The story of the suppressed 28 pages and the Saudi role in terrorism, has broken in both the Chinese and Russian press in the past 36 hours, and it is also breaking out in some new locations inside the U.S.

• The English-language edition of the Chinese semi-official paper, Global Times, ran an article yesterday, “Saudi ties to September 11 attacks still suppressed by official mandate,” by Cliff Kiracofe. It reports on last week’s press conference and Kiracofe’s discussions with the principals at the press conference. Kiracofe says of the 28 pages:

“The report shows that factions within Saudi Arabia financed and organized the 9/11 attacks. This point was made clear at the press conference.”
He notes the spreading press coverage of the 28 pages, and concludes: “The Paris events make it ever more urgent that the White House make public the suppressed pages on the sources of Islamic terrorism.”

• RT ran an interview yesterday with EIR’s Lawrence Freeman on the developments in France, under the headline “Russia, Syria, Iran, China needed in global fight against ISIS.” Freeman describes what would be necessary to actually stop ISIS and global terrorism, and prominently discusses last week’s Capitol Hill press conference, the British-Saudi role, and the fight to declassify the 28 pages.

• In the U.S., there are hundreds of articles and repostings on the 28 pages and the Jan. 7 press conference. Notable are the well-known websites Crooks & Liars, ZeroHedge.com, Daily Beast, the DemocraticUnderground, and the hard-core neo-con site PJMedia.com (run by notorious Michael Ledeen and David Horowitz). PJ’s “Tatler” blog has a posting: “Why Is Saudia Arabia’s Complicity in 9/11 Still Being Redacted?”

• ZeroHedge.com’s posting is “How to beat terrorism: Stop making the seven same mistakes”—its recommendations include:

I. Stop Overthrowing the Moderates and Arming the Crazies…. we’re arming the most violent radicals in the Middle East, as part of a really stupid geopolitical strategy to overthrow leaders we don’t like…

“II. Stop Supporting the Dictators Who Fund Terrorists. Saudi Arabia is the world’s largest sponsor of radical Islamic terrorists. The Saudis have backed ISIS and many other brutal terrorist groups.  According to sworn declarations from a 9/11 Commissioner and the Co-Chair of the Congressional Inquiry Into 9/11, the Saudi government backed the 9/11 hijackers.”

They conclude with: VII. Stop Covering Up 9/11, which includes a video link to the January 7th Press conference, on the call to release the 28 pages.

The story of the suppressed 28 pages and the Saudi role in terrorism, has broken in both the Chinese and Russian press in the past 36 hours, and it is also breaking out in some new locations inside the U.S.

• The English-language edition of the Chinese semi-official paper, Global Times, ran an article yesterday, “Saudi ties to September 11 attacks still suppressed by official mandate,” by Cliff Kiracofe. It reports on last week’s press conference and Kiracofe’s discussions with the principals at the press conference. Kiracofe says of the 28 pages:

“The report shows that factions within Saudi Arabia financed and organized the 9/11 attacks. This point was made clear at the press conference.”
He notes the spreading press coverage of the 28 pages, and concludes: “The Paris events make it ever more urgent that the White House make public the suppressed pages on the sources of Islamic terrorism.”

• RT ran an interview yesterday with EIR’s Lawrence Freeman on the developments in France, under the headline “Russia, Syria, Iran, China needed in global fight against ISIS.” Freeman describes what would be necessary to actually stop ISIS and global terrorism, and prominently discusses last week’s Capitol Hill press conference, the British-Saudi role, and the fight to declassify the 28 pages.

• In the U.S., there are hundreds of articles and repostings on the 28 pages and the Jan. 7 press conference. Notable are the well-known websites Crooks & Liars, ZeroHedge.com, Daily Beast, the DemocraticUnderground, and the hard-core neo-con site PJMedia.com (run by notorious Michael Ledeen and David Horowitz). PJ’s “Tatler” blog has a posting: “Why Is Saudia Arabia’s Complicity in 9/11 Still Being Redacted?”

• ZeroHedge.com’s posting is “How to beat terrorism: Stop making the seven same mistakes”—its recommendations include:

I. Stop Overthrowing the Moderates and Arming the Crazies…. we’re arming the most violent radicals in the Middle East, as part of a really stupid geopolitical strategy to overthrow leaders we don’t like…

“II. Stop Supporting the Dictators Who Fund Terrorists. Saudi Arabia is the world’s largest sponsor of radical Islamic terrorists. The Saudis have backed ISIS and many other brutal terrorist groups.  According to sworn declarations from a 9/11 Commissioner and the Co-Chair of the Congressional Inquiry Into 9/11, the Saudi government backed the 9/11 hijackers.”

They conclude with: VII. Stop Covering Up 9/11, which includes a video link to the January 7th Press conference, on the call to release the 28 pages.

