Real Cost of War

What war does to people and nations. 'Cost' is much more than a monetary valuation. War really costs most of us our Humanity!

Thursday, March 20, 2008
On this day:

Eric Pepin Sues SOTT for 4.5 Million!

Perhaps one might wonder what this has to do with the 'real cost of war'.  As stated here many times, there is more to 'cost' than just money!

One of the leading Internet Sites giving a much truer picture of what is really going on with all this 'war stuff' is Signs of the Times.  As such, it seems very possible and even probable that those who would like to retain secrets from the public must be very upsetabout SOTT's activities in doing much to allow the light of truth to shine from their pages.

It seems extremely odd that Pepin is not suing the newpapers who published info about his 'alleged' sexual misconduct and trial, including the statement by the judge who feels Pepin actually was guilty of the charges against him but could not find him guilty because there was insufficient hard proof that the victim was underage at the time the alleged crime occurred.  It would seem there would be much more advantage in suing someone who could actually pay something if the suit were won (which seems very unlikely in the first place, but you just never know these days).

It appears SOTT is the target because somebody wants to shut Laura up and get her off their back!

The following description of the charges filed and explanation of same by Laura Knight Jadczyk
was originally posted at the SOTT website.


Internet Free Speech Under Threat! Eric Pepin - Higher Balance Institute Sue SOTT for 4.47 Million Over SOTT Forum Comments!

Laura Knight-Jadczyk
sott.net
Fri, 07 Mar 2008 06:10 EST

Yesterday, as I was working on finishing up the next installment of the Comet Series of Articles, FedEx delivered a packet of mail from our corporate registered agent in the U.S. It was "Complaint and Demand for Jury Trial" filed in the State of Oregon by Eric Pepin's Higher Balance Institute, LLC. The reason? A discussion on the SOTT Forum that begins HERE.



Well, that was entertaining enough when you think about the fact that the discussion that he objects to was centered on several newspaper articles that describe his close calls with the legal system in Oregon over charges of sex abuse.


The legal document I received is 10 pages long so I'm just going to summarize it here. If you want to read the whole thing (it's hilarious beyond belief!) go HERE for the pdf.





UNITED STATES DISTRICT COURT DISTRICT OF OREGON



Civil No.: CV '08-0233 HA



COMPLAINT AND DEMAND FOR JURY TRIAL



HIGHER BALANCE, LLC, an Oregon

Limited Liability Company, dba HIGHER

BALANCE INSTITUTE, Plaintiff



v.



QUANTUM FUTURE GROUP, INC, a

California corporation, and LAURA

KNIGHT- JADCZYK, Defendants.



Plaintiff Higher Balance LLC, dba Higher Balance Institute ("HBI") files this Complaint against defendants Quantum Future Group, Inc. ("QFG") and Laura Knight-Jadczyk and alleges the following:



...defendants committed intentional torts that were purposefully targeted at HBI within the State of Oregon; defendants knew that HBI is a resident of the State of Oregon; defendants' tortious conduct cause HBI to suffer economic harm within the State of Oregon; HBI's claims arise out of defendants' activities relating to the State of Oregon; and the exercise of jurisdiction over defendants is reasonable in light of their intentional misconduct directed towards a resident of the State of Oregon.



As this Court has specific personal jurisdiction over the defendants, venue is proper in this district and division under 28 U.S.C 1391(a)(3)



General Allegations:



HBI is an Oregon-based company with over 40,000 customers from all over the world. HBI is dedicated to helping its customers relieve stress, reduce anxiety, and achieve emotional balance and spiritual enlightenment through meditation techniques. The majority of HBI's revenues are derived from the online sale of its books and CDs, which are designed to help its customers learn these meditation techniques.



[Etc...]



Defendant QFG operates a website known as Signs of the Times ("SOTT"). QFG posts articles and sponsors forums regarding various conspiracy theories and allegedly corrupt organizations on the SOTT website.



Employees and agents of QFG, including defendant Knight-Jadczyk, serve as administrators and moderators of SOTT forums. QFG employees and agents, including defendant Knight-Jadczyk, post comments and analyses in SOTT forums. These employees and agents act within the course and scope of their agency for QFG when serving as administrators and moderators of the SOTT website and when posting comments and analyses on the SOTT website.



SOTT forums are available to the general public online.



...Many of HBI's existing and potential customers read the SOTT website as a source of alternative media....



FIRST CLAIM FOR RELIEF - Defamation - Libel



....Beginning in May 2006, QFG sponsored a forum on the SOTT website concerning HBI under the heading "COINTELPRO."



