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Muslims And The Left’s Death By Tolerance

January 17, 2015 by · Leave a Comment 

Aside from the three Muslim men who perpetrated the deadliest terror attack in France since 1961, there are some other individuals complicit in the Wednesday massacre. They have names such as Hollande, Merkel, Löfven and Obama. Their connection to the act will largely go unnoticed and unapprehended — and they likely will never be held to account.

In the wake of the brutality at the offices of satirical magazine Charlie Hebdo, socialist French president Francois Hollande called for tolerance.

I call for intolerance.

The difference between us isn’t that, relatively speaking, I lack the quality. I have a lot of practice exercising tolerance because I have far more to tolerate — not the least of which is the political power and policies of people such as Hollande, Merkel, Löfven and Obama. The real difference is that I actually know what tolerance means.

Tolerance always implies a perceived negative. You wouldn’t have to tolerate a delectable meal or a beautiful car; you relish those things. But you would have to tolerate a stubborn cold, a painful rash or foul weather. So Tolerance Lesson One for Leftists:

If you say you’re tolerant of Muslims, it implies that you consider them a negative.

If you don’t — if instead you like them or just view them neutrally — tolerance doesn’t enter the equation.

Of course, not everything we perceive as negative actually is so. We may dislike broccoli, but tolerate it in order to avoid offending a host or for health reasons. In such cases, when the perceived negative is not objectively negative and there are good reasons to put up with it, tolerance can be a great exercise of virtue.

It also can be virtuous when dealing with an objective negative (ON), such as unjust imprisonment or a terminal illness, that you cannot remedy. Soldiering on nobly in such situations often builds great character and provides inspiration for others.

But what of when at issue is an ON that can be remedied? This brings us to Tolerance Lesson Two for Leftists:

The only virtue in this case lies in wiping the negative out.

Unlike when bearing up nobly in the face intractable ONs, tolerating those that could be eliminated renders one guilty of a failure of omission; it is dereliction of moral duty. An example would be a man who could prevent someone from habitually invading his home and endangering his family, but who fails to do so out of neglect, cowardice or in deference to twisted ideology. (This could, by the way, be viewed as a microcosm of something that perhaps, just maybe, we might want to start having an honest national discussion about.) Another example was when the Spaniards encountered the bloody-altar Aztecs in 16th-century Mexico; they didn’t say “Hey, tearing the hearts out of thousands of innocents while they’re still alive and hanging their body parts in the marketplace isn’t our thing, but we’re good multiculturalists and don’t impose values.” They were intolerant — and, thankfully, an intolerable Hades-born “religion” was vanquished.

Also note that since being neglectful, a coward or a twisted ideologue is an ON itself, it generally doesn’t engender respect. Remember that allowing the continued existence of remediable ONs sometimes amounts to a person letting himself be used as a doormat. And people wipe their feet on doormats. Of course, other times an individual won’t perceive the ON as a negative; noteworthy here is that ingested poison will kill you whether you recognize it as poison or not.

Many interesting lessons on tolerance could be learned from the Muslim world. Note that when pious Muslims perceive something as negative (this isn’t to imply that all their perceptions are accurate), they often stop at nothing to wipe it out. Just consider the tens of thousands of non-Muslims killed and thousands of churches burned by jihadists during the last decade, the enforcement of Sharia law, and the Muslim-conquered parts of European cities euphemistically known as no-go zones.

The leftist response to this Islamic chauvinism is well exemplified by the reaction to the 2014 “Trojan horse scandal,” involving the supplanting of Western curricula by Islamist doctrine in seven London schools. Critiquing one offending institution, British officials noted that pupils didn’t “learn about different faiths and cultures” and, critiquing another — and this is the money line — said that students “understanding of…mutual respect and tolerance…is underdeveloped.” “Ah, yes, these Muslims just need to be tolerant like us,” say the good leftists.

Talk about being dimmer than a 15-watt bulb in a North Korean night.

Since these Muslims view other faiths and cultures as inferior to their own, as negatives, they would have to be tolerant of them — if they didn’t think they could vanquish them. But because they’re making great headway on that front, they have no need to be tolerant. You needn’t tolerate what you can terminate.

And they’re really just taking a leaf out of the left’s book. How tolerant are liberals, really? Remember again, the only test of tolerance is how well you abide things you dislike. And no one is more vicious in destroying perceived negatives than leftists. Just ask the people who’ve lost jobs for defending marriage or criticizing homosexual behavior, such as former Mozilla CEO Brendan Eich or ex-Atlanta fire chiefKelvin Cochran. Ask those punished under hate-speech laws or bitten by speech codes on college campuses. Ask the bakers and other Christian businessmen put out of business for refusing to be party to homosexual “weddings.” The reality is that when leftists hate something — and it is all emotion with them — they have no mercy. (Mind you, this is one reason liberals accuse conservatives of being “haters”; it’s projection. Governed by emotion, they only oppose what they despise, so they naturally view opposition as synonymous with hatred.)

So leftists’ calls for tolerance amount to a request that Muslims and others practice what leftists themselves merely preach. But if you consider their working definition of the word — confusing tolerance with affinity or indifference — there is an irony here: these secular fundamentalists have the same message the Islamic fundamentalists do:

Believe what we believe.

Like what we like.

Hate what we hate.

Become one with our collective.

And we can live in peace.

Secular and Islamic fundamentalists have something else in common. Both groups have many perceived negatives that aren’t actually objectively negative, so they try to wipe out the wrong things. Thus do they work together to destroy Christianity and Western civilization. And this is why I named as co-conspirators in the Paris attack Francois Hollande, Angela Merkel, Stefan Löfven and Barack Obama. But this brings me to my last Tolerance Lesson for Leftists, and I direct my words now specifically to leftists: There’s something else pious Muslims perceive as a negative, and it also happens to be something that is an objective negative.

You.


Selwyn Duke is a writer, columnist and public speaker whose work has been published widely online and in print, on both the local and national levels. He has been featured on the Rush Limbaugh Show and has been a regular guest on the award-winning Michael Savage Show. His work has appeared in Pat Buchanan’s magazine The American Conservative and he writes regularly for The New American and Christian Music Perspective.

He can be reached at: SelwynDuke@optonline.net

Selwyn Duke is a regular columnist for Veracity Voice

Who Benefits From Being Charlie: “I Am NOT Bibi Netanyahu!”

January 17, 2015 by · Leave a Comment 

Clearly this subject has already been covered in the media news cycle ad nauseam but I still can’t stop thinking about the “I am Charlie” concept.  Was the idea behind all those people who held up “I am Charlie” posters supposed to be about protecting free speech?  Really?  Then why isn’t everyone carrying “I am Julian Assange, Chelsea Manning and Edward Snowden” posters too?   Or demanding that the police stop arresting guys who falsely yell “Fire!” in a crowded theater or deliberately start barroom brawls?

Or if those “I am Charlie” posters are in protest of armed thugs in Paris gunning down civilians in cold blood, then why isn’t everyone in Paris also carrying posters proclaiming “I am Iraq” or “I am Syria” or “I am Palestine” or “I am Ukraine” or Libya or Mali or….  You get the picture.

All those people holding up signs protesting the slaughter on Rue Nicolas-Appert might actually think that they too are “Charlie” — and that’s fine.  Terrible things happened to the employees of Charlie Hebdo.  No one should ever have to suffer the fate of being shot down in cold blood, and thus the victims deserve to be mourned.  However I myself chose NOT to be Charlie Hebdo, a vicious slimy obscene rag clearly designed to stir up religious tensions in France.

And I also choose not to be any other bigots or terrorist troublemakers who clearly delight in trying to stir up religious tensions in France, crassly using others’ religious differences to pave their own way to riches and power — and yet who have the ultimate and offensive hypocrisy and nerve to show up for the French “I am Charlie” marches with innocent smiles on their faces.  “Who us?” they innocently proclaim — after doing everything they possibly can to stir up bigotry against Muslims.

I am NOT Avigdor Liberman

I am NOT Naftali Bennet

And I am definitely NOT Bibi Netanyahu.

These three guys and their cohorts seem to be always at the center of any religious tension or terrorist attack almost anywhere in the world — starting in 1948 when the Stern Gang blew up the King David Hotel and Moshe Dayan’s “army” slaughtered Christian and Muslim Palestinians left and right in order to steal their land.  “Every time anyone says that Israel is our only friend in the Middle East, I can’t help but think that before Israel, we had no enemies in the Middle East,” a Jesuit priest stated back then.  And that’s still true today.

Israel’s sleazy military-industrial complex then went on to be an uber-cheerleader for America when our own sleazy military-industrial complex bombed Kuwait, Afghanistan, Iraq, Libya, Syria, Yugoslavia, Yemen, Pakistan, Somalia and I forget what all else.  And Israeli neo-cons themselves have bombed Palestine, Egypt, Iran, Iraq, Lebanon and I forget what all else too — not to mention their documented ongoing support for ISIS and Al Qaeda.

If bombs, missiles, white phosphorus, tanks, false-flag operations, F-16s, tear gas or even bottle-rockets are involved, Bibi and these guys are so there!

Millions dead in the Middle East?  I call that terrorism.  And yet Bibi and his minions actually had the chutzpah to march in Paris “against terrorism,” according to Paris Match.  Yeah, right.

Yet who benefited from the Charlie Hebdo incident?  Let’s see.  According to Paul Craig Roberts, it’s the American military-industrial complex that benefited.  “Not France, not Muslims, but US world hegemony.  US hegemony over the world is what the CIA supports.  US world hegemony is the neoconservative-imposed foreign policy of the US.”

But as they say in poker, “I’ll see Roberts and raise him.”  Netanyahu benefited.  Apparently, right before the Charlie Dodo incident was staged, France had just announced that it might be backing off supporting sanctions on Russia.  What?  No immediate prospect of World War III?  No big Israeli weapons sales?  Bibi must have been tres disappointed!

France had also just announced that it was gonna recognize the Palestinian state.   OMG!  That must have totally pissed Netanyahu off.

Also, our Bibi is having trouble finding settlers to occupy his many illegal condos in Palestine’s West Bank.  But he just loves French Jews — and hopes to scare them enough to force them to flee to Israel and live rent-free on Palestinian land.  Heck, I like Israel well enough.  Wouldn’t mind living there myself.  It’s a nice place.  Heck, even the Palestinians used to like living there too.  But it’s the Israeli neo-cons’ blood-thirsty hypocritical scheming military-industrial-complex-flaunting neo-con national-socialist leaders that I do not respect or cannot like.

And I’m not being anti-Semitic here.  Let’s leave all that religious bigotry to Charlie Hebdo.  I am only being a student of American-Israeli neo-con “Realpolitik” (Rāˈälpōliˌtēk/:  A system of politics or principles based on practical rather than moral or ideological considerations).  And Realpolitik has nothing to do with religion.

Good grief, I’m so glad that I’m NOT Netanyahu.

And I also feel nothing but compassion for all the billions of Muslims, Christians and Jews who are being subjected to his vile manipulations.  I also feel nothing but compassion for the hostages in the kosher supermarket who were also victims of Bibi’s lust for money and power and to create chaos throughout the world.  Even if it means putting all the world’s Jews in danger again.

PS:  What is going to happen next in France?  Or in Israel and the United States too, for that matter.  As my friend RJ suggests, let’s follow Norway’s heroic example after the dreadful 2011 massacre there and stop spending our patrimony on guns, bombs, war and alienation and start spending that money on integrating our nations’ diversity into our national bank of excellent human resources instead.

We’ve already wasted a hundred trillion dollars on “war” so far, only to discover again and again that violence doesn’t ever work.  Not in the Middle East, not in Ukraine, not in Paris, not at the World Trade Center and not in Ferguson either.  Just imagine if we had spent all that money on education, jobs, and integrating our society into a smooth-running democratic machine instead.

To paraphrase Thomas Piketty, “You can’t have a political democracy unless you have an economic democracy too.”  And “war” has ruined — absolutely ruined — the economic democracy of both Israel and the USA.  And probably France too.


Jane Stillwater is a regular columnist for Veracity Voice
She can be reached at: jpstillwater@yahoo.com

Amidst A Religious War In Europe Or Is It Just Another False Flag Operation?

January 10, 2015 by · Leave a Comment 

The massacre in France was a devastating crime against freedom and the right to laugh.

But was it really executed by a bunch of lunatic irrational Muslims who to decided to kill mercilessly because their prophet was mocked?

French people should be asking what led members of their society to commit such cold blood murders against their fellow citizens.

France should ask itself why it has been dropping bombs on Muslims. Who enthusiastically advocated these ‘interventionist’ wars? What was the role of Bernard-Henri Lévy, the prime advocate of the war against Libya for instance?

What was all this French fuss about the burka? Who led this war on Muslims at the heart of Europe? Was it really in the name of tolerance?

Freedom and laughter are precious indeed, but isn’t it the French ‘socialist’ government that has been harassing and banning the best and most successful comedian in France, Dieudonné M’bala M’bala, because he satirized the Holocaust religion? Who pushed the French government to take such harsh actions against an artist; wasn’t it the Jewish lobby group CRIF?

If Europe wants to live in peace, it might consider letting other nations live in peace. By following the whims of The Lobby we have destined Paris to the fate of Aleppo, God forbidden.

But there is an alternative narrative that turns our perception of this disastrous Paris massacre on its head.

This morning 18-year-old Hamyd Mourad, suspected to be one of the three terrorists involved in yesterday’s attack, handed himself in to the police in Charleville-Mezieres. He reportedly surrendered peacefully after hearing his name on the news. And he claims that he had nothing to do with yesterday’s event. Bizarre isn’t it? Not really.

While every anti terror expert has agreed that the attack on Charlie Hebdo yesterday was a professional job, it seems pretty amateurish for a ‘highly trained terrorist’ to leave his ID behind. And since when does a terrorist take his ID on an operation?  One possible explanation is that the so-called terrorists needed a few extra hours to leave France or disappear. They had to fool the French police and intelligence into searching the wrong places and the wrong people. Is it possible that they simply planted a stolen or forged ID card in the car they left behind?

If this was the scenario, it is possible that the attack yesterday had nothing to do with ‘Jihadi terrorism.’ It is quite probable that this was another false flag operation. Who could be behind it?  Use your imagination…


Gilad Atzmon was born in Israel in 1963 and had his musical training at the Rubin Academy of Music, Jerusalem (Composition and Jazz). As a multi-instrumentalist he plays Soprano, Alto, Tenor and Baritone Saxes, Clarinet and Flutes. His album Exile was the BBC jazz album of the year in 2003. He has been described by John Lewis on the Guardian as the “hardest-gigging man in British jazz”. His albums, of which he has recorded nine to date, often explore political themes and the music of the Middle East.

