Former Treasury Secretary Timothy Geithner, a protege of Treasury Secretaries Rubin and Summers, has received his reward for continuing the Rubin-Summers-Paulson policy of supporting the “banks too big to fail” at the expense of the economy and American people. For his service to the handful of gigantic banks, whose existence attests to the fact that the Anti-Trust Act is a dead-letter law, Geithner has been appointed president and managing director of the private equity firm, Warburg Pincus and is on his way to his fortune.
A Warburg in-law financed Woodrow Wilson’s presidential campaign. Part of the reward was Wilson’s appointment of Paul Warburg to the first Federal Reserve Board. The symbiotic relationship between presidents and bankers has continued ever since. The same small clique continues to wield financial power.
Geithner’s career is illustrative. In the 1980s, Geithner worked for Kissinger Associates. In the mid to late 1990s, Geithner served as a deputy assistant Treasury secretary. Under Rubin and Summers he moved up to undersecretary of the Treasury.
From the Treasury he went to the Council on Foreign Relations and from there to the International Monetary Fund (IMF). From there he was appointed president of the Federal Reserve Bank of New York, where he worked to make banks more profitable by allowing higher ratios of debt to capital, thus contributing to the financial crisis.
Geithner arranged the sale of the failed Wall Street firm of Bear Stearns, helped with the taxpayer bailout of AIG, and rejected saving Lehman Brothers from bankruptcy in order to create the crisis atmosphere needed to more fully subordinate US economic policy to the needs of the few large banks.
Rubin, a 26-year veteran of Goldman Sachs, was rewarded by Citibank for his service to the banks while Treasury Secretary with a $50 million compensation package in 2008 and $126,000,000 between 1999 and 2009.
When a person becomes a Treasury official it is made clear that the choice is between serving the banks and becoming rich or trying to serve the public and becoming poor. Few make the latter choice.
As MIchael Hudson has informed us, the goal of the financial sector has always been to convert all income, from corporate profits to government tax revenues, to the service of debt. From the bankers standpoint, the more debt the richer the bankers. Rubin, Summers, Paulson, Geithner, and now banker Treasury Secretary Jack Lew faithfully serve this goal.
The Federal Reserve describes its policy of Quantitative Easing — the creation of new money with which the Fed purchases Treasury debt and mortgage backed securities — as a low interest rate policy in order to stimulate employment and economic growth. Economists and the financial media have parroted this cover story.
In contrast, I have exposed QE as a scheme for pumping profits into the banks and boosting their balance sheets. The real purpose of QE is to drive up the prices of the debt-related derivatives on the banks’ books, thus keeping the banks with solvent balance sheets.
Writing in the Wall Street Journal (“Confessions of a Quantitative Easer,” November 11, 2013), Andrew Huszar confirms my explanation to be the correct one. Huszar is the Federal Reserve official who implemented the policy of QE. He resigned when he realized that the real purposes of QE was to drive up the prices of the banks’ holdings of debt instruments, to provide the banks with trillions of dollars at zero cost with which to lend and speculate, and to provide the banks with “fat commissions from brokering most of the Fed’s QE transactions.” (See: www.paulcraigroberts.org )
This vast con game remains unrecognized by Congress and the public. At the IMF Research Conference on November 8, 2013, former Treasury Secretary Larry Summers presented a plan to expand the con game.
Summers says that it is not enough merely to give the banks interest free money. More should be done for the banks. Instead of being paid interest on their bank deposits, people should be penalized for keeping their money in banks instead of spending it.
To sell this new rip-off scheme, Summers has conjured up an explanation based on the crude and discredited Keynesianism of the 1940s that explained the Great Depression as a problem caused by too much savings. Instead of spending their money, people hoarded it, thus causing aggregate demand and employment to fall.
Summers says that today the problem of too much saving has reappeared. The centerpiece of his argument is “the natural interest rate,” defined as the interest rate at which full employment is established by the equality of saving with investment. If people save more than investors invest, the saved money will not find its way back into the economy, and output and employment will fall.
Summers notes that despite a zero real rate of interest, there is still substantial unemployment. In other words, not even a zero rate of interest can reduce saving to the level of investment, thus frustrating a full employment recovery. Summers concludes that the natural rate of interest has become negative and is stuck below zero.
How to fix this? The way to fix it, Summers says, is to charge people for saving money. To avoid the charges, people would spend the money, thus reducing savings to the level of investment and restoring full employment.
Summers acknowledges that the problem with his solution is that people would take their money out of banks and hoard it in cash holdings. In other words, the cash form of money provides consumers with a freedom to save that holds down consumption and prevents full employment.
Summers has a fix for this: eliminate the freedom by imposing a cashless society where the only money is electronic. As electronic money cannot be hoarded except in bank deposits, penalties can be imposed that force unproductive savings into consumption.
Summers’ scheme, of course, is a harebrained one. With governments running huge deficits, who would purchase bonds at negative interest rates? How would pension and retirement funds operate? Would they also be subject to an annual percentage confiscation?
We know that the response of consumers to the long term decline in real median family income, to the loss of jobs from labor arbitrage across national borders (jobs offshoring), to rising homelessness, to cuts in the social safety net, to the transformation of their full time jobs to part time jobs (employers’ response to Obamacare), has been to reduce their savings rate. Indeed, few have any savings at all. The US personal saving rate is currently 2 percentage points, about 30%, below the long term average. Retired people, unable to earn any interest on their savings from the Fed’s zero interest rate policy, are being forced to draw down their savings in order to pay their bills.
Moreover, it is unclear whether the savings rate is an accurate measure or merely a residual of other calculations. With so many people having to draw down their savings, I wouldn’t be surprised if an accurate measure showed the personal savings rate to be negative.
But for Summers the plight of the consumer is not the problem. The problem is the profits of the banks. Summers has the solution, and the establishment, including Paul Krugman, is applauding it. Once the economy officially turns down again, watch out.
This column first appeared as a Trend Alert, Trends Research Institute
Source: Paul Craig Roberts
A Flimsy Piece of Worn Out Script…
“If the dollar does indeed lose its role as leading international currency, the cost to the United States would probably extend beyond the simple loss of seigniorage, narrowly defined. We would lose the privilege of playing banker to the world, accepting short-term deposits at low interest rates in return for long-term investments at high average rates of return. When combined with other political developments, it might even spell the end of economic and political hegemony.”
– Economist Menzie Chinn, “Will the Dollar Remain the World’s Reserve Currency in Five Years?”, CounterPunch 2009
Barack Obama’s economic recovery has been a complete bust. Unemployment is high, the economy is barely growing, and inequality is greater than anytime on record. On top of that, inflation has dropped to 1.2 percent, private sector hiring continues to disappoint and, according to Gallup’s “Economic Confidence” survey, households and consumers remain “deeply negative”. More tellingly, the Federal Reserve’s emergency program dubbed QE– which was designed to mitigate the fallout from the 2008 stock market crash and subsequent recession–is still operating at full-throttle five years after Lehman Brothers defaulted. This is inexcusable. It’s an admission that US policymakers have no idea what they’re doing.
Why is it so hard to get the economy up and running? Everyone knows that spending generates growth, so if the private sector (consumers and businesses) can’t spend the public sector (the government) must spend. That’s how sluggish economies shake off recession, through growth.
Spend, spend, spend and spend some more. That’s how you grow your way out of a slump. There’s nothing new or original about this. This isn’t some cutting-edge, state-of-the-art theory. It’s settled science. Economics 101.
So is it any wonder why the rest of the world is losing confidence in the US? Is it any wonder why China and Japan have slashed their purchases of US debt? Get a load of this from Reuters:
“China and Japan led an exodus from U.S. Treasuries in June after the first signals the U.S. central bank was preparing to wind back its stimulus, with data showing they accounted for almost all of a record $40.8 billion of net foreign selling of Treasuries….
China, the largest foreign creditor, reduced its Treasury holdings to $1.2758 trillion, and Japan trimmed its holdings for a third straight month to $1.0834 trillion. Combined, they accounted for about $40 billion in net Treasury outflows.” (“China, Japan lead record outflow from Treasuries in June”, Reuters)
While things have improved since August, the selloff is both ominous and revealing. Foreign trading partners are losing confidence in US stewardship because of policymakers erratic behavior. Here’s how former Fed chairman Paul Volcker summed it up:
“We have lost a coherent successful governing model to be emulated by the rest of the world. Instead, we’re faced with broken financial markets, underperformance of our economy and a fractious political climate.”
Naturally, this loss of confidence is going to hurt the dollar vis a vis its position as the world’s reserve currency. But don’t kid yourself, China and Japan want to be the top-dog either. They’re fine with the way things are right now. The problem is, it’s looking more and more like the US is not up-to-the-task anymore given the irresponsible way it conducts its business. And we’re not talking about the government shutdown either, although that circus sideshow certainly lifted a few eyebrows in capitals around the world. Foreign leaders have come to expect these tedious outbursts from the lunatic fringe in Congress. But, the fact is, the government shutdown fiasco had very little effect on the bond market. The benchmark 10-year US Treasury shrugged off congress’s screwball antics with a wave of the hand. No big deal. Not so the talk of “tapering” by the Fed, which sent 10-year yields soaring more than 100 basis points to 3 percent in less that a month. Tapering put the fear of god in everyone. The sudden jolt to mortgage rates was enough to put the kibosh on new and existing homes sales putting a swift end to Bernanke’s dream of reflating the housing bubble. The rising long-term rates threatened to push the economy back into recession and wipe out five years of zero rates and pump priming in the blink of an eye. That’s why China and Co. started to jettison USTs. They figured if the Fed was going to scale back its asset purchases, rates would rise, and they’d be left with a whole shedload of US paper that would be worth less than what they paid for it. So they got out while the gettin’ was good.
So don’t believe the media’s fairytale that Bernanke postponed tapering because the economy still looked weak. That’s nonsense. It was the selloff in USTs that slammed on the brakes. The Fed actually wants to reduce its purchases because there are humongous bubbles emerging in financial assets everywhere. But how to do it without triggering another crash, that’s the question. The Fed has distorted prices across the board, which is why the main stock indices are climbing to new highs every day on the back of an economy that has less people in the workforce than it did 10 years ago. What a joke. And people wonder why foreign lenders are getting nervous?
What China wants from the United States is simple. They want proof that the US hasn’t lost its mind. That’s all. “Just show us that you still know how to fix the economy and run the system.” Is that too much to ask?
Unfortunately, Washington doesn’t think it needs to answer to anyone. We’re Numero Uno, le grand fromage. “What we say goes!”
Okay. But the only thing that’s going is the US’s reputation, it’s economic dominance, it’s behemoth debt market, and its reserve currency status. Not because the world is rebelling, but because the US is imploding. “Stupid” is a disease that has spread to every part of the body politic. The country is run by crackpots who implement counterproductive policies that weaken demand, boost unemployment, shrink growth leave the rest of the world scratching their heads in bewilderment. This is from Bloomberg:
“While government debt was a haven as the U.S. endured the worst recession in seven decades, primary dealers such as Barclays Plc (BARC) and Goldman Sachs Group Inc. say the gains this month show the Fed’s $85 billion of monthly bond purchases are masking the risk of owning fixed-income securities as the recovery in America takes hold.
“Treasuries are just not worth the risk,” Thomas Higgins, the Boston-based global macro strategist at Standish Mellon Asset Management Co., which oversees $167 billion of fixed-income investments, said in a telephone interview on Oct. 23.” (Bloomberg)
Not worth the risk, indeed, which is why the dollar is getting pummeled mercilessly at the same time. This is from Reuters:
“The dollar fell towards a nine-month low against a basket of currencies on Monday, with more investors selling on growing confidence the Federal Reserve will keep policy accommodative….
Most expect the central bank to delay withdrawing stimulus until March 2014…. The longer the Fed keeps policy accommodative, the more U.S. yields stay anchored, making the dollar less attractive to hold.” (Reuters)
So the dollar isn’t looking too hot either, is it, which is why China and Japan have started to reconsider their holdings. This is from Businessweek:
“U.S. government debt has already lost some of its appeal among foreign investors. They were net sellers of Treasuries for five-straight months ended August, disposing of $133 billion in that span, last week’s Treasury data showed.
The streak is the longest since 2001 as China, the largest overseas U.S. creditor, reduced its holdings to $1.268 trillion, the least since February….With the economy recovering from the depths of that recession, Treasuries may be more vulnerable to a selloff this time.” (“Treasuries Risk Shown as Fed Distorts Correlation to Stocks”, Businessweek)
Of course, there’s going to be a selloff. Why wouldn’t there be? And probably a panic too to boot.
Look, it’s simple: If the biggest buyer of US Treasuries (The Fed) signals that its either going to scale back its purchases or reduce its stockpile of USTs, then what’s going to happen?
Well, the supply of USTs will increase which will lower prices on US debt and push up rates. Supply and demand, right?
So, if the other participants in the market (aka China and Japan) think the Fed is about to taper, they’re going to try to sell before other investors race for the exits.
The question is: What’s that going to do to the dollar?
And the answer is: The dollar going to get hammered.
The US gov going to have to borrow at higher rates which could tip the economy back into recession. Also, the US could lose the ”exorbitant privilege” of exchanging colored pieces of paper for valuable goods and services produced by human sweat and toil. Isn’t that what’s really at stake?
Of course, it is. The entire imperial system is balanced on a flimsy piece of worn scrip with a dead president’s face on it. All that could change in the blink of an eye if people lose faith in US stewardship of the system.
But, what exactly would the US have to do for foreign countries to ditch the dollar? Here’s how economist and author Menzie Chinn answered that question in an interview in CounterPunch in 2009:
“If the US administration were to pursue highly irresponsible policies, such as massive deficit spending for many years so as to push output above full employment levels, or if the Fed were to delay too long an ending to quantitative easing, then the dollar could lose its position.” (“Will the Dollar Remain the World’s Reserve Currency in Five Years?” An Interview With Economist Menzie Chinn, Counterpunch)
Funny how Chinn anticipated the problems with winding down QE way back in 2009, isn’t it? His comments sound downright prophetic given Wall Street’s strong reaction.
But we keep hearing that China is stuck with the US and has to keep buying Treasuries or its currency will rise and kill its exports. Is that true or will China eventually split with the dollar?
Menzie Chinn again:
“It is true that each Asian central bank stands to lose considerably, in the value of its current holdings, if dollar sales precipitate a dollar crash. But we agree with Barry Eichengreen that each individual participant will realize that it stands to lose more if it holds pat than if it joins the run, when it comes to that. Thus if the United States is relying on the economic interests of other countries, it cannot count on being bailed out indefinitely.” (Counterpunch)
Well, that sounds a bit worrisome. But maybe China won’t notice that we’re governed by morons who’ve forgotten how to fix the economy or generate demand for their products. Any chance of that?
No chance at all, in fact, China already has already started its transition away from the dollar. Here’s the scoop from former chief economist for Morgan Stanley Asia, Stephen S. Roach:
“China has made a conscious strategic decision to alter its growth strategy. Its 12th Five-Year Plan, enacted in March 2011, lays out a broad framework for a more balanced growth model that relies increasingly on domestic private consumption. These plans are about to be put into action….
Rebalancing is China’s only option…..With rebalancing will come a decline in China’s surplus saving, much slower accumulation of foreign-exchange reserves, and a concomitant reduction in its seemingly voracious demand for dollar-denominated assets. Curtailing purchases of US Treasuries is a perfectly logical outgrowth of this process…..
For China, this is not a power race. It should be seen as more of a conscious strategy to do what is right for China as it confronts its own daunting growth and development imperatives in the coming years.” (“China gets a wake-up call from US”, Stephen S. Roach, Project Syndicate via bangkokpost.com)
In other words, “No hard feelings, Uncle Sam. We just don’t need your fishwrap currency anymore.”
No matter how you cut it, the dollar is going to be facing stiff headwinds in the days ahead. If Roach’s analysis is correct, we can expect a gradual move away from the buck leading to a persistent erosion of US economic and political power.
The end of dollar hegemony means America’s “unipolar moment” may be drawing to a close.
The infamous Trilateral Commission still exists. Many people think the TC, created in 1973 by David Rockefeller, is a relic of an older time. Think again.
Patrick Wood, author of Trilaterals Over Washington, points out there are only 87 members of the Trilateral Commission who live in America. Obama appointed elevenof them to posts in his administration.
Keep in mind that the original stated goal of the TC was to create “a new international economic order.” Knowing that you have to break eggs to make an omelette, consider how the following TC members, in key Obama posts, can help engender further national chaos; erase our sovereign national borders; and install binding international agreements that will envelop our economy and money in a deeper global collective: a new world order:
- Tim Geithner, Treasury Secretary;
- James Jones, National Security Advisor;
- Paul Volker, Chairman, Economic Recovery Committee;
- Dennis Blair, Director of National Intelligence.
In the run-up to his inauguration after the 2008 presidential election, Obama was tutored by the co-founder of the Trilateral Commission, Zbigniew Brzezinski.
In Europe, the financially embattled nations of Greece and Italy brought in Lucas Papademos and Mario Monti as prime ministers. Both men are Trilateral members, and Monti is the former European chairman of the Trilateral Commission.
In the US, since 1973, author Wood counts eight out of 10 US Trade Representative appointments, and six out of eight World Bank presidencies, as American Trilateral members.
Zbigniew Brzezinski wrote, four years before birthing the TC with his godfather, David Rockefeller:
“[The] nation state as a fundamental unit of man’s organized life has ceased to be the principal creative force. International banks and multinational corporations are acting and planning in terms that are far in advance of the political concepts of the nation state.”
