Today’s News 14th June 2019

  • Party Foul: The London Metals Exchange Has Banned Drinking During The Workday

    You don’t have to go home, but you can’t stay here.

    Daytime drinking, which we previously reported had become a point of contention at Lloyd’s of London, has now been banned for metals traders at the London Metal Exchange. What used to be a staple of the open outcry pit at the LME is no longer, according to Bloomberg.

    In a meeting on Thursday, the LME notified its open outcry dealers that it is now expecting a zero tolerance alcohol policy for floor traders, who are responsible for setting the global benchmark prices for metals like copper and aluminum. The exchange said that they could impose fines and trading bans on individuals for breaking the rules.

    The LME already bans what Bloomberg called “engaging in drunken behavior” (like buying equities?) on the floor, but this policy would go further to break the long-held correlation with open outcry traders and heavy drinking that stretches back to Victorian times.

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    For instance, Nigel Farage, who started his career on the trading floor before politics, has often recounted details of “his booze fueled exploits” during his career in London. It is just one account that has helped perpetuate the image of drinking being associated with being a metals trader.

    Many member firms of the LME have also sought to clean up the industry’s reputation. The exchange added rules in April that would prohibit members from holding “sleazy parties” at venues such as strip clubs and casinos – because the LME isn’t a casino in and of itself, right? The ban was part of a new code of conduct, which we’re sure will likely be ridiculed as it’s passed around the table over pints at lunch by long established metals traders.

    The ban also follows the zero-tolerance policy announced by Lloyd’s of London that we wrote about months ago, after Bloomberg Businessweek reported a “deep-steated culture of sexual misconduct” in the UK capital’s insurance market. The LME was previously located on the same road as Lloyd’s, and metals traders often frequented the same pubs as Lloyd’s dealers.

  • The Hitlerization Of Jeremy Corbyn (Among Others)

    Authored (satirically) by CJ Hopkins via The Unz Review,

    Every time you think the corporatocracy’s manufactured anti-Semitism hysteria cannot possibly get more absurd, they somehow manage to outdo themselves. OK, stay with me now, because this is a weird one.

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    Apparently, American Hitler and his cronies are conspiring with some secret group of “Jewish leaders” to stop British Hitler from becoming prime minister and wiping out all the Jews in Great Britain. Weird, right? But that’s not the weird part, because maybe American Hitler wants to wipe out all the Jews in Great Britain himself, rather than leaving it to British Hitler … Hitlers being notoriously jealous regarding their genocidal accomplishments.

    No, the weird part is that everyone knows that American Hitler does not make a move without the approval of Russian Hitler, who is also obsessed with wiping out the Jews, and with destroying the fabric of Western democracy. So why would Russian Hitler want to let American Hitler and his goons thwart the ascendancy of British Hitler, who, in addition to wanting to wipe out all the Jews, also wants to destroy democracy by fascistically refunding the NHS, renationalizing the rail system, and so on?

    It doesn’t make a whole lot of sense, does it? In any event, here’s the official story.

    In “a recording leaked to The Washington Post,” and then flogged by the rest of the corporate media, Reichsminister des Auswärtigen, Mike Pompeo, told a group of unnamed “Jewish leaders” that American Hitler (i.e., Donald Trump) will “push back” (i.e., intervene) against British Hitler (i.e., Jeremy Corbyn) to protect the lives of Jews in Great Britain if British Hitler becomes prime minister (and is possibly already doing so now). The identities of these “Jewish leaders” have not been disclosed by the corporate media, presumably in order to protect them from being murdered by Corbyn’s Nazi hit squad. Whoever they were, they wanted to know whether American Hitler and his fascist cabinet were “willing to work with [them] to take on actions if life becomes very difficult for Jews” after Jeremy Corbyn seizes power, declares himself Führer of Communist Britannia, and orders the immediate invasion of France.

    To anyone who has been closely following the corporate media’s relentless coverage of Jeremy Corbyn’s Nazi Death Cult (i.e., the UK Labour Party) and the global Anti-Semitism Pandemic, it comes as no real surprise that this group of “Jewish leaders” (whoever they are) would want to stop him from becoming prime minister. I doubt that their motives have much to do with fighting anti-Semitism, or anything else specifically “Jewish,” but … well, I’m kind of old-fashioned that way. I still believe there’s a fundamental difference between “the Jews” and the global capitalist ruling classes.

    I realize that both the neoliberal establishment and the neo-fascist fringe disagree with me, and that both are determined (for different reasons) to conflate the two in the public’s mind, but that’s my take, and I’m sticking to it. I don’t think the world is controlled by “the Jews.” I think it’s controlled by global capitalism.

    Go ahead, call me a conspiracy theorist. Here’s how the anti-Semitism panic in the United Kingdom looks to me.

    After nearly 40 years of privatization and restructuring, British society is on the brink of being permanently transformed into the type of savage, neo-feudal, corporatist nightmare that the USA already is. The global capitalist ruling classes are extremely pleased about this state of affairs. They would now like to finish up privatizing Britain, so they can get on with privatizing the rest of Europe. The last thing they need at this critical juncture is Jeremy Corbyn to become prime minister and start attempting to remake their nascent neoliberal marketplace into a society … you know, where healthcare is guaranteed to all, you don’t need a mortgage to buy a train ticket, and people don’t have to eat out of trash bins.

    Unlike in the USA, where there is no functional political Left, and where the non-parliamentary “two-party system” is almost totally controlled by the corporatocracy, in the UK, there are still a few old-fashioned socialists, and they have taken back the Labour Party from the neoliberal Blairite stooges that had been managing the transformation of Britain into the aforementioned neo-feudal nightmare. Jeremy Corbyn is the leader of these socialists. So the corporatocracy needs to destroy him, take back control of the Labour Party, and turn it back into a fake left party, like the Democratic Party in the USA, so they can concentrate on crushing the right-wing populists. Thus, they need to Hitlerize Corbyn, so they can fold him into their official narrative, Democracy vs. The Putin-Nazis.

    And, see, this is what makes the corporatocracy’s War on Populism so seemingly psychotic … at least to anyone paying attention.

    In the USA, the populist insurgency is primarily a right-wing phenomenon (because, again, there is no Left to speak of). Thus, the neoliberal ruling classes are focused on Hitlerizing Donald Trump, and stigmatizing the millions of Americans who voted for him as a bunch of Nazis. Hitlerizing Trump has been ridiculously easy (he almost Hitlerizes himself), but the ultimate goal is to delegitimize the populist sentiment that put him into office. That sentiment is primarily neo-nationalist. So it’s a one-front counter-insurgency op (i.e., neoliberalism versus neo-nationalism).

    In the UK, things are not that simple. There, the neoliberal ruling classes are waging a counter-insurgency op against populist forces on two major fronts: (1) the Brexiters (i.e., nationalism); and (2) the Corbynists (i.e., socialism). They’re getting hit from both the left and right, which is screwing up the official narrative (according to which the “enemies of democracy” are supposed to be right-wing neo-nationalists). So, as contradictory and absurd as it sounds, they needed to conflate both left and right populism into one big scary Hitlerian enemy. Thus, they needed to Hitlerize Corbyn. Presto … Labour Anti-Semitism crisis!

    Now, anyone who is isn’t a gibbering idiot knows that Jeremy Corbyn is not an anti-Semite and the Labour Party is not a hive of Nazis. It’s a testament to the power of the corporate media that such a statement even needs to be made … but, of course, that’s the point of the smear campaign the neoliberal corporate media have been waging for the last three years.

    Smear campaigns are simple and effective. The goal is to force your target and his allies into proclaiming things like, “I am not an anti-Semite,” or “I’ve never had sex with underage boys,” or whatever smear you want to force them to deny. You don’t have to prove your target guilty. You’re just trying to conjure up a “reality” in which every time someone thinks of your target they associate him with the content of your smears.

    The corporate media have done just that, to Jeremy Corbyn, to Donald Trump, to Putin, and to assorted lesser figures. They did it to Sanders in 2016. They are doing it now to Tulsi Gabbard. The goal is not only to smear these targets, but also, and more so, to conjure a “world” that reifies the narrative of their smears … a binary “good versus evil” world, a world in which whatever they want to accuse their targets of being linked to (e.g., terrorism, fascism, racism, or whatever) is the official enemy of all that is good.

    Since the Brexit referendum and the election of Trump, the ruling classes have conjured up a world where “democracy” is perpetually under attack by a global conspiracy of “Russians” and “Nazis” (just as they previously conjured up a world where it was perpetually under attack by “terrorists”). They have conjured up a post-Orwellian reality in which “democracy” (i.e., global capitalism) is the only alternative to “neo-fascism” (i.e., anything opposed to global capitalism).

    And this is why Corbyn had to be Hitlerized, and why Putin, Trump, Assad, Gabbard, Assange, the “Yellow Vest” protesters in France, and anyone else opposing global neoliberalism has to be Hitlerized. Socialism, nationalism … it makes no difference, not to the global capitalist ruling classes. There are always only two sides in these “worlds” that the ruling classes conjure up for us, and there can be only one official enemy. The official enemy of the moment is “fascism.” Therefore, all the “bad guys” are Hitler, or Nazis, or racists, or anti-Semites, or some other variation of Hitler.

    The fact that this “reality” they have conjured up for us is completely psychotic makes it no less real. And it is only going to get more insane until the corporatocracy restores “normality.” So, go ahead, if you consider yourself “normal,” and try to force your mind to believe that…

    Jews are no longer safe in Great Britain, or in Germany, or France, or the USA,

    and that Donald Trump is a Russian asset,

    and is also literally Adolf Hitler,

    and an anti-Semitic white supremacist who is conspiring with Israel and Saudi Arabia in their campaign to destroy Iran and Syria,

    which are allies of his Russian masters, as is Venezuela, which he is also menacing,

    and that Jeremy Corbyn’s secret plan is to turn the UK into Nazi Germany,

    with the support of Trump,

    who is trying to destroy him,

    and that the Yellow Vests are Russian-backed fascists,

    and that Julian Assange is a rapist spy who conspired with Russia to get Trump elected,

    which is why Trump wants to prosecute him,

    just as soon as he finishes wiping out the Jews,

    or protecting them from Jeremy Corbyn,

    or from Iran,

    or brainwashing Black Americans into reelecting him in 2020 with a handful of Russian Facebook ads.

    Go ahead, try to reconcile all that … or whatever, don’t.

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    Just take whatever medication you happen to be on, crank up CNN, MSNBC, or any other corporate media channel, and report me to the Internet Police for posting dangerous “extremist” content. You know, in your heart, I probably deserve it.

  • From Dollar Hegemony To Global Warming: Globalization, Glyphosate, And Doctrines Of Consent

    Authored by Colin Todhunter via Counterpunch.org,

    There has been an on-going tectonic shift in the West since the abandonment of the Bretton Woods agreement in 1971. This accelerated when the USSR ended and has resulted in the ‘neoliberal globalization’ we see today.

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    At the same time, there has been an unprecedented campaign to re-engineer social consensus in the West. Part of this strategy, involves getting populations in Western countries to fixate on ‘global warming’, ‘gender equity’ and ‘anti-racism’: by focusing on identity politics and climate change, the devastating effects and injustices brought about by globalized capitalism and associated militarism largely remain unchallenged by the masses and stay firmly in the background.

    This is the argument presented by Denis Rancourt, researcher at Ontario Civil Liberties Association, in a new report. Rancourt is a former full professor of physics at the University of Ottawa in Canada and author of ‘Geo-economics and geo-politics drive successive eras of predatory globalization and social engineering: Historical emergence of climate change, gender equity, and anti-racism as state doctrines’ (April 2019).

    In the report, Rancourt references Michael Hudson’s 1972 book ‘Super Imperialism: The Economic Strategy of American Empire’ to help explain the key role of maintaining dollar hegemony and the importance of the petrodollar to US global dominance. Aside from the significance of oil, Rancourt argues that the US has an existential interest to ensure that opioid drugs are traded in US dollars, another major global commodity. This explains the US occupation of Afghanistan. He also pinpoints the importance of US agribusiness and the arms industry in helping to secure US geostrategic goals.

    Since the fall of the USSR in 1991, Rancourt says that US war campaigns have, among other things, protected the US dollar from abandonment, destroyed nations seeking sovereignty from US dominance, secured the opium trade, increased control over oil and have frustrated Eurasian integration. In addition, we have seen certain countries face a bombardment of sanctions and hostility in an attempt to destroy energy-producing centres that the US does not control, not least Russia.

    He also outlines the impacts within Western countries too, including: the systematic relative loss of middle-class economic status, the rise of urban homelessness, the decimation of the industrial working class, corporate megamergers, rising inequality, the dismantling of welfare, financial speculation, stagnant wages, debt, deregulation and privatisation. In addition, the increased leniency in food and drug regulation has led to the dramatic increase in the use of the herbicide glyphosate, which has been concurrent with upsurges of many diseases and chronic ailments.

    In the face of this devastation, Western nations have had to secure ongoing consent among their own populations. To help explain how this has been achieved, Rancourt focuses on gender equity, anti-racism and global warming as state doctrines that have been used to divert attention from the machinations of US empire (and also to prevent class consciousness taking hold). I recently asked Denis Rancourt about this aspect of his report.

    CT: Can you say a bit about yourself and how you came to produce this report? What is it meant to achieve?

    DR:  I’m a former physics professor, environmental scientist and a civil rights advocate. I currently work as a researcher for the Ontario Civil Liberties Association (ocla.ca). During a conversation about civil rights issues I had with the executive director of OCLA, we identified several important societal and economic phenomena that seemed to be related to the early 1990s. So, I eventually settled in to do some ‘heavy lifting’, research wise.

    While there is no lack of hired intellectuals and experts to wrongly guide our perception, my research demonstrates a link between surges in large-scale suppression and exploitation of national populations with the acceleration of an aggressive, exploitative globalization.

    CT: In your report, you’ve described the consequences of the abandonment of Bretton Woods and the dissolution of the USSR in terms of dollar hegemony, US militarism and the devastating impacts of ‘neoliberal globalisation’ both for nation states and for ordinary people.

    There is little doubt that Russian and Chinese analysts have a solid understanding of what I have outlined in my report. For instance, foreshadowing Trump’s trade war, the People’s Liberation Army Major-General Qiao Liang’s April 2015 speech to the Chinese Communist Party’s Central Committee and government office, included the following:

    “Since that day [dissolution of Bretton Woods], a true financial empire has emerged, the US dollar’s hegemony has been established, and we have entered a true paper currency era. There is no precious metal behind the US dollar. The government’s credit is the sole support for the US dollar. The US makes a profit from the whole world. This means that the Americans can obtain material wealth from the world by printing a piece of green paper. […] If we [now] acknowledge that there is a US dollar index cycle [punctuated by engineered crises, including war] and the Americans use this cycle to harvest from other countries, then we can conclude that it was time for the Americans to harvest China…”

    CT: You discuss the need for states to ensure consent: the need to pacify, hypnotize and align populations for continued globalization; more precisely, the need to divert attention from the structural violence of economic policies and the actual violence of militarism. Can you say something about how the issue of global warming relates to this?

    DR:  Irrespective of whether the so-called ‘climate crisis’ is real, exaggerated or fabricated, it is clear, from the data in my report, that the ethos of global warming was engineered on a global scale and benefits the exploiters of the carbon-economy and, more indirectly, the state.

    For example, one of the studies that I review shows that a many-fold increase in mainstream media reporting about global warming suddenly occurred in the mid-2000s, in all the leading news media, at the same time that the financiers and their acolytes such as Al Gore decided to make and manage a global carbon economy. This media campaign has been sustained ever since and the global warming ethos has been institutionalized.

    Carbon sequestration schemes have devastated local communities on every occupied continent. If anything, carbon schemes − from wind farms to biofuel harvesting to industrial battery production to solar-cell array installations to mining uranium to mega hydro-dam construction and so on – have accelerated habitat destruction.

    Meanwhile, economic and military warfare rages, glyphosate is dumped into the ecosphere at unprecedented rates (poured on GM herbicide-resistant cash crops), active genocides are in progress (Yemen), the US is unilaterally withdrawing from nuclear treaties and forcing an arms race with next generation death machines and US-held extortionary loans are serviced by land-use transformation on the scale of nations; while our educated children have nervous breakdowns trying to get governments to “act” on “climate”.

    In the early-1990s, a world conference on climate environmentalism was an express response to the dissolution of the Soviet Union. This was part of a global propaganda project intended to mask the new wave of accelerated predatory globalism that was unleashed now that the USSR was definitively out of the way.

    CT: What are your thoughts on Greta Thunberg and the movement surrounding her?

    DR:  It is sad and pathetic. The movement is a testament to the success of the global propaganda project that I describe in my report. The movement is also an indicator of the degree to which totalitarianism has taken hold in Western societies; wherein individuals, associations and institutions lose their ability for independent thought to steer society away from the designs of an occupying elite. Individuals (and their parents) become morality police in the service of this ‘environmentalism’.

    CT: You also talk about the emergence of gender-equity (third wave feminism) and anti-racism as state doctrines. Can you say something about this? 

    DR: In my report, I use historical institutional records and societal data to demonstrate that a triad of ‘state religions’ was globally engendered and emerged on cue following the dissolution of the Soviet Union. This triad consists of climate alarmism, exaggerated tunnel-vision focus on gender equity and a campaign of anti-racism focussed on engineering thoughts, language and attitudes.

    These state ideologies were conceived and propelled by UN efforts and the resulting signed protocols. Western academia enthusiastically took up and institutionalized the program. Mainstream media religiously promoted the newly minted ethos. Political parties largely applied increased quotas of gender and race elected representatives.

    These processes and ideas served to sooth, massage and occupy the Western mind, especially among the upper-middle, professional and managerial classes and the elite classes of economically occupied territories but did nothing to alleviate the most violent and globally widespread forms of actual racism and misogyny as a result of predatory globalization and militarism.

    Ironically, the global attacks on human dignity, human health and the environment were in proportion to the systematic and sometimes shrill calls for gender equity, anti-racism and climate ‘action’. The entire edifice of these ‘state religions’ leaves no room for required conflicts of class and expressly undermines any questioning of the mechanisms and consequences of globalization.

    CT: Can you say something about the Gilets Jaunes (Yellow Vests), Brexit and the Trump electoral phenomenon.

    DR: Combine aggressive globalization, constant financial predation, gutting of the Western working and middle classes and a glib discourse of climate change, anti-racism and gender equity and something has to give. French geographer Christophe Guilluy predicted the reactions in some detail, and it is not difficult to understand. It is no accident that the revolting working- and middle-classes are critical of the narratives of climate crisis, anti-racism and gender equity; and that their voices are cast by the mainstream media as racist, misogynist and ignorant of science.

    It seems that any class which opposes its own destruction is accused of being populated by racist and ignorant folks that can’t see that salvation lies in a carbon-managed and globalized world. It becomes imperative, therefore, to shut down all the venues where such an ‘ignorant lot’ could communicate their views, attempt to organize and thereby threaten the prevailing social order.

  • A Timeline Of U-Turns From The Chinese Market

    China’s economic surge is one of the biggest stories of the 21st century.

    Hundreds of millions of people have been lifted out of poverty, and China’s swelling middle class has attracted the interest of Western companies.

    But, as Visual Capitalist’s Nick Routley details below, many American companies have discovered, doing business in China is far from straightforward. Recent history is littered with examples of companies that entered the Chinese market to great fanfare, only to retreat a few years later.

    Calling Off The Offensive

    Today’s infographic highlights 11 companies that ended up tapping the brakes on their ambitious forays on the other side of the Pacific.

    Then, we take a look at the factors that influenced these strategic withdrawals.

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    Here are some high profile examples of corporate u-turns by American companies operating in the Chinese market:

    Google

    When Google China’s search engine was launched in 2006, the company had made the controversial decision to censor search results within the country. Google publicly displayed a disclaimer indicating that some results were removed, which created tensions with the Chinese government.

    For a while, things seemed to be going well. Even though a domestic company, Baidu, had captured the majority of the Chinese search market, Google did have a respectable market share of about 30%.

    Google China’s fortune took a turn for the worse in 2010 after a major hack – Operation Aurora – exposed user data as well as intellectual property. The hack, which originated from within China, was the last straw for Google’s executive team. After one last ditch effort to provide unfiltered search results within China, the company retreated beyond the firewall.

    Amazon

    Amazon was an early entrant into the Chinese market. In 2004, the company acquired Joyo – an online shopping site – which was eventually rebranded to Amazon China in 2011.

    Amazon China achieved some early success hitting a market share of around 15%, but today, that market share has eroded to less than 1%. Facing nearly insurmountable competition from domestic e-commerce platforms like JD and Taobao, the company recently announced it would be exiting the Chinese market.

    Uber

    After arriving fashionably late for the ride-hailing party in 2014, it quickly became clear that Uber was facing an uphill battle against well-funded domestic rivals. After only two years, Uber elected to u-turn out of the Chinese market.

    Though Uber’s tactical exit from China is often viewed as a failure, the company has earned upwards of $8B through its sale to competitor Didi Chuxing.

    A Two-Way Street

    Now that red-hot growth at home is beginning to taper off, a number of Chinese companies have begun their push into other markets around the world. Much like their American counterparts, brands pushing beyond China’s borders are seeing varied success in their expansion efforts.

    One high-profile example is Huawei. The telecommunications giant has been making inroads in countries around the world – particularly in emerging markets – but has seen pushback and scrutiny in a number of developed economies. Huawei has become a lightning rod for growing concerns over government surveillance and China’s growing influence over the global communications network.

    Already, Australia has blocked the company from participating in its 5G network, and in the United States, government agencies are banned from buying Huawei gear.

    If negative sentiment continues to build, it remains to be seen whether Huawei and other Chinese companies will follow the playbook of American brands in China, and turn the car around.

  • Just When You Thought Surveillance Tech Couldn't Get Any More Orwellian…

    Authored by ‘Graywolf’ via The Organic Prepper blog,

    One of my favorite TV shows was Person of Interest. In that show, a genius programmer was hired by the government to develop an artificial intelligence (AI) computer to tap into and analyze communication feeds and predict activities that may pose a threat. Unfortunately, as you can imagine, things spun out of control; the system that was designed to benefit society was not always beneficial to citizens.

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    As amusing as it is to watch escapist fiction such as this, it’s not so enjoyable when you realize it’s no longer fiction. China has already developed the infrastructure to envelop their citizens in this protective surveillance net and has begun that slippery slope of using AI to not only catch activities deemed undesired by the government – it’s starting to take action against those observed.

    In the city of Shenzhen (and most likely others), when an offender is observed jaywalking via video surveillance, they will publicly humiliate you by showing your face on screens located around the city. Now that’s bad enough but they’re going a step further. Those identified will have their cell phone ‘pinged’ and be sent an immediate fine.

    By the way, Intellifusion, the company behind the AI system involved is in talks with WeChat and Seina Weibo (China’s equivalents of Facebook and Twitter).

    The surveillance state is expanding, and even children are not exempt.

    You may think there must be some kind of check-and-balance system built in to ensure that children would be protected so that they wouldn’t suffer the same consequences as an adult. You’d be wrong.

    As you can imagine, this outing of a child in such a public manner has sparked outrage. Instead of backing down on their stance, the police have doubled down and stated that no one is above the law and its draconian reaction. Of course they have. I know if I wanted to start weeding out hidden miscreants, I’d set up exactly this scenario. Guess what’s going to happen to those expressing their discontent.

    You may think that all this isn’t so bad because it’s just surveillance out in the street, where people can see you anyway, so what’s the big deal? Well, this is just the beginning. In order to crack down on children playing on gambling sites on their computers, corporations are now starting to institute facial recognition utilizing the user’s webcam. Of course children shouldn’t be gambling but now long until this in-home video requirement expands to include normal, everyday websites such as social media? How long until they convince you it’s much more convenient for you to just use cameras that you can have installed in your home to protect children, assist in gaining you access to what you need, and help you increase your social credit by watching your good deeds at home at the same time?

    Surveillance systems are insidious and are finding their way into our homes.

    In case you’re one of those ‘careful’ types who wouldn’t allow that kind of nonsense in your home, Huawei and other very large manufacturers of electronics in China and around the world have become big suppliers to China’s security services. All they need to do is develop surveillance systems that help improve our lives at the same time so we actually pay for the privilege. Systems such as Ulo not only watch your home for you, it becomes part of your family. Can you think of other surveillance systems that we’ve now graciously invited into our homes?

    What has begun is the dismantling of due process and the systematic expansion of systems that can be mined for data. Not only is every action observed, anything that the program decides is aberrant or not beneficial can now be punished without any intervention or legal protection – and no one is safe.

    Now, most likely, you are reading this from a country outside of China, so why do you care? The AI in the fictional TV show based in the U.S., Person of Interest couldn’t ever become a reality, could it? Systems in the U.S. have been able to automatically scan license plates for a while now and alert police to stolen vehicles. Cameras are now on pretty much every intersection in any city in the country and along the highways. The infrastructure to start this kind of surveillance state is already in place. All it would take is to somehow tap into this system with an AI to observe human behavior and perhaps even judge and jury like what’s happening in China. Unfortunately, this is also becoming a reality.

    Some surveillance systems can detect concealed weapons and alert authorities.

    A company called ZeroEyes has developed a system that can detect and alert the presence of even concealed weapons, resulting in a visual pat-down that only requires a camera in the room. Of course, if this is used to protect a facility that lets you know that entry is tacit approval, that’s one thing. ZeroEyes is already working with school systems and is moving toward a deal with U.S. Customs and Border Patrol.

    Another company that is in the weapon-identification game is called Athena, but it has taken this one step further. Not only does their AI detect hidden weapons, it detects and alerts to human behavior itself. It learns how people move and their facial expressions and then decides when someone is acting strangely and alerts the authorities.

    How long until they plug these AI systems into cameras all throughout town and even in our homes? How long until these systems start being used in ways that we were assured would not happen? How long until those with criminal or political intentions start using AI and surveillance to coerce behavior and punish those who don’t toe the party line?

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    Graywolf is a former Counterintelligence Agent and US Army combat veteran. His experience as an agent, soldier and government contractor on assignments around the world gives him a unique perspective on the world and how to deal with it. His website is Graywolf Survival.

  • Automating Vegas: How Robots Will Take Thousands Of Sin City's Jobs

    The automation wave is expected to reshape the US economy in the 2020s. This disruption will impact the labor force and cause tremendous job losses. By 2030, automation could eliminate 20% to 25% of current jobs — equivalent to 40 million displaced workers, hitting bottom 90% of Americans the hardest.

    Last month, we reported how the Port of Los Angeles is preparing for full automation. Last week, showed how warehouse automation is starting to increase traction in Atlanta — now in a new report, robots are coming to Las Vegas.

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    The adoption of automation at Southern Nevada casinos could displace thousands of workers in the next five years.

    The Reno Gazette-Journal asks several crucial questions: What does a future with robots look like in Las Vegas? What will happen to a service industry hopeful that union powers will provide protection? Should workers be afraid?

    “Show me a car that (is) built on an assembly line that isn’t populated with robots and humans together,” said Robert Rippee, director of the Hospitality Lab at UNLV’s International Gaming Institute.

    Automation technologies are rippling through the hospitality industry, forcing some casinos to recalibrate their labor force.

    “I’m surprised, in some cases, it’s taken this long,” Rippee said. “On the other hand, it’s certainly understandable that people are saying: ‘That’s my livelihood, that’s my job. You’re going to bring a machine in? What am I going to do?’ “

    MGM has been quietly rolling out automation technologies. Last August, the gaming giant installed automated beverage systems – known as “Back of House Automated Service Bars.”

    The automation, according to MGM, eliminates redundant human labor, allowing front of house employees to self-serve guests and reduce wait times.

    In a separate report, Miracle Mile Shops, next to Planet Hollywood Resort, installed the first robotic bar on the strip.

    World’s 1st land-based bar to deploy robot bartenders opens in Las Vegas. Enjoy yourself! pic.twitter.com/Zy3gslBkp2

    — China Xinhua News (@XHNews) July 10, 2017

    The Mandarin Oriental employs Pepper, a humanoid robot from SoftBank Robotics. Located in the Lobby, the robot supports staff by handling tasks like welcoming visitors, providing directions and answering questions about the facility.

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    Culinary Workers Union Local 226, Nevada’s largest labor union, held several meetings last year about how robots could impact their jobs.

    The Culinary union negotiated a deal with casinos that includes some protections from job displacement due to automation.

    Under this agreement, MGM and other casinos must give employees six months notice if their job is taken by a robot.

    Despite the automation threat, Culinary Union spokeswoman Bethany Khan said union workers will always have jobs.

    “Jobs are never going to be eliminated,” Khan said. “There are endless opportunities for retraining. We see technology as assistive and supportive.”

    Experts say the collision of automation won’t lead to a robot apocalypse but will instead transform the labor force, eliminating thousands of low skill jobs in Vegas in the years ahead. 

    If automation adoption debuts in Vegas at a slow rate, it’ll allow workers who lose their jobs time to retool their skills. But rapid automation of Vegas, for example, could eliminate tens of thousands of jobs in the next ten years.

    Automating Las Vegas has started, a new wave of investment in robots is set to disrupt the city’s entire gaming and hospitality industry and lead to substantial job losses through the 2020s.

  • US Releases "Smoking Gun" Video Of Iran's Navy Handling Mine On Tanker Hull

    In a perhaps positive sign that could slow the attempts of hawks within the administration to push for war over Thursday’s mysterious attacks on two tankers in the Gulf of Oman, US Central Command issued a statement just hours after Pompeo officially blamed Tehran, saying in a CENTCOM press release that “a war with Iran is not in our strategic interest, nor in the best interest of the international community.”

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    Screenshot of newly released CENTCOM footage which US officials say shows Iran caught in the act of removing an unexploded mine from one of the tankers attacked on Thursday. 

    The statement further called for a formal UN investigation into the incident, something for which there’s already international momentum. Iran has “categorically” denied having anything to do with the attack, saying through FM Zarif “Suspicious doesn’t begin to describe what likely transpired”.

    The entire bizarre event had immediately evoked unusual levels of public skepticism from media pundits to social media users to even CNN.

    Iran’s permanent mission to the UN said on Thursday evening that it “categorically rejects the U.S. unfounded claim with regard to 13 June oil tanker incidents and condemns it in the strongest possible terms,” according to Bloomberg.

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    The Front Altair oil tanker on fire in the Gulf of Oman on June 13, 2019. AP Photo/ISNA

    US Central Command spokesman Lieutenant Colonel Earl Brown said in the CENTCOM statement: “The U.S. and our regional partners are assisting in the response to attacks in the Gulf of Oman. The U.S. and the international community stand ready to defend our interests, including freedom of navigation.”

    Crucially, the statement continued: “We have no interest in engaging in a new conflict in the Middle East,” and added, “We will defend our interests, but a war with Iran is not in our strategic interest, nor in the best interest of the international community.”

    And further interesting is that the administration is claiming possession of photographic and video evidence that the massive fires aboard the tankers, which resulted in the USS Bainbridge initiating an emergency rescue of at least 21 mariners from one of the tankers, were the result of mines placed on the vessels. According to Bloomberg:

    Senior administration officials said that at least one of the ships was attacked by mines. In a briefing with reporters, they showed a photo of a tanker, the Courageous, with a hole in its side caused by a mine that exploded, they said, and an undetonated mine lodged inside.

    The officials said they didn’t know for sure whether the mines were Iranian. The U.S. concluded that Iran was responsible for the attacks based on intelligence sources and the absence of any better explanation, the officials said. They declined to elaborate on the intelligence sources.

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    Ironically, though it was the US side that pulled out of the 2015 Iran nuclear deal (JCPOA), US officials further said Iran’s motive was “to escalate the conflict” with Washington because “it’s not interested in discussions with the U.S.,” according to the Bloomberg report. 

    CBS has the following detail concerning video evidence pointing to an attack operation involving mines

    A U.S. defense official told CBS News that the U.S. has video of a small boat coming alongside one of the tankers that was attacked and removing an unexploded “limpet” mine — a type of explosive that can be stuck manually to the side of a vessel. It is the same type of weapon U.S. officials say Iran used to attack four oil tankers off the nearby Emirati port of Fujairah last month.

    But is this what the grainy footage actually shows? It’s anything but clear just what is going on in the newly released CENTCOM footage:

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    US officials also told CNN that the video of the mine involved Japanese-owned chemical tanker Kokura Courageous, and that the “small boat” belonged to the Iranian navy. 

    The CNN report claims Iran’s navy was observed removing an unexploded mine, suggesting early statements that Iran was actually involved in rescue efforts could be true, though the exact nature of just what the purported video proves remains unclear:

    The United States has video and photos that show an Iranian navy boat removing an unexploded mine attached to the hull of the Japanese-owned chemical tanker Kokura Courageous, four US officials tell CNN.

    The anonymous US sources which spoke to CNN suggested the Iranians were actually “removing evidence” and not engaged in a rescue attempt, as the Iranians previously stated:  

    The official said the imagery shows a person on board that small boat grabbing the unexploded mine.

      The boat made the move even after the USS Bainbridge, as well as a US drone and P-8 aircraft, had been on the scene for four hours. US defense officials believe that the Iranians were seeking to recover evidence of their involvement in the attack.

      Meanwhile, the question of custody over evidence so near Iran’s territorial waters in the Strait of Hormuz will likely quickly prove contentious. 

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      The latest reports suggest the tanker Front Altair is in danger of sinking, while the Japanese owned Panama-flagged Kokuka Courageous is said to be drifting into Iranian territorial waters, which could create a conflict over the vessel’s recovery with the US, which will no doubt want to have control over all available evidence. 

    • Watch: Scientists Create "Deepfake" Software Allowing Anyone To Edit Anything Anyone Says On Video

      Scientists at Stanford are doing their part to create what will be an inevitable dystopian nightmare.

      The staff at the Max Planck Institute for Informatics, Princeton University and Adobe Research have developed software that allows you to now edit and change what people are saying in videos, allowing anyone to edit anybody into saying anything, according to Observer

      The software uses machine learning and 3-D models of the target’s face to generate new footage which allows the user to change, edit and remove words that are coming out of a person’s mouth on video, simply by typing in new text. Not only that, the changes appear to have a seamless audio/visual flow without cuts.

      Here’s a video of the frightening software at work.

      We’re sure there will be absolutely no blowback at all to this. After all, just last week, there was public outrage with somebody jokingly edited a video of Nancy Pelosi to make her seem drunk. What would happen if somebody edited a video of her speaking to have her swear wildly, or say racist things?

      This deepfake software is already being described as “the equivalent of Christmas coming early for a Russian troll farm”, now that the 2020 election is underway. We’re sure it’ll eventually also be a topic du jour on MSNBC and CNN if Trump wins again in 2020. 

      And we have to ask: how long before the software is incorporated into Adobe‘s retail video editing software? After all, the software company already forces users to read a massive disclaimer that states:

      We also believe that it is essential to obtain permission from the performers for any alteration before sharing a resulting video with a broad audience.

      And…

      We acknowledge that bad actors might use such technologies to falsify personal statements and slander prominent individuals. We are concerned about such deception and misuse.

      Are they covering themselves legally for this “technology” to go mainstream?

      Meanwhile, joke deepfakes continue to pop up, like this fake video of Mark Zuckerberg sitting at a desk giving a nefarious sounding speech about Facebook‘s power.

      //www.instagram.com/embed.js

      Joe Rogan was also victim to a deepfake by the AI company Dessa recently, who released audio making it sound like he is discussing chimpanzee hockey.

      Don’t worry though, we’re sure this won’t fall into the wrong hands.

    • US Blames Iran For Tanker Attacks, Says Tehran "Trying To Interrupt Flow Of Oil"

      Update 7: Ahead of comments to the UN Security Council (which will presumably block any action, with China and Russia backing Iran), unnamed officials are sharing with reporters some of what the US intends to say:

      • U.S. OFFICIALS ALLEGE IRANIAN ATTACK MEANT TO ESCALATE CONFLICT
      • OFFICIALS: ATTACK SHOWS IRAN UNINTERESTED IN DIALOGUE WITH U.S.
      • OFFICIALS: OPTIONS UNDER CONSIDERATION INCLUDE TANKER ESCORTS

      Earlier, the Saudis presented a letter to the council claiming that the Iran-backed Houthis had obtained special weapons training and were responsible for Wednesday’s attack on Abha airport.

      Pompeo said earlier that the US was in possession of “intelligence” suggesting Iran is behind the attack…but he neglected to offer any poof.

      * * *

      Update 6: And there it is…

      The Trump Administration has officially concluded that Iran is responsible for Thursday’s attacks, Secretary of State Mike Pompeo said Thursday during a press briefing.

      The secretary of state and longtime Iran hawk said Iran’s “unprovoked” attacks are part of a campaign to escalate tension in the region and disrupt the flow of the international oil trade (if we can’t sell our oil, nobody can, would appear to be the logic). He also said that Tehran rejected Prime Minister Shinzo Abe’s outreach for diplomacy.

      Here’s an abridged version of Pompeo’s statement, courtesy of CNN:

      “It is the assessment by the United States government that the Islamic Republic of Iran is responsible for the attacks that occurred in the Gulf of Oman today,” Pompeo told reporters at the US State Department.

      “This assessment is based on intelligence, the weapons used, the level of expertise needed to execute the operation, recent similar Iranian attacks on shipping, and the fact that no proxy group operating in the area has the resources and proficiency to act with such a high degree of sophistication.”

      Pompeo followed up his remarks with a tweet:

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      The US is planning to raise concerns about Iran at the UN Security Council, Pompeo said, which is planning to meet to discuss the attacks at 4 pm ET. The US has already presented evidence to the security council that Iran was behind the last round of tanker attacks. The UN has been somewhat more measured in its approach to the attacks. UN Secretary-General Antonio Guterres denounced Thursday’s incidents at a Security Council meeting, saying: “I strongly condemn any attack against civilian incidents,” before adding that “facts must be established and responsibilities clarified.”

      He warned that the world can’t afford “a major confrontation” in the Gulf, Al Jazeera.

      Oil spiked on the headline…

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      …but stocks are sliding.

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      The International Association of Independent Tanker Owners (better known as Intertanko) has released a statement on Thursday’s attack: The two tankers were hit “at or below the waterline, in close proximity to the engine room while underway.” “These appear to be well planned and coordinated attacks,” Intertanko added. Which would support the thesis that a state actor is responsible.

      Earlier, CNN reported that the crew of the USS Bainbridge reported that they saw an unexploded limpet mine on the side of one of the ships attacked in the Gulf of Oman.

      A limpet mine is type of a mine that is attached to a ship’s hull using magnets. They were also believed to have been deployed in May during the attacks on four ships off the coast of the UAE. 

      * * *

      Update 5: A spokesman for the Saudi-led coalition supporting Yemen’s government in the country’s civil war has come out and blamed Iran for Thursday’s attack, saying they believe they can connect it to a similar tanker bombing last year in the Red Sea committed by Yemen’s Iran-backed Houthi rebels. The spokesman called the attack a “major escalation”, and reiterated in what sounded to us like a thinly veiled threat that Saudi Arabia has the capacity to protect its vital institutions.

      You may remember that the Houthis have over the last year repeatedly fired missiles (with mixed success) at Saudi oil fields and even came close to successfully bombing a royal palace.

      Earlier, over in the UK, a spokesperson for the government called the attack on civilian oil tankers “completely unacceptable” and said the UK was ready to assist in the rescue effort and investigation.

      Meanwhile, senior officials from the US and UAE have attributed the attack to a “state actor,” though they neglected to explicitly name Iran.

      All this is happening before the investigation into the attacks has even begun. And BBG’s Javier Blas pointed out that should Iran be found responsible, it would be a strange turn of events since the Front Altair is owned by John Frederiksen, the owner of the Frontline Tanker company, who moved oil for Iran during the “tanker war” with Iraq.

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      And with the John Bolton probably already in Trump’s ear, trying to convince him that “the nuclear option” (that is, actually nuking Iran) finally needs to be put back on the table, western investors hoping to cash in on the escalation have few options to turn to (that is, other than going long oil, but even that trade appears to have its limits, as today’s move would suggest).

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      * * *

      Update 4: Nobody has stepped forward to take responsibility for Thursday’s suspected torpedoing of two oil tankers in the Persian Gulf, and Iran’s Foreign Minister has argued that Iran has nothing to gain and everything to lose by provoking the Europeans and Japanese, but that hasn’t stopped Washington from beating the ol’ war drum.

      According to CBS News, a senior American defense official told the channel’s top national correspondent that “it’s highly likely Iran caused these attacks.” He also dismissed Iran’s claim that it helped rescue the crews of both ships as “patently false,” adding that the USS Bainbridge picked up 21 crew members. Iran said it dispatched a rescue team that picked up all 44 crew members from the two damaged vessels.

      Members of the crew of one ship told CBS’s correspondent that they believed the ship had been hit by a torpedo or a mine, but that the exact nature of the attack couldn’t be confirmed.

      Even more ominously: The official told CBS News that “any retaliation” from the US would depend on whether it can recover hard evidence linking the attacks to Iran, something the official expects they will find after a search of the debris.

      After four tankers were attacked last month in the Strait of Hormuz – a sea-mining attack that the US and Saudi Arabia blamed on Iran – Saudi Arabia reportedly had no appetite for retaliation.  However, that has now changed.

      Iran’s foreign minister isn’t the only one trying to communicate how little Iran has to gain from attacks like these: Bloomberg’s Julian Lee argued in a column that whoever is behind these attacks is ‘no friend of Iran’.

      This would seem very clumsy timing from a country seeing the first tangible signs of any easing of the crippling sanctions imposed by the Americans. But it is absolutely understandable if you’re someone whose ultimate goal is to derail any easing of tensions between the two nations, and to effect regime change in Tehran.

      And as we pointed out earlier, there’s a much, much more sensible culprit somewhere else in the region:

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      * * *

      Update 3: Managers at the companies that own the tankers have weighed in on Thursday’s attacks. The manager of the Kokuka Courageous described the incident as a “hostile attack,” and DHT Holdings and Heidmar, the owners of the two tankers, have suspended new bookings to the Gulf.

      * * *

      Update 2: It appears earlier reports that the Front Altair had sunk were, in fact, incorrect. The ship’s captain has said that it is still afloat. VHF radio traffic confirmed that it is damaged but still afloat.

      Hours have passed since the suspected attacks, and still nobody has claimed responsibility. Iran’s Foreign Minister Javad Zarif has noted how suspicious it is that a Japanese owned vessel would be attacked while Iranian leaders were meeting with the Japanese prime minister in Tehran.

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      And as one BBG analyst pointed out: “Fingers will certainly be pointed at Iran as the mastermind behind these events. But the potential benefits to the Persian Gulf nation are outweighed by the risks. And even if Tehran isn’t responsible, it will still suffer the consequences.”

      Several American warships were nearby when the attack unfolded, per radio traffic, which also showed some signs of tensions with Iranian vessels: “American warship identifying itself as ‘Coalition Warship’ stating they have multiple vessels and aircraft in the vicinity. Iranian Navy calling vessels asking their intention in the area.”

      Meanwhile, the first reported photos of the deck of the Front Altair have surfaced online…and it certainly looks like the ship was hit by a torpedo-like projectile.

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      * * *

      Update: The Front Altair, the Marshall Islands flag tanker damaged in Thursday’s attacks, has now sunk, according to Iranian television. Later, others denied these reports.

      If accurate, the sinking could have a serious impact on oil prices and the environment, as the ship contained twice the amount of oil as Exxon-Valdez.

      While some sources cited torpedoes as the weapons used in the attacks, another said officials suspected the use of a magnetic mine, similar to the devices used during last month’s attacks.

      * * *

      And just like that…war with Iran is now almost assured.

      Roughly one month after the US accused Iran of attacking Saudi- and UAE-docked oil tankers with naval mines in the Strait of Hormuz, two oil tankers were attacked in the Sea of Oman (not far from where the prior attacks occurred), leaving both ships seriously damaged, Bloomberg reports.

      So far, no casualties have been reported. The attack left one of the ships “ablaze and adrift,” according to the Associated Press.

      Sailors from both vessels were being evacuated as the US Navy rushed to assist.

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      <!–[if IE 9]><![endif]–>Fire

      The Bahrain-based US Fifth Fleet said it received distress signals from the two ships roughly 50 minutes apart. As BBG reports, the incident will almost certainly “inflame” tensions between the US and its Arab allies on one hand, and Iran on the other.

      The development will inflame already-rising political tensions in the region weeks after four vessels, including two Saudi oil tankers, were sabotaged in what the U.S. said was an Iranian attack using naval mines. Tehran denied the charge.

      The Bahrain-based Fifth Fleet said it received two separate distress signals at 6:12 a.m. and about 7:00 a.m. local time. “U.S. Navy ships are in the area and are rendering assistance,” Commander Josh Frey, a spokesman, said. Iran said it has rescued 44 sailors.

      Though a suspected aggressor has not yet been officially named, and an investigation into the cause of the incident has only just begun, the notion that Iran will be implicated looks extremely likely, even as South Korean and Iranian ships helped rescue all 44 sailors who were aboard the two ships. Iran has already denied responsibility for the attack.

      <!–[if IE 9]><![endif]–>Fire

      <!–[if IE 9]><![endif]–>BBG

      The manager of one of the tankers, the Panama-flagged, Japanese-owned Kokuka Courageous, which had been carrying a cargo of methanol from Saudi Arabia to Singapore, said the vessel had been damaged as the result of “a suspected attack” by a “shell” though the manager added that the ship’s cargo was secure.

      “The hull has been breached above the water line on the starboard side,” Bernhard Schulte GmbH & Co KG said in a statement on its website.

      Another tanker, Norwegian-owned and Marshall Islands-flagged Front Altair, sent a distress signal to the UAE port of Fujairah. It had loaded an oil shipment in Abu Dhabi not long before the incident. The ship was reportedly hit with three explosions.

      Officials said it appeared the ships had been attacked with torpedoes. Another report cited officials saying three detonations had been heard.

      The Front Altair was delivering a cargo of naphtha to Taiwan refiner CPC Corp, one company official said. The cargo was supplied by Abu Dhabi’s Adnoc.

      Considering the involvement of the Japan-flagged vessel, the timing of the incident would be ironic. The suspected attacks unfolded as Japanese PM Shinzo Abe met with Iran’s Supreme Leader Ayatollah Ali Khamenei on Thursday, the second and final day of his visit, which was intended to de-escalate tensions in the region. There were no immediate details about what they discussed.

      Oil prices are popping higher on the news, as the latest replay of one of history’s most famous false-flag naval attacks, the Gulf of Tonkin incident, which helped precipitate the Vietnam war, ratchets up tensions in the region. At one point, Brent crude was up as much as 4% to over $62 a barrel.

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      At the very least, the US military will use the attack as an excuse to continue its escalation of personnel in one of the most sensitive waterways for the global oil trade. According to the EIA, 19% of all oil traded by sea passes through the Strait of Hormuz.

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      Worst case, it looks like NSA John Bolton may have just gotten the excuse he needs to justify a full-scale invasion of Iran, which we imagine will soon be confirmed as being behind the attacks.

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    Today’s News 13th June 2019

    • Marine Le Pen Ordered To Stand Trial For Re-Tweeting ISIS Atrocities

      Right-wing French politician Marine Le Pen has been ordered to stand trial for tweeting photographs of ISIS atrocities in December 2015, weeks after IS jihadis murdered 130 people in Paris.

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      A judge ruled in the Western Paris suburb of Nanterre ordered Le Pen to face a charge of circulating “violent messages that incite terrorism or pornography or seriously harm human dignity,” which included the brutal beheading of journalist James Foley, according to France24. Another depicted a man in an orange jumpsuit being run over by a tank, while a third photo Le Pen posted was of captured Jordanian air force pilot Muath Al-Kasasbeh being burned alive in a cage in January 2015. 

      “Daesh is this!” wrote Le Pen in a caption, using the terror group’s Arabic acronym. 

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      Le Pen faces a maximum sentence of three years in prison and a fine of 75,000 Euros ($85,000 US). 

      Last year, an investigative magistrate called for Le Pen to undergo psychiatric tests in connection with the IS tweets.

      The 50-year-old trained lawyer, whose party topped France’s vote in the recent European elections, has denounced the case as a violation of her freedom of expression.

      She tweeted the images after a French journalist drew a comparison between Islamic State group and her party. –France24

      Last year Le Pen, 50, was ordered to undergo a psychiatric evaluation to see if she was fit to stand trial. She has denounced the entire affair as a violation of her freedom of expression. 

      “I am being charged for having condemned the horrors of Daesh,” Le Pen said last year. “In other countries this would have earned me a medal.”

       

    • Putin Sets The Table To Leave The Dollar Behind

      Authored by Rory Hall via The Daily Coin,

      This is twice that Russian President Putin has said on the global stage the Federal Reserve Note no longer deserves the status and privilege of “world reserve currency” that allows unlimited printing of the currency.

      The first time he made mention he actually said that it was a threat to Russia’s national security.

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      In a speech at the International Economic Forum, in St. Petersburg, Russia, “Russian Davos”, President Putin reaffirmed his position regarding the Federal Reserve Note and it’s international role. For the record, we see the abuse of the Federal Reserve and the Federal Reserve Note, U.S. dollar, in similar light as President Putin. The current status of “world reserve currency” should not be allowed in this day and time. The absolute abuse of power, excessive power granted and the ability to shackle entire nations through the use of a currency that is not even their own should have never been allowed but it is way past time for this system to be dissolved.

      In a speech at a plenary session, Mr Putin accused Washington of seeking to “extend its jurisdiction to the whole world.”

      “But this model not only contradicts the logic of normal international communication. The main thing is, it does not serve the interests of the future.”

      – Source

      As recently we pointed out Russia has been and is, apparently readying, a gold backed cryptocurrency to use as global trade settlement. When a man steps up to the microphone and says to the world – “The main thing is, it (U.S. dollar) does not serve the interests of the future.” while at the same time announcing that Russia, along with China, are working on a global trade settlement mechanism outside the dollar, well, you would have to be some kind serious stupid to ignore those words.

      The Business Times also reported:

      Changes in the global economy “call for the adaptation of international financial organisations (and) rethinking the role of the dollar which… has turned into an instrument of pressure by the country of issue on the rest of the world,” Mr Putin said.

      Then went on to say:

      The Kremlin chief – whose country has chafed under numerous rounds of US sanctions – has repeatedly slammed the global financial system established by Washington in the aftermath of World War II.

      Let’s be clear about the effect of the sanctions against Russia. These sanctions that were supposed to cripple Russia have in fact made their economy stronger, more resilient and the ground work for long term growth is now in place. President Putin welcomes sanctions as he simply turns to the people and Russia, funds the next set of projects and Russia becomes a little more self sustaining. Sanctions no longer work, and the Federal Reserve, U.S. Treasury and the western allies have now been put on notice.

      *  *  *

      Brandon Smith, Founder of Alt-Market.com, had this to add…

      And so the globalist plan for a controlled demolition of the US enters the next phase, in which the dollar is abandoned by most of the world as the reserve currency mechanism and is then replaced by a new global cryptocurrency system controlled by the IMF.  Make no mistake, Russia and China’s moves to unseat the dollar are EXACTLY in line with what the globalists want.  The current trade war being pursued by Trump offers a perfect scapegoat for the end of the dollar’s dominance.  The reset is meant to take place, but the banking elites want to make sure they get none of the blame for the suffering that it will cause…

    • WTO Warns Global Trade May Plunge 17% In Full Trade War

      In the event of a full-blown trade war, global trade would collapse by 17%, a move that would rival the Dot Com bust, warned the World Trade Organization (WTO).

      Keith Rockwell, director for information and external relations at WTO, told regional Asian parliamentarians on Tuesday that the global synchronized decline is due to protectionist measures on the rise.

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      Rockwell said tariffs aren’t uncommon between trading partners, but the sheer magnitude of trade duties between the US and China since early 2018 have been disturbing.

      “Between October 2017 and October 2018, measures were put in place affecting US$588 billion worth of trade,” said Rockwell, at the event organized by the S. Rajaratnam School of International Studies (RSIS) and the WTO.

      This amount of tariffied trade comes in at seven times more than the previous year and doesn’t include the recent tariff escalation.

      Rockwell said, during the conference about international trade flows, that the WTO has reviewed 24 trade dispute settlement cases in 2018, mostly related to the deepening trade war between the US and China.

      The increased trade tensions have forced the International Monetary Fund (IMF) to slash its global growth forecast from 3.7% to 3.5%.

      “If the two sides carry through with their threats to wipe out all bilateral trade via prohibitive tariffs, this could have the impact of knocking off even more,” he added.

      Rockwell said global imports of capital goods dropped 3% in 1Q19, the lowest level seen in over three years and a warning that the global economy is cycling down through summer. “We see uncertainty rampant, we see manufacturing output stalling, and export orders are down. All of this bodes ill for economic growth,” he said.

      Roberto Azevedo, WTO director-general, also spoke at the conference and said world trade stood at 4.6% in 2017, it fell to 3% last year. In 4Q18, trade growth had the most significant drop in a decade, he said.

      “When levels of uncertainty are so high, trade simply cannot play its full role in driving GDP growth,” he added.

      “We’re working to respond to the challenges in global trade today… We’re also working to support our members in their efforts to reform the WTO.”

      The best way to visualize just how dangerous the trade war threat is to the global flow of trade, and the world economy in general, below is a chart on the year-over-year changes in global trade as measured by the IMF’s Direction of Trade Statistics, courtesy of BMO’s Ian Lyngern. It shows the absolutely collapse in global exports as broken down into three categories:

      • Exports to the world (weakest since 2009),

      • Exports to advances economies (also lowest since 2009), and

      • Exports to the European Union (challenging 2009 lows).

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      Even if the trade war is deescalated, the damage to the global economy is irreversible. The world is likely teetering on the edge of a trade recession, making the likelihood of global trade collapsing by 17% extraordinary high.

    • The Omnipresent Surveillance State: Orwell's 1984 Is No Longer Fiction

      Authored by John Whitehead via The Rutherford Institute,

      “You had to live – did live, from habit that became instinct – in the assumption that every sound you made was overheard, and, except in darkness, every movement scrutinized.” – George Orwell, 1984

      Tread cautiously: the fiction of George Orwell has become an operation manual for the omnipresent, modern-day surveillance state.

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      It’s been 70 years since Orwell – dying, beset by fever and bloody coughing fits, and driven to warn against the rise of a society in which rampant abuse of power and mass manipulation are the norm – depicted the ominous rise of ubiquitous technology, fascism and totalitarianism in 1984.

      Who could have predicted that 70 years after Orwell typed the final words to his dystopian novel, “He loved Big Brother,” we would fail to heed his warning and come to love Big Brother.

      “To the future or to the past, to a time when thought is free, when men are different from one another and do not live alone – to a time when truth exists and what is done cannot be undone: From the age of uniformity, from the age of solitude, from the age of Big Brother, from the age of doublethink – greetings!”—George Orwell

      1984 portrays a global society of total control in which people are not allowed to have thoughts that in any way disagree with the corporate state. There is no personal freedom, and advanced technology has become the driving force behind a surveillance-driven society. Snitches and cameras are everywhere. People are subject to the Thought Police, who deal with anyone guilty of thought crimes. The government, or “Party,” is headed by Big Brother who appears on posters everywhere with the words: “Big Brother is watching you.”

      We have arrived, way ahead of schedule, into the dystopian future dreamed up by not only Orwell but also such fiction writers as Aldous Huxley, Margaret Atwood and Philip K. Dick.

      “If liberty means anything at all, it means the right to tell people what they do not want to hear.” – George Orwell

      Much like Orwell’s Big Brother in 1984, the government and its corporate spies now watch our every move. Much like Huxley’s A Brave New World, we are churning out a society of watchers who “have their liberties taken away from them, but … rather enjoy it, because they [are] distracted from any desire to rebel by propaganda or brainwashing.” Much like Atwood’s The Handmaid’s Tale, the populace is now taught to “know their place and their duties, to understand that they have no real rights but will be protected up to a point if they conform, and to think so poorly of themselves that they will accept their assigned fate and not rebel or run away.”

      And in keeping with Philip K. Dick’s darkly prophetic vision of a dystopian police state—which became the basis for Steven Spielberg’s futuristic thriller Minority Report—we are now trapped in a world in which the government is all-seeing, all-knowing and all-powerful, and if you dare to step out of line, dark-clad police SWAT teams and pre-crime units will crack a few skulls to bring the populace under control.

      What once seemed futuristic no longer occupies the realm of science fiction.

