Thanks To QE Bernanke Has Injected Foreign Banks With Over $1 Trillion In Cash For First Time Ever
“Two years ago, Zero Hedge first made the observation that the bulk of Fed reserves (also known simply as “cash created out of thin air” because money is first and foremost fungible no matter what textbook theoreticians may claim, and the only cash allocation preference is the capital allocation IRR analysis) had been parked not with US banks, but with foreign banks with US-based operations. We followed that with more analyses, showing explicitly how the Fed was providing a constant cash injection to foreign banks courtesy of the rate on overnight reserves which is the amount Fed pays to banks that hold reserves with it, as the bulk of reserves continued to end up with foreign banks – a situation set to become a huge political storm some time in 2014-2015 when the IOER has to rise and the Fed is “found” to have injected tens of billions of “interest” not into US banks but in foreign banks operating in the US, and which then can upstream the “profits” to insolvent offshore domiciled holding companies.”
Via Zero Hedge
Supreme Court Colludes with Monsanto
“It’s no surprise. Michael Parenti calls America’s High Court its “autocratic branch.”
It’s notoriously pro-business. It’s longstanding. In Santa Clara County v. Southern Pacific Railway (1886), it granted corporations legal personhood.
More recently, in Wal-Mart Stores, Inc. v. Dukes et al (June 2011), it denied longstanding sexual discrimination class action redress. It overruled a Ninth Circuit Court of Appeals decision doing so.
In AT&T Mobility v. Concepcion (April 2011), it did so two months earlier. It blocked class action redress claiming fraud. The company’s wireless subsidiary charged sales tax on cellphones it advertised as free. Two California courts rules for plaintiffs. The High Court overruled them.”
Via Activist Post
Monsanto Declares a Sneaky Social Media War Against Protesters
“One of the most powerful tools in the arsenal of the grass roots food freedom fight is social media. Google, Facebook, Twitter, Reddit, and many more networks allow people to instantly connect and provide a platform for information to be passed on exponentially. Facebook and Google are the two biggest websites in the entire world, and their reach is nearly unlimited.
Last week, the Monsanto Company made it very clear that they were under the gun via social media, and they went on the defense, weakly claiming that those who object with their toxic seeds and deadly farming methods were “elitist,” thereby attempting to undermine us as snobbish people who don’t see the big picture and who don’t care about world hunger.”
Via Activist Post
The Coming Collapse Of The Petrodollar System
“The theory of Petrodollar Warfare can be attributed to US analyst and author William R Clarke, and his 2005 book of that title which interpreted the US-UK decision to invade Iraq in 2003. He called this an “oil currency war”, but the concept of the petrodollar system and petrodollar recyling dates back to the eve of the first Oil Shock in 1973-1974. The role of the petrodollar system as a driving force of US foreign policy is explained by analysts and historians as basic to maintaining the dollar’s status as the world’s dominant reserve currency – and the currency in which oil is priced.
The term “petrodollar warfare” as used by William R. Clark says that major international war, legal or not, was seen as justified to protect the petrodollar system. Over and above the loss of human life, the combined costs of the Afghan and Iraq wars for the US are controversial like the interpretation of these wars as “oil wars”, but analysts like Joseph Stiglitz and Linda Bilmes put the total combined war cost at above $4 trillion. This can be compared with – and totally dwarfs – the annual cost of US oil imports, which are now sharply declining on a year-in year-out basis as domestic shale oil output ramps up, and US oil demand stagnates.
Clarke’s theory, like the explanation of the role and power of the “petrodollar system” depends on two basic drivers. Most major developed countries rely on oil imports, which are purchased using dollars, so they are forced to hold large stockpiles of dollars in order to continue importing oil. In turn this also creates consistent demand for dollars, and prevents the dollar from losing its relative international monetary value, regardless of what happens to the US economy.”
Via Zero Hedge
IRS’s Lerner Had History of Harassment, Inappropriate Religious Inquiries at FEC
“Perhaps no other IRS official is more intimately associated with the tax agency’s growing scandal than Lois Lerner, director of the IRS’s Exempt Organizations Division. Since admitting the IRS harassed hundreds of conservative and Tea Party groups for over two years, Lerner has been criticized for a number of untruths—including the revelation that she apparently lied about planting a question at an American Bar Association conference where she first publicly acknowledged IRS misconduct.
Still, Lerner has her defenders in the government and the media. Shortly after the scandal broke, The Daily Beast published an article headlined “IRS Scandal’s Central Figure, Lois Lerner, Described as ‘Apolitical.’” Insisting Lerner, and the IRS more broadly, were not not politically motivated has been a central contention of those trying to minimize the impact of the scandal.”
Senate panel OKs tax-welfare benefits for newly legal immigrants
“The SenateJudiciary Committee voted Monday to allow illegal immigrants who get legal status to begin collecting tax-welfare payments, as the panel spent a fourth day working through amendments to the massive immigration bill and party-line splits began to emerge.
In one major change, the committee voted 17-1 to make a third drunken-driving conviction a deportable offense for the newly legalized immigrants if at least one of those offenses occurs after they are approved for legal status.”
Via Washington Times
