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Parry writes: "Today, Official Washington is marching in lockstep just as it did in 2002-03 when it enforced the misguided consensus on Iraq's WMD."

A gay rights activist shows a photo of Russia's President Vladimir Putin depicted as a devil, as protesters gather at a square in Brussels. (photo: Yves Logghe/AP)
A gay rights activist shows a photo of Russia's President Vladimir Putin depicted as a devil, as protesters gather at a square in Brussels. (photo: Yves Logghe/AP)


The Danger of False Narrative

By Robert Parry, Consortium News

28 March 14

he American people got a nasty taste of the danger that can come with false narrative when they were suckered into the Iraq War based on bogus claims that Saddam Hussein was hiding weapons of mass destruction that he planned to share with al-Qaeda.

Nearly 4,500 U.S. soldiers died in the conflict along with hundreds thousands of Iraqis. The war�s total financial cost probably exceeded $1 trillion, a vast sum that siphoned off America�s economic vitality and forced cutbacks in everything from education to road repair. Plus, the war ended up creating an Iraqi base for al-Qaeda terrorists that had not existed before.

But perhaps an even more dangerous problem coming out of the Iraq War was that almost no one in Official Washington who pushed the false narrative � whether in politics or in the press � was held accountable in any meaningful way. Many of the same pols and pundits remain in place today, pushing similar false narratives on new crises, from Ukraine to Syria to Iran.

Those false narratives � and their cumulative effect on policymaking � now represent a clear and present danger to the Republic and, indeed, to the world. The United States, after all, is the preeminent superpower with unprecedented means for delivering death and destruction. But almost nothing is being done to address this enduring American crisis of deception.

Today, Official Washington is marching in lockstep just as it did in 2002-03 when it enforced the misguided consensus on Iraq�s WMD. The latest case is Ukraine where Russian President Vladimir Putin is accused of committing �aggression� to expand Russian territory at the expense of noble �democratic� reformers in Kiev.

Not only is this the dominant storyline in the U.S. media; it is virtually the only narrative permitted in the mainstream press. But the real narrative is that the United States and the European Union provoked this crisis by trying to take Ukraine out of its traditional sphere of influence, Russia, and put it in to a new association with the EU.

While there�s nothing inherently wrong with Ukraine joining with the EU or staying with Russia (or a combination of the two) � depending on the will of the people and their elected representatives � this latest U.S./EU plan was motivated, at least in part, by hostility toward Russia.

That attitude was expressed in a Sept. 26, 2013, op-ed in the Washington Post by Carl Gershman, the neoconservative president of the National Endowment for Democracy, which doles out more than $100 million in U.S. funds a year to help organize �activists,� support �journalists� and finance programs that can be used to destabilize targeted governments.

Gershman, whose job amounts to being a neocon paymaster, expressed antagonism toward Russia in the op-ed and identified Ukraine as �the biggest prize,� the capture of which could ultimately lead to the ouster of Putin, who �may find himself on the losing end not just in the near abroad but within Russia itself.�

The NED, which was founded in 1983 to do in relative openness what the CIA had long done in secret, listed 65 projects that it was financing in Ukraine, using U.S. taxpayers� money. In other words, Gershman�s op-ed reflected U.S. policy � at least inside the State Department�s still-neocon-dominated bureaucracy � which viewed the EU�s snatching of Ukraine from Russia�s embrace as a way to weaken Russia and hurt Putin.

�European Aspirations�

Later, as the Ukrainian crisis unfolded, another neocon, Assistant Secretary of State for European Affairs Victoria Nuland, reminded Ukrainian businessmen that the United States had invested $5 billion in their �European aspirations,� implying that the U.S. expected something for all this money.

You might wonder why the American taxpayers should spend $5 billion on the �European aspirations� of Ukraine when there are so many needs at home, but a more relevant question may be: Why is the United States spending that much money to stir up trouble on Russia�s border? The Cold War is over but the hostility continues.

Former Defense Secretary Robert Gates described this thinking in his memoir, Duty, explaining the view of President George H.W. Bush�s Defense Secretary Dick Cheney: �When the Soviet Union was collapsing in late 1991, Dick wanted to see the dismantlement not only of the Soviet Union and the Russian empire but of Russia itself, so it could never again be a threat to the rest of the world.�

As Vice President, Cheney and the neocons around him pursued a similar strategy during George W. Bush�s presidency, expanding NATO aggressively to the east and backing anti-Russian regimes in the region including the hardline Georgian government, which provoked a military confrontation with Moscow in 2008.

Since President Barack Obama never took full control of his foreign policy apparatus � leaving the Bush Family apparatchik Gates at Defense and naming neocon-leaning Democrat Hillary Clinton as Secretary of State � the bureaucratic momentum toward confronting Russia continued. Indeed, the elevation of operatives like Nuland, the wife of prominent neocon Robert Kagan, gave new impetus to the anti-Russian strategy.

