Archive for October, 2014

In Suppressing Hong Kong Protestors

Posted in On Foreign Affairs with tags , on October 26, 2014 by playthell
Hong Kong Demnstrations II 
A Mass Demonstration in Hong Kong

 China is really aiming at the Elephant in the Bushes!

When China regained sovereignty over Hong Kong from British rule in 1997 – the city had been stolen by Britain and turned into a Crown Colony in 1842, under the terms of the Treaty of Nanking which ended the first Opium War – they didn’t envision the probability of the kind of mass demonstrations they are facing today; the implications of which spell real trouble for mainland China. Hence I would argue that the strategy employed by the Chinese Communist Party leadership in suppressing the “pro-democracy” movement led by students is really intended to send a message to the rest of China that mass demonstrations will gain them nothing.

In accepting the Basic Law, which amounts to a mini-constitution tailored for Hong Kong under which the city would be governed, the Chinese government announced a unique philosophy of governance based on a two tiered policy: “One Country two Systems.”  This policy was intended to reassure the banks and other financial institutions – the most powerful in Asia – located in the rich and beautiful sea side city that they had nothing to worry about from the Communist Party that ruled the mainland with an iron fist and promoted policies that are anathema to “free market” capitalism.

The Chinese rulers made it clear however, that there would be no attempt to nationalize the “private sector” that had generated so much wealth; indeed they would use it as an engine for generating foreign exchange and an instrument for financing business deals with the capitalist economies.  In other words they viewed the business acumen of Hong Kong as a boon to China’s paramount objective: to achieve a high degree of economic development and modernization in the shortest possible time.

China’s domestic and foreign policy is directed toward this aim. We can readily observe this in their policies on family planning as well as their foreign policy of strict non-interference in the affairs of other countries and their steadfast refusal to become involved in foreign military adventures, while building a formidable technological infrastructure designed to propel their economy into a dominant force in the 21st century, and a military machine that makes an invasion of China unthinkable!

The Chinese communist have shown a unique ability to tailor Marxist dogma to Chinese realities going back to Mao Tse Tung’s scrapping of a fundamental tenet of Marxist/Leninist analysis: that the industrial proletariat is the historically appointed class to lead the socialist revolution.  Instead Mao decided that in China, a quasi-feudal pre-capitalist society with no industrial proletariat to speak of, the revolutionary peasantry would assume the historic task of leading China to socialism. For Marxist this was like denying the theory of evolution to biologists; for the Marxist believes Marxism to be as scientific a method of analyzing the “laws of society” as biology is for analyzing the living world.  In fact, Frederick Engles – a biologist, close intellectual comrade and patron of Karl Marx – argued as much.

The adoption of a policy of allowing a bastion of unfettered capitalism to exist under the rule of a communist party was viewed as no less a heretical act by doctrinaire Marxist.  But as in the beginning the Chinese continue to shape Marxist theory to fit Chinese realities, rather than follow the Russian model of “dismissing reality when it didn’t fit our theories,” which the official ideological advisor to former premier Andropov gave as the major reason for the collapse of Russian communism.   I would argue that this willingness to adjust to reality and innovate is the major reason for the spectacular success of the Chinese Communist Party in converting China from a footstool of the western capitalist nations into a world power in just 66 years!   It also explains why they are still in power even as their would-be Russian Communist “tutors” have receded into history.

By any objective measure – i.e. free of ideological considerations – this is a remarkable achievement.  As I have written elsewhere, I believe the Chinese Communist Revolution is the greatest mass transformative movement in history.   However the Chinese Communist Party is now faced with an unintended consequence of their reclamation of Hong Kong, a spontaneous mass uprising demanding an unfettered democratic process where those who would rule over the people of Hong Kong must have the consent of the governed achieved through popular elections!

In the Basic Law governing Hong Kong agreed to by the Chinese government 19 years ago, the people were given the right to choose their officials through universal suffrage i.e. one person one vote. The present dispute centers around how the candidates will be selected.  The masses of people who have turned out in the pro-democracy demonstrations, led by Student Federation, just like the Student Non-Violent Coordinating Committee in the fight for Afro-American voter rights in the American south during the 1960’s, insist that the candidates who stand for office should be also selected by a popular vote like the US primary elections.

