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The Swiss Will Not Have More EU QE

January 21, 2015 by · Leave a Comment 

In the ridiculous charade that passes for the foreign exchange currency markets, the ease upon which a 39% spike in the Swiss Franc to the EU has most financial journalist puzzled. A flagship of establishment journalism like the Washington Post provides a quaint explanation in Why Switzerland’s currency is going historically crazy. The Swiss intend to keep their exchange rate at 1.2 Swiss francs per euro caused unsustainable negative competiveness in Swiss exports to EU customers. How many times have you heard that same old song? Corporatist media consistently spins a yarn that suppressing one’s own currency is good for business.

Rely on viewpoints from reliable sources like The Economic Collapse. Their insight should be obvious to anyone with an ounce of common sense left. “The euro is falling apart, and the Swiss did not want to be married to it any longer.  Unfortunately, when any marriage ends the pain can be enormous.”

Peter Schiff, who is a major precious metal dealer, is getting a boost in this latest development. The article Switzerland Surrenders the Currency War, but America Still Racing to the Bottom published in the Libertarian and Austrian Economic site, Lewrockwell.com provides an expected response.

“The Swiss are going to be able to get a better deal on all the products that they import from Europe and from other countries, so they won’t have to export as much to pay for their imports. So that’s positive for the Swiss. I would be worried about the Europeans who are now going to have to spend more money to buy Swiss products. They’re the ones that hurt, as are Americans. Swiss products are now going to be more expensive for Americans, but American products… are going to be cheaper for the Swiss. So the Swiss win because they have a stronger currency, and Europeans and Americans lose because we have a weaker currency… “

These conclusions are so basic and correct that when mainline economists preach their financial orthodoxy, the idiocy of the “Free Trade” hoax screams out for a sense of monetary sanity.

Not to spoil the cheers for the Swiss, an important component must be factored in. When the Swiss Voters Reject Initiative on Central-Bank Gold, the hard money advocates expressed great disappointment.

“Swiss voters overwhelmingly rejected an initiative on Sunday that would have forced the country’s central bank to hold one-fifth of its assets in gold, a move that would have eroded its ability to conduct monetary policy.

Critics of the initiative feared that the SNB’s commitment to the cap would have been challenged because the central bank would have been forced to buy gold every time it intervened in the currency market.”

This result seems to reinforce that the gnomes of central banking were once again in control of their gold hoards and refused to share any of its value with the holders of the Swiss Franc.

So how can one account, after rejecting the plebiscite on adopting making the Swiss Franc as a real hard money value currency that the exchange rates raise so sharply?

Fundamentals and measures that favor and protect the wealth of a national currency are not applied as standards, when central Banksters play the money float game. In order to understand why the Swiss Franc surged, one must examine the sickness within the EU and the extreme pressure on the EURO coming from desperate measures to keep the single European currency afloat.

The panic begins as the ECB Stimulation: The Trap Closes. Last week the EU Court of Justice advocate general ruled that the central bank could purchase sovereign debt.

“It referred to an existing ECB program called Outright Monetary Transactions — which isn’t quite QE but which does involve purchases of government bonds. The court won’t rule for another four to six months, but it’s likely to follow the advocate general’s guidance. That’s good enough for Draghi to act now.

Many in Europe, especially in Germany, remain opposed. They see QE as a ruse by which the richer members of the currency bloc will end up paying for the fiscal misadventures of their neighbors.”

Let the race begin and only the quickest will be left sitting tight, when the music stops playing. It seems that Steen Jakobsen writing in Endgame for central bankers agrees.

“Many central banks will envy the SNB (Swiss National Bank) for its move last week, as it at least tries to regain some control of its future, but the conclusion remains: central banks have as a group lost credibility and when the ECB starts QE this week the beginning of the end for central banks is completed. They are running out of time – that’s the real real bottom line: the SNB ran out of time, the ECB runs out of time this week, and the Fed, Bank of Japan and the Bank of England ran out of time in 2014.

What comes now is a new reality – the SNB move was true paradigm shift – we can no longer look at central banks, the markets and extend-and-pretend in the same light as we did last Wednesday (the day before the SNB pounced).”

Now for the kicker . . . When a solid financial adviser acknowledges in their financial letter, like Chris Hunter, Editor-in-Chief, Bonner & Partners – Did the Swiss Just Burst the “Central Bank Bubble”?, that the crown prince of collectivist economics condemns the Swiss; you know they were correct in ditching their peg ratio to the EURO.

“We usually don’t see eye to eye with economist Paul Krugman. But he’s hit the nail on the head about the “Swiss shock.” From his New York Times column: “The SNB’s wimp-out will make life harder for monetary policy in other countries, because it will leave markets skeptical about whether other supposed commitments to keep up unconventional policy will similarly prove time-limited.”

How evil those Swiss must be to actually defend their currency and their own wealth. As the EU implodes, the smart money will sit out the coming grand depression, provided by your friendly central banks, in the charm of the Swiss Alps.


Sartre is the publisher, editor, and writer for Breaking All The Rules. He can be reached at: BATR

Sartre is a regular columnist for Veracity Voice

Are Plunging Petrodollar Revenues Behind The Fed’s Projected Rate Hikes?

January 21, 2015 by · Leave a Comment 

If This Doesn’t Make You Mad…

Why is the Fed threatening to raise interest rates when the economy is still in the doldrums? Is it because they want to avoid further asset-price inflation, prevent the economy from overheating, or is it something else altogether? Take a look at the chart below and you’ll see why the Fed might want to raise rates prematurely. It all has to do with the sharp decline in petrodollars that are no longer recycling into US financial assets. This is from Reuters:

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Petrodollar Exports
Source: Reuters

“Energy-exporting countries are set to pull their ‘petrodollars’ out of world markets this year for the first time in almost two decades, according to a study by BNP Paribas. Driven by this year’s drop in oil prices, the shift is likely to cause global market liquidity to fall, the study showed…

This decline follows years of windfalls for oil exporters such as Russia, Angola, Saudi Arabia and Nigeria. Much of that money found its way into financial markets, helping to boost asset prices and keep the cost of borrowing down, through so-called petrodollar recycling.

This year, however, the oil producers will effectively import capital amounting to $7.6 billion. By comparison, they exported $60 billion in 2013 and $248 billion in 2012, according to the following graphic based on BNP Paribas calculations:

‘At its peak, about $500 billion a year was being recycled back into financial markets. This will be the first year in a long time that energy exporters will be sucking capital out,’ said David Spegel, global head of emerging market sovereign and corporate Research at BNP.

In other words, oil exporters are now pulling liquidity out of financial markets rather than putting money in. That could result in higher borrowing costs for governments, companies, and ultimately, consumers as money becomes scarcer.” (Petrodollars leave world markets for first time in 18 years – BNP, Reuters)

Can you see what’s going on?

Now that petrodollar funding has dried up, the Fed needs to find an alternate source of capital to keep the markets bubbly and to shore up the greenback. That’s why the Fed has been talking up the dollar (“jawboning”) and promising to raise rates even though the economy is still pushing up daisies. According to the Fed’s favorite mouthpiece, Jon Hilsenrath:

“Federal Reserve officials are on track to start raising short-term interest rates later this year, even though long-term rates are going in the other direction amid new investor worries about weak global growth, falling oil prices and slowing consumer price inflation…

Many Fed officials have signaled they expect to start lifting their benchmark short-term rate from near zero around the middle of the year. Recent developments in the economy and markets have caused some trepidation among Fed officials and, if sustained, could cause them to delay acting. However several have indicated recently they still expect to move this year and are withholding judgment on delay.” (Fed Officials on Track to Raise Short-Term Rates Later in the Year, Jon Hilsenrath, Wall Street Journal)

And we’re hearing the same from Reuters: “The Federal Reserve is still on track for a potential mid-year interest-rate increase, a top Fed official said on Friday, citing strong U.S. economic momentum and a falling unemployment rate.”

Notice the sudden change in tone from dovish to hawkish? Expect that to intensify in the months ahead as the major media tries to spin the data in a way that serves the Fed’s broader objectives. Like this article in Bloomberg titled, “Yellen Signals She Won’t Babysit Markets in Turmoil”:

“Janet Yellen is leaving the Greenspan ‘put”’behind as she charts the first interest-rate increase since 2006 amid growing financial-market volatility.

The Federal Reserve chair has signaled she wants to place the economic outlook at the center of policy making, while looking past short-term market fluctuations. To succeed, she must wean investors from the notion, which gained currency under predecessor Alan Greenspan, that the Fed will bail them out if their bets go bad — just as a put option protects against a drop in stock prices.

“The succession of Fed puts over the years has led to a wide range of distortions in financial markets,” said Lawrence Goodman, president of the Center for Financial Stability, a monetary research group in New York. “There have been swollen asset values followed by sharp declines. This is a very good time for the Fed to move away.

“Let me be clear, there is no Fed equity market put,” William C. Dudley, president of the New York Fed, the central bank’s watchdog on financial markets, said in a Dec. 1 speech in New York.” (She’s No Greenspan: Yellen Signals She Won’t Babysit Markets in Turmoil)

“There’s no Fed equity put”?

That’s ridiculous. Then how does one explain the way the Fed has launched additional rounds of QE every time stocks have started to sputter? And how does one explain the Fed’s $4 trillion balance sheet all of which was spent on financial assets?

Let’s face it, Central bank intervention has been the only game in town. It’s not just the main driver of stocks. It’s the only driver of stocks. Everyone knows that. Yellen is going to do everything in her power to keep stocks in the stratosphere just like her predecessors, Greenspan and Bernanke. The only that’s going to change, is her approach.

As for the economy, well, just a glance of the headlines tells the whole story. Like this gem from CNBC last week:

“U.S. consumer prices recorded their biggest decline in six years in December and underlying inflation pressures were benign,…The Labor Department said on Friday its Consumer Price Index fell 0.4 percent last month, the largest drop since December 2008, after sliding 0.3 percent in November. In the 12 months through December, CPI increased 0.8 percent…

Darkening prospects for the global economy could also complicate matters for the U.S. central bank.

Inflation is running below the Fed’s 2 percent target, despite a strengthening labor market and overall economy.” (Consumer Price Index drops 0.4% in December, in line with estimates, CNBC)

Think about that for a minute: Consumer prices just logged their biggest drop since the freaking slump of 2008 and, yet, the Fed is still babbling about raising rates.

Talk about lunacy. Not only has the Fed not reached its inflation target of 2%, but it’s abandoned the project altogether. Why? Why has the Fed suddenly stopped trying to boost inflation when the yields on benchmark 10-year US Treasuries have just plunged to record lows (1.70%) and are blinking red? In other words, the bond market is signaling slow growth and zero inflation for as far as the eye can see, but the Fed wants to raise rates and slash growth even more?? It doesn’t make any sense, unless of course, Yellen has something else up her sleeve. Which she does.

Now get a load of this shocker on retail sales in last week’s news. This is from Bloomberg:

“The optimism surrounding the outlook for U.S. consumers was taken down a notch as retail sales slumped in December by the most in almost a year, prompting some economists to lower spending and growth forecasts.
The 0.9 percent decline in purchases …. extended beyond any single group as receipts fell in nine of 13 major retail categories.

Treasury yields and stocks fell as a deepening commodities rout and the drop in sales spurred concern global growth is slowing…

…average hourly earnings falling 0.2 percent in December from the month before in the first drop since late 2012. That limits the amount of spending consumers can undertake without dipping into savings or racking up debt.” (U.S. Retail Sales Down Sharply, Likely Cuts to Growth Forecasts Ahead, Bloomberg)

Remember when everyone thought that low oil prices were going to save the economy? It hasn’t worked out that way though, has it? Nor will it. Falling oil prices usually indicate recession, crisis or deflation. Take your pick. They’re usually not a sign of green shoots, escape velocity, or sunny uplands.

And did you catch that part about falling wages? How do you expand a consumer-dependent economy, when workers are seeing their wages shrivel every month? In case, you haven’t seen the abysmal stagnation of wages in graph-form, here’s a chart from American Progress:

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Negative real wage growth means the amount of slack in the market is still considerable.

So while stock prices have doubled or tripled in the last 6 years, wages have basically been flatlining. That’s a pretty crummy distribution system, don’t you think. Unless you’re in the 1 percent of course, then everything is just hunky dory.

But at least Yellen can find some comfort in the fact that unemployment continues to improve. In fact, just two weeks ago unemployment dropped to an impressive 5.4%, the lowest since 2007. So if we forget about the fact that wages are stagnating, that management has nabbed all the productivity-gains for the last 40 years, and that another 451,000 workers dropped off the radar altogether in December, then everything looks pretty rosy. But, of course, it’s all just a bunch of baloney. Take a look at this from Zero Hedge:

“Another month, another attempt by the BLS to mask the collapse in the US labor force with a seasonally-adjusted surge in waiter, bartender and other low-paying jobs. Case in point… the labor participation rate just slid once more, dropping to 62.7%, or the lowest print since December 1977. This happened because the number of Americans not in the labor forced soared by 451,000 in December, far outpacing the 111,000 jobs added according to the Household Survey, and is the primary reason why the number of uenmployed Americans dropped by 383,000.

unnamed

(Labor Participation Rate Drops To Fresh 38 Year Low; Record 92.9 Million Americans Not In Labor Force, Zero Hedge)

So, yeah, unemployment looks great until you pick through the data and see it’s all a big fraud. Unemployment is only falling because more and more people are throwing in the towel and giving up entirely.

Finally, there’s the rapidly-expanding mess in the oil patch where the news on layoffs and cut backs gets worse by the day. This is from Wolf Richter at Naked Capitalism:

“Layoffs are cascading through the oil and gas sector. On Tuesday, the Dallas Fed projected that in Texas alone, 140,000 jobs could be eliminated. Halliburton said that it was axing an undisclosed number of people in Houston. Suncor Energy, Canada’s largest oil producer, will dump 1,000 workers in its tar-sands projects. Helmerich & Payne is idling rigs and cutting jobs. Smaller companies are slashing projects and jobs at an even faster pace. And now Slumberger, the world’s biggest oilfield-services company, will cut 9,000 jobs.” (Money dries up for oil and gas, layoffs spread, write-offs start, Wolf Richter, Naked Capitalism)

And then there’s this tidbit from Pam Martens at Wall Street on Parade:

“In a December 15 article by Patrick Jenkins in the Financial Times, readers learned that data from Barclays indicated that “energy bonds now make up nearly 16 per cent of the $1.3 trillion junk bond market — more than three times their proportion 10 years ago,” and “Nearly 45 per cent of this year’s non-investment grade syndicated loans have been in oil and gas.” Raising further alarms, AllianceBernstein has released research suggesting that the deals were not fully subscribed by investors with the potential that “as much as half of the outstanding financing from the past couple of years may be stuck on banks’ books.” (The perfect storm for Wall Street banks, Russ and Pam Martens, Wall Street on Parade)

How do you like that? So nearly half the toxic energy-related gunk that was bundled up into dodgy junk bonds (and is likely to default in the near future) is sitting on bank balance sheets. Does that sound like a potential trigger for another financial crisis or what?

And, no, I am not trying to ignore the fact that third quarter GDP came in at a whopping 5 percent which vastly exceeded all the analysts estimates. But let’s put that into perspective. According to economist Dean Baker, the growth spurt was mainly “an anomaly” …”driven by extraordinary jump in military spending and a big fall in the size of the trade deficit that is unlikely to be repeated.” Here’s more from Baker:

“As usual, just about everything we’ve heard about the economy is wrong. To start, the 5.0 percent growth number must be understood against a darker backdrop: The economy actually shrank at a 2.1 percent annual rate in the first quarter. If we take the first three quarters of the year together, the average growth rate was a more modest 2.5 percent.” (Don’t Believe What You Hear About the US Economy, Dean Baker, CEPR)

So, the economy is growing at a crummy 2.5 percent, but Yellen wants to raise rates. Why? Does she want to shave that number to 2 percent or 1.5 percent? Is that it? She wants to go backwards?

Of course not. The real reason the Fed wants to raise rates, is to attract foreign capital to US markets in order to keep stocks soaring, keep borrowing costs low, and reinforce the dollar’s role as the world’s reserve currency. That’s what’s really going on. The petrodollars are drying up, so US markets need a new source of funding. Direct foreign investment, that’s the ticket, Ducky. All the Fed needs to do is boost rates by, let’s say, 0.5 percent and “Cha-ching”, here comes the capital. Works like a charm every time, just ask former Treasury Secretary Robert Rubin whose strong dollar policy sent stock prices into orbit while widening the nation’s current account deficit by many orders of magnitude. (We never said the plan didn’t have its downside.)

The Fed’s sinister plan to raise interest rates (sometime by mid-2015) will push the dollar’s exchange rate higher thus triggering capital flight in the emerging markets which are already struggling with plunging commodities prices and an excruciating slowdown. The investment flows from the EMs to US financial assets and Treasuries will offset the loss of petrodollar revenue while expanding Wall Street’s ginormous stock market bubble. As for the emerging markets, well, they’re going to take it in the shorts bigtime as one would expect. Here’s a clip from an article by Ambrose-Evans Pritchard that lays it out in black and white:

“The US Federal Reserve has pulled the trigger. Emerging markets must now brace for their ordeal by fire. They have collectively borrowed $5.7 trillion in US dollars, a currency they cannot print and do not control. This hard-currency debt has tripled in a decade, split between $3.1 trillion in bank loans and $2.6 trillion in bonds. It is comparable in scale and ratio-terms to any of the biggest cross-border lending sprees of the past two centuries…

Officials from the Bank for International Settlements say privately that developing countries may be just as vulnerable to a dollar shock as they were in the Fed tightening cycle of the late 1990s, which culminated in Russia’s default and the East Asia Crisis. The difference this time is that emerging markets have grown to be half the world economy. Their aggregate debt levels have reached a record 175pc of GDP, up 30 percentage points since 2009…”

This time the threat does not come from insolvent states. They have learned the lesson of the late 1990s. Few have dollar debts. But their companies and banks most certainly do, some 70pc of GDP in Russia, for example. This amounts to much the same thing in macro-economic terms. ” (Fed calls time on $5.7 trillion of emerging market dollar debt, Ambrose-Evans Pritchard, Telegraph)

The Fed has been through this drill so many times before they could do it in their sleep. (” U.S. interest-rate hikes in 1980s and 1990s played a role in financial crises across Latin America and East Asia.” Foreign Policy Magazine) They’ve learned how to profit off every crisis, particularly the one’s that they themselves create, which is just about all of them. In this case, most of the loans to foreign businesses and banks were denominated in dollars. So, now that the dollar is soaring, (“The dollar’s value has risen about 15 percent relative to the euro and the yen just since the summer.” NPR) the debts are going to balloon accordingly (in real terms) which is going to push a lot of businesses off a cliff forcing sovereigns to step in and provide emergency bailouts.

Did someone say “looming financial crisis”?

Indeed. Bernanke’s “easy money” has inflated bubbles across the planet. Now these bubbles are about to burst due to the strong dollar and anticipated higher rates. At the same time, the policy-switch will send hundreds of billions of foreign capital flooding into US markets pushing stocks and bonds through the roof while generating mega-profits for JPM, G-Sax and the rest of the Wall Street gang. All according to plan.

Naturally, the stronger dollar will weigh heavily on employment and exports as foreign imports become cheaper and more attractive to US consumers. That will reduce hiring at home. Also the current account deficit will widen significantly, meaning that the US will again be consuming much more than it produces. (This took place under Rubin, too.) But here’s what’s interesting about that: According to the Bureau of Economic Analysis: “Our current account deficit has narrowed sharply since the crisis…The U.S. current account deficit now stands at 2.5 percent of GDP, down from more than 6 percent in the fourth quarter of 2005.” (BEA)

Great. In other words, Obama’s obsessive fiscal belt-tightening lowered the deficits enough so that Wall Street can “party on” for the foreseeable future, ignoring the gigantic bubbles they’re inflating or the emerging market economies that are about to be decimated in this latest dollar swindle.

If that doesn’t make you mad, I don’t know what will.


Mike Whitney is a regular columnist for Veracity Voice

Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com

Will Freedom Survive 2015?

January 18, 2015 by · 4 Comments 

Something as precious and valuable as a nation’s freedom is not lost in a day–or even in a year. There is no single event that turns citizens into slaves. Oppression and tyranny are always long in the planning–and even longer in the making. Granted, there could be a single chain of events that results in a people’s enslavement: Lenin’s Bolshevik Revolution in 1917 Russia, Mao Zedong’s Communist Revolution in 1949 China, for example. But these events did not take place spontaneously or in a vacuum. Conditions for these enslavements had been ripening for years. Old barns don’t collapse without years–even decades–of mitigating factors (very obvious and noticeable factors). Neither do nations.