Secretary of State John Kerry, who got his �dream job� last year with the considerable help of his neocon chum Sen. John McCain, has acted as a kind of sock puppet for this neocon-dominated State Department bureaucracy.

Either because he is overly focused on his legacy-building initiative of an Israeli-Palestinian peace deal or because he has long since sold out his anti-war philosophy from the Vietnam War era, Kerry has repeatedly taken the side of the hawks: on Syria, Iran and now Ukraine.

On Syria and Iran, it was largely the behind-the-scenes cooperation between Obama and Putin that tamped down those crises last year and opened a pathway for diplomacy � much to the chagrin of the neocons who favored heightened confrontations, U.S. military strikes and �regime change.� Thus, it became a neocon priority to divide Obama from Putin. Ukraine became the wedge.

The Crisis

The Ukrainian crisis took a decisive turn on Nov. 21, 2013, when President Viktor Yanukovych rebuffed a deal offered by the EU and the International Monetary Fund because it would have imposed harsh austerity on the already suffering Ukrainian people. Yanukovych opted instead for a more generous aid package of $15 billion from Russia, with few strings attached.

But Yanukovych�s turning away from the EU infuriated the U.S. State Department as well as pro-European demonstrators who filled the Maidan square in Kiev. The protests reflected the more anti-Russian attitudes of western Ukraine, where Kiev is located, but not the more pro-Russian feelings of eastern and southern Ukraine, Yanukovych�s strongholds that accounted for his electoral victory in 2010.

Though the Maidan protests involved hundreds of thousands of Ukrainians simply eager for a better life and a less corrupt government, some of the most militant factions came from far-right parties, like Svoboda, and even neo-Nazi militias from the Right Sektor. When protesters seized City Hall, Nazi symbols and a Confederate battle flag were put on display.

As the protests grew angrier, U.S. officials, including Assistant Secretary Nuland and Sen. McCain, openly sided with the demonstrators despite banners honoring Stepan Bandera, a World War II-era fascist whose paramilitary forces collaborated with the Nazis in the extermination of Poles and Jews. Nuland passed out cookies and McCain stood shoulder to shoulder with right-wing Ukrainian nationalists. [For more on the role of Ukrainian neo-Nazis, watch this report from the BBC.]

On Feb. 20, the violence intensified as mysterious snipers fired on both protesters and police. As police fought back, neo-Nazi militias hurled Molotov cocktails. More than 80 people were killed including more than a dozen police officers, but the U.S. press blamed the Yanukovych government for the violence, portraying the demonstrators as innocent victims.

Official Washington�s narrative was set. Yanukovych, who had been something of a hero when he was moving toward the EU agreement in the early fall, became a villain after he decided that the IMF�s demands were too severe and especially after he accepted the deal from Putin. The Russian president was undergoing his own demonization in the U.S. news media, including an extraordinary denunciation by NBC at the end of the Sochi Winter Olympics.

In the U.S. media�s black-and-white scenario, the �pro-democracy� demonstrators in the Maidan were the good guys who were fired upon by the bad-guy police. The New York Times even stopped reporting that some of those killed were police, instead presenting the more pleasing but phony narrative that �more than 80 protesters were shot to death by the police as an uprising spiraled out of control in mid-February.�

To this day, the identity of the snipers who touched off the conflagration remains in serious doubt. I was told at the time that some U.S. intelligence analysts believed the shooters were associated with the far-right opposition groups, not with the Yanukovych government.

That analysis gained support when a phone call surfaced between Estonia�s Foreign Minister Urmas Paet and European Union foreign affairs chief Catherine Ashton, Paet reported on a conversation that he had with a doctor in Kiev who said the sniper fire that killed protesters was the same that killed police officers.

As reported by the UK Guardian, �During the conversation, Paet quoted a woman named Olga � who the Russian media identified her as Olga Bogomolets, a doctor � blaming snipers from the opposition shooting the protesters.�

Paet said, �What was quite disturbing, this same Olga told that, well, all the evidence shows that people who were killed by snipers from both sides, among policemen and people from the streets, that they were the same snipers killing people from both sides.

�So she also showed me some photos, she said that as medical doctor, she can say it is the same handwriting, the same type of bullets, and it�s really disturbing that now the new coalition, that they don�t want to investigate what exactly happened. � So there is a stronger and stronger understanding that behind snipers it was not Yanukovych, it was somebody from the new coalition.�

Ashton replied: �I think we do want to investigate. I didn�t pick that up, that�s interesting. Gosh.�

Though this exchange does not prove that the opposition used snipers to provoke the violence, it is relevant information that could have altered how Americans viewed the worsening crisis in Ukraine. However, except for an on-the-scene report from CNN with the same doctor, the Paet-Ashton phone call disappeared into the U.S. media�s black hole reserved for information that doesn�t fit with a preferred narrative.

Black Hats/White Hats

So, with giant black hats glued onto Yanukovych and Putin and white hats on the protesters, the inspiring but false U.S. narrative played out in heroic fashion, with only passing reference to the efforts by Yanukovych to make concessions and satisfy the protesters� demands.