Until 1994 he was a producer-arranger for various Israeli Dance & Rock Projects, performing in Europe and the USA playing ethnic music as well as R&R and Jazz.

Coming to the UK in 1994, Atzmon recovered an interest in playing the music of the Middle East, North Africa and Eastern Europe that had been in the back of his mind for years. In 2000 he founded the Orient House Ensemble in London and started re-defining his own roots in the light of his emerging political awareness. Since then the Orient House Ensemble has toured all over the world. The Ensemble includes Eddie Hick on Drums, Yaron Stavi on Bass and Frank Harrison on piano & electronics.

Also, being a prolific writer, Atzmon’s essays are widely published. His novels ‘Guide to the perplexed’ and ‘My One And Only Love’ have been translated into 24 languages.

Gilad Atzmon is a regular columnist for Veracity Voice

Visit his web site at http://www.gilad.co.uk

2015: A Global Assessment

January 6, 2015 by · Leave a Comment 

It is futile to make any but short-term predictions on world affairs: there are just too many variables in the equation, too many unknown-unknowns. The escalation of the Ukrainian crisis and the rise in U.S.-Russian tensions could have been forecast a year ago, in general terms at least, but the explosive rise of ISIS could not.

It is nevertheless possible and often useful to outline the contours of probable developments on the basis of existing structural vectors and recent dynamics. “Time is not heterogeneous,” Raymond Aron correctly noted half a century ago, when writing on Max Weber’s approach to historical causality. If time is homogenous, then – in theory at least – “the possibility of causal explanation is the same for the past and for the future.” In practice, we can expect two key developments to make an impact on the global scene in 2015:

  1. The government in Kiev and its handlers in Washington will not settle for a long-term frozen conflict in the east of the country. Armed, trained and equipped by NATO, Ukrainian forces are likely to launch a major military assault against Donetsk and Lugansk in late spring – I’d put the odds at 3:1. If the attack is successful, the regime would use it to compensate for the adverse effects at home of the ongoing economic and financial collapse, while the U.S. would show the world that Putin is not invincible. If Russia intervenes openly to prevent the two self-proclaimed republics’ collapse, Putin would finally enter the trap which he has been avoiding ever since the massacre in Odessa eight months ago. If the Novorossiyan forces defeat the attackers, thus repeating the feat of last August – obviously the least desirable scenario from Washington’s and Kiev’s point of view – there is still the fallback option of another Minsk-like ceasefire agreement, which leaves the military option open for 2016.
  2. Russia’s pivot to Asia will gather momentum, reflecting Moscow’s strategic decision to abandon the elusive quest for a neo-Gaullist long-term partnership with the EU. That decision was made symbolically public in Ankara last November with the abandonment of the South Stream pipeline project. China and Russia are long-term economic, political and – increasingly – military partners now. Putin’s recent visits to Modi in India and Erdogan in Turkey indicate his ongoing efforts to build a massive Eurasian bloc and his growing indifference to the Brussels connection. This means the end of the “Europe from the English Channel to Vladivostok” idea, but my notion of a Northern Alliance never had a chance with the Duopoly so firmly in charge. The implications are serious for the Beltway global hegemonists, primarily because progressive de-dollarization of financial transactions among those countries has the potential to bring the Empire down without a shot being fired. That is a long-term, rather than immediate danger, however.

Those two issues matter the most in geopolitical terms. On other fronts, in the Greater Middle East the Islamic State will not be defeated, Bashar will continue to hold on, Egypt will remain stable and peaceful under Sisi, and there will be no progress in Israel-Palestine; everything else is up in the air. The Eurozone will struggle on, just, but recent oil price collapse means deflation and continued sluggish growth in 2015. We can expect oil prices to bounce back somewhat, settling at or near $70 per barrel for a long while. Russia is and will continue to be badly hit, but this may prompt her long-overdue economic diversification. The most vulnerable exporter is Venezuela, where social and political unrest against the Maduro government – aided and abetted by the NED et al – is a distinct possibility. (Nigeria is in the same boat, but sub-Saharan Africa is irrelevant to the rest of the world.)

The only thing I am willing to predict with some certainty is that 2015 will be worse than 2014 and better than 2016.


Srdja (Serge) Trifkovic, author, historian, foreign affairs analyst, and foreign affairs editor of “Chronicles.” He has a BA (Hon) in international relations from the University of Sussex (UK), a BA in political science from the University of Zagreb (Croatia), and a PhD in history from the University of Southampton (UK).

www.trifkovic.mysite.com

Dr. Srdja Trifkovic is a regular columnist for Veracity Voice

The Future “Former” USA: Just Another Former Soviet Union?

January 1, 2015 by · Leave a Comment 

I just finished reading an article by a guy who had accurately predicted the fall of the former USSR two whole years before it actually happened.  However, nobody back then even believed him.  “The USSR has over-extended itself and is going to collapse!” he kept telling people.  But everyone who heard him just laughed.

Well.  At this point in time, the USA has totally over-extended itself too.  Like some addicted shopaholic set loose with questionable plastic at a shopping mall, the USA has over-charged every single one of its credit cards by at least eleven trillion dollars in order to buy its very favorite consumer product — endless war.  And, in addition, the USA has also spent another ungodly number of trillions on making its uber-rich 1% even richer, and keeping its corrupt bankers happy as clams.

And so, like the former USSR back in 1991, now the USA also has nowhere to go but down either — due to its total over-extension.  And you don’t even have to be a genius to do the math here.  Anyone with a calculator app. on their iPhone can figure this one out.  A couple hundred trillion $$$$ subtracted from zero equals what?  Total collapse.  This is pretty much a given at the rate that our “fearless leaders” on Wall Street and War Street are currently spreading their phony credit-card moolah around.

But what I really want to talk about here is what will actually happen to America (and to you and me) when our country suddenly does become referred to as “The Former USA”.   To know that, all we have to do is look at a model already set before us — what had happened to the Former USSR after it had over-extended itself.

First, you gotta remember that ten percent of all citizens of the Soviet Union actually DIED after the USSR collapsed.  Ten percent!  One in ten.  The old people went first.  And the working poor.  And the kids.  That would be like having about 30 million Americans dead as a doornail because Wall Street and War Street didn’t behave themselves.

Second, a huge number of Soviet public buildings throughout Europe and Asia suddenly became “privatized” and were happily handed over to the lowest bidders — the oligarchs.  But then that is happening here in the USA already.  Let’s take my own downtown Berkeley post office for instance.  It’s being practically given away to oligarchs even as we speak.  And American schools, national parks, mineral-rich lands, public buildings and all kinds of other property that used to be held in the common interest is now not being held in the common interest any more.  And when the USA becomes “Former,” this process will be speeded up even faster.  Say goodbye to Yellowstone, the Statue of Liberty and your local city hall.

Third, after the former Soviet Union fell, people’s teeth began to rot for lack of dental care there.  Suddenly there were no affordable doctors and dentists in Russia, a trend that has also gotten a big head-start here in the soon-to-be Former USA already.  If you don’t take care of your citizens, this is what you get.  Sick people and rotten teeth.

Fourth?  Unemployment in Russia.  Of course we already have a head-start on that one as well.  But it will be getting worse.  Much worse.

Fifth, the USSR’s status as a world super-power suddenly collapsed as its wounded warriors painfully wound their way back home from places like Afghanistan.  The same will happen in the former USA too.

Sixth:  Before its collapse, the USSR used to be a “communist” state — in the sense that only a few people at the very top made all the decisions.  And now, thanks to Citizens United, the USA has already gotten that way too.  We are no longer a democracy either.  So in that respect too we have already started to become like the Soviets right before their big fall.  And it will get even worse here after the fall of the USA as well.  Our current “deep state” shadow governments will be coming out of the shadows and cesspools for sure.  Can you say “President-for-Life Cheney,” boys and girls?

But actually, back during the 1950s, it was America that had been the true communist state — after WW II had reshuffled the cards, dealt new hands to working folks, given our middle class a leg up and redistributed our wealth more equally by taking it from the uber-rich and giving it to the middle class.  But Reagan’s tricky re-stacking of the deck in favor of Wall Street, and Bush’s ace-up-his-sleeve gifts to War Street and sleight-of-hand tax redistribution act of 2003 soon changed all that — and our wealth was then redistributed upwards to the uber-rich once again, ending “communism” in America forever.  No, they don’t call it “capitalism” without reason.  The uber-rich now own all the “capital”.  We don’t.

In order to return to America’s former “communistic” economic glory of the 1950s, three things need to happen.  We need to go back to giving America’s middle and working classes their former leg-up tax breaks — instead of only giving a huge tax leg-up to our 1% “Soviet Commissars” only.  And we need to stop stacking the deck in favor of Wall Street’s insane profit margins.  And we need to shut down War Street completely.  Otherwise, after the USA falls too, we also are gonna have oligarchs coming out our ears — even more than they are now.

Seventh, the USSR ruble collapsed back then — just like the dollar is now collapsing already.  It’s gonna be rather tough around here when the US dollar also becomes worth diddly-squat.

Eighth, consider that wise Biblical saying, “Do unto others as you would have others do unto you”.  And then become very afraid.  From Hiroshima, Korea, Vietnam, Cambodia, Africa and Latin America to the former Yugoslavia, Afghanistan, Iraq, Libya, Lebanon, Syria, Gaza, Ukraine, etc., the first thing that the USA and/or its surrogates do when they attack a country is to bomb its civilian population, take out the water supply, power plants and hospitals, and/or install a ruthless dictator.  Let us just hope that the former USA will not fall into a position to be vulnerable to retaliation, that our former victims will show mercy and that “Do unto others…” will not apply to us like it did to the USSR.

And, ninth, the huge Soviet Union began to break up into smaller states and groups as it fell.  That will definitely happen here too.  Can’t exactly say that I will miss any of the Red States when they leave — but they will sorely miss not being part of the new American Blue States, their current life-line to prosperity.  I can tell you that right now.

All the signs of the eminent collapse of the USA are already here right now, just like they were for the USSR back before 1991.  Go ahead and laugh if you will, but hard times really are coming here too.  The Former USA is practically upon us.  We have already over-extended ourselves too deeply to rationally expect any other result.  Sigh.

Let us just hope that America somehow manages to find another chess master like Putin to lead us After the Fall, and doesn’t get stuck with another drunk like Yeltsin!


Jane Stillwater is a regular columnist for Veracity Voice
She can be reached at: jpstillwater@yahoo.com

Ruble Takedown Exposes Cracks In Putin’s Defense

December 20, 2014 by · Leave a Comment 

Putin’s Next Move Is Crucial…

The plunge of the Russian currency this week is the drastic outcome of policies implemented by the major imperialist powers to force Russia to submit to American and European imperialism’s neo-colonial restructuring of Eurasia. Punishing the Putin regime’s interference with their plans for regime change in countries such as Ukraine and Syria, the NATO powers are financially strangling Russia.” Alex Lantier, Imperialism and the ruble crisis, WSWS

“The struggle for world domination has assumed titanic proportions. The phases of this struggle are played out upon the bones of the weak and backward nations.” Leon Trotsky, 1929

Russian President Vladimir Putin suffered a stunning defeat on Tuesday when a US-backed plan to push down oil prices sent the ruble into freefall. Russia’s currency plunged 10 percent on Monday followed by an 11 percent drop on Tuesday reducing the ruble’s value by more than half in less than a year. The jarring slide was assisted by western sympathizers at Russia’s Central Bank who, earlier in the day, boosted interest rates from 10.5 percent to 17 percent to slow the decline. But the higher rates only intensified the outflow of capital which put the ruble into a tailspin forcing international banks to remove pricing and liquidity from the currency leading to the suspension of trade. According to Russia Today:

“Russian Federation Council Chair Valentina Matviyenko has ordered a vote on a parliamentary investigation into the recent activities of the Central Bank and its alleged role in the worst-ever plunge of the ruble rate…

“I suggest to start a parliamentary investigation into activities of the Central Bank that has allowed violations of the citizens’ Constitutional rights, including the right for property,” the RIA Novosti quoted Tarlo as saying on Wednesday.

The senator added that according to the law, protecting financial stability in the country is the main task of the Central Bank and its senior management. However, the bank’s actions, in particular the recent raising of the key interest rate to 17 percent, have so far yielded the opposite results.” (Upper House plans probe into Central Bank role in ruble crash, RT)

The prospect that there may be collaborators and fifth columnists at Russia’s Central Bank should surprise no one. The RCB is an independent organization that serves the interests of global capital and regional oligarchs the same as central banks everywhere. This is a group that believes that humanity’s greatest achievement is the free flow of privately-owned capital to markets around the world where it can extract maximum value off the sweat of working people. Why would Russia be any different in that regard?

It isn’t. The actions of the Central Bank have cost the Russian people dearly, and yet, even now the main concern of RCB elites is their own survival and the preservation of the banking system. An article that appeared at Zero Hedge on Wednesday illustrates this point. After ruble trading was suspended, the RCB released a document with “7 new measures” all of which were aimed at protecting the banking system via moratoria on securities losses, breaks on interest rates, additional liquidity provisioning, easier credit and accounting standards, and this gem at the end:

“In order to maintain the stability of the banking sector in the face of increased interest rate and credit risks of a slowdown of the Russian economy the Bank of Russia and the Government of the Russian Federation prepare measures to recapitalize credit institutions in 2015.” (Russian Central Bank Releases 7 Measures It Will Take To Stabilize The Financial Sector, Zero Hedge)

Sound familiar? It should. You see, the Russian Central Bank works a lot like the Fed. At the first sign of trouble they build a nice, big rowboat for themselves and their dodgy bank buddies and leave everyone else to drown. That’s what these bullet points are all about. Save the banks, and to hell the people who suffer from their exploitative policies.

Here’s more from RT:

“Earlier this week a group of State Duma MPs from the Communist Party sent an official address to Putin asking him to sack (Central Bank head, Elvira) Nabiullina, and all senior managers of the Central Bank as their current policies are causing the rapid devaluation of ruble and impoverishment of the majority of the Russian population.

In their letter, the Communists also recalled Putin’s address to the Federal Assembly in which he said that control over inflation must not be in the way of the steady economic growth.

