
By Jacob G. Hornberger
Source: Activist Post
Inadvertently released federal documents reveal that U.S. officials have apparently secured a secret indictment against Julian Assange, the head of WikiLeaks who released secret information about the internal workings of the U.S. national-security establishment. In any nation whose government is founded on the concept of a national-security state, that is a cardinal sin, one akin to treason and meriting severe punishment.
Mind you, Assange isn’t being charged with lying or releasing false or fraudulent information about the U.S. national-security state. Everyone concedes that the WikiLeaks information was authentic. His “crime” was in disclosing to people the wrongdoing of the national-security establishment. No one is supposed to do that, even if the information is true and correct.
It’s the same with Edward Snowden, the American contractor with the CIA and the NSA who is now relegated to living in Russia. If Snowden returns home, he faces federal criminal prosecution, conviction, and incarceration for disclosing secrets of the U.S. national-security establishment. Again, his “crime” is disclosing the truth about the internal workings of the national-security establishment, not disseminating false information.
Such secrecy and the severe punishment for people who disclose the secrets to the public were among the things that came with the conversion of the federal government to a national-security state.
Recall that when the U.S. government was called into existence by the Constitution, it was a type of governmental structure known as a limited-government republic. Under that type of governmental structure, the federal government’s powers were extremely limited. The only powers that federal officials could lawfully exercise were those few that were enumerated in the Constitution itself.
Under the republic form of government, there was no enormous permanent military establishment, no CIA, and no NSA, which are the three components of America’s national-security state. The last thing Americans wanted was that type of government. In fact, if Americans had been told that the Constitution was going to bring into existence a national-security state, they never would have approved the deal and would have continued operating under the Articles of Confederation, a type of governmental system where the federal government’s powers were so few that it didn’t even have the power to tax.
Under the republic, governmental operations were transparent. There was no such thing as “state secrets” or “national security.” Except for the periodic backroom deals in which politicians would make deals, things generally were open and above-board for people to see and make judgments on.
That all changed when the federal government was converted from a limited-government republic to a national-security state after World War II. Suddenly, the federal government was vested with omnipotent powers, so long as they were being exercised by the Pentagon, the CIA, or the NSA in the name of “national security.”
Interestingly enough, the conversion of the federal government to a national-security state was not done through constitutional amendment. Nonetheless, the federal judiciary has long upheld or simply deferred to the exercise of omnipotent powers by the national-security establishment.
An implicit part of the conversion was that the Pentagon, the CIA, and the NSA would be free to exercise their omnipotent powers in secret. Secrecy has always been a core element in any government that is structured as a national-security state, especially when it involves dark, immoral, and nefarious powers that are being exercised for the sake of “national security.”
One action that oftentimes requires the utmost in secrecy involves assassination, which is really nothing more than legalized murder. Not surprisingly, many national-security officials want to keep their role in state-sponsored murder secret. Another example is coups initiated in foreign countries. U.S. officials bend over backwards to hide their role in such regime-change operations. And then there are the surveillance schemes whereby citizens are foreigners are spied up and monitored. Kidnapping, indefinite detention, and torture are still more examples.
Of course, these are the types of things that we ordinarily identify with totalitarian regimes. The reason for that is that a national-security state governmental system is inherent to totalitarian regimes. For example, the Nazi government, which was a national-security state too, had an enormous permanent military establishment and a Gestapo, which wielded the powers of assassination, indefinite detention, torture, and secret surveillance. And not surprisingly, to disclose the secrets of German’s national-security state involved severe punishment.
But it’s not just Nazi Germany. There are many other examples of totalitarian regimes that are based on the concept of national security and structured as a national-security state. Chile under Pinochet. The Soviet Union. Communist China. North Korea. Vietnam. Egypt. Pakistan. Iraq. Afghanistan. Saudi Arabia. Turkey, Myanmar. And the United States. The list goes on and on.
And every one of those totalitarian regimes has a state-secrets doctrine, the same doctrine that the Pentagon, CIA, and NSA have.
A newspaper in Vietnam, which of course is ruled by a communist regime, reported that a Vietnamese citizen named Phan Van Anh Vu was sentenced to 9 years in prison for “deliberately disclosing state secrets.”
A website for the Committee to Protect Journalists reported that the Chinese communist regime charged a Chinese journalist named Yang Xiuqiong with “illegally providing state secrets overseas.” The Chinese Reds have also charged a prominent environmental activist named Liu Shu with “revealing state secrets related to China’s counterespionage work.”
The military dictatorship in Myanmar convicted two Reuters reporters for violating the country’s law that prohibits the gathering of secret documents to help an enemy.
RT reports that the Russian military will “launch obligatory courses on the protection of state secrets starting next year.
US News reports that the regime in Turkey is seeking the extradition from Germany of Turkish journalist Can Dunbar, who was convicted of revealing state secrets.
Defenders of Assange and Snowden and other revealers of secrets of the U.S. national security state point to the principles of freedom of speech and freedom of the press to justify their disclosures.
I’ve got a better idea: Let’s just dismantle America’s decades-long, nightmarish Cold War-era experiment with the totalitarian structure known as a national-security state and restore a limited-government republic to our land.

By Caitlin Johnstone
Source: CaitlinJohnstone.com
The frenzied, hysterical Russia narrative being promoted day in and day out by western mass media has had two of its major stories ripped to shreds in the last three days.
A report seeded throughout the mainstream media by anonymous intelligence officials back in September claimed that US government workers in Cuba had suffered concussion-like brain damage after hearing strange noises in homes and hotels with the most likely culprit being “sophisticated microwaves or another type of electromagnetic weapon” from Russia. A recording of one such highly sophisticated attack was analyzed by scientists and turned out to be the mating call of the male indies short-tailed cricket. Neurologists and other brain specialists have challenged the claim that any US government workers suffered any neurological damage of any kind, saying test results on the alleged victims were misinterpreted. The actual story, when stripped of hyperventilating Russia panic, is that some government workers heard some crickets in Cuba.
Another report which dominated news headlines all of yesterday claimed that former Trump campaign manager Paul Manafort (the same Paul Manafort who the Guardian falsely claimed met with Julian Assange in the Ecuadorian embassy) had shared polling data with a Russian associate and asked him to pass it along to Oleg Deripaska, who is often labeled a “Russian oligarch” by western media. The polling data was mostly public already, and the rest was just more polling information shared in the spring of 2016, but Deripaska’s involvement had Russiagaters burning the midnight oil with breathless excitement. Talking Points Memo‘s Josh Marshall went so far as to publish an article titled “The ‘Collusion’ Debate Ended Last Night”, substantiating his click-generating headline with the claim that “What’s crystal clear is that the transfer to Kilimnik came with explicit instructions to give the information to Deripaska. And that’s enough.”
Except Manafort didn’t give any explicit instructions to share the polling data with Deripaska, but with two Ukrainian oligarchs (who are denying it). The New York Times was forced to print this embarrassing correction to the story it broke, adding in the process that Manafort’s motivation was likely not collusion, but money.
These are just the latest in a long, ongoing pattern of terrible mass media debacles as reporters eager to demonstrate their unquestioning fealty to the US-centralized empire fall all over themselves to report any story that makes Russia look bad without practicing due diligence. The only voices who have been questioning the establishment Russia narrative that is being fed to mass media outlets by secretive government agencies have been those which the mass media refuses to platform. Alternative media outlets are the only major platforms for dissent from the authorized narratives of the plutocrat-owned political/media class.
Imagine, then, how disastrous it would be if these last strongholds of skepticism and holding power to account were removed from the media landscape. Well, that’s exactly what a shady organization called NewsGuard is trying to do, with some success already.
A new report by journalist Whitney Webb for MintPress News details how NewsGuard is working to hide and demonetize alternative media outlets like MintPress, marketing itself directly to tech companies, social media platforms, libraries and schools. NewsGuard is led by some of the most virulently pro-imperialist individuals in America, and its agenda to shore up narrative control for the ruling power establishment is clear.
