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Gary Edwards

The Golden Calf of Increased Tax Rates | RedState - 0 views

www.redstate.com/...en-calf-of-increased-tax-rates

Don-Bongino Taxes Tax-&-Spend Property-Seizure-AND-Redistribution-of-Wealth

shared by Gary Edwards on 19 Nov 12 - No Cached
  • Economics and a degree of common sense also tells us that we will always be more cautious in spending our money than a third party will be.
  • Milton Friedman used this brief explanation to drive home the point. There are four ways to spend money.
  • You can spend your money on yourself, and when you do both the cost of the product and the quality matters.
  • ...7 more annotations...
  • Finally, the most inefficient method to spend money of the four is other people, spending other people’s money, on other people. Cost doesn’t matter because it is not your money and quality doesn’t matter because it is not your product or service either.
  • Other people can spend other people’s money on themselves, in this case cost doesn’t matter, as it is not your money, but quality does as you are buying the product or service for yourself.
  • You can spend your money on someone else, in this case cost matters but quality is not as important.
  • In the final case, I just described to you government spending. And, to be clear, government spending is
  • taxation, while deficit spending is future taxation plus interest. It cannot be any other way.
  • Finally, we are frequently rhetorically assaulted by the “fair share” moralists on the left.
  • The paradoxical truth is that the tax rates are too high today and tax revenues are too low and the soundest way to raise revenues in the long run is to cut rates now.
  • Gary Edwards on 19 Nov 12
     
    Good argument explaining the relationship between tax rates and tax receipts. excerpt: Economics and a degree of common sense also tells us that we will always be more cautious in spending our money than a third party will be. Milton Friedman used this brief explanation to drive home the point. There are four ways to spend money. You can spend your money on yourself, and when you do both the cost of the product and the quality matters. You can spend your money on someone else, in this case cost matters but quality is not as important. Other people can spend other people's money on themselves, in this case cost doesn't matter, as it is not your money, but quality does as you are buying the product or service for yourself. Finally, the most inefficient method to spend money of the four is other people, spending other people's money, on other people. Cost doesn't matter because it is not your money and quality doesn't matter because it is not your product or service either. In the final case, I just described to you government spending. And, to be clear, government spending is taxation, while deficit spending is future taxation plus interest. It cannot be any other way. Arguing that accumulating debt on your personal credit card is not going to require you to take money from your account in the future to pay the debt is foolish, therefore, why would you think that the national credit card would obey a different set of economic rules? Finally, we are frequently rhetorically assaulted by the "fair share" moralists on the left. ....................... This is an argument where they are correct on principle and completely devoid of substance regarding evidence...........
Paul Merrell

The coming collapse of Iran sanctions - Opinion - Al Jazeera English - 0 views

www.aljazeera.com/...201322584515426148.html

iran sanctions european union China WTO foreign policy blunders

shared by Paul Merrell on 27 Feb 13 - No Cached
  • Western policymakers and commentators wrongly assume that sanctions will force Iranian concessions in nuclear talks that resume this week in Kazakhstan - or perhaps even undermine the Islamic Republic's basic stability in advance of the next Iranian presidential election in June.  Besides exaggerating sanctions' impact on Iranian attitudes and decision-making, this argument ignores potentially fatal flaws in the US-led sanctions regime itself - flaws highlighted by ongoing developments in Europe and Asia, and that are likely to prompt the erosion, if not outright collapse of America's sanctions policy.       Virtually since the 1979 Iranian revolution, US administrations have imposed unilateral sanctions against the Islamic Republic. These measures, though, have not significantly damaged Iran's economy and have certainly not changed Iranian policies Washington doesn't like. 
  • Secondary sanctions are a legal and political house of cards. They almost certainly violate American commitments under the World Trade Organisation, which allows members to cut trade with states they deem national security threats but not to sanction other members over lawful business conducted in third countries. If challenged on the issue in the WTO's Dispute Resolution Mechanism, Washington would surely lose.  
  • Last year, the European Union - which for years had condemned America's prospective "extraterritorial" application of national trade law and warned it would go to the WTO's Dispute Resolution Mechanism if Washington ever sanctioned European firms over Iran-related business - finally subordinated its Iran policy to American preferences, banning Iranian oil and imposing close to a comprehensive economic embargo against the Islamic Republic.   In recent weeks, however, Europe's General Court overturned European sanctions against two of Iran's biggest banks, ruling that the EU never substantiated its claims that the banks provided "financial services for entities procuring on behalf of Iran's nuclear and ballistic missile programmes". 
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  • On the other side of the world, America is on a collision course with China over sanctions. In recent years, Beijing has tried to accommodate US concerns about Iran. It has not developed trade and investment positions there as rapidly as it might have, and has shifted some Iran-related transactional flows into renminbito to help the Obama administration avoid sanctioning Chinese banks (similarly, India now pays for some Iranian oil imports in rupees). Whether Beijing has really lowered its aggregate imports of Iranian oil is unclear - but it clearly reduces them when the administration is deciding about six-month sanctions waivers for countries buying Iranian crude.  
  • However, as Congress enacts additional layers of secondary sanctions, President Obama's room to manoeuver is being progressively reduced. Therein lies the looming policy train wreck.  
  • If, at congressional insistence, the administration later this year demands that China sharply cut Iranian oil imports and that Chinese banks stop virtually any Iran-related transactions, Beijing will say no. If Washington retreats, the deterrent effect of secondary sanctions will erode rapidly. Iran's oil exports are rising again, largely from Chinese demand.
  • Once it becomes evident Washington won't seriously impose secondary sanctions, growth in Iranian oil shipments to China and other non-Western economies (for example, India and South Korea) will accelerate. Likewise, non-Western powers are central to Iran's quest for alternatives to US-dominated mechanisms for conducting and settling international transactions - a project that will also gain momentum after Washington's bluff is called.   Conversely, if Washington sanctions major Chinese banks and energy companies, Beijing will respond - at least by taking America to the WTO's Dispute Resolution Mechanism (where China will win), perhaps by retaliating against US companies in China. 
  • Chinese policymakers are increasingly concerned Washington is reneging on its part of the core bargain that grounded Sino-American rapprochement in the 1970s - to accept China's relative economic and political rise and not try to secure a hegemonic position in Asia.   Beijing is already less willing to work in the Security Council on a new (even watered-down) sanctions resolution and more willing to resist US initiatives that, in its view, challenge Chinese interests (witness China's vetoes of three US-backed resolutions on Syria).  In this context, Chinese leaders will not accept American high-handedness on Iran sanctions. At this point, Beijing has more ways to impose costs on America for violations of international economic law that impinge on Chinese interests than Washington has levers to coerce China's compliance.   As America's sanctions policy unravels, President Obama will have to decide whether to stay on a path of open-ended hostility toward Iran that ultimately leads to another US-initiated war in the Middle East, or develop a very different vision for America's Middle East strategy - a vision emphasising genuine diplomacy with Tehran, rooted in American acceptance of the Islamic Republic as a legitimate political order representing legitimate national interests and aimed at fundamentally realigning US-Iranian relations.  
  • Paul Merrell on 27 Feb 13
     
    Keep in mind that Iran has the military power to close the Straits of Hormuz, thereby sending the West into an economic depression as the world's oil supply  suddenly contracts. 
Paul Merrell

