Having Sucked America Dry, Tech Giants Seek New Markets Beyond Reach of US Antitrust Laws

Sept. 27, 2015 Facebook CEO Mark Zuckerberg hugs Prime Minister of India Narendra Modi at Facebook in Menlo Park, Calif. (AP Photo/Jeff Chiu, File)

An aggressive push to consolidate companies in the tech sector, coupled with the world’s ever-increasing dependence on digital platforms and tools, is quickly leading to a crisis of sovereignty.

By Raul Diego

Source: MintPress News

The American consumer market for big tech gadgets appears to have reached the point of saturation as the novelty of mobile devices and laptops plateau and the persistent lockdown sees savings dwindle and discretionary spending disappear. Apple, which has enjoyed reigning over the smartphone market for more than a decade, has been forced to drop its prices over the last year as a result of a market at full capacity.

Nevertheless, one of the world’s most liquid companies, along with other tech giants like Facebook and Google – whose parent company, Alphabet, Inc. recently overtook Apple as the most cash-rich company in the world – are taking full advantage of their position to gobble up startups in emerging sectors in the Artificial Intelligence (AI) space like Natural Language Processing (NLP), Machine Learning (ML) and Deep Learning (DL), in order to solidify their place in other, mostly untapped markets in developing nations.

Big tech’s insatiable appetite, as manifested in this current sprint to further consolidate their assets, is bound to give them even more control over their already substantial access to our data and other digital activities of the population at large.  Earlier this year, then Presidential candidate Elizabeth Warren led the call to “Break Them Up,” in reference to the big tech companies, declaring that they had “bulldozed competition, used our private information for profit, and tilted the playing field against everyone else. And in the process, they have hurt small businesses and stifled innovation.” Her plan to “level the playing field,” however, seems to have gone away with her fleeting candidacy.

Nonetheless, they are all gearing up to face an election-year challenge to their growing power as a year-long House Judiciary subcommittee investigation is set to conclude and will more than likely provide plenty of fodder for the antitrust battles looming on the horizon. Some analysts have speculated that the U.S. government could impose fines on companies like Google in the tens of billions for past violations. But, whether or not this Congress implements measures with any real teeth remains to be seen.

Captive market shares

American tech giants are turning their focus to south-east Asia as their original markets in the U.S. can no longer support most of their quarterly profit projections. Apple’s recent acquisition of Seattle-based Xnor.ai, which specializes in “low-power, edge-based artificial intelligence tools” that will help them develop low-cost hardware for things like security cameras using artificial visual intelligence.

The Xnor.ai acquisition is just one of several made by Apple this year. Others include an Irish AI platform called Voysis that enables voice interactions with digital retailers; NextVR, a virtual reality headset company that holds over 40 patents in that space and will help Apple carve out a niche in the burgeoning world of streaming music and sporting events.

Google, which already has a virtual monopoly over Internet search capabilities and related tools, is aggressively pursuing startups in the cloud computing space, healthcare, and advertising market. A salient example is the ongoing $2.1 Billion-dollar acquisition of Fitbit, which has reportedly entered its final stages but has raised calls in some quarters for U.S. antitrust regulators to take a closer look.

The bank of Zuckerberg

Meanwhile, Facebook is continuing its incursion into the virtual entertainment arena with the purchase of Sanzaru Games in February as the social media giant solidifies its VR stake by taking over both hardware and software sides of that emerging market. Zuckerberg has also added to his social media empire with plans to acquire animated gif search engine Giphy for $400 Million, extending his consolidation over two of the most popular social media and communication platforms in its portfolio: Instagram and WhatsApp.

Facebook’s recent $5.7 Billion-dollar investment in India’s Jio Platforms also reveals how the tech giant is betting on Asia for its future growth. Facebook claims that Jio has “brought more than 388 million people online” and is poised to leverage its ubiquitous presence in the country through WhatsApp, boasting that the chat/call app has become a “commonly used verb across many Indian languages and dialects.”

The Indian telecom, led by that nation’s richest man, also includes a recently launched e-commerce site called JioMart, that further opens the door for Facebook’s digital payments platform and has the very real potential to put the social media company in a new class as a payment processing giant, shaking up the status quo in a space largely controlled by the banking sector.

Breaking out of the virtual gold cage

Having sucked the American market dry, these colossal corporations continue their unfettered growth and are increasingly beyond the reach of national anti-monopoly laws. Their aggressive push to consolidate across sectors in the technology space, coupled with the world’s ever-increasing dependence on digital platforms and tools is quickly leading us into a crisis of sovereignty.

If three companies own or have a stake in virtually all of the apps, gadgets and software that are ultimately responsible for collecting out data, performing our transactions and providing the content we consume, we will effectively become prisoners of these same corporations.

Even if Google were to re-instate the infamous “don’t be evil” motto in its code of conduct, such a state of affairs would render that promise moot. The slew of acquisitions by the world’s top tech companies in the midst of an economic depression for the rest of us does not bode well for a future of greater self-determination as the wealth and knowledge gaps grow larger.

Efforts to bridge these gaps are being undertaken by people like Dion Devow in Australia, an entrepreneur who is on a mission to close the gap between Indigenous Australians and IT. But, how effective can such efforts really be in the long run if the technological infrastructure continues to accumulate in the hands of so very few?

Elite television news rescued by COVID

By Jon Rappoport

Source: NoMoreFakeNews.com

Yet another consequence of the fake pandemic is the propping up of that doddering old fool, elite television news.

The COVID story doesn’t need Walter Cronkite. It only needs wall to wall. From 5AM to midnight, pandemic updates (mixed now with riot coverage), and the network ratings get well. The ratings jump out of the dumpster and rumble on the studio set and do cartwheels.

I’ve written a number of articles about network television news. Here are excerpts—


NEWS ABOUT THE NEWS.

The elite anchor is not a person filled with passion or curiosity. Therefore, the audience doesn’t have to be passionate or filled with curiosity, either.

The anchor is not a demanding voice on the air; therefore, the audience doesn’t have to be demanding.

The anchor isn’t hell-bent on uncovering the truth. For this he substitutes a false dignity. Therefore, the audience can surrender its need to wrestle with the truth and replace that with a false dignity of its own.

The anchor takes propriety to an extreme: it’s unmannerly to look below the surface of things. Therefore, the audience adopts those manners.

On air, the anchor is neutral, a castratus, a eunuch.

This is a time-honored ancient tradition. The eunuch, by his diminished condition, has the trust of the ruler. He guards the emperor’s inner sanctum. He acts as a buffer between his master and the people. He applies the royal seal to official documents.

Essentially, the television anchor is saying, “See, I’m ascetic in the service of truth. Why would I hamstring myself this way unless my mission is sincere objectivity?”

