Looming Economic Realities

Conditions show weakness, not improvement. Soft-land enthusiasts face rude awakening challenges. Later in 2012 and especially 2013, expect tougher times to reshape their outlook. They're always notoriously behind the curve.

Bad policy begets bad results. Force-fed austerity promises hard times getting nasty. In fall 2007, residential housing's reversal shaped events going forward.

Real estate kept overvalued markets safe. For most US households, it's their main discretionary income source. Its trajectory went straight up for years. Doing so formed a classic bubble. Eventually they all burst.

Real estate crashed and went straight down. Recovery is nowhere in sight. Hard times remain protracted. Main Street's been in Depression since 2008. Stability and economic growth are distant. Household and small business balance sheets contracted noticeably for over four years.

Belt-tightening reduced overall household debt to disposable income modestly from 135% in 2007 to 120% now. What happens going forward as economic weakness increases? Bipartisan support for $4 trillion in largely domestic cuts kicks in post-November when conditions can least tolerate them.

Obama administration policies have been spectacularly wrongheaded. Planned late year austerity when stimulus is needed will be disastrous. Inflation is much higher than reported. So is unemployment, growing poverty, and public pain.

At the same time, high food, energy, medical, transportation and other costs grow more unaffordable. Households with limited resources feel it most. 

Home prices haven't stabilized. Meaningful job creation is moribund. Solutions for issues this important aren't addressed. Rhetoric substitutes for sound policy.

Expect more wars instead of ending current ones. At the same time, homeland needs go begging. Europe's sovereign debt and banking crisis looms ominous. Standards of living in Western countries keep declining. No end of hardships continue.

China's property market began deflating. It's got a long way down to go. Its economy may prove much weaker than predicted. It has major unresolved problems.

Economic softness spread from Europe and America to Asia and Latin America. Chinese manufacturing is contracting. So is Brazil's.

Despite healthy corporate balance sheets, median OECD country public and private sector debt exceeds 400% of GDP. The OECD government debt to GDP ratio exceeds 100% for the first time post-WW II.

Unwinding excess will take years. Consumer spending will suffer. So will economic growth. Bad policies exacerbate hard times. Public pain generates instability. Strikes and angry protests continue. They'll grow and spread.

Boil over threatens. People take so much, then react disruptively. It's been ongoing for years but will intensify. Historically, political turmoil follows secular economic peaks. The harder and more protracted the fall, the more disorderly the reaction. 

Ahead expect the greatest in decades. Perhaps the most disruptive in modern times. 

Protracted reversals follow extreme excess. This one has a long way to go. Bad policy extends the timeframe. Imperial plans increase disruptiveness. Resources go for warmaking, not domestic needs. Greater suffering follows. The wild card is how much will people take before exploding. 

Day of reckoning time may be 2013. European governments toppled like tenpins. Obama or Romney in America hardly matters. Their agendas are similar on issues mattering most. 

Both support militarism, permanent wars, imperial dominance, corporate needs above public ones, painful austerity, and stiff crackdowns on resisters. Going forward, things look grim. Households least able to cope suffer most.

Key indicators point south. The Baltic Dry index historically indicates global economic activity. In May, it slumped about 10%. Future prospects look uncertain or troubled. Only about 20% of companies ventured outlooks. Of those, over half turned negative.

Headwinds overall are stiff. Durable goods orders show weakness. So does contracting production. New orders are down three consecutive months. Unfilled ones plunged. So did delivery time. Inventories hit a two month low. Prices paid collapsed to 5 from 22.5. It reflected the lowest read since July 2009.

Prices received also swung from 9.4 to -4.5, the lowest since last summer. Employment posted the largest monthly decline since May 2006. The workweek declined. Capex spending expectations hit their lowest level since September 2009.

Hiring shows no signs of recovering. Leading indicators sagged. The coincident to lagging ratio declined. It was down three of the past four months. The ratio is known for "leading the leader." It confirms likely downward GDP revisions. Going forward things look grim. 

In Europe they look worse. Greece is virtually bankrupt. Spain's economy is imploding. Retail sales plunged 9.8% year-over-year. They declined 22 consecutive months. The past year's result is the sharpest drop on record. 

What's implied going forward looks ominous. Spain's central bank governor Miguel Ordonez resigned. Word is he was forced out after serving six years. Eurozone economic confidence overall is down. 

So is US consumer confidence. During expansions, the historical average is 102. In recessions, it's 78. The latest read was 64.9, way below the norm. Employment was its grimmest part. It reflects people saying jobs are hard to get.

Financial advisor Martin Weiss believes "a new financial megashock" could happen any time. Potentially it looms greater than 2008 troubles. 

Market paralysis could follow. Trading could be frozen in "critical debt instruments such as bank CDs, commercial paper and even" sovereign debt.

Failures like Fannie Mae, Freddie Mac, AIG, Lehman Bros., Bear Stearns, and others could repeat. Potentially they could be worse. Radical government measures could be imposed. If similar to earlier ones, they won't work.

"The next big megashock is both quite predictable and virtually unstoppable!"

Analysts paying attention understand. Others suspect the worst. Europe is cratering in crisis. Media reports understate the severity. Sovereign debt is dangerously high. The world is awash in debt. Major banks are insolvent. Bailouts follow earlier ones.

Instead of confronting problems responsibly, policy makers keep repeating past mistakes.

An "explosive combination of extreme danger (and) complacency" exists. Current risks exceed 2008. Then, finance capital was troubled. "Today, entire nations are on the brink." Weakness shows up in New York, London, across Europe, and spreads globally.

In 2007, America's federal deficit was $161 billion. Currently, it exceeds $1.3 trillion.

In 2008, most troubled banking giants were American ones. Some still are like JPMorgan Chase and Bank of America. 

Today, European megabanks face serious problems. They include Banco Santander, Barclays, Crédit Agricole, Lloyds Bank, Royal Bank of Scotland, Société Générale, UniCredit SpA, and others.

Assets of European banking giants exceed those of all US commercial banks combined.

In 2008, governments had considerable firepower to confront crisis conditions. Today, everything tried brings "diminishing returns."

In 2008, governments met little public resistance. Currently, angry protests continue across Europe and America.

