Assange update

http://www.executedtoday.com/2014/09/06/1771-matthias-klostermayr-the-bavarian-hiasl/

Following our London visit and walkpast of the Ecuadorian Embassy last month, where perhaps the most famous victim of the abuse-inviting European Arrest Warrant is besieged by the British Government, and where the (sole) Met police guard slipped furtively round the corner when we spotted him, it has been decided:

(a) to remove the guard, after spending 10+ millions of pounds allegedly securing this fugitive from dodgy justice - and I'd really like to see the accounts for that thoroughly audited;

(b) to deny Assange his right to medical assessment - with potentially lethal consequences.

How does this look to fair-minded people? Perhaps HMG is unselfconscious - or is it simply thundering arrogance?

O wad some Power the giftie gie us
To see oursels as ithers see us!
It wad frae mony a blunder free us,
An' foolish notion.

 

- Robert Burns (1786)

 

"History has taught me, that RULERS are much the same in all ages & under all forms of government: they are as bad as they dare to be."

- Samuel Taylor Coleridge, in a letter to his brother George (c. 10 March 1798)

It's odd, but in various ways - e.g. reflections on national constitutions and the abuse of State power -both sides of the Atlantic seem to be revisiting the late eighteenth century.


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Illegal NSA surveillance, Ronald Reagan and after

"The Smoking man"
Source: Wikipedia

Ronnie endorsing smoking
(Source)

Do dee do do, do dee do do... It would be funny - or a good X-files plotline - if it weren't true. James Bamford has been investigating - and fighting, bravely, more than I think I could do - the NSA since the 70s.

He didn't come to this as a journalist at first, but as a security-cleared part-time operative for the Naval Reserve who became a whistleblower when he found things that played on his sense of right and wrong. Especially when the NSA lied to the Church Committee in 1975 about having wound up its illegal surveillance:

"Soon after, committee staffers flew down to Sabana Seca for a surprise inspection. Surprise, indeed. They were shocked to discover the program had never been shut down, despite the NSA’s claims."

Post-Watergate, it was thinkable to consider prosecuting a Government agency - but then there was a change of Attorney General when Ronald Reagan became President:

"If the first shock to top officials at the NSA was the discovery that they were being investigated as potential criminals, the second shock was that I had a copy of the top secret file on the investigation. When the NSA discovered that the file was in my possession, director Bobby Inman wrote to the attorney general informing him that the documents contained classified information and should never have been handed over to me. But Civiletti, apparently believing that the file had been properly reviewed and declassified, ignored Inman’s protest.

"Then, on January 20, 1981, Ronald Reagan was sworn into office. At the Justice Department, Civiletti was replaced by a new attorney general with a much more accommodating attitude when it came to the NSA: William French Smith..."

The NSA wanted to retrieve embarrassing evidence from Bamford, and the President was gung-ho to help them:

"Despite the threats, I refused to alter my manuscript or return the documents. Instead, we argued that according to Executive Order 12065, “classification may not be restored to documents already declassified and released to the public” under the Freedom of Information Act. That prompted the drama to move all the way up to the White House. On April 2, 1982, President Reagan signed a new executive order on secrecy that overturned the earlier one and granted him the authority to “reclassify information previously declassified and disclosed.” "

Since then, of course, and since the Internet and supercomputers, the - some say unconstitutional and illegal - spying has become much worse:

"The agency’s metadata collection program now targets everyone in the country old enough to hold a phone. The gargantuan data storage facility it has built in Utah may eventually hold zettabytes (1,000,000,000,000,000,000,000 bytes) of information. And the massive supercomputer that the NSA is secretly building in Oak Ridge, Tennessee, will search through it all at exaflop (1,000,000,000,000,000,000 operations per second) speeds."