“They listen to your orders and then do the opposite,” the lawmakers complained.” (RT)

In other words, the RCB enforces its own “austerity” policy in Russia just as central bankers do everywhere. There’s nothing conspiratorial about this. CBs are owned and controlled by the big money guys which is why their policies invariably serve the interests of the rich. They might not call it “trickle down” or “structural adjustment” (as they do in the US), but it amounts to the same thing, the inexorable shifting of wealth from working class people to the parasitic plutocrats who control the system and its political agents. Same old, same old.

Even so, the media has pinned the blame for Tuesday’s ruble fiasco on Putin who, of course, has nothing to do with monetary policy. That said, the ruble rout helps to draw attention to the fact that Moscow is clearly losing its war with the US and needs to radically adjust its approach if it hopes to succeed. First of all, Putin might be a great chess player, but he’s got a lot to learn about finance. He also needs a crash-course in asymmetrical warfare if he wants to defend the country from more of Washington’s stealth attacks.

In the last 10 months, the United States has executed a near-perfect takedown of the Russian economy. Following a sloppy State Department-backed coup in Kiev, Washington has consolidated its power in the Capital, removed dissident elements in the government, deployed the CIA to oversee operations, launched a number of attacks on rebel forces in the east, transferred ownership of Ukraine’s vital pipeline system to US puppets and foreign corporations, created a tollbooth separating Moscow from the lucrative EU market, foiled a Russian plan to build an alternate pipeline to southern Europe (South Stream), built up its military assets in the Balkans and Black Sea and, finally–the cherry on the cake–initiated a daring sneak attack on Russia’s currency by employing its Saudi-proxy to flood the market with oil, push prices off a cliff, and trigger a run on the ruble which slashed its value by more than half forcing retail currency platforms to stop trading the battered ruble until prices stabilized.

Like we said, Putin might be a great chess player, but in his battle with the US, he’s getting his clock cleaned. So far, he’s been no match for the maniacal focus and relentless savagery of the Washington powerbrokers. Yes, he’s formed critical alliances across Asia and the world. He’s also created competing institutions (like the BRICS bank) that could break the imperial grip on global finance. And, he’s also expounded a vision of a new world in which “one center of power” does not dictate the rules to everyone else. That’s all great, but he’s losing the war, and that’s what counts. Washington doesn’t care about peoples’ dreams or aspirations. What they care about is ruling the world with an iron fist, which is precisely what they intend to do for the next century or so unless someone stops them. Putin’s actions, however admirable, have not yet changed that basic dynamic. In fact, this latest debacle (authored by the RCB) is a severe setback for the country and could impact Russia’s ability to defend itself against US-NATO aggression.

So what does Putin need to do to reverse the current trend?

The first order of business should be a fundamental change in approach followed by a quick switch from defense to offense. There should be no doubt by now, that Washington is going for the jugular. The attack on the ruble provides clear evidence that the US will not be satisfied until Russia has been decimated and reduced to “a permanent state of colonial dependency.” (Chomsky) The United States has launched a full-blown economic war on Russia and yet the Kremlin is still acting like Washington’s punching bag. You can’t win a war like that. You have to take the initiative; take chances, be bold, think outside the box. That’s what Washington is doing. The rout of the ruble is perhaps the most astonishingly-successful asymmetrical attack in recent memory. It involved tremendous risks and costs on the part of the perpetrators. For example, the lower oil prices have ravaged important domestic industries, created widespread financial instability, and sent markets across the planet into a nosedive. Even so, Washington persevered with its audacious strategy, undeterred by the vast collateral damage, never losing sight of its ultimate objective; to deprive Moscow of crucial oil revenues, to crash the ruble, and to open up Central Asia for imperial expansion and US military bases. (The pivot to Asia)

This is how the US plays the game, by keeping its “eyes on the prize” at all times, and by rolling roughshod over anyone or anything that gets in its way. That is why the US is the world’s only superpower, because the voracious oligarchs who run the country will stop at nothing to get what they want.

Does Putin have the grit to match that kind of venomous determination? Has he even adjusted to the fact that WW3 will be unlike any conflict in the past, that jihadi-proxies and Neo Nazi-proxies will be employed as shock troops for the empire clearing the way for US special forces and foot soldiers who will hold ground and establish the new order? Does he even realize that Barbarossa 2 is already underway, but that the Panzer divisions and 2 million German regulars have been replaced with high-powered computers, covert ops, color-coded revolutions, currency crises, capital flight, cyber attacks and relentless propaganda. That’s 4th Generation (4-G) warfare in a nutshell. And, guess what? The US attack on the ruble has shown that it is the undisputed master of this new kind of warfare. More important, Washington has just prevailed in a battle that could prove to be a critical turning point if Putin doesn’t get his act together and retaliate.

Retaliate?!?

You mean nukes?

Heck no. But, by the same token, you can’t expect to win a confrontation with the US by rerouting gas pipelines to Turkey or by forming stronger coalitions with other BRICS countries or by ditching the dollar. Because none of that stuff makes a damn bit of difference when your currency is in the toilet and the US is making every effort to grind your face into the pavement.

Capisce?

There’s an expression is football that goes something like this: The best defense is a good offense. You can’t win by sitting on the sidelines and hoping your team doesn’t lose. You must engage your adversary at every opportunity never giving ground without a fight. And when an opening appears where you can take the advantage, you must act promptly and decisively never looking back and never checking your motives. That’s how you win.

Washington only thinks in terms winning. It expects to win, and will do whatever is necessary to win. In fact, the whole system has been re-geared for one, sole purpose; to beat the holy hell out of anyone who gets out of line. That’s what we do, and we’ve gotten pretty good at it. So, if you want to compete at that level, you’ve got to have “game”. You’re going to have to step up and prove that you can run with the big kids.

And that’s what makes Putin’s next move so important, crucial really. Because whatever he does will send a message to Washington that he’s either up to the challenge or he’s not. Which is why he needs to come out swinging and do something completely unexpected. The element of surprise, that’s the ticket. And we’re not talking about military action either. That just plays to Uncle Sam’s strong hand. Putin doesn’t need another Vietnam. He needs a coherent gameplan. He needs a winning strategy. He needs to takes risks, put it all on the line and roll the freaking dice. You can’t lock horns with the US and play it safe. That’s a losing strategy. This is smash-mouth, steelcage smackdown, a scorched-earth event where winner takes all. You have to be ready to rumble.

Putin needs to think asymmetrically. What would Obama do if he was in Putin’s shoes?

You know what he’d do: He’d send military support to Assad. He’d arm rebel factions in Saudi Arabia, Somalia, Nigeria and elsewhere. He’d strengthen ties with Venezuela, Bolivia, Ecuador providing them with military, intelligence and logistical support. He’d deploy his NGOs and Think Tank cronies to foment revolution wherever leaders refused to follow Moscow’s directives. He would work tirelessly to build the economic, political, media, and military institutions he needed to impose his own self-serving version of snatch-and-grab capitalism on every nation on every continent in the world. That’s what Obama would do, because that’s what his puppetmasters would demand of him.

But Putin must be more discreet, because his resources are more limited. But he still has options, like the markets, for example. Let’s say Putin announces that creditors in the EU (particularly banks) won’t be paid until the ruble recovers. How does that sound?

Putin: “We’re really sorry about the inconvenience, but we won’t be able to make those onerous principle payments for a while. Please accept our humble apologies.” End of statement.

Moments later: Global stocks plunge 350 points on the prospect of a Russian default and its impact on the woefully-undercapitalized EU banking system.

Get the picture? That’s what you call an asymmetrical attack. The idea was even hinted at in a piece on Bloomberg News. Here’s an excerpt from the article:

“Sergei Markov, a pro-Putin academic, wrote in a column on Vzglyad.ru. “Since the reasons for the ruble’s fall are political, the response should be political, too. For example, a law that would ban Russian companies from repaying debts to Western counterparties if the ruble has dropped more than 50 percent in the last year. That will immediately lower the pressure on the ruble, many countries have done this, Malaysia is one example. It’s in great economic shape now.” (Is Russia ready to impose capital controls? Chicago Tribune)

Here’s more background from RT:

“Major banks across Europe, as well as the UK, US, and Japan, are at major risk should the Russian economy default, according to a new study by Capital Economics. The ING Group in the Netherlands, Raiffeisen Bank in Austria, Societe General in France, UniCredit in Italy, and Commerzbank in Germany, have all faced significant losses in the wake of the ruble crisis…

Overall Societe General, known as Rosbank in the Russian market, has the most exposure at US$31 billion, or €25 billion, according to Citigroup Inc. analysts. This is equivalent to 62 percent of the Paris-based bank’s tangible equity, Bloomberg News reported.

Following the drop, Raiffeisen, which has €15 billion at risk in Russia, saw its stocks plummeted more than 10 percent. Raiffeisen also has significant exposure in Ukraine, which is facing a similar currency sell-off as Russia.” (Russia crisis leaves banks around the world exposed by the billions, RT)

So Putin defaults which nudges the EU banking system down the stairwell. So what? What does that prove?

It proves that Russia has the tools to defend itself. It proves that Putin can disrupt the status quo and spread the pain a bit more equitably. “Spreading the pain” is a tool the US uses quite frequently in its dealings with other countries. Maybe Putin should take a bite of that same apple, eh?

Another option would be to implement capital controls to avoid ruble-dollar conversion and further capital flight. The beauty of capital controls is that they take power away from the big money guys who run the world and hand it back to elected officials. Leaders like Putin are then in a position to say, “Hey, we’re going to take a little break from the dollar system for while until we get caught up. I hope you’ll understand our situation.”

Capital controls are an extremely effective of avoiding capital flight and minimizing the impact of a currency crisis. Here’s a short summary of how these measures helped Malaysia muddle through in 1998:

“When the Asian financial crisis hit, Malaysia’s position looked a lot like Russia’s today: It had big foreign reserves and a low short-term debt level, but relatively high general indebtedness if households and corporations were factored in. At first, to bolster the ringgit, Deputy Prime Minister Anwar Ibrahim pushed through a market-based policy with a flexible exchange rate, rising interest rates and cuts in government spending. It didn’t work: Consumption and investment went down, and pessimism prevailed, exerting downward pressure on the exchange rate.

So, in June 1998, Prime Minister Mahathir Mohammad… appointed a different economic point man, Daim Zainuddin. In September, on Daim’s urging, Malaysia introduced capital controls. It banned offshore operations in ringgit and forbade foreign investors to repatriate profits for a year. Analysts at the time were sharply critical of the measures, and Malaysia’s reputation in the global financial markets inevitably suffered.

According to Kaplan and Rodrik, however, the capital controls were ultimately effective. The government was able to lower interest rates, the economy recovered, the controls were relaxed ahead of time, and by May 1999 Malaysia was back on the international capital markets with a $1 billion bond issue.” (Is Russia ready to impose capital controls, Chicago Tribune)

Sure they were effective, but they piss off the slacker class of oligarchs who think the whole system should be centered on their “inalienable right” to move capital from one spot to another so they can rake-off hefty profits at everyone else’s expense. Capital controls push those creeps to the back of the line so the state can do what it needs to do to preserve the failing economy from the attack of speculators. Here’s a clip from a speech Joseph Stiglitz gave in 2014 at the Atlanta Fed’s 2014 Financial Markets Conference. He said:

“When countries do not impose capital controls and allow exchange rates to vary freely, this can give rise to high levels of exchange rate volatility. The consequence can be high levels of economic volatility, imposing great costs on workers and firms throughout the economy. Even if they can lay off some of the risk, there is a cost to doing so. The very existence of this volatility affects the structure of the economy and overall economic performance.”

That sums it up pretty well. Without capital controls, the deep-pocket Wall Street banks and speculators can simply vacuum the money out of an economy leaving the country broken and penniless. This nihilistic decimation of emerging markets via capital flight is what the kleptocracy breezily refers to as “free markets”, the unwavering plundering of civilization to fatten the coffers of the swinish few at the top of the foodchain. That’s got to stop.

Putin needs to put his foot down now; stop the outflow of cash, stop the conversion of rubles to dollars, force investors to recycle their money into the domestic economy, indict the central bank governors and trundle them off to the hoosegow, and reassert the power of the people over the markets. If he doesn’t, then the speculators will continue to peck away until Russia’s reserves are drained-dry and the country is pushed back into another long-term slump. Who wants that?

And don’t think that Putin’s only problem is Washington either, because it isn’t. He’s got an even bigger headache in his own country with the morons who still buy the hogwash that “the market knows best.” These are the fantasists, the corporate toadies, and the fifth columnists, some of whom hold very high office. Here’s a clip I picked up at the Vineyard of the Saker under the heading “Medvedev declares: more of the same”:

(Russian Prime Minister) “Medvedev has just called a government meeting with most of the directors of top Russian corporations and the director of the Russian Central Bank. He immediately announced that he will not introduce any harsh regulatory measures and that he will let the market forces correct the situation. As for the former Minister of Finance, the one so much beloved in the West, Alexei Kudrin, he expressed his full support for the latest increase in interest rates.”

This is lunacy. The US has just turned Russia’s currency into worthless fishwrap, and bonehead Medvedev wants to play nice and return to “business as usual”??

No thanks. Maybe Medvedev wants to be a slave to the market, but I’ll bet Putin is smarter than that.

Putin’s not going to roll over and play dead for these vipers. He’s got to much on the ball for that. He’s going to beat them at their own game, fair and square. He’s going to implement capital controls, restructure the economy away from the west, and aggressively look for ways to deter Washington from spreading its heinous resource war to Central Asia and beyond.

He’s not going to give an inch. You’ll see.


Mike Whitney is a regular columnist for Veracity Voice

Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com

Mystery, Fear, And Confusion

December 14, 2014 by · 2 Comments 

The Product of The American Government…

I have vowed not to watch programs on TV Channels that select the majority of their participants from two particular racial minorities. C-Span has been guilty of that distortion and I have purposely neglected it as a result.  However, I like Brian Lamb’s interviews when he is not stuck with the anointed races.  Recently he interviewed James Risen http://www.c-span.org/video/?322401-1/qa-james-risen , a New York Times writer and the author of a couple of investigative books that have gotten him indicted by our tyrannical government.

It is difficult to comprehend how in about two centuries the United States of America has evolved from a new nation whose leaders advised that it not become involved with foreign intrigues to a nation that seeks to dominate the entire world.

