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Gary Edwards

The Daily Bell - Richard Ebeling on Higher Interest Rates, Collectivism and the Coming ... - 0 views

  • The "larger dysfunction," as you express it, arises out of a number of factors. The primary one, in my view, is a philosophical and psychological schizophrenia among the American people.
  • While many on "the left" ridicule the idea, there is a strong case for the idea of "American exceptionalism," meaning that the United States stands out as something unique, different and special among the nations of the world.
  • the American Founding Fathers constructed a political system in the United States based on a concept on which no other country was consciously founded:
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  • But the American Revolution and the US Constitution hailed a different conception of man, society and government.
  • n the rest of the world, and for all of human history, the presumption has been that the individual was a slave or a subject to a higher authority. It might be the tribal chief; or the "divinely ordained" monarch who presumed to rule over and control people in the name of God; or, especially after the French Revolution and the rise of modern socialism, "the nation" or "the people" who laid claim to the life and work of the individual.
  • the idea of individual rights.
  • That is, as long as the individual did not violate the equal rights of others to their life, liberty and property, each person was free to shape and guide his own future, and give meaning and value to his own life as he considered best in the pursuit of that happiness that was considered the purpose and goal of each man during his sojourn on this Earth.
  • Governments did not exist to give or bestow "rights" or "privileges" at its own discretion.
  • Governments were to secure and protect each individual's rights, which he possessed by "the nature of things."
  • The individual was presumed to own himself. He was "sovereign."
  • The real and fundamental notion of "self-government" referred to the right of each individual to rule over himself.
  • Each individual, by his nature and his reason, had a right to his life, his liberty and his honestly acquired property.
  • during the first 150 years of America's history there was virtually no Welfare State and relatively few government regulations, controls and restrictions on the choices and actions of the free citizen.
  • But for more than a century, now, an opposing conception of man, society and government has increasingly gained a hold over the ideas and attitudes of people in the US.
  • It was "imported" from Europe in the form of modern collectivism.
  • The individual was expected to see himself as belonging to something "greater" than himself. He was to sacrifice for "great national causes."
  • He was told that if life had not provided all that he desired or hoped for, it was because others had "exploited" him in some economic or social manner, and that government would redress the "injustice" through redistribution of wealth or regulation of the marketplace.
  • If he had had financial and material success, the individual should feel guilty and embarrassed by it, because, surely, if some had noticeably more, it could only be because others had been forced to live with noticeably less.
  • left on its own, free competition tends to evolve into harmful monopolies and oligopolies, with the wealthy "few" benefiting at the expense of the "many."
  • They are the crises of the Interventionist-Welfare State: the attempt to impose reactionary collectivist policies of political paternalism and redistributive plunder on a society still possessing parts of its original individualist and rights-based roots.
  • it is in the form of communism's and socialism's critique of capitalism.
  • Unregulated capitalism leads to "unearned" and "excessive" profits; unbridled markets generate the business cycle and the hardships of recessions and depressions;
  • These two conflicting conceptions of man, society and government have been and are at war here in the United States.
  • And if it cannot be gotten and guaranteed through the redistributive mechanisms of the European Union and the euro, well, maybe we should return power to our own nation-states to provide the jobs, the social "safety nets" and the financial means to pay for it through, once again, printing our own national paper currencies.
  • This is the political-philosophical bankruptcy of the West and the dead ends of the collectivist promises of the last 100 years.
  • Ludwig von Mises's book, Socialism: An Economic and Sociological Analysis, originally published in 1922, demonstrated how and why a socialist, centrally planned system was inherently unworkable.
  • The nationalization of productive property, the abolition of markets and the prohibition of all competitive exchange among the members of society would prevent the emergence and operation of a price system, without which it is impossible to know people's demands for desired goods and the relative value they place on them.
  • It also prevents the emergence of prices for the factors of production (land, labor, capital) and makes it impossible to know their opportunity costs – the value of those factors of production in alternative competing uses among entrepreneurs desiring to employ them.
  • Without such a price system the central planners are flying blind, unable to rationally know or decide how best to utilize labor, capital and resources in productively efficient ways to make the goods and services most highly valued by the consuming public.
  • Thus, Mises concluded, comprehensive socialist central planning would lead to "planned chaos."
  • And, therefore, there is no guarantee that the amount of investments undertaken and their time horizons are compatible with the available resources not also being demanded and used for more immediate consumer goods production in the society.
  • As a consequence, financial markets do not work like real markets.
  • Thus, the interventionist state leads to waste, inefficiency and misuses of resources that lower the standards of living that we all, otherwise, could have enjoyed.
  • We cannot be sure what the amount of real savings may be in the society to support real and sustainable investment and capital formation.
  • Government intervention prevents prices from "telling the truth" about the real supply and demand conditions thus leading to imbalances and distortions in the market.
  • We cannot know what the "real cost" of borrowing should be, since interest rates are not determined by actual, private sector savings and investment decisions.
  • Government production regulations, controls, restrictions and prohibitions prevent entrepreneurs from using their knowledge, ability and capital in ways that most effectively produce the goods consumers actually want and at the most cost-competitive prices possible.
  • This is why countries around the world periodically experience booms and busts, inflations and recessions − not because of some inherent instabilities or "irrationalities" in financial markets, but because of monetary central planning through central banking that does not allow market-based financial intermediation to develop and work as it could and would in a real free-market setting.
  • But in the United States and especially in Europe, government "austerity" means merely temporarily reducing the rate of increase in government spending, slowing down the rate at which new debt is accumulating and significantly raising taxes in an attempt to close the deficit gap.
  • The fundamental problem is that over the decades, the size and scope of governments in the Western world have been growing far more than the rates at which their economies have been expanding, so that the "slice" of the national economic "pie" eaten by government has been growing larger and larger, even when the "pie" in absolute terms is bigger than it was, say, 30 or 40 years ago.
  • European governments, in general, take the view that "austerity" means squeezing the private sector more through taxes and other revenue sources to avoid any noticeable and significant cuts in what government does and spends.
  • So there is "austerity" for the private sector and a mad rush for financial "safety nets" for the government and those who live off the State.
  • In reality, of course, it is the burdens of government regulation, taxation and impediments to more flexible labor and related markets that have generated the high unemployment rates and the retarded recovery from the recession.
  • Instead, the "common market" ideal has been transformed into the goal of a European Union "Super-State" to which the individual countries and their citizens would be subservient and obedient.
  • Keynesian policies offer people and politicians what they want to hear. Claiming that any sluggish business or lost jobs are due to a lack of "aggregate demand," Keynes argued that full employment and profitable business could only be reestablished and maintained through "activist" government monetary and fiscal policy – print money and run budget deficits.
  • What Britain and Europe should have as its goal is the ideal of the classical liberal free traders of the 19th century – non-intervention by governments in people's lives, at home and abroad. That is, a de-politicization of society, so people may freely work, trade and travel as they peacefully wish, with government merely the protector of people's individual rights.
  • Take the benefits away and tell people they are free to come and work to support themselves and their families. Restore more flexibility and competitiveness to labor markets and reduce taxes and business regulations.
  • Then those who come to Britain's shores will be those wanting freedom and opportunity without being a burden upon others.
  • What was needed was a change in ideas from the statist mentality to one of individual freedom and unhampered free markets.
  • In an epoch of collectivist ideas, don't be surprised if governments regulate, control, intervene and redistribute wealth.
  • The tentacle of regulations, restrictions and politically-correct social controls are spreading out in every direction from Brussels and its European-wide manipulating and mismanaging bureaucracy.
  • In the name of assuring "national prosperity," politicians could spend money to buy the votes that get them elected and reelected to government offices.
  • And every special interest group could make the case that government-spending programs that benefitted them were all reasonable and necessary to assure a fully employed and growing economy.
  • Furthermore, the Keynesian rationale for government deficit spending enabled politicians to seem to be able to offer something for nothing. They could offer, say, $100 of government spending to voters and special interest groups but the tax burden imposed in the present might only be $75, since the remainder of the money to pay for that government spending was borrowed. And that borrowed money would not have to be repaid until some indefinite time in the future by unspecific taxpayers when that "tomorrow" finally arrived.
  • instability
  • Keynes argued that the market economy's inherent
  • arose from the
  • who were subject to irrational and unpredictable waves of "optimism" and "pessimism."
  • animal spirits" of businessmen
  • Mises argued that there was nothing inherent in the market economy to bring about these swings of economic booms followed by periods of depression and unemployment.
  • If markets got out of balance with the necessity of an eventual correction in the economy to, once again, set things right, the source of this instability was government monetary policy.
  • Central banks too often followed a policy of trying to create "good times" in the economy by expanding the money supply through the banking system.
  • With new, excess funds created by the central bank available for lending, banks lower rates of interest to attract borrowers.
  • But this throws savings and investment out of balance, since the rate of interest no longer serves as a reliable indicator and signal concerning the availability of real savings in the economy in relation to those wanting to borrow funds for various investment purposes.
  • The economic crisis comes when it is discovered that all the claims on resources, capital and labor for all the attempted consumption and investment activities in the economy are greater than the actual and available amounts of such scarce resources.
  • The recession period, in Mises's view, is the necessary "correction" period when in the post-boom era, people must adapt and adjust to the newly discovered "real" supply and demand conditions in the market.
  • Any interference with the "rebalancing" of the economy by government raising taxes, imposing more regulations, or new artificial government "stimulus" activities merely makes it more difficult and time-consuming for people in the private sector to get the economy back on an even keel.
  • Friedrich A. Hayek, once observed, unemployment is not "caused" by stopping an inflation, but rather inflation induces the artificial employments that cannot be sustained and which inevitably disappear once the inflation is reined in.
  • The recession of 2008-2009 was the result of several years of central bank stimulus.
  • From 2003 to 2008, the Federal Reserve increased the money supply by about 50 percent.
  • Interest rates for much of this time, when adjusted for inflation, were either zero or negative.
  • Awash in cash, banks extended loans to virtually anyone, with no serious and usual concern about the borrower's credit-worthiness.
  • This was most notably true in the housing market, where government agencies like Fannie May and Freddie Mac were pressuring banks to make mortgage loans by promising a guarantee that they would make good on any bad home loans.
  • Since 2008-2009, the Federal Reserve has, again, turned on the monetary spigot, increasing its own portfolio by almost $3 trillion, by buying US Treasuries, US mortgages and other assets.
  • So why has there not been a complementary explosion of price inflation?
  • In some areas there has been, most clearly in the stock market and the bond market, But the reason why all that newly created money has not brought about a higher price inflation is due to the fact that a large part of all newly created money is sitting as unlent reserves in banks.
  • This is because the Federal Reserve has been paying banks a rate of interest slightly above the market interest rates to induce banks not to lend.
  • (a) general "regime uncertainty," that is, no one knows what government policy will be tomorrow; will ObamaCare be fully implemented after January 2014?;
  • Among the reasons for the sluggish jobs growth in the US are:
  • (b) what will taxes be for the rest of the current president's term in the White House
  • (c) what will the regulatory environment be like for the next three years – in 2012, the government implemented around 80,000 pages of regulations as printed in the Federal Registry;
  • (d) how will the deficit and debt problems play out between Congress and the White House and will it threaten the general financial situation in the country; an
  • (e) what wars, if any, will the government find itself involved in, in places like the Middle East?
  • China
  • is still a controlled and commanded society, with a government that works hard to try to determine what people read, see and think.
  • All these building projects have been brought into existence by a government that not only controls the money supply and manipulates interest rates but also heavy-handedly tells banks whom to specifically loan to and for what investment activities.
  • Central planning is alive and well in China, with the motives being both power and profits for those inside and outside the Communist Party having the most influence and connections in "high" places.
  • In my opinion, China is heading for a great economic crisis, resulting from a highly imbalanced and distorted economic system still guided far more by politics than sound market decision-making.
  • global financial markets in any foreseeable future. It is a money that still primarily exists to serve the political purposes of those who sit in the "inner circles" of power in Beijing.
  • One hundred years ago, in 1913, how many could have predicted that a year later a European-wide war would break out that would lead to the destruction of great European empires and set the stage for the rise of totalitarian collectivism that resulted in an even worse global war two decades later?
  • Thus, whether, at the end of the day, freedom triumphs and the future is one of liberty and prosperity is partly on each one of us.
  • Near the end of his great book, Socialism, Ludwig von Mises said:
  • "Everyone carries a part of society on his shoulders; no one is relieved of his share of responsibility by others. And no one can find a safe way out for himself if society is sweeping towards destruction. Therefore, everyone, in his own interest, must thrust himself vigorously into the intellectual battle. None can stand aside with unconcern; the interests of everyone hang on the result. Whether he chooses or not, every man is drawn into the great historical struggle, the decisive battle into which our epoch has plunged us . . . Whether society shall continue to evolve or where it shall decay lies . . . in the hands of man."
  • In my view, the idea of a "soft landing" is an illusion based on the idea held by central bankers, themselves, that they have the wisdom and ability to know how to "micro-manage" the all the changes and adjustments resulting from their own manipulations of the monetary aggregates. They do not have this wisdom and ability. So hold on for what is most likely to be another rocky road.
  • It was Mises's clear vision that once society has broken the relationship between value and payment, sooner or later people would not know the price of anything.
  • At this point, investment ceases and business becomes furtive and transactional.
  • People cannot plan for the future because they do not understand the reality of the present.
  • Society begins to sink.
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    Incredible.  A simple explanation that explains everything.  Rchard Ebeling's "Unified Theory of Everything" is something every American can understand.  If only they would take a break from "Dancing with the Stars" and pay attention to the future of their country and the world.  It's a future where either "individual freedom", as defined by our Constitution and Declaration of Independence, will win out; or, the forces of fascist socialism / marxism will continue to roll and rule.  Incredible read!!!!
Gary Edwards