Trump Prepares to Takeover Fed - 0 views

www.counterpunch.org/...trump-prepares-to-takeover-fed

banksters Fed Trump-administration

shared by Paul Merrell on 20 Nov 16 - No Cached
  • In Donald Trump’s first four years as president, he will not only choose three judges for the Supreme Court, he’ll also pick five of the seven members on the Fed Board of Governors. It would be impossible to overstate the effect this is going to have on the nation’s economic future. With both houses of Congress firmly in the GOP’s grip, we could see the most powerful central bank in the world transformed into a purely political institution that follows the diktats of one man. Critics may think that is a vast improvement over the present situation in which the Fed conceals its allegiance to the giant Wall Street investment banks behind a public relations cloud of “independence”, but the idea of one man controlling the price of the world’s reserve currency and, thus, the price of financial assets and commodities across the globe, is equally disturbing. Already we have seen how the Fed’s determination to enrich its constituents has resulted in one titanic asset-price bubble after the other. Imagine if that power was entrusted to just one individual who could be tempted to use that authority to shape economic events in a way that enhanced and perpetuated his own political power. Even so, after seven years of a policy-induced Depression that has increased inequality to levels not seen since the Gilded Age, we think it is high-time that the president use his power to choose the members who will bring the bank back under government control.
  • So, how will Trump’s populism shape his views on who should or should not be a member of the Fed? We don’t know, but we do know that monetary policy is going to change dramatically from the last eight years of unproductive experimentation because Trump has surrounded himself with industry leaders who ascribe to an entirely different philosophy than the one currently in practice. Check this out from monetary analyst Tommy Behnke: “Some of today’s most reasonable mainstream economic voices are included in (Trump’s) inner circle. These names include David Malpass of Encima Global, who co-signed a letter with Jim Grant opposing the Fed’s “inflationary” and “distortive” quantitative easing program; John Paulson of Paulson & Co., who made billions from shorting the housing market before the Great Recession; Andy Beal, a self-described “libertarian kind of guy” who blames the Fed for the credit crisis; and the Heritage Foundation’s Stephen Moore, who told CSIN in 2012 that he is a “very severe critic” of the Fed’s “incredibly easy-money policies of the past decade.” While none of Trump’s economic advisers are by any means Austrians, they are far more hawkish than most of Presidents Bush and Obama’s past economic advisers.” (Why President Trump Will Fumigate the Fed, Mises Institute)
  • Trump, who is no fan of the Fed’s bond buying program called QE, has admitted he thinks stocks are in a bubble suggesting that he will probably take a more conservative approach to monetary policy. Even so, that doesn’t change the fact he’s going to have to opportunity to personally select the FOMC’s ruling majority, which means that he’ll be in a position to demand their loyalty as a condition of their hiring. Does anyone seriously doubt that Trump would rather control the Fed himself than keep it in the clutches of the cutthroat Wall Street banks? There’s no doubt that the distributional effects of the Fed’s policies helped catapult Trump into the White House. Millions of working class Americans who are sick of the monetary “trickle down” policies and the job-eviscerating trade agreements found a way to express their frustration in the candidacy of Donald Trump. Their collective rage suddenly exploded at the ballotbox on November 8 pushing the real estate tycoon to a victory over opponent Clinton in what many are calling the political upset of the century. Trump tapped into that wellspring of anger and frustration by denouncing the “failed and corrupt political establishment” in which both Hillary Clinton and the Fed feature prominently. Now he’s going to take it to the next level by launching a surprise attack on the Fed which will leave Wall Street stripped of its power-agency and left to fend for itself. This is a blurb from the New York Times: “A core view of many Trump advisers is that the extended period of emergency policy settings has promoted a bubble in the stock market, depressed the incomes of savers, scared the public and encouraged capital misallocation,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics. “Right now, these are minority views on the F.O.M.C., but Trump appointees are likely to shift the needle.” (With Trump in Power, the Fed Gets Ready for a Reckoning, New York Times)
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  • They’re going to “shift the needle” alright, then they’re going to drive it through the serpent’s heart. The Fed has had every opportunity to show where its loyalties lie and it has sided with Wall Street every single time. There’s a reason why 95 percent of all income gains in the last eight years have gone to the one percent, while working people have struggled just to put food on the table. Just like there’s a reason why stocks have tripled in value in the last eight years while wages and incomes have stagnated and the economy has slowed to a crawl. It’s the policy, stupid. The Fed has created the conditions for a permanent Depression so it can provide infinite cheap money to its crooked reprobate friends on Wall Street. Now their little party is coming to an end. Boo fucking hoo.
Paul Merrell

American Greed: Trump's Economic Team Is A Who's Who Of What's Wrong - 0 views

www.mintpressnews.com/...219341

Auction 2016 Trump economic-team

shared by Paul Merrell on 12 Aug 16 - No Cached
  • Hedge funds are represented. So is fracking. And tobacco. And guns. And banking. And steel. And there’s the guy who mismanaged Chrysler before it was rescued by a government intervention.
  • Paul Merrell on 12 Aug 16
     
    A who's who piece on the Trump economic team. Mad Max: Fury Road as a presidential platform?
Gary Edwards

Here's how big the potential 2013 tax hikes would be « The Enterprise Blog - 1 views

blog.american.com/...ential-2013-tax-hikes-would-be

James-Pethokoukis Federal-Gestapo Charts economic-armageddon tax-hikes Obammunism

shared by Gary Edwards on 16 Apr 12 - No Cached
  • Gary Edwards on 16 Apr 12
     
    Stunning chart tracking from 1969 to 2013 the percentage of GDP the government seizes. The tax hikes coming in 2013 will seize over 3.5% of GDP. Previous high was in 1969, where the tax man seized 1.7%. Interesting look at the inverse relationship Government seizure of assets and productivity has with the nations economic growth and prosperity. The more the government takes, the less there is for the nation's citizens. Is that a radical economic insight? For the socialist, it's a connection they really don't want the people to make.
Gary Edwards

CARPE DIEM: Anti-Keynesian Supply Side Tax and Spending Cuts in Sweden, and the Finance... - 0 views

mjperry.blogspot.com/...esian-supply-side-tax-and.html

Sweden Reagan-supply-side-economics Reaganomics

shared by Gary Edwards on 09 May 12 - No Cached
  • Gary Edwards on 09 May 12
     
    Sweden's Finance Minister Anders Borg is proving that Krugman and all those Keynesian big time stimulous spenders are wrong.  Reagan supply-side economics works every time it's tried.  And Sweden is proving it every day.  Instead of borrowing to stimulate, Borg flattened and cut taxes while gutting unsustainable government welfare spending.  Put the productive resources in the hands of those who are productive, and magic happens.  Capitalism has a home in Sweden, of all places. excerpt: "When Europe's finance ministers meet for a group photo, it's easy to spot the rebel - Anders Borg (pictured above) has a ponytail and earring. What actually marks him out, though, is how he responded to the crash. While most countries in Europe borrowed massively, Borg did not. Since becoming Sweden's finance minister, his mission has been to pare back government. His 'stimulus' was a permanent tax cut. To critics, this was fiscal lunacy. Borg, on the other hand, thought lunacy meant repeating the economics of the 1970s and expecting a different result. Three years on, it's pretty clear who was right. "Look at Spain, Portugal or the UK, whose governments were arguing for large temporary stimulus," he says. "Well, we can see that very little of the stimulus went to the economy. But they are stuck with the debt." Tax-cutting Sweden, by contrast, had the fastest growth in Europe last year, when it also celebrated the abolition of its deficit. The recovery started just in time for the 2010 Swedish election, in which the Conservatives were re-elected for the first time in history.
Gary Edwards

EconoMonitor : EconoMonitor » Bailout Total: $29.616 Trillion Dollars - 0 views

www.economonitor.com/...-total-29-616-trillion-dollars

Banksters Federal-Reserve-Bankster-Cartel Levy-Economics-Institute James-Felkerson banksters

shared by Gary Edwards on 16 Dec 11 - No Cached
  • Gary Edwards on 16 Dec 11
     
    Good summary of the Levy Economics Intitute's study of the Federal Reserve Bankster cartel.  Focus on the traditional meaning of overnight lending, and what the Fed Bankster cartel is using it for.   $29,616 Trillion! excerpt: There is a fascinating new study coming out of the Levy Economics Institute of Bard College.  Its titled "$29,000,000,000,000: A Detailed Look at the Fed's Bail-out by Funding Facility and Recipient" by James Felkerson. The study looks at the lending, guarantees, facilities and spending of the Federal Reserve. The researchers took all of the individual transactions across all facilities created to deal with the crisis, to figure out how much the Fed committed as a response to the crisis. This includes direct lending, asset purchases and all other assistance. (It does not include indirect costs such as rising price of goods due to inflation, weak dollar, etc.) The net total? As of November 10, 2011, it was $29,616.4 billion dollars - (or 29 and a half trillion, if you prefer that nomenclature). Three facilities-CBLS, PDCF, and TAF- are responsible for the lion's share - 71.1% of all Federal Reserve assistance ($22,826.8 billion).
Gary Edwards

