Wednesday, November 17, 2010

personal finance blog

Dear trav:

I used to think the same as you regarding the unconnectedness of things, but not anymore -- and not just because of one or two articles but because I've thought deeply about many things I've been reading with an open mind. Oddly, things do fit together, not in a conspiratorial way as meant today, but in a sort of horrible cascade of logic if one keeps track long enough. I also feel frustrated depressed and angry but I think it's important to keep our wits about us and know everything we can because I believe we're going to have to fight for our lives, one way or another. dz

More articles (sorry):

The JFK Assassination and 9/11: the Designated Suspects in Both Cases
by Peter Dale Scott Global Research, July 5, 2008 

Global Research recently published my essay entitled  9/11, Deep State Violence and the Hope of Internet Politics (appended below at *&*) In this article, I argue that 9/11 should be analyzed as a deep event (an event not fully aired or understood because of its intelligence connections) and above all as one of a series of deep events which from time to time have frustrated peace initiatives or become pretexts for war.The War Conspiracy. As The War Conspiracy: JFK, 9/11, and the Deep Politics of War, it is due to be published by the Mary Ferrell Foundation Press in August 2008.

I wish to summarize again the first striking similarity between 11/22/63 and of 9/11/01: the dubious detective work on those two days. Less than fifteen minutes after the President’s assassination, the height and weight of Kennedy’s alleged killer was posted.

1 Before the last of the hijacked planes crashed on 9/11, the FBI told Richard Clarke that they had a list of alleged hijackers.2

In the case of Oswald, within fifteen minutes of the assassination and long before Oswald was picked up in the Texas Theater, Inspector Sawyer of the Dallas police put out on the police radio network, and possibly other networks, a description of the killer – "About 30, 5’10", 165 pounds."

3 As noted, this height and weight exactly matched the measurements attributed to Lee Harvey Oswald in Oswald’s FBI file, and also in CIA documents about him.4

The announced height and weight were however different from Oswald’s actual measurements, as recorded by the Dallas police after his arrest: 5’9 1/2", 131 pounds.

5 More importantly, there is no credible source for the posted measurements from any witness in Dallas. (The witness said to have spotted him, Howard Brennan, failed to identify Oswald in a line-up.)6 This leaves the possibility that the measurements were taken from existing files on Oswald, rather than from any observations in Dallas on November 22. If so, someone with access to those files may have already designated Oswald as the culprit, before there was any evidence to connect him to the crime.

A similar situation pertains to the alleged hijackers on 9/11. For example, shortly afterwards men in Saudi Arabia complained that "the hijackers' `personal details’" released by the FBI -- "including name, place, date of birth and occupation -- matched their own."

7 One of them, Saeed al-Ghamdi, claimed further that an alleged photograph shown on CNN (of an alleged Flight 93 hijacker with the same name) was in fact a photograph of himself. He speculated "that CNN had probably got the picture from the Flight Safety flying school he attended in Florida."8

If the above information is accurate, then the details posted by the FBI and CNN about the alleged hijackers cannot have derived from the events of 9/11, with which the survivors in Saudi Arabia would appear to have been uninvolved. Once again this leaves the strong possibility that the details were taken from existing files, rather than from empirical observations on September 11.


And some of the hijackers, like Lee Harvey Oswald, may have been in CIA files for a special reason: because the CIA had an operational interest in them.

Internal CIA Evidence of Operational Interest in Oswald and the Hijackers

I have speculated that Oswald, like the al-Qaeda trainer Ali Mohamed, might have been a double agent reporting to the FBI about the terrorist group (Alpha 66) with which some law enforcement officers associated him.

I would like now to discuss more unequivocal evidence, from internal CIA records, about an operational

CIA interest in first Oswald and later two of the alleged al-Qaeda hijackers, Nawaz al-Hazmi and Khalid al-Mihdar. In 2001 as in 1963 the CIA inexplicably withheld information about the subjects from the FBI, which ought categorically to have received it. The anomalies are extreme.

This is now easy to show in the case of Oswald. On October 10, 1963, six

weeks before the assassination of John F. Kennedy, CIA Headquarters sent out two messages about Oswald, a teletype to the FBI, State, and Navy, and a cable to the chief of the CIA’s Mexico City station. Both messages contained false and mutually contradictory statements, and also withheld known facts of great potential importance.

