The Great Ponzi Scheme of the Global Economy

Posted on August 18, 2016 by Reid Mukai

By Michael Hudson and Chris Hedges

CHRIS HEDGES: We’re going to be discussing a great Ponzi scheme that not only defines not only the U.S. but the global economy, how we got there and where we’re going. And with me to discuss this issue is the economist Michael Hudson, author of Killing the Host: How Financial Parasites and Debt Destroy the Global Economy. A professor of economics who worked for many years on Wall Street, where you don’t succeed if you don’t grasp Marx’s dictum that capitalism is about exploitation. And he is also, I should mention, the godson of Leon Trotsky.

I want to open this discussion by reading a passage from your book, which I admire very much, which I think gets to the core of what you discuss. You write,

“Adam Smith long ago remarked that profits often are highest in nations going fastest to ruin. There are many ways to create economic suicide on a national level. The major way through history has been through indebting the economy. Debt always expands to reach a point where it cannot be paid by a large swathe of the economy. This is the point where austerity is imposed and ownership of wealth polarizes between the One Percent and the 99 Percent. Today is not the first time this has occurred in history. But it is the first time that running into debt has occurred deliberately.” Applauded. “As if most debtors can get rich by borrowing, not reduced to a condition of debt peonage.”

So let’s start with the classical economists, who certainly understood this. They were reacting of course to feudalism. And what happened to the study of economics so that it became gamed by ideologues?

HUDSON: The essence of classical economics was to reform industrial capitalism, to streamline it, and to free the European economies from the legacy of feudalism. The legacy of feudalism was landlords extracting land-rent, and living as a class that took income without producing anything. Also, banks that were not funding industry. The leading industrialists from James Watt, with his steam engine, to the railroads …

HEDGES: From your book you make the point that banks almost never funded industry.

HUDSON: That’s the point: They never have. By the time you got to Marx later in the 19th century, you had a discussion, largely in Germany, over how to make banks do something they did not do under feudalism. Right now we’re having the economic surplus being drained not by the landlords but also by banks and bondholders.

Adam Smith was very much against colonialism because that lead to wars, and wars led to public debt. He said the solution to prevent this financial class of bondholders burdening the economy by imposing more and more taxes on consumer goods every time they went to war was to finance wars on a pay-as-you-go basis. Instead of borrowing, you’d tax the people. Then, he thought, if everybody felt the burden of war in the form of paying taxes, they’d be against it. Well, it took all of the 19th century to fight for democracy and to extend the vote so that instead of landlords controlling Parliament and its law-making and tax system through the House of Lords, you’d extend the vote to labor, to women and everybody. The theory was that society as a whole would vote in its self-interest. It would vote for the 99 Percent, not for the One Percent.

By the time Marx wrote in the 1870s, he could see what was happening in Germany. German banks were trying to make money in conjunction with the government, by lending to heavy industry, largely to the military-industrial complex.

HEDGES: This was Bismarck’s kind of social – I don’t know what we’d call it. It was a form of capitalist socialism…

HUDSON: They called it State Capitalism. There was a long discussion by Engels, saying, wait a minute. We’re for Socialism. State Capitalism isn’t what we mean by socialism. There are two kinds of state-oriented–.

HEDGES: I’m going to interject that there was a kind of brilliance behind Bismarck’s policy because he created state pensions, he provided health benefits, and he directed banking toward industry, toward the industrialization of Germany which, as you point out, was very different in Britain and the United States.

HUDSON: German banking was so successful that by the time World War I broke out, there were discussions in English economic journals worrying that Germany and the Axis powers were going to win because their banks were more suited to fund industry. Without industry you can’t have really a military. But British banks only lent for foreign trade and for speculation. Their stock market was a hit-and-run operation. They wanted quick in-and-out profits, while German banks didn’t insist that their clients pay as much in dividends. German banks owned stocks as well as bonds, and there was much more of a mutual partnership.

That’s what most of the 19^th century imagined was going to happen – that the world was on the way to socializing banking. And toward moving capitalism beyond the feudal level, getting rid of the landlord class, getting rid of the rent, getting rid of interest. It was going to be labor and capital, profits and wages, with profits being reinvested in more capital. You’d have an expansion of technology. By the early twentieth century most futurists imagined that we’d be living in a leisure economy by now.

HEDGES: Including Karl Marx.

HUDSON: That’s right. A ten-hour workweek. To Marx, socialism was to be an outgrowth of the reformed state of capitalism, as seemed likely at the time – if labor organized in its self-interest.

HEDGES: Isn’t what happened in large part because of the defeat of Germany in World War I? But also, because we took the understanding of economists like Adam Smith and maybe Keynes. I don’t know who you would blame for this, whether Ricardo or others, but we created a fictitious economic theory to praise a rentier or rent-derived, interest-derived capitalism that countered productive forces within the economy. Perhaps you can address that.

HUDSON: Here’s what happened. Marx traumatized classical economics by taking the concepts of Adam Smith and John Stuart Mill and others, and pushing them to their logical conclusion. Progressive capitalist advocates – Ricardian socialists such as John Stuart Mill – wanted to tax away the land or nationalize it. Marx wanted governments to take over heavy industry and build infrastructure to provide low-cost and ultimately free basic services. This was traumatizing the landlord class and the One Percent. And they fought back. They wanted to make everything part of “the market,” which functioned on credit supplied by them and paid rent to them.

None of the classical economists imagined how the feudal interests – these great vested interests that had all the land and money – actually would fight back and succeed. They thought that the future was going to belong to capital and labor. But by the late 19^th century, certainly in America, people like John Bates Clark came out with a completely different theory, rejecting the classical economics of Adam Smith, the Physiocrats and John Stuart Mill.

HEDGES: Physiocrats are, you’ve tried to explain, the enlightened French economists.

HUDSON: The common denominator among all these classical economists was the distinction between earned income and unearned income. Unearned income was rent and interest. Earned incomes were wages and profits. But John Bates Clark came and said that there’s no such thing as unearned income. He said that the landlord actually earns his rent by taking the effort to provide a house and land to renters, while banks provide credit to earn their interest. Every kind of income is thus “earned,” and everybody earns their income. So everybody who accumulates wealth, by definition, according to his formulas, get rich by adding to what is now called Gross Domestic Product (GDP).

HEDGES: One of the points you make in Killing the Host which I liked was that in almost all cases, those who had the capacity to make money parasitically off interest and rent had either – if you go back to the origins – looted and seized the land by force, or inherited it.

HUDSON: That’s correct. In other words, their income is unearned. The result of this anti-classical revolution you had just before World War I was that today, almost all the economic growth in the last decade has gone to the One Percent. It’s gone to Wall Street, to real estate …

HEDGES: But you blame this on what you call Junk Economics.

HUDSON: Junk Economics is the anti-classical reaction.

HEDGES: Explain a little bit how, in essence, it’s a fictitious form of measuring the economy.

HUDSON: Well, some time ago I went to a bank, a block away from here – a Chase Manhattan bank – and I took out money from the teller. As I turned around and took a few steps, there were two pickpockets. One pushed me over and the other grabbed the money and ran out. The guard stood there and saw it. So I asked for the money back. I said, look, I was robbed in your bank, right inside. And they said, “Well, we don’t arm our guards because if they shot someone, the thief could sue us and we don’t want that.” They gave me an equivalent amount of money back.

Well, imagine if you count all this crime, all the money that’s taken, as an addition to GDP. Because now the crook has provided the service of not stabbing me. Or suppose somebody’s held up at an ATM machine and the robber says, “Your money or your life.” You say, “Okay, here’s my money.” The crook has given you the choice of your life. In a way that’s how the Gross National Product accounts are put up. It’s not so different from how Wall Street extracts money from the economy. Then also you have landlords extracting …

HEDGES: Let’s go back. They’re extracting money from the economy by debt peonage. By raising …

HUDSON: By not playing a productive role, basically.

HEDGES: Right. So it’s credit card interest, mortgage interest, car loans, student loans. That’s how they make their funds.

HUDSON: That’s right. Money is not a factor of production. But in order to have access to credit, in order to get money, in order to get an education, you have to pay the banks. At New York University here, for instance, they have Citibank. I think Citibank people were on the board of directors at NYU. You get the students, when they come here, to start at the local bank. And once you are in a bank and have monthly funds taken out of your account for electric utilities, or whatever, it’s very cumbersome to change.

So basically you have what the classical economists called the rentier class. The class that lives on economic rents. Landlords, monopolists charging more, and the banks. If you have a pharmaceutical company that raises the price of a drug from $12 a shot to $200 all of a sudden, their profits go up. Their increased price for the drug is counted in the national income accounts as if the economy is producing more. So all this presumed economic growth that has all been taken by the One Percent in the last ten years, and people say the economy is growing. But the economy isn’t growing …

HEDGES: Because it’s not reinvested.