They say that we begin to die as soon as we are born. And in a philosophical meandering sort of way, I suppose that’s true. And if that maxim is true for individuals, it’s also true for nations. For example, the tyrant and betrayer of the U.S. Constitution and Bill of Rights, Abraham Lincoln, planted the seeds for the globalist Woodrow Wilson, who planted the seeds for the socialist Franklin D. Roosevelt, who planted the seeds for the corrupt Lyndon Baines Johnson, who planted the seeds for the narcissist Bill Clinton, who planted the seeds for Mr. Police State, George W. Bush, who planted the seeds for the Marxist Barack Obama. And all along the way there were Supreme Court justices, congressmen and senators, international bankers, and most of all very lethargic and lazy pastors, who facilitated and abetted the diabolical and duplicitous deeds of the aforementioned presidents.

In a very real and practical way, the American republic was birthed as a strong and healthy body amidst the blood of the patriots in 1775 and ‘76. Suffice it to say, the free republic of our forefathers is a very weak and diseased body today.

The malady that eventually takes the life out of a sick and diseased man may not have, by itself, been deadly, but coupled with years of preceding sicknesses, it is the one that is listed on the death certificate by the coroner as the cause of death. Such is also the case with a nation.

The numerous ostriches that are so quick to dismiss every national warning as being just another Chicken Little false alarm continue to dismiss any new attempt to awaken a distracted people with what should be obvious to anyone who can see. In truth, the vast majority of Americans are behaving exactly as did the very rich and pompous passengers on board the Titanic. As the stewards were rushing room to room and cabin to cabin warning passengers that the ship was sinking, they continued to frolic and dance, completely deaf and indifferent to the cries of the porters.

On the whole, the American people have ignored the warnings of freedom’s faithful stewards such as Barry Goldwater, Pat Buchanan, and Ron Paul. For the most part, the criers of liberty on the Internet and in talk radio are also ignored.

There are several reasons why so few seem to even see the water rushing up the floors of the ship of state. For one thing, too many of our men have abdicated their manhood. In the glorious history of liberty, when one would observe men with painted faces, they were marching into battle. Today, they are marching into football stadiums. Sports are more than a pastime; they are an addiction. Today’s American men are so beset by sports and pornography that they can barely see the reality that is staring them in the face.

A lying, deceitful, and deliberately conspiratorial national news media is also a major contributor to the collapse of the American republic. No doubt about it! Nazi Germany’s Joseph Goebbels had NOTHING on the propaganda machinery of the American mainstream news media. Put our public (and many private) education system on the list, as well. Yes, the entertainment pimps, who have sold their souls to lust and perniciousness and who love to corrupt the morals of young people, should also be on the list. And, last but not least, a very passive, indifferent, feel-good, corporate Church might possibly be the worst offender of all.

As we enter into 2015, all of the above are already eating the flesh away from Lady Liberty. The condition is near-terminal. Even worse is the recent prognosis of what can only be regarded as the final stage for this morally and politically cancerous-ridden body: the Police State.

Just recently, Ron Paul wrote, “If Americans were honest with themselves they would acknowledge that the Republic is no more. We now live in a police state.”

See Dr. Paul’s excellent column here:

Inner City Turmoil And Other Crises: My Predictions For 2015

Ron is right! “We NOW [emphasis added] live in a police state.” We are not HEADED for a Police State; we are IN a Police State.

Perhaps not surprisingly, people who escaped totalitarian regimes in other countries and fled to America are the ones who more readily recognize the rise of totalitarianism here in the U.S. than those of us who were blessed to be born here.

Realizing the ostriches will bury their heads in the sand after reading what I’m about to say, I’ll say it again, anyway: the problem is NOT drugs; the problem is the WAR on drugs. The problem is NOT Muslim countries; the problem is an interventionist foreign policy which has waged WAR on Muslim countries for decades. The problem is NOT poverty; the problem is the WAR on poverty. The problem is NOT terror; the problem is the WAR on terror; the problem is NOT racism; the problem is the WAR on racism. The problem is NOT political correctness; the problem is the WAR against political incorrectness. The problem is NOT America’s Christian heritage; the problem is the WAR against America’s Christian heritage. The problem is NOT free speech; the problem is the WAR against free speech. The problem is NOT the U.S. Constitution and Bill of Rights; the problem is the WAR against the U.S. Constitution and the Bill of Rights. The problem is NOT firearms in the hands of law-abiding citizens; the problem is the WAR against the Second Amendment. The problem is NOT that people hate us because we are free; the problem is they hate us because we make WAR against their freedom when it doesn’t comport with the globalists in Washington, D.C., New York, and London.

A Police State is the practical result of everything mentioned in the paragraph above. And a Police State is the final stage of a nation that is losing its liberty.

And in case someone is forwarding this column to a friend or relative who is still in the dark that, yes, America is ALREADY living under a Police State, I invite them to keep an eye on the Police State page on my website for continuing examples of that reality. See it here:

Emerging Police State

But I warn you: be prepared to spend a lot of time getting current, because the facts and realities that America is already a Police State are multitudinous.

The only remaining question is when will the PTB (Powers That Be) decide to collapse the curtain? Will it be 2015?

We are being set up BIG TIME for another faux-9/11 event: Ferguson; the Paris attacks; ISIS; Senator Dianne Feinstein talking about terror cells already being in the states; Senator Lindsey Graham’s fear-mongering; Senator John McCain’s fear-mongering; the media’s ubiquitous assault against the Second Amendment; the Supreme Court’s continuous rubber stamping of domestic spying; an arrogant White House that illegally acts with impunity against the liberties of the American people; a cowardly and complicit Republican Party that works to protect the big-business interests of Wall Street more than the liberties of the people on Main Street; ad infinitum.

No, I suppose there is one last question: will the American people ever wake up? And, of course, the even greater question is, will the Church ever wake up?

Folks, when the Police State is fully functioning, there is no place to go except into submission or revolution. But revolution without righteousness is no solution at all. Rightly did Patrick Henry call it, “the holy cause of Liberty.” Without an understanding of the undergirding Natural Law principles of liberty, without an understanding of the rightness and justness of liberty, without a moral and reasoned conviction in the hearts and minds of men regarding liberty as the divine will of our Creator, no revolution could be blessed of Heaven. And that’s where the pastors and churches come in; and that’s where the pastors and churches are failing–and failing MISERABLY.

Will freedom survive 2015? There have been a myriad of contributing factors to America’s demise extending over a long period of time, but a Police State is the last and final stage of a diseased and dying nation. We are in that stage NOW. And America’s pastors are the only antidote.

This is no game, folks. If you believe in liberty for our country and for your children, you must get out of these corporate churches that are dancing with the devil and letting the forces of hell obliterate our liberties. If your pastor isn’t preaching the Biblical Natural Law principles of liberty, find one who will.

Let me ask it this way: will freedom survive 2015 if it depended on the pastor of the church that you now attend? If the answer is “No,” why are you still there?


Chuck Baldwin is a regular columnist for Veracity Voice

You can reach him at: chuck@chuckbaldwinlive.com
Please visit Chuck’s web site at: http://www.chuckbaldwinlive.com

Muslims And The Left’s Death By Tolerance

January 17, 2015 by · Leave a Comment 

Aside from the three Muslim men who perpetrated the deadliest terror attack in France since 1961, there are some other individuals complicit in the Wednesday massacre. They have names such as Hollande, Merkel, Löfven and Obama. Their connection to the act will largely go unnoticed and unapprehended — and they likely will never be held to account.

In the wake of the brutality at the offices of satirical magazine Charlie Hebdo, socialist French president Francois Hollande called for tolerance.

I call for intolerance.

The difference between us isn’t that, relatively speaking, I lack the quality. I have a lot of practice exercising tolerance because I have far more to tolerate — not the least of which is the political power and policies of people such as Hollande, Merkel, Löfven and Obama. The real difference is that I actually know what tolerance means.

Tolerance always implies a perceived negative. You wouldn’t have to tolerate a delectable meal or a beautiful car; you relish those things. But you would have to tolerate a stubborn cold, a painful rash or foul weather. So Tolerance Lesson One for Leftists:

If you say you’re tolerant of Muslims, it implies that you consider them a negative.

If you don’t — if instead you like them or just view them neutrally — tolerance doesn’t enter the equation.

Of course, not everything we perceive as negative actually is so. We may dislike broccoli, but tolerate it in order to avoid offending a host or for health reasons. In such cases, when the perceived negative is not objectively negative and there are good reasons to put up with it, tolerance can be a great exercise of virtue.

It also can be virtuous when dealing with an objective negative (ON), such as unjust imprisonment or a terminal illness, that you cannot remedy. Soldiering on nobly in such situations often builds great character and provides inspiration for others.

But what of when at issue is an ON that can be remedied? This brings us to Tolerance Lesson Two for Leftists:

The only virtue in this case lies in wiping the negative out.

Unlike when bearing up nobly in the face intractable ONs, tolerating those that could be eliminated renders one guilty of a failure of omission; it is dereliction of moral duty. An example would be a man who could prevent someone from habitually invading his home and endangering his family, but who fails to do so out of neglect, cowardice or in deference to twisted ideology. (This could, by the way, be viewed as a microcosm of something that perhaps, just maybe, we might want to start having an honest national discussion about.) Another example was when the Spaniards encountered the bloody-altar Aztecs in 16th-century Mexico; they didn’t say “Hey, tearing the hearts out of thousands of innocents while they’re still alive and hanging their body parts in the marketplace isn’t our thing, but we’re good multiculturalists and don’t impose values.” They were intolerant — and, thankfully, an intolerable Hades-born “religion” was vanquished.

Also note that since being neglectful, a coward or a twisted ideologue is an ON itself, it generally doesn’t engender respect. Remember that allowing the continued existence of remediable ONs sometimes amounts to a person letting himself be used as a doormat. And people wipe their feet on doormats. Of course, other times an individual won’t perceive the ON as a negative; noteworthy here is that ingested poison will kill you whether you recognize it as poison or not.

Many interesting lessons on tolerance could be learned from the Muslim world. Note that when pious Muslims perceive something as negative (this isn’t to imply that all their perceptions are accurate), they often stop at nothing to wipe it out. Just consider the tens of thousands of non-Muslims killed and thousands of churches burned by jihadists during the last decade, the enforcement of Sharia law, and the Muslim-conquered parts of European cities euphemistically known as no-go zones.

The leftist response to this Islamic chauvinism is well exemplified by the reaction to the 2014 “Trojan horse scandal,” involving the supplanting of Western curricula by Islamist doctrine in seven London schools. Critiquing one offending institution, British officials noted that pupils didn’t “learn about different faiths and cultures” and, critiquing another — and this is the money line — said that students “understanding of…mutual respect and tolerance…is underdeveloped.” “Ah, yes, these Muslims just need to be tolerant like us,” say the good leftists.

Talk about being dimmer than a 15-watt bulb in a North Korean night.

Since these Muslims view other faiths and cultures as inferior to their own, as negatives, they would have to be tolerant of them — if they didn’t think they could vanquish them. But because they’re making great headway on that front, they have no need to be tolerant. You needn’t tolerate what you can terminate.

And they’re really just taking a leaf out of the left’s book. How tolerant are liberals, really? Remember again, the only test of tolerance is how well you abide things you dislike. And no one is more vicious in destroying perceived negatives than leftists. Just ask the people who’ve lost jobs for defending marriage or criticizing homosexual behavior, such as former Mozilla CEO Brendan Eich or ex-Atlanta fire chiefKelvin Cochran. Ask those punished under hate-speech laws or bitten by speech codes on college campuses. Ask the bakers and other Christian businessmen put out of business for refusing to be party to homosexual “weddings.” The reality is that when leftists hate something — and it is all emotion with them — they have no mercy. (Mind you, this is one reason liberals accuse conservatives of being “haters”; it’s projection. Governed by emotion, they only oppose what they despise, so they naturally view opposition as synonymous with hatred.)

So leftists’ calls for tolerance amount to a request that Muslims and others practice what leftists themselves merely preach. But if you consider their working definition of the word — confusing tolerance with affinity or indifference — there is an irony here: these secular fundamentalists have the same message the Islamic fundamentalists do:

Believe what we believe.

Like what we like.

Hate what we hate.

Become one with our collective.

And we can live in peace.

Secular and Islamic fundamentalists have something else in common. Both groups have many perceived negatives that aren’t actually objectively negative, so they try to wipe out the wrong things. Thus do they work together to destroy Christianity and Western civilization. And this is why I named as co-conspirators in the Paris attack Francois Hollande, Angela Merkel, Stefan Löfven and Barack Obama. But this brings me to my last Tolerance Lesson for Leftists, and I direct my words now specifically to leftists: There’s something else pious Muslims perceive as a negative, and it also happens to be something that is an objective negative.

You.


Selwyn Duke is a writer, columnist and public speaker whose work has been published widely online and in print, on both the local and national levels. He has been featured on the Rush Limbaugh Show and has been a regular guest on the award-winning Michael Savage Show. His work has appeared in Pat Buchanan’s magazine The American Conservative and he writes regularly for The New American and Christian Music Perspective.

He can be reached at: SelwynDuke@optonline.net

Selwyn Duke is a regular columnist for Veracity Voice

Oil Price Blowback

January 10, 2015 by · Leave a Comment 

Is Putin Creating A New World Order?

“If undercharging for energy products occurs deliberately, it also effects those who introduce these limitations. Problems will arise and grow, worsening the situation not only for Russia but also for our partners.”Russian President Vladimir Putin

It’s hard to know which country is going to suffer the most from falling oil prices. Up to now, of course, Russia, Iran and Venezuela have taken the biggest hit, but that will probably change as time goes on. What the Obama administration should be worried about is the second-order effects that will eventually show up in terms of higher unemployment, market volatility, and wobbly bank balance sheets. That’s where the real damage is going to crop up because that’s where red ink and bad loans can metastasize into a full-blown financial crisis. Check out this blurb from Nick Cunningham at Oilprice.com and you’ll see what I mean:

“According to an assessment from the Federal Reserve Bank of Dallas, an estimated 250,000 jobs across eight U.S. states could be lost in 2015 if oil prices don’t rise. More than 50 percent of those job losses would occur in Texas, which leads the nation in oil production.

There are some early signs that a slowdown in drilling could spread to the manufacturing sector in Texas… One executive at a metal manufacturing company said in the survey, “the drop in crude oil prices is going to make things ugly… quickly.” Another company that manufactures machinery told the Dallas Fed, “Low oil prices will drive reductions in U.S. drilling rigs, which will in turn reduce the market for our products.”

The sentiment was similar for a chemical manufacturer, who said “lower oil prices will adversely impact margins. Energy volatility will cause our customers to keep inventories tight.”

States like Texas, North Dakota, Oklahoma, and Louisiana have seen their economies boom over the last few years as oil production surged. But the sector is now deflating, leaving gashes in employment rolls and state budgets.” (Low Prices Lead To Layoffs In The Oil Patch, Nick Cunningham, Oilprice.com)

Of course industries lay-off workers all the time and it doesn’t always lead to a financial crisis. But unemployment is just one part of the picture, lower personal consumption is another. Take a look:

“Falling oil prices are a bigger drag on economic growth than the incremental “savings” received by the consumer…..Another way to show this graphically is to look at the annual changes in Personal Consumption Expenditures (PCE) in aggregate as compared to the subsection of PCE spent on energy and related products. This is shown in the chart below.

Lower Energy Prices To Lower PCE (Personal Consumption Expenditures):

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(The Gasoline Price Myth, Lance Roberts, oilprice.com)

See? So despite what you might have read in the MSM, lower gas prices do not translate into greater personal consumption or more robust growth. Quiet the contrary, they tend to intensify deflationary pressures and reduce activity which is a damper on growth.

Then there’s the knock-on effects that crashing prices and layoffs have on other industries like mining, manufacturing and chemical production. Here’s more from Oil Price:

“Oil and gas production makeup a hefty chunk of the “mining and manufacturing” component of the employment rolls. Since 2000, when the oil price boom gained traction, Texas has comprised more than 40% of all jobs in the country according to first quarter data from the Dallas Federal Reserve…

The majority of the jobs “created” since the financial crisis have been lower wage paying jobs in retail, healthcare and other service sectors of the economy. Conversely, the jobs created within the energy space are some of the highest wage paying opportunities available in engineering, technology, accounting, legal, etc. In fact, each job created in energy related areas has had a “ripple effect” of creating 2.8 jobs elsewhere in the economy from piping to coatings, trucking and transportation, restaurants and retail….

The obvious ramification of the plunge in oil prices is that eventually the loss of revenue will lead to cuts in production, declines in capital expenditure plans (which comprise almost 1/4th of all capex expenditures in the S&P 500), freezes and/or reductions in employment, and declines in revenue and profitability…

Simply put, lower oil and gasoline prices may have a bigger detraction on the economy than the “savings” provided to consumers.” (The Gasoline Price Myth, Lance Roberts, oilprice.com)

None of this sounds very reassuring, does it? And yet, all we hear from the media is how the economy is going to reach “escape velocity” on the back of cheap oil. Nonsense. This is just more “green shoots” baloney wrapped in public relations hype. The fact is, the economy needs the good-paying jobs more than it needs low-priced energy. But now that prices are tumbling, those jobs are going to disappear which is going to be a drag on growth. Now check out these headlines I picked up on Google News that help to show what’s going on off the radar:

“Texas is in danger of a recession”, CNN Money.
“Texas Could Be Headed for an Oil-Fueled Recession, JP Morgan Economist Says”, Wall Street Journal “Good Times From Texas to North Dakota May Turn Bad on Oil-Price Drop”, Bloomberg
“Low Oil Prices in the New Year Are Screwing Petrostates”, Vice News
“Top US Oil States Are Taking A Hit From Plunging Crude Prices”, Business Insider

Get the picture? If oil prices continue to fall, unemployment is going to spike, activity is going to slow, and the economy is going tank. And the damage won’t be limited to the US either. Get a load of this from the UK Telegraph:

“A third of Britain’s listed oil and gas companies are in danger of running out of working capital and even going bankrupt amid a slump in the value of crude, according to new research.

Financial risk management group Company Watch believes that 70pc of the UK’s publicly listed oil exploration and production companies are now unprofitable, racking up significant losses in the region of £1.8bn.

Such is the extent of the financial pressure now bearing down on highly leveraged drillers in the UK that Company Watch estimates that a third of the 126 quoted oil and gas companies on AIM and the London Stock Exchange are generating no revenues.

The findings are the latest warning to hit the oil and gas industry since a slump in the price of crude accelerated in November when the Organisation of Petroleum Exporting Countries (Opec) decided to keep its output levels unchanged. The decision has caused carnage in oil markets with a barrel of Brent crude falling 45pc since June to around $60 per barrel.” (Third of listed UK oil and gas drillers face bankruptcy, Telegraph)

“Carnage in oil markets,” you say?

Indeed. Many of the oil-drilling newcomers set up shop to take advantage of the low rates and easy money available in the bond market. Now that prices have crashed, investors are avoiding energy-related junk bonds like the plague which is making it impossible for the smaller companies to roll over their debt or attract fresh capital. When these companies start to default en masse, as they certainly will if prices don’t rebound, the blowback will be felt on bank balance sheets across the country creating the possibility of another financial meltdown. (Now we ARE talking about a financial crisis.)

The basic problem is that the banks have bundled a lot of their dodgy debt into financially-engineered products like Collateralized Loan Obligations (CLOs) and Collateralized Debt Obligations (CDOs) that will inevitably fail when borrowers are no longer able to service the loans. The rot can be concealed for a while, but eventually, if prices don’t recover, a significant number of these companies are going to go under which will push the perennially-undercapitalized banking system to the brink once again. That’s why Washington’s plan to push down oil prices (to hurt the Russian economy) might have made sense on a short-term basis (to shock Putin into submission) but as a long-term strategy, it’s nuts. And what’s even crazier, is that Obama has decided to double-down on the same wacky plan even though Putin hasn’t given an inch. Check this out from Reuters on Monday:

“The Obama administration has opened a new front in the global battle for oil market share, effectively clearing the way for the shipment of as much as a million barrels per day of ultra-light U.S. crude to the rest of the world…

The Department of Commerce on Tuesday ended a year-long silence on a contentious, four-decade ban on oil exports, saying it had begun approving a backlog of requests to sell processed light oil abroad.

The action comes at a critical juncture for the global oil market. World prices have halved to less than $60 a barrel since the summer as top exporter Saudi Arabia, once a staunch defender of $100 oil, refused to cut production in the face of surging U.S. shale output and tempered global demand…

With global oil markets in flux, it is far from clear how much U.S. condensate will find a market overseas.”
(Analysis – U.S. opening of oil export tap widens battle for global market, Reuters)

Does that make sense to you, dear reader? Why would Obama suddenly opt to change the rules of the game when he knows it will increase supply and push prices down even further? Why would he do that? Certainly, he doesn’t want to inflict more pain on domestic producers, does he?

Let’s let Obama answer the question for himself. Here’s a clip from an NPR interview with the president just last week. About halfway through the interview, NPR’s Steve Inskeep asks Obama: “Are you just lucky that the price of oil went down and therefore their currency collapsed or …is it something that you did?