On Feb. 21, Yanukovych tried to defuse the violence by signing an agreement with three European countries in which he accepted reduced powers, moved up elections so he could be voted out of office, and pulled back the police. That last step, however, opened the way for the neo-Nazi militias to seize government buildings and force Yanukovych to flee for his life.

Then, on Feb. 22, under the watchful eye of these modern-day storm troopers, a rump parliament � in violation of constitutional procedures � voted to impeach Yanukovych, who reemerged in Russia to denounce the actions as a coup.

Despite this highly irregular process, the U.S. government � following the lead of the State Department bureaucracy � immediately recognized the new leadership as Ukraine�s �legitimate� government. Putin later appealed to Obama in support of the Feb. 21 agreement but was told the ouster of Yanukovych and the installation of the U.S.-backed government were a fait accompli.

The rump parliament in Kiev also accused Yanukovych of mass murder in connection with the shootings in the Maidan � an accusation that got widespread play in the U.S. media � although curiously the new regime also decided not to pursue an investigation into the identity of the mysterious snipers, a point that drew no U.S. media interest.

And, a new law was passed in line with the desires of right-wing Ukrainian nationalists to eliminate Russian as one of the country�s official languages. New government leaders also were dispatched to the Russian-ethnic regions to take charge, moves that, in turn, prompted resistance from Russian-ethnic citizens in the east and south.

It was in this context � and with appeals from Yanukovych and ethnic Russians for help � that Putin got permission from the Duma to intervene militarily if necessary. Russian troops, already stationed in bases in Crimea, moved to block the Kiev regime from asserting its authority in that strategic Black Sea peninsula.

Amidst this political chaos, the Crimean parliament voted to break away from Ukraine and join Russia, putting the question to a popular vote on March 16. Not surprisingly, given the failed Ukrainian state, its inability to pay for basic services, and Crimea�s historic ties to Russia, Crimean voters approved the switch overwhelmingly. Exit polls showed about a 93 percent majority, just three points less than the official results.

Russia then moved to formally reclaim Crimea, which had been part of Russia dating back to the 1700s, while also massing troops along the borders of eastern Ukraine, presumably as a warning to the Kiev regime not to crush popular resistance to the anti-Yanukovych coup.

A Divergent Narrative

So, the factual narrative suggests that the Ukrainian crisis was stoked by elements of the U.S. government, both in the State Department and in Congress, encouraging and exploiting popular resentments in western Ukraine. The goal was to pull Ukraine out of Russia�s orbit and put it into the EU�s gravitational pull.

When Yanukovych balked at IMF�s demands, a process of �regime change� was put in motion with the U.S. and EU even turning their backs on the Feb. 21 agreement in which Yanukovych made a series of concessions negotiated by European countries. The deal was cast aside in a matter of hours with no attempt by the West to uphold its terms.

Meanwhile, Putin, who was tied up with the Sochi Olympics and obsessed over fears that it would be targeted by Islamist terrorists, appears to have been caught off-guard by the events in Ukraine. He then reacted to the alarming developments on Russia�s border, including the emergence of neo-Nazis as prominent figures in the coup regime in Kiev.

In other words, a logical � and indeed realistic � way to see the Ukraine-Crimea crisis is that Putin was largely responding to events that were outside his control. And that is important to understand, because that would mean that Putin was not the aggressor spoiling for a fight.

If there was premeditation, it was coming from the West and particularly from the neocons who remain highly influential in Official Washington. The neocons also had motive to go after Putin, since he helped Obama use diplomacy to quiet down dangerous crises with Syria and Iran while the neocons were pushing for more confrontation and U.S. military strikes.

But how did the U.S. news media present the Ukraine story to the American people?

First, there was the simplistic and misleading depiction of the pro-EU demonstrations as �democratic� when they mostly reflected the discontent of the pro-European population of western Ukraine, not the views of the more pro-Russian Ukrainians in the east and south who had pushed Yanukovych to victory in the 2010 election. Last time I checked, �democracy� referred to rule by the majority, not mob rule.

Then, despite the newsworthiness of the neo-Nazi role in the protests, the U.S. news media blacked-out these brown shirts because that ugly reality undercut the pleasing good-guys-vs.-bad-guys storyline. Then, when the snipers opened fire on protesters and policemen, the U.S. news media jumped to the conclusion that the killers were working for Yanukovych because that, too, fit with the desired narrative.

The violent overthrow of the democratically elected Yanukovych was hailed as an expression of �democracy,� again with the crucial role of the neo-Nazi militias largely airbrushed from the picture. The unanimous and near unanimous parliamentary votes that followed � as storm troopers patrolled the halls of government buildings � were further cited as evidence of �democracy� and �reform.�

The anger and fear of Ukrainians in the east and south were dismissed as Russian �propaganda� and Crimea�s move to extract itself from this political chaos was denounced as Russian �aggression.� U.S. news outlets casually denounced Putin as a �thug.� Washington Post columnist George F. Will called Putin �Stalin�s spawn.�

Former Secretary of State Clinton cited the Crimea situation to compare Putin to Hitler and to suggest that Putin was intent on recreating the old Soviet empire, though Crimea is only 10,000 square miles, about one-tenth of one percent the size of the old Soviet Union.