HUDSON: That’s right. It’s not production, it’s not consumption. The wealth of the One Percent is obtained essentially by lending money to the 99 Percent and then charging interest on it, and recycling this interest at an exponentially growing rate.

HEDGES: And why is it important, as I think you point out in your book, that economic theory counts this rentier income as productive income? Explain why that’s important.

HUDSON: If you’re a rentier, you want to say that you earned your income by …

HEDGES: We’re talking about Goldman Sachs, by the way.

HUDSON: Yes, Goldman Sachs. The head of Goldman Sachs came out and said that Goldman Sachs workers are the most productive in the world. That’s why they’re paid what they are. The concept of productivity in America is income divided by labor. So if you’re Goldman Sachs and you pay yourself $20 million a year in salary and bonuses, you’re considered to have added $20 million to GDP, and that’s enormously productive. So we’re talking in a tautology. We’re talking with circular reasoning here.

So the issue is whether Goldman Sachs, Wall Street and predatory pharmaceutical firms, actually add “product” or whether they’re just exploiting other people. That’s why I used the word parasitism in my book’s title. People think of a parasite as simply taking money, taking blood out of a host or taking money out of the economy. But in nature it’s much more complicated. The parasite can’t simply come in and take something. First of all, it needs to numb the host. It has an enzyme so that the host doesn’t realize the parasite’s there. And then the parasites have another enzyme that takes over the host’s brain. It makes the host imagine that the parasite is part of its own body, actually part of itself and hence to be protected.

That’s basically what Wall Street has done. It depicts itself as part of the economy. Not as a wrapping around it, not as external to it, but actually the part that’s helping the body grow, and that actually is responsible for most of the growth. But in fact it’s the parasite that is taking over the growth.

The result is an inversion of classical economics. It turns Adam Smith upside down. It says what the classical economists said was unproductive – parasitism – actually is the real economy. And that the parasites are labor and industry that get in the way of what the parasite wants – which is to reproduce itself, not help the host, that is, labor and capital.

HEDGES: And then the classical economists like Adam Smith were quite clear that unless that rentier income, you know, the money made by things like hedge funds, was heavily taxed and put back into the economy, the economy would ultimately go into a kind of tailspin. And I think the example of that, which you point out in your book, is what’s happened in terms of large corporations with stock dividends and buybacks. And maybe you can explain that.

HUDSON: There’s an idea in superficial textbooks and the public media that if companies make a large profit, they make it by being productive. And with …

HEDGES: Which is still in textbooks, isn’t it?

HUDSON: Yes. And also that if a stock price goes up, you’re just capitalizing the profits – and the stock price reflects the productive role of the company. But that’s not what’s been happening in the last ten years. Just in the last two years, 92 percent of corporate profits in America have been spent either on buying back their own stock, or paid out as dividends to raise the price of the stock.

HEDGES: Explain why they do this.

HUDSON: About 15 years ago at Harvard, Professor Jensen said that the way to ensure that corporations are run most efficiently is to make the managers increase the price of the stock. So if you give the managers stock options, and you pay them not according to how much they’re producing or making the company bigger, or expanding production, but the price of the stock, then you’ll have the corporation run efficiently, financial style.

So the corporate managers find there are two ways that they can increase the price of the stock. The first thing is to cut back long-term investment, and use the money instead to buy back their own stock. But when you buy your own stock, that means you’re not putting the money into capital formation. You’re not building new factories. You’re not hiring more labor. You can actually increase the stock price by firing labor.

HEDGES: That strategy only works temporarily.

HUDSON: Temporarily. By using the income from past investments just to buy back stock, fire the labor force if you can, and work it more intensively. Pay it out as dividends. That basically is the corporate raider’s model. You use the money to pay off the junk bond holders at high interest. And of course, this gets the company in trouble after a while, because there is no new investment.

So markets shrink. You then go to the labor unions and say, gee, this company’s near bankruptcy, and we don’t want to have to fire you. The way that you can keep your job is if we downgrade your pensions. Instead of giving you what we promised, the defined benefit pension, we’ll turn it into a defined contribution plan. You know what you pay every month, but you don’t know what’s going to come out. Or, you wipe out the pension fund, push it on to the government’s Pension Benefit Guarantee Corporation, and use the money that you were going to pay for pensions to pay stock dividends. By then the whole economy is turning down. It’s hollowed out. It shrinks and collapses. But by that time the managers will have left the company. They will have taken their bonuses and salaries and run.

HEDGES: I want to read this quote from your book, written by David Harvey, in A Brief History of Neoliberalism, and have you comment on it.

“The main substantive achievement of neoliberalism has been to redistribute rather than to generate wealth and income. [By] ‘accumulation by dispossession’ I mean … the commodification and privatization of land, and the forceful expulsion of peasant populations; conversion of various forms of property rights (common collective state, etc.) into exclusive private property rights; suppression of rights to the commons; … colonial, neocolonial, and the imperial processes of appropriation of assets (including natural resources); … and usury, the national debt and, most devastating at all, the use of the credit system as a radical means of accumulation by dispossession. … To this list of mechanisms, we may now add a raft of techniques such as the extraction of rents from patents, and intellectual property rights (such as the diminution or erasure of various forms of common property rights, such as state pensions, paid vacations, and access to education, health care) one through a generation or more of class struggle. The proposal to privatize all state pension rights, pioneered in Chile under the dictatorship is, for example, one of the cherished objectives of the Republicans in the US.”

This explains the denouement. The final end result you speak about in your book is, in essence, allowing what you call the rentier or the speculative class to cannibalize the entire society until it collapses.

HUDSON: A property right is not a factor of production. Look at what happened in Chicago, the city where I grew up. Chicago didn’t want to raise taxes on real estate, especially on its expensive commercial real estate. So its budget ran a deficit. They needed money to pay the bondholders, so they sold off the parking rights to have meters – you know, along the curbs. The result is that they sold to Goldman Sachs 75 years of the right to put up parking meters. So now the cost of living and doing business in Chicago is raised by having to pay the parking meters. If Chicago is going to have a parade and block off traffic, it has to pay Goldman Sachs what the firm would have made if the streets wouldn’t have been closed off for a parade. All of a sudden it’s much more expensive to live in Chicago because of this.

But this added expense of having to pay parking rights to Goldman Sachs – to pay out interest to its bondholders – is counted as an increase in GDP, because you’ve created more product simply by charging more. If you sell off a road, a government or local road, and you put up a toll booth and make it into a toll road, all of a sudden GDP goes up.

If you go to war abroad, and you spend more money on the military-industrial complex, all this is counted as increased production. None of this is really part of the production system of the capital and labor building more factories and producing more things that people need to live and do business. All of this is overhead. But there’s no distinction between wealth and overhead.

Failing to draw that distinction means that the host doesn’t realize that there is a parasite there. The host economy, the industrial economy, doesn’t realize what the industrialists realized in the 19^th century: If you want to be an efficient economy and be low-priced and under-sell competitors, you have to cut your prices by having the public sector provide roads freely. Medical care freely. Education freely.

If you charge for all of these, you get to the point that the U.S. economy is in today. What if American factory workers were to get all of their consumer goods for nothing. All their food, transportation, clothing, furniture, everything for nothing. They still couldn’t compete with Asians or other producers, because they have to pay up to 43% of their income for rent or mortgage interest, 10% or more of their income for student loans, credit card debt. 15% of their paycheck is automatic withholding to pay Social Security, to cut taxes on the rich or to pay for medical care.

So Americans built into the economy all this overhead. There’s no distinction between growth and overhead. It’s all made America so high-priced that we’re priced out of the market, regardless of what trade policy we have.

HEDGES: We should add that under this predatory form of economics, you game the system. So you privatize pension funds, you force them into the stock market, an overinflated stock market. But because of the way companies go public, it’s the hedge fund managers who profit. And it’s those citizens whose retirement savings are tied to the stock market who lose. Maybe we can just conclude by talking about how the system is fixed, not only in terms of burdening the citizen with debt peonage, but by forcing them into the market to fleece them again.

HUDSON: Well, we talk about an innovation economy as if that makes money. Suppose you have an innovation and a company goes public. They go to Goldman Sachs and other Wall Street investment banks to underwrite the stock to issue it at $40 a share. What’s considered a successful float is when, immediately, Goldman and the others will go to their insiders and tell them to buy this stock and make a quick killing. A “successful” flotation doubles the price in one day, so that at the end of the day the stock’s selling for $80.

HEDGES: They have the option to buy it before anyone else, knowing that by the end of the day it’ll be inflated, and then they sell it off.

HUDSON: That’s exactly right.

HEDGES: So the pension funds come in and buy it at an inflated price, and then it goes back down.