Barack Obama: If you’ll recall, their (Russia) economy was already contracting and capital was fleeing even before oil collapsed. And part of our rationale in this process was that the only thing keeping that economy afloat was the price of oil. And if, in fact, we were steady in applying sanction pressure, which we have been, that over time it would make the economy of Russia sufficiently vulnerable that if and when there were disruptions with respect to the price of oil — which, inevitably, there are going to be sometime, if not this year then next year or the year after — that they’d have enormous difficulty managing it.” (Transcript: President Obama’s Full NPR Interview)

Am I mistaken or did Obama just admit that he wanted “disruptions” in the “price of oil” because he figured Putin would have “enormous difficulty managing it”?

Isn’t that the same as saying that it was all part of Washington’s plan; that plunging prices were just the icing on the cake for their asymmetrical attack on the Russian economy? It sure sounds like it. And that would also explain why Obama decided to allow domestic producers to dump more oil on the market even though it’s going to send prices lower. Apparently, none of that matters as long as the policy hurts Russia.

So maybe the US-Saudi oil collusion theory isn’t so far fetched after all. Maybe Salon’s Patrick L. Smith was right when he said:

“Less than a week after the Minsk Protocol was signed, Kerry made a little-noted trip to Jeddah to see King Abdullah at his summer residence. When it was reported at all, this was put across as part of Kerry’s campaign to secure Arab support in the fight against the Islamic State.

Stop right there. That is not all there was to the visit, my trustworthy sources tell me. The other half of the visit had to do with Washington’s unabated desire to ruin the Russian economy. To do this, Kerry told the Saudis 1) to raise production and 2) to cut its crude price. Keep in mind these pertinent numbers: The Saudis produce a barrel of oil for less than $30 as break-even in the national budget; the Russians need $105.

Shortly after Kerry’s visit, the Saudis began increasing production, sure enough — by more than 100,000 barrels daily during the rest of September, more apparently to come…

Think about this. Winter is coming, there are serious production outages now in Iraq, Nigeria, Venezuela and Libya, other OPEC members are screaming for relief, and the Saudis make back-to-back moves certain to push falling prices still lower? You do the math, with Kerry’s unreported itinerary in mind, and to help you along I offer this from an extremely well-positioned source in the commodities markets: “There are very big hands pushing oil into global supply now,” this source wrote in an e-mail note the other day.” (“What Really Happened in Beijing: Putin, Obama, Xi And The Back Story The Media Won’t Tell You”, Patrick L. Smith, Salon)

Vladimir Putin: Public Enemy Number 1

Let’s cut to the chase: All these oil shenanigans are really aimed at just one man: Vladimir Putin. There are a number of reasons why Washington wants to get rid of Putin, the first of which is that the Russian president has become an obstacle to US plans to pivot to Asia. That’s the main issue. As long as Putin is calling the shots, there’s going to be growing resistance to NATO’s push eastward and Washington’s military expansion across Central Asia which could undermine US plans to encircle China and remain the world’s only superpower. Here’s an excerpt from Zbigniew Brzezinski’s The Grand Chessboard which helps to explain the importance Eurasia is in terms of Washington’s global ambitions:

“..how America ‘manages’ Eurasia is critical. A power that dominates Eurasia would control two of the world’s three most advanced and economically productive regions. A mere glance at the map also suggests that control over Eurasia would almost automatically entail Africa’s subordination, rendering the Western Hemisphere and Oceania (Australia) geopolitically peripheral to the world’s central continent. About 75 per cent of the world’s people live in Eurasia, and most of the world’s physical wealth is there as well, both in its enterprises and underneath its soil. Eurasia accounts for about three-fourths of the world’s known energy resources.” (p.31) (Zbigniew Brzezinski, The Grand Chessboard: American Primacy And It’s Geostrategic Imperatives, Key Quotes From Zbigniew Brzezinksi’s Seminal Book)

Get it? Prevailing in Asia is the administration’s top priority, which is why the US is rapidly moving its military assets into place. Check this out from the World Socialist Web Site:

“Under Obama’s “pivot to Asia,” the Pacific Command will account for more than 60 percent of all US military forces, up from 50 percent under the Bush administration. This includes new US basing arrangements in the Philippines, Singapore and Australia, as well as renewed close military ties to New Zealand, and ongoing US military exercises in Thailand, Malaysia, Indonesia and Taiwan….(as well as) large troop deployments in Japan and South Korea, including nuclear-armed units.” (The global scale of US militarism, Patrick Martin, World Socialist Web Site)

The “Big Shift” is already underway, which is why obstacles have to be removed and Putin’s got to go.

Second, Putin has made himself a general nuisance vis a vis US strategic objectives in Syria, Iran and Ukraine. In Syria, Putin has thrown his support behind Assad who the US wants to topple in order to redraw the map of the Middle East and build gas pipelines from Qatar to Turkey to access the lucrative EU market.

Third, Putin has strengthened a number of coalitions and alliances –the BRICS bank, the Eurasian Economic Union, and the Shanghai Cooperation Organization–all of which pose a challenge to US dominance in the region as well as a viable alternative to neoliberal financial institutions like the IMF and World Bank. Going back to Brzezinski’s “chessboard” once again, we see that the US should not feel threatened by any one nation, but should be constantly on-the-lookout for “regional coalitions” which could derail its plans to rule the world. Here’s Brzezinski again:

“…the three grand imperatives of imperial geostrategy are to prevent collusion and maintain security dependence among the vassals, to keep tributaries pliant and protected, and to keep the barbarians from coming together.” (p.40)

“Henceforth, the United States may have to determine how to cope with regional coalitions that seek to push America out of Eurasia, thereby threatening America’s status as a global power.” (p.55) (Zbigniew Brzezinski, The Grand Chessboard: American Primacy And It’s Geostrategic Imperatives, Key Quotes From Zbigniew Brzezinksi’s Seminal Book)

As a founding member and primary backer of these organizations, (and initiator of giant energy deals with China, India and Turkey) Putin has become Washington’s biggest headache and a logical target for regime change.

Finally, Putin is doing whatever he can to circumvent dollar-denominated business and financial transactions. The move away from the buck is a direct attack on the US’s greatest source of power, the ability to control the de facto international currency and to require that other nation’s stockpile dollars for their energy purchases which are then recycled into US financial assets, stocks bonds and US Treasuries. This petrodollar-recycling scam allows the US to run gigantic current account deficits without raising interest rates or reducing government spending. Putin’s anti-dollar policies could diminish the greenback’s role as reserve currency and put an end to a system that institutionalizes looting.

This is why Putin is Public Enemy Number 1. It’s because he’s blocking the US pivot to Asia, strengthening anti-Washington coalitions, sabotaging US foreign policy objectives in the Middle East, creating institutions that rival the IMF and World Bank, transacting massive energy deals with critical US allies, increasing membership in an integrated, single-market Eurasian Economic Union, and attacking the structural foundation upon which the entire US empire rests, the dollar.

Naturally, Washington’s powerbrokers are worried about these developments, just as they are worried about the new world order which is gradually taking shape under Putin’s guidance. But, so far, they haven’t been able to do anything about it. The administration’s regime change schemers and fantasists have shown time-and-again that they’re no match for Bad Vlad who has beaten them at every turn.

Bravo, Putin.


Mike Whitney is a regular columnist for Veracity Voice

Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com

Where Will 2015 Take Us?

January 1, 2015 by · Leave a Comment 

Every year about this time, we are inundated with self-proclaimed prognosticators telling us (with great certainty) what the New Year will bring. The vast majority of the time they are wrong; but, somehow, that doesn’t keep people from listening to these pseudo-prophets or from buying their publications and videos. So, let me say upfront: I am not a prophet, nor the son of a prophet. I have no crystal ball; and the Almighty has not privileged me with special revelation regarding future events. However, I can predict with confidence that most of the predictions WON’T come to pass–especially the ones that deal with eschatology.

However, what I can report is the things that are ALREADY happening and the momentum that is driving them. It is an immutable law that, absent a significant force to the contrary, things in motion tend to stay in motion. Therefore, here are a few things that are already in motion as we go into 2015.

*Amnesty For Illegals And Obamacare

Let’s take Obamacare first: It is here to stay. Both major parties in Washington, D.C., overwhelmingly support national health insurance. Had Mitt Romney been elected in 2012, we would be calling it Romneycare instead of Obamacare. In fact, Mitt Romney’s state health insurance plan was the model for what we now call Obamacare. So, if any of you are still harboring any hope that somehow the new GOP Congress will pull a rabbit out of the hat and reverse Obamacare, it’s time to admit reality. Obamacare isn’t going anywhere. Supreme Court Chief Justice John Roberts, who was selected by President G.W. Bush, forever sealed Obamacare into the legal and political bone marrow of America.

And, like Obamacare, both major parties in Washington, D.C., support amnesty for illegals. Oh, I know that the vast majority of grassroots Republicans oppose amnesty, but since when has that mattered to a tinker’s dam to the GOP ruling class? John Boehner and Company has already orchestrated the funding for amnesty with the $1.1 trillion “Cromnibus” bill that recently passed. Another vote that could potentially defund amnesty is expected in Congress by February. But already the GOP leadership is positioning the new Republican majority to provide amnesty with permanent status. The fact that it was mostly anti-amnesty anger that swept Republicans into the majority in both houses of Congress means nothing to the GOP leadership. NOTHING!

Here is the most concise summary I’ve seen to date on what GOP leaders are doing regarding solidifying Obama’s (unconstitutional) amnesty order:

“The plan by GOP leaders to sell out and back up Obama’s executive amnesty is already coming together.

“‘Here’s the architecture of the coming sellout: there will be a show vote on defunding exec amnesty–either as a stand alone or part of the DHS bill,’ a congressional GOP aide told Breitbart News:

“‘But once they’ve let members vote on it, it will fall away. Instead, they’ll attach the McCaul “border securit” bill–what we’ll call free rides for illegal aliens to a city near you. The McCaul bill will follow the Pete Sessions’ rule: no illegal aliens will be deported. No e-verify, no welfare stoppage, a free pass for the 12 million here to stay here. It will just be more money for King Obama to use to help illegals enter the country and get a free education. The White House will play along, pretend it’s a tough bill, and then eagerly sign it–locking in the amnesty and taking real enforcement off the table (they’ll say it’s all done now). Then will come the gifts for the corporate sponsors.’”

The report also quotes George Rasley, the executive editor of Richard Viguerie’s ConservativeHQ, as correctly saying, “Looking at what the Republican Party’s Capitol Hill leaders did in the CRomnibus it’s hard for conservatives to figure out who’s worse: Obama or the GOP leaders who apparently plan to overturn the results of the 2014 midterms by allowing the president’s unconstitutional amnesty to stand and, adding insult to injury, passing the U.S. Chamber of Commerce wishlist of more spending and more visas to displace American workers.”

See the report at:

‘Rain Dance’: GOP Leadership May Be Developing Plan To Solidify Obama’s Executive Amnesty

Folks, please understand that GOP leaders in Congress are not GOING to solidify Obama’s amnesty deal, they are ALREADY solidifying it. Therefore, this is not a prediction; it is simply an accurate reporting of what is already taking place. Republican leaders in Washington, D.C., are going to do what they always do: give grassroots conservative Republicans the royal shaft. But since conservatives seem to suffer from Stockholm Syndrome every election year, it is doubtful that much of anything will change in 2016 either.

*TPP

The newest NAFTA-style trade agreement, called the Trans-Pacific Partnership (TPP), has been in the works for some time. However, with the Democrats in charge of the Senate, President Obama was not able to push the jobs-killing agreement through Congress. But with the GOP now in charge of both houses of Congress, passage of TPP will be a breeze.

As Rasley observed, Republican congressional leaders are mostly in the pocket of the U.S. Chamber of Commerce, and the TPP trade agreement is perhaps priority number one for the Chamber–and they are already pushing hard for its passage.

The Washington Post noted that “President Obama is preparing a major push on a vast free-trade zone that seeks to enlist Republicans as partners.”

See the report here:

Obama Hopes To Enlist GOP In Push For Trade Pact, Despite Democratic Resistance

With the GOP controlling Congress, globalist-minded Barack Obama is now able to bypass his own party and partner with internationalist-business-friendly Republicans to pass TPP. Like amnesty, the TPP trade agreement is ALREADY being positioned for passage within the GOP Congress.

The Chamber of Commerce spent millions in this last election helping to elect pro-Big Business Republicans to office. They expect payback.

A Breitbart.com report begins, “Not only does the U.S. Chamber of Commerce think it is the only reason the GOP won in November, it is now threatening Republicans with opposition next go round if they don’t lay down and give the Chamber precisely what it wants, including on immigration, increased spending on transportation, and economic deals that sweeten the pot for big business.”

See the report here:

US Chamber Of Commerce Threatens GOP On Immigration, Spending

*The American Police State

The American Police State saw a banner year in 2014. The militarization of local and State police, along with the instances of police-bullying, grew to record heights last year–and there is absolutely no sign of a let-up.

Excerpts from Joel Skousen’s December 26, 2014 World Affairs Brief (WAB) are relevant:

“This year we saw government further arrogate to itself broad new power through executive action that went unchecked thanks to a Congress coopted by globalist republican leaders and a neutered Supreme Court, which refuses to declare any of the president’s unilateral actions unconstitutional.”

Skousen continues, “We now live in a surveillance state and its purpose has nothing to do with terrorism: Domestic dissidents are the target; terrorism is just the excuse. The NSA records every type of electronic communication. Despite the initial public outrage over Edward Snowden’s revelation, government hasn’t stopped anything. They’ve made deceptive legislative proposals that claim to limit government’s ability to see content, but those claims are as much a sham and a lie as the government insistence that they only collect metadata. The content comes right along with the metadata, so there’s no way to collect only the metadata.”

Pertaining specifically to domestic police abuse, Skousen notes, “Police aggressiveness and brutality . . . is a precursor to a Police state. It reached a head this year with the Ferguson riots, but sadly the issue was falsely framed as one of racial prejudice and profiling, rather than the danger to all of us from thuggish police behavior. There is a steady increase in the percentage of macho, pushy law enforcement personnel, many of which have a military background. They bring with them their foul-mouthed habits and thuggish behavior. Coupled with police training that talks incessantly about ‘getting killed if you don’t react fast enough’ police are developing a shoot-first-and-ask-question-later mentality.

“Just as bad is their attitude that ‘you need to do what I say, no questions asked.’ This is not right. Police are not allowed by law to demand the public follow their every order. It has to be a lawful order. Sadly, neither the police chiefs nor the courts are willing to sanction police with strong penalties when they abuse this power.”

To subscribe (paid only) to Skousen’s excellent WAB, go here:

Joel Skousen.com

Unfortunately, there are only a precious few who seem to understand this burgeoning Police State and who actively oppose it. A majority of Democrats and Republicans, liberals and conservatives, unbelievers and Christians, all seem to, not only tolerate the police-state mentality, but enthusiastically support it. And there is no momentum whatsoever to stopping it. It will only get worse in 2015.

*Christ And Caesar

True Christianity has never been associated with, supported by, or underneath Caesar’s (civil government’s) auspices or benevolence. For most of the 2,000+ years of Church history, true believers met in non-state-sanctioned or even underground churches and fellowships. In fact, the Early Church was birthed in a baptism of persecution from both the civil government (Rome) and established religion (Judaism) at the time. Not until the unholy union of the Church and State under Theodosius I (almost 400 years after Christ) did Christians accept official sanction from government. And for many centuries to follow, the official merger of Church and state led to the persecutions and deaths of untold thousands of believers deemed heretics and outlaws because their religious beliefs contradicted those of the official state-sanctioned church.

Even in early America, state-approved denominations and churches were guilty of horrific persecutions against independent-minded Christians who refused to submit to the doctrines and liturgies of state-sanctioned churches. These state-church persecutions ultimately led Roger Williams to found the colony of Rhode Island and John Leland to convince James Madison that religious liberty must be the first in our Constitution’s Bill of Rights.

After the acceptance of our Bill of Rights, America’s churches enjoyed complete independent status, being answerable only to their Creator and their own conscience. All of that changed in 1954 when then-Senator Lyndon Johnson (D-Texas) successfully introduced the Johnson Amendment to the code of the Internal Revenue Service: the now-infamous 501c3 nonprofit organization status for churches. This designation made churches a creature of the state–answerable to the direct dictates of government–even regarding speech and activity.

By accepting 501c3 status, America’s churches have effectively become state-licensed or state-sanctioned organizations. In much the same way that churches in Communist China risk vindictive state sanctions for not complying to state control, so, too, churches in the United States risk vindictive IRS sanctions for not complying to state control.

What is more than interesting is the comparison between the churches in China and the churches in America. In China, Christianity is growing exponentially. In fact, there are now more Christians in China than there are communists. Please carefully read this report:

“Though the Chinese Communist Party is the largest explicitly atheist organization in the world, with 85 million official members, it is now overshadowed by an estimated 100 million Christians in China. It is no wonder Beijing is nervous and authorities are cracking down on Christian groups.

“Christianity is growing so fast in China that some predict that it will be the most Christian nation in the world in only another 15 years. By far, the greatest growth is coming outside the official state-sanctioned churches, which are rightly considered subservient to the Communist Party. Numbers are increasing, rather, in unofficial Protestant ‘house churches’ and in the underground Catholic church.”

See the report here:

Christians Now Outnumber Communists In China

Did you get that? Let me repeat it: “By far, the greatest growth is coming OUTSIDE [emphasis added] the official state-sanctioned churches, which are rightly considered subservient to the Communist Party [state]. Numbers are increasing, rather, in UNOFFICIAL [emphasis added] Protestant ‘house churches’ and in the UNDERGROUND [emphasis added] Catholic church.”

But what do we see happening in the United States? Christianity is waning BIG TIME. On the whole, churches are in steep decline. For the most part, only the entertainment-oriented, circus variety churches are growing. The numbers of Americans professing Christianity in general and expressing loyalty to a specific church or denomination are at historic lows. And the trend for 2015 and beyond is more of the same.

So, what is the difference? Why is Christianity proliferating in China and declining in America? China has an openly atheistic government. For all intents and purposes, the government in Washington, D.C., is equally atheistic. The federal government in D.C. is responsible for virtually every single attack against the expression of the Christian faith at every level of society. It is the federal government that attacks Christian expression in our local public schools. It is the federal government that attacks Christian expression in local governing bodies. It is the federal government that has all but permanently dismantled the expression of Christianity throughout our country’s public institutions. But so does the government in Beijing. Yet, in China, the Church is mushrooming, while in America, the Church is dying. What’s the difference?

The difference is, in China, Christians understand that to be loyal to Christ, they MUST NOT SUBMIT to state-sanction or license. And they are willing to defy Beijing authorities in order to be faithful to that conviction. However, in America, pastors and churches insist that they MUST SUBMIT to state control–even using Romans 13 to justify this preposterous position. Bottom line: state-sanctioned churches in America are withering, while non-state-sanctioned churches in China are mushrooming. There is no doubt that the trend in both countries will continue into and beyond 2015.

Until America’s pastors and churches “see the light” and consciously withdraw themselves from Caesar’s grasp (at whatever cost), Christianity in this country will continue to evaporate.

Toward the end of 2014, I launched the Liberty Church Project, in which I am traveling the country helping pastors and churches withdraw from the tentacles of 501c3 government sanction and/or helping people start brand new non-501c3 churches and fellowships. So far, we are batting a perfect five-for-five. And I believe that the momentum of establishing “unofficial” or “underground” churches in this country has only begun.

I am absolutely convinced that very soon every pastor and Christian in America will have to make the conscious decision to either deny Christ and remain part of the apostate government-church or be faithful to Christ and become part of the “unofficial” or “underground” church–just as Christians have had to do in China. One will not be able to do both.

I also believe that what we are seeing happening via the Liberty Church Project is just the beginning raindrops of what will one day be a deluge. I am quite confident that I will be very busy in 2015 as we continue to help believers establish non-501c3 churches and fellowships. To learn more about the Liberty Church Project, go here:

Liberty Church Project

Let me say it plainly: the ONLY way America’s Christians and churches are going to experience a true spiritual renewal is to withdraw themselves from state sanction. For all intents and purposes, the establishment Church in America is DEAD. It has forgotten the lessons of history. It would rather please Caesar; it relishes the endorsement of Caesar. By action, our church leaders are saying the same thing Jewish leaders said at the time of Christ: “We have no king but Caesar.”

So, while I am not a prognosticator or a prophet, I can easily see the trends listed above. There is absolutely no doubt in my mind that these trends will continue into 2015 and beyond.


Chuck Baldwin is a regular columnist for Veracity Voice

You can reach him at: chuck@chuckbaldwinlive.com
Please visit Chuck’s web site at: http://www.chuckbaldwinlive.com

Irreversible Decline?

January 1, 2015 by · Leave a Comment 

Did the U.S. and the Saudis Conspire to Push Down Oil Prices?

“Saudi oil policy… has been subject to a great deal of wild and inaccurate conjecture in recent weeks. We do not seek to politicize oil… For us it’s a question of supply and demand, it’s purely business.” – Ali al Naimi, Saudi Oil Minister

“There is no conspiracy, there is no targeting of anyone. This is a market and it goes up and down.” – Suhail Bin Mohammed al-Mazroui, United Arab Emirates’ petroleum minister

“We all see the lowering of oil prices. There’s lots of talk about what’s causing it. Could it be an agreement between the U.S. and Saudi Arabia to punish Iran and affect the economies of Russia and Venezuela? It could.” – Russian President Vladimir Putin

Are falling oil prices part of a US-Saudi plan to inflict economic damage on Russia, Iran and Venezuela?

