Friday, June 20, 2014

10 Things That Everyone Should Know About The Federal Reserve

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What would happen if the Federal Reserve was shut down permanently? That is a question that CNBC asked recently, but unfortunately most Americans don’t really think about the Fed much. Most Americans are content with believing that the Federal Reserve is just another stuffy government agency that sets our interest rates and that is watching out for the best interests of the American people. But that is not the case at all. The truth is that the Federal Reserve is a private banking cartel that has been designed to systematically destroy the value of our currency, drain the wealth of the American public and enslave the federal government to perpetually expanding debt. During this election year, the economy is the number one issue that voters are concerned about. But instead of endlessly blaming both political parties, the truth is that most of the blame should be placed at the feet of the Federal Reserve. The Federal Reserve has more power over the performance of the U.S. economy than anyone else does. The Federal Reserve controls the money supply, the Federal Reserve sets the interest rates and the Federal Reserve hands out bailouts to the big banks that absolutely dwarf anything that Congress ever did. If the American people are ever going to learn what is really going on with our economy, then it is absolutely imperative that they get educated about the Federal Reserve.

The following are 10 things that every American should know about the Federal Reserve….

#1 The Federal Reserve System Is A Privately Owned Banking Cartel


The Federal Reserve is not a government agency.

The truth is that it is a privately owned central bank. It is owned by the banks that are members of the Federal Reserve system. We do not know how much of the system each bank owns, because that has never been disclosed to the American people.


 

The Federal Reserve openly admits that it is privately owned. When it was defending itself against a Bloomberg request for information under the Freedom of Information Act, the Federal Reserve stated unequivocally in court that it was “not an agency” of the federal government and therefore not subject to the Freedom of Information Act.

In fact, if you want to find out that the Federal Reserve system is owned by the member banks, all you have to do is go to the Federal Reserve website….

“The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation’s central banking system, are organized much like private corporations–possibly leading to some confusion about “ownership.” For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.”

Foreign governments and foreign banks do own significant ownership interests in the member banks that own the Federal Reserve system. So it would be accurate to say that the Federal Reserve is partially foreign-owned.

But until the exact ownership shares of the Federal Reserve are revealed, we will never know to what extent the Fed is foreign-owned.


#2 The Federal Reserve System Is A Perpetual Debt Machine



As long as the Federal Reserve System exists, U.S. government debt will continue to go up and up and up.
This runs contrary to the conventional wisdom that Democrats and Republicans would have us believe, but unfortunately it is true.

The way our system works, whenever more money is created more debt is created as well.

For example, whenever the U.S. government wants to spend more money than it takes in (which happens constantly), it has to go ask the Federal Reserve for it. The federal government gives U.S. Treasury bonds to the Federal Reserve, and the Federal Reserve gives the U.S. government “Federal Reserve Notes” in return. Usually this is just done electronically.

So where does the Federal Reserve get the Federal Reserve Notes?

It just creates them out of thin air.

Wouldn’t you like to be able to create money out of thin air?

Instead of issuing money directly, the U.S. government lets the Federal Reserve create it out of thin air and then the U.S. government borrows it.

Talk about stupid.

When this new debt is created, the amount of interest that the U.S. government will eventually pay on that debt is not also created.

So where will that money come from?

Well, eventually the U.S. government will have to go back to the Federal Reserve to get even more money to finance the ever expanding debt that it has gotten itself trapped into.

It is a debt spiral that is designed to go on perpetually.

You see, the reality is that the money supply is designed to constantly expand under the Federal Reserve system. That is why we have all become accustomed to thinking of inflation as “normal”.

So what does the Federal Reserve do with the U.S. Treasury bonds that it gets from the U.S. government?
Well, it sells them off to others. There are lots of people out there that have made a ton of money by holding U.S. government debt.

In fiscal 2011, the U.S. government paid out 454 billion dollars just in interest on the national debt.
That is 454 billion dollars that was taken out of our pockets and put into the pockets of wealthy individuals and foreign governments around the globe.

The truth is that our current debt-based monetary system was designed by greedy bankers that wanted to make enormous profits by using the Federal Reserve as a tool to create money out of thin air and lend it to the U.S. government at interest.

