Uncle Sam should Claw back Wall Street Bonuses

Warren Buffett famously called the derivatives that were concocted, peddled and held by Wall Street firms “financial weapons of mass destruction.” Now these weapons have exploded, putting the economy at risk of a meltdown. The Bush administration is putting together a $700 billion taxpayer-financed plan to bail out Wall Street firms and, it is hoped, avoid a larger economic disaster. At this point, there is still considerable opposition to such a package in Congress.

Assuming such a plan is passed however, some of this taxpayer money may go to the very Wall Street executives who got us into the mess. True, the rescue plan attempts to restrict – and limit the tax-deductibility of – executive compensation in bailed-out firms. However, history has shown that these kinds of restrictions are easily circumvented and ultimately hurt public shareholders without putting much of a dent in executive pay.

A much bigger problem is that Wall Street executives can keep the large profits they pocketed from the reckless business decisions that made the bailout necessary in the first place. Over the last two years, Wall Street financiers took home more than $60 billion in bonuses, much of it in cash. Lehman Bros. alone shelled out almost $6 billion in bonuses in 2007 before recently filing for bankruptcy. The rescue plan’s restrictions, even if they affect executives’ post-bailout pay, leave these massive pre-bailout wealth transfers completely untouched.

The government should make a serious effort to “claw back” at least part of the bonuses paid to Wall Street executives before the meltdown. The cost of cleaning up Wall Street’s debacle must not fall entirely on taxpayers’ shoulders; those who profited from the derivatives casino should directly chip in. Clawing back executives’ bonus pay will also make future decision-makers think twice before taking similar financial gambles, reducing the likelihood that another generation of Americans will be asked to bail out Wall Street.

The challenge is finding legal authority to recover premeltdown bonuses. Compensation contracts rarely require executives to return already-paid bonuses, even if the decisions made while “earning” these payments ruin the firm. The Sarbanes Oxley Act, passed after a series of major corporate accounting scandals less than 10 years ago, permits the government to recover certain bonus payments, but only under very narrow circumstances that may not exist here. And while the federal Bankruptcy Code contains several provisions that could be used to recover prebankruptcy payments to executives, most of the bailed-out firms appear unlikely to file for bankruptcy. Finally, any attempt to pass new legislation that would retroactively recoup these payments would face substantial constitutional obstacles.

However, if the federal government becomes a creditor of the bailed-out firms, it may find legal authority to claw back Wall Street executives’ bonuses in New York state’s “fraudulent conveyance” statute. Fraudulent conveyance law, which has its origins in 16th century Elizabethan England, allows creditors of a financially troubled firm, even one that has not filed for bankruptcy, to recover certain payments to shareholders and other insiders, including executives. Despite its name, fraudulent conveyance law does not require a creditor to prove actual intent to defraud creditors. A bonus payment to a Wall Street executive could be recovered, for example, if the government shows that the paying firm (1) did not receive fair consideration for the bonus and (2) at the time had unreasonably small capital for its business operations.

Showing that there was no “fair consideration” is likely to be relatively easy. Courts have held that managerial services (especially when they result in a firm’s failure) do not constitute fair consideration. The second requirement -”unreasonably small capital” – could pose a bigger obstacle. The government must show that at the time a particular bonus was paid the firm had too little capital to conduct its business. But because many of these firms were on the verge of failure less than a year after bonuses were doled out, a court may be willing to find that these firms were undercapitalized when executives received these payments.

Will the federal government be able to use fraudulent conveyance law to recover bonuses paid to Wall Street executives before the meltdown? We won’t know for sure until the government litigates these cases. But trying to recoup these payments is the least the government can do for taxpayers – both those on the hook for a $700 billion rescue plan and those who may be asked to fund a future bailout.

Jesse Fried teaches bankruptcy and corporate law at UC Berkeley School of Law and is co-author with Lucian Bebchuk of “Pay Without Performance: The Unfulfilled Promise of Executive Compensation” (Harvard University Press, 2004).

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Published in:  on September 30, 2008 at 4:08 am Comments (2)
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Bank Bailouts in Europe

Bank Bailouts Come to Europe

September 29, 2008

The rush to save four banks signals a more aggressive policy stance. But Europe’s many regulators will make it tough to form a coherent strategy

by Mark Scott

In a stunning series of moves engineered over the weekend and announced Sept. 29, six European governments are collectively committing nearly $150 billion to rescue four troubled financial institutions. Coming on the back of the U.S.’s $700 billion toxic mortgage bailout plan (BusinessWeek.com, 9/28/08), which was thrashed out over the weekend but defeated in a surprise vote Sept. 29, the move likely foretells a more proactive approach among European politicians and regulators to combating threats to the EU economy.

With their high-profile moves to save Britain’s Bradford & Bingley (BB.L), Belgium’s Fortis (FOR.BR), Germany’s Hypo Real Estate Group (HRXG.DE), and Iceland’s Glitnir Bank government officials are changing the rules of the game in Europe. Until now their primary policy response has been to inject billions into the Continent’s credit markets via central banks—but rarely to intervene on behalf of specific troubled institutions. Now policymakers in the EU and its member states are signaling a more aggressive stance that mirrors the speed of U.S. actions.

“The entire financial system was coming under pressure, so of course European governments had to get involved,” says Richard Portes, president of the Centre for Economic Policy Research in London. “The situation was becoming untenable; they had to respond immediately.”

Saving Bradford & Bingley

The largest deal involves British mortgage lender Bradford & Bingley, whose shares have plunged 93% in the past year on concerns about its loan portfolio. Unlike in late 2007, when the British government dithered over plans to rescue ailing mortgage lender Northern Rock, regulators moved swiftly this time to nationalize Bradford & Bingley’s £50 billion ($90 billion) in loans. At the same time, Spain’s Banco Santander (STD) will pay $1.1 billion to assume Bradford & Bingley’s 197 branch offices and £20 billion ($38 billion) in customer deposits.

Just across the English Channel, policymakers in Benelux spent the weekend hammering out a very different rescue package for banking giant Fortis, whose operations are concentrated in the Low Contries. The bank, one of the three institutions that took over and carved up Dutch investment bank ABN Amro earlier this year, saw its shares plunge 35% last week alone on concerns it was overleveraged from the $34.5 billion it spent on the deal.

With Fortis nearing paralysis, regulators devised a plan to partly nationalize it. The governments of Belgium, the Netherlands, and Luxembourg each will buy 49% stakes in local Fortis subsidiaries, for a combined price of €11.2 billion ($16.2 billion). Fortis also will sell its share of ABN Amro, which it bought alongside consortium partners RBS (RBS) and Santander, and write down a further $7.2 billion of assets. Wire services reported on Sept. 29 that the most likely buyer for the ABN Amro assets is the Netherlands’ ING Group (ING.AS)—no doubt for a price well below what Fortis paid.

While both Bradford & Bingley and Fortis were publicly suffering in recent weeks and days, a bigger surprise emanated from Germany the morning of Sept. 29: the sudden rescue of Munich-based commercial real estate lender Hypo Real Estate Group, whose business model had relied heavily on borrowing money in the now-frozen wholesale capital markets.

Germany’s central bank organized a $50 billion state-backed credit line, $12 billion of which will come from local banks and the rest from the government—and taxpayers.

Iceland Takes Over Glitnir

Even as investors were busy digesting all that news, word came of yet another national bailout: Moving to prevent a collapse of the country’s third-largest bank, Glitnir, the government of Iceland said it would spend $865 million for a 75% stake. The takeover is intended to be only temporary.

In a statement, Glitnir said its funding position had deteriorated in just a matter of days. “The events unfolding in international financial markets in the past two weeks have had unforeseen consequences, drastically changing the conditions of Glitnir’s short-term funding,” the bank said. News of the takeover sent the Icelandic crown plunging to a fresh low against the euro.

These aggressive government actions may not be the end of the line if the credit crisis claims other European institutions. According to analysis by Standard & Poor’s, Deutsche Bank (DB) and Dresdner Bank—a unit of Allianz (AZ) that is being acquired by Commerzbank (CBKG.DE)—are the most vulnerable among German banks due to their continued heavy exposure to volatile capital markets.

Britain’s RBS, whose shares fell 13% on Sept. 29, might have to write down a further $14 billion related to its portion of the ABN Amro carve-up. Shares in Belgium’s Dexia (DEXB.BR) plunged nearly 30% on Sept. 29 on concerns over its health. And Switzerland’s UBS (UBS), the European bank most affected by the subprime crisis (BusinessWeek.com, 8/12/08), continues to suffer from a decline in its investment banking operations and weakened customer confidence that has hurt its wealth-management business.

While it’s still unlikely that Europe would see a coordinated, Continent-wide bailout on the scale of the proposed U.S. plan, market watchers reckon tighter financial regulations and stricter bank lending practices soon will be introduced at the European Commission. Only last week, French President Nicolas Sarkozy—currently the head of the EU—called for more global regulation (BusinessWeek.com, 9/25/08), adding the financial industry had “perverted the fundamentals of capitalism.”

“Too Many Chefs”

With domestic populations fearful of pending recession and already suffering from soaring food and energy prices, European politicians are scrambling to respond more publicly when banks get in trouble. But the fragmented nature of the European Union and its financial institutions make it more difficult than in the U.S. to put forward a coherent strategy.

For one thing, Europe has relatively weak central regulators—including a central bank whose mandate is more tightly proscribed than the Fed’s—and dozens of national regulators who continue to exert control over their domestic financial-services sectors. “In Europe, there are too many chefs in the kitchen, all with different economic proposals and no concerted voice speaking for them,” says Kully Samra, British director for stockbroker Charles Schwab (SCHW) in London.

Any pan-European strategy to deal with the Continent’s growing financial woes (BusinessWeek.com, 8/6/08) also must tackle the diverging economic problems facing different countries in the EU. According to Morgan Stanley (MS) estimates, the euro zone’s GDP growth will be halved next year, to 1.3%. This reflects deteriorating housing markets in Spain and Ireland, a manufacturing and export downturn in Germany, and an overextension of credit in Italy and Greece.

According to Pete Hahn, a fellow at City University’s Cass Business School and a former managing director at Citigroup (C), each problem requires individual solutions that could be difficult to include in an EU-wide package. “It’s not going to be a one-size-fits-all deal,” he says. “The incredible multitude of regulators involved will make any European strategy a tough proposition.”

Despite the difficulties inherent in any government-backed bailout of Europe’s financial-services industry, politicians may have little choice but to inject taxpayer dollars into struggling banks. British, Benelux, German, and Icelandic authorities have blazed a path with their rapid interventions. It may represent just the start of European attempts to stave off a Continent-wide recession.

With reporting from Kerry Capell in London and Jack Ewing in Frankfurt

Consumers to foot bill for Bradford & Bingley bailout in higher bank charges

September 30, 2008

Bank charges and insurance premiums are set to rise after high street banks and insurers were ordered to pay up to £14 billion under the terms of Bradford & Bingley’s nationalisation.

Some analysts suggested that the bailout could hasten the end of free banking for current account customers as banks attempt to pass on the cost to their customers.

All banks face huge increases in the levy they pay to the deposit lifeboat, the Financial Services Compensation Scheme, after it borrowed £14 billion from the Government to underwrite Bradford & Bingley deposits transferred to Banco Santander.

Banks and building societies will be asked to chip in £900 million a year just to pay the interest on the bill. That works out at more than £100 million each for large banks such as Royal Bank of Scotland and Barclays.

“The banks will be in a militant mood after this,” Alex Potter, a banking analyst with Collins Stewart, said. They had already had their arms twisted by regulators to support an earlier £400 million capital raising by Bradford & Bingley last month.

Stephen Hadrill, head of the Association of British Insurers, said that premiums would have to go up. “Insurers are livid at the way that this has been handled. If it’s going to fall on the companies in due course, insurers are going to have to try to find that money from somewhere,” he said.

The anger erupted after the Government confirmed yesterday that it was nationalising the bulk of Bradford & Bingley, seizing £50 billion of assets and bankrolling the Financial Services Compensation Scheme. Banco Santander, the Spanish bank that owns Abbey, has bought the £20 billion deposit business and the network of 200 branches.

The remaining assets and liabilities of the former building society, including its £41 billion mortgage book, personal loan book, Yorkshire headquarters, treasury assets and wholesale liabilities, will be taken into public ownership by the transfer of all shares to the Treasury, Alistair Darling said.

Shareholders look likely to be almost entirely wiped out, although the Treasury is expected to appoint an independent valuer to set compensation, if any. Trading in the shares, which last changed hands at 20p on Friday, was suspended.

The victims include more than 800,000 Bradford & Bingley customers who received free shares when Bradford & Bingley became a listed company in 2000.

Branches opened normally yesterday under Santander. Borrowers were urged to continue making their repayments in the normal way.

The Chancellor disclosed that the immediate cost to taxpayers would be a £4 billion payment to Abbey together with the £14 billion loan to the Financial Services Compensation Scheme.

The Government had acted on the advice of the Bank of England and the Financial Services Authority, “to maintain financial stability and protect depositors, while minimising the exposure to taxpayers”, the Treasury said.

The Financial Services Authority, which supervises British banks, concluded on Saturday that Bradford & Bingley no longer met threshold conditions for operating as a deposit taker, the Treasury said. “Savers’ money remains absolutely secure,” it added.

The nationalisation could push government borrowing this year to levels not seen since the mid-Nineties, adding to the possibility of huge tax rises after the next general election.

The Treasury insists that it expects to recoup all, or the vast bulk, of the £18 billion paid directly, and indirectly via the Financial Services Compensation Scheme, to Santander within months rather than years, through disposal of Bradford & Bingley assets. The Government has first call on this money as it becomes available.

While most of the £18 billion may well be recovered, the exposure nevertheless adds to already intense stress on the Government’s finances.

The £4 billion paid directly to Santander will have to be added to total government borrowing for 2008-09 – already set to soar far above the Chancellor’s £43 billion forecast as the downturn hits tax revenues. Officials remain uncertain whether the £14 billion transferred to Santander through the compensation scheme also count against borrowing but admit that it may have to. The decision will rest with the Office for National Statistics.

Even before the latest costs, economists expected public borrowing to climb to as much as £60 billion.

The initial impact of Bradford & Bingley may now drive this to £78 billion, which would put the Government’s deficit at more than 5 per cent of GDP. In future years, the Treasury will have to add to its borrowing the cost of any defaults on Bradford & Bingley mortgages. With £1.3 billion worth of Bradford & Bingley’s £41 billion in mortgages already in arrears, those losses could pile up quickly as the housing market slumps and unemployment rises.

Eventually, with the Government so deep in the red, taxes will have to rise to bring down public borrowing to more manageable levels.

In the meantime, Bradford & Bingley’s debts will add to those of Northern Rock in swelling the national debt, lifting this by a further £30 billion or so, Capital Economics estimates.

The impact is likely to push total debt up to some 45 per cent of GDP – smashing the 40 per cent ceiling imposed by the Treasury, which looks set to be formally abandoned by Mr Darling in his autumn PreBudget Report.

Banco Santander will strengthen its position among the giants of British savings and mortgages, becoming No 3 in savings, outsized by the planned Lloyds TSB/HBOS combination and Royal Bank of Scotland. Thanks to the acquisitions of Abbey and Alliance & Leicester, it is No 2 in mortgages, with 13 per cent of the home loans market. It will have 1,300 branches under the Abbey, Alliance & Leicester and Bradford & Bingley brands and will employ 23,000 people in Britain. Yesterday it declined to rule out job losses or branch closures, though none was planned immediately.

Related Links

‘Bradford & Bingley gambled our cash’

Property’s new owners likely to lose a billion

Bradford & Bingley Is Seized; Santander Buys Branches (Update4)

By Poppy Trowbridge and Ben Livesey

Sept. 29 (Bloomberg)

Bradford & Bingley Plc, the U.K.’s biggest lender to landlords, was seized by the government after the credit crisis shut off funding and competitors refused to buy mortgage loans that customers are struggling to repay.

