May 2014 – Page 3 – The Burning Platform

IT DOESN’T TAKE A ROCKET SCIENTIST TO SEE MOST COLLEGE DEGREES WILL HAVE A NEGATIVE ROI

Mish calculates that only 17% of the jobs over the next ten years will require a college degree. Emptying piss from bedpans, changing shit stained sheets, flipping burgers, burning fries, and running a vacuum cleaner don’t require an advanced degree.

Guest Post by Mike Shedlock

BLS Employment Projections Through 2022: How Many Jobs Require a College Degree?

Inquiring minds are taking a look at the BLS Occupation Forecast Through 2022.

Occupations with the Most Job Growth, 2012 and Projected 2022 (Numbers in Thousands)
2012 National Employment Matrix Title	Code	Employment		Change, 2012-22		Median annual wage, 2012
		2012	2022	Number	Percent
Total, All Occupations	00-0000	145,355.8	160,983.7	15,628.0	10.8	$34,750
Personal care aides	39-9021	1,190.6	1,771.4	580.8	48.8	19,910
Registered nurses	29-1141	2,711.5	3,238.4	526.8	19.4	65,470
Retail salespersons	41-2031	4,447.0	4,881.7	434.7	9.8	21,110
Home health aides	31-1011	875.1	1,299.3	424.2	48.5	20,820
Combined food preparation and serving workers, including fast food	35-3021	2,969.3	3,391.2	421.9	14.2	18,260
Nursing assistants	31-1014	1,479.8	1,792.0	312.2	21.1	24,420
Secretaries and administrative assistants, except legal, medical, and executive	43-6014	2,324.4	2,632.3	307.8	13.2	32,410
Customer service representatives	43-4051	2,362.8	2,661.4	298.7	12.6	30,580
Janitors and cleaners, except maids and housekeeping cleaners	37-2011	2,324.0	2,604.0	280.0	12.1	22,320
Construction laborers	47-2061	1,071.1	1,331.0	259.8	24.3	29,990
General and operations managers	11-1021	1,972.7	2,216.8	244.1	12.4	95,440
Laborers and freight, stock, and material movers, hand	53-7062	2,197.3	2,439.2	241.9	11.0	23,890
Carpenters	47-2031	901.2	1,119.4	218.2	24.2	39,940
Bookkeeping, accounting, and auditing clerks	43-3031	1,799.8	2,004.5	204.6	11.4	35,170
Heavy and tractor-trailer truck drivers	53-3032	1,701.5	1,894.1	192.6	11.3	38,200
Medical secretaries	43-6013	525.6	714.9	189.2	36.0	31,350
Childcare workers	39-9011	1,312.7	1,496.8	184.1	14.0	19,510
Office clerks, general	43-9061	2,983.5	3,167.6	184.1	6.2	27,470
Maids and housekeeping cleaners	37-2012	1,434.6	1,618.0	183.4	12.8	19,570
Licensed practical and licensed vocational nurses	29-2061	738.4	921.3	182.9	24.8	41,540
First-line supervisors of office and administrative support workers	43-1011	1,418.1	1,589.6	171.5	12.1	49,330
Elementary school teachers, except special education	25-2021	1,361.2	1,529.1	167.9	12.3	53,400
Accountants and auditors	13-2011	1,275.4	1,442.2	166.7	13.1	63,550
Medical assistants	31-9092	560.8	723.7	162.9	29.0	29,370
Cooks, restaurant	35-2014	1,024.1	1,174.2	150.1	14.7	22,030
Software developers, applications	15-1132	613.0	752.9	139.9	22.8	90,060
Landscaping and groundskeeping workers	37-3011	1,124.9	1,264.0	139.2	12.4	23,570
Receptionists and information clerks	43-4171	1,006.7	1,142.6	135.9	13.5	25,990
Management analysts	13-1111	718.7	852.5	133.8	18.6	78,600
Sales representatives, wholesale and manufacturing, except technical and scientific products	41-4012	1,480.7	1,612.8	132.0	8.9	54,230

The above table is by the BLS. In the following table, I stripped out all the occupations that I believe should not realistically require a college degree. Here are the results.

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Degree Requiring Occupations with the Most Job Growth, 2012 and Projected 2022 (Numbers in Thousands)
2012 National Employment Matrix Title	Code	Employment		Change, 2012-22		Median annual wage, 2012
		2012	2022	Number	Percent
Total, Degree Requiring Occupations		17,500.3	20,231.0	2,730.7	15.6
Registered nurses	29-1141	2,711.5	3,238.4	526.8	19.4	65,470
Secretaries and administrative assistants, except legal, medical, and executive	43-6014	2,324.4	2,632.3	307.8	13.2	32,410
General and operations managers	11-1021	1,972.7	2,216.8	244.1	12.4	95,440
Bookkeeping, accounting, and auditing clerks	43-3031	1,799.8	2,004.5	204.6	11.4	35,170
Medical secretaries	43-6013	525.6	714.9	189.2	36.0	31,350
Licensed practical and licensed vocational nurses	29-2061	738.4	921.3	182.9	24.8	41,540
First-line supervisors of office and administrative support workers	43-1011	1,418.1	1,589.6	171.5	12.1	49,330
Elementary school teachers, except special education	25-2021	1,361.2	1,529.1	167.9	12.3	53,400
Accountants and auditors	13-2011	1,275.4	1,442.2	166.7	13.1	63,550
Medical assistants	31-9092	560.8	723.7	162.9	29.0	29,370
Software developers, applications	15-1132	613.0	752.9	139.9	22.8	90,060
Management analysts	13-1111	718.7	852.5	133.8	18.6	78,600
Sales representatives, wholesale and manufacturing, except technical and scientific products	41-4012	1,480.7	1,612.8	132.0	8.9	54,230

Results

Of the projected 15,628,000 jobs that will be filled by 2022, only 2,731,000 of the jobs in the first table should require a college degree.

However, given the emphasis on getting a degree (and brutally overpaying for it), and given the sheer number of people with degrees who are jobless, many employers will only hire those with degrees simply because they have ability to be picky.

There is another gotcha for the unemployed. Other employers do not want overqualified applicants fearing they will leave at the first opportunity.

Thus, applicants need to correctly figure out whether to dumb-down or trump-up their resume to improve their own chances, even though overall chances for higher paying jobs is poor.

Those who don’t make good use of their college degree will be stuck competing for low-wage jobs as personal care aids, retail sales clerks, food prep workers, and as various assistants.

Education for Education’s Sake

My friend “BC” explains …

In effect, the US is “educating”/socializing a large share of our young people coming of age to be hopelessly indebted and unemployed or unemployable.

