Friday, June 27, 2008

The Subprime Trump Card: Standing up to the Banks

Go to Original
By Dr. Ellen Brown



"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."




– Thomas Jefferson, Letter to Treasury Secretary Albert Gallatin (1802)


Jefferson had it right. More than 1.5 million homeowners are expected to enter foreclosure this year, and about half of them are expected to have their homes repossessed. If the dire consequences Jefferson warned of 200 years ago have been slow in coming, it is because they have been concealed by what Jerome a Paris calls the Anglo Disease – "the highly unequal economy whereby the rich and the financial sector . . . capture most of the income but hide it by providing cheap debt to the middle classes so that they can continue to spend." He calls "finance" the "cannibalistic" sector in today’s economy. Writing in The European Tribune this month, he states:




"[O]ne of the more attractive features of the financial world, for its promoters, is its ability to concentrate huge fortunes in a small number of hands, and promote this as a good thing (these people are said to be creating wealth, rather than capturing it). . . . [O]f course, the reality is that such wealth concentration is created by squeezing the rest, as is obvious in the stagnation of incomes for most in the middle and lower rungs of society. This is not so much wealth creation as wealth redistribution, from the many to the few. But what has made this unequality . . . tolerable is that the financial world itself was able to provide a convenient smokescreen, in the form of cheap debt, provided in abundance to all. The wealthy used it to grab real assets in funny money, and the rest were kindly allowed to keep on spending by tapping their future income rather than their insufficient current one; in a nutshell, the debt bubble hid the class warfare waged by the rich against everybody else . . . ."1


Now the debt bubble is bursting, with the anticipated real estate crash, banking crisis, foreclosures, and inevitable recession. "The income capture mechanisms set up during the bubble have not been reversed, so the pain is falling disproportionately on the poorest," writes Jerome a Paris. Meanwhile, finance is being bailed out. What’s to be done? "[T]he financiers . . . will say that more ‘reform’ and ‘deregulation’ and tax cuts are needed," he says, but "maybe it’s time to stop listening to what is highly self-interested drivel, and take back what they grabbed: it’s not theirs."


Good idea, but how? The financiers own the media, and their massively funded lobbies control Congress. How can we the people get enough clout to take on the giant financial and corporate giants? What can we do that will make politicians sit up and take notice?


How about swarming the courts? New case law indicates that a majority of the 750,000 homeowners expected to lose their homes this year could have a valid defense to foreclosure. As much as $2 trillion in real estate may be vulnerable to this defense, providing a very big stick for a lobby of motivated debtors. Mobilizing that group, in turn, could light a fire under the investors in mortgage-backed securities -- the pension funds, money market funds and insurance companies holding these "orphan" mortgages. These investors also wield a very big stick, in the form of major law firms on retainer. When the embattled banks demand a bailout because they are "too big to fail," the taxpayers can respond, "You have already failed. It is time to try something new."



The Legal Trump Card: Make Them Produce the Note


A basic principle of contract law is that a plaintiff suing on a written contract must produce the signed contract proving he is entitled to relief. If there is no signed mortgage note or recorded assignment, foreclosure is barred. The defendant must normally raise this defense, and most defaulting homeowners, unaware of legal procedure and concerned about the expense of hiring an attorney, just let their homes go uncontested. But when the plaintiffs bringing subprime foreclosure actions have been challenged, in most cases they haven’t been able to produce the notes.


Why not? It appears to be more than just sloppy paperwork. The banks that originally entered into these risky subprime arrangements generally did so because they had no intention of holding the loans on their books. The mortgages were immediately sliced and diced, bundled up as mortgage-backed securities (MBS), and sold off to investors. Loan originators sold the mortgages to financial institutions or other banks, which then sold the rights to the monthly mortgage payment income to investors, while transferring the responsibility to collect these payments to specialized mortgage servicing companies. The result has been to slice up the mortgage contract, with no party really having ownership of the original paperwork. When foreclosure has been initiated, the servicer or trustee acting as plaintiff now has trouble proving that it originated the mortgage or owned the loan. In order for a second bank or financial institution to have standing to bring a foreclosure lawsuit in court, it must have been assigned the mortgage; and with the collapse of the housing market, many of the subprime lenders have gone out of business, making it impossible to contact the originating mortgage company. Other paperwork has just been lost in the shuffle.2


Why weren’t the mortgage notes assigned to the MBS holders when they were first sold? Apparently because the investors aren’t even matched up with specific properties until after default. Here is how the MBS scheme works: when the mortgages are first bundled by the banks, all of the subprime mortgages go into the same pool. The bundled mortgages are chopped into "securities" that are sold to many investors -- banks, hedge funds, money market funds, pension funds -- with different "tranches" or levels of risk. The first mortgages to default are then assigned to the high-risk "BBB-" tranche of investors. As defaults increase, later defaulting mortgages are assigned down the chain of risk to the supposedly more secure tranches.3 That means the investors get the mortgages only after the defendants breached the agreement to pay.


It also means the investors weren’t a party to the agreement when it was breached, making it hard to prove they were injured by the breach.


