Today’s News 25th October 2018

  • Macron Squirms When Asked About France-Saudi Arms Sales

    French President Emmanuel Macron retreated after journalists asked him whether France would follow Germany’s lead in discontinuing weapons sales to Saudi Arabia after it acknowledged the death of dissident journalist Jamal Khashoggi in its consulate in Istanbul, reports France 24.

    “This has nothing to do with what we’re talking about. Nothing. So I won’t answer that question. I’m sorry but as long as I’ll be in office this is how it will be, whether people like it or not,” a visibly agitated Macron told reporters, adding: “It’s not because one leader says something that I must react to it every time. So I won’t answer that.” 

    On Monday German Chancellor Angela Merkel lashed out at Riyadh, calling Khashoggi’s murder a “monstrosity,” while vowing to halt all German arms sales to the house of Saud until the situation is rectified. 

    Macron previously sought to downplay French arms exports to the Saudis, claiming that they are not a major customer of France. As France24 notes, however, the Saudis were the second largest buyer of French arms from 2008 – 2017, with over 11 billion Euros (US $12.6 billion) spent on munitions, artillery, armored vehicles and tanks. 

    Trudeau doesn’t like the early cancellation fee… 

    Canada’s Prime Minister Justin Trudeau said that his government isn’t likely to cancel a large 2014 contract with Saudi Arabia for armored personnel carriers – blaming the previous administration for including a giant cancellation fee. 

    “There was a contract signed by the previous (Tory) government that makes it extremely difficult for us to withdraw from that contract without Canadians paying exorbitant penalties,” said Trudeau, who added “We are looking at our options.” 

    Both the United States and Great Britain – the first and second largest arms exporters to the Saudis – have been delicately dancing around the Khashoggi case. 

    Brexit Secretary Dominic Raab told the BBC that the killing of the journalist was “terrible” but that London would maintain its close relationship with Riyadh, which buys hundreds of millions of pounds in weapons from Britain each year.

    Highlighting that a “huge number of British jobs” depend on London’s ties with Riyadh, he argued that British influence is best maintained by continuing to talk to the Saudis.

    “We have got one of the most rigorous export regimes in the world which makes sure arms are very carefully monitored,” Raab added.

    President Trump, meanwhile, has suggested it would be a bad idea to scrap a multibillion-dollar US-Saudi arms deal.

  • Media Is Ignoring The Escalating Militarization Of The Arctic

    Authored by Alex Gorka via The Strategic Culture Foundation,

    Europe, the Middle East and Asia-Pacific are not the only potential theaters of military operations. The Arctic is an area of geopolitical rivalry. The situation there is undeservedly kept out of media spotlight. Meanwhile, 2018 has brought new record lows in the extent of sea ice in the region.

    Russia has presented a 1.2 million square kilometers Arctic claim to the UN. Under the UN Convention on the Law of the Sea (UNCLOS), a Coastal state may claim rights to the continental shelf beyond 200 nautical miles by presenting scientific proof that it is a natural prolongation of its continental margin. The Russian Coastal exclusive economic zone can be extended, giving the state exclusive rights to exploit natural resources in the seabed and the ocean. Actually, Russia sits on $8.5 trillion oil reserves.

    Moscow considers the Northern Sea Route (NSR) lying east of Novaya Zemlya and specifically running along the Russian Arctic coast from the Kara Sea, along Siberia, to the Bering Strait as the water area within Russia’s exclusive economic zone (EEZ) in accordance with Article 234 of the 1982 UN Convention on the Law of the Sea. This article grants all littoral states the right, within their exclusive economic zones (200 nautical miles), to pass non-discriminatory laws and regulations concerning navigation in ice-field areas. The US is a signatory but Congress has not ratified the document. Washington does not recognize the Russia’s claims and seeks to internationalize the region.

    The US, Canada, Denmark and Norway have their own claims. The Arctic is believed to hold more than $22 trillion worth of resources hidden beneath the ice, including 90 billion barrels of oil and 47 trillion cubic meters of natural gas. It’s only natural for states to have disputes as long as they are addressed on the basis of international law through negotiations. But the gradual escalation of tensions in the Arctic is a fact.

    According to the Danish government’s 2018-2023 defense guidelines, there will be an impressive 20 percent increase in defense spending in the next six years. The Arctic is mentioned as an area of increased activity and military presence. In summer, Norway recommitted itself to NATO defense spending target of at least 2% of GDP with its new long-term plan for 2021-2024 having this commitment as a key premise. Oslo is to invest in “strategic capabilities”, such as the new F-35 stealth fighter, submarines and P-8 maritime patrol aircraft. Canada is to deploy an Arctic naval flotilla. Last year, Ottawa unveiled a plan to boost its defense spending by 70 percent (or more than $30-billion) over the next decade – much of it going to new warships and fighter jets. The Lomonosov Ridge is the main object of territorial dispute between Russia and Canada. It stretches 1,800 km from the New Siberian Islands cross the Arctic Ocean to the Canadian Ellesmere Island. Canada conducts military exercises in the area. 

    US green berets are training to fight Russia in the region. So US attack submarines are also holding drills. In March, more than 1,500 US military personnel from 20-plus units were brought together for the Arctic Edge 2018 military exercise. The US Coast Guard is looking to “weaponize” its icebreaker ships used to clear paths through the frozen seas. The US has stationed F-22 and F-35 stealth fighters in Alaska. The deployment provides the US with air superiority across the entire northern hemisphere. 

    Russia is implementing the State Policy in the Arctic Till 2020 and for a Future Perspective. The Arctic is a source of threat to Russia. US submarine-launched ballistic missiles fired from the waters near Norway would leave the Russian military less than 15 minutes to decide if an incoming object was a threat of not, where it was coming from, and how to respond. The Arctic is the only location to enable submarine-launched Tomahawks to strike the Russian intercontinental ballistic missiles (ICBMs) bases in the Orenburg and Krasnoyarsk regions, as well as the Urals.

    The Russian Northern Fleet is a joint force comprising 38 large surface ships, over 40 submarines, and an Army Corps including two infantry brigades. The 61st Naval Infantry Brigade is under the Northern Fleet Joint Strategic Command. 7 of 10 combat ready fleet ballistic submarines are based there. About 60% of the operational fleet’s inventory falls on new weapons.

    The Ratnik infantry combat system weighs 19–20 kg. It is designed for operations in the Arctic weather conditions to include a night vision helmet, body armor, communications equipment and headphones. All in all, the set comprises 10 subsystems and about 60 individual items. Weighing 7.5 kg, the class 6 armor protects almost 90% of a soldier’s body from 7,62mm rounds, even if fired at short range. It boasts special protection from detection by infrared devices. Made of lightweight carbon fiber, the exoskeleton supports the musculoskeletal system to help a soldier carry weights up to 50 kg during long distance marches.

    The Strelets-2 voice and video communication system includes a GLONASS navigation module enabling a squad leader to see the location of each soldier on his book-sized computer as well as send videos and photos to headquarters. Besides each soldier has an individual telephone-sized tactical computer.

