Wall Street Panic

Posted on August 25, 2015 by Reid Mukai

By Mike Whitney

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

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

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

— Senior banker commenting to the Financial Times

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

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

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

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

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

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

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

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

What does that mean?

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

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

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

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

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

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

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

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

(“Credit: Magical Thinking“, Macronomics)

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

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

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

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

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

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

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

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

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

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

The Superpower Conundrum

Posted on August 21, 2015 by Reid Mukai

The Rise and Fall of Just About Everything

By Tom Engelhardt

Source: TomDispatch.com

The rise and fall of great powers and their imperial domains has been a central fact of history for centuries. It’s been a sensible, repeatedly validated framework for thinking about the fate of the planet. So it’s hardly surprising, when faced with a country once regularly labeled the “sole superpower,” “the last superpower,” or even the global “hyperpower” and now, curiously, called nothing whatsoever, that the “decline” question should come up. Is the U.S. or isn’t it? Might it or might it not now be on the downhill side of imperial greatness?

Take a slow train — that is, any train — anywhere in America, as I did recently in the northeast, and then take a high-speed train anywhere else on Earth, as I also did recently, and it’s not hard to imagine the U.S. in decline. The greatest power in history, the “unipolar power,” can’t build a single mile of high-speed rail? Really? And its Congress is now mired in an argument about whether funds can even be raised to keep America’s highways more or less pothole-free.

Sometimes, I imagine myself talking to my long-dead parents because I know how such things would have astonished two people who lived through the Great Depression, World War II, and a can-do post-war era in which the staggering wealth and power of this country were indisputable. What if I could tell them how the crucial infrastructure of such a still-wealthy nation — bridges, pipelines, roads, and the like — is now grossly underfunded, in an increasing state of disrepair, and beginning to crumble? That would definitely shock them.

And what would they think upon learning that, with the Soviet Union a quarter-century in the trash bin of history, the U.S., alone in triumph, has been incapable of applying its overwhelming military and economic power effectively? I’m sure they would be dumbstruck to discover that, since the moment the Soviet Union imploded, the U.S. has been at war continuously with another country (three conflicts and endless strife); that I was talking about, of all places, Iraq; and that the mission there was never faintly accomplished. How improbable is that? And what would they think if I mentioned that the other great conflicts of the post-Cold-War era were with Afghanistan (two wars with a decade off in-between) and the relatively small groups of non-state actors we now call terrorists? And how would they react on discovering that the results were: failure in Iraq, failure in Afghanistan, and the proliferation of terror groups across much of the Greater Middle East (including the establishment of an actual terror caliphate) and increasing parts of Africa?

They would, I think, conclude that the U.S. was over the hill and set on the sort of decline that, sooner or later, has been the fate of every great power. And what if I told them that, in this new century, not a single action of the military that U.S. presidents now call “the finest fighting force the world has ever known” has, in the end, been anything but a dismal failure? Or that presidents, presidential candidates, and politicians in Washington are required to insist on something no one would have had to say in their day: that the United States is both an “exceptional” and an “indispensible” nation? Or that they would also have to endlessly thank our troops (as would the citizenry) for… well… never success, but just being there and getting maimed, physically or mentally, or dying while we went about our lives? Or that those soldiers must always be referred to as “heroes.”

In their day, when the obligation to serve in a citizens’ army was a given, none of this would have made much sense, while the endless defensive insistence on American greatness would have stood out like a sore thumb. Today, its repetitive presence marks the moment of doubt. Are we really so “exceptional”? Is this country truly “indispensible” to the rest of the planet and if so, in what way exactly? Are those troops genuinely our heroes and if so, just what was it they did that we’re so darn proud of?

Return my amazed parents to their graves, put all of this together, and you have the beginnings of a description of a uniquely great power in decline. It’s a classic vision, but one with a problem.

A God-Like Power to Destroy

Who today recalls the ads from my 1950s childhood for, if I remember correctly, drawing lessons, which always had a tagline that went something like: What’s wrong with this picture? (You were supposed to notice the five-legged cows floating through the clouds.) So what’s wrong with this picture of the obvious signs of decline: the greatest power in history, with hundreds of garrisons scattered across the planet, can’t seem to apply its power effectively no matter where it sends its military or bring countries like Iran or a weakened post-Soviet Russia to heel by a full range of threats, sanctions, and the like, or suppress a modestly armed terror-movement-cum-state in the Middle East?

For one thing, look around and tell me that the United States doesn’t still seem like a unipolar power. I mean, where exactly are its rivals? Since the fifteenth or sixteenth centuries, when the first wooden ships mounted with cannons broke out of their European backwater and began to gobble up the globe, there have always been rival great powers — three, four, five, or more. And what of today? The other three candidates of the moment would assumedly be the European Union (EU), Russia, and China.

Economically, the EU is indeed a powerhouse, but in any other way it’s a second-rate conglomeration of states that still slavishly follow the U.S. and an entity threatening to come apart at the seams. Russia looms ever larger in Washington these days, but remains a rickety power in search of greatness in its former imperial borderlands. It’s a country almost as dependent on its energy industry as Saudi Arabia and nothing like a potential future superpower. As for China, it’s obviously the rising power of the moment and now officially has the number one economy on Planet Earth. Still, it remains in many ways a poor country whose leaders fear any kind of future economic implosion (which could happen). Like the Russians, like any aspiring great power, it wants to make its weight felt in its neighborhood — at the moment the East and South China Seas. And like Vladimir Putin’s Russia, the Chinese leadership is indeed upgrading its military. But the urge in both cases is to emerge as a regional power to contend with, not a superpower or a genuine rival of the U.S.

Whatever may be happening to American power, there really are no potential rivals to shoulder the blame. Yet, uniquely unrivaled, the U.S. has proven curiously incapable of translating its unipolar power and a military that, on paper, trumps every other one on the planet into its desires. This was not the normal experience of past reigning great powers. Or put another way, whether or not the U.S. is in decline, the rise-and-fall narrative seems, half-a-millennium later, to have reached some kind of largely uncommented upon and unexamined dead end.

In looking for an explanation, consider a related narrative involving military power. Why, in this new century, does the U.S. seem so incapable of achieving victory or transforming crucial regions into places that can at least be controlled? Military power is by definition destructive, but in the past such force often cleared the ground for the building of local, regional, or even global structures, however grim or oppressive they might have been. If force always was meant to break things, it sometimes achieved other ends as well. Now, it seems as if breaking is all it can do, or how to explain the fact that, in this century, the planet’s sole superpower has specialized — see Iraq, Yemen, Libya, Afghanistan, and elsewhere — in fracturing, not building nations.

