Category Archives: culture

Where is Neo When We Need Him — Paul Craig Roberts

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By Paul Craig Roberts

Source: PaulCraigRoberts.org

In The Matrix in which Americans live, nothing is ever their fault. For example, the current decline in the US stock market is not because years of excessive liquidity supplied by the Federal Reserve have created a bubble so overblown that a mere six stocks, some of which have no earnings commiserate with their price, accounted for more than all of the gain in market capitalization in the S&P 500 prior to the current disruption.

In our Matrix existence, the stock market decline is not due to corporations using their profits, and even taking out loans, to repurchase their shares, thus creating an artificial demand for their equity shares.

The decline is not due to the latest monthly reporting of durable goods orders falling on a year-to-year basis for the sixth consecutive month.

The stock market decline is not due to a week economy in which after a decade of alleged economy recovery, new and existing home sales are still down by 63% and 23% from the peak in July 2005.

The stock market decline is not due to the collapse in real median family income and, thereby, consumer demand, resulting from two decades of offshoring middle class jobs and partially replacing them with minimum wage part-time Walmart jobs without benefits that do not provide sufficient income to form a household.

No, none of these facts can be blamed. The decline in the US stock market is the fault of China.

What did China do? China is accused of devaluing by a small amount its currency.

Why would a slight adjustment in the yuan’s exchange value to the dollar cause the US and European stock markets to decline?

It wouldn’t. But facts don’t matter to the presstitute media. They lie for a living.

Moreover, it was not a devaluation.

When China began the transition from communism to capitalism, China pegged its currency to the US dollar in order to demonstrate that its currency was as good as the world’s reserve currency. Over time China has allowed its currency to appreciate relative to the dollar. For example, in 2006 one US dollar was worth 8.1 Chinese yuan. Recently, prior to the alleged “devaluation” one US dollar was worth 6.1 or 6.2 yuan. After China’s adjustment to its floating peg, one US dollar is worth 6.4 yuan. Clearly, a change in the value of the yuan from 6.1 or 6.2 to the dollar to 6.4 to the dollar did not collapse the US and European stock markets.

Furthermore, the change in the range of the floating peg to the US dollar did not devalue China’s currency with regard to its non-US trading partners. What had happened, and what China corrected, is that as a result of the QE money printing policies currently underway by the Japanese and European central banks, the dollar appreciated against other currencies. As China’s yuan is pegged to the dollar, China’s currency appreciated with regard to its Asian and European trading partners. The appreciation of China’s currency (due to its peg to the US dollar) is not a good thing for Chinese exports during a time of struggling economies. China merely altered its peg to the dollar in order to eliminate the appreciation of its currency against its other trading partners.

Why did not the financial press tell us this? Is the Western financial press so incompetent that they do not know this? Yes.

Or is it simply that America itself cannot possibly be responsible for anything that goes wrong. That’s it. Who, us?! We are innocent! It was those damn Chinese!

Look, for example, at the hordes of refugees from America’s invasions and bombings of seven countries who are currently overrunning Europe. The huge inflows of peoples from America’s massive slaughter of populations in seven countries, enabled by the Europeans themselves, is causing political consternation in Europe and the revival of far-right political parties. Today, for example, neo-nazis shouted down German Chancellor Merkel, who tried to make a speech asking for compassion for refugees.

But, of course, Merkel herself is responsible for the refugee problem that is destabilizing Europe. Without Germany as Washington’s two-bit punk puppet state, a non-entity devoid of sovereignty, a non-country, a mere vassal, an outpost of the Empire, ruled from Washington, America could not be conducting the illegal wars that are producing the hordes of refugees that are over-taxing Europe’s ability to accept refugees and encouraging neo-nazi parties.

The corrupt European and American press present the refugee problem as if it has nothing whatsoever to do with America’s war crimes against seven countries. I mean, really, why should peoples flee countries when America is bringing them “freedom and democracy?”

Nowhere in the Western media other than a few alternative media websites is there an ounce of integrity. The Western media is a Ministry of Truth that operates full-time in support of the artificial existence that Westerners live inside The Matrix where Westerners exist without thought. Considering their inaptitude and inaction, Western peoples might as well not exist.

More is going to collapse on the brainwashed Western fools than mere stock values.

