A Minute to Midnight: It's Time To Denounce the Saudi Barbarism and Bankrupt Wall Street

January 3, 2016

Justice for the victims of the Sept. 11, 2001 attacks has been stopped for too long by George W. Bush and Barack Obama; and now, heading off world war depends on doing that justice.

The mass executions by the barbaric Saudi regime on Jan. 2, which are now polarizing the entire Muslim world again, must be denounced widely by all civilized people, before Saudi actions trigger a new global war.

The first and immediate step must be the immediate release of the secret 28 pages from the original Congressional Joint Inquiry into 9/11, which detailed the direct role of the Saudi Monarchy in organizing those attacks on New York and Washington. President George W. Bush buried those 28 pages, and President Barack Obama has kept them buried. House bill HR 14 and Senate bill S 1471 have been demanding their release. But the time has come to bring the contents of those 28 pages to the floors of the House and Senate, and to all Americans.

Had those contents been out, there would be no Islamic State threat today, and the Saudi sponsorship of global jihadist terrorism would have been halted 13 years ago. The actions by Bush and Obama, in protecting that dirty Saudi secret, are tantamount to acts of treason against the American people, starting with the 3,000 Americans who perished in the Sept. 11, 2001 attacks.

The barbaric mass executions on Jan. 2 should be the clearest reminder that the leadership of the Kingdom is indistinguishable from the leadership of ISIS.

We also stand at one minute to midnight of a financial crash worse, in its effects on people, than 2008.

Today, Jan. 4, begins the policy of "bail-in" all over Europe and in the United States. Government regulators and bankers know the policy; but you probably don't: They will try to "recapitalize" any bank that fails, by taking its creditors' bonds, and then taking its depositors' money.

And banks will fail. In Europe a string of bank failures and "bail-ins" of savers has already hit Italy and Portugal just before New Years. In the U.S. financial system, the "junk debt" bubble connected to commodities has gotten 150% larger than the 2008 subprime mortgage bubble ever was; and the delinquent part of that junk debt suddenly spiked in December to 25% — that's as high as subprime mortgage defaults ever got before, the crash.

Clear and direct action is required against Wall Street. The "bail-in" swindle has been embraced by President Obama and passed into law, in the Dodd-Frank Act, by a cowardly and corrupt U.S. Congress. That Congress reconvenes Tuesday, Jan. 5 — it must be held to the fire immediately.

Congress could have shut the Wall Street casino down in 2010, by restoring the Glass-Steagall Act and other measures of President Franklin Roosevelt's first months in office. Congress caved in to Wall Street instead. They passed trillions in bailouts and then a Dodd-Frank Act which is now about to produce the even more devastating "bail-in" — bailing your savings into insolvent banks. Now, the Wall Street/London banking system which is set to blow, can really kill you.

No consideration should be given to any more bail-outs, or any bail-ins. Wall Street has no authority to collect these bad debts or replace them with your savings. To prevent economic catastrophe and general war, shut Wall Street and Obama down.

Make them put Glass-Steagall through now! House bill HR 381 and Senate bill S 1709.

Former Maryland Governor Martin O'Malley has stated the intention to restore Glass-Steagall more clearly than any other Presidential candidate — the Wall Street Journal called him "Wall Street's enemy number-one" as a result. Will he get the support to do it?

I'm in, keep me connected



Obama's Friend No. 2: Saudi King Salman Executes 47, Including a Leading Shi'a Cleric

Following Saudi Arabia's barbaric mass executions on Jan. 2, which have outraged the world, it is now time for the contents of the Congressional Inquiry's 28 secret pages to come to the floor of the U.S. Senate and House, ending the U.S. alliance with the al-Saud monarchy. Barack Obama, who ignored the mass memorial march of world leaders in the streets of Paris last January, in order to appear personally at Saudi King Salman's coronation, must be thrown out with it.

Neither Obama nor Britain's David Cameron have said anything about the execution of a leading Shi'a cleric, Sheikh Nimr al-Nimr, and 46 other prisoners. The Obama Administration made no attempt to warn the Saudi monarchy before it executed Sheikh al-Nimr.

