Chicago’s Abu Ghraib

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By Andre Damon

Source: WSWS.org

In April 2004, the world was shocked and horrified by the release of photographs of sadistic torture carried out by US military personnel at the Abu Ghraib prison in Iraq. Detainees at the prison, most of them locked up for opposing the US military occupation, were beaten, tortured, sexually assaulted and killed.

At the time, the World Socialist Web Site explained that the crimes revealed in the photos and the psychology underlying them could be understood only in relation to the brutality of social relations in the United States, together with the dirty colonial aims of the war itself.

The WSWS further warned that “such a military, accompanied by a growing army of professional ‘civilian’ mercenaries, represents a danger not only to oppressed peoples in the Middle East, Central Asia and elsewhere, but to the democratic rights of the population in the US.”

A decade later, this assessment has been fully borne out. On Tuesday, the Guardian newspaper revealed the existence of what it describes as a “black site” on the West Side of Chicago, where police detain, beat and torture prisoners, while keeping their whereabouts secret from their families and attorneys.

The newspaper writes: “The Chicago police department operates an off-the-books interrogation compound, rendering Americans unable to be found by family or attorneys while locked inside what lawyers say is the domestic equivalent of a CIA black site.”

Among those detained at the facility was Brian Jacob Church, one of the “NATO 3” who were entrapped by Chicago police in 2012 in connection with protests against the US-led military alliance, which was meeting in Chicago.

Church was taken to the secret facility and handcuffed to a bench for 17 hours. Along with two other protestors, he was set up by police on terrorism charges and subsequently sentenced to five years in prison.

Vic Suter, another participant in the protests, said that she was taken to the facility and interrogated while shackled to a bench for eighteen hours before she was allowed to see a lawyer.

The Guardian writes that detainees taken to the facility report having been beaten and otherwise tortured by police. In 2013, one detainee was found unconscious in an interview room at the facility. He later died.

On Thursday, the Intercept corroborated the Guardian’s account, interviewing another torture victim at the facility who was handcuffed across a bench and hit in the face and groin until he agreed to provide false testimony to police.

The revelations follow the report last week by the Guardian that Richard Zuley, one of the lead torturers at the Guantanamo detention center, used similar techniques to secure false confessions from murder suspects when he was a detective with the Chicago Police Department.

Chicago has a long history of police violence. It is also the political home of Barack Obama and has been run since 2011 by Rahm Emanuel, Obama’s former White House chief of staff.

The Obama administration, far from repudiating the horrific and criminal actions of its predecessor, has deployed the apparatus of police violence ever more directly against the American people. A series of events has marked the increasingly open application within the borders of the United States of the murderous methods of the “war on terror” tested out and perfected in Afghanistan, Pakistan, Iraq, Libya, Syria, Somalia and Yemen.

· In September 2010, the Obama administration ordered raids on the homes of leaders of the Anti-War Committee and the Freedom Road Socialist Organization in Minneapolis and Chicago on charges of “providing material support to terrorism.”

· In May 2012, Chicago police arrested the “NATO 3,” charging them with conspiracy to commit terrorism.

· In March 2013, US Attorney General Eric Holder declared that the president had the right to kill American citizens without a trial or any legal due process, including within the borders of the United States.

· Just one month later, in April 2013, the city of Boston was placed under de facto martial law following the Boston Marathon bombings, with residents told to “shelter in place” while armored vehicles and helicopters patrolled the streets and police carried out warrantless house-to-house searches.

· In June 2014, the American Civil Liberties Union released a report entitled “War Comes Home: The Excessive Militarization of American Policing.” The ACLU reported that the Defense Department had transferred $4.3 billion in military hardware, including armored vehicles, helicopters, and belt-fed machine guns, to local police departments.

· In August 2014, the authorities responded to protests against the police murder of unarmed teenager Michael Brown with a military/police crackdown. Hundreds of peaceful protesters were arrested, shot with rubber bullets or exposed to tear gas, and over a dozen members of the press were detained.

The Obama administration is presently seeking a new Authorization for Use of Military Force, nominally to fight the Islamic State of Iraq and Syria (ISIS), but with no geographical boundaries defined. On Wednesday, three Brooklyn residents were arrested in connection with this new war on ISIS, clearly raising the potential for this second “war on terror” to become an occasion for police-military operations within the US “homeland.”

These developments express the growing convergence of militarism abroad with the attack on democratic rights within the US. What ties these two processes together are the class interests of the financial aristocracy and the criminal methods it employs in the defense of its wealth and power.

In pursuit of these aims, the ruling class seeks to mobilize the most backward and reactionary sections of the population, including sadistic prison guards and fascist-minded police detectives. But the ultimate responsibility for these crimes rests with forces at the highest levels of the state.

It is worth recalling that late last year the Senate released a report implicating the Bush administration in a brutal torture regime carried out at Guantanamo and CIA “black site” torture centers throughout the world. Far from anyone being held accountable for these crimes, those who ordered and carried them out have defended their actions, while the Obama administration has sought to block any prosecution of those responsible.

The actions of the ruling class express the character of American capitalism, which is based on parasitism, fraud, criminality and an economic order in deep decline. The American ruling class has no response to the crisis of its system and the inevitable growth of social opposition other than violence and repression.

Related Article:

Total Mainstream Media Blackout of Chicago Secret ‘Black Site’ at Homan Square (By Nick Bernabe, Antimedia.org)

Obama Incites Bloodshed in Venezuela

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By Nil Nikandrov

Source: Strategic Culture Foundation

The US special services together with their “assistants” from Canada and Great Britain tried again to stage a coup in Venezuela. In the middle of February, Venezuelan President Nicolas Maduro said the national security services frustrated the plans of US embassy and put an end to its hostile actions. As a result, a number of people were arrested, including Venezuelan air force officers and activists of radical opposition. The subversive activities were guided by Western diplomatic missions. The names of those behind the plot are known but they cannot be brought to justice being protected by diplomatic immunity. The President said the plotters wanted to assassinate him. The United States embassy guaranteed that the perpetrators would be granted asylum in America.

The Bolivarian National Intelligence Service (El Servicio Bolivariano de Inteligencia Nacional – SEBIN) had been warned about the conspiracy preparations. A Super Tucano aircraft (a light, highly agile Brazilian aircraft designed principally for pilot training and counterinsurgency operations) used before for special operations by Academi (former Blackwater), an American private military company, was handed over to plotters in the United States. The plane had the insignia of Venezuelan air force. It was armed and prepared to make a flight from Columbia to the island of Curacao where a US forward operating location is stationed. The CIA-recruited pilots, who betrayed the Bolivarian regime and their home country, learned well which targets they had to strike: the presidential palace, the buildings of ministries of Defense and General Staff and TV company TeleSUR. Security agencies found caches of arms, the equipment to provide guidance to the target and a video footage showing air force officers and opposition leaders involved in the plot addressing people. The video footage was given in Miami to journalist Patricia Poleo, a fierce opponent of the current Venezuelan government. She was to make it go on air but the plan was thwarted. The video material got into the hands of SEBIN operatives.

