On the 100th Anniversary of World War 1, the Western powers are again sleepwalking into destructive conflict. Hegemonic ambition has Washington interfering in the internal affairs of Ukraine, but developments seem to be moving beyond Washington’s control.
Regime change in Ukraine for a mere $5 billion dollars would be a bargain compared to the massive sums squandered in Iraq ($3,000 billion), Afghanistan ($3,000 billion), Somalia, and Libya, or the money Washington is wasting murdering people with drones in Pakistan and Yemen, or the money Washington has spent supporting al Qaeda in Syria, or the massive sums Washington has wasted surrounding Iran with 40 military bases and several fleets in the Persian Gulf in an effort to terrorize Iran into submission.
So far, in Washington’s attempt at regime change in Ukraine large numbers of Americans are not being killed and maimed. Only Ukrainians are dying, all the better for Washington as the deaths are blamed on the Ukrainian government that the US has targeted for overthrow.
The problem with Washington’s plot to overthrow the elected government of Ukraine and install its minions is twofold: The chosen US puppets have lost control of the protests to armed radical elements with historical links to nazism, and Russia regards an EU/NATO takeover of Ukraine as a strategic threat to Russian independence.
Washington overlooked that the financially viable part of today’s Ukraine consists of historical Russian provinces in the east and south that the Soviet leadership merged into Ukraine in order to dilute the fascist elements in western Ukraine that fought for Adolf Hitler against the Soviet Union. It is these ultra-nationalist elements with nazi roots, not Washington’s chosen puppets, who are now in charge of the armed rebellion in Western Ukraine.
If the democratically elected Ukraine government is overthrown, the eastern and southern parts would rejoin Russia. The western part would be looted by Western bankers and corporations, and the NATO Ukraine bases would be targeted by Russian Iskander missiles.
It would be a defeat for Washington and their gullible Ukrainian dupes to see half of the country return to Russia. To save face, Washington might provoke a great power confrontation, which could be the end of all of us.
My series of articles on the situation in Ukraine resulted in a number of interviews from Canada to Russia, with more scheduled. It also produced emotional rants from people of Ukrainian descent whose delusions are impenetrable by facts. Deranged Russophobes dismissed as propaganda the easily verifiable report of Assistant Secretary of State Nuland’s public address last December, in which she boasted that Washington had spent $5 billion preparing Ukraine to be aligned with Washington’s interests. Protest sympathizers claim that the intercepted telephone call between Nuland and the US Ambassador in Ukraine, in which the two US officials chose the government that would be installed following the coup, is a fake.
One person actually suggested that my position should be aligned with the “sincerity of the Kiev students,” not with the facts.
Some Trekkers and Trekkies were more concerned that I used an improper title for Spock than they were with the prospect of great power confrontation. The point of my article flew off into space and missed planet Earth.
Spock’s mental powers were the best weapon that Starship Enterprise had. Among my graduate school friends, Spock was known as Dr. Spock, because he was the cool, calm, and unemotional member of the crew who could diagnose the problem and save the situation.
There are no Spocks in the US or any Western government and certainly not among the Ukrainian protesters.
I have often wondered if Spock’s Vulcan ancestry was Gene Roddenberry’s way of underlining by contrast the fragility of human reason. In the context of modern military technology, is it possible for life to survive humanity’s penchant for emotion to trump reason and for self-delusion to prevail over factual reality?
Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. His latest books are, The Failure of Laissez Faire Capitalism and How America Was Lost. http://www.paulcraigroberts.org
Source: Paul Craig Roberts
The corporate media would have us believe that the nation is in the midst of an economic recovery.
In the shadow of the approaching mid-term elections, the president cites the number of jobs created and speaks optimistically about America’s economic future. The future is indeed bright, but only if you are among the wealthiest one percent of the population.
For instance, since the 2007 recession, the greatest crisis of capitalism in 75 years, corporate profits have risen, CEO salaries and bonuses are at record levels and the stock market is soaring. By contrast, workers’ wages have stagnated for more than four decades, benefits are either few or non-existent, and workers are encumbered with debt that forces them to perform multiple jobs— if they can find them—in order to survive.
Jobs that offer long-term security and a living wage are scarce even for those with university degrees. Adjusted for inflation, today’s workers are worse off than they were in the late 1960s.
Whose economic recovery is this?
According to economic forecaster Gerald Celente, 90 percent of the jobs created in 2013 were part-time, most of them paying low wages and providing no benefits. Student loan debt exceeds $1.1 trillion, a number that surpasses the combined credit card liability of the nation.
These debts cannot be discharged through bankruptcy. The big banks and corporations that finance political campaigns have no such restrictions placed upon them.
Even the unemployment figures are deceiving. According to the latest government data, unemployment is at 6.7 percent. In reality, that number is probably closer to 17 or 18 percent, according to economist Richard Wolff.
The government does not count people whose unemployment benefits have expired or those who have given up looking for work. A cashier working 10 hours a week at Food Lion is counted as fully employed.
We have students, many of them burdened with immense debt, entering a job market that makes it difficult for them to earn a decent living. This is the economic minefield that workers across America must navigate. A little truth might help them find their way and comprehend why this is happening.
One of the many reasons we face such a bleak economic future is the implementation of Free Trade Agreements (FTAs).
In 1992, the North American Free Trade Agreement (NAFTA) was implemented between the governments of the United States, Canada and Mexico. NAFTA was fast-tracked through Congress by President H.W. Bush and signed into law by President Clinton. NAFTA was promoted in the commercial media as an engine for job creation in the United States, an assertion that is contradicted by the facts. According to Wolff, more than 700,000 jobs fled the country as the result of NAFTA, many of them providing middle class incomes and benefits.
Those jobs are never coming back. It is not just the number of jobs created that matter, it is the quality of those jobs that is a predictor of economic success.
Furthermore, the mass movement of U.S. corporations to Mexico wrecked the already struggling Mexican economy, particularly its sustainable, locally-based businesses. The situation initiated a mass migration of immigrant Mexican workers to the U.S. in search of better-paying jobs than were available to them in the homeland. Multinational corporations seeking a source of cheap labor and a climate of deregulation are the primary benefactors. The quantifiable effect that NAFTA has had on the U.S. workers is staggering job loss, reduced wages and increasing economic disparity.
Now, with the backing of corporate lobbyists, yet another FTA—the Trans-Pacific Partnership (TPP)—is being fast-tracked through Congress. Both Democrats and Republicans are enthusiastically backing the legislation.
The Electronic Frontier Foundation describes the process: “The Trans-Pacific Partnership is a secretive, multi-national trade agreement that threatens to extend restrictive intellectual property (IP) laws across the globe and rewrite international rules on its enforcement.” TPP is currently being negotiated between nine to 12 nations.
If enacted, TPP will permit privately-owned corporations to have hegemony over the governments of sovereign nations. For instance, if the state of West Virginia were to ban the use of genetically modified soybeans, Monsanto Corporation could either overturn the decision or extort billions of dollars in remuneration from their projected loss of profits. FTAs belligerently put corporate profits before the legitimate needs of the people and the welfare of the biosphere.
The implications for students and working class people will be profoundly detrimental.
Hundreds of thousands of jobs will flee the country, wages will fall yet again, autonomy will be lost, and the job market will resemble the wreckage of the Hesperus. FTAs are the means by which the power elite are turning the U.S. into a Third World economy.
Corporatocracy is distinctly the dominate practice when it comes to doing business with the federal government. The once embryonic relationships between favored companies and agency bureaucrats, have germinated into distinctive hybrid organisms. Grafting into self-generating species resistant and virtually immune from pest control methods can be found in every area of government expenditures. The big daddy of cozy dealing is that preverbal military-industrial-security complex.
Who can forget all the government money spent in Iraq and Afghanistan that went to favored corporations with no bid contracts? A prime example of this practice is the notorious Cheney affiliated company, Halliburton Made $39.5 Billion on Iraq War.
“According to the bipartisan Commission on Wartime Contracting in Iraq and Afghanistan, the level of corruption by defense contractors may be as high as $60 billion. Disciplined soldiers that would traditionally do many of the tasks are commissioned by private and publicly listed companies.
Even without the graft, the costs of paying for these services are higher than paying government employees or soldiers to do them because of the profit motive involved. No-bid contracting – when companies get to name their price with no competing bid – didn’t lower legitimate expenses.”
However, this sum is merely chump change when compared to the video report that Rumsfeld Announces $2.3 Trillion Missing from Pentagon. It is one thing to provide contracts to buddy companies, but it quite a different and an outrageous matter to abandon even the appearance of accounting audits of public funds.
Even with this scandal conveniently absent from a much needed accountability the pattern of crony capitalism continues. The left leaning, Center for Public Integrity provides the following stats in Windfalls of war: Pentagon’s no-bid contracts triple in 10 years of war.
“Noncompetitive, sole-source contracts are by no means unique to the Pentagon. Other agencies have been accused of giving short shrift to competition, such as the Federal Emergency Management Agency, which awarded over half of its immediate post-Hurricane Katrina contracts without full competition, according to one congressional report. But based on total dollars, the Pentagon, according to publicly available data analyzed by iWatch News, lags behind all other major departments in competitive contracting. The Pentagon’s competition rate of about 61 percent places it will below other agencies. The State Department in 2010 competed almost 75 percent of its contract dollars, the Department of Homeland Security competed almost 77 percent, and the Energy Department competed 94 percent.”
The NeoCon publication Newsmax in No-Bid Contracts Mark Obama Administration, cites recent figures below, as the Obama, friendly Huffington Press admits the same in No-Bid Contracts Jump 9 Percent Under Obama.
“Federal agencies awarded $115.2 billion in no-bid contracts in fiscal 2012, an 8.9 percent increase from $105.8 billion in 2009, even as total contract spending decreased by 5 percent during the period.”
Citing the absurdity of these abuses, USDA Gives No-Bid Contract to Obama-Connected Marketing Firm, dares expose the wife’s pet projects of Il Duce Obama.
“According to (FOIA) documents, “the USDA awarded SS+K the “unauthorized commitment,” no-bid contract to produce the “Let’s Move” logo, slogan, and artwork for Michelle Obama’s campaign, as well as the creative design for the “Let’s Move” website, which right now features characters from the Muppets as well as photos of Michelle Obama dancing/exercising.”
Also, the look of arrogant favoritism is seen when a First Lady’s College Classmate Linked to No-Bid ObamaCare Contract produced the latest failure of governmental competency.
“A former Princeton classmate of First Lady Michelle Obama is a senior executive at CGI Federal, a company that received a no-bid government contract to set up the ObamaCare website, according to reports by the Daily Caller.”
Thomas Lifson notes in the essay, Unbelievable incompetence led to no-bid contract for healthcare.gov, a very important point. “Any company which screwed up a key product introduction this badly would fire its chief executive. It’s a shame the same remedy does not apply in the public sector.”The political class operates on a continuous need of acquiring an ever increasing level of cash flow. Elected politicians rely upon the donations (translate BRIBES) from their corporate or special interest patrons. Bureaucratic officials maintain and increase their power with expanding the role of their agencies that demand ever-bigger budgets.
There is absolutely no incentive to stop the no bid gravy train as the embattled citizen taxpayers are fleeced with each new overrun contract. However, in an era of permanent budget deficits, monetizing the debt is far more attractive than actually balancing expenditures with real dollar taxes.
Bipartisan acquiescence to this fascist model for pillaging the national treasury is an incontrovertible fact of this continuation of abuses. Then again, the more accurate interpretation is that the entire system is based upon a dishonest culture of perpetual graft and self-enrichment.
Reciprocal preferential treatment is at the core of business dealing with government authorities. No bid contracts are guarantee centers of the funny money circus.
In the article, How to Make Billions Off Government Contracts, the Office of Management and Budget (OMB) references the following.
“Noncompetitive contracting, cost-reimbursement contracts, and time-and-materials and labor-hour (T&M/LH) contracts pose special risks of overspending.
Non-competitive contracts present a risk because there is not a direct market mechanism for setting the contract price. Cost-reimbursement contracts and T&M/LH contracts pose a risk because they provide no direct incentive to the contractor for cost control.”
These systemic problems are even more pronounced with no bid contracts. The lack of comparative pricing is understood by honorable public servants. Nonetheless, the political prostitutes that cook up the sweet heart deals and administer the payoffs are components of the wicked corporatocracy/state alliance.
Benito Mussolini explained that “Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power”, he is really describing the current functions of today’s establishment.
No bid contracts means a particular company is preapproved to rip off the system. With their governmental partners, the fix is set for splitting the spoils. Welcome to the state/capitalism matrix in the 21th century.
An editorial in the Financial Times last week, entitled “End drift to war in the East China Sea,” highlighted the growing alarm in ruling circles about the prospect of a conflict between Japan and China. “The possibility of war,” it declared, “is rapidly emerging as one of the biggest security risks facing the world,” and the two governments “are doing nothing to make conflict less likely.”
The FT focussed on comments by Japanese Prime Minister Shinzo Abe at the World Economic Forum in Davos, Switzerland, in which he explicitly drew the comparison between the current rivalry in East Asia and that between Britain and Germany prior to World War I. “For Japan’s prime minister to allow any comparison with 1914 in Europe is chilling and inflammatory,” it stated.