The product which NewsGuard markets to the general public is a browser plugin which advises online media consumers whether a news media outlet is trustworthy or untrustworthy based on a formula with a very pro-establishment bias which sees outlets like Fox News and the US propaganda outlet Voice of America getting trustworthy ratings while outlets like RT get very low ratings for trustworthiness. This plugin dominates the bulk of what comes up when you start researching NewsGuard, but circulating a plugin which individual internet users can voluntarily download to help their rulers control their minds is not one of the more nefarious agendas being pursued by this company. The full MintPress article gives a thorough breakdown of the yucky things NewsGuard has its fingers in, but here’s a summary of five of its more disturbing revelations:
1. The company has created a service called BrandGuard, billed as a “brand safety tool aimed at helping advertisers keep their brands off of unreliable news and information sites while giving them the assurance they need to support thousands of Green-rated [i.e., Newsguard-approved] news and information sites, big and small.” Popularizing the use of this service will attack the advertising revenue of unapproved alternative media outlets which run ads. NewsGuard is aggressively marketing this service to “ad tech firms, leading agencies, and major advertisers”.
2. NewsGuard’s advisory board reads like the fellowships list of a neocon think tank, and indeed one of its CEOs, Louis Gordon Crovitz, is a Council on Foreign Relations member who has worked with the American Enterprise Institute and Heritage Foundation. Members of the advisory board include George W Bush’s Secretary of Homeland Security Tom Ridge, deep intelligence community insider Michael Hayden, and the Obama administration’s Richard Stengel, who once publicly supported the need for domestic propaganda in the US. All of these men have appeared in influential think tanks geared toward putting a public smiley face on sociopathic warmongering agendas.
3. Despite one of its criteria for trustworthy sources being whether or not they are transparent about their funding, the specifics of NewsGuard’s financing is kept secret.
4. NewsGuard is also planning to get its news-ranking system integrated into social media outlets like Facebook and Twitter, pursuing a partnership which will make pro-establishment media consumption a part of your experience at those sites regardless of whether or not you download a NewsGuard app or plugin.
5. NewsGuard markets itself to state governments in order to get its plugin installed in all of that state’s public schools and libraries to keep internet users from consuming unauthorized narratives. It has already succeeded in accomplishing this in the state of Hawaii, with all of its library branches now running the NewsGuard plugin.
https://twitter.com/Daniel_Rubino/status/1081271640925921280
We may be absolutely certain that NewsGuard will continue giving a positive, trustworthy ranking to the New York Times no matter how many spectacular flubs it makes in its coverage of the establishment Russia narrative, because the agenda to popularize anti-Russia narratives lines up perfectly with the neoconservative, government agency-serving agendas of the powers behind NewsGuard. Any attempt to advance the hegemony of the US-centralized power establishment will be rewarded by its lackeys, and any skepticism of it will be punished.
Whoever controls the narrative controls the world. Ruling power’s desire to regulate people’s access to information is so desperate that it has become as clumsy and ham-fisted as a teenager pawing at his date in the back seat of a car, and it feels about as enjoyable. They’re barely even concealing their desire to control our minds anymore, so it shouldn’t be too difficult to wake everyone up to their manipulations. We need to use every inch of our ability to communicate with each other before it gets shut down for good.
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By Gordon Duff
Source: New Eastern Outlook
As we enter 2019, one thing above all others is clear, the mechanisms of human engagement, education, media and information, even what passes for human contact through social media and email, is all subjected to “algorithms,” whatever those are.
It was Snowden that brought it to our attention, from the Guardian back in 2014:
“Increasingly, we are watched not by people but by algorithms. Amazon and Netflix track the books we buy and the movies we stream, and suggest other books and movies based on our habits. Google and Facebook watch what we do and what we say, and show us advertisements based on our behavior. Google even modifies our web search results based on our previous behavior. Smartphone navigation apps watch us as we drive, and update suggested route information based on traffic congestion. And the National Security Agency, of course, monitors our phone calls, emails and locations, then uses that information to try to identify terrorists.”
Documents provided by Edward Snowden and revealed by the Guardian today show that the UK spy agency GHCQ, with help from the NSA, has been collecting millions of webcam images from innocent Yahoo users. And that speaks to a key distinction in the age of algorithmic surveillance: is it really okay for a computer to monitor you online, and for that data collection and analysis only to count as a potential privacy invasion when a person sees it? I say it’s not, and the latest Snowden leaks only make more clear how important this distinction is.”
When we look back on 2014 from where we are today, Edward Snowden’s warnings of an Orwellian nightmare seem innocent. Maybe it was Donald Trump that opened our eyes, if so, whatever contribution history attributes to him, he might well want to hang his hat on this one.
The fake science of intruding into lives in order to recognize and control “influencers” began in the private sector and was “tuned up” for political races, crime and terrorism prevention and more.
By “more,” we mean “dumbing down” the “masses,” as they are called, presenting reality as a consumer product, custom engineered to be believable, to create drama or fear, to raise concerns of imaginary threats, to distract, and, above all, to control.
Social scientists have postulated that humans can actually be programmed to respond to the most basic stimuli, touch, hearing, taste, based on “fake” information, that the human mind can be fooled into filtering out such basic sensory responses as smell.
The basic synaptic connections that tie sensory input to ideas or concepts, let’s look at one glaring example. Try to say the word “Palestinian” without following it with “terrorist.”
Then again, let’s go back one more step and define the difference between an “armed militant” and a “freedom fighter.” Nothing here is new, the rules were laid out a century ago.
Einstein predicted this in his “Autobiographical notes” on epistemology. It was some 50 years ago when Dr. John Ward of Michigan State University pounded this into my head in his Philosophy of Science lectures. “The relationship between sense experiences and concepts is entirely intuitive as are the relationships between all concepts. You see what you see, not because of what you see but because of what you think.”
It was quite one thing when such pursuits were endeavors of science and philosophy at our great universities, but it became something quite different when Wilson Bryan Key, back in 1973, wrote the seminal work, Subliminal Seduction, demonstrating how altered images could reach into the most basic primitive drives, the “reptile brain,” as it were, driving an unknowing viewer to alter both perceptions and reasoning, even toward lowering human survivability.
Key’s imagery, taken from popular magazines, strange figures of death’s heads or nude women, airbrushed into ice cubes, were an opening salvo. If thanatotic drive could sell liquor or cigarettes, how easy might it be to sell a war?
No more films like Sergeant York or Red Dawn needed, or perhaps only as a “supporting actor,” pounding the nail in just a bit more.
Twenty years prior to the publication of Key’s work, the US government began a project known as MK Ultra. Though it officially ended in 1973 after 20 years of poorly documented “research” into every form of psychological manipulation, in truth, MK Ultra and other programs as well, simply “went dark.”
The reason, of course, we are traveling his historical path today is that those programs, after not 50 but 65 years of still classified efforts, after billions of dollars in black funding, programs with no oversite, programs carried out on unsuspecting citizens, sometimes entire cities, sometimes on unwilling victims in “black sites,” are the precursors to the world of Google and Facebook today.
Looking at 2018, there were some obvious “projects,” the White Helmet staged fake gas attacks for sure. This involved Facebook posts, fake videos, but the key is that they were channeled directly to the President of the United States who had been programmed to ignore credible intelligence sources. Thus, Trump ordered an attack on Syria entirely based on a Facebook post.
But there are millions of Facebook posts every day. Why did he get this one? Who put it in front of him? Is Trump surrounded by handlers, traitors?
You see, it is one thing when something is put on the internet, the equivalent of leaving a post-it note in a public restroom on the “wrong side of town.” It is quite something else when the message, a parentless bastard of disinformation, is given to a man who has, according to sources within the White House, openly advocated use of tactical nuclear weapons against Syrian people in retribution for wildly fabricated accusations.
Consider the implications, even if someone, perhaps General Mattis, had taken the nuclear option off the table. Simply put, it lowers the standards of the United States exercising war powers in attacking a sovereign nation to an anonymous social media post.
