THE MILITARY INDUSTRIAL COMPLEX’ BIGGEST CUSTOMERS

Looks like Saudi Arabia is preparing for internal strife. What is India preparing for? It’s good to be an American arms dealer. Your bought off politicians promote chaos and war across the globe, and your profits soar. Spreading American democracy has never been so lucrative.

According to IHS Jane’s, Saudi Arabia has displaced India as the world’s biggest importer of defense equipment. Saudi arms imports increased 54 percent between 2013 and 2014, reaching $6.46 billion. To put the scale of the Middle East’s booming weapons trade into perspective, Saudi Arabia and the United Arab Emirates imported $8.6 billion of military equipment in 2014 – that’s more than the defense imports of Western Europe combined.

With the Kingdom reinforcing its armed forces to counter regional threats such as Iran and the Islamic State, weapons shipments are set to increase even further in volume. Ongoing deliveries of advanced weapons systems including F-15 and Typhoon fighter jets are going to boost imports 52 percent in 2015 to $9.9 billion. Worldwide, India is in second place with defense imports in 2014 amounting to $5.57 billion. China completes the top three, spending $2.6 billion on arms imports in 2014.

Infographic: Saudi Arabia Has Become The World's Biggest Arms Importer | Statista

You will find more statistics at Statista


FOURTH TURNING – THE SHADOW OF CRISIS HAS NOT PASSED – PART FOUR

In Part One of this article I explained the model of generational theory as conveyed by Strauss and Howe in The Fourth Turning. In Part Two I provided an overwhelming avalanche of evidence this Crisis has only yet begun, with debt, civic decay and global disorder propelling the world towards the next more violent phase of this Crisis. In Part Three I addressed how the most likely clash on the horizon is between the government and the people. War on multiple fronts will thrust the world through the great gate of history towards an uncertain future.

War on Multiple Fronts

“The risk of catastrophe will be very high. The nation could erupt into insurrection or civil violence, crack up geographically, or succumb to authoritarian rule. If there is a war, it is likely to be one of maximum risk and effort – in other words, a total war. Every Fourth Turning has registered an upward ratchet in the technology of destruction, and in mankind’s willingness to use it.” – Strauss & Howe – The Fourth Turning

The drumbeats of war are pounding. Sanctions are implemented against any country that dares question American imperialism (Russia, Iran). Overthrow and ignominious imprisonment or death awaits any foreign leader questioning the petrodollar or standing in the way of America spreading democracy (Iraq, Libya, Syria, Ukraine, Egypt). The mega-media complex of six corporations peddle the government issued pabulum about ISIS being an existential threat to our freedoms; Russia being led by the new Hitler and poised to take over Europe; Syria gassing innocent women and children; and Iran only six months away from a nuclear bomb (they’ve been six months away for the last fourteen years). Hollywood does their part with patriotic drivel like American Sniper, designed to compel low IQ unemployed American youths to swell with pride and march down to enlistment centers, located in our plentiful urban ghettos.

The most disconcerting aspect of Fourth Turnings is they have always climaxed with total destructive all-out war. Not wars to enrich arms dealers like Iraq, Afghanistan, and Syria, but incomprehensibly violent, brutal, wars of annihilation. There are clear winners and losers at the conclusion of Fourth Turning wars. Leaders mobilize all forces, refuse to compromise, define their enemies in moral terms, demand sacrifice on the battlefield and home front, build the most destructive weapons imaginable, and employ those weapons to obtain victory at any cost.

It may seem inconceivable that war on such a scale will happen within the next ten years, but it was equally inconceivable in 1936 that 65 million people would die in the next ten years during World War II. We valued all the wrong things and made all the wrong choices leading up to this Crisis and during the early stages of this Crisis. The accumulation of unmet obligations, unpaid bills, un-kept promises and unresolved issues will provide the fuel for an upheaval that will shake our society to its core and transforms the country’s direction for the next sixty years. The outcome of the conflict could be tragedy or triumph. Our choices will make a difference.

There will be war on many fronts, and they have already begun. The culmination will likely be World War III, with the outcome highly uncertain and potentially disastrous.

Continue reading “FOURTH TURNING – THE SHADOW OF CRISIS HAS NOT PASSED – PART FOUR”

SHOULD YOU BELIEVE WHAT THEY TELL YOU OR WHAT YOU SEE?

Sometimes I wish I could just passively accept what my government monarchs and their mainstream media mouthpieces feed me on a daily basis. Why do I have to question everything I’m told? Life would be much simpler and I could concentrate on more important things like the size of Kim Kardashian’s ass, why the Honey Boo Boo show was canceled, the Victoria Secret Fashion Show, whether I’ll get a better deal on Chinese slave labor produced crap on Black Thanksgiving, Black Friday, or Cyber Monday, fantasy football league standings, the latest NFL player to knockout their woman and get reinstated, Obama’s latest racial healing plan, which Clinton or Bush will be our next figurehead president, or the latest fake rape story from Rolling Stone. The willfully ignorant masses, dumbed down by government education, lured into obesity by corporate toxic packaged sludge disguised as food products, manipulated, controlled and molded by an unseen governing class of rich men, and kept docile through never ending corporate media propaganda, are nothing but pawns to the arrogant sociopathic pricks pulling the wires in this corporate fascist empire of debt.

I’m sure my blood pressure would be lower and my mood better if I just accepted everything I was told by my wise, sagacious, Ivy League educated, obscenely wealthy rulers as the unequivocal truth. Why should I doubt these noble, well intentioned, champions of the common folk? They’ve never misled us before. They would never attempt to use two highly publicized deaths as a lever to keep black people and white people fighting each other and not realizing all races are now living in a militarized police surveillance state supported by the one Party. They would never use their complete control over the financial, political, judicial, and media organisms to convince the masses that voting for one of their hand selected red or blue options will ever actually change anything. They would never engineer the overthrow of a democratically elected government, cover up the shooting down of an airliner, and attempt to blame their crimes on the leader of a nuclear power in their efforts to retain a teetering global empire. They would never overthrow or wage economic warfare on countries that don’t toe the line regarding the continued dominance of the petrodollar in global commerce.

Sadly, I’m cursed with a mind that questions everything and trusts no one in authority or associated with the status quo. It’s the reason I don’t read newspapers or watch mainstream media television entertainment propaganda, disguised as news. It’s the reason I will never vote in a national election again. The lesser of two evils is still evil. I’m skeptical of every piece of data fed to the sheep by the government apparatchiks working for the state. The faux journalists being paid millions by one of the six corporations controlling the media and dependent upon the government, Wall Street bankers, and mega-corporations for their advertising revenues regurgitate whatever they are told by those pulling the purse strings. The mainstream media are nothing but propaganda peddlers for the Deep State and truth telling is prohibited in their world of deception, debt, and denial. Their job is to sustain, enhance, and further enrich the status quo by engineering consent through what they report and what they do not report. The true ruling powers who operate in the shadows behind the scenes are men of power, wealth, status and education who truly believe they are better equipped to consciously manage and manipulate the public mind to achieve their ends. They are disciples of the Edward Bernays School of deception, manipulation and propaganda.

“If we understand the mechanism and motives of the group mind, is it not possible to control and regiment the masses according to our will without their knowing about it? The recent practice of propaganda has proved that it is possible, at least up to a certain point and within certain limits.” Edward Bernays

The Nazis were pikers compared to the technologically savvy Madison Avenue maggots and Silicon Valley snakes who mold the opinions, tastes, and beliefs of the iGadget addicted, vapid, unintelligent, unquestioning, zombie-like masses who beseech to be led, told what to do and what to believe. A vast swath of the population don’t read books or even know how to read above a grade school level. They couldn’t write a coherent paragraph if their life depended upon it. But they can twitter, text, Instagram, and facebook at the speed of light. Try walking down any street in an American city without some iGadget distracted oblivious moron bumping into you. The addicting nature of today’s technology is being used by the ruling elite to monitor, control, and make you respond the way they choose.

Facebook, corporate media organizations, quasi-government organizations, and the NSA are creating a corporate totalitarian state where the slaves willingly sacrifice their privacy, liberty and freedom for mindless entertainment and distractions. The 21st Century totalitarian state captures your political beliefs, daily activities, habits, interests, spending behaviors, organizational associations, love life, pictures, psychological makeup, and fears from your own postings on the internet. With the right algorithms they can uncannily predict how you will react to different situations and messaging. They can also uncover threats to the status quo. Under the guise of keeping you safe from terrorists they are actually ferreting out subversives and radicals who refuse to conform to their idea of a good citizen slave. We will all be subject to our own Room 101.

Dan Kaplan in his recent article about Facebook as a tool for totalitarianism lays out the extreme threat to our future:

Today’s totalitarian demands a more subtle way to influence cultural and political sentiment. But if you got your hands on an algorithmically filtered newsfeed? One that could control the stories people see every day and influence their emotions across geographic, political and economic lines? You’d be in business.

But then there was the mood-influence study that scandalized us for a couple of weeks this year. Facebook changed the tone of content showing up in people’s feeds to test the impact it could have on their moods. The results, not too surprisingly, suggested that Facebook has the power to manipulate sentiment at scale.

Given how easy it is to scare people about the scary-seeming-but-actually-low-risk Ebola, and how dumb we all get when we are afraid, it is not crazy to think that under the wrong circumstances — like one or two more mass-scale terrorist attacks on major cities — modern democracy gives way to something akin to 1984.

If Big Brother were to seize the reins of power, sure, he’d use the cable news the way it’s being used today. But Facebook’s data maw, targeting power and sentiment-manipulation capabilities would be far more insidious. Whether this is what we become or not comes down to the future we choose to build.

The saddest part of this episode of mass delusion, mass confusion, and mass media collusion is that even though we are moving towards Orwell’s totalitarian vision of society, thus far, technology, triviality and an unending array of distractions have lured the masses into passive preoccupation with egotistical pleasures. We’ve been persuaded to love our servitude while drowning in a sea of irrelevance, diversions, and trifles. We continue to amuse ourselves to death while forging our own chains of debt and yielding to the direction of an all-powerful welfare warfare surveillance state that promises to protect us from phantom threats while actually abolishing our rights, freedoms, and liberties. No coercion necessary. We have been trained to love our servitude.

“A really efficient totalitarian state would be one in which the all-powerful executive of political bosses and their army of managers control a population of slaves who do not have to be coerced, because they love their servitude.” Aldous Huxley – Brave New World

Arrogance, Desperation, Lies & Truth

 “Facts do not cease to exist because they are ignored.” – Aldous Huxley

The level of data massaging by the government and their co-conspirators on Wall Street and in the corporate media is a futile attempt at a happy ending that will never come to fruition. The intensity and relentlessness with which the state and its quasi-state minions attempt to paint a false picture of economic recovery is equal parts arrogance and desperation. The arrogance is a function of successfully pulling off the greatest heist in world history from 2003 through 2008 with no adverse consequences, no criminal charges, no penalties for their crimes, and more power and wealth than they had prior to 2003. The only way to stop sociopaths is to throw them in jail or kill them. In our dystopian paradise of greed, they were rewarded with trillions in rescue packages by their cohorts in crime at the Federal Reserve and in Congress. They’ve paid themselves billions in bonuses for gorging at the Federal Reserve trough of QE and ZIRP. The desperation is borne from the fact that after $7.5 trillion of debt added by the Federal government and $3.5 trillion of debt created by the Federal Reserve since 2009, the Greater Depression for average Americans deepens by the day.

The men pulling the strings behind the scenes are drunk with power and their hubris allows them to believe their own infallibility and blinds them to the dire consequences for our country when their debt Ponzi scheme fails. But, as we grow ever closer to the day of reckoning, they will use every means at their disposal to paint a positive picture, regardless of the facts and reality for the average person. The examples of twisting, distorting and outright lying about the economic reality of our times are endless. These are some of the major false storylines peddled by our benevolent corporate fascist leaders:

The BLS reported 321,000 jobs added in November and the unemployment rate at 5.8%. Jobs are plentiful, based upon these statistics.

A skeptical critical thinking individual might ask a few questions or point out a few inconvenient facts the government purveyors of propaganda might not want us to ponder:

  • The non-manipulated, non-seasonally adjusted number of jobs in November FELL by 270,000. The BLS added 600,000 jobs as an adjustment to achieve the headline grabbing result.
  • If the jobs market is so good, why is the labor participation rate at a 30 year low of 62.8%?
  • Since 2007 the number of working age Americans has risen by 17 million, while the number of employed has risen by less than 1 million, but the unemployment rate is about the same.
  • Why would almost 14 million working age Americans leave the labor force since 2007 if the economy is booming and jobs plentiful, with 1.2 million leaving in the last 12 months?
  • Why would payroll tax receipts be flat with last year if millions of new jobs have been created?
  • If the country has really added 8 million jobs since 2010, how could real median household income FALL by 2.3%?

According to the government reported figures, the economy hasn’t been this strong since 2007. GDP has supposedly grown at greater than 4% over the last two quarters.

