Category Archives: Corporate Crime

Where is Neo When We Need Him — Paul Craig Roberts

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By Paul Craig Roberts

Source: PaulCraigRoberts.org

In The Matrix in which Americans live, nothing is ever their fault. For example, the current decline in the US stock market is not because years of excessive liquidity supplied by the Federal Reserve have created a bubble so overblown that a mere six stocks, some of which have no earnings commiserate with their price, accounted for more than all of the gain in market capitalization in the S&P 500 prior to the current disruption.

In our Matrix existence, the stock market decline is not due to corporations using their profits, and even taking out loans, to repurchase their shares, thus creating an artificial demand for their equity shares.

The decline is not due to the latest monthly reporting of durable goods orders falling on a year-to-year basis for the sixth consecutive month.

The stock market decline is not due to a week economy in which after a decade of alleged economy recovery, new and existing home sales are still down by 63% and 23% from the peak in July 2005.

The stock market decline is not due to the collapse in real median family income and, thereby, consumer demand, resulting from two decades of offshoring middle class jobs and partially replacing them with minimum wage part-time Walmart jobs without benefits that do not provide sufficient income to form a household.

No, none of these facts can be blamed. The decline in the US stock market is the fault of China.

What did China do? China is accused of devaluing by a small amount its currency.

Why would a slight adjustment in the yuan’s exchange value to the dollar cause the US and European stock markets to decline?

It wouldn’t. But facts don’t matter to the presstitute media. They lie for a living.

Moreover, it was not a devaluation.

When China began the transition from communism to capitalism, China pegged its currency to the US dollar in order to demonstrate that its currency was as good as the world’s reserve currency. Over time China has allowed its currency to appreciate relative to the dollar. For example, in 2006 one US dollar was worth 8.1 Chinese yuan. Recently, prior to the alleged “devaluation” one US dollar was worth 6.1 or 6.2 yuan. After China’s adjustment to its floating peg, one US dollar is worth 6.4 yuan. Clearly, a change in the value of the yuan from 6.1 or 6.2 to the dollar to 6.4 to the dollar did not collapse the US and European stock markets.

Furthermore, the change in the range of the floating peg to the US dollar did not devalue China’s currency with regard to its non-US trading partners. What had happened, and what China corrected, is that as a result of the QE money printing policies currently underway by the Japanese and European central banks, the dollar appreciated against other currencies. As China’s yuan is pegged to the dollar, China’s currency appreciated with regard to its Asian and European trading partners. The appreciation of China’s currency (due to its peg to the US dollar) is not a good thing for Chinese exports during a time of struggling economies. China merely altered its peg to the dollar in order to eliminate the appreciation of its currency against its other trading partners.

Why did not the financial press tell us this? Is the Western financial press so incompetent that they do not know this? Yes.

Or is it simply that America itself cannot possibly be responsible for anything that goes wrong. That’s it. Who, us?! We are innocent! It was those damn Chinese!

Look, for example, at the hordes of refugees from America’s invasions and bombings of seven countries who are currently overrunning Europe. The huge inflows of peoples from America’s massive slaughter of populations in seven countries, enabled by the Europeans themselves, is causing political consternation in Europe and the revival of far-right political parties. Today, for example, neo-nazis shouted down German Chancellor Merkel, who tried to make a speech asking for compassion for refugees.

But, of course, Merkel herself is responsible for the refugee problem that is destabilizing Europe. Without Germany as Washington’s two-bit punk puppet state, a non-entity devoid of sovereignty, a non-country, a mere vassal, an outpost of the Empire, ruled from Washington, America could not be conducting the illegal wars that are producing the hordes of refugees that are over-taxing Europe’s ability to accept refugees and encouraging neo-nazi parties.

The corrupt European and American press present the refugee problem as if it has nothing whatsoever to do with America’s war crimes against seven countries. I mean, really, why should peoples flee countries when America is bringing them “freedom and democracy?”

Nowhere in the Western media other than a few alternative media websites is there an ounce of integrity. The Western media is a Ministry of Truth that operates full-time in support of the artificial existence that Westerners live inside The Matrix where Westerners exist without thought. Considering their inaptitude and inaction, Western peoples might as well not exist.

More is going to collapse on the brainwashed Western fools than mere stock values.

Hawaii Sees 10 Fold Increase in Birth Defects After Becoming GM Corn Testing Ground

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By Jay Syrmopoulos

Source: The Free Thought Project

Waimea, HI – Doctors are sounding the alarm after noticing a disturbing trend happening in Waimea, on the island of Kauai, Hawaii. Over the past five years, the number of severe heart malformations has risen to more than ten times the national rate, according to an analysis by local physicians.

Pediatrician Carla Nelson, after seeing four of these defects in three years, is extremely concerned with the severe health anomalies manifesting in the local population.

Nelson, as well as a number of other local doctors, find themselves at the center of a growing controversy about whether the substantial increase in severe illness and birth defects in Waimea stem from the main cash crop on four of the six islands, genetically modified corn, which has been altered to resist pesticide.

Hawaii has historically been used as a testing ground for almost all GMO corn grown in the United States. Over 90% of GMO corn grown in the mainland U.S. was first developed in Hawaii, with the island of Kauai having the largest area used.

According to a report in The Guardian:

In Kauai, chemical companies Dow, BASF, Syngenta and DuPont spray 17 times more pesticide per acre (mostly herbicides, along with insecticides and fungicides) than on ordinary cornfields in the US mainland, according to the most detailed study of the sector, by the Center for Food Safety.

That’s because they are precisely testing the strain’s resistance to herbicides that kill other plants. About a fourth of the total are called Restricted Use Pesticides because of their harmfulness. Just in Kauai, 18 tons – mostly atrazine, paraquat (both banned in Europe) and chlorpyrifos – were applied in 2012. The World Health Organization this year announced that glyphosate, sold as Roundup, the most common of the non-restricted herbicides, is “probably carcinogenic in humans”.

