Category Archives: Corruption

If you are reading this, you might be a conspiracy theorist

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By John Steppling

Source: Off-Guardian

…a permanent modern scenario: apocalypse looms…and it doesn’t occur.”
Susan Sontag, AIDs and its Metaphors

“I should not misuse this opportunity to give you a lecture about, say, logic. I call this a misuse, for to explain a scientific matter to you it would need a course of lectures and not an hour’s paper. Another alternative would have been to give you what’s called a popular scientific lecture, that is a lecture intended to make you believe that you understand a thing which actually you don’t understand, and to gratify what I believe to be one of the lowest desires of modern people, namely the superficial curiosity about the latest discoveries of science. I rejected these alternatives.”
Ludwig Wittgenstein, A Lecture on Ethics

If you’re reading this, then you’ve probably been called a conspiracy theorist. Also you’ve been derided and shamed for questioning the “science” of the Covid debacle.

The idea of science is now a badly corrupted idea. In a nation, today, (the USA) which in educational terms ranks 25th globally in science skills and reading, and well below that in math; all one hears is a clarion call to science. In reading skills the US placed below Malta, Portugal, and right about the same as Kazakhstan.

But in a nation that no longer reads, and *can* no longer read, it is not surprising that knowledge is absorbed via the new hieroglyphics of gifs (interestingly the creator of gifs wanted it pronounced with a soft g the more to sound like a peanut butter brand) and memes.

So-called ‘response memes’ are the new version of conversation, and most register and communicate (sic) confusion. As beer ad marketers know, the state of your brain after consuming a six pack is pretty much the standard target ideal for advertising. And it relays a message that six pack confusion is actually a good and perhaps even sexy state in which to find oneself.

Education is for those with money, those who can afford the proper foundational skills to get into Harvard, MIT, Cal Tech and the Stanford. For everyone else science is Star Trek.

But I digress. The point is that most Americans imagine that they revere science, and they ridicule anyone they think of as unscientific. But they think of it in cult terms, really. Its a religion of sorts. The only people who don’t are those ‘real’ religious zealots, Dominionist and Charismatic Christians (like Mike Pompeo, Mike Pence, Rick Perry, Betsy DeVos et al) who hold positions of enormous power in the US government under the least scientific president in history.

The Christian right doesn’t like any science, ANY science. But for most of that target demographic (the educated mostly white 30%), the cry is to “trust the science”…even the great Greta says to “trust the science”.

The problem is, science is not neutral, its as politicized as media and news and the pronouncements of celebrities.

In May 2020, The Lancet published an article revisiting the 1957 and 1968 Influenza pandemics.

The 1957 outbreak was not caused by a coronavirus—the first human coronavirus would not be discovered until 1965—but by an influenza virus. However, in 1957, no one could be sure that the virus that had been isolated in Hong Kong was a new pandemic strain or simply a descendant of the previous 1918–19 pandemic influenza virus.

The result was that as the UK’s weekly death count mounted, peaking at about 600 in the week ending Oct 17, 1957, there were few hysterical tabloid newspaper headlines and no calls for social distancing. Instead, the news cycle was dominated by the Soviet Union’s launch of Sputnik and the aftermath of the fire at the Windscale nuclear reactor in the UK.

By the time this influenza pandemic — known colloquially at the time as “Asian flu” — had concluded the following April, an estimated 20 000 people in the UK and 80 000 citizens in the USA were dead. Worldwide, the pandemic, sparked by a new H2N2 influenza subtype, would result in more than 1 million deaths.

To date, Covid 19 has not reached the million death marker in the US And yet we are seeing the most draconian lockdowns in modern history, the total suspension of democratic process and a level of hysteria (especially in the U.S. and UK) unprecedented. I wrote about some aspects of this on my blog here, mostly touching on the cultural effects

Allow me to quote The Lancet again.

The subsequent 1968 influenza pandemic — or “Hong Kong flu” or “Mao flu” as some western tabloids dubbed it — would have an even more dramatic impact, killing more than 30 000 individuals in the UK and 100 000 people in the USA, with half the deaths among individuals younger than 65 years — the reverse of COVID-19 deaths in the current pandemic.

Yet, while at the height of the outbreak in December, 1968, The New York Times described the pandemic as “one of the worst in the nation’s history”, there were few school closures and businesses, for the most, continued to operate as normal.

I remember the 68 Hong Kong flu. I was in my last year of high school. The summer after was Woodstock, the ‘summer of love’. Not a lot of social distancing going on. But we are past numbers and statistics having any real meaning. The Covid narrative is now in the realm of allegory.

The media perspective is utterly predictable. Liberal outlets that have the inside track to government are seen to be reinforcing the mainstream story (VOX, Slate, Huff Post, The Guardian and Washington Post). In a recent VOX article the message was only a sociopath would NOT wear a mask and that the ‘science’ was unanimous.

Of course its no such thing. But the message of sites like VOX, or Daily Beast, or Wa Po or the truly reprehensible Guardian, are always going to be to hammer away ‘on message’. The same is true for what passes for moderate news organs like the NY Times, ABC News, The Hill, and BBC. There has been virtually no dissenting opinions expressed in these rags.

All these news outlets are given clear messages by the spin doctors in government, by the White House, and by contacts within the State Department and Pentagon. And by the advertising firms employed by the state (such as Ruder Finn).

“Ad agencies are not in the business of doing science.”
Dr. Arnold S. Relman (Madison Ave. Has Growing Role In the Business of Drug Research, NY Times 2002)

The WHO, the CDC, and most every other NGO or government agency of any size hires advertising firms. The WHO, which is tied to the United Nations, is a reasonably sinister organization, actually.

Just picking up a random publication from the WHO, on what they call ‘the tobacco epidemic’ and you find on page 33 the following chapter heading “Objective: Effective surveillance, monitoring and evaluation systems in place to monitor tobacco use.”

Reading further and all this is really saying is that the populace of any country is best put under surveillance. It’s for their own good, you see.

But back to the science. Here is a small trip down memory lane…

Institutions of medicine, global and national possess no more integrity than your average NGO (Amnesty International, Médecins Sans Frontières, Oxfam et al). And that means not very much.

To understand the nature of institutional corruption one must understand Imperialism. The institutions of Imperialist nations are going to further Imperialist ideology. (see Antonio Gramsci, ideological hegemony). The US is not in the business of helping Americans.

Modern monopoly forms better reflect that scientific knowledge, and its advanced application to production, are concentrated, ultimately, not in physical objects but in human beings and human interaction with those objects. It is monopoly of the labour power of the most highly educated workers, by both imperialist states and Multi National Corporations, that forms the ultimate and most stable base of imperialist reproduction.

– Sam King (Lenin’s theory of imperialism: a defence of its relevance in the 21st century, MLR)

The idea of super-exploitation needs to be conceptually generalised at the necessary level of abstraction and incorporated in the theory of imperialism. Super-exploitation is a specific condition within the capitalist mode of production […] the hidden common essence defining imperialism.

he working class of the oppressed nations/Third World/Global South is systematically paid below the value of labour power of the working class of the oppressor nations/First World/Global North. This is not because the Southern working class produces less value, but because it is more oppressed and more exploited.

– Andy Higginbottom (Structure and Essence in Capital 1, quoted by John Smith Imperialism in the Twenty-First Century)

The US jobless rate just hit 2.1 million. Officially. Making the total something over forty million. Its much higher in reality. Nobody has work. There is no work and we are at the start of a period of massive evictions, foreclosures, and delinquencies — and the homeless population will soon reach Biblical proportions (in some cities, such as Los Angeles, its already Biblical). Will be simply of a magnitude never before seen.

Hence the authoritarian policing of lockdowns in, for example, New Zealand, suggests something like a practice run. The ruling class in western nations knows full well this is coming. And one wonders if it’s not, in fact, a part of the plan (oh here is where someone says conspiracy theory…probably Louis Proyect).

Yes it’s a fucking conspiracy theory. It is a theory based on evidence, however.

Why are the US and UK and a host of other countries deliberately ensuring a massive depression? Because they care about your health? They are worried we all might catch the flu? Has the US ever demonstrated a concern with your health and well being before?

Remember how many discretionary tax dollars go to health care and how much to defense. Conspiracies do occur. The denial of that fact seems to be a hallmark of the pseudo or false left. Does the suspension of democratic process not cause this soft left any problems at all? Look at Sweden, at Belarus…no lockdown and no problem.

It should be noted that there are a great many terrific doctors in the US. Dedicated and brilliant, often. But they are not the system. The system is run for profit.

With about three-fourths of Americans under lockdown, the unintended consequences will be vast. There has been a notable decrease in the number of heart attack and stroke patients arriving at hospitals, presumably because they are afraid of catching the coronavirus or of not finding a hospital bed.

As the economy spirals downward, we can also expect an increase in mental health crises, domestic violence and suicides. While lockdown supporters say that to have a functioning economy, we must have good public health, the reverse is also true: To have good public health, we must have a functioning economy.

– Alex Berezow PhD (Geopolitical Futures, 2020)

Alfred Willener wrote an interesting book in 1970, analysing May 68 in France. He analyses the answers students gave to various questionnaires they responded to. The section regarding science is worth quoting.

