TO THE CHURCH AND NATION OF BRITAIN

A few months ago Moriel web posted this prophecy by our friend & brother Stewart Dool from a sister ministry Moriel endorses here in Britain. While some contacted us in objection, I prayerfully considered it right to publish the prophetic prediction for prayerful consideration. I am in retrospect glad in light of recent events that we carried it and promoted it. He has certainly been vindicated; as it says in Romans 12 he "propheseyed according to his faith". Jacob Prasch The following is a prophetic word received by Stewart Dool (who heads up Intercessors for Britain) in the week 23-27 July 2007. It has been weighed and tested by others in senior positions of ministry. TO THE CHURCH AND NATION OF BRITAIN I am about to send fire upon you, the fire of My judgment, and it will consume on the right and on the left. All who have spurned My ways and My words will reap what they have sown, for in My burning anger I will judge the gods in whom you have put your trust, the gods of materialism and covetousness. The gold and the silver will be taken from you, and your portion will be emptiness, desolation and vanity. I will bring the stability of your currency into doubt, to show you that it is I alone who caused you to prosper in the past. I raised you to prominence among the nations and gave you authority over many peoples: so you became rich, and boasted in your wealth, but I will bring you low, and the nations over whom you once ruled will say "What has happened to this great nation?" As you have feared other gods, and not feared Me, so I will visit your deeds upon you. Your idolatries have led you astray, and you have become like those before whom you bow down. I commanded your fathers that they should not fear the gods of the nations, but you have not obeyed Me. Therefore I have given you into the hands of abominations and all manner of uncleanness. Darkness will envelope those who have led my people into false light, for I will no longer forbear in my wrath. I will blind them, and they shall stumble in the perversity of their ways. Many shall follow them into darkness and be taken in the snare of the wicked, for they have loved to wander, and they have not watched the path of their feet. My people give heed to those who prophesy a lie, and they delight in the teachers of falsehood. They run to those who steal from them by their destructive heresies, for they cannot discern the paths of righteousness. A wave of deception is about to break forth that will sweep many away, therefore take heed to yourselves, and cling to the word of My truth. I am bringing My Church to a time of testing, and I will search the hearts of all who call upon My name, and I will know those who are mine, and they shall know their God. My displeasure will be visited upon your Government, for those who rule over you have become offensive to Me, as they have set aside My laws and My statutes, exalting the wicked and despising My holy name. You have not abhorred bloodshed, therefore the blood of your sons and daughters will lie in your streets, until you learn that as the cry of the unborn calls to me for vengeance, so I shall require it of you. All these things I will do, because you have rejected Me, and thought that your own power could save you. Yet even now, if you will cry out to Me, and turn from your wickedness, I will spare. Nevertheless, I will chasten you in measure, and you shall know that I am the Lord. My beloved ones, the hour of My patience will not continue much longer. I call your therefore to seek my face with earnestness and zeal, that I may extend compassion to your land and people.

See it Here: Emergency Economic Stabilization Act of 2008

H.R. 1424: A bill to provide authority for the Federal Government to purchase and insure certain types of troubled assets for the purposes of providing stability to and preventing disruption in the economy and financial system and protecting taxpayers, to amend the Internal Revenue Code of 1986 to provide incentives for energy production and conservation, to extend certain expiring provisions, to provide individual income tax relief, and for other purposes. Overview http://www.govtrack.us/congress/bill.xpd?bill=h110-1424 Summary http://www.govtrack.us/congress/bill.xpd?bill=h110-1424&tab=summary Full Text http://www.govtrack.us/congress/billtext.xpd?bill=h110-1424 FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Treasury Would Emerge With Vast New Power

NEW YORK TIMES [NYTimes Group/Sulzberger] - By Floyd Norris - September 28, 2008 During its weeklong deliberations, Congress made many changes to the Bush administration’s original proposal to bail out the financial industry, but one overarching aspect of the initial plan that remains is the vast discretion it gives to the Treasury secretary. The draft legislation, which will be put to a House vote on Monday, gives Treasury Secretary Henry M. Paulson Jr. and his successor extraordinary power to decide how the $700 billion bailout fund is spent. For example, if he thinks it wise, he may buy not only mortgages and mortgage-backed securities, but any other financial instrument. To be sure, the Treasury secretary’s powers have been tempered since the original Bush administration proposal, which would have given Mr. Paulson nearly unfettered control over the program. There are now two separate oversight panels involved, one composed of legislators and the other including regulatory and administration officials. Still, Mr. Paulson can choose to buy from any financial institution that does business in the United States, or from pension funds, with wide discretion over what he will buy and how much he will pay. Under most circumstances, banks owned by foreign governments are not eligible for the money, but under some conditions, the secretary can choose to bail out foreign central banks. Under the bill, the Treasury is to buy the securities at prices he deems appropriate. Mr. Paulson may set prices through auctions but is not required to do so. Rarely if ever has one man had such broad authority to spend government money as he sees fit, with no rules requiring him to seek out the lowest possible price for assets being purchased. - - - - http://www.nytimes.com/2008/09/29/business/29bill.html?partner=permalink&exprod=permalink FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Big Tax Breaks for Businesses in Housing Bill

NEW YORK TIMES [NYTimes Group/Sulzberger] - By Stephen Labaton and David M. Herszenhorn - April 16, 2008 WASHINGTON - The Senate proclaimed a fierce bipartisan resolve two weeks ago to help American homeowners in danger of foreclosure. But while a bill that senators approved last week would take modest steps toward that goal, it would also provide billions of dollars in tax breaks - for automakers, airlines, alternative energy producers and other struggling industries, as well as home builders. The tax provisions of the Foreclosure Prevention Act, which consumer groups and labor leaders say amount to government handouts to big business, show how the credit crisis, while rattling the housing and financial markets, has created beneficiaries in the power corridors of Washington. It also shows how legislation with a populist imperative offers a chance for lobbyists to press their clients’ interests. - - - - http://www.nytimes.com/2008/04/16/business/16bailout.html?ex=1366084800&en=30abe1fe0651f26b&ei=5124&partner=permalink&exprod=permalink FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Agency’s ’04 Rule Let Banks Pile Up New Debt