The investors have another problem: the delay in assigning particular mortgages to particular investors means there was no "true sale" of the security (the home) at the time of securitization. A true sale of the collateral is a legal requirement for forming a valid security (a secured interest in the property as opposed to simply a debt obligation backed by collateral). As a result, the investors may have trouble proving they have any interest in the property, secured or unsecured.4


The Dog-Ate-My-Note Defense


When the securitizing banks acting as trustees for the investors are unable to present written proof of ownership at a time that would entitle them to foreclose, they typically file what’s called a lost-note affidavit. April Charney is a Florida legal aid attorney well versed in these issues, having gotten foreclosure proceedings dismissed or postponed for 300 clients in the past year. In a February 2008 Bloomberg article, she was quoted as saying that about 80 percent of these cases involved lost-note affidavits. "Lost-note affidavits are pattern and practice in the industry," she said. "They are not exceptions. They are the rule."3


In the past, judges have let these foreclosures proceed; but in October 2007, an intrepid federal judge in Cleveland put a halt to the practice. U.S. District Court Judge Christopher Boyko ruled that Deutsche Bank had not filed the proper paperwork to establish its right to foreclose on fourteen homes it was suing to repossess.4 That started the ball rolling, and by February 2008, judges in at least five states had followed suit. In Los Angeles in January, U.S. Bankruptcy Judge Samuel L. Bufford issued a notice warning plaintiffs in foreclosure cases to bring the mortgage notes to court and not submit copies. In Ohio, where foreclosures were up by a reported 88 percent in 2007, Attorney General Marc Dann was reported to be challenging ownership of mortgage notes in forty foreclosure cases.5


Few defendants, however, are lucky enough to have advocates like Charney and Dann in their corner, and most defaulting debtors just let their homes go. A simple challenge can be filed to the complaint even without an attorney, and some subprime borrowers have successfully defended their own foreclosure actions; but retaining an attorney is strongly recommended. People representing themselves are often not taken seriously, and they are likely to miss local rule requirements. With that warning, here is some general information on challenging standing to foreclose:


Some states are judicial foreclosure states and some are non-judicial foreclosure states. In a judicial foreclosure state (meaning the matter is heard before a judge), if a promissory note or recorded assignment naming the plaintiff is not attached to the complaint, the defendant can file a response stating the plaintiff has failed to state a claim. This can be followed with a motion called a demurrer to the complaint. Different forms of demurrers can be found in legal form books in most law libraries. In essence the demurrer states that even if everything in the complaint were true, the complaint would lack substance because it fails to set out a copy of the note, and it should therefore be dismissed. Ordinarily there is no need to cite much in the way of statutes or case law other than the authority reciting the necessity of showing the note proving the plaintiff is entitled to relief.


In a non-judicial foreclosure state such as California, foreclosure is done by a trustee without a court hearing, so the procedure is a bit trickier; but standing to foreclose can still be challenged. If the homeowner has filed for bankruptcy, the proceedings are automatically stayed, requiring the lender to bring a motion for relief from stay before going forward. The debtor can then challenge the lender’s right to the security (the house) by demanding proof of a legal or equitable interest in it.6 A homeowner facing foreclosure can also get the matter before a court without filing for bankruptcy by filing a complaint and preliminary injunction staying the proceedings pending proof of standing to foreclose. A judge would then have to rule on the merits. A complaint for declaratory relief might also be brought against the trustee, seeking to have its rights declared invalid.7


An Equitable Settlement for Everyone


These defenses can help people who are about to lose their homes, but there is another class of victims in the sub-prime mortgage crisis: investors in MBS, including the pension funds and 401Ks on which many people depend for their retirement. If the trustees representing the investors cannot foreclose, the lucky debtors may be able to stay in their homes without paying. However, the hapless investors will be left holding the bag. If the investors manage to shift liability back to the banks, on the other hand, the banks could go down and take the economy with them. How can these tricky issues be resolved in a way that is equitable for all? That question will be addressed in a followup article. Stay tuned.

NOTES


1
. Jerome a Paris, "Countdown to $200 Oil Meets Anglo Disease," European Tribune (June 7, 2008).

2 "Contesting a Foreclosure Lawsuit: Who Owns the Mortgage?", ForeclosureFish.com (April 22, 2008).

3
. CNBC, "Subprime Derivatives," youtube.com/watch?v=0YNyn1XGyWg (June 2007).

4 Vinod Kothari, "The True Sale Question," vindkothari.com.

3
. Bob Ivry, "Banks Lose to Deadbeat Homeowners as Loans Sold in Bonds Vanish," Bloomberg.com (February 22, 2008).

4
. Judge Christopher A. Boyko, Opinion and Order, In re Foreclosure Cases, Case 1:07-cv-02282-CAB, U.S. District Court, Northern District of Ohio, Eastern Division, filed 10/31/2007.

5
. B. Ivry, op. cit.; Jimmy Higgins, "Judge Boyko’s Snowball Starts Rolling Downhill," Fire on the Mountain (blogspot) (February 26, 2008); Wendy Davis, "Finding It Hard to Be a Loan," ABA Journal (March 2008).