Jim Kunstler's 2014 Forecast - Burning Down The House | Zero Hedge - 0 views

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    Incredible must read analysis. Take away: the world is going to go "medevil". It's the only way out of this mess. Since the zero hedge layout is so bad, i'm going to post as much of the article as Diigo will allow: Jim Kunstler's 2014 Forecast - Burning Down The House Submitted by Tyler Durden on 01/06/2014 19:36 -0500 Submitted by James H. Kunstler of Kunstler.com , Many of us in the Long Emergency crowd and like-minded brother-and-sisterhoods remain perplexed by the amazing stasis in our national life, despite the gathering tsunami of forces arrayed to rock our economy, our culture, and our politics. Nothing has yielded to these forces already in motion, so far. Nothing changes, nothing gives, yet. It's like being buried alive in Jell-O. It's embarrassing to appear so out-of-tune with the consensus, but we persevere like good soldiers in a just war. Paper and digital markets levitate, central banks pull out all the stops of their magical reality-tweaking machine to manipulate everything, accounting fraud pervades public and private enterprise, everything is mis-priced, all official statistics are lies of one kind or another, the regulating authorities sit on their hands, lost in raptures of online pornography (or dreams of future employment at Goldman Sachs), the news media sprinkles wishful-thinking propaganda about a mythical "recovery" and the "shale gas miracle" on a credulous public desperate to believe, the routine swindles of medicine get more cruel and blatant each month, a tiny cohort of financial vampire squids suck in all the nominal wealth of society, and everybody else is left whirling down the drain of posterity in a vortex of diminishing returns and scuttled expectations. Life in the USA is like living in a broken-down, cob-jobbed, vermin-infested house that needs to be gutted, disinfected, and rebuilt - with the hope that it might come out of the restoration process retaining the better qualities of our heritage.
Gary Edwards

Peter Beinart: How Ron Paul Will Change the GOP in 2012 - The Daily Beast - 2 views

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    Not a big Peter Beinhart fan, but this article explains a large part of the Ron Paul phenom. After a life time as a big C Goldwater-Reagan Constitutional Conservative, this summer i made a full transition to big C Constitutional Libertarian. The tipping point for me was the GAO audit of the Federal Reserve, where they discovered $16.1 Trillion of taxpayer dollars missing from the Federal Reserve Bankster Cartel management books. It went to a who's who of international Bankster Cartel members. None of the taxpayer funded "financial collapse of 2008" bailout dollars went to the purposes chartered by their legislation. That includees the TARP $850 Billion, the Obama Stimulous $1 Trillion, and the mega FRBC $16.1 Trillion. No bad debts were purchased and retired. No rotting mortgage securities were swept up and restructured. No shovel ready jobs either. And no one in government or banksterism having caused the financial collapse went to jail. Instead, the perps feasted on the bailout dollars. The debt remains on the books of international Banksters, collecting interest, thirsting for foreclosure. The Bankster Cartel members are flush with cash, but not lending. By law (The Federal Reserve Act of December 23rd, 1913), FRBC members must keep a significant amount of their assets on "reserve" at the Federal Reserve, at 6% interest. In exchange for managing this process and the exploding money supply, the taxpayers of the USA are obligated by law to pay the FRBC 1% per year of (assets under management" (the money supply). Take note: the FRBC takes the 1% per year payment for their services in the form of GOLD!! They will not take payment in the form of paper notes labeled legal tender "Federal Reserve Notes". They only take GOLD. My transition to Constitutional Libertarian begins with a strct reading of the Constitution (the How), the Declaration of Independence, (the Why), and belief in the Rule of Law, not man. The concept of achievi
Gary Edwards

75 Economic Numbers From 2012 That Are Almost Too Crazy To Believe - 0 views

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    Thanks to Marbux we have this extraordinary collection of facts and figures describing the economic catastrophe that has hit the USA.  excerpt: "What a year 2012 has been!  The mainstream media continues to tell us what a "great job" the Obama administration and the Federal Reserve are doing of managing the economy, but meanwhile things just continue to get even worse for the poor and the middle class.  It is imperative that we educate the American people about the true condition of our economy and about why all of this is happening.  If nothing is done, our debt problems will continue to get worse, millions of jobs will continue to leave the country, small businesses will continue to be suffocated, the middle class will continue to collapse, and poverty in the United States will continue to explode.  Just "tweaking" things slightly is not going to fix our economy.  We need a fundamental change in direction.  Right now we are living in a bubble of debt-fueled false prosperity that allows us to continue to consume far more wealth than we produce, but when that bubble bursts we are going to experience the most painful economic "adjustment" that America has ever gone through.  We need to be able to explain to our fellow Americans what is coming, why it is coming and what needs to be done.  Hopefully the crazy economic numbers that I have included in this article will be shocking enough to wake some people up. The end of the year is a time when people tend to gather with family and friends more than they do during the rest of the year.  Hopefully many of you will use the list below as a tool to help start some conversations about the coming economic collapse with your loved ones.  Sadly, most Americans still tend to doubt that we are heading into economic oblivion.  So if you have someone among your family and friends that believes that everything is going to be "just fine", just show them these numbers.  They are a good summary of the problems that the U
Gary Edwards

Of Bailouts, Bonuses, and Generational Responsibility from The Daily Bail - 0 views

