Hitting The Thumb Will Not Cure Cancer

It Only Increases The Pain…

Recently my email brought me a message from a local Doctor friend who has been an exemplary example of what an activist for righteousness should be.  He has been inventive and hard working for several decades with a particular emphasis on our educational system.

The headline of the email reads, “Do You Want to Make a Difference?”, “If so, Here’s How to Impact” the judicial system, educational system, abortion, law enforcement, and the 2^nd Amendment.

He suggests Jury Nullification for reforming our courts, distributing flyers to impact abortion and schools, confronting police with the Constitution for supporting the 2^ndAmendment, and letters to radio talk shows, newspaper editors, Mayors, Chiefs of Police, and Sheriffs.  He also supports placing stickers on bumpers, credit cards, currency, clothing, doorways, drink machines, gas pumps, etc.

His final coup d’état is responding to the greeting “How are you?” with “I haven’t had a good day since Obama was elected!”

This man is genuine and sincere.  His efforts are well meaning and directed at evil.  However, he is treating symptoms and ignoring the underlying problem   I have watched and sometimes participated in these same efforts in past decades.  They do not work.  They have enjoyed nominal victories but they have failed to stop or even slow the inexorable progression of tyranny and evil in our nation and around the world.

Former President Bush was and President Obama is a stooge to unseen powers.  Both passed laws and worked at destroying our sovereignty, tyrannizing the populace, and subduing foreign nations.  United States presidential candidates make promises of reform but when they are elected they do the bidding of the power elites who have longtime experience in forcing others to do their bidding.

The under-cover powers that control our elected officials are the real enemies.  It is a conspiracy of long standing that includes clandestine power as well as some of the world’s well known individuals.  The desires of these powerful people are reflected in the often erratic policies of our government.  It is useless to rail at the stooges that get elected to high government positions.  They are selected and controlled often before they run for office.  Until we understand that the entire government is fixed we will make no progress against those who seek to enslave us.

In United States, Christians have been involved in Right Wing endeavors well back into the
Twentieth Century.  They have supported U. S. exceptionalism and often the evil results it has produced.  They have been mesmerized by newspapers and television and have refused to seek or even believe the truth.  They not only work against their own nation but also against the God who created it.

Every day my email contains articles about atrocities against American citizens: immigration, taxation, Constitutional violations, police brutality, farcical educational programs, injustices in government programs, coming collapses, inaccurate press coverage, inflation, Chinese power, Mexican encroachment, national debt, dishonest politicians, Ebola, etc. etc.  Most are atrocious and contain at least an element of truth.

This was my question to my Doctor friend: Why is all this happening and why is it impervious to the strenuous efforts of so many citizens?

He did not respond.

It continues, gentle reader, because the bulk of America’s Christians have accepted a heretical theology that renders them impotent.  It continues because those who resist it have not confronted the actual source of the problem.  It continues because there is no consensus among the resistors.  It continues because there is no real leadership and the constituents are like a herd of cats.

We live in a nation whose citizens consistently vote for politicians that are destroying the nation.

The second part of the question is why is all this happening?

First, the Christian triune God is the one and only sovereign God.  He created the Universe and is in control of all that is in it.  He has brought about this seemingly irreversible plunge into chaos and tyranny and unless He changes His mind, human efforts to reverse it are useless.  Not only will our efforts fail, we will be working against God’s Will and in the process incur His wrath.  Second, the battle cannot be won nor can we achieve a single victory until we begin to work and pray against the forces that plague us.  Attacking symptoms and allowing the genesis to continue without challenge is futile. Third, discernment is a gift God gives to Christians who are in good standing.  When Christians lose their discernment, they need to evaluate their relationship to the One True God.  Fourth, God seeks workers that will bear fruit.  Those who continue to hit themselves on the thumb will be set aside.  Fifth, continued effort to solve our national dilemma by supporting the corrupt system that now exists contributes to the heresy that government is divine and should be responsible for all civic and social ills.  Government is not God.  God has control over His creation and He is allowing our serious dilemma to fester.

We are being torn asunder by forces that most of our population has failed to identify.  Our political system is irreversibly corrupt and attempts to reverse our plunge through that venue are useless.

What to do?

My Doctor friend wants to continue attempting to alert our citizens.

My sister, a smart gal, told me she thinks President George W. Bush really thought he could bring a democratic government to the people of Iraq.  She is somewhat like the Russian citizen who on a train to Siberia told his fellow prisoner that he did not think Stalin knew what was going on.  Attempts to change her mind are futile. She is concerned that if she accepted the truth her friends would laugh at her.  She is typical of many of our citizens

Recently I listened to a talk by Marc Victor, an Arizona Defense Attorney.  He stated that the United States of America is a police state and proceeded to prove his contention.  He told how the Commerce Clause (To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes) in Article 1, Section 8 of the United States Constitution has been construed to allow the federal government to prosecute almost any crime anywhere in the country.  He cited our astounding incarceration rate, the highest per capita in the entire world, and the uncontrolled power of every police officer in the nation.  He said that if you are stopped by a policeman for a traffic violation take the ticket and go; argument might cost you your life.  .

Our recently married son traveled to northern Louisiana to spend the holiday with his wife’s family.  Patty and I booked a room in Clearwater where we spent a few very interesting days in one of the upscale Marriott Hotels.  We were astonished at the variety of people. Several Asians with children, a tall Black man with a handsome White wife and two very well behaved boys. A Muslim and his wife from Ghana, he works with computers in Orlando; couples from Michigan, North Carolina, and several other states.  A man from North Carolina had a son playing in the North Carolina State/ UCF football game (UCF lost).  Several Indian families and several Black families, people from around the world.

Two couples stood out among those we met, they were from Chicago.  A few years ago they moved from Russia.  We talked about the United States and I expressed my concern for the country.  Their impression was opposite to mine.  They disliked Putin contending that he did not care for the Russian people but they were delighted with the U. S. enjoying its freedom and confident in its strength.  As we talked it became apparent that they were judging our nation from a different perspective.  One of the men had lost his grandparents to Stalin’s purges.  They had moved from a totalitarian regime to a nation that still has a large degree of individual freedom.  While I am judging America against the freedom we enjoyed when I was growing up during the 1930s depression, they are enjoying a degree of freedom they have never known.

The entelechy of perspective determines the evaluation of life.  The Triune God of the Bible provides the only true perspective.  Christians must accept the fact that neither they nor the government they elect can control the world.  It is God’s world and He controls it.  Loss of freedom is a Biblical punishment for disobedience and our nation and its people have been and continue to be disobedient.

When we begin to see and accept the truth things will get better.

Do we continue hitting our thumb with the hammer or do we take another tack?

“Our task as Christians is to move ourselves and our society from the realm of curses to the realm of blessings.”  R. J. Rushdoony, “Systematic Theology”, Pg. 1024

The Oil Coup

US-Saudi Subterfuge Send Stocks and Credit Reeling…

U.S. powerbrokers have put the country at risk of another financial crisis to intensify their economic war on Moscow and to move ahead with their plan to “pivot to Asia”.

Here’s what’s happening: Washington has persuaded the Saudis to flood the market with oil to push down prices, decimate Russia’s economy, and reduce Moscow’s resistance to further NATO encirclement and the spreading of US military bases across Central Asia. The US-Saudi scheme has slashed oil prices by nearly a half since they hit their peak in June. The sharp decline in prices has burst the bubble in high-yield debt which has increased the turbulence in the credit markets while pushing global equities into a tailspin. Even so, the roiled markets and spreading contagion have not deterred Washington from pursuing its reckless plan, a plan which uses Riyadh’s stooge-regime to prosecute Washington’s global resource war. Here’s a brief summary from an article by F. William Engdahl titled “The Secret Stupid Saudi-US Deal on Syria”:

“The details are emerging of a new secret and quite stupid Saudi-US deal on Syria and the so-called IS. It involves oil and gas control of the entire region and the weakening of Russia and Iran by Saudi Arabian flooding the world market with cheap oil. Details were concluded in the September meeting by US Secretary of State John Kerry and the Saudi King…

..the kingdom of Saudi Arabia, has been flooding the market with deep discounted oil, triggering a price war within OPEC… The Saudis are targeting sales to Asia for the discounts and in particular, its major Asian customer, China where it is reportedly offering its crude for a mere $50 to $60 a barrel rather than the earlier price of around $100. That Saudi financial discounting operation in turn is by all appearance being coordinated with a US Treasury financial warfare operation, via its Office of Terrorism and Financial Intelligence, in cooperation with a handful of inside players on Wall Street who control oil derivatives trading. The result is a market panic that is gaining momentum daily. China is quite happy to buy the cheap oil, but her close allies, Russia and Iran, are being hit severely…

According to Rashid Abanmy, President of the Riyadh-based Saudi Arabia Oil Policies and Strategic Expectations Center, the dramatic price collapse is being deliberately caused by the Saudis, OPEC’s largest producer. The public reason claimed is to gain new markets in a global market of weakening oil demand. The real reason, according to Abanmy, is to put pressure on Iran on her nuclear program, and on Russia to end her support for Bashar al-Assad in Syria….More than 50% of Russian state revenue comes from its export sales of oil and gas. The US-Saudi oil price manipulation is aimed at destabilizing several strong opponents of US globalist policies. Targets include Iran and Syria, both allies of Russia in opposing a US sole Superpower. The principal target, however, is Putin’s Russia, the single greatest threat today to that Superpower hegemony. (The Secret Stupid Saudi-US Deal on Syria, F. William Engdahl, BFP)

The US must achieve its objectives in Central Asia or forfeit its top-spot as the world’s only superpower. This is why US policymakers have embarked on such a risky venture. There’s simply no other way to sustain the status quo which allows the US to impose its own coercive dollar system on the world, a system in which the US exchanges paper currency produced-at-will by the Central Bank for valuable raw materials, manufactured products and hard labor. Washington is prepared to defend this extortionist petrodollar recycling system to the end, even if it means nuclear war.

How Flooding the Market Adds to Instability

The destructive and destabilizing knock-on effects of this lunatic plan are visible everywhere. Plummeting oil prices are making it harder for energy companies to get the funding they need to roll over their debt or maintain current operations. Companies borrow based on the size of their reserves, but when prices tumble by nearly 50 percent–as they have in the last six months– the value of those reserves falls sharply which cuts off access to the market leaving CEO’s with the dismal prospect of either selling assets at firesale prices or facing default. If the problem could be contained within the sector, there’d be no reason for concern. But what worries Wall Street is that a surge in energy company failures could ripple through the financial system and wallop the banks. Despite six years of zero rates and monetary easing, the nation’s biggest banks are still perilously undercapitalized, which means that a wave of unexpected bankruptcies could be all it takes to collapse the weaker institutions and tip the system back into crisis. Here’s an excerpt from a post at Automatic Earth titled “Will Oil Kill the Zombies?”:

“If prices fall any further, it would seem that most of the entire shale edifice must of necessity crumble to the ground. And that will cause an absolute earthquake in the financial world, because someone supplied the loans the whole thing leans on. An enormous amount of investors have been chasing high yield, including many institutional investors, and they’re about to get burned something bad….. if oil keeps going the way it has lately, the Fed may instead have to think about bailing out the big Wall Street banks once again.” (Will Oil Kill the Zombies?, Raúl Ilargi Meijer, Automatic Earth)

The problem with falling oil prices is not just mounting deflation or droopy profits; it’s the fact that every part of the industry–exploration, development and production — is propped atop a mountain of red ink (junk bonds). When that debt can no longer be serviced or increased, then the primary lenders (counterparties and financial institutions) sustain heavy losses which domino through the entire system. Take a look at this from Marketwatch:

“There’s ‘no question’ that for energy companies with a riskier debt profile the high-yield debt market “is essentially shut down at this stage,” and there are signs that further pain could hit the sector, ” senior fixed-income strategist at U.S. Bank Wealth Management, Dan Heckman told Marketwatch. “We are getting to the point that it is becoming very concerning.” (Marketwatch)

When energy companies lose access to the market and are unable to borrow at low rates, it’s only a matter of time before they trundle off to extinction.

On Friday, the International Energy Agency (IEA) renewed pressure on prices by lowering its estimate for global demand for oil in 2015. The announcement immediately sent stocks into a nosedive. The Dow Jones Industrial Average (DJIA) lost 315 points by the end of the day, while, according to Bloomberg, more than “$1 trillion was erased from the value of global equities in the week”.

The world is awash in cheap petroleum which is wreaking havoc on domestic shale producers that need prices of roughly $70 per barrel to break-even. With West Texas Intermediate (WTI) presently headed south of 60 bucks–and no bottom in sight–these smaller producers are sure to get clobbered. Pension funds, private equity, banks, and other investors who gambled on these dodgy energy-related junk bonds are going to get their heads handed to them in the months ahead.

The troubles in the oil patch are mainly attributable to the Fed’s easy money policies. By dropping rates to zero and flooding the markets with liquidity, the Fed made it possible for every Tom, Dick and Harry to borrow in the bond market regardless of the quality of the debt. No one figured that the bottom would drop out leaving an entire sector high and dry. Everyone thought the all-powerful Fed could print its way out of any mess. After last week’s bloodbath, however, they’re not nearly as confident. Here’s how Bloomberg sums it up:

“The danger of stimulus-induced bubbles is starting to play out in the market for energy-company debt….Since early 2010, energy producers have raised $550 billion of new bonds and loans as the Federal Reserve held borrowing costs near zero, according to Deutsche Bank AG. With oil prices plunging, investors are questioning the ability of some issuers to meet their debt obligations…

The Fed’s decision to keep benchmark interest rates at record lows for six years has encouraged investors to funnel cash into speculative-grade securities to generate returns, raising concern that risks were being overlooked. A report from Moody’s Investors Service this week found that investor protections in corporate debt are at an all-time low, while average yields on junk bonds were recently lower than what investment-grade companies were paying before the credit crisis.” (Fed Bubble Bursts in $550 Billion of Energy Debt: Credit Markets, Bloomberg)

The Fed’s role in this debacle couldn’t be clearer. Investors piled into these dodgy debt-instruments because they thought Bernanke had their back and would intervene at the first sign of trouble. Now that the bubble has burst and the losses are piling up, the Fed is nowhere to be seen.

In the last week, falling oil prices have started to impact the credit markets where investors are ditching debt on anything that looks at all shaky. The signs of contagion are already apparent and likely to get worse. Investors fear that if they don’t hit the “sell” button now, they won’t be able to find a buyer later. In other words, liquidity is drying up fast which is accelerating the rate of decline. Naturally, this has affected US Treasuries which are still seen as “risk free”. As investors increasingly load up on USTs, long-term yields have been pounded into the ground like a tentpeg. As of Friday, the benchmark 10-year Treasury checked in at a miniscule 2.08 percent, the kind of reading one would expect in the middle of a Depression.