Before 2008, central banks "largely restrict(ed) their role to traditional" practices. Radical departure followed to no avail. Massive money creation brought no relief. Printing more won't help unless directed for economic growth, not banker balance sheets. 

Political rhetoric signals growth. Policies suggest otherwise.

Greece is most troubled of all. Sovereign debt costs above 7% signal danger. Athens pays four times that much. The more it borrows, the worse off it gets. Its debt is virtually worthless. Default is almost certain. Mass withdrawals intensify current problems.

Spain is nearly as troubled. Its economy exceeds Greece's fivefold. Greece is a side-show by comparison. Spain's Prime Minister Mariano Rajoy said "there will be no Spanish banking rescue." With over $1 trillion in deposits, enough resources don't exist to cover runs if they spread and grow.

At 510 basis points, Spanish/German 10-year yield spreads reached the highest level since the euro's inception.

At the same time, unemployment approaches 25%. For youths, it's 50% and worsening. Confidence in its banks cratered. Earlier in May, Bankia, Spain's fourth largest bank, was nationalized. Credit downgrades hit the entire sector. Expect other bank rescues to follow.

Austerity across Europe is still policy. Based on election results, support for it collapsed. Massive money printing won't help.

Progressive Radio News Hour regular Bob Chapman predicts it. G8 summit leaders discussed it. Fed QE III looks likely. Continued propping up of troubled banks is planned. At issue is for how long. It solved nothing earlier and won't now.

"ECB will take junk bonds and other vastly over-priced assets as collateral for loans to the Spanish, Greek and other European banks. This will offset an additional estimated $500 billion in new write-offs by bondholders of Greek debt."

If Greece leaves the euro, "contagion will spread overnight to Spain, Portugal, Ireland, and perhaps Italy."

Inflationary countermeasures are planned. Obama hopes to hold on through election. Fed and ECB assets "fall far short" of an estimated $4 trillion or more euro liability private banks face. 

Four and a half years into crisis conditions, they're worse off than ever. Recapitalizations solved nothing. They bought time for a greater day of reckoning.

At the same time, bank runs are hitting troubled EU economies. Greece noticeably is affected. Euro exit fears motivate people to transfer funds elsewhere. Spanish depositors are scared. They're doing the same thing.

Portugal, Ireland and Italy are vulnerable. Once outflows start, stopping them isn't easy. Potential runs in other countries could follow. It's similar to selling weak sovereign debt for safe havens.

Bank runs are especially pernicious. They can happen quickly and spread. The potential for financial crisis grows. Is it happening again? Only the fullness of time will tell.

In America, insider selling surged. Corporate stock buybacks fell to a three year low. None of this signals confidence.

In early May, JP Morgan's trading loss sent shock waves across Wall Street. The $2 billion announced reflects the tip of the iceberg. Expect much more to come. Other banks face similar risks.

JP Morgan was considered Wall Street's most stable bank. Now it's troubled. At issue is speculative excess. It's done because banking giants are considered too big to fail. The Bernanke put assures taxpayer bailouts if needed.

At the same time, lending across Europe contracted sharply. Doing so exacerbates recession conditions. Eurozone banks are deeply troubled. So are Britain's. 

America's economy has a 90% correlation with Europe. What affects the continent spreads contagion to US banks. Bank of America and Wells Fargo have serious problems. JP Morgan's losses show none of the giants are immune, and what hits them also harms smaller banks. They're more on their own. Many fail.

Troubled conditions now replicate 2008. Speculative excess continues unabated. Big bets gone bad trigger crises. JP Morgan sent a shock waves across Wall Street and Europe. Free money bailouts solved nothing. European banks are especially weak.

Responsible solutions aren't taken. Huge bad asset amounts infest bank balance sheets. Fiscal austerity combined with monetary madness makes economic conditions worse. 

Europe and America exacerbate each other's problems. Policy measures followed are similar. So are hard times getting harder.

Instead of nationalizing insolvent banks worth saving, letting others fail, and restructuring responsibly, past errors repeat with predictable results. At best they buy time. Eventually it runs out. 

The moment of truth may hit harder than anything felt so far. Ordinary people suffer most. What happened earlier may be prelude to grimmer than ever times ahead.

Wisconsin's Recall Election

Winter 2011 witnessed an epic worker rights battle. Wisconsin public workers challenged Republican Governor Scott Walker.

He won round one. Workers get another chance. On June 5, they'll choose between him and Milwaukee Mayor Tom Barrett. Neither offers much choice. More on that below. Lieutenant governor and four senate seats are also up for grabs.

On June 1, the Milwaukee Journal Sentinel headlined "Barrett, Walker bring out political stars," saying:

Barrett lured Bill Clinton. Republican party spokesman Ben Sparks asked why him and not Obama. Walker countered with South Carolina Governor Nikki Haley, "a rising star of the Republican Party."

In late 2011 and early 2012, around one million recall signatures were collected. It was nearly double the required amount.

Walker represents union-busting and eroding collective bargaining rights en route to ending them altogether. He also imposed draconian wage and benefit cuts on public workers.

Both candidates support monied, not popular interests. Wisconsin Democrats aren't much better choices than Republicans. Regardless of who wins on Tuesday, labor rights lose. Wisconsin reflects what's happening across America. It's bad and getting worse.

Bipartisan force-fed austerity means lower living standards, increased layoffs, fewer jobs, mostly low pay/poor benefit part-time ones, and private workers harmed like public ones.

In February and March 2011, Wisconsin public workers and students protested daily against Walker's so-called "Budget Repair Bill."

It was a corporate coup d'etat. It eroded state, county and municipal worker collective bargaining rights. It forced them to pay thousands of dollars in health and pension benefit costs. It pitted workers against politicians allied with corporate bosses. They battled on their own without union help.

It was the most impressive worker struggle in decades. It didn't end when Walker's budget passed. It won't on Tuesday. Wisconsin public workers are energized. They won't yield easily. They haven't so far. They face long odds but won't quit.

On March 10, 2011, Wisconsin's legislature passed Walker's Budget Repair Bill (Wisconsin Act 10). On March 11, he signed it into law.

The same day, Dane County Executive Kathleen Falk sued to stop what she called unconstitutional.

On March 18, Dane County Circuit Court Judge Maryann Sumi issued a temporary restraining order. She said passage violated Wisconsin's Open Meetings Law.