  • When one transfers the learned behavior of selfishness to the world of economics, it is east to see how we got to the world of adjustable rate mortgages, thirty-to-one leverage, credit default swaps, and thirty year hedge fund workers acting as is million dollar paychecks was an otherwise normal entitlement.  If it felt good, it was therefore right – and by all means, don’t rock the boat.  And what we are witnessing today in Washington and Wall Street in response to our economic crisis is nothing but a conscious and willing decision to pass off to the next generation the cost of our mistakes.
  • the fundamental principles of capitalism – namely that bad actors need to fail.
  • First and most foremost, the Congress needs to institute a modernized version of Glass-Stegall and separate commercial banking from investment banking activities. What we have seen in the abolishment Glass-Stegall (please thank Mr. Rubin formerly of Goldman Sachs) is the creation of federally subsidize casinos masquerading as publicly traded financial institutions.  They kept profits from over-leveraged bets and were kind enough to pass their losses onto the taxpayers.  Second, Congress needs to repeal legislation (Gramm-Leach) that allowed financial institutions not only to leverage in ways previously not permitted, but which also granted banks and financial situations exemption from federal gambling laws. Third, and this is where moral outrage hits home to those on Wall Street, we cannot live in a country in which any company is allowed to manipulate the levers of government in such a way as to make itself obscenely rich at the expense of the public.
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  • We saw as we proceeded through life that pursuing one’s self-interest was rewarded just as often than doing what was right, that morals were relative, and that there would be no consequences to bad behavior. It became de rigueur to assume that our parents (and their lawyers) would save us from our bad behavior.
  • no consequences to irresponsible behavior.
  • it is hard to avoid the reality that my generation, the baby boomers who are now approaching retirement, have caused the greatest collapse of the world economy since the 1930s, and in the process damaged this country in ways we are now only beginning to understand.
  • Goldman is only the largest corporate contributor to the Obama administration
  • Looking back more eighteen months after the first signs of distress in our economy appeared, it seems that leaders in Congress and Wall Street have erred in a manner never before witnessed in this nation.  In the process, they have conspired through their collective arrogance, greed, and ignorance to damage the economy of the country (if not the world), make many themselves rich beyond the imaginations of most Americans, and in the process commit the greatest financial rape of the American public in the history of the country.  And if that does resonate, then either you have not been paying attention for the past two years, or you have received your paycheck form Goldman Sachs.
  • Capitalism remains the best economic system on the planet, but when those who have profited handsomely seek to socialize losses caused by their errors, then those in power in Washington have a moral responsibility to demand an accounting.  Our anger comes from the fact that our leaders have failed in their public obligations at the expense of the interests on Wall Street, and in the process created the greatest social divide that this country has seen in the past 40 years.
  • our nation has one of the highest ratios of debt to GDP on the globe
  • Finally, the administration should demand (I know it won’t) that Goldman Sachs return the approximately $13 billion it received in backdoor payments through AIG when AIG received $180 billion in bailout money. That $13 billion belongs to the taxpayers of this country, and the decision to allow Goldman to receive that money perhaps stands as the greatest moral outrage of this entire sordid affair.  
  • he nation will not die; to the contrary, it would become stronger if we permit free markets to work, and allow the next-generation to live unburdened by our mistakes and arrogance.
  • The proposal in question was Ryan's "Roadmap for America's Future," a sweeping plan to stave off the nation's looming economic and fiscal collapse by changing the tax code, overhauling the health care system, and reforming the nation's major entitlement programs. Its debt-reducing claims aren't based on mere fantasy -- the Congressional Budget Office has determined that the plan would boost economic growth while making Medicare and Social Security solvent. And it accomplishes these aims without raising taxes or affecting the benefits of current retirees.
  • There's no doubt where the Treasury will turn for finance. We are about to see the greatest stuffing of banks with government securities the world has ever seen. American banks will be forced to gorge on Treasury securities, and disgorge bank reserves. Where else can the government get the next trillion to spend on things like wars, unemployment benefits, and food stamps?There are a few obvious things to think about here. At the rate of $120 billion a month, it will only take about nine months to blow through over a trillion dollars in free bank reserves. Each Treasury auction will find it more difficult to sell all of the treasury securities, and it will take rising interest rates to coax out even more reserves from the banks. (When you need to borrow over $4 billion a day, even a trillion dollars doesn't last long.)
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    Wow!  This is the best response to the financial collapse i have read to date.  Exceptional in clarity, but written with a tone of mixed sorrow and shame.  Mr. Gallow places the blame exactly where it should be placed.  It's a generational thing with one exception Mr. Gallow overlooks - the Obama margin of victory was very much due to the massive turnout and votes of post baby boomer generations.  We boomers may have created and caused the financial collapse and destruction of America, but they were dumb enough to put the decline of capitalism and ordered liberty on marxist steroids. excerpt:  .... this is the first time that I have been so angered by incompetence and greed in government and Wall Street to express publicly my own thoughts.  In simple terms, what has dawned on me is that my generation, the "Baby Boomers" between the ages of 45 and 65, has emerged not as not the most significant or talented generation in our history (as we thought we were), but rather as the most self-absorbed and reckless. Because ours will be the first generation in the history of this country to leave to its successors a nation in worse shape than that which it inherited; put differently, we will be the first generation in this nation to have taken from our parents and stolen from our children. .. it is hard to avoid the reality that my generation, the baby boomers who are now approaching retirement, have caused the greatest collapse of the world economy since the 1930s, and in the process damaged this country in ways we are now only beginning to understand. ... Looking back more eighteen months after the first signs of distress in our economy appeared, it seems that leaders in Congress and Wall Street have erred in a manner never before witnessed in this nation.  In the process, they have conspired through their collective arrogance, greed, and ignorance to damage the economy of the country (if not the world), make many themselves rich beyond the imaginations of mo
Gary Edwards

The Daily Bell - Richard Ebeling on Libertarianism, Anarchism and the Truth of Austrian... - 0 views

  • These are at least two conceivable methods of compelling the government to stop, or limit, its abuse of the monetary printing press.
    • Gary Edwards
       
      Ebeling proposes two methods of reining in out of control government printing of paper money.  There is a third method; one used by Lincoln and Kennedy.  This is the issuance of gold/silver/oil backed reserve notes.  The notes represent gold or silver being held on deposit, and are fully redeemable.   The value of the gold/silver or another commodity represented floats in the marketplace against goods and services.  Nor is there a fixed exchange rate for converting fiat (paper) dollars.  The market will figure those things out if left free to do so.  And that's one big big "if".
  • So the normal market pressures of downward price and wage adjustments in the recession are partly counter-acted by a new monetary expansion that is delaying the necessary re-coordination of market activities. Thus, given these two pressures, prices do not fall as much as a post-recession adjustment may require and they do not rise as much or as fast as might otherwise occur due to the renewed monetary expansion.
  • At the same time, as you correctly ask, the Federal Reserve has been paying banks a relatively low rate of interest to keep large excessive reserves in their accounts at the Federal Reserve, rather than to fully lend those excessive reserves to private borrowers. And given the low market rates of interest that Federal Reserve policy has generated, even the low rate of interest on unlent excess reserves offered to banks by the Federal Reserve appears the relatively more profitable way to use their available funds.
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  • Why has the Federal Reserve done this? They infused these two trillion dollars into the financial markets back in 2008-2010 because they feared that an economy-wide bank collapse was possible. They are afraid to reverse this monetary expansion because to do so would reduce potential bank-lending capacity and put upward pressure on interest rates at a time when the Federal Reserve wants to prevent the sluggish recovery from slowing down even more and also raise the cost of the US government's financing of its trillion dollar a year deficits. So, instead, they leave this excess bank lending power sloshing around in the system, while keeping it off the market and from causing significant new price inflationary pressures, by paying banks not to lend those vast sums.
  • Austrians argue that economics is fundamentally a science and study of "human action." It attempts to trace out the logic and implications of man's intentional conduct in selecting among ends desired and applying perceived means to try to attain them. Austrians emphasize that all human action and the social and market interactions among men occur in a setting of imperfect knowledge, inescapable degrees of uncertainty and always through the passage of time.
  • They try to explain the market processes by which men discover mutual gains from trade.
  • They emphasize that the networks of social institutions in which and through which men discover ways to coordinate their interdependent actions in complex systems of division of labor are not the creations of government edict or command; but are most often among those unintended consequences of multitudes of self-interested individual actions and interactions.
  • They have developed theories of market competition and the role of the entrepreneur as the individuals always alert to market opportunities, and whose actions tend to bring about coordination between market supplies and demands.
  • The Austrian analysis of markets, competition and prices, led them to devastating critiques of the unworkability of all forms of socialist central planning, the inherent contradictions and inconsistencies in virtually all forms of government intervention and regulation, and a theory of money and the business cycle that points the finger of responsibility for inflations and recessions at the doorstep of government monetary and fiscal policies.
  • The philosophy of liberty proclaims that each individual is unique and possessing inherent rights to his life, liberty and honestly acquired property.
  • It is not surprising that classical liberal and libertarian ideas are often attacked. After all they are the ideas that consistently oppose the current political systems of plunder, privilege and power lusting.
  • That government, if it is to exist, is to serve as the protector and guardian of our distinct individual rights, and not the master of men who are obligated to sacrifice themselves for some asserted "national interest," "general welfare," or "common good."
  • The only reasonable meaning to the "common good" or the "general welfare" is when each individual is free to peacefully live his life as he chooses and is at liberty to voluntarily associate and interact with his fellow men for mutually beneficial improvements to their lives.
  • It is virtually inevitable that those who use political power for their own gain at their neighbor's expense will vehemently resist and oppose any attempt to stop them from feeding at the government trough.
  • there is everywhere a class of plundering peoples – politicians, bureaucrats, special interest groups – receiving tax-based income redistributions and subsidies and benefiting from anti-competitive regulations and protections against and at the expense of their fellow human beings.
  • This is the great battle of the twenty-first century;
  • Austrian Economics, not surprisingly, has been attacked precisely because of its insightful and cogent analysis of how it was government intervention and central bank monetary manipulation that generated the unsustainable boom in the last decade that set the stage for the inescapable bust, which the world is still suffering from.
  • There are "natural rights" libertarians
  • "utilitarian" or "consequentialist" libertarians.
  • most convincing case for human liberty
  • Because libertarians have not agreed about this among themselves, nor have they been able to persuade enough others in society to move the world further away from the collectivist premises and the interventionist-welfare state policies that guide so much that goes on in the world.
  • I happen to have been most strongly influenced by the "natural rights" defense of liberty, and especially as formulated by Ayn Rand in her philosophy of Objectivism.
  • First, it is argued that if one believes that the use of any and all forms of coercion are morally unacceptable in human relationships, then this should also imply that any compulsory taxation, even when for the funding of defense and legal justice, is unjustifiable. And, second, it is argued that the private sector could provide such admittedly essential services far more efficiently and cost-effectively than the monopoly agency of government. Murray Rothbard and David Friedman probably have been among the most well-known and articulate proponents of the anarcho-capitalist position over the last 50 years.
  • Others like the Ayn Rand, Robert Nozick and Ludwig von Mises have made the case for constitutionally limited government. Their counter arguments have centered on the ideas that conflicts over jurisdiction, disputes among private defense agencies contracted by different individuals who have disagreements, and the likelihood that "defense" would turn out to be a "natural monopoly" anyway – that is, a tendency for one agency to end up being the single provider of defense and judicial services over a wide geographical area – raise questions about the long-run workability and sustainability of competing defense companies in society.
  • From a moral perspective, I am in sympathy with the anarcho-capitalist position, in that I find the compulsory taking of people's income and wealth without their consent for whatever reason to be ethically repugnant.
  • We should focus on what we all agree upon:
  • This means that the Supreme Court has said that you are the slave of "society" and the government that represents "the people," since, in principle, anything that you do or not do can be argued to have some affect, positive or negative, on others.
  • Think about this Court decision. It is saying that if you do not buy health insurance the government will tax you to pay for it. If you refuse to pay the tax, the government will end up attempting to seize financial assets or real property you own in lieu of failure to pay. If you try to prevent this taking of your property, you are subject to arrest and imprisonment. If you resist arrest or imprisonment, the police have the authority to force you to comply – up to and including lethal force to subdue you into obedience.
  • the freedom and dignity of the individual human being; and the attempt whenever and wherever on our part to reduce, repeal and abolish all forms of regulation, control, restriction, prohibition on the peaceful and honest affairs of our fellow men.
  • Once you accept this premise, there is no end to the minutest detail and content of your life and actions the government cannot claim jurisdiction over to regulate, control or prohibit.
  • Here is that end-of-the-road of the notion of unlimited democratic rule by "the people" and those who claim to speak for "the people" and rule on their behalf.
  • Ayn Rand, of course, rejected any connection or compatibility with libertarianism. She argued this on two grounds. First, she felt that too frequently libertarians spoke of individual freedom, free markets and limited government, but failed to explicitly and clearly ground their political-economic ideas in a demonstrable philosophy of man, nature and society.
  • Government control of money is the potentially most dangerous and damaging form of government power short of outright socialism.
  • Rand's political philosophy arises out of the "natural rights" tradition, that rights are inherent in the nature of man and precede government.
  • Mises believed that rights were, in a sense, "social conventions" that had evolved out of the discovery that certain social institutional arrangements were more conducive to the mutual betterment of all members of society for achieving their individual goals and values
  • What they did agree upon was that, given their respective conceptions of the basis of individual rights, there was no social and economic system more consistent with the protection of those rights and more likely to generate the material and cultural achievements that are potentially possible than laissez-faire capitalism.
  • And in the twentieth century, Rand and Mises were two of the most principled and uncompromising advocates for the completely free market society
  • Second, she rejected the anarchist elements in the libertarian movement, believing that any reasonable analysis of the reality of man and the human condition strongly suggested the inescapable need for a single legal standard for defining and enforcing individual rights and a single authority to as impartially and "objectively" as possible enforce laws defending each individual's rights to his life, liberty and honestly acquired property.
  • "Hardly ever do the advocates of free capitalism realize how utterly their ideal was frustrated at the moment the state assumed control of the monetary system . . .
  • A 'free' capitalism with government responsibility for money and credit has lost its innocence.
  • From that point on it is no longer a matter of principle but one of expediency how far one wishes or permits government interference to go.
  • Money control is the supreme and most comprehensive of all governmental controls short of expropriation."
  • Government basically has three ways to acquire the income and wealth of its citizens: taxation, borrowing and printing money
  • So, governments throughout history have turned to the monetary printing press to fund the expenditures not covered by taxes or borrowed money
  • This "non-neutral," or uneven, impact on prices and wages in the economy during the inflationary process brings in its wake distorted profit margins, misallocations of resources and labor and various mal-investments of capital. Here are the seeds for the artificial and unsustainable "booms" that invariably come crashing down in the "bust" once the monetary expansion that has set it all in motion is stopped or slowed down.
  • I believe that the choice and use of money should be left to the market, that is, to the free and voluntary interactive decisions of those buying and selling in the market.
  • I consider a private, competitive free banking system to be the only one consistent with a truly free market society.
Gary Edwards