The video showed the plotters with balaclavas on their heads announcing the beginning of insurgency in the armed forces and the establishment of interim government. It was prepared to be made public by El Nacional newspaper at the time of coup. Three key figures of the Venezuelan opposition – Leopoldo López, the mayor of Caracas, Antonio Ledezma, the leader of Voluntad Popular (People’s Will) and former member of parliament Maria Corina Machado signed and distributed a joint communique on February 11, just one day before the planned coup plot that President Nicolas Maduro denounced was to take place. All these people were known to be close to the United States. Entitled “The Call for a National Transition Agreement,” the statement calls for unification of Venezuelans behind a national plan aimed at supplanting the current socialist administration of President Nicolas Maduro. It says the country was going through hardships unparalleled in its history. It is the fault of regime that has been trying for sixteen years to impose a failed system. In the text the current government is described as a “failed” “corrupt” and “inefficient” regime, made up of an “elite of no more 100 people” who have pilfered public funds “which could have been used for the benefit of all”. It also states that Venezuela is on the brink of a “humanitarian crisis” whilst the Maduro government is “delegitimised” and in its “terminal phase”. It says nothing about the hard struggle against the United States trying to overthrow the regime fallen out of its favor. In the effort to achieve the goal, the US uses all any methods without hesitation, including economic sabotage, subversive activities against oil and energy sectors, never ending information war, organizing street protests in big cities and the use of local criminals and Columbian paramilitaries to destabilize the situation in the country. The list also includes artificially created shortages of food and basic consumer goods. The operations against Salvador Allende in Chile come to mind. The US uses the same dirty methods in Venezuela. Waiting in line has become a common occurrence in Venezuelan cities since 2013. Different prices in Columbian and Venezuelan shops are one of the reasons. Almost everything is smuggled to Columbia – from super cheap gas to corn meal and sugar. To some extent the military called by President Maduro to fight the cross border smuggling helped to control the situation.

According to the plotters’ plans, Maria Corina Machado was to head the new government. She has been patronized by former US President George Bush Jr. The Machado’s three minute meeting in the White House with the President of the United States in March 2005 attracted unusually high attention of pro-US media. Maria was painted as the most promising politician able to defeat President Hugo Chavez and become a Venezuelan President absolutely loyal to the United States. The revelations about the Machado’s ties with US intelligence services spoiled the plans. She was the founder, former vice president, and former president of the Venezuelan volunteer civil organization Sumate that used US-provided funds. When it was revealed that Machado got large sums of money from special services, she had to keep away from spotlight. Today the United States needs her again. She is ready to go to any length in an effort to overthrow Nicolas Maduro. Washington wants her to lead the country.

The planning has been done. A group of pro-US Latin American presidents is carrying out the mission. Former Mexican President Felipe Calderón, former Chilean President Sebastian Piñera and former Colombia President Andres Pastrana came to the country under the pretext of expressing their support for Leopoldo López. The real purpose was to see the real situation in the country. Nicolas Maduro never stood in their way. He only said that these people came to support ultra-right wing radicals who do not recognize the government and call for a bloody coup. Maduro warned that the visitors would have their hands soaked in blood if they hobnob with this kind of people.

Of those who signed the statement Machado is the only one who is still at large. A year ago Leopoldo López was put behind bars for inciting street protests resulting in dozens of victims. Antonio Ledezma was detained a few days ago charged with involvement in coup attempt. The conditions of detainment are not so tough; he can continue the struggle against the Bolivarian regime. Recently he sent a letter to media outlets calling for continuing protests and peaceful struggle against Nicolas Maduro to make the current President resign. In the letter he stuck rigidly to the constitution. It says “We must keep up the struggle in the street, in a civil manner with the constitution in our hands and with the truth in front of us” Ledezma wrote. “They [the government] have the weapons but we have the ideas to unite the Venezuelan people. Violence is a pointless vacuum that leads nowhere.” He wants no mercy and calls for solidarity to protect democratic values in Venezuela. He stands out among Venezuelan politicians for his aggressive style and vindictiveness. It is suggested that if the plotters won, he would have headed the Interior Ministry to cleanse the national politics from Bolivarians, Chavistas and other elements hostile to the United States.

After the leading plotters were arrested and their ties with special services and embassies of the United States, Canada and Great Britain were revealed, Nicolas Maduro could say with certainty that another coup attempt orchestrated by Washington was effectively foiled. The tension in the relationship with the United States remains. In December 2014, President Obama endorsed sanctions against top officials of Venezuela accused by Washington of human rights violations. Maduro warned Americans that arbitrary sanctions and other attempts to exert pressure would deteriorate the bilateral relationship even further. He said the United States tried to stage coups in Venezuela a number of times. The US interference into the internal affairs of other countries has become a constant factor to negatively affect the situation in the world.

Jen Psaki, the spokesperson for the United States Department of State, as usually rejected all the accusations of US involvement into the conspiracy to organize a coup in Venezuela. “Well, I think we’ve seen continued accusations, no question, that are false and baseless. And our view continues to be that political transitions must be democratic, constitutional, peaceful, and legal. We do not support a political transition in Venezuela by non-constitutional means. We’re not promoting unrest in Venezuela, nor are we attempting to undermine Venezuela’s economy or its government. And this is a continued effort – ongoing, because I do feel like we talk about these incidents once a week at least – about – of the Venezuelan Government to try to distract attention from the country’s economic and political problems and focus and try to distract and make these false accusations.”

Meanwhile, the investigation continues. Nicolas Maduro says Antonio Ledezma tried to abuse his position to organize a violent coup and destabilize the country. New arrests are to follow. The government of Venezuela is adamant in its desire to prevent the events unfolding according to a scenario worked out by the United States Central Intelligence Agency.

Related Articles:

Obama Failed his Coup in Venezuela (By Thierry Meyssan, Voltairenet.org)

US Aggression Against Venezuela (By Eva Golinger, Counterpunch.org)

Venezuela in the Crosshairs (By Coromoto Jaraba, IntrepidReport.com)

Rollerball Amerika 2015

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By Philip A. Farruggio

Source: World News Trust

You must see or revisit Norman Jewison’s 1975 film Rollerball, starring James Caan as superstar player Jonathan E.

In it, we see a world no longer made up of countries, but of corporations that control every bit of life for the people. There are no longer wars, just a complacent populace who “go along to get along.”

A very select few are chosen by the corporations to become executives, giving them elite status. It seems everyone loves the violent sport Rollerball, which is like our current NFL football on steroids.

Jonathan E. is their Michael Jordan or Lebron James superplayer who is revered worldwide, even by the fans of opposing teams. He has everything a man could wish to have: a fine sprawling ranch, with servants and horses, and gorgeous female companions chosen for him by the Energy corporation that rules Houston and the surrounding areas.

Yet, even someone as popular and valued as he must sacrifice, such as when the corporation took away his wife and gave her to an executive. There is a scene in the film, when the highest corporation board decides they want Jonathan E. to retire due to the fear that his popularity has become too great. A man like that becomes too influential, thus too dangerous to control.

They send his ex wife, whom he still pines for, to visit him at his ranch and get him to agree to retire without any complications. They go for a walk and he expresses reservations about doing this. He tells her of his newfound epiphany about their society.

He knows now that the corporations long ago offered them all the choice between freedom and comfort… and the masses chose the latter. Her brief answer becomes the gist of the whole film: “Comfort IS freedom.”

And that is what we have here in 21st Century Amerika for many of our fellow citizens. The “Good German” lives on.

To study Nazi Germany in the early 40s allows us to see how the German public, to a great degree, was either apathetic or voluntarily blind as to what their regime was doing. Kristallnact was not an event that went unseen or even unheard about by multitudes of German citizens.

When the Wehrmacht invaded Russia along with the SS death squads, word did leak out through many soldiers of what had transpired. Even the most heinous of all crimes committed by the Nazis, the death camps AKA Concentration Camps, was not totally kept from the populace as many revisionists have always alleged. When tons of human hair and millions of personal effects were shipped back to companies in Germany, surely word got out.

