Tag Archives: Pandemic

Meet BlackRock, the New Great Vampire Squid

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By Ellen Brown

Source: Web of Debt

BlackRock is a global financial giant with customers in 100 countries and its tentacles in major asset classes all over the world; and it now manages the spigots to trillions of bailout dollars from the Federal Reserve. The fate of a large portion of the country’s corporations has been put in the hands of a megalithic private entity with the private capitalist mandate to make as much money as possible for its owners and investors; and that is what it has proceeded to do.

To most people, if they are familiar with it at all, BlackRock is an asset manager that helps pension funds and retirees manage their savings through “passive” investments that track the stock market. But working behind the scenes, it is much more than that. BlackRock has been called “the most powerful institution in the financial system,” “the most powerful company in the world” and the “secret power.” It is the world’s largest asset manager and “shadow bank,” larger than the world’s largest bank (which is in China), with over $7 trillion in assets under direct management  and another $20 trillion managed through its Aladdin risk-monitoring software. BlackRock has also been called “the fourth branch of government” and “almost a shadow government”, but no part of it actually belongs to the government. Despite its size and global power, BlackRock is not even regulated as a “Systemically Important Financial Institution” under the Dodd-Frank Act, thanks to pressure from its CEO Larry Fink, who has long had “cozy” relationships with government officials.

BlackRock’s strategic importance and political weight were evident when four BlackRock executives, led by former Swiss National Bank head Philipp Hildebrand, presented a proposal at the annual meeting of central bankers in Jackson Hole, Wyoming, in August 2019 for an economic reset that was actually put into effect in March 2020. Acknowledging that central bankers were running out of ammunition for controlling the money supply and the economy, the BlackRock group argued that it was time for the central bank to abandon its long-vaunted independence and join monetary policy (the usual province of the central bank) with fiscal policy (the usual province of the legislature). They proposed that the central bank maintain a “Standing Emergency Fiscal Facility” that would be activated when interest rate manipulation was no longer working to avoid deflation. The Facility would be deployed by an “independent expert” appointed by the central bank.

The COVID-19 crisis presented the perfect opportunity to execute this proposal in the US, with BlackRock itself appointed to administer it. In March 2020, it was awarded a no-bid contract under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to deploy a $454 billion slush fund established by the Treasury in partnership with the Federal Reserve. This fund in turn could be leveraged to provide over $4 trillion in Federal Reserve credit. While the public was distracted with protests, riots and lockdowns, BlackRock suddenly emerged from the shadows to become the “fourth branch of government,” managing the controls to the central bank’s print-on-demand fiat money. How did that happen and what are the implications?

Rising from the Shadows

BlackRock was founded in 1988 in partnership with the Blackstone Group, a multinational private equity management firm that would become notorious after the 2008-09 banking crisis for snatching up foreclosed homes at firesale prices and renting them at inflated prices. BlackRock first grew its balance sheet in the 1990s and 2000s by promoting the mortgage-backed securities (MBS) that brought down the economy in 2008. Knowing the MBS business from the inside, it was then put in charge of the Federal Reserve’s “Maiden Lane” facilities. Called “special purpose vehicles,” these were used to buy “toxic” assets (largely unmarketable MBS) from Bear Stearns and American Insurance Group (AIG), something the Fed was not legally allowed to do itself.

BlackRock really made its fortunes, however, in “exchange traded funds” (ETFs). It gained trillions in investable assets after it acquired the iShares series of ETFs in a takeover of Barclays Global Investors in 2009. By 2020, the wildly successful iShares series included over 800 funds and $1.9 trillion in assets under management.

Exchange traded funds are bought and sold like shares but operate as index-tracking funds, passively following specific indices such as the S&P 500, the benchmark index of America’s largest corporations and the index in which most people invest. Today the fast-growing ETF sector controls nearly half of all investments in US stocks, and it is highly concentrated. The sector is dominated by just three giant American asset managers – BlackRock, Vanguard and State Street, the “Big Three” – with BlackRock the clear global leader. By 2017, the Big Three together had become the largest shareholder in almost 90% of S&P 500 firms, including Apple, Microsoft, ExxonMobil, General Electric and Coca-Cola. BlackRock also owns major interests in nearly every mega-bank and in major media.

In March 2020, based on its expertise with the Maiden Lane facilities and its sophisticated Aladdin risk-monitoring software, BlackRock got the job of dispensing Federal Reserve funds through eleven “special purpose vehicles” authorized under the CARES Act. Like the Maiden Lane facilities, these vehicles were designed to allow the Fed, which is legally limited to purchasing safe federally-guaranteed assets, to finance the purchase of riskier assets in the market.

Blackrock Bails Itself Out

The national lockdown left states, cities and local businesses in desperate need of federal government aid. But according to David Dayen in The American Prospect, as of May 30 (the Fed’s last monthly report), the only purchases made under the Fed’s new BlackRock-administered SPVs were ETFs, mainly owned by BlackRock itself. Between May 14 and May 20, about $1.58 billion in ETFs were bought through the Secondary Market Corporate Credit Facility (SMCCF), of which $746 million or about 47% came from BlackRock ETFs. The Fed continued to buy more ETFs after May 20, and investors piled in behind, resulting in huge inflows into BlackRock’s corporate bond ETFs.

In fact, these ETFs needed a bailout; and BlackRock used its very favorable position with the government to get one. The complicated mechanisms and risks underlying ETFs are explained in an April 3 article by business law professor Ryan Clements, who begins his post:

Exchange-Traded Funds (ETFs) are at the heart of the COVID-19 financial crisis. Over forty percent of the trading volume during the mid-March selloff was in ETFs ….

The ETFs were trading well below the value of their underlying bonds, which were dropping like a rock. Some ETFs were failing altogether. The problem was something critics had long warned of: while ETFs are very liquid, trading on demand like stocks, the assets that make up their portfolios are not. When the market drops and investors flee, the ETFs can have trouble coming up with the funds to settle up without trading at a deep discount; and that is what was happening in March.

According to a May 3 article in The National, “The sector was ultimately saved by the US Federal Reserve’s pledge on March 23 to buy investment-grade credit and certain ETFs. This provided the liquidity needed to rescue bonds that had been floundering in a market with no buyers.”

Prof. Clements states that if the Fed had not stepped in, “a ‘doom loop’ could have materialized where continued selling pressure in the ETF market exacerbated a fire-sale in the underlying [bonds], and again vice-versa, in a procyclical pile-on with devastating consequences.” He observes:

There’s an unsettling form of market alchemy that takes place when illiquid, over-the-counter bonds are transformed into instantly liquid ETFs. ETF “liquidity transformation” is now being supported by the government, just like liquidity transformation in mortgage backed securities and shadow banking was supported in 2008.

Working for Whom?

BlackRock got a bailout with no debate in Congress, no “penalty” interest rate of the sort imposed on states and cities borrowing in the Fed’s Municipal Liquidity Facility, no complicated paperwork or waiting in line for scarce Small Business Administration loans, no strings attached. It just quietly bailed itself out.

It might be argued that this bailout was good and necessary, since the market was saved from a disastrous “doom loop,” and so were the pension funds and the savings of millions of investors. Although BlackRock has a controlling interest in all the major corporations in the S&P 500, it professes not to “own” the funds. It just acts as a kind of “custodian” for its investors — or so it claims. But BlackRock and the other Big 3 ETFs vote the corporations’ shares; so from the point of view of management, they are the owners. And as observed in a 2017 article from the University of Amsterdam titled “These Three Firms Own Corporate America,” they vote 90% of the time in favor of management. That means they tend to vote against shareholder initiatives, against labor, and against the public interest. BlackRock is not actually working for us, although we the American people have now become its largest client base.

In a 2018 review titled “Blackrock – The Company That Owns the World”, a multinational research group called Investigate Europe concluded that BlackRock “undermines competition through owning shares in competing companies, blurs boundaries between private capital and government affairs by working closely with regulators, and advocates for privatization of pension schemes in order to channel savings capital into its own funds.”

Daniela Gabor, Professor of Macroeconomics at the University of Western England in Bristol, concluded after following a number of regulatory debates in Brussels that it was no longer the banks that wielded the financial power; it was the asset managers. She said:

We are often told that a manager is there to invest our money for our old age. But it’s much more than that. In my opinion, BlackRock reflects the renunciation of the welfare state. Its rise in power goes hand-in-hand with ongoing structural changes; in finance, but also in the nature of the social contract that unites the citizen and the state.