‘The scandalous fact is that, for all the means that science has put at our disposal, most people live not much better than in the Middle Ages’. The system benefits from science in the following way: through the atom bomb, through ‘the power of statistical research’, through computers, through the chemical industry being ‘in the hands of the state’, through space research.

‘In the end, you realize’, concludes one reasonably logical reply, ‘that technological progress, which makes economic growth possible, does not satisfy the fundamental needs of man and is used above all to maintain and strengthen the system’.

Lastly, I should like to quote one quite unexpected reply, which forms the extreme point of pessimism: ‘ Everyone is oppressed by science.’

– Alfred Willener (The Action-Image of Society on Cultural Politicization)

I doubt seriously one would get such responses today in any European or North American country. The contemporary indoctrination regards science is acute. And the media abounds in junk science. Click bait science. And this is where most people have their opinions formed for them.

There is a paper put out by one of the founders of the World Economic Forum, Klaus Schwab, called The Great Reset. The conclusion of the book reads…

…at a global level, if viewed in terms of the global population affected, the corona crisis is (so far) one of the least deadly pandemics the world has experienced over the last 2000 years.”

In other words, a mortality of .06% is simply not commensurate with the extreme measures the governments of the world (the West in particular) are taking.

There is no question, none, that those measures, the lockdown, the masks, the distancing, and the attending *diseases of despair*, will kill more people by a factor of ten than the virus itself.

This is not even to begin discussing the psychological harm done, in particular to children. And not just harm to children, but severe harm to the most vulnerable.

What is being internalized by children is three fold. One, there is something inherently sick and contagious about ME. Two, everyone MIGHT be a threat to my health. And three, obey authority, because you don’t want to end up like those smelly homeless people were are trying to hard to avoid.

Children take things personally. They tend to blame themselves. Even in the comparative sanity of Norway, where I reside, children are increasingly anxious about the world. How could they not be? All this for a health risk of .06%.

But it is more than just the decimation of the economy in the US and UK. It is a dismantling of the culture. One in three museums closed because of Covid will not re-open. Ever. Where does all that art go?

Just a guess but probably very wealthy collectors will gobble it up at wholesale prices.

The predictable outcome of these lockdowns, certainly in the US, is a guaranteed minimum income. Very minimum. Restrictions on travel, all freedom of movement in fact, will not soon return to normal. Various forms of surveillance and tracking, as well as health certifications, are the goal of the state.

Also, if this pandemic succeeded so well, with so little resistance, why not have another? And there is another aspect to the SWAT mask police, and that is that western society is becoming alarmingly hypochondriacal. Children are kept out of school for runny noses. If all kids with snotty noses were kept out of class, nobody would get an education.

There is a dire future of two or three generations now developing and maturing with very weak immune systems. So that if a natural mutation takes place one day, from a Corona virus or any other, a genuinely serious pandemic could kill tens of millions.

It is not a speculation that there are people who prosper and even benefit during an economic crisis—as smaller business owners struggle, large corporations and banks benefit from huge government subsidies, giving them more power to buy failing small businesses, for example. And it is a fact that many of those people have enormous economic power to shape the policies that can benefit themselves.

It is not a speculation that they would appreciate having strict measures of control against the people by limiting their freedom of speech, freedom of assembly, and freedom to travel, or by installing means of surveillance, check points and official certifications for activities that might give freedom to the people beyond the capitalist framework.

It is not a speculation that they would benefit from moving our social interactions to the digital realm, which can commodify our activities as marketable data for the advertising industry, insurance industry and any other moneyed social institutions Including education, political institution, legal institution, and financial institution.

Such matters should be seen within the context of the western history being shaped by unelected capitalists with their enormous networks of social institutions.

– Hiroyuki Hamada (Wrong Kind of Green, April 2020)

The collapse of retail is accelerating. This is emerging as a monopolization of retail. Few shops will remain, in fact, except luxury stores in select gated areas. The rest will be online and probably rudimentary. The culture and the economy are being strip-mined and recreated for a select clientele. The collapse of the economy means the collapse of the bottom 90% or so.

The very richest men and corporations on the planet are making huge profits.

And yet, there are precious few voices of dissent to the master narrative in the US. In Norway, the lockdown was about five weeks. But its a sparsely populated country and one hardly noticed it save for the kids being home and not in school. But schools reopened and the Prime Minister actually made a speech apologizing, in effect, for an *unnecessary* lockdown. She had been frightened.

But now, with a mild uptick in positive cases the country is considering stricter limitations on travel. Why?

There is no uptick in deaths, only in positive test results. The fact remains the virus attacks the aged and the already sick. But this is very telling, I think. The Norwegian government doesn’t want to be seen as disobedient. They don’t want to not follow the grand plan provided by western agencies and experts. Even if they seemingly don’t really believe it.

(The saddest aspect is the voice of Dr. Mads Gilbert, a known advocate for Palestinian rights, who has weighed in on the side of fear. Why? I have no idea. But it is worth noting his predictions from March 2020 were staggeringly wrong.)

But clearly the groupthink pressure is powerful and small nations do not want to be singled out for bucking the *science*. There are economic coercions threatened, tacitly, as well. The pressure to conform is huge and it takes a Herculean effort — both individually and as a nation, to resist. And *experts* seem to have a hard time admitting they were wrong.

The science has been consistently wrong from day one.

As I say, this is now allegory. Or fable. There is nothing reasonable or rational in the lockdown measures of the US and UK and NZ. Or anywhere. And this is not even to touch upon the criminality of the Gates Foundation and Bill Gates buying public influence and visibility. Not trained in any medical discipline, Gates has somehow made himself one of the faces of the pandemic.

And to deconstruct Gates’ language is to find a disturbing quality of authoritarian hubris. Gates utters declarations as if he were God speaking to his flock. All from a man who has done little save steal from his partners and exploit the poor of India and Africa. One of the most striking aspects of this whole last few months has been the enormous and coordinated effort the Gates machine has put into rehabilitating his image.

If you google “Crimes of the Gates Foundation” for example, you will get ten different fact-checkers officially denying any crimes and another half dozen articles ridiculing those who question Gates motives, his profit from vaccines, or even his alignment with eugenicists (depopulation adherents)– all are derided as, yes, conspiracy theorists.

If you dare to question the rushing of an untested vaccine you are called an anti-vaxxer.

My children are vaccinated. I just don’t like the idea of a hurried untested vaccine produced for a virus that needs no vaccine. And one promoted by a creepy millionaire.

But clearly the Gates charm offensive is in overdrive. The pastel cardigan is everywhere. And yet, his favorable rating in recent surveys is around 56%. That is actually not very high given the amount of self-promotion involved. It’s better than Mark Zuckerberg and Joe Biden, though. Gates is not likeable. No amount of spin can change that.

The final factor to note is the Trump effect. Many liberals would literally rather see dead in the street if it meant discrediting Trump. It is no longer quite a zero sum game, though. But overall the hatred of Trump is now at a religious level, too.

And behold, the opposition is Joe Biden and Kamala Harris. If you want a window in the black heart of Biden, watch and/or listen to his testimony around the Waco inferno. The inherent sadism and lack of humanity is glaringly apparent.

As for Kamala Harris:

As a San Francisco social worker, I sat on the school district committee that met with families of chronically truant students. Once, when we asked a student why he didn’t go to school, he said there was too much police tape and shootings at his school bus stop.

Harris, as CA Attorney General, was putting parents/caregivers in jail if their child was chronically truant. Also as Attorney General, she denied a DNA test to Kevin Cooper, a very likely innocent man who came within hours of execution in 2004.

– Riva Enteen (Counterpunch Aug. 2020)

These are the servants of capital.

The left should be emphasising the economic aspect of lockdown because it is the working class who are the principal victims of lockdown.”
Phil Shannon (Lockdown Skeptics, June 2020)

A Downing street tweet today:

We’re putting tougher measures in place to target serious breaches of coronavirus restrictions. Fines for not wearing a face-covering will double for repeat offences, up to £3,200.”

This is a class-based assault. The wealthy will not be fined for not wearing a face-covering on their private beaches, or dinner parties at the yacht club.

Saturday Matinee: ShadowGate

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Who is Millie Weaver, why was she arrested ahead of ‘Shadow Gate’ release? Internet helps raise $13K of $20K

The arrest comes in the wake of her documentary release on the topic of the US ‘shadow government’ which was all set to be screened on YouTube

By Jyotsna Basotia

Source: Meaww.com

In a shocking piece of news, investigative reporter Millie Weaver and her husband were arrested at their home. The arrest comes in the wake of her documentary release on the topic of the US “shadow government” which was all set to be screened on YouTube as she had teased in her last tweet. While there seems to be no confirmation as to why she was taken by the officers, a string of speculative theories seem to have popped up on social media.

Born on February 6, 1991, in San Bernardino, California, United States, Weaver was an aspiring actress and singer who went on to be a political activist and reporter. She is a mother to a four-year-old son and a nine-month-old daughter, as per a report from YHStars.com. Not just that, the same report says that the 29-year-old was named as one Newsmax’s “30 Most Influential Republicans Under 30.”