Banco Santander SA, Spain’s biggest lender, will pay 612 million pounds ($1.1 billion) for Bradford & Bingley’s 197 branches and 20 billion pounds of deposits, the company said in a statement today. The Santander, Spain-based bank said it also got 18 billion pounds to insure those deposits.

“The bank’s deposit base has value in this market, but you’d have to have a different name over the door,” said Alex Potter, a London-based banking analyst at Collins Stewart Plc.

Bradford & Bingley became the second British bank after Northern Rock Plc to be nationalized this year as survivors of the global credit crunch balk at swallowing all the risks facing weaker competitors. Governments around the world are stepping in to prevent bank failures, with regulators in Belgium, the Netherlands and Luxembourg injecting 11.2 billion euros ($16.3 billion) to save Fortis. Regulators in the U.S. seized Washington Mutual Inc. on Sept. 26 and sold assets to JPMorgan Chase & Co.

The U.K. Treasury will take over Bradford & Bingley’s 41 billion pounds in mortgage loans. In return, the government gets rights to any gains as the bank sells off assets, including personal loans and its headquarters in Bingley, England.

`Biggest Challenge’

“The biggest challenge for the U.K. government will be to manage the bank’s bad loans,” said Leigh Goodwin, a London-based analyst a Fox-Pitt Kelton Ltd. “Nobody else wanted the mortgage assets, which is not a good sign for the sector.”

Compensation rules in the U.K. mean other financial firms will have to cover Bradford & Bingley’s 14 billion-pound insurance policy to protect depositors. A short-term loan from the Bank of England will initially cover the amount falling on the banks.

Santander will pay the additional 4 billion pounds to protect deposits over the 35,000 pound maximum amount covered by the U.K. regulator’s compensation plan.

Bradford & Bingley is the second U.K. lender to fall under Santander, which become the country’s second biggest mortgage lender and third-biggest deposit holder. Santander agreed to buy Leicester, England-based Alliance & Leicester Plc for 1.26 billion pounds in July following its 2004 takeover of Abbey National for 9.2 billion pounds. It now has almost 1,300 U.K. branches and control about 10 percent of consumer deposits.

Cancelled Shares

About half of Bradford & Bingley’ employees will be moved to Santander under the deal, Chancellor Alistair Darling to told the BBC in an interview today.

Santander fell 4.2 percent to 10.46 euros in Madrid, giving the bank a market value of 65.4 billion euros, the second biggest in Europe after HSBC Holding Plc.

Bradford & Bingley’s shares were cancelled in London before the market opened today.

The credit crunch made it impossible for Chief Executive Officer Richard Pym, 59, to fund Bradford & Bingley’s lending. Deposits at the bank amounted to slightly more than half of loans outstanding, which forced it to depend on now-frozen capital markets. Pym will run the bank as public ownership begins, the U.K. Treasury statement said.

Britain’s Financial Services Authority determined Sept. 27 that Bradford & Bingley didn’t meet the minimum requirements as a deposit taking bank. The Treasury, Bank of England and FSA said they took immediate action “to maintain financial stability and protect depositors while minimizing the exposure to taxpayers.” Any payoff for shareholders will be determined in “due course,” the government said.

`Wiped Out’

“In a nationalization, shareholders get wiped out,” Potter said. “That’s just the risk investors take.”

Bradford & Bingley was the smallest of four British building societies that transformed themselves from customer-owned lenders to publicly traded mortgage specialists as Britain’s housing market boomed. It was created in the 1964 merger of the Bradford Equitable Building Society and the Bingley Building Society, both established in 1851.

The combined company sold shares on the London Stock Exchange in December 2000 and had a market value of 3.2 billion pounds as recently as March 2006. This year, the shares plunged 93 percent to 20 pence on Sept. 26, reducing Bradford & Bingley’s market value to 289 million pounds, even after raising 400 million pounds in its third attempt to replenish capital.

Bradford & Bingley tried to survive by slashing new loans and said last week it would fire 370 mortgage advisers to save about 15 million pounds a year.

Not Enough

The measures weren’t enough to entice other banks to take on Bradford & Bingley’s mortgage business. Falling home price and rising unemployment in Britain have pushed up late mortgage payments to more than 2 percent of its loans. That compares with the U.K. average of 0.5 percent, according to the Council of Mortgage Lenders.

Almost half of Bradford & Bingley’s 42 billion pounds of loans went to landlords, bringing its share of the U.K. buy-to-let market to 19 percent. Arrears on loans to buyers who rent out their properties rose from 0.73 percent at the end of 2007 to 1.1 percent by June 30, according to the council.

About 17 percent of the bank’s loans went to customers whose incomes weren’t verified. They typically have a higher level of default than standard borrowers. Bradford & Bingley’s bad debts in the first half jumped to 74.6 million pounds from 5.3 million pounds last year.

Northern Rock

U.K. officials tried for most of the year to prevent Bradford & Bingley from becoming the next Northern Rock, which ran out of funding and triggered the first bank run in more than a century in September 2007. It had about 113 billion pounds of assets before it borrowed about 24 billion pounds in emergency funds from the Bank of England.

Northern Rock, based in Newcastle, England, was nationalized in February and got an additional 3.4 billion pounds from the government last month after late loan payments rose to 1.2 percent amid the U.K.’s steepest decline in house prices since 1992.

The U.K. avoided nationalization of HBOS Plc, the country’s biggest mortgage lender. It waived antitrust restrictions on Sept. 18 to get Lloyds TSB Group, the U.K.’s largest provider of checking accounts, to buy HBOS in a stock swap valued at about 12 billion pounds. HBOS CEO Andy Hornby agreed to sell after concluding the credit crisis “will be with us for some time.”

Buyers increasingly are waiting as long as they can before agreeing to purchase assets from struggling financial firms.

`Hardball’

Barclays Plc, Britain’s third-largest bank, abandoned talks to buy all of Lehman Brothers Holdings Inc. less than 24 hours before the investment bank filed for bankruptcy on Sept. 15. A day later, Barclays agreed to buy parts of its U.S. businesses for $1.75 billion.

Washington Mutual Inc., the 119-year-old Seattle-based bank, became the biggest U.S. lender to fail when it filed for bankruptcy protection Sept. 26. JPMorgan Chase & Co. purchased its branches and assets for $1.9 billion without taking on any of its liabilities.

“Banks have learned to play hardball,” Potter said. “They have learned to circle a potential acquisition and return when the value’s at its lowest.”

To contact the reporter for this story: Poppy Trowbridge in London at ptrowbridge@bloomberg.net; Ben Livesey in London blivesey@bloomberg.net

Published in:  on September 29, 2008 at 11:09 pm Comments Off
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FEDERAL RESERVE OWNERS AND HISTORY

FEDERAL RESERVE OWNERS


Here’s a look into who was involved in setting up the Federal Reserve in 1913.

* Rothschild Banks of London and Berlin
* Lazard Brothers Bank of Paris
* Israel Moses Sieff Banks of Italy
* Warburg Bank of Hamburg, Germany and Amsterdam
* Kuhn Loeb Bank of New York
* Lehman Brothers Bank of New York
* Goldman Sachs Bank of New York
* Chase Manhattan Bank of New York (Controlled By the Rockefeller Family Tree)

Charles A. Lindbergh, Sr. 1913 “When the President signs this bill, the invisible government of the monetary power will be legalized….the worst legislative crime of the ages is perpetrated by this banking and currency bill.”

A Bit of History

In August of 1929, the Fed began to tighten the money supply continually by buying more government bonds. At the same time, all the Wall Street giants of the era, including John D. Rockefeller and J.P. Morgan divested from the stockmarket and put all their assets into cash and gold.

Soon thereafter, on October 24, 1929, the large brokerages all simultaneously called in their 24 hour “call-loans.” Brokers and investors were now forced to sell their stocks at any price they could get to cover these loans. The resulting market crash on “Black Thursday” was the beginning of the Great Depression.

The Chairman of the House Banking and Currency Committee, Representative Louis T. Mc Fadden, accused the Fed and international bankers of premeditating the crash. “It was not accidental,” he declared, “it was a carefully contrived occurrence (created by international bankers) to bring about a condition of despair…so that they might emerge as rulers of us all.”

He went on to accuse European “statesmen and financiers” of creating the situation to facilitate the reacquisition of the massive amounts of gold which Europe had lost to the U.S. during WWI. In a 1999 interview, Nobel Prize winning economist and Stanford University Professor Milton Friedman stated: “The Federal Reserve definitely caused the Great Depression.”

US DECLAIRED bankruptcy

Because the government of the U.S. (a corporation) had paid its loans to the Fed with real money exchangeable for gold, it was now insolvent and could no longer retire its debt. It now had no choice but to file chapter 11. Under the Emergency Banking Act (March 9, 1933, 48 Stat.1, Public law 89-719) President Franklin Roosevelt effectively dissolved the United States Federal Government by declaring the entity bankrupt and insolvent.

June 5, 1933 Congress enacted HJR 192 which made all debts, public or private, no longer collectible in gold. Instead, all debts public or private were to be payable in un-backed Fed-created fiat currency. This new currency would now be legal tender in the U.S. for all debts public and private.

Henceforth, our United States Constitution would be continuously eroded due to the fact that our nation is now owned “lock stock and barrel,” by a private consortium of international bankers, contemptuous of any freedoms or sovereignties intended by our forefathers. This was all accomplished by design.

How the Gold was Stolen from America

Under orders of the creditor (the Federal Reserve System and its private owners) on April 5, 1933 President Franklin D. Roosevelt issued Presidential order 6102, which required all Americans to deliver all gold coins, gold bullion, and gold certificates to their local Federal Reserve Bank on or before April 28, 1933.

Any violators would be fined up to $10,000, imprisoned up to ten years, or both for knowingly violating this order. This gold was then offered by the Fed owners to any foreign, non-U.S. citizen, at $35.00 per ounce. Over the entire previous 100 years, gold had remained at a stable value, increasing only from $18.93 per ounce to $20.69 per ounce.

Since then, every U.S. citizen (by virtue of their birth certificate) has become an asset of the government, pledged at a specific dollar amount to pay this debt through future taxation. Thus, every American citizen is in debt from birth (via future taxation), and is, for all practical purposes, property of the creditors, the privately owned Federal Reserve System.

Presently, the United States Government (which again, is completely owned and controlled by the international bankers) continues to forfeit its sovereignty by entering into international monetary and trade agreements which abolish almost all forms of trade tariffs that previously protected not only the value of American commercial productivity and workforce labor, but which were also a substantial source of revenue for the government.

The loss of this revenue, as well as the expanding deficits created by recent massive reduction in taxation for large corporations and the very wealthiest citizens, insures continued borrowing by the government. This self-perpetuating cycle of borrowing is made possible only by the ability of the government to guarantee repayment (of only the interest, never the principal) through future taxation on the earnings of every American citizen.

Due to our banking history of deception, fraud and counterfeiting, which only benefits the purported elite bankers and their underlings, the borrowed principal itself is being used to make the payments on our debt at interest, thus, it is mathematically impossible to pay off.

We are, therefore, obligated to continue this cycle of borrowing indefinitely, causing complete money slavery for life. The amount owed will expand endlessly, until our monthly payments exceed our income, we are bankrupt, and all we have acquired in this lifetime is pillaged from us. Or, until the privately owned Federal Reserve System is ended and all debts are terminated.

This IS WAY Custsy

BANKING SECRETS THAT BANKS DON’T WANT PUBLISHED

With debt termination/debt reconciliation, you’re out of credit card debt and unsecured loans quickly and easily, once and for all! Here, you will learn the the violations that occur in the issuance of credit cards and loans, plus a touch of the legalities employed in terminating your debts. After qualifying and receiving a telephone presentation, you’ll concur that this is the safest, fastest, most legal, lawful, honest and ethical way of getting out of debt there ever was.

Through extensive research and development by economists, bankers, bank auditors, CPA’s, attorneys, underwriters, authors, and database programmers, we have developed a state-of-the-art legal administrative remedy, designed to anticipate and overcome nearly every variation of creditor response.

The successful termination of your debt also includes all-inclusive Credit Clean-Up of the accounts enrolled. Utilizing these abundant resources, we can work toward the termination of your debt within 18 months, with a much lower monthly payment, ending with nothing negative on your credit report.

With the immeasurable assistance and response from consumers nationwide, combined with our passion to do whatever it takes to neutralize this iniquity, our highly effective, proprietary system, and network of highly capable attorneys, will never cease to improve. The laws described below are the foundation of this process.

Your debt termination relies on applying Federal Laws, U.S. Supreme Court decisions, the Fair Debt Collection Practices Act, the Fair Credit Billing Act, the Uniform Commercial Code, the Truth in Lending Act, and numerous other banking and lending laws – to overcome the following banking practices…

Banks bombard consumers with over 6 billion mail solicitations each year. Notwithstanding newspaper, radio, television, magazine, sporting event advertising and numerous other forms of marketing, the average working class, credit-worthy, American is exposed to over 75 loan solicitations per year.

These banking ads represent, in one way or another, that the bank will lend you money in exchange for repayment, plus interest. This absurd idea is completely contrary to what, in reality, transpires and what is actually intended. In actual fact, banks do not lend you any of their own, or their depositors money.

False advertising is an act of deliberately misleading a potential client about a product, service or a company by misrepresenting information or data in advertising or other promotional materials. False advertising is a type of fraud and is often, a crime.

To substantiate this premise, we will begin by examining the funding process of credit cards and loans. When you sign and remit a loan or credit card application, (say you are approved for $10,000.00) the commercial bank stamps the back of the application, as if it were a check, with the words: “Pay $10,000.00 to the order of…” which alters your application, transforming it into a promissory note.

Altering a signed document, after the fact with the intention of changing the document’s value, constitutes forgery and fraud. Forgery is the process of making or adapting objects or documents with the intent to deceive. Fraud is any crime or civil wrong perpetuated for personal gain that utilizes the practice of deception as its principal method.

In criminal law, fraud is the crime or offense of deliberately deceiving another, to damage them – usually, to obtain property or services without compensation. This practice may also be referred to as “theft by deception,” “larceny by trick,” “larceny by fraud and deception” or something similar.

Having altered the original document, the (now) promissory note is deposited at the local Federal Reserve Bank as new money. Generally Accepted Accounting Principels (the publication governing corporate accounting practices) states: “Anything accepted by the bank as a deposit is considered as cash.” This new money represents a three to ten percent fraction of what the commercial bank may now create and do with as they please.

So, $100,000.00 to $330,000.00.00, minus the original $10,000.00 is now added to the commercial bank’s coffers. With this scheme they are taking your asset, depositing it, multiplying it and exchanging it for an alleged loan back to you. This may constitute deliberate theft by deception. In reality, of course, no loan exists.

At this point in the process, they have now transferred and deposited your note (asset) to the Federal Reserve Bank. This note will permanently reside and be concealed there. Since they’ve pilfered your promissory note, they owe it back to you. It is you, therefore, who is actually the creditor. This deceptive acquisition and concealment of such a potentially valuable asset amounts to fraudulent conveyance.

In legal jargon, the term “fraudulent conveyance” refers to the illegal transfer of property to another party in order to defer, hinder or defraud creditors. In order to be found guilty of fraudulent conveyance, it must be proven that the intention of transferring the property was to put it out of reach of a known creditor – in this case, you.

Once they have perpetrated this fraudulent conveyance, the creditor then establishes a demand deposit transaction account (checking account) in your name. $10,000.00 of these newly created/acquired funds are then deposited into this account. A debit card, or in this case, a credit card or paper check is then issued against these funds. Remember – it’s all just bookkeeping entries, because this money is backed by nothing.

Money laundering is the practice of engaging in financial transactions in order to conceal the identity, source and/or destination of money. Previously, the term “money laundering” was applied only to financial transactions related to otherwise criminal activity.

Today, its definition is often expanded by government regulators (such as the United States Office of the Comptroller of the Currency) to encompass any financial transactions which generate an asset or a value as the result of an illegal act, which may involve actions such as tax evasion or false accounting.

