Category: News

There was already a long line of eager voters for the 2013 federal election at West End State School today.

While the voters were queueing pamphlets were handed out by the different parties, providing suggestions how they should cast their vote if their party appealed to them.

All the political parties present were eager to sway voters their way, while being respectful when voters politely declined to receive their information.

By Ellen Hodgson Brown

 “The powers of financial capitalism had another far reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole.”

— Prof. Caroll Quigley, Georgetown University, Tragedy and Hope (1966)

Iraq and Libya have been taken out, and Iran has been heavily boycotted. Syria is now in the cross-hairs. Why? Here is one overlooked scenario.

In an August 2013 article titled “Larry Summers and the Secret ‘End-game’ Memo,” Greg Palast posted evidence of a secret late-1990s plan devised by Wall Street and U.S. Treasury officials to open banking to the lucrative derivatives business. To pull this off required the relaxation of banking regulations not just in the US but globally. The vehicle to be used was the Financial Services Agreement of the World Trade Organization.

The “end-game” would require not just coercing support among WTO members but taking down those countries refusing to join. Some key countries remained holdouts from the WTO, including Iraq, Libya, Iran and Syria. In these Islamic countries, banks are largely state-owned; and “usury” – charging rent for the “use” of money – is viewed as a sin, if not a crime. That puts them at odds with the Western model of rent extraction by private middlemen. Publicly-owned banks are also a threat to the mushrooming derivatives business, since governments with their own banks don’t need interest rate swaps, credit default swaps, or investment-grade ratings by private rating agencies in order to finance their operations.

Bank deregulation proceeded according to plan, and the government-sanctioned and -nurtured derivatives business mushroomed into a $700-plus trillion pyramid scheme. Highly leveraged, completely unregulated, and dangerously unsustainable, it collapsed in 2008 when investment bank Lehman Brothers went bankrupt, taking a large segment of the global economy with it. The countries that managed to escape were those sustained by public banking models outside the international banking net.

These countries were not all Islamic. Forty percent of banks globally are publicly-owned. They are largely in the BRIC countries—Brazil, Russia, India and China—which house forty percent of the global population. They also escaped the 2008 credit crisis, but they at least made a show of conforming to Western banking rules. This was not true of the “rogue” Islamic nations, where usury was forbidden by Islamic teaching. To make the world safe for usury, these rogue states had to be silenced by other means. Having failed to succumb to economic coercion, they wound up in the crosshairs of the powerful US military.

Here is some data in support of that thesis.

The End-game Memo

In his August 22nd article, Greg Palast posted a screenshot of a 1997 memo from Timothy Geithner, then Assistant Secretary of International Affairs under Robert Rubin, to Larry Summers, then Deputy Secretary of the Treasury. Geithner referred in the memo to the “end-game of WTO financial services negotiations” and urged Summers to touch base with the CEOs of Goldman Sachs, Merrill Lynch, Bank of America, Citibank, and Chase Manhattan Bank, for whom private phone numbers were provided.

The game then in play was the deregulation of banks so that they could gamble in the lucrative new field of derivatives. To pull this off required, first, the repeal of Glass-Steagall, the 1933 Act that imposed a firewall between investment banking and depository banking in order to protect depositors’ funds from bank gambling. But the plan required more than just deregulating US banks. Banking controls had to be eliminated globally so that money would not flee to nations with safer banking laws. The “endgame” was to achieve this global deregulation through an obscure addendum to the international trade agreements policed by the World Trade Organization, called the Financial Services Agreement. Palast wrote:

Until the bankers began their play, the WTO agreements dealt simply with trade in goods–that is, my cars for your bananas.  The new rules ginned-up by Summers and the banks would force all nations to accept trade in “bads” – toxic assets like financial derivatives.

Until the bankers’ re-draft of the FSA, each nation controlled and chartered the banks within their own borders.  The new rules of the game would force every nation to open their markets to Citibank, JP Morgan and their derivatives “products.”

And all 156 nations in the WTO would have to smash down their own Glass-Steagall divisions between commercial savings banks and the investment banks that gamble with derivatives.

The job of turning the FSA into the bankers’ battering ram was given to Geithner, who was named Ambassador to the World Trade Organization.

WTO members were induced to sign the agreement by threatening their access to global markets if they refused; and they all did sign, except Brazil. Brazil was then threatened with an embargo; but its resistance paid off, since it alone among Western nations survived and thrived during the 2007-2009 crisis. As for the others:

The new FSA pulled the lid off the Pandora’s box of worldwide derivatives trade.  Among the notorious transactions legalized: Goldman Sachs (where Treasury Secretary Rubin had been Co-Chairman) worked a secret euro-derivatives swap with Greece which, ultimately, destroyed that nation.  Ecuador, its own banking sector de-regulated and demolished, exploded into riots.  Argentina had to sell off its oil companies (to the Spanish) and water systems (to Enron) while its teachers hunted for food in garbage cans.  Then, Bankers Gone Wild in the Eurozone dove head-first into derivatives pools without knowing how to swim–and the continent is now being sold off in tiny, cheap pieces to Germany.