Waimea is a small town that lies directly downhill from the 12,000 acres of GMO test fields leased mainly from the state. Spraying takes place often, sometimes every couple of days. Residents have complained that when the wind blows downhill from the fields, the chemicals have caused headaches, vomiting, and stinging eyes.

“Your eyes and lungs hurt, you feel dizzy and nauseous. It’s awful,” local middle school special education teacher Howard Hurst told the Guardian. “Here, 10% of the students get special-ed services, but the state average is 6.3%,” he says. “It’s hard to think the pesticides don’t play a role.”

To add insult to injury, Dow AgraSciences’ main lobbyist in Honolulu, until recently, actually ran the main hospital in town. Although only 1,700ft away from a Syngenta field, the hospital has never done any research into the effects of pesticides on its patients.

Hawaiians have attempted to reign in the industrial chemical/farming machine on four separate occasions over the past two years. On August 9 an estimated 10,000 people marched through Honolulu’s main tourist district to protest the collusion of big business and state putting profits over citizens’ health.

“The turnout and the number of groups marching showed how many people are very frustrated with the situation,” native Hawaiian activist Walter Ritte said.

Hawaiians have also attempted to use a ballot initiative to force a moratorium on the planting of GMO crops, according to The Guardian:

In Maui County, which includes the islands of Maui and Molokai, both with large GMO corn fields, a group of residents calling themselves the Shaka Movement sidestepped the company-friendly council and launched a ballot initiative that called for a moratorium on all GMO farming until a full environmental impact statement is completed there.

The companies, primarily Monsanto, spent $7.2m on the campaign ($327.95 per “no” vote, reported to be the most expensive political campaign in Hawaii history) and still lost.

Again, they sued in federal court, and, a judge found that the Maui County initiative was preempted by federal law. Those rulings are also being appealed.

Even amidst strong public pressure, the chemical companies that grow the GMO corn have continued to refuse to disclose the chemicals they are using, as well as the specific amounts of each chemical being used. The industry and its political cronies have continually insisted that pesticides are safe.

“We have not seen any credible source of statistical health information to support the claims,” said Bennette Misalucha, executive director of Hawaii Crop Improvement Association in a written statement distributed by a publicist.

Nelson pointed out that American Academy of Pediatrics’ report, Pesticide Exposure in Children, found “an association between pesticides and adverse birth outcomes, including physical birth defects,” going on to note that local schools have twice been evacuated and kids sent to the hospital due to pesticide drift. “It’s hard to treat a child when you don’t know which chemical he’s been exposed to.”

Sidney Johnson, a pediatric surgeon at the Kapiolani Medical Center for Women and Children who oversees all children born in Hawaii with major birth defects says he’s noticed that the number of babies born here with their abdominal organs outside. This is a rare condition known as gastroschisis and has grown from three a year in the 1980s to about a dozen now, according to The Guardian.

Johnson and a team of medical students have been studying hospital records to determine if any of the parents of the infants with gastroschisis were residing near fields that were undergoing spraying during conception and early pregnancy.

“We have cleanest water and air in the world,” Johnson said. “You kind of wonder why this wasn’t done before,” he says. “Data from other states show there might be a link, and Hawaii might be the best place to prove it.”

It was recently revealed that these chemical companies, unlike farmers, are allowed to operate under an antiquated decades-old Environmental Protection Agency permit. This permit was grandfathered in from the days of sugar plantations when the amounts and toxicities were significantly lower, and which allowed for toxic chemicals to be discharged into water. Tellingly the state of Hawaii has asked for a federal exemption to allow these companies to continue to not comply with modern standards.

The ominous reality of collusion between these mega-corporations and the political class in Hawaii has seemingly left the citizens of the state with virtually no ability to safeguard their children’s health. We tread dangerously close to corporate fascism when profits are put above the health of the people.

Jay Syrmopoulos is an investigative journalist, free thinker, researcher, and ardent opponent of authoritarianism. He is currently a graduate student at University of Denver pursuing a masters in Global Affairs. Jay’s work has been published on BenSwann’s Truth in Media, Chris Hedges’s Truth-Out, AlterNet, InfoWars, MintPress News and many other sites. You can follow him on Twitter @sirmetropolis, on Facebook at Sir Metropolis and now on tsu.

Systemic Corruption Has Destroyed America

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Source: Washington’s Blog

Preface: There’s always been some corruption in the United States … but it’s never been this bad before.

The Cop Is On the Take

Government corruption has become rampant:

  • Senior SEC employees spent up to 8 hours a day surfing porn sites instead of cracking down on financial crimes
  • NSA spies pass around homemade sexual videos and pictures they’ve collected from spying on the American people
  • Investigators from the Treasury’s Office of the Inspector General found that some of the regulator’s employees surfed erotic websites, hired prostitutes and accepted gifts from bank executives … instead of actually working to help the economy
  • The Minerals Management Service – the regulator charged with overseeing BP and other oil companies to ensure that oil spills don’t occur – was riddled with “a culture of substance abuse and promiscuity”, which included “sex with industry contacts”
  • Agents for the Drug Enforcement Agency had dozens of sex parties with prostitutes hired by the drug cartels they were supposed to stop (they also received money, gifts and weapons from drug cartel members)
  • The former chief accountant for the SEC says that Bernanke and Paulson broke the law and should be prosecuted
  • The government knew about mortgage fraud a long time ago. For example, the FBI warned of an “epidemic” of mortgage fraud in 2004. However, the FBI, DOJ and other government agencies then stood down and did nothing. See this and this. For example, the Federal Reserve turned its cheek and allowed massive fraud, and the SEC has repeatedly ignored accounting fraud (a whistleblower also “gift-wrapped and delivered” the Madoff scandal to the SEC, but they refused to take action). Indeed, Alan Greenspan took the position that fraud could never happen
  • Paulson and Bernanke falsely stated that the big banks receiving Tarp money were healthy, when they were not. The Treasury Secretary also falsely told Congress that the bailouts would be used to dispose of toxic assets … but then used the money for something else entirely
  • Congress has exempted itself from the healthcare rules it insists everyone else follow
  • Law enforcement also grabs massive amounts of people’s cash, cars and property … even when people aren’t CHARGED with – let alone convicted of – any crime
  • Private prisons are huge profit-making centers for giant companies, and private prison corporations obtain quotas from the government, where the government guarantees a certain number of prisoners at any given time
  • The government covered up the health risks to New Orleans residents associated with polluted water from hurricane Katrina, and FEMA covered up the cancer risk from the toxic trailers which it provided to refugees of the hurricane.  The Centers for Disease Control – the lead agency tasked with addressing disease in America – covered up lead poisoning in children in the Washington, D.C. area (the Centers for Disease Control has also been outed as receiving industry funding)
  • In response to new studies showing the substantial dangers of genetically modified foods, the government passed legislation more or less PUSHING IT onto our plates
  • The Bush White House worked hard to smear CIA officers, bloggers and anyone else who criticized the Iraq war
  • The FBI smeared top scientists who pointed out the numerous holes in its anthrax case. Indeed, the head of the FBI’s investigation agrees that corruption was rampant
  • The government has intentionally whipped up hysteria about terrorism for cynical political purposes.  For example, former Secretary of Homeland Security Tom Ridge admitted that he was pressured to raise terror alerts to help the president win reelection
  • When the American government got caught assassinating innocent civilians, it changed its definition of “enemy combatants” to include all young men – between the ages of say 15 and 35 – who happen to be in battle zones. When it got busted killing kids with drones, it changed the definition again to include kids as “enemy combatants”
  • The government treats journalists who report on government corruption as CRIMINALS OR TERRORISTS.  And it goes to great lengths to smear them. For example, when USA Today reporters busted the Pentagon for illegally targeting Americans with propaganda, the Pentagon launched a SMEAR CAMPAIGN against the reporters

The biggest companies own the D.C. politicians. Indeed, the head of the economics department at George Mason University has pointed out that it is unfair to call politicians “prostitutes”. They are in fact pimps … selling out the American people for a price.

Government regulators have become so corrupted and “captured” by those they regulate that Americans know that the cop is on the take. Institutional corruption is killing people’s trust in our government and our institutions.

Neither the Democratic or Republican parties represent the interests of the American people.  Elections have become nothing but scripted beauty contests, with both parties ignoring the desires of their own bases.

Indeed, America is no longer a democracy or republic … it’s officially an oligarchy. And the allowance of unlimited campaign spending allows the oligarchs to purchase politicians more directly than ever.

No wonder polls show that the American people say that the system is thoroughly corrupt.

Moreover, there are two systems of justice in America … one for the big banks and other fatcats … and one for everyone else. Indeed, Americans have .

Big Corporations Are Also Thoroughly Corrupt

But the private sector is no better … for example, the big banks have literally turned into criminal syndicates engaged in systemic fraud.

Wall Street and giant corporations are literally manipulating every single market.

And the big corporations are cutting corners to make an extra penny … wreaking havoc with their carelessness. For example:

  • U.S. military contractors have pocketed huge sums of money earmarked for humanitarian and reconstruction aid. And see this (whistleblowers alerted the government about the looting of Iraq reconstruction funds, but nothing was done)
  • There is systemic corruption among drug companies, scientific journals, university medical departments, and medical groups which set the criteria for diagnosis and treatment

(Further examples here, here, here, here and here.)

We’ve Forgotten the Lessons of History

The real problem is that we need to learn a little history:

  • We’ve known for thousands of years that – when criminals are not punished – crime spreads
  • We’ve known for centuries that powerful people – unless held to account – will get together and steal from everyone else

Beyond Partisan Politics

Liberals and conservatives tend to blame our country’s problems on different factors … but they are all connected.

The real problem is the malignant, symbiotic relationship between big corporations and big government.

 

Wall Street Panic

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By Mike Whitney

Source: Counterpunch

“Not only is the equity market at the second most overvalued point in U.S. history, it is also more leveraged against probable long-term corporate cash flows than at any previous point in history.”

— John P. Hussman, Ph.D. “Debt-Financed Buybacks Have Quietly Placed Investors On Margin“, Hussman Funds

“This year feels like the last days of Pompeii: everyone is wondering when the volcano will erupt.”

— Senior banker commenting to the Financial Times

Last Friday’s stock market bloodbath was the worst one-day crash since 2008. The Dow Jones dropped 531 points, while the S&P 500 fell 64, and the tech-heavy Nasdaq slid 171. The Dow lost more than 1,000 points on the week dipping back into the red for the year. At the same time, commodities continued to get hammered with oil prices briefly dropping below the critical $40 per barrel mark. More tellingly, the market’s so called “fear gauge” (VIX) skyrocketed to a 2015 high indicating more volatility to come.  The VIX has remained at unusually low levels for a number of years as investors have grown more complacent figuring the Fed will intervene whenever stocks fall too far. But last week’s massacre cast doubts on  the Central Bank’s intentions. Will the Fed ride to the rescue again or not? To the vast majority of institutional investors, who now base their buying decisions on Fed policy rather than market fundamentals, that is the crucial question.

Ostensibly, last week’s selloff  was triggered by China’s unexpected decision to devalue its currency, the juan.   The announcement confirmed that the world’s second biggest economy is rapidly cooling off increasing the likelihood of a global slowdown. Over the last decade, China has accounted  “for a third of the expansion in the global economy,… almost double the contribution of the US and more than triple the impacts of Europe and Japan.” Fears of a slowdown were greatly intensified on Friday when a survey showed that manufacturing in China shrank at the fastest pace since the recession in 2009. That’s all it took to put the global markets into a nosedive. According to the World Socialist Web Site:

“The deceleration of growth in China, reflected in figures on production, exports and imports, business investment and producer prices, is fueling a near-collapse in so-called “emerging market” economies that depend on the Chinese market for exports of raw materials. The past week saw a further plunge in stock prices and currency rates in Russia, Turkey, Brazil, South Africa and other countries. These economies are being hit by a massive outflow of capital, placing in doubt their ability to meet debt obligations.”