Several other noteworthy Trilateral members: George HW Bush, Bill Clinton, Dick Cheney, Al Gore. The first three men helped sink the US further into debt by fomenting wars abroad; and Gore’s cap and trade blueprint would destroy industrial economies, while vastly increasing the numbers of people in Third World countries who have no access to modern sources of energy.
Does all this offer a clue as to why the US economy has failed to recover from the Wall Street debacle of 2008, why the federal bailout was a handout to super-rich criminals, and why Obama took actions which prevented a recovery?
A closer look at Tim Geithner’s circle of economic advisers reveals the chilling Trilateral effect: Paul Volker; Alan Greenspan; E. Gerald Corrigan (director, Goldman Sachs); and Peter G Peterson (former CEO, Lehman Brothers, former chairman of the Council on Foreign Relations). These men are all Trilateral members.
How many foxes in the hen house do we need, before we realize their Trilateral agenda is controlling the direction of our economy?
The TC has no interest in building up the American economy. They want to torpedo it, as part of the end-game of creating a new international currency, ushering in a de facto Globalist management system for the whole planet.
Any doubt on the question of TC goals is answered by David Rockefeller himself, the founder of the TC, in his Memoirs (2003):
“Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as ‘internationalists’ and of conspiring with others around the world to build a more integrated global political and economic structure—one world, if you will. If that is the charge, I stand guilty, and I am proud of it.”
Even in what many people mistakenly think of as the TC’s heyday, the 1970s, there were few who realized its overarching power.
Here is a close-up snap shot of a remarkable moment from out of the past. It’s a through-the-looking-glass secret—in the form of a conversation between a reporter, Jeremiah Novak, and two Trilateral Commission members, Karl Kaiser and Richard Cooper. The interview took place in 1978. It concerned the issue of who exactly, during President Carter’s administration, was formulating US economic and political policy.
The careless and off-hand attitude of Trilateralists Kaiser and Cooper is astonishing. It’s as if they’re saying, “What we’re revealing is already out in the open, it’s too late to do anything about it, why are you so worked up, we’ve already won…”
NOVAK (the reporter): Is it true that a private [Trilateral committee] led by Henry Owen of the US and made up of [Trilateral] representatives of the US, UK, West Germany, Japan, France and the EEC is coordinating the economic and political policies of the Trilateral countries [which would include the US]?
COOPER: Yes, they have met three times.
NOVAK: Yet, in your recent paper you state that this committee should remain informal because to formalize ‘this function might well prove offensive to some of the Trilateral and other countries which do not take part.’ Who are you afraid of?
KAISER: Many countries in Europe would resent the dominant role that West Germany plays at these [Trilateral] meetings.
COOPER: Many people still live in a world of separate nations, and they would resent such coordination [of policy].
NOVAK: But this [Trilateral] committee is essential to your whole policy. How can you keep it a secret or fail to try to get popular support [for its decisions on how Trilateral member nations will conduct their economic and political policies]?
COOPER: Well, I guess it’s the press’ job to publicize it.
NOVAK: Yes, but why doesn’t President Carter come out with it and tell the American people that [US] economic and political power is being coordinated by a [Trilateral] committee made up of Henry Owen and six others?After all, if [US] policy is being made on a multinational level, the people should know.
COOPER: President Carter and Secretary of State Vance have constantly alluded to this in their speeches.
KAISER: It just hasn’t become an issue.
Source: Trilateralism: The Trilateral Commission and Elite Planning for World Management, ed. by Holly Sklar, 1980. South End Press, Boston. Pages 192-3.
Of course, although Kaiser and Cooper claimed everything being manipulated by the Trilateral Commission committee was already out in the open, it wasn’t.
Their interview slipped under the mainstream media radar, which is to say, it was ignored and buried. It didn’t become a scandal on the level of, say, Watergate, although its essence was far larger than Watergate.
US economic and political policy run by a committee of the Trilateral Commission—the Commission had been been created in 1973 as an “informal discussion group” by David Rockefeller and his sidekick, Zbigniew Brzezinski, who would become Jimmy Carter’s National Security Advisor.
When Carter won the presidential election, his aide, Hamilton Jordan, said that if after the inauguration, Cy Vance and Brzezinski came on board as secretary of state and national security adviser, “We’ve lost. And I’ll quit.” Lost — because both men were powerful members of the Trilateral Commission and their appointment to key positions would signal a surrender of White House control to the Commission.
Vance and Brzezinski were appointed secretary of state and national security adviser, as Jordan feared. But he didn’t quit. He became Carter’s chief of staff.
Now consider the vast propaganda efforts of the past 40 years, on so many levels, to install the idea that all nations and peoples of the world are a single Collective.
From a very high level of political and economic power, this propaganda op has had the objective of grooming the population for a planet that is one coagulated mass, run and managed by one force. A central engine of that force is the Trilateral Commission.
Only a week ago, the consensus among most mainstream economic analysts and even some alternative analysts was that a government shutdown was not going to happen. The Republicans would fold in the shadow of President Barack Obama’s overwhelming drive for socialization, spending would continue to grow unabated, and the debt ceiling would be vaulted yet again to feed the bureaucratic machine with more fiat. Today, there is no consensus, very few people continue to be so blithely self-assured and even the mainstream is beginning to wonder if a much bigger game is afoot here.
As I discussed before the shutdown in a recent article, it is important to take all facets of this situation seriously, or risk being bitten by hidden dangers while entranced in one’s own arrogant cynicism.
One rule I try to follow whenever possible is to always be open to possibilities beyond the expected and never assume that today’s dynamic will be the same as tomorrow’s dynamic. Even the Liberty Movement can at times be susceptible to group think. In a world of staggering political and economic manipulation, one has to grasp hold of certain fundamental truths in order to survive. In my time working within the liberty movement and outside of the mainstream, these are a few of the cold, hard truths that have served me well.
It’s Always About Globalization
Every action the elites within our government take pushes the U.S. closer to globalism and away from sovereignty. We may not always see the bigger picture in the heat of the moment, but a look back tells us much. Seemingly simple changes in financial legislation render devastating fiscal shifts a decade later (as with the progressive erasure of Glass-Steagall). Shocking disaster events that appear random suddenly open doors for totalitarian legislation that had been prepared years in advance. Wars end with further calls for world “unification.” Nothing, and I mean nothing, happens within government that does not revolve around the desire of establishment oligarchy to achieve total global economic, political and social control.
The Bankers Did It
Central banks and international banks are the bedrock of globalization, and all greater political decisions eventually stand on this bedrock. One need only examine the cabinets of the past four U.S. Presidents; there you will find a regular carnival freak show of banking elites who would go on to revolve in and out of government and back into the international financial sector. Private central banks like the Federal Reserve dominate the very currency (and thus the economy) of most nations on the planet. Most wars and man-made disasters of the past several centuries have served only to further enrich and empower the merchant class, and the same holds true today. If you want to understand why a certain calamity has occurred, first look to who benefited most. Invariably, you will find the banker class smiling when all is said and done.
America’s Two-Party System Is Actually A One-Party System
If you do not yet understand that the elite of the Republican Party and the Democratic Party share the same foundational philosophy of globalism, then you will NEVER understand why our government does what it does. Public battles of words and legislation are nothing but rhetorical cinema. Ultimately, the goals of neocons and neolibs revolve around the centralization of power. All legislation is used either to further centralization or as a smokescreen to confuse the public while centralization is taking place. When has the leadership of either party, for instance, ever demanded a full audit of the Federal Reserve? When has the leadership of either party ever attempted to dismantle the Patriot Act or the despotic provisions of the National Defense Authorization Act or the President’s openly admitted assassination list? They may seem to disagree violently at times, but do not be fooled. The disagreement is likely just another means to gain more dominance.
The Goal Is To Destroy The American Economy
What you believe to be political blunders are often actually calculated and engineered events. What you believe to be chaotic disasters of coincidence are often actually deliberate acts of attrition warfare against the common people disguised as random catastrophe. Those you believe to be heroes are actually villains in friendly masks. Those you are told to be villains are actually good men and women who refused to be enslaved by the system. That which you see and hear is never exactly as it appears.
Nearly every concrete action our government and central bank have taken in the past several decades has led to the further erosion of the American economy. If this is all just the consequence of “stupidity” or “childish greed,” you would think our so-called leadership would have at least made a few good decisions by mistake; but they are incredibly adept at choosing all the wrong paths.
The reality is that collapses on the scale we are now witnessing in America rarely happen by accident.
The destruction of Glass-Steagall was a carefully crafted coup. The Federal Reserve deliberately and artificially lowered interest rates in order to allow banks to generate massive toxic debt through the derivatives markets. The Securities and Exchange Commission did little to nothing to stop the spread of cancerous mortgage instruments and ignored numerous calls for investigation. Ratings agencies like Moody’s and Fitch examined all of these toxic assets, knowing exactly what they were, and rated them AAA anyway. And banks like Goldman Sachs, knowing that the market was a sham, sold these bad assets around the world and then secretly bet AGAINST them later. Either this is economic warfare implemented with precision, or it’s all a string of coincidental blunders. I don’t believe in such coincidences.
America is being destroyed by design to make way for a new global system administered by the International Monetary Fund and the World Bank, as well as a new global currency tied to the IMF’s Special Drawing Rights.
If you are able to accept this, the confusion surrounding events like the government shutdown and debt ceiling debate withers, and everything becomes clear. With that clarity in mind, we can now examine the possible outcomes of the shutdown theater.
Republicans Surrender At The Last Minute
Of course, since both parties are essentially one party, the idea of “brinksmanship” on the part of either is absurd. The GOP will surrender, or “stand fast,” because its serves the interests of the globalist establishment. There is no political battle here, only the empty chest-beating of a staged wrestling match.
Bets on a last-minute Republican reversal were in the majority for the past week of the shutdown, but that is slowly changing — and for good reason. Obama has stated that the Affordable Care Act is off the table in negotiations, while Republicans like Ted Cruz and John Boehner are now stating with surprising candor that debt default is on the table if Obama refuses to compromise.
Gee, it would seem we are at an impasse.
In the meantime, the GOP is also moving to wrap the debt ceiling debate into the shutdown fight, making a “diplomatic compromise” even less likely to make sense to the public. (Those who argued that the shutdown and the debt ceiling were two entirely separate issued should accept this reality and move on.)
If I were writing this bit of fiction, I would say I was writing myself into a corner and that a last-minute Republican white flag would be illogical to my audience. That said, not all stories are well-written stories, so a Republican rollover remains an option for the time being. The primary reason I can see for the establishment to instruct the GOP to retreat would be to set the stage for a new stimulus event, like a war, which still leaves the U.S. dollar on track to lose its world reserve status — just not as fast a track.
Default Occurs By Winter
This plot twist makes far more sense to me given the way our story has progressed so far. Why? Because it provides perfect cover for an economic collapse that was going to occur anyway, except in this version the banking elite avoid all blame.
Just look at all the angry rhetoric being thrown around in the mainstream media; red team versus blue team has returned as the pervasive American sitcom.
Conservatives blame liberals and Obama. Liberals blame conservatives and the Tea Party. We’re all too happy to blame each other. Certainly, both elements of our government share responsibility for any debt default or subsequent collapse. But who started this avalanche to begin with? What about the Federal Reserve? What about Goldman Sachs, JPMorgan, Citigroup, etc.? What about the globalists?
Debt default is no small matter. Such a disaster would indeed fuel a flight from U.S. Treasuries by foreign investors and eventually lead to the complete abandonment of the greenback as the world reserve standard. Austerity measures would be implemented at break-neck speed. Cuts to entitlement programs, pensions, State funding, etc. will hit the American people like a freight train.
The way in which the MSM is already painting “Tea Party” conservative as saboteurs should a default occur is actually a very practical strategy. Not only do the elites get their economic collapse, but they manipulate the general public to believe that Constitutional conservatives, their mortal enemies, were the CAUSE of the pain, rather than the banks.
Order From Chaos
Should the establishment decide this is the moment to pull the plug on our financial structure, expect some rather insane-sounding solutions to be presented as rational alternatives. When Obama was asked by reporters if he considered the 14th Amendment as an option to end the debt ceiling debate, Obama did not rule out the idea.
This should raise some eyebrows. By the 14th Amendment I can only surmise that they mean Section 4, which states:
The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.
Some people, including CNBC’s Jim Cramer, think that this gives the President the power to raise the debt ceiling regardless of what Congress decides.
And Obama doesn’t appear to be dismissing the notion either. However, Section 5 of the 14thAmendment says:
The Congress shall have power to enforce, by appropriate legislation, the provisions of this article.
Nowhere in Section 5 does it say that the President has the power to enforce the provisions of the 14th Amendment, but this may not stop the White House from twisting the law to insinuate more expansive controls.
Beyond the 14th Amendment, there are numerous executive orders and continuity of government programs that the White House could cite as authority to implement national emergency standards. This would probably start as a kind of “soft” martial law, and then grow from there. Each action will be rationalized as necessary for the greater good of the country, but will serve only the interests of the establishment oligarchy.
On the Republican side, there is another disturbing development that may be presented as a solution in the face of crisis — namely, the idea of instituting a Constitutional convention.
A Constitutional convention is essentially a complete rewriting of the document (which they call “amending”) in the name of rebooting a government that has strayed too far from the wishes of the people. The concept is being promoted avidly by certain neocon talking heads and scholars, even on the FOX News circuit.
It sounds very noble on the surface, and neocons use very pretty language to candy coat the idea for legitimate Constitutionalists; but it is truly the most foolish action our country could take, opening the door to a complete erasure of Bill of Rights protections while offering no assurances that any meaningful provisions will be respected or afforded by the Federal government. The people are given the illusion of potential redress when in reality a Con-Con produces only more centralized theater for the masses. If the liberty movement is suckered into a Constitutional convention, we will have been lured into writing our own destruction.
Another scenario could involve the Federal Reserve moving to take what they often call “extraordinary measures”. The Fed, being a private bank, may use the shutdown as an opportunity to paint itself as an economic “hero” (as unbelievable as that may sound), by instituting stimulus measures to the Federal Government regardless of Congressional or presidential impasse. Given enough public desperation in the midst of default, the Fed may attempt to assert unprecedented financial authority in the name of “saving the country from it’s own government”. The bankers then establish their role as the wise saviors and high priests of the fiscal universe, and cement private dominance over American political decisions as “acceptable” in the minds of the citizenry.
The most dangerous solution that will inevitably be paraded for the public will be a petition for aid from the IMF. The IMF has a long history of loansharking to indebted nations and then subsuming them and their natural resources in the process. The ignorant illusion that the United States is the sole power behind the IMF will be exposed all too late when a defaulting American Treasury is told to collateralize infrastructure to pay off creditors, while the dollar is bled completely dry and absorbed by the IMF’s Special Drawing Rights basket currency.
Whether default occurs or is avoided, watch vigilantly over the next few weeks. Do not blink. Do not be conned, and do not let fear or bias blind you to the bigger picture. The shutdown could amount to nothing immediate, or it could amount to everything we have warned about for the past five years. I personally believe the month of October may be a major turning point in America’s history. Whether it be for good or ill depends on how mentally and physically prepared we are.
Source: Brandon Smith | Alt-Market
A talk at Rhodes Forum, October 5, 2013…
First, the good news. American hegemony is over. The bully has been subdued. We cleared the Cape of Good Hope, symbolically speaking, in September 2013. With the Syrian crisis, the world has passed a key forking of modern history. It was touch and go, just as risky as the Cuban missile crisis of 1962. The chances for total war were high, as the steely wills of America and Eurasia had crossed in the Eastern Mediterranean. It will take some time until the realisation of what we’ve gone through seeps in: it is normal for events of such magnitude. The turmoil in the US, from the mad car chase in the DC to the shutdown of federal government and possible debt default, are the direct consequences of this event.
Remember the Berlin Wall? When it went down, I was in Moscow, writing for Haaretz. I went to a press-conference with Politburo members in the President Hotel, and asked them whether they concurred that the end of the USSR and world socialist system was nigh. I was laughed at; it was an embarrassing occasion. Oh no, they said. Socialism will blossom, as the result of the Wall’s fall. The USSR went down two years later. Now our memory has compacted those years into a brief sequence, but in reality, it took some time.
The most dramatic event of September 2013 was the high-noon stand-off near the Levantine shore, with five US destroyers pointing their Tomahawks towards Damascus and facing them – the Russian flotilla of eleven ships led by the carrier-killer Missile Cruiser Moskva and supported by Chinese warships. Apparently, two missiles were launched towards the Syrian coast, and both failed to reach their destination.
It was claimed by a Lebanese newspaper quoting diplomatic sources that the missiles were launched from a NATO air base in Spain and they were shot down by the Russian ship-based sea-to-air defence system. Another explanation proposed by the Asia Times says the Russians employed their cheap and powerful GPS jammers to render the expensive Tomahawks helpless, by disorienting them and causing them to fail. Yet another version attributed the launch to the Israelis, whether they were trying to jump-start the shoot-out or just observed the clouds, as they claim.
Whatever the reason, after this strange incident, the pending shoot-out did not commence, as President Obama stood down and holstered his guns. This was preceded by an unexpected vote in the British Parliament. This venerable body declined the honour of joining the attack proposed by the US. This was the first time in two hundred years that the British parliament voted down a sensible proposition to start a war; usually the Brits can’t resist the temptation.
After that, President Obama decided to pass the hot potato to the Congress. He was unwilling to unleash Armageddon on his own. Thus the name of action was lost. Congress did not want to go to war with unpredictable consequences. Obama tried to browbeat Putin at the 20G meeting in St Petersburg, and failed. The Russian proposal to remove Syrian chemical weaponry allowed President Obama to save face. This misadventure put paid to American hegemony , supremacy and exceptionalism. Manifest Destiny was over. We all learned that from Hollywood flics: the hero never stands down; he draws and shoots! If he holsters his guns, he is not a hero: he’s chickened out.