That these structural changes are planned and deliberate is evident in BlackRock’s August 2019 white paper laying out an economic reset that has now been implemented with BlackRock at the helm.

Public policy is made today in ways that favor the stock market, which is considered the barometer of the economy, although it has little to do with the strength of the real, productive economy. Giant pension and other investment funds largely control the stock market, and the asset managers control the funds. That effectively puts BlackRock, the largest and most influential asset manager, in the driver’s seat in controlling the economy.

As Peter Ewart notes in a May 14 article on BlackRock titled “Foxes in the Henhouse,” today the economic system “is not classical capitalism but rather state monopoly capitalism, where giant enterprises are regularly backstopped with public funds and the boundaries between the state and the financial oligarchy are virtually non-existent.”

If the corporate oligarchs are too big and strategically important to be broken up under the antitrust laws, rather than bailing them out they should be nationalized and put directly into the service of the public. At the very least, BlackRock should be regulated as a too-big-to-fail Systemically Important Financial Institution. Better yet would be to regulate it as a public utility. No private, unelected entity should have the power over the economy that BlackRock has, without a legally enforceable fiduciary duty to wield it in the public interest.

The financialization of the end of the world

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By Kurt Cobb

Source: resilience

For those who are fans of cartoons from The New Yorker magazine and consistent readers of this blog, you might be able to guess my two favorite cartoons. In the first one, a man in a coat and tie stands at a podium and tells his unseen audience the following: “And so, while the end-of-the-world scenario will be rife with unimaginable horrors, we believe that the pre-end period will be filled with unprecedented opportunities for profit.”

In the second, a man in a tattered suit sits cross-legged near a campfire with three children listening to him intently as he says this: “Yes, the planet got destroyed. But for a beautiful moment in time we created a lot of value for shareholders.”

Now, in the you-can’t-make-this-stuff-up category, financial writer Paul Farrell used the caption from the first cartoon in a 2015 piece for MarketWatch entitled: “Your No. 1 end-of-the-world investing strategy.” The subheading is: “How to pick stocks for the near term when long-term trends say collapse is near.” The subhead actually seems like it might be another caption from a New Yorker cartoon (or possibly one from The Onion). Why exactly would you invest in stocks—as opposed to seeds of food crops and sturdy garden implements—”when long-term trends say collapse is near”? But I’ll put that down to bad headline writing.

In Farrell’s defense, he frequently used his column in MarketWatch to warn his readers of the coming collapse of modern civilization if we don’t change our ways. He was obliged to give investment advice, of course, because that’s what the column was for.

Few other investment gurus are as intellectually honest as Farrell. Among prominent investment managers, only Jeremy Grantham comes close to understanding the scope of the challenges we face. Grantham wrote a piece in 2013 called “The Race of Our Lives” that outlines the myriad challenges humans face. He starts with a discussion of the fall of civilizations. (He updated his views in 2018.)

One would think that the coronavirus pandemic would allow for some sober reflection among those in the financial community as the pandemic-induced crash of the economy and the markets has called into question the stability of practically all the arrangements of modern civilization. Instead, the focus is on how stock markets could be back at or near all-times highs at the beginning of what is arguably the next Great Depression.

The New Yorker cartoons linked above appropriately characterize the madness that grips late-stage civilizations as their pillars begin to fall. Instead of attempting to adapt to new realities, every attempt is made to maintain the current fragile system. The trillions of dollars pumped into the world financial system by central banks and governments in the wake of the pandemic have done little except stoke renewed financial bubbles in practically all financial markets (and thereby bailed out the mostly wealthy owners of financial assets).

The disconnect is hard to miss. The latest reading of the U.S. Federal Reserve Bank of Atlanta’s GDPNow indicator, which is frequently updated as new data becomes available, now predicts that U.S. GDP will contract by 45.5 percent in the current quarter. (The number is annualized and seasonally adjusted.)

Even so the NASDAQ Composite Index hit a new all-time high earlier this month just three months after the recent trough reached during the crash. The S&P 500 is now very close to a new all-time high. Neither development makes sense in the middle of the worst economic downturn since the Great Depression. For comparison, it took more than two years for the NASDAQ Composite from the bottom in 2009 during the Great Financial Crisis to regain its 2007 highs. It took the S&P 500 more than four years.

Of course, the financialization of everything continues. Vaccine makers are in line for government funds. Naturally, it takes money to develop a vaccine. But drug makers aren’t in the business of keeping people healthy. They are in the business of making money. In the United States at least they are helped by the fact that they aren’t liable if their vaccine kills or injuries someone. And, executives in one money-losing pharmaceutical firm cashed in stock right after their company goosed the shares significantly higher with a very preliminary announcement about the company’s coronavirus vaccine research.

When it comes to real estate, it used to be that people bought it for income and as a store of value. Now firms buy real estate mostly with borrowed money and try to make gains mostly through property price appreciation. Often the real estate loans are packaged into securities that are sold and resold as part of the giant Wall Street and worldwide financial casino.

One of the surest signs of the financialization of everything and the growing disconnect of finance from reality is the credit default swap (CDS). The CDS is essentially insurance for loans and bonds. The buyer pays the seller a premium every month. If the instrument insured defaults, the seller provides a predetermined payment to reimburse the CDS buyer. Now here’s the weird thing: An investor doesn’t even have to own the loan or bond to insure it. It’s like me taking out an insurance policy on your home against fire when I have no ownership or interest in the home. In fact, I have every incentive to make sure your house burns down. Do you see any problem with that?

For normal insurance, the buyer must have an insurable interest. Typically, this means the buyer must actually own the thing he or she is insuring. The CDS, on the other hand, is an ideal instrument for those who want to bring on a financial end-of-the-world scenario. The buyers have every reason to want the economy to go down the drain as their payments may be 10 or even 20 times their initial investment.

Many wealthy people fear and even believe an end-of-the-world scenario is possible or probable. Some think they can hold up in luxury bunkers until the dust clears. But what if, when the dust clears, their wealth is gone and the financial world they used to inhabit has vanished.

Perhaps they will sit around campfires telling their grandchildren about the old days when finance was king and the real economy of goods and services was just a place where rubes got their daily bread—while, of course, simultaneously providing an outsized portion to the rich.

Globalists Reveal That The “Great Economic Reset” Is Coming In 2021

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By Brandon Smith

Source: Alt-Market.com

For those not familiar with the phrase “global economic reset”, it is one that has been used ever increasingly by elitists in the central banking world for several years. I first heard it referenced by Christine Lagarde, the head of the IMF at the time, in 2014. The reset is often mentioned in the same breath as ideas like “the New Multilateralism” or “the Multipolar World Order” or “the New World Order”. All of these phrases mean essentially the same thing.

The reset is promoted as a solution to the ongoing economic crisis which was triggered in 2008. This same financial crash is still with us today, but now, after a decade of central bank money printing and debt creation, the bubble is even bigger than it was before. As always, the central bank “cure” is far worse than the disease, and the renewed crash we face today is far more deadly than what would have happened in 2008 if we had simply taken our medicine and refused to prop up weak parts of the economy artificially.

Many alternative economists often wrongly attribute the Fed’s habit of making things worse to “hubris” or “ignorance”. They think the Fed actually wants to save the financial system or “protect the golden goose”, but this is not reality. The truth is, the Fed is not a bumbling maintenance man, the Fed is a saboteur, a suicide bomber that is willing to destroy even itself as an institution in order to explode the US economy and clear the path for a new globally centralized one world system. Hence, the “Global Reset”.

In 2015 in my article ‘The Global Economic Reset Has Begun’, I stated:

“The global reset is not a “response” to the process of collapse we are trapped in today. No, the global reset as implemented by central banks and the BIS/IMF is the cause of the collapse. The collapse is a tool, a flamethrower burning a great hole in the forest to make way for the foundations of the globalist Ziggurat to be built….economic disaster serves the interests of elitists.”

Now in 2020 we see the globalist plan coming to fruition, with the elites revealing what appears to be their intent to launch their reset in 2021. The World Economic Forum officially announced the Great Reset initiative as part of their Covid Action Platform last week, and a summit is scheduled in January 2021 to discuss their plans more openly with the world and the mainstream media.

The WEF also posted a rather bizarre video on the Reset, which consists of a series of images of the world falling apart (and images of factories releasing harmless carbon emission into the air which I suppose is meant to scare us with notions of global warming). The destruction is then “reset” at the push of a button, with everything reversing back to a pristine human-less world of nature and the words “Join Us”.

