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Paul Craig Roberts

Institute for Political Economy
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» Why Disinformation Works — Paul Craig Roberts

By: pcr3| May 23, 2013 | Categories: Articles & Columns | Tags: 9/11, Boston Marathon bombing, Chen Guangcheng, Dzhokhar Tsarnaev, Peggy Noonan, Tamerlan Tsarnaev, Terry Holdbrooks, | Print This Article Print This Article

Have you ever wondered how the government’s misinformation gains traction?

What I have noticed is that whenever a stunning episode occurs, such as 9/11 or the Boston Marathon bombing, most everyone whether on the right or left goes along with the government’s explanation, because they can hook their agenda to the government’s account.

The leftwing likes the official stories of Muslims creating terrorist mayhem in America, because it proves their blowback theory and satisfies them that the dispossessed and oppressed can fight back against imperialism.

The patriotic rightwing likes the official story, because it proves America is attacked for its goodness or because terrorists were allowed in by immigration authorities and nurtured by welfare, or because the government, which can’t do anything right, ignored plentiful warnings.

Whatever the government says, no matter how problematical, the official story gets its traction from its compatibility with existing predispositions and agendas.

In such a country, truth has no relevance. Only agendas are important.

A person can see this everywhere. I could write volumes illustrating how agenda-driven writers across the spectrum will support the most improbable government stories despite the absence of any evidence simply because the government’s line can be used to support their agendas.

For example, a conservative writer in the June issue of Chronicles uses the government’s story about the alleged Boston Marathon bombers, Dzhokhar and Tamerlan Tsarnaev, to argue against immigration, amnesty for illegals, and political asylum for Muslims. He writes: “Even the most high-tech security systems imaginable will inevitably fail as they are overwhelmed by a flood of often hostile and dangerous immigrants.”

The writer accepts all of the improbable government statements as proof that the brothers were guilty. The wounded brother who was unable to respond to the boat owner who discovered him and had to be put on life support somehow managed to write a confession on the inside of the boat.

As soon as the authorities have the brother locked up in a hospital on life support, “unnamed officials” and “authorities who remain anonymous” are planting the story in the media that the suspect is signing written confessions of his guilt while on life support. No one has seen any of these written confessions. But we know that they exist, because the government and media say so.

The conservative writer knows that Dzhokhar is guilty because he is Muslim and a Chechen. Therefore, it does not occur to the writer to wonder about the agenda of the unnamed sources who are busy at work creating belief in the brothers’ guilt. This insures that no juror would dare vote for acquittal and have to explain it to family and friends. Innocent until proven guilty in a court has been thrown out the window. This should disturb the conservative writer, but doesn’t.

The conservative writer sees Chechen ethnicity as an indication of guilt even though the brothers grew up in the US as normal Americans, because Chechens are “engaged in anti-Russian jihad.” But Chechens have no reason for hostility against the US. As evidence indicates, Washington supports the Chechens in their conflict with Russia. By supporting Chechen terrorism, Washington violates all of the laws that it ruthlessly applies to compassionate Americans who give donations to Palestinian charities that Washington alleges are run by Hamas, a Washington-declared terrorist organization.

It doesn’t occur to the conservative writer that something is amiss when martial law
is established over one of America’s main cities and its metropolitan area, 10,000 heavily armed troops are put on the streets with tanks, and citizens are ordered out of their homes with their hands over their heads, all of this just to search for one wounded 19-year old suspect. Instead the writer blames the “surveillance state” on “the inevitable consequences of suicidal liberalism” which has embraced “the oldest sin in the world: rebellion against authority.” The writer is so pleased to use the government’s story line as a way of indulging the conservative’s romance with authority and striking a blow at liberalism that he does not notice that he has lined up against the Founding Fathers who signed the Declaration of Independence and rebelled against authority.

I could just as easily have used a left-wing writer to illustrate the point that improbable explanations are acceptable if they fit with predispositions and can be employed in behalf of an agenda.

Think about it. Do you not think that it is extraordinary that the only investigations we have of such events as 9/11 and the Boston Marathon bombing are private investigations, such as this investigation of the backpacks: http://whowhatwhy.com/2013/05/20/official-story-has-odd-wrinkles-a-pack-of-questions-about-the-boston-bombing-backpacks/

There was no investigation of 9/11. Indeed, the White House resisted any inquiry at all for one year despite the insistent demands from the 9/11 families. NIST did not investigate anything. NIST simply constructed a computer model that was consistent with the government’s story. The 9/11 Commission simply sat and listened to the government’s explanation and wrote it down. These are not investigations.