NEW YORK TIMES [NYTimes Group/Sulzberger] - By Stephen Labaton - October 2, 2008 “We have a good deal of comfort about the capital cushions at these firms at the moment.” — Christopher Cox, chairman of the Securities and Exchange Commission, March 11, 2008. As rumors swirled that Bear Stearns faced imminent collapse in early March, Christopher Cox was told by his staff that Bear Stearns had $17 billion in cash and other assets — more than enough to weather the storm. Drained of most of its cash three days later, Bear Stearns was forced into a hastily arranged marriage with JPMorgan Chase — backed by a $29 billion taxpayer dowry. Within six months, other lions of Wall Street would also either disappear or transform themselves to survive the financial maelstrom — Merrill Lynch sold itself to Bank of America, Lehman Brothers filed for bankruptcy protection, and Goldman Sachs and Morgan Stanley converted to commercial banks. How could Mr. Cox have been so wrong? Many events in Washington, on Wall Street and elsewhere around the country have led to what has been called the most serious financial crisis since the 1930s. But decisions made at a brief meeting on April 28, 2004, explain why the problems could spin out of control. The agency’s failure to follow through on those decisions also explains why Washington regulators did not see what was coming. On that bright spring afternoon, the five members of the Securities and Exchange Commission met in a basement hearing room to consider an urgent plea by the big investment banks. They wanted an exemption for their brokerage units from an old regulation that limited the amount of debt they could take on. The exemption would unshackle billions of dollars held in reserve as a cushion against losses on their investments. Those funds could then flow up to the parent company, enabling it to invest in the fast-growing but opaque world of mortgage-backed securities; credit derivatives, a form of insurance for bond holders; and other exotic instruments. The five investment banks led the charge, including Goldman Sachs, which was headed by Henry M. Paulson Jr. Two years later, he left to become Treasury secretary. A lone dissenter — a software consultant and expert on risk management — weighed in from Indiana with a two-page letter to warn the commission that the move was a grave mistake. He never heard back from Washington. One commissioner, Harvey J. Goldschmid, questioned the staff about the consequences of the proposed exemption. It would only be available for the largest firms, he was reassuringly told — those with assets greater than $5 billion. “We’ve said these are the big guys,” Mr. Goldschmid said, provoking nervous laughter, “but that means if anything goes wrong, it’s going to be an awfully big mess.” Mr. Goldschmid, an authority on securities law from Columbia, was a behind-the-scenes adviser in 2002 to Senator Paul S. Sarbanes when he rewrote the nation’s corporate laws after a wave of accounting scandals. “Do we feel secure if there are these drops in capital we really will have investor protection?” Mr. Goldschmid asked. A senior staff member said the commission would hire the best minds, including people with strong quantitative skills to parse the banks’ balance sheets. Annette L. Nazareth, the head of market regulation, reassured the commission that under the new rules, the companies for the first time could be restricted by the commission from excessively risky activity. She was later appointed a commissioner and served until January 2008. “I’m very happy to support it,” said Commissioner Roel C. Campos, a former federal prosecutor and owner of a small radio broadcasting company from Houston, who then deadpanned: “And I keep my fingers crossed for the future.” The proceeding was sparsely attended. None of the major media outlets, including The New York Times, covered it. After 55 minutes of discussion, which can now be heard on the Web sites of the agency and The Times, the chairman, William H. Donaldson, a veteran Wall Street executive, called for a vote. It was unanimous. The decision, changing what was known as the net capital rule, was completed and published in The Federal Register a few months later. With that, the five big independent investment firms were unleashed. In loosening the capital rules, which are supposed to provide a buffer in turbulent times, the agency also decided to rely on the firms’ own computer models for determining the riskiness of investments, essentially outsourcing the job of monitoring risk to the banks themselves. Over the following months and years, each of the firms would take advantage of the looser rules. At Bear Stearns, the leverage ratio — a measurement of how much the firm was borrowing compared to its total assets — rose sharply, to 33 to 1. In other words, for every dollar in equity, it had $33 of debt. The ratios at the other firms also rose significantly. The 2004 decision for the first time gave the S.E.C. a window on the banks’ increasingly risky investments in mortgage-related securities. But the agency never took true advantage of that part of the bargain. The supervisory program under Mr. Cox, who arrived at the agency a year later, was a low priority. The commission assigned seven people to examine the parent companies — which last year controlled financial empires with combined assets of more than $4 trillion. Since March 2007, the office has not had a director. And as of last month, the office had not completed a single inspection since it was reshuffled by Mr. Cox more than a year and a half ago. The few problems the examiners preliminarily uncovered about the riskiness of the firms’ investments and their increased reliance on debt — clear signs of trouble — were all but ignored. The commission’s division of trading and markets “became aware of numerous potential red flags prior to Bear Stearns’s collapse, regarding its concentration of mortgage securities, high leverage, shortcomings of risk management in mortgage-backed securities and lack of compliance with the spirit of certain” capital standards, said an inspector general’s report issued last Friday. But the division “did not take actions to limit these risk factors.” Drive to Deregulate The commission’s decision effectively to outsource its oversight to the firms themselves fit squarely in the broader Washington culture of the last eight years under President Bush. A similar closeness to industry and laissez-faire philosophy has driven a push for deregulation throughout the government, from the Consumer Product Safety Commission and the Environmental Protection Agency to worker safety and transportation agencies. “It’s a fair criticism of the Bush administration that regulators have relied on many voluntary regulatory programs,” said Roderick M. Hills, a Republican who was chairman of the S.E.C. under President Gerald R. Ford. “The problem with such voluntary programs is that, as we’ve seen throughout history, they often don’t work.” As was the case with other agencies, the commission’s decision was motivated by industry complaints of excessive regulation at a time of growing competition from overseas. The 2004 decision was aimed at easing regulatory burdens that the European Union was about to impose on the foreign operations of United States investment banks. The Europeans said they would agree not to regulate the foreign subsidiaries of the investment banks on one condition — that the commission regulate the parent companies, along with the brokerage units that the S.E.C. already oversaw. A 1999 law, however, had left a gap that did not give the commission explicit oversight of the parent companies. To get around that problem, and in exchange for the relaxed capital rules, the banks volunteered to let the commission examine the books of their parent companies and subsidiaries. The 2004 decision also reflected a faith that Wall Street’s financial interests coincided with Washington’s regulatory interests. “We foolishly believed that the firms had a strong culture of self-preservation and responsibility and would have the discipline not to be excessively borrowing,” said Professor James D. Cox, an expert on securities law and accounting at Duke School of Law (and no relationship to Christopher Cox). “Letting the firms police themselves made sense to me because I didn’t think the S.E.C. had the staff and wherewithal to impose its own standards and I foolishly thought the market would impose its own self-discipline. We’ve all learned a terrible lesson,” he added. In letters to the commissioners, senior executives at the five investment banks complained about what they called unnecessary regulation and oversight by both American and European authorities. A lone voice of dissent in the 2004 proceeding came from a software consultant from Valparaiso, Ind., who said the computer models run by the firms — which the regulators would be relying on — could not anticipate moments of severe market turbulence. “With the stroke of a pen, capital requirements are removed!” the consultant, Leonard D. Bole, wrote to the commission on Jan. 22, 2004. “Has the trading environment changed sufficiently since 1997, when the current requirements were enacted, that the commission is confident that current requirements in examples such as these can be disregarded?” He said that similar computer standards had failed to protect Long-Term Capital Management, the hedge fund that collapsed in 1998, and could not protect companies from the market plunge of October 1987. Mr. Bole, who earned a master’s degree in business administration at the University of Chicago, helps write computer programs that financial institutions use to meet capital requirements. He said in a recent interview that he was never called by anyone from the commission. “I’m a little guy in the land of giants,” he said. “I thought that the reduction in capital was rather dramatic.” Policing Wall Street A once-proud agency with a rich history at the intersection of Washington and Wall Street, the Securities and Exchange Commission was created during the Great Depression as part of the broader effort to restore confidence to battered investors. It was led in its formative years by heavyweight New Dealers, including James Landis and William O. Douglas. When President Franklin D. Roosevelt was asked in 1934 why he appointed Joseph P. Kennedy, a spectacularly successful stock speculator, as the agency’s first chairman, Roosevelt replied: “Set a thief to catch a thief.” The commission’s most public role in policing Wall Street is its enforcement efforts. But critics say that in recent years it has failed to deter market problems. “It seems to me the enforcement effort in recent years has fallen short of what one Supreme Court justice once called the fear of the shotgun behind the door,” said Arthur Levitt Jr., who was S.E.C. chairman in the Clinton administration. “With this commission, the shotgun too rarely came out from behind the door.” Christopher Cox had been a close ally of business groups in his 17 years as a House member from one of the most conservative districts in Southern California. Mr. Cox had led the effort to rewrite securities laws to make investor lawsuits harder to file. He also fought against accounting rules that would give less favorable treatment to executive stock options. Under Mr. Cox, the commission responded to complaints by some businesses by making it more difficult for the enforcement staff to investigate and bring cases against companies. The commission has repeatedly reversed or reduced proposed settlements that companies had tentatively agreed upon. While the number of enforcement cases has risen, the number of cases involving significant players or large amounts of money has declined. Mr. Cox dismantled a risk management office created by Mr. Donaldson that was assigned to watch for future problems. While other financial regulatory agencies criticized a blueprint by Mr. Paulson, the Treasury secretary, that proposed to reduce their stature — and that of the S.E.C. — Mr. Cox did not challenge the plan, leaving it to three former Democratic and Republican commission chairmen to complain that the blueprint would neuter the agency. In the process, Mr. Cox has surrounded himself with conservative lawyers, economists and accountants who, before the market turmoil of recent months, had embraced a far more limited vision for the commission than many of his predecessors. ‘Stakes in the Ground’ Last Friday, the commission formally ended the 2004 program, acknowledging that it had failed to anticipate the problems at Bear Stearns and the four other major investment banks. “The last six months have made it abundantly clear that voluntary regulation does not work,” Mr. Cox said. The decision to shutter the program came after Mr. Cox was blamed by Senator John McCain, the Republican presidential candidate, for the crisis. Mr. McCain has demanded Mr. Cox’s resignation. Mr. Cox has said that the 2004 program was flawed from its inception. But former officials as well as the inspector general’s report have suggested that a major reason for its failure was Mr. Cox’s use of it. “In retrospect, the tragedy is that the 2004 rule making gave us the ability to get information that would have been critical to sensible monitoring, and yet the S.E.C. didn’t oversee well enough,” Mr. Goldschmid said in an interview. He and Mr. Donaldson left the commission in 2005. Mr. Cox declined requests for an interview. In response to written questions, including whether he or the commission had made any mistakes over the last three years that contributed to the current crisis, he said, “There will be no shortage of retrospective analyses about what happened and what should have happened.” He said that by last March he had concluded that the monitoring program’s “metrics were inadequate.” He said that because the commission did not have the authority to curtail the heavy borrowing at Bear Stearns and the other firms, he and the commission were powerless to stop it. “Implementing a purely voluntary program was very difficult because the commission’s regulations shouldn’t be suggestions,” he said. “The fact these companies could withdraw from voluntary supervision at their discretion diminished the mandate of the program and weakened its effectiveness. Experience has shown that the S.E.C. could not bootstrap itself into authority it didn’t have.” But critics say that the commission could have done more, and that the agency’s effectiveness comes from the tone set at the top by the chairman, or what Mr. Levitt, the longest-serving S.E.C. chairman in history, calls “stakes in the ground.” “If you go back to the chairmen in recent years, you will see that each spoke about a variety of issues that were important to them,” Mr. Levitt said. “This commission placed very few stakes in the ground.” http://www.nytimes.com/2008/10/03/business/03sec.html?partner=permalink&exprod=permalink FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Cosmetic Surgery Expected to Soar

