From the article:
“Rather than trying to spur private-sector spending through asset purchases or interest-rate changes, central banks, such as the Fed, should hand consumers cash directly…. Central banks, including the U.S. Federal Reserve, have taken aggressive action, consistently lowering interest rates such that today they hover near zero. They have also pumped trillions of dollars’ worth of new money into the financial system. Yet such policies have only fed a damaging cycle of booms and busts, warping incentives and distorting asset prices, and now economic growth is stagnating while inequality gets worse. It’s well past time, then, for U.S. policymakers — as well as their counterparts in other developed countries — to consider a version of Friedman’s helicopter drops. In the short term, such cash transfers could jump-start the economy… The transfers wouldn’t cause damaging inflation, and few doubt that they would work. The only real question is why no government has tried them”…
- It Begins: Council On Foreign Relations Proposes That “Central Banks Should Hand Consumers Cash Directly” (ZeroHedge, Aug 26, 2014):
… A broad-based tax cut, for example, accommodated by a program of open-market purchases to alleviate any tendency for interest rates to increase, would almost certainly be an effective stimulant to consumption and hence to prices. Even if households decided not to increase consumption but instead re-balanced their portfolios by using their extra cash to acquire real and financial assets, the resulting increase in asset values would lower the cost of capital and improve the balance sheet positions of potential borrowers. A money-financed tax cut is essentially equivalent to Milton Friedman’s famous “helicopter drop” of money
- Ben Bernanke, Deflation: Making Sure “It” Doesn’t Happen Here, November 21, 2002
A year ago, when it became abundantly clear that all of the Fed’s attempts to boost the economy have failed, leading instead to a record divergence between the “1%” who were benefiting from the Fed’s aritficial inflation of financial assets, and everyone else (a topic that would become one of the most discussed issues of 2014) and with no help coming from a hopelessly broken Congress (who can forget the infamous plea by a desperate Wall Street lobby-funding recipient “Get to work Mr. Chariman”), we wrote that “Bernanke’s Helicopter Is Warming Up.” Continue reading »
… and Europe:
H/t reader squodgy:
“Being a former member of the chosen few, he rejected their ways and chose a form of Christianity.
He knows how the corrupt jews think and plan, and so far, his assessment has been spot on.
This next forecast is worrying, not least because it proves where all the bail out money has gone…..and it isn’t to the middle and lower classes…..”
Bail-ins are coming to a country near you.
Brother Nathanael’s YouTube channel is blocked in several countries, which is why I have provided some alternative uploads for you.
Prepare for collapse.
Physical gold and silver will protect you from bail-ins, but only real preparedness (food, water etc.) will keep you and your family alive.
They don’t need to confiscate your guns, all they need to do is collapse the system and head to their DUMBS …
Most people have only food for 3 days and then the only thing they have left is guns and ammo, lots of ammo.
And then what?
In 2002 one of Dr. Rima E. Laibow’s patients, a head of state, told her:
“It’s almost time for the great culling to begin.”
Dr. Rima E. Laibow’s husband is Albert “Bert” Newton Stubblebine III a retired Major General in the United States Army. He was the commanding general of the United States Army Intelligence and Security Command from 1981 to 1984, when he retired from the Army.
What she really is, is a sad elite puppet.
- Janet Yellen Is An Insult To Americans (ZeroHedge, Aug 22, 2014):
By Raul Ilargi Meijer of The Automatic Earth
Janet Yellen Is An Insult To Americans
If you’re a girl and you’re old and you’re grey and you’re the size of a hobbit, who’s going to get angry at you? If your predecessor had all the qualities anyone could look for in a garden gnome, and his predecessor was known mainly as a forward drooling incoherent oracle, how bad could it get? Think they select Fed heads them on purpose for how well they would fit into the Shire?
Janet Yellen has a serious problem: the story no longer fits. The Fed under Bernanke said in its forward guidance that it would taper if certain job market conditions were met. And now they have been, at least on paper, but Yellen knows only too well that those are not the real numbers [ZH: as we explicitly warned would happen in December 2012]. Continue reading »
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- The Italian Job: How Borrowing And Printing Lead To An Economic Dead End (David Stockman’s Contra Corner, Aug 21, 2014):
Earlier this week Bloomberg published a devastating chart showing real hourly wage growth for the first 60 months of every cycle going back to 1949. The 11 cycle average gain was 9% and the largest was 19% a half century back.