      Incredibly, as the various nascent technologies employed and shared by the government and corporations alike—facial recognition, iris scanners, massive databases, behavior prediction software, and so on—are incorporated into a complex, interwoven cyber network aimed at tracking our movements, predicting our thoughts and controlling our behavior, the dystopian visions of past writers is fast becoming our reality.

      Our world is characterized by widespread surveillance, behavior prediction technologies, data mining, fusion centers, driverless cars, voice-controlled homes, facial recognition systems, cybugs and drones, and predictive policing (pre-crime) aimed at capturing would-be criminals before they can do any damage.

      Surveillance cameras are everywhere. Government agents listen in on our telephone calls and read our emails. Political correctness—a philosophy that discourages diversity—has become a guiding principle of modern society.

      “People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.” – George Orwell

      The courts have shredded the Fourth Amendment’s protections against unreasonable searches and seizures. In fact, SWAT teams battering down doors without search warrants and FBI agents acting as a secret police that investigate dissenting citizens are common occurrences in contemporary America. And bodily privacy and integrity have been utterly eviscerated by a prevailing view that Americans have no rights over what happens to their bodies during an encounter with government officials, who are allowed to search, seize, strip, scan, spy on, probe, pat down, taser, and arrest any individual at any time and for the slightest provocation.

      “The creatures outside looked from pig to man, and from man to pig, and from pig to man again; but already it was impossible to say which was which.” – George Orwell, Animal Farm

      We are increasingly ruled by multi-corporations wedded to the police state.

      What many fail to realize is that the government is not operating alone. It cannot. The government requires an accomplice. Thus, the increasingly complex security needs of the massive federal government, especially in the areas of defense, surveillance and data management, have been met within the corporate sector, which has shown itself to be a powerful ally that both depends on and feeds the growth of governmental overreach.

      In fact, Big Tech wedded to Big Government has become Big Brother, and we are now ruled by the Corporate Elite whose tentacles have spread worldwide. For example, USA Today reports that five years after the 9/11 terrorist attacks, the homeland security business was booming to such an extent that it eclipsed mature enterprises like movie-making and the music industry in annual revenue. This security spending to private corporations such as Google, Amazon, Microsoft and others is forecast to exceed $1 trillion in the near future.

      The government now has at its disposal technological arsenals so sophisticated and invasive as to render any constitutional protections null and void. Spearheaded by the NSA, which has shown itself to care little to nothing for constitutional limits or privacy, the “security/industrial complex”—a marriage of government, military and corporate interests aimed at keeping Americans under constant surveillance—has come to dominate the government and our lives. At three times the size of the CIA, constituting one third of the intelligence budget and with its own global spy network to boot, the NSA has a long history of spying on Americans, whether or not it has always had the authorization to do so.

      Money, power, control. There is no shortage of motives fueling the convergence of mega-corporations and government. But who is paying the price? The American people, of course.

      Orwell understood what many Americans, caught up in their partisan flag-waving, are still struggling to come to terms with: that there is no such thing as a government organized for the good of the people. Even the best intentions among those in government inevitably give way to the desire to maintain power and control over the citizenry at all costs. As Orwell explains:

      The Party seeks power entirely for its own sake. We are not interested in the good of others; we are interested solely in power, pure power. What pure power means you will understand presently. We are different from the oligarchies of the past in that we know what we are doing. All the others, even those who resembled ourselves, were cowards and hypocrites. The German Nazis and the Russian Communists came very close to us in their methods, but they never had the courage to recognize their own motives. They pretended, perhaps they even believed, that they had seized power unwillingly and for a limited time, and that just around the corner there lay a paradise where human beings would be free and equal. We are not like that. We know what no one ever seizes power with the intention of relinquishing it. Power is not a means; it is an end. One does not establish a dictatorship in order to safeguard a revolution; one makes the revolution in order to establish the dictatorship. The object of persecution is persecution. The object of torture is torture. The object of power is power. Now you begin to understand me.

      “The further a society drifts from truth the more it will hate those who speak it.” ― George Orwell

      How do you change the way people think? You start by changing the words they use.

      In totalitarian regimes—a.k.a. police states—where conformity and compliance are enforced at the end of a loaded gun, the government dictates what words can and cannot be used. In countries where the police state hides behind a benevolent mask and disguises itself as tolerance, the citizens censor themselves, policing their words and thoughts to conform to the dictates of the mass mind.

      Dystopian literature shows what happens when the populace is transformed into mindless automatons.

      In Ray Bradbury’s Fahrenheit 451, reading is banned and books are burned in order to suppress dissenting ideas, while televised entertainment is used to anesthetize the populace and render them easily pacified, distracted and controlled.

      In Huxley’s Brave New World, serious literature, scientific thinking and experimentation are banned as subversive, while critical thinking is discouraged through the use of conditioning, social taboos and inferior education. Likewise, expressions of individuality, independence and morality are viewed as vulgar and abnormal.

      And in Orwell’s 1984, Big Brother does away with all undesirable and unnecessary words and meanings, even going so far as to routinely rewrite history and punish “thoughtcrimes.” In this dystopian vision of the future, the Thought Police serve as the eyes and ears of Big Brother, while the Ministry of Peace deals with war and defense, the Ministry of Plenty deals with economic affairs (rationing and starvation), the Ministry of Love deals with law and order (torture and brainwashing), and the Ministry of Truth deals with news, entertainment, education and art (propaganda). The mottos of Oceania: WAR IS PEACE, FREEDOM IS SLAVERY, and IGNORANCE IS STRENGTH.

      All three—Bradbury, Huxley and Orwell—had an uncanny knack for realizing the future, yet it is Orwell who best understood the power of language to manipulate the masses. Orwell’s Big Brother relied on Newspeak to eliminate undesirable words, strip such words as remained of unorthodox meanings and make independent, non-government-approved thought altogether unnecessary. To give a single example, as psychologist Erich Fromm illustrates in his afterword to 1984:

      The word free still existed in Newspeak, but it could only be used in such statements as “This dog is free from lice” or “This field is free from weeds.” It could not be used in its old sense of “politically free” or “intellectually free,” since political and intellectual freedom no longer existed as concepts….

      Where we stand now is at the juncture of OldSpeak (where words have meanings, and ideas can be dangerous) and Newspeak (where only that which is “safe” and “accepted” by the majority is permitted). The power elite has made their intentions clear: they will pursue and prosecute any and all words, thoughts and expressions that challenge their authority.

      This is the final link in the police state chain.

      “Until they became conscious they will never rebel, and until after they have rebelled they cannot become conscious.” – George Orwell

      Americans have been conditioned to accept routine incursions on their privacy rights. In fact, the addiction to screen devices—especially cell phones—has created a hive effect where the populace not only watched but is controlled by AI bots. However, at one time, the idea of a total surveillance state tracking one’s every move would have been abhorrent to most Americans. That all changed with the 9/11 attacks. As professor Jeffrey Rosen observes, “Before Sept. 11, the idea that Americans would voluntarily agree to live their lives under the gaze of a network of biometric surveillance cameras, peering at them in government buildings, shopping malls, subways and stadiums, would have seemed unthinkable, a dystopian fantasy of a society that had surrendered privacy and anonymity.”

      Having been reduced to a cowering citizenry—mute in the face of elected officials who refuse to represent us, helpless in the face of police brutality, powerless in the face of militarized tactics and technology that treat us like enemy combatants on a battlefield, and naked in the face of government surveillance that sees and hears all—we have nowhere left to go.

      We have, so to speak, gone from being a nation where privacy is king to one where nothing is safe from the prying eyes of government. In search of so-called terrorists and extremists hiding amongst us—the proverbial “needle in a haystack,” as one official termed it—the Corporate State has taken to monitoring all aspects of our lives, from cell phone calls and emails to Internet activity and credit card transactions. Much of this data is being fed through fusion centers across the country, which work with the Department of Homeland Security to make threat assessments on every citizen, including school children. These are state and regional intelligence centers that collect data on you.

      “Big Brother is Watching You.”―George Orwell

      Wherever you go and whatever you do, you are now being watched, especially if you leave behind an electronic footprint. When you use your cell phone, you leave a record of when the call was placed, who you called, how long it lasted and even where you were at the time. When you use your ATM card, you leave a record of where and when you used the card. There is even a video camera at most locations equipped with facial recognition software. When you use a cell phone or drive a car enabled with GPS, you can be tracked by satellite. Such information is shared with government agents, including local police. And all of this once-private information about your consumer habits, your whereabouts and your activities is now being fed to the U.S. government.

      The government has nearly inexhaustible resources when it comes to tracking our movements, from electronic wiretapping devices, traffic cameras and biometrics to radio-frequency identification cards, satellites and Internet surveillance.

      Speech recognition technology now makes it possible for the government to carry out massive eavesdropping by way of sophisticated computer systems. Phone calls can be monitored, the audio converted to text files and stored in computer databases indefinitely. And if any “threatening” words are detected—no matter how inane or silly—the record can be flagged and assigned to a government agent for further investigation. Federal and state governments, again working with private corporations, monitor your Internet content. Users are profiled and tracked in order to identify, target and even prosecute them. 

      In such a climate, everyone is a suspect. And you’re guilty until you can prove yourself innocent. To underscore this shift in how the government now views its citizens, the FBI uses its wide-ranging authority to investigate individuals or groups, regardless of whether they are suspected of criminal activity. 

      “Nothing was your own except the few cubic centimetres inside your skull.” ― George Orwell

      Here’s what a lot of people fail to understand, however: it’s not just what you say or do that is being monitored, but how you think that is being tracked and targeted. We’ve already seen this play out on the state and federal level with hate crime legislation that cracks down on so-called “hateful” thoughts and expression, encourages self-censoring and reduces free debate on various subject matter. 

      Say hello to the new Thought Police.

      Total Internet surveillance by the Corporate State, as omnipresent as God, is used by the government to predict and, more importantly, control the populace, and it’s not as far-fetched as you might think. For example, the NSA is now designing an artificial intelligence system that is designed to anticipate your every move. In a nutshell, the NSA will feed vast amounts of the information it collects to a computer system known as Aquaint (the acronym stands for Advanced QUestion Answering for INTelligence), which the computer can then use to detect patterns and predict behavior.

      No information is sacred or spared.

      Everything from cell phone recordings and logs, to emails, to text messages, to personal information posted on social networking sites, to credit card statements, to library circulation records, to credit card histories, etc., is collected by the NSA and shared freely with its agents in crime: the CIA, FBI and DHS. One NSA researcher actually quit the Aquaint program, “citing concerns over the dangers in placing such a powerful weapon in the hands of a top-secret agency with little accountability.” 

      Thus, what we are witnessing, in the so-called name of security and efficiency, is the creation of a new class system comprised of the watched (average Americans such as you and me) and the watchers (government bureaucrats, technicians and private corporations).

      Clearly, the age of privacy in America is at an end.

      “If you want a picture of the future, imagine a boot stamping on a human face—for ever.”Orwell

      So where does that leave us?

      We now find ourselves in the unenviable position of being monitored, managed and controlled by our technology, which answers not to us but to our government and corporate rulers. This is the fact-is-stranger-than-fiction lesson that is being pounded into us on a daily basis.

      It won’t be long before we find ourselves looking back on the past with longing, back to an age where we could speak to whom we wanted, buy what we wanted, think what we wanted without those thoughts, words and activities being tracked, processed and stored by corporate giants such as Google, sold to government agencies such as the NSA and CIA, and used against us by militarized police with their army of futuristic technologies.

      To be an individual today, to not conform, to have even a shred of privacy, and to live beyond the reach of the government’s roaming eyes and technological spies, one must not only be a rebel but rebel.

      Even when you rebel and take your stand, there is rarely a happy ending awaiting you. You are rendered an outlaw.

      So how do you survive in the American surveillance state?

      We’re running out of options.

      As I make clear in my book Battlefield America: The War on the American People, we’ll soon have to choose between self-indulgence (the bread-and-circus distractions offered up by the news media, politicians, sports conglomerates, entertainment industry, etc.) and self-preservation in the form of renewed vigilance about threats to our freedoms and active engagement in self-governance.

      Yet as Aldous Huxley acknowledged in Brave New World Revisited:

      “Only the vigilant can maintain their liberties, and only those who are constantly and intelligently on the spot can hope to govern themselves effectively by democratic procedures. A society, most of whose members spend a great part of their time, not on the spot, not here and now and in their calculable future, but somewhere else, in the irrelevant other worlds of sport and soap opera, of mythology and metaphysical fantasy, will find it hard to resist the encroachments of those would manipulate and control it.”

    • Wealthy Millennials Are Now Moving To These States 

      According to a new SmartAsset study, wealthy millennials are moving to the coasts, but the Northeast isn’t one of them.

      To determine migration flows of wealthy millennials, SmartAsset examined data (IRS 2015 to 2016 tax year) from all 50 states and the District of Columbia. To calculate net inflow of each state, the study used inflow minus the outflow of wealthy millennials to find precisely which states wealthy millennials are moving to.

      Seventy percent of the states in the top ten list of where wealthy millennials are moving to are located on the East and West Coast. With Texas on the Gulf Coast, and Colorado and Tennessee in the Heartland.

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      Wealthy millennials are abandoning the Northeast: Five of the bottom ten states (Pennsylvania, Massachusetts, Virginia, Illinois, and New York) are located in the Northeast with some of the most significant outflows.

      About 4,900 wealthy millennials left New York during the one year, with 10,048 moved into the state, while 14,915 fled the state, for a total net migration of -4,867.

      California had the highest net migration of +3,597, was the top ranking state where wealthy millennials were migrating to. Next was Washington state; it had a net migration of +1,920. Texas was third with +1,878, and Colorado was fourth with +1,506.

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      Even less wealthy millennials, stuck in the gig-economy with insurmountable debts, aren’t flocking to New York anymore.

      A SmartAsset study from 2018 showed New York didn’t even make the top 25, but rather Seattle, Washington; Columbia, South Carolina; and Sacramento, California, were some of the top spots where non-wealthy millennials were moving to.

      For millennials as a whole, migration trends of 2020 could result in a massive exodus of Northeast states, a move that would lead to economic stress in the region as baby boomers would drain the local economy. There will be a point where states, counties, and even cities will offer some type of incentive to attract millennials. 

    • "Make Russia Prostrate Again" Is The Only Thing Democrats And Republicans Can Agree On

      Authored by Robert Bridge via The Strategic Culture Foundation,

      Despite the deep schism that separates America’s deranged political duopoly, they do share a common foreign policy pet project, and that is to prevent Russia from ever shining again on the global stage in all fields of endeavor.

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      One of Donald Trump’s main pledges on the 2016 campaign trail was to rekindle the dying embers of US-Russia relations, which had been undergoing a mini Ice Age under Barack Obama, his ballyhooed ‘reset’ notwithstanding. But before Trump was ever put to the test of romancing Russia, he was sidelined by one of the most malicious political stunts of the modern age.

      It is only necessary to recall the 2016 Winter of Our Discontent when the Democratic leader sent 35 Russian diplomats and their families packing just before New Year’s Eve in retaliation for Russia’s alleged involvement in hacking the Democratic National Committee’s computers. Before Trump ascended the throne, those unfounded claims lit the fuse on ‘Russiagate,’ the debacle which continues to undermine not just US-Russia relations, but the entire US political system.

      Yet would things have turned out any differently between Washington and Moscow had the Democrats graciously accepted defeat in 2016 without feeling the need to blame remote Russia? I am not sure.

      Today, observers reason that the US Republicans have no choice but to ‘get tough’ on Russia in an effort to dispel Democrat-generated rumors of excessive coziness with the Kremlin. Last year, for example, Trump bested Obama on the Russia front when he expelled 60 Russian diplomats in response to an alleged assassination attempt on former British spy, Sergey Skripal; an astonishing move on the part of the US conservative, but with so much riding on the line was it really a surprise?

      And what was it exactly that was ‘riding on the line’? Aside from good relations between the world’s two premier nuclear powers, not to mention thwarting nuclear Armageddon as Prime Minister Theresa May very unwisely issued an ultimatum to Russia over the matter, there is the question of hundreds of billions of dollars of business contracts – from gas supplies to military hardware. Tycoon Trump would sooner win over European gas supplies than the plains of Central Asia, for example, the geopolitical lynchpin so dear to the hearts of US policymakers, like the late Zbigniew Brzezinski. This is where so many people misread Donald Trump: His heart and mind is devoted to the business deals, not the military steals. But that doesn’t necessarily make his moves are any less dangerous.

      From President Trump’s perspective, Russia is a 500-pound cigar-chomping guy at the negotiating table with an ego and stature equal to his own that must be vanquished lest The Deal be lost and he – Donald J. Trump, CEO and Founder of The Trump Organization – look like a second-rate negotiator and fraud. Similar to the methods a belligerent globalist, Trump the inveterate businessman will do anything to achieve leverage in the pursuit of profit.

      This is where Trump was only too happy to oblige the British with their extremely suspect Skripal story because vilifying the Russians, once again, would give the US an upper hand in stealing business away from Moscow, most notably in the realm of European gas supplies. Presently, the Trump administration is trying hard to halt progress on Nord Stream 2, an ambitious 11 billion euro ($12.4 billion) project to construct a gas pipeline under the Baltic Sea from Russia to Germany.

      Speaking from Kiev this week, US Energy Secretary Rick Perry said Washington, once again endorsing the spirit of free competition and enterprise, was preparing to introduce sanctions on foreign companies involved in the project.

      But that’s just the beginning.

      To show how low the Americans would stoop to get a piece of this lucrative European market, which the Russian’s have been dutifully supplying for many decades, they’ve gone for some dramatic rebranding, calling LNG supplies “freedom gas.” You know, the byproduct of ‘freedom fries.’

      “Increasing export capacity from the Freeport LNG project is critical to spreading freedom gas throughout the world by giving America’s allies a diverse and affordable source of clean energy,” said US Under Secretary of Energy Mark W. Menezes.

      Dmitry Peskov, official spokesman of the Russian president, scoffed at such cynical attempts by Washington to strong-arm nations into accepting its preferred version of the ‘free market.’

      “Instead of fair competition they prefer to act like in Wild West times,” Peskov told RT’s Sophie Shevardnadze ahead of the St. Petersburg International Economic Forum (SPIEF). “They just show the gun and say that no, you guys here in Europe, you are going to buy our natural gas and we don’t care that it is at least 30% more expensive than the gas coming from the Russians. This is the case.”

      Perhaps nowhere else is this effort to ‘control the market’ more evident than in the realm of military spending, and particularly among NATO states. Currently, European countries spend some $240 billion annually on military weapons and forces, while Russia spends just $66 billion each year. Yet for businessmen like Trump, that is not good enough. Employing the vacuous claim of an ‘aggressive Russia,’ Trump is passing around the proverbial hat, demanding that NATO members contribute an ever-higher amount of their GDP to military spending. At the same, the eastern border with Russia has become militarized like never before.

      Here there is striking convergence on the part of the Democrats and Republicans when it comes to Russia. The Democrats under Barack Obama, accepting the baton passed to them by the Bush administration, dropped a US-made missile defense system in Romania, a stone’s throw from the Russian border. Obama’s assurances that the Russians would be allowed to participate in the project were casually forgotten. But the Russians, who know a thing or two about military strategy, did not forget.

      Last year, Vladimir Putin unveiled a number of daunting military breakthroughs, including hypersonic weapons, which the Russian leader explained were developed with the sole purpose of striking a strategic balance between the two nuclear superpowers. And if the world needs more of anything these days, it is certainly balance.

      With such ploys in mind, it is easy to see why Moscow has little cause for celebration with either a Democrat or Republican in the White House. Both political parties have long viewed Russia not as a potential partner that could lend tremendous assistance in resolving some of the planet’s most intractable problems, but rather as some Cold War foe that needs vilified and vanquished. Of course there is good reason for this decades-long duplicity. The double-pronged attack by the Democrats and Republicans allows Washington to continue to make strategic inroads against Russia, as well as China, while filling the corporate coffers at the same time.

      It is an age-old strategy – albeit a foolhardy one in an age of nuclear weapons – which is doomed to ultimate failure, if not disaster, if left unchecked.

    • Meanwhile, In Russia…

      Russian slapping competitions have become all the rage after the Siberian “Male Slapping Championships” went viral in March. 

      But who wants to see two giant men slap each other into the next dimension when you could watch smoking hot women spanking each other’s firm, supple asses instead in “The Booty Slapping Championships”? 

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      The rules are simple; take turns hitting your opponent’s ass so hard that they’re knocked off balance. 

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      Watch:

      One of the tournament’s winners was fitness blogger Anastasia Zolotaya, whose Instagram page includes video demonstrations of strict workout routines, which surely help her achieve buttocks sturdy enough withstand the flogging and win her match. –RT

       
       
       
       
       
       
       
       
       
       
       
       
       
       
       

      A post shared by Я Настя Золотая 👋🏼 (@sportnastya) on

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      Tickets to the ass-slapping event run around $6 US, while there’s no word on how much the winner takes home. 

      The spanking contest took place alongside another female competition in which women (which we presume are also smoking hot) whack each other’s bare shoulders until one of them gives up. 

    • Secrecy & Lies: How The Chernobyl Story Sheds Light On The Dangers Of America's Warfare State

      Authored by Jacob Hornberger via The Future of Freedom Foundation,

      SPOILER ALERT: If you have not yet seen the excellent HBO miniseries Chernobyl and might yet do so, you might want to wait to read this article until after you have seen the series, as it contains spoilers.

      The five-part series documents the catastrophic nuclear explosion that took place at a nuclear power plant in the Soviet Union in the 1980s, an event that threatened the lives and health of millions of people, not only in the Soviet Union but also in Europe. The series documents the heroic life-endangering efforts of thousands of people in an effort to resolve the crisis with the least amount of damage and loss of life.

      The most powerful part of the series occurs in part 5.

      Whenever power plant officials conducted tests on the system, everyone knew that there was a failsafe button in the event that everything went wrong with the test and an explosion became imminent. All that the power plant people had to do was push the failsafe button and the entire plant would come to a halt. The reason was that the button activated the introduction of control rods containing boron into the fissioning uranium, which would cause the entire system to be immediately shut down.

      To save money, Soviet officials had used graphite in the rods. In the 1970s, a Soviet nuclear scientist wrote an article stating that the graphite would serve as an accelerator, not a suppressant, of an impending nuclear explosion. He wrote that it was imperative that all the control rods be replaced immediately.

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      Soviet authorities redacted the warnings and buried the report as a national-security-state secret. Thus, when the testing at Chernobyl went out of control, the managers at the plant, who were relying on the failsafe button, had no idea what was going to happen when they pushed the failsafe button, which they did. The result was a massive ongoing and out-of-control nuclear explosion.

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      After the crisis was brought under control, the Soviets continued to maintain as much secrecy as they could, first with a secret show trial of the plant managers and then by trying to prevent any evidence of state involvement in the disaster through the use of the defective control rods and the suppression of the 1975 warnings from the nuclear scientist.

      At the trial, one of the Soviet officials responsible for resolving the crisis refused to be silenced. In his powerful testimony, he pointed out that the Soviet Union was based on two things — secrecy and lies, which was the primary cause of the disaster. For speaking the truth, he was prohibited from working again in the Soviet nuclear industry and was ostracized by Party officials. He committed suicide two years later.

      As I watched that moving scene, it occurred to me: secrecy and lies! Why, that is precisely what the U.S. government has been based on ever since it was converted into a national-security state after World War II. In fact, in many ways the U.S. national-security establishment has come to bear many of the characteristics of the Soviet Union.

      Look at how they are treating Edward Snowden, Julian Assange, and other people who have revealed the dark secrets of the deep state. They aren’t alleging that such people have lied. They are acknowledging that they revealed the truth about the national-security state. That’s why they want them punished – for revealing the truth to people.

      Edward Snowden, for example, revealed the massive illegal surveillance scheme that the NSA was conducting on the American people. He didn’t lie about. He disclosed the truth about it. That was his “crime” — speaking the truth to people about what the NSA was doing.

      On the other hand, when former Director or National Intelligence James R. Clapper, Jr. was asked by Congress whether the NSA was conducting such secret surveillance on the American people, Clapper knowingly, intentionally, and deliberately lied, under oath. Of course, when he lied to protect the secret, he never dreamed that Snowden or anyone else would reveal the truth.

      After Snowden revealed the truth, Snowden was vilified as a bad guy, while Clapper, who of course was never indicted for perjury or contempt of Congress, was celebrated as a good guy who was “keeping us safe.” While Snowden was forced to live a life of exile in Russia to avoid incarceration or execution in the United States as a “traitor,” Clapper became a popular political commentator.

      Another example: Assange revealed a secret video showing U.S. helicopter pilots committing war crimes by firing on innocent people with total indifference to the moral implications of what they were doing. The revelation resulted in criminal charges, not against the pilots but rather against Assange for disclosing what they had done.

      Consider other dark-side practices of the U.S. national-security state: Assassination. Torture. Indefinite detention. Denial of due process. Military tribunals. Coups. Sanctions and embargoes targeting innocent foreigners for the sake of political aims. Installation of and partnerships with dictatorial regimes.

      During the Cold War, if Americans were to learn that the Soviet Union, which itself was a national-security state, was engaged in any or all of those dark-side practices, no one would have been surprised. That’s how communists regimes were expected to act. The problem for Americans arises when they learn that their own national-security state is engaged in these same types of dark-side practices. Suddenly people are faced with a crisis of conscience. What do they do now? That is precisely why national-security states are based on secrecy and lies. They don’t want their citizens to be confronted with crises of conscience.

      Unfortunately, all too often the citizenry prefers to go along with the secrecy and lies. Better that they don’t know what is happening. In that way, they don’t have to deal with their consciences and then have to make discomforting and possibly dangerous choices.

      Oftentimes it’s just a lot easier and safer to keep praising the ones who are keeping the secrets and the lies and condemning those who disclose the truth.

    • Dems Push Plan To Hold Gunmakers Liable For Mass Shootings

      What’s next? Will Dems push legislation to make General Motors liable for injuries sustained from car accidents involving an ’87 Chevette? On Tuesday, Dems introduced legislation in the House and the Senate that would hold gunmakers liable for crimes involving firearms, the Daily Caller reports.

      If passed, the bill would repeal legislation passed in 2005 that enshrined protections for gun manufacturers in federal law. Unsurprisingly, California and Connecticut lawmakers appeared to be leading the charge: Adam Schiff, chairman of the House Intelligence Committee and one of President Trump’s favorite punching bags, tweeted that victims of gun violence deserve their day in court.”

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      Sen. RIchard “Da Nang Dick” Blumenthal, the Connecticut senator and fellow Trump critic, is  one of the bill’s co-sponsors. Since he’s from Connecticut, where Adam Lanza murdered 20 children at Sandy Hook Elementary School back in 2012, Blumenthal has long been one of Washington’s loudest pro-gun control voices.

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      During comments to reporters on Tuesday, he explained that the bill isn’t scapegoating gunmakers for marketing a perfectly legal product, but rather – like Schiff said before – the plan will simply give those who have been shot by deranged individuals soneone else “All we’re doing through this proposal is giving victims of gun violence their day in court,” Blumenthal, a co-sponsor of the Senate bikk, said.

       

      The NRA the NSSF (the National Shooting Sports Foundation) have loudly opposed the plan to strip the liability protections from gunmakers.

      “It’s like blaming Ford or General Motors for the negligent use of their cars,” Lawrence Keane, senior vice president of government affairs for the NSSF, told The Daily Caller News Foundation. “It is wrong to hold the gun or any other industry liable for the criminal misuse of non-defective products sold lawfully.”

      This isn’t the first time Dems have pursued their plan to cripple the American gun manufacturing industry, as the DC recounts.

      Schiff’s first measure to repeal the gun manufacturer liability protections was introduced in 2013, and has been repeated at least twice since. None of the measures passed.

      The Protection of Lawful Commerce in Arms Act, which was passed in 2005 and signed into law by former President George W. Bush  blocked civil actions against ammunition and firearm dealers, builders or trade groups over crimes involving firearms like – say – a school shooting.

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    Today’s News 12th June 2019

    • US-China Trade War Damage May Be "Irreversible"

      With the trade war between the US and China on the brink of re-escalating once more, a journalist told ABS-CBN News Philippines that damage to global supply chains from the trade war might be “irreversible.”

      President Trump threatened to slap tariffs Monday on the remaining $300 billion of Chinese exports to the US if China’s President Xi Jinping didn’t meet with him at the 2019 G20 Osaka summit on 28–29 June 2019.

      Simon Rabinovitch Asia editor for The Economist told the ABS-CBN host that economic warfare had interrupted complex global supply chains, which took several decades to construct, are now “less efficient.”

      “Even if the tariffs are reversed, the damage itself is irreversible. This is like a massive oil tanker and since it’s begun to shift direction, begun to shift course, it can’t go back to the way it used to be,”

      The global economy has experienced an “extremely long recovery” from the dark days of the 2008 financial crisis, and the business cycle tends to revert into the contraction phase every decade, he said.

      However, there’s hope; he said domestically-driven economies like the Philippines and India are “a little bit sheltered” from the global synchronized slowdown driven by the trade war.

      The best way to visualize just how serious Rabinovitch’s claim of the “irreversible” damage from the trade war is to monitor the global flow of trade. Below is a chart on YoY changes in global trade as measured by the IMF’s Direction of Trade Statistics, courtesy of BMO’s Ian Lyngern. It shows the absolutely collapse in global exports as broken down into three categories:

      • Exports to the world (weakest since 2009),
      • Exports to advances economies (also lowest since 2009), and
      • Exports to the European Union (challenging 2009 lows).

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      In short, even before President Trump slapped China with 25% on $200 billion in goods, global trade had already tumbled to levels last seen during the financial crisis depression. One can only wonder what happens to global trade after the latest escalation is filtered through the global economic system.

       

    • Turkey's New Violent Political Culture

      Authored by Burak Bekdil via The Gatestone Institute,

      • At the heart of the matter is a culture that programs most less-educated masses (and in Turkey average schooling is 6.5 years) into a) converting the “other” and, if that is not possible, b) physically hurting the “other.” A deep societal polarization since President Recep Tayyip Erdoğan’s Justice and Development Party (AKP) came to power in 2002 has widened to frightening levels.

      • After opposition leader Kemal Kılıçdaroğlu was taken to a safehouse, members of the mob surrounded it and chanted, “Let’s burn down the house!”

      • Apparently each unpunished case of political violence committed on behalf of the dominant state ideology (Islamism) and its sacrosanct leader (Erdoğan) encourages the next. In May, a journalist critical of Erdoğan’s government and its nationalist allies was hospitalized after being attacked outside his home.

      In most civilized countries, citizens go to the ballot box on election day — be it parliamentary, presidential or municipal — cast their votes, go home to watch news reporting the results and go to work the next day, some happy, some disappointed, to live in peace until the elections. Not in Turkey, where any political race looks more like warfare than simple democratic competition.

      One reason is the dominance of identity politics in the country that has its roots deep in the 1950s, when Turkey evolved into multi-party politics. The fighting between “us” and “them” goes on since then. At the heart of the matter is a culture that programs most less-educated masses (and in Turkey average schooling is 6.5 years) into a) converting the “other” and, if that is not possible, b) physically hurting the “other.” A deep societal polarization since President Recep Tayyip Erdoğan’s Justice and Development Party (AKP) came to power in 2002 has widened to frightening levels.

      None of the incidents that opposition journalists are facing today is a coincidence.

      In September 2015, for instance, an angry group of AKP fans attacked the editorial headquarters of Hürriyet, Turkey’s largest newspaper, at that time an opposition media company. Smashing the building’s windows with sticks and stones, the crowd chanted: “Allah-u aqbar” (“God is great!”) as if they were in a religious war. In fact, they thought they were in one because Hürriyet at that time was a secular newspaper critical of Erdoğan. For a long time, security forces watched the incidents with only one police team. The crowd took down the flag of the Doğan Group (which then owned Hürriyet) and burned it. After repeated demands, extra police were dispatched. The AKP Istanbul deputy and the head of the AKP youth branch, Abdürrahim Boynukalın, was in the crowd. He announced on his Twitter account, “We are protesting false news in front of Hürriyet and we are reciting the Quran for our martyrs.” It was a jihad: attacking a newspaper…

      A month later, Ahmet Hakan, a prominent Hürriyet columnist and a presenter at CNN-Türk, was outside his home. Hakan was followed home from the television station by four men in a black car before being assaulted near his residence. Hakan was treated for a broken nose and ribs. Only a few months before those incidents, Erdoğan had accused Hürriyet‘s owner of being a “coup lover” and described his journalists as “charlatans”.

      In October 2016, Turkey’s Directorate of Religious Affairs, or “Diyanet,” issued a circular for the formation of “youth branches” to be associated with the country’s tens of thousands of mosques. Initially, the youth branches would be formed in 1,500 mosques. But under the new plan, 20,000 mosques would have youth branches by 2021, and finally 45,000 mosques would have them, in what would look like “mosque militia”.

      Then there is the curious case of the Alperen Hearths, a fiercely pro-Erdoğan group that fuses pan-Turkic racism with Islamism, neo-Ottomanism, and anti-Semitism. In 2016, the Alperen threatened violence against an annual gay pride march in Istanbul. Alperen’s Istanbul chief, Kürşat Mican, said:

      “Degenerates will not be allowed to carry out their fantasies on this land…We’re not responsible for what will happen after this point … We do not want people to walk around half-naked with alcohol bottles in their hands in this sacred city watered by the blood of our ancestors.”

      The Istanbul governor’s office later banned the march.

      Another time, in 2016, Alperen members protested outside one of the most significant synagogues in Istanbul, to denounce Israel’s security measures after a deadly attack at the Temple Mount that left two Israeli police officers dead. “If you prevent our freedom of worship there [at Jerusalem’s al-Aqsa Mosque] then we will prevent your freedom of worship here [at Istanbul’s Neve Shalom Synagogue],” a statement from the Alperen said. “Our [Palestinian] brothers cannot pray there. Putting metal detectors harasses our brothers.” Some Alperen youths kicked the synagogue’s doors and others threw stones at the building.

      More recent times are not more peaceful, sadly. On March 31, when Turks went to the ballot boxes to elect their mayors, violence in one single day claimed six lives and left 115 people injured by sticks, knives, batons and gunfire. A few days later, the death toll increased.

      In a most spectacular show of violence, Erdoğan fans nearly lynched Kemal Kılıçdaroğlu, leader of the main opposition Republican People’s Party (CHP). In April, Kılıçdaroğlu went to a small town on the outskirts of Ankara to attend the funeral of a fallen soldier, killed during clashes with the separatist Kurdish militiamen. During the funeral, he was attacked by a nationalist crowd and taken to a nearby house for protection. A video of the incident on social media showed a mob pushing, shoving and punching Kılıçdaroğlu as he made his way through the crowd. After he was taken to a safehouse, members of the mob surrounded it and chanted, “Let’s burn down the house!” The man who punched the opposition leader, later happened to be an official member of AKP.

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      Pictured: Kemal Kılıçdaroğlu. (Photo by Erhan Ortac/Getty Images)

      The attacker, Osman Sarıgün, after a brief detention, was immediately released. The next day, he was a hero. Flocks of Erdoğan fans rushed to his farmhouse to kiss his hands in the Sicilian “baccio la mano” manner, paying him the utmost respect for physically attacking a leader of the opposition.

      Apparently each unpunished case of political violence committed on behalf of the dominant state ideology (Islamism) and its sacrosanct leader (Erdoğan) encourages the next. In May, a journalist critical of Erdoğan’s government and its nationalist allies was hospitalized after being attacked outside his home. The Yeniçağ newspaper said columnist Yavuz Selim Demirağ was beaten up by five or six people with baseball bats after appearing on a TV show. The assailants escaped the scene in a vehicle.

      Everything went miraculously well for Göknur Damat, a 34-year-old beauty specialist who had been diagnosed with breast cancer. In 2017, she appeared on a television show and, weeping, told the audience that her doctors said she would not live longer than six months. She won Erdoğan’s (and other people’s sympathies) and received an invitation to meet the president, who thereafter called her “my foster daughter.” She was now the darling of all AKP supporters. Her business prospered and, even better, Damat miraculously won her fight against cancer. Recently, however, she made a mistake. She donated 20 liras (approximately $3.50) to the election campaign of the opposition candidate running for mayor of Istanbul. Worse, knowledge of her donation somehow fell into the public domain, with thousands of Erdoğan fans asking, “How come our president’s foster daughter donated to the opposition campaign…” Recently, as she came out of her home, an unfamiliar man approached her, asked: “Are you that braveheart?” and stabbed her in the leg. The attacker, like most others, has not yet been found.

      Turkey never was a Denmark or Norway in political maturity, tolerance and culture but it is dangerously coming closer to being like one of its neighbors to the south or to the east.

    • #KuToo Overtakes #MeToo In Japan

      The Japanese version of the #MeToo-Movement, #KuToo, garnered international attention after a press conference and performance including the inventor of the movement, Yumi Ishikawa. Google searches for the movement, which is encouraging Japanese women to protest against workplace dress codes including mandatory heeled shoes, surged in Japan. A petition recently created by Ishikawa on change.org already has around 20,000 backers.

      Infographic: #KuToo Overtakes #MeToo in Japan | Statista

      You will find more infographics at Statista

      #KuToo is a play on the worldwide feminist movement #MeToo, which has encouraged women to speak out again workplace sexual harassment and discrimination. It also refers to the Japanese words kutsu, meaning shoe, and kutsuu, meaning pain, raising awareness for the fact that many Japanese women wear heels between five and seven centimeters high as part of their workplace uniform.

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      Ishikawa, who works at a funeral parlor part-time, is one of them. She tweeted her frustration about the fact in February and later created the hashtag #KuToo but the movement gained more traction recently in connection with actresses protesting a heel dress code at the Cannes film festival and the aforementioned performance of male Japanese workers strutting around in the heels their female colleagues are used to wearing.

    • What Comes After Trump – World War III?

      Authored by Federico Pieraccini via The Strategic Culture Foundation,

      Those who are familiar with my articles would be aware that I am not given to catastrophism or alarmism. But perhaps the time has come to reflect on who will be president after Trump (whether after this or the next term) and what this will mean for relations with Russia and China.

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      What will the United States’ relations with Russia and China be like when the 46th president of the United States takes office in 2025? This is a question that I often ask myself, especially in light of Trump’s political choices regarding international arms-control treaties (INF Treaty), nuclear proliferation, economic war with China, a financial crisis that is artificially postponed thanks to QE, out-of-control military spending, an increasingly aggressive NATOstance towards the Russian Federation, and continuous provocations against the People’s Republic of China. Where will we end up with after another five years of provocations? For how much longer will Putin and Xi Jinping maintain the “strategic patience” not to respond to Washington with drastic measures?

      Let us imagine we are in 2025

      The four current global hot spots – Iran, Syria, Venezuela and DPRK – have maintained their resistance to Washington’s diktats and have emerged more or less victorious. Syrian territory in its entirety is now under the control of Damascus; Iran has established enough deterrents not to be attacked; Pyongyang continues in its negotiations with Washington as the reunification of the two Koreas continues along; the Bolivarian revolution still lives on in Venezuela.

      Putin is preparing to leave the Russian Federation as president after 25 years. Xi Jinping could see his mandate expire in a few more years. Washington is about to appoint a new president, who in all probability will be the opposite of Trump, in the same way Obama was the opposite of Bush and Trump a reaction to Obama.

      So let us imagine someone emerging in the Democratic Party completely committed to advancing the view of the US deep state and the military-industrial complex – someone like Hillary Clinton, Madeleine Albright or any of the 2019 Democratic candidates for the 2020 elections (the ones with anything to commend them do not count). Such a person would be committed to reinvigorating the idea of American exceptionalism following eight years of a Trump presidency that has mostly focused (the neocons notwithstanding) on domestic issues and the policy of “America First”.

      Now let us think about what has been, and will be, dismantled internationally by Trump during his presidency, namely: the suspension of the INF Treaty and an indication not to extend the New START treaty (on nuclear-arms reduction), deployment of troops on the Russian border in Europe, sanctions, tariffs and economic terrorism of all kinds.

      Ask yourself how likely it is that the next US president will want and be able to improve relations with Russia and China as well as accept a multipolar world order? The answer to that is zero, with the Trump presidency only serving to remind us how every administration remains under the control of the military, industrial, spy and media apparatus, expressed in liberal and neocon ideologies.

      Trump has increased military spending considerably, singing the praises of the military-industrial complex and promising to modernize the country’s nuclear arsenal. Such a modernization would take two decades to be completed, a detail always omitted by the media. For Trump it is a case of “America First”. For the deep state the project is long term and ought to be far more alarming for the global community.

      Russia, China and the US all appear committed to further militarization, with Russia and China strongly focussing on defending their strategic interests in the face of US aggression. Beijing will focus on building a large number of aircraft carriers to defend her maritime borders, while Moscow seeks to seal her skies against missiles and stealthy aircraft (a land campaign against Russia, as history teaches us, has little chance of success).

      Experts predict that any great-power conflict in the near future may consist exclusively of conventional and/or nuclear missiles, combined with robotic technology, drones, artificial intelligence, cyber warfare, A2/ADhypersonic weapons and sabotage. In addition to nuclear weapons, the platforms from which they are launched, missiles and interceptors, a country’s computational power will be decisive, with quantum computers already a reality in China.

      The US, China and Russia will no longer have any restrictions on the production of nuclear weapons after (absent any new negotiations or agreements to extend it) the New START treaty expires in 2025. The situation regarding cyberspace and near-earth space is certainly alarming, with no explicit treaties between the great powers being in place. The few agreements in force are routinely violated, especially with regard to near-earth vehicles, as Subrata Ghoshroy informs us when discussing the US X-37B military vehicle: ‘Backdoor weaponization of space?‘:

      “Discussions about how to prevent an arms race in space started long ago; the UN Conference on Disarmament even started negotiations on a treaty, but the United States prevented it from going any further. And at the 2008 Conference on Disarmament in Geneva, China and Russia introduced an actual space arms control treaty, popularly known as the Prevention of an Arms Race in Outer Space treaty (PAROS Treaty, 2012)”

      Adding to this alarming situation is the growing US commitment to the doctrine of a preventive nuclear first strike. One wonders how much longer the world will be able to prevent itself from being bombed back to the Stone Age.

      wrote an article in 2016 dismissing the possibility of a nuclear war as absurd and impossible. But while a lot has changed in the meantime, my opinion has not. Nevertheless, I struggle to understand how such an eventuality can be avoided when the US remains on a collision course with China and Russia.

      Trump appears unwilling to go down in history as the president responsible for kicking off nuclear Armageddon. But what about the next president? The deep state in control of US politics would surely be able to place into office someone who would advance the final justification for a headlong confrontation with Moscow and Beijing.

      If you think I am exaggerating, take Pompeo, a representative of the deep state, and his recent answer to the question of whether Trump was sent by God to save Israel from Iran. “As a Christian, I certainly believe that’s possible”, he responded. If the US elects someone influenced by the messianic vision of American exceptionalism, a vision that refuses to accept the realpolitik of multiple geopolitical poles and great-power competition, then hang on to your hats, for the chances of a nuclear winter will increase dramatically. Just remember that the alternative to Trump was Hillary Clinton, who was calling for a no-fly zone in Syria – that is, for the possibility of the US shooting down Russian fighter jets!

      What would be needed if faced with such a presidency is a healthy, grass-roots internal opposition throughout Europe and the US. As things stand now, there is no longer an anti-war movement, the public disoriented by the mainstream media feeding them a constant stream of lies, misinformation and propaganda. Assange is unjustly imprisoned and Yemeni civilians are continuously bombed, and yet the media tells us that Julian works for the Kremlin, that Moscow wants to destabilize and destroy Europe, that China intends to subjugate the whole world, that Kim Jong-un is seeking the nuclearization of half of Asia, that Assad has massacred hundreds of thousands of civilians, that Saudi Arabia is a country undergoing full reform, and that al-Qaeda is fighting for freedom in Syria!

      In such a current situation, truth is malleable, able to be fashioned and shaped according to the needs and requirements of the military-industrial complex, which needs justifications for its endless wars. The situation can only get worse over the next six years, with citizens less and less able to understand the world around them. The further advances in technology will only help governments and corporations to control information and decide what is right and wrong in a process of mass lobotomization. The Internet will hardly continue to be free, and even if it were to continue in its current state, the ability to offer counter-narratives will be limited by a lack of advertising revenue to expand businesses and reach more people for independent media platforms.

      To avoid the possibility of nuclear annihilation we have to rely on the cool heads and leadership qualities of those who will succeed Vladimir Putin and Xi Jinping (it is unclear when Xi Jinping will leave office).

      Only those who assiduously keep themselves informed are able to appreciate the forbearance that the Sino-Russian leadership has and will continue to have in the face of continuing US provocations.

      But what will happen when these two even-tempered leaders are no longer in power while the means to inflict a devastating blow to the US remain available to their successors? Will the same forbearance remain in the face of ongoing US provocations?

      Moscow will be deploying all sorts of hypersonic weapons that the US cannot intercept, together with a hundred state-of-the-art Su-57 fighters. China will have about six to seven aircraft carriers, escorted by numerous destroyers, each with 112 vertical launch system (VLS) cells, hypersonic missiles, anti-satelliteand electromagnetic weapons.

      The S-500 systems will be scattered throughout Russia (and presumably also in China and Belarus), armed with hypersonic interceptors. In addition to this conventional deterrence, the current Chinese and Russian nuclear arsenal is already capable of wiping out the US in the space of a few minutes.

      Washington will continue to raise the temperature vis-a-vis China and Russia, even after Putin and Xi have left the office. It is therefore likely that their successors will come from their country’s most hawkish and intransigent wings.

      In 2025 Putin and Xi will hopefully have succeeded in avoiding a conflict with the US through the skillful employment of diplomatic, economic and often military means, playing a moderating role that stands in contrast to that played by the West, which, not understanding this approach, brands it as extremist.

      Imagine that the tensions between these three countries continues to steadily increase over the next five years at the same rate as it has over the last 10 years. How will the respective deep states of Russia and China react? Imagine in these two countries the appointment of two intransigent personalities ready to respond to US provocations.

      Washington continues its inexorable decline relative to other powers as a result of the new multipolar reality, which evens out the distribution of geopolitical weight over a wider area of the global chessboard. We must hope, for the sake of humanity, that Washington’s decline will accelerate to such an extent under the Trump presidency that the US will be forced to focus instead on its own internal problems. Reaching such a point would require the collapse of the global economy that is based on the US dollar; but this is another story altogether that could also end in bloodshed.

      Trump is appreciated by a part of the deep state for his efforts to reinvigorate Washington’s military-industrial complex by practically offering it a blank check. This is without considering Trump’s economic-financial assault on allies and enemies alike, which seems to be an attempt to squeeze the last drops out of any remaining advantage to the dollar-based system before it collapses.

      The long-term plan of the US elites sometimes seems to be to provoke a great-power conflict in order to gain victory and then construct a new global financial order atop the rubble.

      The selling of US government bonds by Russia, China and several other countries is an important indicator of global economic trends. The conversion of these securities into gold and other currencies is further confirmation of multipolarity. The IMF’s inclusion of the yuan in its basket of reserve currencies is a tangible example of the multipolar world in action and the diminishing power of the US. The sustainability of US public and private debt comes from investor confidence in US government bonds. The system hangs together through the willingness of investors to buy this trash printed by the Fed. The investors’ confidence lies not so much in the ability of the US to repay the debt but in its ability to use the most powerful military in the world to bully other countries into purchasing US securities that only serve to further fuel US imperialism.

      Moscow and Beijing’s efforts to untangle themselves from this system is the way they will deny oxygen to the economic-military threat posed by Washington.

      If the US deep state thinks it can squeeze out any last remaining benefits from the dollar system, collapse everything in a great-power conflagration, and then revive the US dollar system in a new form atop the rubble, then it is miscalculating terribly.

      If my predictions regarding technological progress between now and 2025 are correct, with quantum computing and artificial intelligence and so on, then perhaps Moscow and Beijing will be able to avert this apocalypse with the clicks of a mouse thousands of miles away. Science fiction? Possibly. But who would have been able to imagine that Bashar al-Assad’s Syria would be capable, after six years of war, to repel 90% of the latest-generation missileslaunched by Israel? Technology has a democratizing effect.

      If you think I am exaggerating, try reflecting on the fact that Washington has been at war almost every year since World War II, conducting clandestine operations in more than 50 countries and killing millions of civilians directly and indirectly, all the while having the world believe it is a blameless force for good on the side of truth and justice.

      We live in a world based on lies. Without this reality changing in the foreseeable future, with the mainstream media continuing to keep much of the population disoriented and confused, then it is not too difficult to imagine the United States by 2025 pulling the rug out from under everybody’s feet through a great-power conflict, so as to build atop the debris a new, unchallengeable Pax Americana.

    • The Future Is Here: Watch Robot Cop Pull Over Driver And Issue Ticket 

      Engineer Reuben Brewer and SRI International, a nonprofit scientific research institute based in California, developed a police robot for traffic stops. This new robot is expected to act as a buffer between the officer and motorist during an encounter, reported The Washington Post.

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      The project began several years ago in Brewer’s garage but has since been in development at SRI International’s facilities in California. The robot, dubbed GoBetween, is designed to make it safer for both the officer and the motorist.

      “The main advantage of a robot over a human is that physical danger no longer matters,” Brewer wrote after being reached by email by The Post.

      “The robot is purely defensive, so it can’t hurt the motorist. If the motorist damages the robot, it’s only money to replace it.”

      “People are more dangerous when they’re scared, so the goal is to remove the possibility of being physically hurt so that they’re less scared and less dangerous,” he added.

      When the officer pulls over a vehicle, GoBetween is deployed, which is a mechanism attached to the driver’s side of the police car, extends a rolling aluminum track to the motorist’s window with a robot at the end. At the same time, a spike strip extends from the robot and unfolds between the vehicle’s front and rear tires, stopping a potential high-speed chase.

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      GoBetween is a weaponless robot includes two video cameras, a microphone, bar-code scanner, and a speaker that allows the police officer and motorist to communicate. The car-bode scanner allows the driver to scan their license, a signature pad allows the driver to sign a ticket, and a printer provides the driver with a ticket. Brewer told The Post future prototypes will include new sensors, including a Passive Alcohol Sensor to “sniff for drunk driving.”

      Brewer pointed out GoBetween may reduce tension at traffic stops. He admitted his robot could not remove human bias from interactions between police officers and drivers.

      “Whatever inequalities there currently are with police cars pulling over minorities more often will still be there once there’s a robot on their car,” he wrote.

      “The difference is that those interactions (however unequal they may be) shouldn’t result in anyone getting hurt or killed.”

      The robot has been shown to several police departments and received an underwhelming response, Brewer said.

      Police officers across the country make more than 50,000 traffic stops per day, according to The Stanford Open Policing Project.

      In 2017, the FBI’s Uniform Crime Report showed 5,108 officers were assaulted during traffic stops and pursuits, at an average of 14 officers per day.

      Brewer said he’s working on securing a pilot test for GoBetween with a police department.

      “I’d love to have a police department test my prototype during actual traffic stops so that we can learn what its real-life limitations are,” he added.

      “It’s ready to go, just need a willing partner to test it out!”

      The policing environment of the 2020s could so much different than what is seen today. A new wave of investments in automation could alleviate some of the dangers that police officers encounter while on duty. But – with the proliferation of self-driving cars, GoBetween could one day eliminate the need for human officers patrolling the streets, in search for drivers abusing traffic laws.

    • “We Are Extremely Angry": Thousands Of Protesters Block Hong Kong Roads In Protest Against China Extradition Bill

      Two days after over 1 million people protested in the streets of Hong Kong – unsuccessfully – against a proposed extradition bill that would allow Beijing to take people from Hong Kong to stand trial in mainland China on Wednesday morning in a fresh display of defiance against the contentious extradition bill, thousands of protesters started barricading roads and began stopping traffic from accessing the HK legislature on Wednesday morning, as the government’s proposal returns to a full council meeting.

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      According to the SCMP, crowds of predominantly young people, some dressed in black and wearing face masks, dragged metal barriers and linked arms, closing off roads surrounding the government building.The protesters had arrived as early as Tuesday night, with some clashing verbally with police over the force’s heavy presence.

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      Many have skipped work or class to join, in response to numerous online calls for strikes. While the police has refused to engage so far, there were occasional reports of police using pepper spray on some protesters. Meanwhile, the numbers of protesters are expected to grow during the day after some unions called for a strike Wednesday.

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      Civic groups and organizations mobilized Tuesday, adding to small businesses and groups who called for a general strike and a school boycott to “defend Hong Kong.”

      Late Tuesday, the government restricted access to its headquarters, which also houses the legislature. Local media reported that police were planning to deploy 5,000 officers in response to expected protests. Police declined to comment on the figure.

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      As reported previously, lawmakers are due to begin debating the bill so that a vote can be held by the evening of June 20. In an unusual move Tuesday, Andrew Leung, president of Hong Kong’s mostly pro-government legislature, scheduled extra sessions for the bill to proceed more quickly than usual to a vote. Meanwhile, revealing how China has already stripped the city of its democracy, opposition lawmakers are unable to block the bill because they lost their veto power after authorities ousted several democratically elected lawmakers through court orders and barred others from running.

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      On Monday, following Sunday’s massive protests, city’s leader, Carrie Lam said she would quickly press ahead with the bill. The government has already bypassed the usual scrutiny of the new legislation by a committee of lawmakers. Amid mounting pressure and death threats, Lam has insisted that the legislation is needed to plug legal loopholes and prevent Hong Kong from becoming a haven for fugitives.

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      The proposed amendments include a mechanism for extraditions to mainland China, triggering fears in Hong Kong that Beijing could detain people in Hong Kong and try them across the border under its more opaque legal system. Mounting opposition has stirred from all corners of society, including businesspeople, lawyers and activists, who say the bill would undermine Hong Kong’s relative autonomy and independent judicial system.

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      The U.S. on Monday expressed concern that the bill, if passed, “could damage Hong Kong’s business environment and subject American citizens residing in or visiting Hong Kong to China’s capricious judicial system.” The U.S. shares the concerns of many in Hong Kong over the lack of protections for people in the proposed law, said State Department spokeswoman Morgan Ortagus.

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      In addition to the protest, a social workers union has called for a strike, with Hong Kong’s largest teachers group, which has 100,000 members, encouraging teachers to gather outside government headquarters—which also houses the legislature—and urged schools to be lenient with those who skipped classes to protest.

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      “We are extremely angry,” said Fung Wai-wah, president of the Hong Kong Professional Teachers’ Union, who called Lam arrogant for pushing ahead. “She ignores the people’s voices as if they are dirt and muck.” Naturally, the city’s Education Bureau said the calls for a school boycott were “extremely irresponsible.”

      Just as predictable, Beijing has backed Lam, with officials telling state media that foreign powers had colluded with local dissidents to cause unrest, straight out of Maduro’s playbook. According to the WSJ, the government is taking precautions to contain future protests after Sunday’s march—which had been largely peaceful—turned violent overnight with some protesters clashing with police.

    • Trump's Feud With China Is A Carbon Copy Of Reagan's Trade War With Japan: Is A New Plaza Accord Imminent?

      Name the US trade-war adversary in the following real-life scenario:

      • Trade tensions were precipitated by a large bilateral trade imbalance and a perception of an “unfair” advantage, which were exacerbated by new US administrations that pursued tax cuts even as the Federal Reserve was in tightening mode.

      • Targeted US trade actions have failed to significantly reduce the US trade imbalance with this nation

      • As the US trade deficit with this country has continued to grow, so has bipartisan political pressure to do something about it.

      • Dollar depreciation coincided with a fading fiscal boost and more accommodative monetary policy that was directionally consistent with the political aim of boosting exports.

      • Under growing bipartisan support, the US pushed this nation to take more sweeping action such as pledging to increase imports, and significantly cut its trade surplus, or potentially face a 25% tariff on all of its exports.

      If you said the nation in question is China, and the year is 2019, you are wrong (well, partially), because the events described above represent Ronald Reagan’s bilateral trade dispute with Japan in the early 1980s.

      The fact that the biggest geopolitical conflict of modern times is running off a 35-year-old script This has profound implications for not only how Trump’s own trade war with the world’s second most powerful nation will conclude, but also for the dollar, because it was against the above-described backdrop that authorities signed the historic “Plaza Accord” in 1985, and according to Goldman, a similar outcome may be coming, one which would result in “choppy dollar downside in the months ahead.”

      But let’s back up.

      As Goldman’s Michael Cahill writes today, there is never anything really new under the sun, and trade negotiations between the US and China “have so far followed a strikingly similar pattern to the bilateral US-Japan trade dispute” in the early 1980s: in both cases, talks were precipitated by a large bilateral trade imbalance and a perception of an “unfair” advantage, which were exacerbated by new US administrations that pursued tax cuts even as the Federal Reserve was in tightening mode. In another parallel, what began as trade negotiations ultimately sprawled into other areas including market access, government subsidies and currency policy.

