WILL THE LIBERTARIAN PARTY MATTER IN 2016?

Last Friday night, proving what a party animal I really am, I watched the Libertarian debate during the John Stossel Show. It was a one hour part one of a two part debate. The second part will be tonight. The three candidates are Gary Johnson, the 2012 Libertarian candidate & former Governor of New Mexico; John McAfee, billionaire security software creator; and Austin Petersen, a young unknown quantity.

Stossel is a hard core libertarian, and his show is one of the few Fox shows I can stomach. It was an entertaining hour. All three hold views I generally agree with. Johnson is the odds on favorite to win the nomination again, as he has the best name recognition and track record. I found the debate interesting and completely the opposite of the Republican and Democrat circus debates. There was no yelling, screaming, accusations, or gotcha questions from faux journalists. Stossel asked good questions and the candidates answered them honestly.

Truthfully, none of the three could ever inspire a movement. Ron Paul is more of a Libertarian than any of them. Petersen was the most passionate, quoting the founding fathers at every opportunity. But he is in his thirties, hasn’t done anything of substance, and comes across as naive and child like. McAfee has certainly accomplished stuff in his life. He created a security software company and made a billion dollars. He was also on the run from the law in South America on murder charges, that were never proved. He comes across as a little weird. His statement that we are already at war with China was odd for a Libertarian. He made a few odd statements and joked with Petersen about meeting in a gay bar.

Johnson is the overwhelming favorite to win the nomination again. Denninger hates him. He comes across as if he is smoking some of that weed he has been selling. He has no charisma, no passion, and no guiding principles. He seems alright with forcing businesses to sell to people they choose not to sell to. He is Libertarian-lite. He got the most votes of a Libertarian candidate in history at 1.3 million in 2012. That amounted to 1% of the vote. I voted for him as my protest vote.

The story below was a shock to me. Johnson is currently polling in double digits. The biggest detriment to the Libertarian candidate is not getting to participate in the debates. They need to be polling at 15% or higher to get invited to the debates. The only way to explain his double digit support at this point is the absolute hatred that many Americans have for Clinton and Trump. There is no middle ground. You either love them or hate them. This does open up a door for an alternative candidate. If Ron Paul ran as a Libertarian he would get more than 15%. Those debates would be for the ages.

But, it’s not to be. Watch part two of the Libertarian debate tonight at 9:00 on Fox Business Network and see what you think of these guys. I hope Johnson doesn’t kiss McAfee again, like he did in part one.

Continue reading “WILL THE LIBERTARIAN PARTY MATTER IN 2016?”

Hell Has Frozen Over; Bill Clinton Speaks Truth

…. and it could cost Hillcunt the black vote. Kneegrows and Crazy White People blew up on Twitter. heh heh

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On Thursday, off-script comments directed at Black Lives Matter protesters by would-be First Husband Bill Clinton were seen as possibly drying up the black vote that the Hillary Clinton campaign relies upon.

The former US President broke from his written remarks to criticize Black Lives Matter protesters who had interrupted him during his speech in Philadelphia.

“I don’t know how you would characterize the gang leaders who got 13-year-old kids hopped up on crack and sent them out into the streets to murder other African-American children, maybe you thought they were good citizens, but she didn’t,” the former president declared, defending his wife’s “superpredator” comments in 1996.

“You are defending the people who killed the lives you say matter.”

The context of Ms. Clinton’s 1996 comment has been contested, but the former Secretary of State herself stated, “Looking back, I shouldn’t have used those words and I wouldn’t use them today.”

The “superpredator” theory is that some children, specifically black children, are born sociopaths and are beyond repair. This theory, since debunked, has been used to justify both white supremacist activities and mass incarceration.

The comments by then-First Lady Clinton were made as a justification for her husband’s crime bills that independent researchers blame for a surge in the disproportionate incarceration of black men in America, primarily for non-violent drug offenses.

The group, Black Lives Matter, that protested today’s event has been outspoken on issues of police brutality and the disproportionate mass incarceration of black men.


WHAT ARE THESE PEOPLE DOING?

The two charts below may explain why, despite the propaganda about low unemployment, tremendous job growth and the retirement of Boomers explaining the lower participation rate, the economy is in recession, the middle class is pissed off, and the smell of revolution is in the air. When one in four Americans in the prime working years of 25 to 54 are not working, you’ve got a problem. What are 28.9 million people in the prime of their lives doing, if they are not working for a living. Sure some women are staying home to raise their kids, but how many two parent families can afford to get by on one income these days?

Just based on the historical record of employment to population ratios, the country is short by 3 million to 5 million jobs in this key demographic category. This has nothing to do with Boomers or retirement. Any man between the ages of 25 and 54 years old who is not truly disabled should be working. If they are not, they are either a good for nothing lazy free shitter, or the complete destruction of our blue collar industries by politicians, bankers, and corporate CEOs has left men with no remaining options.

In 1970, 96% of males between the ages of 25 and 54 were participating in the workforce and 93% were employed. Today, only 88% of males between the ages of 25 and 54 are participating in the workforce and only 83% are employed. What are the 12% of males in their prime working years doing, if they’re not working? Even the female participation rate for 25 to 54 year olds is the lowest in almost a quarter century.

I believe this data is at the gist of Trump’s growing popularity. You have a portion of the 25 to 54 population not working because they choose to not work. They are essentially members of the free shit army and expect the producers to pay their way. They will vote Clinton or Sanders. Then there are middle class 25 to 54 year olds who have been laid off because their companies shipped the jobs overseas or the overwhelming tax and regulatory burdens imposed by Obama and his minions have put companies out of business resulting in more layoffs.

Men and women in the prime of their life not working get very angry and frustrated. That anger is bubbling over and the MSM and establishment politicians are shocked because their luxurious secluded lives are unaffected. They will be flabbergasted when Trump wins the presidency on this wave of anger and frustration.


 

President Clinton? How Google ‘bias’ could be election’s deciding factor

Guest Post by raven

 

For what it’s worth.

https://www.rt.com/usa/335569-clinton-election-bias-google/

The article will not be news to most of you. It’s important, but serves more as a starting point to the following thoughts, which have been bouncing around in my head for quite some time now.

Sometimes I feel like many today, and me especially, spend entirely too much time ranting about the darkness, and don’t spend nearly enough time and energy highlighting the signs of renewal happening simultaneously and all around us. I’d rather light a candle than curse the darkness, but the darkness is so darned alluring! I need a sharpening focus and attention on using my time and energy in the service of renewal.  Enlightened elders, many of you fall into that category, are indispensable to me, as your distilled understanding and support, accelerates my understanding, clarifies my vision and emboldens me to take action.

I’ve already arrived at the finish line, as have nearly all of us here, in terms of a decent understanding of where we’ve come from and where things are going, yet I largely continue to harp about and expose the why’s and how’s in the battle of darkness and light, which appear salient in the moment, yet are ultimately irrelevant, because it contributes little to securing the future.  Understanding the “why” of current events is hugely important, but equally important, and maybe more so, is actioning a clear vision of the path ahead, and working diligently to secure a future worthy of our loved ones. I feel like I (we) don’t have a unified vision of our future.  We don’t have a battle plan.  Perhaps it’s just too soon as the full scope of the storm is not yet clear.  Even still, a lot of energy is spend exposing and excising the cancer, all good stuff, and so very little is clear or energized about what’s needed to heal.  Doesn’t that leave us all vulnerable to the worst of the fates before us?

As I look to our future, I have to be able to discern between the innumerable options, avoid the distractions, step forward with faith and confidence, grasping with both hands and making my own, a vision of hope for our wounded world.

Thanks for listening.


Judge Jeanine’s Warning To The GOP: “Your Scorn For The Will Of The American People Is Mindboggling; Be Very, Very Careful”

Tyler Durden's picture

Conservatives for Big Government

Clinton-Big-Gov

Glen Beck’s piece in the National Review has really pissed off a lot of people. He has taken the “elite” position and claims that Trump is not a conservative. “Politically orphaned by their party, conservatives were forced to either stay home or hold their noses and vote for a progressive Republican,” Beck wrote. Quite honestly, the entire “conservative” position is a bunch of crap, because they have not done anything that is “conservative.” They support every war and the NSA. They have done nothing to “reduce” government. The “conservatives” are just a part of the “special” elite class that looks down upon the rest of us as the great unwashed. Even John McCain voted to tax the internet.