Attorney General Steven Means appealed. On March 29, Sumi extended her restraining order.

On June 14, Wisconsin's Supreme Court overruled her. Voting 4 - 3, the majority said it "exceeded its jurisdiction, invaded the legislature's constitutional powers....and erred in enjoining the publication and further implementation of the act."

Chief Justice Shirley Abrahamson disagreed. In a stinging dissent, she rebuked her colleagues. She said:

The Court unjustifiably "reached a predetermined conclusion not based on the fact(s) and the law, which undermines the majority's ultimate decision."

Majority justices "make their own findings of fact, mischaracterize the parties' arguments, misinterpret statutes, minimize (if not eliminate) Wisconsin constitutional guarantees, and misstate case law, appearing to silently overrule case law dating back to at least 1891."

Nonetheless, pro-business, anti-worker rights triumphed. In March 2011, a protracted Senate battle ended when hard-line Republicans violated Wisconsin's open meetings law. It requires 24 hours prior notice for special sessions unless giving it is impossible or impractical.

Workers never had a chance. Walker got his way. Things won't change no matter who wins on Tuesday. It's the same across America at the federal, state and local levels.

Walker's budget bill prohibits workers from bargaining on benefits and working conditions. It provides limited negotiation rights on wages. It also ended automatic union dues deductions. Payments became voluntary. Unions must vote annually to be recertified as bargaining representatives. 

Democrats promised to restore collective bargaining rights, but won't reinstate former health and benefit rights. Both sides support austerity and other pro-business priorities.

In 2010, Barrett lost to Walker. He supports wage and benefit cuts. So do Democrat party bosses and corrupt union officials. Walker's predecessor, Jim Doyle, imposed the most draconian cuts in Wisconsin history. Workers were hardest hit. Union heads supported him.

Backing Democrats, they challenged Act 10 in federal court. On March 30, 2012, US District Court Judge William Conley ruled portions of the measure requiring mandatory recertification votes and restrictions on union dues check offs unconstitutional.

At the same time, he upheld limited collective bargaining rights on wages.

On April 5, Walker signed Senate Bill 202. It reversed Wisconsin's Equal Pay for Equal Work Act (Act 20). 

According to the Wisconsin Alliance for Women's Health, (WAWH) Act 20 sought, "to secure equal pay for the thousands of working families who are denied fair pay due to wage discrimination based on race and gender."

SB 202 removed Act 20 compensatory and punitive damage violations.

It's more than about women. It's also about affording minorities, the disabled, and other marginalized groups equal pay rights. Walker called the law a "gravy train" for trial lawyers. WAWH's Sara Finger called SB 202 a "demoralizing attack on women's rights, health, and well-being."

On June 5, Wisconsin voters hope their say will make a difference. Reality suggests otherwise. Two new polls reflect a dead heat. One has Walker and Barrett even with each getting 49% support. The other has Walker leading 50 - 48%. Within the margin of error, it's too close to call.

Walker's campaign war chest outspent Barrett around 25 to 1. Billionaire Koch brothers and other corporate bosses support him.

In a late May debate, Barrett didn't contest Walker's anti-worker laws. Throughout the campaign he hardly mentioned them. The issue at most was secondary. Worker rights hardly matter.

As Milwaukee mayor, Barrett used Act 10 provisions to cut city worker benefits. Union bosses concurred. Disingenuously they claim Barrett's on their side. 

Union officials want their own privileges protected. Rank and file worker rights don't matter. Lip service only supports them. Barrett differs from Walker mainly by collaborating with unions for his own benefit.

Democrat National Committee (DNC) chairwoman Debbie Wasserman said "(t)here aren't going to be any (national) repercussions" if Walker wins.

Earlier she claimed his "attacks on workers' and women's rights are the definition of a fireable offense." She added that recalling him would send "a powerful message to the far-right extremists."

Wisconsin Democrats are upset by lack of DNC financial support. Not helping expresses tacit defeat. When economic conditions are dire, losing anywhere has national implications.

Hoped for change never arrives. Voters never learn until too late. Barrett or Walker winning hardly matters. 

Few differences separate Obama and Romney. None on issues mattering most. Whoever wins, voters lose. So will Wisconsinites and ordinary people across America. 

Expect nothing post-election to change. Ordinary people lose out across America, Europe and elsewhere. Elections won't correct injustices. Addressing them matters most. Radicalized activism has the best chance.

Crisis Economic Conditions

Global economic data signal trouble. Headlines reflect worsening conditions.

The Financial Times said America's dismal jobs report and world economic weakness raise "fears of a sharp global slowdown" or worse.

According to the London Guardian, Britain and Euroland face a "deeper recession after figures showed manufacturing output slumped at its fastest" rate in three years.

The Daily Telegraph said oil hit a 16th month low below $100 a barrel. At Friday's close, WTI crude stood at $83.26. Brent slumped to $98.63. Declining prices signal weakness.

The London Independent worried about "worldwide panic" as Dow prices plunged 275 points. It was the worst single day's performance since last year.

The Daily Mail commented on the "appalling state" of the world economy.

The Wall Street Journal groaned about the "grim jobs data." It wasn't the only sign of weakness. Separate Friday reports showed other troublesome signs. Expect economic conditions to keep heading south.

New York Times columnist Floyd Norris said Friday's jobs report "was worse than almost anyone expected."

"There is absolutely no prospect" for positive change soon. With Europe's recession deepening, America won't escape the fallout. When either area sneezes, the other catches cold, and it spreads.

Europe faces serious economic trouble. Plunging euro valuations reflect it. A crisis of confidence exists. 

Bankia's insolvency was Spain's largest ever bank collapse. Other Spanish banks are troubled. So are Italian ones. Intesa Sanpaolo shares slumped to a 15-year low. UniCredit fell to almost generation ago valuations. 

Europe's entire banking system risks collapse. Greek and Spanish banks face panic withdrawals. In April, Spanish retail sales plunged 9.8%. It was the sharpest monthly drop on record.

Chinese manufacturing declined for the tenth time in eleven months. Bank lending missed government targets by about $200 billion. 

Brazil shows increasing weakness. Q I figures barely eked out a +0.2 print.  India's doing no better. Its year-over-year Q I GDP growth hit a nine-year low. Q I, in fact, contracted.