America Is Exhibiting All of the Signs of a Failing Empire Washington's Blog - 1 views

  • The U.S. is also following the age-old recipe for imperial decline by: Creating unsustainable levels of inequality Destroying upward mobility (and see this) Incurring staggering levels of debt to finance war and luxury goods Debasing its currency Military overspending Runaway corruption Apathy and greed And the decline of the America empire is speeding up due the U.S. falling into the Thucydides trap.
  • The U.S. is also following the age-old recipe for imperial decline by: Creating unsustainable levels of inequality Destroying upward mobility (and see this) Incurring staggering levels of debt to finance war and luxury goods Debasing its currency Military overspending Runaway corruption Apathy and greed And the decline of the America empire is speeding up due the U.S. falling into the Thucydides trap.
  • The U.S. is also following the age-old recipe for imperial decline by: Creating unsustainable levels of inequality Destroying upward mobility (and see this) Incurring staggering levels of debt to finance war and luxury goods Debasing its currency Military overspending Runaway corruption Apathy and greed And the decline of the America empire is speeding up due the U.S. falling into the Thucydides trap.
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  • The U.S. is also following the age-old recipe for imperial decline by: Creating unsustainable levels of inequality Destroying upward mobility (and see this) Incurring staggering levels of debt to finance war and luxury goods Debasing its currency Military overspending Runaway corruption Apathy and greed And the decline of the America empire is speeding up due the U.S. falling into the Thucydides trap.
  • The U.S. is also following the age-old recipe for imperial decline by: Creating unsustainable levels of inequality Destroying upward mobility (and see this) Incurring staggering levels of debt to finance war and luxury goods Debasing its currency Military overspending Runaway corruption Apathy and greed And the decline of the America empire is speeding up due the U.S. falling into the Thucydides trap.
  •  
    "America Is Exhibiting All of the Signs of a Failing Empire Posted on October 10, 2015 by WashingtonsBlog The American Empire Is Quickly Declining Consummate insider Colonel Lawrence Wilkerson - former chief of staff to Colin Powell, and now distinguished adjunct professor of Government and Public Policy at William & Mary - notes that the U.S. is exhibiting all of the signs of a failing empire, including: Relying on massive military force (and using gigantic complexes to support it) as the be-all and end-all of power, and belittling diplomacy Maintaining standing armies, instead of disbanding military forces between wars Using more mercenary forces than citizen troops Spending disproportionately large amounts of blood and treasure in order to counter threats on the status quo … which simply exacerbates the threat against the empire Going ethically and morally bankrupt Ending up up having bankers and financiers end up running the real power Suffering great hiccups in finance and trade The leaders no longer really believe in or follow the ideals of the founders"
  •  
    The 1 hour-25 minute video talk is well worth listening to. Col. Wilkerson is now a professor who has deeply studied the decline of empires. He speaks from deep knowledge both as a former insider and as a scholar about the state of the American Empire. But notice that the linked page has two copies of the same talk embedded. Don't bother watching both unless you want to hear it twice. :-)
Paul Merrell

Iraq's Next PM? Ahmed Chalabi - 0 views

  • JUAN GONZÁLEZ: In other news from Iraq, pressure is mounting on Iraqi Prime Minister Nouri al-Maliki to form a less sectarian government or to resign. Earlier today, a representative of the influential Shiite cleric Grand Ayatollah Ali al-Sistani called for the creation of what he described as a new "effective" government. Meanwhile, on Thursday, The New York Times revealed that the U.S. ambassador in Iraq, Robert Beecroft, and the State Department’s top official in Iraq, Brett McGurk, recently met with the controversial Iraqi politician Ahmed Chalabi, who has been described as a potential candidate to replace Maliki. AMY GOODMAN: Chalabi is the former head of the Iraqi National Congress, a CIA-funded Iraqi exile group that strongly pushed for the 2003 U.S. invasion. Chalabi’s INC helped drum up pre-war claims that Saddam Hussein was developing weapons of mass destruction and had links to al-Qaeda. The group provided bogus intelligence to the Bush administration, U.S. lawmakers, and journalists at The New York Times and other papers. After the invasion, Chalabi became chair of the Supreme National Commission for De-Baathification. Many blame his actions for politically isolating Iraq’s Sunni minority and causing sectarian strife.
  • Chalabi has defended his actions leading up to the invasion. In 2004, he told the London Telegraph, quote, "We are heroes in error. ... As far as we’re concerned, we’ve been entirely successful. That tyrant Saddam is gone, and the Americans are in Baghdad. What was said before is not important," Chalabi said. Well, to talk more about Ahmed Chalabi, we’re joined by Andrew Cockburn, Washington editor for Harper’s Magazine. His latest piece for Harper’s is headlined "The Long Shadow of a Neocon." Welcome to Democracy Now!, Andrew Cockburn. Talk about what you understand is happening in this battle right now over whether Prime Minister Nouri al-Maliki will be—will be overthrown and what role Chalabi could play in this.
  • ANDREW COCKBURN: Well, my understanding is that the Americans have made it very clear in Baghdad that Maliki—they want Maliki to go, I mean, even to the point of saying—they were saying a couple days ago that there would be no aid of any kind—military aid, airstrikes or what have you—unless—while Maliki was leader of the government. I mean, they view him as the source of all their troubles, which is not totally inaccurate. There’s a certain irony in this, in that they—Maliki is in power, really, thanks to the—thanks to the U.S. Zalmay Khalilzad, then the ambassador to Baghdad, in 2006 selected Maliki, much to everyone’s surprise, including Maliki’s. When Khalilzad said, "How would you like to be prime minister?" Maliki said, "Are you serious?" So, and then that was reaffirmed again in 2010 when Maliki had basically lost an election, and the U.S. and Iran, for that matter—further ironies here—really got—really rammed him back down the throats of the Iraqi people. So, now to be saying, you know, Maliki has to go, as I say, is rich with irony.
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  • JUAN GONZÁLEZ: And your article on Khalilzad also talks about his influence in Afghanistan, as well. Could you talk a little bit about his history? ANDREW COCKBURN: Well, Khalilzad, yeah, he’s been a sort of longtime foot soldier in the neocon, neoconservative, movement. I mean, he has a sort of pretty grisly pedigree. He, early on—I mean, he’s an Afghan, and then made his way to the U.S. as a young man, as a bright student. And from there, he fell under the influence of Albert Wohlstetter, who was a character in Chicago who was very influential in the movement, who also mentored Richard Perle. And then you see Khalilzad—from the beginning of the anti-Soviet war in Afghanistan, he’s very much in the mix. He claims now to have been instrumental in sort of directing the whole policy, which I don’t think is really the case. But anyway, there he was signing all the resolutions, calling for war with—overthrowing Saddam, and so forth.
  • And his moment came in 2001, or after 2001, when we, you know, successfully toppled the Taliban regime, and Khalilzad was really only the Afghan or sort of pretty much the only Muslim any of these people knew, and so they appointed him the overseer of the post-Taliban Afghanistan, from which position he selected one Hamid Karzai—again, much to the subsequent grief of U.S. administrations—really with the view of—a lot of Afghans I talked to at the time thought, well, Karzai was a fairly weak figure, and Khalilzad’s idea was that he, Khalilzad, would be the real ruler of Afghanistan and behave like that, really. He was bossing all them, and he restored—he fostered all these ghastly warlords and strongmen, with himself really as the biggest warlord of all. He’d threaten them with airstrikes and so forth. So, after he had pretty much ensured that no stable settlement would emerge in Afghanistan, and really his actions had led to the revival of the Taliban, he failed upwards and was moved to Iraq, where the U.S. was trying to sort of put in place some kind of government that they could entrust Iraq to. And as I said, they didn’t like the man they had, a prime minister called Jaafari. And Khalilzad looked around and selected this character, al-Maliki, who was a fairly comparatively obscure figure in the—had been in the exiled opposition. He had lived in Damascus for most of his adult life, running a butcher shop. And suddenly, as I say, he called in al-Maliki.
Paul Merrell

Collapse of Ukraine Government: Prime Minister Yatsenyuk Resigns amidst Pressures Exert... - 0 views