    The soldiers have the Ruslan all-terrain vehicle, the GAZ-3344-20 all-terrain Tracked Vehicle, and the DT-10PM amphibious carrier. Able to defend airspace from enemy air attacks within a radius of at least 15 kilometers (9 miles), the new Tor-M2DT short-range air defense missile systems is the only system of its class designed specifically for the Arctic region weather conditions. It can protect from homing anti-radiation and cruise missiles, unmanned aerial vehicles, gliders, fixed and rotary wing aircraft. Its DT-30PM platform will be used for Grad and Smerch multiple launch rocket systems.

    The air defense capability is going to be boosted with the S-400 Triumf and upgraded Pantsir-1S self-propelled, medium-range surface-to-air missile systems.

    The T-80BVM is perfectly suited for the specific weather conditions of the Arctic. It is the first Russian operational tank to be fitted with this new explosive reactive armor. Its upgraded gas-turbine engines has better performance in arctic conditions, starting in temperatures as low as 40 degrees Celsius and be ready for action in only minutes. Tanks with conventional diesel engines need some 40 minutes to warm up in Arctic weather conditions.

    This year, Russia unveiled the new Chaborz M-3 buggy destined for operations in the Arctic version. This is a multipurpose lightweight off-road vehicle 4×2 designed for operation by Special Forces units in off-road conditions. It can accelerate it on road to a speed of 130 km/h.

    This year, Ilya Muromets, the first icebreaker built for the Russian Navy in almost 40 years, entered service along with Elbrus logistics support vessel, Admiral Gorshkov Project 22350 frigate equipped with Kalibr long-range cruise missiles, and Ivan Gren large landing ship (Project 11711), the first vessel of the class. Bastion coastal defense missile systems have been deployed in the Murmansk region.

    Academic Pashin tanker (Project 23130) is going through sea trials. Two Arktika-class nuclear double-hulled icebreakers out of six have already been launched. The plans include the construction of Lider, the projected super-powerful nuclear powered icebreaker. The first Ivan Papanin (Project 23550) class multipurpose patrol icebreaker, the lead ship of a series of two, is expected to be delivered to the Russian Navy by 2021. The ship is destined for monitoring and protection of Arctic waters, search and rescue operations, escorting of ships in polar waters, transportation of equipment and towing as well as maintenance and support for auxiliary vessels. It can provide protection for vessels operating in polar waters from air, sea and coastal targets.

    Three more fleet ballistic submarines (Project 955) and three attack nuclear submarines (Project 885) as well as two more frigates (Project 22350) will enter service with the Northern Fleet in near future. Admiral Kuznetsov aircraft carrier will also be back to the ranks after upgrade equipped with the naval version of Pantsir close-in air defense system. Bal coastal defense systems are going to be deployed too.

    The gradual militarization of the region is a reality. There are two options here. One is turning the Arctic into a hotbed where a spark could kindle a big fire. The other launching a full-fledged dialogue to address security issues related to the region. Five of the Arctic Council’s eight members are part of NATO with Sweden and Finland being the privileged partners of the Alliance. It makes the issue part of the Russia-NATO relationship. Russia’s military activities in the region have nothing to do with saber-rattling but it has to protect its legitimate interests.

    The events related to the US decision to leave the INF Treaty, Syria, sanctions wars and other things in focus of public attention should not eclipse this issue of utmost importance. Cooperating with each other is the only way to maintain safety and regional order in the icy region. A coordinated regional approach to Arctic governance under the framework of the Law of the Sea Convention will build confidence and prevent militarization. The time is right for the Arctic Council to turn into a security-focused forum.

  • 'Bloggers' Blasted For Questioning Establishment 'White Helmets' Narrative

    Authored by Rick Sterling via Oriental Review,

    The October 16 issue of NY Review of Books has an article by Janine di Giovani titled “Why Assad and Russia Target the White Helmets”. The article exemplifies how western media promotes the White Helmets uncritically and attacks those who challenge the myth.

    Crude & Disingenuous Attack

    Giovani’s article attacks several journalists by name. She singles out Vanessa Beeley and echoes the Guardian’s characterization of Beeley as the “high priestess of Syria propaganda”. She does this without challenging a single article or claim by the journalist. She might have acknowledged that Vanessa Beeley has some familiarity with the Middle East; she is the daughter of one of the foremost British Arabists and diplomats including British Ambassador to Egypt. Giovanni might have explored Beeley’s research in Syria that revealed the White Helmets founder (British military contractor James LeMesurier) assigned the name Syria Civil Defence despite the fact there is a real Syrian organization by that name that has existed since the 1950’s. For the past several years, Beeley has done many on-the-ground reports and investigations in Syria. None of these are challenged by Giovanni. Just days ago Beeley published a report on her visit to the White Helmets headquarters in Deraa.

    Giovanni similarly dismisses another alternative journalist, Eva Bartlett. Again, Giovanni ignores the fact that Bartlett has substantial Middle East experience including having lived in Gaza for years. Instead of objectively evaluating the journalistic work of these independent journalists, Giovanni smears their work as “disinformation”. Presumably that is because their work is published at alternative sites such as 21st Century Wire and Russian media such as RT and Sputnik. Beeley and Bartlett surely would have been happy to have their reports published at the New York Review of Books, Newsweek or other mainstream outlets. But it’s evident that such reporting is not welcome there. Even Seymour Hersh had to go abroad to have his investigations on Syria published.

    The New McCarthyism

    Max Blumenthal is another journalist singled out by Giovanni. Blumenthal is the author of three books, including a NY Times bestseller and the highly acclaimed “Goliath: Life and Loathing in Greater Israel”. Giovanni describes his transition from “anti-Assad” to “pro-Assad” and suggests his change of perspective was due to Russian influence. She says, “Blumenthal went to Moscow on a junket to celebrate RT’s tenth anniversary. We don’t know what happened during that visit, but afterwards, Blumenthal’s views completely flipped.” Instead of examining the facts presented by Blumenthal in articles such as “Inside the Shadowy PR Firm that’s Lobyying for Regime Change in Syria”, Giovanni engages in fact-free McCarthyism. Blumenthal explained the transition in his thinking in a public interview. He also described the threats he experienced when he started to criticize the White Helmets and their public relations firm, but this is ignored by Giovanni.

    Contrary to Giovanni’s assumptions, some western journalists and activists were exposing the White Helmets long before the story was publicized on Russian media. In spring 2015 the basic facts about the White Helmets including their origins, funding and role in the information war on Syria were exposed in my article “Seven Steps of Highly Effective Manipulators”. The article showed how the White Helmets were a key component in a campaign pushing for a “No Fly Zone” in Syria. It confirmed that the White Helmets is a political lobby force.

    In spring 2016, Vanessa Beeley launched a petition “Do NOT give the Nobel Peace Prize to the White Helmets”. That petition garnered more support than a contrary petition urging the Nobel Prize committee to give the award to the White Helmets. Perhaps because of that, the petition was abruptly removed without explanation from the Change.org website. It was only at this time, with publicity around the heavily promoted nomination of the White Helmets for a Nobel Peace Prize that RT and other Russian media started to publicize and expose the White Helmets. That is one and a half years after they were first exposed in western alternative media.

    White Helmets and Chemical Weapons Accusations 

    Giovanni ignores the investigations and conclusions of some of the most esteemed American journalists regarding the White Helmets and chemical weapons incidents in Syria.

