FROM THE DESK OF J. ORLIN GRABBE: JULY 15, 1996
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The Clinton Crash
by J. Orlin Grabbe
In its immodest way, the Clinton administration
has long rushed forth to claim credit for every little
government economic statistic that looks positive. Not
that it can be said to otherwise take statistics very
seriously, given its blatant fibs like the one that
"Republicans cut Medicare benefits". (Republicans only
cut the size of projected increases. Clinton explained that
one by telling Wolf Blitzer that it was all the fault of
journalists and their use of language, and that he
personally was "shocked" when he came to Washington
and discovered this. But Clinton wasn't shocked enough
to do anything about those Democratic television ads.)
But how would Clinton explain a stock market
crash? Having taken credit for everything else that
happens in the economy, how can he avoid responsibility
for this also? What spin will he pick to push the blame
on someone else? Will a crash be the result of
Republicans opposing his government plan to deal with
the heinous problem of school truancy? Will it be the
fault of some underling like Craig Livingstone, operating
out of control because no one knew he was there (even
when they had their pictures taken with him)?
Perhaps Clinton will go on television to proclaim
that the crash is a "buying opportunity", just like those
pompous commentators interviewed almost daily on
CNBC. After all, when clueless household purchasers of
mutual funds declare they are "investing for the long run,"
it should not come as any surprise that a majority of
voters would rate Clinton as having untrustworthy
character yet plan to vote for him anyway. A public that
would rush to buy inflated stock market high-flyers
(including the thirty stocks in the Dow Jones Industrial
Average) should not be expected to spend their political
capital any more wisely. They are sure Clinton and their
broker understand their problems.
While the public keeps its head in the sand,
Democratic bigwigs view Clinton as a ticking time bomb.
Some of them even gave up their July 4 holiday, the
politician's favorite, to plan for the post-Clinton world.
They want Bill out of the way as soon as possible, so he
won't blow up in their faces in November. Meanwhile,
the Clintons themselves have descended into a murky
unreality of frenzied media events, hoping all their
problems will somehow disappear. In "Clinton's Cocaine
Habit" I reported on the President's consumption of 5
plus lines of cocaine a day. But Hillary has her drug
problems also: sagging facial features brought about by
the heavy use of tranquilizers ("don't worry, be happy").
The Democrats will hope to dump a stock market
crash and all other bad political news on the Clintons,
while distancing themselves from the pair. This should
become especially popular as it becomes public that the
White House "Hit List" (labeled just that way in the
White House Office Data Base, WHODB), includes not
only Republicans but also some prominent Democratic
politicians and journalists.
Democrats will have assistance in wishing Bill a
speedy exit. For the days of buried evidence are over. It is
said that someone download the entire White House
Office Data Base, as well as the Secret Service Data Base,
and copies of the files requested from the FBI data base,
and turned them all over to the Special Prosecutor,
Kenneth Starr. (And only a naif would believe James
Steward's interpretation in The New Yorker that Starr will
withhold his evidence and indictments till after the
election. Why ever would Starr want to leave the good
voters of America in ignorance?)
It's not all fun and games for the Republicans
either. Republican bigwigs are desperately trying to
figure out how they can get rid of a distinct liability--
namely, Bob Dole. Well, the Fifth Column got Dole to
resign from the Senate. Surely the bigwigs can handle the
little matter of denying Dole the nomination all by
themselves. Or would the Republicans prefer to commit
political suicide even while Clinton crumbles?
How will history explain the crash? Has the
market only foreshadowed the "leadership vacuum" to
emerge as Starr indicts Hillary and Clinton subsequently
resigns? One seriously doubts history will treat Clinton
as leader that kindly. He has too much baggage. As if
Whitewater-Travelgate-Fostergate-Filegate were not
enough, there is also the little issue of Clinton's
involvement in the Mena drugs and arms smuggling. This
isn't going away either, because the birds in Arkansas
have begun to sing.
Accuracy in Media (AIM), an outlet for Mossad
propaganda, has long dumped on the Vince Foster story
as related by Jim Norman and me for the simple reason
that Foster was spying for Israel. Likewise, to my
observation, the Mossad has done more than even the CIA
to bury the truth about Mena, because of the pronounced
Mossad involvement in arms and drug smuggling and
money laundering between Panama and Arkansas. Jim
Leach's House Banking Committee recently dropped its
probe into Mena on the advice of its new consultant, Jack
Blum, himself an investigator with Mossad connections as
well as a spreader of lies. (I know what he said about
As I noted in "Some Observations on the Non-
News", the Mena operation has been largely shifted to
Montana, and (as was true in Arkansas) the state governor
has a hand in the business. In recent days Montana
Republican Governor Marc Racicot has been out
demanding that anyone who has implied he was in any
way involved in drug dealing retract their statements.
Well, Mr Racicot, if I were governor I would shut my
own mouth, since you will undoubtedly find it a less
unpleasant experience when the ton of shit I smell coming
lands on your head. In an interview in the current issue of
Media Bypass, Charles S. Hayes (the "Angel of Death")
notes that "No one in the press reported about the huge
influx of narcotics into that state [Montana]. It would not
surprise me nor anyone in the federal government if in the
near future the governor of Montana is indicted for
complicity in this activity."
Nor would it surprise anyone to see FBI agents
indicted in Montana and New Orleans for involvement in
drug trafficking. Louis Freeh, who explained the errant
use of his files as abuse of the FBI by the White House
will perhaps now explain the errant use of his agents as
abuse of the FBI by the Cali cartel.
Will history say the stock market crash and
ensuing banking crisis derived from strains created by
massive shifts in the flows of funds connected with the
international arms and drug trade? This flow of funds is
the common thread that ties corrupt politicians to corrupt
current and ex-government officials. Certainly there are
enough politicians and banks in trouble.
The banks in one country noted as a haven for
flight capital found an innovative way to stem the $20
billion hemorrhage of their deposits. (Did these banks
have a small security problem? Some of them cut their
24-hour modem access down to 15 minutes. Naturally
their corporate customers were not pleased.) But these
banks managed to find a strong lender of last resort and to
trade sovereignty for solvency. But such solutions are not
available to everyone.
Take Credit Lyonnaise. CL is said to be looking
for a loan of $2 to $3 billion--it needs a capital infusion
desperately. No takers. The Bank of England ships
hundreds of millions of dollars in gold bullion to an irate
Korea in the continuing arms-money-laundering saga
there. No embarrassing questions, please. Investigators
at Citibank wonder how Raul Salinas of Mexico was able
to launder so much money through that institution.
Citibank says it has no idea: these things just happen.
Money laundering at Chase lead to a forced merger with
Chemical. Will the First National Bank of Anchorage and
Norwest Bank of Montana be next? Sumitomo, missing a
couple billion dollars, has to maintain the pretense it
doesn't launder heroin money. But every international
banker worth his salt knows otherwise.
Some think the stock market is going to 10,000.
Some think Bill Clinton will be the Democratic nominee
this November. Some think Vince Foster wasn't a spy for
Israel. Some think official government agencies don't
deal drugs. Some think the FBI is a chartered
organization. Some think the Basle Committee has solved
all international banking crises.
Some had better get ready for a rude awakening.
July 15, 1996
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