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Western Secularism vs. Russian Christian Revival

April 8, 2014 by · Leave a Comment 

When defending Western Civilization, some confuse that secular humanism, practiced as the current dominate popular culture, represents that lineage. Nothing could be farther from the truth. The decadence and decline in the West is undeniable. Yet the heritage upon which European civilization is based, owes a profound debt of gratitude to the societies that developed out of the brute force of empire and adopted principles of natural law and individual dignity. A direct correlation to the gospel of Christ becomes the centerpiece of this glorious tradition of universal brotherhood, that keeps man’s inhumanity to man in check.

The well-documented failures of institutions and regimes would have been far worse if left to the devices of pagan appetites or atheist’s hubris. However, the memory of the eternal struggle is short lived in the minds of most people. Confusion reigns because of a lack of knowledge, perspective and especially will, to admit that the New World Order is the invention of satanic factions that lust for control of the entire planet and beyond.

Therefore, the extraordinary essay by Pat Buchanan, Putin vs. Cultural Marxism: Whose Side Is God on Now?, is a required penance for all those who have sinned.

“In his Kremlin defense of Russia’s annexation of Crimea, Russia is a Christian country, Putin was saying.This speech recalls last December’s address where the former KGB chief spoke of Russia as standing against a decadent West:

“Many Euro-Atlantic countries have moved away from their roots, including Christian values. Policies are being pursued that place on the same level a multi-child family and a same-sex partnership, a faith in God and a belief in Satan. This is the path to degradation.”

With Marxism-Leninism a dead faith, Putin is saying the new ideological struggle is between a debauched West led by the United States and a traditionalist world Russia would be proud to lead.”

Before dismissing Putin as just a KGB thug, read Vladimir Putin Nemesis of the New World Order. Then do your own research on Marx and Lenin’s clan of Khazar Bolsheviks. Finally, transcend the issue just about the motives of Putin and focus on the Christian roots of the Russian population.

The Orthodox Revival in Russia by Fr. Seraphim Rose cites the experiences and significance of Alexander Solzhenitsyn and Father Dimitry Dudko.Solzhenitsyn spoke of Gulag—a secular term; Fr. Dimitry speaks of Golgotha—the Christian understanding of the Soviet experience. The central part of Fr. Dimitry’s—and contemporary Russia’s—message to us is that all the sufferings inflicted by atheism have a meaning—we can find Christ in them… Here are a few passages of Fr. Dimitry’s teaching:

“In our land has occurred Golgotha; the torments of all the martyrs begin gradually to cleanse the air… The present crucifixion of Christ in Russia, the persecutions and mockings only lead to the resurrection of faith in men… This gives us strength, firmness, makes us better than we are now… Let us imagine the state of our martyrs. Did the thought of sinning occur to them at this moment? No matter what kind of sinners they may have been in this minute they become saints… And those who suffer for those condemned to death also become better. How many martyrs there have been in Russia—and therefore, how many holy feelings! Will these holy feelings really give no fruit? And perhaps we live and will live only by the feelings of the holy martyrs, being supported by them… In our country now is Golgotha. Christ is crucified. Golgotha is not merely sufferings, but such sufferings as lead to resurrection and enlighten men… Our time can be compared only with the first three centuries of Christianity, and perhaps then it was even easier; then they did not yet know all the refinements of subtle torture… If one compares the religious state here and in the West, the balance is on our side. Why? Because here we have Golgotha, and there they don’t. Does an abundance of material goods give a religious rebirth? … Here we have nothing, but if people believe they are ready to die for their faith.”

Fr. Rose provides his assessment:

“His truthfulness and fiery faith have made many enemies—sadly enough, even among Orthodox Christians. Some have found him too emotional, too apocalyptic, too messianic—and it is true that such a fiery, urgent, Orthodox preaching hasn’t been heard in Russia and probably the whole Orthodox world since the days of St. John of Kronstadt; many Orthodox people have become self-satisfied with their “correct and proper” Orthodoxy and are somehow offended when Orthodoxy is preached and communicated so warmly to everyone who will listen.”

Can you just imagine such a discussion in the western media or even among Dispensationalist Christians, who are preoccupied in taking up the sword to champion Zionism? Any comparison between the West and Mother Russia would be incomplete without the insight of the audacious Brother Nathanael Kapner, Putin’s Purge Of The Rothschild Money Changers.In a televised Christmas message on January 7 2008 Putin said:

“The Russian Orthodox Church contributes to the promotion of moral values in society. One should not completely draw a line between the culture and the church. Of course by law in our country the church is separate from the state. But in the soul and the history of our people it’s all together. It always has been and always will be.” — Here.

Brother Nathanael leaves nothing unsaid in PUTIN VS JEWS OF THE NEW WORLD ORDER.

“By 2006 Putin had paid off Russia’s debt to the Rothschilds. Russia’s financial dependence on the Jewish financiers was now over. Putin could then establish what became his Russian Unity Party’s 2007 campaign slogan: Putin’s Plan Means Victory For Russia! This slogan continues to make the New World Order Jews very nervous…Here.”

While these sentiments are several years old, make no mistake about it, they are even truer today, with the efforts of the BRICS Development Bank to replace the IMF.

For a more current description, look to Pastor Scott Lively in Report from Moscow, and a summary of a reversal of roles, read on.

“Russia is today experiencing a Christian revival and is decidedly NOT communist. Some 30,000 churches have been built in the last year, and the ones in Moscow are reportedly overflowing with worshippers on Sundays. Most of the church is Orthodox, which is steeped in tradition, but at the same time relevant to the modern society.”

“How incredibly ironic it is that Russia is now our best hope for stopping the conquest of the world by the “progressives.” On Father Dimitri’s television show, I made the point that the Americans and the Soviets both won and both lost the Cold War. The Americans broke the Soviet system through economic strategies and tactics. But before they collapsed, the Soviets poisoned the United States with Cultural Marxism, promoting moral degeneracy and family breakdown through so-called “progressive” ideology. Today, post-Soviet Russia is re-emerging as a Christian nation, while the United States is becoming a “Gay Soviet Union.” What a strange turn of events.”

 

Echoing this conclusion is the report In Russia, a religious revival brings new life to Orthodox media. “After 70 years of state-imposed atheism and 20 years that have run the gamut from glasnost to post-Soviet chaos to a revival of Russian pride, Russians have increasingly embraced their Orthodox roots.” The video Christianity Grows in Russia & Declines in the West is to the point.The Latin Papacy has lost its spiritual way often over the millenniums and the Scofield Christian-Zionist apostate bible thumpers betray the Gospel of Christ with their devotion to the Talmud perversion of the Old Testament. Both need to seek repentance. Once the enemy of Christianity, when Russia was Rothschild’s USSR, today a revival of Christianity has started.

Western Secularism, which encapsulates the immoral ethos that underpins the globalist economic model, based upon a rejection of authentic Christian teaching, is the downfall of humanity.

If Russia can salvage their society from atheist communism, surely the West has the ability to humble themselves and repent for their depraved chutzpah and wicked ways. The Totalitarian Collectivism that has destroyed the Christian culture on both sides of the Atlantic must return to their traditional roots.

Michael Hoffman on ‘Usury in Christendom’ is essential, ‘…freedom from interest on money, is essentially the battle for freedom from the Money Power’. The West has become the “Money Changers”, because the temple has subverted commerce by heretical destruction of faith and separation from God. By destroying traditional Christian religious belief, the secular body is defenseless. Such a message is radical to most, because it is reactionary to the spiritual non-believer.

Former Russian President Dmitry Medvedev has spoken of the “fruitfulness of cooperation between the Russian Orthodox Church and government and public institutions and called the revival of Orthodox Christianity in Russian in the past two decades a miracle.” The West needs a spiritual revival of its own conception. If the Russia Bear can be tamed, what prevents the American eagle from souring once again?


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

Sartre is a regular columnist for Veracity Voice

Institutionalized Tyranny

March 28, 2014 by · 2 Comments 

What happens when an institution becomes more important than the cause for which the institution was formed? How long should people who believe in the cause remain loyal to such an institution? And at what point does loyalty to such an institution comprise an abandonment of the cause itself?

I’m afraid the majority of Americans have been institutionalized in a manner not unlike the way prisoners are institutionalized after a long period of confinement. After a point, a prisoner is so conditioned to accepting the circumstances of his confinement that, should he be released from confinement, he truly would be unable to cope. Such seems to be the mentality of a majority of us today.

Christians have been institutionalized. The reason and purpose of the church or Christian organization is no longer relevant. Generations have grown up reciting the same liturgies, regurgitating the same prayers, and rehearsing the same programs until the reason for it all doesn’t even matter. But take the institution away from them, and they would not be able to cope.

The Pharisees despised the Lord Jesus because He challenged the religious institutions that had come to govern people’s lives. I am convinced if Jesus came to America today, He would be just as despised by the vast majority of our religious leaders as He was by the Pharisees.

The Church that Jesus built in the Book of Acts owned no buildings, was indebted to no lenders, took no tax benefits from the civil government, had no denominational hierarchy, and identified itself with no ecclesiastical brand. And the Church was just as persecuted by the religious establishment as Christ was.

One of the reasons one may know that the modern church is so unlike Christ and the apostles is by the persecution that it never experiences. Just as the Pharisees were bosom buddies with the Roman Empire’s governing elite, so are our religious leaders today. Caesar was very generous in sharing the fruit of his tyrannically-extracted bounty with his allies in the Jewish Sanhedrin. And they were happy to return the favor by insisting that the Hebrew people submit to Caesar’s harsh rule over their lives.

The Pharisees also enjoyed a cozy relationship with the moneychangers. The moneychangers were descended from a long line of corrupt banking interests that dated all the way back to the Edomites. We are not talking about your friendly local banker here. These were highly organized, well-positioned money-manipulators. Jesus was so incensed with their manipulation and theft within in the Temple that he used physical violence to remove them from the property. He is recorded as doing this twice in the Gospel narratives. Note that after the second time in which it is recorded that He drove out the moneychangers (with a whip, no less), the Pharisees soon had Jesus crucified. There is no question that one of the reasons Pilate ordered Jesus to be scourged with a whip was in direct retaliation for the manner in which Jesus whipped the moneychangers. Remember, the moneychangers were from a very well-ensconced, elitist national (and even international) organization.

And lest you think all of this is irrelevant to today, the moneychangers are still very much with us. The Rothschilds, Rockefellers, and other members of the international banking elite, are the direct descendants of the moneychangers of Jesus’ day. And if you ever have an opportunity to ask one of them about it, they will proudly admit it.

Yes, the Pharisees institutionalized religion. This accomplished two things: 1) it helped enslave the people, 2) it helped make them rich. The institutionalized church is accomplishing much the same things today.

The establishment church is doing as much to enslave people as any other institution in the world. Our political institutions and educational institutions have nothing on the church for making good little subjects and serfs to the all-powerful state. And if you don’t think that a host of church leaders are not reaping the spoils from assisting our taskmasters, you’re not paying attention.

Many, if not most, of these big-name TV evangelists have as many houses and yachts and Swiss bank accounts as any big-name Hollywood actor or politician. In some cases, more. Most of these big-church pastors are bathing in luxury. Many of them take the kinds of vacations that only CEOs of the biggest corporations or presidents could afford. Do you really think that the IRS rules and regulations governing these non-profit corporations, called churches, really bother these church leaders? Get real!

No wonder all of these “successful” preachers are constantly teaching their congregations to always submit to the government. No wonder they have no interest in abandoning their 501c3 tax-exempt status. They are in the exact same position as were the Pharisees of old. And they are just as effective in helping to enslave people today as were the Pharisees.

The institution of the church–along with its programs, formalities, buildings, rituals, etc.,–has become more important than the purpose for which the church was created. Instead of preaching the liberating message of the Cross, which frees men from the fetters of sin–and that includes sinful political and financial fetters–the church is preaching a message of subjugation and enslavement. It is teaching people to submit to all kinds of oppression, including religious oppression.

Some of the most oppressed and subjugated people in the world are religious people. There are churches and Christian colleges that are every bit as tyrannical as anything coming out of East-bloc or Muslim countries. About the only thing missing is physical torture and execution. Spiritually, however, the oppression is the same.

How could real men who love the liberty they have in Christ allow themselves–and especially their wives–to be told how to dress, how to wear their hair, what kind of music to listen to, what kind of vacations to take, what restaurants they may or may not eat at, what forms of entertainment they may or may not participate in, etc., etc., ad infinitum?

I tell you the truth: many Christians in America are already slaves. To talk to them about freedom is a complete waste of time. The chains of tyranny are already clamped around their hearts. Why should it matter to them if chains are clamped around their necks? When they talk about “defending the faith,” they are talking about defending the institution. They are slaves to the institution. And the same is true for many unchurched Americans.

What is more important: liberty, or the government that is supposed to secure liberty? To a sizeable number of Americans today, it is more important to preserve the institution than the freedoms that the institution was created to protect.

Our Declaration of Independence states, “That whenever any Form of Government becomes destructive of these ends [the God-given rights of life, liberty, etc.], it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.”

Did you see that: “any form of government”? ANY FORM. The form of government is only as good as its ability to secure liberty.

I hear a lot of politicians and media personalities talking about “American exceptionalism.” This is a potentially dangerous mindset. If one means that America is exceptional in our history and the manner in which our Constitution and Bill of Rights were established to protect liberty, well and good. But if it means that America has carte-blanche to do anything it wants–no matter how unconstitutional or tyrannical–because it is “exceptional,” it is a bunch of hooey.

What difference does it make if we have a 50-State Union or not? There is a bill in the California legislature that would divide that State into six states. Five counties in Western Maryland are trying to secede from Baltimore. Ten northern counties in Colorado are trying to secede from Denver. If a State refuses to secure the liberties of the people of that State, they have every right under God to separate. The State is not nearly as important as the liberties of the people within the State.