Afterwards, things began to unravel fast. The US President had a chat with the new president of Iran, to the chagrin of Tel Aviv. The Free Syrian Army rebels decided to talk to Assad after two years of fighting him, and their delegation arrived in Damascus, leaving the Islamic extremists high and dry. Their supporter Qatar is collapsing overextended. The shutdown of their government and possible debt default gave the Americans something real to worry about. With the end of US hegemony, the days of the dollar as the world reserve currency are numbered.
World War III almost occurred as the banksters wished it. They have too many debts, including the unsustainable foreign debt of the US. If those Tomahawks had flown, the banksters could have claimed Force Majeure and disavow the debt. Millions of people would die, but billions of dollars would be safe in the vaults of JP Morgan and Goldman Sachs. In September, the world crossed this bifurcation point safely, as President Obama refused to take the fall for the banksters. Perhaps he deserved his Nobel peace prize, after all.
The near future is full of troubles but none are fatal. The US will lose its emission rights as a source of income. The US dollar will cease to serve as the world reserve currency though it will remain the North American currency. Other parts of the world will resort to their euro, yuan, rouble, bolivar, or dinar. The US military expenditure will have to be slashed to normal, and this elimination of overseas bases and weaponry will allow the US population to make the transition rather painlessly. Nobody wants to go after America; the world just got tired of them riding shotgun all over the place. The US will have to find new employment for so many bankers, jailers, soldiers, even politicians.
As I stayed in Moscow during the crisis, I observed these developments as they were seen by Russians. Putin and Russia have been relentlessly hard-pressed for quite a while.
- The US supported and subsidised Russia’s liberal and nationalist opposition; the national elections in Russia were presented as one big fraud. The Russian government was delegitimised to some extent.
- The Magnitsky Act of the US Congress authorised the US authorities to arrest and seize the assets of any Russian they deem is up to no good, without a recourse to a court.
- Some Russian state assets were seized in Cyprus where the banks were in trouble.
- The US encouraged Pussy Riot, gay parades etc. in Moscow, in order to promote an image of Putin the dictator, enemy of freedom and gay-hater in the Western and Russian oligarch-owned media.
- Russian support for Syria was criticised, ridiculed and presented as a brutal act devoid of humanity. At the same time, Western media pundits expressed certainty that Russia would give up on Syria.
As I wrote previously, Russia had no intention to surrender Syria, for a number of good reasons: it was an ally; the Syrian Orthodox Christians trusted Russia; geopolitically the war was getting too close to Russian borders. But the main reason was Russia’s annoyance with American high-handedness. The Russians felt that such important decisions should be taken by the international community, meaning the UN Security Council. They did not appreciate the US assuming the role of world arbiter.
In the 1990s, Russia was very weak, and could not effectively object, but they felt bitter when Yugoslavia was bombed and NATO troops moved eastwards breaking the US promise to Gorbachev. The Libyan tragedy was another crucial point. That unhappy country was bombed by NATO, and eventually disintegrated. From the most prosperous African state it was converted into most miserable. Russian presence in Libya was rather limited, but still, Russia lost some investment there. Russia abstained in the vote on Libya as this was the position of the then Russian president Dmitry Medvedev who believed in playing ball with the West. In no way was Putin ready to abandon Syria to the same fate.
The Russian rebellion against the US hegemony began in June, when the Aeroflot flight from Beijing carrying Ed Snowden landed in Moscow. Americans pushed every button they could think of to get him back. They activated the full spectre of their agents in Russia. Only a few voices, including that of your truly, called on Russia to provide Snowden with safe refuge, but our voices prevailed. Despite the US pressure, Snowden was granted asylum.
The next step was the Syrian escalation. I do not want to go into the details of the alleged chemical attack. In the Russian view, there was not and could not be any reason for the US to act unilaterally in Syria or anywhere else. In a way, the Russians have restored the Law of Nations to its old revered place. The world has become a better and safer place.
None of this could’ve been achieved without the support of China. The Asian giant considers Russia its “elder sister” and relies upon her ability to deal with the round-eyes. The Chinese, in their quiet and unassuming way, played along with Putin. They passed Snowden to Moscow. They vetoed anti-Syrian drafts in the UNSC, and sent their warships to the Med. That is why Putin stood the ground not only for Russia, but for the whole mass of Eurasia.
There were many exciting and thrilling moments in the Syrian saga, enough to fill volumes. An early attempt to subdue Putin at G8 meeting in Ireland was one of them. Putin was about to meet with the united front of the West, but he managed to turn some of them to his side, and he sowed the seeds of doubt in others’ hearts by reminding them of the Syrian rebel manflesh-eating chieftains.
The proposal to eliminate Syrian chemical weapons was deftly introduced; the UNSC resolution blocked the possibility of attacking Syria under cover of Chapter Seven. Miraculously, the Russians won in this mighty tug-of-war. The alternative was dire: Syria would be destroyed as Libya was; a subsequent Israeli-American attack on Iran was unavoidable; Oriental Christianity would lose its cradle; Europe would be flooded by millions of refugees; Russia would be proven irrelevant, all talk and no action, as important as Bolivia, whose President’s plane can be grounded and searched at will. Unable to defend its allies, unable to stand its ground, Russia would’ve been left with a ‘moral victory’, a euphemism for defeat. Everything Putin has worked for in 13 years at the helm would’ve been lost; Russia would be back to where it was in 1999, when Belgrade was bombed by Clinton.
The acme of this confrontation was reached in the Obama-Putin exchange on exceptionalism. The two men were not buddies to start with. Putin was annoyed by what he perceived as Obama’s insincerity and hypocrisy. A man who climbed from the gutter to the very top, Putin cherishes his ability to talk frankly with people of all walks of life. His frank talk can be shockingly brutal. When he was heckled by a French journalist regarding treatment of Chechen separatists, he replied:
“the Muslim extremists (takfiris) are enemies of Christians, of atheists, and even of Muslims because they believe that traditional Islam is hostile to the goals that they set themselves. And if you want to become an Islamic radical and are ready to be circumcised, I invite you to Moscow. We are a multi-faith country and we have experts who can do it. And I would advise them to carry out that operation in such a way that nothing would grow in that place again”.
Another example of his shockingly candid talk was given at Valdai as he replied to BBC’s Bridget Kendall. She asked: did the threat of US military strikes actually play a rather useful role in Syria’s agreeing to have its weapons placed under control?
Putin replied: Syria got itself chemical weapons as an alternative to Israel’s nuclear arsenal. He called for the disarmament of Israel and invoked the name of Mordecai Vanunu as an example of an Israeli scientist who opposes nuclear weapons. (My interview with Vanunu had been recently published in the largest Russian daily paper, and it gained some notice).
Putin tried to talk frankly to Obama. We know of their exchange from a leaked record of the Putin-Netanyahu confidential conversation. Putin called the American and asked him: what’s your point in Syria? Obama replied: I am worried that Assad’s regime does not observe human rights. Putin almost puked from the sheer hypocrisy of this answer. He understood it as Obama’s refusal to talk with him “on eye level”.
In the aftermath of the Syrian stand-off, Obama appealed to the people of the world in the name of American exceptionalism. The United States’ policy is “what makes America different. It’s what makes us exceptional”, he said. Putin responded: “It is extremely dangerous to encourage people to see themselves as exceptional. We are all different, but when we ask for the Lord’s blessings, we must not forget that God created us equal.” This was not only an ideological, but theological contradistinction.
As I expounded at length elsewhere, the US is built on the Judaic theology of exceptionalism, of being Chosen. It is the country of Old Testament. This is the deeper reason for the US and Israel’s special relationship. Europe is going through a stage of apostasy and rejection of Christ, while Russia is deeply Christian. Its churches are full, they bless one other with Christmas and Easter blessings, instead of neutral “seasons”. Russia is a New Testament country. And rejection of exceptionalism, of chosenness is the underlying tenet of Christianity.
For this reason, while organised US Jewry supported the war, condemned Assad and called for US intervention, the Jewish community of Russia, quite numerous, wealthy and influential one, did not support the Syrian rebels but rather stood by Putin’s effort to preserve peace in Syria. Ditto Iran, where the wealthy Jewish community supported the legitimate government in Syria. It appears that countries guided by a strong established church are immune from disruptive influence of lobbies; while countries without such a church the US and/or France give in to such influences and adopt illegal interventionism as a norm.
As US hegemony declines, we look to an uncertain future. The behemoth might of the US military can still wreck havoc; a wounded beast is the most dangerous one. Americans may listen to Senator Ron Paul who called to give up overseas bases and cut military expenditure. Norms of international law and sovereignty of all states should be observed. People of the world will like America again when it will cease snooping and bullying. It isn’t easy, but we’ve already negotiated the Cape and gained Good Hope.
(Language edited by Ken Freeland)
Goldman Sachs is the epitome of the word “evil.” If one wants to know what the evil central bankers are up to, one only needs to pay attention to the actions of Goldman Sachs. The power elite residing inside of this country does not begin and end with the Federal Reserve, that privilege is reserved for the interrelationship between Goldman Sachs, the Federal Reserve, the corrupt World Bank and the IMF. And now, Goldman Sachs is running the European financial system into the ground as another Goldman Sachs boy, “Super” Mario Monti, has taken over Italy to finish off what is left of the Italian financial system. Monti is also the head of the European Trilateral Commission as well as a Bilderberg member. And yet another Goldman Sachs boy is finishing off the job in Greece. It is the mission of Goldman Sachs to implode the global economy with massive debt arising from the failed derivatives market, in which the debt totals 16 times the total GDP of the planet and that debt has been passed on to the governments of the world. There is no way that any country will ever pay off this debt. The world’s financial system will be collapsed and then reorganized under the Bank of International Settlement. Goldman Sachs is merely the grim reaper in this unholy process.
The Goals of Goldman Sachs
The purpose of this article is to expose the three pronged attack, directed at the American people, by Goldman Sachs, and its partners at the Federal Reserve, the US Treasury Department, the IMF and the World Bank. These central banker controlled institutions are engaged in a plot which is designed to accomplish the following:
- The destruction of America’s domestic economy through the introduction of derivative debt which is 16 times greater than the world’s GDP. This goal has been accomplished as evidenced by the fact that America now has more workers on welfare (101 million) as opposed to actual full time workers (97 million).
- Setting the chessboard in such a way that WWIII is a foregone conclusion. This is near completion as the US and Israel are poised to go to war with China and Russia, over Syria and Iran, in order to preserve the Petrodollar.
- Initiating a false flag event which will culminate in martial law and the elimination to all opposition to both the coming WWIII and the imposition of a tyrannical world government as well as a one world economic system.
It is no secret that Goldman Sachs runs Wall Street. After the first bail out, Goldman Sachs cut the head off of Shearson Lehman and several other Wall Street competitors when they used their undue influence to determine winners and losers after the first round of TARP. Even Ray Charles could see that Goldman Sachs is in near complete control of our government as evidenced by the former Goldman Sachs gangsters who have run our economy into the ground (e.g., Clinton’s Secretary of Treasury Goldman Sachs’ Rubin, Bush’s Secretary of Treasury Goldman Sachs’ “too big to fail” Hank Paulson, etc.). Make no mistake about it, the introduction of the massive derivatives debt was a power consolidation move designed to collapse the economy and hand over essential control to Goldman Sachs and its partners.
History Repeats Itself
Today’s events parallel the imperialists of the early 2oth Century which resulted in World War I. The Wall Street led depression of the 1930’s led to the rise of political extremism and ultimately to World War II. Today, Goldman Sachs and their fellow Wall Street cronies are currently running, or dare I say ruining the global economy and the consequences are going to result in the culmination of World War III from which these same gangster bankster’s will profit from the buildup, the death and destruction of billions of innocent people as well as profiting from the lucrative clean up which follows every war.
The ultimate prize for the coming war will be the ruination of the planet in order that the power structure of the earth can be reinvented in a manner that not even George Orwell could imagine. Remember, as the globalists like to say in reference to their favorite Hegelian Dialectic quote, “Out of chaos comes order.” Of course, it won’t be Goldman Sachs’ money that pays for the destruction of humanity in the coming world war. This coming war and its subsequent blood money will be your money and my money. It goes without saying that it won’t be the executives of Goldman Sachs children who are pressed into military service and will be eventually sacrificed on the battlefields of WWIII. It will be your children and my children who will be sacrificed in the name of furthering the bottom line of the Goldman Sachs Mafia and their masters at the Bank of International Settlement. Meanwhile, the Goldman Sachs children who will be safely tucked away as the world’s final chapter plays out as we know it.
Goldman Sachs Destroying the American Middle Class
This swath of international destruction being promulgated by Goldman Sachs is also being visited upon the daily lives of the American public here at home. Courtesy of the Goldman Sachs gangsters, there are no more safe financial havens for American citizens. Your bank account, your pension fund, your investment accounts and your home mortgages are no longer safe. These collective funds are not in jeopardy because of the risk of falling victim to the failing economy as much as these funds are subject to confiscation by Goldman Sachs and its shell corporations along with the complicit support of the federal government. Most of these public officials are former Goldman Sachs employees. A clear case in point lies in what happened with MF Global.
MF Global, a shell corporation beholding to Goldman Sachs, was led to the slaughter by the former Goldman Sachs executive and former New Jersey Governor and senator, John Corzine. Corzine’s criminal actions directly victimized 150,000 Americans by stealing an estimated $900 million dollars of his clients’ money from their supposedly secure private accounts. There is also another $600 million missing dollars from MF Global which is still unaccounted for today. Meanwhile, Corzine avoids sharing a prison cell with Bernie Madoff by purchasing a “get-out-of-jail card” through the sponsorship of a $35,000 per plate fundraiser for that great Wall Street puppet, Barack Hussein Obama. And what are the government watch dogs doing to protect our money from this new generation of robber barons? The short answer is that key federal officials are actually partners with Goldman Sachs in this monumental violation of the public trust. Take Gary Gensler, a former Goldman Sachs executive partner, who like so many other Goldman Sachs gangsters, have been placed into key governmental oversight positions in order to protect the Goldman Sachs co-conspirators from prosecution as they continue their reign of terror upon the global economy.
…but a Goldman Sachs cop on the take.
Gary “the gangster” Gensler is the former Undersecretary of the Treasury(1999-2001) and Assistant Secretary of the Treasury (1997-1999) and the current director of the Commodity Futures Trading Commission. In his position at the time of the MF Global debacle, Gensler had the authority to go after Corzine for his role in the MF Global theft of customer funds and order restitution. However, Gensler has decided to protect a fellow member of the Goldman Sachs Mafia by not looking into the massive fraud and theft by Corzine and his cronies. Your tax dollars, paying the salary of federal officials, are overseeing the most massive illegal private transfer of wealth in the history of the planet. And this debt is payable to Goldman Sachs and their criminal enterprise partners.
You may not be one of the current 150,000 Goldman Sachs/MF Global victims. However, this Robin Hood-in-reverse-scenario, in which the rich are plundering what’s left of the middle class, will soon be visited upon your bank account, your home mortgages and your pensions. Whether it is the MERS mortgage fraud or the theft being perpetrated upon Federal employee retirement accounts, these criminal banksters are in the process of stealing it all and what are you going to do about it? Our nation of entrenched sheep will do nothing. The American citizens are going to lie down and take their beating in the face of the largest unfolding criminal syndicate in human history.
While you and the rest of America are trying to collectively remove your “deer in the headlight” glaze, you, as an American, have far more serious issues to concern yourself with and you are not going to have to wait long to have your worst fears to be born out.
Something Wicked This Way Comes
Some, who have heard my expressed sense of outrage, have asked me if I favor a violent overthrow the United States Government. To that question, I answer in the negative. However, show me a way to be involved in the overthrow of the gangsters who have hijacked my country’s government, and I will be the first in line. However, before that day arrives, we have some very formidable obstacles to face with regard to what is looming just around the corner.
Goldman Sachs Is the Financial Kingpin of False Flag Attacks
If one wants to predict the next false flag attack, one merely has to watch the actions and the money movements of Goldman Sachs.
In the days leading up to the attacks on 9/11, Goldman Sachs “shorted” the sale of airline stocks which plummeted in the aftermath of the attacks. Just a coincidence you say?
In the days leading up to the housing bubble, Goldman Sachs shorted housing stocks which ignited the bubble. The Federal government fined Goldman Sachs, but in typical fashion, nobody went to jail. Just another coincidence you say?
As I documented in my seven part series, The Great Gulf Coast Holocaust, Goldman Sachs executed a “put option” for preferred insiders invested in Transocean stock, thus protecting the profits of these preferred insiders on the morning of the explosion. Transocean was the owner of the ill-fated oil rig. Goldman Sachs also sold the lion’s share of its stock less than two weeks before that fateful day on April 20, 2010. Nalco was the subsidiary of Goldman Sachs and BP at the time of the explosion. Who is Nalco? Nalco was the exclusive manufacturer of the deadly oil dispersant, Corexit. Corexit has done more to wreck the ecology of the Gulf as well as the health of the Gulf Coast residents than the oil spill itself. Again, this is all documented in my seven part series. By the way, I count another three coincidences in this paragraph alone and if you are keeping score, we are looking at a total of five amazing coincidences. But wait, there is more!
