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.

The post Why Disinformation Works — Paul Craig Roberts appeared first on PaulCraigRoberts.org.

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.

The post No Bear Market In Gold — Paul Craig Roberts appeared first on PaulCraigRoberts.org.

Quantitative Easing is the term given to the Federal Reserve’s policy of printing 1,000 billion new dollars annually in order to finance the US budget deficit by purchasing US Treasury bonds and to keep the prices high of debt-related derivatives on the “banks too big to fail” (BTBF) balance sheets by purchasing mortgage-backed derivatives. Without QE, interest rates would be much higher, and values on the banks’ balance sheets would be much lower.

Quantitative Easing has been underway since December 2008. During these 54 months, the Federal Reserve has created several trillion new dollars with which the Fed has monetized the same amount of debt.

One result of this policy is that most real US interest rates are negative. Another result is that the supply of dollars has outstripped the world’s demand for dollars.

These two results are the reason that the Federal Reserve’s policy of printing money with which to purchase Treasury bonds and mortgage backed derivatives threatens the dollar’s exchange value and, thus, the dollar’s role as world reserve currency.

To be the world reserve currency means that the dollar can be used to pay any and every country’s oil bills and trade deficit. The dollar is the medium of international payment.

This is very helpful to the US and is the main source of US power. Because the dollar is the reserve currency, the US can cover its import costs and pay for its cost of operation simply by creating its own paper money.

If the dollar were not the reserve currency, Washington would not be able to finance its wars or continue to run large trade and budget deficits. Therefore, protecting the exchange value of the dollar is Washington’s prime concern if it is to remain a superpower.

The threats to the dollar are alternative monies–currencies that are not being created in enormous quantities, gold and silver, and Bitcoins, a digital currency.

The Bitcoin threat was eliminated on May 17 when the Gestapo Department of Homeland Security seized Bitcoin’s accounts. The excuse was that Bitcoin had failed to register in keeping with the US Treasury’s anti-money laundering requirements.

Washington has stifled the threat from other currencies by convincing other large currencies to out-print the dollar. Japan has complied, and the European Central Bank, though somewhat constrained by Germany, has entered the printing mode in order to bail out the private banks endangered by the “sovereign debt crisis.”

That leaves gold and silver. The enormous increase in the prices of gold and silver over the last decade convinced Washington that there are a number of miscreants who do not trust the dollar and whose numbers must not be permitted to increase.

The price of gold rose from $272 an ounce in December 2000 to $1,917.50 on August 23, 2011. The financial gangsters who own and run America panicked. With the price of the dollar collapsing in relation to historical real money, how could the dollar’s exchange rate to other currencies be valid? If the dollar’s exchange value came under attack, the Federal Reserve would have to stop printing and would lose control over interest rates.

The bond and stock market bubbles would pop, and the interest payments on the federal debt would explode, leaving Washington even more indebted and unable to finance its wars, police state, and bankster bailouts.

Something had to be done about the rising price of gold and silver.

There are two bullion markets. One is a paper market in New York, Comex, where paper claims to gold are traded. The other is the physical market where personal possession is taken of the metal–coin shops, bullion dealers, jewelry stores.

The way the banksters have it set up, the price of bullion is not set in the markets in which people actually take possession of the metals. The price is set in the paper market where speculators gamble.

This bifurcated market gave the Federal Reserve the ability to protect the dollar from its printing press.

On Friday, April 12, 2013, short sales of gold hit the New York market in an amount estimated to have been somewhere between 124 and 400 tons of gold. This enormous and unprecedented sale implies an illegal conspiracy of sellers intent on rigging the market or action by the Federal Reserve through its agents, the BTBF that are the bullion banks.

The enormous sales of naked shorts drove down the gold price, triggering stop-loss orders and margin calls. The attack continued on Monday, April 15, and has continued since.

Before going further, note that there are position limits imposed on the number of contracts that traders can sell at one time. The 124 tons figure would have required 14 traders with no open interest on the exchange to sell all together in the same few minutes 40,000 futures contracts. The likelihood of so many traders deciding to short at the same moment at the maximum permitted is not believable. This was an attack ordered by the Federal Reserve, which is why there is no investigation of the illegality.

Note also that no seller that wanted out of a position would give himself a low price by dumping an enormous amount all at once unless the goal was not profit but to smash the bullion price.

Since the April 12-15 attack on the gold price, subsequent attacks have occurred at 2pm Hong Kong time and 2 am New York time. At this time activity is light, waiting on London to begin operating. As William S.Kaye has observed, no entity concerned about profits would choose this time to sell 20,000 to 30,000 futures contracts, but this is what has been happening.

Who can be unconcerned with losing money in this way? Only a central bank that can print it.

Now we come to the physical market where people take possession of bullion instead of betting on paper instruments. Look at this chart from ZeroHedge. http://www.zerohedge.com/news/2013-05-16/gold-demand-one-chart-physical-vs-etf The demand for physical possession is high, despite the assault on gold that began in 2011, but as the price is set in the non-real paper market, orchestrated short sales, as in the current quarter of 2013, can drive down the price regardless of the fact that the actual demand for gold and silver cannot be met.

While the corrupt Western financial press urges people to abandon bullion, everyone is trying to purchase more, and the premiums above the spot price have risen. Around the world there is a shortage of gold and silver in the forms, such as one-ounce coins and ten-ounce bars, that individuals demand.

That the decline in gold and silver prices is an orchestration is apparent from the fact that the demand for bullion in the physical market has increased while naked short sales in the paper market imply a flight from bullion.

What does this illegal manipulation of markets by the Federal Reserve tell us? It tells us that the Federal Reserve sees no way out of printing money in order to support the federal deficit and the insolvent banks. If the dollar came under attack and the Federal Reserve had to stop printing dollars, interest rates would rise. The bond and stock markets would collapse. The dollar would be abandoned as reserve currency. Washington would no longer be able to pay its bills and would lose its hegemony. The world of hubristic Washington would collapse.

It remains to be seen whether Washington can prevail over the world demand for gold and silver. Can the dollar remain supreme when offshoring has deprived the US of the ability to cover its imports with exports? Can the dollar remain supreme when the Federal reserve is creating 1,000 billion new ones each year, while the BRICS, China and Japan, China and Australia, and China and Russia are making deals to settle their trade balances without the use of the dollar?

If the consumption-based US economy deprived of consumer income by jobs offshoring takes a further dip down in the third or fourth quarter–a downturn that cannot be masked by phony statistical releases–the federal deficit will rise. What will be the effect on the dollar if the Federal Reserve has to increase its Quantitative Easing?

A perfect storm has been prepared for America. Real interest rates are negative, but debt and money are being created hand over foot. The dollar’s demise awaits the world’s decision how to get out of it. The Federal Reserve can print dollars with which to keep the bond and stock markets high, but the Federal Reserve cannot print foreign currencies with which to keep the dollar afloat.

When the dollar goes, Washington’s power goes, which is why the bullion market is rigged. Protect the power. That is the agenda. Is it another Washington over-reach?

Bitcoin Note: On May 16, PCWorld reported: “The seizure of funds of the largest bitcoin exchange, Mt. Gox, was triggered by an alleged failure of the company to comply with U.S. financial regulations, according to a federal court document. The U.S. District Court in Maryland on Tuesday ordered the seizure of Mt. Gox’s funds, which were in an account with Dwolla, a payments company that transferred money from U.S. citizens to Mt. Gox for buying and selling the virtual currency bitcoin.”
Reports subsequent to my column suggest that instead of funds being seized, a money transfer mechanism was shut down. Whatever happened, the government has demonstrated that it can disable or destroy Bitcoin at will. Bitcoin might be tolerated unless it becomes widely used. If the government regards Bitcoin as a refuge from the dollar, it can simply have its agents buy up the Bitcoins, driving the price skyhigh, and then dump the purchases all at once, just as tons of gold shorts were dumped on the gold market.
Bitcoin showed its vulnerability in April when, according to news reports, someone gave away $13,627 worth of Bitcoins, and Bitcoin values crashed from $265 to $105. Some people who watch this market concluded that the exercise was a covert central bank stress test.
The fact that I reported on Bitcoin does not mean that I oppose Bitcoin. The point of my article is to demonstrate that the government will take all steps to protect the dollar from Quantitative Easing.

The post Washington Signals Dollar Deep Concerns — Paul Craig Roberts appeared first on PaulCraigRoberts.org.

My explanation that the sudden appearance of an unprecedented 400 ton short sale of gold on the COMEX in April was a manipulation designed to protect the dollar from the Federal Reserve’s quantitative easing policy has found acceptance among gold investors and hedge fund managers.

The sale was a naked short. The seller had no gold to sell. COMEX reported having gold only equal to about half of the short sale in its vaults, and not all of that was available for delivery. No one but the Federal Reserve could have placed such an order, and the order came from one of the Fed’s bullion banks, one of the entities “too big to fail.”

Bill Kaye of the Greater Asian Hedge Fund in Hong Kong and Dave Kranzler of Golden Returns Capital have filled in the details of how the manipulation worked. Being sophisticated investors of many years of experience, both Kaye and Kranzler understand that the financial press runs with the authorized story planted to serve the agenda that has been put into play.

Institutional investors who have bullion in their portfolio do not want the expense associated with storing it securely. Instead, they buy into Exchange Traded Funds (ETF) and hold their bullion in the form of a paper claim. The largest, the SPDR Gold Trust or GLD, trades on the New York Stock Exchange. The trustee and custodian is a bankster, and only other banksters are able to turn investments into delivery of physical bullion. Only shares in the amount of 100,000 can be redeemed in gold.

The price of bullion is not set in the physical market where individuals take delivery of bullion purchases. It is set in the paper futures market where short selling can drive down the price even if the demand for physical possession is rising. The paper gold market is also the market in which people speculate and leverage their positions, place stop-loss orders, and are subject to margin calls.

When the enormous naked shorts hit the COMEX, stop-loss orders were triggered adding to the sales, and margin calls forced more sales. Investors who were not in on the manipulation lost a lot of money.

The sales of GLD shares are accumulated by the banksters in 100,000 lots and presented to GLD for redemption in gold acquired at the driven down price.

The short sale is leveraged by the stop-loss triggers and margin calls, and results in a profit for the banksters who placed the short sell order. The banksters then profit again as they sell the released gold into the physical market, especially in Asia, where demand has been stimulated by the sharp drop in bullion price and by the loss of confidence in fiat currency. Asian prices are usually at a higher premium above the spot prices in New York-London.

Some readers have said “don’t bet against the Federal Reserve; the manipulation can go on forever.” But can it? As the ETFs such as GLD are drained of gold, their ability to cover any of their obligations to investors diminishes. In my opinion, these ETFs are like a fractional reserve banking system. The claims on gold exceed the amount of gold in the trusts. When the ETFs are looted of their gold by the banksters, the gold price will explode, as the claims on gold will greatly exceed the supply.

Kranzler reports that the current June futures contracts are 12.5 times the amount of deliverable gold. If more than 8 percent of these trades were to demand delivery, COMEX would default. That such a situation is possible indicates the total failure of federal financial regulation.

What the Federal Reserve has done in order to maintain its short-run policy of protecting the “banks too big too fail” is to make the inevitable reckoning more costly for the US economy.

Another irony is the benefactors of the banksters sale of the gold leeched from the gold ETFs. Asia is the beneficiary, especially India and China. The “get out of gold line” of the US financial press enables China to unload its excess supply of dollars, accumulated from the offshored US economy, into the gold market at a suppressed price of gold.

Kranzler points out that not only does the Fed’s manipulation permit Asia to offload US dollars for gold at low prices, but the obvious lack of confidence in the dollar that the manipulation demonstrates has caused wealthy European families to demand delivery of their gold holdings at bullion banks (the bullion banks are essentially the “banks too big to fail”). Kranzler notes that since January 1, more than 400 tons of gold have been drained from COMEX and gold ETF holdings in order to satisfy world demand for physical possession of bullion.

Again we see that institutions of the US government are acting 100% against the interests of US citizens. Just who does the US government represent?

The post Gangster State America — Paul Craig Roberts appeared first on PaulCraigRoberts.org.

One of his early achievements was to dispose of the myth of immigrant crime by demonstrating that “Hispanics have approximately the same crime rates as whites of the same age and gender.” You can imagine the uproar, but Unz won the debate.

Unz provoked and prevailed in another controversy when he concluded that Mexican-Americans have approximately the same innate intelligence as whites, with their lower IQs being due to transitory socio-economic deprivation.

He next surprised by showing the connection between the declining real value of the minimum wage (about one-third less than in the 1960s) and immigration. Americans cannot survive on one-third less minimum income than four decades ago, and the unfilled jobs are taken by Hispanics who live many to the room. A higher minimum wage, Unz pointed out, would cure the illegal immigration problem as American citizens would fill the jobs.

I wrote about some of Unz’s remarkable findings. One of my favorites is his comparison of the responsiveness of the Chinese and US governments to their publics. I found his conclusion convincing that the authoritarian one-party Chinese government was more responsive to the Chinese people than democratic two-party Washington is to the American people.

The person is rare who can take on such controversial issues in such a professional way that he wins the admiration even of his critics. In my opinion, Ron Unz is a national resource. He has established online libraries of important periodicals and magazines from the pre-Internet era, information that otherwise essentially would be lost. I have not met him, but he donates to this site and is an independent thinker free of The Matrix.

Unz’s latest article, “Our American Pravda,” http://www.theamericanconservative.com/articles/our-american-pravda/ is a striking account of the failure of media, regulatory, and national security organizations and subsequent coverups that leave the public deceived. Unz uses the Iraq war as one example:

“The circumstances surrounding our Iraq War demonstrate this, certainly ranking it among the strangest military conflicts of modern times. The 2001 attacks in America were quickly ascribed to the radical Islamists of al-Qaeda, whose bitterest enemy in the Middle East had always been Saddam Hussein’s secular Baathist regime in Iraq. Yet through misleading public statements, false press leaks, and even forged evidence such as the “yellowcake” documents, the Bush administration and its neoconservative allies utilized the compliant American media to persuade our citizens that Iraq’s nonexistent WMDs posed a deadly national threat and required elimination by war and invasion. Indeed, for several years national polls showed that a large majority of conservatives and Republicans actually believed that Saddam was the mastermind behind 9/11 and the Iraq War was being fought as retribution. Consider how bizarre the history of the 1940s would seem if America had attacked China in retaliation for Pearl Harbor.

“True facts were easily available to anyone paying attention in the years after 2001, but most Americans do not bother and simply draw their understanding of the world from what they are told by the major media, which overwhelmingly—almost uniformly—backed the case for war with Iraq; the talking heads on TV created our reality. Prominent journalists across the liberal and conservative spectrum eagerly published the most ridiculous lies and distortions passed on to them by anonymous sources, and stampeded Congress down the path to war.

“The result was what my late friend Lt. Gen. Bill Odom rightly called the “greatest strategic disaster in United States history.” American forces suffered tens of thousands of needless deaths and injuries, while our country took a huge step toward national bankruptcy [and a police state]. Economics Nobel Laureate Joseph Stiglitz and others have estimated that with interest the total long-term cost of our two recent wars may reach as high as $5 or $6 trillion, or as much as $50,000 per American household, mostly still unpaid. Meanwhile, economist Edward Wolff has calculated that the Great Recession and its aftermath cut the personal net worth of the median American household to $57,000 in 2010 from a figure nearly twice as high three years earlier. Comparing these assets and liabilities, we see that the American middle class now hovers on the brink of insolvency, with the cost of our foreign wars being a leading cause.

“But no one involved in the debacle ultimately suffered any serious consequences, and most of the same prominent politicians and highly paid media figures who were responsible remain just as prominent and highly paid today. For most Americans, reality is whatever our media organs tell us, and since these have largely ignored the facts and adverse consequences of our wars in recent years, the American people have similarly forgotten. Recent polls show that only half the public today believes that the Iraq War was a mistake.”

Unz covers a number of cases of criminality, treason, and coverups at high levels of government and points out that “these dramatic, well-documented accounts have been ignored by our national media.” One reason for “this wall of uninterest” is that both parties are complicit and thus equally eager to bury the facts.

Unz is raising the question of the efficacy of democracy. Does the way democracy works in America provide any more self-rule than in undemocratic regimes? He offers this example:

“Most of the Americans who elected Barack Obama in 2008 intended their vote as a total repudiation of the policies and personnel of the preceding George W. Bush administration. Yet once in office, Obama’s crucial selections—Robert Gates at Defense, Timothy Geither at Treasury, and Ben Bernake at the Federal Reserve—were all top Bush officials, and they seamlessly continued the unpopular financial bailouts and foreign wars begun by his predecessor, producing what amounted to a third Bush term.”

In an article not long ago, I raised the issue whether Americans live in The Matrix with their perceptions and thoughts controlled by disinformation as in George Orwell’s 1984.

Unz adds to this perspective. He tells the story of Russian oligarch Boris Berezovsky’s plan to transform Russia into a make-believe two-party state complete with heated battles fought on divisive and symbolic issues. Behind the scenes the political elites would orchestrate the political battles between the parties with the purpose of keeping the population divided and funneling popular dissatisfaction into meaningless dead-end issues. In such a system, self-serving power prevails. After describing Berezovsky’s plot, Unz asks if Berezovsky got his idea from observing the American political scene.

Thinking further about the propagandistic nature of the US media, Unz writes:

“Individuals from less trusting societies are often surprised at the extent to which so many educated Americans tend to believe whatever the media tells them and ignore whatever it does not, placing few constraints on even the most ridiculous propaganda. For example, a commentator on my article described the East German media propaganda he had experienced prior to Reunification as being in many respects more factual and less totally ridiculous than what he now saw on American cable news shows. One obvious difference was that Western media was so globally dominant during that era that the inhabitants of the German Democratic Republic inevitably had reasonable access to a contrasting second source of information, forcing their media to be much more cautious in its dishonesty, while today almost any nonsense uniformly supported by the MSNBC-to-FoxNews spectrum of acceptable opinion remains almost totally unquestioned by most Americans.” http://www.theamericanconservative.com/american-pravda-reality-television/

Unz’s view of the US media as propagandists for power is consistent with that of John Pilger, one of the last remaining real journalists who refuses to serve power, and with Gerald Celente, who sums up the sordid American media in one word–”presstitutes.” I know from my own media experience that an independent print and TV media no longer exists in the West. The American media is a tightly controlled disinformation ministry.