The Saudi-led insurgency has reversed the direction of the market, put global stocks into a nosedive and triggered a panic in the credit markets. And while the financial system edges closer to a full-blown crisis every day, policymakers in Washington have remained resolutely silent on the issue, never uttering as much as a peep of protest for a Saudi policy that can only be described as a deliberate act of financial terrorism.

Why is that? Why have Obama and Co. kept their mouths shut while oil prices have plunged, domestic industries have been demolished, and stocks have gone off a cliff? Could it be that they’re actually in cahoots with the Saudis and that it’s all a big game designed to annihilate enemies of the glorious New World Order?

It certainly looks that way.

Will Falling Oil Prices Crash The Markets?

Shale Leads The Way…

Crude oil prices dipped lower on Wednesday pushing down yields on US Treasuries and sending stocks down sharply. The 30-year UST slipped to a Depression era 2.83 percent while all three major US indices plunged into the red. The Dow Jones Industrial Average (DJIA) led the retreat losing a hefty 268 points before the session ended. The proximate cause of Wednesday’s bloodbath was news that OPEC had reduced its estimate of how much oil it would need to produce in 2015 to meet weakening global demand. According to USA Today:

“OPEC lowered its projection for 2015 production to 28.9 million barrels a day, or about 300,000 fewer than previously forecast, and a 12-year low…. That’s about 1.15 million barrels a day less than the cartel pumped last month, when OPEC left unchanged its 30 million barrel daily production quota…

The steep decline in crude price raises fears that small exploration and production companies could go out of business if the prices fall too low. And that, in turn, could cause turmoil among those who are lending to them: Junk-bond purchasers and smaller banks.” (USA Today)

Lower oil prices do not necessarily boost consumption or strengthen growth. Quite the contrary. Weaker demand is a sign that deflationary pressures are building and stagnation is becoming more entrenched. Also, the 42 percent price-drop in benchmark U.S. crude since its peak in June, is pushing highly-leveraged energy companies closer to the brink. If these companies cannot roll over their debts, (due to the lower prices) then many will default which will negatively impact the broader market. Here’s a brief summary from analyst Wolf Richter:

“The price of oil has plunged …and junk bonds in the US energy sector are getting hammered, after a phenomenal boom that peaked this year. Energy companies sold $50 billion in junk bonds through October, 14% of all junk bonds issued! But junk-rated energy companies trying to raise new money to service old debt or to fund costly fracking or off-shore drilling operations are suddenly hitting resistance.

And the erstwhile booming leveraged loans, the ugly sisters of junk bonds, are causing the Fed to have conniptions. Even Fed Chair Yellen singled them out because they involve banks and represent risks to the financial system. Regulators are investigating them and are trying to curtail them through “macroprudential” means, such as cracking down on banks, rather than through monetary means, such as raising rates. And what the Fed has been worrying about is already happening in the energy sector: leveraged loans are getting mauled. And it’s just the beginning…

“If oil can stabilize, the scope for contagion is limited,” Edward Marrinan, macro credit strategist at RBS Securities, told Bloomberg. “But if we see a further fall in prices, there will have to be a reaction in the broader market as problems will spill out and more segments of the high-yield space will feel the pain.”…Unless a miracle happens that will goose the price of oil pronto, there will be defaults, and they will reverberate beyond the oil patch.” (Oil and Gas Bloodbath Spreads to Junk Bonds, Leveraged Loans. Defaults Next, Wolf Ricter, Wolf Street)

The Fed’s low rates and QE pushed down yields on corporate debt as investors gorged on junk thinking the Fed “had their back”. That made it easier for fly-by-night energy companies to borrow tons of money at historic low rates even though their business model might have been pretty shaky. Now that oil is cratering, investors are getting skittish which has pushed up rates making it harder for companies to refinance their debtload. That means a number of these companies going to go bust, which will create losses for the investors and pension funds that bought their debt in the form of financially-engineered products. The question is, is there enough of this financially-engineered gunk piled up on bank balance sheets to start the dominoes tumbling through the system like they did in 2008?

That question was partially answered on Wednesday following OPEC’s dismal forecast which roiled stocks and send yields on risk-free US Treasuries into a nosedive. Investors ditched their stocks in a mad dash for the exits thinking that the worst is yet to come. USTs provide a haven for nervous investors looking for a safe place to hunker down while the storm passes.

Economist Jack Rasmus has an excellent piece at Counterpunch which explains why investors are so jittery. Here’s a clip from his article titled “The Economic Consequences of Global Oil Deflation”:

“Oil deflation may lead to widespread bankruptcies and defaults for various non-financial companies, which will in turn precipitate financial instability events in banks tied to those companies. The collapse of financial assets associated with oil could also have a further ‘chain effect’ on other forms of financial assets, thus spreading the financial instability to other credit markets.” (The Economic Consequences of Global Oil Deflation, Jack Rasmus, CounterPunch)

Falling oil prices typically drag other commodities prices down with them. This, in turn, hurts emerging markets that depend heavily on the sale of raw materials. Already these fragile economies are showing signs of stress from rising inflation and capital flight. In a country like Japan, however, one might think the effect would be positive since the lower yen has made imported oil more expensive. But that’s not the case. Falling oil prices increase deflationary pressures forcing the Bank of Japan to implement more extreme measures to reverse the trend and try to stimulate growth. What new and destabilizing policy will Japan’s Central Bank employ in its effort to dig its way out of recession? And the same question can be asked of Europe too, which has already endured three bouts of recession in the last five years. Here’s Rasmus again on oil deflation and global financial instability:

“Oil is not only a physical commodity bought, sold and traded on global markets; it has also become an important financial asset since the USA and the world began liberalized trading of oil commodity futures…

Just as declines in oil spills over to declines of other physical commodities…price deflation can also ‘spill over’ to other financial assets, causing their decline as well, in a ‘chain like’ effect.

That chain like effect is not dissimilar to what happened with the housing crash in 2006-08. At that time the deep contraction in the global housing sector ( a physical asset) not only ‘spilled over’ to other sectors of the real economy, but to mortgage bonds…and derivatives based upon those bonds, also crashed. The effect was to ‘spill over’ to other forms of financial assets that set off a chain reaction of financial asset deflation.

The same ‘financial asset chain effect’ could arise if oil prices continued to decline below USD$60 a barrel. That would represent a nearly 50 percent deflation in oil prices that could potentially set in motion a more generalized global financial instability event, possibly associated with a collapse of the corporate junk bond market in the USA that has fueled much of USA shale production.” (CounterPunch)

This is precisely the scenario we think will unfold in the months ahead. What Rasmus is talking about is “contagion”, the lethal spill-over from one asset class to another due to deteriorating conditions in the financial markets and too much leverage. When debts can no longer be serviced, defaults follow sucking liquidity from the system which leads to a sudden (and excruciating) repricing event. Rasmus believes that a sharp cutback in Shale gas and oil production could ignite a crash in junk bonds that will pave the way for more bank closures. Here’s what he says:

“The shake out in Shale that is coming will not occur smoothly. It will mean widespread business defaults in the sector. And since much of the drilling has been financed with risky high yield corporate ‘junk’ bonds, the shale shake out could translate into a financial crash of the US corporate junk bond market, which is now very over-extended, leading to regional bank busts in turn.” (CP)

The financial markets are a big bubble just waiting to burst. If Shale doesn’t do the trick, then something else will. It’s just a matter of time.

Rasmus also believes that the current oil-glut is politically motivated. Washington’s powerbrokers persuaded the Saudis to flood the market with petroleum to push down prices and crush oil-dependent Moscow. The US wants a weak and divided Russia that will comply with US plans to increase its military bases in Central Asia and allow NATO to be deployed to its western borders. Here’s Rasmus again:

“Saudi Arabia and its neocon friends in the USA are targeting both Iran and Russia with their new policy of driving down the price of oil. The impact of oil deflation is already severely affecting the Russian and Iranian economies. In other words, this policy of promoting global oil price deflation finds favor with significant political interests in the USA, who want to generate a deeper disruption of Russian and Iranian economies for reasons of global political objectives. It will not be the first time that oil is used as a global political weapon, nor the last.” (CP)

Washington’s strategy is seriously risky. There’s a good chance the plan could backfire and send stocks into freefall wiping out trillions in a flash. Then all the Fed’s work would amount to nothing.

Karma’s a bitch.

Chinese And Japanese Deflationary Economies

The global economy has just hit the wall. Do not underestimate the significance of the Asian downturn. Japan saw a dramatic rebirth after WWII and China was transformed into an industrial powerhouse from the “Free Trade” debacle. Now that the Central Bankers of the world are turning to Japan and China to keep the financial bubble from blowing, the focus pivots to the East. Pushing on a string is no easy task. Nervously, all eyes have to wonder if more debt will prevent the expected crash.

When the British financial press warns about Spreading deflation across East Asia threatens fresh debt crisis, people should listen.

“Deflation is becoming lodged in all the economic strongholds of East Asia. It is happening faster and going deeper than almost anybody expected just months ago, and is likely to find its way to Europe through currency warfare in short order.

China is in effect strapped to the rocketing dollar through its quasi-peg, increasingly a torture machine. George Magnus from UBS says this cannot continue. “What is happening in the property market is the tip of the iceberg for the whole economy. China will have to resort to monetary reflation over the winter, and I think this will include a lower yuan. We are heading into a currency war,” he said.”

The Economist provides the establishment viewpoint of the latest strategy in Deflation, deflated.

“WHEN people think of a large Asian country on the brink of deflation, they probably have Japan in mind. But China, the biggest of them all, is now skirting close to outright falls in prices across a wide swathe of the economy. Producer prices have been declining for nearly three years and consumer price inflation is mired at its lowest level since 2010.

Deflation is rightly feared by central bankers around the world as a most destructive economic force, making debts more expensive in real terms and leading to a vicious cycle of contraction as consumers delay purchases and companies put off investments. Yet the Chinese central bank has been remarkably laid-back about the downward lilt in prices. The most obvious tool in its kit to arrest the slide would be to cut interest rates, but it has not done so since July 2012; the benchmark one-year lending rate remains lofty at 6%. What explains the central bank’s calm in the face of falling prices, and is it making a big mistake?”

This last assessment demonstrates that when the shift in direction was announced, the financial community jumped on the bandwagon to In Change of Strategy, China Cuts Interest Rate.

“China finally admitted it has a growth problem — and that is a big step to getting the global economy back on track.

In cutting rates, China joins the parade of global policy makers who are stepping up their stimulus efforts to support growth. They are filling a void left by the United States Federal Reserve, which just ended a six-year bond-buying campaign that has kept borrowing costs low and has encouraged spending worldwide.”

The admission that a massive infusion to recapitalize the international system requires a new source to finance the retracting economies is significant. It seems that a tag team effort between China and Japan will hit the banking houses from different directions.

Japan Fires Another Shot in Global Currency War is the analysis from the Wall Street Journal.

“The Bank of Japan 8301.TO -1.63%’s surprise move to increase its asset purchases has sent the yen plummeting, with the dollar passing through ¥110 Friday to trade at highs not seen in six years. This is the mechanism through which Japan will try to restore inflation to its perennially stagnating economy. The BOJ describes its actions in terms of boosting domestic growth and pricing power, but the real way it works is to export deflation to the rest of the world – it has been doing this ever since the yen began an 30% decline versus the dollar once “Abenomics” stimulus measures were first floated in the fall of 2012.”

Japan will play the role of the QE Federal Reserve policy and the Chinese will finally slash their interest rates. Such moves are not taken because the global economies are prospering. Looking for actual growth is like Waiting for Godot.

The mystery that faces all economies is when does deflation become impervious to further stimulus? How many more times can the deficits, imbalances and shortfalls be papered or rolled over before a depression ensues.

Japan is already the poster child for negative growth and with the irrational expenditures that China has spent on ghost cities, their reported growth rates are about as valid as a stock buy recommendation from a Wall Street firm that is shorting their own portfolio.

Looking to the orient to pull the world out of a lethargic corporatist spiral is problematic at best. China slowed growth now reported at 7.3 percent is seen as setting the stage that fuels debt and property bubbles. Yet the balance of trade surpluses that China continues to build up against American consumption from their exports has never benefited economic conditions in the United States.

The Dollar Collapse site asks: Most of the World Panics — Is the US Next?

• Will stepped-up debt monetization and interest rate reductions succeed where the past batch failed?
• Can the US remain aloof from the carnage taking place all around it?

As the Asian economies suffer their own version of contraction on the road to a meltdown, who believes that the transnational corporations that have plotted to off shore their production for decades, will ever reverse their strategy and start returning manufacturing back in the US?

Who will buy the ever increasing US Treasury debt if China unwinds? Of course the Federal Reserve will ratchet up and even bigger QE infusion that will result with more zeros to the national debt.

The most effective solution for America is establishing a tax reform that encourages a domestic renaissance and setting tariffs at levels that will reverse the systemic balance of payments deficits. The worldwide deflation has commenced, so start thinking local and not global.

Lies and Liars

Both Good Guys and Bad Guys…

During my four score and five years I have witnessed a series of boggy men created by our elite masters that have horrified the population, allowed the deterioration of our freedom, and destroyed our Constitution. The terrifying phantoms they trotted out were often contrived and bogus.

Communism filled the bill for several decades; then the Russian atomic threat became so real that many citizens constructed shelters. Recently the Muslims have been used to create mainstream fear and hate. As I write this Russian has returned to the demon category and is being castigated by our devious press and media.

A feared enemy is a necessary element for the progression of tyranny and the American people are easily fooled.

Fooling the public is not confined to the government. Dissident truth tellers are guilty a well.

When I began writing regularly a number of years ago I wrote about the power grabs that were becoming regular fare in government circles. These essays were popular and were widely reproduced. As it became apparent that educating the populace was useless; that the problem was not entirely centered in our government; that ample responsibility rested with our citizens; indicting our foolish populace was not popular and my readership and popularity plummeted.

The bogus prophecies that beguile Charismatic Christian circles are eerily similar to many of the fear mongering prognostication written by talented and ambitious truth tellers in patriotic groups; both tend toward dramatic predictions that do not materialize and in the process destroy integrity.

Sensationalism is scintillating and sensational revelations and predictions are broadly popular. Truth is profound to a small number of readers and onerous to the majority. R. J. Rushdoony declares that “—the ability to investigate, denounce, and condemn evil is no guarantee of righteousness”. He compares the deterioration of the Roman Empire to a similar decline in the United States:

“The Romans of old, like Americans today, loved to see evil exposed. They loved to talk about national scandals. Evil is interesting to most people, whereas righteousness is not. At a dinner party, a suddenly disgusted host said, ‘Let’s stop all this talk about scandals and let’s talk about something good for a change!’ The result was a painful silence. No one was interested in talking about righteousness. But freedom rests on righteousness (or justice). Without righteousness freedom perishes.”