All expressed shades of emotion occur and are managed within that persona of the dependable court eunuch. The anchor who can move the closest to the line of being human without actually arriving there is the champion. In recent times, it was Brian Williams—until his “conflations” and “misremembrances” surfaced, and he was exiled to the wasteland of MSNBC.

The vibrating string between eunuch and human is the frequency that makes an anchor “great.” Think Cronkite, Chet Huntley, Edward R Murrow. Huntley was just a touch too masculine, so they teamed him up with David Brinkley, a medium-boiled egg. Brinkley supplied twinkles of comic relief.

The cable news networks don’t have anyone who qualifies as an elite anchor. Wolf Blitzer of CNN made his bones during the first Iraq war only because his name fit the bombing action so well. Brit Hume of FOX has more anchor authority than anyone now working in network television, but he’s semi-retired, content to play the role of contributor, because he knows the news is a scam on wheels.

There are other reasons for “voice-neutrality” of the anchor. Neutrality conveys a sense of science. “We did the experiment in the lab and this is how it turned out.”

Neutrality implies: we, the news division, don’t have to make money (a lie); we’re not like the cop shows; we’re on a higher plane; we’re performing a public service; we’re a responsible charity.


From the early days of television, there has been a parade of anchors/actors with know-how—intonation, edge of authority, parental feel, the ability to execute seamless blends from one piece of deception to the next:

John Daly, Douglas Edwards, Ed Murrow, Chet Huntley, David Brinkley, Harry Reasoner, Walter Cronkite, Dan Rather, and more recently, second-stringers—Brian Williams, Diane Sawyer, Scott Pelley.

They’re all gone.

Now we have Lester Holt, David Muir, and the newly appointed Norah O’Donnell. They couldn’t sell water in the desert.

Lester Holt is a cadaverous presence on-air, whose major journalistic achievement thus far is interrupting Donald Trump 41 times during a presidential debate; David Muir has the gravitas of a Sears underwear model; Norah O’Donnell, long-term, will have the energy needed to illuminate a miniature Xmas-tree light bulb.

The networks have no authoritative anchor-fathers waiting in the wings. They don’t breed them and bring them up through the minor leagues anymore.

Instead, armies of little Globalists, and ideologues who don’t realize they’re working for Globalists, have been infiltrating the news business. At best, they’re incompetent.

Thus, news-production techniques that enable an ongoing illusion of oceanic authority collapse like magnetic fields that have been suddenly switched off.

The selective mood lighting, the restful blue colors on the set, the inter-cutting of graphics and B-roll footage, the flawless shifts to reporters in far-flung places…it’s as if all these supporting features have suddenly been overcome by actors in a stage play who are abruptly stepping out of character. The spell is broken.

Elite mainstream news, in a fatuous attempt to save itself, is trying a democratic approach. Anchors are sharing more on-air minutes with gaggles of other reporters. But this is counter-productive in the extreme. The News has always meant one face and one authority and one voice and one tying-together of all broadcast elements. It’s as if, in a hypnotherapist’s office, the therapist decides to bring in colleagues to help render the patient into an alpha-state.

If by some miracle, the news bosses could raise Walter Cronkite, “the father of our country,” from the dead and put him back in the chair… but too many years have gone by; years of unaccomplished anchors. The horse is out of the barn, the cat is out of the bag.

This is why major news outlets have been appealing to social media/big tech for help, AKA censorship of independent voices.

One veteran news director told me several years ago, “We don’t have the stars [elite anchors] anymore. The star system is dead. You could comb all the local news outlets in America, and you wouldn’t find one face and voice who could really carry the freight. They’ve vanished. The up and coming people are lame. We’ve made them that way. It’s some cockeyed standard of equality we’ve internalized. And now we’re paying the price.”


The news is all about manipulating the context of stories. The thinner the context, the thinner the mind must become to accept it.

Imagine a rectangular solid. The news covers the top surface. Therefore, the viewer’s mind is trained to work in only two dimensions. Then it can’t fathom depth, and it certainly can’t appreciate the fact that the whole rectangular solid moves through time, the fourth dimension.

First, we have the studio image itself, the colors in foreground and background, the blend of restful and charged hues. The anchor and his/her smooth style.

Then we have the shifting of venue from the studio to reporters in the field, demonstrating the reach of coverage: the planet. As if this equals authenticity.

Actually, those reporters in the field rarely dig up information on location. A correspondent standing on a rooftop in Cairo could just as easily be positioned in a bathroom in a Las Vegas McDonald’s. His report would be identical.

The managing editor, usually the elite news anchor, chooses the stories to cover and has the final word on their sequence.

The anchor goes on the air: “Our top story tonight, more signs of gridlock today on Capitol Hill, as legislators walked out of a session on federal budget negotiations…”

The viewer fills in the context for the story: “Oh yes, the government. Gridlock is bad. Just like traffic on the I-5. We want the government to get something done, but they won’t.”

The anchor: “The Chinese government reports the new flu epidemic has spread to three provinces. Forty-two people have already died, and nearly a hundred are hospitalized…”

The viewer again supplies context, such as: “Flu. Dangerous. Epidemic. Get my flu shot.”

The anchor: “A new university study states that gun owners often stock up on weapons and ammunition…”

The viewer: “People with guns. Why do they need a dozen weapons? I don’t need a gun. The police have guns. Could I kill somebody if he broke into the house?”

The anchor: “Doctors at Yale University have made a discovery that could lead to new treatments in the battle against autism…”

Viewer: “Good. More research. Laboratory. The brain.”

If, at the end of the newscast, the viewer bothered to review the stories and his own reactions to them, he would realize he’d learned nothing. But reflection is not the game.

In fact, the flow of the news stories has washed over him and created very little except a sense of (false) continuity.

Therefore, every story on the news broadcast achieves the goal of keeping the context thin—night after night, year after year. The overall effect of this staging is: small viewer’s mind, small viewer’s understanding.

Next we come to words and pictures. More and more, news broadcasts are using the rudimentary film technique of a voice narrating what the viewer is seeing on the screen.

People are shouting and running and falling in a street. The anchor or a field reporter says: “The country is in turmoil. Parliament has suspended sessions for the third day in a row, as the government decides what to do about uprisings aimed at forcing democratic elections…”

Well, the voice must be right, because we’re seeing the pictures. If the voice said the riots were due to garbage-pickup cancellations, the viewer would believe that, too.

We see Building #7 of the WTC collapse. Must have been the result of a fire. The anchor tells us so. Words give meaning to pictures.

Staged news.

Since the dawn of time, untold billions of people have been urging a “television anchor” to “explain the pictures.”

The news gives them that precise solution, every night.

“Well, Mr. Jones,” the doctor says, as he pins X-rays to a screen in his office. “See this? Right here? We’ll need to start chemo immediately, and then we may have to remove most of your brain, and as a follow-up, take out one eye.”

