If This Doesn’t Make You Mad…
Why is the Fed threatening to raise interest rates when the economy is still in the doldrums? Is it because they want to avoid further asset-price inflation, prevent the economy from overheating, or is it something else altogether? Take a look at the chart below and you’ll see why the Fed might want to raise rates prematurely. It all has to do with the sharp decline in petrodollars that are no longer recycling into US financial assets. This is from Reuters:
“Energy-exporting countries are set to pull their ‘petrodollars’ out of world markets this year for the first time in almost two decades, according to a study by BNP Paribas. Driven by this year’s drop in oil prices, the shift is likely to cause global market liquidity to fall, the study showed…
This decline follows years of windfalls for oil exporters such as Russia, Angola, Saudi Arabia and Nigeria. Much of that money found its way into financial markets, helping to boost asset prices and keep the cost of borrowing down, through so-called petrodollar recycling.
This year, however, the oil producers will effectively import capital amounting to $7.6 billion. By comparison, they exported $60 billion in 2013 and $248 billion in 2012, according to the following graphic based on BNP Paribas calculations:
‘At its peak, about $500 billion a year was being recycled back into financial markets. This will be the first year in a long time that energy exporters will be sucking capital out,’ said David Spegel, global head of emerging market sovereign and corporate Research at BNP.
In other words, oil exporters are now pulling liquidity out of financial markets rather than putting money in. That could result in higher borrowing costs for governments, companies, and ultimately, consumers as money becomes scarcer.” (Petrodollars leave world markets for first time in 18 years – BNP, Reuters)
Can you see what’s going on?
Now that petrodollar funding has dried up, the Fed needs to find an alternate source of capital to keep the markets bubbly and to shore up the greenback. That’s why the Fed has been talking up the dollar (“jawboning”) and promising to raise rates even though the economy is still pushing up daisies. According to the Fed’s favorite mouthpiece, Jon Hilsenrath:
“Federal Reserve officials are on track to start raising short-term interest rates later this year, even though long-term rates are going in the other direction amid new investor worries about weak global growth, falling oil prices and slowing consumer price inflation…
Many Fed officials have signaled they expect to start lifting their benchmark short-term rate from near zero around the middle of the year. Recent developments in the economy and markets have caused some trepidation among Fed officials and, if sustained, could cause them to delay acting. However several have indicated recently they still expect to move this year and are withholding judgment on delay.” (Fed Officials on Track to Raise Short-Term Rates Later in the Year, Jon Hilsenrath, Wall Street Journal)
And we’re hearing the same from Reuters: “The Federal Reserve is still on track for a potential mid-year interest-rate increase, a top Fed official said on Friday, citing strong U.S. economic momentum and a falling unemployment rate.”
Notice the sudden change in tone from dovish to hawkish? Expect that to intensify in the months ahead as the major media tries to spin the data in a way that serves the Fed’s broader objectives. Like this article in Bloomberg titled, “Yellen Signals She Won’t Babysit Markets in Turmoil”:
“Janet Yellen is leaving the Greenspan ‘put”’behind as she charts the first interest-rate increase since 2006 amid growing financial-market volatility.
The Federal Reserve chair has signaled she wants to place the economic outlook at the center of policy making, while looking past short-term market fluctuations. To succeed, she must wean investors from the notion, which gained currency under predecessor Alan Greenspan, that the Fed will bail them out if their bets go bad — just as a put option protects against a drop in stock prices.
“The succession of Fed puts over the years has led to a wide range of distortions in financial markets,” said Lawrence Goodman, president of the Center for Financial Stability, a monetary research group in New York. “There have been swollen asset values followed by sharp declines. This is a very good time for the Fed to move away.
“Let me be clear, there is no Fed equity market put,” William C. Dudley, president of the New York Fed, the central bank’s watchdog on financial markets, said in a Dec. 1 speech in New York.” (She’s No Greenspan: Yellen Signals She Won’t Babysit Markets in Turmoil)
“There’s no Fed equity put”?
That’s ridiculous. Then how does one explain the way the Fed has launched additional rounds of QE every time stocks have started to sputter? And how does one explain the Fed’s $4 trillion balance sheet all of which was spent on financial assets?
Let’s face it, Central bank intervention has been the only game in town. It’s not just the main driver of stocks. It’s the only driver of stocks. Everyone knows that. Yellen is going to do everything in her power to keep stocks in the stratosphere just like her predecessors, Greenspan and Bernanke. The only that’s going to change, is her approach.
As for the economy, well, just a glance of the headlines tells the whole story. Like this gem from CNBC last week:
“U.S. consumer prices recorded their biggest decline in six years in December and underlying inflation pressures were benign,…The Labor Department said on Friday its Consumer Price Index fell 0.4 percent last month, the largest drop since December 2008, after sliding 0.3 percent in November. In the 12 months through December, CPI increased 0.8 percent…
Darkening prospects for the global economy could also complicate matters for the U.S. central bank.
Inflation is running below the Fed’s 2 percent target, despite a strengthening labor market and overall economy.” (Consumer Price Index drops 0.4% in December, in line with estimates, CNBC)
Think about that for a minute: Consumer prices just logged their biggest drop since the freaking slump of 2008 and, yet, the Fed is still babbling about raising rates.
Talk about lunacy. Not only has the Fed not reached its inflation target of 2%, but it’s abandoned the project altogether. Why? Why has the Fed suddenly stopped trying to boost inflation when the yields on benchmark 10-year US Treasuries have just plunged to record lows (1.70%) and are blinking red? In other words, the bond market is signaling slow growth and zero inflation for as far as the eye can see, but the Fed wants to raise rates and slash growth even more?? It doesn’t make any sense, unless of course, Yellen has something else up her sleeve. Which she does.
Now get a load of this shocker on retail sales in last week’s news. This is from Bloomberg:
“The optimism surrounding the outlook for U.S. consumers was taken down a notch as retail sales slumped in December by the most in almost a year, prompting some economists to lower spending and growth forecasts.
The 0.9 percent decline in purchases …. extended beyond any single group as receipts fell in nine of 13 major retail categories.
Treasury yields and stocks fell as a deepening commodities rout and the drop in sales spurred concern global growth is slowing…
…average hourly earnings falling 0.2 percent in December from the month before in the first drop since late 2012. That limits the amount of spending consumers can undertake without dipping into savings or racking up debt.” (U.S. Retail Sales Down Sharply, Likely Cuts to Growth Forecasts Ahead, Bloomberg)
Remember when everyone thought that low oil prices were going to save the economy? It hasn’t worked out that way though, has it? Nor will it. Falling oil prices usually indicate recession, crisis or deflation. Take your pick. They’re usually not a sign of green shoots, escape velocity, or sunny uplands.
And did you catch that part about falling wages? How do you expand a consumer-dependent economy, when workers are seeing their wages shrivel every month? In case, you haven’t seen the abysmal stagnation of wages in graph-form, here’s a chart from American Progress:
Negative real wage growth means the amount of slack in the market is still considerable.
So while stock prices have doubled or tripled in the last 6 years, wages have basically been flatlining. That’s a pretty crummy distribution system, don’t you think. Unless you’re in the 1 percent of course, then everything is just hunky dory.
But at least Yellen can find some comfort in the fact that unemployment continues to improve. In fact, just two weeks ago unemployment dropped to an impressive 5.4%, the lowest since 2007. So if we forget about the fact that wages are stagnating, that management has nabbed all the productivity-gains for the last 40 years, and that another 451,000 workers dropped off the radar altogether in December, then everything looks pretty rosy. But, of course, it’s all just a bunch of baloney. Take a look at this from Zero Hedge:
“Another month, another attempt by the BLS to mask the collapse in the US labor force with a seasonally-adjusted surge in waiter, bartender and other low-paying jobs. Case in point… the labor participation rate just slid once more, dropping to 62.7%, or the lowest print since December 1977. This happened because the number of Americans not in the labor forced soared by 451,000 in December, far outpacing the 111,000 jobs added according to the Household Survey, and is the primary reason why the number of uenmployed Americans dropped by 383,000.
So, yeah, unemployment looks great until you pick through the data and see it’s all a big fraud. Unemployment is only falling because more and more people are throwing in the towel and giving up entirely.
Finally, there’s the rapidly-expanding mess in the oil patch where the news on layoffs and cut backs gets worse by the day. This is from Wolf Richter at Naked Capitalism:
“Layoffs are cascading through the oil and gas sector. On Tuesday, the Dallas Fed projected that in Texas alone, 140,000 jobs could be eliminated. Halliburton said that it was axing an undisclosed number of people in Houston. Suncor Energy, Canada’s largest oil producer, will dump 1,000 workers in its tar-sands projects. Helmerich & Payne is idling rigs and cutting jobs. Smaller companies are slashing projects and jobs at an even faster pace. And now Slumberger, the world’s biggest oilfield-services company, will cut 9,000 jobs.” (Money dries up for oil and gas, layoffs spread, write-offs start, Wolf Richter, Naked Capitalism)
And then there’s this tidbit from Pam Martens at Wall Street on Parade:
“In a December 15 article by Patrick Jenkins in the Financial Times, readers learned that data from Barclays indicated that “energy bonds now make up nearly 16 per cent of the $1.3 trillion junk bond market — more than three times their proportion 10 years ago,” and “Nearly 45 per cent of this year’s non-investment grade syndicated loans have been in oil and gas.” Raising further alarms, AllianceBernstein has released research suggesting that the deals were not fully subscribed by investors with the potential that “as much as half of the outstanding financing from the past couple of years may be stuck on banks’ books.” (The perfect storm for Wall Street banks, Russ and Pam Martens, Wall Street on Parade)
How do you like that? So nearly half the toxic energy-related gunk that was bundled up into dodgy junk bonds (and is likely to default in the near future) is sitting on bank balance sheets. Does that sound like a potential trigger for another financial crisis or what?
And, no, I am not trying to ignore the fact that third quarter GDP came in at a whopping 5 percent which vastly exceeded all the analysts estimates. But let’s put that into perspective. According to economist Dean Baker, the growth spurt was mainly “an anomaly” …”driven by extraordinary jump in military spending and a big fall in the size of the trade deficit that is unlikely to be repeated.” Here’s more from Baker:
“As usual, just about everything we’ve heard about the economy is wrong. To start, the 5.0 percent growth number must be understood against a darker backdrop: The economy actually shrank at a 2.1 percent annual rate in the first quarter. If we take the first three quarters of the year together, the average growth rate was a more modest 2.5 percent.” (Don’t Believe What You Hear About the US Economy, Dean Baker, CEPR)
So, the economy is growing at a crummy 2.5 percent, but Yellen wants to raise rates. Why? Does she want to shave that number to 2 percent or 1.5 percent? Is that it? She wants to go backwards?
Of course not. The real reason the Fed wants to raise rates, is to attract foreign capital to US markets in order to keep stocks soaring, keep borrowing costs low, and reinforce the dollar’s role as the world’s reserve currency. That’s what’s really going on. The petrodollars are drying up, so US markets need a new source of funding. Direct foreign investment, that’s the ticket, Ducky. All the Fed needs to do is boost rates by, let’s say, 0.5 percent and “Cha-ching”, here comes the capital. Works like a charm every time, just ask former Treasury Secretary Robert Rubin whose strong dollar policy sent stock prices into orbit while widening the nation’s current account deficit by many orders of magnitude. (We never said the plan didn’t have its downside.)
The Fed’s sinister plan to raise interest rates (sometime by mid-2015) will push the dollar’s exchange rate higher thus triggering capital flight in the emerging markets which are already struggling with plunging commodities prices and an excruciating slowdown. The investment flows from the EMs to US financial assets and Treasuries will offset the loss of petrodollar revenue while expanding Wall Street’s ginormous stock market bubble. As for the emerging markets, well, they’re going to take it in the shorts bigtime as one would expect. Here’s a clip from an article by Ambrose-Evans Pritchard that lays it out in black and white:
“The US Federal Reserve has pulled the trigger. Emerging markets must now brace for their ordeal by fire. They have collectively borrowed $5.7 trillion in US dollars, a currency they cannot print and do not control. This hard-currency debt has tripled in a decade, split between $3.1 trillion in bank loans and $2.6 trillion in bonds. It is comparable in scale and ratio-terms to any of the biggest cross-border lending sprees of the past two centuries…
Officials from the Bank for International Settlements say privately that developing countries may be just as vulnerable to a dollar shock as they were in the Fed tightening cycle of the late 1990s, which culminated in Russia’s default and the East Asia Crisis. The difference this time is that emerging markets have grown to be half the world economy. Their aggregate debt levels have reached a record 175pc of GDP, up 30 percentage points since 2009…”
This time the threat does not come from insolvent states. They have learned the lesson of the late 1990s. Few have dollar debts. But their companies and banks most certainly do, some 70pc of GDP in Russia, for example. This amounts to much the same thing in macro-economic terms. ” (Fed calls time on $5.7 trillion of emerging market dollar debt, Ambrose-Evans Pritchard, Telegraph)
The Fed has been through this drill so many times before they could do it in their sleep. (” U.S. interest-rate hikes in 1980s and 1990s played a role in financial crises across Latin America and East Asia.” Foreign Policy Magazine) They’ve learned how to profit off every crisis, particularly the one’s that they themselves create, which is just about all of them. In this case, most of the loans to foreign businesses and banks were denominated in dollars. So, now that the dollar is soaring, (“The dollar’s value has risen about 15 percent relative to the euro and the yen just since the summer.” NPR) the debts are going to balloon accordingly (in real terms) which is going to push a lot of businesses off a cliff forcing sovereigns to step in and provide emergency bailouts.
Did someone say “looming financial crisis”?
Indeed. Bernanke’s “easy money” has inflated bubbles across the planet. Now these bubbles are about to burst due to the strong dollar and anticipated higher rates. At the same time, the policy-switch will send hundreds of billions of foreign capital flooding into US markets pushing stocks and bonds through the roof while generating mega-profits for JPM, G-Sax and the rest of the Wall Street gang. All according to plan.
Naturally, the stronger dollar will weigh heavily on employment and exports as foreign imports become cheaper and more attractive to US consumers. That will reduce hiring at home. Also the current account deficit will widen significantly, meaning that the US will again be consuming much more than it produces. (This took place under Rubin, too.) But here’s what’s interesting about that: According to the Bureau of Economic Analysis: “Our current account deficit has narrowed sharply since the crisis…The U.S. current account deficit now stands at 2.5 percent of GDP, down from more than 6 percent in the fourth quarter of 2005.” (BEA)
Great. In other words, Obama’s obsessive fiscal belt-tightening lowered the deficits enough so that Wall Street can “party on” for the foreseeable future, ignoring the gigantic bubbles they’re inflating or the emerging market economies that are about to be decimated in this latest dollar swindle.
If that doesn’t make you mad, I don’t know what will.
Is Putin Creating A New World Order?
“If undercharging for energy products occurs deliberately, it also effects those who introduce these limitations. Problems will arise and grow, worsening the situation not only for Russia but also for our partners.” – Russian President Vladimir Putin
It’s hard to know which country is going to suffer the most from falling oil prices. Up to now, of course, Russia, Iran and Venezuela have taken the biggest hit, but that will probably change as time goes on. What the Obama administration should be worried about is the second-order effects that will eventually show up in terms of higher unemployment, market volatility, and wobbly bank balance sheets. That’s where the real damage is going to crop up because that’s where red ink and bad loans can metastasize into a full-blown financial crisis. Check out this blurb from Nick Cunningham at Oilprice.com and you’ll see what I mean:
“According to an assessment from the Federal Reserve Bank of Dallas, an estimated 250,000 jobs across eight U.S. states could be lost in 2015 if oil prices don’t rise. More than 50 percent of those job losses would occur in Texas, which leads the nation in oil production.
There are some early signs that a slowdown in drilling could spread to the manufacturing sector in Texas… One executive at a metal manufacturing company said in the survey, “the drop in crude oil prices is going to make things ugly… quickly.” Another company that manufactures machinery told the Dallas Fed, “Low oil prices will drive reductions in U.S. drilling rigs, which will in turn reduce the market for our products.”
The sentiment was similar for a chemical manufacturer, who said “lower oil prices will adversely impact margins. Energy volatility will cause our customers to keep inventories tight.”
States like Texas, North Dakota, Oklahoma, and Louisiana have seen their economies boom over the last few years as oil production surged. But the sector is now deflating, leaving gashes in employment rolls and state budgets.” (Low Prices Lead To Layoffs In The Oil Patch, Nick Cunningham, Oilprice.com)
Of course industries lay-off workers all the time and it doesn’t always lead to a financial crisis. But unemployment is just one part of the picture, lower personal consumption is another. Take a look:
“Falling oil prices are a bigger drag on economic growth than the incremental “savings” received by the consumer…..Another way to show this graphically is to look at the annual changes in Personal Consumption Expenditures (PCE) in aggregate as compared to the subsection of PCE spent on energy and related products. This is shown in the chart below.
Lower Energy Prices To Lower PCE (Personal Consumption Expenditures):
(The Gasoline Price Myth, Lance Roberts, oilprice.com)
See? So despite what you might have read in the MSM, lower gas prices do not translate into greater personal consumption or more robust growth. Quiet the contrary, they tend to intensify deflationary pressures and reduce activity which is a damper on growth.
Then there’s the knock-on effects that crashing prices and layoffs have on other industries like mining, manufacturing and chemical production. Here’s more from Oil Price:
“Oil and gas production makeup a hefty chunk of the “mining and manufacturing” component of the employment rolls. Since 2000, when the oil price boom gained traction, Texas has comprised more than 40% of all jobs in the country according to first quarter data from the Dallas Federal Reserve…
The majority of the jobs “created” since the financial crisis have been lower wage paying jobs in retail, healthcare and other service sectors of the economy. Conversely, the jobs created within the energy space are some of the highest wage paying opportunities available in engineering, technology, accounting, legal, etc. In fact, each job created in energy related areas has had a “ripple effect” of creating 2.8 jobs elsewhere in the economy from piping to coatings, trucking and transportation, restaurants and retail….
The obvious ramification of the plunge in oil prices is that eventually the loss of revenue will lead to cuts in production, declines in capital expenditure plans (which comprise almost 1/4th of all capex expenditures in the S&P 500), freezes and/or reductions in employment, and declines in revenue and profitability…
Simply put, lower oil and gasoline prices may have a bigger detraction on the economy than the “savings” provided to consumers.” (The Gasoline Price Myth, Lance Roberts, oilprice.com)
None of this sounds very reassuring, does it? And yet, all we hear from the media is how the economy is going to reach “escape velocity” on the back of cheap oil. Nonsense. This is just more “green shoots” baloney wrapped in public relations hype. The fact is, the economy needs the good-paying jobs more than it needs low-priced energy. But now that prices are tumbling, those jobs are going to disappear which is going to be a drag on growth. Now check out these headlines I picked up on Google News that help to show what’s going on off the radar:
“Texas is in danger of a recession”, CNN Money.
“Texas Could Be Headed for an Oil-Fueled Recession, JP Morgan Economist Says”, Wall Street Journal “Good Times From Texas to North Dakota May Turn Bad on Oil-Price Drop”, Bloomberg
“Low Oil Prices in the New Year Are Screwing Petrostates”, Vice News
“Top US Oil States Are Taking A Hit From Plunging Crude Prices”, Business Insider
Get the picture? If oil prices continue to fall, unemployment is going to spike, activity is going to slow, and the economy is going tank. And the damage won’t be limited to the US either. Get a load of this from the UK Telegraph:
“A third of Britain’s listed oil and gas companies are in danger of running out of working capital and even going bankrupt amid a slump in the value of crude, according to new research.
Financial risk management group Company Watch believes that 70pc of the UK’s publicly listed oil exploration and production companies are now unprofitable, racking up significant losses in the region of £1.8bn.
Such is the extent of the financial pressure now bearing down on highly leveraged drillers in the UK that Company Watch estimates that a third of the 126 quoted oil and gas companies on AIM and the London Stock Exchange are generating no revenues.
The findings are the latest warning to hit the oil and gas industry since a slump in the price of crude accelerated in November when the Organisation of Petroleum Exporting Countries (Opec) decided to keep its output levels unchanged. The decision has caused carnage in oil markets with a barrel of Brent crude falling 45pc since June to around $60 per barrel.” (Third of listed UK oil and gas drillers face bankruptcy, Telegraph)
“Carnage in oil markets,” you say?
Indeed. Many of the oil-drilling newcomers set up shop to take advantage of the low rates and easy money available in the bond market. Now that prices have crashed, investors are avoiding energy-related junk bonds like the plague which is making it impossible for the smaller companies to roll over their debt or attract fresh capital. When these companies start to default en masse, as they certainly will if prices don’t rebound, the blowback will be felt on bank balance sheets across the country creating the possibility of another financial meltdown. (Now we ARE talking about a financial crisis.)