As a result, the illegal activity of money laundering is now recognized as routinely practiced by individuals, small or large businesses, corrupt officials, and members of organized crime (such as drug dealers, criminal organizations and possibly, the banking cartel).

Since receipt of your first “statement” from each of your creditors, they have perpetuated the notion of your indebtedness to them. These assertions did not disclose a remaining balance owed to you, as would your checking account. Mail fraud refers to any scheme which attempts to unlawfully obtain money or valuables in which the postal system is used at any point in the commission of a criminal offence.

When they claim you owe a delinquent payment, you are typically contacted via telephone, by their representative, requesting a payment. In some cases this constitutes wire fraud, which is the Federal crime of utilizing interstate wire communications to facilitate a fraudulent scheme.

Throughout the process of receiving monthly payment demands, you may have been threatened with late fees, increased interest rates, derogatory information being applied to your credit reports, telephone harassment and the threat of being “wrongfully” sued.

Extortion is a criminal offense which occurs when a person obtains money, behavior, or other goods and/or services from another by wrongfully threatening or inflicting harm to this person, their reputation, or property. Refraining from doing harm to someone in exchange for cooperation or compensation is extortion, sometimes euphemistically referred to as “protection”. This is a common practice of organized crime groups.

Blackmail is one kind of extortion – specifically, extortion by threatening to impugn another’s reputation (in this case) by publishing derogatory information about them, true or false, on credit reports. Even if it is not criminal to disseminate the information, demanding money or other consideration under threat of injury constitutes blackmail.

New money was brought into existence by the deposit of your agreement/promissory note. If you were to pay off the alleged loan, you would never receive your original deposit/asset back (the value of the promissory note). In essence, you have now paid the loan twice. Simultaneously, the banks are able to indefinitely hold and multiply the value of your note (by a factor of 10 to 33) and exponentially generate additional profits.

For an agreement or a contract to be valid, there must be valuable consideration given by all parties. Valuable consideration infers a negotiated exchange and legally reciprocal obligation. If no consideration is present, the contract is generally void and unenforceable.

The bank never explained to you what you have now learned. They did not divulge that they were not loaning anything. You were not informed that you were exchanging a promissory note (which has a real cash value) that was appropriated to fund the implicit loan.

You were led to assume that they were loaning you their own, or other people’s money, which we have established as false. They blatantly concealed this fact. If you were misinformed, according to contract law, the agreement is null and void due to “non-disclosure.”

Contract law states that when an agreement is made between two parties, each must be given full disclosure of what is transpiring. An agreement is not valid if either party conceals pertinent information.

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Any President that Would Dare Oppose The Federal Reserve Gets Assassinated: History Lesson & JP Morgan Buyout of Bear Stearns

Article Source

Somewhere in the trillionaires room of Heaven three old codgers are sitting around a table smoking cigars and chuckling over the J. P Morgan Chase & Company buyout of Bear Stearns for a paltry $2.00 a share. Not so much because the price had been over $130 a share a few weeks earlier but because the Federal Reserve Board put up $30 billion of the government’s money to guarantee the sale.

Yes, Mayer Amschel Rothschild, J. P. Morgan and John D. Rockefeller, patriarchs of three of the most powerful family fortunes in history have waited nearly two centuries to see their dreams fulfilled. Perhaps such patience is why their families have remained successful by steadfastly maintaining the rules of the game as set down by their founders.

It was 248 years ago, in 1760 that Mayer Amschel Rothschild created the House of Rothschild that was to pave the way for international banking and control of the world’s resources on a scale unparalleled and somewhat mysterious to this date. He disbursed his five sons to set up banking operations throughout Europe and the various European empires.

“Give me control of a nation’s money
and I care not who makes the laws.”
Mayer Amschel Rothschild

In time the House of Rothschild was able to take control of the Bank of France and Bank of England and relentlessly pursued an effort over two centuries to control a national bank in the USA. By 1850 it was said the Rothschild family was worth over $6 billion and owned one half of the world’s wealth.

From oil (Shell) to diamonds (DeBeers) to gold (from 1919 until 2004 a Rothschild was permanent Chairman of the London Gold Fixing committee which met twice a day in the Rothschild offices in London) the Rothschild’s quietly accumulated a foothold in critical industries and commodities throughout the world.

A master at building impenetrable walls around his family assets the current value of the Rothschild holdings are estimated to be between $100 and $300 trillion, yes that is trillion dollars! Now for a point of reference the current United States National Debt is $9.4 trillion.

J. P. Morgan began as the New York agent for his father’s business in London in 1860 and by 1877 was floating $260 million in US Bonds to save the government from an economic collapse. In 1890 he inherited the business and in 1895 bought $200 million in US Bonds with gold to again save the US economy.

“If you have to ask how much it costs,
you can’t afford it.”
J. P. Morgan

By 1912 he controlled $22 billion and had started companies such as US Steel and General Electric while he owned several railroads. Morgan was also an American agent for the House of Rothschild in London and used the Rothschild resources to help people like John D. Rockefeller.

Rockefeller, who started Standard Oil in 1863 with the help of Morgan, grew his company into the largest oil company in the world and by 1916 Rockefeller was the first billionaire in American history. In 1909 he had set up the Rockefeller Foundation with $225 million and donated nearly a billion more dollars to various causes. The Rockefeller family fortune is estimated to be around $11 trillion today.

“The way to make money is to buy
when blood is running in the streets.”
John D. Rockefeller

So what did they have in common these extraordinary capitalists? They all were dedicated to owning a national bank in America so they could determine the fiscal policies of the nation and earn interest on the debt of the nation.

Rothschild agents in 1791 formed the First Bank of the United States but intense opposition to foreign ownership by President Jefferson and others helped kill it by 1811. A Second Bank of the United States was formed in 1816 once again by Rothschild agents and this time they secured a 20-year charter. However, President Andrew Jackson was also opposed to foreign ownership and withdrew the federal deposits in 1832 as part of his plan to kill the bank charter in 1836.

An attempt to assassinate Jackson in 1834 left him wounded but more determined than ever to stop the central bank. Thirty years later President Lincoln refused to pay international bankers extremely high interest rates during the Civil War and ordered the printing of government bonds. With the help of Russian Czar Alexander II who also blocked a similar national bank from being set up in Russia by the international bankers they were able to survive the economic squeeze.

Lincoln said, “The money powers prey upon the nation in times of peace and conspire against it in times of adversity. The banking powers are more despotic than a monarchy, more insolent than autocracy, more selfish than bureaucracy. They denounce as public enemies all who question their methods or throw light upon their crimes. I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe. Corporations have been enthroned, and an era of corruption in high places will follow. The money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until the wealth is aggregated in the hands of a few, and the Republic is destroyed.”

Both Lincoln and Alexander II were assassinated. In 1881 James Garfield became president and he was dedicated to restoring the right of the federal government to issue money like Lincoln did in the Civil War and he was also assassinated.

Finally along came 1913 and the US was again suffering from a weak economy and there was a threat of another costly war, a world war this time, and business tycoons J.P. Morgan, John D. Rockefeller and E.H. Harriman were part of a group that got Woodrow Wilson to sign into law the Federal Reserve Act creating a network of 12 privately owned banks as part of a new Federal Reserve network.

One of the largest stockholders in the new Federal Reserve was the House of Rothschild through their direct and indirect holdings. A few years later it was disclosed that the Rothschilds also owned about 20% of J. P. Morgan. In time Morgan would merge with the Chase Manhattan Bank of the Rockefellers.

Years later John F. Kennedy opposed a private national bank and was assassinated in 1963 and Ronald Reagan opposed a private national bank and in 1981 an attempt was made to assassinate him. Coincidence or not the opposition to a privately owned national bank was a common characteristic.

Which brings us full circle to the present bailout of Bear Stearns by J.P. Morgan Chase & Company and we find the Rothschild, Morgan and Rockefeller families are all conveniently part of the same group benefiting from the bailout and the $30 billion guarantee by the Federal Reserve. This is the third time the J. P. Morgan Company has come to the rescue of the American banking system and economy.

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THE ROYAL Bank of Scotland will get ‘billions’ in US bail-out of economy

RBS will get ‘billions’ in US bail-out of economy
Scottish bank benefits if plan gets green lightBy Ian Fraser

THE ROYAL Bank of Scotland is to be one of the biggest beneficiaries of the planned $700 billion bail-out that comes courtesy of the American tax-payer if the US Congress gives the financial rescue package the go-ahead this weekend.

The bank’s share of the bail-out will enable RBS to offload billions of dollars of questionable assets.

The bank’s shares closed last Friday at 205p, a 71% fall from their pre-credit-crunch peak. However, analysts and investors predict that the shares will rebound sharply when markets open on Monday morning if the bail-out is approved over the weekend.

The Edinburgh-based bank will be able to write off a significant portion of its dodgy assets thanks to the bail-out, also known as into Tarp, the Troubled Asset Relief Programme as a result of the bank’s significant presence in the US.

Tarp was the brainchild of US treasury secretary Hank Paulson, who earlier this week got down on his knees and begged Nancy Pelosi, the Democratic House speaker, to rescue his plan to save Wall Street.

The Royal Bank, led by chief executive Sir Fred Goodwin, has had operations in the United States since 1988, when it bought the Rhode Island-based Citizens Bank. It has since bulked up its presence there with a string of acquisitions including those of Connecticut based Greenwich NatWest and Ohio-based Charter One.

This entitles the Scottish bank to entrust billions of dollars of non-performing loans and sub-prime tainted assets to US taxpayers, according to Colin McLean, chief executive of Edinburgh-based SVM Asset Management.

He could not quantify the exact amount of dodgy assets that RBS can offload but said it could amount to “billions”. In total, RBS has outstanding loans of $1.5 trillion.

Sunday Herald

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Tragedy in the Making in Washington and on Wall Street: The Canadian Solution

By Rodrigue Tremblay

“When troubles come, they come not single spies, but in battalions.” – Shakespeare (1564-1616)

The liberty of a democracy is not safe if the people tolerate the growth of private power to the point where it becomes stronger than the democratic state itself. That in its essence is fascism — ownership of government by an individual, by a group or any controlling private power.”  Franklin D. Roosevelt (1882-1945), 32nd US president

“Our economy is facing a moment of great challenge. … We’re in the midst of a serious financial crisis.” – George W. Bush, September 24, 2008

The Washington gridlock about finding a solution to the subprime financial crisis in the United States is turning into a tragedy, seemingly because of a fundamental lack of understanding and communication about the causes of this financial crisis and the most efficient way to solve it. The nature of the crisis, the economic consequences if it is not solved, and how it could be solved without costing the government and U.S. taxpayers a single penny has not been properly explained to Congress and to the U.S. population.

Indeed, in this election period, there is a clear danger that the financial crisis is not going to be solved properly by the U.S. government and by Congress, and that there will be dire economic consequences in the months and years ahead, not only for the United States but also for the world economy. A similar subprime crisis has been solved in Canada, without costing the government and Canadian taxpayers a single cent. Although such a solution, i.e. transforming most of the subprime mortgage-back securities into medium term debentures, would have to be adapted to the peculiar American situation, this can be done.

The Canadian solution

In August 2007, it was discovered that Canada, just as the U.S., had a subprime mortgage-backed securities problem. Since the Canadian economy is more than ten times smaller than the American economy, the magnitude of the problem was also smaller, but it was nevertheless acute.

Indeed, Canada’s subprime mortgage market was a smaller proportion of the total mortgage market than in the U.S. and mortgage defaults have not been as prevalent in Canada as in the United States. For instance, there has not been a housing bubble burst in Canada. Overall, risky mortgage-backed paper constituted, about 5 per cent of the total mortgage market, while in the U.S., subprime mortgage paper constitutes about 20 per cent of the total mortgage market, and mortgage defaults have been rising dramatically.

Nevertheless, there was some $32 billion (CAN) of non-bank asset-backed commercial paper in Canada. When this market became illiquid after August 2007, as a consequence of the global credit crisis that originated in the U.S., a restructuring committee was assembled in Canada by large pension plans, Crown corporations, banks and other businesses holding the bulk of $32 billion in non-bank asset-backed commercial paper (ABCP) in order to find a solution to the liquidity problem. (Large Canadian banks covered the asset-backed commercial paper that were on their books or in their money market funds). This was the Pan-Canadian Investors Committee for Third-Party Structured ABCP, chaired by a Toronto lawyer, Mr. Purdy Crawford, and created after a proposal that originated from the large Quebec pension fund, the Caisse de dépôt. This was the Montreal proposal.

The committee ended up proposing to restructure the frozen and illiquid securities into longer-term securities. It proposed that ABCP notes, initially intended as low-risk and short-term debt, be exchanged for new replacement notes or debentures that would not mature for years (seven or nine years) while earning interest originating from the underlying primary mortgages. The plan was approved by a Canadian court last June and is scheduled to close by September 30, after Canada’s Supreme Court refused to hear an appeal against the plan.

The plan was designed to prevent a forced a fire sale of the asset-backed paper and to restore confidence in the Canadian financial system, especially in the money market funds. And it did all that without the government risking a penny of taxpayers’ money.

Of course, those entities that had invested in what they believed to be liquid and relatively high-yield 30- to 90-day debt instruments had to accept new notes maturing within nine years, but most of them thought that this was better than the alternative of outright liquidation. Those investors can hold the newly-issued notes to maturity or they can try to trade them in the secondary market. A market for asset-backed securities was thus indirectly created where none existed before.

What lesson can be drawn for the current U.S. predicament?

The U.S. Problem: Real danger of a cascading debt-deflation spiral

The financial crisis is much more severe and much more widespread in the U.S. than in Canada. Therefore, a large scale Canada-like solution would have been, most likely, unrealistic. Could hundreds of American banks and pension funds get together to restructure the illiquid mortgage-backed paper? This is doubtful.

However, the principles behind the Canadian solution can be retained and the mortgage-backed securities could be restructured into longer-term securities carrying interest. But because of the size and complexity of the American financial system, this would have to involve the U.S. government as an intermediary.

In the U.S., for example, the mortgage market (residential and commercial) is about $14 trillion, that is a size equal to the annual gross domestic product (GDP). Overall, the U.S.’s total interest-bearing debts are now a staggering $51 trillion (consumer, corporate and government debt), that is to say a level of total debt more than three and a half times the annual GDP. For decades in the past, the ratio of debt to GDP was about 1.0. This shows the extent of American current over-indebtedness.

In the short run, however, there are two urgent problems faced by the U.S. economy that must be solved with as little economic perturbation as possible.

First, there is the most urgent problem of solving the overhang of illiquid mortgage-backed securities which were created as the equivalent of liquid commercial paper. They must be urgently aligned more closely with the more long term mortgages downstream they are based on. Since much of this illiquid mortgage-backed paper is found in the $4 trillion money market funds market, there was and there still is the danger of a run on such funds in the coming days and weeks if investors fear for the safety and liquidity of their balances. A collapse of the market in money market funds would be equivalent to the banking collapse of the 1930’s, since this is where companies park most of their required cash flows in the short run.

The second American financial problem is related to the approximately $2.7 trillion in municipal securities outstanding, a large proportion of which have been relying on a bond insurance system that is teetering on the brink of collapse. The U.S. Treasury partly solved this problem temporarily when it announced on Tuesday, September 16, that it had loaned $85 billion (for two years) to the largest world insurance company, American International Group (AIG), in exchange for a 79.9 percent stake in the company, thus avoiding a formal bankruptcy filing for AIG. This was, of course, after announcing that the U.S. Treasury promised to inject some $200 billion in the government sponsored Fannie Mae and Freddie Mac in preferred shares, in order to solidify their mortgage lending operations and their $5.3 trillion joint debt.

The Bush administration’s proposal to create a fund of $700 billion to buy back illiquid mortgage-backed paper does not seem to have been structured in a manner that would avoid an outright subsidy to the American banking sector. If it were to be used to recapitalize private banks, this amount would be too small. This need not be. In fact, much of the legitimate fear that many Americans have that large amounts of public money are going to be used to subsidize Wall Street firms can be avoided, and the amount required to restructure the subprime-based securities market could be considerably reduced.