10 The teletype to the FBI withheld the obviously significant information that Oswald had reportedly met in Mexico City with a Soviet Vice-Consul, Valeriy Kostikov, who was believed by CIA officers to be an officer of the KGB.11

One CIA officer, Jane Roman, helped draft both messages. In 1995 she was confronted by two interviewers with irrefutable evidence that she had signed off on erroneous information about Oswald in the CIA cable to Mexico City. After much questioning, she finally admitted, "I’m signing off on something I know isn’t true." One of the interviewers, John Newman, then asked her, "‘Is this indicative of some sort of operational interest in Oswald’s file?’ ‘Yes,’ Roman replied. ‘To me it’s indicative of a keen interest in Oswald held very closely on the need-to-know basis.’" She later repeated, "I would think there was definitely some operational reason to withhold it [the information at CIA headquarters on Oswald], if it was not sheer administrative error, when you see all the people who signed off on it."


Other CIA officers withheld important information from the FBI in January 2000, with respect to Khalid al-Mihdar, who would later be identified as one of the al-Qaeda hijackers on September 11, 2001. The NSA overheard on a Yemeni telephone about a meeting in Malaysia which al-Mihdar would attend, along with Tewfiq bin Attash, the mastermind of the fatal attack on the USS Cole.

13 It notified the CIA but not the FBI. In consequence

[Khalid al-Mihdar’s] Saudi passport – which contained a visa for travel to the United States – was photocopied [in Qatar] and forwarded to CIA headquarters. The information was not shared with FBI headquarters until August 2001. An FBI agent detailed to the Bin Ladin unit at the CIA attempted to share this information with colleagues at FBI Headquarters. A CIA desk officer instructed him not to send the cable with this information. Several hours later, this same desk officer drafted a cable distributed solely within CIA alleging that the visa documents had been shared with the FBI.


Lawrence Wright, reviewing this and other significant anomalies, reported in

The Looming Tower the belief among FBI agents following bin Laden "that the agency was protecting Mihdar and [his companion, the alleged 9/11 hijacker Nawaz al-] Hazmi because it hoped to recruit them," or alternatively that "the CIA was running a joint venture with Saudi intelligence" using al-Mihdhar and al-Hazmi.15 Wright himself speculated in a companion essay he wrote for The New Yorker that "The CIA may also have been protecting an overseas operation and was afraid that the F.B.I. would expose it."16


The Consequences of the CIA’s Withholding of Evidence

As just noted, the CIA, in its teletype to the FBI of October 10, 1963, withheld the information that Oswald had reportedly met with a KGB officer, Valeriy Kostikov. Former FBI Director Clarence Kelley in his memoir later complained that this failure to inform the FBI was the major reason why Oswald was not put under surveillance on November 22, 1963.

17 In other words, the withholding enabled Oswald to play whatever role he played on that fateful day, even if it was only to become a designated patsy.

FBI officials are even more bitter about the consequences of the withholding of information about al-Mihdar:

They didn’t want the bureau meddling in their business – that’s why they didn’t tell the FBI….They purposely hid from the FBI, purposely refused to tell the bureau that they were following a man in Malaysia who had a visa to come to America….And that’s why September 11 happened. That is why it happened….They have blood on their hands. They have three thousand deaths on their hands.


But the CIA withheld information from the FBI about bin Attash (already the subject of a criminal investigation) as well, even when asked by an FBI agent, Ali Soufan, about bin Attash and the Malaysia meeting. According to Wright,

The agency did not respond to his clearly stated request. The fact that the CIA withheld information about the mastermind of the

Cole bombing and the meeting in Malaysia, when directly asked by the FBI, amounted to obstruction of justice in the death of the seventeen American sailors."19

In late August 2001, only days before 9/11, FBI agent Steve Bongardt, complaining about the CIA’s withholding of information about al-Mihdar, correctly predicted in an angry email to the CIA’s bin Laden unit that "someday someone will die."



The CIA’s Dishonest Efforts to Cover-Up

From the moment Congress, in the 1970s, began to evince an interest in the Kennedy assassination, former CIA officer David Phillips became a vigorous defender of the CIA’s performance. With respect to false information about Oswald in CIA cables both to and from Mexico City (where Phillips was in charge of Cuban affairs for the CIA station), Phillips’s first response was to dismiss Oswald as "a blip" of no interest.


A similar defense of the CIA’s failure to act on al-Mihdar was offered to the Congressional Joint Inquiry into 9/11 by the Director of the CIA’s Counterterrorism Center, Cofer Black: "I think that month we watchlisted about 150 people."

22 The same defense was offered by Dale Watson, the FBI’s former counterterrorism chief:

There were a lot of red flags prior to 9/11….So it’s a mass of information and it’s a sea of threats, and it’s like working against a maze. If you know where the end point of a maze is, it’s certainly easier to work your way back to the starting point than trying to go through the maze and sort out all the red flags.