The immediate source of tensions is the territorial dispute over rocky outcrops in the East China Sea, known as Senkaku in Japan and Diaoyu in China. However, the chief responsibility for inflaming this dangerous flashpoint, along with others throughout the region, lies with the Obama administration’s “pivot to Asia”—a strategy aimed at isolating China economically and diplomatically, and encircling it militarily.
While hypocritically claiming to be “neutral” on the territorial dispute, Washington has repeatedly declared that, in the event of a war over the islands, the US would support its ally Japan. Moreover, as part of the “pivot,” the Obama administration has been restructuring its military bases in Japan and encouraging Japan to remilitarise.
Asia in 2014 does bear a chilling resemblance to Europe in 1914. World War I arose over the intractable competition for spheres of influence between the major powers. As Lenin and Trotsky, the great Marxists of that period explained, it marked the opening of the imperialist epoch—the epoch of the death agony of capitalism.
The global financial crisis that erupted in 2008, the worsening world economic slump and rising geo-political tensions make clear that capitalism has resolved none of the fundamental contradictions that produced the horrors of a century ago.
Over the past decade, US imperialism has plunged into one war of aggression after another—Afghanistan, Iraq, Libya—as well as numerous intrigues and provocations, in a desperate bid to offset its relative economic decline through its military predominance. The installation of Obama as president and his “pivot” to Asia reflected deep concerns in the American establishment that the Bush administration’s focus on the Middle East undermined US hegemony in Asia, including over its cheap labour platforms, above all China, that had become central to corporate profit.
Under Obama, the US has encouraged allies such as Japan and the Philippines to take a more assertive stance in their disputes with China; begun to “rebalance” 60 percent of US air and naval forces to the Indo-Pacific; and is establishing new basing arrangements with Australia and other Asia-Pacific countries as part of its war preparations.
In Japan, the US “pivot” has helped foster the emergence of the right-wing Abe government that, in the space of a year, has increased military spending for the first time in a decade and moved to end constitutional restrictions on the Japanese armed forces. Last month, Abe provocatively visited the notorious Yasukuni Shrine to the country’s war dead—a potent symbol of Japanese militarism in the 1930s and 1940s.
Abe is being driven by the interests of Japanese imperialism, which is not prepared to relinquish its position as a leading power in Asia. In his speech at Davos, Abe dismissed pundits who “called Japan the land of the setting sun” and declared that “a new dawn” was breaking. The two themes of his speech were equally aggressive—thinly-disguised criticisms of China, alongside cut-throat economic measures designed to undermine rivals and turn Japan into one of the “most business-friendly places in the world.”
By likening China to Germany in 1914, Abe is seeking to portray Beijing as a dangerous new menace. Unlike Germany, however, China is not an imperialist power. Despite the size of its economy, it continues to function as a cheap labour platform, completely dependent on foreign corporate investment and technology, as well as the existing centres of finance capital. In the military sphere, the US has an overwhelming preponderance, and a global network of bases and alliances that can threaten Chinese interests anywhere in the world.
Backed into a corner by the US over the past four years, the Chinese leadership has responded by offering further economic concessions to the major powers, on the one hand, while boosting military spending and asserting its claims in waters immediately adjacent to the Chinese mainland, on the other. The Beijing regime is whipping up anti-Japanese chauvinism both to justify its military build-up and to divert attention from the extreme social tensions produced by three decades of capitalist restoration.
While drawing attention to the rising danger of war, the Financial Times editorial offered no solution, other than an impotent appeal for “both sides to stop rattling sabres and start talking to one another.” Ignoring the fact that the US “pivot” has stoked the present confrontation, the editorial appealed for Washington to intervene as the voice of peace and reason. Both Abe and Chinese President Xi Jinping “should look for a route away from Armageddon before it is too late,” it concluded.
However, as in 1914, the drive to war is being fuelled by the inherent contradictions of capitalism—between global economy and the outmoded nation state system, and private ownership of the means of production and socialised production—that have erupted with full force in the wake of the 2008 global breakdown. The only means of averting the catastrophe being prepared for humanity is the abolition of the bankrupt profit system and the socialist reorganisation of society to meet the social needs of vast majority, not the super-profits of a tiny wealthy elite. The dangers of another world war underscore the necessity of rejecting all forms of nationalism and patriotism and building a unified international anti-war movement of workers and youth in China, Japan, the US and around the world to carry out this urgent task.
The economy has been debilitated by the offshoring of middle class jobs for the benefit of corporate profits and by the Federal Reserve’s policy of Quantitative Easing in order to support a few oversized banks that the government protects from market discipline. Not only does QE distort bond and stock markets, it threatens the value of the dollar and has resulted in manipulation of the gold price.
When US corporations send jobs offshore, the GDP, consumer income, tax base, and careers associated with the jobs go abroad with the jobs. Corporations gain the additional profits at large costs to the economy in terms of less employment, less economic growth, reduced state, local and federal tax revenues, wider deficits, and impairments of social services.
When policymakers permitted banks to become independent of market discipline, they made the banks an unresolved burden on the economy. Authorities have provided no honest report on the condition of the banks. It remains to be seen if the Federal Reserve can create enough money to monetize enough debt to rescue the banks without collapsing the US dollar. It would have been far cheaper to let the banks fail and be reorganized.
US policymakers and their echo chamber in the economics profession have let the country down badly. They claimed that there was a “New Economy” to take the place of the “old economy” jobs that were moved offshore. As I have pointed out for a decade, US jobs statistics show no sign of the promised “New Economy.”
The same policymakers and economists who told us that “markets are self-regulating” and that the financial sector could safely be deregulated also confused jobs offshoring with free trade. Hyped “studies” were put together designed to prove that jobs offshoring was good for the US economy. It is difficult to fathom how such destructive errors could consistently be made by policymakers and economists for more than a decade. Were these mistakes or cover for a narrow and selfish agenda?
In June, 2009 happy talk appeared about “the recovery,” now 4.5 years old. As John Williams (shadowstats.com) has made clear, “the recovery” is entirely the artifact of the understated measure of inflation used to deflate nominal GDP. By under-measuring inflation, the government can show low, but positive, rates of real GDP growth. No other indicator supports the claim of economic recovery.
John Williams writes that consumer inflation, if properly measured, is running around 9%, far above the 2% figure that is the Fed’s target and more in line with what consumers are actually experiencing. We have just had a 6.5% annual increase in the cost of a postage stamp.
The Fed’s target inflation rate is said to be low, but Simon Black points out that the result of a lifetime of 2% annual inflation is the loss of 75% of the purchasing power of the currency. He uses the cost of sending a postcard to illustrate the decline in the purchasing power of median household income today compared to 1951. That year it cost one cent to send a post card. As household income was $4,237, the household could send 423,700 postcards. Today the comparable income figure is $51,017. As it costs 34 cents to send one postcard, today’s household can only afford to send 150,050 postcards. Nominal income rose 12 times, and the cost of sending a postcard rose 34 times.
Just as the American people know that there is more inflation than is reported, they know that there is no recovery. The Gallup Poll reported this month that only 28% of Americans are satisfied with the economy. http://www.gallup.com/poll/166871/americans-satisfaction-economy-sours-2001.aspx?version=print
From hard experience, Americans have also caught on that “free trade agreements” are nothing but vehicles for moving their jobs abroad. The latest effort by the corporations to loot and defraud the public is known as the “Trans-Pacific Partnership.” “Fast-tracking” the bill allowed the corporations to write the bill in secret without congressional input. Some research shows that 90% of Americans will suffer income losses under TPP, while wealth becomes even more concentrated at the top.
TPP affects every aspect of our lives from what we eat to the Internet to the environment. According to Kevin Zeese in Alternet, “the leak of the [TPP] Intellectual Property Chapter revealed that it created a path to patent everything imaginable, including plants and animals, to turn everything into a commodity for profit.”
The secretly drafted TPP also creates authority for the executive branch to change existing US law to make the laws that were not passed in secret compatible with the secretly written trade bill. Buy American requirements and any attempt to curtail jobs offshoring would become illegal “restraints on trade.”
If the House and Senate are willing to turn over their legislative function to the executive branch, they might as well abolish themselves.
The financial media has been helping the Federal Reserve and the banks to cover up festering problems with rosy hype, but realization that there are serious unresolved problems might be spreading. Last week interest rates on 30-day T-bills turned negative. That means people were paying more for a bond than it would return at maturity. Dave Kranzler sees this as a sign of rising uncertainty about banks. Reminiscent of the Cyprus banks’ limits on withdrawals, last Friday (January 24) the BBC reported that the large UK bank HSBC is preventing customers from withdrawing cash from their accounts in excess of several thousand pounds.http://www.bbc.co.uk/news/business-25861717
If and when uncertainty spreads to the dollar, the real crisis will arrive, likely followed by high inflation, exchange controls, pension confiscations, and resurrected illegality of owning gold and silver. Capitalist greed aided and abetted by economists and policymakers will have destroyed America.
Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. His latest book, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West is now available.
Source: Paul Craig Roberts
The rancour between Japan and China was on public display at the World Economic Forum in Davos, Switzerland when Japanese Prime Minister Shinzo Abe gave his keynote speech to the gathering of billionaires, bankers, CEOs, and political leaders on Wednesday.
After expounding on his “Abenomics” pro-market restructuring agenda, Abe spent the second half of his speech making barely-veiled jabs at China that were calculated to further inflame tensions.
Abe began by declaring that “freedom of movement” was of particular importance—a reference to the dangerous dispute that emerged last month over China’s declaration of an Air Defence Identification Zone in the East China Sea, including the disputed islets known as Senkaku in Japan and Diaoyu in China.
The US, followed by Japan, immediately flew war planes into the zone unannounced, challenging Chinese authority and sharply escalating tensions. As China scrambled its own fighters in response, the danger emerged of a clash precipitated by a mistake or miscalculation on either side.
Referring to the Senkaku/Diaoyu islands, Abe repeated his adage that disputes should be resolved through dialogue and the rule of law, not through force and coercion. In fact, his government refuses to even recognise that there is a dispute over the rocky outcrops and has stepped up military measures in the area, raising the risk of a military clash.
Again pointing to China, Abe proclaimed the need to “restrain military expansion in Asia, which could otherwise go unchecked.” He called for military budgets to be made “completely transparent”—a criticism repeatedly made by the US and its allies over China’s military spending.
While repeatedly declaring his commitment to peace, Abe last year announced the first increase in the Japanese military budget in a decade. His government continued to shift the strategic focus of the Japanese military to “island defence” and Japan’s southern island chain adjacent to the Chinese mainland.
Japan’s defence expansion has been encouraged and backed by the Obama administration, as part of its “pivot to Asia” that includes strengthening of alliances and partnerships throughout the region aimed against China.
Making clear the dangers of war were real, Abe warned his audience: “If peace and stability were shaken in Asia, the knock-on effect for the entire world would be enormous.”
Asked by the chair of the session, Abe defended his visit in December to the notorious Yasukuni war shrine—a hated symbol of Japanese militarism in the 1930s and 1940s, where many “Class A” Japanese war criminals are buried. Abe claimed he was simply “praying for the souls of the departed,” which should be “something quite natural for a leader of any country in the world.”
While Abe did not name China in the course of his speech, the target of his remarks was unmistakable.
In another Davos session, Chinese academic Wu Xinbo responded by calling Abe a “troublemaker”, likening him to North Korean leader Kim Jong-un. “Political relations between our two countries will remain very cool, even frozen for the remaining years of Abe in Japan,” he warned.
In a less public forum at Davos with international journalists, Abe was more explicit. Asked by Financial Times journalist Gideon Rachman if war with China was “conceivable”, the Japanese prime minister did not rule it out. Instead, he compared the current tensions between China and Japan to the rivalry between Britain and Germany in the years before the World War I, saying that it was a “similar situation”.
While various commentators have made the same comparison, such remarks carry added significance coming from Japan’s prime minister. Abe reinforced the point by declaring that China’s increase in military spending was a major source of instability in the region.
As reported in Rachman’s blog, Abe noted that, “Britain and Germany—like China and Japan—had a strong trading relationship. But in 1914, this had not prevented strategic tensions leading to the outbreak of conflict.” He warned of the danger of “some conflict or dispute arising out the blue, on an ad hoc level… or inadvertently”—a reference to the killing of the Austrian archduke in 1914 that sparked war.
Abe offered no suggestion as to how conflict could be avoided, other than a half-hearted proposal for a “military-force level communications channel” between Beijing and Tokyo. “Unfortunately we don’t have a clear and explicit roadmap,” he said, adding later than Japan would “very much like to strengthen our military relationship with the US.”
This last remark highlights the role of the Obama administration is stoking up tensions throughout the region. Its “pivot to Asia” has encouraged allies as Japan and the Philippines to take a far more aggressive stance in their maritime quarrels with China. Four years ago, the dispute over the Senkaku/Diaoyu islands barely registered in international politics. Today it has become a dangerous flashpoint for war in Asia.
