Category Archives: corporate news

The US economy has not recovered and will not recover

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By Paul Craig Roberts

Source: Intrepid Report

The US economy died when middle class jobs were offshored and when the financial system was deregulated.

Jobs offshoring benefitted Wall Street, corporate executives, and shareholders, because lower labor and compliance costs resulted in higher profits. These profits flowed through to shareholders in the form of capital gains and to executives in the form of “performance bonuses.” Wall Street benefitted from the bull market generated by higher profits.

However, jobs offshoring also offshored US GDP and consumer purchasing power. Despite promises of a “New Economy” and better jobs, the replacement jobs have been increasingly part-time, lowly-paid jobs in domestic services, such as retail clerks, waitresses and bartenders.

The offshoring of US manufacturing and professional service jobs to Asia stopped the growth of consumer demand in the US, decimated the middle class, and left insufficient employment for college graduates to be able to service their student loans. The ladders of upward mobility that had made the United States an “opportunity society” were taken down in the interest of higher short-term profits.

Without growth in consumer incomes to drive the economy, the Federal Reserve under Alan Greenspan substituted the growth in consumer debt to take the place of the missing growth in consumer income. Under the Greenspan regime, Americans’ stagnant and declining incomes were augmented with the ability to spend on credit. One source of this credit was the rise in housing prices that the Federal Reserve’s low interest rate policy made possible. Consumers could refinance their now higher-valued home at lower interest rates and take out the “equity” and spend it.

The debt expansion, tied heavily to housing mortgages, came to a halt when the fraud perpetrated by a deregulated financial system crashed the real estate and stock markets. The bailout of the guilty imposed further costs on the very people that the guilty had victimized.

Under Fed Chairman Bernanke, the economy was kept going with Quantitative Easing, a massive increase in the money supply in order to bail out the “banks too big to fail.” Liquidity supplied by the Federal Reserve found its way into stock and bond prices and made those invested in these financial instruments richer. Corporate executives helped to boost the stock market by using the companies’ profits and by taking out loans in order to buy back the companies’ stocks, thus further expanding debt.

Those few benefitting from inflated financial asset prices produced by Quantitative Easing and buy-backs are a much smaller percentage of the population than was affected by the Greenspan consumer credit expansion. A relatively few rich people are an insufficient number to drive the economy.

The Federal Reserve’s zero interest rate policy was designed to support the balance sheets of the mega-banks and denied Americans interest income on their savings. This policy decreased the incomes of retirees and forced the elderly to reduce their consumption and/or draw down their savings more rapidly, leaving no safety net for heirs.

Using the smoke and mirrors of under-reported inflation and unemployment, the US government kept alive the appearance of economic recovery. Foreigners fooled by the deception continue to support the US dollar by holding US financial instruments.

The official inflation measures were “reformed” during the Clinton era in order to dramatically understate inflation. The measures do this in two ways. One way is to discard from the weighted basket of goods that comprises the inflation index those goods whose price rises. In their place, inferior lower-priced goods are substituted.

For example, if the price of New York strip steak rises, round steak is substituted in its place. The former official inflation index measured the cost of a constant standard of living. The “reformed” index measures the cost of a falling standard of living.

The other way the “reformed” measure of inflation understates the cost of living is to discard price rises as “quality improvements.” It is true that quality improvements can result in higher prices. However, it is still a price rise for the consumer as the former product is no longer available. Moreover, not all price rises are quality improvements; yet many prices rises that are not can be misinterpreted as “quality improvements.”

These two “reforms” resulted in no reported inflation and a halt to cost-of-living adjustments for Social Security recipients. The fall in Social Security real incomes also negatively impacted aggregate consumer demand.

The rigged understatement of inflation deceived people into believing that the US economy was in recovery. The lower the measure of inflation, the higher is real GDP when nominal GDP is deflated by the inflation measure. By understating inflation, the US government has overstated GDP growth.

What I have written is easily ascertained and proven; yet the financial press does not question the propaganda that sustains the psychology that the US economy is sound. This carefully cultivated psychology keeps the rest of the world invested in dollars, thus sustaining the House of Cards.

John Maynard Keynes understood that the Great Depression was the product of an insufficiency of consumer demand to take off the shelves the goods produced by industry. The post-WW II macroeconomic policy focused on maintaining the adequacy of aggregate demand in order to avoid high unemployment. The supply-side policy of President Reagan successfully corrected a defect in Keynesian macroeconomic policy and kept the US economy functioning without the “stagflation” from worsening “Philips Curve” trade-offs between inflation and employment. In the 21st century, jobs offshoring has depleted consumer demand’s ability to maintain US full employment.

The unemployment measure that the presstitute press reports is meaningless as it counts no discouraged workers, and discouraged workers are a huge part of American unemployment. The reported unemployment rate is about 5%, which is the U-3 measure that does not count as unemployed workers who are too discouraged to continue searching for jobs.

The US government has a second official unemployment measure, U-6, that counts workers discouraged for less than one-year. This official rate of unemployment is 10%.

When long term (more than one year) discouraged workers are included in the measure of unemployment, as once was done, the US unemployment rate is 23%. (See John Williams, shadowstats.com)

Fiscal and monetary stimulus can pull the unemployed back to work if jobs for them still exist domestically. But if the jobs have been sent offshore, monetary and fiscal policy cannot work.

What jobs offshoring does is to give away US GDP to the countries to which US corporations move the jobs. In other words, with the jobs go American careers, consumer purchasing power and the tax base of state, local, and federal governments. There are only a few American winners, and they are the shareholders of the companies that offshored the jobs and the executives of the companies who receive multi-million dollar “performance bonuses” for raising profits by lowering labor costs. And, of course, the economists, who get grants, speaking engagements, and corporate board memberships for shilling for the offshoring policy that worsens the distribution of income and wealth. An economy run for a few only benefits the few, and the few, no matter how large their incomes, cannot consume enough to keep the economy growing.

