Categories » ‘CURRENCY COLLASPE’
October 15th, 2015 by olddog
Edited by OLDDOG
By LAWRENCE SELLIN, PHD
It is no longer considered a brilliant or unwarranted diagnosis to conclude that Barack Hussein Obuma suffers from Narcissistic Personality Disorder, in which people have an inflated sense of their own importance, a deep need for admiration and a lack of empathy for others; all usually disguising a fragile self-image that is vulnerable to the slightest criticism.
It would not be unfair, in my opinion, to speculate that Obuma may also demonstrate some characteristics of malignant narcissism, where individuals might display an increased level of hostility and sadistically undermine organizations in which they are involved, as well as dehumanize the people with whom they associate; in this case, the United States and ordinary Americans, respectively.
In government, such conduct can manifest itself as a form of antisocial behavior, camouflaged aggression, in which the formal regulations and procedures of an organization are used in both delivering and masking aggression, appearing as non-confrontational, in which the perpetrator can go unnoticed and those harmed may not even be seen as victims of aggression.
“We are five days away from fundamentally transforming the United States of America.” – Barack Obuma, October 30, 2008.
“We are going to have to change our conversation; we’re going to have to change our traditions, our history; we’re going to have to move into a different place as a nation.” – Michelle Obuma, May 14, 2008.
If Obuma’s behavior is defined by narcissism, his motivation originates from a profound animosity towards American values and traditions. It is why he has, throughout his life, embraced Marxism and Islam, both of which have a mutual hatred of Judeo-Christian democracy and a shared belief that the United States, as the cornerstone of Western civilization, is the embodiment of evil in the world.
Obuma’s “transformation” is a euphemism for the degradation and humbling of a great nation he considers racist, oppressive, venal and dysfunctional unless properly controlled by the collectivist prescriptions of world government.
Perhaps any tendencies toward malignant narcissism that Obuma might have, his constant lying and his antipathy for the American experience can be traced to a traumatized childhood, a mother who disregarded his basic needs and ultimately abandoned him; an absent father, who was replaced by a hardcore, card-carrying communist and pornographer.
Obuma’s childhood mentor, Frank Marshall Davis was pro-Soviet, pro-Red China and wrote for Party-line publications such as the Chicago Star and the Honolulu Record; contributors to the former actually served as secret agents for Joseph Stalin. Davis argued that President Harry Truman was a fascist, racist, and imperialist, and the United States was handing West Germany back to the Nazis, while Stalin was pursuing “democracy” in East Germany and throughout the Communist Bloc. He portrayed America’s leaders as “aching for an excuse to launch a nuclear nightmare of mass murder and extermination” against the Soviets and the Chinese- as eager to end all civilization.
According to Paul Kengor, writing in The American Spectator, there are some truly remarkable similarities between the political actions of Obuma and the ideas contained in Frank Marshall Davis’ columns, such as: rejecting Winston Churchill; advocating wealth redistribution; favoring taxpayer funding of universal health care; supporting government stimulus; bashing Wall Street; trumpeting the public sector over the private sector; lambasting “excess profits”; warning God-and-gun clinging Americans about huckster preachers; seeking the political support for “social justice;” excoriating the “tentacles of big business,” bankers, big oil, corporate profits; lambasting tax cuts that “spare the rich;” singling out the “corporation executive” for not paying his “fair” share; and so on.
By the autumn of 1980, as a student at Occidental College, nineteen-year-old Obuma was already known as an ardent Marxist. Some years later he would become a friend and colleague of the America-hating, radical leftist and unrepentant domestic terrorist Bill Ayers.
I have previously described the policies of the Obuma Administration as the intersection of radical ideology and incompetence.
Obuma is “incompetent” as a President in the sense that his narcissism prevents him from accepting responsibility and learning from his mistakes.Â His ideologies, namely Marxism and sympathy for Islam, compound that “incompetence” by driving him to pursue policies that run counter to the national interest and the well-being of the American people.
Sorry, but I just don’t think he’s on our side.
Lawrence Sellin, Ph.D. is a retired colonel with 29 years of service in the US Army Reserve and a veteran of Afghanistan and Iraq. Colonel Sellin is the author of “Restoring the Republic: Arguments for a Second American Revolution “. He receives email at firstname.lastname@example.org .
To the above description of the usurper in D.C., I personally believe OBUMA is guilty of sedition, treason, and many other things that can only be described by publically unacceptable elucidation. Treason is his middle name!
October 13th, 2015 by olddog
This article was written by J.D. Heyes and originally published at Natural News.com.
Editor’s Note: As Dr. Paul Craig Roberts so often points out, the United States is the worst aggressor in the world, and has been since the end of World War II. Its undemocratic and unconstitutional empire has set up bases in nearly every corner of the earth, spent untold volumes of money to start wars everywhere, and rules mainly from the strength of the dollar, which in turn backs up the military force.
After Iraq, Afghanistan, Syria, Libya, Yemen, Somalia, Pakistan and others, the U.S. has done everything possible to destabilize the Middle East region, and yet it is eager to paint Putin as the aggressor and the one who must be contained. In reality, we are witnessing the tantrums of an empire upset that the dollar is being unseated as the world reserve currency, and is doing whatever it can to desperately project its force and prop up the illusion of superiority and dominance. It may not work, but everyone knows a wounded, cornered animal is at its most dangerous moment under threat.
Gen. Wesley Clark (yes, the same one who called for rounding up dissidents) long ago called out the neocon strategy in the Middle East, which sought to provoke war and ‘take over seven countries in seven years.’ This is the Wolfowitz Doctrine.
The United States government has become “the world’s most dangerous terrorist organization,” warns former Reagan official
by J.D. Heyes
A former top member of the Ronald Reagan administration has issued a dire warning about the current state of American government: it’s evil and will become even more evil in the years ahead as the world itself becomes more dangerous.
Dr. Paul Craig Roberts, who served just over a year as Reagan’s Assistant Secretary of the Treasury for Economic Policy, said on the Shadow of Truth radio program that Washington, D.C., is a major den of inequity.
“The United States [military policy] has destroyed seven countries,” he says. “The populations there are subject to ongoing continual violence either from the U.S. or these Jihadists or from the Islamic State. In Libya there’s various factions, no government – just warlords fighting and nobody’s safe anywhere so the populations are getting out. You can’t live in that type of situation.”
Early in the interview, the hosts ask Roberts about a recent column he penned in which he states that all current Republican presidential contenders are essentially in favor of war. The hosts then ask him about the potential of nuclear war with either Russia or China, “because we seem to be moving in that direction.”
“I think what it will take is the European countries to realize that they’ve been enabling American aggression in the 21st century, and aggression that is now brought them millions of refugees particularly from Syria and Iraq, and they can’t cope with these refugees,” said Roberts in reference to the fighting between ISIS, Syrian rebels, and Iraqi and Syrian government forces that has caused a wave of migration out of the war zones into Europe.
War hawks are also warning
He also said that Europe’s blind pursuit of American-led goals was putting the entire continent in potential conflict with Russia, which has established bases in Syria and has deployed men and material there in support of Syrian President Bashar Al-Assad, including tanks and combat aircraft. The Obama White House opposes Assad and wants him to step down.
“All of this is nonsensical for Europe, so it’s possible that they will come to the conclusion that being a vassal of Washington doesn’t pay,” Roberts said.
As further noted by Investment Research Dynamics, commenting on Roberts’ interview:
Lost in the rivers of humanity that have been streaming out of Africa and the Middle East and flooding into Europe is the fact the U.S. military is responsible for this crisis. Not only has the U.S. destroyed several countries around the globe, the U.S. Government now appears to provoking Russia into a military conflict in both Ukraine and Syria that risks escalating into a nuclear war. Even Henry Kissinger and Zbigniew Brzezinski – two notorious warhawks – have both recently stated that the U.S. Government is pushing Russia too hard.
In his interview, Roberts said that he believes the only way to avoid an eventual nuclear conflict is to break up the European Union and the NATO military alliance, the latter of which was formed at the opening of the Cold War as a counterbalance to the former Soviet Union-led Warsaw Pact. He says the U.S. uses NATO as “cover” to implement unilaterally dangerous, aggressive military policies around the world.
No peaceful candidates
In his cited column regarding the Republican candidates, Roberts added:
There is not a peaceful person among the Republican candidates. Even the female is heartless. Carly Fiorina positioned herself along side the macho men as a warmonger. She let the military/security complex know that she, too, was for sale. Send in the campaign donations, and she will see that the money flows back to the military/security complex in the buildup of fleets and armaments that will send the Russians a message.
He also says that the EU is essentially addicted to U.S. money and that it might be virtually impossible for the nations within the coalition to act on their own, which he adds is their own fault.
You can hear the entire interview here.
This article was written by J.D. Heyes and originally published at Natural News.com.
October 12th, 2015 by olddog
By Dave Hodges
Being a former college basketball coach, I marvel at the skill of a good strategist who can carry out a game plan. Vladimir Putin would have been a great college basketball coach, a masterful poker player, great chess player, a top used car salesman and he is an excellent leader of his country when it comes to foreign policy. Putin has made the Federal Reserve, Wall Street and our government look amateurish.
If it wasn’t for the fact that Putin has the potential to be one of the most despotic figures in all of history, I would be a fan of his cunning and his ability to carry out an agenda on multiple fronts with precision and skill.
However, there is one group that Putin does not outfox, out-strategize and out maneuver; that would be the forces controlling the Bank of International Settlement (BIS).
Putin is developing almost a cult following among some people in the alternative media. To them, he represents a man with the force of conviction to tell international banking to go to hell. To these well-intentioned, but misguided analysts, Putin has succeeded where other world leaders have lost their lives (e.g. JFK, Hussein, etc.). As romantic and appealing as a superhero may be who will ride in and save the world from the evil bankers, nothing could be further from the truth when it comes to Putin. Whether Putin realizes it or not, he is doing the complete bidding of the big boys at the BIS and everything is moving right along according to plan.
This article explores the fact that Putin, although he may be, on the surface, resisting international banking on one level, he is very much under their control on another level. This article will also explore the implications for these events upon the American people.
The Starting Point
In the alternative media, many make the mistake of speaking about the “banksters” as if they were one entity all working towards the same goal which is the establishment of a singular economic system which controls the planet through rabid debt management. Generally, this is true. However, the process of international banking is compartmentalized and when goals are not met, we see divisions emerging and this is exactly what we are witnessing at the present moment.
Before we can effectively analyze how Putin is in the process of putting himself in charge of the world’s chessboard, we need to first take a very brief look at how international banking is organized.
Level One: The Bank of International Settlement
International banking has three major levels. The executive directors of this grand economic scheme, the Bank of International Settlement, from Basel, sit at the head of the table. The BIS sets global economic policy by manipulating currency exchange rates (e.g. IMF), establish lending rates, picking national winners and losers, etc. The singular mission of the BIS is to march the world’s central banks into the NWO that they control.
It can be said that the forces, both known and unknown, are the rulers of the planet.
Level Two: The Central Banks
The second level of power consists of the global central banks including the Federal Reserve which is an unelected cabal of private bankers who have wrestled the financial power of this country away from Congress and control the nation’s money. It is the same in every country. And of course, if an entity controls the money of a nation, they also control those who use their money through the establishment of a predatory debt enslavement system. You learned this principle of finance as a teenager when your parents told you, “For as long as you live under this house, you will do what I say.” The power of the purse determines who controls behavior. The world’s central banks take their marching orders from the Bank of International Settlement because the monetization of the fiat currency that each central bank controls is determined by the BIS.
It can be accurately stated that the central banks are rulers of nations and represent mid-level management in the hierarchy of the process.
Level Three: The National Banking Industry
The third level of power in this unholy system are the financial institutions of a nation. In our case, this would be institutions such as Goldman Sachs, other lesser Wall Street investment houses as well as the megabanks (e.g. Bank of America, Chase, Wells Fargo, etc.). Policies that are developed in Basel are implemented by these institutions.
The investment houses conduct the day to day management of the polices which flow downhill from the BIS.
Finally, there is everybody else and that would be the sheep of this country who know nothing of how any of this works. Don’t hold your breath on a sudden level of developing awareness, most of us are all too brainwashed by the system to achieve this level of awareness.
The Game Plan for Building a New World Order
Since the 1944 Bretton Woods Agreement which established the dollar as the world’s reserve currency and the US was made the de facto world policeman as a result, Americans have enjoyed economic dominance because in order to buy energy, the world needed to purchase dollars from our Federal Reserve. After the world departed from the gold standard for the fiat currency standard, the US is the only country that truly enjoyed a solvent currency and our standard of living has reflected this status.
Americans have been allowed to enjoy this most favored status because it became our task, on behalf of the BIS, to put together coalitions of central banks to force unwilling nations into this system. And when a nation, such as Libya and Iraq, attempted to swim upstream against the debt enslavement policies of these banks, the leaders were murdered and the people become indentured debt slaves. The cost to America is endless war, massive debt and a reputation for being the “Great Satan”.
Virtually, all nations have succumbed to this tyranny, with two notable exceptions, Russia and China. To a lesser extent, India has also become problematic for the BIS since they have joined Russia and China in using national currency and/or gold to conduct trade among each other rather than using the “required” dollar.
If the BIS is going to realize its dream of New World Order, Russia, China and the United States economies must all be crushed. For when the world lies in ruin, out of chaos will come order. Putin is the main driving force in making this a reality.
Putin Has Checkmated the Central Banks At Level Two
Putin is defeating the world’s central banks at two levels. One, he is spearheading an effort to move the world away from the dollar as the world’s reserve currency. This is what the Syrian and Iranian crisis was all about (e.g. selling oil for gold rather than the Petrodollar) and Putin exposed Obama’s false flag event (i.e. gassing the Syrian rebels) for what it really was. Further, Putin now has the power to refuse to accept the dollar as payment for his gas flowing into Europe. If the Petrodollar dies, what will happen to the US economy? If this does happen, we will find out very quickly why DHS purchased 2.2 billion rounds of ammunition to go with its 2700 armored personnel carriers.
Second, Putin is threatening to become the main supplier of energy on the planet. With the consummation a recent gas deal between the Russians and the Chinese, Putin is undermining the control of energy that the central banks have enjoyed since the early days of the creation of Saudi Arabia to oversee oil production.
Putin is spitting in the face of the Federal Reserve and the other G7 central banks by encouraging Iran to sell its oil for gold. This is turning international finance on its head. Putin also has enough of a military presence, along with nuclear weapons, to stave a direct conventional invasion of his country. Putin has positioned himself to control the energy needs of Europe as the Europeans will be forced to choose between heating their homes or remaining a military ally of the US. This will eventually lead to a disintegration of NATO, thus enhancing Putin’s military power by comparison.
Has Putin Really Killed the New World Order?
The march of the G7 toward consolidating national power under the central banks has stopped dead in its tracks. Russia, China, India and to a lesser extent, Brazil and South Africa are now charting their own independent economic course. When Libya refused to regionalize and weaken its currency and they were adamant about avoiding the debt slavery, their leaders were murdered and their country was conquered by al-Qaeda proxy forces supported by the funds of the G7 and the action was carried out by the CIA.
However, Russia and China are not Libya and Iraq. Both nations possess nuclear weapons and sizeable armies. For the moment, the dream of a New World Order appears to be dead. Or is it?
The BIS Employs the Sun Tzu Strategy of “Death’s Ground”
The G7 central banks are impotent against Putin as he has outmaneuvered them at every turn. But for the big boys at Basel, things are proceeding according to plan. If the BIS has to sacrifice some of its central banks to get what it wants, so be it. The BIS will also think nothing of fermenting the conditions for the next world war.
Over 2,000 years ago, Chinese military strategist, Sun Tzu, imparted a knowledge of military strategy which is still being taught in our service academies and in our war colleges. One of the primary principles of Sun Tzu consists of the concept of placing one’s soldiers on “death’s ground” if you want them to fight hard and achieve victory against all odds. The best military example that comes to mind is what happened to the WWII Normandy invasion force at Omaha Beach on June 6, 1944. These men were thrown onto a beach where there was no retreat and they were only going to leave the beach dead or victorious. The BIS has employed a Sun Tzu strategy of placing its second level of power, the central banks, on death’s ground. The G7 central banks will conquer Putin, or they will die. However, before rigor mortis sets in, the G7 nations will commence a world war based on economic survival. Again, out of chaos will come order.
World War III Is Inevitable
The failure of the central banks to corral and control Putin has made World War III a likely scenario. As Putin continues on the path of destroying the dollar as the world’s reserve currency, what will the Federal Reserve do? There will be a war to preserve the status quo. As China, Russia and the United States are drawn into a confrontation, the world’s economy will be obliterated along with billions of lives. In the aftermath of the coming global holocaust, the supreme financial rulers of the planet will be waiting to create order, the New World Order, out of chaos. And that war has already started with the Russian invasion of Syria.
A willing pawn of the NWO, or not, Putin is no hero. He is doing exactly what is expected. Make no mistake about it, the BIS controls the central banks, world finance and Putin. The New World Order is very much alive.