And, it wasn�t just that some or nearly all mainstream U.S. news organizations adopted this one-sided and misguided narrative. It was a consensus throughout all major U.S. news outlets. With a uniformity that one would normally associate with a totalitarian state, no competing narrative was permitted in the Big Media, regardless of the actual facts.

Whenever any of the more complex reality was included in a story, it was presented as Russian claims that were then followed by argumentative challenges. Yet, when U.S. officials made preposterous remarks about how uncivilized it was to violate another country�s sovereignty, the hypocrisy of their points went uncontested.

For instance, Secretary of State Kerry denounced Putin�s intervention in Crimea by declaring, �you just don�t in the 21st Century behave in 19th Century fashion by invading another country on completely trumped-up pretext.� But you had to look on the Internet to find any writer who dared note Kerry�s breathtaking double standard, since he voted in 2002 to authorize the U.S. invasion of Iraq in pursuit of hidden WMD stockpiles that didn�t exist.

This cognitive dissonance pervaded the U.S. press and the political debate over Ukraine and Crimea. The long history of U.S. interventions in foreign countries � almost always in violation of international law � was forgotten, except for the rare occasion when some Russian �claim� about American hypocrisy was cited and then swatted down. [See Consortiumnews.com�s �America�s Staggering Hypocrisy.�]

Careerism Prevails

Having worked many years in the mainstream U.S. news media, I fully understand how this process works and why it happens. Amid the patriotic chest-thumping that usually accompanies a U.S. military operation or American righteous outrage over some other nation�s actions, it is dangerous for your career to go against the flag-waving.

But it�s always been my view that such self-censorship is faux patriotism, as much as the happy storylines are false narratives. Even if many Americans don�t want the truth, it is still the job of journalists to give them the truth. Otherwise, the U.S. democratic process is distorted and made dangerous.

Propaganda leads to bad policies as politicians � even when they know better � start parroting the errant conventional wisdom. We�ve seen this now with President Obama who � more than anyone � realizes the value of Putin�s cooperation on Syria and Iran but now must join in denouncing the Russian president and demanding sanctions.

Obama also surely knows that Yanukovych�s ouster violated both Ukraine�s constitution and principles of democracy, but he pretends otherwise. And, he knows that Crimea�s secession reflected the will of the people, but he must insist that their vote was illegitimate.

At a March 25 news conference in the Netherlands, Obama toed the line of the hypocritical false narrative. He declared, �we have said consistently throughout this process is that it is up to the Ukrainian people to make their own decisions about how they organize themselves and who they interact with.� He then added that the Crimean referendum was �sloppily organized over the course of two weeks� and thus a sham.

If Obama were telling the truth, he would have noted that Yanukovych � for all his faults � was democratically elected in a process that was deemed fair by international observers. Obama would have acknowledged that Yanukovych agreed on Feb. 21 to a process that would have allowed for an orderly and legal process for his replacement.

Obama would have admitted, too, that the violent coup and the actions of the rump parliament in Kiev were both illegal and, indeed, �sloppily organized� � and that the U.S. government acted hastily in recognizing this coup regime. But double standards seem to be the only standards these days in Official Washington.

What is perhaps tragic about Obama is that he does know better. He is not a stupid man. But he doesn�t dare go against the grain for fear of being denounced as �na�ve� about Putin or �weak� in not facing down �Russian aggression.� So, he reads the lines that have been, in effect, dictated by neocons within his own administration.

I�m told that Obama, like Putin, was caught off-guard by the Ukraine crisis. But Obama�s unwillingness or inability to recast the false narrative left him with no political choice but to join in the Putin-bashing. That, in turn, means that Putin won�t be there to help Obama navigate around future U.S. war plans that the neocons have in mind for Syria and Iran.

Indeed, neutralizing the Obama-Putin relationship may have been the chief reason why the neocons were so eager to stoke the Ukrainian fires � and it shows how false narratives can get people killed.

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+70 # mjc 2013-01-05 11:02
Now that Matt Taibbi has opened our eyes to the extremely close connection of banks to our national government, it is very hard to think of our society as anything but a precursor to some version of fascism. The two political parties apparently still have disagreements but the failure of the Republican Party with its strong Tea Party leanings is really not respectable enough to play on the same field with the Democrats. This is even more obvious when we consider the latest $1 trillion dollar coin that has been suggested as a way to solve our debt problems. We have a central government willing to free itself from any of the shackles of a responsible, democratic republic...no matter what. One party government with the help of the media can be portrayed as some sort of big brother, totalitarian control necessary for order and prosperity, prosperity for the corporate sector, something much less for the rest of us. Lying and the grand size of the sector that actually controls our national government seems to ensure the failure of any republican version of the United States of America. If Taibbi isn't worried about his existence in this country, it must be because there are too few conservatives/f ascists who believe that the public reads such articles or that the public prefers order to the pursuit of happiness.
 
