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* Who were the Israelis living next to Mohammed Atta? * What was in that Moving Van on the New Jersey shore? * Was the Mossad Tracking the 9/11 Hijackers in the US? * How did two hijackers end up on the Watch List weeks before 9/11?
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Exclusive to CounterPunch Newsletter Subscribers! WHAT DID ISRAEL KNOW IN ADVANCE OF THE SEPTEMBER 11 ATTACKS? * Those Celebrating "Movers" and Art Student Spies
* Who were the Israelis living next to Mohammed Atta?
* What was in that Moving Van on the New Jersey shore?
* Was the Mossad Tracking the 9/11 Hijackers in the US?
* How did two hijackers end up on the Watch List weeks before 9/11?At last, the answers. Read Christopher Ketcham's exclusive expose in CounterPunch special double-issue February newsletter. Plus, Cockburn and St. Clair on how this story was suppressed and ultimately found its home in CounterPunch. Get your copy today by subscribing online or calling 1-800-840-3683 Remember contributions to CounterPunch are tax-deductible. Click here to make a donation. If you find our site useful please: Subscribe Now
Get CounterPunch By Email for Only $35 a Year Landau at UC Santa Cruz
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Today's Stories February 21, 2007 Sharon Smith February 20, 2007 Sgt. Martin
Smith Werther Corporate Crime Reporter Carl G. Estabrook China Hand Joshua Frank Megan Boler John Feffer Daryll E. Ray Alan Gregory Website of the Day
February 19, 2007 Paul Craig
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Feburary 17 / 18, 2007 Alexander Cockburn Tao Ruspoli Gary Leupp Jeffrey St.
Clair Roger Morris Uri Avnery James Brooks Sen. Russell
Feingold Linn Washington, Jr. Michele Brand Fred Gardner Mitchel Cohen Mike Ferner David Swanson P. Sainath Mike Stark Missy Beattie Jonathan Franklin Website of the Weekend
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Patrick Cockburn Saul Landau Stephen Lendman Evelyn Pringle Michael Simmons Kevin Zeese Dave Lindorff Pete Shanks Peter Rost Lenni Brenner
/ Gilad Atzmon Website of the Day
February 14, 2007 Tao Ruspoli Dick J. Reavis Margaret Kimberly Christopher Brauchli Paul Craig
Roberts John Ross Michael F.
Brown Dave Lindorff J.L. Chestunut,
Jr. Don Fitz Michael Donnelly Dr. Susan Block Website of
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February 13, 2007 Uri Avnery Patrick Cockburn Ralph Nader Marjorie Cohn Col. Dan Smith Col. Douglas
MacGreagor Thomas Power Nicola Nasser David Swanson Columbia Coalition
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February 12, 2007 Patrick Cockburn Paul Craig
Roberts John Walsh Dr. John Carroll,
MD Greg Moses Nicole Colson Dave Lindorff Ray McGovern Doug Giebel David Swanson Website of the Day
February
10 /11, 2007 Alexander Cockburn Gabriel Kolko Patrick Cockburn Jeffrey St.
Clair Kevin Alexander Gray M. Shahid Alam Greg Moses Paul Craig
Roberts George Ciccariello-Maher Kevin Zeese Turner / Kim George Duke Walter Brasch Shepherd Bliss Missy Beattie Peter Harley Pat Wolff Poets' Basement Website of the Day
Conn Hallinan Gary Leupp Lee Sustar Nikolas Kozloff Newton Garver Yitzhak Laor Dave Lindorff David Swanson Website of the Day
February 8, 2007 John V. Walsh Marjorie Cohn Trish Schuh Ron Jacobs Laura Carlsen Ramzy Baroud Brenda Norrell Bryan Farrell Judith Scherr Website of
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February 7, 2007 Daniel Wolff Tao Ruspoli Tony Swindell Sharon Smith Ken Couesbouc Jeff Cohen Col. Dan Smith Tom Kerr Joshua Frank Adam Elkus Stephen Fleischman Website of
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February 6, 2007 Diana Johnstone Gregory Wilpert Norman Solomon Dave Lindorff William Blum Mike Ferner CP News Service Evelyn Pringle Christopher Brauchli Alan Cabal Website of the Day
Dave Zirin Uri Avnery Ron Jacobs Paul Craig Roberts Newton Garver Bruce Anderson Saul Landau Ralph Nader James T. Phillips Mike Whitney Kenneth Rexroth Website of the Day
Alexander Cockburn Tao Ruspoli Jeffrey St.