Fast forward to the 60 months of ZIRP and QE since the Great Recession officially ended in June 2009, however, and you get a drastically different picture: Real hourly wages have risen by just 0.5%, and in the great scheme of things that’s a rounding error.
Surely the above chart is also flat-out proof that massive money printing doesn’t work. After all, reflating wages, jobs and incomes is what the monetary politburo claims it’s all about. Indeed, the Fed has insouciantly cast a blind eye to the massive bubbles building everywhere in the financial system, and has kept money market rates relentlessly at zero for six years running on the grounds that it is not yet done “stimulating” the labor market.
So why does this abysmally failed and dangerous experiment continue unabated—as Yellen will undoubtedly confirm at Jackson Hole? Self-evidently, it is irresistibly convenient to both Wall Street and Washington. The former gorges on a massive diet of carry trade gambling windfalls thanks to ZIRP and the Greenspan/Bernanke/Yellen “put”; and the latter gets a fiscal get-out-of-jail-free card owing to the Fed’s massive repression of interest rates. Indeed, with the public debt now topping $17.7 trillion, the implicit (and fraudulent) debt service relief from current ultra-low interest rates amounts to upwards of $500 billion per year. Continue reading »
- Car Repos Soar 70% As Auto Subprime Bubble Pops; “It’s Contained” Promises Fed (ZeroHedge, Aug 20, 2014):
The auto loan subprime bubble may be the latest to burst (after student loans) as the rate of car repossessions jumped 70.2 percent in the second quarter, with much of that increase coming from finance companies not run by automakers, banks or credit unions. “The number of delinquencies and repossessions rising is what we would expect as the auto industry sells more vehicles,” “But this slight uptick is one to keep an eye on.” The surge in delinquencies and repossessions is being driven primarily by borrowers with subprime and deep subprime credit scores.
- 14 Reasons Why The U.S. Economy’s Bubble Of False Prosperity May Be About To Burst (Economic Collapse, Aug 14, 2014):
Did you know that a major event just happened in the financial markets that we have not seen since the financial crisis of 2008? If you rely on the mainstream media for your news, you probably didn’t even hear about it. Just prior to the last stock market crash, a massive amount of money was pulled out of junk bonds. Now it is happening again. In fact, as you will read about below, the market for high yield bonds just experienced “a 6-sigma event”. But this is not the only indication that the U.S. economy could be on the verge of very hard times. Retail sales are extremely disappointing, mortgage applications are at a 14 year low and growing geopolitical storms around the world have investors spooked. For a long time now, we have been enjoying a period of relative economic stability even though our underlying economic fundamentals continue to get even worse. Unfortunately, there are now a bunch of signs that this period of relative stability is about to end.
The following are 14 reasons why the U.S. economy’s bubble of false prosperity may be about to burst: Continue reading »
- Three Chart Alarm: The Fed Has Set-Up The Corporate Bond Market For A Big Fall (David Stockman’s Contra Corner, Aug 5, 2014):
The three charts below, which appeared in this morning’s Wall Street Journal, are still another reminder that the Fed’s heedless fueling of the third financial bubble this century has done enormous damage to the internals of financial markets. In this case, investors and savers being brutally punished by ZIRP were herded into bonds funds in a desperate scramble for yield. Accordingly, bond fund assets soared from $1.6 trillion at the time of the financial crisis to $4.1 trillion today.
Yet the market’s structural liquidity condition has gone in the opposite direction. Dealer inventories of corporate bonds have plummeted by nearly 75% from pre-crash levels, meaning that the ratio of dealer inventories to bond fund assets has virtually been vaporized. In 2008 that ratio stood at 15%, but presently it is only 1.5%. Likewise, daily trading volumes have been cut in half since the crisis.