With record debt to wages and GDP, withering costs of “health care”, and fully mature and costly urban/suburban/penturban infrastructure build out and associated high fixed costs, a growing majority of millennials simply cannot afford to begin or sustain the urban/suburban, auto-, oil-, and debt-based lives as “consumer units”.

And neither will a majority of Boomers be able to sustain their lifestyles into late life. The situation is made worse in that the US economy has not created a net new full-time private sector job per capita in 30-35 years.

Automation of services sector employment now occurring at an accelerating rate will exacerbate conditions for paid employment and purchasing power, especially for women who make up a disproportionately larger share of employment in medical services (80-85%), “education” (80%), gov’t (60%), and financial services (60%).

Consequently, women face loss of paid employment as a share of the work force and population on a scale that men have experienced in the goods-producing sector since the 1970s-80s.

The relative payoff to a bachelor’s degree peaked in the 1990s and will continue to decline hereafter for the rest of millennials’ lifetimes, especially those in the bottom 90% of households who cannot actually afford a post-secondary credential.

Many argue that the jobs lost in the aforementioned sectors will be replaced by even better jobs in the helping, human touch, and other occupations that we cannot predict; but this presupposes, incorrectly in my view, that the loss of tens of millions of jobs will allow an economy that still produces sufficient level and growth of after-tax, real purchasing power, discretionary income, and tax receipts to support what are more often than not public sector or costly private sector services for the top 1-10% .

Education Model Broken

The US education model is fatally broken because the cost of education is far too high. Soaring student debt with no way to pay it back is one consequence.

In turn, high student debt guarantees low family formation rates with kids moving back in with their parents. Here is a shocking chart that shows what I mean.

The above chart was part of my Wine Country Conference II presentation, which will be out shortly.

Note that approximately 12% of women and 17% of men aged 25-34 now live with their parents. The implications on household formation, child raising, and home buying are obvious.

Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com

Meet Directive 3025.18 Granting Obama Authority To Use Military Force Against Civilians

Submitted by Tyler Durden on 05/29/2014 12:50 -0400

While the “use of armed [unmanned aircraft systems] is not authorized,” The Washington Times uncovering of a 2010 Pentagon directive on military support to civilian authorities details what critics say is a troubling policy that envisions the Obama administration’s potential use of military force against Americans. As one defense official proclaimed, “this appears to be the latest step in the administration’s decision to use force within the United States against its citizens.” Meet Directive 3025.18 and all its “quelling civil disturbances” totalitarianism…

As The Washington Times reports,

Directive No. 3025.18, “Defense Support of Civil Authorities,” was issued Dec. 29, 2010, and states that U.S. commanders “are provided emergency authority under this directive.”

“Federal military forces shall not be used to quell civil disturbances unless specifically authorized by the president in accordance with applicable law or permitted under emergency authority,” the directive states.

“In these circumstances, those federal military commanders have the authority, in extraordinary emergency circumstances where prior authorization by the president is impossible and duly constituted local authorities are unable to control the situation, to engage temporarily in activities that are necessary to quell large-scale, unexpected civil disturbances” under two conditions.

The conditions include military support needed “to prevent significant loss of life or wanton destruction of property and are necessary to restore governmental function and public order.” A second use is when federal, state and local authorities “are unable or decline to provide adequate protection for federal property or federal governmental functions.”

A U.S. official said the Obama administration considered but rejected deploying military force under the directive during the recent standoff with Nevada rancher Cliven Bundy and his armed supporters.

“Federal action, including the use of federal military forces, is authorized when necessary to protect the federal property or functions,” the directive states.

Military assistance can include loans of arms, ammunition, vessels and aircraft. The directive states clearly that it is for engaging civilians during times of unrest.

There is one silver lining (for now)…

“Use of armed [unmanned aircraft systems] is not authorized,” the directive says.

And the full Directive is below…

Dod

The Colder War and the End of the Petrodollar

By Marin Katusa, Chief Energy Investment Strategist

The mainstream media are falling over themselves talking about Russia’s just-signed “Holy Grail” gas deal with China, which is expected to be worth more than $400 billion. But here’s what I think the real news is… and nobody’s talking about it—until now, that is.

China’s President Xi Jinping has publicly stated that it’s time for a new model of security, not just for China, but for all of Asia. This new model of security, otherwise known as “the new UN,” will include Russia and Iran, but not the United States or the EU-28.

This monumental gas deal with China does so much more for Russia than the Western media are reporting. First off, it opens up Russian oil and gas supplies to all of Asia.

It’s no coincidence that Russian President Putin announced the gas deal with China at a time when the tensions with the West over Ukraine were growing. Putin has US President Obama exactly where he wants him, and it’s only going to get worse for Europe and America.

But before I explain why that is, let’s put this deal in terms we can understand. The specific details have not been announced, but my sources tell me that the contract will bring in over US$10 billion a year of revenue to start with. The 30-year deal states that every year, the Russians will deliver 1.3 trillion cubic feet (TCF) of gas to China. The total capital expenditure to build the pipeline and all other infrastructure for the project will be more than $22 billion—this will be one of the largest projects in the world.

You can bet the Russians won’t take payment in US dollars for their gas. This is the beginning of the end for the petrodollar.

The Chinese and Russians are working together against the Americans, and there are many countries that would be happy to join them in dethroning the US dollar as the world’s reserve currency. This historic gas deal between Russia and China is very bad news for the petrodollar.

Through this one deal, the Russians will provide about 25% of China’s current natural gas demand. In a word, this is huge.

It’s also not a coincidence that Putin sealed the deal with China before the Australian, US, and Canadian liquefied natural gas (LNG) terminals are completed. If you read our recent Casey Energy Report issue on LNG, you know to be wary of the hype about LNG’s “bright future.” Take note: this deal is a serious negative for the global LNG projects.

I also stated in our April 2012 newsletter:

Putin has positioned Russia to play an increasingly dominant role in the global gas scene with two general strategies: first, by building new pipelines to avoid transiting troublesome countries and to develop Russia’s ability to sell gas to Asia, and second, by jumping into the liquefied natural gas (LNG) scene with new facilities in the Far East.

Pretty bang on for a comment that was made over two years ago in print, don’t you think?

So, what’s next? Lots.

Putin will continue to outsmart Obama. (Note to all Americans: the Russians make fun of you—not just for your poor choice of presidents, but also for your failed foreign policy that has led to most of the world hating America. But I digress.)

You will see Russia announce a major nuclear deal with Iran, where the Russians will build, finance, and supply the uranium for many nuclear reactors. The Russians will do the same for China, and then Syria.

