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BBC Tue, 08 Apr 2008 13:26 GMT
The coroner for the inquest into the death of Princess Diana has no plans to refer ex-butler Paul Burrell to police for a perjury investigation.

Lord Justice Scott Baker had told the jury that it was "blindingly obvious" her former butler had lied to them.

But after the verdict, he said he was "not minded" to involve the police.

The Metropolitan Police said it is not currently investigating any perjury allegations relating to the case, but did not rule out doing so in the future.

In his summing up, Lord Justice Scott Baker told the jury that the evidence Mr Burrell gave was clearly "not the whole truth", but that not all of his testimony should be discounted.

Mr Burrell, who has published several books and was a reality television participant, may have given evidence while thinking that "whatever he said might have an impact on his future enterprises", the coroner said.

In a video obtained by the Sun newspaper, Mr Burrell appeared to claim he introduced "red herrings" in court and held back facts.

Mr Burrell, 49, who denies perjury, had refused to return to the UK from the US to reappear at the inquest.

Lord Justice Scott Baker also cast doubt on Mr Burrell's conversation with the Queen several months after the August 1997 crash, in which he claimed that the Queen told him "there are powers at work in this country of which we have no knowledge".

Dodi's father Mohamed has rejected the verdicts. His spokeswoman, Katharine Witty, told BBC News 24: "I think he is just going to reflect on the full ramifications of the verdict."

Asked if he would challenge it through judicial review, she said: "I think it is something he is considering...I think he is going to be very mindful of what people are saying - which is that it should end here."

She said Mr Al Fayed accepted some issues had "fallen away" during the inquest, but added: "It is possible that MI6 were involved...we are still saying that, it's possible, but whether...we can do anything about that remains to be seen."


MONEYWEEK Tue, 18 Mar 2008
in tough economic times like these when inflation is raging, unemployment is climbing, and the economy is falling apart, our government is forced to look into the mirror and create a magical image by reassuring the American people that everything is just fine with the economy, when it’s really not.

Why is it so important for the government to fudge and mangle the price indexes? Well, many government payments like social security and other benefits are tied to inflation, and America is broke. Fudging the price indexes to cut the level of reported inflation is a great way of directly sticking Grandma with a hidden tax increase.

Moreover, economic statistics such as the Gross Domestic Product, (“GDP”) are reported by taking the inflated GDP numbers and adjusting them for inflation. So, if the inflation numbers are understated by even two to three percent, GDP will be overstated by the same percentage. If, because of underreporting for inflation they can overstate economic growth by several percent, not a single politician or government employee – including the staff at the Federal Reserve – would complain. Remember, Washington is a company town where the American people get to pay the salaries and benefits for all government employees!

Indeed, with all this price fixing, the US government, Federal Reserve, and Wall Street stock touts thought that a recession was impossible. In order to show negative GDP, the actual economy would have to be falling by more than three percent. (This means that the recession is actually much worse than the government admits to.)

GUARDIAN Wed, 20 Feb 2008 00:01:12 GMT
Scotland Yard allowed a suspected war criminal to escape from Britain partly because they feared an attempt to stop him would lead to a gun battle at Heathrow airport, police documents seen by the Guardian reveal. The former senior Israeli officer was supposed to be detained as he arrived in London for a speaking engagement, after a British court had ordered his arrest. But detectives looked on as he landed, then hid on the plane for two hours, before flying off to avoid arrest.

A British court had issued a secret arrest warrant for Major General Doron Almog for the alleged war crime under the Geneva convention of ordering the demolition of 59 civilian Palestinian homes.

Israeli diplomats were tipped off after Almog's plane left Israel on September 11 2005. Once it landed in London a military attache from the Israeli embassy boarded the jet and warned Almog to stay on board. He refused to leave the plane until it took off again for Israel, two hours later.

The war crimes arrest warrant was issued by senior district judge Timothy Workman, after an application by British lawyers acting for Palestinian victims of the demolition in 2002 in Gaza. Under British law on war crimes UK courts have jurisdiction to try suspects even if the alleged crimes are committed abroad.

Almog, commanding officer of the Israeli defence forces' southern command from December 2000 to July 2003, was due to arrive at 1.25pm on a flight belonging to El Al, Israel's national carrier.

Those who obtained the warrant say police made errors. The document is written by detective superintendent John MacBrayne, from the counter-terrorism command, who was in charge on the day. It was drafted in response to an Independent Police Complaints Commission investigation.

MacBrayne wrote of events the day Almog landed at Heathrow: "Consideration was given to boarding the El Al flight and DSU MacBrayne sought clarification of his powers to do so with those officials present." Top detectives were told that police routinely boarded flights, but were not sure if they could do so without the permission of the airline.