On August 11, 2020, she posted the trailer with the caption: “The ObamaGate scandal only scratches the surface. This may the biggest whistleblowing event to date. Official Trailer – Shadow Gate.” After the shocking news, the tweet went viral with over 7,000 retweets and 8,000 likes in a few hours. The narration in the trailer says, “Both parties are equally guilty in what should turn out to be an even bigger scandal. Shadow Gate the tactical and operational role the shadow government played behind the scenes carrying out the coup against President Trump.” The trailer also detailed that the documentary would detail who the real puppetmasters and string-pullers are.

As per a USSA News report, her documentary ‘Shadow Gate’ was all set to tell the tale of two whistleblowers who claim that a secretive network of government and military insiders have ‘backdoor’ access to intelligence agencies and information on elite personalities including politicians which would be used to blackmail powerful people. Not just that, the film was also set to show how military psychological warfare programs are used against people through mainstream corporate media and social media.

According to the same report, one of the whistleblowers in the film named Tore was recently suspended by Twitter. When reporter Spiro Skouras tried getting in touch with the Portage County Sheriff’s Office, they confirmed Weaver is in their custody and said that she was served a secret indictment. Currently, she is being charged for tampering with evidence, obstruction of justice, and domestic violence. As per the Sheriff’s Office, she is being held without bond and will remain in custody over the weekend until she appears before a judge on Monday morning, August 17.

The news first surfaced on Twitter when Weaver posted a video of officers knocking her door and announcing her arrest in front of crying children. When she asked the reason, she was told that a “Grand Jury indicted her for burglary”. The one-minute 50-second clip soon made its way to Twitter and was posted by several social media users.

https://twitter.com/MarkDice/status/1294352410693967872

Cassandra Fairbanks shared a fundraiser on Twitter and tried to seek help from people for her release. The GoFundMe page reads: “Millie Weaver, the popular independent journalist, was arrested today in a shocking raid. No information is publicly available, and in cell phone footage of the arrest, Millie repeatedly asks what the arrest is for, with police providing no answers. Whatever the case, we know Millie will need financial help — to pay for a lawyer and other expenses.”

It further adds: “I have just spoken with a work colleague of Millie, and with her friend Tore, who have given me their approval to launch this fundraiser. They confirm that it will not conflict with any other actions to help Millie. All proceeds will be transferred to Millie or her designate as soon as she’s out of custody.” At the time of writing, $13,880 has been raised of $20,000 goal and in an update, the organizer Ezra Levant posted: “I have been in touch with Millie’s friend Tore about connecting with legal counsel. I won’t disclose anything confidential, but it is my goal to help support any legal effort, including (if applicable) paying bail.”

Wild theories started to spiral out of nowhere, many of which said that she was arrested for allegedly obtaining leaked government documents. However, there is no confirmed report or news and MEA World Wide cannot independently verify these claims or allegations.

America’s Death March

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By Chris Hedges

Source: Mint Press News

The terminal decline of the United States will not be solved by elections. The political rot and depravity will continue to eat away at the soul of the nation, spawning what anthropologists call crisis cults — movements led by demagogues that prey on an unbearable psychological and financial distress. These crisis cults, already well established among followers of the Christian Right and Donald Trump, peddle magical thinking and an infantilism that promises — in exchange for all autonomy — prosperity, a return to a mythical past, order and security. The dark yearnings among the white working class for vengeance and moral renewal through violence, the unchecked greed and corruption of the corporate oligarchs and billionaires who manage our failed democracy, which has already instituted wholesale government surveillance and revoked most civil liberties, are part of the twisted pathologies that infect all civilizations sputtering towards oblivion. I witnessed the deaths of other nations during the collapse of the communist regimes in Eastern Europe and later in the former Yugoslavia. I have smelled this stench before.

The removal of Trump from office will only exacerbate the lust for racist violence he incites and the intoxicating elixir of white nationalism. The ruling elites, who first built a mafia economy and then built a mafia state, will continue under Biden, as they did under Trump, Barack Obama, George W. Bush, Bill Clinton and Ronald Reagan, to wantonly pillage and loot. The militarized police will not stop their lethal rampages in poor neighborhoods. The endless wars will not end. The bloated military budget will not be reduced. The world’s largest prison population will remain a stain upon the country. The manufacturing jobs shipped overseas will not return and the social inequality will grow. The for-profit health care system will gouge the public and price millions more out of the health care system. The language of hate and bigotry will be normalized as the primary form of communication. Internal enemies, including Muslims, immigrants and dissidents, will be defamed and attacked. The hypermasculinity that compensates for feelings of impotence will intensify. It will direct its venom towards women and all who fail to conform to rigid male stereotypes, especially artists, LGBTQ people and intellectuals. Lies, conspiracy theories, trivia and fake news — what Hannah Arendt called “nihilistic relativism” — will still dominate the airwaves and social media, mocking verifiable fact and truth. The ecocide, which presages the extinction of the human species and most other life forms, will barrel unabated towards its apocalyptic conclusion.

“We run heedlessly into the abyss after putting something in front of us to stop us seeing it,” Pascal wrote.

The worse it gets — and it will get worse as the pandemic hits us in wave after deadly wave with an estimated 300,000 Americans dead by December and possibly 400,000 by January — the more desperate the nation will become. Tens of millions of people will be thrown into destitution, evicted from their homes and abandoned. Social collapse, as Peter Drucker observed in Weimar Germany in the 1930s, brings with it a loss of faith in ruling institutions and ruling ideologies. With no apparent answers or solutions to mounting chaos and catastrophe — and Biden and the Democratic Party have already precluded the kind of New Deal programs and assault on oligarchic power that saved us during the Great Depression — demagogues and charlatans need only denounce all institutions, all politicians, and all political and social conventions while conjuring up hosts of phantom enemies. Drucker saw that Nazism succeeded not because people believed in its fantastic promises, but in spite of them. Nazi absurdities, he pointed out, had been “witnessed by a hostile press, a hostile radio, a hostile cinema, a hostile church, and a hostile government which untiringly pointed out the Nazi lies, the Nazi inconsistency, the unattainability of their promises, and the dangers and folly of their course.” Nobody, he noted, “would have been a Nazi if rational belief in the Nazi promises had been a prerequisite.” The poet, playwright and socialist revolutionary Ernst Toller, who was forced into exile and stripped of his citizenship when the Nazis took power in 1933, wrote much the same in his autobiography: “The people are tired of reason, tired of thought and reflection. They ask, what has reason done in the last few years, what good have insights and knowledge done us.” After Toller committed suicide in 1939, W.H. Auden in his poem “In Memory of Ernst Toller” wrote:

We are lived by powers we pretend to understand:
They arrange our loves; it is they who direct at the end
The enemy bullet, the sickness, or even our hand.

The poor, the vulnerable, those who are not white or not Christian, those who are undocumented or who do not mindlessly repeat the cant of a perverted Christian nationalism, will be offered up in a crisis to the god of death, a familiar form of human sacrifice that plagues sick societies. Once these enemies are purged from the nation, we are promised, America will recover its lost glory, except that once one enemy is obliterated another takes its place. Crisis cults require a steady escalation of conflict. This is what made the war in the former Yugoslavia inevitable. Once one stage of conflict reaches a crescendo it loses its efficacy. It must be replaced by ever more brutal and deadly confrontations. The intoxication and addiction to greater and greater levels of violence to purge the society of evil led to genocide in Germany and the former Yugoslavia. We are not immune. It is what Ernst Jünger called a “feast of death.”

These crisis cults are, as Drucker understood, irrational and schizophrenic. They have no coherent ideology. They turn morality upside down. They appeal exclusively to emotions. Burlesque and celebrity culture become politics. Depravity becomes morality. Atrocities and murder become heroism. Crime and fraud become justice. Greed and nepotism become civic virtues. What these cults stand for today, they condemn tomorrow. At the height of the reign of terror on May 6, 1794 during the French Revolution, Maximilien Robespierre announced that the Committee for Public Safety now recognized the existence of God. The French revolutionaries, fanatical atheists who had desecrated churches and confiscated church property, murdered hundreds of priests and forced another 30,000 into exile, instantly reversed themselves to send to the guillotine those who disparaged religion. In the end, exhausted by the moral confusion and internal contradictions, these crisis cults yearn for self-annihilation.

The French sociologist Emile Durkheim in his classic book “On Suicide” found that when social bonds are shattered, when a population no longer feels it has a place or meaning in a society, personal and collective acts of self-destruction proliferate. Societies are held together by a web of social bonds that give individuals a sense of being part of a collective and engaged in a project larger than the self. This collective expresses itself through rituals, such as elections and democratic participation or an appeal to patriotism, and shared national beliefs. The bonds provide meaning, a sense of purpose, status and dignity. They offer psychological protection from impending mortality and the meaninglessness that comes with being isolated and alone. The breaking of these bonds plunges individuals into deep psychological distress. Durkheim called this state of hopelessness and despair anomie, which he defined as “ruleless-ness.”

Ruleless-ness means the norms that govern a society and create a sense of organic solidarity no longer function. The belief, for example, that if we work hard, obey the law and get a good education we can achieve stable employment, social status and mobility along with financial security becomes a lie. The old rules, imperfect and often untrue for poor people of color, nevertheless were not a complete fiction in the United States. They offered some Americans — especially those from the white working and middle class — modest social and economic advancement. The disintegration of these bonds has unleashed a widespread malaise Durkheim would have recognized. The self-destructive pathologies that plague the United States — opioid addiction, gambling, suicide, sexual sadism, hate groups and mass shootings — are products of this anomie. So is our political dysfunction. My book, “America: The Farewell Tour,” is an examination of these pathologies and the widespread anomie that defines American society.