6
. "More Trouble for Mortgage Securitizers?", http://bigpicture.typepad.com (December 9, 2007

7. Aaron Krowne, et al., "True Sale, False Securitizations," iamfacingforeclosure.com (November)

State-Sponsored Terror: British and American Black Ops in Iraq

Go to Original
By Andrew G. Marshall

Shining Light on the "Black World"

In January of 2002, the Washington Post ran a story detailing a CIA plan put forward to President Bush shortly after 9/11 by CIA Director George Tenet titled, "Worldwide Attack Matrix," which was "outlining a clandestine anti-terror campaign in 80 countries around the world. What he was ready to propose represented a striking and risky departure for U.S. policy and would give the CIA the broadest and most lethal authority in its history." The plan entailed CIA and Special Forces "covert operations across the globe," and at "the heart of the proposal was a recommendation that the president give the CIA what Tenet labeled "exceptional authorities" to attack and destroy al Qaeda in Afghanistan and the rest of the world." Tenet cited the need for such authority "to allow the agency to operate without restraint -- and he wanted encouragement from the president to take risks." Among the many authorities recommended was the use of "deadly force."


Further, "Another proposal was that the CIA increase liaison work with key foreign intelligence services," as "Using such intelligence services as surrogates could triple or quadruple the CIA’s effectiveness." The Worldwide Attack Matrix "described covert operations in 80 countries that were either underway or that he was now recommending. The actions ranged from routine propaganda to lethal covert action in preparation for military attacks," as well as "In some countries, CIA teams would break into facilities to obtain information."[1]


P2OG: "Commit terror, to incite terror… in order to react to terror"


In 2002, the Pentagon’s Defense Science Board (DSB) conducted a "Summer Study on Special Operations and Joint Forces in Support of Countering Terrorism," portions of which were leaked to the Federation of American Scientists. According to the document, the "War on Terror" constitutes a "committed, resourceful and globally dispersed adversary with strategic reach," which will require the US to engage in a "long, at times violent, and borderless war." As the Asia Times described it, this document lays out a blueprint for the US to "fight fire with fire." Many of the "proposals appear to push the military into territory that traditionally has been the domain of the CIA, raising questions about whether such missions would be subject to the same legal restraints imposed on CIA activities." According to the Chairman of the DSB, "The CIA executes the plans but they use Department of Defense assets."


Specifically, the plan "recommends the creation of a super-Intelligence Support Activity, an organization it dubs the Proactive, Preemptive Operations Group (P2OG), to bring together CIA and military covert action, information warfare, intelligence and cover and deception. For example, the Pentagon and CIA would work together to increase human intelligence (HUMINT) forward/operational presence and to deploy new clandestine technical capabilities." The purpose of P2OG would be in "‘stimulating reactions’ among terrorists and states possessing weapons of mass destruction, meaning it would prod terrorist cells into action, thus exposing them to ‘quick-response’ attacks by US forces."[2] In other words, commit terror to incite terror, in order to react to terror.


The Los Angeles Times reported in 2002 that, "The Defense Department is building up an elite secret army with resources stretching across the full spectrum of covert capabilities. New organizations are being created. The missions of existing units are being revised," and quoted then-Defense Secretary Donald Rumsfeld as saying, "Prevention and preemption are ... the only defense against terrorism."[3] Chris Floyd bluntly described P2OG in CounterPunch, saying, "the United States government is planning to use "cover and deception" and secret military operations to provoke murderous terrorist attacks on innocent people. Let’s say it again: Donald Rumsfeld, Dick Cheney, George W. Bush and the other members of the unelected regime in Washington plan to deliberately foment the murder of innocent people--your family, your friends, your lovers, you--in order to further their geopolitical ambitions."[4]



"The Troubles" with Iraq


On February 5, 2007, the Telegraph reported that, "Deep inside the heart of the "Green Zone" [in Iraq], the heavily fortified administrative compound in Baghdad, lies one of the most carefully guarded secrets of the war in Iraq. It is a cell from a small and anonymous British Army unit that goes by the deliberately meaningless name of the Joint Support Group (JSG)." The members of the JSG "are trained to turn hardened terrorists into coalition spies using methods developed on the mean streets of Ulster during the Troubles, when the Army managed to infiltrate the IRA at almost every level. Since war broke out in Iraq in 2003, they have been responsible for running dozens of Iraqi double agents." They have been "[w]orking alongside the Special Air Service [SAS] and the American Delta Force as part of the Baghdad-based counter-terrorist unit known as Task Force Black."


It was reported that, "During the Troubles [in Northern Ireland], the JSG operated under the cover name of the Force Research Unit (FRU), which between the early 1980s and the late 1990s managed to penetrate the very heart of the IRA. By targeting and then "turning" members of the paramilitary organisation with a variety of "inducements" ranging from blackmail to bribes, the FRU operators developed agents at virtually every command level within the IRA." Further, "The unit was renamed following the Stevens Inquiry into allegations of collusion between the security forces and protestant paramilitary groups, and, until relatively recently continued to work exclusively in Northern Ireland."[5]


Considering that this group had been renamed after revelations of collusion with terrorists, perhaps it is important to take a look at what exactly this "collusion" consisted of. The Stevens Inquiry’s report "contains devastating confirmation that intelligence officers of the British police and the military actively helped Protestant guerillas to identify and kill Catholic activists in Northern Ireland during the 1980s." It was, "a state policy sanctioned at the highest level." The Inquiry, "highlighted collusion, the willful failure to keep records, the absence of accountability, the withholding of intelligence, and the extreme of agents being involved in murder," and acknowledged "that innocent people had died because of the collusion." These particular "charges relate to activities of a British Army intelligence outfit known as the Force Research Unit (FRU) and former Royal Ulster Constabulary (RUC) police officers."[6]