The moral of this story is clear, if there is to be a significant false flag event, the financial actions of Goldman Sachs will prove to be the key. And Goldman Sachs’ actions have signaled yet another oncoming false flag. As I reported on in April, Goldman Sachs instructed its brokers to sell short on gold stocks. And then after the bulk of the gold market panicked and the price of gold plummeted in a massive sell off, the Goldman Sachs boys did it again. The Goldman Sachs brokers began to purchase gold in massive amounts, for its elite clients, at a greatly depressed price. By the way, Goldman Sachs employed the EXACT same strategy with regard to the Gulf Oil tragedy. When Goldman Sachs sold off BP stock in the days before the explosion, they purchased massive amounts of BP stock at a greatly reduced price in June of 2010. The coincidence meter is now up to seven.
Why Goldman Sachs Cornered the Gold Market
The global elite would only want massive amounts of gold because something bad is about to happen to the dollar. When the dollar collapses, the elite, courtesy of the Goldman Sachs brokers will be sitting in a great position in which they hold the only sustainable medium of exchange following the collapse. But when will the collapse come? What form will it take?
As I reported, less than two weeks ago, the Bank of International Settlement ordered the central banks, including the Federal Reserve, to greatly decrease loans as a protection to the coming bad financial times. So, now we are getting warned and the narrowing down of where this is leading, is getting easier to predict.
It is important to remember that Goldman Sachs and the rest of the international banking community desperately want to wage war in Syria and eventually Iran over the demise of the Petrodollar caused by Iran in which they are selling oil for gold to India, China and Russia. There is also big money to be made by the banks in an upcoming global conflict. More importantly, and just as the world witnessed in the aftermath of WWII, consolidation of power can be achieved following a major war. Additionally, Goldman Sachs and the rest of the international bankers are not about to let China and Russia thumb their noses at the prevailing economic system. Gold will not be allowed to be used as a medium of exchange for nation states, because a nation on the gold standard, is a nation that controls its debt levels and financial security. This is unacceptable to the central bankers who kill national leaders, such as Gadaffi and Sadam Hussein, for daring to break from the plan and achieve financial independence. What the globalists also need is a game changing event which will destroy all opposition to the coming war. And the financial intentions of Goldman Sachs clearly speaks to the fact that a false flag attack is imminent which will implicate Syria and Iran and provide the pretext for the US and Israel to attack.
The Nature of the Coming False Flag Attack
The coming false flag attack which will plunge America into martial law, for our own protection of course, will result in WWIII. The false flag event could take two forms. It was reported two weeks ago, that the US was missing a nuclear weapon from a military base in Texas. This prompted Senator Lindsay Graham to state that the harbor in Charleston, SC. would be nuked if the US did not attack Syria. This is the first scenario.
The other scenario, and the far more likely one, has the power grid going down on November 13th. The Grid Ex II drill being conducted by DHS, FEMA, 150 corporations and the 50 governors, will simulate a power grid take down by terrorists on that same date. How many times have we witnessed a drill which turns into a false flag attack? This happened with 9/11, the 7/7 bombings and the Boston Marathon. There is a good chance it is going to happen here
In this scenario, once the grid is taken down, a banking collapse can be instituted and most will not notice because by the third day of a blackout, total chaos will ensue and nobody will be paying attention to the banks. Martial law will be imposed and Syria and Iran will be blamed.
The CEO of Goldman Sachs, Llloyd Blankfein, is on the record stating that an economic collapse is imminent. Need I say more?
Regardless of the form that an upcoming false flag event will follow, Goldman Sachs has tipped their false flag hand. A false flag event is coming and it is a safe bet that it will culminate in martial law. This would certainly explain DHS’ collecting of 2.6 billion rounds of ammunition and 2700 armored personnel carriers. There is also going to be a resulting third world war. The globalists know humanity is waking up. They are running out time and they are desperate. This could all be over in a few months. Do you not feel the collective sense of dreaded anticipation that has overtaken the country? At the unconscious level, we all know what is coming.
The November power grid drill is worth watching and I predict in the upcoming weeks, there will be many articles written about how to survive the coming events. I would advise all to pay attention, but most of all, I would advise people to get their spiritual affairs in order. We come into the world with nothing and all we leave with is the sum total of our spiritual experiences. It is time to attend to that detail in the present time frame.
Source: The Common Sense Show
You are capable of critical thinking.
You distrust mainstream media.
You like nature.
You think it’s a good idea to spend the Friday after Thanksgiving with your family rather than camping outside Best Buy to get a cheap plasma television made in China.
You think it’s a little strange that WTC building 7 came down at free fall speed on 9/11 yet it was never hit by a plane.
You think that drones in America might not be for Al Qaeda.
You would like to be able to get on a plane without having to engage in a mandatory radiation bath and digital strip search.
You have read a book in the past year.
You think you have the right to protest.
You think the War on Terror is a scam.
You think the War on Drugs is a scam.
You think the anger directed at America from the Middle East could possibly be related to our foreign policy rather than hating how amazingly free we are.
You think the Republicans and Democrats are exactly the same on the important issues affecting our country.
You think believing in The Constitution does not constitute a terrorist act.
You have heard of the Bill of Rights and can even name what some of them are.
You question whether the government loves you.
You think the right to bear arms is not for hunting, rather so citizens can fight back should the government become a bunch of tyrannical thugs.
You don’t own a television, and if you do, all you watch is RT, especially the Keiser Report and Capital Account.
You don’t think the NDAA is the name of Kesha’s latest single.
You think rich, powerful and connected people should be subject to the rule of law and go to jail if they commit crimes. Even if they are bankers and work at JP Morgan or Goldman Sachs.
You think corporations aren’t people.
You think Warren Buffet is a phony and a crony capitalist.
You don’t care that Warren Buffet likes cherry coke, hamburgers and ice cream. He’s still a bad guy.
You know that gold was made illegal by FDR in 1933 and confiscated from the American people. You know that gold bullion remained illegal for Americans to own until 1975.
You think politicians that push for war should be sent to fight on the front lines. If they are unable, their children should go.
You want your food to be labeled GMO so that you can make your own decisions on what you are consuming.
You grow your own food.
You buy raw milk.
You think food and energy should be included in inflation calculations.
You are aware that the Department of Homeland Security has purchased 1.2 billion rounds of ammo in the past year.
You question whether said ammo purchases are in anticipation of a Normandy beach style landing by Al Qaeda.
You think allowing a small group of unelected people (The Federal Reserve) to print unlimited amounts of money and distribute it as they please might not be a good idea.
If you answered yes to more than five of the above, you might be a conspiracy theorist. You also may be on the government’s terror watch list. Be very alarmed and report it to the authorities immediately should you discover your neighbors engaged in such uncivilized thought.
Source: Liberty Blitzkrieg
You are a conspiracy nutjob if you think that the US government runs al-Qaeda since the 80s.
You think that al-Qaeda and the FSA are the combatants using chemical weapons in Syria, not the Syrian government.
You think all the FEMA camps across the United States is for undesirable Americans after the collapse.
You think that the unrestrained spying on all Americans by the NSA is illegal.
You think that whisleblowers are the real patriots.
You think that the push for war in Syria is not about WMD’s but a globalist/zionist agenda to destabilize the Middle East.
You believe that vaccines pushed by the government are dangerous and not good for you.
If any of you have any more reasons to think that you are a conspiracy theorist, feel free to key it down in the comment section…
The practices and methods of manipulating commodity markets, is a staple topic in financial journalism. Options, futures and exotic forms of derivatives, often put under the microscope, gives rise to calls for substantive regulation. One area of the commodity trade, seldom examined is that involved with physical commodities trading. With much fanfare, Under siege, JPMorgan to quit physical commodities, a Reuters announcement has many seasoned street professionals shocked.
“JPMorgan Chase & Co is exiting physical commodities trading, the bank said in a surprise statement on Friday, as Wall Street’s role in the trading of raw materials comes under unprecedented political and regulatory pressure.
Although the commodity division’s $2.4 billion in reported revenue last year surpassed those of long-time rivals Goldman Sachs Group Inc and Morgan Stanley combined, some have queried its profitability due to the costs of running a huge logistical operation. One analyst estimated that physical trade accounted for half or more of overall commodities revenue.”
A little background provides context. The excellent financial site Naked Capitalism illustrates one aspect of the art of manipulation. The article, SEC Gives JP Morgan and Other Big Banks License to Manipulate Commodities, reasons that the business of physical commodity storage is very different from a free enterprise marketplace.
“The SEC has paved the way for investors to take a direct stake in commodities, rather than through commodities futures. The agency gave the green light to JP Morgan to launch a fund whose shares would be backed by warehoused copper. The implications are not pretty. Per Khan:
In practical terms, the SEC handed traders at J.P. Morgan control over 20 to 30 percent of the copper available for immediate delivery from the London Metals Exchange — the commercial market where companies that use copper go to procure last-minute supplies.
The investors purchasing shares in J.P. Morgan’s fund won’t be buying copper to use, but to store. The intricacies of the fund are complex, but its underlying rationale is straightforward: the more shares investors buy, the more copper is taken off the market. And the more copper that is taken off the market, theoretically the more valuable the copper and the shares become.
“Allowing investors to speculate in the futures market created horrific price volatility,” said Michael Greenberger, a law professor at the University of Maryland and former director at the CFTC. “Here, you’re allowing investors to intervene with physical supplies. We’ll see a double whammy.”
Policy analyst Lina Khan continues to make her case in her original essay, JP Morgan Gets a Big Holiday Gift From the SEC.
“Speculators have been limited to trading in futures, which are forms of bets that link only indirectly with physical supply of copper. Two weeks ago, however, the SEC blessed a controversial fund designed by J.P. Morgan Chase that, for the first time, will let investors buy shares backed by physical, warehoused copper, to use as a form of investment.
The change may seem arcane. But long-time participants in the copper market say the effects will be immediate: Manufacturers looking to make productive use of copper will find themselves competing with speculators backed by some of the richest banks and funds in the world, raising prices for many consumer products. The long-term result may be even more disturbing: The SEC’s ruling all but invites bankers to increase speculation in other, even more essential goods, like grain and oil.”
So why would the “House of Morgan” want to exit another component business that multiplies the synergistic relationship, which enables the systematic control of price movement? In another Reuter Analysis: JPMorgan faces ‘hard sell’ in crowded market for commodity traders states:”The Federal Reserve is reconsidering a landmark 2003 decision that first allowed banks to trade physical commodities, in addition to traditional derivatives.”Here resides the rub. Remember the double whammy that Professor Greenberger alludes, seems to have a real world dark side. Again, Reuter provides an underlying factor in J P Morgan’s decision process.
“The bank is said to be in talks over a $400 million deal to settle allegations that it manipulated power markets; the metals warehousing industry is under public and political scrutiny over allegations that long queues are driving up prices.”
With the vertical integration of finance after the repeal of Glass-Steagall, the too big to fail culture, opened the door to investment banksters for becoming legal monopolists in areas of business, foreign to traditional banking practices. In the Bloomberg article,JPMorgan Mulls Physical Commodities Exit Amid U.S. Review, the risk of mixing distinct and separate business functions and allowing financial institutions umbrella sanctions, only leads to higher prices.
“Physical commodities trading “is where it becomes more controversial,” said Brad Hintz, a bank analyst with Sanford C. Bernstein & Co. in New York. “Is that necessary in order to be a player on the risk side, is it necessary for the financing?”
Some lawmakers and customers have said banks can take advantage of their multiple roles to manipulate prices and get an information edge.”
These multiple roles are crucial failures of mega banking. In the aftermath of the “London Whale” fiasco, the concern that JPMorgan Chase: Out of Control, needs a total evaluation. Josh Rosner author and research consultant offers a sober assessment.
“In our reviews we could not find another “systemically important” domestic bank that has recently been subject to as many public, non-mortgage related, regulatory actions or consent orders. The firm’s pride in a disputable “fortress balance sheet” – which underestimates their off-balance sheet risks – appears to have given investors false comfort. Poor risk management and control failures are almost always the major drivers of capital destruction.”
The complexity in all the factors that make up the prices of commodities seems too complicated for any algorithm program to compute. However, it is an easy leap to understand that when a bank controls the actual warehouse storage of physical commodities, that speculative risk diminishes as trading manipulation intensifies. J P Morgan just might be looking at the Goldman Sachs aluminum scandal with concern and apprehension.
Now that the financial hype is celebrating a new all time high in the stocks, the time to exit the market may well be at hand. So what will that Oracle of Omaha do with all the insider information available from his compadre network? The business press swoons all over Warren Buffett with every report, while only a few intrepid journalists would dare write about the dark side of Wall Street’s favorite equity cheerleader. The guru of sweet heart deals floats in the rarified air of a political cronyism ongoing honeymoon. So what is likely for his Berkshire Hathaway flagship company now that the ticker is breathing on pure oxygen?
At the Berkshire Hathaway Shareholders Meeting, the forecast projects that the market will continue to rise. Berkshire Cash Hits Record $49.1 Billion as Profit Climbs, cites Bill Smead, portfolio manager of the Smead Value Fund, “Warren has organized the company around the rebirth of the United States economy over the next 10 years and this is the beginning of that rebirth.”
Not everyone looks at the next decade as a boom for the economy. The easy money out of the Federal Reserve ultimately fuels the hysteria that is pushing the current rally. For the average consumer the markets smell of an elitist stench. The venerability of a top and a collapse has many remnants of the former middle class scared. Should the expectation be that a House of Cards is on the horizon or should the deal from the bottom of the deck continue as the insiders pump and dump their latest speculative fizz?
Examine just how Buffett operates. His reputation as a stock picker largely ignores any of the dirty laundry that follows in his wake. In the event you forget, the audacious reporting of Charles Gasparino, reminds of the methods employed in the investment culture of his associates. Cited in Saint Warren’s dark side, the working of the protecting racket that rewards the Buffett organization, smacks of the very definition of “too big to fail”.
“The SEC interviewed Buffett last year over one of the most sordid corporate affairs I’ve seen in a long time: His longtime aide and one-time heir-apparent bought shares in a company called Lubrizol just before Buffett purchased the outfit.
The executive, David Sokol, made a hefty profit from the purchase, and even advised Buffett to buy the company in the first place.
Insider trading? I can’t say if it was outside the law. But the SEC is looking into the matter. (SEC and Sokol spokesmen declined to comment on the probe’s status; Buffett didn’t return repeated calls seeking comment.)
Yet I don’t recall any major media outfit bringing up the sordid affair while Buffett was lecturing the nation on tax fairness. Nor did any jump on Buffett’s bizarre initial reaction as Sokol was resigning from Berkshire last year: He defended Sokol’s actions — which, even if they weren’t illegal, still smack of the kind of corporate favoritism that Obama and the rest of the left continually denounce.”
Barrons report another sordid episode swept under the rug in the article, A Buffett Bubble in BYD?
“In September of 2008, just after Lehman Brothers’ collapse had taken the financial crisis to a new level, Warren Buffett’s Berkshire Hathaway scooped up 9.9% of Chinese battery and electric-car maker BYD for HK$8 (US$1.03) a share. Even a renowned long-term value investor had to be impressed by the near-term sizzle: Within 18 months, BYD shares had rocketed to HK$88. Then the engine started to sputter.
BYD also may have been spoiled by the Buffett bubble built into the shares, which some analysts estimate could be as big as a 30%. “People regard Buffett well as an investor and are happy to stick with the stock as long as he is still holding it,” says Lewis. His departure could have have a huge adverse effect, they say. “A big Berkshire [BRK.A] premium is the only way you could justify where the stock is trading right now,” says Lewis. “You’ve got to ask yourself: Would Warren make the same decision today on BYD? I suspect not.” At the least, he will see Berkshire’s stake diluted by the offering and local reports say Berkshire won’t subscribe further. BYD trades at more than 50 times earnings.”
Finally, Forbes reflects on the big daddy of deals with that great vampire squid in the analysis, Goldman Sachs Reworks $5B In Warrants Held By Buffett’s Berkshire.
“Essentially, Buffett had the right to purchase 43.5 million shares of Goldman at $115 apiece until October 1, 2013. Under the new terms, Buffett will receive “the number of shares of common stock equal in value to the difference between the average closing price over the 10 trading days preceding October 1, 2013 and the exercise price of $115 multiplied by the number of shares of common stock covered by the warrant (43,478,260).”
The short form: instead of paying Goldman $5 billion in cash for stock worth considerably more, Buffett will simply take the amount of stock equivalent to the difference without paying the company.”
Now are their examples of special circumstances just the sign of astute investing or is this a pattern of synergetic regulatory favoritism and fusion with ruling governmental outlaws? Poor old uncle Warren, licking his ice cream cone while playing the ukulele. When will the anti-trust laws apply to the game rigging plutocrats? Evidently, the Buffett’s of the fixed exchanges have bought and paid for the best political protection available. Avoiding a speculative melt down is impossible for the man on the street, but the privileged globalists are well entrenched in their protected palaces built upon ill-gotten gain.
Run Buffett out of town on one of his rails, for railroading free enterprise into a dark tunnel. The derailment of our economy benefits the market manipulators, as the rest struggles to dig out of the collapsed slide of rubble that buries us alive. Elevating Buffett as an investment sage defies common sense.
The descent was gradual—a slide into the tawdry, the trivial and the inane, into the charade on cable news channels such as Fox and MSNBC in which hosts hold up corporate political puppets to laud or ridicule, and treat celebrity foibles as legitimate news. But if I had to pick a date when commercial television decided amassing corporate money and providing entertainment were its central mission, when it consciously chose to become a carnival act, it would probably be Feb. 25, 2003, when MSNBC took Phil Donahue off the air because of his opposition to the calls for war in Iraq
Donahue and Bill Moyers, the last honest men on national television, were the only two major TV news personalities who presented the viewpoints of those of us who challenged the rush to war in Iraq. General Electric and Microsoft—MSNBC’s founders and defense contractors that went on to make tremendous profits from the war—were not about to tolerate a dissenting voice. Donahue was fired, and at PBS Moyers was subjected to tremendous pressure. An internal MSNBC memo leaked to the press stated that Donahue was hurting the image of the network. He would be a “difficult public face for NBC in a time of war,” the memo read. Donahue never returned to the airwaves.
