FDI ILLUMINATI and FALSE RECESSION

FDI ILLUMINATI and FALSE RECESSION

Troubled Galaxy Destroyed Dreams: Chapter 162

Palash Biswas

US stimulus bill to hit Indians, H1-B visa holders
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Recovery of US economy to take years: Obama
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Railways beat downturn, growth on track
RBI to cut interest rate further: PNB
http://www.expressindia.com/latest-news/RBI-to-cut-interest-rate-further-PNB/423192/

RECESSION is FALSE as FALSE is OSAMABIN LADEN and his AL QUAEDA.

What a LIE the CHETTIYAR CHIDAMBARAM is telling! he claims that Govt's equity in PSBs will not be diluted! The Greatest UNTRUTH to soften PUBLIC mood against disinvestment drive as the term itself is used as SHOCK ABSORBER STRATEGY in PHASE by PHASE Systematic privatisation with SURGICAL PRECISION. However, Home Minister P Chidambaram said that there is no question of diluting the government's equity in public sector banks from the current 51 per cent! Then tell us Mr Chidambaram, why Indian ECONOMY is made open forward as well as BACKYARD for FDI, capital Inflow while Industrial growth rate is downturn!

Why it became MANDATORY to declare that there would be No nuclear power plants for Pvt Cos till 2020?Union minister for commerce & power Jairam Ramesh on Saturday said the private companies would not be allowed to set up nuclear power plants till 2020.

"I do not foresee a role for the private sector in the first generation of production of nuclear power of 20,000 mega watt on strategic, safety, fuel and management grounds. Expansion of nuclear energy has necessarily to be based either on Nuclear Power Corporation of India (NPCIL) or on its joint venture with public entities as only such companies could take a 10 year perspective without worrying over cash flows, borrowings or meltdown," Mr Ramesh told reporters on Saturday. He was in Mumbai to attend the signing ceremony of a memorandum of understanding between the NPCIL and National Thermal Power Corporation.

A handful of private companies, including Reliance Power, GMR Energy, GVK Power & Infrastructure, Larsen & Toubro, were planning to set up nuclear power plants. They had put their plans on the fast track after the government announced its intention to amend the law to allow them in the nuclear power generation space. However, the minister's announcement will force the private companies to shelve their plans



Public sector banks in the country will remain to be public sector banks," CHIDAMBARAM said, addressing a huge gathering after inaugurating the Union Bank of India's 2,501st branch here.

"The previous NDA government sought to dilute government equity in public sector banks to 33 per cent, which was a grave mistake. But on assuming power, the UPA government has abandoned the idea and that has energised the public sector banks," Chidambaram said.

Listing out the series of policy initiatives launched by the government to strengthen the public sector banks, he said: "We encouraged banks to raise capital from the market. Thanks to this initiative, business flourished and banks became more efficient.

"We have also enlarged the power of managements and gave large autonomy to the banks. The degree of autonomy is large and it has increased responsibility. With responsibility, accountability too increased."

Also, banks were nudged to go into new areas and double lending to agriculture and small and medium enterprises. New opportunities led to new growth as the banks rose to the occasion and met the challenges, Chidambaram noted.

RECESSION is used as the most POTENTIAL TOOL to DIVERT NATIONAL revenue! It is more than helpful to justify Capital Inflow via FREE FDI! It is the best way to allot Sops for Satyam Asatyam India Incs. EVERY ECONOMIC and political Policy Making ANTI National and ANTI People, Every GENOCIDE, Mass DESTRUCTION and ETHNIC Cleansing may be justified under the UMBRELLA of so called GLOBAL RECESSION as USA, PENTAGON and CIA creates the LOGIC of CLASH of CIVILISATION and War against Terrorism to ENRICH and Sustain the ZIONIST ILLUMINATI with the REAL HAND of PENTAGON and CIA - named AL QUAEDA! Hence even Barack OBAMA never hesitates to showcase US CRISIS as GLOBAL CRISIS!The recovery of American economy, currently reeling under the worst ever economic crisis after the Great Depression, would take years Competitive economies not months, the US President, Barack Obama has said. Addressing a meeting of top US corporate leaders, hours before the Congress finally passed the USD 789 billion stimulus package, Obama said this is the beginning of the hard work they all would have to do in coming years to bring the country's economic back on track. Meanwhile, G7 finance ministers reject protectionist measures!Rejecting protectionism, the Group of Seven finance ministers pledged Saturday to work together to support growth and employment and to strengthen the banking system so the world can overcome its worst financial crisis in 50 years. But the bad news continues. The final statement on their two-day meeting in Rome also predicts a gloomy forecast, with the severe economic downturn continuing through most of 2009. The G-7 ministers warned that any protectionist measures to boost national economies would only undermine global prosperity. They also stressed the need to support developing countries to prevent the world's poorest from being the biggest losers in the downturn.

Sebi amendment to help sale of Satyam Computer! It is the once again the logic of RECESSION to Bail OUT the IPL INDIA Incs!Satyam Computers Chairman, Kiran Karnik, on Friday welcomed the Sebi amendment to the takeover regulations. The Great Fall of Satyam

"I have not seen the Sebi amendment in great detail but welcome this move as it helps us (Satyam Board) to move quickly (on the sale process)," Karnik told reporters on the sidelines of the Nasscom summit here.

"We were waiting for Sebi to come out with its norms as it defines our further process," Karnik said.

Sebi eased takeover norms for companies whose board has been superseded by the government, under which suitors such as those for Satyam Computer need not make an open offer.

The amended rules also disallows open offers from rival bidders if an acquirer has already made an open offer.

The regulator said the amendment to the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, provides for "relaxation from the strict compliance of provisions of Chapter-III in certain cases."

Chapter-III deals with mandatory open offer if an entity acquires 15 per cent stake in a company, as also for acquisition or change of control of the company, among others.

Sebi, on an application made by a target company, said it can relax any or more provisions of this chapter if certain conditions are met. It was referring to cases where central, state government or any other regulator having superseded the board of a company.

And see, how BARRACK OBAMA opens out there!

US President Barack Obama early on Saturday hailed a $787 billion economic stimulus plan passed by Congress, calling it "a major
milestone on our road to recovery."

"This is a major milestone on our road to recovery, and I want to thank the members of Congress who came together in common purpose to make it happen," Obama said in his weekly radio address.

He promised to sign the package into law "shortly."

The comments came after the US Congress late Friday approved a 787-billion-dollar package of tax cuts and fresh spending to salvage the broken US economy, handing the president his biggest yet political victory.

The Senate voted 60-38 to pass the measure hours after it cleared the House of Representatives by a lopsided 246-183 margin, setting the stage for Obama to sign the measure into law before his self-imposed February 16 deadline.


"Passing this plan is a critical step, but as important as it is, it's only the beginning of what I think all of you understand is going to be a long and difficult process of turning our economy around," Obama said addressing an audience of top US business executives.

"To truly address this crisis, we will also need to address the crisis in our financial sector to get credit flowing again to families and businesses. We need to confront the crisis in the housing sector that's been one of the sources of our economic challenges," Obama said.


Every sector of Indian economy thrown open to foreign investment!According to the new norms, if a company is owned and controlled by Indians, it will be allowed to venture into certain sectors, despite having FDI. Now, if in a company, foreign holding is less than 50%, it will be termed as owned by Indians. If its management is controlled by Indians, it will be considered as controlled by Indians. So, even if foreign holding in a company is 49%, its investment in another downstream subsidiary company will be termed as fully domestic investment and the downstream company will be treated as an Indian company and can venture into a sector like multi-brand retail, which has not been opened to FDI till now.

How is the FACE of INDIAN ILLUMINATI? Even after the RECESSION!

Just see!

India-born steel czar Lakshmi Mittal and head of India's largest company Mukesh Ambani figure among Forbes’ list of "World's Most Powerful Billionaires" who wield a staggering authority and influence far beyond their riches.

Ranking third on the global list compiled by US business magazine is Lakshmi Mittal who "controls 10 per cent of the world's steel production through his company ArcelorMittal" despite his fortune falling $24.5 billion between March and November 2008.

"Born in India but lives in London, where his political clout often incites controversy," it said noting "In 2002, then British Prime Minister Tony Blair reportedly wrote a letter to the Romanian prime minister hinting a sale of the country's steel company to Mittal would facilitate its entrance into the European Union."

Figuring seventh on the list is Mukesh Ambani, who heads "petrochemicals giant Reliance Industries, Indian's largest company by market cap." Forbes noted he produces oil, gas, petrochemicals and textiles and is personally funding construction of a 27-story home in Mumbai that could cost $2 billion.

Giving the rationale behind the list, Forbes noted last March, there were 1,125 billionaires in the world, each wielding tremendous wealth and weight over the markets and industries in which they operate.

"But few plutocrats possess the money, economic dominance and political clout to touch-or the potential to touch-all of us," it said compiling its list with a formula based on the size and scope of the industries billionaires control, the political influence they exert and the fortunes they hold.

Heading the list is Michael Bloomberg, who as mayor of New York City — America's largest and most complex metropolis — "lords over more than 8 million people speaking 40 different languages within 305 square miles. He commands 311,000 city employees and an annual budget of $60 billion."

Behind Bloomberg is Italian Prime Minister Silvio Berlusconi, who heads a nation of 58 million people, a diversified industrial economy with a gross domestic product of $2.4 trillion and a military budget of roughly $43 billion.

But perhaps no billionaire has more control over how America spends its disposable cash than Oprah Winfrey, 20th on its list, said Forbes noting "Her daily talk show airs in 141 countries and reaches more than 46 million viewers."

Citing research compiled by two University of Maryland economics professors, Forbes said, Oprah's endorsement of Barack Obama lent him an estimated additional one million votes in the 2008 Democratic presidential primary.

Most amusing is the davelopment that The Communist Party of India (Marxist) has termed the step to liberalise foreign direct investment (FDI) guidelines “outrageous” and a “device to bypass Parliament” where legislation to amend the law to increase the cap in insurance is pending.Demanding the immediate withdrawal of the changes, the CPI(M) Polit Bureau said on Thursday that by this re-definition, FDI could be routed through “Indian companies” and not be classified as FDI. Thus, the government had “at one stroke, across the board,” nullified the sectoral caps on FDI by excluding investments by companies owned or controlled by Indians having substantial foreign capital.This step would not only compromise the economic sovereignty of the country, but also encourage the entry of speculative money flow, the Polit Bureau said.

Mind you, the DISINVESTMENT Policy and strategy was finalised during the TENURE of united front Government during 1997 - 98 in accordance with the much HYPED COMMON MINIMUM PROGRAMME dictated by CPIM and the left parties and with the FULL CONSENT of the TRADE UNIONs. Thus, we have not seen any POPLAR , FRONTAL of Trade union countrywide against the GLOBALISATION,Liberalisation and PRIVATISATION and the LPG MAFIA RULING and DESTROYING India. Moreover the Marxist ruled states of WEST BENGAL and Kerala RUN on the CAPITALIST Highway with the FUEL of FOREIGN Capital. Buddhadeb happens BRAND BUDDHA of SEZ, Chemicals, Retail Chain, Nuclear parks, land acquisition, REALTY and IT sectors, builders and Promoters! Only the Marxists led by KAYSTHA BRAHMINS prempted more than successfully anti IMPERIALIST as well as anti FASCIST Mass Resistance India which they declare as the topmost priorities of their AGENDA Political. But the Political ECONOMY tells different story!

In fact, The Manmohan Singh government's last-minute move to ease FDI norms caused a ruckus in the Lok Sabha on Friday. The Opposition lashed out at the government for making a 'clandestine move' on the eve of Parliament session to allow more foreign investment virtually in all sectors. The debate is REMINISCENT of Parliamentary NUKE Reality SHOW only missing some RAKHI SAWANT or Sambhawana SETH!

The PARLIAMENTARY Opposition is meant to mislead the MASSEs in general and Specifically those working with GOVT. SEMI GOVT. units, PSUs, POST, Banks including BLUE CHIP SBI, ONGC, RAILWAY, coal India, SAIL, dockyards, Oil companies, LIC and so on! The Privileged class has to suffer most as they never allowed to feel INSECURE thanks to Media and parliament!According to the Cabinet decision on Wednesday, equity investment routed through companies in which Indians hold majority ownership and control will now be treated as domestic equity. Congress' ally Samajwadi Party also opposed the move saying it would lead to backdoor entry of FDI in key sectors such as media and communication.

The CPM, which raised the issue as soon as the House met, had given a notice for adjournment of the question hour to discuss the issue. However, with the demand rejected, CPM leaders registered their protest at a press conference outside the House.

"At the time of recession, India is trying to import crisis from the west," CPM MP Mohammad Salim said. He alleged that the decision was being deliberately taken just ahead of the session and at a time when the Congress-led regime was nearing the end of its tenure.

"They were aware that it would not get parliamentary approval. They have opened all sectors. There is increasing dependence on foreign capital," he said.

Mr Salim said the government’s policy of lifting sectoral caps included sectors like defence, despite the presidential address emphasising on indigenous production. The party politburo had issued a statement saying it was a device to bypass Parliament, where a legislation to amend the law to raise FDI cap in insurance sector is pending.

"At one stroke, across the board, the sectoral caps on FDI have been nullified by excluding investments by companies owned or controlled by Indians having substantial foreign capital. By this re-definition, FDI can be routed through Indian companies and not be classified as FDI," the CPM said.

The BJP said it could lead to flow of "dirty money" into the country, particularly in times of recession.

BJP spokesman Prakash Javadekar said there had been opposition when FDI cap was being raised beyond 26%. "The fact is that the global financial situation today is such that even if you give such concessions, there is no likelihood of any real FDI flow coming into the country. We need real FDI. We want to also want to change the PM route and the Mauritius route that people are adopting to plough back their money," he said.

DESI ILLUMINATI ZIONIST in making INDIA Incs represented by CII, FICCI, ASSOCHAM, SEBI link GDP with FDI, Capital Inflow with Productivity. They emphasise that the PSUs lag behind in productivity and creates HURLES for Capital inflow. In accordance to them not the Government of India, but the SHARE Holders do have the sovereignty to decide th destiny of industries. Since PUBLIC Sector units including Post and Railway, Bulk of the SERVICE SECTOR, Health and Education happen to be managed by the Centre or the State governments, DISINVESTMENT pleaded to cut the GOVT. share of 51 percent and all strategies have been chalked out by the political Parties including the Marxists, TRADE Unions mostly leftist and PRIVATE Sector to bring down the GOVT. share to 26 percent with Strategic Sale, Joint Ventures, Sell out, disinvestment and CLOSE Down! Not mentioning the OIL and FUEL crisis based ECONOMY at all BOP crisis is investigated in the balance sheet of the PSUs while the PRIVATE Sector of Satyam Astyam fame, the Free Zone of FREEsenSEX based Inflatedness , Forgery in showcasing fundamentals, tax Evasion, capital diversion and clear cut Cheating lie IMMUNE to Judicial jurisdiction, criminal Investigation or parliamentary Procedure!

Budget making is in itself not TRANSPARENT! In United states of America, GOIs, deals and bailouts have to be ratified by Congress as INDO US NUKE Deal is legislated before the Presidential signature. The Deal is never ratified in Indian parliament at any styage. That is why, just before the Parliamentary Budget SESSION the Washington Planted IMPOSTER'S betrayed the Nation with a valentine day Gift of FREE FDI ILLUMINATI! Is it DEMOCRACY in iny sense?

Then remember the HUMOUR of the budgetary speech of the RLY Minister LALU BHALU! He catered DREAMs of Heaven with managerial skill to lodge unprecedented PROFIT in Rly. he is pledging BULLET TRAINS for us! majority of Indian people never knows anything about Reservation or AC class. They do travel because it is associated with Life Line, Livelihood line. For the topmost Priority they demand SECURITY. What are the condition of Indian RLY tracks? How the Level Crossings and SIGNALLING do work? What about the relief for the commuters in tarain and on the station. In an important Junction like BHUSAWAL in Maharashtra I could not get a URINAL! The speech of the RLY minister did not deal the basic issues. he was engaged in RESOURCE and VOTE mobilising with his VOTE EXPRESS via BIHAR. he boasted of the SECURITY and the COROMONDAL EXPRESS derailed the same night!

I have seen the PRINT and Electronic version of the Rly Budget. India INCs is not satisfied. But the media highlighted on Two Percent Cut in fares. Keeping in mind Global recession, media is relieved that there was NO HIKE in FREIGHT Charges. BUT Clever Lalu has managed to hike the FREIGHT Charges by TEN PERCENT before his budget speech.



Railways will have invested 2.3 trillion rupees in the five years to 2011/12, the federal railway minister Lalu Prasad said in parliament, presenting the railway budget for 2009/10.

No one asks about the Balance Sheet of Indian Rly! How the land is used and how the Premises is being used. How the constructions go on. New trains, GAZE development, new lines, alright! Everything of this is concerned with TOUGH BUSINESS. How the Business is run?

: It could well be Friday the 13th for the low-cost airline model that attracted droves of train passengers to air travel. With Lalu Last 10 railway ministers

Rail Budget 2009
Travel tips
Prasad cutting fares by 2% across all trains and airlines hiking prices, the difference between train and airline travel cost has again ballooned. In fact, for the first time since 2003 - when Air Deccan, India's first low-cost carrier (LCC), was launched - airfares are now higher than Rajdhani AC-I fares.

Even LCC fares are now at least double the AC-II ticket price. The aviation boom of past five years came mainly from converting AC-II passengers into flyers. For instance, Rajdhani's AC-II fare is now close to Rs 1,872 (Delhi-Mumbai), while current fares of LCC begin at Rs 4,800 (same route).

Now, low airfares can be availed either by booking a month in advance or looking for some special promotional fares offered by airlines from time to time to fill empty planes. New airport user charges at places like Bangalore, Hyderabad and Delhi have added to the cost of flying.

Former railways minister and chief of West Bengal's principal opposition party Trinamool Congress Mamata Banerjee Friday termed the
railway budget as an election gimmick.

"This budget is just a gimmick before the forthcoming Lok Sabha elections. It will have no justification as soon as the new government takes over," Banerjee told reporters here.

"This is not the first time such a thing has happened. Even during my tenure as railways minister in 2000, I saw just two-three months before elections all pending files coming up for review and public-friendly budgets were presented. But all went back to square one after the new government came to power."

Banerjee said the 2 percent reduction in passenger fare was a farce.

"I must say that this Re.1 reduction on tickets over Rs.50 is a trick to fool the public. Already there is a five percent cess on passenger fare. It would have helped people if at least 10 percent reduction was announced," she said.

"Also, the freight rates have not been decreased. This is the most important sector upon which the business of the country depends. So, this budget has no positive effect on industries, especially coal, oil and steel."

The Trinamool chief further said the concepts of bullet train and additional freight corridors is not new as she had already cleared the projects during her term in office.

"Besides, only three new trains have been provided for West Bengal whereas during my stint of one year and five months, the state got about 20 new trains," Banerjee said.

She, however, welcomed the proposal to transfer wagon units of Burn Standard at Burnpur and Howrah to the railways ministry, saying: "I will be very happy if this matter is taken into consideration immediately."


Globalisation and privatisation go hand in hand with the increase in Capital Inflow in the Market.Now the Ruling Hegemony has Opened all the Shutters to invite FIIs to rule India.

The Political might of FDI is associated with Global Zionist Illuminati realigned with post Modern Manusmriti Hegemony Hindutva in India. Thus manu Singhvi demands BHARAT RATNA for the BUTCHER BUSH. FDI means COMPLETE BUSH FIRE in India! Even Almighty US President may not DARE to Violate ZIONIST Norms as Obama went on and on about Pakistan, etc. but deftly skipped on by the question on exactly what country in the Mideast has the nuke, saying he wasn’t going to speculate and how he didn’t want to see things “proliferate.” Then he quickly he went on to another reporter just as Helen Thomas vainly tried to ask the question again: “the question was on what countries have them!’ Which Obama completely ignored.

