The Everything Bubble and Global Bankruptcy

By Charles Hugh Smith

Source: Of Two Minds

The resulting erosion of collateral will collapse the global credit bubble, a repricing/reset that will bankrupt the global economy and financial system.

Scrape away the complexity and every economic crisis and crash boils down to the precarious asymmetry between collateral and the debt secured by that collateral collapsing. It’s really that simple.

In eras of easy credit, both creditworthy and marginal borrowers are suddenly able to borrow more. This flood of new cash seeking a return fuels red-hot demand for conventional assets considered “safe investments” (real estate, blue-chip stocks and bonds), demand which given the limited supply of “safe” assets, pushes valuations of these assets to the moon.

In the euphoric atmosphere generated by easy credit and a soaring asset valuations, some of the easy credit sloshes into marginal investments (farmland that is only briefly productive if it rains enough, for example), high-risk speculative ventures based on sizzle rather than actual steak and outright frauds passed off as legitimate “sure-fire opportunities.”

The price people are willing to pay for all these assets soars as the demand created by easy credit increases. And why does credit continue increasing? The assets rising in value create more collateral which then supports more credit.

This self-reinforcing feedback appears highly virtuous in the expansion phase: the grazing land bought to put under the plow just doubled in value, so the owners can borrow more and use the cash to expand their purchase of more grazing land. The same mechanism is at work in every asset: homes, commercial real estate, stocks and bonds: the more the asset gains in value, the more collateral becomes available to support more credit.

Since there’s plenty of collateral to back up the new loans, both borrowers and lenders see the profitable expansion of credit as “safe.”

This safety is illusory, as it’s resting on an unstable pile of sand: bubble valuations driven by easy credit. We all know that price is set by what somebody will pay for the asset. What attracts less attention is price is also set by how much somebody can borrow to buy the asset.

Once the borrower has maxed out their ability to borrow (their income and assets-owned cannot support more debt) or credit conditions tighten, then those who might have paid even higher prices for assets had they been able to borrow more money can no longer borrow enough to bid the asset higher.

Since price is set on the margin (i.e. by the last sales), the normal churn of selling is enough to push valuations down. At first the euphoria is undented by the decline, but as credit tightens (interest rates rise and lending standards tighten, cutting off marginal buyers and ventures) then buyers become scarce and skittish sellers proliferate.

Questions about fundamental valuations arise, and sky-high valuations are found wanting as tightening credit reduces sales, revenues and profits. Once the “endless growth” story weakens, the claims that bubble prices are “fair value” evaporate.

As defaults rise, lenders are forced to tighten credit further. The first tumbling rocks are ignored but eventually the defaults trigger a landslide, and the credit-inflated bubble in asset valuations collapses.

As valuations plummet, so too does the collateral backing all the new debt. Debt that appeared “safe” is soon exposed as a potential push into insolvency. When the bungalow doubled in value from $500,000 to $1 million, the trajectory of valuation gains looked predictably rosy: every decade housing prices went up 30% or more. So originating a mortgage for $800,000 on a house that looked to be worth $1.3 million in a few years looked rock-solid safe.

But the $1 million was a bubble based solely on easy, abundant, low-cost credit. When credit tightens, the home is slowly but surely repriced at its pre-bubble valuation ($500,000) or perhaps much lower, if that value was merely an artifact of a previous unpopped bubble.

Now the collateral is $300,000 less than the mortgage. The owner who made a down payment of $200,000 will be wiped out by a forced sale at $500,000, and the lender (or owner of the mortgage) will take a $300,000 loss.

Given the banking system is set up to absorb only modest, incremental losses, losses of this magnitude render the lender insolvent. The lender’s capital base is drained to zero by the losses and then pushed into negative net-worth by continued losses.

The collateral collapses when bubbles pop, but the debt loaned against the now-phantom collateral remains.

This is the story of the Great Depression, a story that’s unloved because it calls into question the current series of credit-inflated bubbles and resulting financial crises. So the story is reworked into something more palatable such as “the Federal Reserve made a policy error.”

This encourages the fantasy that if central banks choose the right policies, credit bubbles and valuations detached from reality can both keep expanding forever. The reality is credit bubbles always pop, as the expansion of borrowing eventually exceeds the income and collateral of marginal borrowers, and this tsunami of cash eventually pours into marginal high-risk speculative vebtures that go bust.

There is no way to thread the needle so credit-asset bubbles never pop. Yet here we are, watching the global Everything Bubble finally start collapsing, guaranteeing the collapse of collateral and all the debt issued on that collateral, and the rabble is arguing about what policy tweaks are needed to reinflate the bubble and save the global economy from bankruptcy.

Sorry, but global bankruptcy is already baked in. Too much debt has been piled on phantom-collateral and income streams derived from bubble assets rising (for example, capital gains, development taxes, etc.). The asymmetry is now so extreme that even a modest decline in asset valuations/collateral due to a garden-variety business-cycle recession of tightening financial conditions will trigger the collapse of The Everything Bubble and the mountain of global debt resting on the wind-blown sands of phantom collateral.

There are persuasive reasons to suspect global debt far exceeds the official level around $300 trillion, most saliently, the largely opaque shadow banking system. When assets roughly double in a few years, bubble symmetry suggests that valuations will decline back to the starting point of the bubble in roughly the same time span.

The resulting erosion of collateral will collapse the global credit bubble, a repricing/reset that will bankrupt the global economy and financial system.

The Plight of a Woman Who Questioned Vaccine Safety in Malaysia

By Simay B

Source: TrialSite News

Since 2021, a legal tussle has persisted between a single mother, Liyana Razali, and the Malaysian government. This is due to her statements concerning the safety of COVID-19 vaccines for 12-17 year-olds. The government outlawed Razali’s statement for fear that the public would develop negative perceptions of the vaccine, which could jeopardize the vaccination program. She was allegedly subjected to police harassment, media defamation, and a 30-day detention at Ulu Kinta Mental Hospital. TrialSite is following the controversial issue of vaccinating children against COVID-19, as well as the medical community’s perspective on this topic.

Razali made her speech on September 28, 2021, in front of the Ministry of Higher Education. She said, “Here I would like, on behalf of today’s parents who are present at the Ministry of Higher Education Malaysia … to express our solidarity with parents.” She went on to name three families whose children were experiencing side effects following COVID-19 vaccinations, or had passed away shortly after receiving the vaccines. She also referred to three other children who had died after being vaccinated: two students at Sekolah Menengah Kebangsaan Tasik Damai in Ipoh, and one teenager in Lahad Datu, Sabah.

As well as expressing solidarity, she called on listeners to report side effects through the proper channels. “Report it to the authorities,” she said. “Do not just post them on social media. Come forward, and send your information, and we will try to fight for your rights.”

Police Intervention and Possible Misinterpretation of Razali’s Speech in Mainstream Media

Five days later (October 3), Razali was called to the police station for questioning. They asked her, without having official paperwork, to appear at a magistrates court. When she was asked to appear at Ipoh Magistrates Court on November 30, 2021, they cancelled the court appointment.

Meanwhile, the news of the police looking for Razali was published in mainstream media, including her photograph and home address. The reports stated that she had made “false COVID vaccine claims,” and that her allegations that students had died after receiving the vaccine were untrue.

The police returned on May 20, 2022, with an arrest warrant from Putrajaya Magistrates Court. They took Razali to court, where she refused to enter a plea for lack of a verified criminal complaint against her. The deputy public prosecutor (DPP) proposed a 30-day observation in Ulu Kinta Mental Hospital, to which the magistrate agreed.

Lawyers’ attempts to get Razali out were rejected. The DPP took a long time in building a case against her, and the trial began on November 22, 2022.

Exception in Penal Code 505

Razali has been charged under Penal code 505 (b), which states, “Whoever makes, publishes, or circulates any statement, rumor, or report with intent to cause, or which is likely to cause, fear or alarm to the public, or to any section of the public whereby any person may be induced to commit an offense against the State or against the public tranquility.” This implies that the government is claiming that her words were intended to cause public distress, which might incite the public to rally against the state.

Razali’s lawyers petitioned the DPP to apply the exception to penal code 505 (b), which reads, “It does not amount to an offense within the meaning of this section, when the person making, publishing, or circulating any such statement, rumor, or report has reasonable grounds for believing that such statement, rumor, or report is true and makes, publishes or circulates it without any such intent as aforesaid.”

Based on this exception, if Razali had reasonable grounds to believe her statement was true at the time she said it, her actions were not against the law. Her representation was rejected without reason, and the case was motioned to continue.

The Appearance of Seven Witnesses in Razali’s Case

After Razali’s speech, over a period of almost one year, the DPP arranged for a range of people to testify against her. Seven of them have since appeared in court to testify and under cross-examination they have admitted that their previous statements had been influenced rather than being their own stand.

Two Ministry of Health (MOH) workers participating in the vaccine rollout claimed that they had been ordered to write their reports. Two MOH doctors and Ipoh school’s headmaster said that they had filed reports with the police out of fear of jeopardizing the vaccination program. Fathers of the two deceased Ipoh children had been summoned and instructed to testify that their children had died before vaccination.