(“Panic sell-off on world financial markets”, World Socialist Web Site)

While a correction was not entirely unexpected following a 6-year long bull market, the sudden drop in equities does have analysts rethinking the effectiveness of the Fed’s monetary policies which have had little impact on personal consumption, retail spending, wages, productivity, household income, or economic growth all of which remain weaker than they have been following any recession in the post war era.  For all intents and purposes, the plan to inflate asset prices by dropping rates to zero and injecting trillions in liquidity into the financial system has been an abject failure.   GDP continues to hover at an abysmal 1.5% while  signs of a strong, self sustaining recovery are nowhere to be seen. At the same time, government and corporate debt continue to balloon at a near-record pace draining capital  away from productive investments that could lay the groundwork for higher employment and stronger growth.

What’s so odd about last week’s market action is that the bad news on China put shares into a tailspin instead of sending them into the stratosphere which has been the pattern for the last four years. In fact, the reason volatility has stayed so low and investors have grown so complacent is because every announcement of bad economic data has been followed by cheery promises from the Fed to keep the easy-money sluicegates open until the storm passes.  That hasn’t been the case this time, in fact, Fed chair Janet Yellen hasn’t even scrapped the idea of jacking up rates some time in September which is almost unthinkable given last week’s market ructions.

Why? What’s changed?   Surely, Yellen isn’t going to sit back and let six years of stock market gains be wiped out in a few sessions, is she?  Or is there something we’re missing here that is beyond the Fed’s powers to change? Is that it?

My own feeling is that China is not the real issue. Yes, it is the catalyst for the selloff, but the real problem is in the credit markets where the spreads on high yield bonds continue to widen relative to US Treasuries.

What does that mean?

It means the price of capital is going up, and when the price of capital goes up, it costs more for businesses to borrow. And when it costs more for businesses to borrow, they reduce their borrowing, which decreases the demand for credit. And when the demand for credit decreases in a credit-based system, then there’s a corresponding slowdown in business investment which impacts stock prices and growth. And that is particularly significant now, since the bulk of corporate investment is being diverted into stock buybacks. Check out this excerpt from a post at Wall Street on Parade:

“According to data from Bloomberg, corporations have issued a stunning $9.3 trillion in bonds since the beginning of 2009. The major beneficiary of this debt binge has been the stock market rather than investment in modernizing the plant, equipment or new hires to make the company more competitive for the future. Bond proceeds frequently ended up buying back shares or boosting dividends, thus elevating the stock market on the back of heavier debt levels on corporate balance sheets.

Now, with commodity prices resuming their plunge and currency wars spreading, concerns of financial contagion are back in the markets and spreads on corporate bonds versus safer, more liquid instruments like U.S. Treasury notes, are widening in a fashion similar to the warning signs heading into the 2008 crash. The $2.2 trillion junk bond market (high-yield) as well as the investment grade market have seen spreads widen as outflows from Exchange Traded Funds (ETFs) and bond funds pick up steam.” (“Keep Your Eye on Junk Bonds: They’re Starting to Behave Like ‘08 “, Wall Street on Parade)

As you can see, the nation’s corporations don’t borrow at zero rates from the Fed. They borrow at market rates in the bond market, and those rates are gradually inching up. And while that hasn’t slowed the stock buyback craze so far,  the clock is quickly running out. We are fast approaching the point where debt servicing, shrinking revenues, too much leverage, and higher rates will no longer make stock repurchases a sensible option, at which point stocks are going to fall off a cliff. Here’s more from Andrew Ross Sorkin at the New York Times:

“Since 2004, companies have spent nearly $7 trillion purchasing their own stock — often at inflated prices, according to data from Mustafa Erdem Sakinc of the Academic-Industry Research Network. That amounts to about 54 percent of all profits from Standard & Poor’s 500-stock index companies between 2003 and 2012, according to William Lazonick, a professor of economics at the University of Massachusetts Lowell.”

You can see the game that’s being played here. Mom and Pop investors are getting fleeced again. They’ve been lending trillions of dollars to corporate CEOs (via bond purchases) who’ve taken the money, split it up among themselves and their wealthy shareholder buddies, (through buybacks and dividends neither of which add a thing to a company’s productive capacity) and made out like bandits.  This, in essence, is how stock buybacks work. Ordinary working people stick their life savings into bonds (because they were told “Stocks are risky, but bonds are safe”.) that offer a slightly better return than ultra-safe, low-yield government debt (US Treasuries) and, in doing so, provide lavish rewards for scheming executives who use it to shower themselves and their cutthroat shareholders with windfall profits that will never be repaid. When analysts talk about “liquidity issues” in the bond market, what they really mean is that they’ve already divvied up the money between themselves and you’ll be lucky if you ever see a dime of it back. Sound familiar?

Of course, it does. The same thing happened before the Crash of ’08. Now we are reaching the end of the credit cycle which could produce the same result. According to one analyst:

“There’s been worrying deterioration in the overall global demand picture with the continuation of EM (Emerging Markets) FX (Currency Markets) onslaught, deterioration in credit metrics with rising leverage in the US as well as outflows in credit funds in conjunction with significant widening in credit spreads…..The goldilocks period of “low rates volatility-stable carry trade environment of the last couple of years is likely coming to an end.”