Venezuelan President Nicolas Maduro seems to think so. In a recent interview that appeared in Reuters, Maduro said he thought the United States and Saudi Arabia wanted to drive down oil prices “to harm Russia.”

Bolivian President Evo Morales agrees with Maduro and told journalists at RT that: “The reduction in oil prices was provoked by the US as an attack on the economies of Venezuela and Russia. In the face of such economic and political attacks, the nations must be united.”

Iranian President Hassan Rouhani said the same thing,with a slightly different twist: “The main reason for (the oil price plunge) is a political conspiracy by certain countries against the interests of the region and the Islamic world … Iran and people of the region will not forget such … treachery against the interests of the Muslim world.”

US-Saudi “treachery”? Is that what’s really driving down oil prices?

Not according to Saudi Arabia’s Petroleum Minister Ali al-Naimi. Al-Naimi has repeatedly denied claims that the kingdom is involved in a conspiracy. He says the tumbling prices are the result of “A lack of cooperation by non-OPEC production nations, along with the spread of misinformation and speculator’s greed.” In other words, everyone else is to blame except the country that has historically kept prices high by controlling output. That’s a bit of a stretch, don’t you think? Especially since–according to the Financial Times — OPEC’s de facto leader has abandoned the cartel’s “traditional strategy” and announced that it won’t cut production even if prices drop to $20 per barrel.

Why? Why would the Saudis suddenly abandon a strategy that allowed them to rake in twice as much dough as they are today? Don’t they like money anymore?

And why would al-Naimi be so eager to crash prices, send Middle East stock markets into freefall, increase the kingdom’s budget deficits to a record-high 5 percent of GDP, and create widespread financial instability? Is grabbing “market share” really that important or is there something else going on here below the surface?

The Guardian’s Larry Elliot thinks the US and Saudi Arabia are engaged a conspiracy to push down oil prices. He points to a September meeting between John Kerry and Saudi King Abdullah where a deal was made to boost production in order to hurt Iran and Russia. Here’s a clip from the article titled “Stakes are high as US plays the oil card against Iran and Russia”:

“…with the help of its Saudi ally, Washington is trying to drive down the oil price by flooding an already weak market with crude. As the Russians and the Iranians are heavily dependent on oil exports, the assumption is that they will become easier to deal with…

John Kerry, the US secretary of state, allegedly struck a deal with King Abdullah in September under which the Saudis would sell crude at below the prevailing market price. That would help explain why the price has been falling at a time when, given the turmoil in Iraq and Syria caused by Islamic State, it would normally have been rising.

The Saudis did something similar in the mid-1980s. Then, the geopolitical motivation for a move that sent the oil price to below $10 a barrel was to destabilize Saddam Hussein’s regime. This time, according to Middle East specialists, the Saudis want to put pressure on Iran and to force Moscow to weaken its support for the Assad regime in Syria… (Stakes are high as US plays the oil card against Iran and Russia, Guardian)

That’s the gist of Elliot’s theory, but is he right?

Vladimir Putin isn’t so sure. Unlike Morales, Maduro and Rouhani, the Russian president has been reluctant to blame falling prices on US-Saudi collusion. In an article in Itar-Tass, Putin opined:

“There’s a lot of talk around” in what concerns the causes for the slide of oil prices, he said at a major annual news conference. “Some people say there is conspiracy between Saudi Arabia and the US in order to punish Iran or to depress the Russian economy or to exert impact on Venezuela.”

“It might be really so or might be different, or there might be the struggle of traditional producers of crude oil and shale oil,” Putin said. “Given the current situation on the market the production of shale oil and gas has practically reached the level of zero operating costs.” (Putin says oil market price conspiracy between Saudi Arabia and US not ruled out, Itar-Tass)

As always, Putin takes the most moderate position, that is, that Washington and the Saudis may be in cahoots, but that droopy prices might simply be a sign of over-supply and weakening demand. In other words, there could be a plot, but then again, maybe not. Putin is a man who avoids passing judgment without sufficient evidence.

The same can’t be said of the Washington Post. In a recent article, WP journalist Chris Mooney dismisses anyone who thinks oil prices are the result of US-Saudi collaboration as “kooky conspiracy theorists”. According to Mooney:

“The reasons for the sudden (price) swing are not particularly glamorous: They involve factors like supply and demand, oil companies having invested heavily in exploration several years ago to produce a glut of oil that has now hit the market — and then, perhaps, the “lack of cohesion” among the diverse members of OPEC.” (Why there are so many kooky conspiracy theories about oil, Washington Post)

Oddly enough, Mooney disproves his own theory a few paragraphs later in the same piece when he says:

“Oil producers really do coordinate. And then, there’s OPEC, which is widely referred to in the press as a “cartel,” and which states up front that its mission is to “coordinate and unify the petroleum policies” of its 12 member countries…. Again, there’s that veneer of plausibility to the idea of some grand oil related strategy.” (WP)

Let me get this straight: One the one hand Mooney agrees that OPEC is a cartel that “coordinates and unify the petroleum policies”, then on the other, he says that market fundamentals are at work. Can you see the disconnect? Cartels obstruct normal supply-demand dynamics by fixing prices, which Mooney seems to breezily ignore.

Also, he scoffs at the idea of “some grand oil related strategy” as if these cartel nations were philanthropic organizations operating in the service of humanity. Right. Someone needs to clue Mooney in on the fact that OPEC is not the Peace Corps. They are monopolizing amalgam of cutthroat extortionists whose only interest is maximizing profits while increasing their own political power. Surely, we can all agree on that fact.

What’s really wrong with Mooney’s article, is that he misses the point entirely. The debate is NOT between so-called “conspiracy theorists” and those who think market forces alone explain the falling prices. It’s between the people who think that the Saudis decision to flood the market is driven by politics rather than a desire to grab “market share.” That’s where people disagree. No denies that there’s manipulation; they merely disagree about the motive. This glaring fact seems to escape Mooney who is on a mission to discredit conspiracy theorists at all cost. Here’s more:

(There’s) “a long tradition of conspiracy theorists who have surmised that the world’s great oil powers — whether countries or mega-corporations — are secretly pulling strings to shape world events.”…

“A lot of conspiracy theories take as their premise that there’s a small group of people who are plotting to control something, to control the government, the banking system, or the main energy source, and they are doing this to the disadvantage of everybody else,” says University of California-Davis historian Kathy Olmsted, author of “Real Enemies: Conspiracy Theories and American Democracy, World War I to 9/11″. (Washington Post)

Got that? Now find me one person who doesn’t think the world is run by a small group of rich, powerful people who operate in their own best interests? Here’s more from the same article:

(Oil) “It’s the perfect lever for shifting world events. If you were a mad secret society with world-dominating aspirations and lots of power, how would you tweak the world to create cascading outcomes that could topple governments and enrich some at the expense of others? It’s hard to see a better lever than the price of oil, given its integral role in the world economy.” (WP)

“A mad secret society”? Has Mooney noticed that — in the last decade and a half — the US has only invaded nations that have huge natural resources (mainly oil and natural gas) or the geography for critical pipeline routes? There’s nothing particularly secret about it, is there?

The United States is not a “mad secret society with world-dominating aspirations”. It’s a empire with blatantly obvious “world-dominating aspirations” run by political puppets who do the work of wealthy elites and corporations. Any sentient being who’s bright enough to browse the daily headlines can figure that one out.

Mooney’s grand finale:

“So in sum, with a surprising and dramatic event like this year’s oil price decline, it would be shocking if it did not generate conspiracy theories. Humans believe them all too easily. And they’re a lot more colorful than a more technical (and accurate) story about supply and demand.” (WP)

Ah, yes. Now I see. Those darn “humans”. They’re so weak-minded they’ll believe anything you tell them, which is why they need someone as smart as Mooney tell them how the world really works.

Have you ever read such nonsense in your life? On top of that, he gets the whole story wrong. This isn’t about market fundamentals. It’s about manipulation. Are the Saudis manipulating supply to grab market share or for political reasons? THAT’S THE QUESTION. The fact that they ARE manipulating supply is not challenged by anyone including the uber-conservative Financial Times that deliberately pointed out that the Saudis had abandoned their traditional role of cutting supply to support prices. That’s what a “swing state” does; it manipulates supply keep prices higher than they would be if market forces were allowed to operate unimpeded.

So what is the motive driving the policy; that’s what we want to know?

Certainly there’s a strong case to be made for market share. No one denies that. If the Saudis keep prices at rock bottom for a prolonged period of time, then a high percentage of the producers (that can’t survive at prices below $70 per barrel) will default leaving OPEC with greater market share and more control over pricing.

So market share is certainly a factor. But is it the only factor?

Is it so far fetched to think that the United States–which in the last year has imposed harsh economic sanctions on Russia, made every effort to sabotage the South Stream pipeline, and toppled the government in Kiev so it could control the flow of Russian gas to countries in the EU–would coerce the Saudis into flooding the market with oil in order to decimate the Russian economy, savage the ruble, and create favorable conditions for regime change in Moscow? Is that so hard to believe?

Apparently New York Times columnist Thomas Freidman doesn’t think so. Here’s how he summed it up in a piece last month: “Is it just my imagination or is there a global oil war underway pitting the United States and Saudi Arabia on one side against Russia and Iran on the other?”

It sounds like Freidman has joined the conspiracy throng, doesn’t it? And he’s not alone either. This is from Alex Lantier at the World Socialist Web Site:

“While there are a host of global economic factors underlying the fall in oil prices, it is unquestionable that a major role in the commodity’s staggering plunge is Washington’s collaboration with OPEC and the Saudi monarchs in Riyadh to boost production and increase the glut on world oil markets.

As Obama traveled to Saudi Arabia after the outbreak of the Ukraine crisis last March, the Guardian wrote, “Angered by the Soviet invasion of Afghanistan in 1979, the Saudis turned on the oil taps, driving down the global price of crude until it reached $20 a barrel (in today’s prices) in the mid-1980s… [Today] the Saudis might be up for such a move—which would also boost global growth—in order to punish Putin over his support for the Assad regime in Syria. Has Washington floated this idea with Riyadh? It would be a surprise if it hasn’t.” (Alex Lantier,Imperialism and the ruble crisis, World Socialist Web Site)

And here’s an intriguing clip from an article at Reuters that suggests the Obama administration is behind the present Saudi policy:

“U.S. Secretary of State John Kerry sidestepped the issue (of a US-Saudi plot) after a trip to Saudi Arabia in September. Asked if past discussions with Riyadh had touched on Russia’s need for oil above $100 to balance its budget, he smiled and said: “They (Saudis) are very, very well aware of their ability to have an impact on global oil prices.” (Saudi oil policy uncertainty unleashes the conspiracy theorists, Reuters)

Wink, wink.

Of course, they’re in bed together. Saudi Arabia is a US client. It’s not autonomous or sovereign in any meaningful way. It’s a US protectorate, a satellite, a colony. They do what they’re told. Period. True, the relationship is complex, but let’s not be ridiculous. The Saudis are not calling the shots. The idea is absurd. Do you really think that Washington would let Riyadh fiddle prices in a way that destroyed critical US domestic energy industries, ravaged the junk bond market, and generated widespread financial instability without uttering a peep of protest on the matter?

Dream on! If the US was unhappy with the Saudis, we’d all know about it in short-order because it would be raining Daisy Cutters from the Persian Gulf to the Red Sea, which is the way that Washington normally expresses its displeasure on such matters. The fact that Obama has not even alluded to the shocking plunge in prices just proves that the policy coincides with Washington’s broader geopolitical strategy.

And let’s not forget that the Saudis have used oil as a political weapon before, many times before. Indeed, wreaking havoc is nothing new for our good buddies the Saudis. Check this out from Oil Price website:

“In 1973, Egyptian President Anwar Sadat convinced Saudi King Faisal to cut production and raise prices, then to go as far as embargoing oil exports, all with the goal of punishing the United States for supporting Israel against the Arab states. It worked. The “oil price shock” quadrupled prices.

It happened again in 1986, when Saudi Arabia-led OPEC allowed prices to drop precipitously, and then in 1990, when the Saudis sent prices plummeting as a way of taking out Russia, which was seen as a threat to their oil supremacy. In 1998, they succeeded. When the oil price was halved from $25 to $12, Russia defaulted on its debt.

The Saudis and other OPEC members have, of course, used the oil price for the obverse effect, that is, suppressing production to keep prices artificially high and member states swimming in “petrodollars”. In 2008, oil peaked at $147 a barrel.” (Did The Saudis And The US Collude In Dropping Oil Prices?, Oil Price)

1973, 1986, 1990, 1998 and 2008.

So, according to the author, the Saudis have manipulated oil prices at least five times in the past to achieve their foreign policy objectives. But, if that’s the case, then why does the media ridicule people who think the Saudis might be engaged in a similar strategy today?

Could it be that the media is trying to shape public opinion on the issue and, by doing so, actually contribute to the plunge in oil prices?

Bingo. Alert readers have probably noticed that the oil story has been splashed across the headlines for weeks even though the basic facts have not changed in the least. It’s all a rehash of the same tedious story reprinted over and over again. But, why? Why does the public need to have the same “Saudis refuse to cut production” story driven into their consciousness day after day like they’re part of some great collective brainwashing experiment? Could it be that every time the message is repeated, oil sells off, and prices go down? Is that it?

Precisely. For example, last week a refinery was attacked in Libya which pushed oil prices up almost immediately. Just hours later, however, another “Saudis refuse to cut production” story conveniently popped up in all the major US media which pushed prices in the direction the USG wants them to go, er, I mean, back down again.

This is how the media helps to reinforce government policy, by crafting a message that helps to push down prices and, thus, hurt “evil” Putin. (This is called “jawboning”) Keep in mind, that OPEC doesn’t meet again until June, 2015, so there’s nothing new to report on production levels. But that doesn’t mean we’re not going to get regular updates on the “Saudis refuse to cut production” story. Oh, no. The media is going to keep beating that drum until Putin cries “Uncle” and submits to US directives. Either that, or the bond market is going to blow up and take the whole damn global financial system along with it. One way or another, something’s got to give.

Bottom line: Falling oil prices and the plunging ruble are not some kind of free market accident brought on by oversupply and weak demand. That’s baloney. They’re part of a broader geopolitical strategy to strangle the Russian economy, topple Putin, and establish US hegemony across the Asian landmass. It’s all part of Washington’s plan to maintain its top-spot as the world’s only superpower even though its economy is in irreversible decline.


Mike Whitney is a regular columnist for Veracity Voice

Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com

Are You Mad Yet?

December 21, 2014 by · 4 Comments 

In the poem, “The Masque of Pandora,” Henry Wadsworth Longfellow has Prometheus saying, “Whom the gods would destroy, they first make mad.” Accordingly, the would-be gods in the GOP leadership in Washington, D.C., must have rank-and-file Republicans slated for destruction, because they are MAD–and for good reason.

In an open letter, long-time Republican activist, Mike Scruggs, wrote, “I have been a Republican County Chairman in both North Carolina and Alabama. I have served countless hard-working hours as a volunteer for Republican candidates.  I am therefore deeply grieved that the Republican Party leadership in both the U.S. House of Representatives and the U.S. Senate has seen fit to betray the principles and values of a substantial majority of Republican voters, and the majority of the American people. This last week witnessed both the House and Senate passing budget bills that essentially gave Obama’s unlawful amnesty for five million illegal immigrant workers an effective pass.

“The majorities that passed this essentially special interest budget may not be bothered by conscience, but American workers and taxpayers will suffer, lawlessness will abound, and public safety and national security undermined.  Our liberty and freedoms are being traded for gold in the form of huge special interest political campaign donations.

“What kind of party leadership do we have, when they refuse to defend the Constitution, and thus allow President Obama to get away with an unlawful amnesty for at least five million illegal immigrant workers?  

What kind of party leadership do we have, when they ignore the pain of over 18 million Americans who want a full time job and cannot find one? Yet GOP leaders continue to favor big business special interests that profit by flooding the labor market with foreign cheap labor, both legal and illegal. The wages of American workers have been stagnant for nearly 15 years, held down by an excess supply of foreign labor. The GOP leadership message to American workers is that the Republican Party is not concerned with them. Their message to grassroots conservatives is the same. The users of cheap foreign labor profit $437 billion a year, mostly at the expense of American workers–$402 billion annually, nearly $2,800 per year each for 147 million workers.

“According to the Heritage Foundation, the average unlawful immigrant household receives $14,387 more in government services and benefits paid than taxes paid. This will almost double with amnesty, because of more benefits. This is essentially a taxpayer subsidy to businesses using illegal immigrant labor. How long will we put up with this outrage for the benefit of big political donors. What kind of GOP leadership wants more of these injustices to American workers and taxpayers?

“Speaker of the House John Boehner did not give a pass to Obama’s amnesty and plans to double legal immigrant workers because he feared being blamed for a government shutdown. He wants amnesty so that establishment Republicans can continue to receive huge donations from the U.S. Chamber of Commerce and other cheap labor lobbying associations.”

Hear! Hear, Mike!

In addition, the Tea Party Patriots released a summary of the “Cromnibus” Bill just passed. It states:

{{*The bill fully funds President Obama’s illegal executive amnesty;

*The bill contains $1.1 trillion dollars in spending;

*The bill gives every federal employee a raise. That means that even the IRS employees who colluded to target tea party conservatives will receive a raise;

*The bill contains numerous crony deals, built-in bailouts, and payoffs to Wall Street, and large corporations;

*The bill continues to fund Obamacare.

|Tea Party Patriots Press Release

}}

Just as I predicted in this column, the Republican Party in Washington, D.C., has not only done NOTHING to stop Obamacare and Amnesty, it has SOLIDIFIED both into law via legislative action.

In the House of Representatives, only seventeen Republican congressmen were needed to keep the bill from going to the floor for a vote. Guess how many voted “Nay”? SIXTEEN! Had only one more Republican voted “Nay”, the bill would have been dead.

Here is the list of your sixteen Republican heroes who voted “Nay,” in the U.S. House:

Reps. Justin Amash (Mich.), Michele Bachmann (Minn.), Dave Brat (Va.), Mo Brooks (Ala.), Paul Broun (Ga.), Louie Gohmert (Texas), Paul Gosar (Ariz.), Tim Huelskamp (Kan.), Walter Jones (N.C.), Jim Jordan (Ohio), Steve King (Iowa), Raúl Labrador (Idaho), Thomas Massie (Ky.), Bill Posey (Fla.), Matt Salmon (Ariz.) and Steve Stockman (Texas).

See The Hill report here:

High Drama As $1.1T Spending Package Advances By One Vote

No, my fellow Montanans, our illustrious “conservative” House member (and now U.S. Senator-elect), Steve Daines, is not on the list. He voted “Yea” to bring the bill to the floor for a vote and then voted “Nay” on final passage. Typical political flip-flopping to pass big-government spending bills while claiming to oppose them. GAG!

Had Steve Daines voted “Nay” on the first vote, the bill would have never made it to final passage. The excuse he (and the rest of the Republican congressmen who voted for the bill) will use is that they didn’t want to risk a government “shutdown.” Horse Manure! Everyone on the planet knew this bill would fund Obamacare and Amnesty. House leaders could have taken the funding for Obamacare, and especially Amnesty, out of the bill before bringing it to members for a vote had they wanted to. But the truth is, John Boehner and the rest of the GOP leadership want Amnesty as much as Barack Obama and Harry Reid do. And congressmen like Steve Daines want to stay in the good graces of establishment leaders AND their conservative constituents back home. Hence, he played the Potomac Shuffle and voted FOR the bill when his vote could have killed it, then voted AGAINST the bill when he knew his “Nay” vote meant nothing.

No matter what you hear, folks, the ONLY Republican House members who truly voted AGAINST the Obamacare/Amnesty funding bill are the sixteen champions listed above.

ARE YOU MAD YET?

When will the U.S. electorate awaken to the fact that we do not have two parties in Washington, D.C.? And when will conservative Republicans awaken to the fact that their party in D.C. does NOT represent them–and has no intentions of representing them?

At the leadership level, both Democrats and Republicans represent big-money, globalist agendas. Neither party cares a hoot in hades about their constituents–much less liberty and constitutional government.

The toll that amnesty is going to take upon this republic will be horrific. No, more than that, it will forever change the future of our country. And it won’t take long.

Yes, I’m talking about the financial burden that will be placed on the backs of taxpayers at every level of government. I’m talking about escalating crime rates. I’m talking about federally-mandated expulsion of America’s historic Christian culture. I’m talking about rising unemployment for American citizens–especially African Americans. I’m talking about an exponential growth in the numbers of people who are increasingly dependent upon the government for subsistence. In fact, all of the above is ALREADY taking place at a rapid rate.

That African Americans will be among the hardest hit by the invasion of illegals is the dirty little secret that Democrat Party leaders are NOT telling their constituents. As the percentage of Hispanics mushrooms–due to Washington, D.C.’s amnesty provisions–the percentage of African Americans will shrink just as fast. Most experts agree that by 2040, Hispanics will be the majority race in this country. Thanks to the legalization of illegal immigration facilitated by both Democrats and Republicans in D.C., this is now inevitable. It may happen sooner.