Abe’s speech is part of an escalating propaganda war between Japan and China. Following Abe’s visit to the Yasukuni Shrine on December 26, Chinese and Japanese ambassadors have engaged in embittered exchanges in the newspapers in at least a dozen countries, including the United States, Britain, Australia and New Zealand.
In Britain, the exchange took the bizarre form of likening the other country to Lord Voldemort—the ultimate incarnation of evil the Harry Potter children’s novels—and accusing it of militarism and aggression.
Like the Abe government, the Chinese regime has seized on the dispute to whip up reactionary patriotic sentiment, seeking to divert attention from the social crisis at home and manoeuvre diplomatically abroad. Chinese ambassador Liu Xiaoming concluded his diatribe against Japan with an appeal for Britain and China to renew the World War II alliance—that is, against Japan—in order “to safeguard regional stability and world peace.”
The tensions between Japan and China at Davos, where business and political leaders are supposedly gathered to iron out the problems of global capitalism, underlines the bankruptcy of the social order that they all defend. Five years after the global financial crisis, the economic breakdown continues unabated, fuelling geo-political rivalries that are driving towards a catastrophic war.
Can the sharing economy movement address the root causes of the world’s converging crises? Unless the sharing of resources is promoted in relation to human rights and concerns for equity, democracy, social justice and sustainability, then such claims are without substantiation – although there are many hopeful signs that the conversation is slowly moving in the right direction.
In recent years, the concept and practice of sharing resources is fast becoming a mainstream phenomenon across North America, Western Europe and other world regions. The internet is awash with articles and websites that celebrate the vast potential of sharing human and physical assets, in everything from cars and bicycles to housing, workplaces, food, household items, and even time or expertise. According to most general definitions that are widely available online, the sharing economy leverages information technology to empower individuals or organisations to distribute, share and re-use excess capacity in goods and services. The business icons of the new sharing economy include the likes of Airbnb, Zipcar, Lyft, Taskrabbit and Poshmark, although hundreds of other for-profit as well as non-profit organisations are associated with this burgeoning movement that is predicated, in one way or another, on the age-old principle of sharing.
As the sharing economy receives increasing attention from the media, a debate is beginning to emerge around its overall importance and future direction. There is no doubt that the emergent paradigm of sharing resources is set to expand and further flourish in coming years, especially in the face of continuing economic recession, government austerity and environmental concerns. As a result of the concerted advocacy work and mobilisation of sharing groups in the US, fifteen city mayors have now signed the Shareable Cities Resolution in which they officially recognise the importance of economic sharing for both the public and private sectors. Seoul in South Korea has also adopted a city-funded project called Sharing City in which it plans to expand its ‘sharing infrastructure’, promote existing sharing enterprises and incubate sharing economy start-ups as a partial solution to problems in housing, transportation, job creation and community cohesion. Furthermore, Medellin in Colombia is embracing transport-sharing schemes and reimagining the use of its shared public spaces, while Ecuador is the first country in the world to commit itself to becoming a ‘shared knowledge’-based society, under an official strategy named ‘buen saber’.
Many proponents of the sharing economy therefore have great hopes for a future based on sharing as the new modus operandi. Almost everyone recognises that drastic change is needed in the wake of a collapsed economy and an overstretched planet, and the old idea of the American dream – in which a culture that promotes excessive consumerism and commercialisation leads us to see the ‘good life’ as the ‘goods life’, as described by the psychologist Tim Kasser - is no longer tenable in a world of rising affluence among possibly 9.6 billion people by 2050. Hence more and more people are rejecting the materialistic attitudes that defined recent decades, and are gradually shifting towards a different way of living that is based on connectedness and sharing rather than ownership and conspicuous consumption. ‘Sharing more and owning less’ is the ethic that underlies a discernible change in attitudes among affluent society that is being led by today’s young, tech-savvy generation known as Generation Y or the Millennials.
However, many entrepreneurial sharing pioneers also profess a big picture vision of what sharing can achieve in relation to the world’s most pressing issues, such as population growth, environmental degradation and food security. As Ryan Gourley of A2Share posits, for example, a network of cities that embrace the sharing economy could mount up into a Sharing Regions Network, then Sharing Nations, and finally a Sharing World: “A globally networked sharing economy would be a whole new paradigm, a game-changer for humanity and the planet”. Neal Gorenflo, the co-founder and publisher of Shareable, also argues that peer-to-peer collaboration can form the basis of a new social contract, with an extensive sharing movement acting as the catalyst for systemic changesthat can address the root causes of both poverty and climate change. Or to quote the words of Benita Matofska, founder of The People Who Share, we are going to have to “share to survive” if we want to face up to a sustainable future. In such a light, it behoves us all to investigate the potential of sharing to effect a social and economic transformation that is sufficient to meet the grave challenges of the 21st century.
Two sides of a debate on sharing
There is no doubt that sharing resources can contribute to the greater good in a number of ways, from economic as well as environmental and social perspectives. A number of studies show the environmental benefits that are common to many sharing schemes, such as the resource efficiency and potential energy savings that could result from car sharing and bike sharing in cities. Almost all forms of localised sharing are economical, and can lead to significant cost savings or earnings for individuals and enterprises. In terms of subjective well-being and social impacts, common experience demonstrates how sharing can also help us to feel connected to neighbours or co-workers, and even build community and make us feel happier.
Few could disagree on these beneficial aspects of sharing resources within communities or across municipalities, but some controversy surrounds the broader vision of how the sharing economy movement can contribute to a fair and sustainable world. For many advocates of the burgeoning trend towards economic sharing in modern cities, it is about much more than couch-surfing, car sharing or tool libraries, and holds the potential to disrupt the individualist and materialistic assumptions of neoliberal capitalism. For example, Juliet Schor in her book Plenitude perceives that a new economics based on sharing could be an antidote to the hyper-individualised, hyper-consumer culture of today, and could help rebuild the social ties that have been lost through market culture. Annie Leonard of the Story of Stuff project, in her latest short video on how to move society in an environmentally sustainable and just direction, also considers sharing as a key ‘game changing’ solution that could help to transform the basic goals of the economy.
Many other proponents see the sharing economy as a path towards achieving widespread prosperity within the earth’s natural limits, and an essential first step on the road to more localised economies and egalitarian societies. But far from everyone perceives that participating in the sharing economy, at least in its existing form and praxis, is a ‘political act’ that can realistically challenge consumption-driven economics and the culture of individualism – a question that is raised (although not yet comprehensively answered) in a valuable think piece from Friends of the Earth, as discussed further below. Various commentators argue that the proliferation of new business ventures under the umbrella of sharing are nothing more than “supply and demand continuing its perpetual adjustment to new technologies and fresh opportunities”, and that the concept of the sharing economy is being co-opted by purely commercial interests – a debate that was given impetus when the car sharing pioneers, Zipcar, were bought up by the established rental firm Avis.
Recently, Slate magazine’s business and economics correspondent controversially reiterated the observation that making money from new modes of consumption is not really ‘sharing’ per se, asserting that the sharing economy is therefore a “dumb term” that “deserves to die”. Other journalists have criticised the superficial treatment that the sharing economy typically receives from financial pundits and tech reporters, especially the claims that small business start-ups based on monetised forms of sharing are a solution to the jobs crisis – regardless of drastic cutbacks in welfare and public services, unprecedented rates of income inequality, and the dangerous rise of the precariat. The author Evgeny Morozov, writing an op-ed in the Financial Times, has gone as far as saying that the sharing economy is having a pernicious effect on equality and basic working conditions, in that it is fully compliant with market logic, is far from valuing human relationships over profit, and is even amplifying the worst excesses of the dominant economic model. In the context of the erosion of full-time employment, the assault on trade unions and the disappearance of healthcare and insurance benefits, he argues that the sharing economy is accelerating the transformation of workers into “always-on self-employed entrepreneurs who must think like brands”, leading him to dub it “neoliberalism on steroids”.
Problems of definition
Although it is impossible to reconcile these polarised views, part of the problem in assessing the true potential of economic sharing is one of vagueness in definition and wide differences in understanding. The conventional interpretation of the sharing economy is at present focused on its financial and commercial aspects, with continuous news reports proclaiming its rapidly growing market size and potential as a “co-commerce revolution”. Rachel Botsman, a leading entrepreneurial thinker on the potential of collaboration and sharing through digital technologies to change our lives, has attempted to clarify what the sharing economy actually is in order to prevent further confusion over the different terms in general use. In her latest typology, she notes how the term ‘sharing economy’ is often muddled with other new ideas and is in fact a subset of ‘collaborative consumption’ within the entire ‘collaborative economy’ movement, and has a rather restricted meaning in terms of “sharing underutilized assets from spaces to skills to stuff for monetary or non-monetary benefits” [see slide 9 of the presentation]. This interpretation of changing consumer behaviours and lifestyles revolves around the “maximum utilization of assets through efficient models of redistribution and shared access”, which isn’t necessarily predicated on an ethic of ‘sharing’ by any strict definition.
Other interpretations of the sharing economy are far broader and less constrained by capitalistic assumptions, as demonstrated in the Friends of the Earth briefing paper on Sharing Cities written by Professor Julian Agyeman et al. In their estimation, what’s missing from most of these current definitions and categorisations of economic sharing is a consideration of “the communal, collective production that characterises the collective commons”. A broadened ‘sharing spectrum’ that they propose therefore not only focuses on goods and services within the mainstream economy (which is almost always considered in relation to affluent, middle-class lifestyles), but also includes the non-material or intangible aspects of sharing such as well-being and capability [see page 6 of the brief]. From this wider perspective, they assert that the cutting edge of the sharing economy is often not commercial and includes informal behaviours like the unpaid care, support and nurturing that we provide for one another, as well as the shared use of infrastructure and shared public services.
This sheds a new light on governments as the “ultimate level of sharing”, and suggests that the history of the welfare state in Europe and other forms of social protection is, in fact, also integral to the evolution of shared resources in cities and within different countries. Yet an understanding of sharing from this more holistic viewpoint doesn’t have to be limited to the state provision of healthcare, education, and other public services. As Agyeman et al elucidate, cooperatives of all kinds (from worker to housing to retailer and consumer co-ops) also offer alternative models for shared service provision and a different perspective on economic sharing, one in which equity and collective ownership is prioritised. Access to natural common resources such as air and water can also be understood in terms of sharing, which may then prioritise the common good of all people over commercial or private interests and market mechanisms. This would include controversial issues of land ownership and land use, raising questions over how best to share land and urban space more equitably – such as through community land trusts, or through new policies and incentives such as land value taxation.
The politics of sharing
Furthermore, Agyeman et al argue that an understanding of sharing in relation to the collective commons gives rise to explicitly political questions concerning the shared public realm and participatory democracy. This is central to the many countercultural movements of recent years (such as the Occupy movement and Middle East protests since 2011, and the Taksim Gezi Park protests in 2013) that have reclaimed public space to symbolically challenge unjust power dynamics and the increasing trend toward privatisation that is central to neoliberal hegemony. Sharing is also directly related to the functioning of a healthy democracy, the authors reason, in that a vibrant sharing economy (when interpreted in this light) can counter the political apathy that characterises modern consumer society. By reinforcing values of community and collaboration over the individualism and consumerism that defines our present-day cultures and identities, they argue that participation in sharing could ultimately be reflected in the political domain. They also argue that a shared public realm is essential for the expression of participatory democracy and the development of a good society, not least as this provides a necessary venue for popular debate and public reasoning that can influence political decisions. Indeed the “emerging shareability paradigm”, as they describe it, is said to reflect the basic tenets of the Right to the City (RTTC) – an international urban movement that fights for democracy, justice and sustainability in cities and mobilises against the privatisation of common goods and public spaces.
The intention in briefly outlining some of these differing interpretations of sharing is to demonstrate how considerations of politics, justice, ethics and sustainability are slowly being allied with the sharing economy concept. A paramount example is the Friends of the Earth briefing paper outlined above, which was written as part of FOEI’s Big Ideas to Change the World series on cities that promoted sharing as “a political force to be reckoned with” and a “call to action for environmentalists”. Yet many further examples could also be mentioned, such as the New Economics Foundation’s ‘Manifesto for the New Materialism’ which promotes the old-fashioned ethic of sharing as part of a new way of living to replace the collapsed model of debt-fuelled overconsumption. There are also signs that many influential proponents of the sharing economy – as generally understood today in terms of new economic models driven by peer-to-peer technology that enable access to rather than ownership of resources – are beginning to query the commercial direction that the movement is taking, and are instead promoting more politicised forms of social change that are not merely based on micro-enterprise or the monetisation/branding of high-tech innovations.