And that plan is working quite well.

Most Americans today don’t understand how any of this works, but many prominent Americans in the past did understand it.

For example, Thomas Edison was once quoted in the New York Timesas saying the following….

“That is to say, under the old way any time we wish to add to the national wealth we are compelled to add to the national debt.

Now, that is what Henry Ford wants to prevent. He thinks it is stupid, and so do I, that for the loan of $30,000,000 of their own money the people of the United States should be compelled to pay $66,000,000 — that is what it amounts to, with interest. People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work. That is the terrible thing about interest. In all our great bond issues the interest is always greater than the principal. All of the great public works cost more than twice the actual cost, on that account. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost.

But here is the point: If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good.”

We should have listened to men like Edison and Ford.

But we didn’t.
 
And so we pay the price.

On July 1, 1914 (a few months after the Fed was created) the U.S. national debt was 2.9 billion dollars.
Today, it is more than more than 5000 times larger.

Yes, the perpetual debt machine is working quite well, and most Americans do not even realize what is happening.

#3 The Federal Reserve Has Destroyed More Than 96% Of The Value Of The U.S. Dollar


Did you know that the U.S. dollar has lost 96.2 percent of its value since 1900? Of course almost all of that decline has happened since the Federal Reserve was created in 1913.

Because the money supply is designed to expand constantly, it is guaranteed that all of our dollars will constantly lose value.

Inflation is a “hidden tax” that continually robs us all of our wealth. The Federal Reserve always says that it is “committed” to controlling inflation, but that never seems to work out so well.

And current Federal Reserve Chairman Ben Bernanke says that it is actually a good thing to have a little bit of inflation. He plans to try to keep the inflation rate at about 2 percent in the coming years.

So what is so bad about 2 percent? That doesn’t sound so bad, does it?

Well, just consider the following excerpt from a recent Forbes article….

“The Federal Reserve Open Market Committee (FOMC) has made it official: After its latest two day meeting, it announced its goal to devalue the dollar by 33% over the next 20 years. The debauch of the dollar will be even greater if the Fed exceeds its goal of a 2 percent per year increase in the price level.”

#4 The Federal Reserve Can Bail Out Whoever It Wants To With No Accountability


The American people got so upset about the bailouts that Congress gave to the Wall Street banks and to the big automakers, but did you know that the biggest bailouts of all were given out by the Federal Reserve?
Thanks to a very limited audit of the Federal Reserve that Congress approved a while back, we learned that the Fed made trillions of dollars in secret bailout loans to the big Wall Street banks during the last financial crisis. They even secretly loaned out hundreds of billions of dollars to foreign banks.

According to the results of the limited Fed audit mentioned above, a total of $16.1 trillion in secret loans were made by the Federal Reserve between December 1, 2007 and July 21, 2010.

The following is a list of loan recipients that was taken directly frompage 131 of the audit report….

Citigroup - $2.513 trillion
Morgan Stanley - $2.041 trillion
Merrill Lynch - $1.949 trillion
Bank of America - $1.344 trillion
Barclays PLC - $868 billion
Bear Sterns - $853 billion
Goldman Sachs - $814 billion
Royal Bank of Scotland - $541 billion
JP Morgan Chase - $391 billion
Deutsche Bank - $354 billion
UBS - $287 billion
Credit Suisse - $262 billion
Lehman Brothers - $183 billion
Bank of Scotland - $181 billion
BNP Paribas - $175 billion
Wells Fargo - $159 billion
Dexia - $159 billion
Wachovia - $142 billion
Dresdner Bank - $135 billion
Societe Generale - $124 billion
“All Other Borrowers” - $2.639 trillion


So why haven’t we heard more about this?

This is scandalous.

In addition, it turns out that the Fed paid enormous sums of money to the big Wall Street banks to help “administer” these nearly interest-free loans….

“Not only did the Federal Reserve give 16.1 trillion dollars in nearly interest-free loans to the “too big to fail” banks, the Fed also paid them over 600 million dollars to help run the emergency lending program. According to the GAO, the Federal Reserve shelled out an astounding $659.4 million in “fees” to the very financial institutions which caused the financial crisis in the first place.”

Does reading that make you angry?