The implication is no mystery. When the financial markets eventually succumb to a “risk-off” selling panic, the corporate bond market will gap down violently. As one astute analyst put it:
“Everyone is hoping to be first through the exit,” said Matt King, global head of credit strategy at Citigroup in London. “By definition, that’s not possible.”
Stated differently, the Fed’s explicit campaign to force grandpa out of CDs and into corporate bond funds has caused a vast mis-pricing of liquidity. In a healthy free market, bond fund yields would carry a significant discount for illiquidity, and issuers of riskier corporate credits would face far higher yield spreads vs. the 10-year treasury benchmark.
So once again, the serial bubble machine in the Eccles Building has generated a huge unnatural market deformation that is inherently unstable and increasingly fragile. When the break comes, years worth of “extra” yield will be wiped-out in a traumatic drop in bond prices caused by a panic at the exit ramp.
Published on Aug 3, 2014
Full description and discussion at: http://www.peakprosperity.com/podcast…
David Stockman, former director of the OMB under President Reagan, former US Representative, best-selling author of The Great Deformation, and veteran financier is an insider’s insider. Few people understand the ways in which Washington DC, The Fed, and Wall Street work and intersect better than he does.
He’s extremely concerned by the “perfect storm” he sees of concurrent failures in US policy across foreign, monetary, economic, and fiscal fronts.
- Deutsche Bank “Raises The Warning Flag”: What The Most Important Chart For The Market Reveals (ZeroHedge, Aug, 4, 2014):
“The risk sell-off we’ve seen in recent weeks frustrates us a little as the chart we’ve published most this year has pretty much predicted that tougher times would come around July. We’ve been paying it a lot of attention for over a year now but decided to wait until the autumn before we raised the warning flags. The chart in question (included in today’s pdf) is the one showing the Fed balance sheet and the S&P 500 (as a proxy for risk generally). As you can see, since the Fed balance sheet was used as an aggressive policy tool post-GFC, the graph suggests that the S&P 500 is well correlated with the size of the Fed balance sheet… This is important as virtually all of the mega rally in the last 5 years has come in the Fed balance sheet expansion periods.” – Deutsche Bank
- Ron Paul: Stocks are in a bubble and will crash (CNBC, July 29, 2014):
Ron Paul, the former U.S. representative from Texas and perhaps America’s most popular libertarian voice, has long said that the nation’s monetary and fiscal policies would result in massive inflation. According to the common measures of inflation, this has not yet occurred. But Paul maintains that the inflation he has warned of has indeed come to fruition in asset prices, and that once it unravels, a market crash will ensue. Continue reading »
- The Rot Within, Part II: Inflation Is Not “Growth” (OfTwoMinds, July 22, 2014):
Just as the Federal Reserve cannot directly force you to stick the needle of monetary heroin (debt) into your arm, it also can’t force employers to pay employees more.
The official policy of the Central Bank (Federal Reserve)/government is: inflation is necessary for “growth,” i.e. economic expansion. The unstated reason for this official support of inflation is that it’s easier for borrowers to service their debts as their income inflates.
- The Coming Crash Is Simply the Normalization of a Mispriced Market (OfTwoMinds, July 17, 2014):
The correlation between the Fed’s monetary heroin production and the stock market will break down as the market normalizes.
In the spirit of calling things what they are, longtime correspondent Harun I. explains that market crashes are simply distorted/mispriced economies attempting to normalize.
Here’s Harun’s commentary:
- If This Keeps Up, They Will Have To Start Putting Armed Guards On Food Trucks (Economic Collapse, July 16, 2014):
The basic necessities in life just keep getting more expensive. On Tuesday, Hershey announced that the price of all of their chocolate bars is going to go up by about 8 percent. That is particularly distressing to me, because I am known to love chocolate. But if it was just chocolate that was becoming significantly more expensive perhaps that would be okay. Last month, it was coffee. J.M. Smucker, one of the largest coffee producers in the United States, announced that it planned to raise coffee prices by about 9 percent. And Starbucks has announced a bunch of price increases across the board on their coffee products. Of course we could all survive without chocolate and coffee, but as you will see below just about every food category is becoming more expensive. If this keeps up, could we eventually see armed guards in grocery stores and on food trucks? Continue reading »
- Why We’re Doomed: Interest and Debt (Washington’s Blog, July 15, 2014):
Even if the economy were growing at a faster pace, it wouldn’t come close to offsetting the interest payments on our ever-expanding debt.
