Even Mainstream Academia Worried about Massive Bubbles in Markets

By EconMatters  

 

 

Academia Finally Sounding Alarm

 

As stocks set new records each month even other academic economists are starting to realize that not only is the Federal Reserve behind the curve, but that they are part of the rising risk concerns that are building in the financial system, and their failure to take responsibility for valuations that are 10% over-valued even on the most optimistic valuations, is alarming given the past bubbles and the damage that has occurred through excessively low interest rates providing far too much liquidity in the system. 

 

Far Too Much Liquidity in the Financial System 

 

 

 

 

Make no mistake with QE still going on, and a 25 basis points fed funds rate, combined with Japan, China, England and the ECB all providing loads of liquidity to the financial system, risk taking is off the charts, valuations are bubbly in many markets, and the entire financial system is setting itself up for another massive, deleveraging crash once again. 

 

 

 

There is just too much liquidity in the financial system, and the US and England are the two economies best able to start reducing overall liquidity on a global basis, the UK with a hot real estate market, and the US with a hot job market and overheated stock market. 

 

The point is that there is too much systemic risk right now and it is heading in the wrong direction given the fact that Britain and the United States are both performing far too well to continue to have recession era loose monetary policies. It might make sense in Japan and Europe but when you have even well performing economies with ‘recession era level’ of interest rates providing massive amounts of cheap liquidity to the financial system, no wonder we have so many bubbles in bonds and stocks.

Don`t Be Fooled by the Lag Effect

 

 

The financial markets are not acting and trading normally, trust me I have seen many market cycles, and there is more liquidity in the financial system than there was in the credit bubble of 2006, this means things are out of hand once again, and the Fed needs to start soaking up this liquidity, and talking much more hawkish, just to ensure two-way markets, as right now there are far too many one-sided, all-in markets with ‘zero perceived risk’, and therein lies the risk problem.

 

 

Prudential Regulation is Passing the Buck

 

The notion floated by Janet Yellen that “Prudential Regulation” will monitor and watch for risky capital allocation strategies is flat out false. As a market participant, I can tell her “Prudential Regulation” as a tool sure isn`t working right now, and there are massive bubbles in many asset classes, the markets don`t even trade correctly and there is far too much liquidity in the financial system. 

 

Moreover, if Janet Yellen truly believes that “Prudential Regulation” will be the answer in avoiding financial markets becoming ‘too risky’ or dangerous from a risk-taking standpoint, i.e., posing systemic risk to the entire highly correlated financial system; if she really believes this is an effective tool, then she needs to step down immediately because she is obviously not qualified for the position of Fed Chairperson! It is dangerously close to an alarming point right here, the bubbles keep building and the Fed needs to take responsibility for creating this systemic risk in financial markets.

 

 

The Federal Reserve are the only ones that can reduce the risk of another financial crisis by reigning in some of the massive liquidity that is bursting at the seams in all kinds of places with no real place to go. I don`t think they realize just how much liquidity is currently coursing through the veins of the financial markets, it is unprecedented. 

 

The fact that QE was allowed to go on for basically 2 straight years, and the cumulative effects of zero percent interest rates for 7 years has finally come into financial markets with a bang. There was a lag effect, and now the liquidity overflow is out of control, we are starting to build bubbles in asset classes that have no way of long term sustainability. Some markets are as much as 25% overvalued on a five year time frame. There is no way in hell that these positions are going to be solid investments five years from now!

 

When Economists Recognize there is a Liquidity Bubble, We Have a Serious Problem!

 

Martin Feldstein, Harvard University professor alludes to what many in the financial community recognize that risk-taking is out of control, financial markets are not two-sided markets anymore, there are massive mispricing`s in many markets, all spawned by too much liquidity in the system.

The Fed needs to wake up to the risk in the system that they have created, they have become complacent because of the lag effect, well there is no more lag effect, liquidity is sloshing around the financial system right now at record levels. 