In the 21st century US economic policy has destroyed the ability of real aggregate demand in the US to increase. Economists will deny this, because they are shills for globalism and jobs offshoring. They misrepresent jobs offshoring as free trade and, as in their ideology, free trade benefits everyone, claim that America is benefitting from jobs offshoring. Yet, they cannot show any evidence whatsoever of these alleged benefits. (See my book, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West.)

As an economist, it is a mystery to me how any economist can think that a population that does not produce the larger part of the goods that it consumes can afford to purchase the goods that it consumes. Where does the income come from to pay for imports when imports are swollen by the products of offshored production?

We were told that the income would come from better-paid replacement jobs provided by the “New Economy,” but neither the payroll jobs reports nor the US Labor Department’s projections of future jobs show any sign of this mythical “New Economy.”

There is no “New Economy.” The “New Economy” is like the neoconservatives promise that the Iraq war would be a six-week “cake walk” paid for by Iraqi oil revenues, not a $3 trillion dollar expense to American taxpayers (according to Joseph Stiglitz and Linda Bilmes) and a war that has lasted the entirety of the 21st century to date, and is getting more dangerous.

The American “New Economy” is the American Third World economy in which the only jobs created are low productivity, low paid nontradable domestic service jobs incapable of producing export earnings with which to pay for the goods and services produced offshore for US consumption.

The massive debt arising from Washington’s endless wars for neoconservative hegemony now threaten Social Security and the entirety of the social safety net. The presstitute media are blaming not the policy that has devastated Americans, but, instead, the Americans who have been devastated by the policy.

Earlier this month I posted readers’ reports on the dismal job situation in Ohio, Southern Illinois, and Texas. In the March issue of Chronicles, Wayne Allensworth describes America’s declining rural towns and once great industrial cities as consequences of “globalizing capitalism.” A thin layer of very rich people rule over those “who have been left behind”—a shrinking middle class and a growing underclass. According to a poll last autumn, 53 percent of Americans say that they feel like strangers in their own country.

Most certainly these Americans have no political representation. As Republicans and Democrats work to raise the retirement age in order to reduce Social Security outlays, Princeton University experts report that the mortality rates for the white working class are rising. The US government will not be happy until no one lives long enough to collect Social Security.

The United States government has abandoned everyone except the rich.

In the opening sentence of this article, I said that the two murderers of the American economy were jobs offshoring and financial deregulation. Deregulation greatly enhanced the ability of the large banks to financialize the economy. Financialization is the diversion of income streams into debt service. When debt service absorbs a large amount of the available income, the economy experiences debt deflation. The service of debt leaves too little income for purchases of goods and services and prices fall.

Michael Hudson, whom I recently wrote about, is the expert on financialization. His book, Killing the Host, which I recommended to you, tells the complete story. Briefly, financialization is the process by which creditors capitalize an economy’s economic surplus into interest payments to themselves. Perhaps an example would be a corporation that goes into debt in order to buy back its shares. The corporation achieves a temporary boost in its share prices at the cost of years of interest payments that drain the corporation of profits and deflate its share price.

Michael Hudson stresses the conversion of the rental value of real estate into mortgage payments. He emphasizes that classical economists wanted to base taxation not on production, but on economic rent. Economic rent is value due to location or to a monopoly position. For example, beachfront property has a higher price because of location. The difference in value between beachfront and non-beachfront property is economic rent, not a produced value. An unregulated monopoly can charge a price for a service that is higher than the price that would bring that service unto the market.

The proposal to tax economic rent does not mean taxing you on the rent that you pay your landlord or taxing your landlord on the rent that you pay him such that he ceases to provide the housing. By economic rent Hudson means, for example, the rise in land values due to public infrastructure projects such as roads and subway systems. The rise in the value of land opened by a new road and housing and in commercial space along a new subway line is not due to any action of the property owners. This rise in value could be taxed in order to pay for the project instead of taxing the income of the population in general. Instead, the rise in land values raises appraisals and the amount that creditors are willing to lend on the property. New purchasers and existing owners can borrow more on the property, and the larger mortgages divert the increased land valuation into interest payments to creditors. Lenders end up as the major beneficiaries of public projects that raise real estate prices.

Similarly, unless the economy is financialized to such an extent that mortgage debt can no longer be serviced, when central banks lower interest rates property values rise, and this rise can be capitalized into a larger mortgage.

Another example would be property tax reductions and legislation such as California’s Proposition 13 that freeze in whole or part the property tax base. The rise in real estate values that escape taxation are capitalized into larger mortgages. New buyers do not benefit. The beneficiaries are the lenders who capture the rise in real estate prices in interest payments.

Taxing economic rent would prevent the financial system from capitalizing the rent into debt instruments that pay interest to the financial sector. Considering the amount of rents available to be taxed, taxing rents would free production from income and sales taxation, thus lowering consumer prices and freeing labor and productive capital from taxation.

With so much of land rent already capitalized into debt instruments shifting the tax burden to economic rent would be challenging. Nevertheless, Hudson’s analysis shows that financialization, not wage suppression, is the main instrument of exploitation and takes place via the financial system’s conversion of income streams into interest payments on debt.

I remember when mortgage service was restricted to one-quarter of household income. Today mortgage service can eat up half of household income. This extraordinary growth crowds out the production of goods and services as less of household income is available for other purchases.

Michael Hudson and I bring a total indictment of the neoliberal economics profession, “junk economists” as Hudson calls them.

Markets Ignore Fundamentals And Chase Headlines Because They Are Dying

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By Brandon Smith

Source: Alt-Market.com

Normalcy bias is a rather horrifying thing. It is so frightening because it is so final; much like death, there is simply no coming back. Rather than a physical death, normalcy bias represents the death of reason and simple observation. It is the death of the mind and cognitive thought instead of the death of the body.

