Category Archives: Economics

Globalists Reveal That The “Great Economic Reset” Is Coming In 2021

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By Brandon Smith

Source: Alt-Market.com

For those not familiar with the phrase “global economic reset”, it is one that has been used ever increasingly by elitists in the central banking world for several years. I first heard it referenced by Christine Lagarde, the head of the IMF at the time, in 2014. The reset is often mentioned in the same breath as ideas like “the New Multilateralism” or “the Multipolar World Order” or “the New World Order”. All of these phrases mean essentially the same thing.

The reset is promoted as a solution to the ongoing economic crisis which was triggered in 2008. This same financial crash is still with us today, but now, after a decade of central bank money printing and debt creation, the bubble is even bigger than it was before. As always, the central bank “cure” is far worse than the disease, and the renewed crash we face today is far more deadly than what would have happened in 2008 if we had simply taken our medicine and refused to prop up weak parts of the economy artificially.

Many alternative economists often wrongly attribute the Fed’s habit of making things worse to “hubris” or “ignorance”. They think the Fed actually wants to save the financial system or “protect the golden goose”, but this is not reality. The truth is, the Fed is not a bumbling maintenance man, the Fed is a saboteur, a suicide bomber that is willing to destroy even itself as an institution in order to explode the US economy and clear the path for a new globally centralized one world system. Hence, the “Global Reset”.

In 2015 in my article ‘The Global Economic Reset Has Begun’, I stated:

“The global reset is not a “response” to the process of collapse we are trapped in today. No, the global reset as implemented by central banks and the BIS/IMF is the cause of the collapse. The collapse is a tool, a flamethrower burning a great hole in the forest to make way for the foundations of the globalist Ziggurat to be built….economic disaster serves the interests of elitists.”

Now in 2020 we see the globalist plan coming to fruition, with the elites revealing what appears to be their intent to launch their reset in 2021. The World Economic Forum officially announced the Great Reset initiative as part of their Covid Action Platform last week, and a summit is scheduled in January 2021 to discuss their plans more openly with the world and the mainstream media.

The WEF also posted a rather bizarre video on the Reset, which consists of a series of images of the world falling apart (and images of factories releasing harmless carbon emission into the air which I suppose is meant to scare us with notions of global warming). The destruction is then “reset” at the push of a button, with everything reversing back to a pristine human-less world of nature and the words “Join Us”.

The reset, according to discussions by the IMF, is basically the next stage in the formation of a one-world economic system and potential global government. This seems to fall in line with the solutions offered during the Event 201 pandemic simulation; a simulation of a coronavirus pandemic that was held by the Bill And Melinda Gates Foundation and the World Economic Forum only two months before the REAL THING happened at the beginning of 2020. Event 201 suggested that one of the top solutions to a pandemic would be the institution of a centralized global economic body that could handle the financial response to the coronavirus.

Is it not convenient that the events of the real coronavirus pandemic fall exactly in line with the Event 201 simulation, as well as directly in line with the global reset plans of the IMF and the World Economic Forum? As they say, let no crisis go to waste, or, as is the motto of the globalists “Order Out Of Chaos”.

With civil unrest about to become a way of life for many parts of the world including the US, and the pandemic set for a resurgence of infections after the “reopening”, creating a rationale for a second wave of lockdowns probably in July, the economy as we know it is being destroyed. The last vestiges of the system, hanging by a thin thread after the crash of 2008, are now being cut.

The goal is rather obvious – Terrify the population with poverty, internal conflicts and a broken supply chain until they lobby the establishment for help.  Then, offer the “solution” of medical tyranny, immunity passports, martial law, a global economic system based on a cashless digital society in which privacy in trade is erased, and then slowly but surely form a faceless “multilateral” global government which answers to no one and does whatever it pleases.

I remember back in 2014 when Christine Lagarde first began talking about the reset. That same year she also made a very strange speech to the National Press Club in which she started rambling gleefully about numerology and the “magic number 7”. Many within the club laughed, as there was apparently an inside joke that the rest of us were not privy to. Well, I would point out that the World Economic Forum meeting on the global reset in 2021 will be held exactly 7 years after Lagarde gave that speech. Just another interesting coincidence I suppose…

The new world order, the global reset, is a long running scheme to centralize power, but in a way that is meant to be sustained for centuries to come. The elites know that it is not enough to achieve global governance by force alone; such an attempt would only lead to resistance and eternal rebellion. No, what the elites want is for the public to ASK, even beg for global governance. If the public is tricked into demanding it as a way to save them from the horrors of global chaos, then they are far less likely to rebel against it later. Problem – reaction – solution.

The pandemic is not going away anytime soon. Everyone should expect that state governments and the federal government will call for renewed lockdowns. With these new lockdowns, the US economy in particular will be finished. With 40 million people losing their jobs during the last lockdowns, many states only partially reopened, and only 13% to 18% of small businesses receiving bailout loans to survive, the next two months are going to be a devastating wake-up call.

The real solution will be for people to form more self reliant communities free of the mainstream economy. The real solution should be decentralization and independence, not centralization and slavery. The globalists will seek to interfere with any effort to break from the program. That said, they can do very little if millions of people enact localization efforts at the same time. If people aren’t reliant on the system, then they cannot be controlled by the system.

The real test will come with the final collapse of the existing economy. When stagflation spikes even harder than it is right now and prices of necessities double or triple yet again, and joblessness skyrockets even further, how many people will clamor for the globalist solution and how many will build their own systems? How many will be bowing in submission and how many will be ready to fight back. It is a question I still don’t have an answer to even after 14 years of analysis on the issue.

What I suspect is that many people will fight back. Not as many as we might hope for, but enough to defend the cause of liberty. Maybe this is overly optimistic, but I believe the globalists are destined to lose this war in the long run.

Another Bank Bailout Under Cover of a Virus

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By Ellen Brown

Source: Web of Debt

Insolvent Wall Street banks have been quietly bailed out again. Banks made risk-free by the government should be public utilities.  