The celebrity trolls who currently reign on commercial television, who bill themselves as liberal or conservative, read from the same corporate script. They spin the same court gossip. They ignore what the corporate state wants ignored. They champion what the corporate state wants championed. They do not challenge or acknowledge the structures of corporate power. Their role is to funnel viewer energy back into our dead political system—to make us believe that Democrats or Republicans are not corporate pawns. The cable shows, whose hyperbolic hosts work to make us afraid self-identified liberals or self-identified conservatives, are part of a rigged political system, one in which it is impossible to vote against the interests of Goldman Sachs, Bank of America, General Electric or ExxonMobil. These corporations, in return for the fear-based propaganda, pay the lavish salaries of celebrity news people, usually in the millions of dollars. They make their shows profitable. And when there is war these news personalities assume their “patriotic” roles as cheerleaders, as Chris Matthews—who makes an estimated $5 million a year—did, along with the other MSNBC and Fox hosts.
It does not matter that these celebrities and their guests, usually retired generals or government officials, got the war terribly wrong. Just as it does not matter that Francis Fukuyama and Thomas Friedman were wrong on the wonders of unfettered corporate capitalism and globalization. What mattered then and what matters now is likability—known in television and advertising as the Q score—not honesty and truth. Television news celebrities are in the business of sales, not journalism. They peddle the ideology of the corporate state. And too many of us are buying.
The lie of omission is still a lie. It is what these news celebrities do not mention that exposes their complicity with corporate power. They do not speak about Section 1021 of the National Defense Authorization Act, a provision that allows the government to use the military to hold U.S. citizens and strip them of due process. They do not decry the trashing of our most basic civil liberties, allowing acts such as warrantless wiretapping and executive orders for the assassination of U.S. citizens. They do not devote significant time to climate scientists to explain the crisis that is enveloping our planet. They do not confront the reckless assault of the fossil fuel industry on the ecosystem. They very rarely produce long-form documentaries or news reports on our urban and rural poor, who have been rendered invisible, or on the wars in Iraq and Afghanistan or on corporate corruption on Wall Street. That is not why they are paid. They are paid to stymie meaningful debate. They are paid to discredit or ignore the nation’s most astute critics of corporatism, among them Cornel West, Medea Benjamin, Ralph Nader and Noam Chomsky. They are paid to chatter mindlessly, hour after hour, filling our heads with the theater of the absurd. They play clips of their television rivals ridiculing them and ridicule their rivals in return. Television news looks as if it was lifted from Rudyard Kipling’s portrait of the Bandar-log monkeys in “The Jungle Book.” The Bandar-log, considered insane by the other animals in the jungle because of their complete self-absorption, lack of discipline and outsized vanity, chant in unison: “We are great. We are free. We are wonderful. We are the most wonderful people in all the jungle! We all say so, and so it must be true.”
When I reached him by phone recently in New York, Donahue said of the pressure the network put on him near the end, “It evolved into an absurdity.” He continued: “We were told we had to have two conservatives for every liberal on the show. I was considered a liberal. I could have Richard Perle on alone but not Dennis Kucinich. You felt the tremendous fear corporate media had for being on an unpopular side during the ramp-up for a war. And let’s not forget that General Electric’s biggest customer at the time was Donald Rumsfeld [then the secretary of defense]. Elite media features elite power. No other voices are heard.”
Donahue spent four years after leaving MSNBC making the movie documentary “Body of War” with fellow director/producer Ellen Spiro, about the paralyzed Iraq War veteran Tomas Young. The film, which Donahue funded himself, began when he accompanied Nader to visit Young in the Walter Reed National Military Medical Center in Washington, D.C.
“Here is this kid lying there whacked on morphine,” Donahue said. “His mother, as we are standing by the bed looking down, explained his injuries. ‘He is a T-4. The bullet came through the collarbone and exited between the shoulder blades. He is paralyzed from the nipples down.’ He was emaciated. His cheekbones were sticking out. He was as white as the sheets he was lying on. He was 24 years old. … I thought, ‘People should see this. This is awful.’ ”
Donahue noted that only a very small percentage of Americans have a close relative who fought in Iraq or Afghanistan and an even smaller number make the personal sacrifice of a Tomas Young. “Nobody sees the pain,” he said. “The war is sanitized.”
“I said, ‘Tomas, I want to make a movie that shows the pain, I want to make a movie that shows up close what war really means, but I can’t do it without your permission,’ ” Donahue remembered. “Tomas said, ‘I do too.’ ”
But once again Donahue ran into the corporate monolith: Commercial distributors proved reluctant to pick up the film. Donahue was told that the film, although it had received great critical acclaim, was too depressing and not uplifting. Distributors asked him who would go to see a film about someone in a wheelchair. Donahue managed to get openings in Chicago, Seattle, Palm Springs, New York, Washington and Boston, but the runs were painfully brief.
“I didn’t have the money to run full-page ads,” he said. “Hollywood often spends more on promotion than it does on the movie. And so we died. What happens now is that peace groups are showing it. We opened the Veterans for Peace convention in Miami. Failure is not unfamiliar to me. And yet, I am stunned at how many Americans stand mute.”
Chris Hedges, whose column is published Mondays on Truthdig, spent nearly two decades as a foreign correspondent in Central America, the Middle East, Africa and the Balkans. He has reported from more than 50 countries and has worked for The Christian Science Monitor, National Public Radio, The Dallas Morning News and The New York Times, for which he was a foreign correspondent for 15 years.
In our modern world there exist certain institutions of power. Not government committees, alphabet agencies, corporate lobbies, or even standard military organizations; no, these are the mere “middle-men” of power. The errand boys. The well paid hitmen of the global mafia. They are not the strategists or the decision makers.
Instead, I speak of institutions which introduce the newest paradigms. Who write the propaganda. Who issue the orders from on high. I speak of the hubs of elitism which have initiated nearly every policy mechanism of our government for the past several decades. I am talking about the Council On Foreign Relations, the Tavistock Institute, the Heritage Foundation (a socialist organization posing as conservative), the Bilderberg Group, as well as the corporate foils that they use to enact globalization, such as Monsanto, Goldman Sachs, JP Morgan, the Carlyle Group, etc.
Many of these organizations and corporations operate a revolving door within the U.S. government. Monsanto has champions, like Donald Rumsfeld who was on the board of directors of its Searle Pharmaceuticals branch, who later went on to help the company force numerous dangerous products including Aspartame through the FDA. Goldman Sachs and JP Morgan have a veritable merry-go-round of corrupt banking agents which are appointed to important White House and Treasury positions on a regular basis REGARDLESS of which party happens to be in office. Most prominent politicians are all members of the Council on Foreign Relations, an organization which has openly admitted on multiple occasions that their goal is the destruction of U.S. sovereignty and the formation of a “one world government” or “supranational union” (their words, not mine).
However, one organization seems to rear its ugly head at the forefront of the most sweeping mass propaganda operations of our time, and has been linked to the creation of the most atrocious military methodologies, including the use of false flag events. I am of course referring to the Rand Corporation, a California based “think tank” whose influence reaches into nearly every sphere of our society, from politics, to war, to entertainment.
The Rand Corporation deals in what I would call “absolute gray”. The goal of the group from its very inception was to promote a social atmosphere of moral ambiguity in the name of personal and national priority. They did this first through the creation of “Rational Choice Theory”; a theory which prescribes that when making any choice, an individual (or government) must act as if balancing costs against benefits to arrive at an action that maximizes personal advantage. Basically, the ends justify the means, and moral conscience is not a factor to be taken seriously if one wishes to be successful.
Hilariously, rational choice theory has been attacked in the past by pro-socialist (collectivist) critics as “extreme individualism”; a philosophy which gives us license to be as “self serving” as possible while feeling patriotic at the same time. In reality, the socialists should have been applauding Rand Corporation all along.
What Rand had done through its propaganda war against the American people was to infuse the exact culture of selfishness needed to push the U.S. towards the socialist ideal. At the onset of any communist or national socialist society (sorry socialists, but they do indeed come from the same collectivist mindset), the masses are first convinced to hand over ultimate power to the establishment in order to safeguard THEMSELVES, not others. That is to say, the common collectivist man chooses to hand over his freedoms and participate in totalitarianism not because he wants what is best for the world, but because he wants what is best for himself, and he believes servitude to the system will get him what he wants with as little private sacrifice as possible (you know, except for his soul…).
The psychologist Carl Jung notes in his observations of collectivism in Nazi Germany and Stalinist Russia that most citizens of those nations did not necessarily want the formation of a tyrannical oligarchy, but, they went along with it anyway because they feared for their own comfort and livelihoods. Many a German supported the Third Reich simply because they did not want to lose a cushy job, or a steady paycheck, or they liked that the “trains ran on time”. Socialism is by far the most selfish movement in history, despite the fact that they claim to do what they do “for the greater good of the greater number”.
Rand also used Rational Choice Theory as a means to remove questions of principle from the debate over social progress. Rational Choice propaganda commonly presents the target audience with a false conundrum. A perfect example would be the hardcore propaganda based television show ‘24’ starring Kiefer Sutherland, in which a government “anti-terrorism” agent is faced with a controlled choice scenario in nearly every episode. This choice almost always ends with the agent being forced to set aside his morals and conscience to torture, kill, and destroy without mercy, or, allow millions of innocents to die if he does not.
Of course, the real world does not work this way. Life is not a chess game. Avenues to resolution of any crisis are limited only by our imagination and intelligence, not to mention the immense number of choices that could be made to defuse a crisis before it develops. Yet, Rand would like you to believe that we (and those in government) are required to become monstrous in order to survive. That we should be willing to forgo conscience and justice now for the promise of peace and tranquility later.
This is the age old strategy of Centralization; to remove all choices within a system, by force or manipulation, until the masses think they have nothing left but the choices the elites give them. It is the bread and butter of elitist institutions like Rand Corporation, and is at the core of the push for globalization.
In my studies on the developing economic disaster (or economic recovery depending on who you talk to) I have come across a particular methodology many times which set off my analyst alarm (or spidey-sense, if you will). This latest methodology, called “Linchpin Theory”, revolves around the work of John Casti, a Ph.D. from USC, “complexity scientist” and “systems theorist”, a Futurist, and most notably, a former employee of Rand Corporation:
Casti introduces his idea of “Linchpin Theory” in his book “X-Events: The Collapse Of Everything”, and what I found most immediately striking about the idea of “Linchpin Events” was how they offered perfect scapegoat scenarios for catastrophes that are engineered by the establishment.
Linchpin Theory argues that overt social, political, and technological “complexity” is to blame for the most destructive events in modern human history, and it is indeed an enticing suggestion for those who are uneducated and unaware of the behind the scenes mechanics of world events. Casti would like you to believe that political and social tides are unguided and chaotic; that all is random, and disaster is a product of “chance” trigger events that occur at the height of a malfunctioning and over-complicated system.
What he fails to mention, and what he should well know being a member of Rand, is that global events do not evolve in a vacuum. There have always been those groups who see themselves as the “select”, and who aspire to mold the future to their personal vision of Utopia. It has been openly admitted in myriad official observations on historical events that such groups have had a direct hand in the advent of particular conflicts.
For instance, Casti would call the assassination of Archduke Franz Ferdinand of Austria an “X-event”, or linchpin, leading to the outbreak of WWI, when historical fact recalls that particular crisis was carefully constructed with the specific mind to involve the U.S.
Norman Dodd, former director of the Committee to Investigate Tax Exempt Foundations of the U.S. House of Representatives, testified that the Committee was invited to study the minutes of the Carnegie Endowment for International Peace as part of the Committee’s investigation. The Committee stated:
“The trustees of the Foundation brought up a single question. If it is desirable to alter the life of an entire people, is there any means more efficient than war…. They discussed this question… for a year and came up with an answer: There are no known means more efficient than war, assuming the objective is altering the life of an entire people. That leads them to a question: How do we involve the United States in a war. This was in 1909.”
So, long before the advent of Ferdinand’s assassination, plans were being set in motion by globalist interests to draw the U.S. into a large scale conflict in order to “alter the life, or thinking, of the entire culture”. When a group of people set out to direct thinking and opportunity towards a particular outcome, and the end result is a culmination of that outcome, it is obviously not coincidence, and it is definitely not providence. It can only be called subversive design.
In the economic arena, one might say that the collapse of Lehman Bros. was the “linchpin” that triggered the landslide in the derivatives market which is still going on to this day. However, the derivatives market bubble was a carefully constructed house of cards, deliberately created with the help of multiple agencies and institutions. The private Federal Reserve had to artificially lower interest rates and inject trillions upon trillions into the housing market, the international banks had to invest those trillions into mortgages that they KNEW were toxic and likely never to be repaid. The Federal Government had to allow those mortgages to then be chopped up into derivatives and resold on the open market. The ratings agencies had to examine those derivatives and obviously defunct mortgages and then stamp them AAA. The SEC had to ignore the massive fraud being done in broad daylight while sweeping thousands of formal complaints and whistle blowers under the rug.
This was not some “random” event caused by uncontrolled “complexity”. This was engineered complexity with a devious purpose. The creation of the derivatives collapse was done with foreknowledge, at least by some. Goldman Sachs was caught red handed betting against their OWN derivatives instruments! Meaning they knew exactly what was about to happen in the market they helped build! This is called Conspiracy…
One might attribute Casti’s idea to a sincere belief in chaos, and a lack of insight into the nature of globalism as a brand of religion. However, in his first and as far as I can tell only interview with Coast To Coast Radio, Casti promotes catastrophic “X-Events” as a “good thing” for humanity, right in line with the Rand Corporation ideology. Casti, being a futurist and elitist, sees the ideas of the past as obsolete when confronted with the technological advancements of the modern world, and so, describes X-event moments as a kind of evolutionary “kickstart”, knocking us out of our old and barbaric philosophies of living and forcing us, through trial by fire, to adapt to a more streamlined culture. The linchpin event is, to summarize Casti’s position, a culture’s way of “punishing itself” for settling too comfortably into its own heritage and traditions. In other words, WE will supposedly be to blame for the next great apocalypse, not the elites…
I might suggest that Casti’s attitude seems to be one of general indifference to human suffering in the wake of his “X-Events”, and that he would not necessarily be opposed to the deaths of millions if it caused the “advancement” of humanity towards a particular ideology. His concept of “advancement” and ours are likely very different, though. I suspect that he is well aware that X-Events are actually tools at the disposal of elitists to generate the “evolution” he so desires, and that evolution includes a collectivist result.
With almost every major economy on the globe on the verge of collapse and most now desperately inflating, taxing, or outright stealing in order to hide their situation, with multiple tinderbox environments being facilitated in the Pacific with China, North Korea, and Japan, and in the Middle East and Africa with Egypt, Syria, Iran, Pakistan, Yemen, Mali, etc., there is no doubt that we are living in a linchpin-rich era. It is inevitable that one or more of these explosive tension points will erupt and cause a chain reaction around the planet. The linchpin and the chain reaction will become the focus of our epoch, rather than the men who made them possible in the first place.
Strangely, Casti’s theory was even recently featured in an episode of the ABC mystery/drama show “Castle”, called “Linchpin” (what else?), in which a writer turned detective uncovers a plot by a “shadow group” to use the research of the innocent Dr. Nelson Blakely (apparently based on Casti) to initiate a collapse of the U.S. economy by assassinating the ten-year-old daughter of a prominent Chinese businessman, triggering a dump of U.S. Treasuries by China and fomenting WWIII:
Now, I think anyone with any sense can see where this is going. Casti and Rand Corporation are giving us a glimpse into the future of propaganda. This is what will be written in our children’s history books if the globalists have their way. The fact that Linchpin Theory is featured in a primetime television show at all is a testament to Rand Corporation’s influence in the media. But, as for the wider picture, are the trigger points around us really just a product of complex coincidence?
Not a chance.
Each major global hot-spot today can easily be linked back to the designs of international corporate and banking interests and the puppet governments they use as messengers. Casti claims that “X-events” and “linchpins” cannot be accurately predicted, but it would seem that they can certainly be purposely instigated.
The globalists have stretched the whole of the world thin. They have removed almost every pillar of support from the edifice around us, and like a giant game of Jenga, are waiting for the final piece to be removed, causing the teetering structure to crumble. Once this calamity occurs, they will call it a random act of fate, or a mathematical inevitability of an overly complex system. They will say that they are not to blame. That we were in the midst of “recovery”. That they could not have seen it coming.
Their solution will be predictable. They will state that in order to avoid such future destruction, the global framework must be “simplified”, and what better way to simplify the world than to end national sovereignty, dissolve all borders, and centralize nation states under a single economic and political ideal?
Is it the Hegelian Dialectic all over again? Yes. Is it old hat feudalism and distraction? Yes. But, I have to hand it to Casti and Rand Corporation; they certainly have refined the argument for collectivism, centralization, technocracy, slavery, moral relativism, and false-flag dupery down to a near science.
Source: Brandon Smith | Alt-Market
During the second half of the 20th century the United States was an opportunity society. The ladders of upward mobility were plentiful, and the middle class expanded. Incomes rose, and ordinary people were able to achieve old-age security.
