All guns, not much butter

When thinking about the USA it is easy to fall for the idea that it is the wealthiest country in the world and that it would be difficult for people to hunger there. Reality is different. As the article published by Zerohedge illustrates, 21% of the USA population can’t afford food. In contrast, the USA accounts for 42% of the world’s military spending. Guns, but not much butter.military_spending_big.png

 

 

 

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Brave New 1984

Zerohedge publishes a review of the 2 most well known dystopian books of the twentieth century, Brave New World from Aldous Huxley, published in 1932 and 1984 from George Orwell, published in 1949. The article by Zerohedge extensively quotes 2 previous articles, “Orwell, Huxley and the Emerging Totalitarianism” by Emmet Scott and  “2011: A Brave New Dystopia” by Chris Hedges. Chris Hedges appears most insightful when he states that “It turns out that Orwell and Huxley were both right. Huxley saw the first stage of our enslavement. Orwell saw the second.”

Some excerpts:

“The two greatest visions of a future dystopia were George Orwell’s “1984” and Aldous Huxley’s “Brave New World.” The debate, between those who watched our descent towards corporate totalitarianism, was who was right. Would we be, as Orwell wrote, dominated by a repressive surveillance and security state that used crude and violent forms of control? Or would we be, as Huxley envisioned, entranced by entertainment and spectacle, captivated by technology and seduced by profligate consumption to embrace our own oppression? It turns out Orwell and Huxley were both right. Huxley saw the first stage of our enslavement. Orwell saw the second.”

“We have been gradually disempowered by a corporate state that, as Huxley foresaw, seduced and manipulated us through sensual gratification, cheap mass-produced goods, boundless credit, political theater and amusement. While we were entertained, the regulations that once kept predatory corporate power in check were dismantled, the laws that once protected us were rewritten and we were impoverished. Now that credit is drying up, good jobs for the working class are gone forever and mass-produced goods are unaffordable, we find ourselves transported from “Brave New World” to “1984.” The state, crippled by massive deficits, endless war and corporate malfeasance, is sliding toward bankruptcy. It is time for Big Brother to take over from Huxley’s feelies, the orgy-porgy and the centrifugal bumble-puppy. We are moving from a society where we are skillfully manipulated by lies and illusions to one where we are overtly controlled. “

“The corporate state does not find its expression in a demagogue or charismatic leader. It is defined by the anonymity and facelessness of the corporation. Corporations, who hire attractive spokespeople like Barack Obama, control the uses of science, technology, education and mass communication. They control the messages in movies and television. And, as in “Brave New World,” they use these tools of communication to bolster tyranny. Our systems of mass communication, as Wolin writes, “block out, eliminate whatever might introduce qualification, ambiguity, or dialogue, anything that might weaken or complicate the holistic force of their creation, to its total impression.””

“The façade is crumbling. And as more and more people realize that they have been used and robbed, we will move swiftly from Huxley’s “Brave New World” to Orwell’s “1984.” The public, at some point, will have to face some very unpleasant truths. The good-paying jobs are not coming back. The largest deficits in human history mean that we are trapped in a debt peonage system that will be used by the corporate state to eradicate the last vestiges of social protection for citizens, including Social Security. The state has devolved from a capitalist democracy to neo-feudalism. And when these truths become apparent, anger will replace the corporate-imposed cheerful conformity. The bleakness of our post-industrial pockets, where some 40 million Americans live in a state of poverty and tens of millions in a category called “near poverty,” coupled with the lack of credit to save families from foreclosures, bank repossessions and bankruptcy from medical bills, means that inverted totalitarianism will no longer work.”

“The noose is tightening. The era of amusement is being replaced by the era of repression. “

Arrogance, Hubris and Evil

The leaked phone conversation today between the EU foreign affairs chief Catherine Ashton and the Estonian foreign affairs minister Urmas Paet, where the estonian minister stated that “There is now stronger and stronger understanding that behind the snipers, it was not Yanukovych, but it was somebody from the new coalition,” gives credence to the article from Dr. Paul Craig Roberts about the crisis in the Ukraine that we excerpt below.

Dr. Paul Craig Roberts is an American economist. He served as an Assistant Secretary of the Treasury in the Reagan Administration and was noted as a co-founder of Reaganomics. He is a former editor and columnist for the Wall Street Journal, Business Week, and Scripps Howard News Service. He has testified before congressional committees on 30 occasions on issues of economic policy.