The ongoing global financial crisis, becoming grimmer day by day, can adversely hit India's foreign direct investment target of USD 35 billion for the FY09. Lowering the earlier estimates, Commerce and Industry Minister Kamal Nath said on Thursday that India can mange to get FDI worth USD 30 billion foreign investment under uncertain conditions of financial world.Mr. Nath said that government would not change 49 percent cap for foreign direct investment in single-brand retail. The country received FDI flow of USD 19.7 billion in April- November lower than FDI infusion of previous year due to recession in US and European countries. The scenario changed after September, at the beginning of slowdown, when FDI slipped to USD 1.4 billion. The country just received USD 1 billion FDI in November 2008.Experts believe that global slowdown would adversely hit FDI in India and the country is unlikely to achieve FDI target of $35 billion in FY09. ICRIER Director Rajeev Kumar said, "We are certainly not going to meet the target ... Even FDI inflows could be weaker in the next fiscal as well."

Foreign Direct Investment (FDI) equity capital inflow during the last financial year till February has reached a record level of 20.1 billion dollars, which is the highest FDI into equity in the country during any year. FDI inflows received in the month of February 2008 are an unprecedented 5.671 billion dollars. The inflows in the month of February have surpassed the inflows received in any single year since 1991 barring fiscal 2006-07. The FDI inflows received in February 2008 is an increase of 712 per cent over that in February 2007. The inflows for April 2006 - February 2007 were 11.88 billion dollars. The inflows for April 2007-February 2008 at 20.137 billion dollars is thus an increase of about 70 per cent over the corresponding period of previous financial year.

It's official now. Despite having foreign direct investment (FDI) through indirect route, Indian "owned and controlled" company can venture into sectors like multi-brand retail, said commerce minister Kamal Nath on Friday, insisting that the new FDI norms are no way different from the existing rules.Which means COMPLETE DESTRUCTION of whatsoever Indigenous production system and the MARKET. Retail Market is going to be CAPTURED by Corporates, MNCs and India Incs! It is MONOPOLISTIC AGGRESSION against the PEOPLE of INDIA!KAMALNATH argued that at present most of the companies operating in the multi-brand retail are having investments from FIIs or raised money through ADRs and GDRs in the international market. However, according to the present FDI norms, foreign investment is not allowed in ventures like multi-brand retail, gambling and casino, among other things.

But, there is a catch in this. If the downstream company becomes, wholly- owned subsidiary of the JV company, then it will not be treated as a fully domestic entity. In that situation, the foreign holding in the downstream company will be treated as 49% or equal to the level of FDI in the parent company. To avoid this, a foreign entity will hold less than 50% in a JV with Indian company. So, by creating a series of downstream companies, the FDI component can reach 92% in the fourth level and still it will remain a fully Indian company as in the present norm this FDI will be treated as zero.

Nath said that the existing system of calculating FDI through pro-rata basis is faulty and defeats the purpose for which it was created. He argued that if a foreign company incorporated an Indian company with 51% equity, a further 51% downstream investment by this company could operate in all sensitive sectors including I&B and defense, where the maximum FDI permitted is 26%.

This is mainly because the net foreign holding in the downstream company is 25.56%. But, in this case, both the parent and the downstream company are effectively owned and controlled by the foreign company with 51% holdings in both of them.

Nath said that under the new guidelines, the ownership and control should remain with Indians, which is important and would help strengthen the corporate India.



Economic Times reports:

NEW DELHI: Every sector of the Indian economy has effectively been thrown open to foreign investment, thanks to the revised norms for computation
of foreign holding in an Indian company issued by the government on Friday. For example, organised multi-brand retail, hitherto forbidden territory for foreign investors, now stands prised open.

“This opens the way for front-door entry of foreign direct investment in organised retail,” Future group’s Kishore Biyani told ET in reply to a query whether the revised norms would allow backdoor entry of FDI into the sector. He welcomed the move, saying the sector was bleeding and needed investment.

Mr Biyani’s understanding of the FDI norms was endorsed by a senior official of the commerce ministry, who said: “According to the new guidelines, the government would count investments by an Indian-owned company into any company, whichever sector it may be operating in, as Indian equity.”

Any company will be deemed Indian-owned if foreigners have less than 50% beneficial ownership in the company and if foreign investors do not control it.

Take the hypothetical example of a company registered in India (an Indian company) called, say, Stalking Horse Pvt Ltd, in which a foreign investor holds a 49% stake and its Indian partner holds the balance 51%. Stalking Horse’s investment in any sector will be considered Indian investment, regardless of whether the sector is one in which foreign direct investment has been capped, like telecom, or banned outright, like multi-brand retail.

A press note prepared by the department of industrial policy and promotion (DIPP) makes one significant departure from the press release issued on Thursday. This change is to bring in the concept of ‘beneficial ownership’ while determining whether a company is owned by foreigners or not. As per the press note, “an Indian company may be taken as being owned by non-residents entities, if more than 50% of the equity interest in it is beneficially owned by non-residents”.

Now, the Companies Act does not define beneficial ownership. But it is commonly understood to mean cumulative ownership arising from direct and indirect holding in a company. If this understanding holds, the press note marks an improvement on Wednesday’s press release, which had done away with any concept of indirect foreign ownership through an investing company that is not majority-owned by foreigners.

However, points out a merchant banker, identifying beneficial interest would be next to impossible in widely held and listed companies, in which holdings by foreign institutional investors, as well as, by Indian-owned companies with minority foreign stakes, keep changing.

Nor do the guidelines address, said the merchant banker, the case of an Indian resident warehousing shares on behalf of a foreign investor. It is perfectly legal for a foreign entity to give 51% stake in, say, Stalking Horse Pvt Ltd, to an Indian resident willing to act on the foreigner’s behalf, for a consideration next to nothing, and for then Stalking Horse to invest in other companies, using the funds brought in by the foreign entity, as an Indian investor.

Commerce and industry minister Kamal Nath addressed the press on Friday and sought to explain that the revised norms bring transparency and uniformity to assessment of foreign investment, based on control and ownership. All forms of foreign investment - FDI, investment by FIIs, non-resident Indians, American Depository Receipts, Global Depository Receipts, Foreign Currency Convertible Bonds, and convertible preference shares - would be taken into account, he clarified.

Investments by any company, which has a majority foreign stake, will be considered entirely as FDI. The only exception will be when a joint venture company creates a wholly-owned subsidiary in India. In that situation, the foreign stake in the subsidiary company will be considered as equal to the stake in the holding company.

An Indian company, according to the press note, would be deemed controlled by non-resident, if foreign entities have the power to appoint majority directors on board.

However, if an Indian company intends to transfer ownership or control to a foreign company, it would have to seek foreign investment promotion board’s nod in restricted sectors such as telecom, defence production, air transport services, banking, broadcasting.

The government has also made it mandatory for companies to provide full details about beneficial ownership to the FIPB while seeking its approval.

According to the press note, companies would have to seek government approval in cases where shareholders have agreements affecting appointment of board of directors or voting rights, or creating voting rights disproportionate to shareholding. The approving authorities will consider these shareholder agreements before determining ownership and control.

In all sectors attracting sectoral caps, the balance equity, which is equity beyond the prescribed sectoral cap, would specifically be beneficially owned by resident Indians or Indian companies, the government document says.
In sectors like broadcasting and defence, where the sectoral cap is below 49%, the company would need to be owned and controlled by an Indian. Hence, the equity held by the largest Indian shareholder would have to be at least 51% of the total equity.

http://economictimes.indiatimes.com/Economy/Foreign_money_for_all_now/articleshow/4127241.cms

Foreign Capital
Foreign capital has a key role to play in the economic development of India. It is recognized that almost third share of the investment in India is by NRI. Indian government has been continuously proceeding for economic reforms and is quiet assure to secure legislation to allow more foreign investment in areas such as insurance. On top of it, the Government knows the key role of Foreign Direct Investment (FDI) in economic development not only as an addition to domestic capital but also as an important source of technology and global best practices.

Foreign direct investment (FDI) has always played a major role in the economic development of developing nations like India after playing the leading source of external financing in 1990s. India has now become the third most favored destination for Foreign Direct Investment (FDI), behind China and the USA.

With an increase of 18.6 per cent from U.S.$ 2,696 million in 1996-97 to U.S.$ 3,197 million in 1997- 98. With this FDI inflow in the country rose nearly three-fold to $15 billion in 2006-07 as the world's second-fastest growing economy attracting investors from across the world.

The rise in FDI volume has changed the composition of market resulting investment happening in the form of acquisition of existing assets (mergers and acquisitions) growing much more rapidly than investment in new assets particularly in countries undertaking extensive privatization of public enterprises.

According to the Global Development Finance report, the net private capital flows to developing countries reached a record $647 billion in 2006 – a 17 percent increase from the year before. However, only about 8 percent of that capital flowed to the poorest 51 countries showing India as the most important of the other growth markets in Asia. The country has achieved steady economic growth, with an increase of 7 per cent in 2005 alone after starting the gradual economic liberalization process in 1991. Now the country has a liberal and transparent FDI policy.

http://www.altiusdirectory.com/Business/foreign-capital.html


Trends in foreign capital inflows








Total foreign investments into India in 2007-08 stood at US $ 59288 million (about Rs 2.5 lakh crore), up by a whopping 162 per cent over the previous year. October 2007 witnessed the highest inflow - US $ 11591 million (Rs 48682 crore), CMIE data shows. July, September, December and January too witnessed heavy investments and these months brought in about 50 percent of the total inflows for 2007-08.


FDI REPLACES FII


Predictably, a major contributor to this whopping 162 per cent rise has been foreign portfolio investments (FII investments). A booming stock market for much of 2007 resulted in net FII investments surging to US $ 20328 million (Rs 85400 crore) in 2007-08.


But FII trends reversed in 2008 in the months of February and March, with adverse global cues, rising inflation and falling industrial production, cutting the growth story short. In these two months, FIIs were net sellers to the tune of US $ 10634 million (Rs 44660 crore).


Ironically, it was during these two months that FDI investments peaked. CMIE data shows that one third of the total FDI inflow happened towards the close of the year with February and March attracting about Rs 36000 crore.


Six of the preceding months also showed an inflow of over US $ 1000 million (Rs 4200 crore approx) leading to an overall rise in foreign direct investment by 165 per cent for 2007-08, to US $ 24745 million (Rs 1.04 lakh crore approx).


IMPACT ON THE RUPEE


Largely due to the bourgeoning foreign capital inflows, the rupee, during April 07 - January 08, appreciated against the dollar by anywhere between 11-15 per cent in comparison with the same period last year. The reduction in inflows in the last two months arrested the double-digit appreciation witnessed until then.


Slower capital inflows, dollar buying by the central bank, negative market sentiments and concerns about the economy seem to exert downward pressure on the rupee taking it back to Rs 42 a dollar level so far in 08-09.


PARVATHA VARDHINI C
http://www.thehindubusinessline.com/iw/2008/06/29/stories/2008062950440700.htm

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After the show, Bill O’Reilly had the Neocon Bernie Goldberg on to dissect the press conference and wax Zionistish on Obama’s performance. Both of them had a big laugh about Thomas as being too old and out of it; saying Thomas should have quit her job back in the days of Lincoln (the first one). And, of course, they ignored her very sharp and important question about nukes in the Mideast. Funny, huh?

Zionists, like this foul Rosenberg creep, have glommed onto all this Dispensationalism crap, not only to make shekels off books, but also to feed the Israel-supporting American putzes who hope that all the end time catastrophes will usher in Jesus, who will then put a stop to all the sleaze out of Hollywood (Zionists always work both sides to the equation).
But the religious Zionists believe it will be a Zionistish Messiah showing up to the really big show and who’s name could be anything, so far.

Ask yourself these questions: Why do they absolutely never mention the Zionist’s Talmud whenever the History Channel does a program on religion? Or discuss the Federal Reserve’s beginnings? Why do we never see the History Channel doing something on Israel secretly building the nuke? For that matter, why do we absolutely never hear one word about Israel’s nuclear capability on the mainstream news? Most Americans don’t even know that Israel has 200 to 400 nukes, ballistic missiles, US Stealth bombers and even German-made submarines.

A good example is the US media who talk about freedom of knowledge, freedom of information like CNN, ABC, 60 Minutes. In this case they are all silent and cooperate with Israel; they fear the Israel lobby and the Israeli authority here. My view is the US Media is totally under the Israeli control. Very sad, very bad that US Media is not free. The Zionist lobby in Washington decides what people in the US should know and hear about. Not just the West Bank is under occupation, but the US Media is under Israeli occupation too.”

Express your support to the Global Arms Trade Treaty in progress by endorsing this petition and urging India to take a lead in making it happen.


It’s all Zionists and how they view the issues. It’s their perspective and if you dare to see it any other way and have the temerity to speak openly, then out comes all the “Nazi” business. Not only with all us out here in sheep land, but also with the real White news people, too (or the rapidly increasing number of on-air Negro talking heads).


It’s all a sham folks. All of this is a set-up to keep YOU from seeing THEM. Why? Well, if you cannot talk about the almighty Zionists and what they do and want to do in the world, then that’s what it is. All a distraction to keep you from asking the real questions. Questions they don’t want you asking or even thinking.


And it’s not only TV, people. These Zionists are all over the media — top to bottom — writing stories and editorials in newspapers from the New York Times to your local rag. Magazines too: Newsweek, Time magazine and any of the political “organs” (weird Commie term). They might write about conservative or liberal topics, but pretty much every one of them protects Zionistry and toes the Israeli, Zionist line.


Dear Palash Biswas,
Greetings from Network for Social Accountability (NSA)!
The recent Open Budget Index -2008 Report of the International Budget Partnership (IBP) has placed India at 13th rank with an index value of 60 among 85 countries of the world. The first ever Open Budget Index was released by IBP in the year 2006. IBP institutionalized this process of collection of information on transparency, accountability and participation of the public finance system in different parts of the world through a strategy called “Open Budget Initiative” which is a ‘global research and advocacy program to promote public access to budget information and the adoption of accountable budget systems across countries’. The present OBI -2008 Report is the second formal report by IBP and such reports shall be brought into public domain biennially through the Open Budget Initiative of IBP.
Indian Budget System was studied through the Open Budget Initiative in both the reports and has made a modest improvement on measures of transparency, accountability and participation from a rank of 14 (rank 1 as best) in OBI-2006 to 13 in OBI -2008. It will be interesting to study such modest progress of India and the OBI survey process for the country in detail to assess the significance of such indexation for a country like India. NSA in its efforts to democratize the debate on development has prepared a policy brief reviewing the Indian case in the Open Budget Survey. Please click on the link below to read the policybrief. We hope this may be of interest to you.
India’s Progress on Transparency in Budget Making is Inadequate -A Review of Progress made by India in Last two Rounds of Open Budget Index (OBI) Survey by International Budget Partnership (IBP) -By Siba Sankar Mohanty
Since 2009 several policy briefs had been brought out by NSA. You may find them interesting for your activities. Please click below to access these policy briefs.
Best
NSA Team
www.nsa.org.in

Our Latest Policy Briefs (CLICK HERE)

India’s Progress on Transparency in Budget Making is Inadequate -A Review of Progress made by India in Last two Rounds of Open Budget Index (OBI) Survey by International Budget Partnership (IBP) -By Siba Sankar Mohanty
The Importance of Liberty & Democracy in India-By Justice Markandey Katju
Implementation of Mid Day Meal Scheme in India: Some Concerns- By NSA Team
TV Editors -Think hard and act before it is too late : Save institution of TV editor from public disgrace –By N K Singh
Satyam Scam: Addressing Systemic Issues -by Prasenjit Bose
How State Machinery Succeeded In Deflecting Public Anger from Political Class to TV Media -by N K Singh


Forms of Foreign Capital Flowing into India



There are many Forms of Foreign Capital Flowing into India such as banking and NRI deposits.

The various Forms of Foreign Capital Flowing into India has helped to bring in huge amounts of FDI into the country, which in its turn has given a major boost to the Indian economy.
Foreign Direct Investment in India:
The government of India made several changes in the economic policy of the country in the early 1990s.


This led to the deregulation and liberalization of the Indian economy and also increased the flow of foreign direct investment into the country. The total amount of foreign direct investment in India stood at US$ 42.3 billion in 2001, in 2002 this figure came to US$ 54.1 billion, in 2003 this figure stood at US$ 75.4 billion, and in 2004 this figure increased to US$ 113 billion. This shows that the total amount of foreign direct investment in India has increased at a very rapid pace over the last few years.
Various Forms of Foreign Capital Flowing into India:
The Forms of Foreign Capital Flowing into India include, NRI deposits, which are made in profitable foreign currency accounts. The total amount of Foreign Capital Flowing into India in the form of NRI deposits came to US$ 2.32 billion in 2000- 2001, in 2001- 2002 this figure stood at US$ 2.75 billion, and in 2002- 2003 this figure increased to US$ 2.98 billion.

Further the various Forms of Foreign Capital Flowing into India are portfolio flow of capital that are made by institutional foreign investors that make investments in India's debt and stock markets. The total amount of Foreign Capital Flowing into India in the form of investments being made by foreign investors in the country's stock markets came to US$ 2.8 billion in 2000- 2001, in 2001- 2002 this figure stood at US$ 2 billion, and in 2002- 2003 this figure came to US$ 979 million.

The Forms of Foreign Capital Flowing into India also include, investments that are being made by the foreign investors in the commercial banks of India. The total amount of Foreign Capital Flowing into India in the form of investments in the commercial banks by foreign investors came to US$ 2.63 billion in 2001- 2002 and the next year, this figure increased to US$ 5.15 billion.
Indian government must boost Foreign Direct Investment:
The government of India must make polices that will help bringing in huge amounts of foreign direct investment into the country, for this will lead to the growth of the Indian economy.



http://business.mapsofindia.com/fipb/forms-foreign-capital-flowing.html



This is a CLASSIC EXAMPLE of ZIONIST MEDIA working for The GLOBAL ZIONIST WARMONGER ILLUMINITI Realligned with HINDUTVA in India! Just see:

Click here if you want to go directly to the petition




Dear All,



Greetings !!

The recent and widely known Mumbai terror attacks, together with so many unnoticed misuse of modern arms has made it clear that there is a urgent need for a global treaty to regulate arms transfers to stop arms reaching to wrong and irresponsible hands. The easy availability of arms to terrorists and other armed non state actors shows the inefficiency of the existing regulations on arms transfer. Of late, the world is witnessing yet another threat posed by conventional weapons- the weapons of choice, which are now becoming the weapons of mass destruction.


The best way among many to decrease tragic violence from occurring in the future is to hit the root, by establishing a set of universal standards to guide the trade in arms. The global, regional and national scope of the arms trade means that existing regulations are not enough. The UN Charter, as well as international human rights and humanitarian law, already provide a number of important limitations on states' freedom to transfer weapons. However, some of these restrictions are only implied and their application to the trade in weapons is not altogether clear, therefore it is increasingly necessary to codify them in an explicit agreement that makes clear the international responsibilities of weapons transfers.


Drawing on existing international law, the Arms Trade Treaty (ATT) is a model for a legally binding international agreement establishing a set of basic rules to regulate the international transfer of conventional arms. It is based on the simple principle that arms exporters and importers have a responsibility to ensure that they do not provide weapons that would be used in serious violations of international law


India has played a historic role in Non-violence and universal disarmament in the past. However, much more needs to be done and we hope our government will definitely take the lead in the future. Let us push for this change.