But there is one more toll that the acceptance of illegal immigration will exact on this country: the breakup of the Continental United States. This is the toll hardly anyone wants to think about, much less talk about. But, it, too, is inevitable.

Virtually everyone south of the border (and in most American university classrooms) believes that the southwestern United States rightfully belongs to Mexico. Accordingly, the animosity and hatred against America runs very, very deep. If anyone truly believes that the influx of untold millions of Hispanics will NOT eventually lead to attempted secession, they are living in a dream world.

Can one imagine what will happen in the border states of California, Arizona, New Mexico, and Texas, when the Hispanic population outnumbers all others by significant percentages? For that matter, all of the southern states, including states as far north as Tennessee, are going to be in the crosshairs of La Raza-type “Reconquista.” For example, the State of Tennessee already is one of the southern states that is a favorite landing place for illegals. Just imagine how amnesty will affect states such as Tennessee, Louisiana, Alabama, and Florida?

Count on it: “The-Southern-United-States-Belongs-To-Us” crowd will demand and implement some sort of secession as quickly as possible. I have been saying for years that some sort of secession within the United States is inevitable.  The far-left hate group, the SPLC, and other big-government control freaks, love to claim that it is “right-wing Christian extremists” who are the ones pushing for secession. But, in the end, it will doubtless be the third-world recipients of U.S. amnesty that will be the catalyst.

One does not have to think real far off to imagine what would happen to the rest of the Continental United States should an Hispanic secession movement take shape in earnest. According to recent surveys, nearly one-fourth of the U.S. citizenry already think favorably of secession.

See this report:

Poll: Nearly 1 In 4 Americans Would Favor Secession

And this report summarizes secession sentiments by regions:

These Are The Regions Where Americans Are Most Likely To Favor Secession

In any kind of breakup, big-government toadies in Washington, D.C., (from BOTH major parties) would doubtless attempt to suspend the Constitution and Bill of Rights (especially the Second Amendment) in much the same way Abraham Lincoln did during the War Between the States. And, for the life of me, I cannot imagine the Rocky Mountain States (for one region) submitting to such tyranny. Let your own imagination run wild from there.

Do Big-Government toadies such as John Boehner and Harry Reid envision a Hispanic secession movement as the result of amnesty? Probably not. I doubt seriously they have that much foresight. Reid and his fellow Democrats are thinking about votes, while Boehner and his fellow Chamber of Commerce Republicans are thinking about cheap labor. And, of course, all of them are thinking about pleasing their big-money masters. However, that blanket amnesty will eventually lead to a Hispanic secession movement is inevitable. Mark my words: it is inevitable. Whether those of us over fifty live to see it is irrelevant; it is inevitable.

Remember the words of Prometheus, “Whom the gods would destroy, they first make mad.” ARE YOU MAD YET?

Instead of waiting for an ugly Hispanic-driven secession movement, liberty-lovers within the GOP should get mad enough NOW and secede from the Republican Party, and join the millions of independents who got mad and left years ago. Even GOP-apologist Mark Levin said recently he is “inches” away from leaving the GOP.

The two-party duopoly is strangling the life and liberty out of America. If this latest betrayal by Republicans is not enough to make freedom-loving Americans realize that the “gods” in D.C., are targeting them for destruction, I doubt anything will.

SO, ARE YOU MAD YET?


Chuck Baldwin is a regular columnist for Veracity Voice

You can reach him at: chuck@chuckbaldwinlive.com
Please visit Chuck’s web site at: http://www.chuckbaldwinlive.com

Ruble Takedown Exposes Cracks In Putin’s Defense

December 20, 2014 by · Leave a Comment 

Putin’s Next Move Is Crucial…

The plunge of the Russian currency this week is the drastic outcome of policies implemented by the major imperialist powers to force Russia to submit to American and European imperialism’s neo-colonial restructuring of Eurasia. Punishing the Putin regime’s interference with their plans for regime change in countries such as Ukraine and Syria, the NATO powers are financially strangling Russia.” Alex Lantier, Imperialism and the ruble crisis, WSWS

“The struggle for world domination has assumed titanic proportions. The phases of this struggle are played out upon the bones of the weak and backward nations.” Leon Trotsky, 1929

Russian President Vladimir Putin suffered a stunning defeat on Tuesday when a US-backed plan to push down oil prices sent the ruble into freefall. Russia’s currency plunged 10 percent on Monday followed by an 11 percent drop on Tuesday reducing the ruble’s value by more than half in less than a year. The jarring slide was assisted by western sympathizers at Russia’s Central Bank who, earlier in the day, boosted interest rates from 10.5 percent to 17 percent to slow the decline. But the higher rates only intensified the outflow of capital which put the ruble into a tailspin forcing international banks to remove pricing and liquidity from the currency leading to the suspension of trade. According to Russia Today:

“Russian Federation Council Chair Valentina Matviyenko has ordered a vote on a parliamentary investigation into the recent activities of the Central Bank and its alleged role in the worst-ever plunge of the ruble rate…

“I suggest to start a parliamentary investigation into activities of the Central Bank that has allowed violations of the citizens’ Constitutional rights, including the right for property,” the RIA Novosti quoted Tarlo as saying on Wednesday.

The senator added that according to the law, protecting financial stability in the country is the main task of the Central Bank and its senior management. However, the bank’s actions, in particular the recent raising of the key interest rate to 17 percent, have so far yielded the opposite results.” (Upper House plans probe into Central Bank role in ruble crash, RT)

The prospect that there may be collaborators and fifth columnists at Russia’s Central Bank should surprise no one. The RCB is an independent organization that serves the interests of global capital and regional oligarchs the same as central banks everywhere. This is a group that believes that humanity’s greatest achievement is the free flow of privately-owned capital to markets around the world where it can extract maximum value off the sweat of working people. Why would Russia be any different in that regard?

It isn’t. The actions of the Central Bank have cost the Russian people dearly, and yet, even now the main concern of RCB elites is their own survival and the preservation of the banking system. An article that appeared at Zero Hedge on Wednesday illustrates this point. After ruble trading was suspended, the RCB released a document with “7 new measures” all of which were aimed at protecting the banking system via moratoria on securities losses, breaks on interest rates, additional liquidity provisioning, easier credit and accounting standards, and this gem at the end:

“In order to maintain the stability of the banking sector in the face of increased interest rate and credit risks of a slowdown of the Russian economy the Bank of Russia and the Government of the Russian Federation prepare measures to recapitalize credit institutions in 2015.” (Russian Central Bank Releases 7 Measures It Will Take To Stabilize The Financial Sector, Zero Hedge)

Sound familiar? It should. You see, the Russian Central Bank works a lot like the Fed. At the first sign of trouble they build a nice, big rowboat for themselves and their dodgy bank buddies and leave everyone else to drown. That’s what these bullet points are all about. Save the banks, and to hell the people who suffer from their exploitative policies.

Here’s more from RT:

“Earlier this week a group of State Duma MPs from the Communist Party sent an official address to Putin asking him to sack (Central Bank head, Elvira) Nabiullina, and all senior managers of the Central Bank as their current policies are causing the rapid devaluation of ruble and impoverishment of the majority of the Russian population.

In their letter, the Communists also recalled Putin’s address to the Federal Assembly in which he said that control over inflation must not be in the way of the steady economic growth.

“They listen to your orders and then do the opposite,” the lawmakers complained.” (RT)

In other words, the RCB enforces its own “austerity” policy in Russia just as central bankers do everywhere. There’s nothing conspiratorial about this. CBs are owned and controlled by the big money guys which is why their policies invariably serve the interests of the rich. They might not call it “trickle down” or “structural adjustment” (as they do in the US), but it amounts to the same thing, the inexorable shifting of wealth from working class people to the parasitic plutocrats who control the system and its political agents. Same old, same old.

Even so, the media has pinned the blame for Tuesday’s ruble fiasco on Putin who, of course, has nothing to do with monetary policy. That said, the ruble rout helps to draw attention to the fact that Moscow is clearly losing its war with the US and needs to radically adjust its approach if it hopes to succeed. First of all, Putin might be a great chess player, but he’s got a lot to learn about finance. He also needs a crash-course in asymmetrical warfare if he wants to defend the country from more of Washington’s stealth attacks.

In the last 10 months, the United States has executed a near-perfect takedown of the Russian economy. Following a sloppy State Department-backed coup in Kiev, Washington has consolidated its power in the Capital, removed dissident elements in the government, deployed the CIA to oversee operations, launched a number of attacks on rebel forces in the east, transferred ownership of Ukraine’s vital pipeline system to US puppets and foreign corporations, created a tollbooth separating Moscow from the lucrative EU market, foiled a Russian plan to build an alternate pipeline to southern Europe (South Stream), built up its military assets in the Balkans and Black Sea and, finally–the cherry on the cake–initiated a daring sneak attack on Russia’s currency by employing its Saudi-proxy to flood the market with oil, push prices off a cliff, and trigger a run on the ruble which slashed its value by more than half forcing retail currency platforms to stop trading the battered ruble until prices stabilized.

Like we said, Putin might be a great chess player, but in his battle with the US, he’s getting his clock cleaned. So far, he’s been no match for the maniacal focus and relentless savagery of the Washington powerbrokers. Yes, he’s formed critical alliances across Asia and the world. He’s also created competing institutions (like the BRICS bank) that could break the imperial grip on global finance. And, he’s also expounded a vision of a new world in which “one center of power” does not dictate the rules to everyone else. That’s all great, but he’s losing the war, and that’s what counts. Washington doesn’t care about peoples’ dreams or aspirations. What they care about is ruling the world with an iron fist, which is precisely what they intend to do for the next century or so unless someone stops them. Putin’s actions, however admirable, have not yet changed that basic dynamic. In fact, this latest debacle (authored by the RCB) is a severe setback for the country and could impact Russia’s ability to defend itself against US-NATO aggression.

So what does Putin need to do to reverse the current trend?

The first order of business should be a fundamental change in approach followed by a quick switch from defense to offense. There should be no doubt by now, that Washington is going for the jugular. The attack on the ruble provides clear evidence that the US will not be satisfied until Russia has been decimated and reduced to “a permanent state of colonial dependency.” (Chomsky) The United States has launched a full-blown economic war on Russia and yet the Kremlin is still acting like Washington’s punching bag. You can’t win a war like that. You have to take the initiative; take chances, be bold, think outside the box. That’s what Washington is doing. The rout of the ruble is perhaps the most astonishingly-successful asymmetrical attack in recent memory. It involved tremendous risks and costs on the part of the perpetrators. For example, the lower oil prices have ravaged important domestic industries, created widespread financial instability, and sent markets across the planet into a nosedive. Even so, Washington persevered with its audacious strategy, undeterred by the vast collateral damage, never losing sight of its ultimate objective; to deprive Moscow of crucial oil revenues, to crash the ruble, and to open up Central Asia for imperial expansion and US military bases. (The pivot to Asia)

This is how the US plays the game, by keeping its “eyes on the prize” at all times, and by rolling roughshod over anyone or anything that gets in its way. That is why the US is the world’s only superpower, because the voracious oligarchs who run the country will stop at nothing to get what they want.

Does Putin have the grit to match that kind of venomous determination? Has he even adjusted to the fact that WW3 will be unlike any conflict in the past, that jihadi-proxies and Neo Nazi-proxies will be employed as shock troops for the empire clearing the way for US special forces and foot soldiers who will hold ground and establish the new order? Does he even realize that Barbarossa 2 is already underway, but that the Panzer divisions and 2 million German regulars have been replaced with high-powered computers, covert ops, color-coded revolutions, currency crises, capital flight, cyber attacks and relentless propaganda. That’s 4th Generation (4-G) warfare in a nutshell. And, guess what? The US attack on the ruble has shown that it is the undisputed master of this new kind of warfare. More important, Washington has just prevailed in a battle that could prove to be a critical turning point if Putin doesn’t get his act together and retaliate.

Retaliate?!?

You mean nukes?

Heck no. But, by the same token, you can’t expect to win a confrontation with the US by rerouting gas pipelines to Turkey or by forming stronger coalitions with other BRICS countries or by ditching the dollar. Because none of that stuff makes a damn bit of difference when your currency is in the toilet and the US is making every effort to grind your face into the pavement.

Capisce?

There’s an expression is football that goes something like this: The best defense is a good offense. You can’t win by sitting on the sidelines and hoping your team doesn’t lose. You must engage your adversary at every opportunity never giving ground without a fight. And when an opening appears where you can take the advantage, you must act promptly and decisively never looking back and never checking your motives. That’s how you win.

Washington only thinks in terms winning. It expects to win, and will do whatever is necessary to win. In fact, the whole system has been re-geared for one, sole purpose; to beat the holy hell out of anyone who gets out of line. That’s what we do, and we’ve gotten pretty good at it. So, if you want to compete at that level, you’ve got to have “game”. You’re going to have to step up and prove that you can run with the big kids.

And that’s what makes Putin’s next move so important, crucial really. Because whatever he does will send a message to Washington that he’s either up to the challenge or he’s not. Which is why he needs to come out swinging and do something completely unexpected. The element of surprise, that’s the ticket. And we’re not talking about military action either. That just plays to Uncle Sam’s strong hand. Putin doesn’t need another Vietnam. He needs a coherent gameplan. He needs a winning strategy. He needs to takes risks, put it all on the line and roll the freaking dice. You can’t lock horns with the US and play it safe. That’s a losing strategy. This is smash-mouth, steelcage smackdown, a scorched-earth event where winner takes all. You have to be ready to rumble.

Putin needs to think asymmetrically. What would Obama do if he was in Putin’s shoes?

You know what he’d do: He’d send military support to Assad. He’d arm rebel factions in Saudi Arabia, Somalia, Nigeria and elsewhere. He’d strengthen ties with Venezuela, Bolivia, Ecuador providing them with military, intelligence and logistical support. He’d deploy his NGOs and Think Tank cronies to foment revolution wherever leaders refused to follow Moscow’s directives. He would work tirelessly to build the economic, political, media, and military institutions he needed to impose his own self-serving version of snatch-and-grab capitalism on every nation on every continent in the world. That’s what Obama would do, because that’s what his puppetmasters would demand of him.

But Putin must be more discreet, because his resources are more limited. But he still has options, like the markets, for example. Let’s say Putin announces that creditors in the EU (particularly banks) won’t be paid until the ruble recovers. How does that sound?

Putin: “We’re really sorry about the inconvenience, but we won’t be able to make those onerous principle payments for a while. Please accept our humble apologies.” End of statement.

Moments later: Global stocks plunge 350 points on the prospect of a Russian default and its impact on the woefully-undercapitalized EU banking system.

Get the picture? That’s what you call an asymmetrical attack. The idea was even hinted at in a piece on Bloomberg News. Here’s an excerpt from the article:

“Sergei Markov, a pro-Putin academic, wrote in a column on Vzglyad.ru. “Since the reasons for the ruble’s fall are political, the response should be political, too. For example, a law that would ban Russian companies from repaying debts to Western counterparties if the ruble has dropped more than 50 percent in the last year. That will immediately lower the pressure on the ruble, many countries have done this, Malaysia is one example. It’s in great economic shape now.” (Is Russia ready to impose capital controls? Chicago Tribune)

Here’s more background from RT:

“Major banks across Europe, as well as the UK, US, and Japan, are at major risk should the Russian economy default, according to a new study by Capital Economics. The ING Group in the Netherlands, Raiffeisen Bank in Austria, Societe General in France, UniCredit in Italy, and Commerzbank in Germany, have all faced significant losses in the wake of the ruble crisis…

Overall Societe General, known as Rosbank in the Russian market, has the most exposure at US$31 billion, or €25 billion, according to Citigroup Inc. analysts. This is equivalent to 62 percent of the Paris-based bank’s tangible equity, Bloomberg News reported.

Following the drop, Raiffeisen, which has €15 billion at risk in Russia, saw its stocks plummeted more than 10 percent. Raiffeisen also has significant exposure in Ukraine, which is facing a similar currency sell-off as Russia.” (Russia crisis leaves banks around the world exposed by the billions, RT)

So Putin defaults which nudges the EU banking system down the stairwell. So what? What does that prove?

It proves that Russia has the tools to defend itself. It proves that Putin can disrupt the status quo and spread the pain a bit more equitably. “Spreading the pain” is a tool the US uses quite frequently in its dealings with other countries. Maybe Putin should take a bite of that same apple, eh?

Another option would be to implement capital controls to avoid ruble-dollar conversion and further capital flight. The beauty of capital controls is that they take power away from the big money guys who run the world and hand it back to elected officials. Leaders like Putin are then in a position to say, “Hey, we’re going to take a little break from the dollar system for while until we get caught up. I hope you’ll understand our situation.”

Capital controls are an extremely effective of avoiding capital flight and minimizing the impact of a currency crisis. Here’s a short summary of how these measures helped Malaysia muddle through in 1998:

“When the Asian financial crisis hit, Malaysia’s position looked a lot like Russia’s today: It had big foreign reserves and a low short-term debt level, but relatively high general indebtedness if households and corporations were factored in. At first, to bolster the ringgit, Deputy Prime Minister Anwar Ibrahim pushed through a market-based policy with a flexible exchange rate, rising interest rates and cuts in government spending. It didn’t work: Consumption and investment went down, and pessimism prevailed, exerting downward pressure on the exchange rate.

So, in June 1998, Prime Minister Mahathir Mohammad… appointed a different economic point man, Daim Zainuddin. In September, on Daim’s urging, Malaysia introduced capital controls. It banned offshore operations in ringgit and forbade foreign investors to repatriate profits for a year. Analysts at the time were sharply critical of the measures, and Malaysia’s reputation in the global financial markets inevitably suffered.

According to Kaplan and Rodrik, however, the capital controls were ultimately effective. The government was able to lower interest rates, the economy recovered, the controls were relaxed ahead of time, and by May 1999 Malaysia was back on the international capital markets with a $1 billion bond issue.” (Is Russia ready to impose capital controls, Chicago Tribune)

Sure they were effective, but they piss off the slacker class of oligarchs who think the whole system should be centered on their “inalienable right” to move capital from one spot to another so they can rake-off hefty profits at everyone else’s expense. Capital controls push those creeps to the back of the line so the state can do what it needs to do to preserve the failing economy from the attack of speculators. Here’s a clip from a speech Joseph Stiglitz gave in 2014 at the Atlanta Fed’s 2014 Financial Markets Conference. He said:

“When countries do not impose capital controls and allow exchange rates to vary freely, this can give rise to high levels of exchange rate volatility. The consequence can be high levels of economic volatility, imposing great costs on workers and firms throughout the economy. Even if they can lay off some of the risk, there is a cost to doing so. The very existence of this volatility affects the structure of the economy and overall economic performance.”

That sums it up pretty well. Without capital controls, the deep-pocket Wall Street banks and speculators can simply vacuum the money out of an economy leaving the country broken and penniless. This nihilistic decimation of emerging markets via capital flight is what the kleptocracy breezily refers to as “free markets”, the unwavering plundering of civilization to fatten the coffers of the swinish few at the top of the foodchain. That’s got to stop.

Putin needs to put his foot down now; stop the outflow of cash, stop the conversion of rubles to dollars, force investors to recycle their money into the domestic economy, indict the central bank governors and trundle them off to the hoosegow, and reassert the power of the people over the markets. If he doesn’t, then the speculators will continue to peck away until Russia’s reserves are drained-dry and the country is pushed back into another long-term slump. Who wants that?

And don’t think that Putin’s only problem is Washington either, because it isn’t. He’s got an even bigger headache in his own country with the morons who still buy the hogwash that “the market knows best.” These are the fantasists, the corporate toadies, and the fifth columnists, some of whom hold very high office. Here’s a clip I picked up at the Vineyard of the Saker under the heading “Medvedev declares: more of the same”:

(Russian Prime Minister) “Medvedev has just called a government meeting with most of the directors of top Russian corporations and the director of the Russian Central Bank. He immediately announced that he will not introduce any harsh regulatory measures and that he will let the market forces correct the situation. As for the former Minister of Finance, the one so much beloved in the West, Alexei Kudrin, he expressed his full support for the latest increase in interest rates.”

This is lunacy. The US has just turned Russia’s currency into worthless fishwrap, and bonehead Medvedev wants to play nice and return to “business as usual”??

No thanks. Maybe Medvedev wants to be a slave to the market, but I’ll bet Putin is smarter than that.

Putin’s not going to roll over and play dead for these vipers. He’s got to much on the ball for that. He’s going to beat them at their own game, fair and square. He’s going to implement capital controls, restructure the economy away from the west, and aggressively look for ways to deter Washington from spreading its heinous resource war to Central Asia and beyond.

He’s not going to give an inch. You’ll see.


Mike Whitney is a regular columnist for Veracity Voice

Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com

American Exceptionalism and American Torture

December 20, 2014 by · 1 Comment 

In 1964, the Brazilian military, in a US-designed coup, overthrew a liberal (not more to the left than that) government and proceeded to rule with an iron fist for the next 21 years. In 1979 the military regime passed an amnesty law blocking the prosecution of its members for torture and other crimes. The amnesty still holds.

