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The Clinton Crash

by J. Orlin Grabbe


In its immodest way, the Clinton administration has long rushed forth to claim credit for every little government economic statistic that looks positive. Not that it can be said to otherwise take statistics very seriously, given its blatant fibs like the one that "Republicans cut Medicare benefits". (Republicans only cut the size of projected increases. Clinton explained that one by telling Wolf Blitzer that it was all the fault of journalists and their use of language, and that he personally was "shocked" when he came to Washington and discovered this. But Clinton wasn't shocked enough to do anything about those Democratic television ads.)

But how would Clinton explain a stock market crash? Having taken credit for everything else that happens in the economy, how can he avoid responsibility for this also? What spin will he pick to push the blame on someone else? Will a crash be the result of Republicans opposing his government plan to deal with the heinous problem of school truancy? Will it be the fault of some underling like Craig Livingstone, operating out of control because no one knew he was there (even when they had their pictures taken with him)?

Perhaps Clinton will go on television to proclaim that the crash is a "buying opportunity", just like those pompous commentators interviewed almost daily on CNBC. After all, when clueless household purchasers of mutual funds declare they are "investing for the long run," it should not come as any surprise that a majority of voters would rate Clinton as having untrustworthy character yet plan to vote for him anyway. A public that would rush to buy inflated stock market high-flyers (including the thirty stocks in the Dow Jones Industrial Average) should not be expected to spend their political capital any more wisely. They are sure Clinton and their broker understand their problems.

While the public keeps its head in the sand, Democratic bigwigs view Clinton as a ticking time bomb. Some of them even gave up their July 4 holiday, the politician's favorite, to plan for the post-Clinton world. They want Bill out of the way as soon as possible, so he won't blow up in their faces in November. Meanwhile, the Clintons themselves have descended into a murky unreality of frenzied media events, hoping all their problems will somehow disappear. In Clinton's Cocaine Habit I reported on the President's consumption of 5 plus lines of cocaine a day. But Hillary has her drug problems also: sagging facial features brought about by the heavy use of tranquilizers ("don't worry, be happy").

The Democrats will hope to dump a stock market crash and all other bad political news on the Clintons, while distancing themselves from the pair. This should become especially popular as it becomes public that the White House "Hit List" (labeled just that way in the White House Office Data Base, WHODB), includes not only Republicans but also some prominent Democratic politicians and journalists.

Democrats will have assistance in wishing Bill a speedy exit. For the days of buried evidence are over. It is said that someone download the entire White House Office Data Base, as well as the Secret Service Data Base, and copies of the files requested from the FBI data base, and turned them all over to the Special Prosecutor, Kenneth Starr. (And only a naif would believe James Steward's interpretation in The New Yorker that Starr will withhold his evidence and indictments till after the election. Why ever would Starr want to leave the good voters of America in ignorance?)

It's not all fun and games for the Republicans either. Republican bigwigs are desperately trying to figure out how they can get rid of a distinct liability-- namely, Bob Dole. Well, the Fifth Column got Dole to resign from the Senate. Surely the bigwigs can handle the little matter of denying Dole the nomination all by themselves. Or would the Republicans prefer to commit political suicide even while Clinton crumbles?

How will history explain the crash? Has the market only foreshadowed the "leadership vacuum" to emerge as Starr indicts Hillary and Clinton subsequently resigns? One seriously doubts history will treat Clinton as leader that kindly. He has too much baggage. As if Whitewater-Travelgate-Fostergate-Filegate were not enough, there is also the little issue of Clinton's involvement in the Mena drugs and arms smuggling. This isn't going away either, because the birds in Arkansas have begun to sing.

Accuracy in Media (AIM), an outlet for Mossad propaganda, has long dumped on the Vince Foster story as related by Jim Norman and me for the simple reason that Foster was spying for Israel. Likewise, to my observation, the Mossad has done more than even the CIA to bury the truth about Mena, because of the pronounced Mossad involvement in arms and drug smuggling and money laundering between Panama and Arkansas. Jim Leach's House Banking Committee recently dropped its probe into Mena on the advice of its new consultant, Jack Blum, himself an investigator with Mossad connections as well as a spreader of lies. (I know what he said about me.)

As I noted in Some Observations on the Non-News, the Mena operation has been largely shifted to Montana, and (as was true in Arkansas) the state governor has a hand in the business. In recent days Montana Republican Governor Marc Racicot has been out demanding that anyone who has implied he was in any way involved in drug dealing retract their statements. Well, Mr Racicot, if I were governor I would shut my own mouth, since you will undoubtedly find it a less unpleasant experience when the ton of shit I smell coming lands on your head. In an interview in the current issue of Media Bypass, Charles S. Hayes (the "Angel of Death") notes that "No one in the press reported about the huge influx of narcotics into that state [Montana]. It would not surprise me nor anyone in the federal government if in the near future the governor of Montana is indicted for complicity in this activity."

Nor would it surprise anyone to see FBI agents indicted in Montana and New Orleans for involvement in drug trafficking. Louis Freeh, who explained the errant use of his files as abuse of the FBI by the White House will perhaps now explain the errant use of his agents as abuse of the FBI by the Cali cartel.

Will history say the stock market crash and ensuing banking crisis derived from strains created by massive shifts in the flows of funds connected with the international arms and drug trade? This flow of funds is the common thread that ties corrupt politicians to corrupt current and ex-government officials. Certainly there are enough politicians and banks in trouble.

The banks in one country noted as a haven for flight capital found an innovative way to stem the $20 billion hemorrhage of their deposits. (Did these banks have a small security problem? Some of them cut their 24-hour modem access down to 15 minutes. Naturally their corporate customers were not pleased.) But these banks managed to find a strong lender of last resort and to trade sovereignty for solvency. But such solutions are not available to everyone.

Take Credit Lyonnais. CL is said to be looking for a loan of $2 to $3 billion--it needs a capital infusion desperately. No takers. The Bank of England ships hundreds of millions of dollars in gold bullion to an irate Korea in the continuing arms-money-laundering saga there. No embarrassing questions, please. Investigators at Citibank wonder how Raul Salinas of Mexico was able to launder so much money through that institution. Citibank says it has no idea: these things just happen. Money laundering at Chase led to a forced merger with Chemical. Will the First National Bank of Anchorage and Norwest Bank of Montana be next? Sumitomo, missing a couple billion dollars, has to maintain the pretense it doesn't launder heroin money. But every international banker worth his salt knows otherwise.

Some think the stock market is going to 10,000. Some think Bill Clinton will be the Democratic nominee this November. Some think Vince Foster wasn't a spy for Israel. Some think official government agencies don't deal drugs. Some think the FBI is a chartered organization. Some think the Basle Committee has solved all international banking crises.

Some had better get ready for a rude awakening.

July 15, 1996