However the Leader of Hong Kong’s government C. Y. Leung, whose official position is Chief Executive and is backed by the Chinese government in Peking, views the matter differently.  Leung firmly supports the selection process now in place in which a selection committee appointed by Chinese premier Xi Ping will screen and pick the candidates for whom the people of Hong Kong may vote.  Ironically, despite all of the self-righteous chatter from the US State Department, this process resembles the “white primaries” that shaped racial politics in the American South which maintained “white supremacy” based on a legal racial caste system well into the twentieth century, in which black Americans could only choose between pre-selected white racist candidates.

And notwithstanding US denunciations of the Chinese interpretation of “universal suffrage,” the recent Supreme Court decision in “Citizen’s United” will increasingly have the effect of offering up candidates that have been pre-selected by the plutocrats.  Thus one could argue that in essence these two systems of selecting candidates represent a distinction without a real difference: Both are the antithesis of popular democracy. It took a mass movement to attain true universal suffrage in all regions of the US, in which blood was shed and lives were lost as a result of a collaboration between government and white terrorists, which bears a shocking resemblance to the goons now attacking the pro-democracy demonstrators in Hong Kong who appear to have covert government backing.

On Tuesday representatives of the Hong Kong government sat down with leaders of the Hong Kong Federation of Students to explore the possibility of devising a solution to the crisis.  Alas, based on the statements issued by both sides to the press at the end of their meetings they were like Jack the Bear, made some tracks but got nowhere.  CEO Leung decided to play past the powowaltogether and dispatched his second in command, Chief Secretary Carrie Lam, who offered the following statement to the press.  “”We should work within the system and enhance the transparency and competitiveness of the system as a whole.  This is a good opportunity and a meaningful dialogue. I hope the community will stay united.”

The student leaders made it abundantly clear that they weren’t buying what the government was selling.  Like all people who are about serious business Alex Chow wanted to establish a time table for reaching specific decisions.  To him this went right to the heart of the matter: deeds not words.   He asked: “Why did people come out? People felt like they had no choice. They had to come out and make their voices heard.”  Secretary Lam assured them that the government heard the voices of the students and added, “But no matter how lofty the sentiments, you must take legal means.”  This is evidently the party line issued from Peking because the Chinese Foreign Minister, Wang Yi, said almost the same thing to American Secretary of State John Kerry at a their recent meeting in the US.

However the Hong Kong students, just like the members of SNCC during Freedom Summer 1964, feel that the law does not address their just grievances and therefore they must petition the government for redress through mass protests by the citizenry.  The resemblance to the US student movement is uncanny.  For instance student leaders, led by their Secretary General Chow, even showed for the meeting with government officials dressed in black T shirts with a favorite slogan of SNCC “Freedom Now!” emblazoned across the front.

And like Afro-American students in the far more oppressive and murderous environment of Mississippi, Alabama, Georgia, Florida, South Carolina, et al – the entire southern half of the USA – the Hong Kong students are willing to pay the price for speaking truth to power. Lester Shum, an aide de camp to Mr. Chow, asked some poignant questions that went straight to the heart of the matter. “”Why are we willing to be arrested? Why are we willing to camp out for 24 days? Why are we willing to bear the risk of being tear gassed, smashed on the head with batons?   We just want the right for democracy.”

When Secretary Lam assured the student leaders that she was compiling a through report on all that has transpired since the demonstrations began, Mr. Chow asked “What concrete change will this report lead to?  Will it help lead to adjustment of the framework or the future direction of legislative council elections?”  His question went unanswered, and thus the stalemate.  However the students can garner some encouragement from the fact that four high ranking members of the government did meet with them to discuss their grievances, and it was broadcast live on television from an auditorium at the Hong Kong  college of medicine and many of the seven million residents of the city tuned in.

Yet when all is said and done the students did not achieve any of their demands from the government, all they got was hollow promises and spurious rhetoric. Hence when viewed in the light of present realities in Chinese politics I fear that the student movement is doomed to defeat.  If the issue was merely a matter of Hong Kong politics perhaps Peking could find a way to accommodate the student’s demands; it would be considered the price of peace.

