Category Archives: Corruption

Nullify Government Tyranny: In 2020, Harness the Power of Your Discontent

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By John W. Whitehead

Source: The Rutherford Institute

“The people have the power, all we have to do is awaken that power in the people. The people are unaware. They’re not educated to realize that they have power. The system is so geared that everyone believes the government will fix everything. We are the government.”—John Lennon

Twenty years into the 21st century, and what do we have to show for it?

Government corruption, tyranny and abuse have propelled us at warp speed towards a full-blown police state in which egregious surveillance, roadside strip searches, police shootings of unarmed citizens, censorship, retaliatory arrests, the criminalization of lawful activities, warmongering, indefinite detentions, SWAT team raids, asset forfeiture, police brutality, profit-driven prisons, and pay-to-play politicians have become the new normal.

Here’s just a small sampling of the laundry list of abuses—cruel, brutal, immoral, unconstitutional and unacceptable—that have been heaped upon us by the government over the past two decades.

The government failed to protect our lives, liberty and happiness. The predators of the police state wreaked havoc on our freedoms, our communities, and our lives. The government didn’t listen to the citizenry, refused to abide by the Constitution, and treated the citizenry as a source of funding and little else. Police officers shot unarmed citizens and their household pets. Government agents—including local police—were armed to the teeth and encouraged to act like soldiers on a battlefield. Bloated government agencies were allowed to fleece taxpayers. Government technicians spied on our emails and phone calls. And government contractors made a killing by waging endless wars abroad.

The American President became more imperial. Although the Constitution invests the President with very specific, limited powers, in recent years, American presidents (Trump, Obama, Bush, Clinton, etc.) claimed the power to completely and almost unilaterally alter the landscape of this country for good or for ill. The powers that have been amassed by each successive president through the negligence of Congress and the courts—powers which add up to a toolbox of terror for an imperial ruler—empower whomever occupies the Oval Office to act as a dictator, above the law and beyond any real accountability. The presidency itself has become an imperial one with permanent powers.

Militarized police became a power unto themselves, 911 calls turned deadly, and traffic stops took a turn for the worse. Lacking in transparency and accountability, protected by the courts and legislators, and rife with misconduct, America’s police forces became a growing menace to the citizenry and the rule of law. Despite concerns about the government’s steady transformation of local police into a standing military army, local police agencies acquired even more weaponry, training and equipment suited for the battlefield. Police officers were also given free range to pull anyone over for a variety of reasons and subject them to forced cavity searches, forced colonoscopies, forced blood draws, forced breath-alcohol tests, forced DNA extractions, forced eye scans, forced inclusion in biometric databases.

The courts failed to uphold justice. With every ruling handed down, it becomes more apparent that we live in an age of hollow justice, with government courts more concerned with protecting government agents than upholding the rights of “we the people.” This is true at all levels of the judiciary, but especially so in the highest court of the land, the U.S. Supreme Court, which is seemingly more concerned with establishing order and protecting government agents than with upholding the rights enshrined in the Constitution. A review of critical court rulings over the past two decades, including some ominous ones by the U.S. Supreme Court, reveals a startling and steady trend towards pro-police state rulings by an institution concerned more with establishing order and protecting the ruling class and government agents than with upholding the rights enshrined in the Constitution.

The Surveillance State rendered Americans vulnerable to threats from government spies, police, hackers and power failures. Thanks to the government’s ongoing efforts to build massive databases using emerging surveillance, DNA and biometrics technologies, Americans have become sitting ducks for hackers and government spies alike. Billions of people have been affected by data breaches and cyberattacks. On a daily basis, Americans have been made to relinquish the most intimate details of who we are—our biological makeup, our genetic blueprints, and our biometrics (facial characteristics and structure, fingerprints, iris scans, etc.)—in order to navigate an increasingly technologically-enabled world.

Mass shootings claimed more lives. Mass shootings have taken place in virtually every venue, including at churches, in nightclubs, on college campuses, on military bases, in elementary schools, in government offices, and at concerts. However, studies make clear that the government’s gun violence—inflicted on unarmed individuals by battlefield-trained SWAT teams, militarized police, and bureaucratic government agents trained to shoot first and ask questions later—poses a greater threat to the safety and security of the nation than any mass shooter.

Debtors’ prisons made a comeback. Not content to expand the police state’s power to search, strip, seize, raid, steal from, arrest and jail Americans for any infraction, no matter how insignificant, state courts were given the green light to resume their practice of jailing individuals who are unable to pay the hefty fines imposed by the American police state. These debtors’ prisons play right into the hands of the corporations that make a profit by jailing Americans. This is no longer a government “of the people, by the people, for the people.” It has become a government “of the rich, by the elite, for the corporations,” and its rise to power has been predicated on shackling the American taxpayer to a debtors’ prison guarded by a phalanx of politicians, bureaucrats and militarized police with no hope of parole and no chance for escape.

The cost of endless wars drove the nation deeper into debt. America’s war spending has already bankrupted the nation to the tune of more than $20 trillion dollars. Policing the globe and waging endless wars abroad hasn’t made America—or the rest of the world—any safer, but it has made the military industrial complex rich at taxpayer expense. Approximately 200,000 US troops are stationed in 177 countries throughout the world, including Africa, where troops reportedly carry out an average of 10 military exercises and engagements daily. Meanwhile, America’s infrastructure is falling apart. The interest on the money America has borrowed to wage its wars will cost an estimated $8 trillion.

“Show your papers” incidents skyrocketed. We are not supposed to be living in a “show me your papers” society. Despite this, the U.S. government has introduced measures allowing police and other law enforcement officials to stop individuals (citizens and noncitizens alike), demand they identify themselves, and subject them to patdowns, warrantless searches, and interrogations. These actions fly in the face of longstanding constitutional safeguards forbidding such police state tactics.

The government waged war on military veterans. The government has done a pitiful job of respecting the freedoms of military veterans and caring for their needs once out of uniform. Despite the fact that the U.S. boasts more than 20 million veterans who have served in World War II through the present day, the plight of veterans today is America’s badge of shame, with large numbers of veterans impoverished, unemployed, traumatized mentally and physically, struggling with depression, suicide, and marital stress, homeless, subjected to sub-par treatment at clinics and hospitals, left to molder while their paperwork piles up within Veterans Administration offices, and increasingly treated like criminals—targeted for surveillance, censorship, threatened with incarceration or involuntary commitment, labeled as extremists and/or mentally ill, and stripped of their Second Amendment rights—for daring to speak out against government misconduct.

Free speech was dealt one knock-out punch after another. Protest laws, free speech zones, bubble zones, trespass zones, anti-bullying legislation, zero tolerance policies, hate crime laws, shadow banning on the Internet, and a host of other legalistic maladies dreamed up by politicians and prosecutors (and championed by those who want to suppress speech with which they might disagree) conspired to corrode our core freedoms, purportedly for our own good. On paper—at least according to the U.S. Constitution—we are technically free to speak. In reality, however, we are only as free to speak as a government official—or corporate entities such as Facebook, Google or YouTube—may allow. The reasons for such censorship varied widely from political correctness, so-called safety concerns and bullying to national security and hate crimes but the end result remained the same: the complete eradication of free speech.