We can, and we should forgive, the many Germans who did care about the terrible wrongs of their government at that time. Why? Well, it was a police state and dissent was stomped out rather brutally. Not everyone can be as heroic as Sophie Scholl and her brother and friends, to risk being tortured and finally beheaded.

Yet, there is this terrible pain that gnaws at this writer. That being the pain of realizing how many out there just do NOT give a shit unless it is happening to one of their own!

The late and great New Orleans district attorney Jim Garrison, who Oliver Stone centered his fine film JFK on, understood so much more than many of his peers in the 1960s. Years after his defeat in the case against Clay Shaw and others for the assassination of JFK, Garrison wrote this:

What worries me deeply is that we in America are in great danger of slowly evolving into a proto-fascist state. It will be a different kind of fascist state from the one of the Germans; theirs grew out of depression and promised bread and work, while ours is based on power and on the inability to put human goals and human conscience above the dictates of the state. It’s origins can be traced to the tremendous war machine we’ve built since 1945, the ‘Military Industrial Complex’ that Eisenhower vainly warned us against, which now dominates every aspect of our lives… In a very real and terrifying sense, our government IS the CIA and the Pentagon, with Congress reduced to a ‘debating society.'”

Cassius had said it most succinctly: “The fault dear Brutus is not in our stars but in our selves.”

(Philip A. Farruggio is son and grandson of Brooklyn, NYC longshoremen. He is a freelance columnist (found on Nation of Change Blog, Truthout.org, TheSleuthJournal.com, Worldnewstrust.com, The Intrepid Report, The Peoples Voice, Information Clearing house, Dandelion Salad, Activist Post, Dissident Voice and many other sites worldwide). Philip works as an environmental products sales rep and has been an activist leader since 2000. In 2010 he became a local spokesperson for the 25% Solution Movement to Save Our Cities by cutting military spending 25%. Philip can be reached at PAF1222@bellsouth.net)

The Matrix Is Real and How It Will Change All Of Our Lives

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By Paul Craig Roberts

Source: King World News

Americans are the most manipulated people in history. Since 2008, the economy has been manipulated for the benefit of a few oversized banks “too big to fail.” US foreign policy has been manipulated to serve the hegemonic agenda of a handful of neoconservatives. These manipulations have undercut the consumer basis of the US economy and have pushed the American people into a conflict situation with Russia and China.

Lies, US Economic Collapse And Nuclear War

US economic collapse and nuclear war are the two most likely outcomes of Washington’s manipulations of the American people. Time and again, the American public has fallen for transparent lies and orchestrated events. 2015 is a decisive year. Will a credulous people cast off their gullibility, or will they be swept away by economic collapse and war?

There are reasons to believe that the government’s manipulations have overreached and are crossing the point of believability, even on the part of credulous Americans. Let’s review some of these manipulations — first, economic, and then foreign policy.

Unemployment Number Is Meaningless

On January 9, the US government told Americans that the unemployment rate had fallen to a comforting 5.6 percent, an indication that the Federal Reserve’s policy of Quantitative Easing was successful in restoring the US economy. A 5.6 percent rate of unemployment suggests that Americans have a reasonable chance of finding a job. Yet we know there are millions of discouraged workers who have given up looking for a job.

The explanation of this paradox is that the 5.6 percent unemployment rate (U.3) does not include unemployed people who have not looked for a job in the previous four weeks. These unemployed are called “discouraged workers.” If they have been discouraged for less than one year, they are counted in a seldom-reported measure of unemployment (U.6). This rate stands at 11.2 percent, twice as high as the unemployment rate stressed by government and financial media.

The 11.2 percent rate is an official measure, but it is not publicized because it indicates a dismal employment outlook 5.5 years after the 2008 recession was declared over, in June 2009. What kind of recovery is it when the unemployment rate remains at 11.2 percent years after the recession has officially ended?

The Great Lie Exposed

The story worsens. The 11.2 percent rate does not include the millions of unemployed long-term discouraged workers (those discouraged for more than one year). Prior to 1994, the US Bureau of Labor Statistics counted the long-term discouraged as unemployed, and the government of Canada still does. John Williams (shadowstats.com) continues to include the long-term discouraged. When the long- term discouraged are added to the U.6 measure, the rate of unemployment again doubles, to 23 percent.

In other words, the actual unemployment rate is actually four times higher than the comforting figure released January 9.

Inflation Rate Also Falls Victim

The government engages in similar deception with the inflation rate. If the price of an item in the index rises, a lower-priced item is substituted, thus eliminating inflation by substitution. Inflation also is eliminated by redefining a price rise as a quality improvement.

By undercounting inflation, the government reports price increases as real economic growth, denies cost-of-living increases to Social Security recipients, and justifies paying savers negative real interest rates. These manipulations provide banks with free money, thus boosting bank profits while encouraging the stock market with “good news.”

Americans who search for jobs without success know other Americans in the same situation. As time passes, they learn from experience that the unemployment rate cannot be low and falling when jobs are harder to find. People who shop for food and pay utility bills know inflation is far higher than the government reports. Experience and the passage of time make the government’s numbers less and less believable.

Global Financial Markets Manipulated

The financial markets also are manipulated. To protect the dollar from declining in value due to its overproduction, the Federal Reserve’s bullion bank agents drive down the price of gold and silver by dumping uncovered shorts in the futures market. Since 2011, we have had the extraordinary situation in which the prices of gold and silver have been driven down despite strong demand and constraints on supply — a result that can be achieved only by manipulation in the futures market.

The dollar’s value also is manipulated by foreign central banks in cooperation with Washington. The Japanese and European central banks print yen and euros to protect the dollar’s exchange value. If all major currencies also are being printed, the dollar cannot decline.

The government’s Plunge Protection Team can prevent major stock-market corrections by stepping in and purchasing S&P futures, thus preventing the market’s overvaluation from bursting the bubble.

These manipulations are apparent to experienced investors. Sooner or later, attentive Americans will realize that the government’s deceit is not limited to the marketplace, but extends into foreign policy.

Fooled Over And Over Into War

Ever since the Clinton regime’s demonizations of Yugoslavia and Serbia, Americans have been deceived into supporting expensive wars and foreign-policy positions that are not in their interest. Washington’s demonizations of the Taliban, Osama bin Laden, Saddam Hussein, Gaddafi, Assad, Iran and of Muslims generally have resulted in 14 years of wars in which seven or eight countries have been invaded, bombed and attacked with drones. Increasingly, people at home and abroad understand these wars and bombings are based on lies and deceptions.

The destruction of countries and the massive human hurt happened because the US government lied and deceived.

There were no weapons of mass destruction in Iraq. Assad did not use chemical weapons in Syria. Gaddafi did not issue Viagra to his troops to assist in the rape of Libyan women. Iran does not have a nuclear- weapons program.

Millions of Muslims have been killed, maimed and dislocated by these wars, and tens of thousands of American soldiers have been killed and physically or psychologically maimed. The destruction of countries and the massive human hurt happened because the US government lied and deceived.

The most extraordinary aspect of the Charlie Hebdo event is that the French cartoonists are being championed in the name of free speech. Yet the Anglo-American world does not have free speech. Free speech, if it involves criticism or exposure of the government, is being redefined as “domestic extremism.” Criticism of Washington now implies that the critic is hostile to the public, a possible extremist who must be deterred before he inflicts harm on innocents. As Glenn Greenwald noted, try satirizing Israelis in the manner that Charlie Hebdo satirized Muslims, and you will find out how little free speech there is. http://bit.ly/1xYF93V Free speech is used to demonize Washington’s hand-picked enemies. That’s about as far as it goes.