Anyone who is sentient knows consumer spending accounts for 68% of GDP. Capital investments that lead to long term prosperity continue to decline as a percentage of GDP from 20% in 2000 to 16% today. We’ve chosen consumption and financialization over savings and investment. This fact leads to some observations:

  • If GDP has actually grown by 20% since 2008 how does this correlate with a 6.9% decline in real median household income?
  • GDP has been goosed by a $69 billion increase in government spending, with the majority going to the military industrial complex. ISIS has been a godsend for our GDP and arms dealer profits.
  • GDP was increased retroactively by $500 billion last year based on a new way the government accounts for intangibles.
  • The surge in consumer expenditures over the last two quarters has been in the purchase of services. The higher costs for Obamacare are a boon for GDP. Are they a boon for your bank account?
  • The trade deficit has fallen as exports of petroleum products have temporarily provided a boost to GDP. The collapse in oil prices will reverse that trend rapidly.

According to the quasi-governmental mouthpieces at the Conference Board, consumer confidence is near a 5 year high, reflecting what should be robust spending.

So we are told by the representatives of corporatism that we are confident about the economy and the future. How does that measure up to the facts on the ground:

  • Black Friday weekend sales collapsed by 11% versus the previous year. As the pundits tried to blame it on on-line sales (10% of total retail sales), Cyber Monday also proved to be a dud.
  • If the average person is confident about the future and happy with their economic circumstances, why did they just vote to throw out the bums in November?
  • If consumers are confident, why have real retail sales, excluding subprime debt goosed auto sales, been flat for the last three months and up only 1% in the last year?
  • If consumers are so confident, why are credit card balances still $138 billion BELOW where they were in 2008? If all these new jobs are being created why is credit card debt lower than it was in mid-2010? Maybe consumers are so desperate they are using credit cards to pay utility and tax bills and not using them for frivolous Chinese crap at big box retailers.
  • The increased spending at grocery stores and restaurants is driven by food inflation, not foot traffic. Discretionary spending at furniture, electronics, and sporting goods stores is flat.
  • Department store sales continue to fall. Sears and JC Penney teeter on the verge of bankruptcy. Delia’s is liquidating and Radio Shack isn’t far behind. The major chains have completely stopped building new stores. The great bricks and mortar unwind relentlessly plods forward. In addition, online growth is stalling as states implement sales taxes.

According to the government, the deficit was ONLY $483 billion in 2014.

This is a real doozy. Obama has been touting how he has cut the deficit through his wise management of the budget. This is where government accounting is used by apparatchiks to mislead the public and obscure the truth. A few pertinent facts are always left out by the politicians touting deficit reduction:

  • Because of the budget impasse in 2013, the Federal government stopped updating the national debt on a daily basis, but we know from when they started counting again, the debt went up by $2.3 billion per day. Therefore, the national debt on October 1, 2013 was approximately $17.038 trillion. On October 1, 2014 the national debt was $17.875. Therefore, the national debt went up by $837 billion in 2014. Just a smidge higher than the reported deficit of $483 billion.
  • Interest is not paid on reported deficits. It’s paid on the national debt, so the massaged, manipulated and made over deficit is meaningless. The national debt was always slightly higher than reported deficits, but in the last few years the deviation has grown to a Grand Canyon size.
  • The deficit number has been artificially lowered by nothing other than accounting entry hocus pocus. The Federal Reserve increasing its balance sheet to $4 trillion out of thin air creates approximately $80 billion of phantom interest profits that are paid to the Treasury. Why don’t they increase their balance sheet to $40 trillion and eliminate deficits all together?
  • The biggest accounting scam is Fannie and Freddie. Just as the Wall Street banks have created fake profits through accounting entries regarding future losses, Fannie and Freddie have gone the extra mile in helping fake deficit reduction. These bloated insolvent government run pigs required a $187 billion taxpayer bailout in 2009. Amazingly, when you allow criminals to value their assets at whatever they choose, phantom profits flow like honey.
  • These two horribly run institutions of fraud “generated profits” of $129 billion in 2014 which were “paid back” to the Treasury. That is four times more than Apple or Exxon’s profits during a non-existent housing recovery. Why are their stocks trading at just over $2 per share if they are generating vastly more profits than they were in 2007 when their stocks were north of $70 per share? It’s because the profits are fake. Everyone knows it, but the Federal Deficit is reported $129 billion lower because these insolvent entities pretended to pay the taxpayer back. Accounting entries do not reduce deficits. Spending less than you generate in revenues reduces deficits.

According to the government, we’ve experienced a strong housing recovery since 2010.

The supposed housing recovery storyline continues to be beaten like a dead horse by the Wall Street media (CNBC) and the shills at the NAR. Anyone with a functioning brain (eliminates CNBC bimbos, hacks, and Ivy League economists) can see there has been no real housing recovery:

  • The 24% rise in home prices (Case Shiller Index) since the 2012 low has been nothing more than a Wall Street hedge fund/Federal Reserve scheme to elevate prices and make Wall Street bank balance sheets less insolvent. Wall Street banks withholding foreclosures from the market while Wall Street hedge funds (Blackstone) use free money from the Fed to buy up housing and rent it out to former homeowners has enriched the .1% while destroying the dream of home ownership for millions.
  • The percent of first time home buyers remains near record lows, while speculators, flippers, hedge fund managers, and rich Chinese businessmen make up a record number of purchasers. The fact this is a fake housing recovery is proven by mortgage applications to purchase a home sitting at 1995 levels and 30% below 2009 recession lows. Maybe the fact real median household income is also at 1995 levels, real wages keep declining, and labor force participation is at 1978 levels has something to do with real people not being able to purchase a home.

  • Even with the artificial hedge fund demand, existing home sales are lower than 2013 and languishing at 1999 levels. They are still 25% below 2005 levels, despite the lowest mortgage rates in history. New home sales are a disaster, with no appreciable increase in two years. Apartment construction has far outpaced single family housing construction. After a five year housing recovery, new home sales languish at levels seen at the bottom of our last six recessions. New home sales are 65% below the 2005 peak and at levels seen in the early 1960’s when there were 130 million less people living in the country.

According to the corporate media, the auto market is hitting on all cylinders with annual sales of 16.4 million, the highest since 2006.

Pretending to sell automobiles to people without the means to pay you for the automobile is always a good business idea. Of course, when you have Ally Financial and the rest of the Wall Street banking cabal doling out 7 year 0% loans and subprime auto loans like candy, it’s easy to move inventory. The temporary boost to GDP by issuing more bad debt always works out in the long run. Right?

  • If the auto business is booming why have GM profits fallen from $9.2 billion in 2011 to $5.4 billion in 2013, and on course to fall to $4 billion in 2014? Record levels of channel stuffing produces sales gains, but no profits. Why is their stock 25% below its 52 week high and lower than it was in 2010 when it was IPO’d after being rescued by Obama?
  • If the auto business is booming why are Ford’s profits falling by 35% versus last year and lower than they were in 2010? Why is their stock price 16% below its 52 week high and still 20% below its 2010 price?
  • Auto loan debt is at an all-time high of $950 billion, up 33% since 2010 when the Fed, Wall Street, and the political class in the fetid D.C. swamp decided they needed new debt bubbles in auto loans and student loans to jump start our moribund economy.
  • There are 65 million auto loans outstanding, and the average debt now stands at $17,352. Over 30% of auto “sales” are actually leases. The rest are financed over an average of 65 months. Virtually all new car sales are nothing more than 3 to 7 year rentals. It’s amazing what easy money from the Fed can produce.
  • Over 31% of all new auto loans this year were to subprime borrowers. They now account for 36.5% of all outstanding auto loans. You become a subprime borrower by defaulting on previous debt obligations. In a shocking development, auto loan delinquencies surged by 13% in the last quarter, with subprime loan delinquencies skyrocketing by 18%. When has issuing billions of debt to subprime borrowers ever caused problems before?
  • Only a University of Phoenix African Studies major is more of a subprime risk than the millions of ecstatic Escalade drivers cruising around our urban ghetto paradises. The average student loan debt is now $33,000. Until the Obama administration went Keynesian, student loan debt was primarily in the private sector. When Obama entered the White House total student loan debt was $620 billion and delinquencies totaled $50 billion. There are now $1.3 trillion of student loans outstanding, with the Federal government accounting for $830 billion and guaranteeing a large portion of the rest. Delinquencies have skyrocketed to $125 billion, as another taxpayer bailout beckons.

According to the corporate mainstream media pundits, the plunge in oil prices from $100 per barrel to $61 per barrel is unequivocally good for the economy. The shale oil boom has worked its magic and happy times are here again.

Sometimes you have to wonder whether the highly educated spokesmodels on the corporate mainstream media are really as vacuous and clueless as they appear or whether they are just paid to look pretty and mouth the corporate line. They seem incapable of comprehending the unintended consequences of various events. The collapse in oil prices is one of those events.

  • There is no doubt that lower oil prices will lower the price of gas for the average American. Estimates say they will save $368 per year, which can be spent elsewhere. The highly paid shill economists who declare this will boost spending seem to be math challenged. Retail sales figures include gas stations. What isn’t spent there will be spent in another category, most likely healthcare or groceries as prices in both areas continue to escalate. It’s a zero sum game. No new spending will occur.
  • The worldwide supply of oil has only increased marginally over the last few years. The U.S. shale boom has been offset by declines elsewhere (Libya, Iran, Mexico). The reason for the collapse is the same reason for the 2009 collapse – worldwide demand is contracting. Europe is in a depression. Japan is in a depression. Russia’s economy is contracting. China is decelerating rapidly. The U.S. demand is flat. The implications of another global recession after five years of central banks printing trillions of fiat currency are alarming to say the least.
  • The cost to extract shale oil and transport it to a refinery capable of processing it is high. Honest analysts will tell you that a price of $70 to $80 is required to breakeven. Most companies don’t build breakeven into their plans. Bakken shale oil sells at a discount of about $14 per barrel due to the difficulty of extraction, transport, and processing. It is now selling for $47 per barrel. The number of permits for new rigs fell by 40% in November when oil was still selling for $75 per barrel. Do you think permits for new wells will fall at a price of $61 per barrel? Capital spending by the energy industry accounted for 33% of all capital spending in the last few years. I’m sure some other industry will pick up the slack. Right?
  • It seems the shale oil boom has resulted in a few jobs being created since the 2010 recession trough. In fact the states where fracking is prevalent have accounted for all the job growth in the nation. I wonder if a shale oil bust will have any employment implications. There are 9.3 million jobs related to the energy industry across the country. The plunge in oil prices created by Saudi Arabia in the 1980s created a depression in Texas which contributed to the S&L crisis. This plunge will reveal who has been swimming naked in the high yield bond market and derivatives market.

These are just a few examples among a multitude of lies. Others include: stocks aren’t overvalued, gold isn’t money, inflation is good for you, and ISIS terrorists are an imminent threat to your way of life. Every feel good story fed to the masses by the oligarchs running this shitshow we call America is no different than the propaganda doled out by other infamous totalitarian regimes throughout history. We believe things because we’ve been conditioned to believe them. The crony capitalist oligarchs are intelligent enough to invent theories to explain how the world should work, but not intelligent enough to interpret their models correctly. When they act on their theories (Keynesianism), their actions appear to be those of a lunatic. Despite all evidence refuting their theories, their arrogance and hubris lead them to destruction. The collective insanity of this world is almost too much for a rational thinking person to grasp. The extremely wealthy men operating in the shadows will use every means at their disposal to retain power, enhance their wealth, and crush dissent.

“Being a card carrying member of the privileged class means never having to say I’m sorry, much less ‘not guilty.’  Power is doing what you want when you want, and consequences are for everyone else. Or perhaps these titans of modern industry and the halls of power are at heart just good natured bumblers, who in a genuine belief destroy lives and crash economies, while pursuing insane ideological assumption put forward by vested interests, all the while stuffing their pockets, and crushing all dissent with the political skills of a Machiavelli and the ruthlessness of Al Capone.” – Jesse

The two party system is nothing but a ruse designed to keep the people believing they have a say in how things are run in this country. Both parties support the military industrial complex. Both parties support the militarization of police forces around the country. Both parties support the mass surveillance of its citizens. Both parties do the bidding of their rich corporate and special interest benefactors. Both parties favor deficit spending for eternity. Both parties believe the government should expand its role in our everyday lives. Both parties do the bidding for and protect the Wall Street interests who really run this country. No more proof is needed than what has occurred over the last five years, as criminal Wall Street bankers were rewarded for their malfeasance with trillions of dollars from taxpayers and their puppets at the Federal Reserve. While we were allowing ourselves to be distracted, amused, entertained, and indebted, the oligarchs were busy conducting a silent coup.

“Let’s be clear about this, the oligarchs are flush with victory, and feel that they are firmly in control, able to subvert and direct any popular movement to the support of their own fascist ends and unslakable will to power.

This is the contempt in which they hold the majority of American people and the political process: the common people are easily led fools, and everyone else who is smart enough to know better has their price. And they would beggar every middle class voter in the US before they will voluntarily give up one dime of their ill-gotten gains.

But my model says that the oligarchs will continue to press their advantages, being flushed with victory, until they provoke a strong reaction that frightens everyone, like a wake-up call, and the tide then turns to genuine reform.” – Simon Johnson

The oligarchs have had a good run. The system cannot be reformed from within. The corruption runs too deep. The system is broken and can’t be fixed. There is no doubt in my mind that a collapse approaches which will make 2008/2009 look like a walk in the park. The anger, blame and retribution will sweep away the existing social order and replace it with something new. It will be up to the people to decide what happens next. We were warned two centuries ago by a wise man. Hopefully, we’ll get a 2nd chance.