What is interesting, is that I have completed the article and I barely mentioned how Putin has overrun Syria and has accomplished this feat in less than 10 days when the US has been trying to accomplish the same for three years but has not managed to put one boot on the ground.
a stage Putin owns Obama and Obama plays ball because that is his role. America is supposed to lose. All the world is and all will play their roles at the behest of the New World Order.
World Events are like professional wrestling. We are indeed looking at the WWE and fake all-star wrestling. Putin, a bankster controlled leader masquerading as an independent leader (none left), who stands for truth, justice and the “American way”, while Obama is the poster child for what is wrong with Communism. If you don’t think this is true, then why is half of America rooting for Putin to win? This is a bankster plan to have both leaders switch roles from who plays the villain and the hero. Hell, Obama doesn’t even try to hide the criminality of his administration. They are all playing a role. Your personal assets and your civil liberties are the prize in this high stakes poker game.
I have a question for the sheep. Are you physically, spiritually financially and emotional prepared?
Americans are the bad boys and “bad boys, bad boys, whatcha gonna do when they come for you”? Everything you own will soon be gone!
September 30th, 2015 by olddog
By John W. Whitehead
September 22, 2015
“When a population becomes distracted by trivia, when cultural life is redefined as a perpetual round of entertainments, when serious public conversation becomes a form of baby talk, when, in short, a people become an audience and their public business a vaudeville act, then a nation finds itself at risk: culture-death is a clear possibility.”—Author Neil Postman
Caught up in the spectacle of the forthcoming 2016 presidential elections, Americans (never very good when it comes to long-term memory) have not only largely forgotten last year’s hullabaloo over militarized police, police shootings of unarmed citizens, asset forfeiture schemes, and government surveillance but are also generally foggy about everything that has happened since.
Then again, so much is happening on a daily basis that it’s understandable if the average American has a hard time keeping up with and remembering all of the “events,” manufactured or otherwise, which occur like clockwork and keep us distracted, deluded, amused, and insulated from reality while the government continues to amass more power and authority over the citizenry.
In fact, when we’re being bombarded with wall-to-wall news coverage and news cycles that change every few days, it’s difficult to stay focused on one thing—namely, holding the government accountable to abiding by the rule of law—and the powers-that-be understand this. As investigative journalist Mike Adams points out:
This psychological bombardment is waged primarily via the mainstream media which assaults the viewer by the hour with images of violence, war, emotions and conflict. Because the human nervous system is hard wired to focus on immediate threats accompanied by depictions of violence, mainstream media viewers have their attention and mental resources funneled into the never-ending ‘crisis of the NOW’ from which they can never have the mental breathing room to apply logic, reason or historical context.
Consider if you will the regularly scheduled trivia and/or distractions in the past year alone that have kept us tuned into the various breaking news headlines and entertainment spectacles and tuned out to the government’s steady encroachments on our freedoms:
Americans were riveted when the Republican presidential contenders went head-to-head for the second time in a three-hour debate that put Carly Fiorina in a favored position behind Donald Trump; Hillary Clinton presented the softer side of her campaign image during an appearance on The Tonight Show with Jimmy Fallon; scientists announced the discovery of what they believed to be a new pre-human species, Homo naledi, that existed 2.8 million years ago; an 8.3 magnitude earthquake hit Chile; massive wildfires burned through 73,000 acres in California; a district court judge reversed NFL player Tom Brady’s four-game suspension; tennis superstar Serena Williams lost her chance at a calendar grand slam; and President Obama and Facebook mogul Mark Zuckerberg tweeted their support for a Texas student arrested for bringing a homemade clock to school.
That was preceded by the first round of the Republican presidential debates; an immigration crisis in Europe; the relaxing of Cuba-U.S. relations; the first two women soldiers graduating from Army Ranger course; and three Americans being hailed as heroes for thwarting a train attack in France. Before that, there was the removal of the Confederate flag from the South Carolina statehouse; shootings at a military recruiting center in Tennessee and a movie theater in Louisiana; the Boy Scouts’ decision to end its ban on gay adult leaders; the first images sent by the New Horizons spacecraft of Pluto; and the victory over Japan of the U.S. in the Women’s World Cup soccer finals.
No less traumatic and distracting were the preceding months’ newsworthy events, which included a shooting at a Charleston, S.C., church; the trial and sentencing of Boston Marathon bomber suspect Dzhokhar Tsarnaev; the U.S. Supreme Court’s affirmation of same-sex marriage, Obamacare, lethal injection drugs and government censorship of Confederate flag license plates; and an Amtrak train crash in Philadelphia that left more than 200 injured and eight dead.
Also included in the mix of distressing news coverage was the death of 25-year-old Freddie Gray while in police custody and the subsequent riots in Baltimore and city-wide lockdown; the damning report by the Dept. of Justice into discriminatory and abusive practices by the Ferguson police department; the ongoing saga of Hillary Clinton’s use of a private email account while serving as secretary of state; the apparently deliberate crash by a copilot of a German jetliner in the French Alps, killing all 150 passengers and crew; the New England Patriots’ fourth Super Bowl win; ameasles outbreak in Disneyland; the escalating tensions between New York police and Mayor Bill de Blasio over his seeming support for anti-police protesters; and a terror attack at the Paris office of satire magazine Charlie Hebdo.
Rounding out the year’s worth of headline-worthy new stories were protests over grand jury refusals to charge police for the deaths of Eric Garner and Michael Brown; the disappearance of an AirAsia flight over the Java Sea; an Ebola outbreak that results in several victims being transported to the U.S. for treatment; reports of domestic violence among NFL players; a security breach at the White House in which a man managed to jump the fence, cross the lawn and enter the main residence; and the reported beheading of American journalist Steven Sotloff by ISIS.
That doesn’t even begin to touch on the spate of entertainment news that tends to win the battle for Americans’ attention: Bruce Jenner’s transgender transformation to Caitlyn Jenner; the death of Whitney Houston’s daughter Bobbi Kristina Brown; Kim Kardashian’s “break the internet” nude derriere photo; sexual assault allegations against Bill Cosby; the suicide of Robin Williams; the cancellation of the comedy The Interview in movie theaters after alleged terror hack threats; the wedding of George Clooney to Amal Alamuddin; the wedding of Angelina Jolie and Brad Pitt; the ALS ice bucket challenge; and the birth of a baby girl to Prince William and Kate.
As I point out in my book Battlefield America: The War on the American People, these sleight-of-hand distractions, diversions and news spectacles are how the corporate elite controls a population by entrapping them in the “crisis of the NOW,” either inadvertently or intentionally, advancing their agenda without much opposition from the citizenry.
Professor Jacques Ellul studied this phenomenon of overwhelming news, short memories and the use of propaganda to advance hidden agendas. “One thought drives away another; old facts are chased by new ones,” wrote Ellul.
“Under these conditions there can be no thought. And, in fact, modern man does not think about current problems; he feels them. He reacts, but he does not understand them any more than he takes responsibility for them. He is even less capable of spotting any inconsistency between successive facts; man’s capacity to forget is unlimited. This is one of the most important and useful points for the propagandists, who can always be sure that a particular propaganda theme, statement, or event will be forgotten within a few weeks.”
But what exactly has the government (aided and abetted by the mainstream media) been doing while we’ve been so cooperatively fixated on whatever current sensation happens to be monopolizing the so-called “news” shows?
If properly disclosed, consistently reported on and properly digested by the citizenry, the sheer volume of the government’s activities, which undermine the Constitution and in many instances are outright illegal, would inevitably give rise to a sea change in how business is conducted in our seats of power.
Surely Americans would be concerned about the Obama administration’s plans to use behavioral science tactics to “nudge” citizens to comply with the government’s public policy and program initiatives? There would be no end to the uproar if Americans understood the ramifications of the government’s plan to train non-medical personnel—teachers, counselors and other lay people—in “mental first aid” in order to train them to screen, identify and report individuals suspected of suffering from mental illness. The problem, of course, arises when these very same mental health screeners misdiagnose opinions or behavior involving lawful First Amendment activities as a mental illness, resulting in involuntary detentions in psychiatric wards for the unfortunate victims.
Parents would be livid if they had any inkling about the school-to-prison pipeline, namely, how the public schools are being transformed from institutions of learning to prison-like factories, complete with armed police and surveillance cameras, aimed at churning out compliant test-takers rather than independent-minded citizens. And once those same young people reach college, they will be indoctrinated into believing that they have a “right” to be free from acts and expressions of intolerance with which they might disagree.
Concerned citizens should be up in arms over the government’s end-run tactics to avoid abiding by the rule of law, whether by outsourcing illegal surveillance activities to defense contractors, outsourcing inhumane torture to foreign countries, causing American citizens to disappear into secret interrogation facilities, or establishing policies that would allow the military to indefinitely detain any citizen—including journalists—considered a belligerent or enemy.
And one would hope American citizens would be incensed about being treated like prisoners in an electronic concentration camp, their every movement monitored, tracked and recorded by a growing government surveillance network that runs the gamut from traffic cameras and police body cameras to facial recognition software. Or outraged that we will be forced to fund a $93 billion drone industry that will be used to spy on our movements and activities, not to mention the fact that private prisons are getting rich (on our taxpayer dollars) by locking up infants, toddlers, children and pregnant women?
Unfortunately, while 71% of American voters are “dissatisfied” with the way things are going in the United States, that discontent has yet to bring about any significant changes in the government, nor has it caused the citizenry to get any more involved in their government beyond the ritualistic election day vote.
Professor Morris Berman suggests that the problems plaguing us as a nation—particularly as they relate to the government—have less to do with our inattention to corruption than our sanctioning, tacit or not, of such activities. “It seems to me,” writes Berman, “that the people do get the government they deserve, and even beyond that, the government who they are, so to speak.”
In other words, if we end up with a militarized police state, it will largely be because we welcomed it with open arms. In fact, according to a recent poll, almost a third of Americans would support a military coup “to take control from a civilian government which is beginning to violate the constitution.”
So where does that leave us?
As legendary television journalist Edward R. Murrow warned, “Unless we get up off our fat surpluses and recognize that television in the main is being used to distract, delude, amuse, and insulate us, then television and those who finance it, those who look at it, and those who work at it, may see a totally different picture too late.”
September 29th, 2015 by olddog
By Paul Craig Roberts
Today is the 70th anniversary of the UN. It is not clear how much good the UN has done. Some UN Blue Hemet peacekeeping operations had limited success. But mainly Washington has used the UN for war, such as the Korean War and Washington’s Cold War against the Soviet Union. In our time Washington had UN tanks sent in against Bosnian Serbs during the period that Washington was dismantling Yugoslavia and Serbia and accusing Serbian leaders, who tried to defend the integrity of their country against Washington’s aggression, of “war crimes.”
The UN supported Washington’s sanctions against Iraq that resulted in the deaths of 500,000 Iraqi children. When asked about it, Clinton’s Secretary of State said, with typical American heartlessness, that the deaths of the children were worth it. In 2006 the UN voted sanctions against Iran for exercising its right as a signatory of the non-proliferation treaty to develop atomic energy. Washington claimed without any evidence that Iran was building a nuclear weapon in violation of the non-proliferation treaty, and this lie was accepted by the UN. Washington’s false claim was repudiated by all 16 US intelligence agencies and by the International Atomic Energy Agency inspectors on the ground in Iran, but in the face of the factual evidence the US government and its presstitute media pressed the claim to the point that Russia had to intervene and take the matter out of Washington’s warmonger hands. Russia’s intervention to prevent US military attacks on Iran and Syria resulted in the demonization of Russia and its president, Vladimir Putin. “Facts?!, Washington don’t need no stinkin’ facts! We got power!” Today at the UN Obama asserted America’s over-riding power many times: the strongest military in the world, the strongest economy in the world.
The UN has done nothing to stop Washington’s invasions and bombings, illegal under international law, of seven countries or Obama’s overthrow by coup of democratic governments in Honduras and Ukraine, with more in the works.
The UN does provide a forum for countries and populations within countries that are suffering oppression to post complaints—except, of course, for the Palestinians, who, despite the boundaries shown on maps and centuries of habitation by Palestinians, are not even recognized by the UN as a state.
On this 70th anniversary of the UN, I have spent much of the day listening to the various speeches. The most truthful ones were delivered by the presidents of Russia and Iran. The presidents of Russia and Iran refused to accept the Washington-serving reality or Matrix that Obama sought to impose on the world with his speech. Both presidents forcefully challenged the false reality that the propagandistic Western media and its government masters seek to create in order to continue to exercise their hegemony over everyone else.
What about China? China’s president left the fireworks to Putin, but set the stage for Putin by rejecting US claims of hegemony: “The future of the world must be shaped by all countries.” China’s president spoke in veiled terms against Western neoliberal economics and declared that “China’s vote in the UN will always belong to the developing countries.”
In the masterly way of Chinese diplomacy, the President of China spoke in a non-threatening, non-provocative way. His criticisms of the West were indirect. He gave a short speech and was much applauded.
Obama followed second to the President of Brazil, who used her opportunity for PR for Brazil, at least for the most part. Obama gave us the traditional Washington spiel:
The US has worked to prevent a third world war, to promote democracy by overthrowing governments with violence, to respect the dignity and equal worth of all peoples except for the Russians in Ukraine and Muslims in Somalia, Libya, Iraq, Afghanistan, Syria, Yemen, and Pakistan.
Obama declared Washington’s purpose to “prevent bigger countries from imposing their will on smaller ones.” Imposing its will is what Washington has been doing throughout its history and especially under Obama’s regime.
All those refugees overrunning Europe? Washington has nothing to do with it. The refugees are the fault of Assad who drops bombs on people. When Assad drops bombs it oppresses people, but when Washington drops bombs it liberates them. Obama justified Washington’s violence as liberation from “dictators,” such as Assad in Syria, who garnered 80% of the vote in the last election, a vote of confidence that Obama never received and never will.
Obama said that it wasn’t Washington that violated Ukraine’s sovereignty with a coup that overthrew a democratically elected government. It was Russia, whose president invaded Ukraine and annexed Crimera and is trying to annex the other breakaway republics, Russian populations who object to the Russophobia of Washington’s puppet government in Ukraine.
Obama said with a straight face that sending 60 percent of the US fleet to bottle up China in the South China Sea was not an act of American aggression but the protection of the free flow of commerce. Obama implied that China was a threat to the free flow of commerce, but, of course, Washington’s real concern is that China is expanding its influence by expanding the free flow of commerce.
Obama denied that the US and Israel employ violence. This is what Russia and Syria do, asserted Obama with no evidence. Obama said that he had Libya attacked in order to “prevent a massacre,” but, of course, the NATO attack on Libya perpetrated a massacre, an ongoing one. But it was all Gaddafi’s fault. He was going to massacre his own people, so Washington did it for him.
Obama justified all of Washington’s violence against millions of peoples on the grounds that Washington is well-meaning and saving the world from dictators. Obama attempted to cover up Washington’s massive war crimes, crimes that have killed and displaced millions of peoples in seven countries, with feel good rhetoric about standing up to dictators.
Did the UN General Assembly buy it? Probably the only one present sufficiently stupid to buy it was the UK’s Cameron. The rest of Washington’s vassals went through the motion of supporting Obama’s propaganda, but there was no conviction in their voices.
Vladimir Putin would have none of it. He said that the UN works, if it works, by compromise and not by the imposition of one country’s will, but after the end of the Cold War “a single center of domination arose in the world”—the “exceptional” country. This country, Putin said, seeks its own course which is not one of compromise or attention to the interests of others.
In response to Obama’s speech that Russia and its ally Syria wear the black hats, Putin said in reference to Obama’s speech that “one should not manipulate words.”
Putin said that Washington repeats its mistakes by relying on violence which results in poverty and social destruction. He asked Obama: “Do you realize what you have done?”
Yes, Washington realizes it, but Washington will not admit it.
Putin said that “ambitious America accuses Russia of ambitions” while Washington’s ambitions run wild, and that the West cloaks its aggression as fighting terrorism while Washington finances and encourages terrorism.
The President of Iran said that terrorism was created by the US invasion of Afghanistan and Iraq and by US support for the Zionist destruction of Palestine.
Obama’s speech made clear that Washington accepts no responsibility for the destruction of the lives and prospects of millions of Muslims. The refugees from Washington’s wars who are overflowing Europe are the fault of Assad, Obama declared.
Obama’s claim to represent “international norms” was an assertion of US hegemony, and was recognized as such by the General Assembly.
What the world is faced with is two rogue anti-democratic governments—the US and Israel—that believe that their “exceptionalism” makes them above the law. International norms mean Washington’s and Israel’s norms. Countries that do not comply with international norms are countries that do not comply with Washington and Israel’s dictates.
The presidents of Russia, China, and Iran did not accept Washington’s definition of “international norms.”
The lines are drawn. Unless the American people come to their senses and expel the Washington warmongers, war is our future.
