with "100 percent financing . . . no credit scores . . . undocumented income . . . even if you don't report it on your tax returns." Credit counseling is required, of course.

Ironically, an enthusiastic Fannie Mae Foundation report singled out one paragon of nondiscriminatory lending, which worked with community activists and followed "the most flexible underwriting criteria permitted." That lender's $1 billion commitment to low-income loans in 1992 had grown to $80 billion by 1999 and $600 billion by early 2003.

The lender they were speaking of was Countrywide, which specialized in subprime lending and had a working relationship with ACORN.

Investor's Business Daily added:

The revisions also allowed for the first time the securitization of CRA-regulated loans containing subprime mortgages. The changes came as radical "housing rights" groups led by ACORN lobbied for such loans. ACORN at the time was represented by a young public-interest lawyer in Chicago by the name of Barack Obama. (Emphasis, mine.)


Since these loans were to be underwritten by the government sponsored Fannie Mae and Freddie Mac, the implicit government guarantee of those loans absolved lenders, mortgage bundlers and investors of any concern over the obvious risk. As Bloomberg reported: "It is a classic case of socializing the risk while privatizing the profit."

And if you think Washington policy makers cared about ACORN's negative influence, think again. Before this whole mess came down, a Democrat-sponsored bill on the table would have created an "Affordable Housing Trust Fund," granting ACORN access to approximately $500 million in Fannie Mae and Freddie Mac revenues with little or no oversight.

Even now, unbelievably -- on the brink of national disaster -- Democrats have insisted ACORN benefit from bailout negotiations! Senator Lindsay Graham reported last night (9/25/08) in an interview with Greta Van Susteren of On the Record that Democrats want 20 percent of the bailout money to go to ACORN!

This entire fiasco represents perhaps the pinnacle of ACORN's efforts to advance the Cloward-Piven Strategy and is a stark demonstration of the power they wield in Washington.

Enter Barack Obama

In attempting to capture the significance of Barack Obama's Radical Left connections and his relation to the Cloward Piven strategy, I constructed following flow chart. It is by no means complete. There are simply too many radical individuals and organizations to include them all here. But these are perhaps the most significant.

Cloward Piven Strategy

The chart puts Barack Obama at the epicenter of an incestuous stew of American radical leftism. Not only are his connections significant, they practically define who he is. Taken together, they constitute a who's who of the American radical left, and guiding all is the Cloward-Piven strategy.

Conspicuous in their absence are any connections at all with any other group, moderate, or even mildly leftist. They are all radicals, firmly bedded in the anti-American, communist, socialist, radical leftist mesh.

Saul Alinsky

Most people are unaware that Barack Obama received his training in "community organizing" from Saul Alinsky's Industrial Areas Foundation. But he did. In and of itself that marks his heritage and training as that of a radical activist. One really needs go no further. But we have.

Bill Ayers

Obama objects to being associated with SDS bomber Bill Ayers, claiming he is being smeared with "guilt by association." But they worked together at the Woods Fund. The Wall Street Journal added substantially to our knowledge by describing in great detail Obama's work over five years with SDS bomber Bill Ayers on the board of a non-profit, the Chicago Annenberg Challenge, to push a radical agenda on public school children. As Stanley Kurtz states:

"...the issue here isn't guilt by association; it's guilt by participation. As CAC chairman, Mr. Obama was lending moral and financial support to Mr. Ayers and his radical circle. That is a story even if Mr. Ayers had never planted a single bomb 40 years ago."


Also included in the mix is Theresa Heinz Kerry's favorite charity, the Tides Foundation. A partial list of Tides grants tells you all you need to know: ACLU, ACORN, Center for American Progress, Center for Constitutional Rights (a communist front,) CAIR, Earth Justice, Institute for Policy Studies (KGB spy nest), National Lawyers Guild (oldest communist front in U.S.), People for the Ethical Treatment of Animals (PETA), and practically every other radical group there is. ACORN's Wade Rathke runs a Tides subsidiary, the Tides Center.

Carl Davidson and the New Party

We have heard about Bomber Bill, but we hear little about fellow SDS member Carl Davidson. According to Discover the Networks, Davidson was an early supporter of Barack Obama and a prominent member of Chicago's New Party, a synthesis of CPUSA members, Socialists, ACORN veterans and other radicals. Obama sought and received the New Party's endorsement, and they assisted with his campaign. The New Party also developed a strong relationship with ACORN. As an excellent article on the New Party observes: "Barack Obama knew what he was getting into and remains an ideal New Party candidate."