I recall the Y2K threat that was almost universally considered serious. Various commentators predicted all kinds of breakdowns but on January 2, 2000 things were mostly normal. For several decades we have been regaled with notices of a stock market crash; hyperinflation; death of the dollar; bank failures, or a depression; nothing really serious has occurred. We have been told that Martial Law was Imminent, that body bags had been purchased, burial vaults stock piled, and that Mexican soldiers or Russians soldiers were active in the United States.

Following are some of the titles of articles published by a popular Libertarian writer and radio host with the year they were published.

The Draft is Coming 2006
By 2010, you and I will no longer be Americans 2008
The Beginning of the End 2008
Pentagon Planning Deployment of Troops in Support of Nationwide Vaccination 2009
Depopulation by Inoculation 2009
The Economic Collapse of 2009
Freedom Loving Americans Headed for FEMA Camps 2012
More False Flags Coming! 2012
Mega Banks Stealing Customer Savings and Homes Prior to Collapse 2012
FEMA Trains with Human Shackles are Real! 2012
The DHS Plan to Convert Malls and Stadiums to FEMA Camps — 2012
Manufactured Presidential Assassination Attempt Expected to Justify Martial Law 2012
The Russians are Coming, The Russians are Coming 2012
WWW III is Right Around the Corner 2012
Nowhere to Run or to Hide From the New Killer Robots 2012
Will Your Family Survive the Coming Tyranny? 2013
The Eight Unfolding Stages of the Great American Genocide 2013
The Government Theft of Retirement Accounts Has Begun 2013
Five Months From the Biggest Depopulation Event in US History 2013
Where Will FEMA Take Your Children? 2013
A Military Coup Will Remove Obama 2013
The Mother of All Conspiracies Aimed At Our Children 2013
The Murdering of Our Daughters 2013
Game Over; Total Collapse is Imminent 2013
They Are Coming for Our Water 2013
The Chinese Military Will Be Knocking On Your Door 2013
The Sides are Forming for the Coming Civil War 2013

These are startling titles that are popular and get the attention of readers. There is often an element of truth but many of the events predicted never materialized and some of them were contrived lies. These titles provide an easy target but there are scores of other writers that use questionable statements to gain readership and popularity. He is not alone.

Charismatic Christian Churches entertain similar startling predictions made by modern day prophets who give the impression that their message comes from God. I have received numerous emails containing warnings given by these Christian oracles that are sent by people who take their words as gospel.

It is a deplorable mendacity to purposely lie to the public as a means of gaining popularity.

Both Christian and secular society should understand that our love for sensation and prurience is a result of our own sinful natures and that the perpetrator needs our cooperation to continue supplying us with evil fantasy. If we are serious about changing our government we must first change ourselves.

The Roman Empire lasted for over 500 years but it slowly deteriorated. Like the United States of America, the Empire began with a love of virtue but ended with a love of evil. Roman citizens, like present day Americans, thought that it was righteous to expose sin and malfeasance in high places. And, like present day Americans, they never understood that righteousness must start with the individual citizen’s obedience to the Law of the Creator; that exposing the sins in government and church would never produce righteous citizens.

Now, gentle reader, the above does not mean that exposing sin in high places is evil. It is not. Freedom is under siege and if we are to win the battle we must know and understand the enemy while realizing that exposing sin in high places will not by itself change our society. Societal change must come with each individual citizen and as individuals seek justice from the Only Source of Justice society will change and so will our government.

Risky Business “Easy Money”

Here we go again.

Last week, the country’s biggest mortgage lenders scored a couple of key victories that will allow them to ease lending standards, crank out more toxic assets, and inflate another housing bubble.  Here’s what’s going on.

On Monday,  the head of the Federal Housing Finance Agency (FHFA), Mel Watt, announced that Fannie and Freddie would slash the minimum down-payment requirement on mortgages from 5 percent to 3 percent while making loans more available to people with spotty credit. If this all sounds hauntingly familiar, it should. It was less than 7 years ago that shoddy lending practices blew up the financial system precipitating the deepest slump since the Great Depression. Now Watt wants to repeat that catastrophe by pumping up another credit bubble. Here’s the story from the Washington Post:

“When it comes to taking out a mortgage, two factors can stand in the way: the price of the mortgage,…and the borrower’s credit profile.”

On Monday, the head of the agency that oversees the mortgage giants Fannie Mae and Freddie Mac outlined … how he plans to make it easier for borrowers on both fronts. Mel Watt, director of the Federal Housing Finance Agency, did not give exact timing on the initiatives. But most of them are designed to encourage the industry to extend mortgages to a broader swath of borrowers.

Here’s what Watt said about his plans in a speech at the Mortgage Bankers Association annual convention in Las Vegas:

Saving enough money for a downpayment is often cited as the toughest hurdle for first-time buyers in particular. Watt said that Fannie and Freddie are working to develop “sensible and responsible” guidelines that will allow them to buy mortgages with down payments as low as 3 percent, instead of the 5 percent minimum that both institutions currently require.”

Does Watt really want to “encourage the industry to extend mortgages to a broader swath of borrowers” or is this just another scam to enrich bankers at the expense of the public?  It might be worth noting at this point that Watt’s political history casts doubt on his real objectives.   According to Open Secrets, among the Top 20 contributors to Watt’s 2009-2010 campaign were Goldman Sachs, Bank of America, Citigroup Inc., Bank of New York Mellon, American bankers Association, US Bancorp, and The National Association of Realtors. (“Top 20 Contributors, 2009-2010“, Open Secrets)

Man oh man,  this guy’s got all of Wall Street rooting for him. Why is that, I wonder? Is it because he’s faithfully executing his office and defending the public’s interests or is it because he’s a reliable stooge who brings home the bacon for fatcat bankers and their brood?

This is such a farce, isn’t it? I mean, c’mon, do you really think that the big banks make political contributions out of the kindness of their heart or because they want something in return?  And do you really think that a guy who is supported by Goldman Sachs has your “best interests” in mind?  Don’t make me laugh.

The reason that Obama picked Watt was because he knew he could be trusted to do whatever Wall Street wanted, and that’s precisely what he’s doing. Smaller down payments and looser underwriting are just the beginning; teaser rates, balloon payments, and liars loans are bound to follow. In fact, there’s a funny story about credit scores in the Washington Post that explains what’s really going on behind the scenes. See if you can figure it out:

“Most housing advocates agree that a bigger bang for the buck would come from having lenders lower the unusually high credit scores that they’re now demanding from borrowers.

After the housing market tanked, Fannie and Freddie forced the industry to buy back billions of dollars in loans. In a bid to protect themselves from further financial penalties, lenders reacted by imposing credit scores that exceed what Fannie and Freddie require. Housing experts say the push to hold lenders accountable for loose lending practices of the past steered the industry toward the highest-quality borrowers, undermining the mission of Fannie and Freddie to serve the broader population, including low- to moderate- income borrowers.

Today, the average credit score on a loan backed by Fannie and Freddie is close to 745, versus about 710 in the early 2000s, according to Moody’s Analytics. And lenders say they won’t ease up until the government clarifies rules that dictate when Fannie and Freddie can take action against them.” (Washington Post)

Can you see what’s going on? The banks have been requiring higher credit scores than Fannie or Freddie.

But why? After all, the banks are in the lending business, so the more loans they issue the more money they make, right?

Right. But the banks don’t care about the short-term dough. They’d rather withhold credit and slow the economy in order to blackmail the government into doing what they want.

And what do they want?

They want looser regulations and they want to know that Fannie and Freddie aren’t going to demand their money back (“put backs”) when they sell them crappy mortgages that won’t get repaid. You see, the banks figure that once they’ve off-loaded a loan to Fannie and Freddie, their job is done.  So, if the mortgage blows up two months later, they don’t think they should have to pay for it. They want the taxpayer to pay for it. That’s what they’ve been whining about for the last 5 years. And that’s what Watt is trying to fix for them. Here’s the story from Dave Dayen:

“Watt signaled to mortgage bankers that they can loosen their underwriting standards, and that Fannie and Freddie will purchase the loans anyway, without much recourse if they turn sour. The lending industry welcomed the announcement as a way to ease uncertainty and boost home purchases, a key indicator for the economy. But it’s actually a surrender to the incorrect idea that expanding risky lending can create economic growth.

Watt’s remarks come amid a concerted effort by the mortgage industry to roll back regulations meant to prevent the type of housing market that nearly obliterated the economy in 2008. Bankers have complained to the media that the oppressive hand of government prevents them from lending to anyone with less-than-perfect credit. Average borrower credit scores are historically high, and lenders make even eligible borrowers jump through enough hoops to garner publicity. Why, even Ben Bernanke can’t get a refinance done! (Actually, he could, and fairly easily, but the anecdote serves the industry’s argument.)

(“The Mortgage Industry Is Strangling the Housing Market and Blaming the Government“, Dave Dayen, The New Republic)

Can you see what a fraud this is?  6 years have passed since Lehman crashed and the scum-sucking bankers are still  fighting tooth-and-nail to unwind the meager provisions that have been put in place to avoid another system-shattering disaster. It’s crazy. These guys should all be in Gitmo pounding rocks and instead they’re setting the regulatory agenda. Explain that to me? And this whole thing about blackmailing the government because they don’t want to be held responsible for the bad mortgages they sold to the GSE’s is particularly irritating. Here’s more from Dave Dayen:

“After the housing market tanked, Fannie and Freddie forced the industry to buy back billions of dollars in loans. In a bid to protect themselves from further financial penalties, lenders reacted by imposing credit scores that exceed what Fannie and Freddie require. ….And lenders say they won’t ease up until the government clarifies rules that dictate when Fannie and Freddie can take action against them.”

So the industry has engaged in an insidious tactic: tightening lending well beyond required standards, and then claiming the GSEs make it impossible for them to do business. For example, Fannie and Freddie require a minimum 680 credit score to purchase most loans, but lenders are setting their targets at 740. They are rejecting eligible borrowers….so they can profit much more from a regulation-free zone down the line.

So, I ask you, dear reader; is that blackmail or is it blackmail?

And what does Watt mean when he talks about “developing sensible and responsible guidelines’ that will allow them (borrowers) to buy mortgages with down payments as low as 3 percent”?

What a joke.  Using traditional underwriting standards, (the likes of which had been used for  the entire post-war period until we handed the system over to the banks) a lender would require a 10 or 20 percent down, decent credit scores, and a job. The only reason Watt wants to wave those requirements is so the banks can fire-up the old credit engine and dump more crap-ass mortgages on Uncle Sam.  That’s the whole thing in a nutshell. It’s infuriating!

Let me fill you in on a little secret: Down payments matter! In fact, people who put more down on a home (who have “more skin in the game”) are much less likely to default.  According to David Battany, executive vice president of PennyMac, “there is a strong correlation between down payments to mortgage default. The risk of default almost doubles with every 1%.”

Economist Dean Baker says the same thing in a recent blog post:

“The delinquency rate, which closely follows the default rate, is several times higher for people who put 5 percent or less down on a house than for people who put 20 percent or more down.

Contrary to what some folks seem to believe, getting moderate income people into a home that they subsequently lose to foreclosure or a distressed sale is not an effective way for them to build wealth, even if it does help build the wealth of the banks.”

(“Low Down Payment Mortgages Have Much Higher Default Rates“, Dean Baker, CEPR)

Now take a look at this chart from Dr. Housing Bubble which helps to illustrate the dangers of low down payments in terms of increased delinquencies:

Data on mortgage delinquencies by downpayment. Source:  Felix Salmon 

“When the mortgage industry starts complaining about the 14 million people who would be denied the chance to buy a qualified mortgage if they don’t have a 5% downpayment, it’s worth remembering that qualified mortgages for people who don’t have a 5% downpayment have a delinquency rate of 16% over the course of the whole housing cycle.” (“Why a sizable down payment is important“, Dr. Housing Bubble)

So despite what Watt thinks,  higher down payments mean fewer defaults, fewer foreclosures, fewer shocks to the market, and greater financial stability.

And here’s something else that Watt should mull over:  The housing market isn’t broken and doesn’t need to be fixed.  It’s doing just fine, thank you very much. First of all, sales and prices are already above their historic trend. Check it out from economist Dean Baker:

“If we compare total sales (new and existing homes) with sales in the pre-bubble years 1993-1995, they would actually be somewhat higher today, even after adjusting for population growth. While there may be an issue of many people being unable to qualify for mortgages because of their credit history, this does not appear to be having a negative effect on the state of market. Prices are already about 20 percent above their trend levels.” (“Total Home Sales Are At or Above Trend“, Dean Baker, CEPR)

Got it? Sales and prices are ALREADY where they should be, so there’s no need to lower down payments and ease credit to start another orgy of speculation. We don’t need that.

Second, the quality of today’s mortgages ARE BETTER THAN EVER, so why mess with success? Take a look at this from Black Knight Financial Services and you’ll see what I mean:

“Today, the Data and Analytics division of Black Knight Financial Services … released its November Mortgage Monitor Report, which found that loans originated in 2013 are proving to be the best-performing mortgages on record…..

“Looking at the most current mortgage origination data, several points become clear,” said Herb Blecher, senior vice president of Black Knight Financial Services’ Data & Analytics division. “First is that heightened credit standards have resulted in this year being the best-performing vintage on record. Even adjusting for some of these changes, such as credit scores and loan-to-values, we are seeing total delinquencies for 2013 loans at extremely low levels across every product category.”

(“Black Knight Financial Services’ Mortgage Performance Data Shows 2013 Loans Best Performing on Record“, LPS)

Okay, so sales and prices are fine and mortgage quality is excellent. So why not leave the bloody system alone? As the saying goes: If it ain’t broke, don’t fix it.

But you know why they’re going to keep tinkering with the housing market. Everyone knows why. It’s because the banks can’t inflate another big-honking credit bubble unless they churn out zillions of shi**y mortgages that they offload onto Fannie and Freddie. That’s just the name of the game: Grind out the product (mortgages), pack it into sausages (securities and bonds), leverage up to your eyeballs (borrow as much as humanly possible), and dump the junk-paper on yield-chasing baboons who think they’re buying triple A “risk free” bonds.

Garbage in, garbage out.  Isn’t this how the banks make their money?

You bet it is, and in that regard things have gotten a helluva a lot scarier since last Wednesday’s announcement that the banks are NOT going to be required to hold any capital against the securities they create from bundles of mortgages.

Huh?

You read that right. According to the New York Times:  “there will be no risk retention to speak of, at least on residential mortgage loans that are securitized.”

But how can that be, after all, it wasn’t subprime mortgages that blew up the financial system (subprime mortgages only totaled $1.5 at their peak), but the nearly $10 trillion in subprime infected mortgage-backed securities (MBS) that stopped trading in the secondary market after a French Bank stopped taking redemptions in July 2007. (a full year before the crisis brought down Lehman Brothers) . That’s what brought the whole rattling financial system to a grinding halt. Clearly, if the banks had had a stake in those shabby MBS— that is, if they were required to set aside 5 or 10 percent capital as insurance in the event that some of these toxic assets went south– then the whole financial collapse could have been avoided, right?