The spirit of secession is actually growing like wildfire all over the world. In recent history, Serbia, Slovenia, Croatia, Bosnia, Montenegro, Macedonia, and Kosovo all separated from Yugoslavia. Transnistria broke free from Moldova. Abkhazia and South Ossetia fought free from Georgia. The Slovaks seceded from Czechoslovakia. And now Crimea is separating from Ukraine.

To be sure, not every country that secedes from another country is motivated purely by the love of liberty. But for those of us in America, the issue that has propelled the desire to separate from one country or one State has always been liberty. It was the love of liberty that created the United States and that created the free and independent states of Maine, Vermont, Kentucky, and West Virginia–all of which seceded from existing U.S. states.

Furthermore, what difference does it make if Washington, D.C., is our federal capital, or, if say, Helena, Montana, would become the federal capital of a mountain state confederation of Montana, Idaho, Wyoming, Northern Colorado, eastern Washington and Oregon, the Dakotas, Alberta and British Columbia, Canada, and Alaska? Or if Austin was the federal capital of an independent Republic of Texas? Preserving some sort of political union (especially if it is a forced and coerced union) is not nearly as important as preserving liberty.

Again, it is not the political institution that is important. What is important is the liberty that the political institution is supposed to secure.

Many great minds in this country are already philosophizing over the possibility that secession is an idea whose time has come–again. A few years ago, Walter Williams wrote, “Like a marriage that has gone bad, I believe there are enough irreconcilable differences between those who want to control and those want to be left alone that divorce is the only peaceable alternative. Just as in a marriage, where vows are broken, our human rights protections guaranteed by the U.S. Constitution have been grossly violated by a government instituted to protect them. Americans who are responsible for and support constitutional abrogation have no intention of mending their ways.

“Americans who wish to live free have two options: We can resist, fight and risk bloodshed to force America’s tyrants to respect our liberties and human rights, or we can seek a peaceful resolution of our irreconcilable differences by separating. That can be done by peopling several states, say Texas and Louisiana, control their legislatures and then issue a unilateral declaration of independence just as the Founders did in 1776. You say, ‘Williams, nobody has to go that far, just get involved in the political process and vote for the right person.’ That’s nonsense. Liberty shouldn’t require a vote. It’s a God-given or natural right.

“Some independence or secessionists movements, such as our 1776 war with England and our 1861 War Between the States, have been violent, but they need not be. In 1905, Norway seceded from Sweden, Panama seceded from Columbia (1903), and West Virginia from Virginia (1863). Nonetheless, violent secession can lead to great friendships. England is probably our greatest ally and we have fought three major wars together. There is no reason why Texiana (Texas and Louisiana) couldn’t peaceably secede, be an ally, and have strong economic ties with United States.

“The bottom line question for all of us is should we part company or continue trying to forcibly impose our wills on one another?”

See William’s column here:

It’s Time To Part Company

Hear! Hear!

In the eyes of God, marriage is the most sacred of all unions. It is far more sacred than any political union. If our Creator has authorized the separation of a husband and wife under certain circumstances in which one party violated the sacred terms of the holy contract (and He has), who among us has the audacity to say that political unions may not be abandoned when government commits political adultery by forsaking its oath to the people?

Again, are we more interested in preserving an institution or the liberty that the institution is supposed to secure?

As an institution, the Church at large is apostate. Yet, millions of Christians continue to prop up an institution that has abandoned the purpose for which it was created. They are more interested in preserving the forms and liturgies and tapestries and buildings of the institution. And, all the while, they are being spiritually enslaved by the very institution they are helping to prop up.

And as an institution, the U.S. federal government is apostate. Yet, millions of citizens continue to make excuses for it, justify it, and condone it. They are more interested in preserving the agencies and entities and power of the institution. Yet, all the while, they are being enslaved by the very institution they are helping to prop up.

What happens when an institution becomes more important than the cause for which the institution was formed? When the institution is civil government and the cause is liberty, tyranny is what happens.


Chuck Baldwin is a regular columnist for Veracity Voice

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

Follow-Up On Our Corrupt U.S. Congress

March 28, 2014 by · Leave a Comment 

At this time, our U.S. Congress rates a nine percent approval rating. It means nine percent of the American public registers “brain-dead.”

Those 535 members over the past 40 years deformed our nation from the largest creditor country in the world to the largest debtor nation in the world. We enjoyed less than $1 trillion in national debt to our current $18 trillion debt. That same Congress forced our young men and women into four hopeless, futile and asinine wars that killed tens of thousands of them and sent millions home with Post Traumatic Stress Disorder, drugs and alcoholism. Not to mention dismembered limbs.

That Congress danced to the Military Industrial Complex’s tune of contrived wars benefiting the bankers and corporations that outfitted and fed those young soldiers. Those executives made millions while our kids came home in coffins or missing arms and legs and their minds.

That same Congress turned our nation from a rich manufacturing country into a multi-trillion dollar deficit nation where we import everything we once manufactured, to today where we buy everything from China to make their citizens rich. So rich, in fact, that we owe them $1.4 trillion in trade deficits. Ironically, China now owns many U.S. corporations and buys land for its own beachhead here in America, not to mention Vancouver, BC, Canada where it displaced most of the Canadians in the past 30 years. Chinese now dominates the language in once-English speaking Vancouver, BC.

That bunch of hot shot Congressional Critters took our vibrant economy and turned it into 15 million unemployed and 48 million food stamp users. Those same reps allowed 20 million illegal alien migrants to come into our country and work for crooked employers like Chipotle’s, Marriot Hotels, Holiday Inns, McDonald’s, Hormel, Tyson Chicken, Swift, painting, landscape and construction firms at minimum wages. They and the presidents that headed this country refused to enforce our laws. That’s why you MUST press “1” for Spanish and “2” for English.

Today, we face enormous consequences from their actions. Yet, U.S. voters return 96 percent of incumbents—such as Boxer, Feinstein, Hatch, McCain, Kyle, Schumer, Lindsey Graham, Levin, Udall, Bennet, Rangel, Jackson, DeGette and hundreds of other failed Congressional Critters.

So are they stupid or are they corrupt?

One reader named Brad said, “They are not necessarily stupid. It’s just that most of these psychopaths are bought. The wealthy buy their services and they get remuneration by jobs when they leave “service”, by getting to indulge in insider trading (again – was cut out, but quietly reinstated) etc.

“Just allowing insider trading makes EVERY decision with any economic consequence suspect, as they will have a vested personal income interest in helping corporations increase profits by any means. Thus the repeal of clean air and water regulations. They allow oil fracking to use 2 million gallons of water per well, pour over 530 toxic chemicals into the aquifer to poison and ruin it, and remain exempt from EPA oversight.

“Some may not be bought. Some not all the time. The sad fact is that enough ARE compromised that essentially the damages get done consistently.

“Most in office are so stupid (such as California’s Congresswoman Maxine Waters, who is also corrupt in the league with former Congressman Tom Delay of Texas) that they accept stupid, flawed societal paradigms like “what’s good for business is good for America” and we can see how well that’s working out.

“The parasitic wealthy class is stealing record profits in some of the worst working economy in history – why? Because they have the true entitlement society in which they get tax breaks, tax exemptions, no bid contracts, inflated government costs, subsidizations and most likely a ton of things we never hear about. Simply by allowing industry execs into the alphabet organizations like FDA, USDA, etc., allows them to regulate competition to a ridiculously low level, and to leverage their income, influence, and profits at everyone else’s expense.”

The greatest flaw facing all U.S. citizens remains “career politicians” that create a “good-old boy” network of cronyism and corruption.

If we citizens fail to press for a maximum of 12-year term limits, we face a downward spiral into poverty and failed government not seen since the 1930s. The majority of Congress remains corrupt. That’s why things in the USA don’t get better, but continue on the downward path.

Remember: power corrupts; long-term power corrupts absolutely.


Frosty Wooldridge has bicycled across six continents – from the Arctic to the South Pole – as well as six times across the USA, coast to coast and border to border. In 2005, he bicycled from the Arctic Circle, Norway to Athens, Greece.

He presents “The Coming Population Crisis in America: and what you can do about it” to civic clubs, church groups, high schools and colleges. He works to bring about sensible world population balance at his website: www.frostywooldridge.com

Frosty Wooldridge is a regular columnist for Veracity Voice

The Economic Scam of the Century

March 27, 2014 by · Leave a Comment 

The leaders of the U.S. Senate Banking Committee,  Sen. Tim Johnson (D., S.D.) and Sen. Mike Crapo (R., Idaho),  released a draft bill on Sunday that would provide explicit government guarantees on mortgage-backed securities (MBS) generated by privately-owned banks and financial institutions. The gigantic giveaway to Wall Street would put US taxpayers on the hook for 90 percent of the losses on toxic MBS the likes of which crashed the financial system in 2008 plunging the economy into the deepest slump since the Great Depression. Proponents of the bill say that new rules by the Consumer Financial Protection Bureau (CFPB) –which set standards for a “qualified mortgage” (QM)– assure that borrowers will be able to repay their loans thus reducing the chances of a similar meltdown in the future. However, those QE rules were largely shaped by lobbyists and attorneys from the banking industry who eviscerated strict underwriting requirements– like high FICO scores and 20 percent down payments– in order to lend freely to borrowers who may be less able to repay their loans.  Additionally, a particularly lethal clause has been inserted into the bill that would provide blanket coverage for all MBS  (whether they met the CFPB’s QE standard or not) in the event of another financial crisis. Here’s the paragraph:

“Sec.305. Authority to protect taxpayers in unusual and exigent market conditions….

If the Corporation, the Chairman of the Federal Reserve Board of Governors and the Secretary of the Treasury, in consultation with the Secretary of Housing and Urban Development, determine that unusual and exigent circumstances threaten mortgage credit availability within the U.S. housing market, FMIC may provide insurance on covered securities that do not meet the requirements under section 302 including those for first loss position of private market holders.” (“Freddie And Fannie Reform – The Monster Has Arrived”, Zero Hedge)

In other words, if the bill passes,  US taxpayers will be responsible for any and all bailouts deemed necessary by the regulators mentioned above.  And, since all of those regulators are in Wall Street’s hip-pocket, there’s no question what they’ll do when the time comes. They’ll bailout they’re fatcat buddies and dump the losses on John Q. Public.

If you can’t believe what you are reading or if you think that the system is so thoroughly corrupt it can’t be fixed; you’re not alone. This latest outrage just confirms that the Congress, the executive and all the chief regulators are mere marionettes performing whatever task is asked of them by their Wall Street paymasters.

The stated goal of the Johnson-Crapo bill is to “overhaul” mortgage giants Fannie Mae and Freddie Mac so that “private capital can play the central role in home finance.” (That’s how Barack Obama summed it up.) Of course, that’s not really the purpose at all. The real objective is to hand over the profit-generating mechanism to the private banks (Fannie and Freddie have been raking in the dough for the last three years) while the red ink is passed on to the public. That’s what’s really going on.

According to the Wall Street Journal,  the bill will

“construct an elaborate new platform by which a number of private-sector entities, together with a privately held but federally regulated utility, would replace key roles long played by Fannie and Freddie….”

“The legislation replaces the mortgage-finance giants with a new system in which the government would continue to play a potentially significant role insuring U.S. home loans.” (“Plan for Mortgage Giants Takes Shape”, Wall Street Journal) 

“Significant role”? What significant role? (Here’s where it gets interesting.)

The WSJ:

“The Senate bill would repurpose the firms’ existing regulator as a new “Federal Mortgage Insurance Corp.” and charge the agency with approving new firms to pool loans into securities. Those firms could then purchase federal insurance to guarantee payments to investors in those bonds. The FMIC would insure mortgage bonds much the way the Federal Deposit Insurance Corp. provides bank-deposit insurance.”

Unbelievable. So they want to turn F and F into an insurance company that backs up the garbage mortgages created by the same banks that just ripped us all off for trillions of dollars on the same freaking swindle?

You can’t be serious?

More from the WSJ:  “Mortgage guarantors would be required to maintain a 10% capital buffer against losses and to have that capital extinguished before the federal insurance would be triggered.”

10 percent? What the hell difference does 10 percent make; that’s a drop in the bucket.  If the banks are going to issue mortgages to people who can’t repay the debt, then they need to cover the damn losses themselves, otherwise they shouldn’t be in the banking biz to begin with, right?

This is such an outrageous, in-your-face ripoff, it shouldn’t even require a response. These jokers should be laughed out of the senate. All the same,  the bill is moving forward, and President Twoface has thrown his weigh behind it. Is there sort of illicit, under-the-table, villainous activity this man won’t support?

Not when it comes to his big bank buddies, there isn’t. Now check out this clip from an article by economist Dean Baker. Baker refers to the Corker-Warner bill, but the Crapo-Johnson fiasco is roughly the same deal. Here’s Baker:

“The Corker-Warner bill does much more than just eliminate Fannie and Freddie. In their place, it would establish a system whereby private financial institutions could issue mortgage-backed securities (MBS) that carry a government guarantee. In the event that a large number of mortgages in the MBS went bad, the investors would be on the hook for losses up to 10 percent of its value, after that point the government gets the tab.

If you think that sounds like a reasonable system, then you must not have been around during the housing crash and ensuing financial crisis. At the peak of the crisis in 2008-2009 the worst subprime MBS were selling at 30-40 cents on the dollar. This means the government would have been picking up a large tab under the Corker-Warner system, even if investors had been forced to eat a loss equal to 10 percent of the MBS price.

