U.S.S. Liberty

“Navy Vet Honored, Foiled Israeli Attack

. . . . Terry Halbardier[‘s] bravery and ingenuity as a 23-year-old Navy seaman spelled the difference between the murder of 34 of the USS Liberty crew and the intended massacre of all 294.

The date was June 8, 1967; and for the families of the 34 murdered and for the Liberty’s survivors and their families, it is a ‘date which will live in infamy’ — like the date of an earlier surprise attack on the U.S. Navy.

The infamy is two-fold: (1) the Liberty, a virtually defenseless intelligence collection platform prominently flying an American flag in international waters, came under deliberate attack by Israeli aircraft and three 60-ton Israeli torpedo boats off the coast of the Sinai on a cloudless June afternoon during the six-day Israeli-Arab war; and (2) President Lyndon Johnson called back carrier aircraft dispatched to defend the Liberty lest Israel be embarrassed — the start of an unconscionable cover-up, including top Navy brass, that persists to this day.

Given all they have been through, the Liberty survivors and other veterans – who joined Halbardier to celebrate his belated receipt of the Silver Star – can be forgiven for having doubted that this day would ever come. In the award ceremony at the Visalia (California) office of Rep. Devin Nunes, the Republican congressman pinned the Silver Star next to the Purple Heart that Halbardier found in his home mailbox three years ago.

Nunes said, ‘The government has kept this quiet I think for too long, and I felt as my constituent he [Halbardier] needed to get recognized for the services he made to his country.’

. . . .

The Liberty survivors are big on getting the truth out about what actually happened that otherwise beautiful day in June 1967. Last Wednesday’s award of the Silver Star to Terry Halbardier marked a significant step in the direction of truth telling. Is it too much to hope that the example set by Nunes may embolden other lawmakers to right the wrongs done to their Liberty-veteran constituents — and thus to chip away at what’s left of the cover-up?

Halbardier said he accepted his Silver Star on behalf of the entire 294-man crew. He and fellow survivor Don Pageler expressed particular satisfaction at the wording of the citation, which stated explicitly — with none of the usual fudging — the identity of the attackers: ‘The USS Liberty was attacked by Israeli aircraft and motor torpedo boats in the East Mediterranean Sea. . . .’ In the past, official citations, like Captain McGonagle’s, had avoided mentioning Israel by name when alluding to the attack.

I think former U.S. Ambassador Edward Peck put it best in condemning this kind of approach as ‘obsequious, unctuous subservience to the peripheral interests of a foreign nation at the cost of the lives and morale of our own service members and their families.’ Strong words for a diplomat. But right on target.

Were it not for Halbardier’s bravery, ingenuity, and technical expertise, the USS Liberty would surely have sunk, taking down much – if not all – of the crew. Israeli commando helicopters were ready to take care of any personnel still that survived the sinking.

The first thing the Israeli aircraft bombed and strafed were the Liberty’s communications antennae and other equipment. They succeeded in destroying all the antennae that were functional. One antenna on the port side, though, had been out of commission and had escaped damage.
In receiving the Silver Star, Halbardier made light of his heroism, claiming that he was just a guy from Texas who could do a whole lot with simple stuff like baling wire. (In the infantry we called this kind of thing a ‘field expedient.’) In any case, with his can-do attitude and his technical training, he figured he might be able to get that particular antenna working again. But first he would have to repair a cable that had been destroyed on deck and then connect the antenna to a transmitter.

The deck was still being strafed, but Halbardier grabbed a reel of cable, ran out onto the deck, and attached new cable to the antenna so a radioman could get an SOS out to the 6th fleet in the Mediterranean.

Voila. ‘Mayday’ went out; almost immediately the Israeli aircraft and torpedo ships broke off the attack and went back to base; the Israeli government sent a quick apology to Washington for its unfortunate ‘mistake;’ and President Johnson issued orders to everyone to make believe the Israelis were telling the truth — or at least to remain silent.

To their discredit, top Navy brass went along, and the Liberty survivors were threatened with court martial and prison if they so much as mentioned to their wives what had actually happened. They were enjoined as well from discussing it with one another. As Liberty crewman Don Pageler put it, ‘We all headed out after that, and we didn’t talk to each other.’

. . . .

Despite Israeli protestations, the accumulated evidence, including intercepted voice communications, is such that no serious observer believes Israel’s ‘Oops’ excuse of a terrible mistake.