 

 

The S&P 500`s latest record 2000 run, and Bond Yields at Recession Era levels because there is so much liquidity with no place to go even in sleepy August ought to wake the doves out of their slumber fogginess.  “Prudential Regulation” is not going to soak up the bubbly liquidity in the system, only Fed policy is going to reduce the current risk in the system. Stop passing the buck, and sinking your heads in the sand like ostriches, take some responsibility, and get your act together; we have a massive overflowing liquidity problem here in financial markets!

 

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Brickbat: Stand It Right There and Bend Over

Some female students at
Oklahoma’s Noble High School say they were humiliated by how
Superintendent Ronda Bass recently enforced the dress
code
. They say she first asked a student gathering if they’d
seen any “skanks” at school. Later, she made several girls stand up
so she could personally inspect their clothes and asked some of
them to bend over to see if their dresses and skirts were too
short.

from Hit & Run http://ift.tt/1qJ1KI6
via IFTTT

CME Halt Electronic Gold and Silver Futures Trading Due to “Planned Software Reconfigurations”

CME Halt Electronic Gold and Silver Futures Trading Due to “Technical Glitch”



CME Group Inc., the world’s largest futures market, halted all of its Globex electronic trading markets, including gold and silver, for four hours due to a “technical glitch” yesterday. This is the second time this has happened this year.

CME halted trading on its electronic platform and said it was due to “planned software reconfigurations.” CME, which owns the Chicago Board of Trade, New York Mercantile Exchange and other markets, made the reconfigurations over the weekend as part of ongoing upgrades to technology, a spokeswoman said in a statement.

Market participants were left scratching their heads as to why the “planned software reconfigurations” did not take place prior to the commencement of trading.

All other Globex electronic trading markets, including U.S. Treasury’s, oil, gold and U.S. stock indexes were affected with many markets having order routing problems.

A note on the CME Group website said “CME Globex markets will Pre-open at 20:30 Central Time and Open at 21:00 Central Time. All day and session orders, including GTDs with today’s trade date will be cancelled. All GTCs that have been acknowledged will remain working.”

Earlier, trading was suspended indefinitely. Any day orders that brokerages attempted to file and any orders that were filled, dated today were canceled.


The problem may be related to one of the exchange’s trading engines but the exchange was still working to identify the extent of the damage according to a CME analyst.

This is not the first time that this has happened. The CME halted trading for some futures contracts for more than 90 minutes on April 8 due to “technical issues.”

The nature of the “technical issues” were not disclosed. Some analysts have warned that cyber war could see hackers, possibly state sponsored, attempt to disable and take down financial markets and exchanges as a form of financial warfare.

Security experts say China, Russia, the U.S. and other states are adept at and becoming more sophisticated at cyber espionage and warfare.

There is no speculation that this technical glitch was cyber terrorism or cyber war. However, it underlines the risk posed to financial markets and hence the importance of owning physical bullion coins and bars.

 

Inform yourself of the 7 Key Gold Storage Must Haves here




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Muslims Who Persecute Christians Are Violating a DIRECT ORDER from Muhammad

File:The Patent of Mohammed.jpg

The Achtiname of Muhammad – 626 AD

 

They may have a profitable business model, but ISIS and other Muslim extremists who persecute Christians are disobeying a direct order from Muhammad, the founder of Islam.

Specifically, in 626 AD, Muhammad issued The Achtiname of Muhammad, also known as the Covenant or (Holy) Testament (Testamentum) of the Prophet Muhammad.

The Achtiname – shown above – ordered Muslims to protect and defend Christians, and condemned as sinners Muslims who mistreated Christians:

This is a letter which was issued by Mohammed, Ibn Abdullah, the Messenger, the Prophet, the Faithful, who is sent to all the people as a trust on the part of God to all His creatures, that they may have no plea against God hereafter. Verily God is the Mighty, the Wise. This letter is directed to the embracers of Islam, as a covenant given to the followers of Nazarene [i.e. Christians] in the East and West, the far and near, the Arabs and foreigners, the known and the unknown.