EconoMonitor : Great Leap Forward » BERNANKE'S OBFUSCATION CONTINUES: The Fed... - 0 views

www.economonitor.com/...illion-bail-out-of-wall-street

Banksters Federal-Reserve-Bankster-Cartel Levy-Economics-Institute banksters

shared by Gary Edwards on 16 Dec 11 - No Cached
  • Gary Edwards on 16 Dec 11
     
    Excellent summary of how deep the hole the Federal Reserve has dug for Americans.  Walks us from the 2008 crisis to the Levy Economics Institute $29.616 Trillion Bankster Bailout.  Incredibly well written commentary. excerpt: Bernanke argues we should look only at the lending at a peak instant of time. Think about it this way. A half dozen drunken sailors are at the bar, and the bartender refills their shot glasses with whiskey each time a drink is taken. At any instant, the bar-keep has committed only six ounces of booze. That is a useful measure of whiskey outstanding. But it is not useful for telling us how much the drunks drank. Bernanke would like us to believe that if the Fed newly lent a trillion bucks every day for 3 years to all our drunken bankers that we should total that as only a trillion greenbacks committed. Yes, that provides some useful information but it does not really measure the necessary intervention by the Fed into financial markets to save Wall Street. And that leads to the final way to measure the Fed's commitments to propping up our drunks on Wall Street: add up every single damned loan, guarantee and asset purchase the Fed made to benefit banks, banksters, real Housewives on Wall Street, fraudsters, and their cousins, aunts and uncles. This gives us the cumulative Fed commitments. The final important consideration is to separate "normal" Fed actions from the "extraordinary" or "emergency" interventions undertaken because of the crisis. That is easier than it sounds. After the crisis began, the Fed created a large alphabet soup of special facilities designed to deal with the crisis. We can thus take each facility and calculate the three measures of the Fed's commitments for each, then sum up for all the special facilities. And that is precisely what Nicola Matthews and James Felkerson have done. They are PhD students at the University of Missouri-Kansas City, working on a Ford Foundation grant under my direction, titl
Paul Merrell

Ukraine: One 'Regime Change' Too Many? | Consortiumnews - 0 views

consortiumnews.com/...ine-one-regime-change-too-many

war & peace U.S. Russia EU Ukraine neocons

shared by Paul Merrell on 03 Mar 14 - No Cached
  • Russia’s parliament has approved President Putin’s request for the use of force inside neighboring Ukraine, as the latest neocon-approved “regime change” spins out of control and threatens to inflict grave damage on international relations, ex-CIA analyst Ray McGovern explains. By Ray McGovern Is “regime change” in Ukraine the bridge too far for the neoconservative “regime changers” of Official Washington and their sophomoric “responsibility-to-protect” (R2P) allies in the Obama administration? Have they dangerously over-reached by pushing the putsch that removed duly-elected Ukrainian President Viktor Yanukovych? Russian President Vladimir Putin has given an unmistakable “yes” to those questions – in deeds, not words. His message is clear: “Back off our near-frontier!”
  • Unless Obama is completely bereft of advisers who know something about Russia, it should have been a “known-known” (pardon the Rumsfeldian mal mot) that the Russians would react this way to a putsch removing Yanukovich. It would have been a no-brainer that Russia would use military force, if necessary, to counter attempts to use economic enticement and subversive incitement to slide Ukraine into the orbit of the West and eventually NATO. This was all the more predictable in the case of Ukraine, where Putin – although the bête noire in corporate Western media – holds very high strategic cards geographically, militarily, economically and politically.
  • Putin has many other cards to play and time to play them. These include sitting back and doing nothing, cutting off Russia’s subsidies to Ukraine, making it ever more difficult for Yanukovich’s successors to cope with the harsh realities. And Moscow has ways to remind the rest of Europe of its dependence on Russian oil and gas.
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  • There is one huge difference between Prague in 1968 and Kiev 2014. The “Prague Spring” revolution led by Dubcek enjoyed such widespread spontaneous popular support that it was difficult for Russian leaders Leonid Brezhnev and Aleksey Kosygin to argue plausibly that it was spurred by subversion from the West. Not so 45-plus years later. In early February, as violent protests raged in the Ukrainian capital of Kiev and the White House professed neutrality, U.S. State Department officials were, in the words of NYU professor emeritus of Russian studies Stephen Cohen, “plotting a coup d’état against the elected president of Ukraine.” We know that thanks to neocon prima donna Victoria Nuland, now Assistant Secretary of State for European Affairs, who seemed intent on giving new dimension to the “cookie-pushing” role of U.S. diplomats. Recall the photo showing Nuland in a metaphor of over-reach, as she reached deep into a large plastic bag to give each anti-government demonstrator on the square a cookie before the putsch. More important, recall her amateurish, boorish use of an open telephone to plot regime change in Ukraine with a fellow neocon, U.S. Ambassador Geoffrey Pyatt. Crass U.S. interference in Ukrainian affairs can be seen (actually, better, heard) in an intercepted conversation posted on YouTube on Feb. 4.
  • There was a surreal quality to President Obama’s remarks, several hours after Russian (or pro-Russian) troops took control of key airports and other key installations in the Crimea, which is part of Ukraine, and home to a large Russian naval base and other key Russian military installations. Obama referred merely to “reports of military movements taken by the Russian Federation inside of Ukraine” and warned piously that “any violation of Ukraine’s sovereignty and territorial integrity would be deeply destabilizing.” That Obama chose the subjunctive mood – when the indicative was, well, indicated – will not be lost on the Russians. Here was Obama, in his typically lawyerly way, trying to square the circle, giving a sop to his administration’s neocon holdovers and R2P courtiers, with a Milquetoasty expression of support for the new-Nuland-approved government (citing Biden’s assurances to old whatshisname/yatshisname). While Obama stuck to the subjunctive tense, Prime Minister Yatsenyuk appealed to Russia to recall its forces and “stop provoking civil and military resistance in Ukraine.” Obama’s comments seemed almost designed to sound condescending – paternalistic, even – to the Russians. Already into his second paragraph of his scripted remarks, the President took a line larded with words likely to be regarded as a gratuitous insult by Moscow, post-putsch.
  • “We’ve made clear that they [Russian officials] can be part of an international community’s effort to support the stability of a united Ukraine going forward, which is not only in the interest of the people of Ukraine and the international community, but also in Russia’s interest.” By now, Russian President Vladimir Putin is accustomed to Obama, Secretary of State John Kerry, National Security Adviser Susan Rice, et al. telling the Kremlin where its interests lie, and I am sure he is appropriately grateful. Putin is likely to read more significance into these words of Obama: “The United States will stand with the international community in affirming that there will be costs for any military intervention in Ukraine … and we will continue to coordinate closely with our European allies.”
  • There are bound to be fissures in the international community and in the Western alliance on whether further provocation in Ukraine is advisable. Many countries have much to lose if Moscow uses its considerable economic leverage over natural gas supplies, for example. And, aspiring diplomat though she may be, Victoria Nuland presumably has not endeared herself to the EC by her expressed “Fuck the EC” attitude. Aside from the most servile allies of the U.S. there may be a growing caucus of Europeans who would like to return the compliment to Nuland. After all does anyone other than the most extreme neocon ideologue think that instigating a civil war on the border of nuclear-armed Russia is a good idea? Or that it makes sense to dump another economic basket case, which Ukraine surely is, on the EU’s doorstep while it’s still struggling to get its own economic house in order? Europe has other reasons to feel annoyed about the overreach of U.S. power and arrogance. The NSA spying revelations – that continue, just like the eavesdropping itself does – seem to have done some permanent damage to transatlantic relationships.
  • In any case, Obama presumably knows by now that he pleased no one on Friday by reading that flaccid statement on Ukraine. And, more generally, the sooner he realizes that – without doing dumb and costly things – he can placate neither the neocons nor the R2P folks (naively well meaning though the latter may be), the better for everyone. In sum, the Nulands of this world have bit off far more than they can chew; they need to be reined in before they cause even more dangerous harm. Broader issues than Ukraine are at stake. Like it or not, the United States can benefit from a cooperative relationship with Putin’s Russia – the kind of relationship that caused Putin to see merit last summer in pulling Obama’s chestnuts out of the fire on Syria, for example, and in helping address thorny issues with Iran.
  • Ray McGovern works with Tell the Word, a publishing arm of the ecumenical Church of the Saviour in inner-city Washington. His academic degrees are in Russian and he was an analyst of Russian foreign policy for the first decade of his 27-year career with the CIA.  He is now on the Steering Group of Veteran Intelligence Professionals for Sanity (VIPS).
  • Paul Merrell on 03 Mar 14
     
    Former CIA Russian analyst Ray McGovern thinks the neocons bit off more than they can chew in the Ukraine. I hope they receive the blowback they so deeply deservie.
Paul Merrell