The pre-crisis financial structure gave banks an enormous incentive to package low quality and even fraudulent mortgages into MBS. The system laid out in the Corker-Warner bill would make these incentives even larger. The biggest difference is that now the banks can tell investors that their MBS come with a government guarantee, so that they most they stand to lose is 10 percent of the purchase price.” (“The disastrous idea for privatizing Fannie and Freddie”, Dean Baker, Al Jazeera)

Just ponder that last part for a minute: “The bill would make these incentives even larger.”

Do you really think we should create bigger incentives for these dirtbags to rip us off? Does that make sense to you? Here’s more from Baker:

“The changes in financial regulation are also unlikely to provide much protection. In the immediate wake of the crisis there were demands securitizers keep a substantial stake in the mortgages they put into their pools, to ensure that they had an incentive to only securitize good mortgages. Some reformers were demanding as much as a 20 percent stake in every mortgage.

Over the course of the debate on the Dodd-Frank bill and subsequent rules writing this stake got ever smaller. Instead of being 20 percent, it was decided that securitizers only had to keep a 5 percent stake. And for mortgages meeting certain standards they wouldn’t have to keep any stake at all.

Originally only mortgages in which the homeowner had a down payment of 20 percent or more passed this good mortgage standard. That cutoff got lowered to 10 percent and then was lowered further to 5 percent. Even though mortgages with just 5 percent down are four times as likely to default as mortgages with 20 percent or more down, securitizers will not be required to keep any stake in them when they put them into a MBS.”

Hold on there, Dean. You mean Dodd Frank didn’t ”put things right”?  What the heck? I thought that “tough new regulations” assured us that the banks wouldn’t blow up the system again in five years or so. Was that all baloney?

Yep, sure was. 100% baloney. Once the banks unleashed their army of attorneys and lobbyists on Capital Hill,  new regulations didn’t stand a chance. They turned Dodd Frank into mincemeat and now we’re back to square one.

And don’t expect the ratings agencies to help out either because they’re in the same shape they were before the crash. No changes at all.  They still get paid by the guys who issue the mortgage-backed securities (MBS) which is about the same as if you paid the salary of the guy who grades your midterm exam. Do you think that might cloud his judgment a bit? You’re damn right, it would; just like paying the ratings agencies guarantees you’ll get the rating you want. The whole system sucks.

And as far as the new Consumer Financial Protection Bureau, well, you guessed it. The banks played a role in drafting the new “Qualified Mortgage” standard too, which is really no standard at all, since no self-respecting lender would ever use the same criteria for issuing a loan or mortgage. For example, no banker is going to say, “Heck, Josh, we don’t need your credit scores. We don’t need a down-payment. We’re all friends here, right? So, how much do you need for that mortgage old buddy, $300,000, $400,000, $500,000.  You name it. The sky’s the limit.”

No down payment? No credit scores? And they have the audacity to call this a qualified mortgage?

Qualified for what? Qualified for sticking it to the taxpayers?  The real purpose of the qualified mortgage is to protect the banks from their own shifty deals. That’s what it’s all about. It provides them with “safe harbor” in the event that the borrower defaults. What does that mean?

It means that the government can’t get its money back if the loan blows up.   The qualified mortgage actually protects the banks, not the consumer. That’s why it’s such a farce,  just like Dodd Frank is a farce. Nothing has changed. Nothing. In fact, it’s gotten worse. Now we’re on the hook for whatever losses the banks run up peddling mortgage credit to anyone who can fog a mirror.

We’ll leave the last word for Dean Baker, since he seems like the only guy in America who has figured out what the hell is going on:

“In short, the Corker-Warner plan to privatize Fannie and Freddie is essentially a proposal to reinstitute the structure of incentives that gave us the housing bubble and the financial crisis, but this time with the added fuel of an explicit government guarantee on the subprime MBS. If that doesn’t sound like a great idea to you then you haven’t spent enough time around powerful people in Washington.”

The Johnson-Crapo bill doesn’t have anything to do with “winding down” Fannie and Freddie or “overhauling” the mortgage finance industry. It’s a bald-face ripoff engineered by two chiseling senators who are putting the country at risk to beef up Wall Street’s bottom line.

It’s the scam of the century.


Mike Whitney is a regular columnist for Veracity Voice

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

IMF and EU Capture of Ukraine

March 27, 2014 by · Leave a Comment 

It should be obvious that the recent putsch and regime change in the Ukraine inspired and backed by the U.S. shadow government, benefits the international banksters. For the average EU resident, only further economic displacement and diminished prospects can be expected from any inclusion of Ukraine into the EU dictatorial structure. Not so, for the corporatists who expects expanded opportunities as Consortium News analyzes agricultural and energy companies recent involvement within the Ukraine.While corporatists want to extend their monopolies, the appeal of joining the EU with privileges of travel, relocation and better employment, has a very high price tag. So what is really behind the cover that the Brussels technocrats like to provide for the heavy hand treatment, which the banksters always demand? Look to the methods of the IMF for part of the answer.

Michel Chossudovsky of Global Research, in the detailed essay Regime Change in Ukraine and the IMF’s Bitter “Economic Medicine”, gives a comprehensive account of the handpicked players that are eager to do the bidding of the IMF.

“Shortly after his instatement, the interim (puppet) prime minister Arseny Yatsenyuk casually dismissed the need to negotiate with the IMF. Prior to the conduct of negotiations pertaining to a draft agreement, Yatsenyuk had already called for an unconditional acceptance of the IMF package: “We have no other choice but to accept the IMF offer”.

He explains the methods of the standard game plan that the IMF uses to impoverish the peasants and steal assets and resources.

“While the privatization program ensures the transfer of State assets into the hands of foreign investors, the IMF program also includes provisions geared towards the destabilization of the country’s privately owned business conglomerates. A concurrent “break up” plan entitled “spin-off” as well as a “bankruptcy program” are often implemented with a view to triggering the liquidation, closing down or restructuring of a large number of nationally owned private and public enterprises.”

In addition, the 21th Century Newswire reports that the US Quietly Snatches the Ukraine’s Gold Reserves and corroborated by the same Prof Chossudovsky, it becomes clear that economic conquest is a prime component behind the staged coup.

“According to reports out of Kiev, the US has quietly transfers 33 tons of Ukrainian gold out of the country and back to vaults in the US. Presumably, this sovereign wealth transfer would be counted as partial “collateral” for a fresh round of IMF, US FED, and ECB paper debt that is currently being organized for dumping into the Ukraine’s economic black hole.”

“Later a returned call from a senior official of the former Ministry of Revenue reported that tonight, on the orders of one of the new leaders of Ukraine, the United States had taken custody of all the gold reserves in Ukraine.”

Finally, economist Michael Hudson in Who In Ukraine Will Benefit From An IMF Bailout?,

“The objective of IMF loans is to deindustrialize the economy. It is to force the economy–meaning the government when you say the economy–the government has to pay the IMF loan by privatizing whatever remains in the public domain. The Westerners want to buy the Ukrainian farmland. They want to buy the public utilities. They want to buy the roads. They want to buy the ports. And all of this is going to be sold at a very low price to the Westerners, and the price that the Westerners pay will be turned over to the Ukrainian government, that then will turn it back to the Ukraine. So whatever the West gives Ukraine will immediately be taken back.”

 

Watch the informative video, Who In Ukraine Will Benefit From An IMF Bailout?, for the Real News assessment, that clarifies these developments. Now shift to the recent announcement that the EU Signs Association Agreement With Ukraine for a viewpoint reported by Radio Free Europe.

“This deal covers the most existential and most important issues, mainly security and defense cooperation,” Yatsenyukd said. “This deal will establish a joint decision-making body, which is to facilitate the process of real reforms in my country. And this deal meets the aspirations of millions of Ukrainians that want to be a part of the European Union.”

What exactly can the EU offer by way of defense cooperation? Yes, this is the same central banker stooge, who the Wall Street Journal describes as Washington’s Man Yatsenyuk Setting Ukraine Up For Ruin. Without the United States, the EU is a paper tiger. NATO is not an alliance, but a branch of outposts to deploy American troops. How does this phony agreement between the EU and Ukraine help the economic interests of either party?

Such a display of destitution only makes the illegitimate installed Ukraine government look like the vassal state that it has become. Bob Livingston over at Personal Liberty Digest has it correct, ”The Ukraine situation is a bankster-orchestrated crisis with the short game more money printing and the end game global governance.”The EU governance aspect is the eventual goal, but the immediate economic dislocation that even the talk of sanctions against Russia has, with the trading partners within the EU, surely will experience real pain. These conditions create the perfect storm for the IMF banksters to apply their vile craft.

Now that the Ukraine is reduced to beggar status, the gang of approved corporatist will feast like vultures upon the remains of fire sale assets. Once again the formula imposed upon Ireland, Spain and certainly Greece, will be used to guarantee the billions in EURO credit that will flow into the secret bank accounts of the new junta.

Capturing the Ukraine is more about geopolitical asset thievery than assimilation into the European Union. However, the EU marketed, as a lawful “community of nations” is nothing more than the political front for the money counterfeiters. Fashioning economic distress is the business of the unholy alliance. NATO, the IMF and the EU serve the shyster and shylock central banking system. Ukraine is just the latest victim.


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

Sartre is a regular columnist for Veracity Voice

Economic Suicide

March 25, 2014 by · Leave a Comment 

Abenomics has been great for stock speculators and corporate bigwigs, but for everyone else, not so much. The fact is–despite all the media hype and monetary fireworks–Prime Minister Shinzo Abe’s three-pronged strategy to end 20 years of deflation has been a total bust. But don’t take my word for it, check out this clip from Reuters and see for yourself:

“In the fourth quarter of last year, Japan’s economy grew at an annual rate of just 0.7 percent, revised figures show, slower than the initial estimate of 1.0 percent on weaker business investment and consumption….” (Japan fourth-quarter growth, external balance suffer blow in test for Abenomics, Reuters)

See? Japan’s economy is dead as a doornail. No sign of life at all. What more proof do you need than that?

And Abenomics won’t end deflation either. That’s another fiction. The weaker yen is just going to force working people and retirees on fixed income to reduce their consumption which will intensify the slump. Heck, even the IMF has figured that one out. Take a look at this clip from one of their recent pieces:

“The average Japanese worker has been dipping into his savings to finance consumption growth. But there’s a limit to how far he can do this. The savings rate as a percent of disposable income has declined from around 5 percent a decade ago to close to zero today, leaving little further room for spending from savings….Looking forward, real wages are set to come under even greater pressure this year and next with higher underlying inflation and successive increases in the consumption-tax rate.” (Abenomics—Time for a Push from Higher Wages, IMF-direct)

It sounds to me like the IMF is telling old Shinzo that his plan sucks, doesn’t it?

Whoever thought that dumping trillions of dollars into the financial system would end deflation had a couple screws loose. That’s not how it works. The Fed loaded up on $4 trillion in financial assets and inflation is still hovering at a measly 1 percent. So if the theory doesn’t work in the US, why would it work in Japan?

It won’t. The way to generate inflation is by circulating money in the economy and increasing the velocity. That means full employment and higher wages. That means fiscal stimulus and redistributive taxation. That means fixing the damn economy. But Abe’s not going to do that because it doesn’t jibe with his class war strategy which is what drives the current policy. Now check this out from Roger Arnold at The Street:

“The essential policy tools of Abenomics are massive monetary and fiscal stimulus aimed at forcing the yen lower, which should cause exports to rise and domestic production to increase, leading to increased domestic job production and consumption: the virtuous cycle. In the process, Japan also increased sovereign debt, which must be serviced by the government. The servicing of that debt is supposed to come from an increase in tax receipts to be made available by the increased domestic production and consumption.

But it isn’t working.

The failure of Abenomics to stimulate economic activity and raise tax receipts enough to pay for the stimulus is now causing the government to double back on these programs with a counter-cyclical consumer tax increase of about 3%, which will be implemented in April. In other words, Abenomics is making the real economic and fiscal situations in Japan worse, not better. They are digging a bigger sovereign debt hole and accelerating the trajectory toward insolvency…Investors would be wise to avoid Japan altogether now, and probably permanently.” (Arnold: Abenomics’ Failure Is the Global Canary, The Street)

That’s probably good advice, although I think Japan’s implosion will take much longer than Arnold seems to believe. But that’s beside the point. What matters is the that policy doesn’t work. The economy isn’t growing, personal consumption is weak, the trade deficit, the current account deficit and the national debt are all ballooning at the same time, and the Japanese people are growing more pessimistic. And on top of it all, a 3 percent sales tax is set to kick in at the beginning of April which is going to send the economy stumbling back into recession. (Abe pushed through the tax hike to placate his right-wing constituents even though the risks to the economy were obvious.)

So, it’s all bad, unless you’re high-flying stock trader or a money-grubbing corporate CEO, that is. Then things have never been better. Get a load of this in the Wall Street Journal:

“While Japan Inc. may be whistling a happy tune on the back of robust profit growth and a weaker yen thanks to the pro-business agenda of Prime Minister Shinzo Abe, a key survey released Wednesday shows that consumers aren’t in a similar Abenomics-induced state of rapture.

The Cabinet Office’s monthly Consumer Confidence Index contracted for the third straight month in February to 38.2. That’s the worst reading since Mr. Abe entered office in January 2013 and the lowest since September 2011. Respondents were even more pessimistic than during Mr. Abe’s year-long term as prime minister between September 2006 and September 2007…

Even though recent data showed the basic earnings of workers in the world’s third-largest economy rose for the first time in almost two years in January, respondents in the February survey were less optimistic about their income growth, the value of their assets, and their overall livelihood than they were a month earlier.

