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Class Warfare Saps The Economy: Why Abenomics Flopped

July 5, 2014 by · Leave a Comment 

By every objective standard, Abenomics has been a complete flop. Household spending has plunged, wages have dropped for 23 months in a row, inflation is on the rise, the number of workers who can only find part-time jobs has ballooned to 38 percent, and most economists now expect 2nd quarter GDP to shrink to minus 4 percent or worse. So where’s the silver lining?

There isn’t one. It’s all hype. In fact, the only part of Prime Minister’s Shinzo Abe’s economic strategy that has succeeded has been the public relations campaign, which has bamboozled the Japanese people into believing that pumping trillions of yen into financial assets will lead to widespread prosperity. Good luck with that. We can see how well that worked in the US where stock prices have nearly tripled in the last five years, but the real economy is still flat on its back. So why would quantitative easing (QE) work in Japan when it hasn’t worked in the US?

It hasn’t, and it won’t. The whole thing is a farce. But political leaders like Prime Minister Shinzo Abe and their central bank lackeys continue to promote this absurd flimflam because it boosts profits for their constituents. That’s what this nonsense is all about; trying to find new ways to enrich the parasite class during a “self induced” long-term slump. The only problem is that everyone else is worse off than before, mainly because the silver spoon slackers at the top of the heap are getting a bigger and bigger share of the pie. That just leaves a few crumbs for everyone else, which is why economic activity has slowed to a crawl. It’s because the people who typically spend money and rev up the economy, have no money to spend. It’s that simple. Check out this blurb from the Testosterone Pit:

“The Abe administration is doing everything in the book to bolster the fortunes of Japan Inc.: offering tax cuts, more public works, and stimulus packages, snatching the Olympics by hook or crook, and cranking up inflation. In April, prices for all items soared 3.4% from a year earlier, and goods prices a confiscatory 5.2%. Yet wages were stuck in the mire, and adjusted for inflation, they plunged…

Then came the consumption tax hike, a broad-based tax that impacts consumers and businesses across the economy. The months before the effective date of April 1, consumers and businesses binged to save that extra 3% in taxes on big-ticket items, and businesses rang up sales faster than they could count.” Japan Inc.’s Worst Quarterly Outlook Since The 2011 Earthquake, Testosterone Pit

How do you like that? So, with the economy already on the ropes, class warrior Abe decided to squeeze working people even more by pushing through a regressive sales tax that put household spending into a nosedive. (Get a load of this ski-jump chart of household spending)

But while Abe has been raising taxes on the workerbees, he’s cutting them for his crooked corporate buddies. As part of his dubious “growth strategy” the Japanese PM has promised to slash corporate taxes from 35 percent to 29 percent, a move that will reduce revenues and increase Japan’s humongous public debt even more. (Japan’s debt is already a gargantuan 240 percent of GDP.) Many analysts think that Abe’s move could trigger a panic in the bond market if investors start to think he’s not serious about addressing the debt. Even so, that’s a risk that Abe’s willing to take as long as it saves his cheesy corporate friends a few shekels.

Of course the best way to pay down the debt, is through economic growth. But that can’t be done when wages are either stagnant or dropping as they are in Japan. Check this out from mni market news:

“Base wages, the key to a recovery in cash earnings, fell 0.2% on year, marking the 23rd consecutive decrease…. In real terms, total wages slumped 3.1% in April, showing the annual inflation rate above 1% is hurting household income in the absence of substantial wage growth and in light of the sales tax hike to 8% from 5% on April 1″. (Japan Apr Total Wages Post 2nd Straight Rise; Base Wages Down, MNI Market News)

The economy can’t grow when demand is weak, and demand is perennially weak in Japan because wages and incomes are shriveling. That means less personal consumption, less economic activity, and smaller GDP. Recently, the situation has gotten worse due to the Bank of Japan’s money printing operations which have increased inflation which has reduced worker’s buying power. Check this out form the Japan Times:

“Consumer prices climbed in May at their fastest pace in 32 years, swelled by the hike in the consumption tax and higher utility charges that are squeezing Japanese budgets as wage gains remain limited.

Consumer prices excluding fresh food but not energy, rose 3.4 percent from a year earlier, the Statistics Bureau said Friday…Household spending subsequently sank 8 percent, more than the forecast fall of 2.3 percent, separate data showed…

All 14 major gas and electricity companies raised prices from May to the highest level since the current pricing system began in May 2009, according to the Asahi Shimbun. Tokyo Electric Power Co. announced a price hike of 5.3 percent in May for households, reflecting the higher tax, rising energy costs and other factors.” (Prices climb most in 32 years as wages limp along, Japan Times)

So, with prices rising and wages stagnant, Japan is experiencing what most analysts anticipated when Abe first announced his plan to hike the sales tax, that is, household spending has dropped precipitously increasing the likelihood of another recession. Abe decided that pushing more of the government’s operating costs onto working people was more important than the health of the economy.

Naturally, Abe’s policies have had a catastrophic effect on the working poor. As we noted earlier, the number of part-time workers in Japan has grown dramatically over the last few years. According to Reuters,

“part-time, temporary and other non-regular workers who typically make less than half the average pay has jumped 70 percent from 1997 to 19.7 million today — 38 percent of the labor force.”

Abenomics has made life considerably harder for these people due to the higher taxes, soaring prices, and reduced welfare benefits. The data show that Japan’s poverty rate is “the sixth-worst among the 34 OECD countries” while “child poverty in working, single-parent households is by far the worst at over 50 percent, making Japan the only country where having a job does not reduce the poverty rate for that group.” (Japan’s working poor left behind by Abenomics, Reuters)

Abe’s attack on working people has intensified in the last few weeks as he’s unveiled parts of his “third arrow” of structural reforms. Along with cutting corporate taxes, Abe wants to take the Government Pension Investment Fund (GPIF), “the world’s deepest pot of savings”, and shove it in the stock market. George W. Bush wanted to do the same thing with Social Security but abandoned the idea after Lehman Brothers collapsed and the economy tanked. Now Abe is pushing the same loony plan which will put the long-term security of Japan’s elderly at risk just to boost profits for his voracious plutocrat friends.

Abe also wants to eliminate overtime pay, make it easier for corporate bosses to fire workers, and allow foreign workers to care for children and the elderly in a series of “special economic zones”. All of the so called “reforms” are just ways of extracting more wealth from labor by loosening regulations. None of them have anything to do with increasing productivity, boosting capital investment or sparking more innovation. They’re all about wringing every last dime out of the people who are already so broke they can barley keep their heads above water.

On top of it all, Abe’s easy money policies have ignited the same flurry of “irrational exuberance” they have in the US. As Marketwatch notes, “A greater number of investors are demanding increased dividends and share buybacks than (ever) before.”

Stock buybacks are a particularly execrable activity that pumps up stock prices without adding anything to productivity. It’s pure-unalloyed asset inflation prompted by insanely loose monetary policies. Here’s more from Marketwatch:

“Japanese companies … are sitting on a record amount of cash: about $3 trillion at the end of March …

A number of large Japanese companies, including Toyota, NTT Docomo and Mitsubishi Corp., have announced plans for big stock buybacks, which improve shareholder returns by increasing the value of the remaining shares outstanding.” (In Japan, dividends, buybacks take the stage, Marketwatch)

Yipee! Shareholders are getting richer on Abe’s idiot programs. Too bad they’ll be gone when the bubble bursts and the system plunges back into crisis.

What a screwball system.

Abenomics has nothing to do with prosperity, growth or even deflation. That’s all BS. The policy is designed to do exactly what it does, generate hefty profits for slacker speculators and corporate muck-a-mucks while everyone else faces higher prices, lower wages and a dimmer future.

If that’s not class warfare, then what is it?


Mike Whitney is a regular columnist for Veracity Voice

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

Impeachment Refusal Means Heads Will Roll

June 29, 2014 by · Leave a Comment 

In case you are a rabid partisan supporter of the Obama administration, or forgot your history, Richard Nixon was charged for ostensibly the same offense, that President Obama’s loyal minion Lois Lerner oversaw. Joseph Curl writes in the Washington Times, IRS scandal gets Nixonian: The 18½-minute (or 26-month) gap.Article 2 of the Articles of Impeachment against Nixon charged that he:

“endeavored to obtain from the Internal Revenue Service, in violation of the constitutional rights of citizens, confidential information contained in income tax returns for purposes not authorized by law, and to cause, in violation of the constitutional rights of citizens, income tax audits or other income tax investigation to be initiated or conducted in a discriminatory manner.”

That’s exactly what the Internal Revenue Service did under President Obama before the 2012 election.

There isn’t much dispute there. The IRS sought to delay tax-exempt status for conservative and tea party groups, and succeeded (as the government often does when fighting its foes). So Congress, which has oversight of all things government, asked for all correspondence among the major players.”

So when an IRS Source: Lerner’s Hard Drive Likely Destroyed, all you can do is ask if any of Rose Mary Woods’ relatives are Democrats and still work for the federal government establishment. If Watergate brought the country to the constitutional brink, what exactly would Obama have to do in order for Congressional House impeachment and a Senate trial and removal from office?Just examine some of the most egregious crimes, 25 Violations of Law By President Obama and His Administration. However, in the post Clinton impeachment culture, the career political class does not have the stomach to live by and enforce most provisions of constitutional law.

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The press revolving door that Jay Carney used to drop the charade that he was a real journalist at Time to become a Whitehouse Press Secretary lap dog is a good indication that the Fourth Estate just does not has the zeal to do a “Woodward and Bernstein” on Obama. No doubt, media mouthpieces are proficient with deep throat fellatio, but their “PC” ethics require that their trade be applied solely as the serviceof their multiracial POTUS. The notion of conducting serious investigational reporting that could lead to the removal of a treasonous crook is not in their newspeak playbook.By any historic standard the economy is plummeting, the government is despotic, the culture is in denial and the world is collapsing. The Obama presidency has created an administration that is a total failure. Incompetency in purpose, policy and execution is beyond belief. The country is imploding on every level. The only rational conclusion is that Obama’s mission has always been the intentional destruction of the nation.

Back in 2011, Charles Krauthammer wrote an essay, Obama’s Louis XV budget that received widespread coverage. Louis XV was king of France from 1715 to 1774. The analogy needs a little appreciation of pervasive failures within the French monarchy during this era.Dr. Krauthammer reviews the Obama’s budget complexities and the consequences for future administrations.

“Yet for all its gimmicks, this budget leaves the country at decade’s end saddled with publicly held debt triple what Obama inherited.

A more cynical budget is hard to imagine. This one ignores the looming debt crisis, shifts all responsibility for serious budget-cutting to the Republicans – for which Democrats are ready with a two-year, full-artillery demagogic assault – and sets Obama up perfectly for reelection in 2012.”

Now we all know that the provincial peasants picked “The Beloved” Obama for a second term. Grasp the similarities. “Most scholars believe Louis XV’s decisions damaged the power of France, weakened the treasury, discredited the absolute monarchy, and made it more vulnerable to distrust and destruction.”

 

For an outstanding summary from Afterburner with Bill Whittle, view the video, Le Deluge – Obama is Quickly Becoming Louis XV. “Obama is figuring that it doesn’t matter what horrendous things he does to this country, because after him will be a deluge anyway. He’s becoming entirely comparable to France’s Louis XV.”

Both Krauthammer and Whittle seem to be describing a society in decay awaiting a day of reckoning. However, the royal rule of Barack Hussein Obama II continues on its merry way with little righteous outrage from the masses, which are too busy SNAP eating “la croûte de pâté” (or the crust of the pâté) their Supplemental Nutrition Assistance Program rations.

Many academics argue that Louis XV was unequal to the high expectations of his subjects. “Historians have depicted this ruler as one of the weakest of the Bourbons, a do-nothing king who left affairs of state to ministers while indulging in his hobbies of hunting and womanizing.”

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Gossip has it from the lips of Fred DeRuvo that palace intrigue in the Obama court has strange bedfellows.

“Now, all of a sudden, we’re to learn that Barack Obama is a closet womanizer, a real flirt? Do you think it’s possible that the entire event was created in the labs of “Jarrett Amalgamated” to throw people off the scent, to make us stop talking about the fact that he may very likely be gay?

The idea that Obama likes woman is preposterous! The idea that he’s such a flirtatious womanizer is also preposterous. The idea that Michelle Obama is planning on divorcing him is beyond preposterous! It’s not going to happen because she has a ton to lose.

Who’s going to pay for all of her vacations and birthday bashes once Obama is no longer president? Who’s going to pay for her home and lessons to learn to drive a car and then buy a car? Who’s going to pay for her god-awful choice in dresses and pantsuits?”

Nonetheless, we all know that the “Big Dog”, immunized the Presidency from sex scandals and since Congress will not impeach for serious trespasses of the law, probable expectations are that Obama’s weak and ineffective rule will just accelerate the general decline, culminating in a final oppressive oligarchy.

When the deluge hits, the next commander in crime will share similarities with Louis XVI, but do not expect that a fatal sentence for treason is likely. Ending the imperial presidency will never come with a helicopter ride into retirement. Woefully, after Nixon, the legacy of regal executive administrations never subsided, even under the inept Jimmy Carter.Louis XVI indecisiveness led some elements of the people of France to view him as a symbol of the perceived tyranny of the Ancien Régime. Today, the American public has the entire establishment to contend with and overthrowing an aristocracy looks bloody easy in comparison. Dave Hodges, of the Common Sense Show chimes in on a weird and frightening accusation from the now deceased Ted Gunderson, Retired FBI Agent Tells Militias Feds Have Set Up 30,000 Guillotines. Mr. Hodges asks:

“Why in God’s good name would this government import 30,000 guillotines as Gunderson claimed? Oh, I know that some of the sheep are now looking up from the ground and have just said “there aren’t are any guillotines in the United States.” Then please tell me, sheep of America, why did Representative Doug Teper, of the Georgia Legislative Assembly (Democrat) introduced a bill which will supplant the method of execution, the electric chair, with the guillotine?”

The next observation is even more blood chilling.

“Everyone that I have spoken to agrees that the guillotine is highly efficient. Most everyone I have talked with stated that organ harvesting will indeed be even a bigger business and the guillotine is the most efficient killing machine to that end. Some of my sources stated that the next phase of the transhumanism experiments and developments requires a severed human head to facilitate the mixing of humans and animals into one sentient being. Further, futuristic DARPA robots will have human heads after the initial purge and subsequent executions. This makes sense because after the head is severed, the eyes blink and signs of life continue for up to a minute. This would allow a team to “freeze” and to preserve the head for whatever purpose.”

The reluctance of impeachment for the current imposter, occupying the oval office, is putting the terminal NWO kismet plot in motion. Popular legend holds that Louis XV said, “After me, the flood” (“Après moi, le déluge”). Well, the tsunami after Obama will make the reign of Louis XVI look tame.

The constitutional republic, long ago buried, shows few signs of resurrection. However, the authoritarians that administer this reign of terror have assigned a cell in a personal Bastille for dissenters. The cry, vive la liberté (long live freedom) has no place in the Totalitarian Collectivism of the globalist worldwide empire. Disassembling the United States is necessary before the New Regime can replace the vestiges of individual liberty and inherent autonomy. Barack Obama is an arrogant buffoon that does the biding of his illuminati elite elders, who are modern day descendants of the same masterminds behind the French Revolution. Ignoring justified impeachment proceedings is capitulation to the slaughter of our way of life. Lop off the cancer of imperious presidencies.


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

Central Bank Stock Buying Binge

June 29, 2014 by · Leave a Comment 

Central banks have shifted into stocks and are buying up everything that isn’t bolted to the floor.

That’s the gist of the story that breathlessly appeared in the Financial Times about a week ago and swept across the blogosphere like a Santa Anna brushfire. And there’s some truth to it too, if taken with a large grain of salt. Here’s a clip from the Omfif’s report the FT’s cites in the article:

“A cluster of central banking investors has become major players on world equity markets,” says a report to be published this week by the Official Monetary and Financial Institutions Forum (Omfif), a central bank research and advisory group. The trend “could potentially contribute to overheated asset prices”, it warns.” (Financial Times)

So, there you have it; stocks are rising, central banks are buying stocks like mad, therefore, central banks are driving the market. That’s all there is to it, right?

And we’re not talking chump change here either. According to the Omfif”s press release “global central banks and public sector institutions now account for an eye-watering “$29.1tn worth of investments … in 162 countries.”

Hmm. It’s easy to read that statement and assume that central banks have purchased $29 trillion in stocks, isn’t it? That’s what the folks over at Zero Hedge did. Check out the headline they ran shortly after the story appeared in the FT: “Cluster Of Central Banks” Have Secretly Invested $29 Trillion In The Market” (Zero Hedge)

But that’s not what the press release says, is it? It says “global central banks and public sector institutions”. There’s a big difference between the stocks a bank buys and all the investments in public pension funds, 401Ks, sovereign wealth funds etc. A huge difference. It looks like someone might be engaging in a bit of fear-mongering to get a rise out of readers.

That’s not to downplay the fact that CB’s are distorting prices by playing the market. They are. No one disputes that. Just like no one disputes that central banks should limit their activities to doing their job, which is maintaining price stability. (We’re deliberately omitting “full employment” since the Fed thinks it’s a big joke anyway.) But, hey, everyone knows these guys are a dodgy lot to begin with, so it’s hard to get whipped up into a lather every time they get caught in some new flimflam. Besides CB stock purchases are likely insignificant compared to corporate stock buybacks which are presently just-south of $600 billion per year. CB stock purchases are no where near that, regardless of what you read at Zero Hedge. Check this out in the Wall Street Journal:

“Last year, the corporations in the Russell 3000, a broad U.S. stock index, repurchased $567.6 billion worth of their own shares—a 21% increase over 2012, calculates Rob Leiphart, an analyst at Birinyi Associates, a research firm in Westport, Conn. That brings total buybacks since the beginning of 2005 to $4.21 trillion—or nearly one-fifth of the total value of all U.S. stocks today.” (Will Stock Buybacks Bite Back?, Wall Street Journal)

Yikes. “$4.21 trillion”! Now that’s what you call froth.