He has recently published in his blog a series of articles (this, this and this) where he defends the position that what stands behind the “revolution” in the Ukraine is the purpose of the USA and the “West” of controlling that country, with the ultimate goal of weakening Russia on the way to targeting China. As he says, “Only three countries stand in the way of Washington’s hegemony over the world, Russia, China, and Iran.”

“Neocons and the Ukraine Coup” by Robert Parry and “US a full partner in Ukraine debacle” by Stephen Kinzer are also interesting articles defending the same thesis, but here we’ll just excerpt some paragraphs from Dr. Paul Craig Roberts’  “Washington’s Arrogance, Hubris, and Evil Have Set the Stage for War”:

The excerpts:

“As Aleksandr Solzhenitsyn pointed out, it was folly for the Communist Party of the Soviet Union to transfer historic provinces of Russia into Ukraine. At the time it seemed to the Soviet leadership like a good thing to do. Ukraine was part of the Soviet Union and had been ruled by Russia since the 18th century. Adding Russian territory to Ukraine served to water down the nazi elements in western Ukraine that had fought for Hitler during World War 2. Perhaps another factor in the enlargement of Ukraine was the fact of Khrushchev’s Ukrainian heritage.”

“Regardless, it did not matter until the Soviet Union and then the former Russian empire itself fell apart. Under Washington’s pressure, Ukraine became a separate country retaining the Russian provinces, but Russia retained its Black Sea naval base in Crimea.”

“Washington tried, but failed, to take Ukraine in 2004 with the Washington-financed “Orange Revolution.” According to Assistant Secretary of State Victoria Nuland, since this failure Washington has “invested” $5 billion in Ukraine in order to foment agitation for EU membership for Ukraine. EU membership would open Ukraine to looting by Western bankers and corporations, but Washington’s main goal is to establish US missile bases on Russia’s border with Ukraine and to deprive Russia of its Black Sea naval base and military industries in eastern Ukraine. EU membership for Ukraine means NATO membership.”

Washington wants missile bases in Ukraine in order to degrade Russia’s nuclear deterrent, thus reducing Russia’s ability to resist US hegemony. Only three countries stand in the way of Washington’s hegemony over the world, Russia, China, and Iran.”

“Russia has been slow to react to the many years of Washington’s provocations, hoping for some sign of good sense and good will to emerge in the West. Instead, Russia has experienced rising demonization from Washington and European capitals and foaming at the mouth vicious denunciations by the West’s media whores. The bulk of the American and European populations are being brainwashed to see the problem that Washington’s meddling has caused in Ukraine to be Russia’s fault.”

“Note the absurdity of the situation. Kiev has been taken over by ultra-nationalist neo-nazis. A band of ultra-nationalist thugs is the last thing the European Union wants or needs as a member state.”

Everyone needs to understand that Washington is lying about Ukraine just as Washington lied about Saddam Hussein and weapons of mass destruction in Iraq, just as Washington lied about Iranian nukes, just as Washington lied about Syrian president Assad using chemical weapons, just as Washington lied about Afghanistan, Libya, NSA spying, torture. What hasn’t Washington lied about?

“Washington is comprised of three elements: Arrogance, Hubris, and Evil. There is nothing else there.”

The American Deep State

The expression “Deep State” originated in Turkey, and it designates “a group of influential anti-democratic coalitions within the Turkish political system, composed of high-level elements within the intelligence services (domestic and foreign), Turkish military, security, judiciary, and mafia”, that compose a state within the state. The turkish Deep State appeared with the Kemal Ataturk revolution of 1923.

“Deep State” is an increasingly popular expression used to describe the powers behind the state, the set of forces that exercise power beyond and above a country’s government and constitution, in this case the American Constitution.

In this interview with Bill Moyers, Mike Lofgren, a congressional staff member for 28 years, talks about what he calls Washington’s “Deep State,” in which elected and unelected figures collude to protect and serve powerful vested interests. “It is how we had deregulation, financialization of the economy, the Wall Street bust, the erosion or our civil liberties and perpetual war,”

As one of the commentaries on the interview says: “Mike Lofgren manages to say what conspiracy theorists have been saying for years…without sounding like a conspiracy theorist.”