In 2002, the Sunday Herald reported on the allegations made by a former British intelligence agent, Kevin Fulton, who stated that, "he was told by his military handlers that his collusion with paramilitaries was sanctioned by Margaret Thatcher herself." Fulton worked for the Force Research Unit (FRU), and had infiltrated the IRA, always while on the pay roll of the military. Fulton tells of how in 1992, he told his FRU and MI5 intelligence handlers that his IRA superior was planning to launch a mortar attack on the police, yet his handlers did nothing and the attack went forward, killing a policewoman. Fulton stated, "I broke the law seven days a week and my handlers knew that. They knew that I was making bombs and giving them to other members of the IRA and they did nothing about it. If everything I touched turned to shit then I would have been dead. The idea was that the only way to beat the enemy was to penetrate the enemy and be the enemy."[7]


In 1998, Northern Ireland experienced its "worst single terrorist atrocity," as described by the BBC, in which a car bomb went off, killing 29 people and injuring 300.[8] According to a Sunday Herald piece in 2001, "Security forces didn’t intercept the Real IRA’s Omagh bombing team because one of the terrorists was a British double-agent whose cover would have been blown as an informer if the operation was uncovered." Kevin Fulton had even "phoned a warning to his RUC handlers 48 hours before the Omagh bombing that the Real IRA was planning an attack and gave details of one of the bombing team and his car registration." Further, "The man thought to be the agent is a senior member of the [IRA] organization."[9]


In 2002, it was revealed that, "one of the most feared men inside the Provisional IRA," John Joe Magee, head of the IRA’s "internal security unit," commonly known as the IRA’s "torturer- in-chief," was actually "one of the UK’s most elite soldiers," who "was trained as a member of Britain’s special forces." The Sunday Herald stated that, "Magee led the IRA’s internal security unit for more than a decade up to the mid-90s - most of those he investigated were usually executed," and that, "Magee’s unit was tasked to hunt down, interrogate and execute suspected British agents within the IRA."[10]


In 2006, the Guardian reported that, "two British agents were central to the bombings of three army border installations in 1990." The claims included tactics known as the ‘human bomb’, which "involved forcing civilians to drive vehicles laden with explosives into army checkpoints." This tactic "was the brainchild of British intelligence."[11]


In 2006, it was also revealed that, "A former British Army mole in the IRA has claimed that MI5 arranged a weapons-buying trip to America in which he obtained detonators, later used by terrorists to murder soldiers and police officers," and "British intelligence co-operated with the FBI to ensure his trip to New York in the 1990s went ahead without incident so that his cover would not be blown." Further, "the technology he obtained has been used in Northern Ireland and copied by terrorists in Iraq in roadside bombs that have killed British troops."[12]


Considering all these revelations of British collusion with IRA terrorists and complicity in terrorist acts in Northern Ireland through the FRU, what evidence is there that these same tactics are not being deployed in Iraq under the renamed Joint Support Group (JSG)? The recruits to the JSG in Iraq are trained extensively and those "who eventually pass the course can expect to be posted to Baghdad, Basra and Afghanistan."[13]


P2OG in Action


In September of 2003, months after the initial invasion of Iraq in March 2003, Iraq’s most sacred Shiite mosque was blown up, killing between 80 and 120 people, including a popular Shiite cleric, and the event was blamed by Iraqis on the American forces.[14]


On April 20, 2004, American journalist in Iraq, Dahr Jamail, reported in the New Standard that, "The word on the street in Baghdad is that the cessation of suicide car bombings is proof that the CIA was behind them." Jamail interviewed a doctor who stated that, "The U.S. induces aggression. If you don’t attack me, I will never attack you. The U.S. is stimulating the aggression of the Iraqi people!" This description goes very much in line with the aims outlined in the Pentagon’s P2OG document about "inciting terror," or "preempting terror attacks."[15]


Weeks after the initial incident involving the British SAS soldiers in Basra, in October of 2005, it was reported that Americans were "captured in the act of setting off a car bomb in Baghdad," as, "A number of Iraqis apprehended two Americans disguised in Arab dress as they tried to blow up a booby-trapped car in the middle of a residential area in western Baghdad on Tuesday. … Residents of western Baghdad’s al-Ghazaliyah district [said] the people had apprehended the Americans as they left their Caprice car near a residential neighborhood in al-Ghazaliyah on Tuesday afternoon. Local people found they looked suspicious so they detained the men before they could get away. That was when they discovered that they were Americans and called the … police." However, "the Iraq police arrived at approximately the same time as allied military forces - and the two men were removed from Iraq custody and whisked away before any questioning could take place."[16]

It was reported that in May of 2005, an Iraqi man was arrested after witnessing a car bombing that took place in front of his home, as it was said he shot an Iraqi National Guardsman. However, "People from the area claim that the man was taken away not because he shot anyone, but because he knew too much about the bomb. Rumor has it that he saw an American patrol passing through the area and pausing at the bomb site minutes before the explosion. Soon after they drove away, the bomb went off and chaos ensued. He ran out of his house screaming to the neighbors and bystanders that the Americans had either planted the bomb or seen the bomb and done nothing about it. He was promptly taken away."