The “conservatives” have bullshitted themselves into thinking they are somehow doing something other than lining their own pockets and protecting the bankers just like the Clintons. Beck says, “If Donald Trump wins the Republican nomination, there will once again be no opposition to an ever-expanding government. This is a crisis for conservatism.” It has been the crisis in conservatism that has given rise to Trump.

David Boaz, vice president of the Cato Institute, claims Trump’s idea of the presidency is that he will ride in on a “white horse… fire the stupid people, hire the best people, and fix everything. He doesn’t talk about policy or working with Congress. He’s effectively vowing to be an American Mussolini, concentrating power in the Trump White House and governing by fiat. It’s a vision to make the last 16 years of executive abuse of power seem modest.”

Why work with Congress when they do not work? Should they fire people who have been there through Democrat and Republican eras because they are the unelected bureaucrats? The thought of bringing in more outsiders scares them to death. This system is collapsing and they are too busy lining their pockets to give two shits!

 

Continue reading “Conservatives for Big Government”

The Role That the Clintons Played in Enabling the 2008 Economic Crisis and Financial Coup d’Etat

Guest Post by Jesse

“The crash has laid bare many unpleasant truths about the United States. One of the most alarming, says a former chief economist of the International Monetary Fund, is that the finance industry has effectively captured our government—a state of affairs that more typically describes emerging markets, and is at the center of many emerging-market crises.

If the IMF’s staff could speak freely about the U.S., it would tell us what it tells all countries in this situation: recovery will fail unless we break the financial oligarchy that is blocking essential reform. And if we are to prevent a true depression, we’re running out of time.”

Simon Johnson, The Quiet Coup

As economist Simon Johnson put it so aptly, there was a ‘financial coup d’etat’ in the States. It was a longer term and well-funded effort.

People forget all too quickly what has happened, even things that happened less than twenty years ago. Perhaps it is easily forgotten because there are so few counterexamples of honesty and decency these days in government and business. The UK and Canada are following in lockstep, as well as the central government for Europe in Brussels.

The Clintons, along with a large group of Republican Congressmen and compliant Democrats, put a ‘for sale’ sign not only on the Lincoln bedroom as you may recall, but on the rest of the White House and the Capitol, and indeed, the well being of the people of the United States.

They certainly did not do it alone, as it was a bipartisan effort to overturn the protections established in the darker days of the Great Depression. But the money was good, and it was there for the taking, as well as enormous power to threaten or reward those around them.

We’re All Fascists Now

Hat tip Francis Marion

If Donald Trump is a megalomaniac salivating over taking control of American Weimar, then both Hillary Clinton and Marco Rubio are führers in the making. The same goes for the rest of the field, where each and every candidate aspires to be the Celebrity-in-Chief. Trump only looks worse because he doesn’t have the benefit of a sympathetic media on his side.

Nobody wants to admit it, but fascism defines modern American government. Washington, D.C., isn’t just a leviathan with its controlling tentacles in, around, and on top of everything. It is the molder and shaper of nearly all public life. Corporations take their cues from the federal government. The president tells us how to behave, what norms are appropriate, and how we should feel after a national catastrophe. The American public looks with reverence to the Oval Office.

In his book Fascism Versus Capitalism, Lew Rockwell wrote, “The state, for the fascist, is the instrument by which the people’s common destiny is realized, and in which the potential for greatness is to be found.”

Is that not the platform of every leading presidential aspirant, including Donald Trump?

The sensationalism of the modern presidency means that we’re all fascists now. All social systems rely on power to keep the citizenry in line. We happen to live in a constitutional republic that has fascist elements. We should thank our lucky stars that it isn’t much worse.


BREAD, CIRCUSES & BOMBS – DECLINE OF THE AMERICAN EMPIRE

“Already long ago, from when we sold our vote to no man, the People have abdicated our duties; for the People who once upon a time handed out military command, high civil office, legions — everything, now restrains itself and anxiously hopes for just two things: Bread and Circuses.”Juvenal – Satire (100 A.D.)

  

Roman satirist and poet Juvenal was displaying contempt for a degraded Roman citizenry that had shunned civic responsibility, shirked their duties of citizenship within a republic, and had chosen to sell their votes to feckless politicians for assurances of bread and circuses. Rather than govern according to noble principles based upon reason, striving for public policies that led to long term sustainability and benefitting the majority of citizens, politicians chose superficial displays and appeasing the masses utilizing the lowest common denominator of “free” food and bountiful spectacles, pageants, and ceremonies in order to retain power.

The Roman Empire’s decline stretched across centuries as the gradual loss of civic virtue among its citizenry allowed demagogues to gain power and barbarians to eventually overrun the weakened empire. While the peasants were distracted with shallow exhibitions of palliative pleasures, those in power were debasing the currency, enriching themselves, and living pampered lives of luxury. The Roman leaders bought public approval and support, not through exemplary public service, but through diversion, distraction, and the satisfaction of base immediate needs and desires of the populace. Satisfying the crude motivations of the ignorant peasants (cheap food and entertainment) is how Roman politicians bought votes and retained power. Free wheat, circus games, and feeding Christians to lions kept the commoners from focusing on politicians pillaging and wasting the empire’s wealth.

History may not repeat exactly because technology, resource discoveries, and political dynamics change the nature of society, but it does rhyme because the human foibles of greed, lust for power, arrogance, and desire for conquest do not vary across the ages. The corruption, arrogance, hubris, currency debasement, materialism, imperialism, and civic decay that led to the ultimate downfall of the Roman Empire is being repeated on an even far greater scale today as the American Empire flames out after only two centuries. The pillars of western society are crumbling under the sustained pressure of an immense mountain of debt, created by crooked bankers and utilized by corrupt politicians to sustain and expand their welfare/warfare state. Recklessness, myopia, greed, willful ignorance, and selfish disregard for unborn generations are the earmarks of decline in this modern day empire of debt, delusion and decay.

“Armaments, universal debt, and planned obsolescence – those are the three pillars of Western prosperity. If war, waste, and moneylenders were abolished, you’d collapse. And while you people are over-consuming the rest of the world sinks more and more deeply into chronic disaster.”Aldous Huxley – Island

Rome was eight and a half centuries old when Juvenal scornfully described the degenerative spiral of the Roman populace. Still, the Western Empire lasted another three centuries before finally succumbing to the Visigoths and Vandals. The far slower pace of history and lack of other equally matched competing nation states allowed Rome to exist for centuries beyond its Pax Romana period of unprecedented political stability and prosperity, which lasted for two centuries. Prior to becoming an empire, the Roman Republic was a network of towns left to rule themselves with varying degrees of independence from the Roman Senate and provinces administered by military commanders. It was ruled, not by Emperors, but by annually elected magistrates known as Roman Consuls. The Roman citizens were a proud people who had a strong sense of civic duty and made government work for the people.

During the 1st century B.C. Rome suffered a long series of internal conflicts, conspiracies and civil wars, while greatly extending their imperial power beyond Italy through military conquest. After the assassination of Julius Caesar and the ascension of Augustus to emperor in 27 BC, after a century of civil wars, Rome experienced an unprecedented period of peace and prosperity. During this era, the solidity of the Empire was furthered by a degree of societal stability and economic prosperity. But it didn’t last. The successors to Augustus contributed to the progressive ruination of the empire. The repugnant reigns of Tiberius, Caligula, Claudius, and Nero reflected the true nature of the Roman people, who had relinquished their sovereignty to government administrators to whom they had granted absolute powers, in return for food and entertainment. It was the beginning of the end.

The American Republic began as a loose confederation of states who ruled themselves, with little or no direction from a central authority. The Articles of Confederation, ratified in 1781 by all 13 States, limited the powers of the central government. The Confederation Congress could make decisions, but lacked enforcement powers. Implementation of most decisions, including modifications to the Articles, required unanimous approval of all thirteen state legislatures. After winning the war for independence from England, the U.S. Constitution, which shifted power to a central authority, was ratified in 1789. The Bill of Rights, the first ten amendments to the Constitution, was passed in 1791 with the purpose of protecting individual liberties and insuring justice for all. Their function was to safeguard the citizens from an authoritarian federal government. These imperfect documents would benefit and protect the rights of the American people only if applied by moral, just, incorruptible, noble, honorable leaders and enforced by an educated, concerned, vigilant citizenry.