Lofgren also tackles the same issue in the essay, Anatomy of the Deep State. After describing in detail its components and operational methods, he ends his article with an optimist note, as if there was still time (and means) to dismantle it. Unfortunately, we do not share his optimism. We fear that the Deep State and its owners are here to stay. Nevertheless, having been a partial insider, Mike Lofgren makes a good service by offering this apt description of the american Deep State, the true operational power of America.

Some excerpts:

“How did I come to write an analysis of the Deep State, and why am I equipped to write it? As a congressional staff member for 28 years specializing in national security and possessing a top secret security clearance, I was at least on the fringes of the world I am describing, if neither totally in it by virtue of full membership nor of it by psychological disposition. But, like virtually every employed person, I became, to some extent, assimilated into the culture of the institution I worked for, and only by slow degrees, starting before the invasion of Iraq, did I begin fundamentally to question the reasons of state that motivate the people who are, to quote George W. Bush, “the deciders.””

“Cultural assimilation is partly a matter of what psychologist Irving L. Janis called “groupthink,” the chameleon-like ability of people to adopt the views of their superiors and peers….As Upton Sinclair said, “It is difficult to get a man to understand something when his salary depends upon his not understanding it.””

“The Deep State does not consist of the entire government. It is a hybrid of national security and law enforcement agencies: the Department of Defense, the Department of State, the Department of Homeland Security, the Central Intelligence Agency and the Justice Department. I also include the Department of the Treasury because of its jurisdiction over financial flows, its enforcement of international sanctions and its organic symbiosis with Wall Street. All these agencies are coordinated by the Executive Office of the President via the National Security Council. Certain key areas of the judiciary belong to the Deep State, such as the Foreign Intelligence Surveillance Court, whose actions are mysterious even to most members of Congress. Also included are a handful of vital federal trial courts, such as the Eastern District of Virginia and the Southern District of Manhattan, where sensitive proceedings in national security cases are conducted. The final government component (and possibly last in precedence among the formal branches of government established by the Constitution) is a kind of rump Congress consisting of the congressional leadership and some (but not all) of the members of the defense and intelligence committees. The rest of Congress, normally so fractious and partisan, is mostly only intermittently aware of the Deep State and when required usually submits to a few well-chosen words from the State’s emissaries.”

“Washington is the most important node of the Deep State that has taken over America, but it is not the only one. Invisible threads of money and ambition connect the town to other nodes. One is Wall Street, which supplies the cash that keeps the political machine quiescent and operating as a diversionary marionette theater. Should the politicians forget their lines and threaten the status quo, Wall Street floods the town with cash and lawyers to help the hired hands remember their own best interests. The executives of the financial giants even have de facto criminal immunity. On March 6, 2013, testifying before the Senate Judiciary Committee, Attorney General Eric Holder stated the following: “I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy.” This, from the chief law enforcement officer of a justice system that has practically abolished the constitutional right to trial for poorer defendants charged with certain crimes. It is not too much to say that Wall Street may be the ultimate owner of the Deep State and its strategies, if for no other reason than that it has the money to reward government operatives with a second career that is lucrative beyond the dreams of avarice — certainly beyond the dreams of a salaried government employee. [3]

“…avatars of the Deep State — the White House advisers who urged Obama not to impose compensation limits on Wall Street CEOs, the contractor-connected think tank experts who besought us to “stay the course” in Iraq, the economic gurus who perpetually demonstrate that globalization and deregulation are a blessing that makes us all better off in the long run — are careful to pretend that they have no ideology. Their preferred pose is that of the politically neutral technocrat offering well considered advice based on profound expertise. That is nonsense. They are deeply dyed in the hue of the official ideology of the governing class, an ideology that is neither specifically Democrat nor Republican. Domestically, whatever they might privately believe about essentially diversionary social issues such as abortion or gay marriage, they almost invariably believe in the “Washington Consensus”: financialization, outsourcing, privatization, deregulation and the commodifying of labor. Internationally, they espouse 21st-century “American Exceptionalism”: the right and duty of the United States to meddle in every region of the world with coercive diplomacy and boots on the ground and to ignore painfully won international norms of civilized behavior. To paraphrase what Sir John Harrington said more than 400 years ago about treason, now that the ideology of the Deep State has prospered, none dare call it ideology.That is why describing torture with the word “torture” on broadcast television is treated less as political heresy than as an inexcusable lapse of Washington etiquette: Like smoking a cigarette on camera, these days it is simply “not done.””

