Daily Archives: 11 April 2012

It’s Official – The Fed Is Now Buying European Government Bonds

open quoteAs if the ‘risk-less’ dollar-swaps the Fed has extended to any and every major central bank were not enough, William Dudley just unashamedly admitted that the Fed now holds ‘a very small amount of European Sovereign Debt’. Explaining this position, as Bloomberg notes:

*DUDLEY: FED HOLDS OVERSEAS SOVEREIGN DEBT TO MANAGE RESERVES
*DUDLEY: HIGH BAR FOR ADDITIONAL PURCHASES OF EUROPE DEBT

Dudley, testifying to a House panel, noted that he doesn’t see more efforts by the Fed to buffer the US from Europe’s tempests and believes European banks are deleveraging in an orderly manner. So not only is the US taxpayer bailing out Europe via the IMF (as we noted here a week ago using Greece as an intermediary) and the Fed is providing limitless USD swap lines but now we join the ECB in monetizing European government bonds – something we warned might happen back in December 2010.close quote (Read more)

ex-FBI informant on faking & entrapping “terrorists”

open quoteMonteilh was involved in one of the most controversial tactics: the use of “confidential informants” in so-called entrapment cases. This is when suspects carry out or plot fake terrorist “attacks” at the request or under the close supervision of an FBI undercover operation using secret informants. Often those informants have serious criminal records or are supplied with a financial motivation to net suspects.

In the case of the Newburgh Four – where four men were convicted for a fake terror attack on Jewish targets in the Bronx – a confidential informant offered $250,000, a free holiday and a car to one suspect for help with the attack.

In the case of the Fort Dix Five, which involved a fake plan to attack a New Jersey military base, one informant’s criminal past included attempted murder, while another admitted in court at least two of the suspects later jailed for life had not known of any plot. close quote (Read more)

parallels between IAEA approach to Iran and mistakes over Iraq’s supposed weapons of mass destruction

open quoteThe head of the International Atomic Energy Agency (IAEA), the nuclear watchdog at the heart of the growing Iranian crisis, has been accused by several former senior officials of pro-western bias, over-reliance on unverified intelligence and of sidelining sceptics.

Yukiya Amano, a veteran Japanese diplomat, took command of the IAEA in July 2009. Since then, the west’s confrontation with Iran over its nuclear programme has deepened and threats of military action by Israel and the US have become more frequent.

At the same time, the IAEA’s reports on Iranian behaviour have become steadily more critical.close quote (Read more)

US acted to conceal evidence of intelligence failure before 9/11

open quoteThe US government shut down a series of court cases arising from a multimillion pound business dispute in order to conceal evidence of a damning intelligence failure shortly before the 9/11 attacks, MPs were told.

Moreover, the UK government is now seeking similar powers that could be used to prevent evidence of illegal acts and embarrassing failures from emerging in court, David Davis, the former shadow home secretary, told the Commons.close quote (Read more)