Anyway, the reason CBs are buying equities is to hedge their losses on the mountain of low-yielding bonds they purchased in their effort to recapitalize the insolvent banking system. They’re already taking it in the shorts for an estimated $250 billion per year, and when rates start marching upward, (as they inevitably will) they’re going to be bleeding red ink from both eyeballs. That’s why they want to diversify their portfolio; to staunch the hemorrhaging. Even so, the whole matter looks shabby and underhanded, which of course it is. It also calls into question present stock valuations which have been soaring with the zero rates, QE and positive earnings reports, the trifecta which pushes equities into the stratosphere regardless of the shitty condition of the underlying “real” economy. So–just like everyone else–the banks want to get on the winning side of the trade. But what a firestorm they’ve set off with these latest shenanigans! Here’s a sample of the outrage you’ll find on the Internet. This is from a Bill Bonner article titled “Proof the Stock Market Is Being Rigged”:

“We are still reeling.
Yesterday, we reported that central banks are major buyers of stocks…
We hardly know where to begin…

Outraged, we sputter and spit… we search for words… we look for metaphors and narratives… anything that will put this extraordinary situation in the right light…

Ah yes… central banks create new money… it gets passed around the financial community in many ways… and ultimately ends up in the equity markets…

In short, a grand slam of deceit. The World Series of financial catastrophe will follow. But that could be a long way off.” (Proof the Stock Market Is Being Rigged, Bonner and Partners)

“A grand slam of deceit”?

Fair enough. A little hyperbolic, but that’s to be expected, right? But, c’mon now, given the long list of scandals in the last few years–High-Frequency Trading (HFT), “toxic” mortgage-backed securities, Libor, London Whale, Robo-signing, structured finance, Madoff etc etc–it’s hard not to be little blasé about the whole deal, isn’t it? I’m not sure where Bonner’s been, but if you were to ask Joe Blow on the street, whether he thought the “market was rigged or not”, he’d undoubtedly nod his head affirmatively as if it was the most obvious thing in the world. Because it is the most obvious thing in the world. Heidi Moore summed it up pretty well in a recent article at the Gurdian. She said:

“Most Americans don’t think much about the stock market, and that’s just fine with Wall Street. Because once you wake up to how screwed up the stock market really is, the financial industry knows you’re likely to get very nervous and take your money out.

Many are catching on: between 2007 and 2014, investors pulled $345bn from the stock market. E-Trades are down and worries are up, with 73% of Americans still not inclined to buy stocks, five years after the financial crisis…

Let’s get one thing straight: Investor confidence is not the problem. The screwed-up stock market is the problem. It’s time to break down the polite fiction that investing in the stock market is something that sane, rational, sensible people do. It is a high-risk contact sport for your money…

The US stock market depends entirely on the ignorance of regular people who are supposed to just shovel their money into retirement funds and 401(k)s, pay a whopping one-third of your retirement in fees to high-priced managers, and never whisper a complaint.

It’s a wonder that anyone (trusts the market) at all.” (Wall Street and Washington want you to believe the stock market isn’t rigged. Guess what? It still is, Heidi Moore, Guardian)

The market is totally rigged from stem to stern, which is why it is so hard to feign outrage at this latest sign of corruption. It’s just par for the course. What we found more interesting, was the OMFIF’s contention that the experimental monetary policies, the centrals banks initiated to deal with the Financial Crisis, have changed the system to what the author calls “state capitalism”.

“Whether or not this trend is a good thing”, he opines, “may be open to question. What is incontestable is that it has happened”.

While you can’t expect the media to cover something like this, it’s certainly worth mulling over. The fact is, CBs have taken over economic policy altogether. They’re running the whole shooting match. The various congresses and parliaments across the western world now merely act as a rubber stamp for the austerity measures demanded by their corporate bosses. Fiscal policy is a dead letter in the US, Japan, Australia, Canada, UK and the Eurozone. Everywhere the bank cartel has extended it’s grip, fiscal policy has been jettisoned altogether. It’s bailouts and lavish subsidies for the 1 percenters and belt-tightening, shock therapy for everyone else. Isn’t that how it works? State Capitalism isn’t a conspiracy theory. It’s just class warfare taken to the next level. Check this out from Dave Marsh at Marketwatch:

“Central banks’ foreign-exchange reserves have grown unprecedentedly fast, especially in the developing world. The same authorities that are responsible for maintaining financial stability are often the owners of the large funds that add to liquidity in many markets…

Evidence of an increase in equity-buying by central banks and other public-sector investors has emerged from a survey of publicly owned or managed investments compiled by the Official Monetary and Financial Institutions Forum (OMFIF)… There are worries that central banks may be over-stretching themselves by operating in too many areas.

Jens Weidmann, president of Germany’s Bundesbank — spoke yearningly last week of the need for “central banks to shed their role as decision-makers of last resort and, thus, to return to their normal business.”

He said this “would help to preserve the independence of central banks, which is a key precondition to maintaining price stability in the long run.” (Central banks becoming major investors in stock markets, Dave Marsh, Marketwatch)

You might want to read that first part over again to savor what the author is saying. Here it is: “The same authorities that are responsible for maintaining financial stability are often the owners of the large funds that add to liquidity in many markets.”

That’s what you call corruption with a capital “C”. But then the author does a 180 and waxes-on about “preserving the independence of central banks, which is a key precondition to maintaining price stability in the long run.”

Right. The whole independence thing is a big joke. Why would anyone in their right mind bestow such extraordinary powers (“independence”) on a group of voracious, cutthroat bankers who have repeatedly shown that they can’t be trusted?

Huh?

It’s insanity. This latest outrage just proves that the central bank system needs to be either reformed or terminated. Preferably, terminated.


Mike Whitney is a regular columnist for Veracity Voice

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

Why I Hate Soccer

June 16, 2014 by · Leave a Comment 

This article will be a departure from my usual fare. I will not claim there is some Absolute Truth deeming soccer the bane of humanity’s sports. I do not contend that some objective, divine standard places it in Dante’s ninth circle of athletic arenas, though I wish I could. Sport is a matter of taste, and, as G.K. Chesterton said (okay, so this isn’t a complete departure for me — I’m quoting Chesterton), “There are no uninteresting subjects, only uninterested people.” I get it. And I, I confess, like golf. So mock away. But in this piece I’ll ditch the Mr. Spock act, let my human side emote, may even contradict myself, and will say something.

I hate soccer.

I hear there’s something going on right now called the World Cup. I hear it’s in Brazil. I hear other pundits, such as Stephen Webb and Rick Moran, are commenting on it, taking opposing views. And I hear that the score between the two is 0-0 after 2000 words. But I won’t claim that soccer is un-American as did Webb or like Moran, claim it’s fun. I’ll say something truly intellectual.

I hate soccer.

When I grew up in the Bronx in the ‘70s, few played that infernal game. I was exposed to it, but could never relate. Why can’t I use my hands? I mean, I have hands. They’re remarkably dexterous appendages. They exist to manipulate all manner of things in the physical universe. I preferred tennis and ping pong to handball, sure, but that was understandable. The racquets and paddles are tools that facilitate the striking of a ball; with them you can achieve a degree of velocity and spin — which could curve the ball in fascinating ways — otherwise impossible. And velocity and spin are cool. It’s as if I need to pound a nail: I take my hand and pick up a hammer. I don’t use my foot.

That’s the crux of this entirely taste-oriented matter. It goes without saying that professional soccer players are highly skilled. But to me it’s like seeing those unfortunate double amputees who’ve learned to paint or play the piano with their toes. I say, “Wow, it’s amazing how man’s spirit can overcome.” Then I change the channel and look for something that can fill the hour’s remaining 59 minutes and 35 seconds.

So if soccer were in the Special Olympics, I’d understand it. Or maybe if it were played by birds. But why do human beings, with their particular anatomical configuration, want to use their feet for a task performed infinitely better by the hands? It’s no wonder the scoring in soccer tends to hover around Joe Biden I.Q. territory. How many baskets would be sunk in the NBA if the players had to kick the ball through the hoop, even if they could block only with their heads? How poor would the scores be in golf if you had to kick the ball down the fairway? A braggart may say, “I can beat you with one hand tied behind my back.” Soccer players try to beat each other with both tied.

Mr. Moran correctly pointed out that, contrary to Mr. Webb’s assumption, soccer is now tremendously popular in the US. I must attribute this, in part, to the influx of people from lands where they can’t afford to play much of anything but soccer. And while I’ve often “inveighed” against immigration, to use the word Rep. John Conyers (D-Soccer) did when citing my work upon waking up briefly in the House, our foreign soccer imports might be the best reason to rethink our immigration regime. “Do you play socc…er…fútbol, amigo?

Si?

See ya’.”

Check the deportation column.

Call it the Immigration and Recreation Reform Act of 2014. Entry into the US would be limited to those with a history of participation in polo or yacht racing.

So save those feet for what they were meant to do, such as kicking illegals out of the country, kicking Cantors out of office and kicking the economy into gear. A hand is a terrible thing to waste.


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

He can be reached at: SelwynDuke@optonline.net

Selwyn Duke is a regular columnist for Veracity Voice

The Las Vegas Shootings, Obama’s Dumping of Illegal Aliens, And Eric Cantor’s Primary Defeat

June 15, 2014 by · Leave a Comment 

Three Pertinent Observations

*The Las Vegas Shootings

Predictably, the mainstream media is doing its best to try to depict the couple who killed three people (including two police officers) in Las Vegas as right-wing militia-types. No doubt, the Obama administration will try to conjure up more gun-control. The media is already attempting to link the killers to the brave citizens who defended the Bundy family a couple of months ago. But the truth is, the citizen-militia in Bunkerville would not even allow this couple to gain access to that event, as they were concerned about the couple’s disconcerting propensities. But, of course, the radical left-wing hate group, the Southern Poverty Law Center (SPLC), won’t tell you that.

Watch for Eric Holder and the U.S. Justice Department to use the Las Vegas shootings as an excuse to harass and harangue conservative groups, Tea Party groups, Second Amendment groups, and Patriot groups. And, of course, the media will serve in its typical capacity as propagandists against all things conservative.

Furthermore, the administration’s war against freedom-minded people takes on a chilling dimension when one reads this report:

“The Justice Department is resurrecting a program designed to thwart domestic threats to the United States, and Attorney General Eric Holder says those threats include individuals the government deems anti-government or racially prejudiced.

“The Domestic Terrorism Executive Committee was created in the wake of the 1995 Oklahoma City bombing but was scrapped soon after the 2001 terrorist attacks as intelligence and law enforcement officials shifted their focus to threats from outside the country. The committee will be comprised of figures from the FBI, the National Security Division of the Justice Department and the Attorney General’s Advisory Committee.”

See the report at:

Now Thought Crime Is Terror In U.S.?

However, the fact is, when one examines the political bents of recent mass killers, he or she will find that the majority of them have come from left-wing communities and ideologies. But the media totally ignores that part of the story. They also ignore the common thread of most of these killers being on psychotropic prescription drugs. And they also conveniently overlook the fact that the vast majority of these kinds of killings took place in “gun-free” zones.

On a personal note, I have serious questions about the way in which so many of these mass shootings take place including: witnesses reporting multiple assailants, even when eventually only one shooter is said to have done it; the vast majority of these assailants ultimately killing themselves; the way the media is unwilling to investigate contradicting evidence and testimony; and the way law enforcement seems more inclined to cover up evidence than actually trace it all the way to its source.

*Obama’s Dumping of Illegal Aliens in Arizona and Texas

It is now abundantly clear that the Obama administration has chosen to completely ignore federal immigration laws. His administration is mostly refusing to deport illegals–even criminal ones. It is also encouraging the release of thousands of criminal illegals (even violent ones) from America’s prisons and jails.

See this report:

U.S. Immigration Officials Released Thousands of Violent Criminals in 2013, Report Says

And, now we learn that the administration is manipulating the “dumping” of thousands of illegals, many of whom are children, in the traditional Republican stronghold states of Arizona and Texas. Through Obama’s public statements and comments, the administration has willfully encouraged multiplied thousands of illegals to cross into America’s border states, especially the two states mentioned above.

But why isn’t the Republican Party challenging President Obama on this egregious and blatant illegal activity? The GOP is already poised to pick up many seats in both the U.S. House and Senate this fall due to the anger and resentment of the country against Obama’s dubious and nefarious policies. One would think that Republican leaders on The Hill would pounce on Obama’s immigration debacle. Instead, Republican leaders are assisting the administration’s pro-illegal alien policy by pushing amnesty for illegals–which only serves to facilitate more illegals pouring over the southern border.

Investors.com reports, “Republicans should take the president to task for unlawfully enticing thousands of ‘unaccompanied illegal children’ from Latin America to cross the border. Instead, a GOP leader asks for an amnesty deal.

“What is at the top of the Republican wish list? A vibrant economy? An America strong and respected in the world? Capturing the Senate? A Republican elected to the White House in 2016?

“Nah. The GOP wants amnesty for illegal aliens.”

The report goes on to say, “Democrats use immigration to smear Republicans as racists. Expanding immigration will give Democrats millions of new votes in the coming decades, destroying forever the political forces that oppose big government.

“The more than 90,000 children who crossed the Mexican border into the U.S. and were apprehended this year, and the more than 140,000 expected next year, could and should turn the immigration issue into a GOP weapon against Democrats.

“Instead of sending them back home to their parents, Attorney General Eric Holder made it a priority to hire taxpayer-funded lawyers for them. Why don’t we hear Cantor, Ryan and other GOP leaders shout that Democrats are exploiting children to further their political agenda?”

See the report here:

Child Alien Crisis Is Obama’s Fault, But GOP Won’t Pounce

Why, indeed?

House Majority Leader Eric Cantor is a major proponent of amnesty for illegals. (Thankfully, Republican voters in Virginia have just thrown Cantor out of Congress and nominated a Tea Party conservative to replace him. More about that in a minute.) So is Republican Speaker of the House, John Boehner. So are republicans John McCain, Lindsey Graham, Marco Rubio, Jeb Bush, Paul Ryan, etc.

If the Republican Party helps Obama pass amnesty for illegals into law, as Boehner and Company say they will do this summer, Arizona and Texas will be inundated with millions of illegals–even more than they already are. Do Republican leaders really believe that illegal aliens are going to vote Republican? If they truly believe this, they are absolutely and positively deluded. So, is Boehner and Company willing to feed Arizona and Texas to the proverbial wolves? Do they think they can win a presidential election without carrying the State of Texas? Again, if they do, they are deluded.

Or, is Boehner and Company really more concerned about appeasing big-money interests at the Chamber of Commerce? Do they even care one whit about GOP victories? As long as they believe themselves to be the personal recipients of the graces of Big Money, why should they care which political party wins an election? At the national level, the differences between the two major parties are negligible, anyway.

*Eric Cantor’s Primary Defeat in Virginia

Here is how The New York Times covered the story:

“In one of the most stunning primary election upsets in congressional history, the House majority leader, Eric Cantor, Republican of Virginia, was soundly defeated on Tuesday by a Tea Party-backed economics professor who had hammered him for being insufficiently conservative.

“The result delivered a major jolt to the Republican Party–Mr. Cantor had widely been considered the top candidate to succeed Speaker John A. Boehner–and it has potential to change both the debate in Washington on immigration and, possibly, the midterm elections.

“With just over $200,000, David Brat–a professor at Randolph-Macon College in Ashland, Va.–toppled Mr. Cantor, repeatedly criticizing him for being soft on immigration and contending that he supported what critics call amnesty for immigrants in the country illegally.

“Republicans were so sure that Mr. Cantor would win that most party leaders had been watching for how broad his victory would be. His defeat will reverberate in the capital and could have major implications for any chance of an immigration overhaul.”

See the report at:

Eric Cantor Defeated by David Brat, Tea Party Challenger, in G.O.P. Primary Upset

Cantor’s defeat offers a glimmer of hope for America’s future. It is my studied observation that these neocon Republicans are far more dangerous to our liberties than are Democrats. When forced to choose between a Democrat and a neocon Republican, the “lesser of two evils” vote is for the Democrat. We have such an example here in my home State of Montana.

In the GOP primary for U.S. House of Representatives, a neocon Republican named Ryan Zinke won with just 33% of the vote. That means that some 67% of Montana’s Republican voters chose someone else over Zinke–all of whom were decidedly more conservative than Zinke. Unfortunately, Montana does not have a run-off system; otherwise, there is absolutely no question that Zinke would have been trounced in any subsequent run-off.

If Zinke wins in November, his track record in the Montana State Senate demonstrates that he will be the quintessential neocon Republican in Washington, D.C. Any influence he would have in Congress would only serve to take the House leftward. I absolutely refuse to vote for a neocon like Ryan Zinke. A Zinke victory would only serve to counter-balance the defeat of Eric Cantor in Virginia.

And, as The New York Times report observed, Cantor’s loss was primarily due to his liberal policies–especially his support for amnesty for illegals. Hopefully, Cantor’s historic defeat will shock the GOP leadership into a little bit of political reality.

Now, if we could only clean the GOP house of the likes of Boehner, McCain, Graham, Ryan, etc., and stop nominating neocons like Zinke. And God help us if Republicans nominate someone like Jeb Bush or Chris Christie in 2016.


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

Dispatching B-2 Stealth Bombers To Europe: Obama’s Attempt At Intimidating Russia

June 11, 2014 by · Leave a Comment 

“This deployment of strategic bombers provides an invaluable opportunity to strengthen and improve interoperability with our allies and partners.”

– Admiral Cecil Haney, commander, US Strategic Command on the deployment of B-2 stealth bombers to Europe.

“Against stupidity, no amount of planning will prevail.” – Carl von Clausewitz

Less than 24 hours after Ukraine’s new president Petro Poroshenko announced his determination to retake Crimea from Russia, US Admiral Cecil Haney confirmed that the US Air Force had deployed two B-2 stealth bombers to Europe to conduct military exercises. The addition of the multipurpose B-2, which is capable of delivering nuclear weapons, is intended to send a message to Moscow that the United States is prepared to provide backup for Ukraine’s fledgling government and to protect its interests in Central Asia. News of the deployment was reported in the Russian media, but was excluded by all the western news outlets.

The B-2 announcement was preceded by an inflammatory speech by Poroshenko at the presidential “swearing in” ceremony in Kiev. In what some analysts have called a “declaration of war”, Poroshenko promised to wrest control of Crimea from Russia which annexed the region just months earlier following a public referendum that showed 90 percent support for the measure. Here’s part of what Poroshenko said:

“The issue of territorial integrity of Ukraine is not subject to discussion…I have just sworn ‘with all my deeds to protect the sovereignty and independence of Ukraine,’ and I will always be faithful to this sacred promise…

“Russia occupied Crimea, which was, is and will be Ukrainian soil…Yesterday, in the course of the meeting in Normandy, I told this to President Putin: Crimea is Ukraine soil. Period. There can be no compromise on the issues of Crimea, European choice and state structure…” (New York Times)

On Thursday, the day before Poroshenko was sworn in, “President Obama and British Prime Minister David Cameron set a deadline for Russia to comply with its demands or face harsher economic sanctions that would be imposed by members of the G-7. Once again, the threat of new sanctions was largely ignored by the western media but was reported in the Israeli newspaper Haaretz. Here’s an excerpt from the article:

“To avoid even harsher sanctions.. Putin must meet three conditions: Recognize Petro Poroshenko’s election as the new leader in Kiev; stop arms from crossing the border; and cease support for pro-Russian separatist groups concentrated in eastern Ukraine.