Janelle Orsi, a California-based ‘sharing lawyer’ and author of The Sharing Solution, is particularly inspirational in this regard; for her, the sharing economy encompasses such a broad range of activities that it is hard to define, although she suggests that all its activities are tied together in how they harness the existing resources of a community and grow its wealth. This is in contradistinction to the mainstream economy that mostly generates wealth for people outside of people’s communities, and inherently generates extreme inequalities and ecological destruction – which Orsi contends that the sharing economy can help reverse. The problem she recognises is that the so-called sharing economy we usually hear about in the media is built upon a business-as-usual foundation, which is privately owned and often funded by venture capital (as is the case with Airbnb, Lyft, Zipcar, Taskrabbit et cetera). As a result, the same business structures that created the economic problems of today are buying up new sharing economy companies and turning them into ever larger, more centralised enterprises that are not concerned about people’s well-being, community cohesion, local economic diversity, sustainable job creation and so on (not to mention the risk of re-creating stock valuation bubbles that overshadowed the earlier generation of dot.com enterprises). The only way to ensure that new sharing economy companies fulfil their potential to create economic empowerment for users and their communities, Orsi argues, is through cooperative conversion – and she makes a compelling case for the democratic, non-exploitative, redistributive and truly ‘sharing’ potential of worker and consumer cooperatives in all their guises.
Sharing as a path to systemic change
There are important reasons to query which direction this emerging movement for sharing will take in the years ahead. As prominent supporters of the sharing economy recognise, like Janelle Orsi and Juliet Schor, it offers both opportunities and reasons for optimism as well as pitfalls and some serious concerns. On the one hand, it reflects a growing shift in our values and social identities as ‘citizens vs consumers’, and is helping us to rethink notions of ownership and prosperity in a world of finite resources, scandalous waste and massive wealth disparities. Perhaps its many proponents are right, and the sharing economy represents the first step towards transitioning away from the over-consumptive, materially-intense and hoarding lifestyles of North American, Western European and other rich societies. Perhaps sharing really is fast becoming a counter-cultural movement that can help us to value relationships more than things, and offer us the possibility of re-imagining politics and constructing a more participative democracy, which could ultimately pose a challenge to the global capitalist/consumerist model of development that is built on private interests and debt at the cost of shared interests and true wealth.
On the other hand, critics are right to point out that the sharing economy in its present form is hardly a threat to existing power structures or a movement that represents the kind of radical changes we need to make the world a better place. Far from reorienting the economy towards greater equity and a better quality of life, as proposed by writers such as Richard Wilkinson and Kate Pickett, Tim Jackson, Herman Daly and John Cobb, it is arguable that most forms of sharing via peer-to-peer networks are at risk of being subverted by conventional business practices. There is a perverse irony in trying to imagine the logical conclusion of these trends: new models of collaborative consumption and co-production that are co-opted by private interests and venture capitalists, and increasingly geared towards affluent middle-class types or so-called bourgeois bohemians (the ‘bobos’), to the exclusion of those on low incomes and therefore to the detriment of a more equal society. Or new sharing technology platforms that enable governments and corporations to collaborate in pursuing more intrusive controls over and greater surveillance of citizens. Or new social relationships based on sharing in the context of increasingly privatised and enclosed public spaces, such as gated communities within which private facilities and resources are shared.
This is by no means an inevitable outcome, but what is clear from this brief analysis is that the commercialisation and depoliticisation of economic sharing poses risks and contradictions that call into question its potential to transform society for the benefit of everyone. Unless the sharing of resources is promoted in relation to human rights and concerns for equity, democracy, social justice and sound environmental stewardship, then the various claims that sharing is a new paradigm that can address the world’s interrelated crises is indeed empty rhetoric or utopian thinking without any substantiation. Sharing our skills through Hackerspaces, our unused stuff through GoodShuffle or a community potluck through mealshare is, in and of itself, a generally positive phenomenon that deserves to be enjoyed and fully participated in, but let’s not pretend that car shares, clothes swaps, co-housing, shared vacation homes and so on are going to seriously address economic and climate chaos, unjust power dynamics or inequitable wealth distribution.
Sharing from the local to the global
If we look at sharing through the lens of just sustainability, however, as civil society organisations and others are now beginning to do, then the true possibilities of sharing resources within and among the world’s nations are vast and all-encompassing: to enhance equity, rebuild community, improve well-being, democratise national and global governance, defend and promote the global commons, even to point the way towards a more cooperative international framework to replace the present stage of competitive neoliberal globalisation. We are not there yet, of course, and the popular understanding of economic sharing today is clearly focused on the more personal forms of giving and exchange among individuals or through online business ventures, which is mainly for the benefit of high-income groups in the world’s most economically advanced nations. But the fact that this conversation is now being broadened to include the role of governments in sharing public infrastructure, political power and economic resources within countries is a hopeful indication that the emerging sharing movement is slowly moving in the right direction.
Already, questions are being raised as to what sharing resources means for the poorest people in the developing world, and how a revival of economic sharing in the richest countries can be spread globally as a solution to converging crises. It may not be long until the idea of economic sharing on a planetary scale - driven by an awareness of impending ecological catastrophe, life-threatening extremes of inequality, and escalating conflict over natural resources – is the subject of every dinner party and kitchen table conversation.
Agyeman, Julian, Duncan McLaren and Adrianne Schaefer-Borrego, Sharing Cities, Friends of the Earth briefing paper, September 2013.
Bollier, David, Bauwens Joins Ecuador in Planning a Commons-based, Peer Production Economy, 20th September 2013, bollier.org
Botsman, Rachel, The Sharing Economy Lacks a Shared Definition: Giving Meaning to the Terms, Collaborative Lab on Slideshare.net, 19th November 2013.
Childs, Mike, The Power of Sharing: A Call to Action for Environmentalists, Shareable.net, 5th November 2013.
Daly, Herman and John Cobb, For the Common Good: Redirecting the Economy toward Community, the Environment, and a Sustainable Future, Beacon Press, 1991.
Eberlein, Sven, Sharing for Profit – I’m Not Buying it Anymore, Shareable.net, 20th February 2013.
Enright, Michael in interview with Benita Matofska and Aidan Enns, Sharing, Not Buying at Christmas (Hr. 1), CBC Radio, 16th December 2012.
Friends of the Earth, Big Idea 2: Sharing – a political force to be reckoned with?, 26th September 2013.
Gaskins, Kim, The New Sharing Economy, Latitude, 1st June 2010.
Gorenflo, Neal, What’s Next for the Sharing Movement?, Shareable.net, 31st July 2013.
Grahl, Jodi (trans.), World Charter for the Right to the City, International Alliance of Inhabitants et al, May 2005.
Griffiths, Rachel, The Great Sharing Economy, Co-operatives UK, London UK, 2011.
Grigg, Kat, Sharing As Part of the New Economy: An Interview with Lauren Anderson, The Solutions Journal, 20th September 2013.
Heinberg, Richard, Who knew that Seoul was a leader in the sharing economy?, Post Carbon Institute, 12th November 2013.
Herbst, Moira, Let’s get real: the ‘sharing economy’ won’t solve our jobs crisis, The Guardian, 7th January 2014.
Jackson, Tim, Prosperity without Growth: Economics for a Finite Planet, Routeledge, 2011.
Johnson, Cat, From Consumers to Citizens: Welcome to the Sharing Cities Network, Shareable.net, 9th January 2014.
Kasser, Tim, The High Price of Materialism, MIT Press, 2003.
Kisner, Corinne, Integrating Bike Share Programs into a Sustainable Transportation System, National League of Cities, City Practice Brief, Washington D.C., 2011.
Martin, Elliot and Susan Shaheen, The Impact of Carsharing on Household Vehicle Ownership, Access (UCTC magazine), No. 38 Spring 2011.
Matofska, Benita, Facing the future: share to survive, Friends of the Earth blog, 4th January 2013.
Morozov, Evgeny, The ‘sharing economy’ undermines workers’ rights, Financial Times, 14th October 2013.
Olson. Michael J. and Andrew D. Connor, The Disruption of Sharing: An Overview of the New Peer-to-Peer ‘Sharing Economy’ and The Impact on Established Internet Companies, Piper Jaffray, November 2013.
Opinium Research and Marke2ing, The Sharing Economy An overview with special focus on Peer-to-Peer Lending, 14th November 2012.
Orsi, Janelle and Doskow, Emily, The Sharing Solution: How to Save Money, Simplify Your Life and Build Community, Nolo, May 2009.
Orsi, Janelle et al, Policies for Shareable Cities: A Sharing Economy Policy Primer for Urban Leaders, Shareable / The sustainable Economics Law Centre, September 2013.
Orsi, Janelle, The Sharing Economy Just Got Real, Shareable.net, 16th September 2013.
Quilligan, James B., People Sharing Resources: Toward a New Multilateralism of the Global Commons, Kosmos Journal, Fall/Winter 2009.
Schor, Juliet, Plenitude: The New Economics of True Wealth, Tantor Media, 2010.
Simms, Andrew and Ruth Potts, The New Materialism: How our relationship with the material world can change for the better, New Economics Foundation, November 2012.
Standing, Guy, The Precariat: The New Dangerous Class, Bloomsbury Academic, 2011.
Tennant, Ian, What’s in it for me? Do you dare to share?, Friends of the Earth blog, 8th January 2014.
Wiesmann, Thorsten, Living by the Principle of Sharing – an interview with Raphael Fellmer, Oiushare.net, February 2013.
Wilkinson, Richard and Kate Pickett, The Spirit Level: Why Equality is Better for Everyone, Penguin, 2010.
Yglesias, Matthew, There Is No “Sharing Economy”, Slate.com, 26th December 2013.
The tradeoff for cheap goods and financial cronyism is coming back in a big way…
There is always a tradeoff in economics. The adage about a free lunch comes to mind to the rise of low wage capitalism in America. It is a complicated web driven by financial cronyism and a system largely driven by ignoring the plight of the working class. The story of US manufacturing is probably one tiny example of how we exported our middle class in exchange for cheaper goods and a massive amount of income inequality at the top. Yet there is a winner here as well. While the US middle class is shrinking the middle classes of China and India are growing and so is ourincome inequality. This trend tends to grow the economies overseas bus has placed a large burden on the unskilled and working class in the US. This is possibly an inevitably given the global nature of our markets. When you get addicted to low cost goods, you may find yourself in a race to low wage capitalism. In the US and Europe people would not take on the jobs that pay near wage-slave levels and have terrible working conditions in countries that are now booming. While the top wage earners in the US are doing fantastic protected by Wall Street and Washington D.C. (many are diversified across the world), those who get paid in US dollars and come from the working and middle class are having a tough time adapting. The tradeoff has been coming home to roost in a big way.
A low wage bias
While the recession ended in the summer of 2009, the jobs that have been added since then have largely tended to favor low wage employment. Hard to export cashiers and food service workers (although the industry is getting closer to automating those jobs as well). Nothing happens at once. The gradual erosion of the working and middle class goes back a generation. So it is no surprise that this recovery has largely been one of low wage employment. This is why young American workers are in such a tough position with student debt, wages, and being able to purchase a home.
The low wage hiring bias is evident:
A large amount of hiring has come in the form of lower paying and temporary work. You might say this is simply the modern way of things. Yet the massive financial bailouts during the crisis have protected the financiers of Wall Street to the point that they are fully recovered. The crisis occurred largely because they systematically gambled America away by creating instruments of debt to implode the economy. Some hedge funds actually made wealth by betting America’s economy would fail and encouraged the pushing of additional bad mortgage debt to increase their gains when things went bust.
The problem of course is that we have a system where austerity is the new game in town for working and middle class Americans while the financially connected get to fail and put the bill on those who least can afford it. Take a look at the drop in manufacturing jobs and the growth of our financial sector:
In 1960 you had roughly 8 manufacturing jobs for each one in finance. Today this is less than 2 manufacturing jobs per each job in finance. In the real economy, we still purchase goods that have to be made (i.e., cars, real estate, etc). Yet we have a giant industry that for the most part, is rent seeking. Is high frequency trading making things better? What about the crazy unrestricted derivatives market? With real estate most of the recent sales are going to investors. In other words, the shifting of current real assets in the world into the hands of fewer people.
Even in the once stable construction field, we see weak job growth in spite of a booming real estate market.
Why? Because most of the trading is going to investors looking for deals, not new families pushing for new demand on new homes. New home sales are still weak. Of course that should be expected when the typical American worker is making something like $27,000 a year and the median household income is $50,000 a year. Adjusting for inflation, this is now back to levels last seen in the 1980s:
The tradeoff has been tough but people like cheap goods. It is easy to offshore this development and have workers on the other side of the world work for menial wages so people can buy cheap goods. Yet at a certain point, the market hits an equilibrium and the pain comes back home. Once this happens it can be very quickly as we are seeing now with the middle class being hollowed out. At least we’ve done a good job exporting our middle class outside of the US.
Source: My Budget 360
The ideological chains that bind and subdue us are stronger and more effective than any chain forged from steel. These manacles are more freedom inhibiting than a prison cell or solitary confinement. Belief, faith, and hope can imprison as well as liberate us. By the power of suggestion, a thin cotton string can effectively tether an elephant.
Politicians and their associates in the corporate media are master manipulators of language and images. Anytime you hear them speak, think of Plato’s Allegory of the Cave ( http://en.wikipedia.org/wiki/Allegory_of_the_Cave). Virtually everything that we see and hear, nearly everything we have been told, is an officious lie, an illusion created to deceive and control us. The purpose of deception is to promote the dogma and welfare of those in power, while implicitly disempowering those who are being deceived. Language is rarely, if ever, neutral. Coercive ideology lurks behind every sentence.