The reset, according to discussions by the IMF, is basically the next stage in the formation of a one-world economic system and potential global government. This seems to fall in line with the solutions offered during the Event 201 pandemic simulation; a simulation of a coronavirus pandemic that was held by the Bill And Melinda Gates Foundation and the World Economic Forum only two months before the REAL THING happened at the beginning of 2020. Event 201 suggested that one of the top solutions to a pandemic would be the institution of a centralized global economic body that could handle the financial response to the coronavirus.

Is it not convenient that the events of the real coronavirus pandemic fall exactly in line with the Event 201 simulation, as well as directly in line with the global reset plans of the IMF and the World Economic Forum? As they say, let no crisis go to waste, or, as is the motto of the globalists “Order Out Of Chaos”.

With civil unrest about to become a way of life for many parts of the world including the US, and the pandemic set for a resurgence of infections after the “reopening”, creating a rationale for a second wave of lockdowns probably in July, the economy as we know it is being destroyed. The last vestiges of the system, hanging by a thin thread after the crash of 2008, are now being cut.

The goal is rather obvious – Terrify the population with poverty, internal conflicts and a broken supply chain until they lobby the establishment for help.  Then, offer the “solution” of medical tyranny, immunity passports, martial law, a global economic system based on a cashless digital society in which privacy in trade is erased, and then slowly but surely form a faceless “multilateral” global government which answers to no one and does whatever it pleases.

I remember back in 2014 when Christine Lagarde first began talking about the reset. That same year she also made a very strange speech to the National Press Club in which she started rambling gleefully about numerology and the “magic number 7”. Many within the club laughed, as there was apparently an inside joke that the rest of us were not privy to. Well, I would point out that the World Economic Forum meeting on the global reset in 2021 will be held exactly 7 years after Lagarde gave that speech. Just another interesting coincidence I suppose…

The new world order, the global reset, is a long running scheme to centralize power, but in a way that is meant to be sustained for centuries to come. The elites know that it is not enough to achieve global governance by force alone; such an attempt would only lead to resistance and eternal rebellion. No, what the elites want is for the public to ASK, even beg for global governance. If the public is tricked into demanding it as a way to save them from the horrors of global chaos, then they are far less likely to rebel against it later. Problem – reaction – solution.

The pandemic is not going away anytime soon. Everyone should expect that state governments and the federal government will call for renewed lockdowns. With these new lockdowns, the US economy in particular will be finished. With 40 million people losing their jobs during the last lockdowns, many states only partially reopened, and only 13% to 18% of small businesses receiving bailout loans to survive, the next two months are going to be a devastating wake-up call.

The real solution will be for people to form more self reliant communities free of the mainstream economy. The real solution should be decentralization and independence, not centralization and slavery. The globalists will seek to interfere with any effort to break from the program. That said, they can do very little if millions of people enact localization efforts at the same time. If people aren’t reliant on the system, then they cannot be controlled by the system.

The real test will come with the final collapse of the existing economy. When stagflation spikes even harder than it is right now and prices of necessities double or triple yet again, and joblessness skyrockets even further, how many people will clamor for the globalist solution and how many will build their own systems? How many will be bowing in submission and how many will be ready to fight back. It is a question I still don’t have an answer to even after 14 years of analysis on the issue.

What I suspect is that many people will fight back. Not as many as we might hope for, but enough to defend the cause of liberty. Maybe this is overly optimistic, but I believe the globalists are destined to lose this war in the long run.

Another Bank Bailout Under Cover of a Virus

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By Ellen Brown

Source: Web of Debt

Insolvent Wall Street banks have been quietly bailed out again. Banks made risk-free by the government should be public utilities.  

When the Dodd Frank Act was passed in 2010, President Obama triumphantly declared, “No more bailouts!” But what the Act actually said was that the next time the banks failed, they would be subject to “bail ins” – the funds of their creditors, including their large depositors, would be tapped to cover their bad loans.

Then bail-ins were tried in Europe. The results were disastrous.

Many economists in the US and Europe argued that the next time the banks failed, they should be nationalized – taken over by the government as public utilities. But that opportunity was lost when, in September 2019 and again in March 2020, Wall Street banks were quietly bailed out from a liquidity crisis in the repo market that could otherwise have bankrupted them. There was no bail-in of private funds, no heated congressional debate, and no public vote. It was all done unilaterally by unelected bureaucrats at the Federal Reserve.

“The justification of private profit,” said President Franklin Roosevelt in a 1938 address, “is private risk.” Banking has now been made virtually risk-free, backed by the full faith and credit of the United States and its people. The American people are therefore entitled to share in the benefits and the profits. Banking needs to be made a public utility.

The Risky Business of Borrowing Short to Lend Long

Individual banks can go bankrupt from too many bad loans, but the crises that can trigger system-wide collapse are “liquidity crises.” Banks “borrow short to lend long.” They borrow from their depositors to make long-term loans or investments while promising the depositors that they can come for their money “on demand.” To pull off this sleight of hand, when the depositors and the borrowers want the money at the same time, the banks have to borrow from somewhere else. If they can’t find lenders on short notice, or if the price of borrowing suddenly becomes prohibitive, the result is a “liquidity crisis.”

Before 1933, when the government stepped in with FDIC deposit insurance, bank panics and bank runs were common. When people suspected a bank was in trouble, they would all rush to withdraw their funds at once, exposing the fact that the banks did not have the money they purported to have. During the Great Depression, more than one-third of all private US banks were closed due to bank runs.

But President Franklin D. Roosevelt, who took office in 1933, was skeptical about insuring bank deposits. He warned, “We do not wish to make the United States Government liable for the mistakes and errors of individual banks, and put a premium on unsound banking in the future.” The government had a viable public alternative, a US postal banking system established in 1911. Postal banks became especially popular during the Depression, because they were backed by the US government. But Roosevelt was pressured into signing the 1933 Banking Act, creating the Federal Deposit Insurance Corporation that insured private banks with public funds.

Congress, however, was unwilling to insure more than $5,000 per depositor (about $100,000 today), a sum raised temporarily in 2008 and permanently in 2010 to $250,000. That meant large institutional investors (pension funds, mutual funds, hedge funds, sovereign wealth funds) had nowhere to park the millions of dollars they held between investments. They wanted a place to put their funds that was secure, provided them with some interest, and was liquid like a traditional deposit account, allowing quick withdrawal. They wanted the same “ironclad moneyback guarantee” provided by FDIC deposit insurance, with the ability to get their money back on demand.

It was largely in response to that need that the private repo market evolved. Repo trades, although technically “sales and repurchases” of collateral, are in effect secured short-term loans, usually repayable the next day or in two weeks. Repo replaces the security of deposit insurance with the security of highly liquid collateral, typically Treasury debt or mortgage-backed securities. Although the repo market evolved chiefly to satisfy the needs of the large institutional investors that were its chief lenders, it also served the interests of the banks, since it allowed them to get around the capital requirements imposed by regulators on the conventional banking system. Borrowing from the repo market became so popular that by 2008, it provided half the credit in the country. By 2020, this massive market had a turnover of $1 trillion a day.

Before 2008, banks also borrowed from each other in the fed funds market, allowing the Fed to manipulate interest rates by controlling the fed funds rate. But after 2008, banks were afraid to lend to each other for fear the borrowing banks might be insolvent and might not pay the loans back. Instead the lenders turned to the repo market, where loans were supposedly secured with collateral. The problem was that the collateral could be “rehypothecated,” or used for several loans at once; and by September 2019, the borrower side of the repo market had been taken over by hedge funds, which were notorious for risky rehypothecation. Many large institutional lenders therefore pulled out, driving the cost of borrowing at one point from 2% to 10%.

Rather than letting the banks fail and forcing a bail-in of private creditors’ funds, the Fed quietly stepped in and saved the banks by becoming the “repo lender of last resort.” But the liquidity crunch did not abate, and by March the Fed was making $1 trillion per day available in overnight loans. The central bank was backstopping the whole repo market, including the hedge funds, an untenable situation.

In March 2020, under cover of a national crisis, the Fed therefore flung the doors open to its discount window, where only banks could borrow. Previously, banks were reluctant to apply there because the interest was at a penalty rate and carried a stigma, signaling that the bank must be in distress. But that concern was eliminated when the Fed announced in a March 15 press release that the interest rate had been dropped to 0.25% (virtually zero). The reserve requirement was also eliminated, the capital requirement was relaxed, and all banks in good standing were offered loans of up to 90 days, “renewable on a daily basis.” The loans could be continually rolled over. And while the alleged intent was “to help meet demands for credit from households and businesses at this time,” no strings were attached to this interest-free money. There was no obligation to lend to small businesses, reduce credit card rates, or write down underwater mortgages.