"It was confirmed that El Al were refusing voluntary access to the plane ... another consideration being that El Al flights carried armed air marshals which raised issues round public safety. There was also no intelligence as to whether Mr Almog would have been travelling with personal security as befitted his status, armed or otherwise. DSU MacBrayne took the considered opinion that, as access to the plane would not be consensual, there existed a real threat of an armed confrontation."

Daniel Machover, a solicitor involved in gaining the warrant, said police did not need permission to board the plane, and could also have stopped it taking off until Almog emerged. The document reveals that before the planned arrest Scotland Yard consulted a police unit called the Communities Tensions Team, for advice on reaction in the British Jewish community. A "trusted partner" of the police, a Jewish contact, was also involved.

The warrant, issued at Bow Street magistrates court, central London, is believed to be the first of its kind issued in Britain against an Israeli national over conduct in the conflict with Palestinians. The attorney general would have had to sanction a prosecution before it went ahead.

Speaking days after avoiding the arrest, Almog told the Guardian he was advised not to leave the plane by the cabin crew. "I don't know how he [the military attache] found out but I am glad he did. It was also fortunate that I was flying with El Al as they are loyal. I don't know what would have happened if I had been on a British Airways flight."

WSWS Sat, 09 Feb 2008

Horrifying allegations of torture and killings carried out by the British Army in southern Iraq emerged on January 31.

Based on witness statements, death certificates and video evidence, the lawyers allege that nine more people survived torture and abuse.

"the allegations were the most harrowing he had ever heard"

“the police asked us to send ambulances to the British base to collect some bodies. When they brought the 22 bodies, it was a surprise to us to see some of these bodies mutilated and tortured.”

At the time, the British Army dismissed allegations of torture as “absurd.” But the case, along with hundreds of accusations arising from its activities in Iraq, has been the subject of calls for a public inquiry ever since. A yearlong investigation by the Royal Military Police (RMP) found no evidence of deliberate mutilation.

On January 31, however, the ban was overturned by Lord Justice Moses following legal moves by the victims’ families, the Guardian, the Times and the BBC. The Guardian reported Moses as ruling that the MoD’s attempt to stop media reporting on the allegations has no basis in law and that their handling of the case was “barmy.”

Regarding the ban on naming soldiers, Moses told the defence secretary’s counsel, “It is not the way it works. If you’re right about that there would be one rule for the Ministry of Defence and another for the ordinary citizen.”

The Majid al Kabir allegations further refute the central point made in a recent report published by the British Army into aspects of its reign of terror in southern Iraq, which whitewashed previous abuses as the result of bad planning, inadequate training and the work of individuals.

Baha Mousa was a 26-year-old hospital worker detained September 2003 during a raid by members of the Queen’s Lancashire regiment on a hotel in Basra. Mousa, who witnessed soldiers stealing cash from the hotel, was arrested along with six other workers at the hotel. All were hooded, bound, subjected to stress positions and brutally beaten for days.

Photographs and records show Mousa suffered 93 injuries, including four broken ribs, a fractured nose, smashed wrists and a ligature around his neck. According to one witness, “I heard Baha Mousa screaming. I was still hooded but it sounded like he was in another room. I heard him scream: ‘Please help me, blood is coming out, please help me, I am going to die.’ The last thing I heard him say was: ‘My nose broke.’ After this there was silence.”

The case was also central to a 2007 ruling by the British Law Lords that the government was in breach of the European convention of Human Rights and the UK’s own Human Rights Act for not conducting an independent inquiry.

Aitken also reported on the outcome of cases against soldiers accused of brutality following a riot in Amara in 2004. A video showing youths being beaten by British troops was passed to the News of the World. No charges were brought.

In the Camp Breadbasket case, four soldiers were finally found guilty of abuse after images showing prisoners being forced to simulate sex were discovered by a worker at a photo-processing shop. Other images showed prisoners suspended from a forklift truck.

“As a senior officer in the Iraqi army, I am clear that these terrible actions could not have taken place without support from senior officers within the British army.”


MONEYWEEK Fri, 08 Feb 2008
When the history of the credit bubble comes to be written, the list of guilty actors will be lengthy indeed: irresponsible banks, greedy borrowers, foolish speculators, incompetent regulators, the central bankers who kept rates too low for too long. Yet one group of players has been especially culpable in creating the current mess. The credit rating agencies ...

For MBIA and Ambac, the maintenance of the highest rating was critical, as any downgrade would automatically transmit itself to the many bonds they insured, threatening a cascade of falling prices. By the end of 2007 it became clear that the insurers’ likely losses would bankrupt them unless they had a multi-billion infusion of new capital. The companies’ share prices reflected this, losing most of their value during the year. The cost of insuring against the bond insurers’ default (easily gauged from the credit derivatives market) at the same rose to levels consistent with a rating in the Cs or Ds – that is, the market had performed its own assessment of these companies’ creditworthiness, and classified them as junk.

