Things That Make You Go Hmmm: The Underpants Gnomes

Things That Make You Go Hmmm: The Underpants Gnomes

By Grant Williams

 

This week’s TTMYGH will be a little shorter than usual (“Thank heavens!” I hear you cry) owing to my presence at the Strategic Investment Conference 2014 this past week and the travel time to and fro.

Due to the hectic schedule and the fact that there were so many interesting people in attendance, I had planned to spend my week dragging as much knowledge as I possibly could out of those who made the trip to San Diego rather than committing finger to keyboard; but a chance encounter with a delightful young lady initiated an engaging conversation which, in turn, led to my discovery of the Underpants Gnomes.

Those of you who have ever attended an event such as the SIC know full well how such conversations arise. Those of you who haven’t will likely think I’ve taken another step towards the light (and will wonder just what sort of a dialogue we engaged in), but allow me to elaborate.

I will spare the name of the young lady in question to protect her modesty, but if she happens to be reading this back home in Bath, my thanks for the inspiration — even though I find myself awake at 3 AM rather worriedly thinking about underpants.

On December 16th, 1998, Comedy Central broadcast the seventeenth episode of the second season of South Park. In the episode, written by Trey Parker and Matt Stone, Harbucks (a franchise coffee shop chain with no similarity to any real-life company) planned to enter the South Park coffee market, thus threatening the local business owners.

Through a rather convoluted series of developments, the boys (Stan, Kenny, Kyle, and Cartman), are tasked with writing a school report on the threat that corporatism poses to small businesses. The report mobilizes the South Park community to take action against the insurgent corporate behemoth.

In true South Park style, what starts off as an attack on the culture of greed surrounding corporate interests ends up taking a pot-shot at the work ethic and merchandise quality of the small business owner.

Somewhat surprisingly, the TV critic (and sometime Austrian economist) Paul Cantor referred to this particular episode as “the most fully developed defense of capitalism ever” — which simultaneously speaks volumes regarding both the South Park writers and all those who have at one point or another defended capitalism.

(If you’d like to watch the full episode, you can find it HERE. Ain’t the internet grand?)

So… those Underpants Gnomes.

In the middle of the episode, Stan, Kyle, Kenny, and Cartman finally manage to lay eyes upon a pack of mysterious gnomes and ask them if they know anything about business. The gnomes assure the boys that they do and lead them into the cave where the gnomes stash their contraband underpants.

Once there, the gnomes lay out their business plan… a thing of beauty and simplicity that has been emulated by many companies in the age of the Internet of Things (a phrase whose constant occurrence in recent years has never failed to get my hackles up, but one that has, amazingly, been in existence since the early 1990s).

Surprisingly enough, many investors seem to have bought into things that even Eric Cartman could see through. Ah well, there’s no helping some folks.

Behold, the Underpants Gnomes’ business plan in all its majesty:

Now, in the real world, during the first internet boom (which peaked the year after this episode of South Park aired), the business model of the Underpants Gnomes was commonplace, as scores of companies flooded the marketplace, sustained purely by the promise of future profits that would somehow magically appear.

It was the corporate embodiment of George Costanza’s “yada, yada, yada”: “First we build a company… yada, yada, yada… we make billions.”

Of course, most of these companies went the way of the dodo; but remarkably, a mere 14 years after the bursting of the original internet bubble, there are signs of what Yogi Berra so beautifully referred to as “déjà vu all over again” — signs which some real heavyweight financial minds have recently highlighted:

(Seattle Times): Venture capital rising to levels not seen since 2001. Companies with no profits going public. Billions of dollars being paid for startups.

These and other signs that the tech boom may be taking an irrational turn are leading some notable investors to utter the dreaded word “bubble,” waking up the ghosts of an era many in Silicon Valley would prefer to keep buried.

Has Silicon Valley once again lost its collective mind?

Hedge-fund manager David Einhorn thinks so.

“There is a clear consensus that we are witnessing our second tech bubble in 15 years,” he warned in a note to his clients in late April. “What is uncertain is how much further the bubble can expand, and what might pop it.”

Of course, as we saw in 1998/9, there are plenty of people who believe in fairy tales, and they are happy to explain why THIS time is different:

Venture capitalists and entrepreneurs insist the Silicon Valley tech economy is not in bubble territory. Yes, they misjudged just how fast the Internet would change the world a decade ago and let things get a little bit out of hand.

But this time, they say, the revolution of mobile and cloud services justifies big, bold bets. And most of the companies going public are profitable, with real businesses that are transforming the way we live.

To some tech insiders, the region’s economy is in a “Goldilocks” moment. Not too hot. Not too cold. Enough of a boom to be just right.

Seriously?… Goldilocks? Again with that?

As you can see from the chart above, the Social Media ETF (SOCL) has fallen in almost a straight line since it peaked on Feb 19, 2014. Quite coincidentally, that was the day when $19 billion was paid for Whatsapp’s 450 million users.

The day that rationality returns to investing in technology stocks will be the day that we see some high-flyers (which had previously been given a pass on their poor performance because the promise of a bright tomorrow was just SO compelling) fall to earth in a hurry.

However, so as not to call out any specific companies, I am going to take the South Park approach and lay out a hypothetical fable about one such giant, high-flying corporate darling which has been embraced for its willingness to follow the Underpants Gnomes’ ingenious business plan.

The company has designs on becoming absolutely essential to all of mankind; and at that point, it has promised, it will figure out how to make a profit from the massive turnover that comes with ubiquity.

Let’s call this company… Spamazon.

(I should point out that Spamazon is an entirely fictional company. I offer no recommendation whatsoever, implied or otherwise, to either buy or sell the imaginary shares of this completely made-up entity.)

Spamazon was founded in 1994 in the mythical town of Beattle by an ex-investment banker and Harvard graduate named Jim Beeswax, a man with a passion and talent for engineering who had seen the internet wave swelling and wanted to ride it to the shore, where riches and fame awaited.

Click here to continue reading this article from Things That Make You Go Hmmm… – a free weekly newsletter by Grant Williams, a highly respected financial expert and current portfolio and strategy advisor at Vulpes Investment Management in Singapore.

PAY FOR PERFORMANCE

The median CEO pay is now over $10 million per year, with banking and media oligarchs “earning” $20 to $40 million per year. CEOs are treated like rock stars. The same asshole banker CEOs who destroyed the global economy in 2008 are now rewarded with tens of millions because the Fed gives them billions at 0% and assures them they can take any risk without worrying about future losses. They rig the stock market and act like they deserve every penny of their compensation.

Take a long hard look at the chart below. At the peak of the stock market in 2007/2008, these bozos were buying back their own stock at an all-time high of $120 billion per quarter. So they were buying high. When the market was reaching bottom in early 2009 when stock prices were 50% lower, they were buying back 80% less of their stock. Isn’t the idea to buy low and sell high? These nitwit CEOs are nothing more than lemmings. The market is now at all-time highs again and these overpaid boneheaded idiots have obliterated their previous buyback high by buying back $160 billion of their own stock.

I’m sure this will be a fantastic investment. Someone should give them a raise. Of course, most of their compensation is now in stock and the buybacks boost EPS. Why would they spend money expanding their business and investing in people and capital? That’s old school thinking. These highly educated CEOs make 257 times the average worker, so they must know better. Right?