The downbeat reading prompted the government to downgrade its assessment, saying it is “on a weak note.” (Japanese Consumer Pessimism Hits New High Under Abe, WSJ)

To say the Japanese are depressed, would be an understatement. Your average Joe is “even more pessimistic” than he was when Abe stepped down in 2007 and the economy was on the brink of rigor mortis. Does that sound like the “Happy Days are here again” blabber you’ve been reading in the media or hearing from liberal pundits like the madcap Dr. Krugman?

Also, according to a Cabinet Office survey that appeared in the Japan Times on Saturday, only 22 percent of respondents “think the economy is headed in the right direction”, while 76 percent are worried about the impact the consumption tax will have on the economy.

How’s that for a ringing endorsement of Abe’s Kamikazenomics? The only people who still believe in Abe’s song and dance are the ivory tower set at Princeton and Yale. Everyone else has thrown in the towel.

Abenomics is a public relations scam designed to shift more payola to voracious stock speculators and their thieving corporate counterparts. It’s a fraud wrapped in a lie. That’s all there is to it. But there are victims, that’s for dang-sure. Just check out this article in Bloomberg and you’ll see what I mean:

“Japanese Prime Minister Shinzo Abe looks set to drive an indicator of economic hardship to a 33-year high by increasing taxes and prices amid stagnant wages. The misery index, which adds the jobless rate to the level of inflation, will climb to 7 percentage points in the three months starting April 1 when Japan raises its sales levy to 8 percent from 5 percent, based on the median estimates of economists in Bloomberg News surveys of unemployment and consumer prices. That would be the highest level for the measure since June 1981 when Japan was emerging out of depression after the oil shocks in the 1970s.

Bank of Japan monetary stimulus designed to spur economic growth and achieve 2 percent inflation has weakened the yen by 6.8 percent in the past 12 months, eroding the value of wages to a record low. Abe, the son of an ex-foreign minister who grew up in a house with servants, is under fire from the opposition party after the cost of living surged to a five-year high.

“Inflation is really tough,” said Kiyoshi Ishigane, a senior strategist at Mitsubishi UFJ Asset Management Co., which oversees more than $77 billion. “Those who speak favorably about inflation might have been born in wealthy families and never experienced the hardship that inflation brought.” (Misery Index Rising to 33-Year High on Abenomics: Japan Credit, Bloomberg)

The Misery Index is peaking and all you hear in the US is a bunch of baloney about glorious Abenomics and the miraculous effect of money printing. What a joke. People are hurting big-time in Japan, and shifty Shinzo is only adding to their pain with his monetary Hara-kiri. It’s madness. Wages dropped for 19 months in a row before they got a “one-off” bump-up last month of 0.1 percent, which is a big nothingburger. The overall trend is down, down, down. On top of that, roughly 35 percent of Japan’s workforce is part-time employment; no pension, no bennies, no job security, no nothing. Things slow down, and you get booted down the stairwell with not as much as a “Goodbye, Charlie!” They probably don’t even bother with the perfunctory pink slip. Just grab your lunchbox, and “out you go.”

So how does Abe figure he’s going to generate inflation when workers are flat on their backs and don’t have enough scratch to buy the widgets that Japan Inc produces?

The whole thing is a non starter, which is why I think this “fighting deflation” trope is a big freaking smokescreen to hide what’s really going on, which is a massive transfer of wealth to the investor class via asset inflation. That’s what’s really happening, right? Abenomics is just a way to produce fat returns during extended periods of slow growth and deepening stagnation. The big boys figured out how to overcome the very conditions that they created with their unbounded avarice. I guess they figure that, just because everyone else has to suffer through a goddamn Depression, doesn’t mean they have to too.

You got to hand it to these guys, they think of everything.


Mike Whitney is a regular columnist for Veracity Voice

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

1914 And 2014: Insanity Then And Now

March 24, 2014 by · Leave a Comment 

We are almost 3 months away from the 100th anniversary of the assassination of Archduke Ferdinand. If we are lucky, Wall Street’s puppet government in Washington will not blow up the world by June 28, 2014.

I have always despised President Woodrow Wilson for getting America into World War I. I want to cure the world of reoccurring Depressions through Worldwide Debt Cancellation and Monetary Reform. As I have explained before, Depressions in the West are caused by the accumulation of Unpayable Debts. These occur because Bankers have the right to charge us interest on money they created out of nothing. We need a non-interest bearing currency like President Lincoln’s Greenbacks. And we also must end fractional reserve banking which allows a bank to lend out ten dollars for every one on deposit. Woodrow Wilson gave us the Federal Reserve bank and WW I. We have had cycles of wars and Depressions ever since.

I would like to compare 1914 to what is happening today. Let me begin by quoting something I wrote about World War I a few years ago.

Edith Cavell made a fatal mistake. She mistakenly believed she lived in a democracy. She was a British nurse working in Belgium in 1915. She saw first hand the horrors of trench warfare. She also saw a quick and easy means for England to end the war with a victory. She wrote a letter to the Nursing Mirror which was published on April 15th, 1915. She said that ‘Belgian Relief’ efforts were actually being sent to Germany which would have to sue for peace without this aid from the allies. England was quite literally feeding the German army that was killing millions of French and British soldiers. What she did not know was that similar allied war materiel was being sent to Germany via Sweden and other neutral nations so the war could continue for several more years.

Sir William Wiseman heard about her letter. He was the head of British Intelligence in North America for MI6. He was a partner at the Rothschild owned Kuhn and Loeb Investment Bank. He ordered the Germans to arrest Edith Cavell. She was subsequently shot as a spy. Her mistake was to think that she lived in a democracy where the people could vote, write letters to the editor and have a say in the life and death decisions of the nation. She did not live to see what we have seen.

Americans ought not to believe they live in a democracy. Our politicians cannot prove to us that our votes are honestly counted. Every President since 1989 has been a CIA asset. The CIA is allowed to fly heroin and cocaine into America by the plane load. And the CIA is allowed to go into Senate Intelligence Committee computers and erase documents proving the Agency guilty of torture.

The media seems all too willing to cover up every plot against the American people from the assassination of President Kennedy to the controlled demolitions of the Murrah Federal building on April 19, 1995 and World Trade Center Towers 1, 2 and 7 on September 11, 2001. They also were willing to let the previous administration tell us lies to justify the invasions of Iraq and Afghanistan. And now the current administration tells us lies about Crimea. Believing their propaganda could get us all killed.

The US paid the opposition $5 billion to start riots before the May elections could be held. Then they hired snipers from as far away as Israel to shoot both the protesters and the police. They installed a Jewish banker as President without elections because they were not sure the people would vote to join the European Union in May. The coup leaders passed laws making the minority Hungarian and Russian languages sort of illegal. And just as they did in Libya the Americans stole the Ukraine’s gold and looted their banks. This plan to seize the Ukraine was mentioned in print by Zbigniew Brzezinski in 2007. He assumed Russia would respond by taking back the Crimea which Khrushchev had given away in 1954.

Barack Obama and his advisers are probably even more incompetent than Woodrow Wilson and his crew. The Obama crowd has announced war game exercises for Poland, the Czech Republic, Hungary, Bulgaria, Romania and the Baltics. Hopefully, Putin understands America cannot do anything militarily against a real Army. Obama’s advisers would like to crush Russia with sanctions. That will never happen. Russia has gold, oil, natural gas and other products that people all over the world want to buy. Nobody wants to buy America’s Genetically Modified Organisms. Even with retail stores dying America is still importing far more than it exports. And the Government Accounting Office said that the alleged 680 billion 2013 US budget deficit was really a trillion dollars. America by design has a permanently sick economy. America cannot survive sanctions.

Russia intends to announce the Holy Grail of energy deals in May when Putin visits China. China will buy Russian oil and natural gas with yuan. The United States has been occupying Afghanistan, funding Al Qaeda against Syria and killing people in Pakistan and Yemen with drones to prevent pipelines from distributing natural gas to Europe and to China. This restraint of trade has forced the price of natural gas and oil higher. Americans pay what they think are high rates for electricity but their natural gas prices are low. I am not familiar with the details of English utility bills but their utility bills are a lot higher than ours. And their government allows really outrageous gouging. European Union energy rules do not seem to be helping either. Barack’s forcing Russia to sell oil and natural gas to China will severely harm our allies in Great Britain and Europe. The economy of the EU cannot survive a 40% rise in their utility bills. They are near collapse anyway you say. Yes. But sanctions if not stopped now will push them over the edge sooner rather than later.

NATO wants to bring the Ukraine into their military alliance. This means if the Ukrainian coup leaders want to start World War III, we are all obligated to die. I once heard a Scotsman say that NATO stands for Not Altogether Thought Out. The Russians as part of that May Summit with China will be selling them Sukhoi SU-35 jet fighters. They can out maneuver the American F-22 and F-35 both of which are not really operational.

Prior to Putin’s visit to China in May the Chinese are expected to announce their gold holdings late in April. The last time they announced those holdings was in April of 2009. Sun Tzu in The Art of War said ‘when you are many pretend to be few.’ As I have said before, China has at least 7,000 tons of gold. They might announce a much lower number or delay the press release if they are not yet ready to reveal a gold backed yuan. They might prefer to do that in May or at least to announce something like the End of the Petrodollar which would be Phase I of the destruction of the US economy. That could take the form of an announcement that oil and natural gas would henceforth be bought and sold only in yuan, rubles and gold. That would send the dollar into a tailspin from which it will never recover.

All of this will come to a head at least a month before the 100th anniversary of the assassination of Archduke Ferdinand on June 28, 2014. This time around I am hopeful that the US military which several times has had to say No to launching World War III by attacking Iran will refuse to get us and themselves killed. Why should we die because Wall Street cannot manage the economy without stealing our money by the tens of trillions, starving people to death by the hundreds of millions and killing people in their wars by the billions?

Source: Vidrebel

Housing: One Chart Says It All

March 22, 2014 by · Leave a Comment 

Get a load of this chart from DataQuick’s National Home Sales Snapshot. It’ll tell you everything need to know about housing.

(Note: MSA=metropolitan statistical area)

As you can see, prices are flatlining or drifting lower while sales are sinking like a stone. That’s the whole ball of wax, isn’t it?

Sure, sales will increase in the spring (as they always do), but judging by the sharp dropoff in last year’s hottest markets, this could be the crappiest spring selling season since the crash.

Why?

Because prices are too high, rates are too high, “organic” demand is too weak, credit is too tight, and the pool of potential buyers has shrunk to the size of a walnut, that’s why.

The banks have reduced the percentage of distressed homes (foreclosures and short sales) on the market to roughly 11 percent from 59 percent in 2009. Fewer distressed homes mean higher prices, but higher prices mean fewer sales. It’s a trade-off. The banks get their money, but the market goes to hell. That’s how it works. According to most estimates, there are roughly 4.5 million homes in some stage of foreclosure. That means that –at the present pace–we should get through this Housing Depression a few weeks before Judgment Day. But don’t hold me to that.

Did you catch this gem on Bloomberg last week? It’s about the big private equity guys exiting the market. Take a look:

“Blackstone Group LP is slowing its purchases of houses to rent amid soaring prices after a buying binge made it the biggest U.S. single-family home landlord. Blackstone’s acquisition pace has declined 70 percent from its peak last year, when the private equity firm was spending more than $100 million a week on properties, said Jonathan Gray, global head of real estate for the New York-based firm…

“The institutional wave has passed,” Gray, who oversees almost $80 billion in property investments, said in a telephone interview. ‘It’s at a much lower level than it was 12 or 24 months ago.’

Private-equity firms, hedge funds, real estate investment trusts and other institutional investors have spent more than $20 billion to buy as many as 200,000 rental homes in the last two years. They snapped up properties after prices fell as much as 35 percent from the 2006 peak…

American Homes 4 Rent and Colony American Homes, the second- and third-largest single-family landlords, also have been scaling back as bargains dry up…

“We’re going to have to probably slow down a little bit on our acquisition pace until we have a better view or actual certainty of the capital being available,” (Chief Executive Officer David ) Singelyn said.

Colony Financial Inc. (CLNY), a REIT that invests in Colony American Homes, slowed its funding for acquisitions last year to focus on improving operations, CEO Richard Saltzman said in a November conference call…

American Residential Properties Inc. (ARPI), a landlord with 6,000 homes, slowed acquisitions by almost half in its latest quarter ending Dec. 31. It invested $104 million in 633 homes compared with $204 million on 1,251 homes in the previous quarter, the Scottsdale, Arizona-based company said in a statement.” (Blackstone’s Home Buying Binge Ends as Prices Surge, Bloomberg)

Okay, so the speculators are getting out of housing. How’s that going to effect the market?

No one really knows yet, but it can’t be good, after all, all-cash deals amounted to nearly 50 percent of all homes sales in many of the hotter markets last year. That’s why prices went up even though the economy was still in the shitter, because the fatcats were loading up on cheap real estate. Now it looks like they’re headed for the hills. That’s NOT going to be good for sales.

Did you know that existing home sales have dropped for six months straight, dipping below trend to the same level they were at in 1998?

But how can that be, you ask, when everyone’s blabbing about the recovery? How can that be when the Fed has purchased more than $1.4 trillion in mortgage-backed securities (MBS) and rates are a measly 4.5%? How can that be prices have been climbing higher for more than a year?

Sales are dropping because millions of people are underwater on their mortgages and can’t afford to move. Millions more are stuck in their homes and aren’t paying anything at all. Millions more have student debt up to their eyeballs and will probably never own a home. And millions more still can’t find a job. That’s why home sales are plunging, because the economy stinks. It’s that simple. Sure, the market got a nice little bump from Bernanke’s $4 trillion liquidity-surge. Big whoop. Besides, that was 2012-2013. Today things are different. Today the Fed is winding down QE and there’s even talk of rate-hike. How do you think that’s going to impact sales?