If you want to know why the Status Quo is unsustainable, just look at interest and debt. These are not difficult to understand: debt is a loan that must be paid back or discharged/written off and the loss absorbed by the lender. Interest is paid on the debt to compensate the owner of the money for the risk of loaning it to a borrower.
It’s easy to see what’s happening with debt and the real economy (as measured by GDP, gross domestic product): debt is skyrocketing while real growth is stagnant. Put another way–we have to create a ton of debt to get a pound of growth.
There is no other way to interpret this chart.
source: Acting Man
The Status Quo has only survived this crushing expansion of debt by dropping interest rates to historic lows. This is a chart of the yield on the 10-year Treasury bond, which reflects the extraordinary decline in interest rates over the past two decades. Continue reading »
- “Waiting For Armageddon” – Say It Isn’t So? (Zerohedge, July 11, 2014):
Brent Johnson, of Santiago Capital, provides a brief but broad overview of the state of the state in the world’s precious metals markets (and monetary policy implications). Often accused of “waiting for Armageddon”, Johnson is quick to note that he would love to be wrong… “If I thought it possible to carry out the next 40 years the same as the last – by sticking to the status quo – I’d do it.” But it’s not… and no matter how many “say it isn’t so” you hear from the mainstream, it is inevitable (when not if). Simply put, he warns, if you do have to have capital markets exposure – make sure you have insurance – you need it now more than ever.
Full presentation below…
Watch the presentation HERE.
- Is The Fed Going To Attempt A Controlled Collapse? (NotQuant, July 8, 2014):
As most Fed watchers know, last week was interesting because Janet Yellen, speaking at IMF came out and said something quite surprising. In a nutshell, she said “It’s not the Fed’s job to pop bubbles”. While many market participants immediately took this to mean, “To the moon, Alice!” and started buying equities hand over fist, there’s another possible explanation for Mrs. Yellen’s proclamation of unwillingness: The Fed could be preparing to do exactly what it said it wouldn’t.
Here’s a quick re-cap of events: In the recently released Annual Report of the BIS: Bank for International Settlements (commonly thought of as the “central bank’s central bank”) the BIS made a rather ominous recommendation to it’s member banks: Pop this bubble now. Their specific language wasn’t quite so direct, but the message was just as clear. Continue reading »
H/t reader squodgy:
“Like I said…all banksters are in it together to look after each other.
The crunch is imminent, no doubt.”
There is neither real criticism from German politicians, nor any visible efforts to return German gold held in the US, so it seems that US controls Germany, economic analyst Michael Mross told RT.
In one of its recent reports Bloomberg claimed that Germany decided not to repatriate its gold reserves from the US, instead the Bundesbank issued an official statement that underscores it’s “trust” in its American partners. According to Bloomberg, Germany gave up after repatriating just 5 tons of gold, though earlier it was told that it would get all the German gold back by 2020.
RT: What’s really behind Germany’s efforts to get its gold reserves back?
Michael Mross: These German efforts to get back gold reserves are not really there. They are talking about it but it is only a simple and ridiculous theatre in my opinion. I cannot see any effort to do it. What we have is lack to re-transport or take back, 300 tons before 2020, but also this is ridiculous – last year they took back only 37 tons. At the end of the day, it is to make the public calm, but it is not really an effort to take back the gold. Continue reading »
H/t reader M.G.:
“You need to read to the last sentence to get what I have been saying for months. Less than half the world international transactions are now completed in US dollars……..”
- Stiglitz: I’m ‘very uncomfortable’ with current stock levels (CNBC, July 7, 2014):
Nobel Prize-winning economist Joseph Stiglitz said on Monday he is “very uncomfortable” with current stock market levels, arguing they do not equal a strong economic recovery in the United States.
