Euro breakup looking more likely

Banks Build Contingency for Breakup of the Euro open quoteFor the growing chorus of observers who fear that a breakup of the euro zone might be at hand, Chancellor Angela Merkel of Germany has a pointed rebuke: It’s never going to happen.

But some banks are no longer so sure, especially as the sovereign debt crisis threatened to ensnare Germany itself this week, when investors began to question the nation’s stature as Europe’s main pillar of stability.

On Friday, Standard & Poor’s downgraded Belgium’s credit standing to AA from AA+, saying it might not be able to cut its towering debt load any time soon. Ratings agencies this week cautioned that France could lose its AAA rating if the crisis grew. On Thursday, agencies lowered the ratings of Portugal and Hungary to junk.

While European leaders still say there is no need to draw up a Plan B, some of the world’s biggest banks, and their supervisors, are doing just that.

. . . .

Banks including Merrill Lynch, Barclays Capital and Nomura issued a cascade of reports this week examining the likelihood of a breakup of the euro zone. “The euro zone financial crisis has entered a far more dangerous phase,” analysts at Nomura wrote on Friday. Unless the European Central Bank steps in to help where politicians have failed, “a euro breakup now appears probable rather than possible,” the bank said.close quote (Read more)

***

Premarket: Now Germany can’t sell bonds open quoteOne of Germany’s worst bond sales since the launch of the euro sparked concerns the debt crisis was even beginning to threaten Berlin.The Bundesbank was forced to buy 39 per cent of the 6 billion euros of debt Germany had hoped to sell to investors after banks bought just 3.644 billion euros of the issue. close quote (Read more)

Psychopathic neo-con is more afraid of peace than war

“The biggest problem for the United States is not Iran getting a nuclear weapon and testing it, it’s Iran getting a nuclear weapon and not using it. Because the second that they have one and they don’t do anything bad, all of the naysayers are going to come back and say, “See, we told you Iran is a responsible power. We told you Iran wasn’t getting nuclear weapons in order to use them immediately.”

Obama Lawyers: Killing U.S. Citizens Allied With Al Qaeda is an Executive Decision

open quoteThe U.S. may target and kill U.S. citizens when they take up arms with al-Qaeda, top lawyers in the Obama administration said Thursday.

CIA counsel Stephen Preston and Pentagon counsel Jeh Johnson were questioned at a national security conference about the drone strike that killed American citizen Anwar al-Awlaki, but they would not comment on it specifically. They did say U.S. citizens don’t have legal rights when they side with al-Qaeda.

Johnson maintained that only the executive branch, not the courts, can decide who qualifies as an enemy on a battlefield. Unfortunately for U.S. citizens, the secret, peremptory nature of such executive decisions is not up to a review of any kind and do not require that any evidence be put forth proving the individual’s guilt or association with al-Qaeda.close quote (Read more)

***

Here is a list of who voted for this monstrosity in the Senate. The seven no votes came from:

Coburn (R-OK)
Harkin (D-IA)
Lee (R-UT)
Merkley (D-OR)
Paul (R-KY)
Sanders (I-VT)
Wyden (D-OR)

The 93 other senators voted for it. Terror! Terror! Terror! “War is the health of the state.”

Gingrich Backed Everything the Right Hated About the Bush Years

open quoteHere’s a fun game. Let’s think of all the stuff conservatives say they hated about George W. Bush’s time in office.

No Child Left Behind? Newt Gingrich supported it.

Medicare Part D, the new prescription drug entitlement? Newt Gingrich favored it.

TARP? Newt Gingrich cheered for it.

The Harriet Miers nomination? Newt Gingrich predicted success.

Comprehensive immigration reform? Newt Gingrich endorsed it.

Then there’s “the surge,” Bush’s Iraq war turnaround strategy that conservatives love to laud. Gingrich opposed that.

So what gives?

The former House speaker’s surge makes no sense. The conservative base that was energized partly by fatigue at eight years of Bush missteps is rallying around the candidate who favored them all. What a bizarre turn.close quote (Read more)

Hey, Remember When Newt Gingrich Was Sponsored By a Human Chip-Implant Company?

open quoteRepublican presidential candidate Newt Gingrich once spoke at an Alzheimer’s conference sponsored by PositiveID (PSID), the human microchip implant company that came under fire for injecting 200 Alzheimer’s patients with wireless chips in Florida without properly obtaining their consent.