The economic structures, even before the pandemic, were reconfigured to mock faith in a meritocracy and the belief that hard work leads to a productive and valued role in society. American productivity, as The New York Times pointed out, has increased 77 percent since 1973 but hourly pay has grown only 12 percent. If the federal minimum wage was attached to productivity, the newspaper wrote, it would be more than $20 an hour now, not $7.25. Some 41.7 million workers, a third of the workforce, earn less than $12 an hour, and most of them do not have access to employer-sponsored health insurance. A decade after the 2008 financial meltdown, the Times wrote, the average middle class family’s net worth is more than $40,000 below what it was in 2007. The net worth of black families is down 40 percent, and for Latino families the figure has dropped 46 percent. Some four million evictions are filed each year. One in four tenant households spends about half its pretax income on rent. Each night some 200,000 people sleep in their cars, on streets or under bridges. And these stark figures represent the good times Biden and the Democratic Party leaders promise to restore. Now, with real unemployment probably close to 20 percent — the official figure of 10 percent excludes those furloughed or those who have stopped looking for work — some 40 million people are at risk of being evicted by the end of the year. An estimated 27 million people are expected to lose their health insurance. Banks are stockpiling reserves of cash to cope with the expected wave of bankruptcies and defaults on mortgages, student loans, car loans, personal loans and credit card debt. The ruleless-ness and anomie that defines the lives of tens of millions of Americans was orchestrated by the two ruling parties in the service of a corporate oligarchy. If we do not address this anomie, if we do not restore the social bonds shattered by predatory corporate capitalism, the decay will accelerate.
This dark human pathology is as old as civilization itself, repeated in varying forms in the twilight of ancient Greece and Rome, the finale of the Ottoman and Austro-Hungarian empires, revolutionary France, the Weimar Republic and the former Yugoslavia.

The social inequality that characterizes all states and civilizations seized by a tiny and corrupt cabal — in our case corporate — leads to an inchoate desire by huge segments of the population to destroy. The ethnic nationalists Slobodan Milošević, Franjo Tudjman, Radovan Karadžić and Alija Izetbegović in the former Yugoslavia assumed power in a similar period of economic chaos and political stagnation. Yugoslavs by 1991 were suffering from widespread unemployment and had seen their real incomes reduced by half from what they had been a generation before. These nationalist demagogues sanctified their followers as righteous victims stalked by an array of elusive enemies. They spoke in the language of vengeance and violence, leading, as it always does, to actual violence. They trafficked in historical myth, deifying the past exploits of their race or ethnicity in a perverse kind of ancestor worship, a mechanism to give to those who suffered from anomie, who had lost their identity, dignity and self-worth, a new, glorious identity as part of a master race. When I walked through Montgomery, Alabama, a city where half of the population is African-American, with the civil rights attorney Bryan Stevenson a few years ago, he pointed out the numerous Confederate memorials, noting that most had been put up in the last decade. “This,” I told him, “is exactly what happened in Yugoslavia.”

A hyper-nationalism always infects a dying civilization. It feeds the collective self-worship. This hyper-nationalism celebrates the supposedly unique virtues of the race or the national group. It strips all who are outside the closed circle of worth and humanity. The world instantly becomes understandable, a black and white tableau of them and us. These tragic moments in history see people fall into collective insanity. They suspend thought, especially self-critical thought. None of this is going away in November, in fact it will get worse.

Joe Biden, a shallow, political hack devoid of fixed beliefs or intellectual depth, is an expression of the nostalgia of a ruling class that yearns to return to the pantomime of democracy. They want to restore the decorum and civic religion that makes the presidency a form of monarchy and sacralizes the organs of state power. Donald Trump’s vulgarity and ineptitude is an embarrassment to the architects of empire. He has ripped back the veil that covered our failed democracy. But no matter how hard the elites try this veil cannot be restored. The mask is off. The façade is gone. Biden cannot bring it back.

Political, economic and social dysfunction define the American empire. Our staggering inability to contain the pandemic, which now infects over 5 million Americans, and the failure to cope with the economic fallout the pandemic has caused, has exposed the American capitalist model as bankrupt. It has freed the world, dominated by the United States for seven decades, to look at other social and political systems that serve the common good rather than corporate greed. The diminished stature of the United States, even among our European allies, brings with it the hope for new forms of government and new forms of power.

It is up to us to abolish the American kleptocracy. It is up to us to mount sustained acts of mass civil disobedience to bring down the empire. It poisons the world as it poisons us. If we mobilize to build an open society, we hold out the possibility of beating back these crisis cults as well as slowing and disrupting the march towards ecocide. This requires us to acknowledge, like those protesting in the streets of Beirut, that our kleptocracy, like Lebanon’s, is incapable of being salvaged. The American system of inverted totalitarianism, as the political philosopher Sheldon Wolin called it, must be eradicated if we are to wrest back our democracy and save ourselves from mass extinction. We need to echo the chants by the crowds in Lebanon calling for the wholesale removal of its ruling class — kulyan-yani-kulyan — everyone means everyone.

A Bigger Picture

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Baluchitherium. Gone but not forgotten.

By James Howard Kunstler

Source: Kunstler.com

The Covid-19 virus itself didn’t run the United States into a ditch but it exposed the weakness and rot in the nation’s drive-train, and now all of us passengers on that disabled bus must decide whether to stay helplessly inside the smoldering wreckage arguing over who’s to blame, or begin a long, uncertain march down the road on our own two feet to a place of new arrangements.

In 1918, the country was lashed by a far deadlier pandemic disease at the same time it was fighting a world war, and daily life barely missed a step. The economy then was emphatically one of production, not the mere consumption of things made elsewhere in the world (exchanged for US IOUs), nor of tanning parlors, nail salons, streaming services, and Pilates studios. The economy was a mix of large, medium, and small enterprises, not just floundering giants, especially in the retail commerce of goods. We lived distributed in towns, cities not-yet-overgrown, and a distinctly rural landscape devoted to rural activities — not the vast demolition derby of entropic suburbia that has no future as a human habitat. Banking was only five percent of the economy, not the bloated matrix of rackets now swollen to more than forty percent of so-called GDP. Government at the federal and state levels was miniscule compared to the suffocating, parasitic leviathan it is now.

What happened? Like Hemingway’s old quip about a man going broke slowly and then all-at-once, we allowed everything in American life to creep into hapless giantism too cumbersome to adapt to new conditions, and suddenly conditions have changed. And now it’s all coming apart: the dying chain stores, the giant zombie companies that can only exist by borrowing money to buy back their own stocks, the auto-makers who have run out of lending schemes for non-creditworthy customers, the shale oil fracking companies that could never make a red cent, the agri-biz farmers grown morbidly obese on a diet of credit and government subsidies (just like their end-customers grew obese on engineered snack-foods), the Wall Street lords of financialization hypothecating fortunes by leveraging the stripped assets of everything not nailed down from sea to shining sea, the swelling underclass conditioned to helplessness, addiction, and vice, the inescapable ambient tyranny of media hype, propaganda, and disinformation, and, of course, the catastrophe that government has become.

Get this: none of these things now wobbling and staggering will be resurrected. They’re all going extinct, like the Baluchitherium of the Oligocene. To keep propping them up — as the Federal Reserve sedulously props up financial markets — will only promote the illusion that we don’t have to move on and conduct daily human life differently. A worldwide contraction was already underway before Covid-19 stepped onstage. The contraction was sending a very loud and clear message: gigantism went as far as it could go and now it’s up to the smaller and nimbler to carry on. Beware the promises of the sclerotic authorities asking you to remain in thrall to them — and dependent on them.

Expect these authorities to screw up even the next big exercise in their own franchise: the 2020 election. It will be the climax to a season of political hysteria and will complete the chapter of our history that left us on that smoldering big bus in the ditch. The scramble away from that disaster scene will be frightful and desperate. No matter who ends up in control of the government — or pretends to be — the same forces of contraction and decomplexifying will actually rule and you will have to act accordingly.

Many people will seek to escape the places they live now to find new homes and livelihoods elsewhere. These demographic movements are already underway. New York City is hemorrhaging much of its tax base as the wealthy flee, Chicago too, and the whole state of California. These places will be overwhelmed by functional bankruptcy, even if legal legerdemain allows them to avoid declaring it. Other states, counties and municipalities — including many suburban blobs — will also founder, meaning all the usual support systems and safety nets vanish. Many supply chains will break. Money may either be scarce or worthless, which are two ways of going broke.

Right now, start planning where you might go and what you can do. The turmoil will be filled with opportunity to find ways to be useful to other people, to devise work-arounds for ruptured systems and relationships, in getting food to people, making things they need, distributing them, fixing things that are broken where possible, and moving people and stuff from point A to point B. There will be plenty of work for people who are willing to do it. Keep in mind that it’s entirely up to you to make good choices.

Don’t despair, and if you find yourself veering toward it, get over yourself. It’s just part of becoming stronger than you thought you could be,  and the times will require it of you anyway. The offices that gave out brownie points for avouched victimhood will also be shutting down. Won’t that be a relief? Welcome to the joyful illumination that life is difficult for everybody. Who is ready for this epic journey?