The basic problem is that the banks have bundled a lot of their dodgy debt into financially-engineered products like Collateralized Loan Obligations (CLOs) and Collateralized Debt Obligations (CDOs) that will inevitably fail when borrowers are no longer able to service the loans. The rot can be concealed for a while, but eventually, if prices don’t recover, a significant number of these companies are going to go under which will push the perennially-undercapitalized banking system to the brink once again. That’s why Washington’s plan to push down oil prices (to hurt the Russian economy) might have made sense on a short-term basis (to shock Putin into submission) but as a long-term strategy, it’s nuts. And what’s even crazier, is that Obama has decided to double-down on the same wacky plan even though Putin hasn’t given an inch. Check this out from Reuters on Monday:
“The Obama administration has opened a new front in the global battle for oil market share, effectively clearing the way for the shipment of as much as a million barrels per day of ultra-light U.S. crude to the rest of the world…
The Department of Commerce on Tuesday ended a year-long silence on a contentious, four-decade ban on oil exports, saying it had begun approving a backlog of requests to sell processed light oil abroad.
The action comes at a critical juncture for the global oil market. World prices have halved to less than $60 a barrel since the summer as top exporter Saudi Arabia, once a staunch defender of $100 oil, refused to cut production in the face of surging U.S. shale output and tempered global demand…
With global oil markets in flux, it is far from clear how much U.S. condensate will find a market overseas.”
(Analysis – U.S. opening of oil export tap widens battle for global market, Reuters)
Does that make sense to you, dear reader? Why would Obama suddenly opt to change the rules of the game when he knows it will increase supply and push prices down even further? Why would he do that? Certainly, he doesn’t want to inflict more pain on domestic producers, does he?
Let’s let Obama answer the question for himself. Here’s a clip from an NPR interview with the president just last week. About halfway through the interview, NPR’s Steve Inskeep asks Obama: “Are you just lucky that the price of oil went down and therefore their currency collapsed or …is it something that you did?
Barack Obama: If you’ll recall, their (Russia) economy was already contracting and capital was fleeing even before oil collapsed. And part of our rationale in this process was that the only thing keeping that economy afloat was the price of oil. And if, in fact, we were steady in applying sanction pressure, which we have been, that over time it would make the economy of Russia sufficiently vulnerable that if and when there were disruptions with respect to the price of oil — which, inevitably, there are going to be sometime, if not this year then next year or the year after — that they’d have enormous difficulty managing it.” (Transcript: President Obama’s Full NPR Interview)
Am I mistaken or did Obama just admit that he wanted “disruptions” in the “price of oil” because he figured Putin would have “enormous difficulty managing it”?
Isn’t that the same as saying that it was all part of Washington’s plan; that plunging prices were just the icing on the cake for their asymmetrical attack on the Russian economy? It sure sounds like it. And that would also explain why Obama decided to allow domestic producers to dump more oil on the market even though it’s going to send prices lower. Apparently, none of that matters as long as the policy hurts Russia.
So maybe the US-Saudi oil collusion theory isn’t so far fetched after all. Maybe Salon’s Patrick L. Smith was right when he said:
“Less than a week after the Minsk Protocol was signed, Kerry made a little-noted trip to Jeddah to see King Abdullah at his summer residence. When it was reported at all, this was put across as part of Kerry’s campaign to secure Arab support in the fight against the Islamic State.
Stop right there. That is not all there was to the visit, my trustworthy sources tell me. The other half of the visit had to do with Washington’s unabated desire to ruin the Russian economy. To do this, Kerry told the Saudis 1) to raise production and 2) to cut its crude price. Keep in mind these pertinent numbers: The Saudis produce a barrel of oil for less than $30 as break-even in the national budget; the Russians need $105.
Shortly after Kerry’s visit, the Saudis began increasing production, sure enough — by more than 100,000 barrels daily during the rest of September, more apparently to come…
Think about this. Winter is coming, there are serious production outages now in Iraq, Nigeria, Venezuela and Libya, other OPEC members are screaming for relief, and the Saudis make back-to-back moves certain to push falling prices still lower? You do the math, with Kerry’s unreported itinerary in mind, and to help you along I offer this from an extremely well-positioned source in the commodities markets: “There are very big hands pushing oil into global supply now,” this source wrote in an e-mail note the other day.” (“What Really Happened in Beijing: Putin, Obama, Xi And The Back Story The Media Won’t Tell You”, Patrick L. Smith, Salon)
Vladimir Putin: Public Enemy Number 1
Let’s cut to the chase: All these oil shenanigans are really aimed at just one man: Vladimir Putin. There are a number of reasons why Washington wants to get rid of Putin, the first of which is that the Russian president has become an obstacle to US plans to pivot to Asia. That’s the main issue. As long as Putin is calling the shots, there’s going to be growing resistance to NATO’s push eastward and Washington’s military expansion across Central Asia which could undermine US plans to encircle China and remain the world’s only superpower. Here’s an excerpt from Zbigniew Brzezinski’s The Grand Chessboard which helps to explain the importance Eurasia is in terms of Washington’s global ambitions:
“..how America ‘manages’ Eurasia is critical. A power that dominates Eurasia would control two of the world’s three most advanced and economically productive regions. A mere glance at the map also suggests that control over Eurasia would almost automatically entail Africa’s subordination, rendering the Western Hemisphere and Oceania (Australia) geopolitically peripheral to the world’s central continent. About 75 per cent of the world’s people live in Eurasia, and most of the world’s physical wealth is there as well, both in its enterprises and underneath its soil. Eurasia accounts for about three-fourths of the world’s known energy resources.” (p.31) (Zbigniew Brzezinski, The Grand Chessboard: American Primacy And It’s Geostrategic Imperatives, Key Quotes From Zbigniew Brzezinksi’s Seminal Book)
Get it? Prevailing in Asia is the administration’s top priority, which is why the US is rapidly moving its military assets into place. Check this out from the World Socialist Web Site:
“Under Obama’s “pivot to Asia,” the Pacific Command will account for more than 60 percent of all US military forces, up from 50 percent under the Bush administration. This includes new US basing arrangements in the Philippines, Singapore and Australia, as well as renewed close military ties to New Zealand, and ongoing US military exercises in Thailand, Malaysia, Indonesia and Taiwan….(as well as) large troop deployments in Japan and South Korea, including nuclear-armed units.” (The global scale of US militarism, Patrick Martin, World Socialist Web Site)
The “Big Shift” is already underway, which is why obstacles have to be removed and Putin’s got to go.
Second, Putin has made himself a general nuisance vis a vis US strategic objectives in Syria, Iran and Ukraine. In Syria, Putin has thrown his support behind Assad who the US wants to topple in order to redraw the map of the Middle East and build gas pipelines from Qatar to Turkey to access the lucrative EU market.
Third, Putin has strengthened a number of coalitions and alliances –the BRICS bank, the Eurasian Economic Union, and the Shanghai Cooperation Organization–all of which pose a challenge to US dominance in the region as well as a viable alternative to neoliberal financial institutions like the IMF and World Bank. Going back to Brzezinski’s “chessboard” once again, we see that the US should not feel threatened by any one nation, but should be constantly on-the-lookout for “regional coalitions” which could derail its plans to rule the world. Here’s Brzezinski again:
“…the three grand imperatives of imperial geostrategy are to prevent collusion and maintain security dependence among the vassals, to keep tributaries pliant and protected, and to keep the barbarians from coming together.” (p.40)
“Henceforth, the United States may have to determine how to cope with regional coalitions that seek to push America out of Eurasia, thereby threatening America’s status as a global power.” (p.55) (Zbigniew Brzezinski, The Grand Chessboard: American Primacy And It’s Geostrategic Imperatives, Key Quotes From Zbigniew Brzezinksi’s Seminal Book)
As a founding member and primary backer of these organizations, (and initiator of giant energy deals with China, India and Turkey) Putin has become Washington’s biggest headache and a logical target for regime change.
Finally, Putin is doing whatever he can to circumvent dollar-denominated business and financial transactions. The move away from the buck is a direct attack on the US’s greatest source of power, the ability to control the de facto international currency and to require that other nation’s stockpile dollars for their energy purchases which are then recycled into US financial assets, stocks bonds and US Treasuries. This petrodollar-recycling scam allows the US to run gigantic current account deficits without raising interest rates or reducing government spending. Putin’s anti-dollar policies could diminish the greenback’s role as reserve currency and put an end to a system that institutionalizes looting.
This is why Putin is Public Enemy Number 1. It’s because he’s blocking the US pivot to Asia, strengthening anti-Washington coalitions, sabotaging US foreign policy objectives in the Middle East, creating institutions that rival the IMF and World Bank, transacting massive energy deals with critical US allies, increasing membership in an integrated, single-market Eurasian Economic Union, and attacking the structural foundation upon which the entire US empire rests, the dollar.
Naturally, Washington’s powerbrokers are worried about these developments, just as they are worried about the new world order which is gradually taking shape under Putin’s guidance. But, so far, they haven’t been able to do anything about it. The administration’s regime change schemers and fantasists have shown time-and-again that they’re no match for Bad Vlad who has beaten them at every turn.
Did the U.S. and the Saudis Conspire to Push Down Oil Prices?
“Saudi oil policy… has been subject to a great deal of wild and inaccurate conjecture in recent weeks. We do not seek to politicize oil… For us it’s a question of supply and demand, it’s purely business.” – Ali al Naimi, Saudi Oil Minister
“There is no conspiracy, there is no targeting of anyone. This is a market and it goes up and down.” – Suhail Bin Mohammed al-Mazroui, United Arab Emirates’ petroleum minister
“We all see the lowering of oil prices. There’s lots of talk about what’s causing it. Could it be an agreement between the U.S. and Saudi Arabia to punish Iran and affect the economies of Russia and Venezuela? It could.” – Russian President Vladimir Putin
Are falling oil prices part of a US-Saudi plan to inflict economic damage on Russia, Iran and Venezuela?
Venezuelan President Nicolas Maduro seems to think so. In a recent interview that appeared in Reuters, Maduro said he thought the United States and Saudi Arabia wanted to drive down oil prices “to harm Russia.”
Bolivian President Evo Morales agrees with Maduro and told journalists at RT that: “The reduction in oil prices was provoked by the US as an attack on the economies of Venezuela and Russia. In the face of such economic and political attacks, the nations must be united.”
Iranian President Hassan Rouhani said the same thing,with a slightly different twist: “The main reason for (the oil price plunge) is a political conspiracy by certain countries against the interests of the region and the Islamic world … Iran and people of the region will not forget such … treachery against the interests of the Muslim world.”
US-Saudi “treachery”? Is that what’s really driving down oil prices?
Not according to Saudi Arabia’s Petroleum Minister Ali al-Naimi. Al-Naimi has repeatedly denied claims that the kingdom is involved in a conspiracy. He says the tumbling prices are the result of “A lack of cooperation by non-OPEC production nations, along with the spread of misinformation and speculator’s greed.” In other words, everyone else is to blame except the country that has historically kept prices high by controlling output. That’s a bit of a stretch, don’t you think? Especially since–according to the Financial Times — OPEC’s de facto leader has abandoned the cartel’s “traditional strategy” and announced that it won’t cut production even if prices drop to $20 per barrel.
Why? Why would the Saudis suddenly abandon a strategy that allowed them to rake in twice as much dough as they are today? Don’t they like money anymore?
And why would al-Naimi be so eager to crash prices, send Middle East stock markets into freefall, increase the kingdom’s budget deficits to a record-high 5 percent of GDP, and create widespread financial instability? Is grabbing “market share” really that important or is there something else going on here below the surface?
The Guardian’s Larry Elliot thinks the US and Saudi Arabia are engaged a conspiracy to push down oil prices. He points to a September meeting between John Kerry and Saudi King Abdullah where a deal was made to boost production in order to hurt Iran and Russia. Here’s a clip from the article titled “Stakes are high as US plays the oil card against Iran and Russia”:
“…with the help of its Saudi ally, Washington is trying to drive down the oil price by ﬂooding an already weak market with crude. As the Russians and the Iranians are heavily dependent on oil exports, the assumption is that they will become easier to deal with…
John Kerry, the US secretary of state, allegedly struck a deal with King Abdullah in September under which the Saudis would sell crude at below the prevailing market price. That would help explain why the price has been falling at a time when, given the turmoil in Iraq and Syria caused by Islamic State, it would normally have been rising.
The Saudis did something similar in the mid-1980s. Then, the geopolitical motivation for a move that sent the oil price to below $10 a barrel was to destabilize Saddam Hussein’s regime. This time, according to Middle East specialists, the Saudis want to put pressure on Iran and to force Moscow to weaken its support for the Assad regime in Syria… (Stakes are high as US plays the oil card against Iran and Russia, Guardian)
That’s the gist of Elliot’s theory, but is he right?
Vladimir Putin isn’t so sure. Unlike Morales, Maduro and Rouhani, the Russian president has been reluctant to blame falling prices on US-Saudi collusion. In an article in Itar-Tass, Putin opined:
“There’s a lot of talk around” in what concerns the causes for the slide of oil prices, he said at a major annual news conference. “Some people say there is conspiracy between Saudi Arabia and the US in order to punish Iran or to depress the Russian economy or to exert impact on Venezuela.”
“It might be really so or might be different, or there might be the struggle of traditional producers of crude oil and shale oil,” Putin said. “Given the current situation on the market the production of shale oil and gas has practically reached the level of zero operating costs.” (Putin says oil market price conspiracy between Saudi Arabia and US not ruled out, Itar-Tass)
As always, Putin takes the most moderate position, that is, that Washington and the Saudis may be in cahoots, but that droopy prices might simply be a sign of over-supply and weakening demand. In other words, there could be a plot, but then again, maybe not. Putin is a man who avoids passing judgment without sufficient evidence.
The same can’t be said of the Washington Post. In a recent article, WP journalist Chris Mooney dismisses anyone who thinks oil prices are the result of US-Saudi collaboration as “kooky conspiracy theorists”. According to Mooney:
“The reasons for the sudden (price) swing are not particularly glamorous: They involve factors like supply and demand, oil companies having invested heavily in exploration several years ago to produce a glut of oil that has now hit the market — and then, perhaps, the “lack of cohesion” among the diverse members of OPEC.” (Why there are so many kooky conspiracy theories about oil, Washington Post)
Oddly enough, Mooney disproves his own theory a few paragraphs later in the same piece when he says:
“Oil producers really do coordinate. And then, there’s OPEC, which is widely referred to in the press as a “cartel,” and which states up front that its mission is to “coordinate and unify the petroleum policies” of its 12 member countries…. Again, there’s that veneer of plausibility to the idea of some grand oil related strategy.” (WP)
Let me get this straight: One the one hand Mooney agrees that OPEC is a cartel that “coordinates and unify the petroleum policies”, then on the other, he says that market fundamentals are at work. Can you see the disconnect? Cartels obstruct normal supply-demand dynamics by fixing prices, which Mooney seems to breezily ignore.
Also, he scoffs at the idea of “some grand oil related strategy” as if these cartel nations were philanthropic organizations operating in the service of humanity. Right. Someone needs to clue Mooney in on the fact that OPEC is not the Peace Corps. They are monopolizing amalgam of cutthroat extortionists whose only interest is maximizing profits while increasing their own political power. Surely, we can all agree on that fact.
What’s really wrong with Mooney’s article, is that he misses the point entirely. The debate is NOT between so-called “conspiracy theorists” and those who think market forces alone explain the falling prices. It’s between the people who think that the Saudis decision to flood the market is driven by politics rather than a desire to grab “market share.” That’s where people disagree. No denies that there’s manipulation; they merely disagree about the motive. This glaring fact seems to escape Mooney who is on a mission to discredit conspiracy theorists at all cost. Here’s more:
(There’s) “a long tradition of conspiracy theorists who have surmised that the world’s great oil powers — whether countries or mega-corporations — are secretly pulling strings to shape world events.”…
“A lot of conspiracy theories take as their premise that there’s a small group of people who are plotting to control something, to control the government, the banking system, or the main energy source, and they are doing this to the disadvantage of everybody else,” says University of California-Davis historian Kathy Olmsted, author of “Real Enemies: Conspiracy Theories and American Democracy, World War I to 9/11″. (Washington Post)
Got that? Now find me one person who doesn’t think the world is run by a small group of rich, powerful people who operate in their own best interests? Here’s more from the same article:
(Oil) “It’s the perfect lever for shifting world events. If you were a mad secret society with world-dominating aspirations and lots of power, how would you tweak the world to create cascading outcomes that could topple governments and enrich some at the expense of others? It’s hard to see a better lever than the price of oil, given its integral role in the world economy.” (WP)
“A mad secret society”? Has Mooney noticed that — in the last decade and a half — the US has only invaded nations that have huge natural resources (mainly oil and natural gas) or the geography for critical pipeline routes? There’s nothing particularly secret about it, is there?
The United States is not a “mad secret society with world-dominating aspirations”. It’s a empire with blatantly obvious “world-dominating aspirations” run by political puppets who do the work of wealthy elites and corporations. Any sentient being who’s bright enough to browse the daily headlines can figure that one out.
Mooney’s grand finale:
“So in sum, with a surprising and dramatic event like this year’s oil price decline, it would be shocking if it did not generate conspiracy theories. Humans believe them all too easily. And they’re a lot more colorful than a more technical (and accurate) story about supply and demand.” (WP)
Ah, yes. Now I see. Those darn “humans”. They’re so weak-minded they’ll believe anything you tell them, which is why they need someone as smart as Mooney tell them how the world really works.
Have you ever read such nonsense in your life? On top of that, he gets the whole story wrong. This isn’t about market fundamentals. It’s about manipulation. Are the Saudis manipulating supply to grab market share or for political reasons? THAT’S THE QUESTION. The fact that they ARE manipulating supply is not challenged by anyone including the uber-conservative Financial Times that deliberately pointed out that the Saudis had abandoned their traditional role of cutting supply to support prices. That’s what a “swing state” does; it manipulates supply keep prices higher than they would be if market forces were allowed to operate unimpeded.
So what is the motive driving the policy; that’s what we want to know?
Certainly there’s a strong case to be made for market share. No one denies that. If the Saudis keep prices at rock bottom for a prolonged period of time, then a high percentage of the producers (that can’t survive at prices below $70 per barrel) will default leaving OPEC with greater market share and more control over pricing.
So market share is certainly a factor. But is it the only factor?
Is it so far fetched to think that the United States–which in the last year has imposed harsh economic sanctions on Russia, made every effort to sabotage the South Stream pipeline, and toppled the government in Kiev so it could control the flow of Russian gas to countries in the EU–would coerce the Saudis into flooding the market with oil in order to decimate the Russian economy, savage the ruble, and create favorable conditions for regime change in Moscow? Is that so hard to believe?
Apparently New York Times columnist Thomas Freidman doesn’t think so. Here’s how he summed it up in a piece last month: “Is it just my imagination or is there a global oil war underway pitting the United States and Saudi Arabia on one side against Russia and Iran on the other?”
It sounds like Freidman has joined the conspiracy throng, doesn’t it? And he’s not alone either. This is from Alex Lantier at the World Socialist Web Site:
“While there are a host of global economic factors underlying the fall in oil prices, it is unquestionable that a major role in the commodity’s staggering plunge is Washington’s collaboration with OPEC and the Saudi monarchs in Riyadh to boost production and increase the glut on world oil markets.
As Obama traveled to Saudi Arabia after the outbreak of the Ukraine crisis last March, the Guardian wrote, “Angered by the Soviet invasion of Afghanistan in 1979, the Saudis turned on the oil taps, driving down the global price of crude until it reached $20 a barrel (in today’s prices) in the mid-1980s… [Today] the Saudis might be up for such a move—which would also boost global growth—in order to punish Putin over his support for the Assad regime in Syria. Has Washington floated this idea with Riyadh? It would be a surprise if it hasn’t.” (Alex Lantier,Imperialism and the ruble crisis, World Socialist Web Site)
And here’s an intriguing clip from an article at Reuters that suggests the Obama administration is behind the present Saudi policy:
“U.S. Secretary of State John Kerry sidestepped the issue (of a US-Saudi plot) after a trip to Saudi Arabia in September. Asked if past discussions with Riyadh had touched on Russia’s need for oil above $100 to balance its budget, he smiled and said: “They (Saudis) are very, very well aware of their ability to have an impact on global oil prices.” (Saudi oil policy uncertainty unleashes the conspiracy theorists, Reuters)
Of course, they’re in bed together. Saudi Arabia is a US client. It’s not autonomous or sovereign in any meaningful way. It’s a US protectorate, a satellite, a colony. They do what they’re told. Period. True, the relationship is complex, but let’s not be ridiculous. The Saudis are not calling the shots. The idea is absurd. Do you really think that Washington would let Riyadh fiddle prices in a way that destroyed critical US domestic energy industries, ravaged the junk bond market, and generated widespread financial instability without uttering a peep of protest on the matter?
Dream on! If the US was unhappy with the Saudis, we’d all know about it in short-order because it would be raining Daisy Cutters from the Persian Gulf to the Red Sea, which is the way that Washington normally expresses its displeasure on such matters. The fact that Obama has not even alluded to the shocking plunge in prices just proves that the policy coincides with Washington’s broader geopolitical strategy.
And let’s not forget that the Saudis have used oil as a political weapon before, many times before. Indeed, wreaking havoc is nothing new for our good buddies the Saudis. Check this out from Oil Price website:
“In 1973, Egyptian President Anwar Sadat convinced Saudi King Faisal to cut production and raise prices, then to go as far as embargoing oil exports, all with the goal of punishing the United States for supporting Israel against the Arab states. It worked. The “oil price shock” quadrupled prices.