But they will not make concessions to the demonstrators at the expense of destabilizing the mainland, which they justifiably fear would demonstrate to the billion and a half citizens across the vast expanse of China that government policies can be influenced by mass action.  That is the danger that Peking fears most.   They have witnessed the fall of the Russian Communist Party, and watched numerous well entrenched authoritarian governments all across the Middle-East collapse like paper tigers during the “Arab Spring,” and they do not intend to follow them into oblivion.

When we look at the major ally of the Communist Party in thwarting the popular democratic movement in Hong Kong, we find eloquent testimony to the enduring veracity of Lenin’s axiom: “politics makes strange bedfellows.”  For next to the Communist Party the folks who most want to crush the movement for a wider democracy through universal suffrage are the Hong Kong capitalist elites.  Consider the opinions of CEO Leung Chun Ying regarding true universal suffrage.  After making it abundantly clear that he had no intention of stepping down from his high office, despite student demands, and that he fully supported the committee method of selecting his successor, he offered some candid opinion.

According to the New York Times CEO Leung said: “You have to take care of all the sectors in Hong Kong as much as you can.  And if it’s entirely a numbers game and numeric representation, then obviously you would be talking to half of the people in Hong Kong who earn less than $1,800 a month.  Then you would end up with that kind of politics and policies.”  Shades of Marie Antoinette and Mitt Romney; these gluttonous cretins seem to always be the same wherever they pop up on the historical stage, which exonerates the insights and lends gravitas to CLR James axiom: “The rich can only be trusted when they are running for their lives.”

The Chinese communist understand this well as adherents to the communist vision of Marx, but they have made yet another deviation from classical Marxist dogma in their brazen collaboration with the class enemy in order to achieve a larger goal: maintaining the stability of Mainland China so that they can continue a steady march on the path to rapid modernization. Chinese President and General Secretary of the Communist Party Xi Jinping, who is considered the “Paramount Leader” – a title formerly reserved for the late father of New China Mao Tse Tung – is committed to the belief that in order for China to effectively carry out its modernization program the Party must be firmly in charge of the nation’s affairs. He has left no doubt that the Party leadership is totally committed to achieving their goals by any means necessary.  Hence when weighed against maintaining a stable disciplined society, crushing the Hong Kong student movement is no big deal.

 The Chinese are building a 21st Century Infrastructure
 Beijing_Capital_International_Airport_200908
American businessmen marvel over this Airport with high speed trains

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Playthell G. Benjamin

October 24, 2014

Turkey Fiddles While Kobani Burns

Posted in On Foreign Affairs, On War and Peace in the Mid East! with tags , , on October 9, 2014 by playthell
kobane Burns
ISISL’S Scorched Earth Policy

 On the Anatomy of a Bloody Quagmire

As I write, President Obama is meeting with his military advisors to discuss US strategy in the war against ISISL, which is on the verge of capturing yet another city and annexing it into their newly formed Caliphate under the ruthless leadership of Caliph Ibrahim – a radical Muslim theologian who regards himself as a soldier of Allah.   It’s a sure bet that anyone with an affection for puzzles, make believe, and games of self-deception would be mightily entertained by the proceedings when Barack meets with his war counselors.

It is obvious to any candid observer well acquainted with the realities of the Sunni Jihad in Syria and Iraq, and the Caliphate they have established,  in an area that includes land from both countries which they intend to extend from Damascus to Baghdad, that the present American policy will not work.  In fact, it is more than fair to say that in the fight with ISISL the US is working at cross-purposes with itself.

There are so many contradictions among the various forces fighting in Iraq and Syria that as the bullets continue to fly, the conflict will increasingly resemble a circular firing squad!  For instance the coalition that could quickly and efficiently wipe out ISISL would include Iran, Turkey and the Kurds, led by US airpower and intelligence.  Since they are the ones directly menaced these countries should supply the main ground forces, with whatever number of American advisors they require on the ground.