South Korea's heading south. So is Australia. A front page Wall Street Journal article headlined "Asia Strains under Euro Crisis." Another back page one discussed African nations feeling the pinch.

UK manufacturing hit its lowest level since May 2009. In May, its PMI slumped 4.3 points to 45.9. It showed contraction. It was the sharpest single month decline since November 2008.

In May, commodity prices had their worst decline in four years. Their five consecutive week slump was the worst performance in five yeas.

US and Europe face rising unemployment. Official Greek and Spanish rates approach 25%. For youths, it's about 50%. Across Euroland it's 11% and rising. 

Shadowstats has US unemployment at nearly 23%, inflation at 6%, GDP at minus 2%, and money supply growth declining.

The IMF is considering bailing out Spain. At issue is how given its deepening trouble. Its impossible math shows a 9% fiscal deficit, no nominal growth, and 6.67% 10-year rates at Friday's closing prices.

A June 1 AP report asked how Spain's "government can pay for a bailout...?" Conditions across Europe are so troubled that the Wall Street Journal said "multinational companies are rehearsing for any number of contingencies," and they all look bad.

Independent economists call the euro a failed experiment. Some admitted it years ago. Eventual dissolution looks certain. The longer the can's kicked down the road, the harder breaking up will be.

America's May jobs report was awful. Headline U-3 numbers reported +69K. Shadowstats reported 20K. Consensus predicted +150K. March and April downward revisions totaled 49K. Expect future reports to drop them further. Full-time jobs are evaporating like water in summer heat.

The sensitive goods-producing sector dropped 15K. It was the first decline in nine months. More ahead looks certain. Long-term unemployment reached 5.4 million. It rose 300,000 over April. Duration approaches 40 weeks. 

These numbers and others reflect Depression conditions. Policies aren't addressing them. Obama talks but doesn't act. In an election year, it's unprecedented. If conditions worsen as looks likely, he may be another one-term president. Current polls show him either even with Romney or behind.

His so-called growth package includes corporate handouts, more benefits for rich elites, and deregulation when opposite measures are needed. 

His jobs program is smoke and mirrors duplicity combined with more for corporate giants at the expense of troubled households. Trickle down failed years ago. 

Nonetheless, Obamanomics feature it. Since taking office, he's done virtually nothing to create jobs and improve living standards for millions of Americans needing help. 

He waged ruthless class war from day one. Wealth extremes are unprecedented. Corporate profits come at the expense of public pain. Expect much worse ahead.

Voter sentiment mostly reflects pocket book issues. Given current dire conditions, it's certainly true now. Declining consumer confidence reflects it. So do unemployment and poverty levels.

Economic activity is clearly heading south. In May, incomes dropped 0.2%. They've fallen for two of the past three months. Chicago's PMI plunged from April's 56.2 to 52.7. Consensus expected 56.8. It was the worse read since September 2009. It matched December 2007 when recession conditions began.

PMI components were also abysmal. Order backlogs fell from 56.8 to 46.3. In the past 30 years, only three declines matched May. Other regional manufacturing indexes also showed softness.

Unprecedented low Treasury yields signal trouble. TIPs sunk below 0%. So did German 2-year notes. Its 10-year bunds yield 1.1641%. Inflation adjusted shows negative returns. Ten-year US Treasuries stand at 1.46%. They're also negative when inflation adjusted.

Five months remain until America's election. Hope springs eternal every time. After Obama won in November 2008, Chicago erupted like New Year's eve. Hangover conditions followed. Despair deepened them.

Nothing ahead shows promise. Wrongheaded policies assure it. As 2013 approaches, grim conditions are worsening. Relief is nowhere in sight. 

Whichever party wins in November, things won't change. It's hard imagining how much longer suffering millions will tolerate it. Sooner or later they're bound to erupt. It's their only chance.

A Final Comment

Economist Jack Rasmus provides incisive economic analysis. He appears regularly on the Progressive Radio News Hour (PRNH).

He called last winter's jobs numbers "grossly overestimated." Statistical adjustments were manipulated and questionable. Eventually truths come out. Today's reality shows "stagnant jobs growth" and "economic relapse."

Housing remains in Depression. So is overall construction. Obama's efforts to stimulate exports "produced a mere dribble of new jobs." Most are part-time/low pay/low benefit ones.

State and local governments keep laying off thousands of employees monthly. Hundreds of thousands of workers exit the labor force monthly for want of job opportunities. 

Bank lending to small businesses is moribund. Median household incomes are declining while food, healthcare, energy, education, and other costs rise.

Personal consumption is "stumbling along" at best. Rasmus comments often on air how mainstream economists virtually always get it wrong. 

They're behind the curve. They're sanguine when caution and concerns are warranted. They promote illusory economic growth and prosperity. They ignore reality independent analysts stress.

Last fall, Rasmus predicted a sharply slowing global economy in 2012, a troubled Eurozone, and hard landing prospects for China, Brazil and elsewhere. America will feel the fallout, he said.

Expect worse conditions ahead. Before yearend, Democrat and Republican leaders will implement $2 - 4 trillion spending cuts plus another $2.2 trillion scheduled to begin in January.

They'll call it deficit reduction, not austerity. It'll hit America's economy like a hammer when conditions can least tolerate it. The effect on GDP will be dramatic. 

If all agreed on cuts kick in, it will have up to a 4% negative impact on national output. Imagine how much more intense today's crisis will become.

Israeli Commanders Face Trial in Turkish Court

A previous article discussed arrest warrants issued for four ex-IDF senior officers. 

They're accused of ordering the May 31, 2010 Mavi Marmara massacre. Israeli commandos attacked the ship with orders to assassinate targeted victims.

Nine Turkish nationals were killed. Dozens more were wounded. Everyone on board was terrorized. Nonviolent humanitarian activists were attacked in international waters. They were trying to deliver humanitarian aid to Gaza.

Turkish/Israeli relations became strained. Ankara demanded an apology and compensation for families of victims. 

Israel never says it's sorry. Prime Minister Recep Tayyip Erdogan warned diplomatic relations might be severed unless Israel apologized, consented to an independent international investigation, and ended its Gaza siege.