It happened again in 1986, when Saudi Arabia-led OPEC allowed prices to drop precipitously, and then in 1990, when the Saudis sent prices plummeting as a way of taking out Russia, which was seen as a threat to their oil supremacy. In 1998, they succeeded. When the oil price was halved from $25 to $12, Russia defaulted on its debt.
The Saudis and other OPEC members have, of course, used the oil price for the obverse effect, that is, suppressing production to keep prices artificially high and member states swimming in “petrodollars”. In 2008, oil peaked at $147 a barrel.” (Did The Saudis And The US Collude In Dropping Oil Prices?, Oil Price)
1973, 1986, 1990, 1998 and 2008.
So, according to the author, the Saudis have manipulated oil prices at least five times in the past to achieve their foreign policy objectives. But, if that’s the case, then why does the media ridicule people who think the Saudis might be engaged in a similar strategy today?
Could it be that the media is trying to shape public opinion on the issue and, by doing so, actually contribute to the plunge in oil prices?
Bingo. Alert readers have probably noticed that the oil story has been splashed across the headlines for weeks even though the basic facts have not changed in the least. It’s all a rehash of the same tedious story reprinted over and over again. But, why? Why does the public need to have the same “Saudis refuse to cut production” story driven into their consciousness day after day like they’re part of some great collective brainwashing experiment? Could it be that every time the message is repeated, oil sells off, and prices go down? Is that it?
Precisely. For example, last week a refinery was attacked in Libya which pushed oil prices up almost immediately. Just hours later, however, another “Saudis refuse to cut production” story conveniently popped up in all the major US media which pushed prices in the direction the USG wants them to go, er, I mean, back down again.
This is how the media helps to reinforce government policy, by crafting a message that helps to push down prices and, thus, hurt “evil” Putin. (This is called “jawboning”) Keep in mind, that OPEC doesn’t meet again until June, 2015, so there’s nothing new to report on production levels. But that doesn’t mean we’re not going to get regular updates on the “Saudis refuse to cut production” story. Oh, no. The media is going to keep beating that drum until Putin cries “Uncle” and submits to US directives. Either that, or the bond market is going to blow up and take the whole damn global financial system along with it. One way or another, something’s got to give.
Bottom line: Falling oil prices and the plunging ruble are not some kind of free market accident brought on by oversupply and weak demand. That’s baloney. They’re part of a broader geopolitical strategy to strangle the Russian economy, topple Putin, and establish US hegemony across the Asian landmass. It’s all part of Washington’s plan to maintain its top-spot as the world’s only superpower even though its economy is in irreversible decline.
US-Saudi Subterfuge Send Stocks and Credit Reeling…
U.S. powerbrokers have put the country at risk of another financial crisis to intensify their economic war on Moscow and to move ahead with their plan to “pivot to Asia”.
Here’s what’s happening: Washington has persuaded the Saudis to flood the market with oil to push down prices, decimate Russia’s economy, and reduce Moscow’s resistance to further NATO encirclement and the spreading of US military bases across Central Asia. The US-Saudi scheme has slashed oil prices by nearly a half since they hit their peak in June. The sharp decline in prices has burst the bubble in high-yield debt which has increased the turbulence in the credit markets while pushing global equities into a tailspin. Even so, the roiled markets and spreading contagion have not deterred Washington from pursuing its reckless plan, a plan which uses Riyadh’s stooge-regime to prosecute Washington’s global resource war. Here’s a brief summary from an article by F. William Engdahl titled “The Secret Stupid Saudi-US Deal on Syria”:
“The details are emerging of a new secret and quite stupid Saudi-US deal on Syria and the so-called IS. It involves oil and gas control of the entire region and the weakening of Russia and Iran by Saudi Arabian flooding the world market with cheap oil. Details were concluded in the September meeting by US Secretary of State John Kerry and the Saudi King…
..the kingdom of Saudi Arabia, has been flooding the market with deep discounted oil, triggering a price war within OPEC… The Saudis are targeting sales to Asia for the discounts and in particular, its major Asian customer, China where it is reportedly offering its crude for a mere $50 to $60 a barrel rather than the earlier price of around $100. That Saudi financial discounting operation in turn is by all appearance being coordinated with a US Treasury financial warfare operation, via its Office of Terrorism and Financial Intelligence, in cooperation with a handful of inside players on Wall Street who control oil derivatives trading. The result is a market panic that is gaining momentum daily. China is quite happy to buy the cheap oil, but her close allies, Russia and Iran, are being hit severely…
According to Rashid Abanmy, President of the Riyadh-based Saudi Arabia Oil Policies and Strategic Expectations Center, the dramatic price collapse is being deliberately caused by the Saudis, OPEC’s largest producer. The public reason claimed is to gain new markets in a global market of weakening oil demand. The real reason, according to Abanmy, is to put pressure on Iran on her nuclear program, and on Russia to end her support for Bashar al-Assad in Syria….More than 50% of Russian state revenue comes from its export sales of oil and gas. The US-Saudi oil price manipulation is aimed at destabilizing several strong opponents of US globalist policies. Targets include Iran and Syria, both allies of Russia in opposing a US sole Superpower. The principal target, however, is Putin’s Russia, the single greatest threat today to that Superpower hegemony. (The Secret Stupid Saudi-US Deal on Syria, F. William Engdahl, BFP)
The US must achieve its objectives in Central Asia or forfeit its top-spot as the world’s only superpower. This is why US policymakers have embarked on such a risky venture. There’s simply no other way to sustain the status quo which allows the US to impose its own coercive dollar system on the world, a system in which the US exchanges paper currency produced-at-will by the Central Bank for valuable raw materials, manufactured products and hard labor. Washington is prepared to defend this extortionist petrodollar recycling system to the end, even if it means nuclear war.
How Flooding the Market Adds to Instability
The destructive and destabilizing knock-on effects of this lunatic plan are visible everywhere. Plummeting oil prices are making it harder for energy companies to get the funding they need to roll over their debt or maintain current operations. Companies borrow based on the size of their reserves, but when prices tumble by nearly 50 percent–as they have in the last six months– the value of those reserves falls sharply which cuts off access to the market leaving CEO’s with the dismal prospect of either selling assets at firesale prices or facing default. If the problem could be contained within the sector, there’d be no reason for concern. But what worries Wall Street is that a surge in energy company failures could ripple through the financial system and wallop the banks. Despite six years of zero rates and monetary easing, the nation’s biggest banks are still perilously undercapitalized, which means that a wave of unexpected bankruptcies could be all it takes to collapse the weaker institutions and tip the system back into crisis. Here’s an excerpt from a post at Automatic Earth titled “Will Oil Kill the Zombies?”:
“If prices fall any further, it would seem that most of the entire shale edifice must of necessity crumble to the ground. And that will cause an absolute earthquake in the financial world, because someone supplied the loans the whole thing leans on. An enormous amount of investors have been chasing high yield, including many institutional investors, and they’re about to get burned something bad….. if oil keeps going the way it has lately, the Fed may instead have to think about bailing out the big Wall Street banks once again.” (Will Oil Kill the Zombies?, Raúl Ilargi Meijer, Automatic Earth)
The problem with falling oil prices is not just mounting deflation or droopy profits; it’s the fact that every part of the industry–exploration, development and production — is propped atop a mountain of red ink (junk bonds). When that debt can no longer be serviced or increased, then the primary lenders (counterparties and financial institutions) sustain heavy losses which domino through the entire system. Take a look at this from Marketwatch:
“There’s ‘no question’ that for energy companies with a riskier debt profile the high-yield debt market “is essentially shut down at this stage,” and there are signs that further pain could hit the sector, ” senior fixed-income strategist at U.S. Bank Wealth Management, Dan Heckman told Marketwatch. “We are getting to the point that it is becoming very concerning.” (Marketwatch)
When energy companies lose access to the market and are unable to borrow at low rates, it’s only a matter of time before they trundle off to extinction.
On Friday, the International Energy Agency (IEA) renewed pressure on prices by lowering its estimate for global demand for oil in 2015. The announcement immediately sent stocks into a nosedive. The Dow Jones Industrial Average (DJIA) lost 315 points by the end of the day, while, according to Bloomberg, more than “$1 trillion was erased from the value of global equities in the week”.
The world is awash in cheap petroleum which is wreaking havoc on domestic shale producers that need prices of roughly $70 per barrel to break-even. With West Texas Intermediate (WTI) presently headed south of 60 bucks–and no bottom in sight–these smaller producers are sure to get clobbered. Pension funds, private equity, banks, and other investors who gambled on these dodgy energy-related junk bonds are going to get their heads handed to them in the months ahead.
The troubles in the oil patch are mainly attributable to the Fed’s easy money policies. By dropping rates to zero and flooding the markets with liquidity, the Fed made it possible for every Tom, Dick and Harry to borrow in the bond market regardless of the quality of the debt. No one figured that the bottom would drop out leaving an entire sector high and dry. Everyone thought the all-powerful Fed could print its way out of any mess. After last week’s bloodbath, however, they’re not nearly as confident. Here’s how Bloomberg sums it up:
“The danger of stimulus-induced bubbles is starting to play out in the market for energy-company debt….Since early 2010, energy producers have raised $550 billion of new bonds and loans as the Federal Reserve held borrowing costs near zero, according to Deutsche Bank AG. With oil prices plunging, investors are questioning the ability of some issuers to meet their debt obligations…
The Fed’s decision to keep benchmark interest rates at record lows for six years has encouraged investors to funnel cash into speculative-grade securities to generate returns, raising concern that risks were being overlooked. A report from Moody’s Investors Service this week found that investor protections in corporate debt are at an all-time low, while average yields on junk bonds were recently lower than what investment-grade companies were paying before the credit crisis.” (Fed Bubble Bursts in $550 Billion of Energy Debt: Credit Markets, Bloomberg)
The Fed’s role in this debacle couldn’t be clearer. Investors piled into these dodgy debt-instruments because they thought Bernanke had their back and would intervene at the first sign of trouble. Now that the bubble has burst and the losses are piling up, the Fed is nowhere to be seen.
In the last week, falling oil prices have started to impact the credit markets where investors are ditching debt on anything that looks at all shaky. The signs of contagion are already apparent and likely to get worse. Investors fear that if they don’t hit the “sell” button now, they won’t be able to find a buyer later. In other words, liquidity is drying up fast which is accelerating the rate of decline. Naturally, this has affected US Treasuries which are still seen as “risk free”. As investors increasingly load up on USTs, long-term yields have been pounded into the ground like a tentpeg. As of Friday, the benchmark 10-year Treasury checked in at a miniscule 2.08 percent, the kind of reading one would expect in the middle of a Depression.
The Saudi-led insurgency has reversed the direction of the market, put global stocks into a nosedive and triggered a panic in the credit markets. And while the financial system edges closer to a full-blown crisis every day, policymakers in Washington have remained resolutely silent on the issue, never uttering as much as a peep of protest for a Saudi policy that can only be described as a deliberate act of financial terrorism.
Why is that? Why have Obama and Co. kept their mouths shut while oil prices have plunged, domestic industries have been demolished, and stocks have gone off a cliff? Could it be that they’re actually in cahoots with the Saudis and that it’s all a big game designed to annihilate enemies of the glorious New World Order?
It certainly looks that way.
Shale Leads The Way…
Crude oil prices dipped lower on Wednesday pushing down yields on US Treasuries and sending stocks down sharply. The 30-year UST slipped to a Depression era 2.83 percent while all three major US indices plunged into the red. The Dow Jones Industrial Average (DJIA) led the retreat losing a hefty 268 points before the session ended. The proximate cause of Wednesday’s bloodbath was news that OPEC had reduced its estimate of how much oil it would need to produce in 2015 to meet weakening global demand. According to USA Today:
“OPEC lowered its projection for 2015 production to 28.9 million barrels a day, or about 300,000 fewer than previously forecast, and a 12-year low…. That’s about 1.15 million barrels a day less than the cartel pumped last month, when OPEC left unchanged its 30 million barrel daily production quota…
The steep decline in crude price raises fears that small exploration and production companies could go out of business if the prices fall too low. And that, in turn, could cause turmoil among those who are lending to them: Junk-bond purchasers and smaller banks.” (USA Today)
Lower oil prices do not necessarily boost consumption or strengthen growth. Quite the contrary. Weaker demand is a sign that deflationary pressures are building and stagnation is becoming more entrenched. Also, the 42 percent price-drop in benchmark U.S. crude since its peak in June, is pushing highly-leveraged energy companies closer to the brink. If these companies cannot roll over their debts, (due to the lower prices) then many will default which will negatively impact the broader market. Here’s a brief summary from analyst Wolf Richter:
“The price of oil has plunged …and junk bonds in the US energy sector are getting hammered, after a phenomenal boom that peaked this year. Energy companies sold $50 billion in junk bonds through October, 14% of all junk bonds issued! But junk-rated energy companies trying to raise new money to service old debt or to fund costly fracking or off-shore drilling operations are suddenly hitting resistance.
And the erstwhile booming leveraged loans, the ugly sisters of junk bonds, are causing the Fed to have conniptions. Even Fed Chair Yellen singled them out because they involve banks and represent risks to the financial system. Regulators are investigating them and are trying to curtail them through “macroprudential” means, such as cracking down on banks, rather than through monetary means, such as raising rates. And what the Fed has been worrying about is already happening in the energy sector: leveraged loans are getting mauled. And it’s just the beginning…
“If oil can stabilize, the scope for contagion is limited,” Edward Marrinan, macro credit strategist at RBS Securities, told Bloomberg. “But if we see a further fall in prices, there will have to be a reaction in the broader market as problems will spill out and more segments of the high-yield space will feel the pain.”…Unless a miracle happens that will goose the price of oil pronto, there will be defaults, and they will reverberate beyond the oil patch.” (Oil and Gas Bloodbath Spreads to Junk Bonds, Leveraged Loans. Defaults Next, Wolf Ricter, Wolf Street)
The Fed’s low rates and QE pushed down yields on corporate debt as investors gorged on junk thinking the Fed “had their back”. That made it easier for fly-by-night energy companies to borrow tons of money at historic low rates even though their business model might have been pretty shaky. Now that oil is cratering, investors are getting skittish which has pushed up rates making it harder for companies to refinance their debtload. That means a number of these companies going to go bust, which will create losses for the investors and pension funds that bought their debt in the form of financially-engineered products. The question is, is there enough of this financially-engineered gunk piled up on bank balance sheets to start the dominoes tumbling through the system like they did in 2008?
That question was partially answered on Wednesday following OPEC’s dismal forecast which roiled stocks and send yields on risk-free US Treasuries into a nosedive. Investors ditched their stocks in a mad dash for the exits thinking that the worst is yet to come. USTs provide a haven for nervous investors looking for a safe place to hunker down while the storm passes.
Economist Jack Rasmus has an excellent piece at Counterpunch which explains why investors are so jittery. Here’s a clip from his article titled “The Economic Consequences of Global Oil Deflation”:
“Oil deflation may lead to widespread bankruptcies and defaults for various non-financial companies, which will in turn precipitate financial instability events in banks tied to those companies. The collapse of financial assets associated with oil could also have a further ‘chain effect’ on other forms of financial assets, thus spreading the financial instability to other credit markets.” (The Economic Consequences of Global Oil Deflation, Jack Rasmus, CounterPunch)
Falling oil prices typically drag other commodities prices down with them. This, in turn, hurts emerging markets that depend heavily on the sale of raw materials. Already these fragile economies are showing signs of stress from rising inflation and capital flight. In a country like Japan, however, one might think the effect would be positive since the lower yen has made imported oil more expensive. But that’s not the case. Falling oil prices increase deflationary pressures forcing the Bank of Japan to implement more extreme measures to reverse the trend and try to stimulate growth. What new and destabilizing policy will Japan’s Central Bank employ in its effort to dig its way out of recession? And the same question can be asked of Europe too, which has already endured three bouts of recession in the last five years. Here’s Rasmus again on oil deflation and global financial instability:
“Oil is not only a physical commodity bought, sold and traded on global markets; it has also become an important financial asset since the USA and the world began liberalized trading of oil commodity futures…
Just as declines in oil spills over to declines of other physical commodities…price deflation can also ‘spill over’ to other financial assets, causing their decline as well, in a ‘chain like’ effect.
That chain like effect is not dissimilar to what happened with the housing crash in 2006-08. At that time the deep contraction in the global housing sector ( a physical asset) not only ‘spilled over’ to other sectors of the real economy, but to mortgage bonds…and derivatives based upon those bonds, also crashed. The effect was to ‘spill over’ to other forms of financial assets that set off a chain reaction of financial asset deflation.
The same ‘financial asset chain effect’ could arise if oil prices continued to decline below USD$60 a barrel. That would represent a nearly 50 percent deflation in oil prices that could potentially set in motion a more generalized global financial instability event, possibly associated with a collapse of the corporate junk bond market in the USA that has fueled much of USA shale production.” (CounterPunch)
This is precisely the scenario we think will unfold in the months ahead. What Rasmus is talking about is “contagion”, the lethal spill-over from one asset class to another due to deteriorating conditions in the financial markets and too much leverage. When debts can no longer be serviced, defaults follow sucking liquidity from the system which leads to a sudden (and excruciating) repricing event. Rasmus believes that a sharp cutback in Shale gas and oil production could ignite a crash in junk bonds that will pave the way for more bank closures. Here’s what he says:
“The shake out in Shale that is coming will not occur smoothly. It will mean widespread business defaults in the sector. And since much of the drilling has been financed with risky high yield corporate ‘junk’ bonds, the shale shake out could translate into a financial crash of the US corporate junk bond market, which is now very over-extended, leading to regional bank busts in turn.” (CP)
The financial markets are a big bubble just waiting to burst. If Shale doesn’t do the trick, then something else will. It’s just a matter of time.
Rasmus also believes that the current oil-glut is politically motivated. Washington’s powerbrokers persuaded the Saudis to flood the market with petroleum to push down prices and crush oil-dependent Moscow. The US wants a weak and divided Russia that will comply with US plans to increase its military bases in Central Asia and allow NATO to be deployed to its western borders. Here’s Rasmus again:
“Saudi Arabia and its neocon friends in the USA are targeting both Iran and Russia with their new policy of driving down the price of oil. The impact of oil deflation is already severely affecting the Russian and Iranian economies. In other words, this policy of promoting global oil price deflation finds favor with significant political interests in the USA, who want to generate a deeper disruption of Russian and Iranian economies for reasons of global political objectives. It will not be the first time that oil is used as a global political weapon, nor the last.” (CP)
Washington’s strategy is seriously risky. There’s a good chance the plan could backfire and send stocks into freefall wiping out trillions in a flash. Then all the Fed’s work would amount to nothing.
Karma’s a bitch.
Putin Gobsmacks Obama and Euro-Leaders with Surprise Gas Deal…
On Monday, Russian President Vladimir Putin clinched a groundbreaking deal with Turkish President Recep Tayyip Erdoğan that will strengthen economic ties between the two nations and make Turkey the major hub for Russian gas in the region. Under the terms of the agreement, Russia will pump additional natural gas to locations in central Turkey and to a “hub at the Turkish-Greek border” which will eventually provide Putin with backdoor access to the lucrative EU market, although Turkey will serve as the critical intermediary. The move creates a de facto Russo-Turkey alliance that could shift the regional balance of power decisively in Moscow’s favor, thus creating another formidable hurtle for Washington’s “pivot to Asia” strategy. While the media is characterizing the change in plans (Putin has abandoned the South Stream pipeline project that would have transported gas to southern Europe) as a “diplomatic defeat” for Russia, the opposite appears to be the case. Putin has once again outmaneuvered the US on both the energy and geopolitical fronts adding to his long list of policy triumphs. Here’s a brief summary from Andrew Korybko at Sputnik News:
“Russia has abandoned the troubled South Stream project and will now be building its replacement with Turkey. This monumental decision signals that Ankara has made its choice to reject Euro-Atlanticsm and embrace Eurasian integration.
In what may possibly be the biggest move towards multipolarity thus far,..Turkey, has done away with its former Euro-Atlantic ambitions. A year ago, none of this would have been foreseeable, but the absolute failure of the US’ Mideast policy and the EU’s energy one made this stunning reversal possible in under a year. Turkey is still anticipated to have some privileged relations with the West, but the entire nature of the relationship has forever changed as the country officially engages in pragmatic multipolarity.
Turkey’s leadership made a major move by sealing such a colossal deal with Russia in such a sensitive political environment, and the old friendship can never be restored…The reverberations are truly global.” (“Cold Turkey: Ankara Buckles Against Western Pressure, Turns to Russia”, Sputnik News)
Korybko seems to be alone in grasping the magnitude of what happened in Ankara on Monday, although –judging by the Obama administration’s silence on the topic–the gravity of the transaction is beginning to sink in. Grandmaster Vlad’s latest move has caught US powerbrokers flat-footed and left them speechless. This is a scenario that no one had anticipated and, if it’s not handled correctly, could turn out to be a real nightmare. Here’s more on Monday’s press conference from Russia Today:
“Putin said that Russia is ready to build a new pipeline to meet Turkey’s growing gas demand, which may include a special hub on the Turkish-Greek border for customers in southern Europe.
For now, the supply of Russian gas to Turkey will be raised by 3 billion cubic meters via the already operating Blue Stream pipeline…Moscow will also reduce the gas price for Turkish customers by 6 percent from January 1, 2015, Putin said.
