From: All the News That Doesn't Fit <[EMAIL PROTECTED]>
Subject: [NYTr] The Lies of Alan Greenspan

The Nation - Sep 17, 2007
http://www.thenation.com/blogs/notion?pid=233482

The Lies of Alan Greenspan

by William Greider

Alan Greenspan has come back from the tomb of history to correct the
record. He did not make any mistakes in his eighteen-year tenure as
Federal Reserve chairman. He did not endorse the regressive Bush tax
cuts of 2001 that pumped up the federal deficits and aggravated
inequalities. He did not cause the housing bubble that is now in
collapse. He did not ignore the stock market bubble that subsequently
melted away and cost investors $6 trillion. He did not say the Iraq War
is "largely about oil."

Check the record. These are all lies.

Greenspan's testimony endorsing the Bush tax cuts was extremely
influential but now he wants to run away from it.  

In the instance of Iraq, Greenspan is actually correcting his own
memoir, The Age of Turbulence, which just came out. This weekend,
newspapers reported provocative snippets from the book, including this:
"I am saddened that it is politically inconvenient to acknowledge what
every everyone knows: the Iraq war is largely about oil."

Wow, talk about your "inconvenient truth." Greenspan was blithely
acknowledging what official Washington has always denied and the news
media faithfully ignored. "Blood for oil." No, no, no, that's not what
he meant, Greenspan corrected in a follow-up interview. [Bob Woodward
in Monday's Washington Post] He was only saying that "taking out Saddam
was essential" for "oil security" and the global economy.

Are you confused? Welcome to the world of slippery truth Greenspan has
always lived in. He was the Maestro, as Bob Woodward's loving portrait
dubbed him. Wall Street loved the Chairman best because the traders and
bankers knew he was always on their side and would come to their
rescue. The major news media treated him like an Old Testament prophet.
Whatever the chairman said was carved on stone tablets, even when it
didn't make any sense, as it often didn't.

Some of us who followed his tracks more closely, were not so kind.
Harry Reid, now the Democratic Senate leader, said Greenspan was "one
of the biggest political hacks in Washington." Amen. I called him "the
one-eyed chairman" who could always spot reasons to stomp on the real
economy of work and production, but was utterly blind to the
destructive chaos in the financial system. No matter. The adoration of
him was nearly universal.

Until now. The economic consequences of his rule are accumulating and
even the dullest financial reporters are stumbling on crumbs of truth
about Greenspan's legendary reign. It sowed profound and dangerous
imbalances in the US economy. That's what happens when government power
tips the balance in favor of capital over labor, favoring super-rich
over middle class and poor, then holds it there for nearly a generation.

Things get out of whack and now the country is paying big time. A pity
reporters and politicians didn't have the nerve to ask these questions
when Greenspan was in power.

He retired only a year ago, but is already trying to revise the
history. To explain away blunders that are now a financial crisis
facing his successor. To rearrange the facts in exculpatory ways. To
deny his right-wing ideological bias and his raw partisanship in behalf
of the Bush Republicans.

The man is shrewd. He can see the conservative era he celebrated and
helped to impose upon the American economy is in utter ruin. He is
trying to get some distance from it before the blood splashes all over
his reputation.   Of course, he also came back to cash in--an $8
million advance for a book that is sure to be a huge bestseller. I
don't want to be unkind, but Greenspan could have avoided all the
embarrassing questions if his book was posthumous.

***

From: All the News That Doesn't Fit <[EMAIL PROTECTED]>
Subject: [NYTr] Iraq: Petraeus Helps Destroy Bush's "Proxy War" Claim

IPS - Sep 17, 2007
http://www.ipsnews.net/news.asp?idnews=39294

Petraeus Helps Destroy Bush's "Proxy War" Claim 

by Gareth Porter

WASHINGTON, Sep 17 (IPS) - In his prepared statement to the U.S. House
Foreign Affairs and Armed Services committees last week, Gen. David
Petraeus claimed that Iran is using the Quds Force to turn Shiite
militias into a "Hezbollah-like force" to "fight a proxy war against
the Iraqi state and coalition forces in Iraq".

But Petraeus then shattered that carefully constructed argument by
volunteering in answering a question that the Quds Force, an elite unit
of the Iranian Revolutionary Guard Corps, had essentially left Iraq.
"The Quds force itself, we believe, by and large those individuals have
been pulled out of the country as have the Lebanese Hezbollah trainers
that were being used to augment that activity..."