Those few Americans who are free of the constraints imposed by dogmas on their ability to think and to process information have a huge responsibility for their small number. The assault on the rule of law began in the last years of the Clinton regime, but the real destruction of the US Constitution, the basis for the United States, was achieved by the neoconservative George W. Bush and Obama regimes. Wars without declarations by Congress, torture in violation of both US and international law, war crimes in violation of the Nuremberg standard, indefinite detention and assassination of US citizens without due process of law, universal spying on US citizens without warrants, federalization of state and local police now armed with military weapons and uniforms, detention centers, “your papers, please” (without the Gestapo “please”) not only at airports but also on highways, streets, bus terminals, train stations, and at sporting events.

On May 5 Obama gave the commencement address at Ohio State University. No doubt that the graduates thought that they were being honored by being addressed by the world’s greatest tyrant.

Obama told the graduating class, to applause, that their obligation as citizens is to trust the government. Outdoing George Orwell’s Big Brother, Obama said in public to a graduating class of a great university without shame: “You have grown up hearing voices that incessantly warn of government as . . . some sinister entity that’s at the root of all our problems; some of these same voices also doing their best to gum up the works. They’ll warn that tyranny is always lurking just around the corner. You should reject these voices.”

Listen to my propaganda, not to those constitutional experts, legal authorities, and critics of me, the First Black President, who tell you to beware of unaccountable government. Due process is decided by the demands of the war on terror. If there is a war on terror, do you want a fair trial or do you want to be safe? I am going to make you safe by not giving defendants accused of terrorism, who some liberal-pinko-commie judge would set free, a fair trial.

Making you safe by enveloping you in a police state is a nonpartisan undertaking. Just listen to Lindsay Graham and Peter King and John McCain. These Republican leaders are demanding the police state that I am providing.

As my own legal department, The US Department Of Justice, decided, the Dictator, I mean, elected president, has the power to save the country from domestic and foreign terrorists by abrogating the US Constitution, an out-of-date document that binds our hands and prevents us from keeping you, our serfs and minions, I mean our cherished citizens, safe.

Trust me. That is your obligation as a US citizen. Trust me and I will make you free, happy, employed sometime later in this century when the Amerikan Empire controls the world.

The US Constitution was written by people who opposed Empire. These people were misguided, just like the Roman Republicans who did not understand the need for a Caesar. The American Empire, as the neoconservatives have made clear, is what keeps you free from terrorism. We have to kill them over there before they come over here. And those who are over here will be killed too. We tolerate no dissent. That part of the Constitution is gone, along with the rest of it.

Now give me my honorary doctorate, another sign of approval of my usurpation.

The post How Elites and Media Minimize Dissent and Bury Truth — Paul Craig Roberts appeared first on PaulCraigRoberts.org.

Obama, who has betrayed democracy in America, unleashing execution on American citizens without due process of law and war without the consent of Congress, provoked Maduro’s response by suggesting that Maduro’s newly elected government might be fraudulent. Obviously, Obama is piqued that the millions of dollars his administration spent trying to elect an American puppet instead of Maduro failed to do the job.

If anyone has accurately summed up Washington, it is the Venezuelans.

Who can forget Chevez standing at the podium of the UN General Assembly in New York City speaking of George W. Bush? Quoting from memory: “Right here, yesterday, at this very podium stood Satan himself, speaking as if he owned the world. You can still smell the sulphur.”

Hegemonic Washington threw countless amounts of money into the last Venezuelan election, doing its best to deliver the governance of that country to a Washington puppet called Henrique Capriles, in my opinion a traitor to Venezuela. Why isn’t this American puppet arrested for treason? Why are not the Washington operatives against an independent country–the US ambassador, the counsels, the USAID/CIA personnel, the Washington funded NGOs–ordered to leave Venezuela immediately or arrested and tried for spying and high treason? Why allow any presence of Washington in Venezuela when it is clear that Washington’s intention is to make Venezuela a puppet state like the UK, Germany, Canada, Australia, Turkey, Japan, and on and on.

There was a time, such as in the Allende-Pinochet era, when the American left-wing and a no longer extant liberal media would have been all over Washington for its illegal interference in the internal affairs of an independent country. But no more. As CounterPunch’s Jeffrey St. Clair has recently made clear, the American left-wing remains “insensate to the moral and constitutional transgressions being committed by their champion”–the first black, or half-black, US president–leaving “Rand Paul to offer official denunciations against [Washington’s] malignant operations” against independent countries.

Against the Obama regime’s acts of international and domestic violence, “the professional Left, from the progressive caucus to the robotic minions of Moveon.org, lodge no objections and launch no protests.” St. Clair has written a powerful article. Read it for yourself: http://www.counterpunch.org/2013/05/03/the-game-of-drones/print

I think the American left-wing lost its confidence when the Soviet Union collapsed and the Chinese communists and Indian socialists turned capitalist. Everyone misread the situation, especially the “end of history” idiots. The consequence is a world without strong protests of Washington’s and its puppet states’ war criminal military aggressions, murder, destruction of civil liberty and human rights, and transparent propaganda: “Last night Polish forces crossed the frontier and attacked Germany,” or so declared Adolf Hitler. Washington’s charges of “weapons of mass destruction” are even more transparent lies.

But hardly any care. The Western governments and Japan are all paid off and bought, and those that are not bought are begging to be bought because they want the money too. Truth, integrity, these are all dead-letter words. No one any longer knows what they mean.

The moronic George W. Bush said, in Orwellian double-speak, they hate us for our freedom and democracy. They don’t hate us because we bomb them, invade them, kill them, destroy their way of life, culture, and infrastructure. They hate us because we are so good. How stupid does a person have to be to believe this BS?

Washington and Israel present the world with unmistakable evil. I don’t need to stand at the UN podium after Bush or Obama. I can smell Washington’s evil as far away as Florida. Jeffrey St. Clair can smell it in Oregon. Nicolas Maduro can smell it in Venezuela. Evo Morales can smell it in Bolivia from where he cast out CIA-infiltrated USAID. Putin can smell it in Russia, although he still permits the treasonous “Russian opposition” funded by US money to operate against Russia’s government. The Iranians can smell it in the Persian Gulf. The Chinese can smell it as far away as Beijing.

Homeland Security, a gestapo institution, has “crisis actors” to help it deceive the public in its false flag operations. http://www.governamerica.com/black-ops/boston-bombings/110-fema-hiring-actors-to-run-live-terror-drills

The Obama regime has drones with which to silence American citizens without due process of law.
http://www.salem-news.com/articles/may042013/drones-boston-wh.php

Homeland Security has more than a billion rounds of ammunition, tanks, a para-military force. Detention camps have been built.

Are Americans so completely stupid that they believe this is all for “terrorists” whose sparse numbers require the FBI to manufacture “terrorists” in so-called “sting operations” in order to justify the FBI’s $3 billion special fund from Congress to combat domestic terrorism?

Congress has taxpayers paying the FBI to frame up innocents and send them to prison.

This is the kind of country American has become. This is the kind of “security” agencies it has, filling their pockets by destroying the lives of the innocent and downtrodden.

“In God we trust,” reads the coinage. It should read: “In Satan we follow.”

The post Washington’s Presumption — Paul Craig Roberts appeared first on PaulCraigRoberts.org.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/4_Former_US_Treasury_Official_-_Gold,_Silver,_The_Fed_%26_Bank_Runs.html

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/3_Former_US_Treasury_Official_-_Todays_Jobs_Report_A_Total_Farce.html

The post May, 2013, King World News Interviews with PCR appeared first on PaulCraigRoberts.org.

The Financial Press: A Disinformation Machine

Paul Craig Roberts

Dave Kranzler of Golden Returns Capital declares the April payroll jobs report that was released on May 3 by the Bureau of Labor Statistics to be “fictitious.” http://truthingold.blogspot.com/2013/05/the-governments-non-farm-payroll-report.html

Statistician John Williams (shadowstats.com) says both the jobs report and unemployment rate are “nonsense.”

I agree with both. But don’t expect the financial press to report the facts.

Let’s take a walk through the BLS report and you can arrive at your own conclusion. http://www.bls.gov/news.release/empsit.t17.htm

The BLS report says that the private sector created 185,000 service jobs in April. Even if this report were true, it would have negligible effect on the unemployment rate as about 127,000 new jobs are needed each month just to stay even with population growth and current unemployment rate. http://www.economicpopulist.org/content/how-many-jobs-are-needed-keep-population-growth

But is the BLS report true?

We can answer that question by examining the areas where the jobs reportedly materialized: 29,300 in retail trade with general merchandise stores accounting for about half of that number, 73,000 in professional and business services with temporary help services accounting for 42 percent of that number, 26,100 in health care and social assistance with ambulatory health care services accounting for 52 percent of that number, 45,100 in accommodation and food services with waitresses and bartenders accounting for 84 percent of the jobs, and 8,600 jobs created for bill collectors.

That’s it. The federal government lost 8,000 jobs, the postal service lost 4,900 jobs, state government lost 1,000 jobs and local government lost 2,000 jobs.

There were zero jobs created in manufacturing.

Considering the credit-restrained and hard pressed consumer, the jobs figure for bill collectors is likely correct. But why would there be 29,000 new jobs in retail trade when real retail sales are falling? Why would there be new professional service jobs when large consulting companies such as IBM are reducing the hours of their contract employees? How can 38,000 waitress and bartenders be hired in one month when consumers have so little discretionary income?

Notice, too, that the BLS reports that 6,000 construction jobs were lost in April. Yet, the financial press is full of reports of “housing recovery.”

You know those thousands and thousands of fracking jobs that the fracking industry has been hyping so that communities, desperate for jobs, ignore the destruction of their surface and ground waters? Well the BLS report shows that oil and gas extraction jobs, which includes normal oil and gas recovery, peaked in February. Only 900 jobs were created in April, a small reward for destroyed aquifers and surface streams. People who live in fracking areas have been warned to open their windows when showering to avoid being asphyxiated because of the methane in the water and to not be surprised if their water actually burns. There is no doubt that fracking because of its enormous external costs produces a net economic loss.

In America everything is hype for a buck. They will sell you any lie. And the bulk of the population, of course, can be counted on for falling for every lie.

In my opinion, the March BLS jobs report of only 88,000 new jobs, only 69 percent of those needed to stay even with population growth, undermined the Obama regime’s recovery hype and the stock market’s confidence in “recovery.” Even brainwashed Americans have learned that “jobless recovery” is an oxymoron. So the word was passed to the political appointee overseeing the BLS to avoid further embarrassments. However, like the old Soviet press, the professional staff delivered the required report in a way that undermined it. Goods-producing jobs are reported to have dropped by 9,000 and retail stores are being closed, so why are 100,000 new jobs needed in retail trade and professional and business services?

John Williams explains the deception in the unemployment rate reporting. The 7.5 percent reported rate is not the product of new jobs generated by a recovering economy. It is the result of discouraged workers who, unable to find jobs, give up looking and, thus, cease being counted in the work force. The real rate of unemployment when discouraged workers are counted as unemployed is 23 percent. You can see the truth of this in the collapsing labor force participation rate. The collapse in the participation rate is not the result of a return to the prosperity of my youth when one-earner families were the norm. It is the result of millions of Americans unable to find employment and no longer being counted in the labor force.

Just as the government lied about weapons of mass destruction in Iraq and is now repeating the lie about weapons of mass destruction in Syria, the government lies about jobs and the unemployment rate. What doesn’t the government lie about?

Anyone who thinks an economic recovery has been ongoing since June 2009 can cure themselves of the delusion by looking at this chart:

http://www.shadowstats.com/imgs/2013/839/image008.gif?vcode=a30565410417421b

NOTE: The cut in hours worked translates into a 500,000 job loss in April. See: http://www.marketwatch.com/story/dark-side-to-jobs-report-big-drop-in-hours-worked-2013-05-03

The post The Financial Press–A Disinformation Machine — Paul Craig Roberts appeared first on PaulCraigRoberts.org.

If there is hope, you are it. You are motivated to find truth. You can think outside the box. You can see through propaganda. You are the remnant with the common sense that once was a common American virtue. You come to this site, because you get explanations that are not agenda-driven, that are not BS, that are not right-wing or left-wing, conservative or liberal, Republican or Democrat. You get explanations based on my lifetime of unique education and experience. Some of you are young enough to be equipped with the energy and courage to organize whatever resistance there may be to the Gestapo State that is descending on the United States of America. This is your site. Support it.

Until the George W. Bush Regime, I never thought that it could happen here. I could not imagine law professors and Department of Justice (sic) officials writing legal memos justifying, in the name of a hyped “war on terror,” the termination of civil rights for United States Citizens. We were the land of the free. The Constitution was our bedrock. Yet, the Constitution and Bill of Rights were easily taken away from the inattentive American people.

The Constitution did not protect native inhabitants and slaves who were not considered part of the American population, but the universal suppression in the US of non-whites’ rights produced in the end the civil rights movement that brought moral awareness of the wrongs and successfully hitched its cause to the founding documents of the country.

Where today is moral awareness as Washington bombs civilian populations around the globe? Where is the moral conscience of the the civil rights movement as the First Black President, the first member of the oppressed class to sit in the Oval Office, validates the Bush Regime’s assertion of the right of the unaccountable executive to ignore habeas corpus and due process? Not satisfied with this crime, Obama asserted the right of the executive branch to murder any citizen suspected, without proof being offered to a court, of undefined “support of terrorism.” Today all Americans have fewer rights than blacks had prior to the Civil Rights Act.

Anything, including a column critical of war and the police state, can be declared to be “in support of terrorism.” As the tyrant Bush put it: “You are with us, or you are against us.”

The print and TV media and many Internet sites got the message: Serve Washington’s agenda, and will you will prosper. Advertisers and the CIA will pump money into your coffers. Challenge us and you will be demonized and could face a military tribunal, indefinite detention, or assassination. Bradley Manning and Julian Assange are being persecuted for telling the truth.

So far, Washington has convinced the public that Washington’s terror is mainly limited to Muslims, who are obligingly demonized by print, TV, and much of the Internet media. However, if Muslim American citizens lack civil liberty, so do all other American citizens. Those who are safe are those who ally with the tyrant and remain subservient.

To ally with the tyrant, a United States citizen must have no moral conscience, no sense of justice, no compassion for the innocent and dispossessed. These are the worst kind of Americans; yet, they are the only ones who can succeed in the present environment.

Every time I write a column that is the truth or the truth as I am able to discover it, instead of hawking the propaganda line, I move up on the list of those who are persona non grata in the Empire.

A writer can find himself demonized and declared a kook simply by reporting findings from distinguished scientists, high-rise architects, structural engineers, first responders, and an international collection of high government officials. Not too long ago a writer or reporter for the Huffington Post discovered to his surprise that Pat Buchanan and I disagreed with all the wars that had been launched to protect us from terrorism. He asked me for an interview, and I agreed.

An hour or so after the interview was posted on the Huffington Post, I received an emergency call or email. He had been criticized for interviewing me, “for giving you a forum when you are a 9/11 sceptic.” He was unsure that it was possible for a Reagan presidential appointee to be a 9/11 sceptic and asked if I was.

I replied that I had reported the findings of scientists, architects, engineers, and the public testimony of first responders, because I thought these were qualified people whose opinions at least ranked equally with the politicians on the 9/11 Commission and the talking heads on Fox “News” and CNN, none of whom could pass a high school test in the laws of physics, much less high-rise architecture and structural engineering.

The Huffington Post writer panicked. Instead of taking down the interview, he felt impelled to assure readers and his boss that he had been deceived. He wrote at the beginning and ending of the interview that he did not know he was interviewing someone about the Iraq War who had given ink to those conspiracy theorists who raised questions about the truthfulness of the US government. He wrote that my views on the wars should be disregarded, because I wrote that scientists, architects, engineers, and first responders provided evidence contrary to the government’s claims.

And there you have it.

The Huffington Post has far more readers than I do, and far more money. There is no limit on the ability of the Huffington Post to tell and sell the lies of the Agenda.

I can remember when I was a Wall Street Journal editor and columnist, a Business Week columnist, a Scripps Howard News Service columnist and appeared regularly in the major mainstream print media and even from time to time on TV talking head programs. Today, the editor or producer who gave me a forum would be fired instantly, and they all know it.

It is discouraging that after so many transparent lies and orchestrations–weapons of mass destruction, al-Qaeda connections, Iranian nukes–the majority of Americans still believe the government. Americans are even buying into the line that Syria is ruled by a brutal dictator whose overthrow justifies Washington’s alliance with its 9/11 enemy, al-Qaeda, in order to overthrow a secular ruler who constrains al-Qaeda.

Washington has come full circle. Its enemy is now its ally. Washington wasted trillions of dollars and countless lives in eleven years of war and constructed a domestic police state all in order to combat al Qaeda with whom Washington is now allied against the Syrian government.

The public’s response to the Boston Marathon Bombing is even more discouraging. Not even King George and his Redcoats could achieve what Homeland Security just pulled off–locking down 100 square miles of Boston and its suburbs with heavily armed troops tramping through citizens’ homes barking harsh orders, all justified by a hunt for one 19-year old suspect. It was the Third Reich’s Gestapo in operation right here in “freedom and democracy” America. Ron Paul is correct that the suspension of civil liberty is a greater threat than the bombing. Note the government’s euphemism for martial law–”shelter-in-place.”

Two brothers have been convicted in the media and by the Obama Regime, including the president’s own words, of a bombing without the public ever being presented with any evidence except anonymous unattributed reports and a film of the alleged brothers walking with backpacks, which were ubiquitous.

