Category Archives: Economics

Our Real National Security Budget

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$2 Trillion, Here We Come.

Signe’s second toon du jour SIGN17e Military

By Andrew Cockburn

Source: Spoils of War

The Biden Administration has just published its proposed budget, generating copious commentary, much of it displaying a commensurate degree of misunderstanding, especially regarding our gargantuan national security spending. To get at the truth of the matter, I consulted my friend Winslow Wheeler, who has been observing the insalubrious intricacies of the budget process over the past fifty years as a senior aide to Senators from both parties as well as a senior analyst for the General Accounting Office and directing the Center for Defense Information.

The defense budget has just been posted by the administration is being described as approaching a trillion dollars. Is that accurate?  :

No. It’s actually a lot more than that. In fact it’s beginning to inch up on $2 trillion. 

How so?

The problem is that when most people look at the defense budget, they don’t count everything that we spend even for the Pentagon. But in addition to that, there are hundreds of billions of dollars outside of the Pentagon’s budget that we spend for national security. Things like the nuclear weapons activities in the Department of Energy; that’s $37 billion; $26 billion for retired military pensions and healthcare and $12 billion for the Selective Service, the National Defense Stockpile, and a strange and suspicious looking category for the international activities of the FBI in something called “Defense Related Activities.”

Do we have any idea what that last one is for?

It has always been classified. In the 50 years I’ve been watching the defense budget, it’s never been explained other than some occasional hints. One year they admitted to a lot of money being spent by the FBI in, wait for it, Taiwan, and so it’s very unclear exactly what this is, but it’s always counted as part of so-called defense related activities.  

The expenses that I have just been describing come to $970 billion, but that leaves out a lot.. Add in about $800 billion for the Department of Veterans Affairs, the State Department and its associated agencies, the Department of Homeland Security. And we know now from our Republican friends that border protection is a dire national security issue. Add all that together. Then you can calculate the share for the interest on the debt that we pay each year. All those activities I’ve just described come to 21% of all federal spending. Calculating in that percentage as a the amount it contributes to the debt burden gives you $254 billion.. And so you add all of that up together and you get $1.767 trillion.

Jesus Christ.  What about CIA and other intelligence spending?

All the intelligence agencies are in the Pentagon budget except for the intelligence agencies for the State Department, Coast Guard and  the Department of Homeland Security. Those are the few other things that are not in the Pentagon budget that are distributed in the other agencies that I’ve described.  When they last published the total amount for the intel budget it was over $120 billion, but it’s all embedded in these various agencies.

Since the budget was published, there’s been some wailing and lamentation that because of irksome spending restraints, this budget  actually represents a cut or at least restraint on defense spending. What’s your view on that?

Well, last yea the budget deal that then-Speaker Kevin McCarthy negotiated with the Democrats for the Pentagon allowed only a 1% increase in defense spending. But because of the screwy way that we actually calculate things, if you put together everything we spent just for the Pentagon without all those other items I mentioned, last year, it looks like we will have spent $968 billion, while for 2025, Biden’s requesting $921 billion. So yes, that’s a cut. But that doesn’t include the supplementals that Biden will request later this year for the Pentagon, for Ukraine, Israel, God knows what, that will get us back into competition with 2024. The reason why 2024 is higher than the Biden request is because it had 60 billion worth of emergency supplementals that Congress is about to approve and that money is counted in my total. But because of the broken accounting rules that we use for the budget, that money’s not counted when you calculate the deal that McCarthy made with the Democrats, and that’s emergency money that doesn’t count on budget cap.

For years we had the Overseas Contingency Operations defense spending, the so called war budget, which was the extra money the military got for actually fighting wars in Afghanistan and elsewhere. Are we getting back to that?

Yes.  The politically-derived budget caps don’t apply to that money.  And it’s a lot more than just for the wars; lots of billions for goodies for everybody added each year there. It’s all part of the hocus pocus ways that Congress allows itself to appropriate money so it can pretend that it’s using restraint, but actually is exploiting all kinds of loopholes to increase whatever cap or restraint they pretend that they’ve added to the defense budget.

What’s the next budgetary legislative stage that we’re going to endure?

:We haven’t finished with 2024 yet, because Congress  has gotten into this habit of never passing budgets on time. And it also helps the Speaker of the House and the Majority Leader of the Senate discipline members so they don’t get out of the line on things. We do these things called continuing resolutions that keep the money flowing but only at the level approved in the previous year. And we’re in that situation for the Defense Department for 2024. Next week or the week after, they’re going to resolve that and pick a final total for 2024, which will include most, but probably not all of the emergency supplemental that Biden requested for Ukraine, Israel, Taiwan, and defense industrial base spending. So that number will become final in two or three weeks. We have barely begun on the 2025 consideration in Congress that will take the next three, four months and we’ll have another continuing resolution because they won’t pass things in time for the beginning of the fiscal year on October 1st, and we’ll go through this charade once again. And because this is an election year, it’ll be all that more sloppy, painful, and unappealing to observe.

Then when they do it, Chuck Schumer and whoever is the Speaker of the House will pat themselves on the back and say, ‘well, we’ve done a great job. Who says we can’t do anything. We just got the budget finally passed.’ But that will be months late yet again.

Are there items tacked onto the defense bills that have nothing to do with defense? 

Yes. There’s two bills. One is the National Defense Authorization Act, which is the bill that goes to the House and Senate Armed Services Committees. That’s a policy bill. It doesn’t make money actually available to be spent, but it pretends it does. It has lots of numbers in it; it’s a tar baby for all kinds of crazy stuff or politically driven stuff because the legislative process is so broken.  Members don’t have an opportunity to do stuff on the floor of the House and Senate and especially in the Senate because the Majority Leader exploits the rules to make amendments impossible. The National Defense Authorization Act is one of those bills where they actually get a chance to do amendments and they do all kinds of crazy stuff, lots of stuff that has absolutely nothing to do with national defense.  Last year they had 600 amendments for that bill.

Whew.

But they don’t really get debated. This is yet another way that the Majority Leader, Chuck Schumer, controls things. If you’re a Senator, you have to supplicate Schumer to get him to accept your amendment. That will then will get into a package that he’s blessed and it’ll be adopted wholesale by the Senate with perfunctory debate and members giving staff-written speeches about ‘this is a wonderful bill. It includes my important amendment to increase ice block cutting in Minnesota’ and all kinds of other crazy stuff. Every one of these will have been approved by Schumer or his agents as politically acceptable. If you are a dissenter and have a problem with how things are done in the Pentagon or anywhere else, you will not get Schumer’s blessing and your amendment will not be added to his package to be dumped into the National Defense Authorization Act, and you’ll be out in the cold. We go through essentially the same process with the appropriations bill, which is the one that actually makes the money available to all these agencies. Yet again, Schumer controls the process where if he likes the smell of your amendments and it’s okay with the prevailing political dogma that week or that month or for the last decade, it’ll get included. And if you have something that that Chuck Schumer doesn’t like, your amendment will be out in the cold.

Was it always like this?

When the Senate described itself as the world’s greatest deliberative body back in the 1970s and eighties, it would have a process where a bill would come up on the floor in the Senate, and the Senate took great pride in the fact that it had unlimited amendments, and you could offer an amendment on anything you wanted to all of these bills, whether it’s the National Defense Authorization Act or the FAA Authorization Act, and there would be a proper debate, and then the Senate would vote and the majority of those senators present in voting would prevail.

Today it’s a fundamentally broken process because of the automatic filibuster, which allows the party leaders to totally control things. Unless a Senator can somehow put together sixty votes to override a filibuster, Schumer and McConnell can simply prevent your amendment from even coming to the floor, let alone get debated. It’s also a corrupt process because if you legislate in ways that Chuck Schumer, or whoever is the leader, doesn’t like or your idea is a pain in the ass for the Democratic, or Republican, caucus, you will be on the outs.  Furthermore, Schumer, and McConnell control a large portion of the money that you need for your reelection campaign. And if you don’t behave yourself, you’ll be on the outs, not just on getting your amendment adopted, but you’ll be on the outs so far as getting any of his money is concerned. And for the money that he doesn’t directly control, he’ll be sending the message to the big political donors, ‘don’t give anything to Senator So and So. He’s not one of us; he’s not a good boy.’  That’s the way we do business these days.

