Tag Archives: Federal Reserve

This Chart Defines the 21st Century Economy

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By Charles Hugh Smith

Source: Of Two Minds

There is nothing inevitable about such vast, fast-rising income-wealth inequality; it is the only possible output of our financial and pay-to-play political system.

One chart defines the 21st century economy and thus its socio-political system: the chart of soaring wealth/income inequality. This chart doesn’t show a modest widening in the gap between the super-wealthy (top 1/10th of 1%) and everyone else: there is a veritable Grand Canyon between the super-wealthy and everyone else, a gap that is recent in origin.

Notice that the majority of all income growth now accrues to the the very apex of the wealth-power pyramid. This is not mere chance, it is the only possible output of our financial system. This is stunning indictment of our socio-political system, for this sort of fast-increasing concentration of income, wealth and power in the hands of the very few at the top can only occur in a financial-political system which is optimized to concentrate income, wealth and power at the top of the apex.

Well-meaning conventional economists have identified a number of structural causes of rising wealth/income inequality, dynamics that I’ve often discussed here over the past decade:

1. Global wage arbitrage resulting from the commodification of labor, a.k.a. globalization

2. A winner-takes-most power law distribution of the gains reaped from new technologies and markets

3. A widening mismatch between the skills of the workforce and the needs of a rapidly changing economy

4. The concentration of capital gains in assets such as high-end real estate, stocks and bonds that are owned almost exclusively by the top 10% of households

5. The long-term stagnation productivity

6. The secular decline in the percentage of the economy that flows to wages and salaries

While each of these is real, the elephant in the room few are willing to mention much less discuss is financialization, the siphoning off of most of the economy’s gains by those few with the power to borrow and leverage vast sums of capital to buy income streams–a dynamic that greatly enriches the rentier class which has unique access to central bank and private-sector bank credit and leverage.

Apologists seek to explain away this soaring concentration of wealth as the inevitable result of some secular trend that we’re powerless to rein in, as if the process that drives this concentration of wealth and power wasn’t political and financial.

There is nothing inevitable about such vast, fast-rising income-wealth inequality; it is the only possible output of our financial and pay-to-play political system.

Policy tweaks such as tax reform are mere public relations ploys. The cancer eating away at our economy and society arises from the Federal Reserve and the structure of our financial system, and the the degradation of our representative democracy into a pay-to-play auction to the highest bidder.

The social and economic roots of the attack on democratic rights

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Inequality and the American oligarchy

By Eric London

Source: WSWS.org

A report published September 27 by the US Federal Reserve, the Survey of Consumer Finances, shows that the top 10 percent of Americans now own 77 percent of all wealth. The top 1 percent increased its share of wealth from 35.5 percent in 2013 to 38.5 in 2016. The share of the bottom 90 percent declined from 25 percent to 22.9 percent over the same period.

These percentages show a transfer of trillions of dollars from the working class to the rich and affluent in just three years.

The bottom three quarters of the population, some 240 million people, now own less than 10 percent of the wealth. That is, if the United States were a 10-storey apartment building with 100 people, the richest person would be living on the top four floors, the nine next wealthiest people on the next four floors, fifteen on the second floor, and 75 people cramped at the bottom level.

Wealth share by wealth decile, Credit: People’s Policy Project

The Federal Reserve data demonstrates, in empirical terms, profound changes in social relations that affect hundreds of millions of people, touching all aspects of political, cultural and intellectual life. The US is an oligarchy in which the government, trade unions, media, universities, and major political parties are instruments used by the ruling class to manipulate the population, mask its own wealth, and crush social opposition from below.

The figures expose the material basis for the emergence of a campaign in the ruling class to block access to the World Socialist Web Site and other left-wing sites in the guise of combatting “Russian aggression.”

In an oligarchy, social inequality is incompatible with democratic rights. Incapable of and unwilling to address the social needs of the masses of people, the government turns to censorship, surveillance, blacklisting, and violence as its preferred methods for defending unprecedented levels of wealth monopolized by the ruling class.

The data shows that the main dividing line is between the top 10 percent and the bottom 90 percent that comprise the working class. The Federal Reserve figures expose as lies the claims by politicians and media pundits that the bulk of the US population belongs to the “middle class.”

Below the aristocracy and the affluent—concentrated in certain neighborhoods of major centers like New York, the San Francisco Bay Area, Los Angeles, Chicago, Houston, and other cities—the United States is a country dominated by tremendous economic hardship. The data shows that while different strata of the population face economic insecurity at different levels of urgency, decades of social counterrevolutionary policies by both parties are bringing them closer together, marking all with the same scars of class exploitation.

The poorest ten percent of the population, some 32 million people, possess negative wealth. They include the homeless and the hopelessly in debt. For this section of the population, roughly equal to the populations of Texas and New York combined, life expectancy, disease rates, and living standards resemble third world conditions.