George Soros

The chart also suggests the reason for George Soros' fervent support of Obama. The President of his Open Society Institute is Aryeh Neier, founder of the radical Students for a Democratic Society (SDS). As mentioned above, three other former SDS members had extensive contact with Obama: Bill Ayers, Carl Davidson and Wade Rathke. Surely Aryeh Neier would have heard from his former colleagues of the promising new politician. More to the point, Neier is firmly committed to supporting the hugely successful radical organization, ACORN, and would be certain back their favored candidate, Barack Obama.

ACORN

Obama has spent a large portion of his professional life working for ACORN or its subsidiaries, representing ACORN as a lawyer on some of its most critical issues, and training ACORN leaders. Stanley Kurtz's excellent National Review article, "Inside Obama's Acorn." also describes Obama's ACORN connection in detail. But I can't improve on Obama's own words:

I've been fighting alongside ACORN on issues you care about my entire career (emphasis added). Even before I was an elected official, when I ran Project Vote voter registration drive in Illinois, ACORN was smack dab in the middle of it, and we appreciate your work. - Barack Obama, Speech to ACORN, November 2007 (Courtesy Newsmax.)


In another excellent article on Obama's ACORN connections, Newsmax asks a nagging question:

It would be telling to know if Obama, during his years at Columbia, had occasion to meet Cloward and study the Cloward-Piven Strategy.


I ask you, is it possible ACORN would train Obama to take leadership positions within ACORN without telling him what he was training for? Is it possible ACORN would put Obama in leadership positions without clueing him into what his purpose was?? Is it possible that this most radical of organizations would put someone in charge of training its trainers, without him knowing what it was he was training them for?

As a community activist for ACORN; as a leadership trainer for ACORN; as a lead organizer for ACORN's Project Vote; as an attorney representing ACORN's successful efforts to impose Motor Voter regulations in Illinois; as ACORN's representative in lobbying for the expansion of high risk housing loans through Fannie Mae and Freddie Mac that led to the current crisis; as a recipient of their assistance in his political campaigns -- both with money and campaign workers; it is doubtful that he was unaware of ACORN's true goals. It is doubtful he was unaware of the Cloward-Piven Strategy.

Fast-forward to 2005 when an obsequious, servile and scraping Daniel Mudd, CEO of Fannie Mae spoke at the Congressional Black Caucus swearing in ceremony for newly-elected Illinois Senator, Barack Obama. Mudd called, the Congressional Black Caucus "our family" and "the conscience of Fannie Mae."

In 2005, Republicans sought to rein in Fannie and Freddie. Senator John McCain was at the forefront of that effort. But it failed due to an intense lobbying effort put forward by Fannie and Freddie.

In his few years as a U.S. senator, Obama has received campaign contributions of $126,349, from Fannie and Freddie, second only to the $165,400 received by Senator Chris Dodd, who has been getting donations from them since 1988. What makes Obama so special?

His closest advisers are a dirty laundry list of individuals at the heart of the financial crisis: former Fannie Mae CEO Jim Johnson; Former Fannie Mae CEO and former Clinton Budget Director Frank Raines; and billionaire failed Superior Bank of Chicago Board Chair Penny Pritzker.

Johnson had to step down as adviser on Obama's V.P. search after this gem came out:

An Office of Federal Housing Enterprise Oversight (OFHEO) report[1] from September 2004 found that, during Johnson's tenure as CEO, Fannie Mae had improperly deferred $200 million in expenses. This enabled top executives, including Johnson and his successor, Franklin Raines, to receive substantial bonuses in 1998.[2] A 2006 OFHEO report[3] found that Fannie Mae had substantially under-reported Johnson's compensation. Originally reported as $6-7 million, Johnson actually received approximately $21 million.

Obama denies ties to Raines but the Washington Post calls him a member of "Obama's political circle." Raines and Johnson were fined $3 million by the Office of Federal Housing Oversight for their manipulation of Fannie books. The fine is small change however, compared to the $50 million Raines was able to obtain in improper bonuses as a result of juggling the books.

Most significantly, Penny Pritzker, the current Finance Chairperson of Obama's presidential campaign helped develop the complicated investment bundling of subprime securities at the heart of the meltdown. She did so in her position as shareholder and board chair of Superior Bank. The Bank failed in 2001, one of the largest in recent history, wiping out $50 million in uninsured life savings of approximately 1,400 customers. She was named in a RICO class action law suit but doesn't seem to have come out of it too badly.

As a young attorney in the 1990s, Barack Obama represented ACORN in Washington in their successful efforts to expand Community Reinvestment Act (CRA) authority. In addition to making it easier for ACORN groups to force banks into making risky loans, this also paved the way for banks like Superior to package mortgages as investments, and for the Government Sponsored Enterprises Fannie Mae and Freddie Mac to underwrite them. These changes created the conditions that ultimately lead to the current financial crisis.

