Paul Craig Roberts

Financial Imperialists Attack Russia

A dangerous new trend is the successful manipulation of the financial markets by the Federal Reserve, other central banks, private banks, and the US Treasury. The Federal Reserve reduced real interest rates on US government debt obligations first to zero and then pushed real interest rates into negative territory. Today the government charges you for the privilege of purchasing its bonds.

People pay to park their money in Treasury debt obligations, because they do not trust the banks and they know that the government can print the money to pay off the bonds. Today Treasury bond investors pay a fee in order to guarantee that they will receive the nominal face value (minus the fee) of their investment in government debt instruments.

The fee is paid in a premium, which raises the cost of the debt instrument above its face value and is paid again in accepting a negative rate of return, as the interest rate is less than the inflation rate.

Think about this for a minute. Allegedly the US is experiencing economic recovery. Normally with rising economic activity interest rates rise as consumers and investors bid for credit. But not in this “recovery.”

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Ray McGovern

Former Rep. Pete Hoekstra (left) argues with ex-CIA analyst Ray
McGovern about the Senate torture report on CCTV America’s
“The Heat” on Dec. 11, 2014. (Screenshot from program)

It’s rare on TV when you see two former senior U.S. officials clashing angrily over something as significant as torture. Usually decorum prevails. But ex-CIA analyst Ray McGovern wasn’t going to let the ex-House intelligence oversight chief get away with a bland defense of torture.

When you get an opportunity like this, don’t fall back – I heard my Irish grandmother telling me last Thursday as I took my place at the table to discuss torture with a former congressional committee chairman whose job it was to prevent such abuse.

Almost rubbing shoulders with me on my right was former House Intelligence Committee chair (2004-2007) Pete Hoekstra, a Republican from Michigan. Central China TV had asked both of us to address the findings of the Senate Intelligence Committee report on CIA torture. I said yes, of course, since I was highly interested in how Hoekstra, with his front seat for the saga of “Enhanced Interrogation Techniques,” would try to ‘splain it all.

Here was a unique chance to publicly confront a malleable, moral dwarf who had been in a uniquely powerful position to end the torture. The moment was also an odd one, for Hoekstra – not the brightest star in the constellation – seemed oblivious to his gross misfeasance and dereliction of duty. Or how his behavior might look to non-torture aficionados.

Hoekstra took over the House intelligence “oversight” committee in 2004 when former chair, Porter Goss, a Republican from Florida, was picked as the perfect – as in fully-briefed-and-complicit – functionary to become director of the CIA, replacing “slam-dunk” George Tenet. Tenet left in disgrace in July 2004, still seeking those notional Iraqi “weapons of mass destruction” in vain.

Last week, amid the unfolding torture scandal, Hoekstra went on CCTV America’s daily talk show, “The Heat,” to offer a heated defense of what he insisted on still calling “enhanced interrogation techniques.” My opportunity for a blunt exchange with him over exactly what the House Intelligence Committee knew came near the end of the show.

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