Getting back to the defense bill, I saw an item this morning that the Navy is saying they all have to cut back Virginia class submarine production from two to one next year because of their terrible financially straitened circumstances. How do we read that?

There’s two things going on there. One is that the Navy has requested a gigantic ship-building budget, something like $45 billion. The problem is that navy ships are so expensive these days that you can’t fit much dirt into that bag. Those submarines are about $3 billion apiece. Aircraft carriers, and we’re paying for two more, are about $13 billion apiece. They have a brand new ‘low cost’ frigate that’s getting into production this year. Those come in at $1 billion apiece. When you have ships that cost these amounts, even with a gigantic budget, like $45 billion, you can’t buy many of them. The second thing that’s going on is the Navy is tickling the system. They’re saying, ‘Oh dear, we can only afford one sub this year because we’re so stretched running. And isn’t that just terrible?’ So they’re tickling Congress where it feels good, and they’re saying, ‘okay, when you add money, add money for another submarine.’

So does that mean the budget will grow beyond what the President has asked for?

The Biden request is a floor, not a ceiling.

And the other game that goes on is they are actually limited in a relative sense in the billions of dollars that they can add on each year. So the staff on the appropriations committee and the two armed services committees, they go looking for things to cut in the accounts in the Pentagon budget where nobody’s paying much attention. So they can then plow that money back into the stuff that the Navy wants for these submarines, or that Senator X, Y, or Z wants for a research and development program that just happens to be performed in his, or her, state and just happens to be from that company that gave him a healthy political contribution last year.  One of the things the staffs love to cut is training money for the Air Force and others,  because they’ll declare the request to have been excessive. They’ll add that few hundred million dollars to the pot for goodies that members of Congress want. An added problem, of course, is that the Air Force is already way, way behind on trending hours for pilots, and that account needs more money, not less money. There are all kinds of other games that the staff at these committees play to pretend they’re taking out unuseful money, and paying for the oh, so wonderful ideas that members of Congress want for their special requests.

Thank you. At least we’ve been warned.

A Low-Trust Society Is an Impoverished Society

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By Charles Hugh Smith

Source: Of Two Minds

The sole remaining reservoirs of trust in American life are personal networks, local enterprises and local institutions.

It’s not exactly news that social trust has declined significantly in the United States. Surveys find that public trust in institutions and the professional classes that dominate those institutions has cratered. (see chart below) Social trust–our confidence that other people are trustworthy–has also fallen to multi-decade lows.

This was not the case in decades past. Americans maintained high levels of trust in their institutions, government and fellow citizens. The decline in social trust is across the entire spectrum: our trust in institutions, professional elites and our fellow Americans has declined precipitously.

The causes of this decay of social trust can be debated endlessly, but several factors are obvious:

1. Institutions forfeited the trust of the citizenry by withholding / editing realities to serve the interests of hidden agendas and insiders’ careers. The Vietnam War was pursued on fabrications, as was the second Gulf War to topple Saddam. Watergate eroded trust on multiple levels, as did the Church Committee’s investigation of America’s security agencies’ domestic spying / over-reach.

2. The managerial / professional elites at the top of the nation’s institutions no longer put the citizenry’s interests above their own. The public’s trust has eroded as institutions are primarily viewed as vehicles for self-enrichment and career advancement: healthcare CEOs pay themselves millions, higher education is bloated with layers of non-teaching administration, defense contractors and the Pentagon have greased the revolving door to the benefit of incumbents and insiders, and so on, in an endless parade of self-serving cloaked with smirking PR claims of “serving the public.”

The shift from a high-trust society to a low-trust society is consequential economically, politically and socially. Low-trust societies have stagnant economies, as nobody trusts anyone they don’t know personally or through personally trusted networks, and nobody trust institutions to function effectively or fulfill their stated mission to serve the public good.

Faced with incompetent, unaccountable, corrupt bureaucracies and a culture overflowing with scams, frauds, imposters and get-rich-quick schemes, people give up and drop out. Rather than start a business and accept all the risks just to get dumped on or ripped off, they don’t even try to start a business. Given the financial insecurity that is now the norm, they decide not to get married or have children.

The vast trading networks of the Roman Empire were based on personal trusted networks and trust in Rome’s functionaries / institutions. The owners of trading ships dealt with trusted captains and merchants, who then paid duties to Roman functionaries in Alexandria and other major trading ports.

In other words, tightly bound personal trusted networks work well as long as the state institutions that bind the entire economy are trusted as fair and reliable–not perfect, of course, but efficient and “good enough.”

But when public institutions are viewed as unfair, unreliable, corrupt or incompetent, the entire economy decays. Even personal trusted networks cannot survive in an economy of unfair, unreliable, corrupt or incompetent state bureaucracies and private institutions.

The American economy is now dominated by enormous privately owned and managed monopolies and cartels that are the private-sector equivalent of self-serving state bureaucracies. Big Tech, Big Pharma, Big Healthcare, Big Ag, Big Finance, etc., are even worse than state bureaucracies because there are no legal requirements for transparency or recourse. Try getting a response from a Big Tech corporation when you’ve been shadow-banned or sent to Digital Siberia.

The sole remaining reservoirs of trust in American life are personal networks, local enterprises and local institutions. These are not guaranteed, of course; in many locales, even these reservoirs have been drained. But in other locales, enterprises and institutions such as the county water utility, the local newspaper, the local community college, etc. continue to earn the trust of the public by performing the services they exist to provide effectively and at a reasonable cost.

The larger the institution and the greater its wealth and power, the lower the social trust–for good reasons. The greater the influence of the managerial elites, the greater the disconnect from the everyday experiences of the citizenry and customers, and the more extreme the self-serving PR.

Sure, I trust Big Tech, Big Pharma, Big Healthcare, Big Finance–to rip me off, profiteer, send me obfuscating bills, jack up junk fees, make it impossible to contact them, and send me to Digital Siberia if I complain.

The divide between the elites and the commoners should prompt us to examine the low-trust path we’re sliding down:

In a society in which everything is phony, low quality or fraudulent, you’re taking a chance trusting anyone you don’t know personally–and even that can be risky now that self-aggrandizing flim-flam is the last remaining path to financial security for non-elites.

A low-trust society is an impoverished society, economically stagnant and socially threadbare. That’s where we are now, and the more fragmented, greedy, self-serving, desperate and deranged we become, the lower the odds that we’ll find the means to rebuild trust.

Sadly, we already know that anyone claiming to “rebuild trust” is spouting PR designed to mask self-enrichment. We also know that the vast army of well-paid flacks, factotums, enforcers, happy-story apologists, lackeys, toadies and sell-out minions are declaring “everything’s great!”

Just mumble, “Uh, sure” and continue to Tune in (to degrowth), drop out (of hyper-consumerism and debt-serfdom) and turn on (to self-reliance and relocalizing capital and agency).

Net Zero, the Digital Panopticon and the Future of Food 

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By Colin Todhunter

Source: Off-Guardian

The food transition, the energy transition, net-zero ideology, programmable central bank digital currencies, the censorship of free speech and clampdowns on protest. What’s it all about? To understand these processes, we need to first locate what is essentially a social and economic reset within the context of a collapsing financial system.

Writer Ted Reece notes that the general rate of profit has trended downwards from an estimated 43% in the 1870s to 17% in the 2000s. By late 2019, many companies could not generate enough profit. Falling turnover, squeezed margins, limited cashflows and highly leveraged balance sheets were prevalent.