When the Dodd Frank Act was passed in 2010, President Obama triumphantly declared, “No more bailouts!” But what the Act actually said was that the next time the banks failed, they would be subject to “bail ins” – the funds of their creditors, including their large depositors, would be tapped to cover their bad loans.

Then bail-ins were tried in Europe. The results were disastrous.

Many economists in the US and Europe argued that the next time the banks failed, they should be nationalized – taken over by the government as public utilities. But that opportunity was lost when, in September 2019 and again in March 2020, Wall Street banks were quietly bailed out from a liquidity crisis in the repo market that could otherwise have bankrupted them. There was no bail-in of private funds, no heated congressional debate, and no public vote. It was all done unilaterally by unelected bureaucrats at the Federal Reserve.

“The justification of private profit,” said President Franklin Roosevelt in a 1938 address, “is private risk.” Banking has now been made virtually risk-free, backed by the full faith and credit of the United States and its people. The American people are therefore entitled to share in the benefits and the profits. Banking needs to be made a public utility.

The Risky Business of Borrowing Short to Lend Long

Individual banks can go bankrupt from too many bad loans, but the crises that can trigger system-wide collapse are “liquidity crises.” Banks “borrow short to lend long.” They borrow from their depositors to make long-term loans or investments while promising the depositors that they can come for their money “on demand.” To pull off this sleight of hand, when the depositors and the borrowers want the money at the same time, the banks have to borrow from somewhere else. If they can’t find lenders on short notice, or if the price of borrowing suddenly becomes prohibitive, the result is a “liquidity crisis.”

Before 1933, when the government stepped in with FDIC deposit insurance, bank panics and bank runs were common. When people suspected a bank was in trouble, they would all rush to withdraw their funds at once, exposing the fact that the banks did not have the money they purported to have. During the Great Depression, more than one-third of all private US banks were closed due to bank runs.

But President Franklin D. Roosevelt, who took office in 1933, was skeptical about insuring bank deposits. He warned, “We do not wish to make the United States Government liable for the mistakes and errors of individual banks, and put a premium on unsound banking in the future.” The government had a viable public alternative, a US postal banking system established in 1911. Postal banks became especially popular during the Depression, because they were backed by the US government. But Roosevelt was pressured into signing the 1933 Banking Act, creating the Federal Deposit Insurance Corporation that insured private banks with public funds.

Congress, however, was unwilling to insure more than $5,000 per depositor (about $100,000 today), a sum raised temporarily in 2008 and permanently in 2010 to $250,000. That meant large institutional investors (pension funds, mutual funds, hedge funds, sovereign wealth funds) had nowhere to park the millions of dollars they held between investments. They wanted a place to put their funds that was secure, provided them with some interest, and was liquid like a traditional deposit account, allowing quick withdrawal. They wanted the same “ironclad moneyback guarantee” provided by FDIC deposit insurance, with the ability to get their money back on demand.

It was largely in response to that need that the private repo market evolved. Repo trades, although technically “sales and repurchases” of collateral, are in effect secured short-term loans, usually repayable the next day or in two weeks. Repo replaces the security of deposit insurance with the security of highly liquid collateral, typically Treasury debt or mortgage-backed securities. Although the repo market evolved chiefly to satisfy the needs of the large institutional investors that were its chief lenders, it also served the interests of the banks, since it allowed them to get around the capital requirements imposed by regulators on the conventional banking system. Borrowing from the repo market became so popular that by 2008, it provided half the credit in the country. By 2020, this massive market had a turnover of $1 trillion a day.

Before 2008, banks also borrowed from each other in the fed funds market, allowing the Fed to manipulate interest rates by controlling the fed funds rate. But after 2008, banks were afraid to lend to each other for fear the borrowing banks might be insolvent and might not pay the loans back. Instead the lenders turned to the repo market, where loans were supposedly secured with collateral. The problem was that the collateral could be “rehypothecated,” or used for several loans at once; and by September 2019, the borrower side of the repo market had been taken over by hedge funds, which were notorious for risky rehypothecation. Many large institutional lenders therefore pulled out, driving the cost of borrowing at one point from 2% to 10%.

Rather than letting the banks fail and forcing a bail-in of private creditors’ funds, the Fed quietly stepped in and saved the banks by becoming the “repo lender of last resort.” But the liquidity crunch did not abate, and by March the Fed was making $1 trillion per day available in overnight loans. The central bank was backstopping the whole repo market, including the hedge funds, an untenable situation.

In March 2020, under cover of a national crisis, the Fed therefore flung the doors open to its discount window, where only banks could borrow. Previously, banks were reluctant to apply there because the interest was at a penalty rate and carried a stigma, signaling that the bank must be in distress. But that concern was eliminated when the Fed announced in a March 15 press release that the interest rate had been dropped to 0.25% (virtually zero). The reserve requirement was also eliminated, the capital requirement was relaxed, and all banks in good standing were offered loans of up to 90 days, “renewable on a daily basis.” The loans could be continually rolled over. And while the alleged intent was “to help meet demands for credit from households and businesses at this time,” no strings were attached to this interest-free money. There was no obligation to lend to small businesses, reduce credit card rates, or write down underwater mortgages.

The Fed’s scheme worked, and demand for repo loans plummeted. Even J.P. Morgan Chase, the largest bank in the country, has acknowledged borrowing at the Fed’s discount window for super cheap loans. But the windfall to Wall Street has not been shared with the public. In Canada, some of the biggest banks slashed their credit card interest rates in half, from 21 percent to 11 percent, to help relieve borrowers during the COVID-19 crisis. But US banks have felt no such compunction. US credit card rates dropped in April only by half a percentage point, to 20.15%. The giant Wall Street banks continue to favor their largest clients, doling out CARES Act benefits to them first, emptying the trough before many smaller businesses could drink there.

In 1969, Prime Minister Indira Gandhi nationalized 14 of India’s largest banks, not because they were bankrupt (the usual justification today) but to ensure that credit would be allocated according to planned priorities, including getting banks into rural areas and making cheap financing available to Indian farmers.  Congress could do the same today, but the odds are it won’t. As Sen. Dick Durbin said in 2009, “the banks … are still the most powerful lobby on Capitol Hill. And they frankly own the place.”