The government waged a renewed war on private property. The battle to protect our private property has become the final constitutional frontier, the last holdout against our freedoms being usurped. We no longer have any real property rights. That house you live in, the car you drive, the small (or not so small) acreage of land that has been passed down through your family or that you scrimped and saved to acquire, whatever money you manage to keep in your bank account after the government and its cronies have taken their first and second and third cut…none of it is safe from the government’s greedy grasp. At no point do you ever have any real ownership in anything other than the clothes on your back. Everything else can be seized by the government under one pretext or another (civil asset forfeiture, unpaid taxes, eminent domain, public interest, etc.).

Schools became even more like prisons. So-called school “safety” policies—which run the gamut from zero tolerance policies that punish all infractions harshly to surveillance cameras, metal detectors, random searches, drug-sniffing dogs, school-wide lockdowns, active-shooter drills and militarized police officers—have turned schools into prisons and young people into prisoners. From the moment a child enters one of the nation’s 98,000 public schools to the moment she graduates, she will be exposed to a steady diet of draconian zero tolerance policies that criminalize childish behavior, overreaching anti-bullying statutes that criminalize speech, school resource officers (police) tasked with disciplining and/or arresting so-called “disorderly” students, standardized testing that emphasizes rote answers over critical thinking, politically correct mindsets that teach young people to censor themselves and those around them, and extensive biometric and surveillance systems that, coupled with the rest, acclimate young people to a world in which they have no freedom of thought, speech or movement.

The Deep State took over. The American system of representative government was overthrown by the Deep State—a.k.a. the police state a.k.a. the military/corporate industrial complex—a profit-driven, militaristic corporate state bent on total control and global domination through the imposition of martial law here at home and by fomenting wars abroad. The “government of the people, by the people, for the people” has perished. In its place is a shadow government, a corporatized, militarized, entrenched bureaucracy that is fully operational and staffed by unelected officials who are, in essence, running the country and calling the shots in Washington DC, no matter who sits in the White House. Mind you, by “government,” I’m not referring to the highly partisan, two-party bureaucracy of the Republicans and Democrats. Rather, I’m referring to “government” with a capital “G,” the entrenched Deep State that is unaffected by elections, unaltered by populist movements, and has set itself beyond the reach of the law. This is the hidden face of a government that has no respect for the freedom of its citizenry. This shadow government, which “operates according to its own compass heading regardless of who is formally in power,” makes a mockery of elections and the entire concept of a representative government.

The takeaway: Everything the founders of this country feared has come to dominate in modern America. “We the people” have been saddled with a government that is no longer friendly to freedom and is working overtime to trample the Constitution underfoot and render the citizenry powerless in the face of the government’s power grabs, corruption and abusive tactics.

So how do you balance the scales of justice at a time when Americans are being tasered, tear-gassed, pepper-sprayed, hit with batons, shot with rubber bullets and real bullets, blasted with sound cannons, detained in cages and kennels, sicced by police dogs, arrested and jailed for challenging the government’s excesses, abuses and power-grabs?

No matter who sits in the White House, politics won’t fix a system that is broken beyond repair.

For that matter, protests and populist movements also haven’t done much to push back against an authoritarian regime that is deaf to our cries, dumb to our troubles, blind to our needs, and accountable to no one.

So how do you not only push back against the police state’s bureaucracy, corruption and cruelty but also launch a counterrevolution aimed at reclaiming control over the government using nonviolent means?

You start by changing the rules and engaging in some (nonviolent) guerilla tactics.

Take part in grassroots activism, which takes a trickle-up approach to governmental reform by implementing change at the local level (in other words, think nationally, but act locally).

And then, nullify everything the government does that flies in the face of the principles on which this nation was founded.

If there is any means left to us for thwarting the government in its relentless march towards outright dictatorship, it may rest with the power of juries and local governments to invalidate governmental laws, tactics and policies that are illegitimate, egregious or blatantly unconstitutional.

In an age in which government officials accused of wrongdoing—police officers, elected officials, etc.—are treated with general leniency, while the average citizen is prosecuted to the full extent of the law, nullification is a powerful reminder that, as the Constitution tells us, “we the people” are the government.

For too long we’ve allowed our so-called “representatives” to call the shots. Now it’s time to restore the citizenry to their rightful place in the republic: as the masters, not the servants.

Nullification is one way of doing so.

Various cities and states have been using this historic doctrine with mixed results on issues as wide ranging as gun control and healthcare to “claim freedom from federal laws they find onerous or wrongheaded.” Most recently, a growing number of communities—including more than a 100 counties, cities and towns in Virginia—have declared themselves to be Second Amendment sanctuaries and adopted resolutions opposing any “unconstitutional restrictions” on the right to keep and bear arms. It is mass movements such as these that the government fears most.

Indeed, any hope of freeing ourselves rests—as it always has—at the local level, with “we the people.” One of the most important contributions an individual citizen can make is to become actively involved in local community affairs, politics and legal battles. As the adage goes, “Think globally, act locally.”

America was meant to be primarily a system of local governments, which is a far cry from the colossal federal bureaucracy we have today. Yet if our freedoms are to be restored, understanding what is transpiring practically in your own backyard—in one’s home, neighborhood, school district, town council—and taking action at that local level must be the starting point.

Responding to unmet local needs and reacting to injustices is what grassroots activism is all about. Attend local city council meetings, speak up at town hall meetings, organize protests and letter-writing campaigns, employ “militant nonviolent resistance” and civil disobedience, which Martin Luther King Jr. used to great effect through the use of sit-ins, boycotts and marches.

Let’s not take the mistakes, carnage, toxicity and abuse of this past decade into 2020.

As long as we continue to allow callousness, cruelty, meanness, immorality, ignorance, hatred, intolerance, racism, militarism, materialism, meanness and injustice—magnified by an echo chamber of nasty tweets and government-sanctioned brutality—to trump justice, fairness and equality, there can be no hope of prevailing against the police state.

As I make clear in my book Battlefield America: The War on the American People, we could transform this nation if only Americans would work together to harness the power of their discontent and push back against the government’s overreach, excesses and abuse.

Neoliberal Economics Destroyed the Economy and the Middle Class

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By Paul Craig Roberts

Source: PaulCraigRoberts.com

According to official US government economic data, the US economy has been growing for 10.5 years since June of 2009. The reason that the US government can produce this false conclusion is that costs that are subtrahends from GDP are not included in the measure. Instead, many costs are counted not as subtractions from growth but as additions to growth. For example, the penalty interest on a person’s credit card balance that results when a person falls behind his payments is counted as an increase in “financial services” and as an increase in Gross Domestic Product. The economic world is stood on its head.

It is aggregate demand that drives the economy. Payments made on a rise in interest rates on credit card balances from 19% to a 29% penalty rate reduce consumers’ ability to contribute to aggregate demand by purchasing goods and the services of doctors, lawyers, plumbers, electricians, and carpenters. Contrary to logic, the fee is magically counted in the “financial services” category as a contributor to GDP growth. The extortion of a fee that reduces aggregate demand lowers GDP, but builds paper wealth in the financial services sector.

GDP growth is also artificially inflated by counting as GDP abstract concepts that do not produce income streams. For example, for homeowners the US Department of Commerce estimates the rental values of owner-occupied housing, that is, the amount owners would be paying if they rented instead of owned their homes, and counts this imputed rent as GDP.

These and other absurdities have caused economist Michael Hudson to conclude correctly that the “financial reality of how the U.S. economy works is no longer captured in GDP statistics.”
https://michael-hudson.com/2019/10/asset-price-inflation-and-rent-seeking/

Today we have two economies. One is the real economy of production and consumption. The other is the financialized economy of paper wealth. The former is doing poorly, and the latter is doing well. The financialized economy is growing much faster than the real economy. Indeed, the real economy might not be growing at all.

