Happy Christmas 23 DEC 2011. ( I THINK I DID THAT)

Its been a year of discovery for me I continued a journey of thought and learning which started in Sweden 3 years ago now when I had been revolted by one of the Millibands referring to someone questioning the Global Warming Narrative as a denier. For me this moment sums up what is wrong with our modern politics the questions of ordinary people are seen as inconvenient and heretical just by dint of existing.

Anyway I plan to write before the New year or in the run up to New years eve in more depth of what I  plan to do next year with my discoveries and my Still optimistic outlook that a better world can be designed and made for all our Children and neighbors so with that message of hope and love Happy Christmas one and all from this small Tribe of Swedish Vikings.



Climate Gate, Getting deeper into the Detail (again I have no idea why I did not post this) MAy 29 2011

snap (72)

I have been looking through the climate Gate stuff on the web with a little help from Wikileaks and
the clues provided are allowing me to reference the sort of detail one needs to look at the drive to parameter setting in modelling. Taleb is very much into statistical bias built into first principles in the Money Markets
Just Google Anti-Fragility.

I have all of these coding files so I googled one of the main code references and happily have found that someone has already started piecing together the Jigsaw. My first task then is to read through their notes.
I am doing this blog Highlighting key passages.
The first here is to do with Cloud and sun date which seems to be an anomaly. I am noting it as I am aware of two important pieces of work at least on Solar Magnetism and sunspot activity and also solar rays and Cloud formation. Cloud formation and Solar activity are very important, that there should be an anomaly is


So, to me this identifies it as the program we cannot use any more because
the coefficients were lost. As it says in the gridding read_me:

Bear in mind that there is no working synthetic method for cloud, because Mark New
lost the coefficients file and never found it again (despite searching on tape
archives at UEA) and never recreated it. This hasn’t mattered too much, because
the synthetic cloud grids had not been discarded for 1901-95, and after 1995
sunshine data is used instead of cloud data anyway.

But, (Lord how many times have I used ‘however’ or ‘but’ in this file?!!), when
you look in the program you find that the coefficient files are called:
Just jumping to a more general site also reading I’m going to jump back to the other one of a quick scan of this more general overview.


this statement suggests a very analytical approach to me , and I like that.While I like Tim’s work and he has a good careful style, it is clear he is working inside constraints set by others “in the literature” and these include some degree of “synthetic” data… (But don’t worry if you lost some of the method, it’s only used some of the time anyway… in other years you can use other synthetic data…)

AGREED APPROACH for cloud (5 Oct 06).

For 1901 to 1995 – stay with published data. No clear way to replicate
process as undocumented.

For 1996 to 2002:
1. convert sun database to pseudo-cloud using the f77 programs;
2. anomalise wrt 96-00 with anomdtb.f;
3. grid using quick_interp_tdm.pro (which will use 6190 norms);
4. calculate (mean9600 – mean6190) for monthly grids, using the
published cru_ts_2.0 cloud data;
5. add to gridded data from step 3.

This should approximate the correction needed.

From another forum this stff has been looked at in great depth this is a comment that strikes me as very succinct. A part quote of a long COmment on a long article.