      However, there are also important structural differences, first and foremost among them is that the US and Japan have been strategic allies for decades (and Japan depends heavily on the US for its national security), and this likely explains why Japan ultimately acquiesced to a number of US demands—including the “Plaza Accord” to dramatically strengthen its exchange rate. These differences help explain why so far the Yuan’s behavior has been very different from the Yen’s dramatic appreciation in the late 1980s, and prompt the question if Trump isn’t making a huge gamble in assuming that China will fold, just like Japan did three and a half decades ago.

      For those who were too young, or too stoned, to remember, here is a brief recap of the US-Japan trade conflict.

      In the 1970s, the US had been targeting Japanese exports of specific industries, using a “trigger price mechanism” on steel products and “voluntary export restraints” (VERs) on color TVs, which Japan introduced to avoid steep tariffs. But things intensified in the early 1980s. As a Presidential candidate, Ronald Reagan (whose chief economic advisor, Martin Feldstein passed away today at the age of 79) pitched himself as a free-trader, but said there was room for the government to be “legitimately involved” in certain industries—specifically autos—where US companies faced stiff (and potentially unfair) competition from abroad. In May 1981, Japan introduced VERs on autos to set a positive tone ahead of the Prime Minister’s trip to Washington to meet the new president. This pattern repeated itself a number of times over the next few years; bilateral talks led to a gradual reduction in Japan’s trade barriers or new restrictions on exports to the US.

      Nevertheless, in another early echo of events taking place today, the US trade deficit continued to grow, causing intense scrutiny from across the US political spectrum. At the end of Reagan’s first term (December 1984), US Trade Representative Bill Brock wrote that “it is not unreasonable to ask if we have wasted four years.” Brock said that, given the political climate, it was “vital” that Japan committed to double imports from the US and cut the bilateral trade deficit in half, or he feared things were approaching a “flash point.”

      By late summer 1985, those predictions looked prescient. As Goldman recalls, the US Congress had drafted over 200 pieces of trade-related legislation, including a prominent one that would have required Japan to reduce its trade surplus or face a 25% tariff on all exports (sound familiar?). Congress pledged to take action by mid-October unless there were clear signs of progress.

      And yet something is missing from this historical comparison: against this backdrop, global authorities signed the historic “Plaza Accord” in late September 1985, one which sent the dollar plunging over the next few years.

      Is another Plaza accord in the cards? According to Goldman, the answer is yes.

      But if Goldman is right, and the fate of the dollar and yuan are about to be thrown for a major loop, that means learned from the fate of the yen in the 1980s.

      Sure enough, in the years before the Plaza Accord, USDJPY was roughly stable against an appreciating Dollar. There were a few concentrated cases of Yen appreciation in response to lower trade barriers, such as when Japan agreed to limit export credits (effectively hiking some domestic interest rates). But, in general, the Yen did not depreciate in response to escalating trade tensions. Even in early 1985, when pressures were particularly intense, JPY depreciated less than other major currencies, according to Goldman’s Cahill who charts the value of the yen and the dollar in the chart below:

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      To be sure, it wasn’t just trade tensions that help send the dollar surging in the early 1980s: Early in the decade, the combination of tax cuts and the hawkish policies of the Federal Reserve boosted the Dollar against most trading partners: just like much of 2018.

      And just like now, growth in the US rose sharply, while growth in the rest of the world picked up only moderately.

      Later, the Fed was engaged in a cutting cycle around the time of the Plaza Accord, and the Accord’s success is widely attributed at least in part to the alignment of monetary and currency policy.

      So is a Plaza Accord 2.0 imminent, and if so, is the yuan, just like the yen, set to appreciate much higher as the dollar slides? According to Goldman, there are three reasons why the experience with the Yuan has so far been very different to that of the Yen in the 1980s, despite the obvious parallels between the two trade conflicts.

      • First, from a valuation standpoint, it was generally accepted that the Yen was exceptionally cheap before the Plaza Accord was implemented. By contrast, Goldman’s  FX strategists think CNY is only slightly undervalued at present levels, so the currency might need to react more to offset new trade barriers.

      • Second, while broad tariffs were occasionally threatened in the 1980s, the “tools of choice” were generally narrow export restrictions against specific industries. In that regime, currency moves cannot directly offset protectionist trade actions, and should be smaller due to their concentrated nature.

      • Finally, and most importantly, the US and Japan were strategic allies even during the trade conflict (especially because Japan relies on the US for military defense). While trade tensions strained the relationship at times, markets likely perceived only a small risk of serious escalation, and Japan often acquiesced to US demands (most prominently in the Plaza Accord itself).

      By contrast, the US and China are seen as chief rivals in many ways, and the strategic ties do not run nearly as deep. As a result, markets might more readily price that trade tensions will escalate and sprawl into other policy areas, and China appears less willing to accommodate US requests to change domestic policy. In addition, while Japanese companies were able to offset new trade measures by moving production to the US, Chinese companies would not be able to do this as easily because of security concerns.

      It is also is likely that Chinese policymakers might view Japan’s experience with the “lost decade” as a cautionary tale for what might happen if it makes sweeping changes too quickly, and that is setting Goldman’s trading strategy today. Taken together, China seems unlikely to be as accommodating as Japan was in the 1980s, and even speculation about potential currency agreements in the now-stalled trade negotiations fell well short of the Plaza Accord.

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      And yet, as Goldman concludes, there are a number of notable parallels between now and trade tensions in the 1980s, with several key takeaways.

      • First, the US focus on trade deficits—both then and now—is ultimately about competitiveness. The last time around, political pressure on Japan grew, and even prominent “free traders” eventually supported interventionist policies. There is evidence that this is also becoming the case today.

      • Second, while trade policies had some impact, the Dollar traded mostly with economic fundamentals. In the late 1980s, Dollar depreciation coincided with a fading fiscal boost and more accommodative monetary policy that was directionally consistent with the political aim of boosting exports.

      So while a Plaza Accord 2.0 may not be imminent – mostly because China would never concede to a treaty that Japan did in the 80s for a very specific set of reasons – Goldman believes that same environment today could result in even more FX volatility, one where the race to the bottom is not contained to an international “accord”, but a chaotic race of every man for himself, leading to “choppy Dollar downside in the months ahead.”

      One final observation: the US trade feud with Japan, and the subsequent Plaza accord, all resulted in the build up of systemic imbalances that eventually culminated with in 1987’s Black Monday. What will happen to today’s hyperfinancialized world if one Monday morning the market drops 20%, wiping out almost $20 trillion in value in minutes?

    • The FBI Tragedy: Elites Above The Law

      Authored by Victor Davis Hanson via NationalReview.com,

      After decades in the FBI, the top brass came to believe they could flout the law and pursue their own political agendas.

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      One of the media and beltway orthodoxies we constantly hear is that just a few bad apples under James Comey at the FBI explain why so many FBI elites have been fired, resigned, reassigned, demoted, or retired — or just left for unexplained reasons. The list is long and includes director James Comey himself, deputy director Andrew McCabe, counterintelligence agent Peter Strzok, attorney Lisa Page, chief of staff James Rybicki, general counsel James Baker, assistant director for public affairs Mike Kortan, Comey’s special assistant Josh Campbell, executive assistant director James Turgal, assistant director for office of congressional affairs Greg Bower, executive assistant director Michael Steinbach, and executive assistant director John Giacalone. In short, in about every growing scandal of the past two years — FISA, illegal leaking, spying on a presidential candidate, lying under oath, obstructing justice — someone in the FBI is involved.

      We are told, however, that the FBI’s culture and institutions are exempt from the widespread wrongdoing at the top. Such caution is a fine and fitting thing, given the FBI’s more than a century of public service. Nonetheless, many of those caught up in the controversies over the Russian-collusion hoax were not recent career appointees. Rather, many came up through the ranks of the FBI. And that raises the question, for example, of where exactly Peter Strzok (22 years in the FBI) learned that he had a right to interfere in a U.S. election to damage a candidate that he opposed.

      And why would an Andrew McCabe (over 21 years in the FBI) think he had the duty to formulate an “insurance policy” to take out a presidential candidate? Or why would he even consider overseeing an FBI investigation of Hillary Clinton’s improper use of emails when his wife had been a recent recipient of Clinton-related PAC money? And why would McCabe contemplate leaking confidential FBI information to the press or even dream of setting up some sort of operation to remove a sitting president under the 25th Amendment? And how did someone like the old FBI vet Peter Strozk ever end up at the center of the entire mess — opening up the snooping on the Trump campaign while hiding that fact and while briefing the candidate on Russian interference in the election, interviewing Michael Flynn, preening as a top FBI investigator for Robert Mueller’s dream team, right-hand man of “Andy” McCabe, convincing Comey to change the wording of his writ in the Clinton-email-scandal investigation, softball coddling of Huma Abedin and Cheryl Mills, instrumental in the Papadopoulos investigation con — all the while conducting an affair with fellow FBI investigator and attorney Lisa Page and bragging about his assurance that the supposedly odious Trump would be prevented from being elected. If a group of Trump zealots were to call up the FBI tomorrow and allege that a member of Joe Biden’s family has had unethical ties with the Ukrainian or Chinese government, would that gambit “alarm” the FBI enough to prompt an investigation of Biden and his campaign? How many career-professional Peter Strozks are still at the agency?

      In sum, why did so many top FBI officials, some with long experience in the FBI, exhibit such bad judgment and display such unethical behavior, characterized by arrogance, a sense of entitlement, and a belief that they were above both the law and the Constitution itself? Were they really just rogue agents, lawyers, and administrators, or are they emblematic of an FBI culture sorely gone wrong?

      How and why would James Comey believe that as a private citizen he had the right to leak classified memos of presidential conversations that he had recorded on FBI time and on FBI machines?

      Does the FBI inculcate behavior that prompts its officials to repeatedly testify under oath that they either don’t know or can’t remember – in a fashion that would earn an indictment for most similarly interrogated private citizens? Was Strozk’s testimony to the Congress emblematic of a career FBI agent in his full? Was Comey’s? Was McCabe’s?

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      To answer those questions, perhaps we can turn to an analogous example of special counsel and former FBI director Robert Mueller. We are always advised something to the effect that the admirable Vietnam War veteran and career DOJ and FBI administrator Bob Mueller has a sterling reputation, and thus we were to assume that his special-counsel investigation would be free from political bias. To suggest otherwise was to be slapped down as a rank demagogue of the worse kind.

      But how true were those beltway narratives? Mueller himself had a long checkered prosecutorial and investigative career, involving questionable decisions about the use of FBI informants in Boston, and overseeing absolutely false FBI accusations against an innocent suspect in the sensationalized anthrax case that began shortly after 9/11.

      The entire Mueller investigation did not reflect highly either on Mueller or the number of former and current DOJ and FBI personnel he brought on to his team. In a politically charged climate, Mueller foolishly hired an inordinate number of political partisans, some of whom had donated to the Clinton campaign, while others had legally defended the Clinton Foundation or various Clinton and Obama aides. Mueller’s point-man Andrew Weissman was a known Clinton zealot with his own past record of suspect prosecutorial overreach.

      Mueller did not initially disclose why FBI employees Lisa Page and Peter Strozk were taken off his investigative team, and he staggered their departures to suggest that their reassignments were normal rather than a consequence of the couple’s unprofessional personal behavior and their textual record of rank Trump hatred. Mueller’s very appointment was finessed by former FBI director and Mueller friend James Comey and was largely due to the hysteria caused by Comey’s likely felonious leaks of confidential and classified FBI memos — a fact of no interest to Mueller’s soon-to-be-expanded investigation.

      During the investigation, Mueller was quite willing to examine peripheral issues such as the scoundrelly behavior of former Trump lawyer Michael Cohen and the inside lobbying of Paul Manafort for foreign governments. Fine. But Mueller was curiously more discriminating in his non-interest in crimes far closer to the allegations of Russian collusion. That is, he was certainly uninterested about how and when the basis for his entire investigation arose — the unverified and fallacious Steele dossier that had been deliberately seeded among the FBI, CIA, and DOJ to achieve official imprimaturs so it could then be leaked to the press to ruin the campaign, transition, and presidency of Donald Trump.

      Mueller’s team also deliberately edited a phone message from Trump counsel John Dowd to Robert Kelner, General Michael Flynn’s lawyer, to make it appear incriminating and possibly unethical or illegal. Only after a federal judge ordered the full release of the transcript did the public learn the extent of Mueller’s selective and misleading cut-and-paste of Dowd’s message.

      Mueller’s own explanations about the extent to which he was guided by the precedent of presidential exemption from indictment are at odds with his own prior statements and in conflict with what Attorney General Barr has reported from a meeting with Mueller and others. In those meetings, Mueller assured that he was after the truth and did not regard prior legal opinions about the illegality of indicting a sitting president as relevant to his own investigations. But when he essentially discovered he had no finding of collusion, he then mysteriously retreated to the previously rejected notion that he was powerless to indict Trump on a possible obstruction charge.

      Mueller displayed further contortions when he recited a number of alleged Trump wrongdoings but then backed off by concluding that, while such evidence for a variety of different reasons did not justify an indictment of Trump, nonetheless Trump should not be exonerated of obstruction of justice.

      Mueller thereby established a new but lunatic precedent in American jurisprudence in which a prosecutor who fails to find sufficient cause to indict a suspect nonetheless releases supposedly incriminating evidence, with a wink that the now-besmirched suspect cannot be exonerated of the alleged crimes. Think what Mueller’s precedent of not-not-guilty would do to the American criminal-justice system, as zealous prosecutors might fish for just enough dirt on a suspect to ruin his reputation, but not find enough for an indictment, thereby exonerating their own prosecutorial failure by defaming a “guilty until proven innocent” suspect.

      It is becoming increasingly apparent that Mueller’s team knew early on in their investigation that his lead investigators Peter Strzok and Lisa Page had been correct in their belief that there was “no there there” in the charges of collusion — again the raison d’être of their entire investigation.

      Yet Mueller’s team continued the investigation, aggregating more than 200 pages of unverified or uncorroborated news accounts, online essays, and testimonies describing all sorts of alleged unethical behavior and infelicities by Trump and his associates, apparently in hopes of compiling their own version of something like the Steele dossier. Mueller sought to publish a compendium of Trump bad behavior that fell below the standard of criminal offense but that would nonetheless provide useful fodder for media sensationalism and congressional partisan efforts to impeach the now supposedly not-not guilty president.

      Note again, at no time did Muller ever investigate the Steele dossier that had helped to create his existence as special counsel, much less whether members of the FBI and DOJ had misled a FISA court by hiding critical information about the dossier to obtain wiretaps of American citizens, texts that Mueller himself would then use in his effort to find criminal culpability.

      We were told throughout the 22-month investigation that “Bob Mueller does not leak.” But almost on a weekly schedule, left-wing cable news serially announced in formulaic fashion that “the walls were closing in on” and the “noose was tightening around” Trump as another “bombshell” disclosure was anticipated, according to “sources close to the Mueller investigation,” “unnamed sources,” and “sources who chose to remain unidentified.” On one occasion, CNN reporters mysteriously showed up in advance at the home of a Mueller target, to capture on camera the arrival of paramilitary-like arresting officers.

      When it is established beyond a doubt that foreign surveillance of and contact with George Papadopoulos was used to entrap a minor Trump aide as a means of providing an ex post facto justification for the earlier illegal FBI and CIA surveillance of the Trump campaign, and when it is shown without doubt that Steele had little if any corroborating evidence for his dirty dossier, Mueller’s reputation unfortunately will be further eroded.

      Yet the question is not merely whether a Comey, McCabe, or Mueller is atypical of the FBI. Rather, where in the world, if not from the culture of the FBI, did these elite legal investigators absorb the dangerous idea that FBI lawyers and investigators could flout the law and in such arrogant fashion use their vast powers of the government to pursue their own political agendas? And why was there no internal pushback at a supercilious leadership that demonstrably had gone rogue? Certainly, the vast corpus of the Strzok-Page correspondence does reflect a unprofessional, out-of-control culture at the FBI.

      Just imagine: If an agent Peter Strozk interviewed you and overstepped his purview, would you, the aggrieved, then appeal to his boss, Andrew McCabe? And if Andrew McCabe ignored your complaint, would you, the wronged, then seek higher justice from a James Comey, who in turn might rely on a legal opinion from a Lisa Page or a brief from a James Baker? And failing that, might a Robert Mueller as an outside auditor rectify prior FBI misconduct?

      Fairly or not, the current FBI tragedy is that an American citizen should be duly worried about his constitutional rights any time he is approached by such senior FBI officials. That is not a slur on the rank and file, but the legacy of the supposed best and brightest of the agency and their distortions of the bureau’s once professional creed.

      *  *  *

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    • Not The Onion: Biden Promises To Cure Cancer If Elected

      Having promised to “make America America again,” Democratic presidential frontrunner Joe Biden decided to one-up President Trump during their dueling rallies in Iowa… though this time, we suspect “sleepy” Joe may have over-reached.

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      Not content with the usual impossible campaign promises, Biden promised to cure cancer if he’s elected…

      I’ve worked so hard in my career, that I promise you, if I’m elected president you’re gonna see the single most important thing that changes America, we’re gonna cure cancer,” Biden told a crowd in Ottumwa, Iowa on Tuesday.

      While the fight against cancer is close to Biden’s heart – his son Beau died of the disease in 2015 – the grand promise did nothing to reassure potential voters that he is more than just a flip-flopping panderer.

      Biden should know better, as RT reports, while vice president under Obama, he worked on the administration’s “Cancer Moonshot” – which was supposed to fit 10 years of “advances in cancer prevention, diagnosis and treatment” into five. While such a goal is conveniently impossible to evaluate, he would at least have learned how cancer research works, especially since he founded the Biden Cancer Initiative after leaving the White House. That he’d make such a bizarre promise despite his experience confused many on social media

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      Most recently, Biden’s sudden about-faces on the Hyde Amendment, which blocks the use of federal funds for abortions, and the US’ relationship with China:

      Biden on May 1: “China is going to eat our lunch? Come on, man…They’re not competition for us.

      Biden today: “We are in a competition with China…We need to get tough with China. They are a serious challenge to us, and in some areas a real threat.”

      …have confused voters who aren’t sure what (if anything) he stands for, spawning a new nickname from President Donald Trump: “Floppy Joe.”

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    Digest powered by RSS Digest

    Today’s News 11th June 2019

    • China's Rare Earth Monopoly Is Diminishing

      Some while ago, precious rare earths important in the production of microchips, electronics and electric motors were almost exclusively sourced in China. However, as Statista’s Katharina Buchholz points out, in recent years, several nations have picked up production again while new players entered the market, diversifying it at least to some degree.

      Infographic: China's Rare Earth Monopoly is Diminishing | Statista

      You will find more infographics at Statista

      Yet, China was still responsible for more than two thirds of global productionaccording to the U.S. Geological Survey. But as many countries are wary of depending on China, especially when it comes to technology products, countries with rare earth deposits are likely to exploit them further.

      China also has the largest know deposits of rare earths, but Brazil, Vietnam and Russia also have a lot of (largely) untapped potential in the sector.

      The United States, together with Australia, emerged as a major producer of rare earths after 2010. The country, which has produced rare earths before for military uses, got back into the market as rare earths were getting more important as a part of the implementation of crucial technologies.

    • What Exactly Did Pompeo Mean When He Vowed To "Push Back" Against Corbyn?

      Authored by Caitlin Johnstone via Medium.com,

      An audio recording from a private meeting that was leaked to The Washington Post reportedly features US Secretary of State Mike Pompeo vowing to “push back” against surging British Labour leader Jeremy Corbyn, and many are concerned that what he said sounds an awful lot like a top US official promising to interfere in the UK’s democratic process.

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      At a closed-door meeting with Jewish leaders earlier this month, one of the attendees asked Pompeo if Corbyn becomes Prime Minister, “would you be willing to work with us to take on actions if life becomes very difficult for Jews in the UK?”

      Before I get to Pompeo’s response, I should interrupt myself to note that nobody actually believes that Corbyn would make life difficult for Jews in the UK. Anyone who claims to believe this is lying. Usually when you hear people regurgitating bullshit establishment lines they’re people who are acting basically in good faith, who are only spouting bullshit because they have been propagandized. Not so in this case. The idea that a man with a lifelong history of opposing bigotry is a secret antisemite who will facilitate the persecution of Jews if given the opportunity is a completely baseless smear campaign, and everyone knows it, including those who advance it.

      The notion that Jeremy Corbyn advances antisemitism is literally just some gibberish the smear merchants made up to prevent the rise of a politician who threatens to upset existing power structures. It’s exactly as believable and exactly as legitimate as if British newspapers were constantly running headlines claiming that Corbyn is actually three children standing on each other’s shoulders inside grown-up’s clothes; the one and only difference is that they were able to make the antisemitism smear stick. Anyone who pretends to believe that Corbyn is a closet antisemite is exactly as honest and credible as someone who solemnly tells you, “I am very concerned about the fact that the Labour Party is led by a man who is secretly a cartoon mascot for a children’s breakfast cereal.”

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      So anyway, Pompeo is asked by some ridiculous twat what he’s going to do in the event of a Corbyn-led Kristallnacht, and WaPo reports on his response as follows:

      Pompeo said, “It could be that Mr. Corbyn manages to run the gauntlet and get elected. It’s possible. You should know, we won’t wait for him to do those things to begin to push back. We will do our level best,” he said to fervent applause from attendees.

      “It’s too risky and too important and too hard once it’s already happened,” he said.

      This revelation, understandably, has kicked up a fair bit of chatter in merry old England.

      “President Trump and his officials’ attempts to decide who will be Britain’s next prime minister are an entirely unacceptable interference in the UK’s democracy,” The Guardian quotes a Labour spokesperson as saying in response to the revelation.

      “STOP: The Secretary of State Mike Pompeo just promised ‘Jewish leaders’ in the United States that he would stop Jeremy Corbyn coming to power here,” tweeted former British MP George Galloway. “Is this normal now? Is this what we’ve been led to? Is this good for Jews? For Britain? Really?”

      “They did it in Latin America, Africa and Asia. Now the US government wants to overthrow democracy in Britain,” tweeted The Guardian’s George Monbiot. “Still waiting for a UK government spokesperson to express their outrage. Hello???”

      “Hmm. Hard to spin this any other way: the US secretary of state secretly promises US Jewish leaders to prevent Corbyn from becoming UK prime minister,” tweeted British journalist Jonathan Cook. “Hard too not to suspect that the US is *already* helping to ensure Corbyn doesn’t become PM. Because the obvious implication of Pompeo’s comment is that the US knows it can damage Corbyn without leaving fingerprints at the crime scene — presumably through black ops, image management etc. The elephant in the room: Why assume the US isn’t already using those techniques?”

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      It is no secret that the DC establishment considers other nations to be its personal property and has no qualms about openly working to topple the governments of nations like Venezuela and Iran, but people aren’t accustomed to hearing this sort of language directed at white, English-speaking liberal democracies. Add in the fact that this is coming from a particularly reviled administration in terms of international optics and the likely public revulsion increases. The thought that this administration may decide the direction of UK politics would be all kinds of infuriating to the average pom.

      So many questions need to be answered. Was Pompeo in fact saying that the US is intending to prevent Corbyn from becoming Prime Minister? And if so, how? What exactly does “push back” entail? Are we talking psyops and smear campaigns? Or something more? And whatever they intend to do, have they started doing it already?

      These are all questions that we should be intensely curious about. If Corbyn is able to continue to rise, we may begin seeing some increasingly overt manipulations from many places we’re not meant to be seeing them as an ailing empire fights to hold itself together in the face of increasing public discontent. The more overt the guardians of the empire are forced to be, the more they expose themselves, and the greater that public discontent may become. Our rulers are in a very complex balancing act right now, and we’d all do well to pay attention.

      *  *  *

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    • Is A Permanent Military Presence In The Persian Gulf The Only Way To Counter Iran?

      It might sound counterintuitive, but a larger military presence in a given region can actually lower the chances of a violent outbreak. It’s the concept of ‘Peace through Strength’ that’s right out of Ronald Reagan’s Cold War rhetoric and/or the movie ‘Starship Troopers’. Yet, Gen. Frank McKenzie, the head of US Central Command, who first requested the American military buildup in and around the Persian Gulf last month, has credited this strategy for warding off the unspecified “specific” Iranian threats.

      The rapid US buildup, Gen. McKenzie said, has, for now at least, stabilized the threat from Iran – though the dangers posed by Tehran remain real and an attack could be imminent. The buildup has been so successful, in fact, that we might need to increase our deployment. After decades of an expanding American military presence in the region, the Trump Administration last year started trying to slowing wind down its presence: Several Patriot missile batteries were removed from Jordan, Kuwait and Bahrain last year, and aircraft carriers, once a constant presence, were moved to an “as needed” basis.

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      And look what happened?

      “We think this is having a very good stabilizing effect,” Gen. McKenzie said regarding the deployments.

      But Gen. McKenzie is considering expanding military capabilities to ensure the U.S. has a long-term, credible deterrence force in the region. Such a move would amount to a significant reversal in the U.S. global military posture, which has shifted away from the Middle East under the Trump administration’s national security strategy, which emphasizes risks from competition with Russia and China.

      Gen. McKenzie and others, while backing the national defense strategy issued as part of the national security strategy, said the threat posed by Iran may merit adjustments.

      “We’re in the process of negotiating that,” Gen. McKenzie said, acknowledging the potential costs of a shift. “I think very carefully and long and hard before I talk about bringing additional resources into the theater. We are talking about it, but it’s going to be based on a running estimate of the situation as we go forward.”

      Even the few brushes with the Iranian IRGC have been ‘professional and uneventful’.

      Despite the heightened Iranian military activity, the country’s regular military forces and the IRGC have continued to operate professionally and the interactions at sea have been uneventful, said Adm. John Wade, commander of the Lincoln strike group.

      “Since we’ve been operating in the region, we’ve had several interactions with Iranians,” he said. “To this point, all have been safe and professional – meaning, the Iranians have done nothing to impede our maneuverability or acted in a way which required us to take defensive measures.”

      The USS Abraham Lincoln is supposed to end up in San Diego at the close of a round-the-world deployment. But who knows? If these unspecified threats aren’t resolved, the deployment in the Middle East could be permanent.

    • All Americans Have Blood On Their Hands

      Authored by Robert Scheer via TruthDig.com,

      Shortly after Truthdig columnist Danny Sjursen left the Army, where he spent 18 years on active duty and rose to the rank of major, he sat down with Editor in Chief Robert Scheer for an interview about life after the military and a discussion about the conclusions he drew throughout his military career. Sjursen, who attended West Point and did several tours in the Middle East, including Iraq and Afghanistan, opened up to Scheer about how leaving the institution where he spent most of his adult life has allowed him to finally be completely frank about his experiences, in his columns as well as in his recent book, “Ghost Riders of Baghdad: Soldiers, Civilians, and the Myth of the Surge.”

      “I’d like to think that I was always bold on active duty,” Sjursen tells Scheer in the latest installment of ‘Scheer Intelligence’, “but the reality is that I was censoring myself. You know, there is a degree of fear and harassment, and it’s very passive-aggressive stuff. But the book was a labor of love [that] tears apart the notion of American exceptionalism that brought us to Iraq, to a folly.”

      Now, as Sjursen pursues a Ph.D and a career as a writer while adapting to his new life and grappling with post-traumatic stress disorder, the former soldier is still profoundly troubled by his experiences at war, not only as he led soldiers to their deaths, but also as he watched U.S. forces devastate Iraq and Afghanistan. Although he went to Iraq thinking the trouble with the war was the way it was being fought, he left with a very different impression of the conflict.

      “What I saw happen to the Iraqi people [haunted me more] than what happened to my soldiers,” Sjursen says.

      “Not only the bodies in the street, not only the civil war that was being waged, but I found that more than 90% of the very friendly Iraqis… Sunni and Shia, they all told me that life was better under Saddam. … That was a big turning point, when I started to say, ‘Wait a second. You know, forget about fighting the war poorly; we shouldn’t be fighting this war at all.’ ”

      Recounting the many ways the U.S. created worse conditions for Iraqis after the death of Saddam, Sjursen explains that the nearly half a million Iraqis who have died since the early 2000s were not killed directly by American soldiers, but by the unleashing of a “Pandora’s box of sectarian civil war in what was once a secular society.” The war in Afghanistan, while fought under different pretenses, was no less brutal or foolish than the Iraq War, in Sjursen’s eyes.

      The reality is, any chance of victory in Afghanistan was over the minute – and this only took weeks – the minute after we switched from a counterterrorism strategy, a surgical, law enforcement-type attack on the al-Qaida system – the minute we switched from that to nation-building, counterinsurgency and occupation, the war was already lost.

      But the blood on Sjursen’s hands, which he remains conscious of long after his last deployment, is on all Americans’ hands, as the Truthdig columnist points out. And with no end in sight to what have been dubbed our “forever wars,” it’s unlikely we’ll be able to wash our hands clean of these ongoing tragedies any time soon.

      Listen to Sjursen and Scheer as they talk about everything from WikiLeaks to the accumulating failures of America’s leaders, at home and abroad. You can also read a transcript of the interview below the media player and find past episodes of “Scheer Intelligence” here.

      -Introduction by Natasha Hakimi Zapata

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      Robert Scheer: Hi, this is Robert Scheer with another edition of “Scheer Intelligence,” where the intelligence comes from my guests. In this case, it’s someone–this is sort of the second part of an interview that began, oh, months ago, when Major Danny Sjursen was active duty in the Army. And he had spent 18 years of his life, ever since signing up at West Point–being admitted at West Point, a kid from Staten Island, a basically poor, working-class background. A lot of firemen and cops in his community and family. And affected by 9/11, the attack on the World Trade Center. But he went to West Point before 9/11. And people just thought, well, you know, god, they’re letting poor kids in there now, because the congressmen and the bankers, they don’t want their children to grow up to be lieutenants or even majors; he became a major eventually. So the military academy is actually more merit-based now than it might have once been. And so welcome, Major Sjursen. How are you?

      Danny Sjursen: Oh, I’m great. Thanks for having me again, Bob.

      RS: OK. And the reason I wanted to talk to you today is that, first of all, it’s two months now since you’ve been an active duty major. It’s something you’ve done, I’m sure, your whole life, adult life. And you were a lieutenant, you were in Iraq for a year and a half or so; you were in Afghanistan, and you were deployed other times. How many times were you deployed?

      DS: Ah, just two combat deployments and then some short tours for–

      RS: Yeah, but in many other countries and so forth–

      DS: Of course, yeah, absolutely.

      RS: And you’re a father of two children; you’ve had an interesting life. And you wrote a book about the surge in Iraq called “Ghost Riders of Baghdad: Soldiers, Civilians, and the Myth of the Surge.” And it’s a really terrific book that people can get, if they want to go online or find some bookstore that has it. And what it really—you know, I was going to start with something from the book, and you can help me here. It was a quote from Graham Greene: “Innocence is a kind of insanity.” Graham Greene, the great writer, great novelist. And he wrote “The Quiet American,” which is about innocence as a form of [insanity], how we got involved in Vietnam. And your book is really an unmasking of the conceit of innocence. Somehow Americans go off to war, they’re always intending to do good, they’re always going to make it a better world. And generally, they screw it up horribly, with very few rare exceptions. And that’s really the thesis here, isn’t it? And so why don’t you give us that overall view. And are you bolder in that view now that you’re not active duty, that you’re out of the military for the first time in 18 years? How does it feel?

      DS: It feels good. I’d like to think that I was always bold on active duty, but the reality is that I was censoring myself. You know, there is a degree of fear and harassment, you know, and it’s very passive-aggressive stuff. But you know, the book was a labor of love. It started out as an essay, an angry essay that I wrote to Senator Lindsey Graham because I didn’t like something he said on C-SPAN, and it became a book. But you’re right that there are sort of the—the theme of innocence runs through it. And it’s two tracks; it’s my own innocence as someone who was, you know, naive enough to believe not only that the Iraq War might be valuable and necessary, but also that the military was just ultimately a force for good in the world. But the other innocence is a collective, national innocence. Only such a collective, national innocence that borders on insanity, as the quote says, could have allowed us to invade Iraq. Probably the catastrophic blunder of the 21st century, if not even larger than that. And I don’t even think we understand the scale of what a disaster we’ve created, because the aftershocks are–they’re sometimes worse than the initial earthquake. And we haven’t seen the last of it. So the book is an unmasking of my own innocence, which very quickly was rattled. By my third or fourth month in Iraq, I was anti-war. I mean, I was posting anti-war poems from World War I on the door to my room in Iraq, you know, provocatively. My little protest, you know, before I was told to pull them down. But you know, that’s what the book does. It tears apart the notion of American exceptionalism that brought us to Iraq, to a folly.

      RS: The day that Julian Assange was arrested, you know, in the Ecuadorian Embassy, and they hauled him out of there. And you know, he’s been charged, and the charge is conspiring to commit computer intrusion. And what they’re doing is basically getting him on something they think they can nail him on; they don’t want to, this is his helping Bradley Manning, now known as Chelsea Manning, and be able to crack a computer code preventing entry into some data trove. But they didn’t—but at that moment in time, Bradley Manning had already released a million documents. They were fairly low-level secrecy; you can discuss that. But really, very revealing information, unquestionably, in my mind, that the public had a right to know, and a need—a need to know. Including how we shot up civilians, and so forth. And one reason why I wanted particularly to do this interview with you today is, you know, when people release these secrets, they’re always told they’re putting the troops in harm’s way. And you’re not, you’re dishonoring and threatening the troops. Well, you were a young lieutenant at that point, or had been a few years before. You were involved in the surge. And the documents that Chelsea Manning released really affected the kinds of activities you were in. You were in constant patrol in Baghdad, one end to the other, with your unit of what, 20 soldiers?

      DS: Yeah, give or take, 20 soldiers.

      RS: Half of whom ended up being killed or seriously injured, some of whom committed suicide. And I want to ask you, as the grunt on the ground—now, you were a lieutenant; you were a West Point graduate. You end up later in life teaching at West Point; you end up being a major before your retirement two months ago. But what did you think about that release of documents by Manning through WikiLeaks?

      DS: You know, I had a very provocative view of it, in the sense that I thought it was a national service that he’d, you know, that he’d committed. My peers were horrified. They believed the myth that the troops were put in harm’s way by what he released, which was patently false. The people who were doing harm to the troops were the people who were lying, the people who were creating the secrecy. That’s what damaged the troops: the people that brought us to Iraq. One of the things that was most staggering for me was, in that million documents that then-Bradley Manning released, what there was was this evidence that we, the soldiers on the ground, knew that we were policing an internal, sectarian civil war. So in 2006 and ’07, dozens and sometimes hundreds of civilians would kill one another, right? Sunni versus Shia, in the middle of the night. And in the morning, we would gather the bodies and count them and report them. But that was all classified, at a low level; just secret, not top secret or anything. But at the same time that was going on, when we were using the words “civil war,” when we were witnessing a civil war, our leaders–General Casey, who was at the time the commander of multinational forces in Iraq, and senior defense officials, Rumsfeld, et cetera—they were telling the press, no, it’s not a civil war. We won’t use the words “civil war.” And I think largely that’s because they did not want to admit to the chaos that had broken out, that we had lost control, if we ever had it. That we had patently, forever, lost control of Baghdad. And of, really, the whole country, but especially the capital city. And you know, I was offended by that lie, because I lived the civil war. You know, I lived the multipronged war, where they were both attacking us and attacking each other. And that the country was both literally and figuratively on fire in late 2006, and I was offended by the lie. And I thought it was a brave decision. And, of course, whistleblowers were out of fashion, as you said earlier today, Bob. And obviously, he was crucified–she–and was given a 30-year sentence. And my peers thought that was just about right. Some of them thought, you know, she should have been executed.

      RS: “She” being Chelsea Manning. And Julian Assange published these documents. And Washington Post, The Guardian, the British paper, papers all over the world, printed them. And interestingly enough, Julian Assange is not in the position that Daniel Ellsberg was in when he released the Pentagon Papers, a trove of—a history study, really; you’re a historian, I should point out you’re about to get your doctorate. The military sent you to graduate school in preparation of being an instructor at West Point. And now you’re at the end of your dissertation, and will be doctor, Dr. Danny Sjursen, in a couple of months. And the really interesting thing here is who controls history, who controls knowledge, who controls truth and true news? And fake news is really, in a way, the norm, it seems to me, if we talk about Vietnam, we talk about Iraq, and so forth. And without the whistleblowers, we don’t even get a crack—a crack there where the light can come through. But you were on the ground, and when you talk about it being—I mean, look, after all, we had supposedly gone to Iraq to find weapons of mass destruction; that was a lie. And it was a lie that Saddam Hussein had anything to do with 9/11; he didn’t. You know, and another lie is that somehow this was a backward country with no redeeming virtue–well, we managed to make it a far more unlivable, miserable country than it had ever been. Why don’t you talk—you got an education there. And now you’re in this, even though you’re going to be Dr. Danny Sjursen, you hopefully will be successful as a writer about history and a professor. And you, you know, you’re honorably discharged as a major from the military. But you’re a deeply troubled person by what you saw and experienced. Why don’t you—I mean, tell us the consequence, not just for you, but also for the Iraqi people.

      DS: You know, I got there with just a little bit of idealism left. I had read Thomas Ricks’ “Fiasco,” so I was aware of the failures early in the war. But I think, at the time, I was in the mainstream of military officers, in the sense that I thought the war was being fought poorly, but I did not necessarily think that the war was wrong in itself. And, of course, I quickly came to believe that it was. And the best way, Bob, to talk about it is, you know, what I saw happen to the Iraqi people. Because more, believe it or not, than what happened to my soldiers, that haunted me. Not only the bodies in the street, not only the civil war that was being waged, but I found that more than 90% of the very friendly Iraqis–not attacking us, as far as I knew, you know; talking to me, drinking chai with me, thousands of them. And they all started telling me—Sunni and Shia, OK, and Saddam had been pretty brutal to the Shia—but Sunni and Shia, they all told me that life was better under Saddam. And they would say, we like you just fine; you’re a nice guy. But we want you out of here. I mean, look what you’ve done. You know, this is why we can’t have nice things. I mean, they really thought we had destroyed their country. Because we had. We had. So for me, that was a big turning point, when I started to say, “Wait a second. You know, forget about fighting the war poorly; we shouldn’t be fighting this war at all.” We’ve brought disaster–to the tune, now, most estimates, half a million dead, right. Mostly civilians, in Iraq. Did we—you know, we didn’t directly kill all of them. But we unleashed the Pandora’s box of sectarian civil war in what was once a secular society. Men and women holding hands, drinking in cafes—that’s all over with now. People get their heads cut off for less. That really shocked me. And then, of course, there was the idealism of my soldiers, who, you know, they were just fighting for each other, as the cliché goes. But it’s true.

      RS: A serious student of the course—are we not up against the incompatibility of empire and republic? We were founded as a republic. As a historian, you know, we began to betray that promise from the day of our founding, or even before, when we were striving to be an independent country. What about this tension? Where are we now in empire land? And isn’t, really, this what the whistleblowers have been revealing, the consequence of empire?

      DS: There are precious few whistleblowers about military issues, as you mentioned. And that is a shame, because what Julian Assange, WikiLeaks, and Chelsea Manning should be is a splash of cold water, a bucket of cold water, on the face of the collective American people. And yet it’s not, for the most part. We’re willing to accept what our military does in our name. We’re willing to accept that the United States has a system where the president is essentially a dictator in foreign policy. You’re right that it’s the only institution where we do not, you know, expect whistleblowers to provide that check, that truth that you mentioned. And it’s very, very disturbing. The bottom line is, you know, from a historical perspective, to answer your question, we are—we are long, long down the road of this empire. I mean, absolutely, far down that road. The republic, the ostensible republic, is dying. And empires tend, not only does it not end well when the empire comes home—as it always does; the empire always comes home, Britain, Rome, you name it. These countries on the way out, on the decline, that’s when they act the most absurd. Things go really poorly. They do not behave well. And what you’re looking at today is a United States of America that is not behaving well in the world, because it is in, you know, the twilight of its empire. And it may take a long time before the empire collapses, but in the interim, we are going to act poorly. And as long as we have an all-volunteer force, as long as a, you know, a select half of a percent—the other 1%, as I like to call them. As long as we give it out to a military caste, and it doesn’t Main Street, especially in the wealthy communities, then this will continue indefinitely, and America will continue to behave badly, as the empires often historically do.

      RS: In what sense are we an empire? Because some people think, “Oh, you’re just throwing around rhetoric.” Now, we do happen to live in a time when more people are open to the possibility that something has gone awry, because Donald Trump is president, and he has the aura of an emperor. And, you know, the whole notion of, his notion of American greatness is a notion of power over others, and being able to dictate and fire lesser people, and dictate the terms of agreements, and they’ll do this, they’ll pay for the wall, these Mexicans, and the Chinese will bow to our will, and et cetera, et cetera. So we actually have an [emperor], but most people blame that on Julian Assange, or many people do, or on WikiLeaks, or something. They don’t seem to want to come to grips with the idea that maybe, maybe Trump is the man for the time of empire. And this is what emperors do, and sometimes they’re a little bit wacky, and sometimes they’re a little bit out of control, or more so. In what sense are we—you’re a historian; in what sense is this accurate labeling?

      DS: You know, we—we are an empire. And I’m going to explain why, and then I’m going to talk about Trump a little. I have a complex relationship with my old commander in chief, my old chum. You know, we have 800 military bases in 80 countries; on any given day, we are bombing at least seven countries, some days more, if there’s something going on in Africa. We have a defense budget as large as the next seven countries’ combined. We have, you know, the majority of the world’s aircraft carriers, 10 times more than the Russians and the Chinese. We have divided the planet into regional commands—CENTCOM, Northcom, Southcom—where our four-star generals in charge of these commands are essentially Roman proconsuls, right? Ruling over—and much more powerful than our diplomats. Our diplomats are not taken seriously anymore; it’s the military that gets the business done. And you know, finally, we are unique. We are exceptional. Exceptional in the sense that we are the most imperial of all the places on the planet. Because there are 77 total foreign bases split between all the other 200 countries of the world, and we have some 800. So yes, certainly, we’re are an empire, by any stretch of the imagination. Now, our people, ironically, like to think we’re not. But you’re right that people are becoming a little more open to that. Now, Trump is—I think you’re correct—the reason why people are starting to accept that we might be an empire. But I would argue that Trump is not such an anomaly. He is a man for his times. You know, the question you have to ask in America, when it comes to the popularity contest that we call the presidential election every four years—that entertaining bit, right, of the blue team and the red team–you have two choices. And you will always have two choices. And the choice in the two major parties is between, do you like coarse emperors? Do you want your empire to be coarse and absurd and a little bit buffoonish? Or do you like your empire and your emperors to be polite? Because Barack Obama and Hillary Clinton would have been polite emperors. But the reality is, if anything, Donald Trump questions the empire at times—doesn’t always follow through—more than a Barack Obama, more than a Hillary Clinton or a George W. Bush or a Bill Clinton, for that matter. I mean, the question is not whether we’re an empire; it’s how do you like your imperialism? And you have two choices. Well, “liberal,” in quotes, society prefers polite emperors. And so they try to get them elected, and they can’t accept that a coarse emperor, like Donald Trump, is currently in charge.

      RS: Well, one of those polite emperors was Lyndon Johnson. In fact, most of the more aggressive emperors have been Democrats, but put that aside for a minute. And then you’re raising an interesting question: Is this debate really over manners? Because, after all, Lyndon Johnson—and then came Richard Nixon—but together, I think a conservative figure would be that 4 or 5 million people lost their lives. Maybe more, certainly whole societies were disrupted. Certainly Barack Obama, to take the most pleasant of our emperors, if we’re going to use that language, you know, every morning would decide who to fire a drone attack on. Maybe it’s a wedding, maybe it’s a family living somewhere. And you served, in your 18 years in the military, under mild-mannered emperors and under more aggressive and buffoonish emperors. What was the difference on the ground?

      DS: There was almost none. Certainly under George W. Bush we pursued more conventional military means. So there were more soldiers on the ground; there were more tours, right. Because there was more people there, therefore you deployed slightly more often. But what we were doing—

      RS: But not as much as under Lyndon Johnson.

      DS: No, no. By no means as much as under Lyndon Johnson. And of course, in reality, what we were doing on the ground was precisely the same. I mean, we were bringing instability, and we were dealing death. Usually from above, with the polite people like, you know, Barack Obama. He preferred the, you know, that killing. And it’s a myth. I mean, the myth that this is somehow a controlled killing, it’s precision-guided—of course, it’s not, it never is, and it probably never will be. But the big answer to your question is, very little changed on the ground for those of us carrying water for the empire, whether we had George W. Bush or Barack Obama or even Donald Trump.

      RS: Well, spell that out, because most of us are not on the ground. In my own situation as a journalist, I’ve been parachuted into a few war zones, and can sense the mayhem. And some of my colleagues stayed much longer; I’m not going to take that away from them. But still, we are voyeurs to violence. You were dealing violence, right? And you were receiving, on the receiving end of violence. You know, this is not a video game. Most of us accept war as a video game now. The [thing] about the drone attacks, we see somebody in Omaha killing somebody in Baghdad or someplace, and we assume they’re accurate, we assume they know what they’re doing. That’s what Barack Obama did, right? He approved every one of those. What’s the reality on the ground?

      DS: The reality on the ground is much different. It’s much more brutal, it’s much more of what you’d expect of a conventional war. I’ll give you one really good example that I think demonstrates this. During the, quote, surge in Iraq of 2007, when we put all these extra soldiers on the ground, and we flooded the neighborhoods, and we lived among the Iraqis, and we fought every day, and we received and dealt violence—you know, that was a George W. Bush thing. And many of us, like myself, were naive enough to believe that when a Democrat won—and I liked Obama at the time—that it would change. That we would no longer think that we can fix these societies, and unzip the American inside every Arab, or inside every Afghan–that that would change. But it did not. Because Barack Obama applied that very same model to Afghanistan, and we had ourselves a surge there. This was the Obama surge. And the reality is, the figures leading these surges didn’t change at all. Because Petraeus was the commander of both surges, at least after Stanley McChrystal was fired. So it’s the same folks doing the same things, going on the same inane patrols, trying to secure or pacify or win the hearts and minds–you pick. But it usually means use violence in order to convert them to our way of life, or whatever we perceive to be our way of life. And unlock the American inside each of them. So no, it didn’t change very much at all. Barack Obama’s surge in Afghanistan was equally as brutal and equally as wasteful as George W. Bush’s. And if we are to have another surge, and it’s the favorite tool now of generals, you can be sure that under Donald Trump, or Hillary Clinton, if she had won, it’ll be largely the same.

      RS: So you—we haven’t talked much about Afghanistan. Iraq made no sense whatsoever. But the argument somehow, because we—9/11 had been launched at least logistically from Afghanistan, the planes that flew into the World Trade Center—that that was defensible. And we have an image—in order to do all this, the mannered style requires, you know, that the enemy be defined as thoroughly loathsome. Another Hitler, in the case of Saddam Hussein; the analogies have to be there so there’s no possibility of negotiation. The irony in Afghanistan, where you spent quite a bit of time in a very dangerous situation, is we’re actually now—Donald Trump, amazingly, is accepting, negotiating with the Taliban. Something that could have been done, you know, weeks after 9/11. I mean, you know, who are these Taliban? What was the—how did they get there, how did fanaticism come to Afghanistan, which was not a center of Islamic fanaticism? Mostly paid for by Saudi Arabia; 15 of the hijackers were traveling on legal papers from Saudi Arabia. You know, so suddenly—wait a minute, we can talk to the Taliban? You had a lot of familiarity. What was Afghanistan all about?

      DS: Well, Afghanistan is, you know, what Barack Obama called the “good” war. Remember, he was selling us the idea during the campaign in 2007 and ’08, that there’s a bad war—the stupid war, in Iraq—and then there’s the good war, the one that we have to win. The reality is any chance of victory in Afghanistan was over the minute—and this only took weeks—the minute after we switched from a counterterrorism strategy, a surgical, law enforcement-type attack on the al-Qaida system—the minute we switched from that to nation-building, counterinsurgency and occupation, the war was already lost. And you’re right that it’s going to end—I promise you, it is going to end with a negotiated settlement, and the Taliban will still have their guns and will still be a force of essentially militiamen. And they might take over half the country, or maybe the whole thing. And you’re right that that could have, that negotiation could have been done from a position of more strength, mind you, in December of ’01, or in February of ’02. And we would have had the same thing. And you know, this happened in Vietnam as well; Richard Nixon prolongs the war for four or five years, and then he actually accepts terms that are about the same that were on offer from the North Vietnamese, you know, in January of 1969. Now, in the interim, I think the number, if I’m not mistaken, is 20,532 American soldiers died, more than a third of our casualties coming after it was no longer necessary, if it ever was. The same has happened in Afghanistan. In this case, 95 to 98% of the Americans who died, and an equal number of Afghans, who we often forget about, died after that moment when the war was no longer winnable. And the war will end with those same terms that would have been on offer, maybe even better terms would have been on offer when the Taliban had first been knocked out of power. And that’s the ultimate tragedy of this, is that everyone who died in the interim, that blood is very specifically on our hands.

      RS: I want to end this on a point you may not agree with. But it’s I guess sort of the main, [Laughs] maybe the only significant—and I don’t know why I’m laughing, because I took some risks to learn this; I went to some dangerous areas. Not like you, for 18 years, but. And what came to me was an overwhelming sense of the stupidity of the very smart people who were in charge. Whether I was sitting at some high-ranking diplomat’s house; whether I was talking to a general who had also, not always had a Ph.D, but a good education. Basically, I was talking to people—Halberstam captured it with the title, “The Best and the Brightest”—who could present well. Again, manners; they weren’t buffoons, they were reasonable, and so forth. And yet, when I would have these conversations, it was informed by an idiocy, an unawareness. So, for example, in Vietnam, they would talk about the people, and I would say, “But the guy you put in power here–it wasn’t just ’69 they could have had peace.” They could have had peace with Ho Chi Minh after the Second World War, when he quoted the U.S. Declaration of Independence and was a nationalist who wanted—they could have had peace when he defeated the French. No! We picked a Roman Catholic from New York state, who was in a monastery in New York state, Vietnamese refugee, and we said he’s going to be the George Washington of his country. Ignoring the fact that the Catholics, who had been brought in by French colonial education, represented only 10% of the country. This is what Graham Greene wrote about. So, stupidity, you know. And then you look at the whole course of it, and a myth that somehow this is an extension of communism and China and—it wasn’t anything of the sort. We lose the war, and the Vietnamese communists and Chinese communists go to war with each other. OK? And now they’re going to war to fill the shelves of Costco or Walmart with different products. And something very similar happened in Iraq, happened in Afghanistan. It’s the same kind of, you know—we honor these leaders of our military as—and you taught at West Point. That’s why I’m putting the question to you. And you’re a very smart guy, you know, and yet, why don’t they learn from this? And my own explanation is because they’re not subject to a critical environment. And they’re not held accountable. And I’m bringing it back to Chelsea Manning and Julian Assange. When we get these documents, like the Pentagon Papers that Daniel Ellsberg released, we realize if they only read their own memos, if they only talked honestly to each other, they would know this. There wasn’t—everything they had to know was in the Pentagon Papers. Their own document. Right? And what we’ve learned from the WikiLeaks—if they would just have studied what Chelsea Manning, Bradley Manning released through Julian Assange, and just read those things—that were published in newspapers, Washington Post, The Guardian—they would have known, they would know how idiotic the whole enterprise is. So when you were brought back to West Point, and when you were sent by the Army to go get your doctorate, you’re an intelligent guy, you’ve paid your dues, they had you marked to be a general, you made it up to be a major. What happened when you tried to speak in reasonable terms to these fellow officers? And I know you just came from a conference a few weeks ago where there were some at least two-star generals, and important colonels. What is it like talking to them?

      DS: You know, the best and the brightest have failed us again. And I’m glad that you used that term. The reality is that most of the general officers and most of the colonels are not in a critical environment; they’re not in an environment that, you know, wants dissent or wants critical thinking. I mean, they’re surrounded in a bubble by sycophants. I mean, that’s how they are raised up through the ranks in the Army; they don’t get a lot of criticism from above, below or laterally. It’s a very hierarchical structure. And it is stupidity. I mean, flat-out. The truncated nature of their thinking, I mean, it’s so narrow. And it is almost childish. I mean, their view of Islamism as the new communism, which is the new Nazism—I mean, that sort of thinking, it’s absolutely, it’s ludicrous. And yet it’s the, it’s the norm, right, it’s the consensus among the people that I served with, and among the policymakers, who are often worse, often more hawkish. You know, the “chicken hawks” like John Bolton. But they have failed you again, and they will fail you in the future. And there are very, very few critical-thinking officers who are able to get outside of that box and say, “The question isn’t are we doing this well, the question is should it be done at all—can it be done at all?” And if the answer is no, it’s time to speak up. And it’s time to give your military advice, and if necessary, resign.

      RS: And, well, you’re no longer in the military. I don’t know where the next Danny Sjursen’s going to come from. But if you want to really have a sense of what it’s like to be on the ground in one of these wars that we treat as video games—and most of us, because we don’t have a draft, don’t really have to think about it, even though the country is being bankrupted by it. And we often commit genocide, war crimes and what have you. That’s what Julian Assange, for my money, revealed, and Bradley Manning. Check out the book, “Ghost Riders of Baghdad: Soldiers, Civilians, and the Myth of the Surge.” Because the surge is held up, and will be held up in Afghanistan and so forth, as the saving grace. And then people like Barack Obama were criticized because they didn’t have another surge, or didn’t do more killing on that level. And check it out. Danny Sjursen, I want to thank you for doing this. It’s—it’s just so, to me, so depressing that there’s like 15 truth-tellers that we’ve had about our wars, from Daniel Ellsberg up to Danny Sjursen. You got to ask yourself some tough questions about why we, the citizens of this modern Rome, with a great deal of freedom and a great deal of arrogance about our power as individuals, are letting the empire drag us into these disasters and ultimately destroy the republic. But that’s it for this edition of “Scheer Intelligence.” Our engineers at KCRW in Santa Monica are Mario Diaz and Kat Yore. Joshua Scheer is the producer of this show. And a special shout-out to Sebastian Grubaugh, the brilliant sound engineer here at the Annenberg School for Communication and Journalism, who holds this whole thing together. And you know, yes, we have General Petraeus on the faculty, but we also heard from [Major] Danny Sjursen, presenting a very different view than that of Petraeus. So let it go at that, see you next week.

    • Iran Calls For 'Elimination' Of Dollar To Stop US 'Economic Terrorism' 

      Iranian Foreign Minister Mohammad Javad Zarif said on Sunday that America’s economic influence would be eliminated if countries halt the use of dollars in their international transactions, reported Sputnik.

      “America’s power rests on the dollar; a great part of America’s economic power will go away if countries eliminate the dollar from their economic systems,” Zarif said at a school even in Tehran.

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      President Trump has waged economic warfare on Iran ever since Washington withdrew from the Joint Comprehensive Plan of Action (Iran nuclear deal). Washington has forced Iran’s trade partners, who use dollars, to halt trade with Iran.

      “It amounts, by definition, to economic terrorism because the US is putting pressure in terms of what its president calls warfare on normal ordinary Iranians in order to change the policies of their government,” he told reporters.

      Zarif isn’t the only senior official in the world who has spoken about to dollar’s demise; we reported last Wednseday that Russia and China are set to sign an agreement which would boost the use of their national currencies in bilateral and international trade, in an attempt to move away from the dollar.

      “It is planned that Russia and China will be developing bilateral payments in national currencies, encourage and expand the use of national currencies, particularly through the promotion of their use when signing international trade contracts. According to the draft agreement, the sides will also assume the required measures to lift barriers for payments in national currencies. -TASS

      De-dollarization efforts in Iran come against a new tranche of US sanctions on Tehran’s petrochemical sector, targeting Persian Gulf Petrochemical Industries Company.

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      In response to worsening relations between Washington and Tehran, the US Navy’s USS Abraham Lincoln aircraft carrier strike and bomber groups were deployed to the Gulf to send Iran a powerful message.

      Iran has been preparing for de-dollarization for quite some time. Earlier this year, Iran announced that four of its banks had developed a gold-backed cryptocurrency called PayMon.

      Iran is also escalating its de-dollarization effort by seeking a bilateral rial-yuan agreement with China.