Washington Demonizing Russia

As 2014 drew to a close, Washington was at work demonizing Russia and its president. Russia no more invaded Ukraine than Saddam Hussein had weapons of mass destruction. But despite years of experience with the government’s foreign-policy lies, polls show that more than 60 percent of the US population has fallen for Washington’s demonization of Russia.

We now have two decades of evidence that Washington uses demonization as a prelude to war. Russia and China, recognizing Washington’s intent to destabilize, have formed a strategic alliance. War with Russia and China would not be like war with Iraq and Libya, or drone attacks on Yemen and Pakistan. Unlike Saddam Hussein and Iran, Russia and China do have weapons of mass destruction — plenty of them.

Whereas Americans are not subject to any meaningful retaliation from Washington’s wars against Muslims, Washington’s aggressive warlike policy toward Russia and China, ringing both countries with military bases while demonizing both with false charges, threatens the life of every American and every person on earth. A threat of this magnitude could pull Americans out of their insouciance and force them to confront the government over its dangerous manipulations of public opinion.

Governments successful with their deceptions end up overreaching. The Charlie Hebdo affair possibly is an overreach. The Paris shootings have many characteristics of a false-flag operation. The attack on the cartoonists’ office was a disciplined professional attack associated with special forces; yet the suspects later corralled and killed seemed bumbling and unprofessional. It is like they were two different sets of people.

Is This Really The Official Story?

Muslim terrorists are usually prepared to die in the attack; yet the two professionals who hit Charlie Hebdo so hard escaped. Their identities were established by the unprofessional and unlikely act of leaving their identification in the getaway car. This reminds me of the undamaged passport miraculously found among the ruins of the two World Trade Center towers. The incriminating passport was the only undamaged item in the entire ruins and was the basis for identifying the 9/11 alleged hijackers.

It is a plausible inference that the ID left in the getaway car was the ID of one of the two brothers later killed by police, from whom we will never hear anything, and not the ID of the professionals who attacked Charlie Hebdo. An important fact that supports this inference is the report that the third suspect in the attack, Hamyd Mourad, the alleged driver of the getaway car, when seeing his name circulating on social media as a suspect, realized the danger he was in and quickly turned himself in to police for protection against being murdered by security forces as a terrorist.

Hamyd Mourad says he has an ironclad alibi. If so, this makes him the despoiler of a false-flag attack. If that is the case, he is likely to be coerced or tortured into some sort of confession to support the official story. http://bit.ly/1Aai8pJ

Mainstream Media Clueless

The American and European media have ignored this important story. I googled Hamyd Mourad and all I found (January 12) was the main US and European media reporting that the third suspect had turned himself in. The news was reported in a fashion that gave credence to the accusation that the suspect who turned himself in was part of the attack. Not a single US mainstream media source reported that the alleged suspect turned himself in because he had an ironclad alibi. The list of sources that reported Mourad’s turning himself in to police report in a way that can be read as confirmation of his guilt.

Some merely reported it in a headline with no coverage in the report. The list of those I googled includes:

• The Washington Post (January 7, by Griff Witte and Anthony Faiola)

• Die Welt (Germany), “One suspect has turned himself in to police in connection with Wednesday’s massacre at the offices of Parisian satirical magazine, Charlie Hebdo”

• ABC News (January 7), “Youngest suspect in Charlie Hebdo Attack turns himself in”

• CNN (January 8), “Citing sources, the Agence France Presse news agency reported that an 18-year- old suspect in the attack had surrendered to police.”

High-Ranking Police Official Suddenly Commits Suicide?

Another puzzle in the official story that remains unreported, according to my 6 p.m. Google search on January 12, is the alleged suicide of a high-ranking member of the French Judicial Police who had a lead role in the Charlie Hebdo investigation. For unknown reasons, a police official involved in the most important investigation of a lifetime decided to kill himself in his police office in the middle of the night while writing his report on his investigation. The alternative media reports it: http://bit.ly/1xc8W1W So did the UK Telegraph. But no suspicion is seen in the police official’s death, and as far as the US “presstitute” media is concerned, it did not happen. There are no reports, domestic or foreign, at the time of writing, about his death and whether his report has disappeared.

Media Cloaks The Lies And Crimes Of Government

As Gerald Celente has pointed out for years and as Patrick L. Smith writes in CounterPunch (Vol. 21, No. 10, 2014), the media serve as presstitutes. The media justify withholding information from the public on the basis of patriotism. Patriotism requires the media to support the government, not the truth. Patrick Smith quotes former New York Times editor Jill Abramson, who says in defense of the New York Times misleading the American people: “Journalists are Americans, too. I consider myself to be a patriot.” Of course, journalists lie to us because their careers are controlled by government and corporations dependent on government. Patriotism has little to do with it, but it serves as a cover. Patriotism is like “national security,” a cloak for the lies and crimes of government.

Life In The Matrix

Here we have it. The media lie to us because they are patriots. We believe the lies because we are patriots. More likely, the fact of the matter might be that both the media and the people are morally and spiritually corrupt.

In other words, we willfully live in The Matrix and are our own worst enemy.

Malcolm X Was Right About America

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(Editors note: Tomorrow marks the 50th anniversary of the passing of Malcolm X. The venerated activist would surely have approved of Hedges’ radical appraisal of his philosophy and principles.)

By Chris Hedges

Source: Axis of Logic

Malcolm X, unlike Martin Luther King Jr., did not believe America had a conscience. For him there was no great tension between the lofty ideals of the nation—which he said were a sham—and the failure to deliver justice to blacks. He, perhaps better than King, understood the inner workings of empire. He had no hope that those who managed empire would ever get in touch with their better selves to build a country free of exploitation and injustice. He argued that from the arrival of the first slave ship to the appearance of our vast archipelago of prisons and our squalid, urban internal colonies where the poor are trapped and abused, the American empire was unrelentingly hostile to those Frantz Fanon called “the wretched of the earth.” This, Malcolm knew, would not change until the empire was destroyed.

“It is impossible for capitalism to survive, primarily because the system of capitalism needs some blood to suck,” Malcolm said. “Capitalism used to be like an eagle, but now it’s more like a vulture. It used to be strong enough to go and suck anybody’s blood whether they were strong or not. But now it has become more cowardly, like the vulture, and it can only suck the blood of the helpless. As the nations of the world free themselves, then capitalism has less victims, less to suck, and it becomes weaker and weaker. It’s only a matter of time in my opinion before it will collapse completely.”

King was able to achieve a legal victory through the civil rights movement, portrayed in the new film “Selma.” But he failed to bring about economic justice and thwart the rapacious appetite of the war machine that he was acutely aware was responsible for empire’s abuse of the oppressed at home and abroad. And 50 years after Malcolm X was assassinated in the Audubon Ballroom in Harlem by hit men from the Nation of Islam, it is clear that he, not King, was right. We are the nation Malcolm knew us to be. Human beings can be redeemed. Empires cannot. Our refusal to face the truth about empire, our refusal to defy the multitudinous crimes and atrocities of empire, has brought about the nightmare Malcolm predicted. And as the Digital Age and our post-literate society implant a terrifying historical amnesia, these crimes are erased as swiftly as they are committed.