climate data-set nature purpose
CL (climatology) The average climate in the recent past. These are high-resolution grids. Allows spatial comparisons of environmental features; the dependency of certain features on climate may be assessed.
TS (time-series) Month-by-month variations in climate over the last century or so. These are high-resolution grids. Allows the comparison of variations in climate with variations in other phenomena.
SC (scenarios) A set of scenarios of possible climates in the future, using data from climate models. These are high-resolution grids. Allows environmental impact models to consider month-by-month changes in climate from the past, through the present, and into the future. Future uncertainties are represented through scenarios.
CY (countries) Country averages, based on aggregating grid cells together from the grids in CL, TS, or SC. Allows international comparisons to be made, in conjunction with socio-economic data such as GDP, population, land area, etc.
Variable abbreviations
label variable units
cld cloud cover percentage
dtr diurnal temperature range degrees Celsius
frs frost day frequency days
pre precipitation millimetres
rhm relative humidity percentage
ssh sunshine duration hours
tmp daily mean temperature degrees Celsius
vap vapour pressure hecta-Pascals
wet wet day frequency days
wnd wind speed metres per second
When scientists submt papers to proper academic journals they are supposed to write up enough methodology so that someone else can replicate their results. In theory at least. In practice in much of modern science this is not adhered to, but in theory – as Feynman explained in “Cargo-cult Science” – what you should do is the following:
Details that could throw doubt on your interpretation must be given, if you know them. You must do the best you can–if you know anything at all wrong, or possibly wrong–to explain it. If you make a theory, for example, and advertise it, or put it out, then you must also put down all the facts that disagree with it, as well as those that agree with it. There is also a more subtle problem. When you have put a lot of ideas together to make an elaborate theory, you want to make sure, when explaining what it fits, that those things it fits are not just the things that gave you the idea for the theory; but that the finished theory makes something else come out right, in addition.
In summary, the idea is to try to give all of the information to help others to judge the value of your contribution; not just the information that leads to judgment in one particular direction or another.
The easiest way to explain this idea is to contrast it, for example, with advertising. Last night I heard that Wesson oil doesn’t soak through food. Well, that’s true. It’s not dishonest; but the thing I’m talking about is not just a matter of not being dishonest, it’s a matter of scientific integrity, which is another level. The fact that should be added to that advertising statement is that no oils soak through food, if operated at a certain temperature. If operated at another temperature, they all will– including Wesson oil. So it’s the implication which has been conveyed, not the fact, which is true, and the difference is what we have to deal with.
We’ve learned from experience that the truth will come out. Other experimenters will repeat your experiment and find out whether you were wrong or right. Nature’s phenomena will agree or they’ll disagree with your theory. And, although you may gain some temporary fame and excitement, you will not gain a good reputation as a scientist if you haven’t tried to be very careful in this kind of work. And it’s this type of integrity, this kind of care not to fool yourself, that is missing to a large extent in much of the research in cargo cult science.
Above quote taken from here.\

skype: rogerglewis
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Hope in renewables. from 2011 no idea whuy I did not post it.

On renewable and sustainable the big lesson from this film is the one about the magnets
for this lesson we need to know about Lanthanides which are the 26th most common element on Earth although they are termed rare earth metals( I am interested in Magnets mainly from my study of Guitar Pickups and a field emerging in pick up technology called Hexaphonics.) Anyway, Lanthanides are essential to the processes of refining crude oil but also in the production of commercial magnets and a whole host of familiar products
If you wonder why lanthanides provide an interesting model for Economics think of Leverage. The isotopes created through lanthanides in processes make a little go a long way. Apparently china has 95% of the world’s most desirable lanthanides presently I am still checking this out as I am skeptical that such a common element should be so locally distributed instinctively what I understand about Half Lifes gives me a hunch that that proposition is true only if short-term profit and control of a supply is the objective rather than sustainability.?
If you have time do watch this film. I have not cried in a very long time. I can’t in fact remember the last time I did, but this Film made me cry. Probably from hope more than anything else.


I found this film from a link on the War on Want web-site unfortunately as there are so many societal pressures here in the west to take a tribal stance against certain philosophies found in other groupings we tend to listen to the language of those other groupings prejudicially we have an adverserial culture running through all levels of our administration and this stifles creative thought counterintuitively to the notion that creative thought is good it is actually discouraged by the prejudices that are encouraged and so back to motivations and measuring things even the notion of a Half-life is not certain and predictable it is not measurable during a period of transition so perspective becomes incredibly important in measurement of anything.


Who Ate All the Pies? more from 2011 #conquestofdough #whoresonbitch

I am on a number of internet mailing list including one from the US from the institute of Public Finance, there is a link to hteir web site in my Gravatar.


Anyway I got an e-mail today with a reading Group summary of a current study book and a summary of key points from Ellen Browns book Web of debt.

I have been chewing over the notions of Perceptions and realities the past few weeks and particularly the idea of Happiness and contentment. Perceptions it seems to be are groomed in us through modern marketing which has a very particular narrative even from the alternative side of the tracks take Quorn and Vegitarianism for instance.
We try to over complicate or overstate and we try to elevate and objectify to distinguish and almost deify we strive to become branded by belonging in an associsiation with the bling and and the branded and pristine and the soundbite slogan Colgate Ring of confidence ( Sleepers Awake ) Blackhorses gallopping into the Green Pastures of a confident future.

Being and Knowing and sharing and doing with each other and for each other is what provides us with our real contented times in life. Showing off the Show and Tell mentality of the corporate Branded this brand of soap is the panacea of all your ills, see what a posh box it comes in. The Value added is in the Packaging but there is no intrinsic value in the Packaging the Brand is the most elevated form of this kind of emperors new clothes economics.