That’s how they handle such matters in what used to be called The Third World. In the First World, however, they have no need for such legal niceties. In the United States, military torturers and their political godfathers are granted amnesty automatically, simply for being American, solely for belonging to the “Good Guys Club”.

So now, with the release of the Senate Intelligence Committee report on CIA torture, we have further depressing revelations about US foreign policy. But do Americans and the world need yet another reminder that the United States is a leading practitioner of torture? Yes. The message can not be broadcast too often because the indoctrination of the American people and Americophiles all around the world is so deeply embedded that it takes repeated shocks to the system to dislodge it. No one does brainwashing like the good ol’ Yankee inventors of advertising and public relations. And there is always a new generation just coming of age with stars (and stripes) in their eyes.

The public also has to be reminded yet again that – contrary to what most of the media and Mr. Obama would have us all believe – the president has never actually banned torture per se, despite saying recently that he had “unequivocally banned torture” after taking office.

Shortly after Obama’s first inauguration, both he and Leon Panetta, the new Director of the CIA, explicitly stated that “rendition” was not being ended. As the Los Angeles Times reported at the time: “Under executive orders issued by Obama recently, the CIA still has authority to carry out what are known as renditions, secret abductions and transfers of prisoners to countries that cooperate with the United States.”

The English translation of “cooperate” is “torture”. Rendition is simply outsourcing torture. There was no other reason to take prisoners to Lithuania, Poland, Romania, Egypt, Jordan, Kenya, Somalia, Kosovo, or the Indian Ocean island of Diego Garcia, amongst other torture centers employed by the United States. Kosovo and Diego Garcia – both of which house large and very secretive American military bases – if not some of the other locations, may well still be open for torture business, as is the Guantánamo Base in Cuba.

Moreover, the key Executive Order referred to, number 13491, issued January 22, 2009, “Ensuring Lawful Interrogations”, leaves a major loophole. It states repeatedly that humane treatment, including the absence of torture, is applicable only to prisoners detained in an “armed conflict”. Thus, torture by Americans outside an environment of “armed conflict” is not explicitly prohibited. But what about torture within an environment of “counter-terrorism”?

The Executive Order required the CIA to use only the interrogation methods outlined in a revised Army Field Manual. However, using the Army Field Manual as a guide to prisoner treatment and interrogation still allows solitary confinement, perceptual or sensory deprivation, sensory overload, sleep deprivation, the induction of fear and hopelessness, mind-altering drugs, environmental manipulation such as temperature and noise, and stress positions, amongst other charming examples of American Exceptionalism.

After Panetta was questioned by a Senate panel, the New York Times wrote that he had “left open the possibility that the agency could seek permission to use interrogation methods more aggressive than the limited menu that President Obama authorized under new rules … Mr. Panetta also said the agency would continue the Bush administration practice of ‘rendition’ … But he said the agency would refuse to deliver a suspect into the hands of a country known for torture or other actions ‘that violate our human values’.”

The last sentence is of course childishly absurd. The countries chosen to receive rendition prisoners were chosen precisely and solely because they were willing and able to torture them.

Four months after Obama and Panetta took office, the New York Times could report that renditions had reached new heights.

The present news reports indicate that Washington’s obsession with torture stems from 9/11, to prevent a repetition. The president speaks of “the fearful excesses of the post-9/11 era”. There’s something to that idea, but not a great deal. Torture in America is actually as old as the country. What government has been intimately involved with that horror more than the United States? Teaching it, supplying the manuals, supplying the equipment, creation of international torture centers, kidnaping people to these places, solitary confinement, forced feeding, Guantánamo, Abu Ghraib, Bagram, Chile, Brazil, Argentina, Chicago … Lord forgive us!

In 2011, Brazil instituted a National Truth Commission to officially investigate the crimes of the military government, which came to an end in 1985. But Mr. Obama has in fact rejected calls for a truth commission concerning CIA torture. On June 17 of this year, however, when Vice President Joseph Biden was in Brazil, he gave the Truth Commission 43 State Department cables and reports concerning the Brazilian military regime, including one entitled “Widespread Arrests and Psychophysical Interrogation of Suspected Subversives.”

Thus it is that once again the United States of America will not be subjected to any accountability for having broken US laws, international laws, and the fundamental laws of human decency. Obama can expect the same kindness from his successor as he has extended to George W.

“One of the strengths that makes America exceptional is our willingness to openly confront our past, face our imperfections, make changes and do better.” – Barack Obama, written statement issued moments after the Senate report was made public.

And if that pile of hypocrisy is not big enough or smelly enough, try adding to it Bidens’ remark re his visit to Brazil: “I hope that in taking steps to come to grips with our past we can find a way to focus on the immense promise of the future.”

If the torturers of the Bush and Obama administrations are not held accountable in the United States they must be pursued internationally under the principles of universal jurisdiction.

In 1984, an historic step was taken by the United Nations with the drafting of the “Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment” (came into force in 1987, ratified by the United States in 1994). Article 2, section 2 of the Convention states: “No exceptional circumstances whatsoever, whether a state of war or a threat of war, internal political instability or any other public emergency, may be invoked as a justification of torture.”

Such marvelously clear, unequivocal, and principled language, to set a single standard for a world that makes it increasingly difficult for one to feel proud of humanity. We cannot slide back. If today it’s deemed acceptable to torture the person who supposedly has the vital “ticking-bomb” information needed to save lives, tomorrow it will be acceptable to torture him to learn the identities of his alleged co-conspirators. Would we allow slavery to resume for just a short while to serve some “national emergency” or some other “higher purpose”?

If you open the window of torture, even just a crack, the cold air of the Dark Ages will fill the whole room.

Cuba … at long, long last … maybe …

Hopefully, it’s what it appears to be. Cuba will now be treated by the United States as a country worthy of at least as much respect as Washington offers to its highly oppressive, murdering, torturing allies in Saudi Arabia, Egypt, Honduras, Israel, Pakistan, Afghanistan, and elsewhere.

It’s a tough decision to normalize relations with a country whose police force murders its own innocent civilians on almost a daily basis, and even more abroad, but Cuba needs to do it. Maybe the Cubans can civilize the Americans a bit.

Let’s hope that America’s terrible economic embargo against the island will go the way of the dinosaurs, and Cuba will be able to demonstrate more than ever what a rational, democratic, socialist society can create. But they must not open the economy for the Yankee blood-suckers to play with as they have all over the world.

And I’ll be able to go to Cuba not as a thief in the night covering my tracks and risking a huge fine.

But with the Republicans taking over Congress next month, all of this may be just a pipe dream.

Barack Obama could have done this six years ago when he took office; or five years ago when American Alan Gross was first arrested and imprisoned in Cuba. It would have been even easier back then, with Obama’s popularity at its height and Congress not as captured by the Know-Nothings as now.

So, Cuba outlasted all the punishment, all the lies, all the insults, all the deprivations, all the murderous sabotage, all the assassination attempts against Fidel, all the policies to isolate the country. But for many years now, it’s the United States that has been isolated in the Western Hemisphere.

Reason Number 13,336 why capitalism will be the death of us.

Antibiotic-resistant bacteria – the “superbugs” – if left unchecked, could result in 10 million deaths a year by 2050. New drugs to fight the superbugs are desperately needed. But a panel advising President Obama warned in September that “there isn’t a sufficiently robust pipeline of new drugs to replace the ones rendered ineffective by antibiotic resistance.”

The problem, it appears, is that “Antibiotics generally provide low returns on investment, so they are not a highly attractive area for research and development.”

Aha! “Low returns on investment”! What could be simpler to understand? Is it not a concept worth killing and dying for? Just as millions of Americans died in the 20th century so corporations could optimize profits by not protecting the public from tobacco, lead, and asbestos.

Corporations are programmed to optimize profits without regard for the society in which they operate, in much the same way that cancer cells are programmed to proliferate without regard for the health of their host.

Happy New Year. Here’s what you have to look forward to in 2015.

  • January 25: 467 people reported missing from a university in Mexico. US State Department blames Russia.
  • February 1: Military junta overthrows President Nicolás Maduro in Venezuela. Washington decries the loss of democracy.
  • February 2: US recognizes the new Venezuelan military junta, offers it 50 jet fighters and tanks.
  • February 3: Revolution breaks out in Venezuela endangering the military junta; 40,000 American marines land in Caracas to quell the uprising.
  • February 16: White police officer in Chicago fatally shoots a 6-year old black boy holding a toy gun.
  • March 6: Congress passes a new law which states that to become president of the United States a person must have the surname Bush or Clinton.
  • April 30: The Department of Homeland Security announces plan to record the DNA at birth of every child born in the United States.
  • May 19: The Supreme Court rules that police may search anyone if they have reasonable grounds for believing that the person has pockets.
  • May 27: The Transportation Security Administration declares that all airline passengers must strip completely nude at check-in and remain thus until arriving at their destination.
  • June 6: White police officer in Oklahoma City tasers a 7-month-old black child, claiming the child was holding a gun; the gun turns out to be a rattle.
  • July 19: Two subway trains collide in Manhattan. The United States demands that Moscow explain why there was a Russian citizen in each of the trains.
  • September 5: The Democratic Party changes its name to the Republican Lite Party, and announces the opening of a joint bank account with the Republican Party so that corporate lobbyists need make out only one check.
  • September 12: White police officer in Alabama shoots black newborn, confusing the umbilical cord for a noose.
  • November 16: President Obama announces that Iran, Syria, Lebanon, Palestine, North Korea, Sudan, Nicaragua, Venezuela, Bolivia and Cuba all possess weapons of mass destruction; have close ties to the Islamic State, al Qaeda, and the Taliban; are aiding pro-Russian rebels in Ukraine; were involved in 9-11; played a role in the assassination of John F. Kennedy and the attack on Pearl Harbor; are an imminent threat to the United States and all that is decent and holy; and are all “really bad guys”, who even (choke, gasp) use torture!
  • November 21: The United States invades Iran, Syria, Lebanon, Palestine, North Korea, Sudan, Nicaragua, Venezuela, Bolivia and Cuba.
  • December 10: Barack Obama is awarded his second Nobel Peace Prize
  • December 11: To celebrate his new peace prize, Obama sends out drones to assassinate wrong-thinking individuals in Somalia, Afghanistan and Yemen.
  • December 13: Members of Ukraine’s neo-Nazi parties, which hold several high positions in the US-supported government, goose-step through the center of Kiev in full German Storm Trooper uniforms, carrying giant swastika flags, shouting “Heil Hitler”, and singing the Horst Wessel song. Not a word of this appears in any American mainstream media.
  • December 15: US Secretary of State warns Russia to stop meddling in Ukraine, accusing Moscow of wanting to re-create the Soviet Union.
  • December 16: White police officer shoots a black 98-year-old man sitting in a wheel chair, claiming the man pointed a rifle at him. The rifle turns out to be a cane.
  • December 28: The Washington Redskins football team finish their season in last place. The White House blames Vladimir Putin.

Notes

  1. Associated Press, December 11, 2014
  2. New York Times, December 11, 2014
  3. Los Angeles Times, February 1, 2009
  4. New York Times, February 6, 2009
  5. New York Times, May 24, 2009
  6. Washington Post, December 11, 2014
  7. National Security Archive’s Brazil Documentation Project
  8. Washington Post, December 10, 2014
  9. See note 7
  10. Washington Post, December 13, 2014


William Blum is the author of:

  • Killing Hope: US Military and CIA Interventions Since World War 2
  • Rogue State: A Guide to the World’s Only Superpower
  • West-Bloc Dissident: A Cold War Memoir
  • Freeing the World to Death: Essays on the American Empire


Portions of the books can be read, and signed copies purchased, at www.killinghope.org

Email to bblum6@aol.com

Website: WilliamBlum.org

William Blum is a regular columnist for Veracity Voice

Will Falling Oil Prices Crash The Markets?

December 14, 2014 by · Leave a Comment 

Shale Leads The Way…

Crude oil prices dipped lower on Wednesday pushing down yields on US Treasuries and sending stocks down sharply. The 30-year UST slipped to a Depression era 2.83 percent while all three major US indices plunged into the red. The Dow Jones Industrial Average (DJIA) led the retreat losing a hefty 268 points before the session ended. The proximate cause of Wednesday’s bloodbath was news that OPEC had reduced its estimate of how much oil it would need to produce in 2015 to meet weakening global demand. According to USA Today:

“OPEC lowered its projection for 2015 production to 28.9 million barrels a day, or about 300,000 fewer than previously forecast, and a 12-year low…. That’s about 1.15 million barrels a day less than the cartel pumped last month, when OPEC left unchanged its 30 million barrel daily production quota…

The steep decline in crude price raises fears that small exploration and production companies could go out of business if the prices fall too low. And that, in turn, could cause turmoil among those who are lending to them: Junk-bond purchasers and smaller banks.” (USA Today)

Lower oil prices do not necessarily boost consumption or strengthen growth. Quite the contrary. Weaker demand is a sign that deflationary pressures are building and stagnation is becoming more entrenched. Also, the 42 percent price-drop in benchmark U.S. crude since its peak in June, is pushing highly-leveraged energy companies closer to the brink. If these companies cannot roll over their debts, (due to the lower prices) then many will default which will negatively impact the broader market. Here’s a brief summary from analyst Wolf Richter:

“The price of oil has plunged …and junk bonds in the US energy sector are getting hammered, after a phenomenal boom that peaked this year. Energy companies sold $50 billion in junk bonds through October, 14% of all junk bonds issued! But junk-rated energy companies trying to raise new money to service old debt or to fund costly fracking or off-shore drilling operations are suddenly hitting resistance.

And the erstwhile booming leveraged loans, the ugly sisters of junk bonds, are causing the Fed to have conniptions. Even Fed Chair Yellen singled them out because they involve banks and represent risks to the financial system. Regulators are investigating them and are trying to curtail them through “macroprudential” means, such as cracking down on banks, rather than through monetary means, such as raising rates. And what the Fed has been worrying about is already happening in the energy sector: leveraged loans are getting mauled. And it’s just the beginning…

“If oil can stabilize, the scope for contagion is limited,” Edward Marrinan, macro credit strategist at RBS Securities, told Bloomberg. “But if we see a further fall in prices, there will have to be a reaction in the broader market as problems will spill out and more segments of the high-yield space will feel the pain.”…Unless a miracle happens that will goose the price of oil pronto, there will be defaults, and they will reverberate beyond the oil patch.” (Oil and Gas Bloodbath Spreads to Junk Bonds, Leveraged Loans. Defaults Next, Wolf Ricter, Wolf Street)

The Fed’s low rates and QE pushed down yields on corporate debt as investors gorged on junk thinking the Fed “had their back”. That made it easier for fly-by-night energy companies to borrow tons of money at historic low rates even though their business model might have been pretty shaky. Now that oil is cratering, investors are getting skittish which has pushed up rates making it harder for companies to refinance their debtload. That means a number of these companies going to go bust, which will create losses for the investors and pension funds that bought their debt in the form of financially-engineered products. The question is, is there enough of this financially-engineered gunk piled up on bank balance sheets to start the dominoes tumbling through the system like they did in 2008?

That question was partially answered on Wednesday following OPEC’s dismal forecast which roiled stocks and send yields on risk-free US Treasuries into a nosedive. Investors ditched their stocks in a mad dash for the exits thinking that the worst is yet to come. USTs provide a haven for nervous investors looking for a safe place to hunker down while the storm passes.

Economist Jack Rasmus has an excellent piece at Counterpunch which explains why investors are so jittery. Here’s a clip from his article titled “The Economic Consequences of Global Oil Deflation”:

“Oil deflation may lead to widespread bankruptcies and defaults for various non-financial companies, which will in turn precipitate financial instability events in banks tied to those companies. The collapse of financial assets associated with oil could also have a further ‘chain effect’ on other forms of financial assets, thus spreading the financial instability to other credit markets.” (The Economic Consequences of Global Oil Deflation, Jack Rasmus, CounterPunch)

Falling oil prices typically drag other commodities prices down with them. This, in turn, hurts emerging markets that depend heavily on the sale of raw materials. Already these fragile economies are showing signs of stress from rising inflation and capital flight. In a country like Japan, however, one might think the effect would be positive since the lower yen has made imported oil more expensive. But that’s not the case. Falling oil prices increase deflationary pressures forcing the Bank of Japan to implement more extreme measures to reverse the trend and try to stimulate growth. What new and destabilizing policy will Japan’s Central Bank employ in its effort to dig its way out of recession? And the same question can be asked of Europe too, which has already endured three bouts of recession in the last five years. Here’s Rasmus again on oil deflation and global financial instability:

“Oil is not only a physical commodity bought, sold and traded on global markets; it has also become an important financial asset since the USA and the world began liberalized trading of oil commodity futures…

Just as declines in oil spills over to declines of other physical commodities…price deflation can also ‘spill over’ to other financial assets, causing their decline as well, in a ‘chain like’ effect.

That chain like effect is not dissimilar to what happened with the housing crash in 2006-08. At that time the deep contraction in the global housing sector ( a physical asset) not only ‘spilled over’ to other sectors of the real economy, but to mortgage bonds…and derivatives based upon those bonds, also crashed. The effect was to ‘spill over’ to other forms of financial assets that set off a chain reaction of financial asset deflation.

The same ‘financial asset chain effect’ could arise if oil prices continued to decline below USD$60 a barrel. That would represent a nearly 50 percent deflation in oil prices that could potentially set in motion a more generalized global financial instability event, possibly associated with a collapse of the corporate junk bond market in the USA that has fueled much of USA shale production.” (CounterPunch)

This is precisely the scenario we think will unfold in the months ahead. What Rasmus is talking about is “contagion”, the lethal spill-over from one asset class to another due to deteriorating conditions in the financial markets and too much leverage. When debts can no longer be serviced, defaults follow sucking liquidity from the system which leads to a sudden (and excruciating) repricing event. Rasmus believes that a sharp cutback in Shale gas and oil production could ignite a crash in junk bonds that will pave the way for more bank closures. Here’s what he says:

“The shake out in Shale that is coming will not occur smoothly. It will mean widespread business defaults in the sector. And since much of the drilling has been financed with risky high yield corporate ‘junk’ bonds, the shale shake out could translate into a financial crash of the US corporate junk bond market, which is now very over-extended, leading to regional bank busts in turn.” (CP)

The financial markets are a big bubble just waiting to burst. If Shale doesn’t do the trick, then something else will. It’s just a matter of time.

Rasmus also believes that the current oil-glut is politically motivated. Washington’s powerbrokers persuaded the Saudis to flood the market with petroleum to push down prices and crush oil-dependent Moscow. The US wants a weak and divided Russia that will comply with US plans to increase its military bases in Central Asia and allow NATO to be deployed to its western borders. Here’s Rasmus again:

“Saudi Arabia and its neocon friends in the USA are targeting both Iran and Russia with their new policy of driving down the price of oil. The impact of oil deflation is already severely affecting the Russian and Iranian economies. In other words, this policy of promoting global oil price deflation finds favor with significant political interests in the USA, who want to generate a deeper disruption of Russian and Iranian economies for reasons of global political objectives. It will not be the first time that oil is used as a global political weapon, nor the last.” (CP)

Washington’s strategy is seriously risky. There’s a good chance the plan could backfire and send stocks into freefall wiping out trillions in a flash. Then all the Fed’s work would amount to nothing.

Karma’s a bitch.


Mike Whitney is a regular columnist for Veracity Voice

Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com

It’s Not Over

December 7, 2014 by · Leave a Comment 

That America is spiraling on a collision course with calamity seems certain. We seem to be ignoring virtually all of the lessons of history, and, well, you know what one fellow said about the folly of doing that. I join the consensus of patriots and freedom-lovers throughout the country who believe America’s future is filled with all sorts of stormy weather. As a matter of fact, the storms are all around us already.

For one thing, most of the people who should be helping us in the freedom fight cannot see past the end of their ballot. They think, as long as they elect “conservatives” to public office, all is well with the world. And since the GOP now controls both houses of Congress in Washington, D.C., the vast majority of our good brothers and sisters are already all tucked in for extended hibernation. They will reemerge from under their blankets about three months before the general election in 2016 and start screaming their support for whomever the neocon candidate happens to be. Why, they are already ignoring the fact that the precious Republicans they just elected to the House and Senate a few weeks ago are already signaling that they will to do NOTHING to thwart Barack Obama’s executive amnesty, which was the single most defining issue that helped give the Congress to the GOP. Republicans on Capitol Hill are famous for doing NOTHING to fulfill the promises they made on the campaign trail to their constituents. And Republican voters are famous for reelecting them anyway. Good grief! Republicans in South Carolina can’t even get rid of Lindsey Graham; and Republicans in Arizona can’t even get rid of John McCain.

Even the great Republican “conservative,” Mitt Romney, is now on record saying that the GOP should “swallow hard” and pass a PERMANENT amnesty bill. And even though he says he is not running for President in two years, he continues to be the frontrunner in most of the GOP preference polls. What does that tell you?