The next poorest ten percent have no wealth, between $0 and $5,000 per family, less than the value of a 10-year-old used car. The combined wealth possessed by this layer is not significant as a proportion of overall wealth.

Roughly the lower-middle third of the population, from the 20th to 50th percentile, control just 1.6 percent of total wealth. A family of four with two parents working full-time at the minimum wage with one average-priced vehicle and no other assets would fall in the middle of this broad category of workers.

The 64 million people in the 50 to 70 percent range control just 5.1 percent of the wealth. A family with a below average-priced home worth $150,000, plus a vehicle and $0 in savings would be above the 60th percentile in wealth. A family with two working adults making between $40,000 and $50,000 each would find itself in the 70 to 80 percentile, perhaps possessing two cars, a home valued just above the national average of $175,000, a life insurance policy and $10,000 in savings.

The 80 to 90th percentile owns 11.2 percent of the wealth. Two skilled workers with incomes of $60,000 to $80,000 each, one pension, a $300,000 home, and two vehicles would find themselves in this decile. This section is slightly more comfortable, but by no means financially secure.

The chasm separating the top 10 percent from the working class has widened in recent years. From 2004 to 2016, the working class saw its wealth decline precipitously across all strata. The median family in the poorest fifth lost 29.5 percent of its wealth over this period, followed by 24.7 percent for the median family in the 20th-39th percentile, 10.8 percent in the 40th-59th percentile, 17.3 percent in the 60th-79th percentile, and 1.3 percent in the 80th-89th percentile. This wealth went to the top 10 percent, where median family wealth rose by 38.7 percent over the same period.

As a result of this massive transfer of wealth, median family wealth in the top 10 percent is nearly triple that of the 80 to 90 percent, 20 times greater than a family in the 50th percentile, and 254 times more than the median family net worth in the poorest 20 percent.

The political establishment that has overseen this transfer systematically ignores and aggravates the urgent social problems confronting the vast majority of the population.

Footage of Trump flipping paper towel rolls to victims of the storm in Puerto Rico epitomizes the callous and insulting response of the oligarchy to the problems of the working class. But sanctimonious claims by Democrats that Trump’s actions were “insensitive” ignore the fact that the entire ruling class is responsible for the social catastrophe. After all, it was Barack Obama who travelled to Flint, Michigan and told a crowd of people to “drink the water.” Nobody in the Democratic or Republican parties has made any real effort to address the opioid crisis, homelessness, declining life expectancy, storm protection and disaster infrastructure, skyrocketing student debt and the health care crisis.

The three branches of government, largely comprised of millionaires and billionaires, focus exclusively on the interests and social demands of the top 1, and, more broadly, the top 10 percent of society. A key concern of the affluent 10 percent is blocking the growth of social opposition and protecting their own wealth and privileges. In recent years, the American ruling class has become more aware of the growth of social opposition within the population to war, inequality and poverty.

Fearful that the technological advances of the Internet and social media platforms can increase access to alternative political viewpoints, the oligarchy has initiated a campaign to censor left-wing websites and crack down on social media platforms in the name of blocking “Russian interference” in the US political system. Without a shred of credible evidence to back their claims, newspaper editors, TV talking heads, Senate and House committee members, corporate executives, trade union leaders and academics are engaged in a mad rush to censor the Internet and protect the population from “fake news.”

The anti-fake news censorship and blacklisting initiative is an escalation of a years-long campaign by the ruling class to create the framework for police state methods of rule. At the same time, the growth of social inequality revealed in the Federal Reserve figures points to the inexorable intensification of social and class conflict in the United States, the objective foundation for socialist revolution.

Freedom Is Not Necessarily The Absence Of Tyranny

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By Brandon Smith

Source: Alt-Market

Is it true that freedom is an overly idealized concept? Perhaps, but it is one of the few concepts worthy of idealization. It is so worthy, that it is worth dying for.

Since the dawn of recorded history human beings have fought and sacrificed to attain freedom. It is an inherent psychological construct. It is a principle that is rooted not only in the mind of man, but his spirit or soul. Scientists in the realm of the mind have struggled for generations to understand where it comes from — others have sought to dismiss it as a fanciful notion or societal construct. Nihilists claim it doesn’t really exist, while other people center their entire lives on the proliferation of it. The concept of freedom, love it or hate it, is central to all cultures and all civilizations. The most common dismissal of the idea of freedom that I have seen is the argument that none of us is really free because “tyranny exists”. Tyranny is a constant, therefore, in the view of the nihilists, freedom cannot exist. I believe this dim way of thinking stems from a misconception of what freedom is and where it comes from.

Freedom, first and foremost, begins in the mind, or the heart; whatever you are inclined to put more stock in. To think critically or to imagine wildly is indeed to be free. Tyranny, by extension, rises from the mire and muck in the physical world around us and ends in the mind and the heart. If one is free of mind, then one is never truly enslaved.

I have heard so many times the ignorant accusation that freedom requires action before consequence. That is to say, if you have suffered the consequences of a tyrannical system, then you have already failed to prevent your own enslavement. This is not how freedom functions. It has never worked this way.