The Fed’s scheme worked, and demand for repo loans plummeted. Even J.P. Morgan Chase, the largest bank in the country, has acknowledged borrowing at the Fed’s discount window for super cheap loans. But the windfall to Wall Street has not been shared with the public. In Canada, some of the biggest banks slashed their credit card interest rates in half, from 21 percent to 11 percent, to help relieve borrowers during the COVID-19 crisis. But US banks have felt no such compunction. US credit card rates dropped in April only by half a percentage point, to 20.15%. The giant Wall Street banks continue to favor their largest clients, doling out CARES Act benefits to them first, emptying the trough before many smaller businesses could drink there.

In 1969, Prime Minister Indira Gandhi nationalized 14 of India’s largest banks, not because they were bankrupt (the usual justification today) but to ensure that credit would be allocated according to planned priorities, including getting banks into rural areas and making cheap financing available to Indian farmers.  Congress could do the same today, but the odds are it won’t. As Sen. Dick Durbin said in 2009, “the banks … are still the most powerful lobby on Capitol Hill. And they frankly own the place.”

Time for the States to Step In

State and local governments could make cheap credit available to their communities, but today they too are second class citizens when it comes to borrowing. Unlike the banks, which can borrow virtually interest-free with no strings attached, states can sell their bonds to the Fed only at market rates of 3% or 4% or more plus a penalty. Why are elected local governments, which are required to serve the public, penalized for shortfalls in their budgets caused by a mandatory shutdown, when private banks that serve private stockholders are not?

States can borrow from the federal unemployment trust fund, as California just did for $348 million, but these loans too must be paid back with interest, and they must be used to cover soaring claims for state unemployment benefits. States remain desperately short of funds to repair holes in their budgets from lost revenues and increased costs due to the shutdown.

States are excellent credit risks – far better than banks would be without the life-support of the federal government. States have a tax base, they aren’t going anywhere, they are legally required to pay their bills, and they are forbidden to file for bankruptcy. Banks are considered better credit risks than states only because their deposits are insured by the federal government and they are gifted with routine bailouts from the Fed, without which they would have collapsed decades ago.

State and local governments with a mandate to serve the public interest deserve to be treated as well as private Wall Street banks that have repeatedly been found guilty of frauds on the public. How can states get parity with the banks? If Congress won’t address that need, states can borrow interest-free at the Fed’s discount window by forming their own publicly-owned banks. For more on that possibility, see my earlier article here.

As Buckminster Fuller said, “You never change things by fighting the existing reality. To change something, create a new model that makes the old model obsolete.” Post-COVID-19, the world will need to explore new models; and publicly-owned banks should be high on the list.

Mass Distraction And Fake “V-Shaped” Recovery Provide Cover For The Fed Induced Crash

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By Brandon Smith

Source: Alt-Market.com

This article, originally titled ‘The Fed Just Got Cover For The Collapse Of The US Economy’, was written by Brandon Smith and first published at Birch Gold Group

The scapegoating has already started. In almost every sector of the economy that is collapsing, the claim is that “everything was fine until the pandemic happened”. From tumbling web news platforms to small businesses to major corporations, the coronavirus outbreak and the national riots will become the excuse for failure. The establishment will try to rewrite history and many people will go along with it because the truth makes them look bad.

And what is the truth? The truth is that the U.S. economy – and in some ways, the global economy – was already collapsing. The system’s dependency on ultra-low interest rates and central bank stimulus created perhaps the largest debt bubble in history – the Everything Bubble. And that bubble began imploding at the end of 2018, triggered primarily by the Federal Reserve raising rates and dumping its balance sheet into economic weakness, just like it did at the start of the Great Depression. Fed Chair Jerome Powell knew what would happen if this policy was initiated; he even warned about it in the minutes of the October 2012 Federal Open Market Committee, and yet once he became the head of the central bank, he did it anyway.

For a year leading up to the pandemic, the Fed was struggling to maintain and suppress a repo market liquidity crisis. National debt, corporate debt and consumer debt were at all-time highs. Companies were desperate for new stimulus, and they were getting crumbs from the Fed, rather than the tens of trillions that they needed just to stay afloat. The central bank had sabotaged the economy, but they had to keep it in a state of living death until they had a perfect cover event for the collapse. The pandemic and inevitable civil unrest do the job nicely.

What many people do not understand is that the Fed does not care about the economy. In fact, every Fed action since its inception in 1913 has led to the downfall of the U.S. The Fed is not a maintenance man trying to stave off collapse; the Fed is a suicide bomber willing to destroy everything including itself in order to serve a greater ideology.

Total global centralization is the goal, and every new disaster is exploited to this end by the establishment. “Order out of chaos” is the motto of the global elites; in other words, in every crisis there is “opportunity”. This crisis has been no different. Suggested solutions have ranged from the creation of a cashless society operating on a digital currency system, to permanent lockdowns in the name of stopping “global warming”, to a surveillance state and medical tyranny utilizing 24/7 tracking of citizens in order to “stop the spread of the virus”. But how does the establishment plan to get people to go along with such freedom-crushing policies?

The pandemic by itself is not enough. The George Floyd riots may be a motivator, but they might fizzle out over time. The real catalyst, as I have said for many years now, will be an ongoing economic crash. This crash, engineered in 2008, has been a long time coming. Everything that is happening today is an extension of what happened over a decade ago. That said, the current phase was set in motion in 2018, as noted above.

The virus and the lockdowns solidified the crash, and while some people including Trump are calling for a V-shaped recovery, this is not going to happen.  Perhaps Trump is referring to stock markets artificially inflated by the Fed stimulus backstop?  Is anyone gullible enough to believe the stock market represents the real economy?  Because today’s jobs report from the BLS, despite all the hype, does not suggest V-shaped recovery to me.  The US lost 40 million jobs in the span of 6 weeks.  The BLS reports a gain of 2.5 million jobs in May as the country “reopened”.  So, we are still down nearly 38 million jobs in the past couple months yet the BLS stats are being called “stunning” and a “sign of recovery”?

The assumption being made here I think is that job gains will now be constant each month from now on.  I think not.  I think the jobs that were gained in May are the peak, and every jobs report after today will disappoint.  Here’s why…

The latest Fed models predict a GDP plunge of 52.8%, and the manner in which the Fed calculates GDP is actually rigged to the upside. It is difficult to predict the REAL fall in data, but we know it will likely be larger than 52%. Keep in mind that this crash is in the 2nd quarter, while the Fed pumped trillions into the system. What exactly did this money printing buy? Well, stock markets stabilized, but the rest of the economy didn’t, and stock market optimism isn’t going to last much longer either is there are renewed lockdowns.

The primary reason we now face a second Great Depression is because the small business sector has been destroyed. Small businesses are vital to the U.S. economy, representing around 50% of the job market. The closures resulted in around 40 million job losses in the past two months. Add that to the 95 million Americans that have been out of work but not counted by the BLS as unemployed – as well as the 11 million people that are counted – and you are looking at nearly 150 million working age people not generating an income.

The latest BLS jobs gains and the way they are being hyped by the media are suspicious to me.  It seems as if the establishment is trying to convince the public that the pandemic will have no affect on the economy and that their jobs will simply be waiting for them after every new shutdown (as long as they adhere to the rules and restriction set up by state and federal governments).

But it’s only going to get worse from here on…

The public doesn’t realize it yet, but many of the businesses that shut down over the past couple months are not coming back. Sure, a lot of them will try to reopen, and there will be a last gasp of activity during the next month or two, but the levels of debt attached to these ventures was already high before the pandemic hit. The recent small business bailouts seemed as if they were designed to give people false hope. According to figures out of JP Morgan, of the 300,000 clients that applied for the small business aid, only 18,000 actually received any. And, of that 18,000, many were larger corporation, not small businesses.

Business sectors most affected include retail and service, which crashed a record 16.4% overall in April. Food service lost approximately 30% of sales. Electronics and appliances lost 60%. Clothing plunged 78%. Auto sales fell 33% in May, and the expected rebound after the reopening has been disappointing.