Silicon Valley is a vital node of the Deep State as well. Unlike military and intelligence contractors, Silicon Valley overwhelmingly sells to the private market, but its business is so important to the government that a strange relationship has emerged. While the government could simply dragoon the high technology companies to do the NSA’s bidding, it would prefer cooperation with so important an engine of the nation’s economy, perhaps with an impliedquid pro quo.”

“That the secret and unaccountable Deep State floats freely above the gridlock between both ends of Pennsylvania Avenue is the paradox of American government in the 21st century: drone strikes, data mining, secret prisons and Panopticon-like control on the one hand; and on the other, the ordinary, visible parliamentary institutions of self-government declining to the status of a banana republic amid the gradual collapse of public infrastructure.”

“The Deep State is the big story of our time. It is the red thread that runs through the war on terrorism, the financialization and deindustrialization of the American economy, the rise of a plutocratic social structure and political dysfunction. Washington is the headquarters of the Deep State, and its time in the sun as a rival to Rome, Constantinople or London may be term-limited by its overweening sense of self-importance and its habit, as Winwood Reade said of Rome, to “live upon its principal till ruin stared it in the face.” “Living upon its principal,” in this case, means that the Deep State has been extracting value from the American people in vampire-like fashion.”

Where Have All The Flowers Gone?

Pete Seeger one of the fathers of american folk music, loved and revered by so many, died yesterday. In 1955 he wrote and composed Where Have All the Flowers Gone? The song has become a classic pacifist hymn. We publish 2 versions, one by Pete Seeger and one by Marlene Dietrich.

Seeger recalled about the song:

“I had been reading a long novel – And Quiet Flows the Don – about the Don River in Russia and the Cossacks who lived along it in the 19th century. It describes the Cossack soldiers galloping off to join the Tsar’s army, singing as they go. Three lines from a song are quoted in the book: ‘Where are the flowers?/The girls plucked them/Where are the girls?/They’re all married/Where are the men?/They’re all in the army.’ I never got around to looking up the song, but I wrote down those three lines. Later, in an airplane, I was dozing, and it occurred to me that the line “long time passing” – which I had also written in a notebook – would sing well. Then I thought, ‘When will we ever learn’. Suddenly, within 20 minutes, I had a song.”

Where have all the flowers gone, long time passing?
Where have all the flowers gone, long time ago?
Where have all the flowers gone?
Young girls have picked them everyone.
Oh, when will they ever learn?
Oh, when will they ever learn?

Where have all the young girls gone, long time passing?
Where have all the young girls gone, long time ago?
Where have all the young girls gone?
Gone for husbands everyone.
Oh, when will they ever learn?
Oh, when will they ever learn?

Where have all the husbands gone, long time passing?
Where have all the husbands gone, long time ago?
Where have all the husbands gone?
Gone for soldiers everyone
Oh, when will they ever learn?
Oh, when will they ever learn?

Where have all the soldiers gone, long time passing?
Where have all the soldiers gone, long time ago?
Where have all the soldiers gone?
Gone to graveyards, everyone.
Oh, when will they ever learn?
Oh, when will they ever learn?

Where have all the graveyards gone, long time passing?
Where have all the graveyards gone, long time ago?
Where have all the graveyards gone?
Gone to flowers, everyone.
Oh, when will they ever learn?
Oh, when will they ever learn?

Where have all the flowers gone, long time passing?
Where have all the flowers gone, long time ago?
Where have all the flowers gone?
Young girls have picked them everyone.
Oh, when will they ever learn?
Oh, when will they ever learn?

Reverse Robin Hood explained

In this article published by Zerohedge we can find a cogent explanation of the present process of wealth redistribution from poor to rich, a phenomenon felt everywhere. Whether this process is an intended one, a sort of conspiracy, or just “collateral damage” of unsound monetary and economic policies, is for the reader to decide. This is, in words of Stanley Druckenmiller, one of the most successful hedge fund managers, “the biggest redistribution of wealth from the middle class and poor to the rich ever”. Don’t miss the charts, they are self explanatory. As a summary, the aim of achieving this wealth redistribution is achieved thru several mechanisms:

A – “the rich hold assets, the poor have debt”

B – QE has resulted in a loss of purchasing power for the US dollar. Faced with this problem, consumers in the middle class are taking on more non-housing debt in order to maintain the same standard of living. In addition, the US government – which continues to run a deficit year after year – continues to accumulate debt. Due to these facts, total debt outstanding – aka credit market instruments for all sectors – is at all time highs. More debt means more interest payments and lower savings rates. These trends do not bode well for the middle class consumer.