Nevertheless, to date Moody’s and Standard and Poor’s have stubbornly refused to downgrade the bond insurers, and their AAA rating remains. Although it is likely that they have come under heavy pressure from the banks and, behind the scenes, from regulators, to avoid a downgrade, the agencies’ unwillingness to recognise the insurers’ high risk of default flies in the face of reality, and is attracting increasing criticism.

It is also perhaps the culmination of the long process of loss of integrity that we have outlined. From acting in their first two decades as the investor’s friend, the credit rating agencies had become thoroughly corrupted by the peak of the bubble in 2007.

For them, the outlook is bleak. Their reputation indelibly tarnished, there must be a significant chance that they will in due course fall victim to lawsuits and bankruptcy themselves

The discrediting of the existing ratings system has also seriously damaged secondary market liquidity: whole swathes of the bond market have simply stopped trading.

For the investor, the lesson learned is an old one – to pay attention to conflicts of interest. Just as the internet bubble showed us that stock tips given by investment banks with a vested interest in selling new shares were worthless, the credit rating scandal has reminded us that we cannot trust a system where the raters are paid by the issuers.

GLOBALRESEARCH Fri, 08 Feb 2008
there's going to be an unprecedented wave of bank closures in the US and that people who want to hold on to their life savings are going have to be extra vigilant as the situation continues to deteriorate. And it is deteriorating very quickly.

Right now, many of the country's largest investment banks are holding $500 billion in mortgage-backed securities and other structured investments that are steadily depreciating in value. As these assets wear-away the banks' capital, the likelihood of default becomes greater. This week, Fitch Ratings announced that it will (probably) cut ratings on the 5 main bond insurers (Ambac, MBIA, FGIC, CIFG,SCA) “regardless of their capital levels”. This seemingly innocuous statement has roiled markets and put Wall Street in a panic. If the bond insurers lose their AAA rating (on an estimated $2.4 trillion of bonds) then the banks could lose another $70 billion in downgraded assets. That would increase their losses from the credit crunch--which began in August 2007---to $200 billion with no end in sight. It would also impair their ability to issue loans to even credit worthy customers which will further dampen growth in the larger economy. Structured investments have been the banks' “cash cow” for nearly a decade, but, suddenly, the trend has shifted into reverse. Revenue streams have dried up and capital is being destroyed at an accelerating pace. The $2 trillion market for collateralized debt obligations (CDOs) is virtually frozen leaving horrendous debts that will have to be written-down leaving the banks' either deeply scarred or insolvent. It's a mess.

There were some interesting developments in a case involving Merrill Lynch last week which sheds a bit of light on the true “market value” of these complex debt-pools called CDOs. The Massachusetts Secretary of State has charged Merrill with “fraud and misrepresentation” for selling them a CDO that was "highly risky and esoteric" and "unsuitable for the City of Springfield.” (Most cities are required by law to only purchase Triple A rated bonds) The city of Springfield bought the CDO less than a year ago for $13.9 million. It is presently valued at $1.2 million---MORE THAN A 90% LOSS IN LESS THAN A YEAR.

Merrill has quietly settled out of court for the full amount and seems genuinely confused by the Massachusetts Secretary of State's apparent anger. A Merrill spokesman said blandly, “We are puzzled by this suit. We have been cooperating with the Secretary of State Galvin's office throughout this inquiry.”

Is it really that hard to understand why people don't like getting ripped of?

This anecdote shows that these exotic mortgage-backed securities are real stinkers. They're worthless. The market for structured debt-instruments has evaporated overnight leaving a massive hole in the banks' balance sheets. The likely outcome will be a rash of defaults followed by greater consolidation of the major players. (re: banking monopolies) The Fed's multi-billion bailout plan; the “Temporary Auction Facility” (TAF) is a quick-fix, but not a permanent solution. The real problem is insolvency, not liquidity.

Surprisingly, there's an even bigger threat to the financial system than these staggering losses at the banks. A default by one of the big bond insurers could trigger a meltdown in the credit-default swaps market, which could lead to the implosion of trillions of dollars in derivatives bets. The inability of the under-capitalized monolines (bond insurers) to “make good” on their coverage is likely to set the first domino in motion by increasing the number of downgrades on bond issues and intensifying the credit-paralysis which already is spreading throughout the system.

“The numbers are so terrible, it's beyond belief,” said Scott Anderson, senior economist at Wells Fargo & Co.