Time for the States to Step In

State and local governments could make cheap credit available to their communities, but today they too are second class citizens when it comes to borrowing. Unlike the banks, which can borrow virtually interest-free with no strings attached, states can sell their bonds to the Fed only at market rates of 3% or 4% or more plus a penalty. Why are elected local governments, which are required to serve the public, penalized for shortfalls in their budgets caused by a mandatory shutdown, when private banks that serve private stockholders are not?

States can borrow from the federal unemployment trust fund, as California just did for $348 million, but these loans too must be paid back with interest, and they must be used to cover soaring claims for state unemployment benefits. States remain desperately short of funds to repair holes in their budgets from lost revenues and increased costs due to the shutdown.

States are excellent credit risks – far better than banks would be without the life-support of the federal government. States have a tax base, they aren’t going anywhere, they are legally required to pay their bills, and they are forbidden to file for bankruptcy. Banks are considered better credit risks than states only because their deposits are insured by the federal government and they are gifted with routine bailouts from the Fed, without which they would have collapsed decades ago.

State and local governments with a mandate to serve the public interest deserve to be treated as well as private Wall Street banks that have repeatedly been found guilty of frauds on the public. How can states get parity with the banks? If Congress won’t address that need, states can borrow interest-free at the Fed’s discount window by forming their own publicly-owned banks. For more on that possibility, see my earlier article here.

As Buckminster Fuller said, “You never change things by fighting the existing reality. To change something, create a new model that makes the old model obsolete.” Post-COVID-19, the world will need to explore new models; and publicly-owned banks should be high on the list.

Mass Distraction And Fake “V-Shaped” Recovery Provide Cover For The Fed Induced Crash

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By Brandon Smith

Source: Alt-Market.com

This article, originally titled ‘The Fed Just Got Cover For The Collapse Of The US Economy’, was written by Brandon Smith and first published at Birch Gold Group

The scapegoating has already started. In almost every sector of the economy that is collapsing, the claim is that “everything was fine until the pandemic happened”. From tumbling web news platforms to small businesses to major corporations, the coronavirus outbreak and the national riots will become the excuse for failure. The establishment will try to rewrite history and many people will go along with it because the truth makes them look bad.

And what is the truth? The truth is that the U.S. economy – and in some ways, the global economy – was already collapsing. The system’s dependency on ultra-low interest rates and central bank stimulus created perhaps the largest debt bubble in history – the Everything Bubble. And that bubble began imploding at the end of 2018, triggered primarily by the Federal Reserve raising rates and dumping its balance sheet into economic weakness, just like it did at the start of the Great Depression. Fed Chair Jerome Powell knew what would happen if this policy was initiated; he even warned about it in the minutes of the October 2012 Federal Open Market Committee, and yet once he became the head of the central bank, he did it anyway.

For a year leading up to the pandemic, the Fed was struggling to maintain and suppress a repo market liquidity crisis. National debt, corporate debt and consumer debt were at all-time highs. Companies were desperate for new stimulus, and they were getting crumbs from the Fed, rather than the tens of trillions that they needed just to stay afloat. The central bank had sabotaged the economy, but they had to keep it in a state of living death until they had a perfect cover event for the collapse. The pandemic and inevitable civil unrest do the job nicely.

What many people do not understand is that the Fed does not care about the economy. In fact, every Fed action since its inception in 1913 has led to the downfall of the U.S. The Fed is not a maintenance man trying to stave off collapse; the Fed is a suicide bomber willing to destroy everything including itself in order to serve a greater ideology.

Total global centralization is the goal, and every new disaster is exploited to this end by the establishment. “Order out of chaos” is the motto of the global elites; in other words, in every crisis there is “opportunity”. This crisis has been no different. Suggested solutions have ranged from the creation of a cashless society operating on a digital currency system, to permanent lockdowns in the name of stopping “global warming”, to a surveillance state and medical tyranny utilizing 24/7 tracking of citizens in order to “stop the spread of the virus”. But how does the establishment plan to get people to go along with such freedom-crushing policies?

The pandemic by itself is not enough. The George Floyd riots may be a motivator, but they might fizzle out over time. The real catalyst, as I have said for many years now, will be an ongoing economic crash. This crash, engineered in 2008, has been a long time coming. Everything that is happening today is an extension of what happened over a decade ago. That said, the current phase was set in motion in 2018, as noted above.

The virus and the lockdowns solidified the crash, and while some people including Trump are calling for a V-shaped recovery, this is not going to happen.  Perhaps Trump is referring to stock markets artificially inflated by the Fed stimulus backstop?  Is anyone gullible enough to believe the stock market represents the real economy?  Because today’s jobs report from the BLS, despite all the hype, does not suggest V-shaped recovery to me.  The US lost 40 million jobs in the span of 6 weeks.  The BLS reports a gain of 2.5 million jobs in May as the country “reopened”.  So, we are still down nearly 38 million jobs in the past couple months yet the BLS stats are being called “stunning” and a “sign of recovery”?

The assumption being made here I think is that job gains will now be constant each month from now on.  I think not.  I think the jobs that were gained in May are the peak, and every jobs report after today will disappoint.  Here’s why…

The latest Fed models predict a GDP plunge of 52.8%, and the manner in which the Fed calculates GDP is actually rigged to the upside. It is difficult to predict the REAL fall in data, but we know it will likely be larger than 52%. Keep in mind that this crash is in the 2nd quarter, while the Fed pumped trillions into the system. What exactly did this money printing buy? Well, stock markets stabilized, but the rest of the economy didn’t, and stock market optimism isn’t going to last much longer either is there are renewed lockdowns.

The primary reason we now face a second Great Depression is because the small business sector has been destroyed. Small businesses are vital to the U.S. economy, representing around 50% of the job market. The closures resulted in around 40 million job losses in the past two months. Add that to the 95 million Americans that have been out of work but not counted by the BLS as unemployed – as well as the 11 million people that are counted – and you are looking at nearly 150 million working age people not generating an income.