And So to Money, what is it, we all think we know what it is and we all think we think we all think the same thing about what it is , its a silly question itś obvious isn’t it. Well collectively we are all wrong in our perception of what money is and what function it was invented to perform as a service to our commerce. Remember that History is always written by the Victors at least at first. Money should allow for the creation of credit to facilitate the exchange of goods over time the creation of and trading of debt as a commodity is a quite different thing and to tie the money Supply and creation of money to the creation of debt by private Banks is a particularly stupid thing for a society to do and yet that is what we have allowed to happen again. Its happened lots of times before and had to be reformed 2007 was am’nother time when it should have been reformed but those two puffed up egos Blair and Brown and their cronies are simply not of the Stature of great figures in history who truly understood the nature of the Political economy of nations and the natural choice was lost to us as a society, the opportunity remains to make necessary reforms reading groups on the areas set out in this e-mail I recieved should assist us in our collective goal of prosperity for all.

Here is a schedule we can follow for our second book, Agenda for a New
> Economy– from Phantom Wealth to Real Wealth (be sure to get the 2nd
> Edition), by David C. Korten.
> Van Jones says, “Korten turns conventional economic thinking upside down and
> inside out.  This book reveals what is really going on in the U.S. and
> global economy–and what can and should be done about it.”
> Author of Confession of an Economic Hit Man, John Perkins, says the book
> “outlines the real cause of– and solutions to– the current economic
> crisis.”
> We began our study group with The Web of Debt by Ellen Brown, see key points
> below.
> Results from our reading may include writing letters to the editor that
> educate our fellow citizens, and supporting the creation of a California
> state bank.
> We meet on Wednesday evenings
> 7:30 p.m. to 8:30 (or 9)
> Village Green Community Room
> 350 Robin Street (at 3rd Street West, south of Pharmaca)
> July 27 —  The Case for a New  Economy
>       Chapter 2, The Sport of Money Making
>       Chapter 3, A Real-Market Alternative
> August 3 —  The Case for Replacing Wall Street
>     Chapter 4, More Thank Tinkering at the Margins
>     Chapter 5, What Wall Street Really Wants
> August 10 — Replacing Wall Street cont.
>      Chapter 6, Buccaneers and Privateers
>      Chapter 7, The High Cost of Phantom Wealth
> For more information, contact Lauren at 939-9999 or Lauren.Sonoma@gmail.com
> A dollar lent at 6 percent interest, compounded annually, becomes 10 dollars
> in 40 years.  That means that if the money supply were 100 percent gold, and
> if bankers lent out 10 percent of it at 6 percent interest compounded
> annually (continually rolling over principal and interest into new loans),
> in 40 years the bankers would own all the gold. To avoid that result, either
> the money supply needs to be able to expand, which means allowing fiat money
> [such as Abraham Lincoln’s Greenbacks], or interest needs to be banned as it
> was in the Middle Ages.
> — Ch. 37 of Web of Debt
> http://webofdebt.wordpress.com/chapter-37-goldbugs-and-greenbackers-debate/
> ==============================