It should.

#5 The Federal Reserve Is Paying Banks Not To Lend Money


Did you know that the Federal Reserve is actually paying banks not to make loans?

It is true.

Section 128 of the Emergency Economic Stabilization Act of 2008 allows the Federal Reserve to pay interest on “excess reserves” that U.S. banks park at the Fed.

So the banks can just send their cash to the Fed and watch the money come rolling in risk-free.
So are many banks taking advantage of this?

You tell me. Just check out the chart below. The amount of “excess reserves” parked at the Fed has gone from nearly nothing to about 1.5 trillion dollars since 2008….



But shouldn’t the banks be lending the money to us so that we can start businesses and buy homes?

You would think that is how it is supposed to work.

Unfortunately, the Federal Reserve is not working for us.

The Federal Reserve is working for the big banks.

Sadly, most Americans have no idea what is going on.

Another example of this is the government debt carry trade.

Here is how it works. The Federal Reserve lends gigantic piles of nearly interest-free cash to the big Wall Street banks, and in turn those banks use the money to buy up huge amounts of government debt. Since the return on government debt is higher, the banks are able to make large profits very easily and with very little risk.

This scam was also explained in a recent article in the Guardian….

“Consider this: we pretend that banks are private businesses that should be allowed to run their own affairs. But they are the biggest scroungers of public money of our time. Banks are lent vast sums of money by central banks at near-zero interest. They lend that money to us or back to the government at higher rates and rake in the difference by the billion. They don’t even have to make clever investments to make huge profits.”

That is a pretty good little scam they have got going, wouldn’t you say?

#6 The Federal Reserve Creates Artificial Economic Bubbles That Are Extremely Damaging


By allowing a centralized authority such as the Federal Reserve to dictate interest rates, it creates an environment where financial bubbles can be created very easily.

Over the past several decades, we have seen bubble after bubble. Most of these have been the result of the Federal Reserve keeping interest rates artificially low. If the free market had been setting interest rates all this time, things would have never gotten so far out of hand.

For example, the housing crash would have never been so horrific if the Federal Reserve had not created such ideal conditions for a housing bubble in the first place. But we allow the Fed to continue to make the same mistakes.

Right now, the Federal Reserve continues to set interest rates much, much lower than they should be. This is causing a tremendous misallocation of economic resources, and there will be massive consequences for that down the line.

#7 The Federal Reserve System Is Dominated By The Big Wall Street Banks


Even since it was created, the Federal Reserve system has been dominated by the big Wall Street banks.

The following is from a previous article that I did about the Fed….

“The New York representative is the only permanent member of the Federal Open Market Committee, while other regional banks rotate in 2 and 3 year intervals. The former head of the New York Fed, Timothy Geithner, is now U.S. Treasury Secretary. The truth is that the Federal Reserve Bank of New York has always been the most important of the regional Fed banks by far, and in turn the Federal Reserve Bank of New York has always been dominated by Wall Street and the major New York banks.”

#8 It Is Not An Accident That We Saw The Personal Income Tax And The Federal Reserve System Both Come Into Existence In 1913


On February 3rd, 1913 the 16th Amendment to the U.S. Constitution was ratified. Later that year, the United States Revenue Act of 1913imposed a personal income tax on the American people and we have had one ever since.

Without a personal income tax, it is hard to have a central bank. It takes a lot of money to finance all of the government debt that a central banking system creates.

It is no accident that the 16th Amendment was ratified in 1913 and the Federal Reserve system was also created in 1913.

They have a symbiotic relationship and they are designed to work together.

We could fill Congress with people that are committed to ending this oppressive system, but so far we have chosen not to do that.

So our children and our grandchildren will face a lifetime of debt slavery because of us.

I am sure they will be thankful for that.

#9 The Current Federal Reserve Chairman, Ben Bernanke, Has A Nightmarish Track Record Of Incompetence


The mainstream media portrays Federal Reserve Chairman Ben Bernanke as a brilliant economist, but is that really the case?

Let’s go to the videotape.

The following is an extended excerpt from an article that I published previously….

In 2005, Bernanke said that we shouldn’t worry because housing prices had never declined on a nationwide basis before and he said that he believed that the U.S. would continue to experience close to “full employment”….