Michael Hudson describes the difference. The stock market is at all time highs that have created massive wealth in financial assets for stock and bond owners. In the real economy the situation is totally different: “The Federal Reserve’s Report on the Economic Well-Being of U.S. Households in 2018 reports that 39% of Americans do not have $400 cash available for a medical or other emergency, and that a quarter of adults skipped medical care in 2018 because they could not afford it ( https://www.federalreserve.gov/publications/files/2018-report-economic-well-being-us-households-201905.pdf ). The latest estimates by the U.S. Government Accountability Office (GAO) report that nearly half (48 percent) of households headed by someone 55 and older lack any retirement savings or pension benefits ( https://www.aarp.org/retirement/retirement-savings/info-2019/no-retirement-money-saved.html ). Even in what the press calls an economic boom, most Americans feel stressed and many are chronically angry and worried. According to a 2015 survey by the American Psychological Association, financial worry is the “number one cause of stress in America today” ( https://www.apa.org/news/press/releases/2015/02/money-stress ).

The data is completely clear. The rich are becoming much richer, and the rest are becoming poorer. Michael Hudson explains:

“The creation and trading of property and financial assets at rising prices has been fueled by rising debt levels owed to the financial sector. This sector’s returns therefore are best seen not as real wealth on the asset side of the balance sheet, but as overhead on the liabilities side. And the process is multi-layered: income accruing to the financial wealth owned by the top 10 Percent is paid mainly by the bottom 90 percent in the form of rising debt service and other returns to financial and other property.

“In the textbook models of industrial capitalism’s mass production and consumption, an asset’s price is determined by its cost of production. If the price rises above this level, competitors will offer it cheaper. But in the financialized economy an asset’s price is determined by how much credit buyers can borrow to buy it, not by its cost of production. A home is worth as much as a bank will lend to a bidder.

“The engine of industrial capitalism and its consumer society is a positive feedback loop in which widely shared income growth, expanding consumption and markets generated yet more investment and growth. By contrast, the feedback loop of financial capitalism is an exponential growth of credit-driven debt, driving up asset prices and hence requiring yet more borrowing to buy homes, retirement income and other assets. Corporate management and investment today is mainly about obtaining capital gains for real estate, stocks and bonds than about earning income.

“We illustrate this by charting the flow of income and capital gains in the real estate sector to show the dominance of asset-price gains over net rental income – and how rental income is used up paying interest in our financialized economy. Likewise, corporate income is spent (and new debt taken on) largely for stock buybacks to raise share prices. The resulting dynamic is exponential and destabilizing.”

This dynamic is destabilizing, because as more of consumers’ discretionary income is drawn off to service mortgage, credit card, automobile and student debt and for compulsory health insurance, less is left to purchase the goods and services in the real economy. Consequently, credit-driven debt grows faster than the income that services it, and this impoverishes the 90%. However, for the 10%, money creation by the Federal Reserve in order to protect the balance sheets of the “banks too big to fail or jail” drives up the values of financial assets. As a result the distribution of income and wealth becomes hightly polarized.

Think about the many Americans who meet their living expenses by making only the minimum payment on their credit card balance. At 19% interest their debt grows monthly. Eventually they hit a credit card debt cap and can no longer use the card to cover their living expenses. But they have the burden of a large debt balance to service without an income stream capable of servicing it.

Think about the corporation that decapitalizes itself in order to produce short to intermediate term capital gains for shareholders and executives by indebting the firm in order to buy back the firm’s shares. The end result is that all income goes for debt service.

In a financialized economy, the only possible outcomes are debt forgiveness or collapse.

As Michael Hudson makes clear, the combination of nonsensical categories in the National Income and Product Accounts and a financialized economy means we have no accurate picture of the economy’s condition. Michael Hudson has a proposal for correcting these problems and making GDP accounting more accurate, but as ecological economists such as Herman Daly have made clear, GDP measurement also omits the external costs of production. This means that we do not know whether GDP is growing or declining. It is entirely possible that the ecological and social costs of an increase in GDP (as currently measured) are greater than the value of the increased output. (See Paul Craig Roberts, The Failure of Laissez-Faire Capitalism, https://www.amazon.com/Failure-Laissez-Faire-Capitalism/dp/0986036250/ref=sr_1_2?crid=16NHZEQ9G3JRW&keywords=paul+craig+roberts+books&qid=1576440032&s=books&sprefix=Paul+Craig%2Caps%2C173&sr=1-2 )

Perhaps the major way in which GDP is overstated is the exclusion of external or social costs. External or social costs are costs of producing a product that the producer does not incur but imposes on third parties or on the environment. For example, untreated sewage dumped into a stream imposes costs on people downstream. Runoff of chemical fertilizers from commercial farming produces dead zones in the Gulf of Mexico and toxic algal blooms such as Red Tide that result in massive fish kills, make seafood unsafe, cause human ailments and adversely impact the tourist trade of beach areas. The result is lost incomes, ruined vacations, health expenses, and none of these costs are born by the commercial farmers.

Real estate development produces massive external costs. Scenic views from existing properties are blocked, thus reducing their values. Construction noise and congestion impose costs on existing residents and reduces the quality of their lives. Water runoff problems are often created. Infrastructure has to be provided, such as larger highways to provide evacuation from hurricane-impacted areas, usually financed by taxpayers. If the global warming case is correct, the external cost of human economic activity can be the life of the planet.

Lakshmi Sarah in the May/June, 2019, issue of the Sierra Club magazine provides an excellent detailed account of the external costs of coal-fired power plants being built in India by the Indian conglomerate Tata with a loan from the International Finance Corporation, a branch of the World Bank. The ground water in the area has been ruined and is no longer drinkable. Farmers are no longer able to grow crops on half of the area farmland. Heated wastewater that is dumped into the Gulf of Kutch is destroying fishing. The ecology and the livelihoods of the population are essentially destroyed. None of these costs are born by the private power companies.

Tired of being doormats for capitalists and the World Bank, the residents of the affected provinces rebelled. They have succeeded in getting their case before the US Supreme Court. It seems that the International Finance Corporation is so accustomed to financing projects that produce large external costs that it overlooked its obligation to examine the environmental impact of the projects it finances. This oversight resulted in Indian farmers and fishermen getting their case before the US Supreme Court. The International Finance Corporation’s lawyers argued that the World Bank lending agency had “absolute immunity.” The Supreme Court said no and remanded the case to the circuit court to rule on the damages.

Perhaps the most surprising thing about this apparent victory for ordinary faraway little people in an American court against the World Bank, a principle instrument of American imperialism, is that the Trump administration appeared in court as a friend of the Indian farmers and fishermen. The US Solicitor General, represented by Jonathan Ellis, rejected the notion that international orgnizations have absolute immunity. The Establishment exists on its immunity. Here we see the ultimate reason that the ruling Establishment wants rid of Trump.

Already the senior staff of the International Finance Corporation have come to the realization that they have other responsibilities than just to shuffle money out the lending shute. If the Indian farmers and fishermen succeed in protecting themselves from ruination by external costs, perhaps Americans who suffer external costs will follow their lead.

Perhaps economists will also come to the realization that they owe us accurate GDP accounting and not fanciful accounts that serve elite wealth in the financialized economy.