The only thing exceptional about America is the amount of international ignorance of its people. Who the hell do we think we are to destroy other nations for not following the orders of our Banking Cartel owned government? American exceptionalism is a putrid self-centered excuse to profit from needless wars where innocent children and adult citizens are murdered, infrastructure is destroyed, and economies go belly up. Here we are, totally incapable of making our government do the will of the people, and we have the balls to claim we are exceptionally benevolent people. We deserve what is coming, in spades! The only thing that would make us exceptional is if we had the guts to throw the bums out! If you continue to vote for the officers of this illegal corporation, you are basically saying, I don’t want to learn how to be a free citizen, because I’m too damned lazy, and don’t give a crap about other people! LEARN OR BURN!
September 26th, 2015 by olddog
By Michael Snyder
You would think that the simultaneous crashing of all of the largest stock markets around the world would be very big news. But so far the mainstream media in the United States is treating it like it isn’t really a big deal. Over the last sixty days, we have witnessed the most significant global stock market decline since the fall of 2008, and yet most people still seem to think that this is just a temporary “bump in the road” and that the bull market will soon resume. Hopefully they are right. When the Dow Jones Industrial Average plummeted 777 points on September 29th, 2008 everyone freaked out and rightly so. But a stock market crash doesn’t have to be limited to a single day. Since the peak of the market earlier this year, the Dow is down almost three times as much as that 777 point crash back in 2008. Over the last sixty days, we have seen the 8th largest single day stock market crash in U.S. history on a point basis and the 10th largest single day stock market crash in U.S. history on a point basis. You would think that this would be enough to wake people up, but most Americans still don’t seem very alarmed. And of course what has happened to U.S. stocks so far is quite mild compared to what has been going on in the rest of the world.
Right now, stock market wealth is being wiped out all over the planet, and none of the largest global economies have been exempt from this. The following is a summary of what we have seen in recent days…
#1 The United States – The Dow Jones Industrial Average is down more than 2000 points since the peak of the market. Last month we saw stocks decline by more than 500 points on consecutive trading days for the first time ever, and there has not been this much turmoil in U.S. markets since the fall of 2008.
#2 China – The Shanghai Composite Index has plummeted nearly 40 percent since hitting a peak earlier this year. The Chinese economy is steadily slowing down, and we just learned that China’s manufacturing index has hit a 78 month low.
#3 Japan – The Nikkei has experienced extremely violent moves recently, and it is now down more than 3000 points from the peak that was hit earlier in 2015. The Japanese economy and the Japanese financial system are both basket cases at this point, and it isn’t going to take much to push Japan into a full-blown financial collapse.
#4 Germany – Almost one-fourth of the value of German stocks has already been wiped out, and this crash threatens to get much worse. The Volkswagen emissions scandal is making headlines all over the globe, and don’t forget to watch for massive trouble at Germany’s biggest bank.
#5 The United Kingdom – British stocks are down about 16 percent from the peak of the market, and the UK economy is definitely on shaky ground.
#6 France – French stocks have declined nearly 18 percent, and it has become exceedingly apparent that France is on the exact same path that Greece has already gone down.
#7 Brazil – Brazil is the epicenter of the South American financial crisis of 2015. Stocks in Brazil have plunged more than 12,000 points since the peak, and the nation has already officially entered a new recession.
#8 Italy – Watch Italy. Italian stocks are already down 15 percent, and look for the Italian economy to make very big headlines in the months ahead.
#9 India – Stocks in India have now dropped close to 4000 points, and analysts are deeply concerned about this major exporting nation as global trade continues to contract.
#10 Russia – Even though the price of oil has crashed, Russia is actually doing better than almost everyone else on this list. Russian stocks have fallen by about 10 percent so far, and if the price of oil stays this low the Russian financial system will continue to suffer.
What we are witnessing now is the continuation of a cycle of financial downturns that has happened every seven years. The following is a summary of how this cycle has played out over the past 50 years…
- It started in 1966 with a 20 percent stock market crash.
- Seven years later, the market lost another 45 percent (1973-74).
- Seven years later was the beginning of the “hard recession” (1980).
- Seven years later was the Black Monday crash of 1987.
- Seven years later was the bond market crash of 1994.
- Seven years later was 9/11 and the 2001 tech bubble collapse.
- Seven years later was the 2008 global financial collapse.
- 2015: What’s next?
A lot of people were expecting something “big” to happen on September 14th and were disappointed when nothing happened.
But the truth is that it has never been about looking at any one particular day. Over the past sixty days we have seen absolutely extraordinary things happen all over the planet, and yet some people are not even paying attention because they did not meet their preconceived notions of how events should play out.
And this is just the beginning. We haven’t even gotten to the great derivatives crisis that is coming yet. All of these things are going to take time to fully unfold.
A lot of people that write about “economic collapse” talk about it like it will be some type of “event” that will happen on a day or a week and then we will recover.
Well, that is not what it is going to be like.
You need to be ready to endure a very, very long crisis. The suffering that is coming to this nation is beyond what most of us could even imagine.
Even now we are seeing early signs of it. For instance, the mayor of Los Angeles says that the growth of homelessness in his city has gotten so bad that it is now “an emergency”…
On Tuesday, Los Angeles officials announced the city’s homelessness problem has become an emergency, and proposed allotting $100 million to help shelter the city’s massive and growing indigent population.
LA Mayor Eric Garcetti also issued a directive on Monday evening for the city to free up $13 million to help house the estimated 26,000 people who are living on the city’s streets.
According to the Los Angeles Homeless Services Authority, the number of encampments and people living in vehicles has increased by 85% over the last two years alone.
And in recent years we have seen poverty absolutely explode all over the nation. The “bread lines” of the Great Depression have been replaced with EBT cards, and there is a possibility that a government shutdown in October could “suspend or delay food stamp payments”…
A government shutdown Oct. 1 could immediately suspend or delay food stamp payments to some of the 46 million Americans who receive the food aid.
The Agriculture Department said Tuesday that it will stop providing benefits at the beginning of October if Congress does not pass legislation to keep government agencies open.
“If Congress does not act to avert a lapse in appropriations, then USDA will not have the funding necessary for SNAP benefits in October and will be forced to stop providing benefits within the first several days of October,” said Catherine Cochran, a spokeswoman for USDA. “Once that occurs, families won’t be able to use these benefits at grocery stores to buy the food their families need.”
In the U.S. alone, there are tens of millions of people that could not survive without the help of the federal government, and more people are falling out of the middle class every single day.
Our economy is already falling apart all around us, and now another great financial crisis has begun.
When will the “nothing is happening” crowd finally wake up?
Hopefully it will be before they are sitting out on the street begging for spare change to feed their family.
September 25th, 2015 by olddog
By Michael Gaddy
“A standing military force, with an overgrown executive will not long be safe companions to liberty. The means of defense against foreign danger have been always the instruments of tyranny at home. Among the Romans it was a standing maxim to excite a war, whenever a revolt was apprehended. Throughout all Europe, the armies kept up under the pretext of defending, have enslaved the people.” ~James Madison (Emphasis added in all quotes)
“Soldiers were likely to consider themselves separate from the populace, to become more attached to their officers than their government, and to be conditioned to obey commands unthinkingly. The power of a standing army, [Samuel] Adams counseled, “should be watched with a jealous Eye” ~ Professor Christopher Hamner, George Mason University
“A standing army we shall have, also, to execute the execrable commands of tyranny; and how are you to punish them? Will you order them to be punished? Who shall obey these orders? Will the oppressor let go the oppressed? Was there even an instance? Can the annals of mankind exhibit one single example where rulers overcharged with power willingly let go the oppressed, though solicited and requested most earnestly? In this scheme of energetic government, the people will find two sets of tax-gatherers, the state and the federal sheriffs. This, it seems to me, will produce such dreadful oppression as the people cannot possibly bear. The federal sheriff may commit what oppression, make what distresses, he pleases, and ruin you with impunity; for how are you to tie his hands? Have you any sufficiently decided means of preventing him from sucking your blood by speculations, commissions, and fees?” ~Patrick Henry, Virginia Ratification Convention, June 5, 1788.
I must confess to an inability to understand so many in this country who refer to themselves as “constitutionalists” yet support and avidly defend those who fail or outright refuse to honor their sacred oaths to our Constitution and Bill of Rights. Would these same people condemn the leaders of organized crime, yet support the enforcers and hit men and refer to them as “heroes” and “public servants” deserving of praise, support and adoration?
This was once a country with a government which has morphed into a government with a country. This obliterates any idea of a government operating with consent of the governed; the people now can only operate with the consent of the government. The whole darn thing is backwards. And who enforces the edicts of this government when the “governed” question that authority? This government has their paid hitmen and enforcers just like the mafia. And for some unknown reason, the sheeple (the governed) feel the need to worship and honor these enforcers and hitmen.
The Declaration of Independence tells us the primary purpose of government is to protect and defend the Creator endowed rights of the individual. How many cops do you think would be needed if all they did was protect our rights as provided in the Bill of Rights? Would they need assault weapons, SWAT teams and MRAPs?
The 4th Amendment to our Constitution has been eviscerated in order to accommodate the “war on drugs,” a totally unconstitutional war if there ever was one. For the doubting Thomas’s among my readers, answer for me please the following question. If, in 1919, it was necessary to amend the Constitution in order to prohibit alcohol sale, distribution and consumption, why was it not necessary to amend the Constitution in order to prohibit the sale, distribution and consumption of drugs? The Constitution has not changed, but the people have, they willingly accept tyranny for “emotional reasons” and honor those who steal their individual rights and liberty as long as that tyranny is directed at another group of people—or another race of people.
The government’s various wars on poverty, drugs and terror have destroyed our God given rights enumerated in our Bill of Rights while making criminals, politicians (is there a difference) and our standing army quite wealthy, all the while robbing the people of their hard earned tax dollars.
Although the government wars have been going on for most of my life, the things our government declares war on somehow manages to increase exponentially. Today we have more poverty, more drugs and more terrorists than we had when the various wars on these objects began. Just think, if we had all the money spent on these wars, we would not have a national debt, we would have a surplus as large or larger than our national debt is today.
How does this make sense to anyone with an IQ higher than the average temperature of Colorado at 7000 ft. in October? If you hired a private contractor to rid your home and property of vermin, would you continue to pay them more and more money each year if the vermin increased exponentially after each effort of the contractor? Didn’t think so! Then why do you continue to support the same type of results from government?
It is my contention that between 90-95 percent of all laws passed by various legislatures—and all regulations which are enforced as laws—are unconstitutional. Why then should we pay for more and more police and “federal sheriffs” to enforce those laws; laws which destroy our individual rights? Why too do we not only tolerate, but continue to elect people to “law enforcement” positions who claim it is not their job to determine if a law is constitutional, but will continue to enforce them until some other elected or appointed government employee says otherwise. Did we not stand as an authority which executed over 1000 Germans and Japanese for simply “following orders” without questioning them after WWII? What is the difference between the Nazi SS officer or the Japanese soldier on the Bataan Death March and the “law enforcement” officer who blindly enforces unconstitutional laws in this country? Are they not both just following orders?
Did the 74 men, women and children at Waco in 1993, die any less horribly than those who died in the concentration camps of Europe or the Philippines? What about 14 year old Samuel Weaver or his mother Vicki, or the 7 bikers that died in Waco last May from gunshot wounds to the head with the shots traveling in a downward direction; kind of hard to produce in an alleged wild gunfight in a parking lot.
Speaking of guns and firearms produces another troubling question in my mind. What is it with the Second Amendment crowd and their rabid support for government “law enforcement” personnel? Who were those people going from door to door in New Orleans in the aftermath of Hurricane Katrina back in 05?
Although I have very little confidence in the NRA, they at least produced a good video on this event. Watch this video and then ask yourself: would any of the folks in this video have said “it can’t happen here” two weeks before it did? Of the thousands of guns confiscated, only the cheap ones were ever returned. Police officers stated during depositions “most of the quality guns” were kept by the officers who confiscated them and were never returned. Yet, not one of these officers was punished for their crimes.
We would not need the NRA or any other gun advocacy group if the people who collect a regular paycheck and wear a uniform and a badge protected our rights instead of following government orders without a thought as to their constitutionality, and then committing felony theft by keeping the guns they illegally confiscated.
The majority of our founders were terribly concerned about a “standing army” which included “federal sheriffs.” It is impossible to refute the position that such a standing army is now active in this country and includes the police; local, state and federal. If you believe for a second those who wear a badge will refuse orders to confiscate your firearms or refuse to enforce a myriad of unconstitutional laws, perhaps you too will someday be in a Youtube video explaining why you no longer believe or support the army of occupation in our country known as the police—if you survive the encounter.
In Rightful Liberty
Disregarding the fact that public school Teachers value their pay-checks more than teaching the children to understand their natural rights, why do the people of America not have the common sense to figure out all Mike’s complaints without being Constitutional scholars? Are Americans so stupid they believe we must give up our rights just because some traitorous politician did not know his ass from a hole in the ground? Why would any intelligent person think politicians must be obeyed no matter what? As for me, I have enough common sense to direct my life without their stupid laws.
I Am Mourning For America
By Michael Snyder
I am mourning for America, because she is dying. I am mourning for a nation that once knew such greatness but that has now fallen to depths that were once unimaginable. I am mourning for the death and destruction that are coming, and I am mourning for a future that our children and our grandchildren will never get to see. I am mourning for a nation that has refused to listen to the warnings and that now stands on the precipice of judgment. I am mourning for games that will never be played, for books that will never be finished, for family vacations that will never get to happen and for memories that will never be made. I am mourning for the economic depression that is coming, for the horror and suffering that friends and family will endure, and for the coming death of the country where I drew my first breath.
To many, these words will seem “over the top” and overly dramatic. After all, despite the thousands of problems facing this nation, things still seem very “normal” at this moment. Well, if you don’t “get” what I am saying right now, just bookmark this page and come back to it later. Eventually it will make sense to you.
Last week, I was invited to be a guest on a major television show that is beamed into the homes of millions of people in the United States and Canada. If you get a chance to view the shows that are being aired this week, you will notice that I wore all black.
I wasn’t just making a fashion statement. I was doing it because I am in mourning for America. Unlike so many that talk about the horrible things that are ahead for this country, I actually love the United States. I truly wish that this nation had become everything that it could have become. I love the part of the country where I currently live, I love the amazing people that I am constantly meeting, and I love the things that I have been able to experience just because I am an American.
Unfortunately, everything is about to change.
There are many out there that believe that America is still a great nation. Well, great nations do not murder tens of millions of their own children. As Dr. Chuck Missler has pointed out, the most dangerous place to be in America today is in a mother’s womb.
Since Roe v. Wade was decided in 1973, more than 56 million babies have been purposely destroyed in this country.
What does a nation that has murdered 56 million of its own children deserve?
I believe that we have just come out of a season of time when America has been shown exactly why it is about to be judged.
It is no accident that the undercover Planned Parenthood videos were released when they were. Now the entire world knows that we slaughter our babies, harvest their organs and sell them off to the highest bidder.
So what has the response of the American people been to the revelation of this great evil?
Yes, a small minority of Americans have gotten upset, but most people have been completely unmoved by this news.
Our government gives Planned Parenthood hundreds of millions of dollars each year, and that isn’t going to change. Planned Parenthood is just going to keep doing what they do, and the American people are just going to go back to ignoring the unprecedented holocaust that is happening behind closed doors all over the nation.
This past summer we also witnessed what I believe is the perfect bookend for the Roe v. Wade Supreme Court decision of 1973. The institution of marriage was permanently altered in all 50 states, and most of the nation greatly rejoiced.
The White House was lit up with rainbow colors to honor what the Supreme Court did. The rainbow is a symbol of God’s covenant with Noah, and in the book of Revelation there is a rainbow around the throne of God. They have taken this symbol that belongs to God, and they are using it as a symbol of their defiance.
Of course these things that I have just mentioned are just the tip of the iceberg. The truth is that evil is growing in this nation in thousands of different ways. Every year there are 20 million new cases of sexually transmitted disease in the United States, we have the highest divorce rate in the entire industrialized world, and nearly one out of every five American women say that they have been raped at some point in their lives. In the United States today, there are 60 million people that abuse alcohol and there are 22 million people that use illegal drugs. America produces more pornography than the rest of the world combined, and surveys have found that Christian men use it at just about the same rate as everyone else.
I will not be publishing an article tomorrow. In a few hours, Yom Kippur will begin where I live. It is the most solemn of all the holidays described in the Bible, and it is a time of repentance. I will be praying for myself, my family, my community and my nation.
If America had repented as a nation and had turned from her wicked ways, we would not have to go through the things that we are about to go through.
I believe that the time of grace that the United States has been given to repent is ending.
I know that this is very different from my usual format. Is it okay if I just share what is on my heart from time to time? On Thursday I will get back to sharing the facts, figures and hard information that you all have come to expect from me. But today when I woke up I just felt that I should share these things with you.
Very shortly, things are going to start changing in a major way.