Ever since the derivatives collapse of 2008 the public has been regaled with wondrous stories of recovery in the mainstream to the point that such fantasies have become the “new normal”. These are grand tales of the daring heroics of central bankers who “saved us all” from impending collapse through gutsy monetary policy and no-holds-barred stimulus measures.

Alternative economists have not been so easy to dazzle. Most of us found that the recovery narrative lacked a certain something; namely hard data that took the wider picture into account. It seemed as though the mainstream media (MSM) as well as the establishment was attempting to cherry-pick certain numbers out of context while demanding we ignore all other factors as “unimportant.”

We just haven’t been buying into the magic show of the so called “professional economists” and the academics, and now that the real and very unstable fiscal reality of the world is bubbling to the surface, the general public will begin to see why we have been right all these years and the MSM has been utterly wrong.

Mainstream economists have done absolutely nothing in the way of investigative journalism and have instead joined a chorus cheerleading for the false narrative, singing a siren’s song of misinterpreted statistics and outright lies drawing the masses ever nearer to the deadly shoals of financial crisis.

Why do they do this? Are they part of some vast conspiracy to mislead the public?

Not necessarily. While central banks and governments have indeed been proven time and again to collude in efforts to cover up financial dangers, most economists in the media are simply greedy and ignorant. You have to remember, they have a considerable stake in this game.

Many mainstream economists tend to have sizable investment portfolios and they base their careers partly on the successes they garner in the annual profits they accumulate playing the equities roulette. They also have invested so much of their public image into their pro-market and recovery arguments that there is no going back. That is to say, they have a personal interest in using their positions in the media to engineer positive market psychology (if they are able) so that their portfolios remain profitable. Not to mention, their professional image is at stake if they ever acknowledge that they were wrong for so long about the underlying health of the real economy.

This atmosphere of deluded self interest also generates a cult-like collectivist attitude. There is a lot of mutual back scratching and mutual ego stroking in the MSM; a kind of inbred conduit of regurgitated arguments and unoriginal talking points, and people in the club rarely step out of line because they not only hurt their own investment future and career, they also hurt everyone in their professional circles.  Meaning, no more cocktail party invitations to the Forbes rumpus room…

This is not to say that I am excusing their self interested lies and disinformation. I think that many of these people should be tarred and feathered in a public square for attempting to dissuade the public from preparing in a practical way for severe economic instability. I do not think they see themselves as being responsible to the people who actually take their nonsense seriously and their attitude needs adjustment. I am only explaining how it is possible for an entire profession of supposed “experts” to be so wrong so often. Mainstream financial analysts WANT to believe their own lies as much as many in the public want to believe them.

Like I said, normalcy bias is a rather horrifying thing.

One of the root pieces of disinformation in the mainstream that feeds all other lies is the disinformation surrounding falling global demand. MSM pundits cannot and will never fully admit to the cold hard reality of collapsing demand within the global economy. If they are forced to admit to falling demand, then the facade of a steady or recovering U.S. economy crumbles.

I covered the facts behind falling global demand for raw goods and consumer goods last year in part one of my six-part article series, ‘One Last Look At The Real Economy Before It Implodes.’ The hard evidence and numbers I presented have only become more important in recent months.

For example, U.S. inventories are building and freight shipments are declining in the U.S. as retailers cite falling demand for goods as the primary culprit. Official retail sales numbers for the holiday season of 2015 have come in flat. When one takes into account real inflation in prices, consumer sales are actually far in the negative. According to the more accurate methods the U.S. government used to use in their calculations of CPI in the 1980’s, we are looking at annual price inflation rate of around 7%. Price inflation does not necessarily equal improved sales.

Energy usage has been crushed since 2008. Despite a growing population and supposedly a growing economic system, oil consumption in 2014 according to the World Economic Forum dropped to levels not seen since 1997.

This is the exact opposite of what should be happening and it is the opposite of mainstream projections for oil consumption made back in 2003. This is why inventories and storage for oil across the globe are reaching capacity in a manner never seen before. American demand for oil is not growing exponentially as expected because Americans cannot afford to support such growth anymore. Falling energy demand at these extreme levels is an undeniable indicator of a failing economic system.

Of course, mainstream economists in their desperation to keep market psychology rolling forward and the equities casino producing profits seek to spin this problem as an “oversupply” issue rather than a demand issue. And this is where the disparity in their arguments begins to bleed through.

Here is the problem presented in the mainstream; what came first, the chicken or the egg? Did falling demand lead to oversupply and thus a fall in prices? Or, is demand remaining steady and is overproduction the cause of falling prices?  Yes, let’s confuse the issue instead of looking at the obvious.

As already linked above, it was falling demand which came first in 2008, and demand which continues to fall in relation to past trends. Have producers failed to reduce oil production to match falling demand? Yes. But this does not change the fact that oil demand today is well below levels needed to sustain the kind of economic growth markets have come to expect. Mainstream economists attempt to distract by hyper-focusing on supply, or twisting the discussion into an either/or scenario. Either it is a supply problem, or it is a demand problem, and they assert it is only a supply problem. This is not reality.

In fact, both can and often do exist at the same time, though one problem usually feeds the other. Falling demand does tend to result in oversupply in any particular sector of the economy. The bottom line, however, is that in our current crisis demand is the driving force and supply is a secondary issue. Supply is NOT the driving force behind the volatility in oil markets. Period.

This same chicken and egg distraction rears its ugly head in discussions on shipping markets as well.

The mainstream claim that the historic implosion of the Baltic Dry Index is nothing more than a problem of “too many ships” operating in the cargo market has been throttled, dissected and debunked so many times that you would think that it is surely dead. But the lie just will not die.