“However political parties may now and then answer popular ends, they are likely in the course of time and things, to become potent engines, by which cunning, ambitious, and unprincipled men will be enabled to subvert the power of the people and to usurp for themselves the reins of government, destroying afterwards the very engines which have lifted them to unjust dominion.” George Washington

 

BREAD, CIRCUSES & BOMBS – DECLINE OF THE AMERICAN EMPIRE – PART TWO

In Part One of this article I discussed the similarities between the Roman Empire and the American Empire at a high level. In this article I’ll delve into some specific similarities and rhymes between the fall of the Roman Empire and our modern day empire of debt, decay and decline. I’ll address our expansive level of bread and circuses and how defects in our human nature lead to people willingly sacrificing their liberty for promises of safety and security. All empires decline due to the same human failings and ours is no exception. If anything, ours will be far more spectacular and rapid due to our extreme level of hubris, arrogance, willful ignorance and warlike preference for dealing with foreign powers.

It seems there were a few visionary thinkers in the late 1950s who foresaw the dire course our former Republic was setting. Their writings were a prophecy and a warning. There was still time to change course and avoid the pitfalls that led to the Roman Empire collapse. In Brave New World Revisited, Aldous Huxley warned against allowing a few amoral men using propaganda, scientific advancements, technology, brainwashing, and economics to control and manipulate a willfully ignorant populace into a dystopian dictatorship. The Soviet and Chinese dictatorships of the late 1950s are long gone, but Huxley foresaw how modern propaganda techniques would be used by the state to drown the masses in a sea of triviality, irrelevance, and consumerism.

“In their propaganda today’s dictators rely for the most part on repetition, suppression and rationaliza­tion — the repetition of catchwords which they wish to be accepted as true, the suppression of facts which they wish to be ignored, the arousal and rationaliza­tion of passions which may be used in the interests of the Party or the State. As the art and science of manip­ulation come to be better understood, the dictators of the future will doubtless learn to combine these tech­niques with the non-stop distractions which, in the West, are now threatening to drown in a sea of irrele­vance the rational propaganda essential to the mainten­ance of individual liberty and the survival of demo­cratic institutions.”

Another man of vision was President Dwight D. Eisenhower. As someone who understood the military industrial complex and the world of politics and power, he knew the danger of allowing the arms industry to dictate the foreign policy of the country. Maintaining a military empire bankrupted Rome and it is bankrupting the American empire. Eisenhower’s warning was unheeded.

“We have been compelled to create a permanent armaments industry of vast proportions. Added to this, three and a half million men and women are directly engaged in the defense establishment. We annually spend on military security more than the net income of all United States corporations. This conjunction of an immense military establishment and a large arms industry is new in the American experience. The total influence — economic, political, even spiritual — is felt in every city, every State house, every office of the Federal government. We recognize the imperative need for this development. Yet we must not fail to comprehend its grave implications. Our toil, resources and livelihood are all involved; so is the very structure of our society.

In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military industrial complex. The potential for the disastrous rise of misplaced power exists and will persist. The prospect of domination of the nation’s scholars by Federal employment, project allocations, and the power of money is ever present and is gravely to be regarded.”

When I was researching the similarities between the fall of the Roman Empire and our American Empire fall in progress, I stumbled across an essay written in 1956 by Ben Moreell called Of Bread and Circuses  

Toxic Bread, iGadgets, Circuses, & Zoloft

“The evil was not in bread and circuses, per se, but in the willingness of the people to sell their rights as free men for full bellies and the excitement of the games which would serve to distract them from the other human hungers which bread and circuses can never appease. The moral decay of the people was not caused by the doles and the games. These merely provided a measure of their degradation. Things that were originally good had become perverted and, as Shakespeare reminds us, ‘Lilies that fester smell far worse than weeds.'”Ben Moreell – 1956 – Of Bread and Circuses

There is nothing inherently evil about food, iPhones, professional sports, television, computers, music or medicine. Human beings need food to sustain them, entertainment to provide relaxation and diversion from their daily labors, and medicine to alleviate illness and prolong their lives. Only when the people allow themselves to be lured into servitude by malevolent purveyors of bread and circuses does the perversion of seemingly harmless things begin to fester and overwhelm a nation with the fetid stench of decay and decadence. The moral degeneration of the American populace, like the Roman people before them, happened slowly over time as they sold their liberty, freedom, and self-respect for full bellies, an endless array of modern day distractions, and promises from their highly educated rulers they would be taken care of and protected from all threats to their well-being, whether foreign, domestic, physical, mental, or social.

It did not happen all at once. It happened gradually over time. We allowed the weaker facets of our human nature to succumb to the pleasurable promises of a minority of power seeking manipulative men who always attempt to control and influence the majority because they believe they are wiser and deserving of riches, glory and supremacy. The greediest, most arrogant, ambitious and well educated amongst us tend to rise to the top in all societies. As Ben Franklin stated, only a virtuous people can keep sociopaths from gaining control of our political, economic and financial systems and perverting a republic built upon a foundation of free markets, liberty, and self-sufficiency.

“Only a virtuous people are capable of freedom. As nations become more corrupt and vicious, they have more need of masters.”Benjamin Franklin

Historian Tacitus noted, as Rome became more and more corrupt, the number of laws grew rapidly. The Roman aristocracy, through corruption and thievery achieved lofty status in Roman society. Senators and wealthy knights engaged in extensive practices of conspicuous consumption, creating palatial town houses and monumental “art villas” to demonstrate their high rank in society. The peasants sank into poverty, while being satiated with bread and circuses. And it was all done legally, just as it is being done legally today by our beloved aristocracy and their minions.

“The more corrupt the state, the more numerous the laws.” – Tacitus – The Annals of Imperial Rome

Has the proliferation of laws, rules, and regulations over the last century made us freer, safer and less corrupt?

The virtue of the American people has dissipated rapidly over the last century through their willful ignorance, laziness, apathy, vanity, greed and covetousness, while the true ruling power has consciously and intelligently manipulated the masses without them being aware they were being molded, controlled, dominated and influenced by Ivy League educated men of no conscious, empathy, or sense of decency. The paragraph below, written in 1928 by Edward Bernays, reveals the true nature of our “democracy” and our real masters:

“The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country. …We are governed, our minds are molded, our tastes formed, our ideas suggested, largely by men we have never heard of. This is a logical result of the way in which our democratic society is organized. Vast numbers of human beings must cooperate in this manner if they are to live together as a smoothly functioning society. …In almost every act of our daily lives, whether in the sphere of politics or business, in our social conduct or our ethical thinking, we are dominated by the relatively small number of persons…who understand the mental processes and social patterns of the masses. It is they who pull the wires which control the public mind.” – Edward Bernays – Propaganda

Bernays and his disciples believed the American citizenry nothing more than a herd of irrational animals that needed to be led by enlightened despots like him and other highly educated wealthy men who knew what was best in a democratic society. The term propaganda developed negative connotations after some Germans used it so effectively during the 1930s, so modern American despots changed the term to public relations. It’s all about the message. As media tools have become more technologically advanced and the study of human psychology perfected, the members of the invisible government have achieved their goal of governing, molding, and pulling the wires that control the public mind in a way that enriches them and their benefactors while satisfying the base needs of the masses and keeping them distracted with trivialities, technological wonders, and a myriad of bogeyman threats. These men have contempt for the common man. They have contempt for the U.S. Constitution. They have contempt for free markets. And they have control of our country.

Needs, Wants & Desires

The concept of bread and circuses ties closely to Maslow’s Hierarchy of Needs theory. The ruling class realizes the masses must be kept fed, clothed and housed or revolution would ensue. The human needs documented by Maslow were satisfied or not satisfied by humans prior to the 20th century. Once the ruling class gained control of the monetary system through their jurisdiction over the Federal Reserve and the fiscal system through their manipulation of taxes and spending, they were able to bribe the masses with their own money. The rise of the welfare state has not reduced poverty or boosted the standard of living of the poor. It has enslaved tens of millions at the basic human needs level. Once those in power had successfully bribed the masses with bread (SNAP), shelter (subsidized housing), subsistence (unemployment compensation & welfare), security (Social Security) and safety (Medicare, Medicaid), it was only necessary to keep them distracted with circuses to efficiently teach them to love their servitude.

“A really efficient totalitarian state would be one in which the all-powerful executive of political bosses and their army of managers control a population of slaves who do not have to be coerced, because they love their servitude.” – Aldous Huxley – Brave New World

abraham-maslows-hierarchy-of-needs1.preview.jpg

The invisible governing authorities don’t want the masses to actually satisfy their psychological and self-fulfillment needs. The last thing they want is an educated, aware, critical thinking, independent, courageous, self-reliant, civic minded populace questioning the motivations of their keepers. This is where the corporate fascists who control the mass media propaganda machine and the sickcare industrial complex have combined forces to create a painless concentration camp of prisoners enjoying their servitude and happy to sacrifice their liberty for perceived safety. An uneducated, obese, sickly, depressed, overly-medicated populace is not a threat to the ruling class. They have been conditioned and pharmacologically sedated to such an extent the governing class feels indestructible, displaying arrogance and hubris in dangerous doses.

“There will be in the next generation or so a pharmacological method of making people love their servitude and producing dictatorship without tears, so to speak, producing a kind of painless concentration camp for entire societies so that people will in fact have their liberties taken away from them but will rather enjoy it.” – Aldous Huxley

The concept of voluntary servitude has been a constant theme across the ages as most people want to be led, told what to do, and will not question or contest those in authority. Liberty and freedom require effort, sacrifice, honor and a people with a strong moral character. The Roman people succumbed to tyranny by abandoning their liberty to despots for a full belly and grand spectacles. The American people have succumbed to modern day banker, billionaire and politician oligarchs for a belly full of toxic corporate processed food, cable HDTV with 600 stations, iGadgets, a never ending supply of cheap Chinese produced crap at big box retail stores, Facebook, Twitter, 24 hour drive thru Dunkin Donuts joints, and an endless array of professional sporting events, all paid for with an infinite supply of cheap consumer debt from the Wall Street fraud machine. We live in a warfare/welfare surveillance state built on a foundation of debt, consumerism, and delusion, with no tears. We’ve learned to love our servitude.

French philosopher Etienne de La Boetie captured the degradation of the once noble Roman people five centuries ago, and his words ring true today as the American people have foolishly relinquished their liberty to a corporate aristocracy that has bankrupted the nation, debased the currency, pillaged the middle class and set in motion an irreversible decline of the empire.

“Plays, farces, spectacles, gladiators, strange beasts, medals, pictures, and other such opiates, these were for ancient peoples the bait toward slavery, the price of their liberty, the instruments of tyranny. By these practices and enticements the ancient dictators so successfully lulled their subjects under the yoke, that the stupefied peoples, fascinated by the pastimes and vain pleasures flashed before their eyes, learned subservience as naively, but not so creditably, as little children learn to read by looking at bright picture books. Roman tyrants invented a further refinement. They often provided the city wards with feasts to cajole the rabble, always more readily tempted by the pleasure of eating than by anything else.

The most intelligent and understanding amongst them would not have quit his soup bowl to recover the liberty of the Republic of Plato. Tyrants would distribute largess, a bushel of wheat, a gallon of wine, and a sesterce: and then everybody would shamelessly cry, ‘Long live the King!’ The fools did not realize that they were merely recovering a portion of their own property, and that their ruler could not have given them what they were receiving without having first taken it from them.” – Etienne de La Boétie – Discourse on Voluntary Servitude – 1548

We are fools to not realize the governing authorities who benevolently distribute bread and entitlements to the masses have already taken the money at gunpoint from the people, while syphoning off their cut, favoring their courtesans and taking away our liberties and freedoms. H.L. Mencken, who could match de La Boetie in contempt for the ignorant masses and corrupt politicians, understood our democracy was destined for the trash heap of history.

Democracy is a pathetic belief in the collective wisdom of individual ignorance. No one in this world, so far as I know—and I have researched the records for years, and employed agents to help me—has ever lost money by underestimating the intelligence of the great masses of the plain people. Nor has anyone ever lost public office thereby.” – H.L. Mencken – Notes on Democracy

In Part Three of this article I will address how the creation of the Federal Reserve has led to a century of currency debasement, mindless consumption and endless warfare, while impoverishing the masses and setting in motion the dynamics of empire collapse.

THANK THE MILITARY INDUSTRIAL COMPLEX FOR THE “SOARING” GDP

We don’t need no stinking wage growth or consumer spending. We’ve got our corporate arms dealers fighting evil terrorist around the globe with your tax dollars. That equals economic prosperity in our warfare/welfare empire of debt. Don’t forget to buy stocks with all your disposable income. Grandma Yellen says you need to accumulate more assets to become rich.

 

Why Did Q3 GDP Jump: Thank ISIS And The “War On Terror”

Tyler Durden's picture

As we noted previously, the main reason why Q3 GDP surprised to the upside was thanks to yet another accounting gimmick, where it wasn’t the US consumer leading to US growth, as has historically been the case, but because the government stepped up, and boosted GDP by the most since Q2 2009.

 

So just which aspect of government taxpayer fund recirculation was responsible for this sudden boost in US “growth” (leaving aside the philosophical debate whether government capital allocations ever lead to grwoth)?

The answer is shown in the chart below showing the quarterly change in US National Defense spending: at by $30 billion, it was the most since 2008!

In short: thank you ISIS and renewed war on terror.

