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Posts Tagged ‘Glenn Beck Fox News’

Attention Glenn Beck: Official Documentation on FEMA prison camps (04/08/09)

Posted by 912project on April 8, 2009

 On Monday, prior to Glenn Beck’s airing of his FEMA camp  debunking piece that he did with Popular Mechanics, Alex Jones correctly predicted the straw man theory that Beck would use, and did a 1 hour and 40 minute presentation of documentation of these FEMA prison camps. In the following video series, the following are covered:

  • Army Civialian Inmate Labor Camp Program
  • Official Governemt Documents and News Articles from the Main Stream Media
  • Internal Government Documents
  • Executive Presidential Orders pertaining to Martial Law
  • Public Preparedness program related to Martial Law
  • Documentation of Military Troops on the streets of the United States
  • Video and CSPAN evidence of Congress being threated with Martial Law in order to pass bailout bills etc.

Please watch the complete video series and pass this information on to everyone you know.

Part 1Part 2, Part 3Part4, Part 5, Part 6, Part 7

Now, here is Beck’s actual piece from Monday  ( Wow- Beck did not mention ANY of the real information )  

And here is a follow up article done by Alex Jones’s website- It is:pretty easy to tell who is being honest with you.

http://www.infowars.com/glenn-becks-lame-attempt-to-debunk-fema-camps/

Disinfo operative Glenn Beck’s shabby and comical attempt to “debunk” FEMA camps was theater of the absurd at its most revealing. Recall Beck a few weeks ago trying to bait us with a promise to investigate the camps. He came off as alarmed over the prospect of internment camps and this set the hook. Stay tuned, folks, he teased, we’ll get to the bottom of this.

Glenn Beck, the seasoned operative, never intended a serious exposé. He planned to make those of us who know FEMA camps exist look like fools and churls. In order to do this he enlisted the retread James Meigs, editor-in-chief of the washed-up Hearst publication, Popular Mechanics. Back in 2005, Meigs spearheaded an effort to debunk the 9/11 truth movement with a Popular Mechanic cover story. Meigs and his crew of supposed debunkers approached the science of 9/11 very selectively and were more interested in ad hominem attacks leveled against researchers. Meigs concluded his diatribe by stating that “those who peddle fantasies that this country encouraged, permitted or actually carried out the attacks are libeling the truth — and disgracing the memories of the thousands who died that day.”

Meigs turned his “fact checking” (through omission) into a book — Debunking 9/11 Myths: Why Conspiracy Theories Can’t Stand Up to the Facts. It was published by Hearst, the media corporation famous for its association with the expression “yellow journalism.” Hearst told the illustrationist Frederic Remington during the Spanish-American War: “You furnish the pictures and I’ll furnish the war.” Nothing much as changed since 1895.

In the video here, Beck says Meigs heads up the “independent group” he assigned the task of debunking the conspiracy nuts who believe in the existence of FEMA camps. As evidence the nutters are way out in left field, Meigs dissects a widely discredited video of a Beech Grove, Indiana, Amtrak facility filmed by the Indianapolis attorney Linda Thompson.

You may recall Thompson’s earlier video about the government siege and subsequent incineration of the Branch Davidians in Waco, Texas. She made a series of absurd claims about the siege, for instance insisting the BATF and FBI used flame throwers mounted on tanks against the Davidians. It didn’t take long for Soldier of Fortune Magazine to discredit Thompson’s accusations. She mysteriously vanished into the ether after people began asking if she might be a government operative.

Meigs and Beck say nothing about this. “This footage, which appears in multiple videos on YouTube, is from a ‘documentary’ filmed 15 years ago,” explains Beck’s Fox News web page. “Yet today, it’s been viewed nearly 1.5 million times online. The woman who made the video, Linda Thompson, was one of the pioneers of the militia movement in the United States — except she was so extreme, she embarrassed even her fellow militants. Far from a death camp, Beech Grove is the primary maintenance facility for Amtrak’s long-distance trains, overhauling and repairing approximately 700 passenger cars a year. Company officials, who’ve heard these theories for years, welcomed our film crew, and the superintendent of the facility showed us anything we wanted to see.”

Beck does not bother to mention the fact serious FEMA camp researchers discarded the video years ago. Meigs and Beck are more interested in linking the video to Thompson and the “militia movement” (created as a scary bogeyman by the corporate media in the 1990s) and connecting that up with the ugly specter of the Timothy McVeigh — the same McVeigh photographed at Camp Grafton, North Dakota (the base specializes in demolitions training) in 1993, a mere 18 months before the Oklahoma City bombing. The FBI insisted he was not in the military at the time.