Again, we ask, it is one thing posting something malicious and dangerous and quite something else when a national leader with access to nuclear weapons is programmed to seek out and act upon same.
Then again, were any other president to order a missile strike based on, well, based on nothing whatsoever, not even a decent lie, one might expect negative repercussions.
Let’s take a second to juxtapose. If a fake public narrative exists, and it is reasonable to postulate that “the public,” such as it is, is more than aware that a “real world” exists in which what is generally known and accepted as true is, in fact, utterly false.
In fact, some of the most popular television series of the past decades have exposed the flummery of generally accepted history. Shows like The Secret History of World War II and many if not endless others, feed a hungry public a continual diet of debunked reality.
What we are left with is this, an ongoing process, a spiral as it were, around and down, around and down, ever faster, ever more hopeless, intrusion into lives, into thoughts, planted feelings, manipulated responses, altered perceptions, until nothing can be trusted, especially not ourselves.
Gordon Duff is a Marine combat veteran of the Vietnam War that has worked on veterans and POW issues for decades and consulted with governments challenged by security issues. He’s a senior editor and chairman of the board of Veterans Today, especially for the online magazine “New Eastern Outlook.”
https://journal-neo.org/2019/01/09/lobotomized-secrecy-and-the-dis-enlightenment/

By Chiara Pascali
Source: GoodShortFilms
Try to google the word Happiness, the first (sponsored) result of your search will be shophappiness.com. Happiness can be bought. This is a plus point for the British animator and artist Steve Cutts, director of the short film Happiness.
Cutts imagines humanity as a horde of rats, adored by the marketing god, bewitched by Black Friday or Cyber Monday. Loose cannon looking for the last offer. Happiness is the penny that is always missing at the prices of super discount products. Happiness is a commodity exchange of the new capitalism.
Happiness, by definition, is the moment in which all one’s desires are satisfied, but humanity always wants more. Like so many rats, we are looking for compulsive crumbs of happiness. Producers sow these crumbs on online and offline advertisements.
There are products that answer any type of question, even for the inability to endure frustration of being constantly dissatisfied.
This limitless race is rendered in an excellent way by the images of Happiness, full of details and oversized information. Chaos. Steve Cutts describes the irrepressible frenzy of modern society, the compulsive and often illogical search to possess new objects, and lastly, the money, motor that moves the world.
Happiness is a short economic textbook and an explicit critique of contemporary society. The final question does not spare anyone – are we trapped?

By CH
Source: The Hipcrime Vocab
“He who controls the past, controls the future; and he who controls the present, controls the past.”–George Orwell
“The mistake of judging the men of other periods by the morality of our own day has its parallel in the mistake of supposing that every wheel and bolt in the modern social machine had its counterpart in more rudimentary societies…”–H.S. Maine
“The past is a foreign country; they do things differently there.” –L.P. Hartley
I’ve often referred to the “Flintstonization of history”—a concept I borrowed from the book Sex at Dawn. It’s the tendency to project our present-day circumstances onto the past, assuming that people basically thought and acted much as we do. But when we do that, we bring our “modern” sensibilities and worldview along with us. And those have been decisively shaped by the time and culture in which we live.
Today I’d like to introduce a related concept–the retconning of history.
Looking back, that’s been the theme of a lot of my writing over the past year. I’ve looked at a lot of history which challenges and overturns the conventional narrative that our present-day circumstances and social organization are basically the same as past societies, except with better technology and a few more creature comforts (i.e. the past, but with cell phones). Or that they are the way things have always been, and that there are no alternatives.
Now, most of you probably know what retconning is. It is short for the phrase “retroactive continuity”. In order to make a narrative coherent, the authors “rewrite” (or simply ignore) what has occurred in previous episodes or iterations of a long-running franchise in order to maintain continuity with the ongoing “new” narrative arc and characters. The phrase originated with comic books, and is typically used in reference to films, television shows, books, video games, etc.
From there, the word has passed into common parlance. Normally, retcon is still used in the context of a work of fiction. However, I’ve seen the word spread beyond just talking about movies and TV shows to the world in general. When people say retcon now, they are usually referring to an attempt to “rewrite” past events by deliberately distorting them or altering the record after the fact. That is, “[people] tell themselves a different story about what happened in prior events in order to maintain consistency with their current circumstances.” That story may include a blatant distortion of facts and a general disregard for reality. Much of this is derived from our current political situation. A politician may suddenly reverse their position, and then declare that what came before didn’t happen (“fake news”), or simply ignore it altogether if it doesn’t fit with the narrative “spin” of the political parties.
At it’s heart, it is an attempt to “erase” or “rewrite” the past for the sake of present circumstances. As one of it’s earliest descriptions had it, “retroactive continuity ultimately means that history flows fundamentally from the future into the past.”
What’s any of this got to do with history? It strikes me that much of what we learn about history are attempts to “retcon” the past.
What do I mean by this? It seems that history often adopts a “modern” point of view to explain past events. In this narrative, we were always heading to exactly where we are: globalized free-market corporate monopoly capitalism.This is done to depict our present circumstances not as deliberately engineered, or contingent on any historical circumstances, or political choices, but rather as something “natural” and just an expression of unchanging human nature. With this retconning, we are unable to think of different ways of organizing things, because those ways—even in the very recent past—have been retconned out of history. Even things in recent living memory—such as not going into debt for an education, or being able to afford a single family house on 25 percent of your income—are retconned to make it so that they never happened.
Here are just a few of the major retcons I have discovered over the past year or so:
1. Economists tend to depict all of human history as heading towards “free and open” markets, if only government would only just “get out of the way” and drop all restrictions and regulations on merchant princes and wealthy oligarchs. That is, globalized corporate free trade is “natural” (as is currency), and collective governance is “artificial” and unnecessary. Our “natural instinct” is to “truck, barter and exchange” declared Adam Smith. John Locke argued that the reason governments came to exist was to protect and secure private property, and that they should do little else besides this.
Of course, all of this is false. For example, an attempt at retconning history was engaged in by economists Santhi Hejeebu and Deirdre McCloskey (of ‘bourgois virtues’fame) attempting to refute some of Karl Polanyi’s book The Great Transformation. As political economist Mark Blyth countered, citing the works of Polanyi and Albert Hirschmann:
“While gain-seeking has indeed existed throughout history…the historical oddity was that gain-seeking became equated with market transactions only relatively recently. This was a qualitative and not a quantitative change; otherwise Incas, Mayans, Romans, and contemporary Britons were/are all living in societies that were more or less similar in their economic structure, despite the differences in, for example, the presence of slaves.”
“Painting the history of all hitherto existing societies as the history of capitalism in vitro probably obscures more economic history than it illuminates…capitalism did not simply evolve, it was argued for. It was propagandized by Scottish enlightenment intellectuals, English liberals, and French physiocrats long “before its triumph”. And it was as much a project of governance; limiting the state; constructing the commodified individual; building a singular notion of economically based self-interest, as much as it was one of creating wealth…”
“Capitalism was created, it did not just ‘happen’, and labeling all hitherto existing societies as ‘almost capitalism’ hardly erases the distinctions between historical periods and economic systems. The fact the ‘we’ today accept Smith far more readily than ‘we’ accept Polanyi speaks directly to the power of ideas rather than the discovery of facts…”
The great transformation in understanding Polanyi: Reply to Hejeebu and Mccloskey(Critical Review)
As Polanyi himself summed it up: “Laissez-faire was planned, planning was not”. From The Great Transformation:
Indeed, on the evidence available it would be rash to assert that local markets ever developed from individual acts of barter.