    The late Robert Parry published many articles exposing the White Helmets, for example The White Helmets Controversy and Syria War Propaganda at the Oscars. Parry wrote and published numerous investigations of the August 2013 chemical weapons attack and concluded the attacks were carried out by an opposition faction with the goal of pressuring the US to intervene militarily. Parry also challenged western conclusions regarding incidents such as April 4, 2017 at Khan Shaykhun. Giovanni breathlessly opens her article with this story while Parry revealed the impossibility of it being as described.

    “Buried deep inside a new U.N. report is evidence that could exonerate the Syrian government in the April 4 sarin atrocity and make President Trump look like an Al-Qaeda dupe.”

    Legendary American journalist, Seymour Hersh, researched and refuted the assumptions of Giovanni and the media establishment regarding the August 2013 chemical weapons attacks near Damascus. Hersh’s investigation, titled The Red Line and Rat Line, provided evidence the atrocity was carried out by an armed opposition group with active support from Turkey. A Turkish member of parliament provided additional evidence. The fact that Hersh had to go across the Atlantic to have his investigation published suggests American not Russian disinformation and censorship.

    In addition to ignoring the findings of widely esteemed journalists with proven track records, Giovanni plays loose with the truth. In her article she implies that a UN investigation blamed the Syrian government for the August 2013 attack. On the contrary, the head of the UN investigation team, Ake Sellstrom, said they did not determine who was responsible. We do not have the evidence to say who did what ….The conflict in Syria is surrounded by a lot of rumors and a lot of propaganda, particularly when comes to the sensitive issue of chemical weapons.”

    First Responders or Western Funded Propagandists?

    Giovanni says, “But the White Helmets’ financial backing is not the real reason why the pro-Assad camp is so bent on defaming them. Since 2015, the year the Russians began fighting in Syria, the White Helmets have been filming attacks on opposition-held areas with GoPro cameras affixed to their helmets.”

    In reality, the ‘White Helmets” have a sophisticated media production and distribution operation. They have much more than GoPro cameras. In many of their movie segments one can see numerous people with video and still cameras. Sometimes the same incident will be shown with one segment with an Al-Qaeda logo blending into the same scene with a White Helmets logo.

    Giovanni claims “The Assad regime and the Russians are trying to neutralize the White Helmets because they   are potential witnesses to war crimes.” However the claims of White Helmet “witnesses” have little credibility. The White Helmet “volunteers” are paid three times as much as Syrian soldiers. They are trained, supplied and promoted by the same western states which have sought to regime change in Syria since 2011. An example of misleading and false claims by a White Helmets leader is exposed in Gareth Porter’s investigation titled “How a Syrian White Helmets Leader Played Western Media” . His conclusion could be directed to Giovanni and the NYReview of Books:

    “The uncritical reliance on claims by the White Helmets without any effort to investigate their credibility is yet another telling example of journalistic malpractice by media outlets with a long record of skewing coverage of conflicts toward an interventionist narrative.”

    When the militants (mostly Nusra / Al-Qaeda) were expelled from East Aleppo, civilians reported that the White Helmets were mostly concerned with saving their own and performing publicity stunts. For example the photo of the little boy in east Aleppo looking dazed and confused in the back of a brand new White Helmet ambulance was essentially a White Helmet media stunt eagerly promoted in the West. It was later revealed the boy was not injured, he was grabbed without his parent’s consent. Eva Bartlett interviewed and photographed the father and family for her story “Mintpress Meets the Father of Iconic Aleppo Boy and says Media Lied About his Son”.

    A Brilliant Marketing Success

    The media and political impact of the White Helmets shows what money and marketing can do. An organization that was founded by a military contractor with funding from a western governments was awarded the Rights Livelihood Award. The organization was seriously considered to received the 2016 Nobel Peace Prize just three years after its formation.

    The Netflix infomercial “The White Helmets” is an example of the propaganda. The scripted propaganda piece, where the producers did not set foot in Syria, won the Oscar award for best short documentary. It’s clear that lots of money and professional marketing can fool a lot of people. At $30 million per year, the White Helmets budget for one year is more than a decade of funding for the real Syrian Civil Defence which covers all of Syria not just pockets controlled by armed insurgents.

    Unsurprisingly, it has been announced that White Helmets will receive the 2019 “Elie Wiesel” award from the heavily politicized and pro-Israel Holocaust Memorial Museum in Washington. This, plus the recent “rescue” of White Helmets by the Israeli government, is more proof of the true colors of the White Helmets. Vanessa Beeley’s recent interview with a White Helmet leader in Deraa revealed that ISIS and Nusra terrorists were part of the group “rescued” through Israel.

    The Collapsing White Helmets Fraud

    Giovanni is outraged that some journalists have successfully challenged and put a big dent in the White Helmets  aura. She complains, “The damage the bloggers do is immense.”

    Giovanni and western propagandists are upset because the myth is deflating. Increasing numbers of people – from a famous rock musician to a former UK Ambassador – see and acknowledge the reality.

    As described in Blumenthal’s article, “How the White Helmets Tried to Recruit Roger Waters with Saudi Money”, rock legend Roger Waters says, “If we were to listen to the propaganda of the White Helmets and others, we would encourage our governments to start dropping bombs on people in Syria. This would be a mistake of monumental proportions…”

    Peter Ford, the former UK Ambassador to Syria, sums it up like this:

     “The White Helmets are jihadi auxiliaries… They are not, as claimed by themselves and by their supporters… simple rescuers. They are not volunteers. They are paid professionals of disinformation.”

    Giovanni claims her article is a “forensic take down of the Russian disinformation campaign to distort the truth in Syria.” In reality, Giovanni’s article is an example of western disinformation using subjective attacks on critics and evidence-free assertions aligned with the regime change goals of the West.

  • Cartel Chaos: Tijuana Murders Top 2,000; US Offers $10mln For Cartel Boss 'El Mencho' 

    As a dangerous cartel war erupts in the Mexican border city of Tijuana, a total of 2,000 homicides were reported by government officials in the first ten months of 2018, said Frontera.info, a local Mexican news agency. 

    As of Saturday, a total of 126 homicides were recorded for October, with the new total coming in at 2,005 killings for the year, as per the Attorney General’s Office of the State (PGJE) report. 

    “I believe that there is still a lack of coordination of the authorities of the three orders of the government; this coordination requires the political will and the main one must be the Governor of the State, that the corresponding work be done to have results also in the matter of homicides (translated in English via Google Translator),” said the head of the Citizen Council of Public Security of the State (CCSP), Juan Manuel Hernandez Niebla. 

    Niebla said the record number of homicides for the Tijuana region had caused citizens to seek shelter as the cartel drug war spirals out of control. 

    Tijuana homicides per month during 2018: 

    • January – 191 
    • February -177
    • March – 184
    • April – 212
    • May – 216
    • June – 221
    • July – 253
    • August 211
    • September – 214
    • October – 126 (as of Oct. 20th)

    The Secretary of Municipal Public Safety, Marco Antonio Sotomayor Amezuca, reiterated that a spike in murders is due to a power struggle between two drug cartels: the Sinaloa cartel and the Jalisco Nueva Generacion. 

    “What has been happening in this time is the empowerment of a criminal group that has gained more strength; they began to hear the presence of a foreign cartel and even the authorities do not have much information, it was said that there was no presence and suddenly we realized that there was a presence, even before this administration (translated into English via Google Translator),” Amezuca explained. 