LIVE SCIENCE.com - By Robert Roy Britt - June 24, 2008 By 2015, 17 percent of the residents of the United States will be getting cosmetic procedures, the body enhancement industry predicts. A new study published by the American Society of Plastic Surgeons (ASPS) predicts there will be more than 55 million cosmetic surgery procedures performed in 2015. That's nearly one procedure for every five Americans, including children, based on U.S. Census Bureau population projections. Of course, the bulk of procedures are done on adults, and some people might get more than one body part fixed in a year. The industry is well aware of what is driving all this: "Pushing this growth is increasing consumer awareness, direct-to-consumer marketing and advertising, as well as technological advances in non-surgical options," the group said in a statement today. In 2007, Americans spent more than $13 billion for nearly 11.7 million cosmetic procedures. That's up from nearly 8.5 million procedures in 2001. Sales sag Thanks to the bad economy, times are tough in human body shops right now, however. "While today's economy reflects a slow-down in plastic surgery procedures, the specialty will weather the current decline in economic growth just as it has previous declines, such as the stock market correction after the 2001 Internet bubble," said ASPS President Richard D'Amico, MD. "This prediction for 2015 is exciting." Some caution might be in order before the nation plunges head-long into fulfilling the industry's expectations. "Our concern is that with predicted growth and interest in the broad spectrum of cosmetic procedures, patients will look to the closest, easiest solution," said D'Amico. "Potential patients, however, need to know that board-certified plastic surgeons are uniquely qualified with an in-depth medical knowledge of the entire human body. They have the training necessary to accurately assess your individual needs and map health and beauty goals for your entire lifetime." The study was based on annual ASPS National Clearinghouse of Plastic Surgery statistics from 1992-2005. The researchers also analyzed the impact of economic and non-economic variables on industry growth. What's hot? Women's top-five cosmetic surgical procedures for 2007: Breast augmentation: 399,440 procedures Liposuction: 398,848 Eyelid surgery: 208,199 Men's top-five cosmetic surgical procedures for 2007: Liposuction: 57,980 procedures Eyelid surgery: 32,564 Nose reshaping: 31,713 In 2005, 34 percent of all procedures performed by ASPS Member Surgeons were surgical and 66 percent were non-surgical, the new study finds. Also in 2005, for non-ASPS members 9.5 percent of their procedures were surgical, while 90.5 percent were non-surgical. But non-surgical procedures grew 27.9 percent between 1992 and 2005, while surgical procedures grew just 7.5 percent. The No. 1 non-surgical cosmetic procedure for U.S. men and women last year was Botox injection. By 2015, the researchers predict that 88 percent of all cosmetic procedures will be non-surgical. http://www.livescience.com/health/080624-plastic-surgery.html FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Short-selling’ church leaders accused of failing to practise what they preach

THE TIMES of LONDON [News Corporation/Murdoch] - By Ruth Gledhill, Religion Correspondent - September 26, 2008 The Church of England was accused last night of having used short-selling to maximise profit on a £5 billion investment hours after its archbishops criticised banking practices. After the call from the archbishops of Canterbury and York for tighter regulation of the markets, the liberal think-tank Ekklesia said that the Church was implicated in stock market speculation. It said that in 2006 the Church Commissioners, which manages the Church of England’s investments, set up a currency hedging programme against a fall in the value of sterling, effectively short-selling the pound to guard against rises in other currencies. It also criticised the Church for its shareholdings in oil and mining companies. On Wednesday the Archbishop of York, Dr John Sentamu, branded the traders who cashed in on falling share prices in the troubled bank HBOS as “bank robbers” and “asset strippers”. In an interview with The Times, he said that people had become enslaved to the god of money, and that leaving the market to regulate itself was like leaving a pack of hyenas in charge of a herd of cattle. He called for a judicial inquiry into the financial services industry. The Archbishop of Canterbury, Dr Rowan Williams, accepted that making a profit was a legitimate goal, “if not a morally supreme” one, but called in an article in The Spectator for more regulation of the financial world. Jonathan Bartley, the co-director of Ekklesia, said: “The archbishops should be extremely careful when attacking City ‘bank robbers’ for short-selling and speculation. Amongst the billions of pounds that the Church currently invests in property and shares are hundreds of millions invested in oil and mining companies. “The Church has benefited significantly from the speculation that has underpinned rising oil and commodity prices such as gold and copper. The Church has substantial shareholdings in banks and a stated aim of making an excess profit of 5 per cent each year, over and above the rate of inflation, on its investments.” The Church Commissioners’ annual report last year revealed that its average return over the past decade was 9.5 per cent per year. Mr Bartley continued: “By its own admission it has also hedged against a fall in the value of sterling, and set up a currency hedging programme in 2006, effectively short-selling sterling in the currency markets.” He suggested that the Church should invest in institutions such as cooperatives, friendly societies and housing associations, and to work for the good of society, accepting a slightly lower profit. “The £5 billion investments that the Church currently holds provide a valuable opportunity for the Church to put its money where its mouth is, and use its wealth for good,” Mr Bartley said. The Church denied last night that it indulged in any dubious practices and said that its investment decisions were informed by its Ethical Investment Advisory Group. A spokesman said: “The commissioners do not short equities, nor have they delegated any shorting powers to their external equities fund managers. They do not have any exposure to hedge funds that short stocks. “The currency hedging programme, set up in 2007, is designed to protect the sterling value of the commissioners’ foreign currency denominated assets. The commissioners invest in a wide range of equities, including those of mining, oil and financial companies, as part of a broadly diversified asset base.” Evangelical leaders came out in support of the two archbishops as Dr Sentamu last night prepared to preach in New York and speak at the United Nations on the importance of the Millennium Development Goals, aimed at eradicating poverty. The Rev Joel Edwards, of Micah Challenge International, a global Christian campaign that works to challenge international leaders to achieve its goals, said: “Archbishop Sentamu’s challenge goes to the heart of the issue. The current financial crisis has demonstrated not only the degree of our self-interest and human greed in the West, but also our abject reluctance to rise to the challenges of taking our promises seriously.” David Muir, public policy director at the Evangelical Alliance, said: “We live to consume and now our greed is consuming us. We are reaping the consequences of always wanting more.” Collection box - £2.25bn portfolio of company shares held by the Church of England - 123,000 acres of agricultural land, worth an estimated £237 million, also owned by the Church. - About 31 per cent of its assets are invested in property - 85% of all the listed places of worship in England are owned by the Church - £250m has been spent by the Church of England since 1996 on repairing churches around the country - £177m annual estimated income of the Church - £5.7bn estimated value of Church’s central assets Sources: Times database; Centre for Citizenship http://www.timesonline.co.uk/tol/comment/faith/article4828516.ece FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Seven Days That Shook Wall Street