 

This letter contains the oath given unto them, and he who disobeys that which is therein will be considered a disobeyer and a transgressor to that whereunto he is commanded.  He will be regarded as one who has corrupted the oath of God, disbelieved His Testament, rejected His Authority, despised His Religion, and made himself deserving of His Curse, whether he is a Sultan or any other believer of Islam. Whenever monks, devotees and pilgrims gather together, whether in a mountain or valley, or den, or frequented place, or plain, or church, or in houses of worship, verily we are [at the] back of them and shall protect them, and their properties and their morals, by Myself, by My Friends and by My Assistants, for they are of My Subjects and under My Protection.

 

I shall exempt them from that which may disturb them; of the burdens which are paid by others as an oath of allegiance. They must not give anything of their income but that which pleases them—they must not be offended, or disturbed, or coerced or compelled. Their judges should not be changed or prevented from accomplishing their offices, nor the monks disturbed in exercising their religious order, or the people of seclusion be stopped from dwelling in their cells.

 

No one is allowed to plunder the pilgrims, or destroy or spoil any of their churches, or houses of worship, or take any of the things contained within these houses and bring it to the houses of Islam. And he who takes away anything therefrom, will be one who has corrupted the oath of God, and, in truth, disobeyed His Messenger.

 

Poll-taxes should not be put upon their judges, monks, and those whose occupation is the worship of God; nor is any other thing to be taken from them, whether it be a fine, a tax or any unjust right. Verily I shall keep their compact, wherever they may be, in the sea or on the land, in the East or West, in the North or South, for they are under My Protection and the testament of My Safety, against all things which they abhor.

 

No taxes or tithes should be received from those who devote themselves to the worship of God in the mountains, or from those who cultivate the Holy Lands. No one has the right to interfere with their affairs, or bring any action against them. Verily this is for aught else and not for them; rather, in the seasons of crops, they should be given a Kadah for each Ardab of wheat (about five bushels and a half) as provision for them, and no one has the right to say to them this is too much, or ask them to pay any tax.

 

As to those who possess properties, the wealthy and merchants, the poll-tax to be taken from them must not exceed twelve drachmas a head per year [according to Wikipedia, about 200 modern U.S. dollars].

 

They shall not be imposed upon by anyone to undertake a journey, or to be forced to go to wars or to carry arms; for the Islams have to fight for them. Do no dispute or argue with them, but deal according to the verse recorded in the Koran, to wit: ‘Do not dispute or argue with the People of the Book but in that which is best’ [29:46]. Thus they will live favored and protected from everything which may offend them by the Callers to religion (Islam), wherever they may be and in any place they may dwell.

 

Should any Christian woman be married to a Musulman [i.e. Muslim], such marriage must not take place except after her consent, and she must not be prevented from going to her church for prayer. Their churches must be honored and they must not be withheld from building churches or repairing convents.

 

They must not be forced to carry arms or stones; but the Islams must protect them and defend them against others. It is positively incumbent upon every one of the Islam nation not to contradict or disobey this oath until the Day of Resurrection and the end of the world.

(This is the Haddad translation; other translations here.)

ISIS and other Islamic terrorists are not true Muslims, and they have disobeyed a direct order of Muhammad.

No wonder the majority of Muslims all over the world condemn them.

Related: 

U.S. Backs Hotbeds of Islamic Fundamentalism




via Zero Hedge http://ift.tt/1qmckZ7 George Washington

The ‘Sunni Turn’ Against The ‘Shiite Crescent’: How The Strategic Stupidity Of Washington (And Its Allies) Created ISIS

Submitted by AntiWar's Justin Raimondo via Contra Corner blog,

The Islamic State in Syria (ISIS) is being touted as the newest “threat” to the American homeland: hysterics have pointed to Chicago as the locus of their interest, and we are told by everyone from the President on down that if we don’t attack them – i.e. go back into Iraq (and even venture into Syria) to root them out – they’ll soon show up on American shores.