In order to show your solidarity and urge our governments to respect and support the Arms Trade Treaty in progress, please sign up and endorse the petition to the Prime Minister and other in this web-link: http://www.petitiononline.com/signatt/petition.html


Please urge your friends and other like minded individuals to sign the petition "INDIA: LEAD THE WORLD FOR A GLOBAL ARMS TRADE TREATY (ATT)"


Thanking you in advance,



Sincerely,


Trilochan Pandey,


Control Arms Foundation of India,
www.cafi-online.org


For more information on Global Arms Trade Treaty, please follow the link below:
http://www.armstradetreaty.com/


This petition drive is in launched in the background of major conference " Warfare or Welfare? Disarmament for Peace, Human Security & Development in 21st Century India." A series of workshops, peace vigils, round table conference on a global arms trade which is out of control. It is organised by Control Arms Foundation of India, School of Law, Christ University & FEDINA, Bangalore in opposition and parallel to Aero India,09 where best of world's aviation and arms technology are displayed in Bangalore.


Dates: 10 to 12 February, 2009 Venues: Indian Social Institute, Mahatma Gandhi Square & Christ University, Bangalore.
For more information on the conference please click here.




_______________________________________________
Awareness mailing list is grateful to Shreyas, Ved, Anish, Devi and whole Free/Open source coummunity (Yo GNU/LINUX!!) for their tremendous technical support. Awareness thanks Harsha and Abhisek for providing real time petition support and related follow up services. We are also grateful to numerous contributors who make us more aware about the Indian world around us. Awareness provides only content delivery services.

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Restrictions on Capital Inflows

--------------------------------------------------------------------------------

There are concerns in official circles that too much short-term foreign capital is flowing into India and pushing up the Indian stock market. The traditional recipe that is proposed to be applied once again is to make the Indian stock market less accessible to foreigners. To better understand the situation, we need to ask: why is foreign capital rushing into India?

We must place the recent equity inflows in the context of the yuan revaluation. The 12 days prior to the Chinese announcement had average net daily equity flows into India of Rs.330 crore. The 12 days after the Chinese announcement have averaged Rs.536 crore.

India is not the only country that has witnessed bigger inflows of foreign capital. It is reported that in the past one month foreign investors have put in $6 billion in Asian's stock markets. $1.2 billion came in last week. Taiwan, South Korea, Thailand, Indonesia and the Phillipines, which report data on foreign trading witnessed a sharp increase in the inflow of foreign capital. Markets such as Hong Kong, Singapore and Malaysia, which do not report foreign trading data, are also said to be seeing big inflows.

The rationale of the foreign investors is as follows. Either, the domestic currency of these Asian countries, including India, will appreciate with the yuan, thus making it profitable for them to bring USD into India now and take money out with when there is a currency appreciation. Or, if the domestic currency does not appreciate, India's exports will become more competetive with respect to China, Indian companies will do well, therefore, stock prices will rise giving the foreign investors a profit. To the extent that this logic holds, equity purchases by foreign investors are a bit of a one-way bet.

The government may be looking for ways to make it more difficult for unregulated foreign entities to enter India in order to reduce their influence on the stock market. One of the ways this is likely to be done is to restrict Participatory Notes (PNs) in the Indian markets. PNs are derivative instruments whose underlying securities are Indian stocks. These are issued by FIIs to overseas investors who want to invest in Indian stocks but are not allowed to do so.

Earlier SEBI had warned FIIs that they must be ready to furnish information about their PN clients when the regulator requires. More of this may follow. There may be other restrictions as well. But is this kind of reversion to control raj the right answer? First, will it stop the inflows? And second, if it does not, will it lead to greater transparency in the market?

When the flow of foreign capital into India is caused by a global, rather than a local Indian phenomenon, can the solution lie in blocking a few channels? In the past in India, and in every country in the world, it has been seen that people will bring in money one way or another. India now has a gigantic current account: if all else fails, overinvoicing and underinvoicing can be used to move capital across the border on a gigantic scale. Blocking the legal and transparent route will increase evasion, illegal transactions, and reduce the capacity of the government and market regulator.

So, if it does not stop inflows, we need to ask the next question: are "increased restrictions on FIIs" the best way for better regulation and increased transparency?

If the entry conditions in Indian markets were made easier, instead of money coming through PNs, it would come through registered bodies. Every modern country in the world today has an open capital account. Vast pools of foreign money are in action in the New York Stock Exchange, or the London Stock Exchange, etc. But this foreign money does not flow through PNs in those countries, because the market is more easily accessible to foreign investors. This has neither weakened regulation nor led to market manipulation.

When we do not allow simple and clean options for those investing in India, investors find roundabout and non-transparent ways of entering the market. This poses risks for the market. The way to better regulation is to make the Indian market directly accessible. The government should make the PN route unattractive and unneccessary by removing restrictions on equity transactions in India. This will allow greater transparency.

We have learned something out of India's experience of trade account restrictions from the 1960s to the 1990s. We know that restrictions breed corruption and rents. Bureacracies like RBI and SEBI would delight in having a hundred rules that they can tinker with, just like those at the Ministry of Commerce and the Ministry of Finance used to in erstwhile years. Bureaucrats get better diwali gifts, when institutional investors have to pound their corridors requesting for permissions. We should learn from our mistakes in trade policy, and avoid trying to setup a complex system of controls.

The PN route has another fallout in terms of high rents earned by FIIs registered in Indian markets. SEBI and RBI rules have made entry for foreign entities, including NRIs, cumbersome and expensive. When investors come through those already registered in the markets they pay them. This means that those in the markets get extra business and earn rents. The fact that administrative controls create rents is not new. We have seen this in the licensing regime in India in industry and trade.

Licensing puts power in the few hands that have licenses. It gives them rents. It increases their market power. It is only when India abolished licensing and opened up entry in the market for that these rents came down. The situation in the market for investment of foreign capital is no different. When we allow entry only to a few, by making it difficult for other to invest, we make the incumbents more powerful. The way to increasing competition, increasing liquidity in the market and making it more difficult to manipulate markets is through making those markets accessible to all, not by restricting entry.

If the market is made more accessible, then instead of a handful of FII's making decisons to buy or sell, as appears to be the worry today, the decisions will be made by thousands of investors scattered all over the world. As the title of the book by Raghuram Rajan and Luigi Zingalis suggests, the government's job should be to "save capitalism from the capitalists", and remove the rents earned by a few privileged FIIs and bureaucrats.

The policy of making entry into Indian markets difficult favours incumbent FII. It creates new business opportunities for those already registered in the Indian market. It is in India's interest to have a level playing field between all investors in the world, and to not concentrate the financial capital of global investors into a handful of FIIs. Narrowing the ranks of FIIs strengthens them, while hurting smaller investors abroad. It reduces liquidity and makes regulation more difficult.


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http://openlib.org/home/ila/MEDIA/2005/stock_markets_and_yuan_revaluation.html

A perspective on foreign capital
VENKITESH RAMAKRISHNAN







EVER since the dismantling of the Soviet Union and the regime changes in the socialist bloc countries, the Communist Party of India (Marxist) has been trying to evolve policy and tactical approaches on the new, emerging world situation marked by globalisation and neoliberal economic policies. The effort had a special significance for the party, because it was participating in elections within what the party calls a bourgeois set-up, and had the responsibility of running State governments, including the West Bengal government which has completed a record 28 years in power.

The governments led by the party were confronted with several questions relating to the pursuit of neoliberal policies within the larger structure in which they were functioning. Hence, evolving the correct tactical approach was of paramount importance. This effort took a concrete shape at the 18th party congress with the release of the document "On Certain Policy Matters".

The document made it clear that "the struggle for an alternative socialist order has to be based on revolutionary transformation of the existing order" and that this requires "an engagement of the revolutionary forces with existing world realities with the sole objective of changing the co-relation of forces in favour of socialism". It also added that the "process of revolutionary transformation has to be based on such an engagement and not on the wishful thinking of escaping from existing realities". Political observers are of the view that the document constitutes a first ever acknowledgement by a third world communist party that globalisation cannot be wished away.

Elaborating further, the document adds: "[U]nder globalisation, the neoliberal policies reduce State governments to extreme penury, by reducing capital transfers to them and by charging usurious interest on loans." It also pointed out that imperialist agencies use this situation to make "offers of help" with strings such as structural adjustment attached to them. What the document visualises is not an outright rejection of these manoeuvres of neoliberal economic interests, but a tactical engagement with them.

With this premise, the document has also delineated its position on the flow of foreign capital into the country. It says that the flow of foreign capital (Foreign Direct Investment) must be regulated on the basis of three stipulations. First, FDI should augment the existing productive capacities in the economy. Secondly, it should upgrade the economy technologically, and thirdly, it should lead to employment generation. The document has also made a similar, qualitative analysis of the funds that flow into the social sector of the country through non-governmental organisations (NGOs) and self-help groups. (SHGs). On this too, the document does not advocate outright rejection of these funds and has asked party units to follow guidelines and take appropriate decisions after evaluating the situation.

At the level of immediate politics, the document imparts a sense of precision to the CPI(M)'s position vis-à-vis the UPA government's neoliberal initiatives and plans to attract foreign capital. And to that extent, there should be greater smoothness in the coordination between the United Progressive Alliance (UPA) and the CPI(M). However, immediate reactions show that even a well-laid out directive like this can be interpreted in different ways. One such interpretation is that it is tantamount to the CPI(M) revising its earlier stand and welcoming foreign investment in sectors like insurance, a viewpoint that party general secretary Prakash Karat strongly refutes.

According to Karat, the total import of the document would be clear only when the new Central Committee finalises it. However, there is little doubt that the document has imparted greater clarity to the ideological debate within the CPI(M) on how the party should balance its own larger objective of establishing socialism with its immediate concern of providing relief to the people by using the systems available in a bourgeois democracy.

http://www.hinduonnet.com/fline/fl2209/stories/20050506002101700.htm

Capital Inflows into India and Rupee Appreciation
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Delicious Digg Facebook reddit Technorati Arpitha Bykere | Dec 22, 2007
Burgeoning capital inflows into the booming Indian economy and Reserve Bank of India’s (RBI) policy to let the rupee appreciate intermittently, add to this the Fed rate cuts and USD weakness. The appreciation of rupee by around 15.5% against the dollar during Sep 2006-Oct 2007 has raised concerns recently, given that in the past few years the rupee has maintained a de-facto peg against the dollar. Capital inflows have reached close to $16 b during Jan-Nov 2007 and around $8.2 b came in between the Fed rate cut in September and when the Indian govt. imposed curbs on foreign investors in mid-October. Inflows have remained subdued thereafter due to government measures and volatility in global financial markets.

The RBI and government have been active in using various tools to manage inflows and their corresponding impact on liquidity and inflation due FX intervention and sterilization. Banks’ reserve requirement has been raised eight times from 5% in December 2006 to 7.5% in October 2007. The repo rate been raised seven times from 6% in April 2005 to 7.75% in March 2007 while the reverse repo rate has been increased five times from 4.75% in March 2004 to 6% in July 2006. Increase in reserve requirement is acting as a tax on banks (especially when rising consumerism and attractive returns elsewhere challenges them in attracting savings and RBI rules force them to hold a quarter of their deposits in govt bonds and purchase the low return sterilization bonds) while higher lending rates have said to be reducing industrial production and demand for consumer durables, raising concerns that RBI’s inconsistent monetary policy is weighing down on growth.

RBI’s control over the three pillars of impossible trinity has been weakening. Initially RBI followed an independent monetary policy of targeting the interest rate while maintaining a competitive exchange rate with partial capital controls. But as the economy witnessed strong growth of over 8.5% in the last few years attracting large capital inflows, the rupee had to be allowed to appreciate to keep control over the interest rate. But as the rupee approached the alarming 40/$ level in 2007, RBI shifted its control over the capital account, imposing soft controls on inflows and easing outflows. Moreover, the use of interest rate either ways, up or down, is constrained by concerns of slowing growth and inflationary pressure (including food, manufacturing, asset inflation) respectively.

See Graphs

Various sources of inflows have witnessed significant growth in the last few years with net foreign inflows growing from $6.8 b in FY 2000 and $15.4 b in FY 2004 to $26.5 b in FY 2006 (Note: FY for India is from April to March). One such component has been the External Commercial Borrowings (ECB) by domestic firms which has risen from around $2.8 b in FY 2000 and $11.5 during FY 2004 to $26 b in FY 2006. Strong economic growth, corporate performance, cheaper borrowing terms overseas (due to appreciating rupee and higher domestic interest rate) have been driving these external borrowings even as the cap on these borrowings have been revised up overtime. To clamp down on such borrowing, in May, RBI prohibited the use of ECB to build integrated townships and lowered the cap for such loans with maturities of 3-5 years. Later in August, it laid restrictions on how much of these borrowings could be brought into the country. Also, the issuance of overseas American Depository Receipt and Global Depository Receipt by Indian firms has increased from $0.6 b in FY2004 to $3.8 b in FY2006.

Another important source of capital inflows has been Portfolio Investment which rose from $2.8 b in FY2000 and $12.5 b in FY2005 to $18.5 b Apr-Sep 2007. Foreign Institutional Investment (FII) has risen from $1.8 b in FY2000 to $8.7 b in FY2004 and to $15.5 b during Apr-Sep 2007. Moreover, the number of FIIs registered in India has doubled to 1,050 between Mar 2001-Jun 2007, and now around 3,336 FII sub-accounts also exist. FII equity inflows have increased from $9.8 b in 2004, $11 b in 2005 to over $16 b in 2007. The stock market buoyed by strong corporate performance and these inflows has risen 43% in 2007. According to Citigroup, FIIs holdings in the Bombay Stock Exchange 500 companies rose from 12% in March 2001 to around 22% in June 2007, which is greater than the holdings of domestic mutual funds. The stock market turns volatile based on the volatility and economic outlook of the U.S. economy (as observed in February, August and November 2007).

However, in mid-October, RBI banned foreign investment in the stock market via off-shore derivatives called Participatory Notes (PN). These derivatives were used by foreign investors not registered in India (say hedge funds) to indirectly invest through registered investors. Between Mar 2004-Aug 2007, the number of FIIs/Sub Accounts that issued PNs rose from 14 to 34. The share of PNs in total foreign portfolio flows is believed to have increased from 32% during 2006 to about 55% by Oct 2007, with hedge funds accounting for around 50% of the PNs. But many believe that the motive behind such the RBI measure was to improve transparency of capital inflows (though it temporarily cooled down the stock market and equity inflows) and that restricting inflows via PNs would have little or no impact on the overall inflows coming into the country.

The interest of hedge funds, mutual funds and pension funds in the Indian economy has been growing. According to a hedge-fund based research firm, hedge fund investment in India has risen 400% from $2.8 b in Sep 2005 to $13.97 b as of July 2007 with over 90% of these investments in equities accruing high returns. According to the Financial Times, private equity deals have surged from $3.9 b in 2006 to around $ 5.9 b ytd in 2007.

FDI has also risen significantly from the dismal levels of $3.8b in FY2004 to $16 b in FY2006. In addition, cross border M&A deals increased to 226 deals worth $15.3 b in 2006 compared from 192 deals worth $9.5 b in 2005. More importantly, investment by non-resident Indians in foreign currency deposits and rupee accounts has risen over the years from $21.7 b in FY2000, $33 b in FY2004 to $41.2 b in FY2006, leading the RBI to cap interest rates on the latter. Moreover, remittances have increased from $12.9 b in FY2000 to $20.5 b in FY 2004 and $27.2 b in FY 2006.

The scaling capital inflows are reflected in the massive FX build-up and the purchase of US Dollar by RBI particularly in the months of February, July, September and October in 2007.

External debt rose 22.6% to $155 b in FY 2006 (with the appreciating rupee contributing to 10% of this increase) accounting for 16.4% of GDP. Around 56% of the increase in external debt was due to ECBs and 16% of the increase was due to NRI deposits. Net International Investment Position has improved somewhat in the recent years due to increase in assets (rising outward FDI), even as liabilities have continued to grow. Rising FDI and equity portfolio inflows have helped non-debt creating inflows to rise from 27% in FY2000 to 47% in FY2006, but FDI inflows are only up from 14.7% in FY2000 to 25% in FY2006.

In order to ease capital outflows, starting in August, RBI raised the ceiling on overseas investment by Indian companies, mutual funds and residents. However, higher domestic yields may have rendered this effort less effective.

Moreover, the cap on sterilization bonds (paying 6.65% interest) has been raised from Rupees 700 b in 2006-07 to Rupees 800 b in 2007-08 and later revised to Rupees 1500 b in Aug 2007, Rupees 2000 b in Oct 2007 and Rupees 2500 b in Nov 2007. The interest payment on these bonds has to be borne by the Central Government. In July 2007, RBI also removed the cap on the amount of liquidity it can absorb from the banking system. However, due to incomplete sterilization, pressure on inflation, money and credit growth continue even without much success in curbing currency appreciation. Moreover, sterilization will further raise fiscal burden and interest rate (though it will help containing domestic lending and asset bubbles) and attract more inflows creating a vicious cycle. Inflationary pressure will also induce further currency appreciation. Hence, the current monetary policy is unsustainable and entails a high cost and ultimately RBI may have to give up control over the rupee or impose greater capital controls.

Rupee appreciation during Sep 2006-Oct 2007 has been much greater versus the U.S. dollar (15.5%) compared to the appreciation against Euro (4.8%) and Pound (8.2%). In terms of Real Effective Exchange Rate (REER), the rupee has appreciated 10% between Sep 2006-Sep 2007 vis-à-vis 36-countries and 9.7% vis-à-vis 6 countries, according to the RBI data. The BIS data shows a 9.4% appreciation in REER terms. U.S. still remains a major export market including for service exports and dollar still holds significance in the composition of external debt as well as forex reserves. Nevertheless, it can be seen that a larger share of exports are now directed towards EU and Asia. Share of exports going to the U.S has been falling while exports to EU have been growing steadily and exports to Asia and its share in total exports have been witnessing a strong growth. On the other hand, imports from U.S. have remained steady while imports and the share in total imports from Asian countries have been growing strongly and falling from EU. Moreover, overtime the composition of India’s exports has been moving away from agriculture and low-skill labor-intensive manufacturing products to value-added manufacturing goods and services. Service exports which now account for over half of India’s exports have been growing over 30% in the past few years. Further, banking and financial services account for around 60% of the total service exports and these along with high-tech and manufacturing-based service exports have been growing at a high rate. The share of service exports going to U.S. remains high (around two-third of the total) and growing at a high rate though exports are slowly being diversified towards EU (around one-fourth of the total) and have been growing strongly in the recent years. Looking at the currency composition of the external debt, dollar constitutes the largest share and dollar debt and its share has shown an increase. On the other hand, rupee debt has risen only slowly and rupee share has shown a slow fall. Euro and Pound debt have risen but their shares in total debt have shown a decline. Furthermore, the dollar share in foreign exchange reserves seems to have decreased while that of Pound and Euro may have increased recently.