I am old enough to remember when it was impermissible for government and media to convict a person prior to the jury’s verdict. Americans once lived in a free country governed by the rule of law in which a person was innocent until proven guilty.

What was the reason or evidence for naming the brothers suspects? Was any reason given, or was the film of the two walking with backpacks simply shown over and over, hour after hour, day after day, with the media reporting that these are the suspects. In other words, was it beat into your brain that they were suspects because there they are in the film? If not, why was the same film shown repeatedly? Fox “News” was still showing the film on April 26, eleven days after the bombing and might still be showing it. Did you experience: “Here are the suspects. See them. They have backpacks. See. We know that they are suspects, because, see, there they are.”

When is the last time the media investigated anything? A good candidate for investigation is the post-bombing rampage the brothers allegedly went on, robbing a 7/11 store (later contradicted by local police), killing a campus policeman, shooting a transit cop, high-jacking a SUV and releasing the owner.

Why would terrorists seeking to escape in order to strike again call attention to themselves in such outlandish ways and release a car-jacked owner to alert the police of the tag number? If the brothers were willing to kill police with gunfire and innocents with bombs, why release the guy whose vehicle they stole so he could inform the police of the license plate and make the brothers’ capture easier? What is the evidence, other than “reports from authorities,” that these events occurred or had any more connection to the brothers than the falsely reported 7/11 robbery that local police disavowed? Why does the US media simply accept whatever government authorities say?

Where is the evidence of a first shoot-out and a second shoot-out? The second shoot- out consisted of the authorities bombarding a motionless youth bleeding from wounds in a boat with multiple volleys of stun grenades and then multiple gunshots. The unconscious 19 year old was unarmed and unable to respond to the boat owner who discovered him. As he lies there, he is shot many times, including through the throat, and is on life support. But the very next day, according to the presstitute media, he is providing hand-written confessions.

Was the purpose of the reports of a murderous rampage to create fear among the population so that they would accept martial law and home invasions by armed troops ordering American citizens out of their homes with hands over their heads on the pretext that they might be harboring the Boston Marathon Bomber?

The videos of the street celebration in which Bostonians thank the police and of the two Boston families, if not scripted by actors, shows Americans who far from opposing the police state welcome it. A father says that he with his daughter in his arms was forced out of his home by troops pointing automatic rifles at their heads, but that he was thankful for the safety the police provided him by violating every civil right that the Constitution gave him. A woman says it was scary but that “the police are just doing their jobs.” Are Americans now so brainwashed that they attribute their safety to the presence of a Gestapo Police State?

Why have detention facilities been built? Why did Homeland Security purchase a billion or more rounds of ammunition? Why does Homeland Security have 2,700 tanks and a para-military force? Why aren’t these questions being investigated?

The US Constitution is the product of 900 years of human efforts to restrain brutal government and to make government subject to law. It only took Bush and Obama eleven years to get rid of it.

This is my quarterly appeal for your support. If you want this site to continue, donate. Unless it brings you more enlightenment than it brings grief to me, there is no reason for it to exist.

The post You Are The Hope — Paul Craig Roberts appeared first on PaulCraigRoberts.org.

Since the recession was officially declared to be over in June 2009, I have assured readers that there has been no recovery. Gerald Celente, John Williams (shadowstats.com), and no doubt others have also made it clear that the alleged recovery is an artifact of an understated inflation rate that produces an image of real economic growth.

Now comes the Pew Research Center with its conclusion that the recession ended only for the top 7 percent of households that have substantial holdings of stocks and bonds. The other 93% of the American population is still in recession. http://www.pewsocialtrends.org/2013/04/23/a-rise-in-wealth-for-the-wealthydeclines-for-the-lower-93/

The Pew report attributes the recovery for the affluent to the rise in the stock and bond markets, but does not say what caused these markets to rise.

The stock market’s recovery does not reflect rising consumer purchasing power and retail sales. The labor force is shrinking, not growing. Job growth lags population growth, and the few jobs that are created are primarily dead-end jobs in lowly paid domestic services. Retail sales adjusted for inflation and real median household income have been bottom bouncing since 2009.

To the extent that there is profit growth in US corporations, it comes from labor cost savings from offshoring US jobs and from bringing in foreign workers on work visas. By lowering labor costs, corporations boost profits and thereby capital gains for those 7 percent who have large holdings of financial assets. Those in the 93 percent who are displaced by foreign workers experience income reductions. This transfer of the incomes of the 93 percent to the 7 percent via jobs offshoring and work visas is the reason for the stark rise in US income inequality.

Another source of the stock market’s rise is the Federal Reserve’s policy of quantitative easing, that is, the printing of $1,000 billion dollars annually with which to support the too-big-to-fail banks’ balance sheets and to finance the federal budget deficit. The cash that the Fed is pouring into the banks is not finding its way into business and consumer loans, but the money is available for the banks to speculate in derivatives and stock market futures. Thus, the Fed’s policy, which is directed at keeping afloat a few oversized banks, also benefits the 7 percent by driving up the value of their stock portfolios.

The reason bond prices are so high that real interest rates are negative is that the Fed is purchasing $1,000 billion of mortgage-backed “securities” and US Treasury debt annually. The lower the Fed forces interest rates, the higher go bond prices. If you are among the 7 percent, the Fed has produced capital gains for your bond portfolio. But if you are a saver among the 93 percent, you are losing purchasing power because the interest you receive is less than the rate of inflation.

The Pew report puts it this way: Since the “recovery” that began in June 2009, wealthy households experienced a 28 percent rise in their net worth, while everyone else lost 4 percent of their assets.

Is this the profile of a democracy in which government serves the public interest, or is it the profile of a financial aristocracy that uses government to grind the population under foot?

The post Recovery for the 7 Percent — Paul Craig Roberts appeared first on PaulCraigRoberts.org.

In Afghanistan eleven years of US attempted occupation has had no more success than a decade of Soviet occupation. The Afghans are still not worn down despite more than two decades of war with the two superpowers. Like the Soviets, the Americans have managed to kill many women, children, and village elders, but precious few warriors. In place of the Soviet puppet government there is Washington’s puppet government. That is the only change, and Washington’s puppet is no more secure than the Soviet one was.

In Libya, Washington used its corrupt NATO puppets and CIA-recruited bandits to overthrow another stable government, that of Muammar Gaddafi, leaving Libya mired in sectarian violence. A stable prosperous country has simply been destroyed by western governments that profess human rights values and condemn China and Russia for not having any.

Washington has also been killing civilians with drones and air strikes in Pakistan and Yemen, two countries with which Washington is not at war but has purchased the governments, paying the Pakistani and Yemeni governments for the right to murder their citizens and destabilizing both countries in the process.

And now in Syria Washington is at work destroying another stable secular government headed by a British trained eye doctor.

Washington’s eleven years of illegal aggression against Muslim countries–war crimes according to the Nuremberg trials of Nazis–have resulted in civilian deaths far in excess of military casualties and in a domestic American police state that has destroyed the rule of law and the constitutional protections of US citizens. Washington and its presstitutes have emphasized that these costs are necessary to save Americans from al-Qaeda terrorists, none of whom have ever been apprehended in the United States.

Having listened to the propaganda line pumped out by Washington and its Ministry of Propaganda for eleven years, imagine my astonishment when I saw two juxtaposed headlines: “Al-Nusra pledges allegiance to al-Qaeda” (BBC) and “Move to Widen Help for Syrian Rebels Gains Speed in West” (NY Times). Al-Nusra is the main military component of the “Syrian rebels,” and it has allied itself with our mortal enemy–Osama bin Laden’s al-Qaeda.

Wait a minute! Our government told us for eleven years that we blew trillions of dollars on wars to protect Americans from al-Qaeda, endangering Social Security, Medicare, the social safety net, the dollar’s exchange value, the credit rating of the US Treasury, and our civil liberties in order to save America from al-Qaeda terrorists. So why is Washington now supporting al-Qaeda’s overthrow of the secular, non-Islamist government in Syria which has never ever done anything whatsoever to Americans!?

The New York Times presstitutes, Michael R. Gordon and Mark Landler, elevated the terrorist al-Qaeda organization to the status of “the Syrian opposition.” At a lunch meeting hosted by Washington’s puppet, British Foreign Secretary William Hague, and US Secretary of State John Kerry, “the Syrian opposition,” aka al-Qaeda, requested antiaircraft and antitank weapons. A senior Washington official said: “Our assistance has been on an upward trajectory, and the president (Obama) has directed his national security team to identify additional measures so that we can increase assistance.”

US Secretary of State John Kerry announced a $123 million “defense aid package” to “the Syrian opposition” that now includes al-Qaeda. Washington had already sent $117 million in “food and medical supplies” to “the Syrian opposition,” and ordered its Middle Eastern puppets to send arms. Note the Orwellian language: support for an outside terrorist force seeking to destroy a government and a people is called a “defense aid package.”

On April 11 the establishment French newspaper, Le Monde, reported that the al-Nosra organization affiliated with al-Qaeda is the dominant force in “the Syrian opposition,” not democratic revolutionaries. Despite this fact, Washington’s puppets, France and Britain, are pushing the European Union to send arms to the al-Qaeda affiliated “Syrian opposition.” And Senator John McCain wants US airstrikes on Syrian government forces with whom the US is not at war, in order to provide air cover for al-Qaeda’s takeover of Syria.

Meanwhile, the Islamist Shiites, whom the Americans left in control of Iraq, have announced that they have joined the battle against the American-supported al-Qaeda forces seeking to radicalize Syria.

So far at last count, the UN reports that the military attack on Syria organized by Washington’s proxies has killed 70,000 people. But americans are preoccupied with the Boson Marathon bombing, which killed 3.

Once again “the indispensable people” are bringing death and destruction to an entire country in order to bring to the dead “freedom and democracy.” No Syrian asked for this “liberation” from his life.

Be a Proud American. We are doing our duty to our rightful hegemony over the world and to Israel, which has purchased our government. It is our right to be the hegemonic power on the planet earth, and that includes the Mediterranean Sea. Therefore it is Washington’s right to overthrow Syria in order to get rid of the Russian naval base there. The Romans would never have put up with a foreign power having a naval base in the Mediterranean, and we can do no less, unless we are some kind of pansy state afraid of our own shadow. The Mediterranean was mare nostrum–our sea–for the Romans. Now it is our sea, and by god we are going to claim it by overthrowing Syria.

Israel, of course, was given the rights to “Greater Israel” by God himself–who am I to question the Christian Zionist preachers who are growing fat on Israeli money–and part of “Greater Israel” is the river in southern Lebanon that supplies precious water.

Hizbollah, provisioned by Syria and Iran has prevented Israel from confiscating southern Lebanon in order to acquire the water rights that God gave them. Therefore, to fulfill our obligations as Israel’s puppet, we are required to destroy both Syria and Iran so that Hizbollah is isolated and out of the way and “Greater Israel” can be created.

The Christian Zionist churches in the US repeat this message every Sunday. If you don’t believe it, you are some kind of anti-american anti-semite and should be exterminated. Or you could be a despicable Muslim terrorist to be waterboarded into confession. Homeland Security will make short work of you just like they did to those Russian Muslim terrorists in Boston who tried to blow up the Marathon race.

I mean, really, how can we indispensable people bring freedom and democracy to the world if the Russians have a naval base in our sea? How can we project strength if we project such weakness by permitting a foreign power’s presence in our exclusive sphere of influence many thousands of miles away from our borders. Don’t forget, America’s borders are the world’s borders. It says so in our song–”From sea to shining sea.” Don’t forget it.

Of course, we don’t want to go head-to-head with another well armed nuclear military power, but the way around that is to demonize the Syrian government and Russia for supporting an eye doctor who is “a brutal dictator” who is resisting an Islamist al-Qaeda takeover of Syria financed by Washington. Our masters in Washington can use the UN and all our well-paid puppet states to pressure the Russians to shut up and get out of our way. I mean, really, does Putin want all those Russian NGOs that we finance to bring their operatives out onto the streets in Moscow and bring down his government? I mean, really, who does Putin think he is standing up to our god-given hegemony over the world, much less Israel’s god-given hegemony over the Middle East? I mean, Putin is in for it, and so are those goddamn Chinese. I mean, really, who do they think they are? Americans? Don’t those Chinks know about our control of the Pacific? I mean, really, are they out to lunch?

And, I mean, really, how can all us get to heaven if we don’t do God’s will and deliver the Middle East to Israel as Israel says the scriptures require. I mean, really, do you want to oppose God and burn in hell? Instead of all those virgins Muslims promise you, you will be devoured by fire. You better get on the right side before you die.

I mean, really, who wants this fate. We had better get rid of Syria sooner than ordered.
If we don’t do what Israel tells us God requires, we are finished. That’s for sure.

The post If you want to go to heaven, you had better get busy overthrowing Syria — Paul Craig Roberts appeared first on PaulCraigRoberts.org.

Dear Readers,

A number of you have asked me my take on the Boston Marathon Bombing and subsequent events.

I am flattered that so many look to me for leadership on so many issues. However,
I have not followed closely the Boston event. My website hasn’t the resources to field an investigative team, and in my opinion the TV and print news is part of the misinformation or disinformation. While driving (April 19) I listened to a NPR program on the Boston bombing and was disheartened by the absence of hard questions and any thought.

Alex Jones has made a definitive statement that I lack the information to verify or contest. (See here: http://www.youtube.com/watch?v=axQtAFtmtVA )

The video shows numerous military type guys on the scene prior to the explosion in identical garb–black baseball hats with white insignia, black shirts or jackets, tan pants and combat boots with cell phones in their hands. All have identical backpacks.

The backpack straps match those on the remains of an exploded backpack, which the media has attributed to the backpack of one of the two brothers who are alleged to have committed the bombing. But they also match those of the guys who seem to move at ease among the police. No cop demands to search any of the backpacks.

The video also shows prior to the bombing bomb-sniffing dogs patrolling and the Boston Globe’s report that a mock bomb attack would be part of a drill at the marathon.

These documented facts have disappeared, to the extent that I have paid attention, from the media’s reports.

What strikes me about the event is the ease with which authorities were able to lockdown entire metropolitan areas, preventing US citizens from leaving their homes in order to go to their jobs, to doctor’s appointments, to the grocery store, or to walk their dogs. This is a precedent. It sets the stage for martial law, although it is not being called that, and for daylight curfews. Is this what Homeland Security meant two years ago when its leader said the agency had shifted its focus from terrorism to domestic extremists?

All of this is happening because of 4 or 5 deaths including one of the alleged perpetrators of the bombing. The response of the authorities is disproportionate to the crime.

Lockdowns of metropolitan areas because of a hunt for one guy that might be a patsy? This is a new development. It is ominous for our future as a free society.

The post Boston Marathon Bombing appeared first on PaulCraigRoberts.org.

The premium on a gold eagle over the spot price of gold is $72, and the premium on silver eagles over spot price of silver is about $6.

In effect, despite the takedown the price of a silver one troy ounce coin is about what it was prior to the takedown with the premium rising to offset the manipulated decline in price.

There are reports from around the world, such as oil rich Dubai, that bullion dealers cannot replenish their inventory as physical metal, as contrasted with the speculative paper claims which cannot be filled should delivery be demanded, is in short supply.

Either the lower price of bullion created by the manipulation or a growing public awareness that the manipulation was a dollar protection policy has resulted in an increase in global demand for physical bullion.

The inability of the US government to return Germany’s gold suggests that the US has no gold stocks. Most likely, the idiots in the government and among economists who think that gold is not money have let the gold be sold over the years in order to suppress the rate of its rise in price. One would think that the unwillingness or inability of the US government to return gold to an ally such as Germany would raise media suspicions and investigations, and cause Congress finally to send a delegation to see if there is any gold where it is supposed to be. Maybe Goldfinger got the gold after all.

Tuesday, April 16. The orchestrated attack on bullion in the paper gold market took the spot prices of gold and silver down on Friday and Monday, but actual physical purchases rose during this period. The sales were of paper claims, not of real metal.

The demand for physical possession of bullion rose so strongly that large wholesalers such as www.tulving.com and large retailers such as Gainesville Coins reported sold out items. Also, dealers raised the premiums above the spot price that is charged for coins. From Friday to Monday the premium on Silver Eagles at the large online retailer, Gainesville Coins, rose from $3.75 to $5.99 above the spot price of silver. The percentage increase in premium was larger than the percentage decline in the silver price. Thus, the price of a silver one Troy ounce coin did not drop despite the drop in the spot price. Today (April 16) the price of a silver eagle purchased with a credit card from retailer Gainesville Coins is $30.36. You would never know that the market had fallen out.

Today (Tuesday, April 16) Tulving reported 29% of its bar and coin bullion categories sold out and had almost no silver coin stock. The premium over spot on new gold eagles was $63.95. At large online retailers the premium was $71. Gainesville Coins has no silver Buffalos and lists shipment of orders to commence when coins are available, estimated to be May 10.

What I am reporting are facts, not a theory. We have just had two days of massive sales of paper claims on bullion, but during these days when the price of gold and silver collapsed under short sales, it was difficult to get your hands on the metal itself. On telephone orders you wait in long queues to place an order and are told that delivery awaits availability.

Listening to the media and to academic economists such as Paul Krugman, you would think no one any longer wants gold and silver. But try getting your hands on some.

The physical bullion market, gold especially, is dominated by Asians. Americans are a minor player. Most Americans still believe in the almighty dollar, but few Asians do. The Chinese tomorrow would dump their two trillion of US dollar-denominated assets and purchase gold, except that the action would drive down the dollar and drive up the gold price. So, unlike the orchestrated attack on gold, China plays a slow hand, using the orchestrated attack on gold to acquire the metal at lower prices.

As I understand it, the open interest or future contracts on COMEX greatly exceed the bullion available for delivery. This is a paper market mainly settled in cash, not by taking delivery. If the contracts had to be settled in bullion instead of cash, the COMEX would fail.