Mainstream propaganda houses like The Economist and Forbes continue to produce articles on a regular basis which deny the issue of falling demand for raw goods and claim that oversupply of vessels is the root cause of the BDI losing around 98 percent of its value since its highs in 2008.

I haven’t seen any of these articles offer actual stats or evidence to back their claims that oversupply of ships is the culprit and that demand is not a legitimate issue. But beyond that, why does the mainstream seem so hell bent on dismissing the BDI as a reliable economic indicator? Well, because shipping rates fall when demand falls, thus, when the BDI falls, it signals a lack of global demand. This is a fact they refuse to accept. When the BDI falls by 98 percent since the 2008 highs preceding the derivatives crisis, this signals a disaster in the making.

So, let’s stamp out the “too many ships came first” disinformation once and for all, shall we?

Shipping companies like Maersk Lines have already publicly admitted that falling global demand is the core problem behind falling rates and that supply is a secondary driver. They view the current financial crisis to be “worse than 2008”.

The fact that the largest shipping company in the world is warning of falling demand does not seem to be having any effect on the mainstream talking heads, though.

So, what do major shipping companies do when demand is falling and too many ships are operating on the market? Do they field those ships anyway and drive rates down even further? No, that makes no sense.

What companies do is either leave ships idle in port or scrap them. According to BIMCO (Baltic And International Maritime Council), 2015 was the busiest year since 2012 for the scrapping of older ships to make way for new arrivals. This process of scrapping ships or storing them idle destroys the argument that too many ships are driving falling rates in the BDI. In fact, as chief shipping analyst Peter Sand of BIMCO stated last year:

“The increase in Capesize scrapping comes at a much needed time for the market. Looking at the development so far this year the fleet growth has actually been negative, with a reduction of 0.8 %.”

I hope the garbage peddlers at Forbes and The Economist caught that — NEGATIVE growth of ship supply, not massive over-growth of ship supply. The scrapping increase was also across the board for other models of ships, not just the Capsize, and the increase of cargo capacity by new ships has been negligible.  Yet, shipping rates continue to plummet to historical lows.  Only falling demand, as Maersk Lines admits, explains the crash of the BDI in light of this information.

China in particular has been offering considerable incentives to those companies that do scrap older ships, to the point that some are even scrapping semi-new ships in order to cash in.

Now, this is not to say there is not an “oversupply” of ships. There are indeed many ships within cargo fleets that are not in operation. But again, this is because demand has declined so completely that even with increased scrapping and idling, shipping companies cannot keep up.  Falling demand OCCURRED FIRST, and oversupply is nothing more than a symptom of this root problem.

So, mainstream hacks, can we please put the “too many ships” nonsense to rest and get on with a real discussion on obvious issues of demand?  Stop focusing on the symptoms and examine the cause for once.

These are just a few of the hundreds of fundamental problems plaguing the global economy today, and they are all problems that the mainstream continues to ignore or dismiss out of hand. Which brings us to the now accelerating volatility in stock markets.

Stock markets are crashing, there is no other way to paint it. They are crashing incrementally, but crashing nonetheless. When you have violent swings in equities and commodities between 5 percent and 10 percent a day, then something is very wrong with your economy and has been wrong for some time. If global consumption and demand were really steady or growing, then you would not see the kind of systemic backlash in the financial system that we are now seeing.  If companies listed on the Dow were making legitimate profits due to a healthy consumer base and enjoying solid expansion, stocks would not be increasingly volatile.  If investors and mainstream analysts actually looked at the real numbers in demand (among other things), then the strange behavior in markets would be easy for them to understand. They will not look at such numbers until it is too late.

Instead, markets have chosen to chase headlines, and here is where the ugly circle of normalcy bias and cognitive dissonance completes itself. There are no positive indicators within the fundamentals today to energize market faith or market investment. So, investors and algorithmic trading computers track news headlines instead. The MSM hacks now have the power (along with central banks and governments) to create massive stock rallies with one or two carefully placed news tags, such as “Russia To Discuss Oil Production Cuts With OPEC.”

Market speculators and trading computers jump on these headlines without verifying if they are true. In most cases, they end up being false or just hearsay from an “unnamed source.” And so, the markets then crash further down into the abyss, waiting for the next headline to bolster activity even for a day.

The sad truth is, if any of these headlines turned out to be legitimate, their effect would still be meaningless in the long run as the overwhelming weight of the fundamentals continues to topple poorly placed optimism. Now that the investment world no longer has the certainty of central bank intervention as a useful tool, they don’t know if bad news is good news or if good news is bad news. The fact that the system is moving into a death spiral without the psychological crutch of central bank stimulus measures should tell you all you need to know about the supposed recovery since 2008.

No society wants to admit economic failure or economic sabotage, and this is why the con-game is able to continue in the face of so much concrete truth. Ultimately, the market trends and economic trends will flow into the negative. In the meantime, expect massive market rallies, rallies which will then disintegrate in a matter of days. And, whatever happens, never take what mainstream economists say very seriously. They have failed the public for long enough.

The glorification of Antonin Scalia

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By Tom Carter

Source: WSWS.org

The sickening tributes across the official US political and media spectrum to Supreme Court Justice Antonin Scalia, who died suddenly on Saturday at the age of 79, are a barometer of the putrefaction of American democracy.

The universal deference towards Scalia from what passes for the “liberal” faction of the establishment is particularly repulsive. The statements of the Democratic presidential candidates, the supposed “socialist” Bernie Sanders no less than Hillary Clinton—echoing similarly sycophantic drivel from the likes of the New York Times—are monuments to political cowardice.

One would say these people lack the courage of their convictions if they had any convictions to lack!