But President Obama has repeatedly pledged not to put “American boots on the ground” in any of these countries.  Furthermore identifying an effective coalition is one thing, while being able to forge a working alliance is quite another.  The problem in the present instance is that there are longstanding grievances between the various parties who would make up the coalition, and the kind of wise statesmanship based on realpolitik that the situation demands is sadly lacking.

Alas, since the United States has taken an ironclad position that Iran is our mortal enemy, no alliance can be made with them.  Yet it is the US that has repeatedly launched aggressive actions against Iran, who has no history of aggression against the US, while Iran and the US both share a vital national interest in destroying ISISL.  It is all too clear that eschewing an alliance with Iran is a shortsighted view of diplomacy that may yet prove disastrous, for the paramount US objective in the region is the defeat of the ISISL Caliphate.  Yet as I write the Jihadist forces are advancing on every front.  They are literally at the Turkish border.  However the Turks are content to park their tanks on the hills above Kabone in a show of force while ISISL wreaks havoc below.  Pleas from the Kurds for the Turks to engage ISISL and prevent them from taking the city have thus far fallen on deaf ears. In fact Turkish President Erdogan has said on record that he considers the PKK, the Kurds’ major militia that the US is now arming, to be just as much a group of terrorists as ISISL   The US formerly shared that view.

 Turkish Tanks cover the Hills
Turkis Tanks on Hill above Kabone
All Show and No Go

As of Thursday morning the Turks have refused to engage ISISL Knowledgeable observers of events in the region believe that ISISL forces will soon occupy Kobane because American airstrikes are ineffective in preventing it.  This is largely due to the fact that ISISL forces are now mixed with the civilian populace, which limits the use of bombs lest the US end up killing more innocent people and winning more recruits for the Jihad.

However the hesitation of the Turks is largely due to the fact that they do not wish to see the Kurds armed with state of the art weapons, because the Turks have been engaged in a long standing fight against the creation of an independent Kurdistan.  It also explains why the Turks have blocked the Kurds from using Turkish territory as a thoroughfare to ferry men and materials needed for the fight against ISISL in Kobane, despite the swelling chorus calling for them to do more in the effort to defeat the Jihadists.  But the Turks reply that they see no need to get involved in “a fight between two terrorist groups.”

Furthermore, the US’s stated objective is defeating ISISL but the Turks are also interested in defeating the Assad regime in Syria, which is not part of the US Mission, although the Obama Administration is on record as opposing that regime.   However by opposing ISISL, al Qaeda, the al Nuesra Front and any other offshoots of the radical Sunni Islamists, the US is an objective ally of the Assad regime who also oppose these same forces.  Hence when we consider the main US plan of action which is to arm and train a ragtag force of military novices called “The Free Syrian Army,” whose paramount objective is to defeat the Assad regime, there is not much room for optimism.

Lest we forget, the US spent a decade training the Iraqi National Army and equipping them with top shelf American weaponry, but in their first real battle against ISISL four divisions fled like terrified school boys and left all of their weapons in the field!  Those weapons are now part of ISISL’s arsenal. The question begged by this recent history is: What makes American military planners believe the “Free Syrian Army” – which it is estimated will be ready to take the field in a year – shall fare any better against ISISL forces?   One does not need a crystal ball to see the future here: Any weapons the US supplies to the so-called “Free Syrian Army” are destined to end up in the hands of the Jihadists.

This will make ISISL forces even harder to defeat as they become firmly ensconced within the territory they have claimed for the caliphate; which means that those tasked with extracting them could end up on the job for a long time.  In testimony before the House Committee on Armed Services on July 29th 2014, Dr. Stephen Biddle, Professor of Political Science and International Affairs at George Washington University, argued that there was little hope for an Iraqi “government offensive able to regain control over ISIL-occupied areas in the old Sunni Triangle.   Even U.S. Army and Marine forces with massive air support found these areas difficult to control before 2008; this goal will remain beyond the Government of Iraq’s reach for a long time to come. “

Referring to the statistical data regarding civil wars like those in Iraq and Syria Dr. Biddle testified to the committee “Wars of this kind are rarely short. Of 128 civil wars fought between 1945 and 2004, only one-fourth ended within two years. Datasets vary slightly with war definitions and other details, but most put the median duration of such wars at 7-10 years, with an important minority of conflicts dragging on for a generation or more.”  Hence when critics of US policy aimed at “eradicating ISIL”  refer to it as a new  “thirty year war,” such as longtime conservative pundit and presidential advisor Pat Buchannan, they are not just engaging in anti-Obama hyperbole.