Beginning in November 2007, defendants intentionally posted several false, baseless, and derogatory accusations concerning HBI on the SOTT website including, but not limited to:



a. HBI is a "front for pedophilia";

b. HBI is a "cointelpro" organization;

c. Meditation, as sold by HBI, is an act of "falling into confluence with a psychopathic reality";

d. Those associated with HBI must be careful to avoid sexual molestation by HBI members;

e. HBI is conning the public;

f. "Fishy sexual conduct is occurring at HBI; and

g. HBI "leads people more deeply into sleep."



By posting these statements in a public internet forum, defendants have published and communicated false and baseless accusations concerning HBI to third parties, including existing and potential HBI customers.



Defendants' statements tend to subject HBI to hatred, contempt, and ridicule and tend to diminish the esteem, respect, goodwill and confidence in which HBI is held by the public and by its customers.



Defendant made these false statements with knowledge of their falsity or with reckless disregard for their truth.



As a result of defendants' false and defamatory statement, HBI suffered general damages in the form of loss of reputation in an amount to be determined at trial, but in any event, not less than $500,000. HBI has also suffered special damages in the form of lost income in amounts to be determined at trial, but in any event, not less than $834,732.



Defendants defamatory statements are still available to the general public on the SOTT website and are easily found through internet searches relating to HBI. Defendants conduct causes HBI irreparable harm, and HBI is entitled to an injunction preventing defendants' continued defamation of HBI.



SECOND CLAIM FOR RELIEF: False Light



Defendants intentionally gave publicity to matters concerning HBI that placed HBI in a false light before the public. etc



...economic damages ... not less than $834,732.



THIRD CLAIM FOR RELIEF: Intentional Interference with Economic Relations - Interference with Business Relationships



Defendant intentionally interfered with many of these business relationships by communicating the false and defamatory information listed...



...economic damages ... not less than $97,299.



HBI... has also suffered damages in the form of loss of reputation ... damages .... not less than $500,000.



...Defendants conduct was malicious and warrants punitive damages...



FOURTH CLAIM FOR RELIEF: Intentional Interference With Economic Relations - Prospective Economic Advantage



Defendant's interference has diminished the esteem, respect, goodwill, and confidence in which HBI is held by the general public, thereby hindering HBI's ability to obtain many new customers with whom HBI had a prospective business relationship. ... damages to be determined at trial...



...On its First Claim for Relief, that HBI be awarded general and special damages in amounts to be determined at trial, but in any event, not less than $1,334,732, and that defendants be enjoined from their continued defamation of HBI.



...On its Second Claim for Relief, that HBI be awarded damages in an amount to be determined at trial, but in any event, not less than $1,334,732. and that defendants be enjoined from continuing to place HBI in a false light.



...On its Third Claim for Relief, that HBI be awarded damages in an amount to be determined at trial, but in any event, not less than $597,299. plus punitive damages, and that defendants be enjoined from their coninued interference with HBI's prospective business relationships.



...On its Fourth Claim for Relief, that HBI be awarded damages in an amount to be determined at trial, but in any event, not less than $1,205,000 plus punitive damages, and that defendants be enjoined from their continued interference with HBI's business relationships.



... That HBI be awarded pre-judgment and post-judgment interest on all damages recovered.



...That HBI be awarded its costs and disbursements incurred in this action; ...



Harry and David demands a trial by jury on all issues so triable.



25th day of February, 2008.



Bullivant houser Bailey PC

Renee E. Rothauge

Chad M. Colton

Tel 503.228.6351

Attorneys for Higher Balance Institute





Whoah! That's some heavy duty stuff, eh? Sounds like we just ripped up on that poor guy for no reason at all!



But that's not quite the situation. The original article about Eric Pepin that was brought to our attention on page 5 of the above-mentioned forum thread read as follows:





A 39-year-old Aloha man who promises spiritual awakening through meditation books and CDs he sells on the Internet is facing sex-abuse charges.



Beaverton police Detective Mike Smith said Eric J. Pepin runs what appears to be a cult out of his Higher Balance Institute on Southwest Second Street in Beaverton.



Pepin was arraigned Tuesday in Washington County criminal court on one count of using a child in a display of sexually explicit conduct, two counts of second-degree sexual abuse, and four counts of third-degree sexual abuse. He was released after posting $26,750 cash, or 10 percent of $267,500 bail. A trial was set for Sept. 12.