There were clues.  Even in its infancy it was avaricious.  Expansion seemed to be in its blood.  It captured the land from the Atlantic to the Pacific and garnered the Far Eastern island of the Philippines, Cuba in the Caribbean, and Alaska to our North.  It imposed its will on South American nations and fought several wars including one with our Southern neighbor, Mexico.  It even tried to annex Canada.

Following the devious imposition of the Federal Reserve System it flowered into international leadership.  Wars became a means for gaining control over other nations and no longer had anything to do with the nation’s welfare.  From that time on a mysterious power seemed to have hand on the rudder of the America ship.  The League of Nations, founded after WWI, was unable to gain widespread support but following WWII the United Nations, a second similar organization, emerged and has been working behind the scenes to gain control over various entities within nations around the world.

Suddenly, after the mysterious 9/11 event, United States separated itself from the United Nations and became the leader of an operation called the “War on Terror”.  The War on Terror did not specify an enemy; the dictionary defines terror as a “state of intense fear”.  From that definition it appears that the United States has embarked on a mission to eliminate fear by bombing, invading, and tyrannizing a series of Middle Eastern nations most of which are Muslim and enemies of neo-Israel.

While we fight the endless war on terror Muslims have been encouraged to immigrate into Western nation in both Europe and America.  Allowing the so-called enemy to infiltrate the adversary’s borders is a seeming contradiction in intent and has caused serious conflicts.

Near the end of the interview with Brian Lamb, Risen tells Lamb that the purpose of the War on Terror is mysterious and that many things are hard to understand.  He says it is difficult to determine what is real and what is fiction.  Lamb made no comment and did not pursue the subject.

Risen recounted a story about Senator Ron Wyden who for several months spoke of some injurious action that would upset the American people but he could not say what it was.  Only after Edward Snowden’s NSA revelation did the Senator admit that this was the thing he had not mentioned.  Risen used this to illustrate the lack of oversight that surrounds our intelligence agencies and the war in general.

If James Risen with his extensive investigation cannot understand the war on terror it is not wonder that United States citizens neither understand it nor pay much attention it.  Life goes on as if continuous war is normal. Trillions of dollars of debt accumulate to the account of American citizens and neither congress nor the people, nor the press mounts a substantial challenge.

This mysterious war on terror has caused the structure of a police state to rise over freedom.  Most of the laws enacted to protect the people from the government have been abolished and the structure that has been erected can be activated at will.

Risen has challenged a tiny part of the monster.  He seeks freedom of the press as indispensable for the maintenance of a free nation.  He is not challenging the entire series of questionable events that have brought us to this point nor the pervasive press control that has saturated all of our news outlets. The destruction of the World Trade Centers has never been properly investigated.  The evidence available defies the government’s story but our timid elected officials fail to provide a challenge. The mysterious power that seems to control us has frightened everyone and the highly visible, small, though brave, challenge Risen has mounted is a drop in the bucket.

As airplanes fly over our cities and create long slender clouds citizens ignore them.  The mention of this startling operation brings a hush to the conversation.  People know that a mysterious force is operating and are afraid of it.  In previous times a shocking appearance of this kind would have brought a crowd to government offices demanding to know what was going on.  Today, like frogs in the boiling pot we are accepting more and more serious infractions without protest.

The Bush family has been pawns in the quest for world tyranny for several generations.  In the coming national election Jeb Bush, the former Governor of Florida, is positioning himself to be the Republican nominee.  The American people will not be given a choice.  Jeb Bush affixed his signature to the Project for the New American Century (PNAC). https://en.wikipedia.org/wiki/Project_for_the_New_American_Century  This organization bears substantial responsibility for the war on terror.  It signers and crafters were stained with the philosophies of Leon Trotsky.

As a presidential election looms the press and media begin to give the pre-selected candidates free publicity.  Widely hated former President George W. Bush wrote a book and is now seen on TV doing light and jolly sessions with former President William J. Clinton.  Though Jeb Bush is not shown the publicity is designed to create a favorable impression of the candidate in the minds of the public.  It is effective.  One need only look to the inappropriate candidacy of President Barak Obama to understand the ability of the press and media to manipulate the electorate.

Any candidate for President of the United States that sincerely means to act in the best interests of the people of the United States will be purposely marginalized by the press and media.  Both Congressman Dr. Ron Paul and Patrick Buchanan had to fight a negative press.  Though these candidates had a sizeable following their platform was never given serious coverage.  They were lucky to be allowed to join the presidential debates and when they did they were marginalized and were made to look foolish.

The next President of the United States of America will continue the policies set in place by President George W. Bush and President Barak Obama.  Massive debt will continue to accumulate, perpetual war will continue, moral deterioration will progress, the presidency will increase in power, and freedom will continue to deteriorate.  It is in the best interests of the world power seekers to maintain peace but that does not mean the riots will not continue.  Trotskyites in the press and media view riots as an opportunity to consolidate power.

We have forgotten the Creator, the Triune Christian God who was the power behind the founding of our nation.  We have forsaken the humility of the creature and usurped the station of the Creator, a position we are ill equipped to occupy.  We are created beings, unable to govern ourselves; the confusion of cognitive dissonance is a result.   Peace tarries until we begin to allow the Master to assume His role of King and Ruler.


Al Cronkrite is a writer living in Florida, reach him at: trueword13@yahoo.com

Al Cronkrite is a regular columnist for Veracity Voice

Will Falling Oil Prices Crash The Markets?

December 14, 2014 by · Leave a Comment 

Shale Leads The Way…

Crude oil prices dipped lower on Wednesday pushing down yields on US Treasuries and sending stocks down sharply. The 30-year UST slipped to a Depression era 2.83 percent while all three major US indices plunged into the red. The Dow Jones Industrial Average (DJIA) led the retreat losing a hefty 268 points before the session ended. The proximate cause of Wednesday’s bloodbath was news that OPEC had reduced its estimate of how much oil it would need to produce in 2015 to meet weakening global demand. According to USA Today:

“OPEC lowered its projection for 2015 production to 28.9 million barrels a day, or about 300,000 fewer than previously forecast, and a 12-year low…. That’s about 1.15 million barrels a day less than the cartel pumped last month, when OPEC left unchanged its 30 million barrel daily production quota…

The steep decline in crude price raises fears that small exploration and production companies could go out of business if the prices fall too low. And that, in turn, could cause turmoil among those who are lending to them: Junk-bond purchasers and smaller banks.” (USA Today)

Lower oil prices do not necessarily boost consumption or strengthen growth. Quite the contrary. Weaker demand is a sign that deflationary pressures are building and stagnation is becoming more entrenched. Also, the 42 percent price-drop in benchmark U.S. crude since its peak in June, is pushing highly-leveraged energy companies closer to the brink. If these companies cannot roll over their debts, (due to the lower prices) then many will default which will negatively impact the broader market. Here’s a brief summary from analyst Wolf Richter:

“The price of oil has plunged …and junk bonds in the US energy sector are getting hammered, after a phenomenal boom that peaked this year. Energy companies sold $50 billion in junk bonds through October, 14% of all junk bonds issued! But junk-rated energy companies trying to raise new money to service old debt or to fund costly fracking or off-shore drilling operations are suddenly hitting resistance.

And the erstwhile booming leveraged loans, the ugly sisters of junk bonds, are causing the Fed to have conniptions. Even Fed Chair Yellen singled them out because they involve banks and represent risks to the financial system. Regulators are investigating them and are trying to curtail them through “macroprudential” means, such as cracking down on banks, rather than through monetary means, such as raising rates. And what the Fed has been worrying about is already happening in the energy sector: leveraged loans are getting mauled. And it’s just the beginning…

“If oil can stabilize, the scope for contagion is limited,” Edward Marrinan, macro credit strategist at RBS Securities, told Bloomberg. “But if we see a further fall in prices, there will have to be a reaction in the broader market as problems will spill out and more segments of the high-yield space will feel the pain.”…Unless a miracle happens that will goose the price of oil pronto, there will be defaults, and they will reverberate beyond the oil patch.” (Oil and Gas Bloodbath Spreads to Junk Bonds, Leveraged Loans. Defaults Next, Wolf Ricter, Wolf Street)

The Fed’s low rates and QE pushed down yields on corporate debt as investors gorged on junk thinking the Fed “had their back”. That made it easier for fly-by-night energy companies to borrow tons of money at historic low rates even though their business model might have been pretty shaky. Now that oil is cratering, investors are getting skittish which has pushed up rates making it harder for companies to refinance their debtload. That means a number of these companies going to go bust, which will create losses for the investors and pension funds that bought their debt in the form of financially-engineered products. The question is, is there enough of this financially-engineered gunk piled up on bank balance sheets to start the dominoes tumbling through the system like they did in 2008?

That question was partially answered on Wednesday following OPEC’s dismal forecast which roiled stocks and send yields on risk-free US Treasuries into a nosedive. Investors ditched their stocks in a mad dash for the exits thinking that the worst is yet to come. USTs provide a haven for nervous investors looking for a safe place to hunker down while the storm passes.

Economist Jack Rasmus has an excellent piece at Counterpunch which explains why investors are so jittery. Here’s a clip from his article titled “The Economic Consequences of Global Oil Deflation”:

“Oil deflation may lead to widespread bankruptcies and defaults for various non-financial companies, which will in turn precipitate financial instability events in banks tied to those companies. The collapse of financial assets associated with oil could also have a further ‘chain effect’ on other forms of financial assets, thus spreading the financial instability to other credit markets.” (The Economic Consequences of Global Oil Deflation, Jack Rasmus, CounterPunch)

Falling oil prices typically drag other commodities prices down with them. This, in turn, hurts emerging markets that depend heavily on the sale of raw materials. Already these fragile economies are showing signs of stress from rising inflation and capital flight. In a country like Japan, however, one might think the effect would be positive since the lower yen has made imported oil more expensive. But that’s not the case. Falling oil prices increase deflationary pressures forcing the Bank of Japan to implement more extreme measures to reverse the trend and try to stimulate growth. What new and destabilizing policy will Japan’s Central Bank employ in its effort to dig its way out of recession? And the same question can be asked of Europe too, which has already endured three bouts of recession in the last five years. Here’s Rasmus again on oil deflation and global financial instability:

“Oil is not only a physical commodity bought, sold and traded on global markets; it has also become an important financial asset since the USA and the world began liberalized trading of oil commodity futures…

Just as declines in oil spills over to declines of other physical commodities…price deflation can also ‘spill over’ to other financial assets, causing their decline as well, in a ‘chain like’ effect.

That chain like effect is not dissimilar to what happened with the housing crash in 2006-08. At that time the deep contraction in the global housing sector ( a physical asset) not only ‘spilled over’ to other sectors of the real economy, but to mortgage bonds…and derivatives based upon those bonds, also crashed. The effect was to ‘spill over’ to other forms of financial assets that set off a chain reaction of financial asset deflation.

The same ‘financial asset chain effect’ could arise if oil prices continued to decline below USD$60 a barrel. That would represent a nearly 50 percent deflation in oil prices that could potentially set in motion a more generalized global financial instability event, possibly associated with a collapse of the corporate junk bond market in the USA that has fueled much of USA shale production.” (CounterPunch)

This is precisely the scenario we think will unfold in the months ahead. What Rasmus is talking about is “contagion”, the lethal spill-over from one asset class to another due to deteriorating conditions in the financial markets and too much leverage. When debts can no longer be serviced, defaults follow sucking liquidity from the system which leads to a sudden (and excruciating) repricing event. Rasmus believes that a sharp cutback in Shale gas and oil production could ignite a crash in junk bonds that will pave the way for more bank closures. Here’s what he says:

“The shake out in Shale that is coming will not occur smoothly. It will mean widespread business defaults in the sector. And since much of the drilling has been financed with risky high yield corporate ‘junk’ bonds, the shale shake out could translate into a financial crash of the US corporate junk bond market, which is now very over-extended, leading to regional bank busts in turn.” (CP)

The financial markets are a big bubble just waiting to burst. If Shale doesn’t do the trick, then something else will. It’s just a matter of time.

Rasmus also believes that the current oil-glut is politically motivated. Washington’s powerbrokers persuaded the Saudis to flood the market with petroleum to push down prices and crush oil-dependent Moscow. The US wants a weak and divided Russia that will comply with US plans to increase its military bases in Central Asia and allow NATO to be deployed to its western borders. Here’s Rasmus again:

“Saudi Arabia and its neocon friends in the USA are targeting both Iran and Russia with their new policy of driving down the price of oil. The impact of oil deflation is already severely affecting the Russian and Iranian economies. In other words, this policy of promoting global oil price deflation finds favor with significant political interests in the USA, who want to generate a deeper disruption of Russian and Iranian economies for reasons of global political objectives. It will not be the first time that oil is used as a global political weapon, nor the last.” (CP)

Washington’s strategy is seriously risky. There’s a good chance the plan could backfire and send stocks into freefall wiping out trillions in a flash. Then all the Fed’s work would amount to nothing.

Karma’s a bitch.


Mike Whitney is a regular columnist for Veracity Voice

Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com

Grateful That I’m Not A Wealthy Widow In Chicago (and not a Ukrainian or Syrian either)

December 14, 2014 by · Leave a Comment 

Author’s note:  I haven’t had much to be grateful for this past Thanksgiving because I spent that time recovering from an operation that involved re-breaking my arm, realigning the bones in my left hand and having nine pins, a bone graft and a titanium plate installed.  Ouch!  So now I’m all busy trying to make up for lost time and dreaming up things to be thankful for.  Here are a couple of items I’ve come up with (besides my wonderful family of course).

To paraphrase that song by Kermit the Frog, “It’s not easy being old.” There just aren’t that many perks involved.  Your teeth fall out.  Your joints freeze up.  Say goodbye to your sex life, no matter what they claim about Viagra.  Plus no one ever invites you to parties any more and you can no longer Twerk.

However, having enough money to make yourself comfortable in your old age can surely help alleviate all those various aches and pains associated with old age — unless of course you are an elderly widow living in Chicago and have 100K or more in your savings account.  Because if that is you, then getting old is really really gonna to suck eggs.

“But, Jane,” you might ask, “why is that?”  Let me tell you.

You’ve heard of ambulance-chasing lawyers before, right?  Well, in Chicago they also have rich-widow-chasing lawyers.  These heartless scoundrels actually go out and scour through various tax and real estate records until they find clues to locating financially-solvent yet vulnerable senior citizens, preferably rich widows.  And then they move in for the kill.