Further, another story was reported in the same month that took place in Baghdad when an Iraqi driver had his license and car confiscated at a checkpoint, after which he was instructed "to report to an American military camp near Baghdad airport for interrogation and in order to retrieve his license." After being questioned for a short while, he was told to drive his car to an Iraqi police station, where his license had been forwarded, and that he should go quickly. "The driver did leave in a hurry, but was soon alarmed with a feeling that his car was driving as if carrying a heavy load, and he also became suspicious of a low flying helicopter that kept hovering overhead, as if trailing him. He stopped the car and inspected it carefully. He found nearly 100 kilograms of explosives hidden in the back seat and along the two back doors. The only feasible explanation for this incident is that the car was indeed booby trapped by the Americans and intended for the al-Khadimiya Shiite district of Baghdad. The helicopter was monitoring his movement and witnessing the anticipated ‘hideous attack by foreign elements."[17]


On October 4, 2005, it was reported by the Sydney Morning Herald that, "The FBI’s counterterrorism unit has launched a broad investigation of US-based theft rings after discovering some vehicles used in deadly car bombings in Iraq, including attacks that killed US troops and Iraqi civilians, were probably stolen in the United States, according to senior US Government officials." Further, "The inquiry began after coalition troops raided a Falluja bomb factory last November and found a Texas-registered four-wheel-drive being prepared for a bombing mission. Investigators said there were several other cases where vehicles evidently stolen in the US wound up in Syria or other Middle Eastern countries and ultimately in the hands of Iraqi insurgent groups, including al-Qaeda in Iraq."[18]


In 2006, the Al-Askariya mosque in the city of Samarra was bombed and destroyed. It was built in 944, was over 1,000 years old, and was one of the most important Shi’ite mosques in the world. The great golden dome that covered it, which was built in 1904, was destroyed in the 2006 bombing, which was set off by men dressed as Iraqi Special Forces.[19] Former 27-year CIA analyst who gave several presidents their daily CIA briefings, Ray McGovern, stated that he "does not rule out Western involvement in this week’s Askariya mosque bombing." He was quoted as saying, "The main question is Qui Bono? Who benefits from this kind of thing? You don’t have to be very conspiratorial or even paranoid to suggest that there are a whole bunch of likely suspects out there and not only the Sunnis. You know, the British officers were arrested, dressed up in Arab garb, riding around in a car, so this stuff goes on."[20]


Death Squads for "Freedom"


In January of 2005, Newsweek reported on a Pentagon program termed the "Salvador Option" being discussed to be deployed in Iraq. This strategy "dates back to a still-secret strategy in the Reagan administration’s battle against the leftist guerrilla insurgency in El Salvador in the early 1980s. Then, faced with a losing war against Salvadoran rebels, the U.S. government funded or supported "nationalist" forces that allegedly included so-called death squads directed to hunt down and kill rebel leaders and sympathizers." Updating the strategy to Iraq, "one Pentagon proposal would send Special Forces teams to advise, support and possibly train Iraqi squads, most likely hand-picked Kurdish Peshmerga fighters and Shiite militiamen, to target Sunni insurgents and their sympathizers, even across the border into Syria, according to military insiders familiar with the discussions."[21]


The Times reported that, "the Pentagon is considering forming hit squads of Kurdish and Shia fighters to target leaders of the Iraqi insurgency in a strategic shift borrowed from the American struggle against left-wing guerrillas in Central America 20 years ago. Under the so-called ‘El Salvador option’, Iraqi and American forces would be sent to kill or kidnap insurgency leaders." It further stated, "Hit squads would be controversial and would probably be kept secret," as "The experience of the so-called "death squads" in Central America remains raw for many even now and helped to sully the image of the United States in the region." Further, "John Negroponte, the US Ambassador in Baghdad, had a front-row seat at the time as Ambassador to Honduras from 1981-85."[22]


By June of 2005, mass executions were taking place in Iraq in the six months since January, and, "What is particularly striking is that many of those killings have taken place since the Police Commandos became operationally active and often correspond with areas where they have been deployed."[23]


In May of 2007, an Iraqi who formerly collaborated with US forces in Iraq for two and a half years stated that, "I was a soldier in the Iraqi army in the war of 1991 and during the withdrawal from Kuwait I decided to seek asylum in Saudi Arabia along with dozens of others like me. That was how began the process whereby I was recruited into the American forces, for there were US military committees that chose a number of Iraqis who were willing to volunteer to join them and be transported to America. I was one of those." He spoke out about how after the 2003 invasion, he was returned to Iraq to "carry out specific tasks assigned him by the US agencies." Among those tasks, he was put "in charge of a group of a unit that carried out assassinations in the streets of Baghdad."


He was quoted as saying, "Our task was to carry out assassinations of individuals. The US occupation army would supply us with their names, pictures, and maps of their daily movements to and from their place of residence and we were supposed to kill the Shi’i, for example, in the al-A’zamiyah, and kill the Sunni in the of ’Madinat as-Sadr’, and so on." Further, "Anyone in the unit who made a mistake was killed. Three members of my team were killed by US occupation forces after they failed to assassinate Sunni political figures in Baghdad." He revealed that this "dirty jobs" unit of Iraqis, Americans and other foreigners, "doesn’t only carry out assassinations, but some of them specialize in planting bombs and car bombs in neighborhoods and markets."


He elaborated in saying that "operations of planting car bombs and blowing up explosives in markets are carried out in various ways, the best-known and most famous among the US troops is placing a bomb inside cars as they are being searched at checkpoints. Another way is to put bombs in the cars during interrogations. After the desired person is summoned to one of the US bases, a bomb is place in his car and he is asked to drive to a police station or a market for some purpose and there his car blows up."[24]


Divide and Conquer?