In the second installment of this “definitive debunking,” Beck and his sidekick Meigs show us a satellite photo of a real concentration camp the conspiracy theorists supposedly claim is a FEMA camp. As Alex Jones called it when the photo was used as a teaser at the close of the first installment the previous evening, the camp is located in North Korea (because only communists operate concentration camps, never mind the forcible relocation and internment of approximately 110,000 Japanese nationals and Japanese Americans by Roosevelt during World War 2, a criminal act lavishly defended by the neocon darling Michelle Malkin, a regular on Fox News).

After “debunking” Camp Grayling, Michigan, where there is a mock camp complete with barbed wire and watch towers for National Guard training, Beck and Meigs begin talking about how the conspiracy theorists are out of touch with reality and refuse to accept the obvious truth there are no camps and our loving government would never do such a thing, not like the evil communists in North Korea (or the evil mullahs in Iran, although our intrepid investigators do not mention the latter).

As expected, Beck’s long awaited “debunking” does not bother to cover more substantial territory and instead relies on old discredited video footage and photos that look good on television.

Beck and his protégé completely ignore solid and irrefutable evidence that does not look good on television and might prompt bored viewers to switch over to the Comedy Channel or actually turn off the idiot tube and read a book.

No mention of the contract awarded in January of 2006 to Kellogg, Brown and Root, a subsidiary of Halliburton, to build “temporary detention and processing capabilities to augment existing ICE (Immigration Customs Enforcement) Detention and Removal Operations (DRO) Program facilities in the event of an emergency influx of immigrants into the U.S., or to support the rapid development of new programs,” (emphasis added) according to Fox News.

It was said Rex-84, short for Readiness Exercise 1984, was also about rounding up and detaining illegal immigrants. “The Rex 84 Program was originally established on the reasoning that if a ‘mass exodus’ of illegal aliens crossed the Mexican/US border, they would be quickly rounded up and detained in detention centers by FEMA,” notes Allen L Roland.

In fact, Rex-84 Alpha Explan (as it was also known) was cooked up by FEMA and 34 other federal civil departments and agencies (with a few NATO nations to boot) for the express purpose of detaining large numbers of American citizens. “The exercise anticipated civil disturbances, major demonstrations and strikes that would affect continuity of government and/or resource mobilization. To fight subversive activities, there was authorization for the military to implement government ordered movements of civilian populations at state and regional levels, the arrest of certain unidentified segments of the population, and the imposition of martial law,” Diana Reynolds writes (The Rise of the National Security State: FEMA and the NSC).

No mention of master military contingency plan Operation Garden Plot developed in response to the civil disorders of the 1960s and still operational under the control of the U.S. Northern Command. Garden plot was last activated (as Noble Eagle) to provide military assistance to civil authorities following September 11, 2001. The Pentagon also activated it to restore order during the 1992 Los Angeles Riots. Operation Garden Plot is “the program to control the population.”

Rex 84, Operation Garden Plot and its sister program Operation Cable Splicer were not enough for the control freaks in government, so in May, 2007, George Bush signed executive new orders NSDP51 (also known as PDD 51) and HSDP20 to replace Rex 84. Bush’s orders established that the executive would take over all state and local governments during a national state of emergency.

 

More recently the National Emergency Centers Act or HR 645 was introduced in Congress. It mandates the establishment of “national emergency centers” to be located on military installations for the purpose of to providing “temporary housing, medical, and humanitarian assistance to individuals and families dislocated due to an emergency or major disaster,” according to the bill (see Paul Joseph Watson: New Legislation Authorizes FEMA Camps In U.S.). “Ominously, the bill also states that the camps can be used to ‘meet other appropriate needs, as determined by the Secretary of Homeland Security,’ an open ended mandate which many fear could mean the forced detention of American citizens in the event of widespread rioting after a national emergency or total economic collapse,” writes Watson.

None of this was mentioned by Beck or Meigs.

Or did they mention the long list of executive orders establishing draconian mechanisms for martial law and detention and work camps, all in violation of Article 4 Section 4 of the United States Constitution (see Establishing martial law in the United States).

Finally, Beck and Meigs don’t want you to know about and would certainly never cover the U.S. Army’s  “Civilian Inmate Labor Program” under Army Regulation 210–35.

Maybe in the future Glenn Beck will commission another investigation into the existence of not only FEMA camps but the plans formulated by government to impose martial law in the United States.

I’m not going to hold my breath in the meantime.

 

 

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Cybersecurity Bill Gives Obama Dictatorial Power Over the Internet (04/06/09)

Posted by 912project on April 6, 2009

Senator Rockefeller declares we’d be better off if the internet was never invented.

As we reported on March 22 when Jay Rockefeller was peddling nonsense about a pimple-faced kid in Latvia taking down the power grid in America with a laptop computer, the current wave of fear-mongering about cyber terrorism is just that — unsubstantiated fear-mongering. Critical networks are largely protected and “nightmarish tales of their vulnerability tend to be largely apocryphal,” according to Gabriel Weimann, author of Terror on the Internet. “Psychological, political, and economic forces have combined to promote the fear of cyberterrorism.”