Indeed, there is a way for the U.S. Treasury to play an intermediary role in restructuring most of the illiquid mortgage-backed paper that creates so many problems today, not the least would be the possible collapse of large segments of the U.S. financial system.

Since time is of the essence, Congress could approve the creation of a U.S Government Banking Restructuring Trust, designed to exist for a twelve-year maximum period, that is, until 2020. Such a government trust could buy back, at a fair market value (including a substantial discount to reflect poor liquidity and poor marketability), illiquid but still solvent mortgage-backed securities, held by banks or money market funds.

Simultaneously, the government trust would have the power to reissue mortgage-backed debentures with a maturity of nine years or less and carrying interest financed by the underlying mortgages thus acquired, and in an amount large enough to cover at least the initial cost of acquisition. The Fed and its twelve regional banks, plus Fannie Mae and Freddie Mac, could play an important role in creating a liquid secondary market for such government-backed securities. Because of this reissuance feature, the $700 billion guarantee initially proposed by Sec. Henry Paulson could be reduced, possibly to a more palatable level of $250 billion.

Such an operation would relieve the U.S. banking system from short-term mortgage-backed securities that are presently de facto frozen, because there is no market for them. It would also allow American savers and investors to include in their IRAs or 401(k) plans safe and profitable investments. Moreover, it would provide capital to the mortgage market and help turn the housing slump around.

And, what’s more, such a debt restructuring operation need not cost the government and American taxpayers a single penny, in the end. To the contrary, the program can be structured in such a way as to generate a fair return on the government’s initial investment.

Simultaneously, a regulatory ban on the issuance of any new securitized mortgage-backed paper could be issued. The same could apply also to the dangerous practice of elevating the credit rating of certain bonds or debentures through reliance upon the credit-default (insurance) market. These were the two main corrosive “innovations” which have resulted in the present financial mess.

Moreover, such a restructuring plan could be kept simple and totally transparent.

In conclusion, this is something that the Bush administration and the U.S. Congress might want to consider if they hope to get out of the ideological and political deadlock they have talked themselves into.

Rodrigue Tremblay is professor emeritus of economics at the University of Montreal and can be reached at: rodrigue.tremblay@ yahoo.com. He is the author of the book ‘The New American Empire’. Visit his blog site at www.thenewamericanempire.com/blog. Author’s Website: www.thenewamericanempire.com/. Check Dr. Tremblay’s coming book “The Code for Global Ethics” at:   www.TheCodeForGlobalEthics.com/

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Bank-Rescue Plan Is Under Review by U.S. Lawmakers (Update2) and (Update 3)

Bank-Rescue Plan Is Under Review by U.S. Lawmakers (Update2)

By Alison Vekshin and Laura Litvan

Sept. 28 (Bloomberg) — U.S. lawmakers are reviewing a tentative agreement to revive credit markets by authorizing a $700 billion plan to buy troubled assets from financial institutions.

“The deal is done,” Senator Judd Gregg, a New Hampshire Republican, a ranking member of the Budget Committee, said this morning. The House and Senate may vote tomorrow, Gregg said.

Republican House members want to see the compromise proposal written into legislation before making a final decision to support it, said Representative Eric Cantor of Virginia.

“We’re waiting to see what this looks like on paper to see if we have an agreement,” Cantor said.

Some House lawmakers expressed doubts about the plan. “It does not do what the American people are asking us to do, which is to protect their taxpayer dollars,” said Republican Representative Darrell Issa of California.

Still, Representative James Clyburn of South Carolina, the No. 3 ranked House Democrat, said that while lawmakers haven’t yet been surveyed, he’s “feeling good” about the plan’s chance to win approval.

The negotiations were completed about midnight when lawmakers agreed to require the president to offer a plan to recoup any loss to the taxpayers after five years, said a Democratic congressional aide. That clause was intended to address concerns about the cost of the program.

Angry Emails

The agreement alters the Bush administration’s original request for unchecked authority to purchase distressed debt securities from financial companies reeling from the record number of home foreclosures. That plan evoked a blizzard of emails and phone calls from voters outraged at being asked to foot the bill for the mistakes of Wall Street investors.

During weeklong negotiations, lawmakers reduced the initial cost by half to $350 billion, with the remainder to be authorized later, and they added provisions creating an oversight structure and help to homeowners facing foreclosure.

The compromise also includes a proposal by House Republicans, whose objections scuttled an earlier agreement in principle, that provides for government insurance for mortgage- backed securities. The plan also imposes limits on the compensation of executives at participating companies.

“It will be the first time in American history that there will be legislative restrictions on CEO compensation,” said House Financial Services Chairman Barney Frank, Democrat of Massachusetts.

Asian Markets

Lawmakers want to announce a firm agreement before the Japanese stock market opens at 8 p.m. Washington time. The deadline reflects concern that markets will be further rocked by lack of an agreement after the Standard & Poor’s 500 index recorded its largest weekly drop since May.

Treasury Secretary Paulson last night said the proposed deal “will work and be effective.” More work needs to be done, “but I think we’re there,” he said.

Paulson and Federal Reserve Chairman Ben S. Bernanke proposed the plan after the collapse and bankruptcy of Lehman Brothers Holding Inc. and the Federal Reserve’s takeover of American International Group Inc. earlier this month. They said it was needed to revive lending and restore the flow of credit to the U.S. economy.

President George W. Bush warned yesterday that legislative action was needed to avoid a “deep and painful recession.”

Bush spokesman Tony Fratto said early this morning that administration officials are “pleased with the progress tonight and appreciate the bipartisan effort to stabilize our financial markets and protect our economy.” He said Bush had spoken last night with House Speaker Nancy Pelosi on the negotiations.

President’s Request

The proposal immediately provides $250 billion, and another $100 billion could be used at the request of the president. Congress would have to review the expenditure of the remaining $350 billion, according to an outline distributed to reporters.

The package includes a provision aimed at “preventing golden parachutes” for executives of companies who leave firms that have sold troubled assets to the government, said Senator Kent Conrad, a North Dakota Democrat.

Companies that sell debt to the government will issue stock warrants to the government so that taxpayers “can gain as companies recover” from economic difficulties, Conrad said.

House Republicans initially balked at the cost of Paulson’s plan. Missouri Representative Roy Blunt, the lead negotiator for House Republicans, said his colleagues wanted to “bring both free-market principles and taxpayer protections to the table.”

“I think we will be able to have an announcement” later today, Blunt said.

Shareholder Votes

Republican leadership aides said that provisions favored by unions that own significant stakes in companies through pension plans were dropped. That includes a requirement for shareholder votes on executive-compensation issues.

At one point during the negotiations, billionaire Warren Buffett spoke by telephone to a lawmaker involved in the talks to offer “his best thinking about market reaction to various things,” said Conrad. “People are trying to reach out to the best minds that they know.”

Presidential candidates Barack Obama and John McCain backed the compromise.

“My inclination is to support it,” Obama, a Democrat, said on CBS’ “Face the Nation.”

Obama said the agreement reflects his core concerns by putting limits on executive compensation, providing congressional oversight and protecting taxpayers.

McCain urged lawmakers to “swallow hard” and support the proposal in an interview today on ABC’s “This Week” program.

“Let’s get this deal done, signed by the president, get moving,” McCain, a Republican, said. “It’s going to restore confidence and get some credit out there, get this economic system moving again, which is basically in gridlock today.”

To contact the reporters on this story: James Rowley in Washington at jarowley@bloomberg.netAlison Vekshin in Washington at avekshin@bloomberg.net

Lawmakers Say They Have Breakthrough on Rescue Plan (Update3)

By James Rowley and Alison Vekshin

Sept. 28 (Bloomberg) — U.S. lawmakers said they made a breakthrough in talks on a $700 billion plan to revive the credit markets and expect to announce an agreement on legislation later today.

Negotiators resolved “our differences so we can go forward with a package to stabilize the market,” House Speaker Nancy Pelosi told reporters when talks at the Capitol ended after midnight Washington time. Lawmakers will review a written version of the plan later today, she said. The House may vote tomorrow.

The plan would let the Treasury begin purchasing distressed debt securities from financial companies affected by the record number of home foreclosures.

After five years, if there was a net loss to taxpayers, the president would have to submit a plan to Congress to recoup the funds, according to an outline circulated by congressional aides.

The proposal also includes accountability provisions, limits on executive pay for participating companies, and foreclosure relief, said Senate Banking Committee Chairman Christopher Dodd, a lead negotiator.

Senate Majority Leader Harry Reid, a Nevada Democrat, sought an agreement to reassure investors before Asian financial markets open late today.

Effective in Marketplace

Treasury Secretary Henry Paulson said the proposed deal “will work and be effective” in the marketplace. More work needs to be done, “but I think we’re there,” he said.

Paulson and Federal Reserve Chairman Ben S. Bernanke said the rescue plan was necessary to revive lending and restore the flow of credit to the U.S. economy. President George W. Bush warned yesterday that legislative action was needed to avoid a “deep and painful recession.”

Bush spokesman Tony Fratto said early this morning that administration officials are “pleased with the progress tonight and appreciate the bipartisan effort to stabilize our financial markets and protect our economy.” He said Bush had spoken last night with Pelosi on the negotiations.

Lawmakers had resisted giving Paulson unrestricted power to buy the debt and sought controls to assuage angry constituents who bombarded congressional offices with e-mails and phone calls.

`Don’t Want’ Bailout

Voters “don’t want a bailout of Wall Street and neither do we,” Democratic Senator John Kerry of Massachusetts told reporters yesterday. “What we are talking about is not losing 3 million jobs in a matter of weeks” and helping “small banks and small businesses literally keeping their doors open.”

Senator Kent Conrad, a North Dakota Democrat who chairs the Budget Committee, said $250 billion would be immediately available and another $100 billion could be used when requested by the president for debt purchases. Congress could bar the expenditure of the remaining $350 billion only by passing a resolution to block it from being spent.

The package includes a provision aimed at “preventing golden parachutes” for executives of companies who leave firms that have sold troubled assets to the government, Conrad said.

Stock Warrants

Companies that sell debt to the government will issue stock warrants to the government so that taxpayers “can gain as companies recover” from economic difficulties, Conrad said.

The plan also includes a proposal by House Republicans, whose objections scuttled an earlier agreement in principle, that provides for government insurance of mortgage-backed securities. Paulson has opposed the idea and has testified it wouldn’t work.

The measure leaves it up to Treasury how to “structure the program and they will assure that the premiums will be set at a level that fully protects the taxpayers of the country,” Conrad said.

“We worked out everything,” said Senator Judd Gregg, a New Hampshire Republican. He said lawmakers still want to see the text of the accord on paper before announcing a final deal.

“If there are no adjustments” to that “we’ll be all set,” he said.

Missouri Representative Roy Blunt, the lead negotiator for House Republicans, voiced satisfaction for his colleagues who were “very concerned that we would be able to bring both free- market principles and taxpayer protections to the table.”

House Republicans “will be looking at the final wording of this,” he said. Still, “I think we will be able to have an announcement” later today, Blunt said.

At one point during the negotiations billionaire Warren Buffett spoke by telephone to a lawmaker involved in the talks to offer “his best thinking about market reaction to various things,” Conrad said. “People are trying to reach out to the best minds that they know.”

`Foreclosure Mitigation’

A proposal that would allow judges to modify mortgage terms for struggling borrowers in bankruptcy proceedings wasn’t included, said Dodd, a Connecticut Democrat. “We pushed very hard” for the bankruptcy provision, “but we feel we got good foreclosure mitigation language in there,” Dodd said.

Democratic presidential nominee Barack Obama said the plan “appears to embrace” his principles that the legislation include oversight by an independent board; protections for taxpayers to ensure they receive any profits; measures to help homeowners stay in their homes; and rules to make sure “CEOs are not being rewarded at taxpayers’ expense.”

Reid said an announcement would come later today after details are worked out.

Series of Breakthroughs

“There were a series of breakthroughs here in the end” and the agreement on executive compensation “was certainly the most important,” Conrad said. He declined to give further details because the language being drafted by lawyers is “quite complicated.”

“Get it written and get it voted,” said Gregg. “That’s the game plan.”

Paulson and Bernanke sought the rescue package after the collapse and bankruptcy of Lehman Brothers Holding Inc. and the Federal Reserve’s takeover of American International Group Inc. earlier this month.

Sticking Point

The House Republicans’ demand to include insurance for mortgage-backed securities was a major sticking point.

“Nationalizing every bad mortgage in America is a profoundly bad idea,” Indiana Republican Mike Pence said. He described the plan as “transferring $700 billion from Main Street to Wall Street.”

Premiums on the insurance would be a way “for those on Wall Street to help pay for the recovery” so that the financial industry won’t “just turn to taxpayers” for the rescue, said Virginia Republican Eric Cantor, a member of his party’s leadership in the House.

Democrats blamed Republican presidential candidate John McCain for encouraging the House Republicans’ rebellion by traveling to Washington last week to meet with them.

The trip also included a White House meeting on Sept. 25 with Bush and congressional leaders, where a bipartisan consensus on the outlines of a deal broke down.

McCain “only hurt this process,” Reid complained to reporters.

McCain’s close ally, South Carolina Republican Lindsey Graham, said the Arizona senator was “enormously helpful” to the talks when he met with House Republicans who were about to be “rolled” by the Senate.

McCain told them “I hear your message” so “let’s make the bill better, but let’s not go too far,” Graham told reporters.

To contact the reporters on this story: James Rowley in Washington at jarowley@bloomberg.netAlison Vekshin in Washington at avekshin@bloomberg.net

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Europe’s ‘last dictator’ set to reap rewards for courting the West

By Daniel McLaughlin in Minsk
Saturday, 27 September 2008

Relatives of Belarus’s disappeared dissidents, and beleaguered opposition parties, warn that the EU and US may temper criticism of a tightly-controlled general election in an attempt to woo President Alexander Lukashenko away from traditional ally Russia.

Belarus goes to the polls this weekned in an election that could see the West normalise its relations with the man dubbed “Europe’s last dictator”.

Keen to loosen Moscow’s grip on its neighbours after the war in Georgia, Brussels and Washington have discussed easing sanctions if the ballot is more free and fair than the others he has overseen during 14 years in power.

“Under the surface this election is as bad as the rest,” said Mrs Gonchar, who works for an opposition party. “If the West compromises with Lukashenko, it will be a very dangerous mistake.” Viktor Gonchar, a prominent critic of Mr Lukashenko, disappeared with businessman and ally Anatoly Krasovsky on 16 September 1999, after a visit to a sauna in the Belarusian capital, Minsk. Four months earlier in the city, Yuri Zakharenko, a former interior minister and leading Lukashenko opponent, vanished on his way home. In July 2000, the President’s former personal cameraman, Dmitry Zavadsky, went missing.

Belarus’ state security service, still called the KGB, claims to have investigated the fates of the men, to no avail.

However, two ex-KGB officers who fled to the US say the men were killed by a death squad created by officials close to Mr Lukashenko, who denies involvement in their disappearance.

“Zakharenko and Gonchar had the charisma, ability and popularity to be a serious threat to Lukashenko, and as a businessman Krasovsky could help them do it,” explained Oleg Volchak, a former police investigator and lawyer who has studied the case.

Regularly lambasted for fixing elections, harassing critics and crushing the media, Mr Lukashenko caught the eye of Western diplomats last month by resisting Russian pressure to recognise the rebel Georgian regions Abkhazia and South Ossetia and freeing three opponents from jail.

“This election is unprecedentedly free, run according to the rules of the West,” Mr Lukashenko said, before declaring: “If even this time the elections turn out to be ‘undemocratic’, we will halt discussions with the West.”

As proof of progress, Mr Lukashenko cites the 70 or so opposition candidates on the ballot and the presence of more than 450 observers from the Organisation for Security and Co-operation in Europe. The OSCE has criticised a paucity of media coverage for opponents of the regime, and parties critical of the President say their members are harassed, unfairly excluded from the ballot, prevented from holding effective meetings and denied access to the commissions that oversee the count.