The Dow breached 17,000 points on Thursday before the U.S. markets closed for the long July Fourth weekend. The jump came after the U.S. government reported the economy created a better-than-expected 288,000 jobs in June and the unemployment rate fell to 6.1 percent.
“The reason the stock market is high, in part, is that interest rates are low, wages are low and the emerging markets are still growing much faster than the U.S. economy, let alone Europe,” Stiglitz said. He pointed to the fact that many U.S.-listed multinationals are increasingly getting a large chunk of their profits from emerging markets. Continue reading »
H/t reader M.G.:
“How they are white washing rate hikes”
“Suddenly, higher interest rates are a good thing. Rubbish about hiring, the way they twist the numbers is criminal………..
This is what I have been worried about, greedy bankers are going after the higher level of the remaining middle class. These are the folks sitting on multiple properties which they owe more on than they are currently worth……still waiting for that so-called recovery that just isn’t happening.
The FED is a privately held bank, and they serve the greedy, not the nation. They are now digging in their tentacles more deeply. The US has no control of the FED. The worst thing, as my friend who has infinite unknown has said again and again, is the creation of such a monster.“
From the article:
“Continued labor market improvements alongside a pickup in second-half growth …”
And yes, you really can’t make this stuff up!
- Welcome to the Recovery (New York Times, by Timothy Geithner, August 2, 2010)
And as I’ve said before …
‘Recovery’ is the ‘Greatest Depression’
The U.S. will simply not be able to pay for higher interest rates on its debt (and the Fed will sooner or later go back into high gear quantitative easing mode).
Prepare for collapse … and chaos!
- Why things could be about to change for the dollar (CNBC, July 7, 2014):
After a weekend of celebrating America’s birthday, traders could come back to the desks Monday and buy its currency, with the stage set for a U.S. dollar breakout in the second half of the year.
Strategists and traders have been predicting it for months: 2014 was supposed to be the year of the dollar, where the Federal Reserve’s tapering of quantitative easing and an improving economy would boost the greenback’s value against other currencies, where central banks are easing or dealing with economic or geopolitical challenges.
But they’ve been wrong. Continue reading »
Like Bernanke, Yellen is NOT wrong, just evil.
- Yellen Is Flat-Out Wrong: Financial Bubbles Are Caused By The Fed, Not The Market (ZeroHedge, July 5, 2014):
More of the same from Janet Yellen in her latest speech, but her focus on “resilience” caught my attention as it relates to very recent developments. The taper threat experience last year may have been a warning, but it doesn’t seem like it resonated with her or policymakers. The major bond selloff, which led to global ripples of crisis in credit, funding and currencies, was the opposite of flexibility. Perhaps a better definition of the word would be a place to start.
But her meaning was a bit different, in that it is clear (from this speech and prior assertions, wrong as they were, about the mid-2000’s housing bubble) she sees bubbles as “market” events in which the central bank’s role is primarily shock absorption. In other words, idiot investors wholly of their own accord create bubbles and it’s the job of the munificent and enlightened Federal Reserve to help ensure that such “market” madness is “contained” without further economic destruction.
- Provoking World War III (Dissident Voice, June 6, 2014):
Antagonizing the Dragon and Bear
It is not prudent and it is not safe to stick an iron rod into a dragon’s mouth. Whatever they say in the West about dragons… but here in Asia, the dragon is revered as the greatest fabled creature on Earth and in the sky. The dragon is wise and patient, and it hardly ever uses force first. But if treated with disrespect and aggression, it is capable of retaliating in a deadly, determined and powerful way.
It is also thoroughly idiotic to go and start terrorizing a sleeping bear. It is obvious what would follow if one descended into a bear’s hole and then started poking a hibernating creature in the head. Nothing good would follow, nothing good at all.
But it appears that those who are ruling the Empire are not obsessed with prudence. They seem to be tired of tiny conflicts, which they are continuously stirring all over the globe. Libya is not enough and Congo is not enough. They need something big, really big; even much bigger than what they had already ‘achieved’ a few decades ago – like the destruction of the entire Indochina or Indonesia.
The Empire needs a mortal fight with mighty opponents.
Instead of helping to build a decent and peaceful world, it needs to cover our planet with innumerable corpses.
