Tag Archives: Economics

The End of American “Exceptionalism”?

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Failing banks, inflation, soaring interest rates and the flight from the petrodollar could become a disaster for ordinary Americans

“Dollar” by Images_of_Money is licensed under CC BY 2.0.

By Philip Giraldi

Source: FreePress.org

Watching a once great nation commit suicide is not pretty. President Joe Biden does not seem to understand that his role as elected leader of the United States is to take actions that directly or indirectly benefit the folks who voted for him as well as the other Americans who did not do so. That is how a constitutional democracy is supposed to work. Instead, Biden and the gang of introverts and neocon war criminals that the has surrounded himself with have done everything that can to inflict fatal damage on the economy through rash initiatives both overseas and at home. A spending spree to buy support from the bizarre constituencies that make up the Democrat Party base while also fighting an undeclared war in Europe have meant that nearly two trillion dollars has been added to the national debt under Biden’s rule, a debt that was already unsustainable at nearly $30 trillion, larger than the United States’ gross national product. Plans to cancel student loan debts will add hundreds of billions of dollars more to the red ink.

And those actions undertaken overseas, to include continuing to expand the war in Ukraine against Russia, will do immeasurable more damage. Consider how the Democratic Party has long had it in for Russian Federal President Vladimir Putin, dating back to when Putin took power in 2000 and started kicking out the western scallywags who were looting his country. Subsequently, false intelligence and other innuendoes were contrived by Hillary Clinton and her team in 2016 to implicate Donald Trump as a Russian stooge who was secretly working for Putin. When that didn’t work and Trump was elected, the Russians were accused by the media and Democrats of willy-nilly interfering in US elections more generally speaking, a much-exaggerated claim in contrast to the overwhelming silence surrounding the real electoral and policy interference, which has been coming from Israel and its fifth column inside the United States, who, not coincidentally, are the chief proponents of the war against Russia.

Placing a target on Vladimir Putin’s back appears to have an unfortunate consequence which Biden has yet to wake up to, namely the fact that the United States now has what might be described as a Ponzi scheme faux economy which is very vulnerable, particularly as much of the world has become disenchanted with the US style of global leadership. Note for example the recent state visit by French President Emmanuel Macron to Beijing, where he embraced a “global strategic partnership with China” to bring about a “multipolar” world, freed of “blocs” that is not sheltering behind “Cold War mentality.” Macron also criticized the “extraterritoriality of the US dollar.”

And threats made by the Bidens against both China and Russia have accomplished little beyond drawing the two major political and military powers closer together. Beijing and Moscow entered into a trade agreement in their own currencies in 2014 and have openly taken steps to challenge US dominance of international currency exchanges, creating instead a global multipolar trading environment. Europe aside, many nations are now eager to cut the tie that binds, which is the decades long American dominance of international financial mechanisms and also the general use of dollars to pay for oil and other energy supplies. The widespread use of petrodollars enables the buffoonish Janet Yellen at the US Treasury and the Federal Reserve banks to print unlimited unbacked fiat currency, knowing that there will always be a market for it.

Which brings us back to the Ukraine war, pursued “until we win” by Biden and his somnolent Secretary of State Antony Blinken. One of the first moves when Russia intervened in Ukraine was to block and eventually confiscate Russia’s 300 billion dollars-worth of foreign reserves in banks in the US and Europe. That sent a shock wave across currency markets all around the world. Biden and Yellen had weaponized the US’s own national currency, which hitherto had been an untouchable step in international relations for nations that were not actually at war. Countries like China and India with large economies then realized that the US Treasury Department and the dominance of the dollar as an exchange currency had now become a weapon of war and a serious threat to the economies of all other nations.

As a consequence, the US Dollar is right now being rejected by many nations as the world’s reserve currency. Some nations all over the world have agreed to use the Chinese Yuan and Indian Rupee for any-and-all international currency transactions. Saudi Arabia continues to use the petrodollar but does not demand it. Recently, Saudi Crown Prince Mohammed bin Salman and Chinese President Xi Jinping agreed to permit the Saudis to sell oil to China in Yuan. Saudi Arabia, the world’s largest oil exporter, is now allowing multiple currencies to be used to purchase its oil, a major attack on the primacy of the US dollar and it also has accepted Chinese mediation to mend fences with the US and Israel’s arch enemy Iran. And the Saudis have even more recently refused a Biden Administration request that it start pumping more oil to reduce energy costs, signaling that the shift is both political and economic in nature. Japan, a major economy, has also started purchasing oil and gas directly from Russia against the US imposed energy embargo while Brazil, another major economy, has agreed to use the Yuan in its increasing trade with China. As fewer nations utilize the US dollar, America’s ability to export and ignore its burgeoning domestic debt and inflation to other countries is being diminished.

This might have a decisive impact on the US currency as the drive to break with the petrodollar continues to grow and could produce something like a “perfect storm” impacting on the US economy. It threatens to drastically lower the standards of living of nearly all Americans within the next several years as the dollar loses value and purchasing power. As the US economy is heavily interconnected with many European economies, Europe is also likely to be a victim of the coming disaster.

The good news, of course, is that the United States will no longer be able to afford its endless wars and international interventions. Lacking its economic power, it will no longer be able to declare itself “exceptional” and the enforcer of a “rules based international order.” It would mean an ending of the funding of developments like the Ukraine proxy war and the troops will have to come home from places like Syria and Somalia. And it might even mark the ending of sending billions of dollars annually to a wealthy Israel.

Ending dollar supremacy would inevitably have an immediate impact on what passes for US foreign policy, making it more difficult for Washington to initiate and sustain Treasury Department sanctions on countries like Iran and North Korea. It could also create economic turmoil for many countries until the situation resolves itself by producing greater volatility in currency markets worldwide. The Federal Reserve Bank will no doubt respond to the unfolding crisis by acting as it always does by raising interest rates to astronomical levels, thereby hurting most the Americans who can least afford the shock therapy.

And it did not have to turn out this way. It could have been avoided. If the US, which had no horse in the race, had left Ukraine alone Vladimir Putin would not have become a symbol of defiance against the “Rules Based International Order” and he would not have worked with China to establish multipolarity in the way the financial world operates. Instead, we have a situation where Europe is being de-industrialized due to soaring energy prices and Washington’s destruction of the Nord Stream pipelines while the US is potentially confronting economic disaster as the dollar’s relevance to international trade sinks. The ultimate irony is that Russia, and also the US/Israeli arch enemy Iran, are by comparison doing quite well economically as they sell their oil and gas to anyone in any currency. One has to conclude that when US Treasury Secretary Janet Yellen recently made her secret trip to Kiev to promise the despicable Volodymyr Zelensky billions of taxpayer dollars the United States might just have been better served if she had stayed in Washington and made some minimal effort to address the mounting economic problems confronting us here at home.

Where the $1.3 Trillion Per Year U.S. Military Budget Goes

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By Eric Zuesse

Source: The Duran

Nobody can give a precise dollar-number to U.S. ‘Defense’ spending because the U.S. ‘Defense’ Department has never been able to pass an audit, and is by far the most corrupt of all federal Departments (and is the ONLY Department that has never passed an audit), and also because much of America’s military spending is being paid out from other federal Departments in order to keep down the published annual U.S. Government ‘Defense’ expenditure numbers (which come from ONLY the “U.S. ‘Defense’ Department). Those are expenditures for America’s privatized and overwhelmingly profit-driven Military-Industrial Complex. (By contrast: Russia and China require, by law, that their armaments-firms be majority-owned by the Government itself.)

According to the best available estimates, the U.S. Government has been spending, in total, for over a decade now, around $1.3T to $1.5T annually on ‘defense’, and this is around half of all military spending worldwide by all 200-or-so nations, and is more than half (around 53%) of all of the U.S. federal Government’s ‘discretionary’ (or congressionally voted for) annual expenditures.