As with the Roman Empire, the quality of leadership has rapidly deteriorated over the last two centuries and now wallows at disgustingly low levels. These leaders are a reflection of a people who have abandoned their desire for knowledge, responsibility for their lives, work ethic, belief in freedom and the U.S. Constitution. The Juvenal of our times was H.L. Mencken who aptly and scornfully described the citizenry in 1920 as an ignorant mob who would eventually elect a downright moron to the presidency. He was right.

“The larger the mob, the harder the test. In small areas, before small electorates, a first-rate man occasionally fights his way through, carrying even the mob with him by force of his personality. But when the field is nationwide, and the fight must be waged chiefly at second and third hand, and the force of personality cannot so readily make itself felt, then all the odds are on the man who is, intrinsically, the most devious and mediocre—the man who can most easily adeptly disperse the notion that his mind is a virtual vacuum.

The Presidency tends, year by year, to go to such men. As democracy is perfected, the office represents, more and more closely, the inner soul of the people. We move toward a lofty ideal. On some great and glorious day the plain folks of the land will reach their heart’s desire at last, and the White House will be adorned by a downright moron.” H.L. Mencken

A Republic was formed 225 years ago, as opposed to a monarchy, by men of good intentions. They weren’t perfect, but their goals for the new nation were honorable and decent. Ben Franklin had his doubts regarding whether we could keep a republic. He had good reason to doubt the long-term sustainability of this experiment. Freedom is not something bestowed on us by men of higher caste. We are born into this world free, with the liberty to live our lives as we see fit, the opportunity to educate oneself and the freedom to succeed as far as our capabilities and efforts allow. Only a self-reliant, virtuous, moral, civic minded people are capable of enjoying the fruits of freedom. Once corruption, self-interest, greed, and dependency upon government bureaucrats for sustenance become prevalent, the populace seeks masters who promise safety and security in return for sacrificing essential liberty and basic freedoms.

The country has defeated foreign invaders, withstood financial calamities, endured a bloody civil war, benefitted immensely from the discovery of oil under its soil, became an industrial power, fought on the winning side of two world wars, and since 1946 has become the greatest imperial empire since Rome fell to the barbarians. Over the course of our 225 year journey there has been a gradual relinquishment of the citizens’ sovereignty and autonomy to an ever more overbearing central government. Lincoln’s unprecedented expansion of Federal government authority during the Civil War marked a turning point, as state and local rights became subservient to an all-powerful central authority. Individual liberty has been surrendered and freedoms forfeited over a decades long insidious regression of a once courageous, independent, self-sufficient citizenry into a mob of cowering, willfully ignorant dependents of the deep state.

From the inception of the country there has been a constant battle between the banking interests and the common people. Bankers have used fraudulent fractional reserve banking to speculate for their own benefit, made risky loans, and created every financial crisis in the country’s history. The profits from excessive risk taking are retained by the bankers. The inevitable losses are borne by taxpayers with the excuse that the financial system must be saved and preserved. The storyline never changes. The beginning of the end of the American Empire can be pinpointed to the year 1913, only 124 years after its inception. Private banking interests captured the monetary system of the empire with the secretive creation of the Federal Reserve. The power of the central state was solidified with the implementation of the personal income tax, allowing politicians to bribe their constituents with modern day “bread and circuses”, paid for with money taken at gunpoint from them by the central state. We are now nothing but the hollowed out shell of a once noble Republic.

A century of central banking and heavy taxation of the people by bought off politician puppets has coincided with a century of war, depressions, currency debasement, overconsumption, obscene levels of consumer debt, trillions of excessive debt financed government spending, hundreds of trillions in unfunded entitlement liabilities, and a persistent decline in standard of living for the masses due to Federal Reserve manufactured inflation. We have failed to heed the lessons of history. We have repeated the blunders committed by the Romans.

The American Empire will not be murdered by an external force because it is too busy committing suicide. The moneyed interests, corporate oligarchs and their hand-picked politician front men see themselves as conquering heroes. Their colossal hubris and arrogance is only matched by the ignorance, gullibility, quivering fear of bogeymen, and susceptibility to propaganda of the general populace. The Wall Street bankers and feckless politicians are not gods, they are only men. Death is the great equalizer for emperors and peasants alike. The only thing that remains is your legacy and whether you positively impacted the world. It can be unequivocally stated that those in power today are leaving a legacy of despair, destruction, and debt.

Empires are born and empires die. The American Empire will not be sustained for eight centuries, as the swiftness of modern civilization, nuclear proliferation, religious zealotry, and sociopathic leadership ensures we will flame out in a blaze of glory before reaching our third century. The spirit of independence, idealism, self-reliance, entrepreneurship, knowledge seeking, advancement, and goodwill towards our fellow citizens that marked the height of our fledgling country has succumbed to a malaise of government dependency, cynicism, living on the dole, financial Ponzi schemes, willful ignorance, materialism, delusion, and myopic self-interest. The moral decline of the American populace has been reflected in the deteriorating quality of leaders we have chosen over the last century. Prosperity was taken for granted and no longer earned. We abdicated our civic responsibility to corrupt financiers and power seeking politicians. As time has passed, the ruling elite have grown ever more powerful and wealthy, at the expense of the peasantry. These sociopaths see themselves as god-like emperors, on par with the vilest of the Roman emperors.

Historians will mark 1980 as another turning point, when the nation capitulated to the financiers and ceded control of our destiny to Wall Street bankers, the military industrial complex, and globalist billionaires. The final deformation from a productive society built upon savings, capital investment, and goods production to a borrowing, gambling, and consumption society built upon debt and profiteering by powerful corporate and banking interests had commenced. The peak of this warfare/welfare state insanity was reached in 2000 and the road to decline and decay is now littered with the figurative corpses of a gutted middle class and the literal corpses of men, women and children across the globe, killed during our never ending imperial conquests. The ruling elite sense the futility and foolishness of their folly, but their insatiable appetite for wealth, power, triumph and glory blind them to the destructive consequences of their actions upon the nation and their fellow man. Power and dominion over others is a powerful aphrodisiac for our current day emperors and self-preservation at all costs is their mantra.

While they bask in their perceived triumph and glory, achieved through rigging the financial and political systems in their favor, they should heed the faint whisper in their ear that all glory is fleeting.

“For over a thousand years Roman conquerors returning from the wars enjoyed the honor of triumph, a tumultuous parade. In the procession came trumpeteers, musicians and strange animals from conquered territories, together with carts laden with treasure and captured armaments. The conquerors rode in a triumphal chariot, the dazed prisoners walking in chains before him. Sometimes his children robed in white stood with him in the chariot or rode the trace horses. A slave stood behind the conqueror holding a golden crown and whispering in his ear a warning: that all glory is fleeting.” George S. Patton, Jr.

The decline of the Roman Empire can be attributed to a number of supportable hypotheses, which have been documented by historians over time. They include:

  • Perpetual warfare depleted the treasury and wasted the manhood of the empire. The use of mercenary armies eventually led to the sacking of Rome by the very armies they had employed.
  • Military overexpansion and spending resulted in resources being diverted from technological advancement, maintenance of the civil infrastructure, and worthwhile investments to support economic growth.
  • Excessive welfare spending, oppressive taxation and currency debasement widened the gap between rich and poor, resulting in discontent, mistrust and rebellion.
  • The emergence of an all-powerful centralized authoritarian government ruling by mandate, racked by corruption, and kept in power by bribing its subjects with promises of bread and circuses.
  • Emperors and Senators became oligarchs and their conspicuous consumption provided proof of their corruption and decadence. The widespread corruption and incompetence of its leadership led to a waning in civic pride among the citizens.
  • The decline in productive commercial and agricultural industries due to high taxes on producers, used to support the military empire, contributed to the circumstances that allowed barbarian invasions to succeed.
  • The moral decay of the people was caused by the influx of slave labor from conquered territories, resulting in a decline in middle class work ethic, and the subsequent rise in the level of citizens on the dole. An economy based upon slave labor precluded a middle class with buying power.