Using a child in a sexual display is a Measure 11 crime punishable by a mandatory minimum of 5 years and 10 months in prison.



Jamison Dwight Priebe, 21, who works for Pepin and lives at the same address in the 19600 block of Southwest Cooperhawk Court in Aloha, also was arrested on one count each of using a child in a sexual display and third-degree sexual abuse.



Priebe and Pepin turned themselves in at the Washington County Jail last week after a grand jury handed down secret indictments. Priebe was released after posting $25,375 cash bail and is awaiting arraignment Monday.



Smith said a man who is now 20 was 17 and working for Pepin when he allegedly was sexually abused at the Higher Balance office in the 11900 block of Southwest Second Street in Beaverton and at Pepin's former home in the city.



A call to the Higher Balance Institute on Wednesday was answered by a "Personal Star Reach Coach," who referred questions to Pepin's private attorney, Sam Kauffman.



"The charges are false, and we are confident Mr. Pepin will be exonerated," Kauffman said.



Pepin's Web site claims he has located more than 100 missing persons and runaways, along with U.S. Navy submarines, through a psychic ability he calls "remote viewing."



Pepin's meditation systems, which sell for $79 to $149, help customers develop their "sixth sense" and apply it "inward to awaken a dimensional universe within the mind," the Web site says.



According to an affidavit Smith filed with a request for a search warrant, the alleged victim told police that Internet customers who rave about Pepin's teachings are men and women usually older than 35. But, the man said Pepin told him he should recruit "good-looking men" between the ages of 18 and 24 to work for him.



The court record also says Pepin knew the man was 17 when he forced him to perform sex acts.



The boy, Smith wrote, "was taught by Pepin to believe that the sexual contact was only a spiritual necessity." But after a while, the affidavit says, the boy decided he was being used by Pepin, who bought him meals and paid him $200 after sex.



The man contacted Beaverton police in January.



Smith said anyone who may have had underage sexual contact with Pepin should call him at 503-526-2280.



Smith said the man accusing Pepin told police he met one of Pepin's followers at Beaverton Town Square in April 2004. He told Smith the recruiter invited him to meet Pepin and see him demonstrate levitation.



Pepin introduced himself dressed in a robe emblazoned with the words "Master Eric" and a triangular symbol and told the victim to take off his shirt, the detective said.



"It's a cult," Smith said, "anytime you have a guy who fancies himself as the master, the leader."





In another story from Associated Press found HERE, we read:





Beaverton police Detective Mike Smith said Pepin operated the Higher Balance Institute in Beaverton. Smith said the ornate robe emblazoned "Master Eric" turned up during a search.





Well, I've been falsely accused of trying to start a cult myself, so I might ordinarily have had sympathy for Pepin, but when I read the bit about the robe, I blew my tea through my nose. I guess that's why I'm such a failure as a cult-leader (aside from the fact that I'm not interested in the job) - I hardly ever wear anything other than sweats and bedroom slippers and spend all my time working!



In any event, even though a grand jury felt that there was enough evidence to indict Pepin, he was eventually acquitted in trial before a judge as the following report informs us:





Institute leader acquitted of sex charges



HOLLY DANKS - HILLSBORO -- A Washington County Circuit judge called the leader of a metaphysical Internet sales company manipulative and controlling and his testimony unbelievable, even as he acquitted him Wednesday of charges that he had sex with an underage boy.



Judge Steven L. Price, after a five-day trial without a jury, found Eric James Pepin, 40, not guilty of two counts of second-degree sexual abuse, four counts of third-degree sexual abuse and one count of using a child in a display of sexually explicit conduct.



Also acquitted of third-degree sexual abuse and using a child in a pornographic display was Jamison Dwight Priebe, 21, who has worked for Pepin's Higher Balance Institute since he was 18.



"Everybody has stood by me who knows me," Pepin said Wednesday after hugging supporters. "They had faith in me, prayed for me. I told them I wouldn't let them down. I did nothing of what was alleged. I've been nothing but honorable and impeccable."



However, Price said it was "probable that the conduct alleged in all counts occurred," but he wasn't convinced beyond a reasonable doubt. "There's a lack of strong corroboration," such as a date-stamp on a videotape of the sexual encounter, the judge said.



The accuser testified Pepin had him take off his shirt the first day they met at Pepin's Beaverton home in April 2004.



"He was going to try and fix my energy and he needed me to trust him," the accuser said. Pepin touched the teen's "chakra points" on his heart, head and lower abdomen.