Israel refused and stonewalled. Frayed relations followed. In fact, they began deteriorating earlier despite years of close military, economic, political, technological, cultural, academic, and practical ties. 

After the second Intifada erupted in September 2000, then Prime Minister Bulent Ecevit criticized Israel harshly. The 2003 Iraq caused friction. Each country differed on policy.

Israel wanted regime change. Turkey urged status quo. Ankara opposed partitioning Iraq and establishing a de facto Kurdistan on its border.

Israel's preemptive 2006 Lebanon heightened more tensions. So did Cast Lead. Gaza's siege has been a festering issue since imposed in mid-2006.

Prime Minister Erdogan bluntly accuses Israel of repeated crimes of war and against humanity. He said Netanyahu's government threatens global peace.

At the 2009 World Economic Forum, he walked off the platform after a heated exchange with Israeli President Shimon Peres.

At issue also is jockeying for Middle East influence and dominance. Turkey wants to be an indispensable regional player. At the same time, it tries to balance East/West ties.

Months earlier, Foreign Minister Affairs Ahmet Davutoglu said:

"The new global order must be more inclusive and participatory....Turkey will be among those active and influential actors who sit around the table to solve problems rather than" let them fester.

Nonetheless, Turkish/Israeli tensions escalated. Ankara cancelled earlier joint military exercises. Mavi Marmara killings remain unresolved.

In late May, arrest warrants were issued for four ex-IDF commanders. They include Chief of Staff Gabi Ashkenazi, military intelligence head Amos Yadlin, naval commander Eliezer Marom, and air force intelligence head Avishai Levi.

On June 4, Today's Zaman headlined "First Mavi Marmara court hearing scheduled for November 6," saying:

Trial proceedings will begin. Istanbul Prosecutor Mehmet Akif Ekinci seeks 10 "consecutive life sentences." It's for nine deaths plus another victim still in coma.

Charges include voluntary manslaughter, attempted voluntary manslaughter, intentional injury, incitement to assault with a deadly weapon, robbery, abduction or confiscation of maritime vessels, property damage, false arrest, and mistreatment of prisoners.

"A court proceedings report accepted by the Istanbul 7th High Criminal Court says one copy of the indictment will be sent to the Israeli authorities after being translated into English." 

"The report also added that the court will also instruct the Istanbul Bar Directorate to appoint lawyers for the suspects."

Initial hearings will proceed from November 6 - 9. Weeks more will follow. Hundreds of complainants will be invited to testify.

Conclusions from an internal Turkish investigation accused Israel of "banditry," "piracy," and "state-sponsored terrorism."

Israel held its own inquiry. It whitewashed truth and absolved culpable commanders. Turkish investigators said they were "surprised, appalled and dismayed that the national inquiry process in Israel has resulted in the exoneration of the Israeli armed forces."

Israel's ambassador was expelled. Military agreements were suspended. Differences between the two nations remain unresolved. Prosecuting former Israeli commanders will heighten tensions further.

Defendants won't appear in court. Reports are they'll be arrested if enter Turkish territory. Proceedings will be held in absentia. Ankara's Foreign Minister, Ahmet Davutoglu expressed resolve to "defend the rights of Turkish citizens."

New York Times Fronts for Israel

On June 4, The NYT headlined, "Turkey Presses Case Against Israeli Officers in Raid," saying:

Turkey wants "to keep the issue in the spotlight as it presses Israel for an apology and compensation."

"The ship was part of a flotilla headed for Gaza in defiance of the naval blockade that Israel imposed on the territory."

Fact check

Under international law, Gaza's siege is illegal. As an occupying power, Fourth Geneva provisions are inviolable. Israel must protect residents it controls. Violating its obligations is an international crime.

Moreover, blockades are acts of war. They're defined as:

• surrounding a nation or objective with hostile forces;

• measures to isolate an enemy;

• encirclement and besieging; 

• preventing the passage in or out of supplies, military forces, or aid in time of or as an act of war; and

• an act of naval warfare to block access to an enemy's coastline and deny entry to all vessels and aircraft.

International water interdictions constitute piracy. Under Article 101 of the 1958 Geneva Convention on the High Seas and 1982 UN Convention on the Law of the Sea (UNCLOS), maritime piracy includes: 

"any illegal acts of violence or detention, or any act of depredation...against a ship, aircraft, persons or property in a place outside the jurisdiction of any State (and) any act of inciting or of intentionally facilitating (such) an act."

Free, unimpeded humanitarian relief can't be blocked. Even under conditions of armed conflict, the San Remo Manual on International Law Applicable to Armed Conflict at Sea (June 1994), states:

"If the civilian population of the blockaded territory is inadequately provided with food and other objects essential for its survival, the blockading party must provide for free passage of such foodstuffs and other essential supplies."

According to The Times, "(a) United Nations report concluded last September that Israel had been within its legal rights but had used excessive force in the action." Israel also claimed "its commandos acted in self-defense during the raid, opening fire to save their own lives after they encountered tough resistance on the ship's deck."

Fact check 

Israel's attack was premeditated. Activists on board were unarmed and nonviolent. In September 2010, the UN Human Rights Council’s fact-finding mission held Israel entirely culpable.

It called its assault brutal and disproportionate. Based on eye witness testimonies, forensic evidence, video footage, and other photographic material, it:

"concluded that a series of violations of international law, including international humanitarian and human rights law, were committed by the Israeli forces during the interception of the flotilla and during the detention of passengers in Israel prior to deportation."

"The preponderance of evidence from impeccable sources is far too overwhelming to come to a contrary opinion."

HRC criticized Israel's "outrageous attack on aid ships attempting to breach a blockade on the Gaza Strip."

It called doing so "piracy, (an) act of aggression, (a) brutal massacre, (an) act of terrorism, (a) war crime, (a) crime against humanity - unprovoked, unwarranted, atrocious, (and) brutal." 

"It described activists onboard as "peaceful, innocent, noble, unarmed, (and) defenseless."

The so-called UN report The Times mentioned whitewashed indisputable facts the Human Rights Council (HRC) and independent observers revealed.

Headed by former New Zealand Prime Minister Geoffrey Palmer, it included former Colombian President Alvaro Uribe. 

His resume reads like a police rap sheet. It includes corruption, scandal, links to his country's drug cartels, involvement with paramilitary death squads, ties to US imperialism, and other high crimes against humanity.