Indeed, there are political forces are behind Senate bills No. 773 and 778, introduced by Sen. Jay Rockefeller, who declared last month that we would all be better off if the internet was never invented. Rockefeller meant the government would be better off if the internet was never invented. If the internet was never invented, the corporate media would dominate news and information and alternative media restricted to print would have a far more difficult time counter balancing government propaganda. Government and the elite behind it are sincerely worried about the fact increasing numbers of people get their news from alternative media sources on the internet and corporate media newspapers are falling like dominoes.

“If we fail to take swift action, we, regrettably, risk a cyber-Katrina,” said fear-monger Sen. Olympia Snowe, R-Maine, who is co-sponsoring the bill. “We must protect our critical infrastructure at all costs – from our water to our electricity, to banking, traffic lights and electronic health records – the list goes on,” added Rockefeller.

Rockefeller’s bills introduced in the Senate — known as the Cybersecurity Act of 2009 — would create yet another government bureaucracy, the Office of the National Cybersecurity Advisor. It would report directly to Obama. Rockefeller’s legislation would grant “the Secretary of Commerce access to all privately owned information networks deemed to be critical to the nation’s infrastructure “without regard to any provision of law, regulation, rule or policy restricting such access” (see a  working draft of the legislation here).

In other words, Obama would have a Cyber Czar in the Commerce Department and the power to shut down the internet.

The cybersecurity fraud now in motion will grant the Department of Commerce oversight of “critical” networks, such as banking records, would grant the government access to potentially incriminating information obtained without cause or warrant, a violation of the Constitution’s prohibition against unlawful search and seizure, Jennifer Granick, civil liberties director at the Electronic Frontier Foundation, told Mother Jones.

 

“The whole thing smells bad to me,” writes Larry Seltzer for eWeek. “I don’t like the chances of the government improving this situation by taking it over generally, and I definitely don’t like the idea of politicizing this authority by putting it in the direct control of the president.”

Obama’s internet agenda is an extension of his effort to impose government control over the private sector. Republicans call this socialism. In a way it is socialism, but not the kind you were told about in high school — it is a socialism devised by the Trilateralists and Council on Foreign Relations. It is a system of control that will be imposed by the bankers and has nothing to do equality for all individuals or a fair or egalitarian method of compensation for workers. Banker socialism is about serfdom and poverty.

It should be obvious what is going on here. Not if but when the next false flag attack occurs here in America, the elite will turn off the internet in order to control the flow of information. They will tell us they were forced to do this in order to deny terrorists in caves or driving around with Ron Paul bumper stickers on their cars the ability to sabotage the power grid and banks.

Senate bills No. 773 and 778 are about controlling information. The bills have nothing to do with mischievous kids with laptops in Latvia.

http://www.infowars.com/cybersecurity-bill-gives-obama-dictatorial-power-over-internet/

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Economist: US collapse due to ‘fraud,’ Geithner covering up American bank insolvency (4/4/09)

Posted by 912project on April 5, 2009

This PBS  interview is the best one done to date on the financial crisis and the fraud involved. All Americans must watch this- it is crucial.  Watch the interview here:

http://www.pbs.org/moyers/journal/04032009/watch.html

Here’s the transcript, as it is worth studying. Bill Black did a fantastic job in communicating what is REALLY going on.

BILL MOYERS: For months now, revelations of the wholesale greed and blatant transgressions of Wall Street have reminded us that “The Best Way to Rob a Bank Is to Own One.” In fact, the man you’re about to meet wrote a book with just that title. It was based upon his experience as a tough regulator during one of the darkest chapters in our financial history: the savings and loan scandal in the late 1980s. Bill Black was in New York this week for a conference at the John Jay College of Criminal Justice where scholars and journalists gathered to ask the question, “How do they get away with it?” Well, no one has asked that question more often than Bill Black. The former Director of the Institute for Fraud Prevention now teaches Economics and Law at the University of Missouri, Kansas City. During the savings and loan crisis, it was Black who accused then-house speaker Jim Wright and five US Senators, including John Glenn and John McCain, of doing favors for the S&L’s in exchange for contributions and other perks. The senators got off with a slap on the wrist, but so enraged was one of those bankers, Charles Keating — after whom the senate’s so-called “Keating Five” were named — he sent a memo that read, in part, “get Black — kill him dead.” Metaphorically, of course. Of course. Now Black is focused on an even greater scandal, and he spares no one — not even the President he worked hard to elect, Barack Obama. But his main targets are the Wall Street barons, heirs of an earlier generation whose scandalous rip-offs of wealth back in the 1930s earned them comparison to Al Capone and the mob, and the nickname “banksters.” Bill Black, welcome to the Journal.