The Year of Manufactured Hysteria

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By CJ Hopkins

Source: Consent Factory, Inc.

Well, it looks like we’ve somehow managed to survive another year of diabolical Putin-Nazi attacks on democracy. It was touch-and-go there for a while, especially coming down the home stretch, what with Jeremy Corbyn’s desperate attempt to overthrow the UK government, construct a British version of Auschwitz, and start rounding up and mass-murdering the Jews.

That was certainly pretty scary … but then, the whole year was pretty scary.

The horror began promptly in early January, when Rachel Maddow revealed that Putin was projecting words out of Trump’s mouth in real-time, i.e., literally using Trump’s head like a puppet, or one of those Mission Impossible masks. And that was just the tip of the iceberg, as, despite the best efforts of Integrity Initiative, Bellingcat, and other such establishment psyops, Internet-censoring sites like NewsGuard, and an army of mass hysteria generators, Putin’s legion of Russian “influencers” was continuing to maliciously influence Americans, who were probably also still under attack by brain-eating Russian-Cubano crickets!

While Resistance members were still wrapping their heads in anti-cricket aluminum foil, Putin (i.e., Russian Hitler) ordered Trump (i.e., Russian-asset Hitler) to launch a coup in Venezuela (i.e., Russian Hitler’s South American ally), probably to distract us from “Smirkboy Hitler” and his acne-faced gang of MAGA cap-wearing Catholic high-school Hitler Youth, who were trying to invade and Hitlerize the capital. Or maybe the coup was meant to distract us from the un-American activities of Bernie Sanders, who had also been deemed a Russian asset, or a devious “Kremlin-Trump operation,” or was working with Tulsi Gabbard to build an army of blood-drinking Hindu nationalists, genocidal Assadists, and American fascists to help the Iranians (and the Russians, of course, and presumably also Jeremy Corbyn) frontally assault the State of Israel and drive the Jews into the sea.

As if all that wasn’t horrifying enough (and ridiculous and confusing enough), by early Spring there was mounting evidence that Putin had somehow gotten to Mueller, possibly with one of those FSB pee-tapes, and was sabotaging the “Russiagate” coup the Intelligence Community, the Democratic Party, the corporate media, and the rest of the Resistance had been methodically preparing since 2016. Liberals’ anuses began puckering and unpuckering as it gradually became clear that the “Mueller Report” was not going to prove that Donald Trump had colluded with Putin and Julian Assange to steal the presidency from Hillary Clinton and transform the United States of America into a genocidal Putin-Nazi Reich.

Meanwhile, the anti-Semitism pandemic that had mysteriously erupted in 2016 (i.e., right around the time Trump won the nomination) was raging unchecked throughout the West. Jews in Great Britain were on the brink of panic because approximately 0.08 percent of Labour Party members were anti-Semitic, as opposed to the rest of the British public, who have never shown any signs of anti-Semitism (or any other kind of racism or bigotry), and are practically a nation of Shabbos goys. Clearly, Corbyn had turned the party into his personal neo-Nazi death cult and was planning to carry out a second Holocaust just as soon as he renationalized the British railways!

And it wasn’t just the United Kingdom. According to corporate media virologists, idiopathic anti-Semitism was breaking out everywhere. In France, the “Yellow Vests” were also anti-Semites. In the U.S.A., Jews were facing “a perfect storm of anti-Semitism,” some of it stemming from the neo-fascist fringe (which has been a part of the American landscape forever, but which the corporate media has elevated into an international Nazi movement), but much of it whipped up by Ilhan Omar, who had apparently entered into a “Red-Brown” pact with Richard Spencer, or Gavin McInnes, or some other formerly insignificant idiot.

Things got very confusing for a while, as Republicans united with Democrats to denounce Ilhan Omar as an anti-Semite (and possibly a full-fledged Islamic terrorist) and to condemn the existence of “hate,” or whatever. The corporate media, Facebook, and Twitter were suddenly swarming with hordes of angry anti-Semites accusing other anti-Semites of anti-Semitism. Meghan McCain couldn’t take it anymore, and she broke down on the Joy Behar Show and begged to be converted to Judaism, or Zionism, right there on the air. This unseemly display of anti-anti-Semitism was savagely skewered by Eli Valley, an “anti-Semitic” Jewish cartoonist, according to McCain and other morons.

Then it happened … perhaps the loudest popcorn fart in political history. The Mueller Report was finally delivered. And just like that, Russiagate was over. After three long years of manufactured mass hysteria, corporate media propaganda, books, T-shirts, marches, etc., Robert Mueller had come up with squat. Zip. Zero. Nichts. Nada. No collusion. No pee-tape. No secret servers. No Russian contacts. Nothing. Zilch.

Cognitive dissonance gripped the nation. There was beaucoup wailing and gnashing of teeth. Resistance members doubled their anti-depressant dosages and went into mourning. Shell-shocked liberals did their best to pretend they hadn’t been duped, again, by authoritative sources like The Washington Post, The New York Times, The Guardian, CNN, MSNBC, et al., which had disseminated completely fabricated stories about secret meetings which never took place, power grid hackings that never happened, Russian servers that never existed, imaginary Russian propaganda peddlers, and the list goes on, and on, and on … and hadn’t otherwise behaved like a bunch of mindless, shrieking neo-McCarthyites.

Except that Russiagate wasn’t over. It immediately morphed into “Obstructiongate.” As the corporate media spooks explained, Mueller’s investigation of Trump was never about collusion with Russia. No, it was always about Trump obstructing the investigation of the collusion with Russia that the investigation was not about, and that everyone knew had never happened. In other words, Mueller’s investigation was launched in order to investigate the obstruction of his investigation.

Or whatever. It didn’t really matter, because, by this time, Assange had been arrested for treason, or for jumping bail, or for smearing poo all over the walls of the Ecuadorean embassy, and The New York Times was reporting that a veritable “constellation” of social media accounts “linked to Russia and far-right groups” was disseminating extremist “disinformation,” and Putin had unleashed the Russian spywhale, and “Jews were not safe in Germany again,” because the Putin-Nazis had formed an alliance with the Iranian Nazis and the Syrian Nazis, who were backing the Palestinian Nazis that Antifa was fighting on behalf of Israel, and Jews were not safe in the UK either, because of Jeremy Corbyn, who Donald Trump (who, let’s all remember, is literally Hitler) was conspiring with a group of “unnamed Jewish leaders” to prevent from becoming prime minister, and Iran was conspiring with Hezbollah and al Qaeda to amass an arsenal of WMDs to launch at Israel and Saudi Arabia, and other peaceful Middle Eastern democracies, and Trump was finally going to go full-Hitler and declare martial law on the Fourth of July, and he was operating literal “concentration camps” where immigrants were being forced to drink out of toilets, which looked almost exactly the same as the “detention facilities” Obama had operated, except for … well, you know, the “fascism.” So who had time to worry about the corporate media colluding with an attempted Intelligence Community coup?

Then, in August, right on cue, some racist whack job murdered a bunch of people, and so now, as if the mass hysteria hadn’t already been jacked up to the max, America had “a white nationalist terrorist problem,” or was in the throes of a “white nationalist terrorism crisis.” Trump was now officially our “Nihilist-in-Chief,” and “a white supremacist who inspires terrorism” and was basically no different than Anwar al-Awlaki. It was time to take some extraordinary measures along the lines of the Patriot Act, except focused on potential white supremacist terrorists, or anyone the Editorial Board of The New York Times might deem a “threat.”

