Goebbels Rides Again & Wall Street Ponzi "Bubble" Schemes

Is Rupert Murdoch the modern day Goebbels? What follows is why I don't read the Wall Street Journal anymore. Not that this is new news.

“A cultural Chernobyl,” is how the German investigative journalist Reiner Luyken, based in London, described Murdoch’s effect on British life. Of course, there is a colourful Fleet Street history of lies, damn lies, but no proprietor ever attained the infectious power of Murdoch’s putrescence. To public truth and decency and freedom, he is as the dunghill is to the blowfly. The rich and famous can usually defend themselves with expensive libel actions; but most of Murdoch’s victims are people like the Hillsborough parents, who suffer without recourse.

The Murdoch “ethos” was demonstrated right from the beginning of his career, as Richard Neville has documented. In 1964, his Sydney tabloid, the Daily Mirror, published the diary of a 14-year-old schoolgirl under the headline, “WE HAVE SCHOOLGIRL’S ORGY DIARY”. A 13-year-old boy, who was identified, was expelled from the same school. Soon afterwards, he hanged himself from his mother’s clothesline. The “sex diary” was subsequently found to be fake. Soon after Murdoch bought the News of the World in 1971, a strikingly similar episode involving an adolescent diary led to the suicide of a 15-year-old girl. And Murdoch himself said, of the industrial killing of innocent men, women and children in Iraq: “There is going to be collateral damage. And if you really want to be brutal about it, better we get it done now . . .”

His most successful war has been on journalism itself. A leading Murdoch retainer, Andrew Neil, the Kelvin MacKenzie of the Sunday Times, conducted one of his master’s most notorious smear campaigns against ITV (like the BBC, a “monopoly” standing in Murdoch’s way). In 1988, the ITV company Thames Television made Death on the Rock, an investigative documentary that lifted a veil on the British secret state under Margaret Thatcher, describing how an SAS team had murdered four unarmed IRA members in Gibraltar with their hands in the air.

The message was clear: Thatcher was willing to use death squads. The Sunday Times and the Sun, side by side in Murdoch’s razor-wired Wapping fortress, echoed Thatcher’s scurrilous attacks on Thames Television and subjected the principal witness to the murders, Carmen Proetta, to a torrent of lies and personal abuse. She later won £300,000 in libel damages, and a public inquiry vindicated the programme’s accuracy and integrity. This did not prevent Thames, an innovative broadcaster, from losing its licence.

Murdoch’s most obsequious supplicants are politicians, especially New Labour. Having ensured that Murdoch pays minimal tax, and having attended the farewell party of one editor of the Sun, Gordon Brown was recently in full fawn at the wedding of another editor of the same paper. Don Corleone expects nothing less.

The hypocrisy, however, is almost magical. In 1995, Murdoch flew Tony and Cherie Blair first-class to Hayman Island, Australia, where the aspiring war criminal spoke about “the need for a new moral purpose in politics”, which included the lifting of government regulations on the media. Murdoch shook his hand warmly. The next day the Sun commented: “Mr Blair has vision, he has purpose and he speaks our language on morality and family life.”

The two are devout Christians, after all.

Of course they are. Everyone in the upper classes anyway. With power (firepower). The very good reason that Eliot Spitzer must be silenced with shame now and forever has been revealed (and why giving the Fed more power to regulate Wall Street is a joke on the poor, ignorant, unconnected U.S. citizens):

The Federal Reserve — the quasi-autonomous body that controls the US’s money supply — is a “Ponzi scheme” that created “bubble after bubble” in the US economy and needs to be held accountable for its actions, says Eliot Spitzer, the former governor and attorney-general of New York.

In a wide-ranging discussion of the bank bailouts on MSNBC’s Morning Meeting, host Dylan Ratigan described the process by which the Federal Reserve exchanged $13.9 trillion of bad bank debt for cash that it gave to the struggling banks.

Spitzer — who built a reputation as “the Sheriff of Wall Street” for his zealous prosecutions of corporate crime as New York’s attorney-general and then resigned as the state’s governor over revelations he had paid for prostitutes — seemed to agree with Ratigan that the bank bailout amounts to “America’s greatest theft and cover-up ever.”

Advocating in favor of a House bill to audit the Federal Reserve, Spitzer said: “The Federal Reserve has benefited for decades from the notion that it is quasi-autonomous, it’s supposed to be independent. Let me tell you a dirty secret: The Fed has done an absolutely disastrous job since [former Fed Chairman] Paul Volcker left.

“The reality is the Fed has blown it. Time and time again, they blew it. Bubble after bubble, they failed to understand what they were doing to the economy.

“The most poignant example for me is the AIG bailout, where they gave tens of billions of dollars that went right through — conduit payments — to the investment banks that are now solvent. We [taxpayers] didn’t get stock in those banks, they didn’t ask what was going on — this begs and cries out for hard, tough examination.

“You look at the governing structure of the New York [Federal Reserve], it was run by the very banks that got the money. This is a Ponzi scheme, an inside job. It is outrageous, it is time for Congress to say enough of this. And to give them more power now is crazy.

“The Fed needs to be examined carefully.”

Spitzer resigned as governor of New York in March, 2008, after news reports stated he had paid for a $1,000-an-hour New York City call girl.

At the time, Spitzer had been raising the alarm about sub-prime mortgages. In the wake of the economic meltdown triggered last fall by sub-prime loans, some observers have suggested that Spitzer may have been targeted by law enforcement because of his high-profile opposition to Wall Street financial policies.

Investigative reporter Greg Palast wrote that federal agents’ revealing of Spitzer’s identity as a call-girl customer was no coincidence.

Palast wrote that the principle of “prosecutorial discretion” is often used to keep the names of high-profile persons out of the media when they are tangentially linked to a criminal investigation. In the case of Spitzer, the Justice Department chose not to invoke prosecutorial discretion.

Funny thing, this ‘discretion.’ For example, Senator David Vitter, Republican of Louisiana, paid Washington DC prostitutes to put him in diapers (ewww!), yet the Senator was not exposed by the US prosecutors busting the pimp-ring that pampered him.

Naming and shaming and ruining Spitzer – rarely done in these cases - was made at the ‘discretion’ of Bush’s Justice Department.

Spitzer recently told Bloomberg News that President Obama’s regulatory reforms of the financial sector are “irrelevant” because regulatory agencies have not been enforcing corporate laws to begin with.

“Regulatory agencies already had the power to do everything they needed to do,” he said. “They just affirmatively chose not to do it.”

Suzan ______________________