Don’t Worry – Everything is Not Under Control

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By Zen Gardner

Source: ZenGardner.com

What a farce. Telling everyone “everything is under control” is perhaps the most dulling and disempowering phrase ever uttered.

My fascination with language just keeps expanding. I love looking at expressions, words, colloquialisms, so-called “sayings” and the like with fresh awakened eyes. I can’t help it. The supposed, accepted and unconscious meanings of these imposed “expressions” are what direct our minds and turn our attention.

So much of what we’ve been handed down is contorted, manipulated and eventually nestled in the collective mindset to twist our hearts away from simple truth.

How many times has this expression been used to bring seeming comfort to someone; “Don’t worry, everything’s under control.” Really? What control? Who’s controlling what? And why?

So often this is used to imply some powerful force is behind everything directing what’s going on. Remind you of anything? Yes – religion, hierarchy, and social, political and economic so-called “controllers”. How debilitating can you get when it comes right down to it, playing on people’s insecurity and lack of conscious awareness?

“It’s under control” is comforting to people? It’s the picture of personal disempowerment!

External Control? Or Creative Freedom!

Sure, there is a wonderful creative Source we are all intrinsically part of, but it’s not “controlling” anything in a living, expanding Universe with beings of all sorts with free will and self determination in an alive multidimensional environment. If anything, this Creative impetus is tearing down control systems that attempt to foist themselves on its process, put there either by conscious intent or the manifestation of hardening mindsets in the social fabric.

Earth processes attest to this, as well as our spectacular expanding and ever changing Universe. Nature itself is alive with new sprouts of life in the animal, plant and mineral worlds, never mind other realms of existence.

Look at earthquakes and volcanoes, or the sun and astral influences. As much as some try to analyze or predict major events that affect earth that still brings no control, only a measure of preparedness on rare occasion. And that type of insecurity is good for us. It’s humbling and keeps us in check.

This process is what the awakening is all about!

While some earth changes may be exacerbated by human activity, the big stuff is way out of our control. Thankfully. That’s what makes life life, and also why the insane would-be captivators of humanity and its planet work so feverishly in their mad pursuits to try to control natural processes. Control is their yardstick and without it they have no temporal security or power, which to them equates some weird form of normalcy or equilibrium.

How upside down can you get.

Be it geoengineering our climate, genetically modifying the natural progression of life forms, or attempting to install artificial intelligence to run their soulless programs, these maniacs are desperate for control in every shape and form. Why? They cannot meld or harmonize with what’s natural since their psychopathic, demonic intentions have nothing to gain, all while the rest of us thrive on being part of the fantastic empowering natural processes of Creation Itself.

Therein lies the rub. Quite apparently we’re in a world of conflicts of interest. That’s our current playing field, if you will. Or won’t. It’s just the way it is.

Let Go Into Conscious Anarchy

I like the anarchy approach. Anarchy is an example of another twisted word. It’s doesn’t mean putting a society into deliberate chaotic destruction, it means living without hierarchical control mechanisms. Something most groomed humans are scared spitless of thanks to generations of social programming.

You mean to tell me if we didn’t have so-called “government” that everything would fall apart? Baloney. People are resourceful and essentially responsible, at least their inner nature is, that hasn’t been perverted by all of this programming to the contrary. That very dependence on external control systems is what the hierarchy is literally banking on which is why the repeated memes of fear of scarcity or personal security.

There’s plenty for everybody. All we need to do is work together locally and share with other communities in a range of sizes and distances. Real commerce in loving cooperation, not the regulated systems that have been foisted upon us. We’ve been weaned from personal responsibility into a system of statist dependence, like someone who’s stopped using their muscles and is dependent on some mass produced contraption for their mobility when there’s nothing wrong with them at all.

They just need to exercise their innate capabilities.

Just because people have become spiritually atrophied in large numbers doesn’t mean that’s the way it’s supposed to be. Exactly like waking up, it’s time to arise and use the magnificent body of capabilities we’ve all been given, and let go of these false crutches and systems of hierarchy and walk into life and live!

Epilogue

That false assurance that everything’s under control by external forces as if we individually have virtually none has got to go. Being comforting in times of stress and turmoil is one thing, but propping people up with some external dependence reinforcement is fundamentally wrong.

It’s time to be conscious – in our words, our thoughts and our actions.