(“Credit: Magical Thinking“, Macronomics)

In other words, the good times are behind us while hard times are just ahead. And while the end of the credit cycle doesn’t always signal a stock market crash, the massive buildup of leverage in unproductive financial assets like buybacks suggest that equities are in line for a serious whooping. Here’s more from Bloomberg:

“Credit traders have an uncanny knack for sounding alarm bells well before stocks realize there’s a problem. This time may be no different. Investors yanked $1.1 billion from U.S. investment-grade bond funds last week, the biggest withdrawal since 2013, according to data compiled by Wells Fargo & Co…..

“Credit is the warning signal that everyone’s been looking for,” said Jim Bianco, founder of Bianco Research LLC in Chicago. “That is something that’s been a very good leading indicator for the past 15 years.”

Bond buyers are less interested in piling into notes that yield a historically low 3.4 percent at a time when companies are increasingly using the proceeds for acquisitions, share buybacks and dividend payments. Also, the Federal Reserve is moving to raise interest rates for the first time since 2006, possibly as soon as next month, ending an era of unprecedented easy-money policies that have suppressed borrowing costs….

“Unlike the credit market, the equity market well into 2008 was very complacent about the subprime crisis that led to a full blown financial crisis,” the analysts wrote…..

So if you’re very excited about buying stocks right now, just beware of the credit traders out there who are sending some pretty big warning signs.”  (“U.S. Credit Traders Send Warning Signal to Rest of World Markets”, Bloomberg)

It’s worth noting that the above article was written on August 14, a week before the stock market blew up. But credit was “flashing red” long before stock traders ever took notice.

But that’s beside the point. Whether the troubles started with China or the credit markets, probably doesn’t matter. What matters is that the system about to be put-to-the-test once again because the appropriate safeguards haven’t been put in place, because bubbles are unwinding, and because the policymakers who were supposed to monitor and regulate the system decided that they were more interested in shifting  wealth to their voracious colleagues on Wall Street than building a strong foundation for a healthy economy. That’s why a simple correction could turn into something much worse.

NOTE: As of posting time, Sunday night, the Nikkei Index is down 710, Shanghai down 296, HSI down 1,031. US equity futures are all deep in the red

MIKE WHITNEY lives in Washington state. He is a contributor to Hopeless: Barack Obama and the Politics of Illusion (AK Press). Hopeless is also available in a Kindle edition. He can be reached at fergiewhitney@msn.com.

The Asshole Factory

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Our economy doesn’t make stuff anymore. So what does it make?

By Umair Haque

Source: Medium

My good friend Mara has not one but two graduate degrees. From fine, storied universities. Surprise, surprise: the only “job” she was able to find was at a retail store.

Hey—it’s only minimum wage, but at least she’s working, right? And at a major-league, blue-chip company, An American icon; an institution; a name every man, woman, and child in this country knows; an historic company that rings of the American Dream the world over, besides. Surely, if nothing else, it’s a start.

Perhaps you’re right. Maybe it isn’t the start she always dreamed of…but at least it is one. If so…then awaits her at the finish?

What is Mara’s job like? Her sales figures are monitored…by the microsecond. By hidden cameras and mics. They listen to her every word; they capture her every movement; that track and stalk her as if she were an animal; or a prisoner; or both. She’s jacked into a headset that literally barks algorithmic, programmed “orders” at her, parroting her own “performance” back to her, telling her how she compares with quotas calculated…down to the second…for all the hundreds of items in the store…which recites “influence and manipulation techniques” to her…to use on unsuspecting customers…that sound suspiciously like psychological warfare. It’s as if the NSA was following you around……and it was stuck in your head…telling you what an inadequate failure you were…psychologically waterboarding you…all day long…every day for the rest of your life.

Mara’s boss sits in the back. Monitoring all twelve, or fifteen, or twenty people that work in the store. On a set of screens. Half camera displays, half spreadsheets; numbers blinking in real-time. Glued to it like a zombie. Chewing slowly with her mouth open. Jacked into a headset. A drone-pilot… piloting a fleet of human drones…pressure-selling disposable mass-made shit…as if it were luxury yachts…through robo-programmed info-warfare…like zombies…to other zombies…who look stunned…like they just got laser blasted, cluster-bombed, shock-and-awed…

WTF?

It’s bananas. The whole scene is like a maximum-security mental asylum designed by sadomasochists in a sci-fi movie. If Jeffrey Dahmer, Rasputin, and Michael Bay designed a “store” together, they couldn’t do any better. Her “job” will begin to drive her crazy—paranoid, depressed, deluded—in a matter of years if she continues doing it. No human psyche can bear that kind of relentless, systematic abuse.

Now. Note what all the technology and bureaucracy that wonderful, noble company has invested hundreds of millions in doesn’t ask her to do. Learn. Think. Reflect. Teach. Inspire. Lead. Connect. Imagine. Create. Grow. Dream. Actually…serve customers. Heaven forbid. It just beats her over the head, over and over again, three times a minute, every twenty seconds, with how much she hasn’t sold; hasn’t made; hasn’t produced. For her shitty .0003% commission. According to the quota that’s been set for her. By her boss. For his boss. For their boss. And so on all the way up the food chain.

See my point? Mara’s job isn’t to benefit customers. It isn’t to educate, understand, listen to, or even to chat with them. It isn’t to stop them from buying what they don’t want; to help them find what they might need; to match them with the right stuff. Nope. It’s merely to push more and more and more and more shit at them…faster, meaner, and dumber than any sane person would think is humanly possible…using advanced military technology and techniques… programmed to abuse her…so she can wage advanced psychological warfare…on her customers. And they were just suckers, gaping maws, fools, marks. And be yelled at…by a robot…if she doesn’t.

Really? This is the best our economy can do? To take the stuff of 21st century warfare and use them them to…rack up the profit? To turn a bright young woman with two grad degrees…into a Superprofitable Human Weapon of Mass Consumption…a half-crazed algorithmically-programmed asshole…a human drone…so even bigger, actually crazy assholes…can get super-rich…by slinging entire supertankers full of junk…at people getting poorer at four thousand percent interest a year…by using drones and bots to wage psy-warfare against them…so they’re conned into buying too much?