The witnesses helped to shed some light on Razali’s case and how the public had perceived her speech, and the failure to stand their ground for fear of the government.

Doctors’ Testimonies

The doctors who have so far testified have claimed that the COVID-19 vaccine’s side effects were not severe and included allergies, Bell’s palsy, and myocarditis.

At least one witness for the government, a medical doctor, also said that when seeking consent from parents or guardians, there was no need to spend time on obtaining fully informed consent because it was all too complex for most people to understand, so there was no point wasting time like this. These witnesses also stated, however, that once consent had been given, patients must be responsible for any negative effects.

Effectiveness of COVID-19 Vaccines

According to the Centers for Disease Control and Prevention (CDC), COVID-19 vaccines are safe and effective at preventing severe illness, hospitalization, or death.

Several studies have further demonstrated the effectiveness of these vaccines. One such study is a Hong Kong population-based observational study conducted in 2022. Results from this study revealed that two doses of the CoronaVac or BNT162b2 vaccines offered protection against severe illness or death within 28 days of a positive SARS-CoV-2 test.

Another study previously reported by TrialSite on COVID-19 vaccines for teens 12-17 years old has been carried out and continues in various regions globally. Pfizer-BioNTech and Moderna mRNA vaccines are indicated by the vaccine companies to be safe and effective at preventing severe infections for this age bracket.

Furthermore, in 2021, the Global Advisory Committee on Vaccine Safety (GACVS) resolved that the benefits of mRNA COVID-19 vaccines far outweighed their risks.

The Risk of COVID-19 Vaccine Side Effects

There is data from around the world showing safety warning signals following the COVID-19 vaccine (including severe disability and death). However, according to the World Health Organization (WHO) there are only a few cases of very rare adverse severe events, namely myocarditis and pericarditis, that have been reported so far. These conditions were mainly observed in younger men aged 16-24 years and occurred after the second dose of an mRNA COVID-19 vaccine. Generally, the conditions appeared within a few days after vaccination. The WHO indicates that these injuries were mild and responsive to conservative treatment.

The Malaysian Ministry of Health (KKM) informed the media in January 2023 that over 94% of reported vaccine reactions to Pfizer-BioNTech’s Comirnaty had been mild, but that “a small number” amounting to 1,162 serious cases of effects such as anaphylaxis, acute facial paralysis, myocarditis, and intravenous thrombosis had been recorded. This followed more than one year of claims by KKM that there had been no serious post-vaccine injuries reported in Malaysia.

These figures are similar to those reported by the CDC for teen vaccine reactions, which found 91.6% of cases were nonserious, and only 8.4% were severe. Common side effects after vaccination include headaches, muscle or joint soreness, fever, nausea, and vomiting. The injected area may redden, swell, itch, or have some pain. Most people recover quickly from the side effects, including the rare myocarditis and pericarditis cases reported after vaccination, which are claimed to be not as severe as those caused by COVID-19 infection.

These claims have been contested by world-leading cardiologists, such as Dr. Peter McCullough in the U.S. and Dr. Aseem Malhotra from the UK, who cite research showing that identified myocarditis and pericarditis from the vaccines is more severe than COVID-19-induced cardiac effects. The CDC continues to investigate the long-term effects of myocarditis after COVID-19 vaccination.

In addition, results from randomized control trial data from Pfizer, released under a court order in the U.S., demonstrated that over 1228 deaths occurred after the administration of the Pfizer vaccine. Additionally, 42,086 individuals reported 158,893 adverse events within a 3-month period.

A study done in Thailand in mid-2022 showed that 3.5% of boys showed evidence of pericarditis or myocarditis after the second dose of the Pfizer-BioNTech COVID-19 vaccine.

Research from other countries, such as that done on 12th-grade South Korean students, has shown a low rate of serious adverse events and no vaccine-related deaths. Other studies that targeted Israeli adolescents 16-19 years old put the risk of myocarditis at 1.34 per 100,000 within twenty days after the first dose and 15.07 per 100,000 after the second dose. In the U.S., the rates were 12 cases per million people (12-39 years) who received the second dose of the mRNA vaccine.

However, in March 2023, the Israeli Ministry of Health covertly released a new study showing large numbers of deaths within 60 days of receiving an mRNA COVID-19 vaccine.

In December 2021, health officials in Vietnam had to suspend the use of the Pfizer vaccine after the hospitalization of over 120 children following a group vaccination at school. Additionally, three children died from an overreaction to the vaccine in Bac Giang, a province near Hanoi, and Binh Phuoc, a province in the south.

The Case Continues

Despite the Malaysian Ministry of Health’s firm stance that the COVID-19 vaccines are perfectly safe, Razali is not the only person flagging potential adverse reactions. In the same week that Razali delivered her speech, a vaccination program in Malaysia’s Kajang prison resulted in 18 serious adverse events and two deaths in under 2,500 people. The prison director’s letter to the regulatory department and health office went viral after being leaked.

The health minister claimed that there were no deaths in Malaysia linked to the COVID-19 vaccine while confirming that 535 deaths reported as adverse events “were not directly linked to the vaccines” according to postmortem results. However, an autopsy of 40 people who died within two weeks of vaccination conducted at the University of Heidelberg in Germany showed that specific techniques and stains are required to detect the effect of the vaccine at a cellular level on postmortem. The head of the autopsy project, Peter Schirmacher, concluded that between 30 to 40% of the deaths his team examined had resulted from the vaccination, and might have been missed by regular postmortem protocols.

As with anyone accused of breaking the law, Razali deserves a fair hearing before a court of law to establish whether or not her public statements were in any way a violation of Penal code paragraph 505 (b), especially given the exception that is an integral part of that clause.

As research on COVID-19 vaccine administration to teens between 12-17 years continues, organizations urge parents or guardians to report serious cases for further assessment.

Don’t Believe Anything – But Recognize the Verge of a New Dark Age

By Phil Butler

Source: New Eastern Outlook

A decade ago, discovering every significant media outlet in the western world as tabloid news would have been inconceivable. Well, the unbelievable is all around us pounding pure lies into our brains on behalf of people eviler than Emperor Caligula. Just Google Putin, Russia, or even China, and with some effort, you’ll see what I mean.

In the mainstream, your average American gets, President Joe Biden is some kind of Dwight Eisenhower or Harry Truman figure. A man who cannot find his way off a stage or navigate the White House lawn is somehow a fit chess competitor for Vladimir Putin. The latest snafu is about his visit with Ukraine’s Zelensky a day before Putin spoke about a new phase of Russian policy. The CNN headline read “Biden’s Ukraine visit upstages Putin and leaves Moscow’s military pundits raging.” As an American who served his country in the military and other capacities, it’s sickening. Get this.

These media outlets and the Neocons have Americans believing a Chinese weather balloon that blew off course was gathering vital US nuclear missile silo intel. And Joe Biden waited until it flew all the way across the country before launching a multi-million-dollar F-22 strike to kill the spy machine. Days later, US fighter pilots shot down UFOs over Alaska. The only positive note after that was the Internet memes poking fun at the senile President and our goofball policies. Oh, but there’s more, oh so much more.

The New York Times and the rest are providing pushback on the Biden-authorized Nord Stream sabotage reported by one of the world’s most respected investigative journalists, Seymour Hersh. The guy who uncovered the My Lai massacre and its cover-up during the Vietnam War, key facts on Watergate, CIA domestic spy, and a lot more busted the Biden administration for using Navy Seals to detonate undersea charges dooming a Russia to Germany gas pipeline. The Pulitzer Prize-winning journalist’s revelations should have caused a media frenzy, a UN summit, and a NATO emergency meeting. But the people in charge can’t have that. The story of the decade so far is being slid under the rug. The reason why is explained in something Russian Foreign Minister Sergey Lavrov said recently:

“In many cases, ruling elites in unfriendly countries do not act of their free will, but only because they must show solidarity within their block. NATO and the EU enforce heavy-handed discipline on their members at the initiative of an aggressive minority.”

“How America Took Out The Nord Stream Pipeline” should be a reason for Biden’s impeachment hearings to be planned. The Germans should be banning US military personnel from their borders. And the Russians should probably go ahead and declare war when it all pans out true. We have this from Hersh’s sources and research:

“Last June, the Navy divers, operating under cover of the highly publicized NATO exercise known as BALTOPS 22, planted the remotely triggered explosives that, three months later, destroyed three of the four Nord Stream pipelines, according to a source with knowledge of the operational planning.”

The pipelines, which supplied Germany and much of Europe with cheap gas to run industry and fueled the lives of millions, were sabotaged without so much as a mention of the plan to America’s lawmakers. Hersh went on to describe how Biden, Jake Sullivan, Victoria Nuland, and Anthony Blinken were key conspirators in the illegal plan to undermine a NATO ally just to get to Putin and Russia. Biden had announced months before, after a meeting with Germany’s Scholz, that if Russia invaded Ukraine, “there would be no pipeline.”