In Part Two of this tale of two empires, I’ll document the parallels between mistakes made, eternal human foibles, military misfortunes, financial misconduct, and moral decay, that denote the decline of the Roman and American Empires.

VICTORIA NULAND IS A CHENEY NEO-CON

Guest Post by David Warsh

TWO VIEWS OF RUSSIA

Perhaps the single most intriguing mystery of the Ukrainian crisis has to do with how the Foreign Service officer who served as deputy national security advisor to Vice President Dick Cheney for two years, starting on the eve of the invasion of Iraq, became the Obama administration’s point person on Russia in 2014. Victoria Nuland took office as Assistant Secretary of State for European and Eurasian Affairs a year ago this week. She became the “driving force” within the administration to take a tough line against Russia, according to Geoff Dyer of the Financial Times.

It was Nuland who in February was secretly taped, probably by the Russians, saying “F— the EU” for dragging its feet in supporting Ukrainian demonstrators seeking to displace its democratically-elected pro-Russian president Viktor Yanukovych, two months after he rejected a trade agreement with the European Union in favor of one with Russia. She made a well-publicized trip to pass out food in the rebels’ encampment on Kiev’s Maidan Square in the days before Yanukovych fled to Moscow.

When Russian President Vladimir Putin said the other day, “Our Western partners, with the support of fairly radically inclined and nationalist-leaning groups, carried out a coup d’état [in Ukraine]. No matter what anyone says, we all understand what happened. There are no fools among us. We all saw the symbolic pies handed out on the Maidan,” Nuland is the pie-giver he had in mind

Before she was nominated to her current job, Nuland was State Department spokesperson under Secretary Hillary Rodham Clinton during the Congressional firestorm over the attack on the diplomatic post in Benghazi, Libya.

So how did the Obama administration manage to get her confirmed – on a voice vote with no debate?  The short answer is that she was stoutly defended by New York Times columnist David Brooks and warmly endorsed by two prominent Republican senators, Lindsey Graham of South Carolina and John McCain of Arizona.

Clearly Nuland stands on one side of a major fault-line in the shifting, often-confusing tectonic plates of US politics.

A good deal of light was shed on that divide by John Mearsheimer, of the University of Chicago, in an essay earlier this month in Foreign Affairs.  In “Why the Ukraine Crisis Is the West’s Fault,” Mearsheimer described the US ambitions to move Ukraine out of Russia’s orbit via expansion of the North Atlantic Treaty Organization as the taproot of the crisis.  Only after Yanukovych fled Ukraine did Putin move to annex the Crimean peninsula, with its longstanding Russian naval base.

Putin’s actions should be easy to comprehend. A huge expanse of flat land that Napoleonic France, imperial Germany, and Nazi Germany all crossed to strike at Russia itself, Ukraine serves as a buffer state of enormous strategic importance to Russia. No Russian leader would tolerate a military alliance that was Moscow’s mortal enemy until recently moving into Ukraine. Nor would any Russian leader stand idly by while the West helped install a government there that was determined to integrate Ukraine into the West.

Washington may not like Moscow’s position, but it should understand the logic behind it. This is Geopolitics 101: great powers are always sensitive to potential threats near their home territory. After all, the United States does not tolerate distant great powers deploying military forces anywhere in the Western Hemisphere, much less on its borders. Imagine the outrage in Washington if China built an impressive military alliance and tried to include Canada and Mexico in it. Logic aside, Russian leaders have told their Western counterparts on many occasions that they consider NATO expansion into Georgia and Ukraine unacceptable, along with any effort to turn those countries against Russia — a message that the 2008 Russian-Georgian war also made crystal clear.

Why does official Washington think any different? (It’s not just the Obama administration, but much of Congress as well.)  Mearsheimer delineates a “liberal” view of geopolitics that emerged at the end of the Cold War, as opposed to a more traditional “realist” stance.  He writes,

As the Cold War came to a close, Soviet leaders preferred that U.S. forces remain in Europe and NATO stay intact, an arrangement they thought would keep a reunified Germany pacified. But they and their Russian successors did not want NATO to grow any larger and assumed that Western diplomats understood their concerns. The Clinton administration evidently thought otherwise, and in the mid-1990s, it began pushing for NATO to expand.

The first round of NATO expansion took place in 1999, and brought the Czech Republic, Hungary and Poland into the treaty. A second round in 2004 incorporated Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia and Slovenia.  None but the tiny Baltic Republics shared a border with Russia. But in 2008, in a meeting in Bucharest, the Bush administration proposed adding Georgia and Ukraine.  France and Germany demurred, but the communique in the end flatly declared, “These countries will become members of NATO.”  This time Putin issued a clear rejoinder – a five-day war in 2008 which short-circuited Georgia’s application (though Georgia apparently continues to hope).

The program of enlargement originated with key members of the Clinton  administration, according to Mearsheimer.

 They believed that the end of the Cold War had fundamentally transformed international politics and that a new, post-national order had replaced the realist logic that used to govern Europe. The United States was not only the “indispensable nation,” as Secretary of State Madeleine Albright put it; it was also a benign hegemon and thus unlikely to be viewed as a threat in Moscow. The aim, in essence, was to make the entire continent look like Western Europe.

In contrast, the realists who opposed expansion did so in the belief that Russia had voluntarily joined the world trading system and was no longer much of a threat to European peace. A declining great power with an aging population and a one-dimensional economy did not, they felt, need to be contained.

And they feared that enlargement would only give Moscow an incentive to cause trouble in Eastern Europe. The U.S. diplomat George Kennan articulated this perspective in a 1998 interview, shortly after the U.S. Senate approved the first round of NATO expansion. “I think the Russians will gradually react quite adversely and it will affect their policies,” he said. “I think it is a tragic mistake. There was no reason for this whatsoever. No one was threatening anyone else.”

Policies devised in one administration have a way of hardening into boilerplate when embraced by the next. So thoroughly have liberals come to dominate discourse about European security that even the short war with Georgia has done little to bring realists back into the conversation. The February ouster of Yanukovych is either cited as the will of a sovereign people yearning to be free or, more frequently, simply ignored altogether.

The liberal worldview is now accepted dogma among U.S. officials. In March, for example, President Barack Obama delivered a speech about Ukraine in which he talked repeatedly about “the ideals” that motivate Western policy and how those ideals “have often been threatened by an older, more traditional view of power.” Secretary of State John Kerry’s response to the Crimea crisis reflected this same perspective: “You just don’t in the twenty-first century behave in nineteenth-century fashion by invading another country on completely trumped-up pretext.”

Nuland was present at the creation of the liberal view. She served for two years in the Moscow embassy, starting in 1991; by 1993 she was chief of staff to Deputy Secretary of State Strobe Talbott. She directed a study on NATO enlargement for the Council on Foreign Relations in 1996, and spent three more years at State as deputy director for Former Soviet Union Affairs.

After a couple of years on the beach at the Council on Foreign Relations, President George W. Bush named her deputy ambassador to NATO in Brussels, in 2001. She returned to Brussels in the top job after her service to Cheney. When Obama was elected, she cooled her heels as special envoy to the Talks on Conventional Forces in Europe for two years until Clinton elevated her to spokesperson. Secretary of State John Kerry promoted her last year.

It seems fair to say that Putin has trumped Obama at every turn in the maneuvering over Ukraine – including last week, when the Russian president concluded a truce with the humbled Ukrainian president Petro Poroshenko while leaders of the NATO nations fumed ineffectively at their annual summit, this year in Wales. Never mind the Islamic State in Iraq and Syria, China, Israel. Even in Europe, the president’s foreign policy is in tatters.

Backing away from the liberal view is clearly going to be costly for some future presidential aspirant. The alternative is to maintain the expensive fiction of a new Cold War.

EPIC FAIL – PART ONE

 “Facts are to the mind what food is to the body.” – Edmund Burke

No wonder one third of Americans are obese. The crap we are shoveling into our bodies is on par with the misinformation, propaganda and lies that are being programmed into our minds by government bureaucrats, corrupt politicians, corporate media gurus, and central banker puppets. Chief Clinton propaganda mouthpiece, James Carville, famously remarked during the 1992 presidential campaign that, “It’s the economy, stupid”. Clinton was able to successfully convince the American voters that George Bush’s handling of the economy caused the 1991 recession. In retrospect, it was revealed the economy had been recovering for months prior to the election. No one could ever accuse the American people of being perceptive, realistic or critical thinking when it comes to economics, math, history or distinguishing between truth or lies. Our government controlled public school system has successfully dumbed down the populace to a level where they enjoy their slavery and prefer conscious ignorance to critical thought.