How is this supposed to work? Well, you see, that monster who beheaded James Foley had a British accent, and there are reports of more than a few Brits (and Americans) traveling to Syria to fight on behalf of ISIS. So these jihadi “internationalists” could always just fly back to either Britain or the US, where another 9/11 would shortly be in the works.

Let’s put aside the FBI statement that, while Americans abroad may be in some unspecified degree of danger, ISIS represents “no credible threat” to the continental United States. If we take the ISIS-threatens-us-at-home war propaganda seriously we have to believe Western law enforcement agencies, with all the tools at their command – including near total surveillance of online and telephonic communications worldwide – have no idea what dubious characters have traveled to Syria via, say, New York or London, and would in any case be powerless to prevent their return.

In short, we have to invade yet another country (or two) because our own post-9/11 security arrangements are virtually nonexistent – in spite of having spent untold billions on building them up.

Can that really be true?

If we step back from the hysteria generated by the beheading of US journalist James Foley, what’s clear is that this new bogeyman is the creation of the United States and its allies in the region.

ISIS didn’t just arise out of the earth like some Islamist variation on the fabled Myrmidons: they needed money, weapons, logistics, propaganda facilities, and international connections to reach the relatively high level of organization and lethality they seem to have achieved in such a short period of time. Where did they get these assets?

None of this is any secret: Saudi Arabia, Qatar, and the rest of the oil-rich Gulf states have been backing them all the way. Prince Bandar al-Sultan, until recently the head of the Kingdom’s intelligence agency – and still the chief of its National Security Council – has been among their biggest backers. Qatar and the Gulf states have also been generous in their support for the Syrian jihadists who were too radical for the US to openly back. Although pressure from Washington – only recently exerted – has reportedly forced them to cut off the aid, ISIS is now an accomplished fact – and how can anyone say that support has entirely evaporated instead of merely going underground?

Washington’s responsibility for the success of ISIS is less direct, but no less damning.

The US was in a de facto alliance with the groups that merged to form ISIS ever since President Barack Obama declared Syria’s Bashar al-Assad “must go” – and Washington started funding Syrian rebel groups whose composition and leadership kept changing. By funding the Free Syrian Army (FSA), our “vetted” Syrian Islamists, this administration has actively worked to defeat the only forces capable of rooting out ISIS from its Syrian nest – Assad’s Ba’athist government. Millions of dollars in overt aid – and who knows how much covertly? – were pumped into the FSA. How much of that seeped into the coffers of ISIS when constantly forming and re-forming chameleon-like rebel groups defected from the FSA? These defectors didn’t just go away: they joined up with more radical – and militarily effective – Islamist militias, some of which undoubtedly found their way to ISIS.

How many ISIS cadres who started out in the FSA were trained and equipped by American “advisors” in neighboring Jordan? We’ll never know the exact answer to that question, but the number is very likely not zero – and this Mother Jones piece shows that, at least under the Clinton-Petraeus duo, the “vetting” process was a joke. Furthermore, Senator Rand Paul (R-Kentucky) may well have been on to something when he confronted Hillary with the contention that some of the arms looted from Gaddafi’s arsenals may well have reached the Syrian rebels. There was, after all, the question of where that mysterious “charity ship,” the Al Entisar, carrying “humanitarian aid” to the Syrian rebels headquartered in Turkey, sailed from.

Secondly, the open backing by the US of particular Syrian rebel groups no doubt discredited them in the eyes of most Islamist types, driving them away from the FSA and into the arms of ISIS. When it became clear Washington wasn’t going to provide air support for rebel actions on the ground, these guys left the FSA in droves – and swelled the ranks of groups that eventually coalesced into ISIS.