And what is more disturbing, as we noted earlier, is that the Fed had this data when it decided yesterday to end QE and to present its “surprisingly hawkish” assessment of the economy, suggesting the Fed is comfortbale with defense spending as a marginal leader of US growth (and is also not seeing any snow whatsoever this winter)

So… the “Fed war put” anyone?

Source: St. Louis Fed

I THOUGHT WE DEFEATED THE TALIBAN 10 YEARS AGO

Do you ever get the feeling we don’t really want to defeat the Taliban, ISIS, Al Qaeda or any of our other made up mortal enemies and threats to our democracy? If we ever defeated these existential threats the military industrial complex profits would plunge. We can’t have that happen to our warfare welfare empire of debt. I wonder how the families of the thousands of men who have died over the last thirteen years feel about the fact they died in vain to sustain the profits of corporate arms dealers.

Taliban militants carried out attack on prosecutor’s office in northern Afghanistan on Monday. The four-hour battle claimed at least 10 lives and 10 more were wounded in the shootout.

According to deputy governor of Kunduz province, the attack began when a suicide bomber blew up a car at the gate of the compound in the city of Kunduz.

Taliban spokesman claims the attack was carried out in response to recent death sentences handed to movement prisoners.

AT LEAST $40 BILLION PER YEAR TO FIGHT “TERRORISTS” WE CREATED TO FIGHT OUR OTHER ENEMIES

It was about a year ago when the neo-cons and supporters of the military industrial complex (every Congressman with a defense contractor in their district and contributor to their re-election campaign) warned of the dire cuts to the Defense budget. It didn’t matter that they weren’t actually cuts. It was a slowing in the rate of increase. But who needs the truth when a good storyline will do.

Just as our beloved arms industry was going to see a slight drop in their obscene blood profits, a new enemy arose from nowhere. No one had ever heard of ISIS one year ago. Shitstain McCain was over in Syria taking pictures with a bunch of rag headed “freedom fighters” and Obama was trumping up false gassing charges against Assad.

We funneled arms and money to these “freedom fighters”. They have now somehow morphed into the dreaded ISIS army of beheaders. We now have Assad and ISIS as our sworn enemies, even though they are fighting each other. Turkey is our ally. The Kurds are our ally. ISIS and Turkey are fighting the Kurds. And Iran will always be our enemy. Russia is now an imminent threat to our freedom in the Ukraine.

This all makes sense. Right?

Now Obama and his new neo-con allies are committing to fight ISIS, Assad, the Taliban, Al Qaeda, Russian rebels, and the dastardly Iranians forever. That sounds cheap. The opening quote is $40 billion per year. Remember when Larry Lindsey was fired from the Bush White House when he estimated the total cost of the Iraq War would be $50 billion? The final tally will be in the $6 TRILLION range. Missed it by that much.

Do you think the initial estimate for fighting American made “terrorists” of $40 billion per year will be too high or too low? When one of our cruise missiles blows up one of the tanks we gave to Iraq, does that count as a double expense?

I always come back to who benefits from this shit. The military industrial complex is more powerful than you know. They are enriched by endless war. Peace leads to declining profits. Eisenhower was right. We didn’t listen.

“This conjunction of an immense military establishment and a large arms industry is new in the American experience. The total influence — economic, political, even spiritual — is felt in every city, every State house, every office of the Federal government. We recognize the imperative need for this development. Yet we must not fail to comprehend its grave implications. Our toil, resources and livelihood are all involved; so is the very structure of our society.

In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the militaryindustrial complex. The potential for the disastrous rise of misplaced power exists and will persist.

We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted. Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together.

The prospect of domination of the nation’s scholars by Federal employment, project allocations, and the power of money is ever present and is gravely to be regarded.”

 

Guest Post by Mike Shedlock

 

Defense Dept. to Request $30-40 Billion a Year to Fight ISIS; History Lessons

Anyone recall how the war in Iraq would pay for itself? That was the US Defense Department estimate in 2003.

Now some $3 trillion later (add in veterans’ benefits, depreciation of equipment, humanitarian aid, covert action, and paying for the military efforts of our coalition ‘partners’ and the Total Cost of Iraq, Afghan Wars is $4-6 Trillion.

Come Hell or High Water

That $4 to $6 trillion Iraq, Afghan cost projection was made in 2013. That estimate assumed the costs would be winding down now. They won’t.

On September 30, 2014 Vice President Joe Biden’s pledge to get out of Afghanistan “come hell or high water by 2014” came to an abrupt halt when President Obama agreed to a deal to leave US troops in the country until 2024 “at least“.

For details and an assessment of that announcement, please see “Come Hell or High Water” Promise Morphs Into “Infinity and Beyond”.

How Much Will Fighting ISIS Cost?

Boston Globe writer Linda J. Bilmes asks Fighting the Islamic State — how much will it cost?.

President Obama and his military top brass have pronounced that the effort to defeat the Islamic State will be “long” — translation: expensive. The Pentagon has admitted to spending over $1 billion so far, with the current pace running at some $10 million per day. Todd Harrison of the Center for Strategic and Budgetary Assessments believes the annual bill for military operations will range from $4 billion to $22 billion, depending on duration, scope, and the extent to which ground forces get involved — which is becoming increasingly likely. Obama has ruled out sending troops, but it is clear the Pentagon has not given up on boots on the ground — they just may not be worn entirely by Americans.

Twelve months ago, the wartime culture of “endless money,” as former Defense Secretary Robert Gates dubbed it, with its endless “emergency” funding from Congress (nearly $2 trillion in more than 30 special funding bills) — was finally coming to an end. The Beltway was filled with talk of belt-tightening at the Department of Defense, including a 10-year $497-billion cut imposed by the so-called sequester. The Pentagon was proposing to shrink the size of the armed forces, trim military compensation and benefits, and mothball expensive weapons and military installations left over from the Cold War.

But now that’s all so-last-fiscal-year. The new trend is ramping up Pentagon spending. At their press conference last week, Defense Secretary Chuck Hagel and Martin Dempsey, the Chairman of the Joint Chiefs of Staff, declared that they don’t have enough funding to conduct the operation against the Islamic State.

In addition, Congress is refusing to let the Pentagon make even modest changes to its current base benefit plan. This will surely encourage the department to ask for another blank check to pay for new operations. Requests are already mounting.

The combined cost of abandoning planned cutbacks at the Defense Department, new spending to combat the Islamic State, and extra foreign military assistance means that America will wind up spending up to $100 billion more on military activities than we had expected this year alone.

Washington assumes that we will simply borrow whatever is needed — and continue to pass the cost of today’s wars onto future generations. This feckless approach has already led to much higher national debt, as well as rampant waste and corruption in our military appropriations.

Financing the Iraq and Afghanistan conflicts with debt has hidden the true costs from public view. President Obama has just asked Americans to embark on another decade-long military engagement. He needs to propose a strategy for how it should be paid for, and what sacrifices will be required.

$100 Billion More Than Expected Already This Year Alone

Todd Harrison of the Center for Strategic and Budgetary Assessments believes the bill will “range from $4 billion to $22 billion” annually, even though we are going to spend $100 billion more this year on defense than expected.

How’s that work? I’ll tell you how: Money is pooled into an “Overseas Contingency Operation” slush fund and spent as the department wants. Moreover, veterans’ benefits, medical treatment and numerous other war costs don’t show up in any war-related buckets.

New U.S. Price Tag for the War Against ISIS: $40 Billion a Year

In a 100% guaranteed to be underestimated cost analysis, the Fiscal Times reports New U.S. Price Tag for the War Against ISIS: $40 Billion a Year.

With the war against ISIS off to a rocky start, there are signs that the Obama administration is getting ready to up the ante substantially on weaponry, manpower and aid to allies – at a cost of an additional $3o billion to $40 billion a year.

Earlier, Gordon Adams, a military analyst at American University, told The Fiscal Times that the mission to stop ISIS will cost $15 billion to $20 billion annually, based on his “back of the envelope” calculations. Other analysts have made similar forecasts. But based on soundings of the defense establishment, Adams said Thursday that the Defense Department would almost certainly request funding of twice that level later this year.

“I have consummate faith that they can get to $30 billion to $40 billion a year without breaking a sweat,” he added.

The estimated $30 billion to $40 billion of new spending would come on top of the Pentagon’s $496 billion fiscal 2015 operating budget for personnel and contractors and the roughly $58.6 billion in an “Overseas Contingency Operation” fund that is used to finance U.S. war operations in the Middle East.

The OCO, as it is known, has paid for the protracted U.S. military engagement in the Middle East with borrowing that adds to the long-term U.S. debt. If Adams’ projections are correct, then the OCO would total as much as $80 billion to $90 billion in the coming year.

However, House Speaker John Boehner and other congressional Republican leaders are skeptical that Obama’s strategy can work without substantially more resources – including more ground troops.

Iraq War: Predictions Made, and Results

Let’s take a look at previous predictions, when they were made, and how accurate they were, starting with a Christian Science Monitor report Iraq War: Predictions Made, and Results.

Ahead of and shortly after the US invasion of Iraq in 2003, a number of officials, including former Defense Secretary Donald Rumsfeld and his deputy Paul Wolfowitz suggested the war could be done on the cheap and that it would largely pay for itself. In October 2003, Rumsfeld told a press conference about President Bush’s request for $21 billion for Iraq and Afghan reconstruction that “the $20 billion the president requested is not intended to cover all of Iraq’s needs. The bulk of the funds for Iraq’s reconstruction will come from Iraqis — from oil revenues, recovered assets, international trade, direct foreign investment, as well as some contributions we’ve already received and hope to receive from the international community.”

In March 2003, Mr. Wolfowitz told Congress that “we’re really dealing with a country that could finance its own reconstruction.” In April 2003, the Pentagon said the war would cost about $2 billion a month, and in July of that year Rumsfeld increased that estimate to $4 billion.

I believe we all know how that turned out.

Lost Cause

On July 24, 2010 I wrote Afghanistan is a “Lost Cause”; Leaked Documents Show Futility of Afghanistan War

The questions on my mind are: How many trillions of dollars do we have to spend, how many lives need to be wasted, and how much longer are we going to be involved in the boondoggle known as Afghanistan?

The total amount of the waste and lives lost is unknown, but we now have an answer to my 2010 question: “how much longer are we going to be involved in the boondoggle known as Afghanistan?“.

The unfortunate answer is “until 2024 at least“.

How much will fighting ISIS it really cost? No one can answer that now, but a safe starting point for discussion is somewhere between 10 and 100 times initial projections.

Time for Self Assessment

In Iraq Splinters Into Pieces, Al Qaeda in Control of Several Cities, Kurds Take Oil City Kirkuk; Thank George Bush and the Neocons; Iraq Before and After I held the Bush Administration largely responsible for this mess.

Sure, president Obama made many mistakes but the initial, most damning mistake was the Iraq invasion and the overthrow of Saddam Hussein.

In a follow-up post, Assessing the Blame for Iraq: Bush, Obama, McCain, Others; Iraq Sunken Costs I asked for self-assessment.

Time for Self Assessment

I can and do blame Obama for countless things. But Republicans would be very wise to self-assess on Iraq, on nation building, and on warmongering in general.

Instead of self-assessment, warmongers want more war.

Deficit-Hawk Hypocrites

As is always the case, John McCain leads the war rally cry in the Senate.  In the House, Speaker John Boehner Says U.S. may have ‘no choice’ on combat troops.

Not once have these Republican deficit-hawk hypocrites said how they propose to pay for this. Not once has McCain ever placed the blame for ISIS where it belongs.

ISIS a U.S. Creation

ISIS is 100% a US creation. ISIS arose following inane US nation-building policies starting with the absurd belief the “Iraq war would pay for itself.

This self-made mess produced Strange Bedfellows: To Fight ISIS, US Now Supports Iranian Revolutionary Guard, Other Terror Groups.

I concluded “Strange Bedfellows” with a warning “Just remember … To make matters worse, you have to begin somewhere.”

History Lesson

I conclude this post with another history lesson: “No mess is ever so big that it cannot be made worse by throwing more money at it.”

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

Read more at http://globaleconomicanalysis.blogspot.com/2014/10/defense-dept-to-request-30-40-billion.html#LysFD3iEcecQxF6f.99

Pentagon War Plans in 2001: Iraq, Syria, Lebanon, Libya, Somalia, Sudan, & Iran

Everything is going according to plan. The military industrial complex must feed continuously like a shark, or it will die. When there are no real enemies, we just create them out of thin air (ISIS, Russia). It’s all part of the game plan. We don’t need no stinkin Constitution.

Via Police State USA

U.S. General Wesley Clark (ret.) revealed that he was informed following 9/11 of a dramatic plan of aggressive war.

General Wesley Clark (Source: YouTube / Democracy Now

U.S. General Wesley Clark (ret.) revealed that he was informed, in the days following 9/11/2001, that the Department of Defense was planning wars with Iraq, Syria, Lebanon, Libya, Somalia, Sudan, & Iran.

Clark was regarded as an esteemed commander during his service from 1966 to 2000, and obtained the rank of 4-star general. He discussed the matter in an interview with Amy Goodman of Democracy Now on March 2, 2007.

Here is the transcript of Gen. Clark’s account.

CLARK: About 10 days after 9/11, I went to the Pentagon, and I saw [Defense] Secretary [Donald] Rumsfeld and Deputy Secretary [Paul] Wolfowitz. I went downstairs to say hello to some of the people on the joint staff that used to work for me.