See the report here:

Mitt Romney: Republicans Should ‘Swallow Hard’ And Pass ‘Permanent’ Amnesty Bill

Congresswoman Michele Bachmann had the guts to tell the truth about what the GOP plans to do regarding Obama’s blatantly illegal executive amnesty decision. Bachmann told Breitbart.com that House Speaker John Boehner and the GOP leadership have “no intention” of resisting Obama’s executive amnesty. And she is right.

See the report here:

‘We Will Not Engage’: Michele Bachmann Reveals GOP Plans To Ignore Executive Amnesty

Staunch anti-amnesty senator, Jeff Sessions, said this past Tuesday that the GOP House was about to break their 2014 campaign promises to stop Obama’s executive amnesty. Also on Tuesday, Breitbart.com reported that House Speaker Boehner appears ready to deal with Democrats in order to cut a deal to SAVE amnesty. See the report here:

Boehner Poised To Deal With The Devil To Avoid Shut-Down?

Oh, we can expect Boehner and Company to blow a lot of smoke and pass some frivolous and toothless legislation or resolutions that will be designed to placate a gullible and naïve Republican constituency, but that will do absolutely NOTHING to stop Obama’s amnesty. The only thing John Boehner and his ilk in Congress don’t like is Obama beat them to the punch by issuing executive amnesty to illegals. GOP leaders were hoping to pass legislative amnesty. So, now that Obama has beaten them to the punch, Boehner and his fellow establishment Republicans will quickly fall in line.

But what the U.S. House of Representatives ought to do (if they had any guts, which they don’t) is impeach this President for his executive amnesty.

Barack Obama’s executive amnesty is the worst kind of abuse of power and illegal conduct. The President of the United States is charged with “executing” the laws of our country. He has no lawful authority to set those laws aside with an Executive Order, which is exactly what he did. Compared to the crimes of Barack Obama, the impeachment charges against Bill Clinton look pale. Then again, compared to the Congress of 1994, this Congress looks pale.

The effect of our government’s refusal to respect our nation’s borders and laws over the next several years will be devastating consequences to the very fiber and fabric of this once great republic. The toll on State and local budgets, education quality, crime rates, employment opportunities, and quality of life will be incalculable. And this is just one menace that the miscreants in Washington, D.C., are inflicting upon us.

For much of the Twentieth Century (and now into the Twenty-First Century), Americans repeatedly choose to elect irresponsible, power-hungry, egotistical, self-centered sycophants (from both major parties) to public office. In addition, most of our churches are little more than glorified social clubs, entertainment centers, playgrounds, and government corporations. Our major media, in both the national and most local markets, are largely government propaganda outlets–as are most of our educational institutions. Furthermore, Christians and unbelievers, pastors of all stripes, Republicans and Democrats, and conservatives and liberals alike, are sitting back passively and indifferently as our country is being turned into a humongous Police State. Absent a significant shift in the hearts and minds of the American people, our liberties cannot long endure.

However, with all of the above said, I still refuse to join the ranks of Chicken Little.

For some reason, known only to God, we still have a semblance of freedom in this land. Granted, it’s only a semblance, but the curtain has not yet fully fallen on liberty. God knows we don’t deserve even the semblance of freedom that we still enjoy. Over the last sixty-plus years, we have been doing our best to throw America into the garbage heap of history. But, for some reason, the curtain has not yet fallen completely.

I would like to proffer five suggestions as to why the curtain has not yet fallen on liberty.

1. I believe God is still honoring the faith, courage, commitment, and sacrifice of America’s Founding Fathers. If God would bless Old Testament Israel for the sake of Abraham, Moses, and David, I believe He would bless the United States for the sake of George Washington, Patrick Henry, and Samuel Adams.

From the days of the Pilgrims through the days of the Patriots, several generations of men and women were willing to pay, many times, a horrific price for liberty. There is no doubt in my mind that these modern generations of Americans are still clipping the coupons from the extraordinary faith and courage of our forebears.

2. More than one hundred million American citizens possess over three hundred million firearms. And a good percentage of these people not only possess a gun; they possess the mental, emotional, and spiritual resolve to use those weapons against any government that would seek to take them. There is absolutely no doubt in my mind that the deeply-rooted heritage of the American people to keep and bear arms has been largely responsible for the preservation of whatever liberties we have left. Without a heavily-armed populace within this country, there is absolutely no doubt that America (and the rest of the “free world”) would have been totally enslaved decades ago.

3. The Internet. For all of the baloney, malarkey, and rubbish that can be found on the Internet, there is absolutely no question that the Internet has very successfully circumvented and shattered the monopoly of the government shills of the mainstream media. For all intents and purposes, the Internet is to America today what the “Committees of Correspondence” were to Colonial America.

Many are even predicting that the major television news networks will be out of business within the next couple or three decades–as will many of America’s newspapers. CNN was once a cable dynasty; now it is barely broadcasting. MSNBC’s ratings are so poor that its days are also numbered. And while FOX NEWS is currently enjoying the zenith of its existence, more people are getting their news and newsworthy information from the Internet than from all of the above combined. For all of its negatives, the Internet is a huge net positive for freedom.

4. There is still a host, and I mean a huge host, of liberty-loving people in this country who have not (and will never) accept the shackles of tyranny around their hearts. Big-Government toadies can impugn them all they want, but people such as Ron Paul, Judge Andrew Napolitano, Senator Mike Lee, Congressman Justin Amash, and millions like them, are keeping the torch of liberty burning.

The media would have us believe that old-fashioned, red-blooded freedomists have gone the way of the Brontosaurus. Or, that if any do yet exist, their numbers are so small as to be placed on the list of endangered species. Don’t you believe it!

In every occupation and vocation–including in our U.S. military and federal police agencies–in virtually every village and hamlet dotted across the fruited plain, and in every age bracket, reside innumerable freedom-loving Americans in whose hearts the love of liberty reigns. Before the chains of tyranny can be placed around a person’s neck, they must first be placed around their hearts. And the people I’m talking about will NEVER allow those chains to be placed around their hearts.

5. I believe the curtain has not completely dropped on liberty in this country because of the grace and sovereignty of our Creator-God. Thomas Jefferson (himself an unbeliever in the traditional sense) was exactly right when he said that liberty is the gift of God. That we still enjoy a semblance of freedom in this land indicates that His divine protection still rests upon us.

Those of us who have a Christian perspective realize that Holy Writ tells us: “For it is God which worketh in you both to will and to do of his good pleasure.” (Philippians 2:13) This means that the deeply-seeded love of liberty in our hearts was planted there by our Creator. Our WILL for liberty is God-breathed. That fact, by itself, demonstrates that it’s not over.

There is a line from the 2012 version of the movie “Red Dawn” that I really love. A U.S. Marine fighting with the “Wolverines,” said, “I’m still breathing, so, it’s not over.” Indeed. You and are still breathing, folks, so, IT’S NOT OVER.


Chuck Baldwin is a regular columnist for Veracity Voice

You can reach him at: chuck@chuckbaldwinlive.com
Please visit Chuck’s web site at: http://www.chuckbaldwinlive.com

Talking Turkey

December 6, 2014 by · Leave a Comment 

Putin Gobsmacks Obama and Euro-Leaders with Surprise Gas Deal…

On Monday, Russian President Vladimir Putin clinched a groundbreaking deal with Turkish President Recep Tayyip Erdoğan that will strengthen economic ties between the two nations and make Turkey the major hub for Russian gas in the region. Under the terms of the agreement, Russia will pump additional natural gas to locations in central Turkey and to a “hub at the Turkish-Greek border” which will eventually provide Putin with backdoor access to the lucrative EU market, although Turkey will serve as the critical intermediary. The move creates a de facto Russo-Turkey alliance that could shift the regional balance of power decisively in Moscow’s favor, thus creating another formidable hurtle for Washington’s “pivot to Asia” strategy.  While the media is characterizing the change in plans (Putin has abandoned the South Stream pipeline project that would have transported gas to southern Europe) as a “diplomatic defeat” for Russia, the opposite appears to be the case.  Putin has once again outmaneuvered the US on both the energy and geopolitical fronts adding to his long list of policy triumphs. Here’s a brief summary from Andrew Korybko at Sputnik News:

“Russia has abandoned the troubled South Stream project and will now be building its replacement with Turkey. This monumental decision signals that Ankara has made its choice to reject Euro-Atlanticsm and embrace Eurasian integration.

In what may possibly be the biggest move towards multipolarity thus far,..Turkey, has done away with its former Euro-Atlantic ambitions. A year ago, none of this would have been foreseeable, but the absolute failure of the US’ Mideast policy and the EU’s energy one made this stunning reversal possible in under a year. Turkey is still anticipated to have some privileged relations with the West, but the entire nature of the relationship has forever changed as the country officially engages in pragmatic multipolarity.

Turkey’s leadership made a major move by sealing such a colossal deal with Russia in such a sensitive political environment, and the old friendship can never be restored…The reverberations are truly global.”  (“Cold Turkey: Ankara Buckles Against Western Pressure, Turns to Russia”, Sputnik News)

Korybko seems to be alone in grasping the magnitude of what happened in Ankara on Monday, although –judging by the Obama administration’s silence on the topic–the gravity of the transaction is beginning to sink in.  Grandmaster Vlad’s latest move has caught US powerbrokers flat-footed and left them speechless. This is a scenario that no one had anticipated and, if it’s not handled correctly, could turn out to be a real nightmare. Here’s more on Monday’s press conference from Russia Today:

“Putin said that Russia is ready to build a new pipeline to meet Turkey’s growing gas demand, which may include a special hub on the Turkish-Greek border for customers in southern Europe.

For now, the supply of Russian gas to Turkey will be raised by 3 billion cubic meters via the already operating Blue Stream pipeline…Moscow will also reduce the gas price for Turkish customers by 6 percent from January 1, 2015, Putin said.

“We are ready to further reduce gas prices along with the implementation of our joint large-scale projects,” he added.”  (“Putin: Russia forced to withdraw from S. Stream project due to EU stance”, RT)

How can this happen? How can Putin waltz into Ankara, scribble his name on a few sheets of paper, and abscond with a key US ally right under Washington’s nose?  Isn’t there anyone at the White House who’s smart enough to anticipate a scenario like this or have they all been replaced with warmongering ding-dongs like Susan Rice and Samantha Powers?

The Obama administration has been doing everything in its power to control the flow of gas from east to west and to undermine Russian-EU economic integration. Now it looks like the nimble Putin has found a way to avoid the economic sanctions, (Turkey rejected sanctions on Russia)  avoid US coercion and blackmail (which was used on Bulgaria, Hungary, and Serbia), and avoid Washington’s endless belligerence and hostility, and achieve his objectives at the same time.   But– then again– isn’t that what you’d expect from a level-headed martial arts pro like Putin?

“I won’t beat you,” says Bad Vlad.  “I’ll let you to beat yourself.”

And, so he has. Just ask the befuddled Obama who has yet to prevail in any of his encounters with Putin.

But why the silence? Why hasn’t the White House issued a statement about the big Russian-Turkey gas deal that everyone’s talking about?

I’ll tell you why. It’s because they don’t know what the hell just hit them, that’s why. They were completely blindsided by the announcement and can’t quite figure out what it means for the issues that are on the very top of their foreign policy agenda, like the pivot to Asia, or the wars in Syria and Ukraine, or the much-ballyhooed gas pipeline from Qatar to the EU, that was supposed to transit– you guessed it– Turkey.  Is that plan still in the works or has the Putin-Erdogan alliance put the kibosh on that gem too?   Let’s face it, Putin has really knocked it out of the park this time. Team Obama is clearly out of its league and has no idea of what’s going on. If Turkey turns eastward and joins the growing Russian bloc, US policymakers are going to have to scrap the better part of their strategic plans for the coming century and go back to Square 1. What a headache.

There’s a good article in Wednesday’s New York Times that summarizes Washington’s ambivalence towards South Stream perfectly. Here’s an excerpt:

“Moscow has long presented the project, proposed in 2007, as making good business sense because it would provide a new route for Russian gas to reach Europe. Washington and Brussels have opposed the project on the grounds that it was a vehicle for cementing Russian influence over southern Europe and for bypassing Ukraine, whose price disputes with Gazprom twice interrupted supplies to Europe in recent years.”

Putin’s Surprise Call to Scrap South Stream Gas Pipeline Leaves Europe Reeling”, New York Times)

This has been the argument from the get-go, that selling gas to people in the EU somehow strengthens Putin’s maniacal grip on the continent. What a joke. Would you, dear reader, be willing turn off the heat, tear up your energy bill, and freeze to death in the dark to prove to your gas company that you’re not willing to capitulate to their tyrannical rule?

Of course not, because the idea is ridiculous. Just like blocking South Stream is ridiculous. Putin is selling gas, not tyranny.  He doesn’t want people clicking their heels and goosestepping to work. That’s just propaganda from the people in the oil industry who lost the competition for supplying fuel to the EU. Call it sour grapes if you want, because that’s what it is. Their pipeline failed, (Nabucco) and Putin’s won. End of story. It’s called capitalism. Deal with it.

And here’s another thing: The countries that South Stream would have served, do not have a back-up supplier to meet their growing gas needs. So by following Washington’s lead, they’ve basically shot themselves in the foot. Analysts figure that any replacement for Russian gas will probably be 30 percent more expensive then they would have paid Gazprom.

Hurrah for the US! Hurrah for stupidity!

The US has been determined to sabotage South Stream from the very beginning, mainly because Washington wants its corporations and banks to control the flow of gas to the EU market through privately-owned pipelines in Ukraine. That way they can rake in bigger profits for their moneybags shareholders. Without going into too much detail about the various methods the US has used to torpedo the project, there’s one story that’s worth a look. This is from Zero Hedge:

“…two months before the Ukraine government was overthrown the prime  minister of Bulgaria, Plamen Oresharski,  ordered a halt to work on the South Stream on the recommendation of the EU. The decision was announced after his talks with US senators.

“At this time there is a request from the European Commission, after which we’ve suspended the current works, I ordered it,” Oresharski told journalists after meeting with John McCain, Chris Murphy and Ron Johnson during their visit to Bulgaria on Sunday. “Further proceedings will be decided after additional consultations with Brussels.”

At the time McCain, commenting on the situation, said that “Bulgaria should solve the South Stream problems in collaboration with European colleagues,” adding that in the current situation they would want “less Russian involvement” in the project.

“America has decided that it wants to put itself in a position where it excludes anybody it doesn’t like from countries where it thinks it might have an interest, and there is no economic rationality in this at all,” (said)Ben Aris, editor of Business New Europe told RT.”  (“Europe Gives Bulgaria A Bank System Lifeline As Battle Over “South Stream” Pipeline Heats Up”, Zero Hedge)

Let me get this straight: Madman McCain strolls into town and immediately starts ordering people around telling them he wants  “less Russian involvement”, and that’s enough to bring South Stream to a screeching halt? Is that what you’re telling me?

Yep. Sure sounds like it.

Does that help you see what’s really going here? This isn’t about Putin. It’s about gas, and who’s going to profit from that gas, and in whose currency that gas will be denominated. That’s what it’s about. The rest of the nonsense about “Russian involvement” or terrorism or human rights or national sovereignty is just gibberish. The people who run this country (like McCain), don’t care about that kind of stuff.  What they care about is money; money and power. That’s it.

So what are they going to do now?  How are the big powerboys in Washington going to express their rage over this new threat created by Putin and Erdogan?

It doesn’t take a genius to figure that one out, after all, we’ve seen it a million times before.

They’re going to go after Erdogan hammer and tongs. That’s what they always do, isn’t it?

The only reason they haven’t started in already is because they’re getting their propaganda ducks in a row, which usually takes a day or two. But as soon as that’s taken care of, they’ll start dismantling old Recep one excruciating headline at a time. Erdogan is going to be the new Hitler and the greatest threat to humanity the world has ever seen.  You can bet on it.

Whistleblower Sibel Edmonds thinks that Washington has had-it-in for Erdogan a long time now, dating back to a  dust up he had with the CIA a few years back. In any event, she gives a pretty good account of what we can expect now that Erdogan is on Washington’s enemies list.  Here’s a clip from her post at Boiling Frogs:

“We all know what happens to those puppets when they end up in a rift with the CIA. Don’t we? The rift always brings expiration. Once a puppet is considered expired, then lo and behold, all of a sudden, the reversal branding and marketing begins: All old skeletons are dug out of the deep closets and leaked to the media. His previously overlooked human rights violations are looked at and scrutinized under a microscope. The terrorist card is brought into the equation. And the list goes on…

… All Empire-installed puppets and regimes must commit to the Empire’s commandments….Thou shall not violate the Imperial commandments. Because if you do, thou shall be disgraced, exposed, uninstalled, and may even be given death. All you have to do is look at the past century’s history. See what happens when an installed puppet gets too confident and inflicted with hubris, and ignores one or more commandments. This is when they are reborn as dictators, despots, torturers, and yes, terrorists. This is when their backyards get dug up to find a few grams of weapons of mass destruction.”…

No matter how we look at it Erdogan’s days are numbered … Anyone who ever dares to be this reckless will be punished and made an example for all other installed-puppets…”  (“Turkish PM Erdogan: The Speedy Transformation of an Imperial Puppet”, BFP)

So there it is. That’s what you can expect by the end of the week when the media starts their full-throttle demonizing of Erdogan, the man who dared to act independently and put the interests of his own people above those of the Washington mob bosses.  As anyone who’s followed US foreign policy for the last 60 years will tell you; that’s a big no-no.


Mike Whitney is a regular columnist for Veracity Voice

Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com

Defending Dollar Imperialism

December 6, 2014 by · Leave a Comment 

Ukraine War Driven by Gas-Dollar Link…

“The Fed’s ‘need’ to take on an even more active role as foreigners further slow the purchases of our paper is to put the pedal to the metal on the currency debasement race now being run in the developed world — a race which is speeding us all toward the end of the present currency regime.” Stephanie Pomboy, MacroMavens

“No matter what our Western counterparts tell us, we can see what’s going on. NATO is blatantly building up its forces in Eastern Europe, including the Black Sea and the Baltic Sea areas. Its operational and combat training activities are gaining in scale.” Russian President Vladimir Putin

If there was a way the United States could achieve its long-term strategic objectives and, at the same time, avoid a war with Russia, it would do so. Unfortunately, that is not an option, which is why there’s going to be a clash between the two nuclear-armed adversaries sometime in the near future.

Let me explain: The Obama administration is trying to rebalance US policy in a way that shifts the focus of attention from the Middle East to Asia, which is expected to be the fastest growing region in the coming century. This policy-change is called the “pivot” to Asia. In order to benefit from Asia’s surge of growth, the US plans to beef up its presence on the continent, expand its military bases, strengthen bilateral alliances and trade agreements, and assume the role of regional security kingpin. The not-so-secret purpose of the policy is China “containment”, that is, Washington wants to preserve its position as the world’s only superpower by controlling China’s explosive growth. (The US wants a weak, divided China that will do what it’s told.)

In order to achieve its goals in Asia, the US needs to push NATO further eastward, tighten its encirclement of Russia, and control the flow of oil and gas from east to west. These are the necessary preconditions for establishing US hegemonic rule over the continent. And this is why the Obama administration is so invested in Kiev’s blundering junta-government; it’s because Washington needs Poroshenko’s neo Nazi shock troops to draw Russia into a conflagration in Ukraine that will drain its resources, discredit Putin in the eyes of his EU trading partners, and create the pretext for deploying NATO to Russia’s western border.

The idea that Obama’s proxy army in Ukraine is defending the country’s sovereignty is pure bunkum. What’s going on below the surface is the US is trying to stave off irreversible economic decline and an ever-shrinking share of global GDP through military force. What we’re seeing in Ukraine today, is a 21st century version of the Great Game implemented by political fantasists and Koolaid drinkers who think they can turn the clock back to the post WW2 heyday of the US Empire when the world was America’s oyster. Thankfully, that period is over.

Keep in mind, the glorious US military has spent the last 13 years fighting sheep herders in flip-flops in Afghanistan in a conflict that, at best, could be characterized as a stalemate. And now the White House wants to take on Russia?

Can you appreciate the insanity of the policy?

This is why Secretary of Defense Chuck Hagel was sacked last week, because he wasn’t sufficiently eager to pursue this madcap policy of escalating the wars in Afghanistan, Iraq, Syria and Ukraine. Everyone knows it’s true, the administration hasn’t even tried to deny it. They’d rather stick with foam-at-the-mouth buffoons, like Susan Rice and Samantha Powers, then a decorated veteran who has more credibility and intelligence in his little finger than Obama’s whole National Security team put together.

So now Obama is completely surrounded by rabid warmongering imbeciles, all of whom ascribe to the same fairytale that the US is going to dust-off Russia, remove Assad, redraw the map of the Middle East, control the flow of gas and oil from the ME to markets in the EU, and establish myriad beachheads across Asia where they can keep a tight grip on China’s growth.

Tell me, dear reader, doesn’t that strike you as a bit improbable?