America is dying, and the hardest times that any of us have ever seen are right in front of us.
September 24th, 2015 by olddog
By Brandon Smith
Throughout history, in most cases of economic collapse the societies in question believed they were financially invincible just before their disastrous fall. Rarely does anyone see the edge of the cliff or even the bottom of the abyss before it has swallowed a nation whole. This lack of foresight, however, is not entirely the fault of the public. It is, rather, a consequence caused by the manipulation of the fundamental information available to the public by governments and social gatekeepers.
In the years leading up to the Great Depression, numerous mainstream “experts” and politicians were quick to discount the idea of economic collapse, and most people were more than ready to believe them. Equities markets were, of course, the primary tool used to falsely elicit popular optimism. When markets rose, even in spite of other very negative fiscal indicators, the masses were satisfied. In this way, stock markets have become a kind of dopamine switch financial elites can push at any given time to juice the citizenry and distract them from the greater perils of their economic future. During every upswing of stocks, the elites argued that the “corner had been turned,” when in reality the crisis had just begun. Nothing has changed since the crash of 1929. Just look at some of these quotes and decide if the rhetoric sounds familiar today:
John Maynard Keynes in 1927: “We will not have any more crashes in our time.”
H.H. Simmons, president of the New York Stock Exchange, Jan. 12, 1928: “I cannot help but raise a dissenting voice to statements that we are living in a fool’s paradise, and that prosperity in this country must necessarily diminish and recede in the near future.”
Irving Fisher, leading U.S. economist, The New York Times, Sept. 5, 1929: “There may be a recession in stock prices, but not anything in the nature of a crash.” And on 17, 1929:“Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months.”
- McNeel, market analyst, as quoted in the New York Herald Tribune, Oct. 30, 1929: “This is the time to buy stocks. This is the time to recall the words of the late J. P. Morgan… that any man who is bearish on America will go broke. Within a few days there is likely to be a bear panic rather than a bull panic. Many of the low prices as a result of this hysterical selling are not likely to be reached again in many years.”
Harvard Economic Society, Nov. 10, 1929: “… a serious depression seems improbable; [we expect] recovery of business next spring, with further improvement in the fall.”
I hear nearly identical statements from pro-mainstream, pro-dollar skeptics all the time. And all of their assertions rest solely on the illusion of the Dow and the dollar index, not to mention statistics that are sourced from the very government that has much to gain by fooling the public into believing all is well.
In 2009, Paul Krugman, perhaps the worst and most famous economist of our age, lamented on the fact that no one in mainstream finance saw the derivatives and credit crash coming. Yet it is the same kinds of manipulative policies that Krugman champions that caused this collective ignorance in mainstream circles to begin with.
What the past proves, time and time again, is that establishment trained and educated economists are perhaps the most useless of all analysts. They are perpetually wrong. Only independent analysts have ever been able to predict anything of value as far as our economic future — not because they are psychic, but because they have the advantage of standing outside the foggy propaganda of brainwashed financial academia.
It also proves that the appearance of prosperity means nothing if the fundamentals do not support the optimism. That is to say, a bullish stock market, a high dollar index and a low unemployment percentage mean nothing if such stats are generated by false methods and fiat. The fundamentals ALWAYS matter. As we saw during the Great Depression, the markets cannot hide from reality forever.
I relate these points because the future I am about to suggest here might sound outlandish to some, because it is so contrary to the “official” accounting of our current financial world. It is important to remember that the mainstream, the majority, is almost always wrong and that the truth is very rarely accepted broadly until calamity has already fallen.
I outlined the hard facts behind the reality of economic downturn in my article “We Have Just Witnessed The Last Gasp Of The Global Economy.”
The bottom line is that the stock market, the greatest false indicator of all time, is on the verge of implosion; and the banking elites are positioning themselves to avoid blame for this implosion while the rest of us are being sold on the most elaborate recovery con-game ever conceived. But what is the purpose behind this con-game? Lies are generally only told by those who hope to gain something through deception. What do the elites hope to gain by creating a facade of recovery?
They have openly admitted to the public on numerous occasions EXACTLY what they want — namely, the institution of a truly global and centralized economic system revolving around a highly controlled world currency framework and dominated by a select cult of banking oligarchs. Anyone who claims that this is not the goal is either a liar or an uneducated fool.
I have covered the evidence supporting this program many times in the past, but it would seem with the precariously surreal nature of our world today that much needs repeating. In 1988, the financial magazine ‘The Economist’ published an article titled “Get ready for a world currency by 2018,” in which it outlined the framework for a global currency system called the “Phoenix” (a hypothetical title), administered by the International Monetary Fund by the year 2018, which would erase all national economic sovereignty and require governments to borrow from the world central banking authority, rather than print, in order to finance their infrastructure programs. This would mean total control by the IMF over member nations as they beg and plead for more capital under the global currency umbrella.
September 22nd, 2015 by olddog
By Philippe Gastonne
It’s Corporate Governance 101: Company directors are supposed to respect the wishes of the shareholders they are duty bound to serve. And if the directors defy them, those shareholders are supposed to hold the directors accountable.
That principle of board accountability will face an unusually stark test on Sept. 22, when Bank of America shareholders gather at company headquarters in Charlotte, N.C., for a special meeting — and a significant vote.
The question before the shareholders seems innocuous: It asks them to allow the directors a free hand in setting board structure. But some investors see the question as a slap in the face. Here’s why: At the bank’s 2009 annual meeting, shareholders passed a bylaw requiring that the board be overseen by an independent “chairman.” The bylaw passed by a whisker, but it was nonetheless binding.
Last fall, however, the board abruptly overturned the bylaw when it elected Brian T. Moynihan, the bank’s chief executive, its chairman as well. A vote for the motion on Sept. 22 would essentially enshrine that decision.
Therefore, the vote on Tuesday is only a little bit about the value of separating the chairman and chief executive roles at Bank of America. It is a lot more about reminding the bank’s directors not to treat shareholders with contempt. – New York Times, Sept. 18, 2015
We all know that the various forms of democratic governance don’t work nearly as well as advertised. Representatives usually turn corrupt in short order, no matter how the people select them. They devolve into oligarchy under a democratic façade.
The same is true when corporations pretend to operate under democratic principles. The charters give shareholders a patina of respect, and then management assembles an underworked, overpaid board that will rubber-stamp anything to keep its comfortable role secure.
Occasionally management miscalculates, waking up shareholders to emit sheep-like bleats of protest. One such protest is happening today at Bank of America. Dissident shareholders want the board led by an independent chairperson, instead of having CEO Brian Moynihan wear both hats.
The vote will likely fail because money managers control votes for a huge bloc of shares, even though the shares nominally belong to their underlying investors. The money managers are as “independent” of management as the bank’s toadlike board members are.
In theory, the money managers are fiduciaries who should place their clients’ interests ahead of their own. In practice, they do no such thing. Fidelity, Blackrock, Vanguard and other large mutual fund sponsors all have other business relationships with Bank of America. They will not place those revenues at risk as long as they can plausibly claim their intentions are pure.
This means the Moynihan regime will retain control, and can continue plundering and looting Bank of America for its own enrichment. As far as they are concerned, any offended shareholders should just sell their shares and leave.
Congress has a similar method. It groups us together in gerrymandered districts such that any resistance is futile, and then plunders our wallets to fill its own. If we don’t like it, we can just vote for somebody else… who will do the same again.
When will the people wake up and all agree to adhere to time tested rules of commerce and personal behavior? We would not need all of these professional scavengers to drain our pockets, if we assume responsibility for our own lives. It’s not that complicated folks. Anarchy could be the savior of societies. You are already doing it with the hundreds of personal recognition groups you form and participate in.
September 21st, 2015 by olddog
DAVIDE BONAZZI FOR THE BOSTON GLOBE
By Stephen Kinzer SEPTEMBER 20, 2015
REAL ENEMIES ARE a threat to any country, but imagined enemies can be even more dangerous. They sap resources, provoke needless conflicts, and divert attention from true challenges. The United States has constructed such a fantasy by turning Russia into an enemy.
Our current campaign against Russia was set off by what some in Washington call its “aggression” against neighboring Ukraine. Russia’s decision to aid the Assad regime in Syria has also angered us. The true reasons for anti-Russia sentiment, though, lie deeper.
Most leading figures in the American political and security establishments grew up during the Cold War. They spent much of their lives believing that the Antichrist lived in Moscow. Today they speak as if the Cold War never ended.
For a brief period in the 1990s, it appeared that Russia had lost control over its own security. Stunned into paralysis by the collapse of the Soviet Union, and without any power to resist, Russians had to watch helplessly as NATO, their longtime enemy, established bases directly on their borders. Many in Washington believed that the United States had permanently broken Russian power. In their jubilation, they imagined that we would be able to keep our foot on Russia’s neck forever.
That was highly unrealistic. By pressing our advantage too strongly in the years after the Cold War, we guaranteed a nationalist reaction. President Vladimir Putin embodies it. He is popular in Russia because his people believe he is trying to claw back some of Russia’s lost power. For the same reason, he is demonized in Washington.
Having Russia as an enemy is strangely comforting to Americans. It reassures us that the world has not really changed. That means we do not have to change our policies. Our back-to-the-future hostility toward Russia allows us to pull out our dusty Cold War playbook. We have resurrected not just that era’s anti-Moscow policies but also the hostile rhetoric that accompanied them.
This summer’s most extreme exaggeration of Russia’s power came not from an inveterate Cold Warrior like John McCain or Hillary Clinton, but from the new chairman of our Joint Chiefs of Staff, General Joseph Dunford. At his Senate confirmation hearing in July, Dunford said Russia “could pose an existential threat to the United States.” He suggested that, to defend ourselves, we should send aid to Ukrainians who want to fight Russia.
Statements like these are bizarre on several levels. First, Russia is a fundamentally weak country with a tottering economy. It is far from being able to compete with the United States, much less threaten it. Second, Russia is surrounded by American military bases, hears threats from the West every day, faces NATO guns on its borders, and therefore has reason to fear for its security. Third, by pushing Russia away, we are driving it toward China, thereby encouraging a partnership that could develop into a true threat to American power.
The most important reason it is folly to turn Russia into an enemy is more far-reaching than any of these. Europe remains stable only when all of its major countries are included in the process of governing, and each one’s security concerns are taken seriously.
The visionary Prince Metternich grasped this truth 200 years ago. Metternich was foreign minister of the Austrian Empire and mastermind of the Congress of Vienna, which was charged with reconstructing Europe after nearly a quarter-century of war. France was the villain. French armies under Napoleon had ravaged much of Europe. Anti-French sentiment was widespread and virulent. Delegates to the Congress of Vienna demanded harsh punishment for the troublemaker. Metternich resisted their pressure. He persuaded other leaders that in the interest of future stability, they must invite the miscreant back into the family. That kept Europe at peace for generations.
Emotion argues that Russia is a troublemaker because it refuses to play by our rules, and must be confronted and punished. Reason should reply that Russia is a legitimate power, cannot be expected to take orders from the West, and will not stand quietly while the United States promotes anti-Russia movements on its borders.
In our current standoff, Russia has at least one advantage: Its leaders are not foolish enough to consider the United States an existential threat. We would benefit from a bit of their realism.
Stephen Kinzer is a visiting fellow at the Watson Institute for International Studies at Brown University. Follow him on Twitter@stephenkinzer.
September 19th, 2015 by olddog
By Richard Ebeling
For over a decade, now, the American economy has been on an economic rollercoaster, of an economic boom between 2003 and 2008, followed by a severe economic downturn, and with a historically slow and weak recovery starting in 2009 up to the present.
Before the dramatic stock market decline of 2008-2009, many were the political and media pundits who were sure that the “good times” could continue indefinitely, including some members of the Board of Governors of the Federal Reserve, America’s central bank.
When the economic downturn began and then worsened, many were the critics who were sure that this proved the “failure” of capitalism in bringing such financial and real economic disruption to America and the world.
There were resurrected long questioned or rejected theories from theGreat Depression years of the 1930s that argued that only far-sighted and wise government interventions and regulations could save the country from economic catastrophe and guarantee we never suffer from a similar calamity in the future.
The Boom-Bust Cycle Has Its Origin in Government Policy
Not only is the capitalist system not responsible for the latest economic crisis, but all attempts to severely hamstring or regulate the market economy out of existence only succeed in undermining the greatest engine of economic progress and prosperity known to mankind.
The recession of 2008-2009 had its origin in years of monetary mismanagement by the Federal Reserve System and misguided economic policies emanating from Washington, D.C. For the five years between 2003 and 2008, the Federal Reserve flooded the financial markets with a huge amount of money, increasing it by 50 percent or more by some measures.
For most of those years, key market rates of interest, when adjusted for inflation, were either zero or even negative. The banking system was awash in money to lend to all types of borrowers. To attract people to take out loans, these banks not only lowered interest rates (and therefore the cost of borrowing); they also lowered their standards for credit worthiness.
To get the money, somehow, out the door, financial institutions found “creative” ways to bundle together mortgage loans into tradable packages that they could then pass on to other investors. It seemed to minimize the risk from issuing all those sub-prime home loans, which we viewed afterwards as the housing market’s version of high-risk junk bonds. The fears were soothed by the fact that housing prices kept climbing as home buyers pushed them higher and higher with all of that newly created Federal Reserve money.
At the same time, government-created home-insurance agencies like Fannie Mae and Freddie Mac were guaranteeing a growing number of these wobbly mortgages, with the assurance that the “full faith and credit” of Uncle Sam stood behind them. By the time the Federal government formally took over complete control of Fannie and Freddie in 2008, they were holding the guarantees for half of the $10 trillion American housing market.
Easy Money and Lower Interest Rates Led to the Bust
Low interest rates and reduced credit standards were also feeding a huge consumer-spending boom that that resulted in a 25 percent increase in consumer debt between 2003 and 2008, from $2 trillion to over $2.5 trillion. With interest rates so low, there was little incentive to save for tomorrow and big incentives to borrow and consume today. But, according to the U.S. Census Bureau, during that five-year period average real income only increased by at the most 2 percent. Peoples’ debt burdens, therefore, rose dramatically.
The easy money and government-guaranteed house of cards all started to come tumbling down in 2008, with a huge crash in the stock market that brought some indexes down 30 to 50 percent from their highs. The same people in Washington who produced this disaster then said that what was needed was more regulation to repair the very financial and housing markets their earlier actions had so severely undermined.
That included, at the time, a shotgun wedding between the U.S. government and the largest banks in America, when in October of 2008, the heads of those financial institutions were commanded to come to Washington, D.C. for a meeting with, then, Secretary of the Treasury Henry Paulson and former Federal Reserve Chairman Ben Bernanke.
They were told the federal government was injecting cash into the banking system with a purchase of $245 billion of shares of bank stocks in the financial sector. The banking CEOs present – some of whom made it clear they neither needed nor wanted an infusion of government money – were basically told they would not be allowed to leave the Treasury building until they had signed on the dotted line. (The money was eventually returned to the Treasury, with bank buybacks of the shares in which the government had “invested.”)
Opening the Monetary Spigot Again
The Federal Reserve, in the meantime, turned on the monetary spigot, increasing monetary base (cash and bank reserves) between 2007 and 2015 from $740 billion to around $4 trillion, brought about through a series of monetary creation policies under the general heading of “quantitative easing.”
A variety of key interest rates, as a consequence, have, when adjusted for inflation, been in the negative range most of the time for seven years. Nominal and real interest rates, therefore, cannot be considered to be telling anything truthful about the actual availability of savings in the economy and its relationship to market-based profitability of potential investments.
Interest rates manipulation has worked similarly to a price control keeping the price of a good below its market-determined and clearing level. It has undermined the motives and abilities of some people to save on the supply-side, while distorting demand-side decision-making in terms of both the types and time-horizons of possible investments to undertake, since the real scarcity and cost of borrowing for capital formation has been impossible to realistically estimate and judge in a financial market without market-based interest rates.
Markets have been distorted, investment patterns have been given wrong and excessive directions and labor and resources have been misdirected into various employments that will eventually be shown to be unsustainable.
Low Inflation and Faulty Price Indexes
Keynesians and other supporters of “stimulus” policies have argued that there has been no need to fear “excesses” in the economy because price inflation has been tame – running less than two percent a year practically the entire time since 2008.
First, it needs to be remembered that this measurement of price inflation is based upon one or another type of statistical price index. This by necessity hides from view all the individual price changes that make up the statistical average, and which has seen in the last few years significant price increases in subsectors of the market.
Second, the full impact of the massive monetary expansion has been prevented from having its full effect due to a policy gimmick that the Federal Reserve has been following since virtually the start of its quantitative easing policies. The central bank has been paying banks a rate of interest slightly above the interest rate it could earn from lending to borrowers in the private sector.
Thus, it has been more profitable for many banks to leave large amounts of their available reserves unlent as “excess reserves” that have been totaling almost $2.8 trillion of the nearly $4 trillion that Federal Reserve created. Having created all this additional lending potential, the Fed has been manipulating interest rates, again, this time to keep a large amount of it from coming on the market.