In the 21st century the opportunity society has disappeared. Middle class jobs are scarce. Indeed, jobs of any kind are scarce. To stay even with population growth from 2002 through 2011, the economy needed about 14 million new jobs. However, at the end of 2011 there were only 1 million more jobs than in 2002. http://www.bls.gov/webapps/legacy/cesbtab1.htm
Only 426,000 of these jobs are in the private sector. The bulk of the net new jobs consist of waitresses and bartenders and health care and social assistance. According to the Bureau of Labor Statistics, over the 9 years, employment for waitresses and bartenders increased by 1,188,000. Employment in health care and social assistance increased 3,087,000. These two categories accounted for 1,000% of the net private sector job growth.
As for manufacturing jobs, they not only did not grow with the population but declined absolutely. During these nine years, 3.5 million middle class manufacturing jobs were lost.
Over the entire nine years, only 48,000 new jobs were created for architects and engineers.
In the 21st century the US economy has been able to create only a few new jobs and these are in lowly paid domestic services that cannot be offshored, such as waitresses and bartenders.
The lack of jobs, especially high value-added, high productivity jobs, is the reason real median household income has declined and the distribution of income has worsened. Without rising real household income, there cannot be a consumer economy.
In the early years of the 21st century, the Federal Reserve substituted a rise in consumer debt to drive the economy in place of the missing rise in consumer incomes. Low interest rates drove up housing prices, and people refinanced their mortgages and spent the equity. The Federal Reserve kept the economy alive by loading up consumers with debt that housing prices and consumer incomes would soon be unable to support.
When debt and real estate prices reached unsustainable levels, the bubble popped, and the ongoing financial crisis was upon us.
The cause of all of the problems is the offshoring of Americans’ jobs. When jobs are moved offshore, consumers’ careers and incomes, and the GDP and payroll and income tax base associated with those jobs, go with them. When the goods and services produced for American markets by offshored labor are brought into the US to be sold, the trade deficit rises, and downward pressure is put on the dollar, pushing up domestic inflation. (On October 12, statistician John Williams (shadowstats.com) reported that “third-quarter wholesale inflation jumped to an annualized 6.2%.”)
Jobs offshoring is driven by Wall Street, “shareholder advocates,” the threat of takeovers, and by large retailers, such as Walmart. By cutting labor costs, profits go up.It is that simple. However, as a result of sending American jobs to cheap labor countries, US consumer incomes go down. The end result is to destroy the domestic consumer market. What would have been US consumer income growth becomes instead profit growth for US corporations.
Keynesian economists use in their textbooks the example of how the aggregate effect of individual saving could be the opposite of the effect intended by the individuals. Whereas each saver seeks to improve his position by building wealth, in the aggregate saving could exceed investment, resulting in a decline in aggregate demand and a fall in income for all. Offshoring has the same logic. Each corporation can expect to gain more profits from moving US jobs offshore, but the aggregate effect is a fall in American consumer incomes and a reduction in the American consumer market.
I have told this story many times. But policymakers, the media, and economists seem unable to connect the dots.
Jobs offshoring has substantial implications for Social Security and Medicare. The US has the least adequate social safety net of any developed country. The two major components of the US social safety net are Social Security and Medicare for the elderly. Social Security and Medicare are financed by a payroll tax. The combined tax is 15.3% of payrolls. For the past quarter of a century the Social Security portion of the payroll tax has built up a surplus of over $2 trillion. Recently, the Medicare portion began running in the red.
Right-wing Republicans, free market ideologues, and the left-wing have all indoctrinated themselves with incorrect beliefs about Social Security and Medicare. The right-wing claims that a safety net financed with 15.3% of payrolls is a “Ponzi scheme” and an “unfunded liability.” If that is the case, then so are veterans benefits, military pensions, and federal pensions, all of which are financed by the income tax, the basis for the payroll tax.
The left-wing claims that the rich do not pay high enough payroll taxes, because the income subject to Social Security payroll tax is capped at about $110,000. But the benefits are also capped. Social Security is not supposed to be an income redistribution scheme from rich to poor, and it is not supposed to be a pension system for the rich. The pension paid is supposed to correlate with the pre-retirement income level of the retiree. Those who had higher wages or salaries and consequently paid more in payroll taxes receive a larger Social Security check than those who had lower wages and salaries and paid less payroll taxes, although there is favoritism toward the lower income earners who receive proportionally more in respect to their payroll taxes than higher income earners.
There is no cap on income subject to the Medicare portion of the payroll tax. Moreover, Medicare charges a Medicare Part B premium that is deducted from the Social Security monthly check. In addition, there is a further Part B premium based on retirement age income. For example, someone working beyond retirement age and making $250,000 per year pays about $3,800 in Medicare Part B premium in addition to the Medicare portion of the payroll tax of about $7,500. The annual premium he pays for his “free” Medicare for which he has paid all his working life with a payroll tax is about $11,300.
Moreover, Medicare by itself is insufficient coverage. To actually have medical coverage, those covered by Medicare have to purchase a supplementary private policy to cover the large gaps in Medicare. Depending on the range of coverage, a supplementary policy costs approximately $100 to $300 per month.
As the person making $250,000 per year is likely to go for the most coverage, he will be paying about $14,900 (excluding deductions and co-payments) per year for his “free” Medicare. This is despite having paid the Medicare payroll tax each year of his working life. A person who made $250,000 in taxable income per year for 30 years would have paid $217,500 into Medicare at the current Medicare payroll tax rate.
The right-wing’s notion that Social Security and Medicare are handouts, part of the welfare state’s bread and circuses, and the left-wing’s idea that the rich get a free ride are equally untrue.
(Note: $250,000 is the politicians’ dividing line between the rich and the rest of us. For a person making $50,000 a year, an income five times larger can seem rich. However, a $250,000 annual income leaves a family or person far distant from the lifestyle of the rich. Upper middle class incomes are generally associated with high-tax, high-cost urban areas in states with high income taxes. After federal income and payroll taxes, state income and sales taxes, and property taxes, what appears to many as a large income disappears. In New York City, the federal income tax will take about 25% of the $250,000, New York state will take about 9%, and New York City will take about 3.65%. The combined city and state sales tax is 8.875%. The property tax is high. The conclusion is that in New York City a $250,000 income is reduced to $125,000 or thereabouts. Those who claim “the rich don’t pay taxes” are not talking about $250,000 incomes.)
Social Security and Medicare have served the country well. They protect the individual from his own mistakes, from crooked and incompetent money managers, and from financial crises, and they protect society from the moral dilemma of confronting large numbers of fellow citizens who through fault or no fault of their own cannot provide for their livelihood and medical care. After the financial scandals and crisis of the past five years, it is a stretch to believe that any but the astute can manage their personal wealth, whether small or large, in today’s situation of unregulated financial markets, zero interest rates, currency uncertainty, and highly complex investment instruments with computers programmed with mathematical models dominating equity trades.
The argument that conceptually a person could do better by investing his payroll taxes in the stock market is a poor basis for old age security policy. The person can do better as long as he or she doesn’t fall into the hands of a Bernie Madoff or a Goldman Sachs, doesn’t receive zero interest on his bonds because the Federal Reserve has to bail out the “too big to fail banks,” doesn’t experience a decline in currency value due to monetization of enormous federal deficits, and doesn’t experience a bear market as he approaches retirement.
The right-wing ideologues who try to scare old age security out of existence go on and on about rising medical costs, about an aging population living longer, declining birthrates and a worsening ratio of workers to retirees, about people learning to rely on handouts rather than their own means, and about Washington’s rising unfunded liabilities.
Scare projections are designed to scare, and most are untenable. For example, longevity was a product of rising incomes, good diet, and antibiotics. Today only the upper crust have rising incomes. Antibiotics are wearing out from abuse and rising immunity of bacteria. Diet is compromised in ways still poorly understood as a result of GMOs, pesticides, herbicides, pumping chicken, pork, and beef full of antibiotics and hormones and feeding the animals GMO grains and also possibly infected animal byproducts, and pumping our water full of fluoride. A variety of destructive activities and behaviors are causing ecological damage. Longevity might have been a short-term benefit of irreproducible conditions considering the mounting ecological damage and the rise of superbugs, stress, and tainted food and water production.
The projection of an aging population might also be wrong. Clearly, the post-World War II baby boomers are aging, but do the projections take into account the legislated 1965 immigration increases plus the illegal influx from Mexico and points south of young people with high birth rates? How can it be that a country with allegedly 30 million illegal immigrants, whose children born in the US are citizens, has a declining birth rate? How do we know that the illegal population will not continue to increase?
There are so many Spanish speaking people in the US today that if a person calls any of his utility companies, whether telephone, Internet, water, electricity, TV, or any of his credit card companies, or his bank, he has to select English or Spanish. Obviously, as
anti-immigration sites make clear, the US population is changing in its national origin, and there appears to be no sign of an aging Hispanic population. How many old Spanish speaking people do you see in the US compared to the young?
When confronted with this apparent fact, the response is: “why will the Hispanics pay for the aging white population?” The answer is: because they are in the same payroll tax system and the taxes will be withheld from their wages and salaries just as they are from everyone else’s.
It is possible that if Hispanics in the US have suffered years of hostility, accusations, and hatred from “the ice people,” once Hispanics are sufficiently numerous to control the legislature, assuming one still exists, or to take over the executive branch, the only seat of power, they may in retribution cut off the aging whites. But if so, the whites will have brought it on themselves.
Whatever the scare projections that are mustered to undermine the public provision of old age security, the real financial danger is never mentioned. The only significant financial danger to Social Security and Medicare is the offshoring of American jobs and GDP. A country without a job base is without a payroll tax base. If the only jobs that the 21st century “world’s only superpower” economy can create are for waitresses, bartenders, and health care and social assistance (hospital orderlies and practical nurses), payroll tax revenues will be less than if the US still had 20 million workers and rising in well-paid manufacturing jobs instead of 11 million.
Regardless of Medicare’s financing, the death knell for the elderly was the legality of abortion. If the yet to be born are an insufferable burden, imagine the cost of the elderly. As far as the state is concerned, once you stop producing income and payroll tax revenues for the state, it is time for you to die. Washington would rather enact euthanasia than to pay back the $2+ trillion in the Social Security trust fund that Washington spent, leaving only non-marketable IOUs in the account.
Readers might think that Americans would never stand for death by injection for the elderly once the qualified age is reached. But why would they not? They have accepted millions of aborted babies, and Americans, including the elderly, have stood for Washington’s murder, maiming and displacement of millions of Muslim men, women, and children in 7 countries over the past 11 years and are yet to show any signs of remorse for their complicity in mass murder. Next month tens of millions of Americans will vote for Mitt Romney who believes Obama isn’t killing Muslims fast enough.
The new “Obamneycare” health legislation does have “death panels.” They are not called that, and they do not make formal decisions to terminate lives. But it comes to almost the same thing. Various panels, committees, or bureaucratic departments are empowered to make decisions about “effective care.” It has long been known that most health care costs are associated with the last year of life. Cost and age will be elements in determining standards of care. The greater the weight assigned to cost, the more care will be withheld. In effect, the “effective care” panel is a “death panel.”
Prior to the advent of the new “health care” system, Medicare and or hospitals are already shifting costs to Medicare patients. To avoid penalties and fraud allegations for “medically unnecessary hospitalizations,” rather than formally admit Medicare patients as inpatients, hospital administrators classify them as outpatients “under observation.”
According to a Brown University analysis of Medicare records in 2007, 2008, and 2009, the ratio of Medicare observation patients to those admitted as inpatients rose by 34 percent.
Being classified an outpatient under observation eliminates medicare coverages, especially for post-operative or post-accident rehabilitation care, leaving Medicare patients with bills in the tens of thousands of dollars (AARP Bulletin, October 2012).
Other costs are being shifted to doctors and to hospitals. Medicare pays fixed prices for each covered procedure or test, and these prices can be as low as half of the billed prices. During a period when costs incurred by providers of health care have been rising, Medicare has been cutting the amounts it pays providers.
As the payroll tax is commingled with general tax revenues, Social Security and Medicare payroll tax collections can be diverted to other purposes and, thus, are always subject to competing budgetary demands, such as the previous 11 years of gratuitous wars and the bailouts of “banks too big to fail,” or to deficit reduction demands as the government consistently overspends all revenue sources.
A national health service is the only way to control health costs and provide the population with health care coverage. A national health system takes the many levels of profits out of the system and also reams of compliance and liability costs. A national health system can coexist with a private system for those who can afford it or whose employers are sufficiently profitable to provide it.
As Jarad Diamond reveals in his book, Collapse: How Societies Choose to Fail or Succeed, societies fail, if not because of their moral bankruptcy, then because their rulers are only capable of short-term thinking. The future is beyond their interest. The US offshored its economy, because it worked short-term for corporate executives (rewarded with multi-million dollar performance bonuses), Wall Street (rewarded with profits), shareholders (rewarded with capital gains), and politicians (rewarded with corporate and Wall Street campaign contributions).
Incompetent free market economists confused jobs offshoring with free trade. They said the country would and was benefiting by giving its manufacturing, industrial, and tradable professional service jobs to China and India, that the US was ridding itself of “dirty fingernail jobs” and would soon be flush with highly paid high-tech jobs and highly paid financial service jobs.
None of these promises or predictions were true. Nowhere in the government’s jobs statistics are there any of these promised replacement jobs. The economists who provided cover for the destruction of the US economy were rewarded by the corporations with speaking fees, grants for their university departments, and newspaper columns paid for by corporate advertisers. Those few who told the truth were expelled from the corporate media that Bill and Hilary Clinton allowed to be monopolized (for campaign contributions, of course).
The future of old age security in the United States has been lost, because the job base has been given away to foreigners in order to maximize incomes in the short-run for the few decision-makers.
The misrepresentation of jobs offshoring as free trade has destroyed the prospects of cities, counties, and states along with those of unions and millions of Americans who once had a secure future. It has destroyed the prospects of class after class of university graduates burdened with student loans who expected to step into the jobs that have been offshored or filled by H-1B visa holders from abroad.
The American work force has been forsaken by the corporations and by Washington, and this means that Social Security and Medicare have also been forsaken.
As I predicted in the early years of this new century, “the United States will be a third world country in 20 years.” We might get there even sooner as Washington exhausts what little is left of American wealth in gratuitous wars in service to Israel and the US Military/Security Complex, in unaffordable military buildups in futile hopes of establishing hegemony over China and Russia, and in negative interest rates from the Federal Reserve’s effort to drive up the book value of debt instruments on the balance sheets of financial institutions.
In 1817 Percy Bysshe Shelly forecast America’s future:
“I met a traveler from an antique land
Who said: “Two vast and trunkless legs of stone
Stand in the desert. Near them, on the sand,
Half sunk, a shattered visage lies, whose frown,
And wrinkled lip and sneer of cold command,
Tell that its sculptor well those passions read,
Which yet survive, stampt on these lifeless things,
The hand that mockt them and the heart that fed:
On the pedestal these words appear:
‘My name is Ozymandias, king of kings:
Look on my works, ye Mighty, and despair!’
Nothing beside remains. Round the decay
Of that colossal wreck, boundless and bare
The lone and level sands stretch far away.”
Writing in the October 15 online CounterPunch, John V. Walsh, relying on charts prepared by economics professor Mark J. Perry at the University of Michigan and blogger John Hunter, concludes that it is a myth that US manufacturing is in decline.
Walsh says that the loss of US manufacturing jobs is due to automation, not to offshoring. Think about this for a moment. Perry’s graph on which Walsh relies shows the sharp drop in US manufacturing employment to be a 21st century experience. However, automation has been around for a long time. The notion that its effect on employment only showed up recently needs an explanation that is not provided. The steep drop in US manufacturing employment that began in 2000 does correspond with the date at which jobs offshoring began to bite hard.
Why does automation not also affect Chinese manufacturing, especially as most of the Chinese manufacturing technology came from the US as US corporations offshored their production for the US market? If Chinese manufacturing is not up to date with automation, like the US is assumed to be, how do the Chinese, even with cheap labor, undersell US automated factories? How did Chinese manufacturing employment increase in a mere four years by an amount equal to the total manufacturing employment in the US?
The US Bureau of Economic Analysis shows only 11.2 million full time US manufacturing jobs in 2010. The US Bureau of Labor Statistics shows 11.7 million US manufacturing jobs in 2011, down from 15.3 million in 2002.
In contrast, China, an industrial and manufacturing backwater for most of my life, had 112 million manufacturing jobs in 2006. In a mere four years (2002-2006), the increase in China’s manufacturing employment was as large as today’s total employment in US manufacturing. As long ago as 2006, China’s manufacturing employment was about 10 times the current US manufacturing employment. The Chinese population is about 4 times larger than the US population, but China’s manufacturing population is proportionately greater–10 times larger. Indeed, Chinese manufacturing employees almost equal the total number of employees in all occupations in the US (Manufacturing and Technology News, December 15, 2009).
Obviously, something is wrong with Walsh’s article or the graphs on which he relied.
America’s manufacturing prowess cannot be found in the statistical data. The US is primarily an exporter of Agricultural commodities. The US imports almost twice the amount of manufactured goods as it exports. Indeed, according to the US Census Bureau Statistical Abstract of the US http://www.census.gov/compendia/statab/2012/tables/12s1308.pdf US imports of manufactured goods are 5.5 times larger than US imports of crude oil and 4 times larger than all imports of mineral fuel. Yet, we hear about energy dependency, not manufacturing dependency.
As of 2010 the “superpower” US economy still had a trade surplus in airplanes and airplane parts and a small $6 billion surplus in scientific instruments, but that is about all.