 
+43 # letsfixit 2013-01-05 11:42
Fascism can take two forms...where the govt owns the means of production or...

the corporations own the government.
 
 
+13 # MHAS 2013-01-05 15:28
If the government is in fact a true democracy--is in fact controlled by its citizens and accountable to them with full transparency--a nd owns the means of production, that is not, by definition, fascism. If the gov't is in fact an oligarchy or dictatorship and has such control over production, it has much in common with fascism. There are historical instances of democratic control of industries.
 
 
+10 # Yakpsyche 2013-01-05 19:29
We've got the second type.
 
 
+4 # tm7devils 2013-01-06 13:16
The corporations and the banks have owned our government for well over 30 years...how long will it take the American people to wake up?
We have a democratic government in name only.
The American people, for the most part, are the most apathetic, self-serving and ignorant group on this planet. A bunch of gutless wonders who are willing to bury their heads in the sand so they don't have to put themselves out so as to not impinge on that soft and easy lifestyle they so relish.
The only mitigation to this is our Fourth Estate who, when it comes to giving the American public the information it needs to be able to create checks and balances on our government, are as useless as teats on a boar...and we are now paying the price.
The Executive branch and congress(except for maybe, maybe! 20 individuals) should be run off the hill and replaced with people who can think critically, aren't bought and have the well being of US citizens at the forefront thinking and actions...along with the well being of the rest of the World.
Right now, it's a case of the blind and the stupid leading the blind and the ignorant.
Under the oligarchic/fasc ist/police state we now have we won't last long.
ROME - The sequel!
 
 
+3 # DevinMacGregor 2013-01-06 15:43
We do remember that the Roman Republic lasted 500 years. The Western Roman Empire lasted 500 years more. The Eastern Roman Empire lasted 1000 years beyond that. So we could be seeing a lot more of this crap for a hell of a lot longer.

As much as I might agree with you otherwise I do not see that we are the most in any of that.
 
 
+4 # Vegan_Girl 2013-01-07 05:37
Yes but history seems to be accelerating, probably due to advances in technology. I think the end (or beginning) is near.
 
 
0 # Michael Lee Bugg 2013-01-10 15:40
Amen!
 
 
+10 # DevinMacGregor 2013-01-06 15:36
That is incorrect. Mussolini said it best: fascism should be considered corporatism.

If the govt owns the means of production we call that Communism.

People I think confuse totalitarianism with either system.

BUT ... govt run health care is not fascism. Forcing people to buy privately owned health insurance btw IS leaning towards fascism.

Republic means govt by people not owned by any elite class such as a monarchy OR the rich. This includes corporations. When those entities have a better voice than the general public then we move towards fascism.

But the Republic owning the commons is not fascism. The same as the govt owning the Post Office or Amtrak. Neither are fascism.
 
 
+3 # jmac9 2013-01-07 14:57
Though you might think it unrelated - we must have government - federal - start respecting state decisions - this petition asks Joe Biden and Obama to let the citizens vote stand in Colorado and Washington State - then we can also start to have state banks etc.
https://petitions.whitehouse.gov/petition/tell-vp-biden-end-his-war-marijuana-users-and-respect-people-colorado-and-washington/m4fQdJ4H?utm_source=wh.gov&utm_medium=shorturl&utm_campaign=shorturl
 
 
+2 # CandH 2013-01-05 13:43
 
 
+6 # RLF 2013-01-06 07:50
There seems to be little to recommend the Democrats, seeing that they had control of the house and the senate for two years while this was happening and couldn't be bothered to read or understand the paperwork. The bunch of them are disgusting and Obama, who has bent over backwards to be a Republican, has been incredibly ineffectual at providing any sense that our government works for the people and not banksters. To busy checking out his own facebook page and asking for money from the same people he has screwed.
 
 
+56 # wantrealdemocracy 2013-01-05 11:04
Oh, shit! We are screwed. The government will keep pumping our money to the crooks and so it is up to us to stop this. Take all of your money out of the banks. They feed off lending your money out while they pay nearly nothing to you in interest. You lose money by the day to to the falling value of the dollar. Take your money out and pay your bills with cash. If you have money to save don't put it in the banks. Buy things of lasting value. It is all gonna crash and you can cover yer ass if you have things of value to use to barter in the new economy ahead. We can starve the beast that is eating us if we end their 'liquidity'---t hat means take our money out of the system.
 
 
+21 # Virginia 2013-01-05 12:05
The only way to correct the system is to starve it. And if you want your retirement funds you should take them out now before Congress increases penalties for early withdrawals to stave off bank runs - because right now there is not enough money to cover the majority of the fictitious funds - first come, first served.

Homeowners, whether in foreclosure or current, need to know where there loan is because it appears TARP funds may have been paying off the investors which may have kept MBS trusts current. If the trust is showing no losses, how can it claim damage and sue for foreclosure?