The next six months leading up to the November elections will surely provide a shining example of the degraded society we’ve become. Both parties and their propaganda machines, SuperPacs, and corporate media sponsors will treat the igadget distracted masses to hundreds of hours of lies, spin, and vitriol, designed to divert the public from the fact that both parties act on behalf of the same masters and have no intention of changing course of the U.S. Titanic to avert the iceberg dead ahead. We will be treated to storylines about race, gun control, the war on women, energy independence, global warming, the war on terror, the imminent threat of Iran and North Korea, Obamacare, Romneycare, and of course the economy, stupid.

There are 240 million voting age Americans. About 130 million will likely vote in the 2012 election based upon recent voter participation results. This means that 110 million Americans don’t give a crap about who runs this country or they’ve come to their senses and realize our votes don’t matter. Between 1840 and 1900 voter participation ranged between 70% and 82% as Americans took their civic duty seriously and believed their vote counted. Since 1913, when the politicians relinquished control of our currency to a private bank controlled by a small group of powerful men, voter participation for President has ranged between 49% and 62%. It hasn’t surpassed 57% since 1968. Now that corporations are people and our candidates are selected by a few rich men, the transformation from a republic to a corporate fascist state is almost complete. During the coming interminable political campaign you will hear about jobs until your ears bleed. I can guarantee that 98% of the rhetoric will be false. Neither party wants the American people to understand the truth about what happened to our economy and jobs over the last 100 years. It has been a bipartisan screw job and ignoring the facts doesn’t change them.

The first fact that can’t be ignored is how many Americans are actually unemployed today. Here is some truth you won’t get from a politician or media talking head:

  • There are 243 million working age Americans.
  • There are 142 million employed Americans.
  • Only 101 million of the employed Americans are working more than 35 hours per week. This means that only 41.6% of all working age Americans have a full-time job.
  • According to the government drones at the BLS, 88 million Americans have “chosen” to not be in the labor force – the highest level in U.S. history.
  • The percentage of Americans in the workforce at 63.8% is the lowest since 1980 and down from a peak of 67.1% in 2000. The difference between these two percentages is 8 million Americans.
  • The BLS reports there are only 12.7 million unemployed Americans in the country, down from 15.3 million in 2009.
  • The BLS reports the unemployment rate has dropped from 10% in late 2009 to 8.3% today. Over this time frame the working age population grew by 5.7 million, while the number of employed Americans grew by 3.6 million. Only a government drone could interpret this data and report a dramatic decline in the unemployment rate.

 

Any critical thinking human being would examine the data being reported as fact by our government and regurgitated without question by the corporate mainstream media and conclude it is false, misleading and manipulated. The economy was booming in 2000 and 67.1% of the working age population were in the labor force. Today the economy is in much worse shape. More people NEED to work in order to just make ends meet, but according to the government, 8 million Americans have chosen to not work. Only an Ivy League economist or CNBC bimbo pundit would believe such a blatant distortion of reality. A comparison to prior decades provides all the evidence you need:

  • In 1980 the working age population was 168 million and the labor force totaled 107 million.
  • By 1990 the working age population grew by 21 million and the labor force grew by 19 million.
  • By 2000 the working age population grew by another 23 million and the labor force advanced by 17 million.
  • Since 2000 the working age population has grown by 30 million, but shockingly the labor force has supposedly grown by only 12 million.

 

This data is so twisted that there is absolutely no doubt the Federal Government is purposely manipulating the numbers to make the economic situation appear better than the reality. During the Great Depression propaganda and spin had not been perfected. There weren’t multiple definitions of unemployment designed to confuse and mislead the public. The peak level of unemployment in the 1930s was 25%. The current reported level is 8.3%. On a comparable basis to the 1930s, including short-term discouraged workers, those forced to work part-time, and the long-term discouraged workers which were defined out of existence in 1994 by the BLS, the real unemployment rate is 22% today. It feels like a depression for millions of Americans because it is a depression.

 

The rhetoric from the Obama administration about a jobs recovery is laughable. Full time employment peaked in July 2007 at 122.4 million. Today there are 113.9 million people classified as full-time, with only 101.3 million working more than 35 hours. There are 8.5 million fewer people with full time jobs today than there were in 2007. That fact is even more disheartening considering the working age population has grown by 10.5 million over the same time span. Taking an even longer term view provides the perspective needed to assess our true economic state.  Total nonfarm employment hasn’t grown in twelve years, while the working age population has grown by 30 million people.

 

Obama will tout the fact that we’ve added 3.6 million jobs since the bottom of this recession. What he won’t tout is that hiring of temporary workers surged by 37% and accounted for 25% of all the jobs added since 2009. I’m sure these temporary workers, with no health or retirement benefits, are confident about their future.  The facts about jobs and employment are consistent with the 47 million Americans on food stamps (up from 35 million when the recession supposedly ended). It’s a sure sign of recovery when spending on food stamps doubles in the last two years. No depression here, just move along.  

 

Record numbers of Americans being added to the SSDI rolls for depression and other illusory disabilities is surely a positive development pointing to a strong economic recovery. In just the first four months of this year, 539,000 joined the disability rolls and more than 725,000 put in applications. “We see a lot of people applying for disability once their unemployment insurance expires,” said Matthew Rutledge, a research economist at Boston College’s Center for Retirement Research. The number of applications last year was up 24% compared with 2008, Social Security Administration data show. Why participate in the labor market when you can collect a government check for life because you are obese or depressed. These are the people no longer in the labor force. Once they go on SSDI, they rarely go back to work again.   

 

The government reported figure of 12.7 million unemployed Americans is an utter falsehood. There are in excess of 30 million Americans that are either unemployed or working part-time that want full-time jobs. Government propaganda doesn’t change the facts.

 “Facts don’t cease to exist because they are ignored.” – Aldous Huxley

Would You Like a Side Order of Facts with That Propaganda?

When you watch the Wall Street scam artists paraded on CNBC declaring the number of people not in the labor force is going up due to Baby Boomers retiring, you should understand they are propagating a falsehood. They are either intellectually dishonest or too lazy to do the most basic of research. They are paid millions to impart false storylines to anyone dumb enough to watch CNBC expecting facts or a smattering of truth. If you want some truth, turn to John Mauldin and John Hussman. CNBC doesn’t invite these outstanding honest analysts on their station when they can roll out a shill like Abbey Joseph Cohen or James Paulson. They wouldn’t want some factual analysis when they can have Becky Quick do one of her frequent handjob interviews with that doddering old status quo fool Warren Buffet.

A critical thinker might wonder how could real disposable income be dropping over the last three months and only have risen by 0.3% in the last year if we’ve had the strong job growth touted by Obama. Could it be the jobs being created are extraordinarily low-paying? There are signs of desperation everywhere you look. The two charts below, from one of John Mauldin’s recent articles, reveal the truth about the Baby Boomers retiring storyline. The first chart shows the employment level for those over the age of 55 since 2007. There were 25.3 million people over the age of 55 working in 2007 and there are 30.1 million working today. People over 55 have seen their total employment level rise by 4.8 million jobs since the beginning of the recession, and over 3 million jobs since the 3rd quarter of 2009. Total employment is down by 4 million since 2007, while employment among those over 55 is up 19%. John Hussman described the reality about employment in his recent weekly article:

“If you dig into the payroll data, the picture that emerges is breathtaking. Since the recession “ended” in June 2009, total non-farm payrolls in the U.S. have grown by 2.32 million jobs. However, if we look at workers 55 years of age and over, we find that employment in that group has increased by 3.04 million jobs. In contrast, employment among workers under age 55 has actually contracted by nearly one million jobs, regardless of which survey you use. Even over the past year, the vast majority of job creation has been in the 55-and-over group, while employment has been sluggish for all other workers, and has already turned down.”

I wonder how Larry Kudlow will spin this.