For the whole of Bamford's account on NewsTrust, please see: http://newstrust.net/stories/9841512/toolbar

We need to do this to get at our, er, your enemies, says the apologists, here in the UK as in the USA. But remember the words of Sir Thomas More in Robert Bolt's play, "A Man For All Seasons":

"What would you do? Cut a great road through the law to get after the Devil? ... And when the last law was down, and the Devil turned round on you – where would you hide, [...] the laws all being flat? This country is planted thick with laws from coast to coast, Man's laws, not God's, and if you cut them down [...] do you really think you could stand upright in the winds that would blow then? Yes, I give the Devil benefit of law, for my own safety's sake!"


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Is our EU membership ultra vires?

Dr Richard AE North is a distinguished blogger and writer, but I do not entirely share his distaste for UKIP, of which he was once (like Professor Alan Sked) a key mover and shaker.

It seems that like many others, Dr North finds constitutional objections to EU membership as irritating as a gadfly. Here's a recent exchange:

[from the main body of his post] To this sad, dysfunctional crew, the EU treaties are "illegal" and those who signed it are "traitors". Any idea of negotiation or agreement is an anathema. They would sooner see the British economy crash and burn than accept a deal with Brussels.

[Me] Bit tendentious. I do indeed argue that UK entry into the EU in 1973 was ultra vires. Why that should make me sad and dysfunctional I'm not quite sure...

[Dr North] This is exactly what I mean .... apart from the fact that we didn't enter the EU in 1973 (or the EEC for that matter), the entry was in accord with our constitutional arrangements. Why does it matter so much that you need to assert that it is "ultra vires"? It isn't...

[Me] But we did enter the EU and didn't know it. We were told it was simply a trading arrangement and didn't know about the commitment to "ever-closer union". But Macmillan, Heath and others did know, because they got legal advice that told them of the constitutional implications. And we do have a constitution, one that very specifically forbids ceding any sovereign power to anyone outside the country. So yes, it was and is ultra vires. The referendum didn't validate the change because again the prospectus was false. If this seems like a boring legal point then let us have done with law - which is a trend I see here and elsewhere.

Constitutional argument is currently raging - among those who read, rather than play computer games - in the USA also ("Washington's Blog" is a good place to start). For example, under the US Constitution - at least as it used to be - Congress declares war, not the President.

It is a bit odd that a passionate democrat like Dr North, who espouses the direct-democracy "Harrogate Agenda", should dislike those who point out that here as in the US, constitutions - the foundations of legislation and power, the source of their legitimacy - have been snipped through like the string on a child's balloon.

For all its many faults - and no human institution is free of fault, as doubtless Dr North will discover if ever the Harrogate Agenda should come to be implemented - UKIP is gaining support because people are becoming aware how radically disenfranchised we have become, and how money and power are clearing away the last obstacles to their unrestricted global rule.


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Alabamageddon

"People want to kill somebody, but they don't know who to shoot at" ...

Back to the Constitution - and its underlying principles

A fine rhetorical performance by Bob Basso (htp: Karl Denninger), reminding Americans that the issue isn't money, but liberty and national integrity (as in holding the pieces together).

I agree with everything before the tea-bag (never as good as leaves, old chap) and the call to buy guns; some might go further.

The importance of correctly predicting liquidity movements

A hedge fund manager (Andrew Lahde) says farewell to the industry (extracts):

Recently, on the front page of Section C of the Wall Street Journal, a hedge fund manager who was also closing up shop (a $300 million fund), was quoted as saying, “What I have learned about the hedge fund business is that I hate it.” I could not agree more with that statement. I was in this game for the money. The low hanging fruit, i.e. idiots whose parents paid for prep school, Yale, and then the Harvard MBA, was there for the taking. These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government. All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other side of my trades. God bless America.

I will no longer manage money for other people or institutions. I have enough of my own wealth to manage. Some people, who think they have arrived at a reasonable estimate of my net worth, might be surprised that I would call it quits with such a small war chest. That is fine; I am content with my rewards. Moreover, I will let others try to amass nine, ten or eleven figure net worths. Meanwhile, their lives suck. Appointments back to back, booked solid for the next three months, they look forward to their two week vacation in January during which they will likely be glued to their Blackberries or other such devices. What is the point? ... Throw the Blackberry away and enjoy life.