A look back at the historic-and often scary-events that changed the U.S. financial system forever BUSINESS WEEK [McGraw-Hill] - By Phil Mintz - September 19, 2008 It was the week that shook the financial world to the core. On Friday, Sept. 12, traders left the New York Stock Exchange for the weekend. But key banking officials, facing the impending failure of the venerable Lehman Brothers investment house and a shaky outlook for two other huge financial players-investment firm Merrill Lynch (MER) and insurance giant American International Group (AIG)-began a series of weekend meetings in an effort to prevent a possible collapse of the global financial system. Over the next seven days, the nation's financial leaders, captained by Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke, produced a rapid succession of moves that reversed a decades-long trend toward financial deregulation and fundamentally changed the face of the American financial system. Lehman failed and Merrill was sold to Bank of America (BAC). The government took effective control of AIG in an $85 billion bailout. And, in the biggest intervention of all, officials proposed to purchase the troubled mortgage assets of financial firms, a move that could cost hundreds of billions of additional dollars. Meanwhile, worried investors sent the stock markets into a dizzying ride of huge gains and losses. Here's how the events unfolded: Friday, Sept. 12: The trading week ends with the fate of 158-year-old Lehman Brothers in grave doubt. Its stock had fallen sharply due to fears over its financial condition. Paulson, Bernanke, and New York Fed President Tim Geithner begin a series of meetings in Lower Manhattan with top bankers in an effort to engineer a bailout of Lehman, which had bet heavily in the subprime mortgage market. Two possible buyers emerge: Britain's Barclays (BCS) and Bank of America. Saturday, Sept. 13: Talks on a possible Lehman buyout continue. The would-be rescuers look to the government to take on some of the risk, as it did in the shotgun sale of Bear Stearns to JPMorgan Chase (JPM) in March and the effective nationalization on Sept. 8 of mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE). Government officials hold fast that there will be no federal bailout. Talks are inconclusive. Sunday, Sept. 14: The negotiators continue meeting, facing a deadline to act before Asian markets open for Monday morning trading. But government officials insist there will be no federal backing of a Lehman rescue. With no help from Washington forthcoming, Barclays-the only possibility left after Bank of America leaves the table-withdraws. Lehman is done for. Meanwhile, Merrill Lynch CEO John Thain, seeing the writing on the wall, arranges the sale of his company to Bank of America for about $50 billion. In one day, the fates of two storied companies are sealed. Monday, Sept. 15: Lehman Brothers Holdings, the bank's holding company, files for Chapter 11 bankruptcy protection and says it will try to sell key business units. Investor concern now turns to the fate of AIG, fearing a liquidity crisis. Rating agencies cut AIG's credit rating. Despite reassurances about the economy from Paulson and President George W. Bush, the stock market plummets. The Dow Jones industrial average drops more than 504 points, or 4.4%, the biggest loss since right after the September 11, 2001, terror attacks. The failure also roils overseas stocks, sending them plunging. Meanwhile, concerns about a slowing economy take oil below the psychological benchmark of $100 a barrel, its lowest level since February. Tuesday, Sept. 16: The Federal Reserve meets and keeps the federal funds rate unchanged at 2%. Asian markets, some of which had been closed for a holiday on Monday, plummet. The Russian stock market goes into a tailspin, with the largest exchange down more than 17% before the Russian government halts trading. Managers of the Primary Fund, a supposedly supersafe money market fund, say that shares have fallen below the sacrosanct $1 valuation. Meanwhile, Goldman Sachs (GS) and Morgan Stanley (MS), the two remaining independent investment banks, report stronger-than-expected results. However, investors continue to beat down the companies' shares. Amid all the turbulence, U.S. officials decide that AIG is indeed "too big to fail." In a move that would have been unthinkable before the credit crisis began, the Fed arranges to lend $85 billion to AIG in exchange for a 79.9% equity stake. The deal is announced Tuesday evening. Even before the deal is finalized, the Dow reverses an earlier loss and gains 141 points. Wednesday, Sept. 17: The government bailout of AIG fails to stem investor fears as they flee to safety. Credit markets tighten. The New York Times reports that Washington Mutual (WM), the nation's largest thrift, has put itself up for sale. The Dow plunges 449 points. Thursday, Sept. 18: The New York Times reports that Morgan Stanley has "stepped up" merger talks with Wachovia (WB). The Fed moves to pump money into the financial system through lending programs operated by several overseas central banks and the Fed's own moves. At the same time, the government begins action on the hugest bailout of all, committing hundreds of billions of taxpayer dollars to buy troubled mortgage assets from beleaguered financial institutions. As word of the evolving plan spreads, stocks rally. The Dow closes up 410 points. In the evening, Paulson and Bernanke and Securities & Exchange Commission Chairman Christopher Cox go to the U.S. Capitol to brief lawmakers on the plan, which requires congressional authorization. Friday, Sept. 19: The buyout plan-with few firm details-is announced and stocks soar worldwide. President Bush says the move puts "a significant amount of taxpayer dollars on the line," but he says the risk of not acting "would be far higher." In additional actions, the Treasury and Fed act to guarantee the assets of money-market funds, which had been threatened by the meltdown of the financial markets, and the SEC places a temporary ban on the short-selling of nearly 799 financial stocks. The Dow closes up 368.75 points, 45 points below where it was a week earlier but still 911 points over its bottom on Thursday morning. A momentous week indeed, but there is no sign the economic drama will limit itself to a mere seven days. Lawmakers and regulators are to work through this weekend in an effort to devise bailout plan legislation that can come to a vote next week. The bipartisan consensus surrounding the deal can come undone as the details are ironed out. But for drama, it will be hard to match events that have reshaped the U.S. financial landscape for years, if not decades to come. Mintz is BusinessWeek.com's B-schools channel editor in New York. Original Report http://www.businessweek.com/print/bwdaily/dnflash/content/sep2008/db20080919_945045.htm FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