Professor Fabio Vighi of Cardiff University has described how closing down the global economy in early 2020 under the guise of fighting a supposedly new and novel pathogen allowed the US Federal Reserve to flood collapsing financial markets (COVID relief) with freshly printed money without causing hyperinflation. Lockdowns curtailed economic activity, thereby removing demand for the newly printed money (credit) in the physical economy and preventing ‘contagion’.

According to investigative journalist Michael Byrant, €1.5 trillion was needed to deal with the crisis in Europe alone. The financial collapse staring European central bankers in the face came to a head in 2019. The appearance of a ‘novel virus’ provided a convenient cover story.

The European Central Bank agreed to a €1.31 trillion bailout of banks followed by the EU agreeing to a €750 billion recovery fund for European states and corporations. This package of long-term, ultra-cheap credit to hundreds of banks was sold to the public as a necessary programme to cushion the impact of the pandemic on businesses and workers.

In response to a collapsing neoliberalism, we are now seeing the rollout of an authoritarian great reset — an agenda that intends to reshape the economy and change how we live.

SHIFT TO AUTHORITARIANISM

The new economy is to be dominated by a handful of tech giants, global conglomerates and e-commerce platforms, and new markets will also be created through the financialisation of nature, which is to be colonised, commodified and traded under the notion of protecting the environment.

In recent years, we have witnessed an overaccumulation of capital, and the creation of such markets will provide fresh investment opportunities (including dodgy carbon offsetting Ponzi schemes)  for the super-rich to park their wealth and prosper.

This great reset envisages a transformation of Western societies, resulting in permanent restrictions on fundamental liberties and mass surveillance. Being rolled out under the benign term of a ‘Fourth Industrial Revolution’, the World Economic Forum (WEF) says the public will eventually ‘rent’ everything they require (remember the WEF video ‘you will own nothing and be happy’?): stripping the right of ownership under the guise of a ‘green economy’ and underpinned by the rhetoric of ‘sustainable consumption’ and ‘climate emergency’.

Climate alarmism and the mantra of sustainability are about promoting money-making schemes. But they also serve another purpose: social control.

Neoliberalism has run its course, resulting in the impoverishment of large sections of the population. But to dampen dissent and lower expectations, the levels of personal freedom we have been used to will not be tolerated. This means that the wider population will be subjected to the discipline of an emerging surveillance state.

To push back against any dissent, ordinary people are being told that they must sacrifice personal liberty in order to protect public health, societal security (those terrible Russians, Islamic extremists or that Sunak-designated bogeyman George Galloway) or the climate. Unlike in the old normal of neoliberalism, an ideological shift is occurring whereby personal freedoms are increasingly depicted as being dangerous because they run counter to the collective good.

The real reason for this ideological shift is to ensure that the masses get used to lower living standards and accept them. Consider, for instance, the Bank of England’s chief economist Huw Pill saying that people should ‘accept’ being poorer. And then there is Rob Kapito of the world’s biggest asset management firm BlackRock, who says that a “very entitled” generation must deal with scarcity for the first time in their lives.

At the same time, to muddy the waters, the message is that lower living standards are the result of the conflict in Ukraine and supply shocks that both the war and ‘the virus’ have caused.

The net-zero carbon emissions agenda will help legitimise lower living standards (reducing your carbon footprint) while reinforcing the notion that our rights must be sacrificed for the greater good. You will own nothing, not because the rich and their neoliberal agenda made you poor but because you will be instructed to stop being irresponsible and must act to protect the planet.

NET-ZERO AGENDA

But what of this shift towards net-zero greenhouse gas emissions and the plan to slash our carbon footprints? Is it even feasible or necessary?

Gordon Hughes, a former World Bank economist and current professor of economics at the University of Edinburgh, says in a new report that current UK and European net-zero policies will likely lead to further economic ruin.

Apparently, the only viable way to raise the cash for sufficient new capital expenditure (on wind and solar infrastructure) would be a two decades-long reduction in private consumption of up to 10 per cent. Such a shock has never occurred in the last century outside war; even then, never for more than a decade.

But this agenda will also cause serious environmental degradation. So says Andrew Nikiforuk in the article The Rising Chorus of Renewable Energy Skeptics, which outlines how the green techno-dream is vastly destructive.

He lists the devastating environmental impacts of an even more mineral-intensive system based on renewables and warns:

“The whole process of replacing a declining system with a more complex mining-based enterprise is now supposed to take place with a fragile banking system, dysfunctional democracies, broken supply chains, critical mineral shortages and hostile geopolitics.”

All of this assumes that global warming is real and anthropogenic. Not everyone agrees. In the article Global warming and the confrontation between the West and the rest of the world, journalist Thierry Meyssan argues that net zero is based on political ideology rather than science. But to state such things has become heresy in the Western countries and shouted down with accusations of ‘climate science denial’.

Regardless of such concerns, the march towards net zero continues, and key to this is the United Nations Agenda 2030 for Sustainable Development Goals.

Today, almost every business or corporate report, website or brochure includes a multitude of references to ‘carbon footprints’, ‘sustainability’, ‘net zero’ or ‘climate neutrality’ and how a company or organisation intends to achieve its sustainability targets. Green profiling, green bonds and green investments go hand in hand with displaying ‘green’ credentials and ambitions wherever and whenever possible.

It seems anyone and everyone in business is planting their corporate flag on the summit of sustainability. Take Sainsbury’s, for instance. It is one of the ‘big six’ food retail supermarkets in the UK and has a vision for the future of food that it published in 2019.

Here’s a quote from it:

“Personalised Optimisation is a trend that could see people chipped and connected like never before. A significant step on from wearable tech used today, the advent of personal microchips and neural laces has the potential to see all of our genetic, health and situational data recorded, stored and analysed by algorithms which could work out exactly what we need to support us at a particular time in our life. Retailers, such as Sainsbury’s could play a critical role to support this, arranging delivery of the needed food within thirty minutes — perhaps by drone.”

Tracked, traced and chipped — for your own benefit. Corporations accessing all of our personal data, right down to our DNA. The report is littered with references to sustainability and the climate or environment, and it is difficult not to get the impression that it is written so as to leave the reader awestruck by the technological possibilities.

However, the promotion of a brave new world of technological innovation that has nothing to say about power — who determines policies that have led to massive inequalities, poverty, malnutrition, food insecurity and hunger and who is responsible for the degradation of the environment in the first place — is nothing new.

The essence of power is conveniently glossed over, not least because those behind the prevailing food regime are also shaping the techno-utopian fairytale where everyone lives happily ever after eating bugs and synthetic food while living in a digital panopticon.

FAKE GREEN

The type of ‘green’ agenda being pushed is a multi-trillion market opportunity for lining the pockets of rich investors and subsidy-sucking green infrastructure firms and also part of a strategy required to secure compliance required for the ‘new normal’.

It is, furthermore, a type of green that plans to cover much of the countryside with wind farms and solar panels with most farmers no longer farming. A recipe for food insecurity.

Those investing in the ‘green’ agenda care first and foremost about profit. The supremely influential BlackRock invests in the current food system that is responsible for polluted waterways, degraded soils, the displacement of smallholder farmers, a spiralling public health crisis, malnutrition and much more.

It also invests in healthcare — an industry that thrives on the illnesses and conditions created by eating the substandard food that the current system produces. Did Larry Fink, the top man at BlackRock, suddenly develop a conscience and become an environmentalist who cares about the planet and ordinary people? Of course not.

Any serious deliberations on the future of food would surely consider issues like food sovereignty, the role of agroecology and the strengthening of family farms — the backbone of current global food production.

The aforementioned article by Andrew Nikiforuk concludes that, if we are really serious about our impacts on the environment, we must scale back our needs and simplify society.

In terms of food, the solution rests on a low-input approach that strengthens rural communities and local markets and prioritises smallholder farms and small independent enterprises and retailers, localised democratic food systems and a concept of food sovereignty based on self-sufficiency, agroecological principles and regenerative agriculture.

It would involve facilitating the right to culturally appropriate food that is nutritionally dense due to diverse cropping patterns and free from toxic chemicals while ensuring local ownership and stewardship of common resources like land, water, soil and seeds.