One advantage of growing old is that one gains perspective. I remember when gold was $35 an ounce and silver $1 an ounce. If memory serves, until sometimes in the 1960s, a person could still take a paper dollar to a bank and be given a silver dollar. There were $1 dollar and $5 dollar silver certificates (paper money) that circulated along with Federal Reserve currency. At that time banks did not differentiate. A dollar was a dollar. Silver certificates today have collectors’s value, but the Federal Reserve currency does not.

If memory serves, sometimes after 1966 if a person presented a silver certificate to a Federal Reserve Bank, he received one or five ounces or raw silver in return depending on the denomination of the certificate, which looked like a Federal Reserve note except it said Silver Certificate. I have some of these envelopes of little pieces of silver.

When silver was taken out of US coins in the 1960s and copper was taken out of the US penny in the early 1980s, despite my opposition as Assistant Secretary of the US Treasury for Economic Policy, all real constraints on fiat money were removed.

Today we see the Fed protecting its protection of “banks too big to fail” with low interest rates by creating enormous sums of money in order to purchase both Treasury bonds and mortgage backed derivatives.

These Fed purchasers are at the expense of savers and CD and bond purchasers who receive a negative real rate of interest.

Now, to protect its bank rescue policy, the Fed is attempting to drive down the price of bullion, thus depriving Americans of any way of protecting their life savings from the inflation that the Fed’s money printing will ultimately cause.

Save a handful of corrupt banks, screw the American public–that is the Fed’s policy.
Like almost every other American institution, the Fed represents the mega-rich.

Anyone with open eyes can see that it is impossible for the US dollar to maintain its current exchange value and role as world money when its supply is being increased by $1,000 billion per year while the world is ceasing to use the dollar for international payments.

The attack on gold is a desperate attempt to protect the US dollar from the Fed’s policy of quantitative easing. But the attack on bullion has apparently failed. The price was driven down, but the demand for physical possession has hit new highs.

What is it that we really know? What have we learned since the Clinton regime?

We have learned that integrity is rare in the US government, in the justice system, and in the financial sector. Whatever integrity one can find in these arenas wouldn’t amount to one ounce of gold.

Americans live in a rigged system in which propaganda determines the public’s awareness and consciousness. Americans, or most of them, live in the Matrix.

Since the end of WWII, most foreign governments have been in the habit of going along with Washington. Only in the aftermath of Washington’s phony wars based on lies and phony economy based on rigged statistics is the rest of the world beginning to realize that Washington is a destabilizing force.

Chavez, the recently deceased leader of Venezuela made the point most powerfully when he spoke at the UN. Standing at the podium in the General Assembly, he said that “Satan himself stood here yesterday speaking as if he owned the world. You can still smell the sulfur.” He was speaking of George W. Bush, and the entire assembly knew it.

The Russian leader, Putin, speaking of Washington, has declared that we know what comrade wolf is up to.

The Chinese can see the new military bases that stupid Washington is building in the Chinese area of influence.

A country whose currency is being abandoned as the means of international settlement, not only by the BRICS but also by puppet states such as Australia and Japan, has reached the point of absurdity when it tries to eliminate bullion as a refuge against the depreciating dollar.

The Federal Reserve and the US Treasury using their dependent bullion banks, every one of which would be busted if interest rates were not rigged by the Federal Reserve, have used leverage in the paper market to drive down the prices of gold and silver; yet, purchases of physical bullion are outrunning supplies.

What we are witnessing is the failure of a policy of financial corruption.

Integrity is a scarce commodity in the US government. Try to find much of it. Demonstrating a rare example of integrity, Brooksley Born resigned as head of the Federal Commodity Futures Trading Commission, because the Federal Reserve chairman, the US Treasury secretary, and the SEC chairman prevented her from during her statutory duty and regulating over the counter derivatives. The three morons who prevented her from doing her duty caused the financial collapse.

Integrity is almost non-existent in the US justice system.

Integrity is totally non-existent in the US financial system. As Michael Hudson has proven, the financialization of the economy has destroyed the economy.

With dollars, and now with Washington’s demand Japanese yen and European euros being printed in profusion, where can people put their money, at least those who still have some?

Can they put it in bonds when the Federal Reserve is monetizing debt at $1,000 billion annually and real interest rates are negative?

Can they put it in stocks that are pumped up by banks speculating with the Fed’s money while retail sales, labor force participation, and consumer incomes fall?

Safety can only be found in gold and silver, traditional, historical money that cannot be inflated.This is why bullion is under attack by Washington.

Readers ask me what they can do to protect themselves and where can they go to make gold and silver purchases.

I am not a registered financial advisor. I do not provide financial advice.

Every person must make their own decision. All I can do is to provide information, which is not guaranteed to be correct.

There are various simple options in contrast with the more demanding options of the professional trader. A person can accumulate gold and silver coins and keep them in a home safe or bury them on the property. A person can purchase shares of the Central Fund of Canada which convey ownership in a company that owns gold and silver bullion in a vault in Canada. A person can put money under management with companies that have a strong component of gold, such as Golden Returns Capital LLC whose gold depository is in the US.

Or you can decide to go with William S. Kaye (wskaye@pacgrp.com) whose depository is in Hong Kong.

There is GoldMoney, a Channel Islands based depository firm with storage vaults in London, Switzerland and Asia, and there is GoldSwitzerland, a Swiss company with its storage vault in Switzerland.

If you want a reading on whether physical gold is being sold or merely paper shorts, subscribe to John Brimelow brimelowgoldjottings@gmail.com

This list is not exhaustive. Protecting wealth can be harder than acquiring wealth. This is especially true for the middle class. The super rich can lose hundreds of millions of dollars and still be rich.

Gold and silver investments are not my speciality. I am an economist. I am aware that the US media is a propaganda organization, not a purveyor of truth. Currently the US is creating 1,000 billion dollars annually, but the demand for dollars is not growing with the supply.

Therefore, the exchange value of the dollar is at risk. A high and rising dollar price of bullion is an indication that the exchange value of the dollar with regard to other currencies is too high.

To protect the dollar from its money printing practice, the Fed has used naked shorts, its bullion bank dependents, and the presstitute media to drive down the gold price in the paper market, essentially an unreal market not inhabited by purchasers of physical metal. If the dollar’s exchange value takes a visible hit, import prices will rise, and the Fed will lose control over interest rates.

Meanwhile the demand for bullion possession rises.

The latest disinformation being put out is that bullion dealers, faced with the collapse of bullion prices, are afraid of the risk of purchasing bullion to sell to the public. They are going out of business and not replenishing their stocks. Gold and silver bullion is not available, because bullion dealers are afraid to stock the metals.

Little doubt that Americans who believe every fairy tale “their” government tells them will believe this one too. But those who don’t will observe the long lines waiting to purchase physical metal, not paper claims, and continue to load up on bullion.

The post Update to the Update: The Attack on Gold — Paul Craig Roberts appeared first on PaulCraigRoberts.org.

A fall in the dollar’s exchange rate would push up import prices and, thereby, domestic inflation, and the Fed would lose control over interest rates. The bond market would collapse and with it the values of debt-related derivatives on the “banks too big too fail” balance sheets. The financial system would be in turmoil, and panic would reign.

Rapidly rising bullion prices were an indication of loss of confidence in the dollar and were signaling a drop in the dollar’s exchange rate. The Fed used naked shorts in the paper gold market to offset the price effect of a rising demand for bullion possession. Short sales that drive down the price trigger stop-loss orders that automatically lead to individual sales of bullion holdings once their loss limits are reached.

According to Andrew Maguire, on Friday, April 12, the Fed’s agents hit the market with 500 tons of naked shorts. Normally, a short is when an investor thinks the price of a stock or commodity is going to fall. He wants to sell the item in advance of the fall, pocket the money, and then buy the item back after it falls in price, thus making money on the short sale. If he doesn’t have the item, he borrows it from someone who does, putting up cash collateral equal to the current market price. Then he sells the item, waits for it to fall in price, buys it back at the lower price and returns it to the owner who returns his collateral. If enough shorts are sold, the result can be to drive down the market price.

A naked short is when the short seller does not have or borrow the item that he shorts, but sells shorts regardless. In the paper gold market, the participants are betting on gold prices and are content with the monetary payment. Therefore, generally, as participants are not interested in taking delivery of the gold, naked shorts do not need to be covered with the physical metal.

In other words, with naked shorts, no physical metal is actually sold.

People ask me how I know that the Fed is rigging the bullion price and seem surprised that anyone would think the Fed and its bullion bank agents would do such a thing, despite the public knowledge that the Fed is rigging the bond market and the banks with the Fed’s knowledge rigged the Libor rate. The answer is that the circumstantial evidence is powerful.

Consider the 500 tons of paper gold sold on Friday. Begin with the question, how many ounces is 500 tons? There are 2,000 pounds to one ton. 500 tons equal 1,000,000 pounds. There are 16 ounces to one pound, which comes to 16 million ounces of short sales on Friday.

Who has 16 million ounces of gold? At the beginning gold price that day of about $1,550, that comes to $24,800,000,000. Who has that kind of money?

What happens when 500 tons of gold sales are dumped on the market at one time or on one day? Correct, it drives the price down. Investors who want to get out of large positions would spread sales out over time so as not to lower their sales proceeds. The sale took gold down by about $73 per ounce. That means the seller or sellers lost up to $73 dollars 16 million times, or $1,168,000,000.

Who can afford to lose that kind of money? Only a central bank that can print it.

I believe that the authorities would like to drive the gold price down further and will, if they can, hit the gold market twice more next week and put gold at $1,400 per ounce or lower. The successive declines could perhaps spook individual holders of physical gold and result in actual net sales of physical gold as people reduced their holdings of the metal.

However, bullion dealer Bill Haynes told kingworldnews.com that last Friday bullion purchasers among the public outpaced sellers by 50 to 1, and that the premiums over the spot price on gold and silver coins are the highest in decades. I myself checked with Gainesville Coins and was told that far more buyers than sellers had responded to the price drop.

Unless the authorities have the actual metal with which to back up the short selling, they could be met with demands for deliveries. Unable to cover the shorts with real metal, the scheme would be exposed.

Do the authorities have the metal with which to cover shorts? I do not know. However, knowledgeable dealers are suspicious. Some think that US physical stocks of gold were used up in sales in efforts to disrupt the rise in the gold price from $272 in December 2000 to $1,900 in 2011. They point to Germany’s recent request that the US return the German gold stored in the US, and to the US government’s reply that it would return the gold piecemeal over seven years. If the US has the gold, why not return it to Germany?

The clear implication is that the US cannot deliver the gold.

Andrew Maguire also reports that foreign central banks, especially China, are loading up on physical gold at the low prices made possible by the short selling. If central banks are using their dollar holdings to purchase bullion at bargain prices, the likely results will be pressure on the dollar’s exchange value and a declining market supply of physical bullion. In other words, by trying to protect the dollar from its quantitative easing policy, the Fed might be hastening the dollar’s demise.

Possibly the Fed fears a dollar crisis or derivative blowup is nearing and is trying to reset the gold/dollar price prior to the outbreak of trouble. If ill winds are forecast, the Fed might feel it is better positioned to deal with crisis if the price of bullion is lower and confidence in bullion as a refuge has been shaken.

In addition to short selling that is clearly intended to drive down the gold price, orchestration is also indicated by the advance announcements this month first from brokerage houses and then from Goldman Sachs that hedge funds and institutional investors would be selling their gold positions. The purpose of these announcements was to encourage individual investors to get out of gold before the big boys did. Does anyone believe that hedge funds and Wall Street would announce their sales in advance so the small fry can get out of gold at a higher price than they do?

If these advanced announcements are not orchestration, what are they?

I see the orchestrated effort to suppress the price of gold and silver as a sign that the authorities are frightened that trouble is brewing that they cannot control unless there is strong confidence in the dollar. Otherwise, what is the point of the heavy short selling and orchestrated announcements of gold sales in advance of the sales?

The post Assault On Gold Update — Paul Craig Roberts appeared first on PaulCraigRoberts.org.

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Chris Hedges Resigns From Human Rights Organization PEN

Chris Hedges Resigns From Human Rights Organization PEN
“I will not be participating as a speaker in the PEN World Voices Festival in May. I will not participate because of your decision to select Suzanne Nossel as Executive Director of the PEN American Center. This appointment makes a mockery of PEN as a human rights organization and belittles the values PEN purports to defend. I spent seven years in the Middle East, most of them as the Middle East Bureau Chief of The New York Times. The suffering of the Palestinians under Israeli occupation and the plight of those caught up in our imperial wars in countries such as Iraq are not abstractions to me. Nossel’s relentless championing of preemptive war—which under international law is illegal—as a State Department official along with her callous disregard for Israeli mistreatment of the Palestinians and her refusal as a government official to denounce the use of torture and use of extra-judicial killings, makes her utterly unfit to lead any human rights organization, especially one that has global concerns. PEN American Center, by appointing Nossel, has unwittingly highlighted its own failure to defend and speak out for our dissidents, especially Bradley Manning. I hereby resign from PEN. I will wait until the organization returns to its original mandate to defend those who are persecuted, including those within the United States, before returning to the organization.”
Sincerely,
Chris Hedges

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More about PEN: It is a global organization made up of writer members that advocates for free expression and other human rights causes. The chapter representing the eastern United States is called PEN American Center and was founded in 1922. Its membership has included Robert Frost, Tony Kushner, Langston Hughes, Thomas Mann, Arthur Miller, Susan Sontag, Salman Rushdie and John Steinbeck.
Read more about the controversy at Dissident Voice.

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couple more quotes from Chris Hedges:

“We have to grasp, as Marx and Adam Smith did, that corporations are not concerned with the common good. They exploit, pollute, impoverish, repress, kill, and lie to make money. They throw poor people out of homes, let the uninsured die, wage useless wars for profit, poison and pollute the ecosystem, slash social assistance programs, gut public education, trash the global economy, plunder the U.S. Treasury and crush all popular movements that seek justice for working men and women. They worship money and power.”
― Chris Hedges, The Death of the Liberal Class

“The corporations that profit from permanent war need us to be afraid. Fear stops us from objecting to government spending on a bloated military. Fear means we will not ask unpleasant questions of those in power. Fear permits the government to operate in secret. Fear means we are willing to give up our rights and liberties for promises of security. The imposition of fear ensures that the corporations that wrecked the country cannot be challenged. Fear keeps us penned in like livestock.”
― Chris Hedges, The Death of the Liberal Class

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http://dissidentvoice.org/2013/04/u-s-cooption-of-the-human-rights-movement-continues/#more-48267

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Paul Craig Roberts On Iran US Relations

As only Paul can do – a bit of realism.

The post Paul Craig Roberts On Iran US Relations appeared first on PaulCraigRoberts.org.

When gold prices hit $1,917.50 an ounce on August 23, 2011, a gain of more than $500 an ounce in less than 8 months, capping a rise over a decade from $272 at the end of December 2000, the Federal Reserve panicked. With the US dollar losing value so rapidly compared to the world standard for money, the Federal Reserve’s policy of printing $1 trillion annually in order to support the impaired balance sheets of banks and to finance the federal deficit was placed in danger. Who could believe the dollar’s exchange rate in relation to other currencies when the dollar was collapsing in value in relation to gold and silver.

The Federal Reserve realized that its massive purchase of bonds in order to keep their
prices high (and thus interest rates low) was threatened by the dollar’s rapid loss of value in terms of gold and silver. The Federal Reserve was concerned that large holders of US dollars, such as the central banks of China and Japan and the OPEC sovereign investment funds, might join the flight of individual investors away from the US dollar, thus ending in the fall of the dollar’s foreign exchange value and thus decline in US bond and stock prices.

Intelligent people could see that the US government could not afford the long and numerous wars that the neoconservatives were engineering or the loss of tax base and consumer income from offshoring millions of US middle class jobs for the sake of executive bonuses and shareholder capital gains. They could see what was in the cards, and began exiting the dollar for gold and silver.

Central banks are slower to act. Saudi Arabia and the oil emirates are dependent on US protection and do not want to anger their protector. Japan is a puppet state that is careful in its relationship with its master. China wanted to hold on to the American consumer market for as long as that market existed. It was individuals who began the exit from the US dollar.

When gold topped $1,900, Washington put out the story that gold was a bubble. The presstitute media fell in line with Washington’s propaganda. “Gold looking a bit bubbly” declared CNN Money on August 23, 2011.

The Federal Reserve used its dependent “banks too big to fail” to short the precious metals markets. By selling naked shorts in the paper bullion market against the rising demand for physical possession, the Federal Reserve was able to drive the price of gold down to $1,750 and keep it more or less capped there until recently, when a concerted effort on April 2-3, 2013, drove gold down to $1,557 and silver, which had approached $50 per ounce in 2011, down to $27.

The Federal Reserve began its April Fool’s assault on gold by sending the word to brokerage houses, which quickly went out to clients, that hedge funds and other large investors were going to unload their gold positions and that clients should get out of the precious metal market prior to these sales. As this inside information was the government’s own strategy, individuals cannot be prosecuted for acting on it. By this operation, the Federal Reserve, a totally corrupt entity, was able to combine individual flight with institutional flight. Bullion prices took a big hit, and bullishness departed from the gold and silver markets. The flow of dollars into bullion, which threatened to become a torrent, was stopped.

For now it seems that the Fed has succeeded in creating wariness among Americans about the virtues of gold and silver, and thus the Federal Reserve has extended the time that it can print money to keep the house of cards standing. This time could be short or it could last a couple of years.

However, for the Russians and Chinese, whose central banks have more dollars than they any longer want, and for the 1.3 billion Indians in India, the low dollar price for gold that the Federal Reserve has engineered is an opportunity. They see the opportunity that the Federal Reserve has given them to purchase gold at $350-$400 an ounce less than two years ago as a gift.

The Federal Reserve’s attack on bullion is an act of desperation that, when widely recognized, will doom its policy.

As I have explained previously, the orchestrated move against gold and silver is to protect the exchange value of the US dollar. If bullion were not a threat, the government would not be attacking it.