With China signing the natural gas deal with Russia and the president of China publicly stating that it’s time to create a new security model for the Asian nations that includes Russia and Iran, it’s clear China has chosen Russia over the US.

We are now in the early stages of the Colder War.

The European Union will be the first victim. The EU is completely dependent on Russia for its oil and natural gas imports—over one-third of the EU-28’s supply of oil and natural gas comes from Russia.

I’ve been writing for years about this, and I’m watching it come true right now: the only way out for the EU countries is to use modern North American technology to revitalize their old proven oil and gas deposits. I call it the European Energy Renaissance, and there’s a fortune to be made from it.

Our Casey Energy Report portfolio has already been doing quite well from investing in the European Energy Renaissance, but this is only the beginning. If Europe is to survive the Colder War, it has no choice but to develop its own natural resources. There are naysayers who claim that Europe cannot and will not do that, for many reasons. I say rubbish.

Of course, to make money from this European dilemma, it’s imperative to only invest in the best management teams, operating in those countries with the political will to do what it takes to survive… but if you do, you could make a fortune. Doug Casey and I plan on doing so, and so should you.

For example, two weeks ago in this missive, I discussed “The Most Anticipated Oil Well of 2014,” where if you invested, in just two weeks you could be up over 40%. Not only did I write in great detail about the company, I even interviewed the CEO because of the serious potential this high-risk junior holds.

I said in that Dispatch that the quality of the recorded interview wasn’t first class, but the quality of information was. The company just put together a very high-quality, professional video showing its potential, and I include it here for all to watch.

Since my write-up, the company has announced incredible news. It’s only months away now from knowing whether or not it has made a world-class discovery. Subscribers to the Casey Energy Report are already sitting on some good, short-term profits with this story, but it keeps getting better.

The more the tension is building in Ukraine (and it’s going to get worse), the more money we’re going to make from the Colder War. There’s nothing you can do about the current geopolitical situation, but you can position yourself and your family to benefit financially from the European Energy Renaissance.

Now You Can Take the Lead… We Make It Simple

We expect great things from this company and other companies that are exposed to the European Energy Renaissance. You can read our ongoing guidance on this and our other top energy stocks every month in the Casey Energy Report. In the current issue, for example, you’ll find an in-depth report on the coal sector, uranium, and updates on all of our portfolio companies that are poised to benefit most from the European Energy Renaissance.

There’s no risk in trying it: If you don’t like the Casey Energy Report or don’t make any money within your first three months, just cancel within that time for a full, prompt refund. Even if you miss the cutoff, you can cancel anytime for a prorated refund on the unused part of your subscription. You don’t have to travel 300+ days a year to discover the best energy investments in the world—we do it for you. Click here to get started.

The article The Colder War and the End of the Petrodollar was originally published at caseyresearch.com.

GOOGLE – MOST RACIST, SEXIST SURVEILLANCE COMPANY ON EARTH

Only 1% black employees?????

OMG. Where is Al Sharpton? Shouldn’t he be leading a march on Google headquarters?

How come our Teleprompter in Chief isn’t holding a press conference to decry this outrage?

Is Google under the control of the racist Tea Party?

The MSNBC dykes and fairies must be sputtering mad. Last time I checked, women made up about 50% of the population. How can Google explain only 30% women? Moochelle must be outraged.

NO. The sounds of silence coming from the liberal MSM and our progressive Democratic leadership?

Maybe Google is getting a pass because they pay off these politicians and cooperate with the NSA in tracking our every move. Maybe the advertising money generated from Google ads on the MSNBC and other MSM websites is more important than reporting the truth.

The hypocrisy of the liberal media and the political left is breathtaking to behold.

Google workforce data show company is predominantly white and predominantly male

Google published data detailing the diversity of its workforce, becoming one of the first large tech firms to do so. The data confirm a widely held belief: The company is predominantly male and white.

The numbers are stark: 70% of Google employees are men, and 61% are white. The company, in a blog post published Wednesday, concedes it still has a ways to go to meet its diversity goals: “Put simply, Google is not where we want to be when it comes to diversity, and it’s hard to address these kinds of challenges if you’re not prepared to discuss them openly, and with the facts.”

The issue of diversity in the tech industry has gained prominence during the past year, as social activists, including the Rev. Jesse Jackson, has called out Silicon Valley for its lack of racial and gender diversity and has begun pressing companies to release data about their workforce compositions.

Last week, Jackson appeared at Facebook’s annual shareholder meeting in Redwood City, Calif., to press the company to release data about its workforce, lamenting the scarcity of women and minorities in tech, especially at the executive level.

There are reasons, Google says, for its diversity deficit: Women earn roughly 18% of all computer-science degrees in the U.S., and blacks and Hispanics earn fewer than 5% of those degrees.

GDP SHOCKER!!! – NOT

One month ago I made this post. On that day our beloved government drones at the BEA announced 1st quarter GDP of POSITIVE 0.1%.

YES VIRGINIA, EVEN THE MANIPULATED GOVERNMENT GDP REVEALS RECESSION

I called bullshit and made these comments:

We all know the government’s first reported economic number is manipulated to its best result in order for Wall Street shysters to levitate the stock market with their HFT supercomputers. Then subsequent revisions downward are downplayed and ignored. It’s the American way. This figure will be revised into negative territory over the next few months.

This report was an absolute disaster and PROVES we are in recession. Wall Street will be ecstatic and will levitate to new highs. If Obama can just get World War III started in the 2nd quarter, GDP will soar and economic recovery will have arrived.

Well the first revision is out today and guess what? I was right again. First quarter GDP is now down to NEGATIVE 1%. It will be revised down further. The talking heads will regurgitate the bad weather meme until the cows come home, but it was exports that were revised strongly downward. Did bad winter weather across the entire world keep people from buying our products?

The government drones still insist inflation was only 1.2% in the 1st quarter. That is beyond laughable. REAL GDP in the 1st quarter was closer to NEGATIVE 5%. The higher costs you paid for energy, food and Obamacare actually boosted GDP. Now that is fucked up.

For 99.9% of the people in this country we are experiencing a recession. Meanwhile, the stock market reaches new heights as the .1% have rigged the political, economic and financial system to only benefit themselves. Their time is coming. The music is still playing and they’re still dancing. But the music will end – sooner than they expect. Then there will be hell to pay.

US Economy Shrank By 1% In The First Quarter: First Contraction Since 2011

Submitted by Tyler Durden on 05/29/2014 08:49 -0400

Weather 1 – Quantitative Easing 0.

Spot on the chart below just how high the culmination of over $1 trillion in QE3 proceeds “pushed” the US economy.