"Eric asked me to tell him everything I had done in my life that I was ashamed about," the teen added.



The accuser said Pepin asked him how old he was the first day they met and that he told him the truth.



"He said students had to be 18 because he didn't like parents fussing around," the accuser said.



But within days the two were having sex, including a three-way encounter with Priebe, the youth testified. Pepin called it "crossing the abyss," the accuser said, "surrendering yourself to your teacher, your master."



Pepin testified he is gay and has had sexual relationships with most of his 11 employees, but not before they were 18. Pepin said he gave his accuser a job, even though the teen was a poor worker, and continued to be intimate with him and give him money after he was fired, to help him out.



Stephen A. Houze, Pepin's private defense attorney, called the accuser a liar more than 100 times in his closing argument and noted that Pepin was "the perfect patsy" because society wants to believe the worst of a gay man. Houze said the accuser brought the charges because he wanted to shake down Pepin.



Pepin's Higher Balance Institute, now on Northwest Saltzman Road in Cedar Mill, reached an annual high of $2 million in Internet sales of meditation CDs, tapes and books before his arrest in July.



Pepin touts himself as a psychic and "remote viewer" who has found lost submarines and missing people, and says he created the "psychic pill" Magneurol6-S that enhances brain function, heals nerve damage, heightens paranormal experiences and relieves stress for $79 a bottle.



Andrew Erwin, deputy district attorney, called Higher Balance nothing more than a sex cult run by a "snake oil" salesman who preys on the troubled.



The accuser had nothing to gain by going to police and turned down $250,000 from Pepin to drop the sex charges, Erwin said.



"I'm disappointed," Erwin said of the verdicts. "The judge wants proof beyond all doubt and that's too high a standard."





And now, Pepin wants to sue QFG and yours truly for talking about these articles, published in a newspaper and scattered across the web (though all of them are no longer on the newspaper's website, wonder what's up with that?)!!



Notice that Pepin, himself, revealed his "sex cult" practices in his own testimony. We'll be trying to get transcripts of the trial to publish so our readers can hear it from the horse's mouth; stay tuned for that.



Notice also that Pepin's attorney, Houze, accused the victim of bringing charges because he wanted to shake down Pepin even though the kid turned down 250 K hush money offered by Pepin. Well, maybe that's what gave Pepin the idea of suing me. Only thing is, he's gonna have a hard time collecting his 4.47 million because I don't own a thing, live in a rented house, drive a used car and QFG rarely has more than a grand in the bank at any given time. When we have fund-raisers, the funds are used almost instantly, repaying loans and covering basic expenses for the site and equipment.



It's also humorous that Pepin is suing QFG which only sponsors a world-wide group of independent researchers who, together, make up sott.net. QFG doesn't own sott, nor does QFG have any employees nor any official oversight of anything that the sott.net researchers say or do.



But the bottom line is this: Eric Pepin is convicted out of his own mouth. I mean, what kind of teacher of meditation says that he has sex with all his employees? And all of them young men?



Nope, we aren't backing down. We firmly believe, based on available official documents and court records, that Eric Pepin is a danger to innocent people looking for spiritual guidance. Obviously, young guys just looking for sex and money and a good time will be delighted to take his pills, listen to his tapes and attend his retreats. But the wider public who are not aware of these things in Pepin's background, who are not aware that even the judge who acquitted him regretted having to do so, and that the Prosecutor of the case was also convinced that justice had NOT been done, need to be warned about such individuals in our society.



Maybe Eric Pepin will take Sott.net down, we don't know. We don't have money for an expensive defense attorney, we barely stay afloat. But even if that happens (and we hope our readers will help us out now as never before), there are others who know and I don't think that Eric Pepin and all his minions can track down and silence all of them.



Even if you can't give to our legal defense fund, I will appreciate letters of support during this trying time. Write to sott(at)sott.net and I will try to answer each and every one.



And thanks to all our readers for your constant support and encouragement.



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Saturday, March 01, 2008
On this day:

What the Iraq War is really costing!

We were all told this invasion (it isn't really a 'war') was going to cost pocket-change when it was first being sold to the public.  It certainly isn't turning out that way.  Of course, it is good to keep in mind that what is termed "cost" is only the financial aspect of it all.  There is, of course, human suffering and death which is completely out of bounds of any way to calcualte it all.