There is no such thing as a world without the consequences of tyranny. Tyrants are everywhere, always. There are little tyrants in our everyday lives, and big tyrants that pull strings from behind the curtains and from the darker places. There are people reading this article right now that think they are liberty-minded, but act like tyrants towards those around them. There are people who think they are slaves when one simple choice or action could easily make them free. There are people who see private property as tyranny and seek to supplant it….with an even greater tyranny of entitlement and socialism. And, there are people who think freedom means freedom for them, but not for others. Each tyrant takes time to understand and remove from our lives. Some we simply need to walk away from; others need to be destroyed.

The point is, we are forever dealing with tyranny, and many of us are forever working to topple it. As long as we are able to pursue that goal, we are still free. The true slaves are those that have given up completely out of laziness or fear. Tyranny is always present, after all; why take a bath today when you are just going to end up soiled again tomorrow?

The idea that one can do nothing in the face of the machine is an old idea proven wrong time and time again, yet, it is also a very easy and comfortable lie to live in. Struggle is difficult. Sacrifice is foreboding and ugly. There are a million-and-one excuses and rationalizations as to why it is better to “accept fate” or circumstances. There is always another excuse that can be used to paper over cowardice.

Tyrants can, in fact, win and keep winning for the length of an epoch, exactly because of the logical fallacy that they cannot be resisted or be beaten. It is the self-fulfilling prophecy of nihilism that makes tyranny possible. Without it, tyrants inevitably fail and fall.

The great monster of our time that must be slayed is the monster of organized conspiracy. Past generations have confronted and defeated appendages of this monster, but they never beheaded it, and this is why our particular brand of tyranny persists. It is not enough for us to fight the tentacles of the beast anymore — it is the job of the freedom fighters of our era to stab at the brains of the wretched thing.

I am of course speaking of the banking cabal, the cult of financiers and elites that make up the globalist hierarchy. They pervade the halls of numerous institutions and think tanks, from the Federal Reserve and the Council on Foreign Relations to the International Monetary Fund and the Bank for International Settlements. They sit in positions of great political influence and hold council (and some would say considerable sway) over world leaders. They write “theoretical” policies which are quickly adopted by governments and made into law. They are primary stockholders and owners of our mainstream media. Their slithering fingers are wrapped around academia and many scientific communities. They insinuate themselves into every foundation of thought, because thought is what they most wish to control.

They prefer to divide and conquer, to pit one group against another, or to give their ideological enemies enough rope to hang themselves with. If they can’t rule the psyche of a society or succeed in 4th generation warfare, they will fall back to the old standard of brute force. In fact, they might just do that anyway, because what tyrant doesn’t love instilling abject terror every once in a while?

And yet, these “elites” stand on a razor’s edge. Despite all their supposed power, despite all their wealth, despite the vast spiderwebs they weave, all of it can be turned to ash in an instant and they know it. Empires like this rely on anonymity, and they are anonymous no longer. The cabal is out in the open; they have to be.

To shift the world into true globalism and true centralization requires actions which can be masked from some people but not all people. They believe the intricate digital networks they have funded will buy them total information awareness, but these same networks also provide us with the tools to understand who they are and what they want. This double-edged sword of full spectrum data creates a Catch-22 timeline. The longer the globalists wait to implement the one world system they desire, the more time we have to educate millions of people. The faster they implement their one-world system, the more likely they are to make a mistake.

Time is running out. Time is working against them. Time is the master here, and the globalists are nothing but paper boats on a tidal wave.

This organized conspiracy increases its odds of success through psychological manipulation. There will come a time, perhaps sooner rather than later, when banking elites and their political allies can no longer stand outside the game unscathed. Risk is coming. So, they must encourage as much self-defeat in the minds of freedom champions as possible.

They will conjure crisis and catastrophe, they will conjure puppet enemy after puppet enemy, they will exploit useful idiots with collectivist views as cannon fodder, they will engineer conflicts between East and West. They will try to grind us down and break the legs of our resolve.

However, as long as there are people who know who the globalists are that are willing to hunt them down, the globalists cannot win. For what they desperately want is to stand out in the sun with criminal impunity, and without fear. They want to be untouchable. They want to be gods.

Real gods do not suffer consequences, and these people will suffer consequences.

The nihilists will cry, “When?! How?! Never!” But this is the nature of freedom. Freedom is in the fighting; winning is transitory. Tyranny can be subtle and it can be blunt, freedom is the same way. If you think because there is no shooting going on yet that a war is not happening, then you do not understand the nature of warfare.

Yes, it is possible that the fall of one globalist cabal might give rise to another, and another. But we are free to be there and to fight again. As long as we fight, we prevail. When we abandon the fight completely, that is when true slavery begins. Today, we fight using information versus propaganda, and we must be adept at this. We also must be adept at other forms of combat as the conflict escalates.