WILLIAM K. BLACK: Thank you.

BILL MOYERS: I was taken with your candor at the conference here in New York to hear you say that this crisis we’re going through, this economic and financial meltdown is driven by fraud. What’s your definition of fraud?

WILLIAM K. BLACK: Fraud is deceit. And the essence of fraud is, “I create trust in you, and then I betray that trust, and get you to give me something of value.” And as a result, there’s no more effective acid against trust than fraud, especially fraud by top elites, and that’s what we have.

BILL MOYERS: In your book, you make it clear that calculated dishonesty by people in charge is at the heart of most large corporate failures and scandals, including, of course, the S&L, but is that true? Is that what you’re saying here, that it was in the boardrooms and the CEO offices where this fraud began?

WILLIAM K. BLACK: Absolutely.

BILL MOYERS: How did they do it? What do you mean?

WILLIAM K. BLACK: Well, the way that you do it is to make really bad loans, because they pay better. Then you grow extremely rapidly, in other words, you’re a Ponzi-like scheme. And the third thing you do is we call it leverage. That just means borrowing a lot of money, and the combination creates a situation where you have guaranteed record profits in the early years. That makes you rich, through the bonuses that modern executive compensation has produced. It also makes it inevitable that there’s going to be a disaster down the road.

BILL MOYERS: So you’re suggesting, saying that CEOs of some of these banks and mortgage firms in order to increase their own personal income, deliberately set out to make bad loans?

WILLIAM K. BLACK: Yes.

BILL MOYERS: How do they get away with it? I mean, what about their own checks and balances in the company? What about their accounting divisions?

WILLIAM K. BLACK: All of those checks and balances report to the CEO, so if the CEO goes bad, all of the checks and balances are easily overcome. And the art form is not simply to defeat those internal controls, but to suborn them, to turn them into your greatest allies. And the bonus programs are exactly how you do that.

BILL MOYERS: If I wanted to go looking for the parties to this, with a good bird dog, where would you send me?

WILLIAM K. BLACK: Well, that’s exactly what hasn’t happened. We haven’t looked, all right? The Bush Administration essentially got rid of regulation, so if nobody was looking, you were able to do this with impunity and that’s exactly what happened. Where would you look? You’d look at the specialty lenders. The lenders that did almost all of their work in the sub-prime and what’s called Alt-A, liars’ loans.

BILL MOYERS: Yeah. Liars’ loans–

WILLIAM K. BLACK: Liars’ loans.

BILL MOYERS: Why did they call them liars’ loans?

WILLIAM K. BLACK: Because they were liars’ loans.

BILL MOYERS: And they knew it?

WILLIAM K. BLACK: They knew it. They knew that they were frauds.

WILLIAM K. BLACK: Liars’ loans mean that we don’t check. You tell us what your income is. You tell us what your job is. You tell us what your assets are, and we agree to believe you. We won’t check on any of those things. And by the way, you get a better deal if you inflate your income and your job history and your assets.

BILL MOYERS: You think they really said that to borrowers?

WILLIAM K. BLACK: We know that they said that to borrowers. In fact, they were also called, in the trade, ninja loans.

BILL MOYERS: Ninja?

WILLIAM K. BLACK: Yeah, because no income verification, no job verification, no asset verification.

BILL MOYERS: You’re talking about significant American companies.

WILLIAM K. BLACK: Huge! One company produced as many losses as the entire Savings and Loan debacle.

BILL MOYERS: Which company?

WILLIAM K. BLACK: IndyMac specialized in making liars’ loans. In 2006 alone, it sold $80 billion dollars of liars’ loans to other companies. $80 billion.

BILL MOYERS: And was this happening exclusively in this sub-prime mortgage business?

WILLIAM K. BLACK: No, and that’s a big part of the story as well. Even prime loans began to have non-verification. Even Ronald Reagan, you know, said, “Trust, but verify.” They just gutted the verification process. We know that will produce enormous fraud, under economic theory, criminology theory, and two thousand years of life experience.

BILL MOYERS: Is it possible that these complex instruments were deliberately created so swindlers could exploit them?

WILLIAM K. BLACK: Oh, absolutely. This stuff, the exotic stuff that you’re talking about was created out of things like liars’ loans, that were known to be extraordinarily bad. And now it was getting triple-A ratings. Now a triple-A rating is supposed to mean there is zero credit risk. So you take something that not only has significant, it has crushing risk. That’s why it’s toxic. And you create this fiction that it has zero risk. That itself, of course, is a fraudulent exercise. And again, there was nobody looking, during the Bush years. So finally, only a year ago, we started to have a Congressional investigation of some of these rating agencies, and it’s scandalous what came out. What we know now is that the rating agencies never looked at a single loan file. When they finally did look, after the markets had completely collapsed, they found, and I’m quoting Fitch, the smallest of the rating agencies, “the results were disconcerting, in that there was the appearance of fraud in nearly every file we examined.”