The economy doesn’t make stuff anymore. That much you know. So what does it make?

It makes assholes.

The Great Enterprise of this age is the Asshole Industry.

And that’s not just a tragedy. It is something approaching the moral equivalent of a crime. For it demolishes human potential in precisely the same way as locking someone innocent up, and throwing away the key.

Consider Mara again. Who in Christ’s name would design such an inhuman system? Whose sick joke of an idea is a “store” like that? What do you even call it? Because it’s surely not a “store”.

Only a monstrous asshole of the highest order could assemble such a demonically vampiric bullshit machine to prey on…everyone. Customers, managers, workers alike. Such a carefully sophisticated engine of human misery; of finessed cruelty; all to rake in a few extra pennies an hour, at the expense of dignity, intelligence, creativity, commitment, fairness, craft, service, sovereignty…sanity.

The store is an Asshole Factory.

Allow me to explain.

What happens to Mara when she’s “doing her job”? Think about it for a second. She turns into precisely the kind of asshole that the heartless dweebs who thought up this infernal torture-machine no doubt already are. Not because she wants to. But because she has to.

That’s exactly what the store was designed to do. Turn everyone into the same kind of asshole as the assholes that made it, run it, and benefit from it…want everyone to be.

The store is an Asshole Factory.

Our world is now full of Asshole Factories. That’s what the stores, offices, industrial parks, skyscrapers, malls, low-rise blocks, gleaming headquarters, whimsically designed corporate campuses, really are.

It’s the grand endeavor of today. We don’t make stuff anymore. We make assholes. The Great Enterprise of this age is the Asshole Industry.

Consider, for a moment, my tiny hypothesis.

Have you noticed, lately, that people seem to be more, well, assholish…than before? That everywhere you go, people seem to be meaner, nastier, dumber, angrier, more brutish?

Why?

It is the last and greatest industry left in an economy that has been impoverished, emptied, hollowed out, drained.

The Great Enterprise of the Age of Stagnation is the wholesale manufacture not of great, world-shaking, ground-breaking ideas, inventions, concerns…but of bigger and bigger assholes.

The chain-store; the mall; the hypermarket. The corporation; the firm; the partnership. B-school; law school; med school. The boardroom; the backroom; the trading floor.

These are, by and large, Asshole Factories. They don’t make people. Capable of great things. Who create and build and touch and soar. They make assholes.

They are designed to disinfect us of our fragility. To cleanse us of our flaws. To disinfect us of weakness. Love, grace, mercy, longing, forgiveness, passion, truth, nobility, dreams. Their objective is to stamp all that out; to eradicate it; to erase it. To replace it with calculation, ruthlessness, self-concern; gluttony; cruelty; anxiety, despair. By using the most sophisticated technology ever made to subjugate, oppress, and goad us into being little torturers ourselves.

And in so doing, they emotionally sterilize us. They psychically traumatize us. They intellectually castrate us. They socially neuter us. They cheat us of greatness. That is how they turn us into assholes.

They are designed to deprive us into depriving everyone else of the lives we could and have, at our highest and truest and noblest.

The assholes haven’t just taken our incomes, our savings, our careers, our educations. They’ve taken something far more precious; something priceless. It is our lives—the full, true lives we should be living—that have been taken from us. And in the gaping void where the lives we should be living are, the assholes have deftly inserted carbon copies of…themselves.

When you think about it that way…is it any wonder that society seems to be stuck? That the economy seems headed into oblivion? That life for so pretty much anyone under the age of 35 and/or worth less than $20 million or so appears to be going…nowhere?

Remember my friend Mara? She’s probably being piloted like a drone…yelled at by a bot…three times a minute…into waging advanced techniques of psycho-war…designed to traumatize prisoners…over and over and over again…right this very second…

Until she’s cleansed. Perfect. Flawless. Pure. Another gleaming, brand-new asshole, rolling proudly off the assembly line of the Asshole Factory.

We’re obedient constructivists. Pragmatists. Rationalists. So you probably want to know: what can we do about it?

It’s pretty simple.

Don’t be an asshole. Remember the Asshole Factories? Here’s a secret: they’re churning out assholes by the millions. And so should you bravely decide to be an asshole, what you’ll really be is just another interchangeable, forgettable, rapidly depreciating commodity.

So who should you be?

Be yourself. The person you were meant to be. Whether you believe in heaven or the inferno, freedom or fate, the simple fact is: each and every one of us was put here to be something greater than Just Another Asshole stealing pennies from his neighbors to pay off Even Bigger Assholes.

So let me say it again. Don’t be an asshole. Be yourself. The miracle of being that you were meant to be. A person that, consumed with passion, seared with happiness, aglow with meaning, brings forth all that is great, noble, and true in the world, and so, with love, mercy, and wisdom, lifts every life that you meet into the light.

Thank you and goodbye.

Our Spoiled-Brat Economy

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By Charles Hugh Smith

Source: Of Two Minds

By insuring spoiled brats/vested interests never face the consequences of their actions and choices, we guarantee failure of the entire system.

Spoiled brats do not take kindly to being called out as spoiled brats. Since economies are aggregates of individuals, we can anticipate howls of outraged denial at our economy being identified as spoiled rotten.

 

The two essential characteristics of spoiled brats are 1) a complete disregard for the burdens of those paying the bills and 2) a childishly self-absorbed sense of overweening entitlement. Spoiled brats have no sense of fiscal discipline. Indeed, it is their defining characteristic. They want what they want, and they want it now, regardless of the cost to others or the system as a whole.

In America’s Spoiled Brat Economy, no vested interest is ever allowed to fail. Lost billions gambling with borrowed money? Just throw a K Street temper tantrum and threaten to close all the ATMs when you go broke, and voila, Mommy and Daddy (the federal government and Federal Reserve) come rushing with trillions of dollars to make all the bad things like well-deserved bankruptcy go away.