Unlike regular manufacturers, which sell entirely or mainly to consumers and to businesses, not to their Government, armament-firms need to control their Government in order to control their markets (which are their Government and its ‘allied’ Governments — including NATO), and so they (in purely capitalist countries such as the U.S.) do control their Government. This is why the armaments-business (except in countries whose armaments-sector is socialized) is infamously corrupt. In order to hide the extent of that corruption (and to promote ever-higher military spending), the ‘news’-media need — in those countries — to be likewise effectively controlled by the investors in those firms.

Consequently, America, which has no national-security threat from any country (so, these astronomical ‘defense’-expenditures are blatantly inappropriate), spends annually around half of all of the money that the entire world spends on the military. And most of that money gets paid to its armaments-firms. Or, as Stephen Semler, an expert on these matters, put it regarding last year’s numbers, “How much of the $858 billion authorized by the FY2023 NDAA will be transferred to military contractors? I estimate $452 billion.” That is 52% of the 53% of the federal Government’s discretionary spending that is being allocated to ‘Defense’. Thus, 26% of the money that Congress authorizes the U.S. federal Government to pay each year, goes to military contractors. Thus: if $452B is going to armaments-firms, and if $1.356T is going to ‘defense’ (both of which are reasonable estimates), then one-third of ‘defense’ spending goes to armaments-firms, and that is around 17% of the money that the U.S. Government pays each year for everything (including non-discretionary).

If this had not been happening each year after the end of the Soviet Union in 1991, then the current U.S. federal debt would be far less, if any at all — but, in any case, that expense (which went, and is going, to exceptionally rich individuals) will be paid by future generations of Americans, by means of both increased taxes and reduced services from the U.S. Government. What pays for bombs (and funds the purchase of yachts) today will be taken from everyone’s infants tomorrow. And it is taking millions of lives in the targeted lands, and has been doing so for decades now. A psychopathic U.S. Government is producing these results.

America’s ‘Defense’ Department is so corrupt that when I happened recently to be re-reading my 14 January 2020 article about its corruptness, “US Military Spending: TRILLIONS of Dollars Unaccounted For”, yet a new detail of this corruptness, which I had not previously noticed, struck me. It happened in this passage:

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Mick West, who blogs as metabunk, is a propagandist for the “Establishment” or the billionaires’ preferences of what the public should believe; and, on 16 May 2018, he headlined “Debunked: Missing $21 Trillion / $6.5 Trillion / $2.3 Trillion – Journal Vouchers”.

He presented a representative of America’s Military-Industrial Complex (MIC) asserting, to US House members, that “this is not a new story, it dates back to 2001 and before,”.

And, West noted:

“All these things are accounting things that, as Norquist says ‘occur after the money is spent’. They are things that you want to get right in your accounting, but if you get the values wrong then it does not mean you’ve lost the money. It means you’ve got some estimate wrong, and you’ll put to little or to much [West meant “too much or too little”] in one fund or another.”

Referring, then, to the $21 trillion, he wrote:

“This is just more of the same though, still not missing money, still just unsupported accounting information transfers.”

However, only a sucker would take that casual attitude to the enormous amount of money in the ‘defense’ budget that is “unsupported” as to who received it, and whether or not those payments were in accord with what Congress had actually authorized.

Furthermore, such a casual attitude toward US ‘defense’-expenditures — the expenditures which constitute actually over half of the US federal Government’s discretionary expenditures, and even around half of the total world’s military expenditures — is an invitation to corruption in over half of this Government’s annually authorized spending; and any intelligent person would expect that such an invitation would be taken advantage of by insiders who are in a position to benefit from it.

West quotes from only one alleged authority, the “Defense Department Comptroller, David L. Norquist,” a person who is largely responsible for the problem, who said “it’s an accounting problem that does need to be solved because it can help hide other underlying issues,” but (at 1:43 in the accompanying video) “it’s not the same thing as not being able to account for money that Congress has given you to spend, but it’s still a problem that needs to be fixed.”

Mick West simply trusted this statement, by Norquist — though Norquist is one of the officials responsible for the problem — but Norquist failed to prove (and wasn’t even asked to prove) it, by the Representatives whom he was there addressing, who didn’t seem to be alarmed about where that $21T actually went) his key assertion, that “it’s not the same thing as not being able to account for money that Congress has given you to spend.”

Even if that assertion is true (which should not be assumed, and which even seems ludicrous on its very face), the problem is unquestionably an invitation to corruption in ‘defense’-expenditures, and those are precisely the type of federal expenditures that overwhelmingly dominate the income to the federal Government’s contractors, the corporations that make all or most of their profits from sales to the federal Government and to its allied governments (such as to the Saud family).

Therefore, casually allowing — and not even investigating as being possibly treasonous — these expenditures, is, itself, enormously scandalous, but the Representatives there were treating it so casually.

In fact, at the very opening of the hearing, which was held on 10 January 2018 (at 02:12 in the video of the 1:41:33-long hearing, above) the Chairman of the Committee emphasized the “We must spend more” on the military, even though we already spend around half of the entire world’s military expenditures. Manifestly, this hearing was a charade.

In the full video, the passage that Mick West quoted from is at 18:00-22:00, and the Representatives were clearly on the side of the charade, not on the side of the American people. Clearly, all members of that Committee, the House Armed Services Committee, behave as if they are in the pockets of firms such as Lockheed Martin.

On 15 November 2018, Reuters headlined “Pentagon fails its first-ever audit, official says”, and reported that: “‘We failed the audit, but we never expected to pass it,’ Deputy Secretary of Defense Patrick Shanahan told reporters.”

On 27 November 2018, The Nation headlined “Exclusive: The Pentagon’s Massive Accounting Fraud Exposed” and David Lindorff opened:

“On November 15, Ernst & Young and other private firms that were hired to audit the Pentagon announced that they could not complete the job. Congress had ordered an independent audit of the Department of Defense, the government’s largest discretionary cost center — the Pentagon receives 54 cents out of every dollar in federal appropriations — after the Pentagon failed for decades to audit itself. The firms concluded, however, that the DoD’s financial records were riddled with so many bookkeeping deficiencies, irregularities, and errors that a reliable audit was simply impossible.”

So, that was the result of the latest version of this charade, which is virtual treason by the Federal Government.

In short: Congress is satisfied for this situation to continue, and the members of Congress evidently have no fear that the voters back home will vote against them if a challenger makes this issue a major issue in that Senator’s or Representative’s next Party primary.

The presumption is that the voters don’t care, and that the ‘news’-media won’t enlighten the voters about this matter, and about how it impacts, for example, which nations the US will categorize as being an “ally,” to sell weapons to, and which nations it will categorize as being an “enemy,” to target for conquest.

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So, what now struck me now was the name there, “David Norquist.” Maybe you remember the famous libertarian phrase about spending by the U.S. federal Government, that the libertarian goal is to “shrink it down to the size where we can drown it in the bathtub.” Here is one of the many articles that were published about that:

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https://www.ussc.edu.au/analysis/grover-norquists-no-tax-call-a-wedge-for-republicans

10 December 2012

GROVER NORQUIST’S NO-TAX CALL A WEDGE FOR REPUBLICANS


  • By     Dr Nicole Hemmer, Honorary Associate, United States Studies Centre

“Who the hell is Grover Norquist, anyway?”

The question came from former US president George HW Bush this northern summer, but in the past few weeks many Americans have been asking the same thing.

Norquist, an anti-tax activist, now dominates discussion of the fiscal cliff. His “no-new-taxes” pledge has been signed by nearly every Republican in congress. The problem? To avoid going off that fiscal cliff, congress must make a “grand bargain” by January 1. If it doesn’t include tax rate increases, President Barack Obama won’t sign it into law.

Republicans are in a bind. They could agree to tax-rate increases on Americans making more than $US250,000 a year in return for cuts to programs such as Medicare. That, however, would mean breaking Norquist’s pledge. And Norquist has made it clear that any Republican who does so will face a primary challenge in the next election.

So, to echo Bush: “Who the hell is Grover Norquist, anyway?”