Sure, why not? The patient saw the pictures and the anchor explained them.

Eventually, people get the idea and do it for themselves. They see things, they invent one-liners to explain them.

They’re their own anchors. They short-cut and undermine their own experience with vapid summaries of what it all means.

For “intelligent” viewers, there is a sober mainstream choice in America, a safety valve: PBS. That newscast tends to show more pictures from foreign lands.

“Yes, I watch PBS because they understand the planet is interconnected. It isn’t just about America. That’s good.”

Sure it’s good, if you want the same thin-context or false-context reports on events in other countries. Instead of the two minutes NBC might give you about momentous happenings in Syria, PBS will give you four minutes.

PBS experts seem kinder and gentler. “They’re nice and they’re more relaxed. I like that.”

Yes, the PBS experts are taking Valium, and they’re not drinking as much coffee as the CBS experts.


When network television news was created in the late 1940s, no one in charge knew how to do it. It was a new creature.

Sponsors? Yes. A studio with a desk and an anchor? Yes. A list of top stories? Yes. Important information for the public? Yes.

Of course, “important information” could have several definitions—and the CIA already had a few claws into news, so there would be boundaries and fake stories within those boundaries.

The producers knew the anchor was the main event; his voice, his manner, his face. He was the actor in a one-man show. But what should he project to the audience at home?

The first few anchors were dry sandpaper. John Cameron Swayze at NBC, and Douglas Edwards at CBS. But Swayze, also a quiz show host, broke out of the mold and imparted a bit of “cheery” to his broadcasts. A no-no. So he was eventually dumped.

In came a duo. Chet Huntley and David Brinkley. NBC co-anchors from 1956 to 1970. Chet was the heavy, with a somber baritone, and David was “twinkly,” as he was called by network insiders. He lightened the mood with a touch of sarcasm and an occasional grin. It worked. Ratings climbed. Television news as show biz started to take off. At the end of every broadcast, there was: “Good night, Chet.” “Good night, David.” The audience ate it up. They loved that tag.

However, rival CBS wasn’t standing still. They offloaded their anchor, Douglas Edwards, a bland egg, and brought in Walter Cronkite, who would go on to do 19 years in the chair (1962-1981). Walter was Chet Huntley with a difference. As he grew older, he emerged as a father, a favorite uncle, with an authoritative hills-and-valleys baritone that created instant trust. Magic. A news god was born.

Despite many efforts at the three major networks, no anchor over the past 40 years has been able to pull off the full Cronkite effect.

The closest recent competitor—until he was fired for lying and exiled to the waste dump at MSNBC—was Brian Williams. Williams artfully executed a reversal of tradition. He portrayed the youthful prodigy, a gradually maturing version of a newsboy who once bicycled along country roads, threw folded up papers on front porches, and knew all his customers by name. A good boy. A local boy. Your neighbor under the maple trees of an idyllic town. Cue the memories.

By the time Williams took over the helm at NBC, television news was decidedly a team operation. There were reporters in the field. The technology enabled the anchor to go live to these bit players, who tried to exude the impression they were actually running down leads and interviewing key sources on the spot—when in fact they could just as easily be doing their stand-ups from a hot dog cart outside 30 Rockefeller Plaza, the home studio of the network—because most of their information was really coming from inside that studio.

Nevertheless, the team was everything. The anchor was a manager, and his job was to impart an authentic feel to every look-in, from the White House to Paris to Berlin to Jerusalem to Beijing to a polar bear on an iceberg.

And local television news was blowing up to gargantuan proportions. Every city and town and village and hamlet seemed to have its own gaggle of hearty faces delivering vital info of interest to the citizenry. Branding and shaping this local phenomenon evolved into: FAMILY. Yes, that was the ticket. These bubbly, blown-dry, enthused, manic news and weather and sports hawks were really “part of the community.” Local News was no longer shoveled high and deep with an air of objectivity. “Aloof” was out. Share and care was in. What that had to do with actual news was anyone’s guess, but there it was. “Hi, we’re your team at KX6, and we feel what you feel and we live here with you and we know when the roads are icy and the wrecks pile up on the I-15 and the cops arrest someone for cocaine possession and when the charity bake sale is coming up to pay for [toxic] meds for seniors and when your cousin Judy passes away we mourn as you do…”

News for and by a fictional collective.

Disney news.

A caricature of a simulacrum of an imitation.

The discovery was: the viewing audience wanted news as a cartoon.

The problem is: this model deteriorates. The descending IQ of the news producers and anchors and reporters undergoes a grotesque revolution. Year by year, broadcasts make less sense. Even on the national scene, NBC hands its prime anchor spot to Lester Holt, who plays the old Addams Family living corpse, Lurch.

ABC, always looking for a new face, goes all in with David Muir, a Sears underwear-model type.

CBS counters with a youngish cipher, Jeff Glor, after ridding itself of Scott Pelley, who, true to his on-camera persona, might show up on The Young and the Restless as a lunatic surgeon doing operations without anesthetic.

The networks are losing it.

It’s a sight to behold.

Cable news is even worse. The longest surviving anchor is Wolf Blitzer at CNN. Wolf’s energy level tops out as a man in a tattered bathrobe, in his kitchen, chatting with his cousin while they play checkers.


When professionals broadcast one absurdity after another, they begin to see the effects are actually strengthening their own position of authority.

It’s a revelation. It’s also a continuation of the tradition of the Trickster archetype. For example, with just a few minor adjustments, Brian Williams can be seen as the sly Reynard the Fox…

From the viewpoint of elite television news, controlling the minds of its audience depends on what’s politely called “cognitive dissonance”:

As the anchor recites a news story, the viewer sees an obvious hole through which he could drive a truck.

The story makes no sense, yet it’s being presented as bland fact. The trusted anchor clearly has no problem with it.

What’s the viewer to do? He experiences a contradiction, a “dissonance.”

For example, this year’s flu vaccine. The US government has admitted the vaccine is geared to a flu virus that isn’t circulating in the population. Therefore, even by conventional standards, the vaccine is useless. But the kicker is, the CDC says people should take the vaccine anyway.

The anchor relays all this information—and never seriously questions the situation, never torpedoes the government for recommending the vaccine.

The average viewer feels a tug, a pulse of discomfort, a push-pull. The vaccine story is idiocy (side one), but the trusted anchor accepts it (side two).

Dissonance.

The top chiefs of news—and top propaganda operatives—anticipate cognitive dissonance. In a real sense, they want it to happen. They make it happen. Over and over.

Why?

Because it throws the viewer into a tailspin. And in that mental state, in his effort to resolve the contradiction, he will normally choose to…give in. Surrender. Believe in the anchor. It’s the easier path.