Joking aside, even if the realization that nobody can fight the Fed except a cold weather front is quite profound, in the first quarter GDP “grew” by a revised -1.0%, down from the 0.1% first estimate, and well below the -0.5% expected, confirming that while economists may suck as economists, they are absolutely horrible as weathermen.

Bottom line: for whatever reason, in Q1 the US economy contracted not only for the first time in three years, but at the fastest pace since Q1 of 2011. It probably snowed then too.

The breakdown by components is as follows:

Some highlights:

Personal consumption was largely unchanged at 2.09% from 2.04% in the first estimate and down from 2.22% in Q4. Considering the US consumer savings rate has tumbled to post crisis lows at the end of Q1, don’t expect much upside from this number.
Fixed investment also was largely unchanged, subtracting another 0.36% from growth, a little less than the -0.44% in the first estimate and well below the 0.43% contribution in Q4.
Net trade, or the combination of exports and imports, declined from
-0.83% to -0.95%, far below the positive boost of 0.99% in Q4.
The biggest hit was in the change in private inventories, which tumbled from -0.57% in the first revision to a whopping -1.62%: the biggest contraction in the series since the revised -2.0% print recorded in Q4 2012.
Finally, government subtracted another -0.15% from Q1 growth, more than the -0.09% initially expected.

So there you have the New Normal growth, which incidentally now means that in the rest of the year quarterly GDP miraculously has to grow at just shy of 5% in the second half for the Fed to hit the “central tendency” target of 2.8%-3.0%.

And now we await for stocks to soar on this latest empirical proof that central planning does not work for anyone but the 1%.

Review: Age of Limits 2014

Guest Post by Dmitry Orlov

I got back to the boat late last night, after an intense three days of presentations and discussions. This was my third year presenting at this conference, and I am at this point quite heavily invested in this annual event and have started to take on roles I didn’t even know existed when I first showed up there three years ago not knowing what to expect.

For those who haven’t heard of this conference before, here is a synopsis. The venue is unusual for a conference: it is a large campground that occupies a bit of high ground surrounded by a fast-flowing creek nestled in the Allegheny mountains, a few miles from the Maryland border, but quite accessible because it is just a few miles from Interstate 68 and a fast two-hour drive from Baltimore. For those flying via BWI airport, there are usually enough locals driving by BWI on the way to the conference that rides can be arranged. If flying with camping gear is problematic, there is a dormitory with bunk beds and some semi-private rooms. The accommodations are basic, but there are flush toilets, hot showers, free tea and coffee available virtually around the clock, bonfires for when it gets chilly, and two satisfying and plentiful meals a day. A visit to the sweat lodge, optionally followed by a dip in the creek, rounds out the non-intellectual part of the experience.

The intellectual part of the experience is a sort of Epicurean feast for the connoisseurs of collapse. (There are plenty of conferences at which the topic of collapse has been banned; consequently, I am no longer invited to them—to my relief, because life is short, and speaking at these conferences makes it that much shorter.) Virtually all of the attendees without exception have successfully navigated their way through the grieving stage of denial prior to showing up, and there is almost no discussion of whether financial, economic, social or civilizational collapses are possible and/or likely, or whether this is something that beautiful people shouldn’t even worry their pretty little heads about. If you show up while still grappling with denial, then, in all likelihood, your head will explode, and while there will be helpful people on hand to help you find scattered pieces of your cranium in the tall grass, you will spend most of the conference gluing the pieces back together, and will miss out on all the fun. So, if you are new to the topic of collapse but curious about it, please acquaint yourself with the Kübler-Ross model and do whatever you have to, prior to showing up, to get past Stage 1. For maximum effectiveness, try to make it all the way to Stage 5 (acceptance).

In addition to the usual suspects (Gail Tveberg, Albert Bates, John-Michael Greer and me) this year featured a couple of star speakers: Dennis Meadows and Mark Corchrane.

Dennis is Emeritus Professor of Systems Management, former Director of the Institute for Policy and Social Science Research at the University of New Hampshire, and Lead Researcher and co-author of the Club of Rome’s 1972 publication, The Limits to Growth. He successfully predicted the collapse of industrial civilization four decades ago—successfully in that the model he presented back in 1972 has been in remarkable agreement with observations ever since. Since then, he has collected several large boxes of articles attempting to disprove his claims, and a slender stack of articles pointing out that he was right. Even in science, getting it right is not the path to recognition if the truth contradicts the dominant paradigm (of infinite economic growth on a finite planet).

Dennis had agreed to present at this conference reluctantly. He has retired from Club of Rome discussions, and has found more cheerful uses for his time. But he seemed happy with the outcome, saying that this is the first time he faced an audience that did not need convincing. Instead, he took the time to add some details that I think are crucially important, among them the fact that his WORLD3 model is only accurate until the peaks are reached. Once the peaks occur (between 2015 and 2020) all bets are off: past that point, the model’s predictive ability is not to be relied on because the assumptions on which it relies will no longer be valid. Thus, the author of this particular plot, claiming that peak population will occur in 2030, committed the exact error that Dennis warned us against: of looking too far to the right. Once the initial peaks come and go, we will be in a different world than the one he modeled in 1972—a world in which, I foresee, accurate population statistics will no longer be available. We know that the dynamics of global growth are very different from the dynamics of global die-off, but perhaps that is all that we will ever know, because there won’t be anyone left to model or measure the die-off.

Mark Corchrane is Senior Scientist and Professor with the Geospatial Sciences Center of South Dakota State University who specializes in the use of remote sensing to study the impacts of climate change. Mark’s talk was a very thorough demolition job on the various shibboleths that haunt what passes for discourse on climate change in certain intellectually stunted corners of the world. He demolished the denialist claims, and then proceeded to demolish the techno-utopian “solutions,” such as seeding the oceans, seeding the clouds, space mirrors and so on. In doing so, he did not use climate models, explaining that models are quite complicated and open to dispute. Instead, he relied on climate theories which are not in dispute because they agree with observations, and on historical measurements of climate change—its known causes and its apparent effects.