The only investigations have come from a physicist who proved that WTC 7 came down at free fall and was thus the result of controlled demolition, from a team of scientists who examined dust from the WTC towers and found nano-thermite, from high-rise architects and structural engineers with decades of experience, and from first responders and firefighters who were in the towers and experienced explosions throughout the towers, even in the sub-basements.

We have reached the point where evidence is no longer required. The government’s statements suffice. Only conspiracy kooks produce real evidence.

In America, government statements have a unique authority. This authority comes from the white hat that the US wore in World War II and in the subsequent Cold War. It was easy to demonize Nazi Germany, Soviet Communism and Maoist China. Even today when Russian publications interview me about the perilous state of civil liberty in the US and Washington’s endless illegal military attacks abroad, I sometimes receive reports that some Russians believe that it was an impostor who was interviewed, not the real Paul Craig Roberts. There are Russians who believe that it was President Reagan who brought freedom to Russia, and as I served in the Reagan administration these Russians associate me with their vision of America as a light unto the world. Some Russians actually believe that Washington’s wars are truly wars of liberation.

The same illusions reign among Chinese dissidents. Chen Guangcheng is the Chinese dissident who sought refuge in the US Embassy in China. Recently he was interviewed by the BBC World Service. Chen Guangcheng believes that the US protects human rights while China suppresses human rights. He complained to the BBC that in China police can arrest citizens and detain them for as long as six months without accounting for their detainment. He thought that the US and UK should publicly protest this violation of due process, a human right. Apparently, Chen Guangcheng is unaware that US citizens are subject to indefinite detention without due process and even to assassination without due process.

The Chinese government allowed Chen Guangcheng safe passage to leave China and live in the US. Chen Guangcheng is so dazzled by his illusions of America as a human rights beacon that it has never occurred to him that the oppressive, human rights-violating Chinese government gave him safe passage, but that Julian Assange, after being given political asylum by Ecuador is still confined to the Ecuadoran embassy in London, because Washington will not allow its UK puppet state to permit his safe passage to Ecuador.

Perhaps Chen Guangcheng and the Chinese and Russian dissidents who are so enamored of the US could gain some needed perspective if they were to read US soldier Terry Holdbrooks' book about the treatment given to the Guantanamo prisoners. Holdbrooks was there on the scene, part of the process, and this is what he told RT: “The torture and information extraction methods that we used certainly created a great deal of doubt and questions in my mind to whether or not this was my America. But when I thought about what we were doing there and how we go about doing it, it did not seem like the America I signed up to defend. It did not seem like the America I grew up in. And that in itself was a very disillusioning experience.” http://rt.com/news/guantanamo-guard-islam-torture-608/

In a May 17 Wall Street Journal.com article, Peggy Noonan wrote that President Obama has lost his patina of high-mindedness. What did Obama do that brought this loss upon himself? Is it because he sits in the Oval Office approving lists of US citizens to be assassinated without due process of law? Is it because he detains US citizens indefinitely in violation of habeas corpus? Is it because he has kept open the torture prison at Guantanamo? Is it because he continued the war that the neoconservatives started, despite his promise to end it, and started new wars?

Is it because he attacks with drones people in their homes, medical centers, and work places in countries with which the US is not at war? Is it because his corrupt administration spies on American citizens without warrants and without cause?

No. It is none of these reasons. In Noonan’s view these are not offenses for which presidents, even Democratic ones, lose their high-minded patina. Obama can no longer be trusted, because the IRS hassled some conservative political activists.

Noonan is a Republican, and what Obama did wrong was to use the IRS against some Republicans. Apparently, it has not occurred to Noonan that if Obama--or any president--can use the IRS against opponents, he can use Homeland Security and the police state against them. He can use indefinite detention against them. He can use drones against them.

All of these are much more drastic measures. Why isn’t Peggy Noonan concerned?
Because she thinks these measures will only be used against terrorists, just as the IRS is only supposed to be used against tax evaders.

When a public and the commentators who inform it accept the collapse of the Constitution’s authority and the demise of their civil liberties, to complain about the IRS is pointless.





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» No Bear Market In Gold — Paul Craig Roberts

By: pcr3| May 20, 2013 | Categories: Articles & Columns | Tags: kingworldnews,


You know that gold bear market that the financial press keeps touting? The one George Soros keeps proclaiming? Well, it is not there. The gold bear market is disinformation that is helping elites acquire the gold.