Now get a load of this from Redfin:

“Home sales continued to be sluggish in February, and decreasing affordability is holding back would-be buyers, according to Redfin…. Slow sales have been largely attributed to low inventory for months, but many markets have now seen inventory rise while sales continue to fall. Several markets along the West Coast have seen sharp increases in inventory, yet home sales in the West fell 13.4 percent year over year, hitting their lowest point in five years in the first two months of 2014, while prices rose 19.1 percent year over year…

West Coast Sales Hit Lowest Point in Five Years

– In Redfin’s West Coast markets, sales fell 13.4% from February 2013, and hit a five-year low in the first two months of 2014. Sales fell most dramatically in Las Vegas (-22.7%), Sacramento (-21.8%) and Ventura (-20.8%). Across 19 markets, sales fell 10.3%, with markets east of the Rockies taking a less dramatic hit and a few even seeing modest increases.” (Redfin)

Did you catch that part about “inventory rising while sales continue to fall”?

For months, the media has been using the “low inventory” excuse for the rotten sales figures. Now they’ve moved onto “bad weather” to pull the wool over people’s eyes. Talk about a lame excuse. It’s been in the 70 and 80s in California for most of the winter and sales are down by a whopping 13 percent. Are potential buyers staying at home because they’re afraid of getting skin cancer? Is that it? (That’ll probably be the next excuse.)

So why ARE home sales tanking?

It’s because you can’t buy a house if you’re working graveyard at Freddie’s Burger Bar for $8.50 an hour. It’s because you can’t put together a 20% down-payment if you’re camped out on Mom’s sofa in the attic along with Uncle Murray’s trombone and your Dad’s photo collection of soup cans. It’s because you can’t qualify for a mortgage when 100 percent of your weekly paycheck goes to paying the VISA, filling the gas-tank, and buying a few groceries at Danny’s Discount Foodmart. It can’t be done.

That’s what’s really going on. That’s why the share of firsttime homebuyers is currently at its lowest level ever. That’s why purchase applications are at an 18-year low. That’s why the homeownership rate has slipped to levels not seen since 1995. And that’s why mortgage originations were down almost 60 percent year-over-year. It’s because the economy sucks. Everyone knows it.

Now take a look at one last chart. It’s by Logan Mohtashami at dshort.com. from an article titled,Mortgage Purchase Applications Running Out Of Time.

unnamed-1

As you can see, there’s a pretty close connection between incomes (the green line) and the mortgage purchase applications index. (The people who can afford to buy homes.)

Surprised?

Of course not, because most people assume there’s a relationship between ‘what a person earns’ and his ‘ability to buy a home’. After all, we haven’t always lived in this bizarro credit-addled world where anyone who can sit upright in a chair and sign his name on the dotted line can buy a $450,000 rambler in Orchard Hills. That’s a fairly new development.

And that brings us to the point of this article, which is to show that all the monetary hocus pocus has achieved nothing. The Fed’s Koolaid infusions have been a dead-loss. The market is still flat on its back. Kaput. Which shows, that if you want to fix housing, you have to fix the economy. And if you want to fix the economy; you have to put people back to work and pay them a fair wage. It’s that simple.

So why can’t anyone in Washington figure it out?

(Note: As this article was going to press, the latest “existing home sales” data was released.) According to USA Today:

“Existing home sales slowed again in February, falling to the lowest pace in 19 months.”

So February was even slower than the coldest month of the year, January?

Unbelievable.


Mike Whitney is a regular columnist for Veracity Voice

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

War Is A Certainty

March 17, 2014 by · 2 Comments 

Any country that is considering waging war against another country should first consider that the loser is almost always the country that runs out of money first.

Recently, an associate offered the following observation with regard to the likelihood of war in the immediate future:

“The big guys like to play chess with the world. It’s the biggest game. The bankers need ups and downs and wars to make money. The military needs wars to exist. The politicians need both to exist.

Whilst he was reiterating a concept we have discussed on many occasions, it occurred to me that I have never seen the subject defined so succinctly, nor so informatively.

Let’s break it down:

The bankers need ups and downs and wars to make money

Just as bankers increase their profit as a result of upward and downward economic fluctuations, so, too, do they benefit from war. It is not unusual for a given bank to finance those who would create armed conflict, and indeed, they sometimes bankroll both sides. Whilst banks have other means of making money, war is often more profitable than conventional banking.

The military needs war

The military-industrial complex is in the business of selling armaments to governments. Although armament sales may tick over nicely in peace time, they boom in war time. Therefore, any armament supplier will benefit from war. It matters little whether it is an all-out war or a series of smaller ventures. The object is sales.

The politicians need both banks and war

This is true in the sense that politicians need both bankers and an active military to thrive. Political campaigns depend upon funding. Banks and armament suppliers have long been a major source of campaign funds for candidates of the primary political parties. (If each party is well-paid before the election, favourable treatment towards banks and armament suppliers is assured, regardless of which party wins an election.)

But there is further necessity for armed conflict with regard to politicians. First, it is a truism that a country rarely changes leaders during times of war, and nothing is more imperative to the politician than gaining a further term of office.

Second, nothing distracts the voting public like war. If a politician is receiving increased criticism from the voters, a good war can be counted on to get the voters concentrating more on the war than on the politician’s poor stewardship.

Third, governments typically remove the freedoms of a populace over time. Whilst citizens may object to the loss of their freedoms in normal times, they are often more willing to relinquish them “temporarily” in times of war, “for the good of the country.” Not surprisingly, lost freedoms are seldom reinstated after a war.

Consider the words of James Madison, the fourth US President:

“Of all the enemies of public liberty, war is, perhaps, the most to be dreaded, because it comprises and develops the germ of every other. War is the parent of armies; from these proceed debts and taxes; and armies and debts and taxes are the known instruments for bringing the many under the dominion of the few. In war, too, the discretionary power of the Executive is extended…. No nation could preserve its freedom in the midst of continual warfare.”

Generally speaking, the citizens of most countries would prefer to avoid war. After all, they rarely benefit from it. But then, the impetus for war is almost never generated by the people of a country. Unless a nation is actually attacked, in nearly every case, the people need to be talked into going to war.

Convincing the People

A good example of this is the US, who, since World War I, have needed convincing on almost every occasion when political leaders proposed war. In World War I, the Lusitania incident was created jointly by the UK and the US to motivate them. In World War II, the goading of Japan was needed. In Vietnam, the trumped-up Gulf of Tonkin incident was needed, and so on.

Suffice to say that, when bankers, the military industrial complex, the politicians, or all three decide to instigate war, war will come to pass. Whether it is a conservative government or a liberal government, if a clear threat does not exist, one will be invented.

As Hermann Goering stated in the Nuremburg trials,

“Naturally, the common people don’t want war. But after all, it is the leaders of a country who determine the policy, and it is always a simple matter to drag people along, whether it is a democracy or a fascist dictatorship, or a parliament, or a communist dictatorship. Voice or no voice, the people can always be brought to the bidding of the leaders. This is easy. All you have to do is tell them they are being attacked, and denounce the pacifists for lack of patriotism and exposing the country to danger. It works the same in every country.”

At the present time in history, the countries of the First World have created the greatest pillaging of the state coffers that has ever occurred. As complacent as the peoples of both the EU and the US have been in recent decades, there does seem to be a growing understanding amongst the peoples that they have been scammed.

Aside from continuing quantitative easing until that scam also fails, the respective governments are running out of rabbits to pull out of the hat to distract the masses. It would therefore seem that there has been no time in history in which war was so neededby national leaders—both as a distraction to the populace and as a last squeeze at the monetary lemon, prior to the inevitable crash.

And so, what does that mean to the reader? Assuming he is not invited to take part, shouldn’t the drums of war be of little interest to him? Well, in terms of his own physical safety, that may well be true, but here is an historical fact to consider:

Any country that is considering waging war against another country should first consider that the loser is almost always the country that runs out of money first.

No venture is more costly than warfare. The EU and the US are bankrupt now. Those presently living in those locales may escape actual duty in the military, but they will unquestionably be expected to pick up the tab through taxation.

Those who presently feel that their obligations to their governments are already barely manageable might wish to consider what they will be, both during and after a major war.

Source:  Jeff Thomas  |  International Man

The World On The Brink

March 15, 2014 by · Leave a Comment 

These are an extremely pivotal few days from the standpoint of international political economy and the Ukrainian crisis.

Last minute diplomatic talks in London between Russia and the USSA over the Ukrainian crisis failed on Friday, and USSA Secretary of State, John Kerry,has delivered an ultimatum to Russia — if the outcome of the Crimean referendum on Sunday is not to the liking of the USSA government then Washington, DC and its European allies will take a series of further, serious, unspecified, retaliatory measures on Monday.

These threatened measures are widely expected to include a range of financial sanctions. The whiff of a possible NATO/ USSA war with Russia is also in the air. The negative consequences of a NATO/ USSA military clash with Russia include the very real threat of a nuclear conflict, since both sides are very heavily armed with a full array of nuclear ballistic missiles, cruise missiles, torpedoes and bombs.

China has viewed the rapidly developing crisis with a thoroughly jaundiced eye and has warned against sanctions by the USSA against Russia due to the “unforeseeable consequences” and “retaliatory action” that such sanctions might engender.

Given that China holds $1.3 trillion of the USSA’s government debt, which it could willy-nilly dump, with disastrous effects on the American economy, and also has a full brace of nuclear missiles that can reach the USSA mainland and its numerous military bases in the Pacific region, the warning is not an empty threat. Here is a photo of a Chinese “boomer”laden with nuclear missiles headed out to sea.

Indeed, in anticipation of probable anti-Russian sanctions Russian financial institutions have already begun pulling vast sums of money out of the West, including some $105 billion out of the USSA this week alone.

This takes place in the context of Russian carrier-based jets staging war exercises in the eastern Mediterranean, flying from the deck of the aircraft carrier Admiral Kuznetsov, near Cyprus. This is also near Israel, off the coast of Syria. The message could not be clearer that Russia intends to stand by its long-time ally Syria, at the same time that it sends a cautionary message to Israel. It is fair to assume that the Kuznetsov battle group is carrying nuclear weapons, as do USSA aircraft carrier battle groups.

Speaking of which, the Pentagon has announced that the aircraft carrier USS George H.W. Bush will be remaining in the Mediterranean a few more days due to the crisis in Ukraine. Also today, Russian self-defense forces in Crimea announced the capture of an American military drone that was surveiling the peninsula.

On Sunday, the Crimeans will most likely vote to join the Russian Federation. If they do, the following day the USSA government will announce punitive measures against Russia. After that, the Russians and Chinese will take whatever steps they feel are appropriate, and then the USSA government and its allies will take further steps in response.

This entire scenario is fraught with profound peril for the whole world. I don’t know what is going to happen, but a hard shock to the global financial system, in the coming days and weeks, appears highly possible.

The more so as financial astrologers are unanimously pointing to April 2014 (next month) as being a period of financial crisis for the USSA economy and its so-called “Federal Reserve Bank.” I am not a financial astrologer, but I have to say that their prognostications are right on the money. April is shaping up to be a period of intense crisis for the USSA and its financial system.

I do not presume that in a war with Russia and China, be it a nuclear exchange or a financial showdown, that the USSA and its European allies will necessarily prevail. J.P. Morgan, the early-20th century Robber Baron, famously said that millionaires do not have astrologers, but billionaires do. For millennia, kings, queens, emperors, and now presidents, premiers and prime ministers, have been consulting astrologers. I would be very surprised if the Chinese and Russians do not take full advantage of the propitious astrology of April 2014 to take the USSA government and the U.S. Federal Reserve Bank down a peg.

Though I am not a financial adviser, it does seem prudent to me for people who are aware of the confusion that is coming to use the period of time right now to prepare for future contingencies that may arrive within mere weeks. If the USSA financial system crashes hard, and that possibility realistically exists, then the American dollar is going to lose value, perhaps a great deal of value, and most of the world will feel the effects.

Paper currency, any paper currency, becomes just paper when enough people lose confidence in its value. Historically, silver and gold have held their value across thousands of years. I do not have any gold and silver, or platinum, palladium or rhodium, either. But if I were financially able I would certainly obtain some and take physical possession of it. I would do it this very day. We are entering a period of high uncertainty right now and no one knows how long it will last, or how severe the crisis may become. One thing is certain: those who are least prepared, physically, psychologically, emotionally, spiritually, financially, socially, etc. will fare the worst.

So get ready.

Source: Richard Sauder  |  Event Horizon Chronicle

Does A 100 Trillion Debt Total Matter?

March 15, 2014 by · Leave a Comment 

Debt is everywhere but it just does not seem to matter. Thanks to the folks at Zero Hedge, you get the account Global Debt Crosses $100 Trillion, Rises By $30 Trillion Since 2007; $27 Trillion Is “Foreign-Held” – ”Total global debt has exploded by 40% in just 6 short years from 2007 to 2013, from “only” $70 trillion to over $100 trillion as of mid-2013, according to the BIS’ just-released quarterly review“. They make this assessment:

“Not surprisingly, given the significant expansion in government spending in recent years, governments (including central, state and local governments) have been the largest debt issuers (Graph C, left-hand panel). They mostly issue debt in domestic markets, where amounts outstanding reached $43 trillion in June 2013, about 80% higher than in mid-2007 (as indicated by the yellow area in Graph C, left-hand panel). Debt issuance by non-financial corporates has grown at a similar rate (albeit from a lower base).”

There seems only one valid conclusion drawing upon these figures. Whatever economic activity exists is based upon government expenditures and that corporations have lowered their interest rates on their outstanding debt. The former is most disturbing, while the latter, under normal circumstances, would offer a promise of an expanding economy.