Empires may have risen and fallen in those 500 years, but weaponry only rose. Over those centuries in which so many rivals engaged each other, carved out their imperial domains, fought their wars, and sooner or later fell, the destructive power of the weaponry they were wielding only ratcheted up exponentially: from the crossbow to the musket, the cannon, the Colt revolver, the repeating rifle, the Gatling gun, the machine gun, the dreadnaught, modern artillery, the tank, poison gas, the zeppelin, the plane, the bomb, the aircraft carrier, the missile, and at the end of the line, the “victory weapon” of World War II, the nuclear bomb that would turn the rulers of the greatest powers, and later even lesser powers, into the equivalent of gods.

For the first time, representatives of humanity had in their hands the power to destroy anything on the planet in a fashion once imagined possible only by some deity or set of deities. It was now possible to create our own end times. And yet here was the odd thing: the weaponry that brought the power of the gods down to Earth somehow offered no practical power at all to national leaders. In the post-Hiroshima-Nagasaki world, those nuclear weapons would prove unusable. Once they were loosed on the planet, there would be no more rises, no more falls. (Today, we know that even a limited nuclear exchange among lesser powers could, thanks to the nuclear-winter effect, devastate the planet.)

Weapons Development in an Era of Limited War

In a sense, World War II could be considered the ultimate moment for both the narratives of empire and the weapon. It would be the last “great” war in which major powers could bring all the weaponry available to them to bear in search of ultimate victory and the ultimate shaping of the globe. It resulted in unprecedented destruction across vast swathes of the planet, the killing of tens of millions, the turning of great cities into rubble and of countless people into refugees, the creation of an industrial structure for genocide, and finally the building of those weapons of ultimate destruction and of the first missiles that would someday be their crucial delivery systems. And out of that war came the final rivals of the modern age — and then there were two — the “superpowers.”

That very word, superpower, had much of the end of the story embedded in it. Think of it as a marker for a new age, for the fact that the world of the “great powers” had been left for something almost inexpressible. Everyone sensed it. We were now in the realm of “great” squared or force raised in some exponential fashion, of “super” (as in, say, “superhuman”) power. What made those powers truly super was obvious enough: the nuclear arsenals of the United States and the Soviet Union — their potential ability, that is, to destroy in a fashion that had no precedent and from which there might be no coming back. It wasn’t a happenstance that the scientists creating the H-bomb sometimes referred to it in awestruck terms as a “super bomb,” or simply “the super.”

The unimaginable had happened. It turned out that there was such a thing as too much power. What in World War II came to be called “total war,” the full application of the power of a great state to the destruction of others, was no longer conceivable. The Cold War gained its name for a reason. A hot war between the U.S. and the USSR could not be fought, nor could another global war, a reality driven home by the Cuban missile crisis. Their power could only be expressed “in the shadows” or in localized conflicts on the “peripheries.” Power now found itself unexpectedly bound hand and foot.

This would soon be reflected in the terminology of American warfare. In the wake of the frustrating stalemate that was Korea (1950-1953), a war in which the U.S. found itself unable to use its greatest weapon, Washington took a new language into Vietnam. The conflict there was to be a “limited war.” And that meant one thing: nuclear power would be taken off the table.

For the first time, it seemed, the world was facing some kind of power glut. It’s at least reasonable to assume that, in the years after the Cold War standoff ended, that reality somehow seeped from the nuclear arena into the rest of warfare. In the process, great power war would be limited in new ways, while somehow being reduced only to its destructive aspect and nothing more. It suddenly seemed to hold no other possibilities within it — or so the evidence of the sole superpower in these years suggests.

War and conflict are hardly at an end in the twenty-first century, but something has removed war’s normal efficacy. Weapons development has hardly ceased either, but the newest highest-tech weapons of our age are proving strangely ineffective as well. In this context, the urge in our time to produce “precision weaponry” — no longer the carpet-bombing of the B-52, but the “surgical” strike capacity of a joint direct attack munition, or JDAM — should be thought of as the arrival of “limited war” in the world of weapons development.

The drone, one of those precision weapons, is a striking example. Despite its penchant for producing “collateral damage,” it is not a World War II-style weapon of indiscriminate slaughter. It has, in fact, been used relatively effectively to play whack-a-mole with the leadership of terrorist groups, killing off one leader or lieutenant after another. And yet all of the movements it has been directed against have only proliferated, gaining strength (and brutality) in these same years. It has, in other words, proven an effective weapon of bloodlust and revenge, but not of policy. If war is, in fact, politics by other means (as Carl von Clausewitz claimed), revenge is not. No one should then be surprised that the drone has produced not an effective war on terror, but a war that seems to promote terror.

One other factor should be added in here: that global power glut has grown exponentially in another fashion as well. In these years, the destructive power of the gods has descended on humanity a second time as well — via the seemingly most peaceable of activities, the burning of fossil fuels. Climate change now promises a slow-motion version of nuclear Armageddon, increasing both the pressure on and the fragmentation of societies, while introducing a new form of destruction to our lives.

Can I make sense of all this? Hardly. I’m just doing my best to report on the obvious: that military power no longer seems to act as it once did on Planet Earth. Under distinctly apocalyptic pressures, something seems to be breaking down, something seems to be fragmenting, and with that the familiar stories, familiar frameworks, for thinking about how our world works are losing their efficacy.

Decline may be in the American future, but on a planet pushed to extremes, don’t count on it taking place within the usual tale of the rise and fall of great powers or even superpowers. Something else is happening on Planet Earth. Be prepared.

Tom Engelhardt is a co-founder of the American Empire Project and the author of The United States of Fear as well as a history of the Cold War, The End of Victory Culture. He is a fellow of the Nation Institute and runs TomDispatch.com. His latest book is Shadow Government: Surveillance, Secret Wars, and a Global Security State in a Single-Superpower World.

American Politics: A House of Mirrors

Posted on August 20, 2015 by Reid Mukai

By Ulson Gunnar

Source: Land Destroyer

A house of mirrors is an immersive, highly distorted and intentionally confusing version of reality. Those walking its corridors are sometimes amused and sometimes frightened by the disorienting experience, but luckily for them, it is only temporary. There is an exit, and they will walk through it, back to reality.

But what if one existed their entire lives in such a distorted reality and knew of no exits? Would they convince themselves that these distorted images reflected back at them were in fact reality no matter how unnatural they appeared? Could they convince themselves to enjoy and even embrace this distorted reality?

One ponders such questions when looking from the outside-in on American politics. It too is a house of mirrors reflecting back a reality entirely distorted. Also like a house of mirrors, American politics have been intentionally constructed this way, to confuse, disorient and even frighten the American people when necessary to exercise mass persuasion over them. The final result is perpetual impunity granted to the powers that truly be, hiding behind the powers that allegedly were “elected,” and powers whose authority only exists in this house of mirrors and no further.