They have sprung into action to join their Republican counterparts in hailing Scalia as a towering figure in American jurisprudence. Virtually every description of the deceased justice includes the words “brilliant” and “intellectual.” One is reminded of the programmed acclamation of Sergeant Raymond Shaw recited by his brainwashed fellow soldiers in the film The Manchurian Candidate: “Raymond Shaw is the kindest, bravest, warmest, most wonderful human being I’ve ever known in my life.”

Sanders took time off from his hollow calls for a “political revolution” to demonstrate his political obeisance to the ruling class, declaring, “While I differed with Justice Scalia’s views and jurisprudence, he was a brilliant, colorful and outspoken member of the Supreme Court.”

Clinton praised Scalia as “a dedicated public servant who brought energy and passion to the bench.”

President Obama called Scalia a “towering legal figure.” The New York Times’ Ross Douthat hailed Scalia for “putting originalist principle above a partisan conservatism,” and for his “combination of brilliance, eloquence, and good timing.”

No one dares say what needs to be said. The object of their veneration was a black-robed thug and sadist who used his position on the bench to attack the basic civil liberties laid down in the US Constitution and Bill of Rights—separation of church and state; due process; protection from arbitrary arrest, search and seizure; the right to trial by jury; protection from cruel and unusual punishment; the right to vote.

His supposed juridical brilliance boiled down to starting with the political outcome he desired (invariably reactionary) and then cobbling together pseudo-legal arguments to justify his ruling—often with flagrant disregard for legal precedent and the unambiguous language of statutes and constitutional provisions.

In one case last year, Scalia argued that a police officer did not use “deadly force” when he climbed onto an overpass and used an assault rifle to kill an unarmed man fleeing in a car. According to Scalia’s reasoning, it was not deadly force because the officer claimed to have been aiming at the car, not the person in the car.

Perhaps the most infamous example of this method—absurdly described in the media as “constitutional originalism”—was the 2000 Supreme Court decision Scalia engineered to halt the counting of votes in Florida and hand the White House to the loser of the election, Republican candidate George W. Bush.

The 5-4 decision to steal the election all but acknowledged its own speciousness when it declared that the justifications it advanced could not be applied to any future cases. In his separate concurring opinion, Scalia declared that the Constitution did not give the people the right to elect the president.

At the time of the theft of the 2000 elections, the World Socialist Web Site wrote that the Supreme Court’s decision to stop the counting of votes, and the acceptance of that ruling by the Democrats and the entire political establishment, demonstrated that there was no longer any significant constituency for democratic rights within the American ruling class. The reaction to Scalia’s death is a measure of the further erosion of democratic sentiment in the ruling elite.

Scalia personified the decay of bourgeois democracy in the United States over a protracted period of time. Appointed to the bench by Ronald Reagan, he flourished and exerted increasing influence in the decades of political reaction, militarism and Wall Street criminality that ensued, continuing without a hitch under Obama. Not only in the anti-democratic substance of his rulings, but also in his methods and bearing, he embodied the promotion by the ruling elite of backwardness, prejudice and outright cruelty.

He was corrupt and made no bones about his corruption, proudly voting to remove limits on corporate bribes in elections and flaunting his private outings with Vice President Dick Cheney while the latter was a party in a case before the court. He was a bully, making a practice of baiting and harassing lawyers who came before him.

Throughout his career, Scalia consistently advocated positions that can only be described as barbarous and fascistic. Fittingly, his last judicial act was to deny a stay of execution. He was a figure who relished the power and trappings of the state, openly defending torture and internment camps.

Scalia worked tirelessly to break down constitutional and democratic limits on state power, infiltrating fascistic doctrines into Supreme Court jurisprudence. His theory of executive power, according to which the American president has unlimited and unreviewable powers for the duration of the “war on terror,” resurrects Nazi jurist Carl Schmitt’s “state of exception” doctrine in all but name.

Scalia’s mere presence on the court testified to the advanced decay of American democracy. That decay is linked, on the one hand, to the extreme growth of social inequality, accompanied by the rampant parasitism and criminality of the ruling class, and on the other hand to unending war, which has its domestic reflection in the build up of the repressive state apparatus that Scalia championed.

The bitterness of the disputes over his replacement is a reflection of the importance of his role in American politics over three decades during which the political establishment shifted violently to the right.

The deference shown to such a figure from all quarters of the political establishment should be taken as a warning by the working class. The ruling elite fears above all the growth of social opposition and class struggle. It exalts the legacy of Scalia because it is preparing police state methods to defend its power and property against an insurgent working class.

 

Related Article: Scalia’s Black Beemer by Greg Palast

The Popular Myth of Democracy in America

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By Stephen Lendman

Source: SteveLendmanBlog

No nation in world history promised more and delivered less to its citizens and people worldwide. None more greatly threatens world peace – putting humanity’s survival up for grabs like never before.

None did more harm to more people globally over a longer duration. None matches the menace it represents – a presstitute media supported fascist gangster state willing to risk destroying planet earth to own it, run by a bipartisan criminal class.

From inception, America was always run by the people who own it, as first Supreme Court Chief Justice John Jay explained.

John Adams believed power belonged exclusively to the rich, well-born and able. Today it’s about monied interests in charge – deciding who holds all top positions in government, elected and appointed.

People have no say whatever. Ignore electoral politics, intended solely to deceive – manipulating people to believe new bums are more worthy than current ones.

Voting is a waste of time, accomplishing nothing. Duopoly power rules.

America is a one-party state with two wings, indistinguishable from each other on issues mattering most – militantly pro-war, pro-business, anti-populist no matter what names and faces hold top positions.

Police state laws enforced by powerful security forces at the federal, state and local levels assure wealth and privilege interests are exclusively served at the expense of public welfare.

Elections are farcical, exercises in theater, not democracy. Candidates for the nation’s top offices are cardboard cutouts of each other, distinguishable only by their disingenuous rhetoric – promises made, forgotten and broken once in office.

The public interest be damned. People are used, not served, deceived to believe politicians represent them.