Of course, Biden and his scandalous minions knew Russia had to act to prevent further NATO shenanigans in Ukraine, as we learned from the revelations of former German Chancellor Angela Merkel about the Minsk accords being a ruse. Talk about world-class liars and thugs. America’s leadership makes the worst Israeli mafioso seem harmless as Mickey Mouse. These people will get our world blown up.

Now Biden, Zelensky, all the EU criminals, and even exiled Putin enemy and Russian mafioso Mikhail Borisovich Khodorkovsky have been seen at the Munich Security Council predicting Putin’s demise—some more. Once we’d have thought US presidents, New York Times publishers, and killer thugs kicked from Russia like bullying kids from the schoolyard would be strange bedfellows. But this Biden administration has to be the most corrupt bunch since the days of Al Capone and Lucky Luciano.

Get this, one of the men involved in the Hunter Biden laptop affair, Prof. Gal Luft, is now in leg irons in a Cyprus jail awaiting extradition to the US for, you won’t believe it, being an arms dealer. Luft had helped the FBI and other agencies with highly incriminating facts about Hunter Biden, and now he’s on a path like Jeffrey Epstein or Julian Assange. Hanged by the neck, or something like that. Oh, and congressional investigators are asking who paid millions of dollars for Hunter Biden’s art? The lunacy goes on, and on, and on.

I’ll leave off with the European Parliament bosses blocking public scrutiny of Ursula von der Leyen over a Pfizer contract she clearly benefitted from. And Pfizer gate is not the EU President’s only worry. She’s now pledged another €1 billion for Ukraine’s fast recovery. That is, if there is a Ukraine to rebuild once western weapons and mercenaries force the Russians to obliterate the country just to keep NATO and bio-weapons labs out. For me, it now seems obvious why the liberal world order has gone all in with this proxy war against Russia. If the citizens of our countries ever find out what their leaders have really done, there will be public hangings Mussolini style across the NATO cabal.

So, forget the tabloids except to use reverse psychology for understanding the news. If the White House says we did not blow up Nord Stream, you can bet your last dollar we did. Think about our track record, America’s I mean. Our leaders operate like very drunken Roman senators, and our military operates as if Hannibal were commanding the armed forces of every third-world country. We even have officials swearing that Putin does not have any nuclear weapons. No really. This is where we are with detente in the 21st century, on the verge of a new Dark Ages.

Journalistic Malpractice on Trial: What the Dominion Voting System Tells Us About How the Media Sacrificed their Credibility to Partisan Falsehoods

By Nolan Higdon

Source: Project Censored

“This is direct evidence of knowing falsity” exclaimed RonNell Anderson Jones, Professor of Law at the University of Utah, in a February 2023 interview with Jon Stewart. Jones noted that in most defamation cases “the likelihood that you will find evidence of them [news outlets] saying, ‘We know this is a lie and we would like to move forward with it anyway is deeply unlikely.’” However, in the case of Dominion Voting Systems v. Fox News, “the filing contains just this trove of evidence of emails and text messages and internal memos that are ‘rare’ both in terms of the ‘volume of the evidence and as to the directness of the evidence.’” This sentiment was echoed by Harvard law professor Laurence Tribe who noted, “I have never seen a defamation case with such overwhelming proof that the defendant admitted in writing that it was making up fake information in order to increase its viewership and its revenues.”

In the $1.6 billion defamation lawsuit, Dominion Voting Systems accuses Fox News Channel of falsely reporting that Dominion’s voting machines fraudulently delivered victory to Joe Biden in the 2020 U.S. Presidential Election. Court documents attained by other media outlets reveal that hosts and other high-ranking Fox News Channel officials – including the Chairman and CEO of Fox’s parent company News Corporation, Rupert Murdoch – knew these reports were false, but aired them because they were more concerned with confirming their audience’s belief that Donald Trump won the election.

The evidence presented in the court documents speaks to the journalistic malpractice that plagues the cable news industry. Journalistic malpractice refers to professional journalists who privilege ideological bias and profits over truth in their reporting. Fox News Channel is patient zero for the plague of journalistic malpractice. It was created in 1996 by Rupert Murdoch and the late Roger Ailes, a media consultant for several Republican presidents, as a political project to sell conservative culture and policy to the American public with pro-conservative propaganda disguised as journalism. For example, Fox News Channel has

  • falsely claimed that other media outlets did not cover the conservative Tea Party rallies;
  • utilized videos out of context to inflate the perceived size of conservative protests;
  • labeled former President Barack Obama a racist;
  • declared Osama bin Laden as a John Kerry supporter;
  • perpetuated discredited reports on the existence of Weapons of Mass Destruction in Iraq;
  • introduced digitally altered photos to fabricate Black Lives Matter violence and make New York Timesreporters appear to be revolting.   

Liberals were right to assert that such chicanery was propaganda, not journalism. But before liberal readers scold Fox News viewers, they should remind themselves that the plague of journalistic malpractice has also infected the liberal leaning cable networks such as CNN and MSNBC. Researchers and scholars have noted that the advent of cable and then the internet saw news media outlets shift from attaining the largest audience possible to focusing on a more specific or narrow demographic of the audience. While Fox News Channel sought to cater to Republican Party voting viewers, CNN and MSNBC did the same for Democratic Party voters. This gave the Democratic Party influence over programming that was tantamount to what the Republican Party long enjoyed at Fox.

When Senator U.S. Bernie Sanders’ 2016 Presidential bid posed a threat to their desired candidate Hillary Clinton in 2016, leaders from the Democratic Party admitted they worked to undermine his campaign. Pro-Democratic party outlets like MSNBC and CNN aided in this effort by

  • creating an unfavorable debate schedule;
  • giving Clinton twice as much and more favorable coverage;
  • publishing 16 negative articles about Sanders in Washington Post (owned by major Democratic Party funder Jeff Bezos) in 16 hours;
  • ghost editing previous news articles to diminish Sanders’ quarter century of accomplishments;
  • inviting his opponent’s surrogates to attack his character under the auspices of being objective journalists.

Their smear of Sanders continued in 2020 when

  • the Democratic Party-leaning news outlets misled the public about Sanders’ polling numbers;
  • CNN’s Abby Phillips drew gasps for ignoring Sanders’ claim that he never said a “woman could not be president;”
  • James Carville on MSNBC made the baseless claim that Russia was supporting Sanders;
  • MSNBC’s Chris Matthews compared Sander’s primary victories to the Nazi’s defeat of the French, an unfortunate comparison as Sanders’ family was murdered in the holocaust.

Journalistic malpractice also plagued Covid-19 coverage. Starting in 2020, CNN’s Chris Cuomo utilized his platform – with the approval of CNN leadership – to host his brother, then New York Governor Andrew Cuomo. The jovial segments seemed like campaign advertisements as Chris treated Andrew as the anti-thesis to then President Trump: a competent executive who took decisive action to address the Covid-19 pandemic. Although, the Democratic versus Republican framing attracted partisan audiences, in reality, Andrew Cuomo and Trump were all too similar: both concealed the actual number of Covid-19 deaths in their jurisdiction, both put patients at risk with kickbacks to industry partners, and both utilized media contacts to stifle press reports about their alleged sexual crimes.

The partisan falsehoods in cable news includes the production of powerful, long- running false stories designed to convince their audiences that the other party is wrong and crazy. For years now, conservatives and Fox News Channel perpetuated the baseless Qanon conspiracy, which alleges that a cabal of Satan-worshiping pedophiles – mainly in the Democratic Party – runs global affairs but Trump will break up the conspiracy. The absurdity of this conspiracy is tantamount to liberal leaning news media’s reporting on Russiagate, which sought to discredit Republicans. Since 2016, Russiagate – the story that Russia meddled in and influenced the outcome of the U.S. election in 2016, had direct connections to Donald Trump and his associates, and worked to help defeat Hillary Clinton for the presidency – was perpetuated by a series of false stories from Democratic Party-friendly media including

  • Russia hacking a Vermont power plant;
  • putting a bounty on U.S. soldiers in Afghanistan;
  • shifting election outcomes around the world;
  • turning Trump into an asset since 1987;
  • labeling the Hunter Biden laptop story as fake news.

Conservatives rightly see this reporting and believe liberals are insane.

Both factions need to look in a mirror. While audiences can clearly see the insanity in other networks’ viewers, they rarely seem to see it in themselves. Indeed, in the same week that CNN and others were having a schadenfreude moment over the Dominion v. Fox case, they hosted a commentator on the train derailment in East Palestine, Ohio without disclosing that he had lobbied for the train company Norfolk Southern. This example of hypocrisy and journalistic malpractice is not only costly to CNN’s credibility, but our democracy as well.   

Without a robust media system that privileges truth over preaching to the choir, the public will have endless debates devoid of facts on key issues such as critical race theory, vaccine efficacy, the origins of the COVID-19 virus, climate change, transgender issues, Ukraine, mysterious balloons, and more. Democratic discourse will be reduced to seeing Republicans as MAGA-hat wearing, blue lives matter-flag waving, gun nuts, and Democrats as medical mask wearing, “this house cares about everything” front-lawn sign adorning, professional victims and virtue signalers. These caricatures have never really been accurate, but as long as the nation is infected with the plague of journalist malpractice they will surely be perpetuated.