The first thing they do is have their target victims declared incompetent — which is not all that hard to do when you have Chicago’s probate courts helping you out.  Then they get themselves appointed Guardian ad Litems for these vulnerable wealthy elders.  And then the fun part begins.

“First they pop these poor souls into rest homes where they are warehoused, starved, fed tranquilizers and ignored,” said one family member whose mother had been victimized in Chicago.  “Then they sell their victim’s home, empty her bank accounts and pocket the profits — calling all these ill-begotten gains their ‘fees’ for services rendered.  And then, when the victim has no more money left, they then throw her unceremoniously out of the rest home and onto the cold streets of Chicago — that is, if she is still alive.”

But there is hope.  Some relatives of the victims and other conscientious local attorneys are starting to fight back.  For instance, Joanne Denison, an honest Chicago attorney with a conscience, stumbled onto this racket about three years ago by accident and tried to do something to stop these malfesiants.  “So what did she do?” you might ask.  Denison started a blog.  That’s all she did.  She started a blog to try to expose some of these worst practices and blow the whistle on said legal vultures.

According to Denison’s blog, “40% of all psychotropic drugs are sold to nursing homes as illegal chemical restraints, and no one ever seems to do anything about it, even though they are deadly dangerous to most elders and the FDA says they are contra-indicated or not recommended for those under 20 or over 60.”

“So what happened to attorney Denison as a result?” you might ask next.  What do you think happened to her?  This is Chicago — not Utopia.  Her attorney’s license has just been suspended for three years.

Now we all know that Rush Limbaugh and Fox News can tell any lie that they want over public airwaves and/or on the internet and get away with it, right?  But if you ever dare to tell the truth and expose corruption in Chicago, you had better watch out.

And if you are a wealthy widow in Chicago, you had better really watch out!

So during this week after Thanksgiving I’m gonna be super-grateful for a lot of things — and one of those things is going to be that I’m not a widow, am not wealthy and don’t live in Chicago!

“What else are you going to be grateful for?” might be your next question.

“That I don’t live in Ukraine or Syria or any other foreign country that the US or NATO or BIBI has its eyes on.”  If there’s just one take-away that I’ve learned after enduring all this pain in my left arm, it’s that injuries to our bodies can really really hurt, really hurt a lot.  And that a human body will probably hurt even a hecka lot more if you are hit by a NATO smart-bomb in Ukraine or if an American-made cruise missile lands on you in Gaza or if you get gang-raped by American-funded ISIS in Syria — and have no pain-killers or hospitals or doctors to help you out like I did.

Do I think that the rich widows of Chicago have it bad?  Yeah.  But this sad injustice is almost minimal compared to having the vultures of Wall Street and War Street eying your assets and trying to steal them by torturing, raping and blowing up yourself and your kids.

At least the rich widows of Chicago don’t have to worry about getting hit with NATO smart bombs or having their heads chopped off!

Not really sure why I’m worried about getting old.  It’s probably not gonna happen to any of us anyway — at least not while the deep-state neo-cons who now control America, Israel and NATO are all so bound and determined to try to pick a fight with Russia, China and Iran (one that they truly can’t win).

And if all this current saber-rattling foolishness doesn’t kill us all off in a mass wave of war-induced grim reaping, then don’t forget that climate-change-run-a-muck will be sending us off to the happy hunting ground soon too.

Have the oligarchs of DC and NATO and BIBI totally lost their minds — or do they just have a death wish for peons like you and me?  Either way, these malfesiants now hold all the power and the rest of us are all screwed.

But here is the good news.

Perhaps facing WW III and/or the coming climate apocalypse might end up being a good thing.  “But how?”  Because now we’re all going to have an air-tight excuse to run down to the mall, max out our credit cards and buy all kinds of new gear to wear to the show.  https://hughw.net/h2o/texas-water-well-level-movie.html  How’s that for positive thinking!

And here’s another positive thought.  Extinction of the entire human race will surely mean that we won’t have to worry about who is gonna pay for our funeral — because there will be no one left alive to attend it!  Sorry, guys, but there won’t be any “handsome corpses” on display at the local funeral chapel any more.  Rats.  I was really looking forward to that.

I am so freaking bored from sitting around doing nothing while waiting for my arm to heal that I actually checked Thomas Piketty’s new book, “Capital in the Twenty-First Century,” out from the library.  If I’m going to be bored, I might as well be really bored.

“The main driver of inequality today [which appears to be wanky pseudo-capitalism run amuck] threatens to generate extreme inequalities that stir discontent and undermine democratic values,” sez the dust jacket.  Just one more reason why I won’t have to worry about paying for my own funeral — I won’t be able to afford it.  And neither will you.

“But if you’re so bored, then why don’t you just go see the film ‘Interstellar’ instead,” suggested one of my kids.  Good idea.  Now I can go watch our planet die on the big screen instead of having to wait to watch it die in real life.  http://www.theguardian.com/money/2014/sep/21/-sp-thomas-piketty-bestseller-why


Jane Stillwater is a regular columnist for Veracity Voice
She can be reached at: jpstillwater@yahoo.com

Russia’s Sergey Lavrov “Clash of Civilizations”

December 7, 2014 by · Leave a Comment 

Since the Western Press has directed their wrath at Vladimir Putin as their latest villain, while his approval rate soars to 88% in Russia, most Americans are not familiar with Foreign Minister of Russia Sergey Lavrov, much less know his public statements. Lavrov is a thoughtful contrast to the rigid and contemptuous foreign policy spokesmen’s from the Soviet era. It is well worth the time to investigate the actual sentiments that Lavrov has expressed throughout his diplomatic career. An insight of the mindset that underpins his thinking is revealed over two years ago, in the Voltaire Network, which published Sergey Lavrov’s account, On the Right Side of History and provided the following assessment.

“Western propaganda continues to distort Russia’s position in respect of the Syrian crisis. It accuses Moscow of supporting Damascus for profit motives, or even criminal solidarity. In this piece, Sergey Lavrov does not expound on his country’s strategic choices, but rather on the principles that underpin his diplomacy. He responds imperturbably to the inanities spouted by Western media, underscoring Moscow’s commitment to international law and its pledge to support people. Lavrov counterpoints the massive popular support enjoyed by President al-Assad and the illegitimacy of the sectarian armed opposition, sponsored from abroad.”

Quoting from the Lavrov test:

“Back in the 1990s in his book The Clash of Civilisations, Samuel Huntington outlined the trend of the increasing importance of identity based on civilisation and religion in the age of globalization; he also convincingly demonstrated the relative reduction in the abilities of the historic West to spread its influence. It would definitely be an overstatement if we tried to build a model of the modern international relations solely on the basis of such assumptions. However, today it is impossible to ignore such a trend. It is caused by an array of different factors, including more transparent national borders, the information revolution which has highlighted blatant socio-economic inequality, and the growing desire of people to preserve their identity in such circumstances and to avoid falling into the endangered species list of history.”

From the official site of THE MINISTRY OF FOREIGN AFFAIRS OF THE RUSSIAN FEDERATION, read the entire remarks by Foreign Minister Sergey Lavrov at the latest Council on Foreign and Defense Policy meeting. The information contained in these annotations requires a serious evaluation.

Watch the video, ‘Western sanctions aimed at regime change in Russia’ – Lavrov that supplements the text account. Interrupting the significance of this presentation, the blog – The Vineyard of the Saker writes an account of the Remarks by Foreign Minister Sergey Lavrov at the XXII Assembly of the Council on Foreign and Defense Policy, Moscow, 22 November 2014.

I have bolded out what I consider to be the most important statements made by Lavrov that day.  I would just like to add the following:

1)  Lavrov is considered very much a “moderate” and his language has always been strictly diplomatic.  So when you read Lavrov, just imagine what folks in other Russian ministries are thinking.

2) Lavrov makes no secret of his view of the USA and of his plans for the future of our planet.  When you read his words, try to imagine what a US Neocon feels and thinks and you will immediately see why the US elites both hate and fear Russia.

3) Finally, Lavrov openly admits that Russia and China have forged a long-term strategic alliance (proving all the nay-sayers who predicted that China would backtstab Russian wrong).  This is, I would argue, the single most important strategic development in the past decade.

4)  Finally, notice the clear contempt which Lavrov has for a pseudo-Christian “West” which dares not speak in defense of persecuted Christians, denies its own roots, and does not even respect its own traditions.

Complimenting this viewpoint is the YouTube, Lavrov: West stuck with Cold War mentality (UN Gen Assembly Full Q&A). If Lavrov is correct that the NeoCon American foreign policy after the collapse of the Soviet empire has positioned itself to become the single dominating armed force on the planet, what other results but an unending warfare environment can one expect? Longing for an enemy to keep the military machine in high gear certainly is perceived by the rest of the world as threatening.

Blogger Nick Freiling presents an assessment in, What the others are saying, of the following Lavrov quotation.

“In attempting to establish their pre-eminence at a time when new economic, financial and political power centres are emerging, the Americans provoke counteraction in keeping with Newton’s third law and contribute to the emergence of structures, mechanisms, and movements that seek alternatives to the American recipes for solving the pressing problems. I am not referring to anti-Americanism, still less about forming coalitions spearheaded against the United States, but only about the natural wish of a growing number of countries to secure their vital interests and do it the way they think right, and not what they are told “from across the pond.”

Mr. Freiling writes his own comments.

“It’s worth noting that perspectives like these aren’t totally absent from mainstream punditry in the U.S. Libertarians, for one, have long warned about the dangers of stretching American resources too thin in pursuit of foreign policy initiatives that don’t have immediate national security implications. Politicians like Rand Paul have even brought hints of such sentiments into the mainstream.

But this is still a far cry from what most Americans consider an “orthodox” perspective on U.S. foreign policy, even if most people agree we’re overextended in many world arenas.”

The fourth point that the Vineyard of the Saker makes, is expanded upon in the Radical Reactionary essay, Western Secularism vs. Russian Christian Revival where the background and recent direction in Russia is traced.

If you expand your analysis beyond mere political and economic context, the Lavrov foreign policy initiative has a component of emphasizing a traditional and historic cultural motivation. While a religious factor may not have anything to do with forging a new Russia and China alliance, dismissing a spiritual and inward revival in Russia would be a profound error.

Radio Free Europe in the article, Orthodox Churches Fight Back As Eastern Europe Pushes To Modernize, Secularize, makes the case and linkage in Tradition of Religious Nationalism parallels Lavrov’s cultural autonomy.

“Geraldine Fagan, a Moscow-based correspondent for the religion-focused news agency Forum 18 and author of the new book “Believing in Russia: Religious Policy After Communism,” says that religious nationalism, although condemned as heresy in the 19th century, is a profound tradition in Orthodox cultures.

“In many cases, Orthodox churches were ministering to a single ethnic group, and this gave rise to nation-states,” Fagan told RFE/RL in an e-mail. “And there is a lingering sense in places across the Orthodox world that national security depends in a profound — even mystical – way on the nation remaining Orthodox.”

The difference of a nation state from an empire is crucial for comprehending the nature of a legitimate government. The fall of the Soviet empire was inevitable. The notion that an American empire will avoid the same fate is absurd.

This “Clash of Civilizations” is understandable not because either empire rode the high moral road, but because both abandoned the fundamental principles that create a viable society and nation.

Civilization is fragile and requires a deep commitment to institutions that practice and administer legal justice, traditional social values and high moral standards. Maintaining governments that earn the rightful consent of its citizens is difficult and usually breaks down over time.

International affairs are even more delicate than internal equilibrium. Countries do not have permanent allies, they only have interests. Russia has a litany of problems and is no more a friend than any other regime that is exerting its own national self-interest.

The intrepid Brother Nathanael Kapner points the finger at THE ZIONIST HATE CAMPAIGN AGAINST RUSSIA, for an explanation why the pressitute media wants to suppress Russian nationalism. The orthodox cleric is echoing Sergey Lavrov when he cites “For it is NATO that Moscow is opposing owing to its creeping encroachment upon Russia’s borders.”

Americans need to oppose foreign policy adventures and certainly one that risks a global holocaust. Ready for World War III with China?, essay is just as valid when Russia is substituted. What effect would a Russian and Chinese strategic alliance have as the NWO juggernaut continues on it current path to destruction?

Transnational Opposition to Russian Sanctions illustrates why Western countries are playing a dangerous game.  Lavrov’s latest address provides a road map for what Russia is embarking on and what the international community should do to lower the tensions and restore constructive economic and political stability.

It is not too far fetch to imagine a current day, Western version for pounding of shoes, with the message “We Will Bury You” reverberating from the halls of the UN. If this seems ridiculous, ask why pushing a Clash of Civilizations is any different?


Sartre is the publisher, editor, and writer for Breaking All The Rules. He can be reached at: BATR

Sartre is a regular columnist for Veracity Voice

There Are Four Sides To The Ferguson Mess

December 6, 2014 by · 3 Comments 

Press, Cops, Blacks, Whites…

FIRST, it is a difficult job to be a policeman in the USA.  The scourge of racial diversity has created tensions and patterns of behavior that can quickly become violent and the loss of a solid moral fiber has further tangled the job.

As the social structure of our nation deteriorates policemen are faced with a citizenry that often defies their authority and efforts to react to confrontations with conciliation no longer bring a peaceful solution. Youth gangs in Inner-city neighborhoods can quickly overpower individual policemen and in many cities there are areas that firefighters and policemen try to avoid.

This loss of social restraint made it impossible for officers to address lawless behavior without fear for their own safety.  Fear is not only from the offending individual but also from his social peers.  A result of this cultural deterioration is a tendency for policemen to shoot first and ask questions later.

Overreaction to pervasive fear has resulted in dictatorial policies that actually contribute to the problem.  From peacekeepers and guardians of social freedom policemen have become a defense group of belligerent individuals who are armed and often dangerous.  They arrogantly demand instant submission often from innocent citizens thereby destroying the freedom they are vested to support.

Surprise military style raids on homes and apartments that sometimes go terribly wrong are an abomination.  Handcuffing every suspect including women and children is a cowardly procedure that demeans citizens and tarnishes the reputation of law enforcement.  Police squad cars regularly endanger the public by needlessly chasing suspects when recording a license number and waiting would be much more appropriate.  Presenting the public with vigilante justice does not enhance their reputation.

Policemen are hired to be servants of the people but they have become a clannish group that seeks their own protection at the expense of those they are hired to protect. When a single policeman is killed in the line of duty the funeral is a public event with hundreds of “their own” coming from miles around.