“If these things don’t happen, then sectoral sanctions will follow…”

Obama said the G-7 leaders unanimously agree with the steps Cameron outlined.” (Haaretz)

The United States is ratcheting up the pressure in order to widen the conflict and force Russian president Vladimir Putin to meet their demands. It’s clear that the threat of sanctions, Poroshenko’s belligerent rhetoric, and the steady buildup of military assets and troops in the region, that Obama and Co. still think they can draw Putin into the conflict and make him look like a dangerous aggressor who can’t be trusted by his EU partners. Fortunately, Putin has not fallen into the trap. He’s resisted the temptation to send in the tanks to put an end to the violence in Donetsk, Lugansk and Slavyansk. This has undermined Washington’s plan to deploy NATO to Russia’s western border, assert control over the “bridgehead” between Europe and Asia, and stop the further economic integration between Russia and the EU. So far, Putin has out-witted his adversaries at every turn, but there are still big challenges ahead, particularly the new threats from Poroshenko.

If Poroshenko is determined to take Crimea back from Moscow, then there’s going to be a war. But there are indications that he is more pragmatic than his speeches would suggest. In a private meeting with Putin at the D-Day ceremonies in France, the Ukrainian president said he had a plan to “immediately stop the bloodshed”

Here’s how Putin summarized his meeting with Poroshenko:

“Poroshenko has a plan in this respect; it is up to him to say what kind of plan it is… I cannot say for sure how these plans will be implemented, but I liked the general attitude, it seemed right to me, so, if it happens this way, there will be conditions to develop our relations, in other areas, including economy.

“It’s important to stop the punitive actions in the southeast without a delay. That’s the only way to create conditions for the start of a real process of negotiations with the supporters of federalization. No one has yet said anything concrete to the people (living in the southeast of Ukraine) and nothing practical has been offered to them. People there simply don’t understand how they’ll live in the future and what the parameters of the new Constitution will look like.” (Poroshenko tells Putin of plan to immediately stop bloodshed in Ukraine, Itar-Tass)

If the report is accurate, then there’s reason to hope that Poroshenko is moving in Russia’s direction on most of the key issues which are; greater autonomy for the people in East Ukraine, Constitutional provisions that will protect them from future abuse by Kiev, and an immediate end to the violence. Putin has sought assurances on these issues from the very beginning of the crisis. Now it looks like he might get his way. Of course, it is impossible to know, since Poroshenko is sending mixed messages.

So why is Poroshenko sounding so conciliatory in his private meetings with Putin, but so belligerent in public?

It could be any number of things, but it probably has a lot to do with Monday’s scheduled tripartite meetings of representatives from the European Union, Ukraine and Russia. These meetings will have incalculable impact of Ukriane’s economic future. They will resolve the issues of price for future gas purchases as well as a plan for settling all previous claims. (Russia says that Ukraine owes $3.5 billion in back payments for natural gas.)

On April 1, Gazprom cancelled Ukraine’s discount and raised the price of gas to 485.5 dollars per 1,000 cubic meters nearly doubling the rate of payment. (It had been $268.5 per 1,000 cubic meters) It is impossible to overstate the impact this will have Ukraine’s economy. Even Ukrainian hardline Prime Minister Arseniy Yatsenyuk was candid in his dire assessment of the situation. He said, “I could have made a populist statement but it is not true. We cannot refrain from using Russian gas.”

If Poroshenko sounds conciliatory, this is why.

Putin refused to discuss the gas issue with the media, but implied that political developments in Ukraine would factor heavily into any decision by Gazprom.

“Russia will be compelled to enact economic protection measures to defend its market if Ukraine signs the association agreement with the EU. “As soon as that accord is signed, we’ll start taking measures to defend our economy,” Putin said. (Itar-Tass)

In other words, if Ukraine doesn’t play ball, it’s going to have to go-it-alone. Kiev cannot expect “most favored trade partner-status”, gas discounts, or other perks if they’re going to stab Moscow in the back and jump into bed with the EU. That’s just not the way things work. Putin is merely warning Poroshenko to think about what he’s about to do before taking the plunge. ( “Average gas prices for Ukrainian households began rising by more than 50 percent in May, and heating prices are expected to climb by about 40 percent, starting in July.” World Socialist Web Site)

This is a much more important issue that most analysts seem to grasp. Many seem to think that IMF, EU and US loans and other assistance can buoy Ukraine’s sinking economy and restore it to health. But that’s a pipedream. In a “must read” report by the Brookings Institute, authors Clifford G. Gaddy and Barry W. Ickes spell it out in black and white, that is, that “Ukraine is a prize that neither Russia nor the West can afford to win.” Here’s a clip from the text:

“It is clear to most observers that the West would not be able to defend Ukraine economically from a hostile Russia…The simple fact is that Russia today supports the Ukrainian economy to the tune of at least $5 billion, perhaps as much as $10 billion, each year…

When we talk about subsidies, we usually think of Russia’s ability to offer Ukraine cheap gas — which it does when it wants to. But there are many more ways Russia supports Ukraine, only they are hidden. The main support comes in form of Russian orders to Ukrainian heavy manufacturing enterprises. This part of Ukrainian industry depends almost entirely on demand from Russia. They wouldn’t be able to sell to anyone else…

If the West were somehow able to wrest full control of Ukraine from Russia, could the United States, the other NATO nations, and the EU replace Russia’s role in eastern Ukraine? The IMF, of course, would never countenance supporting these dinosaurs the way the Russians have. So the support would have to come in the way of cash transfers to compensate for lost jobs. How much are we talking about? The only known parallel for the amount of transfer needed is the case of German reunification. The transfer amounted to 2 trillion euros, or $2.76 trillion, over 20 years. If Ukraine has per capita income equal to one-tenth of Germany’s, then a minimum estimate is $276 billion to buy off the east. (In fact, since the population size of eastern Ukraine is larger than East Germany’s, this is an underestimate.) It is unthinkable that the West would pay this amount.” (Ukraine: A Prize Neither Russia Nor the West Can Afford to Win, Brookings)

The authors go on to show that “a NATO-affiliated Ukraine — is simply impossible under any real-world conditions” because it assumes that Russia will either “become an enthusiastic EU and NATO member itself” (or) “will it return to being the bankrupt, dependent, and compliant Russia of the 1990s.” In other words, the Obama administration’s strategic objectives in Ukraine do not jibe with economic reality. The US cannot afford to win in Ukraine, that’s the bottom line. Even so, we are convinced the aggression will persist regardless of the presumed outcome. The train has already left the station.

At the D-Day ceremonies, Putin and Poroshenko also met briefly with German Chancellor Angela Merkel and French President Francois Hollande although the content of their discussions was not revealed. Public support for the two leaders’ Ukraine policy is gradually withering as the fighting continues in the East without any end in sight. An article in the popular German newspaper Die Zeit indicates that elite opinion in Europe is gradually shifting and no longer sees Washington’s Ukraine policy as being in its interests.

Here’s a brief summary from the WSWS: “It goes on to argue that Washington’s aggression is laying the foundations for a Chinese-Russian-Iranian axis that “would force the West to pursue a more aggressive foreign policy to secure its access to important but dwindling raw materials such as oil.” In opposition to this, the commentary insists that Germany’s independent interests lie “with preserving and deepening Europe’s relations with Russia,” while pursuing similar ties with Iran.” (D-Day anniversary: Commemorating the Second World War and preparing the Third, World Socialist Web Site)

This is an important point and one that could put a swift end to US aggression in Ukraine. Washington’s objectives are at cross-purposes with those of the EU. The EU needs a reliable source of energy and one, like Russia, that will set its prices competitively without resorting to coercion or blackmail. Washington, on the other hand, intends to situate itself in this century’s most prosperous region, Eurasia, in order to control the flow of oil from East to West. This is not in Europe’s interests, but promises to be a source of conflict for the foreseeable future. Case in point: Just last week Bulgaria’s prime minister, Plamen Oresharski, “ordered a halt to work on Russia’s South Stream pipeline, on the recommendation of the EU. The decision was announced after his talks with US senators.”

According to RT News, Oresharski stopped construction after meeting with John McCain, Chris Murphy and Ron Johnson during their visit to Bulgaria on Sunday.

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

“America has decided that it wants to put itself in a position where it excludes anybody it doesn’t like from countries where it thinks it might have an interest, and there is no economic rationality in this at all. Europeans are very pragmatic, they are looking for cheap energy resources – clean energy resources, and Russia can supply that. But the thing with the South Stream is that it doesn’t fit with the politics of the situation,” Ben Aris, editor of Business New Europe told RT.” (Bulgaria halts Russia’s South Stream gas pipeline project, RT)

Once again, we can see how US meddling is damaging to Europe’s interests.

Western elites want to control the flow of gas and oil from East to West. This is why they’ve installed their puppet in Kiev, threatened to levy more sanctions on Moscow, and moved B-2 stealth bombers into the European theater. They are determined to succeed in their plan even if it triggers a Third World War.


Mike Whitney is a regular columnist for Veracity Voice

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

4 Hard Truths That Will Jolt You Awake

June 8, 2014 by · Leave a Comment 

Can you see the “Truth”?

“The truth will set you free. But first, it will piss you off.” – Gloria Steinem

Are you tired of floating around in that pink goop of the Matrix? Are you ready to slough off the illusion like it was an old hat? Has the White Rabbit been too fast for you so far? If you are reading this article, you are here to wake up. Here are five ways to slow that white rabbit down so you can catch up.

1) Money is a Hoax

“The Western worldview says, in essence, that technological progress is the highest value and that we were born to consume, to endlessly use and discard natural recourses, other species, gadgets, toys, and often, each other. The most highly prized freedom is the right to shop. It’s a world of commodities, not entities, and economic expansion is the primary measure of progress. Competition, taking, and hoarding are higher values than cooperation, sharing, and gifting. Profits are valued over people, money over meaning, entitlement over justice, “us” over “them.” This is the most dangerous addiction in the world, not only because of its impact on humanity but because it is rapidly undermining the natural systems that sustain the biosphere.” – Bill Plotkin

It is not the more evolved aspect of ourselves that tricks us into thinking that we need money to survive; it’s the less evolved aspect of ourselves that does the tricking. With our advanced technologies we imagine that we know the way the world works, when, for the most part, we have forgotten how everything is connected.

Until we can relearn “a language older than words,” and once again engage in a healthy dialogue with nature and the cosmos, we will continue to be tricked by the less evolved aspects of ourselves. The more awareness we bring to this extremely complicated cognitive dissonance, the more possible it will be to achieve an ecologically, economically, and socially sustainable world.

As it stands, however, the Federal Reserve is a house of cards guarded by a red herring. Money is the opiate of the masses, and the masses are too busy spending it on worthless crap to get to know each other as healthy individuals, let alone as a healthy community. We have become Pavlov Dogs, and money is our dinner bell. But money was never meant to be horded, or even amassed, it was meant to circulate as a way of uplifting the community. And yet here we are, hoarding and amassing, while our communities are in unhealthy disarray. It’s high time we abandoned the force-fed shibboleth that having more money makes us better people. It doesn’t. Being healthy, compassionate and moral is what makes us better people.

2) Debt is Fiction

“There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.” –  John Adams

Unfortunately our nation has been enslaved by debt. Our current system is not an economic system at all, but an ecocidal system; an intrinsic obsolescence of conspicuous consumption. It’s a grave misfortune that efficiency, sustainability, and preservation are the enemies of our socioeconomic system. This has got to be the most bizarre delusion in the history of human thought, a retarded Ponzi scheme en masse.

But it’s difficult to get people to understand something when money, and especially debt, prevents them from understanding it. Instead of ownership, give us strategic access. Instead of equity, give us equality. Instead of one-track-minded profit, give us open-minded people. Instead of unsustainable monetary-based economics, give us a sustainable resource-based economy, which is basically the scientific method applied to ecological and social concerns.

As tough as it is to hear, nature is a dictatorship. We can either listen to it and fall into harmony or deny it and suffer. Ask yourself this question by Fleet & Lasn: “When the economic system fails, will we know how to behave, how to act, how to appreciate, how to value, how to survive, how to be and how to love in a world that no longer defines relations by money?”

Defenestrate your TV set!

3) Media is Manipulation

“Any dictator would admire the uniformity and obedience of the U.S. media.” – Noam Chomsky

Media has always been an effective method for manipulating people. We are social creatures who are also psychological creatures. This combination makes us unwittingly vulnerable to the power of suggestion. As it stands, media has been our Achilles Heel. These days the “news” we receive from corporate media is more likely to be disinformation. Skepticism is a must when reading or viewing the information provided by these outlets.

The key: Don’t believe anything you hear and only half of what you see. Analyze the Kool Aide before you swallow it. Even then, be prepared to vomit it back up at the first sign of deception. Remain circumspect and question all authority. They don’t have our best interest at heart. They only want our money, and to remain powerful. Like Wendell Berry wrote in the Unsettling of America, “People whose governing habit is the relinquishment of power, competence, and responsibility, make excellent spenders. They are the ideal consumers. By inducing in them little panics of boredom, powerlessness, sexual failure, mortality, paranoia, they can be made to buy virtually anything that is “attractively packaged.””

We are slowly becoming more aware of corporate media lying to us. But they know we know they’re lying to us. And we know they know we know they’re lying to us. With enough inertia, this debacle of a process just continues until we are eventually lying to ourselves. And here we are. Like the great Baruch Spinoza once surmised, “The supreme mystery of despotism, its prop and stay, is to keep men in a state of deception, and cloak the fear by which they must be held in check, so that they will fight for their servitude as if for salvation.” And here we are, unless we decide to wake up.

For it is seeking you.

4) Government is a Corporation

“The end of democracy and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations.” – Thomas Jefferson

Here’s the thing: we do not live in a democracy, and we probably never really have. A prestigious Princeton study recently concluded that we live in an oligarchy: rule by a few individuals. And these individuals just so happen to be plutocrats, making this particular flavor of oligarchy a plutocracy: rule by the rich.

The problem is that money itself has become an immoral agent within an otherwise amoral system that praises itself as moral. Ask yourself: do you wish to live out harried lives of nine-to-five slavery, giving up your days to heartless corporations that don’t give a damn about anything except making money, or do you wish to live a happy life of loving compassion, doing what you enjoy, in spite of plutocracy, oligarchy, and tyranny?

The Occupy Movement succeeded in shifting the tenor and shape of debate in the world, but we must not rest on our laurels. Trickle-down economics DOES NOT WORK! Austerity economics DOES NOT WORK! Corporations are NOT people. Money does NOT equal speech. It’s a trap. If we don’t get big money out of politics then everything we want to do will be hopeless. We need to be smarter with our mobilization tactics for the change and allocation of power within our society. So far the security and surveillance state has boxed us in, like the great MLK Jr. said, “Those who love peace must learn to organize as effectively as those who love war.”

About the Author

Gary ‘Z’ McGee, a former Navy Intelligence Specialist turned philosopher, is the author of Birthday Suit of God and The Looking Glass Man. His works are inspired by the great philosophers of the ages and his wide awake view of the modern world.

**This article was originally posted at Fractal Enlightenment.**

Source: Waking Times

Obama, Global Warmonger

June 8, 2014 by · 1 Comment 

Thanatos hangs over America, a death-wish based on the inner rotting of conscience predicated on the constant need for supremacy in the world as a test, indeed validation, of the nation’s moral virtue, to be achieved through military power—a greatness no longer assumed and, because of inner decay setting in, cause for fatalistic entropic reaction. Circa 1950: Better dead than red. Circa 2014: Better dead than descend from the pinnacle of global hegemony—and why not bring everyone else with us? Paul Craig Roberts’s article in CounterPunch, Are You Ready For Nuclear War?, (June 3), may perhaps seem unduly alarmist to the uninitiated, but even without Obama-Team national security advisers thoroughly capable of and attuned to such planning, there are indications inhering in Obama’s studied moves aimed toward direct confrontation with Russia and China that carry intentionally the eventuality of a nuclear showdown.

Both on the Pacific Rim and European trips, closely integrated in time and purpose, Obama sounds like—and is scripted to be—the Avenger against a doubting world, not sufficiently appreciative of America the Land of Freedom (subtext throughout, of course, capitalism the sole legitimate world system replicating America’s own political-economic structure and ideological values). Comparing his statements wherever he appeared on those journeys of confidence-building, all to the end of confrontation with China and Russia, respectively, yet tacitly as though enemies-joined-at-the-hip, he sounded like nothing so much as a broken 78 rpm recording, stand shoulder to shoulder, stand shoulder to shoulder, stand shoulder… ad infinitum. Poland, South Korea, Latvia and Lithuania, Philippines—the more the merrier, coupled with checks (the monetary kind) for military hardware, promises of American protection, assurances, backed by military bases, training programs, joint exercises, membership in the extant alliance system (an attack on one is an attack on all), the foregoing packaged with the ascription of Russia and China as expansion-minded and out to do harm to its neighbors (i.e., our “friends and allies”). Chuck Hagel, interviewed on BBC, invoked Article 5 of the NATO treaty, the one for all, all for one provision, stating that “Russia was a threat” to Europe (June 5). Nothing could be clearer.

And then we have Obama in Brussels, same day, demanding of Putin, in a time frame “over the next two, three, four weeks,” complete disengagement—in Peter Baker’s words, from his New York Times article, “With Group of 7 Backing, Obama Gives Russia One-Month Ukraine Deadline, “ (June 5)—from Ukraine, that is, “to reverse its intervention…and help quash a pro-Russian separatist uprising or else…it would face international sanctions far more severe than anything it had endured so far.” Beyond a time frame, actually an ultimatum, Obama stated that “if Russia’s provocations continue, it’s clear from our discussions here that the G-7 nations are ready to impose additional costs on Russia.” No compliance after the time period (“and if he remains on the current course”), watch out Putin, for “we’ve already indicated what kinds of actions that we’re prepared to take.”

G-7 on banners, rostrums, a deliberate flaunting of exclusion, along with D-Day Observance plans to prevent an Obama-Putin head-to-head, calculated further to enhance antagonism, this choreographed trip is a prelude to bolder demands directed to the EU itself to speak with one voice, that of America’s, in viewing Russia as an enemy bent on invasion of the West. Rather than hysteria, the mood favors an incremental rise in tensions, at each step, the concretization of war readiness, naval forces in the Black Sea, a larger US troop presence in Poland, the steady movement eastward to the Russian border of NATO troops, anti-ballistic missile installations ringing Russia, a hostile environment, to say the least, for a peaceful accommodation, one the US and the EU, by their actions, appears not to want.