“We are ready to further reduce gas prices along with the implementation of our joint large-scale projects,” he added.” (“Putin: Russia forced to withdraw from S. Stream project due to EU stance”, RT)
How can this happen? How can Putin waltz into Ankara, scribble his name on a few sheets of paper, and abscond with a key US ally right under Washington’s nose? Isn’t there anyone at the White House who’s smart enough to anticipate a scenario like this or have they all been replaced with warmongering ding-dongs like Susan Rice and Samantha Powers?
The Obama administration has been doing everything in its power to control the flow of gas from east to west and to undermine Russian-EU economic integration. Now it looks like the nimble Putin has found a way to avoid the economic sanctions, (Turkey rejected sanctions on Russia) avoid US coercion and blackmail (which was used on Bulgaria, Hungary, and Serbia), and avoid Washington’s endless belligerence and hostility, and achieve his objectives at the same time. But– then again– isn’t that what you’d expect from a level-headed martial arts pro like Putin?
“I won’t beat you,” says Bad Vlad. “I’ll let you to beat yourself.”
And, so he has. Just ask the befuddled Obama who has yet to prevail in any of his encounters with Putin.
But why the silence? Why hasn’t the White House issued a statement about the big Russian-Turkey gas deal that everyone’s talking about?
I’ll tell you why. It’s because they don’t know what the hell just hit them, that’s why. They were completely blindsided by the announcement and can’t quite figure out what it means for the issues that are on the very top of their foreign policy agenda, like the pivot to Asia, or the wars in Syria and Ukraine, or the much-ballyhooed gas pipeline from Qatar to the EU, that was supposed to transit– you guessed it– Turkey. Is that plan still in the works or has the Putin-Erdogan alliance put the kibosh on that gem too? Let’s face it, Putin has really knocked it out of the park this time. Team Obama is clearly out of its league and has no idea of what’s going on. If Turkey turns eastward and joins the growing Russian bloc, US policymakers are going to have to scrap the better part of their strategic plans for the coming century and go back to Square 1. What a headache.
There’s a good article in Wednesday’s New York Times that summarizes Washington’s ambivalence towards South Stream perfectly. Here’s an excerpt:
“Moscow has long presented the project, proposed in 2007, as making good business sense because it would provide a new route for Russian gas to reach Europe. Washington and Brussels have opposed the project on the grounds that it was a vehicle for cementing Russian influence over southern Europe and for bypassing Ukraine, whose price disputes with Gazprom twice interrupted supplies to Europe in recent years.”
Putin’s Surprise Call to Scrap South Stream Gas Pipeline Leaves Europe Reeling”, New York Times)
This has been the argument from the get-go, that selling gas to people in the EU somehow strengthens Putin’s maniacal grip on the continent. What a joke. Would you, dear reader, be willing turn off the heat, tear up your energy bill, and freeze to death in the dark to prove to your gas company that you’re not willing to capitulate to their tyrannical rule?
Of course not, because the idea is ridiculous. Just like blocking South Stream is ridiculous. Putin is selling gas, not tyranny. He doesn’t want people clicking their heels and goosestepping to work. That’s just propaganda from the people in the oil industry who lost the competition for supplying fuel to the EU. Call it sour grapes if you want, because that’s what it is. Their pipeline failed, (Nabucco) and Putin’s won. End of story. It’s called capitalism. Deal with it.
And here’s another thing: The countries that South Stream would have served, do not have a back-up supplier to meet their growing gas needs. So by following Washington’s lead, they’ve basically shot themselves in the foot. Analysts figure that any replacement for Russian gas will probably be 30 percent more expensive then they would have paid Gazprom.
Hurrah for the US! Hurrah for stupidity!
The US has been determined to sabotage South Stream from the very beginning, mainly because Washington wants its corporations and banks to control the flow of gas to the EU market through privately-owned pipelines in Ukraine. That way they can rake in bigger profits for their moneybags shareholders. Without going into too much detail about the various methods the US has used to torpedo the project, there’s one story that’s worth a look. This is from Zero Hedge:
“…two months before the Ukraine government was overthrown the prime minister of Bulgaria, Plamen Oresharski, ordered a halt to work on the South Stream on the recommendation of the EU. The decision was announced after his talks with US senators.
“At this time there is a request from the European Commission, after which we’ve suspended the current works, I ordered it,” Oresharski told journalists after meeting with John McCain, Chris Murphy and Ron Johnson during their visit to Bulgaria on Sunday. “Further proceedings will be decided after additional consultations with Brussels.”
At the time McCain, commenting on the situation, said that “Bulgaria should solve the South Stream problems in collaboration with European colleagues,” adding that in the current situation they would want “less Russian involvement” in the project.
“America has decided that it wants to put itself in a position where it excludes anybody it doesn’t like from countries where it thinks it might have an interest, and there is no economic rationality in this at all,” (said)Ben Aris, editor of Business New Europe told RT.” (“Europe Gives Bulgaria A Bank System Lifeline As Battle Over “South Stream” Pipeline Heats Up”, Zero Hedge)
Let me get this straight: Madman McCain strolls into town and immediately starts ordering people around telling them he wants “less Russian involvement”, and that’s enough to bring South Stream to a screeching halt? Is that what you’re telling me?
Yep. Sure sounds like it.
Does that help you see what’s really going here? This isn’t about Putin. It’s about gas, and who’s going to profit from that gas, and in whose currency that gas will be denominated. That’s what it’s about. The rest of the nonsense about “Russian involvement” or terrorism or human rights or national sovereignty is just gibberish. The people who run this country (like McCain), don’t care about that kind of stuff. What they care about is money; money and power. That’s it.
So what are they going to do now? How are the big powerboys in Washington going to express their rage over this new threat created by Putin and Erdogan?
It doesn’t take a genius to figure that one out, after all, we’ve seen it a million times before.
They’re going to go after Erdogan hammer and tongs. That’s what they always do, isn’t it?
The only reason they haven’t started in already is because they’re getting their propaganda ducks in a row, which usually takes a day or two. But as soon as that’s taken care of, they’ll start dismantling old Recep one excruciating headline at a time. Erdogan is going to be the new Hitler and the greatest threat to humanity the world has ever seen. You can bet on it.
Whistleblower Sibel Edmonds thinks that Washington has had-it-in for Erdogan a long time now, dating back to a dust up he had with the CIA a few years back. In any event, she gives a pretty good account of what we can expect now that Erdogan is on Washington’s enemies list. Here’s a clip from her post at Boiling Frogs:
“We all know what happens to those puppets when they end up in a rift with the CIA. Don’t we? The rift always brings expiration. Once a puppet is considered expired, then lo and behold, all of a sudden, the reversal branding and marketing begins: All old skeletons are dug out of the deep closets and leaked to the media. His previously overlooked human rights violations are looked at and scrutinized under a microscope. The terrorist card is brought into the equation. And the list goes on…
… All Empire-installed puppets and regimes must commit to the Empire’s commandments….Thou shall not violate the Imperial commandments. Because if you do, thou shall be disgraced, exposed, uninstalled, and may even be given death. All you have to do is look at the past century’s history. See what happens when an installed puppet gets too confident and inflicted with hubris, and ignores one or more commandments. This is when they are reborn as dictators, despots, torturers, and yes, terrorists. This is when their backyards get dug up to find a few grams of weapons of mass destruction.”…
No matter how we look at it Erdogan’s days are numbered … Anyone who ever dares to be this reckless will be punished and made an example for all other installed-puppets…” (“Turkish PM Erdogan: The Speedy Transformation of an Imperial Puppet”, BFP)
So there it is. That’s what you can expect by the end of the week when the media starts their full-throttle demonizing of Erdogan, the man who dared to act independently and put the interests of his own people above those of the Washington mob bosses. As anyone who’s followed US foreign policy for the last 60 years will tell you; that’s a big no-no.
Ukraine War Driven by Gas-Dollar Link…
“The Fed’s ‘need’ to take on an even more active role as foreigners further slow the purchases of our paper is to put the pedal to the metal on the currency debasement race now being run in the developed world — a race which is speeding us all toward the end of the present currency regime.” Stephanie Pomboy, MacroMavens
“No matter what our Western counterparts tell us, we can see what’s going on. NATO is blatantly building up its forces in Eastern Europe, including the Black Sea and the Baltic Sea areas. Its operational and combat training activities are gaining in scale.” Russian President Vladimir Putin
If there was a way the United States could achieve its long-term strategic objectives and, at the same time, avoid a war with Russia, it would do so. Unfortunately, that is not an option, which is why there’s going to be a clash between the two nuclear-armed adversaries sometime in the near future.
Let me explain: The Obama administration is trying to rebalance US policy in a way that shifts the focus of attention from the Middle East to Asia, which is expected to be the fastest growing region in the coming century. This policy-change is called the “pivot” to Asia. In order to benefit from Asia’s surge of growth, the US plans to beef up its presence on the continent, expand its military bases, strengthen bilateral alliances and trade agreements, and assume the role of regional security kingpin. The not-so-secret purpose of the policy is China “containment”, that is, Washington wants to preserve its position as the world’s only superpower by controlling China’s explosive growth. (The US wants a weak, divided China that will do what it’s told.)
In order to achieve its goals in Asia, the US needs to push NATO further eastward, tighten its encirclement of Russia, and control the flow of oil and gas from east to west. These are the necessary preconditions for establishing US hegemonic rule over the continent. And this is why the Obama administration is so invested in Kiev’s blundering junta-government; it’s because Washington needs Poroshenko’s neo Nazi shock troops to draw Russia into a conflagration in Ukraine that will drain its resources, discredit Putin in the eyes of his EU trading partners, and create the pretext for deploying NATO to Russia’s western border.
The idea that Obama’s proxy army in Ukraine is defending the country’s sovereignty is pure bunkum. What’s going on below the surface is the US is trying to stave off irreversible economic decline and an ever-shrinking share of global GDP through military force. What we’re seeing in Ukraine today, is a 21st century version of the Great Game implemented by political fantasists and Koolaid drinkers who think they can turn the clock back to the post WW2 heyday of the US Empire when the world was America’s oyster. Thankfully, that period is over.
Keep in mind, the glorious US military has spent the last 13 years fighting sheep herders in flip-flops in Afghanistan in a conflict that, at best, could be characterized as a stalemate. And now the White House wants to take on Russia?
Can you appreciate the insanity of the policy?
This is why Secretary of Defense Chuck Hagel was sacked last week, because he wasn’t sufficiently eager to pursue this madcap policy of escalating the wars in Afghanistan, Iraq, Syria and Ukraine. Everyone knows it’s true, the administration hasn’t even tried to deny it. They’d rather stick with foam-at-the-mouth buffoons, like Susan Rice and Samantha Powers, then a decorated veteran who has more credibility and intelligence in his little finger than Obama’s whole National Security team put together.
So now Obama is completely surrounded by rabid warmongering imbeciles, all of whom ascribe to the same fairytale that the US is going to dust-off Russia, remove Assad, redraw the map of the Middle East, control the flow of gas and oil from the ME to markets in the EU, and establish myriad beachheads across Asia where they can keep a tight grip on China’s growth.
Tell me, dear reader, doesn’t that strike you as a bit improbable?
But, of course, the Obama claque think it’s all within their grasp, because, well, because that’s what they’ve been told to think, and because that’s what the US has to do if it wants to maintain its exalted position as the world’s lone superpower when its economic significance in the world is steadily declining. You see, here’s the thing: The exceptional nation is becoming more unexceptional all the time, and that’s what has the political class worried, because they see the handwriting on the wall, and the writing says, “Enjoy it while it lasts, buddy, cuz you ain’t gonna be numero uno much longer.”
And the US has allies in this wacky crusade too, notably Israel and Saudi Arabia. The Saudis have been particularly helpful lately by flooding the market with oil to push down prices and crush the Russian economy. (On Friday, Benchmark crude oil prices plummeted to a four-year low, with Brent crude sinking to $69.11 a barrel.) The Obama administration is using the classic one-two punch of economic sanctions and plunging oil revenues to bully Moscow into withdrawing from Crimea so Washington can move its nuclear arsenal to within spitting distance of Moscow. Here’s a bit of background from the Guardian:
“Think about how the Obama administration sees the state of the world. It wants Tehran to come to heel over its nuclear programme. It wants Vladimir Putin to back off in eastern Ukraine. But after recent experiences in Iraq and Afghanistan, the White House has no desire to put American boots on the ground. Instead, with the help of its Saudi ally, Washington is trying to drive down the oil price by flooding an already weak market with crude. As the Russians and the Iranians are heavily dependent on oil exports, the assumption is that they will become easier to deal with.
John Kerry, the US secretary of state, allegedly struck a deal with King Abdullah in September under which the Saudis would sell crude at below the prevailing market price. That would help explain why the price has been falling at a time when, given the turmoil in Iraq and Syria caused by Islamic State, it would normally have been rising.” (Stakes are high as US plays the oil card against Iran and Russia, Larry Eliot, Guardian)
And here’s more from Salon’s Patrick L. Smith at Salon:
“Less than a week after the Minsk Protocol was signed, Kerry made a little-noted trip to Jeddah to see King Abdullah at his summer residence. When it was reported at all, this was put across as part of Kerry’s campaign to secure Arab support in the fight against the Islamic State.
Stop right there. That is not all there was to the visit, my trustworthy sources tell me. The other half of the visit had to do with Washington’s unabated desire to ruin the Russian economy. To do this, Kerry told the Saudis 1) to raise production and 2) to cut its crude price. Keep in mind these pertinent numbers: The Saudis produce a barrel of oil for less than $30 as break-even in the national budget; the Russians need $105.
Shortly after Kerry’s visit, the Saudis began increasing production, sure enough — by more than 100,000 barrels daily during the rest of September, more apparently to come…
Think about this. Winter is coming, there are serious production outages now in Iraq, Nigeria, Venezuela and Libya, other OPEC members are screaming for relief, and the Saudis make back-to-back moves certain to push falling prices still lower? You do the math, with Kerry’s unreported itinerary in mind, and to help you along I offer this from an extremely well-positioned source in the commodities markets: “There are very big hands pushing oil into global supply now,” this source wrote in an e-mail note the other day.” (What Really Happened in Beijing: Putin, Obama, Xi And The Back Story The Media Won’t Tell You, Patrick L. Smith, Salon)
The Obama team managed to persuade our good buddies the Saudis to flood the market with oil, drive down prices, and put the Russian economy into a nosedive. At the same time, the US has intensified its economic sanctions, done everything in its power to sabotage Gazprom’s South Stream pipeline (that would bypass Ukraine and deliver natural gas to Europe via a southern route), and cajole the Ukrainian parliament into auctioning off 49 percent of the leasing rights and underground storage facilities to privately-owned foreign corporations.
How do you like that? So the US has launched a full-blown economic war against Russia that’s been completely omitted in the western media. Are you surprised?
Washington is determined to block further Russo-EU economic integration in order to collapse the Russian economy and put foreign capital in control of regional energy distribution. It’s all about the pivot. The big money guys figure the US has to pivot to Asia to be a player in the next century. All of these unprovoked attacks on Moscow are based on that one lunatic strategy.
But aren’t people in the EU going to be angry when they can’t get the energy they need (at the prices they want) to run their businesses and heat their homes?
Washington doesn’t think so. Washington thinks its allies in the Middle East can meet the EU’s energy needs without any difficulty. Check out this clip from an article by analyst F. William Engdahl:
“…details are emerging of a new secret and quite stupid Saudi-US deal on Syria and the so-called IS. It involves oil and gas control of the entire region and the weakening of Russia and Iran by Saudi Arabian flooding the world market with cheap oil. ….
On September 11, US Secretary of State Kerry met Saudi King Abdullah at his palace on the Red Sea. The King invited former head of Saudi intelligence, Prince Bandar to attend. There a deal was hammered out which saw Saudi support for the Syrian airstrikes against ISIS on condition Washington backed the Saudis in toppling Assad, a firm ally of Russia and de facto of Iran and an obstacle to Saudi and UAE plans to control the emerging EU natural gas market and destroy Russia’s lucrative EU trade. A report in the Wall Street Journal noted there had been “months of behind-the-scenes work by the US and Arab leaders, who agreed on the need to cooperate against Islamic State, but not how or when.
The process gave the Saudis leverage to extract a fresh US commitment to beef up training for rebels fighting Mr. Assad, whose demise the Saudis still see as a top priority.”
(The Secret Stupid Saudi-US Deal on Syria, F. William Engdahl, BFP)
So the wars in Ukraine and Syria are not really separate conflicts at all. They’re both part of the same global resource war the US has been prosecuting for the last decade and a half. The US plans to cut off the flow of Russian gas and replace it with gas from Qatar which will flow through Syria and onto the EU market after Assad is toppled.
Here’s what’s going on: Syria’s troubles began shortly after it announced that it was going to be part of an “Islamic pipeline” that would transfer natural gas from the South Pars gas field off the coast of Iran across Iraq and Syria, eventually connecting to Greece and the lucrative EU market. According to author Dmitri Minin:
“A gas pipeline from Iran would be highly profitable for Syria. Europe would gain from it as well, but clearly someone in the West didn’t like it. The West’s gas-supplying allies in the Persian Gulf weren’t happy with it either, nor was would-be no. 1 gas transporter Turkey, as it would then be out of the game.” (The Geopolitics of Gas and the Syrian Crisis: Syrian “Opposition” Armed to Thwart Construction of Iran-Iraq-Syria Gas Pipeline, Dmitri Minin, Global Research)
Two months after Assad signed the deal with Iraq and Iran, the rebellion broke out in Syria. That’s quite a coincidence, don’t you think? Funny how frequently those kinds of things happen when foreign leaders don’t march to Washington’s tune.
Here’s more from Minin:
“Qatar is doing all it can to thwart the construction of the pipeline, including arming the opposition fighters in Syria, many of whom come from Saudi Arabia, Pakistan and Libya…
The Arabic newspaper Al-Akhbar cites information according to which there is a plan approved by the U.S. government to create a new pipeline for transporting gas from Qatar to Europe involving Turkey and Israel…
This new pipeline is to begin in Qatar, cross Saudi territory and then the territory of Jordan, thus bypassing Shiite Iraq, and reach Syria. Near Homs the pipeline is to branch in three directions: to Latakia, Tripoli in northern Lebanon, and Turkey. Homs, where there are also hydrocarbon reserves, is the project’s main crossroads, and it is not surprising… that the fiercest fighting is taking place. Here the fate of Syria is being decided. The parts of Syrian territory where detachments of rebels are operating with the support of the U.S., Qatar and Turkey, that is, the north, Homs and the environs of Damascus, coincide with the route that the pipeline is to follow to Turkey and Tripoli, Lebanon. A comparison of a map of armed hostilities and a map of the Qatar pipeline route indicates a link between armed activities and the desire to control these Syrian territories. Qatar’s allies are trying to accomplish three goals: to break Russia’s gas monopoly in Europe; to free Turkey from its dependence on Iranian gas; and to give Israel the chance to export its gas to Europe by land at less cost.”
How do you like that; another coincidence: “The fiercest fighting (in Syria) is taking place” where there’s massive “hydrocarbon reserves” and along the planned pipeline route.
So the conflict in Syria isn’t really about terrorism at all. It’s about natural gas, competing pipelines and access to markets in the EU. It’s about money and power. The whole ISIS-thing is a big hoax to conceal what’s really going on, which is a global war for resources, more blood for oil.
But how does the US benefit from all of this, after all, won’t the gas revenues go to Qatar and the transit countries rather than the US?
Yep, they sure will. But the gas will also be denominated in dollars which will shore up demand for USDs thus perpetuating the petrodollar recycling system which creates a vast market for US debt and which helps to keep US stocks and bonds in the nosebleed section. And that’s what this is all about, preserving dollar supremacy by forcing nations to hold excessive amounts of USDs to use in their energy transactions and to service their dollar-denominated debts.
As long as Washington can control the world’s energy supplies and force the world to trade in dollars, it can spend well in excess of what it produces and not be held to account. It’s like having a credit card you never have to pay off.
That’s a racket Uncle Sam is prepared to defend with everything he’s got, even nukes.
Anyone who follows the news regularly, knows that the media has done everything in its power to smear Vladimir Putin and to demonize him as a tyrant and a thug. Fortunately, most people aren’t buying it.
Yes, I’ve seen the polls that say that Putin and Russia are viewed “less favorably” than they were prior to the crisis in Ukraine. In fact, here’s a clip from a recent PEW survey which seems to prove that I’m wrong:
“Across the 44 countries surveyed, a median percentage of 43% have unfavorable opinions of Russia, compared with 34% who are positive.
Negative ratings of Russia have increased significantly since 2013 in 20 of the 36 countries surveyed…
Americans and Europeans in particular have soured on Russia over the past 12 months. More than six-in-ten in Poland, Germany, Italy, Spain, France, the U.S. and the UK have an unfavorable image of Russia. And in all but one of these countries negative reviews are up by double digits since last year, including by 29 percentage points in the U.S., 27 points in Poland, 24 points in the UK and 23 points in Spain.” (Russia’s Global Image Negative amid Crisis in Ukraine: Americans’ and Europeans’ Views Sour Dramatically, PEW Research)
These results strongly suggest that the public blames Moscow for the fighting in Ukraine and (presumably)agrees with the prevailing storyline that Putin is a vicious aggressor who seized Crimea in order to rebuild the Soviet Empire. The problem with the PEW survey is that the results are based random samples of nationwide face-to-face or telephone interviews.