In a sense, all language is propaganda, even the words on this page. For instance, in this short essay, I declare my intention to lead my readers to a conclusion that I hope will awaken them, promote consciousness, and encourage principled behavior that is conducive to the collective emancipation of the working class.
Our faith in capitalistic institutions promotes the pretense of democracy, while it delivers plutocracy, corporate fascism, and militarism. Similarly, imprudent belief in the American Dream induces people to behave in ways that promote the welfare of those in power rather than the perspectives of those of us struggling to be free. Belief in this discredited notion keeps workers from organizing against their oppressors.
The puppeteers casting shadows on the cave wall know that the images they project are not real. By contrast, the indoctrinated audience interprets the shadows as authentic figures rather than the phantasms they are. The purveyors of mythos and propaganda, the authors of the sanctioned historical narrative that defines reality for the masses, are consciously misleading us. The empowered are aware that we are attempting to navigate a house of mirrors with trap doors, but we continue to believe that the flickering images on the cave wall are real. Interpretation is everything.
Americans believe that we are a free and representative republic, because that is what we have always been told, despite evidence to the contrary. But choosing our oppressors every few years makes us neither free nor democratic. Electoral outcomes that are determined by capital do not give us a real voice in fashioning an equitable economic agenda, taxation, or foreign policy, including decisions about war. Participation in bogus systems of power binds us to delusions and keeps us ideologically imprisoned. They prevent us from taking meaningful action.
In America, working people are excluded from all of the important decisions that profoundly affect their lives. Legislators at all levels of government are beholden to the corporations and wealthy individuals who fund their campaigns. To the power elite, “we the people” are little more than background noise to be tuned out.
Cast a stone at the mirrors and the illusion immediately dissolves into shards of broken glass. A perplexing chain reaction is set in motion; worlds fall like rows of dominoes and fill the vacuum vacated by appearance with new images, new ideas, and new possibilities. Polaris abruptly appears with the stars of Ursa Minor wrapped around her like a jeweled necklace glistening in the velvet black darkness of eternal night. She was always there but concealed behind striated walls of silvered glass in the great American funhouse of lies and delusion we call reality.
Bearing the Allegory of the Cave in mind, consider this: If a worker puts his faith in an economic system that exploits and alienates him, his faith shackles rather than liberates him. Correspondingly, if a man believes that his oppressor is his liberator or protector, he ideologically imprisons himself and promotes behavior that benefits and strengthens his tormentor rather than himself or his socioeconomic class. If he believes that the systems of power serve him and promote justice rather than work for his capitalist masters, he will not attempt to dismantle them. The worker must then not only overcome his oppressor, he must first transcend his own ideological beliefs and ignorance before he can even begin to extricate himself.
In many ways, us workers are our own worst enemy. We lose our humanity, become alienated from our highest self, our families, our communities, our coworkers, and the Earth Mother. As participants in and recipients of unfettered capitalism, we have become the unwitting tools of universal oppression and militarism we claim to disdain. Our demise stems from the misinterpretation of reality and our shifting location within a volatile matrix of phantasmagoric holograms, none of which are real.
We believe what we hear and do what we are told rather than think critically about anything. Questioning authority makes us uncomfortable, and there are always consequences to challenging the dominant paradigm. We have an abiding psychological need to believe that everything we think we know about our country and the world is as advertised because the alternative terrifies us. We thus surrender our conscience and our life to become a tool of the unscrupulous sociopaths in power.
The American worker must comprehend that his assigned role within the capitalist system is not to be a thoughtful or conscious human being, but rather an efficient economic serf, a dehumanized automaton concealed within in a human husk. Painful as this reality is, it does not behoove us to believe or act otherwise. The worker’s plight is like being a solider in the war-torn Middle East: take orders and do what you are told. Check your conscience and your humanity at the door. We all know where that leads.
Armed with this knowledge, perhaps we may finally begin the vital work of our individual and collective emancipation. Our subordinate role in this unequal economic, social, and political arrangement must be challenged and subverted. No one is born a slave. The only power anyone has over us is that which we allow them to have.
2014 is upon us. For a person who graduated from Georgia Tech in 1961, a year in which the class ring showed the same date right side up or upside down, the 21st century was a science fiction concept associated with Stanley Kubrick’s 1968 film, “2001: A Space Odyssey.” To us George Orwell’s 1984 seemed so far in the future we would never get there. Now it is 30 years in the past.
Did we get there in Orwell’s sense? In terms of surveillance technology, we are far beyond Orwell’s imagination. In terms of the unaccountability of government, we exceptional and indispensable people now live a 1984 existence. In his alternative to the Queen’s Christmas speech, Edward Snowden made the point that a person born in the 21st century will never experience privacy. For new generations the word privacy will refer to something mythical, like a unicorn.
Many Americans might never notice or care. I remember when telephone calls were considered to be private. In the 1940s and 1950s the telephone company could not always provide private lines. There were “party lines” in which two or more customers shared the same telephone line. It was considered extremely rude and inappropriate to listen in on someone’s calls and to monopolize the line with long duration conversations.
The privacy of telephone conversations was also epitomized by telephone booths, which stood on street corners, in a variety of public places, and in “filling stations” where an attendant would pump gasoline into your car’s fuel tank, check the water in the radiator, the oil in the engine, the air in the tires, and clean the windshield. A dollar’s worth would purchase 3 gallons, and $5 would fill the tank.
Even in the 1980s and for part of the 1990s there were lines of telephones on airport waiting room walls, each separated from the other by sound absorbing panels. Whether the panels absorbed the sounds of the conversation or not, they conveyed the idea that calls were private.
The notion that telephone calls are private left Americans’ consciousness prior to the NSA listening in. If memory serves, it was sometime in the 1990s when I entered the men’s room of an airport and observed a row of men speaking on their cell phones in the midst of the tinkling sound of urine hitting water and noises of flushing toilets. The thought hit hard that privacy had lost its value.
I remember when I arrived at Merton College, Oxford, for the first term of 1964. I was advised never to telephone anyone whom I had not met, as it would be an affront to invade the privacy of a person to whom I was unknown. The telephone was reserved for friends and acquaintances, a civility that contrasts with American telemarketing.
The efficiency of the Royal Mail service protected the privacy of the telephone. What one did in those days in England was to write a letter requesting a meeting or an appointment. It was possible to send a letter via the Royal Mail to London in the morning and to receive a reply in the afternoon. Previously it had been possible to send a letter in the morning and to receive a morning reply, and to send another in the afternoon and receive an afternoon reply.
When one flies today, unless one stops up one’s ears with something, one hears one’s seat mate’s conversations prior to takeoff and immediately upon landing. Literally, everyone is talking nonstop. One wonders how the economy functioned at such a high level of incomes and success prior to cell phones. I can remember being able to travel both domestically and internationally on important business without having to telephone anyone. What has happened to America that no one can any longer go anywhere without constant talking?
If you sit at an airport gate awaiting a flight, you might think you are listening to a porn film. The overhead visuals are usually Fox “News” going on about the need for a new war, but the cell phone audio might be young women describing their latest sexual affair.
Americans, or many of them, are such exhibitionists that they do not mind being spied upon or recorded. It gives them importance. According to Wikipedia, Paris Hilton, a multimillionaire heiress, posted her sexual escapades online, and Facebook had to block users from posting nude photos of themselves. Sometime between my time and now people ceased to read 1984. They have no conception that a loss of privacy is a loss of self. They don’t understand that a loss of privacy means that they can be intimidated, blackmailed, framed, and viewed in the buff. Little wonder they submitted to porno-scanners.
The loss of privacy is a serious matter. The privacy of the family used to be paramount. Today it is routinely invaded by neighbors, police, Child Protective Services (sic), school administrators, and just about anyone else.
Consider this: A mother of six and nine year old kids sat in a lawn chair next to her house watching her kids ride scooters in the driveway and cul-de-sac on which they live.
Normally, this would be an idyllic picture. But not in America. A neighbor, who apparently did not see the watching mother, called the police to report that two young children were outside playing without adult supervision. Note that the next door neighbor, a woman, did not bother to go next door to speak with the mother of the children and express her concern that they children were not being monitored while they played. The neighbor called the police. http://news.yahoo.com/blogs/sideshow/mom-sues-polices-she-arrested-letting-her-kids-134628018.html
“We’re here for you,” the cops told the mother, who was carried off in handcuffs and spent the next 18 hours in a cell in prison clothes.
The news report doesn’t say what happened to the children, whether the father appeared and insisted on custody of his offspring or whether the cops turned the kids over to Child Protective Services.
This shows you what Americans are really like. Neither the neighbor nor the police had a lick of sense. The only idea that they had was to punish someone. This is why America has the highest incarceration rate and the highest total number of prison inmates in the entire world. Washington can go on and on about “authoritarian” regimes in Russia and China, but both countries have far lower prison populations than “freedom and democracy” America.
I was unaware that laws now exist requiring the supervision of children at play. Children vary in their need for supervision. In my day supervision was up to the mother’s judgment. Older children were often tasked with supervising the younger. It was one way that children were taught responsibility and developed their own judgment.
When I was five years old, I walked to the neighborhood school by myself. Today my mother would be arrested for child endangerment.
In America punishment falls more heavily on the innocent, the young, and the poor than it does on the banksters who are living on the Federal Reserve’s subsidy known as Quantitative Easing and who have escaped criminal liability for the fraudulent financial instruments that they sold to the world. Single mothers, depressed by the lack of commitment of the fathers of their children, are locked away for using drugs to block out their depression. Their children are seized by a Gestapo institution, Child Protective Services, and end up in foster care where many are abused.
According to numerous press reports, 6, 7, 8, 9, and 10 year-old children who play cowboys and indians or cops and robbers during recess and raise a pointed finger while saying “bang-bang” are arrested and carried off to jail in handcuffs as threats to their classmates. In my day every male child and the females who were “Tom boys” would have been taken to jail. Playground fights were normal, but no police were ever called. Handcuffing a child would not have been tolerated.
From the earliest age, boys were taught never to hit a girl. In those days there were no reports of police beating up teenage girls and women or body slamming the elderly. To comprehend the degeneration of the American police into psychopaths and sociopaths, go online and observe the video of Lee Oswald in police custody in 1963. http://www.youtube.com/watch?v=4FDDuRSgzFk Oswald was believed to have assassinated President John F. Kennedy and murdered a Dallas police officer only a few hours previously to the film. Yet he had not been beaten, his nose wasn’t broken, and his lips were not a bloody mess. Now go online and pick from the vast number of police brutality videos from our present time and observe the swollen and bleeding faces of teenage girls accused of sassing overbearing police officers.
In America today people with power are no longer accountable. This means citizens have become subjects, an indication of social collapse.
Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. His latest book, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West is now available.
Source: Paul Craig Roberts
In 33 years of forecasting trends, the Trends Research Institute has never seen a new year that will witness severe economic hardship and social unrest on one hand, and deep philosophic enlightenment and personal enrichment on the other. A series of dynamic socioeconomic and transformative geopolitical trend points are aligning in 2014 to ring in the worst and best of times.
Ready or not, here they come.
March Economic Madness: One of the most difficult aspects of trend forecasting is getting the timing right. And when it comes to economics, there are many wildcards that can stall or detour any on-rushing trend. We called the Crash of ’87, the 1997 Asian Currency Crisis and the Panic of ’08 (we even established the domain name in 2007) right on the button. But we missed the mark with our Crash of 2010 prediction.
Why? The Federal Reserve and central banks around the world were secretly pumping tens of trillions of dollars into a failing financial system. These were, at the time, unimagined schemes for nations that pride themselves on capitalism. And while we are not naïve to the dirty dealings of the financial industry, rigging the daily multi-trillion dollar LIBOR and FOREX markets was not on our radar. Thus, what we believed to be economic truths and hard facts were, in fact, cover-ups and lies….
Such unforeseeable factors aside, we forecast that around March, or by the end of the second quarter of 2014, an economic shock wave will rattle the world equity markets. What will cause this econo-shock? How can you prepare for it? It’s a Top Trend of 2014. Read about it in the Winter Trends Journal.
Global Chinatowns: Name the continent or pick a country, every one contains its own brand of Chinatown. The Chinese global buying binge, now in its early growth stage, will noticeably accelerate in 2014. From coal mines in Zambia, to Borscht Belt resorts in New York, to factories in Italy, and to farmlands in Ukraine, a seemingly endless variety of Chinese development projects are being incubated around the world. If there is a deal to be had and a need to be filled, Chinese players are increasingly at the front of the line.
Wealthy investors, college graduates without jobs, skilled and unskilled laborers will be migrating out of their overpopulated, congested and highly polluted nation to foreign shores. Where are the new growth areas? What actions will be taken to stop or control the trend? Who will benefit? Who will lose? And what are the dangers and opportunities? You’ll find the answers in the Winter Trends Journal.
Wake Up Call: Last year we forecast the Great Awakening 2.0, a period reminiscent of the first Great Awakening that provided the intellectual, philosophical and spiritual ammunition that ignited the American Revolution. The “Awakening” has begun. Throughout 2014, and beyond, you will hear the Wake Up Call. It will be loud and distinct.