Certainly, Soros himself doesn’t believe it, as the 13-F release issued by the Securities and Exchange Commission on May 15 proves. George Soros has significantly increased his gold holding by purchasing $25.2 million of call options on the GDXJ Junior Gold Miners Index. http://bullmarketthinking.com/soros-reports-over-239mm-in-gold-positions-buys-25mm-in-call-options-on-juniors/

In addition the Soros Fund maintains a $32 million stake in individual mines; added 1.1 million shares of GDX (a gold miners ETF) to its holdings which now stand at 2,666,000 shares valued at $70,400,000; has 1,100,000 shares in GDXJ valued at $11,506,000; and 530,000 shares in the GLD gold fund valued at $69,467,000. [values as of May 17]

The 13-F release shows the Soros Fund with $239,200,000 in gold investments. If this is bearish sentiment, what would it take to be bullish?

The misinformation that Soros had sold his gold holdings came from misinterpreting the reason Soros’ holdings in the GLD gold trust declined. Soros did not sell the shares; he redeemed the paper claims for physical gold. Watching the gold ETFs, such as GLD, being looted by banksters, Soros cashed in some of his own paper gold for the real stuff.

The giveaway that Soros is extremely bullish on gold comes not only from his extensive holdings, but also from his $25.2 million call option on junior gold stocks. This is a highly leveraged bet on the weakest gold mines. With high production costs and falling gold price from constant short selling in the paper market, Soros’ bet makes no sense unless he thinks gold is heading up as the short raids concentrate gold in elite possession.

In previous articles I have explained how heavy short-selling triggers stop-loss orders and margin calls on investors in gold ETFs. Scared out of their shares or forced out by margin calls, investors’ add to the downward price pressure caused by the shorts. Bullion banks and prominent investors such as Soros are the only ones who can redeem GLD shares for physical metal. They purchase the shares that are sold in response to the falling gold price, and present the shares for redemption in gold metal.

Insiders familiar with the process describe it as looting the ETFs of their gold basis.

In my last column I described how the orchestration of a falling gold price in the paper market protects the dollar’s value from the Federal Reserve’s policy of printing 1,000 billion new ones annually. The other beneficiary of the operation is the financial elite who buy up at low prices the ETF shares sold into a falling market and redeem them for gold. Like all other forms of wealth in the West, gold is being concentrated in fewer hands, while the elite shout “bear market, get out of gold.”

The orchestrated decline in gold and silver prices is apparent from the fact that the demand for bullion in the physical market has increased while short sales in the paper market imply a flight from bullion. As a hedge fund manager told me, it is a Wall Street axiom that volume follows price. Bull markets are characterized by rising prices on high volume. Conversely bear markets feature declining prices on low volume. The current bear market in gold consists of paper gold declining steadily while demand has escalated rapidly for physical metal. This strongly indicates that demand for physical gold continues to be in a bull market despite the savage attacks on paper gold.

If the orchestration is apparent to me, a person with no experience as a gold trader, it certainly must be apparent to federal regulators. But don’t expect any action from the Commodities Future Trading Corporation. It is headed by a former Goldman Sachs executive.

And don’t expect any investigation from the financial press. The financial press sees a bear market while supplies of bullion decline, premiums over spot rise, and even publicly declared bears such as George Soros make highly leveraged bets that will fail in the absence of a bull market in gold.
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About Dr. Paul Craig Roberts

Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. His latest book, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West is now available.

May 23, 2013
Why Disinformation Works — Paul Craig Roberts
May 20, 2013
No Bear Market In Gold — Paul Craig Roberts
May 18, 2013
Washington Signals Dollar Deep Concerns — Paul Craig Roberts
May 13, 2013
Gangster State America — Paul Craig Roberts
May 10, 2013
How Elites and Media Minimize Dissent and Bury Truth — Paul Craig Roberts
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Washington’s Presumption — Paul Craig Roberts
May 6, 2013
May, 2013, King World News Interviews with PCR
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The Financial Press–A Disinformation Machine — Paul Craig Roberts
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April 19, 2013
Boston Marathon Bombing
April 16, 2013
Update to the Update: The Attack on Gold — Paul Craig Roberts
April 13, 2013
Assault On Gold Update — Paul Craig Roberts
April 12, 2013
Fed Orchestrated Smash On Gold
April 11, 2013
PCR interview with Greg Hunter–Government Suppresses Gold Price
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The Assault On Gold — Paul Craig Roberts
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The Treason of Intellectuals — Chris Hedges
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Interview–Economic Disaster Approaching
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PCR interviewed by KPFA California
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PCR interview on GoldSeek
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The Corbett Report Interviews PCR on 9/11 Cover-up
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PCR Interview with Alex Jones–Tripple Bubble Implosion
March 25, 2013
King World News Interview withPCR–Fed Desperate To Avoid Collapse
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King World News interview with PCR — The Crisis Waiting To Happen
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