Since the former middle class has endured the greatest loss of income and experiences a distinct lowering in their standard of living since the financial meltdown, the prospects of main street prosperity seems remote at best. Corporations, as a whole, have improved their balance sheets as they lower their debt service, accompanied with cost efficiencies and reduction in employee costs. The day of the upward mobility career looks like a distant memory for the working class.

Government employment is growing, but such a public sector economy never produces actual wealth. Only a disturbing burden of welfare obligations of all kinds and an increase in state debt comes out of this pattern of a false and unsustainable economy.

On the contrary, is that ultimate collapse inevitable when the paper financial system just keeps churning out a rise in the stated 40% increase in debt in just 6 years? Why not just continue the quantitative easing influx of funds to roll over past debt and purchase the new bonds needed to run the State/Corporate economy. If this irrational strategy is not working, why has the bottom not dropped out of the world economy?

This is a very sobering viewpoint that defies the normal predictability of mathematical consequences. Surely, there can be no debate that this 100 Trillion indebtedness will never be paid off. However, the political accommodations always seem to invent another rescue plan that prevents the wheels of commerce from stopping.

The reason why the elites are able to get away with this practice of delaying the inescapable is that they make the rules of how to elude the last constrains that would impose accountability. The financial game is like a moving target that never flies out of range. The quarry just changes direction and speed. Requirements for default are rewritten and the next imposition of austerity packages demands even more harsh burdens for the taxpayers. Net result from this tactic is that the purchasing power of all paper currencies loses value.

Possessing a monopoly on money means that this alarming world indebtedness only requires a periodic company bankruptcy that liquidates the stockholder equity or a governmental devaluation of its currency, which further impoverishes its citizen’s wealth.

Remember that the Bank of International Settlement is the central bank for all the other banksters’ own fiat fractional reserve branches. The essential question to investigate is why does every readjustment of national borders with the creation or demise of a particular country, immediately establish a national bank that conforms to the standards of the banksters’ financial system?

The obvious reason lies within the control of debt created currency. Not until every facet or deed of possessions is encumbered with a property lien, will the debt total be modified to superimpose a new financial order.

The uber-rich are not a function of amassing wealth alone. Titans of financial oppression are manipulators of the political banking system. Being part of the decisions that expropriate from the common-man and consolidates greater control under the auspicious of an evil elite, is the chart that needs to be tracked.

Funny money always buys fewer possessions. However, global indebtedness diminishes human freedom on a far more vast scale. While the economics of inconceivable debt defies intellectual acceptance, the absurdity of the geo-politics moves further to an institutional enslavement that is even more unimaginable to the naive laborer in a corporatist environment.

How many times have you heard soothsayers and investment guru’s forecast that the collapse is imminent? By all logic, they should be right. Nonetheless, there is to all intents and purposes, no end to the economic and governmental subjugation that continues uninterrupted.

Public and private debts are ultimately satisfied when insolvency turns into liquidation. Lawful and legal procedures do not apply when entire countries and economic alliances go on the chopping block. In the end, the trillions in unpaid debt instruments will continue to accrue interest from the theft of several billion peons that are afraid of resisting the established global order.

Economic prosperity is possible, but only after the chains of financial incarceration is broken. Within this zero interest rate backdrop, the acumination of untold fortunes grows as the people sink into a greater poverty. This plan is working well for the banksters.

Next, the winds of war are on the horizon to ratchet up another phony conflict in order to sell an even greater austerity to the public. It is very plausible that a 100 trillion measure will be but a long forgotten barrier when the gnomes of financial pillage ramp up their next rescue scheme.

Never underestimate the creative criminal wizardry of the central banksters to sell their next round of thievery or the gullibility of the masses to obey the dictates of outlaw governments.


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

Sartre is a regular columnist for Veracity Voice

Avoiding WWIII

March 14, 2014 by · Leave a Comment 

There Is A Great Risk of WWIII Over Ukraine / Crimea. But it could be avoided if Russia and China act fast, dumping their dollar reserves, breaking the US dollar, thereby breaking the US economy.They don’t need all of the BRICS for that.

Mr. Putin knows it, Mr. Xi knows it and Mr. Obama knows it – that Washington is holding the shorter stick.

What do the gentlemen Putin and Xi wait for?

For more brazen actions by Washington and its European lackeys and puppets?

It’s already widely known that the snipers in Kiev who killed almost 100 people were mercenaries paid for and were following US orders – straight from the US embassy in Kiev.

Blackwater and other US mercenaries – proxy armies – are roaming the streets of Kiev and other Ukrainian western cities who have indicated their desire to stay allied with Russia.

Mr. Putin knows it.

What else is needed to show the empire and its marionettes that they are naked? That they will be severely hurt if they follow Obama’s and the Pentagon’s unconscious war cries? – If they continue to allow the presstitute media to numb their brains?

Why doesn’t Russia start ‘sampling’ what it could do? Like cutting of gas supplies to Europe – for starters? That seems to be easy enough.

Of course, Washington needs wars not only to reach global hegemony, but also for its mickey-mouse economy to survive; this hell-bound military / security industrial economy that produces about 60% of the US GDP – plus the endless production of unbacked dollars not worth the paper they are printed on – debt that is bought the world over in the form of Treasury Bonds as reserve currency – which is the driver of the American economy’s (sic) senseless consumerism – accounting for almost the reminder of US economic output.

What would be easier than to cut the world lose from this strangling chain – and send Washington and its stooges down the drain of national bankruptcy?

And starting a new segment of civilization, a new currency, a basket of moneys from sound and healthy economies?

There are plenty of countries who would like to participate in such a new beginning, even if the BRICS cannot get their act together fast enough — Vietnam, Malaysia, Iran, Venezuela with the planet’s largest known hydrocarbon reserves – as well as Central Asian and other hydrocarbon producers.

The world populations may have to go through some dry stretches and trying periods – but would come out of it as winners – happy winners of a fairer global economy, where long-lost national sovereignties would be reinstated, with new partnerships and with of a new sense of human and societal solidarity.

Very likely, the presstitute, the propaganda whores of today’s linchpins would want to switch seats to side with the ‘winners’, as they imagine it’s with them that new lucre is waiting.

Wrong. These media criminals, who have millions of lives – or deaths – on their spineless backs, would be shed, floored, ignored annihilated.

New and truth journalism would flourish, instead.

Why is it so difficult to imagine such a new-born and healthy world? – And act on it fast? – Before our hapless humanity allows to be self-destroyed by a nuclear WWIII?

Peter Koenig is an economist and former World Bank staff. He worked extensively around the world in the fields of environment and water resources.

World Has No Idea How U.S. Decides On Wars

March 14, 2014 by · Leave a Comment 

People from Yemen and Pakistan and elsewhere have told me, and have testified in the U.S. Congress, that they have a hard time convincing their neighbors that everyone in the United States doesn’t hate them.  There are buzzing killer robots flying over their houses night and day and every now and then blowing a bunch of people up with a missile with very little rhyme or reason that anyone nearby can decipher.  They don’t know where to go or not go, what to do or not do, to be safe or keep their children safe.  Their children have instinctively taken to crouching and covering their heads just like U.S. children in the 1950s were taught to do as supposed protection from Soviet nuclear weapons.

The good news is that, of course, we don’t all hate Yemenis or Pakistanis or Somalis or Afghans or Libyans or any of the other people who might suspect us of it.  The bad news — and the news that I’m afraid would be almost incomprehensible to many millions of people around the world — is that most of us have only the vaguest idea where any of those countries are, some of us don’t know that they ARE countries at all, and we pay far greater attention to our sports and our pets than to whom exactly our government is killing this Tuesday.

This obliviousness comes into sharpest relief perhaps when we elect the officials who are legally called on to decide on our wars.  The extent to which Congress has handed war making over to presidents is also brought out by observing Congressional elections.  It is not at all uncommon for U.S. Congressional candidates’ platforms to entirely ignore all questions of war and peace, and to win support from either Democrats or Republicans despite this omission — despite, in particular, taking no position on the area funded by 57% of the dollars they will vote on if elected, namely wars and war preparations.

Here in Virginia’s Fifth Congressional District, a man named Lawrence Gaughan recently announced as a Democratic candidate for Congress.  I’d never heard of him, so I took a look at the “Issues” section of hiswebsite.  Not only WAS there such a section (some candidates campaign purely on their biography without taking positions on anything), but Gaughan’s site had clear forthright statements on a number of important issues.  He backed labor unions despite their virtual nonexistence in his district.  He admitted the existence of climate change.  He backed Eisenhower era tax rates (!!).  And his statements made commitments: “I will not vote for any tax cuts for those making over 250,000 dollars a year.” “I support the Dream Act.” “I would vote for any legislation that would bring back jobs in construction, manufacturing and production.” Either this guy had real principles or he was just too new for anyone to have explained to him how to make his promises vague enough not to commit himself to any specific actions.

All too typically, however, when I scrolled through the “Issues,” I noticed a gap.  I sent this note off to the candidate’s staff:

“Your candidate has some of the best and clearest positions on domestic issues that I’ve seen, and dramatically superior to Congressman Hurt’s, but judging by his website as it stands today he seems to have no position on foreign policy whatsoever, or even on that 57% of discretionary spending that, according to the National Priorities Project, goes to militarism.  For people who support domestic social justice AND peace in the world in this district, we are put in a bind by our history. Congressman Perriello voted for every war dollar he could, and has made a career of pushing for new wars since leaving office.  Congressman Hurt is a disaster on other issues but listened to us and took a stand against missile strikes on Syria. He even listened to us on lawless imprisonment and voted against a “Defense” Authorization Act on one occasion. Helpful as it is to know what Lawrence Gaughan thinks of 43% of the budget, some of us are really going to have to know what he thinks of the larger part.  Would he cut military spending? Would he oppose new wars? Does he oppose drone strikes? Would he repeal the authorization to use military force of ’01 and that of ’03? Would he support economic conversion to peaceful industries on the model now set up in Connecticut? Would he advance a foreign policy of diplomacy, cooperation, actual aid, and nonviolent conflict resolution? Are there any foreign bases he would close?  Does he think having U.S. troops in 175 nations is too many, too few, or just right? Does he support joining the ICC? Thanks for your time!”

A couple of days later, Gaughan called me on the phone.  We talked for a while about foreign policies, wars, peace, militarism, the economic advantages of converting to peaceful industries, the danger of handing war powers over to presidents.  He said he opposed wars. He said he wanted to take on the influence of the military industrial complex.  He didn’t seem particularly well informed, but he seemed to be coming from a fairly good place or to at least be willing to get there.

He proposed allowing military veterans to never pay any taxes.  That’s not exactly the sort of resistance to militarism that President Kennedy had in mind when he wrote that wars would continue until the conscientious objector has the honor and prestige of the soldier.  Gaughan offered no tax cuts for conscientious objectors.  Still, he said he’d get some good statements on foreign policy added to his website right away. He also said he’d be willing to debate the other candidates, including the incumbent, on foreign relations, should peace groups create such a forum and invite him.

Lo and behold, the next day, this appeared on Gaughan’s website:

Military

“We have strayed from our constitution when it comes to the defense of our nation and declaration of war. I was opposed to the war in Iraq for many reasons.  The enormous price paid by our brave men and women as well as the huge financial debt that we incurred was not necessary.  Republicans in Congress continue to defer those costs on our military personnel and our veterans through the sequester and other austerity measures.

“Not withstanding the government shutdown, the Republican budget proposals that my opponent, Robert Hurt, has voted for over the past three years, have forced the Pentagon into reductions that have taken a tremendous toll on enlisted personnel right here in our district. These political policies are also causing reductions to TriCare, active duty health benefits, and to retired military pensions. As the greatest nation on earth, it is unacceptable that we have homeless veterans or military families who struggle to pay the bills.

“We owe so much to the men and women who serve. Instead of laying off soldiers and cutting funding for the VA, we could begin by eliminating the ongoing fraud by military contractors. Fraud committed by dozens of irresponsible military industry corporations have cost taxpayers more than $1.1 trillion. Eliminating this fraud would offset most of the estimated $1.2 trillion in policy savings required over the next decade in order to realize the Center on Budget and Policy Priorities estimated $1.4 trillion in deficit reduction without ‘gutting our military’. Furthermore, as a component of tax reform, there should be a tax exemption status for veterans written into the tax code.”

His topic, all too typically — people around the world should understand — is not how to relate to the 95% of humanity that is not in the United States, but how to treat “The Military.”

His first sentence echoes our discussion of the past three-quarters century of undeclared wars, but doesn’t spell it out.  Will he oppose wars that lack a Congressional declaration or not?

He picks one past war to oppose without stating his position on future wars.  He describes the costs of a war that killed some million Iraqis and destroyed a nation as all being paid by the U.S. and its soldiers.

He blames the sequester agreement on only one of the two parties that agreed to it, and buys into themyth that it has resulted in cuts to the military.  (True, Democrats in the Senate recently put up a token effort to fund veterans’ needs and were blocked by Republicans.)  Gaughan claims that we owe “so much” to members of the military who “serve.”  What exactly do we owe them? Can he name something that we owe them? He doesn’t want soldiers to be “laid off,” as if employing them is a make-work jobs program.

In my view we owe veterans housing, healthcare, education, a clean environment, and a healthy society because they are human beings — and we owe it equally to every other human being.  But we shouldn’t pretend that the military’s so-called “service” isn’t making us hated around the world.  We shouldn’t try to produce more veterans as if there were something noble about murdering people.

Gaughan almost closes on an up note.  He acknowledges fraud by military contractors.  He even calls them “military,” rather than using the misleading term “defense.”  But then he makes clear that he doesn’t want to cut the military. He wants to create efficiency to avoid cuts while saving money.

