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Underworld

The Mega Banks’ Most Devious Scam Yet

Banks are no longer just financing heavy industry. They are actually buying it up and inventing bigger, bolder and scarier scams than ever, writes Matt Taibbi at Rolling Stone:

…Today, banks like Morgan Stanley, JPMorgan Chase and Goldman Sachs own oil tankers, run airports and control huge quantities of coal, natural gas, heating oil, electric power and precious metals. They likewise can now be found exerting direct control over the supply of a whole galaxy of raw materials crucial to world industry and to society in general, including everything from food products to metals like zinc, copper, tin, nickel and, most infamously thanks to a recent high-profile scandal, aluminum. And they’re doing it not just here but abroad as well: In Denmark, thousands took to the streets in protest in recent weeks, vampire-squid banners in hand, when news came out that Goldman Sachs was about to buy a 19 percent stake in Dong Energy, a national electric provider. The furor inspired mass resignations of ministers from the government’s ruling coalition, as the Danish public wondered how an American investment bank could possibly hold so much influence over the state energy grid.

There are more eclectic interests, too. After 9/11, we found it worrisome when foreigners started to get into the business of running ports, but there’s been little controversy as banks have done the same, or even started dabbling in other activities with national-security implications – Goldman Sachs, for instance, is apparently now in the uranium business, a piece of news that attracted few headlines.

Wall Street’s War

But banks aren’t just buying stuff, they’re buying whole industrial processes. They’re buying oil that’s still in the ground, the tankers that move it across the sea, the refineries that turn it into fuel, and the pipelines that bring it to your home. Then, just for kicks, they’re also betting on the timing and efficiency of these same industrial processes in the financial markets – buying and selling oil stocks on the stock exchange, oil futures on the futures market, swaps on the swaps market, etc.

Allowing one company to control the supply of crucial physical commodities, and also trade in the financial products that might be related to those markets, is an open invitation to commit mass manipulation. It’s something akin to letting casino owners who take book on NFL games during the week also coach all the teams on Sundays.

The situation has opened a Pandora’s box of horrifying new corruption possibilities, but it’s been hard for the public to notice, since regulators have struggled to put even the slightest dent in Wall Street’s older, more familiar scams. In just the past few years we’ve seen an explosion of scandals – from the multitrillion-dollar Libor saga (major international banks gaming world interest rates), to the more recent foreign-currency-exchange fiasco (many of the same banks suspected of rigging prices in the $5.3-trillion-a-day currency markets), to lesser scandals involving manipulation of interest-rate swaps, and gold and silver prices.

But those are purely financial schemes. In these new, even scarier kinds of manipulations, banks that own whole chains of physical business interests have been caught rigging prices in those industries. For instance, in just the past two years, fines in excess of $400 million have been levied against both JPMorgan Chase and Barclays for allegedly manipulating the delivery of electricity in several states, including California. In the case of Barclays, which is contesting the fine, regulators claim prices were manipulated to help the bank win financial bets it had made on those same energy markets.

And last summer, The New York Times described how Goldman Sachs was caught systematically delaying the delivery of metals out of a network of warehouses it owned in order to jack up rents and artificially boost prices.

You might not have been surprised that Goldman got caught scamming the world again, but it was certainly news to a lot of people that an investment bank with no industrial expertise, just five years removed from a federal bailout, stores and controls enough of America’s aluminum supply to affect world prices.

How was all of this possible? And who signed off on it?…

[continues at Rolling Stone]

Underworld

Havana Syndrome again? CIA officers are mowed down by a mysterious disease

A CIA officer in Moscow experienced symptoms of the so-called “Havana syndrome” in 2017. This became known to The New York Times with reference to sources in diplomatic circles.

CIA officer Mark Polimepulos, who helped lead covert operations in Russia and Europe, complained about the manifestation of mysterious symptoms. According to the newspaper, in December 2017, he felt severe dizziness, which later developed into a prolonged migraine, forcing him to retire. At that time, Polymerpoulos was 48 years old.

It is noted that such a case was not the only one. Similar symptoms were experienced by the staff of the American ambassadors in Cuba and China in 2016-2018. However, the exact number of cases and the place where this happened is not named. It is alleged that the US diplomats have tried to influence in a similar way around the world.

At the same time, the US State Department was unable to establish an unambiguous reason that caused the “Havana syndrome.” Among other things, it was assumed that the diplomats may have been exposed to an unidentified sound effect.

In 2017, it was reported that, beginning in late 2016, American diplomatic officials and their relatives in Cuba began to complain of symptoms such as hearing loss, nausea, headaches and balance disorder. 

The Associated Press received audio footage of the attack and described the harassing sounds as “the high-pitched sound of crickets combined with fingernails scratching on a board.” Then the American government suggested that Russia or China could be the culprit.

Many victims are still undergoing rehabilitation. Specialists from the University of Pennsylvania performed magnetic resonance imaging and revealed visible changes in the structure of the brain in the diplomatic missions.