N.S.A. Spied on Allies, Aid Groups and Businesses - NYTimes.com - 0 views

www.nytimes.com/...groups-and-business-elite.html

surveillance state NSA NSA-targets

shared by Paul Merrell on 21 Dec 13 - No Cached
  • Secret documents reveal more than 1,000 targets of American and British surveillance in recent years, including the office of an Israeli prime minister, heads of international aid organizations, foreign energy companies and a European Union official involved in antitrust battles with American technology businesses.
  • While the names of some political and diplomatic leaders have previously emerged as targets, the newly disclosed intelligence documents provide a much fuller portrait of the spies’ sweeping interests in more than 60 countries. Britain’s Government Communications Headquarters, working closely with the National Security Agency, monitored the communications of senior European Union officials, foreign leaders including African heads of state and sometimes their family members, directors of United Nations and other relief programs, and officials overseeing oil and finance ministries, according to the documents. In addition to Israel, some targets involved close allies like France and Germany, where tensions have already erupted over recent revelations about spying by the N.S.A.
  • Details of the surveillance are described in documents from the N.S.A. and Britain’s eavesdropping agency, known as GCHQ, dating from 2008 to 2011. The target lists appear in a set of GCHQ reports that sometimes identify which agency requested the surveillance, but more often do not. The documents were leaked by the former N.S.A. contractor Edward J. Snowden and shared by The New York Times, The Guardian and Der Spiegel. The reports are spare, technical bulletins produced as the spies, typically working out of British intelligence sites, systematically tapped one international communications link after another, focusing especially on satellite transmissions. The value of each link is gauged, in part, by the number of surveillance targets found to be using it for emails, text messages or phone calls. More than 1,000 targets, which also include people suspected of being terrorists or militants, are in the reports. It is unclear what the eavesdroppers gleaned. The documents include a few fragmentary transcripts of conversations and messages, but otherwise contain only hints that further information was available elsewhere, possibly in a larger database.
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  • Ms. Hansen, the spokeswoman for the European Commission, said that it was already engaged in talks with the United States that were “needed to restore trust and confidence in the trans-Atlantic relationship.” She added that “the commission will raise these new allegations with U.S. and U.K. authorities.”
  • Also appearing on the surveillance lists is Joaquín Almunia, vice president of the European Commission, which, among other powers, has oversight of antitrust issues in Europe. The commission has broad authority over local and foreign companies, and it has punished a number of American companies, including Microsoft and Intel, with heavy fines for hampering fair competition. The reports say that spies intercepted Mr. Almunia’s communications in 2008 and 2009. Mr. Almunia, a Spaniard, assumed direct authority over the commission’s antitrust office in 2010. He has been involved in a three-year standoff with Google over how the company runs its search engine. Competitors of the online giant had complained that it was prioritizing its own search results and using content like travel reviews and ratings from other websites without permission. While pushing for a settlement with Google, Mr. Almunia has warned that the company could face large fines if it does not cooperate.
  • Some condemned the surveillance on Friday as unjustified and improper. “This is not the type of behavior that we expect from strategic partners,” Pia Ahrenkilde Hansen, a spokeswoman for the European Commission, said on the latest revelations of American and British spying in Europe. Some of the surveillance relates to issues that are being scrutinized by President Obama and a panel he appointed in Washington that on Wednesday recommended tighter limits on the N.S.A., particularly on spying of foreign leaders, especially allies.
  • “We do not use our foreign intelligence capabilities to steal the trade secrets of foreign companies on behalf of — or give intelligence we collect to — U.S. companies to enhance their international competitiveness or increase their bottom line,” said Vanee Vines, an N.S.A. spokeswoman. But she added that some economic spying was justified by national security needs. “The intelligence community’s efforts to understand economic systems and policies, and monitor anomalous economic activities, are critical to providing policy makers with the information they need to make informed decisions that are in the best interest of our national security,” Ms. Vines said.
  • The surveillance reports show American and British spies’ deep appetite for information. The French companies Total, the oil and gas giant, and Thales, an electronics, logistics and transportation outfit, appear as targets, as do a French ambassador, an “Estonian Skype security team” and the German Embassy in Rwanda.
  • Multiple United Nations Missions in Geneva are listed as targets, including Unicef and the United Nations Institute for Disarmament Research. So is Médecins du Monde, a medical relief organization that goes into war-ravaged areas. Leigh Daynes, an executive director of the organization in Britain, responded to news about the surveillance by saying: “There is absolutely no reason for our operations to be secretly monitored.” More obvious intelligence targets are also listed, though in smaller numbers, including people identified as “Israeli grey arms dealer,” “Taleban ministry of refugee affairs” and “various entities in Beijing.” Some of those included are described as possible members of Al Qaeda, and as suspected extremists or jihadists.
  • While few if any American citizens appear to be named in the documents, they make clear that some of the intercepted communications either began or ended in the United States and that N.S.A. facilities carried out interceptions around the world in collaboration with their British partners. Some of the interceptions appear to have been made at the Sugar Grove, W.Va., listening post run by the N.S.A. and code-named Timberline, and some are explicitly tied to N.S.A. target lists in the reports.
  • Strengthening the likelihood that full transcripts were taken during the intercepts is the case of Mohamed Ibn Chambas, an official of the Economic Community of West African States, known as Ecowas, a regional initiative of 15 countries that promotes economic and industrial activity. Whether intentionally or through some oversight, when Mr. Chambas’s communications were intercepted in August 2009, dozens of his complete text messages were copied into one of the reports.
  • Paul Merrell on 21 Dec 13
     
    No mention of any "terrorist" targets. Could it be that Snowden and Greenwald are right, that the surveillance is not about terrorism at all? Surely our nation's leaders would not lie to us about that. Right. The Politics of Fear.
Paul Merrell

Putin Advisor Proposes "Anti-Dollar Alliance" To Halt US Aggression Abroad | Zero Hedge - 0 views

www.zerohedge.com/...nce-halt-us-foreign-aggression

war & peace Ukraine Russia U.S. EU economic-warfare anti-dollar-alliance banksters

shared by Paul Merrell on 20 Jun 14 - No Cached
  • It has been a while since both Ukraine, and the ongoing Russian response to western sanctions (which set off the great Eurasian axis in motion, pushing China and Russia close together, and accelerating the "Holy Grail" gas deal between the two countries) have made headlines. It is still not clear just why the western media dropped Ukraine coverage like a hot potato, especially since the civil war in Ukraine's Donbas continues to rage and claim dozens of casualties on both sides. Perhaps the audience has simply gotten tired of hearing about mixed chess/checkers game between Putin vs Obama, and instead has reverted to reading the propaganda surrounding just as deadly events in the third war of Iraq in as many decades. However, "out of sight" may be just what Russia's political elite wants. In fact, as VoR's  Valentin Mândr??escu reports, while the great US spin and distraction machine is focused elsewhere, Russia is already preparing for the next steps. Which brings us to Putin advisor Sergey Glazyev, the same person who in early March was the first to suggest Russia dump US bonds and abandon the dollar in retaliation to US sanctions, a strategy which worked because even as the Kremlin has retained control over Crimea, western sanctions have magically halted (and not only that, but as the Russian central bank just reported, the country's 2014 current account surplus may be as high as $35 billion, up from $33 billion in 2013, and a far cry from some fabricated "$200+ billion" in Russian capital outflows which Mario Draghi was warning about recently). Glazyev was also the person instrumental in pushing the Kremlin to approach China and force the nat gas deal with Beijing which took place not necessarily at the most beneficial terms for Russia.
  • It is this same Glazyev who published an article in Russian Argumenty Nedeli, in which he outlined a plan for "undermining the economic strength of the US" in order to force Washington to stop the civil war in Ukraine. Glazyev believes that the only way of making the US give up its plans on starting a new cold war is to crash the dollar system. As summarized by VoR, in his article, published by Argumenty Nedeli, Putin's economic aide and the mastermind behind the Eurasian Economic Union, argues that Washington is trying to provoke a Russian military intervention in Ukraine, using the junta in Kiev as bait. If fulfilled, the plan will give Washington a number of important benefits. Firstly, it will allow the US to introduce new sanctions against Russia, writing off Moscow's portfolio of US Treasury bills. More important is that a new wave of sanctions will create a situation in which Russian companies won't be able to service their debts to European banks. According to Glazyev, the so-called "third phase" of sanctions against Russia will be a tremendous cost for the European Union. The total estimated losses will be higher than 1 trillion euros. Such losses will severely hurt the European economy, making the US the sole "safe haven" in the world. Harsh sanctions against Russia will also displace Gazprom from the European energy market, leaving it wide open for the much more expensive LNG from the US.
  • Co-opting European countries in a new arms race and military operations against Russia will increase American political influence in Europe and will help the US force the European Union to accept the American version of the Transatlantic Trade and Investment Partnership, a trade agreement that will basically transform the EU into a big economic colony of the US. Glazyev believes that igniting a new war in Europe will only bring benefits for America and only problems for the European Union. Washington has repeatedly used global and regional wars for the benefit of  the American economy and now the White House is trying to use the civil war in Ukraine as a pretext to repeat the old trick. Glazyev's set of countermeasures specifically targets the core strength of the US war machine, i.e. the Fed's printing press. Putin's advisor proposes the creation of a "broad anti-dollar alliance" of countries willing and able to drop the dollar from their international trade. Members of the alliance would also refrain from keeping the currency reserves in dollar-denominated instruments. Glazyev advocates treating positions in dollar-denominated instruments like holdings of junk securities and believes that regulators should require full collateralization of such holdings. An anti-dollar coalition would be the first step for the creation of an anti-war coalition that can help stop the US' aggression.
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  • Unsurprisingly, Sergey Glazyev believes that the main role in the creation of such a political coalition is to be played by the European business community because America's attempts to ignite a war in Europe and a cold war against Russia are threatening the interests of big European business. Judging by the recent efforts to stop the sanctions against Russia, made by the German, French, Italian and Austrian business leaders, Putin's aide is right in his assessment. Somewhat surprisingly for Washington, the war for Ukraine may soon become the war for Europe's independence from the US and a war against the dollar.
  • Paul Merrell on 20 Jun 14
     