The viewer will even doubt his own perception. “I see no good reason for Building 7 to collapse, but the news doesn’t bring that up, so…it must be me.”

This is the power of the news. It presents absurdities and then moves right along, as if nothing has happened.

The introduction of contradiction, dissonance, and absurdity parading as ordinary reality is an intentional feature of brainwashing.

On the nightly news, the anchor reports that US government debt has risen by another three trillion dollars. He then cuts to a statement from a Federal Reserve spokesman: the new debt level isn’t a problem; in fact, it’s sound monetary policy; it strengthens the economy.

The viewer, caught up in this absurdity, tries to make sense of it, then gives up and passively accepts it. Brainwashing.

Smoothly transitioning from this story, the anchor relays information from the CDC: vaccination rates must achieve 90% in the population, in order to protect people from dangerous viruses. The viewer thinks, “Well, my daughter is already vaccinated, so if she comes into contact with a child who isn’t vaccinated, why would there be a problem? Why does 90% of the population have to be vaccinated to keep her safe? She’s already vaccinated.”

The viewer wrestles with this craziness for a moment, then gives in and accepts what the CDC and the anchor are saying. More passivity. More brainwashing.

The anchor moves right along to the next story: “The US is experiencing one of the coldest winters in history, further evidence of the effects of global warming, according to scientists at the United Nations.”

The viewer shakes his head, tries to deal with this dissonance, surrenders, and accepts what he is hearing. Deeper passivity is the result. Deeper brainwashing.

On and on it goes, day after day, month after month, year after year, on the news.

Contradiction, absurdity, dissonance; acceptance, surrender, passivity.

The same general formula is used in interrogations and formal mind control. It adds up to disorientation of the target.

Most disoriented people opt for the lowest- common-denominator solution: give in; accept the power of the person of authority.

Among the many supporters of conventional news is the education system. Most teachers never learn logic, and they don’t teach it. The result? Their students never gain the ability or the courage to reject the news and its dissonances.

What little these students gain from 12 or 16 years of schooling they eventually sacrifice on the altar of consensus reality—as broadcast every night on the screen before them.


Salvador Dali, surrealist, was one of the most reviled painters of the 20th century.

He disturbed Conventional Folk who just wanted to see an apple in a bowl on a table.

Dali’s apples and bowls were executed with a technical skill few artists could match—except the apples were coming out of a woman’s nose while she was ironing the back of a giraffe, who was on fire.

“It doesn’t go together! It doesn’t make sense! He’s Satan!”

Yet, these same Folk sit in front of the television screen every night and watch the entirely surreal network news. Elite anchors seamlessly and quickly move from blood running in the streets of a distant land to a hairdryer product-recall to an unseasonal hail storm in Michigan to a debate about public policy on pedophiles to genetically engineered mosquitoes in Florida to a possible breakthrough in storing computer simulations of human brains for later recapture to squirrels gathering nuts in New Jersey.

Nothing surreal about this??

When the elite anchor goes on air and digs in, he’s paid to be seamless. He could be transitioning from mass killings in East Asia to sub-standard air conditioners, and he makes the audience track through the absurd curve in the road.

The elite anchor should have a voice that soothes just a bit but brooks no resistance. It’s authoritative but not demanding.

Scott Pelley (CBS) was careful to watch himself on this count, because his tendency was to shove the message down the viewer’s throat like a surgeon making an incision with an icepick. Pelley was a high-IQ android who was training himself to be human.

Diane Sawyer wandered into sloppiness, like a housewife who’s still wearing her bathrobe at 4 in the afternoon. She exuded sympathetic syrup, as if she’d had a few cocktails for lunch. And she affected a pose of “caring too much.”

Brian Williams was head and shoulders above his two competitors. You had to look and listen hard to spot a speck of confusion in his delivery. He knew how to believe his act was real. He could also flick a little aw-shucks apple-pie at the viewer. Country boy who moved to the big city.

Segues, blends are absolutely vital. These are the transitions between one story and another. “Earlier today, in Boston.” “Meanwhile, in New York, the police are reporting.” “But on the Hill, the news was somewhat disappointing for supporters of the president.”

Doing excellent blends can earn an anchor millions of dollars. The audience doesn’t wobble or falter or make distinctions between what went before and what’s coming now. It’s all one script. It’s one winding weirdness of story every night.


And NOW, we have COVID, and we have riots. The current stories— the lies are egregious and relentless, the editorializing is cheesy. The omissions are Grand Canyons.

Surreal, cognitively dissonant, smoothly blended, outrageous:

The News Business. As Usual.

But with the junior varsity anchors, and their lack of skill, the networks need overwhelming stories to sell their act. They need COVID and riots. They have to have government manufacturing chaos and destruction and tighter control, in order to keep viewers coming back night after night.

You’ve got elite Globalists and elite government on one edge, and elite news on the other edge. They feed into each other. They bolster each other.

So why must they spend so much time censoring dissent?

Because freedom exists.

Because, no matter what, it always will.

And underestimating its power, time and time again, has proven to be a colossal mistake.

Meet BlackRock, the New Great Vampire Squid

By Ellen Brown

Source: Web of Debt

BlackRock is a global financial giant with customers in 100 countries and its tentacles in major asset classes all over the world; and it now manages the spigots to trillions of bailout dollars from the Federal Reserve. The fate of a large portion of the country’s corporations has been put in the hands of a megalithic private entity with the private capitalist mandate to make as much money as possible for its owners and investors; and that is what it has proceeded to do.

To most people, if they are familiar with it at all, BlackRock is an asset manager that helps pension funds and retirees manage their savings through “passive” investments that track the stock market. But working behind the scenes, it is much more than that. BlackRock has been called “the most powerful institution in the financial system,” “the most powerful company in the world” and the “secret power.” It is the world’s largest asset manager and “shadow bank,” larger than the world’s largest bank (which is in China), with over $7 trillion in assets under direct management  and another $20 trillion managed through its Aladdin risk-monitoring software. BlackRock has also been called “the fourth branch of government” and “almost a shadow government”, but no part of it actually belongs to the government. Despite its size and global power, BlackRock is not even regulated as a “Systemically Important Financial Institution” under the Dodd-Frank Act, thanks to pressure from its CEO Larry Fink, who has long had “cozy” relationships with government officials.

BlackRock’s strategic importance and political weight were evident when four BlackRock executives, led by former Swiss National Bank head Philipp Hildebrand, presented a proposal at the annual meeting of central bankers in Jackson Hole, Wyoming, in August 2019 for an economic reset that was actually put into effect in March 2020. Acknowledging that central bankers were running out of ammunition for controlling the money supply and the economy, the BlackRock group argued that it was time for the central bank to abandon its long-vaunted independence and join monetary policy (the usual province of the central bank) with fiscal policy (the usual province of the legislature). They proposed that the central bank maintain a “Standing Emergency Fiscal Facility” that would be activated when interest rate manipulation was no longer working to avoid deflation. The Facility would be deployed by an “independent expert” appointed by the central bank.