That’s where genuine environmentalism and the future of food begins.

The US Economy Looks Good On Paper – Here’s Why It’s Actually A Disaster In Progress

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By Brandon Smith

Source: Alt-Market.us

One of my favorite false narratives floating around corporate media platforms has been the argument that the American people “just don’t seem to understand how good the economy really is right now.” If only they would look at the stats, they would realize that we are in the middle of a financial renaissance, right? It must be that people have been brainwashed by negative press from conservative sources…

I have to laugh at this claim because it’s a very common one throughout history – It’s an assertion made by almost every single political regime right before a major collapse. These people always say the same things, and when you study economics as long as I have you can’t help but throw up your hands and marvel at their dedication to the propaganda.

One example that comes to mind immediately is the delusional optimism of the “roaring” 1920s and the lead up to the Great Depression. At the time around 60% of the US population was living in poverty conditions (according to the metrics of the decade) earning less than $2000 a year. However, in the years after WWI ravaged Europe, America’s economic power was considered unrivaled.

The 1920s was an era of mass production and rampant consumerism but it was all fueled by easy access to debt, a condition which had not really existed before in America. It was this illusion of prosperity created by the unchecked application of credit that eventually led to the massive stock market bubble and the crash of 1929. This implosion, along with the Federal Reserve’s policy of raising interest rates into economic weakness, created a black hole in the US financial system for over a decade.

There are two primary tools that various failing regimes will always use to distort the true conditions of the economy: Debt and inflation. In the case of America today, we are experiencing BOTH problems simultaneously and this has made certain economic indicators appear healthy when they are, in fact, highly unstable. The average American knows this is the case because they see the effects daily. They see the damage to their wallets, to their buying power, in the jobs market and in their quality of life. This is why public faith in the economy has been stuck in the dregs since 2021.

The establishment can shove out-of-context stats in people’s faces, but they can’t force the populace to see a recovery that simply does not exist. Let’s go through a short list of the most faulty indicators and the real reasons why the fiscal picture is not as rosy as the media would like us to believe…

The “Miracle” Labor Market Recovery

In the case of the US labor market, we have a clear example of distortion through inflation. The $8 trillion+ dropped on the economy in the first 18 months of the pandemic response sent the system over the edge into stagflation land. Helicopter money has a habit of doing two things very well: Blowing up a bubble in stock markets and blowing up a bubble in retail. Hence, the massive rush by Americans to go out and buy, followed by the sudden labor shortage and the race to hire (mostly for low wage part-time jobs).

The problem with this “miracle” is that inflation leads to price explosions, which we have already experienced. The average American is spending around 30% more for goods, services and housing compared to what they were spending in 2020. This is what happens when you have too much fiat money chasing too few goods and limited production.

The jobs market looks great on paper, but the majority of jobs generated in the past few years are jobs that returned after the covid lockdowns ended (the same lockdowns Democrats tried to keep in place perpetually). The rest are jobs created through monetary stimulus, and then there is the issue of “immigrant jobs” and data that is revised to the negative months later.  I suspect we won’t ever hear the real stats unless Trump enters office in 2025.  Then the media discussion will focus intently on how terrible the labor market really is.

Part time low wage service sector jobs are not going to keep the country rolling for very long in a stagflation environment. The question is, what happens now that the stimulus punch bowl has been removed?

Just as we witnessed in the 1920s, Americans have turned to debt to make up for higher prices and stagnant wages by maxing out their credit cards to historic levels. With the central bank keeping interest rates high, the credit safety net will soon falter. This condition also goes for businesses; businesses that will soon jump headlong into mass layoffs when they realize the party is over.  It happened during the Great Depression and it will happen again today.

Stock Market Bonanza

We saw cracks in in the armor of the financial structure in 2023 with the spring banking crisis, and without the abrupt Federal Reserve backstop many more small and medium banks would have dropped dead. The weakness of US banks is offset by the relative strength of the US dollar, which lures in foreign investors hoping to protect their wealth using dollar denominated assets.

But something is amiss. Gold and Bitcoin have rocketed higher along with stocks and the dollar. This is the opposite of what’s supposed to happen. Gold and BC are supposed to be hedges against a weak dollar and weak equities, right? If global faith in the dollar and in stocks is so high, why are investors diving into protective assets like gold?

Again, as noted above, inflation distorts everything. Tens of trillions of extra dollars printed by the Fed are floating around and it’s no surprise that much of that cash is flooding into the stock market which simply pushes higher right along with prices on the shelf. But, gold and BC are telling us a more nuanced story about what’s really happening.

Right now, the US government is adding around $1 Trillion every 100 days to the national debt as the Fed holds rates higher to fight inflation.  Higher interest means exponential debt conditions, and this debt is going to crush America’s financial standing for global investors who will eventually ask HOW the US is going to handle that growing millstone? As I predicted years ago, the Fed has created a perfect Catch-22 scenario in which the US must either return to rampant inflation, or, face a debt breakdown. In either case, US dollar denominated assets will lose their appeal and stock markets will ultimately plummet.

Beyond this reality, stocks are not a leading indicator of anything, let alone the stability of the financial system. Stocks are a trailing indicator; they crash well after all the other warning signals have made it obvious that something is wrong. Average Americans, for good reason, do not care what stock markets have to say.

Healthy GDP Is A Complete Farce

Beyond the stock market, GDP is the most common out-of-context stat used by governments to convince the citizenry that all is well. It is yet another stat that is entirely manipulated by inflation. It is also manipulated by the way in which modern governments define “production and market value.”

GDP is primarily driven by spending. Meaning, the higher inflation goes, the higher prices go, and the higher GDP climbs (to a point). Eventually prices go too high, credit cards tap out and spending ceases. But, for a short time inflation makes GDP (as well as retail) look good.

Another factor that creates a bubble is the reality that government spending is actually included in the calculation of GDP. That’s right, every dollar of your tax money that the government wastes helps the establishment by propping up GDP numbers. This is why government spending increases will never stop – It’s too valuable for them to spend as a way to make the economy appear healthier than it is.

The Real Economy Is Eclipsing The Fake Economy

The bottom line is that Americans used to be able to ignore the warning signs because their bank accounts were not being directly affected. This is over. Now, every person in the country is dealing with a massive decline in buying power and higher prices across the board in all assets. Even the wealthy are seeing a compression to their profits and many are struggling to keep their businesses in the black.

The unfortunate truth is that the elections of 2024 will probably be the turning point at which the whole edifice comes tumbling down. Even if the public votes for change, the system is already broken and cannot be repaired without a complete overhaul. We have consistently avoided taking our medicine and our weaknesses have only accumulated.

People have lost faith in the economy because they have not faced this kind of uncertainty since the 1930s. Even the stagflation crisis of the 1970s will likely pale in comparison to what is about to happen. On the bright side, at least a large number of Americans are aware of the threat, as opposed to the 1920s when the vast majority of people were utterly conned by the government, the banks and the media into thinking all was well. Knowing is the first step to preparing.

Why People Don’t Want To ‘Work’ Anymore

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It’s not that people are lazy, there’s something much deeper going on that requires better questions.

By Joe Martino

Source: The Pulse

Last time I wrote about the increasing mental health crisis happening around the world. I didn’t write it to bring about negativity but more so to bring awareness to the reality of our current moment. Awareness is the first step toward any change.

That piece coupled with a video I did the other day on a collectively felt sense of meaninglessness, I believe these two subjects go hand in hand.

Tied in with both of those subjects is the decade-over-decade increase in the difficulty of surviving financially in our modern world.

More and more younger people have been struggling to buy a home and make ends meet due to the high cost of living and stagnating wages. For many, affording necessities in life has become difficult despite working 40-60 hours per week.

This reality recently drove a viral TikTok video that highlights the frustration younger generations feel and the misconceptions associated with their position.

Before you watch it, conversations I have with people about this issue don’t just exist in the Gen Z and Millenial age group. I’ve spoken to people in their 50s and 60s who have also become completely disenfranchised about the state of work.