Craig Murray, former British Ambassador to Uzbekistan, wrote in October of 2006, that, "The evidence that the US directly contributed to the creation of the current civil war in Iraq by its own secretive security strategy is compelling. Historically of course this is nothing new - divide and rule is a strategy for colonial powers that has stood the test of time. Indeed, it was used in the previous British occupation of Iraq around 85 years ago. However, maybe in the current scenario the US just over did it a bit, creating an unstoppable momentum that, while stalling the insurgency, has actually led to new problems of control and sustainability for Washington and London."[25]

Andrew G. Marshall contributed to breaking the Climate Change consensus in a celebrated 2006 article entitled Global Warming A Convenient Lie, in which he challenged the findings underlying Al Gore’s documentary. According to Marshall, ’as soon as people start to state that “the debate is over”, beware, because the fundamental basis of all sciences is that debate is never over’. Andrew Marshall has also written on the militarization of Central Africa, national security issues and the process of integration of North America. He is also a contributor to GeopoliticalMonitor.com He is currently a researcher at the Centre for Research on Globalization (CRG) in Montreal and is studying political science and history at Simon Fraser University, British Columbia.

NOTES


[1] Bob Woodward and Dan Balz, At Camp David, Advise and Dissent. The Washington Post: January 31, 2002: http://www.washingtonpost.com/wp-dyn/content/article/2006/07/18/AR2006071800702.html


[2] David Isenberg, ‘P2OG’ Allows the Pentagon to Fight Dirty. Asia Times Online: November 5, 2002: http://www.atimes.com/atimes/Middle_East/DK05Ak02.html


[3] William M. Arkin, The Secret War. The Los Angeles Times: October 27, 2002: http://web.archive.org/web/20021031092436/http://www.latimes.com/la-op-arkin27oct27001451,0,7355676.story


[4] Chris Floyd, Into the Dark: The Pentagon Plan to Provoke Terrorist Attacks. Counter Punch: November 1, 2002: http://www.counterpunch.org/floyd1101.html


[5] Sean Rayment, Top Secret Army Cell Breaks Terrorists. The Telegraph: February 5, 2007: http://www.telegraph.co.uk/news/uknews/1541542/Top-secret-army-cell-breaks-terrorists.html


[6] Michael S. Rose, Britain’s "Dirty War" with the IRA. Catholic World News: July 2003: http://www.cwnews.com/news/viewstory.cfm?recnum=23828


[7] Home Affairs, The army asked me to make bombs for the IRA, told me I had the Prime Minister’s Blessing. The Sunday Herald: June 23, 2002: http://findarticles.com/p/articles/mi_qn4156/is_20020623/ai_n12576952/pg_2


[8] BBC, UK: Northern Ireland Bravery awards for bomb helpers. BBC News: November 17, 1999: http://news.bbc.co.uk/2/hi/uk_news/northern_ireland/524462.stm


[9] Neil Mackay, British double-agent was in Real IRA’s Omagh bomb team. The Sunday Herald: August 19, 2001: http://findarticles.com/p/articles/mi_qn4156/is_20010819/ai_n13961517


[10] Neil Mackay, IRA torturer was in the Royal Marines; Top republican terrorist. The Sunday Herald: December 15, 2002: http://findarticles.com/p/articles/mi_qn4156/is_20021215/ai_n12579493


[11] Henry McDonald, UK agents ’did have role in IRA bomb atrocities’. The Guardian: September 10, 2006: http://www.guardian.co.uk/politics/2006/sep/10/uk.northernireland1


[12] Enda Leahy, MI5 ’helped IRA buy bomb parts in US’. Sunday Times: March 19, 2006: http://www.timesonline.co.uk/tol/news/uk/article742783.ece


[13] Sean Rayment, Top Secret Army Cell Breaks Terrorists. The Telegraph: February 5, 2007: http://www.telegraph.co.uk/news/uknews/1541542/Top-secret-army-cell-breaks-terrorists.html


[14] AP, U.S. Blamed For Mosque Attack. CBS News: September 2, 2003: http://www.cbsnews.com/stories/2003/09/02/iraq/main571279.shtml


[15] Dahr Jamail, Dahr Jamail Blog From Baghdad. The New Standard: April 20, 2004: http://www.countercurrents.org/iraq-jamail200404.htm


[16] FMNN, UNITED STATES CAUGHT IN IRAQ CAR-BOMBING. Free Market News Network: October 14, 2005: http://www.freemarketnews.com/WorldNews.asp?nid=1326


[17] Michael Keefer, Were British Special Forces Soldiers Planting Bombs in Basra? Global Research: September 25, 2005: http://www.globalresearch.ca/index.php?context=viewArticle&code=KEE20050925&articleId=994


[18] Bryan Bender, Cars stolen in US used in suicide attacks. The Sydney Morning Herald: October 4, 2005: http://www.smh.com.au/news/world/cars-stolen-in-us-used-in-suicide-attacks/2005/10/03/1128191658703.html


[19] Sam Knight, Bombing of Shia shrine sparks wave of retaliation. The Times Online: February 22, 2006: http://www.timesonline.co.uk/tol/news/world/iraq/article733559.ece


[20] Prison Planet, Former CIA Analyst: Western Intelligence May Be Behind Mosque Bombing. Prison Planet: February 26, 2006: http://www.prisonplanet.com/articles/february2006/260206mosquebombing.htm