The Federal Reserve is creating $1 trillion new dollars per year, but the world is moving away from the use of the dollar for international payments and, thus, as reserve currency. The result is an increase in supply and a decrease in demand. This means a falling exchange value of the dollar, domestic inflation from rising import prices, and a rising interest rate and collapsing bond, stock and real estate markets. 

The Federal Reserve’s orchestration against bullion cannot ultimately succeed. It is designed to gain time for the Federal Reserve to be able to continue financing the federal budget deficit by printing money and also to keep interest rates low and debt prices high in order to support the banks’ balance sheets.

When the Federal Reserve can no longer print due to dollar decline which printing would make worse, US bank deposits and pensions could be grabbed in order to finance the federal budget deficit for couple of more years. Anything to stave off the final catastrophe.

The manipulation of the bullion market is illegal, but as government is doing it the law will not be enforced.  

By its obvious and concerted attack on gold and silver, the US government could not give any clearer warning that trouble is approaching. The values of the dollar and of financial assets denominated in dollars are in doubt.

Those who believe in government and those who believe in deregulation will be proved equally wrong. The United States of America is past its zenith. As I predicted early in the 21st century, in 20 years the US will be a third world country. We are halfway there.

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http://www.commondreams.org/view/2013/04/01-0?print

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I am offensive. Michael Hudson is offensive. Gerald Celente is offensive. Herman Daly is offensive. Nomi Prins is offensive. Pam Martens is offensive. Chris Hedges is offensive. Chris Floyd is offensive. John Pilger is offensive. Noam Chomsky is offensive. Harvey Silverglate is offensive. Naomi Wolf is offensive. Stephen Lendman is offensive. David Ray Griffin is offensive. Ellen Brown is offensive.

Fortunately, many others are offensive. But how long before being offensive becomes
being “an enemy of the state”?

Throughout history truth tellers have suffered and court historians have prospered. It is
the same today. Gerald Celente illustrates this brilliantly in the next issue of the Trends
Journal.

Over the past 35 years I have learned this lesson as a columnist. If you tell readers
what is really going on, they want to know why you can’t be positive. Why are you telling
us that there are bad happenings that can’t be remedied? Don’t you know that God
gave Americans the power to fix all wrongs? What are you? Some kind of idiot, an anti-American, a pinko-liberal-commie? If you hate America so much, why don’t you move to Cuba, Iran or China (or to wherever the current bogyman is located)?

The ancient Greeks understood this well. In Greek mythology, Cassandra was the prophetess who no one believed despite her 100 percent record of being right. Telling the truth to Americans or to Europeans is just as expensive as telling the truth to the Greeks in ancient mythology.

In America and everywhere in the Western world or the entire world, telling the truth is
unpopular. Indeed, in the USA telling the truth has been criminalized. Look for example at Bradley Manning, held for two years in prison without bail and without a trial in violation of the US Constitution, tortured for one year of his illegal confinement in violation of US and international law, and now put on trial by corrupt prosecutors for aiding “enemies of the US” by revealing the truth, as required of him by the US military code. US soldiers are required to report war crimes. When Bradley Manning’s superiors showed themselves to be indifferent to war crimes, Manning reported the crimes via WikiLeaks. What else does a soldier with a sense of duty and a moral conscience do when the chain of command is corrupt?

Julian Assange is another example. WikiLeaks has taken up the reporting function that the Western media has abandoned. Remember, the New York Times did publish the Pentagon Papers in 1971, which undermined the lies Washington had told both to the public and to Congress to justify the costly Vietnam War. But today no newspaper or TV channel any longer accepts the responsibility to truthfully inform the public. Julian Assange stepped into the vacuum and was immediately demonized, not merely by Washington but also by left-wing and right-wing media, including Internet. It was a combination of jealousy, ignorance, and doing Washington’s bidding.

Without WikiLeaks and Assange the world would know essentially nothing. Spin from Washington, the presstitute media, and the puppet state medias would prevail. So the word went out to destroy Julian Assange.

It is amazing how many people and Internet sites obeyed Washington’s command. Assange has been so demonized that even though he has been granted political asylum by Ecuador, the British government, obeying its Washington master, refuses to allow him safe passage out of the London Ecuador Embassy. Is Assange destined to live out his life inside the Ecuador Embassy in London?

Will Assange be a replay of Cardinal Jozsef Mindszenty who on November 4, 1956, sought asylum in the US embassy in Budapest as Soviet tanks poured into Hungary to put down the anti-communist revolution? Cardinal Mindszenty lived for 15 years in the US embassy. Today it is “freedom and democracy” amerika that is copying Soviet practices during the cold war.

In contrast with “freedom and democracy” US and UK, the “authoritarian,” “communist,” “oppressive” Chinese government when confronted with Chinese dissident Chen Guangcheng’s defection to the US embassy in Beijing, let him go.

It is an upside down world when America and the British refuse to obey international law, but the Chinese communists uphold international law.

Insouciant americans are undisturbed that alleged terrorists are tortured, held indefinitely in prison without due process, and executed on the whim of some executive branch official without due process of law.

Most americans go along with unaccountable murder, torture, and detention without evidence, which proclaims their gullibility to the entire world. There has never in history been a population as unaware as americans. The world is amazed that an insouciant people became, if only for a short time, a superpower.

The world needs intelligence and leadership in order to avoid catastrophe, but america can provide neither intelligence nor leadership. America is a lost land where nuclear weapons are in the hands of those who are concerned only with their own power. Washington is the enemy of the entire world and encompasses the largest concentration of evil on the planet.

Where is the good to rise up against the evil?

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http://www.infowars.com/paul-craig-roberts-triple-bubble-implosion-coming/

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http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/3/16_Former_US_Treasury_Official_-_US_Financial_System_To_Collapse.html

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On the Edge with Max Keiser-Latest on Global Financial Crisis-12-10-2010-(Part2)

PAUL CRAIG ROBERTS: MegaBanks, Elite, Cyprus, TRIPLE BUBBLE IMPLOSION & Economic Crisis.

PAUL CRAIG ROBERTS: MegaBanks, Elite, Cyprus, TRIPLE BUBBLE IMPLOSION & Economic Crisis. On today's show, Alex welcomes American economist and renowned colum…

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I receive numerous questions from readers about our economic situation and the condition of civil liberty. There is no way I can answer so many inquiries, and no need. I have written two books that provide the answers, and they are inexpensive. I have done my job. It is up to you to inform yourself. Kindle Reader software is available as a free online download that permits you to read ebooks in your own web browser. No Kindle device is required. Here are the URLs for Apple and PC free downloads: Kindle for PC: http://www.amazon.com/gp/feature.html?ie=UTF8&docId=1000426311
Kindle for Mac: http://www.amazon.com/gp/feature.html?ie=UTF8&docId=1000464931

My latest, The Failure Of Laissez Faire Capitalism And Economic Dissolution of the West, is available as an ebook in English as of March 2013 from Amazon.com and from Barnes&Noble. My book is endorsed by Michael Hudson and Nomi Prims and has a 5 star rating from Amazon reviewers (as of March 23, 2013). Pam Martens’ review at Wall Street On Parade is available here:
http://wallstreetonparade.com/2013/03/paul-craig-roberts’-primer-on-why-the-great-recession-is-the-new-normal/

Libertarians who have not read the book have had an ideological knee-jerk reaction to the title. They demand to know how can I call the present system of crony capitalism laissez faire. I don’t. The current system of government supported crony capitalism is the end result of a 25-year process of deregulation. Deregulation did not produce libertarian nirvana. It produced economic concentration and crony capitalism.

Amazon provides as a free read the introduction by Johannes Maruschzik to the German edition. Below is my Introduction to my book.

Not only has your economy been stolen from you but also your civil liberties. My coauthor Lawrence Stratton and I provide the scary details of the entire story in The Tyranny of Good Intentions. In the US law is no longer a shield of the people against arbitrary government. Instead, law has been transformed into a weapon in the hands of the government.

Josie Appleton documents that in England also law has been turned into a weapon against the people. http://www.spiked-online.com/site/printable/13420/ Anglo-American law, the foundation of liberty and one of the greatest human achievements, lies in ruins.

Libertarians think that liberty is a natural right, and some Christians think that it is a God-given right. In fact, liberty is a human achievement, fought for by Englishmen over the centuries. In the late 17th century, the achievement of the Glorious Revolution was to hold the British government accountable to law. William Blackstone heralded the achievement in his famous Commentaries On The Laws Of England, a bestseller in pre-revolutionary America and the foundation of the US Constitution.

In the late 20th century and early 21st century, governments in the US and Great Britain chafed under the requirement that government, like the people, is ruled by law and took steps to free government from accountability to law.

Appleton says that the result is a “tectonic shift in the relationship between the state and the citizen.” Citizens of the US and UK are once again without the protection of law and subject to arbitrary arrests and indictments or to indefinite detention in the absence of indictments.

In the US, citizens can be detained indefinitely and even executed without due process of law. There is no basis in the US Constitution for these asserted powers. The unconstitutional powers exist only because Congress, the judiciary and the American people have accepted the lie that the loss of civil liberty is the price paid for protection against terrorists.

In a very short time the raw power of the state has been resurrected. Most Americans are oblivious to this outcome. As long as government is imprisoning and killing without trials demonized individuals whom Americans have been propagandized to fear, Americans approve. Americans do not understand that a point is reached when demonization becomes unnecessary and that precedents have been established that revoke the Bill of Rights.

If you are educated by these two books, you will be better able to understand what is happening and, thus, you will be in a better position to survive what is coming.

Introduction to The Failure of Laissez Faire Capitalism and Economic
Dissolution of the West: Towards a New Economics for a Full World

The collapse of the Soviet Union in 1991 and the rise of the high speed Internet have proved to be the economic and political undoing of the West. “The End Of History” caused socialist India and communist China to join the winning side and to open their economies and underutilized labor forces to Western capital and technology. Pushed by Wall Street and large retailers, such as Wal-Mart, American corporations began offshoring the production of goods and services for their domestic markets. Americans ceased to be employed in the manufacture of goods that they consume as corporate executives maximized shareholder earnings and their performance bonuses by substituting cheaper foreign labor for American labor. Many American professional occupations, such as software engineering and Information Technology, also declined as corporations moved this work abroad and brought in foreigners at lower renumeration for many of the jobs that remained domestically. Design and research jobs followed manufacturing abroad, and employment in middle class professional occupations ceased to grow. By taking the lead in offshoring production for domestic markets, US corporations force the same practice on Europe. The demise of First World employment and of Third World agricultural communities, which are supplanted by large scale monoculture, is known as Globalism.

For most Americans income has stagnated and declined for the past two decades. Much of what Americans lost in wages and salaries as their jobs were moved offshore came back to shareholders and executives in the form of capital gains and performance bonuses from the higher profits that flowed from lower foreign labor costs. The distribution of income worsened dramatically with the mega-rich capturing the gains, while the middle class ladders of upward mobility were dismantled. University graduates unable to find employment returned to live with their parents.

The absence of growth in real consumer incomes resulted in the Federal Reserve expanding credit in order to keep consumer demand growing. The growth of consumer debt was substituted for the missing growth in consumer income. The Federal Reserve’s policy of extremely low interest rates fueled a real estate boom. Housing prices rose dramatically, permitting homeowners to monetize the rising equity in their homes by refinancing their mortgages.

Consumers kept the economy alive by assuming larger mortgages and spending the equity in their homes and by accumulating large credit card balances. The explosion of debt was securitized, given fraudulent investment grade ratings, and sold to unsuspecting investors at home and abroad.

Financial deregulation, which began in the Clinton years and leaped forward in the George W. Bush regime, unleashed greed and debt leverage. Brooksley Born, head of the federal Commodity Futures Trading Commission, was prevented from regulating over-the-counter derivatives by the chairman of the Federal Reserve, the Secretary of the Treasury, and the chairman of the Securities and Exchange Commission. The financial stability of the world was sacrificed to the ideology of these three stooges that “markets are self-regulating.” Insurance companies sold credit default swaps against junk financial instruments without establishing reserves, and financial institutions leveraged every dollar of equity with $30 dollars of debt.

When the bubble burst, the former bankers running the US Treasury provided massive bailouts at taxpayer expense for the irresponsible gambles made by banks that they formerly headed. The Federal Reserve joined the rescue operation. An audit of the Federal Reserve released in July, 2011, revealed that the Federal Reserve had provided $16 trillion–a sum larger than US GDP or the US public debt–in secret loans to bail out American and foreign banks, while doing nothing to aid the millions of American families being foreclosed out of their homes. Political accountability disappeared as all public assistance was directed to the mega-rich, whose greed had produced the financial crisis.

The financial crisis and plight of the banksters took center stage and prevented recognition that the crisis sprang not only from the financial deregulation but also from the expansion of debt that was used to substitute for the lack of growth in consumer income. As more and more jobs were offshored, Americans were deprived of incomes from employment. To maintain their consumption, Americans went deeper into debt.

The fact that millions of jobs have been moved offshore is the reason why the most expansionary monetary and fiscal policies in US history have had no success in reducing the unemployment rate. In post-World War II 20th century recessions, laid-off workers were called back to work as expansionary monetary and fiscal policies stimulated consumer demand. However, 21st century unemployment is different. The jobs have been moved abroad and no longer exist. Therefore, workers cannot be called back to factories and to professional service jobs that have been moved abroad.

Economists have failed to recognize the threat that jobs offshoring poses to economies and to economic theory itself, because economists confuse offshoring with free trade, which they believe is mutually beneficial. I will show that offshoring is the antithesis of free trade and that the doctrine of free trade itself is found to be incorrect by the latest work in trade theory. Indeed, as we reach toward a new economics, cherished assumptions and comforting theoretical conclusions will be shown to be erroneous.

This book is organized into three sections. The first section explains successes and failures of economic theory and the erosion of the efficacy of economic policy by globalism. Globalism and financial concentration have destroyed the justifications of market capitalism. Corporations that have become “too big to fail” are sustained by public subsidies, thus destroying capitalism’s claim to be an efficient allocator of resources. Profits no longer are a measure of social welfare when they are obtained by creating unemployment and declining living standards in the home country.

The second section documents how jobs offshoring or globalism and financial deregulation wrecked the US economy, producing high rates of unemployment, poverty and a distribution of income and wealth extremely skewed toward a tiny minority at the top. These severe problems cannot be corrected within a system of globalism.

The third section addresses the European debt crisis and how it is being used both to subvert national sovereignty and to protect bankers from losses by imposing austerity and bailout costs on citizens of the member countries of the European Union.

I will suggest that it is in Germany’s interest to leave the EU, revive the mark, and enter into an economic partnership with Russia. German industry, technology, and economic and financial rectitude, combined with Russian energy and raw materials, would pull all of Eastern Europe into a new economic union, with each country retaining its own currency and budgetary and tax authority. This would break up NATO, which has become an instrument for world oppression and is forcing Europeans to assume burdens of the American Empire.

Sixty-seven years after the end of World War II, twenty-two years after the reunification of Germany, and twenty-one years after the collapse of the Soviet Union, Germany is still occupied by US troops. Do Europeans desire a future as puppet states of a collapsing empire, or do they desire a more promising future of their own?

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See the video posted on USAWatchdog.com by clicking on the link below.

link to original post on Greg Hunter’s USAWatchdog.com : http://usawatchdog.com/crisis-they-cant-avoid-paul-craig-roberts/

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The US Secretary of State at that time, General Colin Powell, has expressed his regrets that he was used by the Bush regime to deceive the United Nations with fake intelligence that the Bush and Blair regimes knew to be fake. But the despicable presstitute media has not apologized to the American people for serving the corrupt Bush regime as its Ministry of Propaganda and Lies.

It is difficult to discern which is the most despicable, the corrupt Bush regime, the presstitutes that enabled it, or the corrupt Obama regime that refuses to prosecute the Bush regime for its unambiguous war crimes, crimes against the US Constitution, crimes against US statutory law, and crimes against humanity.

In his book, Cultures Of War, the distinguished historian John W. Dower observes that the concrete acts of war unleashed by the Japanese in the 20th century and the Bush imperial presidency in the 21st century “invite comparative analysis of outright war crimes like torture and other transgressions. Imperial Japan’s black deeds have left an indelible stain on the nation’s honor and good name, and it remains to be seen how lasting the damage to America’s reputation will be. In this regard, the Bush administration’s war planners are fortunate in having been able to evade formal and serious investigation remotely comparable to what the Allied powers pursued vis-a-vis Japan and Germany after World War II.”

Dower quotes Arthur Schlesinger Jr.: “The president [Bush] has adopted a policy of ‘anticipatory self-defense’ that is alarmingly similar to the policy that imperial Japan employed at Pearl Harbor on a date which, as an earlier American president said it would, lives in infamy. Franklin D. Roosevelt was right, but today it is we Americans who live in infamy.”

Americans paid an enormous sum of money for the shame of living in infamy. Joseph Stiglitz and Linda Bilmes calculated that the Iraq war cost US taxpayers $3,000 billion dollars. This estimate might turn out to be optimistic. The latest study concludes that the war could end up costing US taxpayers twice as much. http://www.reuters.com/article/2013/03/14/iraq-war-anniversary-idUSL1N0C5FBN20130314

In order to pay for the profits that have flowed into the pockets of the US military-security complex and from there into political contributions, Americans are in danger of losing Social Security, Medicare, and the social cohesiveness that the social welfare system provides.

The human cost to Iraq of America’s infamy is extraordinary: 4.5 million displaced Iraqis, as many as 1 million dead civilians leaving widows and orphans, a professional class that has departed the country, an infrastructure in ruins, and social cohesion destroyed by the Sunni-Shia conflict that was ignited by Washington’s destruction of the Saddam Hussein government.

It is a sick joke that the United States government brought freedom and democracy to Iraq. What the Washington war criminals brought was death and the destruction of a country.

The US population, for the most part, seems quite at ease with the gratuitous destruction of Iraq and all that it entails: children without parents, wives without husbands, birth defects from “depleted” uranium, unsafe water, a country without hope mired in sectarian violence.