In 2013, the White House and Congress proved their extreme incompetence with a series of public failures. From closing down the government, to the debt ceiling debacle, to the aborted attack on Syria and, ultimately, to the disastrous launch of Obamacare, the ineptness of our political leaders was overwhelming. As polls show, a majority of citizens registered levels of scorn and ridicule unparalleled in modern America.
But this phenomenon is not limited to America. Around the world, citizen distrust has turned into universal disdain for entrenched political parties whose draconian austerity measures and punishing economic policies have thrown millions into poverty and pushed millions of protesters into the streets. Civil wars, civil unrest, revolts and revolutions will be just some of the cards dealt by an angry public that has lost everything and has nothing left to lose.
Will those in power hear the Wake Up Call? Or will they attempt to stamp it down and drown it out? Hear it or not, the movement is unstoppable. It will be a battle of the classes. What will it mean? Where will it take the biggest toll? Can the protests and disturbances of tomorrow bring peace and enlightenment that will lead to the Great Awakening 2.0? It’s all in the Top Trends 2014 Winter Trends Journal.
Seniors Own Social Media: Seniors now comprise the fastest-growing user segment of the social media world, and the year ahead will see the retail, business, political, health and entertainment industries evolve aggressive strategies to realize the robust economic potential in engaging seniors.
The gamut of possibilities is so grand that we forecast technological and product advances that impact everything from nursing home life to political campaigns and causes. Read the Winter Trends Journal to pinpoint how this trend will unfold and affect you and your interests.
Populism: Regardless of how professional politicians deride it or how the traditional media describe it, “populism” is a megatrend sweeping Europe, and it will soon spread across the globe. Mired in prolonged recession, disgusted with corrupt political parties, and forced to follow EU, ECB and IMF austerity dictates, populist movements are seeking to regain national identity and break free from the euro and Brussels domination. These movements are positioned to bring down ruling parties and build up new ones.
The discontent of the one-size-fits-all Euro Union formula is so deep that populists are expected to gain some 25 percent of the European Parliament seats in next year’s elections. “We have the big risk to have the most ‘anti-European’ European Parliament ever,” cried Italian Prime Minister Enrico Letta. “The rise of populism is today the main European social and political issue,” Mr. Letta added. “To fight against populism, in my view, is a mission today – in Italy and in the other countries.”
Already, some nations, such as Spain, have passed new laws restricting public demonstrations while imposing police-state measures to stamp out dissent. What is the future of populism? How far will it spread? Will it lead to the formation of new parties, or lead to civil wars? Read about it in the Trends Journal’s Top Trends 2014 edition.
Trouble in Slavelandia: Even as total US personal wealth soars above a record high of $77 trillion, fueled by the stock market’s own record highs, life for the growing number of have-nots in Slavelandia has become more desperate. In today’s Plantation Economy – driven by the bottom line needs of multinationals and flailing austerity-prone governments – low-paying service jobs and reduced hours engineered to evade corporate responsibility to provide benefits, are making it tough for the working poor, a group that now includes debt-burdened and underemployed college graduates and seniors as well as the traditional underclass.
Nearly half of the requests for emergency assistance to stave off hunger or homelessness comes from people with full-time jobs. As government safety nets are pulled out from under them – as they will continue to be for the foreseeable future – the citizens of Slavelandia will have no recourse but action. The fast-food worker strikes of 2013, seeking a higher minimum wage, were just a mild taste of what is to come. Learn more in the WinterTrends Journal.
The New Altruism: Several burgeoning trends identified for 2014 will coalesce in a welcome trend toward selfless concern for the wellbeing of others and an interest in the common good. Across the age divide, from people in their youth to those of advanced years, the search for meaning will intensify and become more widespread in response to waning resources, want, and an over-commodified culture. As despair quietly takes more prisoners, Doing Good will be recognized as the key to escape.
Ironically, the Internet that has been much maligned for currying narcissism will make the donation of money, time and talents so easy that people will be able to enact their better natures without resistance. Be they Boomers in renaissance or populists in revolt, people will discover and expand the humanist side of globalism and act accordingly. See why in the Top Trends of 2014 Winter edition of the Trends Journal.
Private Health Goes Public: While the world focused on the blockbuster NSA surveillance revelations and other cyber-snooping episodes of 2013, another powerful trend line was firmly planted: Your health data has been progressively mined, assembled and made accessible to a widening group of interested parties.
While signing up for the Affordable Care Act brought some attention to this developing trend, around the globe, data on individuals’ health status, behaviors, prescriptions and even their genetic indicators have been funneled to a wide range of databases. Those databases have many purposes and a growing number of hands on them.
The positive and negative implications of this trend are equally powerful. Individuals and their health care providers can more easily tie vital physical data with worldwide medical databases to anticipate and potentially prevent disease. But, in the wrong hands, the data can be used to exploit, damage and take advantage of individuals and their families. Security concerns will rise in equal importance with the potential benefits of this critical trend line.
What does this mean for you, your family, or your business? The Winter Trends Journal will provide the answers.
Boomer Renaissance Arrives: Distinct and strengthening economic, lifestyle and societal determinants are building a creative foundation for the older population as it discovers new approaches to work and finds long-elusive contentment in the process.
You already know that older workers, seeing their retirement plans shattered, have to work beyond traditional retirement years. You also know that those same economic dynamics are forcing aging Boomers to entirely rethink retirement. And, of course, you know that as Boomers are living longer, traditional thinking about retirement has been stood on its head. What you might not realize is how these factors are compelling Boomers to unearth potent creative energies not only to survive, but to realize potential that evaded them in traditional work roles.
In 2014, we will see growing evidence of this Boomer Renaissance, accentuated by waves of self-guided entrepreneurism that alchemizes commerce, survival and self-actualization into a new world and self view. The Winter Trends Journal will explore this compelling 2014 trend in depth.
Digital Learning Explodes: Fears that online educational platforms fall short of providing depth and effectiveness in the learning experience will all but disappear. Across the entire educational spectrum, online learning will expand to include not only course instruction, but also a wealth of real-life learning experience, with considerable participation by the skills-hungry business community.
For individuals, educational institutions, industries, small businesses and up-and-coming entrepreneurs, the implications are enormous. From traditional degree-based education to very specific micro skills-based learning, this trend line explodes. The Trends Research Institute will break down the implications for individuals, business professionals and a range of industries in its Winter Trends Journal.
What does 2014 hold for your online life? If you’re young, it probably won’t involve Facebook that much.
This year marked the start of what looks likely to be a sustained decline of what had been the most pervasive of all social networking sites. Young people are turning away in their droves and adopting other social networks instead, while the worst people of all, their parents, continue to use the service.
As part of a European Union-funded study on social media, we are running nine simultaneous 15-month ethnographic studies in eight countries. What we’ve learned from working with 16-18 year olds in the UK is that Facebook is not just on the slide, it is basically dead and buried. Mostly they feel embarrassed even to be associated with it. Where once parents worried about their children joining Facebook, the children now say it is their family that insists they stay there to post about their lives. Parents have worked out how to use the site and see it as a way for the family to remain connected. In response, the young are moving on to cooler things.
Instead, four new contenders for the crown have emerged: Twitter, Instagram, Snapchat and WhatsApp. This teaches us a number of important lessons about winning the app war.
Slick isn’t always best
It’s worth noting that the sites and apps that have stolen the hearts of Facebook exiles are no match for it in terms of functionality. Most of the school children in our survey recognised that in many ways, Facebook is technically better than Twitter or Instagram. It is more integrated, better for photo albums, organising parties and more effective for observing people’s relationships.
None of these four have the range of integrated functions found on Facebook. WhatsApp is better for messaging and is now said to have overtaken Facebook as the number one way to send mobile messages. But it doesn’t begin to compare as an overall social network site. Neither can the others. This suggests that the dynamics of new media may depend on factors other than function.
Who’s watching you? Who cares?
Many in journalism and elsewhere wanted Facebook to fall. As Facebook became a behemoth, it started to be seen by some as an evil data corporation that represented global neo-liberal capitalism. The company has long been accused of hoovering up your user data and giving advertisers access to it. This year, concern over this type of activity reached an all time high, when it became clear that the NSA was accessing Facebook information. But young people havn’t gone to the expected alternatives. A lot of them have turned to Snapchat, a picture-sharing service that allows you to send pictures that disappear seconds after they have been sent.
While users are migrating from Facebook, they don’t appear to be doing it to make a statement about mass surveillance or big corporations. One of the most popular alternatives is Instagram, a site which allows you to upload and share photos. And who owns this site? Facebook, of course. Among our UK subjects, there was no evidence that these issues affected their choice of social networking service.
My mum wants to friend me
What appears to be the most seminal moment in a young person’s decision to leave Facebook was surely that dreaded day your mum sends you a friend request. You just can’t be young and free if you know your parents can access your every indiscretion. The desire for the new, also drives each new generation to find their own media and this is playing out now in social media. It is nothing new that young people care about style and status in relation to their peers, and Facebook is simply not cool anymore.
For anthropologists each media is best defined in relation to the others, what we call polymedia. So Facebook may look the same in 2014, but it has changed by virtue of this new competition. In my school research, the closest friends are connected to each other via Snapchat, WhatsApp is used to communicate with quite close friends and Twitter the wider friends. Instagram can include strangers and is used a little differently.
Facebook, on the other hand, has become the link with older family, or even older siblings who have gone to university. To prevent overgrazing as others beasts have occupied its terrain, Facebook has to feed off somewhere else. It has thereby evolved into a very different animal.
Source: The Conversation
Turkey is a democracy in name only. Prime Minister Recep Tayyip Erdogan is ruling despot.
He’s led Ankara’s Justice and Development Party (AKP) since August 2001. He’s been prime minister since March 2003. Why Turks put up with him they’ll have to explain.
Last spring, anti-government protests rocked Ankara, Istanbul and other Turkish cities. Police violence followed. Brutality is longstanding policy. Corruption is deep-seated.
It’s rife in Turkey’s construction sector. Erdogan established a land sales office. Ostensibly it was to build affordable public housing.
Widespread privatizations followed. Billions of dollars worth of government assets were sold.
Sweetheart deals and bribes accompanied them. Well-connected companies got no-bid contracts. State banks provided generous financing.
Projects developed had nothing to do with public housing. Berat Albayrak heads Calik Holding. He’s well connected. He’s Erdogan’s son-in-law.
He may be linked to the corruption probe. He builds power plants in Turkmenistan. He’s involved in an AKP backed oil pipeline project. He has other government related business.
The current scandal stems from a year ago anonymous letter. It was sent to police. It alleged Ankara and local government authorities illegally facilitated construction projects. Huge profits were involved.
Surveillance, phone tapping, and other investigatory methods followed. They produced considerable evidence of corruption. Government ministers are involved. Million dollar bribes were paid.
State-run Halk Bank head was found with about $4.5 million in cash. It was at home. It was stashed in shoe boxes.
Millions more were seized from other suspects. Over a dozen are accused of bribery and money laundering, as well as gold and antiques smuggling.
On December 17, Turkey’s Financial Crimes and Battle Against Criminal Incomes department detained 47 people.
Sons of Ankara’s Economy, Interior and Environment and Urban Planning ministers are involved.
So is Fatih district municipality major Mustafa Demir and real estate tycoon Ali Agaoglu. Minister of European Union Affairs Minister Egemen Bagis is being investigated.
Whether scandal touches Erdogan remains to be seen. He claims attempts to do so will be “left empty handed.”
On Christmas day, he reshuffled his cabinet. Three ministers resigned. He sack 10 others. He replaced them. Events are fast-moving.
Erdogan Bayraktar was Minister of Environment and Urban Planning. He was a member of parliament. He felt forced to resign both posts.
He said Erdogan should do so. He claimed suspect construction projects under investigation were approved with Erdogan’s full knowledge.
“With your permission, I want to make very short statements in the form of a press statement,” he said.
“It is of course a right and an authority for Mr. Prime Minister to work with whichever minister he wants and to remove whichever minister he wants from office.”
“But I do not accept the pressure being put on me which says, ‘Resign because of an operation in which there are statements of bribery and corruption and release a declaration that will relieve me.’ “
“I do not (accept it) because a big part of the zoning plans that are in the investigation file and were confirmed were made with approval from Mr. Prime Minister.”
“For the sake of the well-being of this nation, I believe the prime minister should resign.”
He accused him of involvement in suspect property deals. He’s linked to profiteering business interests.
Scandal heads closer to directly connecting him. Perhaps it will as investigations continue. Turkish Professor Soli Ozel called Bayraktar’s call for Erdogan’s resignation “extraordinarily dramatic.”
He’s “someone who was very close to the prime minister. This is someone you’d expect to fall on his sword without question.”
Other analysts see things potentially spinning out of control. Whether Erdogan can prevent it remains to be seen.
He may end up victimized by his own transgressions. It depends on how much public anger grows. He weathered previous crises. It’s hard to know if this one is too great to contain.
Investigations targeted over 90 suspects. Over two dozen were arrested. Dozens of police chiefs were sacked. Erdogan is far from squeaky-clean.