The problem with this excuse is that both Oswald and al-Mihdar were singled out for special CIA attention, not left floating in a sea of red flags. The cable to Mexico City which Jane Roman signed off on was not handled routinely, it was sent for signature to the CIA’s Assistant Deputy Director for Plans, Thomas Karamessines. And in the case of al-Mihdar in Malaysia, back in 2000

CIA leaders were so convinced about the potential significance of the al Qaeda meeting in Malaysia, they not only set up surveillance of it, but provided regular updates to the FBI director [Louis Freeh], the head of the CIA [George Tenet], and the national security advisor [Samuel Berger].


That Freeh and Berger were being notified at the top about the Malaysia meeting (at the same time that the regular FBI bureaucracy was being cut out) is confirmed in accounts by Terry McDermott and Philip Shenon.


CIA officials testified falsely to congressional committees with respect to both Oswald and al-Mihdar. James Angleton was asked by the staff of the House Select Committee on Assassinations about a memoir written by the CIA’s station chief in Mexico City, Win Scott, and later personally retrieved for the Agency after Scott’s death by Angleton himself. Angleton testified that Scott’s "manuscript was fictional and did not include a chapter on Oswald." In fact, according to Jefferson Morley, "The only surviving manuscript is clearly nonfictional and does have a chapter on Oswald."


Both George Tenet and Cofer Black testified before the Congressional Joint Inquiry into 9/11 that the FBI

had been granted access to the information linking al-Mihdar and Tewfiq bin Attash (alias Khallad), the mastermind of the Cole bombing. The 9/11 Commission, after a lengthy review of the matter, concluded "this was not the case."27


The CIA, Oswald, and Al-Mihdar: Suppression of Vital Records

That the CIA regards its relationship to the suspects Oswald and al-Mihdar as sensitive is further illustrated by its suppression of vital evidence with respect to both. Although in the 1990s all government agencies were required by law to submit their Oswald-related documents to the Assassination Records Review Board, the CIA has been vigorously resisting pressure to do this in the case of former CIA officer George Joannides. In 1963 Joannides was the case officer for AMSPELL, the CIA’s operation in support of the Cuban exile group DRE (Directorio Revolucionario Estudiantil). In August 1963 the DRE was in contact with Oswald and participated with him in a radio broadcast which was later distributed with CIA help throughout Latin America.


According to Jefferson Morley, "four decades after the fact, the most important AMSPELL records are missing from CIA archives – perhaps intentionally." Monthly reports on DRE activities were filed by CIA case officers Ross Crozier and William Kent, and these records were declassified by the ARRB for the periods September 1960-November 1962 and after May 1964.

But the board was unable to locate any monthly AMSPELL reports from December 1962 to April 1964. There was a seventeen-month gap in the AMSPELL records, which coincided exactly with the period in which George Joannides handled the group.


With respect to 9/11, all that is known about suppression so far has to do with the public record. Here it is striking that the Report of the Joint Inquiry by Congress into 9/11 has one glaring redaction of twenty-eight pages, dealing with "sources of foreign support for some of the September 11

th hijackers while they were in the United States." Press reports have specified that this refers to Saudi money which reached al-Mihdar and al-Hazmi in 2000 while they were in San Diego. According to committee cochair Senator Bob Graham,

The draft contained a twenty-eight page passage that detailed evidence that Saudis in the United States – Saudi government "spies," Graham called them – had provided financial and logistical support to [al-Mihdar and al-Hazmi] while they lived in Southern California.


Similarly the 9/11 Commission failed to deal with the information on an FBI "hijacker timeline" that al-Mihdar and al-Hazmi were met at the airport on their first arrival in the United States by Omar al-Bayoumi, the transmitter of the Saudi funds, whom Graham claimed was obviously "a low-ranking Saudi intelligence agent."

31 The FBI findings were leaked in an early story in Newsweek:

At the airport, they were swept up by a gregarious fellow Saudi, Omar al-Bayoumi, who had been living in the United States for several years. Al-Bayoumi drove the two men to San Diego, threw a welcoming party and arranged for the visitors to get an apartment next to his. He guaranteed the lease, and plunked down $1,550 in cash to cover the first two months' rent.


One month later, "In January 2003, Graham and the other members of the committee were …the focus of a criminal investigation by the FBI into whether someone on the panel had leaked classified information."


The 9/11 Commission avoided this sensitive area. It cited the FBI Chronology a total of 52 times in its footnotes, for example at 493n55, concerning al-Mihdar’s travel from Yemen to the Malaysian meeting. But it suppressed the FBI’s report that al-Bayoumi met al-Mihdar and al-Hazmi on their arrival; and it substituted what Shenon calls an "improbable tale" supplied by al-Bayoumi himself: namely, that he had run into the two men two weeks later by accident "at a halal food restaurant" near Los Angeles.