Third, particularly since 2014, the world has been increasingly awash in expanding oil supplies that has resulted in dramatically lower prices for refined oil products of all types, and most visibly to the average consumer in the form of falling prices to fill up one’s car with gasoline.
Greater supplies of useful and widely used raw materials and resources at significantly lower cost should be considered a boon to all in the economy, in making production and finished goods less expensive, and thereby raising the standards of living of all demanding such products.
Instead, the Federal Reserve worries about “price deflation” as a drag on the economy, rather than as a market-based stimulus through supply-side plentifulness that, in the long run, reduces the scarcity and cost of desired goods and services.
Central banks around the world have all gravitated to the idea that the “ideal” rate of price inflation that assures economic stability and sustainability is around two percent per year. Fixated on averages and aggregates, the central bankers continue to give little or no attention to the really important influence their monetary policies have on economic affairs: the distortion of the structures of relative prices, profit margins, resource uses and capital investments.
The “Austrian” Theory of Money and the Business Cycle
In my new book, Monetary Central Planning and the State, which will be published in October 2015 by the Future of Freedom Foundation in a eBook format available from Amazon, I explain the “Austrian” theory of money and the business cycle in contrast to bothKeynesian Economics and Monetarism.
Developed especially by Ludwig von Mises and Friedrich A. Hayek in the 20th century, the Austrian theory uniquely demonstrates the process by which central bank-initiated monetary expansion and interest rate manipulation invariably sets the stage for both an artificial boom and an eventual, inescapable bust.
Their theory is explained in the context of an analysis of the most severe economic downturn of the last one hundred years, the Great Depression. The crash of 1929 and the depression that followed were the outcome of Federal Reserve monetary policy in the 1920s, when the goal was price level stabilization – neither price inflation nor price deflation. But beneath the apparent stability of the statistical price level, monetary expansion and below-market rates of interest generated a mismatch between savings and investment in the American economy that finally broke in 1929 and 1930.
But the depth and duration of the Great Depression through the greater part of the 1930s was also not due to anything inherent in the market economy. Rather than allow markets to find their new, post-boom market-clearing levels in terms of prices, wages and resource reallocations, governments in America and Europe undertook a wide variety of massive economic interventions.
The outcome was rising and prolonged unemployment, idle factories, unused capital and vast amounts of economic waste caused by wage and price interventions, large government budget deficits and accompanying accumulated debt, uneconomic public works projects, barriers to international trade due to economic nationalism and protectionism and introduction of forms of government planning and control over people’s lives and market activities.
Faulty and Misguided Keynesian Ideas
Many of these rationales for “activist” monetary and fiscal policy emerged and took form under the cover of the emerging Keynesian Revolution as first presented by British economist John Maynard Keynes. In Monetary Central Planning and the State, I also offer a detailed critique of the fundamental premises of the Keynesian approach and why its policy prescriptions in fact lead to the very boom-bust cycle the Keynesians claim to want to prevent.
Furthermore, it is shown why it is that every essential building block of the Keynesian edifice is based on faulty economic premises, superficial conceptions of how markets actually function and why its end result is more government control with none of the benefit of economic stability that the Keynesians say is their goal.
Also, in spite of Milton Friedman‘s valuable contributions to an understanding of the superiority of competitive markets in general, his own version of activist monetary policy through a “rule” of monetary expansion and “automatic” fiscal stabilizers was more an “immanent criticism” within the Keynesian macroeconomic framework, rather than a fundamental alternative such as the “Austrian” economists have offered.
Private Free Banking, Not Central Banking
What, then, is to be done, in terms of the workings and the institutions of the monetary system? A good part of Monetary Central Planning and the State is devoted to explaining the inherent economic weaknesses and political shortcomings of all forms of central banking.
In a nutshell, central banking suffers from many of the same problems as all other forms of central planning – the presumption that monetary central planners can ever successfully manage the monetary and banking system better than a truly competitive private banking system operating on the basis of market-chosen forms of money and media of exchange.
It is shown how systems of private competitive banking could function if government central banking were brought to an end. This is done through a critical analysis of the proposals for a private monetary and banking system as found in the writings of Ludwig von Mises, Friedrich A. Hayek, Murray N. Rothbard and the “modern” proponents of monetary freedom: Lawrence H. White, George Selgin, and Kevin Dowd.
Monetary Central Planning and the State ends with a brief list of the steps that could and should be taken to begin the successful transition from central banking to a free-market monetary and banking system of the future.
If the last one hundred years has shown and demonstrated anything, it is that governments – even when in the hands of the well intentioned – have neither the knowledge, wisdom nor ability to manage the social and economic affairs of multitudes of hundreds of millions, and now billions, of people around the world. The end result has always been loss of liberty and economic misdirection and distortion.
It Is the Time for Monetary Freedom
A hundred years of central banking in the United States since the establishment of the Federal Reserve System in 1913 has equally demonstrated the inability of monetary central planners to successfully direct the financial and banking affairs of the nation through the tools of monopoly control over the quantity of money and the resulting powerful influence on money’s value and the interest rates at which savers and borrowers interact.
It is time for a radical denationalization of money, a privatization of the monetary and banking system through a separation of government from money and all forms of financial intermediation.
That is the pathway to ending the cycles of booms and busts, and creating the market-based institutional framework for sustainable economic growth and betterment.
It is time for monetary freedom to replace the out-of-date belief in government monetary central planning.
Dr. Richard Ebeling is the BB&T Distinguished Professor of Ethics and Free Enterprise Leadership at The Citadel in Charleston, South Carolina. He was professor of economics at Northwood University in Midland, Michigan (2009-2014). He served as president of the Foundation for Economic Education (2003-2008) and held the Ludwig von Mises Chair in Economics at Hillsdale College in Hillsdale, Michigan (1988-2003). His new book, Monetary Central Planning and the State, to be published in October 2015 by the Future of Freedom in eBook format will be available from Amazon.
It seems odd to me that human beings ever trusted a government to do anything right when the history of governments so furiously Denys it.
September 16th, 2015 by olddog
By Brandon Smith
For the past several months, the chorus of voices crying out over the prospect of a Federal Reserve interest rate hike have all been saying essentially the same thing – either they can’t do it, or they simply won’t do it. This is the same attitude the chorus projected during the initial prospects of a QE taper. Given the trends and evidence at hand I personally will have to take the same position on the rate hike as I did with the taper – they can do it, and they probably will do it before the year is over.
I suppose we may know more after the conclusion of the Fed meeting set for the 16th and 17th of this month. August retail sales data and industrial production numbers have come in, and they are not impressive even with the artificial goosing such stats generally receive. However, I do not expect that they will have any bearing whatsoever on the interest rate theater. The Fed’s decision has already been made, probably months in advance.
The overall market consensus seems to be one of outright bewilderment, so much so that markets have reentered the madness of “bad news is good news” as stocks explode on any negative data that might suggest the Fed will delay. The so-called experts cannot grasp why the Fed would even entertain the notion of a rate hike at this stage in the game. Hilariously, it is Paul Krugman who is saying what I have been saying for the past year when he states:
“I really find it quite mysterious that the Fed is eager to raise rates given that, they’re going to be wrong one way or the other, we just don’t know which way. But the costs of being wrong in one direction are so much higher than the costs of being the other.”
Yes, why does the Fed seem so eager? Every quarter since the bailouts began no one has been asking for interest rates to increase. No one. Only recently has the Bank for International Settlements warned of market turmoil due to the long term saturation of markets caused by low interest policies, yet it was the BIS that had been championing low rates and easy money foryears. The IMF has warned that a U.S. rate increase at this time would cause a market crisis, yet the IMF has also been admonishing low rate policies, policies that they had also been originally supporting for years.
Confused yet? The investment world certainly seems to be. In fact, the overall market attitude towards a rate hike appears to be a heightened sense of terror, and I believe this has been amply reflected in global stock behavior over the past three months in particular. With thousands of points positive and negative spanned in only a couple of trading sessions, stock market indexes around the world are beginning to behave like seizure victims, jerking and convulsing erratically.
This has, of course, all been blamed on China’s supposed economic “contagion.” But you can read why that is utter nonsense in my article “Economic crisis goes mainstream – What happens next?”
The bottom line is, the Federal Reserve has been the primary driver of the massive financial bubbles now in place in most of the world’s markets, and much of this was accomplished through ZIRP (zero interest rate policy). Hopefully many of the readers here can recall the tens of trillions of dollars of overnight lending by the Fed to international banks and corporations that was exposed during the initial TARP (Troubled Asset Relief Program – aka bailout) audit. You know, the trillions in lending that mainstream naysayers claimed was “not” contributing to the overall debt picture of the U.S. Well, reality has shown that ZIRP and overnight lending has indeed directly and indirectly created debt bubbles in numerous areas.
The most vital of areas at this time is perhaps the debts accrued by major banks and companies that have relied on overnight loans to facilitate massive stock buybacks. It has been these buybacks that have artificially supported stocks for years, and whenever ZIRP was not enough, the Fed stepped in with yet another QE program to give particular indicators a boost. The main purpose of this strategy was to ensure that markets would NOT reflect the real underlying instability of our economic system. The Fed has been pumping up banks and markets not only in the U.S., but across the globe. Why? We’ll get to that, but keep in mind that it takes time and careful strategy to wear down a population and condition them to accept far lower living standards as the “new normal” (and it takes a sudden crisis event to convince a population to be happy with such low standards given the frightening alternative).
Even with near zero interest, companies have still had to utilize a high percentage of profits in order to continue the stock buyback scam. We have finally arrived at a crossroads in which these companies will be forced to either stop buybacks altogether, or await another even more comprehensive stimulus infusion from the Fed. A rate increase of .25 percent might seem insignificant, until you realize that banks and companies have been cycling tens of trillions of dollars in ZIRP through their coffers and equities. At that level, a minor increase in borrowing costs swiftly accumulates into untenable debts. A rate increase will kill all overnight borrowing, it will kill stock buybacks, and thus, it will kill the fantasy that is today’s stock market.
This is why so many analysts simply cannot fathom why the Fed would raise rates, and why many people fully expect the introduction of QE4. But we need to ask some fundamental questions here…
Again, as Krugman ponders (or doesn’t ponder, since I believe he is an elitist insider with full knowledge of what is about to happen), why does the Fed seem so eager to raise rates if the obvious result will be a drawn out market crash? Is it possible, just maybe, that the Fed does not want to prop up markets anymore? Is it possible that the Fed’s job is to destroy the American economy and the dollar, rather than protecting either? Is it possible that the Fed is just a useful tool, an institutionally glorified suicide bomber meant to explode itself in the most populated area it can find to cause maximum damage for effect? Wouldn’t this dynamic go a long way in explaining why the Fed has taken every single action it has taken since its underhanded inception in 1913?
Will the Fed raise rates this week? I still think the Fed may “surprise” with a delay until December in order to give one more short term boost to the markets, but as I read the mainstream economic press I find the newest trend indicates I could be wrong. The trend I am speaking of has only launched in the past couple of days in the mainstream media, as outlets such as the Financial Times and CNN are now publishing arguments which claim a Fed rate hike is a “good thing”. While it may be a “good thing” in the long run as it is vital for everything that is over-inflated in our economy to fall away and leave that which is real behind, a return to true free markets without ZIRP manipulation is NOT what the mainstream media is promoting.
The mainstream pro-rate hike arguments are in most cases predicated on completely fabricated notions of economic recovery. CNN states:
“At a time when the U.S. economy is chugging along at over 2% growth and the unemployment rate reflects almost full employment, there’s not much of a case for the Fed’s key interest rate to remain at historic lows…”
As I outlined in my series written at the beginning of this year titled “One last look at the real economy before it implodes,” any growth in gross domestic product (GDP) is a farce driven primarily by government debt spending and inflation in particular necessities rather than recovery in the core economy and on main street. And, unemployment numbers are the biggest statistical con-game of all, with more than 93 million Americans not counted on the Labor Department’s rolls as unemployed because they no longer qualify for benefits.
For a couple of months, some of the mainstream has pulled its head out of its posterior and actually begun asking the questions alternative analysts have been asking for years about the potential risks of returning market volatility and “recession” (which is really an ongoing program of hyperstagflationary collapse) in the wake of a world without steady and open fiat stimulus. Yet, suddenly this week certain MSM establishment mouthpieces are claiming “mission accomplished” in the battle for fiscal recovery and cheerleading for a rate hike?
What this tells me is that the narrative is being shifted and a rate hike is indeed on the way, perhaps even this week.
It is important to note that this stampede over the edge of the cliff is not only being triggered by the Federal Reserve. Most central banks and China’s PBOC in particular is definitely part of the bigger problem, but only because China is working alongside international bankers to further their goal of total economic interdependence and centralization. China’s avid pursuit of SDR (special drawing rights) inclusion and its close relationship to the IMF and the BIS must be taken into account if one is to understand why the current fiscal crisis is developing the way it is.
China has recently announced it will be opening its onshore currency markets to foreign central banks, which essentially guarantees the inclusion of the yuan into the IMF’s SDR global currency basket by the middle of next year. The IMF’s decision to delay China’s inclusion until 2016 was clearly a calculated effort to make sure that they did not receive any blame for the market meltdown they know is coming; a meltdown that will accelerate to even more dangerous proportions as central banks begin to move away from the dollar as the world reserve and petro-currency.
In preparation for the global shift away from the dollar, China has begun dumping dollar denominated assets at historic levels while Chinese companies have begun reducing the amount of dollars they borrow for international transactions. Is this selloff designed to liquidate assets in order to support China’s ailing markets? No, not really.
China has been planning a decoupling from the U.S. dollar since at least 2005 when it introduced yuan denominated “Panda Bonds”, which at the time the media laughed at as some kind of novelty. In only ten years, China has slowly but surely spread yuan denominated instruments around the world in order to make China an alternative economic engine to the U.S. China, working with the BIS and IMF, have set the dollar up for an extreme devaluation and the U.S. Treasury has been set up for inevitable bankruptcy; and guess who will ride to our rescue when all seems lost? That’s right – the IMF and the BIS.
Will the Fed’s rate hike make U.S. bonds more desirable? Probably not. After a short term initial boost U.S. debt instruments will return to the path of de-dollarization. In the end, I believe the Fed rate hike will encourage more selling by the largest bond holders who will seek to make as much profit as possible until the bottom begins to fall out of the dollar. As China continues to sell off their treasury and dollar holdings, there will come a time when other global investors will feel forced to sell as well to avoid being the last idiot holding the bag when extreme devaluation takes place.
The Fed rate hike is a kind of openly engineered trigger event; one which will likely occur before the end of the year. The major globalist players within the BIS and IMF are separating themselves from this trigger as much as possible today, while warning of a coming crisis they helped to create.
The Fed seems to be a sacrificial appendage at this point, a martyr for the cause of globalization and centralization. Bringing down the U.S. and the dollar, or at least greatly diminishing the U.S. to third world status, has the potential to greatly benefit the Fabian socialists at the top of the pyramid. Such a crisis makes the idea of centralization and global economic administration a more enticing concept.
With a complex and disaster-prone system of interdependence causing social strife and chaos, why not just simplify everything with a global currency and perhaps even global governance? The elites will squeeze the collapse for all it’s worth if they can, and a Fed rate hike may be exactly what they need to begin the final descent.
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September 15th, 2015 by olddog
By Justin Raimondo
I heard it before I saw it: the horror in the voice of a TV anchor on the morning of September 11, 2001. As my father shook me awake – “Wake up, look at this!” – I shot straight up in my bed and beheld the scene unfolding on the television screen: a plane plowing straight into a skyscraper and coming out the other side, sheering off the top like Death wielding a scythe.
I had arrived in New York a few hours earlier on a plane from California, on the first leg of a trip to Serbia. I was slated to travel with a delegation of writers who had been invited to that recently-bombed country by the government of President Vojislav Kostunica, the liberal nationalist successor to the malevolent Slobodan Milosevic. As virtually the only visible opposition to Bill Clinton’s “humanitarian” crusade to establish the state of Kosovo – today the heroin and human trafficking capital of Europe – Antiwar.com was well known in Serbia, and I was looking forward to visiting the crime scene. But as I watched the drama of 9/11 unfold, I knew I wouldn’t be going anywhere.
As news of the attack on the Pentagon was broadcast by a clearly panicked newscaster a shock of pure fear ran up and down my spine. I recalled that the Indian Point nuclear power plant wasn’t all that far away: my father had worked there at some point in his career. I imagined that it probably wasn’t all that closely guarded – and the hair on my neck stood straight up.
Day One of the Long War was dawning.
In the days and months to come, a pall fell over the nation as the smoke emanating from the isle of Manhattan spread out and seemed to cover the whole country. People forget the atmosphere of those dark days: the war hysteria welling up in a collective spasm of fearful vituperation, seeking the closest target. Since Osama bin Laden and the hijackers weren’t available, this hate campaign was directed at anyone who dared question the narrative of a blameless and simon-pure America ambushed by demons.