I am tempted to explain these developments as the psychopathology of capitalism as a system, thanatos the upshot of the desensitization of human feeling when the commodity structure defines the individual as alienated from social relations of equality and justice, in favor of a pervasive solipsism, driven by fear, introjecting the values of ruling groups as compensation for empty lives, turning on one another to rise in the social hierarchy, in the last analysis, killing without compunction, as in Obama’s signature, drone assassination vaporizing a fellow human being so that no reminder of his/her existence remains. But such an explanation is too simple by half; policy trumps psychology, or rather invites a particular mental-set in order to reach fruition. Thanatos is consequence, not cause. Policy is about market penetration, market fundamentalism, market hegemony, to which must be appended the full-scale militarization of political economy, value system, how order is maintained and reinforced.

Mass surveillance in America is less if at all about counterterrorism than about the artificial props which are necessary to keep society from disintegrating in the face of animalistic greed (apologies to animals for the reference), ethnocentric and racial assumptions, the uneven structure of wealth, an underlying repression insinuated into the fabric of status, power, and wealth for purposes of the stabilization of privilege and recognition. America enjoyed world prestige for so long that a decline of any sort is catastrophic. My way or the highway works only so long; as this realization sinks in, America becomes more dangerous. These provocative moves to mount a massive counterrevolution are failing, whether Putin or Xi or both, the counterweight is fast forming its leadership coming from the people themselves with Russia and China the historical vanguard for creating a world system where no single power is able to dominate and unilaterally shape the destinies of humankind.

My New York Times Comment on the Baker article, same date, follows:

I am delighted by Obama’s rhetoric emanating out of Warsaw and Brussels. It confirms my sense of him as global WARMONGER No. 1. His threats, boasts, needling are an accurate reflection of his and the US’s character. We hear rumors now of a veritable cottage industry in Washington of policy wonks working out nuclear first-strike paradigms against Russia and China. Fitting, because the impulse for destruction is present. Obama is far more dangerous with or without preemptive war than any POTUS perhaps ever.

Does saying that make me a red-pinko-commie? No. Until America puts its own house in order, which may well be never again, criticism is justified without necessarily praising those declared to be adversaries and worse.
How square peace with massive domestic surveillance? with the largest military budget in the world? with the use of counterterrorism to violate civil liberties at home, mount unjustified aggression abroad?
Times readers may scream (one yesterday said of my post on Warsaw, Go back to Russia–I’ll donate to your travel)! That’s perfect, the ratcheting up of Reaction, frighteningly similar to McCarthyism–even more pervasive–that I remember in my youth.

As for a Putin-Poroshenko meeting, it will come about soon. As for Obama’s threat of sectoral sanctions, this will backfire, as Germany and France will not go along. It is fitting Obama has Cameron as his new pal–two peas in a pod. Others however will resent the crass bullying. We deserve Obama.

Norman Pollack has written on Populism. His interests are social theory and the structural analysis of capitalism and fascism. He can be reached at pollackn@msu.edu.

Source: Counterpunch

European Central Bank Goes Sub Zero

June 7, 2014 by · Leave a Comment 

On Thursday, European Central Bank chief Mario Draghi dropped rates on overnight deposits to minus 0.1% thereby charging commercial banks to keep their money at the ECB. The move, which was applauded by the media as a “historic measure to fight deflation”, is nothing of the kind. Negative rates have been used in both Sweden and Denmark in recent years, but to little effect. The policy will not “get the banks lending again” as the ECB suggests, nor will it ease the high unemployment and slow growth that have plagued the Eurozone for the last six years. In truth, the rate change will have no impact at all. It’s merely public relations stunt designed to create the impression that the ECB is aggressively addressing the crisis for which it is largely responsible. Here’s how the World Socialist Web Site summed it up:

“The move is an expression of the fact that, nearly six years since the collapse of Lehman Brothers, the world economy remains mired in deep crisis, for which the world’s central banks have no solution outside of pumping trillions into banks and financial firms. While trillions are handed out to the banks, workers throughout the continent are told that there is “no money” to pay for pensions, social programs, and healthcare benefits.” (European Central Bank cuts interest rate below zero, WSWS)

Stock traders loved the news that the ECB was going “sub zero”. As we’ve seen before, any indication that the easy money regime is here-to-stay is enough to send equities skyrocketing, which it did. All the main indices notched substantial gains on the day while the SandP 500 surged to a new record of 1,940.

The idea that charging the banks a small fee on overnight deposits will induce them to lend more freely, demonstrates a laughable misunderstanding of how the system really works. Banks don’t need piles of reserves to issue loans. What they need is creditworthy customers and strong demand. But, of course, demand is weak because the ECB has taken steps to keep the EU in a permanent state of Depression through its austerity policies. What this shows, is that the objectives of the class war precede the requirements for a healthy economy. Draghi and his cohorts would rather decimate the welfare state and reduce EU working people to abject poverty, then implement the policies that would generate a strong economic recovery.

But won’t the lower rates lead to more lending, you ask? After all, when the price of money falls, borrowing becomes more attractive, right?

It’s a persuasive theory, but it doesn’t work that way. For example, check out this blurb from Reuters and you’ll see what I mean:

“Lending to companies in the euro zone contracted at the fastest pace on record in November, piling pressure on the European Central Bank to do more to revive the currency bloc’s economy…

“Worryingly, there is still no sign of any trend change in bank lending to euro zone businesses…” said Howard Archer, chief European economist at IHS Economics…

Corporate borrowing in the euro zone overall declined at the fastest pace on record, November’s 3.9 percent drop comparing with a 3.8 percent decline on the year in the previous month.

Bank lending to Italian firms fell at an annual pace of 5.9 percent in November, the sharpest decline in the measure’s 10-year history. That was also true for the euro zone’s smallest economy, Malta, which recorded a 10.4 percent drop….The biggest decline was in Spain, where lending to companies fell 13.5 percent.” (Euro zone corporate lending shrinks at record pace in November, Reuters)

The reason bank lending saw “the sharpest decline in the measure’s 10-year history”, is because the economy is in a depression, and people don’t borrow tons of dough in a depression. They cut back, hunker down and squirrel-away whatever they can. Draghi knows this. He’s just going through the motions to make it look like he cares. It’s all PR. What he really cares about is his constituents, and what they want, is an end of the welfare state.

What’s so irritating about all of this, is that we know how fix the economy. We know how to increase activity. We know how to boost demand, create jobs, and raise GDP. None of this is new.

When the private sector (consumers and businesses) can’t spend for some reason, then the government has to step up and spend like crazy to keep the economy going. The only alternative is to allow consumption to fall sharply, which will push up unemployment, push down GDP and do vast damage to both the economy and financial system. Why would anyone want to do that, especially when all they have to do is increase the budget deficits temporarily while consumers patch their balance sheets and get back on their feet again?

Monetary policy has not and will not fix the economy. How many years are we going to repeat the same mistake before we acknowledge that? The whole presumption that this pointless, circle-jerk policy is designed to do anything other than provide another bailout for underwater, insolvent financial institutions and the crooked bank bondholders who own the whole friggin’ planet is laughable in the extreme. Check this out from Bloomberg:

“In a bid to get credit flowing to parts of the economy that need it, the ECB also opened a 400-billion-euro ($542 billion) liquidity channel tied to bank lending and officials will start work on an asset-purchase plan. While conceding that rates are at the lower bound “for all practical purposes,” he signaled the the ECB is willing to act again.” (Bloomberg)

So that’s what this is really all about, eh? Draghi is just laying the groundwork for a European version of QE?

Yep. Sure is. And that means another $542 billion will go to the chiseler class. Another $542 billion propping up crooked banks by purchasing their unwanted, toxic Asset-Backed Securities. (ABS) Do you think I’m kidding? I’m not. That’s what the money is earmarked for.

The point is, monetary policy alone will not produce a strong, self sustaining recovery, which is a point that Keynes makes in Chapter 12 of “The General Theory of Employment, Interest and Money”. Here’s what he says:

“For my own part I am now somewhat skeptical of the success of a merely monetary policy directed towards influencing the rate of interest. I expect to see the State, which is in a position to calculate the marginal efficiency of capital-goods on long views and on the basis of the general social advantage, taking an ever greater responsibility for directly organizing investment; since it seems likely that the fluctuations in the market estimation of the marginal efficiency of different types of capital, calculated on the principles I have described above, will be too great to be offset by any practicable changes in the rate of interest.” (John Maynard Keynes, “The General Theory of Employment, Interest and Money”, marxists.org, 2002)

Keynes is just stating the obvious, that during periods of weak demand, the sensible option is for the government to take up the slack by “directly organizing investment”, in other words, spending money to keep the economy running. Doesn’t that seem infinitely more reasonable than the Draghi approach which involves a decade of experimental monetary policy that ends in social upheaval, high unemployment, and political unrest?

And here’s the thing: Keynes “The General Theory” was published in 1936. That’s nearly 80 years ago! This isn’t some new-fangled theory concocted by pointy-head crackpots like Bernanke. This is settled science. Fiscal stimulus works. If the government spends, unemployment will drop. If the government spends, the economy will grow. What else do you need to know?

We’ve been hoeing this same row for 6 years now and the economy is still in the dumps. And, in the EU, it’s even worse. Youth unemployment is above 50 percent in Spain and Greece, GDP stuck at a miserable 0.2 percent, business and consumer lending still shrinking, bond yields on sovereign debt are in the toilet, civil disorder and fascism are on the rise, and with the entire 17-member union is rushing headlong into deflation.

And Draghi thinks that negative rates are going to fix all this and put the economy back on the road to recovery?

In your dreams! The only way out of a mess like this is to spend like a madman, which is what Keynes recommended in his famous statement about bottles stuffed with banknotes. Here’s what he said:

“If the Treasury were to fill old bottles with banknotes, bury them at suitable depths in disused coalmines which are then filled up to the surface with town rubbish, and leave it to private enterprise on well-tried principles of laissez-faire to dig the notes up again… there need be no more unemployment and, with the help of the repercussions, the real income of the community, and its capital wealth also, would probably become a good deal greater than it actually is. It would, indeed, be more sensible to build houses and the like; but if there are political and practical difficulties in the way of this, the above would be better than nothing.” (p. 129)

Okay, so it sounds crazy, but it’s really no different than Bernanke’s “helicopter drop” theory, that is, that –during a severe downturn–the government needs to find a way to stimulate demand. The best way to do that, is to avoid the normal transmission mechanisms (which don’t function properly during a slump) and get money directly into the hands of the people who will spend it quickly and get the economy growing again. It’s all about spending, spending, spending. It doesn’t matter if people buy Ipads or Ant Farms. Just spend, dammit. Spending is activity, activity is growth, growth reduces unemployment, which leads to more investment, more jobs and a virtuous circle.

If it seems to you, dear reader, that Keynes antidote for the ailing economy is more likely to succeed than Draghi’s, then you are certainly right. Massive doses of fiscal stimulus WILL revive the EU economy, lower unemployment, and boost growth. The question is whether that’s a goal the public should really support or not? In other words, is there any point in trying to restore a system which, at its very core, is unstable, self destructive and exploitative? Here’s how Counterpunch economics writer Rob Urie sums it up:

“John Maynard Keynes created a host of economic patch-jobs to save capitalism from more effective solutions. In the pit of the Great Depression FDR implemented programs based on Mr. Keynes’ ideas (which) produced minor relief now deemed by the economic insightful-lite to be a ‘robust’ economic recovery….. But the cause, leveraged (finance) capitalism gone wild, was only temporarily tamped down by regulation while its intrinsic instability was left intact…

Calls for re-regulation, managed capitalism, beg the question: re-regulate what? As demonstrated by history, the system of finance capitalism is intrinsically unstable and economically destabilizing. Under the guise of reviving a functioning financial system a dysfunctional system has been revivified, not revived, and nearly all benefits continue to accrue to a tiny economic elite.” (Financial Crises and Economic Depressions, Rob Urie, CounterPunch)

So, yeah, Keynes’ remedies will work. They’ll definitely get the economy up-and-running again and keep it sputtering-along until the next crisis. But why bother?

Why not just scrap the whole thing and move on to Plan B.


Mike Whitney is a regular columnist for Veracity Voice

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

The Evolving Universe of Matter & Energy: America’s Rising Worldview of Evil Spirits

June 7, 2014 by · Leave a Comment 

After two mystical encounters with the evil spirit Zarathustra, the dark prophet Nietzsche announced the “death of the Christian God.” Dubbing himself the Antichrist, Nietzsche proclaimed:

The greatest recent event — that ‘God is dead,’ that the belief in the Christian God has ceased to be believable — is even now beginning to cast its first shadows over Europe; however, few really understood ” what has really happened here, “and what must collapse now that this belief has been undermined — all that was built upon it, leaned on it, grew into it; for example, our whole European morality.” (False Dawn, Lee Penn, p. 433)

From the beginning of Christ’s earthly ministry, there were those who received Him but many more, like Nietzsche, who would not, and so it will be until the end.   The former are those who admit and humbly confess their sinful condition while the latter, being full of stubborn pride, covetousness, and envy will not.

Not even the mighty miracle of creation ex nihilo as described in John’s Gospel and Christ’s own bodily resurrection (Luke 16:31) can persuade those who choose not to believe.

This willful unbelief in Christ had been prophesied long before.  In support of this John cites Isaiah 53:1-3,

He was despised and rejected by mankind, a man of suffering, and familiar with pain. Like one from whom people hide their faces he was despised, and we held him in low esteem.”

In order to be received, one must be acceptable.  Christ is rejected by proud, rebellious, sinless men along with His offer of salvation because He is not acceptable to them.  Thus their final word to Him is the cross.

At the root of the rejection of Jesus Christ God incarnate is the rebellious assertion that man has not been created by Him.  He is a free spirit neither dependent upon Him for his life nor created in His spiritual image but rather a conscious product of evolution.  He is a man-god who can choose either to murder God or to invent sock-puppet deities to do his bidding, for he is the master of science, evolution, matter, energy, time, and being who through his own knowledge and powers will save himself, or so he foolishly believes.  In reality, an inner blinding prevents him from ‘seeing’ that his liberty does not lead to greater freedom but to slavery because willful rejection of his Creator means he becomes Satan’s infernal tool.

I am become a monstrous machine of annihilation…”  Ritual of Destruction, the Satanic Bible, Anton LeVey

The ritual ‘murder’ of the Christian God led to the collapse of far more than just European morality.  Consider the following:

In Christian thought, a person is a spirit and personality is the total individuality of the spirit. Without spirit there is no person.  The term ‘person’ originated in Christian theologies developmental struggle to comprehend the nature and experience of the Christian God, the transcendent, personal Triune God:

The derivative concept of human personhood is a gift of the Christian faith to culture…” (Stephen P. Stratton, Chapter 14, p. 247, The Self, Paul Vitz & Susan M. Felch, Editors)

Whether the Founders were individually Christian or not, there was among them a strong Christian consensus that finds some of its greatest spiritual and moral expression in the scholarly works of Samuel Rutherford in “Lex Rex” (1644) and in the writings of the 18th century jurist William Blackstone.

Rutherford reasoned that since all people are sinners, then no sinner—whether President, Att. General, Senator, ‘gay,’ pastor, cop, jurist, perverse sex-educator, abortionist, evolutionary biologist, or Supreme Court Justice for example—is superior to any other sinner. No sinner is above the law but rather subject to the law without exception.  All must recognize that they are sinners under the unchanging transcendent Law of God.

Blackstone greatly influenced early American understanding of the Christian God, the Bible, Law and nature. He taught that since the eternally unchanging Triune God is the omnipotent Creator who works and governs the affairs of men then all law should be consistent with His Revelation in the Bible. No law should be passed that is contrary to the higher law of God.

Furthermore, as all men are created spiritual equals in the eyes of God, then life, property, worth, dignity and other unalienable rights are conferred upon each human person at conception.   For example, the unalienable right to life is because all people are God’s spiritual image bearers while freedom of religion and speech are the temporal property of a person’s God-given spiritual property of conscience and reason.

In “Property,” published in The National Gazette on March 29, 1792, James Madison outlines the meaning of a person’s God-given spiritual property, some of its’ temporal rights and the meaning and intent of just government as opposed to unjust government:

He has a property….in his religious opinions, and in the profession and practice dictated by them.”  “He has a property…in his opinions and the free communication of them.”  “He has an equal property in the free use of his faculties and free choice of the objects on which to employ them.” “He has property very dear to him in the safety and liberty of his person.”  (The Heritage Foundation)

Property is,

“….a man’s land, or merchandize, or money (and) as a man is said to have a right to his property, he may be equally said to have a property in his rights. Where an excess of power prevails, property of no sort is duly respected. No man is safe in his opinions, his person, his faculties or his possessions.” 

Just government is instituted to protect property of every sort:

This being the end of government, that alone is a just government, which impartially secures to every man, whatever is his own.” (Samuel Rutherford, lexrex.com)

The Constitution therefore, recognizes the divine nature of man’s creation, that man is a person endowed by his personal Creator with spiritual property, a divine right to life and liberty, and the means of acquiring and possessing property. Hence our Republic recognizes Law is unchangeable because the Creator (John 1:1) is the unchanging Lawgiver Who is the same today as yesterday and for all eternity:

It is sufficiently obvious, that persons and property are the two great subjects on which Governments are to act; and that the rights of persons, and the rights of property, are the objects, for the protection of which Government was instituted. These rights cannot well be separated.” (James Madison, Speech at the Virginia Convention, December 2, 1829)

Vishal Mangalwadi, India’s foremost Christian scholar affirms that the Christian gift of personhood gave birth to the “belief in the unique dignity of human beings,” and this is,

“…the force that created Western civilization, where citizens do not exist for the state but the state exists for the individuals. Even kings, presidents, prime ministers, and army generals cannot be allowed to trample upon an individual and his or her rights.” (Truth and Transformation: A Manifesto for Ailing Nations, pp. 12-13)

 Death of the Christian God: Catastrophic Consequences

And this is the condemnation, that light is come into the world, and men loved darkness rather than light, because their deeds were evil.” John 3:19

Once the citadel of the Light that came into the world, modern Western Europe and America are roiling seas of darkness punctuated here and there by shrinking islands of light because evil-minded men love darkness rather than Light. Thus the perversely twisted, upside-down, lawless atmosphere of our age is the “death of the Christian God” made tangible.