> 4 articles of interest:
> http://open.salon.com/blog/libbyliberalnyc/2011/02/21/can_kucinich_drive_a_stake_thru_the_zombie_heart_of_the_fed
> February 21, 2011
> Can Kucinich Drive a Stake thru the Zombie Heart of the Fed?
> Kucinich explains http://kucinich.house.gov/UploadedFiles/NEED_ACT.pdf:
> Banks pyramided their value by spending money into existence, greatly
> inflating the value of bank holdings, inflating the value of their asset
> bases, enticing unknowing investors to participate in financing schemes like
> the bundling of subprime mortgages, and ultimately bringing undercapitalized
> banks and the entire financial system to the edge of ruin, creating
> circumstances where the taxpayers of  the United States were called upon to
> save the banks from their own imprudent money-issuing practices, misspending
> and mis-investments. The banks’ ability to create money out of nothing
> ultimately became the taxpayers’ liability, and raises a fundamental
> question about a practice of money creation which threatens the wealth of
> the American people.
> Robert Malin wrote: “Rather than paying rent for our currency we could use
> the [freed up] funds to invest in technology, education and the general well
> being of the country providing the basis for a safe and sustainable future.”
> Section 24 of the bill:  Reclaiming the power of the Federal Government to
> create money, and to spend or lend money into circulation as needed,
> eliminates the need to treat money as a Federal liability or to pay interest
> charges on the Nation’s money supply to financial institutions; it also
> renders unnecessary the undue influence of private financial institutions
> over public policy.
> ==============================================
> http://thedailybell.com/printerVersion.cfm?id=1684
> Ellen Brown’s concise description of our flawed financial system:
> Contrary to popular belief, banks do not lend their own money or their
> depositors’ money; they create new money on their books every time they make
> a loan.
> I think lending is a much more natural and efficient way to get new money
> into the money supply than to have an independent body trying to dictate
> what the economy needs. But private banking institutions have proven they
> cannot be trusted with this powerful tool. Except for coins, which are a
> very marginal part of the money supply, all money today is just credit – the
> credit of the people. This function should be a public utility, administered
> through publicly-owned banks.
> The power to create money has been usurped by a private international
> banking cartel, which issues our money as debt and lends it back to us at
> interest.
> The cartel makes it appear that governments are creating our money, and
> governments get blamed when things go wrong; but they are actually just
> pawns of the cartel.  We the people can get back our government and our
> republic only by reclaiming the power to create our own money.  We can use
> the same credit system that private banks use, but administered as a public
> utility, monitored and overseen by public servants on the model of libraries
> and courts.  To be a sustainable system, profits need to be returned to the
> community rather than siphoned off into private coffers.
> The flip side of debt is credit, which is a very good thing.  Inventing
> credit is probably the most innovative thing bankers ever did. But because
> the Italian bankers who first came up with that scheme were on a gold-based
> system, they had to do it essentially by cheating, pretending to have more
> money than they actually had.  There would be periodic runs on the banks and
> the system would collapse.  A public banking system would acknowledge credit
> to be just a legal agreement to pay over time. Creditworthy borrowers would
> get credit.  Their access to credit needn’t be contingent on someone else’s
> agreement to give it up.  The system would be mathematically sustainable.
> Government is necessary to have a free market. Otherwise you have the law of
> the jungle, the exploitation of the weak by the strong.
> Government provides: National highway systems, bridges, waterways, dams,
> FDIC insurance, Medicare and social security, to name a few. If you doubt
> the latter two, consider what life was like in the depression of the 1890s,
> when there was no Medicare or social security, and people froze in the
> fields or starved. My grandmother, for whom I was named, died in Detroit
> during the Great Depression at age 42, trying to self-abort her eighth
> child, at a time when my grandfather was an unemployed auto worker and they
> could barely feed the other seven. My father was the oldest child and
> supported the family on a paper route. He never really recovered from that
> traumatic period. I suspect he is hovering about and prodding me on.
> Government sets the rules and provides a protective umbrella under which
> individual human endeavor can bear fruit.
> [The Tea Party opposes this role for government.]  Dr. North said in an
> email that I was a threat to the Tea Party movement, that his intent was to
> destroy me, and that there would be no compromise.
> The Pennsylvania colonial bank, America’s first publicly-owned bank, is an
> excellent model.  The bank was established by the Quakers, who came from
> England.  Franklin saw how well it worked and wrote about it in glowing
> terms.
> ===============================================
> http://www.commerce.nd.gov/news/detail.asp?newsID=644
> The Bank of North Dakota Is Thriving During Downturn
> AssociatedPress.com, Posted on 2/16/2010
> The Bank of North Dakota serves as an economic development agency and
> “banker’s bank” that lessens the loan risks of private banks and helps them
> finance larger projects. It offers cheap loans to farmers, students and
> businesses. The bank had almost $4 billion in assets and a $2.67 billion
> loan portfolio at the end of last year, according to its most recent
> quarterly financial report. It made $58.1 million in profits in 2009,
> setting a record for the sixth straight year. During the last decade, the
> bank funneled almost $300 million in profits to North Dakota’s treasury.
> The bank has the advantage of being the repository for most state funds,
> which can be used for loans and occasional relief for private banks that
> need a jolt of cash during sluggish credit markets. “We think of ourselves
> as kind of a little mini-Federal Reserve,” Hardmeyer said. The state earns
> roughly 0.25 percent less interest than state agencies would get from a
> commercial institution. The bank also pays no state or federal taxes and has
> no deposit insurance; North Dakota taxpayers are on the hook for any losses.
> ==========================================
> http://www.chrismartenson.com/forum/national-debt-money-supply/42738
> National Bank Act of 1863
> “From this point on the entire US money supply would be created out of debt
> by bankers buying US government bonds and issuing them from reserves for
> bank notes…In numerous years following the [Civil] war, the Federal
> Government ran a heavy surplus. It could not (however) pay off its debt,
> retire its securities, because to do so meant there would be no bonds to
> back the national bank notes. To pay off the debt was to destroy the money
> supply.”  – John Kenneth Galbraith
> After the National Bank Act of 1863 took effect, the international bank
> cartel made the national debt the basis of our money supply.  Lincoln won
> the Civil War but lost the nation’s financial sovereignty.  Later, Secretary
> of the Treasury Salmon P. Chase said “My agency in promoting the passage of
> the National Banking Act was the greatest financial mistake in my life. It
> has built up a monopoly which affects every interest in the country.”
> ===================================================
> Excerpts from Web of Debt:
> But the real shortage, as Benjamin Franklin explained to his English
> listeners in the eighteenth century, is in the medium of exchange.  If
> sufficient money could be made available to develop alternative sources of
> energy, alternative means of extracting water from the environment, and more
> efficient ways of growing food, there could be abundance for all.  The
> notion that the government could simply print the money it needs is
> considered unrealistically utopian and inflationary; yet banks create money
> all the time.  The chief reason the U.S. government can’t do it is that a
> private banking cartel already has a monopoly on the practice. p.341 of Web
> of Dept
> A dollar accruing interest at 5 percent, compounded annually, becomes two
> dollars in about 14 years.  At that rate, banks siphon off as much in
> interest every 14 years as there was money in the entire world 14 years
> earlier.  The real cause of global scarcity:  somebody is paying interest on
> most of the money in the world all of the time.  p.342 of Web of Debt
> =======================================
> http://www.thedailybell.com/printerVersion.cfm?id=1635
> Stephen Zarlenga has been toiling arduously in the sovereign money pits,
> convinced, like Ellen Brown, that if the US government itself prints
> fiat-money that the problems of the day will gradually fade and prosperity
> will reign once more. The Kucinich bill calls for the Treasury to take over
> the functions of the Federal Reserve and basically issue debt-free money.
> In an email sent out on the 18th of December, Zarlenga celebrates [the
> Kucinich bill] NEED as follows: “While the bill focuses on our unemployment
> crisis, the remedy proposed contains all the essential monetary measures
> being proposed by the American Monetary Institute in the American Monetary
> Act. These are what decades of research and centuries of experience have
> shown to be necessary to end the economic crisis in a just and sustainable
> way, and place the U.S. money system under our constitutional checks and
> balances. Yes it can be done!”
> ———————–
> Lauren Ayers
> 707  939-9999