Did they not know this would occur? Were these smart people, led by a Harvard graduate, unaware of the Econ 101 concept of moral hazard that would result from the government making implicit guarantees to underwrite private sector financial risk? They should have known that freeing the high-risk mortgage market of risk, calamity was sure to ensue. I think they did.

Barack Obama, the Cloward-Piven candidate, no matter how he describes himself, has been a radical activist for most of his political career. That activism has been in support of organizations and initiatives that at their heart seek to tear the pillars of this nation asunder in order to replace them with their demented socialist vision. Their influence has spread so far and so wide that despite their blatant culpability in the current financial crisis, they are able to manipulate Capital Hill politicians to cut them into $140 billion of the bailout pie!

God grant those few responsible yet remaining in Washington, DC the strength to prevent this massive fraud from occurring. God grant them the courage to stand up in the face of this Marxist tidal wave.

Jim Simpson is a former White House staff economist and budget analyst. His writings have been published in American Thinker, Washington Times, FrontPage Magazine, DefenseWatch, Soldier of Fortune and others. His blog is Truth and Consequences..
on "Barack Obama and the Strategy of Manufactured Crisis"

#56 goodcomdeadcom

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  • Interests:Greetings, and God bless. I am William, in Idaho Occupation: Welding. Hobbies: Reading, singing in the church choir and three-gun patrol shooting. Bio: Army brat, ex-Navy, former rabid secular humanist, current junior high Sunday school teacher and just glad to be alive and in the service of my Lord and Savior Jesus, the Christ.

Posted 12 October 2008 - 03:23 PM

Greetings, and God bless.

Great find, Watchman! Below is the link to the article, the printer friendly version. I suggest we all forward and/or print this thing and spread it around. Don't know if it would stop the Obama freight train, but at least we can let people know how things are gonna be if he wins.

http://www.americant...e_strategy.html
Soylent Green Is Sheeple!!!

#57 Shawna11

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Posted 13 October 2008 - 01:28 PM

Here's a complementary article to the one quoted in the watchman92's post, containing a brief chronicle of the process whereby Fannie and Freddie became the piggy banks of the Left, and then going on to confirm the efforts of both President Bush and Sen. McCain to regulate their politically-motivated profligacy:

http://www.frontpage...C8-32FA87CAB52A

It's a lengthy article, well worth reading in its entirety; below is an excerpt:

Now that the crisis has arrived, Democratic finger-pointing has become the order of the day. Leading the charge, Barack Obama not only blames Republicans, but tacitly blames capitalism as a whole, referencing it by the pejorative code name of “trickle-down” economics. Yet, Obama makes no mention of the fact that the Bush administration exhorted Congress for years to set up an agency to regulate lending institutions like Fannie Mae and Freddie Mac. Nor does he mention that John McCain demanded similar oversight, only to be rebuffed by Democrats like House Financial Services Committee Chairman Barney Frank, who continued to favor the issuance of the subprime loans that have now caused the mortgage market to collapse.

Since the 1990s, indeed, Fannie Mae and Freddie Mac have been in the Democratic Party’s hip pocket. From 1991 to 1998, for example, Fannie Mae was headed by James Johnson, a longtime aide to former Democratic vice president Walter Mondale. While dutifully following the Clinton administration’s aforementioned mandate, and thereby helping to run the mortgage lender into the ground, Johnson himself earned tens of millions of dollars in his Fannie Mae post, including $21 million in 1998 alone. Johnson made headlines this past summer when Barack Obama tapped him to chair his vice presidential selection committee. Johnson had to resign in disgrace from that position when it was revealed that he had taken at least five below-market real estate loans totaling more than $7 million from Countrywide Financial Corporation.

Johnson’s successor as Fannie Mae’s head, Franklin Raines, had previously served as a budget director to President Bill Clinton. During his years at Fannie’s helm between 1999 and 2005, Raines, while continuing the ill-advised policies that ultimately would bankrupt the company, pocketed nearly $100 million in compensation before leaving under a cloud of scandal. It seems that Raines had manipulated profit-and-loss reports so as to enable himself and other senior executives to earn enormous bonuses on top of already-high salaries – in 2003 alone, Raines received $16.8 million in cash compensation – even as the financial empire he oversaw was imploding.

Another Fannie Mae luminary was Jamie Gorelick, who served as vice chair of the mortgage lender from 1998 to 2003. Prior to that, she had been Janet Reno’s Deputy Attorney General during precisely those years when the Clinton Justice Department was aggressively compelling banks to make subprime loans to unworthy borrowers. That experience gave Gorelick valuable training for her future post at Fannie Mae, where she ultimately would increase her personal net worth by $26 million.[/b]


Watchman92:Truth is, if we were still a nation honoring God, nothing could touch us.
I believe that we are all to blame. I think, that the enemy of our souls, is able to use the small compromises of integrity, on the part of each person, to benefit his position and to bring about his plan against the people of this country and the world as a whole. I know that I have not lived a perfect life. Everytime that I have compromised, I have contributed to the problem.