The $55 trillion question

The financial crisis has put a spotlight on the obscure world of credit default swaps - which trade in a vast, unregulated market that most people haven't heard of and even fewer understand. Will this be the next disaster? FORTUNE MAGAZINE [Time, Inc./Time Warner] - By Nicholas Varchaver, senior editor and Katie Benner, writer-reporter - September 30, 2008 As Congress wrestles with another bailout bill to try to contain the financial contagion, there's a potential killer bug out there whose next movement can't be predicted: the Credit Default Swap. In just over a decade these privately traded derivatives contracts have ballooned from nothing into a $54.6 trillion market. CDS are the fastest-growing major type of financial derivatives. More important, they've played a critical role in the unfolding financial crisis. First, by ostensibly providing "insurance" on risky mortgage bonds, they encouraged and enabled reckless behavior during the housing bubble. "If CDS had been taken out of play, companies would've said, 'I can't get this [risk] off my books,'" says Michael Greenberger, a University of Maryland law professor and former director of trading and markets at the Commodity Futures Trading Commission. "If they couldn't keep passing the risk down the line, those guys would've been stopped in their tracks. The ultimate assurance for issuing all this stuff was, 'It's insured.'" Second, terror at the potential for a financial Ebola virus radiating out from a failing institution and infecting dozens or hundreds of other companies - all linked to one another by CDS and other instruments - was a major reason that regulators stepped in to bail out Bear Stearns and buy out AIG (AIG, Fortune 500), whose calamitous descent itself was triggered by losses on its CDS contracts (see "Hank's Last Stand"). And the fear of a CDS catastrophe still haunts the markets. For starters, nobody knows how federal intervention might ripple through this chain of contracts. And meanwhile, as we'll see, two fundamental aspects of the CDS market - that it is unregulated, and that almost nothing is disclosed publicly - may be about to change. That adds even more uncertainty to the equation. "The big problem is that here are all these public companies - banks and corporations - and no one really knows what exposure they've got from the CDS contracts," says Frank Partnoy, a law professor at the University of San Diego and former Morgan Stanley derivatives salesman who has been writing about the dangers of CDS and their ilk for a decade. "The really scary part is that we don't have a clue." Chris Wolf, a co-manager of Cogo Wolf, a hedge fund of funds, compares them to one of the great mysteries of astrophysics: "This has become essentially the dark matter of the financial universe." *** AT FIRST GLANCE, credit default swaps don't look all that scary. A CDS is just a contract: The "buyer" plunks down something that resembles a premium, and the "seller" agrees to make a specific payment if a particular event, such as a bond default, occurs. Used soberly, CDS offer concrete benefits: If you're holding bonds and you're worried that the issuer won't be able to pay, buying CDS should cover your loss. "CDS serve a very useful function of allowing financial markets to efficiently transfer credit risk," argues Sunil Hirani, the CEO of Creditex, one of a handful of marketplaces that trade the contracts. Because they're contracts rather than securities or insurance, CDS are easy to create: Often deals are done in a one-minute phone conversation or an instant message. Many technical aspects of CDS, such as the typical five-year term, have been standardized by the International Swaps and Derivatives Association (ISDA). That only accelerates the process. You strike your deal, fill out some forms, and you've got yourself a $5 million - or a $100 million - contract. And as long as someone is willing to take the other side of the proposition, a CDS can cover just about anything, making it the Wall Street equivalent of those notorious Lloyds of London policies covering Liberace's hands and other esoterica. It has even become possible to purchase a CDS that would pay out if the U.S. government defaults. (Trust us when we say that if the government goes under, trying to collect will be the least of your worries.) You can guess how Wall Street cowboys responded to the opportunity to make deals that (1) can be struck in a minute, (2) require little or no cash upfront, and (3) can cover anything. Yee-haw! You can almost picture Slim Pickens in Dr. Strangelove climbing onto the H-bomb before it's released from the B-52. And indeed, the volume of CDS has exploded with nuclear force, nearly doubling every year since 2001 to reach a recent peak of $62 trillion at the end of 2007, before receding to $54.6 trillion as of June 30, according to ISDA. Take that gargantuan number with a grain of salt. It refers to the face value of all outstanding contracts. But many players in the market hold offsetting positions. So if, in theory, every entity that owns CDS had to settle its contracts tomorrow and "netted" all its positions against each other, a much smaller amount of money would change hands. But even a tiny fraction of that $54.6 trillion would still be a daunting sum. The credit freeze and then the Bear disaster explain the drop in outstanding CDS contracts during the first half of the year - and the market has only worsened since. CDS contracts on widely held debt, such as General Motors' (GM, Fortune 500), continue to be actively bought and sold. But traders say almost no new contracts are being written on any but the most liquid debt issues right now, in part because nobody wants to put money at risk and because nobody knows what Washington will do and how that will affect the market. ("There's nothing to do but watch Bernanke on TV," one trader told Fortune during the week when the Fed chairman was going before Congress to push the mortgage bailout.) So, after nearly a decade of exponential growth, the CDS market is poised for its first sustained contraction. *** ONE REASON THE MARKET TOOK OFF is that you don't have to own a bond to buy a CDS on it - anyone can place a bet on whether a bond will fail. Indeed the majority of CDS now consists of bets on other people's debt. That's why it's possible for the market to be so big: The $54.6 trillion in CDS contracts completely dwarfs total corporate debt, which the Securities Industry and Financial Markets Association puts at $6.2 trillion, and the $10 trillion it counts in all forms of asset-backed debt. "It's sort of like I think you're a bad driver and you're going to crash your car," says Greenberger, formerly of the CFTC. "So I go to an insurance company and get collision insurance on your car because I think it'll crash and I'll collect on it." That's precisely what the biggest winners in the subprime debacle did. Hedge fund star John Paulson of Paulson & Co., for example, made $15 billion in 2007, largely by using CDS to bet that other investors' subprime mortgage bonds would default. So what started out as a vehicle for hedging ended up giving investors a cheap, easy way to wager on almost any event in the credit markets. In effect, credit default swaps became the world's largest casino. As Christopher Whalen, a managing director of Institutional Risk Analytics, observes, "To be generous, you could call it an unregulated, uncapitalized insurance market. But really, you would call it a gaming contract." There is at least one key difference between casino gambling and CDS trading: Gambling has strict government regulation. The federal government has long shied away from any oversight of CDS. The CFTC floated the idea of taking an oversight role in the late '90s, only to find itself opposed by Federal Reserve chairman Alan Greenspan and others. Then, in 2000, Congress, with the support of Greenspan and Treasury Secretary Lawrence Summers, passed a bill prohibiting all federal and most state regulation of CDS and other derivatives. In a press release at the time, co-sponsor Senator Phil Gramm - most recently in the news when he stepped down as John McCain's campaign co-chair this summer after calling people who talk about a recession "whiners" - crowed that the new law "protects financial institutions from over-regulation ... and it guarantees that the United States will maintain its global dominance of financial markets." (The authors of the legislation were so bent on warding off regulation that they had the bill specify that it would "supersede and preempt the application of any state or local law that prohibits gaming ...") Not everyone was as sanguine as Gramm. In 2003 Warren Buffett famously called derivatives "financial weapons of mass destruction." *** THERE'S ANOTHER BIG difference between trading CDS and casino gambling. When you put $10 on black 22, you're pretty sure the casino will pay off if you win. The CDS market offers no such assurance. One reason the market grew so quickly was that hedge funds poured in, sensing easy money. And not just big, well-established hedge funds but a lot of upstarts. So in some cases, giant financial institutions were counting on collecting money from institutions only slightly more solvent than your average minimart. The danger, of course, is that if a hedge fund suddenly has to pay off on a lot of CDS, it will simply go out of business. "People have been insuring risks that they can't insure," says Peter Schiff, the president of Euro Pacific Capital and author of Crash Proof, which predicted doom for Fannie and Freddie, among other things. "Let's say you're writing fire insurance policies, and every time you get the [premium], you spend it. You just assume that no houses are going to burn down. And all of a sudden there's a huge fire and they all burn down. What do you do? You just close up shop." This is not an academic concern. Wachovia (WB, Fortune 500) and Citigroup (C, Fortune 500) are wrangling in court with a $50 million hedge fund located in the Channel Islands. The reason: A dispute over two $10 million credit default swaps covering some CDOs. The specifics of the spat aren't important. What's most revealing is that these massive banks put their faith in a Lilliputian fund (in an inaccessible jurisdiction) that was risking 40% of its capital for just two CDS. Can anyone imagine that Citi would, say, insure its headquarters building with a thinly capitalized, unregulated, offshore entity? That's one element of what's known as "counterparty risk." Here's another: In many cases, you don't even know who has the other side of your bet. Parties to the contract can, and do, transfer their side of the contract to third parties. Investment firms assert that transfers are well documented (a claim that, like most in the world of CDS, is impossible to verify). But even if that's true, you're still left with the fact that a given company's risks are being dispersed in ways that they may not know about and can't control. It doesn't help that CDS trading is a haphazard process. Most contracts are bought and sold over the phone or by instant message and settled manually. Settlement has been sloppy, confirms Jamie Cawley of IDX Capital, a firm that brokers trades between big banks. Pushed by New York Fed president Timothy Geithner, the players have been improving the process. But even as recently as a year ago, Cawley says, so many trades were sitting around unfulfilled that "there were $1 trillion worth of swaps that were unsettled among counterparties." Trade settlement is not the only anachronistic aspect of CDS trading. Consider what will happen with CDS contracts relating to Fannie Mae and Freddie Mac. The two were placed in conservatorship on Sept. 7. But the value of many contracts won't be determined till Oct. 6, when an auction will set a cash price for Fannie and Freddie bonds. We'll spare you the technical reasons, but suffice it to ask: Can you imagine any other major market that would need a month to resolve something like this? *** WITH WASHINGTON SUDDENLY in a frenzy of outrage over the financial markets, debating everything from the shape and extent of the mortgage plan to what should be done about short-selling, the future for CDS is very blurry. "The market is here to stay," asserts Cawley. The question is simply: What sorts of changes are in store? As this article was going to press, SEC chairman Christopher Cox asked the Senate to allow his agency to begin regulating CDS - mostly, it should be said, to rein in short-selling. And the SEC separately announced that it was expanding its investigation of market manipulation, which initially targeted the short-sellers, to CDS investors. Under other circumstances, Cox's request might have been met with polite silence. But the convulsions over the mortgage bailout are so dramatic that they are reminiscent of the moment, soon after the Enron scandal, when Congress drafted the Sarbanes-Oxley legislation. The desire to blame short-sellers may actually result in powers for Cox that, until very recently, he showed no signs of wanting. Should legislators wade into this issue, the measures most widely seen as necessary are straightforward: some form of centralized trading or clearing and some form of capital or reserve requirements. Meanwhile, New York State's insurance commissioner, Eric Dinallo, announced new regulations that would essentially treat sellers of some (but not all) CDS as insurance entities, thereby forcing them to set aside reserves and otherwise follow state insurance law - requirements that would probably drive many participants from the market. Whether CDS players will find a way to challenge the rules remains to be seen. (ISDA, the industry's trade group, has already gone on record in opposition to Cox's proposal.) If nothing else, the New York law may provide additional impetus for the feds to take action. For now, the biggest impact could come from the Financial Accounting Standards Board. It is implementing a new rule in November that will require sellers of CDS and other credit derivatives to report detailed information, including their maximum payouts and reasons for entering the contracts, as well as assets that might allow them to offset any payouts. Anybody who has tried to parse CEO compensation in recent years knows that more disclosure doesn't guarantee clarity, but any increase in information in the CDS realm will be a benefit. Perhaps that would limit the baleful effect of CDS on (must we consider it?) the next disaster - or even help us prevent it. http://money.cnn.com/2008/09/30/magazines/fortune/varchaver_derivatives_short.fortune/index.htm FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