Norquist runs Americans for Tax Reform, an anti-tax organisation he founded in 1986.

His opposition to taxation is an expression of his deep disdain for government. “I don’t want to abolish government,” he famously quipped. “I just want to shrink it down to the size where we can drown it in the bathtub.”

This “starve the beast” mentality has long been a conservative strategy for reducing the size of government. A strict diet of diminishing revenues, anti-tax advocates argue, will naturally lead to a smaller federal state.

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As it turns out, David Norquist and Grover Norquist are brothers. So: while David Norquist makes money by fronting for the billionaires who control firms such as Lockheed Martin Corporation, Grover Norquist makes money by fronting for the billionaires who control firms such as Lockheed Martin Corporation. David does it by rationalizing away those peoples’ corruptness as being a concern for U.S. taxpayers; and Grover does it by leading the Republican argument against the Government’s non-‘defense’ spending. (While Republicans want to reduce non-‘defense’-spending, they want to increase ‘defense’-spending. Democrats want to increase all federal spending, but ESPECIALLY for ‘defense’.)

The standard libertarian claim that “shrinking the government” is at all an issue or what motivates their wealthiest donors whom they are actually fronting for, is a lie. The only real issue that is involved here is: Who is, and who isn’t, getting the Government’s money.

All of federal politicians’ talk about the need to eliminate “waste, fraud and abuse” is also lies, because they themselves — those federal office-holders — got there and stay there by participating in it. If they’re not corrupt, they’re not in office, because this system is built upon corruption.

Whereas Republican billionaires demand that all federal expenditures except for ‘defense’ get slashed, Democratic billionaires demand that all federal expenditures get slashed but that ‘defense’ spending must never be reduced. So: what’s the real difference (except for the hypocritical rhetoric on the Democratic or “liberal” side)? The billionaires who control those arms-contracting companies control also which contenders for federal offices will become elected.

And here is how one of the billionaires’ ‘news’-media (in this case, the “Fact Check” columnist at the New York Times), on 3 December 2018, cited uncritically David Norquist’s fraudulent argument that nothing more was involved here than an accounting-problem — as-if those congressional and ‘Defense’ Department officials were upholding their obligations to THEIR “stockholders,” who are all U.S. citizens — by continuing to tolerate unauditable financial books at the largest federal Department: “The Misleading Claim That $21 Trillion in Misspent Pentagon Funds Could Pay for ‘Medicare for All’: Representative-elect Alexandria Ocasio-Cortez, the rising liberal star, cited a figure that refers to nearly two decades of internal financial adjustments, not actual spending.” And even the grandstanding ‘progressives’ in Congress did not take to task that lying ‘news’-medium for attacking them on a mere sub-allegation to the real issue here, which was the enormous corruptness that inevitably stands behind all of this.

The only way for an authentic progressive political candidate to deal with this is to declare publicly (and to document it by means of linked-to-evidence news-reports online, like the present one) that ‘our’ Government and media are controlled by the organized mega-crooks, who are this nation’s wealthiest individuals — the only group of individuals who benefit from it — who are this nation’s actual enemies: its corrupters. But, of course, no billionaire will fund such a campaign, and any news-medium that reports on it (except by lying against it) will likewise get no investors.

That is how bad that the situation really is. People need to be discussing this, in public, here and elsewhere. Because that is the problem. It is the problem that needs to be fixed. But how can it be done? And THAT is the question.

PS: Preliminary reports suggest that on account of this Government’s dual World War III against both Russia and China, the ‘Defense’ budget for next year will probably soar perhaps more than by 10%. The Congress now is well over 95% neoconservatives, in both houses. They’ve virtually all been bought.

Austerity, War & Dictatorship… the Charade of Western Democracy Is Over. Can We Lose Those Chains?

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By Finian Cunningham

Source: Strategic Culture Foundation

Western liberal democracy and its ubiquitous “austerity economics” is a euphemism for fascism. And the charade is finally coming to an end.

Western liberal democracy and its ubiquitous “austerity economics” is a euphemism for fascism. And the charade is finally coming to an end.

Austerity is not some recent policy under neoliberal capitalism. It was born out of the historic crisis in the Western system following the First World War and during the 1930s when fascism became a way to curtail any democratic challenge to the prevailing capitalist system.

That political instrument of repression is wielded today across all Western states. Quite amazingly, for a long time, few people recognized their captive, repressive state as fascism. We generally lived under the illusion that we were free citizens in “liberal democracies”.

In this interview, Clara E Mattei explains how the technocratic-sounding “austerity” is used to hide the brutal reality of dictatorship and repression against the vast majority of citizen workers in Western states.

Clara Mattei is an Assistant Professor in the Economics Department of The New School for Social Research, New York. She is the author of The Capital Order: How Economists Invented Austerity and Paved the Way to Fascism.

Her book investigates the origins of austerity as an economic policy after the crisis of World War One. Crucially, she argues that austerity is not merely about governments balancing financial budgets. Professor Mattei contends that austerity policy implemented by all Western governments is a political instrument of mass repression to prevent any challenge to the prevailing capitalist order.

Austerity forces the vast majority to accept unacceptable conditions that are otherwise shockingly anti-democratic. The precariousness and insecurity of employment, the widespread denial of social services, deprivation and poverty, and the relentless abuse of taxes and resources that are fueling insane militarism and war.

If we really did live in free, democratic societies why are such deformities enforced without any alternative? Austerity is used to crush the political imagination for any reasonable, more humane, more peaceful alternative.

However, as Clara Mattei points out in this interview, the extreme anti-democratic conditions in Western societies are inevitably forcing greater numbers of people to question the injustices and hideous anomalies of the prevailing capitalist order.

People are realizing that Western governments are in reality regimes of repression in service for the enrichment of a minority. That fundamental deformity is why Western societies are collapsing and why the United States and its Western lackeys are driven to increasing conflict against Russia and China.

The charade of “Western democracy” is coming to an end. The rulers and their pantomime political parties are losing the moral authority to hold power over the masses.

As people necessarily seek ways to reinvent societies that are fit for meeting their democratic needs, socialist solutions are beckoning. We have to throw off the mental shackles imposed by our dictators, and realize, as Karl Marx once eloquently said, that we have got nothing to lose except our chains.

Here’s How We’ll Have Labor Shortages and High Unemployment at the Same Time

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By Charles Hugh Smith

Source: Of Two Minds

This is how we’ll end up with severe shortages of truly skilled labor and high unemployment of those who lack the necessary skills.

The labor force and the job market are referred to as if they were monolithic structures. But they’re not monolithic, they are complex aggregates of very different cohorts of age, skills, mobility, education, experience, opportunity, potential and motivation.

As a result, numbers such as the unemployment rate tell us very little about the labor force and the job market in terms of what matters going forward. So what does matter going forward?

1. Demographics–the aging and retirement of key sectors of the work force.

2. Skills and experience that will be increasingly scarce due to mismatched demand for skills that are diminishing as older workers retire.

3. What skills and experience will be demanded by re-industrialization, reshoring and expanding the electrification of the economy.

Consider these two charts of the US work force by age. (Courtesy of CH @econimica) In the first chart, Total US Employees, note that the prime working age work force (ages 25-54) has been flatlined for the past 20 years at 101-102 million. In contrast, the 55-and-older cohort of employees soared from 17 million to 37 million. This increase of 20 million accounts for virtually all growth in the employed work force.

A funny thing happens as workers get old; they retire and leave the work force. Their skills and experience are no longer available to employers or the nation’s economy. The second chart shows the aging of the American populace, as the 55+ cohort increased from 57 million to 99 million since 2000, as the number of older employees skyrocketed from 17 million to 37 million.

While the total US population increased by 18% from 281 million in 2000 to 331 million today, the 55+ cohort increased 74% (from 57 million to 99 million).

The key takeaway here is the number of experienced workers who will retire in the next decade will track the explosive growth in the 55+ cohort. The general consensus is this will not be a problem because there are plenty of younger workers available to fill the vacated slots.