Obscure as the beginnings of local markets are, this much can be asserted: that from the start this institution was surrounded by a number of safeguards designed to protect the prevailing economic organization of society from interference on the part of market practices. The peace of the market was secured at the price of rituals and ceremonies which restricted its scope while ensuring its ability to function within the given narrow limits. The most significant result of markets—the birth of towns and urban civilization—was, in effect, the outcome of a paradoxical development. Towns, insofar as they sprang from markets, were not only the protectors of those markets, but also the means of preventing them from expanding into the countryside and thus encroaching on the prevailing economic organization of society…
Such a permanent severance of local trade and long-distance trade within the organization of the town must come as another shock to the evolutionist, with whom things always seem so easily to grow into one another. And yet this peculiar fact forms the key to the social history of urban life in Western Europe…Internal trade in Western Europe was actually created by the intervention of the state.Right up to the time of the Commercial Revolution what may appear to us as national trade was not national, but municipal…The trade map of Europe in this period should rightly show only towns, and leave blank the countryside—it might as well have not existed as far as organized trade was concerned. So-called nations were merely political units, and very loose ones at that, consisting economically of innumerable smaller and bigger self sufficing households and insignificant local markets in the villages. Trade was limited to organized townships which carried it on either locally, as neighborhood trade, or as long-distance trade—the two were strictly separated, and neither was allowed to infiltrate into the countryside indiscriminately…neither long-distance trade nor local trade was the parent of the internal trade of modern times—thus apparently leaving no alternative but to turn for an explanation to the deus ex machina of state intervention…
This retconning has been particularly egregious by the debunked “Austrian economic school” which was expressly created to overturn history and rewrite it for the benefit of capitalists and the wealthy. Michael Hudson, an economist who probably knows more about ancient economic organization than anyone since Polanyi, writes:
…Karl Polanyi[‘s] doctrine was designed to rescue economics from [the Austrian] school, which makes up a fake history of how economics and civilization originated.
One of the first Austrian’s [sic] was Carl Menger in the 1870s. His “individualistic” theory about the origins of money – without any role played by temples, palaces or other public institutions – still governs Austrian economics. Just as Margaret Thatcher said, “There’s no such thing as society,” the Austrians developed a picture of the economy without any positive role for government. It was as if money were created by producers and merchants bartering their output. This is a travesty of history.
All ancient money was issued by temples or public mints so as to guarantee standards of purity and weight. You can read Biblical and Babylonian denunciation of merchants using false weights and measures so see why money had to be public. The major trading areas were agora spaces in front of temples, which kept the official weights and measures. And much exchange was between the community’s families and the public institutions.
Most important, money was brought into being not for trade (which was conducted mainly on credit), but for paying debts. And most debts were owed to the temples and palaces for pubic services or tribute. But to the Austrians, the idea was that anything the government does to protect labor, consumers and society from rentiers and grabbers is deadweight overhead.
Above all, they opposed governments creating their own money, e.g. as the United States did with its greenbacks in the Civil War. They wanted to privatize money creation in the hands of commercial banks, so that they could receive interest on their privilege of credit creation and also to determine the allocation of resources.
Rewriting Economic Thought (Michael Hudson)
So we see that in this case that there is a very specific political agenda behind the retconning of history. It’s pressed in economic textbooks and expressly designed to promote a libertarian point of view. Much of retconning history does serve a political agenda that benefits a select group of people.
Trying to analyze all premodern economies as though they were just proto-capitalists lead to all sorts of errors, as Branko Milanovich points out in a recent post:
“The equilibrium (normal) price in a feudal economy, or in a guild system where capital is not allowed to move between the branches will be different from equilibrium prices in a capitalist economy with the free movement of capital. To many economists this is still not obvious. They use today’s capitalist categories for the Roman Empire where wage labor was (to quote Moses Finley) ‘spasmodic, casual and marginal’.”
Marx for me (and hopefully for others too) (globalinequality)
2. The individual has always been the basic unit of social organization. People have always thought of themselves primarily as citizens of territorial nation-states (British, German, French, Canadian, etc.) with well-defined borders. The neolocal monogamous nuclear family is the only natural and logical form of human social organization.
None of these statements are true, of course. Such arrangements are very contingent upon time and place and culture, and often very recent. For most of human history, the nation-state did not exist. There is nothing “natural” about it–it was created from above by oligarchic elites, just like the One Big Market. They are artificial creations.
And while families are, indeed, “natural,” the form they take varies widely. Most families were extended, and consisted of many generations living either on the same land or under the same roof, together with agnatic relations. Who was or was not considered a part of the family had to do with kinship structures, typically encoded into the language and culture.
Extended kinship networks were the primordial form of human social organization (as Lewis Henry Moran discovered). Religion, too, played a significant role, especially ancestor worship, collective rituals, and food-sharing meals and feasts (even bonobos do it).
This was the conclusion made by Henry Sumner Maine by studying ancient legal structures and comparing to them to surviving village communities in India, Java, North America, and elsewhere. He writes, “We have the strongest reason for thinking that property once belonged not to individuals nor even to isolated families, but to larger societies composed on the patriarchal model.” Concerning private property, he concludes,
“…[P]rivate property, in the shape in which we know it, was chiefly formed by the gradual disentanglement of the separate rights of individuals from the blended rights of a community. Our studies…seemed to show us the Family expanding into the Agnatic group of kinsmen, then the Agnatic group dissolving into separate households; lastly the household supplanted by the individual; and it is now suggested that each step in the change corresponds to an analogous alteration in the nature of Ownership.”
“…if it be true that far the most important passage in the history of Private Property is its gradual elimination from the co-ownership of kinsmen, then the great point of inquiry…what were the motives which originally prompted men to hold together in the family union? To such a question, Jurisprudence, unassisted by other sciences, is not competent to give a reply. The fact can only be noted.” (p. 159)
This is why Marxists argued that “primitive communism” was the original form of property ownership, i.e. socialism. Historically, this is correct. The problem was that this was predicated upon extended kinship networks and not large, industrial, nation states, composed of strangers. That is, primitive communism does not scale, which is why market economies came to supplant them over time.
Regarding the “lone individual” posited by Classical Liberals as the primordial atomic unit of society, this, too, is ahistorical. Like the primitive barter economy, anthropology has failed to turn it up anywhere it has looked for it:
It is here that archaic law renders us one of the greatest of its services, and fills up a gap which otherwise could have only been bridged by conjecture. It is full, in all its provinces, of the clearest indications that society in primitive times was not what it is assumed to be at present, a collection of *individuals*. In fact, and in the view of the men who composed it, it was an *aggregation of families*. The contrast may be most forcibly expressed by saying that the *unit* of an ancient society was the Family, or a modern society the individual. We must be prepared to find in ancient law all the consequences of this difference.
[Archaic Law] is so framed as to be adjusted to a system of small independent corporations. It is therefore scanty, because it is supplemented by the despotic commands of the heads of households. It is ceremonious, because the transactions to which it pays regard resemble international concerns much more than the quick play of intercourse between individuals.
Above all…it takes a view of *life* wholly unlike any which appears in developed jurisprudence. Corporations never die, and accordingly primitive law considers the entities with which it deals, i.e. the patriarchal or family groups, as perpetual and inditinguishable…
Ancient Law pp. 134-135
Surveying continental Europe and much of the colonial world, French scholar Emile de Lavaleye came to the same conclusion:
Originally the clan, or village, is the collective body owning the soil ; later on, it is the family, which has all the characteristics of a perpetual corporation. The father of the family is merely the administrator of the patrimony: when he dies, he is replaced by another administrator. There is no place for the testament, nor even for individual succession…Such was also the law everywhere where these communities have existed; and, probably, every nation has passed through the system.
The point of all this, of course, is not to advocate a rewind to the past. Rather, it is to show us that social forms change over time; and what may adaptive in one context (say, Fordism), will not work in another (say, an information economy). Lavaleye points this out himself:
“…the object of this book is not to advocate a return to the primitive agrarian community; but to establish historically the natural right of property as proclaimed by philosophers, as well as to show that ownership has assumed very various forms, and is consequently susceptible of progressive reform.”
3. Everyone before the Industrial Revolution was miserable, sick, and hungry all the time, irrespective of time and place. Life was, as Hobbes argued, “nasty, brutish and short” throughout prehistory before the last hundred years or so. We’ve doubled the human lifespan—a thirty year-old man was considered “old” just a few generations ago.
