Why We’re Doomed: Our Economy’s Toxic Inequality

By Charles Hugh Smith

Source: Of Two Minds

Anyone who thinks our toxic financial system is stable is delusional.

Why are we doomed? Those consuming over-amped “news” feeds may be tempted to answer the culture wars, nuclear war with North Korea or the Trump Presidency.

The one guaranteed source of doom is our broken financial system, which is visible in this chart of income inequality from the New York Times: Our Broken Economy, in One Simple Chart.

While the essay’s title is our broken economy, the source of this toxic concentration of income, wealth and power in the top 1/10th of 1% is more specifically our broken financial system.

What few observers understand is rapidly accelerating inequality is the only possible output of a fully financialized economy. Various do-gooders on the left and right propose schemes to cap this extraordinary rise in the concentration of income, wealth and power, for example, increasing taxes on the super-rich and lowering taxes on the working poor and middle class, but these are band-aids applied to a metastasizing tumor: financialization, which commoditizes labor, goods, services and financial instruments and funnels the income and wealth to the very apex of the wealth-power pyramid.

Take a moment to ponder what this chart is telling us about our financial system and economy. 35+ years ago, lower income households enjoyed the highest rates of income growth; the higher the income, the lower the rate of income growth.

This trend hasn’t just reversed; virtually all the income gains are now concentrated in the top 1/100th of 1%, which has pulled away from the top 1%, the top 5% and the top 10%, as well as from the bottom 90%.

The fundamental driver of this profoundly destabilizing dynamic is the disconnect of finance from the real-world economy.

The roots of this disconnect are debt: when we borrow from future earnings and energy production to fund consumption today, we are using finance to ramp up our consumption of real-world goods and services.

In small doses, this use of finance to increase consumption of real-world goods and services is beneficial: economies with access to credit can rapidly boost expansion in ways that economies with little credit cannot.

But the process of financialization is not benign. Financialization turns everything into a commodity that can be traded and leveraged as a financial entity that is no longer firmly connected to the real world.

The process of financialization requires expertise in the financial game, and it places a premium on immense flows of capital and opaque processes: for example, the bundling of debt such as mortgages or student loans into instruments that can be sold and traded.

These instruments can then become the foundation of an entirely new layer of instruments that can be sold and traded. This pyramiding of debt-based “assets” spreads risk throughout the economy while aggregating the gains into the hands of the very few with access to the capital and expertise needed to pass the risk and assets off onto others while keeping the gains.

Profit flows to what’s scarce, and in a financialized economy, goods and services have become commodities, i.e. they are rarely scarce, because somewhere in the global economy new supplies can be brought online.

What’s scarce in a financialized economy is specialized knowledge of financial games such as tax avoidance, arbitrage, packaging collateralized debt obligations and so on.

Though the billionaires who have actually launched real-world businesses get the media attention–Bill Gates, Jeff Bezos, Steve Jobs, et al.–relatively few of the top 1/10th of 1% actually created a real-world business; most are owners of capital with annual incomes of $10 million to $100 million that are finance-generated.

This is only possible in a financialized economy in which finance has become increasingly detached from the real-world economy.

Those with the capital and skills to reap billions in profits from servicing and packaging student loan debt have no interest in whether the education being purchased with the loans has any utility to the indebted students, as their profits flow not from the real world but from the debt itself.

This is how we’ve ended up with an economy characterized by profound dysfunction in the real world of higher education, healthcare, etc., and immense fortunes being earned by a few at the top of the pyramid from the financialized games that have little to no connection to the real-world economy.

Anyone who thinks our toxic financial system is stable is delusional. If history is any guide (and recall that Human Nature hasn’t changed in the 5,000 uears of recorded history), this sort of accelerating income/wealth/ power inequality is profoundly destabilizing–economically, politically and socially.

All the domestic headline crises–culture wars, opioid epidemic, etc.–are not causes of discord: they are symptoms of the inevitable consequences of a toxic financial system that has broken our economy, our system of governance and our society.

Cause of USA Meltdown and Collapse of Civil Rights

By Denis Rancourt

Source: Dissident Voice

SUMMARY: Societies of social animals, including humans, are dominance hierarchies. Civil rights are codified in law to protect mechanisms of essential counter measures against excessive exploitation of the hierarchy by elite classes, which destabilizes the entire society. Systemic pathology arises when elite classes can change the regulatory codes themselves, including civil rights protections, with impunity. Laws that quash civil rights are pathological in that they impede the system-repair mechanisms that are: free expression, free association, class opposition, and negotiated structural adjustments (otherwise known as democracy). Present anti-speech laws are extreme examples of pathological laws, the application of which is a measure of the degree of totalitarianism in the society. The history of the USA of recent decades is an eminent illustration of the concepts.

*****

The USA meltdown has been decades in the making and is the collateral result of an elite predation that has degraded structural elements needed for a healthy and resilient nation.

The aftermath is “too much regulation at the bottom, not enough at the top”: a pathological legislative and institutional structure in which elite interests have too much freedom to challenge and exploit democratic nation states, whereas middle, working and professional class actors, including small and medium-size private business, are economically, ideologically and politically constrained and suppressed to an excessive degree.

It has been a class war in which the predatory classes have barricaded themselves while inflicting humiliating defeat and loss of power, purpose and identity on the lower-stratum classes, which are incited to fight among themselves within the confines of new rules and the guarded illusion that these rules are an actuation of natural order.