Embedded power runs America, politicians serving entrenched interests exclusively, chosen for that reason. Ordinary people thinking their enfranchisement matters are living in a fantasy world.

Government of, by and for the people is the grandest of grand hoaxes. Media scoundrels perpetuate the myth with all the familiar slogans and high-minded posturing.

Jimmy Carter was right last summer calling America an “oligarchy with unlimited political bribery…a complete subversion of our political system as a payoff to major contributors.”

Republicans and Democrats operate by the same corrupted standards. “(U)nlimited) money” serves their interests at the expense of constituents they represent.

America’s system is too debauched to fix. It’s too late for tinkering around the edges.

A complete makeover is needed – a popular revolution, replacing oligarchy with grassroots democracy for the first time in the nation’s history, freed from money control.

Today is the most perilous time in world history. We have a choice.

Accept the status quo, its endless wars, oligarch control over the greater good, unprecedented wealth disparity between rich and all others, along with harsh crackdowns on nonbelievers and risk of potential humanity destroying nuclear war – or refuse any longer to tolerate a system responsible for so much harm and misery to so many people worldwide.

Survival depends on choosing wisely. What kind of world do you want to live in? What kind do you want your children to inherit?

 

Stephen Lendman lives in Chicago. He can be reached at lendmanstephen@sbcglobal.net. 

His new book as editor and contributor is titled “Flashpoint in Ukraine: US Drive for Hegemony Risks WW III.”

http://www.claritypress.com/LendmanIII.html

Visit his blog site at sjlendman.blogspot.com. 

Saturday Matinee: Struggle

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From MentalRev Productions:

Struggle is a case study of the 2004 Presidential Election in Ohio, the deciding swing state which delivered the presidency once again to George W. Bush. Diligently researched by the key contributors to the film, Struggle is a bold film that challenges the legitimacy of that Presidential Election and brings the entire US electoral process into question.

This gripping documentary is filmed with a mix of expert testimony and first-hand accounts of voters whose votes were suppressed or manipulated, and community members who protested for election reform and justice in the State and National Capitals. This informative, engaging and tense film is told from a grass roots perspective, from the ground up, without the filters of mainstream media framing the dialogue. Filmed with a handheld style that reflects the intensity of the moment, this film identifies the practices of Individual and State entities to silence protest and manipulate elections in the United States.

This film was made without the resources of mainstream media or a highly funded political campaign. This is a grass roots film that speaks truth to power, with your help we will magnify that voice and demand free and fair elections for all Americans.

https://vimeo.com/50791629

Zika: Why Biotech is Imperative to National Security

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By Ulson Gunnar

Source: New Eastern Outlook

When we think of national security, we think of tanks, jets, missile defense systems and more recently, information space. But what about the realm of the microscopic, the biological or the genetic?

Whether you think biotechnology, genetics and microbes constitute another plane upon the modern battlefield or not is irrelevant. Someone else already does, and they have a head start on the rest of the world.

Genotype Specific Bioweapons

The Project for a New American Century or PNAC for short, penned a particularly unhinged policy paper in 2000 titled, “Rebuilding America’s Defenses: Strategy, Forces and Resources For a New Century.”

In it, among many other things, it specifically writes:

Although it may take several decades for the process of transformation to unfold, in time, the art of warfare on air, land, and sea will be vastly different than it is today, and “combat” likely will take place in new dimensions: in space, “cyber-space,” and perhaps the world of microbes.

…advanced forms of biological warfare that can “target” specific genotypes may transform biological warfare from the realm of terror to a politically useful tool.

Advanced forms of biological warfare that can “target” specific genotypes sound like the stuff of science fiction, and even if it were developed, it would be by the “bad guys,” right?

Wrong. As a matter of fact, the Western-backed apartheid government in South Africa in the 1980’s under Project Coast, attempted to create genotype specific bioweapons aimed at sterilizing the nation’s black women. PBS Frontline’s article, “What Happened in South Africa?” would recount:

In 1998 South Africa’s Truth and Reconciliation Commission held hearings investigating activities of the apartheid-era government. Toward the end of the hearings, the Commission looked into the apartheid regime’s Chemical and Biological Warfare (CBW) program and allegations that it developed a sterility vaccine to use on black South Africans, employed toxic and chemical poison weapons for political asssassination, and in the late 1970s provided anthrax and cholera to Rhodesian troops for use against guerrilla rebels in their war to overthrow Rhodesia’s white minority rule.

While South Africa’s entire CBW program was abhorrent, what is particularly frightening is the use of South Africa’s national vaccination program as a vector for infecting black women with viruses meant to sterilize them. Now that vaccination programs are being pushed globally, there lies the danger that such weapons could be used against entire regions of the planet.

PBS would elaborate further on the CBW program, stating that the South African government:

Developed lethal chemical and biological weapons that targeted ANC [African National Congress] political leaders and their supporters as well as populations living in the black townships. These weapons included an infertility toxin to secretly sterilize the black population; skin-absorbing poisons that could be applied to the clothing of targets; and poison concealed in products such as chocolates and cigarettes.   

PNAC’s dream of genotype specific bioweapons then, is not some far-off science fiction future, it is something that has been pursued in earnest for decades, and apparently by interests aligned to the West, not enemies of it.

Zika and GM Mosquitoes 

Though it is so far impossible to confirm a link between the two, it is troubling nonetheless to see the mosquito-transmitted Zika virus spreading in Brazil precisely from where GM (genetically modified) mosquitoes were released several years ago.

A 2012 entry in Nature titled, “Brazil tests GM mosquitoes to fight Dengue,” would report:

Scientists in Brazil say an experiment to reduce populations of the dengue-carrying Aedes aegyptimosquito, by releasing millions of genetically modified (GM) insects into the wild, is working.