“Sometimes, I have dared to dream … that one day, history may even say that my voice—which disturbed the white man’s smugness, and his arrogance, and his complacency—that my voice helped to save America from a grave, possibly even fatal catastrophe,” Malcolm wrote.

The integration of elites of color, including Barack Obama, into the upper echelons of institutional and political structures has done nothing to blunt the predatory nature of empire. Identity and gender politics—we are about to be sold a woman president in the form of Hillary Clinton—have fostered, as Malcolm understood, fraud and theft by Wall Street, the evisceration of our civil liberties, the misery of an underclass in which half of all public school children live in poverty, the expansion of our imperial wars and the deep and perhaps fatal exploitation of the ecosystem. And until we heed Malcolm X, until we grapple with the truth about the self-destruction that lies at the heart of empire, the victims, at home and abroad, will mount. Malcolm, like James Baldwin, understood that only by facing the truth about who we are as members of an imperial power can people of color, along with whites, be liberated. This truth is bitter and painful. It requires an acknowledgment of our capacity for evil, injustice and exploitation, and it demands repentance. But we cling like giddy children to the lies we tell ourselves about ourselves. We refuse to grow up. And because of these lies, perpetrated across the cultural and political spectrum, liberation has not taken place. Empire devours us all.

“We’re anti-evil, anti-oppression, anti-lynching,” Malcolm said. “You can’t be anti- those things unless you’re also anti- the oppressor and the lyncher. You can’t be anti-slavery and pro-slavemaster; you can’t be anti-crime and pro-criminal. In fact, Mr. Muhammad teaches that if the present generation of whites would study their own race in the light of true history, they would be anti-white themselves.”

Malcolm once said that, had he been a middle-class black who was encouraged to go to law school, rather than a poor child in a detention home who dropped out of school at 15, “I would today probably be among some city’s professional black bourgeoisie, sipping cocktails and palming myself off as a community spokesman for and leader of the suffering black masses, while my primary concern would be to grab a few more crumbs from the groaning board of the two-faced whites with whom they’re begging to ‘integrate.’ ”

Malcolm’s family, struggling and poor, was callously ripped apart by state agencies in a pattern that remains unchanged. The courts, substandard schooling, roach-filled apartments, fear, humiliation, despair, poverty, greedy bankers, abusive employers, police, jails and probation officers did their work then as they do it now. Malcolm saw racial integration as a politically sterile game, one played by a black middle class anxious to sell its soul as an enabler of empire and capitalism. “The man who tosses worms in the river,” Malcolm said, “isn’t necessarily a friend of the fish. All the fish who take him for a friend, who think the worm’s got no hook on it, usually end up in the frying pan.” He related to the apocalyptic battles in the Book of Revelation where the persecuted rise up in revolt against the wicked.

“Martin [Luther King Jr.] doesn’t have the revolutionary fire that Malcolm had until the very end of his life,” Cornel West says in his book with Christa Buschendorf, “Black Prophetic Fire.” “And by revolutionary fire I mean understanding the system under which we live, the capitalist system, the imperial tentacles, the American empire, the disregard for life, the willingness to violate law, be it international law or domestic law. Malcolm understood that from very early on, and it hit Martin so hard that he does become a revolutionary in his own moral way later in his short life, whereas Malcolm had the revolutionary fire so early in his life.”

There are three great books on Malcolm X: “The Autobiography of Malcolm X: As Told to Alex Haley,” “The Death and Life of Malcolm X” by Peter Goldman and “Martin & Malcolm & America: A Dream or a Nightmare” by James H. Cone.

On Friday I met Goldman—who as a reporter for a St. Louis newspaper and later for Newsweek knew and covered Malcolm—in a New York City cafe. Goldman was part of a tiny circle of white reporters Malcolm respected, including Charles Silberman of Fortune and M.S. “Mike” Handler of The New York Times, who Malcolm once said had “none of the usual prejudices or sentimentalities about black people.”

Goldman and his wife, Helen Dudar, who also was a reporter, first met Malcolm in 1962 at the Shabazz Frosti Kreem, a Black Muslim luncheonette in St. Louis’ north-side ghetto. At that meeting Malcolm poured some cream into his coffee. “Coffee is the only thing I liked integrated,” he commented. He went on: “The average Negro doesn’t even let another Negro know what he thinks, he’s so mistrusting. He’s an acrobat. He had to be to survive in this civilization. But by me being a Muslim, I’m black first—my sympathies are black, my allegiance is black, my whole objectives are black. By me being a Muslim, I’m not interested in being American, because America has never been interested in me.”

He told Goldman and Dudar: “We don’t hate. The white man has a guilt complex—he knows he’s done wrong. He knows that if he had undergone at our hands what we have undergone at his, he would hate us.” When Goldman told Malcolm he believed in a single society in which race did not matter Malcolm said sharply: “You’re dealing in fantasy. You’ve got to deal in facts.”

Goldman remembered, “He was the messenger who brought us the bad news, and nobody wanted to hear it.” Despite the “bad news” at that first meeting, Goldman would go on to have several more interviews with him, interviews that often lasted two or three hours. The writer now credits Malcolm for his “re-education.”

Goldman was struck from the beginning by Malcolm’s unfailing courtesy, his dazzling smile, his moral probity, his courage and, surprisingly, his gentleness. Goldman mentions the day that psychologist and writer Kenneth B. Clark and his wife escorted a group of high school students, most of them white, to meet Malcolm. They arrived to find him surrounded by reporters. Mrs. Clark, feeling that meeting with reporters was probably more important, told Malcolm the teenagers would wait. “The important thing is these kids,” Malcolm said to the Clarks as he called the students forward. “He didn’t see a difference between white kids and kids,” Kenneth Clark is quoted as saying in Goldman’s book.

James Baldwin too wrote of Malcolm’s deep sensitivity. He and Malcolm were on a radio program in 1961 with a young civil rights activist who had just returned from the South. “If you are an American citizen,” Baldwin remembered Malcolm asking the young man, “why have you got to fight for your rights as a citizen? To be a citizen means that you have the rights of a citizen. If you haven’t got the rights of a citizen, then you’re not a citizen.” “It’s not as simple as that,” the young man answered. “Why not?” Malcolm asked.

During the exchange, Baldwin wrote, “Malcolm understood that child and talked to him as though he was talking to a younger brother, and with that same watchful attention. What most struck me was that he was not at all trying to proselytize the child: he was trying to make him think. … I will never forget Malcolm and that child facing each other, and Malcolm’s extraordinary gentleness. And that’s the truth about Malcolm: he was one of the gentlest people I have ever met.”

“One of Malcolm’s many lines that I liked was ‘I am the man you think you are,’ ” Goldman said. “What he meant by that was if you hit me I would hit you back. But over the period of my acquaintance with him I came to believe it also meant if you respect me I will respect you back.”

Cone amplifies this point in “Martin & Malcolm & America”:

Malcolm X is the best medicine against genocide. He showed us by example and prophetic preaching that one does not have to stay in the mud. We can wake up; we can stand up; and we can take that long walk toward freedom. Freedom is first and foremost an inner recognition of self-respect, a knowledge that one was not put on this earth to be a nobody. Using drugs and killing each other are the worst forms of nobodyness. Our forefathers fought against great odds (slavery, lynching, and segregation), but they did not self-destruct. Some died fighting, and others, inspired by their example, kept moving toward the promised land of freedom, singing ‘we ain’t gonna let nobody turn us around.’ African-Americans can do the same today. We can fight for our dignity and self-respect. To be proud to be black does not mean being against white people, unless whites are against respecting the humanity of blacks. Malcolm was not against whites; he was for blacks and against their exploitation.