I’ve written so much disproving this idea that it’s not worth reiterating here. But here is yet another item that shows us that life in the past was not as horrible as it is commonly depicted by the evangelists of the Progress Gospel:
Medieval peasant food was frigging delicious (BoingBoing)
This Reddit Ask Historians question: Was there ever a civilization that had proper nutrition prior to modern society? begs the question. Its very formulation assumes that everyone was malnourished—a product of such retconning. Here are some good answers:
According to my history professor at Dalhousie University, Cynthia Neville (one of the top scholars in early medieval Scottish history), the Scots in medieval times had an incredibly healthy diet compared to many other parts of Europe at the time.
Wheat doesn’t grow well so far north, but hardier grains like oats and barley do quite well, and provide much better staple foodstock, along with many native vegetable varieties. Also, because cows weren’t as viable (except for the wealthiest lowland nobles), they lived on sheep’s milk and goat milk, which are much easier on the human digestive system. Much of their proteins came from seafood, which, as we know today, are loaded with omega fatty acids and essential vitamins.
There was a bit more to it, but that’s about all I can recall off the top of my head from her classes. This is one of the reasons why the Scots had a reputation for being taller and stronger, because their diets and hardy lifestyles kept them fit and healthy.
And:
When the Romans invaded Gaul, they noticed the Gauls were more than a foot taller, on average, than the Romans. This was due to better nutrition. Many prehistoric people’s had great nutrition. They were defeated by “civilized” people’s who had the advantages of greater numbers and organization. The same was true of the Indians of Massachusetts, when the Pilgrims arrived.
Not all prehistoric people had good nutrition, and not so people’s proliferate societies had bad nutrition. The Norse (Vikings) were dairy farmers and fishermen, and had excellent nutrition, like the Scotch, in medieval times.
4. People need “jobs” in order to feel valuable, or else they will go crazy. That is, we need to find a willing buyer for our labor, or we will feel like a useless burden on society. Furthermore, working forty hours a week is something we’ve just always done since forever. We would all be bored otherwise.
Of course, “jobs” are very recent invention. Most people in the past did not have formalized “jobs”—wage-labor was actually seen as a kind of slavery for much of ancient history. Yet today we’re told that jobs are an absolute necessity to feel “meaningful” and to have any kind of social outlet in today’s society.
Moreover, even when wages were paid, it was for a specific task and a specific duration (say, bringing in the harvest), not selling precisely 40 hours a week of your time to the highest bidder. Modern jobs are more of a babysitting operation than anything else. Of course people in earlier times had occupations and professions—farmers, craftsmen, warriors, artisans, clerks, priests, and so on. One of the biggest challenges capitalism faced was overcoming the previous work/leisure patterns and “disciplining” workers. Ryan Cooper sums up the very novelty of these ‘eternal’ notions:
The idea that work is a bedrock of society, that absolutely everyone who is not too old, too young, or disabled must have a job, was not handed down on tablets from Mount Sinai. It is the result of a historical development, one which may not continue forever. On the contrary, based on current trends, it is already breaking down.
The history of nearly universal labor participation is only about a century and a half old. Back in the early days of capitalism, demand for labor was so strong that all the ancient arrangements of society and family were shredded to accommodate it. Marx’s Capital famously described how women and very young children were press-ganged into the textile mills and coal mines, how the nighttime was colonized for additional shifts, and how capitalists fought to extend the working day to the very limits of human endurance (and often beyond).
The resulting misery, abuse, and wretchedness were so staggering, and the resulting class conflicts so intense, that various hard-won reforms were instituted: the eight-hour day, the weekend, the abolition of child labor, and so forth.
But this process of drawing more people into the labor force peaked in the late 1990s, when women finally finished joining the labor force (after having been forced out to make room for returning veterans after World War II). The valorization of work as the source of all that is good in life is to a great degree the result of the need to legitimate capital’s voracious demand for labor.
America is running out of jobs. It’s time for a universal basic income (The Week)
And here’s investigative journalist Yasha Levine recounting part of capitalism that have been retconned out of existence, citing the underappreciated work of economist Michael Perelman:
One thing that the historical record makes obviously clear is that Adam Smith and his laissez-faire buddies were a bunch of closet-case statists, who needed brutal government policies to whip the English peasantry into a good capitalistic workforce willing to accept wage slavery.
Francis Hutcheson, from whom Adam Smith learned all about the virtue of natural liberty, wrote: ”it is the one great design of civil laws to strengthen by political sanctions the several laws of nature. … The populace needs to be taught, and engaged by laws, into the best methods of managing their own affairs and exercising mechanic art.”
Yep, despite what you might have learned, the transition to a capitalistic society did not happen naturally or smoothly. See, English peasants didn’t want to give up their rural communal lifestyle, leave their land and go work for below-subsistence wages in shitty, dangerous factories being set up by a new, rich class of landowning capitalists. And for good reason, too. Using Adam Smith’s own estimates of factory wages being paid at the time in Scotland, a factory-peasant would have to toil for more than three days to buy a pair of commercially produced shoes. Or they could make their own traditional brogues using their own leather in a matter of hours, and spend the rest of the time getting wasted on ale. It’s really not much of a choice, is it?
But in order for capitalism to work, capitalists needed a pool of cheap, surplus labor. So what to do? Call in the National Guard!
Faced with a peasantry that didn’t feel like playing the role of slave, philosophers, economists, politicians, moralists and leading business figures began advocating for government action. Over time, they enacted a series of laws and measures designed to push peasants out of the old and into the new by destroying their traditional means of self-support.
“The brutal acts associated with the process of stripping the majority of the people of the means of producing for themselves might seem far removed from the laissez-faire reputation of classical political economy,” writes Perelman. “In reality, the dispossession of the majority of small-scale producers and the construction of laissez-faire are closely connected, so much so that Marx, or at least his translators, labeled this expropriation of the masses as “primitive accumulation.”
Yasha Levine: Recovered Economic History – “Everyone But an Idiot Knows That The Lower Classes Must Be Kept Poor, or They Will Never Be Industrious” (Naked Capitalism)
Indeed, average non-agricultural workers had much more autonomy and leisure time in the past, according to Perelman:
A medieval peasant had plenty of things to worry about, but the year-round control of daily life was not one of them. Perelman points out that in pre-capitalist societies, people toiled relatively few hours over the course of a year compared to what Americans work now. They labored like dogs during the harvest, but there was ample free time during the off-seasons. Holidays were abundant – as many as 200 per year. It was Karl Marx, in his Theory of Alienation, who saw that modern industrial production under capitalist conditions would rob workers of control of their lives as they lost control of their work. Unlike the blacksmith or the shoemaker who owned his shop, decided on his own working conditions, shaped his product, and had a say in how his goods were bartered or sold, the modern worker would have little autonomy. His relationships with the people at work would become impersonal and hollow.
Clearly, the technological wonders of our capitalist system have not released human beings from the burden of work. They have brought us more work. They have not brought most of us more freedom, but less.
Fifty Shades of Capitalism: Pain and Bondage in the American Workplace (Naked Capitalism)
Yet now we’re told that we need “jobs” to have any sort of meaning? Really?? WTF??? The vast majority of human existence has occurred outside of formalized wage work, as anthropologist James Suzman points out. Yet society will fall apart if we don’t submit ourselves to worker ‘discipline’ and scientific management? I don’t buy it. Whom does this narrative benefit, anyway?
See also this post from Reddit: What did an average day look like in medieval Europe?And this: Myths about the Medieval Times? Lots of good debunking in that last one.