It is clear that two members of the 9/11 Commission staff who redacted this part of the report – Dietrich Snell and Philip Zelikow – were concerned to tone down what junior staffers considered to be "explosive material" on the Saudis.

35 Shenon tells how this section of the 9/11 report was rewritten by Snell and Zelikow, until the text "removed all of the most serious allegations against the Saudis."36

But Snell and Zelikow may have been protecting the CIA as well as the Saudis. We have already noted how Lawrence Wright, looking at the extraordinary CIA record on withholding information about al-Mihdar and al-Hazmi, concluded, "It is also possible, as some FBI investigators suspect, the CIA was running a joint venture with Saudi intelligence."




It is clear, as everyone who has studied these matters closely and impartially concurs, that there have been cover-ups of the CIA’s relationships to first Oswald and later al-Mihdar – cover-ups which in both cases have not yet been adequately resolved.

A reasonable conclusion from the available evidence is that the cover-ups were in order to conceal prior CIA operational interest in the designated subjects, just as in the case of Ali Mohamed in the early 1990s. It could of course be a coincidence that people of operational interest to the CIA became designated subjects in the deep events of JFK and 9/11. Another, more disturbing possibility is that those responsible for these events knew of the CIA’s operational interest, and exploited it in such a way as to ensure that the government would be embarrassed into covering up what really happened on those days.

A lot of books about 9/11, including my own, have focused on the roles played by Bush, Cheney, and Rumsfeld on that day. But it is clear that 9/11 involved a USG connection to at least one figure (Ali Mohamed) so sensitive that it had been covered up from the time of the Nosair murder in 1990 and the first World Trade Center bombing in 1993. It is probable that Oswald’s covert USG connections also dated back to the time of his strange release from the U.S. Marine Corps in 1959, enabling him to travel to the Soviet Union.


In short there is a substratum of covert operations underlying both events that antedates the presidencies in which they occurred. Thus one should not expect the cover-up of 9/11 in the G.W. Bush administration to dissipate simply because the Democrats take over the White House, just as the Johnson administration’s cover-up of the Kennedy assassination did not dissipate with the election of Richard Nixon.


This is said not out of despair, but out of belief in the ultimate resilience and good sense of the American people. The analysis in this book is that America’s involvement in two disastrous wars – first Vietnam and later Iraq – was not an outcome of the people’s will, but rather in large part because of deep events that were used to manipulate that will. Thus this analysis is not an attack on America, but on that manipulative mindset that has twice succeeded in maneuvering America into war.

This dominant mindset is not restricted to intelligence agencies, though it is largely rooted there. Over time it has spread into other parts of government, and has also corrupted large sections of the media and even universities. That the mindset is widespread does not however make it either omnipotent or invincible.

It is important to identify the dominant mindset clearly, if we are ever going to displace it. It is important also to recognize that the dark topics discussed in this book are not representative of America as a whole. In the half century since the CIA’s first adventures in Burma and Laos, America has continued to be, as in the two centuries before it, a source of life-enhancing innovations, such as the computer and the internet.

As Amy Chua has written in her book

Day of Empire,

If America can rediscover the path that has been the secret to its success since its founding and avoid the temptations of empire building, it could remain the world’s hyperpower in the decades to come – not a hyperpower of coercion and military force, but a hyperpower of opportunity, dynamism, and moral force.


I have tried to suggest in this book that the key to this rediscovery is the

identification and displacement of the manipulative forces that have maneuvered America, almost unsuspectingly, into two unnecessary and disastrous wars.

If there is any merit to my analysis, then, to isolate those forces, we must press for the truth about both the Kennedy assassination and 9/11.



Transcript of Dallas Police Channel Two, 12:44 PM; cf. Channel One 12:45 PM,; Warren Report 5, 17 Warren Commission Hearings 397, 23 Warren Commission Hearings 916.


Clarke, Against All Enemies, 13-14. The list of 19 names, accepted without question by the 9/11 Commission Report, was given by the FBI to the press on September 14, 2001 (Daily Telegraph, September 15, 2001,


Transcript of Dallas Police Channel Two, 12:44 PM; cf. Channel One 12:45 PM,; Warren Report 5, 17 Warren Commission Hearings 397.


E.g. Dallas FBI Report from John Fain, May 12, 1960, 17 Warren Commission Hearings 704, NARA #157-10006-10213 ("Height: 5’10" Weight: 165 lbs." [inaccurate description supplied by Marguerite Oswald]); CIA HQ Cable DIR 74830 to Mexico City, 10 Oct 1963, NARA #104-10015-10048, reproduced in John Newman, Oswald and the CIA (New York: Carroll & Graf, 1995), 512 ("five feet ten inches, one hundred sixty five pounds").