The big debate now is if my loan is in a trust and Uncle Sam made my mortgage payments (thank you very much) to keep the trust current - maybe some of the TARP money actually did help homeowners. It's just that the banks want their cake and eat it too.

If you don't know where your loan is run a Bloomberg Terminal search and request the excel that shows payments and losses for the tranche(s) where your loan is located. See www.doctelportal.com if you need help finding your mortgage loan.
 
 
+43 # Skeptical1247 2013-01-05 11:33
I knew it was bad, but these additional details pretty much nauseate me. The unbelievably corrupt behavior on the part of ALL concerned - bankers, regulators, administration officials of both parties and Congressional representatives of both Parties is just sickening. And the prospects for this situation ever changing are dim indeed.

The only action to be taken would appear to be an emotional one rather than a "solutional" one, although it might contain the seeds of a solution, and that is to withdraw and divest one's self from every possible connection with a "system" of banking and governance that is corrupt beyond imagining.

Withdraw your money AND your debt from the big banks, eschew debt, especially credit card debt. If your credit rating is shot anyway and you are on the brink, declare bankruptcy. Downsize your lifestyle voluntarily instead of letting the next national or personal catastrophe do it for you. (less painful by far) If you have any assets in the market, withdraw them from ANY corporation in which the CEO's have committed themselves to screwing you politically as well as financially. Biotech industries, war-mongers, armament manufacturers, banks and securities firms, resource extraction firms, all of which are dedicated to your slow death or impoverishment, need to be withdrawn from. Both Parties need to be withdrawn from.

I believe it does holds the seeds of a solution, but if not, it might make you feel better.
 
 
+15 # barkingcarpet 2013-01-05 11:47
Legitimate rapist bankers and corrupt corporate beholden selfserving politicians.... Endless wars, Fukushima still spewing, etc, etc.
When is the public going to put an end to the stupidity?
We ARE the power folks, and can change the world with every waking $$. What ARE we choosing, allowing, and going along with?
I am ashamed to be an Amerikan, and proud of it.
 
 
+4 # Yakpsyche 2013-01-05 19:36
Hello? We ARE the power? Would you care to describe just exactly HOW we are the power? I declare, I don't think I'm the only one that feels rather powerless. What do you recommend we DO to exercise our power, overthrow the plutocrats and take back our country?
 
 
+5 # Vegan_Girl 2013-01-07 05:40
Occupy...
 
 
+13 # gdp1 2013-01-05 11:49
...I must commen Matt on his relentless research into these arenas....when the Big Fail comes, he will be the 'historian' of note, the only (surely not!) one doing his homework....but .....what can be done?The inertia of this corruption is Too BigTo Overcome...what can a little guy do....but watch?....
 
 
+9 # to be 2013-01-05 11:57
Thanks as always for your pro taxpayer articles. The only thing the federal government has really ever done directly for me is to help me out lower my mortgage rate to 2% and drop my monthly payment 400 bucks a month. I'm told I'm an anomoly, but whatever, it's good to still be in my house!
 
 
+23 # ladypyrates 2013-01-05 12:07
...what a busy fellow you are to have uncovered the sordid details of the Fed's behavior, my dear boy. It's obvious that you haven't read paragraph 28 of the original Federal Reserve Act because if you had, you would not be so astonished. There was a very capable economist back in the 30s and 40s (who happens to have been a woman) who researched the structure of the Fed and reported to the public the danger that the private-banker- owned Fed posed to the American system of government. Perhaps you can imagine what the banker cabal did to that woman's career...but in any event, her warnings were ignored and we now have a bankrupt country. Don't misunderstand the isses here...an elastic currency is essential for our economic vitality but that currency has to be controlled by Congress and not the private bankers. Sadly, the cover-up continues on a daily basis wih the media offering up silly reasons for our situation and not one bit of it even begins to point at the causation which began 100 years ago.
 
 
+5 # Quickmatch 2013-01-05 12:23
Skeptical1247, I'm writing to you from 2023. The nation read your 2013 piece about dropping out, etc and we the people got the heat and forged ahead. We constrained our lifestyles, quit buying clothes, quit buying more food than necessary, bicycled or walked everywhere (we all look slim and fit now)quit our jobs, emptied our bank accounts and brokerage accounts. Today everybody is unemployed. Nobody is producing anything. All farming is none by hand and animal power--we're producing 1/4 the required foor to live on (did I say we all look slim?). I'm writing this to you to suggest that, before you go off half cocked on some simpleminded quest you should study up on the situation and try not to kill the patient through simpleminded cures. Good luck, though. I'm here; I see the future, and if you should live so long, you're screwed!
 