A knave; a rascal; an eater of broken meats

When one reaches a certain age one removes the rose coloured spectacles much more often, becomes cynical with a hue of Grey casting a drab grubiness to surface appearances of fleeting shininess. The planned obsolecence of innocent acceptance takes a hold or perhaps it can’t be conditioned out of all of us, for some of the time at least.
One finds oneself considering committing to memory act 2 scene 2 of King Lear.

Oswald: Why dost thou use me thus? I know thee not.
KentFellow, I know thee.
Oswald: What dost thou know me for?
Kent: A knave; a rascal; an eater of broken meats; a base, proud, shallow, beggarly, three-suited, hundred-pound, filthy, worsted-stocking knave; a lily-livered, action-taking whoreson, glass-gazing, superserviceable, finical rogue; one-trunk-inheriting slave; one that wouldst be a bawd, in way of good service, and art nothing but the composition of a knave, beggar, coward, pander, and the son and heir of a mongrel bitch: one whom I will beat into clamorous whining, if thou deniest the least syllable of thy addition.

  • Scene II

Screw Loose Change: David Chandler #conquestofdough #dialoguepalette

Screw Loose Change:    


David Chandler

This diatribe has been in my drafts for ages, I am searching dialogue and situations for my #NOVEL #CONQUESTOFDOUGH #conquestofdough so excuse me when I slap some more colour on my palette.

First scribbled May the 6th 2011. Came up for air 22nd March 2017.