New Leaders, Old Wars

Consider US President George Bush Sr. He launched the inaugural war of what he himself called a “New World Order.” Operation Desert Storm included multiple nations comprising of nearly a million soldiers who swept from the map one of the largest conventional armies (4th largest) in the world. Bush Sr., however, paused just ahead of sweeping the Iraqi leader Saddam Hussein from power. His successor, US President William Jefferson Clinton would keep Iraq subdued with periodic bombing campaigns and the imposition of both crippling sanctions and no-fly zones in the north and south of Iraq.

Clinton would serve 8 years in office and lock horns with Russia in Serbia in a proto-Ukraine-style conflict. In 2000, we should remember that George Bush Jr. ran on a platform opposed to global interventionism. For those trapped in the house of mirrors, this distortion of reality seemed very convincing. For those who understood the hegemonic mission of America’s special interests, those that transcend elections and political parties, they knew Bush Sr.’s desires for a “New World” endured and would manifest themselves in a yet revealed, muscular foreign policy that only needed the right impetus to be justified in the eyes of the American people.

Conveniently, the events of September 11, 2001 delivered just that. So began the 8 year “War on Terror.” So sick of wars were Americans at the end of those 8 years, that anyone promising to end them would likely win the 2008 elections. And so Barack Obama did and thus became “US President.” However, not only did the wars not end, and not only were they in fact expanded, new wars were begun. In fact, these new wars were all the planned wars Bush Sr., Clinton and Bush Jr. never got around to fighting.

Yet, no matter how unnatural this distorted reflection appeared in the American politics house of mirrors, those trapped perpetually within its mirrored walls found it perfectly acceptable for a Democratic president to continue Republican wars and start new wars the Republicans could only have dreamed of starting but couldn’t because of left-wing anti-war movements now silent because “their guy” was in office.

Hillary = Obama = Bush Jr. = Clinton = Bush Sr.

With Hillary Clinton’s announcement that she is running for office in 2016 with President Obama’s full endorsement, those infected with neo-liberalism and wandering the corridors of this house of mirrors see yet another distorted, ghoulish image staring back, but one they are yet again ready to embrace.

Here is a woman who as US Secretary of State laughed and mocked the Libyan people upon hearing their leader had been murdered by terrorists in what constituted by all accounts a war crime. Before that, she played an active role in selling the war upon Libya in 2011 to the American left (as the American right had already desired such a war for years and needed no convincing). By 2016 we may have yet another Clinton in office, and a Clinton fully dedicated to carrying on the wars of both the Democrats and Republicans that came before her.

To say this is continuity of agenda is a bit of an understatement. American foreign policy has been so singular in purpose and focus for the past several decades that it is clear that behind the distortions of this house of mirrors, something singular and very nasty has been there the entire time. Who or what could it be?

The Real President of the United States Lives on Wall Street, not Pennsylvania Avenue

How about we look at the people who pay for the political campaigns to put these various spokesmen and women-in-chiefs into office in the first place? Or the immense interests driving lobbying efforts that target and control both sides of the political aisle in American politics? A single Fortune 100 corporation has enough money to buy out every relevant politician on Capital Hill and still finish up the fiscal year bloated with billions in profits. And what happens when these interests converge across various think-tanks they themselves have set up and created to generate the singular foreign and domestic policies we see carried forward from presidency to presidency, from congressional session to session?

We see complete control exerted over American politics as well as across the media, allegedly charged to serve as watchdogs and a check and balance, but instead turned into an echo chamber and instrument of mass persuasion by those who have clearly consolidated the summation of American politics in their pockets.

While policy might be debated over by these special interests, and groups moved in one direction or another to exert influence against competing special interests among this exclusive club, one thing is for sure, the American voter is the last voice considered in this process.

Since the American voter is incapable of seeing that they are in fact in a house of mirrors to begin with, and think they are “outside” in reality making real decisions, their decisions are completely irrelevant to those who really do live outside in reality and are actually making real decisions.

We must understand that for special interests that collectively control trillions of dollars in assets, profits and infrastructure all over the planet, the last thing they are willing to do is allow for the existence of a system that might actually put into power a form of authority above their own, that would set policy predicated upon the interests of the people, rather than their own. They have the money, the power and the ability to ensure policy is set to suit them, and them alone, and they clearly have done just that.

This is why US troops are still in Afghanistan and Iraq, wars are still being waged either directly or indirectly against Libya, Syria, Yemen, Iran and Russia and destabilization targeting China and other targets of Washington and Wall Street’s special interests continues unabated, albeit distorted within the house of mirrors, regardless of who is president.

So Americans may think they are voting for Hillary Clinton in 2016, and those infected with neo-liberalism the world over may think another enlightened champion of their progressive cause has taken the reins of the free world, but they might as well have voted for another Bush. The reality is, that as along as Americans and those who look to America from abroad for leadership dwell in this house of mirrors, the special interests that intentionally built this carnival called “democracy” will have their way back in actual reality.

Instead of fumbling through another four years trapped inside this carnival attraction, let’s find the exits. Let’s leave this house of mirrors and breathe a breath of fresh air. Are we really going to listen to another round of campaign promises, holding our breath hoping that this time they mean it? Or will we begin divesting from this system and building our own, one that might actually truly represent us this time, far from the mirrored walls that held us for so long?

Closing the Doors of Perception

Posted on August 16, 2015 by Reid Mukai

By Dylan Charles

Source: Waking Times

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

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

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

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

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

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

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

Slamming the Doors

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

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

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

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

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

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

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

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

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

Your Task at Hand

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

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

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

They Live, We Sleep: A Dictatorship Disguised as a Democracy

Posted on August 7, 2015 by Reid Mukai

By John W. Whitehead

Source: The Rutherford Institute

“You see them on the street. You watch them on TV. You might even vote for one this fall. You think they’re people just like you. You’re wrong. Dead wrong.”—They Live

We’re living in two worlds, you and I.

There’s the world we see (or are made to see) and then there’s the one we sense (and occasionally catch a glimpse of), the latter of which is a far cry from the propaganda-driven reality manufactured by the government and its corporate sponsors, including the media.

Indeed, what most Americans perceive as life in America—privileged, progressive and free—is a far cry from reality, where economic inequality is growing, real agendas and real power are buried beneath layers of Orwellian doublespeak and corporate obfuscation, and “freedom,” such that it is, is meted out in small, legalistic doses by militarized police armed to the teeth.

All is not as it seems.

This is the premise of John Carpenter’s film They Live (1988), in which two migrant workers discover that the world’s population is actually being controlled and exploited by aliens working in partnership with an oligarchic elite. All the while, the populace—blissfully unaware of the real agenda at work in their lives—has been lulled into complacency, indoctrinated into compliance, bombarded with media distractions, and hypnotized by subliminal messages beamed out of television and various electronic devices, billboards and the like.

