Neoliberal Economics Destroyed the Economy and the Middle Class

Posted on January 3, 2020 by Reid Mukai

By Paul Craig Roberts

According to official US government economic data, the US economy has been growing for 10.5 years since June of 2009. The reason that the US government can produce this false conclusion is that costs that are subtrahends from GDP are not included in the measure. Instead, many costs are counted not as subtractions from growth but as additions to growth. For example, the penalty interest on a person’s credit card balance that results when a person falls behind his payments is counted as an increase in “financial services” and as an increase in Gross Domestic Product. The economic world is stood on its head.

It is aggregate demand that drives the economy. Payments made on a rise in interest rates on credit card balances from 19% to a 29% penalty rate reduce consumers’ ability to contribute to aggregate demand by purchasing goods and the services of doctors, lawyers, plumbers, electricians, and carpenters. Contrary to logic, the fee is magically counted in the “financial services” category as a contributor to GDP growth. The extortion of a fee that reduces aggregate demand lowers GDP, but builds paper wealth in the financial services sector.

GDP growth is also artificially inflated by counting as GDP abstract concepts that do not produce income streams. For example, for homeowners the US Department of Commerce estimates the rental values of owner-occupied housing, that is, the amount owners would be paying if they rented instead of owned their homes, and counts this imputed rent as GDP.

These and other absurdities have caused economist Michael Hudson to conclude correctly that the “financial reality of how the U.S. economy works is no longer captured in GDP statistics.”
https://michael-hudson.com/2019/10/asset-price-inflation-and-rent-seeking/

Today we have two economies. One is the real economy of production and consumption. The other is the financialized economy of paper wealth. The former is doing poorly, and the latter is doing well. The financialized economy is growing much faster than the real economy. Indeed, the real economy might not be growing at all.

Michael Hudson describes the difference. The stock market is at all time highs that have created massive wealth in financial assets for stock and bond owners. In the real economy the situation is totally different: “The Federal Reserve’s Report on the Economic Well-Being of U.S. Households in 2018 reports that 39% of Americans do not have $400 cash available for a medical or other emergency, and that a quarter of adults skipped medical care in 2018 because they could not afford it ( https://www.federalreserve.gov/publications/files/2018-report-economic-well-being-us-households-201905.pdf ). The latest estimates by the U.S. Government Accountability Office (GAO) report that nearly half (48 percent) of households headed by someone 55 and older lack any retirement savings or pension benefits ( https://www.aarp.org/retirement/retirement-savings/info-2019/no-retirement-money-saved.html ). Even in what the press calls an economic boom, most Americans feel stressed and many are chronically angry and worried. According to a 2015 survey by the American Psychological Association, financial worry is the “number one cause of stress in America today” ( https://www.apa.org/news/press/releases/2015/02/money-stress ).

The data is completely clear. The rich are becoming much richer, and the rest are becoming poorer. Michael Hudson explains:

“The creation and trading of property and financial assets at rising prices has been fueled by rising debt levels owed to the financial sector. This sector’s returns therefore are best seen not as real wealth on the asset side of the balance sheet, but as overhead on the liabilities side. And the process is multi-layered: income accruing to the financial wealth owned by the top 10 Percent is paid mainly by the bottom 90 percent in the form of rising debt service and other returns to financial and other property.

“In the textbook models of industrial capitalism’s mass production and consumption, an asset’s price is determined by its cost of production. If the price rises above this level, competitors will offer it cheaper. But in the financialized economy an asset’s price is determined by how much credit buyers can borrow to buy it, not by its cost of production. A home is worth as much as a bank will lend to a bidder.

“The engine of industrial capitalism and its consumer society is a positive feedback loop in which widely shared income growth, expanding consumption and markets generated yet more investment and growth. By contrast, the feedback loop of financial capitalism is an exponential growth of credit-driven debt, driving up asset prices and hence requiring yet more borrowing to buy homes, retirement income and other assets. Corporate management and investment today is mainly about obtaining capital gains for real estate, stocks and bonds than about earning income.

“We illustrate this by charting the flow of income and capital gains in the real estate sector to show the dominance of asset-price gains over net rental income – and how rental income is used up paying interest in our financialized economy. Likewise, corporate income is spent (and new debt taken on) largely for stock buybacks to raise share prices. The resulting dynamic is exponential and destabilizing.”

This dynamic is destabilizing, because as more of consumers’ discretionary income is drawn off to service mortgage, credit card, automobile and student debt and for compulsory health insurance, less is left to purchase the goods and services in the real economy. Consequently, credit-driven debt grows faster than the income that services it, and this impoverishes the 90%. However, for the 10%, money creation by the Federal Reserve in order to protect the balance sheets of the “banks too big to fail or jail” drives up the values of financial assets. As a result the distribution of income and wealth becomes hightly polarized.

Think about the many Americans who meet their living expenses by making only the minimum payment on their credit card balance. At 19% interest their debt grows monthly. Eventually they hit a credit card debt cap and can no longer use the card to cover their living expenses. But they have the burden of a large debt balance to service without an income stream capable of servicing it.

Think about the corporation that decapitalizes itself in order to produce short to intermediate term capital gains for shareholders and executives by indebting the firm in order to buy back the firm’s shares. The end result is that all income goes for debt service.

In a financialized economy, the only possible outcomes are debt forgiveness or collapse.

As Michael Hudson makes clear, the combination of nonsensical categories in the National Income and Product Accounts and a financialized economy means we have no accurate picture of the economy’s condition. Michael Hudson has a proposal for correcting these problems and making GDP accounting more accurate, but as ecological economists such as Herman Daly have made clear, GDP measurement also omits the external costs of production. This means that we do not know whether GDP is growing or declining. It is entirely possible that the ecological and social costs of an increase in GDP (as currently measured) are greater than the value of the increased output. (See Paul Craig Roberts, The Failure of Laissez-Faire Capitalism, https://www.amazon.com/Failure-Laissez-Faire-Capitalism/dp/0986036250/ref=sr_1_2?crid=16NHZEQ9G3JRW&keywords=paul+craig+roberts+books&qid=1576440032&s=books&sprefix=Paul+Craig%2Caps%2C173&sr=1-2 )

Perhaps the major way in which GDP is overstated is the exclusion of external or social costs. External or social costs are costs of producing a product that the producer does not incur but imposes on third parties or on the environment. For example, untreated sewage dumped into a stream imposes costs on people downstream. Runoff of chemical fertilizers from commercial farming produces dead zones in the Gulf of Mexico and toxic algal blooms such as Red Tide that result in massive fish kills, make seafood unsafe, cause human ailments and adversely impact the tourist trade of beach areas. The result is lost incomes, ruined vacations, health expenses, and none of these costs are born by the commercial farmers.

Real estate development produces massive external costs. Scenic views from existing properties are blocked, thus reducing their values. Construction noise and congestion impose costs on existing residents and reduces the quality of their lives. Water runoff problems are often created. Infrastructure has to be provided, such as larger highways to provide evacuation from hurricane-impacted areas, usually financed by taxpayers. If the global warming case is correct, the external cost of human economic activity can be the life of the planet.

Lakshmi Sarah in the May/June, 2019, issue of the Sierra Club magazine provides an excellent detailed account of the external costs of coal-fired power plants being built in India by the Indian conglomerate Tata with a loan from the International Finance Corporation, a branch of the World Bank. The ground water in the area has been ruined and is no longer drinkable. Farmers are no longer able to grow crops on half of the area farmland. Heated wastewater that is dumped into the Gulf of Kutch is destroying fishing. The ecology and the livelihoods of the population are essentially destroyed. None of these costs are born by the private power companies.

Tired of being doormats for capitalists and the World Bank, the residents of the affected provinces rebelled. They have succeeded in getting their case before the US Supreme Court. It seems that the International Finance Corporation is so accustomed to financing projects that produce large external costs that it overlooked its obligation to examine the environmental impact of the projects it finances. This oversight resulted in Indian farmers and fishermen getting their case before the US Supreme Court. The International Finance Corporation’s lawyers argued that the World Bank lending agency had “absolute immunity.” The Supreme Court said no and remanded the case to the circuit court to rule on the damages.

Perhaps the most surprising thing about this apparent victory for ordinary faraway little people in an American court against the World Bank, a principle instrument of American imperialism, is that the Trump administration appeared in court as a friend of the Indian farmers and fishermen. The US Solicitor General, represented by Jonathan Ellis, rejected the notion that international orgnizations have absolute immunity. The Establishment exists on its immunity. Here we see the ultimate reason that the ruling Establishment wants rid of Trump.

Already the senior staff of the International Finance Corporation have come to the realization that they have other responsibilities than just to shuffle money out the lending shute. If the Indian farmers and fishermen succeed in protecting themselves from ruination by external costs, perhaps Americans who suffer external costs will follow their lead.

Perhaps economists will also come to the realization that they owe us accurate GDP accounting and not fanciful accounts that serve elite wealth in the financialized economy.

Get Ready For An Economic Wake-Up Call This Holiday Season

Posted on December 24, 2019 by Reid Mukai

By Brandon Smith

Source: Alt-Market.com

If we are to measure the concept of “economic recovery” in real terms, then we would have to look at the fundamentals (not stock markets) and whether or not they’re improving. Unfortunately, not all economic data is presented to the public honestly. Very often it is mired and obscured in a fog of disinformation and false standards.