Fingerprint card dated "11-25-63," 17 Warren Commission Hearings 308.


Warren Report 5, 144; Sylvia Meagher, Accessories After the Fact (Mary Ferrell Foundation Press, 2006), 10-13, 78n. After seeing Oswald twice on television, Brennan picked out Oswald in a second lineup (Warren Report, 143).


Daily Telegraph, September 23, 2001,


Guardian, September 21 2001, :" Abdulaziz

Al-Omari has also come forward to say he was not on the flight from Boston that crashed into the north tower of the World Trade Centre. An electrical engineer who works in Saudi Arabia, Mr Al-Omari said he was a student in Denver during the mid-1990s, and that his passport and other papers were stolen in a burglary in the US five years ago. … `The name is my name and the birth date is the same as mine,’ he told Asharq al-Aswat, a London-based Arabic newspaper. `But I am not the one who bombed the World Trade Centre in New York.’"


Daily Telegraph, September 23, 2001,


On October 4, 2001, the FBI issued a press release showing what appeared to be photos from surveillance videotape of two hijackers, Mohammed Atta and Abdulaziz Al-Omari, entering Portland Jetport on the morning of September 11, 2001 (FBI Press Release, October 4, 2001, ). If valid, these would constitute evidence from the event itself. However the photos are anomalous, in that they show two time superimposed stamps, one showing 5:45, the other showing 5:53. The photos are not cited as evidence in the 9/11 Commission Report. On July 22, 2004, the date of the release of the 9/11 Commission Report, CNN aired what they said was surveillance videotape of two hijackers, Majed Moqed and Khalid al-Mihdar. entering "at one of the security screening points at Dulles International" (CNN, ). The authenticity of the videotape has been challenged, however, because it lacks the time and date and location identification normally burned into a surveillance video image (Rowland Morgan and Ian Henshall,

9/11 Revealed: The Unanswered Questions [New York: Carroll and Graf, 2005], 117-19).


I have argued that the conflicting messages were part of a so-called "marked card" or "barium meal" test to determine if and where leaks of sensitive information were occurring. This was a familiar technique, and was the responsibility of the CI/SIG or Counterintelligence Special Intelligence Group which drafted the two cables. See Peter Dale Scott, Deep Politics II: The New Revelations in U.S. Government Files,1994-1999 (Ipswich, MA: Mary Ferrell Foundation Press, 2007), 17-18, 92; also Peter Dale Scott, "Oswald and the Hunt for Popov's Mole," The Fourth Decade, III, 3 (March 1996), 3;


Peter Dale Scott, Deep Politics II, 30-33.


Jefferson Morley, Our Man in Mexico: Winston Scott and the Hidden History of the CIA (Lawrence, KA: University Press of Kansas, 2008), 196-98. See Peter Dale Scott, Deep Politics II, 30-33.


Lawrence Wright, The Looming Tower: Al-Qaeda and the Road to 9/11 (New York: Knopf, 2006), 310.


9/11 Commission Report, 502n44.


Wright, The Looming Tower, 312, 313.


Lawrence Wright, "The Agent," New Yorker, July 10 and 17, 2006, 68.


Clarence M. Kelley, Kelley: The Story of an FBI Director (Kansas City: Andrews, McMeel, & Parker, 1987), 268.


James Bamford, A Pretext for War: 9/11, Iraq, and the Abuse of America’s Intelligence Agencies (New York: Doubleday, 2004), 224.


Wright, The Looming Tower, 329. In his New Yorker story (p. 70), Wright wrote that "By withholding the picture of Khallad [bin Attash]…the C.I.A. may in effect have allowed the September 11th plot to proceed."


9/11 Commission Report, 271; Wright, The Looming Tower, 353-54.


David Atlee Phillips, Nightwatch, 139; quoted in Morley, Our Man in Mexico, 184. Morley observes that in the 1970s Phillips offered a total of "four not entirely consistent versions of the story of Oswald’s visit to Mexico City."


J. Cofer Black testimony before 9/11 Congressional Joint Inquiry, 107th Cong., 2nd Sess., July 24, 2003.


Dale Watson testimony before Joint Inquiry, 107th Cong., 2nd Sess., September 26, 2002.


Amy B. Zegart, Flying Blind: The CIA, the FBI, and the Origins of 9/11(Princeton, NJ: Princeton UP, 2007), 117.


Terry McDermott, Perfect Soldiers: The Hijackers: Who They Were, Why TheyDid It (New York: HarperCollins, 20050, 294n45; Philip Shenon, The Commission: The Uncensored History of the 9/11 Investigation (New York: Twelve/Hachette, 2008), 141.


Morley, Our Man in Mexico, 7, 294.