Goldman lamented the loss of voices such as Malcolm’s, voices steeped in an understanding of our historical and cultural truths and endowed with the courage to speak these truths in public.

“We don’t read anymore,” Goldman said. “We don’t learn anymore. History is disappearing. People talk about living in the moment as if it is a virtue. It is a horrible vice. Between the twitterverse and the 24-hour cable news cycle our history keeps disappearing. History is something boring that you had to endure in high school and then you are rid of it. Then you go to college and study finance, accounting, business management or computer science. There are damn few liberal arts majors left. And this has erased our history. The larger figure in the ’60s was, of course, King. But what the huge majority of Americans know about King is [only] that he made a speech where he said ‘I have a dream’ and that his name is attached to a day off.”

Malcolm, like King, understood the cost of being a prophet. The two men daily faced down this cost.

Malcolm, as Goldman writes, met with the reporter Claude Lewis not long before his Feb. 21, 1965, murder. He had already experienced several attempts on his life.

“This is an era of hypocrisy,” he told Lewis. “When white folks pretend that they want Negroes to be free, and Negroes pretend to white folks that they really believe that white folks want ’em to be free, it’s an era of hypocrisy, brother. You fool me and I fool you. You pretend that you’re my brother, and I pretend that I really believe you believe you’re my brother.”

He told Lewis he would never reach old age. “If you read, you’ll find that very few people who think like I think live long enough to get old. When I say by any means necessary, I mean it with all my heart, my mind and my soul. A black man should give his life to be free, and he should also be able, be willing to take the life of those who want to take his. When you really think like that, you don’t live long.”

Lewis asked him how he wanted to be remembered. “Sincere,” Malcolm said. “In whatever I did or do. Even if I made mistakes, they were made in sincerity. If I’m wrong, I’m wrong in sincerity. I think that the best thing that a person can be is sincere.”

“The price of freedom,” Malcolm said shortly before he was killed, “is death.”

The Soft Drink That Conquered the World

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Environmental historian Bartow J. Elmore discusses the global consequences of ‘Coca-Cola capitalism.’

By Elaina Koros

Source: USnews.com

From its origins as a patent medicine formulated in a small southern pharmacy, Coca-Cola has grown into a multibillion-dollar company. Headquartered in Atlanta, it possesses one of the world’s most valuable brands. Yet despite its exponential growth over the decades, Coca-Cola has kept its operations streamlined by relying on partnerships with commercial titans like Monsanto and integrating its manufacturing plants with public water and recycling infrastructures, explains Bartow J. Elmore, an environmental historian at the University of Alabama. In his new book, “Citizen Coke: The Making of Coca-Cola Capitalism,” he argues that this business model, though widespread and successful, has global environmental consequences in the modern age. Elmore recently spoke with U.S. News about the sustainability and applicability of what he calls “Coca-Cola capitalism.” Excerpts:

What inspired you to write this book?

I grew up in Atlanta, born and raised on the syrupy Coke soft drink. Seeing this product that was from my hometown end up everywhere, I wondered how [something] that had started in the Jim Crow South in 1886 ended up all over the world. As someone who was interested in environmental history, I was particularly interested in answering that question from a materials standpoint. Beyond the advertising and marketing, how did the company acquire the natural resources it needed to put its product on retail shelves around the globe?

What is Coca-Cola’s business model?

I call the model Coca-Cola capitalism. I’d say what makes Coke great is not so much what Coke does, but what it doesn’t do. Coca-Cola embeds itself in systems of production and distribution that it doesn’t own. Coke didn’t own sugar plantations. It didn’t own caffeine processing plants. It didn’t own bottling businesses for most of its history. [Instead, it] relied on a host of independent businesses to supply its needs and to distribute its products.

How are Coke operations impacting the environment globally?

Coke is expanding into increasingly arid regions of the developing world, and that’s in part because Coke is going to places where there aren’t the same kinds of health concerns that there are in the United States. Unfortunately, that means they’re extracting water from places that don’t have a great deal of water to spare.

I think of the human body as part of the environment, and I end the book by explaining how the stomach has become a kind of silo, a storage unit for Coke’s excess. In a nation where more than 30 percent of people are obese today, this is a hot issue for Coca-Cola.

How has Coke’s expansion impacted other companies and the public?

One great example is Monsanto. You wouldn’t have a chemical company like Monsanto without Coke, because Coke in the early 20th century bought all of Monsanto’s main product, which was saccharin, an artificial sweetener. If you go to the Monsanto website, they say that in 1903 and 1905, without Coca-Cola’s massive purchases of their saccharin, they would not exist. I think that’s true of a lot of companies. It’s amazing how many businesses Coke has kept alive through its huge purchasing contracts.

When I say that Coca-Cola capitalism involves partnering with people, that often means the government. I think two good examples of this are public water supplies and recycling. Coke, throughout its history, depended on bottlers who tapped into the public water supply to access 80 percent of what they sold to consumers, which was water, 80 percent of the finished product. In the early 20th century, cities and even the federal government participated in building this infrastructure, spending billions of dollars to bring fresh, clean water to cities and increasingly to rural areas of the country. So, what made Coke expand so rapidly was that it was able to tap into that government infrastructure.

The other example would be recycling. If you look at the history, you see that Coca-Cola and its industry partners lobbied heavily in Congress to try and get curbside recycling to be the solution to the nation’s litter problem. Why not have you and I, the regular taxpayer, pay for that infrastructure and, in a way, conveniently bring the company’s packaging back to the company?

How would you curb some of the negative effects of Coke’s operations and products?

One thing is to make companies pay for the pollution they generate. If we don’t like litter, then we should force corporations to realize that by putting a price tag on it. I would say the same thing goes for obesity. If we think that these products contribute to really expensive health costs like obesity, then let’s make these corporations change. They’ll find ways to respond to the pressures that people put on them.

Life in the Algorithm

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By Douglas Haddow

Source: Adbusters

The searches we make, the news we read, the dates we go on, the advertisements we see, the products we buy and the music we listen to. The stock market. The surveillance society. The police state, and the drones. All guided by a force we never see and few understand.

A series of calculation procedures that come together to constitute capitalism’s secret ingredient — the all holy algorithm, that which binds and optimizes. Those strange numerical gods who decide whether or not you’re a terrorist and what kids’ toy is going to set the market on fire this Christmas. But what are they, where did they come from and how did they get so powerful?

Algorithms are not new. You can trace their origin all the way back to a 9th century Persian mathematician by the name of Muhammad ibn Musa al–Khwarizmi (Algoritmi in Latin) from whom the word derives its name. Then there was Abu Yusaf Ya’qub ibn Ishaq al–Kindi, a contemporary of al–Khwarizmi’s at Baghdad’s House of Wisdom. He discovered and developed the science of frequency analysis, or code–breaking, providing a basis for code breaker Alan Turing to develop his Turing Machine, the theoretical prototype for the 9 billion devices currently sending and receiving signals through the Internet.

When we talk about algorithms, when they come up in conversation, often tied to latent and emerging fears, we’re not talking about the mathematical models behind them, we’re talking about the models that the models were modeled on. Most people have never heard of a polytope, Boolean Logic or the Hirsch Conjecture. But everyone has a credit score, whether they like it or not.

If we want to interrogate the true nature of these numbers, the wizard behind the ghost in the machine, we need to look no further than Adam Smith, that dour Scot who lived with his mum and accidentally created the modern world.