The businesses most likely to die first are those that had large debt obligations before the lockdowns, as well as those that received no bailout money. Even though companies like General Electric, Verizon, IBM and Tesla all have massive debt issues, they may be kept alive by government bailouts, at least for a time. Small businesses, on the other hand, appear to be slated for destruction.

In particular, I suspect most restaurants besides major chains will go into bankruptcy. Boutique stores and clothing outlets will run out of money fast. Movie theater chains will collapse. Car rental outlets will collapse. Tourism businesses will close en masse and tourism towns will suffer profit losses despite the “reopening” in some states. Larger companies, like airlines, will continue to decline, and they will have to diversify into other areas, such as shipping, in order to survive. The auto industry is not coming back any time soon.

In the case of restaurants, the social distancing requirements reduce the number of customers that they can seat at any given time. Restaurants were already suffering major declines before the pandemic, and while take-out venues might have seen an uptick because of the lockdowns, this will not last as people begin to run out of cash and start cooking at home.

The same goes for small boutique stores, which rely on consumers with expendable cash flows. Such consumers no longer exist, and notions of “extra cash” will disappear along with waning government checks. As for tourism, I think there will be some travel, as lockdown restrictions are partially lifted. Many people in the cities will try to get away for a week or two just to escape and feel normal for a little while. However, I also think mainstream economists are underestimating the number of people who will refuse to travel because of concerns about coming in contact with the coronavirus. Just as retail refuses to rebound, so will tourism profits.

Air travel is unlikely to improve for the same reasons. Social distancing makes airplane flights a losing investment as passenger capacity is reduced. New car sales will remain stagnant because people are traveling less, and the used car market is being stocked with product as average people sell off vehicles to get extra cash to make ends meet.

All of these factors result in long-term job losses and debt defaults for small businesses as well as some larger companies. Which means much higher poverty rates and further dependency on government welfare programs.

The real test for the public will come when lockdowns return. I realize that there is a bit of denial in the population when it comes to this idea. I see many people operating on the assumption that the “reopening” is a long-term situation. I assure you, it is not. As I have noted in many previous articles, the establishment intends to use what I call “wave theory”, or a cycle of shutdowns and openings over the span of a year or longer. There WILL be new lockdowns, if not in the name of a resurgence in COVID infections, it will be in the name of stopping the national riots.

The response from the American people will be critical here. Will we support further lockdowns or martial law, even though the measures would harm us economically? Or will the public resist? Will the political left embrace a second lockdown in the face of further infection spikes? Will conservatives embrace lockdowns in the face of leftist protests and riots? Both sides of the political spectrum are being tempted with the use of a totalitarian government response in order to ensure their personal “safety”.

People must be made to understand the reality of our situation: the economy has already been undermined and this threat is far greater than either the virus or the riots. This is the danger that is being hidden by the pandemic and civil unrest distractions, and it is a threat that the government has no means or intention of saving us from. We must save ourselves, and doing that requires preparation and acceptance that the world is changed.

Why We Stay Asleep When Covid-19 Is Trying to Wake Us Up

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By Kelly Brogan, MD, Ali Zeck, Sayer Ji

Source: KellyBroganMD.com

There’s a phrase we all keep hearing: It doesn’t make sense.

We’ve heard it from citizen journalists, from hospital and police force whistleblowers, and from otherwise compliant and law abiding self-quarantiners whose personal, lived experience simply isn’t adding up to what they are being told is happening by mainstream media.

So what is it that doesn’t make sense?

Is it:

  • that many medical experts have actually downgraded the potential threat of Covid-19 from initial projections by orders of magnitude, including Dr. Anthony Fauci himself, in a New England Journal of Medicine report where he wrote that “the overall clinical consequences of Covid-19 may ultimately be more akin to a severe seasonal influenza (which has a case fatality rate of approximately 0.1%) …” yet we are seeing unprecedented, draconian style control measures being implemented by executive order?
  • that there were staged planning events in October 2019 including Urban Outbreak and Event 201, nationwide CDC Quarantine Program job postings from November of 2019, a coronavirus patent, World Bank pandemic bonds, well in advance of when this pandemic supposedly started, and spontaneously erupted and disseminated globally in a manner that could never be explained through person to person contagion?
  • that doctors are being told to code all deaths as covid without so much as the facade of testing when up to 99% of case fatalities are in individuals with multiple pre-existing conditions, the vast majority of them elderly?
  • that hospitals are supposedly full to the brim with intubated patients when hospital staff are being laid off or furloughed, and whistleblowers are speaking to iatrogenic harm and death (including through intubation) being systematically committed by physicians?
  • that the plan for “return to normal” is being dictated by an unelected software technocrat who happens to also fund GMOs (including non-meat synthetic products), 5G, all of the labs currently working on the vaccine, implantable tracking devices, and the WHO?
  • that people were dying en masse from all manner of preventable illnesses ranging from obesity to hunger to properly prescribed medications with no historical precedent for governmental intervention around these far deadlier epidemics, but now we are to believe that the government cares so much about us that it will “keep us safe” even against our will?
  • that we should consent to be traced and tracked as law-abiding, healthy civilians even when convicted felons and many sex offenders are not?
  • that facial coverings ranging from a scarf to a reused surgical mask with mm pore sizes are going to “keep out” what we are calling a virus which is nm in diameter? 1
  • that mask-wearing has been enforced when the Surgeon General, the WHO and even Fauci say to not wear them, and elected officials congregated on television have never worn them?
  • that Walmart, Target, and Costco are open while small businesses, parks, and beaches have been shuttered since March 14th, many of which will remain permanently closed due to the irreversible economic impacts of the shutdown?
  • that the list of the virus’s associated symptoms have grown and changed, all the while without there being unequivocal evidence of the virus’s point-of-origin in isolation in Wuhan or proof of global contagion?
  • that 5G networks are being installed during a time of “essential work only” in every major metropolitan area while we are quarantined in our homes?
  • that the immune system thrives on diversity of exposure, sunlight, time in nature and in loving company of others, but we are being told to hide alone, indoors?
  • that 30 million people in this country alone have suddenly lost their jobs through “essential business” restrictions, however there happened to be a 1000 page piece of legislation spontaneously prepared to institute the roll out of a system of government handouts and cashless currency?
  • that numbers of cases are determined through testing methods that do not confirm Covid-19, have tested positive in fruit and animals, and which the test inventor said should not be used to identify a specific disease?

This is just a starter list of all that “does not make sense,” and each question invokes a state of cognitive dissonance or confusion…which, when courageously explored, can be a very fertile state for the evolution of thought, perspective, and belief. Courage, in this sense, refers to action in the face of fear. And there is tremendous fear that is brought up through the rupture of trust in our government and associated authorities.

The fear is in place as an emotional caution tape between our defensive survival strategies of childhood and the emancipated sovereignty of individuated adulthood.

This is operative for so many right now who feel the irrepressible tension between what we are being told is happening (a deadly virus is spreading that we need protection from) and the sense that there is more to the story. But so many minimize, dismiss, or otherwise defend the mainstream narrative because to do otherwise would require truly cutting the umbilical cord connecting them to mommy medical system and daddy government. It would require stepping into their adult authority which is their own, individual truth and sovereign power…a terrifying initiation to self that can feel like the world as you know it must end in order to accommodate this new truth and perceived reality.

If we want to feel free, then why would anyone continue to trust and obey an authority that is not here to protect but rather to control and enslave?

Why we stay asleep: unhealed trauma

Aldous Huxley said that the brain is a reducing valve for a much vaster consciousness. We allow in what we are able to, so what constricts the valve?

A child needs to believe that her caregivers fundamentally are doing the best they can to care for and love her. She also believes that they could abandon or reject her at any turn and that this could be life threatening. So she develops many strategies to survive in the unavoidable setting of her dependency on these deficient parental authorities. These strategies involve suppressing her true feelings, her true beliefs, and blaming herself (“I must deserve this”). They lead to dominant thoughts that reflect the parents’ introjected statements or imagined opinions such as “you’re only lovable if you’re useful/keep the peace/follow orders” or “you’re worthless and your body isn’t yours, it’s mine to handle as I see fit” or “you don’t deserve to be happy because you’re bad.”

How does a child stand up to a parent that is abusing them when they are powerless to defend themselves? They don’t. They acquiesce, submit and align with the reality of their abuser in order to stay safe.

But what happens if we never reclaim ourselves from this imprint? What happens when the feelings that surface when we reconsider allegiance to those big, looming authorities that we imagine could crush us if we don’t comply? This is the pattern of intergenerational trauma we see running through the lineage of humanity now, where unexamined trauma leads to a fugue state of dissociation from self and intuition in service of a preserved trust and loyalty to parentified authorities.