The latest BLS jobs gains and the way they are being hyped by the media are suspicious to me.  It seems as if the establishment is trying to convince the public that the pandemic will have no affect on the economy and that their jobs will simply be waiting for them after every new shutdown (as long as they adhere to the rules and restriction set up by state and federal governments).

But it’s only going to get worse from here on…

The public doesn’t realize it yet, but many of the businesses that shut down over the past couple months are not coming back. Sure, a lot of them will try to reopen, and there will be a last gasp of activity during the next month or two, but the levels of debt attached to these ventures was already high before the pandemic hit. The recent small business bailouts seemed as if they were designed to give people false hope. According to figures out of JP Morgan, of the 300,000 clients that applied for the small business aid, only 18,000 actually received any. And, of that 18,000, many were larger corporation, not small businesses.

Business sectors most affected include retail and service, which crashed a record 16.4% overall in April. Food service lost approximately 30% of sales. Electronics and appliances lost 60%. Clothing plunged 78%. Auto sales fell 33% in May, and the expected rebound after the reopening has been disappointing.

The businesses most likely to die first are those that had large debt obligations before the lockdowns, as well as those that received no bailout money. Even though companies like General Electric, Verizon, IBM and Tesla all have massive debt issues, they may be kept alive by government bailouts, at least for a time. Small businesses, on the other hand, appear to be slated for destruction.

In particular, I suspect most restaurants besides major chains will go into bankruptcy. Boutique stores and clothing outlets will run out of money fast. Movie theater chains will collapse. Car rental outlets will collapse. Tourism businesses will close en masse and tourism towns will suffer profit losses despite the “reopening” in some states. Larger companies, like airlines, will continue to decline, and they will have to diversify into other areas, such as shipping, in order to survive. The auto industry is not coming back any time soon.

In the case of restaurants, the social distancing requirements reduce the number of customers that they can seat at any given time. Restaurants were already suffering major declines before the pandemic, and while take-out venues might have seen an uptick because of the lockdowns, this will not last as people begin to run out of cash and start cooking at home.

The same goes for small boutique stores, which rely on consumers with expendable cash flows. Such consumers no longer exist, and notions of “extra cash” will disappear along with waning government checks. As for tourism, I think there will be some travel, as lockdown restrictions are partially lifted. Many people in the cities will try to get away for a week or two just to escape and feel normal for a little while. However, I also think mainstream economists are underestimating the number of people who will refuse to travel because of concerns about coming in contact with the coronavirus. Just as retail refuses to rebound, so will tourism profits.

Air travel is unlikely to improve for the same reasons. Social distancing makes airplane flights a losing investment as passenger capacity is reduced. New car sales will remain stagnant because people are traveling less, and the used car market is being stocked with product as average people sell off vehicles to get extra cash to make ends meet.

All of these factors result in long-term job losses and debt defaults for small businesses as well as some larger companies. Which means much higher poverty rates and further dependency on government welfare programs.

The real test for the public will come when lockdowns return. I realize that there is a bit of denial in the population when it comes to this idea. I see many people operating on the assumption that the “reopening” is a long-term situation. I assure you, it is not. As I have noted in many previous articles, the establishment intends to use what I call “wave theory”, or a cycle of shutdowns and openings over the span of a year or longer. There WILL be new lockdowns, if not in the name of a resurgence in COVID infections, it will be in the name of stopping the national riots.

The response from the American people will be critical here. Will we support further lockdowns or martial law, even though the measures would harm us economically? Or will the public resist? Will the political left embrace a second lockdown in the face of further infection spikes? Will conservatives embrace lockdowns in the face of leftist protests and riots? Both sides of the political spectrum are being tempted with the use of a totalitarian government response in order to ensure their personal “safety”.

People must be made to understand the reality of our situation: the economy has already been undermined and this threat is far greater than either the virus or the riots. This is the danger that is being hidden by the pandemic and civil unrest distractions, and it is a threat that the government has no means or intention of saving us from. We must save ourselves, and doing that requires preparation and acceptance that the world is changed.

Four Reasons Civilization Won’t Decline: It Will Collapse

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By Craig Collins

Source: CounterPunch

As modern civilization’s shelf life expires, more scholars have turned their attention to the decline and fall of civilizations past.  Their studies have generated rival explanations of why societies collapse and civilizations die.  Meanwhile, a lucrative market has emerged for post-apocalyptic novels, movies, TV shows, and video games for those who enjoy the vicarious thrill of dark, futuristic disaster and mayhem from the comfort of their cozy couch.  Of course, surviving the real thing will become a much different story.

The latent fear that civilization is living on borrowed time has also spawned a counter-market of “happily ever after” optimists who desperately cling to their belief in endless progress.  Popular Pollyannas, like cognitive psychologist Steven Pinker, provide this anxious crowd with soothing assurances that the titanic ship of progress is unsinkable.  Pinker’s publications have made him the high priest of progress.[1] While civilization circles the drain, his ardent audiences find comfort in lectures and books brimming with cherry-picked evidence to prove that life is better than ever, and will surely keep improving.  Yet, when questioned, Pinker himself admits, “It’s incorrect to extrapolate that the fact that we’ve made progress is a prediction that we’re guaranteed to make progress.”[2]

Pinker’s rosy statistics cleverly disguise the fatal flaw in his argument.  The progress of the past was built by sacrificing the future—and the future is upon us.  All the happy facts he cites about living standards, life expectancy, and economic growth are the product of an industrial civilization that has pillaged and polluted the planet to produce temporary progress for a growing middle class—and enormous profits and power for a tiny elite.

Not everyone who understands that progress has been purchased at the expense of the future thinks that civilization’s collapse will be abrupt and bitter.  Scholars of ancient societies, like Jared Diamond and John Michael Greer, accurately point out that abrupt collapse is a rare historical phenomenon.  In The Long Descent, Greer assures his readers that, “The same pattern repeats over and over again in history.  Gradual disintegration, not sudden catastrophic collapse, is the way civilizations end.”  Greer estimates that it takes, on average, about 250 years for civilizations to decline and fall, and he finds no reason why modern civilization shouldn’t follow this “usual timeline.”[3]

But Greer’s assumption is built on shaky ground because industrial civilization differs from all past civilizations in four crucial ways.  And every one of them may accelerate and intensify the coming collapse while increasing the difficulty of recovery.