    Russia takes aim at the Fed's printing press with a U.S. dollar boycott to end the war in Ukraine. There are a lot of incentives for EU investors to join the boycott. Interesting idea; I'll need to think about this.  
Gary Edwards

Bankster Roubini Attacks Austrian Economists : EconomicPolicyJournal.com: - 1 views

www.economicpolicyjournal.com/...tacks-austrian-economists.html

Banksters IMF-leg-breakers Austrian-Economics

shared by Gary Edwards on 01 Oct 11 - No Cached
  • Austrians view the IMF etc. as bankster enforcers, who exist for one reason and one reason only, to ensure that the banksters are paid. Austrians view the current increased taxes, as part of austerity programs in PIIGS countries, with horror, and as the state taking by force from the people and handing the funds to the banksters.
  • Rather than banksters getting paid, Austrians would rather see the the PIIGS countries go into bankruptcy, default on their debt and free the people.
  • Treasury default is the Austrian solution, not phony "austerity" programs of tax reform, aka tax increases, and government programs that are "paid for" by shuffling imaginary cuts in to later years.
  • ...2 more annotations...
  • The same view holds with regard to the Austrian position on US Treasury debt.
  • Austrians aren't in favor the current size of government, anywhere. It's not about austerity, but about eliminating the government money grab on behalf of banksters.
  • Gary Edwards on 01 Oct 11
     
    Cut to the chase explanation of Austrian economics:  Banksters and their IMF collection arm want to roll over the sovereign debt of EU nations (PIIGS), subsidized by tax paying citizens.  The Banksters want the Sovereign debt of a few nations "nationalized" so that the loses are shared by the entire EU - and taken off the Bankster books. The Austrian economics handbook says that these Sovereign debters should go into default immediately, and declare bankruptcy.  The Banksters should take the hit for making the bad loans in the first place.  No bailouts. 75% of German tax payers support the Austrian plan!
Gary Edwards

The PJ Tatler » Still the Best Political-Economic Video Ever: Keynes vs. Hayek - 0 views

pajamasmedia.com/...-political-economic-video-ever

Keynes-vs-Hayek economics-video pj-tattler pajamas-media socilaism-vs-Constitutional-capitalism

shared by Gary Edwards on 07 Sep 11 - No Cached
  • Gary Edwards on 07 Sep 11
     
    Priceless!  Still the Best Political-Economic Video Ever, there are two  Keynes vs. Hayek rap videos.  The second one is the best!  On point, on target, clever and enjoyable.
Paul Merrell

The Ukraine Crisis and Vladimir Putin: A New Financial System Free from Wall Street and... - 0 views

www.globalresearch.ca/...5374785

war & peace banksters BRICS Russia new-world-order?

shared by Paul Merrell on 24 Mar 14 - No Cached
  • This is the big secret that now cannot be covered anymore. The governments of the US and the European countries are NOT independent entities, they are not sovereign. They do not have the will or even the ability to act on behalf of their people. They are controlled by powerful banking interests. They have been taken over by two financial centers that do not care for the real economy. They pursue only speculation and looting. In response on March 4th the economic adviser to Putin, Sergey Glazyev declared openly that if the financial vultures persisted, Russia would create on the spot an independent financial system which is separate from that of the US Dollar. Glazyev explained to the vampires: ‘We have wonderful economic and trade relations with our Southern and Eastern partners. We will find a way not just to eliminate our dependence on the US but also profit from these sanctions….If sanctions are applied against Russia’s state structures we will have to move into other currencies and create our own settlement system. We will be forced to recognize the impossibility of repayment of the loans that the US banks gave to Russian state structures. Indeed, sanctions are a double-edged weapon, and if the US chooses to freeze our assets, then our equities and liabilities in dollars will also be frozen…’
  • On March 18, the spokesperson for the Kremlin, Dmitry Peskov, stated that Russia would switch to new partners in case of economic sanctions being imposed by the European Union and the United States. He highlighted that the modern world isn’t unipolar and Russia has strong ties with other states as well, though Russia wants to remain in good relations with its Western partners, especially with the EU due to the volume of trade and joint projects. Those “new partners” are not really new since Russia has been closely interconnected with them for almost 13 years. This is all about the so-called BRICS organization, consisting of Brazil, Russia, India, China and South Africa. BRICS represents 42 percent of the world’s population and about a quarter of the world’s economy, which means that this bloc of states is an important global actor. The BRICS countries are like-minded in regard to supporting the principles of international law, the central role of the UN Security Council and the principles of the non-use of force in international relations; this is why they are so actively performing in the sphere of settling regional conflicts. However, the cooperation between Brazil, Russia, India, China and South Africa goes beyond political aspects and is also demonstrated by dynamic trade and multiple projects in different areas. Today, in total, there are more than 20 formats of cooperation within the BRICS which are being developing. For example, in February the member-states came to an agreement about 11 possible projects of scientific and technical cooperation, from aeronautics to bio- and nanotechnology.
  • This strategy is known as the Financial Nuclear Option. It could lead to the end of the predatory looting system of Wall Street. The ‘Southern and Eastern partners’ Glazyev is talking about are clearly the members of the BRICS, Brazil, Russia, India, China, South Africa, the sane part of the world economy, the future. And it is  exactly  what the official spokesman of the Kremlin, Dmitry Peskov indicated in an interview to the BBC: “Sanctions against Russia could be the final trigger that will force many countries to create a new independent financial system based on the real economy. The world is changing rapidly. How many civilizations grew and died in the course of history? Who will be able to resist the pressure of dying systems and indicate to the people the road toward the future?”  The possibility of a new financial system independent from the collapsing dollar empire, as consequence of anti Russia sanctions was also emphasized by an authoritative the Russian media including  RT. (See:http://rt.com/op-edge/russia-switches-to-brics-sanctions-357/) …Western sanctions might push Russia to deepen cooperation with BRICS states, in particular, to strengthen its ties with China, which will possibly turn out to be a big catastrophe for the US and the EU some time later.
  • ...1 more annotation...
  • In order to modernize the global economic system, at the center of which stand the US and the EU, the leaders of Brazil, Russia, India, China and South Africa have created the BRICS Stock Alliance and are creating their own development bank to finance large infrastructure projects. On the whole, despite fierce criticism of BRICS as an organization with no future, it is developing and increasing cooperation with its members and, in fact, BRICS is showing pretty good results. With the suspension of Russia’s participation in G8 and the strengthening of economic sanctions against Russia, specific industries may be targeted, including limits on imported commodities. While the West seeks to hit Russia hard, it is important to notice that Russia is ready to switch to other markets, including BRICS, with a view to expanding its trade.
Paul Merrell