In this way, personal and community motivation and inventiveness are sapped. The very motor of a vibrant modern society is jammed and the entire system becomes a system of debt-ransom extraction and management of globalized exploitation for the benefit of a secluded elite.

In this emergent system of excessive class exploitation, civil rights that protect critics and organizers become a threat against the exploiters rather than needed protections of personal and community emancipation that sustains economic production and innovation.

Allow me to explain, starting from fundamental considerations.

Arguably, the most fundamental statement that a social scientist can make is that humans interact by both violent and non-violent means, both individually and as groups, to establish and maintain societal dominance hierarchies. Call it by any name (tribalism, capitalism, socialism, totalitarianism…) humans always establish, maintain and grow dominance hierarchies, using whatever technology of the day.

The political end-point concept of “anarchy” is the theoretical absence of dominance hierarchy, which has never been ideally achieved and which is evidently unstable against growth of and replacement by dominance hierarchy. The reality of social animals is dominance hierarchy, which spontaneously adapts itself to environmental conditions and to the population size, while integrating accumulated knowledge and technological advances.

Within a dominance hierarchy (within a society), the essential counter against destabilizing excesses of dominance is push-back from individuals and groups — engendered by the individual desire for life, freedom and local influence — which acts in every stratum of the hierarchy.

In historically recent human societies, essential push-back is formalized with written laws that protect the individual against dominance encroachments that would be so severe that they would threaten hierarchical stability by increasing the potential for rebellion. These laws were at times deemed to be God-given and are now referred to as “civil rights”. They include both: (1) protections of the individual and of the nuclear and extended family against arbitrary attacks by the state or by rogue elements, and (2) protections for the individual and groups to seek redress and express grievances.

All laws are evolving codes to organise, stabilize and enforce an ever changing (often growing and complexifying) dominance hierarchy. “Good” laws find a “balance” between the graded benefits of hierarchy and the stratified oppressions against individuals and groups, a balance which stabilizes the whole system against deterioration (“injustice”), complete overhaul (“revolution”), or extinction (“downfall”).

Predictably, the codes themselves are often “hacked” by upper-strata groups that are overly ambitious in seeking additional relative advantages. The hacking upper-strata groups will recklessly change the laws for their own advantage in ways that materially threaten overall stability. This produces “pathological” laws that destabilize the overall hierarchy by driving society towards an intolerable degree of totalitarianism.

A now recognized on-going example is the decades-long elite attack, by taxation and global-finance reforms, against the USA middle class, which has prematurely destabilized the USA-centered global empire and its domestic internal society. The blowback from and defences against the USA’s practice of aggressive global dominance has also contributed, where the latter practice is similarly enabled by hacked foreign-policy and global governance laws.

When law-makers themselves can be bought by selfish elites self-segregated from the broad or domestic society, it is a recipe for disaster. In the USA and Canada law-enactment errors are multiplying, and there are no substantial Senatorial safeguards. Law-makers are formed or trained into compliance by career-enabling elites, rather than informed, principled and concerned about public service. Political parties are systematically controlled and constrained by the highest hierarchical echelons, which control the economy and the media.

When the backbone structure of the dominance hierarchy is thus degraded, as with the present crisis of the middle class, there is an impulse for both societal groups and lawmakers to become frantic and for the barricaded elite to exploit and ride out the storm rather than participate in repair. Every new manifestation of rebellion is interpreted as a fire to be extinguished rather than as necessary pushback needing to be allowed to play out. Decades of built-up fuel in the underbrush and extended drought are conditions for a devastating inferno but our “representatives” are successfully goaded into superficially addressing every new spark and violently suppressing every outbreak rather than dealing with the fundamentals.

Over decades, a complete restructuring of the relation between the state and the economy has been engineered, which, in its oppressive excesses, has led to the present crisis. The assault was accompanied by massive propaganda campaigns regarding the security benefits of government control and the welfare benefits of corporate rule. For example, predatory corporate take-over “investment” in public-service infrastructure is now presented as a good thing that should be actively sought using public funds.

The restructuring included: rolling back taxation of the wealthy while maintaining taxation of the middle and working classes, reducing or eliminating corporate taxation, increasing capital mobility, allowing investment flight, allowing infiltration of government-oversight and regulatory agencies (especially in the finance sector), gutting corporate regulatory agencies while transferring to self-regulatory models, unprecedented ideological control of professional workers in the public service (teachers, police, scientists, public servants, judges…), unrestrained lobby and think-tank influence, and unprecedented limitations (regulatory burdens) imposed on small and medium-size private businesses.

Top-level elite desires and machinations have become embedded into the very institutional structure of the economy and of the “deep state” more than ever previously. This is the result of decadal erosion of democracy and continuous increase of integration of government itself into the hierarchical power structure. The global-scale project is enabled by owned military, surveillance, communication, transportation and resource-extraction technologies; and surveillance and projection-of-power capabilities are unprecedented in history.

The resulting decadal overhaul of Western nations — in the march towards USA-centered globalism and the neutralization of Western middle and professional classes — has built-in deleterious structural features, as follows.