And so it goes.

 

According to a new study by the AP, the median pay package for a CEO rose above eight figures for the first time last year. The head of a typical large public company earned a record $10.5 million, an increase of 8.8 percent from $9.6 million in 2012, according to an Associated Press/Equilar pay study.

The study details:

  • Last year was the fourth straight that CEO compensation rose following a decline during the Great Recession. The median CEO pay package climbed more than 50 percent over that stretch. A chief executive now makes about 257 times the average worker’s salary, up sharply from 181 times in 2009.
  • CEO comp has risen 50% over the past five years, and was up 8.8% in 2013. By comparison, the income of the US middle class has declined over this time period.
  • The average CEO now make 257 times the average worker’s salary, up 41% since 2009.
  • The industry with the biggest pay bump was banking. The median pay of a Wall Street CEO rose by 22 percent last year, on top of a 22 percent increase the year before. BlackRock chief Larry Fink made the most, $22.9 million. Kenneth Chenault of American Express ranked second with earnings of $21.7 million.
  • Media industry CEOs were, once again, paid handsomely. Viacom’s Philippe Dauman made $37.2 million while Walt Disney’s Robert Iger made $34.3 million. Time Warner CEO Jeffrey Bewkes earned $32.5 million.

 

VERY MEAN REVERSION

“Accordingly, I am changing my guidance. For those investors who trust our analysis and discipline, no change of course is encouraged. But for those who find our work to be a constant source of irritation to be regarded with open disdain, I am retracting all of it herewith – for you alone mind you – and I leave you free to buy with both hands to whatever extent you are inclined. Not that I encourage it really – that would be bad Karma – but someone is going to have to hold equities at these prices. It would best be those who are fully aware of our concerns and prefer to reject them. So the more you dislike my work, and particularly if you are nasty about it, I have no objection to you accumulating – perhaps on margin – as much stock from other investors as possible.”

John Hussman

You Can’t Shoot Fish in a Barrel Without Ammunition

You Can’t Shoot Fish in a Barrel Without Ammunition

By Dan Steinhart, Managing Editor, The Casey Report

FOMO.

I heard this acronym on a podcast last week. Having no clue what it meant, I consulted Google.

Turns out it stands for “Fear of Missing Out.” Kids use it to describe their anxiety about missing a social event that all of their friends are attending.

It struck me that investors experience FOMO too. And it usually leads to bad decisions.

From Prudent to FOMO

In the comfort of your home office, investing rationally is pretty easy. You think a bull market might be emerging, so you invest in the S&P 500.

But you’re not stupid. No one really knows where the stock market is headed, so you keep a healthy allocation of cash on the side to deploy the next time stocks trade at bargain prices. A prudent, rational plan.

But leave the house and things start to change. You notice that others seem to be making more money than you. First it’s the “smart money” raking in the dough—those who had the foresight and fortitude to buy during the last panic, when everyone else was retreating. You’re OK with that. Investing is their full-time job. You can’t expect to compete with them.

But as the bull market charges higher, the caliber of people making more money than you sinks lower. The mailman starts giving you stock tips. And your gardener’s brand-new Mustang, parked in your driveway just behind your sensible, 2011 Toyota Corolla, starts to irritate you.

Your brother-in-law is the last straw. He thinks he’s so smart, but he’s really just lucky to somehow always be in the right place at the right time. I mean, just last month you had to pick him up from a NASCAR tailgate after security kicked him out for lewd behavior—and now he’s taking the family to Europe with his stock market winnings?

If that guy can make $30,000 in the market in six months, you should be a millionaire.

Now you feel like a sucker for holding so much cash. Why earn a pitiful 0.5% interest when you could be making… hang on, how much did the S&P 500 gain last year? 29.6%?

Some quick extrapolation shows that if you invest all of your cash right now, you can retire by 2023. Factor in a couple family trips to Europe, and we’ll call it 2024 to be safe.

Cash Is Trash… Until It’s King

Such is the (slightly exaggerated) psychology of a bull market. FOMO is a powerful motivator and causes smart investors to do stupid things, like go all-in at the worst possible moment. Which is no small concern, since it undermines one of the most powerful investment strategies: keeping liquid cash in reserve to invest during market panics.

Take the roaring ‘20s as a long-ago but pertinent example. The surging stock market of that era caused a whole lot of FOMO. Seeing their friends get rich, people who had never invested before piled into stocks.

Of course, we know how that ended.

But there’s a fascinating angle that you may not have given much thought. I hadn’t until yesterday, when I finished reading The Great Depression: A Diary. It’s a firsthand, anecdotal account written by attorney Benjamin Roth.

Roth emphasized that during the Great Depression, everyone knew financial assets were great bargains. The problem was hardly anyone had cash to take advantage of them.

Here are a few quotes from the book:

August 1931: I see now how very important it is for the professional man to build up a surplus in normal times. A surplus capital of $2,500 wisely invested during the depression might have meant financial security for the rest of his life. Without it he is at the mercy of the economic winds.

December 1931: It is generally believed that good stocks and bonds can now be bought at very attractive prices. The difficulty is that nobody has the cash to buy.

September 1932: I believe it can be truly said that the man who has money during this depression to invest in the highest grade investment stocks and can hold on for 2 or 3 years will be the rich man of 1935.

June 1933: I am afraid the opportunity to buy a fortune in stocks at about 10¢ on the dollar is past and so far I have been unable to take advantage of it.

July 1933: Again and again during this depression it is driven home to me that opportunity is a stern goddess who passes up those who are unprepared with liquid capital.

May 1937: The greatest chance in a lifetime to build a fortune has gone and will probably not come again soon. Very few people had any surplus to invest—it was a matter of earning enough to buy the necessaries of life.

In short, by succumbing to FOMO and investing all your cash, you might be giving up the opportunity to make a literal fortune. You can’t shoot fish in a barrel without ammunition.

Of course, the parallels from the Great Depression to present-day crises aren’t exact. The US was on the gold standard back then, meaning the Fed couldn’t conjure money out of thin air to reflate stock prices. Such a nationwide shortage of cash is unthinkable today, as Yellen & Friends would create however many dollars necessary to prevent stocks from plummeting 90%, as they did during the Great Depression.

That’s exactly what happened during the 2008 financial crisis, as you can see below. The Fed injected liquidity, and stocks rebounded rapidly. Compared to the Great Depression, the stock market crash of 2008 was short and sweet:

What does that mean for modern investors?

When the next crisis comes—and it will—there will be bargains. But because of the Fed’s quick trigger, investors will have to act decisively to get a piece of them.

What’s more, now that the US government has demonstrated beyond the shadow of a doubt that it will prop up the economy, bargains should dissipate even quicker next time around. After all, the hardest part of buying stocks in a crisis is overcoming fear. But that fear isn’t much of a detriment when Uncle Sam is standing by with his hand on the lever of the money-printing machine, ready to rescue the market.

Crises can creep up on you faster than you think. You may never know what hit you–unless you knew what to look for ahead of time. Watch Meltdown America, the eye-opening 30-minute documentary on how to recognize (and survive) an economic crisis—with top experts including Sovereign Society Director Jeff Opdyke, investing legend Doug Casey, and Canadian National Security Council member Dr. Andre Gerolymatos.