On December 21, Ankara’s police department Anti-Smuggling and Organized Crime Unit head Hakan Yuksekdag was found dead in his car. Officially it was pronounced suicide.
Further investigation is being conducted. The incident occurred a day after 14 senior Ankara National Police Department officials were removed from their posts.
Erdogan blamed ongoing events on an international conspiracy. He vowed revenge on figures connected to Muhammed Fethullah Gulen.
He heads the movement bearing his name. He claims a million or more followers. They include judges and senior police officials.
He’s currently in self-imposed exile. He’s in Pennsylvania. He’s a writer, former imam, and Islamic opinion leader. He’s an important figure.
He’s involved with issues relating to Turkey’s future. He and Erdogan haven’t gotten along for years.
Former Minister of Internal Affairs Idris Naim Sahin said Erdogan’s actions fall short of law and justice. He’s trying to defuse public anger, he said. He’s shifting blame to do it.
Thousands of Istanbul, Ankara, and Ismir protesters demanded Erdogan’s resignation. They did so on Christmas. They did it in other cities. They protested last spring.
They’re justifiably outraged. Their longstanding anger hasn’t waned. Erdogan works against their well-being. Clashes with police erupted. Arrests followed.
Protesters chanted; “Three ministers aren’t enough. The whole government should resign. Corruption is everywhere. Resistance is everywhere.”
Opposition party members accused Erdogan of deepening despotic rule. Critics use the term “deep state.” It refers to a shadowy power structure. It lacks checks and balances.
Turkey’s Republican People’s Party (CHP) is Erdogan’s main rival. It’s Turkey’s oldest political party. It’s AKP’s Main Opposition in the Grand National Assembly. Kemal Kilicdaroglu heads it.
“Erdogan has a ‘deep state,’ ” he said. His AKP “has a ‘deep state.’ ” Efkan Ala is new Interior Minister.
He’s an Erdogan crony. He formerly was Diyarbakir Province governor. He’s part of what’s ongoing, said Kilicdaroglu.
He believes Ala’s appointment is part of an Erdogan power grab. He wants greater police control. Outgoing Interior Minister Muammer Guler fired hundreds of police officers. Senior commanders were sacked.
Erdogan’s new ministers were carefully chosen. He appointed officials “that will not show any opposition to him,” said Kilicdaroglu.
Turkey is more police state than democracy. Press freedom is compromised. Censorship is standard practice. Dissent is verboten. Challenging government authority is called terrorism.
No country imprisons more journalists than Turkey. Corruption is deep-seated. Neoliberal harshness writ large is policy. Popular interests are spurned.
Erdogan represents wealth, power and privilege. It’s hard imagining he’s not involved in corruption in some way. He’s gotten his son-in-law business tycoon sweetheart deals.
He prioritizes Turkey’s business model. It reflects capitalism’s dark side. It includes unrestrained profit-making, privatizations, cheap labor, deregulation, corporate-friendly tax cuts, marginalized worker rights, and speculative capital inflows.
Economic conditions are inherently unstable. Turkey suffers rolling recessions, crisis conditions, and fragile largely jobless recoveries. It’s increasingly dependent on imports of resources and capital goods.
Youth unemployment tops 22%. An entire generation is affected. Conditions are socially and economically unstable.
Privation fuels public anger. Eventually it may spiral out-of-control. It may be just a matter of time. Turkey has a long history of rebellion.
Erdogan is increasingly hated. He weathered last spring’s anti-government protests. It remains to be seen what’s next.
Nicolas Spiro heads Spiro Sovereign Strategy. “The dismissal of half an entire cabinet is worrying enough,” he said. “The corruption probe is escalating by the day.”
It’s “causing a further deterioration in market sentiment towards Turkey.” Erdogan’s new cabinet includes four deputy prime ministers.
Ayse Islam is the only woman appointed. She’s Family and Social Policy Minister. Others include:
Deputy prime minister: Bulent Arinc
Deputy prime minister: Ali Babacan
Deputy prime minister: Besir Atalay
Deputy prime minister: Emrullah Isler
Justice: Bekir Bozdag
Defense: Ismet Yilmaz
Interior: Efkan Ala
Foreign Affairs: Ahmet Davutoglu
European Union: Mevlut Cavusoglu
Finance: Mehmet Simsek
Economy: Nihat Zeybekci
Energy and Natural Resources: Taner Yildiz
National Education: Nabi Avci
Labour and Social Security: Faruk Celik
Environment and Urban Development: Idris Gulluce
Health: Mehmet Muezzinoglu
Transport: Lutfi Elvan
Food, Agriculture and Husbandry: Mehmet Mehdi Eker
Science, Industry and Technology: Fikri Isik
Culture and Tourism: Omer Celik
Forestry and Water Affairs: Veysel Eroglu
Customs and Trade: Hayati Yazici
Development: Cevdet Yilmaz
Youth and Sports: Akif Cagatay Kilic
Scandal erupted months ahead of next March’s local elections. Parliamentary elections involving Erdogan are scheduled in 2015.
If held today, voters might oust him. It’s way too early to know how they’ll react in 2015. Istanbul-based Global Source Partners analyst Atilla Yesilada said ongoing events suggest Erdogan is losing control.
“Forced to act, (he) tried to get rid of his burdens,” he said. “But this is a political crisis, and it is hard to tell how it will unfold. These investigations may expand in coming months.”
Doing so perhaps may link Erdogan to deep-seated corruption. If so, he may be forced to resign. The fullness of time will tell.
Stephen Lendman lives in Chicago. He can be reached at firstname.lastname@example.org.
His new book is titled “Banker Occupation: Waging Financial War on Humanity.”
Visit his blog site at sjlendman.blogspot.com.
“You’re not supposed to be so blind with patriotism that you cannot face reality. Wrong is wrong, no matter who does it or says It.” – Malcolm X
I have been reading political commentary on Black Agenda Report (BAR) regularly of late. The site, which purveys a black leftist perspective, regularly excoriates President Obama, as well they should. BAR has become a trusted source in my quest to understand history and current events. This is the home of the real left, not the pseudo left that pervades the corporate airwaves masquerading as champions of equality. Here, no one is paying homage to Obama or calling him a liberal or progressive simply because he is a black democrat. No one is calling him a socialist, either. The political commentators at BAR hold Obama to the same standard to which they held George W. Bush and his fascist predecessors.
Most of the self-proclaimed liberals who castigated Bush and Cheney for their neoconservative polices are giving Obama, whose polices are no less regressive or extreme than those of his precursors, a free ride. This is because the president belongs to the Democratic Party, which continues to be associated with traditional liberalism in the minds of contemporary faux progressives and liberals, rather than the neoliberalism that defines its policies.
Those who continue to support Obama and his backsliding pro-corporate regime obviously have no conception about what classical liberalism and progressivism are. They are at least half a century behind the times.
Although I may lack the political acumen to concisely define terms such as liberalism, progressivism, and leftist, which are somewhat subjective anyway, it is apparent to me that neoliberalism, the form of liberalism that is actually practiced by today’s Democratic Party, bears much in common with the neoconservatism that is associated with contemporary Republicans. There is nothing progressive about either ideology, and nothing in them that is beneficial to workers. To call Obama a liberal or a socialist, as so many people do, is beyond farcical. It strains one’s credulity to the breaking point.
I distrust Barack Obama for the same reasons that I spurn George W. Bush, Dick Cheney, the Clintons, and any other war mongering capitalist. My criticism has nothing to do with race or gender. It stems from ideological differences, class conflict, and radically dissimilar values from the ruling clique.
Among some black folk, charges of racism are leveled against any white folks who criticize the black president in the same way that charges of anti-Semitism are used against anyone who is critical of Israel’s Zionist polices of apartheid that, with the aid of the U.S., are being carried out against the Palestinians. This is not to deny the racism that is directed against the president. It is to philosophically and morally disassociate myself from any and all groups of white supremacists engaged in bigotry.
If a policy is morally reprehensible and unjust, just people have a moral obligation to criticize it, regardless of who is responsible for formulating and enacting such policies. Every socially conscious human being has an ethical responsibility to take action against criminal government or any corporation that is harming one’s community, or for that matter, the planet.
From my perspective, BAR and WPFW’s Jared Ball are ethically consistent and accurate in their critiques of Barack Obama and American capitalism. These venerable warriors are true leftists who do not compromise their principles for political expediency, cost them what it may.
The virtually defunct radical left was once a formidable and organized political force in the U.S. Today’s leftists are treated like pariahs by the pseudo left and its neocon brethren. Radical leftists pose a viable threat to the established orthodoxy. Anyone who refuses to carry forth the performative role assigned to them by the dominant culture is a threat to those in power. As true combatants for justice, today’s leftwing dissidents are worthy of being associated with iconic revolutionaries like Malcolm X, Fred Hampton, and Mumia Abu Jamal, all of whom happen to be black.
By contrast, Barack Obama, who mouths an endless stream of pseudo liberal platitudes, is an unabashed disciple of Milton Friedman and the market fundamentalism he revered. This identifies the president as a corporate fascist and thus a promoter of inequality. It allies him with America’s ruling class. Obama and his supporters should not be identified in any way, shape or form with thereal left. Whatever minutia one uses to differentiate between contemporary neoliberals and neoconservatives is akin to splitting hairs.
The Democratic Party and the Republican Party are not mortal enemies, as portrayed in the corporate media; they are in collusion against the world’s working class and the poor. Together, they are raping and pillaging the Earth Mother and repressing workers through economic violence and imposed austerity. Like costumed wrestlers performing on television, the acrimony is not real; it is vitriolic political theater, an enthralling puppet show for diehard believers.
We must somehow move beyond party politics, beyond the simplicity of liberal versus conservative dichotomy, beyond left against right, and see things as they really are rather than as we wish them to be.
Voting doesn’t change anything in a system flush with corporate money. The structures that put the money into politics cannot be used to extract it. Without proportional representation or corporate money, third parties are not a viable option in state and federal elections. They are just another distraction from reality, a mild form of symbolic protest. Voting for justice does nothing to actually attain it. Direct action directly applied to a problem offers the best hope for revolutionary change.
Conversely, political dualism keeps us fighting the wrong people. It has us believing in people and institutions that do not promote justice and do us harm. These institutions are not what they purport to be. They are at best a mirage; something that appears real but only exists in the mind of the beholder.
Belief in the American Dream and perverted systems of power as a means to justice provides a method for directing and cajoling the masses to do the biding of the super-wealthy and all-powerful corporate state. Faith, hope, and belief in phony people and bogus institutions function as a form of mass hypnosis that keeps the people from organizing in class struggle against a common oppressor—the capitalist system.
Despite reams of contradictory historical evidence, most people in the U.S. continue to associate democracy with capitalism. It is reckless of us to allow anyone to use these terms interchangeably without contesting them at every opportunity. Let me be clear: Democracy is the antithesis of capitalism! But capitalism is the product the U.S. government, the Pentagon, and the commercial media are marketing to us as democracy. And thus the inequality gap, the disparity between rich and poor, is growing wider rather than shrinking.
The nemesis of all working people, regardless of where they live or their political affiliation, is capitalism and its linear, hierarchal, male-dominated power structures. This is why we must have a truthful critique of capitalism and patriarchy and create alternatives that promote the public wellbeing above corporate profits. Many promising alternatives, such as Professor Richard Wolff’s Worker Self-Directed Enterprise (http://www.democracyatwork.info), already exist.
When the richest and most powerful people on earth, the primary beneficiaries of capitalism, invest so many resources into demonizing and subverting the writings of one man—Karl Marx—and the various economic and philosophic alternatives to capitalism, inquisitive minds want to know why. There are elements of Marxism that makes the power elite quake in their shoes. This is what led me to read Marx years ago. I have been reading him ever since.
Marx has helped me to comprehend why capitalists fear and loathe him. Deep down, they know that he was right. If workers understood capitalism from a Marxist perspective, not one in ten thousand would voluntarily accept their performative role in this exploitative economic system. There would be widespread conflict and social upheaval. There would be global revolution. The power elite spends trillions of dollars to maintain the façade of capitalism as a manifestation of democracy. In fact, I would argue that nothing could be more opposed to democracy than American capitalism.
The key point to understand is that capitalism, a system based upon the ruthless exploitation and commodification of workers and the relentless rape of our Earth Mother, stifles and represses democracy. Capitalists abhor all forms of egalitarianism. Marx embraced them. The mere possibility of an empowered work force troubles the capitalist’s sleep, as did the possibility of slave rebellion, albeit it small, distress the slaveholder.
Consider the vitriol, not to mention counter revolutionary forces that are levied against the alternatives to capitalism. What is their source? Who but wealthy capitalists fund America’s propaganda apparatus? Working people in the U.S. are conditioned to reflexively recoil against ideas they do not understand. They are psychologically programmed to detest that which could potentially set them free. American workers are led to believe that economic servitude and wage slavery is freedom.
Why does a government that calls itself a democracy systemically spy on its citizens? Why does it punish its whistle blowers but materially reward the vilest white-collar criminals? Why is the majority of the U.S. budget spent on funding an insatiable war machine? Why do we raise classrooms of meat puppets rather than critical thinkers and political dissidents? It is all done for the benefit of capitalists at the expense of society.