Local policemen are the main deterrent to social anarchy and when their ability to create order is lost, the chaos of Ferguson, Missouri is a result.  With this critical understanding the courts support the police in spite of flagrant injustice.

George Zimmerman, not a policeman, was indicted; Darren Wilson, a member of the elite class, was not indicted!

Read an excellent article on police exceptionalism here.

SECOND, the social perspective of Black Americans has been consistently maligned creating a sense of oppression and entitlement that is both unrealistic and potential incendiary.  Freedom is not enough for many Black leaders.  They have made a profession of blaming society for Black problems fabricating a biased picture that fosters indolence, resentment and animosity.   Blacks have a crime rate that is seven or more times higher than White Americans.  This high crime rate makes them a target for suspicion.

Welfare neighborhoods with absent fathers and mothers supported by the government with checks proportional to the number of their illegitimate children are fertile beds for rebellion, disobedience, crime, drugs, and anarchy.

White policemen in Black neighborhoods face a complex problem; pervasive anger and resentment and excessively high crime rates.  The result is suspicion and harassment of all young Blacks.

There are encouraging signs in Black communities.  Some Black families are functioning properly with fathers heading the home and children being disciplined and growing in obedience and productivity.  Some Blacks are tiring of the demeaning effect of welfare and are urging their peers to make it on their own.

A realistic video here.

THIRD, The Caucasian European culture that founded America has been incrementally disenfranchised and replaced by a polyglot of foreign elements that vie for power.  A slow theft of the fabric of our society has been accomplished with guile that exceeds the “Trojan Horse”.  Little insults here and there followed by major incursions now and again have resulted in a transfer of power from the hands of the original inhabitants to those of interlopers with devious intentions. This transfer is from top down and has been sustained by government officials elected by the citizens who incur the loss.

The majority of White Americans want to be left alone to work, provide for their families, and enjoy some recreation.  They are nominally religious and overtly law abiding.  As their neighborhoods have deteriorated into crime and degradation they have moved to other neighborhoods.  They have occasionally staged minor demonstrations but White riots are almost nonexistent.

FOURTH, The American press and Media consistently and with malice aforethought distorts the news.   Both the Michael Brown and Trayvon Martin events would have been judged on a local level if the incidents had not been intentionally corrupted and nationalized.  Scarce as it is White on Black crime is highly publicized while much higher Black on White crime is regularly ignored.

The Trotskyite background that emanates from the lofty towers of the press and media covets the centralization of power that results from the animosity they create. Widespread rioting might bring Martial Law.   Fraudulent coverage of events like the police encounters with Martin and Brown designed to stir up violent, unbridled emotional reactions in the Black community is a criminal offense, and those that are responsible should be indicted and prosecuted.

Though both were found innocent, the press and media has destroyed the lives of both George Zimmerman and Darren Wilson.  Zimmerman has been divorced.  His reputation has been tainted and he is hopelessly in debt.  Now Darren Wilson has resigned from the Ferguson Police force.  Misrepresenting and censoring the news, which is a daily occurrence in America, creates severe social problems.

Pernicious efforts to create discord make the Black community needlessly angry and angry people regularly distort reality.  Blacks do not understand that they are being used as pawns in an effort to weaken the culture.  Lies are interwoven into our news.  When we began to forsake justice and replace it with human sentimentality we created a pit of confusion with walls that resist escape.

Infecting problems are so numerous in American society that solutions have become difficult.  Press and media management has consistently supported what we used to call sin and when the moral fiber of a society is lost problems fester.

  1. J. Rushdoony puts the truth into one short paragraph: “For a man to be guilty requires that he be responsible to a higher being. For a law or justice to prevail over all men, there must again be a God over all.  Having rejected God – (we) –logically rejected both guilt and justice.  If we want justice, we must also accept God.   Our problem today is that our federal and state governments and courts have rejected God.  Therefore, they have rejected justice.  All that is left of the law are empty technicalities.”  (A name was removed and replace with “we”)

We have lost the ability to produce justice.  Our courts no longer seek justice, our policemen no longer understand the meaning of the word; our government has chosen power over justice, and our press and media have supported the whole mess.

God is just; humans are not!


Al Cronkrite is a writer living in Florida, reach him at: trueword13@yahoo.com

Al Cronkrite is a regular columnist for Veracity Voice

Talking Turkey

December 6, 2014 by · Leave a Comment 

Putin Gobsmacks Obama and Euro-Leaders with Surprise Gas Deal…

On Monday, Russian President Vladimir Putin clinched a groundbreaking deal with Turkish President Recep Tayyip Erdoğan that will strengthen economic ties between the two nations and make Turkey the major hub for Russian gas in the region. Under the terms of the agreement, Russia will pump additional natural gas to locations in central Turkey and to a “hub at the Turkish-Greek border” which will eventually provide Putin with backdoor access to the lucrative EU market, although Turkey will serve as the critical intermediary. The move creates a de facto Russo-Turkey alliance that could shift the regional balance of power decisively in Moscow’s favor, thus creating another formidable hurtle for Washington’s “pivot to Asia” strategy.  While the media is characterizing the change in plans (Putin has abandoned the South Stream pipeline project that would have transported gas to southern Europe) as a “diplomatic defeat” for Russia, the opposite appears to be the case.  Putin has once again outmaneuvered the US on both the energy and geopolitical fronts adding to his long list of policy triumphs. Here’s a brief summary from Andrew Korybko at Sputnik News:

“Russia has abandoned the troubled South Stream project and will now be building its replacement with Turkey. This monumental decision signals that Ankara has made its choice to reject Euro-Atlanticsm and embrace Eurasian integration.

In what may possibly be the biggest move towards multipolarity thus far,..Turkey, has done away with its former Euro-Atlantic ambitions. A year ago, none of this would have been foreseeable, but the absolute failure of the US’ Mideast policy and the EU’s energy one made this stunning reversal possible in under a year. Turkey is still anticipated to have some privileged relations with the West, but the entire nature of the relationship has forever changed as the country officially engages in pragmatic multipolarity.

Turkey’s leadership made a major move by sealing such a colossal deal with Russia in such a sensitive political environment, and the old friendship can never be restored…The reverberations are truly global.”  (“Cold Turkey: Ankara Buckles Against Western Pressure, Turns to Russia”, Sputnik News)

Korybko seems to be alone in grasping the magnitude of what happened in Ankara on Monday, although –judging by the Obama administration’s silence on the topic–the gravity of the transaction is beginning to sink in.  Grandmaster Vlad’s latest move has caught US powerbrokers flat-footed and left them speechless. This is a scenario that no one had anticipated and, if it’s not handled correctly, could turn out to be a real nightmare. Here’s more on Monday’s press conference from Russia Today:

“Putin said that Russia is ready to build a new pipeline to meet Turkey’s growing gas demand, which may include a special hub on the Turkish-Greek border for customers in southern Europe.

For now, the supply of Russian gas to Turkey will be raised by 3 billion cubic meters via the already operating Blue Stream pipeline…Moscow will also reduce the gas price for Turkish customers by 6 percent from January 1, 2015, Putin said.

“We are ready to further reduce gas prices along with the implementation of our joint large-scale projects,” he added.”  (“Putin: Russia forced to withdraw from S. Stream project due to EU stance”, RT)

How can this happen? How can Putin waltz into Ankara, scribble his name on a few sheets of paper, and abscond with a key US ally right under Washington’s nose?  Isn’t there anyone at the White House who’s smart enough to anticipate a scenario like this or have they all been replaced with warmongering ding-dongs like Susan Rice and Samantha Powers?

The Obama administration has been doing everything in its power to control the flow of gas from east to west and to undermine Russian-EU economic integration. Now it looks like the nimble Putin has found a way to avoid the economic sanctions, (Turkey rejected sanctions on Russia)  avoid US coercion and blackmail (which was used on Bulgaria, Hungary, and Serbia), and avoid Washington’s endless belligerence and hostility, and achieve his objectives at the same time.   But– then again– isn’t that what you’d expect from a level-headed martial arts pro like Putin?

“I won’t beat you,” says Bad Vlad.  “I’ll let you to beat yourself.”

And, so he has. Just ask the befuddled Obama who has yet to prevail in any of his encounters with Putin.

But why the silence? Why hasn’t the White House issued a statement about the big Russian-Turkey gas deal that everyone’s talking about?

I’ll tell you why. It’s because they don’t know what the hell just hit them, that’s why. They were completely blindsided by the announcement and can’t quite figure out what it means for the issues that are on the very top of their foreign policy agenda, like the pivot to Asia, or the wars in Syria and Ukraine, or the much-ballyhooed gas pipeline from Qatar to the EU, that was supposed to transit– you guessed it– Turkey.  Is that plan still in the works or has the Putin-Erdogan alliance put the kibosh on that gem too?   Let’s face it, Putin has really knocked it out of the park this time. Team Obama is clearly out of its league and has no idea of what’s going on. If Turkey turns eastward and joins the growing Russian bloc, US policymakers are going to have to scrap the better part of their strategic plans for the coming century and go back to Square 1. What a headache.

There’s a good article in Wednesday’s New York Times that summarizes Washington’s ambivalence towards South Stream perfectly. Here’s an excerpt:

“Moscow has long presented the project, proposed in 2007, as making good business sense because it would provide a new route for Russian gas to reach Europe. Washington and Brussels have opposed the project on the grounds that it was a vehicle for cementing Russian influence over southern Europe and for bypassing Ukraine, whose price disputes with Gazprom twice interrupted supplies to Europe in recent years.”

Putin’s Surprise Call to Scrap South Stream Gas Pipeline Leaves Europe Reeling”, New York Times)

This has been the argument from the get-go, that selling gas to people in the EU somehow strengthens Putin’s maniacal grip on the continent. What a joke. Would you, dear reader, be willing turn off the heat, tear up your energy bill, and freeze to death in the dark to prove to your gas company that you’re not willing to capitulate to their tyrannical rule?

Of course not, because the idea is ridiculous. Just like blocking South Stream is ridiculous. Putin is selling gas, not tyranny.  He doesn’t want people clicking their heels and goosestepping to work. That’s just propaganda from the people in the oil industry who lost the competition for supplying fuel to the EU. Call it sour grapes if you want, because that’s what it is. Their pipeline failed, (Nabucco) and Putin’s won. End of story. It’s called capitalism. Deal with it.

And here’s another thing: The countries that South Stream would have served, do not have a back-up supplier to meet their growing gas needs. So by following Washington’s lead, they’ve basically shot themselves in the foot. Analysts figure that any replacement for Russian gas will probably be 30 percent more expensive then they would have paid Gazprom.

Hurrah for the US! Hurrah for stupidity!

The US has been determined to sabotage South Stream from the very beginning, mainly because Washington wants its corporations and banks to control the flow of gas to the EU market through privately-owned pipelines in Ukraine. That way they can rake in bigger profits for their moneybags shareholders. Without going into too much detail about the various methods the US has used to torpedo the project, there’s one story that’s worth a look. This is from Zero Hedge:

“…two months before the Ukraine government was overthrown the prime  minister of Bulgaria, Plamen Oresharski,  ordered a halt to work on the South Stream on the recommendation of the EU. The decision was announced after his talks with US senators.

“At this time there is a request from the European Commission, after which we’ve suspended the current works, I ordered it,” Oresharski told journalists after meeting with John McCain, Chris Murphy and Ron Johnson during their visit to Bulgaria on Sunday. “Further proceedings will be decided after additional consultations with Brussels.”

At the time McCain, commenting on the situation, said that “Bulgaria should solve the South Stream problems in collaboration with European colleagues,” adding that in the current situation they would want “less Russian involvement” in the project.

“America has decided that it wants to put itself in a position where it excludes anybody it doesn’t like from countries where it thinks it might have an interest, and there is no economic rationality in this at all,” (said)Ben Aris, editor of Business New Europe told RT.”  (“Europe Gives Bulgaria A Bank System Lifeline As Battle Over “South Stream” Pipeline Heats Up”, Zero Hedge)

Let me get this straight: Madman McCain strolls into town and immediately starts ordering people around telling them he wants  “less Russian involvement”, and that’s enough to bring South Stream to a screeching halt? Is that what you’re telling me?

Yep. Sure sounds like it.

Does that help you see what’s really going here? This isn’t about Putin. It’s about gas, and who’s going to profit from that gas, and in whose currency that gas will be denominated. That’s what it’s about. The rest of the nonsense about “Russian involvement” or terrorism or human rights or national sovereignty is just gibberish. The people who run this country (like McCain), don’t care about that kind of stuff.  What they care about is money; money and power. That’s it.

So what are they going to do now?  How are the big powerboys in Washington going to express their rage over this new threat created by Putin and Erdogan?

It doesn’t take a genius to figure that one out, after all, we’ve seen it a million times before.

They’re going to go after Erdogan hammer and tongs. That’s what they always do, isn’t it?

The only reason they haven’t started in already is because they’re getting their propaganda ducks in a row, which usually takes a day or two. But as soon as that’s taken care of, they’ll start dismantling old Recep one excruciating headline at a time. Erdogan is going to be the new Hitler and the greatest threat to humanity the world has ever seen.  You can bet on it.

Whistleblower Sibel Edmonds thinks that Washington has had-it-in for Erdogan a long time now, dating back to a  dust up he had with the CIA a few years back. In any event, she gives a pretty good account of what we can expect now that Erdogan is on Washington’s enemies list.  Here’s a clip from her post at Boiling Frogs:

“We all know what happens to those puppets when they end up in a rift with the CIA. Don’t we? The rift always brings expiration. Once a puppet is considered expired, then lo and behold, all of a sudden, the reversal branding and marketing begins: All old skeletons are dug out of the deep closets and leaked to the media. His previously overlooked human rights violations are looked at and scrutinized under a microscope. The terrorist card is brought into the equation. And the list goes on…

… All Empire-installed puppets and regimes must commit to the Empire’s commandments….Thou shall not violate the Imperial commandments. Because if you do, thou shall be disgraced, exposed, uninstalled, and may even be given death. All you have to do is look at the past century’s history. See what happens when an installed puppet gets too confident and inflicted with hubris, and ignores one or more commandments. This is when they are reborn as dictators, despots, torturers, and yes, terrorists. This is when their backyards get dug up to find a few grams of weapons of mass destruction.”…

No matter how we look at it Erdogan’s days are numbered … Anyone who ever dares to be this reckless will be punished and made an example for all other installed-puppets…”  (“Turkish PM Erdogan: The Speedy Transformation of an Imperial Puppet”, BFP)

So there it is. That’s what you can expect by the end of the week when the media starts their full-throttle demonizing of Erdogan, the man who dared to act independently and put the interests of his own people above those of the Washington mob bosses.  As anyone who’s followed US foreign policy for the last 60 years will tell you; that’s a big no-no.