Why is that a problem?
It’s a problem because the man-on-the-street hasn’t the foggiest idea of what’s going on in Ukraine. All he knows is what he’s heard on TV. So, naturally, when he’s asked to offer his opinion on the matter, he’s going to regurgitate some variation of the official version, which is that Putin is responsible.
But try asking someone who’s actually been following events in Ukraine that same question, and you’re going to get an entirely different answer. Among the people who follow the daily developments in Ukraine, roughly two out of three support the Russian position. This isn’t something you’re going to find in the survey data, but if you take the time to comb the comments lines in the international media, you’ll see what I’m saying is true.
I hadn’t figured this out until last week’s G-20 Summit in Brisbane when Canada’s PM Stephen Harper brusquely greeted Putin saying, “I guess I’ll shake your hand, but I only have one thing to say to you: you need to get out of Ukraine.”
The incident immediately became headline news around the world as journalists for all the major media heaped praise on Harper for courageously “shirt-fronting” the dastardly Putin. What was left out in the media’s account of the exchange, was Putin’s crisp retort, which was, “Unfortunately it is impossible, (for us to leave Ukraine) because we are not there.”
Touché. As you might expect, Putin’s response did not fit with the media’s narrative, so it was scrubbed from the coverage altogether.
The Harper incident was a particularly big deal in Canada where all the newspapers ran gushing articles lauding the prime minister for his righteousness and fortitude. Oddly enough, however, only a small percentage of the people who commented on the dust-up, saw Harper as the hero. Here’s a few samples of what ordinary people had to say. This is from BobsOpinion:
“Harper embarrasses Canadians again on the international stage. It will take years for Canadians to re-build our international relationships and to re-build our reputation.”
This comment is from redondex:
“Harper made a childish and baseless remark to Putin and walked off with a grin of a proud five year old spoilt kid. All Harper achieved was to ridicule himself in front of the rest of the world. That is our leaders usual behavior.”
This is from Makman1:
“I was under the impression that a proper democracy would first use negotiating as a way to understand the divergent groups involved in the Ukrainian revolution and then apply a political solution, if possible. The present Ukrainian government immediately used force. PERIOD! The Harper government, instead of using its “influence” to attempt to defuse a complex situation blindly followed the actions of the USA. If Harper really cared at all he would ask his foreign minister to get directly involved with Russian and Ukrainian counterparts and help reach a compromise…. Hopefully, Harper is not supporting Ukrainian right wing fascists?”
This is from Jörð:
“It’s not wise for Harper to follow America’s lead on every foreign policy. The USA government has a terrible track record when it comes to getting things right in foreign lands. Also Putin was correct when he responded to Harper’s comment by saying “It’s impossible, we are not there.” Technically Russia is not “In” the Ukraine.”
This is Time4Change:
“This is another example of Harper BLUSTERING backed with NO SUBSTANCE! Why are there NO SANCTIONS on the Russian Energy Giants Rosneft and Rostec? Could it be the hundreds of billions of $s the Russians have invested in the tar sands have caused Harper to be the SOFTEST on ACTIONS while shouting the loudest.”
And this is from Mt Athabaska:
” …one day Harper will reach puberty on global affairs.”
It’s worth noting that these comments were lifted from article that was published by the Canadian Broadcasting Corporation. I was shocked at how harshly Harper was criticized by his own countrymen. I was also surprised that the author’s obvious anti-Putin bias had virtually no impact on the opinions of the people who commented on the incident. In fact, it appeared to make many of them mad.
I should also mention that I omitted all of the comments that lambasted Harper for hiding in a broom closet “while a gun battle ensued in a nearby hallway of the Parliament building in Ottawa” in early October. (See here: Needless to say, Harper’s comical performance at the G-20 hasn’t convinced anyone that he’s the courageous leader he imagines himself to be.)
The media is increasingly worried that it’s losing its ability to persuade people to support policies that only serve the interests of elites. The media has rolled out all the heavy artillery in its campaign to demonize Putin, but the strategy hasn’t worked. In fact, it’s backfired quite badly leading some publications to cancel their comments section altogether.
And the response from readers has been huge too, mainly because the standoff between two nuclear-armed adversaries has galvanized the publics’ attention. For example, in the CBC article I cited above, more than 2,500 comments have been posted already, while many of the other articles on Ukraine or Putin have exceeded 6,000 comments. This just shows how closely people are following events and how passionate they feel about the policy.
And, as we said earlier, this isn’t just a Canadian phenom either. For example, here are a few of the comments I picked up from an article in the conservative UK Telegraph in an article titled Global economy to suffer as Putin quits G20 early.
“The US supports the neo-Nazi ethnic cleansing campaign in east Ukraine, Russia supports the Russian speaking Ukrainian majority in the east against it. Pretty simple really, and the US enforced sanctions can only harm EU Russian relations, a win-win all round for the neoconservative hawks.”
“So, the media tells us in the Title that Putin is to blame when the Global economy suffers, because he left the G20 early. What stupidity. And what a statement in bringing warships as their targeted President attends yet another meeting. Good for Putin. Blame the US-backed coup and looting and 4000 deaths on Putin, and blame the Ukrainian plane that shot down a passenger flight on him, too. Then shun him at a world meeting, as if he doesn’t have the right and responsibility to defend his country’s borders, Naval base, pipeline and brothers in the Ukraine as they are shelled and killed by US manipulation.
Instead of shock and awe and intruding where they didn’t belong like the US in all the Mid-Eastern countries according to long-ago made plans, Putin sends humanitarian aid and the people vote in Donetsk and Luhansk.
Putin-not all Americans are stupid sheep. My apologies for the onslaught of ignorance and imperialism. You are standing up to bullies of the worst kind. The world needs peaceful solutions to restore the harm of NWO fanaticism and corrupt bankers. Hold the line.”
MP Jones: “The US never ended the cold war and the ‘useful idiots’ in this context are us in Europe and the UK.”
“Most British people are deeply unconvinced by the flood of US and EU propaganda over Ukraine, trying to cast Russia as the villain – when the civil war there was caused directly by the US and their EU side kicks backing a coup to overthrow the elected government of a sovereign country, Ukraine.”
“With due respect to the author, you say that his (Putin’s) popularity will rise at home as a consequence of this. Please read the message boards North American and European, you will find his popularity seems to have increased everywhere.
Guess the Brains behind 5 eyes and snooping will now have to move into the new reality of the power of the internet to provide information which they would not like others to get. Just a question of time before they make their next move – Censorship!”
“If, the ‘Seven Dwarfs’ (US, UK, EU, Japan, Australia, Canada, and South Africa) like bullies, weren’t so obsessed with beating Russia or China into a corner, rather than bringing Russia or China into their corner; the world would be a better place. Co-operation works better than devastation.”
John Derbyshire :
“Why all this Anti Russian propaganda. The fools who run the West keep creating bogeymen Bin Laden, ISIS, oddly both had connections to Western Powers. So as we face an economic down in the world economy we need another bogeyman, and up pops Putin in the Capitalist controlled media!
People seem to have short memories of pre Putin era, when Yeltsin backed by the West led the country to economic meltdown. Maybe he has scant regard for democratic institutions, but do Western governments support the views of the people!
All of this came about when the United States pushed Nato’s borders eastward and involved themselves in the Ukraine, particularly Mr Kerry. Russia felt itself threatened not by demands of democracy a device used by the worlds superpower, but the growing influence of the United States in the region. The fact that the USA exploited ethnic tensions only shows what was their intention in the region.”
“If the objective is to make Mr Putin appear isolated on the world stage in order to make him less popular at home, it isn’t working and also shows a profound misunderstanding of the Russian mind-set. ‘
Our Western political leaders also have a profound misunderstanding of strategy. Just about everything they do in relation to Russia is wrong and gains the West nothing. But they do like willy waving. Just a pity they do so much damage while they are at it.”
RedBaron9495: “With the public, the effect is rebounding and probably starting to gain Putin more support and worldwide sympathy. This British news forum is good example of that. They made the mistake of going into overkill…..and the public are wising up to the propaganda. They seen this all before prior to Iraq 2003 invasion…and again with Gaddafi.”
Circle of DNA :
“Well, the lives of average folks in Russia has been drastically improved since Putin took the reins of power. He defends Russian interests, fights the empire of chaos, and is massively supported by his people. He is also well educated and a first class statesmen. What is there not to like about him?”
Alltaxationistheft: “The Russian people appreciate how lucky they’ve been for Vladimir Putin to be around at the right time to resist the Neocon supremacist Wolfowitz doctrine…
Since the 1990s , the war mongering maniacs in the West have been planning to asset strip, and plunder Russia via ”liberal democracy”, claiming its natural resources while funding serial inter-ethnic tribal wars via US allies Qatar and Saudi Arabia…
In the 1990s, Russian people were driven into starvation ,prostitution and suicide under pro American ”Liberal” US corporate puppet Yeltsin… but Putin kicked the CIA EU Mossad lunatics out and has been re-building a Russia into a world power ever since.”
“The classless western free (loading) world that produces very little except paper currency, lies and bullshit. I am surprised Mr. Putin came and surrounded himself with such low life scum.
When all the western oligarchs hate someone as much as they hate President Putin, you know he has to be doing something right.”
There’s no need to be selective. Curious readers should go to any editorial platform that covers the crisis in Ukraine and judge for themselves if what I’m saying is true or not. The comments above are in no way extraordinary. What they do show, however, is that the media is losing the propaganda war in pretty stunning fashion, and that’s a huge victory for ordinary people. It’s very difficult for elites to prosecute their criminal wars or implement their rip-off economic policies when people can clearly see what they’re up to.
Now check out this article in the German paper Zeit Online where the author bemoans the media’s loss of influence. The article is titled “How Putin Divides”:
“Why do so many German citizens judge the crisis in Crimea in a completely different way than politicians and the media?
In my 30 years of experience with debates, I have never seen anything like what is now happening in Germany in the dispute over Russia and Crimea….
Unless surveys are misleading, two-thirds of German citizens, voters and readers stand opposed to four-fifths of the political class – in other words, to the government, to the overwhelming majority of members of parliament and to most newspapers and broadcasters. But what does “stand” mean? Many are downright up in arms. And from what one can gauge from letters to the editor, the share of critics seems significantly higher now than what was triggered by Sarrazin’s inflammatory book back then.” (Zeit Online)
Did you catch that part about the “two-thirds of German citizens.. stand opposed to four-fifths of the political class…and to most newspapers and broadcasters”?
That’s a triumph in itself, isn’t it? And what is the issue they disagree about?
They disagree “about the conflict between an aggressive autocrat (Bad Vlad) and Western democracies.”(the Washington-led troublemakers)
Here’s more from the same article:
“…the legitimacy of international law is being questioned in an offensive manner, while the legitimacy of Putin’s nationalist-imperialist ideology is being seriously considered….. It doesn’t do any good to accuse the majority of sheepishness or base economic selfishness, even if that seems to be the driving motive of some business leaders… The issue goes deeper, much deeper.” (How Putin Divides, Von Bernd Ulrich, Zeit Online)
“The legitimacy of international law is being questioned”?!?
Have you ever read such crybaby gibberish in your life?
Why is “the legitimacy of international law is being questioned”? Because people don’t accept blindly what they read the papers and hear on the news anymore? Because corporate editors no longer control how people think about issues? Because people are using their critical thinking skills to see through the lies and bullshit that idiots like the author ladle out in heaping doses every day? Is that why?
It seems to me that that’s a positive development, that people should question whatever they read in the papers and look for other sources of information before they form an opinion.
The bottom line is that no one believes the goofy propaganda the western media is trying to ram down the everyone’s throat anymore.
As kyle555 at Zero Hedge says: “India, China, Brazil and a host of other countries, representing more than half the world’s population, aren’t buying the western imperialist narrative on Ukraine. Nor are major segments of the domestic populations of the countries that are warmongering against Russia.”
Nor do they believe that US wars are a force for good in the world. Here’s strannick at Zero Hedge:
“Russia has seen firsthand the American dream for other nations, as American backed Oligarchs pillaged Russia while it’s people starved and were impoverished. Putin loves his country, and won’t sit on his thumbs while America attempts to encircle it through proxies while rationalizing its actions through corrupt MSMedia propaganda.”
Nor are they buying the “Putin is Hitler” crappola.
This is from smacker:
“People see in Putin a proud national leader who has the guts to stand up to our own criminals and who has over 80% support from his own population. That is enough to admire the guy, whatever else he might be.”
This is from Gaius frakkin':
“A lot of the hatred from the political puppets in the West is due to Putin’s popularity. They’re jealous sociopaths who yearn to be respected and admired as much as him. The fact that Putin’s popularity is never mentioned is the key tell.”
And this from Joe Tierney:
“Vladdy-Poot is hammering home the point that the euros need to stop being America’s bitches, think for themselves, consider the terrible “costs” accruing to them for “wearing the blue dress” for America.
…America’s “global chaos ploy” is failing. Its cynical, “throw everyone under the bus” strategy just to cut across the rise of Russia-China is exposed for what it is – America cares nothing about the euros or anyone else. All it cares about is its own global dominance in perpetuity, no matter the “costs” to the rest of the world, including its friends and allies.
Putin has balls the size of the moon, and you can damn well bet that right now Russia and Putin are secretly being cheered on a grand scale around the globe.”
There’s a reason why, according to Gallup, Trust in Media (is at an) All-Time Low. It’s because the corporate media is the most perfidious, double-dealing, hypocritical institution in the country today. That’s why the anti-Putin propaganda has fallen on deaf ears. It’s because most people know you can’t believe anything you read in the news.
Throughout the de-Christianized West and America neo-pagan and mystical pantheist evolutionary reasoning is taken for granted throughout the college curriculum, just as it is in all aspects of modern thought and experience. It not only undergirds biological and earth sciences, but also Freudian and Jungian psychology, anthropology, law, sociology, politics, economics, the media, arts, medicine, and all other academic—and increasingly seminarian—disciplines as well. The West’s amoral transnational elite Gnostics, the “chosen” ones, are particularly enamored of evolutionary reasoning:
“Western cultural elites have disregarded God for more than two centuries, but for a while the effects were mostly confined to their own circles. At first, they disregarded God. Then they deliberately desecrated Western tradition and lived in ways that would have spelled disaster if they had been followed more closely. But now in the early twenty-first century, their movement from disregard to desecration to decadence is going mainstream, and the United States is only the lead society among those close to the tipping point…. Soon, as the legalization and then normalization of polyamory, polygamy, pedophilia and incest follow the same logic as that of abortion and homosexuality, the socially destructive consequences of these trends will reverberate throughout society until social chaos is beyond recovery. We can only pray there will be a return to God and sanity before the terrible sentence is pronounced: “God has given them over” to the consequences of their own settled choices.” (Renaissance: The Power of the Gospel However Dark the Times, Os Guinness, p. 20)
Evolution: what is it?
“Evolution has always been a fundamentally spiritual concept. In fact, some of the first thinkers to seriously explore the topic—the German Idealists of the early 19th century—were mystic philosophers who predated Darwin’s Origin of Species by at least a century.” (A Brief History of Evolutionary Spirituality, Tom Huston)
Rene Guenon (1886-1951) concurs. Guenon was a French metaphysician, writer, and editor who was largely responsible for laying the metaphysical groundwork for the Traditionalist or Perennialist school of thought in the early twentieth century. In his brilliant critical analysis of Theosophy and Spiritism entitled, “The Spiritist Fallacy” Guenon investigates and exposes the satanic esotericism working through various modern Western secret societies to pervert true religion—orthodox Christianity in particular— in order to ultimately turn the world over to Luciferian forces.
Guenon reveals that in early Theosophist and spiritist circles use of the word ‘progress’ or ‘progressivist’ preceded the use of the word ‘evolution.’ The roots of Theosophy, hence of evolution–the universal life force–stretch back to the ancient Upanishads of India in the East and in the West to ancient Babylon, Egypt and Greece. In its modern version, progress, transformism, and/or evolution describes the progress (transmigration) of soul made possible by the life force as it inhabits in succession the bodies of different kinds of beings over the course of thousands or even millions and billions of years.
Eventually the word evolution became preferred, especially by empirical realists and materialists like Karl Marx because it had a more ‘scientific’ allure:
“This kind of ‘verbalism’…provides the illusion of thought for those incapable of really thinking…” (ibid, p. 231)
Evolution is an ancient occult doctrine originating in ancient Babylonian Cabbala, Egyptian Hermetic magic and Mystery Religion traditions both East and West from the time of Babylon—the mother of all Mystery Religions—that entered Christendom during the Renaissance. In “God and the Knowledge of Reality,” the Catholic philosopher and historian, Thomas Molnar (1921–2010), reveals that certain Christian theologians, mystics and scholars such as Emanuel Swedenborg had discovered Hermetic magic and occult Jewish Cabbala texts which they studied and translated resulting in Hermetic Cabbala. Then like Pico della Mirandola, they argued that Hermetic Cabbala— the divine occult science or Magic Way of reaching divine status and powers through initiation, evolution (progress), and ritual procedures is the best proof of the divinity of Christ. In other words said Molnar,
“…..by the time of the Renaissance the esoteric texts of the first centuries A.D. had acquired in scholarly and humanist circles an unparalleled prestige, confronting as equals the texts held sacred by the church. In Pico’s estimation, ‘nulla est scientia que nos magis certificet de divinitate Christ quam magia et Cabala’ (there is no science that would prove for us Christ’s divinity better than magic and the Cabala.)” (pp. 78-79)
That Hermetic magic and Babylonian Cabbala are ancient Mystery Religion traditions undergirded by evolution is affirmed by G. H. Pember in his classic work, “Earth’s Earliest Ages.” In his impeccably researched book Pember thoroughly examines the role of fallen angels in connection with the occult science they taught to pre-flood generations and compares them to the explosion of spiritism (open intercourse with evil spirits), astrology, the Mysteries and other occult traditions sweeping over Christendom.
Pember writes that the Mysteries are no longer veiled in mystery but boldly presented by the powerful occult progressive brotherhood that emerged out of the Renaissance as the fruit of modern science, especially evolutionary philosophy, which the brotherhood assert was included in the instructions given,
“…to the initiates of the Hermetic, Orphic, Eleusinian, and Cabbalistic mysteries, and were familiar to Chaldean Magi, Egyptian Priests, Hindu Occultists, Essenes, Therapeutae Gnostics, and Theurgic Neo-Platonists.” (Pember, pp.243-244)
Today, evolutionary dynamics and science as the instrument of the will of sovereign man has so thoroughly replaced the personal Creator in the consciousness of vast numbers of secularized Westerners, both within and without the whole body of the Christian Church, that one of the leading evolution-worshippers of our day, Professor S.J. Gould, goes so far as to describe evolutionary biology as the story of mankind. Evolution:
“….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 fascinated affirmation, Theodosius Dobzhansky (1900-1975) , a prominent evolutionary biologist and progressive creationist, sees 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)
The most widely held evolutionary cosmology, or model of the universe’s beginning and development is the Big Bang theory. According to this version of the “story of us all” the universe is thought to have ‘exploded’ from a ‘cosmic egg,’ sometimes called the ylem in a universe bounded by an edge. The Encyclopedia Britannica notes that the big bang is a theory,
“…of the evolution of the universe. Its’ essential feature is the emergence of the universe from a state of extremely high temperature and density—the so-called big bang that occurred at least 10,000,000,000 years ago…..”(Big Bang Model, The New Encyclopedia Britannica, 15th edition, 2:205, 1992)
The big bang is based on two assumptions:
“The first is that Einstein’s general theory of relativity describes the gravitational attraction of all matter. The second assumption, called the cosmological principle, states that the observer’s point of view of the universe depends neither on the direction in which he looks nor on his location. This principle applies only to the large scale properties of the universe, but it does imply that the universe has no edge, so that the big bang occurred not at a particular point in space but rather throughout space at the same time. These two assumptions make it possible to calculate the history of the cosmos after a certain epoch called the Planck time. Scientists have yet to determine what prevailed before Planck time.” (ibid)
Distinctions are in order here. While the first assumption qualifies as true science, the second assumption, sometimes misnamed the Copernican Principle, does not since it is completely metaphysical, or philosophical. This is illustrated by Edwin Hubble (1889-1953) who discovered that distant objects appeared to have ‘red shifts’ approximately proportional to distance from earth. Hubble’s speculative interpretation of this discovery presented it as evidence of an expanding universe without a center and without an edge (unbounded) as opposed to Hugh Ross, the popularizer of progressive creationism whose own imaginative assumption pictures everything exploding from a central point in a universe bounded by an edge. (Refuting Compromise: A Biblical and Scientific Refutation of ‘Progressive Creationism’ as Popularized by Astronomer Hugh Ross, Jonathan Sarfati, Ph.D., F.M., p. 146-147)
Ross’s brand of evolutionary Christianity is wildly popular among certain Christians. It was as a teenager that Ross decided the non-biblical big bang was a fact, thus it is the foundation stone of his twisted Scriptures—twisted because his big bang assumptions lead him to trip, stumble and fall down evolution’s downward-spiraling vortex blurring distinctions between humans and animals as he goes. (ibid)
The Big Bang is devoid of experimental proof, yet because the universe is definitely running down this fact surely points to some kind of beginning. This is apparently why some Christian leaders–theistic evolutionists and progressive creationists such as Pope Francis, Hugh Ross, Tim Keller and many others who feel we simply have to accept the evolutionists’ billions of years— have decided to accept the Big Bang theory. After all, the Big Bang requires a beginning, and they feel this fits with the Bible. (Big Bang — The Bucks Stop There, Henry Morris, Ph.D., icr.org)
However, not only does the Big Bang—or any other evolutionary cosmology—- not fit into the Bible but it also turns the Creator, Jesus Christ, into a liar, for He said that Adam and Eve were there “from the beginning of the creation” (Mark 10: 6; Gen. 1: 26-27) rather than several billion years after the beginning of the creation as evolutionary speculators hold.