      The writing is on the wall for dollar hegemony: Iran is leading the charge, intending to eliminate the dollar from its trade, a move that could potentially lead to a shooting war with the Americans.

    • Trump's North Korea Policy Should Be Encouraged, Not Undermined

      Authored by Peter Huessy via The Gatestone Institute,

      • China is rarely called to task in Washington by US leaders for its role in proliferating nuclear-weapons programs in some of the world’s most notorious rogue states. Pressure is rarely placed on Beijing even by US arms-control groups.

      • The Chinese government made a deliberate choice in 1982 — in violation of its obligations under the Nuclear Non-Proliferation Treaty of 1968 — to disperse nuclear-weapons technology to its allies in the Third World. Through the A.Q. Khan nuclear smuggling network in Pakistan, China was able to help produce nuclear weapons in Pakistan and North Korea, and start nuclear programs of varying significance in Iran, Libya and Iraq, and later in Syria.

      • The Trump administration is doing more than its predecessors to meet the challenges and threats posed by North Korea, and therefore should be encouraged to continue the policy of employing a mixture of tough measures and diplomacy.

      At a recent event on Capitol Hill — hosted by the Washington-based Mitchell Institute — the former China Country Director at the Office of the Secretary of Defense, Joe Bosco, defended U.S. President Donald Trump’s North Korea policy against critics who were accusing the White House either of leaning too far in the direction of diplomacy with Pyongyang, or too bent on imposing maximum economic and military pressure on it.

      The criticism, according to Bosco, stems from two false narratives — emanating from Pyongyang and Beijing — which have been governing the debate.

      The first is that North Korea is justified in having nuclear weapons, due to America’s long-standing “hostile policy” towards the regime in Pyongyang.

      The second is that China has had virtually no role in the establishment of North Korea’s nuclear program — and that Beijing seeks “denuclearization” and “stability” on the Korean peninsula.

      To grasp the absurdity of North Korea’s claim that its nuclear program is “defensive” in nature and created to counter American “hostility” — one need only ask why Pyongyang was party to the 1994 “Agreed Framework Between the United States of America and the Democratic People’s Republic of Korea” and the 2003 Six-Party Talks.

      China’s denial of having had anything to do with North Korea’s nuclear weapons program is equally ridiculous.

      In their 2009 book, The Nuclear Express: A Political History of the Bomb and Its Proliferation, co-authors Thomas C. Reed and Danny B. Stillman illustrate that the Chinese government made a deliberate choice in 1982 — in violation of its obligations under the Nuclear Non-Proliferation Treaty of 1968 — to disperse nuclear-weapons technology to its allies in the Third World. Through the A.Q. Khan nuclear smuggling network in Pakistan, China was able to help produce nuclear weapons in Pakistan and North Korea, and start nuclear programs of varying significance in Iran, Libya and Iraq, and later in Syria.

      Nevertheless, China is rarely called to task by US leaders for its role in proliferating nuclear-weapons programs in some of the world’s most notorious rogue states. Pressure is rarely placed on Beijing even by US arms-control groups. They, one would assume, would be most upset with China’s proliferation policies and seek to get China to admit that its gambit in deploying nuclear weapons in North Korea was designed to fuel tensions on the Korean peninsula.

      Ignoring China’s role is only one way in which Trump’s critics undermine his administration’s attempts at forging a successful policy to keep North Korea’s nuclear program in check.

      Another, more important, way in which Trump’s detractors harm his ability to re-establish deterrence against Pyongyang is by denouncing any move by the White House or State Department. On the one hand, senior members of Congressroutinely accuse the administration of provoking a confrontation and risking war through economic sanctions, missile-defense deployments and tough rhetoric.

      When, however, the administration scheduled a summit with North Korean dictator Kim Jong-un, and suspended certain joint military exercises to be held with South Korea, Trump was criticized by a former member of the National Security Council for achieving “virtually nothing.”

      Yet the North Korean government did suspend tests of nuclear weapons and long-range ballistic missiles — and for the first time in nearly 25 years, a North Korean leader put a nuclear deal on the table.

      This act, although far short of denuclearization, did eliminate the endless speculation of what the North Korean government would or would not do with its nuclear weapons, if left undeterred.

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      Pictured: U.S. President Donald Trump meets for negotiations with North Korean dictator Kim Jong-un in Singapore, on June 12, 2018. (Image source: Dan Scavino Jr./Wikimedia Commons)

      What this means is that the Trump administration is doing more than its predecessors to meet the challenges and threats posed by North Korea, and therefore should be encouraged to continue the policy of employing a mixture of tough measures and diplomacy.

    • Mexico Refuses To Name International Figures Bankrolling Migrant Caravans

      After freezing the bank accounts of 26 individuals and entities amid a probe into human trafficking, Mexico has refused to name the account owners – some of which appear to have originated in the US, UK, African nations and Central America, according to Breitbart

      Mexico’s Finance and Tax Secretariat (SHCP) on Thursday announced that the 26 accounts had been seized. Diplomatic sources told Breitbart News that the probe is being personally overseen by UIF Director Santiago Nieto Castillo, who briefs Mexican President Andres Manuel Lopez Obrador directly. 

      The SHCP’s Financial Intelligence Unit (UIF) tracked suspicious transactions beginning in October 2018 to determine the sources of funding for the caravans. The results reportedly pointed to some monies coming from the U.S., U.K., African nations, and throughout Central America. Diplomatic sources revealed the investigation is still developing since the case was prioritized Monday as tensions over tariffs escalated. –Breitbart

      As part of Mexico’s crackdown to avoid US tariffs, Mexican authorities also arrested two caravan organizers reportedly tied to the US-based group Pueblo Sin Fronteras, which helps migrants illegally cross into America. According to officials, the groups would demand money from some of the migrants. 

      What’s more, law enforcement sources revealed to Breitbart that the UIF investigation found four sanctioned accounts linked to human smuggling groups that are loyal to Mexican drug cartels in border towns. Two of the accounts were linked to Piedras Negras, which is tied to the Cartel Del Noreste faction of the Los Zetas, as well as an independent smuggler in the area. The two other accounts are believed to be tied to Gulf Cartel operators based in Reynosa, Tamaulipas. 

    • Pepe Escobar: The Unipolar Moment Is Over

      Authored by Pepe Escobar via ConsortiumNews.com,

      The Russia-China strategic partnership, consolidated last week in Russia, has thrown U.S. elites into Supreme Paranoia mode, and they are now holding the whole world hostage…

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      Something extraordinary began with a short walk in St. Petersburg last Friday.

      After a stroll, they took a boat on the Neva River, visited the legendary Aurora cruiser, and dropped in to examine the Renaissance masterpieces at the Hermitage. Cool, calm, collected, all the while it felt like they were mapping the ins and outs of a new, emerging, multipolar world.

      Chinese President Xi Jinping was the guest of honor of Russian President Vladimir Putin. It was Xi’s eighth trip to Russia since 2013, when he announced the New Silk Roads, or Belt and Road Initiative (BRI).

      First they met in Moscow, signing multiple deals. The most important is a bombshell: a commitment to develop bilateral trade and cross-border payments using the ruble and the yuan, bypassing the U.S. dollar.

      Then Xi visited the St. Petersburg International Economic Forum (SPIEF), Russia’s premier business gathering, absolutely essential for anyone to understand the hyper-complex mechanisms inherent in the construction of Eurasian integration. I addressed some of SPIEF’s foremost discussions and round tables here.

      In Moscow, Putin and Xi signed two joint statements – whose key concepts, crucially, are “comprehensive partnership”, “strategic interaction” and “global strategic stability.”

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      Xi and Putin cruising into a multipolar world: Aurora Cruiser Museum (Wikipedia)

      In his St. Petersburg speech, Xi outlined the “comprehensive strategic partnership”. He stressed that China and Russia were both committed to green, low carbon sustainable development. He linked the expansion of BRI as “consistent with the UN agenda of sustainable development” and praised the interconnection of BRI projects with the Eurasia Economic Union (EAEU). He emphasized how all that was consistent with Putin’s idea of a Great Eurasian Partnership. He praised the “synergetic effect” of BRI linked to South-South cooperation.

      And crucially, Xi stressed that China “won’t seek development to the expense of environment”; China “will implement the Paris climate agreement”; and China is “ready to share 5G technology with all partners” on the way towards a pivotal change in the model of economic growth.

      So what about Cold War 2.0?

      It was obvious this was slowly brewing for the past five to six years. Now the deal is in the open. The Russia-China comprehensive strategic partnership is thriving; not as an allied treaty, but as a consistent road map towards Eurasia integration and the consolidation of the multipolar world.

      Unipolarism – via its demonization matrix – had first accelerated Russia’s pivot to Asia. Now, the U.S.-driven trade war has facilitated the consolidation of Russia as China’s top strategic partner.

      Russia’s Ministry of Foreign Affairs better get ready to dismiss virtually everyday statementscoming, for instance, from the Chairman of the Joint Chiefs of Staff, Gen. Joseph Dunford, when he alleges that Moscow aims to use non-strategic nuclear weapons in the European theater. It’s part of a non-stop process – now in high gear – of manufacturing hysteria by frightening NATO allies with the Russian “threat.”

      Moscow better get ready to dodge and counteract reams of reports such as the latest from the RAND corporation, which outlines – what else? – Cold War 2.0 against Russia.

      In 2014, Russia did not react to sanctions imposed by Washington. Then, it would have sufficed to merely brandish the threat of default on $700 billion in external debt. That would have killed the sanctions.

      Now, there’s ample debate inside Russian intelligence circles on what to do in case Moscow faces the prospect of being cut off the CHIPS-SWIFT financial clearing system. 

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      A 1936 map of Eurasia. (Flickr)

      With few illusions about what may pass at the G20 in Osaka later this month, in terms of a breakthrough in U.S.-Russia relations, intel sources told me Rosneft’s CEO Igor Sechin is prepared to send a more “realistic” message— if push eventually comes to shove.

      His message to the EU, in this case, would be to cut them off, and link with China for good. That way, Russian oil would be completely redirected from the EU to China, making the EU completely dependent on the Strait of Hormuz.

      Beijing for its part seems to have finally absorbed that the current Trump administration offensive is not a mere trade war, but a full fledged attack on its economic miracle, including a concerted drive to cut China off from large swathes of the world economy.

      The war on Huawei – the Rosebud of China’s 5G supremacy – has been identified as an attack on thedragon’s head. The attack on Huawei means an attack not only on tech, mega-hub Shenzhen, but the whole Pearl River Delta: a $3 trillion yuan ecosystem, which supplies the nuts and bolts of the Chinese supply chain for high-tech manufacturers.

      Enter the Golden Ring

      Neither China’s technological rise, nor Russia’s unmatched hypersonic know-how have caused America’s structural malaise. If there are answers they should come from the Exceptionalist elites.

      The problem for the U.S. is the emergence of a formidable peer competitor in Eurasia – and worse still, a strategic partnership. It has thrown these elites into Supreme Paranoia mode, which is holding the whole world hostage.

      By contrast, the concept of the Golden Ring of Multipolar Great Powers has been floated, by which Turkey, Iraq, Iran, Pakistan, Russia and China might provide a “stability belt” along the South Asia Rimland.

      I have discussed variations of this idea with Russian, Iranian, Pakistani and Turkish analysts – but it sounds like wishful thinking. Admittedly all these nations would welcome establishing the Golden Ring; but no one knows which way Modi’s India would lean – intoxicated as it is with dreams of Big Power status as the crux of America’s “Indo-Pacific” concoction.

      It might be more realistic to assume that if Washington does not go to war with Iran – because Pentagon gaming has established this would be a nightmare – all options are on the table ranging from the South China Sea to the larger Indo-Pacific.

      The Deep State will not flinch to unleash concentric havoc on the periphery of both Russia and China and then try to advance to destabilize the heartland from the inside. The Russia-China strategic partnership has generated a sore wound: it hurts – so bad – to be a Eurasia outsider.

    • DOJ Targets 'NGOs And Individuals' In Spy Agency Abuse Probe

      The Justice Department revealed on Monday that it is investigating several “non-governmental organizations and individuals” in its “multifaceted” and “broad” probe into alleged misconduct by US intelligence agencies surrounding the 2016 US election, according to a DOJ letter to House Judiciary Committee Chairman Jerrold Nadler (D-NY).

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      The letter was in response to Nadler’s request as to the scope of the investigation, led by Connecticut US Attorney John Durham. 

      According to Fox NewsDurham is looking into whether “foreign intelligence services” played a role. Of note, the highly controversial “Steele Dossier” – created by an ex-British spy for employer Fusion GPS on behalf of the Clinton campaign an the DNC was referred to as “crown material” in emails unearthed last month.

      And while the letter doesn’t name specific individuals, foreign intel services or non-governmental organizations, the prime suspects here would be Christopher Steele, Fusion GPS, Stephan Halper, “Azra Turk,” Alexander Downer, Joseph Mifsud, along with UK and Australian intelligence services. 

      Last week, reports indicated Steele had agreed to talk with Durham if certain preconditions were met. Multiple sources familiar with the matter told Fox News, meanwhile, that Durham is “very dialed in” and “asking all the right questions.” Separately, sources within the Justice Department confirmed to Fox News that Barr has met “on multiple occasions in recent weeks” with Durham in Washington, D.C.

      Numerous problems with the Steele dossier’s reliability have surfaced, including several issues that were brought to the FBI’s attention before it cited the dossier in its FISA application and subsequent renewals. Special Counsel Robert Mueller’s report made plain, for example, that then-Trump lawyer Michael Cohen did not travel to Prague to conspire with Russian hackers seeking to access Democrat files, as the dossier alleged. –Fox News

      They knew…

      On Sunday, Rep. Mark Meadows (R-NC) told Fox News that he had seen “additional documents” which reveal that “prior to the first FISA application, Peter Strzok, Andy McCabe, and others at the FBI knew that Christopher Steele’s dossier was not credible.” 

      Meadows, speaking to “Fox News Sunday,” pointed specifically to a report from The Hill’s John Solomon, who found that Ukrainian businessman Konstantin Kilimnik, a key figure in Mueller’s report, was actually a U.S. informant. In his report, Mueller linked Kilimnik to Russian intelligence, and did not mention Kilimnik’s secretive ties to the U.S. in the report other court filings — even as Mueller suggested former Trump campaign chairman Paul Manafort’s ties to Kilimnik were nefarious. –Fox News

      “The deeper the dive we take into the Mueller report, we’re starting to find out some of the conclusions, and actually some of the facts they put forth in there, are a misrepresentation of what we actually know,” said Meadows. 

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    Today’s News 10th June 2019

    • The Government's Next Big Challenge: Regulating The Sex Robot Industry

      Today in your tax dollars at work” news, who would’ve thought a simple idea like sex robots would bring with it so much red tape?

      As the Asia Times notes, there are several companies currently developing robots designed to provide humans not only with companionship, but also with sexual pleasure. In fact, some are already on the market.

      And unlike conventional sex toys and dolls, sex robots may become mainstream. According to a 2017 survey, half of Americans think that having sex with robots will become a common practice within 50 years. But this practice comes with lots of question marks.

      One of the first problems is how we define “sex robot”. Just because something is attractive to a human and provides sexual gratification, does the term “sex robot” apply? Or, should they be defined as “sex toys”, which are “devices primarily for the stimulation of human genital organs” as defined by Alabama? After all, Alabama is the only US state that still has an outright ban on the sale of sex toys.

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      But it’s looking like these robots will be more than toys: they use self-learning algorithms to engage their partners emotions and offer companionship, as well. There’s been no word on if they’ll be programmable to spoof futures trades, however. 

      Take the Mark 1 robot, for instance. It has been made to resemble actress Scarlett Johansson and is regularly labeled a sex robot, but it’s creator, Ricky Ma Tsz Hang, states that it is not the robot’s intent. Instead, it’s supposed to assist with all sorts of tasks from “preparing a child’s lunch to keeping an elderly relative company”. 

      And there’s also legal issues that will arise. For instance, in the 2003 case Lawrence v. Texas, the Supreme Court struck down Texas’ sodomy law and established a right to sexual privacy. There’s some debate among Circuit Courts how Lawrence should be applied to state restrictions on the sale of sex toys. For now, Alabama’s ban has been upheld, but should it eventually fall – which would seem likely – states won’t be able to restrict wholesale sales of sex robots. Rumor has it, Michael Avenatti has been retained to represent the robots. 

      But bans on childlike sex robots may be different. It isn’t clear whether anybody in the United States currently owns a childlike sex robot, but the possibility has already prompted a bipartisan house bill, actually called the Curbing Realistic Exploitative Electronic Pedophilic Robots Act, or CREEPER, to pass in 2017. State politicians will likely follow down the same road, in attempts to ban childlike sex robots. The question of whether or not they will survive constitutional challenge is a different story.

      For starters, the Supreme Court has held that prohibitions on child pornography do not violate the First Amendment because the state has a compelling interest in curtailing the effects of child pornography on the children portrayed. But the Supreme Court also held that the Child Pornography Prevention Act of 1996 was overly broad in its attempt to prohibit “child pornography that does not depict an actual child”. 

      Ergo, childlike sex robots are still technically robots and, like virtual pornography, they don’t require any actual interaction with children. Yet, it can be argued that childlike sex robots would have serious detrimental effects that may compel state action.

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      And while sex robots may eventually become sentient, they are now still just products. Another question is how the US Consumer Product Safety Commission should regulate the hazards associated with them. Existing products aren’t well regulated and this could be cause for concern given the obvious – and excrutiatingly painful – ways they could be harmful to their users. For instance, what if parts of a robot are manufactured with lead paint or a toxin? And what if the robot, with the mechanical strength of five human beings accidentally crushes a human’s finger – or a human’s other parts?

      Even worse, what if they become sentient enough to start bossing you around at the house?

      Finally, what about the super sensitive data that these robots will collect? Would they be vulnerable to hacking? After they learn what a user likes and doesn’t like from a sexual standpoint, isn’t that arguably the most private type of information that someone would not want shared with the world? Will Huawei be allowed to import sex robots?

      Much of the forthcoming regulation will depend on the effects of sex robots on individuals and societies.

      In 2018, the Houston City Council enacted an ordinance to ban the operation of America’s first sex robot brothel. An attendee at one meeting warned: “A business like this would destroy homes, families, finances of our neighbors and cause major community uproars in the city.”

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      But as for right now, there isn’t really any evidence of how the introduction of these robots would affect individuals or societies.

      We don’t have any data on whether or not a person who uses a childlike sex robot would be more or less likely to harm an actual child. We don’t have any data as to whether or not robots would be substituted for humans and relationships – or whether they could even enhance relationships. There are a significant amount of unanswered questions and it is difficult to conduct empirical studies in until sex robots become more prevalent.

      Regardless, they are coming to the American market soon and the reality will be upon us quicker than we think. The article describes it as a “real world challenge that society is about to face for the first time”. And, like everything else government dips their hands into, our confidence in their effective regulation of this industry is minimal, at best. 

    • "Europe Will Not Be Europe"

      Authored by Guy Milliere via The Gatestone Institute,

      • In the United Kingdom, the Brexit Party victory at 31.6% of the vote was a remarkable achievement that showed the persistent willingness of millions of Britons to leave the European Union. The “populist” positions — the defense of national sovereignty and European civilization, refusal of uncontrolled immigration and diktats of Brussels technocrats — have gained ground.

      • The parties that have ruled Europe for decades obtained weak results, but, with rare exceptions, did not collapse — and will continue to dominate the European Union.

      • The Greens may gain more influence – along with its consequences. To anyone who read the Greens’ programs, it is evident that they are essentially leftists with an environmental green mask. They support unrestricted immigration and multiculturalism. They are…resolutely hostile to any defense of Western civilization, to free enterprise and free markets. They are often in favor of zero growth. Most of them support an apocalyptic vision of climate change and say that the survival of humanity will be at stake around the corner if Europe does not take drastic measures to “save the planet”. All of them are in favor of authoritarian decisions imposed from Brussels to all of Europe.

      • A European parliament placed under the influence of the Greens will almost certainly accelerate the slide towards more power given to the unelected members of the European Commission, and a phasing out of nuclear energy and fossil fuels. Policies favorable to still more immigration already are in preparation.

      On the evening of May 26, Italian Deputy Prime Minister and Minister of the Interior Matteo Salvini commented on the results of the European elections, “A new Europe is born.” The party he leads, the League, had just won with 34.3% of the vote. Other parties defined in Europe as “populist” also won: in Hungary, the Fidesz-KDNP alliance (Hungarian Civic Alliance and the Christian Democratic People’s Party) received 52.3% of the vote. In Poland, the PiS (Law and Justice) party won 45.4% of the vote. Sebastian Kurz’s Austrian People’s Party (ÖVP) won34.6% of the vote and the Freedom Party of Austria (FPÖ), his ally, was awarded 17.2%, despite a recent scandal that led to the resignation of Heinz-Christian Strache, chairma of the FPO, from his post as Vice-Chancellor of Austria (the Kurtz government fell on May 27). In the United Kingdom, the Brexit Party victory— at 31.6% of the vote — was a remarkable achievement that signaled the persistent willingness of millions of Britons to leave the European Union. There, the “populist” positions — the defense of national sovereignty and European civilization, refusal of uncontrolled immigration and diktats of Brussels technocrats — gained ground.

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      In many European countries, however, the results of the “populists” were mixed. In France, Marine Le Pen’s National Rally finished first, but with 23.3% of the vote: only 0.9% more than The Republic on the Move, created three years ago by Emmanuel Macron. The extreme unpopularity of the French President apparently did not cost him much. In Sweden, the Sweden Democrats received only 15.4%, or two percent less than in the 2018 Swedish general elections. The Alternative for Germany (AfD) received 11%. In Belgium, the Vlams Belang received 11.2% of the vote. In Spain, Vox, with 6.2%, had to deal with even more disappointing results. In the Netherlands, the Forum for Democracy got 10.9% and Geert Wilders’s Party for Freedom, which fell to 3.5%, no longer has a seat.

      The “populist wave” often mentioned in recent weeks did not overwhelm Europe. “Populist” parties will have only a little more than twenty percent of the seats in the European Parliament: enough to be heard, but not enough to exert influence.

      The parties that have ruled Europe for decades obtained weak results, but, with rare exceptions, did not collapse — and will continue to dominate the European Union. The crushing defeat of the British Conservative Party (8.9%, the lowest in its history) seems to have been the result of Theresa May’s inability to deliver Brexit. In France, the sharp downfall of The Republicans (8.5%) and the Socialist Party (6.2%) can be explained by most of their leaders (Republicans and socialists) having joined Macron’s The Republic on the Move party two years ago. In Germany, the CDU-CSU alliance obtained only 28.9% of the vote, but it was enough to win nevertheless. The socialist SPD received an honorable score, 15.8%.

      In several Western European countries, socialist parties prevailed, indicating that apparently socialism is not losing ground. The Spanish Socialist Party triumphed(32.8%), as well as the Portuguese Socialist Party (33.4%). In the Netherlands, the Labor Party (18.9%) finished first. In Italy, socialists obtained 22%; in Denmark, 21.5%, and in Sweden, 23.6%.

      The center-right European People’s Party (EPP) and the Party of European Socialists (PES), however, lost ground. Their alliance will have only 43% of the seats. For the first time since 1979, when the first European Parliament elections were held, they will not be able to form a majority, although they nevertheless remain dominant. All the same, they will need allies and will likely find them in ALDE (Alliance of Liberals and Democrats for Europe), a group composed of center-left parties that support still more abandonment of sovereignty as well as an even more centrally-controlled European Union.

      The EPP-PES alliance will also likely find allies in the real winners of the elections: the green parties. The German Greens (20.5% of the vote) finished second. In France, the EELV (Europe Ecology, The Greens), with 13.5% of the votes, finished third. The Greens also showed strength in the Netherlands (10.9%), Sweden (11.4%), Denmark (13.2%), Austria (14.1%) and Belgium (15.2%). As the EPP-PES alliance will rely on those parties to counter and isolate the populist parties, the Greens may gain still more influence — along with its consequences.

      To anyone who has read the Greens’ programs, it is evident that they are essentially leftists with an environmental green mask. They support unrestricted immigration and multiculturalism. They are seemingly blind to the dangers arising from the Islamization of Europe and resolutely hostile to any defense of Western civilization, to free enterprise and free markets. They are often in favor of zero growth. Most of them support an apocalyptic vision of climate change and say that the survival of humanity will soon be at stake if Europe does not take drastic measures to “save the planet“. All of them are in favor of authoritarian decisions imposed from Brussels on all of Europe.

      A European parliament placed under the influence of the Greens will almost certainly accelerate the slide towards more power given to the unelected members of the European Commission, and a phasing out of nuclear energy and fossil fuels. Policies favorable to still more immigration already are in preparation.

      Hungarian Prime Minister Viktor Orbán continues to emphasize the dangers of Islamic mass immigration into Europe and has defined Hungary as “the last bastion against Islamization of Europe.” Italy’s Salvini has said that “Europe is threatened by Islamization” and could become an “Islamic caliphate”. Most other “populist” leaders, however, did not take risks and chose not to address that issue. France’s Marine Le Pen spoke about “extremist Islamism”, but immediately added that most European Muslims integrate. In Britain, Brexit Party leader Nigel Farage did not say a word on the subject. Tommy Robinson, who made Islamic danger the main theme of his campaign, was subjected to constant harassment and barely received 2% of the vote. In the Netherlands, the leader of the Forum for Democracy party, Thierry Baudet, defended the same positions as Wilders, but avoided talking about Islam, and Wilders’s party was basically defeated.

      Europe’s severe demographic problems were barely mentioned during the campaign. The idea that a change in population could occur was treated as if it were just a “rightist” fantasy. Facts, however, are hard to ignore. Fertility rates in almost all European countries are well below the replacement level of 2.1 children per woman. The figure for Italy is 1.45. In Germany it is 1.48; in Spain 1.5; in Hungary 1.4, and in Poland 1.38. The only country in continental Europe where a higher figure exists is France (1.97) — but France also has the largest Muslim population in Europe, and all available data show that birth rates are far higher in Muslim families. The population of most European countries is decreasing. Italy is losing 250,000 inhabitants a year, equivalent to almost the population of Venice. Germany decided to welcome millions of immigrants to stop its population decline; today, 12% of German citizens are foreign-born. The massive influx of hundreds of thousands of Muslim immigrants in 2015 was a societal disaster. Integration did not occur. Most of the newcomers are still jobless and rely on welfare to survive. In addition, sexual assault cases increased.

      Anti-Semitic attacks have also increased. The situation has now grown so toxic that Felix Klein, the Commissioner for Jewish Life in Germany and the Fight against Anti-Semitism, recently urged Jews not to wear skullcaps in public. Chancellor Merkel said that, “there is to this day not a single synagogue, not a single day care centre for Jewish children, not a single school for Jewish children that does not need to be guarded by German policemen.” Although investigations so far show that most anti-Semitic attacks come from Muslim immigrants, she preferred to speak of the “specters of the past.”

      The situation in France is not much different. Sammy Ghozlan, director of the National Bureau of Vigilance Against Anti-Semitism (BNVCA), alleges that all the anti-Semitic attacks in the country have one thing in common: “the culprit is Muslim”. The French government claims that it fights anti-Semitism, but it pointsonly to “rightist and leftist anti-Semitism.” It never speaks of Muslim anti-Semitism.

      Commenting on the results of the European elections — and noting that: “populist” movements will have no weight in the European Parliament; that the Greens are gaining ground; that Islamization will not stop, and that anti-Semitism will probably continue to rise — the journalist Éric Zemmour said on television that Europe is probably on the road to an irreversible decline. The author Renaud Camus also noted in his diary that the European people seem to be choosing euthanasia.

      In the first paragraph of The Strange Death of Europe, Douglas Murray stated: “By the end of the lifespan of most people currently alive, Europe will not be Europe”.

      Despite the enthusiasm of some commentators on the results of “populist” movements, signs seem to show that European elections have not stopped Europe’s barreling towards decline. If nothing changes, in a few decades Europe truly could no longer be Europe.

    • Zuesse: The Force That Is Ending Freedom

      Authored by Eric Zuesse via Off-Guardian.org,

      Every empire is a dictatorship. No nation can be a democracy that’s either heading an empire, or a vassal-state of one. Obviously, in order to be a vassal-state within an empire, that nation is dictated-to by the nation of which it is a colony.

      However, even the domestic inhabitants of the colonizing nation cannot be free and living in a democracy, because their services are needed abroad in order to impose the occupying force upon the colony or vassal-nation. This is an important burden upon the ‘citizens’ or actually the subjects of the imperial nation.

      Furthermore, they need to finance, via their taxes, this occupying force abroad, to a sufficient extent so as to subdue any resistance by the residents in any colony.

      Every empire is imposed, none is really voluntary. Conquest creates an empire, and the constant application of force maintains it.

      Every empire is a dictatorship, not only upon its foreign populations (which goes without saying, because otherwise there can’t be any empire), but upon its domestic ones too, upon its own subjects.

      Any empire needs weapons-makers, who sell to the government and whose only markets are the imperial government and its vassal-nations or ‘allies’.

      By contrast, ’enemy’ nations are ones that the imperial power has placed onto its priority-list of nations that are yet to become conquered. There are two main reasons to conquer a nation.

      One is in order to be enabled to extract, from the colony, oil, or gold, or some other valuable commodity.

      The other is in order to control it so as to be enabled to use that land as a passageway for exporting, from a vassal-nation, to other nations, that vassal-nation’s products.

      International trade is the basis for any empire, and the billionaires who own controlling blocs of stock in a nation’s international corporations are the actual rulers of it, the beneficiaries of empire, the recipients of the wealth that is being extracted from the colonies and from the domestic subjects.

      The idea of an empire is that the imperial nation’s rulers, its aristocracy, extract from the colonies their products, and they impose upon their domestic subjects the financial and military burdens of imposing their international dictatorship upon the foreign subjects.

      Some authors say that there is a “Deep State” and that it consists of (some undefined elements within) the intelligence services, and of the military, and of the diplomatic corps, of any given dictatorship; but, actually, those employees of the State are merely employees, not the actual governing authority, over that dictatorship.

      The actual Deep State are always the aristocrats, themselves, the people who run the revolving door between ‘the private sector’ (the aristocracy’s corporations) and the government.

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      In former times, many of the aristocrats were themselves governing officials (the titled ‘nobility’), but this is no longer common.

      Nowadays, the aristocracy are the individuals who own controlling blocs of stock in international corporations (especially weapons-making firms such as Lockheed Martin and BAE, because the only markets for those corporations are the corporation’s own government and its vassal states or ‘allies’); and such individuals are usually the nation’s billionaires, and, perhaps, a few of the mere centi-millionaires.

      A small number, typically less than 100, of these extremely wealthy individuals, are the biggest donors to politicians, and to think tanks, and to other non-profits (these latter being also tax-write-offs to their donors, and so are tax-drains to the general public) that are involved in the formation of the national government’s policies.

      Of course, they also are owners of and/or advertisers in the propaganda-media, which sell the aristocracy’s core or most-essential viewpoints to the nation’s subjects in order to persuade those voters to vote only for the aristocracy’s selected candidates and not for any who oppose the aristocracy.

      These few, mainly billionaires, are the actual Deep State — the bosses over the dictatorship, the ultimate beneficiaries in any empire.

      In order to maintain this system, of international dictatorship or empire, the most essential tool is deceit, of the electorate, by the aristocracy.

      The method of control is: the bought agents of the Deep State lie to the public about what their polices will be if they win, in order to be able to win power; and, then, once they have won power, they do the opposite, which is what they have always been paid by the Deep State (the aristocracy) to help them to do.

      Thereby, elections aren’t “democratic” but ‘democratic’: they are mere formalities of democracy, without the substance of democracy. All of the well-financed candidates for the top offices are actually the Deep State’s representatives, and virtually none are the representatives of the public, because the voters have been deceived, and were given choices between two or more candidates, none of whom will represent the public if and when elected.

      Here are some recent examples of this system — the imperial system, international dictatorship, in action:

      During Donald Trump’s Presidential campaign, he said:

      The approach of fighting Assad and ISIS simultaneously was madness, and idiocy. They’re fighting each other and yet we’re fighting both of them. You know, we were fighting both of them. I think that our far bigger problem than Assad is ISIS, I’ve always felt that. Assad is, you know I’m not saying Assad is a good man, ’cause he’s not, but our far greater problem is not Assad, it’s ISIS. … I think, you can’t be fighting two people that are fighting each other, and fighting them together. You have to pick one or the other.”

      Assad is allied with Russia against the Sauds (who are the chief ally of the U.S. aristocracy), so the U.S. (in accord with a policy that George Herbert Walker Bush had initiated on 24 February 1990 and which has been carried out by all subsequent U.S. Presidents) was determined to overthrow Assad, but Trump said that he was strongly opposed to that policy.

      Months before that, Trump had said:

      I think Assad is a bad guy, a very bad guy, all right? Lots of people killed. I think we are backing people we have no idea who they are. The rebels, we call them the rebels, the patriotic rebels. We have no idea. A lot of people think, Hugh, that they are ISIS. We have to do one thing at a time. We can’t be fighting ISIS and fighting Assad. Assad is fighting ISIS. He is fighting ISIS. Russia is fighting now ISIS. And Iran is fighting ISIS.

      We have to do one thing at a time. We can’t go — and I watched Lindsey Graham, he said, I have been here for 10 years fighting. Well, he will be there with that thinking for another 50 years. He won’t be able to solve the problem. We have to get rid of ISIS first. After we get rid of ISIS, we’ll start thinking about it. But we can’t be fighting Assad. And when you’re fighting Assad, you are fighting Russia, you’re fighting — you’re fighting a lot of different groups. But we can’t be fighting everybody at one time.”

      In that same debate (15 December 2015) he also said:

      In my opinion, we’ve spent $4 trillion trying to topple various people that frankly, if they were there and if we could’ve spent that $4 trillion in the United States to fix our roads, our bridges, and all of the other problems; our airports and all of the other problems we’ve had, we would’ve been a lot better off.

      I can tell you that right now. We have done a tremendous disservice, not only to Middle East, we’ve done a tremendous disservice to humanity. The people that have been killed, the people that have wiped away, and for what?

      It’s not like we had victory. It’s a mess. The Middle East is totally destabilized. A total and complete mess. I wish we had the $4 trillion or $5 trillion. I wish it were spent right here in the United States, on our schools, hospitals, roads, airports, and everything else that are all falling apart.”

      Did he do that? No. Did he instead intensify what Obama had been trying to do in Syria — overthrow Assad — yes.

      As the U.S. President, after having won the 2016 Presidential campaign, has Trump followed through on his criticism there, against the super-hawk, neoconservative, Republican U.S. Senator Lindsey Graham? No. Did he instead encircle himself with precisely such super-hawks, such neoconservatives? Yes.

      Did he intensify the overthrow-Assad effort as Graham and those others had advocated? Yes. Did America’s war against Syria succeed? No. Did he constantly lie to the voters? Yes, without a doubt.

      Should that be grounds for impeaching him? A prior question to that one is actually: Would a President Mike Pence be any different or maybe even worse than Trump? Yes.

      So: what, then, would be achieved by removing Trump from office? Maybe it would actually make things a lot worse. But how likely would the U.S. Senate be to remove Trump from office if the House did impeach Trump?

      Two-thirds of the U.S. Senate would need to vote to remove the President in order for a President to be removed after being impeached by the House. A majority of U.S. Senators, 53, are Republicans.

      If just 33 of them vote not to convict the President, then Trump won’t be removed. In order to remove him, not only would all 47 of the Democrats and Independents have to vote to convict, but 20 of the 53 Republicans would need to join them. That’s nearly 40% of the Republican Senators. How likely is that? Almost impossible.

      What would their voters who had elected them back home think of their doing such a thing? How likely would such Senators face successful re-election challenges that would remove those Senators from office? Would 20 of the 53 be likely to take that personal risk?

      Why, then, are so many Democrats in the House pressing for Trump’s impeachment, since Trump’s being forced out of the White House this way is practically impossible and would only install a President Pence, even if it could succeed? Is that Democratic Party initiative anything else than insincere political theater, lying to their own gullible voters, just being phonies who manipulate voters to vote for them instead of who are actually serving them?

      Is that what democracy is, now: insincere political theater? Is that “democracy”? America’s voters are trapped, by liars, so it’s instead mere ‘democracy’. It’s just the new form of dictatorship. But it’s actually as ancient as is any empire.

      There’s nothing new about this — except one thing: the U.S. regime is aiming to be the ultimate, the last, the final, empire, the ruler over the entire world; so, it is trying especially hard, ‘to defend freedom, democracy and human rights throughout the world’, as Big Brother might say.

      Trump’s Democratic predecessor, Barack Obama, was just as evil, and just as insincere, as Trump, but only a far more skillful liar, who deceived his voters to think that he would fight corruption, work to improve relations with Russia, provide a public option in his health-insurance plan, and otherwise work to reduce economic inequality, to improve the economic situation for disadvantaged Americans, and to prosecute banksters.

      He abandoned each one of those stated objectives as soon as he won against John McCain, on 4 November 2008, and then yet more when he defeated Mitt Romney in 2012. And aren’t some of those promises the same ones that candidate Trump had also advocated and then abandoned as soon as he too was (s)elected?

      THE THREAT TO THE EMPIRE

      The heroic fighters for the freedom of everyone in the world are the whistleblowers, who report to the public the corruption and evil that they see perpetrated by their superiors, their bosses, and perpetrated by people who are on the public payroll or otherwise obtaining increased income by virtue of being selected by the government to become government contractors to serve an allegedly public function.

      All liars with power hate whistleblowers and want to make special examples of any part of the press that publishes their truths, their facts, their stolen documents. These documents are stolen because that’s the only way for them to become public and thereby known to the voters so that the voters can vote on the basis of truths as in a democracy, instead of be deceived as in a dictatorship.

      Even if the truth is stolen from the liars, instead of being kept private (“Confidential”) for them, are the whistleblowers doing wrong to steal the truth from the liars? Or, instead, are the whistleblowers heroes: are they the authentic guardians of democracy and the precariously thin wall that separates democracy from dictatorship?

      They are the latter: they are the heroes. Unfortunately, the vast majority of such heroes are also martyrs — martyrs for truth, against lies. Every dictatorship seeks to destroy its whistleblowers. That’s because any whistleblower constitutes a threat to The System — the system of control.

      In all of U.S. history, the two Presidents who pursued whistleblowers and their publishers the most relentlessly have been Trump and Obama. The public are fooled to think that this is being done for ’national security’ reasons instead of to hide the government’s crimes and criminality.

      However, not a single one of the Democratic Party’s many U.S. Presidential candidates is bringing this issue, of the U.S. government’s many crimes and constant lying, forward as being the central thing that must be criminalized above all else, as constituting “treason.” None of them is proposing legislation saying that it is treason, against the public — against the nation.

      Every aristocracy tries to deceive its public in order to control its public; and every aristocracy uses divide-and-rule in order to do this.

      But it’s not only to divide the public against each other (such as between Republicans versus Democrats, both of which are actually controlled by the aristocracy), but also to divide between nations, such as between ‘allies’ versus ‘enemies’ — even when a given ‘enemy’ (such as Iraq in 2003) has never threatened, nor invaded, the United States (or whatever the given imperial ‘us’ may happen to be), and thus clearly this was aggressive war and an international war-crime, though unpunished as such.

      The public need to fear and hate some ‘enemy’ which is the ‘other’ or ‘alien’, in order not to fear and loathe the aristocracy itself — the actual source of (and winner from) the systemic exploitation, of the public, by the aristocracy.

      The pinnacle of the U.S. regime’s totalitarianism is its ceaseless assault against Julian Assange, who is the uber-whistleblower, the strongest protector for whistleblowers, the safest publisher for the evidence that they steal from their employers and from their employers’ government.

      He hides the identity of the whistleblowers even at the risk of his own continued existence. Right now, the U.S. regime is raising to a fever-pitch and twisting beyond recognition not only U.S. laws but the U.S. Constitution, so as to impose its will against him. President Trump is supported in this effort by the corrupt U.S. Congress, to either end Assange’s life, or else lock him up for the rest of his heroic life in a dungeon having no communication with the world outside, until he does finally die, in isolation, punishment for his heroic last-ditch fight for the public’s freedom and for democracy — his fight, actually, against our 1984 regime.

      What Jesus of Nazareth was locally for the Roman regime in his region, Assange is for the U.S. regime throughout the world: an example to terrify anyone else who might come forth effectively to challenge the Emperor’s authority.

      A key country in this operation is Ecuador, which is ruled by the dictator Lenin Moreno, who stole office by lying to the public and pretending to be a progressive who backed his democratically elected predecessor, Rafael Correa, but then as soon as he won power, he reversed Correa’s progressive initiatives, including, above all, his protection of Assange, who had sought refuge in the Ecuadoran Embassy in London.

      On 11 April 2019, RT headlined “Who is Lenin Moreno and why did he hand Assange over to British police?” and reported that:

      Following his 2017 election, Moreno quickly moved away from his election platform after taking office. He reversed several key pieces of legislation passed under his predecessor which targeted the wealthy and the banks. He also reversed a referendum decision on indefinite re-election while simultaneously blocking any potential for Correa to return.

      He effectively purged many of Correa’s appointments to key positions in Ecuador’s judiciary and National Electoral Council via the CPCCS-T council which boasts supra-constitutional powers.

      Moreno has also cozied up to the US, with whom Ecuador had a strained relationship under Correa. Following a visit from Vice President Mike Pence in June 2018, Ecuador bolstered its security cooperation with the US, including major arms deals, training exercises and intelligence sharing.

      Following Assange’s arrest Correa, who granted Assange asylum in the first place, described Moreno as the “greatest traitor in Ecuadorian and Latin American history” saying he was guilty of a “crime that humanity will never forget.”

      Despite his overwhelming power and influence, however, Moreno and his family are the subject of a sweeping corruption probe in the country, as he faces down accusations of money laundering in offshore accounts and shell companies in Panama, including the INA Investment Corp, which is owned by Moreno’s brother.

      Damning images, purportedly hacked from Moreno’s phone, have irreparably damaged both his attempts at establishing himself as an anti-corruption champion as well as his relationship with Assange, whom he accused of coordinating the hacking efforts.

      On 14 April 2019, Denis Rogatyuk at The Gray Zone headlined: “Sell Out: How Corruption, Voter Fraud and a Neoliberal Turn Led Ecuador’s Lenin to Give Up Assange Desperate to ingratiate his government with Washington and distract the public from his mounting scandals, Ecuadorian President Lenin Moreno has sacrificed Julian Assange – and his country’s independence”, and he described some of the documentation for the accusations that Moreno is corrupt.

      On 12 April 2019, Zero Hedge headlined “Facebook Removes Page Of Ecuador’s Former President On Same Day As Assange’s Arrest”, and opened: “Facebook has unpublished the page of Ecuador’s former president, Rafael Correa, the social media giant confirmed on Thursday, claiming that the popular leftist leader violated the company’s security policies.”

      On 16 April 2019, Jonathan Turley bannered “‘He Is Our Property’: The D.C. Establishment Awaits Assange With A Glee And Grudge”, and opened:

      They will punish Assange for their sins

      The key to prosecuting Assange has always been to punish him without again embarrassing the powerful figures made mockeries by his disclosures. That means to keep him from discussing how the U.S. government concealed alleged war crimes and huge civilian losses, the type of disclosures that were made in the famous Pentagon Papers case. He cannot discuss how Democratic and Republican members either were complicit or incompetent in their oversight. He cannot discuss how the public was lied to about the program.

      A glimpse of that artificial scope was seen within minutes of the arrest. CNN brought on its national security analyst, James Clapper, former director of national intelligence. CNN never mentioned that Clapper was accused of perjury in denying the existence of the National Security Agency surveillance program and was personally implicated in the scandal that WikiLeaks triggered.

      Clapper was asked directly before Congress, “Does the NSA collect any type of data at all on millions or hundreds of millions of Americans?”

      Clapper responded, “No, sir. … Not wittingly.” Later, Clapper said his testimony was “the least untruthful” statement he could make.
      That would still make it a lie, of course, but this is Washington and people like Clapper are untouchable.

      In the view of the establishment, Assange is the problem.

      On 11 April 2019, the YouGov polling organization headlined “53% of Americans say Julian Assange should be extradited to America”.

      On 13 April 2019, I headlined “What Public Opinion on Assange Tells Us About the US Government Direction”, and reported the only international poll that had ever been done of opinions about Assange, and its findings demonstrated that, out of the 23 nations which were surveyed, U.S. was the only one where the public are anti-Assange, and that the difference between the U.S. and all of the others was enormous and stark. The report opened:

      The only extensive poll of public opinion regarding Julian Assange or Wikileaks was Reuters/Ipsos on 26 April 2011, “WikiLeaks’ Julian Assange is not a criminal: global poll”, and it sampled around a thousand individuals in each of 23 countries — a total of 18,829 respondents.

      The Reuters news-report was vague, and not linked to any detailed presentation of the poll-findings, but it did say that “US respondents had a far more critical view” against Wikileaks than in any other country, and that the view by Americans was 69% “believing Assange should be charged and 61 percent opposing WikiLeaks’ mission.” Buried elsewhere on the Web was this detailed presentation of Ipsos’s findings in that poll:

      Oppose Wikileaks:

      61% US
      38% UK
      33% Canada
      32% Poland
      32% Belgium
      31% Saudi Arabia
      30% Japan
      30% France
      27% Indonesia
      26% Italy
      25% Germany
      24% Sweden
      24% Australia
      22% Hungary
      22% Brazil
      21% Turkey
      21% S. Korea
      16% Mexico
      16% Argentina
      15% Spain
      15% Russia
      15% India
      12% S. Africa

      Is the US a democracy if the regime is so effective in gripping the minds of its public as to make them hostile to the strongest fighter for their freedom and democracy?

      On 13 April 2019, washingtonsblog headlined “4 Myths About Julian Assange DEBUNKED”, and here was one of them:

      Myth #2: Assange Will Get a Fair Trial In the US

      14-year CIA officer John Kiriakou notes: Assange has been charged in the Eastern District of Virginia — the so-called “Espionage Court.” That is just what many of us have feared. Remember, no national security defendant has ever been found not guilty in the Eastern District of Virginia. The Eastern District is also known as the “rocket docket” for the swiftness with which cases are heard and decided. Not ready to mount a defense? Need more time? Haven’t received all of your discovery? Tough luck. See you in court.

      … I have long predicted that Assange would face Judge Leonie Brinkema were he to be charged in the Eastern District. Brinkema handled my case, as well as CIA whistleblower Jeffrey Sterling’s. She also has reserved the Ed Snowden case for herself. Brinkema is a hanging judge.

      On 20 May 2019, former British Ambassador Craig Murray (who had quit so that he could blow the whistle) headlined “The Missing Step”and argued that the only chance that Assange now has is if Sweden refuses to extradite Assange to the US in the event that Britain honors the Swedish request to extradite him to Sweden instead of to the US (The decision on that will now probably be made by the US agent Boris Johnson instead of by the regular Tory Theresa May.)

      How can it reasonably be denied that the US is, in fact (though not nominally) a dictatorship? All of its allies are thus vassal-nations in its empire. This means acquiescence (if not joining) in some of the US regime’s frequent foreign coups and invasions; and this means their assisting in the spread of the US regime’s control beyond themselves, to include additional other countries.

      It reduces the freedom, and the democracy, throughout the world; it spreads the US dictatorship internationally. That is what is evil about what in America is called “neoconservatism” and in other countries is called simply “imperialism.” Under American reign, it is now a spreading curse, a political plague, to peoples throughout the world. Even an American whistleblower about Ukraine who lives in the former Ukraine is being targeted by the US regime.

      This is how the freedom of everyone is severely threatened, by the US empire — the most deceitful empire that the world has ever experienced. The martyrs to its lies are the canaries in its coal mine. They are the first to be eliminated.

      Looking again at that rank-ordered list of 23 countries, one sees the US and eight of its main allies (or vassal-nations), in order: US, UK, Canada, Poland, Belgium, Saudi Arabia, Japan, France, Indonesia. These are countries where the subjects are already well-controlled by the empire. They already are vassals, and so are ordained as being ‘allies’.

      At the opposite end, starting with the most anti-US-regime, are: S. Africa, India, Russia, Spain, Argentina, Mexico, S. Korea, Turkey. These are countries where the subjects are not yet well-controlled by the empire, even though the current government in some of them is trying to change its subjects’ minds so that the country will accept US rule.

      Wherever the subjects reject US rule, there exists a strong possibility that the nation will become placed on the US regime’s list of ‘enemies’. Consequently, wherever the residents are the most opposed to US rule, the likelihood of an American coup or invasion is real.

      The first step toward a coup or invasion is the imposition of sanctions against the nation. Any such nation that is already subject to them is therefore already in danger. Any such nation that refuses to cooperate with the US regime’s existing sanctions — such as against trading with Russia, China, Iran, or Venezuela — is in danger of becoming itself a US-sanctioned nation, and therefore officially an ‘enemy’.

      And this is why freedom and democracy are ending.

      Unless and until the US regime itself becomes conqueredeither domestically by a second successful American Revolution (this one to eliminate the domestic aristocracy instead of to eliminate a foreign one), or else by a World War III in which the US regime becomes destroyed even worse than the opposing alliance willthe existing insatiable empire will continue to be on the war-path to impose its dictatorship to everyone on this planet.

    • Beijing Bans Washington Post, Guardian Websites Amid Political Crackdown

      China has banned the websites of The Washington Post and The Guardian amid a government crackdown on information surrounding the politically sensitive 30th anniversary of the Tiananmen Square massacre on June 4th, according to the Post – which notes that the two websites were among “the last few major English-language outlets that were still regularly accessible from mainland China” without using a VPN.

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      As we noted last week, Chinese social media sites were placed on lockdown ahead of the anniversary, as messing app WeChat and micro-blogging site Weibo prevented users from changing their personal information, including profile photos. Another Chinese platform – video sharing website Bilibili, said that it suspended real-time comments and other features for “technical upgrades.” 

      All but the most oblique references to the incident were immediately scrubbed, and, during the days around the anniversary, users complained about not even being able to access the function to change their avatars.

      Every language edition of Wikipedia was fully banned in mid-May. A CNN reporter said the network’s website was blocked again this week shortly after CNN.com ran a top story commemorating the 1989 event. –Washington Post

      Beijing rarely divulges their reasoning for blocking various websites, and it’s unclear whether the Post and Guardian bans are permanent. If past behavior is any indicator, they’re toast. 

      Reacting to the crackdown, Secretary of State Mike Pompeo said in a Monday statement: “the Chinese Communist Party leadership sent tanks into Tiananmen Square to violently repress demonstrations calling for democracy, human rights and an end to rampant corruption,” adding “China’s one-party state tolerates no dissent and abuses human rights whenever it serves its interests.

      Powered by machine learning, China uses extensive censorship software known as “The Great Firewall” to block over 10,000 web domains, and sniff out Virtual Private Networks (VPNs) which allow Chinese people to circumvent the restrictions. As we noted in March, Google is helping Beijing by banning ads for VPNs in China

      According to Beijing, their censorship efforts maintain the country’s “Internet sovereignty,” with officials touting the Great Firewall as a model that should be adopted by other governments. 

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    • MSM Mourns Death Of CIA-Backed Syrian Al-Qaeda/ISIS Ally

      Authored by Caitlin Johnstone via Medium.com,

      On Wednesday the alternative media outlet Southfront published an articletitled “New Video Throws Light On Jaysh Al-Izza High-Tolerance To Al-Qaeda Ideology” about newly discovered footage showing the leader of a “rebel” faction in Syria cozying up with a militant who was wearing a badge of the official flag of ISIS.

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      The video shows Jaysh al-Izza General Commander Major Jamil al-Saleh congratulating a group of his fighters on the occasion of Eid al-Fitr in a underground bunker,” Southfront reports.

      “One of the fighters greeted by Saleh was wearing a batch of the Islamic Black Standard with the Seal of Muhammad. This is a well-known symbol of al-Qaeda and the official flag of ISIS.”

      Today, mass media outlets are mourning the death of a well-known Jaysh al-Izza fighter named Abdel-Basset al-Sarout with grief-stricken beatifications not seen since the death of war criminal John McCain. An Associated Pressreport which has been published by major news outlets like The New York TimesThe GuardianPBS and Bloomberg commemorates Sarout as a “Syrian soccer goalkeeper” who “won international titles representing his country”, as “the singer of the revolution”, and as “an icon among Syria’s opposition”.

      Remember Major Jamil al-Saleh from two paragraphs ago? AP features his glowing eulogy in its write-up on Sarout’s death:

      “He was both a popular figure, guiding the rebellion, and a military commander,” said Maj. Jamil al-Saleh, leader of Jaish al-Izza rebel group, in which Sarout was a commander.

      “His martyrdom will give us a push to continue down the path he chose and to which he offered his soul and blood as sacrifice.”

      Other mainstream outlets like BBCThe Daily Beast and Al Jazeera have contributed their own fawning hagiographies of the late Jaysh al-Izza commander.

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      “Formed in 2013, Jaysh al-Izza was one of the first Free Syrian Army (FSA) groups in northern Syria to benefit from U.S. support through the CIA’s ‘Timber Sycamore’ train and equip program, which had been approved by then U.S. President Barack Obama,” Southfront reports in the aforementioned article. “The group received loads of weapons from the U.S. including Grad rockets, as well as Fagot and TOW anti-tank guided missiles (ATGMs).”

      “Jaysh al-Izza received this support under the pretension of being a ‘moderate group’ led by a known Syrian Arab Army (SAA) defector, al-Saleh,” Southfront adds. “However, the group’s acts were not in line with these claims. Since its formation, Jaysh al-Izza has been deeply linked to al-Qaeda’s branch in Syria, the al-Nusra Front. The group became one of the main allies of al-Nusra when its changed its name to Hay’at Tahrir al-Sham (HTS) in 2017.”

      “Western thought leaders are lionizing Abdel Baset al-Sarout who was killed fighting the Syrian army,” tweeted journalist Dan Cohen of the mass media response to Sarout’s death.

      “They conveniently omit that he fought in a militia allied with al-Qaeda and pledged allegiance to ISIS.”

      Cohen linked to an excerpt from his mini-documentary The Syria Deceptionfeaturing footage of Sarout holding an ISIS flag, leading chants calling for the extermination of the Alawite minority in Syria, and announcing his allegiance to ISIS.

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      Other publicly available video footage includes a speech by Sarout urging cooperation between his own faction, ISIS and Jabhat al-Nusra (Al-Qaeda’s Syrian franchise), saying “we know that these two groups are not politicized and have the same goals as us, and are working for God.”

      “God willing we will work with them shoulder-to-shoulder when we leave here,” Sarout has been translated as saying in the speech.

      “And we are not Christians or Shiaa to be scared of suicide belts and car bombs. We consider these things as strengths of ours, and God willing they will be just that. This message is to the Islamic State and our brothers in Jabhat al-Nusra, that when we come out of here we will all be one hand to fight Christians and not to have internal fights among ourselves. We want to take back all the lands that have been filthied by the regime, that were entered and taken over by Shiaas and apostates.”

      This bloodthirsty terrorist warmongering was taken by the aforementioned AP hagiography and twisted into the single sentence, “He repeatedly denounced rebel infighting and called on Syrians to unite against government forces.”

      The Atlantic’s Hassan Hassan framed Sarout’s unconscionable agendas as mere “flaws” which actually add to his inspiring and heroic story, tweeting, “Some individuals celebrated as heroes make you doubt all stories of heroes in history books. Others, like Abdulbasit Sarout, not inspire of but despite his flaws, make those stories highly plausible. He’s a true legend & his story is well documented. May his soul rest in peace.”

      Yeah, come on, everybody’s got flaws. Some people suck at parallel parking, some people team up with ISIS and Al-Qaeda on genocidal extermination campaigns. We’ve all got our quirky little foibles.

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      We can expect more and more of these mass media distortions as Syria and its allies draw closer to recapturing Syrian land from the extremist forces which nearly succeeded in toppling Damascus just a few short years ago.

      As these distortions pour in, keep this in mind: all of the violence that is still happening in Syria is the fault of the US and its allies, who helped extremist jihadist factions like Jaysh al-Izza overrun the nation to advance the preexisting goal of effecting regime change. The blame for all the death, suffering and chaos which ensues from a sovereign nation fighting to reclaim its land from these bloodthirsty factions rests solely on the government bodies which inflicted their dominance over the region in the first place.

      You will see continuing melodramatic garment-rending from the US State Department and its mass media stenographers about “war crimes” and “human rights violations” as though the responsibility for this violence rests somewhere other than on the US-centralized power alliance, but they will be lying. What these warmongering propagandists are doing is exactly the same as paying a bunch of violent thugs to break into a home and murder its owner, then standing by and sounding the alarm about the way the homeowner chooses to fight off their assailants.

