tagged w/ racket
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Kiva is a San Francisco company that has shown ads around the country that have former President Bill Clinton telling you how you can invest only $25 and get back at least a 95% return on your investment. This sounds all good and well until you start to think about it. What they’re saying is that if you give them $25 you’ll get back at least 95% of that, not 100% of that, but 95% of that. This is like saying give me $25 and I can guarantee a return on your money of at least $23.75. That’s not $23.75 over the $25, but basically give us $25 and we can guarantee you a pay back of $23.75.Kiva is a San Francisco company that has shown ads around the country that have former... more
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Gawain
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12 months ago
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Major-General Smedley Butler (1881-1940)
Major-General Smedley Darlington Butler, a 33-year veteran of the Marine Corps who was twice decorated with the Medal of Honor, blew the whistle on the fascist plot to oust FDR. He also confessed to having been a “high class muscle-man for Big Business, for Wall Street and for the Bankers. In short, I was a racketeer, a gangster for capitalism.”
In his book War is a Racket, 1935, Butler opens with these lines:
“War is a racket. It always has been. It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope…. [and] the profits are reckoned in dollars and the losses in lives.
A racket is best described as something that is not what it seems to the majority of the people. Only a small ‘inside’ group knows what it is about. It is conducted for the benefit of the very few, at the expense of the very many. Out of war a few people make huge fortunes.
For a great many years, as a soldier, I had a suspicion that war was a racket; not until I retired to civil life did I fully realize it…. I must face it and speak out.”
In “Time of Peace,” Common Sense, Nov. 1935, Butler said:
“There isn’t a trick in the racketeering bag that the military gang is blind to. It has its ‘finger men’ (to point out enemies), its ‘muscle men’ (to destroy enemies), its ‘brain men’ (to plan war preparations), and a “Big Boss” (super-nationalistic capitalism).
It may seem odd for a military man to adopt such a comparison. Truthfulness compels me to.
I suspected I was just part of a racket at the time. Now I am sure of it. Like all the members of the military profession, I never had a thought of my own until I left the service. My mental faculties remained in suspended animation while I obeyed the orders of higher-ups.
I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. The record of racketeering is long. I helped purify Nicaragua for the international banking house of Brown Brothers in 1909-1912. I brought light to the Dominican Republic for American sugar interests in 1916. I helped make Honduras “right” for American fruit companies in 1903. In China in 1927, I helped see to it that Standard Oil went its way unmolested….
I had, as the boys in the back room would say, a swell racket…. I might have given Al Capone a few hints. The best he could do was operate his racket in three city districts. We Marines operated on three continents….
Our exploits against the American Indian, the Filipinos, the Mexicans, and against Spain are on a par with the campaigns of Genghis Khan, the Japanese in Manchuria and the African attack of Mussolini. No country has ever declared war on us before we first obliged them with that gesture. Our whole history shows we have never fought a defensive war.”
Butler made these conclusions in his book War is a Racket:
“* We must take the profit out of war.
* We must permit the youth…, who would bear arms, to decide whether or not there should be war.
* We must limit our military to defense purposes….
Secretly each nation is studying and perfecting newer and ghastlier means of annihilating its foes wholesale…. Ships will continue to be built, for shipbuilders must make their profits. And guns still will be manufactured… powder and rifles will be made, for the munitions makers must make their huge profits…. Victory or defeat will be determined by the skill and ingenuity of our scientists.
If we put them to work making poison gas and more and more fiendish mechanical and explosive instruments of destruction, they will have no time for the constructive job of building greater prosperity for all peoples. By putting them to this useful job, we can all make more money out of peace than we can out of war – even the munitions makers.
So…I say, TO HELL WITH WAR!”Major-General Smedley Butler (1881-1940)
Major-General Smedley Darlington Butler,... more
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Four ways to see the true drivers of current wars around the world.
June 16, 2010 |
Editor's Note: With so many problems in the USA, it's no easy job to single out a handful of the most important, priority issues. But the enormous pile of wasted money spent on wars and the military-industrial complex has to be right at the top. Not only is the money spent an enormous destructive waste, but there's also the question of opportunity cost; just a fraction of war money could make major improvements to health care, schools and universities, and our decaying public infrastructure. The release of the Pentagon's Quadrennal Defense Review indicates that Obama intends to spend even more on war. David DeGraw's article below sheds some light on the madness of war spending and the serious attempts made by the racketeers to make our wars self-perpetuating to keep the cash rolling in; infuriating as it is sickening.
