Today's Stories

August 4, 2009

Mike Whitney
Bernanke's Shell Game

Dave Lindorff
The Recession Isn't Over, By a Long Shot

Jonathan Cook
Israeli's Campaign to Silence Human Rights Groups

Jeff Sher
Making a Mess of Health Care Reform

Uri Avnery
A Jeremiad

Mark Weisbrot
U.S.-Brokered Mediation in Honduras Has Failed

Alvaro Huerta
Hold That Dustbin! So Much for the "End of Racism"

August 3, 2009

Pam Martens
Millions of Americans Pushed Into No-Law System by Colluding Banks

Anthony DiMaggio
Media Backlash: Obama and the Settlements

Udi Aloni
And Who Shall I Say is Calling? A Plea to Leonard Cohen

Mike Roselle
See the Mountains of WestVirginia ... Before They're Blown Up!

Dr. Susan Block
Beat It! Sex, Death and Michael Jackson

Roy Bourgeois / Margaret Knapke
School of Coups

Joe Bageant
A Yard Sale in Chernobyl

Dina Jadallah
Hiding the State

Dave Lindorff
Of Blue Dogs and Jellyfish

Martha Rosenberg
Grand Closings in Evanston: How the Recession is Hitting Illinois

Website of the Day
Why We Can't "Afford" Health Care

July 31 - August 2, 2009

Alexander Cockburn
The Biden and Clinton Mutinies

Gabriel Kolko
Searching For Enemies

John Prados
The Intelligence Oversight Mess

Joe Bageant
The Bastards Never Die

Tim Wise
Rationalizing Racial Oppression

Carl Ginsburg
Frist First: Follow the Money (and Find the Plump Heart of "Health Care")

Michael Fox
The Honduran Coup as Overture

John Lindsay-Poland
Revamping Plan Colombia

Michael Winship
Pay-to-Play: Washington's Sport of Kings

Rev. William Alberts
White Men Can Jump ... to Conclusions

Andy Worthington
Judge Orders Release of Tortured Gitmo Prisoner

Steve Breyman
Counting the Unemployed

Cyrus Bina
Racism, Class and Profiling

Missy Beattie
Promises Ignored

Ron Jacobs
Into the Vapid: Consuming the Cultural Product

Willie L. Pelote, Sr.
Party of Concessions: Democrats Never Learn

Lucia Alvarez
Fall of the House of Kirchner? Return of the Right in Argentina

Dave Lindorff
David Brooks' White Guy Nightmare

Lawrence R. Velvel
Madoff: What Should be Done Now?

Omar Barghouti /
Sid Shniad
United for Freedom and Universal Justice

James L. Secor
The Name of the Game is Wipe-Out

Belén Fernández
Zelaya in Nicaragua: Has Another Constitution Been Violated?

Jeffrey St. Clair
Frank Lloyd Wright in Hollywood: the Ennis House as Imperial Ruin

David Yearsley
Beauty in Dark Places: Berlin's Olympic Stadium

Brian J. Foley
Pre-Eating: a Threat to Restaurants Everywhere

Alan Cabal
Onward, Into the Fog: Thomas Pynchon's
"Inherent Vice"

Kim Nicolini
The Way War Feels

Lorenzo Wolff
The Way It Felt the First Time: the Jump Rope Magic of the Shangri-Las

Poets' Basement
Four Poems From the Chinese

Website of the Weekend
Obama's Ex-Doc Knocks ObamaCare

July 30, 2009

Patrick Cockburn
Victims of a Covert Tit-for-Tat War

Gareth Porter
Afghanistan's US-Backed Child-Raping Police

Saul Landau
Summer of Denial

Greg Grandin
Honduran Coup Over?

Diane Farsetta
Pentagon Pundits Get a Pass

Stephen Soldz
The King Case, the APA and the Missing Ethics Investigation

Alan Farago
Learning How to Survive in a Depression From "Weeds"

David Macaray
Cops and Labor Unions

Mike Howells /
Jay Arena
Volunteerism Will Not Rebuild the Gulf Coast

Christopher Brauchli
Oatmeal Envy

Website of the Day
Changing the SOFA

July 29, 2009

Carl Ginsburg
Our Crisis, Their Gain

Clifton Ross
From Tegucigalpa to El Paraiso: a Voyage From Curfew to State of Siege

Paul Craig Roberts
How Fake is the "Recovery"?