      After it was discovered that the US and its allies armed actual, literal terrorist factions in Syria with the goal of effecting regime change, the only sane response would have been for the public to loudly and aggressively demand that all governments involved to take immediate action to completely rectify all damage done by this unforgivable war crime at any cost, and for there to be war crimes tribunals for every decision maker who was a part of it. Instead, because of propaganda circulated by the same mass media narrative management firms who are sanctifying the memory of Abdel-Basset al-Sarout today, the public remains asleep to the depravity of its rulers. This dynamic must change if we are to survive and thrive as a species.

      *  *  *

      The best way to get around the internet censors and make sure you see the stuff I publish is to subscribe to the mailing list for my website, which will get you an email notification for everything I publish. My work is entirely reader-supported, so if you enjoyed this piece please consider sharing it around, liking me onFacebook, following my antics on Twitter, throwing some money into my hat on Patreon or Paypalpurchasing some of my sweet merchandise, buying my new book Rogue Nation: Psychonautical Adventures With Caitlin Johnstone, or my previous book Woke: A Field Guide for Utopia Preppers. For more info on who I am, where I stand, and what I’m trying to do with this platform, click here. Everyone has my unconditional permission to republish or use any part of this work (or anything else I’ve written) in any way they like free of charge.

      Bitcoin donations:1Ac7PCQXoQoLA9Sh8fhAgiU3PHA2EX5Zm2

    • Senate Democrats Demand Amnesty For Foreign Nationals

      A group of Senate Democrats spearheaded by Dianne Feinstein (D-CA) have demanded that the United States grant amnesty to foreign nationals living in the country on Temporary Protected Status (TPS). 

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      Feinstein, along with Chris Van Hollen (D-MD), Tim Kaine (D-VA) and Ben Cardin (D-MD) have called on the GOP-controlled Senate to pass their amnesty plan which would give almost a half-million foreign nationals American citizenship and all the votes that come with it. House Democrats and seven House Republicans passed a similar measure granting amnesty to any illegal alien claiming to have arrived in the US as a child, according to Breitbart‘s John Binder. 

      According to Feinstein’s website

      Currently, there are approximately 437,000 people with TPS in the United States from ten designated countries: El Salvador, Haiti, Honduras, Nepal, Nicaragua, Somalia, Sudan, South Sudan, Syria, and Yemen. Liberians, originally granted TPS in 1999, are currently the only country protected by DED – that status is set to terminate on March 31, 2019. The SECURE Act will provide stability for these individuals and their communities by giving them the ability to apply for legal permanent residency. Under the bill, all TPS and DED recipients who qualified under the most recent designation and who have been continuously present in the United States for at least three years would be eligible to apply for legal permanent residency.

      In a Wednesday statement, Cardin said “The Senate must act and the president must sign into law protection for Dreamers, who mostly have known no other country but America,” adding “These individuals have lawfully lived and worked in the U.S. as our neighbors, as they sought refuge in the U.S. We have an obligation to take action and give needed predictability and safety to people who are in an uncertain status.”

      In February the Trump administration extended the Temporary Protected Status (TPS) for more than 300,000 foreign nationals while a preliminary injunction against a Trump admin immigration policy to return non-Mexican asylum seekers to Mexico “for the duration of their immigration proceedings” in the United States. 

      In February, Pew Research noted that nearly 2/3 of the 300,000 or so immigrants – roughly 195,000 people, are from El Salvador. 50,000 are from Haiti, and the rest are from Sudan and Nicaragua.

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      TPS was created under the Immigration and Nationality Act of 1990 (INA) introduced by the late Sen. Ted Kennedy (D-MA) and signed into law by President George H.W. Bush. It has acted as a sort of quasi-amnesty used by foreign nationals who would otherwise be in the country illegally, and shields individuals from deportation back to countries which have suffered through war, famine or natural disasters. 

      The program, which was originally set to expire in July 1992, has been renewed by every administration since. 

      DHS will announce whether they will also renew the status of other foreign nationals covered under TPS set to expire in 2020, including people from Honduras, Yemen and Somalia. 

      Congressional Democrats, however, would rather just make them into voting citizens. 

       

    • Doug Casey: Stupidity, Evil, & The Decline Of The US

      Via InternationalMan.com,

      (Today’s article is an adaptation from one of Doug’s speeches.)

      It used to be that America was a country of free thinkers.

      “Say what you think, and think what you say.” That’s an expression you don’t hear much anymore.

      It’s much more like the world of 1984 where everything is “double think.” You need to think twice before you say something in public. You think three times before you say something when you’re standing in an airport line.

      Regrettably, the US is no longer the land of the free and the home of the brave. It’s become the land of whipped and whimpering dogs that roll over on their backs and wet themselves when confronted with authority.

      Now, why are Americans this way? Let me give you two reasons – though there are many more.

      First, there’s a simple absence of virtue. Let’s look at the word virtue. It comes from the Latin vir, which means manly, even heroic. To the Romans, virtues were things like fortitude, nobility and courage. Those virtues are true to the root of the word.

      When people think of virtues today they think of faith, hope, charity—which are not related to the word’s root meaning. These may pass as virtues in a religious sense. But, outside a Sunday school, they’re actually actually vices. This deserves a discussion, because I know it will shock many. But I’ll save that for another time.

      An absence of virtues and the presence of subtle vices is insinuated throughout society. Worse, overt vices like avarice and especially envy are encouraged. Envy, in particular will become a big vice in the years to come. It’s similar to jealousy, but worse. Jealousy says “You have something I want; I’ll try to take it from you”. Envy says “You have something I want. If I can’t take it from you, I’ll destroy it, and hurt you if I can.” Jealousy and envy seem to motivate most Democratic Party presidential candidates. No wonder America is in rapid decline.

      A second reason is unsound philosophy. The reigning philosophy in the US used to be based on individualism and personal freedom. It’s now statism and collectivism. But most people don’t think about philosophy—or even have a consistent worldview. More than ever, they do what seems like a good idea at the time.

      The average American has problems. But his rulers are something else again. Most of the people running the US are either knaves or fools. How do we know if we are dealing with a knave or a fool? In other words, are you dealing with somebody who is evil or just stupid? To give a recent, but classic, example, are you dealing with a Dick Cheney or a George W. Bush? Do you prefer the knavish Obama, or the knavish Biden? The foolish Trump, or the foolish Pence. Not much of a real choice anywhere…

      At this point, the US resembles the planet Mars, which is circled by two moons, Phobos and Deimos, fear and terror in Greek. The US is also being circled by two moons, Kakos and Chazos, evil and stupidity in Greek. It’s hard to imagine the Founding Fathers having seen that as a possibility.

      One of the relatively few laws I believe in is Pareto’s Law. Most people are familiar with it as the 80-20 rule—20% of the people do 80% of the work, 20% commit 80% of the crime, and so forth. It also applies to character and ethics. Most people—80%—are basically decent. What about that other 20%? Let’s call them potential trouble sources because they can go either way. But 20% of that 20%—4%—are the sociopaths; they consistently have bad intentions. They’re usually hiding under rocks. But they like to emerge at election time.

      In normal times when everything’s going along well, they can look normal. They’ll deliver the mail, or sell shoes or stocks. They’ll pet the dog, and play softball on weekends. But when circumstances in society get ugly, and reach a certain point, they start evidencing themselves. The rest of the 20% start swinging along with them. That’s the place where we are right now in the US. It’s Pareto’s Law in operation. You can see it in basically all the Democratic Party’s candidates—Bernie, Pocahontas, AOC, and two dozen others.

      A lot of people believe in American Exceptionalism. A good argument can be made for America having been exceptional in the past. It’s factually correct that America is the only country founded on the principles of individualism and personal freedom. It was actually different. It was special, even unique. But I don’t think it’s true anymore.

      Of course all the world’s countries like to believe they’re special or better than the rest. But they’re only different on the surface, in trivial ways. None—other than America—value individualism and personal freedom as founding virtues. Look at Russia throughout the 20th century. It was a phenomenal nightmarish disaster in Soviet times.

      Look at Germany during the ‘30s and ‘40s. China, under Mao for 30 years, was the home of institutionalized, industrial scale mass murder. The same is true in lots of other countries… Cambodia, Rwanda, the Congo. There are dozens of other countries where bloody chaos reigned over the last century. But not the US. It was different.

      But what if America has ceased to exist? What if it’s been transformed into just another nation state called the United States, with very different ideals and values? Why should it have a different fate than those other countries? I don’t see any reason why that would be the case.

      But if 80% of Americans are basically decent, well-intentioned people, what is going wrong and why?

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      Let me give you three reasons… although there are many others.

      Number one, as I indicated earlier, Americans no longer have any philosophical anchor. They no longer share a national mythos—individualism, personal freedom, free minds, and free markets are now mocked. They may have some nebulous ideas about ethics that they picked up from the Boy Scouts. But they think all political and economic systems—and certainly all cultures—are equally good. The reigning philosophy is a mixture of cultural Marxism, identity politics, anti-male feminism, and anti-white racism.

      I suppose it was inevitable in a country where a large plurality of people are dumb enough to spend four years and several hundred thousand dollars to be indoctrinated with those values.

      The second thing is fear. It’s a reigning emotion in this country among the diminishing middle class.

      Desperation and apathy characterize the growing lower classes. No wonder they’re cemented to the bottom of society. It’s a rare person that rises from the lower class because of those attitudes.

      How about the upper classes? Their dominant emotions are avarice and arrogance; they think they’re superior because they have more money. In many cases they’re rich not because they produce anything. But because they’re cronies, benefiting from the flood of money coming from the Fed, or the avalanche of laws and regulations coming from the Congress and the President.

      America is still basically a middle-class country, although becoming less and less that way almost daily. And fear is the dominant emotion of the middle class. Fear of losing everything they have. Fear of losing their jobs. Fear they won’t be able to meet the credit card payments, the car payments, the mortgage payment. Fear they can’t afford to send their kids to college—which is a mistake incidentally. But that’s another story.

      The whole country is driven by fear… and it’s not a good thing. Deimos and Phobos, those two moons circling Mars are now circling the US, along with Kakos and Chazos.

      The third, and perhaps most critical reason the US is going downhill—beyond a lack of a philosophical anchor and an atmosphere of fear—is a reflexive belief in government.

      The United States used to be more like Switzerland, which is by far the most prosperous country in Europe. When you ask the Swiss, “Who’s the president of Switzerland?”, It’s rare that anyone can tell you. It’s academic. However, nobody cares. He doesn’t do anything. Politics aren’t a big part of their lives.

      But today in the US, people have come to view the government as a cornucopia. People expect it to solve all their problems. And that’s a real problem. Government is a genuine growth industry, and it attracts the worst type of people. Government is inevitably where sociopaths—the 4% and the 20%—are drawn. Washington draws sociopaths like a pile of dog droppings draws flies.

      It’s perfectly predictable. And why is that? Mao said it best, “The power of the state comes out the barrel of a gun.” Government is about some people controlling other people. That’s what attracts sociopaths, and that’s why they go to Washington.

      But enough bad news… what is it that makes things better in the world? Well, there are two things.

      One is technology. The good news is there are more scientists and engineers alive today than have lived in all of earth’s history previously combined. And they’re continually increasing our control of nature. For most people, life is no longer “solitary, poor, nasty, brutish, and short”, as Hobbes said. Technology is advancing at the rate of Moore’s law. And that improves the standard of living.

      The second thing is savings. Individuals, like squirrels, are genetically wired to produce more than they consume. The difference between production and consumption can be saved. That creates capital. And capital enables technology. That creation of wealth should continue, barring a world war. Or most of the world’s governments acting more like Venezuela or Zimbabwe…. Which is quite possible.

      So, in conclusion, I have some good news, and some bad news.

      In the looming Greater Depression, most of the real wealth in the world will still exist. It’s just going to change ownership.

      Hopefully, you’ll be among those who aren’t adversely affected.

      *  *  *

      Unfortunately most people have no idea what really happens when a government goes out of control, let alone how to prepare… The coming economic and political crisis is going to be much worse, much longer, and very different than what we’ve seen in the past. That’s exactly why New York Times best-selling author Doug Casey and his team just released an urgent video. Click here to watch it now.

    • ECB Floats Rate Cut Trial Balloon, Is "Open" To Cutting Rates

      Last week’s non-committal ECB announcement caught markets by surprise, with the Euro jumping despite Mario Draghi’s best attempts to signal further easing even as he hinted at growing “downside risks”, prompting speculation that the ECB may have lost the last shreds of its credibility and leading Rabobank to publish a piece titled “Whatever It Takes” > “Whatever“.”

      Not used to being spurred by markets, Mario Draghi refused to take such aggression against his legacy quietly – especially as the former Goldman partner is set to retire shortly – and on Sunday, the European Central Bank used its traditional trial balloon conduit, Reuters, which reported that ECB policymakers “are open to cutting the ECB’s policy rate again” if economic growth weakens in the rest of the year and a strong euro hurts a bloc already bearing the brunt of a global trade war, clearly hoping that this jawboning would be sufficient to slam the euro (it wasn’t with the EURUSD basically unchanged from its Friday close).

      As a reminder, last Thursday the ECB said that its interest rates would stay “at their present levels” until mid-2020 but President Mario Draghi added rate setters had started a discussion about a possible cut or fresh bond purchases to stimulate inflation.

      This conflicting message failed to convince some investors, who saw it as too tenuous a commitment to more stimulus, sending the euro rallying to a nearly 3 month high of $1.1347 against the U.S. dollar.

      So in an attempt to convince the skeptics, Reuters cited its traditionally anonymous “two sources” familiar with the ECB’s policy discussions, who said a rate cut was firmly in play if the bloc’s economy was to stagnate again after expanding by 0.4% in the first quarter of the year.

      “If inflation and growth slow, then a rate cut is warranted,” said one of the sources, who requested anonymity because the ECB’s deliberations are confidential.

      The problem is that no matter what Draghi says, or “floats”, the market is concerned that the ECB is approaching the end of its credible ammo: with the ECB’s deposit rate already negative 40 bps and Germany’s yield hitting all time low. In this context, countering the euro’s strength, rather than lowering already rock-bottom borrowing costs, would be the main reason for a further cut to that deposit rate, one of the sources said.

      But how can the ECB pursue a “surgical” devaluation of the euro (amusingly nobody ever accused the central bank of manipulating its currency when in reality that is all it does) without also slamming government bond yields which have made Europe’s entire banking system into a NIRP zombie trading near record low levels?

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      “I’ll give you five reasons for a rate cut,” the source said before repeating “exchange rate” five times.

      While the ECB doesn’t formally admit it targets an exchange rate – just like every other central bank – Draghi noted the euro’s appreciation in his news conference on Thursday and has long highlighted the currency as a crucial determinant of financing conditions.

      So what FX level could trigger the ECB to move?

      The Reuters source said a euro at $1.15 would still be tolerable for some but $1.20 would be a critical level to watch. And now that the bogey has been set, the market will certainly test the ECB’s resolve.

      The bigger problem facing Europe is… the US. The comnmon currency has risen by 2% against the dollar in just over a week as the Federal Reserve itself signaled its willingness to cut its interest rates if needed. This, in turn, was seen by some analysts such as those from Goldman, as a sign the U.S. central bank was bowing to pressure from the White House to keep the dollar weak and strengthen the administration’s hand in its trade negotiations. Furthermore, Italy’s central bank governor Ignazio Visco also blamed the euro’s surge after the ECB’s latest decision on “interactions with U.S. interest rates”.

      That said, even Reuters conceded that the argument for more quantitative easing from the ECB was less clear to some policymakers, according to the “sources.” One of them said more QE could help soothe stock markets if these were spooked by an escalation in the trade war, although there would be a risk for the ECB in appearing to kowtow to equity investors (not like that has ever stopped central banks, which in recent years have largely admitted their only mandate is preserving a levitating stock market).

      Ironically, the other said the main benefit of QE was compressing the difference between short- and long-term borrowing costs, making access to finance easier for companies and households, but this so-called term premium was already low. What he meant is that should the ECB cut rates even more, European banks – already on the edge – will start toppling over like dominoes as the bank business model no longer works under a NIRP regime.

      As such it will be poetic irony that the same central banks that launched unprecedented “unorthodox” policies to preserve the world’s banking giants a decade ago, will be the culprits behind the wholesale devastation of these same banks. Luckily for Mario Draghi, he will be far away, merrily enjoying his retirement on the shores of one of central Europe’s scenic (if not too secluded) lakes. His successor however, will not be so lucky.

    • The Most Crucial Pipeline Of The Middle East?

      Authored by Vanand Meliksetian for Oilprice.com,

      Contemporary Middle Eastern history is strongly influenced by energy politics. Besides providing revenue for the state’s coffers, oil is also a potent geopolitical tool in the hands of resource-rich countries. Recently, officials from Lebanon, Syria and Iraq have engaged in talks to restart the dysfunctional pipeline that once connected oilfields near Kirkuk in Iraq with the coastal city of Tripoli in Lebanon. Restarting the pipeline could have long-term political, economic, and strategic consequences for the involved states and the wider region.

      The original infrastructure was constructed during the 30s of the previous century when two 12-inch pipes transported oil from Kirkuk to Haifa in British mandated Palestine and Tripoli in French-mandated Lebanon. The Tripoli line was supplemented by a 30-inch pipeline in the 50s which could transport approximately 400,000 barrels/day. The Kirkuk-Tripoli pipeline was suspended by Syria during the Iraq-Iran war in an attempt to support Tehran in its struggle against Baghdad.

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      (Click to enlarge)

      Paving the way

      The current political climate, which has enabled cooperation between Lebanon, Syria, and Iraq, is the consequence of one country’s foreign policy. Since the U.S. invasion of Iraq and the overthrow of Saddam Hussein, Iranian influence has grown considerably across the Middle East. Tehran’s support for proxies in neighboring countries has strongly influenced regional politics and made Saudi Arabia nervous of what it sees as “Persian encroachment”.

      The Iranian support for Syria’s President Assad provided a lifeline to the regime during the country’s civil war. Tehran has invested significantly in maintaining the position of its ally in Damascus. In neighboring Iraq, the democratization process installed a Shia-dominated parliament which is supported by powerful paramilitary groups funded and organized by the Quds force, the branch of Iran’s Revolutionary Guard responsible for extraterritorial activities. Despite significant military and political gains, consolidation is required to cement the ties between Iran’s Arab partners, which would also benefit Tehran.

      The art of the deal

      While Iran’s participation in regional politics was necessary for creating the right environment for cooperation, Russia’s involvement has proven to be crucial. The Kremlin’s decision to participate in the Syrian civil war on the side of Assad’s forces was a pivotal moment in reestablishing control over territories essential for the Kirkuk-Tripoli pipeline to commence operations. Moscow has also established good political relations with both Iraq and Lebanon to become a broker for facilitating an agreement.

      The participation of Rosneft was very useful for Moscow’s efforts in the region. The Russian energy giant maintains good relations with the Iraqi government where it operates several oil fields and the Kirkuk-Ceyhan oil pipeline. Recently, Rosneft signed an agreement with the Lebanese government to operate the storage facility in Tripoli for the next twenty years. Therefore, Russian involvement was important for the Arab countries to consider refurbishing the outdated Kirkuk-Tripoli pipeline. 

      Despite the modest capacity of the pipeline, reestablishing trade could have a long-term impact on regional politics. The new pipeline would be a physical link between the participating countries and will cement the political ties for decades due to interdependency regarding energy security and the economic interest of energy exports.

      Uncertainties ahead

      Despite the intention to reinvigorate the old Kirkuk-Tripoli pipeline, it remains unclear whether the project will see the light of day. Especially the situation in Syria creates a veil of uncertainty which makes construction and operation a problematic task. Although the Syrian government has reestablished control over Eastern Syria, IS remains a threat to stability with attacks being an almost daily occurrence. It is uncertain whether the depleted and exhausted Syrian army will be able to secure the pipeline while engaging the remaining rebel-held areas in Idlib.

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      Also, it can be expected that Washington won’t idly sit by while its rivals in Moscow and Tehran entrench themselves even further in the region. Therefore, for now at least, talks of reinvigorating the pipeline will continue behind closed doors until the security situation improves significantly.

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    Today’s News 9th June 2019

    • The Pentagon's Spoiling For A Fight… But With China, Not Iran

      Authored by Michael Klare via TomDispatch.com,

      After years of a fruitless War on Terror, the Pentagon is turning its focus to China and Russia…

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      The recent White House decision to speed the deployment of an aircraft carrier battle group and other military assets to the Persian Gulf has led many in Washington and elsewhere to assume that the U.S. is gearing up for war with Iran. As in the lead-up to the 2003 invasion of Iraq, U.S. officials have cited suspect intelligence data to justify elaborate war preparations. On May 13th, acting Secretary of Defense Patrick Shanahan even presented top White House officials with plans to send as many as 120,000 troops to the Middle East for possible future combat with Iran and its proxies. Later reports indicated that the Pentagon might be making plans to send even more soldiers than that.

      Hawks in the White House, led by National Security Advisor John Bolton, see a war aimed at eliminating Iran’s clerical leadership as a potentially big win for Washington. Many top officials in the U.S. military, however, see the matter quite differently — as potentially a giant step backward into exactly the kind of low-tech ground war they’ve been unsuccessfully enmeshed in across the Greater Middle East and northern Africa for years and would prefer to leave behind.

      Make no mistake: if President Trump ordered the U.S. military to attack Iran, it would do so and, were that to happen, there can be little doubt about the ultimate negative outcome for Iran. Its moth-eaten military machine is simply no match for the American one. Almost 18 years after Washington’s war on terror was launched, however, there can be little doubt that any U.S. assault on Iran would also stir up yet more chaos across the region, displace more people, create more refugees, and leave behind more dead civilians, more ruined cities and infrastructure, and more angry souls ready to join the next terror group to pop up. It would surely lead to another quagmire set of ongoing conflicts for American soldiers. Think: Iraq and Afghanistan, exactly the type of no-win scenarios that many top Pentagon officials now seek to flee. But don’t chalk such feelings up only to a reluctance to get bogged down in yet one more war-on-terror quagmire. These days, the Pentagon is also increasingly obsessed with preparations for another type of war in another locale entirely: a high-intensity conflict with China, possibly in the South China Sea.

      After years of slogging it out with guerrillas and jihadists across the Greater Middle East, the U.S. military is increasingly keen on preparing to combat “peer” competitors China and Russia, countries that pose what’s called a “multi-domain” challenge to the United States. This new outlook is only bolstered by a belief that America’s never-ending war on terror has severely depleted its military, something obvious to both Chinese and Russian leaders who have taken advantage of Washington’s extended preoccupation with counterterrorism to modernize their forces and equip them with advanced weaponry.

      For the United States to remain a paramount power — so Pentagon thinking now goes — it must turn away from counterterrorism and focus instead on developing the wherewithal to decisively defeat its great-power rivals. This outlook was made crystal clear by then-Secretary of Defense Jim Mattis in testimony before the Senate Armed Services Committee in April 2018. “The negative impact on military readiness resulting from the longest continuous period of combat in our nation’s history [has] created an overstretched and under-resourced military,” he insisted. Our rivals, he added, used those same years to invest in military capabilities meant to significantly erode America’s advantage in advanced technology. China, he assured the senators, is “modernizing its conventional military forces to a degree that will challenge U.S. military superiority.” In response, the United States had but one choice: to reorient its own forces for great-power competition. “Long-term strategic competition — not terrorism — is now the primary focus of U.S. national security.”

      This outlook was, in fact, already enshrined in the National Defense Strategy of the United States of America, the Pentagon’s overarching blueprint governing all aspects of military planning. Its $750 billion budget proposal for fiscal year 2020, unveiled on March 12th, was said to be fully aligned with this approach. “The operations and capabilities supported by this budget will strongly position the U.S. military for great-power competition for decades to come,” acting Secretary of Defense Shanahan said at the time.

      In fact, in that budget proposal, the Pentagon made sharp distinctions between the types of wars it sought to leave behind and those it sees in its future. “Deterring or defeating great-power aggression is a fundamentally different challenge than the regional conflicts involving rogue states and violent extremist organizations we faced over the last 25 years,” it noted. “The FY 2020 Budget is a major milestone in meeting this challenge,” by financing the more capable force America needs “to compete, deter, and win in any high-end potential fight of the future.”

      Girding for “High-End” Combat

      If such a high-intensity war were to break out, Pentagon leaders suggest, it would be likely to take place simultaneously in every domain of combat — air, sea, ground, space, and cyberspace — and would feature the widespread utilization of emerging technologies, such as artificial intelligence (AI), robotics, and cyberwarfare. To prepare for such multi-domain engagements, the 2020 budget includes $58 billion for advanced aircraft, $35 billion for new warships — the biggest shipbuilding request in more than 20 years — along with $14 billion for space systems, $10 billion for cyberwar, $4.6 billion for AI and autonomous systems, and $2.6 billion for hypersonic weapons. You can safely assume, moreover, that each of those amounts will be increased in the years to come.

      Planning for such a future, Pentagon officials envision clashes first erupting on the peripheries of China and/or Russia, only to later extend to their heartland expanses (but not, of course, America’s). As those countries already possess robust defensive capabilities, any conflict would undoubtedly quickly involve the use of front-line air and naval forces to breach their defensive systems — which means the acquisition and deployment of advanced stealth aircraft, autonomous weapons, hypersonic cruise missiles, and other sophisticated weaponry. In Pentagon-speak, these are called anti-access/area-defense (A2/AD) systems.

      As it proceeds down this path, the Department of Defense is already considering future war scenarios. A clash with Russian forces in the Baltic region of the former Soviet Union is, for instance, considered a distinct possibility. So the U.S. and allied NATO countries have been bolstering their forces in that very region and seeking weaponry suitable for attacks on Russian defenses along that country’s western border.

      Still, the Pentagon’s main focus is a rising China, the power believed to pose the greatest threat to America’s long-term strategic interests. “China’s historically unprecedented economic development has enabled an impressive military buildup that could soon challenge the U.S. across almost all domains,” Admiral Harry Harris Jr., commander of the U.S. Pacific Command (USPACOM) and now the U.S. ambassador to South Korea, typically testified in March 2018. “China’s ongoing military modernization is a core element of China’s stated strategy to supplant the U.S. as the security partner of choice for countries in the Indo-Pacific.”

      As Harris made clear, any conflict with China would probably first erupt in the waters off its eastern coastline and would involve an intense U.S. drive to destroy China’s A2/AD capabilities, rendering that country’s vast interior essentially defenseless. Harris’s successor, Admiral Philip Davidson, as commander of what is now known as the U.S. Indo-Pacific Command, or USINDOPACOM, described such a scenario this way in testimony before Congress in February 2019: “Our adversaries are fielding advanced anti-access/area denial (A2/AD) systems, advanced aircraft, ships, space, and cyber capabilities that threaten the U.S. ability to project power and influence into the region.” To overcome such capabilities, he added, the U.S. must develop and deploy an array of attack systems for “long-range strike[s]” along with “advanced missile defense systems capable of detecting, tracking, and engaging advanced air, cruise, ballistic, and hypersonic threats from all azimuths.”

      If you read through the testimony of both commanders, you’ll soon grasp one thing: that the U.S. military — or at least the Navy and Air Force — are focused on a future war-scape in which American forces are no longer focused on terrorism or the Middle East, but on employing their most sophisticated weaponry to overpower the modernized forces of China (or Russia) in a relatively brief spasm of violence, lasting just days or weeks. These would be wars in which the mastery of technology, not counterinsurgency or nation building, would — so, at least, top military officials believe — prove the decisive factor.

      The Pentagon’s Preferred Battleground

      Such Pentagon scenarios essentially assume that a conflict with China would initially erupt in the waters of the South China Sea or in the East China Sea near Japan and Taiwan. U.S. strategists have considered these two maritime areas America’s “first line of defense” in the Pacific since Admiral George Dewey defeated the Spanish fleet in 1898 and the U.S. seized the Philippines. Today, USINDOPACOM remains the most powerful force in the region with major bases in Japan, Okinawa, and South Korea. China, however, has visibly been working to erode American regional dominance somewhat by modernizing its navy and installing along its coastlines short- and medium-range ballistic missiles, presumably aimed at those U.S. bases.

      By far its most obvious threat to U.S. dominance in the region, however, has been its occupation and militarization of tiny islands in the South China Sea, a busy maritime thoroughfare bounded by China and Vietnam on one side, Indonesia and the Philippines on the other. In recent years, the Chinese have used sand dredged from the ocean bottom to expand some of those islets, then setting up military facilities on them, including airstrips, radar systems, and communications gear. In 2015, China’s President Xi Jinping promisedPresident Obama that his country wouldn’t take such action, but satellite imagery clearly shows that it has done so. While not yet heavily fortified, those islets provide Beijing with a platform from which to potentially foil U.S. efforts to further project its power in the region.

      “These bases appear to be forward military outposts, built for the military, garrisoned by military forces, and designed to project Chinese military power and capability across the breadth of China’s disputed South China Sea claims,” Admiral Harris testified in 2018. “China has built a massive infrastructure specifically — and solely — to support advanced military capabilities that can deploy to the bases on short notice.”

      To be clear, U.S. officials have never declared that the Chinese must vacate those islets or even remove their military facilities from them. However, for some time now, they’ve been making obvious their displeasure over the buildup in the South China Sea. In May 2018, for instance, Secretary of Defense Mattis disinvited the Chinese navy from the biennial “Rim of the Pacific” exercises, the world’s largest multinational naval maneuvers, sayingthat “there are consequences” for that country’s failure to abide by Xi’s 2015 promise to Obama. “That’s a relatively small consequence,” he added. “I believe there are much larger consequences in the future.”

      What those consequences might be, Mattis never said. But there is no doubt that the U.S. military has given careful thought to a possible clash in those waters and has contingency plans in place to attack and destroy all the Chinese facilities there. American warships regularly sail provocatively within a few miles of those militarized islands in what are termed “freedom of navigation operations,” or FRONOPS, while U.S. air and naval forces periodically conduct large-scale military exercises in the region. Such activities are, of course, closely monitored by the Chinese. Sometimes, they even attempt to impede FRONOPS operations, leading more than once to near-collisions. In May 2018, Admiral Davidson caused consternation at the Pentagon by declaring, “China is now capable of controlling the South China Sea in all scenarios short of war with the United States” — a comment presumably intended as a wake-up call, but also hinting at the kinds of conflicts U.S. strategists foresee arising in the future.

      The Navy’s War vs. Bolton’s War

      The U.S. Navy sends a missile-armed destroyer close to one of those Chinese-occupied islands just about every few weeks. It’s what the U.S. high command likes to call “showing the flag” or demonstrating America’s resolve to remain a dominant power in that distant region (though were the Chinese to do something similar off the U.S. West Coast it would be considered the scandal of the century and a provocation beyond compare). Just about every time it happens, the Chinese authorities warn off those ships or send out their own vessels to shadow and harass them.

      On May 6th, for example, the U.S. Navy sent two of its guided-missile destroyers, the USS Preble and the USS Chung Hoon, on a FRONOPS mission near some of those islands, provoking a fierce complaint from Chinese officials. This deadly game of chicken could, of course, go on for years without shots being fired or a major crisis erupting. The odds of avoiding such an incident are bound to drop over time, especially as, in the age of Trump, U.S.-China tensions over other matters — including tradetechnology, and human rights — continue to grow. American military leaders have clearly been strategizing about the possibility of a conflict erupting in this area for some time and, if Admiral Davidson’s remark is any indication, would respond to such a possibility with considerably more relish than most of them do to a possible war with Iran.

      Yes, they view Iran as a menace in the Middle East and no doubt would like to see the demise of that country’s clerical regime. Yes, some Army commanders like General Kenneth McKenzie, head of the U.S. Central Command, still show a certain John Bolton-style relish for such a conflict. But Iran today — weakened by years of isolation and trade sanctions — poses no unmanageable threat to America’s core strategic interests and, thanks in part to the nuclear deal negotiated by the Obama administration, possesses no nuclear weapons. Still, can there be any doubt that a war with Iran would turn into a messy quagmire, as in Iraq after the invasion of 2003, with guerrilla uprisings, increased terrorism, and widespread chaos spreading through the region — exactly the kind of “forever wars” much of the U.S. military (unlike John Bolton) would prefer to leave behind?

      How this will all play out obviously can’t be foreseen, but if the U.S. does not go to war with Iran, Pentagon reluctance may play a significant role in that decision. This does not mean, however, that Americans would be free of the prospect of major bloodshed in the future. The very next U.S. naval patrol in the South China Sea, or the one after that, could provide the spark for a major blowup of a very different kind against a far more powerful — and nuclear-armed — adversary. What could possibly go wrong?

    • "Nervous Nancy" Pelosi Slams Trump's "Temper Tantrum" Tariff Win With Mexico

      The President’s resolution to the impromptu Mexican tariff war that “popped up” last week was ridiculed and slammed by Nancy Pelosi on Saturday morning. The House Speaker put out a statement claiming that President Trump had “undermined America’s preeminent leadership role in the world” by threatening Mexico. 

      She continued: “We are deeply disappointed by the Administration’s expansion of its failed Remain-in-Mexico policy, which violates the rights of asylum seekers under U.S. law and fails to address the root causes of Central American migration. Threats and temper tantrums are no way to negotiate foreign policy.”

      It’s the first anyone has heard from Pelosi since President Trump called her “a disgrace to herself and her family” after she reportedly told Democrats earlier in the week that Trump should be “in prison”.

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      Trump also referred to her as a “disaster” and a “nasty, vindictive” person while at a D-Day memorial event in Normandy, France. Pelosi was also in France to mark the 75th anniversary of D-Day but declined to respond to Trump while there, telling reporters it was “on principle”. 

      We reported yesterday that Trump’s tariff threat to Mexico appeared to work exactly as he wanted it to. 

      “I am pleased to inform you that The United States of America has reached a signed agreement with Mexico,” President Trump tweeted Friday. “The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended.”

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      Trump had announced the tariff threat in response to a surge in illegal migration to the U.S. through Mexico this year. More than 144,000 people were apprehended after illegally crossing the southern border in May or were refused entry to the U.S.  Mexico has agreed to “strong measures to stem the tide of Migration through Mexico, and to our Southern Border,” Trump wrote, although is subsequent announcement that Mexico had agreed to “immediately begin buying large quantities of agricultural product from our great patriot farmers” has prompted much confusion from Mexico, which Bloomberg reported today never agreed to that.

    • Rates, Time, & Gold – The Last Thing Central Bankers Want To See

      Authored by Alasdair Macleod via GoldMoney.com,

      The interest rate fallacy

      There is a widespread assumption that interest rates represent the cost of borrowing money. In the narrow sense that it is a rate paid by a borrower, this is true. Monetary policy planners enquire no further. Central bankers then posit that if you reduce the cost of borrowing, that is to say the interest rate, demand for credit increases, and the deployment of that credit in the economy naturally leads to an increase in GDP. Every central planner dreams of consistent growth in GDP and they seek to achieve it by lowering the cost of borrowing money.

      The origin of this approach is mathematical. William Stanley Jevons in his The Theory of Political Economy, first published in 1871, was one of the three discoverers of the theory of marginal utility and became convinced that mathematics was the key to linking the diverse elements of political science into a unified subject. It was therefore natural for him to treat interest rates as the symptom of supply and demand for money when it passes from one hand to another with the promise of future repayment.

      Another of the discoverers of the theory of marginal utility was the Austrian, Carl Menger, who explained that prices were subjective in the minds of those involved in an exchange. He argued it was fundamentally a human choice and therefore could not be predicted mathematically. This undermines the assumption that interest is simply the cost of money, suggesting that some sort of human element is involved, separate from pure cost. Eugen von Böhm-Bawerk, who followed in Menger’s footsteps saw it from a more capitalistic point of view, that a saver’s money, which was otherwise lifeless, was able to earn a saver a supply of goods through interest earned upon it.

      Böhm-Bawerk confirmed interest produced an income for the capitalist and was a cost to the borrowing entrepreneur, but agreed with his mentor there was also a time preference element, the difference in the value of possessing money today compared with the promise of possessing it at a future date. The easiest way to understand it is that savers are driven mainly by time-preference, while borrowers mainly by cost. This was why borrowers had to bid up interest rates to attract savers into lending, the explanation for Gibson’s paradox.

      In those days, money was gold, and currencies were gold substitutes, that is to say they circulated backed by and freely exchangeable into gold. Gold was the agency by which producers turned the fruits of their labour into the goods and services they needed and desired. Its role was purely temporary. Temporal men valued gold as a good with the special function of being money, but as a good, its actual possession was worth more than just a claim on it in the future. But do they ascribe the same time preference to fiat currency? To find out we must explore the nature of time preference as a concept.

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      Time-preference in classical economics

      Time-preference is simply the desire to own goods at an earlier date rather than later. This is because everyone prefers immediate ownership to the promise of future ownership. Therefore, the future value of possessing a good must stand at a discount compared with actual possession, and the further into the future actual ownership materialises, the greater the discount. This is time preference. But instead of pricing time preference as if it were a zero-coupon bond, we turn it into an annualised interest equivalent.

      Obviously, time-preference applies primarily to lending to finance production, which requires time between commencement and output. Borrowed money must cover partly or in whole the commodities and all the costs required to make a finished article and the time taken to deliver it to an end-user. An entrepreneur must forgo some of his current consumption if he is to invest in his own production, and the allocation he makes of his current resources to that end is governed partly by time-preference and by the profit he anticipates. If his production process requires a long time between investment and the sale of a finished product his sacrifice of current consumption will be for proportionately longer, so it has to be worthwhile.

      The easiest way to isolate time-preference is to assume our entrepreneur has to borrow some or all the resources necessary. We now have to consider the position of the lender, who is asked to join in with the sacrifice of current consumption in favour of the future. The lender’s motivation is that he has a surplus of money to his immediate needs and instead of just sitting on it, is prepared to use it profitably. His reward for doing so by providing the utility of his excess to a businessman must exceed his personal time-preference.

      The medium for matching investment and savings is obviously money, because it would be very difficult to coordinate them in a barter economy. It is this function above all else which money facilitates. We take this obvious function so much for granted that we forget that interest rates are actually the expression of time-preference, which has its origin in deferring ownership of consumer goods. Intermediation by banks and other financial institutions conceal from us the link between interest and time-preference, on the saver’s false assumption he is not parting with his money by depositing it in a bank.

      The bank appears to be giving the depositor something for nothing in its role as financial intermediator, but it is effectively cutting the link between savers and borrowers. Both parties in a modern economy end up dealing with a bank instead of each other. However, despite a bank’s intermediation, the basic relationship between saver and entrepreneur through a bank is the possession of the former’s capital for a period of time. It may conceal it, but it cannot get rid of time-preference.

      When a saver saves and an entrepreneur invests, the transaction always involves a lender’s savings being turned into the production of goods and services with the element of time. For the lender, the time preference will always equate to the loss of possession of his capital for a stated period.

      Time preference and fiat money

      Today’s economists do not recognise time-preference. For them, economics is about Jevon’s mathematics, state-issued currencies and the exclusion of human interest. They say we have moved on from the household economics of yester-year, and they despise classical stick-in-the-muds. But we can see from their repeated failure to tame human action in order to conform to their economic models that modern economists do not have the answers either. All they have done is cover up their failures through monetary inflation.

      The ubiquity of unbacked state currencies certainly introduces new dimensions into prices and deferred settlement. Not only is the saver isolated from borrowers through bank intermediation and the belief his deposits are still his property, but his savings are debased through monetary inflation without his knowledge. The interest he expects is treated as an inconvenient cost of production, to be minimised. Interest earned is taxed as if it were the profit from a capitalist trade, and not compensation for a temporary loss of possession.

      Consequently, the saver has been driven to speculate well beyond the possibility of not being repaid by a borrower by buying equities instead. He swaps credit risk for entrepreneurial risk. And because the expansion of bank credit out of thin air favours the entrepreneur over the saver, the theory goes that over time he is compensated for the loss of interest. The whole system has changed, and even consumers, who under the classical economic model would defer some of their consumption, have become unsecured borrowers themselves.

      It is this evolution away from the strictures of time preference that has taken us to zero and negative interest rates. Yet, if the cost of money was simply its interest rate, the economy would be permanently mended and there would be no credit cycle. Why on earth it took the planners so long to understand the benefits of free money, and to even pay borrowers to borrow, would have been a mystery. Yet, experience and an understanding that economics is a human science tells us otherwise. Despite handing out free money, the Eurozone is in a worse economic and systemic condition than it was before the Lehman crisis ten years ago, with major bank share prices languishing at all-time lows. And all zero interest rates have achieved, together with aggressive monetary debasement, was the deferment of a banking and systemic crisis.

      But credit cycles still exist. At their root is the issuance of money and credit on terms that do not reflect time preference. The value of ownership compared with the promise of future ownership has to be respected. It is not something a monetary planner can decide, because it is wholly a market phenomenon. No one but individual consumers can contribute to the collective judgments that say this any species of bird is worth more than two of them in the bush.

      Ignoring time preference is the fundamental error behind monetary planning. It is why in a successful economy, monetary intervention by the state is kept to a bare minimum, or preferably banished altogether. Instead, it builds on the error of Jevon’s mathematical approach and the banishment of the people’s choice of money, which throughout history has been metallic.

      Gold

      The question now arises over the relationship between time-preference and gold. We should consider this in the light of historical experience; fiat currency has always died and been replaced by metallic money. Gold and likely silver as well will return to circulate as money.

      When gold is used as money, time-preference obviously applies, given our rule that money is earned and saved on the one hand, and on the other savings are deployed in the production of goods and services. A saver lending his gold will expect it to be returned at the end of the loan period with an additional amount to reflect at a minimum his time-preference, usually in the form of interest.

      Apart from isolated times of monetary debasement, this held true for millennia until the last century, when gold was gradually replaced as money in today’s currency system. As long as currency acted as a freely convertible gold substitute, interest earned and paid on that currency was tied to the rate on gold. However, if we can imagine a system with both gold and fiat currency in circulation as money at the same time, the time-preference for physical gold, all other things being equal, should be more than that for the fiat currency due to its relative scarcity.

      Evidence of this difference is reflected in Gresham’s law. Most of the human population spends state-issued currency more readily than gold coin. The argument about today’s traders not accepting gold coin does not hold water, because gold coin is easily converted into fiat money in order to spend it. Those who own gold or gold coin see its disposal for fiat money not as a first, but as a last resort. Furthermore, if someone wanted to borrow your gold for a period of time, you would almost certainly place a greater value on the temporary loss of ownership than that reflected in the interest rate for fiat currency.

      But this supposition ignores monetary inflation. Over history, the expansion in above-ground gold stocks has roughly kept pace with the growth in human population. Fiat currency expands without limitation, and the loss of purchasing power should be taken into account in any calculation of time preference. The fact that this is not reflected in interest rates is a function of central bank suppression of markets and the concealment of time-preference through bank intermediation.

      The last thing central bankers would like to see is value given to time preference. Most of them are probably unaware of its existence, being immersed in the mathematical economics of Jevons and his successors. And when the general public wake up to the suppression of time-preference and therefore the mispricing of all future goods and services, the consequences will almost certainly be astonishing.

    • Visualizing How Different Generations Approach Work

      The first representatives of Generation Z have started to trickle into the workplace – and like generations before them, they are bringing a different perspective to things.

      Did you know that there are now up to five generations now working under any given roof, ranging all the way from the Silent Generation (born Pre-WWII) to the aforementioned Gen Z?

      Visual Capitalist’s Jeff Desjardins shows how these generational groups differ in their approaches to communication, career priorities, and company loyalty.

      Generational Differences at Work

      Today’s infographic comes to us from Raconteur, and it breaks down some key differences in how generational groups are thinking about the workplace.

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      Let’s dive deeper into the data for each category.

      Communication

      How people prefer to communicate is one major and obvious difference that manifests itself between generations.

      While many in older generations have dabbled in new technologies and trends around communications, it’s less likely that they will internalize those methods as habits. Meanwhile, for younger folks, these newer methods (chat, texting, etc.) are what they grew up with.

      Top three communication methods by generation:

      • Baby Boomers:
        40% of communication is in person, 35% by email, and 13% by phone

      • Gen X:
        34% of communication is in person, 34% by email, and 13% by phone

      • Millennials:
        33% of communication is by email, 31% is in person, and 12% by chat

      • Gen Z:
        31% of communication is by chat, 26% is in person, and 16% by emails

      Motivators

      Meanwhile, the generations are divided on what motivates them in the workplace. Boomers place health insurance as an important decision factor, while younger groups view salary and pursuing a passion as being key elements to a successful career.

      Three most important work motivators by generation (in order):

      • Baby Boomers:
        Health insurance, a boss worthy of respect, and salary

      • Gen X:
        Salary, job security, and job challenges/excitement

      • Millennials:
        Salary, job challenges/excitement, and ability to pursue passion

      • Gen Z:
        Salary, ability to pursue passion, and job security

      Loyalty

      Finally, generational groups have varying perspectives on how long they would be willing to stay in any one role.

      • Baby Boomers: 8 years

      • Gen X: 7 years

      • Millennials: 5 years

      • Gen Z: 3 years

      Given the above differences, employers will have to think clearly about how to attract and retain talent across a wide scope of generations. Further, employers will have to learn what motivates each group, as well as what makes them each feel the most comfortable in the workplace.

    • The Los Angeles Disease Renaissance: Typhoid & Typhus Make A Comeback

      Authored by Sarah Cowgill via LibertyNation.com,

      As the homeless population in Los Angeles grows, so does the unfortunate revival of many third world diseases…

      Despite hundreds of millions of dollars flowing through Los Angeles to stem the rising tide of homelessness, a resurgence of medieval diseases has the city – and neighboring states – on edge. Typhoid fever and typhus, borne by fleas, body lice, and feces, are turning the once glitzy and glamorous city into a third-world worthy environment.

      Yes, Typhoid Mary is back, in a sense, living on the streets and wreaking havoc on unsuspecting people in the Golden State.

      These diseases, along with an uptick in tuberculosis, hepatitis A, and staph, are easily and rapidly spread and have wide-reaching consequences. They’re highly contagious and can infect anyone through casual contact.

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      Typhoid fever

      An LAPD officer was recently diagnosed with typhoid, and several other city employees are exhibiting the classic symptoms of high fever, muscle pain, and weakness.  Left untreated, the disease can be fatal – and let’s face it: The malady wiped out entire populations during the Dark Ages and took a heavy toll on American Civil War soldiers and early American settlers.  Some historians blame the malaise for obliterating the Jamestown settlement.

      Where The Heck Did They Come From?

      Los Angeles Homeless Services Authority recently released a report showing 59,000 people living on the streets in Los Angeles County – a 12% increase since 2018 – with 36,300 of them within the city limits of Los Angeles.  The U.S. Department of Housing and Urban Development (HUD), reports that “California accounted for 30% of all people experiencing homelessness as individuals” throughout the United States.

      The progress of these once eradicated and near eradicated diseases is so alarming that the politicians who once spent copious amounts of time covering up the warts and putrid pustules in their liberally run cities and state are now showing disbelief and disgust.

      California Governor Gavin Newsom (D) broke his silence during his state of the state speech in February: “Our homeless crisis is increasingly becoming a public-health crisis. Typhus, a medieval disease. In California. In 2019.”

      Los Angeles Mayor Gil Garcetti (D), who many believed would be a 2020 presidential contender, calls the crisis, “the biggest heartbreak for me and my city.”  Garcetti campaigned extensively for the initiative known as Proposition HHH, which designated $1.2 billion over the next ten years to build homeless housing.  But now residents are howling about the pricey plan’s abject failure.  One local L.A. news outlet polled residents and found that “Forty-five percent said it’s failing, with 18 percent saying it’s a complete failure.”

      Voters passed Propositions 47 (2014) and 57 (2016), downgrading theft and drug offenses to misdemeanors and redefining many felonies from violent to nonviolent to release a horde of inmates – some addicted to drugs and suffering from now untreated mental illness.

      And they wonder why there are so many people on the streets living, sleeping, and breathing surrounded by urine-soaked sidewalks and piles of human feces?  And, of course, they don’t have to show symptoms to carry and transfer these diseases – simple casual contact from a carrier will do just fine.

      Asymptomatic Mary Mallon was presumed to have infected over 50 people between 1907 and 1915, yet never experienced a day of sickness.  She died under quarantine – from complications of a stroke, not typhoid.  Her body was cremated and her ashes interred, but her legacy as Typhoid Mary lives on.

      What’s The Plan?

      Garcetti is doubling down on his homeless housing project, but his highest hurdle is his choice for building sites.  It seems no Angeleno wants drugs, typhus, and hepatitis bubbling and festering on their own block.  A short story made long, aside from Proposition HHH, there is no solid plan to curb the worsening rotting of Los Angeles.

      There is a long-held belief that two American presidents succumbed to Typhoid.  The ninth Commander in Chief, William Henry Harrison, is remembered to have died of pneumonia after only 31 days in office, but recent studies suggest he likely died from typhoid.  Number 12, President Zachary Taylor, was most likely felled from the disease as well – due to the unsanitary conditions in the Swamp in the mid-19th century.

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      Ironically, the only thing that seems to have changed in Washington D.C. is that the deadly infections are in the heart and soul and not the body of the toadies on the Hill.

      Here we are in the throes of the 21st century with running water, inoculations for just about every known malady of the last millennia, and welfare programs to heal the poorest of our citizens.  Yet Los Angeles remains a hot, malodorous, infectious mess – and it could be spreading toward a city near you.

    • Boston Dynamics To Start Selling Creepy Robot Dogs

      Boston Dynamics will begin selling its creepy robot dogs to the public “within months,” according to CEO Marc Raibert, who told The Verge “We’re just doing some final tweaks to the design” after “testing them relentlessly” – hopefully to obey the three laws of robotics

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      Spot is currently being tested in a number of “proof-of-concept” environments, Boston Dynamics’ CEO Marc Raibert told The Verge, including package delivery and surveying work. And although there’s no firm launch date for the commercial version of Spot, it should be available within months, said Raibert, and certainly before the end of the year. –The Verge

      Raibert brought the company’s ‘Spot’ dogs to Amazon’s Re:MARS conference in Las Vegas this week, an event focused on machine learning, advanced robotics and space exploration. On the first day of the event, two Boston Dynamics employees trotted out a pair of Spots to dazzle the crowd, and freak out a police dog (until a toy offering was deemed sufficient for friendship). (photos via The Verge)

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      One Spot robot mounted with 3D cameras can map their environment and perform tasks such as track worker progress or identify hazards at construction sites. Models equipped with a robot arm can also open doors and manipulate objects. 

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      Despite minor technical difficulties, the event went well for Boston Dynamics – owned by Japan’s SoftBank. One thing was clear; these dogs are really easy to control

      Using a D-pad, you can steer the robot as you would any RC car or mechanical toy. A quick tap on the video feed streamed live from the robot’s front-facing camera lets you select a destination for it to walk to, and another tap lets you assume control of a robot arm mounted on top of the chassis. It all feels very intuitive. –The Verge

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      According to Raibert, Boston Dynamics will be selling “athletic intelligence” through its robots. 

      Think of it like Amazon’s AWS business, but instead of offering computing power on tap, its robotic mobility.

      The vast majority of bots in use in warehouses and factories today are only able to perform rote tasks, planned in advance down to the millimeter. But if robots are going to work alongside humans in more dynamic environments, they need to be able to react to hazards and changing conditions. These are eminently humans skills: tasks we complete without thinking — like catching a ball — but that stump all but the most advanced bots.

      Onstage, Raibert demonstrated these skills by showing a video of Spot robot being frustrated in its attempts to open a door. The robot grapples at the door handle only to be shoved away by an engineer with a hockey stick. “We think this is one of the most important things we do,” said Raibert. “The [robots] can tolerate deviance around expected behavior.” –The Verge

      At present, several construction companies in Japan are testing Spot to oversee the work progress on sites. “There’s a remarkable number of construction companies we’re talking to,” said Raibert, adding “But we have some other applications that are very promising — [including] in hostile environments where the cost of having people there is high.”

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    • Doug Casey On What Happens After The Next War

      Via InternationalMan.com,

      International Man: The US government is actively at war in about half a dozen countries. It’s eyeing new conflicts all the time.

      On the topic of getting involved in another war… President Trump was reported to have said this about his National Security Advisor John Bolton: “If it was up to John, we’d be in four wars now.”

      What do you make of all this?

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      Doug Casey: Where to start?

      Well, first of all, things are out of control. The US Government has become so big, so dysfunctional, and with its fingers in so many pies that anything can happen, unpredictably. Secondly, it’s extremely dangerous. Prodding lots of hornet’s nests guarantees you’ll be stung—perhaps enough to put you in the hospital. Third, it’s extraordinarily expensive. And the US Government is already bankrupt.

      As you pointed out, the US is actively at war in right now in who knows how many countries – including at least a half a dozen in Africa that nobody can find on a map. There are combat troops in probably 100 countries around the world. There are probably 800 bases around the world. These things are all just trip wires waiting for an accident or an incident to draw the country into a real war. So far—at least since the misadventure in Vietnam – the US has just engaged in trouble-making exercises and sport wars. But the big thing on the horizon right now is Iran. This is hunting big game.

      One of the things that I most regret not having done in recent years was taking advantage of an all-expense paid junket, courtesy of the Iranian Ambassadors’ Polo Club, for the New Zealand Ambassadors’ Polo Club, of which I was member. It would have been wonderful to have seen three of the major Iranian cities and met some of the top people in the country while playing polo. I couldn’t do it though, because I was injured at the time.

      The Iranian people have no negative animus towards the American people. The average Iranian likes the average American. He likes American cars, American music, American movies, American culture. He likes California girls. He likes everything about America.

      The way to change that and turn the average Iranian into an enemy is to send uniformed American teenagers there to destroy property and kill people. That’s exactly what morons like John Bolton and Mike Pompeo are talking about. It could be a real catastrophe, because Iran is big game. It’s not like hunting small game, like Iraq, Afghanistan and Syria—which themselves were terrible catastrophes.

      If this gets out of control – accidentally, or through a false flag incident, or simply because Bolton decides it’s a good idea – you could be looking at the start of World War III.

      The “powers that be” think that war stimulates the economy. But the idea is complete nonsense. These fools actually believe turning lots of cities into smoking ruins would stimulate the economy.

      International Man: The US government and mainstream media often justify these wars on the need to “spread democracy.” What do you make of that?

      Doug Casey: The idea of spreading democracy is a snare and a delusion. Democracy has become the new societal god. In fact—and I know most readers will be appalled to hear this—democracy is a bad idea. At least for anything larger than a city-state with a small, cohesive population.

      First of all, democracy is simply mob rule dressed up in a coat and tie. It’s where a bunch of people—who are marginally competent at running their own individual lives—go to a voting booth to have what H.L. Mencken termed “an advance auction on stolen goods.” Democracy usually winds up turning the State into a vehicle for theft, and making that seem like a good and moral thing…

      Democracy—a gentler form of mob rule—is not a good thing. It politicizes the average person and distracts him from running his own life. It focuses his attention on trying to run other people’s lives through elected representatives. Worse, the elected representatives aren’t the best and the brightest. They’re generally sociopaths who are drawn to power. They’re the worst kind of people, the kind that want to rule other people by winning a popularity contest. This is true in the US and every other place where ballot boxes are used to determine the new ruler.

      The winner of an election is typically the most skilled liar. Look at what president Wilson did by pointlessly drawing the US into WWI, while claiming to do the opposite. He said it was all about making the world safe for democracy. In fact, he initiated the long decline of Western Civilization. The French Revolution was based on democracy. It didn’t work out very well. It had a lot to do with democracy—but had nothing to do with freedom. Democracy and freedom are typically at odds with each other.

      International Man: Aside from the claim of promoting democracy, the US government and mainstream media also use alleged human rights abuses as a justification for war. The term “human rights” seems to be vaguely defined and inconsistently applied. It seems like more sophistry. What’s really going on here?

      Doug Casey: Let me first say, the most important “human right” is simply to be left alone by other people, to be left in peace. Whenever a government gets involved in people’s private affairs it makes things worse. The US government is actually the greatest danger to both world peace and human rights today. It’s quite Orwellian the way most Americans have been propagandized into believing the opposite, like the citizens of Oceania in 1984.

      The best thing to do with foreign countries is leave them alone to work things out themselves. You cannot change a culture. When you try to change a culture, you generally wind up with chaos. That’s what the US government has created in Syria, Afghanistan, Libya, Iraq, and everywhere else it sticks its nose.