The new European 'arc of instability' - RT Op-Edge - 0 views

rt.com/...3-putin-russia-sovereign-swift

war & peace economic-warfare Russia U.S.-foreign-policy Eurasia

shared by Paul Merrell on 06 Jan 15 - No Cached
  • The European Council on Foreign Relations and Berlin think-tank Friedrich Ebert Stiftung have just reached more or less the same conclusion. If the dangerous stand-off between the EU and Russia over Ukraine is not solved, the EU could face, up to 2030, a military build-up in eastern Europe; a new arms race with NATO as a protagonist; and a semi-permanent “zone of instability” from the Baltic to the Balkans and the Black Sea. What these two think-tanks don’t – and won’t – ever acknowledge is that a new European “arc of instability” – from the Baltic to the Black Sea, as myself and other independent analysts have stressed – is exactly what the Empire of Chaos and its weaponized arm – NATO – are working on to prevent closer Eurasia integration. By the way, the Pentagon excels in fabricating “arcs of instability.” The previous one was – and remains – massive, stretching from the Maghreb to Xinjiang in western China across the Middle East and Central Asia.
  • Moscow has totally identified the plot; Foreign Minister Sergey Lavrov, once again, has made it crystal clear, in detail. And crucially, some influential sectors in Germany also did, as in members of the cultural elite destroying the notion of a new war in Europe: “Not in our name.” The same applies to those that always preach more transatlantic cooperation, extol the US’s “defining” role in Germany, and effusively praise Germany as the most American country in Europe; that’s the case of the Frankfurter Allgemeine newspaper – which stands for the core of the political and economic establishment in Germany. It’s still in an embryonic stage, and has not yet made Chancellor Angela Merkel see the light; but a reverse reengineering of Atlanticist relations is already in progress in Germany.
  • Meanwhile, the proverbial group of extremist US senators, plus the notorious poodles/vassals of Britain and Poland, haven’t stopped lobbying to shut Russia off from SWIFT – just as they did with Iran. This would be nothing but yet another declaration of (economic) war – or the economic counterpoint to NATO hysteria. In fairness, a great deal of the EU – especially Germany – knows this is madness. Germany’s top financial paper Handelsblatt recently published a key interview with head of VTB-Bank Andrei Kostin, which has still not been translated into any major English-language paper.
  • ...3 more annotations...
  • Kostin went straight to the point: “Of course, there is a plan B [in the case of Russia being shut off from the SWIFT bank system], but in my personal opinion it would mean war – if this type of sanction will be introduced. America and Europe did that against Iran but with Iran at that time there were no diplomatic relations, only military containment...if Russian banks’ access to SWIFT will be prohibited, the US ambassador to Moscow should leave the same day. Diplomatic relations must be finished. Banking is the most vulnerable part of the Russian economy because the system is based so strongly on the dollar and the euro.” Next May, Russia’s Central Bank is planning to introduce an analogue to SWIFT – after key consultations with China. It’s always important to keep in mind that China set up a parallel SWIFT to do business with Iran under sanctions. But still there will be a window of four months for a lot of nasty things to happen after a Republican-controlled US Senate is empowered in January.
  • And then there’s the golden rule. Why is Russia buying so much gold? With the US dollar forced upward and gold downward, it makes total business sense to sell gas for inflated dollars and then buy cheap depressed gold; that’s what the Chinese call a “win-win.” And of course on both counts, the West loses. The Washington/Wall Street elites are fully aware that both Moscow and Beijing won’t accumulate US dollars anymore. As for the Masters of the Universe plutocrats who manipulate/control the value of the US dollar, a case can be made that one of their purposes is wrecking the US’s industrial base and the nation’s middle classes. Moscow, meanwhile, has adjusted to the new “instability.” The weak ruble has a positive effect – already stressed by President Putin – by forcing Russia to diversify its manufacturing and become more self-sufficient.
  • Of course, the problem remains for Russia to pay the foreign interest on its debt in US dollars. Moscow could always declare a moratorium in debt repayments. The ruble might go down even more. But as everyone from Lukoil to Rosneft converts more US dollars into rubles, that will drive the ruble back up. Not to mention that the ruble is shorted as it stands. The bottom line is that Moscow has learned yet another lesson for the immediate future: never become indebted to the West. What’s certain is that the Empire of Chaos won’t relent in its strategy of heating up the new arc of instability – inside Europe, across the economic/financial spectrum – and instrumentalizing its pre-fabricated New Iron Curtain from the Baltic to the Black Sea. The Kremlin seems to know exactly how high the stakes are. As The Saker told me in an email, “Putin is telling both the West and the Russian people that there is a long war in progress and that the Russian people have to morally be prepared to accept sacrifices for the survival of Russia. This is one more step in the 'coming-out' of what I call the ‘Eurasian Sovereignists’ in which the US [has] now openly declared as a Russophobic (Russia-hating and Russia-fearing) enemy, and the Europeans as a powerless colony. Military power is not directly a factor in this, the internal power balance between the pro-Western ‘Atlantic Integrationists’ and the ‘Eurasian Sovereignists’ is.” It’s all here – from the debacle of a regime (Bretton Woods) to the current, provoked crisis, all brilliantly explained by Mikhail Khazin. Russia is getting ready to rock. Is the West?
Paul Merrell

2015 Will Be All About Iran, China and Russia / Sputnik International - 0 views

sputniknews.com/...1016436434.html

war & peace economic-warfare U.S.-foreign-policy Russia China Eurasia

shared by Paul Merrell on 03 Jan 15 - No Cached
  • Fasten your seatbelts; 2015 will be a whirlwind pitting China, Russia and Iran against what I have described as the Empire of Chaos.
  • Considering that this swift move was conceived as a checkmate, Moscow’s defensive strategy was not that bad. On the key energy front, the problem remains the West’s – not Russia’s. If the EU does not buy what Gazprom has to offer, it will collapse. Moscow’s key mistake was to allow Russia's domestic industry to be financed by external, dollar-denominated debt. Talk about a monster debt trap  which can be easily manipulated by the West. The first step for Moscow should be to closely supervise its banks. Russian companies should borrow domestically and move to sell their assets abroad. Moscow should also consider implementing a system of currency controls so the basic interest rate can be brought down quickly. And don’t forget that Russia can always deploy a moratorium on debt and interest, affecting over $600 billion. That would shake the entire world's banking system to the core. Talk about an undisguised “message” forcing the US/EU economic warfare to dissolve.
  • Global oil prices are bound to remain low. All bets are off on whether a nuclear deal will be reached by this summer between Iran and the P5+1. If sanctions (actually economic war) against Iran remain and continue to seriously hurt its economy, Tehran’s reaction will be firm, and will include even more integration with Asia, not the West.
  • ...5 more annotations...
  • Now let’s take a look at Russian fundamentals. Russia’s government debt totals only 13.4% of its GDP. Its budget deficit in relation to GDP is only 0.5%.  If we assume a US GDP of $16.8 trillion (the figure for 2013), the US budget deficit totals 4% of GDP, versus 0.5% for Russia. The Fed is essentially a private corporation owned by regional US private banks, although it passes itself off as a state institution. US publicly held debt is equal to a whopping 74% of GDP in fiscal year 2014. Russia’s is only 13.4%. The declaration of economic war by the US and EU on Russia – via the run on the ruble and the oil derivative attack – was essentially a derivatives racket. Derivatives – in theory – may be multiplied to infinity. Derivative operators attacked both the ruble and oil prices in order to destroy the Russian economy. The problem is, the Russian economy is more soundly financed than America's.
  • So yes – it will be all about further moves towards the integration of Eurasia as the US is progressively squeezed out of Eurasia. We will see a complex geostrategic interplay progressively undermining the hegemony of the US dollar as a reserve currency and, most of all, the petrodollar. For all the immense challenges the Chinese face, all over Beijing it's easy to detect unmistakable signs of a self-assured, self-confident, fully emerged commercial superpower. President Xi Jinping and the current leadership will keep investing heavily in the urbanization drive and the fight against corruption, including at the highest levels of the Chinese Communist Party (CCP). Internationally, the Chinese will accelerate their overwhelming push for new 'Silk Roads' – both overland and maritime – which will underpin the long-term Chinese master strategy of unifying Eurasia with trade and commerce.
  • Russia does not need to import any raw materials. Russia can easily reverse-engineer virtually any imported technology if it needs to. Most of all, Russia can generate — from the sale of raw materials – enough credit in US dollars or euros. Russia's sale of its energy wealth — or sophisticated military gear — may decline. However, they will bring in the same amount of rubles — as the ruble has also declined.  Replacing imports with domestic Russian manufacturing makes total sense. There will be an inevitable “adjustment” phase – but that won’t take long. German car manufacturers, for instance, can no longer sell their cars in Russia due to the ruble's decline. This means they will have to relocate their factories to Russia. If they don’t, Asia – from South Korea to China — will blow them out of the market.
  • The EU's declaration of economic war against Russia makes no sense whatsoever. Russia controls, directly or indirectly, most of the oil and natural gas between Russia and China: roughly 25% of the world's supply. The Middle East is bound to remain a mess. Africa is unstable. The EU is doing everything it can to cut itself off from its most stable supply of hydrocarbons, prompting Moscow to redirect energy to China and the rest of Asia. What a gift for Beijing – as it minimizes the alarm about the US Navy playing with "containment" across the high seas.  Still, an unspoken axiom in Beijing is that the Chinese remain extremely worried about an Empire of Chaos losing more and more control, and dictating the stormy terms of the relationship between the EU and Russia. The bottom line is that Beijing would never allow itself to be in a position where the US could interfere with China's energy imports – as was the case with Japan in July 1941 when the US declared war by imposing an oil embargo, cutting off 92% of Japanese oil imports. Everyone knows a key plank of China’s spectacular surge in industrial power was the requirement for manufacturers to produce in China. If Russia did the same, its economy would be growing at a rate of over 5% per year in no time. It could grow even more if bank credit was tied only to productive investment.
  • Now imagine Russia and China jointly investing in a new gold, oil and natural resource-backed monetary union as a crucial alternative to the failed debt "democracy" model pushed by the Masters of the Universe on Wall Street, the Western central bank cartel, and neoliberal politicians. They would be showing the Global South that financing prosperity and improved standards of living by saddling future generations with debt was never meant to work in the first place. Until then, a storm will be threatening our very lives – today and tomorrow. The Masters of the Universe/Washington combo won’t give up their strategy to make Russia a pariah state cut off from trade, the transfer of funds, banking and Western credit markets and thus prone to regime change. Further on down the road, if all goes according to plan, their target will be (who else) China. And Beijing knows it. Meanwhile, expect a few bombshells to shake the EU to its foundations. Time may be running out – but for the EU, not Russia. Still, the overall trend won’t be altered; the Empire of Chaos is slowly but surely being squeezed out of Eurasia.
Paul Merrell