I would point out, though, that there is relatively accurate information out there in certain areas of the global economy, and it tells us our economic structure is destabilizing. Beyond that, even the rigged numbers are moving into negative territory. But what does all this mean for the holiday retail season, one of the mainstream’s favorite gauges of US financial health? And, if 2019’s holiday profits sink, what does this tell us is going to happen in 2020?

First, let’s start with what we know…

Since we live in a “globalized” economy where everything is supposedly “interdependent”, it helps to examine international export numbers. The US doesn’t manufacture and export much of anything anymore beyond agricultural products, but global markets do expect us to consume the goods of other nations. A decline in exports indicates a failing global economy, but in particular a failing US consumer economy.

The obvious example would be China, which has seen plunging export data at least the past three months, though many will argue that this is merely due to tariffs and the trade war. However, it’s not just China that is showing signs of collapse.

South Korea, another major manufacturing and export hub in Asia (5th largest in the world) has seen declining exports for 11 consecutive months. South Korean shipping is crumbling in November and the media is blaming the trade war, as some SK companies would be “hit indirectly” because they sell intermediate goods to China are are linked to US companies in China. But this makes little sense. Tariffs are highly targeted to specific companies and specific goods, and so far the US has not directed major tariff attention at South Korea beyond the auto market. Also, the new KORUS deal between Trump and SK is different only cosmetically to original trade agreements, yet, South Korean exports continue to fall.

The same situation can be seen in Japan, with Japanese exports witnessing a 9.2% year-over-year drop in October, the largest decline in 3 years. Japan has seen three consecutive months of declines in exports.

And what about Europe? While Germany, the manufacturing powerhouse of the EU, finally saw a jump in exports to the US this past month, overall the European Union has seen consistently poor export performance for the past year, and Germany itself is hovering on the edge of recession with 0.1% official GDP growth. Many economist already consider Germany to be in recession, as official GDP numbers are constantly manipulated by governments to the upside.

But let’s not forget about the US. Remember how Trump promised that the trade war would result in a renaissance for US manufacturing and that millions of industrial jobs would be returning to our shores? Well, as I’ve warned consistently for the past couple years, there is NO WAY corporations will be bringing manufacturing jobs and factories back to the US without ample incentives. Trump already gave companies tax cuts without demanding anything in return, and the cost/benefit ratio of building new factories and paying American workers top dollar versus keeping existing factories in Asia and dealing with 10%-25% tariffs just doesn’t add up to a new US rust belt renaissance.

While manufacturing jobs have increased, US manufacturing activity has declined. Meaning, there simply isn’t enough demand for the goods being produced. US manufacturing ISM index just sank this month and has been sinking for the past four month into negative territory. While US PMI manufacturing data jumped this month, it is still well below the 10 year average and is also very low compared to past holiday seasons, which almost always see a spike in manufacturing. US manufacturing remains at a historic low of 11% of US GDP and production output has decline steadily since January of this year.

The question is, will the vast decline in global manufacturing translate to a crash in consumer demand? We know that US credit dependency has skyrocketed in the past few years, but will more debt result in more profits for retailers? This is highly unlikely, as US retail sales growth, for example, has been in decline at the same time that consumer debt has been rising. Why? Credit delinquencies have been relatively stable (so far) this year, so my theory is that people in the US are paying off previous debts by taking on new debt. They are kicking the can on their insolvency.

We have seen this kind of destructive credit death cycle before – Right before the crash of 2008.

So what does all this mean? And why is the media portraying the trade war with China as the cause of the global export and shipping crisis when clearly most of the world is not directly or even indirectly tied to the tariffs?

As noted above, the narrative that is being pushed is that we live in an “interdependent” and globalized world, and that nations cannot function economically without cooperation. The trade war, I believe, is a smokescreen designed by the globalist establishment to do two things specifically:

1) It is being created to hide a crash in the greater economy. Notice that almost no one in the mainstream is talking about a collapse in global production and multiple fundamentals due to DEMAND; instead they constantly talk about the trade war and exports. The trade war is becoming the scapegoat for the implosion of the market bubble engineered by globalists and central banks through a decade of stimulus measures.

The collapse of the economic bubble is being caused in part by massive debt and a lack of consumer demand due to lack of consumer savings and cash flow. The trade war has little to do with it, and I suspect we would be seeing sharp declines in the US economy in particular even without the trade war.

2) The trade war creates a false dichotomy in which many Americans will be lured into blaming China and other nations for their economic ills, and China and the rest of the world will be lured into blaming America. It also reasserts the globalist propaganda argument that when nations and economies “go rogue”, they hurt everyone; therefore, more global controls and centralization will have to be established in order to prevent nationalism from harming the rest of the world.

And what does this all have to do with the Christmas shopping season? Like the end of last year, I think we are in for another ugly holiday retail event – Perhaps far worse than before. All the manufacturing and export data indicates that this will be the case. If so, then the mainstream narrative of recovery, long perpetuated as fact by the media and the Federal Reserve for the past several years, will finally die.

The only thing that might elevate holiday numbers would be increased price inflation in goods, but I predict that even inflation misrepresented as “profits” will not save Christmas stats this year. Some skeptics of the ongoing crash will argue that Black Friday numbers this year were the best since 2013, therefore the holiday season will be a good one. These people don’t know their economic history. In most cases, holiday seasons that start off with a high traffic Black Friday end with poor overall sales data, including 2013. This is because consumers that are cash strapped are more likely to buy early during Black Friday sales and spend far less over the rest of the season.

In the mind of the average American consumer, holiday retail sales are a primary indicator of the health of the economy. A dramatic crash in Christmas retail will end the delusion of a stable US system and cause the public to start asking questions. Economics is 50% math and 50% psychology. The math in the US economy says we are in the middle of a crash. The psychological orientation of the public has been on the opposite end of spectrum, but is now slowly moving to meet with reality. When the psychological delusion ends, the game is over. And, for the globalists a new game begins.

Order out of chaos is their motto for a reason…

The global “reset” as they sometimes refer to it, has already been triggered. Going into 2020, the question is will the fantasy fall completely away to reveal the grotesque economic swamp our foundation has been built on top of? Or, will the delusion drag on for at least one more year? Given the current data, I suspect the party is over. But it is difficult to predict how the public will react to a financial crash. Sometimes people have no choice but to acknowledge the danger in front of them, but sometimes they simply bury their heads in the sand deeper and hope that by dragging out the inevitable the inevitable will become forgettable.

This holiday season, American workers have little to celebrate

Posted on December 23, 2019 by Reid Mukai

By Danny Haiphong

Source: Intrepid Report

Every year, much of the U.S. population celebrates Thanksgiving and Christmas to show appreciation for their families and friends. Thanksgiving normalizes the colonial origins of the United States and erases the brutality of the English settlers who massacred indigenous people to prepare the land for capitalist accumulation. Christmas is the annual holiday of big business. On no other day are workers more encouraged to spend their wages on the latest consumer product to gift to their loved ones. The holidays bring with them a deep pressure to be merry. Yet on this holiday season, workers have little to celebrate.

A new study by Brookings Institution provides a snapshot into the devastation wrought on the working class by American capitalism. Forty-four percent of all workers between the ages of 18-64 are employed in low-wage sectors and earn an average of $16 or less per hour. The study excluded workers who logged over 98 hours per week over the last year as well as certain sections of the college-educated population such as those living in dormitories and attending graduate school. Had these groups of workers been counted, the percentage of low-wage workers out of the total population would likely be even higher. This verifies prior datasets which proved that around half of the U.S. population makes less $30,000 per year.

The growing poverty of the American worker is a major contributor to the growth of toxic stress and mental illness. Half of all U.S. adults will develop a mental illness over the course of their life. Serious mental health conditions afflict nearly ten million people in the United States and over a quarter of these individuals live below the official poverty line. Suicide rates are at a thirty-year high. An obvious connection exists between rising poverty and the worsening mental health of the American worker.

Workers in the United States see no future under the current stage of capitalism. They struggle to afford rent in a nation where the federal minimum wage cannot pay for a two-bedroom apartment anywhere in the country. They indebt themselves in the trillions to attend college and obtain healthcare. They work in redundant, service sector jobs where hours are long and mistreatment, abuse, and injury are all too common. The American worker is increasingly alienated from themselves and each other. Union density rates in the U.S. have fallen to just ten percent of all workers since World War II.

The shrinking labor movement has followed a larger trend in U.S. society. Privatization has decimated the public sector. Workers have few places to socially convene independent of the machinations of consumer capitalism. Workers are competing for fewer jobs, most of which are not worth competing for at all. Homelessness, mass incarceration, and endless war remind workers that they can easily be turned into cannon fodder if they step out of line. In such an environment, addiction and self-destruction is encouraged while organizing for justice is discouraged.

Economic insecurity and alienation place more pressure on families to make up for stagnant wages and exorbitant amounts of debt. More young workers are living with their parents than at any other time in the last one hundred years. Older workers are not only forestalling retirement but also finding themselves without family or community support as siblings and adult children chase the highest paying jobs and the lowest rents and property values. Couples feel compelled to remain in toxic relationships for economic reasons. A strong link exists between domestic violence and poverty.

Contrary to the messages in Hallmark cards or the corporate media, the holidays are far from a time of celebration. Many workers view the holiday season as a harsh reminder of the loss, alienation, and despair that they’ve experienced over the course of their lives. Holidays place added pressure on workers to dismiss the ills of capitalism and the personal stressors associated with them. It should come as no surprise that most workers already struggling with mental health conditions report that the holidays only worsen their symptoms. Instead of embracing humanity, the holidays encourage workers to embrace rampant commercialism and the nuclear family.