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A few recent news items help expose the true drivers of current wars around the world.
#1) Wherever there is a war, look for CIA/IMF/private military war profiteers covertly funding and supporting BOTH sides in order to keep the wars raging and the profits rolling in. As former CIA Station Chief John Stockwell explained: “Enemies are necessary for the wheels of the US military machine to turn.”
Here’s an important glimpse of truth to seep through last week in the NY Times, via Raw Story:
US-backed ‘bribes’ in Afghanistan may be funding Taliban
On June 7, the day Afghanistan became America’s longest-ever war, the New York Times reported on an ongoing investigation poised to prove that private security companies “are using American money to bribe the Taliban” to fuel combat and thus enhance demand for their services. The news follows a “series of events last month that suggested all-out collusion with the insurgents,” the Times said.
“The American people are paying to prop up a corrupt government that may be using our money to pay private companies to drum up business by paying the insurgents to attack our troops,” [Kucinich] said…. The Times interviewed a NATO official in Kabul who “believed millions of dollars were making their way to the Taliban.” [read more]
#2) On top of that report, Sunday’s headlines read, “Pakistani spy agency supports Taliban:”
Pakistan’s main spy agency continues to arm and train the Taliban and is even represented on the group’s leadership council despite U.S. pressure to sever ties and billions in aid to combat the militants, said a research report released Sunday.
The findings could heighten tension between the two countries and raise further questions about U.S. success in Afghanistan since Pakistani cooperation is seen as key to defeating the Taliban, which seized power in Kabul in the 1990s with Islamabad’s support.
U.S. officials have suggested in the past that current or former members of Pakistan’s powerful Inter-Services Intelligence agency, or ISI, have maintained links to the Taliban despite the government’s decision to denounce the group in 2001 under U.S. pressure.
More at the link:Four ways to see the true drivers of current wars around the world.
June 16, 2010 |... more
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May 29, 2010 |
If you're not angry with AT&T, Verizon, T-Mobile and Sprint -- America's four national wireless providers that reportedly control 90 percent of the market -- then here's some ridiculous news to raise your righteous ire.
Perhaps you'd be interested to know about one of the most outrageous cell phone scams? It's simple: Charge customers for being forced to listen to 15 seconds of unnecessary voicemail instructions reminding them how to leave a message after the beep. According to New York Times technology writer David Pogue, if Verizon customers leave voicemails or check their messages twice a day, the mammoth New Jersey-based telco takes in around $620 million. In return, you lose wasted hours of your life and have to pay for it.
Speaking of Verizon, have you heard about the representative who refused to shut down a dead man's service, even though his daughter produced a death certificate and needed the account closed so settlement of his estate could proceed? Or the rep who tried to collect an overdue $308 bill from customer Al Burrows by threatening to, and I quote, "blow your muthafucking house up"? Do we need to even talk about AT&T's various controversies, from censoring Pearl Jam to allegedly helping the National Security Agency unlawfully monitor the American people's communications?
The telco giants' latest disgrace, according to a recent Federal Communications Commission report, has been given the egregious name of "bill shock" (PDF). Which is a misnomer, actually: it's certainly not shocking to find, as the FCC explains, that "30 million Americans -- or one in six mobile users -- have experienced...a sudden increase in their monthly bill that is not caused by a change in service plan." It's even less alarming to discover that "nearly half of cell phone users who have plans with early termination fees (ETFs) -- and almost two-thirds of home broadband users with ETFs --don’t know the amount of the fees they’re accountable for."
"In January, we sent letters to the major wireless providers asking the rationale for their ETFs," FCC spokesperson Rosemary Kimballl told AlterNet. "While the business model of subsidizing phones by the ETFs is the carriers' choice, our position is that the ETF charge must be made clear to the consumer when he is signing the contract. And this does not seem to be the case in many instances."