Mike Whitney is a regular columnist for Veracity Voice

Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com

Defending Dollar Imperialism

December 6, 2014 by · Leave a Comment 

Ukraine War Driven by Gas-Dollar Link…

“The Fed’s ‘need’ to take on an even more active role as foreigners further slow the purchases of our paper is to put the pedal to the metal on the currency debasement race now being run in the developed world — a race which is speeding us all toward the end of the present currency regime.” Stephanie Pomboy, MacroMavens

“No matter what our Western counterparts tell us, we can see what’s going on. NATO is blatantly building up its forces in Eastern Europe, including the Black Sea and the Baltic Sea areas. Its operational and combat training activities are gaining in scale.” Russian President Vladimir Putin

If there was a way the United States could achieve its long-term strategic objectives and, at the same time, avoid a war with Russia, it would do so. Unfortunately, that is not an option, which is why there’s going to be a clash between the two nuclear-armed adversaries sometime in the near future.

Let me explain: The Obama administration is trying to rebalance US policy in a way that shifts the focus of attention from the Middle East to Asia, which is expected to be the fastest growing region in the coming century. This policy-change is called the “pivot” to Asia. In order to benefit from Asia’s surge of growth, the US plans to beef up its presence on the continent, expand its military bases, strengthen bilateral alliances and trade agreements, and assume the role of regional security kingpin. The not-so-secret purpose of the policy is China “containment”, that is, Washington wants to preserve its position as the world’s only superpower by controlling China’s explosive growth. (The US wants a weak, divided China that will do what it’s told.)

In order to achieve its goals in Asia, the US needs to push NATO further eastward, tighten its encirclement of Russia, and control the flow of oil and gas from east to west. These are the necessary preconditions for establishing US hegemonic rule over the continent. And this is why the Obama administration is so invested in Kiev’s blundering junta-government; it’s because Washington needs Poroshenko’s neo Nazi shock troops to draw Russia into a conflagration in Ukraine that will drain its resources, discredit Putin in the eyes of his EU trading partners, and create the pretext for deploying NATO to Russia’s western border.

The idea that Obama’s proxy army in Ukraine is defending the country’s sovereignty is pure bunkum. What’s going on below the surface is the US is trying to stave off irreversible economic decline and an ever-shrinking share of global GDP through military force. What we’re seeing in Ukraine today, is a 21st century version of the Great Game implemented by political fantasists and Koolaid drinkers who think they can turn the clock back to the post WW2 heyday of the US Empire when the world was America’s oyster. Thankfully, that period is over.

Keep in mind, the glorious US military has spent the last 13 years fighting sheep herders in flip-flops in Afghanistan in a conflict that, at best, could be characterized as a stalemate. And now the White House wants to take on Russia?

Can you appreciate the insanity of the policy?

This is why Secretary of Defense Chuck Hagel was sacked last week, because he wasn’t sufficiently eager to pursue this madcap policy of escalating the wars in Afghanistan, Iraq, Syria and Ukraine. Everyone knows it’s true, the administration hasn’t even tried to deny it. They’d rather stick with foam-at-the-mouth buffoons, like Susan Rice and Samantha Powers, then a decorated veteran who has more credibility and intelligence in his little finger than Obama’s whole National Security team put together.

So now Obama is completely surrounded by rabid warmongering imbeciles, all of whom ascribe to the same fairytale that the US is going to dust-off Russia, remove Assad, redraw the map of the Middle East, control the flow of gas and oil from the ME to markets in the EU, and establish myriad beachheads across Asia where they can keep a tight grip on China’s growth.

Tell me, dear reader, doesn’t that strike you as a bit improbable?

But, of course, the Obama claque think it’s all within their grasp, because, well, because that’s what they’ve been told to think, and because that’s what the US has to do if it wants to maintain its exalted position as the world’s lone superpower when its economic significance in the world is steadily declining. You see, here’s the thing: The exceptional nation is becoming more unexceptional all the time, and that’s what has the political class worried, because they see the handwriting on the wall, and the writing says, “Enjoy it while it lasts, buddy, cuz you ain’t gonna be numero uno much longer.”

And the US has allies in this wacky crusade too, notably Israel and Saudi Arabia. The Saudis have been particularly helpful lately by flooding the market with oil to push down prices and crush the Russian economy. (On Friday, Benchmark crude oil prices plummeted to a four-year low, with Brent crude sinking to $69.11 a barrel.) The Obama administration is using the classic one-two punch of economic sanctions and plunging oil revenues to bully Moscow into withdrawing from Crimea so Washington can move its nuclear arsenal to within spitting distance of Moscow. Here’s a bit of background from the Guardian:

“Think about how the Obama administration sees the state of the world. It wants Tehran to come to heel over its nuclear programme. It wants Vladimir Putin to back off in eastern Ukraine. But after recent experiences in Iraq and Afghanistan, the White House has no desire to put American boots on the ground. Instead, with the help of its Saudi ally, Washington is trying to drive down the oil price by flooding an already weak market with crude. As the Russians and the Iranians are heavily dependent on oil exports, the assumption is that they will become easier to deal with.

John Kerry, the US secretary of state, allegedly struck a deal with King Abdullah in September under which the Saudis would sell crude at below the prevailing market price. That would help explain why the price has been falling at a time when, given the turmoil in Iraq and Syria caused by Islamic State, it would normally have been rising.” (Stakes are high as US plays the oil card against Iran and Russia, Larry Eliot, Guardian)

And here’s more from Salon’s Patrick L. Smith at Salon:

“Less than a week after the Minsk Protocol was signed, Kerry made a little-noted trip to Jeddah to see King Abdullah at his summer residence. When it was reported at all, this was put across as part of Kerry’s campaign to secure Arab support in the fight against the Islamic State.

Stop right there. That is not all there was to the visit, my trustworthy sources tell me. The other half of the visit had to do with Washington’s unabated desire to ruin the Russian economy. To do this, Kerry told the Saudis 1) to raise production and 2) to cut its crude price. Keep in mind these pertinent numbers: The Saudis produce a barrel of oil for less than $30 as break-even in the national budget; the Russians need $105.

Shortly after Kerry’s visit, the Saudis began increasing production, sure enough — by more than 100,000 barrels daily during the rest of September, more apparently to come…

Think about this. Winter is coming, there are serious production outages now in Iraq, Nigeria, Venezuela and Libya, other OPEC members are screaming for relief, and the Saudis make back-to-back moves certain to push falling prices still lower? You do the math, with Kerry’s unreported itinerary in mind, and to help you along I offer this from an extremely well-positioned source in the commodities markets: “There are very big hands pushing oil into global supply now,” this source wrote in an e-mail note the other day.” (What Really Happened in Beijing: Putin, Obama, Xi And The Back Story The Media Won’t Tell You, Patrick L. Smith, Salon)

The Obama team managed to persuade our good buddies the Saudis to flood the market with oil, drive down prices, and put the Russian economy into a nosedive. At the same time, the US has intensified its economic sanctions, done everything in its power to sabotage Gazprom’s South Stream pipeline (that would bypass Ukraine and deliver natural gas to Europe via a southern route), and cajole the Ukrainian parliament into auctioning off 49 percent of the leasing rights and underground storage facilities to privately-owned foreign corporations.

How do you like that? So the US has launched a full-blown economic war against Russia that’s been completely omitted in the western media. Are you surprised?

Washington is determined to block further Russo-EU economic integration in order to collapse the Russian economy and put foreign capital in control of regional energy distribution. It’s all about the pivot. The big money guys figure the US has to pivot to Asia to be a player in the next century. All of these unprovoked attacks on Moscow are based on that one lunatic strategy.

But aren’t people in the EU going to be angry when they can’t get the energy they need (at the prices they want) to run their businesses and heat their homes?

Washington doesn’t think so. Washington thinks its allies in the Middle East can meet the EU’s energy needs without any difficulty. Check out this clip from an article by analyst F. William Engdahl:

“…details are emerging of a new secret and quite stupid Saudi-US deal on Syria and the so-called IS. It involves oil and gas control of the entire region and the weakening of Russia and Iran by Saudi Arabian flooding the world market with cheap oil. ….

On September 11, US Secretary of State Kerry met Saudi King Abdullah at his palace on the Red Sea. The King invited former head of Saudi intelligence, Prince Bandar to attend. There a deal was hammered out which saw Saudi support for the Syrian airstrikes against ISIS on condition Washington backed the Saudis in toppling Assad, a firm ally of Russia and de facto of Iran and an obstacle to Saudi and UAE plans to control the emerging EU natural gas market and destroy Russia’s lucrative EU trade. A report in the Wall Street Journal noted there had been “months of behind-the-scenes work by the US and Arab leaders, who agreed on the need to cooperate against Islamic State, but not how or when.

The process gave the Saudis leverage to extract a fresh US commitment to beef up training for rebels fighting Mr. Assad, whose demise the Saudis still see as a top priority.”
(The Secret Stupid Saudi-US Deal on Syria, F. William Engdahl, BFP)

So the wars in Ukraine and Syria are not really separate conflicts at all. They’re both part of the same global resource war the US has been prosecuting for the last decade and a half. The US plans to cut off the flow of Russian gas and replace it with gas from Qatar which will flow through Syria and onto the EU market after Assad is toppled.

Here’s what’s going on: Syria’s troubles began shortly after it announced that it was going to be part of an “Islamic pipeline” that would transfer natural gas from the South Pars gas field off the coast of Iran across Iraq and Syria, eventually connecting to Greece and the lucrative EU market. According to author Dmitri Minin:

“A gas pipeline from Iran would be highly profitable for Syria. Europe would gain from it as well, but clearly someone in the West didn’t like it. The West’s gas-supplying allies in the Persian Gulf weren’t happy with it either, nor was would-be no. 1 gas transporter Turkey, as it would then be out of the game.” (The Geopolitics of Gas and the Syrian Crisis: Syrian “Opposition” Armed to Thwart Construction of Iran-Iraq-Syria Gas Pipeline, Dmitri Minin, Global Research)

Two months after Assad signed the deal with Iraq and Iran, the rebellion broke out in Syria. That’s quite a coincidence, don’t you think? Funny how frequently those kinds of things happen when foreign leaders don’t march to Washington’s tune.

Here’s more from Minin:

“Qatar is doing all it can to thwart the construction of the pipeline, including arming the opposition fighters in Syria, many of whom come from Saudi Arabia, Pakistan and Libya…

The Arabic newspaper Al-Akhbar cites information according to which there is a plan approved by the U.S. government to create a new pipeline for transporting gas from Qatar to Europe involving Turkey and Israel…

This new pipeline is to begin in Qatar, cross Saudi territory and then the territory of Jordan, thus bypassing Shiite Iraq, and reach Syria. Near Homs the pipeline is to branch in three directions: to Latakia, Tripoli in northern Lebanon, and Turkey. Homs, where there are also hydrocarbon reserves, is the project’s main crossroads, and it is not surprising… that the fiercest fighting is taking place. Here the fate of Syria is being decided. The parts of Syrian territory where detachments of rebels are operating with the support of the U.S., Qatar and Turkey, that is, the north, Homs and the environs of Damascus, coincide with the route that the pipeline is to follow to Turkey and Tripoli, Lebanon. A comparison of a map of armed hostilities and a map of the Qatar pipeline route indicates a link between armed activities and the desire to control these Syrian territories. Qatar’s allies are trying to accomplish three goals: to break Russia’s gas monopoly in Europe; to free Turkey from its dependence on Iranian gas; and to give Israel the chance to export its gas to Europe by land at less cost.”

How do you like that; another coincidence: “The fiercest fighting (in Syria) is taking place” where there’s massive “hydrocarbon reserves” and along the planned pipeline route.

So the conflict in Syria isn’t really about terrorism at all. It’s about natural gas, competing pipelines and access to markets in the EU. It’s about money and power. The whole ISIS-thing is a big hoax to conceal what’s really going on, which is a global war for resources, more blood for oil.

But how does the US benefit from all of this, after all, won’t the gas revenues go to Qatar and the transit countries rather than the US?

Yep, they sure will. But the gas will also be denominated in dollars which will shore up demand for USDs thus perpetuating the petrodollar recycling system which creates a vast market for US debt and which helps to keep US stocks and bonds in the nosebleed section. And that’s what this is all about, preserving dollar supremacy by forcing nations to hold excessive amounts of USDs to use in their energy transactions and to service their dollar-denominated debts.

As long as Washington can control the world’s energy supplies and force the world to trade in dollars, it can spend well in excess of what it produces and not be held to account. It’s like having a credit card you never have to pay off.

That’s a racket Uncle Sam is prepared to defend with everything he’s got, even nukes.


Mike Whitney is a regular columnist for Veracity Voice

Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com

Chinese And Japanese Deflationary Economies

November 29, 2014 by · Leave a Comment 

The global economy has just hit the wall. Do not underestimate the significance of the Asian downturn. Japan saw a dramatic rebirth after WWII and China was transformed into an industrial powerhouse from the “Free Trade” debacle. Now that the Central Bankers of the world are turning to Japan and China to keep the financial bubble from blowing, the focus pivots to the East. Pushing on a string is no easy task. Nervously, all eyes have to wonder if more debt will prevent the expected crash.

When the British financial press warns about Spreading deflation across East Asia threatens fresh debt crisis, people should listen.

“Deflation is becoming lodged in all the economic strongholds of East Asia. It is happening faster and going deeper than almost anybody expected just months ago, and is likely to find its way to Europe through currency warfare in short order.

China is in effect strapped to the rocketing dollar through its quasi-peg, increasingly a torture machine. George Magnus from UBS says this cannot continue. “What is happening in the property market is the tip of the iceberg for the whole economy. China will have to resort to monetary reflation over the winter, and I think this will include a lower yuan. We are heading into a currency war,” he said.”

The Economist provides the establishment viewpoint of the latest strategy in Deflation, deflated.

“WHEN people think of a large Asian country on the brink of deflation, they probably have Japan in mind. But China, the biggest of them all, is now skirting close to outright falls in prices across a wide swathe of the economy. Producer prices have been declining for nearly three years and consumer price inflation is mired at its lowest level since 2010.