This time, if it will be allowed to do it, like it was some 70 years ago, tens of millions, and maybe many more, will vanish.
Once again, it would have to be a dragon and a bear, this time in unison, facing fascism and fighting for the survival of the world.
*****The anti-Chinese and anti-Russian propaganda howl is reaching a deafening crescendo, especially in Asia. Western media outlets are in the highest gear, spreading propaganda through both their own outlets and through their local media affiliates in the client states, mostly owned by big business.
China and Russia are now vilified, openly insulted, and blamed for the escalation of tensions in the Asia-Pacific region, and for the military build up. The entire mighty Western propaganda machine is now at work, demonizing China, Russia and other independent countries.
It is because the West is obviously pushing this planet towards the war. Not to see it would require truly great discipline.
Politicians are parading, one after another, in front of television cameras, pledging allegiance to capitalism, the Western-style regime or simply put, to the Empire. All those derogatory and inflammatory speeches against their ‘enemies’ are embarrassing, see-through, but nobody in North America and Europe is laughing, as they are becoming the norm.
Many are warning that this can lead to a world war, that the West has lost all restraint and is ready to bathe the planet in blood, once again. A quarter of century ago it appeared that with the destruction of the Eastern block and with China then increasingly on a capitalist course, the West had finally got what it had fought for centuries for – the total and absolute control of the planet.
But recently, something went ‘wrong’ for the West. Latin America rose and most of it gained freedom, then spat on the Monroe Doctrine. China began pushing for socialist reforms in medical care, education, culture and many other spheres. And Russia refused to get bullied and humiliated, reminding both Europe and North America that it is as always powerful and will not be stepped on as happened in the era of Gorbachev and Yeltsin.
North Korea and Iran (countries that have never attacked anyone in modern history) realized that the only way to survive and not to be reduced to dust is by having their own nuclear capacity.
And all these nations: several in Latin America, China, Russia, Iran, joined forces and decided: “Never again!” Never again will they allow the world to descend to the horrors of Western colonialism.
The wet Western dream of unopposed rule over the world is beginning to disappear into thin air. Is the West going to risk the destruction of our planet simply because it cannot own it?
*****“Stephen Harper attacks Vladimir Putin and ‘evil’ communism”, reported the Canadian news outlet, CBC News on 31 May 2014, in reference to the “lengthy keynote speech” at a fundraising event that the right-wing Canadian PM gave in Toronto. The speech was spiced with “language reminiscent of the height of the Cold War”.
Grotesquely, the President of the most aggressive country on Earth, the United States, Barrack Obama, was promising to ‘curb the aggression’ of Russia and China, two countries that have not invaded anywhere in the last few decades.
In a speech clearly aimed at provoking China, the US Defense secretary Chuck Hagel, spoke more like a thug than a politician: “The United States will not look the other way when fundamental principles of the international order are being challenged.”
‘Which order?’ Some would ask. Was he talking about the order that is being imposed on the world from Washington and European capitals and has been for centuries, at the cost of hundreds of millions of human lives? Quite an order!
Christopher Black, a leading international criminal lawyer based in Toronto, provided an analysis for this report:
The speech made by President Obama at West Point, the American military academy, that the fulcrum of American policy will be to curb the “aggression” of Russia and China immediately followed by his Defense Secretary Hagel in Singapore accusing China of destabilization in the South China Sea, rightly characterized by Lt. General Wang GuanZhong as “threats and intimidation”, express the clear intent of the United States to wage war in all its aspects against the two most powerful nations that dare to develop independently of American domination.
The United States has attacked China several times since World War II, first in the Korean War, followed by decades of attempted sabotage and isolation and then by the NATO bombing of the Chinese Embassy in Belgrade in 1999. It now has continued that pressure by trying to destabilize China internally through various mechanisms of infiltration of “human rights” groups into Chinese society and within China’s military and administrative mechanisms and a constant propaganda campaign to defame China and its people around the world. The momentum of this strategy has been stepped up with the recent attacks by fanatical Muslim groups from western China against Chinese civilians in key cities and transportation hubs and use of provocateurs to attacks Chinese interests in Vietnam, Thailand, the Philippines and Africa and the recent absurd charges against Chinese military officers for cyber attacks.