To break from a culture steeped in the profit motive, workers will need to create their own traditions based upon solidarity and social transformation. Not everything about the holidays needs to be thrown out in the process. Spending time with family and friends during a day off from work can and should be rewarding to the psyche and to society. The conditions of capitalism prevent the holidays from serving a social purpose. Holidays under capitalism breed despair but brand themselves as moments of pure joy.

While workers may have little to celebrate this holiday season, there are reasons for the working class to be optimistic in the years to come. Teachers in cities such as Chicago and Los Angeles have won key gains in 2019 by using the most powerful weapon at the disposal of organized labor: the strike. At the beginning of the year, the Los Angeles Teachers won smaller class sizes and more support staff. The Chicago Teachers Union massively increased the number of nurses in the school district by forcing the city to hire nurses rather than continue the inefficient and harmful practice of hiring private contractors. The UAW’s strike of General Motors (GM) earlier this Fall made global headlines even if it was unable to win every demand that the workers put forth. These strikes reflect a growth of class consciousness in the United States. The continued growth of class consciousness will be critical toward building the kind of struggle capable of bringing about massive political and economic change for the working class.

Furthermore, workers around the world are leading the way in the struggle against class inequality and foreign-sponsored wars. Massive protests in Haiti, Chile, Honduras, and Algeria are just a few of many occurring around the globe. The protests have mainly targeted repressive U.S.-backed governments and their neoliberal economic agenda. China is leading the world in poverty reduction. Cuba is the most sustainably developed nation in the world. A vast majority of workers around the world want to see an end of the miseries imposed by global capital and are actively fighting to make their demands a reality.

The question is whether workers in the United States can decisively break from the despair, the racism, and the extreme alienation shaping their current condition. Being determines consciousness. At this moment, the neoliberal race to the bottom has rendered most workers too fearful, disorganized, and full of self-blame to fight back. However, millions of workers have rallied behind the political campaign of Bernie Sanders. Labor unrest is likely to continue as neither political party appears interested in implementing Bernie Sanders’ social democratic agenda. Workers in the United States are in desperate need of a revived labor movement to quench their thirst for a better life. Putting our energies into building this movement will go a long way toward shaking the Holiday Blues and giving workers something to really celebrate: a society run by workers, in the interests of workers.

The Economic Crash So Far: A Look At The Real Numbers

Posted on December 17, 2019 by Reid Mukai

By Brandon Smith

Source: Alt-Market.com

There are many problems when attempting to track a faltering economy. For one, the people in government generally do not want the public to know when the system is in decline because this looks bad for them. They prefer to rig statistical indicators as much as possible and hope that no one notices. When the crash occurs, they then claim that “no one saw it coming” and the disaster “came out of nowhere”, so how could they be to blame?

I have even heard it argued that political leaders, including the president, have a “duty” to lie about the state of the economy because once they admit to the decline they will cause a panic and perpetuate the crisis. This is stupidity. If an economic system is in disrepair and is built on a faulty foundation, then the problems should be identified and fixed immediately. The weak businesses should be culled, not bailed out. The wasteful government spending should be cut, not increased. The downturn should not be hidden and prolonged for years or decades. In most cases, this only makes the inevitable crash far worse and more damaging.

Another factor, which some people might call “conspiracy theory” – but it has been proven time and time again in history – is that the money elites have a tendency to engineer economic disasters while deliberately hiding the real statistics from the public. Why? Well, if the real data was widely disseminated, then a crash would not be much of a surprise and the populace could be prepared for it. I suspect the elites hide the data because they WANT the crash to be a surprise. The bigger the shock, the bigger the psychological effect on the masses. This fear and confusion allows them to make changes in the power structure of a nation or of the entire world that they would not be able to accomplish otherwise.

The most rigged statistics tend to be the least important overall in analysis, but this does not stop the mainstream media and investors from hyper focusing on them. How many times have you told friends and family about the collapse in manufacturing or the explosion in consumer and corporate debt, only to hear them say, “But the stock market is at all-time highs!” Yes, even though stock markets are a meaningless trailing indicator, even though GDP stats are a complete fallacy, and even though jobless numbers do not include tens of millions of people out of work, these are the stats that the average person takes mental note of when consuming their standard 15 minutes of news per day.

While the issue of rigged statistics makes analysis of a crash difficult, a willfully ignorant citizenry makes reporting on the real data almost impossible. It’s sad to say, but a large number of people do not want to hear about negative information. They want to believe that all is well, and will delude themselves with fantasies of blind optimism and endless summers. Like the tale of “The Ant And The Grasshopper”, they are grasshoppers and they see anyone who focuses on the negative as “chicken littles” and “doom mongers”. In their minds they have all the time in the world, until they freeze and starve when winter comes.

When I encounter people who actually believe the manipulated numbers or buy into the stock market farce or simply don’t want to accept that a crash could happen in their lifetime, I always ask them to consider these questions: If the global economy is not on the verge of collapse, then why did central banks keep propping it up for the past ten years? And if central banks have been propping up the system, how much longer do you think they can do this? How much longer do you think they want to do it? What if one day they decide to let the entire house of cards tumble? What if such an event actually benefits them?

We’ve seen that a broken economy can be technically held together for a decade, but under the surface, the structure continues to rot. The bottom line is that even if the elites wanted to keep the system going for another ten years, and even if politicians continued to help them by pumping out false statistics, there is no way to hide the effects of crumbling fundamentals. We saw this during the crash of 2008, and now we’re seeing it again.

After nearly ten years of stimulus inflated the largest financial bubble in history (the Everything Bubble), the Federal Reserve and other central banks halted stimulus measures and tightened global liquidity. By the end of 2018, a new crash began, the implosion of the Everything Bubble had been triggered. All of this is still just an extension of the crash of 2008, which never really subsided; it was only slowed down through tens of trillions of dollars in central bank intervention. Now, the central banks have started an avalanche that cannot be stopped. But the fact of the matter is, they don’t really want to stop it.

Here are the indicators so far that prove a crash is happening in the U.S. while a majority of the public is oblivious:

GDP numbers are completely manipulated. Government spending of taxpayer dollars on a number of inflated programs, including continued spending on Obamacare, is added to GDP calculations. Without this fancy accounting, U.S. GDP growth would actually be negative, according to ShadowStats. But even with the juiced data, official GDP growth is still in decline, falling to 1.9% and well below the 3% growth we were supposed to see this year.

Official unemployment stats remain at all-time lows, which is commonly cited by the mainstream media, Donald Trump (he used to argue the opposite three years ago), and even the Federal Reserve in reference to the health and stability of the economy. What they do not mention much is the 95 million people not in the labor force and not counted because they have been unemployed for so long. When the media does mention this fact, they claim the number is “misleading”, that most of these people are students or retired, that the retirement age is decreasing and Baby Boomers are leaving the workforce sooner, and that the people who don’t have jobs are simply “not interested” in working. None of this is true.

The retirement age is increasing in the U.S., not decreasing, according the SS Administration. Current average retirement age is now 67, up from 65, almost the same as it was during the Great Depression.

Baby Boomers are not retiring at rates similar to ten years ago, and are in fact attempting to stay in the workforce due to the poor economy. Many of them are trying to come OUT of retirement just to make ends meet.

The labor participation rate remains near record lows.

Interestingly, the Bureau of Labor Statistics (BLS) house survey that is used to determine if people “want a job” assumes that if you are near retirement age and do not have a job, you are simply not interested in a job, and they count you as “non-participating”. However, if you DO have a job and you are near retirement age, they count you as participating. It’s a rather convenient assumption on the government’s part to claim that just because an unemployed person is near retirement age, that means they “don’t want a job”.

While there is surely a small percentage of the 95 million people not counted in the labor force that do not want a job, if unemployment stats counted U-6 measurements as they used to, the unemployment rate would be closer to 20%.

Another problem is the quality of jobs being created. U.S. manufacturing jobs, as well as higher wage jobs, are in steep decline. They have been replaced with low paying jobs in the service sector.

Real wages in the U.S. have not kept up with inflation. The average worker is now losing money overall as prices rise beyond the pace of their incomes.

As more and more Millennials say they cannot afford to buy a home, rental prices have skyrocketed in the past several years. The home ownership rate plunged starting in 2006 and has not recovered since.

U.S. manufacturing has fallen to levels not seen since the crash of 2008. U.S. factory orders have slumped in 2019.

U.S. Services PMI continues to falter since spring of this year. Job growth is now slowing and over 8,500 retail stores have been closed down already in 2019. Web-based retail is not picking up the slack, as online sellers like Amazon are suffering from falling profits.

Corporate profits overall have tumbled this year and projected future profits have been drastically adjusted to the downside.

Corporate debt, consumer debt and national debt are all at historic highs. Corporate cash flow is so tight that Federal Reserve repo purchases continue to run into high demand. This debt signal is one we saw in 2007, just before the credit crisis.

U.S. trucking and railroad freight continue to log steep declines in traffic and goods. This tells us what we already know: Even though consumer spending has increased recently, this does not mean people are buying more stuff or have more disposable income. What is really happening is inflation, or stagflation. Cost of living is going up. Debt payments are going up. Consumers are spending more on the same amount of stuff, or less stuff, and have less expendable income. U.S. consumers are being bled dry.