When people fall away from the knowledge of God and transgress against His commandments, these actions effectively turn them back to their natural state. This means that in forsaking God, the fount of living waters, they have become cracked cisterns that hold no water. (Jer. 2:13) In other words, the death of the Christian God logically means the death of spirit (person), hence also spiritual and temporal property, and by extension the collapse of Western civilization and America’s Constitutional Republic— “if the foundations be destroyed, what can the righteous do?”  Psalm 11:3
The methodology of the ‘murder’ of Christ the Creator (John 1:1) requires that the miracle of six day creation (Genesis account) together with Adam and Eve and their fall be de-historicized and reduced to myth and fable (annihilated), a project already underway by the time of Descartes and fulfilled with infernal ‘higher criticism.’

In her book “Total Truth,” Nancy Pearcy, a senior fellow at the Discovery Institute, writes that one of the great ironies of history is that the enduring impact of Descartes philosophy has been precisely the opposite of what he had intended. Descartes had intended the defense of the human soul/spirit over and against the dehumanizing mechanistic and materialistic conception of the universe. Instead, soul/spirit was reduced to a shadowy substance totally irrelevant to the material realm known by natural science. The immortal soul/spirit became a kind of ghost only tenuously connected to the physical body.

After the success of Newtonian physics natural science began to take on the trappings of religion. Epistemologically, science began to be viewed as the way to true understanding, and by extension, true progress. Nature itself took on the guise of an impersonal, mystical entity described as a cosmic machine governed by deterministic energies working through natural laws as strictly as the gears of a clock. Though soul/ spirit are crucial for reason, conscience, morality, belief, faith, prayer, theorizing, science, math and religion, there was no room for them in the cosmic machine.

The mechanistic conception gave rise to evil ‘isms’–rationalism, positivism, skepticism, relativism, and scientific materialism (atheism), which granted the sovereign reason of sinful man and naturalistic science an epistemological monopoly on so-called “real” knowledge, facts and truth while trivializing everything else to faith, personal belief and social constructs.  The devilish consequences of this have been horrendous, for whereas the creation of universal moral law was traditionally the function of the Triune God, now this function is arrogated to the individual human will, making the “reason” of sinners into God and science into a dictatorship of the knowable.

“…men loved darkness rather than light, because their deeds were evil.” John 3:19

With “reason” sitting on the throne of the Christian God, heaven was shut-down and the physical world of the senses elevated to the supreme reality. The six day Genesis account was de-historicized and replaced with imaginative evolutionary cosmologies claiming vast ages of time.  As supernatural Christian theism declined, immutable truth, moral law and sin disappeared under the onslaught of evil “isms” and apostate Protestant Liberalism (pantheism) in tandem with reductionist evolutionary biology, which became the most prestigious way to study the depersonalized human organism. With knowledge limited to the sensory realm, Jesus Christ the Word Incarnate was “murdered,” meaning reduced by evil men to an immanent mystical evolutionary force (Christ consciousness) while man’s soul/spirit was lost in an endless cycle of reductionism and determinism. Man, the person created in the spiritual likeness of the One God in three Persons would be lost.  In his place would stand the subhuman hominid, a conscious product of evolution, the god of forces.

Today, the ‘god’ evolution has so thoroughly replaced the living Word (John 1:1) and Special Creation in the consciousness of vast numbers of scientifically endarkened men and women within and without the whole body of the Christian Church that one of the leading evolution-worshippers of our day, Professor S.J. Gould, describes scientism and evolution as the story of mankind that tells us,

“….where we came from, how we got here, and perhaps where we are going. Quite simply, it is science’s version of Roots, except it is the story of us all.”   (The Religious Nature of Evolution Theory and its Attack on Christianity, John G. Leslie and Charles K. Pallaghy, Ph.D, creation.com)

In glowing affirmation, Theodosius Dobzhansky (1900-1975) , a prominent evolutionary biologist and progressive creationist sees the ‘god’ evolution as a light that illuminates all facts, a trajectory which all lines of thought must follow, for if man,

“…has arrived at his present state as a result of natural processes rather than a supernatural will, he can learn to control these processes…The concept of evolution, which is now basic to the life sciences, has provided new and in some ways revolutionary answers to questions men have been asking for centuries. The two most important of these are, ‘Why am I here, what is the purpose of human existence, and what is the nature of the world of life that surrounds us?”   (Dobzhansky, T., Ayala, F.J., Stebbins, G.L. and Valentine, J.W., Evolution, W.H. Freeman and Co., San Francisco, 1977)

Triumph of Scientism and the ‘god’ Evolution

At its founding and for about 150 years after America was the world’s beacon of freedom and hope because it was founded on the true Light of unchanging truths such as,

all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.–That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed. . .”

Now however, an endarkened generation of law makers, politicians, entertainers, professors, seminarians and high school graduates no longer believe that anyone knows ‘the’ truth or even if whether males are meant to be males or females too. For them, anyone who claims to know the truth is a bigoted fundamentalist because they know there was never a fall from God’s good creation but rather an evolutionary ascent moving from primordial matter to creeping things, crawling things, knuckle-dragging things to man. They know with certainty that human beings were never created but evolved. And as the ‘god’ evolution endows nothing—not soul/spirit, personhood, unalienable rights and the freedom to exercise them—then our Constitution is as meaningless as Xmas and Special Creation.

The real source of this evil and madness is a godless left-right confederacy of nihilists described by Professor Angelo Codevilla as America’s Ruling Class.  In “The Ruling Class: How They Corrupted America and What We Can Do About It,”  Codevilla, emeritus professor of international relations at Boston University, argues that America’s real war is between Americans who still worship the supernatural Triune God and a class of evolutionary humanists who dominate both political parties, academe, Hollywood, science and media.  They preach from pulpits, run big business, our economy and the country’s major institutions and imagine themselves entitled to reshape an America that they regard as composed of un-evolved subhuman hominids.

The Ruling Class affirm that scientism and evolution trump the Revelation of God, and as they are the evolved products of the ‘god’ evolution they are science’s authoritative enlightened priests and god-men who pray to themselves,

“… as saviors of the planet and as shapers of mankind in their own image..” (The Ruling Class: How They Corrupted America and What We Can Do About It, p. xix)
After more than eighty years of nearly unopposed evolutionary evangelization in the schools, media, seminaries, academia and elsewhere the Ruling Class is finally at liberty to declare that evolution is “mind,”

….enlarging its domain up the chain of species.”  The god evolution is the “universe…a mind that oversees, orchestrates, and gives order and structure to all things.”   (Algeny, Jeremy Rifkin, 1983, p. 188)

Now that scientism and evolution reign supreme, Satan’s infernal machines, such as the demonized Rifkin,  no longer feel like guests,

”….. in someone else’s home and therefore obliged to make our behavior conform with a set of pre-existing cosmic rules. It is our creation now. We make the rules. We establish the parameters of reality. We create the world, and because we do, we no longer feel beholden to outside forces. We no longer have to justify our behavior, for we are now the architects of the universe. We are responsible to nothing outside ourselves for we are the kingdom, the power, and the glory forever and ever.” (ibid)

According to Robert Muller, the father of World Core Curriculum, now that evolution is “mind” highly evolved men are free to spiritually evolve into higher and higher forms, to become one with the ‘divine:’

Once again, but this time on a universal scale, humankind is seeking no less than its reunion with the ‘divine,’ its transcendence into ever higher forms of life.  Hindus call our earth Brahma, or God, for they rightly see no difference between our earth and the divine.  This ancient simple truth is slowly dawning again upon humanity.  Its full flowering will be the real, great new story of humanity as we are about to enter our cosmic age…” (New Genesis: Shaping a Global Spirituality, Robert Muller, father of Core Curriculum, 1984, p. 84)

“…..the whole world lies under the sway of the wicked one.”  1 John 5:19    “Therefore take heed that the light which is in you is not darkness.”  Luke 11:35

From the post-flood world of ancient Babylon to our own, the majority of the world’s people have lived under the tyranny of powers, principalities and various determinisms—karma, reincarnation, evolution, fates, furies, chance, cause, doom, natural selection, and genes. They believed that all events in the real world were predestined and controlled by unseen forces of the cosmos that the apostle Paul described as the elemental spirits of the universe.

When Jesus Christ God incarnate demonstrated His absolute control over the elements (Luke 8:24) the tyranny of determinism was cast down and utterly broken.  In the fourth century Gregory of Nazianzen suggested that at the very moment when the Magi came to worship the child of Mary and Joseph, it was then that the tyranny of determinism was broken:

“From that moment onward, the cosmos has orbited around the newborn king…Christ is the logos—the word and the reason by whom all exists and to whom all is ordered.” (American Babylon, Neuhaus, p. 226)
Determinism crept into the West when evil spirits entered into the heart of Christendom during the Renaissance.   They came quietly, first to certain theologians who rejected Jesus Christ in favor of Hermetic magic, Babylonian Kabala, Eastern mysticism, reincarnation, evolution, karma and other occult traditions and determinisms, and then openly with the brazen claim that laws of matter and evolution ultimately govern the world and man.

With penetrating insight, Father Richard John Neuhaus connects modern evolutionary scientism to its’ ancient spiritual foundations in astrology. In his book, “American Babylon,” Neuhaus argues that astrological elemental spirits have been recast as,

“…evolutionary dynamics, life forces, or laws of nature.”  Though described as laws rather than spirits, these elemental “forces”…. work their inexorable ways in cold indifference to reason, to will, to love, and to hope. In short, it is suggested that the elemental spirits are in charge and that human freedom is a delusion.“(p. 226)

Beware lest any man spoil you through philosophy and vain deceit, after the tradition of men, after the rudiments of the world, and not after Christ.”  Colossians 2:8

According to Pastor Larry DeBruyn, the word “rudiments” (Greek, stoicheion) relates to the universe of matter and energy and is variously,

“…. translated “elemental powers” (NAB), “elementary principles” (NASB), “basic principles” (NIV, NKJV), “evil powers” (NLT), and “elemental spirits” (ESV, NRSV). Translations indicate that stoicheion’s meaning diverges between “principles” and “powers,” between the “physical elements” constitutive of the cosmos or universe, or the “spiritual powers” that inhabit it. In 2 Peter 3:10, the first sense—that is, the “elements” which “shall melt with fervent heat”—is evident, while in Galatians 4:3 and 9, the other sense—that is, “world forces” which once “held in bondage” the Galatian believers—is evident.” (The Supreme Supremacy of the Lord Jesus Christ,guardinghisflock.com)

The Worldview of Evil Spirits

“….we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places.”  Eph. 6:12

During the 1970s Satanism and possession became front page news in America.  It was during this time that the eminent theologian Malachi Martin, a former Jesuit professor at the Pontifical Biblical Institute in Rome published his shattering book on demon oppression and possession.
Martin’s “Hostage to the Devilthe Possession and Exorcism of Five Contemporary Americans,” presents five cases of actual possession that express important aspects of the worldview of evil spirits which allow us to not only identify these elements but discern their devastating effects within the whole body of the Christian church, the minds of millions of Americans and by extension, our nation.

The worldview of evil powers always takes the form of nature worship, or celebration of created things such as matter and energy as opposed to worship of the living, personal Creator Who created everything. Thus in support of the idea that living beings created themselves it is virulently anti-supernatural and Genesis account creation ex nihilo in favor of one dimensional naturalism and evolutionary cosmologies.

In one case, an evil spirit’s evolutionary cosmology teaching the self-created “universe of matter” and human life was disclosed wherein,

“…men, women, animals, plants, cities, oceans (are) interconnected.  There is really no difference between one thing and anything else….land, ocean, animals, humans, plants are one living organism clad in the shell of breathable atmosphere.  Psychic forces bind it all together….It is a self-creating, self-protecting, self-developing thing…..Earth as mother, as womb, as god, as tomb, as a whole unity protected by its own shell and its own strength (is) all there is.” (p. 395)

From the Big Bang (exploding cosmic egg) which supposedly created matter and energy in the demon’s description of the universe as “self-creating” to inflationary in the description of the universe as a “self-developing thing” to Gaia as “Earth as self-protecting mother” the possessing demon’s evolutionary cosmology is very similar to occult New Age spirituality.

Another important case involved David, a Catholic priest who became obsessed with the evolutionary scientism of Pierre Teilhard de Chardin.  Teilhard’s destructive influence is widespread today within transnational Trans-humanist circles, the U.N., the Catholic Church, and increasingly within the Protestant Church.

In “Teilhard de Chardin: Trojan Horse of Vatican II/Heretic Extraordinaire,” Dr. J. P. Hubert wonders whether based on Teilhard’s admission of a mystical encounter if his evolutionary science was satanically inspired.  Teilhard describes his strange encounter:

The man was walking in the desert…when the Thing swooped down on him.  Then, suddenly, a breath of scorching air passed across his forehead, broke through the barrier of his closed eyelids; an irresistible rapture took possession of him….mightily refashioning the enfeebled fibres of his being.  And at the same time the anguish of some superhuman peril oppressed him, a confused feeling that the force which had swept down upon him was equivocal, turbid, the combined essence of all evil and goodness.  You called me: here I am grown weary of abstractions, of attenuations, of the wordiness of social life, you wanted to pit yourself against Reality entire and untamed.  I was waiting for you in order to be made holy.  And now I am established on you for life, or for death….He who has once seen me can never forget me: he must either damn himself with me or save me with himself.  O you who are divine and mighty, what is your name? Speak.”

Hubert concludes that Teilhardism is,

“…no doubt of Satanic origin—a true “religion of man,” if ever there was one.”

America’s Unfolding Spiritual Catastrophe

For over eighty-five years, America has been incrementally conquered by the same madness-inducing demon of hatred and violence that earlier took over Russia, China, Germany, and Italy.

This demon is mainly embodied within America’s “scientifically endarkened” Ruling Class which is deeply oppressed and possessed by elemental spirits and the delusion that the true enemy of America is always on the Right.  Having rejected the biblical God and the religious heritage of our civilization, they embrace instead an ancient order of beliefs of which Communism and Socialism are logical expressions.  A new world order is what they seek, but in order that it can emerge, the still remaining remnants of America’s Christian-based culture must be completely destroyed.
What this means is that the spiritual catastrophe that unfolded in the Soviet Union and Nazi Germany is unfolding on America’s stage.

Can this catastrophe be averted?

Repentance: The Only Way Back

Returning to David, prior to his obsession with Teilhardism he was destined to become a professor of anthropology at a Catholic university.  But under the influence of Teilhardism, he came to see that the Genesis account of creation ex nihilo, Adam and Eve as the first man and woman and parents of all mankind who fell and passed on Original Sin to all human beings were utterly contrary to modern scientific thinking and evolution.

Therefore David taught anthropology from a modern “evolutionary science” perspective, even going so far as to exclude traditional presentations of doctrines about creation ex nihilo and Original Sin.  But after introducing Teilhardism to his students, doubts arose when he observed the breathtaking transformative effects of this teaching upon Jonathan, one of his students, a priest who now insisted that all the sacraments are “…no more than expressions of man’s natural unity with the world around him.” 

David’s eyes were suddenly opened and he saw clearly for the first time that Teilhardism exalted man as an animal and pictured,

God as no more than the very bowels of earth and sky and the spatial distances of the universe with all its expanding galaxies.” (Martin, p. 107)

Meanwhile, Jonathan left the church and quickly founded his own cult among wealthy Manhattan families.  He preached that the universe and all people were evolving as ‘one’ in a naturally occurring mystical union which he called “Abba Father.” (p. 127)

Martin writes that Jonathan had come under the dominion of an evil spirit and David was called in to exorcise him.  However, the demon possessing Jonathan ridiculed David, saying they both believed the same things, therefore if Jonathan needed exorcism David needed it more.

Reeling in shock, David was led to an agony of soul-searching over the course of many weeks during which he re-examined and finally repented of the intellectual arrogance that led him to embrace Teilhardism and the “higher criticism” of Scriptures that reduced the Revealed Word to myth, allegory and delusion and the death of Jesus to an insignificant event of the evolutionary past rather than,

“…an ever present source of personal forgiveness and unshakable hope for any future.” (p. 149)

According to Martin, the evil spirit who had nearly succeeded in killing David’s faith now taunted him that to return to faith would entail slavery of mind and will.   But when a repentant David deliberately rejected the demon’s taunts,

“…a great and breathtaking dimension full of relief….flooded his mind and will and imagination….And when he now looked at the world of nature around him…and heard the song of a mockingbird nearby, he received it no longer as he had while a Teilhardian evolutionist, as ‘intimations of molecules endlessly regrouping,’ but rather ‘of endless life for each person, and of love without a shadow.” (pp. 163, 165)

Speaking through Nietzsche, Zarathustra had declared the death of the Christian God on behalf of all willful unbelievers, but now for David, “He’s alive and I’m forgiven!”   His faith in God, Christ, the Holy Spirit and Scripture restored, David was ready to exorcise the evil spirit who possessed Jonathan.  He did so,

“…in the name of God who created him (Jonathan) and you (evil spirit), and of Jesus of Nazareth who saved him!  You will depart and get back to the uncleanness and agony you chose.” (p. 169)


Linda Kimball writes on culture, politics, and worldview. Her articles are published nationally and internationally. Linda can be reached at:lindykimball@msn.com

Linda Kimball is a regular columnist for Veracity Voice

The Wealth Divide Never Wider

June 7, 2014 by · Leave a Comment 

The Robber Barons of the 19th and 20th century had nothing over the elites of today’s globalist transnational financial conglomerates. The Richest Americans, listed in Forbes conceals the real power that controls the economy. Net worth is deficient in gauging dominance in financial commercialism and monetary preeminence. The Top 50 Highest-Paid CEOs as reported by ABC News ties into Michael Hiltzik’s account that CEO-to-worker pay gap is obscene, “The average CEO-to-worker pay ratio in 2012 was about 350 to 1.” Yet the divide in pay does not exemplify the exact lose in a livable standard of living for the ordinary staffer.If corporate multinationals were really about creating actual wealth, the pay of inspirational leadership and senior management talent, that executes the business plan, would be incidental if the employees were sharing in affluence. Those who demand higher minimum wage compensation do not understand how business works. The inordinate wealth divide, cannot and will not be reduced, until genuine economic prosperity is achieved.

Analyze the idiocy of a naive Undergraduate Research Fellow, Brian Chesley in 3 Ways to Reduce the Wealth Gap.

1. Open higher education to everyone.

2. Increase the minimum wage.

3. Increase taxes on the rich.

Such ignorant and illiterate attitudes demonstrate that institutions of higher learning encourage an atmosphere of social collectivism that plays directly into the hands of the new tyrannical tycoons.

The New York Times OP-ED piece by Daniel Altman (an adjunct associate professor of economics at the New York University Stern School of Business and a former member of the New York Times editorial board), proposes a foolish mindset and proposal in To Reduce Inequality, Tax Wealth, Not Income.

