Letter to MIT Professor and former IMF Chief Economist, Simon Johnson

Letter to MIT Professor and former IMF Chief Economist, Simon Johnson

Zahir Ebrahim | Project Humanbeingsfirst.org

March 17, 2010



To: sjohnson@mit.edu

Subject: My two comments on your blog Baseline Scenario

Date: Wed, Mar 17, 2010 at 9:49 AM PST



Dear Professor Simon Johnson,

Hello.

You were introduced to me by a fellow MIT alum (on the cc) with glowing recommendation as someone who is on “our” side. I visited your website Baseline Scenario yesterday, read only the two top articles, and left you a comment for each. I was sorely disappointed for all the omissions and mis-emphasis, which I did take the time to mention:

http://baselinescenario.com/2010/03/16/enron-and-merrill-greece-and-goldman/#comment-46827

http://baselinescenario.com/2010/03/16/a-whiff-of-repo-105/#comment-46860

This letter is just FYI – but I do hope that as an award winning “public intellectual”, you will take the time to read my comments and reply, carefully explaining the omissions. This announcement is most impressive: http://web.mit.edu/newsoffice/2009/johnson-award-1217.html . However, I will share with you a piece of general folk wisdom which often guides me in matters of political science: when empire's instruments give out awards to dissent chiefs, run like hell.

With Best wishes

Zahir Ebrahim

Project Humanbeingsfirst.org



References

Addendum-1 Zahir's Response to 'Enron and Merrill, Greece and Goldman' By Simon Johnson March 16, 2010

Hello.

Did big banks break the law during our recent global debt-fuelled boom? The usual answer is: no – they just took advantage of loopholes and captured regulators. The world’s biggest banks are widely supposed to be too sophisticated to be tripped up by the legal system.”

No – incorrect model of graft, but not for the followup question that peeks into the lacunae:

But is this really true?”

The banksters made laws, repealed laws, made statutes, legally enacted into Federal Acts outright abhorrence, etc.

The biggest theft was the theft of legislature which makes laws, the executive which approves them, and the judiciary which interprets them.

The modus operandi outlined in the above quote, in my view, may be true of Al-Capone’ish graft, but not for imperial graft which is all kept “legal” because the “sovereign” itself makes its own laws.

Here is a short Excerpt from the Introduction to Monetary Reform Bibliography:

Economics and Money aren’t supposed to be as abstruse as it is made out to be, and nor does it take a Ph.D. from M.I.T. to realize that one is being taken for a sodomized ride on the Capricorn of economics gibberish. It is the responsibility of every denizen of the world to understand how humanity is being herded into global debt-enslavement and a centrally managed world-government, baby-step at a time, by manufacturing deliberate crisis and then proposing the next baby-step as its solution or fait accompli. Each baby-step erodes away some aspect of national sovereignty. 911 helped setup the global police state as a proposed solution to ‘terrorism’ – a manufactured product – to create the sine qua non mechanisms for world-government. “World government could only be kept in being by force”, as Bertrand Russell had put it.

The latest financial crisis is designed to systematically create a central world-banking system, as a proposed solution to ‘bad loans’ – again a manufactured product – to be managed by a global banking cartel under legal sanction. “Give me control of a nation’s money supply, and I care not who makes its laws”, as the Rothschild banking scions boldly narrate in almost every generation. Today, the cumulative world debt is in uncountable trillions, and there is no nation on earth which is not beholden to some banking cartel, be it the WB-IMF tag team of economic mercenaries preying upon the resource-rich nations of Global South (see John Perkins), or the private central banks lending parasites doing the same to their richer brethren in the Global North (see Money as Debt).

On top of them both, sit the same handful of private banking families in their interlocking relationships, protected by their own hand-crafted instruments of commerce, trade-treaties, and their hand-picked political governance which creates for them the legal sanctions necessary for the entire global racket based on unpayable debt to flourish. Once a nation, like a person, can’t pay its debts, demand for the proverbial “pound of flesh” is as convincing as making an offer one can’t refuse.