 

Now for the really eye opening facts. While the labor participation rate has been plunging, the Boomer participation rate has been skyrocketing. The participation rate for the over 65 age group is now at an all-time high. Do you think this has anything to do with home values dropping 36% since 2005, gasoline prices doubling since early 2009, food prices surging by 25%, the 1.4% annual return of stocks since 1999, or the .15% senior citizens can earn on their money today versus the 5% they could earn in 2007?

 

Intellectually dishonest ultra-liberal Ivy League defender of the Federal Reserve – Paul Krugman had this to say about Ben Bernanke’s zero interest rate policy on senior citizens:

“Finally, how is expansionary monetary policy supposed to hurt the 99 percent? Think of all the people living on fixed incomes, we’re told. But who are these people? I know the picture: retirees living on the interest on their bank account and their fixed pension check — and there are no doubt some people fitting that description. But there aren’t many of them.”

It must be comforting living in an ivory tower or penthouse suite and looking down upon the ignorant masses while caressing your Nobel Prize. The millions of senior citizens with $100,000 of savings could earn $5,000 of interest income in 2007 to supplement their $18,000 of Social Security income. Today, they can earn $150 while the Wall Street banks receive the benefits of ZIRP by borrowing for free from the Federal Reserve and earning billions risk free. Paulie doesn’t think the $4,850 reduction in income and the 15% increase in inflation since 2007 had a negative impact on senior citizens. They must be pouring into the work force because they are just bored, after working for the last 45 years. John Hussman has a slightly different viewpoint, based upon facts rather than a false disproven ideology:    

“Beginning first with Alan Greenspan, and then with Ben Bernanke, the Fed has increasingly pursued policies of suppressing interest rates, even driving real interest rates to negative levels after inflation. Combine this with the bursting of two Fed-enabled (if not Fed-induced) bubbles – one in stocks and one in housing, and the over-55 cohort has suffered an assault on its financial security: a difficult trifecta that includes the loss of interest income, the loss of portfolio value, and the loss of home equity. All of these have combined to provoke a delay in retirement plans and a need for these individuals to re-enter the labor force.

In short, what we’ve observed in the employment figures is not recovery, but desperation. Having starved savers of interest income, and having repeatedly subjected investors to Fed-induced financial bubbles that create volatility without durable returns, the Fed has successfully provoked job growth of the obligatory, low-wage variety. Over the past year, the majority of this growth has been in the 55-and-over cohort, while growth has turned down among other workers. Meanwhile, broad labor force participation continues to fall as discouraged workers leave the labor force entirely, which is the primary reason the unemployment rate has declined. All of this reflects not health, but despair, and helps to explain why real disposable income has grown by only 0.3% over the past year.”

Do you believe Krugman or Hussman? The key takeaway from the data is the desperation exhibited by average Americans, while the political governing elite and Wall Street pigs continue to gorge themselves at the trough of free money provided by the Federal Reserve, while paying themselves obscene bonuses for a job well done buying the corrupt Washington politicians.

 

Over the next six months we will hear unceasing rhetoric from Obama and Romney about how they are going to create jobs. Neither of these government apparatchiks have a clue about jobs or desire to change the course that was set one hundred years ago with the creation of the Federal Reserve. Obama never worked at a real job in his entire life, while Romney has spent his life firing people and spinning off heavily indebted companies to unsuspecting investors. The current deteriorating jobs picture has been decades in the making and a truly bipartisan effort. The rhetoric about America being an engine of growth and the world leader in innovation and entrepreneurship is laughable when examined with a critical eye. We are an aging empire living in the past as the facts portray an entirely different reality. Our fastest growing industries include:

  • Solar panel manufacturing (subsidized by your tax dollars)
  • For-profit universities (diploma mills subsidized by your tax dollars)
  • Pilates and yoga studios
  • Self-tanning product manufacturing
  • Social network game development
  • Hot sauce production

The “surge” in jobs in the last three months is being driven by these industries:

  • Food services and drinking places
  • Administrative and support services
  • Ambulatory health care services
  • Credit intermediation
  • Hospitals

Is this the picture of a world leading jobs machine or a delusional, paper pushing, self-involved, obese, sickly, overly indebted crumbling empire? The job openings in industries that actually produce something are barely identifiable on the chart below. Maybe the University of Phoenix can successfully retrain construction and manufacturing workers to be waiters, waitresses, and Wal-Mart greeters if the Federal government can funnel more of our tax dollars into student loans.    

 

If you thought low wage work was only for Chinese, Indians, and Vietnamese, you haven’t been paying attention. The United States is a world leader. We are by far the world leader among developed countries in percentage of low wage workers at 24.8%. I find it hysterical that the dysfunctional insolvent countries of Greece, Spain, Portugal, and Italy have a much smaller percentage of low wage workers than the great American empire. We have 142 million employed Americans and 35 million are slaving away in low paying thankless jobs. This explains why the half the workers in the country make less than $25,000 per year.  

 

The top three employment occupations in the country are:

  • Office and administrative support work
  • Sales & Related
  • Food preparation and serving related

 

There are high paying good jobs in America, but there aren’t many and on-line college graduates from the University of Phoenix aren’t going to get them. The highest paying jobs today require a high level of specialization and education, especially in the healthcare and technology industries. This disqualifies the vast majority of government run public school graduates. High paying manufacturing jobs which were the backbone of the country during the 1950s and 1960s are gone forever. The reasons for this transformation are multifaceted and will be addressed in Part Two of this article. It didn’t happen by accident and there are culprits to blame. The conversion of our country from making high quality things other countries needed to a debt driven service economy of paper pushers, hash slingers, and retail “specialists” has slowly but surely destroyed the middle class. The masses are distracted by the latest technological marvel that allows them to waste another two hours per day posting how they feel about the latest episode of America’s Got Something or America’s Top Whatever. We have become a country that glories in our materialism and shallow culture while acting like a thug around the world with our unparalleled military machine.  

This result is not an accident. It was set in motion by the actions of a handful of rapacious, wealthy powerful men that have been calling the shots in this country for the last hundred years. It wasn’t a planned conspiracy but the logical result of man-made inflation, a fiat currency not backed by gold, the craving of rich men to become richer, a willfully ignorant populace, and a slow devolution of our society into a corporate fascist state. We praise and honor psychopathic criminals while scorning and ridiculing the middle class workers that built this country. The American dream has become a nightmare for the millions of unemployed and underemployed. The acceleration of debt accumulation and money printing guarantees this rotting carcass of a country will go belly up in the foreseeable future.     

“Thus did a handful of rapacious citizens come to control all that was worth controlling in America. Thus was the savage and stupid and entirely inappropriate and unnecessary and humorless American class system created. Honest, industrious, peaceful citizens were classed as bloodsuckers, if they asked to be paid a living wage. And they saw that praise was reserved henceforth for those who devised means of getting paid enormously for committing crimes against which no laws had been passed. Thus the American dream turned belly up, turned green, bobbed to the scummy surface of cupidity unlimited, filled with gas, went bang in the noonday sun.” – Kurt Vonnegut

In Part Two of this article I will examine how we got to this point and what is likely to happen next.



 

JOHN REED ADMITS THAT WALL STREET IS A CORRUPT CESSPOOL FILLED WITH MAGGOTS

Bill Moyers with an excellent hour of truth about how and why Wall Street was permitted to destroy the world. It simply comes down to greed. The powerful and wealthy use their power and wealth to gain even more power and wealth until they destroy the world. The repeal of Glass Steagall allowed the 2008 collapse to occur. This was bipartisanship at its best. If you ever needed proof that it doesn’t matter which party is in power, the repeal of this law proves that Wall Street and the Federal Reserve run this country.

John Reed, the former CEO of Citicorp, admits to being guilty of setting the whole disaster in motion. Moyers is too easy on him. Reed’s honesty was refreshing until the segment where he declares that the banks had to be bailed out. He said there was no other choice. There was. The Wall Street banks should have been nationalized (like Sweden did in 1990), all top executives should have been fired, all stockholders and bondholders wiped out, all bad debt should have been liquidated, and good assets should have been sold off to well run banks. It is a Big Lie propagated by the governing elite and the corporate MSM that bailing out the banks saved the country from financial collapse. It saved a few wealthy men from financial collapse.

The most despicable fact is that the very banks that destroyed the world and impoverished the middle class are much bigger today than they were in 2007. And people wonder why the Occupy Movement is growing more violent. Senator Byron Dorgan proves to be one of the few who saw what would happen. He goes on my good guy list.