To reference America’s longstanding occupation of great portions of the Middle East, and our government’s support for bloodthirsty tyrants, from Riyadh to Tel Aviv, was considered close to treason. The writer Susan Sontag was pilloried for registering the mildest dissent: led by the Bush administration’s intellectual bully-boy-in-chief, the writer Andrew Sullivan, a campaign was unleashed against anyone who opposed the neoconservative project of “draining the swamp” of the Middle East. Sullivan, you’ll recall, even went after some obscure poet whose poem he claimed had blasphemed the memory of 9/11 – a misreading he later acknowledged, but only after the damage had been done and the heretic had been defamed.
When the mysterious anthrax attacks showed up in the US mails, Sullivan fantasized that Iraq was behind it and demanded that we use nuclear weapons to attack Saddam Hussein. And around the same time the Bush administration began tying Iraq to 9/11, falsely implying that the Iraqis had been in league with Osama bin Laden and the hijackers: the march to war was on, and anyone who opposed it was fair game for the witch-hunters. “You’re either with us,”declaimed President Bush, “or you’re with the terrorists.”
It was open season on anyone who questioned the war plans of the administration and the Thought Police did not neglect us here at Antiwar.com: in the weeks and months after 9/11 we received hundreds of death threats. Sullivan and the crazed Stephen Schwartz tried to link us to Ismail Royer, arrested on charges of violating the Neutrality Act. Schwartz’s publisher, David Horowitz, ran a series of articles attacking myself and Antiwar.com as being little short of Al Qaeda supporters: one piece memorablyfantasized that a second 9/11 would see me put up against a wall and shot. Around the same time the FBI started an investigation of myself, our webmaster Eric Garris, and Antiwar.com based on the supposition that we are “agents of a foreign power.”
Fast forward to September, 2015: Dick Cheney is addressing the American Enterprise Institute, railing against the historic deal with Iran that short-circuited a war the former Vice President and his neoconservative supporters had been demanding since the days of the Bush administration. Cheney, whose office was the epicenter of a cabal that lied us into war in Iraq, broadcasting “intelligence” that turned out to be entirely fabricated, was up there predicting that an Iranian nuclear attack on the United States would be the fruit of the Iran deal. It was a deja-vu moment: the same lies, the same fearmongering, the same scam, the same audience of assembled neocons cheering him on – the difference being that the target is now Tehran instead of Baghdad.
Yet something else was different: the country was no longer in the throes of the post-9/11 syndrome. The Long War – still ongoing after all these years – had exhausted the country, and the lies that led to the invasion and conquest of Iraq had been exposed. The consequences of that disastrous war were spilling out into the headlines even as Cheney spoke: ISIS, the mutant offspring of Al Qaeda, was overrunning the Middle East, and chaos was enveloping the whole region. The architects of the neoconservative project had been discredited, and driven from office if not from public life. From the height of his power during the Bush years, when wags spoke of the “Cheney administration,” the former Vice President had been reduced to the least popular politician in the country, a Darth Vader-like figure often mocked on late nightcomedy shows.
Most importantly, the dissenters were no longer underground. The reign of terror presided over by the neocons had receded, and the opposition had emerged from the catacombs years ago, living to fight another day – with a significant degree of success. Instead of fearfully lying low, anti-interventionists of every political stripe had unfurled their banners and launched a counterattack. And one of them arose in the midst of Cheney’s speech – a young woman affiliated with the antiwar group Code Pink named Michaela Anang – and, unfurling a banner, demanded to know “Why is anyone listening to him?”
Security immediately surrounded her and escorted her out of the building as she shouted “Stop the warmongering!” – but before they dragged her out someone in the audience grabbed her banner and tried to pull it out of her hands. She resisted and a tug of war ensued. The man gripped the cloth banner and yanked at it while Michaela stood there steadfastly resisting him, seemingly without exerting much effort, until he finally gave up and collapsed in a heap, falling back in his chair.
The defeated man is no random person: his name is Patrick Clawson and he’s the research director of the Washington Institute for Near East Policy (WINEP), aspin-off of the American Israel Public Affairs Committee (AIPAC), the premier lobbying powerhouse that acts as Israel’s agent in Washington. Like many neocons, Clawson is a former Trotskyistwho decided giving up class war for the War Party was a clever career move. He was a key player in the propaganda barrage that preceded the Iraq war and afervent supporter of Ahmed Chalabi and his fellow “heroes in error.” And as a loyal shill for the government of Israeli Prime Minister Benjamin Netanyahu, Clawson has been a fanatical advocate of war with Iran. At a 2012 WINEP conference on “How to Build US-Israeli Coordination on Preventing an Iranian Nuclear Breakout,” Clawson responded to a question from the audience on what the US should do if the negotiations with Iran failed:
“Crisis initiation is really tough. It’s very hard for me to see how the United States President can get us to war with Iran.
“The traditional way America gets to war is what would be best for US interests. Some people might think that Mister Roosevelt wanted to get us into World War II. You might recall that we had to wait for Pearl Harbor. Some people might think that Mister Wilson wanted to get us into World War I. You may recall that we had to wait for the Lusitania episode. Some people might think that Mister Johnson wanted to send troops into Viet Nam. You may recall that we had to wait for the Gulf of Tonkin episode. We didn’t go to war with Spain until the Maine exploded. May I point out that Mister Lincoln did not feel he could call out the federal army until Fort Sumter was attacked, which is why he ordered the commander at Fort Sumter to do exactly that thing that the South Carolinians said would cause an attack.
“So, if, in fact, the Iranians aren’t going to compromise, it would be best if somebody else started the war… We could step up the pressure… We are in the game of using covert means against the Iranians. We could get nastier at that.”
Nasty enough to create another Gulf of Tonkin fraud– a false flag incident that would serve as justification for an attack on Iran? While Clawson hurriedly and somewhat unconvincingly said “I’m not advocating that,” he clearly was advocating exactly that – and perhaps suggesting that his Israeli sponsors might be up to the job.
Yes, “crisis initiation is really tough,” but where there’s a will there’s a way. Except it’s getting harder for Clawson and his fellow neocons to pull this off: people are on to their game. As if to underscore the neocons’ lack of political heft, Clawson couldn’t even pull that protest banner out of the hands of a woman half his size: he just collapsed, humiliated, as he fell into his seat rubbing his injured hand.
Furthermore, Michaela Anang’s message – “Why is anybody listening to this man?” – is getting out there, because the truth is that hardly anybody is listening to Cheney. The supreme irony is that even as Cheney spoke the remaining on-the-fence Senators were announcing their support for the Iran deal, giving the administration a veto-proof majority.
Not that this stopped the neocons: indeed, they accelerated their efforts, supposedly aimed at stopping the deal, with a move by the misnamed “Freedom Caucus” in the GOP congressional ranks to delay the Iran deal vote. The Republican leadership had been planning such a vote but this was nixed by the Freedom Caucusers, who came up with a complicated three-part plan, involving three separate votes. The first would be on a resolution declaring that the President and his State Department have not revealed the full text of the Iran deal, and that because they are hiding the “secret” “side agreements,” the deal is illegitimate. The second would be on a bill forbidding the lifting of sanctions. The third would be a vote on a resolution approving the deal, with the GOP majority poised to vote it down.
The first phase of this three-parter is the crucial one: as Max Fisher points out over at Vox, this would give the Republicans an ongoing issue with which to infatuate talk radio habitués and the GOP base. And, as per usual with this crowd, their contention has nothing to do with reality. The “secret side agreement” is the IAEA’s arrangements with Iran, which the US is not a party to, involving purely technical details. The IAEA has a similar “secret” agreement with the US, and indeed all parties to the Nonproliferation Treaty, and it is “secret” for the simple reason that countries with nuclear programs – especially the United States, for one – don’t want to advertise the details to the world.
Members of Congress who haven’t always gone along with the War Party’s agenda, and yet don’t want to incur their wrath, are using this pretext as a cover for their complete capitulation to the neocons’ anti-Iran jihad. Rep. Justin Amash pretends to fall for the “secret side deal” canard, but his rationalization is transparently false, as one can see by carefullyreading Amash’s argument:
“The Review Act requires the president to submit to Congress the text of any nuclear deal reached with Iran. Submission of the nuclear deal triggers a period of review for Congress to analyze the agreement – a period during which the president is prohibited from taking any actions to lift statutory sanctions.
“The precise language of the Review Act recognizes that a comprehensive nuclear deal includes many separate components, and that for members of Congress to accurately assess the merits of the agreement, Congress must have access to all portions of the agreement. Thus, the Review Act carefully defines ‘agreement’ to include ‘annexes, appendices, codicils, side agreements, implementing materials, documents, and guidance, technical or other understandings, and any related agreements.’
“We now know that there are at least two side agreements between Iran and the International Atomic Energy Agency (IAEA) that are integral to the nuclear deal but nevertheless will not be shared with Congress.”
The IAEA’s agreement with Iran is secret, including from the United States. As the international arbiter enforcing the terms of the Nonproliferation Treaty, the IAEA isn’t an American sock puppet: it is a neutral observer and its agreements with member states regarding the details of inspections and other technical matters are confidential. The administration can’t hand over documents to which it has no access.
Yes, the Review Act states that documents dealing with agreements made “between Iran and any other parties” must be made public by the administration, and yet Congress has no authority over the IAEA – unless Amash is arguing that congressional authority has to be extended to Vienna in order for the Iran deal to pass “constitutional” muster.
Hiding behind the skirts of the Constitution – or what they interpret as the intent of the Constitution – is a typical maneuver practiced by the Rand Paul wing of the ostensibly “libertarian” movement in order to explain away their total capitulation to the War Party. Amash’s non-explanation is reminiscent of Rand Paul’s supremely stupid legislation demanding that Congress issue a formal declaration of war against ISIS – as if clothing an invasion of yet another Middle Eastern country in “constitutional” clothing would somehow make it more palatable to libertarians.
Amash goes on and on, trying to put his vote in a “constitutional” framework, but ultimately winds up borrowing a line from none other than Donald Trump, declaring:
“Finally, even if we set aside the constitutional defects and related consequences discussed above, it is unconscionable that the Obama administration would negotiate a final agreement that does not secure the release of the three American hostages held in Iran – Saeed Abedini, Amir Hekmati, and Jason Rezaian – or information on the whereabouts of a former FBI agent abducted in Iran, Robert Levinson. The nuclear deal provides Iran access to billions of dollars in unfrozen assets and the almost immediate removal of major U.S. and international economic sanctions on Iran’s financial and energy sectors, followed by the termination of most nuclear-related sanctions on Iran in just a few years. If Iran is unwilling to return American hostages to their families as part of this agreement, then we cannot trust that Iran will act in good faith as sanctions are lifted.”
What this tells us is that Amash never did have an “open mind,” as he claims, regarding the Iran deal, because any serious student of the US-Iran negotiations, or diplomacy in general, knows that when it comes to bridging the gap between longtime adversaries only narrowing the framework of any agreement will lead to a successful conclusion. The release of the three people being held in Iran has nothing whatsoever to do with making sure Iran doesn’t develop nuclear weapons, and it is simply silly (in a Trumpish sort of way) to assert that failure to release them shows “we cannot trust that Iran will act in good faith as sanctions are lifted.” If Amash and his phony “Freedom Caucus” buddies are going to demand this, then why not include a demand that the Iranians free all their political prisoners, institute complete religious freedom, and give every oppressed Iranian a pony?
Amash is tired of fighting his own party: he recently survived a tough primary fight in the course of which his neocon-funded opponent accused him of being “Al Qaeda’s best friend.” And in spite of his pretensions, Amash is no Ron Paul – he doesn’t want to be the only Republican congressman to buck the neoconservative tide on this issue. If he thinks the neocons will let up on him because of his opposition to the Iran deal he had better think again, but I emphasize his pitiful capitulation in order to make a larger point.
The continuation of the neocon campaign against the Iran deal in spite of the fact that the deal will go through anyway has a purpose, one which includes cementing neoconservative control of the GOP. The Republican party is, today, an agent of a foreign power; it is the party of Benjamin Netanyahu. This was formalized when House Speaker John Boehnerinvited Bibi to undermine the Iran agreement in a speech to Congress, an invitation extended behind the President’s back. Not since the heyday of the cold war, when the Communist Party USA functioned openly as Moscow’s instrument, has an American political party bended its knee so brazenly to an overseas master. The battle over the Iran deal has effectively eliminated whatever reluctance some GOPers had to becoming Bibi’s congressional handmaidens. If the Iran deal confirms that Congress is no longer “Israeli-occupied territory,” as Pat Buchanan once put it, then its Republican component is now the political arm of the IDF.
Patrick Clawson and his crowd have lost the tug-of-war with the pro-American faction of the foreign policy establishment: that’s the significance of the Iran deal, and its importance should not be underestimated. This is a tipping point, a real sea-change – but the neocons never give up, and they never give an inch. We underestimate them at our peril.
It’s now fourteen years after 9/11, and the War Party’s momentum has been slowed, albeit not entirely halted. But this is no time for complacency. What they are counting on is their staying power within the GOP, and their many connections in the Democratic party – including their influence over Hillary Clinton, whose recent speech on the Iran deal was framed in terms of her total allegiance to Israel. She pledged a ramped-up US military presence in the immediate vicinity of Iran, perhaps giving Clawson new hope that another Gulf of Tonkin is in the works. He lost the tug-of-war with that protester, but don’t think he and his comrades will stop trying to pull the country their way.
A “Thank you!” Note: I want to thank all of our many readers who gave to the fundraising campaign this time around. Yes, we finally made it – and it’s all because of our faithful readers and supporters, who have stood by us through thick and thin. We here at Antiwar.com are working day and night to give you the best coverage of US foreign policy – and its horrific consequences – on the Internet. We report the news and we offer opinion: the first a guide to what is going on – what is really going on – and the second a guide to what we ought to do about it. We educate so you can be active in the worldwide movement for a more peaceful world. We aren’t just making the case for a noninterventionist foreign policy is abstract terms: we are educating the public in order to make peace a reality. Your tax-deductible donations make that possible. So thank you, again: I am personally dedicated to earning your support every time I sit down at my computer and start another column.
This is a syndicated repost courtesy of Antiwar.com Original. To view original, click here.
September 14th, 2015 by olddog
By Porter Stansberry
For many years now, it’s been clear that China would soon be pulling the strings in the U.S. financial system.
In 2015, the American people owe the Chinese government nearly $1.5 trillion.
I know big numbers don’t mean much to most people, but keep in mind… this tab is now hundreds of billions of dollars more than what the U.S. government collects in ALL income taxes (both corporate and individual) each year. It’s basically a sum we can never, ever hope to repay – at least, not by normal means.
Of course, the Chinese aren’t stupid. They realize we are both trapped.
We are stuck with an enormous debt we can never realistically repay… And the Chinese are trapped with an outstanding loan they can neither get rid of, nor hope to collect. So the Chinese government is now taking a secret and somewhat radical approach.
China has recently put into place a covert plan to get back as much of its money as possible – by extracting colossal sums from both the United States government and ordinary citizens, like you and me.
The Chinese “State Administration of Foreign Exchange” (SAFE) is now engaged in a full-fledged currency war with the United States. The ultimate goal – as the Chinese have publicly stated – is to create a new dominant world currency, dislodge the U.S. dollar from its current reserve role, and recover as much of the $1.5 trillion the U.S. government has borrowed as possible.
Lucky for us, we know what’s going to happen. And we even have a pretty good idea of how it will all unfold. How do we know so much? Well, this isn’t the first time the U.S. has tried to stiff its foreign creditors.
Most Americans probably don’t remember this, but our last big currency war took place in the 1960s. Back then, French President Charles de Gaulle denounced the U.S. government’s policy of printing overvalued U.S. dollars to pay for its trade deficits… which allowed U.S. companies to buy European assets with dollars that were artificially held up in value by a gold peg that was nothing more than an accounting fiction. So de Gaulle took action…
In 1965, he took $150 million of his country’s dollar reserves and redeemed the paper currency for U.S. gold from Ft. Knox. De Gaulle even offered to send the French Navy to escort the gold back to France. Today, this gold is worth about $12 billion.
Keep in mind… this occurred during a time when foreign governments could legally redeem their paper dollars for gold, but U.S. citizens could not.
And France was not the only nation to do this… Spain soon redeemed $60 million of U.S. dollar reserves for gold, and many other nations followed suit. By March 1968, gold was flowing out of the United States at an alarming rate.
By 1950, U.S. depositories held more gold than had ever been assembled in one place in world history (roughly 702 million ounces). But to manipulate our currency, the U.S. government was willing to give away more than half of the country’s gold.
It’s estimated that during the 1950s and early 1970s, we essentially gave away about two-thirds of our nation’s gold reserves… around 400 million ounces… all because the U.S. government was trying to defend the U.S. dollar at a fixed rate of $35 per ounce of gold.