In contrast to the Neanderthal gangster Al Capone, or Michael Corelone in the blockbuster movie ‘The Godfather’, who weren’t smart enough to change the laws of the land in favor of their criminal enterprises and therefore, the state’s policing apparatus could be relied upon to eventually take parasites like them down, these banksters connivingly write the very laws of the land in their favor. They own, or control through proxy, the media, the legislatures, the executives, the think-tanks, the foundations, all levers of power, good and bad loans, and discourse itself, in pretty much all major societies – from G7 to G20 (excepting to some extent BRIC, Venezuela, and Iran) – cleverly hiding their own role behind the scenes in constructing their global fiefdom.

That aspiration was unabashedly and boldly re-stated by bankster James Warburg in 1950 to the US Senate – the son of bankster Paul Warburg who not only founded the Council on Foreign Relations in 1921, but was the key architect of the Federal Reserve System under the clandestine auspices of Senator Nelson Aldrich at Jekyll Island in 1910 (see Jekyll Island) – “We shall have World Government, whether or not we like it. The only question is whether World Government will be achieved by conquest or consent.”

End Excerpt

Unless the law which gives all powers to the Federal Reserve System to coin the realm's money by enslaving the nation in perpetual debt, and to regulate the interest rate with which it controls the realm's, and the world’s, economy, to print money at will like monopoly play money, and to regulate its own constituting member banks (like the fox guarding the coups), is forthrightly addressed, no grand graft through boom-bust can either be understood, nor the boom-busts themselves understood, nor any effective antidote formulated because the systemic disease has been improperly diagnosed.

Oh well. I Thought this is obvious. The rest of the palpable obviousness may further be gleaned here:

http://print-humanbeingsfirst.blogspot.com/2008/10/monetary-reform-bibliography.html

and here:

http://print-humanbeingsfirst.blogspot.com/2008/10/monetary-reform-who-will-bell-thecat.html

Unless those [issues] are addressed first, discussing Lehman et. al. is focussing on the leaves of a tree while the forest burns in plainsight.

Zahir Ebrahim

Project Humanbeingsfirst.org

Response submitted to Simon Johnson's The Baseline Scenario Blog on Tuesday March 16, 2010

http://baselinescenario.com/2010/03/16/enron-and-merrill-greece-and-goldman/#comment-46827




Addendum-2 Zahir's Response to 'A Whiff of Repo 105' guest post by Jennifer S. Taub March 16, 2010

Hello.

I have long been suspicious of brand-name academe and big-name 'dissent'. To me, they often appear to be fabricated or controlled dissent, less interested in uncovering the fundamental truths of the matter which cause events, and more on debating their effects, and often with specious arguments. They often analyze causality quite dubiously.

For instance, witness this statement:

This practice, enabled by a 2005 legal change, directly destabilized the financial sector and led to the ultimate credit crisis of 2008.”

And what was the repealing of the Glass-Steagall Act?

Can learned financial managers and lauded economists for once try to look beyond the leaves and penetrate through to the core agendas of the forest – of which they are themselves, or have been at a time before, a core part of? There is no way in hell that I, as a plebeian, can know more about this than these experts. And yet – why do I appear to know more? Or am I just foolish enough to not be co-opted?

Why do you think this financial crisis was precipitated? For instance, take a look at this CFR simulation from the year 2000 which anticipated it:

http://cfr.org/project/247/project_on_financial_vulnerabilities_and_foreign_policy.html

and I first learnt of it here:

http://larouchepub.com/other/2000/2729_cfr.html

Not being a fan of anyone, least of all Larouche pubs, I deconstructed even that partial attempt at truth-revealing as far back at 2000 - which had put the cart and the horse in the wrong order – here in 2008:

http://pressreleases-humanbeingsfirst.blogspot.com/2008/10/pr-resp-wmr-fema-martiallaw-oct092008.html

Similarly, other piece-meal baby-steps are being achieved through the combination of these psy-ops and manufactured crises – each of which brings the world a step closer to the endgame! Many of these were already simulated 8 years ago, in the year 2000, as disclosed in this report by Richard Freeman, dated July 28, 2000, and titled: Exposed! CFR Bankers Plan for Financial Crash. In that report too, its author has mixed up the cart and the horse. It is strange that this article presents the secretive CFR simulations of the global financial collapse, as if the economic downturn wasn't in fact orchestrated by the banksters for the devious purpose of deliberate crisis creation.”