One of the generals called me in and said, “Sir, you gotta come in and talk to me.” I said, “Sir, you’re too busy.” And he said, “No, no! We’ve made the decision — we’re going to war with Iraq!” This is on or about the 28th of September. I said, “We’re going to war with Iraq? Why!?” He said, “I don’t know!” He said, “I guess they don’t know what else to do.” So I said, “Did they find some information connecting Saddam to al Qaeda?” He said, “No, no, there’s nothing new that way. They just made the decision to go to war with Iraq.” He said, “I guess its like we don’t know what to do about terrorists, but we’ve got a good military and we can take down governments.”

So I came back to see him a few weeks later, and by that time, we were bombing in Afghanistan. And I said, “Are we still going to war with Iraq?” And he said, “Oh, its worse than that.” He said– he reached over on his desk and he picked up a piece of paper, and he said, “I just got this from upstairs,” meaning the Secretary of Defense’s office. And he said, “This is a memo that describes how we’re going to take out seven countries in five years. Starting with Iraq, and then Syria, Lebanon, Libya, Somalia, Sudan, and finishing off Iran.”

What can be made of this?

One explanation, as some suggest, is that it is not unexpected for the Pentagon to maintain ongoing contingency plans; keeping ready to pursue various far-fetched wars at all times. But even if that much is true, why would this seven-country invasion plan be put into official memos in the weeks following the 9/11/2001 attack? Those countries had nothing to do with the hijackings — yet American generals were being briefed about serious plans to attack. Why?

The proposed plan obviously did not pan out exactly as written, but it may have very well given us a look at the agenda of some very bloodthirsty policy-makers, as they tried to exploit the anguish felt following the collapse of the Twin Towers.

Disturbingly, we cannot even be sure that “the plan” is not still being pursued. The Pentagon has maintained a steady course of aggressive foreign interventionism throughout both the Bush and Obama administrations. As we have witnessed, much of what General Clark revealed has ultimately moved forward, albeit with a modified timeline.

Iraq’s government was toppled by the U.S. during the bloody full-scale invasion in 2003. U.S. commandos have been operating clandestinely in Sudan since at least 2005. The U.S. has been operating Somalia since 2007, clandestinely and through missile strikes. Libya’s government was toppled with the help of U.S. missile support in 2009. The U.S. began its bombing campaign in Syria in 2014. Iran’s fate remains yet to be determined, but was a frequent target of pro-war rhetoric in the ’12 election cycle.

If one subscribes to the idea that it is the U.S. military’s proper role (and the U.S. taxpayers’ economic burden) to clean up every undemocratic cesspool on the planet, then this brand of foreign policy might make sense or seem appealing. But even if that much is accepted, one must acknowledge that the leaders and policymakers clamoring for war are the same folks who gave us the Patriot Act, the NDAA, the ACA, the TSA, mass domestic spying, giant bailouts, exponential debt growth, and so many other harmful policies.

Americans’ patriotism and support of democracy have long been exploited by leaders with a far less altruistic foreign policy agenda. The country is not being kept in a state of perpetual conflict because it is good for the USA, good for the world, or destined to promote freedom.

Could it be that the purpose of pursuing war is to be at war? War is the perfect tool to centralize and expand government, degrade civilian liberties, suppress dissenting voices, maintain high levels of state secrecy, unaccountably disperse large sums of taxpayer money, militarize law enforcement, spy on the people, among other things. As Randolph Bourne famously wrote, “War is the health of the state.”

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.

Military Industrial Complex Explained in 7 Minutes

Guest Post by Kevin at Eco Explained

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The Military Industrial Complex Explained in 7 Minutes

In 2014 the US defense budget was over half a trillion dollars, which was more than the next 8 countries combined. The top 5 contractor budgets were:

Lockheed Martin which raked in $15 billion, Boeing $12 billion, General Dynamics $9 billion, Raytheon $6 billion, and Northrup Grumman $5 billion.

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When we compare this vast sum of technological, military investment to the greatest threat to western society in the history of the world, ISIS, as implied by Chuck Hagel, one should question why we should be scared at all?

It is estimated that ISIS has an annual military budget of just $25-30 million.

So if we make the impossible assumption (sarcasm) that money buys you weapons, an army, and a military threat, realistically we don’t have to fear China, or Russia, let alone ISIS.

Are you fucking kidding me Hagel!?!?!?! ISIS

US-UNREST-IRAQ-SYRIA-MILITARY

Please America Wake TFU!

Politicians and the media have an insatiable fetish for pushing photos of black garbed, desert Rambos doing flips in an outdated jungle gym with AK 47’s slung around their backs, while we have gun ships loaded with laser guided, gps guided, heat-seaking hellfire fuck missiles just miles off shore in the Persian Gulf.

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You can sleep easier at night than any human being in the history of the planet, because your country has spent more money on a military budget than was ever necessary for a society for the next 1,000 years.

The only thing Americans should be fearing is hyper-inflation due to a financial collapse of the US dollar from so much irrational, unproductive spending.

The economy is wasting away while the crony capitalists in Washington are most concerned about how to keep the public in a constant state of fear so that they can provide the solution and the spending. Of course every penny will be contracted out to a trusted insider who is then expected to give them a kick back in the next election so that the circle jerk can continue forever.

Well guess what, I’m done.

I don’t fear shit, except unconstitutional abuses of power. Keep babbling about the next Armageddon Washington. I’ll be on my back deck smoking a cigar, mindlessly watching the birds enjoy the seeds from the bird feeder.

Just stop spending hard earned tax payer money on horseshit we don’t need. Your like a poor diabetic child waiting on the corner for the ice-cream man with a credit card.

 

HELLFIRE DEMOCRACY AMERICAN STYLE IN IRAQ

Mission Accomplished!!!

The Military Industrial Complex gets another $700 million. This is what constitutes success in the eyes of Dark Lord Dick Cheney. Yes, this is American style democracy. Invade another country under false pretenses, destroy all of their infrastructure and military hardware. Pay mercenary armies and unscrupulous contractors billions to rebuild what you blew up. Then leave and let the country descend into sectarian violence and civil war. Then you sell weapons to both sides in the civil war and reap the billions in profits for your arms dealers. These arms dealers then funnel “contributions” to all the upstanding politicians who vote to allow these arm sales.

They hate us for our freedoms.

The United States is preparing to sell the Iraqi government 5,000 Hellfire missiles through a proposed $700 million deal intended to equip Baghdad with additional power as militants from the Islamic State continue to wage a campaign across the region. RT’s Anastasia Churkina explains.

OUR TOTALITARIAN FUTURE – PART TWO

In Part One, I asked questions your keepers don’t want to answer truthfully, while providing the contextual setting for how our over-populated world is progressing relentlessly towards a future of war and totalitarianism.

Totalitarianism Now

“Where the republican or limited monarchical tradition is weak, the best of constitutions will not prevent ambi­tious politicians from succumbing with glee and gusto to the temptations of power. And in any country where numbers have begun to press heavily upon avail­able resources, these temptations cannot fail to arise. Over-population leads to economic insecurity and so­cial unrest. Unrest and insecurity lead to more con­trol by central governments and an increase of their power. In the absence of a constitutional tradition, this increased power will probably be exercised in a dictatorial fashion.” Aldous Huxley – Brave New World Revisited – 1958

         

Huxley wrote his dystopian masterpiece in 1931 before the rise of Stalin, Hitler and Mao and their murderous totalitarian empires, sustained by torture, mass murder, surveillance, and fear. Orwell wrote 1984 in 1948, after living through the nightmare of World War II and witnessing the malevolent systematic terrorism inflicted upon innocent populations by psychopathic tyrants like Hitler and Stalin. World War II killed 65 million people. Stalin’s purges killed 20 million Russians, and Mao murdered 45 million of his own people. It appeared that Orwell’s gruesome vision of a future of brutality, surveillance, and fear would come true.

Instead, Huxley’s vision gained ground in the post war world of cheap oil, mass production, consumerism, and TV advertising. It was found that government through terror works on the whole less well than government through the non-violent manip­ulation of the environment and of the thoughts and feelings of individual men, women and children. Propaganda, amusements, materialism, easily accessible debt, and relentless media messaging convinced the masses to love their enslavement and never dream of revolution. It worked as long as energy and debt remained cheap and plentiful.

The 4.4 billion increase (157%) in the world’s population since Huxley’s warning in 1958 is attributable to vast supplies of cheap easily accessible oil, natural gas and coal, which have allowed technological and agricultural advancements that have vastly expanded food production, water purification, global transportation, and medical advancements. With the peak in traditional worldwide oil production reached around 2005, and modest subsequent production increases obtained only by mining tar sands, fracking shale and drilling in deep water at much higher production costs, the era of cheap plentiful energy has come to an end.

Propaganda and storylines about vast reserves and energy independence fail to acknowledge the concept of Energy Returned on Energy Invested (EROEI). Once it requires investing more than one barrel of oil in energy to extract one barrel of oil, the game is over. We are approaching the limits of growth because our remaining energy resources will require much more capital investment and higher prices for companies to make that investment. Oil prices were $25 per barrel when George Bush and the neo-cons launched their Iraq Freedom campaign in 2003. Eleven years later, with U.S. oil production at 44 year highs and consumption at 2000 levels, a barrel of oil is over $100 per barrel. The combination of increased demand from developing countries, vastly higher production costs, and global unrest in the areas of the world storing “our” oil under their sand will put a floor on prices, with spikes upward as resource wars flare up around the globe.

It is not a coincidence that the world economic system collapsed in 2008 after oil prices topped $140 per barrel. World food prices also spiked to all-time highs in 2008. The surge in food prices in 2011 to new highs was the impetus for the Arab Spring and social unrest across the Middle East and Africa. The FAO World Food Index spiked to levels only exceeded in 2011 earlier this year. Oil prices have surged as high as $106 and have averaged over $100 in 2014. Do you think it is just a coincidence that social unrest across the Middle East, Africa, Asia and Europe has surged in the last few months? Rising prices and the increasing scarcity of food, water and energy resources push the desperately poor towards revolution.

 

Societal strife, economic decline, poverty, lawlessness, and resource deprivation in third world countries result in dependency upon a central authority to sustain the masses. In the poorest countries without a long history of democracy, the people turn to a strong leader to save them. Before long too much power is accumulated in too few hands and totalitarian regimes are born. The world is awash in the blood spilled by dictators (North Korea, Egypt, Cuba, Saudi Arabia, Zimbabwe, Iran, Tunisia, Syria, Sudan) and presidents in name only (China, Vietnam, Nigeria, Turkey, Ukraine, Venezuela, Russia, Argentina).

Dreadfully poor people with no hope for a better future turn to radical religion, extremist ideas, and psychotic leaders. A full belly trumps freedoms and liberties. It is not surprising that despots proliferate in the poorest countries with the highest population growth rates. The so called developed world in the U.S. and Europe had been able to sidestep and even take advantage of these developing countries until the 2008 financial collapse. The oligarchs have treated the third world as slave plantations to be reaped, plundered and pillaged. Their banker solution to a crisis caused by the fraudulent issuance of debt products has been to redouble their looting and pillaging campaign through the issuance of even more debt in order to further enrich themselves at the expense of the many.

Huxley saw it beginning to happen even during the late 1950’s:

“Meanwhile impersonal forces over which we have almost no control seem to be pushing us all in the direction of the Brave New Worldian nightmare; and this impersonal pushing is being consciously acceler­ated by representatives of commercial and political organizations who have developed a number of new tech­niques for manipulating, in the interest of some minor­ity, the thoughts and feelings of the masses.” Aldous Huxley – Brave New World Revisited – 1958

I think Huxley underestimated the lengths to which a minority of criminal wealthy bankers, their crony capitalist corporate co-conspirators, and feckless bought off politicians would go in their sociopathic manipulation of the masses to gorge themselves upon the world’s resources and wealth. In 1958 the manipulators only had TV in its infancy and independent newspapers published by journalists who attempted to report the truth. They’ve come a long way baby.

The Deep State, Silent Government, Oligarchs, TPTB, or whatever term you want to employ to our Brave New World Controllers have mastered the art of propaganda, manipulation, distraction, and social engineering to such an extent the majority of Americans have come to love their techno-narcissistic, debt saturated, welfare/warfare, surveillance state. When a minority of evil minded men gain control of a nation’s currency, own and control the few remaining propaganda news outlets, run the mega-corporations selling toxic poison processed food and iGadgets to the masses on debt issued by Wall Street banks, pay-off the politicians writing legislation and tax codes, and brainwash the youth through government controlled education, your Brave New World nightmare has arrived.

Huxley believed that over-population was not an immediate threat to the personal freedoms of Americans and Europeans due to their long history under democratic constitutions. Of course our national debt of $276 billion in 1958 was only 57% of our annual GDP of $482 billion. The population of 175 million could easily be sustained, with ample supplies of energy, food and jobs. The standard of living for families rose consistently and an economy based upon savings, capital investment, and producing things flowed wealth across all classes – raising all boats. Banks accumulated deposits from citizens and leant money to small businesses. There were no stock options, derivatives, stock buybacks, or trading profits. People borrowed sparingly and saved for the things they wanted.