In ADP equipment and office machinery, the US exported $22.2 billion in 2010 (latest information at time of writing), down from $44.6 billion in 2000. US imports in 2010 of ADP equipment and office machinery were $113.5 billion, or 5.1 times exports.
The US cannot even make its own clothes and shoes. In 2010 footwear imports are 28.7 times exports. Clothing imports are 24.6 times exports.
Electrical machinery exports were $77 billion; imports were $120 billion.
Exports of power generating machinery were $33 billion; imports were $42 billion.
Exports of television, VCRs were $21.5 billion; imports were $137 billion.
US exports of vehicles was $88 billion; imports were $179 billion.
US news reports of thousands upon thousands of discharged US workers never cite their replacement by automation. The news story is always that the plant is being closed and the jobs moved abroad. Any review of America’s former manufacturing centers verifies this. Boarded up plants and cities and towns in decline are the remains of America’s formerly world dominant manufacturing economy.
The loss of the US post-war trade surplus in manufacturing has left the US with a huge trade deficit. The charts on which Walsh relied left him unaware of the fact that China has a large trade surplus with the US, and the US has a large trade deficit not only with China but with the world.
The fact that the US has to import not only manufactured goods, but also high-technology products from China, an inconceivable outcome during the second half of the 20th century, is powerful testimony to the decline of the US as a manufacturing powerhouse.
It took some doing to obscure the facts and to present the US as a rival to China in manufacturing prowess. How did it happen?
The fault might lie in the way statistical information is collected and presented. Apple, for example, is a US corporation. It reports its worldwide earnings to the IRS. Its manufacturing is counted as US manufacturing as it is a US corporation. However, Apple doesn’t produce a single computer in the US. They are produced in China. The employment that Apple reports is in China. The Chinese are employed by an American company, but they are not Americans. The Chinese incomes that Apple provides do not support the American consumer market or provide the tax base for cities and states. The Chinese incomes do not provide ladders of upward mobility or careers for Americans.
The wages Apple pays are in China. The consumer incomes and GDP that it generates are in China. When Apple’s computers come back to America to be sold they come in as imports. But Apple’s manufacturing and employment are reported as the output and employment of an American company.
When statistics and the methods by which they are compiled were put into effect, countries did not offshore their production for their domestic markets. Foreign investments were made for selling abroad, not for selling in the home market. With the advent of offshoring, counting the employment and output of US firms that are producing abroad for their domestic market as an indication of the strength of US manufacturing is very misleading. Apple, for example, has done more to boost China’s GDP than to boost America’s GDP. This is true of every US corporation that offshores its production for US consumers.
In recent years the percentage of the work forces of large US corporations that is foreign sourced has risen rapidly. Some of the overseas hiring reflects traditional foreign investment in which a company builds abroad in order to sell abroad, but much of the hiring reflects offshored production for US markets.
The US has been able to survive the large trade deficits produced by jobs offshoring, because the US dollar is the world reserve currency. Being the world reserve currency, the US does not have to earn foreign currencies with exports in order to pay for its imports. However, as these trade deficits persist and the buildup of foreign holdings of dollar paper assets rises, there is a diminishing willingness of foreigners to trade real goods and services for financial assets denominated in a fiat currency whose value is diminishing with the ever-growing supply.
Thus, the basic notion of globalism–that a country’s corporations can produce goods and services in any country for home markets–is false.
Walsh is correct that China is not to blame for the decline in US manufacturing. Offshoring is to blame, and, thus, the blame lies with US corporations, policymakers, and the economists and financial media who shill for “globalism.” The decision was made to sacrifice the US economy to the short-term profits of the few. A country so poorly led can do nothing but decline.
Source: Paul Craig Roberts
Warnings That A Massive Stock Market Crash Is ImminentIn the financial world, the month of October is synonymous with stock market crashes. So will a massive stock market crash happen this year? You never know. The truth is that our financial system is even more vulnerable than it was back in 2008, and financial experts such as Doug Short, Peter Schiff, Robert Wiedemer and Harry Dent are all warning that the next crash is rapidly approaching. We are living in the greatest debt bubble in the history of the world and Wall Street has been transformed into a giant casino that is based on a massive web of debt, risk and leverage. When that web breaks we are going to see a stock market crash that is going to make 2008 look like a Sunday picnic. Yes, the Federal Reserve has tried to prevent any problems from erupting in the financial markets by initiatinganother round of quantitative easing, but 40 billion dollars a month will not be nearly enough to stop the massive collapse that is coming. This will be explained in detail toward the end of the article. Hopefully we will get through October (and the rest of this year) without seeing a stock market collapse, but without a doubt one is coming at some point. Those on the wrong end of the coming crash are going to be absolutely wiped out.
A lot of people focus on the month of October because of the history of stock market crashes in this month. This history was detailed in a recent USA Today article….
When it comes to wealth suddenly disappearing, October can be diabolically frightful. The stock market crash of 1929 that led to the Great Depression occurred in October. So did the 22.6% plunge suffered by the Dow Jones industrial average in 1987 on “Black Monday.”
The scariest 19-day span during the 2008 financial crisis also went down in October, when the Dow plunged 2,675 points after investors fearing a financial collapse went on a panic-driven stock-selling spree that resulted in five of the 10 biggest daily point drops in the iconic Dow’s 123-year history.
So what will we see this year?
Only time will tell.
If a stock market crash does not happen this month or by the end of this year, that does not mean that the experts that are predicting a stock market crash are wrong.
It just means that they were early.
As I have said so many times, there are thousands upon thousands of moving parts in the global financial system. So that makes it nearly impossible to predict the timing of events with perfect precision. Financial conditions are constantly shifting and changing.
But without a doubt another major financial collapse similar to what happened back in 2008 (or even worse) is on the way. Let’s take a look at some of the financial experts that are predicting really bad things for our financial markets in the months ahead….
According to Doug Short, the vice president of research at Advisor Perspectives, the stock market is somewhere between 33% and 51% overvalued at this point. In a recent article he offered the following evidence to support his position….
● The Crestmont Research P/E Ratio (more)
● The cyclical P/E ratio using the trailing 10-year earnings as the divisor (more)
● The Q Ratio, which is the total price of the market divided by its replacement cost (more)
● The relationship of the S&P Composite price to a regression trendline (more)
Peter Schiff, the CEO of Euro Pacific Capital, has been one of the leading voices in the financial community warning people about the crisis that is coming.
During a recent interview with Fox Business, Schiff stated that the massive financial collapse that we witnessed back in 2008 “wasn’t the real crash” and he boldly declared that the “real crash is coming”.
So is Schiff right?
We shall see.
Economist Robert Wiedemer warned people what was coming before the crash of 2008, and now he is warning that what is coming next is going to be even worse….
“The data is clear, 50% unemployment, a 90% stock market drop, and 100% annual inflation . . . starting in 2012.”
Financial author Harry Dent believes that the stock market could fall by as much as 60 percent in the coming months. He is convinced that stocks are hugely overvalued right now….
“We have the greatest debt bubble in history. We will see a worldwide downturn. And when you are in this type of recessionary environment stocks should be trading at five to seven times earnings.”
So are these guys right?
We shall see.
But I do find it interesting that some of the biggest names in the financial world are currently making moves as if they also believe that a massive financial crisis is coming.
For example, as I have written about previously, George Soros has dumped all of his holdings in banking giants JP Morgan, Citigroup and Goldman Sachs.
Infamous billionaire hedge fund manager John Paulson, the man who made somewhere around 20 billion dollarsbetting against the U.S. housing market during the last financial crisis, is making massive bets against the euro right now.
So where are these financial titans putting their money?
According to the Telegraph, both of these men are pouring enormous amounts of money into gold….
There was also news last week in an SEC filing that both George Soros and John Paulson had increased their investment in SPDR Gold Trust, the world’s largest publicly traded physical gold exchange traded fund (ETF).
Mr Soros upped his stake in the ETF to 884,400 shares from 319,550 and Mr Paulson bought 4.53m shares, bringing his stake to 21.3m.
At the current price of about $156 a share, these are new investments of about $88m of Mr Soros’ cash and more than $700m from Mr Paulson’s funds. These are significant positions.
So why would they do this?
Why would they pour millions upon millions of dollars into gold?
Well, it would make perfect sense to put so much money into gold if a massive financial crisis was coming.
So is the next financial crisis imminent?
We will see.
Most “financial analysts” that appear in the mainstream media would laugh at the notion that a stock market crash is imminent.
Most of them would insist that everything is going to be perfectly fine for the foreseeable future.
In fact, most of them are convinced that quantitative easing is going to cause stocks to go even higher.
After all, isn’t quantitative easing supposed to be good for stocks?
Didn’t I write an article just last month that detailed how quantitative easing drives up stock prices?
Yes I did.
So how can I be writing now about the possibility of a stock market crash?
Aren’t I contradicting myself?
Not at all.
Let me explain.
The first two rounds of quantitative easing did indeed drive up stock prices. The same thing will happen under QE3, unless the effects of QE3 are overwhelmed by a major crisis.
For example, if we were to see a total collapse of the derivatives market it would render QE3 totally meaningless.
Estimates of the notional value of the worldwide derivatives market range from 600 trillion dollars all the way up to 1.5 quadrillion dollars. Nobody knows for sure how large the market for derivatives is, but everyone agrees that it is absolutely massive.
When we are talking about amounts that large, the $40 billion being pumped into the financial system each month by the Federal Reserve during QE3 would essentially be the equivalent of spitting into Niagara Falls. It would make no difference at all.
Most Americans do not understand what “derivatives” are, so they kind of tune out when people start talking about them.
But they are very important to understand.
Essentially, derivatives are “side bets”. When you buy a derivative, you are not investing in anything. You are just gambling that something will or will not happen.
I explained this more completely in a previous article entitled “The Coming Derivatives Crisis That Could Destroy The Entire Global Financial System“….
A derivative has no underlying value of its own. A derivative is essentially a side bet. Usually these side bets are highly leveraged.
At this point, making side bets has totally gotten out of control in the financial world. Side bets are being made on just about anything you can possibly imagine, and the major Wall Street banks are making a ton of money from it. This system is almost entirely unregulated and it is totally dominated by the big international banks.
Over the past couple of decades, the derivatives market has multiplied in size. Everything is going to be fine as long as the system stays in balance. But once it gets out of balance we could witness a string of financial crashes that no government on earth will be able to fix.
Five very large U.S. banks (including Goldman Sachs, JP Morgan and Bank of America) have combined exposure to derivatives in excess of 250 trillion dollars.
Keep in mind that U.S. GDP for 2011 was only about 15 trillion dollars.
So we are talking about an amount of money that is almost inconceivable.
That is why I cannot talk about derivatives enough. In fact, I apologize to my readers for not writing about them more.
If you want to understand the coming financial collapse, one of the keys is to understand derivatives. Our entire financial system has been transformed into a giant casino, and at some point all of this gambling is going to cause a horrible crash.
Do you remember the billions of dollars that JP Morgan announced that they lost a while back? Well, that was caused by derivatives trades gone bad. In fact, they are still not totally out of those trades and they are going to end up losinga whole lot more money than they originally anticipated.
Sadly, that was just the tip of the iceberg. Much, much worse is coming. When you hear of a major “derivatives crisis” in the news, you better run for cover because it is likely that the entire house of cards is about to start falling.
And don’t get too caught up in the exact timing of predictions.
If a stock market crash does not happen this month, don’t think that the storm has passed.
A major financial crisis is coming. It might not happen this week, this month or even this year, but without a doubt it is approaching.
And when it arrives it is going to be immensely painful and it is going to change all of our lives.
I hope you are ready for that.
Source: The Economic Collapse
It is impossible to make up a fantasy tale that rivals the manifestations of the outlandish MF Global scandal. The evaporation of customer’s monies into an intentional off shore stash is tragic enough, but the indignity of allowing “no consequences” for a horrific crime against all investors is inexcusable. Jon S. Corzine is a fraudster that screams out for the gallows of justice. The manner of fleecing the public by Wall Street crooks has a clear distinction. Corzine walks while Madoff serves time. The original “Magical Mystery Tour” was a precursor of today’s reality TV shows. Corzine’s version is more a “House of Horrors”.
The lack of definitive disclosure in the MF Global investigation is hampered at every turn. The stonewalling and cover-up is business as usual in the world of special selective prosecution. The frustration shows as Judicial Watch sues SEC, CFTC for Corzine, MF Global docs.
“Judicial Watch said the CFTC acknowledged receiving the group’s FOIA on April 25, 2012, but failed to provide a final reply by the statutory deadline of May 23, 2012. Similarly, the SEC told Judicial Watch it received the FOIA on April 25, 2012, but did not provide a final response by the mandatory deadline date.
The American people deserve to know the truth about what FSOC officials knew about the epic failure of MF Global and when they knew it. But once again, the Obama administration refuses to provide basic information related to its ‘oversight’ of the private sector,” stated Judicial Watch President Tom Fitton.”
Judging from public polls the attitude towards this dramatic crime hits hard at the diminutive confidence level, which goes a long way to cloud the entire financial community. If MF Global is an aberration, what is the problem of conducting an open and thorough probe that holds the thieves that stole customer’s money accountable?
The public deserves answers. The Daily Finance illustrates this sentiment in the article, MF Global: The Hero, the Villain, and the Anticlimax.
“During an online chat The Motley Fool held shortly after publishing our series on The Astonishing Collapse of MF Global, we polled participants on whether they thought criminal charges would be pressed, and if so, against whom: 71% thought someone would be held accountable and sent to prison. Most thought it would be Corzine. Others eyed JPMorgan CEO Jamie Dimon. Some thought a fall guy (or gal) would be found. But the idea that everyone would walk away seemed impossible.
Ten months later, customers are still fighting for their money to be returned, and getting it in pennies rather than pounds. (A recent ruling will return $130 million more from the CME Group (NYS: CME) JPMorgan Chase is onto its next scandal involving customer accounts and the collapse of a brokerage firm. And Corzine, whose hands-on role at MF Global included roaming the trading floors, is considering starting a hedge fund.”
Crime committed among the protectedGoldman Sachs fraternity is a foregone conclusion. Investor Daily offers up an even more disgusting prospect inCorzine’s Next Act After MF Global: A Hedge Fund. It looks like the vanishing of $1.5 billion is not a prohibition to running a new money scheme.
“Amazingly, Corzine’s reputation may be irrevocably tarnished, but the latest reports suggest the ensuing criminal investigation is unlikely to lead to any charges against him. Of course, Corzine himself has yet to be interviewed by federal investigators in the 10 months since they began examining the details of the firm’s downfall, though it’s anticipated he’ll agree to such an interview next month.”
The infectious relationship between the Corzine Cosa Nostra and the Obama administration is sickening. The Goldman Sachs immunity of their crony connections just keeps on coming over at Eric Holder’s Department of Justice. Breitbart cites: “The New York Times reported that Holder’s Justice Department will not be criminally charging Jon Corzine or any MF Global executives in that case either.”The New American expands in an article by Bob Adelmann, Former MF Global CEO Jon Corzine Will Likely Get Off Scot-Free.
“With the investigators passing on pressing for criminal charges to be filed against Corzine, there are several glaring ironies remaining. First, the huge bets that Corzine made with company money, and then with customers’ monies when the company’s funds were depleted, turned out to be profitable after all.
Second, investigators are currently negotiating with O’Brien, the assistant treasurer from Chicago, to waive her Fifth Amendment rights in exchange for immunity for her testimony about what actually happened in those last days.
Finally, rumors are surfacing that Corzine is about to start another investment company, this time a hedge fund where he will manage investors’ funds for them. There will be just one stipulation: they must have bad memories in order to play.”A financial wizard like Corzine puts P. T. Barnum to shame. Who needs to gear up a forgery currency printing press, when people simply turn over their treasure to a confidence artist with Goldman Sachs credentials? Such surreal conduct in the world of Wall Street larceny is rarely so blatant.
A mass exodus from entrusting your funds in third party risk financial instruments should be the logical response. However, in the bizarre environment of derivative deception and compulsory arbitration, the average saver has little security in the return of their capital. Once, farmers’ biggest hazard was the weather. Today hedging your crop with future contracts in a Corzine account incurs far greater risk. When the government ignores the crimes of major political donors and refuses to prosecute or recover stolen money, it promotes an outlaw system for and by connected elites. Such an absence of fair dealing in the Obama tour of duty deserves their own jail sentence.
No doubt, the chief crook on Wall Street is virtually immune from any law that brings lesser mortals to their knees. The latest outrage summed up nicely in “Relieve Goldman Sachs of Their Legal Exposure“, passes with little notice in the establishment media.
“Goldman Sachs got a rare “reverse Wells notice” from the SEC, when they were told that a mortgage-backed securities deal which they earlier heard they would face prosecution for would not net them any civil enforcement. But that was just the beginning. Later in the day, they learned they would not face any prosecution from the Justice Department for the misdealings brought to light in a Senate Permanent Subcommittee on Investigations report a year ago.”
In case you have not heard the details, the Eric Holder, DOJ of criminal protection and selective prosecution, hit a new low.
“In a written statement, the department said it conducted an exhaustive investigation of allegations brought to light by a Senate panel investigating the 2008-2009 financial crisis.
“The department and investigative agencies ultimately concluded that the burden of proof to bring a criminal case could not be met based on the law and facts as they exist at this time,” the department said.”
TARP was designed to bail out the insolvent banks. Goldman Sachs transformed itself into a BANK so that the firm could borrow from the Fed window. The revolving door cycle of government regulators, opting for a promotion as an investment bankster and compensatory profit well earned from previous service, hardly gets the attention of the financial community or government oversight. The entire obscene relationship of crony favoritism inevitably leads to a society where the rule of law only applies to the competition.