“We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though.”

In 2005, Bernanke also said that he believed that derivatives were perfectly safe and posed no danger to financial markets….

“With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly.”

In 2006, Bernanke said that housing prices would probably keep rising….

“Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise.”

In 2007, Bernanke insisted that there was not a problem with subprime mortgages….

“At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency.”

In 2008, Bernanke said that a recession was not coming….

“The Federal Reserve is not currently forecasting a recession.”

A few months before Fannie Mae and Freddie Mac collapsed, Bernanke insisted that they were totally secure….

“The GSEs are adequately capitalized. They are in no danger of failing.”

For many more examples that demonstrate the absolutely nightmarish track record of Federal Reserve Chairman Ben Bernanke, please see the following articles….

*”Say What? 30 Ben Bernanke Quotes That Are So Stupid That You Won’t Know Whether To Laugh Or Cry
*”Is Ben Bernanke A Liar, A Lunatic Or Is He Just Completely And Totally Incompetent?

But after being wrong over and over and over, Barack Obama still nominated Ben Bernanke for another term as Chairman of the Fed.

#10 The Federal Reserve Has Become Way Too Powerful


The Federal Reserve is the most undemocratic institution in America.

The Federal Reserve has become so powerful that it is now known as “the fourth branch of government”, but there are less checks and balances on the Fed than there are on the other three branches.

The Federal Reserve runs the U.S. economy but it is not accountable to the American people. We can’t vote those that run the Fed out of office if we do not like what they do.

Yes, the president appoints those that run the Fed, but he also knows that if he does not tread lightly he won’t get the money from the big Wall Street banks that he needs for his next election.

Thankfully, there are a few members of Congress that are complaining about how much power the Fed has. For example, Ron Paul once told MSNBC that he believes that the Federal Reserve is now actually more powerful than Congress…..

“The regulations should be on the Federal Reserve. We should have transparency of the Federal Reserve. They can create trillions of dollars to bail out their friends, and we don’t even have any transparency of this. They’re more powerful than the Congress.”

As members of Congress such as Ron Paul have started to shed some light on the activities of the Federal Reserve, that has caused many in the mainstream media to come to the defense of the Fed.

For example, a recent CNBC article entitled “If The Federal Reserve Is Abolished, What Then?” makes it sound like there is absolutely no other rational alternative to having the Federal Reserve run our economy.
But this is not what our founders intended.

The founders did not intend for a private banking cartel to issue our money and set our interest rates for us.
According to Article I, Section 8 of the U.S. Constitution, the U.S. Congress has been given the responsibility to “coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”.

So why is the Federal Reserve doing it?

But the CNBC article mentioned above makes it sound like the sky would fall if control of the currency was handed back over to the American people.

At one point, the article asks the following question….

“How would the U.S. economy then function? Something has to take its place, right?”

No, the truth is that we don’t need anyone to “manage” our economy.

The U.S. Treasury could be in charge of issuing our currency and the free market could set our interest rates.

We don’t need to have a centrally-planned economy.

We aren’t China.

And it goes against everything that our founders believed to be running up so much government debt.

For example, Thomas Jefferson once declared that if he could add just one more amendment to the U.S. Constitution it would be a ban on all government borrowing….

“I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article, taking from the federal government the power of borrowing.”

Oh, how things would have been different if we had only listened to Thomas Jefferson.

Please share this article with as many people as you can. These are things that every American should know about the Federal Reserve, and we need to educate the American people about the Fed while there is still time.

The Engineered Destruction and Political Fragmentation of Iraq

The Western media in chorus have described the unfolding conflict in Iraq as a “civil war” opposing the Islamic State of Iraq and al-Sham against the Armed forces of the Al-Maliki government.


(Also referred to as Islamic State of Iraq and the Levant (ISIL) or Islamic State of Iraq and Syria (ISIS))

The conflict is casually described as “sectarian warfare” between Radical Sunni and Shia without addressing “who is behind the various factions”. What is at stake is a carefully staged US military-intelligence agenda.