Many argue that it is not the currency appreciation but rather the pace of appreciation in a short span of time that is hurting exporters who were unprepared to hedge against currency risk and gear up to improve export competitiveness. Export competitiveness vis-à-vis Asian nations is also affected. Big firms may manage to cope with the squeeze in profit margins due to rupee appreciation by raising price, scale of operation, improving productivity and quality of products, developing new business models, moving up the technology ladder and hedging against currency risk. However, small and medium sized firms including low-skill, labor-intensive industries like textile, leather, chemicals, gems and jewelry, handicrafts, etc may not be prepared to deal with over-valued currency and its impact on profit margins in the short-run. Large numbers of job losses are being reported in the textile sector and the figures are expected to grow in the coming months. Service exports are also affected by a rising rupee. IT companies derive more than 70% of their export revenues from U.S. Outsourcing firms’ profits are also hit since their cost is in rupees but revenues in dollars. Thus, the impact on profitability and employment of exporters prompted India to stall the currency appreciation and offer fiscal incentives in the form of lower import duties, interest rate subsidy and tax incentives to cope with export losses (which may be in turn be distortionary and cause inefficient resource allocation). Due to rupee appreciation, the price received on exports in rupee terms would fall and overtime export volume may shrink if productivity or value-addition of the exports is not increased. Given cheaper imports owing to industrial activity and oil dependence, trade deficit may rise and so would the current account deficit. Recipients of remittances are also affected unless hedged against exchange rate risks. Net international investment position may also deteriorate. Terms on foreign currency denominated debt would improve. Overseas acquisition would become cheaper for Indian firms and outward FDI and FII may rise but returns on outward investments and debt securities may fall if rupee keeps appreciating. On the other hand, returns on inward FDI, FII, stocks and bonds would increase.

The export-led growth strategy has been adopted by several Asian countries since an undervalued currency can raise exports, employment leading to high economic growth. But as seen, amid capital inflows, this policy has harmed the independence of Central Banks and has levied huge costs in terms of fiscal burden of sterilization, valuation losses and opportunity cost of holding forex reserves, and macroeconomic imbalances. The key challenge is how to maintain a competitive exchange rate to promote exports while attracting capital inflows as well as using higher currency to control inflation but avoiding costs to the monetary policy. Many economists are struck to the classic argument that India still needs to maintain an undervalued currency to promote an export-led growth (according to Rodrik, undervalued currency is the second-best strategy for developing countries to promote exports and economic growth since first best strategies are constrained by market failures and underdeveloped institutions; some also say that such a policy will help reduce exchange rate volatility, promote investment and attract long-term capital inflows into the country). Competitive exports may help reduce rural poverty and unemployment, absorb excess labor away from agriculture to the organized manufacturing sector, develop a manufacturing base and promote employment. It may be too early to judge the impact of rupee appreciation on exports and industrial growth based on the current data. Depending on how fast/slowly domestic producers adjust to the rising rupee (by improving productivity, diversifying to new markets, moving to value-added manufacturing and service exports, efficiently reallocating resources) and foreign consumers and service export clients react to the high rupee value. Overtime, labor anyways will have to move towards more skill and value based goods and service sectors and job loss is one of the pains of globalization. However, institutional weaknesses in the economy like red tape, lack of access to credit, efficient hedging markets and labor training institutions may delay this process. Nevertheless, some firms have already started raising operational efficiency, keeping a part of their dollar deposits abroad, increasing prices and engaging in currency hedging.

Many economists argue that there may be little or no correlation between rupee appreciation and its impact on exports and that in spite of appreciation over the years, exports have been rising (though this time around the pace of appreciation was quicker). Also, due to high inflation, real interest rates are still low and therefore may not be responsible for slowing growth and industrial activity. The strong rupee may help in lowering inflation (especially food and commodity imports under the inflationary effects of globalization). In fact, many argue that capacity constraints and low rupee, and not money supply have been feeding inflation and therefore raising interest rate may actually hurt growth. Higher rupee will lead to cheaper import of raw materials and capital goods, help raise investment, lower the cost of production especially for exportable goods and therefore offset the initial impact of rupee appreciation. Consumers would benefit with cheaper oil and consumer good imports, lower inflation and interest rates. Many also argue that cheaper imports and expensive exports will lead to reallocation of resources from the tradable to non-tradable sectors, help the non-tradable sectors develop and raise its output and employment. So as long as the current account deficit is manageable, it can be covered by capital inflows (by promoting more FDI and remittances).

However, both inflation (via FX intervention) and rupee appreciation are politically difficult for India. And both sterilization and export subsidies have fiscal costs, though much lower in the latter case but high fiscal burden along with trade deficit may actually deter future country ratings upgrade and foreign investment. The soft capital controls imposed so far have been ineffective in reducing capital inflows, inflationary pressure and rupee appreciation. Hence, India will have to slowly loosen control over one of the pillars of impossible trinity as the monetary tools become scarce, ineffective and expensive. It has to decide on how to deal with capital inflows, especially debt-creating hot inflows (given that some research doubts the net benefits of capital flowing into developing countries in the absence of complementary factors like well-developed financial system, macroeconomic policy framework and institutions) though the country needs foreign capital to finance capital scarce sectors, the saving-investment gap and current account deficit. Many economists say that India’s capital account is indeed de-facto open since govt restrictions have created incentives to borrow overseas and also invest in India via indirect routes. Some suggest taxing short-term inflows equivalent to the appreciation gains or else make it mandatory for foreign investors to deposit a fraction of their investment in an interest-free account. However, any kind of soft/harsh capital control may not deter inflows in the long-run while having short-term implications on investor sentiment and stock market. Likewise, India has also laid out a plan to move towards capital account convertibility in a few years. Given its implications on financial sector stability and currency, this will require improvement in transparency and governance of inflows, development of skills and instruments to manage risk, continued banking reforms, creation of deep and liquid capital markets, efficient markets for hedging and currency futures and policies to the reduce transaction cost of investment.

It also has to decide if it wants to follow an export-led growth given the large size of its domestic market and the cost of maintaining a low currency value. Some suggest a more transparent monetary policy where the RBI can set a time frame for the appreciation of rupee to help domestic players but foreign speculators may take advantage of this to make short-term gains. Capital inflows and appreciation pressure on the rupee would continue in the long-run due to strong economic fundamentals, future growth prospects, rising investment, labor, capital and total factor productivity and wages of skilled labor. Also, speculation about the tendency for the rupee to appreciate and RBI’s policy constraints would attract more inflows. The RBI can target the nominal exchange rate but price differential (and inflationary pressure in India) will determine the real exchange rate. Hence, the long-term tendency of the rupee may be to appreciate - Lehman predicts the rupee to appreciate from the current Rs 39.4/$ to Rs 36/$ by 2008-end; Bloomberg Survey says Rs 39/$ by 2008-end; DBS bank goes further: Rs 39/$ by early-2008, Rs 38/$ by mid-2008 and Rs 37/$ by 2008-end; Morgan Stanley says Rs 36-37/$ by 2008-end. However, the pace at which the currency appreciates and the RBI lets it appreciate depends on the current global financial market environment, possibility of oil shock, policy initiation to control capital inflows/outflows, slowdown in global or Indian economic growth that would lower investor sentiment, inflation and money growth.



On the other hand, cutting interest rate may help reduce capital inflows by foreigners as well as ECBs by domestic firms and prevent the vicious circle created by FX intervention but concerns of it fueling asset bubbles, liquidity may have to be met by greater govt and RBI regulation and supervision of credit growth and sectors vulnerable to asset bubbles. In the short-term, India will have to manage demand since the country’s absorptive capacity is still small relative to the inflows coming in and supply-side and structural bottlenecks can be improved only in medium to long run. The challenge is also about how to efficiently allocate and use the foreign capital coming in to overcome structural and development problems (India ranks very low on some of the social indicators), for instance to improve infrastructure. Other reforms will also be required to raise the productive capacity of the economy such as greater labor market flexibility, competitiveness of small and medium enterprises, improvement of labor skills, liberalized FDI entry, financial sector reforms, access to credit and investment opportunities, improvement in governance and transparency, and lesser red tape. There is also a need to reduce fiscal pressures to increase investment, ease interest rate and inflation, and raise productive govt spending. These reforms would also in turn help improve export competitiveness overtime (especially in agriculture which suffers from weak supply-chain, and manufacturing which requires skilled labor and infrastructure facilities). It may also help in attracting more FDI including import-sourcing and export-oriented FDI. However, overcoming some of these obstacles to promote exports may themselves require the need to attract more capital inflows like in infrastructure sector. Moreover, the irony might be that protectionist stance and market rigidities that call for control over the exchange rate, short-term inflows and also labor market protection may be the same reason why long-term capital doesn’t flow into the country.


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Hi Arpitha, Very interesting and useful post. I have been doing something similar, if somewhat more modest, over at the Indian Economy Blog. It is the pace of what is happening that is staggering. This is the real "recoupling" story of the year, and if you look at the rate of inflows, it really, really takes off after Aug 9th, the day Paribas stopped honouring committments on three of its subsidiaries.So the connection is very clear I would argue. All of this obviously has Brad Setser busy scratching his head: "Private investors want to finance deficits in countries that don't want to run deficits. The countries now accumulating reserves the fastest have the least need for reserves. The country with the largest deficit is struggling to attract enough private inflows to match the increased desire of its private sector to buy foreign assets – let alone both the deficit and those outflows. And the country with the strongest traditional aversion to state-ownership is now the country most-reliant on government inflows." My co-blogger Claus Vistesen made this point in an e-mail to me about it all: "The thing is, you need both sides of the coin here. You need to whole re-coupling thesis knocking around out there but you also need the old de-coupling argument as a counterbalance in order to understand why this may very well be a messy ride. Then of course, you need the whole Latvia as a canary in the coalmine argument and once you extrapolate to China, Russia, and the rest of the CEE then you will end up with one royal mess and then you will see that while some countries are now just getting their wings readying themselves to fly others are thundering to the ground like that poor lad Icarus who thought he had wings of steel while they were really made of wax. I mean Edward, the whole emerging markets v developed world argument is just SO ready for the bin at this point." I think this is the point, since the 9th August the whole meta-discourse about emerging markets and the developed economies just went off to the bin, you know, the one history consigns things to. So a few points on the post: "Nevertheless, it can be seen that a larger share of exports are now directed towards EU and Asia." Well this is just it. It is hard to envisage a serious and sustained revival in the dollar, but it is impossible to think that the euro can hold these sort of levels against the rupee, yuan, real, Turkish lira etc for that long. Especially Eastern Europe (which isn't in the euro, but is being carried along for the ride, like Argentina with the dollar in 1998-2000) is feeling the pain, but Italy and France aren't that far behind, and Spain, now that the construction thing is well and truly done, needs to export!!! (Plenty of opportunities in Lat Am, but relative currency values do matter, especially if you are going to be competing with a low dollar US). "Many argue that it is not the currency appreciation but rather the pace of appreciation in a short span of time" Yes. Exactly! It is not only in Europe we need to think about the problems caused by "violent" currency movements, and not only due to the unhedged exporters short-term risk, but becuase a large and substrantial distortion in relative prices (as we have just seen in the US over the last few years) can cause structural damage in the whole development process. Really I am becoming more and more convinced that there is a growing disconnect between microeconomic and macroeconomic discourses at this point. Many phenomenon which from a micro viewpoint may appear undesireable (oil or food price controls eg) may look rather different when you take into accoun the entire problem set. We have on our hands imbalances which have built up over 50 or more years (some got rich while other got rather a lot of people) which could now easily unwind over a 5 to 10 year window. There is a certain inevitability about all this now, so you can't fight it (or drain an Ocean with a teaspoon), but if you have to rise the tiger (or the elephant) then you at least need a stick or some equivaent instrument. "Capital inflows and appreciation pressure on the rupee would continue in the long-run due to strong economic fundamentals, future growth prospects, rising investment, labor, capital and total factor productivity and wages of skilled labor." Exactly. This has all now become blindingly obvious. So this is non-linear, win-win, and on and on you go stuff. The only question is when we will get the mindset round to Bretton Woods III, and when the central Banks will start paying head to Brad Setsers warnings about the capital value of their reserves and move on from stocking up on euros (last years story) to buying in to the rupee. If its capital appreciation the cbs want, then there could be no better bet than the rupee (except the Real perhaps). Time for a big change here I think. I never expected this all to happen so soon, but now it has happened, well, let's not fight reality. "But as seen, amid capital inflows, this policy has harmed the independence of Central Banks" Well, I would say that central bank independence in this sense is now "old hat". Perhaps the only country left in the world where you can run a "local only" monetary policy is Japan, and this, of course, is because they are at the bottom of the pile in interest rate terms. The really awe inspiring thing at the moment is the thought of the Chinese Central Bank on its way up, just at the time the Fed is on its way down. The carry trade which this could produce would have to be the mother of them all.

Reply to this comment By Edward Hugh on 2007-12-23 03:51:45 Nice one...few issues - "Also, due to high inflation, real interest rates are still low and therefore may not be responsible for slowing growth and industrial activity." This is incorrect - helped various monetary tightening measures inflation has come down to around 3% levels from a peak of about 6.5% at the start of the year. (Keeping in mind that full pass through of global oil prices hasn't taken place) "Higher rupee will lead to cheaper import of raw materials and capital goods, help raise investment, lower the cost of production especially for exportable goods and therefore offset the initial impact of rupee appreciation. Consumers would benefit with cheaper oil and consumer good imports, lower inflation and interest rates." Given that domestic fuel prices are already being pegged lower by the government, a higher rupee might not benefit consumers, rather the government's balance sheet. (Currently oil and fertilizer bonds are off-balance sheet items) There are two ways to look at interest rates - RBI hasn't touched its benchmark rate, but has been hiking only repo/reverse repo rates. On the other hand, its sterilization efforts have pumped in liquidity pulling down market-yields, hence the recent CRR and MSS limit hikes are seen as liquidity management measures (and not rate signals). The Indian central bank continues to faced with a difficult scenario - prevent overheating, manage liquidity flows and also ensure the growth momentum is not derailed.

Reply to this comment By phaedrus on 2007-12-24 02:10:59 Phaedrus, I agree that RBI's recent monetary measures aim at liquidity management and RBI is constrained to move interest rate either up or down. In the past, inadequate sterilization had put downward pressure on short-term interest rates. But raising CRR may actually put upward pressure on banks' lending rate (though this effect may have been alleviated recently on easing credit growth and money supply). While Wholesale Price Index (WPI) has been falling (especially compared to the high levels witnessed at the beginning of 2007), Consumer Price Index (CPI) is still high. CPI and core inflation have been easing only recently. It is interesting to see if WPI has fallen due to rupee appreciation. Also, interesting to see will be how much of the easing of CPI and core inflation is due to the lag effect of past monetary tightening and how much of it is due to, if any, easing supply bottlenecks. It is believed that inflationary pressures still persist in the economy, not only due to capital inflows but also due to prices of food and several primary products, asset prices, including real estate prices (and now the govt is also considering raising fuel prices). Consumers may benefit from rupee appreciation (via lower prices of imported consumer goods and eventually through intermediate goods) and also from lower interest rates (as large FX intervention and money growth are avoided). Above all, there is a debate on whether the present WPI and CPI adequately reflect the price pressures based on the goods included in the baskets as well as the relative weights assigned to the baskets.

Reply to this comment By arpitha bykere on 2007-12-25 09:53:24 WPI (and to a lesser extent, CPI) has declined due to a simple reason.... petrol prices haven't risen at all in the last 2 years or so. WTI is flirting with $90-$100/brl prices, but India's energy component of prices has been showing... get this... negative inflation! All the supply side mumbo jumbo will take more time to play out and even then its pretty complex. A huge portion of the jump in fixed investment is due to residential and commercial construction (whihc places its own demands on inflastructure) and installed power capacity (on nat'l grid) is barely growing!So captive units will have to do, but these operate on diesel, lack scale, and diesel prices, unlike kerosene and petrol, have shot up. Just wait till Tata's Rs. 1 lakh car comes out. Then watch the fiscal hole from petrol subsidies.

Reply to this comment By riskvos on 2007-12-26 23:16:49 CRR hikes haven't put pressure on lending rates as deposit growth has outpaced credit growth - over 27% vis a vis loan growth of around 23.5%. Leading Indian companies have been taking advantage of the rate differentials through overseas borrowings, which is reflected in the surge in ECB flows in recent years. Yes, the debate continues on whether both WPI/CPI reflect the true inflation, given their current composition and the base year. But we need to use the numbers that are available currently to us and on that account headline inflation has tempered. WPI is followed by most people given the intrinsic issues with CPI - four different indices, bias towards food items and the lag of publishing. Fall in WPI can also be attributed to the high base effect. Inflationary pressure is expected in a fast growing economy like India, but one would presume RBI's preemptive efforts have helped in moderating rapid credit growth, inflation and also real estate prices (increased risk weightage for realty loans for banks and rise in mortgage rates reducing affordability). The government is proposing to introduce a producer price index from next year that will cover more items and will have 2004-05 as the base year. Capital inflows are pushing up money supply due to the consequent sterlisation efforts and there doesnt seem to be enough data to link that to inflation.. The government estimates $500 billion of infrastructure spending in the next 5 years - this obviously has huge implications for the economy and the related sectors. One of the reasons for the astronomical valuations of some infrastructure companies. Over the long term, capital flows should continue into India - investors would like to be markets providing opportunities and better growth prospects. This is reflected in the fact that an 'India strategy' has become a must for most global firms and investors. Net FDI numbers reflect Corporate India's growing global ambitions and the various acquisitions being announced.

Reply to this comment By phaedrus on 2007-12-27 08:47:40
http://www.rgemonitor.com/economonitor-monitor/233966/capital_inflows_into_india_and_rupee_appreciation


**Please forward to friends, co-workers and on social networking sites!*

A New Movement: Indict Bush Now!
Hold Bush and His Joint Co-Conspirators Criminally Accountable!

Dear Mohammad,

You can join the movement to indict Bush Administration officials who committed war crimes, "legalized" torture, and engaged in massive illegal spying and wiretapping against the American people. Click this link if you support the indictment of George W. Bush and other high officials.

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Private equity firms exiting realty market

14 Feb 2009, 0945 hrs IST, Ravi Teja Sharma, TNN

NEW DELHI: Private equity (PE) firms are learnt to be pulling out of real estate deals citing condition precedents (CPs), which are part of the Home loan rates may drop shortly |
Realty: Good news on its way
Real estate: Good hedge
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deal document. CPs are conditions which are required to be satisfied after signing of a deal, without which the deal cannot close. Conditions include getting permission in a specified time period, timeline guarantees.

An overseas PE firm based in Mumbai is trying to get out of a deal it had signed with a Delhibased real estate developer in the third quarter of 2008. It is invoking the ‘no material adverse change’ clause which is part of the CPs in the contract.

“PE firms are looking at various exit options to get out of partly completed deals. In transactions where the promoters have agreed that they will cause the company to effect a buyback , funds are assessing the exercise of such a provision,” said Akil Hirani, managing partner at law firm Majmudar & Co.

The last six months has seen a slow down in the real estate market and with valuations dropping, many private equity firms are trying to find ways and means to get out. In some cases, valuations have dropped to almost 50% of the original valuation at which the deal was decided.

“The only way to get out for a PE firm is if either there is a breach of contract or CPs have not been fulfilled. Citing material adverse change is the most common in this scenario,” said a senior lawyer at a Delhibased law firm, who did not wish to be quoted. The law firm is working on a few such cases where PEs are trying to pull out.


Also Read
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? Real estate companies turn to private lenders


Many entities are citing material adverse change as a reason to get out of deals, but whether an economic recession can be classified as a material adverse change is debatable. “Such cases are new for Indian courts, and this may be a case of first instance for the courts,” says Hirani.

But on the positive side, where relationships are important, PE and the real estate company, are sitting down to reconsider the deal. “Where PE commitments have happened or deal closures are in the last leg, investors and investees are not being averse to taking a relook at the project plans to assess whether project size or mix needs to be pruned or phased out to protect their IRRs. Original project plans might not be completely viable in the current environment,” says Rajiv Sahni, partner, real estate practice at Ernst & Young.