In view of these grim realities the US appears to be trapped in a quagmire from which there is no foreseeable road to victory, and no acceptable path of retreat.  It is as if the entire Middle East is a giant quicksand pit in which US forces – like our dreams for a peaceful, prosperous, stable and pro-American region –  are trapped and slowly sinking.  Alas, despite America’s air strikes Kobane burns from ISISL’s fire while our allies the Turks – who possess a formidable military arsenal of almost 4000 tanks and hundreds of aircraft – fiddle away on the hillsides and watch the action as two “terrorist” groups slaughter each other.  In fact the blase Turks wonder what all the American anxiety is about.  “The civilians have all fled Kobane,” said a spokesman for the Turkish government, “there is no tragedy here.”

 

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Playthell G. Benjamin

Harlem, New York

September 9, 2014

 

 

Senator Warren is Right: Investigate the Fed!

Posted in Playthell on politics with tags , , , on October 2, 2014 by playthell

Carmen Segarra

She exposed Fed’s unsavory relationship with Financial Industry

Was the Fed’s Relationship with Goldman Sachs Criminal?

The revelations of a former Bank Regulator with the Federal Reserve Bank of New York, Carmen Segarra, provides a shocking insider’s view of the unhealthy relationship between the nation’s top financial institutions – the Wall Street crowd that wrecked the US economy and sparked a global recession – and the Federal Reserve Bank of New York which is tasked with regulating them.  Ms. Segarra, a highly qualified lawyer who holds degrees from Harvard, Cornell and Columbia universities, and has also studied international law at the Sorbonne in Paris, has not only spilled the beans about shady dealings between federal regulators and the mammoth Wall Street investment banking firm of Goldman Sachs, but has charged in court that she was fired for vigorously pursuing her duties.

Usually these kinds of shady dealings are inside stuff, the kind of secret palavers that never enter the public sphere; hence should a whistle blower go to the press it’s a “he says,”, “she says,” dispute.  Ms. Segarra realized this, and took steps to negate that problem by secretly recording the meetings she had with her superiors.  When she recognized what was happening, that bank regulators were still looking the other way at financial mis-dealings even after the great financial crash of the Bush years – she went to the Spy Store and purchased a miniature recording device that was easy to conceal and recorded 48 hours of meetings.

Ms. Segarra recognized that these kinds of massive organizations, whether government bureaucracies or private corporations, enjoy the services of powerful legal firms, while the whistle blower stands alone.  When one considers the fact that taking such a stand means that one’s career in the industry is over because no one wants to employ a squealer, and the whistle blower is left with what they can get from suing the employer for wrongful termination, a process that can take years – which is the situation in which Ms. Segarra now finds herself now – it takes a person of heroic character to step forward with allegations of wrong doing.

However Ms. Segarra’s actions flowed from her motives for becoming a bank regulator.  Whereas many of her colleagues viewed their position as a stepping stone to employment in the banking industry, Segarra took the job because she witnessed the financial devastation of her friends and family as a result of the Great Recession resulting from the Bush Administration’s policy of non-regulation of the financial industry.

After the passage of the Dodd-Frank Bill establishing a new regulatory regime on the nation’s financial institutions the FED hired a new group of regulators to vigorously enforce the new regulations.  Ms. Segarra took one of those jobs in the belief that she could use her expertise to help fix our broken banking system. “I actually studied business law and regulation in law school.” She tells us.  “I co-wrote a law review article on Y2K [the millennial computer bug], which ended up being published. As a result of that, my co-author and I were asked to work on setting up the Y2K legal and compliance program for a bank. I discovered early on that I enjoyed learning about a law and immediately applying it, much the same way that I enjoy learning and speaking a new language.” She speaks several languages by the way.