There will never be total absence of tyranny. The naysayers against the principle of freedom are delusional, or maybe they know such a standard is unattainable and this will make them forever “right.” When will the fight begin? It already has. It has been going on since time immemorial and we are merely here to continue it. This might seem like a task for Sisyphus – an endless circular nightmare. I look at it another way: We are a changing of the guard. We have inherited a responsibility beyond all responsibilities. In this age, we are the freedom fighters, and if we fail now then we pass an even more difficult horror on to some other generation down the line.

In my view this is unacceptable. The opportunity to end one longstanding tyranny is now. We must counter using information as long as is needed, and we must wake up as many people as possible, so when the time comes to storm the castle, the shared sacrifice is that much easier to bear. If you have taken up this fight in one form or another never let anyone tell you you are not free. Your ability to think and to act is concrete proof otherwise.

When the Butterfly Flaps Its Wings

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credit: Twitter/@caroleenarn

By James Howard Kunstler

Source: Kunstler.com

It remains to be seen what the impact will be from Mother Nature putting the nation’s fourth largest city out-of-business. And for how long? It’s possible that Houston will never entirely recover from Hurricane Harvey. The event may exceed the physical damage that Hurricane Katrina did to New Orleans. It may bankrupt large insurance companies and dramatically raise the risk of doing business anywhere along the Gulf and Atlantic coasts of the USA — or at least erase the perceived guarantee that losses are recoverable. It may even turn out to be the black swan that reveals the hyper-fragility of a US-driven financial system.

Houston also happens to be the center of the US oil industry. Offices can be moved elsewhere, of course, but not so easily the nine major oil refineries that sprawl between Buffalo Bayou over to Beaumont, Port Arthur, and then Lake Charles, Louisiana. Harvey is inching back out to the Gulf where it will inhale more energy over the warm ocean waters and then return inland in the direction of those refineries.

The economic damage could be epic. Much of the supply for the Colonial Pipeline system emanates from the region around Houston, running through Atlanta and clear up to Philadelphia and New York. There could be lines at the gas stations along the eastern seaboard in early September.

The event is converging with the US government running out of money this fall without new authority to borrow more by congress voting to raise the US debt ceiling. Perhaps the emergency of Hurricane Harvey and its costly aftermath will bludgeon congress into quickly raising the debt ceiling. If that doesn’t happen, and the debt ceiling is not raised, the federal government might have to pretend that it can pay for emergency assistance to Texas and Louisiana. That pretense can only go so far before government contractors balk and maybe even walk.

Ordinarily, failure to raise the debt ceiling would lead to a government shut-down, including hurricane recovery operations, unless the president invoked some kind of emergency powers. That would be decisive action, but it could also be the beginning of something that looks like a full-out dictatorship. Powers assumed are often not surrendered when the original emergency is over. And what would the president use for money if a substantial enough number of congresspersons and senators are prompted by their distaste for Mr. Trump to drag out the process of financially re-liquefying the government? (And nevermind even passing a budget.)

Meanwhile, two other major sources of aggravation are waiting off-stage: one is North Korea. Why wouldn’t Kim Jong-un use the opportunity of political disarray in the US to create more headaches for a distracted US government? Never let a crisis go to waste. Another potential irritant is the return of students to American college campuses. Imagine how the campus Antifa forces would react to Mr. Trump assuming emergency powers. It’s easy to foresee an acceleration of violence between the extreme Left and the Extreme right during what is shaping up to look like a major crisis in governing. If the campus Left had any tactical brains, they’d stop marching around in black uniforms and instead organize a mass renunciation of college loan debt.

Behind all this political strife will be wobbling financial markets. The message from the debt ceiling stalemate to the bond market would be that the US can no longer be relied on to pay its debts. Interest rates on US Treasury paper would have to go up as the long-lost concept of risk returned to the bond scene. People and institutions will not be induced to hold bonds unless the yield is recalibrated to the actual risk. Of course, in the mysterious world of bonds (i.e. securitized debt), the price of bonds goes down as interest rates rise. Meaning a lot of current holders of bonds would be hammered if they tried to sell. Rates rising would also spell big trouble for corporations and governments who have to make regular interest payments to bond-holders. A rate rise to as little as 3 percent on US Treasury bonds could spin the country into comprehensive bankruptcy.

How might stock markets and currency markets react to the scenario above? To me it would look like a drop of at least 1000 points on the S & P. The US dollar might actually rise initially as a whole lot of debt is renounced — which makes money actually disappear — but then you have the Federal Reserve waiting on another flank to roll out their own emergency response: Quantitative Easing No. 4, flooding the system with new “money” that has all the appearance and none of the mojo of value, tanking the dollar anew. As a wise correspondent of mine wrote a while back: “financialization is nothing more than money with its value removed.” (Graham Reinders.)

A lot can happen when a faraway butterfly flaps its wings and sets a slight current of air in motion.