In short, we gave away 400 million ounces of gold and got $14 billion in exchange. Today, that same gold would be worth $620 billion… a 4,330% difference.
Incredibly stupid, wouldn’t you agree? This blunder cost the U.S. much of its gold hoard.
When the history books are finally written, this chapter will go down as one of our nation’s most incompetent political blunders. Of course, as is typical with politicians, they managed to make a bad situation even worse…
The root cause of the weakness in the U.S. dollar was easy to understand. Americans were consuming far more than they were producing. You could see this by looking at our government’s annual deficits, which were larger than ever and growing… thanks to the gigantic new welfare programs and the Vietnam “police action.” You could also see this by looking at our trade deficit, which continued to get bigger and bigger, forecasting a dramatic drop (eventually) in the value of the U.S. dollar.
Of course, economic realities are never foremost on the minds of politicians – especially not Richard Nixon’s. On August 15, 1971, he went on live television before the most popular show in America (Bonanza) and announced a new plan…
The U.S. gold window would close effective immediately – and no nation or individual anywhere in the world would be allowed to exchange U.S. dollars for gold. The president announced a 10% surtax on ALL imports!
Such tariffs never accomplish much in terms of actually altering the balance of trade, as our trading partners simply put matching charges on our exports. So what actually happens is just less trade overall, which slows the whole global economy, making the impact of inflation worse.
Of course, Nixon pitched these moves as patriotic, saying: “I am determined that the American dollar must never again be a hostage in the hands of international speculators.”
The “sheeple” cheered, as they always do whenever something is done to “stop the speculators.” But the joke was on them. Within two years, America was in its worst recession since WWII… with an oil crisis, skyrocketing unemployment, a 30% drop in the stock market, and soaring inflation. Instead of becoming richer, millions of Americans got a lot poorer, practically overnight.
And that brings us to today…
Roughly 40 years later, the United States is in the middle of another currency war. But this time, our main adversary is not Europe. It’s China. And this time, the situation is far more serious. Our nation and our economy are already in an extremely fragile state. In the 1960s, the American economy was growing rapidly, with decades of expansion still to come. That’s not the case today.
This new currency war with China will wreak absolute havoc on the lives of millions of ordinary Americans, much sooner than most people think. It’s critical over the next few years for you to understand exactly what the Chinese are doing, why they are doing it, and the near-certain outcome.
Editor’s note: Our colleague Matt Badiali just published a presentation explaining China’s plan to increase its power and damage the U.S. If Matt’s predictions are right, millions of Americans will be completely unprepared when China makes its announcements. Stock markets and currency markets could crash overnight.
To learn what this means for you… why he’s certain this rumor is true… and how to prepare – and profit – from this situation, be sure to watch Matt’s brand-new presentation. Learn more here.
September 12th, 2015 by olddog
U.S. President Barack Obama waves as he walks from the Oval Office of the White House in Washington before their departure September 9, 2015.
BY JULIA EDWARDS
President Barack Obama has directed his administration to prepare to take in at least 10,000 Syrian refugees over the next year, the White House said on Thursday.
It is the first specific commitment the United States has made toward increasing its acceptance of refugees from the war-torn country.
Since the start of the Syrian civil war in 2011, the United States has taken in 1,500 refugees, with 300 more expected to be cleared by October.
But refugee advocates and some members of Congress said taking in an additional 10,000 refugees did not go far enough toward addressing the humanitarian crisis triggered by the war, which has prompted a massive refugee influx into Europe.
In a letter distributed to House members and seen by Reuters, Democratic Representative David Cicilline asked Obama to accommodate 65,000 Syrian refugees by the end of 2016. Religious groups have called for the United States to accept 100,000 Syrian refugees.
European countries have taken in waves of migrants fleeing violence. Germany allowed 20,000 migrants into the country over the weekend and is preparing for 800,000 this year.
Melanie Nezer, vice president of HIAS, a global refugee advocacy group, said that for the United States to allow 10,000 more refugees from Syria was not an adequate response to the crisis.
“This is totally within the realm of what the current system on autopilot could do. This is not time for autopilot. This is time to really ramp things up,” said Nezer.
The United States is conducting air strikes in Syria as part of its effort to fight against Islamic State. It currently admits a total of 70,000 refugees from around the world annually, and is due to increase that total by 5,000 for the fiscal year starting in October.
White House spokesman Josh Earnest would not say whether the 10,000 Syrians would be a part of or in addition to that total.
Earnest said national security was a top concern for admitting Syrians, a country rife with anti-American militants, noting that intensive security screening for refugees could take up to 18 months.
“I do feel confident in telling you that the president will not sign off on a process that cuts corners when it comes to the basic safety and security of the American people and the U.S. homeland,” Earnest told reporters.
The additional background checks and processing will require a “significant financial commitment” from Congress, Earnest said.
Secretary of State John Kerry met with the Senate Judiciary Committee on Wednesday, a requirement before the administration can change the number of refugees allowed. Committee Chair Chuck Grassley said he welcomed the additional 10,000 but that Kerry was not clear about whether additional refugees would be allowed later.
“Secretary Kerry initially said that the Obama administration is seeking a reasonable increase in refugees allowed into the United States in the upcoming fiscal year. But when pressed, the administration indicated that they were considering opening the floodgates and using emergency authority to go above what they proposed to Congress in today’s consultation,” the Republican lawmaker said in a statement.
Congress cannot block the administration from setting limits on the number of refugees it admits from each region. But it can block funding needed for staffing agencies such as the Department of Homeland Security and the Department of Health and Human Services that handle the screening and resettlement procedures.
(Reporting by Julia Edwards; Additional reporting by Patricia Zengerle, Richard Cowan andLisa Lambert; Editing by Bernard Orr, Peter Cooney and Ken Wills)
September 11th, 2015 by olddog
Two disturbing developments have occurred in the last couple of days that have gone relatively unnoticed compared to the recent IRS, AP, and Benghazi scandals.
First, the senate is debating an expansion of the already broad powers of the 2001 Authorization to Use Military Force (AUMF) so the U.S. can essentially engage any area in the world in the war on terror, including America. Which brings us to the second development: the Pentagon has recently granted itself police powers on American soil.
Assistant Secretary of Defense Michael Sheehan told Congress yesterday that the AUMF authorized the US military to operate on a worldwide battlefield from Boston to Pakistan. Sheehan emphasized that the Administration is authorized to put boots on the ground wherever the enemy chooses to base themselves, essentially ignoring the declaration of war clause in the US Constitution.
Senator Angus King said this interpretation of the AUMF is a “nullity” to the Constitution because it ignores Congress’ role to declare war. King called it the “most astoundingly disturbing hearing” he’s been to in the Senate.
Even ultra-hawk John McCain agreed that the AUMF has gone way beyond its authority.
“This authority … has grown way out of proportion and is no longer applicable to the conditions that prevailed, that motivated the United States Congress to pass the authorization for the use of military force that we did in 2001,” McCain said.
Glenn Greenwald wrote an excellent piece describing how this hearing reveals the not-so-secret plan to make the war on terror a permanent fixture in Western society.
It is hard to resist the conclusion that this war has no purpose other than its own eternal perpetuation. This war is not a means to any end but rather is the end in itself. Not only is it the end itself, but it is also its own fuel: it is precisely this endless war – justified in the name of stopping the threat of terrorism – that is the single greatest cause of that threat.
A self-perpetuating permanent war against a shadowy indefinable enemy appears to be the future of American foreign policy. How convenient for the war machine and tyrants who claim surveillance is safety.
But perhaps most disturbing of all of this is the military’s authority to police American streets as if it was in civil war. For all those still in denial that America is a militarized police state, this should be the ultimate cure to your delusion.
Jeff Morey of AlterNet writes:
By making a few subtle changes to a regulation in the U.S. Code titled “Defense Support of Civilian Law Enforcement Agencies” the military has quietly granted itself the ability to police the streets without obtaining prior local or state consent, upending a precedent that has been in place for more than two centuries.
The most objectionable aspect of the regulatory change is the inclusion of vague language that permits military intervention in the event of “civil disturbances.” According to the rule: “Federal military commanders have the authority, in extraordinary emergency circumstances where prior authorization by the President is impossible and duly constituted local authorities are unable to control the situation, to engage temporarily in activities that are necessary to quell large-scale, unexpected civil disturbances.”
A law from 1878 called the Posse Comitatus Act was put in place to prevent the Department of Defense from interfering with local law enforcement. But now, the DoD claims they’ve had this authority for over 100 years.
“The authorization has been around over 100 years; it’s not a new authority. It’s been there but it hasn’t been exercised. This is a carryover of domestic policy,” said an unnamed defense official who also emphasized that all soldiers take an oath to defend the Constitution against all enemies “foreign and domestic” indicating that citizens are a threat to the Constitution. How about (COULD BE A THREAT INSTEAD?)
Yet, the Constitution is a document that polices the government, not the people. In other words, the only people who can be “enemies” of the Constitution are those who took an oath to defend it. Therefore, only government officials can be an enemy the Constitution.
This follows a recent West Point study that sought to define the American people as “domestic enemies” in order to justify soldiers breaking their oath to corral pesky citizens.
The West Point Terrorism Center wrote that “conspiracy theorists” who worry that local law enforcement will be steadily replaced by federally-controlled law enforcement could potentially be a domestic enemy:
Some groups are driven by a strong conviction that the American political system and its proxies were hijacked by external forces interested in promoting a “New World Order,” (NWO) in which the United States will be embedded in the UN or another version of global government. The NWO will be advanced, they believe, via steady transition of powers from local to federal law-enforcement agencies, i.e., the transformation of local police and law-enforcement agencies into a federally controlled “National Police” agency that will in turn merge with a “Multi-National Peace Keeping Force.” The latter deployment on US soil will be justified via a domestic campaign implemented by interested parties that will emphasize American society’s deficiencies and US government incompetency.
So, as the US military claims to have the authority to be a “National Police” force, researchers who claim there is an agenda to do just that are now labeled as domestic terrorists?
Does this make any sense? Will oath takers see through these ridiculous interpretations and engage the real domestic enemy to the Constitution? Or will they just follow orders when the time comes to crack down on Americans?
How long can you continue denying that our government is OUR ENEMY?
They have it ass-backwards folks!
September 11th, 2015 by olddog
This article was written by Tom Chatham and originally published at Project Chesapeake
What does it take to make you sit up and take notice of the problems surrounding society today? What will it take to make you respond to the many crises taking place today? You have eyes so you can see and ears so you can hear but for many people any negative news is a reason to tune out the world and only think good thoughts.
The problems we face continue to pile up and doing nothing is not an option if you expect to survive the next few years in tact. Prior planning and execution of a plan is now required to stay out of the flood zone when the dam breaks and everyone starts to drown. It does not matter what kind of person you are. You have to be able to save yourself before you have the ability to help others including your own family.
You cannot protect your family if you cannot protect yourself from dangerous situations or people. You cannot protect your family if you are too weak from lack of water or food to get others to safety. You cannot protect your family from the elements if you have no cover for them due to sudden loss of your shelter.
You have car insurance just in case you have an automobile accident. You have health insurance just in case you get sick. You have life insurance to help your family just in case you die. You have homeowners insurance just in case your home is destroyed. There is unemployment insurance just in case you lose your job.
So where is your food insurance just in case you cannot find any food in the store? Where is your personal protection insurance just in case you are threatened and cannot depend on the police? Where is your water insurance just in case your water supply is shut off or becomes contaminated? Where is your communication insurance just in case the power is out and normal systems do not work? Where is your energy insurance just in case energy supplies are cut off and you need to drive to safety, cook your food or stay warm?
People think that the types of insurance for cars, health, home and life are just fine to have but the other ones listed are crazy and paranoid to think about. Even in the first case, your insurance policies depend on other people to fulfill them and those people depend on a system that is still functioning such as the banks, communications and the insurance company itself. So what happens to all those other types of insurance when the insurers themselves are no longer functioning. Any crisis that takes down the stock market, power grid or the banks will also take down all of the insurance companies.
The events of the past few weeks should have been a warning shot across the bow for many. Our financial and distribution systems are in a delicate balancing act right now and any sudden shifts could send them tumbling off the cliff rendering the services they perform extinct in a matter of hours. When that happens it will be too late to think about what you should have done when you still had the opportunity.
You cannot get your money out of the bank after the doors are shut, the ATM is empty and the POS systems are no longer working. You cannot get the food you need after the stores have been cleaned out and the distribution system has stopped functioning. You cannot get fuel for your car after the gas stations are empty and deliveries have been suspended. You cannot get police help when everyone calls 911 at the same time and most of the police have gone home to protect their own families.
If your alarm bells have not gone off already what will it take for you to realize you are in serious trouble? When that finally happens what do you plan to do to protect and care for your family? Having no plan means having a plan to suffer and persist through unpleasant situations for no good reason. Not knowing something is excusable but you have been warned many times in the past few years and to have to suffer in the future because you did not know what was coming is no longer an excuse. Failure to prepare at this time will not only cost you but it will likely put an unnecessary burden on those that will have to help you in the future.
The warnings continue to go out. The situation continues to deteriorate. The mass of humanity continues to go about its normal daily business. The Earth continues to rotate with no chance of going back from here. The early warning alarms have sounded advising people to take a defensive stance just in case. Do you hear the alarms yet or have you hit the snooze button for a few more minutes of sleep?
Folks if you continue to refuse participation in the educate America effort; you are undeserving of your citizenship. All you have to do is recommend articles to your friends and family, and have the courage to put up with their resistance to abandon their entertainment. America as we knew it is on the edge of total destruction and no one seems to give a shit. Go Figure!
September 10th, 2015 by olddog
There have been a serious of recent revelations which should concern Americans who desire to keep living their lives outside the perimeter of a FEMA Camp, or worse.
Red List Documents That Have Your Name On Them
Lisa Haven recently uncovered this report, which is over a year old and she summarizes the report in the following video.
Lisa Have is an excellent reporter who does not get enough credit for her fine work. With regard to the following, she is to be commended for this stunning revelation which makes it clear that George W. Bush’s previous admonition which stated that “You are either with us or with the terrorists” was indeed a portend of things to come.
Steve Quayle has often spoken of a “Red List” in which those considered most dangerous to the authority structure, legitimate, or not, will be dealt with in swift and severe terms. As Lisa pointed out in the video, this is why your every “google”, cell phone conversation and online reading material has become of supreme importance. A firm and irrevocable decision on whether you will live or die, under the NWO, is being determined as I write these words.
Lisa Haven does an excellent job of linking these draconian surveillance and categorization polices are, there have been other reports that point to the same variables that will come into play. Therefore, as good, and as shocking is Lisa’s work here, there are other warning signs which goes further and talks about what will happen after the implementation of martial law.
Many Documents and Practices Leading to the Same Place
Below is a very small sample size of the tyranny which has been codified and will be used against the American people:
Executive Order 13603provides for the nationalization of every resource in the country from all food, to all water, to all manufacturing, transportation, etc. In fact EO 13603 promotes the use of slave labor under the authority of the Secretary of the Labor at the behest of the President.
A high “Threat Martix Score” can lead one to be placed on the proverbial “Red List”. From my confidential sources. I have learned that there is a 16 dimensional rating of every American. Each of the 16 domains has an individual score and a combined aggregate score. Known associates is one of the domains and it is very concerning and it works like this: If Dave Hodges takes his family to the XYZ restaurant, the GPS in your phone/car notes the destination. On the same night, and unknown to Dave Hodges, Doug and Joe Hagmann visit the same restaurant, and as a result, our collective threat matrix score in the “Known Associates” domain climbs exponentially. And on the same night, Steve Quayle takes his family to the very same restaurant and subsequently, all three principals, move to the top of the list. The system notes the pre-crime potential for the three men to be planning acts of terrorism against the banker controlled government. This conclusion is reached without the involvement of a human analyst and without one shred of concrete evidence. This system of surveillance which would make the East German Stasi turn green with envy.
Further, this system also rates your internet browsing history. Even if you only visit Steve Quayle’s website out of curiosity, you will receive the same Red List rating whether you believe a word of what you read on this site. The amount of time on a site is also scored and factors into your Red List rating. You may review a previous article I have written on some of the ancillary support facilities and organizations which service this totalitarian system of surveillance.
The NDAA is threat to all Americans. Based solely on the say-so of the President, or his designees, you can simply disappear. There will be no trial, no “one phone call” and nobody will know where you are being held, or if you are even alive
If you are new to the subject of tyranny in America and have not heard of this, I would suggest starting here. When you are finished reading, ask yourself, why a government that has an established Constitution and a Republic form of representative form of government, would need such a law? If the government catches a terrorist, our court system is more than able to deal with the associated crimes. However, this law is not designed for terrorists, it is designed for you and because of your high threat matrix score.
Every American should fear and be angered by FM 3-39.40 Internment and Resettlement Operations (PDF). The document was originally to be kept secret, but everyone in the military command structure, as we know, is not on board with the encroaching tyranny sweeping across this country.