The issue of whether Americans should receive subcutaneous wireless RFID chip implants that can link to their electronic medical records emerged again in Wisconsin this week, where former governor and Bush Administration secretary of Health and Human Services Tommy Thompson is considering a run for Senate. Thompson was a former board member of VeriChip, the company that renamed itself PositiveID, and once appeared on CNBC with PositiveID CEO Scott Silverman to advocate that everyone receive a chip from birth:close quote (Read more)

Print|Email Republican Jewish Coalition Bars Ron Paul From Presidential Debate, Saying He’s Too “misguided and extreme”

open quoteOn Wednesday, Dec. 7, the Republican Jewish Coalition will host a presidential-candidates forum featuring Michele Bachmann, Herman Cain, Newt Gingrich, Jon Huntsman, Rick Perry, Mitt Romney, and Rick Santorum. Not invited is the GOP candidate currently polling around third in New Hampshire and second in Iowa: Rep. Ron Paul (R-Texas). The explanation:

Paul was not invited to attend the RJC’s candidates forum because the organization – as it has stated numerous times in the past – “rejects his misguided and extreme views,” said [RJC Executive Director Matt] Brooks.

“He’s just so far outside of the mainstream of the Republican party and this organization,” Brooks said. Inviting Paul to attend would be “like inviting Barack Obama to speak.”

. . . .

Anti Defamation League National Director Abraham Foxman has a perhaps unintentionally interesting take about Paul, U.S. politics, and Israel:

with the exception of Ron Paul, there is not much difference between the parties

close quote (Read more)

Secret Fed Loans Gave Banks $13 Billion in Profit Undisclosed to Congress

open quoteThe Federal Reserve and the big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. Now, the rest of the world can see what it was missing.

The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates, Bloomberg Markets magazine reports in its January issue.

Saved by the bailout, bankers lobbied against government regulations, a job made easier by the Fed, which never disclosed the details of the rescue to lawmakers even as Congress doled out more money and debated new rules aimed at preventing the next collapse. close quote (Read more)

Change: whereas Bush fought his wars out in the open and with Congressional approval, Obama fights them covertly and with no public discussion, debate or accountability

open quotetoday we have a column from The New York Times‘ Roger Cohen (presumably no relation) that accomplishes that task with even more stunning (though equally unintentional) brilliance.

Cohen observes, quite rightly, that President Obama — who repeatedly vowed to usher in The Most Transparent Administration Ever — has taken U.S. foreign policy almost completely underground and draped it in sweeping, anti-democratic secrecy:

The Obama administration has a doctrine. It’s called the doctrine of silence. A radical shift from President Bush’s war on terror, it has never been set out to the American people. There has seldom been so big a change in approach to U.S. strategic policy with so little explanation. . . . President Obama has gone undercover.

So finally, after a long search, we have discovered a “change” from Bush’s foreign policy: whereas Bush fought his wars out in the open and with Congressional approval, Obama fights them covertly and with no public discussion, debate or accountability: he’s “undercover.” Cohen lists the numerous covert wars the Obama administration is fighting — meaning wars fought without a whiff of public debate or even acknowledgement — including in Iran, Pakistan, and Yemen (he could have added Somalia). Referring to the numerous murders of Iran’s nuclear scientists (and sometimes wounding of their wives), Terrorist explosions routinely taking place in that country, and cyber attacks on their facilities, Cohen points out that it “would take tremendous naïveté to believe these events are not the result of a covert American-Israel” effortclose quote (Read more)

After Getting Groped By The TSA, I May Just Vote For Ron Paul

open quoteThe U.S. is rapidly turning into a police state, as Canada’s Calgary Herald recently pointed out in an excellent op-ed penned by Kris Kotarski.

How dare we condemn human rights abuses in the Middle East when we treat productive members of our own society — frequent business travelers — like drug mules and felons.

The TSA is unconstitutional. Security at the expense of our most basic freedoms is not freedom at all.

I’ve disagreed with some of Ron Paul’s economic views . . . he is the ONLY CANDIDATE who seems to care that our civil rights have been egregiously rolled back over the past decade.

This alone makes him worth my vote. And I can’t in good conscience vote for President Obama’s re-election.

close quote

Netanyahu blasts Arab Spring

open quoteBut time has proved him right, Netanyahu said. His forecast that the Arab Spring would turn into an “Islamic, anti-Western, anti-liberal, anti-Israeli and anti-democratic wave” turned out to be true, he said.

Netanyahu also slammed Western leaders, and especially U.S. President Barak Obama, who had pushed Mubarak to resign from power. At the time this was happening Netanyahu said in closed talks that the American administration and many European leaders don’t understand reality. On Wednesday, he called them “naive.”

“I ask today, who here didn’t understand reality? Who here didn’t understand history?” he called from the Knesset podium. “Israel is facing a period of instability and uncertainty in the region. This is certainly not the time to listen to those who say follow your heart.”
Netanyahu used the upheaval in the Arab world to justify his government’s inaction vis-a-vis the peace process with the Palestinians. close quote (Read more)