In addition, laborers who recalled the previous autonomous lifeways–as late as the eighteenth century–were much more resistant to the constraints and insults of corporate capitalism. Now that the past has been retconned, we no longer even remember those past ways of being. Why is there no longer any resistance to the crushing or workers? Why do we not resist, even celebrate, the fortunes of today’s robber barons, unlike our forefathers? American resistance to our ruling elites has vanished. A lot of it has to do with the retconning of history, as this review of the Steve Fraser’s excellent book The Age of Acquiescence makes clear:
The fight against slavery had loosened the tongues of capitalism’s critics, forging a radical critique of the market’s capacity for barbarism. With bonded labor now illegal, the target pivoted to factory “wage slavery.” This comparison sounds strange to contemporary ears, but as Fraser reminds us, for European peasants and artisans, as well as American homesteaders, the idea of selling one’s labor for money was profoundly alien.
This is key to Fraser’s thesis. What fueled the resistance to the first Gilded Age, he argues, was the fact that many Americans had a recent memory of a different kind of economic system, whether in America or back in Europe. Many at the forefront of the resistance were actively fighting to protect a way of life, whether it was the family farm that was being lost to predatory creditors or small-scale artisanal businesses being wiped out by industrial capitalism. Having known something different from their grim present, they were capable of imagining — and fighting for — a radically better future.
It is this imaginative capacity that is missing from our second Gilded Age, a theme to which Fraser returns again and again in the latter half of the book. The latest inequality chasm has opened up at a time when there is no popular memory — in the United States, at least — of another kind of economic system. Whereas the activists and agitators of the first Gilded Age straddled two worlds, we find ourselves fully within capitalism’s matrix. So while we can demand slight improvements to our current conditions, we have a great deal of trouble believing in something else entirely.
A similar point is made in this review of the book in the London Review of Books:
Resistance to capitalism, it appeared, could look back as well as forwards; it was rooted not only in utopian visions of the future but also in concrete experience of the present and past, in older ways of being in the world, depending on family, craft, community, faith – all of which were threatened with dissolution (as Marx and Engels said) in ‘the icy waters of egotistical calculation’. Radical critiques of capitalism might well arise from conservative commitment to pre-capitalist ways of life, or memories of that life.
This wasn’t only an American pattern. E.P. Thompson, in The Making of the English Working Class (1963), rescued the Luddites and other artisans from ‘the enormous condescension of posterity’ by showing that their apparently reactionary attachments to custom and tradition created the leading edge of working-class consciousness. Soon American historians were making similar discoveries.
The Thompsonian history of the working class revealed a common pattern on both sides of the Atlantic: as workers became less grounded in traditional ways, their critique of capitalism tended to soften.
The Long Con (The London Review of Books)
5. New technology and innovation increases leisure time.The Industrial Revolution was accomplished purely by technological advances with no dislocation or bloodshed, and it made everyone better off with no government intervention whatsoever.
If there’s one consistent trend in technology, it’s this – new technology increases the amount of work! Greater leisure has only and ever been delivered due to worker insurrection and deliberate organization, and not by the “invisible hand” of the Market. Furthermore, entire generations were sacrificed and written out of the historical narrative to make the Industrial Revolution seem like a harmless win-win. As this commenter to Slashdot writes:
“Luddites weren’t just angry conservatives (literal, not political) trying to maintain some mythical “way of life”, it was a movement stated due to massive unemployment brought on by innovation in the textile industry. It became a generic insult because we’re so far removed from their (very real) suffering.”
“There was [sic] close to 80 years of unemployment following the industrial revolution that is seldom talked about (if you took history in high school or college you got maybe a paragraph at best). This is because text book historians like to keep an upbeat tone and because school boards are often staffed by economically conservative (political now) who don’t want anyone speaking ill of capitalism. Go find a book called “A People’s History of the United States” if you want a sense for how screwed up American history actually is.”
Or, just read this post: The US Government Has Always Been a Tool of Greedy Corporations (Vice)
5. Ancient people were uniformly ruled over by evil despots (i.e. ‘Oriental Despotism’). The “West” was all about freedom, justice, and democracy compared to the yoke of despotism the rest of the world lived under in primitive places such as Asia, Africa and the Americas.
As we’ve seen, Classical civilization–from the ancient Greeks to the Romans–was the most slave-driven economy in history to that point (only to be surpassed in the ‘Western’ colonial Americas). While that slavery decayed due to the dissolution of the Roman Empire, subsequent serfdom could hardly be considered freedom. By contrast, not all “primitive” societies were anywhere near as despotic as Western Europe and Imperial China were. That was a retconning of history to depict Western European civilization as “enlightened” in opposition to the ignorant “heathens.” For example, here is an excerpt from the book The Story of Manual Labor:
At no time in the history of ancient Mexico do we find that heartless oppression of the poor by the rich, that lack of humanity toward the wage-worker, that blackens the annals of so many European peoples. Luxury existed in the court of the Montezumas, it is true, but to support that luxury the poorer classes were not plunged into poverty and degradation. They were a simple people, and their needs were small and easily satisfied. Living in a tropical climate, upon a soil that repaid a thousandfold the slightest effort of the farmer; surrounded by forests full of game and rivers teeming with edible fish, the Mexican lived a life of comfort that to the Saxon churl or French bourgeoise of the same day would have seemed idyllic.
The Story of Manual Labor (Archive.org)
There are countless other examples, from long car commutes, to 20+ years of formalized schooling and expensive post-graduate degrees required for a job (or any formalized education at all), but I think you get the point.
As Chris Hedges poignantly writes in his latest book, America: the Farewell Tour:
If we do not know our history and our culture, if we accept the history and culture manufactured for us by the elites, we will never free ourselves from the forces of oppression. The recovery of memory and culture in the 1960s by radical movements terrified the elites. It gave people an understanding of their own power and agency. It articulated and celebrated the struggles of working men and women and the oppressed rather than the mythical beneficence of the powerful. It exposed the exploitation and mendacity of the ruling class. And that is why corporatists spent billions to crush and marginalize these movements and their histories in schools, culture, the press, and in our systems of entertainment.
Not only does the people have no precise consciousness of its own historical identity,” Gramsci lamented under fascism, “it is not even conscious of the historical identity or the exact limits of its adversary.
If we do not know our history we have no point of comparison. We cannot name the forces that control us or see the long continuity of capitalist oppression and resistance… p. 17
Anyway, here’s to a happy (or at least, tolerable) 2019, and I hope you all stick around and continue reading and commenting. Thanks!

By Dmitry Orlov
Source: Club Orlov
Most people are familiar with the game Monopoly. Its goal is to teach capitalist kiddies a valuable lesson about capitalism; namely, that in running a business it isn’t useful to shoot for some happy modicum of accommodation with your competitors or to strive for a sustainable steady state. Instead, what you need to do to survive (never mind win) is to grow as quickly as possible and eat up your competitors alive, or you’ll get eaten up yourself. That’s not just a game; that’s exactly how capitalism actually works, and if that doesn’t work for you (it doesn’t for most people) then that’s exactly how capitalism doesn’t work.
And so the Waltons couldn’t just run Walmart as a mart; they had to make it into a global empire—just in order to survive. Now, most governments in the world realize that this sort of unbridled capitalism is harmful and seek to regulate it. For instance, Russia has a Federal Antimonopoly Service. The US Justice Department has an Antitrust Division, which is aptly named if its mission is to destroy Americans’ trust in their government’s ability to regulate business. It also has a website which currently says: “Due to the lapse in appropriations, Department of Justice websites will not be regularly updated.” Perhaps that’s all right for a country that seeks to monopolize everything—international finance and law, defense procurement and, of course, the dispensation of “freedom and democracy” and “universal values.”
Most people are also familiar with the concept of national debt. The federal debt of the US government currently equals… never mind; it’s going up much faster than you can write it down. If you want to watch it go up real time, you can look it up here. The exact number is useless: if you take a snapshot of it—say, $21,921,420,945,123.00—that will no longer be the payoff amount by the time you write out the check, and if you write out the check, no matter who you are, it will bounce. But it won’t even get that far: if you mail that check to the US Treasury Department, they wouldn’t be able to deposit it because “Due to the lapse in appropriations…” (You get the picture.)