Thirdly, the one silent partner in all this has been the state of Israel. While there is no evidence of direct Israeli backing, the public statements of some top Israeli officials lead one to believe Tel Aviv has little interest in stopping the ISIS threat – except, of course, to urge Washington to step deeper into the Syrian quagmire.

In a recent public event held at the Aspen Institute, former Israeli ambassador to the US Michael Oren bluntly stated that in any struggle between the Sunni jihadists and their Iranian Shi’ite enemies, the former are the “lesser evil.” They’re all “bad guys,” says Oren, but “we always wanted Bashar Assad to go, we always preferred the bad guys who weren’t backed by Iran to the bad guys who were backed by Iran.” Last year, Sima Shine, Israel’s Minister of Strategic Affairs, declared:

"The alternative, whereby [Assad falls and] Jihadists flock to Syria, is not good. We have no good options in Syria. But Assad remaining along with the Iranians is worse. His ouster would exert immense pressure on Iran.”

None of this should come as much of a surprise to anyone who has been following Israel’s machinations in the region. It has long been known that the Israelis have been standing very close to the sidelines of the Syrian civil war, gloating and hoping for “no outcome,” as this New York Times piece put it.

Israel’s goal in the region has been to gin up as much conflict and chaos as possible, keeping its Islamic enemies divided, making it impossible for any credible challenge to arise among its Arab neighbors – and aiming the main blow at Tehran. As Ambassador Oren so brazenly asserted – while paying lip service to the awfulness of ISIS and al-Qaeda – their quarrel isn’t really with the Arabs, anyway – it’s with the Persians, whom they fear and loathe, and whose destruction has been their number one objective since the days of Ariel Sharon.

Why anyone is shocked that our Middle Eastern allies have been building up Sunni radicals in the region is beyond me – because this has also been de facto US policy since the Bush administration, which began recruiting American assets in the Sunni region as the linchpin of the Iraqi “surge.” This was part and parcel of the so-called “Sunni turn,” or “redirection,” in Seymour Hersh’s phrase, which, as I warned in 2006, would become Washington’s chosen strategy for dealing with what they called the “Shia crescent” – the crescent-shaped territory spanning Iran, Iraq, Syria, and parts of Lebanon under Hezbollah’s control, which the neocons began pointing to as the Big New Threat shortly after Saddam Hussein’s defeat.

The pro-Sunni orientation of US policymakers wasn’t reversed with the change of administrations: instead, it went into overdrive, especially after the much-vaunted Arab Spring. Both Hillary Clinton, then Secretary of State, and David Petraeus, who had yet to disgrace himself and was still CIA director, lobbied intensively for more support to the Syrian rebels. The Sunni Turn took a fateful turn when the Three Harpies of the Apocalypse – Hillary, Susan Rice, and now UN ambassador Samantha Power – hectored Obama into pursuing regime change in Libya. In this case the US and its NATO allies acted as the Islamist militia’s air force while supplying them with arms on the ground and diplomatic support internationally.

Yet even as Libya was imploding from the effects of its “liberation,” the neocons and their “liberal” interventionist allies in the Democratic party – and in the highest reaches of the Obama administration – were building support for yet another fateful “Sunni turn,” this time in Syria. Caving to this pressure, the Obama administration decided to act on accusations of poison gas supposedly used by Assad against the rebels to directly intervene with a bombing campaign modeled along Libyan lines. Only a huge public outcry stopped them.

ISIS could never have been consolidated in the form it has now taken without the strategic disaster of Washington’s “Sunni turn.” While the US may have reason to regret this harebrained strategy, it’s far too late for that – and it looks to me like our “allies” in the region, including Israel, aren’t about to turn on a dime at Obama’s command.