While the courts are unlikely to deliver solace from political party propaganda disguised as journalism, they have provided some wisdom. Both Rachel Maddow and Tucker Carlson of MSNBC and Fox News Channel respectively, have been brought to court for spreading false information and were exonerated because the judges concluded that no reasonable person would believe either of them were telling the truth. That is good advice, and viewers would be wise to remember it every time they consider watching cable news.

Arguments Against Despair

By David Edwards

Source: Media Lens

Eliot Jacobson is a retired professor of mathematics and computer science who regularly appears on our Twitter feed discussing the climate crisis. He sends tweets under the grim title, ‘Your “moment of doom” for the day’. These channel the latest news on rapidly rising carbon emissions and temperatures, catastrophic examples of extreme weather, and so on. It’s depressing fare, and Jacobson is candid about the level of anguish he feels:

‘I woke up feeling angry at about 2:30 AM this morning.

‘It’s easy to find something wrong with just about anything I look at. It’s all projection. I’ve been writing and deleting Tweets, but I still feel angry.

‘I’m angry that there’s very little I can do and there’s no way out.’

In a blog post, he wrote:

‘This sadness is so overwhelming, so all-consuming, that it takes my breath away. The things I do to cope with the weight of it all are mere distractions from this sadness. Volunteer for a few hours, then sadness. Go for a walk, then sadness. Listen to music, read, visit websites, then sadness. Visit with friends or family, then sadness. Sadness returns every time I have a moment to reflect on the predicament of the present moment.’

I’m no stranger to this emotional roller-coaster. 1988 was the big year for me, when NASA scientist James Hansen told the world we were heading for disaster. I had no difficulty believing him.

It seemed inconceivable to me that the profit motive driving global industry could be restrained, let alone reversed, in time. I was then working as a marketing manager for British Telecom in the West End of London where I set up a Green Initiatives Group. Small changes were made, but they were just window dressing – deeper changes impacting profit were completely unthinkable. It seemed obvious to me that this fundamentalist corporate resistance must, sooner or later, lead to disaster.

I first protested for action on climate change with Friends of the Earth on the streets of central London in October 1989. I was 27 when I started campaigning; I’m now 61. I’ve thought a lot, worried a lot, talked a lot, read a lot, and written a lot about these issues for three and a half decades, more than half my life.

It seems absolutely incredible to me – by which I mean it seems something that I honestly would not have believed was possible – that what seemed like an urgent crisis to me in the late 1980s can still seem like ‘hype’, a ‘liberal tax scam’, an ‘oligarch plot’ and ‘bourgeois hysteria’ to large numbers of people in 2023. In the 1980s, we said things would change when there were ‘bodies in the streets’ – but the bodies are all around us now, and there is still no sign of meaningful change.

I say all this to make clear that I am in no way complacent about, or indifferent to, the looming climate catastrophe (it seems absurd to even describe it as ‘looming’). My comments below are not intended to detract from the vital need to take immediate action; they are addressed to the despair that I know many people, like Jacobson, are feeling.

You, Me And The Mysterium Tremendum

After everything I have myself suffered, it seems to me that we have two main tasks at the present time: first, to do everything in our power to avert the terrifying crisis threatening us with extinction. Second, to do everything we can to transform the fear and suffering of our predicament into love and bliss.

The first of these is new. The second may sound preposterous, even annoying, but it has actually always been the great human task.

Many activists devoted to action, to change, despise the very idea that our own happiness should be any kind of concern. The suggestion is dismissed as self-indulgent ‘navel gazing’. We have to dispense with all such ‘sentimentality’ and focus on ‘hard politics’. We have to plunge into the darkness of realpolitik and fight for our lives. It’s going to be bruising, to hurt – forget all kitten-cuddling ideas about ‘love’ and feeling good. And how on earth can you feel ‘bliss’ when the world is falling apart? Such nonsense!

As so often, the anger is rooted in fear – the fear that such concerns will divert energy and attention away from what really matters. The counter-argument is that not giving a damn about personal feelings, about our needs as human beings in this short life, is actually one of the key factors that got us into this fine mess in the first place. (See my Cogitation: ‘Our Indifference To Ourselves’ – Beyond The ‘Virtue’ Of Self-Sacrifice – Parts 1 and 2)

Just as I can’t understand how so many people can fail to see the truth of the existential crisis we’re facing, I can’t understand how people can feel so absolutely certain about the significance, the meaning, of this crisis that they fall into absolute despair.

First of all, we need to remember that despair is a function of mind; it is not something mandated by Existence. As Thoreau noted, we have a choice:

‘However mean your life is, meet it and live it; do not shun it and call it hard names.’ (Thoreau, ‘Walden’, Oxford University Press, 1997, p.292)

This has been as true for everyone in human history facing death from illness, starvation, genocide, as it is for all of us now, facing extinction.

I find the universe so mysterious, so fundamentally Unknown, and even Unknowable, that I cannot establish a solid base of existential certainty that allows me to be confidently desperate about even this situation.

Of course, climate collapse is terrible for us – I don’t want to die, you don’t want to die; we don’t want so-called human ‘civilisation’ to disappear. But we all do have to die and the deeper significance of even a disaster on this scale is fundamentally unknown.

We are a miniscule part of billions of years of existence involving 200 billion galaxies each containing 200 billion stars, and who knows how many planets, swirling over distances that completely defy imagination – all of it emerging out of the mysterium tremendum, the how and why of Existence (we can’t say Creation; we don’t even know if it has a beginning or an end).

This immensity of space and time has led to this moment that stands before us. Here we are! Everything in this cosmos has led us here. We can’t just blame politicians, corporate executives and their journalistic enablers – the universe made them as they are and this is what the universe has given us to deal with.

Who are we to break down in despair as if we were certain about the final meaning of what is happening? What do we really know about anything? Do we really know enough to find a solid position from which we can cast judgement even on the extinction of human life, or even of all life, on this planet? 

In November, spiritual writer Steve Taylor posted a poem, ‘Being Watched by The Moon’, on Facebook. Taylor wrote of our cosmic near neighbour:

‘Then I noticed a look of concern on her face.

There was a glint of disapproval, a hint of dismay

in her gaze, as it followed me home

as if she was witnessing an accident, or a crime.

Had I done something wrong? I wondered.

Had I injured or offended someone?

Had I gone astray, and lost the meaning of my life?

But then I looked closer, and realised:

she wasn’t just watching me.

She was watching the whole world.’

A glint of ‘concern’, ‘disapproval’ and ‘dismay’, as if ‘witnessing an accident, or a crime’? Is this really the most likely reaction of the Moon? After all, she has seen a lot – she’s around 4.5 billion years old, about the same age as the Earth. Human beings have been around for just 2.8 million years, and in our problematic modern form for just 200,000 years. The Sun formed about 4.6 billion years ago from an enormous molecular cloud that gave birth to numerous other stars. Our star has about 5 billion years of life left; she’s in her prime. The universe itself is about 13.8 billion years old – at least in this cycle, if it is a cycle. We don’t know where all this comes from, what it means, what lies at the base of it all. 

Worst case scenarios suggest that human-induced climate change might devastate most animal and plant species to such an extent that it could take five million years for life to recover. But 5 million years is a blink of the cosmic eye to old-timers like the Moon, Earth and Sun whose memories stretch back, not millions, but billions of years. And if things don’t work out here post-climate collapse, maybe they’ll go better among the billions and billions of stars out there – that’s a lot of stars, a lot of possibility. From this perspective, one might surmise that human despair at the prospect of human extinction is one more manifestation of an egotism that causes us to vastly overestimate our own importance.

Might it alter our despairing perspective to consider that the enlightened mystics might be right in declaring that, not just plants and animals, but the entire universe is alive? We think life arises miraculously, ‘accidentally’ (what on earth does that mean?), Lazarus-like, from dead matter. But atoms are pretty lively phenomena; they are whizzing flea circuses of jumping sub-atomic particles, quantum waves and other forms of energy. Might we one day conclude that what we call life arises from these subtler forms of life? Is energy in some sense life?

And might our despair be leavened by the possibility, as mystics also insist, that, not just human beings, but the entire cosmos is conscious? What would it mean, if it turns out that even rocks are consciousness in a kind of coma; that evolution is ultimately a process of consciousness awakening from the slumber (not the death) of matter?

If everything is alive and everything is conscious, then even human beings are unable to inflict any real damage – a manifestation of eternal life rises and falls, comes and goes, but the ocean of living consciousness continues completely unharmed.

The universe seems to consist of objects, of material ‘things’. But that is not all: these rocks, animals, planets and stars appear in the something that is no-thing that we call space. Likewise, our awareness also provides an internal space in which sense perceptions, thoughts and emotions can appear and be known. We assume the universe is material and yet awareness seems non-material, seems entirely other than that which is material. Is it possible that external space and the internal space of awareness are related? Could they actually be the same phenomenon? We tend to see our internal space as an epiphenomenon of the brain, but is external space an epiphenomenon of matter?