As the Nicene Creed affirms, Gods Word starts with the creation of absolutely everything visible and invisible ex nihilo in the space of six days. In his “Literal interpretation of Genesis” Augustine of Hippo notes that when God brought material reality into existence, “then time began its flight.” That is, when God created material things (the visible), at the same time He created space and time (the invisible) as their context. (Creator and Creature, Douglas F. Kelly, Table Talk: Biblical Dichotomies, p. 6)
“It is the Spirit who gives life; the flesh (matter) is no help at all” John 6:63
The Triune God brought the angels into being sometime during that first creative week and as Thomas Aquinas, one of the most respected theologians of the medieval church affirms,
“Nothing entirely new was afterwards made by God, but all things subsequently made had in a sense been made before in the work of the six days. Some things…had a previous experience materially, as the rib from the side of Adam out of which God formed Eve; whilst others existed not only in matter but also in their causes, as those individual creatures that are now generated existed in the first of their kind.” (Summa Theologica, ibid, Sarfati, p. 120)
Evolutionary Cosmologies: Imaginative Assumptions
George Francis Rayner Ellis, a high-profile evolutionary cosmologist lets the cat out of the bag with his candid confession regarding the important role of imaginative assumptions with respect to the broad range of evolutionary models of the universe such as the Big Bang. Ellis admits:
“…I can construct…a spherically symmetrical universe with earth at its center, and you cannot disprove it based on observations.” “You can only exclude it on philosophical grounds. In my view there is absolutely nothing wrong in that. What I want to bring into the open is the fact that we are using philosophical criteria in choosing our models. A lot of cosmology tries to hide that.” (ibid, Jonathan Sarfati)
In other words, the Authority and Revelation of God, particularly in His six day creation account is rejected a priori not on the grounds of observational science but on the philosophical assumptions of arrogant, defiant speculators whose imaginative evolutionary models are metaphysical projects pretending to be observational science.
Another unspoken Big Bang assumption is neo-pagan and mystical pantheist naturalism, which ought to ring alarm bells for faithful, orthodox Christians. Naturalism posits that the universe and everything in it, including conscious life, is the result of entirely natural processes. The Big Bang therefore, is a neo-pagan and occult pantheist evolutionary cosmology, an esoteric program from hell that rejects both the personal Creator and the supernatural dimension. This position holds true despite the uninformed claims of speculators like Hugh Ross who claim that God created and ignited the Big Bang.
While Pope Francis, Tim Keller and many other liberal revisionists embrace and endorse Big Bang cosmology thirty-three leading evolutionary scientists expose its frauds and fallacies in ‘Open Letter to the Scientific Community’ published on the internet (www.cosmologystatement.org) and in New Scientist (Lerner, E., Bucking the big bang, New Scientist 182 (2448) 20, 22 May 2004). According to these evolutionary scientists:
“Our ideas about the history of the universe are dominated by big bang theory. But its dominance rests more on funding decisions than on the scientific method, according to Eric Lerner, mathematician Michael Ibison of Earthtech.org, and dozens of other scientists from around the world.” (Secular scientists blast the big bang: What now for naïve apologetics? Carl Wieland, creation.com)
The open letter includes statements such as:
- “The big bang…relies on a growing number of hypothetical entities, things that we have never observed—inflation, dark matter and dark energy are the most prominent examples. Without them, there would be a fatal contradiction between the observations made by astronomers and the predictions of the big bang theory.’
- “But the big bang theory can’t survive without these fudge factors. Without the hypothetical inflation field, the big bang does not predict the smooth, isotropic cosmic background radiation that is observed, because there would be no way for parts of the universe that are now more than a few degrees away in the sky to come to the same temperature and thus emit the same amount of microwave radiation. … Inflation requires a density 20 times larger than that implied by big bang nucleosynthesis, the theory’s explanation of the origin of the light elements.”
- “In no other field of physics would this continual recourse to new hypothetical objects be accepted as a way of bridging the gap between theory and observation. It would, at the least, raise serious questions about the validity of the underlying theory.”
4.”What is more, the big bang theory can boast of no quantitative predictions that have subsequently been validated by observation. The successes claimed by the theory’s supporters consist of its ability to retrospectively fit observations with a steadily increasing array of adjustable parameters, just as the old Earth-centred cosmology of Ptolemy needed layer upon layer of epicycles.” (ibid, Carl Wieland)
It’s amazing to see how many Christian leaders have not merely succumbed to the ‘big bang’ idea, but embrace it wholeheartedly. Carl Wieland comments:
“To hear their pronouncements, believers should welcome it as a major plank in our defense of the faith. ‘At last, we can use science to prove there’s a creator of the universe.’ However, the price of succumbing to the lure of secular acceptability, at least in physics and astronomy, has been heavy. We have long warned that adopting the big bang into Christian thought is like bringing the wooden horse within the walls of Troy.”
The Big Bang model is not the only game in town. Among other imaginative models there is the quasi-steady-state model of the big bang antagonist, the late Sir Fred Hoyle. Then there is the ekpyrotic model positing that our universe is a four-dimensional membrane embedded in a five-dimensional ‘bulk’ space. Its proponents admit:
“Our proposal is based on unproven ideas in string theory and is brand new.” (ibid, Sarfati, p. 182)
Then there are the openly occult multiverse models proposing that our universe is not the only one but that space is filled with an infinite number of parallel universes. Royal Astronomer Lord Martin Rees, who holds the honorary title of Astronomer Royal champions multiverse conceptions in the hope that in at least one or more of them living beings created themselves who are far more advanced than our own life-forms. Rees believes that if this is the case, then super-intelligent aliens might be capable of simulating in their brains or in a super-computer the complex history of our universe, meaning the universe we inhabit is a simulation lacking real substance and existing only as a mental construction in the minds of highly evolved aliens who seeded our world with life and travel through time in order to control man’s evolutionary progress. (Scientific Mythologies, James A. Herrick, p. 216)
The idea that the universe we inhabit exists only as a mental construction is very similar to Hinduism’s Brahman. Brahman is the Great Cosmic Spirit – the Ultimate One Substance (energy field, Void, Essence, prakriti matter) of material phenomena, meaning that the universe exists only as a mental construction in the mind of Brahman: brahma satyam jagan mithya, or “Brahman is real, the world is unreal.” (swamij.com/mahavakyas)
Rees proposal is also similar to the fanciful hypothesis presented by Olaf Stapledon, a scientist who has always kept one foot firmly planted in neo-pagan and occult pantheist science fiction accounts and imagines our universe to be an artifact of the Star Maker. Building off of Stapledons fantasy Carl Sagan suggests that we are“star folk” made of “star stuff.” (Herrick, pp. 216-217)
Replace Star Maker with Brahman and “star stuff” with sarvam khalvidam brahma, or “All is truly Brahman” (swamij.com) and we have ayam atma brahmam: “The Self is Brahman.” (Brihadaranyaka Upanishad 4.4.5
In the caption of his book, “Just Six Numbers,” Rees reveals that the ancient occult basis of his proposition is the serpent biting its tail:
“The ouraboros. There are links between the microworld of particles, nuclei and atoms and the cosmos.” (Rees M., Just Six Numbers, P. 9)
The serpent-powered Ouroboros with its astral planes or multiverses is well-known around the world in its’ many ancient and modern occult traditions.
Evolutionary Cosmologies: Abominations that Desolate
Like witless moths mesmerized by strange fire, from the Renaissance to our own time liberalized Christian theologians situated within the whole body of the Christian Church have been drawn irresistibly to evolution. Followed by countless unwitting souls, they’ve been flying into an abomination that desolates and ejects them into a downward-spiraling vortex issuing into eternal hell unless they repent and turn back to the Truth, the Way, and the Life (John 14:6).
Evolutionary Cosmologies: The Significance
Today’s broad range of evolutionary cosmologies symbolize the deep religious desires of certain men, who in their rejection of our Lord Jesus Christ and physical resurrection, seek autonomous self-creation, transcendence and self-redemption, thus are incarnations,
“….of the ancient, deeply religious endeavor ‘to become like God’— infinitely wise, omnipotent, autonomous, and immortal.” (Mircea Eliade, “The Forge and the Crucible: The Origins and Structures of Alchemy,” Dr. Erdmann)
They endeavor to become like God but shall instead,
“…drink of the wine of the wrath of God and be tormented with fire and brimstone.” (Rev. 14:10) And the devil who deceived them shall likewise be “thrown into the lake of burning sulfur…” (Rev. 20:10)
Little Eli Waller will never grow up to be president. The four-year-old New Jersey boy will never grow up to be anything because enterovirus D68 took his life — quite possibly because a boy who did grow up to be president, but not really a man, invited the virus into our country.
How many American children have to die in deference to the Democrats’ voter-importation, demographic-warfare effort? We often hear that you have to break a few eggs to make an omelet, but how much Ebola, enterovirus D68 (EV-D68), Chagas Disease, malaria and tuberculosis is an acceptable price to pay to maintain Barack Obama’s open-borders-über-alles policy? These are relevant questions now, especially with a recent report confirming what was always just common sense:
The deadly EV-D68 epidemic in America was likely the result of Obama’s insistence on flooding our country with tens of thousands of illegal-alien minors.
Reports Neil Munro at The Daily Caller, “The evidence includes admissions from top health officials that the epidemic included multiple strains of the virus, and that it appeared simultaneously in multiple independent locations.”
This isn’t something hard to prove or disprove. All you need do is ascertain if the strain prevalent in the US is the same as one found south of the border. This is simple epidemiology, and there’s only one reason we don’t know:
The powers that be don’t want us to know.
Can you imagine the revolutionary uproar that would have ensued if, just when EV-D68 was big in the news, it had been revealed that Obama’s lawless abdication of his responsibility had led to American deaths?
Can you imagine what would be said if it were proven that Obama has blood on his hands?
And let’s consider the EV-D68 toll to this point. As Munro writes:
So far, that virus has been found in nine people — including at least three American kids — who died from illness. It has apparently inflicted unprecedented polio-like paralysis in roughly 50 kids, and it has put hundreds of young American kids into hospital emergency wards and intensive care units throughout more than 40 states. Most of the dead have not been publicly identified.
This, not to mention the toll taken by Ebola and the others diseases brought in by Obama’s strengthening diversifiers.
And how serious is the conspiracy of silence on the EV-D68 issue? Munro reports that a “series of government researchers, health experts and academics refused to comment, or else urged self-censorship, when they were pressed by TheDC for statistical and scientific data that would exonerate Obama and his deputies.” One of these is Columbia University researcher and top EV-D68 expert Rafal Tokarz, who, as he put it, “would really rather not comment.” Another is Professor Lone Simonsen, research director of George Washington University’s Global Epidemiology Program, whose cop-out was, “I would just steer away from that — it is not helpful, so why bring it up?”
Answer: because if Americans know that a given policy allowed EV-D68’s spread, they’ll realize the policy isn’t helpful and needs to be changed.
But this certainly is not helpful to Simonsen. As Munro pointed out, perpetuating the invasion of our country “is a top priority for the Democratic leaders, who have the power to make life difficult for grant-dependent American scientists who discover politically damaging information.”
Money, by the way, is part of the root of today’s scientific evil. As to the significance of this factor, consider that BMJ.com (formerly the British Medical Journal) reported in 2012, “One in seven UK based scientists or doctors has witnessed colleagues intentionally altering or fabricating data during their research or for the purposes of publication….” (In case you were wondering, this is how you get Al Gorleone’s gaggle of greedy global-warming gangsters.)
So we have here a confluence of scientific malpractice and political malpractice. And this brings us to Munro’s quoting of scientist and Enterovirus Foundation board member Nora Chapman: “Epidemics happen when populations mix, or when viruses mutate and combine to overcome peoples’ evolved immune defenses….”
Or when populations are mixed.
As when a president seeds various parts of the country with his carriers and redistributes disease. Hey, why keep the epidemic all in one place?
But don’t expend all your energy worrying about EV-D68 — save some of it for worrying about Ebola, of which scientists now predict there will be approximately 130 US cases by year’s end.
And how many next year?
How much blood will Obama have on his hands then?
If you think the ObamaCare disaster is bad, wait ’til you see the one wrought by ObamaDoesn’tCare.
Reince Priebus, the chairman of the Republican National Committee (RNC), was on a conference call this past Monday evening, which was sponsored by TheTeaParty.net and attended by hundreds of Tea Party activists. During the conference call, a Tea Party activist asked him about President Barack Obama’s plans for executive amnesty. Priebus replied, “It’s unconstitutional, illegal, and we don’t support it.”
Breitbart.com covered the story. “‘While I can’t speak for the legislature, I’m very confident we will stop that,’ Priebus said. ‘We will do everything we can to make sure it doesn’t happen: Defunding, going to court, injunction. You name it. It’s wrong. It’s illegal. And for so many reasons, and just the basic fabric of this country, we can’t allow it to happen and we won’t let it happen. I don’t know how to be any stronger than that. I’m telling you, everything we can do to stop it we will.’”
Breitbart goes on to quote Priebus, “‘I have said repeatedly on immigration that the first thing is border security and the second thing is upholding the law that’s in place today. What ever happened to the border fence that was promised by Congress in 2006? It never happened. What about these sanctuary cities out there that take federal money and they’re not even upholding the law that we have in place? So somehow or another what can’t get lost in any of this conversation is the importance of border security and making sure that any sort of immigration reform talk doesn’t even begin without taking that first step.’”
As Ronald Reagan said to President Jimmy Carter, “There you go again.” There the GOP goes again: making a promise they have absolutely no intention of keeping.
Priebus’ promise that, should the GOP capture the U.S. Senate, they will stop Obama’s executive amnesty is just so much hot air. I guess he thinks that we have all forgotten then Speaker of The House Newt Gingrich’s “Contract With America.”
During the congressional elections of 1994, Gingrich promised the American people that if they put Republicans in charge of the Congress, they would pass legislation to eliminate five federal departments (Education, Energy, Commerce, Interior, and Housing and Urban Development), 95 federal domestic programs, and slash federal spending across the board. The GOP promises made during the ’94 elections became known as the “Contract With America.”
GOP promises during that election cycle proved extremely successful. In the House of Representatives there was a 54-seat swing to the Republicans, which gave them a majority of seats for the first time since 1954. In the U.S. Senate there was an eight-seat swing, which allowed the GOP to capture both houses of Congress.
During the succeeding congressional session, many of the elements of the Contract were indeed passed by the Republican-led House of Representatives. It was quite another story in the GOP-led Senate. In the Senate, most of the promised bills were either killed altogether or seriously compromised through a variety of watered-down amendments. A few bills–and I mean a precious few bills–made it somewhat intact out of the Senate. At the end of the session, very little of the Contract survived. In fact, during that time, Republican senators reminded everyone that the Contract With America was only the promise of the GOP House, that the GOP Senate never joined in that promise. (Politicians are the slickest liars in the world, are they not?)
While there were several positive results of that “Republican Revolution” of 1994, including a balanced budget in 1998 and surpluses in the federal budgets from 1999-2001–all of these budgets being proposed by Democratic President Bill Clinton–Gingrich and Senate Majority Leader Trent Lott quickly began to compromise away most of the principles of the 1994 Contract. This led to Gingrich being ousted as Speaker of the House.
Of course, none of the five federal departments targeted were eliminated–neither were any of the 95 targeted federal programs. In fact, not only were these departments and programs not eliminated, funding for all of these departments and programs actually INCREASED under the GOP-led Congress. In 2000, Edward Crane, president of the Cato Institute, noted that “the combined budgets of the 95 major programs that the Contract With America promised to eliminate have increased by 13%.” And, in case Republicans want to try and blame the Democrat Bill Clinton for these budgetary backslidings, the facts just don’t support it.
Consider the fact that from 2001 through 2006, the GOP controlled the entire federal government: the White House, House of Representatives, and Senate. Plus, Republican-appointed justices comprised a majority on the U.S. Supreme Court. (That has been the case since the early 1970s). During those long six years, the GOP-dominated federal government NEVER revisited the principles of the Contract With America. In fact, the Bush years are on record as seeing the most explosive growth in federal spending and overreach in U.S. history to that time. There has been absolutely NOTHING fiscally conservative about the Twenty-First Century GOP. And that’s a fact.
Again, even though the GOP controlled the entire federal government for the first six years of this century, there was no attention given to the promises of the 1994 Contract With America. In addition, no attention was given to overturning Roe v. Wade and ending legalized abortion-on-demand, and no attention was given to overturning Bill Clinton’s egregiously unconstitutional Executive Orders. In fact, no attention was given to G.W. Bush’s campaign promises of fiscal restraint and no-nation building, non-aggressive foreign policy promises, or his vow to honor the Constitution by curbing the usurpations of Washington, D.C., of individual liberties and civil rights. What a joke that turned out to be!
Now we have a Democratic President, Barack Obama, who is one of the most unpopular presidents of our entire history, and the GOP is struggling to energize its own base. How pathetic is that? That’s why RNC Chairman Reince Priebus took to the air with a live conference call with Tea Party activists. The national GOP has so alienated Tea Party conservatives that it is concerned that even with a despised Democrat President, disenfranchised conservatives within the GOP could stay home in large numbers next Tuesday.
Priebus’ concern is warranted.
So, Priebus makes a Contract With America-type promise: give us the Senate and we will stop Obama’s executive amnesty. And even though it was a conference call, I assume he said it with a straight face. The problem is, it is a lie, and Priebus knows it.
Obama is going to sign his executive amnesty order soon after the elections and before the Senate convenes next year. And there are about as many Republicans in the Senate that favor amnesty as there are Democrats. Does anyone really think that John McCain, Lindsey Graham, Lamar Alexander, et al. are going to get exercised over amnesty? The Chamber of Commerce establishment Republicans are salivating over amnesty for illegals. Some of them are trying to hide an amnesty amendment in the upcoming NDAA even as we speak. Plus, just exactly what is the Senate going to do to overturn an executive amnesty order? I can already hear it. After the GOP wins the Senate, they will say, “Well, as the U.S. Senate, we can’t really do anything; we need a Republican President in 2016. Then we will do something about it.” And the beat goes on.
It’s not about stopping amnesty; it’s about political posturing for a November election. House Speaker John Boehner has promised Big Business Republicans an amnesty deal. Does anyone in their right mind believe the GOP is going to overturn an Obama amnesty order? It’s a campaign bluff. I know it; and so does Barack Obama. (I would love to be proven wrong; but the GOP track record says I am 100% right.)
The Breitbart report goes on to say, “Priebus said at the end of the town hall that he thinks it’s important for Tea Partiers and the grassroots to hold Republicans accountable.
“‘I think it’s important to build our party through addition and make sure that we don’t subtract people out of our party,’ he said. ‘It’s also important for the Tea Party to hold the Republican Party accountable. I get that. It’s not always a cheerleading opportunity. It’s both that we’re going to be with you and help you, but we have to hold you accountable once in a while. And I understand that and respect it.’”
See the report here:
No, Priebus doesn’t understand that; neither does he respect it. This is pure partisan party electioneering.
The GOP leadership has not allowed itself to be held accountable to ANYBODY. They wouldn’t let Ross Perot do it; they wouldn’t let Pat Buchanan do it; they wouldn’t let Ron Paul do it; and they aren’t letting the Tea Party Republicans do it. They think themselves above their own platform, above their conservative base, and even above the U.S. Constitution. Accordingly, they have been subtracting numbers from their own ranks for a long, long time. Where do you think the Libertarian and Constitution parties came from? Where do you think so many of the registered independent voters came from?
In any given national election the numbers of people who stay home and don’t vote always outnumber the ones who do vote. Why is that? It’s because both the Democrat and Republican parties have been ignoring so much of their grassroots base that people from both parties have been drifting away by the millions. People by the millions have given up on both major parties. Neither party in Washington, D.C., respects the people of the United States or the U.S. Constitution. Both parties grovel before Big Money. That’s why so many people have removed themselves from the two major parties.
If the Republican leadership in Washington, D.C., had been listening to its base over the past several years, Barack Obama would not be President today and the GOP would not be biting its fingernails as to whether they can take back the Senate. This should be a slam-dunk election for the GOP. And, despite the stiff-necked, Big Business, Big Brother leadership of the national Republican Party, I think the GOP will take the Senate. But if you think for one minute that a GOP-led Senate and House will do diddly squat to stop Obama’s amnesty order or to close our Southern Border, there is this bridge in the Mojave Desert you need to look at. The GOP is famous for doing NOTHING after elections are won.