...I truly do not have a strong opinion about any market right now, other than to say that things will continue to get worse for some time, probably years. I am content sitting on the sidelines and waiting. After all, sitting and waiting is how we made money from the subprime debacle. I now have time to repair my health, which was destroyed by the stress I layered onto myself over the past two years, as well as my entire life – where I had to compete for spaces in universities and graduate schools, jobs and assets under management – with those who had all the advantages (rich parents) that I did not. May meritocracy be part of a new form of government, which needs to be established.

On the issue of the U.S. Government, I would like to make a modest proposal. First, I point out the obvious flaws, whereby legislation was repeatedly brought forth to Congress over the past eight years, which would have reigned in the predatory lending practices of now mostly defunctinstitutions. These institutions regularly filled the coffers of both parties in return for voting down all of this legislation designed to protect the common citizen. This is an outrage, yet no one seems to know or care about it. Since Thomas Jefferson and Adam Smith passed, I would argue that there has been a dearth of worthy philosophers in this country, at least ones focused on improving government. Capitalism worked for two hundred years, but times change, and systems become corrupt. George Soros, a man of staggering wealth, has stated that he would like to be remembered as a philosopher. My suggestion is that this great man start and sponsor a forum for great minds to come together to create a new system of government that truly represents the common man’s interest, while at the same time creating rewards great enough to attract the best and brightest minds to serve in government roles without having to rely on corruption to further their interests or lifestyles. This forum could be similar to the one used to create the operating system, Linux, which competes with Microsoft’s near monopoly. I believe there is an answer, but for now the system is clearly broken...

(htp: Michael Panzner)

Refuge, flight, battle rejoined, victory, retribution

Brad Setser looks at a flood of demand for US Treasuries and suspects that it's central banks shifting into the securest dollar asset they can find; and away from other dollar-denominated assets.

The first comment on the same post says that the next stage is a run on the dollar.

Continuing the Tolkien fantasy theme, one recalls the flight to Helm's Deep, and the eventual breach. Ultimately, though at a cost, the good side wins, of course (Denninger explains today how we can face the mess and clean it up).

Time to revisit Michael Panzner's "Financial Armageddon" - reviewed here in May of last year.

If he's right - and he's been right so far - it's first cash, then out of cash. But there's not enough gold to act as the world's currency (unless a horrific amount of wealth is permanently destroyed), and if we start up a new fiat currency, the moral criminals of the banking class will play the game all over again.

I note that Max Hastings in the Daily Mail calls for bankers to be "named and shamed"; this is milksop stuff. Yet they're still going to get billions in bonuses this year! Why does the Proceeds of Crime Bill not apply? Heavy, heavy fines, so that generations of bankers and traders will remember and hesitate. How about the last 5 years' bonuses, as a benchmark? Punitur quia peccatum est ("punishment is to be inflicted, because a crime has been committed").

But even that's not enough. What about the political class that opened the financial sluices to alleviate the discomfort of 2002-2003? And did it several times before, too? (See Jesse today on Greenspan's bubbles.) How do we mete out condign punishment to those greedy for power, as well as those for money?

I repeat, this is a crisis of democracy.

A crisis of democracy, not of capitalism

One of the features of the present crisis is that it is not so much financial as political. Vast bailouts of greedy and destructive banks lead Americans to ask, who is running the country, and for whose benefit? Mish and others are turning from financial commentators to pro-democracy activists.

Shall "Government of the people, by the people and for the people" perish from the earth? The lazy, defeatist cynics of the UK fail to understand how Lincoln's words still burn brightly in many Americans' hearts. It's why they are so quick to attack their politicians as liars and shysters, wheras we merely expect them to be that anyway. Their idealism shames us.

Is the USA still ruled by law?

The London Banker gives the US a magisterial damning, citing many instances of the Executive acting in ways he considers ultra vires in the financial arena.

This sort of talk from someone who generally appears to be a sobersides, echoing the volatile but technically savvy Karl Denninger, really does alter the tone of the debate. Read it yourself, and judge.