The Free Market Is A Failure

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By TheHipcrimeVocab

Sorry for the deliberately click-bait-y headline, but I think this message is important to get out there.

In my discussions few months back on What is Neoliberalism, I noted that a core element of neoliberal philosophy is that markets are the only efficient, effective and rational way to distribute goods and services.

Neoliberals profess the idea that only competitive markets can allocate “scarce” resources efficiently, and that it is only such “free” markets that can lift people out of poverty and deliver broad prosperity. They pound it into our heads constantly.

Yet the Covid-19 crisis has illustrated spectacular and pervasive failures of such “free” markets all over the globe, and especially in the U.S. Instead of fairness or efficiency, we see systemic failure in every market we look: the food industry, the medical industry, the retail industry, the employment market. Resources are being destroyed and misallocated on a massive scale

Let’s start with the food industry, because food is the most important thing (nine means from anarchy, and all that). Thousands and thousands of pigs are being slaughtered, their meat left to rot, eaten by no-one, regardless of the forces of supply and demand:

The United States faces a major meat shortage due to virus infections at processing plants. It means millions of pigs could be put down without ever making it to table…

Boerboom, a third-generation hog farmer, is just one of the tens of thousands of US pork producers who are facing a stark reality: although demand for their products is high in the nation’s grocery stores, they may have to euthanise and dispose of millions of pigs due to a breakdown in the American food supply chain.

Meat shortage leaves US farmers with ‘mind-blowing’ choice (BBC)

Potatoes are sitting in Belgian warehouses and left to rot, only two short years after a drought threatened to produce a severe shortage:

Belgium: Lighthearted campaign to ‘eat more fries’ aims to lift heavy load (DW)

Meanwhile, dairy farmers in the U.S. heartland are dumping milk into the ground, to be drunk by no one.

Cows don’t shut off: Why this farmer had to dump 30,000 gallons of milk (USA Today)

In fact, the whole food situation is rather ugly, as this piece from The Guardian summarizes:

This March and April, even as an astounding 30 million Americans plunged into unemployment and food bank needs soared, farmers across the US destroyed heartbreaking amounts of food to stem mounting financial losses.

In scenes reminiscent of the Great Depression, dairy farmers dumped lakes of fresh cow’s milk (3.7m gallons a day in early April, now about 1.5 million per day), hog and chicken farmers aborted piglets and euthanized hens by the thousands, and crop growers plowed acres of vegetables into the ground as the nation’s brittle and anarchic food supply chain began to snap and crumble.

After delays and reports of concealing worker complaints, meatpacking plants that slaughter and process hundreds of thousands of animals a day ground to a halt as coronavirus cases spread like wildfire among workers packed tightly together on dizzyingly fast assembly lines.

Meanwhile, immigrant farmworkers toiled in the eye of the coronavirus storm, working and living in crowded dangerous conditions at poverty wages; at one Washington state orchard, half the workers tested positive for Covid-19. Yet many of these hardest working of Americans were deprived of economic relief, as they are undocumented. Advocates report more farmworkers showing up at food banks – and some unable to access food aid because they can’t afford the gas to get there.

None of this is acceptable or necessary and it’s not just about Covid-19, it’s also illustrative of a deeply deregulated corporate capitalism. America’s food system meltdown amid the pandemic has been long-developing, and a primary cause is decades of corporate centralization and a chaotic array of policies designed to prop up agribusiness profits at any cost.

Farmers are destroying mountains of food. Here’s what to do about it (Guardian)

That doesn’t sound very “efficient” to me, does it? How about you? Free market fundamentalists, care to weigh in?

Meanwhile, hospitals in the United States, which one would think are the most important thing to keep open during a pandemic, are actually closing across the country. These are the very things you want most to be open! Why is this happening? Because health care in the U.S. is a profit-driven enterprise that “competes” in the free market. Because elective procedures—their cash cow—have either been suspended or postponed. U.S. hospitals are closing because they are dependent upon these elective procedures to shore up their profits, and markets rely on profits.

As the deadly virus has spread beyond urban hotspots, many more small hospitals across the country are on the verge of financial ruin as they’ve been forced to cancel elective procedures, one of the few dependable sources of revenue. Williamson Memorial and similar facilities have been struggling since long before the pandemic — at least 170 rural hospitals have shut down since 2005, according to University of North Carolina research on rural hospital closures.

But even as hospitals in cities like New York City and Detroit have been deluged with coronavirus patients, many rural facilities now have the opposite problem: their beds are near-empty, their operating rooms are silent, and they’re bleeding cash.

More than 100 hospitals and hospital systems around the country have already furloughed tens of thousands of employees, according to a tally by industry news outlet Becker’s Hospital Review. They’ve sent home nurses and support staffers who would be deemed essential under state stay-home orders.

Rural hospitals are facing financial ruin and furloughing staff during the coronavirus pandemic (CNN)

And how about allocating labor via impersonal markets? How’s that going? Well, not so well. The workers with the skills most desperately needed on the front lines during the crisis are taking pay cuts and getting laid off left and right. Instead of contributing, they are sitting at home, unable to work even if they wanted to:

At a time when medical professionals are putting their lives at risk, tens of thousands of doctors in the United States are taking large pay cuts. And even as some parts of the US are talking of desperate shortages in nursing staff, elsewhere in the country many nurses are being told to stay at home without pay.

That is because American healthcare companies are looking to cut costs as they struggle to generate revenue during the coronavirus crisis.

“Nurses are being called heroes,” Mariya Buxton says, clearly upset. “But I just really don’t feel like a hero right now because I’m not doing my part.”

Ms Buxton is a paediatric nurse in St Paul, Minnesota, but has been asked to stay at home.

At the unit at which Ms Buxton worked, and at hospitals across most of the country, medical procedures that are not deemed to be urgent have been stopped. That has meant a massive loss of income.

Coronavirus: Why so many US nurses are out of work (BBC)

It’s an ironic twist as the coronavirus pandemic sweeps the nation: The very workers tasked with treating those afflicted with the virus are losing work in droves.

Emergency room visits are down. Non-urgent surgical procedures have largely been put on hold. Health care spending fell 18% in the first three months of the year. And 1.4 million health care workers lost their jobs in April, a sharp increase from the 42,000 reported in March, according to the Labor Department. Nearly 135,000 of the April losses were in hospitals.

As Hospitals Lose Revenue, More Than A Million Health Care Workers Lose Jobs (NPR)

So it doesn’t seem like “free and open” markets are doing so well with either health care or labor.

Meanwhile, U.S. states are competing against each other for desperately needed PPE equipment, bidding up the price and preventing scarce resources from going to where they are most badly needed, which would naturally be where Covid-19 has struck the hardest:

As coronavirus testing expands and more cases of infection are being identified, doctors, nurses and other healthcare workers are scrambling to find enough medical supplies to replenish their dwindling supply.

But state and local governments across the United States are vying to purchase the same equipment, creating a competitive market for those materials that drives up prices for everyone.

“A system that’s based on state and local governments looking out for themselves and competing with other state and local governments across the nation isn’t sustainable,” said John Cohen, an ABC News contributor and former acting Undersecretary of the Department of Homeland Security, “and if left to continue, we’ll certainly exacerbate the public health crisis we’re facing.”

“There’s a very real possibility,” he added, “that those state and local governments that have the most critical need won’t get the equipment they need.”

Competition among state, local governments creates bidding war for medical equipment (ABC News)

Yet neoliberals always tell us how important “competition” is in every arena of life.

Failure, failure, failure! Everywhere we look, we see failure. Pervasive, systematic failure. Resources going unused. Surpluses of food being dumped even while people go hungry and line up at food banks. Workers with necessary skills sitting at home, twiddling their thumbs. Other workers unable to even earn a living to support themselves and their families, no matter how badly they want to work. Masks and protective equipment NOT going to where they are most needed, their costs inflating, befitting no one except profiteers even as people die.

Tell me again about how the market is “efficient” at distributing resources. Tell me again about how central planning inevitably results in wasted resources, surfeits and shortages.

And here is the big, bold, underscored point:

The free-marketeers want to trumpet the market’s successes, but they don’t want to own its failures.

Free-market boosters always want to talk about the wonderful benefits of markets. How they allow multiple people to coordinate their activities across wide variations of space and time. How they allow knowledge to be distributed among many different actors. How they favor tacit knowledge that a single entity could not possess. Libraries of encomiums have been written celebrating the virtues of the “free” market. You know their names: The Provisioning of Paris, Economics in One Lesson, Free to Choose, I Pencil, and all of that. Much of what passes for economic “science” is simply cheerleading for markets– the bigger, freer and less-regulated the better.

Okay, fair enough.

But how about market failures? Why don’t they ever talk about that? Because if you read the economics books I cited above, you would come away with the idea that there are no market failures! That, in fact, there is no such thing. That markets, in effect, cannot fail!

If you want to own the successes, you need to own the failures.