Mega corporations and financiers and their deep-state partners have not only militarily and covertly occupied the exploitable globe, they have also installed predation against the Western middle classes and Western public infrastructures. They have gutted mass education and maintained only elite schools for their managers and engineers. And they have gutted the Western middle and professional class mind and ethos and replaced these with canned concepts devoid of emancipating political thrust. More importantly, the educational and societal-maintenance institutions themselves have been transformed by removing professional independence and responsibility and replacing them with ideological obedience and observance of dictated think-tank-produced mantras.

The consequential suicidal pathology of the system’s operational code is twofold.

First, the new freedom and power of the USA-centered mega entities are used to eviscerate the very nation state whose structure evolved to optimally stabilize the nation-based dominance hierarchy. Even the world structures of international relations are hijacked and eviscerated to a higher degree.

Second, the middle and professional classes palpably lose many of the benefits accrued from accepting hierarchical domination, including loss of influence, and consequently suffer a crisis of identity, meaning and outlook… driven by real economic threat (loss or degradation of job and home).

Macro-economic data reveal the decadal transformation since 1980 but do not explain its source or describe its cultural, psychological and class impact. The data are generally cast as the result of an accident that can be fixed by more of the same from one of the two front parties.1

In the real circumstances of the worsening middle-class crisis, it is natural that grievances are aired and solutions are sought to recover lost status. But at the same time, advocacy and the potential for an organized response are threats to the top-layer elites and embedded deep-state managers who have intentionally driven the system towards greater hierarchical control and increased upper-stratum gain.

That is why the system reacts by removing civil rights and sabotaging any technology or application venture that would enable communication and free association.

Whereas expression and grass-roots political response would repair the edifice, the needed remedy is aggressively quashed by those at the top who judge that the crisis is not one that can truly threaten them, is one that will dissipate with time or can be fixed synthetically, and that the distributed spontaneous solution is unacceptably risky in its potential to expose them.

There results the paradox that the system delays self-repair, builds up the pressure for repair, and creates worsening societal conditions rather than allow the proven natural remedy: free expression, free association, class opposition (based on the actual grievances rather than surrogates), and negotiated structural adjustments.

The pathology of the system in rejecting self-repair can be understood as follows.

Dominance hierarchies are both stable and evolutionarily advantageous only if effective balancing forces against creeping or runaway totalitarianism are admitted. A dominance hierarchy is doomed when its highest codes allow an elite class to have disproportionate power, including the power to modify the highest codes without restraint. In particular, in a society in which the state — controlled by an elite class — effectively has a technological monopoly on lethal force, the balancing mechanism of free expression, free association, and real influence — otherwise known as “democracy” — must be allowed.

It follows that any code that prevents free expression and free association is itself pathological. If all expression and all association are allowed, then the optimal conditions for self-repair are realized and a stable and resilient hierarchical structure will result. Since it is grounded in free expression and free association, then it will be optimally just. Justice is a thus self-organized and maintained hierarchy, not elite-given “equity” within a totalitarian matrix.

For free expression and free association to be meaningful many necessary conditions are implied: access to information, actual institutional transparency, access to the travel and communication infrastructures, absence of imposed barriers to association, absence of controls over personal choices, real opportunity for decent economic conditions that allow significant democratic participation, and the very novel concept of uniform application of just laws… Any rule that in-effect bars a necessary condition is also itself pathological.

I end this essay with a consideration of the special features that make anti-expression laws pathological, in the above sense of preventing self-repair of the societal dominance hierarchy.

The anti-speech laws, whether cast as “hate speech” criminal code provisions, or civil defamation law, or civility “codes of conduct” on campuses, have been manipulatively introduced by the elite because the elite are those most threatened by free speech and free association.

Speech is the means by which individuals use non-violent persuasion to acquire influence in society. It is the means that enables politics. In the USA, where citizens have a beneficial right even to bear arms for any required overthrow of the government2,3, freedom of expression was meant to be absolute, in that the USA constitution does not have a “balancing” clause as is common in other Western jurisdictions.4

Laws that enforce punishment for individual speech allegedly “causing” negative personal reactions in society at large are antithetical to democracy, and are immeasurably harmful to human emancipation and personal development. The above-mentioned examples are such anti-speech laws, notably including defamation law.5 They enforce punishments against individual speech that is alleged to “cause” an emotional or persuasive effect in others, which is deemed an unacceptable effect that must be targeted for elimination by state intervention against the presumed “cause”.

The said “emotional or persuasive effect” alleged to arise from the spoken words, in different laws, includes:

  • being induced to feel “hate” (anger, hostility, animosity) against a group in society
  • being induced to have a negative overall opinion about a specific person
  • being induced to adopt an ideology or political stance deemed impermissible (“hateful”)
  • being induced to commit suicide
  • being induced to participate in actuating a genocide
  • being induced to commit crimes of physical aggression or property damage

The underlying principle of these laws is that the person speaking words carries a punishable liability for what those words might induce in unspecified others, irrespective whether any actual physical crime occurs and irrespective of whether the words determinatively “cause” an actual physical crime. To be clear, under these laws, a judge arbitrarily (without needing evidence beyond the impugned words themselves and their method of delivery) decides whether the words induce deemed undesirable thoughts, opinions and attitudes in unspecified persons at large. Nothing else is required to establish liability or guilt, and by design it is impossible to disprove the charge, nor is an attempt to disprove admitted in court.