Also, Quiet Quitting is a trend on the rise. Simply put, people are going to work and doing the bare minimum to stay employed at greater and greater rates. Gallup estimates that in the US 50% of employees have Quiet Quit and that it’s an increasing crisis. In Japan, 94% of employees report being disengaged at work.

Perhaps unsurprisingly, Gallup blames the trend on poor management. This is where humans really have to start waking up and thinking bigger in my opinion, more on this shortly.

Alright, let’s get to the video.

She makes many good points, and if we take her words to heart, clearly she isn’t lazy and trying to ‘not work.’ She is passionate about her work but sees the gap between salary and the reality of living a comfortable life. She also sees the value in work… just not like how it is today.

Not surprisingly, many have agreed with her while many have attacked her. Let’s explore why she might feel this way about life and work. (Note: There is an element that sometimes people can judge, hate, and avoid work so much that it’s a self sabotage situation, I talk about that here.)

  1. She and the generation she represents, even people like her from other generations, are just lazy or may even grow out of this idea.
  2. She’s lying about enjoying her job and if she were to quit and do something she likes she’d find just enough satisfaction to not care about the fact that she can’t afford to do anything beyond eat, have shelter, and enjoy a few things.
  3. Maybe she’s just permanently unhappy and therefore no matter what she does, she will find a way to frame it as negative and bad.
  4. From a position of common sense and orienting to our current environment, this girl realizes the losing game she is part of and is making the observation that this isn’t a reasonable game to play.

As an extension to number 4, the fact that multiple generations of people not only realize how rigged the game is, don’t want to play the game AND are saying something about it provides an evolutionary pressure for society to address it.

The key is, can we listen vs. sitting in judgment?

Oddly, reaction videos are all the craze on YouTube these days. When people make videos like hers or when something happens, creators turn on their cameras and watch the video while simultaneously reacting to it.

Usually, creators reacting to videos like this from Gen Z’ers are well off themselves or conservatives. Their career often stems around having a ‘hot take,’ creating polarity, and leaning into drama so their content can get a lot of views and thus pay their bills.

Sadly, this dynamic in content creation is often missed by the user, not realizing that the host of the video says what they say primarily because they know it will make them money even if it’s not entirely what they think.

Further, we never get to the bottom of what people bring forth because we are skipping the step of coming to the table in good faith and empathizing with each other’s position. Instead, we get a culture stuck in a debating/debunking/warring mindset. Good luck getting good faith conversation to go viral when most out there are focused on hi-jacking your attention.

Sensing Beyond The Surface

Sensing Beyond The Surface

  1. ‘Working’ is Important – Being part of something, contributing to something, living in a community and having a role, all add meaning and purpose to life.

    Being a creative, productive person is a necessity for human well-being, even if only for a few hours a day. No one is saying let’s sit around and do nothing all day. But should we have to work 40 or 50 hours a week to simply survive? No, that is the result of poor system design. We have advanced our technology incredibly to provide the necessities of life yet we work more than we ever have. Doesn’t something seem wrong there?
    Our cultural idea of needing to work 40 hours a week for most of our lives ‘just to be a contributor’ is rather warped. Many cultures have thrived working a few hours a day, yet look at us – working constantly yet experiencing mental illness, poor health, and meaninglessness at massive rates.
    It would benefit us to have a deeper look at WHY our society is currently producing results no one wants all while destroying our environment and people. Too many discussions about this topic think small and are limited to lazy questions from system protectors or political ideologies. This won’t get us to the root of the issue and why people feel the way they do.
  2. Cost of Living is Too High, But Why? – I’m 36, when my parents were my age one worked a mid-level job in corporate and the other a grocery store. They made enough to buy a fairly big house near Toronto, pay off the mortgage by 40 and raise two kids. These days, they’d need to make $100,000+ each just to buy the same house, and forget about paying off the mortgage by 40. Even when interest rates were 22% back then, things were a lot easier.

    Often, when I talk about mortgage rates with older generations, and how it is becoming hard to afford homes, they say “Back in my day rates were 18% – 22%.” The sense that people aren’t listening to what is being said is palatable. We’re not thinking clearly. In 1945 a US citizen dedicated on average 25% of his salary to pay rent/mortgage. In 2019 it was 47%. It’s higher now. And of course in that time interest rates have come down dramatically. Plain and simple, the cost of living has risen incredibly and wages didn’t climb at anywhere near the same rate.

    This is a losing game, and only set to get worse given the path we’re on. That said, this is what anyone should expect in a system driven by fractional reserve banking. When we understand the design of our system, we understand this isn’t about one political view or another, it’s about bad system design. We have to think deeper.
  3. Evolutionary Pressure – As our society declines more and more, younger people who look ahead to their future see something undesirable. The life their parents lived is no longer possible and they see the game is rigged. They aren’t lazy, they are demoralized.
    A left hemisphere reductionist and othering view, who sees humans as cogs in a system might say “Nah, people are lazy. Grow up. Things are fine.” Yet when we take a step back and include a sense of something sacred, our entire perspective changes. Why are we seeing life and merely working to uphold a rigged economy? Is this really all we are capable of? Why are we always trying to protect societal design producing results we don’t like? Do we realize we made all this up and it can be different?
    Sure, there are aspects of younger generations that I think are immature too, we’ve all been through it, but at the same time, younger people are not buying the rigged game and thus are not dying to play it. They are right. They are smart to speak up.
    And to tie things back to meaninglessness and mental health issues, I think we’re seeing now how this all ties into our current moment. People don’t thrive playing a losing game where basic needs are gated behind 100 foot walls.

    Movements toward system redesign have been around for many many decades. It’s not a new idea to discuss how rigged, limiting, and problematic our existing societal design is, but more people are waking up to it now.
    When I spoke about this stuff in 2009 and 2010, most people laughed at me thinking I was nuts. Now, they mostly agree with me. We’re on fertile ground for something new. For a while, we’ll likely live feeling and sensing the possibility of a new society while living in the old. Feeling that we’re not sure we quite belong to a visible society entirely.
    This is the Metacrisis. This is the shift in consciousness as I’ve always called it. It’s an evolutionary pressure that begs us to look deeper than political ideology and hot takes on why someone we don’t agree with is wrong. It begs us to re-taste the sacred. To examine what it means to be human and why we’re here.
    I believe the speed at which it unfolds is intimately connected to the quality of our attention, consciousness and state of being. The more capacity we have to steward a better world, the more it will unfold.
    Change starts within.

The fundamental crisis of the West

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By Veniamin Popov

Source: New Eastern Outlook

A growing number of media outlets in America and in Europe have recently reached the conclusion that “rules-based international order” long espoused by the West has failed.

In essence, this means that the position of the Western powers in the world has weakened: they have failed to destroy the Russian economy by imposing sanctions, and the war in Gaza has demonstrated that the US and the Western European countries are far from all-powerful.

The media frequently claim that Russia’s special military operation in Ukraine has changed the international situation, in that it has made clear the limited capabilities of the West and deepened the rift between the West and the Global South.

The Ukrainian conflict and the war in Gaza have demonstrated to the whole world, and above all to ordinary people in the West, that their ruling elites are unable to grasp this reality, lack strategic vision and are generally guided by their own personal interests.

The ruling elites in the West have demonized Russia in every possible way and have come to believe the myth that Russia can be strategically defeated. This is a huge miscalculation and this conclusion will become obvious to all in the very near future. The present author is reminded of the junker Grushnitsky, in Lermontov’s “A Hero of Our Time,” a fantasist who plays the role of an unworldly romantic for so long that he begins to believe it himself.

As Vladimir Putin has aptly put it, “Russophobia, like any other ideology based on racism, national superiority and exclusivity, blinds the person who subscribes to it and deprives them of reason.”