    Last week, the U.S. Government offered an unprecedented $10 million bounty for the leader of the Jalisco Nueva Generacion cartel. 

    Nemesio Ruben Oseguera Cervantes, 52, known as “El Mencho,” is a fugitive and labeled as a major “Kingpin” under the Foreign Narcotics Kingpin Designation Act by the U.S. Department of the Treasury in April 2015. 

    The cartel’s primary business is running methamphetamines into Los Angeles, New York, and Atlanta.  

    Experts have said, “El Mencho” is primarily the reason for the violent flare-up in Tijuana. Drug cartels have recently launched a cartel war for control of Tijuana because of its strategic importance of transporting drugs into the U.S.

    In August, the U.S. Drug Enforcement Administration unveiled a few strategies to combat drug cartels with the Mexican government, military, and the federal police. These plans called for attacking cartels’ financial structure and the creation of a new enforcement program based in Chicago that monitors international investigations of cartels. 

    As long as the American addiction crisis continues to spur demand of low-cost drugs from Mexican drug cartels, the war over US market share between cartels will only get worse.

      

  • US Must Protect Itself Against China Cyber War

    Authored by Richard Fisher via The Epoch Times,

    The storm of controversy has yet to subside following the Oct. 4 Bloomberg Businessweek blockbuster story that San Jose, California-based Super Micro Computer Inc.’s made-in-China computer motherboards were secretly “hacked” by the People’s Liberation Army over a two-year period. Another episode in the China cyberwar saga.

    This particular hack potentially enabled back-door access to the computers of companies such as Apple and Amazon and U.S. government agencies including the Department of Defense, CIA, NSA, and the Navy.

    Immediate security implications for the United States and many other countries are enormous, so it’s not surprising that, weeks later, denials of the report far exceed affirmations.

    The day the story was released, Super Micro, Amazon, and Apple denied being affected, and on Oct. 18 Apple CEO Tim Cook asked Bloomberg to retract its story.

    Officials from the NSA, FBI and Department of Homeland Security have expressed doubts.

    During a U.S. Senate hearing Oct. 9, Kirstjen Nielsen, DHS director, said while DHS did not have evidence to support Bloomberg’s contention of computer supply chain interference, she also said, “It is a very real and emerging threat that we are very concerned about.”

    Also on Oct. 9, Bloomberg reported that “a major U.S. telecommunications company” had removed Super Micro computer hardware deemed “manipulated” by China, citing Yossi Appleboum, cybersecurity expert and former Israeli Army intelligence officer.

    He also told Bloomberg that he has seen similar Chinese manipulations of computer hardware made by various Chinese vendors, noting there are “countless” points in the Chinese supply chain where manipulations can be introduced.

    China Wants to Control Global Cyberspace

    This controversy will continue, but we can pause to consider its first major message: China is engaged in a war to control global cyberspace.

    This is a vital part of its driving ambition to eclipse the United States as the principle global military power and to impose military control over the Earth-Moon system. Furthermore, until the United States can revive Cold War-era-like cooperation among the democratic allies which protects their military dual-use technology and fights back against China’s cyber war, China increasingly will pervert and weaponize the life-enhancing potential offered by digital technologies in its effort to contain and eventually dominate us.

    A stark lesson in the pitfalls of cyber-hubris was offered by former President Bill Clinton, who in an October 2000 speech argued for China to be allowed to join the World Trade Organization. He stated the internet would “change China,” suggesting it would weaken Chinese Communist Party (CCP) control.

    Today, CCP totalitarianism is enhanced by its control over its internet Great Wall, which isolates Chinese from the global web; allows increasingly intimate control over them via “smart cities” that record their physical movement; and enables future “social credit scores” that will grade their online support for the CCP in order to determine access to better cities, education, and jobs.

    Could China someday assign similar social credit scores to everybody who works or plays online?

    The China-Super Micro Connection

    To do so, China would require the kind of global backdoor access to computer systems said to have been provided by the Chinese contractors making the hardware for Super Micro.

    This past January, it was reported that for five years the new African Union headquarters built by China also has been hacked to send confidential information back to China.

    Governments increasingly ban or discourage relying on Chinese telecommunication equipment vendors like Huawei or ZTE, while since October 2016 the Pentagon has warned against using Chinese-made Lenovo computers.

    Add to this China’s pervasive 24-7 mining of global computer networks, and its specific attacks against companies and databases to amass military, economic, political, and personal data.

    This becomes deadly serious considering that in late 2015 the People’s Liberation Army created a new military service, the Strategic Support Force, to ensure China wins in new battlefields dominated by cyber warfare, databases, electronic warfare, energy weapons, and space warfare.

    If China can stealthily “manipulate” their computer hardware, it might also be able to turn against us our future unmanned weapons, made deadlier with advances in artificial intelligence.

    Thinking of waging a war against an interest of China’s? It may not be unreasonable to expect your officers, soldiers, and their families to receive dissuasive robocalls from China as the opening move in a much more destructive cyber assault. Imagine how China might seek to manipulate your future “brain chip,” especially if it was made in China.

    Consequently, as the Trump administration has sought to illustrate in an Oct. 5 report on the U.S. manufacturing and defense industrial base, the United States must invest in reviving domestic American sources for military-critical industries, including those feeding our electronic infrastructure.

    Washington also must go on the offensive. It should seek to revive proven institutions like the former Coordinating Committee for Multilateral Export Controls to better control China’s access to Western military technology.

    There is also a need for a multilateral cyber and information campaign that exploits China’s cyber weaknesses. For example, obtaining the ability to manipulate the internet social credit scores of 300 million Chinese could turn up the political heat on the 90 million members of the CCP.

  • "A Game-Changing And Lifesaving Capability" – Robots That Deploy Other Robots 

    FLIR Systems Inc., based in Wilsonville, Oregon, has developed a self-contained housing and launch unit for the world’s smallest combat-proven nano-unmanned aerial system. The launcher can mount to any vehicle, including uncrewed ground vehicles. 

    FLIR Black Hornet 3 

    The Black Hornet Vehicle Reconnaissance System (VRS) debuted on Oct. 09 at the Annual Meeting and Exposition of the Association of the U.S. Army (AUSA) in Washington, D.C. The new launcher features the Black Hornet 3 nano-unmanned aerial vehicle (UAV) designed for the military, government agencies, and first responder vehicle-mounted operations. 

    FLIR Black Hornet 3 debuting at AUSA in Washington, D.C.

    The launch unit includes slots for four Black Hornet 3 drones, each the size of a hummingbird, plus an electrical charging station within. With the flip of a switch, the launcher opens, a drone pops out and takes flight. 

    “The Black Hornet combines with the VRS to create a real-time situational awareness (RSTA) airborne system for warfighters protected inside a vehicle. The Black Hornet VRS includes launch unit that holds multiple Black Hornet UAVs and mounts to the exterior of any military vehicles, including armored personnel carriers, infantry fighting vehicles, and light utility vehicles. Operators inside a vehicle can use an integrated battle management system or only a display to launch and fly the Black Hornet on its mission. The complete system is easily integrated with modern battlefield management systems and is vehicle platform dependent,” said FLIR press release.  