The COVID-19 crisis presented the perfect opportunity to execute this proposal in the US, with BlackRock itself appointed to administer it. In March 2020, it was awarded a no-bid contract under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to deploy a $454 billion slush fund established by the Treasury in partnership with the Federal Reserve. This fund in turn could be leveraged to provide over $4 trillion in Federal Reserve credit. While the public was distracted with protests, riots and lockdowns, BlackRock suddenly emerged from the shadows to become the “fourth branch of government,” managing the controls to the central bank’s print-on-demand fiat money. How did that happen and what are the implications?

Rising from the Shadows

BlackRock was founded in 1988 in partnership with the Blackstone Group, a multinational private equity management firm that would become notorious after the 2008-09 banking crisis for snatching up foreclosed homes at firesale prices and renting them at inflated prices. BlackRock first grew its balance sheet in the 1990s and 2000s by promoting the mortgage-backed securities (MBS) that brought down the economy in 2008. Knowing the MBS business from the inside, it was then put in charge of the Federal Reserve’s “Maiden Lane” facilities. Called “special purpose vehicles,” these were used to buy “toxic” assets (largely unmarketable MBS) from Bear Stearns and American Insurance Group (AIG), something the Fed was not legally allowed to do itself.

BlackRock really made its fortunes, however, in “exchange traded funds” (ETFs). It gained trillions in investable assets after it acquired the iShares series of ETFs in a takeover of Barclays Global Investors in 2009. By 2020, the wildly successful iShares series included over 800 funds and $1.9 trillion in assets under management.

Exchange traded funds are bought and sold like shares but operate as index-tracking funds, passively following specific indices such as the S&P 500, the benchmark index of America’s largest corporations and the index in which most people invest. Today the fast-growing ETF sector controls nearly half of all investments in US stocks, and it is highly concentrated. The sector is dominated by just three giant American asset managers – BlackRock, Vanguard and State Street, the “Big Three” – with BlackRock the clear global leader. By 2017, the Big Three together had become the largest shareholder in almost 90% of S&P 500 firms, including Apple, Microsoft, ExxonMobil, General Electric and Coca-Cola. BlackRock also owns major interests in nearly every mega-bank and in major media.

In March 2020, based on its expertise with the Maiden Lane facilities and its sophisticated Aladdin risk-monitoring software, BlackRock got the job of dispensing Federal Reserve funds through eleven “special purpose vehicles” authorized under the CARES Act. Like the Maiden Lane facilities, these vehicles were designed to allow the Fed, which is legally limited to purchasing safe federally-guaranteed assets, to finance the purchase of riskier assets in the market.

Blackrock Bails Itself Out

The national lockdown left states, cities and local businesses in desperate need of federal government aid. But according to David Dayen in The American Prospect, as of May 30 (the Fed’s last monthly report), the only purchases made under the Fed’s new BlackRock-administered SPVs were ETFs, mainly owned by BlackRock itself. Between May 14 and May 20, about $1.58 billion in ETFs were bought through the Secondary Market Corporate Credit Facility (SMCCF), of which $746 million or about 47% came from BlackRock ETFs. The Fed continued to buy more ETFs after May 20, and investors piled in behind, resulting in huge inflows into BlackRock’s corporate bond ETFs.

In fact, these ETFs needed a bailout; and BlackRock used its very favorable position with the government to get one. The complicated mechanisms and risks underlying ETFs are explained in an April 3 article by business law professor Ryan Clements, who begins his post:

Exchange-Traded Funds (ETFs) are at the heart of the COVID-19 financial crisisOver forty percent of the trading volume during the mid-March selloff was in ETFs ….

The ETFs were trading well below the value of their underlying bonds, which were dropping like a rock. Some ETFs were failing altogether. The problem was something critics had long warned of: while ETFs are very liquid, trading on demand like stocks, the assets that make up their portfolios are not. When the market drops and investors flee, the ETFs can have trouble coming up with the funds to settle up without trading at a deep discount; and that is what was happening in March.

According to a May 3 article in The National, “The sector was ultimately saved by the US Federal Reserve’s pledge on March 23 to buy investment-grade credit and certain ETFs. This provided the liquidity needed to rescue bonds that had been floundering in a market with no buyers.”

Prof. Clements states that if the Fed had not stepped in, “a ‘doom loop’ could have materialized where continued selling pressure in the ETF market exacerbated a fire-sale in the underlying [bonds], and again vice-versa, in a procyclical pile-on with devastating consequences.” He observes:

There’s an unsettling form of market alchemy that takes place when illiquid, over-the-counter bonds are transformed into instantly liquid ETFs. ETF “liquidity transformation” is now being supported by the government, just like liquidity transformation in mortgage backed securities and shadow banking was supported in 2008.

Working for Whom?

BlackRock got a bailout with no debate in Congress, no “penalty” interest rate of the sort imposed on states and cities borrowing in the Fed’s Municipal Liquidity Facility, no complicated paperwork or waiting in line for scarce Small Business Administration loans, no strings attached. It just quietly bailed itself out.

It might be argued that this bailout was good and necessary, since the market was saved from a disastrous “doom loop,” and so were the pension funds and the savings of millions of investors. Although BlackRock has a controlling interest in all the major corporations in the S&P 500, it professes not to “own” the funds. It just acts as a kind of “custodian” for its investors — or so it claims. But BlackRock and the other Big 3 ETFs vote the corporations’ shares; so from the point of view of management, they are the owners. And as observed in a 2017 article from the University of Amsterdam titled “These Three Firms Own Corporate America,” they vote 90% of the time in favor of management. That means they tend to vote against shareholder initiatives, against labor, and against the public interest. BlackRock is not actually working for us, although we the American people have now become its largest client base.

In a 2018 review titled “Blackrock – The Company That Owns the World”, a multinational research group called Investigate Europe concluded that BlackRock “undermines competition through owning shares in competing companies, blurs boundaries between private capital and government affairs by working closely with regulators, and advocates for privatization of pension schemes in order to channel savings capital into its own funds.”

Daniela Gabor, Professor of Macroeconomics at the University of Western England in Bristol, concluded after following a number of regulatory debates in Brussels that it was no longer the banks that wielded the financial power; it was the asset managers. She said:

We are often told that a manager is there to invest our money for our old age. But it’s much more than that. In my opinion, BlackRock reflects the renunciation of the welfare state. Its rise in power goes hand-in-hand with ongoing structural changes; in finance, but also in the nature of the social contract that unites the citizen and the state.