Could the mystics even be right when they insist that awareness evolves in the universe by moving from ageing bodies to new ones? Westerners find this a childishly obvious example of wishful thinking. But does that make it untrue? Do we imagine that Buddha, Bodhidharma, Nagarjuna, Lao tse and all other enlightened humans were inventing when they made this claim over and over again? Could they even be right in arguing that consciousness moves from old, exhausted planets to fresh, new planets better suited to the continued evolution of consciousness?

If that sounds ludicrous, is it any crazier than the idea that the universe suddenly emerged from nothingness – nothing, nothing, nothing, then, Bang! – or that it has somehow always existed? These appear to be the only two possibilities, and yet both seem totally nonsensical to us. If the only logical possibilities seem impossible, how can we so confidently root our despair in our clearly inadequate human capacity for logic?

Satchitananda

I controversially suggested our task was to find bliss in the face of looming extinction. Is that possible? Is it moral even to try in the face of so much suffering?

Seasoned meditators tell us that the mysterious awareness perceiving these words is inherently blissful. Not just pleasurable, mind you – ecstatic. We are told the bliss is already there, is always there; that it is the very nature of awareness. The idea is captured in the Sanskrit epithet ‘satchitananda’, or ‘reality, consciousness, bliss’ – existence is aware and awareness is blissful.

This sounds counter-intuitive standing at a bus stop on a rainy Monday morning commute to work. We are here, we are aware, thank you very much, and we are emphatically not beaming with delight.

There are two possible explanations for this contradiction: either all the enlightened mystics were talking nonsense, or we are not in fact here, not in fact aware, and are therefore not able to experience the bliss that is here.

But if we’re not here, where on earth are we?

We are physically here, of course, but our minds are not in the present; they are in the past and in the future. Because the past and future do not exist, because they are mere ideas in the mind, when we are thinking we are absent; we are not truly here.

There are times when I sit in meditation for an hour when thoughts finally drop away; thoughts by which I am otherwise unceasingly plagued by day and night (dreams are thinking in pictures). When thoughts drop away, even for a moment, something very subtle, but very powerful slips through. In my experience, it emerges like a wispy strand of pink candy floss spinning out from some completely unknown depth and melting into my heart (my ‘dantian’ and ‘lower dantian’, in the terminology of Qigong). The melting is experienced as a sweetness, a delight, that glows with unconditional love for everyone and everything.

It is clear, sitting alone in a room, that this loving bliss is uncaused. I may have been as miserable as sin about the state of the world before slumping down to watch my thoughts and feelings – nothing in my world has objectively changed in that hour. In fact, as all the mystics insist, this loving delight has not been caused; it has simply been unveiled, revealed.

Thought is the veil. This is why we can’t feel the bliss of existence: it is hidden from us by layer upon layer of thought, rather like the multiple layers of cloud that typically greet solemn holidaymakers returning to Britain.

Human beings are the only animal that can become lost in the unreal world of mentation. All the virtuous, politically correct and well-intentioned thought by which we have always hoped to make the world a better place – the whole, misguided 17th and 18th century dream of the European ‘Enlightenment’ – has combined with all other thoughts to form an almost impenetrable barrier between us and the real source of civilisation, of personal and global salvation, within us.

The truth is that we have destroyed our planet and become almost completely estranged from the inherent bliss of being because we have sought civilisation and happiness in our heads. In reality, true civilisation – not the ability to build machines to pyrrhically ‘conquer’ nature, other animals and humans – is found when we transcend thought and connect deeply and often with our hearts.

‘The Best People In The World’ – Actual Human Civilisation

The very idea of technological ‘progress’ implies some kind of ‘Manifest Destiny’. It is our ‘destiny’ – the natural path of any ‘advanced’ civilisation on any planet – to develop ever more powerful technology, that we might one day voyage across the cosmic ocean just as we once voyaged across the water and air of our home planet.

But this may be wrong. It may be that the right option is to journey inwards in an exploration of being, of consciousness, to an unimagined brave new world of love and bliss.

Perhaps we don’t hear anything from highly technological ‘civilisations’ out there in the cosmos because the whole effort is a suicidal wrong turn that leads to near-instant decline and extinction. The cosmos may nevertheless be teeming with genuinely civilised beings who have gone in a very different direction.

After all, even on our planet, there have been examples of authentically civilised humans – people who live in their hearts rather than in their heads, who are free of our obsessive thinking. They appear to have rooted their daily lives in the kind of love and bliss that we in the West can only find in meditation.

In his book, ‘The Conquest of Paradise’, writer and ecologist Kirkpatrick Sale described the low-tech, Taino society encountered by the Spanish conquistadors in 1492:

‘So little a part did violence play in their system that they seem, remarkably, to have been a society without war (at least we know of no war music or signals or artifacts, and no evidence of intertribal combats) and even without overt conflict (Las Casas reports that no Spaniard ever saw two Tainos fighting).’ (Kirkpatrick Sale, ‘The Conquest of Paradise’, Papermac, 1992, p.99)

But the lack of violence was only one aspect of the Tainos’ towering civilisation:

‘And here we come to what was obviously the Tainos’ outstanding cultural achievement, a proficiency in the social arts that led those who first met them to comment unfailingly on their friendliness, their warmth, their openness, and above all – so striking to those of an acquisitive culture – their generosity.’ (p.99)

Even Admiral Cristobal Colon (‘Christopher Columbus’ in old money), the man who brought death and disaster to the lives of the Taino, recorded in his journal:

‘They are the best people in the world and above all the gentlest. They became so much our friends that it was a marvel… They traded and gave everything they had, with good will.’ (pp.99-100)

He continued:

‘I sent the ship’s boat ashore for water, and they very willingly showed my people where the water was, and they themselves carried the full barrels to the boat, and took great delight in pleasing us. They are very gentle and without knowledge of what is evil; nor do they murder or steal.’

Colon added:

‘They love their neighbours as themselves, and they have the sweetest talk in the world, and are gentle and always laughing.’ (p.100)

Sale wrote poignantly:

‘It is to be regretted that the Admiral, unable to see past their nakedness, as it were, knew not the real virtues of the people he confronted. For the Tainos’ lives were in many ways as idyllic as their surroundings, into which they fit with such skill and comfort. They were well fed and well housed, without poverty or serious disease. They enjoyed considerable leisure, given over to dancing, singing, ballgames, and sex, and expressed themselves artistically in basketry, woodworking, pottery, and jewellery. They lived in general harmony and peace, without greed or covetousness or theft.’ (pp.100-101)

American geographical scholar Carl Sauer concluded:

‘…the tropical idyll of the accounts of Columbus… was largely true’. (p.101)

The Tainos were human beings who lived in their hearts, not in their heads. They had no august universities packed with thinkers, philosophers and other half-crazed intellectuals; no 24/7 outpourings of media pollution – they lived in the bliss of awareness unclouded by obsessive thought.

As for us! By painful contrast, in his book, ‘Impact of Western Man’, historian William Woodruff commented on the society from which Colon had sailed:

‘No civilization prior to the European had occasion to believe in the systematic material progress of the whole human race; no civilization placed such stress upon the quantity rather than the quality of life; no civilization drove itself so relentlessly to an ever-receding goal; no civilization was so passion-charged to replace what is with what could be; no civilization had striven as the West has done to direct the world according to its will; no civilization has known so few moments of peace and tranquillity.’ (Sale, ibid, p.91, my emphasis)

To live in the head, to sacrifice the moment for the future, to prioritise the ‘serious’, ‘important’ work of the greedy, plotting mind over the bliss of the heart is to build a self-destructive, doomed version of fake ‘civilisation’.

Or consider the experience of the Mexican anthropologist Miguel Covarrubias on visiting the island of Bali in 1938. Covarrubias wrote:

‘No other race gives the impression of living in such close touch with nature, creates such a complete feeling of harmony between the people and the surroundings… The Balinese belong in their environment in the same way that a humming-bird or an orchid belongs in a Central American jungle.’ (Miguel Covarrubias, ‘Island of Bali’, KPI, 1986, p.11)

Covarrubias added:

‘A man is assisted by his neighbours in every task he cannot perform alone; they help him willingly and as a matter of duty, not expecting any reward other than the knowledge that, were they in his case, he would help in the same manner’. (p.14)

The result, Covarrubias wrote, was a village system which operated as ‘a closely unified organism in which the communal policy is harmony and cooperation – a system that works to everybody’s advantage’. (p.15)

In the late 1990s, I worked with the Swedish ecologist and activist Helena Norberg-Hodge who lived for many years among the people of Ladakh on the Tibetan plateau of Northern India. In her book ‘Ancient Futures’, Norberg-Hodge wrote of how she was bewildered by the strange fact that the Ladakhis were always smiling:

‘At first I couldn’t believe that the Ladakhis could be as happy as they appeared. It took me a long time to accept that the smiles I saw were real. Then, in my second year there, while at a wedding, I sat back and observed the guests enjoying themselves. Suddenly I heard myself saying, “Aha, they really are that happy”. Only then did I recognize that I had been walking around with cultural blinders on, convinced that the Ladakhis could not be as happy as they seemed. Hidden behind the jokes and laughter had to be the same frustration, jealousy, and inadequacy as in my own society. In fact, without knowing it, I had been assuming that there were no significant cultural differences in the human potential for happiness. It was a surprise for me to realize that I had been making such unconscious assumptions, and as a result I think I became more open to experiencing what was really there.’ (Helena Norberg-Hodge, ‘Ancient Futures – Learning From Ladakh,’ Sierra, 1992, p.84)

As amongst the Tainos, fighting in traditional Ladakhi society was unknown, disputes were settled quickly and peaceably, and when one person had a problem the entire community did its best to help:

‘In traditional Ladakh, aggression of any sort is exceptionally rare: rare enough to say that it is virtually non-existent… Even arguments are rare. I have hardly ever seen anything more than mild disagreement in the traditional villages—certainly nothing compared with what you find in the West.’ (p.46)

Norberg-Hodge concluded:

‘I have never met people who seem so healthy emotionally, so secure, as the Ladakhis.’ (p.85)

These societies that seem so ‘primitive’ and ‘uncivilised’ to goal-oriented, power-obsessed, head-trapped Europeans, were actually exemplars of authentic human civilisation.