No matter how it may be masked with legalese or scholarly rationalization, this is precisely the nature of the anti-speech codes that are: “hate speech” criminal code provisions, anti-blasphemy laws, anti-historical-revisionism laws, anti-obscenity laws, the common law of civil defamation, and campus codes of conduct. One could add any “norms of expressive conduct” law.

For example, in defamation law, the impugned words are presumed to “cause” a low opinion of the plaintiff in the minds of unspecified others at large. In legalese: “general damage to reputation is presumed”. No causation proof is required of the claimant. Intent to harm is irrelevant (malice is presumed). No actual damage (loss of job, etc.) need be established. The words themselves as perceived by the judge are sufficient evidence. The judge must only opine, not on the intended meaning of the words, but on the meaning of the words in the mind of an imaginary listener. Such is civil defamation law, and there is no legal limit on the quantum of damages or the duration of gag orders that may be ordered under penalty of jail.5

These anti-speech laws, of course, are distinguished from laws that address harassment and intimidation of a specific target person (actual victim) or that address chain-of-command orders to commit crimes. They are also distinguished from the tort (law) of injurious falsehood, which “consists of the malicious publication of a falsehood concerning the plaintiff that leads other persons to act in a manner that causes actual loss, damage, or expense to the plaintiff,” irrespective of any effect on “reputation”.6

Thus, the anti-expression laws are eminently pathological from a systemic perspective. They directly impede repair of the dominance hierarchy, without providing any systemic benefit. They achieve this by suppressing the individual impulse to influence by communication, which is the elemental foundation of democracy.

As such, a study of the development of and pervasive use of anti-speech laws informs us both of the intensity of harmful elite efforts to protect illegitimate advantages and of the degree of totalitarianism in society. The present USA (civil) war on “hate expression” and its condoning by large swaths of society is a measure of a high degree of totalitarianism and a concomitant high degree of manipulation of public sentiment. It is an indicator of fundamental internal instability of the kind that accompanies the collapse of an empire.

  1. Our Broken Economy, in One Simple Chart”, by David Leonhardt, The New York Times, 2017-08-07. []
  2. Negroes with Guns”, by Robert F. Williams, 1962 (Martino Publishing, CT, 2013). []
  3. How Nonviolence Protects the State”, by Peter Gelderloos, 2007 (South End Press). []
  4. Towards a Rational Legal Philosophy of Individual Rights”, by Denis Rancourt, Dissident Voice, 2016-11-15. []
  5. Canadian defamation law is noncompliant with international law”, by Denis Rancourt, Ontario Civil Liberties Association, 2016-02-01. (And published in Dissident VoicePart-1Part-2). [] []
  6. Injurious Falsehood”, mcconchie law corporation (legal encyclopedia), accessed on 2017-09-06. []

Power Corrupts: A Culture of Compliance Breeds Despots and Predators

President Bill Clinton and Miramax Chief, Harvey Weinstein at Hillary Clinton’s Birthday Party at the Hudson Hotel in New York City. October 25, 2000 (Photo: Nick Elgar/ImageDirect)

By John W. Whitehead

Source: The Rutherford Institute

“All governments suffer a recurring problem: Power attracts pathological personalities. It is not that power corrupts but that it is magnetic to the corruptible.”― Frank Herbert

Power corrupts.

Worse, as 19th-century historian Lord Acton concluded, absolute power corrupts absolutely.

It doesn’t matter whether you’re talking about a politician, an entertainment mogul, a corporate CEO or a police officer: give any one person (or government agency) too much power and allow him or her or it to believe that they are entitled, untouchable and will not be held accountable for their actions, and those powers will eventually be abused.

We’re seeing this dynamic play out every day in communities across America.

A cop shoots an unarmed citizen for no credible reason and gets away with it. A president employs executive orders to sidestep the Constitution and gets away with it. A government agency spies on its citizens’ communications and gets away with it. An entertainment mogul sexually harasses aspiring actresses and gets away with it. The U.S. military bombs a civilian hospital and a school and gets away with it.

Abuse of power—and the ambition-fueled hypocrisy and deliberate disregard for misconduct that make those abuses possible—works the same whether you’re talking about sexual harassment, government corruption, or the rule of law.

For instance, 20 years ago, I took up a sexual harassment lawsuit on behalf of a young woman—a state employee—who claimed that her boss, a politically powerful man, had arranged for her to meet him in a hotel room, where he then allegedly dropped his pants, propositioned her and invited her to perform oral sex on him.

Despite the fact that this man had a well-known reputation for womanizing and this woman was merely one in a long line of women who had accused the man of groping, propositioning, and pressuring them for sexual favors in the workplace, she was denounced as white trash and subjected to a massive smear campaign by the man’s wife, friends and colleagues (including the leading women’s rights organizations of the day), while he was given lucrative book deals and paid lavish sums for speaking engagements.

William Jefferson Clinton eventually agreed to settle the case and pay Paula Jones $850,000.

Here we are 20 years later and not much has changed.

We’re still shocked by sexual harassment in the workplace, the victims of these sexual predators are still being harassed and smeared, and those who stand to gain the most by overlooking wrongdoing (all across the political spectrum) are still turning a blind eye to misconduct when it’s politically expedient to do so.

This time, it’s Hollywood producer Harvey Weinsteinlongtime Clinton associate and a powerhouse when it comes to raising money for Democrats—who is being accused of decades of sexual assaults, aggressively sexual overtures and harassment.

I won’t go into the nauseating details here. You can read them for yourself at the New York Times and the New Yorker.