This sudden outbreak of “Trump-inspired terrorism” and the manufactured “fascism” hysteria that followed got the Resistance through end of the Summer and into the Autumn, which was always when the main event was scheduled to begin. See, these last three years have basically been a warm-up for what is about to happen … the impeachment, sure, but that’s only one part of it.

If you thought the global capitalist ruling classes and the corporate media’s methodical crushing of Jeremy Corbyn was depressing to watch … well, prepare yourself for 2020. The Year of Manufactured Mass Hysteria was not just the Intelligence Community and the corporate media getting their kicks by whipping the public up into an endless series of baseless panics over imaginary Russians and Nazis. It was the final phase of cementing the official “Putin-Nazi” narrative in people’s minds.

For the sake of anyone new to my columns, here’s how the Putin-Nazi narrative works …

The Putin-Nazi narrative has two basic parts, or messages, which are constantly repeated: (1) “Russia is attacking our democracy!; and (2) “fascism is spreading like wildfire!,” both of which parts are essentially fictions. This official Putin-Nazi narrative was introduced in the Summer of 2016, and replaced the official “War on Terrorism” narrative, which had run for fifteen years, and which was just as fictional. It has been methodically reinforced and repeated by the neoliberal establishment, the corporate media (and, more recently, the alternative media, and even by extremely intelligent anarchist anthropologists like David Graeber) for the last three years on a daily basis. At this point it has become our “reality,” just as the War on Terror became our “reality” … as the Cold War had previously been our “reality.”

When I say that this narrative has become our “reality,” I mean that it is now virtually impossible to refute it in any mainstream forum without being dismissed as a “conspiracy theorist,” or an “anti-Semite,” or a “Russian asset.” It has become axiomatic and is taken for granted that we are experiencing an explosion of anti-Semitism, and fascism, and that Russia is out to get us (so axiomatic that someone like Graeber falls into the trap of defending Corbyn by relying on, and thus reifying, the very “fascism” hysteria that was used to destroy him).

Never mind that the entire planet continues to be ruled by global capitalism, transnational corporations, and supra-governmental bodies, and that most of it is occupied by the U.S. military, NATO, and other GloboCap allies, and assorted corporate military contractors. Never mind that Russia isn’t “attacking” anyone, and that the “Nazis” haven’t taken over anything, and that no one is rounding up and murdering the Jews, or the Mexicans, or anyone else for that matter … because when have facts had anything to do with maintaining an official narrative?

The answer, in case you were wondering, is “never.” We are, all of us, living in a fiction. A fiction authored by those in power to serve the interests of those in power. That’s what an official narrative is. It makes no difference whether we believe it or not. It functions as “reality” regardless. If you doubt that … well, just ask Jeremy Corbyn. Or watch as the Labour “anti-Semitism crisis” evaporates into thin air, as the War on Terror did in 2016, once it no longer served a useful purpose.

As for 2020, I’m afraid the manufactured mass hysteria is only going to get worse. The global capitalist ruling classes are determined to snuff out this populist rebellion, and to make sure it never happens again, or at the very least not on this scale. Anyone who gets in the way is going to be branded an “anti-Semite,” or a “fascist,” or a “Russian asset.” Politicians who do not toe the line are going to have their political careers and personal reputations destroyed. (Did you notice how it took less than two days after the crushing of Jeremy Corbyn for the smearing of Sanders as an anti-Semite or “soft on anti-Semitism” to begin?)

Mainstream journalists who dare to question the official Putin-Nazi narrative, even in the most respectful way, are going to come under increasing pressure to tone it down or suffer the consequences. Putin-Nazi paranoia will metastasize. Dissident websites will be deplatformed and demonitized. The Internet will be increasingly monitored for any and all forms of non-conformity. Dissent will be increasingly stigmatized. “Reality” will be increasingly policed. It’s all going to get extremely unpleasant, and that’s assuming that civil war doesn’t break out.

And as for me, I’m just a political satirist with a barely respectable cult-sized following, so they’ll probably let me get away with continuing to cover the whole ugly show (as long as no one starts to take me seriously). I’ll try to find the humor in it, but honestly, just between you and me, what’s coming may not be all that funny.

Costs Are Spiraling Out of Control

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By Charles Hugh Smith

Source: Of Two Minds

And how do we pay for these spiraling out of control costs? By borrowing more, of course.

If we had to choose one “big picture” reason why the vast majority of households are losing ground, it would be: the costs of essentials are spiraling out of control. I’ve often covered the dynamics of stagnating income for the bottom 90%, and real-world inflation, i.e. a decline in purchasing power.

But neither of these dynamics fully describes the relentless upward spiral of the cost basis of our economy, that is, the cost of big-ticket essentials: housing, education and healthcare.

The costs of education are spiraling out of control, stripping households of income as an entire generation is transformed into debt-serfs by student loan debt. The soaring costs of healthcare are a core driver of higher costs in the education complex (and government in general), and to cover these higher costs, counties raise property taxes, which add additional cost burdens to households and enterprises as rents rise.

Rising rents push the cost structure of almost every enterprise and agency higher.

Then there’s the asset inflation created by central bank ZIRP (zero interest rate policy) which has inflated a second echo-bubble in housing that has pushed home ownership out of reach of many, adding demand for rental housing that has pushed rents into the stratosphere in Left and Right Coast cities.

The increasing dominance of monopolies and cartels has eliminated competition in sector after sector. Monopolies and cartels skim immense profits even as the value, quality and quantity of their products and services decline: The U.S. Only Pretends to Have Free Markets From plane tickets to cellphone bills, monopoly power costs American consumers billions of dollars a year.

Thanks to their political influence, monopolies and cartels have legalized looting, raising prices and evading anti-trust regulations because they can pay whatever it takes in our pay-to-play political system.

Let’s look at a few charts that illustrate the relentless rise in costs:

Do you reckon these two charts are connected–soaring costs and ballooning administrative payrolls?

Student loan debt is soaring above $1.5 trillion, guaranteeing profits to lenders and debt-serfdom to the students exiting with degrees that are in over-supply, i.e. possessing little scarcity value in an over-credentialed economy:

The echo housing bubbles in many locales exceed the nosebleed valuations of the previous bubble:

And how do we pay for these spiraling out of control costs? By borrowing more, of course:

Even at low rates of interest, the cost of servicing skyrocketing debt increases, leaving less net income to support additional borrowing.

What will it take to radically reduce the cost basis of our economy? A fundamental re-ordering that breaks up all the cartels and monopolies that push prices higher even as they deliver lower quality goods and services would be a good start.

Get Ready For An Economic Wake-Up Call This Holiday Season

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By Brandon Smith

Source: Alt-Market.com

If we are to measure the concept of “economic recovery” in real terms, then we would have to look at the fundamentals (not stock markets) and whether or not they’re improving. Unfortunately, not all economic data is presented to the public honestly. Very often it is mired and obscured in a fog of disinformation and false standards.

I would point out, though, that there is relatively accurate information out there in certain areas of the global economy, and it tells us our economic structure is destabilizing. Beyond that, even the rigged numbers are moving into negative territory. But what does all this mean for the holiday retail season, one of the mainstream’s favorite gauges of US financial health? And, if 2019’s holiday profits sink, what does this tell us is going to happen in 2020?