The debt goes up all the time, and the rate at which it goes up is accelerating. The concept of acceleration may not be intuitive for some of you, so let me explain. Debt goes up with some speed. Acceleration is the amount by which that speed increases, measured in, for example, dollars per minute per minute. Calculating it is a fun little arithmetic exercise. During Barak Obama’s reign it went up by $8.6 trillion, starting from $11.6 trillion and gong up to $20.2 trillion. Trump plans to add $4.8 trillion during his first three years. (Relevant numbers can be looked up here).
Thus, Obama’s velocity was $8.6 trillion over 8 years—roughly $1 trillion per year or $2 million per minute while Trump’s velocity is roughly $1.6 trillion per year or a little over $3 million per minute. Therefore, the acceleration is only a few cents per minute per minute—but it sure adds up! Acceleration tends to sneak up on you. For instance, if you want to gain some intuitive appreciation for acceleration due to gravity (9.81m or 32 feet per second per second) then try jumping off a chair while keeping your knees straight. You can also ponder the fact that satellites that fall out of Earth’s orbit tend to burn up on reentry as they decelerate due to friction with the atmosphere.
Any sane, numerate person can tell you that increases in debt are fine provided your revenues are increasing significantly faster, but if that’s not the case then the eventual result is bankruptcy. And that is most definitely not the case. Hence the name of this board game is National Bankruptcy. But I am not sure what the objective of the game should be. Is it to go bankrupt as quickly and efficiently as possible, or is to go bankrupt as slowly and painfully as possible?
I am quite sure that players who aren’t on a path to national bankruptcy would prefer to keep it that way, and would furthermore prefer to be rid of all sovereign debt issued by whoever is going to go bankrupt before that happens. (Russia seems to have that problem solved already while China is far behind.) In any case, I am a very serious person who doesn’t like jokes and doesn’t have time to play games, board games included, so I’ll leave it to others to ponder such questions. Still, the board game metaphor seems useful for discussing this topic.
One problem with playing this game is the problem of scale. People have a problem appreciating such huge numbers. They are familiar with what a dollar is, but what’s a trillion? Here it is, represented as double-stacked pallets of $100 bills.

That seems a bit cumbersome for our board game. Reasonable values for the chips in our National Bankruptcy game would be $100 billion, $500 billion and $1 trillion. We could use a few $5 trillion and $10 trillion chips too, though not too many because I doubt that the game would go on long enough to make them useful.
I propose that for the sake of this game we introduce a handy new unit called a “piffle” which is equal to $100 billion. A trillion is 10 piffles, 10 trillion is 100 piffles. Then our chips can be 1, 5, 10, 50 and 100 piffles. Piffles allow us to express various huge quantities without going through any arithmetic contortions. US federal debt is currently 220 piffles. US trade deficit for 2018 was 6 piffles while the US defense budget was 7 piffles. For 2019 the federal budget deficit (covered by increased borrowing) is 10 piffles and rising while tax revenues are just 3 piffles and falling. The interest payment on federal debt is 3 piffles but with rising interest rates it’s going to 5 piffles within a few years.
Speaking of rising interest rates… just today Trump wished for 0% interest rates again, like Obama had while he was running up his 80 piffles’ worth of debt. But now it’s hovering around 3% and is unlikely to go down no matter what Trump wishes. Why? Well, here’s the reason. The US imports much more than it exports because it can’t afford to or lacks the ability to make all the stuff it needs; that’s why there are 6 piffles’ worth of trade deficit. When other nations sell to the US more than they buy, they end up holding lots of piffles, and since the US needs lots of piffles (remember, the budget deficit is 10 piffles) it makes plenty of sense to borrow that money right back. A little while back it was possible to borrow it back at 0% interest because the US was powerful enough to threaten those who refused to play this game with military annihilation (cue pictures of bombed-out Libya and Iraq). But times have changed, and unless the US bribes its debt-holders with 3% interest rate or better—no deal.
How have times changed? There are two effects worth mentioning. First, the military annihilation threat isn’t working any more. Yes, the US still spends a stunning, record-shattering sum of 7 piffles on defense, but none of that is working. Call it the free money effect. When people spend their own hard-earned money, they tend to be careful with it, but if it’s somebody else’s money that they got for free never intending to pay it back, then they tend to throw caution to the wind. And so US military spending has become less and less effective over time, in one of two ways: procurement costs have gone through the roof, and the resulting products have become useless.
In terms of procurement costs, the purchasing parity between the US and (just as an example) Russia seems to be at least ten to one: to get the same result, the US has to spend at least ten times more than Russia. And so although Russia spends well less than 1 piffle on defense, its military is far more effective. In terms of product uselessness, the Pentagon now resembles a woman who has a closet jam-packed with expensive designer labels but has absolutely nothing to wear because her entire wardrobe is no longer fashionable. There is the entire set of aircraft carriers none of which can operate close enough to enemy shores to be of any use at all because they can be readily sunk using hypersonic rockets launched from very far away. There are the stockpiles of Tomahawk cruise missiles which can’t make it past Soviet-era air defense systems (with a few electronics and software upgrades). There are the Patriot air defense systems which are useless even for stopping Soviet-era SCUD missiles, never mind anything more modern.
Add to this Russia’s (and soon China’s) new hypersonic weapons with conventional payloads and new air and space defense systems such as the S-400: these provide what’s known as “escalation dominance.” Suppose the US does something unspeakably nasty and Russia and/or China decide to teach it a lesson. They now have the ability to blow up any target within the US without getting anywhere near it and without placing any of their military assets at risk.
They could, for instance, take out the US electric grid in a way that will take many months to get it back on line. They can then reliably intercept anything that the US tries to retaliate with. Of course, the US can become suicidal—that’s always a risk—and launch a full-on nuclear first strike, then sit back and wait to be completely obliterated along with much of the rest of the planet. But that’s not a military strategy, that’s pure suicide, and the officers in charge of military strategy tend to be emotionally stable family men who look forward to playing with their grandchildren upon retirement.
So, why then should the US continue to spend 7 piffles on defense? The sad answer is that it will go bankrupt whether it zeroes out the defense budget or not. If the defense budget goes to 0, then there is still 3 piffles’ worth of budget deficit left, plus those 6 piffles of trade deficit aren’t going anywhere but up. But what about MAGA?—you might ask—What about firing up US manufacturing, bringing the jobs back and exporting our way out of this? After all, if we turn those 6 piffles of trade deficit into 6 piffles of trade surplus, suddenly it all works out and bankruptcy becomes avoidable.
No, sorry, that just not realistic. You see, in order to get an industrial economy going again the US needs several things. It needs cheap energy, cheap labor, low cost of doing business and readily available markets, both domestic and export. And the US doesn’t have any of these. In terms of energy—and oil is by far the most important form of energy—in 2019 the US will import exactly as much oil as it did in 1998—around 8 million barrels a day. Yes, the shale oil industry has sprung up in the meantime, and the US is currently producing 11.5 million barrels per day. But also in the meantime US oil consumption has gone up a lot—to 20 million barrels a day, which is a stunning 20% of the world’s consumption for 4.4% of the world’s population.
And so the oil deficit is still very much there. Plus the shale oil patch has never made any money but has accumulated over 2 piffles’ worth of debt and has spent over a piffle’s worth more than it made. With interest rates going up they are unlikely to be able to borrow enough to keep up the same hectic drilling rate, and with declines from existing wells at over half a million barrels per day per month it won’t take many months to whittle down that 11.5 million barrels per day, forcing the US to either boost imports or cut consumption.
But the oil price has gone down a lot lately, so there shouldn’t be a problem in any case, right? Again, sorry, no. Peak Oil for most countries has come and gone. There is now only a handful of countries left that are able to meaningfully boost oil production: Russia, Canada (mostly tar sands), Iran, Iraq, United Arab Emirates, Kuwait and Brazil. Russia has recently announced that it isn’t planning to boost production. Saudi Arabia is a huge oil producer but does not seem to have any spare capacity left. Canada’s tar sands patch is a money-losing environmental disaster. Iran and Iraq (call them Iranq, since they are both Shia Moslem, are politically aligned and neither loves America too much) aren’t exactly going to gallop to the rescue. That leaves UAE, Kuwait and Brazil, and if you add them all up together that’s nowhere near enough. So, get ready for oil price spikes, followed by a wave of demand destruction, followed by oil price collapses, followed by supply destruction—you know, the usual.