Franklin C. Spinney
Winning Hearts and Minds, Pentagon Style

James Bovard Lackawanna Six: Bogus Charges and Martial Law

Anthony DiMaggio
Health Care, the Media and Public Opinion

Bouthaina Shaaban
How Will Arabs Wake Up?

Greg Moses
A Catch and Trade Policy for Labor Costs

Wajahat Ali
No Racism in Obama's Post-Race America?

Gary Leupp
Beer Will Not Solve This

Ayesha Ijaz Khan
Musharraf, Imran Khan and Overseas Pakistanis

Website of the Day
Why Single-Payer Gets No Respect

July 28, 2009

Jean Bricmont
Bombing for a Juster World?

Uri Avnery
Obama, Netanyahu and the Settlements

Dean Baker
Right to Rent: a Remedy for the Foreclosure Crisis

Heather Gray
Stupid Cop Tricks: Driving Too Close to a White Female and Other Episodes in Racist Policing

Jonathan Cook
Can an "Arab Soul" Yearn for Israel's Anthem?

Winslow T. Wheeler
Beyond the F-22: the Future of Pentagon Reform

Belén Fernández
Thomas Friedman Does Afghanistan

Carl Finamore
The Hotel Workers' Kickass Local 2

Eli Jelly-Schapiro
Striking the World Cup

Harvey Wasserman
We All Stand Before Peltier's Parole Board

Website of the Day
Behind the Wheel

July 27, 2009

Ishmael Reed
Gates: Post-Race Scholar Yells Racism

Patrick Cockburn
Elections Shake Kurdistan

Roger Burbach
Hillary and Obama Nix Change in Honduras

Steve Breyman
Bomber Joe and Russia: Why is Biden Channeling Cheney?

Ramzy Kysia
Gaza: On the Right of Resistance

Stephen Soldz
Will the American Psychological Association Renounce the Nuremberg Defense?

Raymond J. Lawrence
Sexual Hocus Pocus in the Episcopal Church

Greg Moses
The Color Line is Black

Binoy Kampmark
Swine Flu Panic

Kim Ives
Lavalas and Haiti's Student Union Unite

Website of the Day
Meet the Paid Assassins of Health Care

July 24-26, 2009

Alexander Cockburn
"A Damned Murder, Inc."

Clifton Ross
Surreal Honduras

Patrick Cockburn
Party of "Change" Challenges Old Guard in Kurdistan

William Polk
Report Card on Obama From a New Frontiersman

David Sterritt
Screening the Politics Out of the Iraq War

Ray McGovern
Hooded in Bush's Hood

David Lindorff
Cops Gone Wild

Hannah Mermelstein
"The War is With the Arabs"

Carl Ginsburg
The Actually Existing Health Care System

Helen Redmond
The Selling of Single-Payer Features

John Ross
The Song of the Guerrilla

Bill Simpich
Fair Play for Cuba and the Cuban Revolution

Mark Weisbrot
Learning From China on How to Beat the Recession

Lee Sustar
U.S. Labor in Crisis

David Macaray
Union Workers Forced to Accept Massive Cuts

Felipe Matsunaga
Obama's Slow (and Familiar) Dance With Cuba

Sara Mann
Why Health Care Will Kill My TV

Martha Rosenberg
Which is Worse? Germs in Our Food or the Antibiotics That Kill Them?

Missy Beattie
Cha-ching Culture

David Ker Thomson
Empty Nest: a Natural History of Now

Ron Jacobs
United4Iran, a Footnote

Stephen Martin
The Crying of Lots 1 Thru 50

David Yearsley
Psst, I Show You a Feelthy Gluck

Gilad Atzmon
Bruno: a Glimpse Into Zionism?