I am not suggesting that we can become like the Tainos, Balinese and Ladakhis. If we are too high-tech primitive to save ourselves from climate disaster, we can obviously not hope to create that kind of paradise on earth.

What I am suggesting, though, is that the existence of these societies powerfully supports the contention of the mystics: that awareness unclouded by obsessive thinking is indeed in the nature of bliss and love. I am suggesting that such low-tech civilisations may exist in abundance, undetected, on other planets that will of course continue to thrive no matter what happens on our planet. I am also suggesting that you and I can create a little patch of this paradise in our own hearts.

Perhaps in our world as it is, genuinely civilised, loving societies are doomed to be destroyed by brutal, head-trapped, Western-style societies. But you and I still have the freedom, even in the face of this wider brutality, even in the face of environmental catastrophe, to live a life overflowing with love and bliss. Maybe that is all that is possible for us, and maybe that is enough. 

Send in the Clowns

Yellen and Garland perform back-to-back surprise visits to Ukraine

By Philip Giraldi

Source: The Unz Review

Sometimes I think that the script being used by the Biden Administration to manage its foreign and national security policies has been written by George Orwell, though I am not sure if it based on 1984 or Animal Farm. Maybe it is a combination of the two. Either way, it would help explain why there is something seriously wrong here. For example, at the end of February Congress, confronted by a debt ceiling, began discussing cutting Medicare and Social Security while more recently a banking sector crisis seems to be developing so Treasury Secretary Janet Yellen decided to go off doing photo-ops in Kiev embracing Ukraine’s President Volodymyr Zelensky shortly after handing him the keys to the US economy. She explained to Zelensky how the White House had approved an additional $12 billion in aid to Ukraine during the previous week, including $2 billion for the military and $10 billion to support Zelensky’s government and other infrastructure needs. The US Treasury is now de facto the source of the Ukraine government’s entire annual budget. In addition, Yellen described glowingly how the Treasury and State Departments will implement a new round of sanctions against more than 200 entities and individuals with ties to Russia’s military, high-technology industries, and its metals and mining sectors. The US Department of Commerce is also enforcing export restrictions on materials and technology, including semiconductors, sold by American companies to customers in Russia and China.

In defense of her grand mission, Yellen penned an op-ed for the always compliant New York Times explaining the importance of Ukraine to the United States. She wrote how in Ukraine “…Russia’s barbaric attacks continue — but Kyiv stands strong and free. Ukraine’s heroic resistance is the direct product of the courage and resilience of Ukraine’s military, leadership and people. But President Volodymyr Zelensky and the Ukrainians would be the first to admit that they can’t do this alone — and that international support is crucial to sustaining their resistance. I’m in Kyiv to reaffirm our unwavering support of the Ukrainian people. Mr. Putin is counting on our global coalition’s resolve to wane, which he thinks will give him the upper hand in the war. But he is wrong. As President Biden said here last week, America will stand with Ukraine for as long as it takes… Ukrainians are fighting for their lives on the front lines of the free world. Today, and every day, they deserve America’s unyielding support.”

The Yellen op-ed drones on with a lie so large that it is astonishing that the New York Times would even print it: “When confronted with scenes of brutality and oppression, Americans have always been quick to stand up and do the right thing. Our strength as a nation comes from our commitment to our ideals — and our capacity to see in others the same desires that animated our own struggles for freedom and justice.” But then she tops that with assurances from “President Zelensky, [who] has pledged to use these funds in the ‘most responsible way.’ We welcome this commitment, as well as his longstanding agenda to strengthen good governance in Ukraine.” Huh?

And here is Yellen’s version of “Why We Fight!”: “Our support is motivated, first and foremost, by a moral duty to come to the aid of a people under attack. We also know that, as President Zelensky has said, our assistance is not charity. It’s an investment in ‘global security and democracy.’ Let’s look at the strategic impact of our support for Ukraine so far. Mr. Putin’s war poses a direct threat to European security, as well as to the laws and values that underpin the rules-based international system.”

So, Americans have a “moral duty” apparently up to and including sending their sons and daughters to die supporting Ukraine. And ah yes, it’s all about the “free” world, democracy and the notorious rules based international system! Has anyone yet cited Hegel’s observation that the President Joe Biden Administration’s foreign policy has already “repeated itself, first as a tragedy in Afghanistan, second as a farce”? Meanwhile one suspects Zelensky was laughing all the way to the bank as Yellen disappeared over the horizon to come up with the cash, as that old expression goes, and he probably already has one of his buddies shopping for a new villa on the French Riviera to supplement his other real estate! But wait! The story became even more exciting the following week, involving another visit to Mr. Z by America’s nearly invisible Attorney General Merrick Garland, a man who can literally look Z in the eye as they are both very short. Garland is generally engaged in chasing white supremacists and requiring all new FBI hires to learn all about how to identify and pursue antisemites, but he has made two trips to Kiev to meet mano-a-mano with the brave olive drab t-shirt clad warrior who is already being beatified as the twenty-first century’s Winston Churchill.

Garland was in town to do the other thing the engages his sense of law and order, which is to set up a tribunal to arrest, prosecute and punish Russian war criminals after Ukraine emerges triumphant from its conflict with the unimaginably evil President Vladimir Putin. It would be modeled on the Nuremberg Tribunals that tried leading Nazis after the Second World War, and Garland has cited his family’s escape from the so-called holocaust to explain why he is intent on personally being involved in delivering what he describes as “justice.” A Justice Department spokeswoman described Garland’s mission as being in Kiev to personally “reaffirm America’s commitment to help hold Russia responsible for war crimes committed in its unjust and unprovoked invasion against its sovereign neighbor.”

Garland had several meetings with President Volodymyr Zelensky and foreign law enforcement officials including Ukrainian Prosecutor General Andriy Kostin while attending what was billed as the “United for Justice Conference.” Zelensky elaborated that the purpose of the conference was to hold Russia’s leadership accountable for the alleged atrocities carried out by its army. “The main issue of all these meetings is accountability,” he said. The US Justice Department is reportedly actively engaged in the gathering of evidence to indict the Russians. During Garland’s first visit to Ukraine in June 2022 he announced the appointment of Eli Rosenbaum, an Office of Special Investigations prosecutor best known for going after former Nazis, to direct American efforts to identify and track Russian war criminals.

Garland laid it on thick, as was expected from someone responsible for prosecuting the rest of the world when it steps out of line. He told his hosts that “Just over twelve months ago, invading Russian forces began committing atrocities at the largest scale in any armed conflict since the Second World War. We are here today in Ukraine to speak clearly, and with one voice: the perpetrators of those crimes will not get away with them. In addition to our work in partnership with Ukraine and the international community, the United States has also opened criminal investigations into war crimes in Ukraine that may violate US law.” He concluded by throwing out the complete bullshit party line much beloved by Joe Biden and Tony Blinken, that “The United States recognizes that what happens here in Ukraine will have a direct impact on the strength of our own democracy.”

Of course, there is more than a little bit of irony in all this, not to mention top level hypocrisy, as the United States has killed more people directly or indirectly while committing more crimes against humanity dished out in various ways over the past twenty years than any other country, except, predictably, Israel, which currently is committing crimes against humanity on a nearly daily basis. Curiously, however, the normally tone-deaf White House and Pentagon seem to understand, on a certain level, that opening up Pandora’s box might not be a good idea when it comes to war crimes. Last week Secretary of Defense Lloyd Austin refused to share US information on alleged Russian crimes with the International Criminal Court (ICC) in the Hague. The Pentagon is blocking the Biden administration from sharing evidence with the ICC collected by American intelligence agencies regarding Russian activities in Ukraine because helping the court investigate Russians might set a precedent that could help pave the way for it to prosecute Americans. Washington does not recognize the ICC, fearing that it might well seek to examine the sorry record of US military crimes in Asia and Africa. Israel similarly does to recognize the court for roughly the same reason.