Found this article on SOTT.net the other day:


The True Cost of War

Aida Edemariam
UK Guardian
Fri, 29 Feb 2008 17:25 EST

[...] Some time in 2005, Stiglitz and Linda Bilmes, who also served as an economic adviser under Clinton, noted that the official Congressional Budget Office estimate for the cost of the war so far was of the order of $500bn. The figure was so low, they didn't believe it, and decided to investigate. The paper they wrote together, and published in January 2006, revised the figure sharply upwards, to between $1 and $2 trillion. Even that, Stiglitz says now, was deliberately conservative: "We didn't want to sound outlandish."


Appetites whetted, Stiglitz and Bilmes dug deeper, and what they have discovered, after months of chasing often deliberately obscured accounts, is that in fact Bush's Iraqi adventure will cost America - just America - a conservatively estimated $3 trillion. The rest of the world, including Britain, will probably account for about the same amount again. And in doing so they have achieved something much greater than arriving at an unimaginable figure: by describing the process, by detailing individual costs, by soberly listing the consequences of short-sighted budget decisions, they have produced a picture of comprehensive obfuscation and bad faith whose power comes from its roots in bald fact.



Some of their discoveries we have heard before, others we may have had a hunch about, but others are completely new - and together, placed in context, their impact is staggering. There will be few who do not think that whatever the reasons for going to war, its progression has been morally disquieting; following the money turns out to be a brilliant way of getting at exactly why that is.



Next month America will have been in Iraq for five years - longer than it spent in either world war. Daily military operations (not counting, for example, future care of wounded) have already cost more than 12 years in Vietnam, and twice as much as the Korean war. America is spending $16bn a month on running costs alone (ie on top of the regular expenses of the Department of Defence) in Iraq and Afghanistan; that is the entire annual budget of the UN. Large amounts of cash go missing - the well-publicised $8.8bn Development Fund for Iraq under the Coalition Provisional Authority, for example; and the less-publicised millions that fall between the cracks at the Department of Defence, which has failed every official audit of the past 10 years. The defence department's finances, based on an accounting system inaccurate for anything larger than a grocery store, are so inadequate, in fact, that often it is impossible to know exactly how much is being spent, or on what.



This is on top of misleading information: in January 2007 the administration estimated that the much-vaunted surge would cost $5.6bn. But this was only for combat troops, for four months - they didn't mention the 15,000-28,000 support troops who would also have to be paid for. Neither do official numbers count the cost of death payments, or caring for the wounded - even though the current ratio of wounded to dead, seven to one, is the highest in US history. Again, the Department of Defence is being secretive and misleading: official casualty records list only those wounded in combat. There is, note Stiglitz and Bilmes in their book, "a separate, hard-to-find tally of troops wounded during 'non-combat' operations" - helicopter crashes, training accidents, anyone who succumbs to disease (two-thirds of medical evacuees are victims of disease); those who aren't airlifted, ie are treated on the battlefield, simply aren't included.



Stiglitz and Bilmes found this partial list accidentally; veterans' organisations had to use the Freedom of Information Act in order to get full figures (at which point the ratio of injuries to fatalities rises to 15 to one). The Department of Veterans Affairs, responsible for caring for these wounded, was operating, for the first few years of the war, on prewar budgets, and is ruinously overstretched; it is still clearing a backlog of claims from the Vietnam war. Many veterans have been forced to look for private care; even when the government pays for treatment and benefits, the burden of proof for eligibility is on the soldier, not on the government. The figure of $3 trillion includes what it will cost to pay death benefits, and to care for some of the worst-injured soldiers that army surgeons have ever seen, for the next 50 years.



By way of context, Stiglitz and Bilmes list what even one of these trillions could have paid for: 8 million housing units, or 15 million public school teachers, or healthcare for 530 million children for a year, or scholarships to university for 43 million students. Three trillion could have fixed America's social security problem for half a century. America, says Stiglitz, is currently spending $5bn a year in Africa, and worrying about being outflanked by China there: "Five billion is roughly 10 days' fighting, so you get a new metric of thinking about everything."



I ask what discoveries Stiglitz found the most disturbing. He laughs, somewhat mirthlessly. "There were actually so many things - some of it we suspected, but there were a few things I couldn't believe." The fact that a contractor working as a security guard gets about $400,000 a year, for example, as opposed to a soldier, who might get about $40,000. That there is a discrepancy we might have guessed - but not its sheer scale, or the fact that, because it is so hard to get insurance for working in Iraq, the government pays the premiums; or the fact that, if these contractors are injured or killed, the government pays both death and injury benefits on top. Understandably, this has forced a rise in sign-up bonuses (as has the fact that the army is so desperate for recruits that it is signing up convicted felons). "So we create a competition for ourselves. Nobody in their right mind would have done that. The Bush administration did that ... that I couldn't believe. And that's not included in the cost the government talks about."