Huxley predicted trouble by the beginning of the twenty first century if the population of the U.S. continued to outpace the available resources to support that population. He was right again. The party ended in 2000.The National Debt has soared to $17.6 trillion, or 104% of GDP in 2014. Why did the debt go up by a factor of 64 while GDP only advanced by a factor of 35? In 1958, prior to the blossoming of the welfare/warfare state, there were little to no unfunded liabilities. Today the total exceeds $200 trillion. A country adding debt at this astronomical rate is a country consuming far more than it is producing. Depletion of resources, overconsumption, and economic decline lead to debt expansion and centralized government control. When 20% of all households depend upon food stamps to survive, your country has too many mouths to feed and a failing economic system designed to serve the oligarchs and impoverish the peasants.

Consumer debt outstanding in 1958 totaled $48 billion, all non-revolving debt mainly for auto purchases. The credit card did not exist. Consumer debt outstanding today totals $3.2 trillion. Has this 6,667% increase in consumer debt benefitted the average person or Jamie Dimon and his ilk? Is it a rational choice of consumers in a free capitalist market or is it a result of coordinated actions by the banking cabal and their captured government benefactors to enslave the masses in debt while keeping them dumbed down and distracted by electronic gadgets produced in slave labor camps overseas under the guise of globalization? Huxley didn’t anticipate Federal Reserve bankers and cowardly captured politicians purposefully inflating away 88% of the U.S. dollar’s purchasing power as they expanded the welfare/warfare state through monetary manipulation, abandonment of gold backed currency and unfettered debt expansion. The result is real wages haven’t advanced in the last 40 years, while corporate profits reach record heights and a small cadre of oligarchs reap the rewards of debt enslavement of the many.

 

The Ponzi scheme system created by the invisible “leaders” of the supposedly free developed world required never ending growth to support the never ending issuance of debt in order to keep the fleecing of the masses operation running smoothly. This is where increasing population and resource depletion have thrown a monkey wrench into their printing press operation. The autocrats harvested energy and minerals resources from third world countries, while utilizing the catch phrase of globalization, as a cover for their wage arbitrage mechanism to continue their worldwide pillaging scheme. The Ivy League educated moguls are extremely smart when it comes to figuring out new and creative ways to screw the common folk, but their unparalleled hubris and arrogant disregard for humanity blind them to the ultimate consequences of their malevolent machinations. There will be blood and they will not escape unscathed. War is coming, but not the war they anticipate.

The definition of totalitarianism is a political system in which the state holds total authority over the society and seeks to control all aspects of public and private life wherever possible. Our two party farce of a political system is aligned to control our lives through laws, regulations, rules, bylaws, procedures, tax codes, taxation, inflation, and debt, enforced by government apparatchiks, bureaucrats, politicians, bankers, police state thugs, and when all else fails – the military. While the masses were distracted by facebooking, texting, twittering, instagramming, taking selfies, playing Words with Friends, engaging make believe enemies on their PS3 or Xbox, watching the Kardashians on one of their 700 cable TV stations, or shopping for Chinese produced crap at one of our 1.5 million cookie cutter chain retail boxes, those in control of this country covertly turned the nation into a surveillance state while militarizing local police forces. They know the endless growth story is over. Our oppressors fear the repercussions when the masses realize it’s all been a big lie and they are left impoverished and hungry. They are attempting to instigate foreign wars, while preparing for the coming civil war.

The confusion, chaos, mayhem and war currently shaking the foundations of our planet are a direct result of too many people jammed into too small of a space with too few resources and too few opportunities for economic advancement. Poor, deprived, hungry people with nothing to lose begin to lose it. Revolution, civil unrest, radicalism, the rise of extremists and despots, and totalitarian regimes are the result. The invasion of Iraq was about oil. The overthrow of Gaddafi was about oil. The ongoing attempt to overthrow Assad is about a natural gas pipeline to Europe in order to isolate the Russians. The Ukrainian coup is about Russian natural gas and oil. The sanctions and saber rattling over Iran’s nuclear program is really about their oil. The United States is utilizing their military industrial complex and CIA assets to instigate turmoil and war around the world in an effort to gain control over the dwindling energy resources in the Middle East and Africa. Russia and China are blocking U.S. efforts at every turn, as the world inches ever closer to a major resource war.

Huxley’s Brave New World dystopian America had a good run from 1950 until 2000. Our keepers kept us fat, dumb, distracted, and in debt up to our eyeballs. Since 2000 Orwell’s 1984 dystopian Surveillance States of America seems to be taking shape, under the watchful eye of our very own Big Brother, the NSA. Fear, punishment, slogans (See Something Say Something) and appeals to non-thinking patriotism have replaced freedom, liberty, individual rights, the Constitution, personal responsibility for our own lives and questioning authority. The propagandists created the War on Terror as a way to keep the ignorant masses fearful and cowering behind the skirts of Big Brother. The 2008 financial collapse was another crisis that couldn’t go to waste. The Federal Government has expanded the spending of your tax dollars by 40% since 2007. The DHS concentrates on the internal enemy – you. The military industrial complex creates new foreign enemy threats every day – Hussein, Gaddafi, Ahmadinejad, Assad, and now Putin.

The monetary and fiscal policies of the country have remained in permanent crisis mode because the Ponzi scheme can’t be maintained without a constant debt fix. As our permanent state of crisis devolves into war, our remaining liberties will be stripped away in the name of safety, security and unquestioned support of the state. Huxley knew that we would consume, obey and submit until dictatorship became almost inevitable. Will you sit idly by while a small cabal of power hungry men destroys our country? Will you send your sons off to wars manufactured by tyrants as cannon fodder to further enrich the military industrial complex? Will you make a stand when they begin to round up subversives, dissenters, and malcontents under the guise of protecting you from domestic terrorists? Will you choose liberty and freedom over repression and descent into captivity and totalitarianism? The choice is yours.

“But liberty, as we all know, cannot flour­ish in a country that is permanently on a war footing, or even a near-war footing. Permanent crisis justifies permanent control of everybody and everything by the agencies of the central government. And permanent crisis is what we have to expect in a world in which over-population is producing a state of things, in which dictatorship becomes almost inevitable.” Aldous Huxley – Brave New World Revisited – 1958

 

Are you a believer?

“One believes things because one has been conditioned to believe them.” – Aldous Huxley – Brave New World

Or a truth seeker?

“You shall know the truth and the truth shall make you mad.” – Aldous Huxley

FOURTH TURNING ACCELERATING

“In retrospect, the spark might seem as ominous as a financial crash, as ordinary as a national election, or as trivial as a Tea Party. The catalyst will unfold according to a basic Crisis dynamic that underlies all of these scenarios: An initial spark will trigger a chain reaction of unyielding responses and further emergencies. The core elements of these scenarios (debt, civic decay, global disorder) will matter more than the details, which the catalyst will juxtapose and connect in some unknowable way. If foreign societies are also entering a Fourth Turning, this could accelerate the chain reaction. At home and abroad, these events will reflect the tearing of the civic fabric at points of extreme vulnerability –problem areas where America will have neglected, denied, or delayed needed action.” – The Fourth Turning – Strauss & Howe – 1997

This past week saw an event revealing the cluelessness and ignorance of the linear thinking establishment. They are oblivious to the cyclicality of history and unaware of their precarious situation, as the mood of the country and the world portends their demise. Eric Cantor, the ultimate establishment neo-con Republican House Majority Leader, was crushed in a primary by a completely unknown economics professor, outspent by Cantor $4.9 million to $123,000. Cantor spent more at steakhouses than David Brat spent on his entire campaign. Cantor, a lackey for Blackstone, Goldman Sachs, Israel, and dozens of other mega-corporations, was the first House Majority leader defeated in a primary since the position was created in the 1890s. He won his last primary by 60%.

This was as big a shock to the Republican establishment as it was to the Democratic establishment, the mainstream corporate media establishment, and the Tea Party establishment that didn’t provide David Brat one red cent of their vast horde of contributions. They are now scrambling to generate a storyline explaining this unexplainable development as if it was entirely predictable. These wealthy, myopic, propaganda peddling, purveyors of the status quo just felt the foundation of their world shudder beneath them. Like a volcano, with pressure building within, the world as we know it is about to blow. Who gets devastated by the massive explosion and flow of molten lava is yet to be determined, but there is nothing the establishment can do to stop the eruption. This entire Deep State hierarchy has been developed over decades, as they have flawlessly implemented Edward Bernays teachings from the Propaganda playbook.

“The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country. …We are governed, our minds are molded, our tastes formed, our ideas suggested, largely by men we have never heard of. This is a logical result of the way in which our democratic society is organized. Vast numbers of human beings must cooperate in this manner if they are to live together as a smoothly functioning society. …In almost every act of our daily lives, whether in the sphere of politics or business, in our social conduct or our ethical thinking, we are dominated by the relatively small number of persons…who understand the mental processes and social patterns of the masses. It is they who pull the wires which control the public mind.” – Edward Bernays – Propaganda – 1928

The linear thinkers, who constitute the invisible government and unelected true ruling power, are flabbergasted their game plan, which has worked for the last seven decades, is failing to have the usual sway over the normally compliant masses. Lies, misinformation, deception, propaganda, easy debt, cheap oil, endless commercial expansion, relentless marketing, never ending war, politicians selected by bankers and mega-corporations, tax code created to benefit the .01%, and laws written by the lobbyists for the oligarchs designed to control the plebs and enrich the modern aristocracy, made the world go round until 2008. Linear thinkers in government, business, banking and media have been perpetuating the falsehood of a return to normalcy, recovery, and linear progress. They are willfully ignorant of history because acknowledging its cyclicality would be admitting how precarious their positions of power, wealth, and control truly are.

History does not proceed in a straight line of forward advancement. It has a seasonal nature geared to the 80 year life cycle of human beings. The most basic lesson of history is we never seem to learn the lessons of history. A period of Crisis arrives like Winter, approximately 60 years after the resolution of the prior Crisis, with a climax occurring approximately 80 years after the prior Crisis climax. The generational dynamics based upon human life cycles have lined up once again into Crisis mode. Anyone who hasn’t sensed the mood change in the country since 2008, hasn’t been paying attention. The linear thinking establishment refuses to accept the inevitability of their existing paradigm collapsing in a chaotic whirlwind of violence, death on a grand scale and decisive war. The existing social order is always swept away during a Fourth Turning.

Saeculum (climax year) Crisis (Full Era) Time from one Crisis climax to next Crisis climax
Revolutionary (1781) American Revolution(1773–1794)
Civil War (1863) Civil War(1860–1865) 82 years
Great Power (1944) Great Depressionand World War II(1929-1946) 81 years
Millennial (2025?) Global Financial Crisis(2008–2029?) 81 years?

The Global Financial Crisis, which began in September 2008, marked the beginning of a likely two decade long episode of fierce winter-like blizzard conditions that will get progressively worse as this Fourth Turning churns toward its bloody climax. The evil wealthy men and their paid off pawns in politics and the media who constitute the invisible government, governing behind the scenes, molding minds, forming tastes and suggesting ideas to the gullible masses, will not relinquish their wealth and power without a fight. They have been utilizing all emergency monetary and fiscal levers, while conducting a data disinformation campaign and utilizing their control of the dying legacy media to keep the masses distracted, entertained and confused.

The establishment has convinced a vast swath of the public to actually believe 0% interest rates for the last 5 years, adding $1 trillion per year to the already Himalayan national debt, allowing the Federal Reserve buy $3 trillion of toxic debt from their Wall Street banking cabal owners, while creating a high rate of inflation in energy, food, healthcare and tuition costs, and negative growth in real wages, is somehow beneficial to them and reflects a return to normalcy. The current state of our economic, financial, political and judicial systems, along with the fraying social fabric of society reflects EXTREME dysfunction and in no way exhibits anything resembling a normal state of affairs. The government apparatchiks, corporate media talking heads, Wall Street captured economists, and lackeys for billionaire oligarchs are highly paid liars using every Bernaysian trick to manipulate the beliefs, desires, and prejudices of the willfully ignorant masses. They capitalize on the cognitive dissonance and normalcy bias being practiced by the majority of people in the country. Like a dog chasing its tail, they have the public up in arms about meaningless social issues and ignoring the looting of the country by sociopathic bankers.

Those in power need to sell their storyline of advancement, despite the overwhelming evidence of a societal implosion and economic regression for the 99.99%. They need to distract the masses with inconsequential emotional issues like gay marriage, mass murderers, climate change, party politics, racism, and phantom terror threats, so the masses don’t focus on how badly they are being screwed by the One Party invisible government. For those who have been too dumbed down by our government public education system to even comprehend anything beyond a third grade level, we have The Kardashians, Bridezilla, Duck Dynasty, I Didn’t Know I Was Pregnant, iGadgets, Twitter, Facebook, professional sports, Hollywood blockbusters, and toxic fast food paid for with your EBT card. Our world is besieged by triviality, plagued by idiocy, inundated with propaganda, and consumed with consumption.

In a country of 318 million people, the few believe they must mold the minds of the masses in order for society to function smoothly. Of course this is a huge lie. They need to mold those minds in order to retain their power, wealth, control. They are focused on the daily dose of lies, mistruths, disinformation, and distractions required to keep the masses anesthetized. They have ignored the lessons of history and the big picture driving the Crisis events which will change the world over the next fifteen years. Fourth Turnings don’t calm down, fizzle out, or revert to what happened in the prior twenty years, just as the unyielding harsh Winter cannot revert to the glorious days of Fall or the sweltering days of Summer. There is no escaping the dire, deadly and dangerous times directly ahead of us.