Right. It could have been avoided. But the banks don’t want to hold any capital against their stockpile of rancid assets, in fact, they don’t want to use their own freaking money at all, which is why 90 percent of all mortgages are financed by Uncle Sugar. It’s because the banks are just as broke as they were in 2008 when the system went off the cliff. Here’s a summary from the New York Times:

“Once upon a time, those who made loans would profit only if the loan were paid back. If the borrower defaulted, the lender would suffer.

That idea must have seemed quaint in 2005, as the mortgage lending boom reached a peak on the back of mushrooming private securitizations of mortgages, which were intended to transfer the risk away from those who made the loans to investors with no real knowledge of what was going on.

Less well remembered is that there was a raft of real estate securitizations once before, in the 1920s. The securities were not as complicated, but they had the same goal — making it possible for lenders to profit without risking capital.

The Dodd-Frank Act of 2010 set out to clean that up. Now, there would be “risk retention.” Lenders would have to have “skin in the game.” Not 100 percent of the risk, as in the old days when banks made mortgage loans and retained them until they were paid back, but enough to make the banks care whether the loans were repaid.

At least that was the idea. The details were left to regulators, and it took more than four years for them to settle on the details, which they did this week.

The result is that there will be no risk retention to speak of, at least on residential mortgage loans that are securitized.

“…..Under Dodd-Frank, the general rule was to be that if a lender wanted to securitize mortgages, that lender had to keep at least 5 percent of the risk…….But when the final rule was adopted this week, that idea was dropped.”  (“Banks Again Avoid Having Any Skin in the Game”, New York Times)

No skin in the game, you say?

That means the taxpayer is accepting 100 percent of the risk. How fair is that?

Let’s review: The banks used to lend money to creditworthy borrowers and keep the loans on their books.

They don’t do that anymore, in fact, they’re not really banks at all, they’re just intermediaries who sell their loans to the USG or investors.

This arrangement has changed the incentives structure. Now the goal is quantity not quality.  “How many loans can I churn-out and dump on Uncle Sam or mutual funds etc.” That’s how bankers think now.  That’s the objective.

Regulations are bad because regulations stipulate that loans must be of a certain quality, which reduces the volume of loans and shrinks profits. (Can’t have that!) Therefore, the banks must use their money to hand-pick their own regulators  (“You’re doin’ a heckuva job, Mel”) and ferociously lobby against any rules that limit their ability to issue credit to anyone who can fog a mirror. Now you understand how modern-day banking works.

It would be hard to imagine a more corrupt system.

Mary Poppins, Elizabeth Warren & The American Banking System

When I saw the movie “Saving Mr. Banks” during one of my interminably-long plane rides back from Syria, I liked it so much that I actually went out and bought a copy of the 1964 “Mary Poppins” Disney classic it was based on — the one with Julie Andrews and Dick Van Dyke frolicking across the rooftops of London.

And much to my surprise, I discovered that Mary Poppins might have been one of the world’s first hippies.  Who woulda thought!  And what was even more amazing is that Mary Poppins was one of the first people to warn us about the .

And fortunately for those of us living here in America one hundred years later, Elizabeth Warren has now become the new Mary Poppins — also warning us about the dangers and perfidy of big bankers and big banks.

If only Americans would start paying attention to Elizabeth Warren as much as they paid attention to Julie Andrews!

“Hey, Elizabeth!” I also want to shout on the rooftops like Dick VanDyke, “voters aren’t listening to you!”  Maybe if Disney studios made a movie about you too?  Then maybe voters would finally start to listen.

According to Warren, the American middle class has been absolutely decimated by the banking and credit-card lobbies.

And yet voters still keep falling for all those glossy ads and happy lies that still keep getting pro-big-bank candidates elected to the White House and Congress even though voters can clearly see that they themselves are losing their jobs, having their homes repossessed, becoming slaves to their student loans and getting ripped off bigtime by credit-card debt.  But then I guess that those syrupy ads actually do prove that “A spoonful of sugar helps the medicine go down” after all.

In the heroic country of Iceland, their well-informed voters have vigorously fought back against bankster greed and have even re-written their constitution in order to make lending-bubbles and bank fraud illegal.

But in America, the opposite happens.  Here in America our very own government, the very one that bank lobbyists have chosen for us to elect, is handing over billions of our very own hard-earned dollars to big banks just as fast as it can.  And Congress is always writing new bankruptcy laws that favor banksters over the middle class every time.  Mary Poppins would be livid, of course, but nobody else seems to even notice these days — except for Elizabeth Warren.

And even the Federal Reserve is dancing over the rooftops in glee as it too gives away our money to the banksters just as fast as it possibly can, singing “” as gleefully hands over giant bags of taxpayers’ money to Chase, Bank of America, CitiBank and Goldman Sachs.

And the Federal Reserve’s chim chem cher-ee chummy coverups are going through the roof too.

Plus the Senate just vetoed a bill that would have given students a break from paying up to 12% interest on their college loans too.  According to Warren, “This isn’t complicated.  It’s a choice – a choice that raises a fundamental question about who the United States Senate works for.  Does it work for those who can hire armies of lawyers and lobbyists to protect tax loopholes for billionaires and profits for the big banks?  Or does it work for those who work hard, play by the rules, and are trying to build a future for themselves and their families?”

Not to mention the hidden (and not-so-hidden) fees that banks gleefully charge us customers for no reason at all.

To try to completely understand how banksters and their toadies in Congress and the Department of Justice are robbing the rest of us blind, you just gotta watch this video of Bill Moyers interviewing bank-fraud expert Thomas K. Black.  Seriously.   You really should watch this: 

In this video, Black describes how Obama was elected by the banking industry and how Obama has totally paid back his debt to the banksters by handing them all “get out of jail free” cards.  Is being elected president really worth selling us Americans out to the banksters?  Apparently so.

“There’s no threat to capitalism like capitalists,” continues Black.  “They are destroying its underpinnings.  And when dishonest people gain an advantage in the marketplace, bad ethics drive good ethics out.  This is why we need the rule of law.”  Doesn’t Thomas K. Black sound just like Dick VanDyke, er, I mean Burt the Chimney Sweep here — as Black proposes that it’s high time to sweep clean our banks.

And now let’s talk about America’s ratings on the so-called “Misery Index”.  Apparently America rates higher on the misery charts now than it ever has, even back in the Great Depression — and probably even as high as did Mary Poppins’s 1910 London.  Thanks a lot, banksters.

Isn’t it time that American voters finally join up with Elizabeth Warren and Mary Poppins — and tell big banks and banksters to go “fly a kite!”

PS:  Speaking of money, look how much of it is being spent in the Middle East — and not here at home where it is needed!

According to a recent blog-post at , the first official estimates of the ISIS price tag from the Pentagon showed that, “the costs of intervention between mid-June and late-August was $7.5 million per day.  At that rate, the U.S. has spent on operations against ISIS as of October 8, adding up to about $2.74 billion per year.  The Pentagon has since revised the estimate up to as high as $10 million per day, or $3.65 billion per year.  In reality, both of those numbers are quite likely to be underestimates of what’s to come.”

Looks like the US military is just as bad as the US banksters when it comes to cleaning out America’s pocketbooks — after they both have put us to sleep with false promises and false news .

What we Americans really need to do these days is to once again take Mary Poppins’s advice and “Stay Awake”! 

Stocks Plunge 460 Points On QE Exit

“Financial markets are faced with uncertainty that isn’t going away. The slowdown in Europe is probably in the early innings, the Fed hasn’t begun to raise interest rates, and geopolitical crises seem to pop up by the day.” Jeff Cox, Finance editor, CNBC

Six years of zero rates and trillions of dollars of asset purchases couldn’t stop stocks from falling sharply on Wednesday. All three major indices moved deep into the red, with the Dow Jones leading the pack, dropping an eye-watering 460 points before rebounding nearly 300 points by the end of the session. Risk-free assets, particularly US Treasuries, rallied hard on the flight-to-safety move with the benchmark 10-year Treasury yield slipping to a Depression era 1.87 percent before climbing back above the 2 percent mark. US financials were the worst hit sector, taking it on the chin for 9 percent by mid-day, while Brent crude was soundly walloped, falling to a 47-month low on oversupply and deflation fears. Stock market gains for the year had nearly been wiped out before a miraculous about-face turned Armageddon into a so-so day with survivable losses. Even so, analysts have already started paring back their estimates for 4th quarter growth while traders stocked up on antacid for Thursday’s opening bell.

The proximate cause of Wednesday’s bloodbath was weaker than expected economic data from Europe–which is sliding towards its third recession in five years– droopy retail sales in the US, and a report from Department of Labor showing that wholesale prices for producers are edging closer towards deflation, the opposite of what the Fed is trying to achieve via its aggressive monetary policy.

But the real trigger for the selloff was not the dismal data, but the policies that have been in place since the Financial Crisis of 2008. While the Obama administration has steadily decreased demand by shaving the deficits which provide vital fiscal stimulus for the economy, (On Wednesday, the USG announced the budget deficit fell to $483 billion, the lowest since 2008) the Federal Reserve has been providing trillions of dollars of cheap money to the banks and brokerages. The result of this one-two combo has not only been the biggest transfer of wealth in human history, but also “a fundamental breakdown in the functioning of the global capitalist economy.” As the International Monetary Fund (IMF) noted in a recent paper on the global recovery: “a pickup in investment has not yet materialized…reflecting concerns about low medium-term growth potential and subdued private consumption.” Demand shortfalls in the advanced countries “could lead to sustained global economic weakness over a five-year period.” (IMF report records global economic breakdown, Nick Beams, World Socialist Web Site)

Simply put: The Fed’s policies have made investors richer, but they haven’t created opportunities for recycling profits, which is a critical part of capitalism’s so called virtuous circle. Anemic investment, means less hiring, less spending, weaker demand and slower growth, all of which are visible in today’s sluggish, underperforming economy. Pumping money into financial assets (QE) can fatten the bank accounts of rich speculators, but it doesn’t do jack for the economy. It just creates bubbles that burst in a flurry of panic selling. Here’s more from Larry Elliot at the Guardian:

“Six years after the global banking system had its near-death experience, interest rates are still at emergency levels. Even attaining the mediocre levels of activity expected by the IMF in the developed countries requires central banks to continue providing large amounts of stimulus. The hope has been that copious amounts of dirt-cheap money will find its way into productive uses, with private investment leading to stronger and better balanced growth.

It hasn’t happened like that. Instead, as the IMF rightly pointed out, the money has not gone into economic risk-taking but into financial risk-taking. Animal spirits of entrepreneurs have remained weak but asset prices have been strong. Tighter controls on banks have been accompanied by the emergence of a powerful and largely unchecked shadow banking system. Investors have been piling into all sorts of dodgy-looking schemes, just as they did pre-2007. Recovery, such as it is, is once again reliant on rising debt levels. Central bankers know this but also know that jacking up interest rates would push their economies back into recession. They cross their fingers and hope for the best.” (World leaders play war games as the next financial crisis looms, Larry Elliot, Guardian)

The policies implemented by the Obama administration and Fed have achieved precisely what they were designed to achieve; they’ve enriched the voracious plutocrats who run the system but left everyone else scraping by on less and less. An article in the Washington Post explains what’s going on in greater detail. Here’s a short excerpt from the piece titled “Why is the recovery so weak? It’s the austerity, stupid”:

“Welcome to Austerity U.S.A., where the deficit is back below 3 percent of GDP and growth is still disappointing—which aren’t unrelated facts.

It started when the stimulus ran out. Then state and local governments had to balance their budgets amidst a still-weak economy. And finally, there was the debt ceiling deal with its staggered $2.1 trillion of cuts over the next decade. Add it all up, and there’s been a big fiscal tightening the past few years, something like 4 percent of potential GDP. Indeed, as Paul Krugman points out, real government spending per capita has been falling faster now than any time since the Korean War demobilization. (chart)

And, as you can see above, all this austerity has been hurting GDP growth since 2011. It shows the Hutchins Center’s new “fiscal impact measure,” which looks at how much total government tax-and-spending decisions have helped or harmed growth. The dark blue line is what policy has actually done, and the light blue one is what a neutral policy would have done. So, in other words, if the dark blue line is below the light blue one, like it has the last three years, then policy has subtracted from growth.” (Why is the recovery so weak? It’s the austerity, stupid. Washington Post)

By cutting the deficits, Obama reduced the blood flow to the real economy and weakened demand. That’s what torpedoed the recovery. In contrast, stocks and bonds have done remarkably well, mainly because the Fed pumped $4 trillion into financial assets which was a taken as a greenlight by risk takers everywhere to load up on everything from overpriced equities to low-yield junk. Now, after more than three years without as much as a 10 percent correction, the momentum has shifted, volatility has returned, earnings are looking wobbly, and the fear is palpable. Stocks appear to be headed for a major repricing event. Here’s how investment guru John Hussman sums it up in his Weekly Market Comment:

“Our concerns at present mirror those that we expressed at the 2000 and 2007 peaks, as we again observe an overvalued, overbought, overbullish extreme that is now coupled with a clear deterioration in market internals, a widening of credit spreads, and a breakdown in our measures of trend uniformity…

…it has become urgent for investors to carefully examine all risk exposures. When extreme valuations on historically reliable measures, lopsided bullishness, and compressed risk premiums are joined by deteriorating market internals, widening credit spreads, and a breakdown in trend uniformity, it’s advisable to make certain that the long position you have is the long position you want over the remainder of the market cycle. As conditions stand, we currently observe the ingredients of a market crash.” (The Ingredients of a Market Crash, John P. Hussman, Ph.D., Hussman Funds)

Sounds ominous, doesn’t it? And Hussman is not alone either. The bearish mood on Wall Street is gaining pace even among those who focus more on geopolitical issues than fundamentals, like the Bank for International Settlements’ Guy Debelle who said in an interview on CNBC on Tuesday that he was concerned about the possibility of a “violent” market drop, particularly in bonds.

“If I had told you that there were heightened tensions in the Middle East and Eastern Europe, uncertainty about the turning point in U.S. monetary policy, a succession of strong U.S. job numbers, uncertainty about the future direction of policy in Europe and Japan, as well as increased concern about the strength of the Chinese economy, you would not be expecting that to make for a benign time in financial markets,” Guy Debelle of the BIS said. “But that is what we have seen for much of this year.” (CNBC)

But stocks aren’t cratering because of tensions in the Middle East or Eastern Europe. That’s baloney. And they’re not falling because of decelerating global growth, plunging oil prices or Ebola. They’re falling because no one knows what the heck is going to happen when QE stops at the end of October. That’s what has everyone in a lather.

Keep in mind, that 20 percent of the current market cap (more than $4 trillion) is stock buybacks, that is, corporations that have bought their own shares to juice prices. Do you really think that corporate bosses are going to play as fast and loose after the Fed stops its liquidity injections?