Difference #1:  Unlike all previous civilizations, modern industrial civilization is powered by an exceptionally rich, NON-renewable, and irreplaceable energy source—fossil fuels.  This unique energy base predisposes industrial civilization to a short, meteoric lifespan of unprecedented boom and drastic bust.  Megacities, globalized production, industrial agriculture, and a human population approaching 8 billion are all historically exceptional—and unsustainable—without fossil fuels.  Today, the rich easily exploited oilfields and coalmines of the past are mostly depleted.  And, while there are energy alternatives, there are no realistic replacements that can deliver the abundant net energy fossil fuels once provided.[4]  Our complex, expansive, high-speed civilization owes its brief lifespan to this one-time, rapidly dwindling energy bonanza.

Difference #2:  Unlike past civilizations, the economy of industrial society is capitalist.  Production for profit is its prime directive and driving force.  The unprecedented surplus energy supplied by fossil fuels has generated exceptional growth and enormous profits over the past two centuries.  But in the coming decades, these historic windfalls of abundant energy, constant growth, and rising profits will vanish.

However, unless it is abolished, capitalism will not disappear when boom turns to bust.  Instead, energy-starved, growth-less capitalism will turn catabolic.  Catabolismrefers to the condition whereby a living thing devours itself.  As profitable sources of production dry up, capitalism will be compelled to turn a profit by consuming the social assets it once created.  By cannibalizing itself, the profit motive will exacerbate industrial society’s dramatic decline.

Catabolic capitalism will profit from scarcity, crisis, disaster, and conflict.  Warfare, resource hoarding, ecological disaster, and pandemic diseases will become the big profit makers.  Capital will flow toward lucrative ventures like cybercrime, predatory lending, and financial fraud; bribery, corruption, and racketeering; weapons, drugs, and human trafficking.  Once disintegration and destruction become the primary source of profit, catabolic capitalism will rampage down the road to ruin, gorging itself on one self-inflicted disaster after another.[5]

Difference #3:  Unlike past societies, industrial civilization isn’t Roman, Chinese, Egyptian, Aztec, or Mayan.  Modern civilization is HUMAN, PLANETARY, and ECOCIDAL.  Pre-industrial civilizations depleted their topsoil, felled their forests, and polluted their rivers.  But the harm was far more temporary and geographically limited. Once market incentives harnessed the colossal power of fossil fuels to exploit nature, the dire results were planetary.  Two centuries of fossil fuel combustion have saturated the biosphere with climate-altering carbon that will continue wreaking havoc for generations to come.  The damage to Earth’s living systems—the circulation and chemical composition of the atmosphere and the ocean; the stability of the hydrological and biogeochemical cycles; and the biodiversity of the entire planet—is essentially permanent.

Humans have become the most invasive species ever known.  Although we are a mere .01 percent of the planet’s biomass, our domesticated crops and livestock dominate life on Earth.  In terms of total biomass, 96 percent of all the mammals on Earth are livestock; only 4 percent are wild mammals.  Seventy percent of all birds are domesticated poultry, only 30 percent are wild.  About half the Earth’s wild animals are thought to have been lost in just the last 50 years.[6]  Scientists estimate that half of all remaining species will be extinct by the end of the century.[7] There are no more unspoiled ecosystems or new frontiers where people can escape the damage they’ve caused and recover from collapse.

Difference #4:  Human civilization’s collective capacity to confront its mounting crises is crippled by a fragmented political system of antagonistic nations ruled by corrupt elites who care more about power and wealth than people and the planet.  Humanity faces a perfect storm of converging global calamities.  Intersecting tribulations like climate chaos, rampant extinction, food and freshwater scarcity, poverty, extreme inequality, and the rise of global pandemics are rapidly eroding the foundations of modern life.

Yet, this fractious and fractured political system makes organizing and mounting a cooperative response nearly impossible.  And, the more catabolic industrial capitalism becomes, the greater the danger that hostile rulers will fan the flames of nationalism and go to war over scarce resources.  Of course, warfare is not new.  But modern warfare is so devastating, destructive, and toxic that little would remain in its aftermath.  This would be the final nail in civilization’s coffin.

Rising From the Ruins?

How people respond to the collapse of industrial civilization will determine how bad things get and what will replace it. The challenges are monumental.  They will force us to question our identities, our values, and our loyalties like no other experience in our history.  Who are we?  Are we, first and foremost, human beings struggling to raise our families, strengthen our communities, and coexist with the other inhabitants of Earth?  Or do our primary loyalties belong to our nation, our culture, our race, our ideology, or our religion?  Can we put the survival of our species and our planet first, or will we allow ourselves to become hopelessly divided along national, cultural, racial, religious, or party lines?

The eventual outcome of this great implosion is up for grabs.  Will we overcome denial and despair; kick our addiction to petroleum; and pull together to break the grip of corporate power over our lives?  Can we foster genuine democracy, harness renewable energy, reweave our communities, re-learn forgotten skills, and heal the wounds we’ve inflicted on the Earth?  Or will fear and prejudice drive us into hostile camps, fighting over the dwindling resources of a degraded planet?  The stakes could not be higher.

Notes.

[1] His books include: The Better Angels of Our Nature and Enlightenment Now: The Case for Reason, Science, Humanism, and Progress.

[2] King, Darryn. “Steven Pinker on the Past, Present, and Future of Optimism” (OneZero, Jan 10, 2019) https://onezero.medium.com/steven-pinker-on-the-past-present-and-future-of-optimism-f362398c604b

[3] Greer, John Michael.  The Long Descent (New Society Publishers, 2008): 29.

[4] Heinberg, Richard. The End Of Growth. (New Society, 2011): 117.