It is only when homeless drifter John Nada (played to the hilt by the late Roddy Piper) discovers a pair of doctored sunglasses—Hoffman lenses—that Nada sees what lies beneath the elite’s fabricated reality: control and bondage.

When viewed through the lens of truth, the elite, who appear human until stripped of their disguises, are shown to be monsters who have enslaved the citizenry in order to prey on them. Likewise, billboards blare out hidden, authoritative messages: a bikini-clad woman in one ad is actually ordering viewers to “MARRY AND REPRODUCE.” Magazine racks scream “CONSUME” and “OBEY.” A wad of dollar bills in a vendor’s hand proclaims, “THIS IS YOUR GOD.”

When viewed through Nada’s Hoffman lenses, some of the other hidden messages being drummed into the people’s subconscious include: NO INDEPENDENT THOUGHT, CONFORM, SUBMIT, STAY ASLEEP, BUY, WATCH TV, NO IMAGINATION, and DO NOT QUESTION AUTHORITY.

This indoctrination campaign engineered by the elite in They Live is painfully familiar to anyone who has studied the decline of American culture. A citizenry that does not think for themselves, obeys without question, is submissive, does not challenge authority, does not think outside the box, and is content to sit back and be entertained is a citizenry that can be easily controlled.

In this way, the subtle message of They Live provides an apt analogy of our own distorted vision of life in the American police state, what philosopher Slavoj Žižek refers to as dictatorship in democracy, “the invisible order which sustains your apparent freedom.”

We’re being fed a series of carefully contrived fictions that bear no resemblance to reality. The powers-that-be want us to feel threatened by forces beyond our control (terrorists, shooters, bombers). They want us afraid and dependent on the government and its militarized armies for our safety and well-being. They want us distrustful of each other, divided by our prejudices, and at each other’s throats. Most of all, they want us to continue to march in lockstep with their dictates.

Tune out the government’s attempts to distract, divert and befuddle us and tune into what’s really going on in this country, and you’ll run headlong into an unmistakable, unpalatable truth: the moneyed elite who rule us view us as expendable resources to be used, abused and discarded.

In fact, a 2014 study conducted by Princeton and Northwestern University concluded that the U.S. government does not represent the majority of American citizens. Instead, the study found that the government is ruled by the rich and powerful, or the so-called “economic elite.” Moreover, the researchers concluded that policies enacted by this governmental elite nearly always favor special interests and lobbying groups.

In other words, we are being ruled by an oligarchy disguised as a democracy, and arguably on our way towards fascism—a form of government where private corporate interests rule, money calls the shots, and the people are seen as mere subjects to be controlled.

Consider this: it is estimated that the 2016 presidential election could cost as much as $5 billion, more than double what was spent getting Obama re-elected in 2012.

Not only do you have to be rich—or beholden to the rich—to get elected these days, but getting elected is also a surefire way to get rich. As CBS News reports, “Once in office, members of Congress enjoy access to connections and information they can use to increase their wealth, in ways that are unparalleled in the private sector. And once politicians leave office, their connections allow them to profit even further.”

In denouncing this blatant corruption of America’s political system, former president Jimmy Carter blasted the process of getting elected—to the White House, governor’s mansion, Congress or state legislatures—as “unlimited political bribery… a subversion of our political system as a payoff to major contributors, who want and expect, and sometimes get, favors for themselves after the election is over.”

Rest assured that when and if fascism finally takes hold in America, the basic forms of government will remain. As I point out in my book Battlefield America: The War on the American People, fascism will appear to be friendly. The legislators will be in session. There will be elections, and the news media will continue to cover the entertainment and political trivia. Consent of the governed, however, will no longer apply. Actual control will have finally passed to the oligarchic elite controlling the government behind the scenes.

By creating the illusion that it preserves democratic traditions, fascism creeps slowly until it consumes the political system. And in times of “crisis,” expediency is upheld as the central principle—that is, in order to keep us safe and secure, the government must militarize the police, strip us of basic constitutional rights, criminalize virtually every form of behavior, and build enough private prisons to house all of us nonviolent criminals.

Clearly, we are now ruled by an oligarchic elite of governmental and corporate interests. We have moved into “corporatism” (favored by Benito Mussolini), which is a halfway point on the road to full-blown fascism.

Vast sectors of the economy, government and politics are managed by private business concerns, otherwise referred to as “privatization” by various government politicians. Just study modern government policies. “Every industry is regulated. Every profession is classified and organized,” writes economic analyst Jeffrey Tucker. “Every good or service is taxed. Endless debt accumulation is preserved. Immense doesn’t begin to describe the bureaucracy. Military preparedness never stops, and war with some evil foreign foe, remains a daily prospect.”

In other words, the government in America today does whatever it wants.

Corporatism is where the few moneyed interests—not elected by the citizenry—rule over the many. In this way, it is not a democracy or a republican form of government, which is what the American government was established to be. It is a top-down form of government and one which has a terrifying history typified by the developments that occurred in totalitarian regimes of the past: police states where everyone is watched and spied on, rounded up for minor infractions by government agents, placed under police control, and placed in detention (a.k.a. concentration) camps.

For the final hammer of fascism to fall, it will require the most crucial ingredient: the majority of the people will have to agree that it’s not only expedient but necessary. But why would a people agree to such an oppressive regime? The answer is the same in every age: fear.

Fear makes people stupid.

Fear is the method most often used by politicians to increase the power of government. And, as most social commentators recognize, an atmosphere of fear permeates modern America: fear of terrorism, fear of the police, fear of our neighbors and so on.

The propaganda of fear has been used quite effectively by those who want to gain control, and it is working on the American populace.

Despite the fact that we are 17,600 times more likely to die from heart disease than from a terrorist attack; 11,000 times more likely to die from an airplane accident than from a terrorist plot involving an airplane; 1,048 times more likely to die from a car accident than a terrorist attack, and 8 times more likely to be killed by a police officer than by a terrorist, we have handed over control of our lives to government officials who treat us as a means to an end—the source of money and power.

We have allowed ourselves to become fearful, controlled, pacified zombies.

In this regard, we’re not so different from the oppressed citizens in They Live. Most everyone keeps their heads down these days while staring zombie-like into an electronic screen, even when they’re crossing the street. Families sit in restaurants with their heads down, separated by their screen devices and unaware of what’s going on around them. Young people especially seem dominated by the devices they hold in their hands, oblivious to the fact that they can simply push a button, turn the thing off and walk away.