9/11 Commission Report, 267.


Peter Dale Scott, Deep Politics and the Death of JFK (Berkeley: University of California Press, 1998), 81-86; Morley, Our Man in Mexico, 170-77.


Morley, Our Man in Mexico, 177.


Shenon, The Commission, 50-51.


Larisa Alexandrovna, "FBI documents contradict 9/11 Commission report," RawStory, February 28, 2008, (met at the airport); Shenon, The Commission, 52 (al-Bayoumi). Al-Bayoumi "apparently did work for Dallah Avco, an aviation-services company with extensive contracts with the Saudi Ministry of Defense and Aviation, headed by Prince Sultan, the father of the Saudi ambassador to the United States, Prince Bandar" ("The Saudi Money Trail," Newsweek, December 2, 2002,


"The Saudi Money Trail," Newsweek, December 2, 2002. The FBI "hijacker timeline" was released by the FBI on February 4, 2008. See Larisa Alexandrovna, "FBI documents contradict 9/11 Commission report,, February 28, 2008,


Shenon, The Commission, 54.


9/11 Commission Report, 217; Shenon, The Commission, 52-53.


Shenon, The Commission, 398.


Shenon, The Commission, 398.


Wright, The Looming Tower, 313. Looking at the same evidence, Christopher Ketcham has raised an alternative possibility, that "the CIA may have subcontracted to Mossad, given that the agency was both prohibited by law from conducting intelligence operations on U.S. soil, and lacked a pool of competent Arabic-fluent field officers. In such a scenario, the CIA would either have worked actively with the Israelis or quietly abetted an independent operation on U.S. soil…. When in the spring of 2002 the scenario of CIA's domestic subcontracting to foreign intelligence

was posed to the veteran CIA/NSA intelligence operative, with whom I spoke extensively, the operative didn't reject it out of hand" (Christopher Ketcham, "Cheering Movers and Art Student Spies: What Did Israel Know in Advance of the 9/11 Attacks?" CounterPunch, February 7, 2007, ).


Oswald requested a dependency discharge from the Marines in August 1959, "on the ground that his mother needed his support" (Warren Report, 688). Accordingly Marine Lt. A.G. Ayers, Jr. signed a document for Oswald’s release to inactive duty on September 11, 1959 (19 WH 679, cf. 17 WH 762) "by reason of hardship (19 WH 678). However Lt. Ayers should have known that Oswald had no intention of staying in Texas to support his mother; he had already, on September 4, 1959, signed an affidavit in support of Oswald’s passport application "to attend the College of A. Schweitzer, Chur, Switzerland and the Univ of Turku, Turku, Finland" (22 WH 77-79). (It is a sign of some covert intrigue that the language of instruction at the University of Turku was Finnish, a language Oswald did not know.)


A significant symptom of this enduring substratum has been the Bush Administration’s protection of Samuel Berger, Clinton’s national security advisor. Berger pleaded guilty in April 2005 to having stolen 9/11 documents from the National Archives (Shenon, The Commission, 414). A condition of his plea bargain was to submit to a Justice Department polygraph test, to determine what documents had been stolen. Republican Congressman Dana Rohrabacher, a long-time critic of CIA operations in Afghanistan, revealed to the House in February 2008 that he had written to the Bush Justice Department, demanding that it administer the polygraph test, and that the Justice Department had rejected his demand (Congressional Record, February 26, 2008, House, pp. H1065-H1072). We have already seen that Berger when in office was receiving regular reports from the CIA about the presence of al-Mihdar and al-Hamzi at the Kuala Lumpur meeting (Zegart, Flying Blind, 117). It is possible that these were the reports he was stealing from the Archives, and that the Justice Department refusal to administer the polygraph test is part of a cover-up to protect the CIA’s relationship to the two Saudis.


Amy Chua, Day of Empire: How Hyperpowers Rise to Global Dominance – and Why They Fall (New York: Doubleday, 2007), 342.


Peter Dale Scott, a former Canadian diplomat and professor at the University of California, Berkeley, is the author of the forthcoming The War Conspiracy: JFK, 9/11, and the Deep Politics of War, due in August 2008. This previously unpublished essay is the concluding section of the new book, which can be ordered from the Mary Ferrell Foundation Press by clicking here at His website is



*&* addendum:

9/11, Deep State Violence and the Hope of Internet Politics

The Deep State and 9/11

by Prof. Peter Dale ScottGlobal Research, June 11, 2008

The unthinkable – that elements inside the state would conspire with criminals to kill innocent civilians – has become not only thinkable but commonplace in the last century. A seminal example was in French Algeria, where dissident elements of the French armed forces, resisting General de Gaulle’s plans for Algerian independence, organized as the Secret Army Organization and bombed civilians indiscriminately, with targets including hospitals and schools.1 Critics like Alexander Litvinenko, who was subsequently murdered in London in November 2006, have charged that the 1999 bombings of apartment buildings around Moscow, attributed to Chechen separatists, were in fact the work of the Russian secret service (FSB).2