  • Ukraine’s Prime Minister Arseniy Yatsenyuk announced his resignation in the Rada (Parliament) and that of the entire Cabinet on Thursday, July 24.  This decision was taken following the withdrawal of two parties from the coalition government and the non-adoption of two important pieces of legislation, which had been demanded by the International Monetary Fund (IMF) “I announce my resignation after the collapse of the coalition and the blocking of government initiatives … “In connection with the breakup of the parliamentary coalition, as well as non-adoption of a number of important bills, I announce my resignation,” The resignation of the Prime Minister signifies the collapse of the government and the resignation of the entire cabinet. “But the cabinet members will continue fulfilling their duties until a new coalition is formed in the Rada.”
  • On July 24th, the Rada failed to support the government’s bill pertaining to the 2014 budget sequestration, which had been demanded by the IMF on behalf of Kiev’s external creditors. The disbursement by the IMF of the “Second Tranche” of a 17 billion dollar policy based loan was conditional upon the prior adoption of this legislation.
  • The national economy is in crisis, the political structures of the country are in total disarray, all of which is occurring in the immediate wake of the Malaysian Airlines MH17 crash in Eastern Ukraine. The two parties which left the coalition are The Neo-Nazi Svoboda party and the Centre Right Ukraine Democratic Alliance for Reform (UDAR) Party led by former champion boxer Vitali Klitschko.
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  • The entire country is in an impasse. No money will be forthcoming from the IMF until this legislation is adopted. In the meantime, Ukraine remains on the blacklist of its external creditors. Moreover, a controversial draft law on reforming the country’s gas transportation system was rejected (Itar-Tass, July 24, 2014). Both bills were tied into the government’s negotiations with both the EU and the IMF.
  • President Poroshenko (left) has intimated that the resignation of the cabinet has paved the way for a process of meaningful political restructuring:  “Society wants a full reset of state authorities,” said Mr Poroshenko. What is implied by Poroshenko’s statement is that the parliamentary process is slated to become defunct inasmuch as Rada is obligated to adopt the legislation demanded by the IMF and the European Union. And if the Rada does not adopt the legislation, the composition of the Parliament will be changed through a process of outright political manipulation. The 2014 budget project demanded by the IMF includes massive cuts in social spending coupled with increased allocations to the Armed Forces. Its adoption will contribute (virtually overnight) to a further process of the impoverishment of the Ukraine population.
  • Yatsenyuk intimated in his resignation speech that the State was bankrupt and that failure to abide by IMF demands would create social chaos: “The fact is that today you failed to vote for the laws, and I have nothing (with which) to pay wages of policemen, doctors, teachers; nothing to buy a rifle with, nothing to fuel an armored personnel carrier with. Today you failed to take a decision to fill the gas storages to allow us to live through the winter, to at last free ourselves from dependence on Russian gas,” (Rada, July 24, 2014)
  •  
    The American coup-imposed government of Ukraine goes bankrupt and collapses. 
Paul Merrell

http://www.informationclearinghouse.info/article35198.htm - 0 views

  • According to a new report in The Wall Street Journal, the scope of the NSA phone monitoring includes customers of all three major phone networks—Verizon, AT&T and Sprint—as well as records from Internet service providers and purchase information from credit card providers.
  • GLENN GREENWALD: Right. Well, first of all, after our story was published, and The Washington Post published more or less simultaneously a similar story, several news outlets, including NBC News, confirmed with government officials that they in fact have exactly the access to the data that we describe. The director of national intelligence confirmed to The New York Times, by name, that the program we identify and the capabilities that we described actually exist. So, you have a situation where somebody seems to be lying. The NSA claims that these companies voluntarily allow them the access; the companies say that they never did.
  • on Thursday, Senate Intelligence Committee Chair Dianne Feinstein told reporters in the Senate gallery that the government’s top-secret court order to obtain phone records on millions of Americans is, quote, "lawful." SEN. DIANNE FEINSTEIN: As far as I know, this is the exact three-month renewal of what has been the case for the past seven years. This renewal is carried out by the FISA court under the business records section of the PATRIOT Act, therefore it is lawful.
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  • On Thursday, Glenn, Director of National Intelligence James Clapper said he stood by what he told Democratic Senator Ron Wyden of Oregon in March, when he said that the National Security Agency does "not wittingly" collect data on millions of Americans. Let’s go to that exchange. SEN. RON WYDEN: Does the NSA collect any type of data at all on millions or hundreds of millions of Americans? JAMES CLAPPER: No, sir. SEN. RON WYDEN: It does not? JAMES CLAPPER: Not wittingly. There are cases where they could inadvertently, perhaps, collect, but not wittingly.
  • AMY GOODMAN: That’s the questioning of the head of the national intelligence, James Clapper, by Democratic Senator Ron Wyden. Glenn Greenwald? GLENN GREENWALD: OK. So, we know that to be a lie, not a misleading statement, not something that was sort of parsed in a way that really was a little bit deceitful, but an outright lie. They collect—they collect data and records about the communications activities and other behavioral activities of millions of Americans all the time. That’s what that program is that we exposed on Wednesday. They go to the FISA court every three months, and they get an order compelling telephone companies to turn over the records, that he just denied they collect, with regard to the conversations of every single American who uses these companies to communicate with one another. The same is true for what they’re doing on the Internet with the PRISM program. The same is true for what the NSA does in all sorts of ways. We are going to do a story, coming up very shortly, about the scope of the NSA’s spying activities domestically, and I think it’s going to shock a lot of people, because the NSA likes to portray itself as interested only in foreign intelligence gathering and only in targeting people who they believe are guilty of terrorism, and yet the opposite is true. It is a massive surveillance state of exactly the kind that the Church Committee warned was being constructed 35 years ago. And we intend to make all those facts available so people can see just how vast it is and how false those kind of statements are.
Gary Edwards

Porter Stansberry- Porter Stansberry: These events confirm my greatest fears - 0 views

  •  
    The Central Banksters of the World are printing money as fast as possible, and using this paper to buy up tons of GOLD.  Rather than lending to productive businesses, the Banksters are using their fiat paper volumes to buy up hard assets, with land, precious metals, and controlling positions in asset rich productive or leading commodity enterprises.  This is not going to end well for those left holding paper when it all crashes. "If you didn't take our warnings or strategies seriously before, I hope now you can see that we have been right: The authorities mean to print their bad sovereign debts away through an ongoing and massive inflation. Just how big is this inflation likely to be? When you look at the world's largest external debt positions, two economic areas appear as outliers: the European Union ($16 trillion) and the U.S. ($14.7 trillion). Even on a per-capita basis, the external foreign debts of the U.S. are enormous ($50,000 per person). Many countries in the European Union are in an even more precarious position. France has $74,000 in external debt per person. Germany has $57,000. These countries obviously have much to gain by printing the currency necessary to repay their obligations. I estimate we'll see at least another doubling of the monetary base in both the U.S. and the ECB. The question is how these nations' creditors will respond. In response... the West's creditors are piling into the one reserve asset no one can print: gold. Since the beginning of quantitative easing in America, Russia has almost doubled its holdings of gold, buying 500 tons. China bought 454 tons during the same period. And it's not only America's economic and military rivals who obviously no longer trust the U.S. dollar or the euro. In the last year, Switzerland's central bank has quietly increased its holdings of gold by nearly 25%. We are approaching the moment of a global paper currency collapse: In the second quarter of this year, central banks around the world
Paul Merrell

THE 9/11 READER. The September 11, 2001 Terror Attacks | Global Research - 0 views