Reince Priebus lamented over the failure of Congress to honor its promise to close the Southern Border back in 2006. Well, Mr. Priebus, it was the Republican Party that controlled the federal government from 2001-2006, and despite their promises to close the Southern Border, did NOTHING to actually do it. And you think a GOP-led Congress is going to do something about it now? What a joke! Most of the anti-amnesty Republicans are in the House, and they are not even a majority within their own caucus there. Try to name the anti-amnesty senators. The only ones I can recall who have been outspoken against amnesty are Jeff Sessions, Ted Cruz, and Mike Lee. Even Rand Paul has softened on the subject.
I wasn’t on the Tea Party conference call last Monday evening with Mr. Priebus when he said what he said, but I’m hoping someone on the call hollered, “There you go again.”
The Comité De Salut Public during the French Revolution exhibited a pattern for nightmares far removed from their stated purpose as a Committee of Public Safety. The reign of terror that arose from the shambles created by the Society of the Jacobins, based upon extreme egalitarianism, actually produced a most violent outcome. If you are one of those lost souls who cling to the latest narrative from the designer media reporting machine, the fear factor is working overtime. What can be more impartial than the threat of succumbing to an Ebola epidemic? Well, if you believe this hysteria, maybe the imminent acts of terror from those Islamic fascists; now called ISIS, will get your blood pressure to spike. Both share a paranoia manufactured in the labs of mind control more than in the actuary records of fact.
Worry that a global pandemic is in the making causes more psychosis than any screenplay coming out of tinsel town. Ebola has much in common with “The stuff that dreams are made of” for the social engineers and population control psychopaths. While human life is lost to this virus, when did this planet ever value the existence of individual human beings?
One viewpoint purports that The 5 Biggest Lies About Ebola Being Pushed by Government & Mass Media are inhibiting a proper response.
Lie #1) Ebola won’t ever come to the United States
Well, that one has been disproved.
Lie #2) Ebola is only spread via direct contact with body fluids
Nice to ignore those aerosols – airborne particles
Lie #3) Don’t worry: Health authorities have everything under control
Now who in their right mind is going to believe this nonsense?
Lie #4) The only defense against Ebola is a vaccine or a pharmaceutical drug
This one starts to shed light on some of the motivation behind the response.
Lie #5) Ebola came out of nowhere and was a random fluke of nature
The big lie theory always seems to work on the naïve public.
Think outside the box. Pose the question that no one in the mainstream culture dares to ask. Why expend extreme dread about a mutating infection when most of the “so called” civilized world is currently consumed on intentionally taking a road to annihilation. If the Ebola outbreak is the ultimate culling of the herd, the argument of the disinformation artists already won the day.
Wearing down the natural immunized capacity of people to discount and reject the hype and fabricated perception of reality, is far more lethal than the actual threat of a medical disease. Prudence prescribes preparative precautions. However, ignoring the far more dangerous menaces to our well being can truly be terminable.
Survival seems paramount to secular society. Since this is the case, why is so much energy and mental attention devoted to chasing false Armageddons? ISIS is an obvious example of the playing out the same old strategy of creating an enemy in order that the ruling class can come to the rescue. Alas, delivering a solution or victory is intentionally unattainable.
Senators like Lindsay Graham and John McCain revel in juicing up their NeoCon followers with their fright campaign to keep the war machine rumbling along. Their manta is not just old, it is laughable. So many Americans are deluded by the fantasy of fighting a war against terrorism for generations to come, that they are oblivious from learning the history that created this madness.
The New York Times publishes an article, For Many Iranians, the ‘Evidence’ Is Clear: ISIS Is an American Invention. Oh dear, who could believe any observation from that axis of evil regime?
“Ayatollah Khamenei reminded them that Al Qaeda — a creation of the Central Intelligence Agency, Iran has said — and the Taliban were, in the eyes of Iranian intelligence, devised by the West as a counterweight to Iran.”
When Iranian television aired images of Senator John McCain, the hawkish Arizona Republican, at a meeting with the current caliph of ISIS, Abu Bakr al-Baghdadi, an announcer added.
“These say more than a thousand words regarding the links between the United States and this group.”
So when Iranians express their distrust, the full thrust of the NWO establishment condemns their conclusions.
“But the claim that ISIS is a creation of the Obama administration has gained wide traction here. From the Iranian viewpoint, shaped by their spotty exposure to Western culture, analysts say, creating a terrorist organization opposed to Iranian interests is the obvious thing for a superpower to do.”
Exactly what is the advantage of being under the spell of exposure to Western culture, when the flagship of approved news reporting refuses to admit that interventionism into the Middle East has been a total disaster for ordinary Americans?
That old JFK trademark, “in the final analysis” the betrayal of real national security has become the hallmark of U.S. foreign policy.
Wasting time on all the breaking news about the latest development on ISIS is pure folly. The absurd assertions that ISIS is about to initiate attacks on domestic soil, only serves to alarm an already high-anxiety induced citizenry.
Both Ebola and ISIS alleged scourges could be precluded with very basic border control measures. Common sense is a prime casualty in preventive national protection. Yet, the Homeland Security culture asserts the same delusional rhetoric as the Committee of Public Safety exhibited as the bloodbath of the French Revolution flowed into the streets of Paris.
The difference in this age of instant communication and immediate gratification is that the speed and scope of scares spread instantaneously. Where is the prioritization of risk? What will it take to focus on true distress targets of momentous calamities, which are consistently ignored in our brainwashed culture?
When was the last time you read or heard a significant report of the ongoing Fukushima contamination from the radiation meltdown? Or has that little catastrophe been wiped from the consciousness of the collective mind? All these questions become taxing. People are not used to thinking beyond the sound bites from yesterday.
Energy News provides the following: US gov’t analysis says Fukushima is more serious than ‘China Syndrome’ — Destroyed reactors suffered worst type of containment failure. Review the best resources on this topic from Rense.com links. Nonetheless, most would reply that an Ebola epidemic is an immediate health hazard, while radiation migration will only cause cancer deaths over time.
Gee, another acquiescence that open borders are inevitable – the prevailing wind and currents know no national boundary. Well, to the simple mind, that must mean the same is true for blocking air flights from West African contaminated zones or for CIA trained jihad Islamists.
Government boasts that their mission to protect the public takes precedent over civil liberties or constitutional law. Just how well are these Jacobin thugs doing in keeping you safe?
Listing all the steps that have practical probability for success to eliminate the Ebola and ISIS dilemmas are futile to debate as long as the intended purpose of the careerist political class and globalist financial elite is to implement their reign of terror.
That infamous New World Order icon Franklin D. Roosevelt’s First Inaugural Address quote: “Only Thing We Have to Fear Is Fear Itself”, actually should read “Only Thing We Have to Fear Is Government Itself”. The Bull S#$& that constitutes the 24/7 news cycle which expounds and rationalizes government policy and the police state is the true plague.
In order to establish a “Free Zone” from all the Ebola and ISIS propaganda, folks need to escape the BS and engage the real world by dropping out from the controlled grid of establishment lunacy.
Most of the literal risks that people are susceptible to encounter are avoidable with behavioral modifications. While life itself is the supreme adventure, avoiding perilous circumstances should be a component of sensible conduct. Regrettably, government rejects this standard and most of the time is devoted to create the circumstance that endangers their citizens.
Treacherous planning for martial law imposition thrives on the outbreak of Ebola hysteria. The frenzy amplifies calls for cures. Healing by quarantine is not a medical remedy, it is a reactionary response. What an ideal environment to foster even greater control. Keep illness intact, while reducing free association among the healthy.
ISIS may want to spread this deadly version of wellness destruction when they capture their next stash of armament weapons. Keeping the threat alive is much more important than merely killing non-combatants. A free zone of analysis accepts the Iranian interruption over the MSM version. The same analytic thinking leads to the inference that a mass phobia stampede leads to the desired public demand for government salvation.
Tune out this effort to herd the sheeple to slaughter. Start protecting yourself and prepare for your own safety. The hazmat response team will not rescue you from a system based upon deception, fraud and disinformation. Then what is the difference, the Fukushima contagion illustrates that the cockroaches will inherent the planet. Maybe they will do better than this mentally ill society.
The ISIS siege of Kobane continued overnight while cities across Turkey were set ablaze by Kurdish protestors. At least 19 civilians were killed by Turkish riot police who were trying to disperse angry crowds that had gathered to protest the government’s unwillingness to defend the predominantly Kurdish city. According to Hurriyet, “The worst violence was seen in Diyarbakır during a reported gunfight between the Kurdistan Workers Party (PKK) supporters and Hizbullah, a radical Islamist group whose members are mostly Kurdish and who allegedly aided the state in the torture and killing of Kurdish activists in the 1990s.” (Hurriyet)
Although the Turkish Parliament approved a measure to allow the government to carry out cross-border attacks on ISIS, President Recep Tayyip Erdogan has not yet ordered its tanks and troops into battle. Erdogan has been dragging his feet so that ISIS will prevail over Kobane’s Kurdish fighters thus ending their struggle for autonomy and independence. This is why the reaction among Turkish Kurds has been so ferocious; it’s because Erdogan is using the Sunni radicals as a proxy army to batter the Kurds into submission. A scathing op-ed in last night’s Hurriyet summarized Erdogan’s tacit support for ISIS like this:
“Naturally, one has to ask who fathered, breastfed and nourished these Islamist terrorists in hopes and aspirations of creating a Sunni Muslim Brotherhood Khalifat state? Even when Kobane and many Turkish cities were on fire, did not the Turkish prime minister talk in his interview with CNN about his readiness to order land troops into the Syrian quagmire if Washington agreed to also target al-Assad?
This is a dirty game….” (Editorial, “Kobane and Turkey are Burning“, Hurriyet Daily News)
This is true, Turkey has “fathered, breastfed and nourished” Sunni extremism which is what makes the country a particularly untrustworthy ally in a war intended to defeat ISIS. According to author Nafeez Ahmed:
“With their command and control centre based in Istanbul, Turkey, military supplies from Saudi Arabia and Qatar in particular were transported by Turkish intelligence to the border for rebel acquisition. CIA operatives along with Israeli and Jordanian commandos were also training FSA rebels on the Jordanian-Syrian border with anti-tank and anti-aircraft weapons. In addition, other reports show that British and French military were also involved in these secret training programmes. It appears that the same FSA rebels receiving this elite training went straight into ISIS – last month one ISIS commander, Abu Yusaf, said, “Many of the FSA people who the west has trained are actually joining us.”
(“How the West Created the Islamic State“, Nafeez Ahmed, CounterPunch
Then there’s this from Tuesday’s USA Today:
“Militants have funneled weapons and fighters through Turkey into Syria. The Islamic State and Jabhat al-Nusra, an al-Qaeda affiliate in Syria, have networks in Turkey….
Turkish security and intelligence services may have ties to Islamic State militants. The group released 46 Turkish diplomats it had abducted the day before the United States launched airstrikes against it. Turkey, a NATO member, may have known the airstrikes were about to begin and pressured its contacts in the Islamic State to release its diplomats.
“This implies Turkey has more influence or stronger ties to ISIS than people would think,” Tanir said.”
(“5 reasons Turkey isn’t attacking Islamic State in Syria”, USA Today)
So while the connection between ISIS and Turkish Intelligence remains murky, it’s safe to say there is a connection which makes Turkey an unreliable partner in a prospective war against the same group. So why is Erdogan so eager to lead the charge into Syria?
It’s because Erdogan thinks he can use ISIS as cover for his real objective, which is seize Damascus, topple Assad and replace him with a Sunni stooge who will tilt in Ankara’s direction. This is from a post by Stratfor at Zero Hedge:
“This is why Turkey is placing conditions on its involvement in the battle against the Islamic State: It is trying to convince the United States and its Sunni Arab coalition partners that it will inevitably be the power administering this region. Therefore, according to Ankara, all players must conform to its priorities, beginning with replacing Syria’s Iran-backed Alawite government with a Sunni administration that will look first to Ankara for guidance.” (“Turkey, The Kurds And Iraq – The Prize & Peril Of Kirkuk”, zero hedge)
So this is why Turkey wants to spearhead the invasion into Syria, so it can expand its power in the region?
It appears so, but there’s more to it than just that. As is true with most conflicts in the Middle East, oil is also a major factor. The Turks expect to be big players in the regional energy market after Assad is removed and pipeline corridors are established from the giant South Pars/North Dome gas field off Qatar. The pipeline will run from Qatar, to Iraq, to Syria and on to Turkey, providing vital supplies for the voracious EU market. There are also plans for an Israel to Turkey pipeline accessing gas from the massive Leviathan gas field located off the coast of Gaza. Both of these projects will strengthen Turkey’s flagging economy as well as bolster its stature and influence in the region.
Naturally, the allure of wealth and power has been a decisive factor in shaping Ankara’s Syria policy. But there’s a good chance that Erdogan’s strategy will backfire and Turkey will get bogged down in a protracted conflict in which there are no clear winners and no easy way out. In this respect, Erdogan follows a long line of equally aggressive leaders whose ambitions clouded their judgment precipitating their downfall. Only a fool would think that Syria will be a cakewalk.
Turkey has made it clear that it will not go-it-alone in Syria. According to CNN report on Thursday:
“Turkey’s foreign minister insisted Thursday that it is not “realistic” for the world to expect it alone to launch a ground operation against ISIS, even as a monitoring group said the extremists had seized a chunk of a key battleground town near its border.” (CNN)
Erdogan wants US support although, so far, he has not stipulated whether that means ground troops or not. He has said repeatedly, however, that bombing ISIS from the air won’t achieve their purpose. And even on that score, the US has been AWOL. So far, the US has launched a mere six aerial attacks on ISIS positions on the outskirts of the city, not nearly enough to deter battle-hardened jihadis from pressing deeper into Kurdish territory. Could it be that Obama made a deal with Erdogan to allow Kobane to be overrun in exchange for concessions on the use of Turkish military bases that will be used to carry out attacks on Syria?
It could be, although there’s no way of knowing for sure. What’s clear is that Obama doesn’t really care what happens to the Kurds in Kobane or not. What matters to Obama is toppling Assad and replacing him with a US puppet. The death of innocent civilians at the hands of homicidal maniacs doesn’t even factor into Washington’s calculations. It’s just more grist for the mill. Now check out this excerpt from an article by Patrick Cockburn:
”The leader of the (Kurdish) PYD, Salih Muslim, is reported to have met officials from Turkish military intelligence to plead for aid but was told this would only be available if the Syrian Kurds abandoned their claim for self-determination, gave up their self-governing cantons, and agreed to a Turkish buffer zone inside Syria. Mr Muslim turned down the demands and returned to Kobani.” (ISIS on the Verge of Victory at Kobani”, Patrick Cockburn, Counterpunch)
Is this blackmail or what? Doesn’t this explain why Kurds are rioting and setting buildings ablaze across Turkey? How would you react, dear reader, if your people were told to either ‘Give up your dreams of independence or face a violent death at the hands of religious fanatics’? Would you think that was an unreasonable demand?
Erdogan wants to defeat the Kurdish fighters in Kobane and put an end to Kurdish nationalism. And he doesn’t care how he does it.
Keep in mind, that just this week, Turkish Prime Minister Ahmet Davutoglu said in a CNN interview that the US must agree that Assad will be removed before Turkey will commit ground troops to the war against ISIS. To his credit, Obama has not yet agreed to Erdogan’s terms although pressure in Congress and the media is steadily building. And this is just one of Erdogan’s many demands. He also wants the US to implement a no-fly zone over Syria and to create buffer zone along the Turkish border. In exchange, Turkey will provide boots on the ground and the use of its military bases. The US can expect to pay a heavy price for Turkey’s help in Syria.
OBAMA: “Don’t do stupid shit”
US policy towards Syria is not yet set in stone, in fact, the Obama administration appears to be in a state of turmoil. It could be that Obama’s chief advisors see the potential pitfalls of an invasion of Syria or of persisting with the same lame policy of arming, training and funding Islamic radicals. Or it could it be that the administration doesn’t want to team up with an unreliable ally like Turkey whose Intel agencies have helped create the present crisis? Or it could simply be that Obama has decided to follow his own advice and “Don’t do stupid shit”. Whatever the reason, the administration seems to be vacillating on the way forward.
One can only hope that Obama will grasp the inherent risks of the poring more gas on the Middle East, reject the orders of his deep state handlers, and seek a peaceful solution to the crisis in Syria. That, of course, would require cooperation with Syria’s allies, Russia and Iran, to settle on a way to defeat the jihadis, strengthen Syria’s sovereign control over its own territory, and restore peace across the country. No doubt Assad would be more than willing to make democratic concessions if he believed it would save his country from the destruction of a full-blown war.
The University of Al-Qaeda?
“Since 2003, Anglo-American power has secretly and openly coordinated direct and indirect support for Islamist terrorist groups linked to al-Qaeda across the Middle East and North Africa. This ill-conceived patchwork geostrategy is a legacy of the persistent influence of neoconservative ideology, motivated by longstanding but often contradictory ambitions to dominate regional oil resources, defend an expansionist Israel, and in pursuit of these, re-draw the map of the Middle East.” Nafeez Ahmed, “How the West Created the Islamic State“, CounterPunch
“The US created these terrorist organizations. America does not have the moral authority to lead a coalition against terrorism.” Hassan Nasralla, Secretary General of Hezbollah
October 06, 2014 “ICH” – “Counterpunch” – The Obama administration’s determination to topple Syrian President Bashar al-Assad is pushing the Middle East towards a regional war that could lead to a confrontation between the two nuclear-armed rivals, Russia and the United States.
Last week, Turkey joined the US-led coalition following a vote in parliament approving a measure to give the government the authority to launch military action against Isis in Syria. Turkish President Recep Tayyip Erdogan made it clear that Turkish involvement would come at a price, and that price would be the removal of al Assad. According to Turkey’s Hurriyet Daily News:
“Turkey will not allow coalition members to use its military bases or its territory in the fight against the Islamic State of Iraq and the Levant (ISIL) if the objective does not also include ousting the Bashar al-Assad regime, President Recep Tayyip Erdoğan hinted on Oct. 1…
“We are open and ready for any cooperation in the fight against terrorism. However, it should be understood by everybody that Turkey is not a country in pursuit of temporary solutions, nor will Turkey allow others to take advantage of it,” Erdoğan said in his lengthy address to Parliament.”..
“Turkey cannot be content with the current situation and cannot be a by-stander and spectator in the face of such developments.” (“Turkey will fight terror but not for temporary solutions: Erdoğan“, Hurriyet)
Officials in the Obama administration applauded Turkey’s decision to join the makeshift coalition. U.S. Secretary of Defense Chuck Hagel hailed the vote as a “very positive development” while State Department spokeswoman Jen Psaki said, “We welcome the Turkish Parliament’s vote to authorize Turkish military action…We’ve had numerous high-level discussions with Turkish officials to discuss how to advance our cooperation in countering the threat posed by ISIL in Iraq and Syria.”
In the last week, “Turkish tanks and other military units have taken position on the Syrian border.” Did the Obama administration strike a deal with Turkey to spearhead an attack on Syria pushing south towards Damascus while a small army of so called “moderate” jihadis– who are presently on the Israeli border– move north towards the Capital? If that is the case, then the US would probably deploy some or all of its 15,000 troops currently stationed in Kuwait “including an entire armored brigade” to assist in the invasion or to provide backup if Turkish forces get bogged down. The timeline for such an invasion is uncertain, but it does appear that the decision to go to war has already been made.
Turkish involvement greatly increases the chances of a broader regional war. It’s unlikely that Syria’s allies, Russia and Iran, will remain on the sidelines while Turkish tanks stream across the country on their way to Damascus. And while the response from Tehran and Moscow may be measured at first, it is bound to escalate as the fighting intensifies and tempers flare. The struggle for Syria will be a long, hard slog that will probably produce no clear winner. If Damascus falls, the conflict will morph into a protracted guerilla war that could spill over borders engulfing both Lebanon and Jordan. Apparently, the Obama administration feels the potential rewards from such a reckless and homicidal gambit are worth the risks.
No-Fly Zone Fakery
The Obama administration has made little effort to conceal its real objectives in Syria. The fight against Isis is merely a pretext for regime change. The fact that Major General Martin Dempsey, chairman of the Joint Chiefs of Staff, and Chuck Hagel are angling for a no-fly zone over Syria exposes the “war against Isis” as a fraud. Why does the US need a no-fly zone against a group of Sunni militants who have no air force? The idea is ridiculous. The obvious purpose of the no-fly zone is to put Assad on notice that the US is planning to take control of Syrian airspace on its way to toppling the regime. Clearly, Congress could have figured this out before rubber stamping Obama’s request for $500 million dollars to arm and train “moderate” militants. Instead, they decided to add more fuel to the fire. If Congress seriously believes that Assad is a threat to US national security and “must go”, then they should have the courage to vote for sending US troops to Syria to do the heavy lifting. The idea of funding shadowy terrorist groups that pretend to be moderate rebels is lunacy in the extreme. It merely compounds the problem and increases the prospects of another Iraq-type bloodbath. Is it any wonder why Congress’s public approval rating is stuck in single digits?