[5] For more on catabolic capitalism see: Collins, Craig. “Catabolism: Capitalism’s Frightening Future,”CounterPunch (Nov. 1, 2018). https://www.counterpunch.org/2018/11/01/catabolism-capitalisms-frightening-future/

[6] Carrington, Damian. “New Study: Humans Just 0.01% Of All Life But Have Destroyed 83% Of Wild Mammals,” The Guardian (May 21, 2018). https://www.theguardian.com/environment/2018/may/21/human-race-just-001-of-all-life-but-has-destroyed-over-80-of-wild-mammals-study

[7] Ceballos, Ehrlich, Barnosky, Garcia, Pringle & Palmer. “Accelerated Modern Human-Induced Species Losses: Entering The 6th Mass Extinction,” Science Advances. (June 19, 2015). http://advances.sciencemag.org/content/1/5/e1400253

We’re in the Thick of It Now – What Happens Next?

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By Michael Krieger

Source: Liberty Blitzkrieg

It’s with an extremely heavy heart that I sit down to write today’s post. Although widespread civil unrest was easy to predict, it doesn’t make the situation any less sad and dangerous. We’re in the thick of it now, and how we respond will likely determine the direction of the country for decades to come.

If the combination of peaceful protesting, looting and violence witnessed across American cities over the past few days completely caught you off guard, you’re likely to come to the worst possible conclusion about what to do next. The knee-jerk response I’m already seeing from many is to crush the dissent by all means necessary, but that’s exactly how you give the imperial state and oligarchy more power. Power it will never relinquish.

The pressure cooker situation that erupted over the weekend has been building for five decades, but really accelerated over the past twenty years. After every crisis of the 21st century there’s been this “do whatever it takes mentality,” which resulted in more wealth and power for the national security state and oligarchy, and less resources, opportunities and civil liberties for the many. If anything, it’s surprising it took so long to get here, partly a testament to how skilled a salesman for the power structure Obama was.

The covid-19 pandemic, related societal lockdown and another round of in your face economic looting by Congress and the Federal Reserve merely served as an accelerant, and the only thing missing was some sort of catalyst combined with warmer weather. Now that the eruption has occurred, I hope cooler heads can prevail on all sides.

On the one hand, you can’t pillage the public so blatantly and consistently for decades while telling them voting will change things and not expect violence once people realize it doesn’t. On the other hand, street violence plays perfectly into the hands of those who would take the current moment and use it to advocate for a further loss of civil liberties, more internal militarization, and the emergence of an overt domestic police state that’s been itching to fully manifest since 9/11.

It’s my view we need to take the current moment and admit the unrest is a symptom of a deeply entrenched and corrupt bipartisan imperial oligarchy that cares only about its own wealth and power. If people of goodwill across the ideological spectrum don’t take a step back and point out who the real looters are, nothing’s going to improve and we’ll put another bandaid on a systemic cancer as we continue our longstanding march toward less freedom and more authoritarianism.

While we aren’t going to solve everything at once, something should be done as soon as possible to at least partially address current anger and frustration.

Clearly there’s a major problem when it comes to policing in America, particularly in poor inner-city communities. Let’s start by ending qualified immunity.

Qualified immunity, created by the Supreme Court in the 1970s, shields police and other government officials from liability in civil rights lawsuits when the illegality of their actions was not “clearly established” at the time of the offense.

Attorneys representing the families of Floyd, Ahmaud Arbery, and Breonna Taylor called for policing reforms—including rolling back qualified immunity—at a press conference today…

While it may seem like George Floyd’s right to not be choked to death by a police officer would be rather obvious, the fuzzy phrase “clearly established” has evolved over time to become a pedantic and unforgiving standard. Plaintiffs are often required to go fishing for cases that match their exact circumstances, lest their lawsuit get tossed. Last year, a 9th Circuit Court of Appeals panel granted qualified immunity to an officer who, without warning, shot a 15-year-old holding an airsoft gun. 

Ending qualified immunity may seem like a small thing, but it’s an important step toward adding some accountability to those in positions of power. As it stands, power at all levels in our society largely operates above the law. This applies to politicians, national security state operatives, CEOs, Wall Street, the police, and of course, Jeffrey Epstein. Those in positions to do the most damage to society are simultaneously most immune from the consequences of their actions. This is a core systemic problem in our country, so let’s take a small step and start with qualified immunity for police officers while the opportunity exists. From there we can turn our attention to the bigger fish.

I understand my message will likely fall on deaf ears, and I’m used to things not going the way I want them to. I have no idea where society will go from here, but I know we’re at a key inflection point in our nation’s history. We can begin to turn this thing around, or we can go totally off the deep end. Try to be as creative, constructive and conscious as possible during these trying times.

That Change You Requested…?

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By James Howard Kunstler

Source: Kunstler.com

All the previous incidents of white cops killing blacks were just too ambiguous to seal the deal. Michael Brown in Ferguson, Missouri (a murky business); Tamir Rice in Cleveland (waving the BB gun that looked like a .45 automatic); Trayvon Martin (his killer George Zimmerman was not a cop and was not “white”); Eric Garner, Staten Island (black policewoman sergeant on the scene didn’t stop it); Philandro Castile, Minneapolis, (the cop was Hispanic and the vic had a gun). Even the recent February killing of jogger Ahmaud Arbery in Brunswick, Georgia, had some sketchy elements (did Arbery try to seize the shotgun?) — YouTube has scrubbed the video (?) — and then it took months for the two white suspects (not cops) to be arrested.

The George Floyd killing had none of those weaknesses. Plus, the video presented a pretty much universal image of oppression: a man with his knee on another man’s neck. Didn’t that say it all?  You didn’t need a Bob Dylan song to explain it. The Minneapolis police dithered for four days before charging policeman Derek Chauvin with Murder 3 (unpremeditated, but with reckless disregard for human life). The three other cops on the scene who stupidly stood by doing nothing have yet to be charged. Cut it, print it, and cue the mobs.

The nation was already reeling from the weird twelve-week Covid-19 lockdown of everyday life and the economic havoc it brought to careers, businesses, and incomes. In Minnesota, the stay-at-home order was just lifted on May 17, but bars and restaurants were still closed until June. Memorial Day, May 25, was one of the first really balmy days of mid-spring, 78 degrees. People were out-and-about, perhaps even feeling frisky after weeks of dreary seclusion. So, once the video of George Floyd’s death got out, the script was set: take it to the streets!