Kim Nicolini
Guilty Laughter in the Dark: Seeing Brüno Twice

Poets' Basement
Kakak and McLellan

Website of the Weekend
Dead Prez: Summertime

July 23, 2009

Jeffrey St. Clair
The Masters of Perfidy: AIG and the System

Saul Landau /
Nelson Valdés
Hypocrisy and the Honduran Coup: Term Limits Only Apply When Governments Help People

Jonathan Cook
The Reality of Israel's "Open" Jerusalem

Nadia Hijab
Israeli Warships in the Red Sea

Dave Lindorff
Living in a Police State: the Gates Incident

Laura Carlsen
21st Century Coups d'Etat

Steve Breyman
Bankers Beware?

Ellen Brown
How California Could Turn Its IOUs Into Dollars

Norman Solomon
Spinning Health Care

Jorge Mariscal
Youth Activists Demand Military-Free Schools

Website of the Day
Copy-Editing Sarah Palin

July 22, 2009

Bernard Chazelle
How to Argue Against Torture

Nikolas Kozloff
The Coup and the U.S. Airbase in Honduras

Carl Ginsburg
The Recovery, Phase Two

Clifton Ross
Back to the Future? Return to El Salvador

Anthony DiMaggio
Health Care, Media and the Case for Socialized Medicine

Michael Donnelly
The Whoppers Behind WOPR

Nadia Hijab
Memoirs of a Lost Arab World

Dedrick Muhammad
Structural Inequality: News Not Fit to Print?

Charles Thomson
Cronyism at the Tate

Alan Farago
Ted Williams and the Florida Keys

Website of the Day
Himmelstein: Howard Dean is a Liar

July 21, 2009

Sasan Fayazmanesh
The Iranian Election and Its Aftermath

Uri Avnery
Breaking the Silence on Israeli War Crimes

Dean Baker
Séance on Wall Street

Jonathan Cook
Team Twitter: Israel's Internet War

Dave Lindorff
Saving Private Bergdahl

Andy Worthington
Interrogating the Uighurs

David Macaray
Heat, Dust and OSHA

Carl Finamore
The Deferential Party

Harvey Wasserman
Cronkite and Three Mile Island

Walter Brasch
The Marie Antoinettes of Health Care

Website of the Day
Linebaugh: Magna Carta and the Commons

July 20, 2009

Pam Martens
Judicial Apartheid

Nikolas Kozloff
Honduras and the Big Stick: Obama's Bullish Behavoir in Latin America

Paul Craig Roberts
Threatening Iran

Deepak Tripathi
Obama's Policy on China and Iran

Ira Glunts
Netanyahu's Time Bomb: Building in the Vineyard of the Mufti

P. Sainath
Put Your Money Down, Boys

Binoy Kampmark
The Moon Landing and the Cold War

Stephen Fleischman
The First Anchorman

Norman Solomon
Cronkite and Vietnam: Beyond the Hype

Andy Worthington
Predictable Chaos as Gitmo Trials Resume

Ron Jacobs
Out of the Haze, Into the Darkness: Recalling 1979

Website of the Day
Why Publishing Can't be Saved (as it is)

July 17-19, 2009

Alexander Cockburn
"Watch What We Do, Not What We Say"

Nikolas Kozloff
Chiquita in Latin America: From Arbenz to Zelaya

Joanne Mariner
CIA Apples: Bad at the Top of the Tree

Joe Bageant
America's White Underclass

Jonathan Cook
Israeli Road Signs: Wiping Arabic Names Off the Map

Saul Landau
Why So Much Sympathy for Madoff's Dupes and So Little for the Poor?

John Ross
Jurassic Fallout in Mexico

Sue Sturgis
Senator Sessions, Race and Impartiality

Anita Sinha /
Daniel Farbman
The Ricci Case and the Myth of Special Treatment

Peter Morici
Obama's Donut Economics

Pervez Hoodbhoy
Whither Pakistan? A Five-Year Forecast

Ramzy Baroud
Gaza and the Language of Power

Greg Moses
The Real Demand Crisis

Kia Mistilis
The Niger Delta Crisis

Missy Beattie
The Placebo President

David Ker Thomson
How Not to See: Things to Tell Your Eyeballs

James G. Abourezk
Evil Spirits: the Booze Strip in Indian Country

Paul Richards
Why Does Jon Tester Want to Log Wild Montana?