[21] Michael Hirsh and John Barry, "The Salvador Option". Newsweek: January 14, 2005: http://www.pagecache.info/pagecache/page13480/cached.html


[22] Roland Watson, El Salvador-style ’death squads’ to be deployed by US against Iraq militants. The Times Online: January 10, 2005: http://www.timesonline.co.uk/tol/news/world/iraq/article410491.ece


[23] Max Fuller, For Iraq, "The Salvador Option" Becomes Reality. Global Research: June 2, 2005: http://www.globalresearch.ca/articles/FUL506A.html


[24] AMSII, Ordered Assassinations, Sectarian Bomb Attacks Targeting Iraqi Civilians. Association of Muslim Scholars in Iraq: May 12, 2007: http://heyetnet.org/en/content/view/490/27


[25] Craig Murray, Civil War in Iraq: The Salvador Option and US/UK Policy. CraigMurray.org: October 18, 2006: http://www.craigmurray.org.uk/archives/2006/10/civil_war_in_ir.html

Time for a Grand Inquest into Bush's High Crimes

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By Robert Borosage

One of House Speaker Nancy Pelosi’s first acts upon taking the gavel was to rule impeachment off the table. She wanted Democrats to focus on challenging the president on the war and on kitchen table concerns — from energy to education to health care. With Democrats now enjoying an increasing margin in generic polls and looking towards gaining seats in both the House and the Senate, the strategy certainly hasn’t hurt politically.


But the constitutional implications are far more disturbing. This was dramatized as the Congress debated the Foreign Intelligence Surveillance Act reform legislation that will provide retroactive immunity to the telecommunications companies for warrantless interception of the conversations of Americans — and by implication, retroactive acceptance of the president’s authority to order such wiretaps.


We have witnessed a staggering abuse of power by President Bush. Even former Bush Justice Department officials now charge him with trampling the Constitution. Bush has claimed the prerogative to declare an endless war without congressional approval, to designate someone an enemy without cause, to proceed to wiretap them without warrant, arrest or kidnap them at will, jail them without a hearing, hold them indefinitely, interrogate them intensively (read torture), bring them to trial outside the U.S. court system. He claims that executive privilege exempts his aides — even the aides of his aides and his vice president’s aides — from congressional investigation. He claims the right to amend or negate congressional laws with a statement upon signing them. And much more.


Even this Supreme Court, stacked with activist right-wing judges enamored of executive national security powers, has rebuked the president on some of these claims, particularly around the treatment of alleged enemy combatants. But many of Bush’s claims will escape judicial determination.


And there is the rub. According to the leading case on presidential powers, if Bush’s extreme assertions of power are not challenged by the Congress, they end up not simply creating new law, they could end up rewriting the Constitution itself. Inaction can alter the Constitutional division of powers by establishing the president’s claims as authority that the Congress or the courts may not infringe.


The Steel Seizure case — Youngstown Sheet and Tube v Sawyer, 343 U.S. 579 (1952), remains the leading case on presidential power. In Youngstown, a six-member majority of the Court joined in overturning President Truman’s executive order nationalizing the steel plants to end a strike during the Korean War. Justice Black wrote the opinion for the Court, but the historically influential opinions were penned by Justices Robert H. Jackson and Felix Frankfurter, both Democratic appointees. Frankfurter laid out the argument for a sort of common law of constitutional amendment:



Deeply embedded traditional ways of conducting government cannot supplant the Constitution or legislation, but they give meaning to the words of a text or supply them. It is an inadmissibly narrow conception of American constitutional law to confine it to the words of the Constitution and to disregard the gloss which life has written upon them. In short, a systematic, unbroken, executive practice, long pursued to the knowledge of the Congress and never before questioned, engaged in by Presidents who have also sworn to uphold the Constitution, making as it were such exercise of power part [343 U.S. 579, 611] of the structure of our government, may be treated as a gloss on "executive Power" vested in the President by 1 of Art. II.


In Youngstown, Jackson concurred, arguing that the president’s powers vary as to whether he acts with congressional authority (his greatest power), in the absence of it, or in opposition to it:



When the president acts in absence of either a congressional grant or denial of authority, he can only rely upon his own independent powers, but there is a zone of twilight in which he and Congress may have concurrent authority, or in which its distribution is uncertain. Therefore, congressional inertia, indifference or quiescence may sometimes, at least as a practical matter, enable, if not invite, measures on independent presidential responsibility. In this area, any actual test of power is likely to depend on the imperatives of events and contemporary imponderables rather than on abstract theories of law.


When a president egregiously abuses his power — particularly in areas relating to the rights of American citizens — remedies are often difficult. The Supreme Court is reluctant to arbitrate a power struggle between two co-equal branches. That is why the Constitution prescribes the specific remedy of impeachment for crimes and abuses of power — "high crimes and misdemeanors" — and empowers the House and Senate to sit in judgment whether the actions are to be accepted or condemned.


What the Court said in Youngstown is that if presidents assert a prerogative, such the power to make war without a congressional declaration — systematically, with unbroken regularity, with the knowledge of the Congress and are never questioned — then that practice becomes a Constitutional power that cannot be infringed upon by the Congress or the Courts.


Thus, Congress must formally object to President Bush’s abuses or it risks by "indifference or quiescence" contributing to the powers of our imperial presidency.