All of these factors and more show an economy in recession or depression (depending on what historic standards you use). In the darker corners of the investment world, the great hope is that the central banks will return to pumping trillions into the banking sector ($16 trillion during the TARP bailout dwarfs the $250 billion the Fed has recently pumped out in their repo markets). They hope that this will free up even more credit. Meaning, they believe only more debt will save the system from suffering.

I say, time is up on the debt party. More stimulus will not stall the crash that is already happening, and the Fed does not appear poised to print anywhere near what it did during the credit crisis, at least not in time to change the trend. The can has been kicked for the last time. The grasshopper mentality will not save people from the clear reality. Only preparation and planning will.

The Need for a Greater Vision: Recognizing Reality

Posted on December 8, 2019 by Reid Mukai

By Jennifer Ladd

Source: Resilience

Question Beliefs

We live in a culture that is embedded in unquestioned beliefs passing as truth. These beliefs are the source of our current crisis. We attempt to solve the problems of degradation of our environment and climate disruption, but we do not look at these core beliefs. We hold on to the idea that capitalism is the only right way to organize an economy, that democracy is essential to our freedom, that freedom itself is a core ingredient to our happiness. We believe corporate slogans such as “Progress is our most important product” (General Electric), and subscribe to the belief that technology will solve whatever problems we have, even the ones caused by technology.

Grasp the Scope of the Crisis

Most of us are unable to back away far enough to grasp the whole picture. We are like a tourist with a flashlight trying to get a view of a huge mural that covers a block-long wall. The news media can only focus our attention on a tiny fraction of the image at any one time. We read daily reports of record temperatures in the arctic, of ice sheets melting in the Antarctic, of floods, forest fires all over the world, political gridlock, and recession fears. We are deluged with information. Most of us have been touched directly by at least one aspect of the crisis. Today I am breathing the smoke of fires in British Columbia and Alaska hundreds of miles away. These are direct experiences, yet there are still those who deny that climate change is real or that it is a problem. And worse yet we do not have the political will or mechanism to respond. Many scientists clam we are beyond the tipping point. They say the damage done to the ecosystem is so great that further decline is assured, even if we drastically reduce our impact in the next 5 years.

We are confronting a confluence of issues – environmental degradation, climate disruption, political tension and economic instability – that create an unprecedented risk to future generations. Climate disruption is getting all the headlines, but talk to a fisherman anywhere on the coast and he will point to depleted fish stocks making it impossible to earn a living fishing. Some of that is due to climate, but over-fishing, water pollution and destruction of spawning grounds also play major roles. Agricultural runoff is creating large dead zones at the mouths of rivers, areas that used to be some of the most productive.

Insect populations are plummeting with some reports of 75% loss in the last 50 years¹.Insects are the base of the food chain for many creatures. If they die off then we will all go. The cause is not simple but insecticides on farm land and habitat destruction are major factors.

Fresh water is another resource in critical decline. We have been pumping water from aquifers at rates that far exceed the rate of recharge. Worldwide, 40% of our food grown on irrigated land.² Without irrigation we will face severe food shortages. In addition, much of the remaining irrigated land is dependent on snowpack that feeds reservoirs in the mountains. As the climate warms there is less snow and it melts sooner, reducing the amount of stored water available.

If we listen to the economic news we cannot help but be aware of the rapid increase in the US national debt. Politicians seem incapable of holding the debt in check, especially the Trump administration that established policies and tax cuts that have dramatically increased the debt at a time when the economy is doing relatively well and we should be reducing the debt. Despite the ignorance of some lawmakers, debt cannot continue to rise indefinitely. Many countries have tried that. In the end it leads to hyper inflation, and in extreme cases, a collapse of the government.

A more subtle and less talked about issue is that of resource depletion. True, Malthus warned the world of this 200 years ago during a time when energy resources in the form of wood were being depleted.Then we discovered coal, then oil, and the industrial revolution sparked a new level of development and environmental destruction on a level Malthus could never have foreseen. The issue is that while technology has kept the price of raw materials from increasing dramatically, metals like copper, and energy sources like oil and gas are finite. The deeper we have to mine or drill and the more complex the extraction process, the smaller the final product derived from the energy expended to get the material. When oil was first discovered it took roughly one barrel of oil’s worth of energy to extract 100 barrels. Now that one barrel might get us 10 barrels. The costs are multiplied throughout the system. In other words if it now takes 3 times as much energy to mine a ton of copper as it did 50 years ago, because the high quality and easily extracted ore are gone, and that energy is derived from oil which itself requires 10 times more energy to extract, then the two factors multiply the real cost of the copper. In our example it now “costs” the equivalent of 30 times more oil to produce a ton of copper. Again, we run into limits.

I am proposing that the solution is a radical redesign of our civilization based on a more sustainable model. To do that we need to examine the core beliefs of our society to see which ones are compatible with a new vision and which ones need to be abandoned. This requires that we face our fear of change, grieve for the losses, clear our nervous systems of intergenerational trauma that blinds us to seeing the reality of our time and open our hearts to living in connection. This cannot come about by any rational decision by a governing body. Those in power have a vested interest in keeping the current system alive as long as possible. Call it a form of corruption, but it is also simply a matter of self preservation. We can, however, make changes on a personal and local level. We can have working models established on a small scale that can replace systems on a national level as they fail. We either cling to the existing paradigm as it implodes, or we can place our attention and focus our energy on creating new systems that support life in harmony on the planet.

Look Below the Symptoms

A partial list of these beliefs was mentioned already – that our prosperity depends on capitalism, democracy, and progress through technology. Let’s go deeper to see how these structures of society evolved, and how they affect us today. The core belief that underlies our current civilization is the idea that we are separate from nature and superior to other creatures and even other races of human beings. It leads to a distrust of nature which shows up even in the fables we tell our children, which are filled with images of the dark and dangerous forest and the merciless ocean depths.

Another belief is that security consists of having enough food or money stored away to last through hard times. In itself the belief is true, but it becomes dysfunctional in a world of finite resources when each person is focused on maximizing their own resources without consideration for the whole. To justify our actions we convince ourselves that there are no limits, we can have it all and, through technology, everyone can be raised up to the lifestyle we enjoy in the USA.

We are embedded in the psychology of capitalism, and we live in a world shrouded in fear. The combination is lethal. Fear leads to contraction and thinking only of one’s own survival. Capitalism promotes the value of gathering resources for our own use and enjoyment. When capitalism is combined with the Puritan work ethic, it allows us to justify income inequality because of the unspoken belief that if we have more than our neighbor it is because we worked harder or smarter and therefore deserve the rewards. We may feel no obligation to share our good fortune because those who are less well off obviously did not work hard enough. The result is a society that is fundamentally adversarial, pitting the wealthy against the poor, those in power against those who would like to be in control.

That leads to us versus them thinking that pervades our culture and shows up on all levels, particularly in public arenas like politics. The two party system has devolved into two conflicting ideologies that feel irreconcilable. Each party has become more isolated and rigid in their doctrine to the point that many people only listen to information that supports their point of view or their party’s view. Where is the middle ground that allows for a cooperative solution? Problems that require dramatic solutions like climate disruption cannot be effectively addressed.

Capitalism has been the driving force behind the industrial age. It has brought us technology that was unimaginable 200 years ago. The problem is that it is fundamentally incompatible with a sustainable world. The core precepts – private ownership of goods and land, a competitive market for labor and materials, emphasis on capital accumulation – lead to a society that is made up of a few wealthy “owners” and a large number of “workers”. The system is dependent on keeping the wages paid to labor low enough that the owners can produce products that are competitive in the market place. When labor unions were strong there was a balance of power, but the advent of free trade and multinational corporations has robbed labor unions of their bargaining power because of the availability of cheap labor in the developing world. The result is an ever increasing disparity of wealth between the owners and the workers, and an ever increasing number of workers at the lowest level of the economy. Until the last 10 years, this has been partly disguised by an overall improvement in living standards through technology, but when one compares the hours worked in 1950 to support a family, when one person’s income was adequate, compared to the present when both adults of the family have to work, it’s clear that the average working family has to work harder simply to pay for the necessities of life. Free time to enjoy life has evaporated. We do not account for that in the statistics of progress like GDP.

To facilitate the transactions of a capitalistic economy we invented money and a banking system to manage the creation of money. In our system, money is created by the banks in an equal amount to the loans they make. In other words the creation of money is dependent on the creation of debt. Debt, however, once created, tends to grow faster than the money supply because of the effect of compounding interest. Debt will tend to accumulate with those members of society that are unable to pay it off, and capital will accumulate to those who have wealth already and are free from debt. At first it works well, but as debt accumulates to the workers, they have less money to buy the goods produced by the owners and the economy goes into recession. Debt is reduced through bankruptcies and foreclosures. Capital is reduced by the downsizing and failure of businesses. Eventually a new cycle begins. Historically, the cycle often becomes extreme and outcome is revolution as the tension between the wealthy and the poor becomes intolerable.

Capitalism is a natural outgrowth of our survival instinct in disconnected world. If we do not feel supported by our fellow humans, by the natural world, and by a greater presence, then there is a level of insecurity that we continually try to appease by building protective shells around us. In modern times this translates into ownership of land, house, and enough money and other resources to allow us to feel secure. Unfortunately in the rush to acquire these items we have sold our soul to the banks which in effect own our homes and often our cars. We end up feeling even less secure because we now have even more to lose if the economy turns down and we lose our job. We crave a sense of control over our lives, but we can no longer hunt for our food or harvest it directly from the earth so even to eat we are dependent on a complex web of corporate-run systems of transportation and production that we do not control or even understand.