I wholeheartedly agree. While we cannot keep the Left from its unremitting efforts to infiltrate, subvert, and corrupt our institutions (and through them, whole generations), most of us have not done all we could to check their insidious predations, especially in terms of active opposition to abortion on demand, to the homosexual-activist agenda, and to its political and ideological hijacking of our public schools.

Because we have allowed the Left, through these and other means, to poison our culture and malform the consciences of young and old, concrete realities like the ones documented in these articles have no power to convince. The twin slave masters of ideology and hedonism have minds and hearts in thrall, so that they may, as Christ noted, "look, but not see; listen, yet not understand."

Ideology has come to take the place of those supposed dinosaurs of the spirit, religion and philosophy. Ah, how the carcasses and skeletons of bygone ideals fill up the landscape. Poor old beasts, unable to adapt themselves to this sudden drop in temperature. How agonizingly they die!--frozen in the snows of our spiritual ice age, to serve as food for the snow rats, those devious little creatures whose sum of grandeur coalesces in the term "rational self interest" or "class struggle"! Ah, such coziness of conception. And look! There he is!--that furry face, those myopic eyes, that one-sided little brain wondering if its stomach can digest all this frozen meat. But not to worry. The little snow rat's digestive juices contain ideology. And ideology can dissolve whatever exists. It can integrate contradictions, prophecies, gods, devils, and every type of pseudoscience. Therefore the snow rat can swallow everything--and does! ... That is the low state we are in. It is not the extent to which we have absorbed ideology, but the extent to which ideology has absorbed us. Origins of the Fourth World War p. 140



#58 SJL

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Posted 14 October 2008 - 06:27 PM

Here is a $10,000 question:

Notwithstanding the GOP socio-economic blunders and cave-ins to Democrates ("no new taxes") and the media, why is the existence of a quasi socialist majority party like the Democrates not scaring away investors?

Something is wrong in how the markets and the Dow Jones are being recycled during ups and downs. It must be that good investors must leave and bad ones replace them "for bargains", until they get burned and another generation of even worst investors come to the bandwaggon, along now with members of Congress themselves and people on welfare or doing nothing on government payroll (aka government paycheck investment programs for government workers). Some good investors must come back and cash in on the stupidity and somehow make it on these folkes' stupidity in the meantime - also called by the paranoiac left as "the greedies" or the "capitalist conspiracists".

I believe the mere sight of Obama taking power (his AIG/Fannie sbirs conspiring to tank the economy to ding at McCain's lead notwithstanding) might be part of the economic problems and WallStreet going down. Also note that a good news is low oil price as a result of the GOP's calls for drill, but this we do not hear about at all any more.

It's also unnerving to hear that folkes trust Obama more on the economy, hence McCain losing lead there during the bail out crisis. What kind of economy are they talking about? Free handouts for themselves or the real generators of jobs and prosperity, aka hard work? What world are these people living in? Obama is pro-terror, pro-tax, pro-bail out, anti-drill etc to name a few.

#59 Guest_lancee_*

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Posted 19 October 2008 - 10:08 PM

http://www.foxnews.c...,435681,00.html

World Bank Under Cyber Siege in 'Unprecedented Crisis'

Friday , October 10, 2008

By Richard Behar

AThe World Bank Group's computer network — one of the largest repositories of sensitive data about the economies of every nation — has been raided repeatedly by outsiders for more than a year, FOX News has learned.


Other bank officials are also sleuthing. The bank's chief information officer, Guy De Poerck, has engaged Price Waterhouse Coopers to do a confidential million-dollar assessment that is expected to tell him what's going on in his own department. And a 22-page internal report by a computer security company named MANDIANT, dated August 18, fleshes out many details of the June-July breaches. But very few people have ever seen the report, and nobody has been permitted to retain a paper copy.


In plainspeak: "They had access to everything," says the source. "They had the keys to every room at the bank. And we can't say whether they still do or don't until we fully and openly address what's happening here."

If the bank takes a position in a currency, for example, that currency usually moves in response to the bank's actions. Stocks and bonds can also swing up and down based on World Bank announcements. "If you know beforehand that the bank is going to put an order in for oil pipelines in Chad or healthcare systems in India, you can actually make a good amount of money," says one insider.

Although the bank typically provides only a fraction of the financing for a project, its influence on those projects is immense. Private corporations see the bank's stamp of approval as a guarantee that their own larger investments will be safe — and profitable. Knowing in advance what projects the bank's board will reject could be just as profitable.

Some insiders fear that contractors — perhaps even governments — might be seeking advance knowledge on the status of the bank's anti-corruption probes.