Deep State, shallow politics, dumb economics

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By Frank Scott

Source: Intrepid Report

In 1965, the USA had 780,000 people in prison, jail, on parole or on probation.

By 2010, that population had grown by more than nine times, to 7 million and the prison business was booming as never before, creating profits, jobs and unparalleled human misery.

In 1954, the integration of public schools was seen as a great victory for civil rights and Americans now designated as “people of color”*. Today more than 50% of the prison population is designated as “people of color” and the disintegration of the entire public school system continues for all Americans designated as people.

In 2015, there were 536 billionaires in the U.S.A. In a nation of more than 325 million people, that represents less than 2 millionths of one percent of the population. For the textually challenged, that looks like this:.000002%

Wow.

How hard those truly brilliant people must have worked to achieve those riches. And one of them was Donald Trump!

Imagine how many cases they had to plead in court, classes to teach in school, buses to drive, meals to prepare, floors to wash, crops to pick, mail to deliver and deals to make? Well, actually, they mostly made deals using their great wisdom and brilliance at investing wisely. You and I could do as well if we worked as hard and were as smart and industrious as they are, including Donald Trump!

And if we were paid a thousand dollars an hour for our hard work, and we worked twenty four hours a day, seven days a week, fifty two weeks a year, maybe if we stashed all that cash and didn’t spend any of it we might have a billion dollars.

Nope.

In fact, if you worked twenty four hours a day, seven days a week, fifty two weeks a year and did that for ten years, at one thousand dollars an hour, never stopped, never took any time off and never spent any of the money and just stashed it, you still wouldn’t have a billion dollars.

Is this a great democracy or what?

In that same year of 2015, America’s GDP for pets, which was $38.5 billion in 2006, had grown to $60.3 billion. Twelve companies insured 1.4 million pets owned by 79.6 million American families (65% of households) with premiums amounting to 660.5 million dollars.

163.8 million dogs and cats are comfortably housed in a political economy that has half a million of its people homeless and more than 20% of its children living in poverty. This is certainly reason enough for us to demand that Russia, North Korea, Syria and other nations adopt our democratically civilized way of living or suffer the consequences of our superior wrath. Right?

As of March1, 2017, our national debt was close to $20 trillion, which is more than our GDP, which is truly a gross domestic product. We the people of this great democracy pay more than $440 billion a year in interest on that debt.

Who do we pay it to?

Where’d they get the money to loan us?

Who prints and backs this money supply?

If you have any money among your plastic, look at one of the bills of any denomination and note that the power behind the cash is not the dead presidents or Rockefeller, Carnegie, Zuckerburg, Soros, Bezos, Visa or MasterCard but something called “The United States of America.”

That is not a private bank or a billionaire. That’s you. That’s us.

Remember, we, the public, print the money, in our name, and somehow it gets to a private source which loans it to us and charges us interest for the privilege. Would you like to buy a bridge?

Our personal debt, incurred to keep the economy going with our consuming and owed to the same market gods, was over $18 trillion. Almost as high as our public debt. Somehow, we owe it to the same people who loaned us our own money for public expenses. Wow.

Are they really smart?

Or are we really stupid?

Many Americans are treated as lower than scum for being working class and “uneducated.” Why are so many Americans so “uneducated”? Could it have anything to do with the fact that at some point they went through grammar and high schools taught by (drum roll) college-educated people**? And winding up with presidents like a truly brilliant rich guy with degrees from Yale and Harvard (wow!) who starts wars in the Middle East that have gone on longer than any in our history, with the consent of 534 out of 535 democratically (?) elected college graduates in congress?

Whether the organized crime lobby (Wall Street, banks, billionaires) supports guns for individuals, Israelis or the Military Industrial Complex, it remains in control of the political economics of American government. NRAIPAC and its ilk own, rent and control the White House, Congress and Corporate media. That was the case before Trump and still is the case now.

We need resistance to that system of minority control itself, and not simply the servants it hires, leases, rents or outright owns. As long as we allow a gallon of milk to cost more than a gallon of gasoline, as long as we tolerate an economics that will sustain a disease as long as profits for its treatment are greater than profits for its cure***, we not only face long range climate disaster but a much shorter range political economic calamity.

Global capitalism threatens immediate and growing poverty, war, human misery and planetary destruction no matter which political pinhead, pimp or ho lives in the subsidized residency we call the white house. As long as we allow the richest and smallest minority in our history to put only their servants up for our votes, calling this a democracy reduces us to the best-dressed peasants on the Titanic. We need to end the fundamentalist religion of private profit marketing that is becoming a greater menace by the minute and begin democratic action in a social revolution that expresses majority public interest, desire and need. Fast.

 

Notes

*All members of the human race are “of color” save for a small group called albinos. Some of us have darker or lighter skin but skin tone is of no more racial significance than brown hair, green eyes or long legs. Innocents, the ignorant and morons who still believe otherwise are science deniers at best, and anti-human at worst, no matter their skin tone.