An EU diplomat said sanctions could be eased next month if the election goes well, potentially allowing Belarus to benefit from the European Neighbourhood Policy, which offers funding and trade opportunities to non-members.

“There is realism that these elections will not be the acme of democracy,” the diplomat said. “But the EU response can be calibrated to reflect levels of freeness and fairness – as in how many officials come off the banned visa list and which benefits from the European Neighbourhood Policy are released.”

Such a scenario appals Aliaksandr Atroshchankau, an opposition activist.

“The EU can’t lift sanctions just as they start to deliver results,” he said.

“Rather than recognising rigged elections, the EU should push for talks between Lukashenko and the opposition. If the West says this farcical vote is good enough, Lukashenko will never change.”

The Independent

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Wall Street: Congress set for the $700bn bank job

After a week of dramas, horse-trading and hard negotiations, it looks as if Congress is at last on the brink of agreeing President Bush’s rescue plan. Stephen Foley and Rupert Cornwell report

Sunday, 28 September 2008

There has been too much false optimism and too many sudden turnabouts for anyone to feel confident promising it, but Congress appeared last night to be closing in on a compromise deal to bail out the country’s crumbling financial system.

At the end of a week of high political drama, when John McCain temporarily “suspended” his presidential campaign to focus on the issue, and amid more turmoil on the markets, including the biggest banking failure in US history, lawmakers signalled they were on course for a deal that they hoped to announce before the end of today.

As part of this delicate dance, George Bush made another attempt to sell the $700bn (£380bn) plan to a sceptical public, for whom funnelling so much taxpayer money to Wall Street has stuck in the craw – particularly since these super-remunerated financiers are the architects of their own misfortune and of the disaster potentially facing the economy.

“If it were possible to let every irresponsible firm on Wall Street fail without affecting your family, I would do it,” the President said in his weekly radio address to the public. “The rescue effort we are pursuing is not aimed at Wall Street, it is aimed at your street.”

Mr Bush also insisted that the ultimate cost of the bailout would be far from the $700bn headline figure, even if the government ended up spending every dollar of that buying mortgage assets from troubled banks. Amid the current market panic, those assets were going cheap, he said, and there was every chance the American taxpayer would make back “much, if not all” of the money when the housing market stabilised.

Despite the explosive rejection of an initial compromise by conservative Republicans in the House of Representatives on Thursday, the main proposals of the deal being hammered out by exhausted politicians and staffers over the weekend appeared little changed from those earlier in the week. Hank Paulson, the Treasury Secretary, appeared to have protected its core principle, namely that the US government must step in to buy the toxic mortgage assets that have been sitting on banks’ balance sheets for more than a year, limiting their scope to provide credit to an economy that runs on it and ultimately eroding confidence throughout the entire global financial system.

As a quid pro quo, banks that avail themselves of taxpayers’ money will have to submit to restrictions on executive pay and may have to offer the government equity in the company, so that taxpayers see some upside when the financial system revives. The Treasury has also conceded that the $700bn could be released to it in increments, if and when it is needed, with a bipartisan board overseeing the whole endeavour.

The 100-plus pages of the draft legislation being worked through on Capitol Hill last night is a far cry from the three pages delivered by Mr Paulson last weekend, which sparked fury because of the sweeping powers it would grant an administration that is one of the least trusted in history.

Despite Mr Paulson’s bruising session before the Senate Banking Committee on Tuesday, there was still every sign of a quick deal. Both sides had been galvanised into action by warnings, the previous Thursday, from both Mr Paulson and the normally unflappable Federal Reserve chairman Ben Bernanke that the financial system was on the edge of a precipice and there could be multiple bank failures within days if action was not taken.

Negotiations were intense and good spirited, offering hope of a solid bipartisan agreement until, shortly before 3pm on Wednesday, Mr McCain produced his coup de théâtre: he was suspending his campaign and returning to Washington, and would pull out of Friday night’s debate with Barack Obama, if no deal was reached. At that moment, efforts to end the greatest financial crisis in generations succumbed to bare-knuckle presidential politics.

Mr McCain’s move was plainly an attempt to regain the initiative in a crisis that had catapulted Mr Obama back into the lead – a Washington Post/ABC poll that morning showed the Democrat with a nine-point lead, his largest of the campaign. Now, if the McCain camp was to be believed, their man – who not long ago admitted that economics was not his strong suit – was the key to a deal.

Instead, everything fell apart. As Democrats tell it, Republicans in the House of Representatives cynically turned against a deal they were backing only 12 hours earlier. The White House talks became a virtual slanging match after John Boehner, the House minority leader, declared the package was unacceptable and came up with counterproposals of his own. President Bush was dismayed: “If money isn’t loosened up, this sucker could go down,” he warned the meeting. But this desperately unpopular President, with under four months left in office, is now so weak he could not control his own party, on his own turf.

Chris Dodd, the Democratic chairman of the Senate Banking Committee, was visibly furious, telling reporters that the new Republican stance was “not a rescue plan for our financial system, but a rescue plan for John McCain”. In fact, the rebels had reasons stretching beyond the salvation of their White House nominee. They had reservations all along, these Republicans claimed – and indeed, many are conservatives who object to the bailout on ideological grounds, as tantamount to socialism.

The most important factor, however, was public opinion. Out on Main Street America, in blue states as well as red, the $700bn bailout is even less popular than the President. Not only Mr McCain, but all 435 members of the House are up for re-election. “They simply have to take account of public opinion,” a Republican strategist said. And that applies to Democrats as well as Republicans. For that reason, Democrats will not pass the measure on their own, even though they have the majorities to do so.

The dissidents are playing a gigantic game of chicken with the markets. If bank credit clogs up and Wall Street crashes, public opinion could rapidly turn against them.

So far, the financial markets have remained remarkably patient. For a while share prices rose and fell with the prospects of the bailout’s passage, but eventually traders gave up trying to predict and decided to wait. Wall Street is ready to take its punishment from Congress – it will not squeal at the limits on executive pay, for example – but there is real fear these elements might be structured in a way that undermines the thrust of the bailout.

The devil really is in the detail. The aim of the legislation is to establish clarity about what the nation’s banks are worth so that confidence can be restored, capital can flow back to Wall Street, lending can cascade once more through the branches of those vast, obscure credit markets, and the risk of a freeze in the real economy will be eased. The market will give legislators a verdict, probably within hours of a compromise bill being published.

Mr McCain’s decision to inject himself directly into the crisis has been the riskiest gamble of all. A majority opposed his threat to miss the Mississippi debate, according to polls. Less than 48 hours later he made a U-turn and announced he would take part in the debate after all, even though deadlock remained in Washington. And for all the fanfare surrounding his arrival in the capital, his personal input into the rescue discussions is obscure.

At the White House meeting he said barely a word (while Mr Obama reportedly peppered Mr Paulson with questions). For Democrats, the whole manoeuvre was a stunt, an impulsive, ill-thought piece of grandstanding. If an effective deal is struck today, the whole episode may be forgotten. If the crisis drags on, however, Mr McCain’s behaviour will be seen by critics as further evidence he is an erratic politician, too rash and impetuous to be president. Mr Obama has been cool verging on bland. But at least he has come across as a safe pair of hands.

Q & A: How does the US Treasury aim to save Wall Street?

But what is it all about?

President Bush says the credit crunch means the US and other economies face a “long and painful recession” unless something is done immediately. Under the rescue plan, which must be passed by Congress, the government would buy troubled assets from Wall Street banks so that credit could start flowing again. But it would hand the US Treasury what Democrats and Republicans fear is a blank cheque.

Why is there a problem?

Banks and other financial institutions still hold too many “toxic assets” based on sub-prime mortgages (loans to people with poor credit ratings). The financial crisis has already seen a $200bn (£110bn) government bailout of the US mortgage lenders Fannie Mae and Freddie Mac, an $85bn loan to the US insurance giant AIG and a guaranteed $29bn to support the bailout of the investment bank Bear Stearns.

What’s in the bailout plan?

It includes:

* Troubled Assets Relief Programme (Tarp) to purchase assets including mortgage-backed securities.

* $700bn to be authorised in instalments of $250bn, which could rise to $350bn on notification to Congress by the President.

* Government to get warrants for equity in participating companies as a way of protecting taxpayers and allowing them to benefit from any profit gains from companies participating in the programme.

* Foreclosure mitigation for homeowners facing economic distress.

* Restrictions on chief executive compensation at companies that participate.

* Financial Stability Oversight Board comprising the chairmen of the Federal Reserve, Securities and Exchange Commission and Federal Deposit Insurance Corp, and two members appointed by Congress to oversee the programme.

* A government investigation into the causes of the current financial crisis. Report to be delivered to Congress by June 2009.

* A Congressional oversight panel that would also submit a report on regulatory reform no later than 20 January 2009, when a new president takes office.

* 20 per cent of any future profits from the bailout fund to go to the Affordable Housing Fund and the Capital Magnet Fund to meet America’s housing needs.

* Federal financial regulatory agencies to co-operate with law enforcement authorities to investigate cases of fraud or misrepresentation with respect to financial products.

And how much will it cost?

No one knows, and that’s a serious problem. Mr Paulson has asked Congress for $700bn (5 per cent of the US GDP), but it could be more – or less. The price of assets will be determined “by market mechanisms where possible, such as reverse auctions” but no real market exists for many of these complex financial instruments, so finding a true value will be challenging. If the government prices them too low, some banks will significantly revalue their assets, exacerbating the credit crunch and making the situation worse. Too high, and it will hand a windfall profit to Wall Street firms that speculated on a bailout – leaving the government open to accusations that it is taking money from taxpayers to bail out rich banks that caused the problem.

How would the US pay for it?

It would borrow money from world financial markets and use up to $700bn of taxpayers’ money. The Treasury has asked Congress to raise the national debt limit to $11.315 trillion – that’s $11,315,000,000,000.

The Independent

Seven days that brought Paulson to his knees

By Stephen Foley in New York
Sunday, 28 September 2008

“After reading this proposal, I can only conclude that it is not only our economy that is at risk, Mr Secretary, but our constitution as well.” So said the chairman of the Senate’s banking committee, Christopher Dodd, as Hank Paulson, the Treasury Secretary, squirmed under questioning. That hearing, on Tuesday, was when Mr Paulson realised he had made a terrible miscalculation.

Just a week ago, this multimillionaire former banker appeared to be single-handedly holding up the world’s financial system when he presented Congress with a simple, three-page bailout plan that would have handed him unprecedented personal power, free from judicial or congressional oversight, to spend $700bn (£380bn) of taxpayer money buying and selling Wall Street’s disastrous mortgage investments. By the end of the week, he was on his knees, begging Nancy Pelosi, the Democrat Speaker of the House, to keep his proposal alive. The image of the brick-built Treasury Secretary literally on one knee in the White House Roosevelt Room succinctly captures Mr Paulson’s humiliation.

Despite a personal fortune estimated at $500m a couple of years back, Mr Paulson has cut an engaging, self-effacing figure. A lifelong environmentalist, who raises raccoons, alligators and turtles on the family farm back in Illinois, he looked an ill-fitting choice for the Bush administration as Treasury Secretary. He initially resisted going to Washington, knowing full well that its modus operandi is different from the world of investment banks that he knew at Goldman Sachs. Here, a chief executive’s word is law, and even a three-page document would be regarded as too much red tape.

To the conservative right, he has betrayed the free-market, anti-government orthodoxies. To the American public, he is the architect of a plan to bail out his fat-cat friends on Wall Street. And to the bigwigs of finance, he has been just about the worst possible advocate of a plan that could be the only hope of avoiding a prolonged recession. Business commentators raged that he was unable to translate Wall Street gibberish into plain English, watching him try to explain to Congressmen how the government might used reverse auctions to value collateralised debt obligations, instead of saying: this plan is about saving jobs, allowing Americans to buy homes and saving small businesses.

Mr Paulson has not improved as a public speaker in his two and a half years at the Treasury. Even at Goldman Sachs he used to say, “I am not an inspirational leader, I’m just not.” Never has that been more true – and more disappointing and dangerous – than in these past seven days.

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Brown backs Bush over rescue plan

Gordon Brown has vowed Britain will stand alongside the US during the current period of financial turmoil.

The Prime Minister, who flew into Washington from New York to meet with US President George Bush, expressed support for the proposed $700 billion financial rescue package.

Speaking last night after 90 minutes of talks in the White House, the Prime Minister said: “America and Britain have always stood together as one in times of difficulty and challenging times, and I have told President Bush that facing global turbulence Britain supports the US plan.

“Whatever the details of it, it is the right thing to do.”

Mr Brown, sitting alongside President Bush in the Oval Office, also called on other world leaders to back the proposed bail-out for ailing banks.

He said: “America deserves the support of the rest of the world in securing stability in the markets.”

Mr Brown said they also talked about the “pathway forward” and his proposals for reform of the world financial markets.

Mr Bush said the Prime Minister, who flies back to the UK today, had asked him whether the plan would be “enough” and whether it would get through in the teeth of congressional opposition.

The President added: “I told him the plan is enough to make a difference and it is going to be passed.”

They also discussed the situations in Iraq, Afghanistan and Georgia as well as the Doha round of world trade talks.

Mr Bush said he “appreciated” Mr Brown travelling to the White House, following his visit to the United Nations in New York.

Mr Brown said on the economy: “Stability is the first duty of government and we are determined that our continued cooperation will enhance the stability of our economies.”

Following the meeting, which lasted more than twice the expected 40 minutes, Mr Brown said that the President was “confident” he would get a deal with Congress.

Capital 95

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Cafferty to Blitzer: ‘Don’t make excuses’ for Palin

For those who feel sympathy for Republican vice presidential candidate Sarah Palin during her recent response to a question on the bailout, here is a word of advice.

Don’t tell Jack Cafferty.

The CNN anchorman lambasted Palin for her thoughts on the $700 billion bailout proposed by the Bush administration. After showing a clip of the Alaskan governor’s Friday interview with Katie Couric on CBS’ The Early Show, he had this to say.

“If John McCain wins, this woman will be one 72-year-old’s heartbeat away from being president of the United States, and if that doesn’t scare the hell out of you, it should,” Cafferty said.

He asked viewers to write in opinions about Palin’s qualifications for the presidency and then turned to Wolf Blitzer and said this:

“I’m 65 and have been covering politics, as have you, for a long time. That is one of the most pathetic pieces of tape I of ever seen for someone aspiring to one of the highest offices in this country.”

This video is from CNN’s Situation Room, broadcast September 26, 2008.

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Sanctions=Zimbabwe kids ‘eating rats’

Zimbabwe kids ‘eating rats’


September 26, 2008

London – Children in Zimbabwe are eating rats and inedible roots riddled with toxic parasites to stave off hunger because of chronic food shortages, an aid agency said on Thursday.

Save the Children said the most vulnerable faced starvation unless they get food aid in the next couple of weeks.

“The rising malnutrition and the rise in diseases are going to mean that children will die and we have to act very fast,” said Sarah Jacobs, a spokesperson for the relief group.

The United Nations had said previously that more than five million people in Zimbabwe would need food aid by early next year after a poor harvest compounded by economic turmoil.

Jacobs said many people in the Zambezi Valley, the poorest and driest area, were now surviving on a vile-tasting, fibrous root called makuri.

“It’s got no nutritional value whatsoever. It tastes disgusting and it also has a parasite which attaches to it which is toxic,” said Jacobs, who has just returned from the region.

“This is all they have to eat. You see babies eating it and toddlers eating it, and it’s not digestible. It creates terrible stomach pains.”

People were eating anything to survive, she said. She had come across one child who had died after eating a poisonous root and young children eating tiny rats they caught in their huts.

Save the Children and other agencies are resuming work after Zimbabwe’s government lifted a ban on their operations at the end of August.

President Robert Mugabe imposed the ban before a run-off presidential election in June, accusing the agencies of supporting the opposition. But Save the Children said in reality many agencies had not been able to work in the field since the first election round in March.