      International Man: So, do these wars provide a net benefit to the average American?

      Doug Casey: No. There’s no benefit at all. The correct U.S. foreign policy is to withdraw all the troops from everywhere in the world. Foreigners don’t want to see American troops on their land any more than Americans would like to see Iranian, or African, or Korean troops parading through the streets and maybe breaking down doors at 3:00 AM. That’s the first thing. If you want to “support the troops” bring all the troops home.

      The next step is to cut off all foreign aid, which is really just a transfer program of about $50 billion per year from poor people in the US to rich people in poor countries. It’s almost all skimmed by cronies.

      People forget that Osama bin Laden said that he only wanted three things.

      First, he wanted infidel soldiers out of the homeland of the prophet, a reasonable request.

      Second, he wanted the US to stop replacing Middle Eastern leaders with quislings, and interfering with local politics. Another reasonable request. The US has no more right to interfere in the politics of Middle Eastern countries than Mohammedans would interfering in US politics.

      Third, he wanted the US to stop supporting Israel. Once again, a very reasonable request. We should be friendly towards all, but shouldn’t get involved in other people’s local squabbles, regardless of who we think is the good guy or the bad guy at the moment.

      Of course, my saying something Osama bin Laden said was reasonable is like saying something that Hitler said was reasonable. But it doesn’t matter who says something. The facts should speak for themselves. And—just to head off hysterics—no, I neither like nor support either Osama or Adolf.

      International Man: US foreign policy has serious domestic consequences. After all, “War is the health of the State” as Randolph Bourne said.

      Specifically, the rapid rise of the domestic surveillance apparatus, the curtailments of civil liberties, and the turbocharging of militarized local police forces… they’re all connected to US foreign policy.

      Related to all this is the inane expression “if you have nothing to hide, you have nothing to fear.” What do you make of all of this?

      Doug Casey: Well, if that’s true then John Bolton, Mike Pompeo, and the rest of the apparatchiks around the DC Beltway should be happy to post their tax returns on the internet, and have microphones and cameras in every room of their houses. They ought to be perfectly happy when they’re having a private conversation in their living room to have it available to anybody that wants to listen.

      The ability to maintain privacy is one thing that separates civilized men from primitives living in mud huts. In a primitive society you have zero privacy, because your neighbors can see and hear absolutely everything that goes on through the paper-thin walls of your hut. Privacy is something that grows with civilization. These people have everything exactly backwards. They’re not just anti-freedom. They’re anti-civilization. They’re the same basic personality type as Stalin, or Ceausescu, or Pol Pot.

      International Man: Another arena that has been drastically affected is the airports and the creation of a new federal bureaucracy, the TSA. Thanks to the TSA, everyone knows that “if you see something say something.” That saying is actually a registered trademark of the Department of Homeland Security.

      Doug Casey: It’s Orwellian. It’s the type of thing Big Brother would advise you to do… to report your neighbors to the State for any real or imagined offense.

      One time I was in a line that was snaking back and forth at immigration. My briefcase weighed about 25 pounds, so I put it down and left it for about 15 feet so I could pick it up when the line snaked back.

      Not once, but twice, somebody looked around like a righteous busybody citizen and said, “Unattended baggage! Unattended baggage!”

      These people are really just chimpanzees. They picked up this behavior from the government… monkey see, monkey do. I said to them sarcastically “See something, say something”, but they didn’t think I was kidding. They thought I approved of what they were doing.

      International Man: Do you see this degraded behavior in other places?

      Doug Casey: Of all the countries in the world that I’ve traveled to—including backwards hell holes in Africa, Russia, China, it doesn’t matter—going through the US immigration, customs, and TSA, probably provides the most degrading experience. None of these other countries ask you the kinds of questions or seem so anxious to go through your laundry. Although Canada and Australia in particular are closely following the US lead.

      The average American has been propagandized into thinking that he lives in the land of the free. As a matter of fact, that’s no longer true.

      The US has descended from being a shining beacon—that really was exceptional and different from every other country in the world—to being just another nation state. But, perversely, one that thinks it’s still exceptional. It’s paranoid. It thinks it’s under attack, when actually it’s the attacker.

      The whole thing is upside-down, and the average American has absolutely no clue.

      It’s really shameful that the US has turned into both a welfare state—with about 50% of the population reliant upon the government—and a warfare state. We’re getting the worst of both worlds.

      The problem is that when the economy turns down—and it will before Trump leaves office—it’s going to go from being depressing to scary. And if they start a major war, it’s going to go all the way to terrifying, because at that point you won’t have any rights. The average American will approve of it, however. Your life and property are be

      *  *  *

      Many people don’t realize that the US is on the precipice of a major war in the Middle East. It’s a conflict that could see oil prices skyrocket overnight… and the return of gas lines to America. It wouldn’t be the first or even second time an oil shock like this has happened. It would have profound economic consequences.

      This is one reason why a financial crisis far greater than any crisis America has seen could soon strike. For some it could completely wipe out their savings… and for others it could be the fortune-building opportunity of a lifetime. Doug Casey and his team just released an urgent video on surviving and thriving during an economic collapse. Click here to watch it now.

    • Iran Blasts "Deceitful" Pompeo, Calls New Sanctions An "Act Of Economic Terrorism"

      Pompeo’s words were “deceitful, untrue and merely in service of appealing to the public opinion,” blasted Abbas Mousavi, a senior Iranian diplomat, after Washington imposed sanctions against Iranian petrochemical companies despite an earlier promise of negotiations without preconditions.

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      On Friday, the US Treasury announced it has imposed a new wave of sanctions against Iranian energy businesses. The move is meant to stifle the revenues of the elite Islamic Revolutionary Guard Corps (IRGC), which Washington declared a terrorist organization earlier in April.

      This infuriated Iran’s foreign minister, who, as RT reports, exclaimed that this proves that US Secretary of State Mike Pompeo made an empty promise to Tehran less than a week ago, when he said he was ready to start “a conversation with no preconditions.”

      “Only one week was needed for the US president’s claim that he was ready to negotiate with Iran to be proven hollow.”

      America’s maximum pressure policy is a failed policy tried numerous times before by the country’s previous presidents. This is a wrong path and the US government can be sure that it will not achieve any of the goals set for this policy,”

      He called the sanctions an act of “economic terrorism” and said Tehran will not yield to Washington’s pressure.

      “All countries have a responsibility to react against the flagrant violations of the fundamental principles of international law and not to allow the international community’s achievements in multilateralism to be further ruined by the bullying and unilateral actions of the American governing body,” Mousavi said.

      Of course, we wonder how many of these words were prompted by John Kerry’s guiding hand.

    • What Will The E-Verify Program Be Used To Surveil Next?

      Authored by David Bier via Cato.org,

      E-Verify is the federal government’s attempt to create an electronic national identification system. It is capable of checking government databases to verify information—often including a photo—on every U.S. resident. Right now, the system monitors only employment and is only mandatory in some states, ostensibly to deter illegal immigration, but nothing would prevent lawmakers from expanding E-Verify to monitor identity or legal status in any other domain and restrict access based on other criteria they want.

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      Numerous federal, state, and local laws already require people to identify themselves or prove their immigration status, and lawmakers continue to propose many additional laws. The more areas that E-Verify is used to monitor, the more it will create a digital record of Americans’ lives—a record that lawmakers can draw upon to add further requirements for access to jobs, health care, banks, gun sales, housing, and much else.

      Once E-Verify becomes fully mandatory for employment nationwide, proponents will seek to use it to enforce other laws. In 2015, the GOP-controlled House Judiciary Committee even voted down an amendment to a mandatory E-Verify bill that would have banned using E-Verify for purposes other than employment. This is a harbinger that the E-Verify system, if mandated federally, could be used to monitor much more than just American’s employment choices. Congress would need only make a few tweaks to the system to make it serviceable for other goals beyond jobs.

      Here are a few likely targets:

      1. Gun sales: The Brady Handgun Violence Prevention Act (18 U.S. Code § 922(d)(5)and (g)(5)) explicitly makes it unlawful for:

      any person to sell or otherwise dispose of any firearm or ammunition to any person knowing or having reasonable cause to believe that such person … who, being an alien— (A) is illegally or unlawfully in the United States; or (B) except as provided in subsection (y)(2), has been admitted to the United States under a nonimmigrant visa.

      Unlike the criminal background check system for guns which destroys the electronic record of the sale daily, E-Verify maintains records for 10 years. Once E-Verify screens gun purchases, the federal government would have a full electronic registry of all gun purchases. To do this, a future Congress would only need to enact a statute requiring the Department of Homeland Security to make the system available to verify legal status information (rather than just employment authorization) for gun sales. 

      2. TransportationSection 274 of the Immigration and Nationality Act (8 U.S.C. 1324(a)(1)(A)(ii)) criminalizes anyone who “knowing or in reckless disregard of the fact that an alien has come to, entered, or remains in the United States in violation of law, transports, or moves or attempts to transport or move such alien within the United States.” While courts have not enforced this requirement against routine transportation activities, requiring airlines, buses, trains, or other transportation businesses to use E-Verify would be a logical (while burdensome) means to enforce this provision.

      3. Driver’s licensesSection 202(c)(2) REAL ID Act of 2005 requires that states verify that the applicant has some form of legal status. State IDs not meeting this requirement will not be valid for any federal purposes, including air travel. In addition, 38 states separately ban illegal immigrants from receiving driver’s licenses and even those who do permit driver’s licenses specifically identify the license as not valid for federal identification purposes.

      4. Bank accounts: Federal law doesn’t require banks to verify someone’s immigration status to open an account, but the USA Patriot Act does require them to “verify the identity of each customer, to the extent reasonable and practicable, within a reasonable time before or after account opening” and “making and maintaining a record of all information obtained relating to customer identity and verification.” Again, E-Verify already purports to verify identity before confirming someone’s employment authorization, so this use would be a fairly straightforward application of the E-Verify system.

      5. Apartment rentals: Though courts prevented their implementation on the grounds that federal law “preempted” them, the state of Alabama as well as the cities of Hazleton, Pennsylvania, Fremont, Nebraska, and Farmers Branch, Texas enacted laws that would have made it explicitly illegal for landlords to rent to illegal immigrants. Tennessee is currently considering a similar state-wide statute. Congress has already enacted a statute (8 U.S.C. 1324(a)(1)(iii)) that criminalizes anyone who “attempts to conceal, harbor, or shield from detection, [an illegal] alien in any place, including any building.” However, courts have interpreted this narrowly to require more than simply renting an apartment, but a future Congress would simply need to clarify that someone who failed to use E-Verify to verify legal status would be guilty of harboring.

      6. Access to certain buildingsThe Legal Workforce Act, which House Republicans have repeatedly passed out of the Judiciary Committee, would authorize owners or operators of “critical infrastructure” to use E-Verify “to the extent the Secretary determines that such use will assist in the protection of the critical infrastructure.”  Federal law defines critical infrastructure to include “systems and assets, whether physical or virtual, so vital to the United States that the incapacity or destruction of such systems and assets would have a debilitating impact on security…”

      Ultimately, E-Verify doesn’t identify illegal immigrants very well at all, and its errors already harmed hundreds of thousands of legal workers attempting to obtain jobs. But the problem with E-Verify is more fundamental. It is the first-step toward a permission-slip society. Creating the infrastructure that is capable of not only monitoring but instantly restricting access to all manner of private activities will hand the government power to control the lives of Americans in ways otherwise unimaginable.

      Once E-Verify use becomes ubiquitous, the federal government (and perhaps state and local governments as well) would have the power to shut down people’s lives overnight for almost any reason. A flip of switch could stop their access to jobs, housing, bank accounts, driver’s licenses, and transportation. No free society should stand for such control.

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    Today’s News 8th June 2019

    • You're Under Arrest: How The Police State Muzzles Our Right To Speak Truth To Power

      Authored by John Whitehead via The Rutherford Institute,

      “History shows that governments sometimes seek to regulate our lives finely, acutely, thoroughly, and exhaustively. In our own time and place, criminal laws have grown so exuberantly and come to cover so much previously innocent conduct that almost anyone can be arrested for something. If the state could use these laws not for their intended purposes but to silence those who voice unpopular ideas, little would be left of our First Amendment liberties, and little would separate us from the tyrannies of the past or the malignant fiefdoms of our own age. The freedom to speak without risking arrest is ‘one of the principal characteristics by which we distinguish a free nation.’

      – Justice Neil Gorsuch, dissenting, Nieves v. Bartlett (2019)

      What the First Amendment protects – and a healthy constitutional republic requires – are citizens who routinely exercise their right to speak truth to power.

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      What the architects of the police state want are submissive, compliant, cooperative, obedient, meek citizens who don’t talk back, don’t challenge government authority, don’t speak out against government misconduct, and don’t step out of line.

      For those who refuse to meekly accept the heavy-handed tyranny of the police state, the danger is all too real.

      We live in an age in which “we the people” are at the mercy of militarized, weaponized, immunized cops who have almost absolute discretion to decide who is a threat, what constitutes resistance, and how harshly they can deal with the citizens they were appointed to “serve and protect.”

      As such, those who seek to exercise their First Amendment rights during encounters with the police are increasingly finding that there is no such thing as freedom of speech.

      This is the painful lesson being imparted with every incident in which someone gets arrested and charged with any of the growing number of contempt charges (ranging from resisting arrest and interference to disorderly conduct, obstruction, and failure to obey a police order) that get trotted out anytime a citizen voices discontent with the government or challenges or even questions the authority of the powers-that-be.

      Merely daring to question, challenge or hesitate when a cop issues an order can get you charged with resisting arrest or disorderly conduct, free speech be damned.

      In fact, getting charged or arrested is now the best case scenario for encounters with police officers who are allowed to operate under the assumption that their word is law and that there is no room for any form of disagreement or even question.

      The worst case scenario involves getting probed, beaten, tasered, tackled, searched, seized, stripped, manhandled, shot, or killed by police.

      This mindset that anyone who wears a government uniform (soldier, police officer, prison guard) must be obeyed without question is a telltale sign of authoritarianism goose-stepping its way towards totalitarianism.

      The rationale goes like this:

      Do exactly what I say, and we’ll get along fine. Do not question me or talk back in any way. You do not have the right to object to anything I may say or ask you to do, or ask for clarification if my demands are unclear or contradictory. You must obey me under all circumstances without hesitation, no matter how arbitrary, unreasonable, discriminatory, or blatantly racist my commands may be. Anything other than immediate perfect servile compliance will be labeled as resisting arrest, and expose you to the possibility of a violent reaction from me. That reaction could cause you severe injury or even death. And I will suffer no consequences. It’s your choice: Comply, or die.

      Indeed, as Officer Sunil Dutta of the Los Angeles Police Department advises:

      If you don’t want to get shot, tased, pepper-sprayed, struck with a baton or thrown to the ground, just do what I tell you. Don’t argue with me, don’t call me names, don’t tell me that I can’t stop you, don’t say I’m a racist pig, don’t threaten that you’ll sue me and take away my badge. Don’t scream at me that you pay my salary, and don’t even think of aggressively walking towards me.

      This is not the attitude of someone who understands, let alone respects, free speech.

      Then again, there can be no free speech for the citizenry when the government speaks in a language of force.

      What is this language of force?

      Militarized police. Riot squads. Camouflage gear. Black uniforms. Armored vehicles. Mass arrests. Pepper spray. Tear gas. Batons. Strip searches. Surveillance cameras. Kevlar vests. Drones. Lethal weapons. Less-than-lethal weapons unleashed with deadly force. Rubber bullets. Water cannons. Stun grenades. Arrests of journalists. Crowd control tactics. Intimidation tactics. Brutality. Contempt of cop charges.

      This is not the language of freedom. This is not even the language of law and order.

      Unfortunately, this is how the government at all levels—federal, state and local—now responds to those who choose to exercise their First Amendment right to speak freely.

      Just recently, in fact, the U.S. Supreme Court issued a ruling protecting police from lawsuits by persons arrested on bogus “contempt of cop” charges (ranging from resisting arrest and interference to disorderly conduct, obstruction, and failure to obey a police order) that result from lawful First Amendment activities (filming police, asking a question of police, refusing to speak with police).

      In Nieves v. Bartlettthe Court ruled 6-3 to dismiss the case of Russell Bartlett, an Alaska resident who was arrested at an outdoor festival for disorderly conduct and resisting arrest after he refused to be interrogated by police and then intervened when police attempted to question other attendees about their drinking. While at a campsite party, Bartlett exercised his First Amendment right to refrain from speaking with a state trooper who was monitoring the event for underage alcohol consumption. Bartlett later intervened after observing another Trooper questioning a fellow camper in what he believed was an improper manner. At one point, one of the troopers reportedly caused Bartlett to stumble, then forced him to the ground, threatened to tase him if he resisted, and arrested him for disorderly conduct and resisting arrest. The charges were later dismissed. Bartlett sued, asserting that he was arrested in retaliation for challenging the Troopers’ authority. Although the Court recognized that people have a right to be free from a retaliatory arrest over lawful First Amendment activities, it ruled that if police have probable cause for the arrest, the person cannot sue for a free speech violation unless they can show that someone else was not arrested for the same actions.

      Another case currently before the Supreme Court, Ogle v. State of Texas, involves the prosecution of a Texas man who faces up to one year in jail and a $4000 fine for sending emails to police criticizing them for failing to respond to his requests for assistance. Scott Ogle was charged with sending complaints to a sheriff’s office, including one email stating that officials were “pissing” on the Constitution. The Texas law under which Ogle was charged makes it a crime to send “annoying,” “alarming” or “harassing” electronic messages. The law is so overbroad that it could be used to punish a negative review of a restaurant posted online or caustic Facebook posts.

      In yet another case, a rapper was charged with making terroristic threats after posting a song critical of police on Facebook and YouTube. In refusing to hear the case of Knox v. Pennsylvania, the Supreme Court paved the way for individuals who engage in controversial and unpopular political or artistic expression, by criticizing the police for example, to be labeled terrorists and subject to prosecution and suppression by the government. Police had been actively monitoring rapper Jamal Knox’s (a.k.a. “Mayhem Mal”) social media presence when they discovered the song titled “F**k the Police” and charged Knox and his rap partner with multiple counts of terroristic threats and witness intimidation.

      These cases reflect a growing awareness about the state of free speech in America: it’s all a lie.

      If we no longer have the right to tell a Census Worker to get off our property, if we no longer have the right to tell a police officer to get a search warrant before they dare to walk through our door, if we no longer have the right to stand in front of the Supreme Court wearing a protest sign or approach an elected representative to share our views, if we no longer have the right to protest unjust laws by voicing our opinions in public or on our clothing or before a legislative body, then we do not have free speech.

      What we have instead is regulated, controlled, censored speech, and that’s a whole other ballgame.

      Remember, the unspoken freedom enshrined in the First Amendment is the right to challenge government agents, think freely and openly debate issues without being muzzled or treated like a criminal.

      Protest laws, free speech zones, bubble zones, trespass zones, anti-bullying legislation, zero tolerance policies, hate crime laws, and a host of other legalistic maladies dreamed up by politicians and prosecutors are aimed at one thing only: discouraging dissent and reminding the populace that resistance to the tyranny of the police state is futile.

      Weaponized by police, prosecutors, courts and legislatures, “contempt of cop” charges have become yet another means by which to punish those individuals who refuse to be muzzled.

      Cases like these have become typical of the bipolar nature of life in the American police state today: you may have distinct, protected rights on paper, but dare to exercise those rights and you put yourself at risk for fines, arrests, injuries and even death.

      This is the unfortunate price of exercising one’s freedoms today.

      Yet these are not new developments. We have been circling this particular drain hole for some time now.

      Almost 50 years ago, in fact, Lewis Colten was arrested outside Lexington, Kentucky, for questioning police and offering advice to his friend during a traffic stop. Colten was one of 20 or so college students who had driven to the Blue Grass Airport to demonstrate against then-First Lady Pat Nixon. Upon leaving the airport, police stopped one of the cars in Colten’s motorcade because it bore an expired, out-of-state license plate. Colten and the other drivers also pulled over to the side of the road.

      Fearing violence on the part of the police, Colten exited his vehicle and stood nearby while police issued his friend, Mendez, a ticket and arranged to tow his car. Police repeatedly asked Colten to leave. At one point, a state trooper declared, “This is none of your affair . . . get back in your car and please move on and clear the road.”

      Insisting that he wanted to make a transportation arrangement for his friend Mendez and the occupants of the Mendez car, Colten failed to move away and was arrested for violating Kentucky’s disorderly conduct statute.

      Colten subsequently challenged his arrest as a violation of his First Amendment right to free speech and took the case all the way to the U.S. Supreme Court, which sided with the police.

      Although the Court acknowledged that Colten was not trespassing or disobeying any traffic regulation himself, the majority affirmed that Colten “had no constitutional right to observe the issuance of a traffic ticket or to engage the issuing officer in conversation at that time.”

      The Supreme Court’s bottom line: protecting police from inconvenience, annoyance or alarm is more important than protecting speech that, in the government’s estimation, has “no social value.”

      While the ruling itself was unsurprising for a judiciary that tends to march in lockstep with the police, the dissent by Justice William O. Douglas is a powerful reminder that, in a free society, the government exists to serve the people and not the other way around.

      Stressing that Colten’s speech was quiet, not boisterous, devoid of “fighting words,” and involved no overt acts, fisticuffs, or disorderly conduct in the normal meaning of the words, Douglas took issue with the idea that merely by speaking to a government representative, in this case the police—a right enshrined in the First Amendment, by the way—Colten was perceived as inconveniencing and annoying the police.

      In a passionate defense of free speech, Douglas declared: 

      Since when have we Americans been expected to bow submissively to authority and speak with awe and reverence to those who represent us? The constitutional theory is that we the people are the sovereigns, the state and federal officials only our agents. We who have the final word can speak softly or angrily. We can seek to challenge and annoy, as we need not stay docile and quiet. The situation might have indicated that Colten’s techniques were ill-suited to the mission he was on, that diplomacy would have been more effective. But at the constitutional level speech need not be a sedative; it can be disruptive.

      It’s a power-packed paragraph full of important truths that the powers-that-be would prefer we quickly forget: We the people are the sovereigns. We have the final word. We can speak softly or angrily. We can seek to challenge and annoy. We need not stay docile and quiet. Our speech can be disruptive. It can invite dispute. It can be provocative and challenging. We do not have to bow submissively to authority or speak with reverence to government officials.

      In theory, of course, “we the people” have a constitutional right to talk back to the government.

      The Constitution does not require Americans to be servile or even civil to government officials.

      Neither does the Constitution require obedience (although it does insist on nonviolence).

      In fact, the U.S. Supreme Court concluded as much in City of Houston v. Hill when it struck down a city ordinance prohibiting verbal abuse of police officers as unconstitutionally overbroad and a criminalization of protected speech.

      Unfortunately, the brutal reality of the age in which we live is far different from the ideals set forth in the Bill of Rights: talking back—especially when the police are involved—can get you killed.

      The government does not want us to remember that we have rights, let alone attempting to exercise those rights peaceably and lawfully. And it definitely does not want us to engage in First Amendment activities that challenge the government’s power, reveal the government’s corruption, expose the government’s lies, and encourage the citizenry to push back against the government’s many injustices.

      We’re in deep trouble, folks.

      Freedom no longer means what it once did.

      Not only do we no longer have dominion over our bodies, our families, our property and our lives, but the government continues to chip away at what few rights we still have to speak freely and think for ourselves.

      If the government can control speech, it can control thought and, in turn, it can control the minds of the citizenry.

      Protest laws, contempt of cop charges, and all of the other bogus violations used by cops and prosecutors to muzzle discontent and discourage anyone from challenging government authority are intended to send a strong message that in the American police state, you’re either part of the herd, marching in lockstep with the government’s dictates, or you’re a pariah, a suspect, a criminal, a troublemaker, a terrorist, a radical, a revolutionary.

      Yet by muzzling the citizenry, by removing the constitutional steam valves that allow people to speak their minds, air their grievances and contribute to a larger dialogue that hopefully results in a more just world, the government is creating a climate in which violence becomes inevitable.

      When there is no steam valve—when there is no one to hear what the people have to say, because government representatives have removed themselves so far from their constituents—then frustration builds, anger grows and people become more volatile and desperate to force a conversation.

      As John F. Kennedy warned in March 1962, “Those who make peaceful revolution impossible will make violent revolution inevitable.”

      As I point out in my book Battlefield America: The War on the American People, the government is making violent revolution inevitable.

    • Watch: World's First Raspberry-Picking Robot Completes Field Tasks

      We have spoken on many occasions about the new wave of investments in automation could stimulate the economy after the next economic reset.

      And we have also offered many sobering reminders that robots will likely displace 20% to 25% of current jobs (40 million jobs) by 2030. So, in our search for robots that will take jobs of the bottom 90% of Americans, this week, we have stumbled upon the world’s first raspberry-picking robot.

      According to The Guardian, the new robot can pick upwards of 25,000 raspberries per day, outpacing human workers that pick around 15,000 in an eight-hour shift.

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      University of Plymouth spinout company Fieldwork Robotics is commercializing automation technology that will allow robots to harvest raspberries. With a successful pilot run, the robot could be gearing up to pick other fruits and vegetables.

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      The prototype robot cost $890,000 to develop, can detect ripe fruit with its extensive camera system. Guided by sensors and 3D cameras, it uses picking arms to reach into the bush once the ripe fruit is identified, gently grabs it and plucks it from the bush and drops it into a collection bin.

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      A farm in West Sussex, a county in the south of England, had successfully tested the robot in August 2018. Researchers from the company collected enough data from the trial that will allow the company to push towards commercialization in 2020.

      “We are delighted with the progress Fieldwork is making in developing a raspberry-harvesting robot system,” said Neil Crabb of Frontier IP, a major stakeholder in Fieldwork Robotics. “Completing these field trials is an important milestone in commercializing the technology, and we are looking forward to the next round of tests in the autumn.”

      Separate tests in China have shown the robot can pick tomatoes and cauliflower.

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      The new robot works 20-hour shifts, but one of the biggest challenges for researchers is getting them to adapt to day and night conditions, said Rui Andres, portfolio manager at Frontier IP, one of the investors of Fieldwork.

      Robots promise to raise productivity, at a time when the global economy is cycling down and has become vulnerable to shocks that may cause a global trade recession. On top of that, global demographic issues persist in the developed world, like the US and Europe, where workforces are aging rapidly. Automation will replace millions of people in the coming years, could aid in the recovery of global economies after the next economic downturn.

    • The Pentagon's New Strategy For The Indo-Pacific Region

      Authored by Leonard Savin via Oriental Review,

      On 1 June, the Pentagon officially unveiled its new strategy for the Indo-Pacific region. Although several such documents have been published recently – take the cyber strategy, for example – it had been reported in advance that the Pentagon’s acting head would announce the institutionalisation of yet another area of focus at the Shangri-La Dialogue summit in Singapore during his Asia tour. And that’s what happened, although, given the focus of Patrick Shanahan’s speech, it was clear to everyone that he was primarily talking about curbing China.

      The very notion of an Indo-Pacific region is relatively new and the term only started appearing in doctrine documents last year. As it says in the strategy’s preamble, however, it is the US Department of Defense’s “priority theater”.

      The US began realising its intentions in 2018 with the establishment of the new US Indo-Pacific Command (USINDOPACOM), and at the ASEAN Summit in August of the same year, US Secretary of State Mike Pompeo pledged to provide $300 million to strengthen regional security and counter transnational threats.

      In September 2018, a special military cooperation agreement – the Communications Compatibility and Security Agreement (COMCASA) – was signed with India. It involved the sharing of data, the intensification of joint exercises, and the supply of sensitive US military equipment to India. There is no doubt that the agreement was also aimed at the US establishing a monopoly. Washington was particularly concerned (and still is) about India’s possible purchase of Russian S-400 missile defence systems, as well as other weapons. Then, in December 2018, India opened a maritime information fusion centre with assistance from the US.

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      Adm. Phil Davidson, center, the head of the U.S. Indo-Pacific Command, speaks with the media in Singapore, March 2019.

      As for the new strategy itself, it is telling that the first chapter is dedicated to America’s historic links with the Indo-Pacific region. While its links with the Pacific region are not in doubt – several US states border the Pacific Ocean, the leading role played by Commodore Perry in opening up Japan to the West, the occupation of the Philippines when the country was a Spanish colony, and the events of the Second World War – America’s links with the Indian Ocean are questionable. Does the creation of the hybrid term “Indo-Pacific region” really give America the right to talk about its special interests in relation to this enormous area? The Pentagon and the White House seem to think so.

      The second part of the strategy focuses on trends and challenges, and the People’s Republic of China as a revisionist power is mentioned first. The section covers issues surrounding the disputed territories, the militarisation of a number of islands being claimed by China, the Chinese army’s use of anti-access/area denial (A2/AD) technologies, and the use of economic leverage. However, the US itself regularly uses financial and economic institutions as a method of warfare by other means (the pressure on Huawei and the introduction of new tariffs are two recent examples). As a risk reduction measure, the strategy suggests encouraging China to engage with the US. It states that the US remains open to cooperation in every area in which the interests of both countries align.

      America’s second challenge is Russia, which is described as a “revitalized malign actor”. Regret is expressed that, despite the sanctions imposed on Russia by the West and the slowdown in economic growth, Russia continues to modernise its military, including its nuclear forces, A2/AD systems, and expanded training for long-range aviation. The authors of the strategy conclude that Moscow wants to re-establish its presence in the Indo-Pacific region and carry out global influence activities there to undermine US leadership and the rules-based international order. Yet Russia has always insisted on the supremacy of international law and has urged the US to follow the UN Charter when it comes to resolving conflicts and disputes. The UN is only mentioned here in the context of Russia and China’s joint efforts in the UN Security Council, which the US regards as an attempt to weaken its world domination.

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      The aircraft carrier USS Ronald Reagan sails in waters off Okinawa, alongside a refueling ship, in October 2017

      It is interesting that Ukraine is referred to in the second paragraph, despite it having nothing to do with the region being discussed. The US is also worried about the Russian military’s regular flights near the Sea of Japan and the coast of Alaska. It seems that the Pentagon has a poor grasp of geography and clearly missed the lesson about the distance between the outermost islands of Russia and America being just 4 km, while the Sea of Japan doesn’t just border Japan, but also Russia’s Primorsky Krai.

      Washington is also uneasy about collaboration between Russia and China, both in the economic arena and as regards joint defence initiatives such as the Vostok 2018 military exercise.

      At the end of the section dealing with Russia, the strategy’s authors seem to forget they’re supposed to be talking about the warm waters of the Indian and Pacific oceans and switch their attention to the Arctic. Paradoxically, the Pentagon links Russia’s interests in the extraction of natural resources, as well as the country’s extended continental shelf claim and the development of a Northern Sea shipping route, including with Chinese involvement, to the importance of the Indo-Chinese region! One would think that developing a Northern Sea shipping route would reduce the burden, and therefore any potential conflicts, on traditional sea routes through the Indian and Pacific oceans, but no. Even here, the US sees a threat to its own interests, confirming that Washington is actually interested in maintaining its global domination and controlling the actions of other states.

      America’s top three challenges also includes the Democratic People’s Republic of Korea, which is referred to as a “rogue state”. Like Russia, it is on the list because of its international policies.

      The section is finished off with a list of abstract transnational threats, including terrorism, drug trafficking, piracy, and the illicit arms trade.

      The third section deals with US interests, as well as measures to implement the strategy itself. Acknowledging that Washington cannot address the aforementioned challenges alone, the report states that the US Department of Defense must seek out like-minded allies and partners as a force multiplier for interoperability, “representing a durable, asymmetric, and unparalleled advantage that no competitor or rival can match.” To this end, the US intends to offer its partners various types of interaction in order to “fight and win together.”

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      US defence chief to address Shangri La Dialogue on Indo-Pacific strategy, Singapore, June 1, 2019

      However, the next chapter heading, which is a logical continuation of the previous one, shows that this will all be done to achieve Washington’s regional objectives through America’s sustained influence.

      Operating concepts will be tested, and experiments and exercises will create a “virtuous cycle” that will give rise to additional ideas and innovations. An important point is the stationing of permanent US troops at the bases of its allies.

      Besides US investment in its own installations and training facilities, there are plans to invest in advanced weapons systems in Japan and Australia. The development and forward presence of multifunctional groups will be accelerated. And there are plans to provide strategic deterrence by increasing the number of Columbia-class ballistic missile submarines. The report also refers to the deployment of approximately 400 advanced medium-range air-to-air missiles and more than 400 extended range air-to-surface missiles. In addition, there will be increased investment in the development of unmanned vehicles, long-range anti-ship missiles, and in missile defence systems by deploying the 10 new destroyers included in the programme for 2020–2024. There will also be increased spending on offensive cyber capabilities and on the development of military space forces, from the creation of a doctrine and institutionalisation to the establishment of a space warfighting culture.

      Although the US Indo-Pacific Command currently has more than 2000 aircraft, 200 ships and submarines, and more than 370,000 personnel at its disposal, this is not enough for the Pentagon, and the US military intends to actively engage partners from other countries. The report places particular emphasis on Japan, Guam, South Korea, Australia, the Philippines, Thailand, Singapore, Taiwan, New Zealand, India, Sri Lanka, the Maldives, Bangladesh, Vietnam, Indonesia, Malaysia, Brunei, and Cambodia. The list even includes Laos, Nepal and Mongolia (!), although these countries are all landlocked.

      Of America’s Western partners, the UK, France and Canada all have an active role to play as US allies. Particular attention is also given to ASEAN, including the ASEAN Regional Forum and the ASEAN-Plus format. There is to be an extensive network of US agents, namely the alumni of various courses run by US think tanks. Special mention is made of the Daniel K. Inouye Asia-Pacific Center for Security Studies (DKI APCSS), which has been systematically pursuing a network strategy since 1995 and has trained more than 12,000 alumni from countries in the region. It should be noted that the idea for creating a networked region under the aegis of the US is indicated in the subtitle of the strategy itself: “Preparedness, Partnerships, and Promoting a Networked Region”.

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      U.S. Acting Secretary of Defense Patrick M. Shanahan delivers remarks at the IISS Shangri-La Dialogue, Singapore, June 1, 2019.

      So, as we can see, the goals and objectives of this strategy, which cost the US Defense Department $128,000, go far beyond the specified region, although it is crucial for achieving these objectives. It is likely that, after testing out a number of initiatives on its allies, the US will go on to extend the most successful out to the whole world, especially with regard to sea power, where the US armed forces are strongest.

      There are already precursors to this kind of practice. According to retired officer Jim Banks, US Representative for Indiana’s 3rd congressional district and member of the United States House Committee on Armed Services, the US needs the Five-Ocean Navy Strategy, which “calls for a fleet of more than 400 ships, equipped with the latest technology to maximize our Navy’s offensive and defensive technological capabilities.”

      He goes on to say that: “Increasing the size of the fleet will help the U.S. Navy match growing forces of our Russian, Chinese and Iranian rivals. It also will safeguard free passage in contested waterways, such as the South China Sea, Suez Canal, Arctic Ocean and Persian Gulf.”

      So far, the idea is just a theoretical project, but it clearly reflects the interests of US manufacturers with links to the defence industry, the US Navy itself, and establishment war hawks.

      Therefore, the implementation of the new Indo-Pacific strategy, or its failure for whatever reason, will serve as a test of the Pentagon’s future actions.

    • How Many People Will Be Retiring In The Years To Come?

      The post-WWII baby boom in the US peaked in 1960, when 4,257,850 live births took place. Those who were born in that year will reach the standard retirement age of 65 in about six years (2025).

      With this impending milestone set to tax the resources of the Social Security Administration at a level not yet experienced in the system’s 84-year-existence, researchers at the St. Louis Fed shared a few calculations that not only showed how many people can be expected to file for retirement benefits in the years between now and 2025, but also how economists should take this information into account when evaluating the performance of the labor market.

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      Guillaume Vandenbroucke, the research officer and economist who published the information on the St. Louis Fed’s “On The Economy Blog,” demonstrated how official BLS data tend to understate the performance of the labor market when the number of people retiring is high, because the ‘net’ employment figure subtracts the number of people retiring.

      To estimate the number of future retirees, Vandenbroucke started with the population of workers between the ages of 40 and 65 in 2018 using data gathered by IPUMS-USA. He then adjusted for age- and gender-specific mortality rates from the Human Mortality Database.

      Basing his calculations on the assumption that the age-specific mortality rates would remain constant over the years, Vandenbroucke calculated the number of people who would reach the age of 65 each year. He then took his calculations one step further, and calculated the number of people reaching the age of 65 each day and each month.

      He displayed his calculations in the table below.

      What he determined is that the daily rate of people aging into retirement (i.e. turning 65) will peak in 2022 at just below 12,000. Over the next two decades, about 10,000 people will turn 65 every day.

      On the right axis, Vandenbroucke breaks down retirement figures by month, which will make them easier to compare with BLS jobs data. That number will peak at just shy of 350,000 in 2022.

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      Looking ahead several decades, Vandenbroucke will probably need to adjust his model, since millennials, who will reach ‘retirement age’ in 2060, or thereabouts, likely won’t be ready to retire until much, much later – if ever.

    • All The World’s Carbon Emissions In One Chart

      Submitted by Visual Capitalist

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      All the World’s Carbon Emissions in One Chart

      Two degrees Celsius may not seem like much, but on our planet, it could be the difference between thriving life and a disastrous climate.

      Over two centuries of burning fossil fuels have added up, and global decision-makers and business leaders are focusing in on carbon emissions as a key issue.

      Emissions by Country

      This week’s chart uses the most recent data from Global Carbon Atlas to demonstrate where most of the world’s CO₂ emissions come from, sorted by country.

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      In terms of absolute emissions, the heavy hitters are immediately obvious. Large economies such as China, the United States, and India alone account for almost half the world’s emissions. Zoom out a little further, and it’s even clearer that just a handful of countries are responsible for the majority of emissions.

      Of course, absolute emissions don’t tell the full story. The world is home to over 7.5 billion people, but they aren’t distributed evenly across the globe. How do these carbon emissions shake out on a per capita basis?

      Here are the 20 countries with the highest emissions per capita:

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      Out of the original 30 countries in the main visualization, six countries show up again as top CO₂ emitters when adjusted for population count: Saudi Arabia, the United States, Canada, South Korea, Russia, and Germany.

      The CO₂ Conundrum

      We know that rapid urbanization and industrialization have had an impact on carbon emissions entering the atmosphere, but at what rate?

      Climate data scientist Neil Kaye answers the question from a different perspective, by mapping what percentage of emissions have been created during your lifetime since the Industrial Revolution:

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      Put another way, the running total of emissions is growing at an accelerating rate. This is best seen in the dramatic shortening between the time periods taken for 400 billion tonnes of CO₂ to enter the atmosphere:

      • First period: 217 years (1751 to 1967)
      • Second period: 23 years (1968 to 1990)
      • Third period: 16 years (1991 to 2006)
      • Fourth period: 11 years (2007 to 2018)

      In order to be a decarbonised economy by 2050, we have to bend the (emissions) curve by 2020… Not only is it urgent and necessary, but actually we are very nicely on our way to achieving it.

    • Lower Income Americans Are Begging The Fed For Less Inflation

      While the Fed may be surprised that low income workers aren’t as enthused about inflation as they are, we are not. A recent Bloomberg report looked at the stark disconnect between Fed policy and well, everybody else but banks and the 1%.

      While the Fed sees low inflation as “one of the major challenges of our time,” Shawn Smith, who trains some of the nation’s most vulnerable, low-income workers stated the obvious: people don’t want higher prices.  Smith is the director of workforce development at Goodwill of Central and Coastal Virginia.

      In fact, he said that “even slight increases make a huge difference to someone who is living on a limited income. Whether it is a 50 cents here or 10 cents there, they are managing their dollars day to day and trying to figure out how to make it all work.’’ Indeed, as we discussed yesterday, it is the low-income workers – not the “1%”ers, who are most impacted by rising prices, as such all attempts by the Fed to “help” just make life even more unaffordable for millions of Americans.

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      Fears, and risks, associated higher prices comprise much of the feedback that the Fed has getting as part of its “Fed Listens” 2019 strategy tour, labeled as a multi-city “outreach tour”. So much for objectivity. Fed Governor Lael Brainard faced additional feedback from community leaders earlier this week in Chicago when she chaired a panel on full employment. 

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      Patrick Dujakovich, president of the Greater Kansas City AFL-CIO, told the audience in Chicago: “I have heard a lot about price stability and fiscal sustainability from the Fed for a very, very long time. Maybe I wasn’t listening, but today is the first time I’ve heard about employment sustainability and employment security.”

      The problem that the Fed continues to face is that it has backed itself into a corner. With the economy supposedly “booming” and the stock market at all time highs, rates remain low and any tick higher would likely begin to cause massive shocks to a debt-laden and spending-addicted economy that has been swelling into dangerously uncharted waters over the last 10 years.

      As one potential answer, the Fed is now looking at “inflation targeting” (whose disastrous policies we discussed here yesterday), which amounts to simply pursuing higher inflation for a while to “make up” for “undershoots” of the Fed’s 2% target since 2009. But the reality is that this idea cripples consumers, especially those at the lower end of the income spectrum.

      Stuart Comstock-Gay, president of Delaware Community Foundation, told an audience at the Philadelphia Fed: “The sometimes positive impacts of inflation for certain of us have no good benefits for people at the lower end of the spectrum.”

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      And even former Fed economists agree. Andrew Levin, who’s now a Dartmouth College professor said: The Fed and other central banks need to make sure they can foster the recovery from a severe adverse shock. But the answer is not to push inflation higher. Elevated inflation would be particularly burdensome for lower-income families.’

      Other economists have similar takes:

      University of Chicago economist Greg Kaplan found that the cumulative inflation rate was 8-to-9 percentage points lower for households with incomes above $100,000 versus those with incomes below $20,000 over the 2004-2012 period. During that time, inflation averaged 2.2% which would be in the range of what Fed officials are now discussing as a possible strategy.

    • Petro-Bitcoin? Russian Energy Giant Sees Oil Purchased With Crypto One Day

      Authored by Thomas Simms via CoinTelegraph.com,

      The head of Russian oil company Rosneft has not ruled out the possibility of paying for oil using cryptocurrencies in the future, according to a report by Snob.ru on June 6.

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      image courtesy of CoinTelegraph

      Igor Sechin said the industry’s acceptance and awareness of digital assets is beginning to rise as Silicon Valley tech giants including GoogleAmazon and Apple begin to explore the oil and gas sector.

      While he suggested that the stablecoin Facebook is currently developing could one day be used to purchase oil by the barrel, Sechin warned there are some hurdles that cryptocurrencies need to overcome if they are to pique the interest of energy giants. He was quoted as saying:

      “Greater flexibility often means greater volatility, and digitalization creates risks for maintaining commercial secrets and leads to the need to create new regulatory mechanisms, additional reservations. Today, technology companies do not have quality answers to these fundamental questions.”

      Sechin was speaking at the St. Petersburg International Economic Forum.

      Oil and cryptocurrencies have been linked before, with Venezuela’s Nicolas Maduro issuing a coin known as the Petro, which was supposedly tied to the nation’s reserves of commodities including gold, diamonds and oil.

      Last November, major oil companies joined large banks to launch a blockchain-driven platform for commodity trading, but this was more focused on helping industry players transition from paperwork to smart contracts.

    • These American Cities Have The Most Vacant Homes 

      A new report identifies American cities that are experiencing a post-housing crisis hangover.

      24/7 Wall St., a financial news website, used tax assessor data from ATTOM Data Solutions to examine the number of single-family homes and condos that are empty in 15,957 ZIP codes, to determine which American cities had the most vacancies.

      Twenty-nine cities were found to have at least 5,000 single-family homes and condos abandoned. In most of the cities on this list, the rate is well beyond the national vacancy rate of 1.52%.

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      Gary, Indiana; Detroit, Michigan; and Baltimore, Maryland, were identified as some of the cities that have the highest vacancy rates in the country. These vacancies are concentrated in neighborhoods with low incomes that suffer from decades of economic decline due to deindustrialization.

      Most of these cities with high vacancy rates are situated in deindustrialized zones in the Midwest and Rust Belt regions. The loss of key industries was gradual and started in the 1970s.

      24/7 Wall St. noted that high vacancy rates coincide with lower home prices. Here are 29 cities that are shrinking after decades of economic decline:

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      Chris Hedges, an American journalist, best describes this deterioration of America’s Heartland as an “unstoppable death spiral.”

      Hedges has said the US economy has been drained by wars in the Middle East and vast military expansion around the globe (i.e., the +800 military bases). Exploding deficits, along with the devastating effects of deindustrialization has also crippled the country, he noted. 

      The bottom 90% of Americans in the 2020s will see stagnate wages, exploding wealth inequality, shrinking communities, and more deindustrialization will contribute to a further increase in vacancy rates across the country.

       

    • Russia-China: A Strategic Alliance For The 21st Century

      Via The Strategic Culture Foundation,

      Russian President Vladimir Putin welcomed China’s Xi Jinping to Moscow this week for a three-day state visit. It wasn’t just the personal warmth between the two leaders that was on display. They have met on nearly 30 occasions over the past six years. President Xi referred to Putin as his closest international ally and friend.

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      More importantly, the two nations are solidifying a strategic alliance that could define the shape of geopolitics for the 21st Century.

      Putin and Xi, who also attended the annual St Petersburg International Economic Forum this week, signed a raft of bilateral commercial agreements which will propel Eurasian development and indeed global development.

      Of particular significance is the continued drive by Moscow and Beijing to conduct international trade in national currencies, obviating the US dollar as a payment means. This is a crucial step in countering the desired “hegemonic control” of the global financial system by Washington. Time and again, Washington has abused its privileged position of printing or withholding dollars in order to further its own agenda of dominating other nations. That abuse has to stop, and it will stop as Russia and China pave the way to a new, fairer mechanism of international finance and trade.

      The vision of cooperation and partnership outlined by Putin and Xi is one based on mutual respect and peaceful prosperity. Not just for those two nations but for all others who participate in the multilateral vision that they promulgate. In that way, the alliance being consolidated by Russia and China is one that offers renewed hope in a progressive and peaceful future for the planet.

      This positive vision is especially welcome at a time when the US under President Donald Trump is unleashing a barrage of tensions and potential conflicts from its bid to assert global dominance. The US is wielding sanctions and threats at numerous nations, including Russia and China, as well as even towards its own supposed allies in Europe, all in a desperate attempt to assert a hegemonic unipolar ambition.

      Such a scheme is a negation of the vision of solidarity and partnership outlined by the Russian and Chinese leadership. The “American way” is not only futile. Ultimately, it is a zero-sum mentality that leads to destruction and war. A path to where, ultimately, nobody wins.

      It is not as if history has not shown us that already. Two horrendous world wars were fought in the 20th century – with a total death toll of as many as 100 million people – largely because of selfish imperialist rivalry and zero-sum mentality.

      Russia and China were two nations that suffered the most in those conflagrations. They both know the horrific cost of conflict, but also the preciousness of peace. That’s why it is heartening to see those two countries forging a new paradigm of international cooperation based on mutualism and a commitment to development for the common good of all people.

      The much-vaunted multilateralism during the so-called Pax Americana decades following Second World War was always over-rated. It was always a cover for Washington’s presumed global hegemony. The present unwinding of the US-led Western order is really just the ugly face of American power coming to the surface.

      While Putin and Xi were embodying a vision for the future this week, it seemed ironically appropriate that the US and some other Western leaders were indulging in a backward look at history. The faux camaraderie of Western leaders was also apparent, belied by ongoing seething squabbles and rivalries between the US, France, Britain and Germany.

      President Trump and others were marking the 75th anniversary of the D-Day Normandy Landings in June 1944. That event heralded the opening of the Western Front against Nazi-occupied Europe and contributed to the final defeat of the Third Reich in May 1945. Lamentably, however, Western leaders persist in a conceited and false notion that D-Day was the key turning point in the definitive victory of the Second World War.

      It is frankly incontestable that it was the Soviet Red Army and the colossal sacrifices of Soviet citizens that were the pivotal force in defeating Nazi Germany and yielding the liberation of Europe from fascism. The momentous Battle of Stalingrad which smashed the Nazi war machine was over by February 1943, some 16 months before the Western allies launched their long overdue D-Day.

      Western leaders can indulge in self-serving vanities about presumed past glories all they want. It doesn’t change the historical record or objective truth. And besides, those who don’t learn from history are bound to be trapped by repeating its errors and dead-ends. They are quite literally yesterday people.

      Fittingly, Putin and Xi were not at the D-Day nostalgia event and its escapism to delusional glory of the 20thCentury. They were busy forging an alliance fit for the 21st Century.

    Digest powered by RSS Digest

    Today’s News 7th June 2019

    • STDs On The Rise In England

      New figures from Public Health England have revealed a jump up in the sexually transmitted infection (STI) diagnosis rates in the country in 2018.

      As Statista’s Martin Armstrong points out, when compared to 2017, the overall number of diagnoses per 100,000 population went from 763.6 to 804.9, representing a rise of 5.4 percent.

      Infographic: STI diagnoses on the rise in England | Statista

      You will find more infographics at Statista

      As Statista’s infographic shows, one of the STIs with the largest increase was Gonorrhoea which saw a massive increase of 25.4 percent. The 2018 rate of 101.1 represents the most cases since at least 2012 (the earliest year with which figures can accurately be compared due to methodology changes.

    • Russia's Lavrov Blasts D-Day Memorials As Part Of A "False History" Of WWII

      Speaking at a weekly news conference in Moscow, Foreign Ministry spokeswoman Maria Zakharova offered a tribute to those who died on the western front of World War Two but her comments likely irked many war veterans in Britain where the 75th anniversary on Wednesday of the largest seaborne invasion in history was marked at a ceremony in Portsmouth attended by Queen Elizabeth and world leaders including Donald Trump and Angela Merkel.

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      As Reuters reports, Russia told the West on Wednesday the Normandy landings on D-Day in 1944 did not play a decisive role in ending World War Two and that the Allied war effort should not be exaggerated.

      It should of course not be exaggerated. And especially not at the same time as diminishing the Soviet Union’s titanic efforts, without which this victory simply would not have happened,” she said.

      “As historians note, the Normandy landing did not have a decisive impact on the outcome of World War Two and the Great Patriotic War. It had already been pre-determined as a result of the Red Army’s victories, mainly at Stalingrad (in late 1942) and Kursk (in mid-1943),” Zakharova told reporters.

      The Soviet Union lost over 25 million lives in what it calls the Great Patriotic War, and Moscow under President Vladimir Putin has taken to marking victory in the war with a massive annual military parade on Red Square.

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      This followed an op-ed from Russian foreign minister Sergie Lavrov, saying that D-Day memorials are part of a ‘false’ history of World War II meant to airbrush out the Soviet Union.

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      The month of May and the fireworks are now behind us. The country and the world celebrated Victory Day, which is a holiday of war veterans, home front workers, and all the people of Russia and other victorious nations. There was a grand parade on Red Square and a wreath laying ceremony at the tomb of the Unknown Soldier. The march of the Immortal Regiment – a civil initiative that has acquired a truly global dimension – took place again not only in Russia, but in many other countries as well, with the participation of hundreds of thousands of Russians, our compatriots abroad and citizens of other countries – all people who cherish the memory of Victory and the memory of those who worked to bring it closer.

      There’s another date ahead – June 22, the day of memory and grief for those who died during the Great Patriotic War. We will be remembering those who fell in battles, were tortured to death in captivity and concentration camps, or died of hunger and the toils of war. Preparations are beginning for celebrating the 75th anniversary of Victory in 2020, which, of course, will be held at a level appropriate to the scale of the feat and the greatness of the spirit of the heroes of that war. One can’t help thinking about it: what does May 9 mean for the peoples who were on the verge of annihilation, and why do some people loathe this holiday today?

      As someone who is part of the first post-war generation, who grew up on the stories told by war veterans and family tales about the war, I believe the answers to these questions are obvious. The peoples of the Soviet Union and other countries became the object of the inhuman ideology of Nazism, and then the victim of aggression on behalf of the most powerful, organised and motivated war machine of that time. At the cost of terrible sacrifices, the Soviet Union made a decisive contribution to defeating Nazi Germany and, jointly with the Allies, liberated Europe from the fascist plague. The victory laid the foundation for the post-war world order based on collective security and state-to-state cooperation, and paved the way to creating the UN. These are the facts.

      Unfortunately, however, the memory of Victory is not sacred to all around the world. It is regrettable that there are individuals in Russia who picked up the myths spread by those who want to bury this memory, and who believe that time has come to stop solemn celebrations of Victory Day. The greater the anniversary numbers become, the more we come face to face with the desire to forget.

      Bitter as it is to witness, we see the attempts to discredit the heroes, to artificially generate doubts about the correctness of the path our ancestors followed. Both abroad and in our country we hear that public consciousness in Russia is being militarised, and Victory Day parades and processions are nothing other than imposing bellicose and militaristic sentiment at the state level. By doing so, Russia is allegedly rejecting humanism and the values of the “civilised” world. Whereas European nations, they claim, have chosen to forget about the “past grievances,” came to terms with each other and are “tolerantly” building “forward-looking relations.”

      Our detractors seek to diminish the role of the Soviet Union in World War II and portray it if not as the main culprit of the war, then at least as an aggressor, along with Nazi Germany, and spread the theses about “equal responsibility.” They cynically equate Nazi occupation, which claimed tens of millions of lives, and the crimes committed by collaborationists with the Red Army’s liberating mission. Monuments are erected in honour of Nazi henchmen. At the same time, monuments to liberator soldiers and the graves of fallen soldiers are desecrated and destroyed in some countries. As you may recall, the Nuremberg Tribunal, whose rulings became an integral part of international law, clearly identified who was on the side of good and who was on the side of evil. In the first case, it was the Soviet Union, which sacrificed millions of lives of its sons and daughters to the altar of Victory, as well as other Allied nations. In the second case, it was the Third Reich, the Axis countries and their minions, including in the occupied territories.

      However, false interpretations of history are being introduced into the Western education system with mystifications and pseudo-historical theories designed to belittle the feat of our ancestors. Young people are being told that the main credit in victory over Nazism and liberation of Europe goes not to the Soviet troops, but to the West due to the landing in Normandy, which took place less than a year before Nazism was defeated.

      We hold sacred the contribution of all the Allies to the common Victory in that war, and we believe any attempts to drive a wedge between us are disgraceful. But no matter how hard the falsifiers of history try, the fire of truth cannot be put out. It was the peoples of the Soviet Union who broke the backbone of the Third Reich. That is a fact.

      The attacks on Victory Day and the celebration of the great feat of those who won the terrible war are appalling.

      Notorious for its political correctness, Europe is trying to smooth out “sharp historical edges” and to substitute military honours for winners with “neutral” reconciliation events. No doubt, we must look forward, but we must not forget the lessons of history either.

      Few people were concerned that in Ukraine, which gravitates towards “European values,” the former Poroshenko regime declared a state holiday the day of founding the Ukrainian Insurgent Army – a criminal organisation responsible for the deaths of tens of thousands of civilian Ukrainians, Belarusians, Russians, Poles and Jews (although in Israel, whose people survived the Holocaust, May 9 is an official holiday, Victory Day). Other glaring examples from neighbouring countries include Nazi Germany-like torchlight processions of neo-Banderites along the main streets of the Hero City of Kiev, and the marches of veterans and supporters of Waffen-SS in Riga and Tallinn. I would like to ask those who do not like the tears of our veterans during parades and who criticise the “militarised” events in honour of Victory: how do you like this kind of “demilitarisation” of consciousness in a European way?

      No one will admit this, of course, but here are the facts: the United States, NATO and the EU let their junior partners, who are using blatant Russophobia to build their careers, get away with quite a lot. These guys get away with everything, including glorification of Nazi henchmen and hardcore chauvinism towards ethnic Russians and other minorities for the sole purpose of using them to keep Western alliances on anti-Russian positions and to reject a pragmatic dialogue with Moscow on an equal footing.

      Occasionally it appears that the purpose of such connivance on behalf of the West is to relieve of responsibility those who, by colluding with Hitler in Munich in 1938, tried to channel Nazi aggression to the east. The desire of many in Europe to rewrite that shameful chapter of history can probably be understood. After all, as a result, the economies of a number of countries in continental Europe started working for the Third Reich, and the state machines in many of them were involved in the Nazi-initiated genocide of Russians, Jews and other nations. Apparently, it is no accident that the EU and NATO members regularly refuse to support the UN General Assembly resolution on the inadmissibility of glorifying Nazism, which was advanced by Russia. The “alternative vision” of World War II among Western diplomats clearly does not stem from the lack of historical knowledge (although there are problems in this department as well). As you may recall, even during the Cold War such blasphemy did not exist, although it would seem that an ideological face-off was a perfect setting for it. Few dared to challenge the decisive role of the Soviet Union in our common Victory back then and the standing our country enjoyed during the post-war period, which our Western allies recognised without reservations. Incidentally, it was they who initiated the division of Europe into “areas of responsibility” back in 1944, when Churchill raised this issue with Stalin during the Soviet-British talks.