Suffice it to say that it’s the same old story all over again: man rises to power, man abuses power abominably, man intimidates and threatens anyone who challenges him with retaliation or worse, and man gets away with it because of a culture of compliance in which no one speaks up because they don’t want to lose their job or their money or their place among the elite.

From what I’ve read, this was Hollywood’s worst-kept secret.

In other words, everyone who was anyone knew about it. They were either complicit in allowing the abuses to take place, turning a blind eye to them, or helping to cover them up.

It’s not just happening in Hollywood, however.

And it’s not just sexual predators that we have to worry about.

For every Harvey Weinstein (or Roger Ailes or Bill Cosby or Donald Trump) who eventually gets called out for his sexual misbehavior, there are hundreds—thousands—of others in the American police state who are getting away with murder—in many cases, literally—simply because they can.

The cop who shoots the unarmed citizen first and asks questions later might get put on paid leave for a while or take a job with another police department, but that’s just a slap on the wrist. The shootings and SWAT team raids and excessive use of force will continue, because the police unions and the politicians and the courts won’t do a thing to stop it. Case in point: The Justice Department will no longer attempt to police the police when it comes to official misconduct. Instead, it plans to give police agencies more money and authority to “fight” crime.

The war hawks who are making a profit by waging endless wars abroad, killing innocent civilians in hospitals and schools, and turning the American homeland into a domestic battlefield will continue to do so because neither the president nor the politicians will dare to challenge the military industrial complex. Case in point: Rather than scaling back on America’s endless wars, President Trump—like his predecessors—has continued to expand America’s military empire and its attempts to police the globe.

The National Security Agency that carries out warrantless surveillance on Americans’ internet and phone communications will continue to do so, because the government doesn’t want to relinquish any of its ill-gotten powers. Case in point: The USA Liberty Act, proposed as a way to “fix” all that’s wrong with domestic surveillance, will instead legitimize the government’s snooping powers.

Unless something changes in the way we deal with these ongoing, egregious abuses of power, the predators of the police state will continue to wreak havoc on our freedoms, our communities, and our lives.

Police officers will continue to shoot and kill unarmed citizens. Government agents—including local police—will continue to dress and act like soldiers on a battlefield.

Bloated government agencies will continue to fleece taxpayers while eroding our liberties. Government technicians will continue to spy on our emails and phone calls. Government contractors will continue to make a killing by waging endless wars abroad.

And powerful men (and women) will continue to abuse the powers of their office by treating those around them as underlings and second-class citizens who are unworthy of dignity and respect and undeserving of the legal rights and protections that should be afforded to all Americans.

As Dacher Keltner, professor of psychology at the at the University of California, Berkeley, observed in the Harvard Business Review, “While people usually gain power through traits and actions that advance the interests of others, such as empathy, collaboration, openness, fairness, and sharing; when they start to feel powerful or enjoy a position of privilege, those qualities begin to fade. The powerful are more likely than other people to engage in rude, selfish, and unethical behavior.”

After conducting a series of experiments into the phenomenon of how power corrupts, Keltner concluded: “Just the random assignment of power, and all kinds of mischief ensues, and people will become impulsive. They eat more resources than is their fair share. They take more money. People become more unethical. They think unethical behavior is okay if they engage in it. People are more likely to stereotype. They’re more likely to stop attending to other people carefully.”

Power corrupts.

And absolute power corrupts absolutely.

However, it takes a culture of entitlement and a nation of compliant, willfully ignorant, politically divided citizens to provide the foundations of tyranny.

As researchers Joris Lammers and Adam Galinsky found, those in power not only tend to abuse that power but they also feel entitled to abuse it: “People with power that they think is justified break rules not only because they can get away with it, but also because they feel at some intuitive level that they are entitled to take what they want.”

That sense of entitlement and immunity from charges of wrongdoing dovetails with Richard Nixon’s belief that “when the President does it, that means that it is not illegal.”

For too long now, America has played politics with its principles and allowed the president and his colleagues to act in violation of the rule of law.

“We the people” are paying the price for it now.

Americans have allowed Congress, the White House and the Judiciary to wreak havoc with our freedoms. They have tolerated an oligarchy in which a powerful, elite group of wealthy donors is calling the shots. They have paid homage to patriotism while allowing the military industrial complex to spread death and destruction abroad. And they have turned a blind eye to all manner of wrongdoing when it was politically expedient.

This culture of compliance must stop.

The empowerment of petty tyrants and political gods must end.

For starters, let’s go back to the basics: the Declaration of Independence, the U.S. Constitution and the Bill of Rights.

Let’s recommit to abiding by the rule of law.

Here’s what the rule of law means in a nutshell: it means that everyone is treated the same under the law, everyone is held equally accountable to abiding by the law, and no one is given a free pass based on their politics, their connections, their wealth, their status or any other bright line test used to confer special treatment on the elite.

Let’s demand scrutiny and transparency at all levels of government, which in turn will lead to accountability.

We need to stop being victimized by these predators.

As I point out in my book Battlefield America: The War on the American People, I’m not just talking about the political predators in office, but the ones who are running the show behind the scenes—the shadow government—comprised of unelected government bureaucrats whose powers are unaffected by elections, unaltered by populist movements, and beyond the reach of the law.