BILL MOYERS: So if your assumption is correct, your evidence is sound, the bank, the lending company, created a fraud. And the ratings agency that is supposed to test the value of these assets knowingly entered into the fraud. Both parties are committing fraud by intention.

WILLIAM K. BLACK: Right, and the investment banker that — we call it pooling — puts together these bad mortgages, these liars’ loans, and creates the toxic waste of these derivatives. All of them do that. And then they sell it to the world and the world just thinks because it has a triple-A rating it must actually be safe. Well, instead, there are 60 and 80 percent losses on these things, because of course they, in reality, are toxic waste.

BILL MOYERS: You’re describing what Bernie Madoff did to a limited number of people. But you’re saying it’s systemic, a systemic Ponzi scheme.

WILLIAM K. BLACK: Oh, Bernie was a piker. He doesn’t even get into the front ranks of a Ponzi scheme…

BILL MOYERS: But you’re saying our system became a Ponzi scheme.

WILLIAM K. BLACK: Our system…

BILL MOYERS: Our financial system…

WILLIAM K. BLACK: Became a Ponzi scheme. Everybody was buying a pig in the poke. But they were buying a pig in the poke with a pretty pink ribbon, and the pink ribbon said, “Triple-A.”

BILL MOYERS: Is there a law against liars’ loans?

WILLIAM K. BLACK: Not directly, but there, of course, many laws against fraud, and liars’ loans are fraudulent.

BILL MOYERS: Because…

WILLIAM K. BLACK: Because they’re not going to be repaid and because they had false representations. They involve deceit, which is the essence of fraud.

BILL MOYERS: Why is it so hard to prosecute? Why hasn’t anyone been brought to justice over this?

WILLIAM K. BLACK: Because they didn’t even begin to investigate the major lenders until the market had actually collapsed, which is completely contrary to what we did successfully in the Savings and Loan crisis, right? Even while the institutions were reporting they were the most profitable savings and loan in America, we knew they were frauds. And we were moving to close them down. Here, the Justice Department, even though it very appropriately warned, in 2004, that there was an epidemic…

BILL MOYERS: Who did?

WILLIAM K. BLACK: The FBI publicly warned, in September 2004 that there was an epidemic of mortgage fraud, that if it was allowed to continue it would produce a crisis at least as large as the Savings and Loan debacle. And that they were going to make sure that they didn’t let that happen. So what goes wrong? After 9/11, the attacks, the Justice Department transfers 500 white-collar specialists in the FBI to national terrorism. Well, we can all understand that. But then, the Bush administration refused to replace the missing 500 agents. So even today, again, as you say, this crisis is 1000 times worse, perhaps, certainly 100 times worse, than the Savings and Loan crisis. There are one-fifth as many FBI agents as worked the Savings and Loan crisis.

BILL MOYERS: You talk about the Bush administration. Of course, there’s that famous photograph of some of the regulators in 2003, who come to a press conference with a chainsaw suggesting that they’re going to slash, cut business loose from regulation, right?

WILLIAM K. BLACK: Well, they succeeded. And in that picture, by the way, the other — three of the other guys with pruning shears are the…

BILL MOYERS: That’s right.

WILLIAM K. BLACK: They’re the trade representatives. They’re the lobbyists for the bankers. And everybody’s grinning. The government’s working together with the industry to destroy regulation. Well, we now know what happens when you destroy regulation. You get the biggest financial calamity of anybody under the age of 80.

BILL MOYERS: But I can point you to statements by Larry Summers, who was then Bill Clinton’s Secretary of the Treasury, or the other Clinton Secretary of the Treasury, Rubin. I can point you to suspects in both parties, right?

WILLIAM K. BLACK: There were two really big things, under the Clinton administration. One, they got rid of the law that came out of the real-world disasters of the Great Depression. We learned a lot of things in the Great Depression. And one is we had to separate what’s called commercial banking from investment banking. That’s the Glass-Steagall law. But we thought we were much smarter, supposedly. So we got rid of that law, and that was bipartisan. And the other thing is we passed a law, because there was a very good regulator, Brooksley Born, that everybody should know about and probably doesn’t. She tried to do the right thing to regulate one of these exotic derivatives that you’re talking about. We call them C.D.F.S. And Summers, Rubin, and Phil Gramm came together to say not only will we block this particular regulation. We will pass a law that says you can’t regulate. And it’s this type of derivative that is most involved in the AIG scandal. AIG all by itself, cost the same as the entire Savings and Loan debacle.

BILL MOYERS: What did AIG contribute? What did they do wrong?

