Mission & Name
US Foreign Policy (Dr. El-Najjar's Articles)
Chop Shop Economics and Stealth Zionism
By Karin Friedemann
April 18, 2009
Causing $64 trillion of liquidity to vanish from the world
financial system and then manipulating the US government to reward the
perpetrators with bailout money requires the presence of the "right people"
in government, academia, and finance industries.
In The Shock
Doctrine Naomi Klein argues that Milton Friedman or Chicago School
influenced policy makers routinely used catastrophes to facilitate rewriting
of national economic rules to benefit a select subset of the world's
President Obama, whose economic background is all
Chicago School, brought the Friedmanites including National Economic Council
Director Larry Summers back
Summers came under recent public scrutiny because
2008 White House financial disclosure reports reveal he collected favours
from the very financial institutions that received huge taxpayer bailouts.
"The document provided for Summers, who serves as one of the president's
closest confidants, underscores just how close some of these officials are
to the industry over which they now have oversight," writes Sam Stein in the
J.P. Morgan Chase, which received $25 billion in
government bailout funds, had paid Summers $67,500 for a single speaking
engagement. Citigroup, which received $50 billion in "emergency" taxpayer
aid, had paid Summers $99,000. Goldman Sachs, which received a $12 billion
bailout, had paid Summers $202,500.
Glenn Greenwald of Salon explains
that people like Summers and friends "shuffle back and forth from the public
to the private sector and back again, repeatedly switching places with their
GOP counterparts in this endless public/private sector looting."
During the Clinton administration, as Secretaries of the Treasury,
Bob Rubin and Larry Summers
deregulated derivative trading. After leaving government service, Rubin
became a Citigroup director and used deregulation to ruin that Bank by
recommending investments in derivatives like
CDOs (Collateralized Debt
Obligations). For eight years of service Rubin received approximately $126
million in cash and stock.
Investors from Saudi Arabia, Kuwait and
UAE were effectively swindled out of billions as Citigroup value crashed
because of the CDO meltdown during the Bush administration. Larry Summers
became president of Harvard University in 2001. Rubin was Summers' main
booster at the Harvard Corporation, which chooses the president.
Summer's Harvard presidency erupted into scandal when the US government
accused Summers' associate, economics professor
Andrei Shleifer of financial improprieties during
work on a Harvard USAID grant to create a Russian stock market. The
government suspected Shleifer's wife Nancy Zimmerman of insider stock
Because Shleifer put Harvard in breach of Federal
regulations regarding grant money, Harvard had to pay $27 million to the US
government while Summers protected Shleifer and his job. Additional
questions arose over the management of the Harvard endowment, employee
compensation, and suspected middle market restraint of trade involving
During this turbulent period in
his career, Summers worked hard to improve his Jewish credentials. He
badmouthed anti-Israel divestment activists on campus but supported
Darfur-related divestment. He dumped his Christian wife Victoria Perry for
Holocaust Literature professor Elisa New, a close friend of Jewish Studies
professor Ruth Wisse, whose husband is chairman of board of directors of
CAMERA, a professional Israel advocacy organisation.
In a disastrous
blow to Harvard's academic stature, Summers rejected former UAE president
Shaikh Zayed bin Sultan Al Nahyan's $2 million donation for an Islamic
Studies chair at the Harvard Divinity School under pressure from Rachel Fish
of the David Project, which is another Israel advocacy group with
connections to CAMERA.
The Harvard Faculty of Arts and Sciences twice
voted "no confidence" in Summers, who resigned as Harvard president in 2006
amidst rumours of refusal to testify in an internal investigation of
financial fraud. Shortly thereafter the D.E. Shaw hedge fund hired Summers
with Rubin's recommendation and paid Summers $5.2 million for approximately
50 working days.
Obama's Chief of Staff
Rahm Emanuel trod a similar career path perhaps more
quickly because of superior Jewish Zionist credentials resulting from an
Irgunist father and civilian IDF service during Iraq War I.
investment bank Wasserstein Perella, whose founder
Bruce Wasserstein is heavily involved in Zionist
politics, hired Emanuel in 1999 and paid him $16 million for two years of
work, despite his having zero background in economics or finance.
Now this corrupt network is pushing through Congress another huge gift for
their friends: the Summers-Geithner Plan, which enables banks to make their
own valuation of toxic assets and then buy them with taxpayer money without
restoring the lost liquidity.
Paul Krugman writes in the New York
Times, "In effect, Treasury will be creating — deliberately! — the
functional equivalent of Texas S&Ls in the 1980s: financial operations with
very little capital but lots of government-guaranteed liabilities."
Dean Baker of Truthout points out: "Some hedge and equity fund managers
could make hundreds of millions or even billions off the
Geithner plan." This Plan
looks like a premeditated attempt to loot and
destroy the US
Karin Friedemann is
a Boston-based writer on the Middle East affairs and US politics