    According to the Black Hornet 3’s customer brochure, the GPS-guided drone has roughly 25-minutes of flight time depending on weather conditions, and has a range of over 1 mile, “it can fly from outdoors into buildings or caves, and help asses a situation before putting personnel in harm’s way.” 

    Mount the Black Hornet VRS on top of a robotic reconnaissance vehicle or a remote controlled-tank, and the military-industrial complex has a wartime robot deploying small unmanned scouts to extend its field of view. “A game-changing and lifesaving capability,” according to FLIR. 

    Black Hornet VRS mounted on a robot 
    Black Hornet 3 flying over robot tank 
    Black Hornet 3 flying over robot tank 

    Stuard Russell, a professor of computer science and engineering at the University of California, Berkley, spoke with Motherboard about robots deploying robots, especially the FLIR VRS system. 

    Russell gives an ominous warning that the Black Hornet 3 combined with VRS is like something out of the Terminator. If terrorists were able to weaponize these miniature drones, it would be a perfect tool for a mass casualty event, he said. “I estimate, for example, that roughly one million lethal weapons can be carried in a single container truck or cargo aircraft, perhaps with only two or three human operators rather than two or three million, Russell wrote by email to Motherboard.

    “Such weapons would be able to hunt for and eliminate humans in towns and cities, even inside buildings. They would be cheap, effective, unattributable, and easily proliferated once the major powers initiate mass production and the weapons become available on the international arms market,” Russell warned.  

    Drones deploying other drones — what could possibly go wrong? Not too long ago, the FBI director delivered a written testimony to the U.S. Senate Homeland Security and Government Affairs Commitee in which he warned about the increasing threat from weaponized drones by Al-Qaeda, ISIS, MS-13, and Mexican drug cartels. 

  • Has America Become A Dictatorship Disguised As A Democracy?

    Authored by John Whitehead via The Rutherford Institute,

    “The poor and the underclass are growing. Racial justice and human rights are nonexistent. They have created a repressive society and we are their unwitting accomplices. Their intention to rule rests with the annihilation of consciousness. We have been lulled into a trance. They have made us indifferent to ourselves, to others. We are focused only on our own gain.”—They Live, John Carpenter

    We’re living in two worlds, you and I.

    There’s the world we see (or are made to see) and then there’s the one we sense (and occasionally catch a glimpse of), the latter of which is a far cry from the propaganda-driven reality manufactured by the government and its corporate sponsors, including the media.

    Indeed, what most Americans perceive as life in America – privileged, progressive and free – is a far cry from reality, where economic inequality is growing, real agendas and real power are buried beneath layers of Orwellian doublespeak and corporate obfuscation, and “freedom,” such that it is, is meted out in small, legalistic doses by militarized police armed to the teeth.

    All is not as it seems.

    “You see them on the street. You watch them on TV. You might even vote for one this fall. You think they’re people just like you. You’re wrong. Dead wrong.”

    This is the premise of John Carpenter’s film They Live, which was released 30 years ago in November 1988 and remains unnervingly, chillingly appropriate for our modern age.

    Best known for his horror film Halloween, which assumes that there is a form of evil so dark that it can’t be killed, Carpenter’s larger body of work is infused with a strong anti-authoritarian, anti-establishment, laconic bent that speaks to the filmmaker’s concerns about the unraveling of our society, particularly our government.

    Time and again, Carpenter portrays the government working against its own citizens, a populace out of touch with reality, technology run amok, and a future more horrific than any horror film.

    In Escape from New York, Carpenter presents fascism as the future of America.

    In The Thing, a remake of the 1951 sci-fi classic of the same name, Carpenter presupposes that increasingly we are all becoming dehumanized.

    In Christine, the film adaptation of Stephen King’s novel about a demon-possessed car, technology exhibits a will and consciousness of its own and goes on a murderous rampage.

    In In the Mouth of Madness, Carpenter notes that evil grows when people lose “the ability to know the difference between reality and fantasy.”

    And then there is Carpenter’s They Live, in which two migrant workers discover that the world is not as it seems. In fact, the population is actually being controlled and exploited by aliens working in partnership with an oligarchic elite. All the while, the populace—blissfully unaware of the real agenda at work in their lives—has been lulled into complacency, indoctrinated into compliance, bombarded with media distractions, and hypnotized by subliminal messages beamed out of television and various electronic devices, billboards and the like.

    It is only when homeless drifter John Nada (played to the hilt by the late Roddy Piper) discovers a pair of doctored sunglasses—Hoffman lenses—that Nada sees what lies beneath the elite’s fabricated reality: control and bondage.

    When viewed through the lens of truth, the elite, who appear human until stripped of their disguises, are shown to be monsters who have enslaved the citizenry in order to prey on them. 

    Likewise, billboards blare out hidden, authoritative messages: a bikini-clad woman in one ad is actually ordering viewers to “MARRY AND REPRODUCE.” Magazine racks scream “CONSUME” and “OBEY.” A wad of dollar bills in a vendor’s hand proclaims, “THIS IS YOUR GOD.”

    When viewed through Nada’s Hoffman lenses, some of the other hidden messages being drummed into the people’s subconscious include: NO INDEPENDENT THOUGHT, CONFORM, SUBMIT, STAY ASLEEP, BUY, WATCH TV, NO IMAGINATION, and DO NOT QUESTION AUTHORITY.

    This indoctrination campaign engineered by the elite in They Live is painfully familiar to anyone who has studied the decline of American culture.

    A citizenry that does not think for themselves, obeys without question, is submissive, does not challenge authority, does not think outside the box, and is content to sit back and be entertained is a citizenry that can be easily controlled.

    In this way, the subtle message of They Live provides an apt analogy of our own distorted vision of life in the American police state, what philosopher Slavoj Žižek refers to as dictatorship in democracy, “the invisible order which sustains your apparent freedom.”

    We’re being fed a series of carefully contrived fictions that bear no resemblance to reality.

    The powers-that-be want us to feel threatened by forces beyond our control (terrorists, shootersbombers).

    They want us afraid and dependent on the government and its militarized armies for our safety and well-being.

    They want us distrustful of each other, divided by our prejudices, and at each other’s throats.

    Most of all, they want us to continue to march in lockstep with their dictates.

    Tune out the government’s attempts to distract, divert and befuddle us and tune into what’s really going on in this country, and you’ll run headlong into an unmistakable, unpalatable truth: the moneyed elite who rule us view us as expendable resources to be used, abused and discarded.

    In fact, a study conducted by Princeton and Northwestern University concluded that the U.S. government does not represent the majority of American citizens. Instead, the study found that the government is ruled by the rich and powerful, or the so-called “economic elite.” Moreover, the researchers concluded that policies enacted by this governmental elite nearly always favor special interests and lobbying groups.

    In other words, we are being ruled by an oligarchy disguised as a democracy, and arguably on our way towards fascism—a form of government where private corporate interests rule, money calls the shots, and the people are seen as mere subjects to be controlled.

    Not only do you have to be rich—or beholden to the rich—to get elected these days, but getting elected is also a surefire way to get rich. As CBS News reports, “Once in office, members of Congress enjoy access to connections and information they can use to increase their wealth, in ways that are unparalleled in the private sector. And once politicians leave office, their connections allow them to profit even further.”