“In 1992, the top tenth of the population controlled 20 times the wealth controlled by the bottom half. By 2010, it was 65 times. Our graduated income-tax system redistributes a small amount of money every year but does little to slow the polarization of wealth.”

American household wealth totaled more than $58 trillion in 2010. A flat wealth tax of just 1.5 percent on financial assets and other wealth like housing, cars and business ownership would have been more than enough to replace all the revenue of the income, estate and gift taxes, which amounted to about $833 billion after refunds. Brackets of, say, zero percent up to $500,000 in wealth, 1 percent for wealth between $500,000 and $1 million, and 2 percent for wealth above $1 million would probably have done the trick as well.”

Absent in redistribution of wealth schemes is that the method of authentic free enterprise is never understood. Nor is there ever an effort to reestablish the principles of real business competition. The marketplace of voluntary and mutually beneficial commercial transactions, destroyed by the systemic Corporatocracy model, is the ultimate reason why wealth disparity is so great. The literal legacy of the Robber Barons is the internationalist financial system of central banking that predetermines the outcomes of selective patrons from calculating crony capitalism.

CorporateProfitsWagesCartoon.jpg

Public companies, once established to develop, produce and sell innovative goods or services are rare in an environment where financial manipulation is the primary vehicle to riches. Equity exchanges, based upon raising capital for industrious and constructive ventures, seldom function for this utilitarian purpose. The global economy, in reality, has perfected an anti-free enterprise filter that stamps out initiative and penalties upstarts that are not part of the cartels.

With the insolvency of the world-banking system an inescapable fact, the prospects for even more concentration of real assets into the hands of the financial elites, posed for the final wealth confiscation, of resources not already in their hands, is upon us.

When the internationalist financial system implodes and business screeches to a halt, a populist movement to clawback century long fraudulent gains of the hidden stashes from the interlocked illuminati families is the only coherent alternative to establish a fiscally sound financial future.

Julie Lévesque writes in Global Research, Bilderberg 2014: War Criminals, Big Oil and “Too Big to Jail” Banksters Meet in Secrecy. He also cites our Negotium essay, Goldman Sachs Above the Law.

“The 2014 Bilderberg meeting is another example of those “blurred lines” between government, big oil and the financial sector, the three pillars of war. According to some reports, the topics of discussion at this year’s meeting will include the situation in Ukraine and the Russia-NATO relationship, as well as the Transatlantic Trade and Investment Partnership (TTIP), an agreement which, according to Stop TTIP, “is in fact a corporate coup that will take us to a ‘corporatocracy’, a corporate-run world.”

The mental confusion that blocks out the way the world fundamentally functions prevents focusing upon any essential debate as to substitute economic parameters for an equitable stake and remuneration for productive contributions to the success of any commercial venture.

The term Robber Barons, should not be substituted for every prosperous risk taker or self-made entrepreneur. The corruption within the cabal economy is rooted in the very nature of the favorable treatment given to participants in the criminal corporatist syndicate.

As Ms. Lévesque correctly describes the methods and operations of this New World Order neo-feudalism, the only structure that offers any prospects for an economic renaissance must target and strip the political influence of the globalists as much as the confiscation of their vast holdings.

Do not be deceived, by communist or socialist newspeak. Sharing the wealth is not the objective. The goal is imposing an unconditionally surrender upon the banksters, which is serious business. Start with the elimination of the Rehypothecation of Collateral. Lawful business has no room for coexistence with derivatives and swaps.Holding the body politic accountable and committed to breaking up the banksters’ monopoly requires compliance regulatory resistance from within the business community. It is just as important as customer and buyer rejection of the corporate induced consumer society. Sadly, most people simply are uninformed about the principles of sound business.

Most CEO’s are not businesspersons, but are globalist enablers and often are outright thieves. The needed business revolution will not be lead by their ilk.

Real competition can never be encouraged until inventive and audacious risk-takers have practical alternatives to fund their enterprises. Only then, will the wealth ratio narrow as affluence, that is more tangible, expands and the fortunes of the oligarchy diminish.


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

Sartre is a regular columnist for Veracity Voice

The New World Order And The Rise Of The East

June 4, 2014 by · Leave a Comment 

“Actually, as Winston well knew, it was only four years since Oceania had been at war with Eastasia and in alliance with Eurasia. But that was merely a piece of furtive knowledge, which he happened to possess because his memory was not satisfactorily under control. Officially the change of partners had never happened. Oceania was at war with Eurasia: therefore Oceania had always been at war with Eurasia. The enemy of the moment always represented absolute evil, and it followed that any past or future agreement with him was impossible…” – George Orwell, 1984

Nations, cultures and populations are best controlled through the use of false paradigms. This is a historically proven tactic exploited for centuries by oligarchs around the world. Under the Hegelian dialectic (the very foundation of the Marxist and collectivist ideology), one could summarize the trap of false paradigms as follows:

If (A) my idea of freedom conflicts with (B) your idea of freedom, then (C) neither of us can be free until everyone agrees to be a slave.

In other words: problem, reaction, solution. Two sides are pitted against each other in an engineered contest. Each side is led to believe that its position is the good and right position. Neither side questions the legitimacy of the conflict, because each side fears this will lead to ideological weakness and disunity.

The two sides go to war, sometimes economically, sometimes militarily. Both governments demand that individuals relinquish freedom, independence and self-reliance, a sacrifice that “must be made” so that victory can be achieved. In the end, neither nation nor society has truly won. The only winners are the oligarchs, who sing words of loyalty to their respective camps, while acting in league from the very beginning. The oligarchs, who never intended to target each other in the first place. Their target, their ONLY target, was the citizenry itself — the dumbfounded masses now mesmerized with shock, awe and terror.

The false paradigm method and the Hegelian dialectic are in full force today. Only a few years ago, Russia, China and the United States were considered close economic and political allies. Today, those alliances are being quickly scrapped in order to make room for conflict, a conflict useful only to a select international elite. As I have outlined in numerous articles, includingRussia Is Dominated By Global Banks, Too and False East/West Paradigm Hides The Rise Of Global Currency, when one looks beyond all the theatrical rhetoric being thrown around between Barack Obama and Vladimir Putin, the ultimate reality is that the relationship of both governments to the global banking elite is the same.

During both of Obama’s Presidential terms, he has flooded his cabinet with current and formeremployees of Goldman Sachs, a longtime proving ground for elitist financiers with globalist aspirations.

And who is the primary economic adviser to Vladimir Putin and the Russian state? WhyGoldman Sachs, of course!

U.S. and European elites have been calling for a centralization of economic power under the control of the International Monetary Fund, as a well as a new global currency.

Not surprisingly, Putin also wants a new global currency under the control of the IMF.

Obama is closely advised by globalists like Zbigniew Brzezinski, a member of the Council on Foreign Relations and cofounder of the Trilateral Commission, who in his book Between Two Ages: America’s Role In The Technetronic Era states:

“The nation-state is gradually yielding its sovereignty …[F]urther progress will require greater American sacrifices. More intensive efforts to shape a new world monetary structure will have to be undertaken, with some consequent risk to the present relatively favorable American position…”

As long as he has been in power, Putin has been closely advised by Henry Kissinger, yet another member of the CFR and proponent of the Trilateral Commission, who has said:

“In the end, the political and economic systems can be harmonized in only one of two ways: by creating an international political regulatory system with the same reach as that of the economic world; or by shrinking the economic units to a size manageable by existing political structures, which is likely to lead to a new mercantilism, perhaps of regional units. A new Bretton Woods kind of global agreement is by far the preferable outcome…”

Both Kissinger and Brzezinski refer to this harmonized global economic and political structure as the “New World Order.” The fact that the political leaders of Russia and the United States are clearly being directed by such men should not be taken lightly.

China, too, has made demands for a restructuring of the global monetary system into acentralized currency basket under the dominance of the IMF.

China’s ties to the banking elite of London are well documented.

The call on both sides for a new monetary system and the end of the dollar as world reserve seems to greatly contradict the fantasy that the East and West are fundamentally at odds.  The progression towards a world currency and/or economic governance also appears to be growing along with the consolidation of economic and military ties between Eastern nations. This would suggest that the rise of the East and the crippling of Western elements is actually advantageous to global bankers in the long term.

While disinformation agents and media shills have attempted to downplay any danger to the strength of America and the dollar, Eastern governments have been swiftly establishing alliances and decoupling from U.S. influence.

The historic 30-year Russia/China gas deal has, of course, been finalized. This deal is already eating up market space and influencing the way in which the energy trade traditionally behaves.

China and Russia have also expanded on their bilateral agreements made in 2010, which remove the dollar as the reserve currency in transactions between the two nations.

China’s thirst for gold continues, while the country is now building its own gold exchange to rival the U.S. Comex.

Russia has recently established what Putin calls the “Eurasian Economic Union,” a deal which includes Kazakhstan and Belarus, two countries that hold large, freshly discovered oil fields.

In response to the engineered conflict over Ukraine, as well as the “Asian-Pacific Pivot” by the U.S., China has openly called for a new security pact with Russia and Iran.

Let’s also not forget that China is set to surpass the U.S. as the world’s largest economy by 2016, according to the Organization for Economic Co-operation and Development (OECD).

While the rise of the East is being painted in Western circles as a threat to U.S. and NATO dominance, the bigger picture is being hidden from view. Yes, indeed, the consolidation of the East is a considerable threat to the dollar and the U.S. economy — most importantly in the event that China refuses to accept dollars as payment on exports and debts. With the world’s largest exporter/importer refusing to take dollars as a reserve, most nations will inevitably follow their lead.  The argument against this development is, of course, that there is no rational trigger for such a violent fiscal attack. I would remind skeptics that there was no rational trigger for the current strengthened relations between Russia and China until the Ukraine crisis. Is anyone really foolish enough to bet against another direct or indirect conflict between NATO and the East? And is anyone really ignorant enough to assume that said event would not be used as an excuse to cut the legs out from under the dollar completely?

The New World Order players have positioned the East and West for just such a scenario. Why? In my article Who Is The New Secret Buyer Of U.S. Debt?, I give evidence indicating that the Bank of International Settlements and the IMF are preparing the financial world for a new global monetary system, brought into existence by a second Bretton Woods conference. The debasement of the dollar and the rise of the East are NOT obstacles to this plan.  Rather, they are required factors. There can be no truly global economic system without “harmonization”, the demise of the dollar’s world reserve status, and the end of sovereign economic governance.

For those who doubt this scenario, read Paul Volcker’s latest statement, as reported by Zero Hedge.

Volcker, the same man who was directly involved in the destruction of the first Bretton Woods agreement and the final death rattle of the gold standard, is now promoting a NEW Bretton Woods-style agreement in which currencies are pegged to a controlled market system — in essence, a centralized international monetary system. Volcker also suggests that a single nation-based reserve currency like the dollar may be a danger to overall fiscal health.

Volcker is right. The dollar-dominated forex casino and fiat fraud is a danger to the world. Volcker helped make it that way! And what a surprise, the former Federal Reserve chairman has a solution on a silver platter for the American people — all we need is GLOBALcentralization and bureaucratic oversight.

The propaganda is being carefully planted within the mainstream. Christine Lagarde of the IMF now spends the whole of her media interviews inserting the phrase “global economic reset” without explaining exactly what that would entail, while central banking elites like Volcker suggest a Bretton Woods II conference leading to a global monetary authority. In the meantime, Russian government-funded media outlets like RT produce pieces accusing the U.S. of being a nuclear menace while we Americans get to watch manipulative Hollywood films like “Jack Ryan: Shadow Recruit,” which depicts a Russian plot to collapse the U.S. economy.  China and U.S. representatives squabble with each other at geopolitical meetings fueling fears of diplomatic breakdown, while the Pentagon “suggests” they may have to revamp their military strategies in consideration of yet another World War.  Just as in Orwell’s book, 1984, old enemies become allies and then enemies once again, and at the top of the pyramid, it’s all a farce.

The best lies contain elements of truth. The truth here is that the East is forming alliances in opposition to the West, the West is involved in underhanded covert operations all over the planet, and both “sides” are in fact on the verge of a catastrophic battle for supremacy. The great lie is that important details have been left out of our little story. Both sides are merely puppet pieces in a grand game of global chess, and any conflict will ultimately benefit the small group of men standing over the board. They include the international financiers who have influenced the very policy fabric of each government toward a climactic crisis which they hope will finally give them the “New World Order” they have always dreamed of.

Source: Brandon Smith | Alt-Market

Crime Pays And The American Gulag

June 2, 2014 by · Leave a Comment 

Ever wonder why nobody (except Kareem Serageldin) went to jail for all the crimes committed during the financial bubble that popped in 2008?

If you think back to the 2000-era bubble, lots of people went to jail for the fraud perpetuated at Enron, Tyco, Adelphia, and other firms. Plus, the law back then destroyed a whole accounting firm — Arthur Andersen, you may remember — and 28,000 jobs along with it, in the wake of the bust.

Yet post-2000, firms with far more brazen crimes got off by paying a mere fine.

Take HSBC.

Its U.S. subsidiary committed, as Taibbi writes, “an astonishing list of crimes — a laundry list that included pretty much every kind of crime a bank can possibly be charged with.”

Such as:

  • Laundering billions of dollars for drug cartels in Mexico and Colombia
  • Washing money for terrorist-connected organizations in the Middle East
  • Allowing “rogue states” under formal sanctions by the U.S. to move billions freely through the bank
  • Helping Russian mobsters wash money under an elaborate traveler’s check scheme
  • Etc.

And what was the penalty for all this?

$1.9 billion.

At the time, it was the biggest fine in history. But in context, for a firm that made $22 billion per year, it was not much at all. In fact, looked at in a cold calculating light, the message clearly is: Crime pays.

Note there was no jail time for anybody. Everybody at HSBC got paid. Well, HSBC agreed to partially — partially, mind you – defer (!) bonus payments to its top executives.

Oh, and HSBC had to say it was sorry. “We are profoundly sorry,” said CEO Stuart Gulliver.

But how did we get here?

Matt Taibbi explores the reasons in his book The Divide. Taibbi used to write for Rolling Stone. He was the guy who famously called Goldman Sachs a “great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.” (I wish I had written that line.)

He’s a very good investigative reporter and a fine writer. He’s mellowed out a bit in this book and you won’t find much of the usual Taibbi name-calling and profanity. Taibbi, for good or ill, plays this one straight.

He covers a lot of ground, but the central thesis is one most people will intuitively grasp: If you are rich and powerful, you can get away with almost anything. Rights exist on a sliding scale. And if you are on the bottom, you can do time for loitering.

Taibbi writes:

“The cleaving of the country into two completely different states — one a small archipelago of hyper acquisitive untouchables, the other a vast ghetto of expendables with only theoretical rights — has been in the works a long time.”

But to answer the question posed up top about why nobody’s going to jail, there’s more to the story. You have to go back to a memo written by Eric Holder, the current attorney general, back in 1999, when he was an official in the Clinton White House.

He articulated a concept called “collateral consequences.”

It meant, in essence, that the government could take into account all kinds of factors like job losses and such in deciding whether to press criminal charges against a big company. “If the math isn’t there,” Taibbi writes summing things up, “hold the charges. Seek other forms of justice instead. Fines. Civil sanctions. Cease and desist orders. Deferred prosecutions. There are other ways, Holder wrote, to get the job done.”

In other words, there would never be another Arthur Andersen. Firms had new ways to wiggle out of criminal charges. Hence, we have the monster we have today. Companies too big to jail.

Meanwhile, in other aspects of life, a culture approximating a police state grows apace. Taibbi points to the record levels of incarcerations in the U.S. “Our prison population, in fact, is now the biggest in the history of human civilization,” Taibbi writes. The U.S. has more people behind bars today “than there were at any time in Stalin’s gulags.”

The story here is nasty. He tells the story of private prisons, such as those of Corrections Corp. of America. They get, “depending on whom you believe,” upward of $166 per day from the federal government per inmate. This is four times what it cost back when the government took care of its own detainees.

“The big influx of cash impressed investors on Wall Street,” Taibbi writes. From 2000-2011, CCA’s stock went up 34-fold. Sales went from $300 million to $1.7 billion by 2011. “Overall, the corrections industry is one of the soundest stock/equity bets in the world, with soaring revenues — the industry as a whole pulled in more than $5 billion in America in 2011.”

Needless to say, that didn’t just happen. CCA and others donate generously to politicians. They support anything that might lead to more people spending time in their cells. They particularly like anti-immigrant bills. And Taibbi has harrowing tales about the mistreatment of immigrants in this country. He calls Hispanic immigrants “one of America’s last great cash crops.”

“And someone else wins, too,” Taibbi writes. “Wall Street. Some of the biggest investors in private prison companies are, you guessed it, the too-big-to-fail banks.”

Taibbi writes about an analysis from Zacks that gleefully revels in the lack of economic sensitivity in the business. And then cites a chart with shows a hockey stick increase in the number of incarcerated Americans.

So the country is turning more and more into a dragnet… but only for the poorest. There is no HSBC banker sitting in a CCA cell. It is symbolic of the kind of economy we have today:

“Like too-big-to-fail banking itself, private prisons are an industry that depends not on the unpredictable economy but upon political connections. It’s the perfect kind of business in the oligarchical capitalism age, with guaranteed profits to provide a low-cost public insurance against the vagaries of the market.”

The economy is riddled with corruption like this, a marriage between big business and Big Government. And a recurring theme in this book is the offspring this marriage creates: a relentless, insatiable bureaucratic force that grinds up individuals fed into its maw.

“These bureaucracies accomplish just two things,” Taibbi writes. “They make small piles of money smaller and big piles of money bigger… It just relentlessly creates and punishes losers, who get to sit beneath an ever-narrowing group of winners, who may or may not stay on top for long.”

Legal rights are not absolute. Those with money who can tirelessly throw lawyers and lawsuits and counterlawsuits at any problem can survive almost anything. For the rest, it’s a matter of attrition. And those at the bottom have no chance.

I can’t do justice to all the journalistic fieldwork and stories Taibbi has put in his 416-page book. It is a gripping read and will infuriate you and frighten you, and maybe even make you sad for what’s happened to the “Land of the Free.”

The book does not have a happy ending. The good guys don’t win in the end. But I encourage you give it a read. What it describes is life in these United States. Those of us who cherish liberty have quite a job ahead of us.

Sincerely,

Chris Mayer

Chris Mayer studied finance at the University of Maryland, graduating magna cum laude. He went on to earn his MBA while embarking on a decade-long career in corporate banking. Chris is the editor of Capital and Crisis and Mayer’s Special Situations, a monthly report that unearths unique and unconventional opportunities in smaller-cap stocks. In 2008, Chris authored Invest Like a Dealmaker: Secrets From a Former Banking Insider.