 
+11 # Eliza D 2013-01-06 15:02
Quickmatch, read Skeptical1247's post more carefully. The writer did NOT say we should quit our jobs. His/her suggestions are the least of what we should all do. We should (and my family has) transfer all our money from banks to credit unions, transfer mortgages to credit unions and starve these demon banks. I agree with many others on this site who feel we are headed for a time of horrendous "austerity" and suffering. In that case, it would be wise to learn how to live more simply for our own financial health as well as the health of the planet. Furthermore, because of the drenching of our farms with pesticides and GMOs, many of us are already doing small scale farming and raising food animals to avoid being poisoned by Big Food. I say to Big Food,Big Pharma, Big Banks,Big Oil: "We've had enough of you!" Fall into the sewer of history.
 
 
+8 # Smokey 2013-01-05 12:29
For a lot of Americans, the Great Recession is still in progress. Many more are waiting for the economy's house of cards to collapse. Maybe that happen before the 2014 elections.
(How do you spell "shellacking"?)

Shell lacking? More like Shell gaining. Although it's not alone.

Unemployment? The official figures went down because many workers stopped searching for work. Many settled for "underemploymen t" and various part-time and even illegal arrangements.
 
 
+29 # tomtom 2013-01-05 12:39
Yeah, all the middle class and poor withdraw all their extra money from the banks. What extra money? Hand to mouth, day to day, week to week, month to month. Everone's money is tied up in a garage sale on their front lawn.
 
 
+29 # Tiffany49 2013-01-05 12:45
Give Matt Taibbi a pulitzer!
 
 
+2 # Old Man 2013-01-05 13:03
Credit Unions are a much better place to bank.
Wish, hope and think are all procrastinating words, so I'll say it this way, when Elizabeth Warren gets to the bottom of this fiasco something will get done.
I respect Matt, but he sounds a little like chicken little.
 
 
+10 # Shorey13 2013-01-05 13:05
Larry Summers "explained" all of this early on, when he said "We have to make the bondholders good. If we don't, the whole system will collapse." In other words, taxpayers, shareholders, consumers, in short, everyone except the "bondholders" are screwed, have no skin in the game. Quickmatch may be exaggerating the consequences, but the general point is well taken. Yet, continued cancer-like "growth" is a death sentence for the planet. The House of Cards we call a financial system will eventually collapse, so the main responsibility of Progressives is to lay out an alternative economic system. It can be done.
 
 
+8 # elmont 2013-01-05 13:27
Anyone who knows someone who has tried to get help with a mortgage loan modification is well aware of the fact that the Feds and the banks are doing doodly-squat to help the people most hurt by the 2008 crash. Matt, thanks for explaining the how and the why.
 
 
+6 # DaveM 2013-01-05 13:30
I'd like a bailout. Problem is I do not need or want enough to justify the paperwork (and also have no lobbyists). Around $100,000. I would not ask for that money without strings attached: in return I would offer the use of the product(s) purchased with the proceeds as a living laboratory for the testing and evaluation of green technologies.

I would expect no salary and be happy to provide ongoing data which would in due course yield millions of dollars in benefits to the government and to the people of the United States. The grant would also put an end to certain government "subsidies" I currently receive, which over my expected lifetime would more than offset the $100,000.

I am purposely being vague here, but....just at a glance at least portions of this must appear to make sense.

You know what the major problem is? The government doesn't think in numbers that small any more.
 
 
+3 # reiverpacific 2013-01-05 13:58
"Goldman CEO Blankfein later dismissed the importance of the loans" [quote from article].
Ah well, he was doing, by his own words "God's work" wasn't he?
Poor ol' God, it gets dragged into and through all kinds of reeking shit dunnit?!
 
 
+9 # Big Jake 2013-01-05 14:56
Great piece, Matt. Sadly, it is reflective of the sewer that our nation's capital has become. We, the people, are barely noticed as even existing. Lincoln explained this long ago. Labor must precede capital and in fact, capital cannot come into existence without labor. We have completely abandoned this absolute truism.
The writer has given us insights into just how corrupt the whole system is. However, I doubt if he or any major journalist understands that this is the natural consequence of a bad money system. Not merely corrupt but inherently bad.
It has taken us 100 years to see the real consequences of our political leaders abandoning their responsibility and violating the Constitution by transfering our monetary system to private banking interests. Like in the political cartoon/speech, when you put the cats in charge, they just do what comes natural to cats. They are devouring our nation. Can it be rescued? I think so but our window is not infinite. It is truly up to "We, the People." and we do not seem to have suffered enough as yet. I hope I am wrong.
 
 
+9 # Big Jake 2013-01-05 15:03
I forgot. We have 2 recent trial runs for the bailout. Both in the mid-80's. The collapse of the Savings and loan system once it was allowed to use Fed style money creation and loan endless amounts on ficticious values, and the Farm Credit system that did the same thing---loaned massive amounts of money raised by bonds to lend to farmers while the real need was to prop us the balance sheets of the Bank. FCS threatened Congress directly to default on their bonds and send the nation over the fiscal cliff. Congress caved in but instructed the Bank to assist its borrowers. Not one farm in the nation was helped. As in interesting note, the Farm Credit System is doing at this moment the exact same thing. They are lending amounts based upon massively inflated real estate values and it will end the same way. The taxpayer will be expected to bail out the bank and screw the borrowers.
 