Similar attacks in Turkey have given rise to the notion there of an extra-legal "deep state" – a combination of forces, ranging from former members of the CIA-organized Gladio organization, to "a vast matrix of security and intelligence officials, ultranationalist members of the Turkish underworld and renegade former members of the [Kurdish separatist] PKK."3 The deep state, financed in part by Turkey’s substantial heroin traffic, has been accused of killing thousands of civilians, in incidents such as the lethal bomb attack in November 2005 on a bookshop in Semdinli. This attack, initially attributed to the Kurdish separatist PKK, turned out to have been committed by members of Turkey's paramilitary police intelligence service, together with a former PKK member turned informer.4 On April 23, 2008, the former Interior Minister Mehmet Agar was ordered to stand trial for his role in this dirty war during the 1990s.5

In my book The Road to 9/11, I have argued that there has existed, at least since World War Two if not earlier, an analogous American deep state, also combining intelligence officials with elements from the drug-trafficking underworld.6 I also pointed to recent decades of collaboration between the U.S. deep state and al-Qaeda, a terrorist underworld whose drug-trafficking activities have been played down in the 9/11 Commission Report and the mainstream U.S. media.7

Still to be explained is the suppressed anomalous fact that al-Qaeda’s top trainer on airplane hijackings, Ali Mohamed, was simultaneously a double-agent reporting to the FBI, and almost certainly still maintained a connection to the CIA which had used him as an agent and helped bring him to this country in the 1980s.8 It is not disputed that Ali Mohamed organized the Embassy bombing in Kenya; and that he did so after the RCMP, who had detained him in Vancouver in the presence of another known terrorist, released Mohamed on instructions from the FBI.9

From this historic background of collaboration, I would offer a hypothesis for further investigation: that the American deep state is somehow implicated with al-Qaeda in the atrocity of 9/11; and that this helps explain the conspicuous involvement of the CIA and other U.S. agencies in the ensuing cover-up.

Sibel Edmonds, the Turkish-American who was formerly an FBI translator, has publicly linked both al-Qaeda and American officials to the Turkish heroin trafficking that underlies the Turkish deep state. Although she has been prevented from speaking directly by an extraordinary court order,10 her allegations have been summarized by Daniel Ellsberg:

In response to my article on currency controls and QE feuding in many countries (See South Korea, Hong Kong, Brazil, China, Volcker Complain about Bernanke's QE Policy), reader Robert has some personal observation on happenings in Poland.

Robert writes ...

Hi Mish,

I'm a long time reader of your blog - congratulations on doing such a good work for so long!

I've just read your recent post on international reactions to QE2 and the threat of worldwide capital controls. I have something to add here from my country.

In Poland, there has been a bubble in real estate since 2006-2007 that never really popped. Condo prices in downtown Warsaw (capital of Poland) are comparable to prices in Berlin and Vienna, and of course incomes and standard of living are way way lower.

Real estate prices have fallen 10-15% from the peak alright, but incidentally our currency has recently strengthened, so the net result from the international perspective is nearly zero. Real estate prices has been fueled, as is typical for the whole region of central-eastern Europe and Baltic States, by cheap capital denominated in CHF (Swiss Francs) and EUR (earlier in the decade USD), coordinated mainly by Austrian and Italian banks and originating in Switzerland and ECB.

With this situation, there is a growing pressure, at least a year running, from our central bank and partly from the finance ministry to curb the inflow of cheap money and seemingly - although it is never openly admitted - to try and prick the real estate bubble, the bubble that has indeed reached a ridiculous size and is pushing more and more families into debt servitude.

There has been a series of banking regulations ("recommendations") issued by Komisja Nadzoru Finansowego (Commision of Financial Supervision) that targets inflows of cheap money. The curbing is effected mainly by reining in the mortgage market, that has been - again, as is typical for the whole region - the main venue of external capital inflow. Recently there have been two important regulations issued on that matter. Recommendation SII(effective January 2011) mandates that banks should have no more than 50% mortgage portfolios denominated in foreign currencies and effectively mandates (at least for the not very wealthy customers) that mortgages be issued for no more than 25 years. Recommendation T (effective September 2010) mandates that LTV for forex mortgages should never exceed 80% and that banks must consider harsh changes in the interbank market rates when qualifying customers for such loans.