The story of the suppressed 28 pages and the Saudi role in terrorism, has broken in both the Chinese and Russian press in the past 36 hours, and it is also breaking out in some new locations inside the U.S.

• The English-language edition of the Chinese semi-official paper, Global Times, ran an article yesterday, “Saudi ties to September 11 attacks still suppressed by official mandate,” by Cliff Kiracofe. It reports on last week’s press conference and Kiracofe’s discussions with the principals at the press conference. Kiracofe says of the 28 pages:

“The report shows that factions within Saudi Arabia financed and organized the 9/11 attacks. This point was made clear at the press conference.”
He notes the spreading press coverage of the 28 pages, and concludes: “The Paris events make it ever more urgent that the White House make public the suppressed pages on the sources of Islamic terrorism.”

• RT ran an interview yesterday with EIR’s Lawrence Freeman on the developments in France, under the headline “Russia, Syria, Iran, China needed in global fight against ISIS.” Freeman describes what would be necessary to actually stop ISIS and global terrorism, and prominently discusses last week’s Capitol Hill press conference, the British-Saudi role, and the fight to declassify the 28 pages.

• In the U.S., there are hundreds of articles and repostings on the 28 pages and the Jan. 7 press conference. Notable are the well-known websites Crooks & Liars, ZeroHedge.com, Daily Beast, the DemocraticUnderground, and the hard-core neo-con site PJMedia.com (run by notorious Michael Ledeen and David Horowitz). PJ’s “Tatler” blog has a posting: “Why Is Saudia Arabia’s Complicity in 9/11 Still Being Redacted?”

• ZeroHedge.com’s posting is “How to beat terrorism: Stop making the seven same mistakes”—its recommendations include:

I. Stop Overthrowing the Moderates and Arming the Crazies…. we’re arming the most violent radicals in the Middle East, as part of a really stupid geopolitical strategy to overthrow leaders we don’t like…

“II. Stop Supporting the Dictators Who Fund Terrorists. Saudi Arabia is the world’s largest sponsor of radical Islamic terrorists. The Saudis have backed ISIS and many other brutal terrorist groups.  According to sworn declarations from a 9/11 Commissioner and the Co-Chair of the Congressional Inquiry Into 9/11, the Saudi government backed the 9/11 hijackers.”

They conclude with: VII. Stop Covering Up 9/11, which includes a video link to the January 7th Press conference, on the call to release the 28 pages.

Wall Street bribery and U.S. House leadership stupidity combined to give another big “victory” to the big banks over the regulations of the Dodd-Frank bill on Jan. 14. The House voted 271-154 for yet another bill, HR 37, containing sticks of dynamite for bankrupt Wall Street banks to use to blow up the approaching financial crash.

The anti-Wall Street backlash group of leading Democrats which has formed in both Houses against these bills, is demanding that Obama veto this one. But he’s signed two bills in the past month with the same kind of Wall Street regulation-killers and bailout provisions in them, including repeals of derivatives regulations which Obama opposed back when Dodd-Frank was passed in 2010.

The Wall Street strategy, as described in repulsive detail in a front-page New York Times story yesterday morning, is: Pay for massive lobbying ($110 million estimated in 2014); and corrupt Congress with wall-to-wall campaign and PAC contributions, with special largesse to the financial committees of both Houses. All other economic sectors cut back their lobbying expenditures in 2014, the Times reported; Wall Street juiced theirs up.

The Glass-Steagall Act — a simple structural reform which breaks up megabanks on “bankruptcy reorganization” principles — worked for 60 years and will work again. But Dodd-Frank — a thousand little regulations supposed to take effect at various times within 5-7 years (when it was passed in 2010) — doesn’t work. What Wall Street is doing now, with Rep. John Boehner’s GOP leadership, is simply postponing those Dodd-Frank resolutions which cramp their wilder speculations, off into 2019 or later.

Their latest triumph, HR 37, lets them speculate with “CLOs” — collateralized loan obligations — until 2019 at least. One has to read Michael Lewis’s The Big Short to appreciate how destructive CLOs and their evil cousins “CDOs” — collateralized debt obligations — were to the economy in the 2007-08 financial crash. Secondly, HR 37 lets Wall Street banks that own, say, oil or gas operations trade derivatives over the counter (i.e., out of sight and regulation) rather than in central clearinghouses.

These victories by a bankrupt Wall Street, over a sticks-and-straws Dodd-Frank Act which was passed to block Glass-Steagall, brings restoring Glass-Steagall back front-and-center.