 
+5 # brux 2013-01-05 16:01
Yeah, well written.
 
 
+8 # GDC707 2013-01-05 19:12
Another tremendous piece, Matt. I am sharing it as widely as i can. Unfortunately most people just don't know enough and really don't care. Sheep, lined up for shearing.
 
 
+8 # seniorcitizen 2013-01-05 19:51
There is one person who will fight the big banks, and that is newly elected Senator, Eliz. Warren from Mass. She understands banking and hopefully will help undo this travesty. This mess is worse than I thought. It makes me madder than anything that has taken place in the last 4 years. We the people need to let President Obama know that we expect him to do everything that can be done to get money moving for loans to business and to help homeowners with mortgages. I have moved my money to a credit union and I refuse to borrow from banks or use credit cards, except the one from my credit union. Some others who have posted have urged that we remove our money from the big banks. If enough people do it, it will send a message that we mean to take our nation back out of the control of the "banksters". More people need to be informed about what the bailout is all about. Thanks for this article, Matt.
 
 
+5 # jayvee 2013-01-05 21:38
Thank you Matt for much needed enlightenment on this dark and taudry subject. It was always [an unexplained] mystery to me how within a year, the largest recipients of TARP and Stimulus
handouts -- with no loans to businesses, no mortgage assistance to the millions of underwater and bankrupt homeowners, yet millions in bonuses to CEOs, execs, and similar misdeeds -- could so soon pay off billions in goverment handouts. At least part of the answer came in two obscure articles that appeared in the last year: The largest recipients quickly bought US treasury bonds with the huge taxpayer handouts, at handsome interest rates. Upon maturity, the big recipients repaid the government handouts and pocketed lucrative interest payments (again at taxpayer expense) with not a modicum of assistance to the ailing US economy. How could such an obvious "slight of hand" escape the eyes of government overseers ? PBS' Frontline" ran an excellent documentary on the bailout and the political playout in realtime. The Frontlines documentary should be required viewing for every US taxpayer.
 
 
+5 # MainStreetMentor 2013-01-05 21:55
If Matt Taibbi's investigative reporting finds these things - and they can be verified, why isn't there a flood of indictments against these miscreant financial rapists? It leaves one to believe that our legislative and judicial systems may be owned, lock, stock and barrel by the ethically bankrupt and the morally decayed.
 
 
+9 # adickinson 2013-01-06 03:18
Matt Taibbi is amazing. What a great writer, and how brilliant at research! We all need to know these things that he reports. Someone above, in the comments, questioned how the people are powerful. we are the ones who vote, not the corporations, and not the banks. Just like unions, back in the day when they organized, when people stand together, they win. Ideas suggested about taking money out of banks and corporations is one way. Also, being careful how we spend. Only invest in enterprises that support people rather than crush them. Boycott Walmart, for an obvious example. Use credit unions. Buy local produce, organic. All these ways will starve the beast, as someone pointed out. And keep reading writers like Matt Taibbi, watching Democracy Now! with Amy Goodman (or listening on the radio or going to democracynow.or g.
It's tough not to get discouraged. If you have money in the market, ask your investment person to make sure you are not investing in weapons and other horrible enterprises, at least. Share ideas. I'd like to hear other ideas. Yes, this country has drifted toward fascism. "Rage against the dying of the light."
 
 
+1 # FDRva 2013-01-06 09:49
Outstanding piece by Tabibi.

But there is one obvious question he neglected to address.

Where was the sainted Barack Obama when all this was going on? Admiring himself in the mirror while Geithner, et al called the shots?!?

Sounds like the Commander-In-Ch ief was no better than 3rd in command behind Geithner and Bernanke.

And just like that noted genius GW Bush--BH Obama was perfectly happy with that arrangement.

Lesser evil arguments in politics seldom get less than evil results.
 
 
+3 # grouchy 2013-01-06 10:43
Sounds like, as I long ago concluded, the banks already own us!
 
 
+2 # hammermann 2013-01-06 15:01
Wow. This is how I explain my deep disquiet at the organized criminality that has been institutionaliz ed throughout the banking/investm ent business.. and my feeling that it's going to lead to another crash where no one gets up again. "One nation under justice", eh? Taibbi is the most important reporter in the world.
 
 
+3 # treadlightly 2013-01-06 20:34
I am not familiar with Propublica but from the looks of it they have managed to do a good job of tracking the bailout money.

http://projects.propublica.org/bailout/

Very current too, December 19 2012
 
 
+3 # Kwamined 2013-01-07 06:30
 
 
+3 # Shermerville55 2013-01-07 18:02
If you have a mortgage and you belong to a credit union, check out refinancing with them. We thought we couldn't refi because the banks/mortgage lenders all charged such high fees that it wasn't worthwhile to refinance. BUT the credit union's fees are much lower. It probably helps that our mortgage balance isn't very high. And it is such a relief to be free of the evil banksters.
 

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