The state of the “rules-based international order” is becoming increasingly alarming for many Western powers. According to an article published in the weekly journal the Economist on February 15, so-called national conservatives, who “suspect free markets of being rigged by the elites,” are gaining in influence in the US and Europe. They are also hostile to migration, despise pluralism, especially multiculturalism, and are obsessed with dismantling institutions they see as tainted by globalism.

Despite their differences, these national conservatives are united by their hostility to shared enemies, including migrants, especially Muslims, globalists and all their perceived enablers. Donald Trump is leading in the polls in America. The far right is expected to make gains in the European Parliament elections in June. In Germany last December, support for the far-right Alternative for Germany party (AFD) reached a record high of 23 percent, according to polls. Anticipating Rishi Sunak’s loss in the elections, the right wing of Britain’s Conservative Party are hoping to grab power in the party. In 2027, Marine Le Pen may well become president of France.

According to the Economist, the current authorities need to take people’s legitimate concerns seriously: the public in many Western countries see illegal migration as a source of unrest and a drain on the public purse. They worry that their children will grow up poorer than they are. They are concerned about losing their jobs to new technologies. They believe that institutions such as universities and the press have been hijacked by hostile, illiberal, left-wing elites. They view the globalists who have flourished over the last few decades as members of a self-serving, arrogant caste.

These complaints have real merit and mocking them only confirms how detached from reality the elites have become.

The position of Washington and its hangers-on in Europe in relation to Israel’s war crimes against the Palestinians in Gaza has added significantly to the public’s distrust of the West’s ruling elites. By openly supporting the actions of the Netanyahu government, the governments of the Western powers are convincing everyone, including their own populations, of their own policy of double standards: only the lives of Israelis are valued and massacres of Arabs are allowed.

As the Saudi newspaper Arab News reports, Arab and Muslim Americans, and 60 percent of all other Americans, have for months wanted President Joe Biden to pressure Israel into agreeing to an immediate ceasefire in Gaza. The White House has, in effect, ignored these pleas.

In response to this stance, Muslim Americans in nine potentially wavering states met in Dearborn, Michigan, in December 2023 under the slogan “Abandon Biden, Truce Now.” They have vowed not to vote for Biden in the presidential election unless he changes the policies that are enabling Israel’s genocide in the Gaza Strip possible.

The US journal Foreign Affairs, in an article entitled “Gaza and the End of the Rules-Based Order” quotes one G7 diplomat: “We have definitely lost the battle in the Global South. All the work we did with the Global South (around Ukraine) was lost. … Forget the rules, forget the world order. They will never listen to us again.”

The economic recession, which has become a permanent situation for many European states, also provides little room for optimism. In the US, the high inflation and huge government debt are expected to worsen this spring and summer, according to some analysts. The most closely watched indicator of opinions about the economy, a monthly poll conducted by the University of Michigan, has reported that public confidence is at an exceptionally low ebb, about the same level as during the 2007-2009 global financial crisis.

With the presidential election just nine months away, this gloomy mood has become a serious problem for the Democrats. President Joe Biden is already facing a host of challenges to his bid for a second term, starting with concerns about his fitness for office as an 80-year-old man. Another major obstacle to his election bid is the opinion polls that give him low marks for his management of the economy.

The current economic problems are exacerbated by growing inequality, the worsening drug crisis and the proliferation of firearms. The promotion of non-traditional sexual orientation and the encouragement of same-sex couples have cause legitimate outrage to many conservative religious people.

In the European Union between June 6 and 9, more than 400 million voters in 27 countries will elect 720 MEPs to represent them for the next five years. Observers predict an increase in the influence of right-wing conservative parties. One major reason for the heightened interest in the upcoming election is the unprecedented corruption scandal that erupted in the European Parliament in December 2022, when the vice president and several other officials, including three MEPs, were accused of taking bribes. The investigation is ongoing, but it has already revealed instances of illegal activities and immoral behavior on the part of MEPs. Conservatives accuse the EU of being an opaque bureaucracy with vastly overpaid staff, which is disconnected from the reality experienced by ordinary residents of the EU member states, and which spends its vast budgets – totaling hundreds of trillions of euros – not for the common good but for the personal whims and fantasies of its leaders. Inflation and the cost of living are still rising in many European nations, while many blame EU bureaucrats in Brussels for policies such as the Green Deal that have made life more expensive for Europeans by raising the prices of fuel, food and most other essentials. In addition, anti-Russian sanctions, which have led to the rejection of cheap energy from Russia by a number of European countries, have had a negative impact on the well-being of ordinary citizens.

Over the past few weeks, thousands of farmers from across Europe, particularly from Germany, France, Poland, Spain, and Belgium, have taken to the streets to protest against additional spending on Ukraine and against new EU environmental policies that make farming unviable.

The short-sighted policy of the Western elites with regard to the crises in Ukraine and the Gaza Strip is leading to a loss of confidence in the ruling authorities on the part of ordinary citizens. It is easy to imagine their reaction in the event of any further military setbacks by Ukraine or any worsening of the situation within the country.

The position taken by many developing nations with regard to the current international processes is highly symptomatic. In an editorial for the Arabic international newspaper Asharq Al-Awsat, Editor-in-Chief Grhassan Charbel writes: “Zelensky’s position reminded me of remarks by the late Egyptian President Hosni Mubarak to former Iraqi Foreign Minister Hoshyar Zebari, that ‘the one who is covered by the Americans is naked.’ The same phrase could be said by Putin to Zelensky.

Putin has the right to be sarcastic. The leaders of the West did not accept that he could not lose… That he went to Ukraine to punish the entire West and to launch a major coup against a world that was born from the collapse of the (Berlin) Wall and the disappearance of the Soviet Union.”

It is no coincidence that the ruling circles of Western Europe are currently not hiding their anxiety about what they refer to as the “threat posed by Trump and Russia.”

In fact, everything we see happening testifies to the inadequacy of the current ruling elites in the West, who are unable to reasonably and rationally assess the emerging situation, guided as they are solely by short-term personal interests.

It is very possible that they will be swept away by a wave of new unexpected events, and new leaders will come to power.

It is therefore highly likely that 2024 will be a turning point in many respects.

Economic Earthquake Ahead? The Cracks Are Spreading Fast

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By Brandon Smith

Source: The Burning Platform

One of my favorite false narratives floating around corporate media platforms has been the argument that the American people “just don’t seem to understand how good the economy really is right now.” If only they would look at the stats, they would realize that we are in the middle of a financial renaissance, right? It must be that people have been brainwashed by negative press from conservative sources…

I have to laugh at this notion because it’s a very common one throughout history – it’s an assertion made by almost every single political regime right before a major collapse. These people always say the same things, and when you study economics as long as I have you can’t help but throw up your hands and marvel at their dedication to the propaganda.

One example that comes to mind immediately is the delusional optimism of the “roaring” 1920s and the lead up to the Great Depression. At the time around 60% of the U.S. population was living in poverty conditions (according to the metrics of the decade) earning less than $2000 a year. However, in the years after WWI ravaged Europe, America’s economic power was considered unrivaled.

The 1920s was an era of mass production and rampant consumerism but it was all fueled by easy access to debt, a condition which had not really existed before in America. It was this illusion of prosperity created by the unchecked application of credit that eventually led to the massive stock market bubble and the crash of 1929. This implosion, along with the Federal Reserve’s policy of raising interest rates into economic weakness, created a black hole in the U.S. financial system for over a decade.

There are two primary tools that various failing regimes will often use to distort the true conditions of the economy: Debt and inflation. In the case of America today, we are experiencing BOTH problems simultaneously and this has made certain economic indicators appear healthy when they are, in fact, highly unstable. The average American knows this is the case because they see the effects everyday. They see the damage to their wallets, to their buying power, in the jobs market and in their quality of life. This is why public faith in the economy has been stuck in the dregs since 2021.

