Statement in Response to U.S. Simulated Nuclear Attacks

on North Korea and Cyber Attacks in North and South Korea

The American Friends Service Committee (AFSC) has long opposed military actions on the Korean peninsula that serve to deepen and prolong a conflict that has persisted since the Korean War.  This month another round of military actions and escalations by all parties are now underway in the region, including repeated simulated U.S. nuclear attacks against North Korea by B-2 and B-52 bombers in the midst of ongoing U.S.-South Korean war games.  We call once again for an end to such provocative actions and a concerted effort to de-escalate and resolve the longstanding regional conflict that has taken a deep, generations-long toll on the region.

Such simulations and the history of U.S. nuclear threats during past Korean crises contributed to the development of North Korea’s nuclear arsenal and its recent nuclear test, threatening to ignite a regional nuclear arms race.  Military threats made routinely by North and South Korea as well as recent and possibly related cyber-attacks against North Korean media outlets and against South Korean broadcasters and banks further escalate the conflict.

Provocations of this sort – routine or otherwise – can too easily lead to miscalculations, and generate fears and passions that make it difficult for political leaders to respond with necessary caution. We are sobered by the memory of how such miscalculations have triggered cataclysmic wars in the past and even brought nuclear powers to the brink of all-out war.

The escalation of tensions and confrontations needs to be halted:

• AFSC urges all parties to step back from further provocations.
• AFSC further calls for the suspension of war games and military exercises on all sides. In particular, the U.S. should halt its provocative simulated nuclear attacks which are more likely to reinforce the DPRK’s commitment to its incipient nuclear arsenal, rather than to open a constructive dialogue.

To set relations on a better course:

• AFSC urges renewed diplomatic engagement and negotiations between the North and South Korean Governments.
• Echoing the views of former U.S. Ambassador to South Korea Donald Gregg, AFSC reminds the U.S. government that sanctions and military threats will not succeed in ending decades of militarized tensions. The Obama Administration should reach out to North Korea with the goal of negotiating a peace agreement to finally end the Korean War.

Philadelphia, PA  – March 30, 2013                                                        Contact:  Alexis Moore (215-241-7060)

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The American Friends Service Committee is a Quaker organization that includes people of various faiths who are committed to social justice, peace and humanitarian service. Its work is based on the belief in the worth of every person and faith in the power of love to overcome violence and injustice.

The Confiscation Scheme Planned for U.S. and U.K. Depositors

http://www.truthdig.com/report/item/the_confiscation_scheme_planned_for_us_and_uk_depositors_20130328/

Posted on Mar 28, 2013

By Ellen Brown, chairman of the Public Banking Institute

This article first appeared at Web of Debt.

Confiscating the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few Eurozone “troika” officials scrambling to salvage their balance sheets. A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds.

New Zealand has a similar directive, discussed in my last article here, indicating that this isn’t just an emergency measure for troubled Eurozone countries. New Zealand’s Voxy reported on March 19th:

The National Government [is] pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts . . . .

Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.

Can They Do That?

Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay. (See here and here.) But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.”  The bank will get the money and we will get stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price? Most people keep a deposit account so they can have ready cash to pay the bills.

The 15-page FDIC-BOE document is called “Resolving Globally Active, Systemically Important, Financial Institutions.”  It begins by explaining that the 2008 banking crisis has made it clear that some other way besides taxpayer bailouts is needed to maintain “financial stability.” Evidently anticipating that the next financial collapse will be on a grander scale than either the taxpayers or Congress is willing to underwrite, the authors state:

An efficient path for returning the sound operations of the G-SIFI to the private sector would be provided by exchanging or converting a sufficient amount of the unsecured debt from the original creditors of the failed company [meaning the depositors] into equity [or stock]. In the U.S., the new equity would become capital in one or more newly formed operating entities. In the U.K., the same approach could be used, or the equity could be used to recapitalize the failing financial company itself—thus, the highest layer of surviving bailed-in creditors would become the owners of the resolved firm. In either country, the new equity holders would take on the corresponding risk of being shareholders in a financial institution.

No exception is indicated for “insured deposits” in the U.S., meaning those under $250,000, the deposits we thought were protected by FDIC insurance. This can hardly be an oversight, since it is the FDIC that is issuing the directive. The FDIC is an insurance company funded by premiums paid by private banks. The directive is called a “resolution process,” defined elsewhere as a plan that “would be triggered in the event of the failure of an insurer . . . .” The only mention of “insured deposits” is in connection with existing UK legislation, which the FDIC-BOE directive goes on to say is inadequate, implying that it needs to be modified or overridden.

Continue reading US Plans to Seize FDIC Insured Bank Deposits in Next Crisis →

Leo W. Gerard

International President, United Steelworkers

Bank on Being Bilked

http://www.huffingtonpost.com/leo-w-gerard/bank-on-being-bilked_b_2944357.html

It’s hard to believe considering what happened in 2008 on Wall Street and in Washington, but banking is built on trust.

A worker hands his hard-earned dollars to a teller and trusts the money will be deposited and available for withdrawal when needed. Despite the crash on Wall Street, workers still trust bankers to safeguard deposits from robbers and reckless investments.

Granting banks a little less credulity might be wise. Just consider what happened in the past two weeks. A U.S. Senate investigation revealed that the 2010 Dodd-Frank banking reforms utterly failed in the case of the $6.2 billion “London Whale” gambling loss at JPMorgan Chase. Then a U.S. House committee passed seven measures to weaken Dodd-Frank. And there was the European Union’s demand that Cyprus expropriate money from depositors to prevent that nation’s big banks from failing. That means no depositor can trust that a government won’t dip its hands into savers’ accounts to bail too-big-to-fail banks. The trust is gone, baby.

Continue reading USW President: Bank on Being Bilked →

Full Show on Bill Moyers…

Sheila Bair, the longtime Republican who served as chair of the Federal Deposit Insurance Corporation (FDIC) during the fiscal meltdown five years ago, joins Bill to talk about American banks’ continuing risky and manipulative practices, their seeming immunity from prosecution, and growing anger from Congress and the public.

Also on the show, Richard Wolff, whose smart, blunt talk about the crisis of capitalism on his first Moyers & Company appearance was so compelling and provocative, we asked him to return. This time, the economics expert answers questions sent in by our viewers, diving further into economic inequality, the limitations of industry regulation, and the widening gap between a booming stock market and a population that increasingly lives in poverty.