Ms. Segarra goes on to tell us “as a general practitioner, I have worked closely with a wide range of laws and regulations that apply across the banking and investment sectors, as opposed to just specializing in one particular type of law or regulation. As a bank examiner, you get to use that knowledge and those skills to evaluate what others have built, and, if and when necessary, point out ways to improve them.”  However she would soon discover that there were obstacles in her path as she tried to do her job, and what was worse those obstacles were placed there by her supervisors, the very managers who were supposed to assist her in carrying out her duties – which was to put procedures in place that would help prevent another financial meltdown that could imperil the world economy.

She first noticed the lack of diligence on the part of FED regulators when she witnessed the Examiner embedded in Goldman Sachs make a statement that suggested the investment banking house was too big to be subjected to certain regulations they were charged with enforcing.  Shocked by the comment she later questioned her manager about it and suggested that this was a situation she should look into.  Instead of getting the enthusiastic green light she expected, the manager told her “you didn’t hear that.”  A regulator from the FDIC, which insures the assets of depositors against bank failures up to $250.000, was also present in the room and she asked him if he had heard the comment and he assured her that he did.

Since she was lured to the bank examiner’s job by their mandate to investigate and monitor the practices of those very financial institutions deemed “too big to fail,” which the government had just spent hundreds of millions of tax payer dollars bailing out of the red in order to prevent the total collapse of the banking system, which would have ushered in a depression worse than the 1930’s, she was appalled by the attitude of the embedded regulator at Goldman Sachs and her supervisor.

Segarra was to discover that even after the passage of Dodd-Frank, which the disloyal Republican opposition who controlled the House of Representatives refused to fully fund, many of the same old practices that had permitted the kinds of shady financial dealings which led to the collapse was still going on.  She would also come to realize that this problem was fostered by the close relationship between the regulators and the institutions they were supposed to regulate.  The FED’s well-intentioned but misguided decision to embed regulators in the institutions they were watching over had resulted in overly friendly relations with the top executives of those institutions.  And this led to a bending of the rules.

The extent of this cozy relationship had already been described in an independent 2009 report written by David Bind, a Columbia University professor of finance who had previously been a banker. Professor Professor Bind led an investigation into systemic problems that contributed to the financial crash; his report concluded that the regulators had failed to do their job of vigorously policing Wall Street to prevent them from engaging in risky or illegal activities.

Instead they had fallen into a condition that he calls “Regulatory Capture,” which resulted the bank  “Examiners” treating the banks like “a watch dog who licks and intruder in the face and plays catch rather than bark at him.”  Since the report had attracted so little attention Ms. Segarra does not seem to have been aware of it.  But based on her experience the professor got in right.

The evidence Ms. Segarra has compiled on her secretly recorded tapes amount to a smoking gun with finger prints and DNA samples on the handle.   It’s irrefutable!   We hear her supervisors try and discourage her from following leads regarding wrong doing at Goldman Sachs – some of it blatant.  For example she uncovered an acquisition in which Goldman Sachs was advising both sides for millions of dollars in fees, and the firm also had a large ownership share in one of the companies, in which her supervisor had a personal stake of several hundred thousand dollars.   Carmen Segarra correctly flagged this as an egregious case of conflict of interests.

This led her to interrogate executives at Goldman Sachs about their conflict of interest policy and found that they had none.  She thought this was incredulous, an outrage for a company that was conducting deals all over the world amounting to billions of dollars.  How could a financial behemoth with global reach not have a clearly defined conflict of interest policy?  If ever there was a situation that cried out for an investigation this was it!

Yet when she reported her discovery to her supervisor she was met with a lukewarm response bordering on indifference.  She was told that this was her personal “perception” of the situation and the FED arrived at conclusions on important matters by “consensus.”  She thought this was a ridiculous line of argument when the evidence of conflict of interests and the absence of any policy to deal with it was overwhelming.   When she said as much she was told by her supervisor that she was considered “arrogant” by higher ups in the agency, and that if she wanted to advance in her career in the agency she should learn to become a team player.  At which point Segarra asked outright if she was in danger of being fire for trying to do a good job.  The supervisor sidestepped the question but made it clear that she was on the road to nowhere.  And we hear it all loud and clear on the tapes!  Ms. Segarra was eventually fired, and she is suing the New York Fed for unjustified termination.