Dave Lindorff
Dark Days for Working People (With Three Small Rays of Light)

Marc Levy
Just Like Hanoi Jane

Matt Siegfried
The Good War Goes Hot

Stephen Martin
Panopticon Blues

Ben Sonnenberg
Sembène's Faat Kiné

David Macaray
Casablanca: When Melodrama Trumped History

Charles R. Larson
A Pakistani, Victorian Novel Celebrating Women

David Yearsley
That's Women for You: Abbas Kiarostami's Così

Lorenzo Wolff
Death Rattle and Roll: the Sound From England's Gutters

Poets' Basement
Payne, Anderson and Williams

Website of the Weekend
Hitler Learns of Sarah Palin's Resignation

July 16, 2009

Paul Craig Roberts
What Economy?

Afshin Rattansi Iranian Planes and the Hidden Toll of Economic Sanctions

Gregory V. Button
The Search for Environmental Justice in Perry County, Alabama

Evan Knappenberger
Profile of a Deserter

Michelle Bollinger
Why is Leonard Peltier Still in Prison?

Russell Mokhiber
White House to ABC News: No Obama Single-Payer Doc

Belén Fernández
Iranian Penetration, Oh My!

Alice Walker
What is Torture Like? A Letter to Obama

Nicholas Dearden
Paying the Climate Debt: the G-8's Troubling Model

Albert Osueke
Sotomayor and the Identity Mountain

Website of the Day
Sotomayor for the Prosecution

July 15, 2009

Manuel Garcia, Jr.
The Assassination Bureau

Vijay Prashad
A Political Recession

Dean Baker
Stimulus Arithmetic

Ray McGovern
Cheney Sweating Bullets

Jonathan Cook
Jenin's Model of "Economic Peace"

David Rosen
Shouts From the Gallery: the Sotomayor Hearings and the Culture Wars

Eric Walberg
Uighurs vs. Afghans: a Study in Contrast

Greg Moses
Three Dimensions of a Complete Stimulus Plan

Sousan Hammad
Decolonizing Israel

Binoy Kampmark
The Trial of Charles Taylor

Tracy McLellan
The Story of My Arrest

Website of the Day
11 Days in Saudi Gitmo

July 14, 2009

Eamonn McCann
The Emperors of Bombast: Bono, U2 and the Crisis of World Capitalism

Joanne Mariner
Obama's New Euphemism

Franklin Spinney
The Taliban Rope-a-Dope

Steve Heilig
Walking Mount Tam: an Interview with Gary Snyder

Ali Abunimah
Hamas' Choice

Dave Lindorff
The End of "Nice" Health Care Reform

Nikolas Kozloff
The Politics of Destabilization: McCain and Honduras

Ellen Brown
From Golden State to Subprime State

Alice Slater
How US Missile Defense Plans Sabotaged Nuclear Disarmament Talks With Russia

Ron Jacobs
Protest U.S. Aggression

Joe Allen
The Fight to Save James Hickman in Jim Crow-Style Chicago

Website of the Day
Mel Brooks Does the French Revolution

July 13, 2009

Uri Avnery
The Essence of the Regime

Mike Whitney
The Deflating Economy

P. Sainath
How the World Depression Hits Orissa

Gareth Porter
A US / Iraq Conflict on Iran

Paul Moore
Rap in the Streets, Rap in the Suites

Tim Wise
Off the Deep End: Private Clubs, Public Prejudice

Andy Worthington Former Insider Shatters Credibility of Military Commissions

David Macaray
Cartoon Voices: Serf's Up in Hollywood

Cal Winslow
The Healthcare Worker War

Niranjan Ramakrishnan
Spring in the Time of Obama

Website of the Day
Washington's Deep Game with China

July 10-12, 2009

Alexander Cockburn
Obama's Biden Problem

José Pertierra
The Cuban Five: a Cold War Case in a Post-Cold War World

John Ross
After the Honduran Coup

Conn Hallinan
The Settlements and the Quartet

Nikolas Kozloff
C Street Band: Sex Scandals, Moral Hypocrisy and the Far Right Agenda in Latin America

Clifton Ross /
Marcy Rein
U.S. and Honduras: Dr. Jekyll and Mr. Good Neighbor

Carl Ginsburg
Summers' Clouded Crystal Ball

Michael Neumann
Say It Loud, Say It Proud: There is No God!