Last year around this time Vladimir Putin very publicly warned against the scenario we are seeing unfold in the Middle East:

“If Assad goes today, a political vacuum emerges – who will fill it? Maybe those terrorist organizations. Nobody wants this – but how can it be avoided? After all, they are armed and aggressive.”

Now that Putin’s prediction has come to pass, we’re too busy confronting him in Ukraine – and dreaming of the day we can do to him what we did to Assad – to acknowledge it. But you can hear the gears of our policymaking machine screaming in protest as Washington does an abrupt about-face and starts cooperating with Assad – previously denounced as the latest edition of Adolph Hitler – by sharing intelligence enabling the Syrian army to target ISIS positions.

We have always been at war with Eurasia. Or is that Eastasia? I forget.

The lesson of all this?

What a tangled web we weave when first we practice to intervene. And deceive – this administration has not only been lying to the American people about the nature of the Syrian “liberators” we’ve been funding with their tax dollars, they also been deceiving themselves. The Sunni Turn has turned on them, and with a vengeance.

The ancient Greeks had a word for the particular sin committed by our political class: they called it hubris– a mindset generated by the belief that humankind can defy the gods and get away with it. Yet the divine pantheon of Olympus had a way of giving these malefactors their comeuppance: they sent the goddess Nemesis to avenge such sacrilege – and she was relentless in her pursuit. The word nemesis has come down to us to mean “the inescapable agent of someone’s or something’s downfall” – and that is as succinct an explanation of the origins of ISIS as we are likely to come across.

Okay, so the anti-interventionists told us so – but now what? What should the United States do about ISIS now that they’ve taken over half of Syria and a third of Iraq?

The answer is: let Assad, the Iranians, the Turks, and, yes, the Russians take care of it, since they are the states directly threatened by the growth of the so-called Islamic State. Why should we fight their war for them?

Contrary to the War Party’s hebephrenic appeals to intervene, inaction on our part is key to the destruction of ISIS. The Grand Caliph of the Islamic State would like nothing more than to be able to portray ISIS as the valiant opponent of a US reentry into the region. It would be a tremendous propaganda victory for them to be able to frame their cause in this context because the result would be a successful international recruiting drive that would fill the ranks of the Islamic State’s army even as hundreds are killed by US drones and missile strikes.

By letting nature take its course and permitting Iraq’s predatory neighbors to gobble up the charred remains of the Iraqi state we destroyed, we can solve a problem we created in the first place, albeit not without incurring the inevitable cost of our initial error – which was invading Iraq in the first place.

ISIS has made a big deal out of declaring the end of the Sykes-Picot agreement, which divided the region between British and French interests at the end of World War I. Having declared their “Islamic State,” ISIS claims to have destroyed the status quo by militarily – and, to much notice, symbolically – erasing the border between Syria and Iraq. The claim is laughable: a ragtag”army” of perhaps 17,000 fighters couldn’t have achieved that without some significant outside help, not only from the Saudis and the Qataris but, decisively, from Washington.

We abolished Sykes-Picot by effectively putting an end to Iraqi statehood. The process was completed when Washington subsequently allied with Iraq’s Sunni tribesmen in a vain hope to avoid the break up of Iraq and drive Al Qaeda out of the country. What happened, instead, was that the Sunni tribesmen’s brothers across the by-then-virtually-nonexistent border were drawn into the Iraqi arena, where they took up the fight against Baghdad – and their American backers.

ISIS didn’t blast Sykes-Picot to pieces: we did, and now we must live with the consequences. Nemesis has taken her pound of flesh.

The best course now is to learn the lesson every child has to absorb before he can attain adulthood in more than merely a physical sense: actions have consequences. Applied to the Middle East, this lesson can only have one meaning: stay out and keep out.


via Zero Hedge http://ift.tt/1qleaJI Tyler Durden

A Tale Of 2 Americas: “Baby Massage” & iPads Versus “.38 Revolver” & Antichrist

Based on the results of a decade of search data, NY Times offers a rather disturbing portrait of the very different subjects that occupy the thoughts of richer America and poorer America. Offering a glimpse into the day-to-day thinking behind the nation’s inequality, searches in the hardest places to live include health problems, weight-loss diets, guns, video games, religion and Antichrist!? In the easiest places to live, cameras, iPads, and baby massage are highly correlated to ease-of-living.