Now that the tapes are being made public there is a growing outcry for an investigation of how the FED operates and their relationship with Goldman Sachs. The outrage is reflected even in that voice of the Wall Street establishment, The Wall Street Journal, which has denounced the preferential treatment given to certain gigantic Wall Street firms by both the FED and the federal courts.  Carmen Segarra has opened a gigantic can of worms and provided us an unfettered view of what’s going down on The Street, which allows us to see the anatomy of a system that continues to produce  financial crises that devastate the middle and working classes while the investor class continues to get richer.

It is even more important that the federal regulators do their jobs honestly and efficiently now than it was before the crash, because if a major banking institution fails now the government has less authority to bail them out.  And as we are told in a New York Times article of September 30th 2014, it was the fall of Lehman Brothers that set the forces in motion that led to the world-wide financial panic.  What is clear in retrospect as we learn from the Time’s extensive interviews with major players in the government who decided not to rescue Lehman Brothers – Ben Barnake, Federal Reserve Chairman, Tim Geithner, President of the New York FED bank, and Hank Paulson, Treasury Secretary – is that they had the authority to rescue Lehman and made a political decision not to.

Having already received scathing criticism from the left and the “free market” crowd on the right for employing the resources of the US Treasury to rescue Bear Sterns, a private investment firm, Freddie Mac and Fannie Mae – two giant government backed mortgage companies, in 2008, when FED Chairman Ben Bernanke approached him about rescuing Lehman Brothers Paulson refused, telling him that he did not want to become known as “Mr. Bailout.”  However after the financial system crashed like falling  dominoes from forces set in motion by the fall of Lehman Brothers, Paulson did indeed become “Mr. Bailout.”  Hence it is frightening to learn from Ms. Segarra that it could all happen again because bank regulators are not doing their jobs.

That’s why we are blessed and highly favored to have an intrepid intellectual warrior and fearless defender of the working class and public interests such as Senator Elizabeth Warren, a former Harvard law professor – who is calling for a thorough investigation of the relationship between the FED, Goldman Sachs and other financial institutions.   It is one of the most important issues of our times and it should be thoroughly investigated.  Like Carmen Segarra, I too know honorable, law abiding people who were wiped out by the Bush Crash, including my sister Melba, a career educator and as fine a citizen as ever lived in America, whose life savings were ravaged!

Senator Elizabeth Warren

Elizabeth Warren

So I not only support Senator Warren’s call for a congressional investigation, I think she should chair it.  This would be a historical irony and poetic justice for those who torpedoed her chances of heading the regulatory agency she designed to regulate Wall Street bankers, now she’s baaaaack!  And she has returned in an even more powerful incarnation; at least as a government regulator the reactionary Republicans in Congress would have exercised some authority over her; but as the Senator from Massachusetts they have none!

We should also make this an election issue.  Let those who are opposed to an investigation into the dirty dealings of the avaricious plutocrats, and their unholy alliance with government shills, go on record with their opposition.  I believe their ranks will be thin!  Furthermore I think we should demand that President Obama appoint a special prosecutor under the auspices of a Department of Justice headed by a new Attorney General named Kamala Harris, the brilliant, beautiful, energetic Attorney General of California.

 

Kamala Harris

kamala-harris-45th-naacp-image-awards-01

Hopefully the next US Attorney General

She would be the ideal Attorney General to oversee such a historic investigation because along with Bo Biden, the Delaware AG, Ms. Harris has been a leading figure in investigating and prosecuting financial institutions whose wrong doing led to the Bush crash that caused so many Americans to lose their homes and life’s savings.  The lead investigator in this case would be Carmen Segarra and the Special Prosecutor would be former New York Governor Elliot Spitzer who was death on the Wall Street crowd when he was the New York AG.  Nobody knows those scoundrels better and he is a ruthless prosecutor.  This is my dream team….are you listening Chilly B?

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To Hear Carmen Segarra’s Secret Tapes Click on the link Below

Playthell G. Benjamin

New York, New York

October 1, 2014