Washington’s puppet state governments in the UK, Europe, the Middle East and Japan seem equally pleased with the victory–over what? What threat did the victory defeat? There was no threat. Weapons of mass destruction was a propaganda hoax. Mushroom clouds over American cities was fantasy propaganda. How ignorant do populations have to be to fall for such totally transparent propaganda? Is there no intelligence anywhere in the Western world?

At a recent conference the neoconservatives responsible for the deaths and ruined lives of millions and for the trillions of dollars that their wars piled on US national debt were unrepentant and full of self-justification. While Washington looks abroad for evil to slay, evil is concentrated in Washington itself. http://nationalinterest.org/blog/paul-pillar/still-peddling-iraq-war-myths-ten-years-later-8227

The American war criminals walk about unmolested. They are paid large sums of money to make speeches about how Americans are bringing freedom and democracy to the world by invading, bombing and murdering people. The War Crimes Tribunal has not issued arrest warrants. The US Department of State, which is still hunting for Nazi war criminals, has not kidnapped the American ones and sent them to be tried at the Hague.

The Americans who suffered are the 4,801 troops who lost their lives, the thousands of troops who lost limbs and suffer from other permanent wounds, the tens of thousands who suffer from post-traumatic stress and from the remorse of killing innocent people, the families and friends of the American troops, and the broken marriages and single-parent children from the war stress.

Other Americans have suffered on the home front. Those whose moral conscience propelled them to protest the war were beaten and abused by police, investigated and harassed by the FBI, and put on no-fly lists. Some might actually be prosecuted. The Unites States has reached the point where any citizen who has a moral conscience is an enemy of the state. The persecution of Bradley Manning demonstrates this truth.

A case could be made that the historians’ comparison of the Bush regime with Japanese war criminals doesn’t go far enough. By this October 7, Washington will have been killing people, mainly women, children, and village elders, in Afghanistan for 12 years. No one knows why America has brought such destruction to the Afghan people. First the Soviets; then the Americans. What is the difference? When Obama came into the presidency, he admitted that no one knew what the US military mission was in Afghanistan. We still don’t know. The best guess is profits for the US armaments industry, power for the Homeland Security industry, and a police state for the insouciant US population.

Washington has left Libya in ruins and internal conflict. There is no government, but it is not libertarian nirvana.

The incessant illegal drone attacks on Pakistani civilians is radicalizing elements of Pakistan and provoking civil war against the Pakistani government, which is owned by Washington and permits Washington’s murder of its citizens in exchange for Washington’s money payments to the political elites who have sold out their country to Washington.

Washington has destabilized Syria and destroyed the peace that the Assad family had imposed on the Islamic sects. Syria seems fated to be reduced to ruins and permanent violence like Libya and Iraq.

Washington is at work killing people in Yemen.

As the video released to WikiLeaks by Bradley Manning shows, some US troops don’t care who they kill–journalists and civilians walking peacefully along a street, a father and his children who stop to help the wounded. As long as someone is killed, it doesn’t matter who.

Killing is winning.

The US invaded Somalia, has its French puppets militarily involved in Mali, and perhaps has Sudan in its crosshairs for drones and missiles.

Iran and Lebanon are designated as the next victims of Washington’s aggression.

Washington protects Israeli aggression against the West Bank, Gaza, and Lebanon from UN censure and from embargoes. Washington has arrested and imprisoned people who have sent aid to the Palestinian children. Gaza, declares Washington which regards itself as the only fount of truth, is ruled by Hamas, a terrorist organization according to Washington. Thus any aid to Gaza is aid to terrorism. Aide to starving and ill Palestinian children is support of terrorism. This is the logic of an inhumane war criminal state.

What is this aggression against Muslims about?

The Soviet Union collapsed and Washington needed a new enemy to keep the US military/security complex in power and profits. The neoconservatives, who totally dominated the Bush regime and might yet dominate the Obama regime declared Muslims in the Middle East to be the enemy. Against this make-believe “enemy,” the US launched wars of aggression that are war crimes under the US imposed Nuremberg standard that was applied to the defeated WWII Germans.

Although the British and French started World War II by declaring war on Germany, it was Germans, defeated by the Red Army, who were tried by Washington as war criminals for starting a war. A number of serious historians have reached the conclusion that America’s war crimes, with the fire-bombings of the civilian populations of Dresden and Tokyo and the gratuitous nuclear attacks on the civilian populations of Hiroshima and Nagasaki, are of the same cloth as the war crimes of Hitler and the Japanese.

The difference is that the winners paint the defeated in the blackest tones and themselves in high moral tones. Honest historians know that there is not much difference between US WWII war crimes and those of the Japanese and Germans. But the US was on the winning side.

By its gratuitous murder of Muslims in seven or eight countries, Washington has ignited a Muslim response: bitter hatred of the United States. This response is termed “terrorism” by Washington and the war against terrorism serves as a source of endless profits for the military complex and for a police state to “protect” Americans from terrorism, but not from the terrorism of their own government.

The bulk of the American population is too misinformed to catch on, and the few who do
understand and are attempting to warn others will be silenced. The 21st century will be one of the worst centuries in human history. All over the Western world, liberty is dying.

The legacy of “the war on terror” is the death of liberty.

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The Failure of Laissez Faire Capitalism and Economic Dissolution of the West

http://usawatchdog.com/crisis-they-cant-avoid-paul-craig-roberts/ Economist Paul Craig Roberts says massive deregulation caused all the ongoing financial pro…

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America, we were told, was moving upscale. Our new role in the world economy was to innovate and develop the new products that the dirty fingernail economies would produce. The money was in the innovation, they said, not in the simple task of production.

As I consistently warned, the “high-wage service economy based on imagination and ingenuity” that Harvard professor and offshoring advocate Michael Porter promised us as our reward for giving up dirty fingernail jobs was a figment of Porter’s imagination.

Over the decade I repeated myself many times: “Innovation takes place where things are made. Innovation will move abroad with the manufacturing.”

This is not what corporations or their shills such as Porter wanted to hear. Corporations were boosting their profits by getting rid of their American employees and replacing them with lowly paid foreigners. Porter’s job was to reassure the sheeple so that no outcry would materialize against the greed that was hollowing out the US economy.

Now comes a study conducted by 20 MIT professors and their graduate students that concludes on the basis of the facts that “the loss of companies that can make things will end up in the loss of research than can invent them.” http://www.manufacturingnews.com/news/mit0305131.html

I am pleased to be vindicated by MIT. Of course, the professors are too late. The loss has already occurred. Nevertheless, it will be interesting to see if the MIT professors can be heard through the orchestrated disinformation.

Two years ago in 2011 a Nobel prize-winning economist, Michael Spence, confirmed my decade-old conclusion that the US economy no longer had the capability to create any jobs except low-wage domestic service jobs that do not produce tradable goods and services that can be exported to reduce the massive US trade deficit. Spence validated my argument that the “new economy” was the offshored economy. Spence concluded that the outlook for the US economy and US employment is dire. The US faces “a long-term structural challenge with respect to the quantity and quality of employment opportunities in the United States. A related set of challenges concerns the income distribution; almost all incremental employment has occurred in the non-tradable sector, which has experienced much slower growth in value added per employee. Because that number is highly correlated with income, it goes a long way to explain the stagnation of wages across large segments of the workforce.” http://www.cfr.org/industrial-policy/evolving-structure-american-economy-employment-challenge/p24366

There has been no more public policy response to Spence’s conclusion than to my identical conclusion.

We have heard all our lives that ideas are the most powerful force and prevail over material interests. Perhaps this was once true, but that would have been in previous times when material interests did not control the media, the universities, and the publishing companies along with the government. Voices such as mine, that of a high US Treasury official, and that of Spence, a Nobel prize winner, cannot compete with the voices paid by Big Money. Today the bulk of the population knows nothing except the propaganda fed to them by the oligarchic interests. They sit in front of Fox News or CNN and ingest it all. Those who fancy themselves more sophisticated get the same dose of lies from the New York Times.

If those who speak truth cannot be bought off or shut up, they are ignored or demonized. Almost everything Americans need to know is off limits in public discussion. Anyone who broaches the truth becomes an “anti-American,” a “terrorist sympathizer,” a “commie-socialist,” a “conspiracy theorist,” an “anti-semite,” a “kook,” or some other name designed to scare Americans away from the message of truth.

The corrupt corporations, the corrupt media, and the corrupt US government have insulated the country from truth. The result will be a massive crash. A country built on lies is like a house built on sand:

“Therefore everyone who hears these words of mine and puts them into practice is like a wise man who built his house on the rock. The rain came down, the streams rose, and the winds blew and beat against that house; yet it did not fall, because it had its foundation on the rock [truth]. But everyone who hears these words of mine and does not put them into practice is like a foolish man who built his house on sand [lies].The rain came down, the streams rose, and the winds blew and beat against that house, and it fell with a great crash.” Matthew 7:24-27 (NIV)

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Chavez was not an enemy of America. He was an enemy of Washington’s hegemony over other countries, an enemy of Washington’s alliance with elite ruling cliques who steal from the people they grind down and deny sustenance. He was an enemy of Washington’s injustice, of Washington’s foreign policy based on lies and military aggression, bombs and invasions.

Washington is not America. Washington is Satan’s home town.

Chavez was a friend of truth and justice, and this made him unpopular throughout the Western World where every political leader regards truth and justice as dire threats.

Chavez was a world leader. Unlike US politicians, Chavez was respected throughout the non-western world. He was awarded honorary doctorates from China, Russia, Brazil, and other countries, but not from Harvard, Yale, Cambridge, and Oxford.

Chavez was a miracle. He was a miracle, because he did not sell out to the United States and the Venezuelan elites. Had he sold out, Chavez would have become very rich from oil revenues, like the Saudi Royal Family, and he would have been honored by the United States in the way that Washington honors all its puppets: with visits to the White House. He could have become a dictator for life as long as he served Washington.

Each of Washington’s puppets, from Asia to Europe and the Middle East, anxiously awaits the invitation that demonstrates Washington’s appreciation of his or her servitude to the global imperialist power that still occupies Japan and Germany 68 years after World War II and South Korea 60 years after the end of the Korean War and has placed troops and military bases in a large number of other “sovereign” countries.

It would have been politically easy for Chavez to sell out. All he had to do was to continue populist rhetoric, promote his allies in the army, throw more benefits to the underclass than its members had ever previously experienced, and divide the rest of the oil revenues with the corrupt Venezuelan elites.

But Chavez was a real person, like Rafael Correa, the three-term elected president of Ecuador, who stood up to the United States and granted political asylum to the persecuted Julian Assange, and Evo Morales, the first indigenous president of Bolivia since the Spanish conquest. The majority of Venezuelans understood that Chavez was a real person. They elected him to four terms as president and would have continued electing him as long as he lived. What Washington hates most is a real person who cannot be bought.

The more the corrupt western politicians and media whores demonized Chavez, the more Venezuelans loved him. They understood completely that anyone damned by Washington was God’s gift to the world.

It is costly to stand up to Washington. All who are bold enough to do so are demonized. They risk assassination and being overthrown in a CIA-organized coup, as Chavez was in 2002. When CIA-instructed Venezuelan elites sprung their coup and kidnapped Chavez, the coup was overthrown by the Venezuelan people who took to the streets and by elements of the military before Chavez could be murdered by the CIA-controlled Venezuelan elites, who escaped with their own venal lives only because, unlike them, Chavez was humanitarian. The Venezuelan people rose in instantaneous and massive public defense of Chavez and put the lie to the Bush White House claim that Chavez was a dictator.

Showing its sordid corruption, the New York Times took the side of the undemocratic coup by a handful of elitists against the democratically elected Chavez, and declared that Chavez’s removal by a small group of rich elites and CIA operatives meant that “Venezuelan democracy is no longer threatened by a would-be dictator.”

The lies and demonization continue with Chavez’s death. He will never be forgiven for standing up for justice. Neither will Correa and Morales, both of whom are no doubt on assassination lists.

CounterPunch, Fairness & Accuracy in Reporting, and other commentators have collected examples of the venom-spewing obituaries that the western presstitutes have written for Chavez, essentially celebrations that death has silenced the bravest voice on earth. http://www.counterpunch.org/2013/03/08/obituaries-for-hugo-chavez/
http://fair.org/take-action/media-advisories/in-death-as-in-life-chavez-target-of-media-scorn/

Perhaps the most absurd of all was Associated Press business reporter Pamela Sampson’s judgment that Chavez wasted Venezuela’s oil wealth on “social programs including state-run food markets, cash benefits for poor families, free health clinics and education programs,” a poor use of money that could have been used to build sky scrappers such as “the world’s tallest building in Dubai and branches of the Louvre and Guggenheim museums in Abu Dhabi.”
http://www.fair.org/blog/2013/03/06/ap-chavez-wasted-his-money-on-healthcare-when-he-could-have-built-gigantic-skyscrapers/

Among the tens of millions of Washington’s victims in the world–the people of Afghanistan, Iraq, Libya, Sudan, Pakistan, Yemen, Somalia, Syria, Palestine, Lebanon, Mali, with Iran, Russia, China, and South America waiting in the wings for sanctions, destabilization, conquest or reconquest, Chavez’s September 20, 2006 speech at the UN General Assembly during the George W. Bush regime will stand forever as the greatest speech of the early 21st century.

Chavez beards the lion, or rather Satan, in his own den:

“Yesterday, the devil himself stood right here, at this podium, speaking as if he owned the world. You can still smell the sulfur.”

“We should call a psychiatrist to analyze yesterday’s statement made by the president of the United States. As the spokesman of imperialism, he came to share his nostrums, to try to preserve the current pattern of domination, exploitation and pillage of the peoples of the world. An Alfred Hitchcock movie could use it as a scenario. I would even propose a title: ‘the Devil’s Recipe.’”

The UN General Assembly had never heard such words, not even in the days when the militarily powerful Soviet Union was present. Faces broke out in smiles of approval, but no one dared to clap. Too much US money for the home country was at stake. [A reader pointed out that although Chavez's speech was not interrupted with clapping, he received a healthy round of applause at the end.]

The US and UK delegations fled the scene, like vampires confronted with garlic and the Cross or werewolves confronted with silver bullets.

Chavez spoke about the false democracy of elites that is imposed by force and on others by “weapons and bombs.” Chavez asked, “What type of democracy do you impose with Marines and bombs?”

Wherever George W. Bush looks, Chavez said, “he sees extremists. And you, my brother–he looks at your color, and he says, oh, there’s an extremist. Evo Morales, the worthy president of Bolivia, looks like an extremist to him. The imperialists see extremists everywhere. It is not that we are extremists. It is that the world is waking up. It is waking up all over and people are standing up.”

In two short sentences totaling 20 words, Chavez defined for all times early 21st century Washington: “The imperium is afraid of truth, is afraid of independent voices. It calls us extremists, but they are the extremists.”

Throughout South America and the non-western world, Chavez’s death is being blamed on Washington. South Americans are aware of the US congressional hearings in the 1970s when the Church Committee brought to light the various CIA schemes to poison Fidel Castro.

The official document presented to President John F. Kennedy by the US Joint Chiefs of Staff, known as the Northwoods Project, is known to the world and is available online. The Northwoods project consisted of a false flag attack on American citizens in order to blame Cuba and create public and world acceptance for US-imposed regime change in Cuba. President Kennedy rejected the proposal as inconsistent with morality and accountable government. http://en.wikipedia.org/wiki/Operation_Northwoods

The belief has already hardened in South America that Washington with its hideous technologies of death infected Chavez with cancer in order to remove him as an obstacle to Washington’s hegemony over South America.

This belief will never die: Chavez, the greatest South American since Simon Bolivar, was murdered by Washington. True or false, the belief is set in stone. As Washington and globalism destroy more countries, the lives of elites become more precarious.

President Franklin Delano Roosevelt understood that security for the rich required economic security for the underclasses. Roosevelt established in the US a weak form of social democracy that European politicians had already understood was necessary for social cohesion and political and economic stability.

The Clinton, Bush, and Obama regimes set about undermining the stability that Roosevelt provided, as Thatcher, Major, Blair, and the current prime minister of the UK undermined the social agreement between classes in the UK. Politicians in Canada, Australia, and New Zealand also made the mistake of handing power over to private elites at the expense of social and economic stability.

Gerald Celente predicts that the elites will not survive the hatred and anger that they are bringing upon themselves. I suspect that he is correct. The American middle class is being destroyed. The working class has become a proletariat, and the social welfare system is being destroyed in order to reduce the budget deficit caused by the loss of tax revenues to jobs offshoring and the expense of wars, overseas military bases, and financial bailouts. The American people are being compelled to suffer in order that elites can continue with their agendas.

The US elites know what is coming. That is why they created a Nazi-style Ministry of the Interior known as Homeland Security, armed with enough ammunition to kill every American five times and with tanks to neutralize the Second Amendment rights of Americans. http://www.informationclearinghouse.info/article34259.htm
http://www.forbes.com/sites/ralphbenko/2013/03/11/1-6-billion-rounds-of-ammo-for-homeland-security-its-time-for-a-national-conversation/

Pistols and rifles are useless against tanks, as the Branch Davidians found out in Waco, Texas. The protection of a small handful of elites from the Americans they are oppressing is also the reason the police are being militarized, brought under Washington’s control and armed with drones that can assassinate the real leaders of the American people who will be, not in the legislative, executive, or judicial chambers, but in the streets. http://www.globalresearch.ca/the-militarization-of-law-enforcement-in-america-use-of-military-technology-and-tactics-by-local-level-police/5326303

Internment camps in the US appear to be real and not a conspiracy theory. http://www.youtube.com/watch?v=FfkZ1yri26s
http://info.publicintelligence.net/USArmy-InternmentResettlement.pdf

The threat that the US government poses to its own citizens was recognized on March 7, 2013, by two US Senators, Ted Cruz (R-TX) and Rand Paul (R-KY), who introduced a bill to prevent the US government from murdering its own citizens: “The Federal Government may not use a drone to kill a citizen of the United States who is located in the United States” unless the person “poses an imminent threat of death or serious bodily injury to another individual. Nothing in this section shall be construed to suggest that the Constitution would otherwise allow the killing of a citizen of the United States in the United States without due process of law.” http://www.cruz.senate.gov/record.cfm?id=339952

The “indispensable people” with their presidents Bush and Obama have begun the 21st century with death and violence. That is their only legacy.