Smith was neither a modernist nor a cosmopolitan. He was an absent’minded hermit who never married, had few friends, suffered from alternating fits of depression and hypochondria, travelled outside Britain on just one occasion and demanded that all his personal writing be burned upon his death. He was the supreme king of unintended consequences, a humble and misunderstood moral philosopher who became the patron saint of greed.

Most famously, and most tragically, Smith was an ambitious writer who got a bit flowery with his language on occasion, and, as a result, his entire legacy was reduced to two words: invisible and hand. As in, the Invisible Hand — that mysterious market force that secretly and surreptitiously guides all our actions and decisions. Or so we’ve been told.

In The Wealth of Nations, the blueprint for what became known as capitalism, Smith drops the phrase but once. It’s situated in a rather dry discussion on trade policy and is used as a metaphor in a straightforward critique of mercantilism’s excessive restrictions.

And that’s it. Just a cursory metaphor used for poetic flourish in an otherwise obscure and forgettable passage. And for the 150 years that followed the book’s publication, that’s exactly what it was — obscure and forgotten. Smith didn’t mention it, his contemporaries didn’t mention it, nor did his critics. Nary a soul on Earth repeated those two words or paid them any heed.

That is, until 1948, when everything changes.

If you look at a Google NGRAM chart of “invisible hand,” you’ll see that there was little to no interest in the phrase up until the 1930s and ’40s, at which point it begins to bubble up a bit, gaining traction in a few peripheral spheres here and there. Then in ’48, Chicago School economist Paul Samuelson writes a book called Economics: An Introductory Analysis, which would go on to become the best–selling economics book of all time.

In his book, Samuelson grabs hold of Smith’s wordplay and freebases meaning from it until a mere metaphor mutates into the economic doctrine that would define the shape and form of global finance for the remainder of the century, and beyond.

“Every individual, in pursuing only his own selfish good, was led, as if by an invisible hand, to achieve the best good for all, so that any interference with free competition by government was almost certain to be injurious,” writes Samuelson. And with that, not only is it justifiable to be callous in the pursuit of wealth, your callousness will somehow, vis–à–vis the invisible hand, uplift those you trample on your way to the top.

Picture Gordon Gekko, hair trickling with high–end product, walking with the gait of limitless sprezzatura, saying, “Greed is right, greed works. Greed clarifies, cuts through and captures the essence of the evolutionary spirit. Greed, in all of its forms; greed for life, for money, for love, knowledge has marked the upward surge of mankind.”

Samuelson would later go on to regret the liberties he took with Smith’s words, but the meme had already been injected into the passive hive mind of economics. What followed was a long and tangled game of economic telephone wherein Smith’s fatalistic conceit gradually took on mythical qualities. From turn of phrase to doctrine, from doctrine to dogma, from dogma to metaphysical law. The invisible hand became the celestial justification of the free market and the economic rationalist’s negation of anything that stood in its way.

Austrian economist Friedrich Hayek even went so far as to develop an entire theory of human interaction based on the myth. It was called Catallactics, and proposed that we did not live within an economy, but rather, a Catallaxy — a complex and self–organizing system in which every individual sent out a constant stream of complex signals that mixed to create overall market behavior.

Knowledge, Hayek argued, was distributed on an individual level, each person containing their own fraction of the whole.

The vast repository of human knowledge was inherently decentralized. Because of this, no central body or government agency could ever hope to contain enough of it to know what was really going on. But if allowed to move freely without meddling, these messages would come together to create order and equilibrium in the market.

This, he argued, is why the government should never meddle in the market. And why order could never be “planned,” and was instead “brought about by the mutual adjustment of many individual economies in a market.” As long as the signals, our private info–snowflakes, could float freely, the market would reach equilibrium.

Through Hayek, dogma became revelation — the invisible hand was not merely a magical presence promising equilibrium, it was also pointing us toward a not–too–distant utopia. And if we didn’t follow the hand? Oppression and despair would follow mankind into a dark hole of tyranny.

Hayek’s ideas spread swiftly through a series of think tanks connected to his economic clique, The Mont Pelerin Society, which counted Karl Popper, Ludwig von Mises and, of course, who else but Milton Friedman among its members. Together they successfully launched what we now call “neoliberalism” into the political consciousness.

Neoliberalism found its champions in Margaret Thatcher and Ronald Reagan. Thatcher regularly corresponded with Hayek and used the slogan There Is No Alternative (TINA) to explain her affection for its concepts. Reagan hired Friedman to be his economic advisor. And together they carried out an economic revolution that smashed trade unions and deregulated and privatized anything and everything that could be guillotined. From this axis of Anglos, it spread to other parts of the Commonwealth, then to Europe, Asia, South America and beyond.

But no matter how much they stripped away government meddling, somehow the “abstract signals” still weren’t getting through. The hand remained clenched and crises endemic. Asia, Argentina, the Eurozone, the 2008 meltdown, the flash crash. The market continually failing to magically self–correct and achieve equilibrium.

The faithful kept their faith and stuck to the program. The crisis, both economic and existential, were met with a recommitment to the faith in the form of austerity and technology and the dream persisted.

The problem was obvious to anyone outside the neoliberal thought–bubble: the invisible hand wasn’t real and it didn’t exist. It never had existed. It wasn’t just invisible, but immaterial, made from the twisted fantasies of economists obsessed with achieving an impossible “equilibrium.” You couldn’t touch it, and it couldn’t touch you.
Until now.

In 2010, when the Dow Jones Industrial dropped 1000 points in under a minute, the biggest one–day point decline in history, it received far less attention then it deserved, because everything returned to normal a few seconds later. Now, miniature flash crashes occur constantly throughout the day. But this crash was a turning point, demonstrating that something had changed. That something was that the neoliberals had achieved what communists, socialists and Christians never could: they made their god real, and in doing so, achieved their utopia. They just didn’t let the rest of us in on it.

The critical flaw in Hayek’s vision of the hand was that a “central body” could never gather enough information. We know this to be untrue, and with big data and the analysis and manipulation of that data through algorithmic equation, the missing link between money and the machine was discovered.

The searches we make, the news we read, the dates we go on, the advertisements we see, the products we buy and the music we listen to. The stock market … All informed by this marriage between mathematics and capital, all working together in perfect harmony to achieve a singular goal — equilibrium. But it’s a curious sort of equilibrium. Less to do with the relationship between supply and demand, and more about the man and the market.

All these algorithms we encounter throughout the day, they’re working toward a greater goal: solving problems and learning how to think. Like the advent and rise of high–frequency trading, they’re part of an optimization trend that leads to a strange brand of perfection: automated profit.

And their current day use, no matter how impressive the specs, is still rooted in 7th century code–breaking. Only now it’s about breaking our individual codes. Throughout the day we send out thousands of our own individual abstract signals and the algorithms figure out how best to streamline our existence into the market’s needs. We’re all just cyphers waiting to get cracked.

This is not the stuff of Orwell and Huxley, but Amazon and the NSA.

There is an overwhelming feeling of inevitability surrounding all of this. With computational capacity still threatening to double every two years, the algorithmic estate will continue to expand and become more sophisticated. All of this development, testing and research is leading to a predictable outcome. Given that they are leading investment and research in the sector, Wall Street financiers will develop the world’s first fully functioning Artificial Intelligence.

If any of this feels inevitable, it’s because it was designed to make us feel that way. If the algorithms that organize the world of money were turned on their head and used to analyze the defects in their guiding philosophy, they would shred it all on one razor sharp fact: the world beyond the market is still a real one. And no matter how sophisticated the math, how brilliant the AI, we will always be living in it.