Mark’s conclusions included some tongue-in-cheek “good news”—“We’re all gonna die!”—which I took to be a nod in the general direction of Guy McPherson, who presented at this conference last year, and who predicts near-term human extinction—whereas he clearly feels that “nature bats” (vespertilio naturalis?) do last. But Mark also gave a much more nuanced summation: that while global effects of climate change can be predicted to some extent, the local effects are unpredictable but are certain to be sufficiently dramatic to make life very difficult and perhaps impossible for the vast majority of us. Apparently, there is no place on Earth where you can hide from climate change. Be it the boreal forests of Siberia or the tropics of Borneo, the local destructive effects of climate change on ecosystems are unpredictable. Most of the species alive today have evolved long after the last time such conditions occurred anywhere on Earth, plus the rate of climate change is now very fast, giving them insufficient time to adapt. Consequently, no historical data exists on which such predictions could be based. We do know some things: fish, corals and shellfish will do badly; sea grass and jellyfish will do well. (I hope that there is a sea-grass-and-jellyfish soup recipe out there that results in something palatable!) Overall, his presentation reinforced my feeling that it will be essential to remain mobile, because no one place can be expected to continue to reliably produce food.

This year, each talk was followed by an ample period of moderated discussion. Most of these Q&A sessions quite well, with people queueing up at one of two microphones to ask questions, with plenty of follow-up and group discussion. As always, there were some people who simply craved attention and hogged the microphone in spite of having little to say. But overall this format worked amazingly well: after my talk, one fellow voiced an opinion that home-schooled kids were badly socialized. There followed a spontaneous barrage of commentary on the subject of home schooling (many of the attendees have home-schooled their kids) pretty much blowing his little boat out of the water. After the talk, the discussion continued, with several professional educators providing a lot of detail on how exactly the educational system in the US is broken beyond repair. I walked away with a depth of understanding that I don’t think I would have achieved just by reading books and articles. This is a question that comes up a lot: How do we teach our kids given that the schools (both public and private) are now largely useless (if not harmful)? And the answer seems to be: home-school, or leave the country.

One of the previous presenters who unfortunately did not attend this year was Carolyn Baker. Her presentations had been unique in that they were not all in the head but attempted to get at the emotional side of collapse, and had been found to be helpful by approximately a third of the attendees in overcoming the feelings of shock and grief that naturally arise when delving into the deeply distressing subject matter of this conference. But many other people chose to cope by blocking their emotions and considering collapse as a strictly intellectual challenge, while a small minority compensated for their emotional discomfort by becoming disruptive. An age-old technique for drawing people out of their heads is through drumming and chanting, but certain people chose to ridicule Carolyn’s quite effective use of this technique as “Kumbaya and bongos.” Thus, Carolyn’s work was to some extent polarizing—but in good way, because these people didn’t show up this year. Last year’s attendees included one particularly odious 1%er whose name I forgot, together with her entourage, and they did their best to disrupt things. Needless to say, their absence this year was not missed by anyone.

The nature of the human ape being what it is, once in a while some borderline personalities always find their way into every group, resulting in some amount of drama. But a bigger problem is that the helpful, healthy kind of drama was also almost entirely missing. Most of the attendees seemed to be able to process the intellectual content of the conference, but collapse as an intellectual pursuit seems almost worthless to me. It cannot be reduced to problems and solutions. The universe, and life on earth (jellyfish, cockroaches and all) will go on with or without you, and so the only real problem is you, and how you may need to change in order to adapt. And this is not an entirely intellectual transformation, but also an emotional and a physiological one. To be sure, some of the adaptations are intellectual, and not everyone can surmount even this hurdle. There was one white-haired gentleman in attendance who complimented me on my talk on long-lasting communities by saying that it was interesting to hear “even though we find their business plan distasteful.” He gets an award for the most distasteful use of the phrase “business plan.”

But for those who did manage to grok the content of the conference on an intellectual level, there was nowhere to go further. This problem came up repeatedly in a number of conversations. I hope that these conversations continue, and I hope that next year’s conference does address the questions of personal transformation. Among the questions I would like to see the conference to address are:

1. How can we communicate the reality of collapse to family and friends in ways that are constructive rather than destructive and find helpful ways to reflect our “endarkenment” in our everyday behavior?

2. How can we form personal relationships with people that can survive the disappearance of official life support systems based on finance, commerce and centralized authority?

3. How can we transform our physical selves into ones that will stand a chance, by eliminating lifestyle diseases, bad habits, luxuries and comforts, and by finding maximally independent and resilient ways to provide the necessities?

4. How can we make use of ritual and spiritual practice to transform a group of individuals into a community?

If you have insights that you would like to contribute on any of these questions, please email me directly, and we’ll take it from there. Amazingly, it turns out that there is even some money to throw behind the effort of coming up with good answers to these questions. Don’t worry too much about the mechanics of writing: ClubOrlov’s crack team of editors and proofreaders will transform your writing into publication-quality content. Also, it’s not exactly a rush job: there are twelve months before next year’s conference. But we might as well get started now.

What Do We Mean by Legal?

FREEMANSPERSPECTIVE

We’re surrounded by concerns over what is legal and what isn’t. But what, really, do we mean by “legal”?

The first and most practical meaning of the word, of course, is “things you won’t be punished for doing.”

That definition, however, has never been sufficient for public use. That’s because it’s too stark. If the situation was as simple as a law enforcer saying to John Doe, “Do it the way I tell you or I’ll beat you with my fists,” Mr. Doe would eventually find ways to disobey safely or to cripple the enforcer.

Brute-force enforcement can work, but not over a long period of time, and always at a very considerable cost.

In order to secure long-term, effective obedience from humans, some rationale beyond a fear of violence must be used. People must believe that obeying the enforcer’s word is the right thing to do. That’s why codes of law invoke some type of unseen higher power: a divinity, the “will of the people,” “the way of our ancestors,” or the like. People need a reason to obey, beyond fear.

And by putting the reason to obey above and away from daily life, it cannot be questioned effectively: The higher power has spoken, and only an evil person would question it.

The Exceptions to the Rule

There are times when law is based upon reason, rather than force and edicts from an unquestionable entity. Those times tend to come when political power breaks down. Our best example of it was the common law of England.

The common law began to form in the vacuum of Rome’s influence. The great empire had fallen, leaving people to develop their own ideas. It was a time of reset and reversion toward a natural state.

An early king named Alfred attempted to codify the existing laws around 890 AD. He wrote:

Now I, King Alfred, have collected these laws, and have given orders for copies to be made of many of those which our predecessors observed, and which I myself approved.

Alfred did not write these laws – he collected the previous laws of the people and put them together. This pattern continued:

The Charter of Liberties published by Henry I in 1100 AD says that things ought to be done “through force of law and custom,” or “in a lawful manner.” Henry accepted that that law came from the people (that is, by custom) and not from the state.

The 1164 Clarendon Constitution of England cites a “record and recognition of a certain portion of the customs and liberties and rights of… ancestors.” Thus, laws and customs of the people, rather than laws imposed by rulers, became the law of England.

