In response to the Israeli attack on Gaza, the US and UK governments and the mainstream media in those countries have been as usual almost unanimous in their support for the Israeli actions and in condemning the Palestinians.

Paul Craig Roberts comments on the underlying reasons why Gaza is being strangled and the hypocritical reactions of especially the US and UK governments.

Israel’s excuse for its violence is that from time to time the Palestinian resistance organization, Hamas, fires off rockets into Israel to protest the ghetto life that Israel imposes on Gazans. The rockets are ineffectual for the most part and seldom claim Israeli casualties. However, the real purpose for the Israeli attack is to destroy Hamas.

In 2006 the US insisted that the Palestinians in Gaza and the West Bank hold free elections. When free elections were held, Hamas won. This was unacceptable to the Americans and Israelis. In the West Bank, the Americans and Israelis imposed a puppet government, but Hamas held on in Gaza. After unheeded warnings to the Gazans to rid themselves of Hamas and accept a puppet government, Israel has decided to destroy the freely elected government with violence.
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For the US and UK governments, Israel can do no wrong. Israel doesn’t have to stop withholding food, medicine, water, and energy, but Hamas must stop protesting by firing off rockets. In violation of international law, Israel can drive West Bank Palestinians off their lands and out of their villages and give the stolen properties to “settlers.” Israel can delay Palestinians in need of emergency medical care at checkpoints until their lives ebb away. Israeli snipers can get their jollies murdering Palestinian children.

The Great Moral Anglo-Americans couldn’t care less.

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The more accurate parallel for what is happening in South Ossetia is not Iraq but Kosovo.

But mention of Kosovo is largely absent from the current discussions because the parallel between what happened there and what is happening in South Ossetia undercuts the basis for the west’s anger at Russia. So Kosovo must be made to disappear. As Aldous Huxley said, “Great is truth, but still greater, from a practical point of view, is silence about truth. By simply not mentioning certain subjects… totalitarian propagandists have influenced opinion much more effectively than they could have by the most eloquent denunciations.” Justin Raimondo, in an essay that traces the origins and resurgence of Russophobia says that “Official censorship simply isn’t necessary in the West, because everyone knows what to say – and, more importantly, what not to say.
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In addition to watching 2001: A Space Odyssey recently, I also indulged in a personal mini-Arthur C. Clarke festival, re-reading his novels Childhood’s End and Rendezvous with Rama, and reading for the first time his short story The Sentinel that contains as its central idea a key plot element that reappeared in 2001.

One of the interesting things about Clarke’s books is how for him, it is the science that is the most interesting element. That, and his vision of what future society will be like, are what moves his stories along. He tends to eschew traditional storytelling devices such as love, intrigue, violence, and all the other strong emotional factors. His stories focus less on fleshing out the characters and more on how normal human beings might react when they encounter an astounding new piece of information, such as making contact with intelligent life from elsewhere in space.
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(For previous posts in this series, see here.)

The most basic problem with almost any religion is the fact that they raise ‘faith’, which is the irrational acceptance of things in the absence of, or even counter to, credible evidence and reason, to the level of a virtue. This is simply asking for trouble. Once you have said that you believe something just because some book says so or some inner voice tells you to do so, you have lost all standing to condemn others whose own inner voices (or the voices of their priests, rabbis, or imams) tell them to do unspeakable acts in the name of obeying god’s will.

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Dean Baker (co-director of the Center for Economic and Policy Research in Washington, DC) argues that the US is heading towards a recession, if not already in one, and he says that the main cause is the collapse of the housing bubble and not the spending on the Iraq war, though that is not helping either.

The villains in this story are the economists who somehow couldn’t see an $8 trillion housing bubble, the banks that fueled the bubble with bad and often predatory loans, the regulatory institutions that did nothing to prevent the growth of the bubble and the spread of predatory loans, and most of all, Alan Greenspan and the Fed who blessed the whole thing.

We have to hold these folks responsible for their bubble economics. The best place to start would be to remove them from positions where they are still making economic policy.

On Tuesday, we saw the Federal Reserve decide to pump $200 billion into the financial system to try and alleviate the crisis and it sent stock prices soaring that day.

I didn’t understand exactly what they did or how it was supposed to work because the news was reported in a very obscure way. Fortunately for people like me, in another article Baker explains clearly what is going on here and argues that the media is not characterizing this action for what it really is: a federal bailout of the banks that were partly responsible for this mess.