Including him on a human rights panel was the equivalent of a jury of serial killers impanelled to judge one of their own.

In response to Turkey's indictment, Netanyahu stood defiant, saying:

"I would like to say clearly to the soldiers and commanders of the Israel Defense Forces: the state of Israel will always stand beside you, wherever you are and in any situation. You defended us; we will protect you."

As head of state, Netanyahu controls Israel's military. Chain of command authority is similar to America's. Israel's Minister of Defense is the equivalent of Washington's Secretary of Defense. Military commanders report to them. They serve under chief executives.

In both countries, heads of state appoint top officials. Netanuahu bears full responsibility for Israeli crimes of war and against humanity. They include Mavi Marmara assassinations. 

Indicting him for high crimes is warranted. Perhaps testimonies in November will cite him. Hopefully complainants will demand prosecuting him and others in his chain of command. 

At issue is accountability under inviolable international law. No one stands above it, especially heads of state empowered to enforce it.

Heated Anti-Assad Rhetoric Promotes War

by Stephen Lendman

Increasingly war looks likely. Earlier Obama said "the Assad regime must come to an end."

In early June, White House press secretary Jay Carney said "bloody sectarian war will be diminished if Assad removes himself from power or is no longer in power."

"It is essential that the world community come together and unify to pressure Assad and isolate Assad and help precipitate a situation where that political transition can take place."

Hillary Clinton accused Russia of keeping Assad in power. Putin faces heavy pressure to bow to Western demands. Will he yield or hold firm?

Moscow signed a Security Council statement condemning the Houla massacre. Unlike Washington, Western partners, and regional allies, it points fingers both ways. 

Along with China and Cuba, it rejected the Human Rights Council's (HRC) decision to condemn Syria for Houla killings. It called doing it "imbalanced and biased." More on that below.

Moscow also repudiates regime change. Putin believes national sovereignty is inviolable. He opposes intervention and war. He rejects Libya 2.0. He supports ending conflict and restoring peace. Succeeding is another matter. 

On June 5, Putin arrived in Beijing for an official state visit. Discussions will focus on mutual economic and geopolitical interests and concerns.

Chinese Foreign Ministry spokesman Liu Weimin said both nations oppose intervention in Syria or plans for regime change by force. They support dialogue for conflict resolution.

On June 4, Assad addressed the People's Assembly. He minced no words for good reason. Since last year, he's been wrongly blamed for Western-instigated violence. It continues daily. 

Pro-Assad loyalists, other civilians, and security forces are targeted and killed in cold blood. Houla was the most extreme incident. 

An Islamist group called Jabhat al-Nusra (Al-Nusra Front) claimed responsibility for May Damascus bombings. Dozens were killed, many others wounded. The group also said it killed 13 civilians in Deir Ezzor province last week. They were shot at close range in the head. Their hands were tied behind their backs.

Many other incidents claimed smaller tolls. Body counts mount. Syrians are terrorized. Most blame outside forces, not their government.

Washington, key NATO partners, and regional allies bear full responsibility. Out-of-control violence won't stop. They won't let it. Death and destruction continues.

Fabricated reports and lies blame Assad. On June 4, he responded, saying:

"Since the early days of this crisis, we announced a number of clear political steps to enhance the development process through popular participation in order to undercut all those who tried to hide under slogans of reform and make use of the events for unpatriotic and dishonourable objectives."

"Despite the denials of these achievements in the political sphere on the part of foreign and domestic powers....we have never stopped carrying out what we announced and what we started." 

"Laws have been passed, local administration elections have been held, and later on there was a referendum on the constitution in response to those attempts."

"The international role in what is happening is already well-known not only for decades, but for centuries past. And I don't think it's going to change in the foreseeable future. Colonialism is still colonialism. It only changed in terms of methods and ways of attack."

"The political process is moving forward, but terrorism is growing and hasn't subsided. The laws which have been passed since the beginning of the crisis haven't made an impact on terrorism and made it subside."

"Terrorists are concerned neither with reform nor with dialogue. They are criminals who have set themselves a task....They will never stop unless we stop them."

"What we are facing is a project of internal sedition aiming at the destruction of the homeland. The instrument of this sedition is terrorism."

"We are now facing a real war waged from outside. And dealing with a war is different from dealing with an internal conflict or dealing with Syrian parties. This point should be very clear."

"Terrorism is not related to the political process. It targets all the homeland, its institutions and its parties."

"Today we are defending a cause and a homeland. We are not doing what we are doing because we love blood. A battle has been forced on us, and the result was the blood which has been spilled. "

"Last week, after the atrocious al-Houla massacre, they accused the armed forces of committing it. In the beginning they said that it is the result of artillery and tank shelling, but later they retreated (and accused) pro-government militias...."

"What happened in al-Houla, al-Qazzaz, al-Midan, Deir Ezzour, Aleppo, and many other places in Syria, and which we described as brutal, heinous and ugly massacres, is in real fact very difficult to describe. Even beasts do not do such things, particularly what happened in al-Houla."

"With our will we shall overcome this crisis, with our unity we shall vanquish our enemies, and all the noise will not be able to suppress the voice of right."

In January, Assad spoke at Damascus University, saying:

"External conspiring is no longer a secret because what is being plotted in the pal talk rooms has started to be clearly revealed before the eyes of the people."

"It is not possible anymore to deceive others except for those who do not want to listen or see; as the tears shed by the dealers of freedom and democracy for our own victims can no longer conceal the role they played in the bloodshed which they tried to use for their own purposes."

"Here comes the foreign role after they failed in all attempts....What is taking place in Syria is part of what has been planned for the region for tens of years, as the dream of partition is still haunting the grandchildren of Sykes–Picot. But today their dream turns into a nightmare...."

"This is not a revolution. Can a revolutionary work for the enemy – a revolutionary and a traitor at the same time? This is impossible."

"The question is a race between the terrorists and reform. Terrorism and those standing behind it don’t want reform and want to reach a stage where we say there is no time for reform. Let’s deal with terrorism."

"And glory to our proud people who reject defeat in the age of collapse and who say to their enemies, 'never will we be defeated!' "

Assad implemented important reforms. More remains to be done. Justifiable criticisms are warranted. Blaming him for Western-instigated violence is unconscionable. 