Even Magna Carta followed the model. Article 39 (1215 version) read:

No free man shall be taken or imprisoned or dispossessed, or outlawed, or banished, or in any way destroyed, nor will we go upon him, nor send upon him, except by the legal judgment of his peers or by the law of the land.

Note that the ultimate arbiter was not the king, but “the law of the land.”

The law that came out of this formation was called the common law. It was developed through the decisions of judges, rather than through legislative statutes or executive edicts. And it was updated by judges, not by legislators. There were no legislators in the modern sense.

The Revolution of 1800

In the decades surrounding 1800 AD, we in the West were given a new type of rulership, featuring three main parts: representatives, legislation, and police. This arrangement, which is incorrectly called Democracy, is how men are ruled today. Under this system, law is no longer based upon reason and doesn’t have to be justified by custom or even by effectiveness – laws are freshly created by an elite class of “representatives.”

This new class of representatives can change the law any time it wishes. In fact, it adds thousands of new laws every year – far more than anyone can memorize. They may play lip service to the common law, but common law and legislation are two very different things, and legislation rules the day.

These days, what is “legal” is controlled by a corrupt political elite. Their law contradicts its own foundational statements, is impossible to know in its entirety, and is enforced arbitrarily.

Reason is no longer a tool of safety. The actions that may trigger punishment cannot be fully understood. The enforcer class will hurt you upon command, asking no questions as to right. Our forefathers would have called this tyranny.

What Shall We Do?

In this situation, three particular actions make sense:

Stop taking laws created by a representative class seriously from any moral standpoint. These are the edicts of people who employ enforcers, and nothing more. Their invocations of constitutions and higher powers are sucker-bait.
We do, unfortunately, need to be aware of how the enforcers are hurting people. There is value in staying safe.
We should start building our own ways of obtaining safety and justice.

Our schooling championed the interests of those who paid our teachers. Now it’s time for us to look after our own interests.

Paul Rosenberg

[Editor’s Note: Paul Rosenberg is the outside-the-Matrix author of FreemansPerspective.com, a site dedicated to economic freedom, personal independence and privacy. He is also the author of The Great Calendar, a report that breaks down our complex world into an easy-to-understand model. Click here to get your free copy.]

HNIC Oreo, West Point, and Mile High BULLSHIT

I am so damn proud of myself. I did not watch even one second of Oreo’s speech on MSM whore networks. However, I did read the transcript … all 10 pages, 5,000+ Words Of Lies. Here is the most egregious bullshit …. with HNIC Oreo’s real thoughts in red.

————————————————————————————-

“Think about it. Our military has no peer. [Shee–it muthafuckers! We kicked the shit out of the might Afghani military in only 10 years!] The odds of a direct threat against us by any nation are low, [you see what a mere trillion dollars a year will buy you?] and do not come close to the dangers we faced during the Cold War. [which I’m trying DAMN hard to revive]”

“Meanwhile, our economy remains the most dynamic on Earth, [what? China is now the number one economy? blow me] our businesses the most innovative. Each year, we grow more energy independent [FRACKING muthafuckers!]. From Europe to Asia, we are the hub of alliances unrivaled in the history of nations. [I love outsourcing!] “

“For the foreseeable future, the most direct threat to America, at home and abroad, remains terrorism, [what? more people in the USA die from bee stings in one year than have died from terrorism in the past decade? See! My program works!!] “

“… by most measures America has rarely been stronger relative to the rest of the world. Those who argue otherwise [in other words, those who disagree wif me, your Savior] — who suggest that America is in decline or has seen its global leadership slip away — are either misreading history or engaged in partisan politics. [or are fucking traitors like the fuckwads on TBP]“

“the United States is and remains the one indispensable nation. [Fuck Putin and his NYT editorial!!] That has been true for the century past, and it will be true for the century to come. [We’re #1! We’re #1!!]“

“Russia’s aggression towards former Soviet states unnerves capitals in Europe while China’s economic rise and military reach worries its neighbors. [Terrorism, Russia, and China …. BE AFRAID … my power depends on it.]“

“Today, according to self-described realists [aka, People With A Brain], conflicts in Syria or Ukraine or the Central African Republic are not ours to solve. And not surprisingly, after costly wars and continuing challenges here at home, that view is shared by many Americans …. But American isolationism is not an option. We don’t have a choice to ignore what happens beyond our borders.” [fuck George Washington and his worries about “foreign entanglements”! GW was a pussy. I am a man!]

“Here’s my bottom line: America must always lead on the world stage. [even if only via my teleprompter speeches, which are so beautiful] If we don’t, no one else will. The military that you have joined is, and always will be, the backbone of that leadership. [Hoo-ah! Even if it means I order you to kill Americans. Hoo-ah!!]“

“… let me repeat a principle I put forward at the outset of my presidency: The United States will use military force, unilaterally if necessary, [especially against piss-ant countries like Libya and Afghanistan] when our core interests demand it — when our people are threatened; when our livelihoods are at stake [like by those cocksuckers in Yemen]; when the security of our allies is in danger. ….. America should never ask permission to protect our people, our homeland or our way of life. (Applause.) [Drones, baby!! Invest in Drone stocks!!]“

“… at the end of this year, a new Afghan president will be in office [a very nice slimy mutherfucker WE picked], and America’s combat mission will be over. …. Now — (applause) — that was an enormous achievement made because of America’s armed forces. [did I mention it only took 10 years and a trillion dollars?]“

“Today, as part of this effort, I am calling on Congress to support a new counterterrorism partnerships fund of up to $5 billion, [don’t worry about your taxes, my gal, Janet, has a printing press] ……. training security forces in Yemen [fuck Yemen!]…. supporting a multinational force in Somalia [fuck Somalia!], ….. train a functioning security force and border patrol in Libya [fuck Libya!] ……….. facilitating French [fuck the Froggies! operations in Mali. [fuck Mali! … where the fuck is Mali, anyway?]“

“A critical focus of this effort will be the ongoing crisis in Syria. …. I made a decision [after Putin made me a laughing stock] that we should not put American troops into the middle of this increasingly sectarian civil war, … So with the additional resources I’m announcing today, we will step up our efforts to support Syria’s neighbors — Jordan and Lebanon, Turkey and Iraq –[quit bitchin’! I already told you Janet has a printing press]“

“Let me make one final point about our efforts against terrorism. The partnerships I’ve described do not eliminate the need to take direct action when necessary to protect ourselves. ….. drone strikes, like those we’ve carried out in Yemen [when was the last time a Yemmi terrorist struck the USof A? See? Droning those muthafuckas works! It’s like the Knockout Game, only for countries.] and Somalia ….. there are times when those actions are necessary and we cannot hesitate to protect our people.[by murdering people in a wedding party]“

“After World War II, America had the wisdom to shape institutions to keep the peace and support human progress — from NATO and the United Nations, to the World Bank and IMF. These institutions have been a force multiplier [for the 1%ers] …… evolving these international institutions [by making even more laws beneficial to only them] to meet the demands of today [making the rich even richer] must be a critical part of American leadership.”