Go To Original

Known and documented, Al Qaeda affiliated entities have been used by US-NATO in numerous conflicts as “intelligence assets” since the heyday of the Soviet-Afghan war. In Syria, the Al Nusrah and ISIS rebels are the foot-soldiers of the Western military alliance, which oversees and controls the recruitment and training of paramilitary forces.

The Al Qaeda affiliated Islamic State of Iraq (ISI) re-emerged in April 2013 with a different name and acronym, commonly referred to as the Islamic State of Iraq and Syria (ISIS). The formation of a terrorist entity encompassing both Iraq and Syria was part of a US intelligence agenda. It responded to geopolitical objectives. It also coincided with the advances of Syrian government forces against the US sponsored insurgency in Syria and the failures of both the Free Syrian Army (FSA) and its various “opposition” terror brigades.

The decision was taken by Washington to channel its support (covertly) in favor of a terrorist entity which operates in both Syria and Iraq and which has logistical bases in both countries. The Islamic State of Iraq and al-Sham’s Sunni caliphate project coincides with a longstanding US agenda to carve up both Iraq and Syria into three separate territories: A Sunni Islamist Caliphate, an Arab Shia Republic, and a Republic of Kurdistan.

Whereas the (US proxy) government in Baghdad purchases advanced weapons systems from the US including F16 fighter jets from Lockheed Martin, the Islamic State of Iraq and al-Sham –which is fighting Iraqi government forces– is supported covertly by Western intelligence. The objective is to engineer a civil war in Iraq, in which both sides are controlled indirectly by US-NATO.

The scenario is to arm and equip them, on both sides, finance them with advanced weapons systems and then “let them fight”.

US-NATO is involved in the recruitment, training and financing of ISIS death squads operating in both Iraq and Syria. ISIS operates through indirect channels in liaison with Western intelligence. In turn, corroborated by reports on Syria’s insurgency, Western special forces and mercenaries integrate the ranks of ISIS.

US-NATO support to ISIS is channeled covertly through America’s staunchest allies: Qatar and Saudi Arabia. According to London’s Daily Express “They had money and arms supplied by Qatar and Saudi Arabia.”
“through allies such as Saudi Arabia and Qatar, the West [has] supported militant rebel groups which have since mutated into ISIS and other al-Qaeda connected militias. ( Daily Telegraph, June 12, 2014)
While the media acknowledges that the government of Prime Minister Nuri al-Maliki has accused Saudi Arabia and Qatar of supporting ISIS, it invariably fails to mention that both Doha and Riyadh are acting on behalf and in close liaison with Washington.

Under the banner of a civil war, an undercover war of aggression is being fought which essentially contributes to further destroying an entire country, its institutions, its economy. The undercover operation is part of an intelligence agenda, an engineered process which consists in transforming Iraq into an open territory.

Meanwhile, public opinion is led to believe that what is at stake is confrontation between Shia and Sunni.

America’s military occupation of Iraq has been replaced by non-conventional forms of warfare. Realities are blurred. In a bitter irony, the aggressor nation is portrayed as coming to the rescue of a “sovereign Iraq”.

An internal “civil war” between Shia and Sunni is fomented by US-NATO support to both the Al-Maliki government as well as to the Sunni ISIS rebels.

The break up of Iraq along sectarian lines is a longstanding policy of the US and its allies. (See map of Middle East below)

“Supporting both Sides”

The “War on Terrorism” consists in creating Al Qaeda terrorist entities as part of an intelligence operation, as well as also coming to the rescue of governments which are the target of the terrorist insurgency. This process is carried out under the banner of counter-terrorism. It creates the pretext to intervene.

ISIS is a caliphate project of creating a Sunni Islamist state. It is not a project of the Sunni population of Iraq which is broadly committed to secular forms of government. The caliphate project is part of a US intelligence agenda.

In response to the advance of the ISIS rebels, Washington is envisaging the use of aerial bombings as well as drone attacks in support of the Baghdad government as part of a counter-terrorism operation. It is all for a good cause: to fight the terrorists, without of course acknowledging that these terrorists are the “foot soldiers” of the Western military alliance.

Needless to say, these developments contribute not only to destabilizing Iraq, but also to weakening the Iraqi resistance movement, which is one of the major objectives of US-NATO.