  • GLOBAL RESEARCH ONLINE INTERACTIVE READER SERIES GR I-BOOK No.  7  THE 9/11 READER The September 11, 2001 Terror Attacks 9/11 Truth: Revealing the Lies,  Commemorating the 9/11 Tragedy
  • August 2012 The 911/ Reader is part of Global Research’s Online Interactive I-Book Reader, which brings together, in the form of chapters, a collection of Global Research feature articles, including debate and analysis, on a broad theme or subject matter.  To consult our Online Interactive I-Book Reader Series, click here.
  • Table of Contents of the 9/11 Reader In Part I, the 911 Reader provides a review of what happened on the morning of 9/11, at the White House, on Capitol Hill, the Pentagon, at Strategic Command Headquarters (USSTRATCOM), What was the response of the US Air Force in the immediate wake of the attacks?  Part II focusses on “What Happened on the Planes” as described in the 9/11 Commission Report. Part III sheds light on what caused the collapse of the World Trade Center buildings. It also challenges the official narrative with regard to the attack on the Pentagon. Part IV reviews and refutes the findings of the 9/11 Commission Report. Part V focusses on the issue of foreknowledge by Western intelligence agencies. Part VI examines the issue of how foreknowledge of the attacks was used as an instrument of insider trading on airline stocks in the days preceding September 11, 2001. The bonanza financial gains resulting from insurance claims to the leaseholders of the WTC buildings is also examined.
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  • Part VII focusses on the history and central role of Al Qaeda as a US intelligence asset. Since the Soviet-Afghan war, US intelligence has supported the formation of various jihadist organizations. An understanding of this history is crucial in refuting the official 9/11 narrative which claims that Al Qaeda, was behind the attacks. Part VIII centers on the life and death of 9/11 “Terror Mastermind” Osama bin Laden, who was recruited by the CIA in the heyday of the Soviet Afghan war. This section also includes an analysis of the mysterious death of Osama bin Laden, allegedly executed by US Navy Seals in a suburb of Islamabad in May 2011. Part  IX  focusses on “False Flags” and the Pentagon’s “Second 9/11″. Part X examines the issue of “Deep Events” with contributions by renowned scholars Peter Dale Scott and Daniele Ganser. Part XI  examines the structure of 9/11 propaganda which consists in “creating” as well “perpetuating” a  “9/11 Legend”. How is this achieved? Incessantly, on a daily basis, Al Qaeda, the alleged 9/11 Mastermind is referred to by the Western media, government officials, members of the US Congress, Wall Street analysts, etc. as an underlying cause of numerous World events. Part XII focusses on the practice of 9/11 Justice directed against the alleged culprits of the 9/11 attacks. The legitimacy of 9/11 propaganda requires fabricating “convincing evidence” and “proof” that those who are accused actually carried out the attacks. Sentencing of Muslims detained in Guantanamo is part of war propaganda. It depicts innocent men who are accused of the 9/11 attacks, based on confessions acquired through systematic torture throughout their detention. Part  XIII focusses on 9/11 Truth.  The objective of 9/11 Truth is to ultimately dismantle the propaganda apparatus which is manipulating the human mindset. The 9/11 Reader concludes with a retrospective view of 9/11 ten years later.
  • PART  I Timeline: What Happened on the Morning of September 11, 2001 Nothing Urgent: The Curious Lack of Military Action on the Morning of September. 11, 2001 - by George Szamuely – 2012-08-12 Political Deception: The Missing Link behind 9-11 - by Michel Chossudovsky – 2002-06-20 On the morning of September 11, Pakistan’s Chief Spy General Mahmoud Ahmad, the alleged “money-man” behind the 9-11 hijackers, was at a breakfast meeting on Capitol Hill hosted by Senator Bob Graham and Rep. Porter Goss, the chairmen of the Senate and House Intelligence committees. 9/11 Contradictions: Bush in the Classroom - by Dr. David Ray Griffin – 2008-04-04 9/11 Contradictions: When Did Cheney Enter the Underground Bunker? - by David Ray Griffin – 2008-04-24 VIDEO: Pilots For 9/11 Truth: Intercepted Don’t miss this important documentary, now on GRTV - 2012-05-16
  • PART II What Happened on the Planes “United 93″: What Happened on the Planes? - by Michel Chossudovsky – 2006-05-01   Phone Calls from the 9/11 Airliners Response to Questions Evoked by My Fifth Estate Interview - by Prof David Ray Griffin – 2010-01-12 Given the cell phone technology available in 2001, cell phone calls from airliners at altitudes of more than a few thousand feet, were virtually impossible Ted Olson’s Report of Phone Calls from Barbara Olson on 9/11: Three Official Denials - by David Ray Griffin – 2008-04-01 Ted Olson’s report was very important. It provided apparent “evidence” that American 77 had struck the Pentagon.
  • PART III What Caused the Collapse of The WTC Buildings and the Pentagon? The Destruction of the World Trade Center: Why the Official Account Cannot Be True - by Dr. David Ray Griffin – 2006-01-29 The official theory about the Twin Towers says that they collapsed because of the combined effect of the impact of the airplanes and the resulting fires Evidence Refutes the Official 9/11 Investigation: The Scientific Forensic Facts - by Richard Gage, Gregg Roberts – 2010-10-13 VIDEO: Controlled Demolitions Caused the Collapse of the World Trade Center (WTC) buildings on September 11, 2001 - by Richard Gage – 2009-09-20 VIDEO: 9/11: The Myth and The Reality Now on GRTV - by Prof. David Ray Griffin – 2011-08-30 Undisputed Facts Point to the Controlled Demolition of WTC 7 - by Richard Gage – 2008-03-28 VIDEO: 9/11 Explosive Evidence: Experts Speak Out See the trailer for this ground-breaking film on GRTV - 2011-08-03 9/11: “Honest Mistake” or BBC Foreknowledge of Collapse of WTC 7? Jane Standley Breaks Her Silence - by James Higham – 2011-08-18 The Collapse of WTC Building Seven. Interview. Comment by Elizabeth Woodworth - by David Ray Griffin – 2009-10-17   Building What? How SCADs Can Be Hidden in Plain Sight: The 9/11 “Official Story” and the Collapse of WTC Building Seven - by Prof David Ray Griffin – 2010-05-30 Besides omitting and otherwise falsifying evidence, NIST also committed the type of scientific fraud called fabrication, which means simply “making up results.” VIDEO; Firefighters’ Analysis of the 9/11 Attacks Refutes the Official Report - by Erik Lawyer – 2012-08-27 VIDEO: Pentagon Admits More 9/11 Remains Dumped in Landfill - by James Corbett – 2012-03-01 The Pentagon revealed that some of the unidentifiable remains from victims at the Pentagon and Shanksville sites on September 11, 2001 were disposed of in a landfill. 9/11: The Attack on the Pentagon on September 11, 2001 The Official Version Amounts to an Enormous Lie - by Thierry Meyssan – 2012-08-16
  • PART IV Lies and Fabrications: The 9/11 Commission Report A National Disgrace: A Review of the 9/11 Commission Report - by David Ray Griffin – 2005-03-24 The 9/11 Commission Report: A 571 Page Lie - by Dr. David Ray Griffin – 2005-09-08 September 11, 2001: 21 Reasons to Question the Official Story about 9/11 - by David Ray Griffin – 2008-09-11 911 “Conspiracy Theorists” Vindicated: Pentagon deliberately misled Public Opinion Military officials made false statements to Congress and to the 911 Commission - by Michel Chossudovsky – 2006-08-02 The 9/11 Commission’s Incredible Tales Flights 11, 175, 77, and 93 - by Prof. David Ray Griffin – 2005-12-13 9/11 and the War on Terror: Polls Show What People Think 10 Years Later - by Washington’s Blog – 2011-09-10
  • PART  V Foreknowledge of 9/11   VIDEO: The SECRET SERVICE ON 9/11: What did the Government Know? Learn more on this week’s GRTV Feature Interview - by Kevin Ryan, James Corbett – 2012-04-10 9/11 Foreknowledge and “Intelligence Failures”: “Revealing the Lies” on 9/11 Perpetuates the “Big Lie” - by Prof. Michel Chossudovsky – 2011-09-14 “Foreknowledge” and “Failure to act” upholds the notion that the terrorist attacks (“act of war”) “waged by Muslims against America” are real, when all the facts and findings point towards coverup and complicity at the highest levels of the US government. Foreknowledge of 9/11 by Western Intelligence Agencies - by Michael C. Ruppert – 2012-08-21
  • PART XII Post 9/11 “Justice” IRAN ACCUSED OF BEING BEHIND 9/11 ATTACKS. U.S. Court Judgment, December 2011 (Havlish v. Iran) - by Julie Lévesque – 2012-05-11 U.S. Court Judgment, December 2011 (Havlish v. Iran) “American Justice”: The Targeted Assassination of Osama Bin Laden Extrajudicial executions are unlawful - by Prof. Marjorie Cohn – 2011-05-10 ALLEGED “MASTERMIND” OF 9/11 ON TRIAL IN GUANTANAMO: Military Tribunals proceed Despite Evidence of Torture - by Tom Carter – 2012-05-30 U.S. Military Drugged Detainees to Obtain FALSE Confessions Self-confessed 9/11 “mastermind” falsely confessed to crimes he didn’t commit - by Washington’s Blog – 2012-07-15 911 MILITARY TRIAL: Pentagon Clears Way for Military Trial of Five charged in 9/11 Attacks - by Bill Van Auken – 2012-04-06 Khalid Sheikh Mohammed’s trial will convict us all - by Paul Craig Roberts – 2009-11-25
  • PART VII 9/11 and the “Global War on Terrorism” (GWOT) Political Deception: The Missing Link behind 9-11 - by Michel Chossudovsky – 2002-06-20 On the morning of September 11, Pakistan’s Chief Spy General Mahmoud Ahmad, the alleged “money-man” behind the 9-11 hijackers, was at a breakfast meeting on Capitol Hill hosted by Senator Bob Graham and Rep. Porter Goss, the chairmen of the Senate and House Intelligence committees. 9/11 ANALYSIS: From Ronald Reagan and the Soviet-Afghan War to George W Bush and September 11, 2001 - by Michel Chossudovsky – 2010-09-09 Osama bin Laden was recruited by the CIA in 1979. The US spent millions of dollars to supply Afghan schoolchildren with textbooks filled with violent images and militant Islamic teachings.     The Central Role of Al Qaeda in Bush’s National Security Doctrine “Revealing the Lies” on 9/11 Perpetuates the “Big Lie” - by Michel Chossudovsky – 2007-07-12 September 11, 2001: America and NATO Declare War on Afghanistan NATO’s Doctrine of Collective Security - by Michel Chossudovsky – 2009-12-21   America’s Holy Crusade against the Muslim World. - by Michel Chossudovsky – 2010-08-30 What is now unfolding is a generalized process of demonization of an entire population group
  • Osamagate - by Michel Chossudovsky – 2001-10-09 The main justification for waging this war has been totally fabricated. The American people have been deliberately and consciously misled by their government into supporting a major military adventure which affects our collective future. The “Demonization” of Muslims and the Battle for Oil - by Michel Chossudovsky – 2007-01-04 Muslim countries possess three quarters of the World’s oil reserves. In contrast, the United States of America has barely 2 percent of total oil reserves.   Was America Attacked by Muslims on 9/11? - by David Ray Griffin – 2008-09-10 Much of US foreign policy since 9/11 has been based on the assumption that America was attacked by Muslims on 9/11.   New Documents Detail America’s Strategic Response to 9/11 Rumsfeld’s War Aim: “Significantly Change the World’s Political Map” - by National Security Archive – 2011-09-12
  • PART VIII The Alleged 9/11 Mastermind: The Life and Death of  Osama bin Laden Who Is Osama Bin Laden? - by Michel Chossudovsky – 2001-09-12   VIDEO: The Last Word on Osama Bin Laden - by James Corbett – 2011-05-24 Osama bin Laden: A Creation of the CIA - by Michel Chossudovsky – 2011-05-03 Interview with Osama bin Laden. Denies his Involvement in 9/11 Full text of Pakistani paper’s Sept 01 “exclusive” interview - 2011-05-09 Where was Osama on September 11, 2001? - by Michel Chossudovsky – 2008-09-11 On September 10. 2001, Osama was in a Pakistan military hospital in Rawalpindi, courtesy of America’s indefectible ally Pakistan Osama bin Laden, among the FBI’s “Ten Most Wanted Fugitives”: Why was he never indicted for his alleged role in 9/11? - by Michel Chossudovsky – 2006-09-17 Osama bin Laden: Already Dead… Evidence that Bin Laden has been Dead for Several Years - by Prof. David Ray Griffin – 2011-05-02 The Mysterious Death of Osama bin Laden: Creating Evidence Where There Is None - by Dr. Paul Craig Roberts – 2011-08-04 The Assassination of Osama bin Laden: Glaring Anomalies in the Official Narrative Osama was Left Handed… - by Felicity Arbuthnot – 2011-05-11 The Assassination of Osama Bin Laden - by Fidel Castro Ruz – 2011-05-07 Dancing on the Grave of 9/11. Osama and “The Big Lie” - by Larry Chin – 2011-05-05
  • PART  IX  ”False Flags”: The Pentagon’s Second 9/11 The Pentagon’s “Second 911″ “Another [9/11] attack could create both a justification and an opportunity to retaliate against some known targets” - by Michel Chossudovsky – 2006-08-10 The presumption of this military document, is that a Second 911 attack “which is lacking today” would usefully create both a “justification and an opportunity” to wage war on “some known targets Crying Wolf: Terror Alerts based on Fabricated Intelligence - by Michel Chossudovsky – 2006-08-20 This is not the first time that brash and unsubstantiated statements have been made regarding an impending terror attack, which have proven to be based on “faulty intelligence”.
  • PART X “Deep Events” and State Violence The Doomsday Project and Deep Events: JFK, Watergate, Iran-Contra, and 9/11 - by Prof. Peter Dale Scott – 2011-11-22 The Doomsday Project is the Pentagon’s name for the emergency planning “to keep the White House and Pentagon running during and after a nuclear war or some other major crisis.” JFK and 9/11 Insights Gained from Studying Both - by Dr. Peter Dale Scott – 2006-12-20 In both 9/11 and the JFK assassination, the US government and the media immediately established a guilty party. Eventually, in both cases a commission was set up to validate the official narrative. Able Danger adds twist to 9/11 9/11 Ringleader connected to secret Pentagon operation - by Dr. Daniele Ganser – 2005-08-27 Atta was connected to a secret operation of the Pentagon’s Special Operations Command (SOCOM) in the US. A top secret Pentagon project code-named Able Danger identified Atta and 3 other 9/11 hijackers as members of an al-Qaida cell more than a year before the attacks. 9/11, Deep State Violence and the Hope of Internet Politics - by Prof. Peter Dale Scott – 2008-06-11 The unthinkable – that elements inside the state would conspire with criminals to kill innocent civilians – has become thinkable… Al Qaeda: The Database. - by Pierre-Henri Bunel – 2011-05-12
  • PART XI Propaganda: Creating and Perpetuating the 9/11 Legend September 11, 2001: The Propaganda Preparation for 9/11: Creating the Osama bin Laden “Legend” - by Chaim Kupferberg – 2011-09-11 THE 9/11 MYTH: State Propaganda, Historical Revisionism, and the Perpetuation of the 9/11 Myth - by Prof. James F. Tracy – 2012-05-06   Al Qaeda and Human Consciousness: Al Qaeda, Al Qaeda…. An Incessant and Repetitive Public Discourse - by Prof. Michel Chossudovsky – 2012-03-24 9/11 Truth, Inner Consciousness and the “Public Mind” - by James F. Tracy – 2012-03-18
  • PART VI Insider Trading and the 9/11 Financial Bonanza 9/11 Attacks: Criminal Foreknowledge and Insider Trading lead directly to the CIA’s Highest Ranks CIA Executive Director “Buzzy” Krongard managed Firm that handled “Put” Options on UAL - by Michael C. Ruppert – 2012-08-13 The 9/11 Attacks on the World Trade Center (WTC): Unspoken Financial Bonanza - by Prof Michel Chossudovsky – 2012-04-27 SEPTEMBER 11, 2001: Insider Trading 9/11 … the Facts Laid Bare - by Lars Schall – 2012-03-20 Osama Bin Laden and The 911 Illusion: The 9/11 Short-Selling Financial Scam - by Dean Henderson – 2011-05-09
  • PART XIII 9/11 Truth Revealing the Lies,  Commemorating the 9/11 Tragedy VIDEO: Commemorating the 10th Anniversary of 9/11 - by Prof. Michel Chossudovsky – 2011-09-01 VIDEO: AFTER 9/11: TEN YEARS OF WAR Special GRTV Feature Production - by James Corbett – 2011-09-08
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    Wow!
Paul Merrell