Clair Patrick Cockburn P. Sainath Sen. Russell Feingold Diane Christian Brian Cloughley Diana Barahona Timothy J. Freeman Conn Hallinan John Ross Greg Moses Missy Beattie Joshua Frank Evelyn Pringle Stephen Fleischman Muhammad Idrees Ahmad Poets' Basement Website of the Day
Chris Kutalik R. Gibson /
E. W. Ross Pam Martens John Feffer Daryll E. Ray Ronald Bruce
St. John Mitchel Cohen Website of
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Diane Farsetta Marjorie Cohn Mark Scaramella Ranni Amiri Christopher Ketcham Winston Warfield Corporate Crime Reporter Thomas P. Healy Website of the Dau
January 31, 2007 Patrick Cockburn Jean Bricmont Tao Ruspoli James T. Phillips William Johnson Tim Wilkinson Evelyn Pringle Joshua Frank Ramzy Baroud Mickey Z. Website of the Day
Werther Kathy Kelly Uri Avnery Franklin Spinney William S. Lind Pariah Mike Whitney Rev. William
E. Alberts Fran Shor Anthony Arnove Website of the Day
Nurit Peled-Elhanan Patrick Cockburn JoAnn Wypijewski Ron Jacobs Dave Lindorff Kevin Zeese Reza Fiyouzat Pat Williams Website of the Day
January 27 / 28, 2007 Diana Johnstone Eliza Ernshire Patrick Cockburn David Rosen Greg Moses Bernard Chazelle Tao Ruspoli Hermán
Uribe Ralph Nader Paul Craig
Roberts Fred Gardner Brian Cloughley James Abourezk John V. Whitbeck Seth Sandronsky Alan Cabal Pam Martens Website of
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Charlotte Laws Mike Ely /
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Patrick Cockburn John Ross Jeremy Scahill Frida Berrigan Paul Craig Roberts Jason Yossef
Ben-Meir Christopher Brauchli Holger W. Henke Dave Lindorff Julia Landau Website of the Day
January 24, 2007 Tao Ruspoli Paul Craig
Roberts Lt. Gen. William Odom Sharon Smith Brian M. Downing Heather Gray Ron Jacobs James Brooks Robert Day Website of
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Trish Schuh Robert Bryce
Stephen Soldz John Blair Gloria La Riva Joshua Frank Patrick Cockburn Ralph Nader Dave Lindorff Uri Avnery Website of the Day
January 22, 2007 Manuel Garcia,
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Roberts Norman Solomon Amira Hass Mike Whitney Ramzy Baroud John Walsh Website of
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January 20/21 2007 Alexander Cockburn
Gail Dines
Newton Garver
Gilad Atzmon
Seth Sandronksy
Raphaelle Bail
Jim Goodman Larry Portis
Website of
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Jonathan Cook
Glen Ford Dave Lindorff
Larry Portis
Website of
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Virginia Tilley
Michael Donnelly
B.R. Gowani
Larry Portis
Jason Hribal
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Franklin Spinney John Ross Susan George Paul Craig
Roberts Joshua Frank David Lindorff
Col. Sam Gardiner
Marjorie Cohn
Saul Landau
Ron Jacobs
Susan Block Ken Couesbouck Website of
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Roger Morris Paul Craig
Roberts Kathy Kelly William Blum Ralph Nader Saul Landau January 12 / 14, 2007 Patrick Cockburn David Rosen William S.
Lind Laith al-Saud Paul Craig
Roberts John Ross George Ciccariello-Maher Christopher Brauchli Robert Buzzanco Evelyn Pringle Peter Rost,
MD. Mike Whitney Yifat Susskind Saul Cohen Missy Beattie Stephen Lendman Website of
the Weekend
January 11, 2007 Ismael Hossein-Zadeh Paul Craig
Roberts Kathy Kelly Dave Lindorff Jeff Leys Richard W.
Behan Col. Douglas MacGregor Website of
the Day Speech of the Day
Peter Linebaugh Robert Fantina Patrick Cockburn Paul Craig Roberts Col. Dan Smith Ben Tripp Evelyn Pringle Ron Jacobs Mike Ferner Dave Zirin Website of
the Day Bootleg of the Day
R. T. Naylor Jonathan Cook Mike Ely and Linda Flores Joshua Frank Norman Solomon Sen. Russell
Feingold Joe Allen James T. Phillips Brian Concannon Leonard Peltier Website of the Day
January 8, 2007 Werther Jeff Leys Paul Craig Roberts Shulamit Aloni Dave Lindorff Sunsara Taylor Seth Sandronsky Dr. Susan Block Website of the Day
Alexander Cockburn Franklin C.