So here we are, two top level officials from the Biden regime sneak into Kiev to give an arch crook money and unlimited moral support, together with a pledge that more cash is on the way as are arms and war crimes tribunals await those nasty Russians. And guess what? It is all packaged as being good for America! This sounds like a song that was sung previously in places like Vietnam, Iraq and Afghanistan and it was a tissue of lies then just as it is now. Yellen ought to have stayed home to tend to the banking system and should be giving the billions of dollars earmarked for Zelensky back to the American people. If Garland wants to investigate anyone it should be the Pentagon, the intelligence agencies, and Congress. And yes, his own FBI! And don’t forget how the Bidens and Clintons became multi-millionaires! And then there is the destruction of Nord Stream. Funny how every time one turns over a rock in and around the US government something really smelly surfaces.

Silicon Valley Bank Crisis: The Liquidity Crunch We Predicted Has Now Begun

A worker, middle, tells customers that the Silicon Valley Bank headquarters is closed on Friday, March 10, 2023, in Santa Clara, California. Silicon Valley Bank was shut down on Friday morning by California regulators and was put in control of the U.S. Federal Deposit Insurance Corporation. (Justin Sullivan/Getty Images/TNS)

By Brandon Smith

Source: Alt-Market.us

There has been an avalanche of information and numerous theories circulating the past few days about the fate of a bank in California know as SVB (Silicon Valley Bank). SVB was the 16th largest bank in the US until it abruptly failed and went into insolvency on March 10th. The impetus for the collapse of the bank is tied to a $2 billion liquidity loss on bond sales which caused the institution’s stock value to plummet over 60%, triggering a bank run by customers fearful of losing some or most of their deposits.

There are many fine articles out there covering the details of the SVB situation, but what I want to talk about more is the root of it all. The bank’s shortfalls are not really the cause of the crisis, they are a symptom of a wider liquidity drought that I predicted here at Alt-Market months ago, including the timing of the event.

First, though, let’s discuss the core issue, which is fiscal tightening and the Federal Reserve. In my article ‘The Fed’s Catch-22 Taper Is A Weapon, Not A Policy Error’, published in December of 2021, I noted that the Fed was on a clear path towards tightening into economic weakness, very similar to what they did in the early 1980s during the stagflation era and also somewhat similar to what they did at the onset of the Great Depression. Former Fed Chairman Ben Bernanke even openly admitted that the Fed caused the depression to spiral out of control due to their tightening policies.

In that same article I discussed the “yield curve” being a red flag for an incoming crisis:

…The central bank is the largest investor in US bonds. If the Fed raises interest rates into weakness and tapers asset purchases, then we may see a repeat of 2018 when the yield curve started to flatten. This means that short term treasury bonds will end up with the same yield as long term bonds and investment in long term bonds will fall.”

As of this past week the yield curve has been inverted, signaling a potential liquidity crunch. Both Jerome Powell (Fed Charman) and Janet Yellen (Treasury Secretary) have indicated that tightening policies will continue and that reducing inflation to 2% is the goal. Given the many trillions of dollars the Fed has pumped into the financial system in the past decade as well as the overall weakness of general economy, it would not take much QT to crush credit markets and by extension stock markets.

As I also noted in 2021:

We are now at that stage again where price inflation tied to money printing is clashing with the stock market’s complete reliance on stimulus to stay afloat. There are some that continue to claim the Fed will never sacrifice the markets by tapering. I say the Fed does not actually care, it is only waiting for the right time to pull the plug on the US economy.”

But is that time now?  I expanded on this analysis in my article ‘Major Economic Contraction Coming In 2023 – Followed By Even More Inflation’, published in December of 2022. I noted that:

This is the situation we are currently in today as 2022 comes to a close. The Fed is in the midst of a rather aggressive rate hike program in a “fight” against the stagflationary crisis that they created through years of fiat stimulus measures. The problem is that the higher interest rates are not bringing prices down, nor are they really slowing stock market speculation. Easy money has been too entrenched for far too long, which means a hard landing is the most likely scenario.”

I continued:

In the early 2000s the Fed had been engaged in artificially low interest rates which inflated the housing and derivatives bubble. In 2004, they shifted into a tightening process. Rates in 2004 were at 1% and by 2006 they rose to over 5%. This is when cracks began to appear in the credit structure, with 4.5% – 5.5% being the magic cutoff point before debt became too expensive for the system to continue the charade. By 2007/2008 the nation witnessed an exponential implosion of credit…”

Finally, I made my prediction for March/April of 2023:

Since nothing was actually fixed by the Fed back then, I will continue to use the 5% funds rate as a marker for when we will see another major contraction…The 1% excise tax added on top of a 5% Fed funds rate creates a 6% millstone on any money borrowed to finance future buybacks. This cost is going to be far too high and buybacks will falter. Meaning, stock markets will also stop, and drop. It will likely take two or three months before the tax and the rate hikes create a visible effect on markets. This would put our time frame for contraction around March or April of 2023.”

We are now in the middle of March and it appears that the first signs of liquidity crisis are bubbling to the surface with the insolvency of SVB and the shuttering of another institution in New York called Signature Bank.

Everything is tied back to liquidity. With higher rates, banks are hard-pressed to borrow from the Fed and companies are hard-pressed to borrow from banks. This means companies that were hiding financial weakness and exposure to bad investments using easy credit no longer have that option. They won’t be able to artificially support operations that are not profitable, they will have to abandon stock buybacks that make their shares appear valuable and they will have to initiate mass layoffs in order to protect their bottom line.

SVB is not quite Bear Stearns, but it is likely a canary in the coal mine, telling us what is about to happen on a wider scale. Many of their depositors were founded in venture capital fueled by easy credit, not to mention all the ESG related companies dependent on woke loans. That money is gone – It’s dead. Those businesses are quietly but quickly crumbling which also conjured a black hole for deposits within SVB. It’s a terribly destructive cycle. Surely, there are numerous other banks in the US in the same exact position.

I believe this is just the beginning of a liquidity and credit crisis that will combine with overt inflation to produce perhaps the biggest economic crash America has ever seen. SVB’s failure may not be THE initiator, only one among many. I suspect that in this scenario larger US banks may avoid the kind of credit crash that we saw with Bear Stearns and Lehman Brothers in 2008. But, contagion could still strike multiple mid-sized banks and the effects could be similar in a short period of time.

With all the news flooding the wire on SVB it’s easy to forget that all of this boils down to a single vital issue: The Fed’s stimulus measures created an economy utterly addicted to easy and cheap liquidity. Now, they have taken that easy money away. In light of the SVB crash, will the central bank reverse course on tightening, or will they continue forward and risk contagion?

For now, Janet Yellen and the Fed have implemented a limited backstop and a guarantee on deposits at SVB and Signature. This will theoretically prevent a “haircut” on depositor accounts and lure retail investors with dreams of endless stimulus.  It is a half-measure, though – Central bankers have to at least look like they are trying. 

SVB’s assets sit at around $200 billion and Signature’s assets are around $100 billion, but what about interbank exposure and what about the wider implications?  How many banks are barely scraping by to meet their liquidity obligations, and how many companies have evaporating deposits?  The backstop will do nothing to prevent a major contagion.

There are many financial tricks that might slow the pace of a credit crash, but not by much.  And, here’s the kicker – Unlike in 2008, the Fed has created a situation in which there is no escape. If they do pivot and return to systemic bailouts, stagflation will skyrocket even more. If they don’t use QE, then banks crash, companies crash and even bonds become untenable, which puts the world reserve status of the Dollar under threat. What does that lead to? More stagflation. In either case, rapidly rising prices on most necessities will be the consequence.

How long will this process take? It all depends on how the Fed responds. They might be able to drag the crash out for a few months with various stop-gaps. If they go back to stimulus then the banks will be saved along with equities (for a while) but rising inflation will suffocate consumers in the span of a year and companies will still falter. My gut tells me that they will rely on contained interventions but will not reverse rate hikes as many analysts seem to expect.

The Fed will goose markets up at times using jawboning and false hopes of a return to aggressive QE or near-zero rates, but ultimately the trend of credit markets and stocks will be steady and downward.  Like a brush fire in a wind storm, once the flames are sparked there is no way to put things back the way they were.  If their goal was in fact a liquidity crunch, well, mission accomplished.  They have created that exact scenario.  Read my articles linked above to understand why they might do this deliberately.

In the meantime, it appears that my predictions on timing are correct so far. We will have to wait and see what happens in the coming weeks. I will keep readers apprised of events as new details unfold.  The situation is rapidly evolving.

The Lords of Chaos

The politicians and shills in the media who orchestrated 20 years of military debacles in the Middle East, and who seek a world dominated by U.S. power, must be held accountable for their crimes.

We’re Number One – by Mr. Fish

By Chris Hedges

Source: The Chris Hedges Report

Two decades ago, I sabotaged my career at The New York Times. It was a conscious choice. I had spent seven years in the Middle East, four of them as the Middle East Bureau Chief. I was an Arabic speaker. I believed, like nearly all Arabists, including most of those in the State Department and the CIA, that a “preemptive” war against Iraq would be the most costly strategic blunder in American history. It would also constitute what the International Military Tribunal at Nuremberg called the “supreme international crime.” While Arabists in official circles were muzzled, I was not. I was invited by them to speak at The State Department, The United States Military Academy at West Point and to senior Marine Corps officers scheduled to be deployed to Kuwait to prepare for the invasion.