Within a week of the tip, teams of bank investigators sent to Johannesburg discovered that intruders had gained full and total access to all of IFC's worldwide information — including all incoming and outgoing e-mail — for at least six months. "They were downloading everything and anything," says one insider, who says that IFC's monitoring systems were extremely weak. "They [intruders] had full access."

Investigators discovered that the intruders were using a so-called "cluster" of IP addresses from Macao, China. But since those addresses can be spoofed (i.e., disguised) the discovery doesn't prove that the breaches actually originated in China. Nonetheless, bank officials and its executive director for China clashed behind closed doors over whether or not China's government is involved in the break-ins.

Bank sources tell FOX News that Johannesburg is one of several secret "hubs" containing a "common data store" (or CDS) that the World Bank Group has established around the globe. In layman's terms, a CDS is the cyber-world's version of a bomb shelter where every piece of an organization's data is replicated and backed up in case of a data-wipeout at headquarters in Washington.

The second major breach — of the bank's treasury network in Washington — was discovered in April 2008. The World Bank's Treasury manages $70 billion in assets for 25 clients — including the central banks of some countries. It carries out substantial collaborations with the world's finance ministers on public wealth and debt management, runs an active bond-trading desk in Washington, and does everything from currency trading to capital markets financings.

After a forensic analysis of the treasury breach, bank investigators discovered that spy software was covertly installed on workstations inside the bank's Washington headquarters — allegedly by one or more contractors from Satyam Computer Services, one of India's largest IT companies.

The software — which operates through a method known as keystroke logging — enabled every character typed on a keyboard to be transmitted to a still-unknown location via the Internet.

Upon its discovery, insiders report, bank officials shut off the data link between Washington and Chennai, India, where Satyam has long operated the bank's sole offshore computer center responsible for all of the bank's financial and human resources information.

Satyam was also banned from any future work with the bank. "I want them off the premises now," Zoellick reportedly told his deputies. But at the urging of CIO De Poerck, Satyam employees remained at the bank as recently as Oct. 1 while it engaged in "knowledge transfer" with two new India-based contractors.

Satyam — one of the largest and most prestigious IT companies in India — is publicly listed on the NYSE and boasts having $2 billion in sales and more than 150 Fortune 500 companies as clients. In 2003, Satyam — it means "truth" in Sanskrit — won a much-heralded and lucrative five-year "sole source" contract to design, write and maintain all of the World Bank's information systems.

The contract — which began at $10 million and grew to more than $100 million by 2007 — was suddenly not renewed this year. Satyam so far declines to comment.

Then came the June-July breaches in Washington. They were similar to the Johannesburg attack, as the same group of IP addresses from Macao were used.

This time, however, the cyber-burglars used a different spyware. They broke into an external server run by the bank's private sector development unit. They were able to acquire passwords — including the password for the systems administrator.

That enabled them to jump into the servers at MIGA, the bank's giant insurance arm. It was there that they captured the security administrator's password as he was logging on to his computer.

It took ten days for bank officials to detect that they'd been invaded. Once they did, they shut down all external servers, except for e-mail — which it turns out the invaders were already using as their entrance point. By the end of July the invaders "had completely mapped out the topography of the bank's information systems," says one expert — "where everything was, the types of servers, and the types of files on the servers."

What the intruders did with all that information is the World Bank's most sensitive and painful mystery. It has clearly left the institution in a highly vulnerable position.

And the same may go for bank president Zoellick. Bank insiders say that he needs desperately to get the security of his own house in order. Despite the vast sums that the Bank spends on data and data storage, its information systems are deeply in disarray.

Today the total cost to maintain the bank's information infrastructure is at least $280 million per year. But according to one disgruntled bank staffer, "We don't even have an internal search engine that works."

The truly alarming fact, however, is that someone — or many people — seem to know their way around the bank's most valuable resource very well, even though they aren't supposed to be there at all.



http://www.foxnews.c...,435681,00.html

World Bank Under Cyber Siege in 'Unprecedented Crisis'

Friday , October 10, 2008

By Richard Behar

AThe World Bank Group's computer network — one of the largest repositories of sensitive data about the economies of every nation — has been raided repeatedly by outsiders for more than a year, FOX News has learned.

It is still not known how much information was stolen. But sources inside the bank confirm that servers in the institution's highly-restricted treasury unit were deeply penetrated with spy software last April. Invaders also had full access to the rest of the bank's network for nearly a month in June and July.

In total, at least six major intrusions — two of them using the same group of IP addresses originating from China — have been detected at the World Bank since the summer of 2007, with the most recent breach occurring just last month.

In a frantic midnight e-mail to colleagues, the bank's senior technology manager referred to the situation as an "unprecedented crisis." In fact, it may be the worst security breach ever at a global financial institution. And it has left bank officials scrambling to try to understand the nature of the year-long cyber-assault, while also trying to keep the news from leaking to the public.