An Ex-Leader in Congress Is Now Turkey’s Man in the Lobbies of Capitol Hill

Ed Note: This report covers Turkey’s hiring of a former United States Congressman as a professional lobbyist to do it’s bidding in Washington D.C. as well as its successes it spite of the not so truthful, one could say ‘historical revisionist’ pursuits. However, that never stopped the unethical evil beast we call “government” here in America. BE/\LERT! NEW YORK TIMES [NYTimes Group/Sulzberger] - By Marilyn W. Thompson - October 17, 2007 WASHINGTON, Oct. 16 - Since leaving Capitol Hill in 1999, former Representative Robert L. Livingston has been the main lobbyist for Turkey in blocking Congressional efforts to pass an Armenian genocide resolution. After succeeding twice before - and collecting more than $12 million in fees for his firm, the Livingston Group - he is pushing once again for his client. In recent months, Mr. Livingston, a Louisiana Republican who was once speaker-designate of the House, has consulted with Vice President Dick Cheney and with Karl Rove, when he was still the top White House political strategist. He escorted Turkish dignitaries to Capitol Hill to warn that the resolution threatened to destroy a strong Iraq war alliance. He made a phone call that helped persuade a Louisiana member to change his position and got other Republicans to remove their names from a growing list of co-sponsors. And he courted a powerful Democrat, Representative John P. Murtha of Pennsylvania, who earlier this year asked Speaker Nancy Pelosi, a fellow Democrat, not to bring the measure up for a House vote. Mr. Livingston has also showered money on House and Senate members, the National Republican Congressional Committee and other political causes. He and his firm gave more than $200,000 in campaign donations in the last election cycle, records show. Last week, the House Foreign Affairs Committee passed a nonbinding resolution condemning as genocide the killing of 1.5 million Armenians by Ottoman Turks beginning in 1915. Ms. Pelosi, a strong supporter, promised Sunday to bring the matter up for a floor vote before Congress recesses in mid-November. But this week, a surge of defections by members who backed the resolution showed that Mr. Livingston’s high-powered effort was gaining momentum. As Turkey reacted angrily to the House committee action in the last few days, members began responding to arguments that the resolution posed a national security threat. Those arguments were put forth by the Bush administration, Mr. Livingston and another prominent lobbyist, Richard A. Gephardt, of Missouri, the former House majority leader and a Democrat. The issue has pitted Turkey’s money and high-placed connections against a persistent and emotional campaign by Armenian-American citizens’ groups. “The Turks have done everything they possibly could,” said former Representative Stephen J. Solarz, whose firm got $165,000 this summer lobbying for Turkey under an arrangement with Mr. Livingston. Representative Adam B. Schiff, Democrat of California, a resolution sponsor, called Turkey’s lobbying “the most intense I’ve ever seen.” Both Mr. Livingston, who opposed a genocide resolution while in Congress, and Mr. Gephardt declined to discuss their work for Turkey, referring questions to the Turkish Embassy. But records filed at the Justice Department show Turkish expenditures since August 2006 of about $3.2 million for lobbyists and public relations firms. In Mr. Livingston’s case, the reports offer details of his lobbying efforts. Mr. Gephardt, a senior counsel at the law firm of DLA Piper who retired from Congress in 2005, began working for Turkey in March under a yearlong contract worth $1.2 million. He has been criticized by Armenian-Americans because he previously supported Armenia and co-sponsored an earlier genocide resolution. - - - - http://www.nytimes.com/2007/10/17/washington/17lobby.html?ex=1350360000&en=1b4139ccbdff7c60&ei=5124&partner=permalink&exprod=permalink FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Saudis give big to U.S. colleges