HUDSON: It may go back down, or it may be that the company just was shortchanged from the very beginning. The important thing is that the Wall Street underwriting firm, and the speculators it rounds up, get more in a single day than all the years it took to put the company together. The company gets $40. And the banks and their crony speculators also get $40.

So basically you have the financial sector ending up with much more of the gains. The name of the game if you’re on Wall Street isn’t profits. It’s capital gains. And that’s something that wasn’t even part of classical economics. They didn’t anticipate that the price of assets would go up for any other reason than earning more money and capitalizing on income. But what you have had in the last 50 years – really since World War II – has been asset-price inflation. Most middle-class families have gotten the wealth that they’ve got since 1945 not really by saving what they’ve earned by working, but by the price of their house going up. They’ve benefited by the price of the house. And they think that that’s made them rich and the whole economy rich.

The reason the price of housing has gone up is that a house is worth whatever a bank is going to lend against it. If banks made easier and easier credit, lower down payments, then you’re going to have a financial bubble. And now, you have real estate having gone up as high as it can. I don’t think it can take more than 43% of somebody’s income to buy it. But now, imagine if you’re joining the labor force. You’re not going to be able to buy a house at today’s prices, putting down a little bit of your money, and then somehow end up getting rich just on the house investment. All of this money you pay the bank is now going to be subtracted from the amount of money that you have available to spend on goods and services.

So we’ve turned the post-war economy that made America prosperous and rich inside out. Somehow most people believed they could get rich by going into debt to borrow assets that were going to rise in price. But you can’t get rich, ultimately, by going into debt. In the end the creditors always win. That’s why every society since Sumer and Babylonia have had to either cancel the debts, or you come to a society like Rome that didn’t cancel the debts, and then you have a dark age. Everything collapses.

Michael Hudson’s new book, Killing the Host is published in e-format by CounterPunch Books and in print by Islet. He can be reached via his website, mh@michael-hudson.com. Chris Hedges’s latest book is Days of Destruction, Days of Revolt, illustrated by Joe Sacco.

The National Endowment for Democracy: Not National and Not for Democracy

Posted on August 17, 2016 by Reid Mukai

By Tony Cartalucci

Source: New Eastern Outlook

Using a front to hide illegal or immoral activities has been a feature of human criminality since the beginning of human civilization itself. Facades, both ideological and economical, have helped criminal enterprises conceal the true nature of their activities for centuries.
In ages past, organized religion would often take systems of legitimate philosophy and spirituality, and transform them into a means of organizing the masses for the benefit of an elite few, often those heading empires, kingdoms, or nation-states. More recently, patriotism and now the notion of “democracy” have been used successfully by similar cadres of special interests to conceal their self-serving agendas behind notions likely to recruit support from large segments of a population that would otherwise be disinterested.

There is no example of this more transparent than that of the US National Endowment for Democracy (NED). According to its own website, it claims:

The National Endowment for Democracy (NED) is a private, nonprofit foundation dedicated to the growth and strengthening of democratic institutions around the world. Each year, NED makes more than 1,200 grants to support the projects of non-governmental groups abroad who are working for democratic goals in more than 90 countries.

“The growth and strengthening of democratic institutions around the world” sounds noble enough. One would expect, then, that the NED would be led by a collection of some of the most notable activists involved in the empowerment of “the people.” Instead, upon NED’s board of directors, we find people representing corporate-financier interests notorious for instead, exploiting and subjugating “the people.”

Unfortunately, for those receiving the millions upon millions of dollars the NED hands out annually to “nongovernmental organizations” (NGOs) around the world, few bother to actually check who it is underwriting their daily activities, and fewer still have the integrity to both turn down the money let alone inform the people they claim to represent just who is attempting to reach into their respective nations and subvert their political systems, and to what end.

Quite literally, each and every member of the NED’s board of directors represents Fortune 500 corporations, insidious corporate-financier funded policy think-tanks, and a wide variety of other obvious conflicts of interest unbecoming of an organization truly interested in, “the growth and strengthening of democratic institutions around the world.”

NED: Who’s Who

The worst part of NED’s activities worldwide and the fact that allegedly liberal progressive NGOs are taking money from them and aiding and abetting their agenda, is the fact that the background of NED’s board of directors is posted directly on NED’s own website. This means recipients of NED cash either recklessly didn’t bother to look into the organization sponsoring them, or simply do not care about the compromised nature of their sponsors.

For example, Marilyn Carlson Nelson (NED secretary) is co-CEO of one of the largest privately held companies in the world, Carlson Holdings operating hotels around the world. She also serves on the board of Exxon Mobil and chairs the U.S. Travel and Tourism Advisory Board. She alone represents such a tangled web of compromising and conflicting interests, it calls into question the integrity and true agenda of NED.

Carlson Nelson’s company, Carlson Holdings, deals in hotels, yet she concurrently sits on a government board under the International Trade Administration which makes decisions and policies on behalf of the US that directly benefits private industry specifically like that of Carlson Holdings. Her position upon Exxon Mobil’s board of directors is also troublesome. Exxon, a gargantuan multinational corporation, conducts business around the world and by necessity, requires political (and military) interventions to enter into and overwhelm those few remaining markets it has yet to dominate.

Carlson Nelson’s role in the NED, then, could be (and is) easily abused to subvert foreign governments that pose barriers to Carlson Holdings or Exxon, and put into power opposition parties that would deal in favor of such multinations – all under the guise of “the growth and strengthening of democratic institutions around the world.”

Other NED board members representing compromising corporate-financier special interests include Marne Levine (Facebook, Coo, Instagram), Mark Ordan (WP Glimcher – real estate), and with Carl Gershman, Princeton Lyman, Stephen Sestanovich, and Melanne Verveer serving as members of the Council on Foreign Relations (CFR) – a corporate-financier funded think-tank representing the collective economic and geopolitical ambitions of Wall Street, London, and Brussels’ most powerful special interests.
The CFR’s corporate sponsors include Bank of America, Chevron, Citi, Exxon, Goldman Sachs, JP Morgan, PepsiCo, Shell Oil, Coca-Cola, BP, Google, Lockheed Martin, AT&T, Boeing, Facebook, DynCorp, Northrop Grumman, Pfizer, Raytheon, Microsoft, and Merck – a virtual who’s who of abusive special interests plaguing the world with socioeconomic disparity, compromising “free trade” deals, and driving conflicts ranging from “color revolutions” and proxy wars to full-scale invasions and decade-long occupations.

NED – which poses as a liberal-progressive organization – includes a surprising number of right-wing Neoconservatives (Neocons). This includes Vin Weber, a Bush-era Neocon who strongly advocated the invasion and occupation of Iraq – a war now revealed to have been predicated on an intentional lie regarding Iraq’s supposed chemical and biological weapons program.

Weber is a partner at the public strategy firm, Mercury. There, he consults and lobbies for multinational corporations, governments, and corporate-funded foundations including Microsoft, Visa, Pfizer, AT&T, Ebay, the Ford Foundation, pharmaceutical firm Gilead, NBC, the government of Qatar, and many others.

For what reason would NED include a pro-war corporate lobbyist on its board of directors if not for the fact that NED itself is but a facade for carrying out pro-corporate-financier agendas under the guise of promoting “democracy” around the world?

Other Neocons populating NED’s board of directors includes Elliot Abrams, Francis Fukuyama, Zalmay Khalilzad, and Will Marshall. One pro-war Neocon could have been an anomaly – five begins to fit a pattern. It should be noted that NED’s subsidiary, Freedom House, also hosts corporate lobbyists and pro-war Neocons as well, including Kenneth Adelman.

NED Funds Your Local “Pro-Democracy Activists,” But Who Funds NED?

One of NED’s subsidiaries, Freedom House, is admittedly funded by multinational corporations including AT&T, defense contractors BAE Systems and Northrop Grumman, industrial equipment exporter Caterpillar, tech-giants Google and Facebook, and financiers including Goldman Sachs.

NED itself – according to a 2013 disclosure (.pdf) – is funded by among others, Chevron, Coca-Cola, Goldman Sachs, Google, Microsoft, and the US Chamber of Commerce.

What do these corporations have to do with “the growth and strengthening of democratic institutions around the world?”

The US Chamber of Commerce in particular is also heavily involved in post-regime change operations carried out by the US government either through direct military conflict or proxy wars and “color revolutions,” being the first to appear in front of new proxy governments to establish Western corporate-financier hegemony over newly “opened” market space.

NED’s individual donors also are telling. They include Frank Carlucci of the notorious Bush-family linked equity firm, the Carlyle Group. There is also former NED board member Kenneth Duberstein, a board member of defense contractor Boeing, big oil’s ConocoPhillips, and the Mack-Cali Realty Corporation. Duberstein also served as a director of Fannie Mae until 2007. He too is a CFR member as are two of the companies he chairs, Boeing and ConocoPhillips.