This is a must watch video.  

BERNANKE PLEDGES TO SCREW YOUR GRANDMOTHER FOR AT LEAST TWO MORE YEARS

“A system of capitalism presumes sound money, not fiat money manipulated by a central bank. Capitalism cherishes voluntary contracts and interest rates that are determined by savings, not credit creation by a central bank.” – Ron Paul

  

I wonder what goes through Ben Bernanke’s mind as he sits in his gold plated boardroom in the majestic Marriner Eccles building in Washington DC and decides to screw grandmothers in order to further enrich Wall Street bankers. He just pledged to keep interest rates at zero percent for two more years. Ben is a supposedly book smart man. Does he have no guilt or shame for what he has wrought? How does he sleep at night knowing he has created bloody revolutions around the globe due to his inflationary zero interest policy? People are dying because he has decided that an elite group of Wall Street bankers who recklessly brought down the worldwide financial system in 2008 deserve to be kept alive and enriched at the expense of the many.

He uses words like transitory to describe inflation. Even as the price of gold reveals his lies he continues to promote policies that will lead to the demise of the USD and our economic system. There is only one way to counter his lies – truth. With a corporate fascist government run by the few for the benefit of the few, telling the truth is treason as stated by Ron Paul:

“Truth is treason in the empire of lies.”

The storyline being sold to you by Bernanke, his Wall Street masters, and their captured puppets in Washington DC is that deflation is the great bogeyman they must slay. They make these statements from their ivory jewel encrusted towers as the real people in the real world deal with reality. The reality since Ben Bernanke announced his QE2 policy in August 2010 is:

  • Unleaded gas prices are up 45%.
  • Heating oil prices are up 46%.
  • Corn prices are up 71%.
  • Soybean prices are up 26%.
  • Rice prices are up 13%.
  • Pork prices are up 31%.
  • Beef prices are up 25%.
  • Coffee prices are up 38%.
  • Sugar prices are up 48%.
  • Cotton prices are up 13%.
  • Gold prices are up 42%.
  • Silver prices are up 115%.
  • Copper prices are up 23%.

These are the facts and they fly in the face of the lies being spouted by Bernanke and his Federal Reserve cronies. Words like transitory, quantitative easing, extended period, and liquidity are used by Professor Bernanke to obscure what he is doing to the average American. He lives in a world of theories and models, while the rest of us live in the real world, where theories kill and impoverish millions. There are 40 million Americans over the age of 65 today. You might even know a few of them. There will be 10,000 people per day joining their ranks for the next nineteen years as the Baby Boomers retire en masse. The vast majority of these senior citizens are risk averse. Some disturbing facts reveal the true picture for seniors today:

  • Most senior citizens do not have a traditional pension plan because they have been going out of style over the past 30 years.  In 1980, some 39% of private-sector workers had a pension that guaranteed a steady payout during retirement. Today that number stands closer to 15%, according to the Employee Benefit Research Institute in Washington, D.C. 
  • 35% of Americans already over the age of 65 rely almost entirely on Social Security payments alone. 
  • Approximately 3 out of 4 Americans start claiming Social Security benefits the moment they are eligible at age 62.  Most are doing this out of necessity. This probably has something to do with the fact that the median retirement savings of households over the age of 65 is less than $45,000.   
  • The median household net worth of all Americans fell from $97,000 in 2005 to $70,000 in 2009. The median household net worth of households over 65 years old fell from $200,000 in 2005 to approximately $150,000 in 2009. Two thirds of seniors’ net worth is the equity in their primary residence, meaning they have $50,000 or less of financial assets (cash, stocks, bonds). 
  • 20% of all the households in the United States have zero or negative net worth.  

This data sets the scene for the crime of the century committed by Ben Bernanke and his co-conspirators on the Federal Reserve Board. The easiest way to understand how Ben has screwed seniors and savers to pay off his Wall Street and K Street benefactors is to use a real life example.

A seventy five year old widow living in her paid off row home, bought in 1955, gets by on her annual social security income of $17,000 and the income generated from the $125,000 in retirement savings left from her husband’s forty years working as a truck driver. She is a child of the Depression, financially unsophisticated and risk averse. This describes most senior citizens. The widow and her late husband were only comfortable investing their money in CDs and money market funds. In 2007, before the Wall Street created financial collapse, savers and risk averse senior citizens could earn 5% in a money market fund, 5.5% in a 2 year CD and 6% in a 5 year CD. The widow could supplement her meager social security income with an additional $6,000 of interest income. This money was used to pay the ever increasing real estate taxes, medical insurance premiums, upkeep on the old house, and necessities like food, fuel, insurance and heating.

Fast forward four years to 2011. Savers and seniors are getting average interest rates on 6-month CDs this week of 0.58% nationwide, according to Bankrate.com. Rates on one-year CDs fell this week to 0.86%, while 5- year CDs fetched 2.04%. Money market funds are paying a pitiful 0.16% on average. The widow that was able to generate a risk free $6,000 only four years ago has only been able to generate less than $500 per year for the last three years. In addition, the government manipulated CPI, as calculated by the drones at the Bureau of Labor Statistics, was used to deny senior citizens an increase in their Social Security payments for the last two years. Meanwhile, the prices of food, fuel, clothing, insurance, medical care, and local taxes have been skyrocketing due to Federal Reserve created inflation. Do you think the number of Americans on food stamps surging from 26.3 million in 2007 to 45.8 million today has anything to do with Bernanke’s zero interest rate, inflationary policies?

This is not a theoretical hypothesis. Ben Bernanke has purposely sacrificed the savers and seniors in this country at the satanic altar of his Wall Street high priests of debt. According to the BEA data on personal income, in the 3rd quarter of 2008 savers and seniors were able to earn $1.42 trillion of interest income. By the 3rd quarter of 2010 these same people were only able to earn $984 billion of interest income due to Ben Bernanke’s zero interest rate policy. Make no mistake about it, the $436 billion difference was taken out of the pockets of senior citizens and Americans trying to save for their futures and deposited into the accounts of the mega-Wall Street banks that destroyed our financial system with their reckless greed induced debt toga party. The beneficiaries of zero interest rates, QE1, QE2, and all future QEs are Wall Street bankers and heavily indebted entities – namely our profligate Federal Government, who make drunken sailors, seem fiscally responsible. The victims of zero interest rates and quantitative easing are savers and risk averse senior citizens as their income has plummeted and inflation has ravaged their everyday existence. Meanwhile, the Wall Street fat cats have paid themselves over $70 billion in bonuses since 2008.

The fantasy world of moderate inflation is a myth created by the Federal Reserve in conjunction with the government bureaucrats in Washington DC. These people have tortured the CPI calculation worse than a Muslim being water boarded at Guantanamo Bay. Alan Greenspan, bubble blower extraordinaire, began the process of systematically screwing grandmothers in the 1980s. As a way to hide and obscure the true level of inflation caused by running endless deficits supporting a welfare/warfare empire, Greenspan and Clinton implemented devious adjustments to the CPI in order to screw senior citizens and allow Big Government to get bigger while stealthily impoverishing the middle class. One man has pulled back the curtain on the Wizards of Inflation to reveal the truth. John Williams at www.shadowstats.com publishes the true rate of inflation as measured in 1980, prior to the fraudulent manipulation of the CPI. The reality is that inflation has not dropped below 5% since 1987 and currently exceeds 10%.

  

John Williams described the Greenspan/Clinton conspiracy to defraud Americans:

“The Greenspan argument was that when steak got too expensive, the consumer would substitute hamburger for the steak, and that the inflation measure should reflect the costs tied to buying hamburger versus steak, instead of steak versus steak. Of course, replacing hamburger for steak in the calculations would reduce the inflation rate, but it represented the rate of inflation in terms of maintaining a declining standard of living. Cost of living was being replaced by the cost of survival. The old system told you how much you had to increase your income in order to keep buying steak. The new system promised you hamburger, and then dog food, perhaps, after that. Over a period of several years, straight arithmetic weighting of the CPI components was shifted to a geometric weighting. The Greenspan benefit of a geometric weighting was that it automatically gave a lower weighting to CPI components that were rising in price, and a higher weighting to those items dropping in price.” 