Healing the Wound Of Separation

In order to live in harmony with each other and with the earth we need to heal the core wound of separation from a close community, separation from the earth and the natural world, and separation from the spiritual ground from which all of this manifested world arises. Without resolving all three levels of separation we will continue to live in fear and grief, maybe depression. It is that core sense of not enough that drives the Euro-American addiction to doing, to trying to get somewhere or get something that we think will cure that sense of not enough. We invent better technology, more powerful machines to get us there faster, but the result is that we find out ever sooner that the goal we had set is not going to satisfy the sense of lack. We may accumulate more wealth at the expense of the community around us and defend that wealth with all our strength, but it does not bring us the security we seek.

In order to heal, let us acknowledge the true state of our own life and of the world. Let us fully feel the grief of the separation and fully feel the rage that lies hidden. We may have a sense of being betrayed by the society that we were taught to trust as a child. We accepted the promise of perpetual progress and came to expect that we should have a better life than our parents.

On a global level, can we feel the pain and destruction this has caused to the earth? Can we acknowledge and feel the horrors of genocide against the native population of this country and other colonized places in the world? Can we feel the full impact of enslaving millions of African natives to work our fields? The grief is immense. We have kept it suppressed for centuries, but it must be felt. Let us clear the intergenerational trauma so we can come into our hearts and truly feel the connection with the earth and with each other.

Only then, free from clinging to a failing system, in the hope of preserving the status quo, can we reconnect with source and make the leap to a new way of living. We do not have to invent better ways of living on this planet. There are models of aboriginal societies that have lived here for more than 10,000 years without destroying their environment or collapsing from internal dysfunction. They have evolved sophisticated systems of government and economic systems that allowed the wealth that was accumulated to be redistributed to those in need. They held their land in common for the benefit of the whole tribe. We have much to learn from their societies.

1. In 2017, scientists reported a decline of more than 75 percent in insect biomass across 63 nature areas in Germany between 1989 and 2016. https://www.scientificamerican.com/article/as-insect-populations-decline-scientists-are-trying-to-understand-why/

2 .http://www.fao.org/nr/water/aquastat/infographics/Irrigated_eng.pdf

Bolivia’s New Puppet Regime Wastes No Time Aligning With US Foreign Policy

Posted on November 25, 2019 by Reid Mukai

By Caitlin Johnstone

Source: CaitlinJohnstone.com

The Washington-recognized interim government which just ascended to power via US-backed military coup in Bolivia is already shifting the nation’s foreign policy into alignment with the US-centralized empire, severing important ties with two governments which have resisted absorption into the imperial blob.

“Bolivia’s caretaker government isn’t wasting any time overhauling its foreign policy, announcing Friday that it will expel hundreds of Cuban officials and break ties with longtime ally Venezuela,” The Miami Herald reports. “In a series of statements, Bolivia’s new foreign minister, Karen Longaric, told local media that about 725 Cubans — including doctors and medical staff — would begin leaving Bolivia on Friday.”

“In that same interview she also said she’d be recalling Bolivia’s diplomatic staff from Venezuela,” Miami Herald adds. “Later, asked if she would maintain ties with Venezuelan leader Nicolás Maduro, she said, ‘Of course we’ll break diplomatic relations with the Maduro government.’”

Of course they will.

In more it's-totally-not-a-coup news, the self-proclaimed "President" of Bolivia – after seizing power as the left-wing President was sent into exile & warning him he'd be arrested if he returned – cut off relations with Venezuela & expelled Cuban doctors https://t.co/ovXx0J57ai

— Glenn Greenwald (@ggreenwald) November 15, 2019

This news comes as no surprise to anyone who’s been paying attention. US foreign policy is essentially an endless war on disobedience, in which governments that refuse to bow to US interests are toppled by any means necessary and replaced by governments who will.

International affairs are much easier to understand once you stop thinking in terms of separate, sovereign nations and start thinking in terms of alliances and empire. What we are witnessing can best be described as a slow-motion third world war between what amounts to an unofficial globe-spanning empire centralized around the United States and its military on one side, and all the nations which have refused to be absorbed into this empire on the other. Nations which allow themselves to be absorbed are rewarded with the carrot of military and economic alliance with the empire, and nations which refuse are punished with the stick of invasions, sanctions, trade wars, and coups, with the ultimate goal being total unipolar global domination. The bigger the imperial blob grows, the stronger and more effective it becomes in undermining the interests of unabsorbed nations like Venezuela and Cuba.

Nothing takes precedence over this agenda of unipolar hegemony. As long as a nation remains loyal to the empire, it can fund terrorists, butcher Washington Post columnists, and create the worst humanitarian crisis in the world without fear of any retribution of any kind from the US-centralized empire. As a leaked State Department memo explained in 2017, so far as the empire is concerned human rights violations are nothing more than a strategic narrative control weapon with which to attack unabsorbed nations, and to be ignored when they are perpetrated by absorbed nations.

It should therefore also surprise no one that this same Washington-recognized government installed via US-backed military coup is now murdering demonstrators who object to it.

#Bolivia | Police and military forces repress protests against the coup. At least five killed by bullet impact in Sacaba, Cochabamba.

#GolpeDeEstadoBolivia pic.twitter.com/qFzqRbAKez

— teleSUR English (@telesurenglish) November 16, 2019

As of this writing there have been five protesters confirmed to have been killed by gunfire in Cochabamba, where security forces are cracking down on demonstrations with extreme aggression against majority-Indigenous demonstrations in support of the ousted president Evo Morales.

The narrative managers at The New York Times are reporting on the events in Cochabamba with the obnoxious insinuation that it may actually be Morales and Bolivia’s Indigenous population who are to blame for current tensions. Here are a couple of excerpts from NYT’s latest contribution to the narrative matrix titled “Ethnic Rifts in Bolivia Burst Into View With Fall of Evo Morales” (emphases mine):

Mr. Morales’s nearly 14 years in power represented a breakthrough for the three-quarters of Bolivians who are either of Indigenous descent or identify as members of Indigenous groups. But he also reinforced his base of support with explicit appeals to racial identity that many Bolivians found threatening and polarizing.

…

“Racism exists in Bolivia; it existed before Evo, and it will never disappear,” said Michelle Kieffer, an insurance broker, as she sipped a cappuccino in an upper-middle-class neighborhood of the country’s administrative capital, La Paz.

“While Evo started an important discussion,” she added, “he also manipulated the race issue, and that has caused disunity. And now people of different races look at each other with suspicion.”

Right. Gotcha. Maybe it’s the impoverished brown-skinned people who are in fact the real fascists, and not the literal Christian fascist coupmongers whose US-backed government takeover they are protesting. Thanks, NYT.

Cochabamba, Bolivia. This is the coup regime Canada’s supporting pic.twitter.com/BoeFItUB32 #cdnpoli #GolpeDeEstadoEnBolivia

— Derrick O’Keefe (@derrickokeefe) November 15, 2019

Morales won re-election by over ten percentage points last month, and his previously-elected term wasn’t scheduled to end until January. He was commanded to resign during a current term by the military despite fully acquiescing to demands for a new internationally supervised election. Now it’s being reported that the popular leftist party to which he belonged, MAS, may be banned by the Jeanine Añez-led interim government from participating in the next elections.

Despite all this the western mass media are continuing their cartoonishly ridiculous pattern of resisting the use of the word ‘coup’ when reporting on Bolivia, except to admonish people for using that word as in the case of recent narrative management pieces by The Washington Post, The Washington Examiner, and The Economist.

“Supporters of the coup in Bolivia can’t call it a coup,” US politician Lee Carter recently noted. “The US has a law preventing us from sending foreign aid to a new government if it was installed by a coup. So they come up with absurd claims that the military forcing Evo out somehow isn’t a coup.”

And the western mass media are falling right in line with the government forces in refusing to use this word, despite the ousting of a government by the military being exactly the thing that a coup is. This is because in a plutocracy, plutocrat-owned media is functionally the same as state media. Reporters for plutocratic media know what they are and are not permitted to say without being told, so they advance narratives which favor the status quo upon which their plutocrat employers have built their respective kingdoms. This is the status quo of the US-centralized empire, which just absorbed Bolivia and pivoted its foreign policy against the unabsorbed governments of Venezuela and Cuba.

Bolivia coup led by Christian fascist paramilitary leader and millionaire – with foreign support

Posted on November 22, 2019 by Reid Mukai

Bolivian coup leader Luis Fernando Camacho is a far-right multi-millionaire who arose from fascist movements in the Santa Cruz region, where the US has encouraged separatism. He has courted support from Colombia, Brazil, and the Venezuelan opposition.

By Max Blumenthal and Ben Norton

Source: The Grayzone

When Luis Fernando Camacho stormed into Bolivia’s abandoned presidential palace in the hours after President Evo Morales’s sudden November 10 resignation, he revealed to the world a side of the country that stood at stark odds with the plurinational spirit its deposed socialist and Indigenous leader had put forward.

With a Bible in one hand and a national flag in the other, Camacho bowed his head in prayer above the presidential seal, fulfilling his vow to purge his country’s Native heritage from government and “return God to the burned palace.”

“Pachamama will never return to the palace,” he said, referring to the Andean Mother Earth spirit. “Bolivia belongs to Christ.”

Bolivia’s extreme right-wing opposition had overthrown leftist President Evo Morales that day, following demands by the country’s military leadership that he step down.