WILLIAM K. BLACK: They made bad loans. Their type of loan was to sell a guarantee, right? And they charged a lot of fees up front. So, they booked a lot of income. Paid enormous bonuses. The bonuses we’re thinking about now, they’re much smaller than these bonuses that were also the product of accounting fraud. And they got very, very rich. But, of course, then they had guaranteed this toxic waste. These liars’ loans. Well, we’ve just gone through why those toxic waste, those liars’ loans, are going to have enormous losses. And so, you have to pay the guarantee on those enormous losses. And you go bankrupt. Except that you don’t in the modern world, because you’ve come to the United States, and the taxpayers play the fool. Under Secretary Geithner and under Secretary Paulson before him… we took $5 billion dollars, for example, in U.S. taxpayer money. And sent it to a huge Swiss Bank called UBS. At the same time that that bank was defrauding the taxpayers of America. And we were bringing a criminal case against them. We eventually get them to pay a $780 million fine, but wait, we gave them $5 billion. So, the taxpayers of America paid the fine of a Swiss Bank. And why are we bailing out somebody who that is defrauding us?

BILL MOYERS: And why…

WILLIAM K. BLACK: How mad is this?

BILL MOYERS: What is your explanation for why the bankers who created this mess are still calling the shots?

WILLIAM K. BLACK: Well, that, especially after what’s just happened at G.M., that’s… it’s scandalous.

BILL MOYERS: Why are they firing the president of G.M. and not firing the head of all these banks that are involved?

WILLIAM K. BLACK: There are two reasons. One, they’re much closer to the bankers. These are people from the banking industry. And they have a lot more sympathy. In fact, they’re outright hostile to autoworkers, as you can see. They want to bash all of their contracts. But when they get to banking, they say, ‘contracts, sacred.’ But the other element of your question is we don’t want to change the bankers, because if we do, if we put honest people in, who didn’t cause the problem, their first job would be to find the scope of the problem. And that would destroy the cover up.

BILL MOYERS: The cover up?

WILLIAM K. BLACK: Sure. The cover up.

BILL MOYERS: That’s a serious charge.

WILLIAM K. BLACK: Of course.

BILL MOYERS: Who’s covering up?

WILLIAM K. BLACK: Geithner is charging, is covering up. Just like Paulson did before him. Geithner is publicly saying that it’s going to take $2 trillion — a trillion is a thousand billion — $2 trillion taxpayer dollars to deal with this problem. But they’re allowing all the banks to report that they’re not only solvent, but fully capitalized. Both statements can’t be true. It can’t be that they need $2 trillion, because they have masses losses, and that they’re fine.

These are all people who have failed. Paulson failed, Geithner failed. They were all promoted because they failed, not because…

BILL MOYERS: What do you mean?

WILLIAM K. BLACK: Well, Geithner has, was one of our nation’s top regulators, during the entire subprime scandal, that I just described. He took absolutely no effective action. He gave no warning. He did nothing in response to the FBI warning that there was an epidemic of fraud. All this pig in the poke stuff happened under him. So, in his phrase about legacy assets. Well he’s a failed legacy regulator.

BILL MOYERS: But he denies that he was a regulator. Let me show you some of his testimony before Congress. Take a look at this.

TIMOTHY GEITHNER:I’ve never been a regulator, for better or worse. And I think you’re right to say that we have to be very skeptical that regulation can solve all of these problems. We have parts of our system that are overwhelmed by regulation.

Overwhelmed by regulation! It wasn’t the absence of regulation that was the problem, it was despite the presence of regulation you’ve got huge risks that build up.

WILLIAM K. BLACK: Well, he may be right that he never regulated, but his job was to regulate. That was his mission statement.

BILL MOYERS: As?

WILLIAM K. BLACK: As president of the Federal Reserve Bank of New York, which is responsible for regulating most of the largest bank holding companies in America. And he’s completely wrong that we had too much regulation in some of these areas. I mean, he gives no details, obviously. But that’s just plain wrong.

BILL MOYERS: How is this happening? I mean why is it happening?

WILLIAM K. BLACK: Until you get the facts, it’s harder to blow all this up. And, of course, the entire strategy is to keep people from getting the facts.

BILL MOYERS: What facts?

WILLIAM K. BLACK: The facts about how bad the condition of the banks is. So, as long as I keep the old CEO who caused the problems, is he going to go vigorously around finding the problems? Finding the frauds?

BILL MOYERS: You–

WILLIAM K. BLACK: Taking away people’s bonuses?

BILL MOYERS: To hear you say this is unusual because you supported Barack Obama, during the campaign. But you’re seeming disillusioned now.

WILLIAM K. BLACK: Well, certainly in the financial sphere, I am. I think, first, the policies are substantively bad. Second, I think they completely lack integrity. Third, they violate the rule of law. This is being done just like Secretary Paulson did it. In violation of the law. We adopted a law after the Savings and Loan crisis, called the Prompt Corrective Action Law. And it requires them to close these institutions. And they’re refusing to obey the law.