It’s really not that difficult. The main thing you’ll confront is ignorant, unenlightened opposition from those who’ve grown deeply accustomed to this dependency programming, as if it’s some form of respect for the “great ones” who rule them.

It’s very deep and will take time to overcome for most. But remaining in that conscious space, no matter what ridicule or obstacles assail you, is the very solution we each are longing for.

It begins with each of us. Standing our ground and then moving forward in conscious, loving action.

Do it. Bravely. The time for humanity to arise is now.

Much love, be well, and fully empowered,

Zen

ZenGardner.com

Saturday Matinee: Future Shock

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Future Shock: Orson Welles Narrates a 1972 Film About the Perils of Technological Change

By Jonathan Crow

Source: Open Culture

The beginning of the 1972 documentary Future Shock, directed by Alex Grasshof, shows Orson Welles, bearded and chomping on a cigar, standing on an airport people mover. He turns to the camera and delivers a monologue in his trademark silken baritone. “In the course of my work, which has taken me to just about every corner of the globe, I see many aspects of a phenomenon which I’m just beginning to understand. Our modern technologies have changed the degree of sophistication beyond our wildest dreams. But this technology has exacted a pretty heavy price. We live in an age of anxiety and time of stress. And with all our sophistication, we are in fact the victims of our own technological strengths –- we are the victims of shock… a future shock.”

The documentary itself is wonderfully dated. From its bizarre opening montage; to its soundtrack, which lurches from early electronic music to jazz funk; to some endearing video special effects, which, for whatever reason, mostly centers around Orson Welles’s head, the film feels thoroughly rooted in the Nixon administration. Yet many of the ideas discussed in the movie are, if anything, more relevant now than in the 1970s. Watch it above.

The term “future shock” was invented in Alvin Toffler’s hugely bestselling book of the same name to describe the constant, bewildering barrage of new technologies and all the resulting societal changes those technologies bring about. Anyone who has struggled to comprehend a new, baffling and supposedly essential social media platform, anyone who has been driven to paralysis over the number of choices on Netflix, anyone who found their livelihood decimated because of a hot new app knows what “future shock” is.

Toffler (along with his wife and uncredited co-writer Heidi Toffler) argued that we are in the midst of a massive structural change from an industrial society to a post-industrial one – a society that boggles the mind with an overload of information and an overload of consumer choices. “Change,” as they wrote, “is the only constant.”

Along the way, the Tofflers managed to predict the collapse of America’s manufacturing sector, along with things like Prozac, temp jobs, the internet and the meteoric rise and fall of insta-celebs (Alex from Target, we hardly knew you.) Other predictions – underwater cities, paper clothes and being able to choose your own skin color – haven’t yet come to pass. Still, they had a surprisingly good track record considering these predictions were written over four decades ago.

The video ends with a plea from not Welles, but Toffler himself, who is seen addressing college students.

If we can recognize that industrialism is not the only possible form of technological society, if we can begin to think more imaginatively about the future, then we can prevent future shock and we can use technology itself to build a decent, democratic and humane society. […] We can no longer allow technology just to come roaring down at us. We must begin to say “No” to certain kinds of technology and begin to control technological change, because we have now reached the point at which technology is so powerful and so rapid that it may destroy us, unless we control it. But what is the most important is we simply do not accept everything; that we begin to make critical decisions about what kind of world we want and what kind of technology we want.

 

Related Content:

Isaac Asimov Predicts in 1964 What the World Will Look Like Today — in 2014

Arthur C. Clarke Predicts the Future in 1964 … And Kind of Nails It

Walter Cronkite Imagines the Home of the 21st Century … Back in 1967

The Internet Imagined in 1969

Marshall McLuhan Announces That The World is a Global Village

Jonathan Crow is a Los Angeles-based writer and filmmaker whose work has appeared in Yahoo!, The Hollywood Reporter, and other publications. You can follow him at @jonccrow. And check out his blog Veeptopus, featuring lots of pictures of badgers and even more pictures of vice presidents with octopuses on their heads.  The Veeptopus store is here.

The Nature of American Denial

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By SARTRE

Source: Waking Times

At the core of self delusion is the inability and/or the unwillingness of facing reality. While psychological disorders can often explain abnormal behavior in individuals, the exegesis for deviant social attitudes and accompanying conduct is reserved for society. Or so we are told! But does this make sense to you? As long as you accept that reality does exist and that it can be understood, it follows that we have the right, the ability and the obligation to comprehend it and adjust our actions accordingly.