The agency, which has launched a £5m appeal for emergency operations in Zimbabwe, said the situation had got much worse in the past few months and that rampant inflation meant even people with jobs would need food aid.

“People’s ways of coping have been completely exhausted. People are saying they’re scared they’re going to die within weeks if food doesn’t come,” Jacobs said.

“We really are playing catch up. It’s a huge humanitarian job now and there has to be much more money than there has ever been before.”

Jacobs said many children had diarrhoea after eating makuri, which was particularly dangerous in a situation where there was no proper clean water or sanitation.

The lack of nutrition had also weakened people’s immune systems and left them vulnerable to illness just before the rainy season when cases of malaria and cholera increase.

There have already been suspected cases of cholera even though the disease does not usually appear until the rains arrive in October.

Save the Children said proper nutrition was particularly vital for those with HIV/Aids, which effects one in five adults in Zimbabwe.

The food crisis has also caused many children to drop out of school either because they could not afford to go, needed to work or look for food, or because their teachers could not afford the journey to work.

Mugabe wants sanctions lifted

September 28, 2008

New York – Zimbabwe’s president said on Wednesday he sees no obstacles to carrying out a power-sharing agreement with rivals and hopes it will lead the West to ease sanctions, which he blamed for devastating the country’s economy.

In an interview with The Associated Press, the 84-year-old Robert Mugabe was sharp, quick and animated – and made clear he is determined to remain president despite what he said were efforts by Britain and the US to oust him.

“They are waiting for a day when this man, this evil man, called Robert Mugabe is no longer in control,” he said. “And I don’t know when that day is coming.”

Mugabe, who is to address the UN General Assembly on Thursday, dismissed Western reports that the September 15 power-sharing deal could fall apart “because I don’t know of any hitch”.

Under the agreement, Mugabe remains president, but is supposed to cede some of the powers he has wielded for nearly three decades in the southern African country.

Mugabe said on Wednesday the only outstanding issue is deciding on four of the 31 Cabinet posts, and the negotiations are continuing in Harare while he is in New York. He declined to say which posts are still being discussed.

The agreement provides for 15 nominated by Mugabe’s party, 13 by opposition leader Morgan Tsvangirai and three by the leader of a smaller opposition faction, Arthur Mutambara.

But Mugabe made clear on Wednesday that he was willing to share power with Tsvangirai, who would become prime minister under the agreement, leading a council of ministers responsible for government policies and reporting to a Cabinet headed by Mugabe.

Truth and reconciliation

Tsvangirai has repeatedly said he does not want a legal witch hunt in Zimbabwe, but that he believes some kind of truth and reconciliation process is necessary to allow healing after years of violence and repression. Mugabe disagreed.

“At the moment, the fight between us has been one between Britain and ourselves – Britain, of course, using as their front the opposition,” Mugabe said. “So the British and the Americans, they’ve got to be reconciled to us.”

Western nations, who have shunned Mugabe’s government and whose aid and investment are sorely needed, have reacted cautiously to the coalition agreement. Millions of dollars in aid are expected to flow in if Mugabe actually shares power.

Mugabe said on Wednesday the West should now begin removing “demonic” sanctions, which have targeted individuals and companies seen to be supporting his regime.

“We don’t expect investment from countries that are hostile,” Mugabe said. “They can keep their investment, but we would hope in the first place that sanctions would be lifted. There is no reason for imposing sanctions on Zimbabwe at all. There has never been any reason for it, you see, except hostility.”

EU foreign ministers have welcomed the power-sharing deal but have said that Mugabe must prove he is willing to restore democratic rule before EU sanctions can be lifted.

Mugabe said on Wednesday that Zimbabwe can return to its former economic status, saying “if only the West can leave us alone, you will certainly see us come up.”

“It will take us time because we have lost some time because of sanctions,” he said.

Mugabe accuses West of genocide

September 26, 2008

New York – Zimbabwe’s president lashed out at Western powers in a speech to the UN General Assembly on Thursday, accusing them of genocide and calling for the removal of US sanctions.

Robert Mugabe also slammed Western-led efforts earlier this year at the UN to step up punitive measures against his regime, and he praised Russia and China for blocking them.

“By the way, those who falsely accuse us of these violations are themselves international perpetrators of genocide, acts of aggression and mass destruction,” Mugabe said in his speech.

“The masses of innocent men, women and children who have perished in their thousands in Iraq surely demand retribution and vengeance. Who shall heed their cry?” Mugabe asked.

The United States only sent a low-ranking diplomat to take notes at Mugabe’s speech.

Mugabe praised Russia and China, saying the two ensured Zimbabwe “did not fall prey to a cocktail of lies which had been designed by our detractors to call for UN sanctions”.

Not able to agree

He did not specifically mention Zimbabwe’s disputed election earlier this year, but he thanked South Africa’s former President Thabo Mbeki for his mediation efforts that led to a power-sharing deal.

Mugabe lauded Mbeki, “whose patience, fortitude, sensitivity, diplomatic skills and painstaking work made it possible for the Zimbabwean parties to overcome what had appeared to be insurmountable and intractable difficulties to reaching agreement”.

Opposition leader Morgan Tsvangirai won the most votes in March presidential polling, but not enough to avoid a run-off against Mugabe. An onslaught of violence against Tsvangirai’s supporters led him to drop out of the presidential run-off and Mugabe was declared the overwhelming winner of the second vote, which was widely denounced as a sham.

Under the power-sharing deal signed September 15 with his rivals, Mugabe is supposed to cede some of the powers he has wielded for nearly three decades.

However, Mugabe’s party and his political rivals have not been able to agree on who will get four of the Cabinet posts.

Western sanctions have targeted individuals and companies seen to be supporting Mugabe’s regime and were tightened after elections this spring.

“Once again, I appeal to the world’s collective conscience to apply pressure for the immediate removal of these sanctions by Britain, the United States and their allies, which have brought untold suffering to our people,” Mugabe told world leaders.

Mugabe, in power since independence from Britain in 1980, blames the sanctions for the collapse of Zimbabwe’s economy. But critics point to his 2000 order that commercial farms be seized from whites.

‘Masters of their own destiny’

On Thursday, Mugabe praised his land reform programme, saying “the majority of our rural people have been empowered to contribute to household and national food security and, indeed, to be masters of their own destiny”.

“However, the effects of climate change that have included recurrent droughts and floods in the past seven years, and the illegal, unilaterally-imposed sanctions on my country have hindered Zimbabwe’s efforts to increase food production.”

Mugabe claimed his land reform was to benefit poor blacks, but many of the farms ended up in the hands of Mugabe loyalists and the once-thriving economy’s agricultural base collapsed.

Now for a little history about what Sanctions do.
Sanctions against Iraq cause death of 6,000 persons per month
Iraq, Politics, 1/27/1999

A former U.N humanitarian official in Iraq, Irish Dennis Halliday, said sanctions against this country cause up to 6,000 deaths per month.

In an interview with British Daily “The Guardian” that was reproduced by French News agency “AFP,” halliday said that after 8 years, the sanctions should be considered as a kind of war as they cause the death of 5,000 to 6,000 persons per month. “We must find another solution,” he pleaded.

The former Irish diplomat, 67, resigned last September from his post of coordinator of the oil-for-food program to protest the maintaining of sanctions against Iraq. Dennis Halliday, who occupied several U.N posts for 30 years, remained in Baghdad only for 13 months.

Halliday accused last week during a visit to France the U.N of practicing “genocide against the Iraqi people.” He voiced appreciation for the latest French proposal to come out of the crisis saying the proposal to lift the embargo on Iraq’s oil exports while maintaining monitoring on armaments was “viable.”

He told “The Guardian” that the US and Great Britain were sharing responsibility in the death of thousands of Iraqis, victim of the misery created by the sanctions.

He said he was convinced that the sanctions as a pressure means do not work and that sanctions always affect the population.

Halliday is the recipient of the 1999 North-South cooperation prize set up in 1991 by Moroccan intellectual Mehdi El Mandjra.

Halliday also rejected the accusations of London and Washington claiming that Baghdad hampers the distribution of foodstuffs to the needy populations. The U.N, he said, monitors every rice bag. We know where it goes.

He added that the oil-for-food program is actually a failure. Any program that generates malnutrition for 30 % of the population and that entails the death of thousands of persons can only be a failure, he said.

Iraqi minister of trade, Mohamed Mehdi Saleh, said last Sunday that the losses incurred by Iraq because of the embargo imposed on the country in 1991 amount to nearly $ 140 billion.

The oil-for-food program enables Iraq to sell $ 5.2 billion worth of crude oil every six months to purchase basic products. Iraq does not reach this ceiling because of the collapse of oil prices and of delays in receiving the spare parts, required to rehabilitate oil infrastructures.

Squeezed to death

Half a million children have died in Iraq since UN sanctions were imposed – most enthusiastically by Britain and the US. Three UN officials have resigned in despair. Meanwhile, bombing of Iraq continues almost daily. John Pilger investigates


guardian.co.uk,
March 04 2000
Wherever you go in Iraq’s southern city of Basra, there is dust. It gets in your eyes and nose and throat. It swirls in school playgrounds and consumes children kicking a plastic ball. “It carries death,” said Dr Jawad Al-Ali, a cancer specialist and member of Britain’s Royal College of Physicians. “Our own studies indicate that more than 40 per cent of the population in this area will get cancer: in five years’ time to begin with, then long afterwards. Most of my own family now have cancer, and we have no history of the disease. It has spread to the medical staff of this hospital. We don’t know the precise source of the contamination, because we are not allowed to get the equipment to conduct a proper scientific survey, or even to test the excess level of radiation in our bodies. We suspect depleted uranium, which was used by the Americans and British in the Gulf War right across the southern battlefields.”
Under economic sanctions imposed by the United Nations Security Council almost 10 years ago, Iraq is denied equipment and expertise to clean up its contaminated battle-fields, as Kuwait was cleaned up. At the same time, the Sanctions Committee in New York, dominated by the Americans and British, has blocked or delayed a range of vital equipment, chemotherapy drugs and even pain-killers. “For us doctors,” said Dr Al-Ali, “it is like torture. We see children die from the kind of cancers from which, given the right treatment, there is a good recovery rate.” Three children died while I was there.

Six other children died not far away on January 25, last year. An American missile hit Al Jumohria, a street in a poor residential area. Sixty-three people were injured, a number of them badly burned. “Collateral damage,” said the Department of Defence in Washington. Britain and the United States are still bombing Iraq almost every day: it is the longest Anglo-American bombing campaign since the second world war, yet, with honourable exceptions, very little appears about it in the British media. Conducted under the cover of “no fly zones”, which have no basis in international law, the aircraft, according to Tony Blair, are “performing vital humanitarian tasks”. The ministry of defence in London has a line about “taking robust action to protect pilots” from Iraqi attacks – yet an internal UN Security Sector report says that, in one five-month period, 41 per cent of the victims were civilians in civilian targets: villages, fishing jetties, farmland and vast, treeless valleys where sheep graze. A shepherd, his father, his four children and his sheep were killed by a British or American aircraft, which made two passes at them. I stood in the cemetery where the children are buried and their mother shouted, “I want to speak to the pilot who did this.”

This is a war against the children of Iraq on two fronts: bombing, which in the last year cost the British taxpayer £60 million. And the most ruthless embargo in modern history. According to Unicef, the United Nations Children’s Fund, the death rate of children under five is more than 4,000 a month – that is 4,000 more than would have died before sanctions. That is half a million children dead in eight years. If this statistic is difficult to grasp, consider, on the day you read this, up to 200 Iraqi children may die needlessly. “Even if not all the suffering in Iraq can be imputed to external factors,” says Unicef, “the Iraqi people would not be undergoing such deprivation in the absence of the prolonged measures imposed by the Security Council and the effects of war.”

Through the glass doors of the Unicef offices in Baghdad, you can read the following mission statement: “Above all, survival, hope, development, respect, dignity, equality and justice for women and children.” A black sense of irony will be useful if you are a young Iraqi. As it is, the children hawking in the street outside, with their pencil limbs and eyes too big for their long thin faces, cannot read English, and perhaps cannot read at all.

“The change in 10 years is unparalleled, in my experience,” Anupama Rao Singh, Unicef’s senior representative in Iraq, told me. “In 1989, the literacy rate was 95%; and 93% of the population had free access to modern health facilities. Parents were fined for failing to send their children to school. The phenomenon of street children or children begging was unheard of. Iraq had reached a stage where the basic indicators we use to measure the overall well-being of human beings, including children, were some of the best in the world. Now it is among the bottom 20%. In 10 years, child mortality has gone from one of the lowest in the world, to the highest.”

Anupama Rao Singh, originally a teacher in India, has spent most of her working life with Unicef. Helping children is her vocation, but now, in charge of a humanitarian programme that can never succeed, she says, “I am grieving.” She took me to a typical primary school in Saddam City, where Baghdad’s poorest live. We approached along a flooded street: the city’s drainage and water distribution system have collapsed. The head, Ali Hassoon, wore the melancholia that marks Iraqi teachers and doctors and other carers: those who know they can do little “until you, in the outside world, decide”. Guiding us around the puddles of raw sewage in the playground, he pointed to the high water mark on a wall. “In the winter it comes up to here. That’s when we evacuate. We stay as long as possible, but without desks, the children have to sit on bricks. I am worried about the buildings coming down.”

The school is on the edge of a vast industrial cemetery. The pumps in the sewage treatment plants and the reservoirs of water are silent, save for a few wheezing at a fraction of their capacity. Many were targets in the American-led blitz in January 1991; most have since disintegrated without spare parts from their British, French and German builders. These are mostly delayed by the Security Council’s Sanctions Committee; the term used is “placed on hold”. Ten years ago, 92% of the population had safe water, according to Unicef. Today, drawn untreated from the Tigris, it is lethal. Touching two brothers on the head, the head said, “These children are recovering from dysentery, but it will attack them again, and again, until they are too weak.” Chlorine, that universal guardian of safe water, has been blocked by the Sanctions Committee. In 1990, an Iraqi infant with dysentery stood a one in 600 chance of dying. This is now one in 50.

Just before Christmas, the department of trade and industry in London blocked a shipment of vaccines meant to protect Iraqi children against diphtheria and yellow fever. Dr Kim Howells told parliament why. His title of under secretary of state for competition and consumer affairs, eminently suited his Orwellian reply. The children’s vaccines were banned, he said, “because they are capable of being used in weapons of mass destruction”. That his finger was on the trigger of a proven weapon of mass destruction – sanctions – seemed not to occur to him. A courtly, eloquent Irishman, Denis Halliday resigned as co-ordinator of humanitarian relief to Iraq in 1998, after 34 years with the UN; he was then Assistant Secretary-General of the United Nations, one of the elite of senior officials. He had made his career in development, “attempting to help people, not harm them”. His was the first public expression of an unprecedented rebellion within the UN bureaucracy. “I am resigning,” he wrote, “because the policy of economic sanctions is totally bankrupt. We are in the process of destroying an entire society. It is as simple and terrifying as that . . . Five thousand children are dying every month . . . I don’t want to administer a programme that results in figures like these.”

When I first met Halliday, I was struck by the care with which he chose uncompromising words. “I had been instructed,” he said, “to implement a policy that satisfies the definition of genocide: a deliberate policy that has effectively killed well over a million individuals, children and adults. We all know that the regime, Saddam Hussein, is not paying the price for economic sanctions; on the contrary, he has been strengthened by them. It is the little people who are losing their children or their parents for lack of untreated water. What is clear is that the Security Council is now out of control, for its actions here undermine its own Charter, and the Declaration of Human Rights and the Geneva Convention. History will slaughter those responsible.”

Inside the UN, Halliday broke a long collective silence. Then on February 13 this year, Hans von Sponeck, who had succeeded him as humanitarian co-ordinator in Iraq, resigned. “How long,” he asked, “should the civilian population of Iraq be exposed to such punishment for something they have never done?” Two days later, Jutta Burghardt, head of the World Food Programme in Iraq, resigned, saying privately she, too, could not tolerate what was being done to the Iraqi people. Another resignation is expected.