If the excuse that the PE is making is not justified, experts say, the real estate company can take them to court or take them for arbitration, as provided in the contract. “Considering that most private equity contracts provide for offshore arbitration , these issues will, first, end up being arbitrated upon outside India, and will come to Indian courts in the form of proceedings to enforce arbitral awards,” explains Hirani.
http://economictimes.indiatimes.com/Private_equity_firms_exiting_realty_market/articleshow/4127993.cms

Americans Refuse to Accept Reality
By Timothy V. Gatto
Jan 15, 2009, 12:54

15-20 % correction needed in realty prices, says Kochhar
The country’s largest private sector bank, ICICI Bank, will have a new MD & CEO in the corner office by May. Chanda Kochhar steps into a rather formidable pair of shoes left behind by her predecessor K V Kamath.

But, she has been with the bank for over 25 years now and was part of the hand-picked team that was instrumental in re-formatting the bank’s genetic structure and imbuing it with a strong sense of competitive spirit.

In an exclusive chat with TOI, Chanda Kochhar spoke about some of the challenges ahead and even provided a prescription for riding out the economic slowdown.

There have been two stimulus packages, CRR cuts, SLR cuts, repo and reverse repo rate cuts, and a host of other measures. But they don’t seem to have helped matters much.

There are two issues here. One, all these steps have definitely helped prevent destabilization. If these steps had not been taken , the liquidity in the rupee market would have tightened substantially. We were relying a lot on global inflow of funds which have now dried up. Second, these measures have resulted in substantial rate cuts, but I think their effect will be felt with a lag. In every system, every environment , the last to move is usually the lending rate.

First what moves is inflation . Once that’s under control , corrective policy measures are then taken. Then comes a correction in market benchmark rates, like government securities. Next, you look at market rates, which are related to the real world, like corporate bonds.

Then comes the correction in deposit rates and correction in lending rates. We have seen the correction in inflation, we have seen corrective policy measures, we have seen correction in government bond and corporate bond rates, we have also seen the correction in the wholesale deposit rates. There has been some correction in retail deposits too. I think we next need to see some more correction in retail deposit rates and finally the lending rates. I think the trend has started and I don’t think we can buck the trend now. It’s only a matter of time.

Do you think cutting rates alone is enough to trigger consumption-led growth?

Rates alone can’t do it. But I think it’s important, because it does impact affordability. But, what’s needed additionally is a correction in real estate prices. People must have the confidence that inflation has indeed corrected. Once your rate of inflation, real estate prices and interest rates are under control, I think the consumption cycle will start. But, for the investment cycle to start once again, we have to wait; companies have to finish going through their inventory adjustment.

Have they started building up fresh inventories from low material costs?

They have started, but that part of the inventory is still smaller compared to the old inventory. The old inventory has seen a dip in selling prices, but is based on the old raw material costs. Once that gets out fully, two things will happen. One, the capacity utilizations will improve from the current levels. They will never go back to the past 100% levels. But, they will come to 70-75 % levels from the current 30-40-50 % levels, because currently you are waiting for the inventory to wind down. So you will move to a more stable level of capacity utilizations .

Second, they will move to a different cost structure. Their selling prices will be low, but raw material prices will also be low. And, they will have to improve their internal efficiencies enormously to force their cost struct u re s down. Corporates will have to settle at a different economic paradigm so that there is more stable capacity utilization, and more maintainable margins.

But, the real estate sector seems to be still in the denial mode, unwilling to bring the prices down...

For them it is not really the cost. They were operating on huge margins. So, real estate prices have to correct. Though, some correction has actually happened, some price adjustments have happened . But it’s not enough. It’s not enough to re-start demand , to bring back that confidence in the minds of the individuals. And, it is also still not enough to really impact the affordability in a positive manner. Some more correction has to take place. But, in other sectors, companies have started work on costs, on efficiencies and on productivities .

What kind of correction is needed in real estate prices?

Maybe 15-20 %, or maybe more. Piecemeal corrections have already happened. But some more correction might be needed because pricing depends on location to location.
http://economictimes.indiatimes.com/15-20_correction_needed_in_realty_prices/articleshow/4128421.cms


Sometimes I feel as if I've been writing about the mistakes our country is making for most of my life. It has only been a little over six years; still I end up writing about the same issues. Usually I write about how we are either killing people overseas, or helping other countries to kill people. Every time I write an article I believe that maybe it will do some good. The truth is that while one or two people understand what I'm trying to point out, most times what I write about falls on deaf ears.
I remember the late sixties and early 70's. Even though I was in the Army at the time in a strictly defensive job, I still managed to make the protests and marched in the marches. I thought that Americans had become aware of what this country was all about and that my generation would have some say in stopping the endless wars and help stop the rape of the third world.

Then the Vietnam War was over and most people cut their hair and joined the mainstream of American life, turning their backs on the things that they had felt so strongly about. Ford then Carter and then Reagan with his voodoo economics delivered the excitement of the chase for the almighty dollar. The people who once demonstrated in Chicago and Detroit and Kent State and West Potomac Park were looking for "positions" and were building their "portfolios". The age of the flower child died and the age of consumerism took its place.
When I left the Army in 1995, the country wasn't doing that badly. Nobody knew that we were using depleted uranium (DU) in Bosnia. Nobody really noticed when Bill Clinton signed the first draconian terrorism bill that weakened 1st amendment privileges among other things. We didn't seem to be watching as the President expanded his powers as we were too shocked at the bombing in Oklahoma and the attack on the USS Cole to notice.
When Bush became President, nobody had him pegged for what he was. When he brought in recycled Nixon People and Reagan people, everyone seemed totally complacent. The disaster of 9/11 brought an entire new paradigm in American thinking. The Israeli movers that had a camcorder on the top of an adjacent building and started dancing around when the first plane hit the towers were arrested and quietly sent back to Israel.
This information given to the Bush Administration was ignored. The main attempt of the administration was to invent a huge group of militant Muslims operating in 87 countries that was led by Osama Bin Laden. The name of this Washington invention was called al Qaeda. This in Arabic means "The Base". It was originally a database. This is what Wayne Madson wrote about al Qaeda:


Shortly before his untimely death, former British Foreign Secretary Robin Cook told the House of Commons that "Al Qaeda" is not really a terrorist group but a database of international mujaheddin and arms smugglers used by the CIA and Saudis to funnel guerrillas, arms, and money into Soviet-occupied Afghanistan. Courtesy of World Affairs, a journal based in New Delhi, WMR can bring you an important excerpt from an Apr.-Jun. 2004 article by Pierre-Henry Bunel, a former agent for French military intelligence. - Wayne Madsen Report
This is the group that the Bush Administration used to strike fear into the hearts of Americans. The more fearful the population, the more power for the government, it didn't stop there however; he tried to tie Iraq into the events of 9/11. When that didn't work he started a mass deception in that Iraq had weapons of mass destruction aimed at America.
That's when people of conscience started writing articles shooting holes in the administrations rhetoric. It hasn't stopped yet. All through the internet the truth has been told and told correctly and the majority of Americans still refuse to listen. We are now bogged down in two wars and Israel is committing war crimes and genocide against the Palestinian people with America's blessing. We have elected a new President that has appointed Democratic Neo-Cons to his cabinet that have never seen a military action that they didn't support. Obama and Biden both accused Russia of invading "The peaceful tiny democracy" of Georgia, even though reports from the ground were telling a different story: that Georgia had attacked Russian peacekeeper with rockets for four hours before Russia took action.
When are all of the lies and military operations against enemies with weapons that are banned by International Law going to stop? When is the United States and Israel going to stop the wholesale slaughter that has been going on for years now? Most importantly, when are American citizens going to wake up from their slumber and demand that we stop spending 54% of the worlds military spending on our military budget? I can write about international crimes against humanity until my fingers bleed, but until the majority of Americans wake the hell up and realize that they have been robbed by the bailouts and tricked into supporting military action against a phony enemy, nothing will be accomplished.
Until we get rid of corporate personhood and allow other political parties besides the corporally owned Democrats and Republicans to participate in national debate, nothing will change. Corporations only care about profit; they sure as hell don't care about us Americans except for how to separate us from our money. The taxpayers just about own most of the banks now, but the banks can't even say what they did with the bailout money! Meanwhile the mainstream media turns a blind eye to everything I have discussed in this article for fear of reprisals by their corporate advertisers and the government.
I have said this before and I'll say it again: If you are not part of the solution, you are part of the problem. Staying silent while we are robbed of our Constitutional Rights along with all the Federal money that's been squandered makes all silent Americans complicit in their own rape by the government and the corporations and corporate bankers. Everyday that I write an article I hope that people will understand exactly what is happening here. Unless we become aware of exactly what is going on, we will be left with a gutted dictatorship of the aristocracy. We will be serfs in our own country, and yes, it's that bad.
timgatto@hotmail.com
http://dandelionsalad.wordpress.com/2009/01/15/americans-refuse-to-
accept-reality-by-timothy-v-gatto/
Why recognize Israel?
By Danny Rubinstein
26/09/2006
Israel's stance against recognizing a Palestinian government composed primarily of Hamas members who do not recognize Israel seems completely understandable. Why should Israel recognize the Hamas movement, which has been declared a terror organization by the countries of the world and whose basic charter claims that "the Zionist entity" has no right to exist?

The Hamas charter was composed after the first intifada erupted in 1987 - that is, nearly 20 years ago, and it reflects a different Palestinian political reality than the one existing today. This does not make much difference to the State of Israel. A substantial Israeli and international effort was invested in the past to convince the PLO to revise its national charter and recognize Israel. A similar demand is now directed at Hamas. Is this movement capable of change?

Several Hamas spokesmen recently said that the movement's leadership was surprised by the scope of its election victory. Hamas activists expected (as projected in the polls) that their movement would garner over a third of the votes and lead a large opposition bloc. But to win a majority of about two-thirds of the parliament and to be able to put together a government by itself? They did not dream of this and they did not prepare for this. If they had prepared, they might have revised some of their rigid ideology a bit, softened their political line in some way and accepted, for example, the Arab initiative that recognizes Israel within the 1967 borders - an initiative on which all of the Arab states have agreed. Are you such heroes that you stand in opposition to all of the Arab states? One day, we will ask the Hamas prime minister, Ismail Haniyeh.


However, in light of the political reality in the Palestinian public, one can confidently say that the Hamas leaders' myriad of linguistic tricks will not meet the demand to recognize Israel, and the gap between them will widen. The representatives of the Quartet (including American diplomats) who met prior to the holiday as the United Nations' General Assembly convened, understand this. Some of them were undoubtedly influenced by the explanations provided by the chairman, Mahmoud Abbas.

Most of the Palestinian public is not demanding that Hamas recognize Israel. This, at least, is what a reliable survey conducted in the territories indicates. The explanation for this is expressed by Hamas spokesmen in every corner, from Rafah to Jenin, and is very accepted in the territories: Look, Yasser Arafat and the PLO recognized the State of Israel in the Oslo agreement and what did they gain from that? Only suffering and misfortune.

The economic siege on the West Bank and Gaza Strip, the targeted killings, the raids and checkpoints can be explained as an Israeli defense against terror attacks. But how can one explain the doubling of the number of settlers in the West Bank and Jerusalem since the Madrid conference and Oslo agreement? Since the 1996 elections in Israel, and almost through the end of Ehud Barak's government, there was quite a long period of quiet on the security front. There were almost no terror attacks. During that period, as before, the great momentum of settlement continued. The population of settlers grew from 100,000 to over 200,000 during the 1990s.

When the Israelis build large new neighborhoods in East Jerusalem (Har Homa and Reches Shlomo), expand the neighborhoods and settlements in the Muslim part of the Old City, in Silwan, Ras al-Amud and Sheikh Jarrah, expel Arabs from the city and surround them with tens of thousands of Jewish settlers in a tight belt from Upper Beitar in the south, via Ma'ale Adumim in the east and Givat Ze'ev in the north - this conveys a clear message: There is no chance that the capital of the Palestinian state will be established anywhere in Jerusalem. If you add to this the growth of settlements in Samaria, Ariel, the suburbs of Ramallah, in an expanded Gush Etzion and Mount Hebron, the Israeli message becomes unequivocal: You Palestinians have no chance. You recognized Israel and what you received in return was the liquidation of your national hopes. So why should Hamas repeat the same recognition whose results we have already seen?

Obama Backpedals On Afghan Troop Surge

Virginia M. Moncrieff
International Correspondent
Posted February 7, 2009 | 01:01 PM (EST)
We may soon witness a reverse triple back flip with pike by the Obama administration over his campaign promise of increasing troop numbers in Afghanistan.
Despite Obama's pledge to undertake an initial surge of a further 17,000 troops (and a possible 17,000 more late in 2009) into the war-turned-quagmire, the increase has little domestic support inside the US. Importantly and tellingly, a troop increase is also being questioned at the highest levels of the administration.
Defense Secretary Robert Gates has cited a need for "reassessment" as the reason for the delay in deployment, and this is not a lily-livered cop out. Reassessment is much needed, as a chorus of military strategists and analysts are questioning whether a surge will work in Afghanistan as it did in Iraq.
With a raft of strategy reviews, new advisors and a driven, head strong and brilliant Special Envoy in Richard Holbrooke, it looks like there are going to be many cooks in this messy kitchen. Also in the mix are formal recommendations from the Joint Chiefs of Staff, the White House National Security Council and General David Petraeus of Central Command.
The new orthodoxy seems to be giving up on the notion of democracy-by-force (always a recipe for disaster) and aiming instead for regional security in both Afghanistan and Pakistan.
"We are not going to be able to rebuild Afghanistan into a Jeffersonian democracy," President Obama said last week.
The important NATO summit which starts on April 3 will be President Obama's first major world stage event; it's the natural deadline for US policy to have been thrashed out, negotiated behind closed doors, committed to, unveiled (and no doubt derided).
"We need more than a military solution," national security adviser, retired General James L. Jones said in Europe last week.
For starters, a national government that has the confidence of the Afghan people is essential.

That government does not necessarily have to be democratic. It is time for the West to lay our values aside and let the political marketplace of Afghanistan decide on the form of government that will work for it. This does not mean standing back and allowing wholesale slaughter, human rights abuses or a return of the appalling treatment of women and girls, but it does mean ditching Bush's high reaching, self-defeating Utopian delusions.
"Afghanistan is the fourth or fifth poorest country in the world, and if we set ourselves the objective of creating some sort of Central Asian Valhalla over there, we will lose," Secretary Gates has said. "Nobody in the world has that kind of time, patience or money, to be honest." Afghanistan must have a working, intelligent army, which can think and act strategically. It also needs a professional, trustworthy police force that will uphold the rule of law.

In the past year, allied soldiers have been dying in record numbers, regional and strategic alliances (most notably with European allies) have become strained. Thousands of Afghan citizens have been killed. Taliban attacks are up, anxiety and lack of confidence are at record highs and the view inside the country of Hamid Karzai makes George Bush look like he was positively Mr. Popularity in US in the dying days of his presidency.

President Obama has started to talk down previous big goals in Afghanistan. "What we can do is make sure that Afghanistan is not a safe haven for al-Qaeda. What we can do is make sure that it is not destabilizing neighbouring Pakistan, which has nuclear weapons," he said. To define a goal as something that a country is not, may sound like a defeated and defeatist target. But make no mistake; those objectives are tough, tough goals. The decisions made in the next few months are critical for the way forward, because right now it's drowning time in Afghanistan.
Abu Dhabi to pay circumcision for Muslim converts
February 7, 2009



Social security in the wealthy emirate of Abu Dhabi will cover the cost of circumcising men who convert to Islam, the Al-Bayan daily reported on Saturday.
The health authority in the capital of the United Arab Emirates said the government-backed insurance firm, Daman, has included circumcision operations in existing insurance policies for new Muslims, the paper said.
Converts will have to present a certificate, issued by an Abu Dhabi court, attesting to their conversion.
Authorities in the UAE, where expatriates represent more than 80 percent of an estimated population of 6.4 million, announce every year that hundreds of people convert to Islam, especially among South Asian labourers.
Muslim doll to teach children Quranic Arabic to go on sale in Asda
A 'Muslim Doll' to help Asian immigrant children learn Quranic Arabic will on sale in Asda next month, as the supermarket group launches a major drive into the ethnic market.
By Harry Wallop, Consumer Affairs Editor
07 Feb 2009

Desi Dolls which are set to go on sale in Asda Photo: Paul Grover
The dolls are the creation of a former Goldman Sachs banker determined to inject some fun into young children's Islamic study.
The 18 inch high soft doll, packaged as "Talking Muslim Doll", speaks various phrases if you squeeze their foot, with the girl doll saying: "As-Salamu'Alaikum," the traditional islamic greeting, "my name is Aamina and I am a Muslim."
The boy doll, called Yousuf, comes wearing a mosque cap. Both say essential Quranic words, phrases and surahs (prayers) and, crucially, translate the Arabic sentences into English.
Farzana Rahman, the founder of Desi Doll Company, which makes the dolls said: "I wanted to create something fun. When I was a child I went to the mosque every day, learnt my prayers and recited them. But there was nothing much fun about it.
"I wanted my children to have more fun."
The dolls will initially be sold in the Bradford branch of Asda, which it hopes will become a blue print for the supermarket's plans to dominate the ethnic market.
An extensive new range of goods are being launched in the next few weeks, including an Asian range under the George Label, including saris, salwa kameez suits, jewellery and shawls.
West Indian hair care products, Polish mother day cards, and Indian fashion magazines will also join the range.
The push comes after the supermarket group enjoyed a significant sales increase from its ethnic range last year, after it introduced a lot of food aimed at Eastern European immigrants. Sales of borscht, herring, sauerkraut and carp increased by 90 per cent last year, along with West Indian fruit and vegetables.
Noor Ali, Ethnic non-food buyer at Asda, said: "The dolls are just a small part of our expansion into ethnic non-grocery arena. Our ethnic food range has seen a 90 per cent increase year on year and we see a big opportunity for further growth."
If successful, the range including the dolls will be rolled out across any Asda store in an area with a high proportion of ethnic customers.
The £24.99 Muslim Dolls are primarily aimed at Asian families that want their English speaking children to have a good grasp of the Arabic phrases that will hear at home or in a mosque.
Mrs Rahman has three children under the age of 8 and started the company when she had twins two years ago and decided to leave her job as a fund manager at Goldman Sachs.
She admits that the dolls have caused a few Islamic people to express concerns she is trivialising the learning of the Quaran, and is nervous – in the week of the Golliwog row – how they will be perceived.
But she is confident that most people will realise they are fun. "There are a lot worse things you could buy for your children. They are certainly far more educational than most video games," she said, adding that her research showed the wife of Mohammed had played with dolls.


Israelis receive threatening email from Hamas
Many citizens get messages from al-Qassam organization threatening to kidnap, kill Israeli officials. 'This is jihad, victory or martyrdom,' email says
Erez Ronen
Published: 02.07.09, 08:51 / Israel Culture
"More than 1330 of Islamist fighters had entered Palestine," said a threatening email received by many Israelis on Thursday night. The message warned that several prominent people would be abducted and killed. "This is jihad, victory or martyrdom," it concluded.


The message was sent in English, Arabic and Hebrew from an email account registered on Google's Gmail service, which enables any person to open an account for free without requiring identification.

The exact number of people who received the message is unclear at the moment. It is also unknown whether the email was only sent to Israelis or to a wider variety of people.

Many of those who received the message said it had been sent to their private email addresses which are unknown to external sources.

Surfers reported of additional message which arrived in their mailboxes on Friday morning, expanding the text included in the original message and offering them to join the organization as spies. Some of the emails included shocking images and links to YouTube videos.
The additional emails were titled "The End of Israel", and were sent by a person calling himself "Youth of Islam" from the address i.am.hitler2099.
"The interesting thing is that I'm indeed an Israeli, but I live in New York. The email was sent to my hotmail account registered in California," said Ron from New York.