Gilad Atzmon
The Left and Islam: Thinking Outside of the Secular Box

Jeffrey St. Clair
The Parable of the Golden Parachute

Ellen Hodgson Brown
California Dreamin': How the State Can Beat Its Budget Woes

Jim Goodman
Rural America Needs More Than Listening Sessions

Christopher Bickerton
Europe's New Politics of Hard Times

Wendell Potter
Health Care Industry Adopts Tobacco Lobby's Tactics

Dave Lindorff
CIA Lies: Why Isn't Congress in Open Revolt?

David Ker Thomson
Switchbacking Toward Bastille Day

Anthony DiMaggio
The Michael Jackson Feeding Frenzy

Raymond Lawrence
Michael Jackson as Sexual Pervert: the Calumnies of Peter King

Walid El Houri
Neda and Marwa: a Tale of Two Murdered Women

Stephanie Westbrook
Yes, We Camp

Roger Gaess
The Shades of Highgate Cemetery

David Yearsley
Tara, America's Dream House

Kim Nicolini
Caution: Men at Work, Robbing Banks

Poets' Basement
Five Poems From the Japanese

Website of the Weekend
Free Tiga and Hugh!

August 4, 2009

Isn't Anyone Watching the Fed?

Bernanke's Shell Game

By MIKE WHITNEY

Fed Chairman Ben Bernanke is a man who knows how Washington works and uses that knowledge to great effect.  His appearences on Capital Hill are always worth watching. He sits politely with his hands folded in front of him playing the bashful professor while one one preening congressman after another makes a fool out of himself. In contrast, Bernanke looks modest and thoughtful, faithfully upholding the public's trust.  But things aren't always as they seem. The Fed chief is sticking it to the American people big-time and no one seems to have any idea of what's really going on. Former hedge fund manager Andy Kessler sums it up in a recent Wall Street Journal article, "The Bernanke Market". Here's a clip:

"By buying U.S. Treasuries and mortgages to increase the monetary base by $1 trillion, Fed Chairman Ben Bernanke didn't put money directly into the stock market but he didn't have to. With nowhere else to go, except maybe commodities, inflows into the stock market have been on a tear. Stock and bond funds saw net inflows of close to $150 billion since January. The dollars he cranked out didn't go into the hard economy, but instead into tradable assets. In other words, Ben Bernanke has been the market."

What does it mean?

It means the revered professor Bernanke figured out a way to circumvent Congress and dump more than a trillion dollars into the stock market by laundering the money through the big banks and other failing financial institutions. As Kessler suggests, Bernanke knew the liquidity would pop up in the equities market, thus, building the equity position of the banks so they wouldn't have to grovel to Congress for another TARP-like bailout. Bernanke's actions demonstrate his contempt for the democratic process. The Fed sees itself as a government-unto-itself.

Over at Zero Hedge, Tyler Durden did the math and figured that the recent 45 per cent surge in the S&P 500 had nothing to do with the fictional economic "recovery", but was just more of the Fed's hanky panky. Durden noticed that the money that's been sluicing into stocks hasn't (correspondingly) depleted the money markets. That's the clue that led him to the truth about Bernanke's 6 month stock rally.

Zero Hedge: "Most interesting is the correlation between Money Market totals and the listed stock value since the March lows: a $2.7 trillion move in equities was accompanied by a less than $400 billion reduction in Money Market accounts!

Where, may we ask, did the balance of $2.3 trillion in purchasing power come from? Why the Federal Reserve of course, which directly and indirectly subsidized U.S. banks (and foreign ones through liquidity swaps) for roughly that amount. Apparently these banks promptly went on a buying spree to raise the all important equity market, so that the U.S. consumer whose net equity was almost negative on March 31, could regain some semblance of confidence and would go ahead and max out his credit card. Alas, as one can see in the money multiplier and velocity of money metrics, U.S. consumers couldn't care less about leveraging themselves any more."