There is no way to erase the scars left by the government’s greed for money and power, its disregard for human life, its corruption and graft, its pollution of the environment, its reliance on excessive force in order to ensure compliance, its covert activities, its illegal surveillance, and its blatant disdain for the rule of law.

“We the people”—men and women alike— have been victims of the police state for so long that not many Americans even remember what it is to be truly free anymore. Worse, few want to shoulder the responsibility that goes along with maintaining freedom.

Still, we must try.

Kafka Warned Us

By

Source: CounterPunch

Kafka’s The Trial can be read in retrospect as a prelude to the Twentieth/Twenty-First century. Although probably not written as prophecy, Kafka’s short unfinished book nevertheless provides a road map to the terrors of the current Surveillance State.

As readers of CounterPunch are all too familiar, modern man, as a single individual, is at the mercy of the modern state and those who, lurking in semi-secrecy, direct it.

Kafka’s The Trial superbly conveys the unease of our current existential situation.

Early one morning, The Trial’s main protagonist, Joseph K, awakes to find that, totally unexpectedly, he has been arrested. Throughout the book he endeavors to find the reason for his arrest without any definite success.

However, what he does discover is a vast semi-secret bureaucracy/organizaton whose inner workings and outward displays of power and decision making remain opaque at best.

Initally, Joseph K, believes that he lives in a “Rechtsstaat” (a state where the rule of law is respected) and thus where it is expected that all civilized norms and laws are upheld.

Yet, he soon comes to see that he has lived in a state of fundamental error and illusion about the true nature of his existence.

What appeared to him as a well ordered and just state is, all of a sudden, revealed to be a capricious omnipotent octopus capable of strangling (in this case literally) anyone deemed to be, for whatever reason, expendable.

All law is suspended or, at least, made a mockery of. All that remains are the inner, turgid demands of power.

Joseph K. is convinced of his innocence. But his conviction is no match for the monolithic power that stands against him. He is eventually crushed, if not by his enemy’s repetitive legal machinations, then by his fatalistic far-reaching administrative power.

In the end, the “Organization” which Joseph K has confronted is almighty and can be controlled by neither appeals to law, logic, or custom. In this, modern man is in a similar situation.

He stands, at any moment, beneath the mercy of a gigantic machinery that, if it wills, can almost casually set into motion his utter annihilation. The devastation and erasure of ones past, present, and future self is an ever-present possible function of the modern state. Advances in technology and organization make such a function all the more easier.

How to combat this greatest threat to humankind’s liberty will make the difference of whether or not future generations live in a world of securely grounded freedom or if they will succumb “like a dog” to the increasingly totalitarian powers of what we call today: the Surveillance State.

Freedom Is Not Necessarily The Absence Of Tyranny

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.

Dear America: If You Want to Stop Racism, Tear Down the Drug War—Not Statues

We cannot change the future by trying to erase the past. Tearing down a statue is not a solution to racism — ending the drug war is.

By Matt Agorist

Source: The Free Thought Project

On Monday, protesters — reacting to the violence in Charlottesville over the weekend — brought a ladder and some rope to North Carolina and tore down a near century old statue of a Confederate soldier. Unsurprisingly, nothing changed. However, the Durham Police Department and the Durham County Sheriff’s Office announced that they will be seeking criminal charges for those involved in the destruction of the statue.

Watching people wage violence against their fellow human in the name of protecting or tearing down some arbitrary government artifact is as disheartening as it is frustrating. The future cannot be changed by attempting to erase the past.

A statue holds no magical power to make people racists. If anything, the monuments to former racists serve as reminders that the state can and always will be open to the influence of bigotry — and only the state has the power to enforce racism.

An ignorant racist is exactly that — however, if society grants that ignorant racist a political position or a badge and a gun, this ignorant racist now has power over you. Removing or keeping a piece of concrete will never change this.

Jim Crow laws weren’t overturned because people went around town tearing down statues.

Racist government laws were brought to an end because people refused to obey them. Had Rosa Parks used her time and energy lobbying to take down a statue instead of disobeying a racist law, rest assured Browder v. Gayle, which ruled that segregated buses were unconstitutional, would’ve never happened.

Had the Civil Rights Movement in the 1950s not organized the Montgomery Bus Boycott, rest assured, desegregation would’ve taken much longer.

Society has the amazing ability to force positive change through nonviolent and nondestructive means. However, all too often, we let emotions rule our thoughts and take to yelling and fighting in the streets and destroying property. This only serves to create more divide and empower the ranks of the racists.

If we really want to put the brakes on a racist system, fighting with other citizens (even if they are devout racists) will never work.

Boycotts, refusal of service, shaming, exposing — these are the tools we as citizens have against other citizens who are spreading hate and racism.

One amazing private solution to racism actually just happened on Tuesday in Washington. Richard Spencer, the ostensible leader of the white supremacists, was forced to hold his press conference in his own house because businesses refused to allow him to rent their hotels. This campaign of public shaming and refusal of service is far more effective than tearing down a statue or attempting to use the government to ban hate speech.

But what do we do when the state is perpetuating a racist system and prolonging the suffering of minorities? Again, the answer to that question is not to tear down a statue, but to realize where the power of this racism rests.

In America, the area of government that is most responsible for maintaining a racist system, allowing racist actors to oppress their targets with impunity, and perpetuating the suffering and plight of millions through the persecution of morally innocent individuals — is the war on drugs.