“Reflect on what happens when a terrible winter blizzard strikes. You hear the weather warning but probably fail to act on it. The sky darkens. Then the storm hits with full fury, and the air is a howling whiteness. One by one, your links to the machine age break down. Electricity flickers out, cutting off the TV. Batteries fade, cutting off the radio. Phones go dead. Roads become impossible, and cars get stuck. Food supplies dwindle. Day to day vestiges of modern civilization – bank machines, mutual funds, mass retailers, computers, satellites, airplanes, governments – all recede into irrelevance. Picture yourself and your loved ones in the midst of a howling blizzard that lasts several years. Think about what you would need, who could help you, and why your fate might matter to anybody other than yourself. That is how to plan for a saecular winter. Don’t think you can escape the Fourth Turning. History warns that a Crisis will reshape the basic social and economic environment that you now take for granted.” – Strauss & Howe The Fourth Turning

Strauss and Howe wrote their epic historical treatise in 1997 and their predictions, based upon centuries of generational analysis, have been uncannily accurate. The predictions are not event based, but based upon generational mood and core elements of Crisis, which were predictable over a decade before the 2008 start to this Crisis. The core elements of Debt, Civic Decay, and Global Disorder were evident to anyone with a functioning critical thinking brain, not in the employ of the establishment. These core elements are front and center today, as the Fourth Turning gains momentum like a gathering winter storm. The captured mainstream media does their utmost to obscure, downplay, and ignore these issues, but alternative truth telling websites like Zero Hedge, Mike Krieger’s Liberty Blitzkrieg, Mike Shedlock, John Rubino’s Dollar Collapse, Jim Kunstler, John Hussman, Jesse’s Cafe Americain, Charles Hugh Smith, Karl Denninger, and number of other freedom minded websites keep the spark of truth alive for those seeking it. A perusal of headlines from these sites over the last week or so provides the true nature of this worsening Fourth Turning Crisis:

Debt

Mindblowing Fact Of The Day: China Has Over 52 Million Vacant Homes

The Subprime Auto-Lending Credit Bubble Is Bursting

China HSBC PMI Misses; Economy Contracts For 5th Month In A Row

Will Spain Default?

Fed Prepares to Maintain Record Balance Sheet for Years

Steve Forbes Warns Of Economic “Catastrophe” Due To Fed’s Dollar Debasement

Obama Unveils Student Loan Debt Bubble Bailout

America’s Insatiable Demand For More Expensive Cars, Larger Homes And Bigger Debts

China Scrambling After “Discovering” Thousands Of Tons Of Rehypothecated Copper, Aluminum Missing

Western Banks Scramble As China’s “Rehypothecation Evaporation” Goes Global

Consumer Credit Has Fifth Biggest Monthly Jump In History; Revolving Credit Soars By Most Since November 2007

Abenomics’ Legacy: Japan’s Greatest “Misery” In 33 Years

NIRP Has Arrived: Europe Officially Enters The “Monetary Twilight Zone”

EU Warns Greece Is “A Cause Of Serious Concern” As Top Tax-Collector Resigns

Why Central Bank Stimulus Cannot Bring Economic Recovery

Summer Gas Prices Highest Since 2011 As Oil Hits 9-Month Highs

It Was A Reeeeeally Bad Winter: JPM Cuts Q1 GDP From -1.1% To -1.6%

How The Fed Feeds The Sharks, While Shafting Wage Earners And Savers

Fed’s Bubble Finance Is Primary Cause of Massive Wealth Gains At The Top

Former ECB Chief Economist Says Central Bank Run Monetary System Is “Pure Fiction”

More On The China Property Bubble: April New Housing Starts Down 25%; Beijing/Shanghai Sales Down 50%

What Happens After The Bubble Bursts: 85% Of Pension Funds Could Fail Due To An Era Of Niggardly Returns

Civic Decay

Across America, Police Departments Are Quietly Preparing For War

Meet The “Minerva Research Initiative” – The Pentagon’s Preparation For “Mass Civil Breakdown”

The Obama Administration Is Forcing Local Cops To Stay Silent On Surveillance

In 33 U.S. Cities, Feeding The Homeless Has Been Criminalized

Obama Popularity Plunges To New Low: “No Longer Likeable Enough”

Historic Loss: House Majority Leader Cantor Loses Virginia Primary To Tea Party’s Brat

Suspect Yells “Tell The Police, The Revolution Has Started” Before Shooting Spree In Las Vegas WalMart

Two Thirds Of Gen X Households Have Less Wealth Than Their Parents Did At The Same Age

7 In 10 Americans Believe The Crisis Is Not Over Or Worst Is Yet To Come: 52% Can’t Afford Their Homes

1 In 4 Obamacare Signups Are Faulty – But, We Are Sure Obama Never Knew Anything About It Until Now

Fed Warns The Plunge In “Routine” Jobs Won’t Slow Down Anytime Soon

US Finally Recovers All Jobs Lost Since 2007 While People Not In Labor Force Increase By 12.8 Million

Two-Thirds Of Americans Do Not Back Obama’s Decision On Bergdahl

Hiring In The US Remains Far Below Pre-Recession Levels

Half The Country Makes Less Than $27,520 A Year And 15 Other Signs The Middle Class Is Dying

The Rich Get Richest: Household Net Worth Rises To All Time High Courtesy Of $67 Trillion In Financial Assets

Challenger Job Cuts Soar 45%; Most Layoffs Since Feb 2013

It’s Not Just Europe; As Many As 16 California Counties May Seek Secession From The State

America’s Insanely Complex And Endemically Corrupt Tax Code: Mother Lode Of Crony Capitalist Plunder

Global Disorder

Al-Qaeda Jihadis Loot Over $400 Million From Mosul Central Bank, Seize Saddam’s Hometown

Al Qaeda Militants Capture US Black Hawk Helicopters In Iraq

Iraq Update: Kurds Take Kirkuk, Al Qaeda Surges Toward Baghdad

“Well-Armed” Taliban Tried To Hijack Airplane Leading To Pakistan Airport Shootout

Gruesome Footage Of ISIS Atrocities Reveals Al Qaeda Jihadists “Will Stop At Nothing”

Ukraine Military Transport Plane Shot Down, 49 Killed

Marc Faber Blasts “American Military Presence In Asia Is Completely Unacceptable”

B-1 Stealth Bomber “Friendly Fire” Strike Kills 5 US Soldiers In Afghanistan

World Needs Record Saudi Oil Supply as OPEC Convenes

Déjà vu: echoes of pre-crisis world mount

Chinese military spending exceeds $145 billion, drones advanced: U.S.

Ukraine Closes 8 Border Crossings On Reports Of Russian Troop Movement

Firefight Underway As Russian “Rebels” Cross Border Into Ukraine

US Begins Delivering F-16s To Iraq This Week, A Decade After It Wiped Out Iraq’s Air Force

Two Ukraine Helicopters Shot Down: Watch As Gunship Engages Eastern Militia In Intense Fighting

Saudi Arabia Reveals Surge In MERS Deaths: One Third Of Infected Patients Die

Japan Base Wages Decline 23 Months In A Row

Obama Calls for $1 Billion Europe Security Fund; Will Increase U.S. Military Presence in Eastern Europe

China Sends 4 More Fighter Jets To Oil Rig Area As Vietnam Threatens Legal Action

“Political Earthquake” – Nigel Farage “Big Winner” In Local Elections

Do these headlines indicate a lessening or deepening of the ongoing Crisis? You won’t see these truthful headlines in the mainstream captured media. You will see feel good headlines touting non-existent economic recoveries, decreasing unemployment rates with record levels of non-working Americans, and storylines of government, corporate and consumer austerity as debt levels reach all-time highs. You will see stories scorning Edward Snowden as a traitor for exposing the highest levels of the United States government as criminals for shredding the Fourth Amendment to the U.S. Constitution. You will see articles hyping one hundred years of shale oil and gas as energy prices approach record highs and the point of peak cheap oil has been passed. You will see publications owned by billionaires peddling hogwash about fantastic Wall Street profits entirely dependent upon mark to fantasy accounting and accounting journal entries relieving loan loss reserves as loan losses rise. You will see hyperbolic fear mongering dreck about foiled terrorist plots concocted by the FBI and DHS. You will see stories about the evil Russians and evil Chinese as our CIA promotes the overthrow of democratically elected officials in countries around the globe. You will see stories about the dangers of foreign countries conducting cyber-warfare against the U.S. as our government intercepts every electronic communication of our allies and citizens. It’s as if we are lost in a blizzard of lies.

Debt, Civic Decay, Global Disorder

Propaganda and the molding of minds cannot change the course of history. Those in power can ignore the facts, but they can’t change the facts. During the “austere” period from 2009 through until today, total credit market debt in the U.S. has expanded from $53.4 trillion to $59.4 trillion. It now stands at 350% of GDP, even after the government added $500 billion out of thin air to GDP to further their deception of recovery. The U.S. national debt is at a record $17.5 trillion and goes up by $2.0 billion per day. This doesn’t include the $200 trillion of unfunded liabilities politicians have committed taxpayers to pay over the next few decades. Corporate debt is at record highs as CEO’s borrow to buy back their stock at record highs in order to boost EPS and drive their compensation higher.

US total debt 2014

Consumer debt has surged to new highs reaching $3.2 trillion, as government pushed subprime student loan debt and government peddled subprime auto loan lure more math challenged dupes into the banker web of debt. Even credit card debt surged in May as people can no longer make monthly payments for energy, food, rent, and healthcare. Retailers continue to report horrific profits as disposable income has been disposed of by the Federal Reserve’s QE and ZIRP “solutions”. The immense levels of debt plague the entire world as total global debt now surpasses $230 trillion, 313% of world GDP. The 40% surge in global debt since the 2008 debt created collapse is unprecedented in its scope and lunacy. Trying to resolve a debt problem created by criminal Wall Street bankers by allowing Wall Street controlled central bankers, politicians, and government bureaucrats to issue more debt, reduce interest rates to zero, and enrich the oligarchs, will end in catastrophe. The house of cards is teetering as trust dissipates, rehypothecated assets evaporate, the suppression of price discovery fails and the rigged stock market crashes for the third time in fourteen years.

The 2008 global financial crash was the catalyst for this Fourth Turning and the next leg down will unleash the fury of the masses as their remaining wealth, along with their hopes and dreams are obliterated. The civic decay is unmistakably visible, like a fissure in the road after an earthquake, and has left the masses angry, confused, dependent, ignorant, distracted, and suspicious. The extreme and growing wealth inequality driven by Federal Reserve policies, corporate lobbyist written government regulations and tax laws, and bankers controlling the political, economic, financial, and media levers has reached levels previously associated with collapse and revolution. The greed, hubris and arrogance of the .01% will lead to their downfall.

Screen Shot 2014-03-29 at 9.23.25 PM

A country with 102 million of its 247 million working age population not working is a powder-keg and the politicians are acting like slow witted monkeys lighting matches. With 20% of the 145 million jobs part-time, more than half low paying service industry jobs, real wages lower than they were in 1998, and a median salary of $25,000, it’s understandable why 20% of the population relies on food stamps to survive. The discontent is growing. We got a preview of how the establishment will deal with disgruntlement during the 2011 Occupy Wall Street protests. Liberal Democrat mayors aligned with Fox News neo-cons, Wall Street bankers, and police state thugs to eradicate, beat, tear gas, and pepper spray young people exercising their right to free speech protesting the wolves of Wall Street, who had pulled of the largest heist in human history with absolutely no consequences for their criminality. Both OWS and the Tea Party were co-opted by the establishment in short order and have been used by the One Party of oligarchs as a means to divide and conquer, by keeping the masses blaming liberal or conservative phantoms for the state of disunion.

The seemingly never ending revelations from the hero of this Fourth Turning – Edward Snowden – of government surveillance regarding every electronic communication of every American by the NSA is proof of a complete disregard for Constitutionally guaranteed protections by the powers that be. The current administration in conjunction with the hacks from the two headed party ignore, flaunt and show disdain for the Bill of Rights and legal precedent as they run roughshod over the citizens. The transformation of our republic into an authoritarian surveillance police state is almost complete.

The militarization of local police forces by the DHS, military training exercises in major cities, and plans being drawn up by the authorities to confront civil unrest all point towards the coming breakdown of civil society. The complete lockdown of Boston to apprehend two teenage cooking utensil terrorists was a dry run and probably gave the oligarchs confidence in their plan, as Bostonians cowered in their homes as heavily armed police thugs pissed on the Fourth Amendment by conducting door to door searches. If you listen closely, you can hear the fabric of our civilization being torn asunder.

The past few weeks have seen global disorder reach new heights, as Iraq has become Mission Un-Accomplished, the Ukraine explodes into civil war as Russia cuts off their natural gas, violent protests continue to rock Brazil, Egypt, Spain, Greece, France, Turkey and a myriad of other hotspots around the world. The very same forces Obama, McCain and the military industrial complex have been arming in Syria to fight a dictator who was our ally, are now ransacking Iraq, murdering the people we put into power when we deposed another dictator who had been our ally when he was fighting our sworn enemy – Iran. It seems Iran is now helping Iraq fight these jihadists, as they slowly but surely gain control over Iraq. The EU has papered over their national insolvency problems with more debt, while imposing austerity measures on the peasants. See French Revolution for the ultimate resolution of this banker-centric solution. The endemic fraud in China, along with an imploding real estate market, and corruption on an epic scale are creating a perfect storm which will derail the China miracle meme.