Outside of The Wealth of Nations, Smith employed the Invisible Hand concept on only two other occasions. Once in his Theory of Moral Sentiments, where he slags off the rich, and the other in the History of Astronomy, where he says:

For it may be observed, that in all Polytheistic religions, among savages, as well as in the early ages of Heathen antiquity, it is the irregular events of nature only that are ascribed to the agency and power of their gods. Fire burns, and water refreshes; heavy bodies descend, and lighter substances fly upwards, by the necessity of their own nature; the invisible hand of Jupiter was never apprehended to be employed in those matters.

These days, the “savages” kick back, polish their yachts and let the machines do their thinking for them. Their god is a primitive and cruel one. Worse yet, it lacks imagination. The future it sees is just an optimized version of the present. Everything that falls within its gaze is predictable, because mathematical sequences are predictable. What remains to be seen is whether or not human beings are as predictable as the machines think we are.

The Global De-dollarization and the US Policies

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By Vladimir Odintsov

Source: New Eastern Outlook

In its quest for world domination, which the White House has been pursuing for more than a century, it relied on two primary tools: the US dollar and military might. In order to prevent Washington from establishing complete global hegemony, certain countries have recently been revising their positions towards these two elements by developing alternative military alliances and by breaking with their dependence on the US dollar.

Until the mid-twentieth century, the gold standard was the dominant monetary system, based on a fixed quantity of gold reserves stocked in national banks, which limited lending. At that time, the United States managed to become the owner of 70% of world’s gold reserves (excluding the USSR), therefore it pushed its weakened competitor, the UK, aside resulting to the creation of the Bretton Woods financial system in 1944. That’s how the US dollar became the predominant currency for international payments.

But a quarter century later this system had proven ineffective due to its inability to contain the economic growth of Germany and Japan, along with the reluctance of the US to adjust its economic policies to maintain the dollar-gold balance. At that time, the dollar experienced a dramatic decline but it was saved by the support of rich oil exporters, especially once Saudi Arabia began to exchange its black gold for US weapons and support in talks with Richard Nixon. As a result, President Richard Nixon in 1971 unilaterally ordered the cancellation of the direct convertibility of the United States dollar to gold, and instead he established the Jamaican currency system in which oil has become the foundation of the US dollar system. Therefore, it’s no coincidence that from that moment on the control over oil trade has become the number one priority of Washington’s foreign policy. In the aftermath of the so-called Nixon Shock the number of US military engagements in the Middle East and other oil producing regions saw a sharp increase. Once this system was supported by OPEC members, the global demand for US petrodollars hit an all time high. Petrodollars became the basis for America domination over the global financial system which resulted in countries being forced to buy dollars in order to get oil on the international market.

Analysts believe that the share of the United States in today’s world gross domestic product shouldn’t exceed 22%. However, 80% of international payments are made with US dollars. As a result, the value of the US dollar is exceedingly high in comparison with other currencies, that’s why consumers in the United States receive imported goods at extremely low prices. It provides the United States with significant financial profit, while high demand for dollars in the world allows the US government to refinance its debt at very low interest rates.

Under these circumstances, those hedging against the dollar are considered a direct threat to US economic hegemony and the high living standards of its citizens, and therefore political and business circles in Washington attempt by all means to resist this process. This resistance manifested itself in the overthrow and the brutal murder of Libyan leader Muammar Gaddafi, who decided to switch to Euros for oil payments, before introducing a gold dinar to replace the European currency.

However, in recent years, despite Washington’s desire to use whatever means to sustain its position within the international arena, US policies are increasingly faced with opposition. As a result, a growing number of countries are trying to move from the US dollar along with its dependence on the United States, by pursuing a policy of de-dollarization. Three states that are particularly active in this domain are China, Russia and Iran. These countries are trying to achieve de-dollarization at a record pace, along with some European banks and energy companies that are operating within their borders.

The Russian government held a meeting on de-dollarization in spring of 2014, where the Ministry of Finance announced the plan to increase the share of ruble-denominated contracts and the consequent abandonment of dollar exchange. Last May at the Shanghai summit, the Russian delegation manged to sign the so-called “deal of the century” which implies that over the next 30 years China will buy $ 400 billion worth of Russia’s natural gas, while paying in rubles and yuans. In addition, in August 2014 a subsidiary company of Gazprom announced its readiness to accept payment for 80,000 tons of oil from Arctic deposits in rubles that were to be shipped to Europe, while the payment for the supply of oil through the “Eastern Siberia – Pacific Ocean” pipeline can be transferred in yuans. Last August while visiting the Crimea, Russia’s President Vladimir Putin announced that “the petrodollar system should become history” while “Russia is discussing the use of national currencies in mutual settlements with a number of countries.” These steps recently taken by Russia are the real reasons behind the West’s sanction policy.

In recent months, China has also become an active member of this “anti-dollar” campaign, since it has signed agreements with Canada and Qatar on national currencies exchange, which resulted in Canada becoming the first offshore hub for the yuan in North America. This fact alone can potentially double or even triple the volume of trade between the two countries since the volume of the swap agreement signed between China and Canada is estimated to be a total of 200 billion yuans.

China’s agreement with Qatar on direct currency swaps between the two countries are the equivalent of $ 5.7 billion and has cast a heavy blow to the petrodollar becoming the basis for the usage of the yuan in Middle East markets. It is no secret that the oil-producing countries of the Middle Eastern region have little trust in the US dollar due to the export of inflation, so one should expect other OPEC countries to sign agreements with China.

As for the Southeast Asia region, the establishment of a clearing center in Kuala Lumpur, which will promote greater use of the yuan locally, has become yet another major step that was made by China in the region. This event occurred in less than a month after the leading financial center of Asia – Singapore – became a center of the yuan exchange in Southeast Asia after establishing direct dialogue regarding the Singapore dollar and the yuan.

The Islamic Republic of Iran has recently announced its reluctance to use US dollars in its foreign trade. Additionally, the President of Kazakhstan Nursultan Nazarbayev has recently tasked the National Bank with the de-dollarization of the national economy.

All across the world, the calls for the creation of a new international monetary system are getting louder with each passing day. In this context it should be noted that the UK government plans to release debts denominated in yuans while the European Central Bank is discussing the possibility of including the yuan in its official reserves.

Those trends are to be seen everywhere, but in the midst of anti-Russian propaganda, Western newsmakers prefer to keep quiet about these facts, in particular, when inflation is skyrocketing in the United States. In recent months, the proportion of US Treasury bonds in the Russian foreign exchange reserves has been shrinking rapidly, being sold at a record pace, while this same tactic has been used by a number of different states.

To make matters worse for the US, many countries seek to export their gold reserves from the United States, which are deposited in vaults at the Federal Reserve Bank. After a scandal of 2013, when the US Federal Reserve refused to return German gold reserves to its respective owner, the Netherlands have joined the list of countries that are trying to retrieve their gold from the US. Should it be successful the list of countries seeking the return of gold reserves will double which may result in a major crisis for Washington.

The above stated facts indicate that the world does not want to rely on US dollars anymore. In these circumstances, Washington relies on the policy of deepening regional destabilization, which, according to the White House strategy, must lead to a considerable weakening of any potential US rivals. But there’s little to no hope for the United States to survive its own wave of chaos it has unleashed across the world.

Vladimir Odintsov, political commentator, exclusively for the online magazine “New Eastern Outlook”