This was reported most bluntly in a USA Today column Jan. 13, “Clip Dodd-Frank at Your Own Risk.” It notes,

“The hodgepodge of measures and regulations adopted in Dodd-Frank were a convoluted way to avoid the simple and obvious solutions to the problem — forcing the banks to reduce their size and reinstating Glass-Steagall separation between investment and commercial banks. To the extent that the bank lobby and their advocates in Congress are successful in chipping away at Dodd-Frank, they will only make it clearer that a more radical solution is needed.”

If the Wall Street-hating general public gets involved, the bipartisan bills in both Houses to restore Glass-Steagall, could prevail, the column concludes.

Wall Street bribery and U.S. House leadership stupidity combined to give another big “victory” to the big banks over the regulations of the Dodd-Frank bill on Jan. 14. The House voted 271-154 for yet another bill, HR 37, containing sticks of dynamite for bankrupt Wall Street banks to use to blow up the approaching financial crash.

The anti-Wall Street backlash group of leading Democrats which has formed in both Houses against these bills, is demanding that Obama veto this one. But he’s signed two bills in the past month with the same kind of Wall Street regulation-killers and bailout provisions in them, including repeals of derivatives regulations which Obama opposed back when Dodd-Frank was passed in 2010.

The Wall Street strategy, as described in repulsive detail in a front-page New York Times story yesterday morning, is: Pay for massive lobbying ($110 million estimated in 2014); and corrupt Congress with wall-to-wall campaign and PAC contributions, with special largesse to the financial committees of both Houses. All other economic sectors cut back their lobbying expenditures in 2014, the Times reported; Wall Street juiced theirs up.

The Glass-Steagall Act — a simple structural reform which breaks up megabanks on “bankruptcy reorganization” principles — worked for 60 years and will work again. But Dodd-Frank — a thousand little regulations supposed to take effect at various times within 5-7 years (when it was passed in 2010) — doesn’t work. What Wall Street is doing now, with Rep. John Boehner’s GOP leadership, is simply postponing those Dodd-Frank resolutions which cramp their wilder speculations, off into 2019 or later.

Their latest triumph, HR 37, lets them speculate with “CLOs” — collateralized loan obligations — until 2019 at least. One has to read Michael Lewis’s The Big Short to appreciate how destructive CLOs and their evil cousins “CDOs” — collateralized debt obligations — were to the economy in the 2007-08 financial crash. Secondly, HR 37 lets Wall Street banks that own, say, oil or gas operations trade derivatives over the counter (i.e., out of sight and regulation) rather than in central clearinghouses.

These victories by a bankrupt Wall Street, over a sticks-and-straws Dodd-Frank Act which was passed to block Glass-Steagall, brings restoring Glass-Steagall back front-and-center.

This was reported most bluntly in a USA Today column Jan. 13, “Clip Dodd-Frank at Your Own Risk.” It notes,

“The hodgepodge of measures and regulations adopted in Dodd-Frank were a convoluted way to avoid the simple and obvious solutions to the problem — forcing the banks to reduce their size and reinstating Glass-Steagall separation between investment and commercial banks. To the extent that the bank lobby and their advocates in Congress are successful in chipping away at Dodd-Frank, they will only make it clearer that a more radical solution is needed.”

If the Wall Street-hating general public gets involved, the bipartisan bills in both Houses to restore Glass-Steagall, could prevail, the column concludes.

Wall Street bribery and U.S. House leadership stupidity combined to give another big “victory” to the big banks over the regulations of the Dodd-Frank bill on Jan. 14. The House voted 271-154 for yet another bill, HR 37, containing sticks of dynamite for bankrupt Wall Street banks to use to blow up the approaching financial crash.

The anti-Wall Street backlash group of leading Democrats which has formed in both Houses against these bills, is demanding that Obama veto this one. But he’s signed two bills in the past month with the same kind of Wall Street regulation-killers and bailout provisions in them, including repeals of derivatives regulations which Obama opposed back when Dodd-Frank was passed in 2010.

The Wall Street strategy, as described in repulsive detail in a front-page New York Times story yesterday morning, is: Pay for massive lobbying ($110 million estimated in 2014); and corrupt Congress with wall-to-wall campaign and PAC contributions, with special largesse to the financial committees of both Houses. All other economic sectors cut back their lobbying expenditures in 2014, the Times reported; Wall Street juiced theirs up.

The Glass-Steagall Act — a simple structural reform which breaks up megabanks on “bankruptcy reorganization” principles — worked for 60 years and will work again. But Dodd-Frank — a thousand little regulations supposed to take effect at various times within 5-7 years (when it was passed in 2010) — doesn’t work. What Wall Street is doing now, with Rep. John Boehner’s GOP leadership, is simply postponing those Dodd-Frank resolutions which cramp their wilder speculations, off into 2019 or later.