Most Americans view, of their own personal identity, is inculcated by the political culture. Delmar England, in his provocative work – Mind and Matters, The World in a Mirror – offers this valuable insights into our mutual and shared condition: “In human affairs, as surely as effect is preceded by action, action is preceded by belief, and belief is preceded by thought and conclusions.”

Applying this standard to politics Mr England depicts government is this fashion:

“For all the sidestepping, dance arounds, word games, and confused rhetoric, the term government is easily defined; not by subjective agreement, but by reference to objective reality and the actual entities involved. First, we know that there is no such thing as an infinite entity and that the term, government, necessarily denotes a relationship. The actual entities involved are human individuals. The base options of relationships between individuals are non-initiation of force and non-coercion, or initiation of force and coercion. It makes no difference how many different subjective labels are put upon the situation, the objective fact remains that at the root of it all, these are the only two options. The former is in recognition of the individual as a self-owned entity. The latter is based on the idea of an individual being the property of an “infinite entity”; which is the “justification” for rule by the individuals who hide behind the abstracts and exercise their will to dominate and control all others.”

“The subjective and arbitrary labels arbitrarily associated with government such as democracy, socialism, communism, etc. are purely for the purpose of self-delusion. Although form of implementation may vary and some versions start closer to ultimate self-destruction than other versions, the common and identifying objective content of each and every one is initiation of force and coercion. Millions may volunteer for such an anti-social system and play self-deluding word games for the sake of preferred self-image, but all the pretense in the world and “definitions by agreement” will not erase the truth about government, nor prevent the certain violent consequences of initiation of force and coercion.”

No doubt, this is a correct assessment. Virtually every society and country operates with the implied and universal acceptance that government is natural and ordained. The individual accepts force and coercion as a substitute for avoiding the risk and responsibility of personal Freedom. MindMatters concludes with this point:

“Rather than freedom being the highest value sought by most, it is their deepest and most abiding fear. So much so that they can’t even envision it.”

American denial has caused an epidemic dysfunctional confusion. The delusion that our own self identify is equivalent with the “collective will” of society; which, in turn is synonymous with the government and its policies, is a sociopathic sickness. The antisocial behavior of the STATE demonstrates all the characteristics of a profile of a sociopath. Apply the top five to the demeanor of government: Glibness/Superficial Charm – Manipulative and Conning – Grandiose Sense of Self – Pathological Lying – Lack of Remorse, Shame or Guilt. We are all taught what we should believe about government; but only the fool, the liar or the delusional accepts that our – self-owned entity – benefits from the force and coercion that the State demands upon us.

Robert L. Kocher has compiled a body of works far too numerous, on this topic to cite sufficiently. We urge you to review and absorb the wisdom in his insights. Most of the lessons detail the last administration, but are completely relevant to the current regime. One essay, especially compliments the Delmar England conclusion. Mr Kocher writes in American Mental Health and Politics:

“If some of us are appalled, frightened, and even driven half crazy by the maddeningly and complacently silly or psychotic levels of denial, by the superficiality, by the abysmal immaturity, by the primitive level of personality structure, by the too-easily employed distorted rationalizations, by the lack of contact with basic reality that we deal with in our daily lives, hear in our college faculties, and see on TV and in high political office, we can nevertheless know that the reality of our perceptions is validated by mental health figures as well as those patients being seen in therapist’s offices.”

Currently, the national mood is absorbed in the illusion that Americans are at risk and that they are in danger from terrorists abroad. While reality demonstrates that enemies of America are plentiful, the disconnect that their veridical hatred is focused upon the U.S. Government and its policies, is concealed. Vast numbers of Americans feed their denial that they are the target of madmen; while they seek comfort in the fallacy that support for the WAR Party will make them safe. The force and coercion that the government imposes upon you, under the pretext that it is necessary and protective, diminishes your safety as it destroys your Liberty. The utter fraud of national security policy, seeks only to preserve the government, no matter how much harm it inflicts upon citizens.

So why do so many misguided flag-waving zealots rally to a jingoistic cause? Kocher provides the answer: “We now live in a society where many people no longer want or value freedom. Personal freedom and the responsibility that goes with it are abrasive intrusions or demands upon a crippled self-absorbed internal state.”