Fingers pointing the right way name Washington. Long-planned regime change plans were implemented. Thousands of Syrians died. Multiple rounds of sanctions harm ordinary people most. Western-generated terror bears full responsibility for crimes of war and against humanity.

On June 1, the UN Human Rights Council (HRC) concluded its special session on Syria. Focus was on Houla killings. Truth and full disclosure were suppressed. Fingers pointed the wrong way. Doing so mocked human rights, justice, and peace.

A final resolution was adopted. Forty-one voted yes. Russia, China and Cuba rejected one-way responsibility. Two nations abstained.

Harsh language blamed Assad. Perhaps Washington speech writers wrote it. Killer gangs weren't mentioned. It condemned the Houla massacre, "ongoing arbitrary detentions, hindered access for the media, and restrictions of the right to peaceful assembly."

It accused Assad of failing "to protect and promote the rights of all Syrians, including through systematic and repeated violations of human rights."

It called for holding those responsible accountable. It ignored foreign mercenaries terrorizing people for months, external funding and heavy weapons they're supplied, and covert Western special forces choosing targets and directing them.

It said nothing about Turkish safe zones. It implied self-defense is criminal. As head of state, Assad is obligated to confront killer gangs responsibly. Leaders everywhere would do the same thing.

It deplored the "deteriorating situation of human rights." It shamelessly assigned blame. It condemned "the wanton killing of civilians...."

It said Houla deaths involved "shooting at close range (and) severe physical abuse by pro-regime elements and a series of Government artillery and tank shellings of a residential neighborhood...."

Independent eye witness and survivor testimonies refuted HRC accusations. Pro-Assad loyalists were targeted. External death squads were responsible. Journalist Marat Musin called them "bandits and mercenaries." He provided credible firsthand information.

He called artillery and tank fire "a bad joke." Evidence was absent. Buildings weren't damaged. Craters weren't found. Assad's forces were miles away. 

The Human Rights Council mocked its mandate. It blamed victims, not perpetrators. Conflict resolution remains distant. War looms likely. Nations blaming Assad and HRC officials bear responsibility if it's launched.

A Final Comment

On June 2, DebkaFile (DF) headlined "Turkey ditches Syrian rebels. Will Israel attack Hizballah's Scuds?" saying:

"In an astonishing about face, Turkey has just turned away from its 14-month support for the anti-Assad revolt alongside the West and made common cause with Russia, i.e. Bashar Assad."

DF accuracy is mixed. It's connected to Israel's Mossad. Turkey just indicted four ex-senior Israeli commanders for Mavi Marmara killings. 

Maybe DF’s report is retribution. Separating facts from propaganda is challenging. The above headline is astonishing. Credible evidence wasn't presented.

DF also said Hezbollah scuds are being transferred from Syria to Lebanon. At issue is doing it safely, it said.

"One plan is to enlist the Palestinian Jihad Islami in the Gaza Strip and exploit a clash over the Scuds’ transfer as a trigger for an all round military offensive against Israel." 

"It would be timed for the moment the Western-Arab intervention in Syria against President Assad crosses the line between covert and overt military action and begins an operation to establish safe zones as bases for rebel operation."

"Washington, London and Paris began rushing forward contingency plans for this eventuality upon discovering that Ankara had secretly notified leaders of the rebel Free Syrian Army Thursday, May 31, that it had withdrawn permission for them to launch operations against the Assad regime from Turkish soil."

DF accused Turkey of "prop(ping up) Assad at the very moment his regime" might be close to buckling.

Foreign Minister Ahmet Davutoglu was quoted on Turkish NTV, saying:

"We have never advised either the Syrian National Council or the Syrian administration to conduct an armed fight, and we will never do so." 

"The Syrian people will be the driving force that eventually topples the Syrian regime. Assad will leave as a result of the people’s will."

"For the time being," said DF, "the pro-Assad Moscow-Tehran front, bolstered now by Ankara, has got the better of Western and Arab polices for Syria."

DF also accused Hezbollah of targeting Israel with scuds. If Obama's reluctant to respond, Assad, Hezbollah and Tehran "will be awarded a winning hand - and not only in Syria."

DF's report promotes war. Britain's Daily Star cited unnamed Whitehall sources saying "SAS troops and MI6 are in the country ready to help rebels if civil war breaks out as expected this weekend."

UK and US special forces, as well as CIA and MI6 operatives have operated covertly in Syria for months. They actively supplied insurgents with weapons, munitions, equipment, funding, training, and direction. Whether something more aggressive is imminent isn't known. 

America wants Assad replaced with a pro-Western puppet. Israel wants a regional rival removed. DF is a complicit attack dog. With or without it, war looks likely.

Queen Elizabeth:21st centuries Queen of thieves.

Queen Elizabeth:21st centuries Queen of thieves.

The British royal family is a menace to Democracy and is a representation oof cavalier disregard for liberal and democratic values.The Royal family currently has a debilitating effect on the general society.
  Queen Elizabeth is the British head of state and the royal family is what the British Prime ministers bow and curtsy to with rembling limbs.British politicians and the British media have for decades preached Democracy and urged the masses of other countries to fight for and defend Democracy,whilst they do this,they have failed to reflect on the fact that the British constitutional arrangement has created a system of government which is a direct opposite of the democratic values being preached by the UK media,past British Pm's,including the current prime Minister David William Cameron.