More than ten million modified male mosquitoes were released in the city of Juazeiro, a city of 288,000 people, over a period of time starting a year ago.

The US CDC (Center for Disease Control) would report that Zika virus cases in northeast Brazil were first officially recognized in early 2015, with international hysteria finally reached early this year. The cases seem most concentrated in the Brazilian state of Pernambuco, upon the borders of which the city of Juazeiro lies.

What could have happened between 2011 and 2016 that might have led to this development? Could the GM mosquitoes designed to stamp out dengue have mutated in some unpredictable way? And could this experiment have caused the Zika virus itself to mutate in an unpredictable way? It already has mutated once, allowing it to spread among humans more prolifically.

Or what if GM mosquitoes supposedly meant to wipe out dengue were serving as a vector for something else entirely? We can only imagine the sort of stories, excuses and feigned ignorance the South African government would have conjured had its genotype specific bioweapons worked, and black women began turning up sterilized in huge numbers after receiving their “vaccines.”

Mosquitoes as a Vaccine Vector 

Using mosquitoes as a vector to deliver engineered genetic material to humans as a sort of involuntary, inescapable “vaccine” is already a reality. The London Telegraph in its article, “Genetically modified mosquitos could be used to spread vaccine for malaria,” reported in 2010 that:

Experts believe “flying vaccinators” could eventually be a radical new way of tackling malaria.

The new approach targets the salivary gland of the Anopheles mosquito.

Scientists in Japan have engineered an insect producing a natural vaccine protein in its saliva which is injected into the bloodstream when it bites.

The “prototype” mosquito carries a vaccine against Leishmania, another potentially fatal parasite disease spread by sand flies.

And if mosquitoes can naturally deliver viruses, and scientists can alter what mosquitoes carry and infect hosts with, it is possible to engineer viruses to deliver virtually anything into targeted populations much in the same way viruses are re-engineered into vectors in labs today through a process called gene therapy. In the wrong hands, this technology and these techniques could become terrifying weapons.

For those in the middle of the Zika virus hysteria, perhaps it already has.

How Could They? Why Would They?

To answer “how could they possibly do something so diabolical?” we need only think back to 2003 and recall how the United States intentionally lied to the world, then between its initial invasion and subsequent occupation of Iraq, killed upward to a million people. This includes several thousand of its own soldiers and civilians, many of whom it appears were killed by militants armed and funneled into the country by the United States’ closest regional allies, with the US’ resolute backing.

To answer “why” American and European special interests seek to render any particular population sick, weak and they and/or their offspring incapable of  perpetuating a viable civilization, PNAC itself sums it up quite clearly:

The United States is the world’s only superpower, combining preeminent military power, global technological leadership, and the world’s largest economy. Moreover, America stands at the head of a system of alliances which includes the world’s other leading democratic powers. At present the United States faces no global rival. America’s grand strategy should aim to preserve and extend this advantageous position as far into the future as possible.

A population racked with birth defects, diminishing health and IQs and a lack of physical vitality constitutes the enemy every hegemon throughout history has dreamt of facing both on the battlefield and upon the grand chessboard of geopolitics.

Whether the Zika outbreak is linked to some insidious biowarefare program, an experiment gone wrong or simply the forces of nature, it showcases the danger biology can pose and reminds us of what greater dangers may yet await us if we do not properly prepare and protect ourselves.

Domestic Biotech is Imperative to National Defense 

It has been almost painful to watch the rest of the world attempt to catch up to the United States and Europe in the information war. For decades the West dominated information warfare without contest.

Only now have nations like Russia, China, Iran and others finally caught up and in some cases exceeded Western capabilities. Only now are nations finally investing seriously in information and cyber warfare capabilities. Only now does it seem that nations realize the folly of depending on others for both information, and information technology.

Russia recently decided to switch to local computer processor manufacturers to run on all computers used for official business. This is because foreign corporations making processors imported into the Russian Federation had been apparently compromised on the factory floor with the cooperation of these foreign corporations by US intelligence agencies.

We can easily imagine the danger of having US intelligence agencies getting into Russia’s IT infrastructure through these backdoor passes. It doesn’t take much imagination to think about the trouble US intelligence agencies could cause if they could get inside Russia’s human, natural and agricultural genomes.

Developing a viable domestic biotech industry is not only a matter of economic prosperity, but clearly also a matter of vital national security. Foreign corporations should no better be able to access a nation’s “genetic code and files” than it can its computer code and files. After all, genetic information is not entirely unlike digital information.
Brazil and other nations that have invited foreign biotech corporations to meddle with their human, natural and agricultural genomes are likened to those nations who hand their vital infrastructure over to foreign interests only to find out through Wikileaks years later the sort of invasive spying, abuses and other means of self-serving treachery this access has been exploited for.

Let’s not wait for Wikileaks to tell us 10 years from now just how bad the nations of the world had been infiltrated and exploited through biotechnology before we recognize this industry as absolutely vital to national security and begin investing in it domestically, rather than outsourcing it overseas.

 

Ulson Gunnar, a New York-based geopolitical analyst and writer especially for the online magazine “New Eastern Outlook”.

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2016 The Year Ahead

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By Neil Kramer

Source: NeilKramer.com

2016 will rigorously test people’s readiness to embody their truth. Can we live the wisdom and transformation we’ve been cultivating over years of study, journeying, and contemplation? Can we summon the strength to have our outside accurately reflect our inside? Are we ready to run our own world yet?

In many schools of mystical study, polarity is a key principle. The student is taught that everything in life is dual. All phenomena have pairs of opposites, as observed in the primal forces of birth and death, day and night, order and chaos, joy and sorrow. Over time, through experientially mapping and understanding the interplay of each set of polarities in our own lives, we may gradually determine a point of equilibrium that reveals the hidden teachings of these mysterious fluctuations. What we must be careful to avoid, is clinging to just one end of life’s naturally divergent polarizations. And herein lie the trials set forth in the world’s current crises.

