Department of Justice

Through most of the 20th century, America led something of a charmed life, at least when compared with the disasters endured by almost every other major country. We became the richest and most powerful nation on earth, partly due to our own achievements and partly due to the mistakes of others. The public interpreted these decades of American power and prosperity as validation of our system of government and national leadership, and the technological effectiveness of our domestic propaganda machinery - our own American Pravda - has heightened this effect. Author James Bovard has described our society as an “attention deficit democracy,” and the speed with which important events are forgotten once the media loses interest might surprise George Orwell.

One can read "The Lethal Presidency of Barack Obama" to get a true sense of Obama's "the best defense is a relentless drone everyone offense, ignore collateral damage and take out a few Americans in the process" policy. Or one can stare at rising stawks and enjoy their Obamaphones. Obe can't have both.

For an affair that numerous media outlets will have you believe has been spun out of all proportion, and that it really is the conservatives fault that the IRS was targeting them, it is somewhat ironic that the IRS official who opened up the entire Pandora's box with her targeted apology two weeks ago, and who learned in 2011 about the improper targeting of political groups yet lied under oath to Congress to the contrary, has decided to plead the Fifth and will invoke her right not to testify on Wednesday for fear of self-incrimination, according to her lawyer. But this would mean that... she may have something to hide? And that would be rather problematic for the media's spin cycle, although we are confident it will take just a few minutes of deep though in the proper channels, before this all too overt admission of guilt is somehow spun as the IRS being the unwitting targets of an aggressive McCarthyesque campaign seeking to discredit the government's impartial tax collector whose only noble purpose is to enable the government to get even bigger.

Use It or Lose It Time for the Constitution and Bill of Rights ...

Obviously with Buffett a major shareholder of Moody's, the only place where a downgrade of Berkshire could come from was S&P. Moments ago, the rating agency that dared to downgrade the US for which it is being targeted by Eric Holder's Department of "Justice", did just that.

Objective Analysis: Obama Versus Nixon

Today at 1pm the real circus starts. From the House Committee on the Judiciary: "On Wednesday, May 15 at 1:00 p.m., Attorney General Eric Holder will testify before the House Judiciary Committee for an oversight hearing on the U.S. Department of Justice.  The hearing will focus on the Justice Department obtaining two months of telephone records of reporters and editors for The Associated Press, the unwarranted targeting of conservative groups by the IRS, the recent bombings in Boston, wasteful spending at the Justice Department, and troubling allegations of the politicization of the Justice Department under Attorney General Holder’s leadership."

From one farce to another:

• *HOLDER SAID TO RECUSE HIMSELF FROM AP PHONE RECORDS CASE
• *HOLDER SAID TO RECUSE HIMSELF BECAUSE HE WAS QUESTIONED IN CASE

Yesterday, the Associated Press revealed the Department of Justice had been secretly monitoring both the personal and work phones of numerous AP editors and reporters. So just what did Holder know? For now, it is not known if Holder authorized or even knew about the investigation.

And so the final curtain falls on the myth of what was supposed to be, in its own words, the "most transparent administration" in history. As it turns out, the big Friday story of Bloomberg journalists snooping on clients was just amateur hour compared to what the AP was about to serve. In fact, the Watergate affair may soon appear like a walk in the park compared to the First Amendment shitstorm that is about to be unleashed following the just reported news that the US Department of Justice had "secretly obtained two months of telephone records of reporters and editors for The Associated Press in what the news cooperative's top executive called a "massive and unprecedented intrusion" into how news organizations gather the news." First amendment? Freedom of speech and press? Surely not when it comes to the Nobel-peace prize winning President and those who dare to expose his secret ways. And what's worst, is that the AP breach has all the makings of a spiteful hack driven by personal vengeance against one of America's premier news outlets.

• Einhorn's advice to investors: don't take my advice (Reuters)
• Next: floating dead vegetables: Chinese inflation rises on soaring vegetable prices (FT)
• The scramble for the bottom dollar is on: McDonald's, Wendy's Battle for Value-Centric Customers (WSJ)
• Cheaper iPhone coming after all: Apple supplier Pegatron boosts China workforce by 40 percent in second quarter (Reuters)
• House set to pass tactical Republican debt bill (Reuters)
• Underwriting bonanza: Goldman Said to Earn $500 Million Arranging Malaysia Bond (BBG)
• G7 finance chiefs to discuss bank reform push (Reuters)
• Big Banks Push Back Against Tighter Rules (WSJ)
• University endowments trim holdings in US Treasuries (FT)
• Ex-Pakistan PM's son abducted as Taliban threaten poll (Reuters)
• China Dowry Filled With Gold Signals Gains for Jewelers (BBG)
• As discussed here over a year ago: China inflation data shows central bank policy dilemma (Reuters)

Forget Boston, 9/11 and Oklahoma City … Is False Flag Terror Even a REAL Historical Concept?

MERS: The Center of the Mortgage Scam

Former Enron CEO Jeff Skilling may be the latest beneficiary of the culture of pervasive permitted, even at times encouraged, crime. After being sentenced to prison for 24 years in the aftermath of Enron's spectacular 2001 bankruptcy, the former CEO may be released after serving well less than half of his term. As a result his prison term, which scheduled to end in 2028, may be cut by more than half as a result of a new agreement with the Department of Justice. It appears that AG Eric Holder is so busy not prosecuting Wall Street for being Too Big To Prosecute, he has decided it is far wiser to spend his time productively by commuting the sentences of convicted financial felons, because apparently there is nothing more important to do.

It was only yesterday that we wrote about comparable problems to those which Russian depositors may (or may not be?) suffering in Cyprus right, this time impacting wealthy Americans and their Swiss bank accounts, where as a result of unprecedented DOJ pressure the local banks will soon breach all client confidentiality and expose all US citizens who still have cash in the former tax haven under the assumption that they are all tax evaders and violators. And in the continuum of creeping wealth taxes which first started in Switzerland, then Cyprus, and soon who knows where else, there was just one question: "The question then is: how many of the oligarchs, Russian or otherwise, who avoided a complete wipe out and total capital controls in Cyprus, will wait to find out if the same fate will befall them in Switzerland? Or Luxembourg? Or Lichtenstein? Or Singapore?" Today we got the answer, and yes it was one of the abovementioned usual suspects. The winner is.... Lichtenstein.

This is what the world's "smartest" economist is calling for.