Oh, they love, love, love to talk about central planning’s “failures”. They can’t get enough of that. They love to talk about empty shelves in the Soviet Union, long lines at supermarkets, the lack of toilet paper in Venezuela (amusingly, now a problem throughout the capitalist world), and the allegedly long waiting times in “socialized medicine” countries. We are constantly subjected to that drumbeat day after day after day. It’s part of every economics 101 course. Central planning doesn’t work. Central planning is inefficient. Central planning is “tyranny.”

But what about all that stuff I cited above?

Where are all the free-market fundamentalists now?

What is their excuse?

They’ll use special pleading. They’ll argue that it’s exceptional circumstances. That no one could have foreseen a “black swan” event like the global Covid-19 pandemic (despite numerous experts warning about it for years). They’ll tell us that markets work just fine under “normal” circumstances. They’ll say we cannot pass any kind of judgement on the failings of markets during such an unusual event.

Here’s why that argument is bullshit:

Pandemics are a real, and recurring phenomenon in human history. We’ve been incredibly fortunate that we’ve been in rare and atypical hundred-year period from 1918-1919 to today without a global pandemic or novel disease we couldn’t quickly contain and/or eradicate.

But pandemics are always—and always have always been—a societal threat, even if we’ve forgotten that fact. And the experts tell us that there will be a lot more of them in our future, with population overshoot, environmental destruction, encroachment on formerly unoccupied lands and climate change proceeding apace. What that means is this:

If your economic system can’t function properly during a pandemic, then your economic system is shit.

If your economic system only works when conditions are ideal, in fact depends upon conditions being ideal, then, your economic system doesn’t really work at all. If something like a pandemic causes it to seize up and fail, then your economic system is poorly designed and doesn’t work very well. Not only do the free markets graphed on economists’ chalkboards not exist in anywhere the real world, they apparently rely on a blissful Eden-like Arcadia to function as intended—a situation any causal glance at human history tells us is highly unusual. Any disruption and they fall like dominoes. They are about as resilient as tissue paper.

And the stresses are only going to get worse in the years ahead, with climate change making some areas uninhabitably hot, while other places are submerged under rising sea levels. And that’s before we get to the typical natural disasters like volcanic eruptions, tsunamis and earthquakes. And there will be new novel plant diseases as well, unfolding against the increasing resistance of germs to antibiotics.

Will the free market fundamentalists and libertarian market cheerleaders acknowledge this???

Don’t hold your breath.

No, they will continue to lionize “private initiative” at every opportunity, while completely ignoring the stuff I opened this post with. They’ll sweep it under the rug or, more likely, simply handwave it away. They’ll continue to say that we need to scale back government regulation and interference and let the invisible hand sort it all out.

Because discipline of modern economics as practiced today is not a science. It may not even rise to the level of a pseudoscience. It’s PR for laissez-faire capitalism.

Of course, we’ve had market failures before. They occurred all throughout the nineteenth century and during Great Depression, for example. These are well-documented. But many of the things that came out of those bygone market failures to prevent or mitigate them have been systematically and deliberately dismantled over the past generation due to rise of neoliberalism.

And now we’re paying the price.

Karl Polanyi made an important distinction between markets and Market Society. Markets are where people come together to buy, sell, and exchange surplus goods. These have existed throughout history. They are tangential to society; embedded in something larger than it. Such markets can be shut down without causing an existential threat to civilization.

But Market Society is dependent upon impersonal forces of supply and demand and functioning markets for absolutely everything in the society, from jobs to food to health care. Everything is oriented around maximizing private profits, and not human needs. Markets failing to function adequately lead to unemployment, sickness, starvation and death. Shutting them down is an existential threat to civilization.

As Dmitry Orlov wrote in his best-known work, the Russians survived the collapse of the Soviet Union precisely because they didn’t rely on the Market.

Naturalizing markets in this way is an abdication of both causal and moral responsibility for famines, a way to avoid reality and the ethical consequences for people in a position to change things. Markets are not given; they are predicated on a host of laws and social conventions that can, if the need arises, be changed. It makes no sense for American farmers to destroy produce they can’t sell while food banks are struggling to keep up with demand. This kind of thinking is a way for powerful people to outsource ethical choices to the market, but the market has no conscience.

Famine Is a Choice (Slate)

Now, to be clear I’m not necessarily making an argument for or against central planning as opposed to markets. That’s a different discussion.

But my core point is simply this: you cannot discuss market successes without discussing market failures. To do so is intellectually dishonest, disingenuous, and not to mention incredibly dangerous and irresponsible. If economics were a real science, instead of just PR for capitalism, it would take a look at the things I described above, and figure out ways they could have been avoided, regardless of any preconceived ideology or assumptions about the “right” way to arrange a society, or assumptions about how things “should” work. It would seek out ways for society to become, in Nassim Taleb’s terminology, “antifragile.”

But don’t hold your breath for that, either.

Meet BlackRock, the New Great Vampire Squid

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By Ellen Brown

Source: Web of Debt

BlackRock is a global financial giant with customers in 100 countries and its tentacles in major asset classes all over the world; and it now manages the spigots to trillions of bailout dollars from the Federal Reserve. The fate of a large portion of the country’s corporations has been put in the hands of a megalithic private entity with the private capitalist mandate to make as much money as possible for its owners and investors; and that is what it has proceeded to do.

To most people, if they are familiar with it at all, BlackRock is an asset manager that helps pension funds and retirees manage their savings through “passive” investments that track the stock market. But working behind the scenes, it is much more than that. BlackRock has been called “the most powerful institution in the financial system,” “the most powerful company in the world” and the “secret power.” It is the world’s largest asset manager and “shadow bank,” larger than the world’s largest bank (which is in China), with over $7 trillion in assets under direct management  and another $20 trillion managed through its Aladdin risk-monitoring software. BlackRock has also been called “the fourth branch of government” and “almost a shadow government”, but no part of it actually belongs to the government. Despite its size and global power, BlackRock is not even regulated as a “Systemically Important Financial Institution” under the Dodd-Frank Act, thanks to pressure from its CEO Larry Fink, who has long had “cozy” relationships with government officials.

BlackRock’s strategic importance and political weight were evident when four BlackRock executives, led by former Swiss National Bank head Philipp Hildebrand, presented a proposal at the annual meeting of central bankers in Jackson Hole, Wyoming, in August 2019 for an economic reset that was actually put into effect in March 2020. Acknowledging that central bankers were running out of ammunition for controlling the money supply and the economy, the BlackRock group argued that it was time for the central bank to abandon its long-vaunted independence and join monetary policy (the usual province of the central bank) with fiscal policy (the usual province of the legislature). They proposed that the central bank maintain a “Standing Emergency Fiscal Facility” that would be activated when interest rate manipulation was no longer working to avoid deflation. The Facility would be deployed by an “independent expert” appointed by the central bank.

The COVID-19 crisis presented the perfect opportunity to execute this proposal in the US, with BlackRock itself appointed to administer it. In March 2020, it was awarded a no-bid contract under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to deploy a $454 billion slush fund established by the Treasury in partnership with the Federal Reserve. This fund in turn could be leveraged to provide over $4 trillion in Federal Reserve credit. While the public was distracted with protests, riots and lockdowns, BlackRock suddenly emerged from the shadows to become the “fourth branch of government,” managing the controls to the central bank’s print-on-demand fiat money. How did that happen and what are the implications?

Rising from the Shadows

BlackRock was founded in 1988 in partnership with the Blackstone Group, a multinational private equity management firm that would become notorious after the 2008-09 banking crisis for snatching up foreclosed homes at firesale prices and renting them at inflated prices. BlackRock first grew its balance sheet in the 1990s and 2000s by promoting the mortgage-backed securities (MBS) that brought down the economy in 2008. Knowing the MBS business from the inside, it was then put in charge of the Federal Reserve’s “Maiden Lane” facilities. Called “special purpose vehicles,” these were used to buy “toxic” assets (largely unmarketable MBS) from Bear Stearns and American Insurance Group (AIG), something the Fed was not legally allowed to do itself.

BlackRock really made its fortunes, however, in “exchange traded funds” (ETFs). It gained trillions in investable assets after it acquired the iShares series of ETFs in a takeover of Barclays Global Investors in 2009. By 2020, the wildly successful iShares series included over 800 funds and $1.9 trillion in assets under management.

Exchange traded funds are bought and sold like shares but operate as index-tracking funds, passively following specific indices such as the S&P 500, the benchmark index of America’s largest corporations and the index in which most people invest. Today the fast-growing ETF sector controls nearly half of all investments in US stocks, and it is highly concentrated. The sector is dominated by just three giant American asset managers – BlackRock, Vanguard and State Street, the “Big Three” – with BlackRock the clear global leader. By 2017, the Big Three together had become the largest shareholder in almost 90% of S&P 500 firms, including Apple, Microsoft, ExxonMobil, General Electric and Coca-Cola. BlackRock also owns major interests in nearly every mega-bank and in major media.

In March 2020, based on its expertise with the Maiden Lane facilities and its sophisticated Aladdin risk-monitoring software, BlackRock got the job of dispensing Federal Reserve funds through eleven “special purpose vehicles” authorized under the CARES Act. Like the Maiden Lane facilities, these vehicles were designed to allow the Fed, which is legally limited to purchasing safe federally-guaranteed assets, to finance the purchase of riskier assets in the market.