The establishment can flash out-of-context stats in people’s faces, but they can’t force the populace to see a recovery that simply does not exist. Let’s go through a short list of the most faulty indicators and the real reasons why the fiscal picture is not a rosy as the media would like us to believe…

The “miracle” labor market recovery

In the case of the U.S. labor market, we have a clear example of distortion through inflation. The $8 trillion+ dropped on the economy in the first 18 months of the pandemic response sent the system over the edge into stagflation land. Helicopter money has a habit of doing two things very well: Blowing up a bubble in stock markets and blowing up a bubble in retail. Hence, the massive rush by Americans to go out and buy, followed by the sudden labor shortage and the race to hire (mostly for low wage part-time jobs).

The problem with this “miracle” is that inflation leads to price explosions, which we have already experienced. The average American is spending around 30% more for goods, services and housing compared to what they were spending in 2020. This is what happens when you have too much money chasing too few goods and limited production.

The jobs market looks great on paper, but the majority of jobs generated in the past few years are jobs that returned after the covid lockdowns ended. The rest are jobs created through monetary stimulus and the artificial retail rush. Part time low wage service sector jobs are not going to keep the country rolling for very long in a stagflation environment. The question is, what happens now that the stimulus punch bowl has been removed?

Just as we witnessed in the 1920s, Americans have turned to debt to make up for higher prices and stagnant wages by maxing out their credit cards. With the central bank keeping interest rates high, the credit safety net will soon falter. This condition also goes for businesses; the same businesses that will jump headlong into mass layoffs when they realize the party is over. It happened during the Great Depression and it will happen again today.

Cracks in the foundation

We saw cracks in the narrative of the financial structure in 2023 with the banking crisis, and without the Federal Reserve backstop policy many more small and medium banks would have dropped dead. The weakness of U.S. banks is offset by the relative strength of the U.S. dollar, which lures in foreign investors hoping to protect their wealth using dollar denominated assets.

But something is amiss. Gold and bitcoin have rocketed higher along with economically sensitive assets and the dollar. This is the opposite of what’s supposed to happen. Gold and BTC are supposed to be hedges against a weak dollar and a weak economy, right? If global faith in the dollar and in the U.S. economy is so high, why are investors diving into protective assets like gold?

Again, as noted above, inflation distorts everything.

Tens of trillions of extra dollars printed by the Fed are floating around and it’s no surprise that much of that cash is flooding into the economy which simply pushes higher right along with prices on the shelf. But, gold and bitcoin are telling us a more honest story about what’s really happening.

Right now, the U.S. government is adding around $600 billion per month to the national debt as the Fed holds rates higher to fight inflation. This debt is going to crush America’s financial standing for global investors who will eventually ask HOW the U.S. is going to handle that growing millstone? As I predicted years ago, the Fed has created a perfect Catch-22 scenario in which the U.S. must either return to rampant inflation, or, face a debt crisis. In either case, U.S. dollar-denominated assets will lose their appeal and their prices will plummet.

“Healthy” GDP is a complete farce

GDP is the most common out-of-context stat used by governments to convince the citizenry that all is well. It is yet another stat that is entirely manipulated by inflation. It is also manipulated by the way in which modern governments define “economic activity.”

GDP is primarily driven by spending. Meaning, the higher inflation goes, the higher prices go, and the higher GDP climbs (to a point). Eventually prices go too high, credit cards tap out and spending ceases. But, for a short time inflation makes GDP (as well as retail sales) look good.

Another factor that creates a bubble is the fact that government spending is actually included in the calculation of GDP. That’s right, every dollar of your tax money that the government wastes helps the establishment by propping up GDP numbers. This is why government spending increases will never stop – It’s too valuable for them to spend as a way to make the economy appear healthier than it is.

The REAL economy is eclipsing the fake economy

The bottom line is that Americans used to be able to ignore the warning signs because their bank accounts were not being directly affected. This is over. Now, every person in the country is dealing with a massive decline in buying power and higher prices across the board on everything – from food and fuel to housing and financial assets alike. Even the wealthy are seeing a compression to their profit and many are struggling to keep their businesses in the black.

The unfortunate truth is that the elections of 2024 will probably be the turning point at which the whole edifice comes tumbling down. Even if the public votes for change, the system is already broken and cannot be repaired without a complete overhaul.

We have consistently avoided taking our medicine and our disease has gotten worse and worse.

People have lost faith in the economy because they have not faced this kind of uncertainty since the 1930s. Even the stagflation crisis of the 1970s will likely pale in comparison to what is about to happen. On the bright side, at least a large number of Americans are aware of the threat, as opposed to the 1920s when the vast majority of people were utterly conned by the government, the banks and the media into thinking all was well. Knowing is the first step to preparing.

The second step is securing your own financial future – that’s where physical precious metals can play a role. Diversifying your savings with inflation-resistant, uninflatable assets whose intrinsic value doesn’t rely on a counterparty’s promise to pay adds resilience to your savings. That’s the main reason physical gold and silver have been the safe haven store-of-value assets of choice for centuries (among both the elite and the everyday citizen).

“WHO OWNS THE WORLD?” A SMALL GROUP OF BIG MONEY

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By Peter Koenig

Source: The 4th Media

“Who Owns the World” is the title of an extraordinary documentary, describing how Big-Big Money controls not only every aspect of your life, but has a stranglehold on every government, the political UN body, as well as every UN agency, and all industries and services of this globe.

These largest investors are BlackRock, Vanguard, and State Street.

These same investment groups also control over 90% of the world’s major media. Even Rupert Murdoch’s media empire is majority owned by BlackRock / Vanguard. It is therefore no miracle that hardly any news penetrates the walls of secrecy about these major shareholders of every aspect of human life and life-related activities and businesses.

It is a monopoly that can literally not be opposed by traditional means. They have also invented the “rules-based order” — overruling every international and national law at their will. They know no limits, no ethics and adhere to no human or human rights standard. POWER is them.

The two most powerful investors and investment managers are BlackRock and Vanguard. They are closely linked, to the point where their management is largely inter-changeable. Vanguard is BlackRock’s largest shareholder, meaning that they control BlackRock.

Though Vanguard is not transparent about its own shareholders, Vanguard is owned by the richest families on earth. Vanguard has been created to hide their investments and money transactions.

Through non-profit organizations, like the Rockefeller Foundation, Gates Foundation, Rothschild Foundation, JPMorgan Foundation, Clinton Foundation, Bush Foundation, Albert DuPont Charity Trust – and so on, billions of “donation” money is transferred – tax-free – to Vanguard, a shield for their potentially criminal transactions and funding.

The Bill and Melinda Gates Foundation is the largest funder of WHO. It also controls GAVI, the vaxx-alliance – and is therefore the most influential organization over human health – and death.

These same people, alias Foundations, also own Blackrock – which is why BlackRock and Vanguard are interchangeable or can act as one, if it is to their advantage.

According to Bloomberg, by 2028, the two will own / manage some 20 trillion dollars – about a fifth of the current world GDP.

If joined by State Street, as is often the case, the world’s fourth largest investment manager, you may add another US$ 3 to US$ 4 trillion of managed assets. Sometimes they are joined by Berkshire Hathaway, City Bank, Bank of America, Chase & Co, Goldman Sachs… adding another few trillion of managed assets to their pie.

However, these second or third ranking financial institutions, in turn, are also owned by BlackRock and Vanguard. One might call it an omnipotent vicious circle from which it is almost impossible to escape.

See this one-hour Rumble-video for more details and network of ownership that literally rules the worldhttps://rumble.com/vn7lf5-monopoly-who-owns-the-world-must-see.html .

With that power they can leverage every country in the world, every institution, and every corporation – as they are the largest shareholders of the industrial, military, service and infrastructure investment machine that makes the world turn.

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Please allow just a little detour to Gaza, where the Zionist racist massacre of an entire population has been going on as today for 141 days. Some 30,000 Palestinian have been killed; 70% children and women. Children and women are the prime targets, because children are the next generation and women are the bearer of the next generation – they must be eliminated by the supremacist Zionists.