Also listed as an individual donor to NED is Neocon Paula Dobriansky – a trustee at NED’s subsidiary Freedom House, as well as former US Secretary of State Condoleezza Rice who served during the Bush administration.

Supposedly liberal-progress NGOs around the world taking money from corporate-financiers, warmongers, and right-wing ideologues embodies perfectly the notion of a fraudulent front used to conceal criminal intentions under the guise of a noble cause.

How it Works: A Case Study

The Southeast Asian state of Thailand is currently gripped by a long-running political crisis centered around Thailand’s indigenous institutions and political order, and that of US-backed proxy Thaksin Shinawatra. Shinawatra himself was – like NED individual donor Frank Carlucci, a member of the Carlyle Group. Before becoming prime minister in 2001, Shinawatra would pledge to his friends in the US business community that he would use his office to serve as a “matchmaker” between Wall Street and Thailand’s people and resources.

Upon taking office, he would carry out a series of abusive and unpopular moves including the commitment of Thai troops to America’s illegal invasion and occupation of Iraq, the hosting of the CIA’s abhorrent rendition program on Thai soil, and an attempt to ram through a US-Thai free trade agreement in 2004 without parliamentary approval.

In 2006, Shinawatra would ultimately be ousted from power by the Thai military. Since then, he has been represented by some of the largest lobbying firms in Washington, including by the above mentioned Freedom House trustee Kenneth Adelman. However, that is not the limit to which the NED has helped prop up Shinawatra’s political front in Thailand.

The NED also funds a myriad of “NGOs” in Thailand aimed specifically at undermining Thailand’s institutions – most notably the military, monarchy, courts, and even the economy itself. These are included on a long list on NED’s own website and include:

Thai Poor Act;
Thai Civil Rights and Investigative Journalism;
Thai Volunteer Service;
Makhampom Foundation;
Cafe Democracy;
Media Inside Out Group;
ENLAWTHAI Foundation;
Human Rights Lawyers Association and;
Foundation for Community Educational Media

It should be noted that in recent years, NED has become as ambiguous as possible about listing which NGOs it specifically funds – while NGOs in Thailand receiving NED funding regularly attempt to conceal NED funding and have been caught on several occasions outright lying about it.

For instance, while NED lists “Foundation for Community Educational Media,” it actually includes organizations like Thai Netizen and Prachatai – two entwined media fronts who have habitually covered up their foreign funding all while asking for donations locally.

Such behavior indicates that NGOs like Thai Netizen and Prachatai are fully aware of the impropriety they are a party to.

Each and every NED-funded NGO in Thailand is currently engaged in daily attacks against the current government, and serves a direct supporting role in bolstering opposition fronts directly tied to the ousted regime of Thaksin Shinawatra. “Human rights lawyers” underwritten by NED regularly represent US-backed agitators rounded and charged for various crimes while media fronts like Prachatai churn out a daily tidal wave of disinformation in support of US interests both in Thailand and across Asia.

Legitimate grassroots campaigns such as opposition to foreign multinational agribusiness and attempts to impose genetically modified organisms (GMOs) upon Thai agriculture receive little to no support from this milieu of US-funded fronts. Likewise, pragmatic and constructive opposition to current government policies done within a framework of cooperating with government agencies to arrive at compromises are also ignored entirely by NED’s networks.

NED’s various fronts are solely focused on pressuring the government into arranging elections and giving America’s proxies, Thaksin Shinawatra and his political allies, another opportunity at seizing power.

Shinawata, once back in power, and after sufficiently diminishing the power of Thailand’s existing political order, would return to destructive pro-US policies ranging from “free trade” with Wall Street special interests to supporting America’s unending wars worldwide. His regime would also likely mobilize Thailand’s population and resources on behalf of Washington’s proxy war with China – costing Thailand a valuable trade and military partner along with peace and stability across Asia.

When political instability surfaces around the world – opposition forces mobilizing in the streets and over the airwaves must be carefully scrutinized. Determining from where they receive their funding and political support is essential in determining whether these opposition forces are legitimate or the manufactured pawns of Western corporate-financier special interests being funded through fronts like the National Endowment for Democracy – a front that is private – not national, and that is for corporate-financier special interests – only under the guise as being “for democracy.”

The Rise of the Corporatocracy

Posted on August 12, 2016 by Reid Mukai

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By Graham Vanbergen

Source: The European Financial Review

Transnational corporations are wreaking havoc on financial, economic, social and ecological systems in a creeping colonisation of public life where just 147 organisations now controls 40 per cent of global trade.

We all have a feeling that something is not quite right any more. We know there is a creeping colonisation of public life by corporations because we know a slow motion coup d’état is taking place by transnational organisations facilitated by our political leaders. The incontrovertible proof stares at us in the face every day with wave after wave of financial, economic, social and ecological crisis.

A clear and troublesome picture of corporate power has emerged in recent years where rising inequality is now simply the distinction of expanding corporate activity and those being left behind.

A study in 2000 by Corporate Watch, Global Policy Forum and the Institute for Policy Studies (IPS) revealed some alarming facts about a rising corporatocracy that should have been brought to heel by western government’s years ago. Instead, corporations are now literally at the helm.

At the turn of the millennia this study confirmed that whilst there were around 40,000 worldwide corporations, just 200 had true global reach and influence. These colossal organisations, many larger than national economies controlled well over one quarter of global economic activity whilst 80 per cent of the world’s population were either left out completely, marginalised or were net losers as a direct result of their activities.¹

The decade long IPS study made for very uncomfortable reading. The most alarming amongst a long list of culpability is that as corporate profits soared – wealth concentration followed, and it did so in an environment of stagnating workers wages.

For perspective, the report highlighted that of the 100 largest economies in the world, 51 were corporations; only 49 were countries. Wal-Mart for example, was bigger than 161 countries. Mitsubishi was larger than the fourth most populous nation on earth: Indonesia. General Motors was bigger than Denmark. Ford was bigger than South Africa.

The top 200 corporations were bigger than the combined economies of 182 countries and have twice the economic influence than 80 per cent of all humanity.

You might find it something of a surprise to learn that these same 200 global corporations employed less than one third of one per cent of the world’s people – just 18.8 million.

Trading, automobiles, banking, retailing and electronics are where most corporate concentration accumulates and even then one third of all trade is transactions among various units of the same corporation.

By 2012, the top 25 corporations in the world were earning $177,000 per second with Wal-Mart’s annual revenue having risen to $470 billion.

Today the outlook is even worse. Three mathematicians at Zurich Polytechnic Institute published a quite remarkable in-depth report on transnational corporations (TNCs) according to their connections to other TNCs. Beginning with a data base that has now grown to 43,000 corporations, they refine the ownership connections, up and downstream and highlight the most interconnected of these companies. Finally, they arrive at a “core” of 147 companies that now controls an astonishing 40 per cent of the economic value of the entire sample and therefore, global trade.

In little more than a decade, TNCs share of the global market place has increased dramatically whilst competition fell by almost the same factor.

And yet, armed with such damning and conclusive information, the situation continues to deteriorate as politicians abandon any fragments of morality in favour of lucrative revolving door careers leaving entire nations with little more than the hollowed out remains of once thriving economies based on manufacturing and the corpse of democracy.

In the late 1970’s the share of economic value going to labour in the form of wages in Europe was around 70 per cent of GDP. Over the decades there has been a dire shift. Capital has had a very favourable 10 per cent rise in returns and by contrast labour a 10 per cent fall. With an economy worth €13 trillion, the loss to an already stretched working and middle class is €1.3 trillion a year. Shareholders used to be content with returns of say 3 or 4 per cent but now demand near on double digit returns or the CEO is ousted. The consequence being that corporations want to win no matter what the cost.

In Susan George’s “State of Corporations” the observation is made that “From the mid-1990s, the largest American banking, securities, insurance and accounting transnational corporations joined forces and, employing 3000 people, spent $5 billion to get rid of all the New Deal laws passed under the Roosevelt administration in the 1930s – the very laws that had protected the American economy for over sixty years. Through this collective lobbying push, they won total freedom to remove any money-losing assets from their balance-sheets and move them into “shadow” banks that appeared nowhere on their balance sheets. They became free to create and trade hundreds of billions worth of toxic derivative products, such as bundles of sub-prime mortgages, with no regulation whatever.”²

The peak of their collective effort was a global implosion of the finance industry in 2008 and eight years later its lingering state of decline now threatens the Great Depression of 1929 as the longest running recession in history – already the slowest recovery ever recorded.