It is by these means that capitalism survives and spreads like an aggressive malignancy to every organ of the planet. Furthermore, the majority of the wealth produced by labor is subverted to prop up the capitalist system and to indoctrinate and oppress the worker. To the detriment of us all, freethinking and critical analysis are discouraged and often reprimanded in academia and elsewhere. And thus hundreds of millions of human beings are transformed into herd animals that are led to slaughter in the military and the world’s sweat shops. We celebrate our freedom and patriotism on our march to the scalding pots, singing “God Bless America.” There is no fight in us. We go too quietly and too obediently into the good night of eternity.
Yet, despite everything and the repressive weight of history, Americans still have a propensity to believe in myths and fairy tales. Hope and faith in phony leaders and bogus institutions keep us servile and docile. Irrational faith requires nothing from us. Delusion has become the norm because too many of us are incapable of grappling with reality. We can and must do better than capitalism or we are doomed to an ignominious fate.
Indeed. End the Fed.
Sounds so radical doesn’t it? Isn’t the Federal Reserve there to smooth out the economy, to stabilize the currency? To make sure the world doesn’t blow up?
What if I told you that it doesn’t smooth out the business cycle, but exacerbates it. That the dollar has lost 95% of its value since the establishment of the Federal Reserve. And that the world has “blown up” multiple times under the Fed regime? The world is worse for having the Fed in it.
A reasonable person might ask, “Well, I don’t buy it. That’s not what I’ve been told. Wouldn’t things have been even worse without the Fed?”
No. The Fed is the reason we have so much economic instability, and why the world economy is prone to long periods of sub optimal performance. The Fed juices the economy to counter what it perceives as downturns. In so doing it creates malinvestment while times are “good.” When (artificially) easy money flows businesses and governments make stupid decisions. They leverage themselves out too much, much more than if the market set the overall rates of interest. They build where they shouldn’t build. They loan money to people they shouldn’t loan money to. And eventually all this malinvestment crumbles on itself and creates a recession or depression.
Sadly the Fed doesn’t then just abolish itself in the face of another failure. No, it is usually during these times where the Fed, the very entity which has created the problems in the economy, gains more power as politicians scurry around trying to look as if they are solving the country’s economic problems.
This is what happened in the wake of 2008.
The Fed screwed up by keeping rates too low for too long. The banks took advantage of the easy money.Then the big banks came tumbling down – really just a reversion to the mean. Then the Fed bailed out the banks and in the process expanded its power.
The Fed failed. The manipulation of interest rates failed. The manipulation of the market mechanism failed. But because people (especially Congress) think the bankers at the Federal Reserve have some God-like insight into the world of high finance, they hand over more of the economy to the Fed in the wake of each Fed induced crisis.
It’s as if America has fallen into a Stockholm Syndrome induced trance. The Fed has captured the economy and after 100 years the general public (and Washington) now look to its captor for economic answers. We know nothing else. Won’t the world end if we take off the chains the FOMC has told us protect us? What if we decided to be free?
Nope, nope, too scary to contemplate. The wizards at the Fed will take care of things.
The so-called wizards, are just men and women. They are prone to mistakes (obviously.) But because the Fed has such massive power when these men and women made of flesh and blood mess up, they mess up the whole world. No political entity should ever be able to do this.
The Fed is far too powerful. It’s time to stop identifying with our captors and to put the bank in its place, which is to say in the dustbin of history.
“The powers of financial capitalism had (a) far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the systems was to be the Bank for International Settlements in Basel, Switzerland; a private bank owned and controlled by the world’s central banks which were themselves private corporations. Each central bank… sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world.” - Carroll Quigley, member of the Council on Foreign Relations
If one wishes to truly understand the actions behind private Federal Reserve policy, one must come to terms with a fundamental reality – everything the Fed does it does for a reason, and the most apparent reasons are not always the primary reasons. If you think that the Fed simply acts on impulsive stupidity or hubris, then you haven’t a clue what is going on. If you think the Fed only does what it does in order to hide the numerous negative aspects of our current economy, then you only know half the story. If you think the Fed does not have a plan, then you are sorely mistaken…
Central Bankers and their political proponents espouse a globalist ideology, meaning, they are internationalists in their orientation and motivations. They do not have loyalties to any particular country. They do not take an oath to any particular constitution. They do not have empathy for any particular culture or social experiment. They have their own subculture, with their own “values”, and their own social hierarchy. They are a kind of “tribe” or “sect”; a cult,if you will, that views itself as superior to all others. This means that when the central bankers that run the Fed act, they only act with the intention to support and promote globalization, not the best interests of America and Americans.
The process of globalization REQUIRES the dissolution of the U.S. economy as it exists today. Period. There is no way around it. America can no longer remain a superpower in the face of what globalists call “harmonization”. The dollar can no longer maintain its petro-currency status or its world reserve status if total centralization under a new global currency is to be achieved. Globalists believe that America must be sacrificed on the altar of “progress”, and diminished into a mere enclave, a feudal colony of a greater global system. The globalists at the Fed are no different.
Once this driving philosophy is understood, the final conclusion is obvious – the Fed exists to destroy the U.S. financial system and the U.S. currency mechanism. That is what they are here for.
This is why the dollar has lost 98% of its value since the Fed was established in 1913. This is why the Fed deliberately engineered the derivatives bubble crisis through the implementation of artificially low interest rates. This is why their response to the crisis was to create yet another massive bubble in stocks and bonds through QE stimulus. This is why the Fed is cutting stimulus today.
How does the taper play into the long running program of dollar destruction and globalization? Let’s take a look…
The Multifaceted Taper Strategy
In my article ‘Is The Fed Ready To Cut America’s Fiat Life Support’, and my article ‘Expect Devastating Global Economic Changes In 2014′, I predicted that a Fed taper was highly likely. Central banks almost always implant policy shift rumors into the mainstream media a few months before they implement them. They did this for TARP, for QE1, QE2, QE3, and the Taper. In fact, the Fed spent the better part of the past quarter conditioning investors to the idea of stimulus cuts, so I was not at all surprised when they followed through.
The Fed has, of course, now announced a $10 billion QE reduction just in time for Christmas and the 100th anniversary of the privately run institution. In the past, I have pointed out the tendency of central banks to enforce detrimental policy changes while the government, the economy and/or the bank itself is in the midst of a major transition. The Fed’s taper announcement comes just in time for the end of Ben Bernanke’s term as chairman, and the expected nomination of Janet Yellen.
This is done, I believe, because it provides an opportunity to divert blame for a crisis event they know is on the horizon. If attention is ever focused on the Fed specifically for a market downturn or bond disaster triggered by the ever present dollar bubble, Yellen can simply blame the QE policies of Bernanke (who will be long gone), while promising that her “new” policies will surely repair the damage. This placates the public and buys the central bankers time to do even MORE damage.
The taper itself is not just a “head fake”, however. It is a far more complex action. Tapering provides a method of psychologically distancing the Federal Reserve from the consequences of market movements. The banksters are essentially proclaiming to the public that their work is done, they have saved the economy, and now they are moving on, be it only $10 billion at a time. Whatever happens from here on is “not their fault”.
Most alternative analysts expected no taper of QE, and for good reason. While the mainstream touts the propaganda of economic recovery, independent financial experts understand that little to nothing was actually accomplished by the bailouts. Virtually no stimulus was absorbed in a localized way by mainstreet business. Real unemployment counting U-6 measurements still stands at around 20%. Real estate markets and home prices have a received a small boost, which at first glance appears positive until one examines who is actually buying; namely big banks and international investment firms snapping up properties only to reissue them on the market as rentals:
U.S. holiday retail sales and annual retail sales have been the weakest since 2009:
The only thing that QE ultimately accomplished was a spectacular rise in stocks through direct manipulation, which Fed agents like Alan Greenspan and Richard Fisher now openly admit to. The problem is, while gamblers in equities proudly boast about the Fed induced bull run in the Dow and how much money they have made, they remain oblivious to the underlying cost of the charade. Market investors have been enriched, yes, but little do they know that stock legitimacy is about to be sacrificed.
The price to earnings ratio of stocks (the market value of stocks versus what they SHOULD be valued according to the actual earnings of the companies listed) in the S&P 500 today stands at around 15, which is the highest it has been since before the 2008 market crash. Mainstream economists attempt to dismiss the issue by using a 15 year average while claiming that the P/E ratio in 2013 is mild compared to the tech bubble of the late 90′s. What they don’t seem to grasp is that the market of the past four to five years is an entirely different animal compared to 15 years ago.
Stocks in general have received considerable support through purchases by Fed bolstered banks and the Fed itself, creating an atmosphere of artificial demand for equities using QE fiat injections. Though no full audit of the bailouts exists (TARP is the only measure audited so far), it is projected that the banking sector alone has garnered tens of trillions in Fed fiat, which they have used to bolster their otherwise debt ridden holdings. It is only logical to expect that this capital tsunami has been used by numerous companies as a way to present false earnings.Goldman Sachs, JP Morgan, and Morgan Stanley all reported substantial profits for 2009 while at the same time reporting massive liabilities caused by the derivatives crash so that they could collect on the bailout bonanza.
So which one is it? Are companies making profits, or are they wallowing in insurmountable debt while presenting government stimulus as a form of profit?
What the Fed and corporate banks have done is create a market in which neither earnings, nor stock values can be trusted. The fact that the P/E ratio is higher than it has been since 2008 despite this manipulation should concern anyone with any sense.
Worst of all, the Fed’s monetization of U.S. Treasury debt has only expanded while foreign investment in long term debt has contracted. With our official national debt growing by at least $1 trillion per year, our country cannot continue to function without an ever increasing amount of foreign investment, or, Federal Reserve printing. The Fed cannot make cuts to QE if our system is to survive (if you want to call it survival), the Fed must expand QE forever, or at least until the dollar implodes due to hyperinflation.
So then, why has the taper been introduced at all? No one wants it. The government shouldn’t want it. Investors certainly don’t want it. Our economy is utterly dependent on the opposite. What purpose does it serve?
The assumption has always been that the Fed wants to keep the system afloat. I submit that things have changed. I submit that the Fed no longer wishes to prop up our fiscal structure, or at least, no longer wishes to be seen as propping it up. I submit that the Fed is not pursuing dollar destruction through standard hyperinflation, but rather, they are preparing the U.S. for default, which also will result in currency implosion.
The Taper Parallels
“It must not be felt that the heads of the world’s chief central banks were themselves substantive powers in world finance. They were not. Rather they were the technicians and agents of the dominant investment bankers of their own countries, who had raised them up, and who were perfectly capable of throwing them down. The substantive financial powers of the world were in the hands of these investment bankers who remained largely behind the scenes in their own unincorporated private banks. These formed a system of international cooperation and national dominance which was more private, more powerful, and more secret than that of their agents in the central banks. “ - Carroll Quigley, Tragedy And Hope
Initial shock over the taper scenario has not sunk into the markets yet (as Zero Hedge points out, the last time a major central bank cut stimulus measures to a dependent country, stocks rallied, then crashed within months). Few people see much difference between $75 billion per month and $85 billion per month, but the size of the cuts is not really the issue. Rather, it is the Fed’s act of fading into the background that should concern us.
The taper announcement parallels perfectly with the accelerating debate over the U.S. debt ceiling, and I do not think this is at all a coincidence. Tapering seems inconceivable to many, but for the Fed it makes perfect sense if the goal of the globalists is to generate a default scenario while diverting blame. I believe that Americans are being prepared psychologically for just such an event. Already, the White House is warning that government funding will essentially disappear by the end of February:
The expectation fostered by the mainstream media is that a debt fight similar to the October theater will not happen again. I agree. I believe the next debate will be much worse. The vast majority will assume that the “can” will be kicked down the road again, and they may be right, but given the Fed’s behavior, and given that they have begun to taper despite what appears logical, many people may be in for a shock when our government also suddenly decides one day soon to buck assumptions and default rather than prolong the pain.
The full spectrum failure of Obamacare only adds excuse and incentive. There is no longer a legislative centerpiece rationale for further spending. Obama’s approval rating is at historic lows for any president. The stage has been set for the most epic of fake political battles.
The Left and Right leadership, at the top of the pyramid, are nothing more than flunkies for the global elite. If globalists have decided that it is time to apply the final death blows to the dollar, default would be the quickest and most efficient way, and political puppetry can easily make it happen. The calamity would be blamed on “partisan bickering” and “government gridlock”, or even the inefficiency of “democracy”. The Fed, with its taper in place and its fake recovery established, would be presented as the only “sane” institution at America’s disposal.
Perhaps at this point even more pervasive QE programs would recommence, perhaps not. At bottom, though, the taper is not a peripheral issue. It is an action at the center of a much more elaborate process, an action that seems to have been undertaken in preparation for a larger event. The next year is shaping up to be the most chaotic since the debt crisis began in 2008, and as the situation progresses, the subtleties of the Federal Reserve and the international banks that back it must not go unnoticed, or in the end, unpunished.
Source: Brandon Smith | Alt-Market