Differences were found in 23 men and 17 women who complained of health problems while on diplomatic duties in Havana. Scientists have yet to figure out what causes the unusual symptoms.

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Underworld

How Russia and the United States nearly started a nuclear war in 1995

The Norwegian meteorological rocket incident remains the only time in history that the Russian president has activated his nuclear briefcase.

On January 25, 1995, Doomsday could have come in the world: the Russian Federation was preparing to launch a nuclear strike on the United States. How did it come about that the states that left the confrontation of the Cold War in the past and had just normalized relations with each other found themselves on the verge of mutual destruction?

The beginning of the war?

The cause of the crisis was an ordinary Norwegian meteorological rocket. Its launch from the small island of Anneia at 7 am local time (10 am Moscow time) towards Spitsbergen caused a stir in Russia. 

Black Brant XII.

Black Brant XII. Legion Media / ZUMA Press

Equipped with scientific equipment to study the aurora borealis, the Black Brant XII was similar in size to the nuclear-powered American Trident D-5 ballistic missile, intended for launch from submarines. In addition, it flew along a trajectory along which, as the Russian Defense Ministry believed, American missiles would fly in the event of a nuclear war. 

In December 1994, Norway informed 28 states, including Russia, about the planned launch, but did not give a specific date, limiting itself to specifying the period: from January 15 to February 10 of the next year. Due to bureaucratic delays, this information did not reach the Russian Missile Warning System, which sounded the alarm.

Decisive minutes

An emergency meeting with the country’s top political and military leadership was convened in the Kremlin. Defense Minister Pavel Grachev, Chief of the General Staff Mikhail Kolesnikov and President of the Russian Federation (as Supreme Commander-in-Chief) Boris Yeltsin had three strategic missile forces control terminals activated – the so-called nuclear suitcases.

Vladimir Sayapin / TASS

The military believed the lone missile could have been fired to create an electromagnetic pulse that knocked out Russian radars and communications systems. Following it, a massive blow could be expected.

For several tense minutes, as leaders watched it flight, it was decided whether Russia would launch a nuclear strike against the United States. 

“Little is known today about what Yeltsin said at the time, given that it could have been some of the most dangerous moments in the entire history of the nuclear era,” The Washington Post journalist, David Hoffman wrote three years after the incident : “They make it clear that the Cold War nuclear readiness system continues to operate, and how catastrophic its consequences could be, despite the fact that the feud between the great powers is already over.”   

The situation was discharged only when it became clear that the rocket had gone towards Spitsbergen (not far from which it fell into the ocean). The nuclear cases have been deactivated. Russian President Boris Yeltsin (center) and Russian Defense Minister Pavel Grachev (right).

Russian President Boris Yeltsin (center) and Russian Defense Minister Pavel Grachev (right). Igor Mikhalev / Sputnik

The incident with bringing Russia’s Strategic Nuclear Forces to combat readiness, soon became the property of the world community. When, four years later, the Norwegians were about to repeat their launch of Black Brant XII and reported this to the Russian Foreign Ministry, the US additionally warned all key Russian military departments about it through their channels. As a result, this time there were no unpleasant surprises. 

Source: rbth.com

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Underworld

Germany conducted exercises in case of nuclear war

Bundeswehr / Birthe Brechters

The Bundeswehr with partners in the North Atlantic Alliance ( NATO) trained in operations in a nuclear war.

The German army, together with Italian, Belgian and Dutch colleagues, conducted exercises in the event of a conflict with the use of nuclear weapons.

The location of the exercise “Steadfest Noon” was chosen airbase “Nörfenich”, where the tactical squadron of the Luftwaffe 31 “Boelcke” is located. Together with the Luftwaffe of the Bundeswehr, the air forces of other NATO countries, in particular, Italy, the Netherlands and Belgium, took part in the exercises.

According to a report by Bild, the exercise scenario involved training procedures for safely removing nuclear weapons from storage, delivering ammunition and installing them on aircraft. The training flights took place without nuclear weapons, and in parallel with the aviation exercises at the Büchel airbase, where the tactical squadron of the Luftwaffe 51 Immelman is located, the Resilient Guard air defense systems were trained to protect the airfield from air attacks.

The training sites for the Luftwaffe of the Bundeswehr were not chosen by chance, since the Nörfenich airbase is a reserve storage site for the B61, a hydrogen bomb that forms the basis of nuclear weapons of the US strategic nuclear forces. 

Some of this ammunition is stationed at NATO bases in Europe. The exact number of hydrogen bombs that are stored at European sites and which ones are not reported. In Europe, the B61 is carried by Panavia Tornado fighter-bombers (pictured) and General Dynamics F-16 Fighting Falcon fighters.

Recall that the B61 thermonuclear bomb is the main weapon of the US strategic nuclear forces, although it entered service in 1968. Since 2012, a new guided version of the B61-12 has been under development, which will replace all B61 and B83 bombs that have been in service since 1983. It can be used both on strategic bombers and tactical aircraft. About two billion dollars were spent on the development of the 12th modification of the aerial bomb.

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