That tens of millions of savers must be robbed of hundreds of billions of dollars in lost interest to rebuild your banks’ profits and balance sheets–the sacrifices of others are of no concern to spoiled brats.

What does not allowed to fail bring to mind? How about coddled children who are crippled by helicopter parents who do their homework for them and schools that give everybody passing grades and gold stars?

A system that doesn’t allow individuals and enterprises to fail is a system that is simply taking another path to failure. Students who are given gold stars and 9th place ribbons (Meet the Fockers) cannot possibly establish a real sense of accomplishment or learn how to make a realistic assessment of their deficiencies or strengths. They are crippled by all the “help” enablers press on them.

The same is true of spoiled-brat economies. Enterprises that are never allowed to fail (for example, too big to fail banks, bankrupt cities, counties and states, defense contractors who produce failed weapons systems, healthcare organizations that cheat the government and patients, etc. etc. etc.) become deadwood that saps the vitality of the economy, dragging down the few productive sectors.

The “help” lavished on vested interests include sweetheart contracts, direct subsidies, tax credits, lines of credit, zero interest rates and a vast range of other subsidies. The entire point of the vast lobbying machine that funnels federal and Federal Reserve largesse to vested interests is about staving off the very failure that keeps economies from imploding (creative destruction).

The Yellowstone Analogy and The Crisis of Neoliberal Capitalism (May 18, 2009)

Innovation, Risk and the Forest Fire Analogy (July 2, 2010)

By insuring spoiled brats/vested interests never face the consequences of their actions, choices and self-absorbed greed, we guarantee failure of the entire system. So by all means, keep passing out subsidies to too big to fail banks and 9th-place ribbons, and give the brats whatever they want as soon as they start wailing, regardless of the cost to the system itself.

 

Closing the Doors of Perception

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By Dylan Charles

Source: Waking Times

“If the doors of perception were cleansed every thing would appear to man as it is, Infinite. For man has closed himself up, till he sees all things thro’ narrow chinks of his cavern.”  -William Blake, The Marriage of Heaven and Hell

We, the people, are the foundation of a vast human pyramid, at the top of which comfortably rests a world elite that manipulates the human population and world events to broaden and maintain their power. The main agents of this global cartel are the banking elite, the military industrial complex, the medical establishment, the mainstream media, the entertainment industrial complex, and the hundreds of corrupt and co-opted world governments that act as henchmen and watchdogs for the unelected world rulers.

Over our heads they hang the constant specter of war, financial collapse, terrorism and pandemic disease, and to keep us from reacting to their deeds they enlist evermore advanced forms of mind control, biological control and social engineering.

The key to their dominance over the human race is the management of public perception, and how the public mind, in turn, affects the individual mind. Reality for us is very narrowly defined, which magnifies the perception of division between human beings, between humans and nature, and between individuals and their own true spiritual nature. As such we are all too easily sidelined or conquered altogether, and doomed to toil as relatively well-off slaves in their matrix of control, constantly struggling with and murdering each other.

They recruit us to enforce this prison of the mind on ourselves, and are creating a rising class of those who willingly support them in their efforts. The rest of us are merely subjects of their tyranny, whether we acknowledge it or not, and until a major cultural upheaval occurs, there is little chance of liberating the human race. Thus we must for now focus on liberating the individual and freeing human consciousness.

This realization is a powerful motivator, for it challenges all life-loving, courageous and compassionate people to hastily wake up, discover who we really are as spiritual beings having a human experience, and then become the best possible version of ourselves so that we me may contribute to the awakening and help to cast light on that which thrives in shadows.

“Sometimes I think this whole wide world is one big prison yard. Some of us are prisoners, the rest  of us are guards.” – Bob Dylan

Slamming the Doors

To gain administrative access to our consciousness and constrict our perception to such a narrow band, our vibration is kept humming along chaotically in the lowest possible frequencies of fear, panic, anger, blame, hate, uncertainty and limitation. To parry this onslaught, it is essential that we recognize the many negative influences that invade our minds, bodies and spirits, and fortify ourselves against the shallowness and negativity being marketed to us at every corner.

The mind is the agent of the spirit, and the body is the vehicle of the mind. By attacking first the body, the mind and spirit are thus duly compromised.

We are under continual barrage from industrial environmental pollution, toxic pesticide-laden and overly processed foods, DNA altering genetically modified organisms and vaccines, chemtrails, radiation, EMF’s, pharmaceuticals and so much more. The body’s immune systems are quite capable, but the deliberate trashing of our environment, food supply and health is one of the foremost challenges we must overcome in order to be able to move beyond the limitations imposed upon us. A full rejection of these pollutants (as best as is possible) is warranted in order to detoxify the body, decalcify the pineal gland and prepare the body to support the mind and spirit in its natural evolution of consciousness.

Stress is the weapon of choice for the elite, and the stress of living sedentary, material-driven, worker-bee lifestyles in pursuit of manipulated currencies keeps us focused completely on our personal interests and affairs, and always in competition with our neighbors, peers, friends and family. When our mind and spirit falter and our mental health suffers, we are herded to the clinics for mass-produced psychiatric evaluations that aim to hook us on psychotropic medications which numb us to life’s beauty and keep us entranced in the day-to-day work of supporting the economy with our time and energy.

Human imagination is crushed as today’s children are hammered with rigidity and mind-numbing repetition from an early age, and with the introduction of Common Core, our education system has become even more intolerant, close-minded and non-sensical. This system produces conformists who are good at following directions and working hard for material and superficial rewards. The ability to think clearly, focus, and imagine new possibilities are absolutely critical to understanding who you are, and to understanding your inherent power and flexibility as a human being.