Not on your life. They’re going to pull in their horns and see what happens next. And if things go sideways, (which they very well could) they’re going to cash in and call it a day. That’s going to drive down stock prices and send markets reeling.

Stocks have nearly tripled since March 2009 when the Fed started this “credit easing” fiasco. So if stocks rode higher on an ocean of Fed liquidity, then how low are they going to go when the spigot is turned off? There are some, like technical strategist Abigail Doolittle, who think the S and P 500 could suffer a major heart attack, dropping as much as 60 percent before equities touch down. Check it out from CNBC:

“(Abigail) Doolittle, founder of Peak Theories Research, has made headlines lately suggesting a market correction worse than anyone thinks is ahead. The long-term possibility, she has said, is a 60 percent collapse for the S&P 500.

In early August, Doolittle was warning both of a looming “super spike” in the CBOE Volatility Index as well as a “death cross” in the 10-year Treasury note.

And so it’s come to pass at least for the VIX, which has jumped 74 percent over the past three months and crossed the 20 threshold that historically has served as a dividing line between complacency and fear. That’s its highest level in nearly two years. From Doolittle’s perspective, the spike represents a bad-news/bad-news scenario … that the near-term selling action is likely to continue and even accelerate…

…she thinks “violent waves of selling action” could send the VIX all the way to 90—even beyond its peak during the financial crisis.” (CNBC)

Now maybe Doolittle is just exaggerating or paranoid, but her conclusions do seem to square with CNN Money. Here’s a clip from yesterday’s article:

“CNNMoney’s Fear & Greed Index is a good indicator of market momentum. Today it hit zero. That’s a huge red flag and showcases extreme fear in the stock market. The only other time the index ever touched that low point is in August 2011 — shortly after Standard & Poor’s downgraded the U.S. debt.

Volatility — or what some are calling “market whiplash” — is clearly back in the market. The VIX, an index that measures volatility and is one of the factors that goes into the Fear & Greed Index — spiked again today. It’s up a whopping 60% in the past week alone.” (Extreme Fear in stock market, CNN Money)

So fear and volatility are back, but liquidity has suddenly gone missing. That sounds like a prescription for disaster to me. So what can we expect in the weeks to come?

Well, more of the same, at least that’s how Pimco’s former chief executive officer Mohamed El Erian sees it. Here’s how he summed it up on Wednesday in a Bloomberg editorial:

“Though unlikely to be as dramatic as today, market volatility can be expected to continue in the days and weeks to come as two forces compete: first, the forced deleveraging of certain investors, particularly overstretched hedge funds registering big October losses; second, central banks scrambling to say all sorts of reassuring things. All of this will serve to reinforce October’s longstanding reputation as a threatening month for investors around the world.” (October’s Wild Ride Isn’t Over Yet, Mohamed A. El-Erian, Bloomberg)

Did he say “forced deleveraging”?

Uh huh. So, after a 6 year bacchanal, the Fed is finally going to take away the punch bowl and force the revelers to pay down their debts, clean up their balance sheets, and take a few less risks. Is that it?

Yep. It sure looks like it. But, that could change in the blink of an eye, after all, the Fed has its friends to think of. Which means that Ms. Yellen could announce QE4 any day now.

The Power Barons: Humanism’s Deities

A recent study by Harvard Business School found that United States corporate executives make over 300 times as much as the average worker.  Based on a $30,000 annual worker income and a 40 hour week the CEO gets $4326.00 an hour while the worker gets $14.42.

In the mid-thirties during the depth of a serious depression executives at General Motors were making 200 times as much as their workers. It was this disparity that helped set the stage for a power shift from the corporate moguls to John L .Lewis  and his CIO (Congress of Industrial Organizations).  John L. Lewis and hundreds of thousands of disgruntled workers succeeded in forcing well-armed and well connected corporate executives to allow collective bargaining which ultimately unionized large portions of the U. S work force.

It was a struggle of epic proportions that bared the fangs of the power elite against the will and leadership of the workers.  It began at the Chevrolet Body Plant in Cleveland, Ohio and spread to Flint, Michigan then to Atlanta, Kansas City, Pontiac, and finally to Detroit itself.  Nearly half a million workers were involved.  At Flint they staged a sit in where the workers sat at their stations day and night.  Machine guns were brought in.  The courts got involved. Finally an injunction was issued.

The strike began on December 28, 1936.  The edict ordered prison sentences and million dollar fines if the strike was not stopped by February 3rd.  Governor Frank Murphy of Michigan called out the National Guard who along with strike breakers armed with clubs and crowbars surround the Flint Plant.

According to William Manchester’s account in “The Glory and the Dream” Governor Murphy was ready to send the bayonets of the National Guard against the workers when at the last moment he called John L. Lewis asking what he should do. Lewis replied, “You want my answer, sir?  I shall personally enter General Motors Chevrolet Plant Number Four.  I shall order the men to disregard your order, to stand fast.  I shall walk up to the largest window in the plant, open it, divest myself of my outer raiment, remove my shirt and bare my bosom.  Then when you order your troops to fire, mine will be the first breast that those bullets will strike.  And as my body falls to the ground, you will listen to the voice of your grandfather as he whispers in your ear, ‘Frank, are you sure you are doing the right thing?’” (Murphy’s grandfather had been hanged in an Irish uprising.)

Fourteen strikers were wounded during the night but Murphy backed down and finally ordered GM not to prevent the strikers from carrying food to the sitting strikers.  With President Roosevelt silent and Governor Murphy aiding the strikers the corporate elites succumbed, signing contracts for collective bargaining.  Unionization spread rapidly into other big corporations.

Globalization was anathema to union workers.  When the rape of United States markets was set in place by our elected officials through ratification of international trade legislation a great burden was placed on unions.  The rush to be competitive in world markets was diametrical to unionism.

Justice is a prerequisite to peace.  When human power is concentrated and not prescribed ghastly actions often result.  God’s overarching legal system provides perfect justice and a necessary restraint; when it is cast off the power swings that marked unions and management replace it.

In our time a more insidious power structure threatens our well-being. For at least a century a systematic plan has been in place to bring the nations of the world under international law.  Nation after nation has been subverted by monstrous, opaque centralized power.  Every major nation of the Western world has been subjected to stealth control. Debt is the weapon.  Since Islam forbids most debt, Muslim nations are harder to conquer.   Military force is necessary and the United States is being used as an instrument of conquest.

Corporate mergers have created behemoths that have little competition and are tyrannical in their own rite. The furtive power seekers are not planning a free society.  Their vision appears to be a controlled environment similar to China.  As economic pressure drains wealth from the United States and oppression ramps up, our standard of living falls, eventually bringing us to par with third world labor.  It is like a 007 movie where James Bond has accepted a bribe to join Blofeld.

Globalization is marred by the illegal procedures used to bring it about.  Wealthy and powerful men and women conspired to burglarize, undermine, and tyrannize the entire population of the world. Their methods are bribery and intimidation and the results of their evil intentions are apparent around the globe.

One wonders if an honest, forthright free-will proposition had been presented to the people of Western Civilization they might have voluntarily participated in bringing the Far Eastern Nations into their economic circle and endorsed an international legal code that would guide global trade.  Conspiracies are sometimes successful but they are wicked and harsh.

Recently, the National Press Club between Bruce Fein, a Ron Paul adviser and resident scholar at the Turkish Coalition of America, and John Yoo,  a wily Korean born Constitutional Lawyer and prominent Bush II adviser. C-Span carried the debate.  Yoo maintained that the increase in the power of the Executive Branch of our government was a result of congressional acquiescence and Fein maintained that it is up to the people to elect officials that will abide by the Constitution.

The contending positons were logical and convincing but as with all of public discourse the core issues were evaded.  No one mentioned the fact the incumbent elected official have the political clout to codify unconstitutional and tyrannical law while continuing to garner enough votes to stay in office.  Yoo claimed that congressional leaders are regularly consulted on Executive Orders and other major closed sessions; no one mentioned that this plotting is inimical to the well-being and health of the nation.

Consider the repercussions if a nuclear bomb had been dropped on the city of Detroit!   Legislation passed by our elected officials has caused similar damage.  In a recent interview a Detroit official said that there are 80,000 derelict homes in the city. They are being demolished in a process that is similar to cleaning up after a major attack.  The destruction of this once great city is a result of the heretical actions of our own government and it has been done without as much as a whimper from our citizens.

Fein was right when he placed responsibility with the people but at this point the statement was mute for not only has the damage been done but our people are still inert and deluded. Because we have forsaken the Creator and cleaved to the creature our delusion has allowed us to sink so far into the quicksand that escape seems improbable.

Rousas Rushdoony writes “To control the god of any system is to control the men within it. The long battle between church and state has this fact at its roots.  Orthodox Christianity gives us a God who is beyond the control of church and state alike.  Hence the God of Scripture has been resented by civil governments, and attempts to subvert orthodox Christianity and its churches have been legion.  The church too often has been restless under so sovereign a God; churchmen too prefer a god who can be put into man’s pocket.”

The citizens of the United States of America worship humanistic gods.  Our deities are designed and controlled by human beings.  These gods, created in human minds, have been in place for most of United States history.

Now the chickens have come home to roost!

Human beings were not created to govern themselves and when the anarchy of human opinion gains leverage over society, absurdity, chaos, and tyranny soon follow.

In the Harvard survey U. S. citizens guessed that corporate executives were making about 30 times the average worker’s wage.   Citizens in other nations made similar errors in estimates.

It is readily apparent that the captain of the ship fills a more important role than a kitchen worker but to accurately measure and quantify that difference is difficult.

What is interesting, however, is that the U. S. tops the world in the size of its wage inequity.  Switzerland is 2nd and Germany is 3rd, both have disparities of about 150 times the average worker or half that of the U. S. Wage inequity is not the only area in which our nation excels:  We incarcerate the larger percentage of our citizens than any other nation in the world (including China and Russia); we have the world’s largest army.  We had the world’s largest economy before the power barons began to dismantle it.  We are probably the most violent nation.  Violence brought the United States independence, violence freed the slaves and preserved the nation, violence conquered the West, it was the instrument of land acquisition, and of efforts to subdue rebels.  Now it is being used to subdue the Muslim world.

When we are too lethargic to stop voting in elections that are rigged and too lazy to verify that our news is mostly propaganda and lies, we have no chance of helping to bring our profligate nation back under the sovereignty of the One True God.

God’s Law provides perfect justice.  Peace is impossible without justice.  When injustice becomes ingrained in a society that society comes under judgment and God’s judgment can be grueling.  If Bruce Fein’s charge to U. S. citizens ever finds fertile ground it must start with Christians.  Christians are required to be the light of the world.  Light reveals what darkness hides.  It is long past time for Christians to discern and reveal the evil that confronts us.

We Failed The History Test

Depression Approaches…

In 1932, the third year of the Great Depression, 25 thousand homeless and destitute WWI veterans and their families camped around Washington, DC urging the government of President Herbert Hoover to make an immediate payment of about $500 which had been authorized by the Adjusted Compensation Act of 1924 but was not due until 1945.  Socialism had no yet grown roots and when these veterans lost their jobs they quickly fell into severe circumstances.  They called themselves the Bonus Expeditionary Force (BEF).

Drew Pearson wrote that they were “ragged, weary, and apathetic”.  Will Rogers said they held, “the record for being the best behaved” of any “hungry men assembled anywhere in the world.”  Though the soldiers and their families had no weapons and could not even be called able bodied the government acted as if it was under siege.

Yes, they were a nuisance.  They stank and some of them begged.  The government spread the rumor that they were Communists.  Business men complained that they hurt business.

Army Chief of Staff General Douglas MacArthur and his assistants Major Dwight Eisenhower and Major George Patton were assigned to rid the city of the vermin.  Eisenhower’s friend Brigadier General George Moseley suggested they arrest the BEF and others “of inferior blood” and ship them off to one of the remote Hawaiian Islands where “they could stew in their own filth”.

President Hoover announced that veterans were “entirely of the Communist element” and troops would “put an end to the rioting and defiance of civil authority”. Presently, led by Major Patton, troops of the 3rd Cavalry marched down Pennsylvania Avenue brandishing sabers followed by a machine gun detachment, men from the 12 Infantry, and six tanks.  Major Patton’s cavalry turned and charged directly into the crowd of unarmed protestors shouting “clear our”.  Tear gas was thrown and men women and children began a disorderly flight.  Three children were killed.

The main BEF camp was across the Eleventh Street Bridge.  In spite of the fact the MacArthur had been ordered not to cross the bridge, according to Eisenhower, he defied the order and allowed Patton’s cavalry to march into the camp throwing tear gas and burning everything that was combustible.

William Manchester tells this story at the beginning of his two volumes “The Glory and The Dream”. He writes that “well to do Washingtonians in yachts cruised close to look at the show. And at 11:15 P.M. they had watched Major George S. Patton, Jr. lead his cavalrymen in a final destructive charge.  Among the ragged bonus marchers routed by their sabers was Joseph T. Angelino, who, on September 26, 1918, had won the Distinguished Service Cross in the Argonne Forest for saving the life of a young officer named George S. Patton, Jr.

As the book progresses Manchester supplies the detailed results of the Great Depression. In 1932, stocks listed on the Big Board had lost 80 percent of their value.  General Motors and U. S. Steel were at 8 percent of their 1929 value.  Five thousand banks failed.  The Gross National Product fell from 104 billion dollars to 41 and 273,000 families were evicted from their homes.

Farm prices fell so that it was cheaper to burn corn than to sell it and buy coal.  Thousands of mortgage foreclosures made farm families homeless.  But in spite of the rural catastrophe city dwellers could still not afford .39 cent butter, .21 cent prime rib, or .20 a dozen eggs.

Men left their families and rode freight trains to other town seeking work; they got a free ride but no work.  Some school teachers worked without pay and many schools were closed.  One percent of the population owned 59 percent of the wealth.

While this tragic devastation was in full swing the nation’s newspapers were singing songs of recover. “BUSINESS PULSE BEATING FASTER, factories reopening all over the country”; “BOOM AWAKENS TEXTILE PLANTS IN NEW ENGLAND, capacity production reported in some cities”; “TRADE UPTURN WITHIN 90 DAYS NOW EXPECTED”.  Manchester writes, “Nowhere in any of these newspapers was there mention of the remarkable fact that in the United States of America, the richest country in the world, more than 15 million men were looking for jobs that did not exist.”

The suicide rate tripled and thousands packed union square in New York to hear Communist speakers.  When upstart Franklin D. Roosevelt was elected by a landslide it was noted that the popular vote for Norman Thomas tripled.  In some cities mobs broke into grocery stores and rifled the shelves, state houses were occupied, in Chicago teachers broke into the banks.

Peacenik Henry Ford began to carry a gun.  The moneyed gentry retreated to their country homes and mounted machine guns on their roofs.   The fuse was short and the nation was near anarchy when Roosevelt took over the presidency.