The death and violence that Washington has unleashed will come back to Washington and to the corrupt political elites everywhere. As Gerald Celente says, the first great war of the 21st century has begun.

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Where are these alleged jobs? The BLS says 48,000 were created in construction. That is possible, considering that revenue-starved real estate developers are misreading the housing situation. http://www.counterpunch.org/2013/03/08/us-housing-is-the-recovery-real/print

Then there are 23,700 new jobs in retail trade, which is hard to believe considering the absence of consumer income growth and the empty parking lots at shopping malls.

The real puzzle is 20,800 jobs in motion picture and sound recording industries. This is the first time in the years that I have been following the jobs reports that there has been enough employment for me to even notice this category.

The BLS lists 10,900 jobs in accounting and bookkeeping, which, as it is approaching income tax time, is probably correct; 21,000 jobs in temporary help and business support services; 39,000 jobs in health care and social assistance; and 18,800 jobs in the old standby–waitresses and bartenders.

That leaves about 50,000 jobs sprinkled around the various categories, but not in numbers large enough to notice.

The presstitute media attributed the drop in the headline unemployment rate (U3) to 7.7% from 7.9% to the happy jobs report. But Rex Nutting at Market Watch says that the unemployment rate fell because 130,000 unemployed people who have been unable to find a job and became discouraged were dropped out of the U3 measure of unemployment. The official U6 measure which counts some discouraged workers shows an unemployment rate of 14.3%. Statistician John Williams’ measure, which counts all discourage workers (people who have ceased looking for a job), is 23%.

In other words, the real rate of unemployment is 2 to 3 times the reported rate.

Nutting believes that the U3 unemployment rate has become too politicized to have any meaning. He suggests using instead the work force participation rate. This rate is falling substantially, reflecting the discouragement that occurs from inability to find jobs.

John Williams (shadowstats.com) says that distortions in seasonal factor adjustments overstate monthly payroll employment by about 100,000 jobs. The jobs data that is not seasonally adjusted shows about 1.5 million fewer jobs in the economy.

In a recent communication, statistician John Williams (shadowstats.com) reports that the rigged official annual rate of consumer inflation (CPI) of 1.6% is in fact, as measured by the official US government methodology of 1990, 9.2%. In other words, the rate of inflation is 5.75 times greater than the reported rate. If Williams is correct, the interest rate on bonds is extremely negative.

Over the years the official measure of inflation has been altered in two ways. One is the introduction of substitution for what formerly was a constant weighted basket of goods. In the former measure, if a price of an item in the basket (index) rose, the CPI rose by the weight of that item in the basket.

In the substitution-based measure, if a price of an item in the basket goes up, the item is removed from the basket, and a cheaper item is put in its place. For example, if the price of New York strip steak rises, the new CPI will substitute the price of a cheaper cut.

In this new measure, inflation is held down by measuring not a fixed standard of living but a declining standard of living.

The other adjustment used to restrain the measure of inflation is to re-classify many price rises as “quality improvements.” Price rises declared to be quality improvements do not translate into a higher measure of inflation. In other words, if a product rises in price, the price increase or some portion of it can be assigned to improved quality, not to a rise in component or energy costs. As the incentive is to hold down the inflation measure in order to save money for the government on Social Security cost-of-living-adjustments, quality improvements are over-estimated.

Consumers have to pay the higher prices, and as incomes, except for the 1 percent, are not growing, higher product prices, regardless of whether they are or are not quality improvements, mean a lower standard of living for the 99 percent.

The understated new measure of inflation allows the government to show real GDP growth and thus the end of the December 2007 recession, and it allows the government to show in the latest report real retail sales again matching the pre-recession level. However, when measured correctly, as by statistician John Williams, the true picture of retail sales shows a steep decline from 2007 through 2009 and bottom bouncing since.

The reason real retail sales cannot recover is that real average weekly earnings continues its downward path. Earlier in this new century, the lack of income growth for the bulk of the US population was masked by a rise in consumer debt. Americans borrowed to spend, and this kept the economy going until the point was reached that consumers had more debt than they could service.

John Williams report of real average weekly earnings shows that Americans are taking home less purchasing power than they did in the 1960s and 1970s.

Reflecting the dollar’s loss of purchasing power, the price of gold and silver in dollars has risen dramatically during the Bush and Obama regimes.

For the last year or two the Federal Reserve and its dependent banks have operated to cap the price of gold at around $1,750. They do this by selling naked shorts in the paper speculative gold market.

There are two gold markets. One is a market for physical possession by individuals and central banks. The rising demand in the physical bullion market points to a rising price for gold.

The other market is the speculative paper market in which financial institutions bet on the future gold price. By placing large amounts of shorts, this market can be used to suppress price rises in the physical market. The Federal Reserve, which can print money without limit, can cover any losses on its agents’ paper contracts.

It is important to the Federal Reserve’s low interest rate policy to suppress the bullion price. If the prices of gold and silver continue to rise relative to the US dollar, the Fed cannot keep the prices of bonds high and interest rates low. If the dollar is widely perceived to be declining in value in relation to gold, the price of dollar-denominated assets will also decline, including bonds. If the dollar loses value, the Fed loses control over interest rates, and the US financial bubble pops, with hell to pay.

To forestall armageddon, the Fed and its dependent banks cap the price of gold.

The Fed’s fix is temporary, and as the Fed continues to create ever more dollars, the price of gold will eventually escape the Fed’s control as will interest rates and inflation.

The Fed has produced a perfect storm that could consume the US and perhaps the entire Western world.

Dr. Roberts was Assistant Secretary of the US Treasury for Economic Policy in the Reagan Administration. He was associate editor and columnist with the Wall Street Journal, columnist for Business Week, and the Scripps Howard News Service. He has had numerous university appointments. His latest book, The Failure Of Laissez Faire Capitalism And Economic Dissolution Of The West, is available online.

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John N. Gray, a distinguished intellect and retired professor of intellectual history at the London School of Economics, disagrees with the view that “the end of history” has placed humanity on a course of ethical and economic progress. History, Gray believes, is not progressing to a higher stage. Instead, humanity is repeating the same follies and is destined to endure the same disasters. It is the Enclosures, the Repeal of the Corn Laws, and the Poor Law Act of 1834 all over again.

The problem is humans themselves. They are not questioning beings. “Human beings use the power of scientific knowledge to assert and defend the values and goals they already have.” Instead of ethics and politics having advanced with the growth of knowledge, we are experiencing today state terror and murder on unprecedented scale as Washington kills people with drones and invasions in seven countries and threatens others. The US claims to be the democratic “light unto the world,” the “indispensable nation,” but it has resurrected in violation of its own law and international law the torture dungeons of the unaccountable governments of medieval Europe.

Few people see the disconnect between the propaganda about the goodness of America and the evil that its government practices. Torture was banned. Its practice was made the act of a war criminal government. But the Bush and Obama regimes have resurrected torture as a defense of the state against citizens who reveal its crimes and against those who resist its aggression.

The CIA official who revealed that the US government was torturing detainees in violation of US and international law, John Kiriakou, was subjected to wrongful prosecution and sentenced to prison. The elected officials who approved the torture and those who conducted the torture remain free of all charges to torture again.

Bradley Manning, the US soldier who did his duty under the military code and revealed US war crimes that were ignored by his superiors had all of his constitutional rights violated and is now being tried on trumped-up and false charges. The US government claims that by telling the truth Manning aided the “enemies of the United States.”

The US government is so corrupt that it doesn’t realize the self-damnation of declaring the truth to be against it. Some “light unto the world” Washington is.

The myths to which Americans subscribe are resulting in their social, political, and economic destruction. In False Dawn: The Delusions Of Global Capitalism, John Gray lays out the destructive consequences of the free market ideology.

Gray demonstrates that the libertarian belief that free markets are something that the government suppresses and takes away from us is contradicted by the historical fact that “free markets are creatures of state power, and persist only so long as the state is able to prevent human needs for security and the control of economic risk from finding political expression.”

Free unregulated markets have existed only during short periods of history when state power and economic conditions were conducive to the imposition of unregulated markets. Unregulated markets existed for awhile in Victorian England, and Clinton, Bush, Obama, Thatcher and politicians in Australia, and New Zealand have removed regulation from various economic activities from the 1980s through the present.

The evidence is in and piles up daily. Instability is on the rise, and with it has come economic insecurity. Homelessness is increasing. In the last decade, New York City has experienced a 73 percent increase in homelessness, while the net worth of the city’s mayor has risen to $27 billion. http://www.salon.com/2013/03/05/new_york_homelessness_sees_unprecedented_rise/singleton/ Deregulation of the financial system produced such massive instability that the Federal Reserve had to lend the banks $16 trillion (a sum equal to US national debt). The Federal Reserve is in the fourth year of monetizing $1 trillion annually of US debt, raising the specter of dollar devaluation and inflation. Once great manufacturing cities, such as Detroit, are in steep decline. Real interest rates are negative, depriving retirees of interest income. The high unemployment rate of recent university graduates, despite an alleged economic recovery, proves that education is no longer the answer. Millions of jobs have disappeared. Unemployment is high. Poverty has increased as has the number of Americans on food stamps. The once vibrant American middle class is disappearing. The blue-collar working class is being proletarianized. Labor arbitrage across national borders has destroyed millions of US manufacturing and professional service jobs such as software engineering. What was formerly the incomes of millions of Americans was turned into incomes for Chinese, Indians, and into capital gains for shareholders and mega-million dollar bonuses for the corporate CEOs who offshored the Americans’ jobs and banked the lower labor costs as profits. One result has been a massive increase in US income and wealth inequality. The US now has the worst economic inequality of all developed countries and one of the worst in the entire world. This 6 minute video will give you a visual picture: http://www.youtube.com/watch?v=QPKKQnijnsM&feature=youtu.be Another result has been the shrinking of the American consumer market and the reliance on debt instead of income gains to keep the economy going, an expedient now exhausted by the high debt levels of American households.

The lost tax revenues from offshoring now threaten social institutions put in place decades ago in order to reduce economic insecurity and improve social cohesion. Social Security and Medicare are under attack, but not the wars that are the vehicle for spreading US hegemony and “democratic capitalism.” Even the concept of a career is vanishing as the pace of economic instability forces people into ever different jobs if they can find replacements for the ones they lose. Free unregulated markets disconnect economic activity from human well-being. As Gray says, markets are supposed to serve man, not man the market.

The neoconservative belief that America possesses the only true way–”democratic capitalism”–is a delusion. Gray shows that “democracy and the free market are rivals, not allies.” Free markets are not sustainable in a democracy, because free markets erode stability, security, and social cohesion. Free markets existed for a short time in Victorian England, because “the franchise was small and the overwhelming majority of the population was excluded from political participation.” Gray concludes that the American project of constructing a worldwide free market in an age of democratic government requires the instabilities and insecurities that free markets create to be protected from democratic politics and insulated from correction and reform.

We see everywhere in the West the effort to insulate the political process from the people it governs. In the US, the two political parties represent the few powerful private interests that supply their campaign funds. In the EU, Brussels is using the sovereign debt crisis to compromise the sovereignty of the member countries and remove their accountability to the people. In the US, Homeland Security has purchased a billion rounds of ammunition and 3,000 tanks. These purchases are not directed at the rare or nonexistent terrorist, but at the US population. They are Washington’s response to the social and political instability for which deregulation has set the stage.

Gray concludes that a global free market is a project destined to fail, and its casualty list will be long. Insecurities will rise everywhere as globalism sets countries against one another in geo-political struggles to control dwindling natural resources that no country or institution has any responsibility to conserve. History is returning, and the neoconservatives will be remembered, if at all, as another utopian movement, a collection of bloody fools.

Gray’s conclusion is consistent with the trends that Gerald Celente forecasts: currency wars, trade wars, political upheavals, and hot wars.

Libertarians will be the last to comprehend that the return of crony capitalism, robber barons, and economic insecurity is the direct consequence of a quarter century of deregulation. As I show in my new book, The Failure of Laissez Faire Capitalism And Economic Erosion Of The West, it is the failure of the latest laissez faire experiment that has saddled us with crony capitalism. Monopoly concentration and rule by the few, not Libertarian nirvana, is what deregulation and unbridled greed produce.

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Election and Democracy Excerpts – Paul Craig Roberts

Craig Anniversary

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The post The Western Economic Crisis appeared first on PaulCraigRoberts.org.

The recovery exists only in the official measure of real GDP, which is deflated by an understated measure of inflation, and in the U.3 measure of the unemployment rate, which is declining because it does not count discouraged job seekers who have given up looking for a job.

No other data series indicates an economic recovery. Neither real retail sales nor housing starts, consumer confidence, payroll employment, or average weekly earnings indicate economic recovery.

Neither does the Federal Reserve’s monetary policy. The Fed’s expansive monetary policy of bond purchases to maintain negative real interest rates continues 3.5 years into the recovery. Of course, the reason for the Fed’s negative interest rates is not to boost the economy but to boost asset values on the books of “banks too big to fail.”

The low interest rates raise the prices of the mortgage-backed derivatives and other debt-related assets on the banks’ balance sheets at the expense of interest income for retirees on their savings accounts, money market funds, and Treasury bonds.

Despite recovery’s absence and the lack of job opportunities for Americans, Republicans in Congress are sponsoring bills to enlarge the number of foreigners that corporations can bring in on work visas. The large corporations claim that they cannot find enough skilled Americans. This is one of the most transparent of the constant stream of lies that we are told.

Foreign hires are not additions to the work force, but replacements. The corporations force their American employees to train the foreigners, and then the American employees are discharged. Obviously, if skilled employees were in short supply, they would not be laid off. Moreover, if the skills were in short supply, salaries would be bid up, not down, and the 36% of those who graduated in 2011 with a doctorate degree in engineering would not have been left unemployed. The National Science Foundation’s report, “Doctorate Recipients From U.S. Universities,” says that only 64% of the Ph.D. engineering graduates found a pay check.

As I have reported on numerous occasions for many years, neither the payroll jobs statistics nor the Bureau of Labor Statistics’ job projections show job opportunities for university graduates. But this doesn’t stop Congress from helping US corporations get rid of their American employees in exchange for campaign donations.

There was a time not that long ago when US corporations accepted that they had obligations to their employees, customers, suppliers, the communities in which they were located, and to their shareholders. Today they only acknowledge obligations to shareholders. Everyone else has been thrown to the wolves in order to maximize profits and, thereby, shareholders’ capital gains and executive bonuses.

By focusing on the bottom line at all costs, corporations are destroying the US consumer market. Offshoring jobs reduces labor costs and raises profits, but it also reduces domestic consumer income, thus reducing the domestic market for the corporation’s products. For awhile the reduction in consumer income can be filled by the expansion of consumer debt, but when consumers reach their debt limit sales cannot continue to rise. The consequence of jobs offshoring is the ruination of the domestic consumer market.

Today the stock market is high not from profits from expanding sales revenues, but from labor cost savings.

US economic policy has been focused away from the real problems and onto a consequence of those problems–the large US budget deficit. As no interest group wants to be gored, Congress has been unable to deal with the trillion dollar plus annual budget deficit, the continuation of which raises the specter of dollar collapse and inflation.

John Maynard Keynes made it clear long ago, as has Greece today, that trying to reduce the ratio of debt to GDP by austerity measures doesn’t work.

Among the countries in the world the US is in a unique position. It not only has its own central bank to provide the money necessary to finance the government’s deficit, but also the money that is provided, the US dollar, is the world’s reserve currency used to settle international accounts among all nations and, thus, always in demand. The dollar thus serves as the world’s transaction currency and also as a store of value for countries with trade surpluses who invest their surpluses in US Treasury bonds and other dollar-denominated assets.

Without the support that the reserve currency status gives to the dollar’s exchange value (its price in foreign currencies), the enormous expansion in the quantity of dollars produced by the Fed’s years of quantitative easing would have resulted in a drop in the dollar’s exchange value, a rise in interest rates, and a rise in inflation. Since my time in government, the US has become an import-dependent economy, and import-dependent economies are subject to domestic inflation when the currency loses exchange value.

To sum up, the corporations’ focus on the bottom line has disconnected US incomes from the production of the goods and services that the American people consume, thus weakening and ultimately destroying the domestic consumer market. The Fed’s focus on saving banks, which mindless deregulation allowed to become “too big to fail,” has created a bond market bubble of negative real interest rates and a dollar bubble in which the dollar’s exchange rate has not declined in keeping with the large increase in its supply. Both the corporations and the Fed have created a stock market bubble based on profits obtained from labor arbitrage (the substitution of cheaper foreign labor for US labor) and from banks speculating with the money that the Fed is providing to them.

This situation is untenable. Sooner or later something will pop these bubbles, and the consequences will be horrendous.

Dr. Roberts was Assistant Secretary of the US Treasury for Economic Policy in the Reagan Administration. He was associate editor and columnist with the Wall Street Journal, columnist for Business Week and the Scripps Howard News Service. He has had numerous university appointments. His latest book, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West is available here: http://www.amazon.com/Failure-Capitalism-Economic-Dissolution-ebook/dp/B00BLPJNWE/

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Did you know that the latest big business is killer robots? Not only drones that can be insect size and lethal, but also Terminator-type machines that will have the power to decide who lives and dies. Of course, the way has been paved for killer robots and their inevitable mistakes, as the US military no longer differentiates between actual combatants and collateral damage.

The US government no longer pays any attention to the Geneva Conventions and the
international laws once supported by the United States until “the war on terror” took over the government. The Bush and Obama regimes have eliminated morality from the picture. Any combatant who surrenders or is captured is likely to be illegally tortured, as all available evidence shows. Once killer robots are unleashed, under the rights of surrender, how does one surrender to a killer robot? If a robot commits war crimes, how is the robot held accountable?