C – On the other hand, QE has been great for the rich. QE has inflated the prices of assets such as property, bonds, stocks, and non-home real estate.

D – Taxes as a percentage of real disposable income have more than doubled since 1980. This trend has not been kind to the bottom 90%.

E – Median household income has been in a downtrend since the late 90s.

F – The entitlement problem is only going to get worse as more baby boomers leave the work force. Future generations will have to pay for the debt that the old and rich continue to take on.

In conclusion, QE, taxes, income disparity, and entitlements are contributing to “the biggest redistribution of wealth from the middle class and the poor to the rich ever” If things continue the way they are going, then millennials and future generations will pay the price:

TYReads “One hundred years is long enough. End the Fed”

On the 100th anniversary of the creation of the Federal Reserve (FED), designed in secrecy by a group of Wall Street bankers and voted into existence by the American Congress on december 23 1913, Ron Paul publishes this article arguing that its creators have succeeded beyond their wildest dreams, and that the FED has taken total control of the american economy, and not for the good.

To illustrate Ron Paul’s message we include 2 charts. In the first one we can see the loss in purchasing power of the US Dollar from around 1900 until today. In the second one we can see the percentage silver content in the Roman Denarius from around 180 AD to 280 AD, after the government of the Antonines, when Rome went into rapid decline.

devaluation_dollar1

devaluation_denarius

The article:

After 100 Years Of Failure, It’s Time To End The Fed!

A week from now, the Federal Reserve System will celebrate the 100th anniversary of its founding. Resulting from secret negotiations between bankers and politicians at Jekyll Island, the Fed’s creation established a banking cartel and a board of government overseers that has grown ever stronger through the years. One would think this anniversary would elicit some sort of public recognition of the Fed’s growth from a quasi-agent of the Treasury Department intended to provide an elastic currency, to a de facto independent institution that has taken complete control of the economy through its central monetary planning. But just like the Fed’s creation, its 100th anniversary may come and go with only a few passing mentions.

Like many other horrible and unconstitutional pieces of legislation, the bill which created the Fed, the Federal Reserve Act, was passed under great pressure on December 23, 1913, in the waning moments before Congress recessed for Christmas with many Members already absent from those final votes. This underhanded method of pressuring Congress with such a deadline to pass the Federal Reserve Act would provide a foreshadowing of the Fed’s insidious effects on the US economy—with actions performed without transparency.

Ostensibly formed with the goal of preventing financial crises such as the Panic of 1907, the Fed has become increasingly powerful over the years. Rather than preventing financial crises, however, the Fed has constantly caused new ones. Barely a few years after its inception, the Fed’s inflationary monetary policy to help fund World War I led to the Depression of 1920. After the economy bounced back from that episode, a further injection of easy money and credit by the Fed led to the Roaring Twenties and to the Great Depression, the worst economic crisis in American history.

But even though the Fed continued to make the same mistakes over and over again, no one in Washington ever questioned the wisdom of having a central bank. Instead, after each episode the Fed was given more and more power over the economy. Even though the Fed had brought about the stagflation of the 1970s, Congress decided to formally task the Federal Reserve in 1978 with maintaining full employment and stable prices, combined with constantly adding horrendously harmful regulations. Talk about putting the inmates in charge of the asylum!

Now we are reaping the noxious effects of a century of loose monetary policy, as our economy remains mired in mediocrity and utterly dependent on a stream of easy money from the central bank. A century ago, politicians failed to understand that the financial panics of the 19th century were caused by collusion between government and the banking sector. The government’s growing monopoly on money creation, high barriers to entry into banking to protect politically favored incumbents, and favored treatment for government debt combined to create a rickety, panic-prone banking system. Had legislators known then what we know now, we could hope that they never would have established the Federal Reserve System.

Today, however, we do know better. We know that the Federal Reserve continues to strengthen the collusion between banks and politicians. We know that the Fed’s inflationary monetary policy continues to reap profits for Wall Street while impoverishing Main Street. And we know that the current monetary regime is teetering on a precipice. One hundred years is long enough. End the Fed.