That these structural changes are planned and deliberate is evident in BlackRock’s August 2019 white paper laying out an economic reset that has now been implemented with BlackRock at the helm.

Public policy is made today in ways that favor the stock market, which is considered the barometer of the economy, although it has little to do with the strength of the real, productive economy. Giant pension and other investment funds largely control the stock market, and the asset managers control the funds. That effectively puts BlackRock, the largest and most influential asset manager, in the driver’s seat in controlling the economy.

As Peter Ewart notes in a May 14 article on BlackRock titled “Foxes in the Henhouse,” today the economic system “is not classical capitalism but rather state monopoly capitalism, where giant enterprises are regularly backstopped with public funds and the boundaries between the state and the financial oligarchy are virtually non-existent.”

If the corporate oligarchs are too big and strategically important to be broken up under the antitrust laws, rather than bailing them out they should be nationalized and put directly into the service of the public. At the very least, BlackRock should be regulated as a too-big-to-fail Systemically Important Financial Institution. Better yet would be to regulate it as a public utility. No private, unelected entity should have the power over the economy that BlackRock has, without a legally enforceable fiduciary duty to wield it in the public interest.

The financialization of the end of the world

By Kurt Cobb

Source: resilience

For those who are fans of cartoons from The New Yorker magazine and consistent readers of this blog, you might be able to guess my two favorite cartoons. In the first one, a man in a coat and tie stands at a podium and tells his unseen audience the following: “And so, while the end-of-the-world scenario will be rife with unimaginable horrors, we believe that the pre-end period will be filled with unprecedented opportunities for profit.”

In the second, a man in a tattered suit sits cross-legged near a campfire with three children listening to him intently as he says this: “Yes, the planet got destroyed. But for a beautiful moment in time we created a lot of value for shareholders.”

Now, in the you-can’t-make-this-stuff-up category, financial writer Paul Farrell used the caption from the first cartoon in a 2015 piece for MarketWatch entitled: “Your No. 1 end-of-the-world investing strategy.” The subheading is: “How to pick stocks for the near term when long-term trends say collapse is near.” The subhead actually seems like it might be another caption from a New Yorker cartoon (or possibly one from The Onion). Why exactly would you invest in stocks—as opposed to seeds of food crops and sturdy garden implements—”when long-term trends say collapse is near”? But I’ll put that down to bad headline writing.

In Farrell’s defense, he frequently used his column in MarketWatch to warn his readers of the coming collapse of modern civilization if we don’t change our ways. He was obliged to give investment advice, of course, because that’s what the column was for.

Few other investment gurus are as intellectually honest as Farrell. Among prominent investment managers, only Jeremy Grantham comes close to understanding the scope of the challenges we face. Grantham wrote a piece in 2013 called “The Race of Our Lives” that outlines the myriad challenges humans face. He starts with a discussion of the fall of civilizations. (He updated his views in 2018.)

One would think that the coronavirus pandemic would allow for some sober reflection among those in the financial community as the pandemic-induced crash of the economy and the markets has called into question the stability of practically all the arrangements of modern civilization. Instead, the focus is on how stock markets could be back at or near all-times highs at the beginning of what is arguably the next Great Depression.

The New Yorker cartoons linked above appropriately characterize the madness that grips late-stage civilizations as their pillars begin to fall. Instead of attempting to adapt to new realities, every attempt is made to maintain the current fragile system. The trillions of dollars pumped into the world financial system by central banks and governments in the wake of the pandemic have done little except stoke renewed financial bubbles in practically all financial markets (and thereby bailed out the mostly wealthy owners of financial assets).

The disconnect is hard to miss. The latest reading of the U.S. Federal Reserve Bank of Atlanta’s GDPNow indicator, which is frequently updated as new data becomes available, now predicts that U.S. GDP will contract by 45.5 percent in the current quarter. (The number is annualized and seasonally adjusted.)

Even so the NASDAQ Composite Index hit a new all-time high earlier this month just three months after the recent trough reached during the crash. The S&P 500 is now very close to a new all-time high. Neither development makes sense in the middle of the worst economic downturn since the Great Depression. For comparison, it took more than two years for the NASDAQ Composite from the bottom in 2009 during the Great Financial Crisis to regain its 2007 highs. It took the S&P 500 more than four years.

Of course, the financialization of everything continues. Vaccine makers are in line for government funds. Naturally, it takes money to develop a vaccine. But drug makers aren’t in the business of keeping people healthy. They are in the business of making money. In the United States at least they are helped by the fact that they aren’t liable if their vaccine kills or injuries someone. And, executives in one money-losing pharmaceutical firm cashed in stock right after their company goosed the shares significantly higher with a very preliminary announcement about the company’s coronavirus vaccine research.

When it comes to real estate, it used to be that people bought it for income and as a store of value. Now firms buy real estate mostly with borrowed money and try to make gains mostly through property price appreciation. Often the real estate loans are packaged into securities that are sold and resold as part of the giant Wall Street and worldwide financial casino.

One of the surest signs of the financialization of everything and the growing disconnect of finance from reality is the credit default swap (CDS). The CDS is essentially insurance for loans and bonds. The buyer pays the seller a premium every month. If the instrument insured defaults, the seller provides a predetermined payment to reimburse the CDS buyer. Now here’s the weird thing: An investor doesn’t even have to own the loan or bond to insure it. It’s like me taking out an insurance policy on your home against fire when I have no ownership or interest in the home. In fact, I have every incentive to make sure your house burns down. Do you see any problem with that?

For normal insurance, the buyer must have an insurable interest. Typically, this means the buyer must actually own the thing he or she is insuring. The CDS, on the other hand, is an ideal instrument for those who want to bring on a financial end-of-the-world scenario. The buyers have every reason to want the economy to go down the drain as their payments may be 10 or even 20 times their initial investment.

Many wealthy people fear and even believe an end-of-the-world scenario is possible or probable. Some think they can hold up in luxury bunkers until the dust clears. But what if, when the dust clears, their wealth is gone and the financial world they used to inhabit has vanished.

Perhaps they will sit around campfires telling their grandchildren about the old days when finance was king and the real economy of goods and services was just a place where rubes got their daily bread—while, of course, simultaneously providing an outsized portion to the rich.

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

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

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.

The System Is Rigged: Qualified Immunity Is How the Police State Stays in Power

By John W. Whitehead

Source: Mint Press News

The system is rigged, the government is corrupt, and “we the people” continue to waste our strength by fighting each other rather than standing against the tyrant in our midst.

Because the system is rigged, because the government is corrupt, and because “we the people” remain polarized and divided, the police state will keep winning and “we the people” will keep losing.

Because the system is rigged and the U.S. Supreme Court—the so-called “people’s court”—has exchanged its appointed role as a gatekeeper of justice for its new role as maintainer of the status quo, there will be little if no consequences for the cops who brutalize and no justice for the victims of police brutality.