When I met von Sponeck in Baghdad last October, the anger building behind his measured, self-effacing exterior was evident. Like Halliday before him, his job was to administer the Oil for Food Programme, which since 1996 has allowed Iraq to sell a fraction of its oil for money that goes straight to the Security Council. Almost a third pays the UN’s “expenses”, reparations to Kuwait and compensation claims. Iraq then tenders on the international market for food and medical supplies and other humanitarian supplies. Every contract must be approved by the Sanctions Committee in New York. “What it comes down to,” he said, “is that we can spend only $180 per person over six months. It is a pitiful picture. Whatever the arguments about Iraq, they should not be conducted on the backs of the civilian population.”

Denis Halliday and I travelled to Iraq together. It was his first trip back. Washington and London make much of the influence of Iraqi propaganda when their own, unchallenged, is by far the most potent. With this in mind, I wanted an independent assessment from some of the 550 UN people, who are Iraq’s lifeline. Among them, Halliday and von Sponeck are heroes. I have reported the UN at work in many countries; I have never known such dissent and anger, directed at the manipulation of the Security Council, and the corruption of what some of them still refer to as the UN “ideal”.

Our journey from Amman in Jordan took 16 anxious hours on the road. This is the only authorised way in and out of Iraq: a ribbon of wrecked cars and burnt-out oil tankers. Baghdad was just visible beneath a white pall of pollution, largely the consequence of the US Air Force strategy of targeting the industrial infrastructure in January 1991. Young arms reached up to the window of our van: a boy offering an over-ripe banana, a girl a single stem flower. Before 1990, such a scene was rare and frowned upon.

Baghdad is an urban version of Rachel Carson’s Silent Spring. The birds have gone as avenues of palms have died, and this was the land of dates. The splashes of colour, on fruit stalls, are surreal. A bunch of Dole bananas and a bag of apples from Beirut cost a teacher’s salary for a month; only foreigners and the rich eat fruit. A currency that once was worth two dollars to the dinar is now worthless. The rich, the black marketeers, the regime’s cronies and favourites, are not visible, except for an occasional tinted-glass late-model Mercedes navigating its way through the rustbuckets. Having been ordered to keep their heads down, they keep to their network of clubs and restaurants and well-stocked clinics, which make nonsense of the propaganda that the sanctions are hurting them, not ordinary Iraqis.

In the centre of Baghdad is a monument to the 1980-88 Iran-Iraq war, which Saddam Hussein started, with encouragement from the Americans, who wanted him to destroy their great foe, the Ayatollah Khomeini. When it was over, at least a million lives had been lost in the cause of nothing, fuelled by the arms industries of Britain and the rest of Europe, the Soviet Union and the United States: the principal members of the Security Council. The monument’s two huge forearms, modelled on Saddam’s arms (and cast in Basingstoke), hold triumphant crossed sabres. Cars are allowed to drive over the helmets of dead Iranian soldiers embedded in the concourse. I cannot think of a sight anywhere in the world that better expresses the crime of sacrificial war.

We stayed at the Hotel Palestine, once claiming five stars. The smell of petrol was constant. As disinfectant is often “on hold”, petrol, more plentiful than water, has replaced it. There is an Iraqi Airways office, which is open every day, with an employee sitting behind a desk, smiling and saying good morning to passing guests. She has no clients, because there is no Iraqi Airways – it died with sanctions. The pilots drive taxis and sweep the forecourt and sell used clothes. In my room, the water ran gravy brown. The one frayed towel was borne by the maid like an heirloom. When I asked for coffee to be brought up, the waiter hovered outside until I was finished; cups are at a premium. His young face was streaked with sadness. “I am always sad,” he agreed matter-of-factly. In a month, he will have earned enough to buy tablets for his brother’s epilepsy.

The same sadness is on the faces of people in the evening auctions, where intimate possessions are sold for food and medicines. Television sets are the most common items; a woman with two toddlers watched their pushchairs go for pennies. A man who had collected doves since he was 15 came with his last bird; the cage would go next. Although we had come to pry, my film crew and I were made welcome. Only once, was I the brunt of the hurt that is almost tangible in a society more westernised than any other Arab country. “Why are you killing the children?” shouted a man from behind his bookstall. “Why are you bombing us? What have we done to you?” Passers-by moved quickly to calm him; one man placed an affectionate arm on his shoulder, another, a teacher, materialised at my side. “We do not connect the people of Britain with the actions of the government,” he said. Laith Kubba, a leading member of the exiled Iraqi opposition, later told me in Washington, “The Iraqi people and Saddam Hussein are not the same, which is why those of us who have dedicated our lives to fighting him, regard the sanctions as immoral.”

In an Edwardian colonnade of Doric and Corinthian columns, people come to sell their books, not as in a flea market, but out of desperate need. Art books, leather bound in Baghdad in the 30s, obstetrics and radiology texts, copies of British Medical Journals, first and second editions of Waiting For Godot, The Sun Also Rises and, no less, British Housing Policy 1958 were on sale for the price of a few cigarettes. A man in a clipped grey moustache, an Iraqi Bertie Wooster, said, “I need to go south to see my sister, who is ill. Please be kind and give me 25 dinars.” (About a penny). He took it, nodded and walked smartly away.

Mohamed Ghani’s studio is dominated by a huge crucifix he is sculpting for the Church of Assumption in Baghdad. As Iraq’s most famous sculptor, he is proud that the Vatican has commissioned him, a Muslim, to sculpt the Stations of the Cross in Rome – a romantic metaphor of his country as Mesopotamia, the “cradle of Western civilisation”. His latest work is a 20-foot figure of a woman, her child gripping her legs, pleading for food. “Every morning, I see her,” he said, “waiting, with others just like her, in a long line at the hospital at the end of my road. They are what we have been forced to become.” He has produced a line of figurines that depict their waiting; all the heads are bowed before a door that is permanently closed. “The door is the dispensary,” he said, “but it is also the world, kept shut by those who run the world.” The next day, I saw a similar line of women and children, and fathers and children, in the cancer ward at the Al Mansour children’s hospital. It is not unlike St Thomas’s in London. Drugs arrived, they said, but intermittently, so that children with leukaemia, who can be saved with a full course of three anti-biotics, pass a point beyond which they cannot be saved, because one is missing. Children with meningitis can also survive with the precise dosage of antibiotics; here they die. “Four milligrams save a life,” said Dr Mohamed Mahmud, “but so often we are allowed no more than one milligram.” This is a teaching hospital, yet children die because there are no blood-collecting bags and no machines that separate blood platelets: basic equipment in any British hospital. Replacements and spare parts have been “on hold” in New York, together with incubators, X-ray machines, and heart and lung machines.

I sat in a clinic as doctors received parents and their children, some of them dying. After every other examination, Dr Lekaa Fasseh Ozeer, the oncologist, wrote in English: “No drugs available.” I asked her to jot down in my notebook a list of the drugs the hospital had ordered, but rarely saw. In London, I showed this to Professor Karol Sikora who, as chief of the cancer programme of the World Health Organisation (WHO), wrote in the British Medical Journal last year: “Requested radiotherapy equipment, chemotherapy drugs and analgesics are consistently blocked by United States and British advisers [to the Sanctions Committee in New York]. There seems to be a rather ludicrous notion that such agents could be converted into chemical or other weapons.”

He told me, “Nearly all these drugs are available in every British hospital. They’re very standard. When I came back from Iraq last year, with a group of experts I drew up a list of 17 drugs that are deemed essential for cancer treatment. We informed the UN that there was no possibility of converting these drugs into chemical warfare agents. We heard nothing more. The saddest thing I saw in Iraq was children dying because there was no chemotherapy and no pain control. It seemed crazy they couldn’t have morphine, because for everybody with cancer pain, it is the best drug. When I was there, they had a little bottle of aspirin pills to go round 200 patients in pain. They would receive a particular anti-cancer drug, but then get only little bits of drugs here and there, and so you can’t have any planning. It is bizarre.”

In January, last year, George Robertson, then defence secretary, said, “Saddam Hussein has in warehouses $275 million worth of medicines and medical supplies which he refuses to distribute.” The British government knew this was false, because UN humanitarian officials had made clear the problem of drugs and equipment coming sporadically into Iraq – such as machines without a crucial part, IV fluids and syringes arriving separately – as well as the difficulties of transport and the need for a substantial buffer stock. “The goods that come into this country are distributed to where they belong,” said Hans von Sponeck. “Our most recent stock analysis shows that 88.8% of all humanitarian supplies have been distributed.” The representatives of Unicef, the World Food Programme and the Food and Agricultural Organisation confirmed this. If Saddam Hussein believed he could draw an advantage from obstructing humanitarian aid, he would no doubt do so. However, according to a FAO study: “The government of Iraq introduced a public food rationing system with effect from within a month of the imposition of the embargo. It provides basic foods at 1990 prices, which means they are now virtually free. This has a life-saving nutritional benefit . . . and has prevented catastrophe for the Iraqi people.”

The rebellion in the UN reaches up to Kofi Annan, once thought to be the most compliant of secretary-generals. Appointed after Madeleine Albright, then the US representative at the UN, had waged a campaign to get rid of his predecessor, Boutros-Boutros Ghali, he pointedly renewed Hans von Sponeck’s contract in the face of a similar campaign by the Americans. He shocked them last October when he accused the US of “using its muscle on the Sanctions Committee to put indefinite ‘holds’ on more than $700 million worth of humanitarian goods that Iraq would like to buy.” When I met Kofi Annan, I asked if sanctions had all but destroyed the credibility of the UN as a benign body. “Please don’t judge us by Iraq,” he said.

On January 7, the UN’s Office of Iraq Programme reported that shipments valued at almost a billion and a half dollars were “on hold”. They covered food, health, water and sanitation, agriculture, education. On February 7, its executive director attacked the Security Council for holding up spares for Iraq’s crumbling oil industry. “We would appeal to all members of the Security Council,” he wrote, “to reflect on the argument that unless key items of oil industry are made available within a short time, the production of oil will drop . . . This is a clear warning.” In other words, the less oil Iraq is allowed to pump, the less money will be available to buy food and medicine. According to the Iraqis at the UN, it was US representative on the Sanctions Committee who vetoed shipments the Security Council had authorised. Last year, a senior US official told the Washington Post, “The longer we can fool around in the [Security] Council and keep things static, the better.” There is a pettiness in sanctions that borders on vindictiveness. In Britain, Customs and Excise stops parcels going to relatives, containing children’s clothes and toys. Last year, the chairman of the British Library, John Ashworth, wrote to Harry Cohen MP that, “after consultation with the foreign office”, it was decided that books could no longer be sent to Iraqi students.

In Washington, I interviewed James Rubin, an under secretary of state who speaks for Madeleine Albright. When asked on US television if she thought that the death of half a million Iraqi children was a price worth paying, Albright replied: “This is a very hard choice, but we think the price is worth it.” When I questioned Rubin about this, he claimed Albright’s words were taken out of context. He then questioned the “methodology” of a report by the UN’s World Health Organisation, which had estimated half a million deaths. Advising me against being “too idealistic”, he said: “In making policy, one has to choose between two bad choices . . . and unfortunately the effect of sanctions has been more than we would have hoped.” He referred me to the “real world” where “real choices have to be made”. In mitigation, he said, “Our sense is that prior to sanctions, there was serious poverty and health problems in Iraq.” The opposite was true, as Unicef’s data on Iraq before 1990, makes clear.

The irony is that the US helped bring Saddam Hussein’s Ba’ath Party to power in Iraq, and that the US (and Britain) in the 1980s conspired to break their own laws in order, in the words of a Congressional inquiry, to “secretly court Saddam Hussein with reckless abandon”, giving him almost everything he wanted, including the means of making biological weapons. Rubin failed to see the irony in the US supplying Saddam with seed stock for anthrax and botulism, that he could use in weapons, and claimed that the Maryland company responsible was prosecuted. It was not: the company was given Commerce Department approval.

Denial is easy, for Iraqis are a nation of unpeople in the West, their panoramic suffering of minimal media interest; and when they are news, care is always taken to minimise Western culpability. I can think of no other human rights issue about which the governments have been allowed to sustain such deception and tell so many bare-faced lies. Western governments have had a gift in the “butcher of Baghdad”, who can be safely blamed for everything. Unlike the be-headers of Saudi Arabia, the torturers of Turkey and the prince of mass murderers, Suharto, only Saddam Hussein is so loathsome that his captive population can be punished for his crimes. British obsequiousness to Washington’s designs over Iraq has a certain craven quality, as the Blair government pursues what Simon Jenkins calls a “low-cost, low-risk machismo, doing something relatively easy, but obscenely cruel”. The statements of Tony Blair and Robin Cook and assorted sidekick ministers would, in other circumstances, be laughable. Cook: “We must nail the absurd claim that sanctions are responsible for the suffering of the Iraqi people”, Cook: “We must uphold the sanctity of international law and the United Nations . . .” ad nauseam. The British boast about their “initiative” in promoting the latest Security Council resolution, which merely offers the prospect of more Kafkaesque semantics and prevarication in the guise of a “solution” and changes nothing.

What are sanctions for? Eradicating Iraq’s weapons of mass destruction, says the Security Council resolution. Scott Ritter, a chief UN weapons inspector in Iraq for five years, told me: “By 1998, the chemical weapons infrastructure had been completely dismantled or destroyed by UNSCOM (the UN inspections body) or by Iraq in compliance with our mandate. The biological weapons programme was gone, all the major facilities eliminated. The nuclear weapons programme was completely eliminated. The long range ballistic missile programme was completely eliminated. If I had to quantify Iraq’s threat, I would say [it is] zero.” Ritter resigned in protest at US interference; he and his American colleagues were expelled when American spy equipment was found by the Iraqis. To counter the risk of Iraq reconstituting its arsenal, he says the weapons inspectors should go back to Iraq after the immediate lifting of all non-military sanctions; the inspectors of the international Atomic Energy Agency are already back. At the very least, the two issues of sanctions and weapons inspection should be entirely separate. Madeleine Albright has said: “We do not agree that if Iraq complies with its obligations concerning weapons of mass destruction, sanctions should be lifted.” If this means that Saddam Hussein is the target, then the embargo will go on indefinitely, holding Iraqis hostage to their tyrant’s compliance with his own demise. Or is there another agenda? In January 1991, the Americans had an opportunity to press on to Baghdad and remove Saddam, but pointedly stopped short. A few weeks later, they not only failed to support the Kurdish and Shi’a uprising, which President Bush had called for, but even prevented the rebelling troops in the south from reaching captured arms depots and allowed Saddam Hussein’s helicopters to slaughter them while US aircraft circled overhead. At they same time, Washington refused to support Iraqi opposition groups and Kurdish claims for independence.

“Containing” Iraq with sanctions destroys Iraq’s capacity to threaten US control of the Middle East’s oil while allowing Saddam to maintain internal order. As long as he stays within present limits, he is allowed to rule over a crippled nation. “What the West would ideally like,” says Said Aburish, the author, “is another Saddam Hussein.” Sanctions also justify the huge US military presence in the Gulf, as Nato expands east, viewing a vast new oil protectorate stretching from Turkey to the Caucasus. Bombing and sanctions are ideal for policing this new order: a strategy the president of the American Physicians for Human Rights calls “Bomb Now, Die Later”. The perpetrators ought not be allowed to get away with this in our name: for the sake of the children of Iraq, and all the Iraqs to come


UN sanctions cause death of patients: Afghanistan
December 2000

ISLAMABAD (NNI): The United Nations economic and aviation sanctions on the war-shattered Afghanistan have resulted in the death of patients, President Afghan Preventive Medicine Dept. Ministry of Public Health Maulavi Abdul Hakim Hakimi has said. He however did not mention as to how many people have died.

“The sanctions have caused spread of epidemics in Afghanistan. Diseases like malaria, T.B. and laxmania have multiplied owing to lack of medicine,” Maulvi Hakimi said.

The United Nations Security Council slapped sanctions on Afghanistan last year after Taliban refused to turn over Osama bin Laden for trial in American embassiesí bombing in Africa, which had killed 224 people, including 12 Americans.