Virtually unknown outside his country, where he had never won a democratic election, Camacho stepped into the void. He is a powerful multi-millionaire named in the Panama Papers, and an ultra-conservative Christian fundamentalist groomed by a fascist paramilitary notorious for its racist violence, with a base in Bolivia’s wealthy separatist region of Santa Cruz.

Camacho hails from a family of corporate elites who have long profited from Bolivia’s plentiful natural gas reserves. And his family lost part of its wealth when Morales nationalized the country’s resources, in order to fund his vast social programs — which cut poverty by 42 percent and extreme poverty by 60 percent.

In the lead-up to the coup, Camacho met with leaders from right-wing governments in the region to discuss their plans to destabilize Morales. Two months before the putsch, he tweeted gratitude: “Thank you Colombia! Thank you Venezuela!” he exclaimed, tipping his hat to Juan Guaido’s coup operation. He also recognized the far-right government of Jair Bolsonaro, declaring, “Thank you Brazil!”

Camacho had spent years leading an overtly fascist separatist organization called the Unión Juvenil Cruceñista. The Grayzone edited the following clips from a promotional historical documentary that the group posted on its own social media accounts:

The rich oligarch leader of Bolivia's right-wing coup, Luis Fernando Camacho, was the leader of an explicitly fascist paramilitary group.

Here are some clips from a promotional historical documentary it published:https://t.co/gFMyfjsi2p pic.twitter.com/XXNQfhD7ii

— The Grayzone (@TheGrayzoneNews) November 12, 2019

While Camacho and his far-right forces served as the muscle behind the coup, their political allies waited to reap the benefits.

The presidential candidate Bolivia’s opposition had fielded in the October election, Carlos Mesa, is a “pro-business” privatizer with extensive ties to Washington. US government cables published by WikiLeaks reveal that he regularly corresponded with American officials in their efforts to destabilize Morales.

Mesa is currently listed as an expert at the Inter-American Dialogue, a DC-based think tank funded by the US government’s soft-power arm USAID, various oil giants, and a host of multi-national corporations active in Latin America.

Evo Morales, a former farmer who rose to prominence in social movements before becoming the leader of the powerful grassroots political party Movement Toward Socialism (MAS), was Bolivia’s first Indigenous leader. Wildly popular in the country’s substantial Native and peasant communities, he won numerous elections and democratic referenda over a 13-year period, often in landslides.

On October 20, Morales won re-election by more than 600,000 votes, giving him just above the 10 percent margin needed to defeat opposition presidential candidate Mesa in the first round.

Experts who did a statistical analysis of Bolivia’s publicly available voting data found no evidence of irregularities or fraud. But the opposition claimed otherwise, and took to the streets in weeks of protests and riots.

The events that precipitated the resignation of Morales were indisputably violent. Right-wing opposition gangs attacked numerous elected politicians from the ruling leftist MAS party. They then ransacked the home of President Morales, while burning down the houses of several other top officials. The family members of some politicians were kidnapped and held hostage until they resigned. A female socialist mayor was publicly tortured by a mob.

The squalid US-backed fanatics of the Bolivian right ransack the house of the country’s elected president, Evo Morales. And the havoc is just beginning. Let no one call them “pro-democracy.” https://t.co/rwwvOSAEaA

— Max Blumenthal (@MaxBlumenthal) November 11, 2019

Following the forced departure of Morales, coup leaders arrested the president and vice president of the government’s electoral body, and forced the organization’s other officials to resign. Camacho’s followers proceeded to burn Wiphala flags that symbolized the country’s Indigenous population and the plurinational vision of Morales.

The Organization of American States, a pro-US organization founded by Washington during the Cold War as an alliance of right-wing anti-communist countries in Latin America, helped rubber stamp the Bolivian coup. It called for new elections, claiming there were numerous irregularities in the October 20 vote, without citing any evidence. Then the OAS remained silent as Morales was overthrown by his military and his party’s officials were attacked and violently forced to resign.

The day after, the Donald Trump White House enthusiastically praised the coup, trumpeting it as a “significant moment for democracy,” and a “strong signal to the illegitimate regimes in Venezuela and Nicaragua.”

Emerging from the shadows to lead a violent far-right putsch

While Carlos Mesa timidly condemned the opposition’s violence, Camacho egged it on, ignoring calls for an international audit of the election and emphasizing his maximalist demand to purge all supporters of Morales from government. He was the true face of the opposition, concealed for months behind the moderate figure of Mesa.

A 40-year-old multi-millionaire businessman from the separatist stronghold of Santa Cruz, Camacho has never run for office. Like Venezuelan coup leader Juan Guaidó, whom more than 80 percent of Venezuelans had never heard of until the US government anointed him as supposed “president,” Camacho was an obscure figure until the coup attempt in Bolivia hit its stride.

He first created his Twitter account on May 27, 2019. For months, his tweets went ignored, generating no more than three or four retweets and likes. Before the election, Camacho did not have a Wikipedia article, and there were few media profiles on him in Spanish- or English-language media.

Camacho issued a call for a strike on July 9, posting videos on Twitter that got just over 20 views. The goal of the strike was to try to force the resignation of Bolivian government’s electoral organ the Supreme Electoral Tribunal (TSE). In other words, Camacho was pressuring the government’s electoral authorities to step down more than three months before the presidential election.

It was not until after the election that Camacho was thrust into the limelight and transformed into a celebrity by corporate media conglomerates like the local right-wing network Unitel, Telemundo, and CNN en Español.

All of a sudden, Camacho’s tweets calling for Morales to resign were lighting up with thousands of retweets. The coup machinery had been activated.

Mainstream outlets like the New York Times and Reuters followed by anointing the unelected Camacho as the “leader” of Bolivia’s opposition. But even as he lapped up international attention, key portions of the far-right activist’s background were omitted.

Left unmentioned were Camacho’s deep and well-established connections to Christian extremist paramilitaries notorious for racist violence and local business cartels, as well as the right-wing governments across the region.

It was in the fascist paramilitaries and separatist atmosphere of Santa Cruz where Camacho’s politics were formed, and where the ideological contours of the coup had been defined.

Cadre of a Francoist-style fascist paramilitary

Luis Fernando Camacho was groomed by the Unión Juvenil Cruceñista, or Santa Cruz Youth Union (UJC), a fascist paramilitary organization that has been linked to assassination plots against Morales. The group is notorious for assaulting leftists, Indigenous peasants, and journalists, all while espousing a deeply racist, homophobic ideology.

Since Morales entered office in 2006, the UJC has campaigned to separate from a country its members believed had been overtaken by a Satanic Indigenous mass.

The UJC is the Bolivian equivalent of Spain’s Falange, India’s Hindu supremacist RSS, and Ukraine’s neo-Nazi Azov battalion. Its symbol is a green cross that bears strong similarities to logos of fascist movements across the West.

And its members are known to launch into Nazi-style sieg heil salutes.

https://twitter.com/GrayzoneProject/status/1194137427474038784

Even the US embassy in Bolivia has described UJC members as “racist” and “militant,” noting that they “have frequently attacked pro-MAS/government people and installations.”

After journalist Benjamin Dangl visited with UJC members in 2007, he described them as the “brass knuckles” of the Santa Cruz separatist movement. “The Unión Juvenil has been known to beat and whip campesinos marching for gas nationalization, throw rocks at students organizing against autonomy, toss molotov cocktails at the state television station, and brutally assault members of the landless movement struggling against land monopolies,” Dangl wrote.

“When we have to defend our culture by force, we will,” a UJC leader told Dangl. “The defense of liberty is more important than life.”

Camacho was elected as vice president of the UJC in 2002, when he was just 23 years old. He left the organization two years later to build his family’s business empire and rise through the ranks of the Pro-Santa Cruz Committee. It was in that organization that he was taken under the wing of one of the separatist movement’s most powerful figures, a Bolivian-Croatian oligarch named Branko Marinkovic.

In August, Camacho tweeted a photo with his “great friend,” Marinkovic. This friendship was crucial to establishing the rightist activist’s credentials and forging the basis of the coup that would take form three months later.

Hoy cumple años un gran líder cruceño y expresidente del Comité pro Santa Cruz pero todo un gran amigo, Branko Marinkovic, quien entregó todo, su libertad y su vida, por su pueblo. pic.twitter.com/uVzNrgH2pI

— Luis Fernando Camacho (@LuisFerCamachoV) August 21, 2019

Camacho’s Croatian godfather and separatist powerbroker

Branko Marinkovic is a major landowner who ramped up his support for the right-wing opposition after some of his land was nationalized by the Evo Morales government. As chairman of the Pro-Santa Cruz Committee, he oversaw the operations of the main engine of separatism in Bolivia.

In a 2008 letter to Marinkovic, the International Federation for Human Rights denounced the committee as an “actor and promoter of racism and violence in Bolivia.”

The human rights group added that it “condemn[ed] the attitude and secessionist, unionist and racist discourses as well as the calls for military disobedience of which the Pro-Santa Cruz Civic Committee for is one of the main promoters.”

In 2013, journalist Matt Kennard reported that the US government was working closely with the Pro-Santa Cruz Committee to encourage the balkanization of Bolivia and to undermine Morales. “What they [the US] put across was how they could strengthen channels of communication,” the vice president of the committee told Kennard. “The embassy said that they would help us in our communication work and they have a series of publications where they were putting forward their ideas.”

In a 2008 profile on Marinkovic, the New York Times acknowledged the extremist undercurrents of the Santa Cruz separatist movement the oligarch presided over. It described the area as “a bastion of openly xenophobic groups like the Bolivian Socialist Falange, whose hand-in-air salute draws inspiration from the fascist Falange of the former Spanish dictator Franco.”