First, let’s start with what we know…

Since we live in a “globalized” economy where everything is supposedly “interdependent”, it helps to examine international export numbers. The US doesn’t manufacture and export much of anything anymore beyond agricultural products, but global markets do expect us to consume the goods of other nations. A decline in exports indicates a failing global economy, but in particular a failing US consumer economy.

The obvious example would be China, which has seen plunging export data at least the past three months, though many will argue that this is merely due to tariffs and the trade war. However, it’s not just China that is showing signs of collapse.

South Korea, another major manufacturing and export hub in Asia (5th largest in the world) has seen declining exports for 11 consecutive months. South Korean shipping is crumbling in November and the media is blaming the trade war, as some SK companies would be “hit indirectly” because they sell intermediate goods to China are are linked to US companies in China. But this makes little sense. Tariffs are highly targeted to specific companies and specific goods, and so far the US has not directed major tariff attention at South Korea beyond the auto market.  Also, the new KORUS deal between Trump and SK is different only cosmetically to original trade agreements, yet, South Korean exports continue to fall.

The same situation can be seen in Japan, with Japanese exports witnessing a 9.2% year-over-year drop in October, the largest decline in 3 years. Japan has seen three consecutive months of declines in exports.

And what about Europe? While Germany, the manufacturing powerhouse of the EU, finally saw a jump in exports to the US this past month, overall the European Union has seen consistently poor export performance for the past year, and Germany itself is hovering on the edge of recession with 0.1% official GDP growth. Many economist already consider Germany to be in recession, as official GDP numbers are constantly manipulated by governments to the upside.

But let’s not forget about the US. Remember how Trump promised that the trade war would result in a renaissance for US manufacturing and that millions of industrial jobs would be returning to our shores? Well, as I’ve warned consistently for the past couple years, there is NO WAY corporations will be bringing manufacturing jobs and factories back to the US without ample incentives. Trump already gave companies tax cuts without demanding anything in return, and the cost/benefit ratio of building new factories and paying American workers top dollar versus keeping existing factories in Asia and dealing with 10%-25% tariffs just doesn’t add up to a new US rust belt renaissance.

While manufacturing jobs have increased, US manufacturing activity has declined.  Meaning, there simply isn’t enough demand for the goods being produced.  US manufacturing ISM index just sank this month and has been sinking for the past four month into negative territory. While US PMI manufacturing data jumped this month, it is still well below the 10 year average and is also very low compared to past holiday seasons, which almost always see a spike in manufacturing.  US manufacturing remains at a historic low of 11% of US GDP and production output has decline steadily since January of this year.

The question is, will the vast decline in global manufacturing translate to a crash in consumer demand?  We know that US credit dependency has skyrocketed in the past few years, but will more debt result in more profits for retailers?  This is highly unlikely, as US retail sales growth, for example, has been in decline at the same time that consumer debt has been rising.  Why?  Credit delinquencies have been relatively stable (so far) this year, so my theory is that people in the US are paying off previous debts by taking on new debt. They are kicking the can on their insolvency.

We have seen this kind of destructive credit death cycle before – Right before the crash of 2008.

So what does all this mean? And why is the media portraying the trade war with China as the cause of the global export and shipping crisis when clearly most of the world is not directly or even indirectly tied to the tariffs?

As noted above, the narrative that is being pushed is that we live in an “interdependent” and globalized world, and that nations cannot function economically without cooperation. The trade war, I believe, is a smokescreen designed by the globalist establishment to do two things specifically:

1) It is being created to hide a crash in the greater economy. Notice that almost no one in the mainstream is talking about a collapse in global production and multiple fundamentals due to DEMAND; instead they constantly talk about the trade war and exports. The trade war is becoming the scapegoat for the implosion of the market bubble engineered by globalists and central banks through a decade of stimulus measures.

The collapse of the economic bubble is being caused in part by massive debt and a lack of consumer demand due to lack of consumer savings and cash flow. The trade war has little to do with it, and I suspect we would be seeing sharp declines in the US economy in particular even without the trade war.

2) The trade war creates a false dichotomy in which many Americans will be lured into blaming China and other nations for their economic ills, and China and the rest of the world will be lured into blaming America. It also reasserts the globalist propaganda argument that when nations and economies “go rogue”, they hurt everyone; therefore, more global controls and centralization will have to be established in order to prevent nationalism from harming the rest of the world.

And what does this all have to do with the Christmas shopping season? Like the end of last year, I think we are in for another ugly holiday retail event – Perhaps far worse than before. All the manufacturing and export data indicates that this will be the case. If so, then the mainstream narrative of recovery, long perpetuated as fact by the media and the Federal Reserve for the past several years, will finally die.

The only thing that might elevate holiday numbers would be increased price inflation in goods, but I predict that even inflation misrepresented as “profits” will not save Christmas stats this year.  Some skeptics of the ongoing crash will argue that Black Friday numbers this year were the best since 2013, therefore the holiday season will be a good one.  These people don’t know their economic history.  In most cases, holiday seasons that start off with a high traffic Black Friday end with poor overall sales data, including 2013.  This is because consumers that are cash strapped are more likely to buy early during Black Friday sales and spend far less over the rest of the season.

In the mind of the average American consumer, holiday retail sales are a primary indicator of the health of the economy. A dramatic crash in Christmas retail will end the delusion of a stable US system and cause the public to start asking questions. Economics is 50% math and 50% psychology. The math in the US economy says we are in the middle of a crash. The psychological orientation of the public has been on the opposite end of spectrum, but is now slowly moving to meet with reality. When the psychological delusion ends, the game is over. And, for the globalists a new game begins.

Order out of chaos is their motto for a reason…

The global “reset” as they sometimes refer to it, has already been triggered. Going into 2020, the question is will the fantasy fall completely away to reveal the grotesque economic swamp our foundation has been built on top of? Or, will the delusion drag on for at least one more year? Given the current data, I suspect the party is over. But it is difficult to predict how the public will react to a financial crash. Sometimes people have no choice but to acknowledge the danger in front of them, but sometimes they simply bury their heads in the sand deeper and hope that by dragging out the inevitable the inevitable will become forgettable.

This holiday season, American workers have little to celebrate

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By Danny Haiphong

Source: Intrepid Report

Every year, much of the U.S. population celebrates Thanksgiving and Christmas to show appreciation for their families and friends. Thanksgiving normalizes the colonial origins of the United States and erases the brutality of the English settlers who massacred indigenous people to prepare the land for capitalist accumulation. Christmas is the annual holiday of big business. On no other day are workers more encouraged to spend their wages on the latest consumer product to gift to their loved ones. The holidays bring with them a deep pressure to be merry. Yet on this holiday season, workers have little to celebrate.

A new study by Brookings Institution provides a snapshot into the devastation wrought on the working class by American capitalism. Forty-four percent of all workers between the ages of 18-64 are employed in low-wage sectors and earn an average of $16 or less per hour. The study excluded workers who logged over 98 hours per week over the last year as well as certain sections of the college-educated population such as those living in dormitories and attending graduate school. Had these groups of workers been counted, the percentage of low-wage workers out of the total population would likely be even higher. This verifies prior datasets which proved that around half of the U.S. population makes less $30,000 per year.

The growing poverty of the American worker is a major contributor to the growth of toxic stress and mental illness. Half of all U.S. adults will develop a mental illness over the course of their life. Serious mental health conditions afflict nearly ten million people in the United States and over a quarter of these individuals live below the official poverty line. Suicide rates are at a thirty-year high. An obvious connection exists between rising poverty and the worsening mental health of the American worker.