Source: Laissez Faire

Obama’s West Point Address

June 2, 2014 by · Leave a Comment 

President Barack Obama’s commencement address at West Point on May 28 managed to displease pretty much everyone in the nation’s commentariat. Before making an overall assessment of its significance, it is necessary to examine the validity and implications of Obama’s individual statements.

“[B]y most measures America has rarely been stronger relative to the rest of the world. Those who argue otherwise – who suggest that America is in decline or has seen its global leadership slip away – are either misreading history or engaged in partisan politics.”

This key assertion, made at the beginning of the President’s address, does not stand to empirical scrutiny. In economic terms, America was far stronger vis-à-vis the rest of the world in 1945 than she is today. In more recent times, U.S. share of world GDP peaked in 1985 with just under 33 percent of global GDP (nominal). Between 2004 and 2014, United States’ share of global gross domestic product (GDP) adjusted for purchasing power parity (PPP) has fallen from 22.5 percent to 18.5 percent, and it is expected to continue falling. By the end of this year China will overtake the United States in gross domestic product, which had originally been projected to happen by the end of this decade. Analysts concede will gradually shift the ability to confer advantages or disadvantages on other countries – in other words, power – in China’s favor.

In military terms, while America enjoyed the nuclear monopoly in 1945-49, her period of undisputed unipolar dominance was between 1991 (the collapse of the USSR) and 2008 (Russia’s counterattack in South Ossetia). Although the Pentagon budget will drop from $600 billion this year to $500 billion in 2015, it will continue to account for over a third of the global total. The unsatisfactory outcomes in Iraq and Afghanistan and dented America’s image of military invincibility. As the Economist commented on May 3, “The yawning gap between Uncle Sam and his potential foes seems bound to shrink.” The prevailing view among most critical analysts is that over the past decade the U.S. has suffered military reverses, and now faces severe global competition.

As for the “global leadership,” it is unclear what exactly Obama had in mind. Russia and China are creating a powerful Eurasian counterweight to what they rightly perceive as Washington’s continuing bid for the global hegemony. India’s new prime minister is a potential partner at best, and certainly loath to acknowledge America’s “leadership.”  In the Islamic world, Obama’s attempts at appeasement – which started with the Cairo speech in 2009 – have not worked: The U.S. is now even more unpopular in the Muslim world than it was under George W. Bush. America is heartily disliked even in Turkey and Jordan, presumably our allies, not least because of the continuing drone strikes. American influence in Latin America is weaker now than at any time since Theodore Roosevelt, as manifested in the unanimous rejection of Washington’s efforts to effect a regime change in Venezuela. Members of the American elite class are hard pressed to name a single country with which the U.S. has better relations today than five years ago. The NSA global spying network has infuriated even some otherwise reliable American friends in Western Europe. Most “Old Europeans” are remarkably resistant to U.S. pressure to agree to serious sanctions against Russia.

On balance it appears that Barack Obama is the one misreading history and engaging in partisan politics.

“Meanwhile, our economy remains the most dynamic on Earth, our businesses the most innovative.”

In reality, by most value-neutral parameters the American economy is chronically weak and insolvent:

Some “dynamism,” some “innovation”…

“America continues to attract striving immigrants.”

Obama’s statement is correct. It does not illustrate America’s alleged strength as was his intent, however; it underscores this country’s major weakness. Illegal immigration is spiraling out of control, the Border Patrol is overwhelmed. If the influx continues at current high levels, the U.S. population will increase to almost half a billion in 2060 – more than a 50 percent increase. New immigrants – mostly from the Third World, unskilled, uneducated, and a net drain on American resources – and their descendants will account for over one hundred million of that increase. On current form, English-speaking Americans of European origin will become a minority in their own country four decades from now. They will inhabit an increasingly overpopulated, polluted, lumpenproleterized, permanently impoverished country. America unfortunately does continue “to attract striving immigrants,” mostly illegal ones and of poor quality. This is far greater threat to the survival of the United States in a historically or culturally recognizable form than terrorism or any conceivable alliance of foreign powers. Barack Obama does not understand this, or does not care, or – just as likely – cherishes the prospect.

“The values of our founding inspire leaders in parliaments and new movements in public squares around the globe.”

By “public squares” Obama was probably alluding to Kiev’s Maidan. Indeed, it has propelled some “new movements” to global prominence, such as the Svoboda party and the Right Sector. The Founding Fathers would be horrified to learn that, in the opinion of the President of the United States, their values have inspired Messrs. Tyahnybok, Yarosh, and other blood-soaked heirs to Stepan Bandera. This is on par with Senator Joseph Lieberman saying, “The United States of America and the Kosovo Liberation Army stand for the same values and principles. Fighting for the KLA is fighting for human rights and American values.”

“And when a typhoon hits the Philippines, or schoolgirls are kidnapped in Nigeria, or masked men occupy a building in Ukraine, it is America that the world looks to for help.”

Obama is mixing apples (natural disasters) and pears (man-made ones). The problem of Islamic terrorism in Nigeria was exacerbated by the refusal of the Department of State under Hillary Clinton to place Boko Haram (“Secular Education is Sinful”) on the list of foreign terrorist organizations in 2011, despite the urging of the Justice Department, the FBI, the CIA, and over a dozen Senators and Congressmen. The de facto protection thus given to Boko Haram has enabled it to morph into a state-within-the-state with an estimated 300,000 followers.

It would be ironic if “the world” were to look to America for help in Ukraine (which in any event it does not), since the course of crisis there has been, overwhelmingly, of Washington’s own making, as manifested in Victoria Nuland’s famous phone call to Ambassador Pyatt. The new Drang nach Ostenmakes sense from the point of view of the liberal globalist-neoconservative duopoly: there is no better way to ensure U.S. dominance along the European rimland in perpetuity than drawing Europe back into NATO (i.e. U.S.) security orbit in general and subverting the Russo-German rapprochement in particular. The “masked men” in buildings are a direct consequence of American meddling.

“So the United States is and remains the one indispensable nation. That has been true for the century past, and it will be true for the century to come.”

It has never been true, it is not true now, and it never will be true. Madeleine Albright’s famous dictum was an arrogant statement by an immigrant ignorant of American history and a sign of her well-attested instability. It was reiterated in Bill Clinton’s 1996 speech, where he explained why he intervened, disastrously, in Bosnia: “The fact is America remains the indispensable nation. There are times when America, and only America, can make a difference between war and peace, between freedom and repression, between hope and fear.” That Obama has chosen to recycle such rubbish is a sign of intellectual and moral bankruptcy. “Indispensable” to whom, exactly? It is unimaginable for the leader of any other country in the world – Vladimir Putin, say, or Xi Jinping – to advance such a claim. It is tasteless at best and psychotically grandomaniac at worst, a latter day “Manifest Destiny” on steroids. The problem is that such hubristic delusions easily translate into non-negotiable foreign policy objectives. Resisting the will of the “indispensable nation” is ipso facto evil: Susan Rice’s condemnation of Chinese and Russian vetoes of the U.S.-supported UN Security Council resolution on Syria as “disgusting,” “shameful” and “unforgivable” comes to mind.

“Russia’s aggression towards former Soviet states unnerves capitals in Europe while China’s economic rise and military reach worries its neighbors.”

Quite apart from the genesis of the crisis in Ukraine, to which “Russia’s aggression” hardly applies, Obama’s use of the term “former Soviet states,” plural, implies that in his opinion Ukraine is not the only “victim of Russia’s aggression.” Presumably he means Georgia, the only “former Soviet state” with which Russia has had a conflict since the collapse of the Soviet Union. If so, and there is no other explanation for his turn of his phrase, Obama has a dangerously flawed understanding of the August 2008 Georgian crisis.

Georgian then-President Mikheil Saakashvili’s order to attack South Ossetia’s capital, Tskhinvali, was a breathtakingly audacious challenge to Russia, to which she was bound to react forcefully. That response was promptly exploited, for the first time since Gorbachev, by the American mainstream media machine and the foreign-policy community in Washington to paint Russia as a rogue power that is not only dangerous but intrinsically malignant. The vehemence of that rhetoric exceeded anything ever said or written about jihad, before or after September 11. To be fair, Saakashvili was led to believe that he was tacitly authorized to act as he did. President George W. Bush had treated Georgia as a “strategic partner” ever since the Western-engineered “Rose Revolution” five years earlier, and in early 2008 he strongly advocated NATO membership for Georgia. Washington had repeatedly supported Georgia’s “sovereignty and territorial integrity,” which implied the right to use force to bring South Ossetia and Abkhazia to heel, just as it is supporting “resolute action” in Donetsk and Lugansk today. Saakashvili may be forgiven for imagining that the United States would have bailed him out if things went badly. It is noteworthy that he was not disabused of such notions. The calculus in Washington appears to have been based on a win-win scenario, not dissimilar to the current Ukrainian strategy. Had Georgian troops occupied South Ossetia in a blitzkrieg operation modeled after Croatia’s “Operation Storm,” while the Russians remained hesitant or ineffective, Moscow would have suffered a major strategic and (more importantly) psychological defeat after almost four years of sustained strategic recovery. If Russia intervened, however, she would be duly demonized and the U.S. would push for NATO consolidation with new vigor. “Old” Europeans – the Germans especially – would be pressed to abandon their détente with Moscow. A resentful Georgia would become chronically anti-Russian, thus ensuring a long-term American presence in the region.

In the event, like the Ukrainian army today, the Georgian army performed so poorly that a military fait accompli was out of its reach. Excesses against Ossetian civilians – just like the shelling of schools in Slavyansk today – made the “victim of aggression” narrative hard to sell, Obama’s “aggression” rhetoric notwithstanding.

“The question we face… is not whether America will lead but how we will lead, not just to secure our peace and prosperity but also extend peace and prosperity around the globe.”

It is unclear how, if at all, America will secure her own “peace and prosperity” in the years and decades to come, let alone how she can extend it “around the globe.” If this is a statement of Obama’s grand strategy, it is flawed in principle and unfeasible in detail. In this statement there is not a hint of an overall blueprint for action that matches our country’s resources to her vital interests. A sound grand strategy enables a state to deploy its political, military, economic, and moral resources in a balanced and proportionate manner, in order to protect and enhance its security and promote its well-being, never mind “the globe.” In Obama’s universe, however, there are no brains behind “indispensable,” heavy-handed diplomacy and military power. Obama creates a false dilemma (“the question we face”) unsupported by facts. China, India, Russia, the Muslim world and Latin America do not want to be “led,” quite the contrary. Old Europe is reluctant at best. Subsaharan Africa is an irrelevant mess. The question we face is not global leadership, but national survival.

“Regional aggression that goes unchecked, whether in southern Ukraine or the South China Sea or anywhere else in the world, will ultimately impact our allies, and could draw in our military. We can’t ignore what happens beyond our boundaries.”

This simultaneous dig at Russia and China reflects a hubristic world view that is unmatched by conflict-management resources. A sane American relationship with Moscow demands acceptance that Russia has legitimate interests in her “near-abroad.” Obama’ four-nation tour of East Asia last Aprilescalated existing U.S. military commitments to the region, created some new ones, deeply irritated China, and emboldened American allies and clients to play hardball with Beijing. Obama does not understand that it is extremely dangerous for a great power to alienate two of its nearest rivals simultaneously. The crisis in Ukraine is going on, but the situation in Asia is potentially more volatile. Dealing with both theaters from the position of presumed strength and trying to dictate the outcomes is perilous, as many would-be hegemons (Philip II, Louis XIV, Napoleon, Kaiser Wilhelm, Hitler), blinded by arrogance, have learned to their peril. Obama has continued the hegemonist habit of instigating crises at different spots around the world, even though the resources are scarce and the strategy is fundamentally faulty. An overtly anti-U.S. alliance between Russia and China is now in the making. U.S. overreach led to the emergence of a de facto alliance in the Eurasian Heartland, embodied in the gas deal signed in Shanghai. Russia and China are not natural allies and they may have divergent long-term interests, especially in Central Asia, but they are on the same page when it comes to resisting U.S. hegemony, pardon, “leadership.” In the early 1970’s Dr. Henry Kissinger wisely understood the benefits of an opening to Beijing as a means of pressuring Moscow on the Cold War’s central front. Back then the USSR was far more powerful than the People’s Republic. Today, by contrast, China is much more economically and demographically powerful than Russia, and for the United States the optimal strategy would dictate being on good terms with the weaker party in the triangle. America does not have a policymaker of Kissinger’s stature today, who would understand the potential of a long-term understanding with Moscow as a tool of curtailing Chinese ambitions along the Pacific Rim.

“America must always lead on the world stage. If we don’t, no one else will. The military that you have joined is, and always will be, the backbone of that leadership.”

The notion that “the world stage” demands a “leader” is flawed. It is at fundamental odds with the balance-of-power paradigm, which has historically secured the longest periods of peace and unprecedented prosperity to the civilized world. Today’s world is being multipolarized, whether Obama the Exceptionalist likes that or not. The very idea of the self-awarded “world leadership” would appear absurd in the days of Bismarck or Metternich. Washington has neither the resources nor the minds for such a role, even if it were called for.

“The United States will use military force, unilaterally if necessary, when our core interests demand it — when our people are threatened; when our livelihoods are at stake; when the security of our allies is in danger.”

None of the above applied in Bosnia, Kosovo, Afghanistan, Iraq, or Libya… but enough of Obama. There was more rhetoric at West Point, including an ode to American exceptionalism and further references to America’s global leadership, but it just as tedious, vacuous and intellectually wanting as the first ten minutes of his address.

Overall, it is evident that the United States in Barack Obama’s final term has not given up the hegemonist habit of instigating crises at different spots around the world, even though the management resources are scarce and the strategy is fundamentally faulty. An overtly anti-U.S. alliance between Russia and China is now in the making. It will be a belated equivalent of the Franco-Russian alliance of 1893 – the predictable result of an earlier great power, Wilhelm’s Kaiserreich, basing its strategy on hubristic overestimation of its capabilities. U.S. overreach has led to the emergence of a de facto alliance in the Eurasian Heartland, embodied in last month’s energy agreement signed in Shanghai. Russia and China are not natural allies and they may have divergent long-term interests, especially in Central Asia, but they are on the same page when it comes to resisting U.S. hegemony.

In the early 1970’s Dr. Henry Kissinger wisely understood the benefits of an opening to Beijing as a means of pressuring Moscow on the Cold War’s central front. Back then the USSR was far more powerful than the People’s Republic. Today, by contrast, China is much more economically and demographically powerful than Russia, and for the United States the optimal strategy would dictate being on good terms with the weaker party in the triangle. It is unfortunate that America does not have a policymaker of Kissinger’s stature today, who would understand the potential of a long-term understanding with Moscow as a tool of curtailing Chinese ambitions along the Pacific Rim.

Judging by the West Point address, for the remaining two and a half years of Obama’s term U.S.-initiated global confrontations will continue as before. Instead of de-escalating the bloody mess to which she has made a hefty contribution, Victoria Nuland will continue encouraging her blood-soaked protégés in Kiev to seek a military end-game in the East. Instead of calming the South China Sea, Washington will continue encouraging its clients to be impertinent. And Putin and Xi will draw their conclusions: that they do have a powerful common enemy, a rogue regime not amenable to reason or rational calculus.

It cannot be otherwise, considering the Obama Administration’s 2012 Defense Strategic Guidance, which is but a rehash of the strategic assumptions of the Bush era. In Obama’s words from two years ago, our “enduring national interest” is to maintain the unparalleled U.S. military superiority, “ready for the full range of contingencies and threats” amid “a complex and growing array of security challenges across the globe.” The Guidance itself asserts that the task of the United States is to “confront and defeat aggression anywhere in the world.” This is not a grand strategy but a blueprint for disaster—especially when combined with the interventionists’ urge to “confront and defeat” not only aggression as such but also “aggression” resulting from  internal conflicts irrelevant to the American interest (Syria, Ukraine) and putative threats to regional stability (Iran).

Obama is a more reluctant interventionist than McCain or Romney would have been, but he, too, does not recognize the limits of American power and does not correlate that power with this country’s security and prosperity. He fails to balance military and nonmilitary, short and long-term capabilities. He rejects the fact that the world is becoming multipolar again, while the relative power of the United States is in steady decline. Obama’s absence of a viable grand strategy produces policies that are disjointed, nonsensical, and self-defeating. He is prone, no less than his predecessor, to equate any stated political objective in some faraway land with America’s vital interests, without ever offering a coherent definition of those “vital” interests.

On both sides of the duopoly, the ideology of American exceptionalism and the doctrine of global dominance reign supreme. At a time of domestic economic weakness and cultural decline, foreign policy based on the American interest requires prudence, restraint, and a rational link between ends and means. Abroad, it demands disengagement from distant countries of which we know little; at home, a sane immigration policy.

It will not happen.


Srdja (Serge) Trifkovic, author, historian, foreign affairs analyst, and foreign affairs editor of “Chronicles.” He has a BA (Hon) in international relations from the University of Sussex (UK), a BA in political science from the University of Zagreb (Croatia), and a PhD in history from the University of Southampton (UK).

www.trifkovic.mysite.com

Dr. Srdja Trifkovic is a regular columnist for Veracity Voice

Globalism In Tulsa Oklahoma: A Corrupt Sanctuary

May 31, 2014 by · 9 Comments 

How corrupt has America become? It has become as corrupt as globalism itself, a byproduct in international greed, where the gutting of good paying jobs has relegated the United States to being nothing more than a third rate country with a first rate war machine. An essential aspect to what we regard as the American economy today is its reliance on fraud and corruption, from the banking sector to corporations exporting and outsourcing good jobs with the help of a political class that is not only fraudulent but treasonous to the extreme, they are driving America towards an abyss that it will not come back from.

Waging international war for resources under false pretenses is a globalists wet dream, and under the cloak of the nefarious “war on terror,” multinational defense and security firms have made trillions of dollars over the last decade. They destroy so they can rebuild, and all the human collateral damage is just an unsightly part of doing business.

Another perverse aspect to globalism is massive illegal immigration under the disreputable banner of multiculturalism, for some shady businesses in America the profit margins can increase exponentially by hiring illegal workers over Americans.

Corporations hire illegal workers to keep wages low, and benefits to an absolute minimum. Americans are shunned for unquestioning cheep labor, and governments allow and foster this fraud to the detriment of many Americans. Some Americans, if you can still call them Americans, profit greatly in this perverse atmosphere of fraud.  The Federal government consistently places the interests of illegal aliens and businesses who hire them over and above American workers and the ‘rule of law’.