The Bolivian Socialist Falange was a fascist group that provided safe haven to Nazi war criminal Klaus Barbie during the Cold War. A former Gestapo torture expert, Barbie was repurposed by the CIA through its Operation Condor program to help exterminate communism across the continent. (Despite its antiquated name, like the German National Socialists, this far-right extremist group was violently anti-leftist, committed to killing socialists.)

The Bolivian Falange came into power in 1971 when its leader, Gen. Hugo Banzer Suarez, ousted the leftist government of Gen. Juan Jose Torres Gonzales. The government of Gonzales had infuriated business leaders by nationalizing industries and antagonized Washington by ousting the Peace Corps, which it viewed as an instrument of CIA penetration. The Nixon administration immediately welcomed Banzer with open arms and courted him as a key bulwark against the spread of socialism in the region. (An especially ironic 1973 dispatch appears on Wikileaks showing Secretary of State Henry Kissinger thanking Banzer for congratulating him on his Nobel Peace Prize).

The movement’s putschist legacy persevered during the Morales era through organizations like the UJC and figures such as Marinkovic and Camacho.

The Times noted that Marinkovic also supported the activities of the UJC, describing the fascist group as “a quasi-independent arm of the committee led by Mr. Marinkovic.” A member of the UJC board told the US newspaper of record in an interview, “We will protect Branko with our own lives.”

Marinkovic has espoused the kind of Christian nationalist rhetoric familiar to the far-right organizations of Santa Cruz, calling, for instance, for a “crusade for the truth” and insisting that God is on his side.

The oligarch’s family hails from Croatia, where he has dual citizenship. Marinkovic has long been dogged by rumors that his family members were involved in the country’s powerful fascist Ustashe movement.

The Ustashe collaborated openly with Nazi German occupiers during World War Two. Their successors returned to power after Croatia declared independence from the former Yugoslavia – a former socialist country that was intentionally balkanized in a NATO war, much in the same way that Marinkovic hoped Bolivia would be.

Marinkovic denies that his family was part of the Ustashe. He claimed in an interview with the New York Times that his father fought against the Nazis.

But even some of his sympathizers are skeptical. A Balkan analyst from the private intelligence firm Stratfor, which works closely with the US government and is popularly known as the “shadow CIA,” produced a rough background profile on Marinkovic, speculating, “Still don’t know his full story, but I would bet a lot of $$$ that this dude’s parents are 1st gen (his name is too Slavic) and that they were Ustashe (read: Nazi) sympathizers fleeing Tito’s Communists after WWI.”

The Stratfor analyst excerpted a 2006 article by journalist Christian Parenti, who had visited Marinkovic at his ranch in Santa Cruz. Evo Morales’ “land reform could lead to civil war,” Marinkovic warned Parenti in the Texas-accented English he picked up while studying at the University of Texas.

Today, Marinkovic is an ardent supporter of Brazil’s far-right leader Jair Bolsonaro, whose only complaint about Chilean dictator Augusto Pinochet was that he “didn’t kill enough.”

Marinkovic is also a public admirer of Venezuela’s far-right opposition. “Todos somos Leopoldo” — “we are all Leopoldo,” he tweeted in support of Leopoldo López, who has been involved in numerous coup attempts against Venezuela’s elected leftist government.

While Marinkovic denied any role in armed militant activity in his interview with Parenti, he was accused in 2008 of playing a central role in an attempt to assassinate Morales and his Movement Toward Socialism party allies.

He told the New York Times less than two years before the plot developed, “If there is no legitimate international mediation in our crisis, there is going to be confrontation. And unfortunately, it is going to be bloody and painful for all Bolivians.”

An assassination plot links Bolivia’s right to international fascists

In April 2009, a special unit of the Bolivian security services barged into a luxury hotel room and cut down three men who were said to be involved in a plot to kill Evo Morales. Two others remained on the loose. Four of the alleged conspirators had Hungarian or Croatian roots and ties to rightist politics in eastern Europe, while another was a right-wing Irishman, Michael Dwyer, who had only arrived in Santa Cruz six months before.

The ringleader of the group was said to be a former leftist journalist named Eduardo Rosza-Flores who had turned to fascism and belonged to Opus Dei, the traditionalist Catholic cult that emerged under the dictatorship of Spain’s Francisco Franco. In fact, the codename Rosza-Flores assumed in the assassination plot was “Franco,” after the late Generalissimo.

During the 1990s, Rosza fought on behalf of the Croatian First International Platoon, or the PIV, in the war to separate from Yugoslavia. A Croatian journalist told Time that the “PIV was a notorious group: 95% of them had criminal histories, many were part of Nazi and fascist groups, from Germany to Ireland.”

By 2009, Rosza returned home to Bolivia to crusade on behalf of another separatist movement in Santa Cruz. And it was there that he was killed in a luxury hotel with no apparent source of income and a massive stockpile of guns.

The government later released photos of Rosza and a co-conspirator posing with their weapons. Publication of emails between the ringleader and Istvan Belovai, a former Hungarian military intelligence officer who served as a double agent for the CIA, cemented the perception that Washington had a hand in the operation.

Marinkovic was subsequently charged with providing $200,000 to the plotters. The Bolivian-Croatian oligarch initially fled to the United States, where he was given asylum, then relocated to Brazil, where he lives today. He denied any involvement in the plan to kill Morales.

As journalist Matt Kennard reported, there was another thread that tied the plot to the US: the alleged participation of an NGO leader named Hugo Achá Melgar.

“Rozsa didn’t come here by himself, they brought him,” the Bolivian government’s lead investigator told Kennard. “Hugo Achá Melgar brought him.”

The Human Rights Foundation destabilizes Bolivia

Achá was not just the head of any run-of-the-mill NGO. He had founded the Bolivian subsidiary of the Human Rights Foundation (HRF), an international right-wing outfit that is known for hosting a “school for revolution” for activists seeking regime change in states targeted by the US government.

HRF is run by Thor Halvorssen Jr., the son of the late Venezuelan oligarch and CIA asset Thor Halvorssen Hellum. The first cousin of the veteran Venezuelan coup plotter Leopoldo Lopez, Halvorssen was a former college Republican activist who crusaded against political correctness and other familiar right-wing hobgoblins.

After a brief career as a firebrand right-wing film producer, in which he oversaw a scandalous “anti-environmentalist” documentary financed by a mining corporation, Halvorssen rebranded as a promoter of liberalism and the enemy of global authoritarianism. He launched the HRF with grants from right-wing billionaires like Peter Thiel, conservative foundations, and NGOs including Amnesty International. The group has since been at the forefront of training activists for insurrectionary activity from Hong Kong to the Middle East to Latin America.

Though Achá was granted asylum in the US, the HRF has continued pushing regime change in Bolivia. As Wyatt Reed reported for The Grayzone, HRF “freedom fellow” Jhanisse Vaca Daza helped trigger the initial stage of the coup by blaming Morales for the Amazon fires that consumed parts of Bolivia in August, mobilizing international protests against him.

At the time, Daza posed as an “environmental activist” and student of non-violence who articulated her concerns in moderate-seeming calls for more international aid to Bolivia. Through her NGO, Rios de Pie, she helped launch the #SOSBolivia hashtag, which signaled the imminent foreign-backed regime-change operation.

Courting the regional right, prepping the coup

While HRF’s Daza rallied protests outside Bolivian embassies in Europe and the US, Fernando Camacho remained behind the scenes, lobbying right-wing governments in the region to bless the coming coup.

In May, Camacho met with Colombia’s far-right President Ivan Duque. Camacho was helping to spearhead regional efforts at undermining the legitimacy of Evo Morales’ presidency at the Inter-American Court of Human Rights, seeking to block his candidacy in the October election.

That same month, the rightist Bolivian agitator also met with Ernesto Araújo, the chancellor of Jair Bolsonaro’s ultra-conservative administration in Brazil. Through the meeting, Camacho successfully secured Bolsonaro’s backing for regime change in Bolivia.

This November 10, Araújo enthusiastically endorsed the ouster of Morales, declaring that “Brazil will support the democratic and constitutional transition” in the country.

Then in August, two months before Bolivia’s presidential election, Camacho held court with officials from Venezuela’s US-appointed coup regime. These included Gustavo Tarre, Guaido’s faux Venezuelan OAS ambassador, who formerly worked at the right-wing Center for Strategic and International Studies (CSIS) think tank in Washington.

After the meeting, Camacho tweeted gratitude to the Venezuelan coup-mongers, as well as to Colombia and Brazil.

No vamos a parar hasta tener una democracia real! Seguimos avanzando!

Vamos sumando apoyo… ahora lo hace Venezuela…Gracias a Dios.. hay esperanza!

Gracias Colombia!
Gracias Venezuela!
Gracias Brasil! pic.twitter.com/v9TQ2Fi2Sa

— Luis Fernando Camacho (@LuisFerCamachoV) August 27, 2019

Mesa and Camacho: a marriage of capitalist convenience

Back in Bolivia, Carlos Mesa occupied the spotlight as the opposition’s presidential candidate.

His erudite image and centrist policy proposals put him in a seemingly alternate political universe from fire-breathing rightists like Camacho and Marinkovic. For them, he was a convenient front man and acceptable candidate who promised to defend their economic interests.

“It might be that he is not my favorite, but I’m going to vote for him, because I don’t want Evo,” Marinkovic told a right-wing Argentine newspaper five days before the election.