These are serious issues. Professor Noel Sharkey, a robotics and artificial intelligence expert at Sheffield University, says that “in America they are already training more drone pilots than real aircraft pilots.”

The majority of Americans have no idea either of the collapse of morality that the Bush and Obama regimes have achieved or of the dark abyss that awaits them. Most Americans–even unfortunately the ACLU–think that the moral issues deserving of political and legal attention are abortion rights and gay rights. While the country lines up on one side or the other of these two subsidiary issues, the Bill of Rights is struck down.

Most Americans are not even aware of the future that is being decided for them. They can’t see anything as more important than sports contests or NASCAR races, or how to arrange financing for the purchase of whatever it is that they regard as the need of the moment.

The vast bulk of the American population is completely capable of losing every civil right without ever knowing that they have lost the rights.

It is really extraordinary that it only took Bush and Obama ten years to destroy the US Constitution, the basis for our civil existence.

Will Congress give the next president the title of Augustus?

Read Tracy McVeigh’s account of killer robots and the effort to stop them in The Guardian.

http://www.guardian.co.uk/technology/2013/feb/23/stop-killer-robots

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Democracy is polluted with special interests and corrupt politicians.

Accountability is polluted with executive branch exemptions from law and the Constitution and with special legal privileges for corporations, such as the Supreme Court given right to corporations to purchase American elections.

The Constitution is polluted with corrupt legal interpretations from the Bush and Obama regimes that have turned constitutional prohibitions into executive branch rights, transforming law from a shield of the people into a weapon in the hands of government.

Waters are polluted with toxic waste spills, oil spills, chemical fertilizer run-off with resulting red tides and dead zones, acid discharges from mining with resulting destructive algae such as prymnesium parvum, from toxic chemicals used in fracking and with methane that fracking releases into wells and aquifers, resulting in warnings to homeowners near to fracking operations to open their windows when showering.

The soil’s fertility is damaged, and crops require large quantities of chemical fertilizers. The soil is polluted with an endless array of toxic substances and now with glyphosate, the main element in Monsanto’s Roundup herbicide with which GMO crops are sprayed. Glyphosate now shows up in wells, streams and in rain.

Air is polluted with a variety of substances, and there are many large cities in which there are days when the young, the elderly, and those suffering with asthma are warned to remain indoors.

All of these costs are costs imposed on society and ordinary people by corporations that banked profits by not having to take the costs into account. This is the way in which unregulated capitalism works.

Our food itself is polluted with antibiotics, growth hormones, pesticides, and glyphosate.

Glyphosate might be the most dangerous development to date. Some scientists believe that glyphosate has the potential to wipe out our main grain crops and now that Obama’s Secretary of Agriculture, Thomas Vilsack, has approved genetically modified Roundup Ready alfalfa, maintaining sustainable animal herds for milk and meat could become impossible.

Alfalfa is the main forage crop for dairy and beef herds. Genetically modified alfalfa could be unsafe for animal feed, and animal products such as milk and meat could become unsafe for human consumption.

On January 17, 2011, Dr. Don Huber outlined the dangers of approving Roundup Ready alfalfa in a letter to Secretary of Agriculture Vilsack. Huber requested that approval be delayed until independent research could evaluate the risks. Vilsack ignored Huber’s letter and ten days later deregulated Roundup Ready alfalfa on January 27, thus accommodating Monsanto’s desire for monopoly profits that come from the company’s drive to control the seed supply of US and world agriculture by approving Roundup Ready alfalfa.

Who is Don Huber, and why is his letter important?

Huber is professor emeritus at Purdue University. He has been a plant pathologist and soil microbiologist for a half century. He has an international reputation as a leading authority. In the US military, he evaluated natural and manmade biological threats, such as germ warfare and disease outbreaks and retired with the rank of Colonel. For the USDA he coordinates the Emergent Diseases and Pathogens Committee. In other words, he is high up in his scientific profession.

You can read online what Huber told the Secretary of Agriculture. Briefly, the outcome of many years of Roundup Ready GMO corn and soybeans has been a decline in nutritional value, the outbreak of new plant diseases resulting in widespread crop failures, and severe reproductive problems in livestock, with some herds having a spontaneous abortion rate that is too high to maintain a profitable business.

Glyphosate is a powerful biocide. It harms beneficial soil organisms, altering the natural balance in the soil and reducing the disease resistance of crops, thus unleashing diseases that devastate corn, soybean, and wheat crops, and giving rise to a new pathogen associated with premature animal aging and infertility. These developments, Huber told the Agriculture Secretary, “are threatening the economic viability of both crop and animal producers.” The evidence seems to be real that genetically modified crops have lost their genetic resistance to diseases that never previously were threats.

There is evidence that the new pathogen is related to a rise in human infertility and is
likely having adverse effects on human health of which we are still uninformed. Like fluoride, glyphosate might enter our diet in a variety of ways. For example, the label on
a bottle of Vitamin D says, “Other ingredients: soybean oil, corn oil.”

Monsanto disputes Huber’s claims and got support for its position from the agricultural extension services of Iowa State and Ohio State universities. However, the question is whether these are independently funded services or corporate supported, and there is always the element of professional rivalry, especially for funding, which comes mainly from agribusiness.

The Purdue University extension service was more circumspect. On the one hand it admits that there is evidence that supports Huber’s claims: “The claim that herbicides, such as glyphosate, can make plants more susceptible to disease is not entirely without merit. Research has indicated that plants sprayed with glyphosate or other herbicides are more susceptible to many biological and physiological disorders (Babiker et al., 2011; Descalzo et al., 1996; Johal and Rahe, 1984; Larson et al., 2006; Means and Kremer, 2007; Sanogo et al., 2000; Smiley et al., 1992). . . . Although some research indicates there is an increase in disease severity on plants in the presence of glyphosate, it does NOT necessarily mean that there is an impact on yield.”

On the other hand, the Purdue extension service maintains its recommendation for “judicious glyphosate use for weed control.” However, one of Huber’s points is that weeds are developing Roundup resistance. Use has gone beyond the “judicious” level and as glyphosate builds up in soil, its adverse effects increase.

A submission to the Environmental Protection Agency by 26 university entomologists describes the constraints that agribusiness has put on the ability of independent scientists to conduct objective research. The submission, in which the scientists are afraid to reveal their names because of the threat of funding cutoffs, is included as an item in one of the bibliographical references below. Here is the statement:

“The names of the scientists have been withheld from the public docket because virtually all of us require cooperation from industry at some level to conduct our research. Statement: Technology/stewardship agreements required for the purchase of genetically modified seed explicitly prohibit research. These agreements inhibit public scientists from pursuing their mandated role on behalf of the public good unless the research is approved by industry. As a result of restricted access, no truly independent research can be legally conducted on many critical questions regarding the technology, its performance, its management implications, IRM, and its interactions with insect biology. Consequently, data flowing to an EPA Scientific Advisory Panel from the public sector is unduly limited.”

Monsanto is not only sufficiently powerful to prevent any research other than that which it purchases with its funding, but also Monsanto succeeded last year in blocking with money and propaganda the GMO labeling law in California. I would tell you to be careful what you eat as it can make you ill and infertile, but you can’t even find out what you are eating.

You live in America, which has “freedom and democracy” and “accountable” government and ”accountable” corporations. You don’t need to worry. The government and responsible corporations are taking good care of you. Especially Obama, Vilsack, and Monsanto.

Short bibliography:

http://fhr.branditimage.com/hot-topic-letter-to-us-secretary-of-agriculture/

http://www.fooddemocracynow.org/blog/2011/apr/6/don-hubers-cover-letter-euuk-commissions/

http://vimeo.com/22997532

http://www.greenpasture.org/utility/showArticle/?objectID=7169

http://ourecovillage.org/2011/04/11/dr-hubers-cover-letter-to-secretary-vilsack/

http://www.gmwatch.org/latest-listing/51-2012/14164-glyphosate-and-gmos-impact-on-crops-soils-animals-and-man-dr-don-huber

http://www.non-gmoreport.com/articles/may10/consequenceso_widespread_glyphosate_use.php

http://www.monsanto.com/newsviews/Pages/huber-pathogen-roundup-ready-crops.aspx

http://www.foodandwaterwatch.org/blogs/time-for-usda-to-wake-up-to-weed-resistance-and-ban-agent-orange-corn-once-and-for-all/

http://southeastfarmpress.com/resistant-pigweed-plagues-central-georgia-cotton

http://www.usgs.gov/newsroom/article.asp?ID=2909

http://www.counterpunch.org/2013/02/27/monsanto-university/

http://www.globalresearch.ca/giant-food-corporations-work-hand-in-glove-with-corrupt-government-agencies-to-dish-up-cheap-unhealthy-food/5324525

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Would there ever have been a Soviet Union if the Czar had stayed out of World War I?

Would there have been a World War II if British, French, and American politicians had listened to John Maynard Keynes’ warning that the Treaty of Versailles would result in a second world war? Germany had been promised a different outcome–no reparations and no territorial loss–in exchange for an armistice. As Keynes realized, the betrayal of the peace led to another great war.

There are a couple of what ifs that I have been waiting for historians to explore. As no historians have risen to the challenge, I will have a go. Keep in mind that a what if outcome is not necessarily a better outcome. It might be a worse outcome. As what if did not happen and there is no what if history, there is no way of making a judgment.

Suppose Churchill had not succeeded in pressuring Chamberlain to interfere with Hitler’s negotiations with the Polish colonels by issuing a British guarantee to Poland in the event of German aggression. Would World War II have resulted or would it have been a different war?

The British guarantee emboldened the colonels and frustrated Hitler’s attempt to restore
a Germany dismantled by the Versailles Treaty. The result was Hitler’s secret pact with Stalin to divide up Poland, technically known as the Molotov-Ribbentrop Pact.

Having given the guarantee, Britain was honor-bound to declare war on Germany (fortunately not also on the Soviet Union), which pulled in France because of the British-French alliance against Germany.

Without Britain’s guarantee, the German (September 1, 1939) and Soviet (September 17, 1939) invasions of Poland would have been prevented by the Polish colonels’ acquiescence to Hitler’s demands and would not have resulted in Britain and France starting World War II by declaring war on Germany, resulting in the fall of France, the British driven off the continent, and Roosevelt’s determination to involve the US in a foreign war unrelated in any significant way to Americans’ interests.

Historians write that Hitler’s ambitions were in the East, not the West. Without the British and French declaration of war, the war might have been contained, with the two totalitarian powers fighting it out.

Alternatively, Hitler and Stalin might have continued their cooperation and together seized the oil rich Middle East. The British, French, and Americans would have been a poor match for the German and Soviet militaries. General Patton, the best American commander, thought he could take on the Red Army that had crushed the Wehrmacht, but his hubris did not worry Red Army commanders, who defeated the bulk of the German Army, which was deployed on the Eastern Front, while the Americans, aided by German motorized units running out of fuel, struggled to contain a small part of German forces in the Battle of the Bulge. Today we would be buying our oil from a German/Soviet consortium.

This outcome implies a different history for the Middle East, and so does another what if. What if the 9/11 Commission consisted of experts instead of politicians with their fingers in the wind, and what if the commissioners had too much integrity to write a report dictated by the executive branch? The unlikely and untenable failure of every institution of the American national security state would have been investigated, and the collapse of WTC 7 at free fall speed would have had to have been acknowledged in the report and explained. A totally different story would have emerged, a story unlikely to have locked Americans into permanent war in an expanding number of countries and into a domestic police state.

Americans might still be a free people. And American liberty might still be a beacon to the world.

On the other hand, a finding of government complicity in 9/11 could have threatened powerful interests and resulted in violent conflict and martial law.

What ifs are provocative, and that is what makes them fun. Thinking is America’s national disability. I’m all for anything that provokes Americans to think.

The post What If? — Paul Craig Roberts appeared first on PaulCraigRoberts.org.

In this video of a Banking Committee hearing of the US Senate, Senator Warren makes
the point that not a single financial regulatory agency has prosecuted a single financial crook.

How can they? The regulators are owned by the crooks. Watch the video and become accustomed to Amerikan reality.

http://news.yahoo.com/blogs/ticket/elizabeth-warren-grills-banking-regulators-first-hearing-161535327–politics.html

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During the campaign for the Republican presidential nomination, I suggested that by softening a couple of hardened libertarian positions, Ron Paul could win the nomination. My advice was not taken, but even had it been, this video shows that no matter how many votes Ron Paul received, the Republican Party had no intention of giving him the nomination. The presstitute media would not even acknowledge that he was a candidate.

The post How The Republican Party and the Presstitute Media Made Ron Paul Invisible appeared first on PaulCraigRoberts.org.

Forty Senate Republicans made it clear that not only do they refuse to put their service to America ahead of their service to Israel, but also that they will not even put their service to America on a par with their service to Israel. To every American’s shame, the Republicans demonstrated for all the world to see that they are wholly owned subsidiaries of the Israel Lobby. (The Israel Lobby is not their only master. They are also owned by other powerful interest groups, such as Wall Street and the Military/Security Complex.)

The most embarrassing behavior of all came from the craven Lindsay Graham, who, while in the act of demonstrating his complete subservience by crawling on his belly before the Israel Lobby, dared Hagel to name one single person in the US Congress who is afraid of the Israel Lobby.

If I had been Hagel, I would have written off the nomination and answered: “You, Senator Graham, and your 40 craven colleagues.”

Indeed, Hagel could have answered: The entire US Congress, including Rand Paul who pretends to be different but isn’t.

The real question is: Who in the Congress is not afraid of the Israel Lobby?

The hatchet job on Hagel is driven by fear of the Israel Lobby.

Perhaps the worst affront Israel’s American representatives ever inflicted on the US military was the coverup of the Israeli air and torpedo boat attack on the USS Liberty in 1967. The Israeli attack failed to sink the Liberty but killed and wounded most of the crew. The survivors were ordered to silence, and it was 12 years before one of them spoke up and revealed what had happened (James Ennes, Assault On The Liberty). Not even Admiral Thomas Moorer, Chief of Naval Operations and Chairman of the Joint Chiefs of Staff could get Washington to own up to the facts.

The facts are now well known, but as far as Washington is concerned they are dead letter facts. The entire event has been moved to some parallel universe.

Why are the Senate Republicans out to destroy Hagel for Israel?

The answer is, first, back when Hagel was a US Senator he refused to be intimidated by the Israel Lobby and declared, “I am a US Senator, not an Israeli Senator.” In other words, Hagel did the impermissible. He said he represented US interests, not Israel’s interests. Hagel’s position implies that the interests of the two countries are not identical, which is a heresy.

The second part of the answer is that Hagel doesn’t think that it is a good idea for the US to start a war with Iran or for the US to permit Israel to do so.

But a US war with Iran is what the Israeli government and its neoconservative agents have been trying to impose on the Obama regime. Israel wants to get rid of Iran, because Iran supports Hizbollah in Southern Lebanon, thus preventing Israel from annexing that territory and its water resources, and because Iran supports Hamas, the only Palestinian organization that tries to oppose Israel’s total theft of Palestine, although Iran has never supplied Hamas with effective weapons.

The two organizations that oppose Israel’s territorial expansion, Hizbollah and Hamas, represent large numbers of Arab peoples. Nevertheless, both are declared, on Israel’s orders, to be “terrorist organizations” by the servile US Department of State, which in all reality should be called the Israeli Department of State, as it never puts US interests before Israel’s.

In other words, Hagel did not grovel. He did not say how much he loved Israel and how it would be his great honor to sacrifice all other interests to Israel’s, how he has waited his entire life for the chance to serve Israel as the US Secretary of Defense.

Hagel is not an opponent of Israel. He merely said, “First, I am an American.” His lack of craven subservience is unacceptable to the Israel Lobby, which has branded him an “anti-semite.”

Lindsay Graham, in contrast, has what it takes to be Israel’s perfect choice for US Secretary of Defense.

Graham will go out of his way to please the Israel Lobby. He will pull out all stops and behave with maximum servility to a foreign power in his effort to embarrass the President of the United States and his nominee, a war veteran and former US Senator who simply thinks that the US Congress and the executive branch should put American interests first.

Senate Majority Leader Reid has used Senate rules to keep Hagel’s nomination alive.
If Lindsay Graham succeeds in doing the Israel Lobby’s dirty work, he will have handed a defeat of the US President to the Israeli Prime Minister, who has demeaned the President of the United States for not doing Israel’s bidding and attacking Iran.

Americans are a colonized people. Their government represents the colonizing powers: Wall Street, the Israel Lobby, the Military/Security Complex, Agribusiness, Pharmaceuticals, Energy, Mining, and Timber interests.

Two elected representatives who tried to represent the American people–Ron Paul and Dennis Kucinich–found representative government to be an inhospitable place for those few who attempt to represent the interests of the American people.

Like Ron Paul, Dennis Kucinich, and Gerald Celente, I stand with our Founding Fathers who opposed America’s entanglement in foreign wars. In an effort to prevent entanglements, the Founding Fathers gave the power to declare war to Congress. Over the years Congress has gradually ceded this power to the President to the extent that it no longer exists as a power of Congress. The President can start a war anywhere at any time simply by declaring that the war is not a war but a “time-limited, scope-limited, kinetic military action.” Or he can use some other nonsensical collection of words.

In the first few years of the 21st century, the executive branch has invaded two countries, violated the sovereignty of five others with military operations, and has established military bases in Africa in order to counteract China’s economic penetration of the continent and to secure the resources for US and European corporations, thus enlarging the prospects for future wars. If the Republicans succeed in blocking Hagel’s confirmation, the prospect of war with Iran will be boosted.

By abdicating its war power, Congress lost its control of the purse. As the executive branch withholds more and more information from Congressional oversight committees, Congress is becoming increasingly powerless. As Washington’s war debts mount, Washington’s attack on the social safety net will become more intense. Governmental institutions that provide services to Americans will wither as more tax revenues are directed to the coffers of special interests and foreign entanglements.

The tenuous connection between the US government and the interests of citizens is on its way to being severed entirely.

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