The Islamic caliphate is supported covertly by the CIA in liaison with Saudi Arabia, Qatar and Turkish intelligence. Israel is also involved in channeling support to both Al Qaeda rebels in Syria (out of the Golan Heights) as well to the Kurdish separatist movement in Syria and Iraq.

More broadly, the “Global War on Terrorism” (GWOT) encompasses a consistent and diabolical logic: both sides –namely the terrorists and the government– are supported by the same military and intelligence actors, namely US-NATO.

While this pattern describes the current situation in Iraq, the structure of “supporting both sides” with a view to engineering sectarian conflict has been implemented time and again in numerous countries. Insurgencies integrated by Al Qaeda operatives (and supported by Western intelligence) prevail in a large number of countries including Yemen, Libya, Nigeria, Somalia, Mali, the Central African Republic, Pakistan. The endgame is to destabilize sovereign nation states and to transform countries into open territories (on behalf of so-called foreign investors).

The pretext to intervene on humanitarian grounds (e.g. in Mali, Nigeria or the Central African Republic) is predicated on the existence of terrorist forces. Yet these terrorist forces would not exist without covert US-NATO support.

The Capture of Mosul: US-NATO Covert Support to the Islamic State of Iraq and Syria (ISIS) 

Something unusual occurred in Mosul which cannot be explained in strictly military terms.

On June 10, the insurgent forces of the Islamic State of Iraq and the Levant (ISIS) allegedly (according to press reports) captured Mosul, Iraq’s second largest city, with a population of over one million people. While these developments were “unexpected” according to the Obama administration, they were known to the Pentagon and US intelligence, which were not only providing weapons, logistics and financial support to the ISIS rebels, they were also coordinating, behind the scenes, the ISIS attack on the city of Mosul.

While ISIS is a well equipped and disciplined rebel army when compared to other Al Qaeda affiliated formations, “the capture” of Mosul, did not hinge upon ISIS’s military capabilities. Quite the opposite: Iraqi forces which outnumbered the rebels by far, equipped with advanced weapons systems could have easily repelled the ISIS rebels.

There were 30,000 government forces in Mosul as opposed to 1000 ISIS rebels, according to reports. The Iraqi army chose not to intervene. The media reports explained without evidence that the decision of the Iraqi armed forces not to intervene was spontaneous characterized by mass defections.
Iraqi officials told the Guardian that two divisions of Iraqi soldiers – roughly 30,000 men – simply turned and ran in the face of the assault by an insurgent force of just 800 fighters. Isis extremists roamed freely on Wednesday through the streets of Mosul, openly surprised at the ease with which they took Iraq’s second largest city after three days of sporadic fighting. (Guardian, June 12, 2014, emphasis added)
The reports point to the fact that Iraqi military commanders were sympathetic with the Sunni led ISIS insurgency intimating that they are largely Sunni:
Speaking from the Kurdish city of Erbil, the defectors accused their officers of cowardice and betrayal, saying generals in Mosul “handed over” the city over to Sunni insurgents, with whom they shared sectarian and historical ties. (Daily Telegraph, 13 June 2014)
The report is misleading. The senior commanders were largely hardline Shiite. The defections occurred de facto when the command structure collapsed and senior (Shiite) military commanders left the city.

What is important to understand, is that both sides, namely the regular Iraqi forces and the ISIS rebel army are supported by US-NATO. There were US military advisers and special forces including operatives from private security companies on location in Mosul working with Iraq’s regular armed forces. In turn, there are Western special forces or mercenaries within ISIS (acting on contract to the CIA or the Pentagon) who are in liaison with US-NATO (e.g. through satellite phones).

Under these circumstances, with US intelligence amply involved, there would have been routine communication, coordination, logistics and exchange of intelligence between a US-NATO military and intelligence command center, US-NATO military advisers forces or private military contractors on the ground assigned to the Iraqi Army in Mosul and Western special forces attached to the ISIS brigades. These Western special forces operating covertly within the ISIS could have been dispatched by a private security company on contract to US-NATO.


Islamic State in Iraq and Greater Syria
Yaser Al-Khodor/Courtesy Reuters
In this regard, the capture of Mosul appears to have been a carefully engineered operation, planned well in advance. With the exception of a few skirmishes, no fighting took place.