But this overlooks the qualitative and quantitative differences in the millions leaving the work force and those joining the work force. This is especially consequential in real-world jobs, i.e. all those jobs that require engaging real-world materials rather than staring at screens.

Though few analysts and commentators will admit to it, the implicit assumption is that the jobs that matter all involve staring at screens–processing data, finance, entertainment and shaping narrative make the world go round. All the real-world stuff (boring!) will magically get done by tax donkeys who are out of sight, out of mind.

This mindset has it backwards: it’s the real-world work of changing the industrial / energy / energy distribution foundation of the economy that matters going forward, not the staring-at-screens jobs.

What few seem to realize is the work force that’s aging and retiring is the cohort with the real-world skills. It’s a nice idea to remake the entire electrical grid of the nation to transport much larger quantities of electrical power, but who’s going to do all that work? Young people whose career goals are becoming YouTube influencers or day-traders? No. All the ChatAI bots in the world aren’t going to get the real work done, either.

In other words, there is a massive mismatch between the skills available to hire in the young-worker cohort and the skills and experience needed to rebuild the material, real-world foundations of the US economy. It’s well-known but apparently not worth worrying about that the average age of the US farmer is pushing 60 years of age. Nobody left to grow all our food? Hey, isn’t there a ChatAI bot to do all that for us? It can all be automated, right? No? Well, why not? Somebody out there, get it done! Food in super-abundance should be delivered to everyone staring at screens 24/7, it’s our birthright.

The average age of skilled tradespeople is also skewed to the aging work force. There is no easy way to quantify real-world skills gained by on-the-job experience. I suspect it follows a power-law distribution: the newly minted worker just out of school / apprenticeship can handle basic functions, but when tough problems arise, the number of workers with the requisite experience to diagnose and fix the problem diminishes rapidly.

This distribution presents an enormous problem for the economy and employers. Once the super-experienced workers who can solve any problem leave, they cannot be replaced by inexperienced workers. So when the really big problems arise, the systems will break down because those who knew how to deal with the problems are no longer available.

This is how you can have 10 million unemployed workers and 1 million unfilled positions that can’t be filled because few are truly qualified. You want to erect new electrical transmission lines? Nice, but you’re not going to get the job done with green workers accustomed to staring at screens. It takes years of hard labor to acquire even a bare minimum of the skills required. These are not assembly-line jobs that can be filled by unskilled labor, these are jobs in the messy real world, not a distribution center.

As I note in my book on Self-Reliance, individuals with a full spectrum of real-world skills are now extremely rare. Skills that were once common are now performed by specialists. We seem to have all the time in the world to stare at hundreds of cooking programs on TV but how many people actually prepare three meals a day, week in, week out, month in, month out, year in, year out? How many people know how to repair anything, build anything, or maintain a machine?

My direct experience is that many young people don’t know how to put air in the tires of the vehicle Mom and Dad gave them. Young people with graduate-level diplomas don’t know what a green bean plant looks like. (Eeew, gross, it grows in dirt?) The cultural value system that only values wealth, regardless of its source, and minting money from staring at screens has generated a fundamental mismatch between the skills that will be needed going forward and the skills being presented as oh-so-valuable.

Yes, there are many young workers with sharp real-world skills. The question is, are there enough?

This is how we’ll end up with severe shortages of truly skilled labor and high unemployment in the cohort of workers with few real-world skills and a surplus of skills for which there is limited demand. As a real-world experiment, go find a tough old rancher and ask them a series of questions about livestock, machinery, fencing, generators, etc., and then ask the average newly minted college graduate that followed the warped values embedded in our economy the same questions.

Of course the young worker can’t match the experience of the old worker, but do they have any experience at all of a spectrum of essential real-world skills? If not, do they have the requisite physical endurance and commitment needed to acquire real-world skills?

Who’s going to do all the real-world work going forward? A few people talk about it as an abstraction, but it’s not an issue to everyone focused on Federal Reserve policy or GDP. But eventually, the real world will matter more than staring at screens and day-trading, because when the systems break down due to lack of truly qualified employees, we’ll all wake up. But by then it will be too late. We’ll be staring at dead screens begging for somebody somewhere to restore power so we can continue playing with ChatAI to trade zero-day options.

New York Times Is Now Telling Bigger Lies Than Iraq WMDs and More Effectively

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By David Swanson

Source: War Is a Crime

The New York Times routinely tells bigger lies than the clumsy nonsense it published about weapons in Iraq. Here’s an example. This package of lies is called “Liberals Have a Blind Spot on Defense” but mentions nothing related to defense. It simply pretends that militarism is defensive by applying that word and by lying that “we face simultaneous and growing military threats from Russia and China.” Seriously? Where?

The U.S. military budget is more than those of most nations of the world combined. Only 29 nations, out of some 200 on Earth, spend even 1 percent what the U.S. does. Of those 29, a full 26 are U.S. weapons customers. Many of those receive free U.S. weapons and/or training and/or have U.S. bases in their countries. Only one non-ally, non-weapons customer (albeit a collaborator in bioweapons research labs) spends over 10% what the U.S. does, namely China, which was at 37% of U.S. spending in 2021 and likely about the same now despite the highly horrifying increases widely reported in the U.S. media and on the floor of Congress. (That’s not considering weapons for Ukraine and various other U.S. expenses.) While the U.S. has planted military bases around Russia and China, neither has a military base anywhere near the United States, and neither has threatened the United States.

Now, if you don’t want to fill the globe with U.S. weaponry and provoke Russia and China on their borders, the New York Times has some additional lies for you: “Defense spending is about as pure an application of a domestic industrial policy — with thousands of good-paying, high-skilled manufacturing jobs — as any other high-tech sector.”

No, it is not.  Just about any other way of spending public dollars, or even not taxing them in the first place, produces more and better jobs.

Here’s a doozie:

“Liberals also used to be hostile to the military on the assumption that it skewed right wing, but that’s a harder argument to make when the right is complaining about a ‘woke military.’”

What in the world would it mean to oppose organized mass murder because it skews right wing? What the hell else could it skew? I oppose militarism because it kills, destroys, damages the Earth, drives homelessness and illness and poverty, prevents global cooperation, tears down the rule of law, prevents self-governance, produces the dumbest pages of the New York Times, fuels bigotry, and militarizes police, and because there are better ways to resolve disputes and to resist the militarism of others. I’m not going to start cheering for mass killings because some general doesn’t hate enough groups.

Then there’s this lie: “The Biden administration touts the size of its $842 billion budget request, and in nominal terms it’s the largest ever. But that fails to account for inflation.”

If you look at U.S. military spending according to SIPRI in constant 2021 dollars from 1949 to now (all the years they provide, with their calculation adjusting for inflation), Obama’s 2011 record will probably fall this year. If you look at actual numbers, not adjusting for inflation, Biden has set a new record each year. If you add in the free weapons for Ukraine, then, even adjusting for inflation, the record fell this past year and will probably be broken again in the coming year.

You’ll hear all sorts of different numbers, depending on what’s included. Most used is probably $886 billion for what Biden has proposed, which includes the military, the nuclear weapons, and some of “Homeland Security.” In the absence of massive public pressure on a topic the public hardly knows exists, we can count on an increase by Congress, plus major new piles of free weapons to Ukraine. For the first time, U.S. military spending (not counting various secret spending, veterans spending, etc.) will likely top $950 billion as predicted here.

War profiteer-funded stink tankers like to view military spending as a philanthropic project to be measured as a percentage of an “economy” or GDP, as if the more money a country has, the more it should spend on organized killing. There are two more sensible ways to look at it. Both can be seen at Mapping Militarism.

One is as simple amounts per nation. In these terms, the U.S. is at a historic high and soaring far, far over the rest of the world.

The other way to look at it is per capita. As with a comparison of absolute spending, one has to travel far down the list to find any of the designated enemies of the U.S. government. But here Russia jumps to the top of that list, spending a full 20% of what the U.S. does per person, while only spending less than 9% in total dollars. In contrast, China slides down the list, spending less than 9% per person what the United States does, while spending 37% in absolute dollars. Iran, meanwhile, spends 5% per capita what the U.S. does, compared to just over 1% in total spending.