But, of course, the Obama claque think it’s all within their grasp, because, well, because that’s what they’ve been told to think, and because that’s what the US has to do if it wants to maintain its exalted position as the world’s lone superpower when its economic significance in the world is steadily declining. You see, here’s the thing: The exceptional nation is becoming more unexceptional all the time, and that’s what has the political class worried, because they see the handwriting on the wall, and the writing says, “Enjoy it while it lasts, buddy, cuz you ain’t gonna be numero uno much longer.”

And the US has allies in this wacky crusade too, notably Israel and Saudi Arabia. The Saudis have been particularly helpful lately by flooding the market with oil to push down prices and crush the Russian economy. (On Friday, Benchmark crude oil prices plummeted to a four-year low, with Brent crude sinking to $69.11 a barrel.) The Obama administration is using the classic one-two punch of economic sanctions and plunging oil revenues to bully Moscow into withdrawing from Crimea so Washington can move its nuclear arsenal to within spitting distance of Moscow. Here’s a bit of background from the Guardian:

“Think about how the Obama administration sees the state of the world. It wants Tehran to come to heel over its nuclear programme. It wants Vladimir Putin to back off in eastern Ukraine. But after recent experiences in Iraq and Afghanistan, the White House has no desire to put American boots on the ground. Instead, with the help of its Saudi ally, Washington is trying to drive down the oil price by flooding an already weak market with crude. As the Russians and the Iranians are heavily dependent on oil exports, the assumption is that they will become easier to deal with.

John Kerry, the US secretary of state, allegedly struck a deal with King Abdullah in September under which the Saudis would sell crude at below the prevailing market price. That would help explain why the price has been falling at a time when, given the turmoil in Iraq and Syria caused by Islamic State, it would normally have been rising.” (Stakes are high as US plays the oil card against Iran and Russia, Larry Eliot, Guardian)

And here’s more from Salon’s Patrick L. Smith at Salon:

“Less than a week after the Minsk Protocol was signed, Kerry made a little-noted trip to Jeddah to see King Abdullah at his summer residence. When it was reported at all, this was put across as part of Kerry’s campaign to secure Arab support in the fight against the Islamic State.

Stop right there. That is not all there was to the visit, my trustworthy sources tell me. The other half of the visit had to do with Washington’s unabated desire to ruin the Russian economy. To do this, Kerry told the Saudis 1) to raise production and 2) to cut its crude price. Keep in mind these pertinent numbers: The Saudis produce a barrel of oil for less than $30 as break-even in the national budget; the Russians need $105.

Shortly after Kerry’s visit, the Saudis began increasing production, sure enough — by more than 100,000 barrels daily during the rest of September, more apparently to come…

Think about this. Winter is coming, there are serious production outages now in Iraq, Nigeria, Venezuela and Libya, other OPEC members are screaming for relief, and the Saudis make back-to-back moves certain to push falling prices still lower? You do the math, with Kerry’s unreported itinerary in mind, and to help you along I offer this from an extremely well-positioned source in the commodities markets: “There are very big hands pushing oil into global supply now,” this source wrote in an e-mail note the other day.” (What Really Happened in Beijing: Putin, Obama, Xi And The Back Story The Media Won’t Tell You, Patrick L. Smith, Salon)

The Obama team managed to persuade our good buddies the Saudis to flood the market with oil, drive down prices, and put the Russian economy into a nosedive. At the same time, the US has intensified its economic sanctions, done everything in its power to sabotage Gazprom’s South Stream pipeline (that would bypass Ukraine and deliver natural gas to Europe via a southern route), and cajole the Ukrainian parliament into auctioning off 49 percent of the leasing rights and underground storage facilities to privately-owned foreign corporations.

How do you like that? So the US has launched a full-blown economic war against Russia that’s been completely omitted in the western media. Are you surprised?

Washington is determined to block further Russo-EU economic integration in order to collapse the Russian economy and put foreign capital in control of regional energy distribution. It’s all about the pivot. The big money guys figure the US has to pivot to Asia to be a player in the next century. All of these unprovoked attacks on Moscow are based on that one lunatic strategy.

But aren’t people in the EU going to be angry when they can’t get the energy they need (at the prices they want) to run their businesses and heat their homes?

Washington doesn’t think so. Washington thinks its allies in the Middle East can meet the EU’s energy needs without any difficulty. Check out this clip from an article by analyst F. William Engdahl:

“…details are emerging of a new secret and quite stupid Saudi-US deal on Syria and the so-called IS. It involves oil and gas control of the entire region and the weakening of Russia and Iran by Saudi Arabian flooding the world market with cheap oil. ….

On September 11, US Secretary of State Kerry met Saudi King Abdullah at his palace on the Red Sea. The King invited former head of Saudi intelligence, Prince Bandar to attend. There a deal was hammered out which saw Saudi support for the Syrian airstrikes against ISIS on condition Washington backed the Saudis in toppling Assad, a firm ally of Russia and de facto of Iran and an obstacle to Saudi and UAE plans to control the emerging EU natural gas market and destroy Russia’s lucrative EU trade. A report in the Wall Street Journal noted there had been “months of behind-the-scenes work by the US and Arab leaders, who agreed on the need to cooperate against Islamic State, but not how or when.

The process gave the Saudis leverage to extract a fresh US commitment to beef up training for rebels fighting Mr. Assad, whose demise the Saudis still see as a top priority.”
(The Secret Stupid Saudi-US Deal on Syria, F. William Engdahl, BFP)

So the wars in Ukraine and Syria are not really separate conflicts at all. They’re both part of the same global resource war the US has been prosecuting for the last decade and a half. The US plans to cut off the flow of Russian gas and replace it with gas from Qatar which will flow through Syria and onto the EU market after Assad is toppled.

Here’s what’s going on: Syria’s troubles began shortly after it announced that it was going to be part of an “Islamic pipeline” that would transfer natural gas from the South Pars gas field off the coast of Iran across Iraq and Syria, eventually connecting to Greece and the lucrative EU market. According to author Dmitri Minin:

“A gas pipeline from Iran would be highly profitable for Syria. Europe would gain from it as well, but clearly someone in the West didn’t like it. The West’s gas-supplying allies in the Persian Gulf weren’t happy with it either, nor was would-be no. 1 gas transporter Turkey, as it would then be out of the game.” (The Geopolitics of Gas and the Syrian Crisis: Syrian “Opposition” Armed to Thwart Construction of Iran-Iraq-Syria Gas Pipeline, Dmitri Minin, Global Research)

Two months after Assad signed the deal with Iraq and Iran, the rebellion broke out in Syria. That’s quite a coincidence, don’t you think? Funny how frequently those kinds of things happen when foreign leaders don’t march to Washington’s tune.

Here’s more from Minin:

“Qatar is doing all it can to thwart the construction of the pipeline, including arming the opposition fighters in Syria, many of whom come from Saudi Arabia, Pakistan and Libya…

The Arabic newspaper Al-Akhbar cites information according to which there is a plan approved by the U.S. government to create a new pipeline for transporting gas from Qatar to Europe involving Turkey and Israel…

This new pipeline is to begin in Qatar, cross Saudi territory and then the territory of Jordan, thus bypassing Shiite Iraq, and reach Syria. Near Homs the pipeline is to branch in three directions: to Latakia, Tripoli in northern Lebanon, and Turkey. Homs, where there are also hydrocarbon reserves, is the project’s main crossroads, and it is not surprising… that the fiercest fighting is taking place. Here the fate of Syria is being decided. The parts of Syrian territory where detachments of rebels are operating with the support of the U.S., Qatar and Turkey, that is, the north, Homs and the environs of Damascus, coincide with the route that the pipeline is to follow to Turkey and Tripoli, Lebanon. A comparison of a map of armed hostilities and a map of the Qatar pipeline route indicates a link between armed activities and the desire to control these Syrian territories. Qatar’s allies are trying to accomplish three goals: to break Russia’s gas monopoly in Europe; to free Turkey from its dependence on Iranian gas; and to give Israel the chance to export its gas to Europe by land at less cost.”

How do you like that; another coincidence: “The fiercest fighting (in Syria) is taking place” where there’s massive “hydrocarbon reserves” and along the planned pipeline route.

So the conflict in Syria isn’t really about terrorism at all. It’s about natural gas, competing pipelines and access to markets in the EU. It’s about money and power. The whole ISIS-thing is a big hoax to conceal what’s really going on, which is a global war for resources, more blood for oil.

But how does the US benefit from all of this, after all, won’t the gas revenues go to Qatar and the transit countries rather than the US?

Yep, they sure will. But the gas will also be denominated in dollars which will shore up demand for USDs thus perpetuating the petrodollar recycling system which creates a vast market for US debt and which helps to keep US stocks and bonds in the nosebleed section. And that’s what this is all about, preserving dollar supremacy by forcing nations to hold excessive amounts of USDs to use in their energy transactions and to service their dollar-denominated debts.

As long as Washington can control the world’s energy supplies and force the world to trade in dollars, it can spend well in excess of what it produces and not be held to account. It’s like having a credit card you never have to pay off.

That’s a racket Uncle Sam is prepared to defend with everything he’s got, even nukes.


Mike Whitney is a regular columnist for Veracity Voice

Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com

Chinese And Japanese Deflationary Economies

November 29, 2014 by · Leave a Comment 

The global economy has just hit the wall. Do not underestimate the significance of the Asian downturn. Japan saw a dramatic rebirth after WWII and China was transformed into an industrial powerhouse from the “Free Trade” debacle. Now that the Central Bankers of the world are turning to Japan and China to keep the financial bubble from blowing, the focus pivots to the East. Pushing on a string is no easy task. Nervously, all eyes have to wonder if more debt will prevent the expected crash.

When the British financial press warns about Spreading deflation across East Asia threatens fresh debt crisis, people should listen.

“Deflation is becoming lodged in all the economic strongholds of East Asia. It is happening faster and going deeper than almost anybody expected just months ago, and is likely to find its way to Europe through currency warfare in short order.

China is in effect strapped to the rocketing dollar through its quasi-peg, increasingly a torture machine. George Magnus from UBS says this cannot continue. “What is happening in the property market is the tip of the iceberg for the whole economy. China will have to resort to monetary reflation over the winter, and I think this will include a lower yuan. We are heading into a currency war,” he said.”

The Economist provides the establishment viewpoint of the latest strategy in Deflation, deflated.

“WHEN people think of a large Asian country on the brink of deflation, they probably have Japan in mind. But China, the biggest of them all, is now skirting close to outright falls in prices across a wide swathe of the economy. Producer prices have been declining for nearly three years and consumer price inflation is mired at its lowest level since 2010.

Deflation is rightly feared by central bankers around the world as a most destructive economic force, making debts more expensive in real terms and leading to a vicious cycle of contraction as consumers delay purchases and companies put off investments. Yet the Chinese central bank has been remarkably laid-back about the downward lilt in prices. The most obvious tool in its kit to arrest the slide would be to cut interest rates, but it has not done so since July 2012; the benchmark one-year lending rate remains lofty at 6%. What explains the central bank’s calm in the face of falling prices, and is it making a big mistake?”

This last assessment demonstrates that when the shift in direction was announced, the financial community jumped on the bandwagon to In Change of Strategy, China Cuts Interest Rate.

“China finally admitted it has a growth problem — and that is a big step to getting the global economy back on track.

In cutting rates, China joins the parade of global policy makers who are stepping up their stimulus efforts to support growth. They are filling a void left by the United States Federal Reserve, which just ended a six-year bond-buying campaign that has kept borrowing costs low and has encouraged spending worldwide.”

The admission that a massive infusion to recapitalize the international system requires a new source to finance the retracting economies is significant. It seems that a tag team effort between China and Japan will hit the banking houses from different directions.

Japan Fires Another Shot in Global Currency War is the analysis from the Wall Street Journal.

“The Bank of Japan 8301.TO -1.63%’s surprise move to increase its asset purchases has sent the yen plummeting, with the dollar passing through ¥110 Friday to trade at highs not seen in six years. This is the mechanism through which Japan will try to restore inflation to its perennially stagnating economy. The BOJ describes its actions in terms of boosting domestic growth and pricing power, but the real way it works is to export deflation to the rest of the world – it has been doing this ever since the yen began an 30% decline versus the dollar once “Abenomics” stimulus measures were first floated in the fall of 2012.”

Japan will play the role of the QE Federal Reserve policy and the Chinese will finally slash their interest rates. Such moves are not taken because the global economies are prospering. Looking for actual growth is like Waiting for Godot.

The mystery that faces all economies is when does deflation become impervious to further stimulus? How many more times can the deficits, imbalances and shortfalls be papered or rolled over before a depression ensues.

Japan is already the poster child for negative growth and with the irrational expenditures that China has spent on ghost cities, their reported growth rates are about as valid as a stock buy recommendation from a Wall Street firm that is shorting their own portfolio.

Looking to the orient to pull the world out of a lethargic corporatist spiral is problematic at best. China slowed growth now reported at 7.3 percent is seen as setting the stage that fuels debt and property bubbles. Yet the balance of trade surpluses that China continues to build up against American consumption from their exports has never benefited economic conditions in the United States.

The Dollar Collapse site asks: Most of the World Panics — Is the US Next?

  • Will stepped-up debt monetization and interest rate reductions succeed where the past batch failed?
  • Can the US remain aloof from the carnage taking place all around it?

As the Asian economies suffer their own version of contraction on the road to a meltdown, who believes that the transnational corporations that have plotted to off shore their production for decades, will ever reverse their strategy and start returning manufacturing back in the US?

Who will buy the ever increasing US Treasury debt if China unwinds? Of course the Federal Reserve will ratchet up and even bigger QE infusion that will result with more zeros to the national debt.

The most effective solution for America is establishing a tax reform that encourages a domestic renaissance and setting tariffs at levels that will reverse the systemic balance of payments deficits. The worldwide deflation has commenced, so start thinking local and not global.


Sartre is the publisher, editor, and writer for Breaking All The Rules. He can be reached at: BATR

Sartre is a regular columnist for Veracity Voice

The New Slavery

November 27, 2014 by · 1 Comment 

You Are The Slave…

Recently I received a book about the history of Islam.  It is written in inviting prose and covers in detail the saga that unfolded through history from the time of the birth of Ishmael and Isaac.  On the cover is the bust of a soldier armed with a rifle on a background tinted in blood red.  The Tile of the book is “The Blood of the Moon” written by Dr. George Grant and published in 1991.  It is a great read.  I recommend it.

Grant contends that Islam is a religion that cannot be stamped out by the sole use of military force.  Nevertheless he seems to support both Israel and the United States military.  The book provides a clarion call for resistance to an Islamic plan to use brutalities to bring the world under their control.

I have just finished reading through several of R. J. Rushdoony’s books for the second time. .  His writing platform has King Jesus enthroned and active in the affairs of the world. Rushdoony provides superb explanations of the implications of a thorough, literal interpretation of Scripture.  He maintains that righteous government requires righteous citizens.

Good books written by capable thinkers invariably avoid the obvious existence of conspiracies.  We have progressed from the empires of Rome and France where large portions of the world fell under tyranny to quests for new world orders that hope to extend hegemony over the entire earth.  Like the airplanes that spray chemicals in our skies the public and most good commentators ignore reality, preferring instead to live in the comfortable but dangerous world of fantasy.

Chalcedon Foundation has published another collection of Dr. Rushdoony’s musings entitled “Our Threatened Freedom”.  It is a collection of radio spots recorded in the early 1980s.  As with all of Reverend Rushdoony’s commentaries they are incisive and pertinent. They cement the necessity of freedom in creating a prosperous society and pinpoint the insanity of allowing humanism to gain control.  Over and over again Rushdoony documents the irrational chaos created by overzealous humanistic government. The book produces extensive evidence that the checks and balances incorporated into our Constitution are not working.

Unfortunately, Rushdoony does not entertain the premise that irrational chaos is being purposely created throughout the world because chaotic societies are easier to dominate. There is no mention of the yearly Bilderberg meetings (See Here) where the wealthy and powerful meet to discuss and implement their collective agenda.  There is no mention of Zionism, which is a conspiracy, or the International bankers who control currencies, a power which is tantamount to control of the food supply.  David Rockefeller’s long time promotion of world government now confirmed in his book “Memoirs” is not cited.

There is an element of irony in the fact that theologically sound Christian teaching maintains that the Triune God created the world and even in these rebellious and barbaric times is in firm control of current events.  This fact allays the fears and striving of those that oppose the power seekers.  God controls the world and will always do so in spite of the evil efforts of those He created.

Coincidentally, Presidential candidates are often invited to the Bilderberg meetings prior to running for office.

Princeton’s Martin Gilens and Northwestern’s Benjamin I. Page have published a study that concludes “–ordinary citizens have virtually no influence over what their government does in the United States. And economic elites and interest groups, especially those representing business, have a substantial degree of influence. Government policy-making over the last few decades reflects the preferences of those groups — of economic elites and of organized interests.”  Read here and here.

Conspiracies are ignored because “conspiracy theorists” are widely considered a bit whacky. The word “conspiracy” has been demonized to prevent the expression of truth.

The plotters have made great progress in the past several decades World government wonks have become leaders in most Western nations and as the United States military does the bidding of the Zionists, hegemonic progress is occurring in the Muslim world.

Influential neocon Max Boot lobbies for perpetual war seeking the destruction of all enemies of Israel using the United States military.  It has been going on for a long time.  Boot is supported by scores of wealthy, influential neocons in powerful positions throughout the nation; he also has the media and a horde of wild eyed Evangelical Christians that make his current position almost impregnable. We are a giant puppet being controlled by a midget puppeteer creating an anomaly that is regularly ignored by prominent American authors.  Read here and here

Jacob Hornberger (Future of Freedom Foundation) describes the current condition of our nation:  “Is the situation here at home bad? We both know it is. Invasions, occupations, torture, indefinite detention, embargoes, sanctions, foreign aid, empire, militarized police, drug raids, asset forfeiture, infringements on civil liberties, IRS, income taxation, Federal Reserve, fiat money, welfare, minimum-wage laws, and economic regulations. The welfare-warfare state is destroying our freedom, morality, prosperity, and independence. We need to smash this immoral and destructive apparatus out of existence!”

Hornberger is on target with his description and the need to “smash this immoral and destructive apparatus out of existence”.  However, he fails to identify exactly how it is to be smashed!

There are some cracks beginning to appear in one conspiracy that could bode for future confrontation.  Publisher, Editor and writer, Tal Brooke, has used his SPC (Spiritual Counterfeits Project) Journal to bring some light to our current dilemma.  In the latest issue 38.1 and 38.2 he has authored an incisive piece entitled “The Messiah of a Divided People”.  In a paragraph describing the ancient Elders of the Sanhedrin he describes their dissatisfaction with a Messiah “who went like a lamb to the slaughter” preferring one that would defeat the Romans, install Zion as the world ruler and appoint them as rulers of the world

He writes, “This was, and remains, their aim and expectation. They would be the world’s five star generals and judges, Jerusalem would be the center of the World Court.  And they could tell Caesar to roll over like a dog.  They could walk into the city of Rome and take anything they wanted.  They could occupy the palace, they could execute judgment on the multitudes of the treacherous.  The world would finally be theirs as they believed Isaiah had promised them. And these Elders would rule the entire earth from Zion.  This remains the goal.”   (Emphasis mine.)  .  (For copies of the SPC Journal call 510-540-0300)

The same issue of the SPC Journal contains articles by Jewish Christian writers Steven Wohlberg and Steven Sizer.  Confrontation is not about hatred but about justice, peace, truth and righteousness for all people.

Talmudic Zionists realize at least two goal by supporting perpetual war:  They destroy the United States of America, a supposedly Christian nation (a religion they overtly hate), and at the same time contribute to the safety and power of neo-Israel.  Christianity seeks to bring the Creation under the dominion of the Triune God by peaceful means; Talmudic Zionists by stealth; and Islam by siege.

What will happen when these various power structures conflict?  Will the bankers dominate; the Zionists, the international Bilderbergers, Islam, or the business tycoons?  Will the Christian Triune God allow His world to be controlled by evil forces as punishment to rebellious Christians?  Or will Christians repent and allow the sword of the Spirit to Challenge the enemies of Christ?  Time will tell.

Wake up America.  It is not our elected officials who are setting policy for our nation.  Instead, it is the money barons, the Zionists, the Bilderbergers, and the international business tycoons.  That is at least a partial reason why elected officials do not keep their pre-electoral promises.  Obedience to the enabling masters is mandatory and retribution for disobedience is severe – note the fate of Presidents Reagan and Kennedy.

President Nixon set the stage for China to decimate the U. S. economy; President Carter gave away the Panama Canal; the Patriot Act was written long before 9/11, and Obamacare was constructed before his election.  The agenda is set in place before the presidents are elected and the people are expected to blame the puppet president rather than the invisible power centers that are actually setting policy.  The system is working.

It is time for American voters to understand that the candidates for President of the United States are pre-selected and only those obedient candidates are allowed to gain the office.  Voting is a sham to placate the populace.

Overt slavery has been eradicated in most of the Western World but the often denied sinfulness of men has put the entire world under a threat of becoming a massive slave plantation.


Al Cronkrite is a writer living in Florida, reach him at: trueword13@yahoo.com

Al Cronkrite is a regular columnist for Veracity Voice

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