The Great Depression was an effective instrument to increase control over the populace by creating a dependent class.  If that was the goal, it was a great success.  President-elect Franklin D. Roosevelt assumed dictatorial powers with the blessing of many elected officials of both parties.  This situation was dire and volatile.  Roosevelt was able to remove the fuse and to employ an array of Socialist programs that became permanent parts of American life.

Jumping ahead to the present era, the United States of America, formerly the richest country in the world, is now a tyrannical socialist state where millions of citizens depend on government welfare. The current depression is not yet as brutal as its predecessor but in spite of the propaganda that things are getting better millions of Americans remain out of work and millions more are severely under employed.  Now, as then, veterans have become social flotsam and are often treated with suspicion by the government they served.

If severe economic depressions are unavoidable and not intended by devious power centers with ulterior motives, government assistance has been beneficial; so far we have survived without the guillotines of the French Revolution. Martial law would have been imposed long ago if government support had not calmed the populace.  As the strong arms of government keep us from falling it must be noted that the cost of the strength of governments must be paid by its citizens – governments produce nothing..  When the wealth well runs dry the inevitable results of bankruptcy will explode and government will have secured ultimate power.

There are glaring parallels between our current situation and the 1929 debacle.  Depressions http://en.wikipedia.org/wiki/Great_Depression are the products of the Currency Lords.  In the 1930s the money supply was restricted creating a dearth of buying power.  Today, the money supply is being dramatically increased and interest rates are being held at zero or less.  The house of cards will bring inflation followed by depression.

America’s armed forces are attempting to subdue the Muslim world which forbids usury and is less susceptible to the Currency Lords.  This strategy will destroy America and subdue Islam killing two major impediments to world government.

When governments wiggle out from under the dominion of the One True God (Lex Rex) and begins to see themselves in divine terms (Rex Lex) the world begins to march down a deadly road.  It has been marching down that road for several decades and we are beginning to see the mother of all empires in the distance.

The current attempt to subdue the entire continent under a single Rex Lex government is a deadly misadventure that the One True God is allowing because the citizens of the world have forsaken His dominion in favor of the dominion of men.

We are living under a tyrannical government because we have chosen to rule our own lives and to appoint human rulers who rule according to their evil proclivities.  When God’s people begin to humble themselves and seek His Will (obedience to His Law) instead of their own faulty reasoning we will be able to progress toward freedom.

Nations, rulers, leaders, pastors and citizens must attend to the Law of the Creator if we ever expect to see freedom again.

Happy Workers of The Future

Life In 500 Square Feet…

One Hundred and Twenty Thousand results to a Google search on “city is more competitive”.  The oligarchs who currently control our world intend to herd people in cities where inter-city  contests will keep everyone producing at a high level.

Read how this is already being implemented in China.

More and more of the land is falling under government control and hundreds of thousands of homes have been repossessed.  American citizens own fewer homes and less land.  If this scenario is successful the earth will be enjoyed by elite overseers while the proletariat toils and lives in tiny cubicles in crowded cities.

I wrote recently about our connection to land

In his daily devotional books R. J. Rushdoony (These books are tightly connected to daily behavior and provide usable righteousness for the Christian seeker.  Buy them here .)describes Rogation Sunday and its practice by early Americans.  In the evening following Sunday prayer for the harvest “each farmer and his family walked the boundaries of their property and gave thanks for the good earth.  As they walked, the boy of the family was ‘bumped’ against the landmarks, the boundary stone, or against a boundary tree.  If a pond or stream marked the boundary he was ducked into it.  Then the boy who was bumped or ducked was given a small gift.  The purpose of the ‘bumping’ and of the gift was to make the boy remember the boundaries of the land he would someday fall heir to.”

Land plays a primary role in the Biblical narrative.  The occupation of the Promised Land, the events the preceded, and the battles that followed make up a significant part of the Old Testament.  The earth is the Lord’s and it is to be carefully maintained.  He provided land for His people and it was apportioned to the Twelve Tribes.  He provided the Year of Jubilee to provide stability and prevent a permanent centralization of wealth and power.

Borders of land are related to God’s Law – both are meant to restrain.

In some of America’s Western States 80 percent of the land is owned by the Federal Government.  Alaska’s land is mostly government property.  Oil drilling rights are controlled in Washington.  If these rights were released United States would be energy independent.  Reliable sources claim the government owns about 30 percent of the entire United States land mass.

There is evidence that powerful elite bankers may be conspiring to take over large tracts of land as collateral for debt.   As our government obligates our posterity for trillions of dollars of debt some of it could be paid by sacrificing government owned land.  This could be the genesis of the recent squabble over cattle grazing.  .

In His provisions for the lands in ancient Israel God allowed the permanent sales of urban properties but had rural lands returned to their original owners in the year of Jubilee.  Stability was vested in the families than owned and cultivated land.  Though often overlooked it is still the same today; the cultivation of land provides sustenance for the populace of the earth.

Water and food are products of the earth.  They sustain life.  Without food and water death comes quickly.  Control over access to water and food is power over life and death.  The earth belongs to The Lord we are short term custodians.  God tells us that those who do not work should not eat.  It is the ability to produce food that is everyone’s God given right.

Robots are being touted as a means of reducing the need for human labor.  The analyzer failed to address the fate of displaced workers.  As technology replaces human labor a problem develops over the use of displaced workers.  When Wal-Mart replaces cashiers with do-it-yourself checkout stations they realize an additional profit but the displaced cashiers are faced with the emergency of being deprived of their livelihood.

Societies benefit from technical progress and work that benefits the general population is deserving of reward.  However, when technical improvements displace energetic workers the workers must be provided with the means of working to earn food and lodging for themselves and their families.

What is to be done with the leisure time our technical progress is giving us?  For many it will be used for self-indulgence.  Most of us work to provide the necessities of life but constantly pine for leisure time. But if leisure time is not filled with activity we soon hope for something to do.  We were created for activity and when we are full of sleep we crave it.

Wealth provides a person with activity choices.  Some wealthy individuals find productive activities; others waste their time in sinful indulgences.  A few amass wealth consistently over several generations and use this tacit control of human life to manipulate world powers with an objective of world domination.

We are created beings vested with the mandate to live under the Law our Creator has provided.  The Law is not an impediment to our happiness; obedience is the vehicle to righteous, peace, joy, and prosperity.  God brings blessings for obedience and curses for disobedience.

It is not only difficult to experience but hard to believe that the United States of America is being gutted and destroyed on the altar of world government.  Though the mainstream media is complicit and refuses to publish the atrocities the signs are everywhere.  How can airplanes clearly visible to the entire population fly over our nation and spray long trails of an unknown cloud-like substance while the people, the weather channels, and the major news sources never acknowledge their presence?  How can an entire government, 435 congressional representatives, 100 senators, and one president ignore hundreds of engineers and piles of evidence that the 9/11 attack was false flag operation and allow the policies of our government to be based on its authenticity?  And most shocking of all, how can voters continue with confidence to cast ballots for candidates that invariably betray their trust?

U. S. Voters are like battered spouses that continue to return to the battering partner.  It makes no sense to observers but to the voters its must seem like the only alternative.  An intervention is sometimes the only solution – but how?

The United States of America has been filled with alien immigrants whose only interest is to rape its wealth.  It is engaged in constant wars that sap its strength and destroys its youth.   It has been saturated with pornography and bludgeoned into sodomy. For many years its citizens have been exposed to the most aggressive use of incarceration in the entire world.  It has piled up debt that probably cannot be repaid but will enslave its children for generations.  It is home to so many diverse and ineffective religions that the anarchy of secular humanism is helping push it into tyranny.  Liberty has been lost to the lust for power and we now live under a police force that regularly kills citizens that do not obey.

More and more Americans are becoming concerned with our progressive downfall.  They see the clouds of tyranny approaching and they feel the winds of turmoil.  They are beginning to understand that their government has betrayed them and are apprehensive that unseen forces are overshadowing us. But in spite of this approaching avalanche they are unable to discern the hand of God.

During the 1930s in the small towns of Central United States a deep depression afflicted everyone.  We were grateful to be able to eat from a 25 pound bag of oatmeal three times a day.  Men without work hitched rides on railroad trains that took them to other areas where they hoped to find work.  Those who had food to eat shared with the transients who would often do add jobs in payment.

In the little town where I lived an Evangelical pastor was called to our protestant church.  In an effort to bring the congregation closer to the God of the Bible he began having altar calls.  The altar call was too confrontational for the church leaders whose brush with Christianity consisted of a Sunday School Bible studies where God’s Word could be judged by the participants and they could decide whether they believed it or not.  This minister was soon replaced with one who did not upset the status quo.

Before the Evangelical minister left there was a miracle at my mother’s home.  She has been a Methodist all of her life and following my conversion we sometimes discussed religion.  On this particular day she was sitting in her antique platform rocker in the living room when she asked me about conversion.  I said, “The Bible says you must be born again”.  At that very moment there was a knock on the front door.  It was the recently dismissed minister.  He came in and sat down.  In familiar fashion mother said, “Now, Albert, tell the minster what you were telling me.  I did, the minster affirmed it, and Mother said, “I don’t believe I have ever done that”.   We bowed our heads and mother accepted Christ as her Savior.  The minister left without ever mentioning why he had knocked on our door.

Neither my mother nor I made much progress in the Faith since correct Christian theology was not readily available and when it was preached it usually fell on deaf and recalcitrant ears.  We are a nation of nominal Christians whose faith is selfish and sinful.  We say we believe in God and have accepted Christ as our Savior but instead of becoming obedient servants we expect Him to serve us

During the 1930s there was a Christian patina that covered heavy layers of humanism.   My mother was a good, dependable woman.  She had earned a college degree from University of Illinois but with my father out of work and not having today’s labor saving devices she was forced to work hard to keep up our home and keep food on the table.

For a time my father worked in the WPA but for the most part society during the depression was free from government interference.  Nevertheless, a pride-filled humanism had taken over the country and the seeds for our current tyrannical government were beginning to grow.

Evangelical Christianity brings the good news to individuals but when they are converted the lack of a solid theological base leaves them in a moral limbo that fails to bring change to society.  Once our sins are forgiven and we are made new by the Blood of the Savior God seeks obedience as He always has.  The Jews failed to obey God’s commandments and their disobedience broke the Covenant.  All of God’s blessings are the result of obedience to His Law.

God will not long allow an oligarchy of wealthy humanistic elitists to control His creation.  All things work together for good for those who love the Lord and He will bring blessing from this unprecedented quest for world domination.  Unfortunately Christians who have failed to work against encroaching evil will be severely judged and will not see the blessing in store for His faithful servants.

God, Heaven, Hell & Demons: Do They Exist?

Rev. Robert Barron was chagrined, but not entirely surprised when he read Woody Allen’s recent ruminations on ultimate things. To state it bluntly, said Rev. Barron, Woody could not be any bleaker in regard to the issue of meaning in the universe. We live, he said,

“… in a godless and purposeless world. The earth came into existence through mere chance and one day it, along with every work of art and cultural accomplishment, will be incinerated. The universe as a whole will expand and cool until there is nothing left but the void. Every hundred years or so, he continued, a coterie of human beings will be “flushed away” and another will replace it until it is similarly eliminated. So why does he bother making films — roughly one every year? Well, he explained, in order to distract us from the awful truth about the meaninglessness of everything, we need diversions, and this is the service that artists provide.”  (Woody Allen’s Bleak Vision, , Aug. 12, 2014)

Like millions of other evolutionary humanists in rebellion against our Heavenly Father, Woody Allen is a nihilist—a non-person.  The source of his nihilism is the belief that our Heavenly Father is dead and there is no Absolute Truth, that all truth is relative.  According to Eugene (Fr. Seraphim) Rose, nihilism is the basic philosophy of the 20th century:

“It has become, in our time, so widespread and pervasive, has entered so thoroughly and so deeply into the minds and hearts of all men living today, that there is no longer any ‘front’ on which it may be fought.” The heart of this philosophy, he said, was “expressed most clearly by Nietzsche and by a character of Dostoyevsky in the phrase: ‘God is dead, therefore man becomes God and everything is possible.”  (Nihilism: The Root of the Revolution of the Modern Age, )

Rev. Richard Wurmbrand (1909 –2001), a Romanian Christian minister of Jewish descent possesses penetrating insight into nihilism because it was his own philosophy for many years.  But after fourteen years of physical and mental torment in a man-made hell on earth operated by soulless psychopaths, this courageous pastor emerged with an unquenchable love for Jesus Christ and his fellow man.   According to Wurmbrand, nihilism freezes and hardens the souls of its’ dehumanized believers:

“You freeze when you think of yourself as only a complicated product of chemical reactions….You cannot see stars (or your soul) through the microscope or microbes through the telescope.  Men who cannot think rightly come to the conclusion that God does not exist because they cannot find Him through the senses, which are functions of life in the realm of matter.  Senses are not the right means to see God.” (The Answer to the Atheist’s Handbook, Wurmbrand, p. 105)

The common denominators of Allen’s particular form of nihilism as well as those of militant secularism and its’ theological and New Age Eastern oriented counterparts are the denial of the supernatural Triune God and creation ex nihilo, the fall (original sin), man as person because created in the spiritual image of the One God in three Persons, Moral Law, immutable Truth, Jesus Christ God enfleshed, His death and Resurrection, heaven and hell.

Within the secular framework there is also denial of angels and demons, especially of Lucifer as the fallen angel Satan.  Other common denominators are the embrace of the idea of either pre-existing or spontaneously generated evolving matter and energy and mankind collectively dehumanized and reduced to aspects of the evolving universe.   All of these myths are validated by scientism—the instrument of fallen man’s will.