In the US alone, over 10 million families had their homes repossessed and according to Bloomberg, $14.5 trillion, or 33%, of the value of the world’s companies and nearly 14% of US GDP was wiped out by the crisis. This forgets the effects on developing and third world economies where $3.3 trillion of promised aid remains just that – promised and unpaid.

In the era of “too big to fail and jail” virtually no one was brought to heel or sent to prison for such devastating crimes. Today, the banking industry is almost totally out of control. Daily derivative trading is now a third greater than at the peak of the 2008 crisis. Fraud, rigging, insider dealing and money laundering reach a new summit of lawlessness each day. In the top twenty of global corporations, five are banks.

In the meantime, learning from previous successes, corporate lobbyists now termed “expert committees” meet daily with EU Commission officials to hammer out a trade deal whilst almost no consumer or environmental organisations are represented. Civil society is excluded, as are their representatives in the guise of MEP’s with the illusion of democracy fading fast.

Corporations now place their profits in ultra low or no tax jurisdictions and their losses in high-tax ones, where an estimated $32 trillion is shielded from making any contribution to the societies they extract their wealth from with little or no scrutiny from government’s.

What we now have is anarchy by very rich and powerful corporations. The roll call of shame is never-ending – auto manufacturers, banking, pharmaceutical, food manufacturers, energy industries to name few.

Epic financial crimes, monumental tax evasion, ecological damage on an industrial scale and non-stop illegal wars to ensure a never-ending resource supply is a shameful system based on corporate greed. In its wake we now have 1920’s style rampant inequality and rising poverty reminiscent of the era of Dickens. All of this somehow is the new normal.³

Steal a loaf of bread and it’s prison for you, loot an entire country and it’s a Knighthood. For instance, the British public believes as a result of a long, malicious class-war style political campaign, that benefits fraud is a huge social problem. A recent poll by the workers union TUC showed people believe that 27% of the welfare budget is fraudulently claimed. The figure is in fact 0.7%. As it turns out benefit underpayments by the government outweighs benefit fraud.

Contrast that with one of Britain’s biggest fraudsters – HSBC. In a few short years it has been caught laundering billions of ill-gotten gains on behalf of dictators and despots, international gangsters, traffickers, drug barons, murderers and every other criminal down a particularly odious food chain. It was also caught red-handed in the huge Swiss tax evasion scandal benefitting corporations before we even got to hear of the Panama Papers. The Conservatives gave its boss Stephen Green a plum ministerial role as trade minister in 2011 and he sits in the House of Lords as a Tory peer in an irony lost on themselves and the media.⁴

Globalisation has continually compounded corporate power and consolidated its influential reach on global governance. Again, trade deals such as TTP and TTIP where entire continents are subjected to corporate domination are evidence of that, but their reach has a more sinister outcome. Corporate lobbyists who now have unprecedented privilege granted by global decision makers to sideline sovereign regulations designed to protect citizen rights and the environment have infiltrated the United Nations.

The UN has a special section for corporations called the “Global Compact” founded about fifteen years ago by Kofi Annan and the then President of Nestle. To become a member, a corporation need only sign on for fifteen principles in the areas of human or labour rights and the environment.⁵

The corporations of the Global Compact added themselves to members of the World Business Council for Sustainable Development and other trade bodies such as the Chambers of Commerce. When the UN held its “environmental” conference in Rio 2012, business completely dominated proceedings for the first time. Corporate interests now have a disproportionality high level of political influence on a truly global scale.

A good example would be Cecilia Malmstrom, the lead EU Trade Commissioner of the TTIP negotiations between Europe and the US. She was questioned by a reporter from The Independent a few months back on why she continued her persistent promotion of the deal against such massive public opposition, her response was: “I do not take my mandate from the European people.”⁶

Just a few weeks ago we discover that the European Parliament voted in favour of the “Trade Secrets Protection Directive” – a law that gives corporations alarming new superpowers to prosecute and criminalise whistleblowers, journalists, and news organisations that publish leaked internal documents.

As Dr. Paul Craig Roberts former Assistant Secretary of the US Treasury for Economic Policy and associate editor of the Wall Street Journal put it recently “politically powerful corporations have gained the power in Western “democracies” to sacrifice the welfare of all populations to corporate greed for profit regardless of the cost to peoples, countries, and societies. American “democratic capitalism” is total and irredeemable. TTIP gives corporations unaccountable power over governments and peoples”

Democracy is now on the verge of going from farce to tragedy as a direct result of the indomitable rise of corporate power.

We now live in an era where the fetid reality between rich and poor is demonstrated no better than the rapidly rising inequality of wealth distribution. In 1976 America, the top 1% earned 9 per cent of the national wealth. Thirty years later and their take of national wealth has almost tripled to 24 per cent.⁷

One of the greatest challenges of our time is to understand the influence of transnational corporations over public policy and how we can engineer a form of capitalism that benefits a wider range of people whilst wrestling social and environmental injustice back into the safe arms of a fully functional democracy.

Currently, the only thing left in opposition now is a general public under siege who protest in cities across Europe and America and present petitions to their respective governments representing millions of citizens. These are the same people who have to pay for all this (legalised) criminality in lost services, employment and savings, yet remain unheard.

References
1. The rise of corporations – Global Policy Forum https://www.globalpolicy.org/component/content/article/221/47211.html
2. Susan George – State of Corporations
3. https://www.tni.org/sites/www.tni.org/files/download/state_of_corporation_chapter.pdf
4. UK has poorest people in Western Europe
5. http://www.ibtimes.co.uk/uks-poorest-among-most-financially-stricken-europe-1452895
6. HSBC’s Stephen Green appointed trade minister amid banking scandal
7. http://www.independent.co.uk/news/business/news/hsbc-scandal-banks-former-boss-stephen-green-resigns-from-uk-finance-lobbying-group-10046438.html
8. UN infiltrated by corporations
9. https://www.unglobalcompact.org/docs/news_events/9.1_news_archives/2013_12_06/Secretary-GeneralReportA68326.pdf
10. Head of EU TTIP negotiations quote
11. Wealth inequality in America – VIDEO

ANOTHER MYSTERIOUS DEATH – Activist and Sanders Supporter Who Served Papers to DNC on Fraud Case Found Dead

Posted on August 8, 2016 by Reid Mukai

By Jim Hoft

Source: Gateway Pundit

On July 3, 2016, Shawn Lucas and filmmaker Ricardo Villaba served the DNC Services Corp. and Chairperson Debbie Wasserman Schultz at DNC’s headquarters in Washington, D.C., in the fraud class action suit against the Democrat Party on behalf of Bernie Sanders supporters.

Shawn Lucas was thrilled about serving the papers to the DNC before Independence Day.

** This was before Wikileaks released documents proving the DNC was working against the Sanders campaign during the 2016 primary.

Shawn Lucas was found dead this week.

According to Snopes Lucas was found dead on his bathroom floor.

We contacted Lucas’ employer on 4 August 2016 to ask whether there was any truth to the rumor. According to an individual with whom we spoke at that company, Shawn Lucas died on 2 August 2016. The audibly and understandably shaken employee stated that interest in the circumstances of Lucas’ death had prompted a number of phone calls and other queries, but the company had not yet ascertained any details about Lucas’ cause of death and were unable to confirm anything more than the fact he had passed away.

An unconfirmed report holds that Lucas was found lying on the bathroom floor by his girlfriend when she returned home on the evening of 2 August 2016. Paramedics responding to her 911 call found no signs of life.

This follows the death of 27 year-old Democratic staffer Seth Conrad Rich who was murdered in Washington DC on July 8. The killer or killers appear to have taken nothing from their victim, leaving behind his wallet, watch and phone. Shortly after the killing, Redditors and social media users were pursuing a “lead” saying that Rich was en route to the FBI the morning of his murder, apparently intending to speak to special agents about an “ongoing court case” possibly involving the Clinton family.

And on June 22, 2016, former UN official John Ashe “accidentally” crushed his own throat and died a week before he was scheduled to testify against the Clintons and Democrat Party.

John Ashes died before his court appearance.

Related Podcast:

The Opperman Report – 08.07.16 Niko House; DNC Infiltration, Rigging, Deaths

Fellow Americans, Wake Up & Escape The Matrix

Posted on August 7, 2016 by Reid Mukai

Where Do Matters Stand?

On the eve of World War II the United States was still mired in the Great Depression and found itself facing war on two fronts with Japan and Germany. However bleak the outlook, it was nothing compared to the outlook today.

By Paul Craig Roberts

Source: Covert Geopolitics

Has anyone in Washington, the presstitute Western media, the EU, or NATO ever considered the consequences of constant military and propaganda provocations against Russia? Is there anyone in any responsible position anywhere in the Western world who has enough sense to ask: “What if the Russians believe us? What if we convince Russia that we are going to attack her?”

The same can be asked about China.