Workers in the United States see no future under the current stage of capitalism. They struggle to afford rent in a nation where the federal minimum wage cannot pay for a two-bedroom apartment anywhere in the country. They indebt themselves in the trillions to attend college and obtain healthcare. They work in redundant, service sector jobs where hours are long and mistreatment, abuse, and injury are all too common. The American worker is increasingly alienated from themselves and each other. Union density rates in the U.S. have fallen to just ten percent of all workers since World War II.

The shrinking labor movement has followed a larger trend in U.S. society. Privatization has decimated the public sector. Workers have few places to socially convene independent of the machinations of consumer capitalism. Workers are competing for fewer jobs, most of which are not worth competing for at all. Homelessness, mass incarceration, and endless war remind workers that they can easily be turned into cannon fodder if they step out of line. In such an environment, addiction and self-destruction is encouraged while organizing for justice is discouraged.

Economic insecurity and alienation place more pressure on families to make up for stagnant wages and exorbitant amounts of debt. More young workers are living with their parents than at any other time in the last one hundred years. Older workers are not only forestalling retirement but also finding themselves without family or community support as siblings and adult children chase the highest paying jobs and the lowest rents and property values. Couples feel compelled to remain in toxic relationships for economic reasons. A strong link exists between domestic violence and poverty.

Contrary to the messages in Hallmark cards or the corporate media, the holidays are far from a time of celebration. Many workers view the holiday season as a harsh reminder of the loss, alienation, and despair that they’ve experienced over the course of their lives. Holidays place added pressure on workers to dismiss the ills of capitalism and the personal stressors associated with them. It should come as no surprise that most workers already struggling with mental health conditions report that the holidays only worsen their symptoms. Instead of embracing humanity, the holidays encourage workers to embrace rampant commercialism and the nuclear family.

To break from a culture steeped in the profit motive, workers will need to create their own traditions based upon solidarity and social transformation. Not everything about the holidays needs to be thrown out in the process. Spending time with family and friends during a day off from work can and should be rewarding to the psyche and to society. The conditions of capitalism prevent the holidays from serving a social purpose. Holidays under capitalism breed despair but brand themselves as moments of pure joy.

While workers may have little to celebrate this holiday season, there are reasons for the working class to be optimistic in the years to come. Teachers in cities such as Chicago and Los Angeles have won key gains in 2019 by using the most powerful weapon at the disposal of organized labor: the strike. At the beginning of the year, the Los Angeles Teachers won smaller class sizes and more support staff. The Chicago Teachers Union massively increased the number of nurses in the school district by forcing the city to hire nurses rather than continue the inefficient and harmful practice of hiring private contractors. The UAW’s strike of General Motors (GM) earlier this Fall made global headlines even if it was unable to win every demand that the workers put forth. These strikes reflect a growth of class consciousness in the United States. The continued growth of class consciousness will be critical toward building the kind of struggle capable of bringing about massive political and economic change for the working class.

Furthermore, workers around the world are leading the way in the struggle against class inequality and foreign-sponsored wars. Massive protests in Haiti, Chile, Honduras, and Algeria are just a few of many occurring around the globe. The protests have mainly targeted repressive U.S.-backed governments and their neoliberal economic agenda. China is leading the world in poverty reduction. Cuba is the most sustainably developed nation in the world. A vast majority of workers around the world want to see an end of the miseries imposed by global capital and are actively fighting to make their demands a reality.

The question is whether workers in the United States can decisively break from the despair, the racism, and the extreme alienation shaping their current condition. Being determines consciousness. At this moment, the neoliberal race to the bottom has rendered most workers too fearful, disorganized, and full of self-blame to fight back. However, millions of workers have rallied behind the political campaign of Bernie Sanders. Labor unrest is likely to continue as neither political party appears interested in implementing Bernie Sanders’ social democratic agenda. Workers in the United States are in desperate need of a revived labor movement to quench their thirst for a better life. Putting our energies into building this movement will go a long way toward shaking the Holiday Blues and giving workers something to really celebrate: a society run by workers, in the interests of workers.

Corporate America Is an Anti-Social Black Plague: Negative Network Effects Run Amok

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By Charles Hugh Smith

Source: Of Two Minds

The anti-social carnage unleashed by Corporate America’s “lock-in” / negative network effects has no real limits.

Here’s the U.S.economy in a nutshell: Corporate America is an anti-social Black Plague, gorging on cartel-monopoly profits reaped from negative network effects running amok, enriching the few at the expense of the many and concentrating political power in the hands of the most rapacious, anti-democratic corporate sociopaths.

Let’s start with network effects: the conventional definition is “When a network effect is present, the value of a product or service increases according to the number of others using it.”

So for example, when telephone service was only available to a few users, its value was limited. As more people obtained telephone service, the value of the network increased to both its owners and to users, who could reach more people and conduct commerce more easily as a result of having telephone service.

In the conventional analysis, negative network effects occur from “congestion,” i.e. the network is adding new users so quickly that “more users make a product less valuable.”

But this superficial analysis misses the fatally anti-social consequences of corporate negative network effects, a dynamic described by analyst Simons Chase in this essay. Here is an excerpt:

Even the most imaginative and far-reaching narratives about non-obvious economic fragility and off balance sheet risks are mere rants without constructive ideas about causes and solutions.

Consider network effects, the popular economic construct applied to market concentration and increasing returns for strategies pursued by some leading tech companies. This dynamic economic agent is also known as demand side economies of scale.

W. Brian Arthur, the economist credited with first developing the theory, described the condition of increasing returns as a game of strategic positioning and building up a user base to the point where ‘lock in’ of dominant players occurs. Companies able to tap network effects have been rewarded with huge valuations and highly defensible businesses.

But what about negative network effects? What if the same dynamic applies to the U.S.’s pay-to-play political industry where the government promotes or approves of something through a policy, subsidy or financial guarantee due to private sector influence.

Benefits accrue only to the purchaser of the network effects, and consumers, induced by the false signal of large network size, ultimately suffer from asymmetric risk and experience what I’m calling a loss of intangible net worth for each additional member after the ‘bandwagon’ wares off.

If this were the case, then you would see companies experience rapid revenue growth (out of line with traditional asset leverage models), executives accumulating huge fortunes and political campaign coffers swelling.

But the most striking feature would be the anti-social outcomes, the ones not available without the instant critical mass of government-supported network effects, the ones that, at scale, monetize a society’s intangible net worth.

Some products tied to these metrics include: prescriptions drugs, junk food targeting children, mortgages, diplomas, and social media. The list of industries that are likely to have gained through the purchasing of network effects in D.C. maps closely to the decay that is visible in U.S. society.

The loss of intangible capital and other manifestations of non-obvious economic fragility (to use Simons’ apt phrase) is the subject of my latest book, Will You Be Richer or Poorer? Profit, Power and A.I. in a Traumatized World, in which I catalog the anti-social consequences of negative network effects and other forces eroding our nation’s intangible capital.

Consider Facebook, a classic case of negative network effects running amok, creating immensely anti-social consequences while reaping billions in profits: Facebook isn’t free speech, it’s algorithmic amplification optimized for outrage (TechCrunch.com).

The full social cost of social media’s negative network effects are difficult to tally, but studies have found that loneliness and alienation are correlated to how many hours a day individuals spend on social media. (An Internet search brings up dozens of reports such as NPR’s Feeling Lonely? Too Much Time On Social Media May Be Why.)