Whether matter and energy are held to be eternally existing or spontaneously generated (Cosmic Egg/Big Bang) matters not since the common point of departure for all worldviews grounded in matter and energy is metaphysical nihilism,

“… This position has been held by philosophers such as Parmenides, Buddha, Advaita Vedantins, and perhaps Kant (according to some interpretations of his transcendental idealism). Blob theory can also be considered very closely aligned with mereological nihilism (there are no parts and wholes). Obviously if metaphysical nihilism is correct, empirical reality is an illusion.” (What is Metaphysical Nihilism? OpenTopia.com)

Concerned creationists have long pointed out that evolutionary scientism is at the heart of the spiritual and moral crisis facing modern man.  A booklet titled The Surrender to Secularism (Cardinal Mindszenty Foundation, 1967) written by Most Rev. Cuthbert O’Gara, former bishop of Yuanling, China, provides a powerful testimony to this truth.  Rev. O’Gara relates the following:

“When the Communist troops over-ran my diocese they were followed in short order by the propaganda corps—the civilian branch of the Red Forces—an organization…more fanatical, then the People’s Army of Liberation itself.  The entire population, city and countryside, was immediately organized into distinctive categories (and) forced to attend the seminar specified for his or her proper category and there (forced to submit) to the official Communist line.   Now what…was the first lesson given to the indoctrinees?  The first, the fundamental, lesson…was man’s descent from the ape—Darwinism!   Darwinism negates God, the human soul, the after-life.  Into this vacuum Communism enters as the be-all and end-all of the intellectual slavery it has created.  In the Red prison in which I was held, the slogan, ‘Bring your mind over to us and all your troubles will end,’ was hammered into the minds of the prisoners with brutal and numbing monotony.  Nothing but a groveling holocaust of the human person can satiate the lust for dominance of Peking’s Red Regime.”  (Article 12: The Quintessential Evolutionist, )

All forms of the evolutionary scientism dominating our modern societies, from the Neo-Darwinism force-fed to our children to militant forms of secularism, occult New Age evolutionary pantheism and their evolutionary theological counterparts, all are variations of metaphysical nihilism demanding a holocaust of the human person:

“It matters little whether we are dealing with Communism, Socialism, Nazism, abortion, the whole secular culture of perversity and death, the exclusion of God from public education, the crisis within the Church, or a whole host of other individual and social agendas – all are intimately related, and have as a powerful causative factor, belief in Darwinian Evolution.” (ibid)

Within the Western civilized world, including America, the idea that everything in the universe reduces to matter and energy is found for example, in the thinking of global NWO socialists, America’s progressive ruling class, the evolutionary ‘Christianity’ of Michael Dowd, the Hindu-pantheism of Teilhard de Chardin, the integral evolutionism of Ken Wilber, the dialectical materialism of Karl Marx, and the 20th century’s murderous dictators, Lenin, Trotsky, Stalin, Hitler, Mao and Pol Pot.

In his article, “Leftism a Radical Faith,” Bruce Riggs notes that much of the political history of the extended twentieth century is that of massive extinctions of citizenries by their dictatorial governments:

“Take the engineered mass starvations, torture chambers, firing squads, and gulags of Lenin and Stalin; Nazi gas chambers; Pol Pot’s Khmer Rouge killing fields; the genocides of Mao’s “Great Leap Forward”; and the tyrannical North Korean Sung dynasty, and one will find that over one hundred million people
have been slaughtered.” (American Thinker, Jan. 1, 2014)

In one way or another, these dictatorial governments systematically dehumanized and murdered millions to create an imagined earthly Eden, said Riggs, and this is clearly irrational.  In this sense, leftist ideology is an atheist religion with the look of a religious inquisition. Klaus Fischer puts it this way:

“[T]otalitarianism represents the twentieth-century version of traditional religiosity; it is in many ways the secular equivalent of the religious life. Unless this crucial point is captured, the quintessential nature of totalitarianism will elude us.” (ibid)

This “totalitarian religiosity” is grounded in metaphysical nihilism and the dehumanization and reduction of mankind to aspects of the evolving universe on a par with slugs, weeds, and apes.  This evil religion continues today as a “scientific,” secular, politico-centric faith,

“….disdainful of theistic beliefs and contemptuous of those who subscribe to them.  It is a faith that, in its historical manifestations, has birthed the murderous tyrannies of the extended twentieth century — tyrannies that have marched under left-wing banners of Marxism, Communism, and National Socialism, or, more generally and descriptively, Coercive Collectivism.” (ibid, Riggs)

As it was for murderous 20th century dictators, so it is for todays’ individual evolutionists that metaphysical nihilism and dehumanization of ‘others’ is liberating, at least during younger years when death is not yet a blip on the radar.  This is  because for the uncreated, liberated autonomous ‘self’ who is the measure of all things and whose life no longer has any ultimate meaning or purpose there is no valid reason why he personally should not do as he wants to do, or why his debauched, even murderous friends should not do what they want to do.  But the nihilism, egotism, lying, perverse license, and sadistic pleasure attained through psychological domination and manipulation of dehumanized ‘dupes’ and their children, all of which nihilists rejoice in during their younger years becomes an unbearable source of  despair, horror, night terrors, dread, and thoughts of murder and suicide with the advent of old age and the approach of death.

God, Heaven, Hell, Souls and Demons:  Do They Exist?

At issue for evolutionary humanists is the existence of the supernatural God of Revelation, the Heavenly Creator who spoke everything into existence ex nihilo.   Does He exist and did He reveal Himself to men or not?    Rebellious evolutionists say no, all that exists is the natural dimension of matter and energy in continuous motion measured by time that may or may not involve the working of a god invented and controlled by man.

However, existence within the natural dimension of space and time is not the only form of existence.  Timeless is the supernatural realm (third heaven) of the eternally existing, omniscient, omnipotent, omnipresent Holy God of Revelation.

There are three heavens.  The first is the immediate sky, or earth’s atmosphere. (Genesis 2:19; 7:3, 23; Psalms 8:8; Deuteronomy 11:17)  The second is the starry heavens or outer space. (Deuteronomy 17:3; Jeremiah 8:2; Matthew 24:29).  The third heaven is outside of time and space, meaning the first and second heavens, thus outside the reach of man’s science.  The timeless heaven is where God and the holy angels and spirits of righteous men in possession of eternal life dwell and to which Paul was taken. (Deuteronomy 10:14; 1 Kings 8:27; Psalms 115:16; 148:4; 2 Cor.12:2)

Furthermore, all people who have had out-of-body experiences by way of near-death or drugs, astral plane travels, or through shamanism for example, can testify to the existence of their own souls as well as of the timeless abode of demons and fallen angels, the “spirits of wickedness under the heavens” (Eph. 6:12) and their chief, “the prince of the powers of the air.” (Eph. 2:2) According to the Apostle Paul, fallen angels thrown down from the third heaven are dispersed in a multitude throughout the first heaven.  It is with this timeless abode of fallen angels and demons that shamans interact and to which astral plane travelers from the time of Nimrod to our own have been visiting. According to Francis Huxley and Jeremy Narby:

“Western observers began participating in shamanistic sessions involving hallucinogenic plants, (and) found, to their astonishment, that they could have experiences similar to those described by shamans.”   ‘Life’ magazine popularized shamanism in a 1957 story, “In Mexico, American banker Gordon Wasson ate psilocybin mushrooms in a session conducted by (a) shaman.”   Wasson described to ‘Life’s’ readers his experience of “flying out of his body.”  Narby and Huxley report that “hundreds of thousands of people read Wasson’s account, and many followed his example.”  (Modern Shamanism: Spirit Contact & Spiritual Progress, James Herrick, p. 17, from “On Global Wizardry, edited by Peter Jones)

When the soul comes out of its’ body, as happened to the Satanist William Schnoebelen, it is immediately within the timeless realm of evil spirits.  According to early Church Fathers, if the soul is that of a faithful believer it will be met by one of Gods’ Holy Angels and escorted to the third heaven.   If not, as was the case with Schnoebelen, it will meet with deceiving, malignant spirits.

William Schnoebelen was a great hardboiled sinner whose damnable transgressions included Satanism and receiving the mark of Satan during an out of body experience.  His autobiography, Lucifer Dethroned, is a gripping and horrifying account of his descent into the darkest, most frightening side of the occult, magick, spell-casting, vampirism, astral travel and Satanism and his subsequent restoration through grace and the love of Jesus Christ.

Bill was a demonically-empowered Druidic high priest, high-order Mason, ordained spiritist minister and Satanist who frequently “went out of his body” into the timeless realm for various reasons.  As he tells it, one night he was “yanked” out of his body and drawn up through the paths of the Tree of Life toward the zone of Binah or Saturn.  His terrifying journey took him to a vast, obsidian trapezoidal shaped temple called the Cathedral of Pain situated in the midst of swirling stars. The inside walls were clear glass,

“…holding back a transparent green fluid.  Floating within the fluid…were hundreds of naked (horribly mutilated) human bodies.  They were all dead, most with expressions of exquisite terror etched in a rictus on their frozen faces.”  Then a pillar of light struck an “obsidian throne,” a sacrificial altar, and out of the light “appeared a huge being…robed in white…”  Mighty wings swept his shoulders.  At one moment the winged being was an incredibly handsome man, the next a “bull” and the next a “woman.” Chanting began in Latin: “Ave Satanas, Rege Satanas (Hail Satan, Satan Rules)”  Then the terrifying being reached out his left hand “and placed it on my forehead….I felt a claw tear into my brow (and) insert itself into my brain like a white-hot poker..”  Then a voice spoke: “Now you are mine forever.”    (p. 157-159)

Schnoebelen was forced to return to the Cathedral of Pain a few more times before turning to Jesus Christ for salvation.  One night he finally got down on his knees and confessed,

“…to the Lord that I was indeed a sinner—perhaps the chiefest of sinners (but) I repented (Luke 15:5) and confessed that Jesus Christ died on the cross for my sins and rose from the dead so that I might have eternal life (Romans 10: 9-10).  I asked Jesus to save me from my sins (Romans 10: 13), and to be the absolute Lord of my life (Romans 12: 1-2)”    Jesus Christ forgave me and set me “free from unbelievable darkness and evil...”   Jesus Christ liberated his demonically oppressed soul.”(p. 315)

All people, including ‘scientifically enlightened’ evolutionary nihilists live in a mysterious world of which we see in part, and that only darkly, because we are imprisoned in the jail of our senses.  But as Schnoebelen, shamanists and practicing occultists such as Carl Jung know, there are all about us and even here on earth powerful, intelligent beings that move so fast we cannot not see them, who emit rays outside the spectrum of our vision and communicate among themselves on a wavelength beyond what man can hear and apprehend, thus they can observe us, inflate our most disordered passions and influence our dreams and thoughts for good or bad.  They can also, by way of telepathy or automatic writing, transmit through someone like Nietzsche or Carl Jung teachings from the demonic realm.

According to the highly celebrated Jung, Philemon, a winged, horned demon, supervised and inspired the writing of the “Seven Sermons to the Dead.”  Jung described the occasion like this:

“The whole house was….crammed full of spirits.   They were packed deep right up to the door, and the air was so thick I could hardly breathe…Then it began to flow out of me, and in the course of three evenings the thing (Septem Sermones ad Mortuos) was written.” (Jung relates how his soul departed into the timeless realm)…the mystical land of the dead (and) soon after the…..’dead’ appeared to me and the result was the Septem Sermones.”   (To Hell and Back, Maurice S. Rawlings, M.D., p.143)

Spirits can, and do, influence the minds of proud evolutionary humanists who then trumpet the nihilistic ideas dropped into their minds as their own brilliant ideas and do the work of devils by leading astray millions of people with their damnable soul-destroying teachings.

Evolutionary seculars and their theological and occult New Age counterparts commit grievous sins and live as if they will never die. But the God of Revelation, heaven, hell, angels and demons exist, and even now, without their knowledge, rebellious nihilists are being prepared to receive the mark of Satan on their foreheads unless they repent.   Before it’s too late, let them learn from the despairing words of other adversaries of Jesus Christ:

“I am suffering the pangs of the damned.”  Talleyrand (ibid, Wurmbrand, p. 158

“Give me laudanum that I may not think of eternity.”  Mirabeau

“I am abandoned by God and man.  I shall go to hell.  Oh Christ, oh Jesus Christ!” Voltaire

“What blood, what murders, what evil counsels have I followed.  I am lost, I see it well.” Charles IX, King of France

“I would give worlds, if I had them, if the Age of Reason (an anti-Christian book) had never been published.  Oh, Lord, help me. Christ, help me.  Stay with me.  It is hell to be left alone.” Thomas Paine

“…I had a feeling that life was ebbing from me.  I felt powerful sensations of dread (then suddenly everything) turned a glowing red.   I saw twisted faces grimacing as they stared down at me (I tried to defend myself but) could no longer shut out the frightful truth: beyond the faces dominating this fiery world were faces of the damned.  I had a feeling of despair….the sensation of horror was so great it choked me.  Obviously I was in Hell itself (and then suddenly) the black silhouette of a human figure began to draw near…a woman…with lipless mouth and in her eyes an expression that sent icy shudders down my back.  She stretched out her arms…and pulled me by an irresistible force (into) a world filled with….sounds of lamentation….I asked the figure…who she was.  A voice answered: “I am death.”  (German actor Curt Jürgen’s, To Hell and Back, pp. 76-77)

Nihilists are lost and spiritually blind— to the reality of the timeless realms, but especially to the third heaven of our Heavenly Father.  So too are they are blind to the reality of their own frozen souls and to the existence of devils all around them for their foolish hearts are darkened (Rom. 1:21) and their thoughts evil (Gn. 6:5).  They are ignorant, guilty, and corrupt.  They have exchanged God’s Revelation for scientism and His Truth and Way for a lie (Rom. 1:25), and their darkened minds are wholly blind to the saving Light of Christ that shines into the hearts of the faithful. (John 8:12)

From his own experience, Eugene Rose believed that a nihilist cannot come to Christ fully until he is first aware of how far he and his society have fallen away from Him, that is, until he has first faced the Nihilism in himself:

“The Nihilism of our age exists in all,” he wrote, “and those who do not, with the aid of God, choose to combat it in the name of the fullness of Being of the living God, are swallowed up in it already. We have been brought to the edge of the abyss of nothingness and, whether we recognize its nature or not, we will, through affinity for the ever-present nothingness within us, be engulfed in it beyond all hope of redemption-unless we cling in full and certain faith (which doubting, does not doubt) to Christ, without Whom we are truly nothing.”  (Nihilism: The Root of the Revolution of the Modern Age, )

“This is the judgment, that the Light has come into the world, and men loved the darkness rather than the Light, for their deeds were evil.”  “For everyone who does evil hates the Light, and does not come to the Light for fear that his deeds will be exposed.… (John 3:19-20)

For all who repent of their sins, combat their nihilism with the aid of God and unite with the faithful who persevere in the Way of Christ, death is merely a doorway to eternal physical life, first in the third heaven for a while, then in a physical Paradise—the earth and heavens renewed and remade in unimaginably wondrous ways.   But for the stubborn, dehumanized nihilist who prefers darkness to Light the approach of old age and death are accompanied by increasing afflictions of the mind—despair, depression, nightmares, inexplicable feelings of dread and horror—because beyond the grave lies only eternal remorse in utter darkness.

The Psychological Trauma of Catastrophe: Gaza’s Children

Despite the on-again, off-again ceasefires between the Palestinian Resistance and Israel, attacks in Gaza have continued. According to 8/10/14 announcement from Tel Aviv, they will continue, doubtlessly as ruthless as ever. After Israel launched the first attack on July 7th, tension continues as an omnipresent essence whirling about the winds of the greatly sought-after Holy land. Bombarded by airstrikes, shelling and bombs, civilians of the Gaza strip are incarcerated in what seems to be a never-ending battle with no escape. Recent reports from numerous sources and journalists describe the weight of the devastation Palestinians have endured in Gaza.