“American Denial” prevents the admission that U.S. policies only benefit the government. Their own personal delusional perceptions are interchangeable with a phony litmus test, judged by their support for State illusions. The thought of exercising the Freedom to think, criticize, condemn and resist is far too disconcerting to the sheeple. They view their own self worth as an adjunct of an abstract deception; while, the true motives of the government are to control society and all individuals, using force and coercion. Both England and Kocher have it right. The association between an individual and an infinite entity denotes a relationship; and the reluctance or unwillingness to exercise freedom and responsibility, allows the government to implement force and coercion.

“Eternal Vigilance” is no longer enough to preserve Liberty. Sound mental health, appreciation for your own self worth, trust in the integrity of reality and the courage to do battle with the forces that seek to delude your own dignity are all necessary to win this struggle. America is NOT the Government. When policies are dishonest they must be opposed. When officials are depraved they need to be removed. And when your neighbor demands your allegiance to a corrupt government, it is your duty to confront his delusion.

We can no longer afford to be silent in the face of “American Denial”.

 

About the Author

SARTRE is the mind behind BATR. org (Breaking All The Rules), which documents the steady decline of American exceptionalism.

Hawaii Sees 10 Fold Increase in Birth Defects After Becoming GM Corn Testing Ground

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By Jay Syrmopoulos

Source: The Free Thought Project

Waimea, HI – Doctors are sounding the alarm after noticing a disturbing trend happening in Waimea, on the island of Kauai, Hawaii. Over the past five years, the number of severe heart malformations has risen to more than ten times the national rate, according to an analysis by local physicians.

Pediatrician Carla Nelson, after seeing four of these defects in three years, is extremely concerned with the severe health anomalies manifesting in the local population.

Nelson, as well as a number of other local doctors, find themselves at the center of a growing controversy about whether the substantial increase in severe illness and birth defects in Waimea stem from the main cash crop on four of the six islands, genetically modified corn, which has been altered to resist pesticide.

Hawaii has historically been used as a testing ground for almost all GMO corn grown in the United States. Over 90% of GMO corn grown in the mainland U.S. was first developed in Hawaii, with the island of Kauai having the largest area used.

According to a report in The Guardian:

In Kauai, chemical companies Dow, BASF, Syngenta and DuPont spray 17 times more pesticide per acre (mostly herbicides, along with insecticides and fungicides) than on ordinary cornfields in the US mainland, according to the most detailed study of the sector, by the Center for Food Safety.

That’s because they are precisely testing the strain’s resistance to herbicides that kill other plants. About a fourth of the total are called Restricted Use Pesticides because of their harmfulness. Just in Kauai, 18 tons – mostly atrazine, paraquat (both banned in Europe) and chlorpyrifos – were applied in 2012. The World Health Organization this year announced that glyphosate, sold as Roundup, the most common of the non-restricted herbicides, is “probably carcinogenic in humans”.

Waimea is a small town that lies directly downhill from the 12,000 acres of GMO test fields leased mainly from the state. Spraying takes place often, sometimes every couple of days. Residents have complained that when the wind blows downhill from the fields, the chemicals have caused headaches, vomiting, and stinging eyes.

“Your eyes and lungs hurt, you feel dizzy and nauseous. It’s awful,” local middle school special education teacher Howard Hurst told the Guardian. “Here, 10% of the students get special-ed services, but the state average is 6.3%,” he says. “It’s hard to think the pesticides don’t play a role.”

To add insult to injury, Dow AgraSciences’ main lobbyist in Honolulu, until recently, actually ran the main hospital in town. Although only 1,700ft away from a Syngenta field, the hospital has never done any research into the effects of pesticides on its patients.

Hawaiians have attempted to reign in the industrial chemical/farming machine on four separate occasions over the past two years. On August 9 an estimated 10,000 people marched through Honolulu’s main tourist district to protest the collusion of big business and state putting profits over citizens’ health.

“The turnout and the number of groups marching showed how many people are very frustrated with the situation,” native Hawaiian activist Walter Ritte said.

Hawaiians have also attempted to use a ballot initiative to force a moratorium on the planting of GMO crops, according to The Guardian:

In Maui County, which includes the islands of Maui and Molokai, both with large GMO corn fields, a group of residents calling themselves the Shaka Movement sidestepped the company-friendly council and launched a ballot initiative that called for a moratorium on all GMO farming until a full environmental impact statement is completed there.