2 Americas…

 

 

As NY Times’ David Leonhart ( @DLeonhart ) notes,

This summer, The Upshot conducted an analysis of every county in the country to determine which were the toughest places to live, based on an index of six factors including income, education and life expectancy. Afterward, we heard from Hal Varian, the chief economist at Google, who suggested looking at how web searches differ on either end of our index.

 

The results, based on a decade of search data, offer a portrait of the very different subjects that occupy the thoughts of richer America and poorer America. They’re a glimpse into the id of our national inequality.

 

In the hardest places to live – which include large areas of Kentucky, Arkansas, Maine, New Mexico and Oregon – health problems, weight-loss diets, guns, video games and religion are all common search topics. The dark side of religion is of special interest: Antichrist has the second-highest correlation with the hardest places, and searches containing “hell” and “rapture” also make the top 10.

 

To be clear, these aren’t the most common searches in our list of hardest places. They’re the searches with the highest correlation to our index. Searches on some topics, like Oprah Winfrey or the Super Bowl, are popular almost everywhere. The terms on these lists are relatively common subjects for web searches in one kind of place — and rarely a subject in the other.

 

In the easiest places to live, the Canon Elph and other digital cameras dominate the top of the correlation list. Apparently, people in places where life seems good, including Nebraska, Iowa, Wyoming and much of the large metropolitan areas of the Northeast and West Coast, want to record their lives in images. Beyond cameras, subjects popular in the easiest places include Baby Joggers, Baby Bjorns and baby massage; Skype and Apple devices like the iPod Nano; a piece of workout equipment known as a foam roller.

*  *  *
As David concludes,

The different subjects that occupy people’s thoughts aren’t just a window into American life today. They’re a window onto future inequality, too.


via Zero Hedge http://ift.tt/1ssGNTX Tyler Durden

Ron Paul On Ferguson: The War Comes Home

Submitted by Ron Paul via The Ron Paul Institute,

America’s attention recently turned away from the violence in Iraq and Gaza toward the violence in Ferguson, Missouri, following the shooting of Michael Brown. While all the facts surrounding the shooting have yet to come to light, the shock of seeing police using tear gas (a substance banned in warfare), and other military-style weapons against American citizens including journalists exercising their First Amendment rights, has started a much-needed debate on police militarization.

The increasing use of military equipment by local police is a symptom of growing authoritarianism, not the cause. The cause is policies that encourage police to see Americans as enemies to subjugate, rather than as citizens to “protect and serve.” This attitude is on display not only in Ferguson, but in the police lockdown following the Boston Marathon bombing and in the Americans killed and injured in “no-knock” raids conducted by militarized SWAT teams.

One particularly tragic victim of police militarization and the war on drugs is “baby Bounkham.” This infant was severely burned and put in a coma by a flash-burn grenade thrown into his crib by a SWAT team member who burst into the infant’s room looking for methamphetamine.

As shocking as the case of baby Bounkham is, no one should be surprised that empowering police to stop consensual (though perhaps harmful and immoral) activities has led to a growth of authoritarian attitudes and behaviors among government officials and politicians. Those wondering why the local police increasingly look and act like an occupying military force should consider that the drug war was the justification for the Defense Department’s “1033 program,” which last year gave local police departments almost $450 million worth of “surplus” military equipment. This included armored vehicles and grenades like those that were used to maim baby Bounkham.