Would he repeal authorizations to use military force? Who knows. Would he back future wars? Who can tell? Does he believe U.S. troops should be in 175 nations? Perhaps.  But if they were in 182 would he then think 182 was the right number?  Does he favor allowing presidents to murder people with missiles from drones or by any other means?  Does he think antagonizing Russia and China and Iran should remain the focus of U.S. foreign policy?  Does he want the occupation of Afghanistan ended? Who knows.

He brought up a Department of Peace on our phone call, but it didn’t make the website yet.  One can hope that Gaughan’s website is a work in progress.  There’s certainly a chance he’ll become a far better candidate and Congress member than this district has had in a long time.

But this, dear world, is more or less how the world’s largest-ever killing machine operates.  It turns its eyes away from the machine’s work and, if pushed, debates the care of the machine itself — maintaining more or less complete obliviousness to the horrors the machine produces in those far away places where you live and die.

Source: DavidSwanson | Washington’s Blog

Big Oil’s “Sore Losers” Lead The Drive To War

March 14, 2014 by · Leave a Comment 

“We are witnessing a huge geopolitical game in which the aim is the destruction of Russia as a geopolitical opponent of the US or of the global financial oligarchy…..The realization of this project is in line with the concept of global domination that is being carried out by the US.”

- Vladimir Yakunin, former Russian senior diplomat

“History shows that wherever the U.S. meddles; chaos and misery are soon to follow.”

- Kalithea, comments line, Moon of Alabama

Following a 13 year rampage that has reduced large swathes of Central Asia and the Middle East to anarchy and ruin, the US military juggernaut has finally met its match on a small peninsula in southeastern Ukraine that serves as the primary operating base for Russia’s Black Sea Fleet. Crimea is the door through which Washington must pass if it intends to extend its forward-operating bases throughout Eurasia, seize control of vital pipeline corridors and resources, and establish itself as the dominant military/economic power-player in the new century. Unfortunately, for Washington, Moscow has no intention of withdrawing from the Crimea or relinquishing control of its critical military outpost in Sevastopol. That means that the Crimea–which has been invaded by the Cimmerians, Bulgars, Greeks, Scythians, Goths, Huns, Khazars, Ottomans, Turks, Mongols, and Germans–could see another conflagration in the months ahead, perhaps, triggering a Third World War, the collapse of the existing global security structure, and a new world order, albeit quite different from the one imagined by the fantasists at the Council on Foreign Relations and the other far-right think tanks that guide US foreign policy and who are responsible for the present crisis.

How Washington conducts itself in this new conflict will tell us whether the authors of the War on Terror–that public relations hoax that concealed the goals of eviscerated civil liberties and one world government–were really serious about actualizing their NWO vision or if it was merely the collective pipedream of corporate CEOs and bored bankers with too much time on their hands. In the Crimea, the empire faces a real adversary, not a disparate group of Kalashinov-waving jihadis in flip-flops. This is the Russian Army; they know how to defend themselves and they are prepared to do so. That puts the ball in Obama’s court. It’s up to him and his crackpot “Grand Chessboard” advisors to decide how far they want to push this. Do they want to intensify the rhetoric and ratchet up the sanctions until blows are exchanged, or pick up their chips and walk away before things get out of hand? Do they want to risk it all on one daredevil roll of the dice or move on to Plan B? That’s the question. Whatever US policymakers decide, one thing is certain, Moscow is not going to budge. Their back is already against the wall. Besides, they know that a lunatic with a knife is on the loose, and they’re ready to do whatever is required to protect their people. If Washington decides to cross that line and provoke a fight, then there’s going to trouble. It’s as simple as that.

Perma-hawk, John McCain thinks that Obama should take off the gloves and show Putin who’s boss. In an interview with TIME magazine McCain said “This is a chess match reminiscent of the Cold War and we need to realize that and act accordingly…We need to take certain measures that would convince Putin that there is a very high cost to actions that he is taking now.”

“High cost” says McCain, but high cost for who?

What McCain fails to realize is that this is not Afghanistan and Obama is not in a spitting match with puppet Karzai. Leveling sanctions against Moscow will have significant consequences, the likes of which could cause real harm to US interests. Did we mention that “ExxonMobil’s biggest non-US oil project is a collaboration with Russia’s Rosneft in the Arctic, where it has billions of dollars of investments at stake.” What if Putin decides that it’s no longer in Moscow’s interest to honor contracts that were made with US corporations? What do you think the reaction of shareholders will be to that news? And that’s just one example. There are many more.

Any confrontation with Russia will result in asymmetrical attacks on the dollar, the bond market, and oil supplies. Maybe the US could defeat Russian forces in the Crimea. Maybe they could sink the fleet and rout the troops, but there’ll be a heavy price to pay and no one will be happy with the outcome. Here’s a clip from an article at Testosterone Pit that sums it up nicely:

“Sergei Glazyev, the most hardline of Putin’s advisors, sketched the retaliation strategy: Drop the dollar, sell US Treasuries, encourage Russian companies to default on their dollar-denominated debts, and create an alternative currency system with the BRICS and hydrocarbon producers like Venezuela and Iran…

Putin’s ally and trusted friend, Rosneft president Igor Sechin…suggested that it was “advisable to create an international stock-exchange for the participating countries, where transactions could be registered with the use of regional currencies.” (From Now On, No Compromises Are Possible For Russia, Testosterone Pit)

As the US continues to abuse its power, these changes become more and more necessary. Foreign governments must form new alliances in order to abandon the present system–the “dollar system”–and establish greater parity between nation-states, the very nation-states that Washington is destroying one-by-one to establish its ghoulish vision of global corporate utopia. The only way to derail that project is by exposing the glaring weakness in the system itself, which is the use of an international currency that is backed by $15 trillion in government debt, $4 trillion in Federal Reserve debt, and trillions more in unpaid and unpayable federal obligations. Whatever steps Moscow takes to abort the current system and replace the world’s reserve currency with money that represents a fair store of value, should be applauded. Washington’s reckless and homicidal behavior around the world make it particularly unsuitable as the de facto steward of the global financial system or to enjoy seigniorage, which allows the US to play banker to the rest of the world. The dollar is the foundation upon which rests the three pillars of imperial strength; political, economic and military. Remove that foundation and the entire edifice comes crashing to earth. Having abused that power, by killing and maiming millions of people across the planet; the world needs to transition to another, more benign way of consummating its business transactions, preferably a currency that is not backed by the blood and misery of innocent victims. Paul Volcker summed up the feelings of many dollar-critics in 2010 when he had this to say:

“The growing sense around much of the world is that we have lost both relative economic strength and more important, we have lost a coherent successful governing model to be emulated by the rest of the world. Instead, we’re faced with broken financial markets, underperformance of our economy and a fractious political climate.”

America is irreparably broken and Washington is a moral swamp. The world needs regime change; new leaders, new direction and a different system.

In our last article, we tried to draw attention to the role of big oil in the present crisis. Author Nafeez Ahmed expands on that theme in a “must read” article in Monday’s Guardian. Check out this brief excerpt from Ahmed’s piece titled “Ukraine crisis is about Great Power oil, gas pipeline rivalry”:

“Ukraine is increasingly perceived to be critically situated in the emerging battle to dominate energy transport corridors linking the oil and natural gas reserves of the Caspian basin to European markets… Considerable competition has already emerged over the construction of pipelines. Whether Ukraine will provide alternative routes helping to diversify access, as the West would prefer, or ‘find itself forced to play the role of a Russian subsidiary,’ remains to be seen.” (Guardian)

The western oil giants have been playing “catch up” for more than a decade with Putin checkmating them at every turn. As it happens, the wily KGB alum has turned out to be a better businessman than any of his competitors, essentially whooping them at their own game, using the free market to extend his network of pipelines across Central Asia and into Europe. That’s what the current crisis is all about. Big Oil came up “losers” in the resource war so now they want Uncle Sam to apply some muscle to put them back in the game. It’s called “sour grapes”, which refers to the whining that people do when they got beat fair and square. Here’s more from Ahmed:

“To be sure, the violent rioting was triggered by frustration with (Ukrainian President) Yanukovych’s rejection of the EU deal, (in favor of Putin’s sudden offer of a 30% cheaper gas bill and a $15 billion aid package) along with rocketing energy, food and other consumer bills, linked to Ukraine’s domestic gas woes ….. Police brutality to suppress what began as peaceful demonstrations was the last straw…” (Ukraine crisis is about Great Power oil, gas pipeline rivalry, Guardian)

In other words, Yanukovych rejected an offer from Chevron that the EU and Washington were pushing, and went with the sweeter deal from Russia. According to Ahmed, that pissed off the bigwigs who decided to incite the rioting. (“Putin’s sudden offer of a 30% cheaper gas bill and a $15 billion aid package provoked the protests…”)

Like we said before; it’s just a case of sour grapes.

So, tell me, dear reader: Is this the first time you’ve heard a respected analyst say that oil was behind the rioting, the coup, and the confrontation with Moscow?

I’ll bet it is. Whatever tentacles Wall Street may have wrapped around the White House, Capital Hill, and the US judiciary; Big Oil still rules the roost. The Apostles of the Fossil are the oldest and most powerful club in Washington, and “What they say, goes”. As Ahmed so articulately points out:

“Resource scarcity, competition to dominate Eurasian energy corridors, are behind Russian militarism and US interference…Ukraine is caught hapless in the midst of this accelerating struggle to dominate Eurasia’s energy corridors in the last decades of the age of fossil fuels.” (“Ukraine crisis is about Great Power oil, gas pipeline rivalry”, Guardian)

Did I hear someone say “Resource War”?

As we noted in an earlier article, NWO mastermind Zbigniew Brzezinski characterized the conflict with Russia in terms of cutting off “Western access to the Caspian Sea and Central Asia”. For some unknown reason, America’s behemoth oil corporations think the resources that lie beneath Russian soil belong to them. The question is whether their agents will push Obama to put American troops at risk to assert that claim. If they do, there’s going to be a war.


Mike Whitney is a regular columnist for Veracity Voice

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

Deluded Currency Cultists Believe The Dollar Is Invincible

March 12, 2014 by · Leave a Comment 

At the onset of the derivatives collapse in 2007/2008 it would have been easy to assume that most of America was receiving a valuable education in normalcy bias.

In 2006, the amount of ego on display surrounding mortgage investment was so disturbingly grotesque anyone with any true understanding of the situation felt like projectile vomiting. To watch the smug righteousness of MSNBC and FOX economic pundits as they predicted the infinite rise of American property markets despite all evidence to the contrary was truly mind blowing. When the whole system imploded, it was difficult to know whether one should laugh, or cry.

The saddest aspect of the credit crisis of 2008 was not the massive chain reaction of bankruptcies or the threat of institutional insolvency. Rather, it was the delusional assumptions of the public that the grand mortgage casino was going to go on forever. There is nothing worse than witnessing the victim of a Ponzi scheme defend the lie which has ultimately destroyed him. As much as I am for people waking up to the nature of the crisis, there comes a point when those who are going to figure it out will figure it out, and the rest are essentially hopeless.

The cultism surrounding the U.S. economy and the U.S. dollar is truly mind boggling, and by “cultism” I mean a blind faith in the fiat currency mechanism that goes beyond all logic, reason and evidence.

In recent weeks it has become more visible as global financiers play both sides of the Ukrainian conflict, luring Americans into a frenzy of false patriotism and an anti-Russo-sports-team-mentality. My personal distaste for Vladimir Putin revolves around my understanding that he is just as much a puppet of the International Monetary Fund and international banks as Barack Obama, but many Americans hate him simply because the mainstream media has designated him the next villain in the fantasy tale of U.S. foreign policy.

Open threats from Russia that they will dump U.S. treasury bond holdings and the dollar’s world reserve status if NATO interferes in the Ukraine have been met with wildly naive chest beating from dollar cultists.  I am beginning to see the talking points everywhere.

“Let them dump the dollar, Russia’s holdings are minimal!” Or, “Let them throw out Treasuries, they’ll just be shooting themselves in the foot!” are the battle cries heard across the web. I wish I could convey how insane this viewpoint is, especially in light of the fact that many alternative economic analysts, including myself, have been predicting just such a scenario for years.

Despite the childish boastings of the dollar devout, there is an extraordinarily good possibility that the life of the greenback will be snuffed out in the near term. Here are the facts…

1) Russia will not be alone in its decouple from the dollar system. China, our largest foreign creditor, and India (a supposed ally) have clearly sided with Russia on the Ukranian issue. China has stated that it will back Russia’s play in the event that sanctions are brought to bear by NATO, or if a shooting conflict erupts.

2) China has already been slowly dumping the dollar as a world reserve currency using bilateral trade agreements with numerous countries, including Russia, India, Australia, Brazil, Germany, Japan, etc. These agreements allow FOREX currency swaps and export/import purchases to be made with China without the use of the dollar. China has been preparing itself for a divorce from U.S. economic dependence for at least a decade. The idea that they would actually follow through over political tensions should NOT surprise anyone if they have beenpaying attention.

3) A total drop of the dollar or U.S. treasury bonds by Russia and China would send shock waves through global markets. Russia is a major energy supplier for most of Europe. China is the largest export/import nation in the world. If they refuse to accept dollars as a trade mechanism, numerous countries will fall in line to abandon the greenback as well. The fact that so many Americans refuse to acknowledge this reality is a recipe for disaster.

The only advantage the U.S. has traditionally offered in terms of international trade has been the American consumer, whose unchecked debt spending partly fueled the rise of the industrialized East, not to mention the biggest credit bubble in history. The role of America as a consumer market is collapsing today, however. The mainstream media and the Federal Reserve can blame the steady decline in retail sales on the “weather” all they want, but negative indicators in global manufacturing often take many months to register in the statistics, meaning, this destabilization began long before the days turned cold.

4) China has been shifting away from export dependency since at least 2008, calling for a larger consumer based market at home. This process of enriching the Chinese consumer has almost been completed. The lie that China “needs the U.S.” in order to survive economically needs to be thrown out like the utter propaganda it is.

