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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