Few Americans were unsympathetic to the protest marches that followed. Remorse, censure, and tears flowed from every official portal, from the mouth and eyes of every political figure in the land. The tableau of Officer Chauvin’s knee on Mr. Floyd’s neck was readymade for statuary. Indeed, there are probably dozens of statues extant in the world of just such a scene expressing one people’s oppression over another. And yet the public sentiments early-on after the George Floyd killing had a stale, ceremonial flavor: The people demand change! End systemic racism! No justice, no peace! How many times have we seen this movie?

What is changing — and suddenly — is that now it’s not just black people who struggle to thrive in the USA, but everybody else of any ethnic group who is not a hedge fund veep, an employee of BlackRock Financial, or a K-Street lobbyist — and even those privileged characters may find themselves in reduced circumstances before long. The prospects of young adults look grimmest of all. They face an economy so disordered that hardly anyone can find something to do that pays enough to support the basics of life, on top of being swindled by the false promises of higher education and the money-lending racket that animates it.

So, it’s not surprising that, when night falls, the demons come out. Things get smashed up and burned down. And all that after being cooped up for weeks on end in the name of an illness that mostly kills people in nursing homes. Ugly as the ANTIFA movement is, it’s exactly what you get when young people realize their future has been stolen from them. Or, more literally, when they are idle and broke and see fabulous wealth all around them in the banks’ glass skyscrapers, and the car showrooms, and the pageants of celebrity fame and fortune on the boob tube. They are extras in a new movie called The Fourth Turning Meets the Long Emergency but they may not know it.

Hungry for change? You won’t have to wait long. This society may be unrecognizable in a few months. For one thing, there’s a good chance that the current violence in the streets won’t blow over as it has before. There hasn’t been such sudden, massive unemployment before, not even in the Great Depression — and we’re not even the same country that went through that rough episode. Just about every arrangement in contemporary life is on-the-rocks one way or another. Big business, small business, show business… it’s all cratering. The great big secret behind all that is not that capitalism failed; it’s that the capital in capitalism isn’t really there anymore, at least not in the amounts that mere appearances like stock valuations suggest. We squandered it, and now our institutions are straining mightily to pretend that “printing” money is the same as capital. (It’s just more debt.) Note, the stock markets are up this morning at the open! Go figure….

Change? We’re getting it good and hard, and not at a rate we were prepared for. It’s hugely disorienting. It produces friction, heat, and light, which easily becomes violence. There’s, for sure, plenty we can do to make new arrangements for American life without becoming communists or Nazis, but a lot of activities have to fail before we see how that could work. The overburden of obsolete complexity is crushing us, like Derek Chauvin’s knee on George Floyd’s neck. They were both, in their way, common men, caught in the maelstrom of metaphor. That proverbial long, hot summer we’ve heard about for so long…? It’s here.

Revolution Is Inevitable and Necessary

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By Jason Holland

Source: Dissident Voice

None are so hopelessly enslaved, as those who falsely believe they are free. The truth has been kept from the depth of their minds by masters who rule them with lies. They feed them on falsehoods till wrong looks like right in their eyes.

— Johann Wolfgang von Goethe, Bk. II, Ch. 5; source: Die Wahlverwandtschaften, Hamburger Ausgabe, Bd. 6 (Romane und Novellen I), dtv Verlag, München, 1982, p. 397 (II.5).

I keep plotting a revolution no one else seems to be interested in having. So be it. I’ll have my solitary revolution. There will be no pink hats, guillotines, or marches, just me and a bitter jaded middle finger saluting towards the firmaments in utter rejection of most what this society represents. Although I hold no lasting contempt for anyone in this society because I understand we all have fallen into cultural traps and have done things that we believed we had to do so that we could be accepted, or just to be allowed to sleep indoors somewhere and be fed; we’ve had to commodify and sell out pieces of ourselves to serve the desires of those in a system of power who sanction and control the flow of money backed by military forces and institutions of incarceration, and this way of being was set into motion a long time ago, but it doesn’t have to continue if that’s not what we really desire, but for right now it’s close to all we know.

So, it does seem a revolution of sorts is inevitable due to inequality reaching grotesque heights of avarice where there is no longer any excuse for the wealthy to hide behind in order to explain why it is they have so much and others have so little. However, this just emphasizes the point that this population is largely not wise enough yet to create a revolution worth having, because a more enlightened culture would have taken a stand a long time ago before things became an emergency. Every second we acquiesce to power and don’t push for something radically better we compound an already grim situation. Globally there seems to be a majority who don’t understand what it is to be free, they merely fight to be better treated servants. So it’s highly likely their coming revolution will be a flailing inchoate attempt at something marginally better than what is here now and won’t set out to correct much, if any, of the underlying structural problems.

Consequently, the odds are the revolution we’ll end up with will circle directly back to where we are now or worse in no time at all. But my critiques and frustrations are mine, not a concern for the coming revolution. I must remember it’s their revolution, not mine. I’m not invited to theirs — well, that’s not entirely true.  I just have to ignore most of what I believe to be true, then I’m invited. As things are, I have only a single pathetic pity party scheduled as an event to prove my revolution ever existed, but I should be appreciative of what I have and cease bemoaning what I do not.

So this is where I will make my stand. The beginning and likely end of my revolution of one. In reality my revolution is simply a rough translation through the English language describing my light of truth within, which I’ve gone to great pains to keep safe, dry, and burning from a clean source of fuel. Probably all done in futility except to selfishly inoculate my own mind from the lurking darkness of the culture cave; still, a lingering desire remains to light a path out for others to follow who have become stuck watching dark Platonic shadows flicker across the walls.

With that said, here’s the path I’m lighting with argumentation and I believe it to be a solid one.  We, as in the we consisting of the global middle/lower classes of the entire planet, aka the 99%, are not a free people now nor have ever truly been free while living in the bounds of a social hierarchy. While many a winsome word has been applied to parchment declaring this or that people free, unfortunately soon thereafter the founding document is handed over to record keepers to energize the narratives of posterity while the same ole domination and ownership-driven society meters out the same ole grind. The reward and punishment operant conditioning culture is uniformly applied and chosen specifically to keep people compliant, reactive, and rutted into perpetual business as usual subservience to authoritative forces.