And this is how and why world citizens told to go to their room lest the boogie man get them, dutifully comply, stay inside of their homes, and await further orders, welcoming in the “new normal” for themselves and their children.

Global Stockholm Syndrome

There is a name for the psychemotional dynamic of defending the parentified aggressor and we are seeing this surface en masse. It is called Stockholm Syndrome. It refers to a positive bond of attachment formed between a victim of abuse and the abuser. It’s why women defend their right to birth control, antidepressants and medicalized birth, without perceiving the dangerous shadow side of these technologies. And it’s why, today, all around the world, people are shaming, judging, and otherwise deputizing themselves to coerce dissenters into compliance. “Wear a mask! You’re killing people!”

When the wounded and traumatized child is pulling the strings behind the curtain, she says that you can’t handle the emotions that might surface if you choose to relinquish trust and dependency on an outside authority. She says that you will be abandoned, rejected, and may even die. So, if you are feeling powerless, then bully someone else and diffuse some of the discomfort. On an individual level and on a collective level, these dynamics keep us divided against the true oppressor — the authority we unduly empower. This Stockholm Syndrome is characterized by:

  • Positive regard towards perpetrators of abuse or captors.
  • Failure to cooperate with police and other government authorities when it comes to holding perpetrators of abuse or kidnapping accountable.
  • Little or not effort to escape.
  • Belief in the goodness of the perpetrators or kidnappers.
  • Appeasement of captors. This is a manipulative strategy for maintaining one’s safety. As victims get rewarded—perhaps with less abuse or even with life itself—their appeasing behaviors are reinforced.
  • Learned helplessness. This can be akin to “if you can’t beat ‘em, join ‘em.” As the victims fail to escape the abuse or captivity, they may start giving up and soon realize it’s just easier for everyone if they acquiesce all their power to their captors.
  • Feelings of pity toward the abusers, believing they are actually victims themselves. Because of this, victims may go on a crusade or mission to “save” their abuser.
  • Unwillingness to learn to detach from their perpetrators and heal. In essence, victims may tend to be less loyal to themselves than to their abuser. 2

So how is this dynamic upheld? Why wouldn’t we recognize that we are aligning with the perpetrators of our victimhood?

Tactical capture: manipulation and mind control

“The conscious intelligent manipulation of the organized opinions and habits of the masses is an important element in a democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country. We are governed, our minds molded, our tastes formed, our ideas suggested largely by men we have never heard of. In almost every act of our lives, whether in the sphere of politics or business, in our social conduct or our ethical thinking, we are dominated by the relatively small number of persons who understand the mental processes and social patterns of the masses. It is they who pull the wires that control the public mind.” ~ Edward Bernays

One of the great perils of any survival strategy that relies on a benevolent parentified authority and power structure is that we are unable to see how and where and why this system may not share our same values and may indeed be doing us harm. Such systems rely on the empathic and compliant nature of dependent individuals for manipulation and mind control. These psychological operations are totally ineffective if the subject sees through the presented reality to the darker agenda beneath — the story behind the story.

In this way, propaganda can be delivered as a mass public relations campaign, hidden in plain sight to manufacture consent. At this point, every single consensus narrative — on climate change, 9/11, the suffragette movement, war, HIV/AIDS, vaccination, and yes, today’s pandemic — is a smokescreen for deeper agendas that we have been strategically manipulated to accept. Strategic marketing campaigns are also behind the transformation that Bill Gates has enjoyed from a corrupt software engineer to a global philanthropist. It has been through philanthropocapitalistic infusion of hundreds of millions of dollars into the global media (including NPR, and even seemingly impartial “fact checking” organizations), that this reputation has been manufactured out of thin air generating a shared public perception that is divergent from if not antithetical to a lived private reality.

It is because of our unexamined traumas that we fail to critically think, question deeply, and see what is for the seeing. And the fear that these traumas keep active in our present day leads us to abdicate freedoms in exchange for the illusion of safety. We may never question whether the perceived danger originated with the very authority to which we have sacrificed our freedoms. This is why today, we see citizens self-quarantining, policing their neighbors, and begging for a vaccine. Create a problem, agitate the public, and offer a solution that would not have been easily introduced without the previous two steps.

Transitioning paradigms: waking up to adulthood

There is a narrative that is predicated on the belief that things are what they seem to be, or what we see is what it is: the President is an elected official and he makes decisions on our behalf and does the best he can to manage competing interests in service of his party’s priorities or that with our current political party system using elections, that we actually have a choice. There is also an underlying belief that government exists to serve the best interests of the people. There is a belief that our current medical system is a scientifically based care delivery approach that organizes itself around saving lives with safe and effective pharmaceuticals. And yet another belief that the mainstream media may be a bit biased in one direction or another, but is generally reporting on actual events as they unfold and that those who may be censored in the news or social media are disseminating harmful and dangerous information; so if they are censored, justice has been served and people were protected by the censorship. In this worldview, the government is at best, bumbling but functional in its role as protector of the people, and systemic problems are par for the course given the amount of people they are trying to serve and room for human error; and at worst, financially motivated, but not organized or malevolent.

And if our inherent belief is that there are no “bad” people in power, as defined by a significant privation of morality, and that there is a basic order of fairness to our world where justice evens out power imbalances, we will seek out information, people and sources to reflect that belief, and we will feel discomfort when presented with a contrary narrative. Likewise, if our values reflect a sense of benevolence and kindness then we will assume in a very naïve and egocentric way that everyone operates with kindness, maybe doing some harm unintentionally, but really doing the best they can, even when we are faced with opposing facts.

But for many, at some point, the perspective of the idealized authority ceases to align with a personal, lived experience, and our true selves begin to rattle the cage. This process represents, for many, the death of the former self, of familiar reality, and of all that is known.

We slide down the rabbit hole of critical thinking, and we see a the mainstream orthodoxy as reflective of agendas that are highly designed, intentionally deceptive, and strategically organized, whether by extraterrestrial vampires, the deep state elite, or the medical or military industrial complexes, and that reality is anything but what we have been told it is. In this narrative there is a deep conviction that morality has no place in politics and that power and advancement should be sought using any means necessary, no matter the lives lost or people harmed, the overall agenda of the ruling is the objective. There are layers and layers of information and ever deepening realities that begin to reveal a plan hidden in plain sight as in the widely accessible “possible scenarios” Lockstep 2010 document  and Agenda 2030, that reveal an intent to subjugate the human species into a new global governance structure (i.e., new world order), welfare state dependencies, real-time total surveillance and tracking, and biomedically delivered slavery.

And with this awakening to truth, you begin to see all of the ways in which you have supported, condoned, and permitted the parentified controller to manipulate you. It’s as if you are a 45 year old woman living at your parents’ house; and they abuse you, physically, emotionally, and verbally; they starve you, and control you; and you feel that you don’t have a choice to live on your own because you’d be homeless otherwise. Is that really the truth? What if the most incredible life awaits you just outside of your choice to self-emancipate? This narrative cuts cords with the belief that health and “safety” is anyone’s responsibility but our own. It leaves us with this: own your self, govern your self, and learn how to love your self so that we can finally honor one another and this planet.

Why it’s time to bring your shadow into the light

And we wait with the house of our civil liberties being burnt down right in front of us because first and foremost we have an aversion to looking not only at the darkness outside of us, but inside of us as well. This denial and lack of acknowledgement helps fuel the fire of our house burning down, as Martin Luther King said, “For evil to succeed, all it needs is for good men to do nothing.”

If you are ready to resolve your cognitive dissonance by stepping into awareness, it will be imperative that you resist the temptation to run victim stories around all that you discover. When you finally see beneath the veil of the manipulation, mind control, deceit, and social engineering that renders us dependent on a system that cares not for our well-being…this awareness can lead to rage, fear, indignation and a kind of demonization that ultimate keeps us donating our energy to the very source of our potential victimization.

So how do we hold this new awareness with sovereignty?

You recognize that the feelings have been there since childhood. They are not new, and they are not even necessarily about anything happening in the world today. So learning how to hold those feelings, release, and transform them can allow you to engage with equanimity and compassion. It allows you to remain self-possessed.