So, the magical "Green Shoots" stock market rally was fueled by a mere $400 billion from the money markets. The rest ($2.3 trillion) was main-lined into the market via  Bernanke's quantitative easing (QE) program, of which Krugman and others speak so highly.

Wouldn't you like to know if Bernanke sat down with G-Sax and JPM executives and mapped out the details of this swindle before the printing presses ever started rolling?

So, how long can this kind of fakery go on before our creditors grow weary of dealing with chiselers and stop buying US Treasuries altogether? Here's a piece from Friday's Wall Street Journal on that very topic:

"Shaky auctions of Treasury notes this week reignited concerns about whether the government can attract buyers from China and elsewhere to soak up trillions in new debt.

“A fuse was lit this week when traders noted China's apparent absence from direct participation in two Treasury bond auctions. While China may have bought Treasurys just before the auctions, market participants read the country's actions as a worrying sign that China and other foreign investors may be ratcheting back purchases at a time when the U.S. is seeking to fund a $1.8 trillion budget deficit.

“This week alone, the U.S. deluged the bond market with more than $200 billion in record-size sales. The U.S. has had little trouble finding buyers in recent months. But that demand is fading, and the Treasury market has become volatile."

Uncle Sam is goosing the bond market just like he is the stock market. Take a look at Treasury's latest bit of chicanery which was stuffed in the back pages of the Wall Street Journal back in June:

"The sudden increase in demand by foreign buyers for Treasurys, hailed as proof that the world's central banks are still willing to help absorb the avalanche of supply, mightn't be all that it seems.

“When the government sells bonds, traders typically look at a group of buyers called indirect bidders, which includes foreign central banks, to divine overseas demand for U.S. debt. That demand has been rising recently, giving comfort to investors that foreign buyers will continue to finance the U.S.'s budget deficit.

“But in a little-noticed switch on June 1, the Treasury changed the way it accounts for indirect bids, putting more buyers under that umbrella and boosting the portion of recent Treasury sales that the market perceived were being bought by foreigners." ("Is foreign Demand as Solid as it Looks, Min zeng)

Nice touch, eh? So, someone doesn't want you and me to know when foreign demand drops off a cliff, so they just bend-and-twist the definitions so they meet the Fed's requirements.  How's that for transparency?. Apparently, Bernanke et al. don't believe the Chinese have translators who can make sense of all this subterfuge. That may be a miscalculation, however, given recent rumblings from the Orient.

But, perhaps, Bernanke knows that foreign demand for Treasuries will dry up and has made other plans to stabilize the dollar already. Maybe he worked out an agreement with the banks that if he pumped up the stock market--which he has--and built up the banks equity position--which he has---the banks would return the favor by buying up the lion's-share of Treasuries.   

This is from Bloomberg (August 3):

"U.S. lenders bailed out by the government are returning the favor by stepping up purchases of Treasuries, helping to temper a rise in borrowing costs.

“Bank holdings of U.S. government securities are up 15.6 per cent from a year ago, almost double the average annual growth rate of about 8 per cent since the Federal Reserve began tracking the data in 1973, according to the Greenwich, Connecticut-based trading and research firm MKM Partners LP. Purchases may accelerate as lenders look for places to park rising deposits as sales of federal agency debt of companies such as Fannie Mae and corporate bonds slow." (Bloomberg)

One hand washes the other. Funny how that works.

So, the bottom line is that the dollar is increasingly balanced on the rotting scaffolding of Bernanke's buyback programs (Quantitative Easing) and the circular purchases from collaborating banks that are concealing their backroom dealings with the Fed.

To keep this game going, Bernanke will have to keep juicing the market while the banks use the $850 billion in reserves (which the Fed has provided in the last year) to keep purchasing US sovereign debt.

Is anyone in Congress watching or is this shell game going to go on forever?

Mike Whitney lives in Washington state. He can be reached at fergiewhitney@msn.net

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