It is the kind of obscure legalese the industry is known for. Their contracts are dense with clauses that no self-respecting human should have to wade through, just to place a call or send a text. ETFs are a particularly blatant insult to wireless customers, who can't leave an underperforming carrier (and that's really all of them) without forking over hundreds of hard-earned dollars. In fact, AT&T just nearly doubled its $175 early termination fee to $325 in May. That cold, capitalist logic is built specifically for bottom lines and earnings reports, not for flawless customer service. ETFs are financial shackles to mediocrity, and they're just the start.
More at the link:May 29, 2010 |
If you're not angry with AT&T, Verizon, T-Mobile... more
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We're only just discovering how widespread the rip-off schemes riddling our economy are.
March 18, 2010 |
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Every great American boom and bust makes and breaks its share of crooks. The past decade -- call it the Ponzi Era -- has been no different, except for the gargantuan scale of white-collar crime. A vast wave of financial fraud swelled in the first years of the new century. Then, in 2008, with the subprime mortgage collapse, it crashed on the shore as a full-scale global economic meltdown. As that wave receded, it left hundreds of Ponzi and pyramid schemes, as well as other get-rich-quick rackets that helped fuel our recent economic frenzy, flopping on the beach.
The high-water marks from that crime wave, those places where the corruption reached its zenith, are still visible today, like the 17th floor of 885 Third Avenue in midtown Manhattan, the nerve center of investment firm Bernard L. Madoff Investment Securities -- and, as it turned out, a $65 billion Ponzi scheme, the largest in history. Or Stanfordville, a sprawling compound on the Caribbean island of Antigua named for its wealthy owner, a garrulous Texan named Allen Stanford who built it with funds from his own $8 billion Ponzi scheme. Or the bizarrely fortified law office -- security cards, surveillance cameras, hidden microphones, a private elevator -- of Florida attorney Scott Rothstein, who duped friends and investors out of $1.2 billion.
The more typical marks of the Ponzi Era, though, aren’t as easy to see. Williamston, Michigan, for instance, lacks towering skyscrapers, Italian sports cars, million-dollar mansions, and massive security systems. A quiet town 15 miles from Lansing, the state capital, Williamston is little more than a cross-hatching of a dozen or so streets. A “DOLLAR TIME$” store sits near Williamston’s main intersection -- locals affectionally call it the "four corners" -- and its main drag is lined with worn brick buildings passed on from one business to the next like fading, hand-me-down jeans. It’s here, far from New York or Antigua, that thanks to two brothers seized by a financial fever dream, the Ponzi Era made its truest, deepest American mark.
Jay and Eric Merkle, active church members and successful local businessmen, were well known among Williamston’s residents. In 2004, the brothers discovered that an oil-and-gas venture, which they had invested in and which promised them quick, lucrative returns, was a scam. They’d been duped. Their next move should have been simple: turn in the crooks and get on with their lives, their pockets a few dollars lighter. Jay and Eric, however, grasped the spirit of their age and made another decision entirely -- they teamed up with the guys who had ripped them off, in the process switching from prey to predator.
That first venture actually floundered, but in 2005, court records show, they started their own Ponzi scheme, Platinum Business Industries (PBI). Based in Williamston, PBI claimed it was socking its investors’ money into lucrative oil and gas exploration opportunities in Oklahoma and Texas, and it promised the investors absurdly high returns -- 6% a month, or 72% a year. Despite such promises, the brothers assured town locals handing over their hard-earned dollars that little risk was involved. Even if the energy exploration didn’t pay off, the land acquired by PBI was valuable and could be sold to offset any losses.
Like Madoff in Palm Beach, the Merkles in Williamston exploited local ties -- church and family -- to reel in new investors; and like Madoff's investment fund, PBI, too, was a complete sham, and a classic Ponzi scheme -- that is, an investment scam in which existing investors’ returns are paid for with money from new investors. In the case of PBI, there was no energy exploration in Oklahoma and Texas.
Some of the money they received from later investors the Merkles used to pay off earlier ones and give their scheme the look of success. But in their case, there was a rub. The Merkles were distinctly creatures of the Ponzi Era: they evidently couldn’t help themselves. Even as they ran their own Ponzi racket, documents show, they were getting fleeced. What they weren't paying out in fake returns the Merkles bet on high-yield, get-rich-quick schemes in the U.S. and abroad that had nothing to do with oil and gas -- and other Ponzi schemers and con artists were robbing them blind.
More at the link:We're only just discovering how widespread the rip-off schemes riddling our... more
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