Because the system is rigged, there will be no consequences for police who destroyed a private home by bombarding it with tear gas grenades during a SWAT team raid gone awry, or for the cop who mistakenly shot a 10-year-old boy after aiming for and missing the non-threatening family dog, or for the arresting officer who sicced a police dog on a suspect who had already surrendered.

This is how unarmed Americans keep dying at the hands of militarized police.

By refusing to accept any of the eight or so qualified immunity cases before it this term that strove to hold police accountable for official misconduct, the Supreme Court delivered a chilling reminder that in the American police state, ‘we the people’ are at the mercy of law enforcement officers who have almost absolute discretion to decide who is a threat, what constitutes resistance, and how harshly they can deal with the citizens they were appointed to ‘serve and protect.”

This is how qualified immunity keeps the police state in power.

Lawyers tend to offer a lot of complicated, convoluted explanations for the doctrine of qualified immunity, which was intended to insulate government officials from frivolous lawsuits, but the real purpose of qualified immunity is to rig the system, ensuring that abusive agents of the government almost always win and the victims of government abuse almost always lose.

How else do you explain a doctrine that requires victims of police violence to prove that their abusers knew their behavior was illegal because it had been deemed so in a nearly identical case at some prior time: it’s a setup for failure.

Do you know how many different ways a cop can kill, maim, torture and abuse someone without being held liable?

The cops know: in large part due to training classes that drill them on the art of sidestepping the Fourth Amendment, which protects us from being bullied, badgered, beaten, broken and spied on by government agents.

This is how “we the people” keep losing.

Although the U.S. Supreme Court recognized in Harlow v. Fitzgerald (1982) that suing government officials for monetary damages is “the only realistic avenue” of holding them accountable for abusing their offices and violating the Constitution, it has ostensibly given the police and other government agents a green light to shoot first and ask questions later, as well as to probe, poke, pinch, taser, search, seize, strip and generally manhandle anyone they see fit in almost any circumstance, all with the general blessing of the courts.

Whether it’s police officers breaking through people’s front doors and shooting them dead in their homes or strip searching motorists on the side of the road, these instances of abuse are continually validated by a judicial system that kowtows to virtually every police demand, no matter how unjust, no matter how in opposition to the Constitution.

Make no mistake about it: this is what constitutes “law and order” in the American police state.

These are the hallmarks of a police state: where police officers, no longer mere servants of the people entrusted with keeping the peace, are part of an elite ruling class dependent on keeping the masses corralled, under control, and treated like suspects and enemies rather than citizens.

Unfortunately, we’ve been traveling this dangerous road for a long time now.

A review of critical court rulings over the past several decades, including rulings affirming qualified immunity protections for government agents by the U.S. Supreme Court, reveals a startling and steady trend towards pro-police state rulings by an institution concerned more with establishing order, protecting the ruling class, and insulating government agents from charges of wrongdoing than with upholding the rights enshrined in the Constitution.

Indeed, as Reuters reports, qualified immunity “has become a nearly failsafe tool to let police brutality go unpunished and deny victims their constitutional rights.” Worse, as Reuters concluded, “the Supreme Court has built qualified immunity into an often insurmountable police defense by intervening in cases mostly to favor the police.”

The system is rigged.

Police can claim qualified immunity for warrantless searches. In Anderson v. Creighton, the Supreme Court ruled that FBI and state law enforcement agents were entitled to qualified immunity protections after they were sued for raiding a private home without a warrant and holding family members at gunpoint, all in a search for a suspected bank robber who was not in the house.

Police can claim qualified immunity for warrantless arrests based on mere suspicion. In Hunter v. Bryant, the Court ruled that police acted reasonably in arresting James Bryant without a warrant in order to protect the president. Bryant had allegedly written a letter that referenced a third-party plot to assassinate President Ronald Reagan, but police had no proof that he intended to harm Reagan beyond a mere suspicion. The charges against Bryant were eventually dropped.

Police can claim qualified immunity for using excessive force against protesters. In Saucier v. Katz, the Court ruled in favor of federal law enforcement agents who forcefully tackled a protester as he attempted to unfurl a banner at Vice President Gore’s political rally. The Court reasoned that the officers acted reasonably given the urgency of protecting the vice president.

Police can claim qualified immunity for shooting a fleeing suspect in the back. In Brosseau v. Haugen, the Court dismissed a lawsuit against a police officer who shot Kenneth Haugen in the back as he entered his car in order to flee from police. The Court ruled that in light of existing case law, the cop’s conduct fell in the “hazy border between excessive and acceptable force” and so she did not violate clearly established law.

Police can claim qualified immunity for shooting a mentally impaired person. In City of San Francisco v. Sheehan, the Court ruled in favor of police who repeatedly shot Teresa Sheehan during the course of a mental health welfare check. The Court ruled that it was not unreasonable for police to pepper spray and shoot Sheehan multiple times after entering her room without a warrant and encountering her holding a knife.

Police officers can use lethal force in car chases without fear of lawsuits. In Plumhoff v. Rickard, the U.S. Supreme Court declared that police officers who used deadly force to terminate a car chase were immune from a lawsuit. The officers were accused of needlessly resorting to deadly force by shooting multiple times at a man and his passenger in a stopped car, killing both individuals.

Police can stop, arrest and search citizens without reasonable suspicion or probable cause. In a 5-3 ruling in Utah v. Strieff, the U.S. Supreme Court effectively gave police the go-ahead to embark on a fishing expedition of one’s person and property, rendering Americans completely vulnerable to the whims of any cop on the beat.

Police officers can stop cars based on “anonymous” tips or for “suspicious” behavior such as having a reclined car seat or driving too carefully. In a 5-4 ruling in Navarette v. California, the U.S. Supreme Court declared that police officers, under the guise of “reasonable suspicion,” can stop cars and question drivers based solely on anonymous tips, no matter how dubious, and whether or not they themselves witnessed any troubling behavior. Then in State v. Howard, the Kansas Supreme Court declared that motorists who recline their car seats are guilty of suspicious behavior and can be subject to warrantless searches by police. That ruling, coupled with other court rulings upholding warrantless searches and seizures by police renders one’s car a Constitution-free zone.

Americans have no protection against mandatory breathalyzer tests at a police checkpoint, although mandatory blood draws violate the Fourth Amendment (Birchfield v. North Dakota). Police can also conduct sobriety and “information-seeking” checkpoints (Illinois v. Lidster and Mich. Dep’t of State Police v. Sitz).