Wow, I am so pleased we have real smart guys out there that can get to the bottom of these really hard things to understand. I would have liked to have seen a little more analysis perhaps even some mathematical proofs that the physics of Freefall or Newton´s first law of motion doesn’t apply to Office buildings which have aircraft hijacked by Moslem Terrorists flown into them. But I guess this guy is really busy writing on all the blogs that make preposterous claims on all manner of other things like Economic cycles are a purely Natural phenomena over which the Banks have no control and that mass advertising for everything including our political choices is in no way tainted by any sort of exaggeration and the playing field is completely level before God. The climate Change Flat Earther denialist scum bags they really get me too so I am sure we will find this scourge of the purveyors of denialism very busy in those areas too, Flouride in Water Thalidomide Nuclear Power Stations they are an industry that has thought of everything, they´re safe and really should be completely unregulated and there is no point on checking up on them either, BP and Shell are really cool too, ask anyone living in the Gulf of Mexico, but we shouldn’t ever trust Russians and Japanese for obvious reasons. Right now we consider it, wow this guy´s really busy. I’m not surprised the 9/11 thing really makes him angry because let´s think, what else is there?

There’s ; Palestine, The Kurds, Bhopal, more famines than you can shake an M16 at, Oklahoma, Columbine, Wako, Dr David Kelly anyone remember the Iraqi Super Gun of and WMD’s what a bunch of fantasists they were ( Oh wait was that Us I’m not quite sure still the Great Leader can help us with that too I’m sure. Some people obviously just are so off message, just not buying into the Narrative they can’t stay on the same page and see the truth in the statistics.
No pictures of Bin Laden absolutely right but of course people are still saying that The great Leader Mr Obama was perhaps too timid in absolutely not allowing any propaganda to reflect so badly on the otherwise wonderful work taking 10 years to track down the most wanted man in History what we have seen is that the task was quite the needle in the Hay Stack wasn’t it Sheesh some guys just don’t get it do they.

Well lets all be grateful for the warriors for truth and free speech able to provide the kind of in-depth balanced and thoughtful analysis that we have grown to expect and admire in our Free Press. Why the hell we don’t all just stick to the professionally produced and properly financed Internet Franchises with a serious Narrative and on message branding we can all only wonder. But the screw loose change Blogspot is there for all of us, a beacon of balance and reason shining a light of hope and truth and belief and knowledge into the lives of people who would take their I-pod out of their ears turn off the latest Justin Bieber or pop idol masterpiece ignore the wisdom of the Panel of Experts and listen to someone offering their own ideas. How could they possibly be sincere professional and even take themselves remotely seriously? Have they been published? this Grub-street nonsense really must stop. Get me out of this celebrity Jungle idol I know where I can get my truth like all good Mushrooms I’m remaining firmly in the Dark, remaining deeply grateful for the shit they so graciously and condescendingly feed me.

Memory Hole Series. Retrieved from the Internet Shredder. No1 James Kidney SEC.

I have mentioned before and blogged about the usefulness of the Internet Archive Way Back machine
and its Lazarus qualities


“This sickness will not end in death. No, it is for God’s glory so that God’s Son may be glorified through it.”


When old links to information that slides out of current web-sites and is, therefore harder to find and slips off search engines I have decided to re-blog instances in my own writing where this happens to reference links.

Many links on the Wikipedia article for Duncan Campbell do not work and much that is critical of the Establishment seems to go the way of this perhaps unintentional memory hole. I appoint myself as the Winston Smith Alter Ego, the Anti-Memory hole operative.

This first in the series is this link from Counterpunch which was in a dialogue I had with an American inside the beltway gentleman back in 2014.

You can still search within counterpunch and the article is still on their web site, of course, if links pointing back to it do not work how many people do the extra few clicks, that’s an inertia marketing psychology trick. People mostly do not persevere.



The subject was money in politics, revolving doors and all of that.