When Pelosi took impeachment off the table, impeachment was reduced to being a rhetorical protest vehicle for progressives like Dennis Kucinich or Russ Feingold. But Congress need not convict President Bush to impeach him for high crimes and misdemeanors. And arguably, the House need not even impeach the president to hold a grand inquest into the powers that he has claimed, registering a formal objection to them. The Judiciary Committee in the House should formally convene that inquest, no matter what the decision is on impeachment. For if Pelosi’s sensible political judgment results, as it has to date, in a show of congressional "inertia, indifference or quiescence," the Democratic majority in Congress may have gained a dozen seats at the cost of relinquishing its own powers, and putting the rights of Americans at risk.

FISA Vote Tied to Telecom Donations

Go to Original
By Mike Lillis

Supporters of the Spying Bill Received Twice the Contributions as Those Against It

When scores of House Democrats joined Republicans last week to reauthorize a controversial White House spying program, many critics attributed that support to election-year jitters. But as liberal voters continue to bash Democrats on the issue, some campaign finance reformers charge that political contributions from the telecom industry, which benefited handsomely under the bill, probably also swayed votes.

In an analysis released Tuesday, Maplight.org, a nonprofit campaign finance watchdog group, found that lawmakers voting Friday in support of the wiretap deal averaged roughly twice the donations from the nation's leading telecoms -- Verizon, Sprint and AT&T -- over the last three years as those voting against it.

The figures might not have raised eyebrows except that the proposal contained a gift for the industry, effectively granting retroactive legal immunity to the telecoms that enabled the Bush administration's warrantless eavesdropping program. The immunity provision -- blasted by civil libertarians for putting industry concerns above Fourth Amendment rights against search and seizure -- rescues the companies from the roughly 40 lawsuits pending against them. Some money-in-politics watchdogs say the connection between the contributions and votes is no accident.

The money-in-politics debate is hardly new to Washington, but it has taken on greater urgency as both political contributions and federal budgets grow larger with each passing year. Under the current system, lawmakers have become ever more reliant on campaign coffers to maintain their hold on power. Industry, meanwhile, is under constant pressure to be at the negotiation table when related legislation is being crafted on Capitol Hill. Money is often the quickest way to gain that seat. This combination of factors has created a near symbiotic relationship between Congress and industry, often lending a sense that business interests take priority over citizens' concerns.

"It's not a dollar given and a vote bought," said Meredith McGehee, policy director at the Campaign Legal Center, a nonprofit campaign finance reform advocate, "but it is a system where large industries can gain influence and direct how policy is decided."

The shame, McGehee said, is that the campaign-finance system leads to conflict-of-interest questions even when none exist. "That undermines confidence in the legislative process," she stated.

Mary Boyle, a spokeswoman with Common Cause, echoed the message. "We certainly know that contributions go a long way to gaining access and influence," she said. "The appearance is that money buys votes."

Maplight's analysis, crunched using contribution data from the Center for Responsive Politics, found that the 293 House members voting last week in favor of the wiretapping compromise received, on average, more than double the amount of money as those who voted against it. They got $9,659 from Verizon, AT&T and Sprint between January 2005 and March 2008, while those voting against got $4,810.

But some campaign finance experts warned against linking campaign donations to votes. "It's way too simplistic just to look at money given to a candidate and claim it's affected a particular vote," said Richard L. Hasen, a professor at Loyola Law School in Los Angeles specializing in election law. "It's something that's often alleged, but much harder to prove."

"There does seem to be a correlation between telecom money and the way people voted," Massie Ritsch, spokesman for the Center for Responsive Politics, said in an email, "but as in all cases when you're following the money, causation is nearly impossible to establish."

Indeed, in the case of the spying proposal, 94 of the 105 Democrats voting for the bill had supported an earlier House proposal to renew the spying law without granting retroactive immunity to the telecoms. House Speaker Nancy Pelosi (D-Cal.), one of those 94, made clear that she opposed telecom immunity, but was forced to accept a compromise for the sake of passing a bill. The immunity language was a concession to the White House, which threatened to veto any bill without it.

"I do not believe that Congress should be in the business of interfering with ongoing lawsuits and attempting to grant immunity to telecommunications companies that allegedly violated the law," Pelosi said on the chamber floor last week. "Those companies have not lived up to the standards expected by the American people … They come out of this with a taint."

In return, Democrats included language previously opposed by the administration, including a clarification that the president has no authority outside the 1978 Foreign Intelligence Surveillance Act to collect foreign-to-domestic communications, even in times of war.

The Senate is expected to pass the bill on Wednesday.

Not all Democrats felt the compromise language was worth the sacrifice of civil liberties.

"I have consistently said that it is not appropriate for Congress to grant these companies immunity for their actions without having an understanding of what it is that they did," said Rep. John Dingell (D-Mich.), chairman of the House Energy and Commerce Committee. "This is not only because it will hold the telecommunications companies accountable for their actions, but because it is the only way of finding out just how extensive the president's illegal wiretapping program really was."

Liberal voters have lit up the blogosphere in agreement, charging that Democrats caved to White House demands at the expense of constitutional rights. Some civil liberties advocates also placed blame on the congressional leaders.

"This is all part of the abuse of power that we've seen out of this White House, as well as Congress' refusal to stand up and perform its constitutional duty to check the executive branch," said Boyle of Common Cause. "Congress is complicit here."