The crisis comes at an awkward moment for World Bank president Robert Zoellick, who runs the world's largest and most influential anti-poverty agency, which doles out $25 billion a year, and whose board represents 185 member nations. This weekend, the bank holds its annual series of meetings in Washington — and just in advance of those sessions, Zoellick called for a radical revamping of multilateral organizations in light of the global economic meltdown.

Zoellick is positioning himself and the bank as an institution that can help chart a new path toward global financial stability. But that reputation, more than ever, depends on the bank's stable information infrastructure.

The fact that the information vaults of the World Bank have been repeatedly pried open won't help Zoellick's case.

While it remains unclear how much data has been pilfered from the bank, it's a lot. According to internal memos, "a minimum of 18 servers have been compromised," including some of the bank's most sensitive systems — ranging from the bank's security and password server to a Human Resources server "that contains scanned images of staff documents."

One World Bank director tells FOX News that as many as 40 servers have been penetrated, including one that held contract-procurement data.

Despite the gravity of the break-ins, the bank is trying hard to pretend to outsiders it didn't happen. "There were attempts to hack the bank's computer systems last summer," says a World Bank spokesman. "However, there was no compromise of confidential information." Requests for on-the-record interviews with Zoellick and other top officials were declined.

Meanwhile, the bank's treasurer, Kenneth G. Lay, has been briefing Zoellick's senior management team regularly on the situation since April.

Other bank officials are also sleuthing. The bank's chief information officer, Guy De Poerck, has engaged Price Waterhouse Coopers to do a confidential million-dollar assessment that is expected to tell him what's going on in his own department. And a 22-page internal report by a computer security company named MANDIANT, dated August 18, fleshes out many details of the June-July breaches. But very few people have ever seen the report, and nobody has been permitted to retain a paper copy.

At the same time, De Poerck has been downplaying the problem to the bank's 10,000 rank-and-file staffers as mere intrusion "attempts" in his e-mails. Yet most of those staffers have been asked to change their password three times in the past three months.

"As previously reported in mid-July," CIO De Poerck and a senior bank treasury official wrote in an August announcement to employees, "we would like to reassure you that there is no evidence that Bank staff personal information is at risk from the recent external attempts."

It's unclear how that statement squares with an internal memo to De Poerck a month earlier revealing that a sensitive Human Resources server "that contains scanned images of staff documents" had been successfully breached. De Poerk declined to comment to FOX News about any of these details.

In reality, the situation is serious enough that federal investigators have been called in. "We're not talking about hackers playing games or messing up our website," insists a senior member of the bank's IT department at its Washington headquarters. "It's about the FBI coming last summer and saying, 'You should take a look at your systems because we think something weird is going on.' It's about the intruders knowing what information they wanted — and getting to it whenever they wanted to. They took our existing data stores and organized them in a way that they could be easily accessed at will."

In plainspeak: "They had access to everything," says the source. "They had the keys to every room at the bank. And we can't say whether they still do or don't until we fully and openly address what's happening here."

The data raids are not a matter of stealing inconsequential bits and bytes. The World Bank's data center is literally a treasure trove of vital financial information from around the globe. As a clearinghouse for financial data from both governments and companies, the bank's computers could provide intruders with both a financial and intelligence gold mine — from inside information on bids and contracts to the minutes of confidential board meetings.

If the bank takes a position in a currency, for example, that currency usually moves in response to the bank's actions. Stocks and bonds can also swing up and down based on World Bank announcements. "If you know beforehand that the bank is going to put an order in for oil pipelines in Chad or healthcare systems in India, you can actually make a good amount of money," says one insider.

Although the bank typically provides only a fraction of the financing for a project, its influence on those projects is immense. Private corporations see the bank's stamp of approval as a guarantee that their own larger investments will be safe — and profitable. Knowing in advance what projects the bank's board will reject could be just as profitable.

Some insiders fear that contractors — perhaps even governments — might be seeking advance knowledge on the status of the bank's anti-corruption probes. "The bank knows the books of countries almost as well as the countries do — including the corruption at times," says one insider.

The first breach of the bank's secrets was discovered in September, 2007, after the FBI —while at work on a different cybercrime case — notified the bank that something was wrong. The feds pointed to a part of the bank's network that led out of the Johannesburg hub of the International Finance Corp. (IFC), a bank arm that lends to the private sector.

Within a week of the tip, teams of bank investigators sent to Johannesburg discovered that intruders had gained full and total access to all of IFC's worldwide information — including all incoming and outgoing e-mail — for at least six months. "They were downloading everything and anything," says one insider, who says that IFC's monitoring systems were extremely weak. "They [intruders] had full access."