Our New York Times friend writes that the U.S. needs to spend more to dominate four oceans, while China need worry only about one.  But here the U.S. desire to treat economic competition as a form of war blinds the commentator to the fact that a lack of war facilitates economic success. As Jimmy Carter told Donald Trump, “Since 1979, do you know how many times China has been at war with anybody? None. And we have stayed at war. . . . China has not wasted a single penny on war, and that’s why they’re ahead of us. In almost every way.”

But you could drop the idiotic economic competition and still understand the benefits of investing in something other than death since tiny fractions of military spending could transform the United States and the rest of the world. Surely there would remain plenty of other things to lie about.

How Does Degrowth Apply to Our Minds?

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By Erin Remblance

Source: resilience

As an Australian, it troubles me that if the whole world lived like us, we would need 4.5 planet Earths. Thanks to over-consuming nations like mine, worldwide we are living as if we have 1.75 planet Earths, a figure that has increased from 1 (that is, living within our means) since 1970. What this boils down to is that those of us in the global north are taking from both countries in the global south and future generations to fuel our lifestyles today. The ‘Earth Overshoot’ research is supported by the work of the late Earth System Scientist, Professor Will Steffen, who brought to our attention The Great Acceleration, whereby “[a]fter 1950 we can see that major Earth System changes became directly linked to changes largely related to the global economic system.” Steffen is referring to our growth-based economies, and while three percent economic growth each year might sound small, it means that within 24 years we will be consuming twice as many resources as today, and within 100 years 19 times as many. As economist Kenneth Boulding said: “[a]nyone who believes that exponential growth can go on forever in a finite world is either a madman or an economist.”

For this reason, I am a big proponent of degrowth in over-consuming nations in order to fit back within planetary boundaries. For anyone not familiar with the term, degrowth is a planned, democratic reduction in material and energy use in high-income nations while improving the well-being of people in those nations. It is more than this though. While very often the focus of degrowth is on how life can be better in a smaller economy, Federico Demaria and Serge Latouche argue that “[t]he point of degrowth is to escape from a society that is absorbed by the fetishism of growth…. It implies decolonization of the imaginary and the implementation of other possible worlds”. In this respect, the former definition of degrowth applies only to over-consuming nations, while the latter definition applies to all nations, and to all people. It is this second definition of degrowth to which this essay relates.

The concept of degrowth is powerful because it is clear that we need systemic change to avoid ecological collapse: business as usual with a “green tinge” isn’t going to be enough. It is also true that individual change drives cultural change which can be the key to unlocking political change leading to fundamental change. On this point, I find it fascinating to consider how “growth has entered our minds and souls”, and how an awareness of these “mental infrastructures of growth” might free us from growthism and help unlock the cultural changes that will bring about the necessary systemic changes.

With this in mind, here are a couple of points to consider in relation to how growth may be enshrined in the psychological structure of our collective minds, largely based on the work of Harald Welzer:

  • Our dreams for the future are centred around it being better than today, in the sense of ‘more’ (e.g., a bigger house, a larger salary, more travel).
  • We see ourselves as something to continually develop and optimise, our lives are seen as a process of creating biographies or filling curriculum vitae.
  • While we used to see paid labour as drudgery and something we did until we had met our needs, now we view it as noble, esteemed even, to be sought out and with no end. Sadly, this cultural 180° turnaround becomes a regret of many as they are dying.
  • Similarly, society views ‘hard-work’ as virtuous and thus ‘hard-work’ entitles those who undertake it to whatever their heart desires without limit or consideration of the harm caused, their purchases being the fruits of their labour.
  • We typically live by the rhythms of the industrial workday via a standardised worldwide time regime, unaware that there is a natural rhythm of time (for example, consider that in 2023 there will be 13 moons but only 12 calendar months or that, on the whole, our pace of work is unchanged by the seasons).
  • It is a collective belief that we should be able to own parcels of land, excluding others from that land. An example of this is that home (and correspondingly land) ownership in Australia is described as the ‘Great Australian Dream’, a term derived from the ‘American Dream’ of the same nature.

In various ways, these – and probably many more aspects of our modern day lives – relate back to the surpluses created by industrialisation (enabling the future to have more than today, a concept that is “historically quite recent”), the enclosure of the commons (the very foundation of growth-dependent capitalism) and the subsequent imperative to work to have our needs met (rather than simply being able to directly meet our needs). Our ability to recognise and unpick these ‘mental infrastructures’ – that is, the worldview that influences all of our actions – will be key to throwing off the shackles of growth and unlocking a culture of sufficiency, whereby we recognise when we have ‘enough’ in a material sense and from then on meet our “nonmaterial needs nonmaterially”, increasing our sense of wellbeing and contentment.

The work of Antonio Gramsci on cultural hegemony is relevant in unlocking a culture of sufficiency. Michael Mezz describes Gramsci’s theory on how the ruling class maintains power via a cultural form of dominance:

“…the ruling class creates an ideology in which its own values become common sense for the rest of society and Gramsci argued that the role of the state is to maintain institutions such as media and the education system that educate the masses on the cultural ideology of the ruling class. The goal of that education being that the working class develop a sense of freedom and a good life that serves the purposes of the people in power. In other words, the working class starts to value things like innovation and productivity and economic growth that doesn’t actually serve them.”

Gramsci tells us that the way to overcome cultural hegemony is by creating a new culture that is not based on the values of the ruling class. A counter-culture, if you like.

So, what are the counter-hegemonic narratives that we can begin to embrace? What would a mind and soul not infiltrated by growth look like? There is much to learn from indigenous cultures on this topic. As Jeff Sparrow highlights in his book, Crimes Against Nature, First Nation Australians found paid labour to be antithetical to their egalitarian lifestyles:

“Today, we take the wages system for granted. It appears normal, almost eternal, since we can barely conceive of an alternative. It did not seem normal to pre-colonial people. In Australia, as elsewhere in the world, they found capitalist practices utterly horrifying…. Indigenous people, accustomed to an egalitarian ethos and to work carried out for the collective good, saw the authority exerted by employers as tyranny. As late as 1888, a churchman complained of the difficulty he had in persuading Indigenous people that one man was innately better than another, that a certain individual, by virtue of his possessions, mandated obedience from his fellows…. Indigenous people did not despise wage labour primarily because of the effort that it entailed. Rather, they thought the work demanded by capitalists stripped life of its humanity.”

Furthermore, First Nations people lived with the rhythms of nature, not the industrial workday, and there was no private land ownership, they had the wisdom to know that “… you are undone if you once forget that the fruits of the earth belong to us all, and the earth itself to nobody” (Jean-Jacques Rousseau).