Be prepared… it can (and will) happen here. Click here to watch Meltdown America now.

WHITE PRIVILEGE: HARD WORK AND RESPONSIBILITY

A an excellent essay of the evils of the liberal progressive agenda.

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YEAH! IT’S CALLED HARD WORK AND RESPONSIBILITY!

HEY LIBERALS! WHITE MEN ARE NOT THE CAUSE OF YOUR PROBLEMS! YOU ARE!

It’s very popular in liberal circles (universities, mainstream media, unemployment lines) to blame every little bad thing in the world on white men. In the past few years, liberal minds (oxymoron alert) have moved from blaming white males for being racist because…well, because…to exposing our ‘white privilege’ that accounts for any success we enjoy and keeps the leftists down.

White males are also to blame any time an effeminate, drugged out leftist like Elliot Rodger goes on a shooting rampage after being raised on a steady diet of liberal, PC claptrap ideology. White males are blamed for the deaths in any shooting by a leftist because we support the 2nd Amendment. Note: When I say ‘white males,’ I refer to conservative white men. Liberal males identify more closely with liberal women and do not qualify for nor deserve the odious nomenclature of ‘white men.

In regard to guns, white males realize the some people are evil and will kill for stupid reasons like the effeminate Rodger kid in Santa Barbara who murdered because he couldn’t reel in the biscuit with any young lovelies. Evil white men call for training and arming good people to bring down the bad guy once the lead starts flying. Conversely, the liberal answer is to create “Gun Free Zones” which, as we have sadly seen time and time again, are not gun free zones.

Since Columbine, every mass shooter has been of the liberal ilk. Not a conservative NRA member among them. The parents of these murderous monsters were liberals, too. But in every instance, white males and guns have been blamed on the murders committed by liberals. The father of one of the Elliot Rodger victims in California immediately blamed the NRA for his daughter’s death! If the liberal idiots who run California would allow more honest, law-abiding people to carry guns, that man’s daughter may be alive today. But it’s much easier to blame the white male-run NRA as the reason his daughter was murdered. It’s not true but it’s easier for liberals for some reason. But when have liberals ever been interested in truth? They have an agenda.

Think about it. The NRA calls for more honest people to be armed to respond to armed bad guys. Liberals call for Gun Free Zones. A liberal whacked out kid goes nuts and murders innocents who have no way to protect themselves and the tragedy is the responsibility of the NRA. And/or white males. Right.

A liberal, feminist Washington Post critic blamed white male Hollywood for the recent California murders. Of course. She said:

“For generations, mass entertainment has been overwhelmingly controlled by white men, whose escapist fantasies so often revolve around vigilantism and sexual wish-fulfillment (often, if not always, featuring a steady through-line of casual misogyny).”

Would this be the same liberal-dominated Hollywood that casts every white male as either a wimp, homosexual, or idiot? It’s common in liberal-run pop culture to make the white male the butt of the jokes. Television shows and commercials are filled with stupid, bumbling white men who can provide a nice home but can’t light a gas grill without blowing it up. Smart wives and stupid, effeminate men, and liberals blame conservative white males when a politically correct, stupid, effeminate kid raised on stupid, liberal ideology goes on a murderous rampage.

Race baiters like Toure, Al Sharpton, Jesse Jackson and the entire cast of MSNBC have been running hard with the white privilege charge for a while now. This week, Toure (which sounds like a Buick model) even accused Jewish Holocaust victims as benefiting from white privilege. I’m sure all of the 6 million Jews murdered by the socialist Hitler would have gladly foregone their white privilege in the gas chambers.

The avoidance of personal responsibility knows no bounds among liberals. It is even more prevalent with the ‘professional black’ class. ‘Professional black people’ are those who make their living by being black either in academia and/or television propaganda news. These people gain their livelihoods by placing no responsibility on the poor decisions and violent actions of black people for whom they purport to speak. Every violent crime, every unwed teen mother, every flash mob, every instance of Knockout Game, etc is directly attributable to evil white males according to ‘professional black people. Again, right.

While sentient beings who utilize reason and logic find such politically correct pretzel logic laughable, nearly every liberal in America believes this line of thought or pretends to. Those that blame their failures on white privilege or white men are nothing more than dishonest moral and intellectual cowards.

Here’s the deal. White males aren’t responsible for the bad actions or negative plight of anyone except themselves. We’re quite tired of being blamed for the poor decisions of others. White males didn’t invent the Bloods or Crips, Knockout Game, or any other bad or violent aspect we often see in the black community. We don’t raise our sons to believe they deserve a trophy when they finish dead last. We don’t teach our boys to be metrosexual wimps who kill people because they can’t get a date. Conservative white males raise our sons to be strong, responsible men who respect women and we raise our girls to be honorable and responsible women. We invented the computer, television, space travel, and fought world wars to conquer evil. Sure, some liberal white males invented destructive political programs such as welfare, Affirmative Action, food stamps, etc but they had political personal gain as their agenda. White men also ended slavery at great cost and bloodshed in America. Yet, we still see blacks in Africa who have no problem enslaving people of their own color. We should note that black slaveholders receive no consternation from white liberals or professional black people.

White men don’t have nor seek white privilege. But we don’t believe in black privilege either. We believe everyone should have an equal chance to succeed in America to the best of their ability. And that is a privilege in America enjoyed by all if they are willing to pay the price. We have spent trillions of dollars over the past 50 years to help others achieve, without much success. White males are not holding a collective gun to the heads of other racial groups or women. We would prefer to see others succeed by what we have found to be tried and true principles. Any so-called ‘privilege’ exists for the vast majority of us because of education, hard work, sacrifice, planning, self-responsibility, generosity, and decency. In short, our success in life is directly attributable to making good life decisions. We recommend it for everyone.

Think about how different the life of a young, unwed teen mother would be if she graduated high school, took advantage of the numerous college options available to her, received a college diploma in a marketable skill, and got a good job instead of having to raise a child by herself with an absentee father. With an unskilled and uneducated mother dependent on welfare and food stamps, what future will her child most likely have? We sadly see it every week in violent black teen attacks on innocents. Here’s only one example over Memorial Day in Florida. You needn’t read the story to know who was creating the havoc.

We also see terrible results in liberal households where parents either ignore their children or allow them to run wild with no discipline. Big government caused by liberal politics now requires that both parents work (if they choose to work anymore). One parent works to pay the bills, the other to pay the taxes. Who is home to oversee their children in the formative years? No one. Child care, video games and/or stupid television shows raise children in America these days with the poison of liberal ideology. And the results are disgusting! Sadly, every few months, another confused kid who had little structure or standards in their life gets a gun or knife and starts killing. Not to worry, white males who never advocated or supported any of this failed liberal ideology, get the blame.

We will never hear the end of this white male blame as long as there is money to be made or political gain from blaming white men for the world’s problems. But the truth is white men are not responsible for the failures of anyone except themselves. The law of consequences does not recognize race nor gender. It only recognizes stupid decisions and actions. I taught my children that stupid decisions generally result in bad results. I taught my boys to never find themselves saying to their friends “hey, watch this” before jumping off a roof into a swimming pool or riding a wheelie on a motorcycle at 90 mph down the highway. These lessons are common sense. But when did liberals ever utilize common sense? They have an agenda.