      Today, distorting the past, Western politicians and propagandists want to make the public doubt the fair nature of the world order that was approved in the UN Charter following World War II. They adopted a policy seeking to undermine the existing international legal system and to replace it with a certain “rule-based order.” They want to create this order based on the principle of “he who is stronger is right” and according to the “law of the jungle.”

      This primarily concerns the United States and its peculiar perception of 20th century history. The idea of “two good wars” is still widespread there, as a result of which the United States secured military dominance in Western Europe and a number of other regions of the world, raised confidence in its strength, experienced an economic boom and became the world leader.

      Just as enthusiastically as the Europeans, the Americans are creating an image of “militaristic Russia.” However, most of their own history is a sequence of endless wars of conquest. Over 243 years of “American exceptionalism,” interventionism has become an integral part of Washington’s foreign policy. Moreover, the US political elite think of the use of force as a natural element of “coercive diplomacy” designed to resolve a wide range of issues, including domestically.

      Not a single election campaign in the United States is complete without the candidates trying on a toga of a commander-in-chief in action. The ability to resort to the use of force for any reason is proof of an American politician’s prowess. There are many examples of such stereotypes being implemented under various “plausible” pretexts: Grenada in 1983, Panama in 1989, Yugoslavia in 1999 and Iraq in 2003. At the same time, America honours its fallen soldiers regardless of what cause they fought for. Memorial Day is celebrated in May, and no one has any suspicions of “militarism” when naval parades and air shows with the participation of military equipment take place in various US cities.

      We are essentially accused of preserving the memory of our fathers and grandfathers, who laid down their lives in a sacred liberation war, giving them military honours, and celebrating Victory Day widely and with pride. Was it Russia or the Soviet Union that unleashed two world wars? Is it us who today operate an extensive network of military bases that were created to control the entire world?

      For diplomats and politicians, May 9 is also a good occasion to recall that the Allies referred to themselves as the United Nations in 1945. They stood shoulder to shoulder during the war, conducted Arctic convoys and fraternised on the Elbe. French pilots in the Normandie-Neman fighter regiment fought the enemy on the Soviet-German front. Awareness of the common threat in the face of the inhuman ideology of National Socialism had helped the states with different political and socioeconomic models to overcome differences. The belief that the defeat of Nazi Germany will mark the triumph of justice and the victory of light over darkness was the unifying factor.

      After the war, the Allies built a new architecture of international relations based on the ideal of equal cooperation between sovereign states. The creation of the UN was supposed to warrant that the sad fate of its predecessor, the League of Nations, will not be repeated. The founding fathers learned the lessons of history well and knew that without the “concert of the great powers” – that is, the unanimous consent of the leading countries of the world which hold permanent seats at the Security Council – the world cannot enjoy stability. We must be guided by this commandment today as well.

      This year, as we took part in Victory Day celebrations, we once again told everyone willing to listen: “Yes, just like our ancestors we are ready to decisively repel any aggressor. But Russians do not want war, and do not want to go through horror and suffering again.” The historical mission of our nation is to guard peace. The peace we are trying to preserve. Therefore, we are offering a hand to anyone who wants to be good partners to us. Our Western colleagues have long had our proposals which open realistic ways to overcoming confrontation and putting up a reliable barrier to all those who allow for the possibility of a nuclear war. These proposals were further reinforced by an appeal made by the CSTO member states to the North Atlantic Alliance in May to begin a professional depoliticised dialogue on strategic stability issues.

      I am confident that the citizens of Russia and other countries will be watching parades in honour of the 75th anniversary of the Great Victory on May 9, 2020 and joining the ranks of the Immortal Regiment with St George ribbons attached to their lapels with thoughts of peace in their minds. The memory of those who fell in battle fighting the enemies of the homeland, the enemies of civilisation, will remain alive as long as we mark the great holiday of victorious nations, the holiday of salvation and the holiday of liberation. And there is no need to be embarrassed about the grandiose scale of this celebration.

      *  *  *

      Of course, as we noted previously, when asked “who beat Hitler?” The answer very much depends who is being asked…

      In 1945, most French people thought that the Soviet Union deserved the most credit for Nazi Germany’s defeat in World War II – even though the Soviets did not play much of a role in France’s liberation, relative to the US and Britain.

      By 1995 and 2004, however, the French had changed their minds, and were crediting the US as the biggest contributor to victory in Europe (survey data from the French Institute of Public Opinion)

      Source: Olivier Berruyer at Les Crises blog

      Assessing the “biggest contributor to victory” in a rigorous way is exceptionally difficult. They tend to devolve into comparisons of counterfactuals, and the truth is that nobody has any strong idea how the war would have turned out absent US involvement, or if the German-Soviet non-aggression pact had held, etc. Soviet Union’s successful resistance of Nazi invasion and subsequent reclamation of Eastern Europe was the most important of many factors in defeating Germany. As historian Richard Overy Explains In His book Why the Allies Won :

      If the defeat of the German army was the central strategic task, the main one was the conflict on the eastern front. The German army was first weakened and then driven back, before the main weight of Allied ground and air forces was brought to bear in 1944. Over four hundred German and Soviet divisions fought along more than 1,000 miles. Axis divisions between 1941 and 1945. The scale and geographical extent of the eastern front dwarfed all earlier warfare. Losses on both sides far exceeded anywhere else in the military contest. The war in the east was fought with a ferocity almost unknown on the western fronts. The battles at Stalingrad and Kursk, which broke the back of the German army, drew from the soldiers of both sides the last ounces of physical and moral energy.

      If you are looking at the human toll of the war, the Soviets clearly incurred the heaviest losses. Tony Judt’s Postwar cites Estimates Suggesting There Were 8.6 million Soviet Military Deaths and over 16 million civilian Deaths in World War II. The US lost 418.500 Military and Civilians in all theaters of the war – still a staggering figure, but not on the scale as Sami Soviet Losses. Of course, it’s possible – and highly preferable! – to contribute to the success of the process. But it’s worth reflecting on just how massive the sacrifice the Soviet people made was.

      Source: Olivier Berruyer at Les Crises blog

      The victors are those who write History. It is this one that is written in our school books, not the true History as it unfolded, but a History that caresses the camp of the winners. History has ceased long ago to be the sum of the humanities today it belongs only to a handful of individuals. “

      [Maxime Chattam, The mysteries of chaos ]

    • The Most 'Believed' "Conspiracy Theories" In America

      Believers in conspiracy theories are usually written off immediately as weirdos and idiots, but as a new survey by YouGov for Statista reveals, in some cases, these are actually widely-held beliefs and far from the bizarre, fringe opinion that you might have come to expect.

      Infographic: Belief in Conspiracy Theories in the United States | Statista

      You will find more infographics at Statista

      According to the survey, one of the most commonly believed conspiracy theories among U.S. adults is that Lee Harvey Oswald did not act alone in the assassination of JFK – 47 percent believe either strongly or somewhat that there was in fact another shooter behind the grassy knoll. President Trump’s oft-touted theory of the “deep state” has also to a fair degree made it into common discourse, with 29 percent believing it to some extent.

      Meanwhile, what might be considered as the ‘mother of all conspiracy theories’ – that the 1969 moon landing was faked – seems to have fallen out of favour, with only 11 percent getting behind the idea 50 years on.

    • Could China Could Do A "Pearl Harbor" To Survive The "New Cold War"?

      Via SinoInsider.com,

      The CCP could use conventional and “unrestricted warfare” strategies and tactics against the United States.

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      A confluence of factors is causing unprecedented crisis for the Chinese Communist Party:

      • Non-stop escalation of the “you die, I live” factional struggle between the Xi leadership and the Jiang faction;

      • A rapidly deteriorating economy;

      • A food crisis brought about by corruption, disease (swine fever, bird flu, etc.), and pests (fall armyworm);

      • Increasing social unrest across China.

      The CCP’s problems have been compounded by the Sino-U.S. trade war and America’s toughening stance on the Chinese regime:

      • In May, United States President Donald Trump announced plans to add tariffs to all Chinese goods (increase tariff rates on $200 billion worth of Chinese products in May; add 25 percent tariffs on an additional $300 billion of Chinese exports in June);

      • The U.S. Commerce Department announced a ban on Huawei, a move which essentially dooms the state-backed Chinese telecommunications maker;

      • The U.S. appears to be moving against other Chinese technology companies, particularly those involved in human rights persecution on the mainland;

      • The Trump administration is playing the human rights and Taiwan card;

      • The U.S. is stepping up military activity in the South China Sea on its own and with allies;

      • The U.S. is strengthening alliances and partnerships in the Indo-Pacific to counter the Chinese regime.

      Based on our research into the CCP, we believe that the Party and the regime cannot long withstand the perfect storm of political turmoil, economic crisis, food shortages, social unrest, and intense U.S. pressure. With its survival at stake, the CCP will not resign itself to fate and will instead do whatever it can, by all means fair and foul, to stay alive.

      Given enough time, the CCP can weather any internal problem. Hence, it will prioritize the resolving of external problems to buy time to handle domestic woes. Topping the list of the CCP’s external threats are the United States and the Trump administration. With more U.S. tariffs coming near the end of June, we believe that the CCP would deploy its countermeasures sooner rather than later.

      Below we list some possible conventional and “unrestricted warfare” strategies and tactics which the CCP could use to pull off a “Pearl Harbor” against the U.S. and survive the “new cold war.”

      1. The CCP could seek to disrupt U.S. financial markets

      • CCP propaganda recently began making comparisons between the Chinese and U.S. stock markets. The propaganda asserts that there are higher risks in the U.S. market and claims that the Chinese market is more “resilient” under CCP authoritarian rule.

      • Veteran Chinese officials and scholars have recently been talking about how the trade war could cause a “global financial crisis” and the problems with America’s financial markets.[1]

      • The CCP could tap into its Red Matrix to weaken investor expectations and confidence in the U.S. markets and economy.

      • Chinese companies listed overseas and China’s sovereign wealth fund could find ways to trigger stock market panic around the time when new U.S. tariffs are imposed in June. Pro-PRC elements on Wall Street could even cooperate with the CCP to profit from the financial disruption.

      • Should it succeed in triggering a U.S. stock market crash, the CCP could rollout a gold-backed currency to replace the dollar in the global financial system and win the “currency war” with America.

      2. The CCP could seek to influence and interfere in U.S. politics and society

      • The CCP would almost certainly focus its influence and interference operations to take down the Trump administration, turn President Trump’s attention away from the China issue, and shape the 2020 U.S. presidential election.

      • To undermine the Trump administration, the CCP could find ways to influence politicians in both major parties to disrupt governance or Trump’s policies. For instance, the CCP would like for Trump’s trade and tariff authority to be restricted, see impeachment proceedings started against him, and to see his domestic initiatives (infrastructure, healthcare, etc.) stalled until after the 2020 U.S. presidential election.

      • To turn Trump’s attention away from China, the CCP could tap into its Red Matrix to accuse the Trump administration of “racism” and wanting a “clash of civilizations” while emphasizing the threat of other “bad actor” countries (Russia, Iran, etc.) over China.

      • To shape the 2020 U.S. presidential election, the CCP could find ways to back other candidates while producing or supporting the production of anti-Trump propaganda.

      • To divide American society, the CCP could try to play up the “clash of civilizations” issue and accuse the Trump administration of “xenophobia.”

      3. The CCP could engineer foreign crises to divert America’s attention away from China

      • The PRC could strengthen relations with Russia and encourage Russia to become more antagonistic towards America.

      • The PRC could find ways to provoke military confrontation between Iran and the United States.

      • The PRC could encourage North Korea to play hardball on denuclearization with America, including stepping up missile testing.

      • The PRC could secretly support the Maduro regime in Venezuela and impede the country’s shift away from rule by dictatorship.

      4. The CCP could avoid U.S. containment by fracturing alliances and partnerships

      • The PRC could step up efforts to win over Europe while driving a wedge between America and its European allies.

      • The PRC could try to convince countries in the Indo-Pacific to “fight against U.S. hegemony” or keep playing both sides (U.S. and China). This would prevent Indo-Pacific countries from cooperating with the U.S. to counter the PRC threat.

      Our take:

      1. A wounded animal is most dangerous. Our list of possible strategies and tactics which the CCP could use against the U.S. is not exhaustive, and we do not rule out the possibility of the CCP deploying even more nefarious and unthinkable countermeasures.

      2. The toughening U.S. stance towards the PRC is a net positive for America and the world. However, America’s strong measures would inspire strong responses from the CCP and sharply raise global political, economic, and military risks. While we believe that the U.S. is currently on track to win the “new cold war,” victory could come at a steep cost if it only uses the current strategies.

      3. Based on our research, we believe that the PRC’s backtracking in trade talks is directly related to the escalation of the CCP factional struggle. The current state of the factional struggle has opened a critical window of opportunity for the U.S. to exploit and drastically reduce the length of time needed to win the “new cold war,” as well as the overall costs. To take advantage of this window of opportunity, the Trump administration must be able to differentiate between the reformers and Maoist hardliners in the regime and apply strategic pressure on the latter group.

      Get smart:

      SinoInsider has a track record of accurately predicting China. We believe that Black Swans are coming to China in the second half of 2019. We can help businesses, investors, and governments avoid risks and seize opportunities as China faces tremendous change.

      The U.S. government can avoid a lengthy, costly confrontation with China and sidestep the “clash of civilizations” issue with novel solutions that complement existing strategies. SinoInsider has those solutions.

      *  *  *

      Notes

      [1] On May 16, Renmin University professor Jin Canrong said in an exclusive interview with a mainland media outlet that the U.S. stock market is in more serious trouble than the Chinese market. He likened the collapse of the Chinese market to a person jumping off the second floor of a building (ankle sprain/minimal costs) and the collapse of the U.S. market to that of a person leaping from a building’s 50th floor (certain death/financial disaster). Jin added that Wall Street stock accounts for 26 percent of the U.S. GDP while Chinese stocks only make up 4 percent of China’s GDP, and that 80 percent of American businesses rely on the stock market for financing as opposed to 10 percent in China.

      On May 31, former People’s Bank of China governor Dai Xianglong said at a press event in Beijing hosted by think tank China Center for International Economic Exchanges that the Sino-U.S. trade war “may cause a global financial crisis” if it escalates.

      On June 2, CCTV’s “Xinwen Lianbo” aired a four-minute interview with top securities regulator Yi Huiman about the Chinese and U.S. stock markets. Yi made the following points:

      • China’s A-shares merely “fluctuated” in the face of a “U.S. policy attack” (tariffs) while U.S. shares showed a “clear decline”;
      • The U.S. “bull” market is at the top of a 10-year bull cycle while the A-share market is the bottom of “bear” market which began in 2015;
      • Stocks account for 35 percent of American household investment while Chinese households only invest 1.4 percent of their funds in stocks;
      • “If the stock markets of both countries fall, who has more leeway and who would be hurt more? This is self-evident!”

    • Scammed: DoD Bought Fake, Chinese-Made Military Combat Uniforms

      A criminal information was filed last week in US District Court in Providence R.I., in an ongoing investigation into a Brooklyn, N.Y., clothing wholesaler who sold $20 million worth of Chinese-made counterfeit goods to the US Department of Defense (DoD) and other businesses that supply the US government, read a press release from the Department of Justice (DoJ).

      At the center of the scheme was Ramin Kohanbash, 49, who provided Chinese manufacturers with US combat uniforms and gear to reproduce. The knockoff products had copied trademarks and brand names of US-made products so that counterfeit versions appeared genuine.

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      After the counterfeit goods were manufactured in China, they would then arrive at Kohanbash’s warehouse in New York. His primary customers were wholesalers who would then sell the uniforms to the military and government buyers.

      “Under two US laws known as The Berry Amendment and the Trade Agreements Act (‘TAA’), goods sold to the military and certain other government buyers are required to be manufactured in the United States and certain other designated countries; China is not one of those countries,” according to the DoJ.

      “In order to sell the counterfeit goods, it is alleged that Kohanbash provided wholesalers who did business with the government with false certification letters claiming that the goods were made in the US, and therefore complied with Berry Amendment. In other instances, it is alleged that Kohanbash falsely represented that the goods met TAA requirements,” the DoJ continued.

      The DoJ alleges that Kohanbash counterfeited military parkas used by the Air Force. These parkas are manufactured with a special fabric known as Multicam, which uses near-infrared (“NIR”) management technology designed to make troops virtually invisible to detect by night-vision goggles.

      About two hundred of these parkas were counterfeited, lacking the important Multicam fabric, were supplied to Air Force personnel in Afghanistan, could have put them in harm’s way on the battlefield.

      According to Military Times, justice officials seized 1,700 boxes of counterfeit combat uniforms from Kohanbash’s warehouse.

      Kohanbash is scheduled to appear in court before US Magistrate Judge Patricia A. Sullivan on June 12 for an initial appearance on the charges contained in the court filing.

    • Quantifying The Staggering Cost Of IT Outages

      Submitted by Priceonomics

      Notable technology investor Elad Gil recently observed that online markets are about ten times larger than they used to be ten to fifteen years ago. For companies this is mostly good news; you gain more customers and revenue than was even conceivable a decade ago.

      But with great opportunity comes great opportunity costs. For companies with a substantial online presence, every moment of downtime means a staggering loss of revenue, customer goodwill, and expense to fix the issue. 

      While a decade or two ago, a server outage was a minor inconvenience, today it can mean a material loss of revenue. But just how much does it cost when there is a data center outage, a network crash, or mysterious technical outage? We analyzed the data to look at trends in the cost of data center outages.

      As one would expect, the cost of technical outages has skyrocketed in recent years. What’s driving the growth in expense, however, isn’t that they are expensive to remedy. The cost driver is that when your product or service is down, you’re losing out on a lot of money. And while the costs of outages are higher than they’ve ever been, thankfully the tools to prevent or mitigate their impacts are also increasingly available.

      ***

      To quantify the cost of downtime, data center company Vertiv has periodically commissionedthe research firm Ponemon to calculate direct and indirect costs of an outage. The study was completed in 2010, 2013, and 2016, and used an activity-based costing method. In 2016, the study was based on 63 firms that experienced an outage that year.

      The chart below shows the cost per minute of a data center outage:

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      In 2016, every single minute of server downtime cost nearly nine thousand dollars. Put differently, an hour of downtime costs over half a million dollars. In 2010, the cost per minute of downtime exceeded a very substantial five thousand dollars and by 2016 that figure increased nearly 60%.

      Outages, unfortunately, rarely last only a minute. The following chart shows the average cost of an outage by year:

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      In 2016, the average outage costs nearly three quarters of a million dollars, an increase of nearly 50% from 2010 when it still cost almost half a million dollars. Given that each minute of downtime cost nearly $9,000, that implies the typical downtime is approximately an hour and twenty minutes. While a relatively short period, the cost (and stress for the IT department) of an outage is simply staggering.

      In another report, the Uptime Institute examines the range of severity of different outage scenarios. In a 2018 survey of nearly three hundred firms with downtime incidents, the following was the distribution of the cost of the outages:

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      While the majority of incidents cost less than one million dollars, approximately 15% of the outages in the survey cost over a million dollars. In one case the cost of the outage exceeded $50MM dollars! As online markets grow larger, the downside risk from an outage is becoming increasingly uncapped.

      What’s driving the exorbitant cost of an outage? Let’s break the overall cost into its subcomponents to better understand the cost drivers:

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      By far, the largest costs associated with outages are business disruption and lost revenue which combined make up over 60% of the total cost of an outage. It’s worth noting that these are opportunity costs from the outage, rather than direct costs associated with fixing it. In fact, each of the largest four cost buckets could be classified as opportunity costs and together they comprise 90% of the total cost of an outage.

      In the grand scheme of things, fixing an outage is relatively cheap, but having your product go down is extremely expensive. New customers can’t sign up, existing customers aren’t being serviced, and your staff may have their daily activities brought to a standstill. 

      Of these cost categories, which ones are increasing the fastest? The following chart shows the growth rate of each cost bucket between 2010 and 2016:

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      The “opportunity cost” of downtime categories are not only the largest, but are growing the fastest. By a significant margin, the fastest growing cost category of downtime is lost revenue.

      Why are people losing so much more revenue from being down than ever before? Simply put, more commerce and operations are completely online. Consider the case study of Microsoft. A decade ago, if their data centers went down, it wouldn’t affect selling copies of Microsoft Office or Windows which were distributed and operated offline. Today, much of their revenue comes from online subscriptions to their products or access to data center products. Downtime today would catastrophically affect revenue in a way that couldn’t be imagined 10 or 20 years ago.

      While some industries are more inoculated from the risk of downtime, today others operate entirely online. The next chart shows the average cost of downtime by industry (keep in mind the sample size of this analysis is only 63 firms, so more limited conclusions should be drawn from this).

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      Costs are highest in high-transaction industries like finance and ecommerce where downtime means lost money. For example, when the Visa credit card network had half a day downtime in Europe in 2018, nearly 5.2 million transactions were affected even though 90% of transactions in the region still took place without issue. Or consider the cataclysmic and costly impact of a hospital network outage; last year Sutter Health of California experienced a network outage in all its hospitals. During the outage, patients were turned away and medical providers could not access electronic health records.

      ***

      The biggest cost of downtime isn’t fixing the issue, but rather your opportunity costs that stem from the outage. Lost revenue, productivity, and business disruption costs dwarf all other outage related costs.

      The old adage “an ounce of prevention is worth a pound of cure” is especially apropos when it comes to data center outages. Companies can invest in predicting and preventing future systems crashes and save an inordinate amount of money by not incurring the costs of outages.

      What are companies to do? One solution championed by Splunk is to deploy “predictive analytics” to mine data for early signals of an outage in order to prevent it from happening. Given the enormous amount of data generated by the modern enterprise, these kinds of solutions use machine learning and artificial intelligence to help humans anticipate future events. Being able to anticipate future events in one’s IT infrastructure has myriad applications from cybersecurity, gaining operational efficiencies, and even preventing future outages.

      What other “low hanging fruit” can companies address to prevent future outages? Given that greater than 20% of all outages are a result of human error, investing in training and systems to prevent those kinds of errors can provide immediate dividends.

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      Furthermore, given that hardware failures and natural disasters can put your best-laid plans to waste, setting up a well-rehearsed recovery plan is absolutely necessary. After all, if the cost of downtime is about $9,000 a minute and rising, it’s best to have the shortest downtime possible.

      And finally, if the biggest technology companies in the world occasionally suffer outages on their biggest days of the year, it could happen to anyone. Anything you can do to get ahead of the issues before outages take place will save you massive amounts of lost revenue and productivity.

    • Watch: China Becomes First Nation To "Own And Operate" Space Rocket That Launches From Sea

      China has officially launched its first space rocket from a cargo ship, making it the first single nation to fully “own and operate” a floating launch platform, according to RT

      A Long March 11 carrier rocket launched from a pad installed on a civilian ship in the Yellow Sea earlier this week, according to China’s National Space Administration. 

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      The launch vehicle successfully carried five commercial satellites into Earth’s orbit, in addition to two scientific modules, which will be used to monitor winds on the ocean surface and help forecast weather.

      Needless to say, we’d keep our eyes open for any Huawei branding on these “modules”. 

      The rocket was 20.8 meters long and had a lift-off weight of 58 tons. It is capable of delivering up to 350 kg in cargo and made its first flight in 2015. Since then, it has been launched five additional times from the Jiuquan Satellite Launch Center in northwestern China.

      Launching from sea is a more cost efficient method than from land, according to Chinese space authorities. They claim these launches would “provide better aerospace commercial services for countries involved in the Belt and Road Initiative”, which is Beijing’s plan to catalyze the global economy. 

      Russia had previously launched a Ukrainian Zenit-3SL rocket in 2014 from a floating pad in the Pacific Ocean, but that project halted operations five years ago amid tensions between Moscow and Kiev, who had partnered together to operate the project. Chinese officials, meanwhile, claim that their platform and rockets are entirely owned by one state for the first time in the world. 

    • Paul Craig Roberts: "That America" Is Gone

      Authored by Paul Craig Roberts,

      The story line is going out that the economic boom is weakening and the Federal Reserve has to get the printing press running again.  The Fed uses the money to purchase bonds, which drives up the prices of bonds and lowers the interest rate.  The theory is that the lower interest rate encourages consumer spending and business investment and that this increase in consumer and business spending results in more output and employment.

      The Federal Reserve, European Central Bank, and Bank of England have been wedded to this policy for a decade, and the Japanese for longer, without stimulating business investment.  Rather than borrowing at low interest rates in order to invest more, corporations borrowed in order to buy back their stock.  In other words, some corporations after using all their profits to buy back their own stock went into debt in order to further reduce their market capitalization!  

      Far from stimulating business investment, the liquidity supplied by the Federal Reserve drove up stock and bond prices and spilled over into real estate.  The fact that corporations used their profits to buy back their shares rather than to invest in new capacity means that the corporations  did not experience a booming economy with good investment opportunities. It is a poor economy when the best investment for a company is to repurchase its own shares.

      Consumers, devoid of real income growth, maintained their living standards by going deeper into debt.  This process was aided, for example, by stretching out car payments from three years to six and seven years, with the result that loan balances exceed the value of the vehicles.  Many households live on credit cards by paying the minimum amount, with the result that their indebtedness grows by the month. The Federal Reserve’s low interest rates are not reciprocated by the high credit card interest rate on outstanding balances.

      Some European countries now have negative interest rates, which means that the bank does not pay you interest on your deposit, but charges you a fee for holding your money.  In other words, you are charged an interest rate for having money in a bank.  One reason for this is the belief of neoliberal economists that consumers would prefer to spend their money than to watch it gradually wither away and that the spending will drive the economy to higher growth.

      What is the growth rate of the economy?  It is difficult to know, because the measures of inflation have been tampered with in order to avoid cost-of-living adjustments for Social Security recipients and the payment of COLA adjustments in contracts. The consumer price index is a basket of goods that represents an average household’s expenditures.  The weights of the items in the index are estimates of the percentage of the household budget that is spent on those items.  A rise in the prices of items in the index would raise the index by the weight of those items, and this was the measure of inflation.

      Changes were made that reduced the inflation that the index measured.  One change was to substitute a lower price alternative when an item in the index rose in price.  Another was to designate a rise in price of an item as a quality improvement and not count it as inflation. 

      Something similar was done to the producer price index which is used to deflate nominal GDP in order to measure real economic growth.  GDP is measured in terms of money, and some of the growth in the measure is due to price increases rather than to more output of goods and services.  In order to have a good estimate of how much real output has increased, it is necessary to deflate the nominal measure of GDP by taking out the price rises.  If inflation is underestimated, then real GDP will be overestimated. When John Williams of Shadowstats adjusts the real GDP measure for what he calculates is a two-percentage point understatement of annual inflation, there has been very little economic growth since 2009 when a recovery allegedly began, and the economy remains far below its pre-recession level in 2008.

      In other words, the belief that the US has had a decade long economic recovery is likely to be an illusion produced by underestimating  inflation.  Indeed, every day experience with the prices of food, clothing, household goods, and services indicates a higher rate of inflation than is officially reported.

      The low unemployment rate that is reported is also an illusion.  The government achieves the low rate by not counting the unemployed.  The economic and psychological cost of searching for a job are high.  There are the economic costs of a presentable appearance and transport to the interview. For a person without a pay check, these costs rapidly mount.  The psychological costs of failure to find a job time after time also mount.  People become discouraged and cease looking.  The government treats discouraged workers who cannot find jobs as no longer being in the work force and omits them from the measure of unemployment.  John Williams estimates that the real rate of US unemployment is 20%, not 3.5%

      The decline in the labor force participation rate supports Williams’ conclusion.  Normally, a booming economy, which is what 3.5% unemployment represents, would have a rising labor force participation rate as people enter the work force to take advantage of the employment opportunities.  However, during the alleged ten year boom, the participation rate has fallen, an indication of poor job opportunities.

      The government measures jobs in two ways: the payroll jobs report that seeks to measure the new jobs created each month (which is not a measure of employment as a person may hold two or more jobs)  and the household survey that seeks to measure employment. The results are usually at odds and cannot be reconciled. What does seem to emerge is that the new jobs reported are for the most part low productivity, low value-added, lowly paid jobs. Another conclusion is that the number of full time jobs with benefits are declining and the number of part-time jobs are rising. 

      A case could be made that US living standards have declined since the 1950s when one income was sufficient to support a family.  The husband took the slings and arrows of the work experience, and the wife provided household services such as home cooked nutritious meals, child care, clean clothes, and an orderly existence.  Today most households require two earners to make ends meet and then only barely.  Saving is a declining option.  A Federal Reserve report a couple of years ago concluded that about half of American households could not produce $400 cash unless personal possessions were sold.

      As the Federal Reserve’s low interest rate policy has not served ordinary Americans or spurred investment in new plant and equipment, who has it served? The answer is corporate executives and shareholders.  As the liquidity supplied by the Federal Reserve has gone mainly into the prices of financial assets, it is the owners of these assets who have benefited from the Federal Reserve’s policy.  Years ago Congress in its unwisdom capped the amount of executive pay that could be deducted as a business expense at one million dollars unless performance related.  What “performance related” means is a rise in profits and share price.  Corporate boards and executives achieved “performance” by reducing labor costs by moving jobs offshore and by using profits and borrowing in order to buy back the company’s shares, thus driving up the price.

      In other words, corporate leaders and owners benefited by harming the US economy, the careers and livelihoods of the American work force, and their own companies.

      This is the reason for the extraordinary worsening of the income and wealth distribution in the United States that is polarizing the US into a handful of mega-rich and a multitude of have-nots.

      The America I grew up in was an opportunity society.  There were ladders of upward mobility that could be climbed on merit alone without requiring family status or social and political connections.  Instate college tuition was low.  Most families could manage it, and the students of those families that could not afford the cost worked their way through university with part time jobs. Student loans were unknown.

      That America is gone.

      The few economists capable of thought wonder about the high price/earnings ratios of US stocks and the 26,000 Dow Jones when stock buy-backs indicate that US corporations see no investment opportunities.  How can stock prices be so high when corporations see no growth in US consumer income that would justify investment in the US? 

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      When President Reagan’s supply-side economic policy got the Dow Jones up to 1,000 the US still had a real economy. How can it be that today with America’s economy hollowed out the Dow Jones is 25 or 26 times higher?  Manipulation plays a role in the answer. In Reagan’s last year in office, the George H.W. Bush forces created the Working Group on Financial Markets, otherwise known as the “plunge protection team,” the purpose of which was to prevent a stock market fall that would deny Bush the Republican nomination and the presidency as Reagan’s successor.  The Bush people did not want any replay of October 1987. 

      The plunge protection team brought together the Federal Reserve, Treasury, and Securities and Exchange Commission in a format that could intervene in the stock market to prevent a fall. The easiest way to do this is, when faced with falling stock prices, to step in and purchase S&P futures. Hedge funds follow the leader and the market decline is arrested.

      The Federal Reserve now has the ability to intervene in any financial market.  Dave Kranzler and I have shown repeatedly how the Federal Reserve or its proxies intervene in the gold market to support the value of the excessively-supplied US dollar by printing naked gold contracts to drop on the gold futures market in order to knock down the price of gold. A rising gold price would show that the dollar support arrangements that the Federal Reserve has with other central banks to maintain the illusion of a strong dollar is a contrived arrangement rejected by the gold market.

      What few, if any, economists and financial market commentators understand is that today all markets are rigged by the plunge protection team.  For at least a decade it has not been possible to evaluate the financial situation by relying on traditional thinking and methods.  Rigged markets do not respond in the way that competitive markets respond.  This is the explanation why companies that see no investment opportunities for their profits better than the repurchase of their own shares can have high price/earnings ratios.  This is the explanation why the market’s effort to bring stock prices in line with realistic price/earnings ratios is unsuccessful.

      As far as I can surmise, the Federal Reserve and plunge protection team can continue to rig the financial markets for the mega-rich until the US dollar loses its role as world reserve currency.

      *  *  *

      We live in a Matrix of Lies in which our awareness is controlled by the explanations we are given.  The control exercised over our awareness is universal.  It applies to every aspect of our existence.  In the article above I showed that not only is our understanding of the economy controlled by manipulation of our minds, but also the markets themselves are controlled by official intervention. In brief, you can believe nothing that you are officially told.  If you desire truth, you must support the websites that are committed to truth.

    • This 30-Story NYC High-Rise Might Have 5 Floors Chopped Off

      A 30-story high-rise in Manhattan that is almost completed might have to cut off five of its top floors because of one elected official’s complaint that developers have violated the city’s zoning rules, reported The New York Times.

      The high-rise, located on the Upper East Side, has seen fierce resistance from Gale Brewer, the Manhattan borough president, who claims her neighborhood is being overwhelmed by glass towers.

      The architect has denied violating zoning rules. But Brewer said the 467-foot-tall high-rise on Third Avenue near 63rd Street is 10,000 SqFt larger than what zoning permits allowed.

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      Brewer sent a letter last Friday to Mayor Bill de Blasio and the Manhattan district attorney’s office requesting for an investigation into how the high-rise was able to get larger than it should of have, citing a private planning consultant who she said uncovered the potential violation.

      The high-rise exposed “egregious lapses” in the DOB’s oversight of developments, Brewer said.

      “If the results of the investigation conclude that the floor area now constructed was, in fact, fraudulent, DOB must order an equivalent amount of footage be removed from the building,” Brewer wrote in her letter, referring to the DOB.

      A DOB spokesperson said the agency was currently examining the zoning challenge over the building’s size brought by Brewer.

      “We scrutinize every new-building application for compliance with the city’s zoning resolution,” the spokesperson, Andrew Rudansky, said in a statement. “As part of this process, we’re currently reviewing and giving careful attention to a community challenge regarding the project at 1059 Third Avenue.”

      The building’s developer, Inverlad Development, said in a statement that the company would “respect the process and defer to the DOB as it reviews its approvals.”

      “We are confident that our team will address any outstanding concerns and meet all requirements to the department’s satisfaction,” the spokeswoman said.

      Manuel Glas is the architect behind the high-rise, who signed the building and zoning permits, said the zoning was reviewed and approved four times by the DOB.

      “I have been an architect for 45 years, have always adhered to a high ethical standard, and will, of course, cooperate with any review of my work on this project,” Glas said in a statement.

      If the DOB determines the high-rise did violate the zoning rules, the developer would have to draft redesign plans. This could involve the removal of five floors, which would bring the building’s total square footage back to code.

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      Removing floors from the building would be a significant operation for the developer. The last time this happened in New York City was in 1991, when a developer on 96th Street, near Park Avenue, had to reduce a 31-story building to 19 stories.

      George M. Janes & Associates reviewed both the zoning drawings and the construction plans for the projected and recognized several significant differences.

      “This building is too big, and it was purposefully too big,” Janes said in an interview. “I review things all the time and find mistakes, but nothing like this. This was purposeful deception.”

      Janes said the floor-area calculations on the zoning documents had wide discrepancies versus the measurements on the blueprints, in both the architect’s drawings and zoning plans. This meant extra space was added for premium condos, without telling the DOB, would allow condos situated at the top part of the building to demand higher prices.

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    Today’s News 6th June 2019

    • Israeli Navy Deploys Drone Boat To Hunt Submarines During War Exercise 

      Seagull, Elbit Systems‘ groundbreaking autonomous vessel recently participated in an Anti-Submarine Warfare (ASW) exercise conducted by the Hellenic and Israeli Navy.

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      The multi-mission drone ship deployed dipping sonar sensors initially designed to be carried by helicopters.

      “The Seagulls’ performance in the exercise demonstrated that operating a dipping sonar onboard such a vessel significantly increases the operational working time while substantially enhancing detection capabilities and the effectiveness of Anti-Submarine Warfare,” said Elbit.

      Three months before the exercise, the Israeli Navy completed a Sea Acceptance Test (SAT) for the dipping sonar (otherwise known as the Helicopter Long-Range Active Sonar (HELRAS)) that was successfully converted from operations on a helicopter to an autonomous boat.

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      The HELRAS was developed in the 1970s by FIAR and British Aerospace to detect submarines. The sensor was used throughout the Cold War for detection of Russian submarines.

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      The Seagull team includes three operators, with two remotely managing the mission and the third monitoring the autonomous navigation.

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      While transiting across the waters, the Seagull can perform real-time detections, mapping, and classification of submarines and mines.

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      The Seagull is not the first autonomous platform to be designed with submarine hunting in mind.

      The autonomous ship “Sea Hunter,” developed by the Defense Advanced Research Projects Agency (DARPA) to hunt submarines, was successfully transferred to the US Navy in 1Q18.

      The US Navy also added a fleet of autonomous submarines with the purchase of four of Boeing’s Orca Extra Large Unmanned Undersea Vehicles (XLUUVs) that will conduct anti-submarine warfare, electronic warfare, mine countermeasures, and strike missions.

      Situational awareness of the sea will lie at the heart of 21st-century ASW and has remained a core mission area for the US Navy.

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      It seems America’s allies and the US Navy are racing towards acquiring new technologies that will better prepare them for future submarine warfare with Russia and or China.

    • Berlin's "Quds Day" Panic Of 2019

      Authored (satirically) by CJ Hopkins via The Unz Review,

      So it appears we managed to survive another terrifying Quds Day in Berlin. It was certainly touch and go there for a while, what with the media issuing hysterical warnings about the hordes of “Hamas and Hezbollah supporters, neo-Nazis, and conspiracy theorists” that were going to materialize out of the ether, goose-step down the Kurfürstendamm, and reenact Kristallnacht, or something. The city was braced for an all-out Perso-Palestinian Quds Day Pogrom, which is always a threat on Quds Day in Berlin, but the hysteria level this year was elevated, due to the Anti-Semitism Pandemic that mysteriously erupted in 2016 for no apparent reason whatsoever.

      OK, what, you’re probably asking, is Quds Day? It’s an annual event initiated by Iran to show support for the Palestinians and opposition to Zionism. It takes place on the last Friday of Ramadan, in opposition to Israel’s Jerusalem Day, the national holiday commemorating Israel’s annexation of East Jerusalem in the aftermath of the Six-Day War.

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      In Berlin, there’s an annual Quds Day march, which the German media typically respond to by whipping up anti-Semitism hysteria and fanatical, guilt-ridden support for Israel. This year was no exception … on the contrary.

      A week or so before the event, Felix Klein, Germany’s “Commissioner for Jewish Life and the Fight Against Anti-Semitism,” warned Jews not to wear kippahs in public, on account of the unprecedented explosion of anti-Semitism throughout the country. According to the interior ministry, there were 62 violent anti-Semitic attacks in Germany during 2018, compared to 37 in 2017, which, in a nation of 83 million people, and with a history of real-life, goose-stepping Nazis, and of perpetrating the Holocaust, and so on … well, you can understand the Commissioner’s alarm.

      The international corporate media began spreading the news that Anti-Semitism was once again on the march in Germany. The BBC reported that official figures showed that 1,646 hate crimes had been committed against Jews in 2018, up 10% from 2017! CNN reported that anti-Semitic hate crimes had increased by almost 20%! According to The Jerusalem Post, there were 1,800 anti-Semitic incidents committed against Jews in 2018! It was almost as if the Anti-Semitism Pandemic was retroactively metastasizing right before our eyes.

      But whatever. The statistics don’t really matter. The point was, “Jews are not safe in Germany!” The Putin-Nazis had teamed up with the Iranian Nazis and the Syrian Nazis, who were backing the Palestinian Nazis, whose irrational hatred of the State of Israel the German Nazis had somehow weaponized (probably with a bunch of fake Facebook ads), and they were all going to storm the historic high-end shopping boulevard of West Berlin!

      Then, on Friday, the day before Quds Day, in a desperate, last-minute, tactical maneuver, German politicians and cultural figures exhorted Jews and gentiles alike to defiantly wear their kippahs on Quds Day. BILD, the leading German tabloid, even printed little cut-out “BILD kippas” (complete with meticulous assembly instructions), and called on Germans to wear them on Quds Day to show their solidarity with State of Israel … uh, sorry, I meant with the Jewish people.

      The BILD kippa tactic was a huge success! On Quds Day, fewer than a thousand people, many of them women and children, peacefully strolled along the Kurfürstendamm chanting slogans like “free, free Palestine,” and asking the world to stop the Israelis from penning people up in de facto ghettos, shooting their legs off with dum dum bullets, demolishing their houses, hospitals, and schools, stealing their land, randomly murdering them, and otherwise behaving like sadistic fascists. The hordes of “Hamas and Hezbollah supporters, neo-Nazis, and conspiracy theorists” that the corporate media had warned us were coming, oddly, never showed their faces … clearly, the “BILD kippas” scared them off.

      Or maybe it was the counter-demonstrators. Hundreds of anti-anti-Semites, including prominent German government officials, Israeli diplomats, Antifa factions, members of the local Jewish community, and BILD susbscribers confronted the march, wearing kippahs, waving Israeli flags, displaying giant “MAGA” banners, shouting “long live Israel” and “free Gaza from Hamas,” and giving the marchers the finger, and so on (which, OK, I found a little confusing, as, the last time I checked, Trump was still Hitler, and Antifa were supposedly a bunch of anarchists).

      In any event, the hysteria has subsided. Berlin and Israel appear to have survived. The Jews can come back out of hiding, although it isn’t quite clear whether Germany wants them to wear their kippahs in public or not now. Hopefully, we’ll be receiving some sort of official directive from Commissioner Klein (or possibly Axel Springer) about that.

      But, seriously, you can’t really blame the Germans for a going a little overboard with their anti-anti-Semitism hysteria or for being reluctant to criticize Israel. It wasn’t all that long ago that their parents and grandparents were heiling Hitler and systematically murdering millions of Jews, or looking the other way while it happened. Most of the Germans I’m acquainted with still feel kind of awful about that. Which isn’t terribly surprising, is it?

      I mean, imagine, if you’re one of my American readers, if some other country conquered the USA, and put our political and military leaders on trial for all the war crimes they’ve committed, and for the millions of people they’ve systematically murdered, and taught our children the truth about our history … that might give you some idea of how most Germans feel about the Nazis and the Holocaust.

      So, yes, Germans are a bit hypersensitive about anything resembling anti-Semitism, and they tend to conflate opposition to Israel with hatred of the Jewish people (despite the fact that Israel is doing a pretty convincing impression of the Nazis, what with its ethnic cleansing, walls, ghettos, sadistic goons, propaganda, and so on). Many Germans also overcompensate for their feelings of shame about the Holocaust by displaying an awkward fascination and enthusiasm for anything “Jewish” (you know, like many liberal Americans fetishize Native and African Americans), so that might explain the “BILD kippa” nonsense.

      No, I’m not mocking or scolding the Germans … they’re still trying to work their history out. I’m just trying to track the propaganda and cynical emotional manipulation that we are increasingly being subjected to as the global capitalist ruling classes wage their War on Populism. The Quds Day Panic of 2019 is just one example. There are many more, both manufactured and all-too-real. The Charlottesville NazisCharlottesville IIThe MAGA bomber. The Tree of Life shooting. The Christchurch attack. Jussie Smollett. MAGA hat Smirk Boy. And the list goes on … pretty much as it always has.

      I’m sorry if this comes as a shock to anyone, but the world has always contained a minority of racist and anti-Semitic whack jobs. They didn’t suddenly start murdering people when Brexit passed and Trump got elected. They’ve been doing that for quite some time. And of course there is still anti-Semitism in Germany. Saxony is crawling with neo-Nazis. And Iran really would like to wipe out Israel, just as Israel would like to wipe out Iran. None of this is in any way new or shocking to anyone who has been paying attention.

      The only thing that has significantly changed since November 8, 2016, is the official narrative we are being fed, in which anyone opposing global capitalism and the hegemony of neoliberal ideology is either a Russian or some kind of Nazi, and a new “anti-Semitism” or “fascism” panic is whipped up for us on a monthly basis.

      The Quds Day Panic of 2019 (like the Charlottesville Kristallnacht of 2017) is going to be rerun, over and over, in endless variations, until 2020, or whenever the global capitalist ruling classes manage to restore Normality. By that time Israeli sports teams will probably be wearing little Palestinians on their caps, Julian Assange will be locked away in Supermax, and satirists like me … well, I think you know.

      *  *  *

      C. J. Hopkins is an award-winning American playwright, novelist and political satirist based in Berlin. His plays are published by Bloomsbury Publishing (UK) and Broadway Play Publishing (USA). His debut novel, ZONE 23, is published by Snoggsworthy, Swaine & Cormorant Paperbacks. He can be reached at cjhopkins.com or consentfactory.org.

    • Do You Believe In UFOs? China Hints At Next Generation Ballistic Missile Test

      UFO sightings across several provinces in China on Sunday was actually a Chinese submarine-launched ballistic missile (SLBM) test. China’s military hinted on social media Monday that it conducted a missile test after it posted a cryptic message about UFOs and a picture of an SLBM, reported the Global Times.

      The People’s Liberation Army (PLA) Rocket Force’s Sina Weibo account, called DF Express, wrote a post Monday evening that said “Do you believe there are UFOs in this world?” with a picture of a ballistic missile in launch position.

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      The Navy then posted on its Weibo account an SLBM test, with a similar message: “Do you believe in UFOs?”

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      PLA forces conducted the SLBM test in the Bohai Sea and Bohai Straits, off the coast of northeastern China, which lines up with dozens of social media reports from residents across various Chinese provinces saying they saw a UFO streak across the sky.

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      Jane’s Defence Weekly said Sunday’s SLBM test could have been China’s next generation SLBM, called the JL-3.

      The JL-3 is China’s third-generation SLBM that will likely deploy with the Type 096 submarine. The new missile is expected to fly further and is capable of carrying more warheads than current SLBMs, Xu Guangyu, a senior consultant at the China Arms Control and Disarmament Association, told the Global Times on Tuesday.

      According to RT, the JL-3 has a range of up to 8,700 miles and can carry ten guided nuclear warheads. The long range of the SLBM allows it to strike Washington without a problem from the Bohai Straits. If China swaps out nuclear warheads with hypersonic gliders, it could be an unstoppable weapon for deterrent purposes.

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      Despite social media posts from the military, there is still no confirmation from Beijing about the launch.

      The missile launch came shortly after the US Department of Defense published its Indo-Pacific Strategy Report, along with the Trump administration raising 25% tariffs on $200 billion of Chinese goods on Saturday.

      Guangyu told the Global Times it’s necessary for China to showcase its new, rapidly growing military strength to counter US provocations.

      And again, more evidence in real-time shows a rising China with impressive military strength is generating structural stress that threatens to dissolve America’s global empire and could eventually lead to a military conflict, otherwise known as Thucydides’s Trap.

    • War Propaganda & The US Military Build-Up Against Iran

      Via Southfront.org,

      Tensions continue to grow in the Persian Gulf.

      In early May, the US deployed the USS Abraham Lincoln strike group as well as the USS Arlington amphibious transport dock, additional marines, amphibious vehicles, rotary aircraft, Patriot missiles and a bomber strike force to the region claiming that this is a needed measure to deter Iran, which allegedly prepares to attack US troops and infrastructure.

      On May 21, Acting Defense Secretary Patrick Shanahan claimed that the US had succeeded in putting the potential of Iranian attacks “on hold.” The declared victory over the mythical “Iranian threats” did not stop the US from a further military buildup.

      On May 25, President Donald Trump declared that the US is sending 1,500 troops, 12 fighter jets, manned and unmanned surveillance aircraft, and a number of military engineers to counter Iran.

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      Trump also approved an $8 billion sale of precision guided missiles and other military support to Saudi Arabia, using a legal loophole. The Trump administration declared an emergency to bypass Congress, citing the need to deter what it called “the malign influence” of Iran.

      The forces deployment was accompanied with a new round of fear-mongering propaganda.

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      On May 24, Adm. Michael Gilday, director of the Joint Staff, issued a statement saying  that “the leadership of Iran at the highest level” ordered a spate of disruptive attacks including those targeting an Aramco Saudi oil pipeline, pumping facilities, the recent sabotage of four tankers near the Strait of Hormuz, as well as a May 19 lone rocket attack on the area near the US embassy in Baghdad. Besides this, he repeated speculations about “credible reports that Iranian proxy groups intend to attack U.S. personnel in the Middle East”. Nonetheless, Adm. Gilday offered nothing that may look like hard proof to confirm these claims.

      On May 28, National Security Adviser John Bolton blamed “naval mines almost certainly from Iran” for the incident with oil tankers off the UAE.

      On May 30, Saudi Arabia’s King Salman went on an anti-Iran tirade during an emergency meeting of Arab leaders hosted in Mecca. He described the Islamic Republic as the greatest threat to global security for the past four decades, repeated US-Israeli accusations regarding the alleged Iranian missile and nuclear activities and urged the US-led bloc to use “all means to stop the Iranian regime” from its regional “interference”.

      Despite the war-like rhetoric of the US and its allies and the recent deployment of additional forces in the region, Washington seems to be not ready for a direct confrontation with Iran right now. The USS Abraham Lincoln strike group remains outside the Persian Gulf, in the Arabian Sea, demonstrating that the Washington establishment respects the Iranian military capabilities and understands that the US Navy might lose face if the carrier were to make an attempt at demonstrating US naval power too close to Iranian shores.

      Iran, in its own turn, stressed that it is not going to step back under these kinds of threats. Iran’s President Hassan Rouhani said that his country would not be coerced into new negotiations under economic sanctions and threat of military action.

      “I favor talks and diplomacy but under current conditions, I do not accept it, as today’s situation is not suitable for talks and our choice is resistance only,” Rouhani said.

      In the coming months, the US-Iranian confrontation in the diplomatic, economic and military spheres will continue to develop. Threats and aggressive actions towards Iran will not go without response. Nonetheless, it is unlikely that Teheran would move to instigate a hot conflict by its own accord, if no red lines, such as a direct attack on Iranian vital infrastructure or oil shipping lines, are crossed.

    • Alabama Passes Bill Requiring Certain Child Molesters To Be Chemically Castrated

      HB 379 in Alabama is a bill that requires certain child sex offenders to undergo chemical castration and, according to Fox News, it is now just awaiting the governor’s signature before becoming law. Unlike physical/surgical castration, chemical castration uses drugs to suppress sexual urges.

      The bill was introduced by Republican state Rep. Steve Hurst and specifically targets sex offenders whose crimes involve anyone under the age of 13. Hurst says that his aim is to reduce the number of sex crimes committed against children by making offenders “think twice” before they act. 

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      Rep. Steve Hurst

      “If we do something of this nature it would deter something like this happening again in Alabama and maybe reduce the numbers,” Hurst continued.

      Hurst said: “They have marked this child for life and the punishment should fit the crime.”

      To add insult to injury, the offender would also have to pay for the procedure. Refusing the procedure would result in a violation of parole, according to the bill. 

      Hurst concluded: “I had people call me in the past when I introduced it and said, ‘Don’t you think this is inhumane?’ I asked them what’s more inhumane than when you take a little infant child, and you sexually molest that infant child when the child cannot defend themselves or get away, and they have to go through all the things they have to go through. If you want to talk about inhumane — that’s inhumane.”

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      Attorney Raymond Johnson said there’s already harsh enough punishment for child molestation. He argues that the bill is going to meet resistance: 

      “They’re going to challenge it under the Eighth Amendment Constitution. They’re going to claim that it is cruel and unusual punishment for someone who has served their time.”

      Several states have already passed similar bills, but it is not known how often the procedure occurs.

      The bill now sits on Gov. Kay Ivey’s desk and awaits her signature. 

    • US Army Officer Urges "Swift, Responsible Disengagement" From Afghanistan

      Authored by Danny Sjursen via The Future of Freedom Foundation,

      The United States has been at war in Afghanistan for more than seventeen years. Despite many years of effort and billions spent, the U.S. military is still suffering casualties in that remote land. In 2017, fourteen American soldiers died in Afghanistan — some, in fact, shot from behind by their supposed local allies. Already, through January 2019, two more American troopers have been killed. They were the 2,418th and 2,419th U.S. military deaths in the war since 2001.

      None of this sacrifice has defeated the Taliban or staved off enemy military advances throughout the country over the last several years.  In fact, there have been a number of spectacular Taliban successes and attacks of late. On August 21, 2018, Afghan President Ashraf Ghani’s speech in the heavily fortified capital city of Kabul was interrupted by dozens of mortar rounds fired by the Taliban. It was no mere anecdotal anomaly.

      In fact, August 2018 was the bloodiest August in terms of Afghan security-force casualties in any of the past 39 years of persistent war. In one district, 100 Afghan commandoes — the pride of the U.S. advisory effort — were slaughtered. In a five-day battle for the city of Ghazni, 100 more soldiers and police were killed, along with 150 civilians, when the Taliban massed 1,000 fighters to rush and briefly seize the city. At least 350 other Afghan National Defense and Security Forces (ANDSF) members were killed this past August. Massive high-casualty Taliban attacks proliferated throughout 2018, and have continued in the new year, with more than 100 Afghan troops killed in a single attack on January 22, 2019. Such casualty levels are, frankly, unsustainable.

      To say the least, the war is not going well. That became inevitable the moment the United States initiated its “nation-building” strategy in 2002, and has remained the case irrespective of the levels of U.S. military and financial investment through the intervening seventeen years. America’s longest war has decidedly not achieved the supposed goal of establishing a liberal democracy in Afghanistan.

      Luckily, in December 2018, Donald Trump announced his tentative decision to begin a U.S. troop withdrawal from Afghanistan and gradually de-escalate this unwinnable war. It remains to be seen, however, whether he will be dissuaded from doing so by a bipartisan, interventionist clique of the media and his own advisors.

      Now is the key opportunity to end this aimless, costly war. As such, two realities should inform U.S. policy in this troubled country.

      First, the seventeen-year active U.S. role in Afghanistan is only part of an intractable, ongoing 39-year war that the U.S. government and military cannot and will not “fix.”

      Second, there is no military solution to the conflict in Afghanistan and it is long past prudent to disengage and bring all U.S. troops home, and simply accept the potential ugliness of Afghanistan — and the world — as it is, rather than how interventionists want things to be.

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      The bottom line

      1. The ongoing campaign in Afghanistan is America’s longest war, yet it has been largely unsuccessful and inconclusive. That is due to a key reality — the U.S. armed forces have gone to prop up the Afghan government, and there is no external military solution to Afghanistan’s ongoing 39-year conflict.

      2. Consistent and even amplified U.S. government spending has not produced, and is not producing, successful outcomes. Current political, economic, and security indicators are trending downward throughout Afghanistan.

      3. Risks to the United States in the way of casualties and monetary costs outweigh any potential benefits. Though casualty levels have decreased consistently with reductions in troop levels, American servicemen and women continue to die in this indecisive war.

      4. Two decades of futile efforts across the Greater Middle East show that armed nation-building does not work. The emergence of a stable, liberal democracy in Afghanistan, while theoretically desirable, is not a legitimate role for the U.S. government and vital national interest, and isn’t an achievable outcome in any event.

      5. The Taliban and homegrown, Afghan Islamist insurgent and terror groups do not present an existential threat to the United States.

      A brief history of a four-decade war

      Historically, Afghanistan has been a decentralized region resistant to foreign invasions or occupations. The modern borders, and concept, of Afghanistan coalesced only with the 1747 foundation of the Durrani Empire. During the 19th century, Afghanistan was a tool and buffer in the “Great Game” between the British and Russian empires in Central Asia. Misplaced British fears of Russia’s southward expansion led to three disastrous Anglo-Afghan Wars between 1842 and 1919. Afghanistan was a moderately stable monarchy in the first three-quarters of the 20th century. During the early Cold War, its government successfully played the United States and its global rival the Soviet Union against one another and received development aid from both.

      However, the 1970s ushered in a persistent slide toward instability.  The opposing Communist and Islamist movements each grew in strength and battled for control.  The Soviet Union intervened in 1979 to prop up the nascent Communist government and waged a 10-year counterinsurgency against various Islamist mujahideen fighters opposed to the secular and socialist reforms of the new government. Despite committing some 120,000 modern troops and suffering tens of thousands of casualties, the Soviets ultimately failed in the face of Islamist-nationalist resistance and U.S military aid provided to the mujahideen through the auspices of the CIA.