THE WASHINGTON TIMES [News World Communications/Moon-Unification Church] - By Julia Duin - December 10, 2007 Two years ago this month, a Saudi prince caused a media splash — and raised eyebrows — when he donated $20 million each to Georgetown and Harvard universities to fund Islamic studies. Although few details have been released about how the money has been spent, at Georgetown, the money helped pay for a recent symposium on Islamic-Western relations held in the university's Copley Formal Lounge. The event attracted about 120 persons: students, Catholic priests, men in business suits and several women in colorful head scarves who all came to hear religion experts from several American universities, as well as from Bosnia, Ireland and Malaysia. A member of the Norwegian royal family said he flew in just for the event. "I just came here to learn the language scholars are using about these things," Prince Haakon of Norway said. Some call the Saudi gift Arab generosity and gratitude for the years American universities have educated the elite of the Arab world. Others say the sheer size of the donations amounts to buying influence and creating bastions of noncritical pro-Islamic scholarship within academia. "There's a possibility these campuses aren't getting gifts, they're getting investments," said Clifford May, president of the Foundation for the Defense of Democracies. "Departments on Middle Eastern studies tend to be dominated by professors tuned to the concerns of Arab and Muslim rulers. It's very difficult for scholars who don't follow this line to get jobs and tenure on college campuses. "The relationship between these departments and the money that pours in is hard to establish, but like campaign finance reform, sometimes money is a bribe. Sometimes it's a tip." The $40 million gift from the Saudi donor, Prince Alwaleed bin Talal, was the latest in a tradition that started in the 1970s — Muslim donors pumping millions of dollars into American universities to fund Islamic studies, hire faculty specialists in Islam and fund books and seminars on the world's second-largest religion. Friends in the right places This summer, Harvard appointed its Islamic history professor, Roy Mottahedeh, to head its Prince Alwaleed bin Talal Islamic Studies Program. Harvard is hiring the first of four endowed chairs in the program and is using some of the $20 million to preserve a collection of Islamic documents. On Nov. 3, the university hosted its first Islamic studies conference — named after Prince Alwaleed — on "Interpreting the Islamic Tradition in the Contemporary World." Harvard would not provide additional details about the disbursement of the funds, nor would Mr. Mottahedeh respond to numerous requests for an interview. At Georgetown, the money was funneled toward its Center for Muslim-Christian Understanding, which was quickly renamed the Prince Alwaleed bin Talal Center for Muslim-Christian Understanding. The center, part of the Edmund A. Walsh School of Foreign Service, trains many of America"s diplomats. The Alwaleed Center is tucked away in a small suite of offices in the Bunn Intercultural Center. Its reception area is decorated with blue and white Pakistani tile, a framed page from the Koran and mother-of-pearl depictions of a menorah, the Nativity and the Dome of the Rock. The center's aim, according to its mission statement, is to "improve relations between the Muslim world and the West and enhance understanding of Muslims in the West." The center's director, John Esposito, a prolific writer and praised by many as being a national authority on the religion, was severely criticized by several scholars for downplaying the threat of Islamic terrorism in the 1990s when he was a foreign affairs analyst for the State Department. Mr. Esposito, "more than any other academic, contributed to American complacency prior to 9/11," Martin Kramer, a fellow at the Olin Institute at Harvard, wrote in a Jan. 2, 2006, commentary on his blog, sandbox.blog-city.com. "[He has] proved that he's still a magnet for Arab and Muslim money," Mr. Kramer wrote. "Prince Alwaleed apparently decided that while Esposito's reputation may be dented, the professor still has some value in him." Mr. Esposito declined to be interviewed for this article but did defend himself in several e-mails. "Two of my books, including 'Unholy War,' were among the eight books recommended by [U.S. Army] Lt. Gen. John Vines to his senior staff when he took over command in Iraq," he wrote. "[My article] 'What Makes a Muslim Radical' in Foreign Policy received the most hits of any of its publications, more that 100,000 in the year it was published." Mr. Esposito said the number of programs sponsored by his center went from 27 last year to 22 this semester alone. The first of three new faculty, Ibrahim Kalin, a scholar on Sufiism and Islamic philosophy, is slated to come on board next fall. A month before the gift was publicly announced, Mr. Esposito was one of four persons flanking Prince Alwaleed before a photographer at the George V hotel in Paris. It was then that the prince told Georgetown officials of their $20 million windfall — and that Mr. Esposito would oversee how the money was spent. Spreading the wealth Winfield Myers, director of Campus Watch, a watchdog group under the aegis of the Middle East Forum think tank, said it's too early to tell whether the prince is getting his money's worth. One sign of success is if a university can place its recent doctoral graduates in positions of influence. "The prince knew very well Georgetown's in a milieu filled with lobbyists and opinion makers; thus any program of his will exert more influence there than at a university not in a power center like Washington," Mr. Meyers said. "The grant also gave Esposito a much bigger microphone. When you've got a $20 million institute, that amplifies your voice considerably." The Saudi Embassy's press office did not respond to requests for comment on this article, and a spokeswoman for Prince Alwaleed said he was "too busy" to respond. According to one Saudi press organization, the grants are meant to promote understanding and change America's perceptions of Islam in the most fertile place, the university campus. "The tendency, in some quarters, to identify Islam with fanaticism or even terrorism persists and has not been completely erased from the popular mind in the West," observed a commentator in a March 1, 2002, article in Ain al-Yaqeen, a weekly controlled by the Saudi royal family. To that end, it continued, the late Saudi King Fahd paid for a "number of academic chairs in some of the most respected universities in the developed world." The practice started around 1976, when the Saudi government established a King Faisal Chair in Islamic Studies for $1 million at the University of Southern California. In 1979, Saudi Aramco World magazine published a list of recent Middle Eastern gifts, including $200,000 from the Saudis to Duke University for a program in Islamic and Arabian development studies; $750,000 from the Libyan government for a chair of Arab culture at Georgetown University; and $250,000 from the United Arab Emirates for a visiting professorship of Arab history, also at Georgetown. In 1986, Saudi arms dealer Adnan Khashoggi donated $5 million toward a sports center to be named after him at American University. Since then, grants for endowed chairs in Islamic studies and Middle Eastern studies centers have popped up at the University of California/Santa Barbara; Columbia University; Rice University; University of Arkansas; University of California in Los Angeles; and the University of California/Berkeley, among many others. "Arab studies at Berkeley were totally revitalized by this money," said Emily Gottreich, vice chairman for UC/Berkeley's Center for Middle Eastern Studies. "We redefined what Arab studies is." In 1998, the Sultan bin Abdulaziz al Saud Foundation announced a $5 million gift to fund visiting professors and scholars, research and outreach funds and new quarters for Berkeley's Arab and Islamic Studies Center. "Our post-docs have gone on to important tenure-track academic jobs," Ms. Gottreich said, listing 11 institutions, including Oxford, DePaul, Fordham and Harvard universities. "There's a market out there for PhDs with expertise in the Middle East." Occasionally, universities have been embarrassed by offers and declined such gifts. In July 2000, the Harvard Divinity School accepted $2.5 million from the ruler of the United Arab Emirates, Sheik Zayed bin Sultan al-Nahyan, to endow an academic chair in Islamic Religious Studies. However, Rachel Fish, a divinity student, began a protest, accusing the sheik of funding an anti-Semitic think tank in his capital, Abu Dhabi. Harvard officials said they would reconsider accepting the gift. In 2004, the sheik withdrew the funds. Funding points of view The idea of giving endowed chairs to advance a point of view is not exclusive to wealthy Arabs. Claremont University recently announced a new chair in Mormon studies, funded by $1 million in donations mostly from Mormons. In June, Brandeis University announced a $15 million gift from the Charles and Lynn Schusterman Family Foundation for Israeli studies to counter what university president Jehuda Reinharz called an "astounding ignorance" of Israeli affairs, even among American Jews. The Israel on Campus Coalition, a group of Jewish organizations, released a study earlier this year saying out of about 4,000 American institutions of higher learning, only nine have Israel studies centers, nine have Israel studies chairs, and 16 have visiting professors teaching about Israel. There are 17 federally funded centers on American college campuses devoted solely to Middle Eastern studies centers and another 30 to 40 that do not receive federal aid, according to Amy Newhall, executive director of the Middle East Studies Association at the University of Arizona. Not counting several positions at Georgetown University, she estimated at least 10 chaired professorships currently funded by Saudis at major universities. "With all the talk of the Israel lobby, no one talks about the Saudi lobby," Mr. Meyers said. "There is no counterweight to Saudi influence in American higher education." Indeed, Ain-al-Yaqeen reported that King Fahd has spent "billions of Saudi riyals," around the world. "In terms of Islamic institutions, the result is some 210 Islamic centers wholly or partly financed by Saudi Arabia, more than 1,500 mosques and 202 colleges and almost 2,000 schools for educating Muslim children in non-Islamic countries in Europe, North and South America, Australia and Asia," the paper reported. The billionaire prince Mr. Kramer, also the author of "Ivory Towers on Sand: The Failure of Middle Eastern Studies in America," says American universities have allowed themselves to be purveyors of Saudi influence and opinion. "Universities generate ideas, and [Prince Alwaleed] regards one idea — the 'clash of civilizations" — as positively dangerous to Arabs and Muslims," he wrote on his Web site, martinkramer.org. "So he has embarked on a grand giving spree, to create academic 'bridges" between Islam and the West, and specifically between the Arab world and the United States ... "The mind boggles at the possibilities, when you think of the purchasing power of the world's fifth-richest man," Mr. Kramer continued. "Of course, this is why we can't ever expect to get the straight story on Saudi Arabia, Wahhabism and oil from people who operate within Middle Eastern studies. If you want a fabulously wealthy Saudi royal to drop out of the sky in his private jet and leave a few million, you had better watch what you say — which means you had better say nothing." Prince Alwaleed, 52, — who slipped from the fifth richest person in 2005 to the 13th this year, according to Forbes magazine — is best known to some Americans as the man who offered $10 million to the victims of the September 11 attacks on the World Trade Center in New York City. That money was rejected by Rudolph W. Giuliani, then the mayor, after the prince scolded the U.S. for favoring Israelis over Palestinians. Prince Alwaleed found more welcoming recipients in academia. In 2002, he donated $500,000 to the George Herbert Walker Bush Scholarship Fund, established by the Phillips Academy in Andover, Mass. In 2006, he donated $10 million to the Weill Medical College of Cornell University. He defends such gifts in interviews, saying that he has financed study programs about American culture overseas, including a $10 million gift to found a Center for American Studies at American University in Cairo and $5.2 million for a similar center at American University in Beirut. Prince Alwaleed's Cairo and Beirut projects explain American culture, but according to their Web sites, offer no courses in Christianity — America's majority religion. Meanwhile, typical courses at the Georgetown center are "Islamic Theological Development" and "Islamic Religious Thought and Practice." Zuhdi Jasser, a Phoenix physician and a Muslim who is chairman of the American Islamic Forum for Democracy, says Islamic governments are looking for a free pass. "Islamists such as the radical fundamentalists seen with the Saudi Wahhabis exploit American universal tolerance to provide a vehicle for the dissemination of their propaganda free of critique," he said in an e-mail. "It is important to emphasize — 'free of critique' ... it is the tolerance which permits that. "But I would hope that we correct our response not by changing our tolerance but by intensely critiquing political Islam and its incompatibility with our pluralistic democracy. America"s laboratory of freedom and liberty should not change." http://www.washingtontimes.com/apps/pbcs.dll/article?AID=/20071210/SPECIAL/112100027/1001&template=printart FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Discovery backs theory oil not 'fossil fuel'