Facebook is trying to leverage its social media “lock-in” to issue its own global currency and both Facebook and Google are trying to offer banking services without any of the pesky regulations imposed on legitimate banks. (Will $10 million in lobbying do the trick? How about $100 million? We’ve got billions to “invest” in corrupting and controlling public agencies and political power.)

Once Corporate America locks in cartel-monopoly power, i.e. you have to use our services and products, the corporate sociopaths use their billions in market cap and profits to buy the sociopaths in government. Pay-to-play is the real political machinery; “democracy” is the PR fig-leaf to mask the private sector “lock-in” (monopoly) and the public-sector “lock-in” (regulatory influence, anti-competitive barriers to entry, the legalization of corporate fraud, cooking the books, embezzlement, etc.)

Consider Boeing, an effective monopoly which used $12 billion in profits to buy back its own shares and “invested” millions in buying political influence so it could minimize public-sector oversight.

Rather than spend the $12 billion designing a new safe aircraft, Boeing cobbled together a fatally flawed design dependent on software, as described in The Case Against Boeing (The New Yorker) to maximize the profitability of its “lock-in”.

Google is running amok on so many levels, it’s difficult to keep track of its anti-social “let’s be evil, it’s so incredibly profitable” agenda: Google’s Secret ‘Project Nightingale’ Gathers Personal Health Data on Millions of Americans (Wall Street Journal). The goal, of course, is to reap more billions in profits for insiders and corporate sociopaths.

The anti-social carnage unleashed by Corporate America’s “lock-in” / negative network effects has no real limits. Consider the essentially limitless private and social damage caused by Big Tech: Child Abusers Run Rampant as Tech Companies Look the Other Way (New York Times).

Then there’s the opioid epidemic, whose casualties run into the hundreds of thousands, an epidemic that was entirely a creature of Corporate America seeking to maximize “lock-in” profits by buying regulatory approval and pushing false claims that the corporate products were safe and non-addictive.

Note the media sources of these reports: these are the top tier of American journalism, not some easily dismissed alt-media source.

What does this tell us? It tells us the anti-social consequences are now so extreme and so apparent that the corporate media cannot ignore them. Once Corporate America locks-in market, financial and political power, it acts as a virulent Black Plague on the social order, legitimate democracy, and an entire spectrum of intangible social capital including the rule of law.

As Simons put it: “The ethical dimension underpinning the whole system is this: what’s moral is what’s legal and what’s legal is for sale.” Where does this Black Plague pathology take us? To a collapse of the status quo which enabled it, cheered it, and so richly rewarded it.

Political Collapse: The Center Cannot Hold

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By Kirkpatrick Sale

Source: CounterPunch

Have you noticed? From Hong Kong to Baghdad, Paris to Tehran, 2019 is shaping up to be, as the New York Times dubbed it, “the year of the protest.” Violent—and often deadly—anti-government protests are breaking out throughout the world in an unprecedented fashion, in rich countries as well as poor, as people everywhere are expressing their anger at corrupt, inefficient, brutal, and unresponsive regimes.

But what isn’t so much in the news is worse—worse enough that they don’t want to tell you. At the moment, there are no less than 65 countries are now fighting wars—there are only 193 countries recognized by the United Nations, so that’s a third of the world. These are wars with modern weapons, organized troops, and serious casualties—five of them, like Afghanistan, Libya, Syria, Somalia, and Yemen, with 10,000 or more deaths a year, another 15 with more than 1,000 a year—all of them causing disruptions and disintegrations of all normal political and economic systems, leaving no attacked nation in a condition to protect and provide for its citizens. From 2015 to 2019 more state-based conflicts were engaged in than at any time since World War II, with an estimated 1 million deaths in all.

In addition, there are at least 638 other conflicts between various insurgent and separatist militias, armed drug bands, and terrorist organizations, increasing each year as states fail or collapse completely.

What has made the wars and internal disputes even more egregious as the years go on is that chaotic weather has a direct effect on how societies function. Agriculture, of course, is impacted by higher temperatures, lack of rain, droughts, and wildfires, and crops have failed in many places over the last five years, including North and Central Africa, the Middle East, India, Pakistan, northern China, northern Europe, Argentina, Brazil, Central America, and even parts of North America. The collapse of Syria, for example, and subsequent civil wars were made more devastating if not directly caused by the drought of 2006-2011, in which 75 per cent of the farms failed and 85 per cent of the livestock died. And an official United Nations report in 2019, by 100 experts from 52 countries, warned that things will only get worse, with the world’s land and water resources exploited at “unprecedented rates,” threatening “the ability of humanity to feed itself.”

One obvious consequence, beyond death, famine, disease and starvation, is, as the U.N. report’s lead author says, “a massive pressure for migration,” a desperate attempt to find some refuge and relief when homes have been destroyed and families are uprooted. According to the United Nations, in what I regard as a certain undercount, in 2019 there were 272 million migrants worldwide, up from 258 million in 2017, with the weather in 2019 causing more refugees even than warfare. (The unprecedented crisis at the U.S. southern border in 2019 is only one manifestation of the porous and chaotic collapse of boundaries across the Americas, Africa, and most of Asia.) And meanwhile, the International Committee of the Red Cross in 2018 estimated that more than 100,000 people are simply “missing,” a figure it admits “represents only a fraction” of those who are unaccounted for by any government or organization.

Given the turmoil over wars and immigration threats, it is not surprising that half the world is without coherent government.

Organizations that track these things say that of the 174 covered nations, 76 are in various stages of collapse—that would be 43 per cent—and that excludes a dozen smaller nations that are locked into autocracy and poverty. These include seven completely failed states—Congo-Brazzaville, Central African Republic, Syria, Yemen, Somalia, South Sudan, and Venezuela—and another seven that are on the edge—Guinea, Haiti, Iraq, Zimbabwe, Afghanistan, Chad, and the Sudan—plus 19 that are in an “alert” category, meaning that some but not all government functions have failed, 15 in Africa and 4 in Asia.

In other words, many political systems in the world have effectively collapsed, people are dispossessed and without governments, and almost everywhere else, including the U.S. and Europe, governments are severely strained and political rifts abound. The vote for Brexit in the U.K., the election of Donald Trump (and the subsequent attempts to overturn it), the turmoil that erupted in December 2018 in France and Belgium, the continued protests in Poland were all examples of the population of developed nations coming to see that the attempt to establish capitalist-led democracies in an internationalist arrangement of benefit to corporate and banking interests just was not working, and a rising segment of what were called “deplorables” in America did not want any longer to be powerless, manipulated, and disdained. These turmoils also demonstrated that the established powers in these countries, especially the U.S. and Britain, resisted all of these attempts to change the status quo and in effect ignored or tried to thwart the popular will (cf. the “impeachment” farce)—the developed world’s form of the failed state. Those fissures have widened as the years have worn on, and as one astute observer, James Kunstler, put it in 2019, “The West is enduring paroxysms of political uproar and disenchantment.”

And here’s something weird that sums it all up. It is the opinion of two recent political scientists that “the state system seems to be failing all over the world,” and they have proposed a new study called “archy” to examine how to grow, maintain, and fund states so as to avert their collapse. No better evidence of the seriousness of the world’s “uproar and disenchantment” can there be when academics need to create a discipline to overcome it.

Yeats summed it up some years ago: “The center cannot hold. Mere anarchy is loosed upon the world.”

 

Kirkpatrick Sale’s new book The Collapse of 2020 will be published in January.