Prior Reports Indicate Administration’s Corruption to Be Widespread

Retiring White House Prosecutor Says the SEC Is Corrupt

Bloomberg News reported, on April 8th, that a Securities and Exchange Commission prosecuting attorney, James Kidney, said at his recent retirement party on March 27th, that his prosecutions of Goldman Sachs and other mega-banks had been squelched by top people at the agency, because they “were more focused on getting high-paying jobs after their government service than on bringing difficult cases.” He suggested that SEC officials knew that Wall Street would likely hire them after the SEC at much bigger pay than their government remuneration was, so long as the SEC wouldn’t prosecute those megabank executives on any criminal charges for helping to cause the mortgage-backed securities scams and resulting 2008 economic crash.
His “remarks drew applause from the crowd of about 70 people,” according to the Bloomberg report. This would indicate that other SEC prosecutors feel similarly squelched by their bosses.
Kidney’s speech said that his superiors did not “believe in afflicting the comfortable and powerful.”
Referring to the agency’s public-relations tactic of defending its prosecution-record by use of what he considered to be misleading statistics, Kidney said, “It’s a cancer” at the SEC.
Two recent studies have provided additional depth to Kidney’s assertions, by showing that Obama and his Administration had lied when they promised to prosecute Wall Street executives who had cheated outside investors, and deceived homebuyers, when creating and selling mortgage-backed securities for sale to investors throughout the world.
President Obama personally led in this lying.
On May 20, 2009, at the signing into law of both the Helping Families Save Their Homes Act and the Fraud Enforcement and Recovery Act, Obama said: “This bill nearly doubles the FBI’s mortgage and financial fraud program, allowing it to better target fraud in hard-hit areas. That’s why it provides the resources necessary for other law enforcement and federal agencies, from the Department of Justice to the SEC to the Secret Service, to pursue these criminals, bring them to justice, and protect hardworking Americans affected most by these crimes. It’s also why it expands DOJ’s authority to prosecute fraud that takes place in many of the private institutions not covered under current federal bank fraud criminal statutes — institutions where more than half of all subprime mortgages came from as recently as four years ago.”
Then, in the President’s 24 January 2012 State of the Union Address, he said: “Tonight, I’m asking my Attorney General to create a special unit of federal prosecutors and leading state attorneys general to expand our investigations into the abusive lending and packaging of risky mortgages that led to the housing crisis.  (Applause.)  This new unit will hold accountable those who broke the law, speed assistance to homeowners, and help turn the page on an era of recklessness that hurt so many Americans. Now, a return to the American values of fair play and shared responsibility will help protect our people and our economy.”
However, two years later, the Inspector General of the U.S. Department of Justice issued on 13 March 2014 its “Audit of the Department of Justice’s Efforts to Address Mortgage Fraud,” and reported that Obama’s promises to prosecute turned out to be just a lie. DOJ didn’t even try; and they lied even about their efforts. The IG found: “DOJ did not uniformly ensure that mortgage fraud was prioritized at a level commensurate with its public statements. For example, the Federal Bureau of Investigation (FBI) Criminal Investigative Division ranked mortgage fraud as the lowest criminal threat in its lowest crime category. Additionally, we found mortgage fraud to be a low priority, or not [even] listed as a priority, for the FBI Field Offices we visited.” Not just that, but, “Many Assistant United States Attorneys (AUSA) informed us about underreporting and misclassification of mortgage fraud cases.” This was important because, “Capturing such information would allow DOJ to … better evaluate its performance in targeting high-profile offenders.”
Privately, Obama had told Wall Street executives that he would protect them. On 27 March 2009, Obama assembled the top executives of the bailed-out financial firms in a secret meeting at the White House and he assured them that he would cover their backs; he promised “My administration is the only thing between you and the pitchforks”. It’s not on the White House website; it was leaked out, which is one of the reasons Obama hates leakers. What the DOJ’s IG indicated was, in effect, that Obama had kept his secret promise to them.
Here is the context in which he said that (from page 234 of Ron Suskind’s 2011 book, Confidence Men):
The CEOs went into their traditional stance. “It’s almost impossible to set caps [to their bonuses]; it’s never worked, and you lose your best people,” said one. “We’re competing for talent on an international market,” said another. Obama cut them off.
“Be careful how you make those statements, gentlemen. The public isn’t buying that,” he said. “My administration is the only thing between you and the pitchforks.”
It was an attention grabber, no doubt, especially that carefully chosen last word.
But then Obama’s flat tone turned to one of support, even sympathy. “You guys have an acute public relations problem that’s turning into a political problem,” he said. “And I want to help. But you need to show that you get that this is a crisis and that everyone has to make some sacrifices.” According to one of the participants, he then said, “I’m not out there to go after you. I’m protecting you. But if I’m going to shield you from public and congressional anger, you have to give me something to work with on these issues of compensation.”