Can’t the media find any economists who don’t think that handing hundreds of billions of taxpayer dollars to the big banks and the incredibly rich people who own and manage them is a good idea? Apparently not, given the coverage so far to the Fed’s proposal to lend $200 billion to the banks using mortgage backed securities as collateral.

The workings of the Fed and the financial markets can appear complicated, so let’s simplify matters a bit to make it more clear what is going on here. Suppose that it was suddenly discovered that much of the wealth held by the country’s leading financial institutions was in fact counterfeit. Instead of having hundreds of billions of dollars of real currency in their vaults, institutions like Citigroup, Merrill Lynch, and Bears Stearns actually had hundreds of billions of dollars of counterfeit currency. Suppose further that the public did not know exactly who held what in terms of counterfeit currency, only that all of them had a lot of it. (The point here is that these banks hold mortgage backed securities, many of which are only worth a fraction of their face value, and therefore can be viewed as the equivalent of counterfeit currency.)

In such circumstances, investors would be very reluctant to accept the credit of any of the major financial institutions. They couldn’t know whether most of their assets were in fact counterfeit, and they were dealing with a bankrupt institution, or whether the counterfeit currency was only a limited share of the wealth, which would not jeopardize the institution’s ability to meet its obligations.

This is in fact the credit squeeze that we’ve have recently witnessed. The spread between the interest rates on a wide variety of assets and the interest rate on safe assets (U.S. government debt) has soared. As a result, the Fed’s effort to stimulate the economy, by lowering the federal funds rate, has been largely unsuccessful because other interest rates have remained high.

In response to this situation the Fed today announced that it would lend $200 billion to banks and other financial firms, accepting mortgage backed securities as collateral. This is effectively the same as saying that the Fed is going to lend money to banks and accept the counterfeit currency as collateral, treating it just as though it were real money.

The intended effect of this policy is to convince other investors that the counterfeit currency is in fact real currency, or at the very least that there is a really huge sucker out there (the Fed) which is prepared to treat the counterfeit currency as real currency.

So how does this story play out? Well, insofar as the Fed is successful, the counterfeit currency retains its value for a while longer. This allows Citigroup, Merrill Lynch, Bears Stearns and the rest of the big boys more time to dump their counterfeit currency on suckers who haven’t figured out how the game is played.

It is possible that they won’t be able to find enough suckers, in which case these banks will end up defaulting on their loans and the Fed (i.e. the government) has lost tens or hundreds of billions dollars paying good money for counterfeit currency. Alternatively, perhaps the big boys are successful and can offload enough of their counterfeit money to restore themselves to solvency before the music stops. Then the Fed is repaid, but the counterfeit money now sits in the hands of other, less informed, or less inside, investors.

You should really read the whole of this excellent article.

Baker shows how once again, we have the Federal Reserve colluding with the government to use taxpayer money to protect and enrich the wealthiest people in the country.

POST SCRIPT: The work of Satan

Almost everyone has had encounters with those annoying little plastic containers of milk that always seem to squirt onto your clothes when you try to open them. Stephen Fry and Hugh Laurie deal with this menace appropriately.

In the current race for the presidency, it has become clear that among the candidates who might be suitable, the Villagers are supporting Hillary Clinton and Barack Obama on the Democratic side and Mitt Romney, Rudy Giuliani, and John McCain on the Republican side. All of them have made the proper obeisance to the Village gods.
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It is hard to understand American politics without having a clear idea about the nature of how power is controlled and the important decisions made.

The first step to understanding is to not take seriously divisions along the lines of Democrat-Republican or liberal-conservative or left-right. While such terms may be useful in limited contexts, they are mostly used to distract people from seeing the real action, similar to the way that magicians Penn and Teller distract you without you even realizing it so that you do not see how the trick is really done. A good example of issues that are meant to distract was the infamous Terri Schiavo affair. (This is why I always say that it is not the things that politicians strongly disagree about to which we should pay close attention but the things that they agree on.)
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(Please see here for previous posts in this series.)

One of interesting things about evolution is that it seems to be speeding up with time. Earth was formed about 4.7 billion years ago and it took about a billion years for the first single-celled life to appear about 3.5 billion years ago. It then took another 2.5 billion years for the first multi-cellular life form (like sponges) to appear. So everything else, all the insects, animals, and birds, came into being within the last one billion years or so.
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