It’s possible that in this moment in time, our shadows are coming to light, meaning we are experiencing opportunities to see where and how we might be holding the very same energy of those we judge and condemn. We are seeing what we are capable of doing when we don’t know what we are capable of doing…in other words, the ways in which we unconsciously derive a sense of power through our need to be right, be in control, control others, and to otherwise imagine that we are important or superior to anyone else. When we look at these areas of our life and relationship (wherever there is conflict in one’s life), we will be given the opportunity to own it or deny it. When we own it, we see that the “enemies” in power are representatives of the suppressed parts of our collective and individual unconscious — the darkness of will within each of us that is disconnected from the heart. And we can simply choose to stop feeding that unconsciousness by remaining, always in our heart space as we allow our awareness to expand and expand and expand.

Travel Tips

How do you know what’s real and what’s not? When your body gets clear, it tells you the truth. You feel it as a quiet, uncharged knowing, often in the depths of your gut. The truth never feels like fear or urgency, so let the emotions alchemize and then check in.

Who do you trust? Trust can be a donation of personal power, a vector of dependency, and a path to unconscious attachment. What if you treat everyone as if you don’t trust them, or everyone as if you do? What if you never give something away that is contingent upon the person you are giving it to protecting you in a way that you can’t protect yourself? This way, we remain centered in our own agency, relating as individuals without undo merger, but with listening ears and open hearts.

Does your truth matter or is that just ego? It may be an important time in human history to voice your truth. A time to dismantle the illusion that only experts get to speak. So do your research, find your voice, and share it without needing anyone to agree with you or even support you. Recognizing that it may be only your truth, and that it still matters even if it is.

What role does hope play? There is no savior on a white horse. No doctor, politician, president who is going to make everything alright. This is an inside job for each of us. It is time to adult, step into our power, resolve our internal and external conflicts with radical self-acceptance, compassion, and forgiveness, and begin to explore what it would be to recognize that the system isn’t broken, it was made this way. Can we move beyond external forms of governance and the illusion that we need to be protected? That we don’t know how to care for and heal ourselves? It may be time to find out, but it requires giving up all hope of salvation from the outside, and finding that deep faith, trust, and vigilant commitment to policing and governing oneself.

The truth is that we wake up when we are ready, and not one second sooner. And as we do, we’ll need each other to walk the path into the wild unknown to the experience of freedom, joy, and simple beauty that has always been our birthright.

 

References:

Nationwide Uprising Against Failed State Triggered By Police Killings

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By Kevin Zeese and Margaret Flowers

Source: CounterCurrents.org

The nationwide uprising sparked by the murder of George Floyd and other recent racially-motivated events is a response to the bi-partisan failed state in which we live. It comes in the midst of the COVID19 pandemic and the largest economic collapse in the US in more than a century. These three crises have disproportionately impacted people of color and added to longterm racial inequality and injustice.

Black Lives Matter erupted six years ago when a police officer shot and killed Mike Brown in Ferguson, MO. Since that time, police have murdered approximately 1,100 people every year. The response of the government at all levels to the crisis of police killings has been virtually nonexistent. While people seek to avenge the death of George Floyd, the problems are much deeper and the changes needed are much broader.

The Root Of The Problem Is A Failed State

During the COVID19 pandemic, millionaires and billionaires have been bailed out by the government with trillions of dollars while working people were given a pittance of $1,200 per person and a short term increase in unemployment benefits for the more than 40 million people who have lost their jobs. Many workers who provide essential services have had to continue to work putting themselves and their communities at risk.

Urgently needed healthcare is out of reach for millions with no or skimpy health insurance resulting in people dying at home or not going to the hospital until their illness became serious. For this and other reasons, COVID19 is disproportionately impacting communities of color.

Glen Ford of Black Agenda Report puts the mass revolt in the context of the long history of white supremacy that has existed since Africans were brought to the United States. Chattel slavery was enforced by the earliest form of policing, with the first formal slave patrol created in the Carolina colonies in 1704. After the Civil War and a brief period of Reconstruction where African people could participate in civic life, Jim Crow followed with white racists, often allied with Southern police, inflicting terrorism against the Black population through lynchings and other means. Black people were arrested for laws like vagrancy and then punished by being forced to work picking cotton or other jobs. This new form of slavery continues as inmates are forced to work for virtually no pay in prisons, are leased out to dangerous jobs like meat processing, or are used as scabs.

George Floyd’s murder enraged people who have seen too many deaths as a result of police violence. The murder in broad daylight with cameras filming and scores of witnesses showed the impunity of police who are used to not being held accountable for their violence. During the uprising, police have used extreme violence and targeted people with cameras and the media even saying they were the problem.

The root of the problem is a failed state that does not represent the people and has a deep history of racism and inequality that are being magnified by the current crises. The failure to respond to these crises is resulting in an ungovernable country as the social contract has been broken.

Lawlessness among the wealth class, corruption of politicians by campaigns financed by the wealthiest with payoffs to their children and relatives has set the stage for no respect for the law. As one protester exclaimed, “Don’t talk to us about looting, you are the looters. You have been looting from black people. You looted from the Native Americans. Don’t talk to us about violence, you taught us violence.”

The Failed State Cannot Reform Itself

George Floyd’s final words, “I can’t breathe,” echoed the same words of Eric Garner, who was killed six years ago by a New York police officer. Although there were protests then, not much has changed. The system failed to respond.

Failure starts at the top. There have been years of inaction at all levels of government. The New York Times reports “The administration has largely dismantled police oversight efforts, curbing the use of federal consent decrees to overhaul local police departments. Mr. Barr has said that communities that criticize law enforcement may not deserve police protection, and Mr. Trump has encouraged officers not to be ‘too nice’ in handling suspects.”

Trump poured gasoline on the current fire with incendiary rhetoric promising ‘looting leads to shooting’ echoing racists of the past and promising to send in the US military if Democrats can’t stop the uprising. Trump has put the military on alert to deploy to civilian protests. He maintains power by dividing people praising armed protesters who demanded reopening the economy despite the pandemic and calling unarmed protesters against police violence “thugs”.

On Friday, the White House locked down on security alert because of protests. Trump responded by calling for MAGA protesters to come to the White House. They did not come but protests at the White House have continued to increase.

Both Republicans and Democrats are responsible for the current rebellion. Joe Biden has described himself as a ‘law and order’ Democrat from the beginning of his career. He was the primary architect of the federal mass incarceration of Black people and helped add hundreds of thousands of police with militarized equipment to urban communities. He courts police unions that defend killer cops. And Biden opposed the integration of schools.

The failure of leadership continues at the state and local levels with politicians closely tied to the Fraternal Order of Police, which aggressively defends police who kill civilians. Every city can point to a series of police killings with no prosecutions or acquittals and few convictions. Minneapolis is a city with a long history of race-based police violence. Indeed, violence against Indigenous peoples led to the formation of the American Indian Movement.  Tne Intercept summarizes some of the cases:

  • In 2015, the police killed Jamar Clark a  24-year-old black man. Protests lasted two weeks but led to no prosecution.
  • In 2016, Philando Castile, a 32-year-old black motorist, was killed in a Minneapolis suburb. More than two weeks of protest followed and two years later the officer was acquitted.
  • In 2017, Justine Ruszczyk, a 40-year-old white woman, approached a Minneapolis police car to report a sexual assault. The police officer, Mohamed Noor, who shot and killed her was sentenced to 12 years in prison, and her family was awarded a record $20 million settlement.
  • In 2018, body camera footage showed Minneapolis police chasing Thurman Blevins, a 31-year-old black man, and shooting him to death. Prosecutors refused to file charges against the officers who killed Blevins.

Protests have led to some changes but they haven’t solved the problem. Money has been spent on body cameras, which have rarely had any impact. Similarly, training on de-escalation and racial sensitivity has made little difference.

Over the last six years, cities have increased funding for police departments at the expense of health, education, and other underfunded urban programs. Rather than providing people with necessities, the government has relied on controlling neglected communities with an occupying police force. Some of the police are even trained by the Israeli occupiers.

Even in the midst of a pandemic and economic collapse, the government cannot give people access to healthcare, protect their jobs, suspend their rents or control food prices. As Rosa Miriam Elizalde writes in her comparison of the United States to Cuba, the difference is a matter of values. The United States government spends more than 60 percent of the discretionary budget on weapons and war. It should be no surprise that the government acted more quickly to suppress people with militarized police, thousands of National Guard troops, and curfews than it did to protect their lives when the pandemic and recession started.