The law and those who enforce it are there to add to the stress and confusion of living in the matrix, and the law is used overtly to cut us from organic and chemical substances which have the potential to help us quickly see through the grand illusion that is crafted for us. Human consciousness, however, naturally pushes to thrive, grow and expand, and as such it has triggered a wave of interest in the spiritual gifts of iboga, ayahuasca, psilocybin and shamanic medicine traditions. We have open access to alcohol, pharmaceuticals and are deliberately over-exposed to other consciousness debilitating substances like aspartame, fluoride, and high-fructose corn syrup, and there is an abundance in availability of parasitic street drugs like cocaine, heroin and meth-amphetamines.

Government plays the roles of spy, censor and thought police, thus robbing the psyche of the freedom of the exploration of thought. Religion seeks to homogenize spiritual experience and externalize divinity. The mind worms of the entertainment-industrial complex pollute the psyche and suck away our precious time by hammering us with insane amounts of celebrity worship and trifling entertainment options, usually in the form of sit-down-and-watch programming that lulls the mind and sub-conscious mind into deep, hypnotic states of trance and suggestiveness. Television has become a theater of the absurd, and constantly works at further blurring the lines between reality and false-reality, tinkering with our ability to accurately perceive the difference between the important and the trivial.

The dogs of war and the military industrial complex are there to enrich the elite while dominating the poor and insubordinate. They heavily propagandize our world to create the perception of constant threats, working to corral us into the narrowest possible ‘us-versus-them,’ reptilian modes of consciousness, and to distract from legitimate issues and concerns.

Heavily beaten down by all of this, most people seek security in the comfort of being part of a collective, some sort of like-minded group, no matter what it may be. As survival mechanisms, people attach labels to themselves and embellish their egos, picking teams and choosing sides, following the leader wherever he may go. Some join the Democrat team or the Republican team, some side with their particular race, some take trivial associations like sports teams and university associations far too seriously. The divisions among us are are driven into the collective conscience which wields heavy influence over the individual by way of peer pressure and conformity. The result is robotic closed-minded madness.

Your Task at Hand

It’s simple to control someone’s reality when you have unlimited resources, a sophisticated media apparatus at your fingertips, and a monopoly on currency and security. Doubly so when you can dumb people down with toxic lifestyles and mindless distractions. The point of this conversation, however, is to promote the simple idea that awareness offers opportunity, and when we acknowledge the many limitations which are criminally placed on most of us here on earth, we give ourselves the creative freedom to seek out and discover ways of being and living that defy heavy currents of conformity.

It is now your personal responsibility to do your best to mitigate the effects of your exposure to all of this insanity, and to fortify yourself physically, mentally and spiritually. By doing so, you’ll quickly become a wizard of sorts, someone who develops a new kind of immunity to the insanity and toxicity of modern life. You’ll become resilient and fearless, a new kind of warrior, if you will. Take this message with you and detox, purge, cleanse, renew, revitalize, reconstruct, restart, and re-awaken yourself, so that the infinite and wonderful experience of being a human being, alive on this amazing planet at this particular time, will not have been stolen from you.

The top of a pyramid is an insignificant part of its structure when compared to the base, for, if even one cornerstone crumbles the capstone itself falls.
Dylan Charles is a student and teacher of Shaolin Kung Fu, Tai Chi and Qi Gong, a practitioner of Yoga and Taoist esoteric arts, and an activist and idealist passionately engaged in the struggle for a more sustainable and just world for future generations. He is the editor of WakingTimes.com, the proprietor of OffgridOutpost.com, a grateful father and a man who seeks to enlighten others with the power of inspiring information and action. His remarkable journey of self-transformation is a testament to the power of the will and the persistence of the human spirit. He may be contacted at wakingtimes@gmail.com.

What?!? Private prisons suing states for millions if they don’t stay full

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By Terry Shropshire

Source: rollingout.com

The prison-industrial complex is so out of control that private prisons have the sheer audacity to order states to keep beds full or face their wrath with stiff financial penalties, according to reports. Private prisons in some states have language in their contracts that state if they fall below a certain percentage of capacity that the states must pay the private prisons millions of dollars, lest they face a lawsuit for millions more.

And guess what? The private prisons, which are holding cash-starved states hostage, are getting away with it, says advocacy group, In the Public Interest.

In the Public Interest has reviewed more than 60 contracts between private prison companies and state and local governments across the country, and found language mentioning “quotas” for prisoners in nearly two-thirds of those contracts reviewed. Those quotas can range from a mandatory occupancy of, for example, 70 percent occupancy in California to up to 100 percent in some prisons in Arizona.

It is very interesting and telling that so few major national news organization are willing to report on the monstrous, ravenous and criminal system that is devouring hundreds of thousands of black and brown boys. Even those who do not subscribe to conspiracy theories have looked askance at this shocking report.

Welcome to the greatest manifestation of modern-day slavery, ladies and gentlemen.

One of those private prisons, The Corrections Corporation of America, made an offer last year to the governors of 48 states to operate their prisons on 20-year contracts, according to In the Public Interest.

What makes these deals so odious and unscrupulous? Take a look:

1) The offer included a demand that those prisons remain 90 percent full for the duration of the operating agreement. You know what that means: if there are not enough prisoners then there will be an unspoken push for police to arrest more people and to have the courts send more to prison for petty, frivolous and nonviolent crimes. There will also be a “nudge” for judges to hand down longer or maximum sentences to satisfy this “quota.”

2) Private prison companies have also backed measures such as “three-strike” laws to maintain high prison occupancy.

3) When the crime rate drops so low that the occupancy requirements can’t be met, taxpayers are left footing the bill for unused facilities.

The report found that 41 of 62 contracts reviewed contained occupancy requirements, with the highest occupancy rates found in Arizona, Oklahoma and Virginia.

In Colorado, Democratic Gov. John Hinklooper agreed to close down five state-run prisons and instead send inmates to CCA’s three corrections facilities. That cost taxpayers at least $2 million to maintain the unused facilities.

It is getting more difficult to rationalize the societal cost of keeping prisons full just to satisfy private investors who treat prisoners as commodity and cattle .