    In denouncing this blatant corruption of America’s political system, former president Jimmy Carter blasted the process of getting elected—to the White House, governor’s mansion, Congress or state legislatures—asunlimited political bribery… a subversion of our political system as a payoff to major contributors, who want and expect, and sometimes get, favors for themselves after the election is over.”

    Rest assured that when and if fascism finally takes hold in America, the basic forms of government will remain: Fascism will appear to be friendly. The legislators will be in session. There will be elections, and the news media will continue to cover the entertainment and political trivia. Consent of the governed, however, will no longer apply. Actual control will have finally passed to the oligarchic elite controlling the government behind the scenes.

    Sound familiar?

    Clearly, we are now ruled by an oligarchic elite of governmental and corporate interests.

    We have moved into “corporatism” (favored by Benito Mussolini), which is a halfway point on the road to full-blown fascism. 

    Corporatism is where the few moneyed interests—not elected by the citizenry—rule over the many. In this way, it is not a democracy or a republican form of government, which is what the American government was established to be. It is a top-down form of government and one which has a terrifying history typified by the developments that occurred in totalitarian regimes of the past: police states where everyone is watched and spied on, rounded up for minor infractions by government agents, placed under police control, and placed in detention (a.k.a. concentration) camps.

    For the final hammer of fascism to fall, it will require the most crucial ingredient: the majority of the people will have to agree that it’s not only expedient but necessary.

    But why would a people agree to such an oppressive regime?

    The answer is the same in every age: fear.

    Fear makes people stupid.

    Fear is the method most often used by politicians to increase the power of government. And, as most social commentators recognize, an atmosphere of fear permeates modern America: fear of terrorism, fear of the police, fear of our neighbors and so on.

    The propaganda of fear has been used quite effectively by those who want to gain control, and it is working on the American populace.

    Despite the fact that we are 17,600 times more likely to die from heart disease than from a terrorist attack; 11,000 times more likely to die from an airplane accident than from a terrorist plot involving an airplane; 1,048 times more likely to die from a car accident than a terrorist attack, and 8 times more likely to be killed by a police officer than by a terrorist , we have handed over control of our lives to government officials who treat us as a means to an end—the source of money and power.

    As the Bearded Man in They Live warns, “They are dismantling the sleeping middle class. More and more people are becoming poor. We are their cattle. We are being bred for slavery.”

    In this regard, we’re not so different from the oppressed citizens in They Live

    From the moment we are born until we die, we are indoctrinated into believing that those who rule us do it for our own good. The truth is far different.

    Despite the truth staring us in the face, we have allowed ourselves to become fearful, controlled, pacified zombies.

    We live in a perpetual state of denial, insulated from the painful reality of the American police state by wall-to-wall entertainment news and screen devices.

    Most everyone keeps their heads down these days while staring zombie-like into an electronic screen, even when they’re crossing the street. Families sit in restaurants with their heads down, separated by their screen devices and unaware of what’s going on around them. Young people especially seem dominated by the devices they hold in their hands, oblivious to the fact that they can simply push a button, turn the thing off and walk away. 

    Indeed, there is no larger group activity than that connected with those who watch screens—that is, television, lap tops, personal computers, cell phones and so on. In fact, a Nielsen study reports that American screen viewing is at an all-time high. For example, the average American watches approximately 151 hours of television per month.

    The question, of course, is what effect does such screen consumption have on one’s mind?

    Psychologically it is similar to drug addiction. Researchers found that “almost immediately after turning on the TV, subjects reported feeling more relaxed, and because this occurs so quickly and the tension returns so rapidly after the TV is turned off, people are conditioned to associate TV viewing with a lack of tension.” Research also shows that regardless of the programming, viewers’ brain waves slow down, thus transforming them into a more passive, nonresistant state.

    Historically, television has been used by those in authority to quiet discontent and pacify disruptive people. “Faced with severe overcrowding and limited budgets for rehabilitation and counseling, more and more prison officials are using TV to keep inmates quiet,” according to Newsweek.

    Given that the majority of what Americans watch on television is provided through channels controlled by six mega corporations, what we watch is now controlled by a corporate elite and, if that elite needs to foster a particular viewpoint or pacify its viewers, it can do so on a large scale.

    If we’re watching, we’re not doing.

    The powers-that-be understand this. As television journalist Edward R. Murrow warned in a 1958 speech:

    We are currently wealthy, fat, comfortable and complacent. We have currently a built-in allergy to unpleasant or disturbing information. Our mass media reflect this. But unless we get up off our fat surpluses and recognize that television in the main is being used to distract, delude, amuse, and insulate us, then television and those who finance it, those who look at it, and those who work at it, may see a totally different picture too late.

    This brings me back to They Live, in which the real zombies are not the aliens calling the shots but the populace who are content to remain controlled.

    When all is said and done, the world of They Live is not so different from our own. 

    We, too, are focused only on our own pleasures, prejudices and gains. Our poor and underclasses are also growing. Racial injustice is growing. Human rights is nearly nonexistent. We too have been lulled into a trance, indifferent to others.

    Oblivious to what lies ahead, we’ve been manipulated into believing that if we continue to consume, obey, and have faith, things will work out. But that’s never been true of emerging regimes. And by the time we feel the hammer coming down upon us, it will be too late.

    So where does that leave us?

    The characters who populate Carpenter’s films provide some insight.

    Underneath their machismo, they still believe in the ideals of liberty and equal opportunity. Their beliefs place them in constant opposition with the law and the establishment, but they are nonetheless freedom fighters. 

    When, for example, John Nada destroys the alien hyno-transmitter in They Live, he restores hope by delivering America a wake-up call for freedom.

    That’s the key right there: we need to wake up.

    Stop allowing yourselves to be easily distracted by pointless political spectacles and pay attention to what’s really going on in the country.

    The real battle for control of this nation is not being waged between Republicans and Democrats in the ballot box.

    As I make clear in my book Battlefield America: The War on the American People, the real battle for control of this nation is taking place on roadsides, in police cars, on witness stands, over phone lines, in government offices, in corporate offices, in public school hallways and classrooms, in parks and city council meetings, and in towns and cities across this country.

    The real battle between freedom and tyranny is taking place right in front of our eyes, if we would only open them.

    All the trappings of the American police state are now in plain sight.

    Wake up, America.

    If they live (the tyrants, the oppressors, the invaders, the overlords), it is only because “we the people” sleep.

  • ECB Preview: What Does Draghi Really Think About Italy

    Submitted by RanSquawk

    The ECB Monetary Policy decision is due at 13:45 CET, 07:45 EDT, On Thursday 25th October 2018, with the press conference 45 minutes later. Unanimous expectations look for the ECB to leave its three key rates unchanged while markets await any updates on the bank’s assessment of Europe’s economy and the bank’s reinvestment policy after Draghi stated the issue will be discussed before the end of 2018. Draghi likely to be grilled on the Bank’s concerns over Italy’s budgetary demands.

    BACKGROUND

    PREVIOUS MEETING: As was the case with the July meeting, September’s policy announcement delivered little in the way of fireworks with the governing council’s statement broadly unchanged from the prior release. The press conference saw Draghi note that incoming data confirmed the Bank’s previous assessment that growth is broad-based, inflation is rising and the strength of the economy supports confidence. In terms of the latest economic projections, 2018 and 2019 growth forecasts were lowered to 2.0% and 1.8% respectively with all other projections maintained. Furthermore, Draghi gave very little away with regards to the Bank’s intentions for further policy normalisation by stating that the ECB’s first rate hike was not discussed. Draghi also stated that reinvestments were not discussed but would be at one of the meetings before the end of 2018.