The Holdouts

That was the fate of countries in the WTO, but Palast did not discuss those that were not in that organization at all, including Iraq, Syria, Lebanon, Libya, Somalia, Sudan, and Iran. These seven countries were named by U.S. General Wesley Clark (Ret.) in a 2007 “Democracy Now” interview as the new “rogue states” being targeted for take down after September 11, 2001. He said that about 10 days after 9-11, he was told by a general that the decision had been made to go to war with Iraq. Later, the same general said they planned to take out seven countries in five years: Iraq, Syria, Lebanon, Libya, Somalia, Sudan, and Iran.

What did these countries have in common? Besides being Islamic, they were not members either of the WTO or of the Bank for International Settlements (BIS). That left them outside the long regulatory arm of the central bankers’ central bank in Switzerland. Other countries later identified as “rogue states” that were also not members of the BIS included North Korea, Cuba, and Afghanistan.

The body regulating banks today is called the Financial Stability Board (FSB), and it is housed in the BIS in Switzerland. In 2009, the heads of the G20 nations agreed to be bound by rules imposed by the FSB, ostensibly to prevent another global banking crisis. Its regulations are not merely advisory but are binding, and they can make or break not just banks but whole nations. This was first demonstrated in 1989, when the Basel I Accord raised capital requirements a mere 2%, from 6% to 8%. The result was to force a drastic reduction in lending by major Japanese banks, which were then the world’s largest and most powerful creditors. They were undercapitalized, however, relative to other banks. The Japanese economy sank along with its banks and has yet to fully recover.

Among other game-changing regulations in play under the FSB are Basel III and the new bail-in rules. Basel III is slated to impose crippling capital requirements on public, cooperative and community banks, coercing their sale to large multinational banks.

The “bail-in” template was first tested in Cyprus and follows regulations imposed by the FSB in 2011. Too-big-to-fail banks are required to draft “living wills” setting forth how they will avoid insolvency in the absence of government bailouts. The FSB solution is to “bail in” creditors – including depositors – turning deposits into bank stock, effectively confiscating them.

The Public Bank Alternative

Countries laboring under the yoke of an extractive private banking system are being forced into “structural adjustment” and austerity by their unrepayable debt. But some countries have managed to escape. In the Middle East, these are the targeted “rogue nations.” Their state-owned banks can issue the credit of the state on behalf of the state, leveraging public funds for public use without paying a massive tribute to private middlemen. Generous state funding allows them to provide generously for their people.

Like Libya and Iraq before they were embroiled in war, Syria provides free education at all levels and free medical care. It also provides subsidized housing for everyone (although some of this has been compromised by adoption of an IMF structural adjustment program in 2006 and the presence of about 2 million Iraqi and Palestinian refugees). Iran too provides nearly free higher education and primary health care.

Like Libya and Iraq before takedown, Syria and Iran have state-owned central banks that issue the national currency and are under government control. Whether these countries will succeed in maintaining their financial sovereignty in the face of enormous economic, political and military pressure remains to be seen.

As for Larry Summers, after proceeding through the revolving door to head Citigroup, he became State Senator Barack Obama’s key campaign benefactor. He played a key role in the banking deregulation that brought on the current crisis, causing millions of US citizens to lose their jobs and their homes. Yet Summers is President Obama’s first choice to replace Ben Bernanke as Federal Reserve Chairman. Why? He has proven he can manipulate the system to make the world safe for Wall Street; and in an upside-down world in which bankers rule, that seems to be the name of the game.

Ellen Brown is an attorney, president of the Public Banking Institute, and author of twelve books including the best-selling Web of Debt. In The Public Bank Solution, her latest book, she explores successful public banking models historically and globally. Her websites are http://WebofDebt.com http://PublicBankSolution.com and http://PublicBankingInstitute.org

Coalition broken aid promise further disillusions youth vote.

Just twenty-four hours before polls open, thousands of young voters have met the Coalition’s broken promise on foreign aid with outcry.

The Coalition announced yesterday that $4.5 billion in foreign aid increases would be cut should they form government.

Viv Benjamin, CEO of the Oaktree Foundation, stated the slashed funds could have saved the lives of 450,000 people living in extreme poverty around the world. [1]

‘The impact of Abbott’s aid cuts, revealed at the eleventh hour, must be made known so voters can make an informed vote on Saturday’ Ms Benjamin said.

‘This issue goes beyond party politics; extreme poverty is a matter of life and death.’