Then there was the discovery that sign-up bonuses come with conditions: a soldier injured in the first month, for example, has to pay it back. Or the fact that "the troops, for understandable reasons, are made responsible for their equipment. You lose your helmet, you have to pay. If you get blown up and you lose your helmet, they still bill you." One soldier was sued for $12,000 even though he had suffered massive brain damage. Some families have had to buy their children body armour, saving the government costs in the short term; those too poor to afford it sustain injuries that the government then has to pay for. Then there's the fact that it was not until 2006, when Robert Gates replaced Donald Rumsfeld as secretary of defence, that the DOD agreed to replace Humvees with mine-resistant ambush-protected (MRAP) armoured vehicles, which are much more able to repel roadside bombs; until that time, IEDs killed 1,500 Americans. "This kind of penny-wise, pound-poor behaviour was just unbelievable."



Yet on another level, Stiglitz is unsurprised, because such decisions are of a piece with the thoroughgoing intellectual inconsistency of the Bush administration. The general approach, he says, has been a "pastiche of corporate bail-outs, corporate welfare, and free-market economics that is not based on any consistent set of ideas. And this particular kind of pastiche actually contributed to the failures in Iraq." There are the well-rehearsed reasons: ignoring international democratic processes while advocating democracy; pushing forward liberalisation before Iraq was ready. Stiglitz's twist on this was the emails he was receiving from the United States Agency for International Development, complaining about the Treasury being obstructive. "They were saying, 'Can you help us? Because we're trying to get businesses to work, but the US Treasury is trying to tighten credit, so there's no money in this country.' "



Then, of course, there is the administration's insistence on "sole-source bidding" - awarding vast, multi-year contracts to Halliburton, for example, instead of putting them out to tender. "An academic might say, 'How can you be a free market, yet demand single-source contracting?'" asks Stiglitz now, mildly - but this is not the way the current administration operates. We know quite a lot now about contractors' excesses, but it is their economic effect that Stiglitz and Bilmes are interested in, and this seems often to have been malign. Free market ideals had, of course, to apply to Iraq, if not to Halliburton (which received at least $19.3bn in single-source contracts), so Paul Bremer, head of the Coalition Provisional Authority, abolished many tariffs on imports, and capped corporate and income tax. Predictably, this led to general asset-stripping, and exposed Iraqi firms to free competition - meaning that many closed down, putting yet more people out of work. ("The benefits of privatisation and free markets in transition economies are debatable, of course," write Stiglitz and Bilmes in their book; a model of understatement, given that Stiglitz is famous for spelling out the harm sustained by poor countries in his book Globalisation and its Discontents (2002), and lost his job at the World Bank for outspokenly making the argument in the first place.) Many reconstruction jobs, in alignment with US procurement law, went to expensive American firms rather than cheaper Iraqi ones - a further waste of resources (one painting job, for example, cost $25m instead of $5m); these American firms, looking to keep their own costs down and profit margins high, imported cheap labour from such countries as Nepal - even though, at this point, one in two Iraqi men was out of work.



This is not, then, pure neocon ideology at work, says Stiglitz: "Ideology of convenience is a better description." It is an ideology illustrated even more clearly in another fact that Stiglitz can't believe - that Bush put through tax cuts while going to war. In Stiglitz and Bilmes's reading, this was downright underhand. Raising taxes, and resorting to the rhetoric of shared sacrifice used in the world wars, for example, would have made Americans more aware of exactly what the war was costing them, and would have provoked opposition sooner. The solution was to borrow the money, at interest of couple of hundred billion dollars a year, which, by 2017, will add up to another trillion dollars or so. This government will be gone in nine months; subsequent administrations, and generations, will have to pay it off.



At the same time, Stiglitz and Bilmes argue, the Federal Reserve colluded in this obfuscation, because it "kept interest rates lower than they otherwise might have been, and looked the other way as lending standards were lowered, thereby encouraging households to borrow more - and spend more." Alan Greenspan, by this account, encouraged people to take on variable-rate mortgages, even as household savings rates went negative for the first time since the Depression. Individuals were taking on unprecedented debt at the same time as a long housing bubble made them feel wealthy (and less concerned with derring-do abroad) - a scenario echoed on this side of the Atlantic.