    ECB MINUTES: ECB minutes drew little in the way of a market reaction with the release more of an account on the governing council’s view on the Eurozone economy rather than any insight into what policy discussions took place. The release highlighted the view that factors behind the growth slowdown may not be transitory, trade tensions could lead to a more general decline in confidence and that the adverse effects of trade tensions have been so far limited but might still impact the euro area over time.

    SOURCE REPORTS: In the immediate aftermath of the meeting, sources revealed that a few ECB policymakers wanted the September policy message to say risks were tilted to the downside. Elsewhere, sources on October 11th reported that the Bank would not come to the rescue of Italy if the government and banks run out of cash unless an EU bailout is in place.

    ECB RHETORIC: One of the most notable interjections seen since the previous meeting came from ECB President Draghi who stated that he sees a vigorous pick-up in underlying inflation. This was met with a hawkish reaction by the market. However, the comments appeared to be the policymaker justifying the economic projections released at the September meeting and thus wasn’t necessarily new information; a view point that was backed up by Praet the following day. Knot recently stated that the ECB are comfortable with the wording of forward guidance adding that a hike may come sooner or later than guided. Knot even went on to state that one potential option for the Bank would be publishing how many times they intend to raise rates in a given year. Elsewhere, Chief Economist Praet recently suggested that the market had moved a little too dovish.

    DATA: On the growth front, HSBC highlight that the most recent growth forecasts from the Bank could be in jeopardy with analysts suggesting that the ECB’s references to soft manufacturing activity in the September minutes could make a Q3 0.5% GDP print unlikely. From an inflation perspective, Eurozone CPI in September remained at 2.1% Y/Y, however, the super-core metric remains subdued at 0.9% Y/Y and thus is showing little sign of gaining momentum. The latest survey data from the Eurozone was relatively unencouraging with the composite EZ metric slipping to 52.7 from 54.1 with Markit noting the multi-bloc economy grew at its slowest level in over two years whilst expectations of future growth slipped to the lowest for nearly four years

    CURRENT ECB FORWARD GUIDANCE (INTRODUCTORY STATEMENT)

    RATES: We continue to expect them to remain at their present levels at least through the summer of 2019, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to levels that are below, but close to, 2% over the medium term. (Sep 13th)

    ASSET PURCHASES: After September 2018, we will reduce the monthly pace of the net asset purchases to €15 billion until the end of December 2018 and we anticipate that, subject to incoming data confirming our medium-term inflation outlook, we will then end net purchases. We intend to reinvest the principal payments from maturing securities purchased under the APP for an extended period of time after the end of our net asset purchases, and in any case for as long as necessary to maintain favourable liquidity conditions and an ample degree of monetary accommodation. (Sep 13th)

    GROWTH/TRADE: The risks surrounding the euro area growth outlook can still be assessed as broadly balanced. At the same time, risks relating to rising protectionism, vulnerabilities in emerging markets and financial market volatility have gained more prominence recently. (Sep 13th)

    INFLATION: The underlying strength of the economy continues to support our confidence that the sustained convergence of inflation to our aim will proceed and will be maintained even after a gradual winding-down of our net asset purchases. (Sep 13th)

    POTENTIAL ADJUSTMENTS TO ECB FORWARD GUIDANCE (INTRODUCTORY STATEMENT)

    RATES: No adjustments expected on this front. Even ECB-hawk Knot has suggested that such adjustments on rate guidance wouldn’t be discussed until early next year. That said, HSBC suggest that some at the ECB “might be starting to worry that, having tied its hands too tightly with its forward guidance, it might miss the chance to raise rates”. As such, HSBC believe that if the ECB remain confident in their ability to fulfil their inflation objectives, Draghi at some stage will need to “hammer home the message that markets should expect a rate hike, sooner rather than later”.

    ASSET PURCHASES: The central bank will likely signal that purchases will continue to run at EUR 15bln a month until December with GS suggesting that the bar to an extension is simply too high. Instead of an extension to policy, market focus continues to remain on the Bank’s plans for its reinvestment policy (please see below for more detail analysis on this matter).

    GROWTH/TRADE: In terms of adjustments, this aspect of the statement could be of greater focus for the market given the September minutes state concerns that “factors behind the growth slowdown may not be transitory, trade tensions could lead to a more general decline in confidence”. As such, some in the market have speculated whether or not this could force the Bank to review their ‘broadly balanced’ assessment. However, GS suggest that since these remarks ‘various Governing Council members have suggested that the broad view is still that the risk assessment of the economic outlook is balanced’; subsequently GS look for little in the way of material changes to the introductory statement.

    INFLATION: Despite the market focus on Draghi’s comments in September whereby he spoke of a “relatively vigorous pick-up in underlying inflation”, UBS suggest the ‘remarks do not signal a change in the ECB’s assessment, but are more of a description of what the ECB has expected for some time”. Furthermore, UBS “think that recent speeches by Mr Draghi and other key ECB policymakers constitute explanations as to why the ECB introduced its monetary policy normalisation in June 2018 – rather than first indications that the ECB is about to further accelerate the pace of normalisation”. Therefore, it is unlikely that the ECB will materially alter their guidance on inflation at this stage.

    PRESS CONFERENCE: WHAT TO WATCH OUT FOR

    In terms of the contents of the press conference, a bulk of the ECB’s assessment on the Eurozone economy will be incorporated into the introductory statement with no staff economic projections this time around. Draghi will likely be quizzed on his assessment of the Eurozone economy in the Q&A but the tone presented by Draghi will likely be in-fitting with the introductory statement with the central banker likely to be mindful of not wanting to rock the boat as the ECB’s PSPP draws to a close. Interestingly, Rabobank questions whether Draghi’s optimism at the previous conference was driven by the economic outlook or the desire to curtail asset purchases. As part of the discussion regarding the Eurozone’s economic outlook, Draghi will likely be presented with specific questions on the Bank’s view on ongoing trade tensions, particularly given source reports ahead of the previous meeting which flagged concerns from the fallout of trade disputes. Since then, there has still been no material improvement on this front with the US recently accusing the EU of ‘dragging its heels’ in talks. That said, it is unlikely that the Governing Council will have enough information at this stage to provide a more coherent update and will most likely wish to see how talks between the EU and US play out.

    Another line of questioning from journalists will likely centre around the Bank’s approach to its reinvestmnet policy. At the previous meeting, Draghi stated that reinvestments had not been discussed but would be a topic for discussion at one of the meetings before the end of 2018. As such, this leaves the ECB with either this week’s meeting as an opportunity to update markets or the final 2018 meeting in December before the PSPP concludes. For context, various reports over the past few weeks have hinted at a potential Fed-type ‘operation twist’ which would involve reinvestments being focused on longer maturities with the objective of maintaining control over the long-end of the curve. However, HSBC are “of the view that any formal announcement in that direction is unlikely: the ECB has been vague on the maturity of purchases and reinvestments, which allows it to be flexible in what to buy”. Furthermore, HSBC also highlight the issue of Bond scarcity for the Bank which could pose issues in buying bonds at the long-end, particularly Bunds. Barclays back this view by stating that any updates will likely be from more of a technical standpoint rather than anything that would imply changes to the ECB’s monetary policy course. In terms of actual timing for the announcement, as mentioned above, the next update from the Bank will come either this week or in December; GS and Rabobank suggest that the latter is more likely.