Investigators discovered that the intruders were using a so-called "cluster" of IP addresses from Macao, China. But since those addresses can be spoofed (i.e., disguised) the discovery doesn't prove that the breaches actually originated in China. Nonetheless, bank officials and its executive director for China clashed behind closed doors over whether or not China's government is involved in the break-ins.

Bank sources tell FOX News that Johannesburg is one of several secret "hubs" containing a "common data store" (or CDS) that the World Bank Group has established around the globe. In layman's terms, a CDS is the cyber-world's version of a bomb shelter where every piece of an organization's data is replicated and backed up in case of a data-wipeout at headquarters in Washington. While it's known that IFC data was accessible at the hub, it remains unclear if all World Bank Group data was compromised there.

The second major breach — of the bank's treasury network in Washington — was discovered in April 2008. The World Bank's Treasury manages $70 billion in assets for 25 clients — including the central banks of some countries. It carries out substantial collaborations with the world's finance ministers on public wealth and debt management, runs an active bond-trading desk in Washington, and does everything from currency trading to capital markets financings.

After a forensic analysis of the treasury breach, bank investigators discovered that spy software was covertly installed on workstations inside the bank's Washington headquarters — allegedly by one or more contractors from Satyam Computer Services, one of India's largest IT companies.

The software — which operates through a method known as keystroke logging — enabled every character typed on a keyboard to be transmitted to a still-unknown location via the Internet.

Upon its discovery, insiders report, bank officials shut off the data link between Washington and Chennai, India, where Satyam has long operated the bank's sole offshore computer center responsible for all of the bank's financial and human resources information.

Satyam was also banned from any future work with the bank. "I want them off the premises now," Zoellick reportedly told his deputies. But at the urging of CIO De Poerck, Satyam employees remained at the bank as recently as Oct. 1 while it engaged in "knowledge transfer" with two new India-based contractors.

Satyam — one of the largest and most prestigious IT companies in India — is publicly listed on the NYSE and boasts having $2 billion in sales and more than 150 Fortune 500 companies as clients. In 2003, Satyam — it means "truth" in Sanskrit — won a much-heralded and lucrative five-year "sole source" contract to design, write and maintain all of the World Bank's information systems.

The contract — which began at $10 million and grew to more than $100 million by 2007 — was suddenly not renewed this year. Satyam so far declines to comment.

Then came the June-July breaches in Washington. They were similar to the Johannesburg attack, as the same group of IP addresses from Macao were used.

This time, however, the cyber-burglars used a different spyware. They broke into an external server run by the bank's private sector development unit. They were able to acquire passwords — including the password for the systems administrator.

That enabled them to jump into the servers at MIGA, the bank's giant insurance arm. It was there that they captured the security administrator's password as he was logging on to his computer.

It took ten days for bank officials to detect that they'd been invaded. Once they did, they shut down all external servers, except for e-mail — which it turns out the invaders were already using as their entrance point. By the end of July the invaders "had completely mapped out the topography of the bank's information systems," says one expert — "where everything was, the types of servers, and the types of files on the servers."

What the intruders did with all that information is the World Bank's most sensitive and painful mystery. It has clearly left the institution in a highly vulnerable position.

And the same may go for bank president Zoellick. Bank insiders say that he needs desperately to get the security of his own house in order. Despite the vast sums that the Bank spends on data and data storage, its information systems are deeply in disarray.

Today the total cost to maintain the bank's information infrastructure is at least $280 million per year. But according to one disgruntled bank staffer, "We don't even have an internal search engine that works."

The truly alarming fact, however, is that someone — or many people — seem to know their way around the bank's most valuable resource very well, even though they aren't supposed to be there at all.


What I find most disturbing about this whole sordid story is that PriceWaterhouse Cooper is the one carrying out the investigation for the Banks Information Chief Guy De Poerck.PriceWaterhouse Cooper just happen to be the same outfit bankrolling Clintons "Progressive Global Governance Network".How strange is that, as well as the fact South Africas President is involved with the same network and the South African hub is claimed to have played a big part in the World Bank breach.
Who would benefit by knowing in advance what countries are being investigated for corruption or which country is going to devalue its dollar and when.
People such as Soros (democracy alliance)and these global govt networks would have immense power and would certainly be well placed to take advantage of a global financial crisis. Peculiar isn`t it how the worlds credit markets are all frozen.
Sorry about the balls up with the reply.


The deathbed of Capitalism

I dare anyone to read this article and not feel angry.