It has been also recently discussed that possibly somewhere in 2011 a regulation will be passed that completely cuts people off from foreign currency mortgages unless they actually have assets (other than real estate itself) that can balance the Forex risk or Forex earnings.

Such regulation would effectively almost totally cut off cheap external mortgage financing.

There has also recently been a change in language of Polish banking regulators. It is now quite openly said that the practice of selling very long term, adjustable rate mortgages denominated in foreign currency should be literally "brutally and completely curbed" (words of the chairman of NBP, our central bank).

This is a process that is slowly but regularly unfolding and will surely take some more time; cheap EUR mortgages are still widely available and will be at least until the end of 2010. But it seems that the process of curbing capital inflows is gaining pace rapidly in Poland and it should bear very concrete fruits in 2011 and 2012,
especially taking into account recent acceleration in Fed lunacy that could (and I expect it will) spur counter reactions in my country analogous to what is happening in Korea or Brazil. There are no reactions as of yet, but I expect them soon.

It should perhaps be added that Polish banking regulator bodies and central bank are quite independent from the government and it seems that this independence is factual, not merely statutory; there have been many episodes in the last decade that NBP was in harsh conflict with the govt.


Poland Stats: 62% of Mortgages, 23.9% of Corporate Loans made in Foreign Currencies

In a followup question I asked Robert what percentage of mortgages in Poland were in foreign currencies. Here is Robert's response ...
Hello Mish

This is straight from the central bank's data: 158203.4 M PLN foreign currency (56.64 billion USD, 62.03% total), 96837.7 M PLN domestic currency (34.67 billion USD, 37.97% total). All USD values calculated according to current Forex ask rate.

That was household mortgages. On the other hand, statistics of corporate credit show the exactly opposite behavior: 157110.5 M PLN domestic currency (56.25 billion USD, 76.1% total), 49335.7 M PLN foreign currency (17.66 billion USD, 23.9% total).

Forex corporate credit is quite steadily declining (in nominal terms) since february 2009, as well as domestic currency corporate credit. What is perhaps more alarming (especially that real estate prices are slowly but steadily declining) is that household mortgage credit is relentlessly growing as if no financial crisis occurred at all and the good times roll; domestic currency mortgages are up 29.3% nominally yoy, foreign currency mortgages up 12.3%.

The recent deceleration in growth of Forex household mortgages and acceleration in domestic currency mortgages is attributable entirely to a special government financial program ("Rodzina na Swoim", "Family on its own") that lets you get a domestic currency mortgage with extra payment from government that amounts to 0.25-0.5 of interest paid, so effectively the interest on such mortgages for the final customer is 0.5-0.75 of "normal" market rate; that might finally amount to 2.7-4% - such rates are comparable to what one can get for forex mortgages (in spite of rates in Poland being in theory a healthy 2.5-3.5 percentage points above Switzerland, ECB or USA), so it is understandable that there is a lot of demand for domestic currency mortgages currently.

What should be stressed is that this special payment program is phased out in 2011 (our government has recently a very hard time explaining to the public opinion and independent economists why the deficit and debt grows so quickly; there are indeed many austerity pressures); as of January 2011 it will be offered only to people buying new development real estate and some time in 2011 H2 (don't remember exactly when) the program expires entirely.

It is widely and correctly expected that if this happens and the supply of foreign currency credit is not curbed, people will again widely take on mainly EUR, and to a lesser amount CHF and USD denominated mortgages. This scenario is apparently explicitly targeted by the banking regulators, as I wrote in the earlier mail.

It should be added that nearly all mortgages in Poland are ARMs with interest invariably calculated as WIBOR (polish interbank market rate)+margin or LIBOR/EURIBOR+margin. The margin typically is, depending on LTV and customer's creditworthiness (which actually IS checked quite thoroughly), 1.1-2 percentage points for PLN and EUR mortgages and 2-3.5 percentage points for CHF and USD mortgages.

3-month WIBOR (interbank rate for PLN deposits) is currently at 3.85%, the yield curve is normal and not very steep (both for interbank rates and govt bonds). Polish central bank, as most central banks do currently, targets short term rates which is understandable from their viewpoint as it allows almost full control over both commercial credit and mortgage rates - as I said earlier, almost all mortgages are ARMs indexed to short-term interbank rates. Interest rate swaps for foreign currencies are nearly unavailable to "mere mortals" in Poland and domestic currency IRSes are simply non-existent (no demand I guess, everyone is happy with plain ARMs).

Wow, I just described like a half of Polish financial market. Cheers,

Thanks Robert! I always appreciate emails like yours so readers in the US can find out what is really happening in Europe.

Mortgages denominated in foreign currencies are a disaster waiting to happen, not only for the debtors but to the banks that made the loans.

Mike "Mish" Shedlock
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