Deflation is rightly feared by central bankers around the world as a most destructive economic force, making debts more expensive in real terms and leading to a vicious cycle of contraction as consumers delay purchases and companies put off investments. Yet the Chinese central bank has been remarkably laid-back about the downward lilt in prices. The most obvious tool in its kit to arrest the slide would be to cut interest rates, but it has not done so since July 2012; the benchmark one-year lending rate remains lofty at 6%. What explains the central bank’s calm in the face of falling prices, and is it making a big mistake?”

This last assessment demonstrates that when the shift in direction was announced, the financial community jumped on the bandwagon to In Change of Strategy, China Cuts Interest Rate.

“China finally admitted it has a growth problem — and that is a big step to getting the global economy back on track.

In cutting rates, China joins the parade of global policy makers who are stepping up their stimulus efforts to support growth. They are filling a void left by the United States Federal Reserve, which just ended a six-year bond-buying campaign that has kept borrowing costs low and has encouraged spending worldwide.”

The admission that a massive infusion to recapitalize the international system requires a new source to finance the retracting economies is significant. It seems that a tag team effort between China and Japan will hit the banking houses from different directions.

Japan Fires Another Shot in Global Currency War is the analysis from the Wall Street Journal.

“The Bank of Japan 8301.TO -1.63%’s surprise move to increase its asset purchases has sent the yen plummeting, with the dollar passing through ¥110 Friday to trade at highs not seen in six years. This is the mechanism through which Japan will try to restore inflation to its perennially stagnating economy. The BOJ describes its actions in terms of boosting domestic growth and pricing power, but the real way it works is to export deflation to the rest of the world – it has been doing this ever since the yen began an 30% decline versus the dollar once “Abenomics” stimulus measures were first floated in the fall of 2012.”

Japan will play the role of the QE Federal Reserve policy and the Chinese will finally slash their interest rates. Such moves are not taken because the global economies are prospering. Looking for actual growth is like Waiting for Godot.

The mystery that faces all economies is when does deflation become impervious to further stimulus? How many more times can the deficits, imbalances and shortfalls be papered or rolled over before a depression ensues.

Japan is already the poster child for negative growth and with the irrational expenditures that China has spent on ghost cities, their reported growth rates are about as valid as a stock buy recommendation from a Wall Street firm that is shorting their own portfolio.

Looking to the orient to pull the world out of a lethargic corporatist spiral is problematic at best. China slowed growth now reported at 7.3 percent is seen as setting the stage that fuels debt and property bubbles. Yet the balance of trade surpluses that China continues to build up against American consumption from their exports has never benefited economic conditions in the United States.

The Dollar Collapse site asks: Most of the World Panics — Is the US Next?

  • Will stepped-up debt monetization and interest rate reductions succeed where the past batch failed?
  • Can the US remain aloof from the carnage taking place all around it?

As the Asian economies suffer their own version of contraction on the road to a meltdown, who believes that the transnational corporations that have plotted to off shore their production for decades, will ever reverse their strategy and start returning manufacturing back in the US?

Who will buy the ever increasing US Treasury debt if China unwinds? Of course the Federal Reserve will ratchet up and even bigger QE infusion that will result with more zeros to the national debt.

The most effective solution for America is establishing a tax reform that encourages a domestic renaissance and setting tariffs at levels that will reverse the systemic balance of payments deficits. The worldwide deflation has commenced, so start thinking local and not global.


Sartre is the publisher, editor, and writer for Breaking All The Rules. He can be reached at: BATR

Sartre is a regular columnist for Veracity Voice

Obama’s Amnesty

November 27, 2014 by · 1 Comment 

President Barack Obama’s predecessors have taken executive action on immigration, but no previous president has acted on such grand scale or justified his move by prior executive action instead of a statute. In 1987 and 1990 Reagan and George H.W. Bush were acting with the support of Congress, rather than in defiance of its leaders. They used prosecutorial discretion to shield specific small groups of people from deportation (e.g. young children of recently legalized immigrants) in line with the amnesty law which Congress had already passed.

By contrast, Obama is using prosecutorial discretion to adopt a comprehensive policy of non-enforcement of the duly enacted immigration law. His audacity is breathtaking: he acts on the assumption that he can pick and choose which laws to enforce, in open violation of Article II Section 3 (the President “shall take Care that the Laws be faithfully executed”).

In the fullness of time Obama’s de facto amnesty will apply to all twenty-odd million illegal aliens – not to mention additional legions of new illegals who will be encouraged to cross the border by the increased likelihood that they will never be deported. The President’s attitude to the immigration crisis was evident in his claim that he has “seen the heartbreak and anxiety of children whose mothers might be taken away from them just because they didn’t have the right papers.” In Obama’s world, merely not having “the right papers” is a trifling matter, an issue of excessive bureaucratic pedantry which can be corrected by executive fiat.

Long-term effects of Obama’s amnesty will be catastrophic, not only in the legal and constitutional sphere. Millions of newly legalized workers will join the mainstream labor market, thus depressing wages and employment prospects for less-educated Americans. The U.S. population will increase from 320 million today to 440 million in 2050—a 120 million increase, according to the Census Bureau estimate. New immigrants and their descendants are expected to account for 80 million (or 67 percent) of that increase. Even those staggering figures are based on the assumption that immigration levels will remain static. Net immigration has been increasing for the past half-century, however, and there are no signs that the trend is changing. If it continues, the increase caused by immigration may well be higher than the projected 80 million—taking us easily to an America of half a billion people only decades from now.

Far from enhancing America’s “diversity,” the ongoing deluge threatens to impose a numbing Third-World sameness, to eradicate the remnants of this country’s identity, and to demolish what survives of her special character. On current form, not only will English-speaking Americans of European origin become a minority in their own country only decades from now, but they will share an increasingly overpopulated, polluted, lumpenproleterized, culturally unrecognizable country inhabited by tens of millions of aliens, including millions of actual or potential jihadists and their accomplices, aiders and abettors.

Whether this criminal idiocy can be stopped is now open to doubt. Obama and the cultural-Marxist ruling class see self-annihilation of the American nation with a historical memory and a cultural identity as the key to their revolutionary project. With last Thursday’s announcement Obama has made a major new step in that direction.


Srdja (Serge) Trifkovic, author, historian, foreign affairs analyst, and foreign affairs editor of “Chronicles.” He has a BA (Hon) in international relations from the University of Sussex (UK), a BA in political science from the University of Zagreb (Croatia), and a PhD in history from the University of Southampton (UK).

www.trifkovic.mysite.com

Dr. Srdja Trifkovic is a regular columnist for Veracity Voice

Trotsky At The IMF

November 27, 2014 by · Leave a Comment 

Does the Name “Strauss-Kahn” Ring a Bell?

The International Monetary Fund has finally admitted that it was wrong to recommend austerity as early as it did in 2010-2011. The IMF now agrees that it should have waited until the US and EU economies were on a sustainable growth-path before advising them to trim their budget deficits and reduce public spending.  According to a report issued by the IMF’s research division, the Independent Evaluation Office (IEO):  “IMF advocacy of fiscal consolidation proved to be premature for major advanced economies, as growth projections turned out to be optimistic…This policy mix was less than fully effective in promoting recovery and exacerbated adverse spillovers.”

Now there’s an understatement.

What’s so disingenuous about the IMF’s apology,  is that the bank knew exactly what the effects of its policy would be, but stuck with its recommendations to reward its constituents.  That’s what really happened. The only reason it’s trying to distance itself from those decisions now, is to make the public think it was all  just a big mistake.

But it wasn’t a mistake. It was deliberate and here’s the chart that proves it:


(Democrats Reap What They Sowed, Rob Urie, CounterPunch)

There it is, six years of policy in one lousy picture. And don’t kid yourself, the IMF played a critical role in this wealth-shifting fiasco. It’s job was to push for less public spending and deeper fiscal cuts while the Central Banks flooded the financial markets with liquidity (QE). The results are obvious, in fact, one of the Fed’s own officials, Andrew Huszar,  admitted that QE was a massive bailout for the rich.  “I’ve come to recognize the program for what it really is,” said Huszar who actually worked on the program, “the greatest backdoor Wall Street bailout of all time.”  There it is, straight from the horse’s mouth.

So now the IMF wants to throw a little dust in everyone’s eyes by making it look like it was a big goof-up by well-meaning but misguided bankers. And the media is helping them by its omissions.

Let me explain: Of the more than 455 articles on Google News covering the IMF’s mea culpa, not one piece refers to the man who was the IMF’s Managing Director at the time in question. Doesn’t that strike you as a bit odd?

Why would the media scrub any mention of Dominique Strauss-Kahn from its coverage? Could it be that (according to NPR):

“The IMF’s managing director wanted to give Greece, Portugal and Ireland the time needed to put their accounts in order, and he also argued for softening the austerity measures associated with the bailouts for those countries.

Greek economists say that under Strauss-Kahn’s leadership, the IMF was a counterbalance to the strict austerity policies favored by northern European leaders. In fact, according to the daily Le Monde, Strauss-Kahn is fond of calling those who argue for tighter austerity “fous furieux,” which roughly translates as “mad men.”

Strauss-Kahn’s view is that shock-therapy measures imposed on Greece and other European countries with sovereign debt crises will lead only to economic recession and severe social unrest.

Several commentators pointed out Monday that at a time of turmoil in the eurozone and division among European leaders, it was the IMF, under Strauss-Kahn’s leadership, that kept the eurozone’s rescue strategy on track.

The Financial Times said that the IMF’s single most important influence in the resolution of the eurozone crisis was political — amid a lack of political leadership, the paper said, the IMF filled a vacuum.
(IMF Chief’s Arrest Renews Euro Debt Crisis Fears, NPR)

Ah-ha! So Strauss-Kahn wasn’t on board with the IMF’s shock doctrine prescription. In fact, he was opposed to it.  So there were voices for sanity within the IMF, they just didn’t prevail in the policy debate.

But why would that be, after all, Strauss-Kahn was the IMF’s Managing Director, his views should have carried greater weight than anyone else’s, right?

Right. Except DSK got the ax for a sexual encounter at New York’s ritzy Sofitel Hotel. So the changes he had in mind never took place, which means that the distribution of wealth continued to flow upwards just like the moneybags constituents of the IMF had hoped for.

Funny how that works, isn’t it? Funny how it’s always the Elliot Spitzers, and the Scott Ritters, and the Dominique Strauss-Kahn’s who get nailed for their dalliances, but the big Wall Street guys never get caught.
Why is that?

The fact is, Strauss-Kahn was off the reservation and no longer supported the policies that the establishment elites who run the IMF wanted to see implemented.  They felt threatened by DSK’s Keynesian approach and wanted to get rid of him. That’s it in a nutshell.

Do you know why the bigwig plutocrats hated DSK?

It had nothing to do with his sexual acrobatics at the Sofitel Hotel. Nobody cares about that shite.   What they were worried about were his plans for the IMF which he laid out in a speech he gave at the Brookings Institution in April 2011, one month before he got the boot. The speech got very little attention at the time, but– for all practical purposes– it was DSK’s swan song.  And, I think you’ll see why.

The experience must have been a real shocker for the gaggle of tycoons and hangers-on who attend these typically-tedious gatherings. Instead of praise for “market discipline”, “labor flexibility” and “fiscal consolidation”, Strauss-Kahn delivered a rousing 30 minute tribute to leftist ideals and wealth-sharing sounding more like a young Leon Trotsky addressing the Forth International than a cold-hearted bureaucrat heading the world’s most notorious loan sharking operation. By the time the speech ended, I’m sure the knives were already being sharped for the wayward Managing Director. To put it bluntly, DSK’s goose was cooked. Here’s a clip from the speech that will help to explain why:

“…The outstanding faults of the economic society in which we live are its failure to provide for full employment and its arbitrary and inequitable distribution of wealth and incomes”…
Not everyone will agree with the entirety of this statement. But what we have learnt over time is that unemployment and inequality can undermine the very achievements of the market economy, by sowing the seeds of instability…

.. the IMF cannot be indifferent to distribution issues…

Today, we need a similar full force forward response in ensuring that we get the recovery we need. And that means not only a recovery that is sustainable and balanced among countries, but also one that brings employment and fair distribution…

But growth alone is not enough. We need direct labor market policies…

Let me talk briefly about the second lung of the social crisis—inequality…IMF research also shows that sustainable growth over time is associated with a more equal income distribution…

We need policies to reduce inequality, and to ensure a fairer distribution of opportunities and resources. Strong social safety nets combined with progressive taxation can dampen market-driven inequality. Investment in health and education is critical. Collective bargaining rights are important, especially in an environment of stagnating real wages. Social partnership is a useful framework, as it allows both the growth gains and adjustment pains to be shared fairly…

We have also supported a tax on financial activities (and) organized jointly with the ILO … to better understand the policies behind job-creating growth…

Ultimately, employment and equity are building blocks of economic stability and prosperity, of political stability and peace. This goes to the heart of the IMF’s mandate. It must be placed at the heart of the policy agenda. Thank you very much.”   (The Global Jobs Crisis— Sustaining the Recovery through Employment and Equitable Growth, Dominique Strauss-Kahn, Managing Director IMF, April 13, 2011)

Can you imagine the chorus of groans that must have emerged from the crowd when Strauss-Kahn made his pitch for “progressive taxation”, “collective bargaining rights”, “protecting social safety nets”, “direct labor market policies” and  “taxes on financial activities”? And how do you think the crowd reacted when he told them he’d settled on a more enlightened way to distribute the wealth they’d accumulated over a lifetime of insider trading, crooked backroom deals and shady business transactions?

Do you think they liked that idea or do you suppose they lunged for their blood pressure medication before scuttling pell-mell towards the exits?

Let’s face it; Strauss-Kahn was headed in a direction that wasn’t compatible with the interests of the cutthroats who run the IMF. That much is clear. Now whether these same guys concocted the goofy “honey trap” at the Sofitel Hotel, we may never know.  But what we do know is this: If you’re Managing Director of the IMF, you’d better not use your power to champion “distribution” or collective bargaining rights or you’re wind up like Strauss-Kahn, dragged off to the hoosegow in manacles wondering where the hell you went wrong.

DSK was probably done-in by the people who hated his guts. Now they want to polish-up their image by rewriting history.

And, you know, they’re rich enough to pull it off, too.


Mike Whitney is a regular columnist for Veracity Voice

Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com

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