Today, the war on drugs has been eclipsed by the war on terror as an all-purpose excuse for expanding the police state. We are all familiar with how the federal government increased police power after September 11 via the PATRIOT Act, TSA, and other Homeland Security programs. Not as widely known is how the war on terror has been used to justify the increased militarization of local police departments to the detriment of our liberty. Since 2002, the Department of Homeland Security has provided over $35 billion in grants to local governments for the purchase of tactical gear, military-style armor, and mine-resistant vehicles.

The threat of terrorism is used to justify these grants. However, the small towns that receive tanks and other military weapons do not just put them into storage until a real terrorist threat emerges. Instead, the military equipment is used for routine law enforcement.

Politicians love this program because it allows them to brag to their local media about how they are keeping their constituents safe. Of course, the military-industrial complex’s new kid brother, the law enforcement-industrial complex, wields tremendous influence on Capitol Hill. Even many so-called progressives support police militarization to curry favor with police unions.

Reversing the dangerous trend of the militarization of local police can start with ending all federal involvement in local law enforcement. Fortunately, all that requires is for Congress to begin following the Constitution, which forbids the federal government from controlling or funding local law enforcement. There is also no justification for federal drug laws or for using the threat of terrorism as an excuse to treat all people as potential criminals. However, Congress will not restore constitutional government on its own; the American people must demand that Congress stop facilitating the growth of an authoritarian police state that threatens their liberty.




via Zero Hedge http://ift.tt/1BWZwh6 Tyler Durden

Forensic Expert Says Foley Murder Video “May Have Been Staged”

While there have been many suggestions, some of very dubious nature others not so much, that the ISIS video showing the execution of James Foley may have been staged, faked or otherwise fabricated (especially after Scotland Yard warned that sharing or merely viewing the infamous YouTube clip of Foley’s murder is a crime and is punishable under anti-terror laws, stunning virtually everyone), it wasn’t until today that an actual forensic expert opined – apparently one who isn’t afraid of the criminal charges headed their way – that something may be wrong with the 4 minute 40-second clip. The Telegraph reports that an “international forensic science company which has worked for police forces across Britain, suggested camera trickery and slick post-production techniques appear to have been used.”

While the expert analysis does not deny that the video ends with the death of Foley, it alleges that the execution itself may have been staged, “with the actual murder taking place off-camera.” In other words, the implication is that the British jihadist in the film may have been the frontman rather than the killer. Which also means that the manic scramble that has gripped the UK to identify “Jihadi John” may be one giant misdirection whose purpose is not quite clear.

The Telegraph continues:

A forensic analyst told The Times that no blood can be seen, even though the knife is drawn across the neck area at least six times.

 

“After enhancements, the knife can be seen to be drawn across the upper neck at least six times, with no blood evidence to the point the picture fades to black,” the analysis said.

 

Sounds allegedly made by Foley do not appear consistent with what may be expected.

 

During Foley’s speech, there appears to be a blip which could indicate the journalist had to repeat a line.

 

One expert commissioned to examine the footage was reported as saying: “I think it has been staged. My feeling is that the execution may have happened after the camera was stopped.”

 

However the company, which requested anonymity, did not reach a definitive answer.

Nonetheless, it concluded: “No one is disputing that at some point an execution occurred.”

Still, if even one part of the clip is questioned, it opens up a whole can of worms, with a plethora of questions suddenly demanding an answer: why the manic pursuit to prohibit dissemination and viewing of the video? After all, over a decade ago the beheading of Daniel Pearl by Al Qaeda also was available on the web, and there was no talk of criminal charges against anyone who shared the video, let alone merely viewed it. Also, why fake the execution scene, and what goal does ISIS really pursue with the release of the tape? Finally, if indeed the video was staged and “post-produced”, who was directing, and why?

And then, if one proceeds along this path of asking questions, there many other, far more “conspiratorial” questions emerge if the coherent plotline behind the video as presented for public consumption, or rather the prohibition thereof, unravels. But we will leave those for another night.




via Zero Hedge http://ift.tt/1lakcgb Tyler Durden