**Those with a stake in maintaining their incomes & consumption are unlikely to participate in efforts to bring about radical change”—Michael D. Yates

***Check cancer, for starters; a multi-multi billion-dollar industry

A Monster Eating the Nation

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By James Howard Kunstler

Source: Kunstler.com

Is there any question now that the Deep State is preparing to expel President Donald Trump from the body politic like a necrotic organ? The Golden Golem of Greatness has floundered pretty badly on the job, it’s true, but his mighty adversaries in the highly politicized federal agencies want him to fail spectacularly, and fast, they have a lot of help from the NY Times / WashPo / CNN axis of hysteria, as well as such slippery swamp creatures as Lindsey Graham.

There are more problematic layers in this matter than in a Moldavian wedding cake. America has been functionally ungovernable for quite a while, well before Trump arrived on the scene. His predecessor managed to misdirect the nation’s attention from the cumulative dysfunction with sheer charm and supernatural placidity — NoDrama Obama. But there were a few important things he could have accomplished as chief exec, such as directing his attorney general to prosecute Wall Street crime (or fire the attorney general and replace him with someone willing to do the job). He could have broken up the giant TBTF banks. He could have aggressively sponsored legislation to overcome the Citizens United SOTUS decision (unlimited corporate money in politics) by redefining corporate “citizenship.” Stuff like that. But he let it slide, and the nation slid with him down a greasy chute of political collapse.

Which we find embodied in Trump, a sort of tragicomic figure who manages to compound all of his weaknesses of character with a childish impulsiveness that scares folks. It is debatable whether he has simply been rendered incompetent by the afflictions heaped on by his adversaries, or if he is just plain incompetent in, say, the 25th Amendment way. I think we’ll find out soon enough, because impeachment is a very long and arduous path out of this dark place.

The most curious feature of the current crisis, of course, is the idiotic Russia story that has been the fulcrum for levering Trump out of the White House. This was especially funny the past week with the episode involving Russian Foreign Minister Lavrov and Ambassador Kislyak conferring with Trump in the White House about aviation security around the Middle East. The media and the Lindsey Graham wing of the Deep State acted as if Trump had entertained Focalor and Vepar, the Dukes of Hell, in the oval office.

Why do you suppose nations employ foreign ministers and ambassadors, if not to conduct conversations at the highest level with other national leaders? And might these conversations include matters of great sensitivity, that is, classified information? If you doubt that then you have no understanding of geopolitics or history.

The General Mike Flynn story is especially a crack-up. Did he accept a twenty thousand dollar speaking fee from the Russian news outlet RT in his interlude as a private citizen? How does that compare to the millions sucked in by the Clinton Foundation in pay-to-play deal when Madame was secretary of state? Or her six-figure speeches to Goldman Sachs and their ilk. Are private citizens forbidden to accept speaking fees or consulting fees from countries that we are not at war with? I’d like to know how many other alumni of the Bill Clinton, Bush-II and Obama admins have hired themselves out on this basis. Scores and scores, I would bet.

Trump’s adversaries might not get any traction on the Russia story, but they may enrage the rogue elephant Trump enough in the process that he will appear sufficiently incompetent to run him over with the 25th Amendment, and I think that is the plan for now. Of course, there are some jokers in the deck. A really striking one is the story of murdered DNC staffer Seth Rich last July. He was shot in the back on the street outside his apartment one night by persons as yet unknown, and twelve days later over 40,000 DNC emails landed at Wikileaks. His laptop is reportedly in the possession of the DC cops — if it hasn’t been dumped in the Potomac. I’m generally allergic to conspiracy theories, but this looks like an especially ugly story, which might ultimately be clarified if-or-when Julian Assange of Wikileaks ever divulges the source of that data dump. Anyway, the new Special Counsel at the DOJ, former FBI Director Robert Mueller, may have to venture down that dark trail.

One way or another, though, the Deep State is determined to drive Trump from office. In the final rounds of this struggle, Trump might conceivably undertake a sudden swamp-draining operation: the firing of a great many politicized Intelligence Community officers, especially the ones legally culpable for leaking classified information to media — another area that Mr. Mueller could also shine a light on. The colossal security apparatus of this country — especially the fairly new giant NSA — has become a monster eating America. Somebody needs to literally cut it down to size. Perhaps that’s the Deep State’s main motive in moving heaven and earth to dump Trump.

When they do, of course, they are libel to foment an insurrection every bit as ugly as the dust-up that followed the shelling of Fort Sumter. Trump, whatever you think of him — and I’ve never been a fan, to put it mildly — was elected for a reason: the ongoing economic collapse of the nation, and the suffering of a public without incomes or purposeful employment. That part of the common weal is liable to completely whirl down the drain later this year in something like a currency crisis or a depressionary market meltdown engineered by yet another Deep State player, the Federal Reserve. That and the ejection of Trump could coincide with disastrous results.