“In Ukraine, Russia’s recent actions recall the days when Soviet tanks rolled into Eastern Europe. [what? not even a single tank rolled into Ukraine? Blow me, asshole.] Our ability to shape world opinion helped isolate Russia right away. [what? the Crimea was annexed? Blow me, asshole.] Because of American leadership, the world immediately condemned Russian actions, Europe and the G-7 joined with us to impose sanctions, [what? Russia and China just completed the largest oil deal in history? Blow me, asshole.]NATO reinforced our commitment to Eastern European allies, the IMF is helping to stabilize Ukraine’s economy, [by forcing asset sales at bargain prices while simultaneously cutting services, increasing taxes, and impoverishing future Ukrainian generations for decades. Hey, it worked in Greece!] “

“This weekend, Ukrainians voted by the millions. [well, at least in the Western part of the country] Yesterday, I spoke to their next president. [A billionaire chocolate-making Nazi we selected beforehand] We don’t know how the situation will play out, and there will remain grave challenges ahead, but standing with our allies on behalf of international order, working with international institutions, has given a chance for the Ukrainian people to choose their future [as long as it’s a future we approve of]— without us firing a shot. [and it only cost you $5 Billion Yellen-bucks, so far]“

“… we reserve all options to prevent Iran from obtaining a nuclear weapon [what? Russia just signed an agreement with Iran to build a dozen nuke plants? Blow me.] ... for the first time in a decade, we have a very real chance of achieving a breakthrough agreement, …. The point is, this is American leadership. This is American strength. [The Joos are forcing me to suck their dicks. So solly.]“

“Likewise, the U.N. provides a platform to keep the peace in states torn apart by conflict.[They have prevented 845 wars just last year alone] …. We are going to deepen our investment [Janet has a printing press] in countries that support these peacekeeping missions …. it’s a smart investment [for companies that make bullets, bombs, and for people who make fortunes off the misery of war]. It’s the right way to lead. (Applause.)”

“In the Asia Pacific [as opposed to the Asia Atlantic], we’re supporting Southeast Asian nations as they negotiate a code of conduct with China on maritime disputes in the South China Sea, [because we are sooo powerful we can actually force China to do shit] and we’re working to resolve these disputes through international law [which we only keep when it benefits us]“

“That spirit of cooperation needs to energize the global effort to combat climate change [Algore!! COW FARTS!!], a creeping national security crisis [Hoo-Ah!! Another crisis! Mo’ Fear, muthafuckas!! Hoo-ah!!] that will help shape your time in uniform, …. I intend to make sure America is out front in putting together a global framework to preserve our planet. [I told you muthafuckas 4 years ago I would heal the planet, and make the oceans rise! I’m gonna save yer Cracka Asses whether you like it or not.]“

“You see, American influence is always stronger when we lead by example … retreating is not strength; that’s weakness. It would be utterly foreign to leaders like Roosevelt and Truman, Eisenhower and Kennedy. [Yeah, I’m comparing myself to them. Suck my big black cock (or, Michelle’s) if you don’t like it.]“

“I believe in American exceptionalism with every fiber of my [fake] being. (Applause.) [Repeat after me, chilrun; “We’re #1!! “We’re #1!!“We’re #1!!]“

“… that’s why I will continue to push to close Gitmo, (Applause.) [what? I promised the SAME shit 6 years ago? Blow me.] …. That’s why we’re putting in place new restrictions on how America collects and uses intelligence [nevermind that the House just absolutely gutted the NSA reforms, aka The USA Freedom Act! Nevermind Snowden and his lies. What are you … some fuckin’ nutjob Libertarian?]— (Applause.) … we stand for the more lasting peace that can only come through opportunity and freedom for people everywhere [except in ‘Murika which has too many people clinging to guns and Bibles]“

“…. in capitals around the globe [but not the USA] there has been a crackdown on civil society [but not the USA] . The cancer of corruption [but not the USA] has enriched too many governments [but not the USA] and their cronies [but not the USA] and enraged citizens [but not the USA] from remote villages to iconic squares.[but not the USA] “

“But remember that because of America’s efforts — because of American diplomacy and foreign assistance, as well as the sacrifices of our military — more people live under elected governments today than at any time in human history. [I can’t believe these fucking plebes are buying this shit.]“

“For unlike other nations, America is not afraid of individual empowerment [since with our 10,000+ federal crime laws we can imprison troublemakers for any cause at any time] . … We’re strengthened by a free press [owned by Big Business and rubber-stamping “approved” to everything I do]…. We’re strengthened by striving entrepreneurs and small businesses [which I tax and regulate to death, I love them so much] That’s who we are. That’s what we represent. (Applause.)”

“Class of 2014, you have taken this time to prepare on the quiet banks of the Hudson [where you learned to blindly follow MY orders]. ….. At West Point, you define what it means to be a patriot. [unlike those Tea Partiers, Republicans, Ron Paul followers, Libertarians, people with functioning brains, Jim Quinn sycophants, and others who refuse to lick my balls.]“

“Three years ago Gavin White graduated from this academy. [a brain-washed Patriot] He then served in Afghanistan. …. Gavin lost one of his legs in an attack. [he got new ones right away … don’t worry about that VA Hospital shit, that’s for common grunts … you guys are officers, Special People] … Today his sister Morgan will graduate. [Dahum! Two brain-washed Patriots in one family!] And true to his promise, Gavin will be there to stand and exchange salutes with her. (Cheers, applause.)”

“Your charge now is not only to protect our country, but to do what is right and just [as I see it]. As your commander in chief, I know you will [do whatever the fuck I command you to do]”

THE END

——————————————————————————————

QUICK THOUGHTS

These people will not protect you, or the Constitution. They follow orders. Any orders. They don’t think. There may be a few Oathkeeper types — like SSS and llpoh — but most will simply “Follow Orders”. They are drones.

“Will You Fire On American Citizens?”