Moving on to labor. In order to stay competitive, the US will need to lower its median wage a lot. It has to be lower than what the Chinese and the Southeast Asians earn because the US needs to outcompete them to steal their export market share. Without various other major changes this will cause US workers to either rebel or starve to death in short order. The changes involve nationalizing medicine and education to drive down their costs by a factor of 1000 or so, converting to public transportation and pretty much banning the use of private cars to make transportation affordable, putting up high-rises right next to factories for affordable worker housing and so on. That’s a lot of piffles’ worth of effort!
The cost of doing business is a tough one too. The US spends way more on courts and lawyers, insurance and regulatory compliance than most other countries, and the regulatory maze that entrepreneurs have to run in order to run even a small and simple business is very costly and absolutely confounding. How does one take a machete to that whole ridiculous, corrupt scheme? I have no idea. It’s an imponderable. The Chinese would probably just call it a “cultural revolution,” round up all the lawyers and the bureaucrats, make them wear dunce caps and sandwich boards that say “I am what is wrong with this country” and march them in procession while pelting them with rocks and beating them with sticks. Something like that…
Finally, there is the question of export markets. What exactly is the US going to export more effectively than other countries are exporting already? China out-manufactures just about anybody on the planet and isn’t about to give up its spot. Russia exports grain and other foodstuffs (all non-GMO, unlike the US), nuclear and space technology, defense technology (that actually works) and much else. Pakistan and India, and various other countries, export textiles. The world is full up with product. It’s consumers to bankrupt that are in short supply. And if the US cuts its labor rates to make itself competitive, then its consumer base will shrink rather dramatically.
So it looks like bankruptcy is it, no use fighting it. But what should the US do in the meantime? I suggest that it should put up some really huge walls—just for the sake of leaving behind some spectacular ruins for future generations to marvel at. The one along the southern border seems to be going up already, but there should be at least two more. There needs to be a wall along the Mason-Dixon line, because given the heated state of US politics there needs to be a way to prevent people from trying to reenact the Civil War (a misnomer, that!) with actual real weapons and live ammo. And there also needs to be a wall along the northern border, to keep various groups of armed troglodytes from escaping to Canada and ransacking it (it’s the least we can do for our peaceful northern neighbors). How much will these three walls cost? Glad you asked! They will cost roughly 0.005 piffles apiece, 0.015 piffles total—a truly piffling amount. That’s my 0.000000002 piffle’s worth. But, you know, it’s the thought that counts.
Oh, and if you want to actually design this National Bankruptcy board game, please resist the temptation to contact me about it. Seriously, I don’t like games, board games especially. I am a very serious person who doesn’t have time for such piffles.

By Mark Taliano
Source: GlobalResearch.ca
Myriad agencies, funded by Western governments, foundations, and NATO, continue to erect o barriers to freedoms of thought and expression in the West’s post-democratic, New Fascist, societies.
The totalitarianism implicit in these restrictions means that colonial media is monochromatic, tightly framed, and ubiquitous. There is no “free exchange” of ideas, a necessary foundation of democratic societies. Hence, messaging that promotes wars of aggression, and dysfunctional economic ideologies remains ascendant in the public sphere.
The public is led to believe that never-ending criminal wars and vast outflows of public monies to the military industrial complex are normal and necessary. Similarly, publicly bailed-out, predatory, diseconomies are presented as the only viable economic models. Socially-oriented, (democratic) political economies, we are told, “do not work”. The public remains unaware that Empire wages criminal economic and “kinetic”, terrorist-supporting warfare, against societies that seek to determine their own political economies. Socially-oriented political-economies in countries such as Libya, Iraq, Syria, Nicaragua, Venezuela and on and on, are constantly under attack, and not allowed to thrive. Empire targets these countries criminally, aggressively, and perpetually.
The covert barriers which create bounded, framed restrictions on freedoms of expression create a “chilling effect” that promotes self-censorship, and disappears evidence-based truths which would otherwise counter-balance narratives from media conglomerates, all of which are unduly impacted, and subservient to “establishment” pressures from Big Oil, Banking, Military Industrial Complex, Big Pharmaceutical, and other monopolies.
Thought leaders who step outside of the confines of Establishment narratives are targeted. The University of Sydney’s warrantless suspension of best-selling author and Senior lecturer, Prof. Tim Anderson[1], from his teaching duties, is a case in point. Not only does his suspension create a “chilling effect”, and a culture of academic self-censorship, but it also restricts the amount of evidence-based research that reaches the public arena.
Military/Intelligence fronts, such as the Integrity Initiative[2]– well-funded by state agencies and even NATO[3]– add to the oppression, not only by targeting individuals for smear campaigns, but also by guaranteeing a non-stop flow of war propaganda.
Time and again, policymakers use Private Intelligence Contractors (PICS) as sources of fake intelligence that they wrap around previously planned policies, to give an air of credibility to war propaganda. Have we forgotten already the lies used to justify the West’s supremely criminal destruction of Iraq? All of the post-9/11 wars (and beyond) were sold to gullible domestic populations by means of well-planned strategies of deception.
It is an unequal battle, but the broad-based public must first free itself from foundational war lies if we are to make transformative changes. Foremost amongst these lies is “The War On Terrorism”. The public needs to understand that this War on Terror myth is cover for criminal wars of conquest. Our governments and their agencies support the terrorists. Pretending that the West is fighting ISIS and other terrorists (i.e al Qaeda) prolongs the suffering of its victims, past, present, and future. It is not a war against ISIS. It never was. The West and its allies support all of the terrorists in Syria, (and beyond), including ISIS.
If the public can be disabused of the “War on Terrorism” myth, then it will be ready for mass social unrest and mobilizations for fundamental reforms. Incremental reforms only bolster Establishment positions by providing illusions of democratic policymaking.
For starters, Canada needs to leave NATO, cut its military budget, end its “neoliberal” diseconomy, instate a socially-oriented economy, and regain its sovereignty and democracy.
Given all of the structural barriers that we face, these goals may never be achieved, but we still “win” when we at least struggle for justice.
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Mark Taliano is a Research Associate of the Centre for Research on Globalization (CRG) and the author of Voices from Syria, Global Research Publishers, 2017.
Notes
[1] Prof. Tim Anderson, “STEPHEN GARTON’S OVERREACH: INTELLECTUAL FREEDOM AT THE UNIVERSITY OF SYDNEY.” Avant Garde, 12 December, 2018.( https://avantgarde2009.wordpress.com/2018/12/12/stephen-gartons-overreach-intellectual-freedom-at-the-university-of-sydney/?fbclid=IwAR1MpVAZX-F7LcuwbZvSzHAio1mN-L2BemweI7IVMuBrEGrjRjT-sRSRLpc) Accessed 19 December, 2018.
[2] Mohamed Elmaazi and Max Blumenthal, “Inside The Temple Of Covert Propaganda: The Integrity Initiative And The U.K’s Scandalous Information War.” Gray Zone,17 November, 2018. (https://grayzoneproject.com/2018/12/17/inside-the-temple-of-covert-propaganda-the-integrity-initiative-and-the-uks-scandalous-information-war/) Accessed 19 December, 2018.
[3] George Eliason, “A Crisis in Intelligence: Unthinkable Consequences of Outsourcing U.S. Intel. (Part 3)” Consortium News, 18 February, 2018.( https://consortiumnews.com/2018/02/18/a-crisis-in-intelligence-unthinkable-consequences-of-outsourcing-u-s-intel-part-3/?fbclid=IwAR2DKmAtaSMattb28apQZ-gCJ61stFYP3jem97t93PLm-bSpQLGp-0Z_4No) Accessed 18 February, 2018.
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