This is our message to you politically correct liberals. Conservative white men have no white privilege other than the privilege we create based on our actions. We also have no white guilt. We will lend a hand to anyone of any color who seeks to better themselves. We are sick of government handouts given at our expense. We are tired of being blamed for the consequences of your massively failed liberal ideology. It is an ideology of failure, greed, envy, and laziness. And it fails every time.

Want some of my white privilege? Then get your lazy ass out of bed and do your job the best you can, raise your kids to be responsible, law-abiding adults, and seek to leave this country better than you found it. Don’t blame your failures on others. Seek to better yourself and become a responsible, self-reliant adult. You’ll find success and happiness versus the slothful, bitter life of dependency. Cast off the shackles of political correct victim-hood, close your ears to race baiters and lying white liberals who seek to keep you under their control. You can do it if you only have the guts and make the effort! And we white men will welcome you as our friends.

Read more at http://angrywhitedude.com/2014/05/hey-liberals-white-men-cause-problems/#x8CjL60uvPCyFsua.99

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“In all things give thanks; for this is the will of God”

Doom porn honestly depresses the living shit out of me. Some days — and they are becoming more frequent — I wonder to myself why the fuck I should even get out of bed.

The religious discussion in the “Scientific Method” thread stirred memories of Bible verses that meant much to me in days gone by … and still do to some extent.

One of those passages comes from 1 Thessalonians, Chapter 5.

“Live in peace with each other. And we urge you, brothers and sisters, warn those who are idle and disruptive, encourage the disheartened, help the weak, be patient with everyone. Make sure that nobody pays back wrong for wrong, but always strive to do what is good for each other and for everyone else. Rejoice always, pray continually, give thanks in all circumstances; for this is God’s will for you in Christ Jesus.”

Words to live by. And with that, I give you this inspirational video from my pal, Stumpy.

ARE YOU ON THE LIST?

Via InfoWars

Official Bilderberg 2014 Membership List Released

Globalist confab reveals this year’s list of participants, set to attend in Copenhagen, Denmark, from May 29 – June 1, 2014
Official Bilderberg 2014 Membership List Released