According to some sources that is the new litmus test for military officers to retain their rank. It may be one of the primary reasons regarding the wholesale leadership change in the military…. with about 300 senior command officers fired under Obama …. because they will not indiscriminately fire upon innocent American citizens who refuse to submit to gun confiscation. Confirmation of this litmus test comes from ex-CIA agent, Dr. Jim Garrow …. video below …. a chilling account because it matches up with military personnel accounts of what happened in the Benghazi cover-up. Maybe it’s fake. Then again hundreds of millions of ammo are being bought, the EPA is buying machine guns, government agencies consider AMERICANS to be the real terror threat, FEMA and NSA and other 3-letter abortions run mock “terror drills” with increasing frequency ….. and when you add it all up, shit will hit the fan …. and I wouldn’t count on active military to do a damn thing to stop it.

http://www.youtube.com/watch?feature=player_detailpage&v=zfNbvWvRCX8

CARJACK CITY

DETROIT (AP) — When they pull up to a gas station these days, Detroit drivers are looking beyond the price per gallon at a far more threatening concern: carjackers.

The armed auto thieves have become so common here that parts of the bankrupt metropolis are referred to as “Carjack City,” and many motorists fear getting out of their vehicles even for a few moments to fill a tank.

So gas stations are taking steps to protect customers, and the city has formed a special police team to go after suspects. Convicted carjackers will even get their faces and prison sentences plastered onto billboards.

“You need to catch these people and make a good example of them,” said Mousa Bazzi, who owns a Mobil station in a semi-desolate neighborhood bordering Detroit’s east riverfront. He keeps his business well-lit and continually has two to four employees inside to ensure “there’s always an extra hand or two” in case of trouble.

Authorities blame many of the carjackings, ironically, on improvements in vehicle security. Anti-theft equipment, GPS systems and advanced locks now prevent many vehicles from being driven without a key in the ignition.

That makes it difficult or impossible for thieves to steal parked cars, leading them to target vehicles that are occupied, said Jonathan Parnell, of Detroit’s auto-theft squad.

Also contributing to the thefts is a strong demand for stolen wheels and tires, police said.

Bazzi’s station displays pale-green decals depicting a lighthouse — a sign that his business has joined the city’s anti-carjacking effort. To be part of the program, stations must have security cameras, good lighting, be open 24 hours and have clerks willing to help motorists and provide a phone for emergency calls.

“There is a waiting list,” Sgt. Michael Woody said. “We have so many gas stations that want to become a lighthouse. You get better protection with that big sticker in the window that tells criminals there is proper equipment that will help police investigate these crimes.”

WARFARE STATE WASTE

I rail about the welfare state every day. But the warfare state is just as bad. The government just spent 3 months worth of foodstamps for 47 million people on 10 submarines we absolutely do not need. But the neo-cons have the balls to say we are gutting the military. Maybe some of these billions could be better spent taking care of the injured and dying veterans from the previous wars of choice waged on behalf of the corporate interests. In case you were wondering, this is what Eisenhower was talking about in his military industrial complex speech.

Guest Post by David Stockman

Pouring Keynesian Waste Into Davy Jones’ Locker: Yesterday’s $18 Billion “Upside Surprise”

The algos were raging yesterday morning because April durable goods orders were up by an unexpected 0.8%. Well, yes they were: The US Navy inked a gigantic $18 billion order for 10 new nuclear-powered attack submarines during the month. Consequently, the actual 0.8% decline in industrial orders was transformed into a swell “upside” surprise.

U.S. Navy

U.S. Navy placed a record order in April for killer subs.

But folks, the US Warfare State doesn’t need no more stinking nuclear attack submarines. It already has more than 70 in service, and several more beyond yesterday’s huge order were already in the pipeline.

The reason we don’t need them— beyond the vast redundancy in firepower already extant— is that attack submarines have one primary mission. Namely, to kill nuclear-powered submarines carrying the ICBMs of hostile powers who may have them aimed at US cities.

Here’s the deal. China has just three ICBM capable submarines which have a range under 5,000 miles and which have never been deployed in the blue water; and Russia’s rusting legacy fleet of 10 subs left over from the cold war (that would be the one which ended a quarter century ago) is basically mothballed in port.

During the most recent year, the Russian Navy’s operating tempo was so anemic as to amount to one SSBN submarine on the water at any given time. So even though they theoretically have 160 submarine launched ballistic missiles on their 10 ships compared to 656 for the US, 90% of Russia’s SLBMs could never be launched.

Stated differently, during the peak of the cold-war in 1983, the Soviet Navy conducted 105 patrols compared to 5 in 2012. Yet back then we have far fewer attack subs on the water and what we had were far less lethal than today’s US fleet. Stated differently, the 70 attack subs we already have are advanced technology killers purchased at the peak of the Reagan build-up— and at a time after the current Russian fleet of aging SSBNs were already on the water!

Since the strategic nuclear stand-off ended decades ago, the attack submarine fleet has been given an additional mission to serve as a deterrent against surface ships and especially aircraft carrier battle groups of hostile industrial powers. Needless to say, China has one re-conditioned nuclear aircraft carrier it bought second-hand from the Ukraine! And Russia has one, and yes, it too patrols the languid waters of its homeport.

So the 10 new attack submarine order announced yesterday is just mindless waste. The order amounts to a preposterous exercise in military Keynesianism that adds nothing to the security and safety of the American people, but will result in the drastic waste of fiscal resources in a nation that is already drifting rapidly toward insolvency.

This modern day exercises in sub-sea pyramid building, however, does smoke out the abysmal economic ignorance of the so-called financial press. The writer of the story below, one Jeffry Bartash, had no trouble with the idea that pouring steel and electronics into Davy Jones’ locker was a sign that the American economy is coming back to life.

By Jeffry Bartash at Market Watch

U.S. nuclear subs surfaced in a big way in the April durable-goods report. A record Navy construction contract powered a 0.8% gain in durable-goods orders last month when Wall Street was actually expecting a 0.8% drop.

In April, the Navy inked a $17.6 billion contract for 10 nuclear-powered attack submarines. Contractors General Dynamics Electric Boat and Huntington Ingalls Newport News Shipbuilding will handle construction. The deal could reach as high as $17.8 billion under certain conditions.

The huge contract led to a 39% increase in defense orders in April, using seasonally adjusted numbers. Orders for defense capital goods rose to $12.89 billion from $9.3 billion in March and $7.8 billion in February.

Of course, the subs won’t all be built right away, so the benefits to the economy will be spread out over the next five years.

The boom in demand for military equipment spruced up an otherwise drab durable-goods report. Booking for big-ticket U.S. goods actually fell in April if defense is excluded. Orders often fall in the first month of a new quarter….

Click here for complete article:

http://blogs.marketwatch.com/capitolreport/2014/05/27/this-one-order-made-durable-goods-bookings-grow-in-april/

– Jeffry Bartash