As we now know, this couldn't continue - in part because of yet another effect of the war. Whatever the much argued reasons for bombing Baghdad, cheap oil has not been the result. In fact, the price of oil has climbed from $25 a barrel to $100 in the past five years - great for oil companies, and oil-producing countries, who, along with the contractors, are the only beneficiaries of this war, but not for anyone else. After calculations based on futures markets, Stiglitz and Bilmes conclude that a significant proportion of this rise is directly due to the disruptions and instabilities caused by Iraq. This price rise alone has cost the US, which imports about 5bn barrels a year, an extra $25bn per year; projecting to 2015 brings that number to an extra $1.6 trillion on oil alone (against which the recent $125bn stimulus package is simply, as Stiglitz puts it, "a drop in the bucket").



Higher oil prices have a direct effect on family, city and state budgets; they also led to a drop in GDP for the US. When interest rates finally rose in response, hundreds of thousands of home owners found that they were unable to keep up payments, triggering the toxic tsunami of defaulted mortgages that has put the US on the brink of recession and brought down Northern Rock - with all the ramifications for British home owners and banks that that has in turn entailed.



Thus, any idea that war is good for the economy, Stiglitz and Bilmes argue, is a myth. A persuasive myth, of course, and in specific cases, such as world war two, one that has seemed to be true - but in 1939, America and Europe were in a depression; there was all sorts of possible supply in the market, but people didn't have the cash to buy anything. Making armaments meant jobs, more people with more disposable income, and so on - but peacetime western economies these days operate near full employment. As Stiglitz and Bilmes put it, "Money spent on armaments is money poured down the drain"; far better to invest in education, infrastructure, research, health, and reap the rewards in the long term. But any idea that war can be divorced from the economy is also naive. "A lot of people didn't expect the economy to take over the war as the major issue [in the American election]," says Stiglitz, "because people did not expect the economy to be as weak as it is. I sort of did. So one of the points of this book is that we don't have two issues in this campaign - we have one issue. Or at least, the two are very, very closely linked together."



And it is the world economy that is at stake, not just America's. The trillions the rest of the world has shouldered include, of course, the smashed Iraqi economy, the tens of thousands of Iraqi dead, the price, to neighbouring countries, of absorbing thousands of refugees, the coalition dead and wounded (before the war Gordon Brown set aside £1bn; as of late 2007, direct operating costs in Iraq and Afghanistan were £7bn and rising). But the rising price of oil has also meant, accoring to Stiglitz and Bilmes, that the cost to oil-importing industrial countries in Europe and the Far East is now about $1.1 trillion. And to developing countries it has been devastating: they note a study by the International Energy Agency that looked at a sample of 13 African countries and found that rising oil prices have "had the effect of lowering the average income by 3% - more than offsetting all of the increase in foreign aid that they had received in recent years, and setting the stage for another crisis in these countries". Stiglitz made his name by, among other things, criticising America's use of globalisation as a bully pulpit; now he says flatly, "Yes, that's part of being in a global economy. You make a mistake of this order, and it affects people all over the world."



And the borrowed trillions have to come from somewhere. Because "the saving rate [in America] is zero," says Stiglitz, "that means that you have to finance [the war] by borrowing abroad. So China is financing America's war." The US is now operating at such a deficit, in fact, that it doesn't have the money to bail out its own banks. "When Merrill Lynch and Citibank had a problem, it was sovereign funds from abroad that bailed them out. And we had to give up a lot of shares of our ownership. So the largest shareowners in Citibank now are in the Middle East. It should be called the MidEast bank, not the Citibank." This creates a precedent of dependence, "and whether we become dependent on Middle East oil money, or Chinese reserves - it's that dependency that people ought to worry about. That is a big change. The amount of borrowing in the last eight years, on top of the borrowing that began with Reagan - that has all changed the US's economic position in the world."



So quite apart from the war, does he think a particular kind of unfettered market has had its day? "Yes. I think that anybody who believes that the banks know what they're doing has to have their head examined. Clearly, unfettered markets have led us to this economic downturn, and to enormous social problems." Combined with the war, whoever inherits the White House faces a crisis of epic proportions. Where do they go from here? "The way that shapes the debate," says Stiglitz, "is that Americans have to say, 'Even if we stay for another two years, just two years, and we're spending $12bn a month up front in Iraq, and it's costing us another 50% in healthcare, disability, bringing it up to $18bn a month in Iraq, and you look at that in another 24 months, we're talking about half a trillion dollars more for two years - forgetting about the economic cost, the ancillary costs, the social costs - just looking at the budgetary cost - not including the interest - you have to say, is this the way we want to spend a half a trillion dollars? Will it make America stronger? Will it make the Middle East safer? Is this the way we want to spend it?"