There are many examples of counter-hegemonic narratives arising more recently too. The following list is skewed more towards examples from the global North because the global North represents the vast majority of the over-consumption and is therefore where cultural change is most needed. Such examples include:

  • Those people, like the Futuresteaders and others who practice voluntary simplicity and frugal abundance, who appreciate the simple things in life, and find happiness in what they have rather than what they want. Seeking only ‘enough’ and not ‘more’ represents an affront to the dominant culture of dreams of the future being materially greater than today. This point is relevant only to those whose needs are already met. Of course, those who are living in conditions of deprivation should have access to ‘more’, until they too have ‘enough’.
  • People who choose to spend their time doing work that is traditionally undervalued and lacking in both career trajectory and pay increases, but is socially valuable, forgoing future surpluses (think of the stay-at-home parents, childcare workers, teachers, nurses, carers, small farmers, those who work part-time voluntarily, and those who volunteer their time to worthy but under-funded causes).
  • The move towards minimalism which seeks to value time and non-material items over ‘the grind’ and the accumulation of things as a reward for hard work. The Tiny House Movement shows us that it is possible to enjoy living with less, including the freedom of a smaller mortgage.
  • The tang ping (lying flat) movement in China and quiet quitting in the U.S.A. are taking back our right to be humans, not simply workers who devote more time than they would like to paid labour.
  • Anyone advocating for job guarantees, enabling anyone who wants to work to do so. Job guarantees seek to remove the artificial scarcity of employment we see today, where the threat of joblessness looms ever large and we constantly need to better ourselves so that we can compete for work. Those who advocate for a Universal Basic Income – an unconditional liveable wage for all – are fighting to remove the need for waged employment at all.
  • People organising for the community rather than the individual are prioritising others over their own interests, giving up the opportunity to build their own CVs in favour of the greater good, and there are some wonderful examples of such union building here, here and here.
  • The move towards a 4-day work week challenges the dominant narrative that more time at work is better.
  • The Nap Ministry and the related manifesto Rest Is Resistance empowers us to value rest over productivity.
  • The many activists calling out the harm caused by the carbon-intensive lifestyles revered by the dominant culture, such as Greta Thunberg (who beautifully articulated in her book, The Climate Book, that “we all have a responsibility to find quick ways of making that [extremely high-emitting] lifestyle socially unacceptable”), activists who block private jets, people promoting going flight free, and those seeking to reduce the dominance of cars on our streets. For these people, simply having the means to live a materially intensive lifestyle – regardless of the hard work involved in acquiring those means – isn’t enough to justify the harm it causes.
  • The locals of the Greek Island Ikaria, who do things in their own time, not that of the industrial workday. This fascinating paper describes “people arriving to appointments in ‘Ikarian time’, that is, a ‘few hours late’ or shopkeepers telling bewildered tourists that ‘the shop will open when it is time to open’”.
  • Co-operative housing, community land trusts and Vienna’s enviable form of social housing show us that there are other ways of providing a community’s housing and land needs that don’t rely on private ownership.

There are, of course, many other wonderful counter-culture examples beyond this short list – this is merely scratching the surface – but the point is that we need to advance these, and those of the same theme, until they become the leading narrative.

Unpicking the dominant, growth-based worldview will mean closely analysing the stories we have been told (and who those stories might serve), and bravely and courageously assessing whether all of this growth really does bring us ‘the good life’. We will likely find that we can achieve ‘a good life’ (that is, harmony with ourselves, our community, and the physical world) by living simpler but more meaningful lives. Perhaps we will even come to realise the very wise words of English writer, Alan Watts: “the meaning of life is just to be alive. It is so plain and so obvious and so simple. And yet, everybody rushes around in a great panic as if it were necessary to achieve something beyond themselves”. The way that growth manifests in our minds, our thoughts, our dreams, and our souls is important to consider because if we can create a culture of sufficiency, we will have found the key to systemic change and avoiding ecological catastrophe. I’m sure we can all agree that this is a worthy task indeed.

Fiscal Insanity: The Government Borrows $6 Billion a Day, and We’re Stuck with the Bill

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By John & Nisha Whitehead

Source: The Rutherford Institute

We’re not living the American dream.

We’re living a financial nightmare.

The U.S. government is funding its existence with a credit card.

The government—and that includes the current administration—is spending money it doesn’t have on programs it can’t afford, and “we the taxpayers” are the ones being forced to foot the bill for the government’s fiscal insanity.

According to the number crunchers with the Committee for a Responsible Federal Budget, the government is borrowing roughly $6 billion a day.

As the Editorial Board for the Washington Post warns:

“The nation has reached a hazardous moment where what it owes, as a percentage of the total size of the economy, is the highest since World War II. If nothing changes, the United States will soon be in an uncharted scenario that weakens its national security, imperils its ability to invest in the future, unfairly burdens generations to come, and will require cuts to critical programs such as Social Security and Medicare. It is not a future anyone wants.”

Let’s talk numbers, shall we?

The national debt (the amount the federal government has borrowed over the years and must pay back) is $31 trillion and will grow another $19 trillion by 2033. That translates to roughly $246,000 per taxpayer or $94,000 for every single person in the country.

The bulk of that debt has been amassed over the past two decades, thanks in large part to the fiscal shenanigans of four presidents, 10 sessions of Congress and two wars.

It’s estimated that the amount this country owes is now 130% greater than its gross domestic product (all the products and services produced in one year by labor and property supplied by the citizens).

In other words, the government is spending more than it brings in.

The U.S. ranks as the 12th most indebted nation in the world, with much of that debt owed to the Federal Reserve, large investment funds and foreign governments, namely, Japan and China.

Interest payments on the national debt are estimated to top $395 billion this year, which is significantly more than the government spends on veterans’ benefits and services, and according to Pew Research Center, more than it will spend on elementary and secondary education, disaster relief, agriculture, science and space programs, foreign aid, and natural resources and environmental protection combined.

According to the Committee for a Reasonable Federal Budget, the interest we’ve paid on this borrowed money is “nearly twice what the federal government will spend on transportation infrastructure, over four times as much as it will spend on K-12 education, almost four times what it will spend on housing, and over eight times what it will spend on science, space, and technology.”

In ten years, those interest payments will exceed our entire military budget.

This is financial tyranny.

We’ve been sold a bill of goods by politicians promising to pay down the national debt, jumpstart the economy, rebuild our infrastructure, secure our borders, ensure our security, and make us all healthy, wealthy and happy.

None of that has come to pass, and yet we’re still being loaded down with debt not of our own making while the government remains unrepentant, unfazed and undeterred in its wanton spending.

Indeed, the national deficit (the difference between what the government spends and the revenue it takes in) remains at more than $1.5 trillion.

If Americans managed their personal finances the way the government mismanages the nation’s finances, we’d all be in debtors’ prison by now.

Despite the government propaganda being peddled by the politicians and news media, however, the government isn’t spending our tax dollars to make our lives better.

We’re being robbed blind so the governmental elite can get richer.

In the eyes of the government, “we the people, the voters, the consumers, and the taxpayers” are little more than pocketbooks waiting to be picked.

“We the people” have become the new, permanent underclass in America.

Consider: The government can seize your home and your car (which you’ve bought and paid for) over nonpayment of taxes. Government agents can freeze and seize your bank accounts and other valuables if they merely “suspect” wrongdoing. And the IRS insists on getting the first cut of your salary to pay for government programs over which you have no say.

We have no real say in how the government runs, or how our taxpayer funds are used, but we’re being forced to pay through the nose, anyhow.

We have no real say, but that doesn’t prevent the government from fleecing us at every turn and forcing us to pay for endless wars that do more to fund the military industrial complex than protect us, pork barrel projects that produce little to nothing, and a police state that serves only to imprison us within its walls.

If you have no choice, no voice, and no real options when it comes to the government’s claims on your property and your money, you’re not free.

It wasn’t always this way, of course.

Early Americans went to war over the inalienable rights described by philosopher John Locke as the natural rights of life, liberty and property.

It didn’t take long, however—a hundred years, in fact—before the American government was laying claim to the citizenry’s property by levying taxes to pay for the Civil War. As the New York Times reports, “Widespread resistance led to its repeal in 1872.”

Determined to claim some of the citizenry’s wealth for its own uses, the government reinstituted the income tax in 1894. Charles Pollock challenged the tax as unconstitutional, and the U.S. Supreme Court ruled in his favor. Pollock’s victory was relatively short-lived. Members of Congress—united in their determination to tax the American people’s income—worked together to adopt a constitutional amendment to overrule the Pollock decision.

On the eve of World War I, in 1913, Congress instituted a permanent income tax by way of the 16th Amendment to the Constitution and the Revenue Act of 1913. Under the Revenue Act, individuals with income exceeding $3,000 could be taxed starting at 1% up to 7% for incomes exceeding $500,000.

It’s all gone downhill from there.

Unsurprisingly, the government has used its tax powers to advance its own imperialistic agendas and the courts have repeatedly upheld the government’s power to penalize or jail those who refused to pay their taxes.