How to get rid the bastards before they murder us all

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march_of_tyranny

By Jack Balkwill

Source: Intrepid Report

If most Americans knew what was happening in our extremely corrupt government, there would be a bloody riot, and most of the Democrats and Republicans would be slaughtered with as little mercy as they’ve shown the American public.

Through their actions, Democrats and Republicans have caused the deaths of millions from unsafe products, unsafe workplaces, lack of minimal health care, unnecessary wars, and other malfeasance resulting from their serving the vile capitalists who finance their elections.

True, a fourth of the electorate vote Democrat, and another fourth Republican, because they see no other hope. Delusions of “lesser evils” lead them to line up, lambs to the slaughter, hoping that the stinking pile of dung for whom they vote will enable less horror than the other stinking pile of dung.

Half of the electorate routinely do not vote, understanding that, in our system, decent candidates are not allowed air time by the corporate-viewpoint media, nor allowed the mountains of cash given to the Democrats and Republicans with which to purchase additional media exposure for deceitful campaign ads.

If a candidate of the people did find a way to be recognized, he or she would not be allowed into the controlled debates. Ballot access is another way the establishment blocks democracy from breaking out in the Land of the Free. The ruling plutocratic oligarchs have pretty much covered all the bases to snuff out any hope for an iota of democracy.

In many of our elections, far more than half of eligible voters do not cast ballots. Propaganda control by mainstream media tell us this is because those who do not cast votes are satisfied, when anybody with an IQ higher than their shoe size knows it’s a lie. “Let’s see now,” these potential voters ponder, should I vote for the guy who’ll stick a knife in my left hand, or the one who will put an ice pick through my right foot?

I’ve watched for decade after decade as young people voted for “lesser evil” scum, saying they will do better next time. Next time they do the same thing. The system is evil itself, if anything is evil, encouraging the hopeless to vote for scumbags with the hope to stop other scumbags from winning.

It is a part of American capitalism, where everything of importance is controlled and nobody is supposed to notice that it only works for the capitalists—those few who control most of the capital. American capitalism is so badly broken that it requires the world’s largest prison system to make it barely chug along. It requires thousands dying for a lack of health care each year, higher numbers than in any industrialized nation. It requires the highest homelessness and hunger among major industrialized nations.

And the corporate media, fawning lap dogs that they are, never notice any of it. If a corporate-paid journalist did, they would soon find themselves to be among the unemployed. Capitalism loves unemployment because it draws down wages, allowing the capitalists to increase their profits, the only thing that works in capitalism. That is why our submissive government lies about unemployment figures constantly, always giving the numbers as half or less than half of the true misery index.

When people begin to minimally get jobs, the Federal Reserve raises interest rates to increase unemployment and maintain the wealth disparity. As the poor are wiped out by the millions, no billionaire is allowed to lose a penny in the rigged system.

The problem in doing something about it is that the doors have just about all been shut by corrupt laws. There are groups of voters who have more right to be upset than others, but they are locked out of the system to prevent an outbreak of democracy.

For example, in most states convicted felons are not allowed to vote, even though they have officially “paid for their crime.” These people are ripe for voting for a people’s party, and the establishment knows it, so bars them. Unemployed, they may have sold some pot to feed their kids, the only real shot there is for many at the bottom of an economy in which more illegal drugs are sold than in any other nation.

And I’ve tried for decades to change the law in Virginia so that homeless people can vote. Long ago I was feeding homeless people on the street, spooning out grits in freezing cold, watching people with ice around their faces crawl out from doorways where they slept and thinking, “What if I could bring registration forms, get them to sign up and encourage them to vote for the Greens?”

I even found a legislator, a Black woman named Mary Christian, to sponsor me to speak before the Constitution Committee of the House of Delegates, the oldest legislature in North America, and ask that they allow homeless people to vote. To make a long story short, I failed in that attempt.

Didn’t know that homeless people can’t vote? Check your state and you will probably find it’s near impossible there as well. In Virginia, if you are caught with a false address on your registration, you are subject to a year in jail and a $10,000 fine. If you are homeless, and you register as living in the building whose doorway you slept in last night, chances are you won’t be there the next night after a cop tells you to move along.

The establishment knows who could be trouble, and has already enacted laws to make democratic participation hell for millions of Americans.

Most Americans live in ignorance of almost anything of importance to them, knowing only the myths given to them by the corporate media. That is what makes it so difficult to organize them—their heads are filled with propaganda. “But if I don’t vote for Hitler, Satan will get in. . . .”

So, in my entire life of trying to find ways to disrupt the system and make it work for the people, I always come back to the one thing that holds promise, and that is to find a way to get information to the masses around the corporate-viewpoint media. It is that mainstream media which keeps the masses ignorant and in thrall.

I hate to agree with Donald Trump, but he’s right that the mainstream media is the enemy of the people. They have been all my 72 years, but it is getting worse.

Once there were big dreamers in our government who came up with National Public Radio and the Public Broadcasting System, which were a great idea. The idea was to allow opinions around the corporate media, so that the public could get a second opinion.