Mine was not a popular view nor one a reporter, rather than an opinion columnist, was permitted to express publicly according to the rules laid down by the newspaper. But I had experience that gave me credibility and a platform. I had reported extensively from Iraq. I had covered numerous armed conflicts, including the first Gulf War and the Shi’ite uprising in southern Iraq where I was taken prisoner by The Iraqi Republican Guard. I easily dismantled the lunacy and lies used to promote the war, especially as I had reported on the destruction of Iraq’s chemical weapons stockpiles and facilities by the United Nations Special Commission (UNSCOM) inspection teams. I had detailed knowledge of how degraded the Iraqi military had become under U.S. sanctions. Besides, even if Iraq did possess “weapons of mass destruction” that would not have been a legal justification for war.

The death threats towards me exploded when my stance became public in numerous interviews and talks I gave across the country. They were either mailed in by anonymous writers or expressed by irate callers who would daily fill up the message bank on my phone with rage-filled tirades. Right-wing talk shows, including Fox News, pilloried me, especially after I was heckled and booed off a commencement stage at Rockford College for denouncing the war. The Wall Street Journal wrote an editorial attacking me. Bomb threats were called into venues where I was scheduled to speak. I became a pariah in the newsroom. Reporters and editors I had known for years would lower their heads as I passed, fearful of any career-killing contagion. I was issued a written reprimand by The New York Times to cease speaking publicly against the war. I refused. My tenure was over.

What is disturbing is not the cost to me personally. I was aware of the potential consequences. What is disturbing is that the architects of these debacles have never been held accountable and remain ensconced in power. They continue to promote permanent war, including the ongoing proxy war in Ukraine against Russia, as well as a future war against China

The politicians who lied to us — George W. BushDick CheneyCondoleezza RiceHillary Clinton and Joe Biden to name but a few — extinguished millions of lives, including thousands of American lives, and left Iraq along with Afghanistan, Syria, Somalia, Libya and Yemen in chaos. They exaggerated or fabricated conclusions from intelligence reports to mislead the public. The big lie is taken from the playbook of totalitarian regimes. 

The cheerleaders in the media for war — Thomas FriedmanDavid RemnickRichard CohenGeorge PackerWilliam KristolPeter BeinartBill KellerRobert KaplanAnne ApplebaumNicholas KristofJonathan ChaitFareed ZakariaDavid FrumJeffrey GoldbergDavid Brooks and Michael Ignatieff — were used to amplify the lies and discredit the handful of us, including Michael MooreRobert Scheer and Phil Donahue, who opposed the war. These courtiers were often motivated more by careerism than idealism. They did not lose their megaphones or lucrative speaking fees and book contracts once the lies were exposed, as if their crazed diatribes did not matter. They served the centers of power and were rewarded for it.

Many of these same pundits are pushing further escalation of the war in Ukraine, although most know as little about Ukraine or NATO’s provocative and unnecessary expansion to the borders of Russia as they did about Iraq. 

“I told myself and others that Ukraine is the most important story of our time, that everything we should care about is on the line there,” George Packer writes in The Atlantic magazine. “I believed it then, and I believe it now, but all of this talk put a nice gloss on the simple, unjustifiable desire to be there and see.”

Packer views war as a purgative, a force that will jolt a country, including the U.S., back to the core moral values he supposedly found amongst American volunteers in Ukraine.

“I didn’t know what these men thought of American politics, and I didn’t want to know,” he writes of two U.S. volunteers. “Back home we might have argued; we might have detested each other. Here, we were joined by a common belief in what the Ukrainians were trying to do and admiration for how they were doing it. Here, all the complex infighting and chronic disappointments and sheer lethargy of any democratic society, but especially ours, dissolved, and the essential things — to be free and live with dignity — became clear. It almost seemed as if the U.S. would have to be attacked or undergo some other catastrophe for Americans to remember what Ukrainians have known from the start.”

The Iraq war cost at least $3 trillion and the 20 years of warfare in the Middle East cost a total of some $8 trillion. The occupation created Shi’ite and Sunni death squads, fueled horrific sectarian violence, gangs of kidnappers, mass killings and torture. It gave rise to al-Qaeda cells and spawned ISIS which at one point controlled a third of Iraq and Syria. ISIS carried out rape, enslavement and mass executions of Iraqi ethnic and religious minorities such as the Yazidis. It persecuted Chaldean Catholics and other Christians. This mayhem was accompanied by an orgy of killing by U.S. occupation forces, such as as the gang rape and murder of Abeer al-Janabi, a 14-year-old girl and her family by members of the U.S. Army’s 101st Airborne. The U.S. routinely engaged in the torture and execution of detained civilians, including at Abu Ghraib and Camp Bucca

There is no accurate count of lives lost, estimates in Iraq alone range from hundreds of thousands to over a million. Some 7,000 U.S. service members died in our post 9/11 wars, with over 30,000 later committing suicide, according to Brown University’s Costs of War project. 

Yes, Saddam Hussein was brutal and murderous, but in terms of a body count, we far outstripped his killings, including his genocidal campaigns against the Kurds. We destroyed Iraq as a unified country, devastated its modern infrastructure, wiped out its thriving and educated middle class, gave birth to rogue militias and installed a kleptocracy that uses the country’s oil revenues to enrich itself. Ordinary Iraqis are impoverished. Hundreds of Iraqis protesting in the streets against the kleptocracy have been gunned down by police. There are frequent power outages. The Shi’ite majority, closely allied with Iran, dominates the country. 

The occupation of Iraq, beginning 20 years ago today, turned the Muslim world and the Global South against us. The enduring images we left behind from two decades of war include President Bush standing under a “Mission Accomplished” banner onboard the USS Abraham Lincoln aircraft carrier barely one month after he invaded Iraq, the bodies of Iraqis in Fallujah that were burned with white phosphorus and the photos of torture by U.S. soldiers. 

The U.S. is desperately attempting to use Ukraine to repair its image. But the rank hypocrisy of calling for “a rules-based international order” to justify the $113 billion in arms and other aid that the U.S. has committed to send to Ukraine, won’t work. It ignores what we did. We might forget, but the victims do not. The only redemptive path is charging Bush, Cheney and the other architects of the wars in the Middle East, including Joe Biden, as war criminals in the International Criminal Court. Haul Russian President Vladimir Putin off to The Hague, but only if Bush is in the cell next to him. 

Many of the apologists for the war in Iraq seek to justify their support by arguing that “mistakes” were made, that if, for example, the Iraqi civil service and army were not disbanded after the U.S. invaded, the occupation would have worked. They insist that our intentions were honorable. They ignore the hubris and lies that led to the war, the misguided belief that the U.S. could be the sole major power in a unipolar world. They ignore the massive military expenditures spent annually to achieve this fantasy. They ignore that the war in Iraq was only an episode in this demented quest. 

A national reckoning with the military fiascos in the Middle East would expose the self-delusion of the ruling class. But this reckoning is not taking place. We are trying to wish the nightmares we perpetuated in the Middle East away, burying them in a collective amnesia. “World War III Begins With Forgetting,” warns Stephen Wertheim.

The celebration of our national “virtue” by pumping weapons into Ukraine, by sustaining at least 750 military bases in more than 70 countries and by expanding our naval presence in the South China Sea, is meant to fuel this dream of global dominance.

What the mandarins in Washington fail to grasp is that most of the globe does not believe the lie of American benevolence or support its justifications for U.S. interventions. China and Russia, rather than passively accepting U.S. hegemony, are building up their militaries and strategic alliances. China, last week, brokered an agreement between Iran and Saudi Arabia to re-establish relations after seven years of hostility, something once expected of U.S. diplomats. The rising influence of China creates a self-fulfilling prophecy for those who call for war with Russia and China, one that will have consequences far more catastrophic than those in the Middle East.

There is a national weariness with permanent war, especially with inflation ravaging family incomes and 57 percent of Americans unable to afford a $1,000 emergency expense. The Democratic Party and the establishment wing of the Republican Party, who peddled the lies about Iraq, are war parties. Donald Trump’s call to end the war in Ukraine, like his lambasting of the war in Iraq as the “worst decision” in American history, are attractive political stances to Americans struggling to stay afloat. The working poor, even those whose options for education and employment are limited, are no longer as inclined to fill the ranks. They have far more pressing concerns than a unipolar world or war with Russia or China. The isolationism of the far right is a potent political weapon.

The pimps of war, leaping from fiasco to fiasco, cling to the chimera of U.S. global supremacy. The dance macabre will not stop until we publicly hold them accountable for their crimes, ask those we have wronged for forgiveness and give up our lust for uncontested global power. The day of reckoning, vital if we are to protect what is left of our anemic democracy and curb the appetites of the war machine, will only come when we build mass anti-war organizations that demand an end to the imperial folly threatening to extinguish life on the planet.