While we’re struggling to get by, and making tough decisions about how to spend what little money actually makes it into our pockets after the federal, state and local governments take their share (this doesn’t include the stealth taxes imposed through tolls, fines and other fiscal penalties), the government continues to do whatever it likes—levy taxes, rack up debt, spend outrageously and irresponsibly—with little thought for the plight of its citizens.

To top it all off, all of those wars the U.S. is so eager to fight abroad are being waged with borrowed funds. As The Atlantic reports, “U.S. leaders are essentially bankrolling the wars with debt, in the form of purchases of U.S. Treasury bonds by U.S.-based entities like pension funds and state and local governments, and by countries like China and Japan.”

Of course, we’re the ones who have to repay that borrowed debt.

For instance, American taxpayers have been forced to shell out more than $5.6 trillion since 9/11 for the military industrial complex’s costly, endless so-called “war on terrorism.” That translates to roughly $23,000 per taxpayer to wage wars abroad, occupy foreign countries, provide financial aid to foreign allies, and fill the pockets of defense contractors and grease the hands of corrupt foreign dignitaries.

Mind you, that’s only a portion of what the Pentagon spends on America’s military empire.

The United States also spends more on foreign aid than any other nation, with nearly $300 billion disbursed over a five-year period. More than 150 countries around the world receive U.S. taxpayer-funded assistance, with most of the funds going to the Middle East, Africa and Asia. That price tag keeps growing, too.

As Forbes reports, “U.S. foreign aid dwarfs the federal funds spent by 48 out of 50 state governments annually. Only the state governments of California and New York spent more federal funds than what the U.S. sent abroad each year to foreign countries.”

Most recently, the U.S. has allocated nearly $115 billion in emergency military and humanitarian aid for Ukraine since the start of the Russia invasion.

As Dwight D. Eisenhower warned in a 1953 speech, this is how the military industrial complex continues to get richer, while the American taxpayer is forced to pay for programs that do little to enhance our lives, ensure our happiness and well-being, or secure our freedoms.

This is no way of life.

Yet it’s not just the government’s endless wars that are bleeding us dry.

We’re also being forced to shell out money for surveillance systems to track our movements, money to further militarize our already militarized police, money to allow the government to raid our homes and bank accounts, money to fund schools where our kids learn nothing about freedom and everything about how to comply, and on and on.

There was a time in our history when our forebears said “enough is enough” and stopped paying their taxes to what they considered an illegitimate government. They stood their ground and refused to support a system that was slowly choking out any attempts at self-governance, and which refused to be held accountable for its crimes against the people. Their resistance sowed the seeds for the revolution that would follow.

Unfortunately, in the 200-plus years since we established our own government, we’ve let bankers, turncoats and number-crunching bureaucrats muddy the waters and pilfer the accounts to such an extent that we’re back where we started.

Once again, we’ve got a despotic regime with an imperial ruler doing as they please.

Once again, we’ve got a judicial system insisting we have no rights under a government which demands that the people march in lockstep with its dictates.

And once again, we’ve got to decide whether we’ll keep marching or break stride and make a turn toward freedom.

But what if we didn’t just pull out our pocketbooks and pony up to the federal government’s outrageous demands for more money?

What if we didn’t just dutifully line up to drop our hard-earned dollars into the collection bucket, no questions asked about how it will be spent?

What if, instead of quietly sending in our tax checks, hoping vainly for some meager return, we did a little calculating of our own and started deducting from our taxes those programs that we refuse to support?

As I make clear in my book Battlefield America: The War on the American People and in its fictional counterpart The Erik Blair Diaries, if we don’t have the right to decide what happens to our hard-earned cash, then we don’t have any rights at all.

Technology and a Tyranny Worse than Prison 

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By Bert Olivier

Source: Brownstone Institute

In an outstanding piece of political-theoretical writing, titled ‘The Threat of Big Other’ (with its play on George Orwell’s ‘Big Brother’) Shoshana Zuboff, succinctly addresses the main issues of her book, The Age of Surveillance Capitalism – The Fight for a Human Future at the New Frontier of Power (New York: Public Affairs, Hachette, 2019), explicitly linking it to Orwell’s 1984. 

Significantly, at the time she reminded readers that Orwell’s goal with 1984 was to alert British and American societies that democracy is not immune to totalitarianism, and that “Totalitarianism, if not fought against, could triumph anywhere” (Orwell, quoted by Zuboff, p. 16). In other words, people are utterly wrong in their belief that totalitarian control of their actions through mass surveillance (as depicted in 1984, captured in the slogan, “Big Brother is watching you”) could only issue from the state, and she does not hesitate to name the source of this threat today (p. 16):

For 19 years, private companies practicing an unprecedented economic logic that I call surveillance capitalism have hijacked the Internet and its digital technologies. Invented at Google in 2000, this new economics covertly claims private human experience as free raw material for translation into behavioural data. Some data are used to improve services, but the rest are turned into computational products that predict your behaviour. These predictions are traded in a new futures market, where surveillance capitalists sell certainty to businesses determined to know what we will do next. 

By now we know that such mass surveillance does not merely have the purpose – if it ever did – of tracking and predicting consumer behaviour with the aim of maximising profits; far from it. It is generally known among those who prefer to remain informed about global developments, and who do not only rely on the legacy media for this, that in China such mass surveillance has reached the point where citizens are tracked through a myriad of cameras in public places, as well as through smartphones, to the point where their behaviour is virtually completely monitored and controlled. 

Small wonder that Klaus Schwab of the World Economic Forum (WEF) does not let an opportunity pass to praise China as the model to be emulated by other countries in this respect. It should therefore come as no surprise that investigative reporter, Whitney Webb, also alluding to Orwell’s prescience, draws attention to the striking similarities between mass surveillance that was developed in the United States (US) in 2020 and Orwell’s depiction of a dystopian society in 1984, first published in 1949. 

In an article titled “Techno-tyranny: How the US national security state is using coronavirus to fulfil an Orwellian vision,” she wrote:

Last year, a government commission called for the US to adopt an AI-driven mass surveillance system far beyond that used in any other country in order to ensure American hegemony in artificial intelligence. Now, many of the ‘obstacles’ they had cited as preventing its implementation are rapidly being removed under the guise of combating the coronavirus crisis.

Webb proceeds to discuss an American government body that focused on researching ways in which artificial intelligence (AI) could promote national security and defence needs, and which provided details concerning the “structural changes” which American society and economy would have to undertake to be able to maintain a technological advantage in relation to China. According to Webb the relevant governmental body recommended that the US follow China’s example in order to surpass the latter, specifically regarding some aspects of AI-driven technology as it pertains to mass surveillance. 

As she also points out, this stance on the desired development of surveillance technology conflicts with (incongruous) public statements by prominent American politicians and government officials, that Chinese AI-technological surveillance systems instantiate a significant threat for Americans’ way of life), which did not, however, prevent the implementation of several stages of such a surveillance operation in the US in 2020. As one knows in retrospect, such implementation was undertaken and justified as part of the American response to Covid-19. 

None of this is new, of course – by now it is well-known that Covid was the excuse to establish and implement Draconian measures of control, and that AI has been an integral part of it. The point I want to make, however, is that one should not be fooled into thinking that strategies of control will end there, nor that the Covid pseudo-vaccines were the last, or worst, of what the would-be rulers of the world can inflict upon us to exercise the total control they wish to achieve – a level of control that would be the envy of the fictional Big Brother society of Orwell’s 1984. 

For example, several critically thinking people have alerted one to the alarming fact that the widely touted Central Bank Digital Currencies (CBDCs) are Trojan horses, with which the neo-fascists driving the current attempt at a ‘great reset’ of society and the world economy aim to gain complete control over people’s lives. 