BILL MOYERS: In other words, they could have closed these banks without nationalizing them?

WILLIAM K. BLACK: Well, you do a receivership. No one — Ronald Reagan did receiverships. Nobody called it nationalization.

BILL MOYERS: And that’s a law?

WILLIAM K. BLACK: That’s the law.

BILL MOYERS: So, Paulson could have done this? Geithner could do this?

WILLIAM K. BLACK: Not could. Was mandated–

BILL MOYERS: By the law.

WILLIAM K. BLACK: By the law.

BILL MOYERS: This law, you’re talking about.

WILLIAM K. BLACK: Yes.

BILL MOYERS: What the reason they give for not doing it?

WILLIAM K. BLACK: They ignore it. And nobody calls them on it.

BILL MOYERS: Well, where’s Congress? Where’s the press? Where–

WILLIAM K. BLACK: Well, where’s the Pecora investigation?

BILL MOYERS: The what?

WILLIAM K. BLACK: The Pecora investigation. The Great Depression, we said, “Hey, we have to learn the facts. What caused this disaster, so that we can take steps, like pass the Glass-Steagall law, that will prevent future disasters?” Where’s our investigation?

What would happen if after a plane crashes, we said, “Oh, we don’t want to look in the past. We want to be forward looking. Many people might have been, you know, we don’t want to pass blame. No. We have a nonpartisan, skilled inquiry. We spend lots of money on, get really bright people. And we find out, to the best of our ability, what caused every single major plane crash in America. And because of that, aviation has an extraordinarily good safety record. We ought to follow the same policies in the financial sphere. We have to find out what caused the disasters, or we will keep reliving them. And here, we’ve got a double tragedy. It isn’t just that we are failing to learn from the mistakes of the past. We’re failing to learn from the successes of the past.

BILL MOYERS: What do you mean?

WILLIAM K. BLACK: In the Savings and Loan debacle, we developed excellent ways for dealing with the frauds, and for dealing with the failed institutions. And for 15 years after the Savings and Loan crisis, didn’t matter which party was in power, the U.S. Treasury Secretary would fly over to Tokyo and tell the Japanese, “You ought to do things the way we did in the Savings and Loan crisis, because it worked really well. Instead you’re covering up the bank losses, because you know, you say you need confidence. And so, we have to lie to the people to create confidence. And it doesn’t work. You will cause your recession to continue and continue.” And the Japanese call it the lost decade. That was the result. So, now we get in trouble, and what do we do? We adopt the Japanese approach of lying about the assets. And you know what? It’s working just as well as it did in Japan.

BILL MOYERS: Yeah. Are you saying that Timothy Geithner, the Secretary of the Treasury, and others in the administration, with the banks, are engaged in a cover up to keep us from knowing what went wrong?

WILLIAM K. BLACK: Absolutely.

BILL MOYERS: You are.

WILLIAM K. BLACK: Absolutely, because they are scared to death. All right? They’re scared to death of a collapse. They’re afraid that if they admit the truth, that many of the large banks are insolvent. They think Americans are a bunch of cowards, and that we’ll run screaming to the exits. And we won’t rely on deposit insurance. And, by the way, you can rely on deposit insurance. And it’s foolishness. All right? Now, it may be worse than that. You can impute more cynical motives. But I think they are sincerely just panicked about, “We just can’t let the big banks fail.” That’s wrong.

BILL MOYERS: But what might happen, at this point, if in fact they keep from us the true health of the banks?

WILLIAM K. BLACK: Well, then the banks will, as they did in Japan, either stay enormously weak, or Treasury will be forced to increasingly absurd giveaways of taxpayer money. We’ve seen how horrific AIG — and remember, they kept secrets from everyone.

BILL MOYERS: A.I.G. did?

WILLIAM K. BLACK: What we’re doing with — no, Treasury and both administrations. The Bush administration and now the Obama administration kept secret from us what was being done with AIG. AIG was being used secretly to bail out favored banks like UBS and like Goldman Sachs. Secretary Paulson’s firm, that he had come from being CEO. It got the largest amount of money. $12.9 billion. And they didn’t want us to know that. And it was only Congressional pressure, and not Congressional pressure, by the way, on Geithner, but Congressional pressure on AIG.

Where Congress said, “We will not give you a single penny more unless we know who received the money.” And, you know, when he was Treasury Secretary, Paulson created a recommendation group to tell Treasury what they ought to do with AIG. And he put Goldman Sachs on it.

BILL MOYERS: Even though Goldman Sachs had a big vested stake.

WILLIAM K. BLACK: Massive stake. And even though he had just been CEO of Goldman Sachs before becoming Treasury Secretary. Now, in most stages in American history, that would be a scandal of such proportions that he wouldn’t be allowed in civilized society.

