The US will not prosecute the two AIPAC employees who were accused of spying on behalf of Israel. This was the case that sucked in Rep. Jane Harmon recently for promising some "Israeli agent" that she would try to protect them from prosecution.
It was always a strange case and a surprise that the US would actually treat Israel as a foreign country that spied on the US, despite the experience of the Israel attack on the NSA spy ship Liberty in 1967. So, it's not really a surprise that the US is dropping the case, but the question is why?
Is it because AIPAC and the Jews control the US? Probably not, but Jane Harmon, Joe Lieberman, Raum Emanuel, Larry Summers, and various other powerful Jewish interests no doubt played a role. Maybe dropping the case is better than pursuing it and losing, but if the case had been pursued, some really bad things might have come out about AIPAC and Israel even though they would have won the case. This way it all stays covered up.
Friday, May 01, 2009
Monday, April 27, 2009
US Army Confirms Israeli Nukes
I'm including this report that Israel has nuclear weapons just for the record, since everybody knows it, but maybe Israel's game of plausible deniability is wearing thin.
A Kindred Spirit on Jane Harmon
This post on Sic Semper Tryannis is more outspoken than I. As it says about Rep. Jane Harmon, "From the Israeli perspective, she would have been their spy.... She agreed to help an agent of a foreign government and was to be rewarded with advancement...." She would have been paid to some extent by Haim Saban, the dual national Israeli-American billionaire who already controls the Brookings Institution's Center for Middle East Policy, which bears his name. Saban's funding has basically turned the Center into an Israeli lobby headed by Martin Indyk, an Australian who worked for AIPAC, the premier Israeli lobby, before he became US Ambassador to Israel.
Wednesday, April 22, 2009
Can the Fed Manage the Economy?
I have been a big fan of Ben Bernanke, who along with Hank Paulson jumped into the fray to rescue the economy from it's meltdown last fall. I think it is great that he is a student of the Great Depression and is using his knowledge to try to avoid another one. Things seem to be looking up, but there seems to be some question about whether the green shoots that are springing up will be viable.
In a way, however, despite the fact that Bernanke has done things the Fed has never done before, what he is doing now is the easy part. In general, people are not going to complain too much when you are handing out free money. There will be complaints from the people who are not getting it, which we are seeing now, but it's not like sucking money out and making life harder for people, not just making some people comparatively poorer by handing out money to others. Although their Wall Street neighbors are rich and getting government handouts, regular people are better off than they would be if the Fed had done nothing. It's just that maybe they get to keep most of their jobs, while Wall Street not only gets to keep its jobs, it gets huge bonuses to boot.
Although this course of action seems correct, you have to wonder why the solution to the current meltdown is the same medicine that caused the meltdown -- low interest rates, more consumer spending, freely available mortgages, etc. Doesn't this encourage the same bad risk borrowers to borrow more? They say that refinancing is way up because mortgage rates are at their lowest rates ever. Are these just people turning their homes into ATM machines who missed the last go-round? Instead of more profligate spending, don't we want to encourage more responsible conduct? Ridiculously low interest rates do not do so. People are saving more, but if the interest paid on their savings is virtually nothing, that's not encouraging them to save. If people genuinely expected deflation, that would encourage them to save, because even zero interest is valuable if each dollar buys more at a later date. Yet, the Fed has said it doesn't want deflation either.
The future is more of a problem. If the Fed doesn't turn off the money spigot at the right time, perhaps at exactly the right time (which is hard to determine in real time), then inflation may take off. When it turns off the money spigot, people will experience real financial pain, not just envy. The one person who's done this is Paul Volker. Under him a 14% mortgage was a good interest rate. Will Bernanke be willing to do this? How much political pressure will he come under not to do it? Will he know when to do it?
In a way, however, despite the fact that Bernanke has done things the Fed has never done before, what he is doing now is the easy part. In general, people are not going to complain too much when you are handing out free money. There will be complaints from the people who are not getting it, which we are seeing now, but it's not like sucking money out and making life harder for people, not just making some people comparatively poorer by handing out money to others. Although their Wall Street neighbors are rich and getting government handouts, regular people are better off than they would be if the Fed had done nothing. It's just that maybe they get to keep most of their jobs, while Wall Street not only gets to keep its jobs, it gets huge bonuses to boot.
Although this course of action seems correct, you have to wonder why the solution to the current meltdown is the same medicine that caused the meltdown -- low interest rates, more consumer spending, freely available mortgages, etc. Doesn't this encourage the same bad risk borrowers to borrow more? They say that refinancing is way up because mortgage rates are at their lowest rates ever. Are these just people turning their homes into ATM machines who missed the last go-round? Instead of more profligate spending, don't we want to encourage more responsible conduct? Ridiculously low interest rates do not do so. People are saving more, but if the interest paid on their savings is virtually nothing, that's not encouraging them to save. If people genuinely expected deflation, that would encourage them to save, because even zero interest is valuable if each dollar buys more at a later date. Yet, the Fed has said it doesn't want deflation either.
The future is more of a problem. If the Fed doesn't turn off the money spigot at the right time, perhaps at exactly the right time (which is hard to determine in real time), then inflation may take off. When it turns off the money spigot, people will experience real financial pain, not just envy. The one person who's done this is Paul Volker. Under him a 14% mortgage was a good interest rate. Will Bernanke be willing to do this? How much political pressure will he come under not to do it? Will he know when to do it?
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