Obama's "Catastrophic Defeat" in Ukraine » CounterPunch: Tells the Facts, Nam... - 0 views

  • “We are currently witnessing an epic and historic event. The Ukrainian regular army and the punitive battalions are suffering a catastrophic defeat to the south of Donetsk…..It still is not quite clear how the Junta intends to avoid a complete defeat here…. By squandering the most combat-capable brigades in systematic offensive operations, the Junta sustained enormous losses and at the same time suffered a crushing, purely military defeat. The southern front has collapsed.” – The Southern Front Catastrophe – August 27, 2014″, Colonel Cassad, Military Briefing, Novorossiya, Ukraine “The reports out of Novorussia (New Russia) are nothing short of incredible… sources are reporting that Novorussian forces have bypassed Mariupol from the north and have entered the Zaporozhie region!” – News from the Front, Vineyard of the Saker Barack Obama has pushed Ukraine to the brink of political, economic and social collapse. Now he wants to blame Russia for the damage he’s done. It’s absurd. Moscow is in no way responsible for Ukraine’s descent into anarchy. That’s all Washington’s doing, just as Iraq, Afghanistan, Libya, and now Syria were Washington’s doing. If you want to blame someone, blame Obama.
  • “We are currently witnessing an epic and historic event. The Ukrainian regular army and the punitive battalions are suffering a catastrophic defeat to the south of Donetsk…..It still is not quite clear how the Junta intends to avoid a complete defeat here…. By squandering the most combat-capable brigades in systematic offensive operations, the Junta sustained enormous losses and at the same time suffered a crushing, purely military defeat. The southern front has collapsed.” – The Southern Front Catastrophe – August 27, 2014″, Colonel Cassad, Military Briefing, Novorossiya, Ukraine “The reports out of Novorussia (New Russia) are nothing short of incredible… sources are reporting that Novorussian forces have bypassed Mariupol from the north and have entered the Zaporozhie region!” – News from the Front, Vineyard of the Saker Barack Obama has pushed Ukraine to the brink of political, economic and social collapse. Now he wants to blame Russia for the damage he’s done. It’s absurd. Moscow is in no way responsible for Ukraine’s descent into anarchy. That’s all Washington’s doing, just as Iraq, Afghanistan, Libya, and now Syria were Washington’s doing. If you want to blame someone, blame Obama.
  • Ukraine’s troubles began when the US State Department toppled the elected president in February and replaced him with a compliant stooge who agreed to follow Washington’s directives. The new “junta” government quickly launched a full-blown war against Russian-speaking Ukrainians in the east which split the civilian population and drove the country to ruin. The plan “pacify” the East was concocted in Washington, not Kiev and certainly not Moscow.
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  • Donetsk and Lugansk have formed militias and taken the war to the enemy. They’ve engaged Obama’s proxy-army on the battlefield and pounded it into mincemeat. That’s why Obama deployed his propagandists to lie about the fictitious “Russian invasion”. The administration needs a diversion because the Novorussia forces (aka-the “pro Russia separatists”) are kicking the holy crap out of Obama’s legions. That’s why Washington and Kiev are in full panic-mode, because none of this was supposed to happen. Obama figured the army would put down the insurrection, crush the resistance, and move him one step closer to his goal of establishing NATO bases and missile defense systems on Russia’s western flank. Well, guess what? It’s not playing out that way and it probably never will. The Novorussia fighters are too tough, too smart and too motivated to be one-upped by Obama’s feckless troopers. (Check out this short video and you’ll see why the rebels are winning: Vineyard of the Saker)
  • Putin hasn’t sent tanks and artillery into Ukraine. He doesn’t need to. The militias are loaded with battle-hardened veterans who know how to fight and who are quite good at it. Just ask Poroshenko whose army has been taking it in the shorts for the last couple of weeks. Check out this blurb in Thursday’s Itar Tass: “Over the week of August 16-23, the self-defense fighters of the Donetsk and Luhansk People’s Republics seized 14 T-64 tanks, 25 infantry fighting vehicles, 18 armored personnel carriers, one armored reconnaissance and patrol vehicle, one Uragan multiple launch rocket system, two Gvozdika self-propelled artillery guns, four D-30 howitzers, four mortars, one ZU-23-2 air defense system and 33 vehicles.” (East Ukraine militias seize large amount of Ukrainian armor, Itar Tass) Get the picture? The Ukrainian army is getting beaten to a pulp, which means that Obama’s glorious “pivot strategy” just slammed into a brick wall.
  • Bottom line: Russia has not invaded Ukraine. The propagandists in the media are just trying to hide the fact that the Novorussia Army Forces (NAF; aka-the pro Russia separatists) are kicking ass and taking names. That’s what’s really going on. That’s why Obama and his gaggle of miscreant neocons are in a furor. It’s because they don’t know what to do next, so they’ve returned to their default position on every issue; lie like hell until they settle on a plan.
  • So, who do you believe; Kerry or the facts? And who are you going to believe this time; “Aluminum tubes” Gordie or Organization for Security and Co-operation in Europe (OSCE) monitor Andrey Kelin who said yesterday: “We have said that no Russian involvement has been spotted, there are no soldiers or equipment present.” “Accusations relating to convoys of armored personnel carriers have been heard during the past week and the week before that. All of them were proven false back then, and are being proven false again now.” (RT) Repeat: “No Russian involvement”. All the accusations “were proven false.” “False” as in fake, phony, propaganda, bunkum, lies which, by the way, appears to be Gordon’s area of expertise.
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    Don't miss the video at http://vineyardsaker.blogspot.com/2014/08/watershed-press-conference-by-top.html It's a press conference by Alexander V. Zakharchenko, Chairman of The Council of Ministers of The Donetsk National Republic, describing the rout of coup government forces and the reconstitution of the Novorussia militias into a national army. Russian with English subtitle translation.  According to him the DNR army has killed thousands of Ukrainian soldiers, but the coup government is notifying family members that they are "missing in action," even when the DNR transfers the bodies to Ukraine. He also describes encountering coup government soldiers wearing the insignia of the Galacia SS Division, a Ukraine collaborators' division of the Nazi World War II Waffen SS. (The coup government includes in its leadership neo-Nazis, and neo-Nazi militias are fighting on the side of the coup government.)  
Gary Edwards

12 Charts That Show The Permanent Damage That Has Been Done To The U.S. Economy | Silve... - 0 views

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    "Most people that discuss the "economic collapse" focus on what is coming in the future.  And without a doubt, we are on the verge of some incredibly hard times.  But what often gets neglected is the immense permanent damage that has been done to the U.S. economy by the long-term economic collapse that we are already experiencing. But because unprecedented levels of government debt and reckless money printing by the Federal Reserve have bought us a very short window of relative stability, most Americans don't seem too concerned about our long-term problems. They seem to have faith that our "leaders" will be able to find a way to muddle through whatever challenges are ahead.  Hopefully the following 12 charts below will be a wake up call. The last major wave of the economic collapse did a colossal amount of damage to our economic foundations, and now the next major wave of the economic collapse is rapidly approaching."
Gary Edwards

RSA Animate - Crises of Capitalism - YouTube - 0 views

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    Excellent white board illustrated discussion on capitalism and the financial crisis.   I have a question though?  How do you discuss capitalism without also discussing borrowing, interest rates and dividends?  Seriously.  No mention of interest rates?  No mention of the relationship between GOLD, commodities and fiat money?   Yes, the Banksters collapsed the world economy with the willing consent of corrupt crony politicians.   The corruption and practice of crony corporatism is NOT Capitalism!  It's fascism.   Nor are the bailouts of the Banksters and big unions capitalism!  In capitalism there is no such thing as a government bailout or two big too fail.  Capitalism would have put the Banksters into the dirt without blinking. There is an interesting transection where the cartoonist suggest that global corporatism demanded capital from creative financiers.  And that caused the the problem.  Seems the Banksters got too too creative. I disagree with this perspective, and am left wondering how the connection between global commerce and creative "casino" financial instruments are natural consequences of each other?  It's a commonly held belief that global explosion was due to the a Reagan - Thatcher conservative revolution where one of the key corporate organizing principles was that of the "franchise" backed by IPO style public stock offerings.  Clowns like Warren Buffett gobbled up tons of Coca Cola and McDonalds stock, waiting for global trade barriers to fall in the wake of Reagan - Thatcher liberty.  When the Soviet Union collapsed, the "walls" truly did come down.  And USA corporations were uniquely positioned and structured to roll out globally. That doesn't have anything to do with the kind of creative casino gambling that brought the world to it's knees.  What do exotic financial derivatives have to do with funding corporations?  Yes, they were used to hedge financial positions as sovereign governments were maddeningly borrowing and s
Gary Edwards

Why we are on the brink of the greatest Depression of all time  | Fox News - 0 views