BILL MOYERS: Yeah, like a conflict of interest, it seems.

WILLIAM K. BLACK: Massive conflict of interests.

BILL MOYERS: So, how did he get away with it?

WILLIAM K. BLACK: I don’t know whether we’ve lost our capability of outrage. Or whether the cover up has been so successful that people just don’t have the facts to react to it.

BILL MOYERS: Who’s going to get the facts?

WILLIAM K. BLACK: We need some chairmen or chairwomen–

BILL MOYERS: In Congress.

WILLIAM K. BLACK: –in Congress, to hold the necessary hearings. And we can blast this out. But if you leave the failed CEOs in place, it isn’t just that they’re terrible business people, though they are. It isn’t just that they lack integrity, though they do. Because they were engaged in these frauds. But they’re not going to disclose the truth about the assets.

BILL MOYERS: And we have to know that, in order to know what?

WILLIAM K. BLACK: To know everything. To know who committed the frauds. Whose bonuses we should recover. How much the assets are worth. How much they should be sold for. Is the bank insolvent, such that we should resolve it in this way? It’s the predicate, right? You need to know the facts to make intelligent decisions. And they’re deliberately leaving in place the people that caused the problem, because they don’t want the facts. And this is not new. The Reagan Administration’s central priority, at all times, during the Savings and Loan crisis, was covering up the losses.

BILL MOYERS: So, you’re saying that people in power, political power, and financial power, act in concert when their own behinds are in the ringer, right?

WILLIAM K. BLACK: That’s right. And it’s particularly a crisis that brings this out, because then the class of the banker says, “You’ve got to keep the information away from the public or everything will collapse. If they understand how bad it is, they’ll run for the exits.”

BILL MOYERS: Yeah, and this week in New York, at this conference, you described this as more than a financial crisis. You called it a moral crisis.

WILLIAM K. BLACK: Yes.

BILL MOYERS: Why?

WILLIAM K. BLACK: Because it is a fundamental lack of integrity. But also because, if you look back at crises, an economist who is also a presidential appointee, as a regulator in the Savings and Loan industry, right here in New York, Larry White, wrote a book about the Savings and Loan crisis. And he said, you know, one of the most interesting questions is why so few people engaged in fraud? Because objectively, you could have gotten away with it. But only about ten percent of the CEOs, engaged in fraud. So, 90 percent of them were restrained by ethics and integrity. So, far more than law or by F.B.I. agents, it’s our integrity that often prevents the greatest abuses. And what we had in this crisis, instead of the Savings and Loan, is the most elite institutions in America engaging or facilitating fraud.

BILL MOYERS: This wound that you say has been inflicted on American life. The loss of worker’s income. And security and pensions and future happened, because of the misconduct of a relatively few, very well-heeled people, in very well-decorated corporate suites, right?

WILLIAM K. BLACK: Right.

BILL MOYERS: It was relatively a handful of people.

WILLIAM K. BLACK: And their ideologies, which swept away regulation. So, in the example, regulation means that cheaters don’t prosper. So, instead of being bad for capitalism, it’s what saves capitalism. “Honest purveyors prosper” is what we want. And you need regulation and law enforcement to be able to do this. The tragedy of this crisis is it didn’t need to happen at all.

BILL MOYERS: When you wake in the middle of the night, thinking about your work, what do you make of that? What do you tell yourself?

WILLIAM K. BLACK: There’s a saying that we took great comfort in. It’s actually by the Dutch, who were fighting this impossible war for independence against what was then the most powerful nation in the world, Spain. And their motto was, “It is not necessary to hope in order to persevere.”

Now, going forward, get rid of the people that have caused the problems. That’s a pretty straightforward thing, as well. Why would we keep CEOs and CFOs and other senior officers, that caused the problems? That’s facially nuts. That’s our current system.

So stop that current system. We’re hiding the losses, instead of trying to find out the real losses. Stop that, because you need good information to make good decisions, right? Follow what works instead of what’s failed. Start appointing people who have records of success, instead of records of failure. That would be another nice place to start. There are lots of things we can do. Even today, as late as it is. Even though they’ve had a terrible start to the administration. They could change, and they could change within weeks. And by the way, the folks who are the better regulators, they paid their taxes. So, you can get them through the vetting process a lot quicker.

BILL MOYERS: William Black, thank you very much for being with me on the Journal.

WILLIAM K. BLACK: Thank you so much.

Moyers interview was huge. It’s now gone viral, and appears tonight as a HEADLINE ON THE RAW STORY!

“Economist: US collapse due to ‘fraud,’ Geithner covering up American bank insolvency”

Here’s a link to the article:

http://rawstory.com/news/2008/Economist_US_collapse_driven_by_fraud_0404.html

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