Their latest triumph, HR 37, lets them speculate with “CLOs” — collateralized loan obligations — until 2019 at least. One has to read Michael Lewis’s The Big Short to appreciate how destructive CLOs and their evil cousins “CDOs” — collateralized debt obligations — were to the economy in the 2007-08 financial crash. Secondly, HR 37 lets Wall Street banks that own, say, oil or gas operations trade derivatives over the counter (i.e., out of sight and regulation) rather than in central clearinghouses.

These victories by a bankrupt Wall Street, over a sticks-and-straws Dodd-Frank Act which was passed to block Glass-Steagall, brings restoring Glass-Steagall back front-and-center.

This was reported most bluntly in a USA Today column Jan. 13, “Clip Dodd-Frank at Your Own Risk.” It notes,

“The hodgepodge of measures and regulations adopted in Dodd-Frank were a convoluted way to avoid the simple and obvious solutions to the problem — forcing the banks to reduce their size and reinstating Glass-Steagall separation between investment and commercial banks. To the extent that the bank lobby and their advocates in Congress are successful in chipping away at Dodd-Frank, they will only make it clearer that a more radical solution is needed.”

If the Wall Street-hating general public gets involved, the bipartisan bills in both Houses to restore Glass-Steagall, could prevail, the column concludes.

An important article in the Daily Beast by senior correspondent Eleanor Clift, her second since the press conference Jan. 7, goes after Obama for covering up the Saudi connection to global terrorism. The piece is titled, “White House: Don’t Call It Terrorism,” with the subhead: “Having flubbed Paris, the administration is convening a summit on countering violent extremism, carefully avoiding any reference to Islamic terrorism, never mind the facts.”

The thrust of Clift’s article is to go after the Obama Administration for refusing to talk about Islamic terrorism, strongly suggesting that this is because it would call the question on the Saudis.

She first quotes Farah Pandith, who was Secretary of State Hillary Clinton’s representative to Muslim communities, who says that we actually know a lot about Islamic extremism, and who funds it — which is the Gulf states, including Saudi Arabia. “It’s mind-blowing, the money to build shiny new mosques with a particular viewpoint,” Pandith says.

Clift then quotes Bill Galston of Brookings, who was a domestic policy advisor to Bill Clinton, arguing that it’s not just about nomenclature; the failure to identify the problem

“exposes a lack of strategic focus, and potentially weakens the government’s hand in the fight….the Saudis have spent upwards of $100 billion to disseminate [wahhabism], building mosques, supplying teachers and training imams. They’ve done a very good job of channeling internal dissent outward. Are we prepared as part of this united front against violent extremism inspired by a misguided interpretation of Islam, are we prepared to confront the Saudis who have played a central role in spreading these tenets?”

Clift writes:

Galston is saying out loud what many in Washington have been aware of in the aftermath of 9/11, when it was revealed that the 19 hijackers were of Saudi origin. Former Florida senator Bob Graham, who was chair of the Senate Select Committee that investigated the attacks, is pressing the Obama administration to make public 28 pages of the Senate report that document the Saudi role in funding and supporting the hijackers. He argues that the continued cover-up encourages the Saudis to continue spreading Wahhabism, and if Obama wants to seize the moment that Paris presents, he should declassify the 28 pages. “If Paris isn’t a turning point in our passivity toward the role the Saudis have played, what will it take?” he told The Daily Beast.

Lyndon LaRouche warned on Wednesday that the escalating war crisis around Ukraine, which targets Russia, is being driven by the London and Wall Street desperation over their looming total bankruptcy.  The desperation was expressed yet again that same day, when Wall Street rammed through HR 37, another deregulation of the derivatives bubble. The bill had been defeated just last week, and Wall Street’s Republican leadership in Congress immediately brought the bill back up for a new vote, this one requiring only a simple majority.

They are clearly aware that the entire trans-Atlantic financial bubble is on the edge, and they cannot wait even a decent interval before pushing through new bailout guarantees. This is criminally unconstitutional.

The same factors are at work in the continuing sabotage of any solution to the Ukraine conflict that would de-escalate the continuing provocations for general war against Russia.  LaRouche warned that the neo-Nazi forces in Ukraine are being promoted and backed by like-minded circles in parts of Western Europe, including in Germany.  The propaganda spewing out of the German media is touting the same neo-Nazi line that Ukrainian Prime Minister Yatsenyuk spread during his visit to Berlin last week.

LaRouche warned:

“Make no mistake, the world is being driven towards World War III and possible thermonuclear extinction by the puppet voices of London and Wall Street.  They are using the anti-Russia provocations and the drive for war to divert attention and hide the truth about their total bankruptcy. Millions of innocent citizens are being devastated on behalf of this Wall Street/London oligarchy, that should be put out of its misery through orderly bankruptcy reorganization, starting with Glass-Steagall,”

LaRouche added that there must be recourse against these London and Wall Street criminals, and he promised that the upcoming Jan. 17 New York City Schiller Institute event would be an important unleashing of just such a recourse.