Adam, another Israeli who received the message, was surprised to find it in his mailbox. "This is an address which rarely receives spam (junk mail), as it is only used for personal needs. I really don't understand how they could have known this address belongs to an Israeli," he said.

Email sent by Hamas?
The email was sent on behalf of al-Qassam, Hamas' military wing, but since it was sent from an anonymous address it is unclear whether this was an official Hamas message or an enthusiastic supporter who decided to send the threatening messages of his own accord.


The message was sent in a number of languages, and it appears that its senders used automatic translation services for the English and Hebrew versions as it includes many grammatical errors.

This is not the first time Hamas or people on its behalf use electronic means in order to threaten Israelis. During the fighting in Gaza, many Israelis received threatening text messages on their cell phones and messages sent via the Skype software from the Palestinian organization.



--
Whiz News provides news, views and interesting articles from various sources and all perspectives.

Video Obama Will Bring In The New World Order / Celebrating Halloween in February Jim Kirwan / The Apartheid State of Israel Jim Kirwan /



The CIA says Iran is TEN years away from developing a nuclear weapons program.

Bush & Cheney decided - based on nothing - to shorten that to one year. That was 2007.

Now, in 2009, Obama has also decided that the CIA and other analysts are wrong. Iran
is - again - "one year away" from developing nuclear weapons.

This is a political position, not one based on facts.

http://www.brasschecktv.com/page/560.html

- Brasscheck

Brasscheck TV
2380 California St.
San Francisco, CA 94115

I think Iran have nuclear weapons, primed, targeted and ready to go.
It's just that they are more ethical in their silence to keep their enemies guessing and to create a deterrent.
I also think that if America and Israel really trully thought that Iran was still a year away from having these
nuclear warheads; they would have attacked by now, because that's The American Way! GJ (UK)
There doesn't seem to be much commonsense in this World anymore



Manufacturing Consent For An Attack On Iran?
U.S. Now Sees Iran as Pursuing Nuclear Bomb By Greg Miller

Obama's nominee to serve as CIA director, Leon E. Panetta, left little doubt about his view last week when he testified on Capitol Hill. "From all the information I've seen," Panetta said, "I think there is no question that they are seeking that capability."
http://informationclearinghouse.info/article21971.htm


US Intel Confirms Iran Not Developing Nukes By Press TV

The new chief of US intelligence has confirmed the findings of a 2007 intelligence report that Iran has no nuclear weapons program. Dennis Blair told the Senate Intelligence Committee that his organization has assessed that Tehran does not have nuclear weapons design and weaponization work.
http://informationclearinghouse.info/article21972.htm





YouTube - New Kissinger NWO : New World Order & Obama Worship
Play Video
... says an Obama presidency is a great opportunity to set up a New World Order. ... But he is right that Obama will bring a New World Order, he is the perfect ...
www.youtube.com/watch?v=GThfWVCfjVo - 96k - Cached





The Apartheid State of Israel
Jim Kirwan
2-11-9

“The United States administration, previous administrations, the European governments, the whole official international community has been complicit with Israeli crimes, war crimes in Gaza and in other places, and silent about forty-one years of occupation. So, basically, people in Israel think they can do what they want. If they violate human rights in such a terrible manner and nobody is objecting, I think they think they can move forward towards racism and an apartheid system, and that is unfortunately the case today.
And that gives you a very, very simple picture of how tragic the situation is in Israel today. And it puts us all, as Palestinians, in front of a very clear task: we have to struggle against this apartheid system. We have to break this apartheid system. But the challenge now is on the side of the whole international community, which has been either silent or complicit or trying to avoid the issue, when it is very clear.”
HANIN ZOUBI: [translated] Indeed, Lieberman [one of the Israeli candidates] is a natural result of the racist policies in this country for sixty years. Lieberman didn’t bring anything new. All the parties demand loyalty from the Arabs. The right, what’s called the center, what’s called by mistake left or center-left, they all demand loyalty from the Arabs. The new thing by Lieberman is only giving the punishment. The punishment for no loyalty is pulling the citizenship.”
“…anybody who is against war, for instance, that is conducted by Israel, on Gaza or anywhere else, would be considered as an illoyal or unloyal citizen. Anybody who is not supporting occupation would become not loyal to Israel. This is why it’s very dangerous and risky. It is putting the oppressed, which are the Palestinians and the Arabs, who are oppressed from racism and discrimination, in a situation where either they approve of their own oppression by the Israeli government or they become disloyal to the Israeli government and then entitled to losing their citizenship. That is the risk, and that’s why it looks like a very clear neo-fascist approach.
Now, on the issue of settlements, I want to say that since 1967 there hasn’t been any period where there was a real freeze of settlement activities. On the contrary, they have been growing at a much faster rate, especially during the times of the so-called peace process. During Annapolis period, the rate at which settlement continued to expand was forty times more than before Annapolis. And now we are witnessing the creation of even new—whole new settlements.” (1)
Which brings us to this global-crisis of having the world’s most unstable and unfinished “nation” in the position of becoming even more rabid, in their pursuit of extermination for anyone not sharing their belief, in the superiority of the Zionist State, over everyone else on the planet.
For those that have not kept up with what Israel has taken control of, here are just a few of the things that have eluded the headlines. Israel is in charge of US stockpiles and facilities for all our nuclear weapons (leaked out during the mystery surrounding the missing nuke aboard a B-52 flight from South Dakota to New Orleans). Israel has also blackmailed the USA into backing their bid to achieve The Greater State of Israel which includes parts of Iran, Iraq, Syria, Turkey and Lebanon, and possibly parts of Saudi Arabia.
Beyond these recent leaks we know for certain that JFK tried to prevent the Israelis from obtaining nuclear weapons, and that not only failed, but along the way JFK ended up dead. His successor, Lyndon Baines Johnson was blackmailed into ‘Not-stopping’ the Israeli attacks upon the unarmed USS Liberty, during the six day 1967 war. Thirty-four American sailors were killed and 174 were injured, many seriously. The attack was covered up by Senator John McCain’s father—Admiral McCain. (2)
Then it was Robber-Baron-Ronnie’s turn to turn traitor and run from Israel. This time it was the bombing of the US Marine Barracks in Beirut, Lebanon that killed 242 U.S. Marines, and we failed to challenge or investigate that false-flag terror attack upon us by Israel. Time and again events have been perpetrated against US interests that very specifically served Israeli interests, regardless of the cost in American lives.
We give Israel more money than all the other foreign-aid combined; yet what do we get in return? We get attacked and we are told exactly what we can and cannot do in foreign affairs and in all things having to do with the military security of Israel. Iraq and Iran as well as Pakistan and Afghanistan are all targets because they play into the creation of The Greater State of Israel. Turkey, Lebanon, Syria are also part of this massive war on all of Israel’s neighbors. Israel for her part claims that all she wants is ‘peace,’ but what she means is that all she really wants is another “piece,” of every country that is anywhere near her ever-shifting borders. The US government calls Israel our partner and ally: what she is our master, both at home and abroad—and Americans do not protest this blatant insult because they've been brainwashed!
No one has ever explained what we get for all that money and support that ordinary US taxpayer’s give to Israel. If we have a ‘partnership with Israel, where is the reciprocation—where is the benefit to all those American citizens that Israel thinks of as her enemies?
Israel has been a constant irritant to the entire world for the last 60 plus years. Israel hates everyone that does not bow-down to her infamous hatreds and unquenchable greed. Israel has become a pariah among nations, and a curse upon the planet. The world needs to have an immediate “Regime-Change” in Israel—especially now that her new government has chosen to eliminate democracy in favor of Apartheid, and Israel’s stated goals have turned from supposed openness to just another fascist regime in a world that is plagued by state-terrorism at every turn. Here’s Cynthia McKinney, just one of AIPAC’s intended victims who has continually fought back. (4)
Jews have been banished forty-seven times in a thousand years – from a wide variety of countries and by very different peoples. The major exception has been the United States. We have not allowed any other people to take over the lives of Americans in their own country—only Israel gets away with that. And “this” is only possible when good people continue to choose to “Do Nothing”! (5)
Here’s just an excerpt from one example:

“Commenting on the latest Israeli one-directional onslaught against the Palestinians of Gaza Strip, the Israeli 10th TV channel has disclosed that the Israeli genocidal forces had used half of its air force and had launched at least 2500 air raids against Gaza Strip.

The television military correspondent stated that the Israeli warplanes had dropped more than a thousand tons of explosives, including white phosphorous and DIME (Dense Inert Metal Explosive) bombs, during three weeks on the virtually unarmed densely populated 360 square Kilometers Strip.

He added that the shells fired by tanks, artillery, gunboats, and infantry were not included in those fired by the air force.

After a whole week of continuous air bombardments Israel sent in its elite foot soldiers; 30,000 of them, and called in 10,000 of its reservists. Armed with the latest weapons of mass murder, covered with an umbrella of free reigning air force, and accompanied with raining shells of heavy artilleries, they drove their tanks into the civilian towns murdering civilians and destroying every structure in their path.

Living outside of Gaza one cannot fully understand the barbarity of this genocide especially when the Western media had barely covered any of its atrocity. To gain a slight idea of its enormity one should remember that, during the 6-days war of 1967, this same Israeli army was distributed on four fronts; Egyptian, Jordanian, Syrian, and Lebanese, and it was fighting regular armies. Now the whole brunt of this army is concentrated on a small strip against unarmed and untrained civilian population.

Latest official count was 1350 murdered, 40% of them were children, and 5300 were injured; mutilated and amputated. It was reported that 80% of the injured were the victims of burning phosphorous bombs. More dead are being discovered under the rebels, and many seriously injured are expected later on to die.

Israeli tanks had left several city blocks completely destroyed without any homes or structure standing. The tanks shelled homes and apartment towers. Due to the small size of Gaza Strip Palestinians had to build vertically. Many apartment towers went up 15-20 stories high with each story containing 6-8 apartments.

A total of 20,000 buildings were completely or partially burnt and damaged. The UN has reported that more than 50,000 Palestinians are left homeless and are now crowded into 50 emergency shelters.

An estimated of 50,000 more are living with relatives and in tents they erected on the ruins of their homes.

The Israeli bombardment targeted everything in Gaza including government buildings, police headquarters, banks and business offices, the main university, 67 schools sheltering civilians, shopping centers and market places, factories, water, sewer, and electricity infrastructures, private homes and apartment towers and charity organizations.” (6)

We have a place that used to be a nation, but is no longer, because our leadership is wholly owned by others. Out of 535 members of congress 531 of them voted against the people of the United States and the world, when they endorsed the slaughter outlined above and more fully in the footnote. Israel stands for everything the founding documents opposed in the Declaration of Independence, the Federalist papers, and ultimately in the US Constitution and its Amendments.

If any other nation but Israel had done what Israel is now continuing to do to the world; the outrage and fury would have forced it from the global stage long ago. And probably, the world would have banished any surviving Zionists to uninhabitable parts of the earth, or to life imprisonment, if not death. But what have we done—NOTHING except to continue to give them whatever they demand!

Now Israel is a place where Apartheid will flourish, and where the people there shall no longer have rights or freedoms outside the narrow view of the fascists that run the world’s smallest rogue state: A restless ruthless state with the fourth largest military on the planet, which we paid for ten times over. If we let that dung-heap continue to rule our every action, then we shall deserve to live in the hell that has been designed by the Zionists for us all.We could make a start by forcing all dual-citizens out of federal office: because our government ought to be reserved for Americans alone to occupy, as any other policy (such as the one that we have now) is a clear and potentially treasonous conflict of the national-interests of the United States.
kirwanstudios@sbcglobal.net
1) The Israeli Elections
http://www.democracynow.org/2009/2/11/palestinian_lawmaker_mustafa_barghouti_on_the

2) Israel’s Attack on the USS Liberty
http://www.counterpunch.org/stclair06082007.html

3) Beirut was an Israeli Bomb
http://judicial-inc.biz/Beirut_false_flag.htm

4) What is Dignity – video
http://www.youtube.com/watch?v=yfb15ySoAVQ

5) Jews have been Banished 47 Times in a thousand years
http://www.rense.com/general85/banished.htm

6) Israeli Spokesman Brags about Controlling America
http://www.daily.pk/world/americas/9334-israeli-spokesman
-says-we-control-stupid-americans.html




Celebrating Halloween in February

Jim Kirwan
2-12-9

The totally-distorted state of American affairs is crying out for some creative ‘new beginnings’ toward placing blame and removing problems—if we are ever going to take back this broken nation. This suggestion goes out to those that have experienced Burning Man, and Carnival, in the same way as anyone does who chooses to celebrate LIFE.

I think some artists ought to get together and collect a whole series of smallish manikins; then create oversized and extremely lifelike heads for them. These revised dummies could have the oversize faces of those that have brought us into this Matrix of Monsters: This could include the current & previous Head of the Federal Reserve, the US Treasury, the SEC, the entire upper-echelon of the White House Staff, and the leadership in Congress, as well as the Supreme Court, the Joint Chiefs of Staff, etc. And just for added measure most of the real bastards from the Cheney-Bush-Cabal ought to also be included.

These characters could then be arranged in settings befitting their treachery, clothed only in the various flags that represent their true interests: Israel, Mossad, The House of Rothschild, the CIA, the Bank of England, The City of London, the Vatican, Homeland Security, The Bilderberger Group, the Tri-Lateral Commission and the Illuminati - you get the idea.

Backdrops could also be easily created for key parts of the government, where these flags could also be used to show affiliations that are still not apparent to the country as a whole. The Congress ought to feature alternating Israeli flags (those really long ones Nazi-style as are used for formal occasions), hung between the columns as Obama did for his inauguration, but alternated with the Skull and crossbones that the Pirates of old made so very famous. The puppets could be shown inside the vaults where they’ve been gathering to raid and plunder our treasury and our future—without a backward glance—because they must never be forced to look at what they’ve already done to everything they’ve touched. In special cases perhaps a mock Guillotine could symbolically be used to lop off a few heads, just to vary the activities a bit.

Center-pieces for the tables and or decorative columns that might be needed to lend formality should include clever arrangements of razor wire and broken glass, instead of flowers, with the occasional detached hand or foot caught in this deadly embrace might be appropriate for this occasion. And there should be money, money everywhere: Heaps and mounds of money and guns and drugs: Of course the words Freedom & Democracy MUST be everywhere, wrapped as this one is in razor-wire. You know all their favorite things; when you begin to get creative then the real fun starts!

Each of these characters needs to be slowly burned in effigy; and all of it should be captured on videotape, for release on U-tube. This way demonstrations could appear on the White House Lawn, without needing to be there in person: A good thing too, because it's all been sealed off from the people that own that lawn as well as the White House itself. With or without dialogue; but giving the public some credit for making connections might be too great a stretch, still with thoughtful planning and a concise dialogue, perhaps the public might begin to understand just who our friends are; and who they are not?

In any event this celebration of Halloween in mid February just might lend an added boost to the spirits of so many millions of frustrated and outraged Americans, as the hours tick away before everything implodes into the dust of history.

kirwanstudios@sbcglobal.net




When George Bush Sr. was running against Ronald Reagan, he rightly called Reagan's economic plans "voodoo economics."

Too bad the "morning in America" people didn't listen to him because the voodoo had worn off after twenty-eight years
of go-go and flim-flam and we're all paying the price.

When Bush Sr. lost the nomination and took the VP spot, he stopepd talking about the reckless
idiocy of Reagan's policies and applied his fertile and larcenous mind to figuring out how to personally
profit from the madness which he and his family have done mightily.

Here's where we stand now according to a Congressmen who is honest enough to put all the cards on the table.

What gets artificially pumped up, must come crashing down.

Details:

http://www.brasschecktv.com/page/559.html

Brasscheck TV
2380 California St.
San Francisco, CA 94115




----- Original Message -----
From: Lifeforce
To: AB
Sent: Friday, February 13, 2009 6:39 AM
Subject: Fw: Obama’s attorneys scrambling to withhold birth, college records



Subject: Obama’s attorneys scrambling to withhold birth, college records


OBAMA WATCH CENTRAL
'SANCTIONS' SOUGHT IN ELIGIBILITY CASE
President's attorneys file motion demanding birth, college records be withheld from public
Posted: February 13, 2009
12:15 am Eastern
http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=88746