Reform Is Not Enough: Defund The Police, Give Communities Control, Build Alternatives To Police

The country must look more deeply at policing. Retired police major, Neill Franklin, the executive director of the Law Enforcement Action Partnership told the Intercept, “We need a new paradigm of policing in the United States. It needs to be completely dismantled and reconstructed, not changing a policy here or there.”

The Minneapolis group, Reclaim the Block, wrote a statement calling on the city council to defund the police department. Last week, they made four demands of their city council:

  1. Never again vote to increase police funding.
  2. Propose and vote for a $45 million cut from MPD’s budget as the city responds to projected COVID19 shortfalls.
  3. Protect and expand current investment in community-led health and safety strategies.
  4. Do everything in their power to compel MPD and all law enforcement agencies to immediately cease enacting violence on community members.

This is an agenda that makes sense for cities across the country. A growing movement demands the defunding of police departments. It is evident that the way to reduce police violence is to fund alternative non-law enforcement approaches to conflict resolution, safety strategies, and mental health as well as investing in neglected communities.

Another growing movement calls for democratic community control of the police where communities elect a Civilian Police Accountability Council (CPAC). The critical difference between this and Civilian Police Boards is that the Accountability Council is democratically elected not appointed by the police chief or politicians who are allied with the police. Neill Franklin urges a national database of officers terminated for misconduct so they will not be hired by other police departments.

The New York Times reports that “in 2012, the civilian board in Minneapolis was replaced by an agency called the Office of Police Conduct Review. Since then, more than 2,600 misconduct complaints have been filed by members of the public, but only 12 have resulted in an officer being disciplined.”  The most severe censure was only a 40-hour suspension. Derek Chauvin, who killed George Floyd, has at least 17 misconduct complaints, none of which derailed his career, in nearly two decades with the Minneapolis Police Department.

Chauvin was involved in the fatal shooting in October 2006 when Senator Klobuchar was Minneapolis’ district attorney. Rather than prosecuting Chauvin, she sent the case to a grand jury that declined to indict Chauvin. In 2011, Chauvin was involved in a high-profile shooting of a Native American. He was placed on administrative leave but was reinstated to the force when no charges were brought. If democratic community control of the police were in place, it is highly likely Chauvin would have been removed as a police officer and George Floyd would still be alive.

Support for change is growing. Bus drivers refused to transport arrested protesters for the police in Minneapolis and New York. Payday Report wrote transit union leaders nationwide are instructing members not to cooperate with police in arresting protesters. And Universities are dropping their contracts with the Minneapolis Police Department.

Protests continue nationwide. Thus far escalating police violence and the use of the National Guard has failed to stop them. The government may use the military, although by law there are restrictions on that. There will be efforts to pacify the protests by political leaders and non-profits who will try to take over the leadership. These must be rejected.

To achieve the changes we need, people must stay in the streets and connect the problems we face to the demand for systemic changes. We will need to support each other as many are doing by distributing food and providing medical care, jail support and legal representation. We urge people to meet in assemblies to discuss what their goals are, their vision of how communities could be organized differently and what actions they can take.  We need to build confidence in each other that we can work together for the future we want. That is how we will get there.

 

Kevin Zeese and Margaret Flowers are directors of Popular Resistance

The Covid-19 Chronicles: USA

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By Gunnar Ulson

Source: Land Destroyer

The US is claimed to be hardest hit by Covid-19 with, at the time of writing, over 80,000 deaths attributed to the virus. The nation is also suffering from socioeconomic disaster as lockdowns have driven millions of Americans into not only unemployment, but predictable poverty and hunger as a result.

The crisis has been pounced upon by special interests to help propel various sociopolitical and economic agendas rather than confront and overcome the crisis, leading many to suspect the crisis itself has been deliberately overblown.

Health Impact

At face value the US would seem to be hit by an unprecedented health crisis. Hysteria spread by the mass media focusing on the numbers of infected and dead are provided to a panicked public without context.

Indeed, over 80,000 people have so far died with infections at nearly 1.5 million (confirmed).

Yet a quick look at basic statistics provided by the US government’s own Center for Disease Control (CDC) shows that Covid-19’s impact on human health including total deaths has not even surpassed recent flu season burdens. For example, according to the CDC’s website, the 2017-2018 flu season (running from December 2017 to March 2018) left anywhere between 46,000 to 95,000 dead.

Deaths attributed to Covid-19 have been recorded for 2 full months longer with questionable methods used to attribute Covid-19 as the cause for death.

The death rate has been reported at anywhere between 1% to as high as 5% to 6%. Missing from these seemingly concerning numbers is the fact that widespread testing has not been undertaken. The few instances where it has been done has shown that the number of infected is many times higher than official reports. This means that the death rate is much lower and more comparable to the annual flu than any sort of novel and particularly dangerous pathogen.

Testing in California and New York have revealed that in these states alone millions are likely to have been infected by Covid-19 and simply showed little to no symptoms.

A CBS article titled, “Study shows 13.9% of people tested in New York state have coronavirus antibodies, Cuomo says,” admits:

New York’s first survey of coronavirus antibodies shows that 13.9% of those tested in the state had coronavirus antibodies in their system, meaning they have contracted and recovered from the virus, New York Governor Andrew Cuomo said Thursday. That suggests that 2.7 million people have been infected statewide.

In other words, there are likely more people infected in New York state alone than infected nationwide according to “official” reports.

If information regarding how widespread Covid-19 actually is and how dangerous it is or isn’t, is not accurate, how can the United States formulate appropriate measures to respond to the outbreak?

Measures

Despite what appears to be nothing more than a bad cold or flu, the US has ground its society to a halt with lockdowns and social distancing measures.

“Non-essential” occupations have been encouraged to work from home or to not work at all. The food and beverage industry for example, the second largest employer in the United States, has been ground to a halt with employees furloughed for what has now been weeks or even months. Many of these employees do not expect to return to work until at least June.

In Los Angeles, county officials have extended “stay at home” measures for another 3 months meaning that people will have been shut in for nearly half a year if and when in late August people are allowed to return to their normal lives!

Social distancing is being enthusiastically enforced by police around the nation. In New York City, in order to “protect” people, those not practicing social distancing have been beaten, tased and even arrested. The physical and legal damage done “saving” the public from Covid-19 appears to be more extreme than the actual threat of Covid-19 itself.

Since most New Yorkers (and most people around the entirety of the United States) likely have been infected by the virus anyway, social distancing and lockdowns are more of a psychological exercise than one of isolating the pathogen and stopping its spread, an exercise aimed at addressing public panic, but public panic deliberately fuelled by the media and the government.

Socioeconomic Impact

For the United States, a nation’s whose economy was already in steep decline and losing ground to emerging economies around the globe, most notably China, these lockdowns amount to a self-inflicted mortal wound no conceivable plan of action can reverse.

Had Covid-19 been the deadly pathogen many may believe it is owed to mass media misinformation, the United States stood ill-prepared for it. This was not merely the doing of the current US administration, but a problem known for well over a decade with US presidents from George Bush Jr. to Barack Obama to current US President Donald Trump taking turns ignoring it.

The New York Times reported that things like ventilator shortages were known for at least 13 years and instead of rectifying the problem, large biomedical corporations were allowed by the US government to buy out small contractors tasked with fixing the shortage and ending programs to develop cheap ventilators in order to maintain artificial scarcity and the high prices (and profits) associated with it.

While Covid-19 appears to be far less dangerous than claimed by the mass media, the impact of measures taken by the US government and local state governments has created what is a disaster now being compared to the Great Depression.

Rather than rectifying it by simply rolling back lockdowns and social distancing measures, or even finding ways to aid the millions left unemployed, special interests are taking turns exploiting the crisis by blaming political opponents or even international competitors (like China). They are also looking for ways to cash in, with America’s deeply corrupt pharmaceutical industry being the most prominent example already teeing up massive profiteering by offering “vaccines” to solve Covid-19 fears.

The US, rather than uniting and overcoming whatever Covid-19 actually is, be it a pathogen or an unprecedented wave of widespread panic, has instead allowed itself to become divided and distracted, as well as exposed to the very worst sort of socioeconomic predators lurking amid America’s economic and political landscape.

It is difficult to predict what will happen in the weeks, months and even years to come regarding the state of America socioeconomically considering just how widespread and deep the damage being done now is. A nation as large as the United States plunging so quickly has never historically boded well for that nation nor the world it finds itself free falling in. The US already faced many challenges regarding its decline both at home economically and abroad geopolitically.

Covid-19 has simply exposed and accelerated the process, compounding an already uncertain future with a new degree of damage, danger and desperation.