In 2010, the Coalition pledged to give just 0.5% GNI to fight global poverty by 2015. Yesterday’s move sees the Coalition breaking their promise to the world’s poorest.

Youth Representative to the United Nations, Adam Pulford, says that Australia’s foreign aid commitments are one of the most important issues to young people.

‘The vast majority of young Australians I have heard from this year have said they believe Australia should do more to end global poverty’ Mr Pulford said.

‘It is an issue that many have said will affect their vote this Saturday.’

Research shows that this election, like the past four Federal elections, is likely to be decided by the youth vote. [2] Young people aged 18-24 make up 12% of the total electorate. With 1.6 million young Australians enrolled to vote this Saturday, they are a powerful force in Australian politics.

Over 74% of young people want Australia to increase aid to fight global poverty. [3]

Ms Benjamin calls on all politicians and candidates to maintain Australia’s commitment to the world’s poorest people.

‘Australian aid saves lives. After 21 years of uninterrupted economic growth, both major parties can and must keep their long-standing promise to increase aid to fight global poverty’ Ms Benjamin said.

The Oaktree Foundation is Australia’s largest youth-led anti-poverty organisation with over 150,000 members. For further information on Oaktree visit www.theoaktree.org

1] According to Micah Challenge, 5 September 2013
2] www.whitlam.org/__data/assets/pdf_file/0005/82994/youngpeople_imaginingdemocracy_literature_review.pdf
3] www.unicef.org.au/Media/Media-Releases/May-2012/Young-Australians-say-a-resounding-%E2%80%98YES%E2%80%99-to-more-a.aspx

Kirsty Patten, sister of Sex Party founder Fiona Patten,  is running for the Sex Party in the Queesland Senate. She has been a member of the Australian Sex Party since its inception (member number 14) and has always supported the common sense policies the party promotes. She is a gay woman with a partner and child who would like to have the same rights as all others in this country.

A teacher for 20 years in schools ranging from catholic primary and high schools to remote indigenous schools in the NT and Torres Strait to low socio economic schools in Northern Tasmania and finishing as a Principal on Hayman Island.

She has also worked on Japanese long-liners as an observer, played soccer for four different states and is about to try her hand at small business.

She says many Australians would have experimented with an illicit drug sometime in their lives. This shouldn’t be a crime nor should the personal possession of small amounts of drugs. Portugal has had a very successful history with a policy of decriminalisation which we should emulate.

She also wants to see the right to die with dignity as a basic human right. Over 82% of Australians agree that voluntary euthanasia should be legalised.

Caption: Kirsty and Fiona Patten enjoy a quiet ale together.

Have a look at the ASP’s outrageous TV ad here: http://www.youtube.com/watch?v=hxZ0yDTfnjw

 

 

 

 

 

 

 

Any one expecting a lightweight version of the leaders debate when Graeme Perrett and  Malcolm Cole lined up at the South West Chamber breakfast last week got more than they bargained for.

The most marginal seat in the country is being hard fought by two serious contenders, both vigorous terriers who will take the fight all the way down to the line. Both are long time members of the community and well known to the Chamber generally.

Perrett has the natural advantage of the incumbent, he is across the detail of a lot of the legislation and has direct experience solving the problems of many people in the community. That is not such a great advantage though when the government you represent is on the nose and most people are keen to see a change.

Malcolm Cole has matured throughout this campaign. Even though he has stood for the seat in 2010 his initial forays into public were somewhat intense and a little shaky against the more experienced opponent.

He has settled into the role. He is calmer now and more steady and whacks back the insults with a straight bat and a wry smile.

4BC small business and real estate guru, Kevin Turner, chaired the debate and set the ground rules firmly before passing the baton to Graeme Perrett as the incumbent.

Graeme emphasized his credentials in the community, and role that the Labor Government has played in staving off the worst impacts of the Global Financial Crisis. He painted a picture of a competent and careful government that has struggled against difficult external forces, and a hostile media.

Malcolm very politely suggested to the audience that they look at the picture a completely different way, the government has been in shambles, minority parties and independents have taken them in directions they would prefer not to have gone and there have been many failed programs. Let us make it all better for you.

Both gentlemen quoted a number of statistics which I dutifully noted but will not bore you with right now. If you want them please feel free to contact me.

The real fun and games started with Question Time, however.

A question about car manufacturing and the fringe benefits tax elicited the predictable responses:
ALP – the car industry is incredibly important and we support it, the tax is simply tidying up the paperwork
LNP – you do not support an industry by ripping the guts out of it in tough times.

Chamber regular and contrarian David Stark challenged Perret to defend the work of 99% of climate scientists and prove that global warming is caused by humans. When Perret deferred to the CSIRO on the grounds that they are the experts, Stark interjected and was roundly ticked off by other chamber members who had come to hear about government policy not conspiracy theories.