There are two terms which should concern you, namely, Internment and Resettlement (I/R). As if this needs any further elaboration, the two terms simply mean that you will be snatched from your home and sent to a detention camp for an undetermined period of time and treated in a manner which will not be defined by any law. This document describes Jade Helm 15 very accurately. It also serves to complement the work of Lisa Haven.
This document is the manifestation of the NDAA’s indefinite detention. The document describes the make up of the FEMA camps down to the fact that they will eventually be manned and managed by foreign troops, and some of you thought there were no Russians on American soil.
All of America’s firewalls have been breached. The American people, in order to escape this well-planned tyrannical future, have no options left except to acquiesce or fight. Our vote is meaningless and even if voting fraud was not rampant, we are forced to select from the list of candidates offered by the elite. Under this system, nothing will and can change.
For novice Patriot, please spend some time reading and checking facts. When you do, you will start to sound like Quayle, Hagmann and Hodges et al. At that point, there will be turning back. There is is indeed light at the end of this tyrannical tunnel. It is the headlights of the globalist training heading directly for you and your family.
September 9th, 2015 by olddog
by Bloomberg Business
Maria Levitov at Bloomberg
Emerging-market currencies weakened to an all-time low and stocks fell as investors grappled with the prospect of higher U.S. interest rates. Malaysia’s ringgit tumbled to a 17-year low and a bomb attack in Turkey sent the lira plunging to a record.
A gauge tracking 20 developing-nation currencies declined for a fifth straight day, losing 0.5 percent, as the ringgit depreciated 1.6 percent and the lira slid 0.7 percent. Investors have dumped riskier assets since China’s shock devaluation almost a month ago worsened the outlook for trade with the world’s second-largest economy, while also making a Federal Reserve interest-rate increase this month less certain.
“The momentum remains weak ahead of the Fed meeting” Sept. 16-17, said Martial Godet, the head of Europe and emerging-market equities and derivatives strategy at BNP Paribas SA in Paris, who recommends avoiding energy and commodity producers, while focusing on Taiwan, South Korea, Poland and, for those prone to taking risk, China. “With most markets already losing money in 2015, the appetite for risk is low.”
While small-cap stocks in Shanghai rose after a People’s Bank of China official said the rout that wiped out $5 trillion of the nation’s equities was nearing an end, China’s biggest companies plunged on speculation state-backed funds had stopped buying. The Borsa Istanbul 100 Index retreated for a second day as President Recep Tayyip Erdogan vowed to escalate the government’s campaign against Kurdish separatists after a roadside bomb killed Turkish soldiers. In Mexico, food company Grupo Lala SAB led gains on the benchmark IPC index, which closed little changed.
The MSCI Emerging Markets Index decreased 1.3 percent to 778.18 on Monday, pushing its price-to-earnings ratio for the next 12 months to 10.3 times, a 31 percent discount to developed-country stocks on the MSCI World Index. The 2.8 percent slump in the Karachi Stock Exchange KSE100 Index led declines in emerging markets, while shares in Saudi Arabia, Nigeria and Kuwait gained at least 0.8 percent. Trading in Brazil, Canada and the U.S. was closed for holidays.
Colombian lender Banco Davivienda SA led gains among members of the MSCI Latin America index, rising 2.5 percent. Its compatriot, state-controlled oil company Ecopetrol SA, posted the biggest loss as the price of crude fell.
The odds that the Fed will raise rates for the first time since 2006 this month rose to 32 percent Monday from 30 percent Friday after a report showed U.S. unemployment fell to the lowest level since April 2008. The likelihood was 48 percent Aug. 10, the day before the yuan devaluation.
“While concerns over the Fed rate can lead to outflows from emerging markets, the sooner they do it the better as it will remove huge uncertainties,” said Jeffrosenberg Tan, a money manager at PT Sinarmas Asset Management. “Once the uncertainties about the rate are gone, it would be a good time to buy stocks.”
All 10 of the MSCI Emerging Markets Index’s industry gauges dropped Monday, led by telecommunications and health-care companies. Among currencies, the South Korean won and Indonesian rupee weakened at least 0.7 percent. Colombia’s local bonds fell to a four-year low after higher-than-expected inflation.
As Brent crude declined for a second straight day, the ruble dropped 0.9 percent. The Russian currency has lost 19 percent of its value in the past three months, the most among 24 developing countries.
“If markets would sell off further, we would add some emerging-market risk,” said Michael Ganske, who helps manage about $4.5 billion as the head of emerging markets at Rogge Global Partners Plc in London. Ganske said he favors the Indian rupee, Mexican peso and ruble, while staying away from the Malaysian ringgit, Taiwan dollar and Thai baht.
The ChiNext gauge of smaller Chinese companies climbed 2.1 percent from a seven-month low. Officials attending the Group of 20 gathering in Turkey over the weekend predicted stabilization in the currency and stock markets in the coming weeks. People’s Bank of China Governor Zhou Xiaochuan said state intervention prevented systemic risk and stopped a free-fall.
PT Perusahaan Gas Negara sank 11 percent in Jakarta to the lowest level since September 2011 on a government plan to lower industrial-gas prices.
Source: Emerging Currencies Drop as Ambiguity on Fed Timing Hurts Stocks – Bloomberg Business
September 8th, 2015 by olddog
By Brandon Smith
It is undeniable; the final collapse triggers are upon us, triggers alternative economists have been warning about since the initial implosion of 2008. In the years since the derivatives disaster, there has been no end to the absurd and ludicrous propaganda coming out of mainstream financial outlets and as the situation in markets becomes worse, the propaganda will only increase. This might seem counter-intuitive to many. You would think that the more obvious the economic collapse becomes, the more alternative analysts will be vindicated and the more awake and aware the average person will be. Not necessarily…
In fact, the mainstream spin machine is going into high speed the more negative data is exposed and absorbed into the markets. If you know your history, then you know that this is a common tactic by the establishment elite to string the public along with false hopes so that they do not prepare or take alternative measures while the system crumbles around their ears. At the onset of the Great Depression the same strategies were used. Consider if you’ve heard similar quotes to these in the mainstream news over the past couple months:
John Maynard Keynes in 1927: “We will not have any more crashes in our time.”
H.H. Simmons, president of the New York Stock Exchange, Jan. 12, 1928: “I cannot help but raise a dissenting voice to statements that we are living in a fool’s paradise, and that prosperity in this country must necessarily diminish and recede in the near future.”
Irving Fisher, leading U.S. economist, The New York Times, Sept. 5, 1929: “There may be a recession in stock prices, but not anything in the nature of a crash.” And on 17, 1929:“Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months.”
- McNeel, market analyst, as quoted in the New York Herald Tribune, Oct. 30, 1929: “This is the time to buy stocks. This is the time to recall the words of the late J. P. Morgan… that any man who is bearish on America will go broke. Within a few days there is likely to be a bear panic rather than a bull panic. Many of the low prices as a result of this hysterical selling are not likely to be reached again in many years.”
Harvard Economic Society, Nov. 10, 1929: “… a serious depression seems improbable; [we expect] recovery of business next spring, with further improvement in the fall.”
Here is the issue – as I have ALWAYS said, economic collapse is not a singular event, it is a process. The global economy has been in the process of collapse since 2008 and it never left that path. Those who were ignorant took government statistics at face value and the manipulated bull market as legitimate and refused to acknowledge the fundamentals. Now, with markets recently suffering one of the greatest freefalls since the 2008/2009 crash, they are witnessing the folly of their assumptions, but that does not mean they will accept them or apologize for them outright. If there is one lesson I have learned well during my time in the Liberty Movement, it is to never underestimate the power of normalcy bias.
There were plenty of “up days” in the markets during the Great Depression, and this kept the false dream of a quick recovery alive for a large percentage of the American population for many years. Expect numerous “stunning stock reversals” as the collapse of our era progresses, but always remember that it is the overall TREND that matters far more than any one positive or negative trading day (unless you open down 1000 points as we did on Monday), and even more important than the trends are the economic fundamentals.
The establishment has made every effort to hide the fundamentals from the public through far reaching misrepresentations of economic stats. However, the days of effective disinformation in terms of the financial system are coming to an end. As investors and the general public begin to absorb the reality that the global economy is indeed witnessing a vast crisis scenario and acknowledges real numbers over fraudulent numbers, the only recourse of central bankers and the governments they control is to convince the public that the crisis they are witnessing is not really a crisis. That is to say, the establishment will attempt to marginalize the collapse signals they can no longer hide as if such signals are of “minimal” importance.
Just as occurred during the onset of the Great Depression, the lies will be legion the closer we come to zero hour. Here are some of the lies you will likely hear as the collapse accelerates…
The Crisis Was Caused By Chinese Contagion
The hypocrisy inherent in this lie is truly astounding, to say the least, considering it is now being uttered by the same mainstream dirtbags who only months ago were claiming that China’s financial turmoil and stock market upset were inconsequential and would have “little to no effect” on Western markets.
I specifically recall these hilarious quotes from Barbara Rockefeller in July:
“Something else that doesn’t matter much is the Chinese equity meltdown—again. China may be big and powerful, but it lacks a retail base and fund managers experienced in price variations, never mind a true rout…”
“Doom-and-gloom types have been saying for a long time that we will get a stock market rout when the Fed finally does move to raise rates. But as we wrote last week, history doesn’t bear out the thesis, not that you can really count on history when the sample size is one or two data points…”
Yes, that is a bit embarrassing. One or two data points? There have been many central bank interventions in history. When has ANY central bank or any government ever used stimulus to manipulate markets through fiat infusion and zero interest fueled stock buybacks or given government the ability to monetize its own debt, and actually been successful in the endeavor? When has addicting markets to stimulus like a heroin dealer ever led to “recovery”? When has this kind of behavior ever NOT created massive fiscal bubbles, a steady degradation of the host society, or outright calamity?
Suddenly, according to the MSM, China’s economy does affect us. Not only that, but China is to blame for all the ills of the globally interdependent economic structure. And, the mere mention that the Fed might delay the end of near zero interest rates in September by a Federal Reserve stooge recently sent markets up 600 points after a week-long bloodbath; meaning, the potential for any interest rate increase no mater how small also has wider implications for markets.
The truth is, the crash in global stocks which will undoubtedly continue over the next several months despite any delays on ZIRP by the Fed is a product of universal decay in fiscal infrastructure. Nearly every single nation on this planet, every sovereign economy, has allowed central and international banks to poison every aspect of their respective systems with debt and manipulation. This is not a “contagion” problem, it is a systemic problem to every economy across the world.
China’s crash matters not because it is causing all other economies to crash. It matters because China is the largest importer/exporter in the world and it is a litmus test for the financial health of every other country. If China is failing, it means we are not consuming, and if we are not consuming, then we must be broke. China’s crash portends our own far worse economic conditions. THAT is why western markets have been crumbling along with China’s despite the assumptions of the mainstream.
China‘s Rate Cuts Will Stop The Crash
No they won’t. China has cut rates five times since last November and this has done nothing to stem the tide of their market collapse. I’m not sure why anyone would think that a new rate cut would accomplish anything besides perhaps a brief respite from the continuing avalanche.
It’s Not A Crash, It’s Just The End Of A “Market Cycle”
This is the most ignorant non-explanation I think I have ever heard. There is no such thing as a “market cycle” when your markets are supported partially or fully by fiat manipulation. Our market is in no way a free market, thus, it cannot behave like a free market, and thus, it is a stunted market with no identifiable cycles.
Swings in markets of up to 5%-6% to the downside or upside (sometimes both in a single day) are not part of a normal cycle. They are a sign of cancerous volatility that comes from an economy on the brink of disaster.
The last few years have been seemingly endless market bliss in which any idiot day trader could not go wrong as long as he “bought the dip” while Fed monetary intervention stayed the course. This is also not normal, even in the so-called “new normal”. Yes, the current equities turmoil is an inevitable result of manipulated markets, false statistics, and misplaced hopes, but it is indeed a tangible crash in the making. It is in no way an example of a predictable and non-threatening “market cycle”, and the fact that mainstream talking heads and the people who parrot them had absolutely no clue it was coming is only further evidence of this.
The Fed Will Never Raise Rates
Don’t count on it. Public statements by globalist entities like the IMF on China, for example, have argued that their current crisis is merely part of the “new normal”; a future in which stagnant growth and reduced living standards is the way things are supposed to be. I expect the Fed will use the same exact argument to support the end of zero interest rates in the U.S., claiming that the decline of American wealth and living standards is a natural part of the new economic world order we are entering.
That’s right, mark my words, one day soon the Fed, the IMF, the BIS and others will attempt to convince the American people that the erosion of the economy and the loss of world reserve status is actually a “good thing”. They will claim that a strong dollar is the cause of all our economic pain and that a loss in value is necessary. In the meantime they will, of course, downplay the tragedies that will result as the shift toward dollar devaluation smashes down on the heads of the populace.
A rate hike may not occur in September. In fact, as I predicted in my last article, the Fed is already hinting at a delay in order to boost markets, or at least slow down the current carnage to a more manageable level. But, they WILL raise rates in the near term, likely before the end of this year after a few high tension meetings in which the financial world will sit anxiously waiting for the word on high. Why would they raise rates? Some people just don’t seem to grasp the fact that the job of the Federal Reserve is to destroy the American economic system, not protect it. Once you understand this dynamic then everything the central bank does makes perfect sense.
A rate increase will occur exactly because that is what is needed to further destabilize U.S. market psychology to make way for the “great economic reset” that the IMF and Christine Lagarde are so fond of promoting. Beyond this, many people seem to be forgetting that ZIRP is still operating, yet, volatility is trending negative anyway. Remember when everyone was ready to put on their ‘Dow 20,000’ hat, certain in the omnipotence of central bank stimulus and QE infinity? Yeah…clearly that was a pipe dream.
ZIRP has run it’s course. It is no longer feeding the markets as it once did and the fundamentals are too obvious to deny.
The globalists at the Bank for International Settlements in spring openly deemed the existence of low interest rate policies a potential trigger for crisis. Their statements correlate with the BIS tendency to “predict” terrible market events they helped to create while at the same time misrepresenting the reasons behind them.
The point is, ZIRP has done the job it was meant to do. There is no longer any reason for the Fed to leave it in place.
Get Ready For QE4
Again, don’t count on it. Or at the very least, don’t expect renewed QE to have any lasting effect on the market if it is initiated.
There is truly no point to the launch of a fourth QE program, but do expect that the Fed will plant the possibility in the media every once in a while to mislead investors. First, the Fed knows that it would be an open admission that the last three QE’s were an utter failure, and while their job is to dismantle the U.S. economy, I don’t think they are looking to take immediate blame for the whole mess. QE4 would be as much a disaster as the ECB’s last stimulus program was in Europe, not to mention the past several stimulus actions by the PBOC in China. I’ll say it one more time – fiat stimulus has a shelf life, and that shelf life is over for the entire globe. The days of artificially supported markets are nearly done and they are never coming back again.
I see little advantage for the Fed to bring QE4 into the picture. If the goal is to derail the dollar, that action is already well underway as the IMF carefully sets the stage for the Yuan to enter the SDR global currency basket next year, threatening the dollar’s world reserve status. China also continues to dump hundreds of billions in U.S. treasuries inevitably leading to a rush to a dump of treasuries by other nations. The dollar is a dead currency walking, and the Fed won’t even have to print Weimar Germany-style in order to kill it.
It’s Not As Bad As It Seems
Yes, it is exactly as bad as it seems if not worse. When the Dow can open 1000 points down on a Monday and China can lose all of its gains for 2015 in the span of a few weeks despite institutionalized stimulus measures lasting years, then something is very wrong. This is not a “hiccup”. This is not a correction which has already hit bottom. This is only the beginning of the end.
Stocks are not a predictive indicator. They do not follow positive or negative fundamentals. Stocks do not crash before or during the development of an ailing economy. Stocks crash after the economy has already gone comatose. Stocks crash when the system is no longer salvageable. Since 2008, nothing in the global financial structure has been salvaged and now the central banking edifice is either unable or unwilling (I believe both) to supply the tools to allow us even to pretend that it can be salvaged. We’re going to feel the hurt now, all while the establishment tells us the whole thing is in our heads.
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For the benefit of the cognitive dissonant three legged bulls, who deny, deny, deny, at least consider what a repeat of the 1929 collapse would be like in the mist of a fully equipped tyrannical MILITARISED POLICE, FORCE, and a society like we presently live in. In 1929 most of the population knew the difference between a screw-driver and a pair of pliers, and today’s majority could not pack a bag of groceries, let alone take care of their selves and family. Without the connivances we have today they will go completely berserk. No gas, no food, no temperature controlled environment, no personal protection or social services, no communication!
Just take today’s wiz-bang cell-phones away, and this society will shit their pants, and be obedient, appreciative, slaves. Common Core Has Won The Day.
A SOCIETY THAT DOES NOT KNOW HOW TO SURVIVE, WILL NOT SURVIVE.