Police can forcibly take your DNA, whether or not you’ve been convicted of a crime. In Maryland v. King, a divided U.S. Supreme Court determined that a person arrested for a crime who is supposed to be presumed innocent until proven guilty must submit to forcible extraction of their DNA. Once again the Court sided with the guardians of the police state over the defenders of individual liberty in determining that DNA samples may be extracted from people arrested for “serious” offenses. The end result of the ruling paves the way for a nationwide dragnet of suspects targeted via DNA sampling.

Police can use the “fear for my life” rationale as an excuse for shooting unarmed individuals. Upon arriving on the scene of a nighttime traffic accident, an Alabama police officer shot a driver exiting his car, mistakenly believing the wallet in his hand to be a gun. A report by the Justice Department found that half of the unarmed people shot by one police department over a seven-year span were “shot because the officer saw something (like a cellphone) or some action (like a person pulling at the waist of their pants) and misidentified it as a threat.”

Police have free reign to use drug-sniffing dogs as “search warrants on leashes.” In Florida v. Harris, a unanimous U.S. Supreme Court determined that police officers may use highly unreliable drug-sniffing dogs to conduct warrantless searches of cars during routine traffic stops. The ruling turns man’s best friend into an extension of the police state, provided the use of a K-9 unit takes place within a reasonable amount of time (Rodriguez v. United States).

Not only are police largely protected by qualified immunity, but police dogs are also off the hook for wrongdoing. The Fourth Circuit Court of Appeals ruled in favor of a police officer who allowed a police dog to maul a homeless man innocent of any wrongdoing.

Police can subject Americans to strip searches, no matter the “offense.” A divided U.S. Supreme Court actually prioritized making life easier for overworked jail officials over the basic right of Americans to be free from debasing strip searches. In its 5-4 ruling in Florence v. Burlington, the Court declared that any person who is arrested and processed at a jail house, regardless of the severity of his or her offense (i.e., they can be guilty of nothing more than a minor traffic offense), can be subjected to a strip search by police or jail officials, which involves exposing the genitals and the buttocks. This “license to probe” is now being extended to roadside stops, as police officers throughout the country have begun performing roadside strip searches—some involving anal and vaginal probes—without any evidence of wrongdoing and without a warrant.

Police can break into homes without a warrant, even if it’s the wrong home. In an 8-1 ruling in Kentucky v. King, the U.S. Supreme Court placed their trust in the discretion of police officers, rather than in the dictates of the Constitution, when they gave police greater leeway to break into homes or apartments without a warrant. Despite the fact that the police in question ended up pursuing the wrong suspect, invaded the wrong apartment and violated just about every tenet that stands between us and a police state, the Court sanctioned the warrantless raid, leaving Americans with little real protection in the face of all manner of abuses by police.

Police can use knock-and-talk tactics as a means of sidestepping the Fourth Amendment. Aggressive “knock and talk” practices have become thinly veiled, warrantless exercises by which citizens are coerced and intimidated into “talking” with heavily armed police who “knock” on their doors in the middle of the night. Andrew Scott didn’t even get a chance to say no to such a heavy-handed request before he was gunned down by police who pounded aggressively on the wrong door at 1:30 a.m., failed to identify themselves as police, and then repeatedly shot and killed the man when he answered the door while holding a gun in self-defense.

Police can carry out no-knock raids if they believe announcing themselves would be dangerous. Police can perform a “no-knock” raid as long as they have a reasonable suspicion that knocking and announcing their presence, under the particular circumstances, would be dangerous or futile or give occupants a chance to destroy evidence of a crime (Richards v. Wisconsin). Legal ownership of a firearm is also enough to justify a no-knock raid by police (Quinn v. Texas). For instance, a Texas man had his home subject to a no-knock, SWAT-team style forceful entry and raid based solely on the suspicion that there were legally-owned firearms in his household. The homeowner was actually shot by police through his closed bedroom door.

Police can recklessly open fire on anyone that might be “armed.” Philando Castile was shot and killed during a routine traffic stop allegedly over a broken tail light merely for telling police he had a conceal-and-carry permit. That’s all it took for police to shoot Castile four times in the presence of his girlfriend and her 4-year-old daughter. A unanimous Supreme Court declared in County of Los Angeles vs. Mendez that police should not be held liable for recklessly firing 15 times into a shack where a homeless couple had been sleeping because the grabbed his BB gun in defense, fearing they were being attacked.

Police can destroy a home during a SWAT raid, even if the owner gives their consent to enter and search it. In West v. Winfield, the Supreme Court provided cover to police after they smashed the windows of Shaniz West’s home, punched holes in her walls and ceilings, and bombed the house with so much tear gas that it was uninhabitable for two months. All of this despite the fact that the suspect they were pursuing was not in the house and West, the homeowner, agreed to allow police to search the home to confirm that.

Police can suffocate someone, deliberately or inadvertently, in the process of subduing them. “I can’t breathe” has become a rallying cry following the deaths of Eric Garner and George Floyd, both of whom died after being placed in a chokehold by police. Dozens more have died in similar circumstances at the hands of police who have faced little repercussions for these deaths.

As I make clear in my book Battlefield America: The War on the American People, we are dealing with a nationwide epidemic of court-sanctioned police violence carried out with impunity against individuals posing little or no real threat.

So what’s the answer to reforming a system that is clearly self-serving and corrupt?

Abolishing the police is not the answer: that will inevitably lead to outright anarchy, which will give the police state and those law-and-order zealots all the incentive it needs to declare martial law.

Looting and violence are not the answer: As Martin Luther King Jr. recognized, “A riot merely intensifies the fears of the white community while relieving the guilt.” Using the looting and riots as justification for supporting police brutality is also not the answer:  As King recognized, “It is not enough … to condemn riots… without, at the same time, condemning the contingent, intolerable conditions that exist in our society. These conditions are the things that cause individuals to feel that they have no other alternative than to engage in violent rebellions to get attention. And I must say tonight that a riot is the language of the unheard. And what is it America has failed to hear? It has failed to hear that the plight of the negro poor has worsened over the last twelve or fifteen years. It has failed to hear that the promises of freedom and justice have not been met. And it has failed to hear that large segments of white society are more concerned about tranquility and the status quo than about justice and humanity.”

Police reform is necessary and unavoidable if we are to have any hope of living in an America in which freedom means something more than the right to stay alive, but how we reform the system is just as important as getting it done.

We don’t need to wait for nine members of a ruling aristocracy who primarily come from privileged backgrounds and who have a vested interest in maintaining the status quo to fix what’s broken in America.

Nor do we need to wait for 535 highly paid politicians to do something about these injustices only when it suits their political ambitions

And we certainly don’t need to wait for a president with a taste for totalitarian tactics to throw a few crumbs our way.

This is as much a local problem as it is a national one.

Be fair. Be nonviolent. Be relentless in your pursuit of justice for all.

Let’s get it done.

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

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 debtcorporate 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.