Since the slapping of sanctions on Ariana flights by UN, the Ministry of Public Health of the Islamic Emirate of Afghanistan is unable to send patients with critical conditions abroad. As a result, many have died. Similarly, various life-saving drugs can not be imported due to the embargo on Ariana flights.

Ariana was being used for medicine and medical supplies and equipment imports. According to the staff of Indra Ghandi Hospital in Kabul, 50% of medicines and medical equipment in Kabulís hospitals were being shipped by Ariana.

The main supplier of eye-care in Afghanistan the International Assistance Missionís Noor Eye Hospital previously source all its imported eye medicines in India and imported them via Ariana. They have been unable to do this since the imposition of the sanctions. Other health eugenics previously imported drugs through Dubai via Ariana. The ban on Ariana has also disrupted the activities of the Afghan Postal Services, which had been gradually restored and extended over the post three years.

It is noteworthy that an elaborate smuggling network has emerged as a result of the sanctions and has resulted in 100% increase in the prices of some essential commodities, he said. The impact of the sanctions on the Afghan people is undoubtedly clear.

“The Washington/Moscow collaboration to impose more sanctions on the Islamic Emirate is in no way justified because the Islamic Emirate has shown its readiness to solve all outstanding issues through talks,” Afghan ambassador Mulla Abdul Salam Zaeef has said. About Osama, he said the government of the Islamic Emirate has recently proposed a fourth option to resolve Osama issue.

“However, the UN on the behest of Washington and Moscow resort to starvation tactics in order to obtain political goals. This is a new trend in politics that the common man has to face suffering, starvation, destitute and penury because a certain government is not palatable to a certain super power and organization,” Mulla Zaeef said.

“This will only prolong the suffering of the people of Afghanistan without achieving her politically motivated goals,” he said.

Study Says Haiti Sanctions Kill Up to 1,000 Children a Month


November 9, 1993


An oil embargo and other sanctions intended to help restore democracy to Haiti are killing as many as 1,000 children each month, according to a study to be released this week by international public health experts at Harvard University.

The study, titled “Sanctions in Haiti: Crisis in Humanitarian Action,” reports that although international attention has focused largely on killings and political terrorism in Haiti since the September 1991 coup that deposed President Jean-Bertrand Aristide, “the human toll from the silent tragedy of humanitarian neglect has been far greater than either the violence or human rights abuses.”

Normally, nearly 3,000 children aged 5 or younger die in Haiti every month. According to the study, that figure has increased by about a 1,000 each month. There are about a million children under the age of 5 in Haiti, which has a population of about 7 million. More Malnutrition Seen

The study also found that the embargo had contributed to as many as 100,000 new cases of moderate to severe malnutrition.

The Harvard report, like the assessments of relief organizations here, found that the international embargoes that have been imposed, relaxed, then reimposed since the military coup have ravaged this country, the hemisphere’s poorest.

Although all of the embargoes against Haiti since the coup have made exceptions for relief supplies, the Harvard study found that from food production to the availability of drugs and vaccines, the impact of sanctions has been severe. Food ‘Practically Impeded’

“Food and medicines are exempted from embargoes, so everyone assumes that everything will be all right,” said Lincoln C. Chen, director of the Harvard Center for Population and Development Studies. “But what we have found is that even when they are not legally impeded, these kinds of things are practically impeded.”

[ A State Department spokesman, David Johnson, declined to comment on the Harvard report, saying he had not seen it. But he said the Administration was well aware that the sanctions have had a painful effect on the people of Haiti. "Sanctions are by their very nature a blunt instrument, but they remain the best tool we have at our disposal to bring about the return of democracy in Haiti," he said. ]

President Clinton, in an interview on Sunday, cited the potential for increased suffering as the reason for his reluctance to back Father Aristide’s call for a near-total embargo. “We can in effect have a total embargo and try to shut the country down,” he said. “That will be more painful in the near term to the average Haitians who are already suffering.”

Instead, the Administration is trying to persuade other nations to follow its lead in freezing the overseas assets of leaders and supporters of the government.

In the three weeks that Haiti has been cut off from foreign oil deliveries, this country’s economy has come to a near halt. In the capital, Port-au-Prince, litter-strewn streets are empty of most traffic by early afternoon. Unemployment is soaring, and the prices of ordinary goods are climbing beyond the reach of many.

The report says that Haiti’s gross domestic product decreased by 5.2 percent in 1991 and 10 percent in 1992 and that exports in 1992 were about half of what they were the previous year and less than a third of what they were in the early 1980’s.

In provincial towns and rural areas, the situation is far worse. According to radio reports here, Port de Paix, a small city in Haiti’s grindingly poor northwest, has gone without electricity for three weeks. Transportation to many rural areas has been almost completely cut off.

In the small town of Ganthier, an hour east of the capital along the highway to the Dominican Republic, Haiti’s suffering is evident everywhere.

At the town’s small medical clinic, the only health care center within miles, a white ambulance sits idle for lack of gasoline. The clinic’s pharmacy is almost bare.

“We don’t have any money for medicine, and life has become very hard,” said Solieus Fenelon, three of whose six children are seriously ill with diseases including malaria and typhoid.

“The little money I had has dried up,” said Mrs. Fenelon, who made her living as a shoe peddler in the capital until public transportation became unavailable for lack of gas. “It’s hard for me to watch my children like this and not be able to do anything for them. They are in the hands of God now.”

Public health experts say broadening the current embargo, which President Clinton says he is loath to do, would threaten even more Haitians with severe malnutrition and disease. Effect on Aristide’s Future

On the other hand, easing up on sanctions, which now cover oil and arms, would send a signal to Haiti’s de facto military rulers that after two years of diplomacy on Father Aristide’s behalf, the United Nations and Washington are backing away from the goal of restoring him to power.

The current oil embargo is much like another round of sanctions imposed on Haiti in June that quickly brought the military to the negotiating table. This time, however, the army, which has refused to comply with the terms of the United Nations-brokered settlement of Haiti’s political crisis, seems to have prepared for sanctions. It has stockpiled more fuel and rushed the completion of a new road to the Dominican Republic, a source of limited amounts of imported fuel.

Because of transportation problems, hoarding and profiteering, the prices of many basic medicines, when they are available at all, have gone up as much as fivefold. Immunization programs have been paralyzed in many areas because of a lack of supplies, the failure of refrigeration and large-scale movements of people as they flee violence or joblessness.

Haiti’s children have been particularly hard hit by a measles epidemic that has swept the country in the last two years. The Harvard study found that vaccination programs in Port-au-Prince and in some rural areas have reached as little as 4 percent of their target populations because of factors related to the embargo. Relief Corridor Urged

Mr. Chen said the United States and other donors should set up what he called a “humanitarian corridor” into Haiti, to insure delivery of vital supplies stem the growing death toll.

“Our message is that it is fine to intervene for democracy, but at the same time you must accept some of these responsibilities,” he said.

The study’s findings on child mortality were based in large part on projections made from what researchers said was the only high quality, long-term tracking of births and deaths in rural Haiti. The Harvard researchers leaned heavily on that study, conducted by the Save the Children project in the town of Maissade in Haiti’s Central Plateau region. Mr. Chen said the study of the individual community was representative enough to serve as a base for a national projection.

The Save the Children study monitors the fortunes of the town’s population of 44,900. Malnutrition data was collected from the Agency for International Development and the Centers for Disease Control, as well as from studies by organizations like CARE. 7 Visit From Harvard

Six members of the Harvard team visited Haiti this summer shortly after the first of two oil embargoes imposed on the country. Mr. Chen said another member repeatedly visited the country since then to update the researchers’ information.

With some of the hemisphere’s worst public health indicators, Haiti’s child mortality rate of 133 deaths per 1,000 live births was already far higher than that of most of its neighbors even before the current political crisis. In the neighboring Dominican Republic, for instance, that figure stood at 54 deaths per 1,000 live births in 1992.

Jorimene Simeon of Ganthier, who is 36, said she has had tuberculosis for two and a half years, but has been forced to interrupt her treatment for lack of medicine.

“I could have been cured,” Miss Simeon said bitterly. “They prescribed me the medicine, but the papers have just stayed in my hand. I can’t afford to buy it.”

Universal Declaration of Human Rights

UN Document Series Symbol: ST/HR/

UN Issuing Body: Secretariat Centre for Human Rights

© United Nations

Adopted and proclaimed by General Assembly resolution 217 A(III) of 10 Dec.1948.

PREAMBLE

Whereas recognition of the inherent dignity and of the equal and inalienable rights of all members of the human family is the foundation of freedom, justice and peace in the world,

Whereas disregard and contempt for human rights have resulted in barbarous acts which have outraged the conscience of mankind, and the advent of a world in which human beings shall enjoy freedom of speech and belief and freedom from fear and want has been proclaimed as the highest aspiration of the common people,

Whereas it is essential, if man is not to be compelled to have recourse, as a last resort, to rebellion against tyranny and oppression, that human rights should be protected by the rule of law,

Whereas it is essential to promote the development of friendly relations between nations,

Whereas the peoples of the United Nations have in the Charter reaffirmed their faith in fundamental human rights, in the dignity and worth of the human person and in the equal rights of men and women and have determined to promote social progress and better standards of life in larger freedom,

Whereas Member States have pledged themselves to achieve, in cooperation with the United Nations, the promotion of universal respect for and observance of human rights and fundamental freedoms,

Whereas a common understanding of these rights and freedoms is of the greatest importance for the full realization of this pledge,

Now, therefore,

The General Assembly,

Proclaims this Universal Declaration of Human Rights as a common standard of achievement for all peoples and all nations, to the end that every individual and every organ of society, keeping this Declaration constantly in mind, shall strive by teaching and education to promote respect for these rights and freedoms and by progressive measures, national and international, to secure their universal and effective recognition and observance, both among the peoples of Member States themselves and among the peoples of territories under their jurisdiction.

Article 1

All human beings are born free and equal in dignity and rights. They are endowed with reason and conscience and should act towards one another in a spirit of brotherhood.

Article 2

Everyone is entitled to all the rights and freedoms set forth in this Declaration, without distinction of any kind, such as race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status.

Furthermore, no distinction shall be made on the basis of the political, jurisdictional or international status of the country or territory to which a person belongs, whether it be independent, trust, non-self-governing or under any other limitation of sovereignty.

Article 3

Everyone has the right to life, liberty and security of person.

Article 4

No one shall be held in slavery or servitude; slavery and the slave trade shall be prohibited in all their forms.

Article 5

No one shall be subjected to torture or to cruel, inhuman or degrading treatment or punishment.

Article 6

Everyone has the right to recognition everywhere as a person before the law.

Article 7

All are equal before the law and are entitled without any discrimination to equal protection of the law. All are entitled to equal protection against any discrimination in violation of this Declaration and against any incitement to such discrimination.

Article 8

Everyone has the right to an effective remedy by the competent national tribunals for acts violating the fundamental rights granted him by the constitution or by law.

Article 9

No one shall be subjected to arbitrary arrest, detention or exile.

Article 10

Everyone is entitled in full equality to a fair and public hearing by an independent and impartial tribunal, in the determination of his rights and obligations and of any criminal charge against him.

Article 11

1. Everyone charged with a penal offence has the right to be presumed innocent until proved guilty according to law in a public trial at which he has had all the guarantees necessary for his defence.

2. No one shall be held guilty of any penal offence on account of any act or omission which did not constitute a penal offence, under national or international law, at the time when it was committed. Nor shall a heavier penalty be imposed than the one that was applicable at the time the penal offence was committed.

Article 12

No one shall be subjected to arbitrary interference with his privacy, family, home or correspondence, nor to attacks upon his honour and reputation. Everyone has the right to the protection of the law against such interference or attacks.

Article 13

1. Everyone has the right to freedom of movement and residence within the borders of each State.

2. Everyone has the right to leave any country, including his own, and to return to his country.

Article 14

1. Everyone has the right to seek and to enjoy in other countries asylum from persecution.

2. This right may not be invoked in the case of prosecutions genuinely arising from non-political crimes or from acts contrary to the purposes and principles of the United Nations.

Article 15

1. Everyone has the right to a nationality.

2. No one shall be arbitrarily deprived of his nationality nor denied the right to change his nationality.

Article 16

1. Men and women of full age, without any limitation due to race, nationality or religion, have the right to marry and to found a family. They are entitled to equal rights as to marriage, during marriage and at its dissolution.

2. Marriage shall be entered into only with the free and full consent of the intending spouses.

3. The family is the natural and fundamental group unit of society and is entitled to protection by society and the State.

Article 17

1. Everyone has the right to own property alone as well as in association with others.

2. No one shall be arbitrarily deprived of his property.

Article 18

Everyone has the right to freedom of thought, conscience and religion; this right includes freedom to change his religion or belief, and freedom, either alone or in community with others and in public or private, to manifest his religion or belief in teaching, practice, worship and observance.

Article 19

Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.

Article 20

1. Everyone has the right to freedom of peaceful assembly and association.

2. No one may be compelled to belong to an association.

Article 21

1. Everyone has the right to take part in the government of his country, directly or through freely chosen representatives.

2. Everyone has the right to equal access to public service in his country.

3. The will of the people shall be the basis of the authority of government; this will shall be expressed in periodic and genuine elections which shall be by universal and equal suffrage and shall be held by secret vote or by equivalent free voting procedures.

Article 22

Everyone, as a member of society, has the right to social security and is entitled to realization, through national effort and international co-operation and in accordance with the organization and resources of each State, of the economic, social and cultural rights indispensable for his dignity and the free development of his personality.

Article 23

1. Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment.

2. Everyone, without any discrimination, has the right to equal pay for equal work.

3. Everyone who works has the right to just and favourable remuneration ensuring for himself and his family an existence worthy of human dignity, and supplemented, if necessary, by other means of social protection.

4. Everyone has the right to form and to join trade unions for the protection of his interests.

Article 24

Everyone has the right to rest and leisure, including reasonable limitation of working hours and periodic holidays with pay.

Article 25

1. Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control.

2. Motherhood and childhood are entitled to special care and assistance. All children, whether born in or out of wedlock, shall enjoy the same social protection.

Article 26

1. Everyone has the right to education. Education shall be free, at least in the elementary and fundamental stages. Elementary education shall be compulsory. Technical and professional education shall be made generally available and higher education shall be equally accessible to all on the basis of merit.

2. Education shall be directed to the full development of the human personality and to the strengthening of respect for human rights and fundamental freedoms. It shall promote understanding, tolerance and friendship among all nations, racial or religious groups, and shall further the activities of the United Nations for the maintenance of peace.

3. Parents have a prior right to choose the kind of education that shall be given to their children.

Article 27

1. Everyone has the right freely to participate in the cultural life of the community, to enjoy the arts and to share in scientific advancement and its benefits.

2. Everyone has the right to the protection of the moral and material interests resulting from any scientific, literary or artistic production of which he is the author.

Article 28

Everyone is entitled to a social and international order in which the rights and freedoms set forth in this Declaration can be fully realized.

Article 29

1. Everyone has duties to the community in which alone the free and full development of his personality is possible.

2. In the exercise of his rights and freedoms, everyone shall be subject only to such limitations as are determined by law solely for the purpose of securing due recognition and respect for the rights and freedoms of others and of meeting the just requirements of morality, public order and the general welfare in a democratic society.

3. These rights and freedoms may in no case be exercised contrary to the purposes and principles of the United Nations.

Article 30

Nothing in this Declaration may be interpreted as implying for any State, group or person any right to engage in any activity or to perform any act aimed at the destruction of any of the rights and freedoms set forth herein.

It seems the United Nations have been breaking a few of their own laws, as have many countries who are members.

But hell what do I know? I am just a citizen who took the time to read the stupid stuff they wrote. Just a pity they really don’t do what they say in their laws.

The planet is suffering from a Human Rights Embargo. Seems we have no rights at all. I call them as I see them.

Published in:  on September 27, 2008 at 10:20 pm Comments (3)
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