Blackrock Bails Itself Out

The national lockdown left states, cities and local businesses in desperate need of federal government aid. But according to David Dayen in The American Prospect, as of May 30 (the Fed’s last monthly report), the only purchases made under the Fed’s new BlackRock-administered SPVs were ETFs, mainly owned by BlackRock itself. Between May 14 and May 20, about $1.58 billion in ETFs were bought through the Secondary Market Corporate Credit Facility (SMCCF), of which $746 million or about 47% came from BlackRock ETFs. The Fed continued to buy more ETFs after May 20, and investors piled in behind, resulting in huge inflows into BlackRock’s corporate bond ETFs.

In fact, these ETFs needed a bailout; and BlackRock used its very favorable position with the government to get one. The complicated mechanisms and risks underlying ETFs are explained in an April 3 article by business law professor Ryan Clements, who begins his post:

Exchange-Traded Funds (ETFs) are at the heart of the COVID-19 financial crisis. Over forty percent of the trading volume during the mid-March selloff was in ETFs ….

The ETFs were trading well below the value of their underlying bonds, which were dropping like a rock. Some ETFs were failing altogether. The problem was something critics had long warned of: while ETFs are very liquid, trading on demand like stocks, the assets that make up their portfolios are not. When the market drops and investors flee, the ETFs can have trouble coming up with the funds to settle up without trading at a deep discount; and that is what was happening in March.

According to a May 3 article in The National, “The sector was ultimately saved by the US Federal Reserve’s pledge on March 23 to buy investment-grade credit and certain ETFs. This provided the liquidity needed to rescue bonds that had been floundering in a market with no buyers.”

Prof. Clements states that if the Fed had not stepped in, “a ‘doom loop’ could have materialized where continued selling pressure in the ETF market exacerbated a fire-sale in the underlying [bonds], and again vice-versa, in a procyclical pile-on with devastating consequences.” He observes:

There’s an unsettling form of market alchemy that takes place when illiquid, over-the-counter bonds are transformed into instantly liquid ETFs. ETF “liquidity transformation” is now being supported by the government, just like liquidity transformation in mortgage backed securities and shadow banking was supported in 2008.

Working for Whom?

BlackRock got a bailout with no debate in Congress, no “penalty” interest rate of the sort imposed on states and cities borrowing in the Fed’s Municipal Liquidity Facility, no complicated paperwork or waiting in line for scarce Small Business Administration loans, no strings attached. It just quietly bailed itself out.

It might be argued that this bailout was good and necessary, since the market was saved from a disastrous “doom loop,” and so were the pension funds and the savings of millions of investors. Although BlackRock has a controlling interest in all the major corporations in the S&P 500, it professes not to “own” the funds. It just acts as a kind of “custodian” for its investors — or so it claims. But BlackRock and the other Big 3 ETFs vote the corporations’ shares; so from the point of view of management, they are the owners. And as observed in a 2017 article from the University of Amsterdam titled “These Three Firms Own Corporate America,” they vote 90% of the time in favor of management. That means they tend to vote against shareholder initiatives, against labor, and against the public interest. BlackRock is not actually working for us, although we the American people have now become its largest client base.

In a 2018 review titled “Blackrock – The Company That Owns the World”, a multinational research group called Investigate Europe concluded that BlackRock “undermines competition through owning shares in competing companies, blurs boundaries between private capital and government affairs by working closely with regulators, and advocates for privatization of pension schemes in order to channel savings capital into its own funds.”

Daniela Gabor, Professor of Macroeconomics at the University of Western England in Bristol, concluded after following a number of regulatory debates in Brussels that it was no longer the banks that wielded the financial power; it was the asset managers. She said:

We are often told that a manager is there to invest our money for our old age. But it’s much more than that. In my opinion, BlackRock reflects the renunciation of the welfare state. Its rise in power goes hand-in-hand with ongoing structural changes; in finance, but also in the nature of the social contract that unites the citizen and the state.

That these structural changes are planned and deliberate is evident in BlackRock’s August 2019 white paper laying out an economic reset that has now been implemented with BlackRock at the helm.

Public policy is made today in ways that favor the stock market, which is considered the barometer of the economy, although it has little to do with the strength of the real, productive economy. Giant pension and other investment funds largely control the stock market, and the asset managers control the funds. That effectively puts BlackRock, the largest and most influential asset manager, in the driver’s seat in controlling the economy.

As Peter Ewart notes in a May 14 article on BlackRock titled “Foxes in the Henhouse,” today the economic system “is not classical capitalism but rather state monopoly capitalism, where giant enterprises are regularly backstopped with public funds and the boundaries between the state and the financial oligarchy are virtually non-existent.”

If the corporate oligarchs are too big and strategically important to be broken up under the antitrust laws, rather than bailing them out they should be nationalized and put directly into the service of the public. At the very least, BlackRock should be regulated as a too-big-to-fail Systemically Important Financial Institution. Better yet would be to regulate it as a public utility. No private, unelected entity should have the power over the economy that BlackRock has, without a legally enforceable fiduciary duty to wield it in the public interest.

Globalists Reveal That The “Great Economic Reset” Is Coming In 2021

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By Brandon Smith

Source: Alt-Market.com

For those not familiar with the phrase “global economic reset”, it is one that has been used ever increasingly by elitists in the central banking world for several years. I first heard it referenced by Christine Lagarde, the head of the IMF at the time, in 2014. The reset is often mentioned in the same breath as ideas like “the New Multilateralism” or “the Multipolar World Order” or “the New World Order”. All of these phrases mean essentially the same thing.

The reset is promoted as a solution to the ongoing economic crisis which was triggered in 2008. This same financial crash is still with us today, but now, after a decade of central bank money printing and debt creation, the bubble is even bigger than it was before. As always, the central bank “cure” is far worse than the disease, and the renewed crash we face today is far more deadly than what would have happened in 2008 if we had simply taken our medicine and refused to prop up weak parts of the economy artificially.

Many alternative economists often wrongly attribute the Fed’s habit of making things worse to “hubris” or “ignorance”. They think the Fed actually wants to save the financial system or “protect the golden goose”, but this is not reality. The truth is, the Fed is not a bumbling maintenance man, the Fed is a saboteur, a suicide bomber that is willing to destroy even itself as an institution in order to explode the US economy and clear the path for a new globally centralized one world system. Hence, the “Global Reset”.

In 2015 in my article ‘The Global Economic Reset Has Begun’, I stated:

“The global reset is not a “response” to the process of collapse we are trapped in today. No, the global reset as implemented by central banks and the BIS/IMF is the cause of the collapse. The collapse is a tool, a flamethrower burning a great hole in the forest to make way for the foundations of the globalist Ziggurat to be built….economic disaster serves the interests of elitists.”

Now in 2020 we see the globalist plan coming to fruition, with the elites revealing what appears to be their intent to launch their reset in 2021. The World Economic Forum officially announced the Great Reset initiative as part of their Covid Action Platform last week, and a summit is scheduled in January 2021 to discuss their plans more openly with the world and the mainstream media.

The WEF also posted a rather bizarre video on the Reset, which consists of a series of images of the world falling apart (and images of factories releasing harmless carbon emission into the air which I suppose is meant to scare us with notions of global warming). The destruction is then “reset” at the push of a button, with everything reversing back to a pristine human-less world of nature and the words “Join Us”.

The reset, according to discussions by the IMF, is basically the next stage in the formation of a one-world economic system and potential global government. This seems to fall in line with the solutions offered during the Event 201 pandemic simulation; a simulation of a coronavirus pandemic that was held by the Bill And Melinda Gates Foundation and the World Economic Forum only two months before the REAL THING happened at the beginning of 2020. Event 201 suggested that one of the top solutions to a pandemic would be the institution of a centralized global economic body that could handle the financial response to the coronavirus.

Is it not convenient that the events of the real coronavirus pandemic fall exactly in line with the Event 201 simulation, as well as directly in line with the global reset plans of the IMF and the World Economic Forum? As they say, let no crisis go to waste, or, as is the motto of the globalists “Order Out Of Chaos”.

With civil unrest about to become a way of life for many parts of the world including the US, and the pandemic set for a resurgence of infections after the “reopening”, creating a rationale for a second wave of lockdowns probably in July, the economy as we know it is being destroyed. The last vestiges of the system, hanging by a thin thread after the crash of 2008, are now being cut.

The goal is rather obvious – Terrify the population with poverty, internal conflicts and a broken supply chain until they lobby the establishment for help.  Then, offer the “solution” of medical tyranny, immunity passports, martial law, a global economic system based on a cashless digital society in which privacy in trade is erased, and then slowly but surely form a faceless “multilateral” global government which answers to no one and does whatever it pleases.

I remember back in 2014 when Christine Lagarde first began talking about the reset. That same year she also made a very strange speech to the National Press Club in which she started rambling gleefully about numerology and the “magic number 7”. Many within the club laughed, as there was apparently an inside joke that the rest of us were not privy to. Well, I would point out that the World Economic Forum meeting on the global reset in 2021 will be held exactly 7 years after Lagarde gave that speech. Just another interesting coincidence I suppose…

The new world order, the global reset, is a long running scheme to centralize power, but in a way that is meant to be sustained for centuries to come. The elites know that it is not enough to achieve global governance by force alone; such an attempt would only lead to resistance and eternal rebellion. No, what the elites want is for the public to ASK, even beg for global governance. If the public is tricked into demanding it as a way to save them from the horrors of global chaos, then they are far less likely to rebel against it later. Problem – reaction – solution.