Spinney Paul Craig
Roberts Ralph Nader Walden Bello Marleen Martin Brian Cloughley Uri Avnery Saul Landau Ron Jacobs Joseph Nevins William S. Lind Gary Leupp Elisa Salasin George Ciccariello-Maher Beyond Chavistas and Anti-Chavistas: Deepening the Bolivarian Revolution Stefan Wray Michael Leonardi Richard Rhames Jeffrey St. Clair Barbara LaMorticella Website of the Weekend Song of the
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January 3, 2007 Kathy Kelly Paul Craig
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January 1, 2007 Patrick Cockburn Uri Avnery Joshua Frank
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February 21, 2007 Crashing to EarthThe Second Great DepressionBy MIKE WHITNEY
This week's data on the sagging real estate market leaves no doubt that the housing bubble is quickly crashing to earth and that hard times are on the way. "The slump in home prices from the end of 2005 to the end of 2006 was the biggest year over year drop since the National Association of Realtors started keeping track in 1982." (New York Times) The Commerce Dept announced that the construction of new homes fell in January by a whopping 14.3%. Prices fell in half of the nation's major markets and "existing home sales declined in 40 states". Arizona, Florida, California, and Virginia have seen precipitous drops in sales. The Commerce Department also reported that "the number of vacant homes increased by 34% in 2006 to 2.1 million at the end of the year, nearly double the long-term vacancy rate." (Marketwatch) The bottom line is that inventories are up, sales are down, profits are eroding, and the building industry is facing a steady downturn well into the foreseeable future. The ripple effects of the housing crash will be felt throughout the overall economy; shrinking GDP, slowing consumer spending and putting more workers in the growing unemployment lines. Congress is now looking into the shabby lending practices that shoehorned millions of people into homes that they clearly cannot afford. But their efforts will have no affect on the loans that are already in place. $1 trillion in ARMs (Adjustable Rate Mortgages) are due to reset in 2007 which guarantees that millions of over-leveraged homeowners will default on their mortgages putting pressure on the banks and sending the economy into a tailspin. We are at the beginning of a major shake-up and there's going to be a lot more blood on the tracks before things settle down. The banks and mortgage lenders are scrambling for creative ways to keep people in their homes but the subprime market is already teetering and foreclosures are on the rise. There's no doubt now, that Fed chairman Alan Greenspan's plan to pump zillions of dollars into the system via "low interest rates" has created the biggest monster-bubble of all time and set the stage for a deep economic retrenchment. Greenspan's inflationary policies were designed to expand the "wealth gap" and create greater economic polarization between the classes. By the time the housing bubble deflates, millions of working class Americans will be left to pay off loans that are considerably higher than the current value of their home. This will inevitably create deeper societal divisions and, very likely, a permanent underclass of mortgage-slaves. A shrewd economist and student of history like Greenspan knew exactly what the consequences of his low interest rates would be. The trap was set to lure in unsuspecting borrowers who felt they could augment their stagnant wages by joining the housing gold rush. It was a great way to mask a deteriorating economy by expanding personal debt. The meltdown in housing will soon be felt in the stock market which appears to be lagging the real estate market by about 6 months. Soon, reality will set in on Wall Street just as it has in the housing sector and the "loose money" that Greenspan generated with his mighty printing press will flee to foreign shores. It looks as though this may already be happening even though the stock market is still flying high. On Friday, the government reported that net capital inflows reversed from the requisite $70 billion to AN OUTFLOW OF $11 BILLION! The current account deficit (which includes the trade deficit) is running at roughly $800 billion per year, which means that the US must attract about $70 billion per month of foreign investment (US Treasuries or securities) to compensate for America's extravagant spending. When foreign investment falters, as it did in December, it puts downward pressure on the greenback to make up for the imbalance. Everbank's Chuck Butler put it like this: "Not only did the buying stop in December by foreigners in December, but the outflows were huge! Domestic investors increased their buying of long-term overseas securities from $37 billion to a record $46 billion. This is a classic illustration of 'lack of funding'. So, the question I asked the desk was 'Why isn't the euro skyrocketing?'" Why, indeed? Why would central banks hold onto their flaccid greenbacks when the foundation which keeps it propped up has been removed? The answer is complex but, in essence, the rest of the world has loaned the US a pair of crutches to bolster the wobbly dollar while they prepare for the eventual meltdown. China and Japan are currently hold over $1.7 trillion in US currency and US-based assets and can hardly afford to have the ground cut out from below the dollar. There are, however, limits to the "generosity of strangers" and foreign banks will undoubtedly be pressed to take more extreme measures as it becomes apparent that Team Bush plans to produce as much red ink as humanly possible. December's figures indicate that foreign investment is drying up and the world is no longer eager to purchase America's lavish debt. The only thing the Federal Reserve can do is raise interest rates to attract foreign capital or let the dollar fall in value. The problem, of course, is that if the Fed raises rates, the real estate market will collapse even faster which will strangle consumer spending and shrivel GDP. In other words, we are at the brink of two separate but related crises; an economic crisis and a currency crisis. That means that the unsuspecting American people are likely to be ground between the two mill-wheels of hyperinflation and shrinking growth. In real terms, the economy is already in recession. The growth numbers are regularly massaged by the Commerce Department to put a smiley face on an underperforming economy. Industrial output continues to flag (In January it was down by another .5%) while millions good paying factory jobs are being air-mailed to China where labor is a mere fraction of the cost in the USA. Also, automobile inventories are up while factory production is in freefall. In addition, new jobless claims soared to 357,000 in the week ending February 10. 