by Infowars.com | May 27, 2014


Current list of Participants – Status 26 May 2014

Chairman
FRA Castries, Henri de Chairman and CEO, AXA Group

DEU Achleitner, Paul M. Chairman of the Supervisory Board, Deutsche Bank AG
DEU Ackermann, Josef Former CEO, Deutsche Bank AG
GBR Agius, Marcus Non-Executive Chairman, PA Consulting Group
FIN Alahuhta, Matti Member of the Board, KONE; Chairman, Aalto University Foundation
GBR Alexander, Helen Chairman, UBM plc
USA Alexander, Keith B. Former Commander, U.S. Cyber Command; Former Director, National Security Agency
USA Altman, Roger C. Executive Chairman, Evercore
FIN Apunen, Matti Director, Finnish Business and Policy Forum EVA
DEU Asmussen, Jörg State Secretary of Labour and Social Affairs
HUN Bajnai, Gordon Former Prime Minister; Party Leader, Together 2014
GBR Balls, Edward M. Shadow Chancellor of the Exchequer
PRT Balsemão, Francisco Pinto Chairman, Impresa SGPS
FRA Baroin, François Member of Parliament (UMP); Mayor of Troyes
FRA Baverez, Nicolas Partner, Gibson, Dunn & Crutcher LLP
USA Berggruen, Nicolas Chairman, Berggruen Institute on Governance
ITA Bernabè, Franco Chairman, FB Group SRL
DNK Besenbacher, Flemming Chairman, The Carlsberg Group
NLD Beurden, Ben van CEO, Royal Dutch Shell plc
SWE Bildt, Carl Minister for Foreign Affairs
NOR Brandtzæg, Svein Richard President and CEO, Norsk Hydro ASA
INT Breedlove, Philip M. Supreme Allied Commander Europe
AUT Bronner, Oscar Publisher, Der STANDARD Verlagsgesellschaft m.b.H.
SWE Buskhe, Håkan President and CEO, Saab AB
TUR Çandar, Cengiz Senior Columnist, Al Monitor and Radikal
ESP Cebrián, Juan Luis Executive Chairman, Grupo PRISA
FRA Chalendar, Pierre-André de Chairman and CEO, Saint-Gobain
CAN Clark, W. Edmund Group President and CEO, TD Bank Group
INT Coeuré, Benoît Member of the Executive Board, European Central Bank
IRL Coveney, Simon Minister for Agriculture, Food and the Marine
GBR Cowper-Coles, Sherard Senior Adviser to the Group Chairman and Group CEO, HSBC Holdings plc
BEL Davignon, Etienne Minister of State
USA Donilon, Thomas E. Senior Partner, O’Melveny and Myers; Former U.S. National Security Advisor
DEU Döpfner, Mathias CEO, Axel Springer SE
GBR Dudley, Robert Group Chief Executive, BP plc
FIN Ehrnrooth, Henrik Chairman, Caverion Corporation, Otava and Pöyry PLC
ITA Elkann, John Chairman, Fiat S.p.A.
DEU Enders, Thomas CEO, Airbus Group
DNK Federspiel, Ulrik Executive Vice President, Haldor Topsøe A/S
USA Feldstein, Martin S. Professor of Economics, Harvard University; President Emeritus, NBER
CAN Ferguson, Brian President and CEO, Cenovus Energy Inc.
GBR Flint, Douglas J. Group Chairman, HSBC Holdings plc
ESP García-Margallo, José Manuel Minister of Foreign Affairs and Cooperation
USA Gfoeller, Michael Independent Consultant
TUR Göle, Nilüfer Professor of Sociology, École des Hautes Études en Sciences Sociales
USA Greenberg, Evan G. Chairman and CEO, ACE Group
GBR Greening, Justine Secretary of State for International Development
NLD Halberstadt, Victor Professor of Economics, Leiden University
USA Hockfield, Susan President Emerita, Massachusetts Institute of Technology
NOR Høegh, Leif O. Chairman, Höegh Autoliners AS
NOR Høegh, Westye Senior Advisor, Höegh Autoliners AS
USA Hoffman, Reid Co-Founder and Executive Chairman, LinkedIn
CHN Huang, Yiping Professor of Economics, National School of Development, Peking University
USA Jackson, Shirley Ann President, Rensselaer Polytechnic Institute
USA Jacobs, Kenneth M. Chairman and CEO, Lazard
USA Johnson, James A. Chairman, Johnson Capital Partners
USA Karp, Alex CEO, Palantir Technologies
USA Katz, Bruce J. Vice President and Co-Director, Metropolitan Policy Program, The Brookings Institution
CAN Kenney, Jason T. Minister of Employment and Social Development
GBR Kerr, John Deputy Chairman, Scottish Power
USA Kissinger, Henry A. Chairman, Kissinger Associates, Inc.
USA Kleinfeld, Klaus Chairman and CEO, Alcoa
TUR Koç, Mustafa Chairman, Koç Holding A.S.
DNK Kragh, Steffen President and CEO, Egmont
USA Kravis, Henry R. Co-Chairman and Co-CEO, Kohlberg Kravis Roberts & Co.
USA Kravis, Marie-Josée Senior Fellow and Vice Chair, Hudson Institute
CHE Kudelski, André Chairman and CEO, Kudelski Group
INT Lagarde, Christine Managing Director, International Monetary Fund
BEL Leysen, Thomas Chairman of the Board of Directors, KBC Group
USA Li, Cheng Director, John L.Thornton China Center,The Brookings Institution
SWE Lifvendahl, Tove Political Editor in Chief, Svenska Dagbladet
CHN Liu, He Minister, Office of the Central Leading Group on Financial and Economic Affairs
PRT Macedo, Paulo Minister of Health
FRA Macron, Emmanuel Deputy Secretary General of the Presidency
ITA Maggioni, Monica Editor-in-Chief, Rainews24, RAI TV
GBR Mandelson, Peter Chairman, Global Counsel LLP
USA McAfee, Andrew Principal Research Scientist, Massachusetts Institute of Technology
PRT Medeiros, Inês de Member of Parliament, Socialist Party
GBR Micklethwait, John Editor-in-Chief, The Economist
GRC Mitsotaki, Alexandra Chair, ActionAid Hellas
ITA Monti, Mario Senator-for-life; President, Bocconi University
USA Mundie, Craig J. Senior Advisor to the CEO, Microsoft Corporation
CAN Munroe-Blum, Heather Professor of Medicine and Principal (President) Emerita, McGill University
USA Murray, Charles A. W.H. Brady Scholar, American Enterprise Institute for Public Policy Research
NLD Netherlands, H.R.H. Princess Beatrix of the
ESP Nin Génova, Juan María Deputy Chairman and CEO, CaixaBank
FRA Nougayrède, Natalie Director and Executive Editor, Le Monde
DNK Olesen, Søren-Peter Professor; Member of the Board of Directors, The Carlsberg Foundation
FIN Ollila, Jorma Chairman, Royal Dutch Shell, plc; Chairman, Outokumpu Plc
TUR Oran, Umut Deputy Chairman, Republican People’s Party (CHP)
GBR Osborne, George Chancellor of the Exchequer
FRA Pellerin, Fleur State Secretary for Foreign Trade
USA Perle, Richard N. Resident Fellow, American Enterprise Institute
USA Petraeus, David H. Chairman, KKR Global Institute
CAN Poloz, Stephen S. Governor, Bank of Canada
INT Rasmussen, Anders Fogh Secretary General, NATO
DNK Rasmussen, Jørgen Huno Chairman of the Board of Trustees, The Lundbeck Foundation
INT Reding, Viviane Vice President and Commissioner for Justice, Fundamental Rights and Citizenship, European Commission
USA Reed, Kasim Mayor of Atlanta
CAN Reisman, Heather M. Chair and CEO, Indigo Books & Music Inc.
NOR Reiten, Eivind Chairman, Klaveness Marine Holding AS
DEU Röttgen, Norbert Chairman, Foreign Affairs Committee, German Bundestag
USA Rubin, Robert E. Co-Chair, Council on Foreign Relations; Former Secretary of the Treasury
USA Rumer, Eugene Senior Associate and Director, Russia and Eurasia Program, Carnegie Endowment for International Peace
NOR Rynning-Tønnesen, Christian President and CEO, Statkraft AS
NLD Samsom, Diederik M. Parliamentary Leader PvdA (Labour Party)
GBR Sawers, John Chief, Secret Intelligence Service
NLD Scheffer, Paul J. Author; Professor of European Studies, Tilburg University
NLD Schippers, Edith Minister of Health, Welfare and Sport
USA Schmidt, Eric E. Executive Chairman, Google Inc.
AUT Scholten, Rudolf CEO, Oesterreichische Kontrollbank AG
USA Shih, Clara CEO and Founder, Hearsay Social
FIN Siilasmaa, Risto K. Chairman of the Board of Directors and Interim CEO, Nokia Corporation
ESP Spain, H.M. the Queen of
USA Spence, A. Michael Professor of Economics, New York University
FIN Stadigh, Kari President and CEO, Sampo plc
USA Summers, Lawrence H. Charles W. Eliot University Professor, Harvard University
IRL Sutherland, Peter D. Chairman, Goldman Sachs International; UN Special Representative for Migration
SWE Svanberg, Carl-Henric Chairman, Volvo AB and BP plc
TUR Taftalı, A. Ümit Member of the Board, Suna and Inan Kiraç Foundation
USA Thiel, Peter A. President, Thiel Capital
DNK Topsøe, Henrik Chairman, Haldor Topsøe A/S
GRC Tsoukalis, Loukas President, Hellenic Foundation for European and Foreign Policy
NOR Ulltveit-Moe, Jens Founder and CEO, Umoe AS
INT Üzümcü, Ahmet Director-General, Organisation for the Prohibition of Chemical Weapons
CHE Vasella, Daniel L. Honorary Chairman, Novartis International
FIN Wahlroos, Björn Chairman, Sampo plc
SWE Wallenberg, Jacob Chairman, Investor AB
SWE Wallenberg, Marcus Chairman of the Board of Directors, Skandinaviska Enskilda Banken AB
USA Warsh, Kevin M. Distinguished Visiting Fellow and Lecturer, Stanford University
GBR Wolf, Martin H. Chief Economics Commentator, The Financial Times
USA Wolfensohn, James D. Chairman and CEO, Wolfensohn and Company
NLD Zalm, Gerrit Chairman of the Managing Board, ABN-AMRO Bank N.V.
GRC Zanias, George Chairman of the Board, National Bank of Greece
USA Zoellick, Robert B. Chairman, Board of International Advisors, The Goldman Sachs Group

AUT Austria
BEL Belgium
CAN Canada
CHE Switzerland
CHN China
DEU Germany
DNK Denmark
ESP Spain
FIN Finland
FRA France
GBR Great Britain
GRC Greece
HUN Hungary
INT International
IRL Ireland
ITA Italy
NLD Netherlands
NOR Norway
PRT Portugal
SWE Sweden
TUR Turkey
USA United States of America

***

Infowars analysis note: The official list ends above. What’s important to understand is that there are always members who will be attending, but who don’t want to be included in the list, due to laws such as 18 U.S. Code § 953, otherwise known as the Logan Act, which makes it a felony offense – punishable under federal law with imprisonment of up to three years – for any member of federal or state government to meet with members of a foreign government without the express authority and authorization of the president or congress.

Yesterday, Bilderberg put out a press release detailing the official talking points to be addressed at this year’s meeting. From our research, this is not their primary agenda, but usually one put out to appease the media:

Copenhagen, 26 May 2014 – The 62nd Bilderberg meeting is set to take place from 29 May until 1 June 2014 in Copenhagen, Denmark. A total of around 140 participants from 22 countries have confirmed their attendance. As ever, a diverse group of political leaders and experts from industry, finance, academia and the media have been invited. The list of participants is available on www.bilderbergmeetings.org

The key topics for discussion this year include:

• Is the economic recovery sustainable?
• Who will pay for the demographics?
• Does privacy exist?
• How special is the relationship in intelligence sharing?
• Big shifts in technology and jobs
• The future of democracy and the middle class trap
• China’s political and economic outlook
• The new architecture of the Middle East
• Ukraine
• What next for Europe?
• Current events

Founded in 1954, Bilderberg is an annual conference designed to foster dialogue between Europe and North America. Every year, between 120-150 political leaders and experts from industry, finance, academia and the media are invited to take part in the conference. About two thirds of the participants come from Europe and the rest from North America; approximately one third from politics and government and the rest from other fields.