Without a doubt, the war on drugs fuels the racist system by targeting minorities and the poor. It serves to increase interactions between police—who are often caught joining the force to act out their racist desires—and the citizens.

The drug war, from the police departments to the court systems, unequivocally targets and punishes minorities harder for the same victimless crimes for which their white counterparts receive slaps on the wrist.

As TFTP reported last year, a scathing report in Harper’s Magazine, written by Dan Baum set the record straight and relieved all doubt over the intentions of the drug war. John Daniel Ehrlichman, counsel and domestic policy chief to President Richard Nixon, came clean on the real reason behind the war on drugs — to criminalize blacks and hippies.

According to Baum, he tracked down Ehrlichman in 1994 at his engineering firm in Atlanta, Georgia.

“You want to know what this was really all about?” Ehrlichman bluntly asked Baum of the war on drugs. “The Nixon campaign in 1968, and the Nixon White House after that, had two enemies: the antiwar left and black people. You understand what I’m saying? We knew we couldn’t make it illegal to be either against the war or black, but by getting the public to associate the hippies with marijuana and blacks with heroin, and then criminalizing both heavily, we could disrupt those communities. We could arrest their leaders, raid their homes, break up their meetings, and vilify them night after night on the evening news. Did we know we were lying about the drugs? Of course we did.”

To this day, the racist intentions behind the war on drugs serve to further oppress black communities. The war on drugs is still creating criminals out of otherwise innocent individuals who’re caught in possession of arbitrary substances, removing their opportunity for employment by giving them criminal records, and guaranteeing a difficult future within the working class.

It is no coincidence that the ACLU refers to the drug war as the new Jim Crow.

As Graham Boyd wrote in 2001, in a report in NACLA:

The war on drugs subjects the United States to much of the same harm, with much of the same economic and ideological underpinnings, as slavery itself. Just as Jim Crow responded to emancipation by rolling back many of the newly gained rights of African-Americans, the drug war is again replicating the institutions and repressions of the plantation. And like slavery and Jim Crow, the drug war garners appalling levels of support. Each has its own rhetoric, each its own claims to unassailable legitimacy. The brutality of slavery was justified on economic and paternalistic grounds. Jim Crow pretended that separate but equal treatment sufficed, even as blacks faced daily lynchings and every form of overt discrimination. The drug war claims morality and protection of children as its goals, while turning a blind eye to the racial injustice it promotes. And with all three systems of oppression, much of society sits idly by, accepting the rhetoric that later will seem so unbelievably corrupt. We will one day understand that the war on drugs was a war on people and communities.

If we really want to deal a blow to this racist system we must strike the root. The drug war is one such root. Until we eliminate the cause of this strife, tearing down all the statues in the world will do nothing. Until we realize that we are financing our own oppression and refuse to support the government programs that keep us in the days of Jim Crow, the tyranny will remain.

It is high time we realize this real solution to this real problem before the entire country is so divided that we enter a new American civil war.

Are We (Collectively) Depressed?

By Charles Hugh Smith

Source: Of Two Minds

We need to encourage honesty above optimism. Once we can speak honestly, there is a foundation for optimism.

Psychoanalysis teaches that one cause of depression is repressed anger.

The rising tide of collective anger is visible in many places: road rage, violent street clashes between groups seething for a fight, the destruction of friendships for holding the “incorrect” ideological views, and so on. I Think We Can Safely Say The American Culture War Has Been Taken As Far As It Can Go.

A coarsening of the entire social order is increasingly visible: The Age of Rudeness.

This raises a larger question: are we as a society becoming depressed as we repress our righteous anger and our sense of powerlessness as economic and social inequality rises?

Depression is a complex phenomenon, but it typically includes a loss of hope and vitality, absence of goals, the reinforcement of negative internal dialogs, and anhedonia, the loss of the joy of living (joie de vivre).

Depressive thoughts (and the emotions they generate) tend to be self-reinforcing, and this is why it’s so difficult to break out of depression once in its grip.

One part of the healing process is to expose the sources of anger that we are repressing. As psychiatrist Karen Horney explained in her 1950 masterwork, Neurosis and Human Growth: The Struggle Towards Self-Realization, anger at ourselves sometimes arises from our failure to live up to the many “shoulds” we’ve internalized, and the idealized track we’ve laid out for ourselves and our lives.

The recent article, The American Dream Is Killing Us does a good job of explaining how our failure to obtain the expected rewards of “doing all the right things” (getting a college degree, working hard, etc.) breeds resentment and despair.

Since we did the “right things,” the system “should” deliver the financial rewards and security we expected. This systemic failure to deliver the promised rewards is eroding social mobility and the social contract while generating frustration, anger, etc.

We are increasingly angry at the system, but we reserve some anger for ourselves, because the mass-media trumpets how well the economy is doing and how some people are doing extremely well. Naturally, we wonder, why them and not us? The failure is thus internalized.

One response to this sense that the system no longer works as advertised is to seek the relative comfort of echo chambers–places we can go to hear confirmation that this systemic stagnation is the opposing political party’s fault.

We don’t just self-sort ourselves into political “tribes” online–we congregate in increasingly segregated communities and states: The Simple Reason Why A Second American Civil War May Be Inevitable.

Americans are moving to communities that align more with their politics. Liberals are moving to liberal areas, and conservatives are moving to conservative communities. It’s been going on for decades. When Jimmy Carter was elected in 1976, 26.8% of Americans lived in landslide counties; that is counties where the president won or lost by 20% of the vote.