Indeed, there is no larger group activity than that connected with those who watch screens—that is, television, lap tops, personal computers, cell phones and so on. In fact, a Nielsen study reports that American screen viewing is at an all-time high. For example, the average American watches approximately 151 hours of television per month.

The question, of course, is what effect does such screen consumption have on one’s mind?

Psychologically it is similar to drug addiction. Researchers found that “almost immediately after turning on the TV, subjects reported feeling more relaxed, and because this occurs so quickly and the tension returns so rapidly after the TV is turned off, people are conditioned to associate TV viewing with a lack of tension.” Research also shows that regardless of the programming, viewers’ brain waves slow down, thus transforming them into a more passive, nonresistant state.

Historically, television has been used by those in authority to quiet discontent and pacify disruptive people. “Faced with severe overcrowding and limited budgets for rehabilitation and counseling, more and more prison officials are using TV to keep inmates quiet,” according to Newsweek.

Given that the majority of what Americans watch on television is provided through channels controlled by six mega corporations, what we watch is now controlled by a corporate elite and, if that elite needs to foster a particular viewpoint or pacify its viewers, it can do so on a large scale.

If we’re watching, we’re not doing.

The powers-that-be understand this. As television journalist Edward R. Murrow warned in a 1958 speech:

We are currently wealthy, fat, comfortable and complacent. We have currently a built-in allergy to unpleasant or disturbing information. Our mass media reflect this. But unless we get up off our fat surpluses and recognize that television in the main is being used to distract, delude, amuse, and insulate us, then television and those who finance it, those who look at it, and those who work at it, may see a totally different picture too late.

This brings me back to They Live, in which the real zombies are not the aliens calling the shots but the populace who are content to remain controlled.

When all is said and done, the world of They Live is not so different from our own. As one of the characters points out, “The poor and the underclass are growing. Racial justice and human rights are nonexistent. They have created a repressive society and we are their unwitting accomplices. Their intention to rule rests with the annihilation of consciousness. We have been lulled into a trance. They have made us indifferent to ourselves, to others. We are focused only on our own gain.”

We, too, are focused only on our own pleasures, prejudices and gains. Our poor and underclasses are also growing. Racial injustice is growing. Human rights is nearly nonexistent. We too have been lulled into a trance, indifferent to others.

Oblivious to what lies ahead, we’ve been manipulated into believing that if we continue to consume, obey, and have faith, things will work out. But that’s never been true of emerging regimes. And by the time we feel the hammer coming down upon us, it will be too late.

US fall from virtuous republic to tragic-comic empire described exactly by Roman historians

Posted on August 2, 2015 by Reid Mukai

By Carl Herman

Source: The Daily Censored

The ancient Greek historian, Polybius, celebrated the Roman republic of ~ 150 BC under its constitution with balance of powers among the Senate, two elected consuls, and the general citizens:

“Such being the power that each part has of hampering the others or co-operating with them, their union is adequate to all emergencies, so that it is impossible to find a better political system than this.” – The Histories, Book VI, Section V: On the Roman Constitution at its Prime

Americans and people around the world were equally proud of the United States Constitution as “impossible to find a better political system than this.”

About 100 years after Polybius’ account, Rome’s republic had descended into oligarchic competition for power. Contemporary to Julius Caesar, the Roman historian and government insider Sallust blasted the decline of virtue in government:

“To those who had easily endured toils, dangers, and doubtful and difficult circumstances, ease and wealth, the objects of desire to others, became a burden and a trouble. At first the love of money, and then that of power, began to prevail, and these became, as it were, the sources of every evil. For avarice subverted honesty, integrity, and other honorable principles, and, in their stead, inculcated pride, inhumanity, contempt of religion, and general venality. Ambition prompted many to become deceitful; to keep one thing concealed in the breast, and another ready on the tongue; to estimate friendships and enmities, not by their worth, but according to interest; and to carry rather a specious countenance than an honest heart. These vices at first advanced but slowly, and were sometimes restrained by correction; but afterwards, when their infection had spread like a pestilence, the state was entirely changed, and the government, from being the most equitable and praiseworthy, became rapacious and insupportable.” – Conspiracy of Catiline, The Argument

The most prolific Roman historian, Livy, witnessed Rome’s transition into dictatorial empire with Augustus Caesar as first emperor. In his preface to address 700 years of Roman history:

“I have no doubt that the earliest origins and the immediately succeeding period will give less delight to the majority of readers who are hurrying to these recent times in which the might of a most powerful people has long been destroying itself.

… I shall seek this additional reward for my labor (recounting all Rome’s history) so that I may turn away from the contemplation of the evils that our age has seen for so many years.” – The History of Rome, Preface

Tacitus wrote ~ 100 AD, a century into empire. Emperors proclaimed to the public that their government still upheld the highest ideals of their Republic, claiming expanding empire was only and always in “self-defense.”

Emperor Domitian’s assassination in 96 AD (among ~22 murdered emperors), allowed Tacitus to write The Agricola, a biographical text of his father-in-law contrasting claimed virtue of Roman military and citizenry with the emperor’s utterly corrupt despotism.

Importantly, this text describes the problem of virtuous Romans within a psychopathic government. Tacitus describes Agricola attempting to uphold virtue; but without recognition of any evil in serving an expanding dictatorial empire. Tacitus seems to assume the ideal of mos maiorum, “custom/virtue of Roman forefathers” will eventually triumph over the evil of present “leadership.”

In Agricola’s campaign as military and political leader of Roman Britain to expand the empire to modern Scotland from 78 – 84 AD, Tacitus recorded a speech he attributes to Scottish rebel-leader, Calgacus, to voice how those of virtue characterized Roman empire under corrupt emperors:

“It is no use trying to escape their arrogance by submission or good behavior. Robbers of the world, having by universal plunder exhausted the land, their drive is greed. If the enemy be rich, they are rapacious; if poor, they lust for domination. Neither rule of the East nor West can satisfy them. Alone among men, they crave with equal eagerness poverty and riches. To plunder, slaughter, seize with false pretenses, they give the lying name ‘empire.’ And where nothing remains but a desert, they call that ‘peace.’ ” – Tacitus, The Agricola and the Germania (analyses here, here)

Roman imperialists called Calgacus and those who preferred independence from evil empire a name: barbarus. This is translated today as “barbarian,” but its context for using unconventional warfare to oppose the most powerful military in its day is better translated in today’s language with a different word:

Terrorist.

Indeed, Obama combines these terms to call ISIS “barbaric terrorists.”

American Founders created the US Constitution in light of Roman Republic design (here, here, among dozens), and aware previous republics had always self-destructed from corruption within their own nations. Among many of the Founders’ admonitions, James Madison was clear that citizen responsibility was essential to maintain a republic, no matter how well the Constitution was designed:

“A mere demarcation on parchment of the constitutional limits (of government) is not a sufficient guard against those encroachments which lead to a tyrannical concentration of all the powers of government in the same hands.” – James Madison, Federalist Paper #48, 1788.