At first blush the proposed switch from a fractional reserve monetary system to a digital currency system may seem reasonable, particularly in so far as it promises the (dehumanising) ‘convenience’ of a cashless society. As Naomi Wolf has pointed out, however, far more than this is at stake. In the course of a discussion of the threat of ‘vaccine passports’ to democracy, she writes (The Bodies of Others, All Seasons Press, 2022, p. 194):

There is now also a global push toward government-managed digital currencies. With a digital currency, if you’re not a ‘good citizen,’ if you pay to see a movie you shouldn’t see, if you go to a play you shouldn’t go to, which the vaccine passport will know because you have to scan it everywhere you go, then your revenue stream can be shut off or your taxes can be boosted or your bank account won’t function. There is no coming back from this.

I was asked by a reporter, ‘What if Americans don’t adopt this?’

And I said, ‘You’re already talking from a world that’s gone if this succeeds in being rolled out.’ Because if we don’t reject the vaccine passports, there won’t be any choice. There will be no such thing as refusing to adopt it. There won’t be capitalism. There won’t be free assembly. There won’t be privacy. There won’t be choice in anything that you want to do in your life.

And there will be no escape.

 In short, this was something from which there was no returning. If indeed there was a ‘hill to die on,’ this was it. 

This kind of digital currency is already in use in China, and it is being rapidly developed in countries like Britain and Australia, to mention only some.

Wolf is not the only one to warn against the decisive implications that accepting digital currencies would have for democracy. 

Financial gurus such as Catherine Austin Fitts and Melissa Cuimmei have both signalled that it is imperative not to yield to the lies, exhortations, threats and whatever other rhetorical strategies the neo-fascists might employ to force one into this digital financial prison. In an interview where she deftly summarises the current situation of being “at war” with the globalists, Cuimmei has warned that the drive towards digital passports explains the attempt to get young children ‘vaccinated’ en masse: unless they can do so on a large scale, they could not draw children into the digital control system, and the latter would therefore not work. She has also stressed that the refusal to comply is the only way to stop this digital prison from becoming a reality. We have to learn to say “No!”

Why a digital prison, and one far more effective that Orwell’s dystopian society of Oceania? The excerpt from Wolf’s book, above, already indicates that the digital ‘currencies’ that would be shown in your Central World Bank account, would not be money, which you could spend as you saw fit; in effect, they would have the status of programmable vouchers that would dictate what you can and cannot do with them. 

They constitute a prison worse than debt, paralysing as the latter may be; if you don’t play the game of spending them on what is permissible, you could literally be forced to live without food or shelter, that is, eventually to die. Simultaneously, the digital passports of which these currencies would be a part, represent a surveillance system that would record everything you do and wherever you go. Which means that a social credit system of the kind that functions in China, and has been explored in the dystopian television series, Black Mirror, would be built into it, which could make or break you.  

In her The Solari Report, Austin Fitts, for her part, elaborates on what one can do to “stop CBDCs,” which includes the use of cash, as far as possible, limiting one’s dependence on digital transaction options in favour of analog, and using good local banks instead of the banking behemoths, in the process decentralising financial power, which is further strengthened by supporting small local businesses instead of large corporations. 

One should be under no illusion that this will prove to be easy, however. As history has taught us, when dictatorial powers attempt to gain power over people’s lives, resistance on the part of the latter is usually met with force, or ways of neutralising resistance.

As Lena Petrova reports, this was recently demonstrated in Nigeria, which was one of the first countries in the world (Ukraine being another), to introduce CBDCs, and where there was initially a very tepid response from the population, where most people prefer using cash (partly because many cannot afford smartphones). 

Not to be outdone, the Nigerian government resorted to dubious shenanigans, such as printing less money and asking people to hand in their ‘old’ banknotes for ‘new’ ones, which have not materialised. The result? People are starving because they lack cash to buy food, and they do not have, or do not want, CBDCs, partly because they lack smartphones and partly because they resist these digital currencies. 

It is difficult to tell whether Nigerians’ doubts about CBDCs is rooted in their awareness that, once embraced, the digital passport of which these currencies will comprise a part, would allow the government complete surveillance and control of the populace. Time will tell whether Nigerians will accept this Orwellian nightmare lying down.

Which brings me to the significant philosophical point underpinning any argument about resisting the drive for dictatorial power through mass surveillance. As every enlightened person should know, there are different kinds of power. One such variety of power is encapsulated in Immanuel Kant’s famous motto for enlightenment, formulated in his famous 18th-century essay, “What is Enlightenment?” The motto reads: “Sapere aude!” and translates as “Have the courage to think for yourself,” or “Dare to think!” 

This motto may be said to correspond with what contributors to the activities of Brownstone Institute engage in. Hence, the emphasis on critical intellectual engagement is indispensable. But is it sufficient? I would argue that, while speech act theory has demonstrated, accurately – emphasising the pragmatic aspect of language – that speaking (and one could add writing) is already ‘doing something,’ there is another sense of ‘doing.’ 

This is its meaning of acting in the sense one encounters in discourse theory – which demonstrates the interwovenness of speaking (or writing) and acting through the imbrication of language with power relations. What this implies is that language use is intertwined with actions that find their correlate(s) in speaking and writing. This is compatible with Hannah Arendt’s conviction, that of labour, work and action (the components of the vita activa), action – the verbal engagement with others, broadly for political purposes, is the highest embodiment of human activity.

Philosophers Michael Hardt and Antonio Negri have shed important light on the question of the connection between Kant’s “Sapere aude!” and action. In the third volume of their magisterial trilogy, Commonwealth (Cambridge, Mass., Harvard University Press, 2009; the other two volumes being Empire and Multitude), they argue that although Kant’s “major voice” shows that he was indeed an Enlightenment philosopher of the transcendental method, who uncovered the conditions of possibility of certain knowledge of the law-governed phenomenal world, but by implication also of a practical life of dutiful social and political responsibility, there is also a seldom-noticed “minor voice” in Kant’s work. 

This points, according to them, towards an alternative to the modern power complex that Kant’s “major voice” affirms, and it is encountered precisely in his motto, articulated in the short essay on enlightenment referred to above. They claim further that the German thinker developed his motto in an ambiguous manner – on the one hand “Dare to think” does not undermine his encouragement, that citizens carry out their various tasks obediently and pay their taxes to the sovereign. Needless to stress, such an approach amounts to the strengthening of the social and political status quo. But on the other hand, they argue that Kant himself creates the aperture for reading this enlightenment exhortation (p. 17): 

[…] against the grain: ‘dare to know’ really means at the same time also ‘know how to dare’. This simple inversion indicates the audacity and courage required, along with the risks involved, in thinking, speaking, and acting autonomously. This is the minor Kant, the bold, daring Kant, which is often hidden, subterranean, buried in his texts, but from time to time breaks out with a ferocious, volcanic, disruptive power. Here reason is no longer the foundation of duty that supports established social authority but rather a disobedient, rebellious force that breaks through the fixity of the present and discovers the new. Why, after all, should we dare to think and speak for ourselves if these capacities are only to be silenced immediately by a muzzle of obedience? 

One cannot fault Hardt and Negri here; notice, above, that they include ‘acting’ among those things for which one requires the courage to ‘dare.’ As I have previously pointed out in a discussion of critical theory and their interpretation of Kant on the issue of acting, towards the conclusion of his essay, Kant uncovers the radical implications of his argument: if the ruler does not submit himself (or herself) to the very same rational rules that govern the citizens’ actions, there is no obligation on the part of the latter to obey such a monarch any longer. 

In other words, rebellion is justified when authorities themselves do not act reasonably (which includes the tenets of ethical rationality), but, by implication, unjustifiably, if not aggressively, towards citizens. 

There is a lesson in this as far as the ineluctable need for action is concerned when rational argument with would-be oppressors gets one nowhere. This is especially the case when it becomes obvious that these oppressors are not remotely interested in a reasonable exchange of ideas, but summarily resort to the current unreasonable incarnation of technical rationality, namely AI-controlled mass surveillance, with the purpose of subjugating entire populations. 

Such action might take the form of refusing ‘vaccinations’ and rejecting CBDCs, but it is becoming increasingly apparent that one will have to combine critical thinking with action in the face of merciless strategies of subjugation on the part of the unscrupulous globalists.