      The Soviets withdrew in 1989 and by 1991 both the U.S and Russian governments cut off military aid to the Afghan combatants. Brutal years of civil war followed. The Soviet puppet, Najibullah, held out for three years but fell to a mujahideen coalition in 1992. Afterwards the mujahideen factions fractured and divided the country among venal warlords. In response, in 1993-94, conservative, rural, and frustrated Pashtun clerics and students formed the hyper-Islamist Taliban movement and fought the warlords with increased success, eventually seizing Kabul in 1996. From 1996 to 2001, the Taliban imposed a brutal, archaic, and intolerant regime across most of Afghanistan. Nevertheless, a “Northern Alliance” of mostly minority groups (Tajiks, Uzbeks, and Hazara) continued to resist in the far northern quarter of Afghanistan. During that period, the Saudi international terrorist Osama bin Laden sought and received safe haven from the Taliban regime.

      After the bin Laden-perpetrated 9/11 attacks on New York and Washington, the U.S. military invaded Afghanistan and toppled the Taliban regime, largely destroying or dispersing the al-Qaeda presence in the country. After deposing the Taliban, the United States and NATO made the fateful, and ultimately horrific, decision to shift the mission to nation-building. The continued foreign occupation of the country eventually buttressed the power and influence of the nearly shattered Taliban movement, which now gained strength and began contesting large sections of Afghanistan’s south and east by 2006. Increased violence and instability led to the announcement of a military “surge” by Barack Obama in 2009.  By 2011, nearly 100,000 U.S. service members patrolled Afghanistan, though the Taliban was never decisively defeated. By 2014, the United States transitioned to an advisory mission of training the ANDSF and combatting transnational terror threats. Taliban influence only grew, and by 2018 the enemy contested or controlled a higher percentage of Afghan districts than at any previous time since the 2001 invasion.

      A question of legitimacy

      The Afghan central government in Kabul is largely unpopular and considered by many to be illegitimate. It faces regular criticism from the population and international community for its corruption, division, and inability to guarantee security. As a recent U.S. congressional report concluded, “Afghanistan’s … political outlook remains uncertain, if not negative, in light of ongoing hostilities.” Recent trends indicate that the U.S.-backed federal government is fragmenting along ethnic and ideological lines. That should come as little surprise. The last two presidential elections — in 2009 and 2014 — have been wracked by allegations of fraud, and the Parliamentary elections (scheduled for October 2016) were delayed almost indefinitely. Security is the main issue.  Some 1,000 of 7,400 existing polling stations are now located in areas outside the government’s control. In the last presidential election, the United States had to broker a compromise arrangement between the two leading candidates in order to break the deadlock.

      In recent years, the Uzbek Vice President (and notorious warlord) Abdul Rashid Dostum has criticized President Ghani’s government for favoring Pashtuns at the expense of minority groups. Dostum even fled the country in May 2017, in the wake of accusations of his perpetuation of political violence. That same month, representatives of several ethnic minority parties formed the Coalition for the Salvation of Afghanistan in opposition to the existing federal government. It is unclear whether the center can hold.

      Meanwhile, peace and reconciliation efforts with the Taliban insurgents are ongoing, especially as increased violence has aided the growth of a nationwide peace movement. President Ghani has finally agreed to direct talks with the Taliban “without preconditions,” though the Taliban has largely rejected such initial efforts. In a sign of hope, however, the Taliban did agree to a three-day ceasefire in June 2018. The grassroots peace movement conducted a series of nationwide marches in favor of the cessation of hostilities. After 39 years of perpetual war, it appears that national public momentum increasingly favors an Afghan-brokered peace.

      Moreover, in spite of U.S. boasts regarding the humanitarian advances of post-Taliban Afghanistan, human rights remain a significant issue. Simply put, Afghanistan’s conservative religious and political traditions are persistent and perpetuate the denial of educational and employment opportunities to women and girls. Furthermore, 70 percent of Afghan marriages are still forced; the practice of baad — giving away women in marriage to settle tribal disputes — remains prevalent; there is no national law against sexual harassment and women are still routinely jailed for adultery; men convicted of “honor killings” against adulterous wives, meanwhile, serve only a maximum of two years in prison; and, on several occasions, women’s rights activists have been assassinated. In fact, the number of women jailed for so-called moral crimes has increased by 50 percent since 2011.

      Religious freedom is also severely restricted by the supposedly modern Afghan government.  Members of small religious minority groups — such as Christians, Sikhs, Hindus, and Bahá’ís — face regular discrimination. Specifically, the Afghan Supreme Court declared the Bahá’í faith to be a form of blasphemy — punishable by death under Afghan law.  It is highly questionable whether such an unstable and, ultimately, intolerant government is worthy of U.S. investment and sacrifice.

      Eventually, the Afghan political and military crisis will reach an end state, one that might well end in a negotiated agreement. The Taliban movement is popular in large swaths of eastern and southern Afghanistan — it always has been — and is not going anywhere. It will be a part of Afghanistan’s political and security future.  Such a messy arrangement is essentially a fait accompli, regardless of the levels of U.S. efforts, deaths, or other sacrifices. In the end, this is an Afghan, not an American, problem and it must ultimately be solved by Afghan methods and compromises.

      Weakness and stasis: a deteriorating security situation

      For nearly two decades, one U.S. commanding general after another has assured the American public that — with just a few extra troops and a little more time — he could achieve victory in Afghanistan.  That is particularly disturbing considering the attention and resources dedicated to the war in Afghanistan, especially over the last ten years. After all, early in 2018, a Pentagon spokesman stated that “Afghanistan has become CENTCOM’s main effort.”  Still, despite Chairman of the Joint Chiefs of Staff Gen. Joseph Dunford’s testimony to Congress that the battlefield situation represented “roughly a stalemate,” he and other senior generals have been far more optimistic at times — promising success if only they received more troops, more money, more … everything. In February 2017, the overall commander (the sixth of seven since 2009), Gen. John Nicholson, stated that the United States had a “shortfall of a few thousand” troops, which, if provided, would help “break the stalemate.” One year later, after getting a few thousand troops and a new strategy from Donald Trump, Nicholson stated that “we’ve set all the conditions to win.”

      But results have not matched such optimistic predictions. In February 2018, former Secretary of Defense Chuck Hagel called the situation in Afghanistan “worse than it’s ever been,” and predicted that “the American military can’t fix the problems.” More disturbing, and instructive, are the recent words of a true insider with new, creeping doubts about progress in Afghanistan — a most recent commander of the war. Speaking “from the heart” in a September 2018 farewell address in the ceremony marking his transition out of command, General Nicholson admitted that “it is time for this war in Afghanistan to end.”

      Reality and ground-level metrics have confirmed Nicholson’s suspicions. The Taliban has made gains all around the country in recent years, even showing strength outside their traditional areas of support. They’ve even conducted mass operations briefly seizing major cities such as Kunduz (September 2015), Farah (May 2018), and Ghazni (August 2018). Nationwide, according to the July 2018 Special Inspector General for Afghan Reconstruction (SIGAR) report, 44 percent of Afghan districts are either contested or controlled by the Taliban — the highest rate since 2001. What’s more, just before the Obama surge (often seen as the high tide of Taliban success) that number stood at only 30 percent of Afghan districts. When Obama initially agreed to a surge of nearly 100,000 U.S. troops on the ground, he claimed they were being sent to “reverse the Taliban’s momentum.” Clearly, in the long run that has proved unsuccessful.

      Insurgent successes are largely funded by illicit narcotics, which have long filled the Taliban’s coffers. And, despite on-and-off efforts at drug (specifically opium) eradication, the metrics here are also disturbing.  In November 2017, the United Nations reported that the total area used for poppy cultivation had broken a national record and was up 46 percent from 2016. Furthermore, opium production itself had increased by 87 percent.  Overall, the trend of Afghan security has been downward — this, in spite of nearly seventeen years of varying levels of U.S. military commitment and sacrifice.

    • Baltimore City Cryptocurrency Ransomware Attack Will Cost At Least $18 Million 

      Baltimore has been struggling with an aggressive cyber-attack over the last five weeks, previously profiled here, it has now been revealed the attack will cost the city $18.2 million, reported WBAL-TV 11.

      The cost estimates were disclosed at a recent City Council budget hearing: city officials have already paid $4.6 million for recovery efforts since the ransomware was discovered May 7 and could spend an additional $5.4 million in 2H19. The remaining $8.2 million is from the loss or delayed revenue and loss of interest and penalty income.

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      As of Tuesday, 35% of city employees had their email accounts restored, with the possibility of a full system restore by the end of the week.

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      Some city operations have been shut down for the last month. Public works officials said no residents have received water bills because of the cyber attack.

      Three weeks ago, we reported all essential systems required for transacting real estate deals in the city went offline becuase of the hack.

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      Realtor R.J.Breeden, the owner of The Breeden Group, who has dozens of homes listed throughout the city, said the hack is a loss of confidence in city officials. Breeden said several of his deals last month didn’t close because the title company he uses couldn’t write a deed without accessing lien certifications on city severs.

      Hackers demanded the city pay an $80,000 ransom in Bitcoin on May 7, but Mayor Bernard C. “Jack” Young refused to pay. To be fair, the cost of a full system restore of the city’s servers would have been in the millions of dollars if the ransomware was paid.

      “Even if you pay, you still have to go into your system and make sure they’re out of it. You can’t just bring it back up and believe they are gone. We would bear much of these costs regardless,” Deputy Chief of Staff, Sheryl Goldstein, said.

      Rep. Dutch Ruppersberger was briefed last week by the National Security Agency that the Baltimore ransomware attack had nothing to do with a stolen NSA tool, contrary to our earlier reporting.

      Members of Maryland’s congressional delegation, including Sens. Ben Cardin and Chris Van Hollen and Reps. Ruppersberger, Elijah Cummings, John Sarbanes and David Trone, received a classified government briefing on Monday about the incident.

      “Yesterday, we heard that current evidence suggests the city’s network was infected via a phishing effort by malware known as RobbinHood,” the members said in a statement. “We urge against further speculation until the investigation is complete and look forward to sharing more as we learn more. We are grateful for the FBI’s ongoing efforts and plan to fully engage with DHS to strengthen systems in Baltimore and across the country to keep this from happening in the future.”

      The Baltimore ransomware incident serves as an important reminder that cybersecurity on the municipality level is greatly needed – shows how one cyber attack can paralyze an entire city.

    • How Connecticut's "Tax On The Rich" Ended: Middle-Class Tax Hikes, Lost Jobs, More Poverty

      Authored by Orphe Divounguy, Bryce Hill, Suman Chattopadhyay via IllinoisPolicy.org,

      In the past 30 years, just one U.S. state has adopted a progressive income tax: Connecticut. It made the switch from a flat income tax in 1996, phasing in the progressive income tax over three years.

      The results were disastrous. And they should halt, or at least caution, Illinois lawmakers now pushing to do the same.

      Connecticut’s experience is a warning that switching to a progressive income tax will eventually end in a tax hike on Illinois’ struggling middle class, result in fewer jobs – particularly for those on the margins of the labor force – and increase poverty. It will fail to combat inequality or fix the state’s finances.

      While Connecticut lawmakers sold the progressive tax as a way to provide middle-class tax relief and reduce property taxes, neither occurred. Instead, everyday taxpayers have been hit with recurring income and property tax hikes.

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      The typical Connecticut household has seen its income tax rates increase more than 13 percent since 1999. At the same time, property tax burdens (property taxes as a share of income) have risen by more than 35 percent.

      Making matters even worse, the policy change cost the state’s economy more than $10 billion and 360,000 jobs, ultimately shrinking the labor force by an estimated 362,000 workers.

      The Connecticut progressive income tax failed to fix state finances. In the wake of its progressive income tax experiment, Connecticut has continually raised taxes on the middle class, has a chronic outmigration problem, and finds itself in a financial situation that is just as dire as Illinois’. Connecticut has run state budget deficits in 12 of the past 15 years, and is holding more debt per capita than almost any other state.2

      Illinois Gov. J.B. Pritzker’s argument for the progressive tax relies on the same myths – that a progressive income tax will allow for middle-class tax relief and lower property taxes, and shore up the state’s finances. On the contrary, if Illinois ditches its constitutionally protected flat income tax, Illinoisans will face the same fate as Connecticut – higher taxes for everyone, fewer jobs and an even more sluggish economy.

      INTRODUCTION

      A constitutional amendment filed Jan. 29 by state Sen. Don Harmon, D-Oak Park, would eliminate Illinois’ flat income tax in exchange for a progressive income tax.3 But no one has filed a bill in the current General Assembly telling Illinoisans what the rates would be. Pritzker backed a progressive tax throughout his campaign, but putting the amendment to voters requires its passage by a supermajority in each chamber of the General Assembly; it would not require the governor’s signature.

      As state lawmakers consider scrapping the state’s flat income tax, they should look at what happened in the last state to do so.

      In the past three decades only one state has adopted a progressive income tax. That state was Connecticut, which first introduced a state income tax in 1991 and introduced a graduated rate structure in 1996.

      This report employs the “synthetic control method” as in Abadie and Gardeazabal (2003)4 and investigates the economic impact of the tax changes in Connecticut. A full description of the methodology is included in Appendix A.

      WHAT WERE THE EFFECTS OF THE CONNECTICUT TAX HIKES?

      Connecticut became the last state to enact an income tax in 1991, introducing a flat 4.5 percent income tax rate. In 1996, the state decided to phase in a progressive income tax featuring tax brackets with a 3 percent tax rate and a 4.5 percent tax rate. This income tax relief was short lived. In the time since phasing in the income tax, the median household has seen their income tax rates increase by more than 13 percent. Today, Connecticut has seven income tax brackets with marginal income tax rates ranging from 3 to 6.99 percent.

      Effects of the tax hikes on real GDP

      Connecticut’s decision to enact an income tax had immediate negative effects on the state’s economy, initially costing the state’s economy more than $4 billion, with the economic cost growing to $10 billion following the decision to make the income tax progressive and to gradually raise rates.

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      The effects of the tax changes are consistent with the expert literature on the subject. Economists widely agree that tax hikes have adverse effects on economic output (see Appendix B). They also agree that progressive tax structures reduce economic growth even more than flat tax structures (see Appendix C). Connecticut’s results provide additional evidence that tax increases are highly contractionary.5

      Effects of the tax hikes on the labor market

      Connecticut’s tax changes had similar effects for workers. The tax increase initially cost the state nearly 233,000 jobs and worsened after the switch to a progressive income tax, with the state losing a total of 362,000 jobs.

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      While the progressive income tax is often touted as a way to achieve more equal economic outcomes, employment losses hurt everyone. Job losses after Connecticut’s switch to a progressive tax were primarily concentrated among higher paying jobs, meaning that jobs that allow individuals to move up the income ladder were either destroyed or never created.

      This is a typical experience for states with progressive income taxes. These states tend to have persistently higher income inequality, with the gap between the rich and the poor often growing faster than states with flat or no income taxes.

      These outcomes show why the academic literature remains divided as to whether progressive income taxation reduces inequality (see Appendix D).

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      The initial passage of the flat income tax reduced Connecticut’s labor force by nearly 186,000 individuals. In the time since the income tax became progressive, the job market shrank by 362,000.

      The large declines in the labor force and employment that followed the tax increase aren’t surprising. Blundell (2014) finds that labor force participation, employment and hours worked respond to tax incentives, especially at early and late stages of an individual’s work life.6

      Effects of the tax hike on poverty

      When compared to the rest of the nation, Connecticut has historically been a wealthy state with fewer of its residents falling below the official poverty line. However, following the introduction of an income tax, poverty rates in Connecticut began to increase while falling in other states.7 From 1980 to 1991, before the introduction of the income tax, Connecticut had a poverty rate of 5.5 percent. That rate had soared to 8.1 percent in the period after the progressive income tax was implemented, from 1996 to 2007.

      With fewer jobs available and an increased tax burden, more residents found themselves below the poverty line than before the state began raising its income tax.8

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      After the flat income tax was enacted, 12,000 more Connecticut residents found themselves living in poverty. After the tax became progressive the problem worsened, with 64,000 individuals falling below the line.

      Despite the tax being touted as a tool to combat poverty and help struggling citizens, the policy made matters worse for the most vulnerable. As noted above, while the academic literature is divided as to whether the progressive tax reduces inequality (see Appendix D), in Connecticut, it did not provide relief to lower-income residents and actually increased poverty.

      Did progressive income tax hikes stabilize Connecticut’s budget?

      Connecticut’s progressive income tax hasn’t done anything to alleviate the state’s dire fiscal condition. The state has run budget deficits in 12 of the past 15 years and has more debt per capita than any other state.9 The state is also plagued by persistent population decline driven by domestic outmigration in recent years.

      Lack of structural reforms to the state’s budget has led to years of middle-class tax hikes.

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      WHAT DOES THIS MEAN FOR ILLINOIS?

      Connecticut’s experience suggests Illinois could suffer a similar fate if lawmakers push for a progressive income tax. That means less economic growth, fewer jobs, a shrinking labor force and deterioration in economic conditions that would result in more individuals falling below the poverty line.

      Contrary to claims that a progressive tax would only hit high earners, such a policy would harm everyone. The results in Connecticut suggest the tax led to a large increase in the poverty rate.

      It is worth asking: Who is most at risk of falling below the poverty line in Illinois? The empirical evidence suggests Illinois residents who live in non-metro areas, don’t have college degrees and are non-white are at increased risks of being below the poverty line.10Add a progressive tax, and those most likely to take the hit are Illinois workers who lack a college degree, are minorities and live in rural areas.

      Residents throughout Illinois, particularly in places such as Alexander, Cass, Scott and Pulaski counties would be most harmed. In the Chicago area, residents of Calumet, Cicero, Thornton, Rich Township and Berwyn would be most harmed.

      Instead of protecting Illinois’ most vulnerable residents, a progressive income tax may end up harming already vulnerable communities.

      A BETTER PATH FORWARD

      Rejecting a progressive income tax would spare Illinoisans from Connecticut’s sorry fate. Changes to the state tax code will not fix the structural flaws with the state’s finances or reform the main cost-drivers, pensions and government employee healthcare costs. Those two items have led state spending to increase 48 percent faster than Illinoisans’ personal incomes in the past decade.

      So long as state expenditures continue to outpace the growth in the state’s economy, Illinoisans will be forced to endure tax hikes regardless of the structure of the state income tax. A progressive income tax will only make it easier for politicians to gradually raise middle-class taxes, as in Connecticut.

      A progressive tax is a bad deal for Illinoisans. They would be giving up constitutional protections for an illusory promise from lawmakers to lower taxes for some. But a look at Illinois’ history and the outcomes of progressive tax states show that promise is unlikely to be kept. Any progressive tax rates will almost certainly rise to the level of spending in Springfield – and that means tax hikes on the middle class.

      Illinois’ families and the state’s economy simply can’t afford more tax hikes.

      Illinois is already experiencing the weakest economic expansion in state history, and a progressive income tax hike will only serve to hinder the state’s sluggish economy.

      Instead, Springfield needs to spend within taxpayers’ means. That is why lawmakers should limit growth in spending to the growth in Illinois’ economy – to what taxpayers can afford.

    • Millennial Net Wealth Collapses, Study Finds 

      The net worth of millennials (18- to 35-year-old) has collapsed 34% since 1996, according to a new, shocking report from Deloitte.

      Millennials are financially worse off than any other generation before them. With student loans, auto and credit card debts, rising rents, and out of control, health-care costs have pushed their average net worth below $8,000.

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      Deloitte told The Washington Post that their findings reveal that millennials are delaying home-buying and marriage because of massive debt loads and rising costs are making big ticketed items virtually unaffordable.

      “The narrative out there is that millennials are ruining everything, from breakfast cereal to weddings, but what matters to consumers today isn’t much different than it was 50 years ago,” chief retail officer Kasey Lobaugh told the Post. “Generally speaking, there have not been dramatic changes in how consumers spend their money.”

      Lobaugh described the soaring wealth inequality gap as another reason why young adults have little or no net wealth. In a separate report, we highlighted in April that 60% of millennials don’t have $500 in savings.

      The Post said education expenses had climbed 65% in the past decade. Food prices have increased by 26%, health care costs are up 21%, housing jumped 16%, and transportation costs rose 11%, 

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      Researchers noted that eating out and alcohol expenses made up approximately 11% of total income, about the same amount a decade ago.

      “Only 20 percent of millennials were meaningfully better off in 2017 than they were in 2007, with precious little income left to spend on discretionary retail,” the study said.

      The study showed millennials had delayed the American dream of a house, family, and automobile because of their insurmountable debts.

      Since 2005, retail spending has increased by about 13%, to roughly $3 trillion per year, but Deloitte said much of that growth is due to population increase, not a robust consumer base.

      In the past decade, the income growth of the top 10% of Americans jumped 1,305% more than the bottom 90% of Americans – which means millennials stuck in the gig-economy with multiple jobs and high debt loads will be trapped in a life of financial misery.

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    Today’s News 5th June 2019

    • Fake Saudi Who Swindled Millions From Investors Sentenced In Fraud Scheme

      Miami fraudster Anthony Gignac, 48, who spent several decades impersonating a Saudi prince was sentenced last week to 18 years in prison for defrauding investors out of $8 million, reported the SCMP . The ruse reportedly fell apart when a victim saw him eating pork, which is prohibited in Islam.

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      Gignac went by the name of Prince Khalid al-Saud of Saudi Arabia, who is actually the 79-year-old governor of Mecca, chronicled his life of fraud on Instagram under the name @princedubai_07. About 450 posts show Gignac flaunting exotic watches, driving fancy cars, eating sumptuous meals, and taking luxury vacations.

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      The Miami Herald reported that US District Judge Cecilia Altonaga called him a “mastermind”. Prosecutors said it was at least the 11th time Gignac had been arrested for impersonating a Saudi prince.

      “He was the so-called Saudi prince. He enveloped himself in the trappings of Saudi royalty. He had everyone believing he was a Saudi prince,” Altonaga said.

      He resided on the exclusive Fisher Island in Florida, where his luxury penthouse was called “Sultan.” His bodyguards carried fake badges, and he even had fake diplomatic plates on some of his exotic cars. He went by “prince,” “sultan,” and “his royal highness” and demanded gifts from his business partners—’per royal protocol.’

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      But in actuality, Gignac was a Colombian orphan adopted by a Michigan family in the late 1970s. The Times said he lived a life of crime, arrested 11 times for “prince-related schemes.” Gignac pleaded guilty in March to wire fraud, conspiracy to commit wire fraud, aggravated identity theft and impersonating a diplomat, court documents showed.

      “Over the course of the last three decades, Anthony Gignac has portrayed himself as a Saudi Prince in order to manipulate, victimize, and scam countless investors from around the world,” Ariana Fajardo Orshan, the United States attorney for the Southern District of Florida, said in a statement. “As the leader of a sophisticated, multi-person, international fraud scheme, Gignac used his fake persona — Prince Khalid Bin al-Saud — to sell false hope.”

      The conman had a checkered history: according to The Los Angeles Times, Gignac stole more than US$10,000 from a limousine company and the Beverly Wilshire Hotel in 1991. He pleaded no contest. The New York Times reported that in 2006, Gignac pleaded guilty to charging US$28,000 at Saks Fifth Avenue and Neiman Marcus to the account of a Saudi royal. He also tried to withdraw nearly US$4 million from a Citibank account that did not exist.

      Prosecutors say the scam started in California in 1987, once he had his name changed. He also schemed in Michigan and Florida and used his royal title to extract $8 million from investors for phony worldwide investments. The Los Angeles Times called him the “Prince of Fraud” in 1991 after he was arrested for not paying $10,000 in bills from a limousine company.

      Gignac’s lawyer said he had lived a life of crime was the result of a troublesome childhood in Colombia.

      “The entire blame of this entire operation is on me, and I accept that,” Gignac said at his sentencing, insisting, “I am not a monster.”

      In Gignac’s latest scam, he and a now-dead business partner, Carl Williamson, created a fraudulent investment company, Marden Williamson International, in 2015. They told investors that Gignac was Saudi royalty and that he had access to exclusive deals. A Swiss victim invested US$5 million.

      In 2017, he convinced Jeffrey Soffer, the owner of Miami Beach’s Fountainebleau hotel, that he wanted to invest hundreds of millions of dollars into his famed resort. Soffer gave him US$50,000 in gifts. Soffer caught on when he saw Gignac wolfing down bacon and other pork products at meals. He alerted authorities.

    • How The Allies Guaranteed A 2nd World War

      Authored by Serban V.C. Enache via Hereticus Economicus:

      John Maynard Keynes, as a young adviser to the UK Treasury, successfully predicted another great conflict in Europe after what transpired at the so-called peace of Versailles. In preparation for the conference, Keynes argued that it would be better for Germany to owe no reparations, or a maximum of 2 million pound sterling at the most. He was in favor of a general forgiveness of war debts, including for Britain. Lastly, he wanted the US Government to begin a large credit program to quickly restore Europe to prosperity. But the Allies argued differently, and here is what they insisted on in Article 231 of the Versailles treaty on war debt (1919).

      “The Allied and Associated Governments affirm and Germany accepts the responsibility of Germany and her allies for causing all the loss and damage to which the Allied and Associated Governments and their nationals have been subjected as a consequence of the war imposed upon them by the aggression of Germany and her allies.”

      Let’s compare the cold sentiments of Versailles to the peace of Westphalia from 1648, which put an end to the Thirty Years’ War.

      Article I: “[…] And this Peace must be so honest and seriously guarded and nourished that each part furthers the advantage, honor, and benefit of the other… A faithful neighborhood should be renewed and flourish for peace and friendship, and flourish again.”

      Article II: “On both sides, all should be forever forgotten and forgiven. What has from the beginning of the unrest, no matter how or where, from one side or the other, happened in terms of hostility, so that neither because of that, nor because of any other reason or pretext, should commit, or allow to happen, any hostility, unfriendliness, difficulty, or obstacle in respect to persons, the status, goods, or security himself, or through others, secretly or openly, directly or indirectly, under the pretense of the authority of the law, or by the way of violence within the Kingdom, or anywhere outside of it, and any earlier contradictory treaties should not stand against this. Instead, all and every, from here as well as from there, both before as well as during the war, committed insults, violent acts, hostilities, damages, and costs, without regard of the person or the issue, should be completely put aside, so that everything, whatever the one could demand from the other under his name, will be forgotten in eternity.”

      Keynes described the Versailles conference as a clash of values and world views among the principal leaders, “the cynical traditions of European power politics [vs] the promise of a more enlightened order.” Keynes held Woodrow Wilson as the game maker.

      “When President Wilson left Washington he enjoyed a prestige and a moral influence throughout the world unequalled in history. […] The enemy peoples trusted him to carry out the compact he had made with them; and the Allied peoples acknowledged him not as a victor only but almost as a prophet. In addition to this moral influence the realities of power were in his hands.”

      In 1919, Keynes wrote The Economic Consequences of the Peace in which he criticized the Versailles treaty and its authors, while accurately predicting its grave socio-economic and political effects: high inflation, stagnation, and revanchism.

      He had two main points: that the treaty made it economically impossible for Europe to revive itself, and that the Allies had betrayed the tenets of the Armistice, in which they pledged to the defeated side a degree of fairness with regard to territorial and economic impositions. He judged these violations as a stain on the honor of the Allies and a primary cause for a future conflict. His prediction, that another war would begin in the next twenty years, was surgically precise.

      Keynes wrote:

      “Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth.

      […] Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.

      […] Economic privation proceeds by easy stages, and so long as men suffer it patiently the outside world cares very little. Physical efficiency and resistance to disease slowly diminish, but life proceeds somehow, until the limit of human endurance is reached at last and counsels of despair and madness stir the sufferers from the lethargy which precedes the crisis. The man shakes himself, and the bonds of custom are loosed. The power of ideas is sovereign, and he listens to whatever instruction of hope, illusion, or revenge is carried to them in the air.

      […] But who can say how much is endurable, or in what direction men will seek at last to escape from their misfortunes?”

      Woodrow Wilson’s Fourteen Points [of the Armistice] had been widely disseminated in Germany prior to the end of the war, and were well known by the German public. Sadly, these promises turned out to be nothing but propaganda. The clear gap between this document and the final treaty of Versailles caused great anger in Germany and fueled ultra nationalist sentiments.

      There’s a prevalent myth out there, which states that the nazis came to power in Germany due to hyperinflation. It can be easily debunked through the following observations…

      Germany did experience hyperinflation in the early 1920s. By October 1922, the mark stood at 130 billion to the dollar. Marks had to be carried in wheelbarrows and life savings were wiped out. Yet the inflationary spiral was brought under control in November 1923 largely through the efforts of Hjalmar Schacht, currency commissioner and president of the Reichsbank and Finance Minister Hans Luther. For an in depth explanation of their policies, see this previous article.

      With inflation in check by 1924, Germany entered a time of relative growth. Hitler, while active in German politics, was consigned to the political fringe. Beginning in late 1929, the German economy fell victim to the Great Depression. Industrial production, employment, and sales fell in the early ’30s , while Hitler’s support increased. Price inflation was nonexistent. Rather, by 1933, when Hitler became Chancellor, prices were going down as a result of collapsing demand. Price deflation is good when nominal economic growth is positive, not negative. Tight credit and tremendous unemployment left millions of people with very few marks to spend on anything.

      What brought the nazis to power if not hyperinflation? Austerity! During the years of skyrocketing prices, the percentage of the nazis [NSDAP] ranged below 4 percent (see the 1928 elections). The Government imposed harsh austerity measures in the early 1930s [after the hyperinflation had been reined in]; this increased unemployment drastically and it also gave the nazis their first success (18.5 percent in September 1930). Two years later, the ever growing levels of unemployment and poverty drove Hitler to 37.2 percent in the 1932 elections. This graph speaks for itself.

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      In 5 years time (between ’33 and ’38), the Nazi Government rebuilt the army, built industries and infrastructure, eliminated unemployment, real wage growth was in the double digits – and all of this in a climate of price stability. As such, contrary to popular mythology, the hyperinflation years didn’t bring the nazis to power. What brought them to power was private debt deflation in combination with harsh fiscal austerity.

      The end of WW1 wasn’t the end of ‘the war to end all wars.’ Sadly, it was the groundwork for a new one, far deadlier than the first.

      In an interview with William Buckley, the founder of the British Union of Fascists, Oswald Mosley, explained why Hitler got into power in Germany and why he didn’t in the UK.

      “When I began, in the following six years, right until Roosevelt’s doubling of the price of gold and many other things of that sort, unemployment in Britain was halved. Those six years before Hitler came to power, unemployment in Germany was quadrupled. Now, all those things, and your analysis of the English character, simply depend on the economic situation. Neither fascism, communism, nor any new policy, whether decent, humane, or not, will succeed ever, unless you have a grave economic crisis. That’s the only thing which moves people at all.”

      Liberals are so terrified of the profound psycho-political impact of economic crises [second only to war itself and similar in some ways], they dare not speak of such phenomena even when they are happening, nor admit that crises, even unmediated, have severe psychological consequences. The liberals practice this fetishistic disavowal. That’s why the status quo [the so-called center left and center right] is so dangerous to public order and peace itself. It’s a paradox, and paradoxes are nature’s way of telling us [observers] that we’re missing something, that something new waits to be discovered. By shunning alternate points of view and trying to silence them outright, the center misses the dialectic and loses the moral legitimacy in the eyes of increasingly larger sections of the population. I personally hold the creditors of the Versailles treaty, Britain, France, and the US, responsible for nurturing what was to become the most devastating conflict in human history.

    • Chinese Warships Cause Surprise In Sydney Harbor

      A Chinese frigate, auxiliary replenishment ship, and an amphibious vessel with 700 sailors docked in Sydney, Australia, for an unannounced visit on Monday amid rising anxieties about a rising China in the Indo-Pacific, according to Shanghai Morning Post.

      Prime Minister Scott Morrison was on a diplomatic trip at the time, in the Solomon Islands, a critical region in the South Pacific that China is trying to win over.

      “It may have been a surprise to others, but it certainly wasn’t a surprise to the government,” Morrison told reporters in Solomon’s capital Honiara. “We have known about that for some time.”

      Morrison called the port call a “reciprocal visit because Australian naval vessels have visited China.

      “They were returning after a counter drug trafficking operation in the Middle East,” he added.

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      The visit caught many social media users and academics off guard, with some questioning the port call’s timing and why the government failed to give its citizens advance notice.

      “The People’s Liberation Army (PLA) Navy visit might have been intended as an act of diplomacy, but it’s turning into a public relations disaster for China,” said John Fitzgerald, a China scholar at Swinburne University in Melbourne.

      With closer examination, the vessels appeared to be the Kunlun Shan, an amphibious landing ship; the Luoma Lake, a replenishment ship; and the Xuchang, a modern frigate that is outfitted with advanced missile systems.

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      Rory Medcalf, the head of Australian National University’s National Security College, tweeted that Beijing is making a serious statement by docking its warships in Sydney.

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      Medcalf said historical data shows Chinese military port calls usually involve one vessel, and Sydney isn’t a convenient stopover for vessels returning from the Gulf of Aden.

      “Chinese naval visits to Australia have more typically been a lone frigate, not a task group with an amphibious assault ship and 700 personnel,” tweeted Medcalf.

      “Sydney is hardly a convenient stopover on their way home from the Gulf of Aden. What’s the story here?” he tweeted again.

      “This looks like a serious show of presence in the South Pacific,” he said in another tweet.

      John Blaxland, a professor at the Strategic and Defence Studies Centre at the Australian National University, said: “The Australian Government’s Pacific reset follows a period of some disengagement by Australia and has been, in part at least, triggered by China’s renewed interest in the Pacific – notably the remaining microstates that continue to support Taiwan.”

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      The port call comes about a week after Australian Navy helicopter pilots were hit by lasers while exercising in the South China Sea.

      Australia is determined to be a significant player in the Indo-Pacific region, has recently expanded foreign policy and defense strategy with a greater push to maritime defense and security.

      But as shown earlier this week, Australia has to contend with a rising China and has to make a tough decision soon or later that if it wants to continue challenging China in the Indo-Pacific region, it might risk a shooting war down the road.

    • Surviving Tiananmen: The Price Of Dissent In China

      Authored by Rowena He via The Nation,

      Remembering the Tiananmen Movement is not just about repression… it’s about hope.

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      “Young lovers from China!” a smiling sales lady said as she approached Yu Dongyue and me in a mall on a rainy afternoon in February. It took me a moment to realize that Yu could be taken as an ordinary man with a girlfriend. Yu’s hat covered the scar that he received from brutal beatings. No one could have guessed that he was suffering from severe trauma and mental disorders after 16 years of incarceration marked by torture and solitary confinement as a political prisoner in China.

      I had long featured Yu’s story in my courses on Tiananmen and China, but I’d met him for the first time that day in Indianapolis, where he and his sister settled after escaping China in 2009. In spring 1989, when millions of citizens filled the streets all over China demanding political reforms, Yu was a 21-year-old art editor for the Liuyang Daily, a newspaper in Hunan province. The city of Liuyang also happened to be the hometown of Hu Yaobang, the former secretary general of the Chinese Communist Party (CCP), whose sudden death on April 15, 1989 triggered a nationwide campaign that would become known as the 1989 Tiananmen Movement.

      Hu was a proponent of reform, and students saw his passing as an opportunity to renew their push for change. After students launched a hunger strike in Tiananmen Square, Yu Dongyue and two friends, Yu Zhijian and Lu Decheng, traveled to Beijing to join the protests. Boarding the train, the three men, who would become known in Chinese as the Three Gentlemen of Tiananmen, could not have known it would be a one-way trip.

      On May 23, 1989, Yu and his two friends threw eggshells filled with paint at Mao’s portrait in Tiananmen Square. Instead of applauding their audacity, the students turned them over to the authorities.

      The students wanted to keep their protests separate from those of the workers. There was never an attempt to form a grand alliance to overthrow the regime, as Beijing would later assert. The students also feared that if they didn’t hand over the three young men, the government would have an excuse to crack down on them.

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      Paints mars the portrait of Mao Zedong after Yu Dongyue, Yu Zhijian, and Lu Decheng threw paint-filled egg shells at in May, 1989. (AP Photo / Mark Avery)

      Ten days later, Chinese soldiers equipped with tanks and AK-47s attacked, nonetheless. On June 4, some 200,000 People’s Liberation Army soldiers were deployed to participate in the lethal action. Hu’s successor as CCP general secretary, Zhao Ziyang, refused to order the assault and was purged. He lived under house arrest until his death in 2005. Thus, the Tiananmen Movement was bracketed by the death of one CCP secretary general and the expulsion of another. The fate of these two reform-minded CCP leaders foreshadowed China’s development ever since.

      The Tiananmen Movement remains a taboo topic in China, banned from academic and popular realms. Even the actual number of the dead and wounded remains unknown. In the immediate aftermath, after mass arrests and purges throughout the country, the CCP constructed a narrative portraying the Tiananmen Movement as a Western conspiracy to weaken and divide China. Reporting to the National People’s Congress on June 30, 1989, Beijing Mayor Chen Xitong asserted that the movement was “planned, organized, and premeditated” by those who “unite with all hostile forces overseas and in foreign countries to launch a battle against us to the last.”

      The official justification for the clampdown was that the students were “counterrevolutionaries” who threatened the country’s stability and prosperity. Yet, in 1989, they were hoping the regime would transform itself. They were not seeking regime change, just asking the CCP to live up to its ideals. Their actions were rooted in the Chinese tradition of Confucian dissent—helping the rulers to improve, but not seeking to overthrow them.

      Yu’s experiences are a testimony to the non-revolutionary nature of the movement. During my visit, Yu repeated the phrase: “This was not done by the students or the people.” After Yu and his two friends defaced Mao’s portrait, the students at Tiananmen had inscribed that sentence on a banner in order to disavow their vandalism. The three young men had not tried to run away, and they wrongly assumed the students would be on their side.

      In the end, the Three Gentlemen and the students faced the same charges of counterrevolution. That was the label CCP officials affixed to those who openly disagreed with them. Since the CCP claimed to represent the revolution, anyone criticizing them could be labeled counterrevolutionary. Today, China accuses its critics of “subverting the state,” but, at its core, it’s the same charge.Yu Dongyue was sentenced to 20 years, Lu Decheng to 16 years, and Yu Zhijian to life in prison. Lu escaped to Thailand in 2006, and was later granted asylum in Canada. In 2009, Yu Zhijian and his pregnant wife smuggled themselves out together with Yu Dongyue. They hoped that they could get medical treatment for Yu so that he would recover from his mental disability. Yu’s younger sister fled with her brother in order to take care of him. At great personal cost, she left behind her former husband and her child, neither of whom can leave China to be reunited with her.

      The Three Gentlemen of Tiananmen might not have anticipated the severity of the punishment that they received, but they were not naive about the repression of dissent. Being idealistic in China means being selfish to your loved ones. You choose to fight for your cause, uphold your principles, and stand ready to pay the price—but often family members suffer consequences, too. Prohibiting the children of human-rights lawyers from going to school is a vivid recent example.

      Three decades on, the mothers of Tiananmen victims still cannot openly mourn their children, and exiled student protesters are banned from returning home, even for a parent’s funeral. Many older supporters of the movement, liberal intellectuals in the 1980s, died in exile. One of the Three Gentlemen, Yu Zhijian, died in Indianapolis in 2017, at the age of 54.

      News of Yu Zhijian’s death was accompanied by a photo of his wife kneeling in front of the cardboard box that held his body. Printed on the makeshift coffin were the words, “Handle with care.” On one Chinese website, a comment in English read: “Garbage dead,” another said simply, “Traitor’s ending.”

      For the past 30 years, the CCP has promoted historical amnesia, fostered a narrow and xenophobic nationalism, impeded reflection on historical tragedies and injustice, and stoked a growing enthusiasm for international assertiveness. The recent detentions of young communists on college campuses in China is a reminder that it still doesn’t take much to become a target of the state machinery. Those student leftists were simply doing what the government had told them to do “as successors of the Communist cause.” They formed study groups on Maoism and Marxism, and supported workers’ rights in a state where independent unions are forbidden. But once again, the Communists in power are cracking down on the young communists siding with the powerless.

      Since the Tiananmen massacre, activists, scholars, and regular citizens have launched a war against forgetting. Many Tiananmen veterans, both inside and outside China, including Liu Xiaobo, the late Nobel Peace Prize laureate who died a political prisoner in 2017, have devoted their lives to the unfinished cause of 1989. Commemoration activities are organized in major cities every year. Tens of thousands of people gather in Hong Kong’s Victoria Park annually to demand truth and justice for those who were violently silenced in 1989. The image of thousands of people holding candles has become as iconic as the Tank Man, reminding us that Tiananmen is not just about repression—it’s about hope. Tiananmen symbolizes the struggle for freedom and human rights. Because this longing for basic rights is universal, history will witness the Tiananmen spirit again and again.

    • This New Robot Will Take Millions Of Warehouse Jobs

      The automation wave is expected to dramatically reshape the US economy in the 2020s. This disruption will impact the labor force and cause tremendous job losses. By 2030, automation could eliminate 20% to 25% of current jobs — equivalent to 40 million displaced workers, hitting the bottom 90% of Americans the hardest.

      A new report from The Atlanta Journal-Constitution (AJC) shows how warehouse automation is starting to gain traction in Atlanta, the sixth largest warehousing space in the US.

      The new, robot-powered warehouse in McDonough, Georgia, is currently undergoing pilot tests and will begin operations in June. Project Verte, a start-up trying to compete with Amazon, is responsible for automating the warehouse.

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      The Butler system, an advanced autonomous fleet of mobile robots, uses robotic goods-to-person technology for automated put-away, inventory storage, replenishment, and order picking.

      AJC said the Bulter robots are like “giant Roombas” that move between 6,000 refrigerator-size shelving units lined up in rows 85 deep within the warehouse. An employee summons the robot with a handheld device, it then uses a jack to lift the shelving unit and transports it to the human picker, who then grabs items out of the bins, scans it and hands it off to the packaging department.

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      While there are no other fully automated warehouses in Georgia, the closest one is in Jacksonville, Florida, which uses similar Roomba-like robots.

      In the next 10.5 years, automation is set to eliminate millions of jobs in the warehouse and logistics space, as well as increase the demand for small to medium-sized automated warehouses.

      “I think there’s definitely going to be fewer workers in warehouses, but warehouses are also experiencing labor shortages,” said Nancey Green Leigh, a Georgia Tech professor who studies robots and works with a National Science Foundation grant.

      According to AJC, Atlanta has 683 million square feet of warehouse space, making it the sixth-most largest in the country.

      Once fully operational, the McDonough warehouse will be able to ship 200,000 items per day, aided by a fleet of robots and 400 human pickers, packers, supervisors and technicians.

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      Tye Brady, the chief technologist for Amazon, said rising demand for new technologies [automated warehouses] would lead to job losses.

      Before the Butler system, human pickers could walk up to 12 miles a day shifting items around the warehouse, said Leigh.

      The collision of automation on the labor force will lead to severe economic dislocation that could depress wages and lead to an even wider gap in wealth inequality that would have significant economic and social ramifications. Nevertheless, millions of Americans will lose their jobs. 

    • The Deep State And The Deep Media

      Via Monty Pelerin’s World blog,

      To fully understand the Deep State one need focus on matters both inside and outside of government. The Deep State corrupts everything it touches. Today that includes much of the country.

      The Deep State corrupted the media.

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      The first task of any State is to control the information (propaganda) fed to its citizens. Totalitarian states eliminate any free exchange of opinions. The Soviet Union had a state-run newspaper known as Pravda. It was a monopoly in that no other sources legally provided news. The new Russia pretends it has press freedom, but it controls the media. So does China. Severe penalties, including murder, are used to obtain conformity.

      In the US, we say we have freedom and a “free press.” But do we?

      The answer regarding freedom is increasingly negative, at least when compared with our history. The issue regarding a “free press” is a bit more complicated. America’s press, while not owned by the State, is under similar restrictions as the press in more totalitarian states. These restrictions are not officially codified in law but are understood by the media. They result from the fact that the US government has the power to bankrupt any person or corporation it chooses to target.

      The unlimited resources of the Deep State make it impossible for individuals or corporations to defend themselves. If they come after you, you will lose.  Your limited resources or the resources of even the largest corporation are no match for the unlimited resources of the Deep State. Admission of guilt (even when not guilty) and plea deals (often admitting guilt), are generally the least costly alternative to settling any argument with the State. Often it is necessary to survive such assaults.

      With this kind of power and the willingness to use it, the Deep State need not own corporations.

      The recognition that the Deep State can “kill” any corporation it chooses explains why the “free press” (or literally any other person or company) is not truly free. There is no corporation or individual that does not break the law every day in some manner. These violations are not intentional nor are they even known by the actor. There are too many laws that none of us don’t violate several of them, unknowingly, every day.

      This type of society is not socialism in the normal sense. Actually, it is more like fascism where private ownership is allowed but behavior is so subject to government rules and regulations that it is government that actually drives behavior.

      While we think of the media as independent companies operated in local markets, they are hardly that. Most media giants control local markets. US media (as most large corporations) is “owned” by the State because of the State’s arbitrary and immense regulatory and punative powers. To understand how easy it is to influence/control media, this information sent by a reader is useful:

      This is what you call a  “stacked deck.”   Info like this can be a great benefit to the general public and  help more and more people to wake up to who their real enemies are

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      IF YOU HAD A HUNCH THE NEWS SYSTEM WAS SOMEWHAT RIGGED AND YOU COULDN’T PUT YOUR FINGER ON IT, THIS MIGHT HELP YOU SOLVE THE PUZZLE.

      ABC       News executive producer Ian Cameron is married to Susan Rice,   Obama’s   former National Security Adviser.

      CBS       President David Rhodes is the brother of Ben Rhodes,  Obama’s   Deputy National Security Adviser for Strategic Communications.

      ABC       News correspondent Claire Shipman is married to former  Obama Whitehouse Press Secretary Jay Carney.

      ABC       News and Univision reporter Matthew Jaffe is married to Katie Hogan, Obama’s former Deputy  Press  Secretary   .

      ABC       President Ben Sherwood is the brother of  Obama’s   former Special Adviser Elizabeth Sherwood.

      CNN       President Virginia Moseley is married to former Hillary   Clinton’s Deputy Secretary Tom Nides.

      This is “Huge” and is   only  a ‘partial’ list since the same holds true for NBC/MSNBC and most media outlets.
      Trump has been right all along. Fake News is generated by these incestuous relationships .

      h/t to Roscoe

      Obviously the relationships are more numerous and deeper than those listed above. Compounding the executive conflicts is the crossover between politics and journalism. George Stephanopoulos, John Brennan, Jason Chaffetz, James Clapper and others slide easily from the Deep State into the Deep Media.  The reverse is also common. This incestuousness is not limited to the media.

    • Trade War Backfires On US Hegemony: China May Shift Production To Russia

      President Trump’s efforts to force China to ‘fair’ trade (along with sanctions and/or tariff threats against many other nations in the world) appears more likely to destabilize the unipolar US hegemon than support it.

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      Many multipolar-supporting nations are hording gold, seeking alternative payment systems, and creating bilateral trade agreements between themselves in an effort to skirt US threats (or merely to defend their own sovereignty in the long-run).

      While we have seen China pushing the petro-yuan (rather anti-climactically for now) and Europe pushing INSTEX to enable trade with Iran (still unused for now), RT reports the latest shift away from the US ‘system’ and towards multi-polar collaboration is coming from China, where small and medium-sized enterprises, under pressure from Washington’s trade war, are studying the possibility of moving production to Russia.

      According to the secretary general of the China Overseas Development Association (CODA), He Zhenwei, “many Chinese export-oriented small and medium-sized enterprises are now facing difficulties.”

      “The US has already raised its duties on Chinese goods from 10 percent to 25 percent, which is tantamount to closing its doors. In case American consumers agree to pay more out of their pockets, these companies will be able to raise prices on products by 25 percent, which is hardly probable,” he said.

      In such harsh conditions, Chinese companies are now struggling to maintain their existence.

      “They should think about moving production to Russia,” He said, adding that “Chinese goods produced in Russia could be further sold in the United States and even in Europe.”

      As a reminder, trade between Russia and China saw historic growth last year of around 25 percent to US$108 billion, beating all forecasts. According to Russian President Vladimir Putin, China is and will continue to be Russia’s number one foreign trade partner. He recently said that the two countries are enjoying their best trade and economic ties ever… not something that Makes America Great Again, for sure.

    • For Tech Giants, A Cautionary Tale From 19th Century Railroads On The Limits Of Competition

      Authored by Richard White via ConsortiumNews.com,

      The tech monopoly giants have a lot to learn from the railroad monopolies of the 19th Century during the First Gilded Age…

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      Late 19th-century Americans loved railroads, which seemed to eradicate time and space, moving goods and people more cheaply and more conveniently than ever before. And they feared railroads because in most of the country it was impossible to do business without them.

      Businesses, and the republic itself, seemed to be at the mercy of the monopoly power of railroad corporations. American farmers, businessmen and consumers thought of competition as a way to ensure fairness in the marketplace. But with no real competitors over many routes, railroads could charge different rates to different customers. This power to decide economic winners and losers threatened not only individual businesses but also the conditions that sustained the republic.

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      An 1882 political cartoon portrays the railroad industry as a monopolistic octopus, with its tentacles controlling many businesses. (G. Frederick Keller) 

      That may sound familiar. As a historian of that first Gilded Age, I see parallels between the power of the railroads and today’s internet giants like Verizon and Comcast. The current regulators – the Federal Communications Commission’s Republican majority – and many of its critics both embrace a solution that 19th-century Americans tried and dismissed: market competition.

      Monopolies as Natural and Efficient

      In the 1880s, the most sophisticated railroad managers and some economists argued that railroads were “natural monopolies,” the inevitable consequence of an industry that required huge investments in rights of way over land, constructing railways, and building train engines and rail cars.

      Competition was expensive and wasteful. In 1886 the Atchison, Topeka and Santa Fe Railway and the Missouri Pacific Railroad both built railroad tracks heading west from the Great Bend of the Arkansas River in Kansas to Greeley County on the western border, roughly 200 miles away.

      The tracks ran parallel to each other, about two miles apart. Charles Francis Adams, president of the Union Pacific Railroad, called this redundancy the “maddest specimen of railroad construction of which” he had ever heard. And then his own railroad built new tracks into western Kansas, too.

      After ruinous bouts of competition like this, rival railroad companies would agree to cooperate, pooling the business in certain areas and setting common rates. These agreements effectively established monopolies, even if more than one company was involved.

      Monopolies as Unfairly Subsidized

      Anti-monopolists who opposed the railroads’ power argued that monopolies originated not as a result of efficient investment strategies, but rather from special privileges afforded by the government. Railroads had the ability to condemn land to build their routes. They got subsidies of land, loans, bonds and other financial aid from federal, state and local governments. Their political contributions and favors secured them supporters in legislatures, Congress and the courts.

      As stronger railroads bought up weaker companies and divided up markets with the remaining competitors, the dangers of monopoly became more and more apparent. Railroad companies made decisions on innovation based on the effects on their bottom line, not societal values.

      For instance, the death toll was enormous: In 1893, 1,567 trainmen died and 18,877 were injured on the rails. Congress enacted the first national railroad safety legislation that year because the companies had insisted it was too expensive to put automatic braking systems and couplers on freight trains.

      But a monopoly’s great economic and societal danger was its ability to decide who succeeded in business and who failed. For example, in 1883 the Northern Pacific Railway raised the rates it charged O.A. Dodge’s Idaho lumber company. The new rates left Dodge unable to compete with the rival Montana Improvement Company, reputedly owned by Northern Pacific executives and investors. Dodge knew the game was up. All he could do was ask if they wanted to buy his company.

      For anti-monopolists, Dodge’s dilemma went to the heart of the issue. Monopolies were intrinsically wrong because they unfairly influenced businesses’ likelihood of success or failure. In an 1886 report on the railroad industry, the U.S. Senate Select Committee on Interstate Commerce agreed, stating clearly that the “great desideratum is to secure equality.”

      Turning to Regulators for Help

      To achieve equality, anti-monopolists wanted more government regulation and enforcement. By the late 1880s, some railroad executives were starting to agree. Their efforts at cooperation had failed because railroads treated each other no better than they did their customers. As Charles Francis Adams put it, his own industry’s “method of doing business is founded upon lying, cheating, and stealing: all bad things.”

      The consensus was that the railroads needed the federal government to enforce the rules, bringing greater efficiency and ultimately lower rates. But Congress ran into a problem: If an even, competitive playing field depended on regulation, the marketplace wasn’t truly open or free.

      The solution was no clearer then than it is now. The technologies of railroads inherently gave large operators advantages of efficiency and profitability. Large customers also got benefits: John D. Rockefeller of Standard Oil, for example, could guarantee large shipments and provide his own tank cars – so he got special rates and rebates. Newcomers and small enterprises were left out.

      Some reformers suggested accepting monopolies, so long as their rates were carefully regulated. But the calculations were complex: Charges by the mile ignored the fact that most costs came not from transport but rather from loading, unloading and transferring freight. And even the best bookkeepers had a hard time unraveling railway accounts.

      Managing Power

      The simplest solution, advanced by the Populist party and others, was the most difficult politically:nationalize the railroad routesTurning them into a publicly owned network, like today’s interstate highway system, would give the government the responsibility to create clear, fair rules for private companies wishing to use them. But profitable railroads opposed it tooth and nail, and skeptical reformers did not want the government to buy derelict and unprofitable railroads.

      The current controversy about the monopolistic power of internet service providers echoes those concerns from the first Gilded Age. As anti-monopolists did in the 19th century, advocates of an open internet argue that regulation will advance competition by creating a level playing field for all comers, big and small, resulting in more innovation and better products. (There was even a radical, if short-lived, proposal to nationalize high-speed wireless service.)

      However, no proposed regulations for an open internet address the existing power of either the service providers or the “Big Five” internet giants: Apple, Amazon, Facebook, Google and Microsoft. Like Standard Oil, they have the power to wring enormous advantages from the internet service providers, to the detriment of smaller competitors.

      The most important element of the debate – both then and now – is not the particular regulations that are or are not enacted. What’s crucial is the wider concerns about the effects on society. The Gilded Age’s anti-monopolists had political and moral concerns, not economic ones. They believed, as many in the U.S. still do, that a democracy’s economy should be judged not only – nor even primarily – by its financial output. Rather, success is how well it sustains the ideals, values and engaged citizenship on which free societies depend.

      When monopoly threatens something as fundamental as the free circulation of information and the equal access of citizens to technologies central to their daily life, the issues are no longer economic.

    • China Issues Guidelines For Ranking 1.3 Billion Social Credit Scores

      China’s top economic adviser has issued guidelines over how to introduce incentives that can boost a person’s social credit score, according to ECNS

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      Issued by the National Development and Reform Commission, the new guidelines include 15 preferential policies to evaluate if a person should be considered a ‘role model’ in terms of creditworthiness. 

      Outstanding individuals in the system can freely acquire personal credit reports a number of times in a year, and freely search information in the national credit information online platform, according to the regulation.

      They will also enjoy fast-tracked services when applying for administrative approval, qualification reviews, credit cards or personal loans, patents or copyright registration, and quick refunds from financial institutions or platform companies. –ECNS

      The guidelines also state that role models will have priority access to public elderly care services as well as preferential treatment when applying for civil service positions. 

      Cities are encouraged to reward outstanding individuals with benefits in education, housing, employment, medicare and and administrative approvals. 

      “Keeping trust is glorious and breaking trust is disgraceful,” is the guiding ideology of Beijing’s attempt to crack down on rampant corruption, financial scams, corporate scandals and petty crimes. 

       In the eastern city of Hangzhou, “pro-social” activity includes donating blood and volunteer work, while violating traffic laws lowers an individual’s credit score. In Zhoushan, an island near Shanghai, no-nos include smoking or driving while using a mobile phone, vandalism, walking a dog without a leash and playing loud music in public. Too much time playing video games and circulating fake news can also count against individuals. According to U.S. magazine Foreign Policy, residents of the northeastern city of Rongcheng adapted the system to include penalties for online defamation and spreading religion illegally. –Washington Post

      “Untrustworthy conduct” by both business and individuals includes failure to repay loans, illegal fund collection, false and misleading advertising, swindling customers, and – for individuals, acts such as taking reserved seats on trains or causing trouble in hospitals.

      According to a February report by SCMParound 17.46 million people who are “discredited” were prevented from buying plane tickets, while 5.47 million were disallowed from purchasing tickets to China’s high-speed train system. 

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      Legal experts have expressed concern that the accelerated use of the creditworthiness system trample on what little privacy rights they have in China. 

      “Many people cannot pay their debt because they are too poor but will be subject to this kind of surveillance and this kind of public shaming,” said one attorney quoted by SCMP, who added “It violates the rights of human beings.” 

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