Entire divisions of the Iraqi National Army –trained by the US military with advanced weapons systems at their disposal– could have easily repelled the ISIS rebels. Reports suggest that they were ordered by their commanders not to intervene. According to witnesses, “Not a single shot was fired”.
The forces that had been in Mosul have fled — some of which abandoned their uniforms as well as their posts as the ISIS forces swarmed into the city.

Fighters with the Islamic State of Iraq and Syria (ISIS), an al-Qaeda offshoot, overran the entire western bank of the city overnight after Iraqi soldiers and police apparently fled their posts, in some instances discarding their uniforms as they sought to escape the advance of the militants. http://hotair.com/archives/2014/06/10/mosul-falls-to-al-qaeda-as-us-trained-security-forces-flee/
A contingent of one thousand ISIS rebels takes over a city of more than one million? Without prior knowledge that the US controlled Iraqi Army (30,000 strong) would not intervene, the Mosul operation would have fallen flat, the rebels would have been decimated.

Who was behind the decision to let the ISIS terrorists take control of Mosul? Who gave them the “green light”

Had the senior Iraqi commanders been instructed by their Western military advisers to hand over the city to the ISIS terrorists? Were they co-opted?


Source: The Economist


Was the handing over of Mosul to ISIS part of a US intelligence agenda?

Were the Iraqi military commanders manipulated or paid off into allowing the city to fall into the hands of the ISIS rebels without “a single shot being fired”.

Shiite General Mehdi Sabih al-Gharawi who was in charge of the Mosul Army divisions “had left the city”. Al Gharawi had worked hand in glove with the US military. He took over the command of Mosul in September 2011, from US Col Scott McKean. Had he been co-opted, instructed by his US counterparts to abandon his command?

(image left) U.S. Army Col. Scott McKean, right, commander, 4th Advise and Assist Brigade, 1st Armored Division, talks with Iraqi police Maj. Gen. Mahdi Sabih al-Gharawi following a transfer of authority ceremony on September 4, 2011

US forces could have intervened. They had been instructed to let it happen. It was part of a carefully planned agenda to facilitate the advance of the ISIS rebel forces and the installation of the ISIS caliphate.

The whole operation appears to have been carefully staged.


In Mosul, government buildings, police stations, schools, hospitals, etc are formally now under the control of the Islamic State of Iraq and Syria (ISIS). In turn, ISIS has taken control of military hardware including helicopters and tanks which were abandoned by the Iraqi armed forces.
What is unfolding is the installation of a US sponsored Islamist ISIS caliphate alongside the rapid demise of the Baghdad government. Meanwhile, the Northern Kurdistan region has de facto declared its independence from Baghdad. Kurdish peshmerga rebel forces (which are supported by Israel) have taken control of the cities of Arbil and Kirkuk. (See map above) 

UPDATE [June 17, 2014]
Since the completion of this article, information has emerged on the central role played by the Sunni Tribes and sections of the former Baathist movement (including the military) in taking control of Mosul and other cities. The control of Mosul is in the hands of several Sunni opposition groups and the ISIS.

While these forces — which constitute an important component of the resistance movement directed against the al-Maliki government– are firmly opposed to ISIS, a de facto “relationship” has nonetheless emerged between the ISIS and the Sunni resistance movement.

The fact that the US is firmly behind ISIS does not seem to be a matter of concern to the Tribal Council:
Sheikh Zaydan al Jabiri, leader of the political wing of the Tribal Revolutionary Council, told Sky News his organisation viewed ISIS as dangerous terrorists, and that it was capable of taking them on.

“Even this blessed revolution that has taken place in Mosul, there may be jihadist movements involved in it, but the revolution represents all the Iraqi people – it has been brought about by the Sunni tribes, and some baathist elements, it certainly does not belong to ISIS,” he said.

But Mr Jabiri, [based in Amman]… also made a clear threat that without Western help, the tribes and ISIS may be forced to combine efforts targeting their shared enemy – the Shia-dominated Iraqi government. (Sky News, emphasis added)
An exiled leader of the Iraqi resistance movement calling for “Western help” from the aggressor nation? From the above statement, one has the distinct impression that the Tribal Revolutionary Council has been co-opted and/or infiltrated.