The conference is a forum for informal discussions about major issues facing the world. The meetings are held under the Chatham House Rule, which states that participants are free to use the information received, but neither the identity nor the affiliation of the speaker(s) nor of any other participant may be revealed.

Thanks to the private nature of the conference, the participants are not bound by the conventions of their office or by pre-agreed positions. As such, they can take time to listen, reflect and gather insights.

There is no desired outcome, no resolutions are proposed, no votes are taken, and no policy statements are issued.

***

Below see Paul Joseph Watson’s latest article revealing this year’s agenda from inside sources.

***

Bilderberg Agenda Revealed: Elite Desperate to Rescue Unipolar World

Paul Joseph Watson

The 2014 Bilderberg meeting in Copenhagen, Denmark is taking place amidst a climate of panic for many of the 120 globalists set to attend the secretive confab, with Russia’s intransigence on the crisis in Ukraine and the anti-EU revolution sweeping Europe posing a serious threat to the unipolar world order Bilderberg spent over 60 years helping to build.

Inside sources confirm to Infowars that the elite conference, which will take place from Thursday onwards at the five star Marriott Hotel, will center around how to derail a global political awakening that threatens to hinder Bilderberg’s long standing agenda to centralize power into a one world political federation, a goal set to be advanced with the passage of the Transatlantic Trade and Investment Partnership (TTIP), which will undoubtedly be a central topic of discussion at this year’s meeting.

The TTIP represents an integral component of Bilderberg’s attempt to rescue the unipolar world by creating a “world company,” initially a free trade area, which would connect the United States with Europe. Just as the European Union started as a mere free trade area and was eventually transformed into a political federation which controls upwards of 50 per cent of its member states’ laws and regulations with total contempt for national sovereignty and democracy, TTIP is designed to accomplish the same goal, only on a bigger scale.

The deal is being spearheaded by Obama’s U.S. Trade Representative Michael Froman, a Wall Street insider and a CFR member, Bilderberg’s sister organization. Froman is simultaneously helping to build another block of this global government, the Trans-Pacific Partnership, which is a similar project involving Asian countries.

Given that Bilderberg schemed to create the Euro single currency as far back as 1955 (Bilderberg chairman Étienne Davignon bragged about how the Euro single currency was a brainchild of the Bilderberg in 2009 interview), the results of the European elections are sure to have stirred outright alarm amongst Bilderberg globalists who are aghast that their planned EU superstate is being eroded as a result of a populist resistance mainly centered around animosity towards uncontrolled immigration policies.

In Denmark itself, the buzz is centered around Morten Messerschmidt and the Danish People’s party, which won 27% of the vote in the Euro elections and doubled its number of MEPs. Although some are wary of Messerschmidt’s far right inclinations, his success reflects a general resentment not only in Denmark but across Europe towards immigration and the welfare state, concerns that the EU has only exasperated.

Meanwhile in France, Marine Le Pen is carving out a role as the face of a conservative movement that threatens “to break up one united Europe,” with her European election win being described as an “earthquake” that has rattled the political heart of Europe.

Voters in the United Kingdom also delivered a thumping rejection of the EU and in turn Bilderberg with the success of Nigel Farage and UKIP, a Euroskeptic triumph some are labeling the “most extraordinary” election result for 100 years.

As well as TTIP and the fallout from the European election disaster, Bilderberg will be tackling a number of other key issues, most of which will revolve around the continued effort to centralize economic power under several different guises, including a carbon tax paid directly to the United Nations, with the financial hit being taken by individuals as big companies are granted special “waivers” that will allow them to continue to pollute.

The rumbling crisis in Ukraine and the relationship between Russia and NATO will also be a focal point of Bilderberg 2014. Globalists now consider Vladimir Putin to have ostracized Russia from the new world order because he dared to “challenge the international system,” as John Kerry put it.

Bilderberg will discuss fears that Putin is intent on constructing an alternative world order based around the BRICS countries, a “multi-polar” system that would devastate the dollar as the world reserve currency and also heavily dilute the current US-EU-NATO power axis.

***

Note: Infowars reporters will be on the ground all this week to cover the 2014 Bilderberg Group conference in Copenhagen, Denmark.

MARRIAGE ADVICE FROM CARL SPACKLER

Bill Murray has been married and divorced twice. He’s the perfect guy to give marriage advice at a bachelor party.

An annoying bachelor party interrupted Bill Murray when they happened to see him at a restaurant, and he was gracious enough to drop this wisdom on them…

In the video above, you see shape-shifting coyote trickster god Bill Murray walking in on a bachelor party in Charleston, dishing out some advice to everyone EXCEPT the groom.

Here’s reader Stephen with the background:

“Over Memorial Day weekend, 20 of my buddies from Boston College got together in Charleston for our friend EJ’s bachelor party. At one point during dinner at a steakhouse, one guy goes to the bathroom downstairs and sees Bill Murray sitting with some people with a fishing vest on. We talked to the waiter to see if we could send him some drinks, to which Bill declined. One of my buddies then went down and asked if he’d come up and say a few words for EJ and got a “No thanks.” My buddy comes back up dejected and tells us it’s not going to happen. Two minutes later, Bill fucking Murray walks into the room and gives this speech.

Bill Murray’s job now is to pop up in random spots and make your day, and he’s gotten so, so good at it. His advice is excellent, by the way. “You know how they say funerals aren’t for the dead but for the living?

The Religion Of Consumerism

Submitted by Mike Krieger of Liberty Blitzkrieg blog,

The notion of consumerism as the religion of the United States is nothing new. That said, Warren Pollock did an excellent job explaining just how corrosive this mindset can be to a society. We were particularly taken by the idea that since the vast majority of people define themselves almost entirely by their level of consumption, or by some desired level of future consumption, their consciousness becomes easily controlled and their worldview easily managed and molded.

 

They simply cannot see life in any other context and so they become trapped within a very sick and twisted form of human existence.

 

 

And then there’s George…

 

“…But I’ll tell you what they don’t want. They DON’T want a population of citizens capable of critical thinking. They don’t want well-informed, well-educated people capable of critical thinking. They’re not interested in that, that doesn’t help them. That’s against their interests. That’s right. They don’t want people who are smart enough to sit around the kitchen table and figure out how badly they’re getting FUCKED by system that threw them overboard 30 fuckin’ years ago. They don’t want that. You know what they want? They want OBEDIENT WORKERS. OBEDIENT WORKERS. People who are just smart enough to run the machines and do the paperwork, and just dumb enough to passably accept all these increasingly shittier jobs with the lower pay, the longer hours, the reduced benefits, the end of overtime, and the vanishing pension that disappears the minute you go to collect it…”

QUOTES OF THE DAY

“History is made up of the bad actions of extraordinary men and women. All the most noted destroyers and deceivers of our species, all the founders of arbitrary governments and false religions, have been extraordinary people; and nine tenths of the calamities that have befallen the human race had no other origin than the union of high intelligence with low desires.”