There are clearly other forces aligning against the London/Wall Street war drive, as reflected in the four-million-person march in France following the two jihadist attacks in Paris last week.  France has refused to fall into the London trap—as Merkel’s Germany has—and respond to the asymmetric warfare with a further assault against its own population.

“If Paris isn’t a turning point in our passivity toward the role the Saudis have played, what will it take?”
— Bob Graham • Jan. 14, 2015Daily Beast

And there is continuing serious coverage of the Saudi hand behind the global terror, following last week’s Capitol Hill press conference by Sen. Bob Graham, Rep. Walter Jones, Rep. Stephen Lynch and representatives of the 9/11 families led by Terry Strada, as well as the Jan. 9 LaRouche PAC webcast, which fully exposed the Anglo-Saudi factor. Just in the last 24 hours, excellent coverage of the press conference and the Saudi role appeared in the Daily Beast, Zerohedge, Russia Today, and China’s Global Times.

The Anglo-Saudi apparatus is at the very center of the war drive against Russia.  The willful driving down of world oil prices to way below break-even costs is aimed at Russia directly, and the Putin leadership in Moscow are fully aware of that they are targeted from London, Riyadh, and from the Obama White House.

The big nightmare overshadowing the international Interior Ministers summit last Sunday, Jan. 11, in Paris, and the follow-up meeting Feb. 18 in Washington (will the BRICS be invited to this?), is the increasing numbers of Americans, and even more so of Europeans, going abroad to join terrorists in Syria and Iraq, and then heading back home again for more terrorism.

“Until this process begins, the ‘party of war’ will continue to be tempted to resolve the matter…by force of arms.
— Sergei Lavrov • Jan. 12, 2015— Speech to EU Ambassadors

At a tribute today to the three police officers killed in last week’s attacks, French President Hollande said that France will be “merciless in the face of anti-Semitic, anti-Muslim acts, and unrelenting against those who defend and carry out terrorism, notably the jihadists who go to Iraq and Syria.”  French Prime Minister Valls said yesterday that “there are 1,400 [french] individuals who are involved in the departures for jihad, for terrorism, in Syria and in Iraq.  It is a massive jump in very little time; there were just about 30 cases when I became interior minister [in mid-2012], and 1,400 today.”

And the German cabinet is expected to approve a law Today, to seize personal ID cards of would-be jihadis for up to three years, to prevent their joining up with terrorists in the Middle East.

This won’t work, Lyndon LaRouche said today.  Instead, we have to get clarity about which side we’re on, and who it is we’re fighting, namely the Saudi-British empire.  We have to start with releasing the classified 28 pages of the report of the Joint Congressional Commission on 9-11, exposing the Saudi, and by implication the British hand behind 9-11.  From there, reverse Obama’s 2011 blunder of calling for Bashar Assad’s overthrow, and join with Syria, Russia, China and others to root out terrorism, while strictly preserving and protecting Syrian sovereignty.

LaRouche said: “You have to go in and get it under control directly…Not this indirect approach; you’ve got to go at it directly.  Don’t try to negotiate this; that doesn’t work.”

SEE “Declassify the 28 Pages”

At the same time, U.S. oil (WTI) fell below $45 for the first time in six years, and Britain’s Standard and Chartered became the first bank to acknowledge facing large losses from the commodity price collapse; bank analysts predicted StanChart will have to raise billions in additional capital. 

LaRouche said:

“They may as well give up right now… raise Hell, not money. Wall Street is absolutely bankrupt and cannot restrain that process. So therefore, the problem is that this is a disease that threatens the entire U.S. economy; that disease must be put under control.  That means shutting down the system.”

That means Glass-Steagall and the rest of LaRouche’s Four Cardinal Laws.

Meanwhile, it has been confirmed that Argentine President Cristina Fernandez de Kirchner will travel to China for a state visit Feb. 3-5, with a large multi-sectoral delegation.  The Argentine Foreign Ministry said the purpose of the trip is to “consolidate and diversify our country’s export offers to one of the most dynamic economies on the world scene.”

Last week in Beijing, Argentine Foreign Minister Timerman met with his Chinese counterpart, Wang Yi, to discuss the state of the bilateral relationship and assess implementation of existing accords, signed during Xi Jinping’s visit last July. Wang Yi also stated his country’s support for Argentina’s efforts to establish an anti-vulture-fund international framework agreement on sovereign debt restructuring, which will be discussed at the UNGA beginning in February.

Argentina’s Central Bank will activate the next tranche of the $11 billion China currency swap agreement, for $400 million, to continue bolstering foreign reserves, and ramp down any expectation of a devaluation.