The following exchanges are excerpts of testimony from U.S. military and diplomatic officials given to Alison Weir, founder of ‘If Americans Knew’ and author of American Media Miss the Boat:

Israeli pilot to ground control: ‘This is an American ship. Do you still want us to attack?’
Ground control: ‘Yes, follow orders.’
. . . . . . . . . . . . . . . . . . . . . ..

‘But sir, it’s an American ship — I can see the flag!’
Ground control: ‘Never mind; hit it!’

Haviland Smith, a CIA officer stationed in Beirut during the Six-Day War, says he was told that the transcripts were ‘deep-sixed,’ because the U.S. government did not want to embarrass Israel.”

Read more at afterdowningstreet.org or visit ussliberty.org.

Returning to a Barter Economy

One of my favorite things about bartering is that it becomes difficult for government to stick their greedy, stupid paws into our transactions and take away a share for foreign wars, domestic spying, bank bailouts, etc.

“With trust in the world’s currencies at its lowest point in recent memory, bartering has reemerged as a possible solution to the credit crunch. All but forgotten, bartering predates any modern form of currency, and arose naturally in the ancient world as the primary means of economic exchange. Today, there are a number of barter systems in place alongside replacement currencies that operate on a local level in cities or small rural villages. Whether these approaches come from a hot Web 2.0 startup or a tiny Thai village, they are changing the economic landscape. Here’s a look at some of the most promising. . . . .

. . . . While few might stop to think about the legal ramifications of bartering, it should be noted that even though it seems informal, bartering is a transaction just like any other. For those trading goods or services of a marked value, a contract ought be used to protect both parties. According to SMU Law professor, Mary Spector, every aspect of the exchange should be outlined, for example, with regards to pet care being exchanged: ‘Would [four hours of pet care] mean grooming the pet? Walking the pet? How many pets would be involved? Is it just dogs or would it be dogs and fish?’

Similar to the legal ramifications, there are also tax implications of barter-based commerce. According to the IRS, ‘If you conduct any direct barter – barter for another’s products or services – you will have to report the fair market value of the products or services you received on your tax return.'” (Read more from mint.com)

Treasury Toxic Asset Program Rife With Conflicts Of Interest

“The hiring of private firms to provide ‘independent’ advice to both the Treasury Department and the Federal Reserve raises concerns about potential conflicts of interest, according to a letter written by the Project on Governmental Oversight (POGO) and delivered to key members of Congress.

. . . .

‘POGO is concerned . . . about the conflicts of interest that could arise if these fund managers are also investing in the same types of assets for their private clients.'” (Read more from huffingtonpost.com)

The line bw government and business is now perverted. The best thing government can do is stay out of it, and leave us all alone.

Obama: For the good of the state, property rights are naught

“One of the more disturbing actions on the part of the Washington establishment has been the blatant disregard for property and contract rights. First, consider the case of Chrysler. The government, while coming to the aid of a dying Chrysler, lobbed offers to its lenders, the bondholders. A group of dissident bondholders spurned the government’s offer that would have given them a minuscule stake in the company while the UAW received a majority ownership position.

In response, the president denounced the bondholders, publicly proclaiming their obligation to sacrifice and referring to them as ‘vultures’ because they insisted on maintaining their rights as senior creditors. Chrysler’s bondholders, by law, are secured creditors, and they hold a senior ranking above unsecured creditors or shareholders in a bankruptcy or reorganization. Yet they were vilified and bullied for refusing to agree to a shoddy deal. Some of the holdout bondholders finally did buckle under; they dropped their legal challenge and agreed to the government’s lowball offer, but only because they were strong-armed by Washington’s bully tactics. Thomas Lauria, the attorney representing the group, stated that his clients weren’t able to ‘withstand the enormous pressure and machinery of the US government.’ Thus the senior creditors were plundered while ownership was redistributed to the UAW, whose members are junior creditors. This makes a mockery of US securities law.

The bailout and ensuing appropriation of General Motors is no less tragic.” (Read more from mises.org)

Israeli diplomats told to take offensive in PR war against Iran

“Organizing demonstrations in front of Iranian consulates worldwide, staging mock stonings and hangings in public, and launching a massive media campaign against Iran – these are just some of the steps Israeli diplomats have been told to take in the coming weeks. The goal, according to a senior Foreign Ministry official, is ‘to show the world that Iran is not a Western democracy’ in the run-up to the country’s presidential election on June 12.