Breaking News and Commentary from Citizens For Legitimate Government
14 Feb 2009
http://www.legitgov.org/
All items are here:
http://www.legitgov.org/#breaking_news
US Department of Defence role in CIA's secret jails --Defence sought to delay the release of Guantanamo prisoners who were scheduled to be sent home by a month and a half in order to avoid bad press. 14 Feb 2009 Three human rights groups have obtained documents that confirm US Department of Defence involvement in the CIA's "ghost" detention program, and the existence of secret prisons at Bagram air base in Afghanistan and in Iraq. The documents obtained as part of a long-running legal battle using freedom-of-information laws were released by the Department of Defence to Amnesty International USA, the Centre for Constitutional Rights and the Centre for Human Rights and Global Justice last week.
US most wanted terrorist suspect in new extradition fight in Britain 13 Feb 2009 One of the US's most wanted terrorist suspects, Khalid al-Fawwaz, has launched a new attempt to fight extradition from Britain. At the High Court in London, lawyers for al-Fawwaz and Bary, said conditions at the Supermax prison in Florence, Colorado would breach article three of the Human Rights Act which ensures protection from torture and inhuman or degrading treatment or punishment. The prison is likely to play a key role when the detention facility at Guantanamo Bay is shut down.
Air Force lawyer fights to free Guantanamo inmate 13 Feb 2009 A U.S. military lawyer blitzed London this week, calling for the immediate release of her client, who allegedly was trained in an al Qaida [al-CIAduh] terrorist camp, from the U.S. military prison at Guantanamo Bay, Cuba. Claiming that Binyam Mohamed, a former British resident who's on a hunger strike at Guantanamo, will leave prison "insane" or "in a coffin" if he's not released soon, Air Force Reserve Lt. Col. Yvonne Bradley has made herself a thorn in the side of her military superiors, her commander-in-chief and other officials on both sides of the Atlantic.
Doctor flies to Guantanamo to check on condition of hunger striker 13 Feb 2009 A doctor will be flown to Guantanamo Bay to check on the condition of Binyam Mohamed, the torture victim who is on hunger strike there. In a statement, David Miliband, the Foreign Secretary, revealed that a team of officials will accompany the doctor to prepare for the Ethiopian-born former British resident's return to the UK. Britain is seeking to secure Mr Mohamed's release from Guantanamo Bay, where he is believed to be in a fragile condition after going on hunger strike in protest at the refusal of the US authorities to release documents said to show British security service involvement in his torture.
Blackwater Changes Its Name to Xe 14 Feb 2009 Blackwater Worldwide is abandoning the brand name that has been tarnished by its work terrorism in Iraq, settling on Xe (pronounced zee) as the new name for its family of two dozen businesses. Blackwater Lodge and Training Center, the subsidiary that conducts much of the company’s overseas operations and domestic training, has been renamed U.S. Training Center Inc., the company said Friday. The company’s rebranding effort grew more urgent after Blackwater guards in Baghdad were involved in a shooting episode in September 2007 that left 17 Iraqi civilians dead.
Cost of war in Iraq and Afghanistan rises to £4.5bn 13 Feb 2009 The cost of Britain's military operations in Iraq and Afghanistan have risen sharply to £4.5 billion over the last year, the Ministry of Defence said. The cost represents a 50 per cent increase on the previous year. The military mission in Afghanistan accounted for £2.6 billion, up from £1.5 billion last year. Despite the coming withdrawal from Iraq, the costs of operations there rose from £1.5 billion to £2 billion.
Suicide attack kills 40 in Iraq 14 Feb 2009 A female suicide bomber yesterday killed 40 people and wounded 81 in the worst of three consecutive days of attacks against Shiite worshippers in Iraq. The woman detonated explosives in a tent filled with women and children resting during a pilgrimage south of Baghdad, in an assault thought to be the deadliest this year.
Australian troops kill 5 Afghan children 14 Feb 2009 Australian special forces soldiers have killed five children in an attack on a compound in Afghanistan. The tragedy has triggered a strong warning from the Afghan Government that civilian deaths [war crimes] are playing into the hands of the Taliban.
Feinstein comment on U.S. drones likely to embarrass Pakistan The Predator planes that launch missile strikes against militants are based in Pakistan, the senator says. That suggests a much deeper relationship with the U.S. than Islamabad would like to admit. 13 Feb 2009 A senior U.S. lawmaker said Thursday that unmanned CIA Predator aircraft operating in Pakistan are flown from an air base in that country, a revelation likely to embarrass the Pakistani government and complicate its counter-terrorism collaboration with the United States. The disclosure by Sen. Dianne Feinstein (D-Calif.), chairwoman of the Senate Intelligence Committee, marked the first time a U.S. official had publicly commented on where the Predator aircraft patrolling Pakistan take off and land.
Pakistan: U.S. Missile Kills at Least Four 14 Feb 2009 Pakistani intelligence officials say a suspected U.S. missile strike by a drone aircraft has killed at least four people near the Afghan border. The officials say some people have also been wounded in Saturday's attack in the South Waziristan tribal region.
Israel mobilizes forces on Lebanon border 12 Feb 2009 Israel has reportedly mobilized its forces along its northern borders amid concerns that Tel Aviv may be planning to provoke Lebanon. The Lebanon Files news agency reported Thursday that Israeli military forces were seen heavily patrolling the northern border.
US intel confirms Iran not developing nukes 13 Feb 2009 The new chief of US intelligence has confirmed the findings of a 2007 intelligence report that Iran has no nuclear weapons program. Dennis Blair told the Senate Intelligence Committee that his organization has assessed that Tehran does not have nuclear weapons design and weaponization work.
Poll: Most want inquiry into anti-terror tactics 11 Feb 2009 A USA TODAY/Gallup Poll finds majorities in favor of investigating some of the thorniest unfinished business from the Bush regime: Whether its tactics in the "war on [of] terror" broke the law. Close to two-thirds of those surveyed said there should be investigations into allegations that the Bush team used torture to interrogate terrorism suspects and its program of wiretapping U.S. citizens without getting warrants. Almost four in 10 favor criminal investigations and about a quarter want investigations without criminal charges.
Mega barf alert! Homeland Security TV: Be Very Afraid By Ken Silverstein 11 Feb 2009 This is new to me: the Homeland Security Television Channel, "the world’s first online, on-demand television network dedicated to homeland security and global development." ...[T]he editorial board includes Tom Ridge, the former head of the Department of Homeland Security and CEO of Ridge Global of (one of the channel’s sponsors); Rear Admiral David Stone, the former assistant secretary of Homeland Security for the Transportation Security Administration and CEO of the Alacrity Homeland Group; and the savior of New Orleans, former FEMA chief Michael Brown.
Secret files reveal NIU killer's past 13 Feb 2009 A former student who killed five people at Northern Illinois University last Valentine's Day had been 'drummed out' of the Army for hiding his psychiatric history and expressed admiration for famous murderers, CNN has learned... Steven Kazmierczak spent three years at Thresholds, a psychiatric center in Chicago, according to psychiatric records in the files. He enlisted in the Army in September 2001 but was discharged the following February for lying on his application about his mental illness, Army records state. [See: NIU Shooting 'Oddities'.]
9/11 widow killed in NY plane crash --Eckert was co-chair of activist group 'Voices of September 11th' 13 Feb 2009 One of the victims of the Buffalo plane crash was the widow of a man who died in the September 11 attacks, according to reports. Beverly Eckert was flying to the city for a celebration of what would have been her husband Sean Rooney's 58th birthday. Ms Eckert became co-chairwoman of the group Voices of September 11th.
Sept. 11 Widow Killed in Buffalo Plane Crash --Sept. 11 widow, activist killed in plane crash 13 Feb 2009 One of the victims of the Buffalo commuter plane crash, Beverly Eckert, was a Sept. 11 widow who put her never-ending grief to good use to make the country safer. A week before her death, Eckert met with President Obama at the White House as part of a group of 9/11 families and relatives of those killed in the bombing of the USS Cole... She became part of a small group of Sept. 11 widows, mothers, and children who became amateur lobbyists, ultimately forcing lawmakers in 2004 to pass sweeping reforms of the U.S. intelligence apparatus.
Crashed commuter plane was new, had good record 13 Feb 2009 A Pinnacle airlines official says the commuter plane that crashed near Buffalo, N.Y., was new and had a clean safety record, leaving investigators few immediate clues about why it suddenly plunged into a house minutes before its planned landing, killing 50 people. The aircraft crashed Thursday night about five miles from the runway, near the point where a pilot would begin setting the plane up for landing. Skies were foggy and winds were 17 mph, but there was no indication of anything out of the ordinary and no mayday call, according to a recording of air traffic control radio messages captured by the Web site LiveATC.net.
Records show Colgan flights had been fatality free 13 Feb 2009 Colgan Air, the operator of the Continental Connection turboprop plane that crashed in upstate New York on Thursday, has been flying for Continental Airlines since 1997 and operates propeller-driven planes out of the carrier’s hubs in Newark and Houston. In Colgan's 18-year history, according to National Transportation Safety Board records, Colgan had just one minor injury aboard a passenger flight...
Flight 3407 Plummeted Straight Down, Killing 50 13 Feb 2009 In the minutes before a turboprop plane plunged to the earth killing all 49 people aboard and one person on the ground, the pilot and crew were recorded discussing "significant ice buildup" on the plane's windshield and the leading edge of the wings, federal investigators said today. The black boxes recovered from the burning remains of Continental Express Flight 3407 also indicated that the de-icing button in the cockpit had been in the "on" position. Shortly after that conversation, Capt. Marvin Renslow deployed the plane's landing gear and wing flaps to slow down the plane in preparation for landing.
Flight 3407's Last Audio: No Mayday Heard Before Buffalo Plane Crash --Audio of the Last Conversation With Co-Pilot Seemed Calm, Then Went Silent 13 Feb 2009 The last conversation between the co-pilot of Continental Express flight 3407 and air traffic control sounded perfectly calm moments before the plane crashed into a suburban home near Buffalo, N.Y., late Thursday night, killing 50. There was no Mayday call before flight 3407, operated by Colgan Air, nose-dived at 10:25 p.m, killing all 49 people on board and one on the ground.
50 killed in NY plane crash; 2 Israelis suspected onboard --Foreign Ministry inquires on whereabouts of two Israeli nationals suspected to have been on flight that crashed in Buffalo, leaving all passengers dead. Continental Airlines says no knowledge of Israelis aboard flight 13 Feb 2009 Foreign Ministry sources following the plane crash in Buffalo, New York, which left 50 people dead, expressed concerns on Friday for the lives of two Israeli citizens who may have been onboard the aircraft.



Financial Crisis Called Top Security Threat to U.S. 13 Feb 2009 Director of National Intelligence Dennis C. Blair told Congress yesterday that instability in countries around the world caused by the current global economic crisis [the Bush Depression], rather than terrorism, is the primary near-term security threat to the United States. Blair also raised the specter of the "high levels of violent extremism" in the turmoil of the 1920s and 1930s along with "regime-threatening instability" [Hope springs eternal!] if the economic crisis persists over a one-to-two-year period.
US intelligence chief: World capitalist crisis poses greatest threat By Bill Van Auken 14 Feb 2009 In testimony before the Senate Committee on Intelligence Thursday, Washington's new director of national intelligence, Dennis Blair, warned that the deepening world capitalist crisis posed the paramount threat to US national security and warned that its continuation could trigger a return to the "violent extremism" of the 1920s and 1930s.
US Senate passes $787 bln stimulus, sends to Obama 13 Feb 2009 The U.S. Senate on Friday approved $787 billion in spending and tax cuts to boost the ailing economy, sending the emergency stimulus legislation to President Barack Obama, who is expected to sign it into law. The Senate voted 60-38 for the compromise bill on the same day the House of Representatives also passed it.
House passes $787B stimulus --Senate expected to vote on Friday evening. 13 Feb 2009 In a 246 to 183 vote largely along party lines, the House of Representatives on Friday passed a $787.2 billion economic recovery package that was drawn up, amended and negotiated in record time.
Regulators Close Banks in Nebraska, Florida 13 Feb 2009 Regulators on Friday closed Sherman County Bank in Nebraska and Riverside Bank of the Gulf Coast in Florida, marking 11 failures this year of federally insured institutions. The Federal Deposit Insurance Corp. was appointed receiver of the banks. Sherman County Bank, located in Loup City, Neb., had $129.8 million in assets and $85.1 million in deposits as of Feb. 12. Cape Coral, Fla.-based Riverside Bank had assets of $539 million and deposits of $424 million as of Dec. 31.
VA clinic warns of possible contaminant exposure 13 Feb 2009 Thousands of patients at a Veterans Administration clinic [Alvin C. York VA Medical Center in Murfreesboro] in Tennessee may have been exposed to the infectious body fluids of other patients when they had colonoscopies in recent years, and now VA medical facilities all over the U.S. are reviewing their own procedures.
Monsanto in Illinois: Homeland Security and USDA Plan Attacks Against Animals By Linn Cohen-Cole 13 Feb 2009 Below is a letter to livestock producers in Illinois asking them and others to contact the Governor’s office to ask to be allowed to be present at a meeting between Homeland Security and the USDA which involves NAIS and "surge capacity" under Homeland Security to attack and seize and destroy - "depopulate" an area of - animals. This meeting is about what will be done TO THEM but they are shut out. Many of you already know about Monsanto’s "rural cleansing" in southern Illinois of 200 - 400 farmers for using Steve Hixon as their seed cleaner. One is being sued for $400,000. In 2006, Monsanto made $160,000,000 in this Mafia-like extortion.
Peanut Company Files for Bankruptcy --Survey Finds One in Three People Are Not Confident in Food Safety System 13 Feb 2009 Capping an action-packed week in the investigation of a widespread salmonella outbreak, the peanut company at the heart of the examination has filed for bankruptcy. Peanut Corp. of America's Friday bankruptcy filing came after the list of recalled peanut products grew even longer Thursday night, when the company announced it was recalling all products shipped from a second of its plants.
In pictures: The World Press photography awards 14 Feb 2009 American photographer Anthony Suau has won the top prize in the World Press Photo competition with an image of a police officer searching a debris-strewn home to ensure the evicted residents have left after a mortgage foreclosure. The winning photo for Time magazine shows the officer, gun drawn, peering into an open doorway inside the house, which is filled with overturned furniture and boxes.
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Or, please mail a check or money order to CLG:
Citizens for Legitimate Government (CLG)
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Contributions to CLG are not tax deductible
Previous lead stories:
Thousands of US weapons astray in Afghanistan: auditors 12 Feb 2009 Thousands of US weapons, including assault rifles and grenade launchers, may be in Taliban or Al-Qaeda al-CIAduh hands in Afghanistan because of lax controls, congressional auditors warned on Thursday. The Pentagon has failed to track an estimated 87,000 weapons given to Afghan security forces, one-third of the 242,000 shipped by the US government between December 2004 and June 2008, the Government Accountability Office said. A 46-page report by the GAO, the non-partisan investigative arm of Congress, said there had been no monitoring of a further 135,000 weapons donated by NATO allies to the poorly paid and corruption-rife Afghan army and police.
69 computers missing from nuclear weapons lab --80 computers lost or stolen in 2008, 11 recovered. 12 Feb 2009 The Los Alamos nuclear weapons laboratory is missing 69 computers, but no classified information has been lost, spokesman Kevin Roark said. The watchdog group Project on Government Oversight released a memo dated Feb. 3 from the Energy Department's National Nuclear Security Administration that said 67 computers were missing.
Solicitor general nominee says 'enemy combatants' can be held without trial 11 Feb 2009 Harvard Law Dean Elena Kagan, President Obama's choice to represent his administration before the Supreme Court, told a key Republican senator Tuesday that she believed the government could hold suspected terrorists without trial as war prisoners. She echoed comments by Atty. Gen. Eric H. Holder Jr. during his confirmation hearing last month. Both agreed that the United States was at war with 'Al Qaeda' and suggested the law of war allows the government to capture and hold alleged terrorists without charges. If confirmed as U.S. solicitor general, Kagan will defend the administration's legal policy in the courts.
Those who wish to be added to the list can go here: http://www.legitgov.org/#subscribe_clg and add your name. Those who wish to unsubscribe can go here: http://lists.people-link.net/cgi-bin/mailman/listinfo/legitgov. If your email provider has marked this newsletter as spam, please mark it as 'not spam' and do not delete from a spam or 'junk' folder, as such actions trigger false spam complaints against the CLG. If you have any inquiries/issues with your subscription, please write: signup at legitgov dot org.
CLG Managing Editor: Lori Price. CLG Founder and Chair: Michael Rectenwald, Ph.D. Copyright © 2009, Citizens For Legitimate Government ® All rights reserved.
Having trouble viewing this email? http://www.informationclearinghouse.info/

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Information Clearing House Newsletter
News You Won't Find On CNN
February 14, 2009
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

I sincerely believe that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale. Jefferson, Thomas - 1743-1826 Third President of the USA

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It is no accident that banks resemble temples, preferably Greek, and that the supplicants who come to perform the rites of deposit and withdrawal instinctively lower their voices into the registers of awe. Even the most junior tellers acquire within weeks of their employment the officiousness of hierophants tending an eternal flame. I don t know how they become so quickly inducted into the presiding mysteries, or who instructs them in the finely articulated inflections of contempt for the laity, but somehow they learn to think of themselves as suppliers of the monetarized DNA that is the breath of life. - Lapham, Lewis H. -1935 American Essayist Editor

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Good bankers, like good tea, can only be appreciated when they are in hot water. - Hussein, Jaffar

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With a group of bankers I always had the feeling that success was measured by the extent one gave nothing away. - Longford, Lord

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Number Of Iraqis Slaughtered Since The U.S. Invaded Iraq "1,311,696"
www.justforeignpolicy.org/iraq/iraqdeaths.html

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Number of U.S. Military Personnel Sacrificed (Officially acknowledged) In America'sWar On Iraq 4,243
icasualties.org/oif/

=

The War And Occupation Of Iraq Costs
$596,629,206,506
See the cost in your community
nationalpriorities.org/index.php?option=com_wrapper&Itemid=182

=
Unredacted Documents Reveal Prisoners Tortured to Death

By Stephen C. Webster

The American Civil Liberties Union has released previously classified excerpts of a government report on harsh interrogation techniques used in Iraq, Afghanistan and Guantanamo Bay. These previously unreported pages detail repeated use of "abusive" behavior, even to the point of prisoner deaths.
http://informationclearinghouse.info/article21985.htm

===


Economic Crisis 'Top Threat to US'

By Al Jazeera

Dennis Blair said in a report to US congress on security on Thursday that the longer the economic recovery, the greater likelihood of "serious damage" to US strategic interests. Several countries in South America, Africa and the former Soviet Union were unprepared for economic crises and risked "regime-threatening stability" if the situation were to persist.
http://informationclearinghouse.info/article21976.htm

===

Worst Than The Great Depression?

' Worst Economic Collapse Ever'

Must Watch 11 Minute Video

In 2009 were going to see the worst economic collapse ever, the Greatest Depression, says Gerald Celente, U.S. trend forecaster. He believes its going to be very violent in the U.S., including there being a tax revolt.
http://informationclearinghouse.info/article21983.htm

===

Geithner's Debut: "Not Ready for Prime Time"

By Mike Whitney

Tuesday was Treasury Secretary Timothy Geithner's coming out party. He was supposed to outline Obama's Financial Stability Plan to the Senate Banking Committee. Wall Street was looking for clarity, but it didn't get it. Instead, they got 25 minutes of political posturing and blather. The markets went into freefall. By the end of the day, the Dow was down 382 points. It was a complete fiasco.
http://informationclearinghouse.info/article21978.htm

===

Who is Pulling Geithner's Strings?

By Cliff Kincaid

Treasury Secretary Timothy Geithner on Tuesday carefully read from a teleprompter and provided what his flack said was a "comprehensive" plan. It was not comprehensive in any way. It seemed so amateurish and shallow that the market dropped and commentators and senators were almost incredulous at the lack of detail.
http://informationclearinghouse.info/article21984.htm

===

Obama's voodoo economics

Deficit Nonchalance

By Paul Craig Roberts

The fiscal year 2009 federal budget deficit that Obama is inheriting, and adding to, will be ten times larger in absolute terms than Reagan's biggest and a much larger share of GDP in percentage terms. Yet, economists are sending up no alarms.
http://informationclearinghouse.info/article21977.htm

===

Obama, like Bush, is Throwing Public Money into a Black Hole

By Prof. Rodrigue Tremblay

Tuesday, February 10, may be the date when the U.S. economy officially entered into an economic depression. This was when President Obama's Treasury Secretary, Timothy Geithner, announced that the Obama administration was about to expand Bush's Secretary Paulson's $700-billion plan to rescue large U.S. banks from insolvency.
http://informationclearinghouse.info/article21974.htm

===

Obama Will Need All of His 'Out-of-The-Box' Thinking to Tackle Israel

By Anne Penketh

Never mind the global economic downturn: the Holy Land will be the real test of whether Barack Obama can actually walk on water.
http://informationclearinghouse.info/article21979.htm

===

Obama and Liberals:
A Counter-Productive Relationship

By Glenn Greenwald

During the 2008 election, Obama co-opted huge portions of the Left and its infrastructure so that their allegiance became devoted to him and not to any ideas. Many online political and "news" outlets -- including some liberal political blogs -- discovered that the most reliable way to massively increase traffic was to capitalize on the pro-Obama fervor by turning themselves into pro-Obama cheerleading squads.
http://informationclearinghouse.info/article21982.htm

===

Israel Lurches Into Fascism

By Ali Abunimah

As Palestinians once again become the majority in a country that has defied all attempts at partition, the only way to maintain Jewish control is through ever more brazen violence and repression of resistance (see Gaza). Whatever government emerges is certain to preside over more settlement-building, racial discrimination and escalating violence.
http://informationclearinghouse.info/article21980.htm

===

The PLO:
Why an Alternative and Why the Panic?