Take care

#60 NBT Truth

NBT Truth

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Posted 27 October 2008 - 08:22 PM

You are right of course Adonaicole ,but then the forces at work here ,namely the neo,quasi and crypto communists know this only too well.As Markolinux earlier post says we are right in the middle of a massive psychological warfare information effort, all made so much easier now that the mainstream media all produce waht can only be called churnalism, journalism is a long forgotten art.
The trouble is the west have had an information war waged on them for so long the people have been turned into a parrotlike instrument of the left, most ordinary folk are like the nodding nod you see in the back window of a car,we are told who to vote for ,who to believe, what to say ,what to think, the enemy really hasn`t left anything to chance.It is fair to say the west has allowed our countrys to be turned into reeducation camps of leftist groupthink.I guess this is what happens when we choose the path of serfdom,socialism and all the other contagious diseases of the mind attributable to the Left.

Here in NZ we have been brainwashed to believe everything bad happening economically can all be blamed on those bad Americans, so you can see we are being prepared psychologically for the end of America, this will be happpening everywhere else in the English speaking world.It is too hard for people to think for themselves anymore when they have had some insipid highbrow halfwit on television doing it for them for so long.Besides all this how could our economies problems be our own faultless socialist govts fault, NZers are the only ones in the world that know how to run the world.Things aren`t helped either by the fact that the media love to portray Americans as overweight and lower than average IQ, this is done to make us feel superior in some way I spose.We haven`t been to the mooon ,you have ,the Chinese are only in space cos of all the high tech they stole from you, yet our media portray China as some sort of miracle because they are in space.It is all so suicidal ,it is impossible to believe these people are even sane.

Take care.


Read this, and you can blame the Europeans as well. :(

Now we know why the Russians got out of eastern Europe. Financially speaking, it's a black hole.

http://www.telegraph...s-meltdown.html


Europe on the brink of currency crisis meltdown
By Ambrose Evans-Pritchard
Last Updated: 10:52AM GMT 26 Oct 2008

The financial crisis spreading like wildfire across the former Soviet bloc threatens to set off a second and more dangerous banking crisis in Western Europe, tipping the whole Continent into a fully-fledged economic slump.

Currency pegs are being tested to destruction on the fringes of Europe’s monetary union in a traumatic upheaval that recalls the collapse of the Exchange Rate Mechanism in 1992.

This is the biggest currency crisis the world has ever seen,” said Neil Mellor, a strategist at Bank of New York Mellon.

Experts fear the mayhem may soon trigger a chain reaction within the eurozone itself. The risk is a surge in capital flight from Austria – the country, as it happens, that set off the global banking collapse of May 1931 when Credit-Anstalt went down – and from a string of Club Med countries that rely on foreign funding to cover huge current account deficits.

The latest data from the Bank for International Settlements shows that Western European banks hold almost all the exposure to the emerging market bubble, now busting with spectacular effect.

They account for three-quarters of the total $4.7 trillion £2.96 trillion) in cross-border bank loans to Eastern Europe, Latin America and emerging Asia extended during the global credit boom – a sum that vastly exceeds the scale of both the US sub-prime and Alt-A debacles

Stephen Jen, currency chief at Morgan Stanley, says the emerging market crash is a vastly underestimated risk. It threatens to become “the second epicentre of the global financial crisis”, this time unfolding in Europe rather than America.

Austria’s bank exposure to emerging markets is equal to 85pc of GDP – with a heavy concentration in Hungary, Ukraine, and Serbia – all now queuing up (with Belarus) for rescue packages from the International Monetary Fund.

Exposure is 50pc of GDP for Switzerland, 25pc for Sweden, 24pc for the UK, and 23pc for Spain. The US figure is just 4pc. America is the staid old lady in this drama.

Amazingly, Spanish banks alone have lent $316bn to Latin America, almost twice the lending by all US banks combined ($172bn) to what was once the US backyard. Hence the growing doubts about the health of Spain’s financial system – already under stress from its own property crash – as Argentina spirals towards another default, and Brazil’s currency, bonds and stocks all go into freefall.

Broadly speaking, the US and Japan sat out the emerging market credit boom. The lending spree has been a European play – often using dollar balance sheets, adding another ugly twist as global “deleveraging” causes the dollar to rocket. Nowhere has this been more extreme than in the ex-Soviet bloc.

The region has borrowed $1.6 trillion in dollars, euros, and Swiss francs. A few dare-devil homeowners in Hungary and Latvia took out mortgages in Japanese yen. They have just suffered a 40pc rise in their debt since July. Nobody warned them what happens when the Japanese carry trade goes into brutal reverse, as it does when the cycle turns.

The IMF’s experts drafted a report two years ago – Asia 1996 and Eastern Europe 2006 – Déjà vu all over again? – warning that the region exhibited the most dangerous excesses in the world.

Inexplicably, the text was never published, though underground copies circulated. Little was done to cool credit growth, or to halt the fatal reliance on foreign capital. Last week, the silent authors had their moment of vindication as Eastern Europe went haywire....