Meanwhile, the new dictator in Egypt who overthrew the democratically elected government, after our former dictator ally was deposed when Obama refused to support him, has clamped down on the citizens with his military force. The Ukraine is being torn apart after the CIA and their counterparts in the EU undermined the democratically elected government and started a civil war to undermine Russian influence in that country. To an impartial observer, you might think the American Empire is purposely sowing seeds of discontent, war, and disorder around the globe. Never ending war benefits the military industrial complex, as tremendous profits are generated from the sale of arms to all parties involved. Iraq and Syria are good for the bottom line of the U.S. Defense Industry. War and global disorder also benefit the worldwide banking cabal, as the only way to fund these misadventures is through debt. As we all know, debt is what makes this world go round – until it doesn’t.

There has been a virtual mainstream media blackout regarding the Ukraine as government forces bomb and murder civilians. The billionaires running America need to support the billionaire president of the Ukraine because he is one of them. Truth has no place in modern governmental affairs. The mainstream media ignores the fact the United States has armed Sunni terrorists in Syria who are now on the verge of overrunning Baghdad, as they slaughter Iraqi Shiites by the thousands. They ignore the fact that Iraq was a modern, stable, non-religious, oil producing nation under Hussein, with no Al Qaeda or sectarian violence. The United States invaded a sovereign country under false pretenses, wasted over $1 trillion of precious national wealth, killed over 100,000 Iraqis, sustained over 37,000 physical casualties, untold numbers of mental casualties, and now Iraq is dissolving into a quagmire of religious violence threatening oil supplies and driving prices higher. After 13 years and 21,000 casualties in Afghanistan, the Taliban are stronger than ever as we declare victory and slink away. Libya has been another feather in the cap of American foreign policy as we deposed another former ally dictator and have left the country in disarray and civil war. Just because the American corporate media doesn’t report these facts, doesn’t make them not so.

It should be clear to anyone willing to open their eyes and not be influenced by the establishment propaganda that this Fourth Turning is entering a new ominous phase, as the 2008 Global Financial Crisis catalyst has ignited a volcanic eruption which has put tremendous strain on the areas of extreme vulnerability – debt, civic decay, global disorder. The few aware Americans who frequent truth telling websites are frustrated and impatient, waiting for the tsunami of change to sweep over the world. History operates at its own cyclical pace. An accelerated Fourth Turning would likely not be a positive development. The Civil War Crisis was accelerated, resulting in 700,000 deaths in four years. With the worldwide proliferation of nuclear missiles, this Fourth Turning could be over with the push of a button. I don’t think anyone is rooting for that outcome.

You can easily be distracted by the day to day machinations of evil men, relentless propaganda, meaningless distractions, and various forms of bread and circuses. But history is unforgiving. The details and events will be different, but the path of this Crisis will follow past Crisis periods. The worldwide debt bubble will burst. The resulting loss of wealth, jobs, entitlements and trust will ignite mass civil disorder as years of civic decay lead to a swift societal collapse. With China also entering a Fourth Turning, a global debt implosion, resource wars breaking out, religious extremism, and nationalistic drums beating, the likelihood of global war is high.

For some perspective, six years into the last Fourth Turning in 1935, GDP had risen by 30% from its 1933 low and FDR’s New Deal was supposedly lifting the country from its depths. In reality, the population was experiencing a worsening depression and a few years later a world war killed 65 million people. After six years the Civil War Crisis was resolved with 5% of the nation’s male population killed, a president assassinated, and the South left in ruins. This Fourth Turning will proceed along its destined path at its own pace. The molten ingredients of debt, civic decay and global disorder are conjoining in an explosive concoction leading to a conflagration which will flow across the globe on a scale not seen since the Second World War. There is no escaping the trials and tribulations awaiting us. The outcome is uncertain. It could end in glory or destruction. Individual sacrifice, shared burdens, courageous stands and inspired leadership will be required to survive the perilous trials ahead.

I see the bad moon arising

I see trouble on the way

I see earthquakes and lightnin’

I see bad times today

Creedence Clearwater Revival

“Imagine some national (and probably global) volcanic eruption, initially flowing along channels of distress that were created during the Unraveling era and further widened by the catalyst. Trying to foresee where the eruption will go once it bursts free of the channels is like trying to predict the exact fault line of an earthquake. All you know in advance is something about the molten ingredients of the climax, which could include the following:

  • Economic distress, with public debt in default, entitlement trust funds in bankruptcy, mounting poverty and unemployment, trade wars, collapsing financial markets, and hyperinflation (or deflation)
  • Social distress, with violence fueled by class, race, nativism, or religion and abetted by armed gangs, underground militias, and mercenaries hired by walled communities
  • Political distress, with institutional collapse, open tax revolts, one-party hegemony, major constitutional change, secessionism, authoritarianism, and altered national borders
  • Military distress, with war against terrorists or foreign regimes equipped with weapons of mass destruction” –  The Fourth Turning – Strauss & Howe – 1997

WE’RE #1

War – What’s it Good For?

Corporate Profits

Is the American Empire policing the world or inciting war around the globe?

Are Obama, McCain and the rest of the One Party politicians keeping the American people safe or putting the world in danger by proliferating weapons of destruction across the earth?

The proof is in the profit figures of the U.S. military industrial complex.

“WAR is a racket. It always has been. It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives. A racket is best described, I believe, as something that is not what it seems to the majority of the people. Only a small “inside” group knows what it is about. It is conducted for the benefit of the very few, at the expense of the very many. Out of war a few people make huge fortunes.”

Smedley Butler

MEET THE MILITARY INDUSTRIAL COMPLEX

If you were wondering who benefits from our endless wars and far flung military empire, look no further. These are the mega-corporations who love war. They profit from death and destruction. You provide the tax dollars to pay them and shed the blood on battlefields on their behalf. Do you think they are upset about Putin’s incursion into Crimea? Do you think these companies played any part in fanning the flames of revolution in the Ukraine?

Do you think their lobbyists in Washington DC push for further involvement in Syria, Iraq and Afghanistan? Do you think they pay the neo-con pundits on Fox to spew propaganda about imminent threats to our security?

The incestuous relationship between the Pentagon and these companies would make your skin crawl. There are literally thousands of former officers and government bureaucrats employed by these traitorous fucks. When you read one of the hundreds of Op-Eds about the horrific defense cuts, you can be sure they were funded by these pricks.

Know your real enemy. We did not heed Eisenhower’s words.

“This conjunction of an immense military establishment and a large arms industry is new in the American experience. The total influence — economic, political, even spiritual — is felt in every city, every State house, every office of the Federal government. We recognize the imperative need for this development. Yet we must not fail to comprehend its grave implications. Our toil, resources and livelihood are all involved; so is the very structure of our society. In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the militaryindustrial complex. The potential for the disastrous rise of misplaced power exists and will persist. We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted. Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together.”

 

1. Lockheed Martin
> Arm sales 2012: $36 billion
> Total sales 2012: $47.2 billion
> 2012 profit: 2.7 billion
> 2012 employment: 120,000

In 2012, Lockheed Martin Corp. (NYSE: LMT) led the world in arms sales, even as its arms sales declined slightly from $36.2 billion in 2011 to $36 billion in 2012. Such sales accounted for 95% of the Maryland company’s total revenue. The company, which employed 120,000 workers as of 2012, specializes in aerospace, global security and information technology systems for the military. It is also known for the C-5 Galaxy Class airplane — the largest air military transport plane in the world. Lockheed Martin has been the largest recipient of government procurement contracts and the top-ranked company on the Washington Technology Top 100 for 19 consecutive years. However, this has also left the company exposed to changes in the federal budget. In October 2012, at the request of President Obama, the company held off on firing thousands of workers that it previously warned it would have to lay off due to military spending cuts.

 

2. Boeing
> Arm sales 2012: $27.6 billion
> Total sales 2012: $81.7 billion
> 2012 profit: $3.9 billion
> 2012 employment: 174,400

Although arms sales accounted for just 34% of Boeing’s revenue in 2012, Boeing Co. (NYSE: BA) was still the world’s second largest military contractor that year. In all, the company’s total revenue was nearly $82 billion in 2012. The company’s commercial airplane segment accounted for a large portion of its sales, with $49.1 billion in revenue that year. Boeing ended 2012 with $3.9 billion in profit and with more than 174,400 employees. Last year, Boeing and union workers in Washington state engaged in heated negotiations, with Boeing threatening to move jobs away from the state unless union workers agreed to concessions related to their pension plan.

3. BAE Systems
> Arm sales 2012: $26.9 billion
> Total sales 2012: $28.3 billion
> 2012 profit: $2.6 billion
> 2012 employment: 88,200

BAE Systems is the largest non-U.S. military contractor. It had $26.9 billion in arms sales in 2012, which represented some 95% of the company’s total sales. However, the British company’s year-over-year arms sales declined that year from $29.2 billion in 2011. Cuts by England’s Ministry of Defence have taken a toll on the company. As the U.K.’s largest military contractor, it received 13.7% of procurement funds spent in 2012 to 2013. In May 2012, the company announced it would close its Armstrong plant — which made tanks for the nation in World War I and had been in operation since 1847 — and cut 330 jobs as a result. BAE’s failed $45 billion merger with fellow defense contractor EADS in 2012 also hurt prospective sales of England’s main fighter jet, the British Tornado, for which BAE makes the parts.

4. Raytheon
> Arm sales 2012: $22.5 billion
> Total sales 2012: $24.4 billion
> 2012 profit: $1.9 billion
> 2012 employment: 67,800

While Raytheon’s 2012 arm sales of $22.5 billion were slightly lower compared to 2011, they remained high enough for the company to rank fourth among arms companies. The company, which traces its history back to 1922, assisted the United States in multiple wars, as well as the Apollo 11 moon landing. Raytheon Co. (NYSE: RTN) provides services in a variety of fields, from air and missile defense to radar and cybersecurity. In all, 92% of the company’s sales came from arms sales in 2012. But while the U.S. has cut defense spending in recent years, Raytheon has benefited from a surge in exports to foreign countries, which has helped to offset federal government belt-tightening.

 

5. General Dynamics
> Arm sales 2012: $20.9 billion
> Total sales 2012: $31.5 billion
> 2012 profit: -$332 million
> 2012 employment: 92,200

Like many of its defense-sector competitors, Virginia-based General Dynamics Corp. (NYSE: GD) felt the sting of the decreased U.S. military spending. The company, which specializes in aircraft, land and expeditionary combat vehicles, and shipbuilding, lost $332 million in 2012, and its arms sales totaled $20.9 billion, down from $23.3 billion the year before. The loss was due, in large part, to a $2 billion goodwill charge related to declining business opportunities in the defense sector. In its most recent year, the company reported a 16.4% drop in sales in its combat systems group, for which the U.S. Army is major customer.

 

6. Northrop Grumman
> Arm sales 2012: $19.4 billion
> Total sales 2012: $25.2 billion
> 2012 profit: $2.0 billion
> 2012 employment: 68,100

Virginia-based Northrop Grumman Corp. (NYSE: NOC) specializes in producing unmanned systems, missile defense radars and critical incident response systems. In February 2012, the U.S. Navy awarded the company a contract worth as much as $638 million to provide Navy ships with a networked common computing environment. In January of that year, the Navy also began using Northrop’s high-altitude drone to monitor activity in Iran. Last year, the company was awarded nearly $8.6 billion in such contracts, second-most of any company in the nation. The company’s arms sales, which totaled more than $19 billion in 2012, accounted for 77% of its total revenue that year. The company’s 2012 profit was nearly $2 billion.

 

7. United Technologies
> Arm sales 2012: $13.5 billion
> Total sales 2012: $62.2 billion
> 2012 profit: $5.2 billion
> 2012 employment: 218,300

United Technologies Corp.’s (NYSE: UTX) 2012 arms sales increased from the year before, the only company in the top 10 ranking with a year-over-year increase in its arms sales. The company recorded $13.5 billion in arms sales in 2012, up from $11.6 billion in 2011. The company’s total profit that year was $5.2 billion, third among all arms companies. Its Sikorsky division, known for the Black Hawk and Seahawk military helicopters, accounted for $4.5 billion in arms sales that year. Its Pratt & Whitney division, which produces aircraft engines, accounted for $3.7 billion in 2012 arms sales. The company also sold parts of its Hamilton Sundstrand subsidiary in July 2012 for $3.5 billion to a venture led by private equity managers, The Carlyle Group and BC Partners. The sale helped United Technologies fund its more-than $16 billion purchase of aircraft parts maker Goodrich to expand further into the commercial aerospace sector.

 

8. L-3 Communications
> Arm sales 2012: $10.8 billion
> Total sales 2012: $13.1 billion
> 2012 profit: $782 million
> 2012 employment: 51,000

L-3 Communications Holdings Inc. (NYSE: LLL) moved down a notch in the rankings from the previous year. The company’s 2012 arms sales totaled $10.8 billion, down from $12.5 billion the year before. Still, arms sales accounted for 82% of L-3′s total 2012 sales. The company has four main business units: secure communications, electronics systems, platform and logistical solutions, and national security solutions. In July 2012, L-3 spun off its government services business into a standalone company, called Engility. With the spinoff, L-3 aimed to limit its exposure to cuts in government spending on defense contractors.

Read more: Companies Profiting the Most From War – The Boeing Company (NYSE:BA) – 24/7 Wall St. http://247wallst.com/special-report/2014/03/05/companies-profiting-the-most-from-war/#ixzz2v7pedx8a
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