And here is what co-alum Dr. Ben Bernanke himself admitted in 2002, for the role of the Federal Reserve in causing the First Great Depression:

Begin Excerpt:

As a personal aside, I note that I first read A Monetary History of the United States (Friedman and Schwartz, 1963) early in my graduate school years at M.I.T. I was hooked, and I have been a student of monetary economics and economic history ever since.

As everyone here knows, in their Monetary History Friedman and Schwartz made the case that the economic collapse of 1929-33 was the product of the nation's monetary mechanism gone wrong. Contradicting the received wisdom at the time that they wrote, which held that money was a passive player in the events of the 1930s, Friedman and Schwartz argued that "the contraction is in fact a tragic testimonial to the importance of monetary forces [p. 300; all page references refer to Friedman and Schwartz, 1963]. ...

Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again.”

end excerpt

And yet, in 2009 he publicly said the following to CBS:

http://youtube.com/watch?v=hYVp-UFzmXw



and, in the most remarkable display of chutzpah, the Federal Reserve under his stewardship has continued on with the exact same policies of squelching credit availability despite the trillions of dollars of public's bailout to the banksters while forcing abject austerity upon the poor public using the very same modus operandi of the Federal Reserve that Bernanke had so celebratorilly sought his abject mea culpa for just 6 years earlier, on economist Milton Friedman's birthday bash while celebrating his Nobel prize winning deconstruction of the first Great Depression. This is what Milton Friedman and Anna Schwartz had concluded in 1963:

Begin Excerpt

The stock of money, prices and output was decidedly more unstable after the establishment of the Reserve System than before. The most dramatic period of instability in output was, of course, the period between the two wars, which includes the severe [monetary] contractions of 1920-21, 1929-33, and 1937-38. No other 20-year period in American history contains as many as three such severe contractions”

This evidence persuades me that at least a third of the price rise during and just after World War 1 is attributable to the establishment of the Federal Reserve System ... and the severity of each of the major contractions - 1920-21, 1929-33, and 1937-38 – is directly attributable to acts of commission and omission by the Reserve authorities...”

Any system which gives so much power and so much discretion to a few men, [so] that mistakes – excusable or not – can have such far reaching effects, is a bad system. It is a bad system to believers in freedom just because it gives a few men such power without any effective check by the body politic -- this is the key political argument against an independent central bank...”

To paraphrase Clemenceau money is much too serious a matter to be left to the central bankers.”

end excerpt

See here: http://print-humanbeingsfirst.blogspot.com/2008/10/monetary-reform-who-will-bell-thecat.html

The RICO Act is perhaps more pertinent to this orchestrated financial collapse than anything else. Do you financial geniuses take all the world's peoples to be gullible fools? I was recommended this website by an MIT co-alum with these words:

'There are several items of interest in this issue. To keep the bandwidth down, I will not ordinarily forward it in the future. I suggest that those interested subscribe (free) via the link at the end. Simon Johnson is a former IMF Chief Economist and currently a Professor at MIT. He is that kind of rare person who is both a banking insider and yet on “our” side.'

I hope that this sentiment will be true. But the two essays I have now read on this website leave me with no comfort that this is indeed a Socrates' corner.

Friends, we of course obviously need sophisticated specialists to inform us mere plebeians – who are perpetually suffering the brunt of the ubermensch's imperative to lead us by the nose to our own voluntary servitude – of the crimes against humanity of perpetual debt enslavement and how it was done to us.

But what I am certain we don't need is more disinformation and “limited hangout” for the same purpose, by variously focussing on the lower-order bits of the matter in the most erudite fashion, and through clever omissions and disingenuousness of emphasis for “cognitive infiltration” which ultimately only introduces “beneficial cognitive diversity” – Harvard's Cass Sunstein-ese for crafting red herrings to defocus dissent. I for one have had enough eruditeness – don't care for such learned gibberish.

Where is the straight talk from the “experts”? Or is that a nonsequitur of modernity? Call a spade a spade – it ain't all that complicated – take the red pill, or minimally, stop peddling the blue one before the mostly stoned masses!