But good ideas soon hit a meat grinder in our system. The scum who run the country had their bought-and-paid-for politicians cut funding, forcing NPR and PBS to take more and more corporate money, until they became a clone of ABC, NBC, CBS, CNN, FOX, etc.

If we had one TV channel of our own, we could destroy the entire house of cards. Years ago I wrote about it and it appears we need a Social Justice Network more than ever today. The thing the establishment fears most is information and democracy, and a Social Justice Network could bring us both, by opening the eyes of the public to the scam that keeps a boot on their backs. Ignorant people are controlled people.

 

Jack Balkwill has been published from the little read Rectangle, magazine of the English Honor Society, to the (then) millions of readers USA Today and many progressive publications/web sites such as Z Magazine, In These Times, Counterpunch, This Can’t Be Happening, Intrepid Report, and Dissident Voice. He is author of “An Attack on the National Security State,” about peace activists in prison.

Either Reverse All the Perverse Incentives or the System Will Implode

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By Charles Hugh Smith

Source: Of Two Minds

Every perverse incentive is the cash cow for a vested interest or cartel.

I hope it’s not a great shock to discover all the incentives in our status quo are perverse: those who rig the financial system while creating zero real value, jobs, goods or services reap all the big profits; those who take near-zero responsibility for their own health are subsidized by those who take responsibility for their own health; those who try to start enterprises and hire workers are saddled with endless regulations, junk fees and taxes while those who game the system to get welfare (household or corporate) skim the cream for doing nothing for their community or for the nation.

Systems in which all the incentives are perverse implode under their own weight. Those who struggle to pay the mounting costs of Imperial Over-Reach, crony-capitalism and all the skimmers and scammers eventually go bankrupt or quit in disgust, while the army of state dependents and cronies explodes higher.

It has taken decades for the incentives to become so perverse, so we no longer notice the perversity or the pathological consequences.

High-frequency traders and financiers with the ready ear of well-paid political lackeys, stooges, toadies and sycophants run never-lose skimming operations and pay lower tax rates than self-employed and small business owners.

Corporations have increased their share prices not by earning more money by producing more goods and services but by borrowing cheap money from the Federal Reserve and buying back outstanding shares.

Corporations pay less tax if they move production overseas and keep their profits in other countries.

If I wreck one vehicle after another due to reckless irresponsibility, what happens to my insurance premiums? They skyrocket, of course, reflecting the higher risks that result from my behavior and poor choices. Nobody thinks safe drivers should subsidize irresponsible drivers.

But if I wreck my health by recklessly pursuing risky behaviors, I pay the same as people who are careful “drivers” of their health. What sort of incentives does this system generate?

If I want to buy an over-priced home, the system is loaded with incentives to encourage that potentially poor financial decision. But if I want to launch a small enterprise, the incentives are all perverse: steep upfront fees, taxes from the first dollar, and in many cases, fees and taxes on revenues, regardless of whether I am making a profit or losing my shirt.

Corporate profits have soared as financialization and rigging the system have paid much higher returns than risking capital in new goods and services.

corp-profits3-16d

The incentives for home ownership have turned the bottom 90% into debt-serfs in servitude to banks while the top 5% own income-producing assets and businesses.

ownership-assets2-16

Larded with the most perverse incentives possible, the U.S. healthcare system in the final stages of maximum costs, just before it implodes:

US-healthcare4

It’s not hard to design positive incentives. For example:

1. Make preventative care essentially free to everyone ($5 co-pay) but weight the risks and costs created by irresponsible behaviors that ruin health. Reward those who take responsibility for their health by reducing the premiums they pay.

2. Tax all profits on securities held less than a day at 95%. Raise corporate taxes generated by financial activities to 50%, and lower the corporate tax rate on profits earned from producing domestic goods and services to zero.

3. Lower the tax for the first $25,000 earned by small enterprises to zero. Limit total government fees to 5% of revenues for all businesses up to $10 million in annual revenues.

4. Phase out the mortgage interest deduction. Limit mortgage interest deductions to the first $100,000 of mortgage debt.

5. Eliminate the personal income tax (and the need to file a return) for every household with income of $100,000 or less.

6. Automatically sunset every government regulation. Make city, county, state and federal governments renew every regulation every few years via a majority vote or it vanishes from the law books.

7. Make every politician wear a NASCAR-style jacket plastered with the names and logos of their corporate, union and financier contributors. The California Initiative to make this a reality is seeking signatures of registered California voters. Since politicians are owned, let’s make the ownership transparent.

8. Treat drug abuse and addiction as medical conditions rather than crimes.

9. Eliminate the Federal Reserve and its free-money for financiers perverse incentives for debt-serfdom and financial plundering.

10. Eliminate all student loans and debts. Make colleges compete for students on a cash-only basis.

As you no doubt noticed, every perverse incentive is the cash cow for a vested interest or cartel. That’s why the perverse incentives will endure until the system implodes under their pathological weight.