Now we hear the latest bipartisan plan to “save” Social Security is to alter the CPI again and further defraud Americans by pretending inflation does not exist. Why address a problem when you can obfuscate, misinform and lie? Anyone with critical thinking skills can clearly see that since 2007 real inflation for our widow has ranged between 5% and 10%, while her subsistence level income has been slashed by 26% due to Ben Bernanke’s zero interest rate policy. The good news is our widow will have the peace of mind knowing the price of steak and hamburger hasn’t really risen as she decides on whether to dine on dog food or cat food tonight.

 

“Government spending is always a “tax” burden on the American people and is never equally or fairly distributed. The poor and low-middle income workers always suffer the most from the deceitful tax of inflation and borrowing.” – Ron Paul

 

The Road to Impoverishment & Authoritarianism

There is a direct connection between Federal Reserve policies and the impoverishment of the middle class and seniors. The average American does not appreciate the disastrous consequences of deficit spending and currency devaluation by the Federal Reserve. Ron Paul has been sounding the warning for over a decade, but no one has been listening:

“The greatest threat facing America today is the disastrous fiscal policies of our own government, marked by shameless deficit spending and Federal Reserve currency devaluation. It is this one-two punch– Congress spending more than it can tax or borrow, and the Fed printing money to make up the difference– that threatens to impoverish us by further destroying the value of our dollars.”

It is no longer a threat. It is reality. The chart below tells the story.

The Federal Funds rate was 6.5% when George W. Bush assumed the presidency in 2000. The economy was booming, unemployment was 4.2%, the country was running fiscal surpluses, and the National Debt stood at $5.7 trillion. Alan Greenspan was the Federal Reserve Chairman and had been in that position since 1987. The Federal Funds Rate averaged 5.25% from 1990 through 2000 as the country grew strongly and America came the closest to full employment in its history. In 2001 Greenspan set in motion the creation of a tsunami of debt that swept over the entire country in 2008. The short shallow 2001 recession convinced Greenspan to reduce rates to 1% and keep them below 3% until the middle of 2005. He did this with the full support of his right hand man at the Fed – Ben Bernanke.

“The failure of Chairman Greenspan and other FOMC members to address the fiscal and monetary problems of the United States during his almost two decades at the Fed has left the United States on a trajectory for economic stagnation, hyperinflation, and the attendant political and social costs of such policies.”Chris Whalen Inflated – How Money & Debt Built the American Dream 

Greenspan kept interest rates excessively low three years into an economic recovery, creating the largest bubble in world history. He handed the inflation baton to Bernanke in February 2006 and Ben has been sprinting at top speed for the last five years printing money faster than a Japanese bullet train. With a true rate of inflation running between 5% and 10% during the 2000 through 2011 time frame, market driven interest rates should have been in that same range. But Alan and Ben have kept the Federal Funds rate at an average level of 2.25% over this period. The result has been a consumer debt bubble, housing bubble and now a government debt bubble. Instead of accepting the consequences of excessive liquidity, excessive debt and mal-investment by the Wall Street banks and liquidating the toxic poison from our economic system with the resulting economic depression and losses borne by the stockholders and bondholders of the criminal Wall Street enterprises, Ben Bernanke and Tim Geithner chose to sacrifice the American taxpayer, savers, and seniors to keep their Wall Street masters in their NYC penthouses and Hamptons estates.

The shrieking liberal left blames capitalism and demands more social welfare benefits for their entitled constituents. The fact is we have not had true capitalism in this country since 1913.

“Capitalism should not be condemned, since we haven’t had capitalism. A system of capitalism presumes sound money, not fiat money manipulated by a central bank. Capitalism cherishes voluntary contracts and interest rates that are determined by savings, not credit creation by a central bank.” – Ron Paul

 

The Day the Dollar Died – August 15, 1971

“With the exception only of the period of the gold standard, practically all governments of history have used their exclusive power to issue money to defraud and plunder the people.” – F.A. von Hayak 

“The road paved with inflation and debt is also the road to authoritarianism.” – Chris Whalen Inflated – How Money & Debt Built the American Dream 

On August 15, 1971, exactly forty years ago this week, Richard Nixon closed the gold window and removed the last vestiges of restraint on politicians and central bankers. Politicians were free to make promises that couldn’t be kept to buy votes and central bankers were free to print fiat dollars and create inflation to support an ever growing warfare/welfare state. On that date the non-manipulated CPI was 40.8. Today, forty years later, the highly manipulated CPI is 225.7, a 553% increase. In reality, true inflation has risen more than 700% since August 1971. Some other facts put this relentless inflation into perspective:

  • GDP has ascended from $1.1 trillion to $15.0 trillion today, a 1,364% increase in forty years.
  • The National Debt has risen from $400 billion to $14.5 trillion, a 3,625% increase in forty years.
  • Total wage income has grown from $588 billion to $6.627 trillion today, a 1,127% increase in forty years.
  • Consumer credit outstanding has accumulated from $141 billion to $2.446 trillion today, a 1,735% increase in forty years.
  • War spending has increased from $95 billion to $966 billion today, a 1,017% increase in forty years. The U.S. was in the midst of the Vietnam War in 1971.
  • Social welfare transfers from the Federal government for Social Security, Medicare, Medicaid, Veterans, and Unemployment increased from $87 billion to $2.305 trillion today, a 2,649% increase in forty years.

These facts prove how twisted and warped our economic system and society have become. Real wages are lower than they were in 1971 as families were forced to put two parents into the workforce forcing children to be raised by strangers, with the resultant social consequences. The corporate media, financial industrial complex and housing industrial complex convinced Americans they had to keep up with the Joneses with new luxury automobiles, extravagant McMansions, and the expensive accoutrements that went along with these representations of fake wealth. The financial plundering of the country by the peddlers of debt on Wall Street could not have happened without the easy money, no regulation policies of the Federal Reserve for the last decade. The National Debt is increasing at a rate of 10% per year while GDP is increasing at a rate of less than 2% per year. Anyone with even the most basic math skills can see this train is going to go off the tracks. Our spending on social welfare benefits has grown at a rate twice as high as our GDP growth for the last forty years and the establishment in Washington has no resolve to address these un-payable promises. The liberals squealed like stuck pigs over the horrific non-cuts in the recent joke debt ceiling compromise. The neo-cons who control the Republican agenda think $1 trillion per year for their war machine is far too little and endangers our very existence. Consumers refuse to accept the reality of their precarious existence balanced on the edge of their 13 credit cards.

Americans of all parties, ages, races, persuasions, education and beliefs have shirked their civic and moral responsibility to future generations. The rampant greed on Wall Street, corruption in Washington DC, shallowness of the American people and cowardice of all in not accepting responsibility for their actions will lead to the end of this country as we know it. There is no courage among the political class in Washington DC to truly take the steps required to save this country from the most predictable cataclysm in history. The politicians and citizens they represent have decided to delegate their civic responsibility to Ben Bernanke. He has tripled the Federal Reserve’s balance sheet by acquiring the toxic mortgage “assets” of the Wall Street banks and buying $600 billion of U.S. Treasuries. The Federal Funds Rate is .07%. His announcement of zero interest rates for two more years proves he has run out of theories and ammo. Jim Rickards, in 2010, pointed out the danger in Bernanke’s reckless policies:

“Fed Chairman Bernanke wakes up every morning and tries to trash the dollar with quantitative easing, zero interest rates and swap lines with the central banks. But it has not been working. The Fed has never taken it to the next step and asked what happens when quantitative easing does not work.”

The utter failure of QE2, hollow Congressional spending “cuts” that will keep the National Debt on track towards $23 trillion by 2021, S&P downgrade and recent plunge in the stock market are the first cracks in the façade of the great American Empire. We have entered a period of institutional crisis and this fiscal spiral will lead us further into the clutches of a more centralized authoritarian form of government unless the people stand up to the junta of mercantilist oligarchs that control this country. Do we want to relinquish our remaining freedoms and liberties for the cloak of corporate fascist authoritarian central planning disguised as safety and security? The Romans chose security over freedom. The time has come to make a choice about what we will become. Ben Franklin stated the obvious two centuries ago:

 Those who would give up Essential Liberty
to purchase a little Temporary Safety,
deserve neither Liberty nor Safety.

– Ben Franklin