By Ramzy Baroud

When Hamas leader Khaled Mashaal declared before a cheering crowd in Doha, Qatar, on January 28, the need for a new leadership, his words generated panic amongst leaders of the West Bank-based Palestinian Authority as well as traditional Palestinian leadership elites stationed in various Arab capitals.
http://informationclearinghouse.info/article21975.htm





Listen And Listen Well

The Gaza Song

By Mirza Yawar Baig

This is a must watch 5 minute video.
http://www.informationclearinghouse.info/article21970.htm

===

Serve Republicans For Breakfast,
Don't Take Them To Dinner

By David Michael Green

Pogressives who believed Obama might be the second coming of Bobby Kennedy are rapidly being disabused of their fantasies.
http://informationclearinghouse.info/article21973.htm

===

In the Parents' Best Interests:

The Deep Politics of Hollywood

By Matthew Alford and Robbie Graham

Each of the dominant Hollywood studios ("the majors") is now a subsidiary of a much larger corporation, and therefore is not so much a separate or independent business, but rather just one of a great many sources of revenue in its parent company's wider financial empire.
http://informationclearinghouse.info/article21981.htm

===

Bomber kills 39 on Iraqi pilgrimage route :

The attack on the pilgrimage route in Iskandariya, 40 km (25 miles) south of Baghdad, came a day after a bomb killed eight in the Shi'ite holy city of Kerbala, to which hundreds of thousands if not millions were headed to mark Arbain.
http://uk.news.yahoo.com/22/20090213/tpl-uk-iraq-violence-aa3debf.html

==

Unidentified gunmen assassinate senior Defense Ministry official:

Unknown armed men attacked at eight o'clock in the morning the house of Brigadier Thamer Yosef, director of works at the Iraqi Defense Ministry, killing him along with his son before fleeing.
http://tinyurl.com/bdn4ts

===

How Halliburton ensured it had a very profitable war in Iraq:

The company spent $75 million digging a pipeline under the Tigris river at a location where the army later decided nobody should have tried. This was part of the $7 billion (no bid) contract to restore Iraq oil exports, which has been a disaster. Then there are the disposable canteen plates that cost the American taxpayer $28 each.
http://www.irishtimes.com/newspaper/opinion/2009/0213/1233867934795.html

===

Afghan conflict leaves 11 Taliban rebels, 1 foreign occupation force soldier dead in south:

A clash between Taliban insurgents and Afghan government troops erupted in southern Afghan province of Uruzgan on Thursday, leaving 11 insurgents and one service-member with the international troops dead, officials said on Friday.
http://news.xinhuanet.com/english/2009-02/13/content_10815128.htm

===

Aussie troops kill 5 Afghan kids:

"No Australians were injured in the engagement, but a number of people have been killed and wounded during this incident," its statement said. "Current reporting indicates that those killed include a suspected insurgent and, sadly, local nationals including five children killed, and two children and two adults injured."
http://tinyurl.com/bgtubb

===

Civilian casualties mar U.S. envoy's Kabul talks:

President Barack Obama's special representative to Afghanistan and Pakistan, Richard Holbrooke, met top ministers in Kabul on Friday, two days after Taliban attacks in the city demonstrated how far their insurgency was advancing.
http://www.iht.com/articles/2009/02/13/mideast/kabul.php

===

Karzai admits tensions with US:

Karzai also admitted that he has not heard from the US president since Barack Obama moved into the White House last month. "There is tension between us and the US government on issues of civilian casualties, arrests of Afghans, nightly raids on homes and the casualties they cause," Karzai said.
http://english.aljazeera.net/news/asia/2009/02/200921313169527798.html

===

Undfermining Karzai: U.S. intelligence chief warns Taliban gaining under weak Karzai rule:

The new director of national intelligence warned Thursday that Afghanistan's weak and corrupt government is failing to halt the spread of Taliban control and said that public support for the Taliban and local warlords was increasing
http://www.iht.com/articles/2009/02/12/america/intel.php?WT.mc_id=newsalert

===

US military loses 222,000 weapons sent to Afghanistan since 2001:

The report shows that the US military failed to keep proper records of 87,000 rifles, pistols, mortars and other weapons sent to Afghanistan between December 2004 and June 2008. It also failed to track 135,000 weapons donated to Afghan security by 21 other countries.

Breaking News and Commentary from Citizens For Legitimate Government
14 Feb 2009
http://www.legitgov.org/
All items are here:
http://www.legitgov.org/#breaking_news
US Department of Defence role in CIA's secret jails --Defence sought to delay the release of Guantanamo prisoners who were scheduled to be sent home by a month and a half in order to avoid bad press. 14 Feb 2009 Three human rights groups have obtained documents that confirm US Department of Defence involvement in the CIA's "ghost" detention program, and the existence of secret prisons at Bagram air base in Afghanistan and in Iraq. The documents obtained as part of a long-running legal battle using freedom-of-information laws were released by the Department of Defence to Amnesty International USA, the Centre for Constitutional Rights and the Centre for Human Rights and Global Justice last week.
US most wanted terrorist suspect in new extradition fight in Britain 13 Feb 2009 One of the US's most wanted terrorist suspects, Khalid al-Fawwaz, has launched a new attempt to fight extradition from Britain. At the High Court in London, lawyers for al-Fawwaz and Bary, said conditions at the Supermax prison in Florence, Colorado would breach article three of the Human Rights Act which ensures protection from torture and inhuman or degrading treatment or punishment. The prison is likely to play a key role when the detention facility at Guantanamo Bay is shut down.
Air Force lawyer fights to free Guantanamo inmate 13 Feb 2009 A U.S. military lawyer blitzed London this week, calling for the immediate release of her client, who allegedly was trained in an al Qaida [al-CIAduh] terrorist camp, from the U.S. military prison at Guantanamo Bay, Cuba. Claiming that Binyam Mohamed, a former British resident who's on a hunger strike at Guantanamo, will leave prison "insane" or "in a coffin" if he's not released soon, Air Force Reserve Lt. Col. Yvonne Bradley has made herself a thorn in the side of her military superiors, her commander-in-chief and other officials on both sides of the Atlantic.
Doctor flies to Guantanamo to check on condition of hunger striker 13 Feb 2009 A doctor will be flown to Guantanamo Bay to check on the condition of Binyam Mohamed, the torture victim who is on hunger strike there. In a statement, David Miliband, the Foreign Secretary, revealed that a team of officials will accompany the doctor to prepare for the Ethiopian-born former British resident's return to the UK. Britain is seeking to secure Mr Mohamed's release from Guantanamo Bay, where he is believed to be in a fragile condition after going on hunger strike in protest at the refusal of the US authorities to release documents said to show British security service involvement in his torture.
Blackwater Changes Its Name to Xe 14 Feb 2009 Blackwater Worldwide is abandoning the brand name that has been tarnished by its work terrorism in Iraq, settling on Xe (pronounced zee) as the new name for its family of two dozen businesses. Blackwater Lodge and Training Center, the subsidiary that conducts much of the company's overseas operations and domestic training, has been renamed U.S. Training Center Inc., the company said Friday. The company's rebranding effort grew more urgent after Blackwater guards in Baghdad were involved in a shooting episode in September 2007 that left 17 Iraqi civilians dead.
Cost of war in Iraq and Afghanistan rises to £4.5bn 13 Feb 2009 The cost of Britain's military operations in Iraq and Afghanistan have risen sharply to £4.5 billion over the last year, the Ministry of Defence said. The cost represents a 50 per cent increase on the previous year. The military mission in Afghanistan accounted for £2.6 billion, up from £1.5 billion last year. Despite the coming withdrawal from Iraq, the costs of operations there rose from £1.5 billion to £2 billion.
Suicide attack kills 40 in Iraq 14 Feb 2009 A female suicide bomber yesterday killed 40 people and wounded 81 in the worst of three consecutive days of attacks against Shiite worshippers in Iraq. The woman detonated explosives in a tent filled with women and children resting during a pilgrimage south of Baghdad, in an assault thought to be the deadliest this year.
Australian troops kill 5 Afghan children 14 Feb 2009 Australian special forces soldiers have killed five children in an attack on a compound in Afghanistan. The tragedy has triggered a strong warning from the Afghan Government that civilian deaths [war crimes] are playing into the hands of the Taliban.
Feinstein comment on U.S. drones likely to embarrass Pakistan The Predator planes that launch missile strikes against militants are based in Pakistan, the senator says. That suggests a much deeper relationship with the U.S. than Islamabad would like to admit. 13 Feb 2009 A senior U.S. lawmaker said Thursday that unmanned CIA Predator aircraft operating in Pakistan are flown from an air base in that country, a revelation likely to embarrass the Pakistani government and complicate its counter-terrorism collaboration with the United States. The disclosure by Sen. Dianne Feinstein (D-Calif.), chairwoman of the Senate Intelligence Committee, marked the first time a U.S. official had publicly commented on where the Predator aircraft patrolling Pakistan take off and land.
Pakistan: U.S. Missile Kills at Least Four 14 Feb 2009 Pakistani intelligence officials say a suspected U.S. missile strike by a drone aircraft has killed at least four people near the Afghan border. The officials say some people have also been wounded in Saturday's attack in the South Waziristan tribal region.
Israel mobilizes forces on Lebanon border 12 Feb 2009 Israel has reportedly mobilized its forces along its northern borders amid concerns that Tel Aviv may be planning to provoke Lebanon. The Lebanon Files news agency reported Thursday that Israeli military forces were seen heavily patrolling the northern border.
US intel confirms Iran not developing nukes 13 Feb 2009 The new chief of US intelligence has confirmed the findings of a 2007 intelligence report that Iran has no nuclear weapons program. Dennis Blair told the Senate Intelligence Committee that his organization has assessed that Tehran does not have nuclear weapons design and weaponization work.
Poll: Most want inquiry into anti-terror tactics 11 Feb 2009 A USA TODAY/Gallup Poll finds majorities in favor of investigating some of the thorniest unfinished business from the Bush regime: Whether its tactics in the "war on [of] terror" broke the law. Close to two-thirds of those surveyed said there should be investigations into allegations that the Bush team used torture to interrogate terrorism suspects and its program of wiretapping U.S. citizens without getting warrants. Almost four in 10 favor criminal investigations and about a quarter want investigations without criminal charges.
Mega barf alert! Homeland Security TV: Be Very Afraid By Ken Silverstein 11 Feb 2009 This is new to me: the Homeland Security Television Channel, "the world's first online, on-demand television network dedicated to homeland security and global development." ...[T]he editorial board includes Tom Ridge, the former head of the Department of Homeland Security and CEO of Ridge Global of (one of the channel's sponsors); Rear Admiral David Stone, the former assistant secretary of Homeland Security for the Transportation Security Administration and CEO of the Alacrity Homeland Group; and the savior of New Orleans, former FEMA chief Michael Brown.
Secret files reveal NIU killer's past 13 Feb 2009 A former student who killed five people at Northern Illinois University last Valentine's Day had been 'drummed out' of the Army for hiding his psychiatric history and expressed admiration for famous murderers, CNN has learned... Steven Kazmierczak spent three years at Thresholds, a psychiatric center in Chicago, according to psychiatric records in the files. He enlisted in the Army in September 2001 but was discharged the following February for lying on his application about his mental illness, Army records state. [See: NIU Shooting 'Oddities'.]
9/11 widow killed in NY plane crash --Eckert was co-chair of activist group 'Voices of September 11th' 13 Feb 2009 One of the victims of the Buffalo plane crash was the widow of a man who died in the September 11 attacks, according to reports. Beverly Eckert was flying to the city for a celebration of what would have been her husband Sean Rooney's 58th birthday. Ms Eckert became co-chairwoman of the group Voices of September 11th.
Sept. 11 Widow Killed in Buffalo Plane Crash --Sept. 11 widow, activist killed in plane crash 13 Feb 2009 One of the victims of the Buffalo commuter plane crash, Beverly Eckert, was a Sept. 11 widow who put her never-ending grief to good use to make the country safer. A week before her death, Eckert met with President Obama at the White House as part of a group of 9/11 families and relatives of those killed in the bombing of the USS Cole... She became part of a small group of Sept. 11 widows, mothers, and children who became amateur lobbyists, ultimately forcing lawmakers in 2004 to pass sweeping reforms of the U.S. intelligence apparatus.
Crashed commuter plane was new, had good record 13 Feb 2009 A Pinnacle airlines official says the commuter plane that crashed near Buffalo, N.Y., was new and had a clean safety record, leaving investigators few immediate clues about why it suddenly plunged into a house minutes before its planned landing, killing 50 people. The aircraft crashed Thursday night about five miles from the runway, near the point where a pilot would begin setting the plane up for landing. Skies were foggy and winds were 17 mph, but there was no indication of anything out of the ordinary and no mayday call, according to a recording of air traffic control radio messages captured by the Web site LiveATC.net.
Records show Colgan flights had been fatality free 13 Feb 2009 Colgan Air, the operator of the Continental Connection turboprop plane that crashed in upstate New York on Thursday, has been flying for Continental Airlines since 1997 and operates propeller-driven planes out of the carrier's hubs in Newark and Houston. In Colgan's 18-year history, according to National Transportation Safety Board records, Colgan had just one minor injury aboard a passenger flight...
Flight 3407 Plummeted Straight Down, Killing 50 13 Feb 2009 In the minutes before a turboprop plane plunged to the earth killing all 49 people aboard and one person on the ground, the pilot and crew were recorded discussing "significant ice buildup" on the plane's windshield and the leading edge of the wings, federal investigators said today. The black boxes recovered from the burning remains of Continental Express Flight 3407 also indicated that the de-icing button in the cockpit had been in the "on" position. Shortly after that conversation, Capt. Marvin Renslow deployed the plane's landing gear and wing flaps to slow down the plane in preparation for landing.
Flight 3407's Last Audio: No Mayday Heard Before Buffalo Plane Crash --Audio of the Last Conversation With Co-Pilot Seemed Calm, Then Went Silent 13 Feb 2009 The last conversation between the co-pilot of Continental Express flight 3407 and air traffic control sounded perfectly calm moments before the plane crashed into a suburban home near Buffalo, N.Y., late Thursday night, killing 50. There was no Mayday call before flight 3407, operated by Colgan Air, nose-dived at 10:25 p.m, killing all 49 people on board and one on the ground.
50 killed in NY plane crash; 2 Israelis suspected onboard --Foreign Ministry inquires on whereabouts of two Israeli nationals suspected to have been on flight that crashed in Buffalo, leaving all passengers dead. Continental Airlines says no knowledge of Israelis aboard flight 13 Feb 2009 Foreign Ministry sources following the plane crash in Buffalo, New York, which left 50 people dead, expressed concerns on Friday for the lives of two Israeli citizens who may have been onboard the aircraft.
Financial Crisis Called Top Security Threat to U.S. 13 Feb 2009 Director of National Intelligence Dennis C. Blair told Congress yesterday that instability in countries around the world caused by the current global economic crisis [the Bush Depression], rather than terrorism, is the primary near-term security threat to the United States. Blair also raised the specter of the "high levels of violent extremism" in the turmoil of the 1920s and 1930s along with "regime-threatening instability" [Hope springs eternal!] if the economic crisis persists over a one-to-two-year period.
US intelligence chief: World capitalist crisis poses greatest threat By Bill Van Auken 14 Feb 2009 In testimony before the Senate Committee on Intelligence Thursday, Washington's new director of national intelligence, Dennis Blair, warned that the deepening world capitalist crisis posed the paramount threat to US national security and warned that its continuation could trigger a return to the "violent extremism" of the 1920s and 1930s.
US Senate passes $787 bln stimulus, sends to Obama 13 Feb 2009 The U.S. Senate on Friday approved $787 billion in spending and tax cuts to boost the ailing economy, sending the emergency stimulus legislation to President Barack Obama, who is expected to sign it into law. The Senate voted 60-38 for the compromise bill on the same day the House of Representatives also passed it.
House passes $787B stimulus --Senate expected to vote on Friday evening. 13 Feb 2009 In a 246 to 183 vote largely along party lines, the House of Representatives on Friday passed a $787.2 billion economic recovery package that was drawn up, amended and negotiated in record time.
Regulators Close Banks in Nebraska, Florida 13 Feb 2009 Regulators on Friday closed Sherman County Bank in Nebraska and Riverside Bank of the Gulf Coast in Florida, marking 11 failures this year of federally insured institutions. The Federal Deposit Insurance Corp. was appointed receiver of the banks. Sherman County Bank, located in Loup City, Neb., had $129.8 million in assets and $85.1 million in deposits as of Feb. 12. Cape Coral, Fla.-based Riverside Bank had assets of $539 million and deposits of $424 million as of Dec. 31.
VA clinic warns of possible contaminant exposure 13 Feb 2009 Thousands of patients at a Veterans Administration clinic [Alvin C. York VA Medical Center in Murfreesboro] in Tennessee may have been exposed to the infectious body fluids of other patients when they had colonoscopies in recent years, and now VA medical facilities all over the U.S. are reviewing their own procedures.
Monsanto in Illinois: Homeland Security and USDA Plan Attacks Against Animals By Linn Cohen-Cole 13 Feb 2009 Below is a letter to livestock producers in Illinois asking them and others to contact the Governor's office to ask to be allowed to be present at a meeting between Homeland Security and the USDA which involves NAIS and "surge capacity" under Homeland Security to attack and seize and destroy - "depopulate" an area of - animals. This meeting is about what will be done TO THEM but they are shut out. Many of you already know about Monsanto's "rural cleansing" in southern Illinois of 200 - 400 farmers for using Steve Hixon as their seed cleaner. One is being sued for $400,000. In 2006, Monsanto made $160,000,000 in this Mafia-like extortion.
Peanut Company Files for Bankruptcy --Survey Finds One in Three People Are Not Confident in Food Safety System 13 Feb 2009 Capping an action-packed week in the investigation of a widespread salmonella outbreak, the peanut company at the heart of the examination has filed for bankruptcy. Peanut Corp. of America's Friday bankruptcy filing came after the list of recalled peanut products grew even longer Thursday night, when the company announced it was recalling all products shipped from a second of its plants.
In pictures: The World Press photography awards 14 Feb 2009 American photographer Anthony Suau has won the top prize in the World Press Photo competition with an image of a police officer searching a debris-strewn home to ensure the evicted residents have left after a mortgage foreclosure. The winning photo for Time magazine shows the officer, gun drawn, peering into an open doorway inside the house, which is filled with overturned furniture and boxes.
CLG needs your support.
http://www.legitgov.org/#contribute
Or, please mail a check or money order to CLG:
Citizens for Legitimate Government (CLG)
P.O. Box 1142
Bristol, CT 06011-1142
Contributions to CLG are not tax deductible
Previous lead stories: Thousands of US weapons astray in Afghanistan: auditors 12 Feb 2009 Thousands of US weapons, including assault rifles and grenade launchers, may be in Taliban or Al-Qaeda al-CIAduh hands in Afghanistan because of lax controls, congressional auditors warned on Thursday. The Pentagon has failed to track an estimated 87,000 weapons given to Afghan security forces, one-third of the 242,000 shipped by the US government between December 2004 and June 2008, the Government Accountability Office said. A 46-page report by the GAO, the non-partisan investigative arm of Congress, said there had been no monitoring of a further 135,000 weapons donated by NATO allies to the poorly paid and corruption-rife Afghan army and police.
69 computers missing from nuclear weapons lab --80 computers lost or stolen in 2008, 11 recovered. 12 Feb 2009 The Los Alamos nuclear weapons laboratory is missing 69 computers, but no classified information has been lost, spokesman Kevin Roark said. The watchdog group Project on Government Oversight released a memo dated Feb. 3 from the Energy Department's National Nuclear Security Administration that said 67 computers were missing.
Solicitor general nominee says 'enemy combatants' can be held without trial 11 Feb 2009 Harvard Law Dean Elena Kagan, President Obama's choice to represent his administration before the Supreme Court, told a key Republican senator Tuesday that she believed the government could hold suspected terrorists without trial as war prisoners. She echoed comments by Atty. Gen. Eric H. Holder Jr. during his confirmation hearing last month. Both agreed that the United States was at war with 'Al Qaeda' and suggested the law of war allows the government to capture and hold alleged terrorists without charges. If confirmed as U.S. solicitor general, Kagan will defend the administration's legal policy in the courts.
Those who wish to be added to the list can go here: http://www.legitgov.org/#subscribe_clg and add your name. Those who wish to unsubscribe can go here: http://lists.people-link.net/cgi-bin/mailman/listinfo/legitgov. If your email provider has marked this newsletter as spam, please mark it as 'not spam' and do not delete from a spam or 'junk' folder, as such actions trigger false spam complaints against the CLG. If you have any inquiries/issues with your subscription, please write: signup at legitgov dot org.