Revelation 11:18 "And the nations were enraged, and Your wrath came, and the time came...to destroy those who destroy the earth." New evidence supports premise that Earth produces endless supply WORLDNETDAILY - By Jerome R. Corsi - February 1, 2008 A study published in Science Magazine today presents new evidence supporting the abiotic theory for the origin of oil, which asserts oil is a natural product the Earth generates constantly rather than a "fossil fuel" derived from decaying ancient forests and dead dinosaurs. The lead scientist on the study – Giora Proskurowski of the School of Oceanography at the University of Washington in Seattle – says the hydrogen-rich fluids venting at the bottom of the Atlantic Ocean in the Lost City Hydrothermal Field were produced by the abiotic synthesis of hydrocarbons in the mantle of the earth. The abiotic theory of the origin of oil directly challenges the conventional scientific theory that hydrocarbons are organic in nature, created by the deterioration of biological material deposited millions of years ago in sedimentary rock and converted to hydrocarbons under intense heat and pressure. While organic theorists have posited that the material required to produce hydrocarbons in sedimentary rock came from dinosaurs and ancient forests, more recent argument have suggested living organisms as small as plankton may have been the origin. The abiotic theory argues, in contrast, that hydrocarbons are naturally produced on a continual basis throughout the solar system, including within the mantle of the earth. The advocates believe the oil seeps up through bedrock cracks to deposit in sedimentary rock. Traditional petro-geologists, they say, have confused the rock as the originator rather than the depository of the hydrocarbons. Lost City is a hypothermal field some 2,100 feet below sea level that sits along the Mid-Atlantic Ridge at the center of the Atlantic Ocean, noted for strange 90 to 200 foot white towers on the sea bottom. In 2003 and again in 2005, Proskurowski and his team descended in a scientific submarine to collect liquid bubbling up from Lost City sea vents. Proskurowski found hydrocarbons containing carbon-13 isotopes that appeared to be formed from the mantle of the Earth, rather than from biological material settled on the ocean floor. Carbon 13 is the carbon isotope scientists associate with abiotic origin, compared to Carbon 12 that scientists typically associate with biological origin. Proskurowski argued that the hydrocarbons found in the natural hydrothermal fluids coming out of the Lost City sea vents is attributable to abiotic production by Fischer-Tropsch, or FTT, reactions. The Fischer-Tropsch equations were first developed by Nazi scientists who created methodologies for producing synthetic oil from coal. "Our findings illustrate that the abiotic synthesis of hydrocarbons in nature may occur in the presence of ultramafic rocks, water and moderate amounts of heat," Proskurowski wrote. The study also confirmed a major argument of Cornell University physicist Thomas Gold, who argued in his book "The Deep Hot Biosphere: The Myth of Fossil Fuels" that micro-organisms found in oil might have come from the mantle of the earth where, absent photosynthesis, the micro-organisms feed on hydrocarbons arising from the earth's mantle in the dark depths of the ocean floors. Affirming this point, Proskurowski concluded the article by noting, "Hydrocarbon production by FTT could be a common means for producing precursors of life-essential building blocks in ocean-floor environments or wherever warm ultramafic rocks are in contact with water." Finding abiotic hydrocarbons in the Lost City sea vent fluids is the second discovery in recent years adding weight to the abiotic theory of the origin of oil. As WND reported in 2005, a NASA probe to Titan, the giant moon of Saturn, discovered abundant Carbon-13 methane that the agency declared to be abiotic in origin. http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=59991 FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.