The pandemic is not going away anytime soon. Everyone should expect that state governments and the federal government will call for renewed lockdowns. With these new lockdowns, the US economy in particular will be finished. With 40 million people losing their jobs during the last lockdowns, many states only partially reopened, and only 13% to 18% of small businesses receiving bailout loans to survive, the next two months are going to be a devastating wake-up call.

The real solution will be for people to form more self reliant communities free of the mainstream economy. The real solution should be decentralization and independence, not centralization and slavery. The globalists will seek to interfere with any effort to break from the program. That said, they can do very little if millions of people enact localization efforts at the same time. If people aren’t reliant on the system, then they cannot be controlled by the system.

The real test will come with the final collapse of the existing economy. When stagflation spikes even harder than it is right now and prices of necessities double or triple yet again, and joblessness skyrockets even further, how many people will clamor for the globalist solution and how many will build their own systems? How many will be bowing in submission and how many will be ready to fight back. It is a question I still don’t have an answer to even after 14 years of analysis on the issue.

What I suspect is that many people will fight back. Not as many as we might hope for, but enough to defend the cause of liberty. Maybe this is overly optimistic, but I believe the globalists are destined to lose this war in the long run.

Another Bank Bailout Under Cover of a Virus

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By Ellen Brown

Source: Web of Debt

Insolvent Wall Street banks have been quietly bailed out again. Banks made risk-free by the government should be public utilities.  

When the Dodd Frank Act was passed in 2010, President Obama triumphantly declared, “No more bailouts!” But what the Act actually said was that the next time the banks failed, they would be subject to “bail ins” – the funds of their creditors, including their large depositors, would be tapped to cover their bad loans.

Then bail-ins were tried in Europe. The results were disastrous.

Many economists in the US and Europe argued that the next time the banks failed, they should be nationalized – taken over by the government as public utilities. But that opportunity was lost when, in September 2019 and again in March 2020, Wall Street banks were quietly bailed out from a liquidity crisis in the repo market that could otherwise have bankrupted them. There was no bail-in of private funds, no heated congressional debate, and no public vote. It was all done unilaterally by unelected bureaucrats at the Federal Reserve.

“The justification of private profit,” said President Franklin Roosevelt in a 1938 address, “is private risk.” Banking has now been made virtually risk-free, backed by the full faith and credit of the United States and its people. The American people are therefore entitled to share in the benefits and the profits. Banking needs to be made a public utility.

The Risky Business of Borrowing Short to Lend Long

Individual banks can go bankrupt from too many bad loans, but the crises that can trigger system-wide collapse are “liquidity crises.” Banks “borrow short to lend long.” They borrow from their depositors to make long-term loans or investments while promising the depositors that they can come for their money “on demand.” To pull off this sleight of hand, when the depositors and the borrowers want the money at the same time, the banks have to borrow from somewhere else. If they can’t find lenders on short notice, or if the price of borrowing suddenly becomes prohibitive, the result is a “liquidity crisis.”

Before 1933, when the government stepped in with FDIC deposit insurance, bank panics and bank runs were common. When people suspected a bank was in trouble, they would all rush to withdraw their funds at once, exposing the fact that the banks did not have the money they purported to have. During the Great Depression, more than one-third of all private US banks were closed due to bank runs.

But President Franklin D. Roosevelt, who took office in 1933, was skeptical about insuring bank deposits. He warned, “We do not wish to make the United States Government liable for the mistakes and errors of individual banks, and put a premium on unsound banking in the future.” The government had a viable public alternative, a US postal banking system established in 1911. Postal banks became especially popular during the Depression, because they were backed by the US government. But Roosevelt was pressured into signing the 1933 Banking Act, creating the Federal Deposit Insurance Corporation that insured private banks with public funds.

Congress, however, was unwilling to insure more than $5,000 per depositor (about $100,000 today), a sum raised temporarily in 2008 and permanently in 2010 to $250,000. That meant large institutional investors (pension funds, mutual funds, hedge funds, sovereign wealth funds) had nowhere to park the millions of dollars they held between investments. They wanted a place to put their funds that was secure, provided them with some interest, and was liquid like a traditional deposit account, allowing quick withdrawal. They wanted the same “ironclad moneyback guarantee” provided by FDIC deposit insurance, with the ability to get their money back on demand.

It was largely in response to that need that the private repo market evolved. Repo trades, although technically “sales and repurchases” of collateral, are in effect secured short-term loans, usually repayable the next day or in two weeks. Repo replaces the security of deposit insurance with the security of highly liquid collateral, typically Treasury debt or mortgage-backed securities. Although the repo market evolved chiefly to satisfy the needs of the large institutional investors that were its chief lenders, it also served the interests of the banks, since it allowed them to get around the capital requirements imposed by regulators on the conventional banking system. Borrowing from the repo market became so popular that by 2008, it provided half the credit in the country. By 2020, this massive market had a turnover of $1 trillion a day.

Before 2008, banks also borrowed from each other in the fed funds market, allowing the Fed to manipulate interest rates by controlling the fed funds rate. But after 2008, banks were afraid to lend to each other for fear the borrowing banks might be insolvent and might not pay the loans back. Instead the lenders turned to the repo market, where loans were supposedly secured with collateral. The problem was that the collateral could be “rehypothecated,” or used for several loans at once; and by September 2019, the borrower side of the repo market had been taken over by hedge funds, which were notorious for risky rehypothecation. Many large institutional lenders therefore pulled out, driving the cost of borrowing at one point from 2% to 10%.

Rather than letting the banks fail and forcing a bail-in of private creditors’ funds, the Fed quietly stepped in and saved the banks by becoming the “repo lender of last resort.” But the liquidity crunch did not abate, and by March the Fed was making $1 trillion per day available in overnight loans. The central bank was backstopping the whole repo market, including the hedge funds, an untenable situation.

In March 2020, under cover of a national crisis, the Fed therefore flung the doors open to its discount window, where only banks could borrow. Previously, banks were reluctant to apply there because the interest was at a penalty rate and carried a stigma, signaling that the bank must be in distress. But that concern was eliminated when the Fed announced in a March 15 press release that the interest rate had been dropped to 0.25% (virtually zero). The reserve requirement was also eliminated, the capital requirement was relaxed, and all banks in good standing were offered loans of up to 90 days, “renewable on a daily basis.” The loans could be continually rolled over. And while the alleged intent was “to help meet demands for credit from households and businesses at this time,” no strings were attached to this interest-free money. There was no obligation to lend to small businesses, reduce credit card rates, or write down underwater mortgages.

The Fed’s scheme worked, and demand for repo loans plummeted. Even J.P. Morgan Chase, the largest bank in the country, has acknowledged borrowing at the Fed’s discount window for super cheap loans. But the windfall to Wall Street has not been shared with the public. In Canada, some of the biggest banks slashed their credit card interest rates in half, from 21 percent to 11 percent, to help relieve borrowers during the COVID-19 crisis. But US banks have felt no such compunction. US credit card rates dropped in April only by half a percentage point, to 20.15%. The giant Wall Street banks continue to favor their largest clients, doling out CARES Act benefits to them first, emptying the trough before many smaller businesses could drink there.

In 1969, Prime Minister Indira Gandhi nationalized 14 of India’s largest banks, not because they were bankrupt (the usual justification today) but to ensure that credit would be allocated according to planned priorities, including getting banks into rural areas and making cheap financing available to Indian farmers.  Congress could do the same today, but the odds are it won’t. As Sen. Dick Durbin said in 2009, “the banks … are still the most powerful lobby on Capitol Hill. And they frankly own the place.”

Time for the States to Step In

State and local governments could make cheap credit available to their communities, but today they too are second class citizens when it comes to borrowing. Unlike the banks, which can borrow virtually interest-free with no strings attached, states can sell their bonds to the Fed only at market rates of 3% or 4% or more plus a penalty. Why are elected local governments, which are required to serve the public, penalized for shortfalls in their budgets caused by a mandatory shutdown, when private banks that serve private stockholders are not?

States can borrow from the federal unemployment trust fund, as California just did for $348 million, but these loans too must be paid back with interest, and they must be used to cover soaring claims for state unemployment benefits. States remain desperately short of funds to repair holes in their budgets from lost revenues and increased costs due to the shutdown.

States are excellent credit risks – far better than banks would be without the life-support of the federal government. States have a tax base, they aren’t going anywhere, they are legally required to pay their bills, and they are forbidden to file for bankruptcy. Banks are considered better credit risks than states only because their deposits are insured by the federal government and they are gifted with routine bailouts from the Fed, without which they would have collapsed decades ago.

State and local governments with a mandate to serve the public interest deserve to be treated as well as private Wall Street banks that have repeatedly been found guilty of frauds on the public. How can states get parity with the banks? If Congress won’t address that need, states can borrow interest-free at the Fed’s discount window by forming their own publicly-owned banks. For more on that possibility, see my earlier article here.

As Buckminster Fuller said, “You never change things by fighting the existing reality. To change something, create a new model that makes the old model obsolete.” Post-COVID-19, the world will need to explore new models; and publicly-owned banks should be high on the list.