But guess what? Just as the Greeks have run out of patience:

http://dailymail.co.uk/news/worldnews/article-1257243/Greek-riots-Up-60-000-people-streets-protest-government.html

the poor Americans too will predictably, and very soon, be marching on that same road of revolt.

And having shrewdly anticipated exactly that, that “world government could only be kept in being by force” – see the full blown treatise in context in Bertrand Russell's Impact of Science on Society here:

http://books.google.com/books?id=IZ3miaHwjdUC&pg=PA37&lpg=PA37

the US Military has been ready for street battle in America's main streets since October 1, 2008 through the calculated repeal of the Posse Comitatus Act, and both HR 645 and various provisions of the “Enemy Belligerent” Act of 2010. The famous “Enemy Combatant” PATRIOT ACT was already renewed by the Administration:

http://thepeoplesvoice.org/TPV3/Voices.php/2010/03/16/hr-645-u-s-preparing-for-civil-unrest

Wait – isn't that all about those infernal “Islamofascists” because of which the poor Americans are losing all their famously inalienable Constitutional Rights?

http://print-humanbeingsfirst.blogspot.com/2009/03/war-on-terror-not-about-islamofascism.html

All part of the great interlinked and interconnected multivariable con-game to usher in CFR's Global Governance – for which the CFR website even has a Global Governance progress monitor – and which was formally unveiled by the EU President as 2009 being the first official year of Global Governance:

http://youtube.com/watch?v=QEqFtVrAgSo

And you are telling us that this financial collapse that is key to that Global Governance by the handful of private banksters' centralizing the entire world's monetary system, economics, and the new central currency being planned after the dollars calculated crash – which will wipe out in a single stroke of magic all of America's debt held in foreign hands while shoving the new currency down the world's throat simultaneously – under their oligarchic umbrella, is due to:

This practice, enabled by a 2005 legal change, directly destabilized the financial sector and led to the ultimate credit crisis of 2008.”?

And that it's solution lies in:

"Little has been done to address the maturity mismatch associated with the use of short-term (overnight) repo funding by banks to finance longer term assets."?

Right.

This is of the same [perverse] order as the famous red herring of Tobin Tax analyzed by this scribe in:

http://print-humanbeingsfirst.blogspot.com/2008/11/monetary-conspiracy-world-government.html

If you ask me, a lowly plebeian, I rather agree with maestro Milton Friedman in the core diagnosis of the age-old problem:

Any system which gives so much power and so much discretion to a few men, [so] that mistakes – excusable or not – can have such far reaching effects, is a bad system. It is a bad system to believers in freedom just because it gives a few men such power without any effective check by the body politic -- this is the key political argument against an independent central bank...”.

And it is the primal first-source of “all the evil that follows!”

Lastly, as an epilogue to the above ['rant'], I just saw a brief blurb on Simon Johnson's new book and I hope that it addresses the fundamental problems ab initio, and also outlines the real solutions and names the real culprits who have grafted by way of the mighty sovereign – by enacting the laws which suited them for their purpose! I look forward to reading it.

Thank you.

Zahir Ebrahim

Project Humanbeingsfirst.org

Response submitted to Simon Johnson's The Baseline Scenario Blog on Tuesday March 16, 2010

http://baselinescenario.com/2010/03/16/a-whiff-of-repo-105/#comment-46860



Source URL: http://print-humanbeingsfirst.blogspot.com/2010/03/lett-simonjohnson-mit-imf-zahirebrahim.html

Source PDF: http://humanbeingsfirst.files.wordpress.com/2010/03/lett-simonjohnson-mit-imf-zahirebrahim-mar172010.pdf




The author, an ordinary researcher and writer on contemporary geopolitics, a minor justice activist, grew up in Pakistan, studied EECS at MIT, engineered for a while in high-tech Silicon Valley (patents here), and retired early to pursue other responsible interests. His maiden 2003 book was rejected by six publishers and can be read on the web at http://PrisonersoftheCave.org. He may be reached at http://Humanbeingsfirst.org. Verbatim reproduction license at http://www.humanbeingsfirst.org#Copyright.


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Letter to MIT Professor and former IMF Chief Economist, Simon Johnson By Zahir Ebrahim


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