SEE “LaRouche’s Four Laws”

But yet, at the same time, all this could end in a few moments if the slide towards world war continues around the Ukraine pretext.  Foreign Ministers of Russia, Germany, France and Ukraine met Monday, but made so little progress, according to German Minister Steinmeier, that they cancelled plans for a heads-of-government summit, and instead agreed to meet among themselves again in the near future, without setting a date. Russian Foreign Minister Lavrov told the EU ambassadors to Moscow two days ago that peace would come to Ukraine after the Kiev government fulfilled its promises of last April.  He said the most serious problem was

“the absence of any progress whatsoever, or even the beginning of motion toward carrying out constitutional reform with the participation of all regions and political forces of Ukraine — what was agreed upon back in April 2014.

“Until this process begins, the ‘party of war’ will continue to be tempted to resolve the matter of restoring and ensuring Ukraine’s territorial integrity, not on the basis for nationwide accord and consensus in society, but by force of arms.  This is unacceptable and will be destructive for our Ukrainian neighbors.”

In the midst of this dangerous deterioration, a civilian inter-city bus was hit by military fire near a Kiev checkpoint in the Donetsk area yeseterday, killing a dozen passengers and wounding an equal number.  The fascist Kiev regime immediately blamed the self-defense militias of Donetsk, but they said the bus was deep into Kiev-held territory, far from their front-lines and out of range of their weapons.

LaRouche concluded:

“There are interesting options offered from the BRICS and Europe. The French government will tend to be against war, but some other parts of the world, for example Germany, are in a very touchy situation.  The development in France as such is probably useful in tempering the situation, but I don’t think Germany has shown any sign of that as yet.”

With all grades of oil now down into the $45 range and credit disappearing in the energy sector of the U.S. economy, the New York Times led its business section yesterday with “As Oil Prices Fall, Banks Serving the Energy Industry in for a Jolt.”  The Times reported that the big Wall Street banks have lost their revenue from oil/gas debt, and that the banks with the biggest exposure to this debt are Wells Fargo (15% of all its investment banking revenue last year), with Citigroup at 12%, and the much-more-exposed big Canadian banks, led by Scotiabank at 35%.

The paper further pointed out that Wall Street firms that financed energy deals now have trouble offloading the debts. 2014 was a frothy return to record levels of mergers and acquisitions — $3.4 trillion “worth,” more than in 2007 — and energy mergers were the biggest chunk of that at $409 billion. But merger waves need following price increases (plus austerity) to handle the huge resulting debt; this wave is getting the opposite.

“Morgan Stanley, for instance, led a group of banks that made $850 million of loans to Vine Oil and Gas, an affiliate of Blackstone, a private equity firm. Morgan Stanley is still trying to sell the debt…. Goldman Sachs and UBS led a $220 million loan last year to the private equity firm Apollo Global Management to buy Express Energy Services. That debt has not been sold. A precipitous drop in oil prices can quickly turn loans that once seemed safe and conservatively underwritten, into risky assets.”

• OilPrice.com reported Jan. 7 that there will be a $1.6 trillion loss of earnings of oil companies in 2015 if the price stays around $50, and “without a swift rise in oil prices, a wave of write-downs and impairment charges is about to wash over the industry.”

• Moody’s announced Jan. 7 it is preparing to downgrade debt of TransOcean to junk. This is the largest builder/operator of offshore oil rigs in the world, with debt of $9.1 billion.

• Canadian oil sands producer Laracina Ltd. defaulted on $127 million in debt. Texas oil driller WBH Energy LP declared bankruptcy, its lender had cut off credit, debts about $50 million. Three other publicly traded oil firms went bankrupt in October-November.

• CreditSights Inc. said Jan. 7 that 25 U.S. shale firms are in near-term danger of defaulting on leveraged debt. This is the $200 billion loans part of the $500 billion shale debt bubble, to which rollover credit has essentially disappeared.

• Junk bond interest rates in the energy sector, 4% about investment-grade last July, are now 11% above — there is no credit. For the overall “high-yield,” $2.2 trillion bubble, interest rates were 2.5% above investment grade; they are 4.75% above now, so the oil/gas “contagion” is spreading.

• Capital expenditure is falling fast. Among 40 publicly traded U.S. exploration and production (E&P) companies in oil/gas, the average cut in capital expenditure for 2015 has been 31% from 2014. Overall, energy is one-third of all capital expenditures, so this means a total cut by at least 10% from 2014 to 2015 for the whole economy.