About a week ago, the head of the ministry’s Task Force on Isolating Iran sent a classified telegram to all Israeli embassies and consulates, titled ‘Activities in the Run-up to Iran’s Presidential Election.’ It detailed things Israeli representatives should do before, during and after the election.” (Read more from Haaretz.com)

Austrian Economics gaining popularity, rebutting critics

“The Mises-Hayek theory of the business cycle — and of our recent housing bubble in particular — is gaining more and more adherents in the “real world.” To give anecdotal evidence: Five years ago, when I’d write a Mises Daily article, the fan mail would pour in from college students. But now, I get questions from hedge-fund managers and others working in the financial sector. Austrian economics is no longer a hobby; this is serious stuff.

Because of the popularity of the Austrian message — where Exhibit A is the Ron Paul campaign — mainstream economists are taking the time to explain why (in their opinion of course) the Mises-Hayek theory is nonsense. In the past I’ve answered Tyler Cowen and Paul Krugman’s objections, but today’s focus will be the recent critique penned by Australian economist John Quiggin.

Quiggin’s piece deserves careful scrutiny. In the interest of brevity, I am going to dive right into his objections. If you need a more introductory exposition of Austrian business-cycle theory (ABCT), try this collection or, if you prefer a PowerPoint presentation, check out Roger Garrison’s amazing creations.” (Read more from mises.org)

On Social Security

“Social Security is a “pay-as-you-go” system. This means that when you work, the government takes your money and gives it to Social Security recipients. In order to get workers to accept this system, the government promises to take other people’s money and give it to you when you retire. Think of it as an exponentially larger version of Bernie Madoff’s Ponzi scheme.

As long as a lot of people die before collecting any benefits, or die without collecting many benefits, the system is financially sound. . . .

Each worker’s income below about $106,800 is taxed at a 12.4 percent rate. There are no deductions for this tax. All income is taxable income. Even those in the lowest income brackets have roughly one-eighth of their income taken from them to fund the Social Security system.

Few workers, however, understand the tax burden of the Social Security system. On their paychecks, they see that 6.2 percent of their gross pay goes to pay for Social Security. What they don’t see is that employers match this tax payment with an equal 6.2 percent payment. It may seem that employers are paying half of the Social Security taxes, but that’s not the case. Even though the employers are legally liable for one-half of the tax, they shift the tax onto workers in the form of lower gross wages. Therefore, the Social Security tax burden, 12.4 percent of each worker’s gross pay, falls on workers. Half of this burden is hidden from the workers.

Currently, the Social Security Administration is running a budget surplus. . . .

What has happened to this surplus? The SSA took in $180 billion more than it spent in 2008. However, the federal government spent this $180 billion on other programs. Since the funds were spent on something other than Social Security, the government declares that it loaned itself the $180 billion, calling such “lending” intragovernmental debt. . . .

Think of this type of lending for a moment. The federal government is in debt to itself. Compare this to debt in the private sector. No business declares that it’s deep in debt because it loaned itself money. It’s the same with families. Parents don’t lay awake at night trying to figure out how to repay the money they loaned themselves. The government, however, thinks that it makes perfect sense to collect $100 of tax revenue, spend the $100, and then declare that it now owes itself $100. This scheme is not limited to Social Security. Currently, federal intragovernmental debt for all programs totals $4.3 trillion. . . .

Making the system sustainable will require higher taxes or benefits reductions. These reductions could be achieved by either reducing the benefits per recipient or reducing the number of beneficiaries — say, by raising the minimum age requirements. The solution is to give workers a negative rate of return on the money that is taken from them. It would also help if some workers collected no benefits at all. Workers who are taxed and then die before collecting any benefits are a boon to the system. Maybe the federal government should rethink its war on tobacco.

This system is a massive income-redistribution scheme, taking one-eighth of most workers’ incomes. The total tax burden is hidden from the workers. The tax revenues have been used to cover the deficits in the rest of the government’s budgets, and the only way to make the system sustainable is to give the participants a negative rate of return on their money.

The Social Security system has run its course. It’s unfair and it’s economically destructive. It’s time for the program to be abolished.” (Read more at mises.org)

Note: The Social Security Act was signed into law August 14th, 1935 by FDR. In terms of liberty, the WWII generation was not our greatest, but our worst.