Thomas Babington Macaulay

“The new America, instead, is fast becoming a vast ghetto in which all of us, conservatives and progressives, are being bled dry by a relatively tiny oligarchy of extremely clever financial criminals and their castrato henchmen in government, whose job is to be actors on TV and put on a good show.”

Matt Taibbi, Griftopia

Is It Time to Hide Your Money Under the Mattress?

Is It Time to Hide Your Money Under the Mattress?

By Dennis Miller

“I don’t know what to do,” said my good friend Rob after inviting my wife Jo and me to dinner for the third time in two weeks. “I know I should do something. Every time I think about it, it scares the hell out of me! Maybe I should just hide everything under the mattress.”

Rob is a sharp guy—he’s done well for himself and his family. He also recently settled the last details of his parents’ estate. Upon banking part of his inheritance, the branch manager magically appeared, introduced himself, and invited Rob into his office to discuss “some really good rates” the bank had to offer.

Not even the drive-through window has helped Rob fly under the radar. It still takes but a few seconds before the manager appears and starts his pitch. Rob has started to wonder if the drive-through tellers have a bright yellow “sic ‘em” button.

Rob is a veteran subscriber to Miller’s Money Forever. He reads our material faithfully and isn’t shy about asking questions. He knew for two years this large influx of cash was coming, and he’s made it a point to learn how to handle it.

Up to that point, Rob’s wealth consisted of home equity, retirement plans managed by others, and some collectibles. Now he has a sizable chunk of cash to invest, and he’s understandably scared.

So far, Rob has lots of book learning under his belt, but little real-life investing experience. Every option we discussed at that third dinner evoked a “Yes… but!” After much back and forth, I finally realized Rob’s Achilles heel wasn’t a lack of investment knowledge. Instead, it was his fear.

And Rob is not alone. The following morning, I received a timely message from subscriber and regular correspondent, Bee H. She shared a laundry list of places to put your money—banks, real estate, precious metals, annuities, a mattress—and all the horrible ends that money could meet in those places. Government seizure, market crashes, eminent domain, theft, inflation… the list went on.

Bee’s concerns are not unfounded. I even shared them with Rob under the heading: “See, you aren’t alone.”

Rob’s response: “Wow. She’s reading my mail! I’m stewing over this very same issue…”

Then it hit me hard: What are they afraid of? Not the market and investing, but rather the adverse consequences of government behavior. After nearly every “Yes, but,” Rob expressed fear about what the government might do: a haircut, bailout, bail-in, outright confiscation. Call it what you will.

These fears cross partisan lines. We all have some sense—even if we can’t quite put our finger on it—that our personal and economic liberties are threatened. Heck, every time I look in the sky now, I scan for NSA drones. If I see a tiny speck, I look at the television camera, wave my hand, and say, “Hi, Mom!”

Many of my friends—Independents, Libertarians, Republicans, Democrats, even a Green Party member or two—have told me, “For the first time in my life, I’m afraid of our government.”

Commonsense Alternatives to Your Mattress

If you’ve been reading my articles for any length of time, you know I worship at the altar of practical wisdom. So, my response to Rob and Bee came from that same place.

  • Maintain perspective. You can’t get rid of these political risks entirely (although a little international diversification will help). Vote for the candidates you think are least likely to make things worse and move on.Learn the rules, pay your taxes, and fill out the proper forms. You don’t have to like it, but the punishments for noncompliance can be harsh. Behaving yourself is the best route.

    Plan and execute a retirement approach that will be successful despite foolhardy government action. This is more challenging than it was for our parents’ generation, but it is within your reach.

  • Pay off debt. Rob told his accountant he was going to pay off his house with part of his inheritance. His accountant replied, “No! That’s a terrible plan. Invest the money! You can earn better returns than the interest rate on your mortgage.”Are you kidding me? Rob’s a rookie investor who’s scared to death, and his accountant is telling him to go into the market with borrowed money? Hell, that guy might as well have shown him how to buy on margin while he was at it! Rob held his ground, saying, “I plan to get out of debt and stay that way.”
  • Keep saving. Once you’re out of debt, start making those debt service payments to yourself each month, first. Then live on the rest. Concerns about government confiscation or higher taxes should motivate you to save even more. If the worst comes, you want to have enough left over so you and your family survive.
  • Get a financial checkup. Find a good financial planner, preferably one with a fiduciary responsibility to you (not all have that). Mark your goals, set a realistic plan, and check in annually.
  • Never turn over all of your money to a money manager. Some money? Sure. But ultimately, the only way to protect your money is to learn how to invest it yourself.The first time you click your mouse to make a real trade, your heart will be racing. It’s an emotional experience, but each trade—good or bad—teaches you something and brings more confidence.
  • Understand the motivations of brokerage firms, insurance agents, and banks. Rob experienced this in action. The branch manager offered him a “special rate” on a CD that wouldn’t even keep up with inflation.Brokers and captive houses will gladly do a free financial checkup and encourage you to put your money in their company-sponsored funds. The same is true of insurance companies. While there may be better options, they push for what compensates them the best. Caveat emptor!

    A money manager with a fiduciary responsibility must put your interests ahead of theirs. You want advice from people who are not stakeholders.

    Always ask, “Are there better options available?”

  • Learn the lessons pundits cannot always teach. When you make an asset purchase, write down why. What is your stop loss, and what are your earnings targets? When you sell, investigate what made you successful or what happened that caused you to lose money.You’ll take some losses. Just don’t panic! They don’t have to be expensive learning experiences. As a wise old baseball coach once said, “Make your outs count!”
  • Doing nothing is a choice. It’s an expensive one at that, as your cash loses its buying power to inflation. Invest to protect, invest for income, invest for growth.
  • Take a giant leap of faith… in yourself. Trust your ability to learn, assess a situation, control your emotions, and exercise sound judgment. You’ve already honed those skills in other areas of life; now it’s time to apply them to investing.

Throughout history governments have taxed, spent other people’s money, and made stupid rules. People have succeeded anyway, and you can be among them. Our free weekly newsletter, Miller’s Money Weekly, can help guide you through the traps and pitfalls of personal finance and help you navigate toward a retirement on your own terms. Sign up now, for free.

The War on America’s Military Veterans, Waged with SWAT Teams, Surveillance and Neglect

Guest Post by John W. Whitehead

“As we express our gratitude, we must never forget that the highest appreciation is not to utter words, but to live by them.”John F. Kennedy

Just in time for Memorial Day, we’re once again being treated to a generous serving of praise and grandstanding by politicians and corporations eager to go on record as being supportive of our veterans. Patriotic platitudes aside, however, America has done a deplorable job of caring for her veterans. We erect monuments for those who die while serving in the military, yet for those who return home, there’s little honor to be found.

Despite the fact that the U.S. boasts more than 23 million veterans who have served in World War II through Korea, Vietnam, the Gulf War, Iraq and Afghanistan, the plight of veterans today is deplorable, with large numbers of them impoverished, unemployed, traumatized mentally and physically, struggling with depression, thoughts of suicide, and marital stress, homeless (a third of all homeless Americans are veterans), subjected to sub-par treatment at clinics and hospitals, and left to molder while their paperwork piles up within Veterans Administration (VA) offices.