Writing in the Daily Telegraph, Liam Halligan, a strong supporter of Glass- Steagall banking reform, calls the push for a policy of quantitative easing (QE) “madness.” While discussing the fact that there is pressure on German Chancellor Angela Merkel to approve massive QE to fight “deflation,” Halligan writes,

“No matter that ‘deflation’ is an almost entirely bogus argument. Strip out an oil-driven 6.3% drop in energy prices, and inflation was positive in December. Yes, we’re below the ECB’s 2% target, but that’s because the economy has stalled, with survey data pointing to fourth quarter growth of barely 0.1%. But that’s not down to a lack of printed money. Firing up the ECB’s virtual presses will do nothing to address the genuine obstacles to Eurozone growth—the silted-up labor markets, the ghastly demography, the still massively debt-soaked banking sector that is too fragile to lend, so starving creditworthy firms and households of finance, in turn strangling aspiration and commerce…But to think that QE will fix the Eurozone, and solve ‘deflation’ is just nonsense. Once begun, fully-blown Eurozone QE will go on for years. By cossetting busted banks and draining resources, a euro-QE drip-feed will send Europe into a decade or more of near-zero growth.”

He then writes that even QE will not solve the political reality if anti-bailout Syriza wins the Greek elections on Jan. 25.

“If Germany then punishes Athens, the Greeks could walk, putting us in extremely dangerous Eurozone break-up territory. Even if Syriza agrees to negotiate, other bailed-out countries will then demand less onerous terms, which could send bond markets hay-wire…History shows, time and again, that this policy is madness and, ultimately, deeply counter-productive. But since when did we learn from history?”

[Excerpted with permission from the January 12th, 2015 European Strategic Alert]

Both the Greek Syriza party and the Independent Greeks have been making headlines in the European media calling for a European-wide debt conference similar to the conference that led to the London Debt Agreement of 1953 that settled the foreign debts of Germany.

In an interview with BBC4 recently, the leader of Syriza, Alexis Tsipras, said,

“What we are asking for is a European conference in order for all of us united to address this European problem. There is no other solution to the problem but to delete a big part of the debt, [to issue] a new memorandum on the repayment and a new development clause….Obviously we will negotiate with our partners in order for all of us united to address the Greek debt issue. Such a conference would not only deal with the Greek debt but that of other bailout countries including Ireland, Portugal, Cyprus, etc., and Europe as a whole.”

Convening such a conference is an excellent opportunity not only to settle the Greek debt crisis but to reorganize and reform the entire European financial system. The real issue is not the Greek debt but the bankruptcy reorganization of the entire Eurozone, and more broadly, the trans-Atlantic financial system.

The London Debt Conference … settled the German inter-war public and private foreign debt, as well as the post-war Marshall Plan concessionary loans debt, on the following principles:

• The purpose of the negotiation was to … facilitate the most rapid recovery and expansion of the German economy, which was seen as crucial for the recovery of Western Europe as a whole.

• All the foreign debt, public and private debt was to be settled by treaty…. There were no exceptions, such as hedge funds or vulture funds receiving any special treatment. The agreement was in the form of a treaty between the respective states and therefore final, and not subject to foreign court actions such as in the Argentine case.

• An average 50% cut in the principal of the debt, with low interest rate. Payments were made through [Germany’s] surplus export earnings. That is to say, if Germany enjoyed a surplus of trade, and hence foreign exchange, payments would be made based on that surplus. If there was a deficit, no payments would be made. Part of this formula [stipulated that] Germany was encouraged to implement a policy of import substitution.

• Absolutely no conditionalities were attached….

Most importantly, this occurred under a financial system that was on a Glass-Steagall standard of full separation between commercial and investment banking, where the former was forbidden by law to engage in the trading of derivatives and other forms of exotic financial instruments. At the same time, powerful credit institutions existed, most notably the Kreditanstalt fur Wiederaufbau, which served as Hamiltonian credit institutions to finance industry and infrastructure which rapidly led full employment….

There has never been such a debt restructuring since, and none that has been as successful as the so-called German economic miracle made so manifest.

Such a restructuring could never be done under the current system, primarily because the debt is part of a system of casino banking where these so-called sovereign bonds are linked to a labyrinth of derivatives and speculative securities. Therefore, the entire system of European banking and credit has to be reorganized in an orderly manner as was done under Franklin Roosevelt when the Glass-Steagall Act was passed, beginning with the separation of banks, and the creation of a national credit institutions in the form of the Reconstruction Finance Corporations. This kind of action, with all EU nations at a conference table, makes it possible for Europe as a whole to craft a productive solution for the debt crises of Greece, Ireland, Portugal, Cyprus etc….

The most efficient way to carry out this task would be through returning powers to the sovereign states. With a return to national banking, the European Central Bank could be replaced by a European Development Bank to extend credits to the necessary infrastructure and industrial projects that would integrate Europe into the world land-bridge perspective of the BRICS.