5) China (and most of the world) has ended new dollar purchases for their FOREX reserves, and has no plans to make new purchases in the future.

6) China executed the second largest dump of U.S. Treasury bonds in history in the past month.

7) Russia, China, and numerous other countries, including U.S. “allies”, have been calling for the end of the dollar’s world reserve status and the institution of a new global basket currencyusing the IMF’s Special Drawing Rights (SDR). Even Putin has suggested that the IMF take over administration of the global economy and issue the SDR as a world currency system. This flies in the face of those who argue that the IMF is somehow “American run”. The truth is, the IMF is run by global banks and no more answers to the U.S. government than the Federal Reserve answers to the U.S. government.

 

8) The Federal Reserve has been creating trillions of dollars in fiat just to prop up U.S. markets since 2008, and we are still seeing a considerable decline in global manufacturing, retail, personal home sales, and a general malaise in consumer demand. Without a full audit, there is no way to know exactly how much currency has been generated or how much is floating around in foreign markets. Any loss of world reserve status would send that flood of dollars back into the U.S., most likely ending in a hyperinflationary environment.

9) Another rather dubious argument I see often is the claim that the Federal Reserve and the U.S. Treasury could simply “negate” a Treasury dump by refusing to acknowledge creditor liabilities. Or, that they could simply print what they need to snap up the bonds, much like the German government tried to do during the Weimar collapse. Unfortunately, this plan did not work out so well for the Germans, nor has it worked for any other nation in history, so I’m not sure why people think the U.S. could pull it off. However, this is the kind of cultism we are surrounded by. These folks think the U.S. economy and the dollar are untouchable.

Yes, the Fed and the Treasury could hypothetically erase existing liabilities, but what dollar cultists do not seem to grasp is that the dollar’s value is not built on Treasury purchases. The dollar’s value is built on faith and reputation. If a nation refuses to pay out on its debts, this is called default. A default by the U.S. would immediately damage the reputation of bonds and dollars as a good investment. Global markets will refuse to purchase or hold any mechanism that they think will not earn them a profit. How many investors today are anxious to jump into Greek treasury bonds, for instance?

Finally, it is unwise to operate on the assumption that foreign creditors will accept dollars as payment on U.S. Treasury bonds if they believe the Federal Reserve is monetizing the debt. When Weimar imploded under the weight of currency devaluation, many foreign governments refused to accept the German mark as payment. Instead, they demanded payment in raw commodities, like coal, lumber and ore. Expect that China and other debt holders will demand payment in U.S. goods, infrastructure, or perhaps even land.

10) Most treasury holdings in foreign coffers are not long term bonds. Rather, they are short term bonds which mature in weeks or months, instead of years. Dollar proponents constantly cite the continued accumulation of treasury bonds by other governments as a sign that the dollar is still desirable as ever. Unfortunately, they have failed to look at the nature of these bond purchases. When China rolls over millions in short term bonds and replaces them with other short term bonds, this does not suggest they have much faith in America’s long term ability to service its debt. It would also make sense that if China had plans to remove itself from the dollar system, they would move into short term bonds which can be liquidated quickly.

11) China is on the fast track to becoming the largest holder of physical gold in the world. Russia has also greatly expanded its gold purchases. Whatever losses they might suffer from a dump of their Treasury bond investments; it will be more than made up in the incredible explosion in precious metals prices that would follow.

12) The most common argument against the dollar losing world reserve status has been that such a shift would be “impossible” because no other currency in the world has the adequate liquidity needed to replace the dollar in global trade. These people have apparently not been paying attention to the Chinese yuan. China has been quietly issuing trillions in yuan denominated bonds, securities and currency around the world. Current estimates calculate around $24 trillion created by the PBOC and the banks under its control.

Mainstream talking heads are calling this a “debt bubble.” However, this debt creation makes perfect sense if China’s plan is to create enough liquidity in its currency in order to offer a viable alternative to the U.S. dollar. Linking the yuan to the IMF’s basket currency would complete the picture, forming a perfect dollar replacement while dollar cheerleading-economists stand dumbstruck.

13) China’s retreat away from dollar denominated investments has left a hole in the U.S. bond market.  Recently, that negative space was filled by an unexpected source; namely Belgium.  A country whose GDP represents less than 1% of total global GDP buying more U.S. bonds than China?  The whole concept sounds bizarre.  Here is the capital coming from?

Think about it this way – Belgium is the political center of the European Union and a haven for international financiers.  There are more corporate cronies, lobbyists, bureaucrats, and foreign dignitaries in Belgium than in all of Washington D.C.  But more importantly, Belgium struck a deal with the IMF in 2012 to begin pumping SDR denominated funds into “low income economies”.  I would suggest that this funding flows both ways, and that now, the IMF is feeding capital into Belgium in order to buy U.S. Treasury Bonds.  That is to say, the IMF is going to start using smaller member countries with limited savings as proxies to purchase U.S. debt using IMF money.

The ultimate danger of the IMF (run by internationalists, not the U.S. government) pre-positioning itself as the primary buyer of U.S. debt is that when the U.S. finally defaults (and it will), the IMF is likely to become the “guardian angel” of the U.S. economy, offering aid in exchange for total administrative control of our financial system, and the institution of the SDR as a world reserve replacement for the dollar.

14) The serious prospect of regional conflict or world war over tensions between the Ukraine and Russia, Japan and China, the U.S. and Syria, the U.S. and Iran, the U.S. and North Korea, etc., could make the effort of exposing the plan to shift economic power into a one world system centralized under the IMF almost meaningless.  How many people will truly care about the financial power grab by banking elites if it drifts under the surface of catastrophic engineered wars?  They’ll be too busy hating and fighting artificially created boogeymen to pay attention to the real globalist culprits.

I have been pointing out for quite a long time that globalists need a “cover event”; a disaster, an economic war or a shooting war, in order to provide a smokescreen for the collapse of the dollar. Alternative analysts have been consistently correct in predicting the trend towards the dump of the dollar. Years ago, we were laughed at for suggesting China would shift towards a consumer based economy and away from U.S. dependence. Today, it is mainstream news. We were laughed at for suggesting that nations like Russia and China would drop the dollar as a reserve currency. Today, they are already in the process of doing it. And, we were laughed at for suggesting that Russia or China would use their debt holdings as leverage against the U.S. in the event of a geopolitical conflict. Today, they are openly making threats.

I have to say, I’ve grown tired of the dollar cultists. How many times can a group of people be wrong and still argue with those who have been consistently right? The answer is that zealots never actually escape their own delusions, even when their delusions lead them and those around them to ruin. I suspect that in the face of complete dollar collapse, they will still be rationalizing the chaos and pontificating on our “lack of understanding” while the theater burns down around them.

Source: Brandon Smith | Alt-Market

The State Department’s New World Order Agenda

March 11, 2014 by · Leave a Comment 

benghazi2.jpg

Flag waving Americans want to believe that their government is on the right side of history. Especially in the realm of foreign policy, the myth that the United States saved the world from despotic tyrants, popularly reflected in the victor’s account of post World War II, is the accepted viewpoint. Hidden from public education is that the New World Order was the actual winner. The specific inception of the globalist forces that originated the sub rosa directions behind formable institutions and governments dates well back over centuries. However, the modern technocratic era allows for the dramatic acceleration of a one-world system imposition, which was never possible in previous times.

Loyal citizens of the old republic want to trust that the State Department, commissioned to serve as the guardian and protector of the country, is conducting foreign policy in the best interests of the nation. There is a reason why the Secretary of State is third in line to succeed the President. That purpose, intended to defend diplomatically and promote the public safety and benefit, has served a very different master for a very long time.

Senator Arthur H. Vandenberg’s notorious adage, “politics stops at the water’s edge”, by no means ever really practiced by the political class a true national defense of the country because it was never the primary goal of the establishment.

The international corporate conglomerate of economic dominance sets the agenda for the imperium empire that deploys the worldwide military hegemony, which feeds upon endless manufactured conflicts and false flag operations. The State Department is the keeper of the keys that formulate policies, which serves only the globalist patrons that control the puppets who make up the federal bureaucracies.

The successors of the sinister cabal that planned World War I and II and created Hitler, Stalin and Mao Zedong are the same prodigy that dictates the constant regional conflicts, which engulfs the United States into destructive involvements that bleed unnecessary blood and squander national treasure.

It is this New World Order that is in charge. State Department lackeys; duped into thinking they serve the cause of freedom, implement tactics and objectives that cause profound hatred towards America by much of the world. Those who know the real score and direct the actual formulation of policy, seek to join the ranks of world dominators, who have no allegiance to country, principles or moral values.

Examine the pattern of State Department betrayal. What a great result from the liberation of Iraq to rid all those weapons of mass destruction. Expanding the opium trade in Afghanistan surely deserves praise. Then there is the killing Gaddafi that resulted in that Benghazi success. Next was the Egyptian coup d’état of Mubarak and the subsequent removal of the democratically elected Muslim Brotherhood government. Finally, leading up to the current campaign against Syria, that is proving more difficult than usual, demonstrates that keeping the orthodox mission in the protection of Israel does not always go smoothly.Yes, that New World Order playbook needs to produce a continuous crop of villains. How else can a permanent and undeviating condition of controlled chaos exist? Managing fashioned circumstances for the benefit of the crown elites is the prescribed procedure of the State Department.

Enter the bona fide “Big Dog”, Vladimir Putin Nemesis of the New World Order. Establishment reports by the Zionist owned mass media is a massive cover-up. The State Department conceived operation to expand the NWO and engulfing Ukraine into the European Union sphere of control goes unreported. The enforcement military machine of the New World Order is NATO. This pathetic attempt to reconstitute the cold war to save a dying economic banksters system is just the latest political propaganda to deceive the public.

The “so called” liberation thugs that engaged in street warfare are part of a western inspired scheme that used George Soros operative fronts as cover. When the US spent $5 billion to destabilize Ukraine, such illegal intervention undermines self-determination at its core. The correct conclusion to draw from such efforts follows:

“The protests in the western Ukraine are organized by the CIA, the US State Department, and by Washington-and EU-financed Non-Governmental Organizations (NGOs) that work in conjunction with the CIA and State Department. The purpose of the protests is to overturn the decision by the independent government of Ukraine not to join the EU.”

“Nuland “was expressing in shortened form the frustration with the inability of the EU to come up with any kind of sugar to make the medicine go down,” said Gati. “What she is saying is we’ve got a crisis here, we’ve got to move, we can’t go by EU business as usual.”

The New World Order is build upon factions of elites that pivot around crux interests, while guiding their own governments into accepting the long-term outlook. One such foundational precept requires that the central banksters manage countries that are already in arrears in their debt payments. With the selection of Arseniy Yatseniuk, the central banker politico as PM for the post-coup Ukraine, the real purpose behind the upheaval becomes clear.

“Yats is also ready to impose IMF austerity on Ukraine, already one of the poorest nations in Europe. “Yatsenyuk is the kind of technocrat you want if you want austerity, with the veneer of professionalism,” Vladimir Signorelli, president of boutique investment research firm Bretton Woods Research LLC in New Jersey, told Forbes last month.

“He’s the type of guy who can hobnob with the European elite. A Mario Monti type: unelected and willing to do the IMFs bidding.”

The announced EU $15B aid package to provide much needed cash to Ukraine accelerates the intrusion of NWO dominance into the heartland of the former Soviet empire. As the State Department Is Preparing Sanctions Against Russia, the NeoCons and International Libs in Congress eagerly want to ratchet up the appearance of a new cold war to divert away from domestic woes and a collapsing war on the terror hoax.Yet the internal motivations out of the United States government carry little weight, when viewed within the context of the long-term master plans, for extending the current New World Order into a non-compete global dominion. Pushing Russia into the arms of an already hostile China certainly does not serve the security of America. However, that is exactly the probable outcome from getting involved, (like this designed covert regime change) in the internal affairs of Eastern Europe.

Lest one forgets, that Communism was the invention of the international banksters, recognize that authoritarianism is the normal condition of human governments. The totalitarian collectivism that the phony western democracies practice produces corporate fascism. This is the preferred version of global rule that the New World Order seeks.

Therefore, when the non-elected pawns of the transitional Ukrainian NWO protectorate states, Crimea ‘was, is and will be an integral part of Ukraine’, you get the Yats effect of a CNN reported illusion. For the reality, the RT coverage that Sevastopol and Crimean parliament vote to join Russia, referendum to be held, describes the actual circumstances.

The pathetic hypocrisy when Obama says Crimea referendum would ‘violate international law’, fails to account for the capricious attitude and deadly methods employed to oust the Viktor Yanukovych government. What legitimate international law standard did the snipers use to kill both police and protestors in Kiev?Playing king maker is a very dangerous game that the State Department undertakes at its own risk. Applying these same tactics, what will be the response when the liberation dissenters surround the capital and start a national demonstration to oust the DC criminal class from power? Surely, calling out the tanks to restore the homeland order will be the official response.

With every assault orchestrated to establish a government regime change favorable to the New World Order, the prospects of meaningful resistance diminishes. When the State Department leads the parade to dump defiant state leaders, the actual legitimacy of our own government’s authority evaporates.

Calling on the world community for moral permission to eliminate opposition states is like applying for a loan from the World Bank. Strings are attached that only benefit the shylock.

One needs to distinguish the genuineness of Western Civilization from the immorality of US/EU/NATO interventionism. Permanent war is the lifeblood of the New World Order. The last thing this planet needs is a global empire, which removes any country that rejects and resists the NWO feudalist model. The essence of true liberty demands that ethnic populations organize around and among their own kind.


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

Sartre is a regular columnist for Veracity Voice

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