Moreover, in a bitter irony, within sectors of the Sunni resistance movement, US-NATO which supports both the Al Maliki government and the ISIS terrorists– is no longer considered the main aggressor nation.

The Sunni resistance movement broadly considers Iran, which is providing military assistance to the al-Maliki government as well as special forces- as the aggressor alongside the US.

In turn, it would appear that Washington is creating conditions for sucking Iran more deeply into the conflict, under the pretext of joining hands in fighting ISIS terrorism. During talks in Vienna on June 16, US and Iranian officials agreed “to work together to halt ISIS’s momentum—though with no military coordination, the White House stressed”.(WSJ, June 16, 2014)

In chorus The US media applauds: “The US and Iran have a mutual interest in stemming the advance of the Islamic State of Iraq and the Levant (ISIS)” (Christian Science Monitor, June 13 2014). An absurd proposition knowing that the ISIS is a creature of US intelligence, financed by the Western military alliance, with Western special forces in its ranks.

Is a regional conflict involving Iran in the making?

Tehran is using the ISIS pretext as an “opportunity” to intervene in Iraq: Iran’s intelligence is fully aware that ISIS is a terrorist proxy controlled by the CIA. 

Concluding Remarks 

There were no Al Qaeda rebels in Iraq prior to the 2003 invasion. Moreover, Al Qaeda was non-existent in Syria until the outset of the US-NATO-Israeli supported insurgency in March 2011.

The ISIS is not an independent entity. It is a creation of US intelligence. It is a US intelligence asset, an instrument of non-conventional warfare.

The ultimate objective of this ongoing US-NATO engineered conflict opposing the al-Maliki government forces to the ISIS insurgency is to destroy and destabilize Iraq as a Nation State. It is part of an intelligence operation, an engineered process of transforming countries into territories. The break up of Iraq along sectarian lines is a longstanding policy of the US and its allies.

The ISIS is a caliphate project of creating a Sunni Islamist state. It is not a project of the Sunni population of Iraq which historically has been committed to a secular system of government. The caliphate project is a US design. The advances of ISIS forces is intended to garnish broad support within the Sunni population directed against the al-Maliki government

Through its covert support of the Islamic State of Iraq and al-Sham, Washington is overseeing the demise of its own proxy regime in Baghdad. The issue, however, is not “regime change”, nor is the “replacement” of the al-Maliki regime contemplated.
The division of Iraq along sectarian-ethnic lines has been on the drawing board of the Pentagon for more than 10 years.

What is envisaged by Washington is the outright suppression of the Baghdad regime and the institutions of the central government, leading to a process of political fracturing and the elimination of Iraq as a country.

This process of political fracturing in Iraq along sectarian lines will inevitably have an impact on Syria, where the US-NATO sponsored terrorists have in large part been defeated.

Destabilization and political fragmentation in Syria is also contemplated: Washington’s intent is no longer to pursue the narrow objective of “regime change” in Damascus. What is contemplated is the break up of both Iraq and Syria along sectarian-ethnic lines. 

The formation of the caliphate may be the first step towards a broader conflict in the Middle East, bearing in mind that Iran is supportive of the al-Maliki government and the US ploy may indeed be to encourage the intervention of Iran.

The proposed re-division of both Iraq and Syria is broadly modeled on that of the Federation of Yugoslavia which was split up into seven “independent states” (Serbia, Croatia, Bosnia-Herzegovina, Macedonia (FYRM), Slovenia, Montenegro, Kosovo).

According to Mahdi Darius Nazemroaya, the re division of Iraq into three separate states is part of a broader process of redrawing the Map of the Middle East.

The above map was prepared by Lieutenant-Colonel Ralph Peters. It was published in the Armed Forces Journal in June 2006, Peters is a retired colonel of the U.S. National War Academy. (Map Copyright Lieutenant-Colonel Ralph Peters 2006)

Although the map does not officially reflect Pentagon doctrine, it has been used in a training program at NATO’s Defense College for senior military officers”. (See Plans for Redrawing the Middle East: The Project for a “New Middle East” By Mahdi Darius Nazemroaya, Global Research, November 2006)