44,000 more desperate workers have been given their pink slips so they can join the huddled masses in Bush's Weimar Dystopia. December's net capital inflows are a grim snapshot of the looming disaster ahead. As the housing bubble loses steam, maxxed-out American consumers will face increasing job losses and mounting debt. At the same time, foreign investment will move to more promising markets in Asia and Europe causing a steep rise in interest rates. This is bound to be a stunning blow to the banks which are low on reserves ($44 billion) but have generated $4.5 trillion in shaky mortgage debt in the last 6 years. It's all bad news. The global liquidity bubble is limping towards the reef and when it hits it'll send shock-waves through the global economic system. Is it any wonder why the foreign central banks are so skittish about dumping the dollar? No one really relishes the idea of a quick slide into a global recession followed by years of agonizing recovery. Maybe that's why Secretary of Treasury Hank Paulson has reassembled the Plunge Protection Team and installed a hotline to his Chinese counterpart so he can quickly respond to sudden gyrations in the stock market or a freefalling greenback; two of the calamities he could be facing in the very near future. Greenspan successfully piloted the nation into virtual insolvency. In fact, the parallels between our present situation and the period preceding the Great Depression are striking. Just as massive debt was accumulating in the market from the purchase of stocks "on margin", so too, mortgage debt between 2000 and 2006 soared from $4.8 trillion to $9.5 trillion. In both cases the "wealth effect" spawned a spending spree which looked like growth but was really the steady, insidious expansion of debt which generated economic activity. In both periods wages were either flat or declining and the gap between rich and working class was growing more extreme by the year. As Paul Alexander Gusmorino said in his article, "Main Causes of the Great Depression":
The same factors are at work today except that the speculation is in real estate rather than stocks. Just as in the 1920's the equity bubble was not created by wages keeping pace with productivity (the healthy formula for growth) but by the expansion of personal debt. Also, one could buy stocks without the money to purchase them, just as one can buy a $600,000 or $700,000 house today with zero-down and no monthly payment on the principle for years to come. The current account deficit ($800 billion) could also weigh heavily in any economic shake-up that may be forthcoming. Bob Chapman of The International Forecaster made this shocking calculation about America's out-of-control trade deficit:
Think about that; the US sucked up nearly 60% of ALL GLOBAL CREDIT in one year alone. That is truly astonishing. There are many similarities between the pre-Depression era and our own. Paul Alexander Gusmorino says:
The federal government also contributed to the growing gap between the rich and middle-class. Calvin Coolidge's (pro business) administration passed the Revenue Act of 1926, which reduced federal income and inheritance taxes dramatically(At the same time) the Supreme Court ruled minimum-wage legislation unconstitutional. The bottom three quarters of the population had an aggregate income of less than 45% of the combined national income; while the top 25% of the population took in more than 55% of the national income...Between 1925 and 1929 the total credit more than doubled from $1.38 billion to around $3 billion". (Just like now, the growing wage gap has spawned massive speculative bubbles as well as a steady up-tick in credit spending. Wage stagnation forces workers to seek other opportunities for getting ahead. When wages fail to keep pace with productivity then demand naturally decreases and business begins to flag. The only way to spur more buying is by easing interest rates or expanding personal credit, and that is when equity bubbles begin to appear. That's what happened to the stock market before 1929 as well as to the real estate market in 2007. The availability of credit has kept the housing market afloat but, ultimately, the result will be the same. On Monday October 21, 1929, the over-valued stock market began its downward plunge. It managed a brief mid-week comeback, but 7 days later on Black Tuesday it plummeted again; 16 million shares were dumped and there were no buyers. The game was over. Confidence evaporated overnight. People stopped buying on credit, the bubble-economy collapsed, and the mighty locomotive for growth, the American consumer, hobbled into the Great Depression. Tariffs were thrown up, foreigners stopped buying American goods; banks closed, business went bust, and unemployment skyrocketed. Tens years later the country was still reeling from the implosion. Now, 77 years later, Greenspan has led us sheep-like to the same precipice. The economic dilemma we're facing could have been avoided if the expansion of personal credit had been curtailed by prudent monetary policy at the Federal Reserve and if wealth was more evenly distributed as it was in the '60s and '70s. But that's not the case; so we're headed for hard times. Mike Whitney lives in Washington state. He can
be reached at: fergiewhitney@msn.com
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