The companies, primarily Monsanto, spent $7.2m on the campaign ($327.95 per “no” vote, reported to be the most expensive political campaign in Hawaii history) and still lost.

Again, they sued in federal court, and, a judge found that the Maui County initiative was preempted by federal law. Those rulings are also being appealed.

Even amidst strong public pressure, the chemical companies that grow the GMO corn have continued to refuse to disclose the chemicals they are using, as well as the specific amounts of each chemical being used. The industry and its political cronies have continually insisted that pesticides are safe.

“We have not seen any credible source of statistical health information to support the claims,” said Bennette Misalucha, executive director of Hawaii Crop Improvement Association in a written statement distributed by a publicist.

Nelson pointed out that American Academy of Pediatrics’ report, Pesticide Exposure in Children, found “an association between pesticides and adverse birth outcomes, including physical birth defects,” going on to note that local schools have twice been evacuated and kids sent to the hospital due to pesticide drift. “It’s hard to treat a child when you don’t know which chemical he’s been exposed to.”

Sidney Johnson, a pediatric surgeon at the Kapiolani Medical Center for Women and Children who oversees all children born in Hawaii with major birth defects says he’s noticed that the number of babies born here with their abdominal organs outside. This is a rare condition known as gastroschisis and has grown from three a year in the 1980s to about a dozen now, according to The Guardian.

Johnson and a team of medical students have been studying hospital records to determine if any of the parents of the infants with gastroschisis were residing near fields that were undergoing spraying during conception and early pregnancy.

“We have cleanest water and air in the world,” Johnson said. “You kind of wonder why this wasn’t done before,” he says. “Data from other states show there might be a link, and Hawaii might be the best place to prove it.”

It was recently revealed that these chemical companies, unlike farmers, are allowed to operate under an antiquated decades-old Environmental Protection Agency permit. This permit was grandfathered in from the days of sugar plantations when the amounts and toxicities were significantly lower, and which allowed for toxic chemicals to be discharged into water. Tellingly the state of Hawaii has asked for a federal exemption to allow these companies to continue to not comply with modern standards.

The ominous reality of collusion between these mega-corporations and the political class in Hawaii has seemingly left the citizens of the state with virtually no ability to safeguard their children’s health. We tread dangerously close to corporate fascism when profits are put above the health of the people.

Jay Syrmopoulos is an investigative journalist, free thinker, researcher, and ardent opponent of authoritarianism. He is currently a graduate student at University of Denver pursuing a masters in Global Affairs. Jay’s work has been published on BenSwann’s Truth in Media, Chris Hedges’s Truth-Out, AlterNet, InfoWars, MintPress News and many other sites. You can follow him on Twitter @sirmetropolis, on Facebook at Sir Metropolis and now on tsu.

Systemic Corruption Has Destroyed America

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Source: Washington’s Blog

Preface: There’s always been some corruption in the United States … but it’s never been this bad before.

The Cop Is On the Take

Government corruption has become rampant:

  • Senior SEC employees spent up to 8 hours a day surfing porn sites instead of cracking down on financial crimes
  • NSA spies pass around homemade sexual videos and pictures they’ve collected from spying on the American people
  • Investigators from the Treasury’s Office of the Inspector General found that some of the regulator’s employees surfed erotic websites, hired prostitutes and accepted gifts from bank executives … instead of actually working to help the economy
  • The Minerals Management Service – the regulator charged with overseeing BP and other oil companies to ensure that oil spills don’t occur – was riddled with “a culture of substance abuse and promiscuity”, which included “sex with industry contacts”
  • Agents for the Drug Enforcement Agency had dozens of sex parties with prostitutes hired by the drug cartels they were supposed to stop (they also received money, gifts and weapons from drug cartel members)
  • The former chief accountant for the SEC says that Bernanke and Paulson broke the law and should be prosecuted
  • The government knew about mortgage fraud a long time ago. For example, the FBI warned of an “epidemic” of mortgage fraud in 2004. However, the FBI, DOJ and other government agencies then stood down and did nothing. See this and this. For example, the Federal Reserve turned its cheek and allowed massive fraud, and the SEC has repeatedly ignored accounting fraud (a whistleblower also “gift-wrapped and delivered” the Madoff scandal to the SEC, but they refused to take action). Indeed, Alan Greenspan took the position that fraud could never happen
  • Paulson and Bernanke falsely stated that the big banks receiving Tarp money were healthy, when they were not. The Treasury Secretary also falsely told Congress that the bailouts would be used to dispose of toxic assets … but then used the money for something else entirely
  • Congress has exempted itself from the healthcare rules it insists everyone else follow
  • Law enforcement also grabs massive amounts of people’s cash, cars and property … even when people aren’t CHARGED with – let alone convicted of – any crime
  • Private prisons are huge profit-making centers for giant companies, and private prison corporations obtain quotas from the government, where the government guarantees a certain number of prisoners at any given time
  • The government covered up the health risks to New Orleans residents associated with polluted water from hurricane Katrina, and FEMA covered up the cancer risk from the toxic trailers which it provided to refugees of the hurricane.  The Centers for Disease Control – the lead agency tasked with addressing disease in America – covered up lead poisoning in children in the Washington, D.C. area (the Centers for Disease Control has also been outed as receiving industry funding)
  • In response to new studies showing the substantial dangers of genetically modified foods, the government passed legislation more or less PUSHING IT onto our plates
  • The Bush White House worked hard to smear CIA officers, bloggers and anyone else who criticized the Iraq war
  • The FBI smeared top scientists who pointed out the numerous holes in its anthrax case. Indeed, the head of the FBI’s investigation agrees that corruption was rampant
  • The government has intentionally whipped up hysteria about terrorism for cynical political purposes.  For example, former Secretary of Homeland Security Tom Ridge admitted that he was pressured to raise terror alerts to help the president win reelection
  • When the American government got caught assassinating innocent civilians, it changed its definition of “enemy combatants” to include all young men – between the ages of say 15 and 35 – who happen to be in battle zones. When it got busted killing kids with drones, it changed the definition again to include kids as “enemy combatants”
  • The government treats journalists who report on government corruption as CRIMINALS OR TERRORISTS.  And it goes to great lengths to smear them. For example, when USA Today reporters busted the Pentagon for illegally targeting Americans with propaganda, the Pentagon launched a SMEAR CAMPAIGN against the reporters

The biggest companies own the D.C. politicians. Indeed, the head of the economics department at George Mason University has pointed out that it is unfair to call politicians “prostitutes”. They are in fact pimps … selling out the American people for a price.

Government regulators have become so corrupted and “captured” by those they regulate that Americans know that the cop is on the take. Institutional corruption is killing people’s trust in our government and our institutions.

Neither the Democratic or Republican parties represent the interests of the American people.  Elections have become nothing but scripted beauty contests, with both parties ignoring the desires of their own bases.

Indeed, America is no longer a democracy or republic … it’s officially an oligarchy. And the allowance of unlimited campaign spending allows the oligarchs to purchase politicians more directly than ever.

No wonder polls show that the American people say that the system is thoroughly corrupt.

Moreover, there are two systems of justice in America … one for the big banks and other fatcats … and one for everyone else. Indeed, Americans have .

Big Corporations Are Also Thoroughly Corrupt

But the private sector is no better … for example, the big banks have literally turned into criminal syndicates engaged in systemic fraud.

Wall Street and giant corporations are literally manipulating every single market.

And the big corporations are cutting corners to make an extra penny … wreaking havoc with their carelessness. For example:

  • U.S. military contractors have pocketed huge sums of money earmarked for humanitarian and reconstruction aid. And see this (whistleblowers alerted the government about the looting of Iraq reconstruction funds, but nothing was done)
  • There is systemic corruption among drug companies, scientific journals, university medical departments, and medical groups which set the criteria for diagnosis and treatment

(Further examples here, here, here, here and here.)

We’ve Forgotten the Lessons of History

The real problem is that we need to learn a little history:

  • We’ve known for thousands of years that – when criminals are not punished – crime spreads
  • We’ve known for centuries that powerful people – unless held to account – will get together and steal from everyone else

Beyond Partisan Politics

Liberals and conservatives tend to blame our country’s problems on different factors … but they are all connected.

The real problem is the malignant, symbiotic relationship between big corporations and big government.

 

Wall Street Panic

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panicked trader

By Mike Whitney

Source: Counterpunch

“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.