Moscow hosts the final Meeting before the Establishment of the EEU in January 2015 | ns... - 0 views

nsnbc.me/...ent-of-the-eeu-in-january-2015

war & peace economic-warfare BRICS EEC ASEAN MERCOSUR

shared by Paul Merrell on 22 Dec 14 - No Cached
  • The Supreme Eurasian Economic Council convenes in the Russian capital Moscow on Tuesday, December 23. The summit will be the final meeting before the formal establishment of the Eurasian Economic Union (EEU) on January 1, 2015 and the expected accession of Armenia and Kyrgyzstan on respectively January 2, and May 15, 2015.  The Council convenes in Moscow to add the finishing touches before the formal establishment of the EEU, which constitutes a customs, trade and consumer potential of more than 170 million people. The EEU is the largest economic union in the post-Soviet era, reports the Russian news agency Tass.
  • The news agency quoted the spokesman of Russian President Vladimir Putin, Yury Ushakov, as saying that the EEU is guided by the principles of the World Trade Organization (WTO) and that it will afford the free movement of goods, services, capital as well as labor force within the Union. The Supreme Eurasian Economic Council is, thus far, constituted by the heads of State of  Belarus, Kazakhstan and Russia. It is expected that the three heads of State also will make announcements pertaining the finalization of the procedures for the membership of Armenia as constituent of the EEU. Armenia is expected to join the EEU on January 2, 2015. Moreover, Kyrgyzstan is expected to join the Union on May 15, 2015 after the ratification of additional protocols.
  • A decision on the presidency over the EEU is also expected to be announced after the Council’s meeting on Tuesday. The presidency over the EEU will circulate in alphabetical order, said Ushakov. Another item on the agenda of the Council will be discussions on issues pertaining the cooperation between the EEU, its constituents, and foreign partners. In particular, are mentioned Egypt, India, Israel and Vietnam. Ushakov added that there also exist plans for the signing of cooperation memorandums with the Association of South East Asian Nations (ASEAN) as well as with the Latin American MERCOSUR.
  • Paul Merrell on 22 Dec 14
     
    BRICS on the march.
Paul Merrell

China pledges to help Russia overcome economic hardships - RT News - 0 views

rt.com/...hina-russia-economic-hardships

war & peace economic-warfare Russia China U.S.-foreign-policy

shared by Paul Merrell on 24 Dec 14 - No Cached
  • China’s foreign minister has pledged support to Russia as it faces an economic downturn due to sanctions and a drop in oil prices. Boosting trade in yuan is a solution proposed by Beijing’s commerce minister. “Russia has the capability and the wisdom to overcome the existing hardship in the economic situation," Foreign Minister Wang Yi told journalists, China Daily reported Monday. “If the Russian side needs it, we will provide necessary assistance within our capacity." The offer of help comes as Russians are still recovering from the shock of the ruble’s worst crash in years last Tuesday, when it lost over 20 percent against the US dollar and the euro. The Russian currency bounced back the next day, but it still has lost almost half of its value since March.
Paul Merrell

IMF Loans to Ukraine: Deadly "Economic Medicine" Aimed at Total Destabilization | Globa... - 0 views

www.globalresearch.ca/...5431677

war & peace Ukraine banksters IMF austerity U.S.-foreign-policy

shared by Paul Merrell on 01 Mar 15 - No Cached
  • On February 12, Christine Lagarde, Managing Director of the International Monetary Fund, announced that the IMF had reached an agreement with the Ukrainian government on a new economic reform program. Ms Lagarde’s statement, made in Brussels, came only minutes after peace negotiations between the heads of the German, French, Russian und Ukrainian governments in Minsk, Belarus, had ended. The timing was no coincidence. Washington had been left out of the negotiations and now reacted by sending its most powerful financial organization to the forefront in order to deliver a clear message to the world: that the US will not loosen its grip on the Ukraine, if not by sending weapons, then at least economically and financially.
  • The loans will be based on the terms of an economic program for Ukraine for 2015 – 2020, passed by the Kiev parliament in December 2014, and are tied to harsh conditions laid down in a letter of intent, signed by prime minister Yatseniuk and president Poroshenko in August 2014. Some of the measures have already been implemented, others will follow. Among those already in force is the flexible exchange rate regime which has not only led to a 67% devaluation of the hrivna, lowering the average monthly wage of Ukrainian workers to less than $ 60, but has also opened the doors for international currency speculators who have already made millions by indebting themselves in hrivnia and repaying their debts in euros and dollars. The rate of inflation, running at 25 % in 2014 and expected to rise even higher in 2015, and a hike in gas prices by 50 % in May 2014 made survival almost impossible for the weakest 20 % of the population who already lived below the poverty line in 2013. Among the measures still to come are the layoff of 10 % of the country’s public employees and the partial privatization of health care and education. The retirement age for women is to be raised by 10 years, that for men by 5 years, most benefits for old age pensioners are to be abolished, the pharmaceuticals market is to be deregulated. Retirement pensions will be frozen, and there will be no more free lunches for school children and patients in hospitals. Benefits for victims of the 1986 nuclear disaster in Chernobyl are to be cut, and the boundaries of the officially designated radioactive hazard zone will be revised. The country’s monthly minimum wage is to remain at 1,218.00 hrivna ($ 46 at the current rate of exchange) until at least November 2015.
Paul Merrell

