US Financial Markets
Marc M. Harris
the 20th of October in Shanghai at the APEC conference,
U.S. President George Bush told leaders of the 21 nations assembled
there for an annual summit meeting, that the terrorists who struck
the World Trade Center were trying to bring about a collapse of
world markets. It was the first time he had suggested that the terrorist
network Al Qaeda was seeking to "shatter confidence in the world
economic system." He then called on businesses around the world
to join the fight against terrorism, while acknowledging that new
security measures and limits on border crossings ran the risk of
undermining world commerce. "Terrorists want to turn the openness
of the global economy against itself," he said in a speech to chief
executives, who held their own meetings in parallel with those of
the government leaders. "We must not let them."
the same time, the entire U.S. Congress appears to have been "high"
on something other than anthrax spores when they reviewed the provisions
of H.R. 3004, Financial Anti-Terrorism Act of 2001 and S. 1510,
The U.S.A. Act of 2001. The foregoing is apparent because they are
about to authorize the theoretical equivalent of "hara-kiri"
with the U.S. financial markets as they rip up the United States
Constitution in their psychedelic panic and cocaine induced confusion
from the "aroma" of all those tainted funds that are about
to be forfeited under the newly expanded powers in the war against
proposals will substantially broaden the powers of U.S. law enforcement
agencies to seek the forfeiture of funds held in United States financial
institutions and/or foreign institutions in United States dollars.
is equivalent to a 100% tax.
these powers become enshrined in law, the United States financial
markets will witness one of the largest flights of capital in its
history. The Eurodollar and Eurobond markets were created by similar
knee jerk hysteria, only then it was a product of the cold war.
in this panic, the United States relies on the same feds that have
been derelict in their direction of the war on drugs for the past
two decades, the war on terrorism might be dead on arrival.
servicemen will once again have died in vain!
C.Y.A. "bureaurats" that brought us Ruby Ridge, Waco,
Wen Ho Lee, Robert Hansen, and COINTELPRO Nouveaux spent the better
part of the last decade emasculating the U.S. national intelligence
community and military establishment through their international
expansion of authority.
the Feds were busy opening offices in almost every country in the
world in their war against international crime, they failed to see
the real threats that America and the West were about to face. For
example, the 127 page U.S. Department of Justice’s National Money
Laundering Strategy For 2000 prepared in March of 2000 used the
term "terrorism" only 2 times in the text and once in
the U.S. Commission on National Security in the 21st
Century was preparing drafts in the late 1990’s to protect the United
States against future risks to the American populace, others were
thinking about how to maximize forfeitures.
these federal "bureaurats" have used their political acumen
and years of experience on Capitol Hill to blamestorm their past
failures on legislative and judicial obstacles rather than on their
own bumbling incompetence in an increasingly globalized, complex
same bureaucratic incompetents that should be the targets of the
first National Science Foundation grant on human euthanasia have
recycled their previous money laundering "vision" by inserting
the word terrorism a few more times and selling it to Congress.
What next? A grass roots campaign organized by Mothers Against Box
forfeitures will not lead to less terrorism! Forfeiture is 100%
taxation. 100% taxation is confiscation.
these proposals only confiscated the assets of terrorists, there
would be no risk of massive capital flight. Unfortunately, the special
interest lobbyists for the criminally negligent bureaucracy have
expanded these powers of forfeiture to almost any conceivable crime
committed in the United States or, for that matter, any part of
might argue that additional powers are required to deal with the
extraordinary events of the 11th of September. Fine,
but let us not lose sight of the fact that these broad powers, granted
under the auspices of National Security are meant to deal only with
extraordinary circumstances. Unfortunately, if not carefull, we
run the risk of institutionalizing extraordinary powers for dealing
with less than extraordinary circumstances, as conditions return
to a reasonable state of normalness.
Smith wrote in 1776 that if you tax (say, "forfeit") movable
capital it will be concealed or removed. Worse, some forms of capital
are more concealable and removable than others, so a tax on capital,
even on all capital, is necessarily non-uniform. Knowing the quantity
of mobile capital requires a deep inquisition as no people could
support. Today with instant electronic encrypted international fund
transfers, the availability to avoid and evade taxes on mobile capital
has outrun even Smith’s vivid insights.
criminally negligent bureaucrat’s response is to call for more enforcement,
and to scapegoat financial institutions. They also call for worldwide
thought control to give it moral authority and general support.
The end of this thought control is to criminalize commerce. The
moral of the story – To impose a false, self-serving morality on
others is itself immoral in the worst way.
have come far downhill since Adam Smith gave people credit for not
supporting deep inquisitions into private affairs. How he would
boggle at the inquisitions supported or tolerated today.
3004, Financial Anti-Terrorism Act of 2001 and S. 1510, The U.S.A.
Act of 2001 have nothing to do with the War On Terrorism. They have
everything to do with un-elected bureaucrats attempting to impose
a worldwide intelligence network with vast powers of search and
seizure that will do little to stop terrorism. They will simply
institutionalize another McCarthy style witch hunt against "the
usual group of suspects" that will do little to safeguard the
United States against future attacks.
the near term, the victim of these "latter day patriots"
will be the U.S. financial markets as H.R. 3004 and S. 1510 will
combine to start a chain reaction that will drain foreign deposits
from U.S. bank accounts, shift correspondent banking relationships
from US dollars to other major currencies, and lead the United States
further into economic recession. Sadly, the U.S. Coalition Empire
will be undermined from within by the economic erosion caused by
these "latter day patriots".
M. Harris (send
him mail) is a newsletter publisher as well as executive chairman
of The Harris Organisation, an international financial planning
firm with operations throughout the Americas.
© 2001 LewRockwell.com