After the mass executions, with protests spreading in East Saudi Arabia and Bahrain, and the Saudi Embassy in Tehran burned, U.S. State Department spokesman John Kirby only said that the executions "tended to increase tensions when they should be being reduced," and urged Obama's Saudi friends "to respect and protect human rights, and to ensure fair and transparent judicial proceedings in all cases." As for Cameron, one month ago he very uncomfortably told an ITV interviewer that "we depend on the Saudis for critical intelligence and security information, and that's the reason" Britain had pushed for Saudi Arabia to be head of the UN Human Rights Council!

The "28 pages" will make clear the Saudi role in helping the al-Qaeda terrorists strike the United States on Sept 11, 2001. Unless these pages are made public, the Saudi-backed terrorism will continue to kill wherever and whenever. It is not accidental, for example, that following a year of brutal, Saudi-led bombing attacks on Yemen, reports have emerged today that al-Qaeda in the Arabian Peninsula is trying to take the Yemeni port city of Aden.

Sheikh Nimr was an advocate of non-violence, in contrast to the violent killers in King Salman's monarchy. His execution has once again proven the close relationship between ISIS and King Salman, since ISIS, which practices the same violent Islamic doctrine, Wahaabism, that Salman practices, also are involved in eliminating all Shi'as. Sheikh Nimr spent years as a scholar in Tehran and Syria and was a revered Shi'a leader of Friday prayers in the Saudi Eastern Province. He stayed clear of political parties but demanded free elections.

The London Independent reported Sunday that Peter Tatchell, a leading campaigner of the human rights group Reprieve, reproached Cameron, saying the UK "must not turn a blind eye to such atrocities and must urgently appeal to the kingdom to change course. The UK Government's stance on Saudi Arabia was completely immoral."

'The EU's Banking System Will Crash': What About Wall Street?

The financial publication Market Oracle Sunday runs a forecast by Graham Summers that "The EU's banking system will crash" in 2016. Summers notes that the entire banking system of the City of London and the rest of Europe, with negative interest rates and expanding quantitative easing (QE) by the ECB, is now leveraged at 26:1, rivaling the leveraging of the Wall Street banks by the end of 2007.

With the mandatory policy of bank bail-ins, the costs of that crash will be looted out of the lives of European populations.

Summers correctly adds Japan's financial system, which is "insolvent. The country has no choice but to continue to implement QE, or else it will go to crash in a matter of months. However, with the Bank of Japan already monetizing ALL of the country's debt issuance, the question arises, just what else can it buy?"

But Market Oracle leaves out the U.S. financial system. Standard and Poor's has just reported that the portion of "high-yield" or "junk debt" in the U.S. financial system which is distressed—i.e., delinquent—reached a peak of 24.5% in December, the highest level since—of course—late 2008. S&P calls this debt sector "speculative grade," meaning largely junk bonds and leveraged loans. The oil and gas sector accounted for about 30% of the distressed high-yield debt issuers, whose distressed debt spiked from $180 billion to $233 billion in a month, from November to December. The S&P finding was reported in the publication Oil and Gas Weekly on Jan. 2.

The U.S. junk debt bubble has reached $3.6 trillion, according to the FDIC, having grown by 20% ($750 billion) in 2015. This is $1.5 trillion in non-investment grade (junk) bonds, $1.9 trillion in leveraged loans, and $250 billion in collateralized loan obligations. And the interest rate on this $3.6 trillion has jumped up to range from 9.8% (BB bonds and leveraged loans) to 18% (CCC junk bonds), making it all nearly impossible to refinance, or to service. By contrast, the U.S. subprime mortgage bubble reached a total $1.4 trillion in MBS in 2007. Nor did subprime delinquency rates ever get above 25% before the 2008 bank crash.

The Financial Times added, in a Dec. 30 commentary, the question of derivatives poison: "The downturn in commodity debt is exacerbated by increased financialisation, which converted commodities into tradeable equivalents. Cash flows from future sales were monetised to raise large amounts of debt to finance expansion. The collateral value of commodities secured expansion in borrowing and trading. Derivatives allowed new participants, other than consumers and producers, to invest in and trade commodity price expectations."