On September 18, 1787, just after signing the US Constitution, Benjamin Franklin met with members of the press. He was asked what kind of government America would have. Franklin warned: “A republic, if you can keep it.” In his speech to the Constitutional Convention, Franklin admonished: “This [U.S. Constitution] is likely to be administered for a course of years and then end in despotism… when the people shall become so corrupted as to need despotic government, being incapable of any other.” – The Quotable Founding Fathers, pg. 39.

These warnings extend to all social science teachers of the present:

“As educators in the field of history–social science, we want our students to… understand the value, the importance, and the fragility of democratic institutions. We want them to realize that only a small fraction of the world’s population (now or in the past) has been fortunate enough to live under a democratic form of government.” – History-Social Science Framework for California Public Schools, pgs. 2, 7-8

US/UK/Israel today: Current Middle East armed attacks are proclaimed by US/UK/Israel “leaderships” as self-defense, just as Rome claimed. US “leaders” claim to uphold America’s highest ideals of freedom while removing almost all Constitutional Rights, as did Roman emperors. Corruption today, as in Rome, is rampant.

US/UK/Israel wars today are not even close to legal, and based on lies known to be false as they are told. Engaging in unlawful Wars of Aggression is the very opposite of a virtuous republic limited in power under its constitution. This is easy to verify for those with about an hour to look:

Solutions learned from the past applied to the present: Tacitus’ argument was to wait-out tyranny in confidence public virtue of past ideals would triumph.

Tacitus was wrong.

A stronger solution would be critical mass recognition by the public of corruption in an Emperor’s New Clothes analogy, arrests, and a clear forum for whistleblowers to disclose the full extent of corruption.

In today’s world of tragic-comic US/UK/Israel corrupt empire, I propose the solution of:

public demand for “leader” arrests. An arrest lawfully stops crimes.
Truth & Reconciliation to encourage criminal minions to become whistleblowers so we can best discover the extent of the crimes waged by the .01% upon the 99.99%.
With removed criminal oligarchs and corporate media who “covered” these crimes, we’d have honest opportunity for available economic solutions that would transform our beautiful, but historically dominated planet.

Note: I make all factual assertions as a National Board Certified Teacher of US Government, Economics, and History, with all economics factual claims receiving zero refutation since I began writing in 2008 among Advanced Placement Macroeconomics teachers on our discussion board, public audiences of these articles, and international conferences. I invite readers to empower their civic voices with the strongest comprehensive facts most important to building a brighter future. I challenge professionals, academics, and citizens to add their voices for the benefit of all Earth’s inhabitants.

Carl Herman is a National Board Certified Teacher of US Government, Economics, and History; also credentialed in Mathematics. He worked with both US political parties over 18 years and two UN Summits with the citizen’s lobby, RESULTS, for US domestic and foreign policy to end poverty. He can be reached at Carl_Herman@post.harvard.edu

Note: Examiner.com has blocked public access to my articles on their site (and from other whistleblowers), so some links in my previous work are blocked. If you’d like to search for those articles other sites may have republished, use words from the article title within the blocked link. Or, go to http://archive.org/web/, paste the expired link into the box, click “Browse history,” then click onto the screenshots of that page for each time it was screen-shot and uploaded to webarchive. I’ll update as “hobby time” allows; including my earliest work from 2009 to 2011 (blocked author pages: here, here).

25 Signs That The Global Elite’s Ship Is About To Sink

Posted on July 31, 2015 by Reid Mukai

By Lance Schuttler

Source: The Mind Unleashed

Make no mistake about it. The tide has turned on the global elite and there will be no going back. A new day is rising for humanity as those who have planned for complete control are now being exposed, cornered and investigated from many different angles. There is no need to buy into the fear-based propaganda the major media and even several alternative media outlets dispense. Very good things are happening and even better things are coming. Let’s take a look at some of the major stories that have occurred in the last 8 weeks alone. Piecing the puzzle together, we see that the jig is up and the events surrounding it are growing in size and speed.

1. 57 Nations approved as founding members of the China-led Asian Infrastructure Investment Bank. Notable countries who signed on June 29th, 2015 include Russia, India, Iran, Switzerland, Germany, France, Saudi Arabia, Australia, Indonesia, the UK, Italy and Austria. Notables who did not join are the U.S. and Japan.

2. May 12th, 2015: Russia asks Greece to join the BRICS Alliance. Notice the BRICS trend in the stories to follow.

3. May 24th, 2015: The Pentagon released documents to Judicial Watch, a government watchdog law firm,
proving that the US Government played a central role in creating ISIL. Interestingly, the mainstream media failed to cover this story. A few weeks later, ex US Intelligence officials confirm the report.

4. May 31st, 2015: Greece’s Prime Minister Alexis Tsipras writes an open letter, warns European leaders they are “making a grave mistake,” and suggests they re-read Hemingways’s “For Whom The Bell Tolls.”

5. June 2nd, 2015: The U.S. Federal Government was hacked as the personal data of 4 million current, former and prospective employees believed to have been breached. 3 weeks later FBI Director James Comey told US Senators the actual number could be 18 million. Some believe the hack was coordinated to gather further evidence
of crimes by certain government officials. More on that further down.

6. June 2nd, 2015: Kentucky Senator Rand Paul calls for the U.S. Government to declassify 28 pages in the 9/11 attack report that the Bush Administration blacked out.

7. June 3rd, 2015: Famous musician Akon announces his Solar Academy will bring solar power to over 600 million people in Africa. A major victory for clean energy and humanity.

8. June 4th, 2015: Whistle-blower Edward Snowden says a “profound difference” had occurred since releasing the NSA documents and that the balance of power has shifted in our world. Is he referring to the BRICS Alliance?

9. June 5th, 2015: “There Will Be A Reset of The Financial Industry.” The International Monetary Fund says the Chinese yuan is no longer undervalued. This sets the stage for the yuan to be recognized as a global reserve currency, something the U.S. Dollar (which is backed by war and oil) does not like.

10. June 7, 2015: Deutsche Bank, one of the world’s largest banks, co-CEO’s Jain and Fitschen resign. Two days later, German prosecutors raided the Bank’s headquarters in a criminal tax-fraud probe.

11. June 15, 2015: China says the G-7 Summit in Germany was a “gathering of debtors.” They mean this literally as the Bretton Woods western financial system is based on debt. And in fact, the entire western financial system has been running illegally and is technically bankrupt. For more on the real history of Bretton Woods and its connection to JFK, The Global Collateral Accounts and the gold standard, read here.