The recklessness of the White House Fool and the media whores has gone far beyond mere danger. What do the Russians think when they see that the Democratic Party intends to elect Hillary Clinton president of the US? Hillary is a person so crazed that she declared the president of Russia to be “the new Hitler” and organized through her underling, neocon monster Victoria Nuland, the overthrow of the democratically elected government of Ukraine. Nuland installed Washington’s puppet government in a former Russian province that until about 20 years ago was part of Russia for centuries.

I would bet that this tells even the naive pro-western part of the Russian government and population that the United States intends war with Russia.

Ever since Russia stood up to Obama over Syria, the Russians have been experiencing hostile propaganda and military operations on their borders. These provocations are justified by Washington and its NATO vassals as a response to “Russian aggression.” Russian aggression consists of nothing but obviously false assertions that Russia is about to invade the Baltics, Poland, and Romania and recreate the Soviet Empire, the Eastern European part of which, together with the former Russian provinces of Georgia and Ukraine, now belong to the American Empire.

The Russians know that the propaganda about “Russian aggression” is a lie. What is the purpose of the lie other than to prepare the Western peoples for war with Russia?

There is no other explanation.

Even morons such as Obama, Merkel, Hollande, and Cameron should be capable of understanding that it is extremely dangerous to convince a major military power that you are going to attack. To simultaneously also convince China doubles the danger.

Clearly, the West is incapable of producing leadership capable of preserving life on earth.

What can be done when the entire West demonstrates a death wish for Planet Earth?

Until the criminal regimes of Clinton, George W. Bush, and Obama, American presidents from John F. Kennedy forward worked to reduce tensions with the Soviets. Kennedy worked with Khrushchev to reduce tensions caused by US missiles in Turkey and Soviet missiles in Cuba. President Nixon negotiated SALT I (the Strategic Arms Limitation Treaty) and the Anti-Ballistic Missile Treaty. President Carter negotiated SALT II, which was never ratified by the US Senate but was observed by the executive branch. President Reagan negotiated with Soviet leader Gorbachev the end of the Cold War. President George H.W. Bush in exchange for Gorbachev’s agreement to the reunification of Germany promised that NATO would not move one inch to the East.

All of these achievements were thrown away by the neoconized Clinton, George W. Bush, and Obama regimes, each a criminal regime on par with Nazi Germany.

Today life on Planet Earth is far less secure than during the darkest days of the Cold War. Whatever threat global warming poses, it is miniscule compared to the threat of nuclear winter. If the evil that is concentrated in Washington and its vassals perpetrates nuclear war, cockroaches will inherit the earth.

I have been warning about the growing danger of a nuclear war resulting from the arrogance, hubris, ignorance, and evil personified by Washington. Recently, four knowledgable Russian-Americans spelled out the likely consequences of trying to drive Russia to submission with war threats: http://www.paulcraigroberts.org/2016/06/03/41522/

Don’t expect the brainwashed American population to have the moral conscience and fortitude to prevent nuclear war or even the intelligence to prevent their own vaporization. In a recent article in the Wall Street Journal Scott Sagan and Benjamin Valentino report that 59% of the US population support attacking Iran with nuclear weapons in the event that Iran sank one US Navy ship: http://www.wsj.com/articles/would-the-u-s-drop-the-bomb-again-1463682867

Republicans were much more likely than Democrats to approve attacking Iran with nuclear weapons with 81% of Republicans approving nuclear war compared to 47% of Democrats. Yet, the Democrats are behind Hillary who would be the first to use nuclear weapons. After all, a feminized woman has to prove how tough she is, just as Margaret Thatcher was “the Iron Lady.”

Before it is too late for Americans and all of humanity, arrogant Americans need to recall that “those who live by the sword, die by the sword.”

The economic picture is equally dismal and unpromising. The latest payroll jobs report was even more awful than reported. Hardly any new jobs were created, but what largely escaped reporting is the fact that the economy actually lost 59,000 full-time jobs.

Increasingly the US economy consists of part-time jobs that cannot support an independent existence. Thus, more Americans age 19-34 live at home with parents than independently with spouses or partners. Fully half of 25-year old Americans live in their childhood rooms in their parents’ homes.

This is the “New Economy” that the filthy lying neoliberal economists promised would be reward for the American work force giving up their manufacturing and professional skill jobs to foreigners. What a monstrous lie the neoliberal economists told so that corporate executives and shareholders could put into their own pockets the living wage of the American work force. These neoliberal economists, and, alas, libertarian “free market” ones, have not been held accountable for their impoverishment of the American work force deeply buried in debt with no future prospects.

Those few Americans who have any awareness are beginning to realize that the One Percent and the western governments that serve them are re-establishing feudalism. The brilliant and learned economist, Michael Hudson, has labeled our era the era of neo-feudalism.

He is correct. The majority of young Americans come out of university heavily indebted, primed for debtor prison. When half of 25-year olds cannot marry and form households, how can anyone believe that housing sales and prices are rising except as a result of speculative investors banking on rental income from a population that cannot even pay its student loans.

The United States is the sickest place on earth. There is no public or political discussion of any important issue or of the multiple crises that confront America or the crises that America brings to the world.

The American people are so stupid and unaware that they are capable of electing a criminal and a warmonger like Hillary president of the United States and be proud of it.

These “tough” Americans are so frightened of hoax dangers, such as “Muslim terrorists” and “Russian aggression” that they willingly sacrificed their depleted pocketbooks, the Constitution of the United States—an act of treason on the part of the American people who utterly failed their responsibility to protect the Constitution—and their own liberty to a universal police state that has all power over them.

It is extraordinary that once-proud, once-great European peoples look for leadership from a country of moronic non-entities who have pissed away the liberty, security, and prosperity that their Founding Fathers gave to them.

Fellow Americans, if you care to avoid vaporization and, assuming we do avoid it, live a life other than serfdom, you must wake up and realize that your most deadly enemy is Washington, not the hoax of “Russian aggression,” not the hoax of “Muslim terrorism,” not the hoax of “domestic extremism,” not the hoax of welfare bankrupting America, not the hoax of democracy voting away your wealth, which Wall Street and the corporations have already stolen and stuck in their pockets.

If you cannot wake up and escape The Matrix, your doom will bring the doom of the planet.

2016 election decides who controls the drug trade

Posted on August 4, 2016 by Reid Mukai

By Daniel Hopsicker

(Mad Cow Morning News)

In the Presidential Election of 2016, Republican and Democratic insiders are wrestling like two dogs over a bone over who controls the illegal drug trade.

To the victor go the spoils. Who wins the election wins control of America’s vast drug bazaar, largest in the world, whose proceeds prop up lucky bankers and politicians lapping at the trough of the biggest richest slush fund in the history of the world.

It’s the smart play

It’s the biggest business in the world, and the No. 1 industry on the face of the planet, in terms of foreign trade. And if you didn’t know that about the illegal drug trade, then the vast amounts spent on propaganda and disinformation every year in the so-called “War on Drugs” is working.

The first industry to globalize vertically was the illegal drug business. It’s an open question whether drug trafficking drove globalization, or the other way around.

Negotiated by Bill Clinton, the chief beneficiary of NAFTA (North American Free Trade Agreement)—by dollar volume and impact on the economy—was the drug trade.

The Democrats, committed to globalization, will continue to farm out transportation and money laundering to, among others, minions of Mexico’s President Enrique Nieto Pena, cronies of retired Colombian strongman Alvaro Uribe, and a host of eager bankers from the world’s largest banks.

Will a Republican victory will bring back Oliver North? No, it’ll be a Trump Administration appointee with a certain erect posture and short-but-stylishly-cut hair, chosen to occupy the Oliver North seat on the National Security Council.

The Enterprise Lives. And prospers.

Why there’s no Global War on Johnnie Walker Red

Although America’s sun is slowly sinking below the horizon, the country still boasts the biggest and the best illegal drug delivery pipeline on the planet, so efficient it’s sick, the and envy of the world. The UK and Europe may be nipping at our heels, growing bigger vis a vis the U.S. as drug consumers, but the U.S. remains the biggest market.

This market is what we sell to the world; one of a few businesses where we’re still No. 1, along with financial services, which basically means meaning laundering drug money, and movies based on comic books.

Here’s a statistic from the UN’s World Drug Report for 2016:

207,000 drug-related deaths globally.

Compare that with this fact from the UN’s World Health Organization:

“In 2012, 3.3 million deaths, or 5.9 percent of all global deaths, were due to alcohol consumption.”

If the U.S. cares about the health of its citizens we’ll soon have a Liquor Enforcement Administration(an LEA), with approximately sixteen times the funding that the War on Drugs receives every year, which is 40 billion dollars.

That’s within reach of the Pentagon budget; its safe to say it ain’t gonna happen.