No suggestions were forthcoming from the bankers on what they might offer, and the president didn’t seem to be championing any specific proposals. He had none: neither Geithner nor Summers believed compensation controls had any merit.
After a moment, the tension in the room seemed to lift: the bankers realized he was talking about voluntary limits on compensation until the storm of public anger passed. It would be for show.
He had been lying to the public, all along. Not only would he not prosecute the banksters, but he would treat them as if all they had was “an acute public relations problem that’s turning into a political problem.” And he thought that the people who wanted them prosecuted were like the KKK who had chased Blacks with pitchforks before lynching. According to the DOJ, their Financial Fraud Enforcement Task Force (FFETF) was “established by President Barack Obama in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.” But, according to the Department’s IG, it was all a fraud: a fraud that according to the DOJ itself had been going on since at least November 2009.
The IG’s report continued by pointing out the Attorney General’s lies, noting that on 9 October 2012, “the FFETF held a press conference to publicize the results of the initiative,” and:
“The Attorney General announced that the initiative resulted in 530 criminal defendants being charged, including 172 executives, in 285 criminal indictments or informations filed in federal courts throughout the United States during the previous 12 months. The Attorney General also announced that 110 federal civil cases were filed against over 150 defendants for losses totaling at least $37 million, and involving more than 15,000 victims. According to statements made at the press conference, these cases involved more than 73,000 homeowner victims and total losses estimated at more than $1 billion.
“Shortly after this press conference, we requested documentation that supported the statistics presented. … Over the following months, we repeatedly asked the Department about its efforts to correct the statistics. … Specifically, the number of criminal defendants charged as part of the initiative was 107, not 530 as originally reported; and the total estimated losses associated with true Distressed Homeowners cases were $95 million, 91 percent less than the $1 billion reported at the October 2012 press conference. …
“Despite being aware of the serious flaws in these statistics since at least November 2012, we found that the Department continued to cite them in mortgage fraud press releases. … According to DOJ officials, the data collected and publicly announced for an earlier FFETF mortgage fraud initiative – Operation Stolen Dreams – also may have contained similar errors.”
Basically, the IG’s report said that the Obama Administration had failed to enforce the Fraud Enforcement and Recovery Act of 2009. This bill had been passed overwhelmingly, 92-4 in the Senate, and 338-52 in the House. All of the votes against it came from Republicans. The law sent $165 million to the DOJ to catch the executive fraudsters who had brought down the U.S. economy, and it set up the Financial Crisis Inquiry Commission, and had been introduced and written by the liberal Democratic Senator Patrick Leahy. President Obama signed it on 20 May 2009. At that early stage in his Presidency, he couldn’t afford to display that he was far to the right of every congressional Democrat, so he signed it.
Already on 15 November 2011, Syracuse University’s TRAC Reports had headlined “Criminal Prosecutions for Financial Institution Fraud Continue to Fall,” and provided a chart showing that whereas such prosecutions had been running at a fairly steady rate until George W. Bush came into office in 2001, they immediately plunged during his Presidency and were continuing that decline under Obama, even after the biggest boom in alleged financial fraud cases since right before the Great Depression. And, then, on 24 September 2013, TRAC Reports bannered “Slump in FBI White Collar Crime Prosecutions,” and said that “prosecutions of white collar criminals recommended by the FBI are substantially down during the first ten months of Fiscal Year 2013.” This was especially so in the Wall Street area: “In the last year, the judicial District Court recording the largest projected drop in the rate of white collar crime prosecutions — 27.8 percent — was the Southern District of New York (Manhattan).”
Another recent report documents lying by the Administration regarding its promised program to force banks to compensate cheated homeowners for fraud in their mortgages, and sometimes even for evictions that were based on those frauds. The investigative journalist David Dayen headlined on 19 March 2014, “Just 83,000 Homeowners Get First-Lien Principal Reductions from National Mortgage Settlement, 90 Percent Less Than Promised.” He documented that, “the Secretary of Housing and Urban Development sold the settlement on a promise of helping 1 million homeowners, and the final number missed the cut by over 916,000. That … shows the essential dishonesty [Obama’s HUD Secretary Shaun] Donovan displayed in his PR push back in 2012. … We’re used to the Obama Administration falling far short of their goals for homeowner relief, whether because of a lack of interest or a desire to foam the runway for the banks or whatever. Even still, the level of duplicity is breathtaking.”