12. June 17th, 2015 is quite the day with the next four stories all being reported at that time. First, JP Morgan’s number 2, the Vice Chairman Jimmy Lee, suddenly and unexpectedly passes over. Since late 2013, the list of high-level banking officials to have passed over has grown to 70. Clearly, something is happening.

13. June 17, 2015: Russia and China announced that all natural gas and crude oil sales between
the two countries will now be done in Chinese yuan( formerly the U.S. Dollar) and will be convertible into Russian Rubles. The U.S. Dollar hegemony is waning.

14. June 17, 2015: The State of Texas has signed a bill that calls for the repatriation of their gold from the Federal Government. When asked what would happen if the government tried to steal back the gold, State Representative Giovanni Capriglione said this: There is a motto in the office of almost every state legislator in Texas, and it’s a flag that we have [from the Texas Revolution], it’s below a cannon and what the motto says is, “Come and Take it.”

15. June 17, 2015: Greece’s Hellenic Parliament’s Debt Truth Committee released a report stating that the debt Greece “owes” is illegal, illegitimate and odious, according to international law. Further, they stated the IMF and ECB ( European Central Bank) having illegally and knowingly imposed these illegitimate debts upon Greece and other nations. A direct call out to the global banking cartel.

16. June 18th, 2015: Baron David de Rothschild has been indicted by a French court over financial fraud. French police have been ordered by the court to track down Baron. The Rothschild family has long been viewed as the family sitting atop the global financial ponzi scheme. Lawyer Antonio Flores told reporters, ” it’s a real breakthrough moment for everyone involved.”

17. June 18, 2015: In a 2-1 ruling, the 2nd Circuit U.S. Court of Appeals says Bush era officials can be held liable for detaining innocent people after the 9/11 attack. Will this lead to some major arrests?

18. June 19, 2015: While European leaders try to save face on the debt crisis, Greek PM Alexis Tsipras was in Russia and gave a speech at the St. Petersburg Economic Forum, stating that “the economic center of the planet has already shifted” and that new powers are playing an “important role on an economic and geopolitical level.” * Reread story header number 8…BRICS, anyone? Oh, and Greece and Russia signed a €2 billion gas pipeline deal that day too…a strategic economic and geopolitical game-changer.

19. July 5th, 2015: Greece votes “NO” to the creditors’ bailout offer. This is a massive stance for humanity that Greece just took against the banking elite. As of this writing, a “deal” has been reached but is expected to fall apart in the coming days. Kicking the can down the road does not solve the issue, but rather speeds up the revolution mindset of many frustrated Greek citizens. September/October is when many financial experts are saying that some fireworks are to be expected.

20. July 7th, 2015: The BRICS Bank officially opens for business.

21. July 8th, 2015: On this day, several strange events occurred. The NYSE was taken down for multiple hours, the Wall Street Journal was taken offline just after the stock exchange went down, United Airlines was forced to ground all of its flights nationwide due to computer “issues,” and 2,500 people losing power in Washington D.C. This whistle-blower journalist just wrote that his Pentagon sources said the Pentagon/BRICS Alliance took it down as a “dry run.”

22. July 7th, 2015: Backing up one day we see that the hacking group Anonymous tweeted this on the evening prior to the stock exchange hack: Wonder if tomorrow is going to be bad for Wall Street….we can only hope.
David Wilcock has previously written a detailed document stating that Anonymous is working with certain patriotic US Military forces to legally take down the banking elite.. This aligns nicely with what the whistle-blower journalist, Benjamin Fulford, just wrote this week about the Pentagon and BRICS Alliance in the previous story.

23. July 14th, 2015: Iran, China, Russia, France, Germany, the U.K. and the U.S. reach a historic deal on Iran’s nuclear program. Entire books could be written on the geopolitical, financial and technological implications of this move. There are also reports that the reality of this situation is that Iran has free energy technology and will be using this to help bring down the banking/political/oil industry elite. This would make sense as the strongest opponents to this deal have been Israel and its Prime Minister and several American politicians like the Bushes, Marco Rubio and Ted Cruz.

24. July 15th, 2015: Santa Cruz County votes to stop doing business with 5 major banks, including JP Morgan Chase, Barclays, Citigroup, Royal Bank of Scotland and UBS. Watch this set off a chain reaction in those who will follow suit.

25. Now: You are here on the planet at this time to make a wonderful contribution. Please continue playing your role for the benefit of us all.

It is clear that something big is happening. Use this information to move forward with optimism and hope. Share with your friends. Discuss with your friends. Continue to search and dig for the truth. Two people I strongly suggest the reader looking into are Benjamin Fulford, the whistleblower who was the Asia Pacific Bureau Chief for Forbes Magazine and is listed in stories number 21 and 22, and Neil Keenan, who is working with many well connected sources to open up the global collateral accounts. These accounts are what President Kennedy was assassinated over and are what the banking elite does not want the public to know exists. This revolution WILL NOT be televised.

The Human Aversion to “Doing the Right Thing”

Posted on July 30, 2015 by Reid Mukai

Does Anyone Want to Make the World a Better Place?

By John Kozy

Source: Global Research

Does anyone want to make the world a better place? Do you know anyone who does? Have you known of anyone who has? Think carefully about these questions, because things are not always as they seem.

In 1863, President Abraham Lincoln issued an Executive Order as a wartime measure freeing the slaves in the ten states that were in rebellion. It freed about three quarters of the four million slaves in the United States at the time. The remainder were not freed until the Thirteenth Amendment to the Constitution was ratified in 1865. The order did not outlaw slavery and did not confer citizenship on those freed. It was merely a strategic measure, not a humanitarian gesture. Nevertheless, Lincoln has become known in American history as the Great Emancipator.

The war during which the order was issued resulted in the deaths of approximately three quarters of a million people, and the freedmen, as the former slaves were called, were left to fend for themselves. Many joined the army and after the war were sent West to fulfill America’s Manifest Destiny by killing Indians. What a magnificent event the issuance of the Emancipation Proclamation was. Men were freed from slavery so they could become Indian slayers. What a great contribution to the improvement of the human condition that was!

Yet in 1861, two years before the Emancipation Proclamation was issued, Tsar Alexander II, a brutal Russian Autocrat, abolished serfdom in Russia by merely signing a document. Lincoln’s order freed about three million slaves; the Tsar’s edict freed 23 million without firing a single shot, without killing a single person or causing a single person to have to fend for himself. How dastardly! What a barbarian! You would think that he could have killed at least half a million. After all, he was the Tsar! He was a brutal Russian, not a benevolent American!

Really? Who was the greater humanitarian? The Great Emancipator or the Tsar? Did either make the world a better place? Were people any better off after the edicts were issued than before? Did being freed sate any person’s hunger?