Petraeus's contradictory statements on the Quds force are emblematic of
an administration propaganda line that has essentially fallen apart
because it was so obviously out of line with reality. Nine months after
the George W. Bush administration declared that it was going to go
after Iranian agents in Iraq who were threatening U.S. troops, the U.S.
military still has not produced any evidence that the Quds Force
operatives in Iraq were engaged in assisting the militias fighting
against U.S. troops.

The U.S. military command in Iraq has failed to capture a single Quds
Force member whom it could link to the Shiite militias. And the
evidence that has emerged over the past nine months about Shiite
militias and their relationship to Iran suggests that Quds force
personnel in Iraq never had the mission of assisting Shiite militias,
as claimed by the Bush administration.

It appears that an increasing number of military intelligence officers
in Iraq have concluded that the Quds force has been steering clear of
working directly with Shiite militias attacking U.S. troops, in order
to avoid giving the Bush administration a pretext for aggression
against Iranian territory.

In a military briefing presented in Baghdad on Feb. 11, an unnamed U.S.
official stated flatly that weapons were being smuggled into the
country by the Quds Force, but the briefers failed to present any
specific evidence to back up the assertion.

Since that briefing, the U.S. military command has captured the alleged
deputy head and key logistical officer of the main Iraqi EFP, or
armour-penetrating explosives, network and a Hezbollah operative who
was a liaison with the network, as well as a number of what it called
"suspected members" or "suspected leaders" of a "secret cell terrorist
network known for facilitating the transport of and EFPs from Iran to
Iraq".

But the interrogations of these detainees have not led to the capture
of a single Iranian official. Nor has the military been able to
identify a link between any Iraqi militia member and any Iranian
official. On Jul. 6, Maj. Gen. Rick Lynch, commander of U.S. operations
south of Baghdad, told reporters his troops had not captured "anybody
that we can tie to Iran".

Even more devastating to the "proxy war" line, Lynch's spokesperson,
Alayne Conway, acknowledged on Aug. 19 that they had not caught anyone
supplying arms from Iran to the Iraqi Shiite militias.

There has long been some evidence, however, of a link between Shiite
networks for procuring EFPs and other arms and Lebanese Hezbollah. The
leader of a Madhi Army group that was carrying out attacks against
British forces, Ahmad Jawwad al-Fartusi, who was arrested in September
2005, had lived in Lebanon for several years and was known to have
personal contact with Hezbollah, according to a Mar. 27 New York Times
report.

Along with evidence of a growing relationship between Hezbollah and
Moqtada al-Sadr's army, which has now culminated in a Sadr office in
Beirut, such past links between the two Shiite groups suggest that
Hezbollah's assistance to the Shiites need not have been ordered by
Tehran.

U.S. and British officials have acknowledged in the past that the EFP
technology being used in Iraq might have entered Iraq from Hezbollah in
Lebanon rather than from Iran.

The premise that the Quds Force agents in Iraq were involved in
training Shiites to carry out operations against U.S. troops was
shattered when Lynch told reporters Aug. 19 that the Iranians were
"facilitating the training of Shiite extremists" militiamen in Iraq.
That clearly implied that the training was being done by Hezbollah.

The Washington Post and other news outlets quoted Lynch's statement but
nevertheless reported that Lynch had charged that Iranians were doing
the training. A spokesperson for Lynch confirmed to IPS that Lynch had
not made any allegation about Iranians training Shiites in Iraq.

Petraeus dealt the final blow to the notion of a Quds Force training
role when he noted that the Hezbollah trainers had also been withdrawn
from the country.

The charge that Iran was using the Quds force to fight a proxy war was
an effort to raise tension with Iran by suggesting a potential reason
for U.S. attack against Iran. Similarly, the pressure for targeting the
Quds Force in Iraq late last year came from senior officials in the
Bush administration who wished to demonstrate U.S. resolve to confront
Iran, according to an in-depth account of the origins of the plan by
the Washington Post's Dafna Linzer published Feb. 26.

That policy was regarded with "scepticism" by the intelligence
community, the State Department and the Defence Department when it was
proposed, Linzer wrote, because of the fear it would contribute to an
escalation conflict with Iran.

"This has little to do with Iraq," a senior intelligence officer told
Linzer. "It's all about pushing Iran's buttons. It's purely political."

[Gareth Porter is an historian and national security policy analyst.
His latest book, "Perils of Dominance: Imbalance of Power and the Road
to War in Vietnam", was published in June 2005.]









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