Archerfield Airport Corporation’s Corrie Metz raised the issue of veteran pensions and revealed one area where Malcolm Cole had a better grasp of the detail than Graeme Perret. The LNP has offered to index the Accumulated Benefits Scheme to the better of the CPI or the average male wage.

On the cost of inputs for small business, Malcolm had the room behind him with cutting the carbon tax, allowing the dollar to fall by borrowing less and reducing on-costs. Graeme valiantly pointed to all the good things the ALP has done but the internal tensions of the ALP and the challenges of running a minority government curtailed the conviction that a government should bring to such a debate.

The question of intergenerational wealth and bracket creep in taxation came as the room was clearly calling for the bell. Both terriers savaged the bait with the most vigour they could muster and the adrenaline of the room rose two notches.

Perret claimed credit for the economic miracles of floating the dollar and the Accord under Hawke and Keating and pointed to the significant tax rises under Howard. The ALP saved the country from the GFC and we now enjoy the best economy in the world.

That gave Cole just the head of steam he needed to quip that it is amusing to hear constantly that the ALP loses money because they get into government just as the external world goes bad just as they reach office. First he cited 9/11 the Asian economic doldrums and a couple of wars as being externalities managed by Howard and then he delivered the line of the morning as far as this scribbler is concerned.

“Let’s say I’m wrong. Let’s say that it is just luck and every time we get into power the economy improves by coincidence. Well I ask you, wouldn’t you back the team that has all the good luck?”

After that it was really time for everyone to pack up gracefully, wipe the scrambled eggs and bacon juice off their faces and get to work.

Another ripper of a morning at the Chamber and a great opportunity to see these two candidates as they near the end of a long and toughly fought campaign. Full marks to both of them and to the chamber  for putting it on.

Help bridge the gender gap and empower women and girls today.

The Australian National Committee for UN Women is calling on Australian men to donate $266 to mark Equal Pay Day today.

Women make up 70% of the world’s poor. The reasons for this are complex, but it starts with an undervaluing of women’s contributions. One of the most ‘tell-tale’ examples of this undervaluing is the persistent pay gap between men and women’s wages. According to the Workplace Gender Equality Agency, in May 2013, the gender pay gap in Australia stood at 17.5 per cent.

The average weekly ordinary time earnings of women working full-time were $1,252.20 per week, compared to men who earned an average weekly wage of $1,518.40 per week, making women’s average earnings $266.20 per week less than men.

The reasons for the gap include: women working in different industries to men, women being over represented in low paying occupations, the undervaluing of women’s skills and women taking career breaks more often than men.

The gap varied by sector with the health care and social assistance sector demonstrating the highest gender pay gap (32.3%), followed by the financial and insurances services sector (31.4%) and the professional, scientific and technical services sector (30.1%).

Donating the equivalent of 17% of your salary for a day, week or even a month will demonstrate that you acknowledge that women deserve equality and that you are committed to closing the gender pay gap.

The Australian National Committee for UN Women is calling attention to the pay gap between men and women in Australia as part of a broader campaign on the impacts of economic inequality on women and girls in the lead up to the International Day of a Girl Child on October 11, 2013.

The United Nations has declared October 11 as the International Day of the Girl Child, to recognise girls’ rights and the unique challenges girls face around the world.

“We’ve launched our campaign on Equal Pay Day because it serves to highlight the systemic inequality girls face from birth,” Executive Director of the Australian National Committee, Julie McKay said.

“Every day, girls across the world, including in Australia, experience gender discrimination and this continues into their adult lives. A gender pay gap reflects not only a lack of access to economic security, but broader issues around women’s role in society.

“Many girls never have the opportunity to participate in the workforce and those that do often experience inequality in pay, conditions and opportunities because of their gender.

“We are encouraging everyone, particularly men, to commit to donating 17 per cent of their earnings for the day, week or month before October 11 and help us reach our $20,000 target before October 11.”

To make a contribution visit www.unwomen.org.au and donate today. Follow the conversation on Twitter @unwomenaust using #equalpayday and #dayofgirlchild.

Where will your money go?

$1040 can support girls who have been rescued from sex trafficking, giving them shelter, counselling, education and hope for the future.
$520 can fund a community-wide education program to end the practice of female genital mutilation cutting.
$125 can support school teachers to educate students about forced marriage and early pregnancies.
$99 can provide a pregnant girl with medical care to ensure that she and her child are healthy and safe.

Background Notes:

· Over 60 million girls worldwide are forced into marriage before the age of 18
· 125 million girls and women worldwide have undergone female genital mutilation/cutting (FGM/C)
· 1.2 million children are being trafficked each year – many of these children are girls forced into sex trafficking
· Pregnancy is the leading cause of death worldwide for women aged 15 to 19
· Literacy rates for girls in many countries remain low – just 12% of Afghan women aged 15 and over are literate