Indeed, it was Camacho’s practical financial interests that appeared to have necessitated his support for Mesa.

The Camacho family has formed a natural gas cartel in Santa Cruz. As the Bolivian outlet Primera Linea reported, Luis Fernando Camacho’s father, Jose Luis, was the owner of a company called Sergas that distributed gas in the city; his uncle, Enrique, controlled Socre, the company that ran the local gas production facilities; and his cousin, Cristian, controls another local gas distributor called Controgas.

According to Primera Linea, the Camacho family was using the Pro-Santa Cruz Committee as a political weapon to install Carlos Mesa into power and ensure the restoration of their business empire.

Mesa has a well-documented history of advancing the goals of transnational companies at the expense of his own country’s population. The neoliberal politician and media personality served as vice president when the US-backed President Gonzalo “Goni” Sanchez de Lozada provoked mass protests with his 2003 plan to allow a consortium of multinational corporations to export the country’s natural gas to the US through a Chilean port.

Bolivia’s US-trained security forces met the ferocious protests with brutal repression. After presiding over the killing of 70 unarmed protesters, Sanchez de Lozada fled to Miami and was succeeded by Mesa.

By 2005, Mesa was also ousted by huge demonstrations spurred by his protection of privatized natural gas companies. With his demise, the election of Morales and the rise of the socialist and rural Indigenous movements behind him were just beyond the horizon.

US government cables released by WikiLeaks show that, after his ouster, Mesa continued regular correspondence with American officials. A 2008 memo from the US embassy in Bolivia revealed that Washington was conspiring with opposition politicians in the lead-up to the 2009 presidential election, hoping to undermine and ultimately unseat Morales.

The memo noted that Mesa had met with the chargé d’affaires of the US embassy, and had privately told them he planned to run for president. The cable recalled: “Mesa told us his party will be ideologically similar to a social democratic party and that he hoped to strengthen ties with the Democratic party. ‘We have nothing against the Republican party, and have in fact gotten support from IRI (International Republican Institute) in the past, but we think we share more ideology with the Democrats,’ he added.”

Today, Mesa serves as an in-house “expert” at the Inter-American Dialogue, a neoliberal Washington-based think tank focused on Latin America. One of the Dialogue’s top donors is the US Agency for International Development (USAID), the State Department subsidiary that was exposed in classified diplomatic cables published on Wikileaks for strategically directing millions of dollars to opposition groups including those “opposed to Evo Morales’ vision for indigenous communities.”

Other top funders of the Dialogue include oil titans like Chevron and ExxonMobil; Bechtel, which inspired the initial protests against the administration in which Mesa served; the Inter-American Development Bank, which has forcefully opposed Morales’ socialist-oriented policies; and the Organization of American States (OAS), which helped delegitimize the Morales’s re-election victory with dubious claims of irregular vote counts.

Finishing the job

When Carlos Mesa touched off nationwide protests in October by accusing the Evo Morales government of committing electoral fraud, the right-wing firebrand hailed by his followers as “Macho Camacho” emerged from the shadows. Behind him was the hardcore separatist shock force that he led in Santa Cruz.

Mesa faded into the distance as Camacho emerged as the authentic face of the coup, rallying his forces with the uncompromising rhetoric and fascist symbology that defined the Unión Juvenil Cruceñista paramilitary.

As he declared victory over Morales, Camacho exhorted his followers to “finish the job, let’s get the elections going, let’s start judging the government criminals, let’s put them in jail.”

Back in Washington, meanwhile, the Trump administration released an official statement celebrating Bolivia’s coup, declaring that “Morales’s departure preserves democracy.”

MSM Adamantly Avoids The Word “Coup” In Bolivia Reporting

Posted on November 18, 2019 by Reid Mukai

By Caitlin Johnstone

Source: CaitlinJohnstone.com

There has been a military coup in Bolivia backed by violent right-wing rioters and the US government, but you’d hardly know this from any of the mainstream media headlines.

“Bolivian President Evo Morales steps down following accusations of election fraud” proclaims CNN.

“Bolivia’s Morales resigns amid scathing election report, rising protests” reports The Washington Post.

“Bolivian Leader Evo Morales Steps Down” says The New York Times.

“Bolivian President Evo Morales resigns amid fraud poll protests” declares the BBC.

“President of Bolivia steps down amid allegations of election rigging” we are informed by Telegraph.

“Bolivia’s President Morales resigns after backlash to disputed election” says the Sydney Morning Herald.

So there you have it. The indigenous leader of a socialist South American government which has successfully lifted masses of people out of crushing poverty, which happens to control the world’s largest reserves of lithium (which may one day replace oil as a crucial energy resource due to its use in powering smartphones, laptops, hybrid and electric cars), which has an extensive and well-documented history of being targeted for regime change by the US government, simply stepped down due to some sort of scandal involving a “disputed election”. Nothing to do with the fact that right-wing mobs had been terrorizing this leader’s family, or the fact that the nation’s military literally commanded him to step down and are now currently searching for him to arrest him, leading to ousted government officials being rounded up and held captive by soldiers wearing masks.

All perfectly normal and not suspicious at all.

Fully support the findings of the @OAS_official report recommending new elections in #Bolivia to ensure a truly democratic process representative of the people’s will. The credibility of the electoral system must be restored.

— Secretary Pompeo (@SecPompeo) November 10, 2019

As is usual, mass media’s reporting on this story is in full alignment with the US State Department, with Secretary of State Mike Pompeo also advancing the “disputed election” line in a tweet shortly before the forced resignation of Morales. Pompeo cited the evidence-free and discredited allegation of suspicious vote tallies during Morales’ re-election last month from the Washington-based Organization of American States (OAS). As Mark Weisbrot of the Center for Economic & Policy Research explains in a recent article for The Nation, the OAS receives 60 percent of its funding from Washington, which gives the US tremendous leverage over the supposedly neutral and international body. This ties in interestingly with what we discussed the other day about Washington’s known history of using its disproportionate financial support for the Organization for the Prohibition of Chemical Weapons as leverage to force that supposedly neutral and international body to comply with US agendas.

The field of narrative management keeps making more and more advances.

They never did find any evidence of fraud in the October 20th election, but the media repeated the allegation so many times that it became "true," in this post-truth world. Thread: https://t.co/8oWFNKNebT

— Mark Weisbrot (@MarkWeisbrot) November 10, 2019

The US-centralized empire just keeps throwing coup attempts at unabsorbed governments until they stick. The coup in Venezuela failed in 2002 and again in 2019, but they’ll just keep attempting them until one takes hold. A kickboxer throws strikes in combinations with the understanding that most attacks will miss or do minimal damage against a trained opponent, but eventually one will get through and score the knockout blow. Imperialist regime change agendas employ the same punches-in-bunches philosophy: just keep attacking and undermining at every possible turn, and eventually something will stick.

And the empire can afford to do this. When you have all the power and resources, you can bide your time, knowing that if the current attempt at toppling the government in a sovereign nation fails, there’s always tomorrow.

At a United Nations Security Council meeting last year, President Morales summed up the true nature of America’s role in the world very accurately, and, it turns out, very presciently.

“I would like to say to you, frankly and openly here, that in no way is the United States interested in upholding democracy,” Morales said. “If such were the case it would not have financed coups d’etat and supported dictators. It would not have threatened with military intervention democratically elected governments as it has done with Venezuela. The United States could not care less about human rights or justice. If this were the case, it would have signed the international conventions and treaties that have protected human rights. It would not have threatened the investigation mechanism of the International Criminal Court, nor would it promote the use of torture, nor would it have walked away from the Human Rights Council. And nor would it have separated migrant children from their families, nor put them in cages.”

“The United States is not interested in multilateralism,” Morales continued. “If it were interested in multilateralism it would not have withdrawn from the Paris Agreement or given the cold shoulder to the global compact on migration, it would not have launched unilateral attacks, nor have taken decisions such as illegally declaring Jerusalem to be the capital of Israel. This contempt for multilateralism is motivated by the thirst of the United States for political control and for the seizing of natural resources.”

“Each time that the United States invades nations, launches missiles, or finances regime change, it does so behind a propaganda campaign which incessantly repeats the message that it is acting in the course of justice, freedom and democracy, in the cause of human rights or for humanitarian reasons,” Morales also said.

“The responsibility of our generation is to hand over a fairer and more secure world to the following generation,” Morales concluded. “We will only achieve this dream if we work together to consolidate a multipolar world, a world with common rules that are respected by and defended from all the threats ranged against the United Nations.”

Indeed, the only reason the US is able to wage its endless campaign of regime change agendas against unabsorbed governments is because the unipolar world order it rules has allowed it the power, resources and leisure to do so. A multipolar world would enable the citizenry of this planet to have a say in what happens to them in a way that is not dictated by a few sociopaths in and around Washington, DC. A multipolar world is to democracy as a unipolar world is to monarchy. The citizens of the world should oppose this unipolarity.

	You Don’t Have To Wa… on You Don’t Have To Wait For Hal…
	ALL OUT WAR ON THE L… on ALL OUT WAR ON THE LIFE F…
	Pacific.scoop.co.nz… on Killing the Biosphere to Fast-…
	Reid Mukai on Saturday Matinee: Wizards
	Lara/Trace on Saturday Matinee: Wizards

After the Crash

Dispatches From a Long Recovery (Est. 10/2024)

Category Archives: Neoliberalism

The Need for a Greater Vision: Recognizing Reality