It doesn’t happen, becauses of the banks, and also because, as the UN World Drug Report also states, and flatly, worldwide people spend more money on drugs every day than on food.

Yup. You can look it up.

An even bigger reason: Global Too Big to Jail Banks.

London’s Financial Times has warning for global elite

Even when you think you’re talking about something else, you’re talking about drugs, even if you don’t know it. London’s Financial Times briefly surfaced from the 19th Century with a headline reading “Global elites must heed the warning of populist rage’

“The explanation for the prolonged stagnation in real incomes are repeated financial crises and subsequent weak recoveries, which have destroyed popular confidence in the competence and moral principles, honesty, and decency of the elite.”

The greedy parasitic elite that betrayed the middle class, and the country.

The Times continues, “The role of finance is excessive. The financial system remains riddled with perverse incentives.”

Without drug money there is no financialization. Because the banks by themselves don’t have the capital. Some say that sounds like a good thing.

“Air America meets Traffic meets Pineapple Express”

A steady diet of movies like the upcoming ‘Mena’ starring Tom Cruise playing the supposedly-swashbuckling former Air America pilot Barry Seal, has given the movie-going public the idea that the real action in the illegal drug trade is in drug trafficking.

That’s not the case. The real action is in money laundering. Because if you can’t wash clean the money you end up with, it quickly becomes useless to anyone with more long-term goals than throwing the biggest party or longest orgy the world has ever seen. And because money weighs more than drugs—and is way more bulky unless you’re smuggling marijuana which is today considered more out of the stone age than old school.

So there’s a problem. Providing a solution are casinos, bodegas, cambios, Western Union, grocery stores, restaurants, even dry cleaners, and banks. Especially banks. In fact it they weren’t for laundering drug money, HSBC, JP Morgan, Barclays and Bank of America would have already gone the way of Mario Brothers or YAHOO, which only makes news anymore when pieces are sold off in foreclosure.

Three brief moments in time in the drug trade

A Turkish boat carrying a massive 3.2 tonnes of high purity cocaine hidden in a ballast tank at the front of the MV Hamal was busted 100 miles east of the Aberdeenshire coast.

It was a record $673 million (£512 million) cocaine haul.The captain and second in command—Mumin Sahin and Emin Ozmen—were convicted, and sent to prison.

“The Captain and the second in command” are the drug trade’s equivalent of David Letterman Show favorites Mujibur and Sirajul, who ran a t-shirt shop in a tiny frontage near the Ed Sullivan Theater. They were ordinary people who Letterman found exceptional just because there were so ordinary.

Is there a shortage of people ready to take a chance smuggling a half-billion cargo? Is that the plan?

“Operation SCREENPLAY” gets a tentative green light

“OPERATION Screenplay will go down as one of the all-time great UK drug busts,” enthused John McGowan, head of border investigations.

“To put it in perspective, the total seizure of cocaine by all police forces in England and Wales in 2014-15 was 3.4 tons. That was for everything. This single seizure was 3.2 tons.”

In a blatant pitch for more government funding—so that he could presumably really go to town, he added, “And all we had was intelligence from the French that there was a considerable quantity of cocaine on board.”

The paper seemed not so sure. The report ended, “Despite the size of the seizure, anecdotal evidence suggests police did not record a dip in the amount of cocaine on our streets.”

Playing whack-a–mole around the world

An expert who testified at their trial about “recognised trade routes” for shipping cocaine was perhaps a little too candid. He told the jury:

“It is now south of Venezuela and Guyana because of a lot of enforcement activity by the USA patrolling the coast. It’s massive importation – unprecedented in my experience.”

Those sneaky traffickers. Always playing whack-a-mole.

Cocaine production in Colombia increased dramatically—shooting up a staggering 46 percent—last year. The country now has the resources to produce 712 tons of cocaine annually. Growth exploded in lawless areas in the Sierra Nevada mountains in the north and in the Amazon region, on the Venezuelan and Ecuadorean borders and along the Pacific coast.

But cultivation dropped in central Colombia, where the people running both Colombia’s government and drug trade of Colombia.

Huh. Imagine that.

The Mexican Navy left with many barrels of zesty condiments

The Mexican navy found 13 tons of cocaine inside barrels of hot sauce in Manzanillo, 500 miles west of Mexico City. The barrels full of zesty condiment and cocaine were believed to belong to the Sinaloa Cartel.

A week earlier, busy Mexican sailors discovered almost a ton of cocaine—more than 900 keys—floating in the open sea off the coast of Chiapas.

A ton of cocaine. Just… floating…100 miles from shore.

The world’s richest industries

How much money an industry makes is the best rule of thumb for how much clout that industry exerts on the countries in which it operates. The illegal drug trade has yearly revenues exceeding the 946 billion in annual revenue of Walmart, Microsoft, Google, Ebay, and British Petroleum, combined.

In the U.S., and almost everywhere else, it’s a cash cow of almost unimaginable proportions.

The richest industries are all based on at assets we use in our lives every day, from computers to entertainment, to oil, to shopping, to drugs. According to therichest.com, “They are industries we give our hard-earned money to out of necessity, desire, or a mix of the two. And they also tend to be the most valuable, and not just from a monetary standpoint. Their value lies in the fact that they’re needed to help society advance and function smoothly.”

Imagine several hundred million people trying to get through Monday morning with coffee. Luckily, that won’t ever happen.

About Daniel Hopsicker

Daniel Hopsicker is an investigative journalist dubious about the self-serving assertion of U.S. officials that there are no American Drug Lords.

Yes, Hillary Clinton Served on the Board of a Company Who Funds ISIS

Posted on August 3, 2016 by Reid Mukai

hillary-libya

By Alice Salles

Source: theAntiMedia.org

As the race for the White House heats up, WikiLeaks continues to unveil sensitive information showing ties between the Democratic Presidential nominee Hillary Clinton, foreign governments, and corrupt companies.

In a recent tweet, WikiLeaks reported its unveiling of Clinton’s dubious ties to Lafarge, an American company owned by a French conglomerate that, between 2011 and 2013, paid taxes to the Islamic State (ISIS) in order to protect its cement factory 95 miles northeast of Aleppo, Syria. The arrangements were discovered by the French daily, Le Monde. The story became relevant once again after the Office of the Mayor of Paris recently struck a corporate partnership naming Lafarge as its main supplier.

Lafarge bought the cement plant in Syria in 2007, but in 2011, civil war broke out, forcing Lafarge to make the choice of paying the terrorist organization to continue production. The taxes were allegedly paid to ISIS middlemen and other rebel groups in Syria.

Another investigation carried out by Zaman al-Wasl, an independent news organization based in Syria, adds that Lafarge may have also bought oil from ISIS regularly.

On July 13, 2014, Zaman al-Wasl reported, Mamdooh al-Khalid, who served as the manager and sales manager of Lafarge Syria, “wrote to Bruno Pescheux, General Manager of Lafarge warning him about buying [f]uel from non-governmental company in areas out of the regime’s control.” If Bashar al-Assad’s regime discovered the deal, al-Khalid allegedly warned, the regime would not be pleased.

In a reply to al-Khalid, Pescheux “advised him to mention that Lafarge had done its best to get fuel from the government, and wondered about the previous requests for fuel from Homs refinery” before illegally buying fuel from ISIS in case the regime were to find out about the dealings.

According to The Canary, “Al-Wasl reported that the CEO of Lafarge Cement Syria, Frederic Jolibois, had personally instructed his firm to make payments to Isis.”

But the fact a private Western company has allegedly had dealings with ISIS is not the only worrying factor in this story.

According to an article from 2007 published by the Washington Post, Hillary Clinton was the Clinton family’s breadwinner in the early 1990s, when she was “earning more than $100,000 a year from her law firm salary and corporate board fees.” At the time, she served on Lafarge’s board, making about $31,000 a year from the company.

The report added that “[s]hortly before Bill Clinton was elected president in 1992, Lafarge was fined $1.8 million by the Environmental Protection Agency for pollution violations at its Alabama plant.” As soon as Clinton was elected, however, the administration “reduced that fine to less than $600,000.” Hillary left the board in 1992 after her husband won the Democratic nomination.

According to an investigative report published in the 1980s by the American Spectator and used as a source by The Canary, Hillary Clinton was already involved with the firm when Lafarge helped to facilitate the CIA’s support for Saddam Hussein’s secret weapons program. At the time, Clinton “did legal work for Lafarge … [providing] key services for the covert arms export network that supplied Saddam Hussein.” The Canary added that the investigative report unveiled how “the Justice Department was told to bury the investigation” to “prevent exposure of that secret supply line, and collateral damage to Hillary Clinton.”