By 2004, 48.3% of the population lived in these counties. This trend continues to worsen. As Americans move to their preferred geographic bubbles, they face less exposure to opposing viewpoints, and their own opinions become more extreme. This trend is at the heart of why politics have become so polarizing in America.

We’re self-sorting at every level. Because of this, Americans are only going to grow more extreme in their beliefs, and see people on the other side of the political spectrum as more alien.”

Part of the American Exceptionalism we hear so much about is a can-do optimism: set your mind to it and everything is possible.

The failure to prosper as anticipated is generating a range of negative emotions that are “un-American”: complaining that you didn’t get a high-paying secure job despite having a college degree (or advanced degree) sounds like sour-grapes: the message is you didn’t work hard enough, you didn’t get the right diploma, etc.

It can’t be the system that’s failed, right? I discuss this in my book Why Our Status Quo Failed and Is Beyond Reform: the top 10% who are benefiting mightily dominate politics and the media, and their assumption is: the system is working great for me, so it must be working for everyone. That’s the implicit narrative parroted by status quo mouthpieces.

The inability to express our despair and anger generates depression. Some people will redouble their efforts, others will seek to lay the blame on “the other” (some external group) and others will give up. What few people will do is look at the sources of systemic injustice.

Perhaps we need a national dialog about declining expectations, rising inequality and the failure of the status quo that avoids the blame-game and the internalization trap (i.e. it’s your own fault you’re not well-off).

We need ways to express our resentment, anger, despair, etc. that are directed at the source, the complex system we inhabit, not “the other.” We need to encourage honesty above optimism. Once we can speak honestly, there is a foundation for optimism.

 

Absent Without Leave

By James Howard Kunstler

Source: Kunstler.com

It ain’t bragging if it’s true. I’ve said repeatedly on this blog for years that the federal government would only become more impotent, more incompetent, and more ineffectual as The Long Emergency rolled out. And here we are now, at just such pass in history.

The process has been well underway since the beginning of the century. Even the attempts to expand its scope and reach — such as the post 9-11 addition of God-knows-how-many new intelligence services — has only produced an epic clusterfuck of cross-purposed mission creep that threatens the federal government’s existential legitimacy.

After nearly a year of investigating, the FBI, the CIA, the NSA, the DIA, DHS, et. al. haven’t been able to leak any substantial fact about “Russian collusion” with the Trump election campaign — and, considering the torrent of leaks about all manner of other collateral matters during this same period, it seems impossible to conclude that there is anything actually there besides utterly manufactured hysteria.

Now, one might imagine that this intelligence community could have manufactured some gift-wrapped facts rather than just waves of hysteria, but that’s where the incompetence and impotence comes in. They never came up with anything besides Flynn and Sessions having conversations with the Russian ambassador — as if the ambassadors are not here to have conversations with our government officials. You’d think that with all the computer graphics available these days they could concoct a cineplex-quality feature film-length recording of Donald Trump making a “great deal” to swap Kansas for Lithuania, or Jared Kushner giving piggyback rides to Vladimir Putin in the Kremlin. But all we’ve really ever gotten was a packet of emails from the Democratic National Committee and John Podesta of the Clinton campaign gloating about how nicely they fucked over Bernie Sanders — and that doesn’t exactly reflect so well on what has evolved to be the so-called “Resistance.”

The net effect of all this sound and fury is a government so paralyzed that it can’t even pass bad legislation or execute its existing (excessive) duties. That might theoretically be a good thing, except what we’re seeing are individual departments just veering off on their own, especially the military, which now operates without any civilian control. Apparently General Mattis, the Secretary of Defense, pretty much decided on his own to dispatch another 8,000 US troops to Afghanistan to move things along there in the war’s 16th year. Or did he get President Trump to look up from his Twitter window for three seconds to explain the situation and get a nod of approval?

Perhaps you also didn’t notice the news item over the weekend that a US-led fighter plane coalition shot down a Syrian air force plane in Syrian airspace. In an earlier era that could easily be construed as an act of war. Who gave the order for that, you have to wonder. And what will the consequences be? Reasonable people might also ask: haven’t we already made enough deadly mischief in that part of the world?

With the US military gone rogue in foreign lands, and the intelligence community off-the-reservation at home, and the Trump White House all gummed up in the tarbaby of RussiaGate, and the House and Senate lost in the shuffle, you also have to wonder what anybody is going to do about the imminent technical bankruptcy of the USA as the Treasury Department spends down its dwindling fund of remaining cash money to pay ongoing expenses — everything from agriculture subsidies to Medicare. That well is going dry in the middle of the summer, and without any resolution to the debt ceiling debate, the country will not be able to borrow more to pretend that it’s solvent.

I don’t see any indication that the House and Senate will be able to bluster their way through this. Instead, the situation will compel extraordinary new acts of financial fraud via the central banks and its cadre of Too-Big-To-Fail associates. In the event, the likely outcome will be a spectacular fall in the value of the US dollar, and perhaps consecutively, the collapse of the equity and real estate markets.

The public may not give a shit about Syria, Afghanistan, or federal dairy supports, but they’ll sure perk up and notice that their money is going worthless. I doubt they’ll be clamoring for Hillary Clinton to be installed as the first US Caesar to fix it all.