Constitutions supply grandiose ideas which are undermined by underlying conditional legislature where the original words are made into feckless futile notions that allows the ruling authority to do all the draconian bullshit they’ve always done with prettier sounding words. The powers that be couch authoritarian ideas in language that sometimes sounds reasonable on the surface but ultimately leads people to a deleterious state of believing they are free when they are nothing close to any working definition of freedom. Freedom is a condition which is now only possible within our own minds, but our physical bodies are fodder for the whims of a class of people who clearly believe themselves superior to just about everyone else.

Those causing the most damage are simply playing out a cultural role that’s a legacy of deceit passed down from one generation to the next, and each falling prey to traps of chasing after things; endless shiny carrots on shiny sticks. And not just chasing, but lusting, demanding, an obsessive hedonistic pursuit wanting total ego domination at any macabre cost. Pure obsession with the chase. While irony sits on many of their own bookshelves as Melville’s whale tale of wisdom lies fallow and ignored serving only as bookcase filler to give guests the impression they’re well read.

The ego-driven mind thinks primarily in the language of temporal imperatives. Short term must do this, must do that kind of thinking where all thought is disseminated through a lens of self importance with agendas to accomplish to validate that self importance. And if it thinks itself important enough it will eventually see itself as messianic. After they have assumed role of savior it’s just logically congruent that the ruling class allocate all the resources they desire for themselves so they can help all the people they will eventually save, and they need deep pockets to be the inspiration for the entire world.

Over time the ruling class creates rules and cultural dogmas that they claim are for the good of the people, but oddly enough their beliefs always result in making them richer and giving them more power. What an odd purported symbiosis they have dreamed up. The surest sign of being under an authoritarian power is when they make it really difficult to live independent of them. They demand you be hooked up to their electrical grid, pay taxes to live on the land, and hooked into the public water system. Total forced dependency on their system and it is barely noticed yet subtly removing choice and creating an artificial cage. Creating dependency is the best way to control people, and tyranny is then accepted under the umbrella of the common good, so the messianic ones can provide shelter from the storm while, of course, the common person sacrifices most of their free will in the process in a Faustian bargain which is the default role we are thrust into in this world of imperial forces.

Social hierarchies hold their grip on power in increasingly sophisticated ways. They’ve mostly advanced past public executions to keep people in line. They’ve learned it’s far more effective to manipulate minds into believing all are equals and free, and stoke the fear response towards something external that threatens that equality and freedom. It’s become understood by hierarchy that if the ruling power is perceived as the threat they are far more likely to be ousted from that power, so the engines of power must diffuse the blame of their actions lest they be held responsible for the tyranny they impose.

So semi-plausible sounding fears are brought to the forefront so they can provide you with adequate safety, which gives them the power to deprive you of the liberty they are telling you they are protecting, since you know they care so much about you. The gas-lighting of the masses creates reactionary conditioning that puts people in a state where they no longer trust their own mind and become prone to believing all the fears power claims are real. And fear is then used as a prod to move the human animal in a chosen direction power wishes.

Revolution of a real kind, one where our relationship to power radically changes, will be a series of progressions in pulling our minds out of this culture trap. Change will come in relation to how well we come to understand the implications of centralized power and ultimately integrate that knowledge into how we live. Further, how well we learn to work together cooperatively in a voluntary manner will correlate  directly to how likely it is our species survives past the next hundred years. But curing ourselves of  these brutal mental afflictions is not an easy path to traverse. However, I’ll argue a radical change is needed if we want to once again have human lives worth living with real choice and agency over our own mind, body, and time.

From Soft to Hard Fascism: “Get In Your House Right Now!”

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By Kurt Nimmo

Source: Another Day in the Empire

There can no longer be any doubt—America is now a full-blown fascist state. In the past, authoritarian fascism was kept reserved in the shadows, largely out of the public eye, but in a remarkably short period of time it has emerged from the darkness to show its fangs and snarl menacingly at the people, many of them cowed and dutifully following irrational orders from on high.

As the following video demonstrates, state violence is not directed exclusively at rioters and Antifa goons pretending to be anarchists (most would be unable to define the term) as they loot, burn, and attack the media and innocent bystanders. Violence is used to frighten and intimidate the real enemies of the state—the American people, or those who casually and defy the COVID lockdown and others peacefully protesting murder at the hand of a psychopathic cop.

Fortunately, the woman in the video was not seriously injured. She wasn’t looting Target or burning down Walmart. The woman made the mistake of venturing out on the porch of her home, her private property, and for this crime, she was shot with a paintball by a member of a “state militia” (now federalized).

The social fabric is coming apart at the seams. First mandatory lockdowns, state-imposed impoverishment, followed by an unfolding Greatest Depression as a result of a shutdown economy, and now social unrest, violence, theft, and arson in two dozen large cities across the country.

If this degree of violence and destruction is possible centered around the death of a single man, imagine what will happen when millions of people are in desperate straits, unemployed, many evicted, and homeless. It will not be simply police stations that go up in flames. It will be statehouses.   

However, the American people have demonstrated repeatedly they are gullible and easily steered into dead-end diversions pumped up and hyped 24/7 by a corporate propaganda media. The Trump hatefest and political polarization—worse than any in recent memory—will no doubt go by the wayside as millions of Americans face the “new normal” envisioned by their masters—a standard of living in rapid freefall, soon to crash on the rocks. None of this is happenstance or coincidental.

Most Americans may not have protested the endless wars and criminal economic scams of the ruling elite (mostly due to decades of incessant propaganda), but they will raise their voices and fists when they are unemployed for months on end, evicted from homes and apartments, have their cars repossessed, and are confronted with hunger, want, and homelessness.

In order to enforce the latest manifestation of psychopathic neoliberalism and predatory crony capitalism, the state will depend on steroid-headed soldiers and cops to frighten and intimidate the people.

It may be paintballs today, but tomorrow it might be live ammo.