At every turn, the synthetic culture of Empire implores us to throw our hearts and minds into unconscious polarization. It wants us to radicalize ourselves to either patriot or terrorist, believer or atheist, white or black, liberal or conservative, strong or weak, and then embark on an endless crusade to reform, condemn, or destroy the other side. This one-way polarization renders all participants impotent, regardless of which side they pick. This subtle but devastating trick deactivates our will and we automatically forfeit our capacity to rule ourselves. Lost in unconscious polarization, we serve Empire.

Nevertheless, whilst Empire’s constant telegraphing of fear can be unsettling, its power to deceive is unquestionably failing to influence legions of honorable humans who refuse to hand over their discernment to the corrupt and compliant media. The sock puppet terror cells and fabricated economic cataclysms are fraying at the edges and their artificial nature is pitifully evident. The official narrative betrays only those who choose to hide from reality. For them we can do nothing, until they do something for themselves.

It is my heartfelt observation that a critical threshold of spiritually alive humans have grown so excellently in confidence and wisdom, that the old hierarchies must resort to ever more vulgar contrivances to preserve their reins of power. Understand then, that the daybreak of a new higher consciousness will be heralded not by gentle awakenings and well-mannered transitions, but by bewildering fragmentation. Just as these patterns of collapse were experienced in many people’s personal lives throughout 2015, so now they are shaking the very foundations of Empire. Towering ramparts that once seemed so impossibly daunting and everlasting, will soon be little more than forlorn ruins.

We are upon the eve of the grand winter solstice of Empire, and the longest darkest night will seem interminably protracted and bone-chillingly cold. But like all things, this too shall pass. And the daylight will lengthen and the new growth that we have envisioned for so long will blossom – if we let it. We made Empire and we must unmake it. As a thing is bound, so it is unbound. Deeds not words. Learn the art of depolarization and nothing can stop you.

Jihadi John Version 2.0

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JihadiJohnV1V2

By Ulson Gunnar

Source: Land Destroyer

It didn’t take long for IS (Islamic State) to find a new cartoon-style villain to fill the shoes of Mohammed “Jihadi John” Emwazi. The masked villain often appeared in high-value productions, narrating them with a perfect British accent, as the enemies of IS were slain in increasingly elaborate and equally gruesome manners.

Just as Jihadi John’s villainy reached a crescendo, the US claimed it targeted and killed him in a drone strike. Nothing resembling actual confirmation was produced afterward, and many questioned the value or impact of eliminating what was for all intents and purposes merely a figurehead.

Instead of actually identifying and dismantling IS on the battlefield, the US appears to be faux-fighting the organization in a public relations campaign mimicking the simplistic narratives children might see during a G.I Joe episode on Saturday morning:

“The bad guy died, we are winning.”  

However, Western audiences have a shrinking attention span coupled with a growing awareness that everything they see on the news is likely at the very least, ‘spun.’ Despite this skepticism, US and European news services insist on serving up intelligence-insulting narratives seemingly designed for the minds of children, not educated, informed adults.

So just as Jihadi John’s memory began to fade from the collective narrative the US and European media pummels its audiences with daily, Jihadi John version 2.0 has been introduced. This IS doppelganger denizen appears almost identical to his predecessor, with the only difference being his brandishing of a pistol instead of a combat knife.

CNN reports in its article New ‘Jihadi John’? British-sounding militant features in new ISIS video, that:

An English-speaking child, and a British-sounding militant who brings to mind ISIS’ previous propagandist, ‘Jihadi John,’ appear in the latest, chilling propaganda video from ISIS.

In the video, which has not yet been independently verified, the child says that the group will kill “kuffar’ — nonbelievers — “over there,” referring to the West, while the adult threatens and insults British Prime Minister David Cameron. 

The speaker’s accent and dress bring to mind the previous — masked — face of the terror group, Mohammed Emwazi, otherwise known as “Jihadi John.” Emwazi was understood to have been killed in Raqqa late last year in an airstrike which specifically targeted the Briton. His absence lends credence to Western intelligence agencies’ belief that he is indeed dead.

Jihadi John 2.0 is still narrating IS’ high-value productions, which include gruesome executions, and the US and European media is still using him as the very convenient, extremely easy-to-hate face of IS. That Jihadi John 2.0 is taunting British Prime Minister David Cameron, is highly suspicious, considering that the British have been “fighting” IS for over a month now, but have conducted only 3 airstrikes, versus dozens of strikes daily by Russia accompanied by offensives carried out by a reinvigorated Syrian military on multiple fronts.

It’s almost as if this cartoon character, Jihadi John, is meant to intentionally offend Western sensibilities, provoking support for an otherwise unpopular and unjustifiable foreign military adventure in a country the US and UK do not otherwise belong meddling in.

Who is Jihadi John 2.0? Who Knows? Who Cares?

Ultimately, it doesn’t matter who any of the incarnations of Jihadi John are. The role this figurehead plays in IS’ overall operation is actually superficial at best, and under closer scrutiny, aiding and abetting US and European meddling in the region by providing an overly obvious justification to continually perpetuate geopolitical dynamics in the region aimed at transforming the Middle East into a shape more suitable to Western interests.

That the United States invested time, money, and energy into allegedly killing “Jihadi John,” instead of identifying, exposing, and dismantling IS’ logistical networks, including those stretching into NATO territory itself in Turkey, seems to indicate the US is not serious at all about actually fighting or stopping IS, and instead, just interested in appearing to do so.

That CNN thinks this is a story instead of asking just why the US is not trying to get to the bottom of IS’ source of money, supplies, weapons, fighters and political support, tells you that CNN is not interested in journalism, but like Jihadi John himself (selves?) they are nothing more than propagandists attempting to manipulate, not inform the public’s perception.