Lincoln was elected president of “a house divided.” He went to war to preserve the house, to preserve the union. He succeed marvelously. The house has been divided ever since! Was the world made any better by the war? Was the world any better after the war than it was before? Judge for yourselves. Were America’s Blacks any better off? Are they better off today? These questions are not easy to answer.

In 1889, Kaiser Wilhelm I of Germany enacted the world’s first old-age social insurance program which was designed by Germany’s arch-conservative Chancellor, Otto von Bismarck. In a letter to the German Reichstag. Wilhelm wrote: “. . . those who are disabled from work by age and invalidity have a well-grounded claim to care from the state.” How reactionary! Imagine a Kaiser caring about the well-being of workers? What in the world can we make of that?

A short time later—well, quite a bit later in 1935—Franklin Delano Roosevelt basically copied the German program and induced the Congress to enact it. Roosevelt may have been a man of the people, although he was not quick to come to that position, but he was no original thinker. Yet he has an endearing place in the hearts of Americans. German Kaisers do not! Humanitarianism just oozes out of the hearts of America’s political leaders, doesn’t it? Did Roosevelt make the world a better place? If so, did the autocratic Kaiser make it a better place too?

Between 1939 and 1941 New Zealand created the first universal health care system. Other nations soon followed: The United Kingdom in 1948, Sweden in 1955, Iceland and Norway in 1956, Denmark in 1961, Finland in 1964, Japan in 1961, Canada between 1968 and 1972, the Soviet Union in 1969, Australia in 1974 and 1984, Italy in 1978, Portugal in 1979, Greece in 1983, Spain in 1986, South Korea in 1989, Taiwan in 1995, Israel in 1995, the Netherlands in 1986 and 2006, and Switzerland in 1996. From the 1970s to the 1990s, the Western European countries of Austria, Belgium, France, Germany, and Luxembourg expanded their social health insurance systems to provide universal coverage. The United States of America? Well, not yet. Maybe someday. Perhaps never. Obama believes his reform of private health insurance has rendered universal healthcare unnecessary. America’s leading from behind—way behind—does not extend to improving the human condition, and America does not boast of belonging to this international sommunity.

These examples provide evidence for the assertion often inaccurately attributed to Winston Churchill that “Americans can always be counted on to do the right thing after they have exhausted all other possibilities.” But things are really much worse than that. When Americans do set out to do the right thing, they often do it so badly and so ineffectively that the pathos of the human condition is hardly improved at all. Healthcare in America is so poorly distributed that many people lack access to it under any conditions and every physical ailment is not covered by medical insurance. Many communities lack even one primary care physician; others boast of scores, and vision, hearing, and dental problems are not covered by most medical insurance plans, not even Medicare! But of course not! Why do people, especially the elderly, need to see, hear, or chew? Making the world a better place is not an American forte. Nor is it a forte in many other countries.

In trying to judge the value of something, the Romans often asked, “Cui bono?” Who benefits? is an important question. So is the question, Who suffers? For instance, when an elderly person whose hearing is impaired is denied a hearing aid, who benefits? Anyone at all? When an unemployed person is denied unemployment compensation, who benefits? Anyone? When a family with little or no income is denied nutritional assistance, who benefits? When an ill person is denied medical care, who benefits? And who benefits when a homeless family is denied a domicile? Who benefits when a school child is denied a lunch? Does anyone benefit? Yet who suffers is obvious, isn’t it? Helping no one and making many suffer is merely cruel, and being cruel is a moral fault. America and many other nations are not people-countries; they do not exist for the welfare of people. Making the world a better place is not something human beings do easily.

When people are denied these benefits, the deniers are engaged in simple cruelty. No, gratuitous cruelty inflicted gratuitously! The Earth is awash in it, and most of it is inflicted by human beings, many of whom are content to do nothing in the face of it. The American Congress has traditionally been know as a “do nothing” institution. And Edmund Burke, a very conservative political philosopher said, “The only thing necessary for the triumph of evil is for good men to do nothing.” When the American Congress or any political institution anywhere is content to do nothing to alleviate human suffering, it follows that the institution is aiding and abetting “the triumph of evil.” But something else follows as well. Those who do nothing are not good people! That, above all, needs to be made obvious. Bad people do nothing and aid and abet the triumph of evil in the world. So much for making the world a better place!

I asked above whether the American Civil War made the world a better place. Now the world is in a continuous war. The Western world is at war with most of the nations in the Middle East, North Africa, and is promoting war in Ukraine. The Sunnis are now are even being encouraged to kill other Sunnis. How can it possible end well? When the Kurds, who are being encouraged to kill Sunnis too and who live in Iraq, Syria, and Turkey, want to form a nation of their own, Kurdistan, and Turkey objects, who is the West going to support? The Kurds or a NATO partner?

Will there be no end to this killing? Is any human being’s life anywhere made better by all this killing? Was the life of any American bettered when Osama bin Laden was assassinated? Did that assassination sate any child’s hunger? Did the American economy suddenly awaken from the doldrums? Can’t you just see how much better off everyone is because of the killing frenzy? Apparently no one but the world’s leaders can.

Abba Eban, an Israeli diplomat, said in June 1967 at the United Nations that “The question is whether there is any reason to believe that . . . a new era may yet come to pass. If I am sanguine on this point, it is because of a conviction that men and nations do behave wisely once they have exhausted all other alternatives. Surely the other alternatives of war and belligerency have now been exhausted.”

How “hope springs eternal” even in the hearts of those who blankly stare into the abyss. The West, following America’s lead has proven that the alternatives of war and belligerency have not yet been exhausted. So let peoples everywhere be warned: if you are willing to follow America to the gates of Hell, be prepared to enter it. Those gates swing in only one direction!

The world will not become a better place until human beings want it to. Those who deny benefits to needy people and promote orgies of killing do not want it to. They want to protect the status quo. But denying benefits to the needy and promoting continuous war define the status quo. At least since Alexander the Great, war has been the instrument of what is now called foreign policy. They also comprise domestic policy in most nations. States can just as easily wage war against their own citizens as foreigners. Is this cruelty the essence of human nature? Will it ever be different?

Not until the questions, “Who benefits?” and “Who doesn’t?” are being answered, “The needy!” and “Nobody!”. The goal of human endeavor must become the welfare of human beings. Nothing good comes of doing otherwise.

John Kozy is a retired professor of philosophy and logic who writes on social, political, and economic issues. After serving in the U.S. Army during the Korean War, he spent 20 years as a university professor and another 20 years working as a writer. He has published a textbook in formal logic commercially, in academic journals and a small number of commercial magazines, and has written a number of guest editorials for newspapers. His on-line pieces can be found on http://www.jkozy.com/ and he can be emailed from that site’s homepage.

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