Far better, he suggests, to leave rapidly and in a dignified manner, and to spend some of it on helping Iraqis reconstruct their own country - and the rest on investing in and strengthening the American economy, so that it can retain its independence, and have the wherewithal, at least, to play a responsible role in the world. The book ends with a list of 18 specific reforms arising from Stiglitz and Bilmes's discoveries, focusing on exactly how to fund and run a war from now on (depend not on emergency funds and borrowing but on surtaxes, for example, so that voters know exactly what it is they are paying for, and can vote accordingly). He has been approached by Barack Obama as a possible adviser should he reach the White House, although he says, "I've gone beyond the age where I would want to be in Washington full time. I would be interested in trying to help shape the bigger picture issues, and in particular the issues associated with America positioning itself in the new global world, and re-establishing the bonds with other countries that have been so damaged by the Bush administration."



I suggest, as devil's advocate, that to count costs in the way he has, and to advise retrenchment, might be seen as encouraging America to return to isolationism. "No. I think that's fundamentally wrong. The problem with Iraq was that it was the wrong war, and the wrong set of issues. Obama was very good about this. He said, 'I'm not against war - I'm just against stupid wars.' And I feel very much the same way. While we were worried about WMD that did not exist in Iraq, WMD did occur in North Korea. To use an American expression, we took our eye off the ball. And while we were fighting in Iraq, Afghanistan got worse, Pakistan got worse. So because we were fighting battles that we couldn't win, we lost battles that we could have." To discover that those lost battles included better healthcare for millions of Americans, a robust world economy, a healthier and more independent Africa, and a more stable Middle East, seems worth a bit of green-eye-shaded number crunching.



In figures



$16bn

The amount the US spends on the monthly running costs of the wars in Iraq and Afghanistan - on top of regular defence spending



$138

The amount paid by every US household every month towards the current operating costs of the war



$19.3bn

The amount Halliburton has received in single-source contracts for work in Iraq



$25bn

The annual cost to the US of the rising price of oil, itself a consequence of the war



$3 trillion

A conservative estimate of the true cost - to America alone - of Bush's Iraq adventure. The rest of the world, including Britain, will shoulder about the same amount again



$5bn

Cost of 10 days' fighting in Iraq



$1 trillion

The interest America will have paid by 2017 on the money borrowed to finance the war



3%

The average drop in income of 13 African countries - a direct result of the rise in oil prices. This drop has more than offset the recent increase in foreign aid to Africa





Comment: Follow the money indeed. Reading between the lines in this article we are left with the distinct impression that over the past 15 years or so, the powers that be have been implementing a massive world-wide pillaging of the world's resources, in particular the wealth of ordinary citizens.



As noted in the article above, the war was not for oil, at least not in terms of securing cheap oil for the people. The goal rather was to create the impression of a shortage in oil supplies and thereby justify a vast increase in the price of oil, which was then passed on to consumers, leading to massive profits for oil companies and their friends in government, these profits coming directly out of the pockets of ordinary citizens.



Read again the section in the above article where it is stated that, along with the Bush administration cutting taxes in order to fool the American people into believing that there would be no financial impact on them from Bush's massively expensive and illegal invasion of Iraq and Afghanistan:





"the Federal Reserve colluded in this obfuscation, because it kept interest rates lower than they otherwise might have been, and looked the other way as lending standards were lowered, thereby encouraging households to borrow more - and spend more."





What this means is that the (to date) 3 trillion that has funded the Iraq and Afghan adventures has been financed by the loans and debt that have over the past 10-15 years been pushed on the American and Western European people by the Banks. Essentially, that 3 trillion is backed by your car, your house and your expensive toys that the bank owns. The final stage in this massive fraud requires a manufactured "economic crash" in which the banks will call in their debts and millions will lose their assets and thereby pay for Bush's Middle Eastern misadventure.



Does all of this sound like a set-up? If so, it's because that is exactly what it is and has been since that defining moment of 9/11 when everything changed and no one had the courage to stand up and call out the lie of the bogus "war on terror".



You will pay the price for your ignorance, but even at this late stage you can still protect yourselves: stop believing and disseminating your leaders' lies among yourselves. Recognise that you have been had and decide that the deception stops, here and now, with you.