The horror and inhumanity have no words, cannot be appropriately described with our human vocabulary: Bombs have liquidated an entire family. The mutilated body of a seven-year-old girl, Sidra, is hanging from a wall. Hind, a six-year-old girl, was mercilessly killed by Israeli armed forces, as she was begging for help from an ambulance, surrounded by the cadavers of her killed family. As illustrated by “Hildebrandt”, a Peruvian, renowned non-mainstream news media (23 February 2024).

Tell me, please, are these all-powerful financial conglomerates not powerful enough to stop this massacre at once? They hold entire nations hostage to do their bidding, but they cannot stop Israel, the Zionists behind the State of Israel, from their merciless atrocious killing, murder, massacre of an entire population?

Are they powerful enough to preventing the United States, their Anglosaxon and European puppet governments from halting their money, weapon, and “moral” support of the Zionist onslaught? – Or is their power behind the US veto breaking the UN Security Council’s quest for a Ceasefire in Gaza?

In any case, by not using their power to stop the Zionist war against Palestine, to stop any war, any killing in the world, are they not complicit in the mass-murders in Gaza and around the world by not ending them?

They could. Why are they not doing it?

They are drunk with Power – and as we know, power and money have been derailing humanity for a long time – but now the extent of shame and barbarism has reached a level, where our civilization risks to disappear; and where there is no way to escape – not the traditional ways.

BlackRock / Vanguard are also major shareholders in the secondary and tertiary asset management and banking institutions. So, they control the managed investments of, say, Goldman Sachs, Bank of America, City, Chase, Morgan-Stanley – you name it.

If you invest, for example, in a food conglomerate, like Nestlé, Unilever, PepsiCo, most have no idea that they invest in BlackRock / Vanguard, major shareholders of these food corporations, and by doing so, they also invest in the worldwide military industrial (killing) complex which is too is controlled by BlackRock / Vanguard.

BlackRock / Vanguard / State Street are also the powers behind the power – most often invisible. For example, BlackRock has close links with many Central Banks, especially with the Federal Reserve.

They lend money to the FED – and are a principal adviser to the FED and most likely to other central banks, including they advise on computer systems they use and which connects them.

BlackRock, is by far the largest influencer and donor, or “partner”, as they prefer to call themselves, therefore, also “commander”, of the World Economic Forum (WEF), the entire UN system, its political arm, as well as its sub-agencies – and by proxy, also the World Health Organization (WHO) – and not to forget GAVI, the Vaccination Association, physically located just next door to WHO – and by further extension, Big-Pharma, the pharma industry.

Together with their faithful think-alike executer of WEF’s mandates, Mr. Klaus Schwab, as well as the multibillionaires, such as the Gates, Rockefellers, Soros’ of this world, one can easily deduct – they – BlackRock and Co. – control our lives – health and death.

Through their world-domineering ownership of all that moves, shakes, and produces, they are globalists, eugenists and “green-agenda” eccentrics – pushing the climate change lie – come hell or high water. Costs in money and lives do not matter.

Were these financial monsters behind the covid-plandemic idea? What a question!

Their agenda – eugenist, destruction of current economic structures to rebuild according to this small elite’s criteria – is clearly spelled out by the Club of Rome’s (CoR) “Limits to Growth” (1972), and the follow-on Report “The First Global Revolution” (1991) which claims early on in its text that annihilation of the current system is a MUST, to rebuild, bringing the fundamental changes in favor of the elite – with eugenics and absolute control always in the fore.

Is the CoR at the service of the global financial empire? After all, the same powers are behind both.

Not by coincidence, the Rockefeller Group is the inventor of the Club of Rome, today comfortably seated, tax free and with full diplomatic immunity, in Switzerland.

The fake Covid plandemic is the first building block for this all-destructive mechanism, the “corner stone’ of destruction, so to speak. The lockdowns, the inhuman, totally invalid PCR tests, the fear-mongering – the invented covid-death rates – were very effective in manipulating people, but also in laying the groundwork for the overall annihilation of our society and even civilization, in shifting assets from the bottom to the top – and in abolishing the world economy that carries our civilization.

Once the people were shivering from fear, the deadly “vaxxes” were introduced. Lo and behold, by now, despite ever-louder opposition – about 5.7 billion people – out of the world’s 8 billion (more than 70%) have received at least one jab – and most got 2 or 3 injections.

These poisonous injections are in the human bodies and may most likely react sooner or later. According to Mike Yeadon, former VP and Chief scientist of Pfizer – over the next three to ten years, the death-toll will increase probably drastically, but most people will not link it to the “vaxxes” — either because they have been indoctrinated that deaths are due to long or late covid, or because they suffer from and live in cognitive dissonance.

Big Money to own and control it all, must drastically reduce world population. This is propagated by the WEF,  and as of this day by the CoR (see this https://www.globalresearch.ca/author-limits-growth-promotes-genocide-86-world-population/5818133 .

WEF’s Chairman, Klaus Schwab’s top advisor, Israeli Professor, Yuval Noah Harari, asks openly what to do with the “useless eaters” when their “raison d’être” has ben replaced by Artificial Intelligence (AI). Giving them a base salary for (temporary) survival, getting them hooked on violent video games to prep them for the future, and to let them gradually “disappear”?
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In addition to severe human injuries and death, the vaxxes also reduce male and female fertility, cause miscarriages, highly aggressive and lethal turbo-cancers, and if course, myocardities and sudden deaths.

Overall excess mortality in the west is as high as 20% in some countries. In the UK, where excess deaths are alarming the common public, they have started modifying statistics to erase surplus mortality.

In parallel, mostly funded by the Soros Open Society Foundation, the Woke movement is ravaging the western world, with promotion of sex changes – and the infamous “multi-letter” agenda – LGBTQIA+ = Lesbian, Gay, Bisexual, Transgender, Queer, Intersex, and Asexual. WOW! – This is promoted in schools, in some countries with strict bans of parents’ interference in their children’s, as young as 11 years, wishes for sex-change.

This agenda reduces birth rates further.

Endless wars – create chaos, confusion, desperation and, of course, also deaths.

The Money Masters have succeeded in creating the first building blocks. WHO may soon become the most powerful health (life and death) tyranny on earth, if the infamous Pandemic Treaty and the harshly modified International Health Regulations (IHR) are approved at the upcoming World Health Assembly (WHA) in May 2024.

Knowing who is in possession and control of WHO and the WHA, the world is called upon to exit WHO. Internationally renowned Dr Peter McCullough testified in the European Parliament in Strasbourg, about the social and economic consequences of covid vaxxes, as well as the potentially impending WHO tyranny – concluding with a call on the EU and the US – and the rest of the world to exit WHO.

See this https://www.unitedaustraliaparty.org.au/video/dr-peter-mccullough-testified-in-the-european-parliament-in-strasbourg-chaired-by-christine-anderson/ .

To retake the world, by We the People, leaving BlackRock, Vanguard & Co. behind, exiting the UN system and WHO – would be the next step. Most important, and possibly the only way defeating this money power, is withdrawing from the current societal system and start afresh.

Small communal economies – as far away as possible from any digitization – with a dynamic cooperation among themselves, evolving naturally and on a higher spiritual level than the low vibrating one which is typical for our material world and the present strive for ever more material goods.

“Only when we are divided, can the elite retain its power over us.”

“The Wound is the Place, where the Light enters You”. By the great Sufi poet, Rumi

Their weapons are blackmail and fear.

WE MUST NOT FEAR.

We are the 99%.

We can do it.

And we MUST do it for survival of humanity.

Peter Koenig is a geopolitical analyst and a former Senior Economist at the World Bank and the World Health Organization (WHO), where he worked for over 30 years around the world. He is the author of Implosion – An Economic Thriller about War, Environmental Destruction and Corporate Greed; and  co-author of Cynthia McKinney’s book “When China Sneezes: From the Coronavirus Lockdown to the Global Politico-Economic Crisis” (Clarity Press – November 1, 2020) Peter is a Research Associate of the Centre for Research on Globalization (CRG). He is also a non-resident Senior Fellow of the Chongyang Institute of Renmin University, Beijing.