UPDATE

Jesse, too:

... Men sneer that outmoded laws and useless principles must fall to vital expediency so that we might be saved. The will to power begins to erode and overthrow justice and the rule of law.

And at certain times in history, in their fears and insensible numbness, people concede first the discretionary choices, then their moral outrage, then the weak, then their wealth, their freedom, and finally comes madness, and then the deluge.

And Tyler:

I'm afraid to say, we're facing much more regulation.

And much more government.

And much less willingness to trust markets.

We're in the Slough.

This is a sad, keening chorus of responsible bloggers.

Accountability - but not to the citizens

Reuters reports yesterday that a bank in Abu Dhabi is suing Morgan Stanley, Bank of New York, Mellon and the ratings agencies for fraud relating to understating the risks in the complex debt packages at the heart of the credit crisis. (htp: Jesse)

Answerability to the voters is so last millennium, pace idealistic dreamers like Karl Denninger; but money talks.

If voting made a difference, it'd be Paris Hilton for Prez, and do you know, she could be a surprisingly good choice. Much more can be achieved laying on a sun lounger than crashing around the world. A film quote from Lawrence of Arabia:

Colonel Brighton: Look, sir, we can't just do nothing.

General Allenby: Why not? It's usually best.

And what a pleasant change it would be, to have a politician who only pretends to be dumb. I can just imagine her sweetly commanding some tough dudes to go and give the financiers the drubbing they deserve, then turning her attention back to her fashion magazine.

Yes, it's money that talks and the people are dumb. In 1930 Ludwell Denny wrote, "Too wise to try to govern the world, we shall merely own it. Nothing can stop us." America forgot that lesson; rising foreign powers now pay the piper, and will call the tune.

If you can't beat 'em... every dollar and pound you save in your bank account, is a vote in this new electoral system. With luck, one of your descendants will be accepted into the Superclass, while the rest vainly try voting for improved social security and healthcare; when the well is dry, the vote won't fill it. The freedom for which America thinks it stands, isn't founded on supplication. As here in Britain, it would be a hard road back.

Perhaps Chesterton's observation on Christianity may apply equally to the US Constitution: "[it] has not been tried and found wanting; it has been found difficult and not tried."

In praise of the American Constitution

On The Great Depression Of 2006 recently the talk has turned, inevitably, to rich vs. poor. When societies are under stress, the people turn on each other. I think they are forgetting what holds them together.

I hold no brief for American foreign policy (perhaps nations and religions should be evaluated according to how they treat "the others"), but I wish we in the UK had something that guaranteed our international independence and defined and limited the powers of our government. My comment on Jim's piece is as follows:

Would we have to be talking like this if the banks hadn't exploded the money supply?

After much heart-searching (and encouragement from me), my brother recently became an American citizen. He sent me the crib book ("The Citizen's Almanac"). Page 5 ("Responsibilities Of A Citizen"), item one: "Support and defend the Constitution against all enemies, foreign and domestic." The explanatory paragraph ends, "When the Constitution and its ideals are challenged, citizens must defend these principles against all adversaries."

Please don't bridle if I quote the United States Constitution, Article 1, Section 10: "No State shall [...] emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts..."

It's not just about money, but allowing the bankers and politicians to corrupt the money system threatens liberty. We in the UK had a constitution based on civilised understandings that have been thrown out by mad revolutionaries, but you have a clearly expressed founding document more precious than any wretched paper dollars you may have. Lincoln said that the American nation was conceived in liberty and dedicated to equality; "... Now we are engaged in a great civil war, testing whether that nation, or any nation, so conceived and so dedicated, can long endure."

Then as now, you may be the last major nation to hold up that flame. It is not gold and silver that made America admirable, but the principles that bind her citizens. Perhaps excessive material wealth has proved a distraction and a subversion.

After the crash, there will still be Americans, and the American nation. May I humbly suggest that Denninger is right, and the miscreants who have threatened the community with their greed and irresponsibility, should be held to account?