TURKEY: A Major Player
According to many sources, Turkey has played a pivotal role in the present crisis, perhaps more than Saudi Arabia or Qatar. Consider the comments made by Vice President Joe Biden in an exchange with students at the John F. Kennedy Jr. Forum at the Institute of Politics at Harvard University last week. Biden was asked: “In retrospect do you believe the United States should have acted earlier in Syria, and if not why is now the right moment?” Here’s part of what he said:
“…my constant cry was that our biggest problem is our allies – our allies in the region were our largest problem in Syria. The Turks were great friends – and I have the greatest relationship with Erdogan, which I just spent a lot of time with – the Saudis, the Emiratis, etc. What were they doing? They were so determined to take down Assad and essentially have a proxy Sunni-Shia war, what did they do? They poured hundreds of millions of dollars and tens, thousands of tons of weapons into anyone who would fight against Assad except that the people who were being supplied were Al Nusra and Al Qaeda and the extremist elements of jihadis coming from other parts of the world…
So now what’s happening? All of a sudden everybody’s awakened because this outfit called ISIL which was Al Qaeda in Iraq, which when they were essentially thrown out of Iraq, found open space in territory in eastern Syria, work with Al Nusra who we declared a terrorist group early on and we could not convince our colleagues to stop supplying them. So what happened? Now all of a sudden – I don’t want to be too facetious – but they had seen the Lord. Now we have – the President’s been able to put together a coalition of our Sunni neighbors, because America can’t once again go into a Muslim nation and be seen as the aggressor – it has to be led by Sunnis to go and attack a Sunni organization.”
Biden apologized for his remarks on Sunday, but he basically let the cat out of the bag. Actually, what he said wasn’t new at all, but it did lend credibility to what many of the critics have been saying since the very beginning, that Washington’s allies in the region have been arming and funding this terrorist Frankenstein from the onset without seriously weighing the risks involved. Here’s more background on Turkey’s role in the current troubles from author Nafeez Ahmed:
“With their command and control centre based in Istanbul, Turkey, military supplies from Saudi Arabia and Qatar in particular were transported by Turkish intelligence to the border for rebel acquisition. CIA operatives along with Israeli and Jordanian commandos were also training FSA rebels on the Jordanian-Syrian border with anti-tank and anti-aircraft weapons. In addition, other reports show that British and French military were also involved in these secret training programmes. It appears that the same FSA rebels receiving this elite training went straight into ISIS – last month one ISIS commander, Abu Yusaf, said, “Many of the FSA people who the west has trained are actually joining us.” (“How the West Created the Islamic State“, Nafeez Ahmed, CounterPunch
Notice how the author points out the involvement of “CIA operatives”. While Biden’s comments were an obvious attempt to absolve the administration from blame, it’s clear US Intel agencies knew what was going on and were at least tangentially involved. Here’s more from the same article:
“Classified assessments of the military assistance supplied by US allies Saudi Arabia and Qatar obtained by the New York Times showed that “most of the arms shipped at the behest of Saudi Arabia and Qatar to supply Syrian rebel groups… are going to hardline Islamic jihadists, and not the more secular opposition groups that the West wants to bolster.”
Once again, classified documents prove that the US officialdom knew what was going on and simply looked the other way. All the while, the hardcore takfiri troublemakers were loading up on weapons and munitions preparing for their own crusade. Here’s a clip that Congress should have read before approving $500 million more for this fiasco:
” … Mother Jones found that the US government has “little oversight over whether US supplies are falling prey to corruption – or into the hands of extremists,” and relies “on too much good faith.” The US government keeps track of rebels receiving assistance purely through “handwritten receipts provided by rebel commanders in the field,” and the judgment of its allies. Countries supporting the rebels – the very same which have empowered al-Qaeda affiliated Islamists – “are doing audits of the delivery of lethal and nonlethal supplies.”…
the government’s vetting procedures to block Islamist extremists from receiving US weapons have never worked.” (“How the West Created the Islamic State”, Nafeez Ahmed, CounterPunch)
These few excerpts should help to connect the dots in what is really a very hard-to-grasp situation presently unfolding in Syria. Yes, the US is ultimately responsible for Isis because it knew what was going on and played a significant part in arming and training jihadi recruits. And, no, Isis does not take its orders directly from Washington (or Langley) although its actions have conveniently coincided with US strategic goals in the region. (Many readers will undoubtedly disagree with my views on this.) Here’s one last clip on Turkey from an article in the Telegraph. The story ran a full year ago in October 2013:
“Hundreds of al-Qaeda recruits are being kept in safe houses in southern Turkey, before being smuggled over the border to wage “jihad” in Syria, The Daily Telegraph has learned.
The network of hideouts is enabling a steady flow of foreign fighters – including Britons – to join the country’s civil war, according to some of the volunteers involved.
These foreign jihadists have now largely eclipsed the “moderate” wing of the rebel Free Syrian Army, which is supported by the West. Al-Qaeda’s ability to use Turkish territory will raise questions about the role the Nato member is playing in Syria’s civil war.
Turkey has backed the rebels from the beginning – and its government has been assumed to share the West’s concerns about al-Qaeda. But experts say there are growing fears over whether the Turkish authorities may have lost control of the movement of new al-Qaeda recruits – or may even be turning a blind eye.” (“Al-Qaeda recruits entering Syria from Turkey safehouses“, Telegraph)
Get the picture? This is a major region-shaping operation that the Turks, the Saudis, the Qataris, the Americans etc are in on. Sure, maybe some of the jihadis went off the reservation and started doing their own thing, but even that’s not certain. After all, Isis has already achieved many of Washington’s implicit objectives: Dump Nuri al Maliki and replace him with a US stooge who will amend the Status of Forces Agreement. (SOFA), allow Sunni militants and Kurds to create their own de facto mini-states within Iraq (thus, eliminating the threat of a strong, unified Iraq that will challenge Israeli hegemony), and create a tangible threat to regional security (Isis) thereby justifying US meddling and occupation for the foreseeable future. So far, arming terrorists has been a winning strategy for Obama and Co. Unfortunately for the president, we are still in the early rounds of the emerging crisis. Things could backfire quite badly, and probably will.
(NOTE: According to Iran’s Press TV: “The ISIL terrorists have purportedly opened a consulate in Ankara, Turkey and use it to issue visas for those who want to join the fight against the Syrian and Iraqi governments….The militants are said to be operating freely inside the country without much problem.” I have my doubts about this report which is why I have put parentheses around it, but it is interesting all the same.)
CAMP BUCCA: University of Al-Qaeda
So where do the Sunni extremists in Isis come from?
There are varying theories on this, the least likely of which is that they responded to promotional videos and propaganda on social media. The whole “Isis advertising campaign” nonsense strikes me as a clever disinformation ploy to conceal what’s really going on, which is, that the various western Intel agencies have been recruiting these jokers from other (former) hotspots like Afghanistan, Libya, Chechnya, Kosovo, Somalia and prisons in Iraq. Isis not a spontaneous amalgam of Caliphate-aspiring revolutionaries who spend their off-hours trolling the Internet, but a collection of ex Baathists and religious zealots who have been painstakingly gathered to perform the task at hand, which is to lob off heads, spread mayhem, and create the pretext for US-proxy war. Check out this illuminating article on Alakhbar English titled “The mysterious link between the US military prison Camp Bucca and ISIS leaders”. It helps explain what’s really been going on behind the scenes:
“We have to ask why the majority of the leaders of the Islamic State (IS), formerly the Islamic State in Iraq and Syria (ISIS), had all been incarcerated in the same prison at Camp Bucca, which was run by the US occupation forces near Omm Qasr in southeastern Iraq….. First of all, most IS leaders had passed through the former U.S. detention facility at Camp Bucca in Iraq. So who were the most prominent of these detainees?
The leader of IS, Abu Bakr al-Baghdadi, tops the list. He was detained from 2004 until mid-2006. After he was released, he formed the Army of Sunnis, which later merged with the so-called Mujahideen Shura Council…
Another prominent IS leader today is Abu Ayman al-Iraqi, who was a former officer in the Iraqi army under Saddam Hussein. This man also “graduated” from Camp Bucca, and currently serves as a member on IS’ military council.
Another member of the military council who was in Bucca is Adnan Ismail Najm. … He was detained on January 2005 in Bucca, and was also a former officer in Saddam’s army. He was the head of a shura council in IS, before he was killed by the Iraqi army near Mosul on June 4, 2014.
Camp Bucca was also home to Haji Samir, aka Haji Bakr, whose real name is Samir Abed Hamad al-Obeidi al-Dulaimi. He was a colonel in the army of the former Iraqi regime. He was detained in Bucca, and after his release, he joined al-Qaeda. He was the top man in ISIS in Syria…
According to the testimonies of US officers who worked in the prison, the administration of Camp Bucca had taken measures including the segregation of prisoners on the basis of their ideology. This, according to experts, made it possible to recruit people directly and indirectly.
Former detainees had said in documented television interviews that Bucca…was akin to an “al-Qaeda school,” where senior extremist gave lessons on explosives and suicide attacks to younger prisoners. A former prisoner named Adel Jassem Mohammed said that one of the extremists remained in the prison for two weeks only, but even so was able to recruit 25 out of 34 inmates who were there. Mohammed also said that U.S. military officials did nothing to stop the extremists from mentoring the other detainees…
No doubt, we will one day discover that many more leaders in the group had been detained in Bucca as well, which seems to have been more of a “terrorist academy” than a prison.” (“The mysterious link between the US military prison Camp Bucca and ISIS leaders“, Alakhbar English)
US foreign policy is tailored to meet US strategic objectives, which in this case are regime change, installing a US puppet in Damascus, erasing the existing borders, establishing forward-operating bases across the country, opening up vital pipeline corridors between Qatar and the Mediterranean so the western energy giants can rake in bigger profits off gas sales to the EU market, and reducing Syria to a condition of “permanent colonial dependency.” (Chomsky)
Would the United States oversee what-amounts-to a “terrorist academy” if they thought their jihadi graduates would act in a way that served US interests?
Indeed, they would. In fact, they’d probably pat themselves on the back for coming up with such a clever idea.
As our society bounces down ward, flowing this way now and that way a little later, it is difficult to pinpoint exactly what is happening until it has already overwhelmed us.
Almost everyone now knows that football stars Ray Rice and Adrian Peterson are guilty of violence within their families; a video shows Rice knocking his wife unconscious and dragging her out of an elevator. Pictures of Adrian Peterson’s ten year of son with red switch welts on his back and legs have been widely circulated. Both are being disciplined by the National Football League.
Another one that still sticks in my mind happened way back in 1988, Dimetrios Georgios Synodinos (Jimmy the Greek Snyder), a popular 12 year employee of the CBS network was fired for contending at a lunch with TV reporter Ed Hoteling that African Americans were superior athletes because during slavery they had been bred to produce superior physical characteristics.
In July 2002 Phil Donahue, following a record 26 year stint of staring in his own show, returned to TV on MSNBC. His show was an immediate success but was terminated in slightly over six months ostensibly for opposing the Iraq War.
In 2003, Pulitzer Prize winner Peter Arnett was fired by NBC for spreading factual information about the Iraq war.
In 2004, Paul Craig Roberts was banned from the mainstream media for the crime of being critical of the George W. Bush Administration and the war in Iraq.
On January 26, 2009 Juan Williams was separated from National Public Radio for making this comment about First Lady Michelle Obama, “Michelle Obama, you know, she’s got this Stokely Charmichael in a designer dress thing going. If she starts talking…her instinct is to start with this blame America, you know, I’m the victim. If that stuff starts coming out, people will go bananas and she’ll go from being the new Jackie O to being something of an albatross”.
In 2007, Don Imus, pre-eminent New York radio shock-jock, for a flippant racial reference to a Rutgers Women’s Basketball player was fired in the syrupy sweet jargon of the lily white president of CBS, Leslie Moonves, who intoned “From the outset, I believe all of us have been deeply upset and revulsed by the statements that were made on our air about the young women who represented Rutgers University in the NCAA Women’s Basketball Championship with such class, energy and talent. There has been much discussion of the effect language like this has on our young people, particularly young women of color trying to make their way in this society. That consideration has weighed most heavily on our minds as we made our decision.”
In 2010, Lebanese journalist Octavia Nasr, a 20 year employee of CNN was fired for expressing admiration for fellow Lebanese Shiite cleric Ayatollah Mohammed Hussein Fadlallah after she read his obituary.
In 2013 Paula Deen, a popular chef on the Food Channel, was summarily dismissed. A law suit by a Black employee for sexual harassment and discrimination resulted in her admission that she had used racial slurs in the past. Perfuse apologies were useless.
Crystal Dixon was dismissed from her job at the University of Toledo for expressing this bit of sound logic in a letter to the editor of a local paper. “I take great umbrage at the notion that those choosing the homosexual lifestyle are ‘civil rights victims.’ Here’s why. I cannot wake up tomorrow and not be a black woman,” she wrote. “I am genetically and biologically a black woman and very pleased to be so as my Creator intended. Daily, thousands of homosexuals make a life decision to leave the gay lifestyle evidenced by the growing population of PFOX (Parents and Friends of Ex Gays) and Exodus International just to name a few.”
In 2014, Bob Eschliman, a Christian, lost his job as editor of the Newtown Daily News, an Iowa periodical, for criticizing the Queen James Bible Website. He was fired and publically castigated for expressing his opinion.
Additional examples of politically incorrect dismissals abound.
Some of these excoriations were at least partially a result of other behavior that offended the power structure. Jimmy the Greek once punched Brent Musburger in the face for calling him stupid. They were bitter enemies. He also brought Phyllis George to tears by insulting her husband. As popular as he was he did not fit into the media social structure.
Roger Goodell is a lonely Gentile in the midst of major sport commissioners. There may be an effort to replace him by criticizing his performance. Adrian Peterson is a professing Christian Any Christian is fair game.
When Phil Donahue joined NBC in 2002 Chris Matthews fancied himself the heart of the station. Matthews did not like the Donahue Show – it drew a larger audience and pursued peace. He was pro-war and also enjoyed and ethnic advantage.
Peter Arnette was just too honest to survive in the media sea of deception.
Paul Craig Roberts is a thinker, writer, and researcher. He is one of our nation’s most talented individuals but the American Media is monolithic and does not allow deviation from its unwritten and unacknowledged laws. Criticizing war and seeking peace when they support war and death is an affront to their superior agenda.
Juan Williams may have touched on a hidden truth with a conservative type statement. Either or both are no, nos. He is Black and is working again but if a White man had made the same statement he would be banned for life.
Don Imus referred to the Rutgers lady basketball players as “nappy-headed hos”, a racial slur against a race that is sacrosanct in press and media circles. He had friends that got him his job back.
Octavia Nasr expressed admiration for an enemy of the power elite. We must love what they love and hate what they hate.
Paula Deen’s situation was similar to that of Jimmy the Greek. Though she had a popular show and was herself a success story her family was a bit crude for the elite social structure.
Homosexuality is an idol of a high order in the educational hierarchy. Even though Crystal Dixon is Black, pointing in clear logic to the absurdity of comparing civil rights for Blacks to civil rights for homosexuals was unacceptable to the meritocratic humbugs at her university. Of course her reference to and tacit support of Christian organizations is damnable all by itself.
Christians are still naïve about the hate their religion engenders in those that control our press and media. Bob Eschliman found out.
When the powerful purveyors of news and entertainment forsook the Law given them by erstwhile religion they opened the door to the tyranny of their own power. They are now the determiners of good and evil within their sizeable dominions. Morality is now an arbitrary doctrine enforced by raw power.
We might blame the leadership which owns and controls most of the world’s press and media but that leadership is being supported by millions of American Christians and validated by others who support Zionism.
Humanism is the religion of the day. The oligarchs think of themselves as a superior race endowed with authority to exert their will on the world with physical force. They will use Evangelicals who support their wars but they will not abide God’s legal structure.
Questioning the authenticity of 9/11 or the validity of the War in the Middle East is not allowed. Conspiracy talk is squelched as is criticism of Blacks, Jews, The Media, the Iraq War, homosexuality and lesbianism. Christianity can be lambasted but never extolled or promoted. Even if the dismissal is a result of other behavior the elite power structure will look for one of the key “no noes” to re-enforce fear of future infractions.
Law is what the power elite say it is. Justice is a result of abiding by the immutable Law of our Creator – it has vanished from most of the earth. War and chaos have replaced justice and peace.
“To Learn who rules over you simply find out who you are not allowed to criticize.” Attributed to Voltaire
Remember the days when an entrepreneur would perfect their whiz kid ideas in a garage and bring them to market? Did Steve Wozniak ever envision the behemoth that Apple would become and the cult camp that worships every new product that flows from their robotic coolie assembly lines? Riots Over Rotten Apple Mania describes an example of the forbidding underbelly of corporatist business model that Apple exemplifies so dramatically. Notwithstanding this record of 21th century sweat factories, do the venture vulture capitalists of Silicon Valley interject added value in the products and services they fund or do this culture of touting IPO offerings simply game a system to print money based upon imaginary dreams?
The Economic Policy Journal article, Silicon Valley Investor Joins The Corporatism March, cites Ron Conway, a Silicon Valley angel investor, who has backed many of the tech companies that we know and love.”
“Conway wrote a piece for Techcrunch where he’s calling for the other Fascism. Remember the Fascist Mussolini from Italy. It was he who said, “Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power.”
“Gone are the days when the tech community can innovate and run their businesses in spite of government. As we saw with the SOPA/PIPA debate, public policy has a direct and significant impact on startups and the investors who support them.
Whether it is regulations that stifle innovation or tax policies that hinder job creation, government has a major role in the success or failure of a startup. It is critically important for the tech community to engage in public policy.”
Silicon Valley companies are not limited to IT development, just as much as investment funding is not wholly occupied from Wall Street firms. The principle is the same wherever the money comes from, as the Rise of the “venture corporatists” explores in an account about John Doerr of Kleiner Perkins Caufield & Byers.
“None of the alternative energy sources being developed today – solar, wind, geothermal, or biomass–is close to financial sustainability, which means that the supersize returns V.C. funds depend on will require massive government subsidies, regulations, and mandates… So Doerr has launched an audacious campaign to invest millions in handpicked political candidates and influential political action committees, to push for subsidies and pro-greentech policies and require the government to purchase the kinds of fuels and technologies his startups will be marketing. Since 2000, Doerr and his wife, Ann, have contributed more than $31 million to political candidates and causes.
In essence, Doerr is helping to create the biggest new market the world has seen since the dawn of the oil industry–and asking for taxpayer dollars to do it.”
“Green” alternative energy has more to do with replicating money than producing sustainable energy. Instead of writing code for computer-generated speech, the paradigm at play buys the ambassadors of government policy, circuitously as part of the business plan.
Lachlan Markay sums up the paradox for investors and the public in The Venture Corporatists. “As long as green technology remains not simply an economic venture but a moral one, taxpayers will continue to nobly lose money as politically connected “social entrepreneurs” reap a windfall.”
Here lies the rub. What exactly is the moral imperative? The lament of Alex Shud Bayley in No, I still don’t want to work for Google makes a universal point.
“Since I’ve been out of the Silicon-Valley-centred tech industry, I’ve become increasingly convinced that it’s morally bankrupt and essentially toxic to our society. Companies like Google and Facebook — in common with most public companies — have interests that are frequently in conflict with the wellbeing of — I was going to say their customers or their users, but I’ll say “people” in general, since it’s wider than that. People who use their systems directly, people who don’t — we’re all affected by it, and although some of the outcomes are positive a disturbingly high number of them are negative: the erosion of privacy, of consumer rights, of the public domain and fair use, of meaningful connections between people and a sense of true community, of beauty and care taken in craftsmanship, of our very physical wellbeing. No amount of employee benefits or underfunded Google.org projects can counteract that.”
The notion that Silicon Valley business enterprises automatically advance civilization and improve the human condition is one of the most disturbing viewpoints that have infected the smart phone sect. Placing the blame solely on tech executives avoids the reprehensible relationship that Ron Conway is so eager to exploit.
The article, Why DC And Silicon Valley Don’t Mix Well seems to agree.
“The thing that DC should be most focused on is “fixes to previous government efforts that tried but failed to fix a problem that turned out not to need a regulatory solution.” Other industries seem to want handouts and investments and the like, but you don’t see that much in Silicon Valley.”
However, some executives excel in screwing up a once reliable service. Silicon Valley corporatist companies often fail. The next likely candidate for a downfall is Yahoo. Marissa Mayer’s tenure as CEO may be numbered according to Eric Jackson, founder and managing partner of hedge fund Ironfire Capital.
“Jackson says that since Mayer took over she has spent $2 billion buying companies and that most of those acquisitions have been for naught.
“Can you name any other acquisition Yahoo has made besides Tumblr? If not, what does that say about them?” Jackson writes at Forbes. “If these small acquisitions were mostly talent-driven as characterized by management, why was it necessary to spend, say, $30 million to hire 3 people from a dying company? Was this really the best use of shareholder capital? Yahoo should not [be] responsible for bailing out VCs from their failed investments. This isn’t TARP.”
Deplorably, many tech corporatists are mismanaged like Yahoo. Divesting a significant portion of Yahoo’s stake at the Alibaba IPO, raises a much needed current valuation, but what does this transaction do to improve the service? The Corporatists only care about tapping the rigged markets for immediate gain.