Media coverage continues, on the drive to get the missing “28 pages” of the 9/11 Joint Congressional Inquiry report released, specifically to expose the Saudi Arabia/London role in terrorism. A posting on yesterday’s Daily Beast stresses the essential point repeated by former Sen. Bob Graham, co-author of the report: The real “threat to national security is non-disclosure.”

Writer Eleanor Clift, in the Daily Beast article, “The Missing Pages of the 9/11 Report” (Jan. 12) opens,

“The lead author of the Senate’s report on 9/11 says its time to reveal what’s in the 28 pages that were redacted from it, which he says will embarrass the Saudis….”

She covers the Jan. 7 press conference by Graham and Congressmen Jones and Lynch, writing,

“And according to Graham … the pages point a very strong finger at Saudi Arabia as the principal financier of the 9/11 hijackers…The pages are being kept under wraps out of concern their disclosure would hurt U.S. national security. But as chairman of the Senate Select Committee that issued the report in 2002, Graham argues the opposite is true, and that the real ‘threat to national security is non-disclosure.'”

This Clift piece, in turn, is covered in an article on newsmax.com today, titled, “Bob Graham: Redacted Pages in 9/11 Report ‘Point’ to Saudis,” by writer Drew MacKenzie.

RT in Spanish published a story mid-afternoon on Jan. 12, called “The 28 Pages Which Could Change the View of 911,” which succinctly reports that

“a bipartisan group of U.S. congressmen have joined the families of 9/11 victims to redouble their efforts and declassify the 28 pages.”

The article then proceeds to quote Senator Graham:

“It is no longer a secret that the 28 pages of the report point the accusing finger at the government of Saudi Arabia as the principal actor in the terrorist attacks…. The position of the United States government has been to protect Saudi Arabia…. In practically all steps of the judicial process, when the United States government was called only to take a position, this was a position against the interests of citizens of the United States….” [Emphasis RT’s]

HispanTV (Iran’s Spanish-language TV network) filed a sharp, 2-1/2 minute story on Jan. 8 on the 28 pages press conference, featuring interviews that HispanTV’s reporter, Mendoza, did with Jones, Graham, Strada, and Steinberg, after the press conference.

DiarioDigitalRD, of the Dominican Republic, and a news site servicing the (large) Dominican community in New York City, have published LPAC’s press release on the press conference.

       

‘Links to U.K.’—Finsbury Mosque

Coverage is continuing, on the British terrorism connections. An article posted today in RT UK, is titled, “Charlie Hebdo Gunman’s Mentor Had Links to U.K. and Abu Hamza.” The lengthy report begins,
“One of the two Charlie Hebdo suspects, Cherif Kouachi, was reportedly mentored by al-Qaeda lynchpin Djamel Beghal, who has lived in the U.K. and had close ties to Finsbury Park Mosque. He has spun his web of terror cells since 9/11….”

This is the statement of Jacques Cheminade, president of Solidarité & Progrès, after having marched in the Sunday 11th rallies in Paris. The original statement is available in French on Jacques Cheminade’s website, English translation reprinted here with permission.

In Paris this Sunday January 11th, I marched with the people of my country. I could not but admire the reverence, the dignity and the determination of this immense crowd, transcending party politics. “I am Charlie, I am a Jew, I am a policeman, I’m a Muslim, I am a Christian, I’m a Frenchman, I’m a citizen of the world,” tells you what we all felt.

Our place was there.  And the feeling nothing would be as it been before was there too.

Today, political life resumes, that is, reason committed to action, without hypocrisy.  It is immediately necessary to identify those responsible:  We must demand accounts, of Saudi Arabia, of Qatar, and all those agencies that engendered these Frankenstein monsters.  We must place blame on those who, whether in London or Washington, in Wall Street or the City of London, whether in Riyadh or Doha, promote terrorism or launder its funding, violating the principles of our Republics.

On an emergency basis we must set up a Parliamentary Commission of Inquiry on the sources of terrorism, with the commitment not to stop investigating into areas no matter how embarrassing.

It is time, well past time. Without such action, we will descend into the aggressive policy of NATO and into a regime of lawless law, which, as it was noted by Mikhail Gorbachov, may lead to nuclear war and in which terrorism is the asymmetrical excrescence.

It is time, well past time, to return to a global policy that serves the cause of humanity, a policy of peace, understanding, and cooperation with all those who are willing to put an end to the destructive austerity policies that create the breeding ground of false prophets and imbecile barbarians.

Let’s do what it takes to ensure that lovely day of yesterday brings us there, and that national unity not be a so-called sacred union, suffocating us in submission to those who sow the wind to reap whirlwind.

With a thought in each of our deeds for the two youths at Vincennes this past Friday, who died a hero’s death as they sought to wrench weapons from the killer’s grasp.

Forward!  We are the stuff dreams are made of.