  The British monarchy is primitive in intent and practices,and greatly undemocratic in value.Head of the monarchy Queen Elizabeth is currently Queen of  Jamaica,Barbados,The Bahamas,Grenada,Belize,SVG,Solomon Islands,T and saint Lucia.
The British overseas territories still extends to every geographic region of the world,with the carribean overseas territories in North America,The Falklands,Saint Helena in Africa,Gibralter in Europe amongst others.
Contrary to public opinion,Britain is still an Empire,but of a well developed form.It is known as the Commonwealth.
Millions of people have fallen for the media lies and thus do not know how the Empire functions.
The British parliament is a ridiculous laghable 21st century joke,a reform of the monarchy.It does not run the monarch.The Queen controls the British government from top to down,via a privy council.
Number one on the privy council is the Queen,she is followed by hundreds of people,including he tools of Britains old colonial office.The Colonial office is now called the Development office.
These hundreds of people also include crown Agents who operate in whole countries around the world.
Today,a myth has been grown and shared amongst political,industrial and intellectual masses and elites across the world.
The myth claims the British empire has disappeared,and the British royal family is now a powerless reverence or relic of days gone by;collecting its modest pension,maybe attracting trickles of tourist pounds,and fulfilling ceremonial obligations to justify its upkeep.
According to this fairy tale,Britain presently is cast in the role of a mild force in world affairs,a friend of the poor and defender of human rights.
This myth was grown,developed and shared by Britains vast intelligence and propaganda apparatus such as Bbc,hollinger corp,Oxford and Cambridge universirty,Reuters news network,and lastly the British Commonwealth.
The Uk itself has very little to do with the new British Empire.Wales,scotland,England,and most especially Northern Ireland are today just a little more than slave farm plantations,and social engineering laboratories,serving the needs of a few collections of families with a population of between 4000-5000 people,based in and around the city of London.
  Queen Elizabeth II is head of state of the United Kingdom and 31 other countries.She is legal owner of around 6,600 million acres of land,she is the richest human on earth.
The only human who owns whole countries,including countries which are not her own domestic territory.
At a current estimate of $5000 per acre,the Queens land holding is valued at approximately €17,600,000,000,000.
Her main holdings are Canada,Australia,Papua New Guinea,New Zealand and the UK.
She is a modern day 'Lord of the thieves'.

The corruption within the Royal family is vast and extremely horrifying.Talk about civil list loot,which provides a lavish expenditure for the monarch to spend on Palace entertainment.
In 1993,it came to public eye that the Queen had a civil list surplus estimated at about €35 million.Rather than return the money to the British treasury to be used for the good of the British masses,the Queen turned the civil list surplus into the Queen's reserve,which as she  claimed in 2009,is all spent.
For 40 years between 1952-1992,the Queen laundered €30 million by illegally and intentionally avaoiding tax.That money was saved in a swiss bank account where it would have realized about €300 million at the moment.
For people who think Queen Elizabeth has any love whatsoever for the poor British masses,they have  no real knowledge of the deception of the Royal Family.
On October 17,1956,Queen Elizabeth opened the Calder Hall nuclear power station,at that time the public was told nuclear power stations would produce electricity too cheap to meter.When eventually the Queen opened her first Uranium power station,it had nothing to do with providing electricity.
It was for the intent of producing nuclear weapon materials for her majesties government.The Queen plotted to hide the horrific cost of running nuclear power station with taxpayers money.

THE QUEENS URANIUM MINES

The Queen owns vast mines in Africa and Canada.Africa is the prime source of Uranium used in the Queen's nuclear reactors;the Uranium mining firm RIO tinto mines was formed by the British Royal family in the late 1950's by Roland Walter Fuhrnop aka Tiny Rowland,he was the Queens advicer on African issues.
The Queens holdings in Rio Tinto Zinc was secret until exposed via a leak from the Bank of England to Author Andrew Morton.
The Queen controls vast investments in General Electric Company of Great Britain,Royal dutch shell,Bp and many other firms.
The Queen partnering with top anglo-american elites controls 12%  of the world's precious base metals and minerals as stated by Author Charles Higham.
Part of Queen Elizabeth's known wealth consists of her private collection of jewelry,works of arts,castles,and portfolio’s comprising blue chip stocks,bonds,and real estate investments around the world.
In 1991,the Financial times estimated Queen Elizabeth’s investment was worth over €3 billon,which the Times termed as just spare cash.
This discredits Forbes Magazines claims that the Queen is worth just about $600 million.
Queen Elizabeth's total wealth is divided into parts.Amongst this parts is the Venetian-style fondo trust,which is to be passed to her heir-tax free.
The Queen has over 300 residencces,most of whhich are part of the Fondo to be passed on to her heir-tax free.These houses are  strictly for family members and palace funkies.These fondo includes:Buckingham Palace,Holyrood house in Edinburgh,Kensington Palace amongst others.
All Royal residences are maintained by the British taxpayer through her majesties Department of Environment.
  Queen Elizabeth has also personally acquired a large collection of art works ranging from Renaissance masterpiece,such as Leonardo da vinci's notebooks and of course the British taxpayer gets the bill for guarding,cleaning and maintaining the royal art collections.
The Duchy of Lancaster is also part of the continiously increasing fondo of Queen Elizabeth.As at 1987,the Duchy of Lancaster was 36,456 acres of mainly agricultural land:within the Dutchy,the freehold of 2.25 acres in the strand area of London is so valuable that Queen Elizabeth moved through the British parliament to allow her to develope and sell this area mainly to her oil rich Arab friends.
Prince Charles,the Prince of Wales,holds the income of the second royal Family duchy of Cornwall which has 50,000 acres of land.
The Crown jewels,which are kept in the tower of London,are another part of the fondo the British throne heir will inherit.
Apart from crown Jewels,Queen Elizabeth inherited the largest private collection of jewels in the world.The history of the collection shows the tight relationship between the city of London and the crown.

  

At the conclusion of the Boer war,the piece offering to Queen Victoria included the largest uncut diamond in the world,the Cullinan Diamond,which weighed 3,106 carats.
Two stone cut from the Diamond went to adorn the crown Jewels,and today Queen Elizabeth possesses a brooch which consist of the 3rd and 4th largest stones(94.4 and 63.6carats) cut from the Cullinan Diamond. Today,an adolatory group of oil-rich sheikhs and Emirs regularly add to the Queen's private collections.

The Queen is the power that be in the British  society.
The British parliament is a spineless and lame assembly which is not even allowed to investigate,probe or ask questions about Queen Elizabeth's control of the Energy market which includes her investments in oil,nuclear investments and gas.

The Queen presides over a meeting of the Joint Intelligence Committee(JEC) once every seven days,where she is fully briefed on the activities of all British secret services both domestic and international.
She has the sole responsibility of appointing Military commanders.No British overt or covert act is pepertriated without direct orders singed by her.

With over 450 military advicers in 30 countries,Queen Elizabeth II alone has the power to declare war and authorize treaties to be signed.Tony Blair didn't order the imperialist invasion of Iraq and Afghanistan the Queen did.She alone has the power to.

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