A case in point is Oklahoma, specifically Tulsa, Oklahoma, which has become a hotbed of greed and corruption. Tulsa is what some call a sanctuary city, where tens of thousands of illegal workers are in jobs that Americans are obviously not occupying. This ugly fact is good for some corporations and businesses, expanding their profits by paying undocumented workers low wages with no real benefits. What does it cost the American tax payers when these illegal workers have babies and use the medical industry with false identities, who foots the medical bills?  It defiantly is not businesses or the governments.

Another case in point is a company called Name Brand Clothing; based in Tulsa, it has stores in six states, the company sells salvage clothing at 75 percent off retail and it prefers to hire illegal workers instead of Americans. It is the proverbial ‘poster child’ for corporate greed and corruption in Tulsa, Oklahoma.

Why does it hire illegal workers? Well, first of all, it is about greed, making some people rich at the expense of everyone else. The managers at Name Brand Clothing generate outrageous bonuses by essentially suppressing wages on all hourly paid employees year after year. They choose illegal workers because illegal’s do not complain about being stuck on minimum wage for years on end with no real medical benefits and no paid holidays.

The owners and managers of Name Brand Clothing knowingly and willingly submit false identifications and Social Security Numbers to the IRS and to the Oklahoma Tax Commission, which is of course contrary to both federal and state laws. They have been doing this for over a decade, and they can commit these criminal acts because Federal and State governments are currently as corrupt and dishonest as companies like Name Brand Clothing.

Veracity Voice interviewed a long time worker at Name Brands Clothing for an inside examination into the workings of corporate greed and corruption that currently plagues corporate America.

We are protecting the person’s identity because the person is still currently employed by the company. We will refer to that person as the ‘Employee’.

Veracity Voice: How long have you been working for Name Brands?

Employee: I rather not say exactly since I still work for them, lets just say that I have been employed at Name Brands for about 10 years, give or take a couple of years.

Veracity Voice: What do you do there?

Employee: Again, I rather not say exactly, lets just say I worked in the head office, and have seen the corruption first hand.

Veracity Voice: Why have you decided to speak out at this time, and not before?

Employee: Actually I did in a way speak about this before; I wrote a letter to the Sheriff’s department, and the FBI about 4 years ago. I also wrote letters too FOX 23 and Channel Six News, concerning the outlandish fraud and corruption happening at Name Brands, and absolutely nothing came of it. It seems that it is not PC to talk about this issue in Tulsa; the mainstream media won’t touch it. That is why I am talking with Veracity Voice; the only outlet whistleblowers have today in America is in the alternative media.

Veracity Voice: Are you saying that the mainstream media is covering it up?

Employee: In a way they are by not reporting all the law breaking going around Tulsa as far as hiring illegal workers by businesses, they certainly seem to be part of the club, and will not rock the boat.

Veracity Voice: What Club?

Employee: Corrupt businesses, Local, State and Federal governments that allow the criminal behavior, the police departments that will not enforce the law and mainstream media that will not report any of it. It is one big corrupt club.

Veracity Voice: What kind of fraud and corruption have you seen at Name Brands?

Employee: Well, you can compare the greed and corruption at Name Brands along the lines of what’s happening in Wall Street and the financial system, some people are profiting greatly through outright fraud and thievery at the expense of everyone else, and government is engaged in helping the criminality.

At Name Brands, the fraud is done by submitting false ID’s and Social Security Numbers (SSN) to the IRS. I’ve seen with my own eyes management turn away American workers seeking work then turn around and hire illegals. The main reason they do this, Is because the illegals are content to work for minimum wage with no real benefits. Essentially, they keep everyone’s wages stagnant except for management.

Veracity Voice: What do you mean except for management?

Employee: The lower the costs for running the business, the higher the bonuses for management, its classic corporate greed. Management at Name Brands make large sums of money in the form of bonuses while all other workers do not receive real medical benefits or paid holidays except for two, Thanksgiving and Christmas, and those two paid holidays are highly conditional.

Veracity Voice: Highly conditional?

Employee: Yes, two weeks prior to Thanksgiving and Christmas if an employee is late for work for any reason Name Brands will not pay you for the holiday.

Veracity Voice: You’re kidding right?

Employee: No, unfortunately I’m not kidding. At Name Brands it’s a culture of nepotism and greed, like the saying goes “there is no honor among thieves” there is no honesty, no real integrity, just godless corruption. There is one woman, who has worked for the company for 17 years, and she has only received one 5 cent raise not counting minimum wage increases. It’s outright disgusting how they treat workers.

Veracity Voice: Why does she stay?

Employee: Well, some people have problems, and finding other employment can be difficult.

Veracity Voice: What kind of problems?

Employee: All sorts of problems like emotional and mental problems, in some cases drug problems, other cases workers being ex-convicts, finding employment can be difficult. Like some parasite, companies like Name Brands like to take advantage of the most vulnerable and disadvantaged in society, that’s why they like illegals; they can thieve from them without any complaint, protected by corrupt governments. Most self-respecting Americans will not work for a company that treats hourly workers like trash.

Veracity Voice: Let’s get back to the fraud, how many illegals are they employing?

Employee: At TPC which is Name Brands production center in North Tulsa, they usually have around 80 illegals working there, and at their store in South Tulsa there are about 10.

Veracity Voice: That many?

Employee: Yes, it’s absolutely incredulous and in your face. It is both frustrating and depressing at the same time to see this traitorous conduct on a daily basis. It is time for Americans to take a stand against these globalists that are profiting through corruption.

Veracity Voice: Who are the people that run Name Brands Clothing in Tulsa?

Employee: As far as I know, Rusty Gaddy is the CEO, Jim Stevenson and Jim Breese are VP’s. At TPC there is Reid Lewellin and Jason Garman, both managers, and Brent Daily is the manager at the Tulsa Store, they all commit fraud on a daily bases. They do not care for America or Americans, all they care about is increasing their bonuses at the expense of everyone else, and what really bothers me is that the governments, both at the local and federal level engage in the same fraud, they do absolutely nothing about it. The Federal government knows very well that Name Brands has for well over a decade submitted thousands of false ID’s and SSN’s. This is criminal behavior at both the local and Federal level when the government chooses not to enforce its own laws.

Veracity Voice: What do you think should be done with these people?

Employee: These people are more than thieving fraudsters, they are traitors to the country and its people, so I say arrest Rusty Gaddy, arrest Jim Breese, arrest Jason Garman and Reid Lewellin, and arrest all of the crooks that run the criminal enterprise called Name Brands Clothing. These people are also very cowardly, if they find out that any employee is against their corruption they will slander him or her with false accusations, they will make up stuff to make that employee look bad. The two most egregious slanderers at Name Brands are Jason Garman and Jim Breese, they will slander and harass you to the point of desperation, and people will quit their jobs because of the continual harassment.

Veracity Voice: Job harassment is a crime.

Employee: Yes, and they get away with that too.

Veracity Voice: Talk a little bit about the one man that has used more than one ID to work at Name Brands.

Employee: Ya, he has three different aliases. I do not know which one is his real name, all I know is that Name Brands went out and got him a new fake ID, when they found out that the old ID the man was using belonged to a another man.

Veracity Voice: Where did they get the fake ID?

Employee: I do not know for sure, I heard that they went to some website run by the Federal government, and it provided Name Brands with a fake ID.

Veracity Voice: What do you think should be done with companies that choose to break the law as a regular part of doing business?

Employee: Again, arrest and prosecute the criminals, if law enforcement will not do their jobs, then Americans need to start fighting back by boycotting corporations like Name Brands that fragrantly and openly break the law. I mean these people act like it’s the turn of the 20th century or something; these anti-American globalists – at the end of the day that’s what these people really are – Name Brands conducts business like multinationals that run sweatshops all over the third world. They help create the culture of illegal behavior, by giving employment to illegals, which allows the illegals to stay in the city, drive vehicles without drivers licenses and insurance, use emergency Heath Services at taxpayer cost, they currently function ‘above the law’ and all accountability. Real Americans need to stand up against these criminals before they completely destroy this country.

Veracity Voice: Many in the business sector and in the political establishment will argue that the illegals fill jobs that Americans will not do, this reasoning is also pushed by the mainstream media, what do you say to this reasoning?

Employee: I think it is a false argument, I’ve seen with my own eyes Name Brands turn away Americans willing to work, in some cases desperate for a job, they are turned away in favor of hiring illegals. So, that kind of reasoning is nothing more than an illusion.

Veracity Voice: Some will charge you with racism for holding these views, how do you respond to this kind of slander?

Employee: It has been my experience that those that accuse people of being racist are in fact racists themselves. They falsely accuse others of being racist so they could push their nefarious agenda by smearing the reputations of those that are opposed to their mendacity and corruption. The charge of racism holds no water in the case of illegal immigration.

Veracity Voice: Why don’t you look for another job?

Employee: I am its not easy finding work these days. And if I quit, I probably will not be able to collect unemployment benefits if I can’t find a job.

Veracity Voice: Why?

Employee: Because Name Brands will fight against your right to obtain unemployment insurance, its company policy. They will send their managers to testify against your eligibility for unemployment benefits, and they will without any hesitation, lie and malign anyone applying for the benefits.

Veracity Voice: They have done this before, entered false information against former employees to the Unemployment Bureau?

Employee: Yes, many times, and they get away with that too, companies like Name Brands function ‘above the law,’ and it must stop now.

Veracity Voice: Thank you for your time.

Employee: You’re welcome.

The massive unrestrained flux in illegal immigration has changed the demographics of Tulsa, forcing many businesses to provide bilingual services, including city and state government services at great cost to the taxpayer. It is the ongoing balkanization of the city where east Tulsa is now known as little Mexico, a criminal and negative phenomenon that is currently occurring in many cities across the nation.

Back In The Red

May 30, 2014 by · Leave a Comment 

“I liken the economy to a car on a flat road that has no momentum. When you take your foot off the gas, the car just stops moving.” — Stephanie Pomboy, Interview Barron’s

If you follow the stock market, you probably think the economy is sizzling. But if bonds are your thing, then you probably think we’re still in recession.

So which is the better gauge of what’s going on in the real economy; stocks or bonds?

The bond market is more accurate. And recently, long-term yields have been dropping like a stone which is not a good sign for the economy. Investors seem to think that slow growth and low inflation are here to stay, and they could be right. According to Bloomberg, “Falling yields on longer-term Treasuries historically reflect periods of lackluster growth. Since 1960, they have predicted seven of the last eight recessions when 10-year yields fell below 3-month bill rates.” As of today, the benchmark 10-year UST is a dismal 2.44 percent.

The reason investors have been piling back into Treasuries is because is the labor market is weak and there’s no sign of inflation anywhere. When wages stagnate and incomes drop–as they have since the slump ended– then there’s no upward pressure on prices because everyone is making less dough, so there’s less demand, less growth and, hence, less inflation. Of course, Obama could have fixed the situation by holding off on slashing the deficits or by increasing the amount of stimulus in his fiscal package. That would have circulated more money into the economy boosting employment and revving up growth. But that would have put the economy back on its feet again which was not what he wanted. What he wanted was to grind working people into the ground by keeping the economy on life-support while his chiseling Wall Street buddies made out like bandits on the latest stock market bubble. The Wall Street Journal explains what’s going on:

“Bond yields are – once again – plunging worldwide. The reason for this revived buying among fixed-income investors is that central banks are – once again – signaling their intent to ease monetary conditions in yet another bid to kick-start sluggish economies and forestall a downward spiral in prices, or deflation. The prospect that central banks will continue to inject money into the world’s bond markets…has acted as a green light for the world’s bond buyers.”

So investors think the Fed will have to taper the “Taper” and start buying more government paper. But why?

Because they have no choice. Many of the usual buyers of US Treasuries have cut back on their monthly purchases or stopped buying altogether. That means that rates will have to rise to attract more buyers unless the Fed makes up the difference. Check out this blurb from Barron’s interview with Stephanie Pomboy:

“Foreigners are buying about $10 billion a month of Treasuries. This compares with deficit financing needs for the U.S. government of roughly $40 billion a month, based on this year’s deficit. So the Fed needs to pick up roughly $30 billion a month in slack. When the Fed slashed its buying to $25 billion, effective this month, it for the first time opened up a demand deficit for Treasuries. If they continue to taper, that gap will expand, and things could get bumpy in the Treasury market. Rates won’t go up five basis points before the Fed would start talking about more QE.” (Barrons Interview Posits Weak US Economy, Barron’s)

It’ll get bumpy alright, real bumpy. Higher rates will send housing and stocks into freefall. The Fed will have no choice but to step in to stop the bleeding.

The economy is already suffering from chronic lack of demand. Add higher rates to the mix, and cost-conscious consumers are going to cut back on everything from auto loans to nights-on-the-town. Yellen’s not going to let that happen. She’s going to come up with some cockamamie excuse for buying more USTs and hope-like-hell that wages and incomes rebound so she can start tapering again.

This illustrates the conceptual flaw in Central Bank policy. QE and zero rates are supposed to reduce the price of money, thereby enticing consumers to take out loans and spend like crazy. That, in turn, is supposed to generate more activity and stronger growth. But there’s a slight glitch to this theory, that is, consumers aren’t the brain-dead lab rats the Fed thinks they are. Most people don’t base their spending decisions on price alone. Sometimes, for example, it doesn’t make sense to borrow money no matter how cheap it is. The average working stiff doesn’t give a rip if he can get a loan at 3.5 percent when his credit card is already maxed out and the only job he can find is working graveyard at Jack in the Box. That guy doesn’t need more debt, he needs a decent paying job. Here’s how the managing partner of MBMG Group, Paul Gambles explained the phenom in an interview on CNBC:

“People and businesses are not inclined to borrow money during a downturn purely because it is made cheaper to do so. Consumers also need a feeling of job security and confidence in the economy before taking on additional borrowing commitments.” (Washington’s blog via Zero Hedge)

Bingo. Of course, the members of the Fed know that this whole “cheap money” thing is bogus, but they keep reiterating the same blather so they can keep the wampum flowing to their crooked friends on Wall Street. It’s worth noting that: since the end of the recession, “one-third of all income increases in this country went to just 16,000 households, 95 percent of it went to the top 1 percent, and the bottom 90 percent’s incomes fell, and they fell by 15 percent.”

In other words, the Fed knows exactly how QE works, (and who benefits) and it has nothing to do with extending credit to working people. That’s malarkey. It’s all about providing limitless liquidity for financial speculators so they can send stocks into the stratosphere and rake in record profits. Here’s a blurb from a piece by Zero Hedge that helps to illustrate what’s going on:

“According to the most recent CapitalIQ data, the single biggest buyer of stocks in the first quarter were none other than the companies of the S&P500 itself, which cumulatively repurchased a whopping $160 billion of their own stock in the first quarter!

Should the Q1 pace of buybacks persist into Q2 which has just one month left before it too enters the history books, the LTM period as of June 30, 2014 will be the greatest annual buyback tally in market history.” (Here Is The Mystery, And Completely Indiscriminate, Buyer Of Stocks In The First Quarter, Zero Hedge)

Why are companies buying shares of their own stock, you ask, when buybacks add no productive value to a company at all?

It’s because it gooses stock prices which makes shareholders happy. It’s a complete scam. And it’s a huge scam, too. Currently, total stock buybacks represent a whopping $4 trillion or 20 percent of the total stock market value. Just think of the walloping prices are going to take when these same shareholders decide it’s time to bail out? Look out below!

Now get a load of this clip from Action Forex:

“Disappointment over the pace of economic growth explains at least some of the downturn in yields. The U.S. economy very likely contracted in the first quarter of the year, perhaps by as much as 1.0% annualized … Even with a strong bounce back in the second quarter … – the average pace of growth in the first half of the year will be a tepid 2.0%, about the pace it’s been since the end of the recession…

The retrenchment in yields also reflects events abroad … However, there is perhaps another reason for the decline in yields that is more pernicious. There is the realization that even after the recovery has run its course, economic growth is likely to be slower than it has been in the past. Slower growth means that as the fed funds rate eventually moves off the floor, it will not go back to the 5.25% it was prior to the Great Recession or even the 4.0% it averaged over the quarter of a decade prior. Expectations of “lower forever”…increasingly appear to be built into longer-term interest rates.” (A year in the bond market, Action Forex)

Did you catch that part about “lower forever”?

What the author means is that the economy has reset at a lower level of activity and will not return to normal. This is an admission that the managers of the system have no intention of fixing what’s wrong; cleaning up the banks, writing down the debts, regulating the system, increasing workers buying power (boosting demand) or providing sustained fiscal stimulus until unemployment and growth are back where they should be. Instead, basic macro has been replaced with public relations, that is, a swindle that’s spearheaded by faux-liberal icons Krugman and Summers who are pushing the “secular stagnation” folderol which is just a lame excuse for maintaining the status quo plus a few anemic add-ons, like infrastructure projects. Big whoop. It’s all a fig leaf for maintaining the same wealth shifting monetary policies that are in place today.

So this is it? Are we really doomed to a future of high unemployment and slow growth?

The IMF seems to think so. Here’s an excerpt from an article by Nick Beams which gives a rundown on a recent IMF report that was ignored by the media. The article is titled “No end to economic breakdown”:

“Almost six years after the eruption of the global financial crisis, the International Monetary Fund has effectively ruled out any return to the economic growth rates that preceded September 2008.

Two major chapters of the IMF’s World Economic Outlook … provide a gloomy assessment of the state of the world economy. In the advanced economies, investment is falling as a proportion of gross domestic product (GDP), while in the “emerging markets,” there is no prospect for growth rates to return to pre-2007 levels.

The IMF notes that real interest rates have been declining since the 1980s and are “now in slightly negative territory.” But this has failed to boost productive investment. On the contrary, what it calls “scars” from the global financial crisis “have resulted in a sharp and persistent decline in investment in advanced economies.” Between 2008 and 2013, there was a two-and-a-half percentage point decline in the investment to GDP ratio in these countries. The report adds that ratios “in many advanced economies are unlikely to recover to pre-crisis levels in the next five years.”

This conclusion is of immense significance given the critical role of investment in the functioning of the capitalist economy … Investment…is the key driving force of capitalist economic growth … But if investment stagnates or declines, the circle turns vicious. This is what is now taking place.” IMF report: No end to economic breakdown (april), wsws

So no return to normal, after all. The American people are now facing a long period of high unemployment and slow growth that will shrink the middle class and change the country in ways we can hardly imagine. It’s unavoidable. It’s the policy.

NOTE: As this piece was going to press, the Wall Street Journal announced that “revised” First Quarter GDP contracted at a 0.6% annual rate. So while stocks have been setting records almost daily due to the massive injections of money from the Fed, the economy is steadily sliding towards recession.


Mike Whitney is a regular columnist for Veracity Voice

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

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