    Given the current political climate in Italy, journalists will likely probe Draghi over events in his home nation and what the ECB could do to prevent economic spill-overs from a deterioration in the Italian economic outlook. To recap recent events, Italy has put itself on a collision course with the European Commission with regards to its budgetary plans which has prompted the Commission to write to Italy, highlighting their concerns. At the time of writing, it appears to be unclear how much (if any) ground Italy will concede with various media reports painting a mixed picture of the situation. The main concern for the Bank is that whatever compromises are struck between Italy and the EC, Italy appear to be adopting a particularly laissez faire approach to their structural deficit. In September, the ECB stated “full adherence with the Stability and Growth Pact is critical for safeguarding sound fiscal position”. As such, markets will be looking to state whether the ECB ups the intensity of their message to Italy with HSBC highlighting that the Bank could “play a crucial role in the future negotiations between Italy and the EU, with QE reinvestments being key to support the Italian sovereign bond market”. GS state that they believe “Draghi may provide some broad comments highlighting the importance of fiscal prudence” but “do not expect him to signal that any special measures targeting Italy are forthcoming”

     

  • The Future Of Privacy In The New World Order

    Via InternationalMan.com,

    Roughly one hundred years ago, the people who “ran things,” – the drivers behind governments, big business and banking – formulated a concept which became known by a number of names, but, predominantly, as the “New World Order.”

    The concept was to put an end to unnecessary competition and warfare and have a central, unelected group of people run the entire world. It was not considered necessary to completely eliminate individual countries; the idea was to control them all centrally. It also didn’t necessarily mean that wars would end. Warfare can be quite useful for rulers, as they provide an excellent distraction from resentment toward the leaders who impose control over a people.

    Ever since that time, this same rough group of people has continued generationally. Sometimes, but not always, the family names change. Useful people are added on and less useful ones removed. But the concept itself has continued, evolved and, in fact, gained strength.

    But, as yet, the process remains incomplete. Several facets to a New World Order are not yet in place. It’s proven difficult to “fool all of the people all of the time,” so the effort to subjugate an entire world has taken more time than originally anticipated.

    An essential component of this control is the elimination of the personal holding of wealth. Whilst the leaders intend to expand their own wealth in an unlimited fashion, they seek to suppress the ability of the average person to increase his own wealth. Wealth leads to independence and independence from a New World Order is unacceptable. Wealth gives people options. They must be taught to accept being herded like cattle and being compliant, or they will become troublesome.

    Not surprising then, that, recently, organisations like the OECD have been created to eliminate the individual’s ability to create and maintain wealth for his own benefit.

    The OECD’s dual purpose, from its inception, has been to achieve two things: 1) to eliminate tax shelters, so that people could not escape oppressive taxation in their home jurisdictions and, 2) to create uniform taxation worldwide. (Whilst they proudly boast that they are pursuing the former objective, under the pretense of preventing “money laundering and terrorism,” they have not yet revealed the latter objective, as it cannot be so easily disguised as a benefit to those being ruled over.)

    But the OECD has, over time, done a bang-up job of convincing most people that “privacy” – the right to keep your personal affairs to yourself – is the same as “secrecy” – the desire to hide your misdeeds from others.

    The majority of people have now accepted the absurd notion that they should have no right to personal privacy. They owe it to the powers that be, to allow them to freely rummage through their financial lingerie drawer.

    Every year, the OECD and others have successfully chipped away at the privacy offered by Switzerland and similar jurisdictions. Through repeated black lists, gray lists, sanctions and outright threats, the OECD has diminished privacy considerably there.

    A significant blow has recently been announced by the Federal Tax Administration (FTA) that has brought an end to numbered Swiss accounts and allows for the automatic transfer of information between jurisdictions.

    Henceforth, the account holder’s name, address, country of residence and tax identification number as well as the reporting institution, account balance and capital income are to be made available to other jurisdictions so that they can monitor the wealth of their citizens.

    Tellingly, this new “openness” does not necessarily include reciprocal reporting. Many other nations will not be expected to send theiraccount information to the Swiss. This has been described by the FTA as being due to “technical reasons.”

    Periodically, people located in OECD countries (the western world’s primary powers that drive the New World Order effort) have declared that “privacy is dead.” At least once a year, some new level of control has been achieved somewhere in the world and, each time, the proclamation is repeated, as though for the first time.

    So – is this the case? Is the new Swiss event the one that, will really, truly, no kidding this time, bring wealth privacy to an end?

    Hardly.

    Singapore and Hong Kong are in fact making forward strides as to privacy. And other freedom-supporting jurisdictions (almost all of them geographically small jurisdictions) are in the continual habit of losing a bit of ground / gaining a bit of ground. However, within the OECD countries, the process has the appearance of a turnstyle that only goes one way – away from freedom and toward a New World Order.

    The people living in OECD countries are inclined to say, “Okay, I understand that those jurisdictions that favour financial privacy are putting up a valiant fight, but surely, the big boys will one day crush them. It may not be all over yet, but it’s just around the corner.”

    In my estimation, this is far from being a done deal. What we are instead witnessing is a race against time. The OECD countries are undeniably bankrupt. But, through the excessive creation of counterfeit money, they’re presently maintaining and even expanding their power over the rest of the world.

    As long as they can maintain the illusion that they’re solvent, yes – they will succeed in chipping away the right to privacy. But it’s become a far more formidable task than the OECD at first thought. Other countries have been habitually creative in finding loopholes and creating alternative methods to maintain privacy. They most certainly never announce these developments and they’ll unquestionably not be acknowledged by the elite-controlled media, but in fact, they’ve been holding their own quite well. The question is: for how long?

    Historically, governments have always sought to control their minions as much as they possibly can. Empires are even more fervent in this effort. But all empires eventually collapse from within – self destructing through top-heaviness. In their final days, they redouble their efforts at control, as they become aware that their days are numbered and they try to take a last squeeze at the lemon, with regard to their citizens’ wealth.

    The OECD countries are a textbook example. They’re in their final throes and are going all out to control and appropriate the wealth of their citizens. But, again, they’re bankrupt and living on borrowed time. When the inevitable economic collapse does arrive in the not-distant future, something highly significant will happen that very few people are presently taking into account.

    Historically, in all such situations, when a collapse happens, all the counterfeit money dries up quite suddenly and the empire can no longer continue to fund even its basic subsistence programmes, let alone costly peripheral programmes such as the OECD.

    That’s when the controls fall by the wayside.

    What we’re witnessing is a waiting game. Jurisdictions that support wealth privacy have always existed and always will, but they’re presently operating much like the French Resistance in 1944. They need only keep the game moving until the day of liberation.

    After that date, they’ll once again begin their inevitable expansion.

    *  *  *

    Clearly, there are many strange things afoot in the world. Distortions of markets, distortions of culture. It’s wise to wonder what’s going to happen, and to take advantage of growth while also being prepared for crisis. How will you protect yourself in the next crisis? See our PDF guide that will show you exactly how. Click here to download it now.

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