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    Another one of those must read articles.  This time from -libertarian Wayne Allen Root.  Examining the facts and connecting the dots - big time. "Everywhere from FoxNews.0com to CNBC.com, I suddenly see commentators warning of pe0nding doom, economic collapse, and a new Great Depression. Weslcome to my club. Perhaps America's politicians and economists should have paid attention to an entrepreneur and small businessman that has been warning of economic collapse and a new Great Depression publicly for over two years.  More importantly, none of the current commentaries mention the "why's" of this slow motion economic collapse...beyond the obvious -- mountains of deficit and debt. None of them mention the dysfunctional structure of the current U.S. economy and the massive changes in the work ethic and mindset of the average American.  I am a successful small businessman and a patriot who loves America and always sees its greatness. I am also an optimistic, positive thinker who always sees the glass half full.  But not this time.  This time we are in such deep trouble, the only solution is a radical restructuring of the politicians, the economy, and the way we view personal responsibility versus government handouts. If those changes don't come then we are facing a long decline and the eventual end of America.  The economy is crumbling. The situation is turning more hopeless by the hour. The more government gets involved, the worse it gets. Coincidence? - This time the results are going to be dramatically worse than 1929. This time we are facing The Greatest Depression ever."
Gary Edwards

19 Reasons Why The Federal Reserve Is At The Heart Of Our Economic Problems - 0 views

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    Nice summary with a chilling conclusion. I can't believe i've been so wrong about the financial collapse and the End of the American Dream. In 2008 i set out to discover why the September financial collapse occurred. This was the beginning of my Diigo "Socialism and the End of the American Dream" list. Since then however, i've come to see that it isn't ideology that's behind the financial collapse and the assault on the American Constitution, Rule of Law, and the principles of individual liberty and freedom described in our Declaration of Independence. No, IT'S ALL ABOUT THE MONEY! Mark Levin argues eloquently and with great passion and insight that "Statism" is the problem. He argues that socialism, progressivism, communism and fascism are just forms of centralized government, authority, and control. For Mark, it's all about power. And that's Tyranny of the highest order. Today though, i see things differently. It's all about the money. And with that money comes the power to dictate, control and seize property at will. The Banksters are behind it all, and debt is their doomsday nuclear weapon of choice. Baron Von Rothschild once famously said that WAR is the most expensive endeavor governments can engage in. War means borrowing from banksters. It means debt. The problem for the Banksters has long been the lesson of Charlemagne and Napoleon: There is no way for the Banksters to collect their debt (and interest) from the victor. The only way to force Napoleon to pay was to create an opposing army (thanks to the ruling elites of England and the Duke of Wellington - who were not threatened by Napoleon. And since then, the Bansters have been beholden to the Brittish ruling elites). Balance of Power and the magic of Francois Metternich's Treaty of Vienna worked for almost 100 years after the defeat of Napoleon. The ruling nobility of Europe came apart with WWI, but the Banksters played both ends against the middle, and came out on top.
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    i hate it when Diigo clips my comments!#!$$ . No warning. The above was clipped short so here's the bottom line: It's not the ideology. It's the money and the power.
Gary Edwards

Can Americans Escape the Deception? - 0 views

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    I've been reading Paul Craig Roberts since high school, when i used to clip his backpage columns in NewsWeek magazine. These days, you have to go to his blog to get the truth. But what a truth it is! Incredible, forceful but presented only as PCR can do. His wake up call to America is not about Republicans or Democrats. It's about our liberty and the all out assault our government, socialist and conservatives alike, has launched on the Constitution. Amerika! This is what it comes to. It's also why i'm a libertarian. Read it and weep. Excerpt is from the 9/11 section. excerpt: In a real investigation, the 9/11 evidence would not have been illegally destroyed, and the investigation would have been conducted by experts, not by government agencies assigned a cover-up and by political hacks. The NIST report is abject nonsense. It explains nothing. It is a fabricated computer simulation of a non-event. The co-chairmen and legal counsel of the 9/11 Commission later wrote books in which they stated that information was withheld from the commission, the military lied to the commission, and the commission "was set up to fail." Yet, these astounding admissions by the leaders of the 9/11 Commission had no impact on Congress, the presstitute media, or the public. All heads were in the sand. Please, whatever you do, don't make us emotional weaklings face the facts. More than one hundred firefighters, police, first responders, and building maintenance personnel report hearing and experiencing scores of explosions in the twin towers, including powerful explosions in the sub-basements prior to the collapse of the towers. Distinguished scientists, authors of many peer-reviewed scientific papers, report finding unreacted nano-thermite in the dust from the towers, tested it for its explosive and high-heat producing ability, and reported the unequivocal results. Seventeen hundred architects and engineers have testified in a petition to Congress that the th
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    For a detailed and fully referenced study of how 9-11 Commission Executive Director Philip Zelikow's conflict of interest and how he kept Commission members in the dark and sabotaged the Commission report, see http://tinyurl.com/6tdfc56
Gary Edwards

AEI - The Error at the Heart of the Dodd-Frank Act - 0 views

  • The underlying assumption of the Dodd-Frank Act (DFA) is that the 2008 financial crisis was caused by the disorderly bankruptcy of Lehman Brothers.
  • This is evident in the statements of officials and the principal elements of the act, which would tighten the regulation of large financial institutions to prevent their failing, and establish an "orderly resolution" system outside of bankruptcy if they do.
  • The financial crisis, however, was caused by the mortgage meltdown, a sudden and sharp decline in housing and mortgage values as a massive housing bubble collapsed in 2007. This scenario is known to scholars as a "common shock"—a sudden decline in the
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  • 27 million loans—were subprime or otherwise weak and risky loans.
  • The reason for this was the US government's housing policy, which—in the early 1990s—began to require that government agencies and others regulated or controlled by government reduce their mortgage underwriting standards so borrowers who had not previously had access to mortgage credit would be able to buy homes. The government-sponsored enterprises Fannie Mae and Freddie Mac, the Federal Housing Administration, and banks and savings and loan associations (S&Ls) subject to the Community Reinvestment Act were all required to increase their acquisition of loans to homebuyers at or below the median income in their communities. Often, government policies required Fannie, Freddie, and the others to acquire loans to borrowers at or below 80 percent, and in some cases 60 percent, of median income.
  • Sometimes it is argued that the Troubled Asset Relief Program (TARP) prevented more failures. That seems highly unlikely. The first funds were made available under TARP on October 28, 2008, about six weeks after the panic following Lehman's failure. By that time, any firm that had been mortally wounded by Lehman's collapse would have collapsed itself. Moreover, most of the TARP funds were quickly repaid by the largest institutions, and many of the smaller ones, only eight months later, in mid-June 2009. This is strong ¬evidence that the funds were not needed to cover losses coming from the Lehman bankruptcy. If there were such losses, they would still have been embedded in the balance sheets of those institutions. If the funds were needed at all—and many of the institutions took them reluctantly and under government pressure—it was to restore investor confidence that the recipients were not so badly affected by the common shock of the decline in housing and mortgage values that they could not fund orderly withdrawals, if necessary. However, even if we assume that TARP funds prevented the failure of some large financial institutions, it seems clear that the underlying cause of each firm's weakness was the decline in the value of its MBS holdings, and not any losses suffered as a result of Lehman's bankruptcy.
  • This analysis leads to the following conclusion. Without a common shock, the failure of a single Lehman-like firm is highly unlikely to cause a financial crisis. This conclusion is buttressed by the fact that in 1990 the securities firm Drexel Burnham Lambert—then, like Lehman, the fourth largest securities firm in the United States—was allowed to declare bankruptcy without any adverse consequences for the market in general. At the time, other financial institutions were generally healthy, and Drexel was not brought down by the failure of a widely held class of assets. On the other hand, in the presence of a common shock, the orderly resolution of one or a few Lehman-like financial institutions will not prevent a financial crisis precipitated by a severe common shock.
  • In effect, by giving the government the power to resolve any financial firm it believes to be failing, the act has added a whole new policy objective for the resolution of failing firms. Before Dodd-Frank, insolvency law embodied two basic policies—retain the going concern value of the firm and provide a mechanism by which creditors could realize on the assets of an insolvent firm that cannot be saved.
  • DFA will have important adverse effects on ¬insolvency law.
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    The underlying assumption of the Dodd-Frank Act (DFA) is that the 2008 financial crisis was caused by the disorderly bankruptcy of Lehman Brothers. This is evident in the statements of officials and the principal elements of the act, which would tighten the regulation of large financial institutions to prevent their failing, and establish an "orderly resolution" system outside of bankruptcy if they do. The financial crisis, however, was caused by the mortgage meltdown, a sudden and sharp decline in housing and mortgage values as a massive housing bubble collapsed in 2007. This scenario is known to scholars as a "common shock"-a sudden decline in the value of a widely held asset-which causes instability or insolvency among many financial institutions. In this light, the principal elements of Dodd-Frank turn out to be useless as a defense against a future crisis. Lehman's bankruptcy shows that in the absence of a common shock that weakens all or most financial institutions, the bankruptcy of one or a few firms would not cause a crisis; on the other hand, given a similarly severe common shock in the future, subjecting a few financial institutions to the act's orderly resolution process will not prevent a crisis. Apart from its likely ineffectiveness, moreover, the orderly resolution process in the act impairs the current insolvency system and will raise the cost of credit for all financial institutions. 
Gary Edwards

PETER SCHIFF: The Housing Bust Was Just A Preview For The Coming Catastrophe - Business... - 0 views

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    Peter Schiff talks about his new book "The Real Crash: America's Coming Bankruptcy, How to Save Yourself and Your Country".  I caught the Coast-to-Coast "Financial Crisis Special" interview with Peter earlier this week where he spoke on the "Real Crash" issues.  Stunning stuff.  His hour on Coast was followed by Lindsey Williams who pointed out that the New World Order - Illuminati - Bankster trigger point would be signaled by a collapse in the derivatives market. The derivatives market is now over a quadrillion dollars of  casino style gambling.  This is where Banksters make huge bets on things like whether or not interest rates will go up or down.  Then they take out insurance to cover their bets, which further compounds the cost.  Recent events like the Jon Corzine MF Global gamble that the Federal Reserve Bankster Cartel would backstop explosive European sovereign bankster debt are the first indications of collapse in the derivatives market.  We now know that JP Morgan placed similar bets on a European bailout by the Federal Reserve and World Bank, and lost big.  The only difference is that Corzine robbed his clients personal accounts to cover his bets. While Schiff argues the facts on the table, the "what", Lindsay argued the "why"; claiming that this escalating debt mess is all by design.  Lindsay claims that an operational fundamental of the New World Order elites is to first overturn the USA Constitution.  Using a Machiavellian Principle known as, "out of chaos comes order", they seek to de-stabilize and overthrow the USA Constitutional Republic using massive and crushing debt to first destroy the dollar currency.  This will create massive chaos requiring martial law and government seizure of private property and production. Peter Schiff warns that the government is driving us deeper into debt at exactly the time we should be saving and investing those savings in future private sector productivity.  Lindsay argues that this is all by desig
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