Virtual Economy's Phantom Job Gains Are Based on Statistical Fraud. And More Fraud Is i... - 0 views

www.globalresearch.ca/...5390330

banksters oligarchy employment stats

shared by Paul Merrell on 09 Jul 14 - No Cached
  • Washington can’t stop lying.  Don’t be convinced by last Thursday’s job report that it is your fault if you don’t have a job. Those 288,000 jobs and 6.1% unemployment rate are more fiction than reality.  In his analysis of the June Labor Data from the Bureau of Labor Statistics, John Williams (www.ShadowStats.com) wrote that the 288,000 June jobs and 6.1% unemployment rate  are “far removed from common experience and underlying reality.” Payrolls were overstated by “massive, hidden shifts in seasonal adjustments,” and the Birth-Death model added the usual phantom jobs.  Williams reports that “the seasonal factors are changed each and every month as part of the concurrent seasonal-adjustment process, which is tantamount to a fraud,” as the changes in the seasonal factors can inflate the jobs number.  While the headline numbers always are on a new basis, the prior reporting is not revised so as to be consistent.
  • The monthly unemployment rates are not comparable, so one doesn’t know whether the official U.3 rate (the headline rate that the financial press reports) went up or down. Moreover, the rate does not count discouraged workers who, unable to find a job, cease looking. To be counted among the U.3 unemployed, the person must have actively looked for work during the four weeks prior to the survey. The U.3 rate automatically declines as people who have been unable to find jobs cease trying to find one and thereby cease to be counted as unemployed. There is a second official measure of unemployment that includes people who have been discouraged for less than one year. That rate, known as U.6, is seldom reported and is double the 6.1% rate. Since 1994 there has been no official measure than includes discouraged people who have not looked for a job for more than a year. Including all discouraged workers produces an unemployment rate that currently stands at 23.1%, almost four times the rate that the financial press reports.
  • What you can take away from this is the opposite of what the presstitute media would have you believe.  The measured rate of unemployment can decline simply because large numbers of the unemployed become discouraged workers, cease looking for work, and cease to be counted in the U.3 and U.6 measures of the unemployment rate.   The decline in the employment-population ratio from 63% prior to the 2008 downturn to 59% today reflects the growth in discouraged workers.  Indeed, the ratio has not recovered its previous level during the alleged recovery, an indication that the recovery is an illusion created by the understated measure of inflation that is used to deflate nominal GDP growth.
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  • Insurance (most likely the paperwork of Obamacare) contributed 8,500 jobs. As so few can purchase homes, “real estate rental and leasing” contributed 8,500 jobs. Professional and business services contributed 67,000 jobs, but 57% of these jobs were in employment services, temporary help services, and services to buildings and dwellings.   That old standby, education and health services, accounted for 33,700 jobs consisting mainly of ambulatory health care services jobs and social assistance jobs of which three-quarters are in child day care services.   The other old standby, waitresses and bartenders, gave us 32,800 jobs, and amusements, gambling, and recreation gave us 3,500 jobs.
  • In other words, the economy did not gain 288,000 new jobs last month.   But let’s assume the economy did gain 288,000 jobs and exam where the claimed jobs are reported to be. Of the alleged 288,000 new jobs, 16,000, or 5.5 percent are in manufacturing, which is not very promising for engineers and blue collar workers.  Growth in goods producing jobs has almost disappeared from the US economy.  As explained below, to alter this problem the government is going to change definitions in order to artificially inflate manufacturing jobs. In June private services account for 82 percent of the supposed new jobs.  The jobs are found mainly in non-tradable domestic services that pay little and cannot be exported to help to close the large US trade deficit. Wholesale and retail trade account for 55,300 jobs.  Do you believe sales are this strong  when retailers are closing stores and when shopping malls are closing?
  • Another indication that there has been no recovery is that Sentier Research’s index of real median household income continued to decline for two years after the alleged recovery began in June 2009.   There has been a slight upturn in real median household income since June 2011, but income remains far below the pre-recession level.   The Birth-Death model adds an average of 62,000 jobs to the reported payroll jobs numbers each month. This arbitrary boost to the payroll jobs numbers is in addition to the Bureau of Labor Statistics’ underlying assumption that unreported jobs lost to business failures are matched by unreported new jobs from new business startups, an assumption that does not well fit an economy that fell into recession and is unable to recover.   John Williams concludes that in current BLS reporting, “the aggregate average overstatement of employment change easily exceeds 200,000 jobs per month.”
  • Local government, principally education, gave us 22,000 jobs.   So, where are the jobs for university graduates?  They are practically non-existent. Think of all the MBAs, but June had only 2,300 jobs for management of companies and enterprises. Think of the struggle to get into law and medical schools.  There’s no job payoff. June had jobs for 1,200 in legal services, which includes receptionists and para-legals.  Where are all the law school graduates finding jobs? Offices of physicians (mainly people who fill out the mandated paperwork and comply with all the regulations, which have multiplied under ObamaCare) hired 4,000 people.  Outpatient care centers hired 700 people.  Nursing care facilities hired 2,400 people.  So where are the jobs for the medical school graduates? Aside from all the exaggerations in the jobs numbers of which ShadowStats.com has informed us, just taking the jobs as reported, what kind of economy do these jobs indicate:  a superpower whose pretensions are to exercise hegemony over the world or an economy in which opportunities are disappearing and incomes are falling?
  • Do you think that this jobs picture would be the same if the government in Washington cared about you instead of the mega-rich? Some interesting numbers can be calculated from table A.9 in the BLS press release.  John Williams advises that the BLS is inconsistent in the methods it uses to tabulate the data in table A.9 and that the data is also afflicted by seasonal adjustment problems.  However, as the unemployment rate and payroll jobs are reported regardless of their problems, we can also report the BLS finding that in June 523,000 full-time jobs disappeared and 800,000 part time jobs appeared. Here, perhaps, we have yet another downside of the misnamed Obama “Affordable Care Act.”  Employers are terminating full-time employment and replacing the jobs with part-time employment in order to come in under the 50-person full time employment that makes employers responsible for fringe benefits such as health care. Americans are already experiencing difficulties making ends meet, despite the alleged “recovery.”  If yet another half million Americans have been forced onto part-time pay with consequent loss of health care and other benefits, consumer demand is further compressed, with the consequence, unless hidden by statistical trickery, of a 2nd quarter negative GDP and thus officially the reappearance of recession.
  • What will the government do if a recession cannot be hidden?  If years of unprecedented money printing and Keynesian fiscal deficits have not brought recovery, what will bring recovery?  How far down will US living standards fall for the 99% in order that the 1% can become ever more mega-rich while Washington wastes our diminishing substance exercising hegemony over the world? Just as Washington lied to you about Saddam Hussein’s weapons of mass destruction, Assad’s use of chemical weapons, Russian invasion of Ukraine, Waco, and any number of false flag or nonexistent attacks such as Tonkin Gulf, Washington lies to you about jobs and economic recovery.  Don’t believe the spin that you are unemployed because you are shiftless and prefer government handouts to work.  The government does not want you to know that you are unemployed because the corporations offshored American jobs to foreigners and because economic policy only serves the oversized banks and the one percent. Just as the jobs and inflation numbers are rigged and the financial markets are rigged, the corrupt Obama regime is now planning to rig US manufacturing and trade statistics in order to bury all evidence of offshoring’s adverse impact on our economy.
  • The federal governments Economic Classification Policy Committee has come up with a proposal to redefine fact as fantasy in order to hide offshoring’s contribution to the US trade deficit, artificially inflate the number of US manufacturing jobs, and redefine foreign-made manufactured products as US manufactured products.  For example, Apple iPhones made in China and sold in Europe would be reported as a US export of manufactured goods. Read Ben Beachy’s important report on this blatant statistical fraud in CounterPunch’s July 4th weekend edition: http://www.counterpunch.org/2014/07/04/we-didnt-offshore-manufacturing/ China will not agree that the Apple brand name means that the phones are not Chinese production. If the Obama regime succeeds with this fraud, the iPhones would be counted twice, once by China and once by the US, and the double-counting would exaggerate world GDP. For years I have exposed the absurd claim that offshoring is merely the operation of free trade, and I have exposed the incompetent studies by such as Michael Porter at Harvard and Matthew Slaughter at Dartmouth that claimed to prove that the US was benefitting from offshoring its manufacturing.  My book published in 2012 in Germany and in 2013 in the US, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West, proves that offshoring has dismantled the ladders of upward mobility that made the US an opportunity society and is responsible for the decline in US economic growth. The lost jobs and decline in the middle class has contributed to the rise in income inequality, the destruction of tax base for cities and states, and loss of population in America’s once great manufacturing centers.
  • For the most part economists have turned a blind eye. Economists serve the globalists.  It pays them well. The corruption in present-day America is total. Psychologists and anthropologists serve war and torture. Economists serve globalism and US financial hegemony. Physicists and chemists serve the war industries. Physicists and computer geeks serve NSA. The media serves the government and the corporations. The political parties serve the six powerful private interest groups that rule the country. No one serves truth and liberty. I predict that within ten years truth and liberty will be forbidden words uttered only by “domestic extremists” who are a threat that must be exterminated without due process of law. America has left us.  We now have the tyranny of the Orwellian state that rules, not by the ballot box and Constitution, but by force and propaganda.
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