According to the National Veterans Foundation, the VA has had a backlog of as many as 1.2 million unprocessed claims in recent years, in addition to the fraud and mismanagement within the VA and its network of offices across the country, and secret lists containing thousands of names of veterans who were forced to wait months just to see a doctor.

While President Obama has now declared that he “will not stand” for the mistreatment of veterans under his watch, the time for words is long past. As Slate political correspondent John Dickerson observed, these inexcusable delays represent “a failure of one of the most basic transactions government is supposed to perform: keeping a promise to those who were asked to protect our very form of government.”

Then again, as I detail in my book A Government of Wolves: The Emerging American Police State, the government has been breaking its promises to the American people for a long time now, starting with its most sacred covenant to uphold and defend the Constitution. Yet if the government won’t abide by its commitment to respect our constitutional rights to be free from government surveillance and censorship, if it completely tramples on our right to due process and fair hearings, and routinely denies us protection from roadside strip searches and militarized police, why should anyone expect the government to treat our nation’s veterans with respect and dignity?

Indeed, in recent years, military servicemen and women—many of whom are decorated—have found themselves increasingly targeted for surveillance, censorship, threatened with incarceration or involuntary commitment, labeled as extremists and/or mentally ill, and stripped of their Second Amendment rights, all for daring to voice their concerns about the alarming state of our union and the erosion of our freedoms.

For example, a Department of Homeland Security (DHS) program dubbed Operation Vigilant Eagle tracks military veterans returning from Iraq and Afghanistan, and characterizes them as extremists and potential domestic terrorist threats because they may be “disgruntled, disillusioned or suffering from the psychological effects of war.” Since launching Operation Vigilant Eagle, the government has steadily ramped up its campaign to “silence” dissidents, especially those with military backgrounds. Coupled with the DHS’ dual reports on Rightwing and Leftwing “Extremism,” which broadly define extremists as individuals, military veterans and groups “that are mainly antigovernment, rejecting federal authority in favor of state or local authority, or rejecting government authority entirely,” these tactics have boded ill for anyone seen as opposing the government.

An important point to consider, however, is that the government is not merely targeting individuals who are voicing their discontent so much as it is locking up individuals trained in military warfare who are voicing feelings of discontent. Under the guise of mental health treatment and with the complicity of government psychiatrists and law enforcement officials, these veterans are increasingly being portrayed as ticking time bombs in need of intervention. In 2012, for instance, the Justice Department launched a pilot program aimed at training SWAT teams to deal with confrontations involving highly trained and often heavily armed combat veterans.

Unfortunately, as we’ve seen in recent years, the problem with depicting veterans as potential enemy combatants is that any encounter with a military veteran can escalate very quickly into an explosive and deadly situation—at least, on the part of law enforcement.

For example, Jose Guerena, a Marine who served in two tours in Iraq, was killed in 2011 after an Arizona SWAT team kicked open the door of his home during a mistaken drug raid and opened fire. Thinking his home was being invaded by criminals, Guerena told his wife and child to hide in a closet, grabbed a gun and waited in the hallway to confront the intruders. He never fired his weapon. In fact, the safety was still on his gun when he was killed. The SWAT officers, however, not as restrained, fired 70 rounds of ammunition at Guerena—23 of those bullets made contact. Apart from his military background, Guerena had had no prior criminal record, and the police found nothing illegal in his home.

John Edward Chesney, a 62-year-old Vietnam veteran, was killed earlier this year by a SWAT team allegedly responding to a call that the Army veteran was standing in his San Diego apartment window waving what looked like a semi-automatic rifle. SWAT officers locked down Chesney’s street, took up positions around his home, and fired 12 rounds into Chesney’s apartment window. It turned out that the gun Chesney reportedly pointed at police from three stories up was a “realistic-looking mock assault rifle.”

Thankfully, Ramon Hooks’ encounter with a Houston SWAT team did not end as tragically, but it very easily could have. Hooks, a 25-year-old Iraq war veteran, was using an air rifle gun for target practice outside when a Homeland Security Agent, allegedly house shopping in the area, reported him as an active shooter. It wasn’t long before the quiet neighborhood was transformed into a war zone, with dozens of cop cars, an armored vehicle and heavily armed police. Hooks was arrested, his air rifle pellets and toy gun confiscated, and charges filed against him for “criminal mischief.”

Although no toy guns were involved in Brandon Raub’s case, his fact scenario is even more chilling, given that he was targeted for exercising his First Amendment rights on Facebook. The 26-year-old decorated Marine actually found himself interrogated by government agents about his views on government corruption, arrested with no warning, labeled mentally ill for subscribing to so-called “conspiratorial” views about the government, detained against his will in a psych ward for standing by his views, and isolated from his family, friends and attorneys.

On August 16, 2012, a swarm of local police, Secret Service and FBI agents arrived at Raub’s Virginia home, asking to speak with him about posts he had made on his Facebook page made up of song lyrics, political opinions and dialogue used in a political thriller virtual card game. Among the posts cited as troublesome were lyrics to a song by a rap group and Raub’s views, shared increasingly by a number of Americans, that the 9/11 terrorist attacks were an inside job.

After a brief conversation and without providing any explanation, levying any charges against Raub or reading him his rights, Raub was then handcuffed and transported to police headquarters, then to a medical center, where he was held against his will due to alleged concerns that his Facebook posts were “terrorist in nature.” Outraged onlookers filmed the arrest and posted the footage to YouTube, where it quickly went viral. Meanwhile, in a kangaroo court hearing that turned a deaf ear to Raub’s explanations about the fact that his Facebook posts were being read out of context, Raub was sentenced to up to 30 days’ further confinement in a psychiatric ward.

Thankfully, The Rutherford Institute came to Raub’s assistance, which combined with heightened media attention, brought about his release and may have helped prevent Raub from being successfully “disappeared” by the government. Even so, within days of Raub being seized and forcibly held in a VA psych ward, news reports started surfacing of other veterans having similar experiences.

That the government is using the charge of mental illness as the means by which to immobilize (and disarm) these veterans is diabolically brilliant. With one stroke of a magistrate’s pen, these service men are being declared mentally ill, locked away against their will, and stripped of their constitutional rights. Make no mistake, these returning veterans are being positioned as enemy number one.

Indeed, Raub’s case, a prime example of the government’s war on veterans, exposes the seedy underbelly of a governmental system that is targeting Americans—especially military veterans—for expressing their discontent over America’s rapid transition to a police state.

A federal judge actually dismissed Raub’s lawsuit challenging the government’s “Operation Vigilant Eagle” campaign and its increasing view of veterans as potential domestic terrorists as “far-fetched.” Yet what may sound far-fetched to the courts is a grim reality to Americans who are daily being targeted for daring to exercise their constitutional rights to speak their minds, criticize the government, and defend themselves and their families against over-reaching government surveillance and heavy-handed police tactics.

It’s ironic, isn’t it, that we raise our young people to believe that it is their patriotic duty to defend freedom abroad by serving in the military, then when they return home, bruised and battle-scarred and suddenly serious about defending their freedoms at home, we treat them like terrorists. Then again, perhaps it’s not so much ironic as it is tragic and pathetic—a sad tribute, indeed, to those willing to put their lives on the line.