During the 2013 annual meeting of the Clinton Foundation, Lafarge’s Executive Vice President for Operations, Eric Olson, was a “featured attendee.” In both 2015 and 2016, Lafarge was listed as a donor to the Clinton Foundation.

As Paris accepts a bid from Lafarge to provide sand for this summer’s Paris-Plages event, an international corporate watchdog known as SumOfUs is now urging Paris Mayor Anne Hidalgo to “immediately cut Paris’ partnership” with the company.

In a petition with nearly 40,000 SumOfUs member signatures, the group claims the partnership with Paris is “scandalous.” According to the SumOfUs campaign manager, Eoin Dubsky, this deal “should have never happened.”

“By partnering with Lafarge for this summer’s Paris-Plages event, the City of Paris is whitewashing the company’s obscene show of corporate greed that profits off the war and violence created by terrorists,” the SumofUs announcement reads.

‘Stop Drinking the Kool-Aid, America: Political Fiction in an Age of Televised Lies’

Posted on August 2, 2016 by Reid Mukai

By John W. Whitehead

Source: A Government of Wolves

“We’ve got to face it. Politics have entered a new stage, the television stage. Instead of long-winded public debates, the people want capsule slogans—‘Time for a change’—‘The mess in Washington’—‘More bang for a buck’—punch lines and glamour.”— A Face in the Crowd (1957)

Politics is entertainment.

It is a heavily scripted, tightly choreographed, star-studded, ratings-driven, mass-marketed, costly exercise in how to sell a product—in this case, a presidential candidate—to dazzled consumers who will choose image over substance almost every time.

This year’s presidential election, much like every other election in recent years, is what historian Daniel Boorstin referred to as a “pseudo-event”: manufactured, contrived, confected and devoid of any intrinsic value save the value of being advertised. It is the end result of a culture that is moving away from substance toward sensationalism in an era of mass media.

As author Noam Chomsky rightly observed, “It is important to bear in mind that political campaigns are designed by the same people who sell toothpaste and cars.” In other words, we’re being sold a carefully crafted product by a monied elite who are masters in the art of making the public believe that they need exactly what is being sold to them, whether it’s the latest high-tech gadget, the hottest toy, or the most charismatic politician.

Tune into a political convention and you will find yourself being sucked into an alternate reality so glossy, star-studded, emotionally charged and entertaining as to make you forget that you live in a police state. The elaborate stage show, the costumes, the actors, the screenplay, the lighting, the music, the drama: all carefully calibrated to appeal to the public’s need for bread and circuses, diversion and entertainment, and pomp and circumstance.

Politics is a reality show, America’s favorite form of entertainment, dominated by money and profit, imagery and spin, hype and personality and guaranteed to ensure that nothing in the way of real truth reaches the populace.

After all, who cares about police shootings, drone killings, SWAT team raids, asset forfeiture schemes, private prisons, school-to-prison pipelines, overcriminalization, censorship or any of the other evils that plague our nation when you can listen to the croonings of Paul Simon, laugh along with Sarah Silverman, and get misty-eyed over the First Lady’s vision of progress in America.

But make no mistake: Americans only think they’re choosing the next president.

In truth, however, they’re engaging in the illusion of participation culminating in the reassurance ritual of voting. It’s just another Blue Pill, a manufactured reality conjured up by the matrix in order to keep the populace compliant and convinced that their vote counts and that they still have some influence over the political process.

Stop drinking the Kool-Aid, America.

The nation is drowning in debt, crippled by a slowing economy, overrun by militarized police, swarming with surveillance, besieged by endless wars and a military industrial complex intent on starting new ones, and riddled with corrupt politicians at every level of government. All the while, we’re arguing over which corporate puppet will be given the honor of stealing our money, invading our privacy, abusing our trust, undermining our freedoms, and shackling us with debt and misery for years to come.

Nothing taking place on Election Day will alleviate the suffering of the American people.

The government as we have come to know it—corrupt, bloated and controlled by big-money corporations, lobbyists and special interest groups—will remain unchanged. And “we the people”—overtaxed, overpoliced, overburdened by big government, underrepresented by those who should speak for us and blissfully ignorant of the prison walls closing in on us—will continue to trudge along a path of misery.

With roughly 22 lobbyists per Congressman, corporate greed will continue to call the shots in the nation’s capital, while our elected representatives will grow richer and the people poorer. And elections will continue to be driven by war chests and corporate benefactors rather than such values as honesty, integrity and public service. Just consider: it’s estimated that more than $5 billion will be spent on the elections this year, yet not a dime of that money will actually help the average American in their day-to-day struggles to just get by.

And the military industrial complex will continue to bleed us dry. Since 2001 Americans have spent $10.5 million every hour for numerous foreign military occupations, including in Iraq and Afghanistan. There’s also the $2.2 million spent every hour on maintaining the United States’ nuclear stockpile, and the $35,000 spent every hour to produce and maintain our collection of Tomahawk missiles. And then there’s the money the government exports to other countries to support their arsenals, at the cost of $1.61 million every hour for the American taxpayers.

Then again, when faced with the grim, seemingly hopeless reality of the American police state, it’s understandable why Americans might opt for escapism. “Humankind cannot bear too much reality,” T. S. Eliot once said. Perhaps that is one reason we are so drawn to the unreality of the American political experience: it is spectacle and fiction and farce all rolled up into one glossy dose of escapism.

Frankly, escapism or not, Americans should be mad as hell.

Many of our politicians live like kings. Chauffeured around in limousines, flying in private jets and eating gourmet meals, all paid for by the American taxpayer, they are far removed from those they represent. Such a luxurious lifestyle makes it difficult to identify with the “little guy”—the roofers, plumbers and blue-collar workers who live from paycheck to paycheck and keep the country running with their hard-earned dollars and the sweat of their brows.

Conveniently, politicians only seem to remember their constituents in the months leading up to an election, and yet “we the people” continue to take the abuse, the neglect, the corruption and the lies. We make excuses for the shoddy treatment, we cover up for them when they cheat on us, and we keep hoping that if we just stick with them long enough, eventually they’ll treat us right.

People get the government they deserve.

No matter who wins the presidential election come November, it’s a sure bet that the losers will be the American people.

As political science professor Gene Sharp notes in starker terms, “Dictators are not in the business of allowing elections that could remove them from their thrones.” As I make clear in my book Battlefield America: The War on the American People, the Establishment—the shadow government and its corporate partners that really run the show, pull the strings and dictate the policies, no matter who occupies the Oval Office—are not going to allow anyone to take office who will unravel their power structures. Those who have attempted to do so in the past have been effectively put out of commission.

So what is the solution to this blatant display of imperial elitism disguising itself as a populist exercise in representative government?

Stop playing the game. Stop supporting the system. Stop defending the insanity. Just stop.

Washington thrives on money, so stop giving them your money. Stop throwing your hard-earned dollars away on politicians and Super PACs who view you as nothing more than a means to an end. There are countless worthy grassroots organizations and nonprofits working in your community to address real needs like injustice, poverty, homelessness, etc. Support them and you’ll see change you really can believe in in your own backyard.

Politicians depend on votes, so stop giving them your vote unless they have a proven track record of listening to their constituents, abiding by their wishes and working hard to earn and keep their trust.

Stop buying into the lie that your vote matters. Your vote doesn’t elect a president. Despite the fact that there are 218 million eligible voters in this country (only half of whom actually vote), it is the electoral college, made up of 538 individuals handpicked by the candidates’ respective parties, that actually selects the next president. The only thing you’re accomplishing by taking part in the “reassurance ritual” of voting is sustaining the illusion that we have a democratic republic. What we have is a dictatorship, or as political scientists Martin Gilens and Benjamin Page more accurately term it, we are suffering from an “economic élite domination.”

A healthy, representative government is hard work. It takes a citizenry that is informed about the issues, educated about how the government operates, and willing to make the sacrifices necessary to stay involved, whether that means forgoing Monday night football in order to attend a city council meeting or risking arrest by picketing in front of a politician’s office.

It takes a citizenry willing to do more than grouse and complain. We must act—and act responsibly—keeping in mind that the duties of citizenship extend beyond the act of voting.

Most of all, it takes a citizenry that cares enough to get mad and get active. As Howard Beale declares in the 1976 film Network:

“I want you to get up right now, sit up, go to your windows, open them and stick your head out and yell, ‘I’m as mad as hell and I’m not going to take this anymore.’ Things have got to change. But first, you’ve gotta get mad!…You’ve got to say, ‘I’m as mad as hell, and I’m not going to take this anymore!’ Then we’ll figure out what to do about the depression and the inflation and the oil crisis. But first get up out of your chairs, open the window, stick your head out, and yell, and say it.”

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Category Archives: Corruption

Yes, Hillary Clinton Served on the Board of a Company Who Funds ISIS

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