Within the last ten years, Israel has provoked three offensive movements against the Palestinian territory in Gaza: Operation Cast Lead, which began at the end of 2008 and 2009, Operation Pillar of Defense, which last eight days in November 2012, and most recently, Operation Protective Edge, which started on July 7th, 2014. During this period of devastation, homes have been obliterated, nearly two thousands civilians have been killed, and humanitarian resources are extremely limited due to the Israeli blockade. Catastrophic damage has already been done, some irreparable and some of the most important consequences are often overlooked.

According to Dr. Jesse Ghannam, a clinical psychologist working for the United Nations Relief and Works Agency, reported that the rate of Post-Traumatic Stress Disorder among children has doubled since the 2012 Operation Pillar of Defense attack. These children will most likely suffer from mood disorders, anxiety, depression, problems with attachment and develop antisocial personality traits. Children of Gaza who are nine years old have spent whole lives experiencing the terror of ruthless violence.

The UN relief and works agency reported that approximately 270,000 Gazans are taking UN schools as shelters. The organization also calculates that more than 350,000 children need mental health services because of severe and persisting psychological trauma. How can children cope when they witness the loss of their homes and their entire families from a single explosion? These children are witnessing their mothers, fathers, sisters and brothers, friends and neighbors being blown apart with no understanding of why.

Many Gazan children who have survived view life as an inescapable war. There are many psychological principles to consider when assessing the future of these children, psychosocial development being a prominent one. The UN’s Educational, Scientific and Cultural Organization recently stated that about 75% of teachers at primary and secondary levels reported a decline in their students’ academic performance since Operation Pillar of Defense in 2012. Furthermore, Operation Protective Edge has damaged 138 schools, including 89 run by the UNRWA.

IRIN, a UN Humanitarian news and information service, reported that the lack of locations to attend school and lack of education resources leaves students having to wait, prolonging their education with no guarantee of returning. Erica Silverman reported from the 2008-2009 attack that due to the trauma of these children and lack of psychological counseling resources, many are hesitant and anxious about even going to school. Six years later, with two more perennial offenses, these children of Gaza are overwrought. Iyad Zaqut, a psychiatrist managing the UN community mental health programs in the Gaza strip, reports fewer than 100 specialist teachers are treating more than 100,000 children.

The lack of schools, teachers, and school supplies make education for these children a fallacy. In addition to the scarcity of academic availability, many of these schools do not offer mental health services because of the abundance of children suffering from psychological trauma and limited mental health providers. As a result, these children are in dire need of aid which is unattainable. It’s important to consider Maslow’s hierarchy of needs when thinking about these children. These kids do not even have their basic safety and physiological needs met, which are basic human rights which many take for granted. They have nothing but memories of explosions and imprinted images of violence in their minds.

They live in a world they cannot change, that is cruel and violent. Their only solace is uttering the words “Inch’Allah” as they hide with their families and try to avoid the destruction surrounding them. Many of them don’t. Thousands of Palestinians are restricted from leaving Gaza Strip and are confined, condemned by the Israeli agenda with their fate already determined. How can children conceptualize this, what Israeli Prime Minister Benjamen Netanyahu has described as “complicated” yet “justified”?

Children are unable to understand the nature of this ongoing destruction. The children who have witnessed all three of the Israeli offenses are old enough to have reached Concrete Operations of Piaget’s Theory of Cognitive Development. Even so, how can they begin to conceptualize such oppression being justifiable? They don’t. Instead, these children, who are completely traumatized, are taught that survival is retaliating against these forces. The innate human compassion that every single human is born with is drowned with the blood of their people, leaving these children as empty shells, with their only hope to survival becoming filled with hatred and violence to join an extremist organization, where they will become like their oppressors—ruthlessly inhuman and unaffected by bloodshed.

In addition to the trauma they experience from witnessing these horrors themselves, family tensions contribute to their psychological issues. It’s difficult for children to feel safe when their parents, older relatives and other adults are stressed. Children need reassurance from adults and a healthy and supportive environment. Their parents are also suffering and face their own worries, so these children of Gaza cannot even retrieve comfort from their family.

The children of Gaza, who may initially be socially withdrawn and reclusive, quiet yet scarred and suffering, are at grave risk of growing into killing machines with nothing but bitter resentment for Israel. The attacks on children in Gaza are only fueling the ongoing violence, because for these children the only option is to avenge their dead family members, their homes, their schools, and their lack of human resources. Essentially, these kids have never known a proper society and will undoubtedly return to a very barbaric nature because that is their only means of survival.

These children are unable to have normal lives and development—besides the psychological trauma and lack of resources—because their identity is not fostered in a normal, healthy way. One of the most notable theories of development comes from Erik Erikson, who developed the 8 stages of psychosocial development. The nine-year old survivors of the Israeli offenses in Gaza, for instance, would be in Erikson’s stage of Industry vs. Inferiority. This is a crucial stage of human development, but these children will not be able to surpass this stage and continue to develop in a healthy manner. The Industry, which we can compare to the Israeli militant forces, dominate over the Palestinians. The children of Gaza who have lost everything—while never really having anything—are robbed of their dignity and the right to a stable life and identity of self.

The Palestinian suffering and Israeli-Palestinian conflict is nothing new. This problem has been raging on, but it is important to ease the suffering of these children and provide resources to help them and help the world. There is a way to stop the cycle, with humanitarian efforts and discussion about what needs to be done. These children are innocent, and yet they are subjected to so much. It is a moral responsibility of the international community to provide assistance to alleviate the strife of these children and rebuild what is left of the home of the Palestinian people.

European Central Bank Goes Sub Zero

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

U.S. Media Ignores Putin’s Peace Plan

“Let me repeat again, that in Russia’s view, the blame for the crisis in Ukraine lies with those who organized the coup d’etat in Kiev on February 22-23… But whatever the case, we must look for a way to solve the situation as it is today….And, as I said, what is needed is direct, full-fledged and equal dialogue between the Kiev authorities and the representatives of people in southeast Ukraine….I don’t know whether a Geneva-2 round of talks.. is realistic. (But) I believe that if we want to find a long-term solution to the crisis, there must be an open, honest and equal dialogue . That is our only option.”

-Russian President Vladimir Putin, press statement, OCSE meeting, Moscow, May 7, 2014

So many lie beneath the eternal granite
But of those honored by this stone
Let no one be forgotten
Let nothing be forgotten.

-Olga Berggolts, “Leningrad”

On Wednesday, Russian President Vladimir Putin made a proposal for ending the violence in Ukraine at an OCSE (Organization for the Cooperation and Security in Europe) in Moscow. Unfortunately, most Americans never heard what he had to say because the media failed to publish his statement. The reason for the omission is fairly obvious, the media doesn’t want people to know that Putin is not the ghoulish, authoritarian caricature he’s portrayed to be, but a levelheaded pragmatist who wants a swift and peaceful resolution to the crisis. Here is what he said:

“We think the most important thing now is to launch direct dialogue, genuine, full-fledged dialogue between the Kiev authorities and representatives of southeast Ukraine. This dialogue could give people from southeast Ukraine the chance to see that their lawful rights in Ukraine really will be guaranteed.”

Does that sound like a bloodthirsty “KGB thug” who’s driven by dreams of territorial expansion and empire-building or does it sound like a responsible leader who wants to facilitate a cease-fire until cooler heads prevail?

Did you know that Putin called for a “genuine…dialogue between the Kiev… and representatives of southeast Ukraine”? Don’t you think the media should publish critical information like that so people can decide for themselves how they feel about Putin? Or do you think the media is entitled to withhold whatever information they choose as long as it benefits their corporate bosses? Is that how a free press is supposed to work?

Putin made a number of concessions in his speech that are worth noting. For example, he agreed to move his troops away from the Ukrainian border which has been a bone of contention with the Obama administration since the Kiev crackdown began more than two weeks ago. Putin agreed to withdraw his army even though he may have weakened Russia’s defenses in the process. This is no small matter, in fact, it’s a question national security which is a president’s primary responsibility and one that Putin does not take lightly, especially now that neo Nazi-crackpots are roaming the countryside armed to the teeth and threatening to kill ethnic Russians wherever they find them. But Putin made the concession anyway hoping that his good-faith gesture would help put an end to the violence. Here’s what he said:

“We have withdrawn our forces and they are now not on the Ukrainian border but are carrying out their regular exercises at the test grounds. This can be easily verified using modern intelligence techniques, including from space, where everything can be seen. We helped to secure the OSCE military observers’ release and I think also made a contribution to defusing the situation.”

Does that sound like a man who’s lying?

Of course not, which is why the media doesn’t want you to hear what he has to say. Because it doesn’t jibe with the “Putin is Satan” trope.

Putin is a plain-speaking guy who shoots from the hip and says what he means. He’s not a bullshitter. People know that, which is why the media won’t publish what he says. It’s because they’re afraid that people will believe him and all their jingoistic, pro-war propaganda will be for naught. The fact is, people have a sense of what the truth sounds like. Call it intuition, call it whatever you like. But people know the difference between a guy like Putin and a dissembling fraud like Kerry. That’s just the way it is.

Putin also asked representatives of the southeastern regions of Ukraine to postpone the referendum scheduled for May 11.

Why would he do that? After all, if he really wanted to rebuild the Russian Empire, as his critics say, then he’d want the balloting to take place so he could show the world that the people in the East reject the junta government and demand greater autonomy from Kiev. But that’s not what Putin wants. What he wants is an end to the carnage, which is why he asked the people to postpone the voting so the government wouldn’t have an excuse for launching another bloody crackdown. Putin doesn’t want to see Ukraine ripped to shreds and reduced to Iraq-type anarchy by external enemies who are using it as a staging-ground for their own geopolitical ambitions. He wants to restore stability and security. He wants the hostilities to stop. Here’s what he said:

“We are asking representatives of the southeastern regions of Ukraine and federalization supporters to reschedule the referendum scheduled for May 11.”

Okay, so he moved his troops back from the border and called on pro-Russian activists to put off the vote on greater political autonomy. That’s two significant concessions, right? But, why is Putin doing this?

Does he have something up his sleeve? Is he trying to lull his enemies to sleep before he orders a full-blown blitz on Kiev?

Be serious. Putin doesn’t want to take over Ukraine, that’s just neocon hogwash. He has his own problems to deal with. He’s not going to add to them by annexing a broken, basket-case failed state that’s rapidly sliding into a major Depression. Why would he do that?

Then why is he so eager to make concessions? Is it because he’s scared? Maybe he’s afraid of a confrontation with NATO and the US so he’s caving in before war breaks out on his western flank?

Is that it? Is Putin a coward?

According to the western media he is, but that’s because the coverage has focused exclusively on his willingness to move his troops which makes it look like Washington’s hardline policies (sanctions, threats, saber-rattling) are actually working instead making things worse. Which they are. What’s been left out of the reporting is Putin’s plan to end the violence. That never gets mentioned because the media doesn’t want Putin to look like a peacemaker. That doesn’t serve their interests at all.

Putin’s not afraid. He’s not going to end up like Gadhafi or Saddam. But he is worried. He’s worried that the US is going block access to his biggest market, the European Union. Russia can’t simply reroute its gas from west (EU) to east (China) as many of the pundits seem to think. That’s nonsense. Russia needs Europe, just as Europe needs Russia. There is a strong, natural business/trade relationship between the two that Washington wants to sabotage so it can be the big cheese in Central Asia. That’s what this is all about, right? The pivot to Asia.

So, yes, Putin’s interest in peace is not entirely altruistic. It’s also about money too. Big money. But, so what? What difference does that make? So Putin is not as pure as the driven snow. Big deal. The fact is, he’s still pushing for peace, which is not only beneficial for Moscow, but Europe and Ukraine as well. The only one that doesn’t benefit from peace is Washington, which is why the media is suppressing information that promotes de-escalation. It’s because Washington wants a war. War is the vehicle for breaking up the Russian Federation into tiny statelets that pose no threat to US military bases spread throughout Asia. War is the means by which Washington can make its pivot, surround China, and control its future growth. War paves the way for establishing US outposts in Ukraine and subverting greater economic integration between Russia and Europe. War is US policy because war advances US interests. Period.

Washington cannot achieve its strategic or economic objectives without a confrontation. That’s why the present situation so worrisome, because –judging by the scalding rhetoric emerging from the White House, the US State Department, and all the major media– Obama is going to continue to provoke Moscow until he gets the reaction he wants. If 40 dead in Odessa doesn’t do the trick, then the next provocation will be 400, or 4,000, or 400,000. Whatever it takes. It doesn’t matter. As Madeleine Albright noted some time ago when she was asked if the sanctions on Iraq were worth the half million lives they cost, she answered without the slightest hesitation, “We think the price is worth it.”

Whatever it takes. That’s US foreign policy in a nutshell.

Here’s more from Putin:

“The responsibility for what is happening in Ukraine now lies with the people who carried out an anti-constitutional seizure of power,.. and with those who supported these actions and gave them financial, political, information and other kinds of support and pushed the situation to the tragic events that took place in Odessa. It’s simply blood-chilling to watch the footage of those events.”

Try to imagine Obama saying something like that. Try to imagine Obama even caring about the people who died in Odessa. It’s a bit of a stretch, isn’t it? By now, Obama has seen the same videos as Putin. He’s seen the people hurtling themselves out of windows to escape the flames. He’s seen the victims being pummeled to death on the streets by neo Nazi goons. He’s seen the charred remains of the people who were incinerated in the fire. But he’s said nothing. He hasn’t even offered his condolences to the families who lost loved ones. He’s remained stone silent since the incident took place believing that any reference to the massacre would only undermine US policy. His callousness is all part of a political calculation. People don’t matter, what matters is the policy. Obama is no different than Albright or any other high-ranking member of the US political establishment in that regard. They’re all the same. Life means nothing to any of them. All that matters is the objectives of their constituents.

So, what does Putin really want?

Here’s what he says: “Russia urgently appeals to the authorities in Kiev to cease immediately all military and punitive operations in southeast Ukraine. This is not an effective means of resolving internal political conflicts and, on the contrary, will only deepen the divisions.”

“Cease all military and punitive operations”? In other words, he wants peace.

Unfortunately, Obama’s crew strangled Putin’s peace plan before it ever left the cradle. Just yesterday, the US-backed puppet regime in Kiev promised to step up attacks on protestors in the east. According to Defense Secretary Andriy Parubiy:

“The counter-terrorist operation will continue unhindered, despite the presence of terrorist and insurgent groups in the Donetsk region.”

As for Putin’s appeal for peace, puppet-PM Arseniy Yatsenyuk swiftly dismissed it as “hot air.”

So, there you have it. The threat of peace has been skillfully avoided giving Obama’s fascist friends the green light to pursue their strategy of tearing Ukraine apart, killing untold thousands of civilians, and deploying NATO to Russian’s western perimeter.

And that’s why Putin’s speech was blacked out by the media, because it conflicted with Washington’s plan to launch another war.

The Economic Scam of the Century

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

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

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

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

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

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

According to the Wall Street Journal,  the bill will

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

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

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

The WSJ:

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

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

You can’t be serious?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

It’s the scam of the century.

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