The definitive “vampire squid” watchdog site, Goldman Sachs 666, is so effective that the Goldman Sachs hires law firm to shut blogger’s site. “The bank has instructed Wall Street law firm Chadbourne & Parke to pursue blogger Mike Morgan, warning him in a recent cease-and-desist letter that he may face legal action if he does not close down his website.” Such excessive efforts to inhibit investigative reporting may seem that the global financial titan is afraid of public scrutiny. However, encouraging it is that the flow of information persists; the deplorable reality is that there is no political will to enforce common law violations.
The slanted regulations are written by Goldman Sachs attorneys and shepherd into law with their lobbyists. Their bought and paid for legislators dutifully do their bidding and eagerly take their campaign contributions. That is why the rejection of holding Goldman Sachs accountable by the Department of Justice is significant.
The incomparable ZeroHedge explains in, Confused Why Goldman Will Face No Criminal Charges? Here’s Why.
“We learned courtesy of Goldman’s 10-Q, that the US justice department will not press criminal charges against Goldman Sachs. This, despite Senator Carl “Shitty Deal” Levin, in one of the most bombastic kangaroo court spectacles on live TV ever, asking for a criminal investigation after the subcommittee he led spent years looking into Goldman, and in which he said Goldman misled Congress and investors.”
The Department of Justice functions to discipline the other guy. Goldman Sachs is the hub of the financial pyramid. When partners are installed on the Federal Reserve or are appointed to Treasury, the money elite contain their grip on their control of the fiat money system. This model dominated by bureaucratic technocrats, runs roughshod over the regulators. The mere notion that any Attorney General will enforce statues is naive, when every administration is bought and paid for by the same moneychangers.
Using the distinctive absurdity of legal rationalization, RT reports:
“The Justice Department said that it had conducted an “exhaustive investigation” into allegations of fraud during the crisis from 2008 to 2009. The probe reportedly uncovered email conversations between employees of Goldman Sachs branding mortgage securities sold to investors as “junk” and “crap”.
Moreover, the probe writes that the bank “used net short positions to benefit from the downturn in the mortgage market, and designed, marketed, and sold CDOs [collateralized debt obligations] in ways that created conflicts of interest with the firm’s clients and at times led to the bank’s profiting from the same products that caused substantial losses for its clients.”
Alas, such illegal conduct is acceptable in the world of politicized injustice. No one gets the judicial breaks and skates the fine line of illegality better then Goldman Sachs. The DoJ operates as a mob lawyer for the accused. Prosecuting the proprietors of the criminal system is taboo.
Accepting this obscenity as normal is frustrating. Until now, no practical legislative, regulatory, administrative, legal or punitive response has seen the light of day to hang the Goldman Sachs pirates from the yardarms. Legal recourse will never provide comprehensive relief or rectify the abuses of this wicked protection racket that keeps Goldman Sachs above justice.
Only a total ban and breakup of the House of Rothschild and all their surrogate entities, can resolve by liquidation the monetary monopoly of debt created finance. Reinstituting Glass-Steagall would be a necessary first measure, but that reenactment alone is mere window dressing on a fraudulent Ponzi scheme.
Goldman Sachs stays one-step ahead of a critical mass meltdown, much of its own creation. The risks taken by this firm do not end with their former partners or current shareowners. This house of cards is entrenched in the IOU pecuniary system. What visibly sets Goldman Sachs apart from the rest of Wall Street is their network of entangling influences in every corner and crack of government, media, business and the courts.
No other financial organization enjoys picking financial policy makers on every level in the process. If Congress cannot get the Department of Justice to follow the law, who can honestly believe that a viable Presidential candidate can buck the Wall Street culture that controls and funds the two party facade?
Tragically, the corruption of corporatist is not confined to crony investment banksters. The legal and court organism that watches over the crooked money machine deserves widespread disrespect for their complicity. Goldman Sachs’ day of reckoning await the wrath of the populace.
And other tales of an empire gone mad…
Afghanistan in the 1980s and 90s … Bosnia and Kosovo in the 1990s … Libya 2011 … Syria 2012 … In military conflicts in each of these countries the United States and al Qaeda (or one of its associates) have been on the same side. 1
What does this tell us about the United States’ “War On Terrorism”?
Regime change has been the American goal on each occasion: overthrowing communists (or “communists”), Serbians, Slobodan Milosevic, Moammar Gaddafi, Bashar al-Assad … all heretics or infidels, all non-believers in the empire, all inconvenient to the empire.
Why, if the enemy is Islamic terrorism, has the United States invested so much blood and treasure against the PLO, Iraq, and Libya, and now Syria, all mideast secular governments?
Why are Washington’s closest Arab allies in the Middle East the Islamic governments of Saudi Arabia, Qatar, Kuwait, Jordan, and Bahrain? Bahrain being the home of an American naval base; Saudi Arabia and Qatar being conduits to transfer arms to the Syrian rebels.
Why, if democracy means anything to the United States are these same close allies in the Middle East all monarchies?
Why, if the enemy is Islamic terrorism, did the United States shepherd Kosovo — 90% Islamist and perhaps the most gangsterish government in the world — to unilaterally declare independence from Serbia in 2008, an independence so illegitimate and artificial that the majority of the world’s nations still have not recognized it?
Why — since Kosovo’s ruling Kosovo Liberation Army (KLA) have been known for their trafficking in women, heroin, and human body parts (sic) — has the United States been pushing for Kosovo’s membership in NATO and the European Union? (Just what the EU needs: another economic basket case.) Between 1998 and 2002, the KLA appeared on the State Department terrorist list, remaining there until the United States decided to make them an ally, due in no small part to the existence of a major American military base in Kosovo, Camp Bondsteel, well situated in relation to planned international oil and gas pipelines coming from the vast landlocked Caspian Sea area to Europe. In November 2005, following a visit to Bondsteel, Alvaro Gil-Robles, the human rights envoy of the Council of Europe, described the camp as a “smaller version of Guantánamo”. 2
Why, if the enemy is Islamic terrorism, did the United States pave the way to power for the Libyan Islamic rebels, who at this very moment are killing other Libyans in order to institute a more fundamentalist Islamic state?
Why do American officials speak endlessly about human rights, yet fully support the Libyan Islamic rebels despite the fact that Doctors Without Borders suspended its work in prisons in the Islamic-rebel city of Misurata because torture was so rampant that some detainees were brought for care only to make them fit for further interrogation? 3
Why is the United States supporting Islamic Terrorists in Libya and Syria who are persecuting Christians?
And why, if the enemy is Islamic terrorism, did US Ambassador to the UN, Susan Rice — who daily attacks the Syrian government on moral grounds — not condemn the assassination of four Syrian high officials on July 18, in all likelihood carried out by al Qaeda types? RT, the Russian television channel broadcast in various parts of the United States, noted her silence in this matter. Does anyone know of any American media that did the same?
So, if you want to understand this thing called United States foreign policy … forget about the War on Terrorism, forget about September 11, forget about democracy, forget about freedom, forget about human rights, forget about religion, forget about the people of Libya and Syria … keep your eyes on the prize … Whatever advances American global domination. Whatever suits their goals at the moment. There is no moral factor built into the DNA of US foreign policy.
Bring back the guillotine
In July, the Canadian corporation Enbridge, Inc. announced that one of its pipelines had leaked and spilled an estimated 1,200 barrels of crude oil in a field in Wisconsin. Two years ago, an Enbridge pipeline spilled more than 19,000 barrels in Michigan. The Michigan spill affected more than 50 kilometers of waterways and wetlands and about 320 people reported medical symptoms from crude oil exposure. The US National Transportation Safety Board said that at $800 million it was the costliest onshore spill cleanup in the nation’s history. The NTSB found that Enbridge knew of a defect in the pipeline five years before it burst. According to Enbridge’s own reports, the company had 800 spills between 1999 and 2010, releasing close to 7 million gallons of crude oil. 4
No executive or other employee of Enbridge has been charged with any kind of crime. How many environmental murderers of modern times have been punished?
During a period of a few years beginning around 2007, several thousand employees of stock brokers, banks, mortgage companies, insurance companies, credit-rating agencies, and other financial institutions, mainly in New York, had great fun getting obscenely rich while creating and playing with pieces of paper known by names like derivatives, collateralized debt obligations, index funds, credit default swaps, structured investment vehicles, subprime mortgages, and other exotic terms, for which, it must be kept in mind, there had been no public need or demand. The result has been a severe depression, seriously hurting hundreds of millions of lives in the United States and abroad.
No employee of any of these companies has seen the inside of a prison cell for playing such games with our happiness.
For more than half a century members of the United States foreign policy and military establishments have compiled a record of war crimes and crimes against humanity that the infamous beasts and butchers of history could only envy.
Not a single one of these American officials has come any closer to a proper judgment than going to see the movie “Judgment at Nuremberg”.
Yet, we live in the United States of Punishment for countless other criminal types; more than two million presently rotting their lives away. No other society comes even close to this, no matter how the statistics are calculated. And many of those in American prisons are there for victimless crimes.
On the other hand, we see the Chinese sentencing their citizens to lengthy prison terms, even execution, for environmental crimes.
We have an Iranian court recently trying 39 people for a $2.6 billion bank loan embezzlement carried out by individuals close to the political elite or with their assent. Of the 39 people tried, four were sentenced to hang, two to life in prison, and others received terms of up to 25 years; in addition to prison time, some were sentenced to flogging, ordered to pay fines, and banned from government jobs. 5
And in Argentina in early July, in the latest of a long series of trials of former Argentine officials, former dictator Jorge Rafael Videla was convicted and sentenced to 50 years for a systematic plan to steal babies from women prisoners who were kidnapped, tortured and killed during the military junta’s war on leftist dissenters — the “dirty war” of 1976-83 that claimed 13,000 victims. Many of the women had “disappeared” shortly after giving birth. Argentina’s last dictator, Reynaldo Bignone, was also convicted and got 15 years. Outside the courthouse a jubilant crowd watched on a big screen and cheered each sentence. 6
As an American, how I envy the Argentines. Get the big screen ready for The Mall in Washington. We’ll have showings of the trials of the Bushes and Cheney and Rumsfeld and Obama. And Henry Kissinger, a strong supporter of the Argentine junta among his many contributions to making the world a better place. And let’s not forget the executives of Goldman Sachs, JP Morgan, Bank of America, and Enbridge, Inc. Fining them just money is pointless. We have to fine them years, lots of them.
Without imprisoning these people, nothing will change. That’s become a cliché, but we very well see what continues to happen without imprisonment. And it’s steadily getting worse, financially and imperially.
Items of interest from a journal I’ve kept for 40 years, part VII
- Bantustanning the aboriginals all over the world: The Indians in America, the aboriginals in Australia, the blacks in South Africa, and the Palestinians in Palestine.
- From 1966 tape of President Lyndon Johnson: “I know we oughtn’t to be there [in Vietnam], but I can’t get out.” And he never did. And thousands more troops would die before Johnson left office. (Washington Post, March 12, 2006)
- The Germans had Lebensraum. Americans had Manifest Destiny.
- chinks, gooks, wogs, towelheads, ragheads — some of the charming terms used by American soldiers to describe their foes in Asia and the Middle East
- In June, 2005, Cong. Duncan Hunter (Rep.-CA) held a news conference concerning Guantánamo. Displaying some tasty traditional meals, he said the government spends $12 a day for food for each prisoner. “So the point is that the inmates in Guantánamo have never eaten better, they’ve never been treated better, and they’ve never been more comfortable in their lives than in this situation.” (Scripps Howard News Service, June 28, 2005, Reg Henry column)
- Vice President Dick Cheney: Guantánamo prisoners are well treated. “They’re living in the tropics. They’re well fed. They’ve got everything they could possibly want.” (CNN.com, June 23, 2005)
- “[Defense Secretary Donald] Rumsfeld said Guantánamo’s operations have been more open to scrutiny than any military detention facility in history.” (Associated Press, June 14, 2005)
- “Their ‘coalition of the willing’ [in Iraq] meant the US, Britain, and the equivalent of a child’s imaginary friends.” Paul Loeb, Truthout, June 16, 2005
- Nobody has ever suggested that Serbia attacked or was preparing to attack a member of NATO, and that is the only event which justifies a military reaction under the NATO treaty, such as the 1999 78-day bombing of Serbia.
- Rumsfeld re Chinese military buildup: “Since no nation threatens China, one wonders: Why this growing investment?” (New York Times, June 6, 2005
- Rumsfeld re Venezuelan major weapons buildup: “I don’t know of anyone threatening Venezuela, anyone in this hemisphere.” (Washington Post, October 3, 2006) [Is it possible that the response to both points raised is the same? A country in North America bordering on Mexico?]
- The failure of the United Nations — as an institution and its individual members — to unequivocally oppose and prevent the United States invasion of Iraq in 2003 can well be called “appeasement”.
- The Iraqi Kurds generally sided with Iran during the 1981-88 Iraq-Iran war; helped the United States before and during its bombing of Iraq in 2003 and during its occupation; and most Kurds don’t identify with being Iraqi according to polls.
- One of the military judges at Guantánamo said: “I don’t care about international law. I don’t want to hear the words ‘international law’ again. We are not concerned with international law.” (Democracy Now, April 12, 2005)
- George W. Bush, re al Qaeda types: “Iraqis are sick of foreign people coming in their country and trying to destabilize their country. And we will help them rid Iraq of these killers.” (Baltimore Sun, May 6, 2004)
- “I think all foreigners should stop interfering in the internal affairs of Iraq. Those who want to come and help are welcome. Those who come to interfere and destroy are not.” Paul Wolfowitz, Deputy Secretary of Defense and unindicted war criminal (Chicago Tribune, July 22, 2003)
- Timothy McVeigh, Gulf War veteran who bombed a government building in Oklahoma City in 1995, killing 168 people: “What occurred in Oklahoma City was no different than what Americans rain on the heads of others all the time … The bombing of the Murrah building was not personal, no more than when Air Force, Army, Navy or Marine personnel bomb or launch cruise missiles against government installations and their personnel. … Many foreign nations and peoples hate Americans for the very reasons most Americans loathe me. Think about that.” (McVeigh’s letter to and interview with Rita Cosby, Fox News Correspondent, April 27 2001)
- Douglas Feith, Under Secretary of Defense for Policy and unindicted war criminal: “Defense Department officials don’t lie to the public. … The Defense Department doesn’t do covert action, period.” (Washington Post, February 21, 2002)
- The United States will “deal promptly and properly with the terrible abuses” of Iraqi prisoners by U.S. soldiers. “No country in the world upholds the Geneva Conventions on the laws of armed conflict more steadfastly than does the United States.” Douglas Feith, Boston Globe, May 5, 2004
- “The State Department plans to delay the release of a human rights report that was due out today, partly because of sensitivities over the prison abuse scandal in Iraq, U.S. officials said. One official who asked not to be identified said the release of the report, which describes actions taken by the U.S. government to encourage respect for human rights by other nations, could ‘make us look hypocritical’.” (Los Angeles Times, May 5, 2004)
- In the decades after 1945, as colonial possessions became independent states, it was widely believed that imperialism as a historical phenomenon was coming to an end. However, a new form of imperialism was in fact taking shape, an imperialism not defined by colonial rule but by the global capitalist market. From the outset, the dominant power in this imperialism without colonies was the United States.
- Francis Boyle re the capture and public display of Saddam Hussein: “This is the 21st century equivalent of the Roman Emperor parading the defeated barbarian king before the assembled masses so that they might all shout in unison: Hail Caesar!”
- The US-provided textbooks in Nicaragua after the US-instigated defeat of the Sandinistas in 1990 carefully excluded all mention of Augustino Sandino as a national hero. (Z magazine, November, 1991)
- “Col. David Hogg, commander of the 2nd Brigade of the 4th Infantry Division, said tougher methods are being used to gather the intelligence. On Wednesday night, he said, his troops picked up the wife and daughter of an Iraqi lieutenant general. They left a note: ‘If you want your family released, turn yourself in.’ Such tactics are justified, he said, because, ‘It’s an intelligence operation with detainees, and these people have info.’ They would have been released in due course, he added later. The tactic worked. On Friday, Hogg said, the lieutenant general appeared at the front gate of the U.S. base and surrendered.” (Washington Post, July 28, 2003) [This is illegal under international law; in ordinary parlance we'd call it a kidnapping with ransom; in war, it's the collective punishment of civilians and is forbidden under the Geneva Convention]
- “Never forget that everything Hitler did in Germany was legal.” — Martin Luther King, Jr.
- “Americans, who up until now had been so valued for their pragmatism, have become ideologues, ‘Bolsheviks’ of the Right, as Daniel Cohn-Bendit once described them.” (Jean-Marcel Bouguereau, concerning Iraq, Le Nouvel Observateur, September 8, 2003)
- Six months after its invasion of Iraq, the Bush administration defended its policy on the basis of schools and hospitals opening and strides made in providing water and electricity. (Washington Post, September 25, 2003) — These are all things 12 years of US bombing and sanctions had destroyed.
- For a summary of much of this, see: Peter Dale Scott, “Bosnia, Kosovo, and Now Libya: The Human Costs of Washington’s Ongoing Collusion With Terrorists“, The Asia-Pacific Journal: Japan Focus, August 7, 2011 ↩
- Camp Bondsteel entry on Wikipedia ↩
- Washington Post, January 27, 2012 ↩
- Enbridge entry on Wikipedia; Washington Post, July 29, 2012↩
- Reuters, July 31, 2012 ↩
- Associated Press, July 6, 2012 ↩