The recent events in Ukraine show that the pace of this aggression is accelerating as America attempts to complete the encirclement of Russia and China by advancing NATO to Russia’s borders and by repositioning of 60 per cent of US military assets to the Pacific.
But now the true aggressors are blaming the victims for ‘aggression’. And it is nothing new under the sun. Nazi Germany and its propagandists employed the same ‘logic’ and arguments, before and during WWII. And the French used it in Algiers and their other colonies, as did the Brits all over their ‘dependencies’.
*****In Asia, on a local level, the servile press in countries like the Philippines is taking orders and often surpasses its handlers in the West by its zeal.
On May 25 2014, The Philippine Star began with lashing out at China, continued by quoting the words of Admiral William Locklear III, the commander of US Pacific forces, that “Russia has its own ‘pivot’ in Asia”. Then the newspaper finally produced a few pieces of ‘brilliant’ analyses: “Official sources said Russia’s incursion into Ukraine has raised concern in Washington that China may try something similar in staking its territorial claims, in the guise of protecting its citizens overseas.”
‘Russian incursion into Ukraine?’ That sounds more like propaganda shouting from the pages of the North American or European daily press. In some 15 years of work in the region, after interacting with hundreds of media people from all over Southeast Asia, I have to testify that such a thought as quoted above, could never have come from a local journalist. Here, knowledge about Eastern Europe is very near absolute zero. And after being brainwashed in London, New York and elsewhere, local journalists do not compare. Someone else wrote it. Who did it? We all know it. It is the same source, which sends trolls biting at all my reports written for RT.
Most of the local Philippine press generally concluded that the US has basically no choice but to expand militarily, because of ‘China’s aggressive moves.’ Almost all the newspapers mentioned the high cost of the permanent US military bases in the region, also arguing that ‘spokes’, bases belonging to local countries but wide open for use by US forces, are the real way forward. Such bases would also be located on Australian and Japanese territories, and possibly in Singapore and Thailand, as well as Malaysia.
Now Thailand is certainly ‘secured’, after the army that has been killing millions in the region on behalf of the West, overthrew the progressive and elected government, and took control of the country. The coup is truly timely, isn’t it?
As if it would not already be enough to have countless bases in Africa, the Middle East, Japan, Oceania and those few client states that are still left in Latin America. But of course, those are too far from the main targets – China and Russia.
The mainstream Philippine media is not even bothering to question the integrity of such a military agreement, which is in direct violation of the nation’s Constitution. It is because the journalists in Southeast Asia are not paid and flown for training abroad, to moralize. They are paid to write what suits the elites and their foreign handlers.
Eduardo Tadem, Professor of Asian Studies at the University of Philippines, explained, during our recent conversation in Manila:
The recently signed agreement between the Philippines and the United States is called EDCA (Economic Defense Cooperation Agreement). In this agreement the Philippine government offered virtually all the military bases in the Philippines for total access to American soldiers, for a ten-year period. But who knows for how long, really… This is very dangerous, because all military installations of the country are now open for ‘entry’ of the US forces. And this certainly goes against the Philippine Constitution, which bars the establishment of foreign bases on our territory.
Then what really happened? Why the sudden change?
It has to do with certain factors. One, of course, is the factor of the so-called ‘US pivot’ to Asia. Under Obama there is this strategy of ‘pivoting to Asia’. Second has to do with the so-called Trans-Pacific partnership proposal of the United States; to build some sort of integrated market in the Asia Pacific region. Except that the Philippines is not part of it for now… The third one has to do with the territorial disputes that are taking place in this region, both in the South China Sea and the North China Sea.
It is mainly an issue of nationalism. And it is also because here they were always asking for more assistance, including military assistance. And this is the way to get that assistance. Also remember that Philippine Presidents were consistently supportive of the US. You probably saw the survey that shows that the Philippine people love the United States more than Americans love themselves. So for the Americans it is easy to get support for their China policy here.
I asked both Teresa Tadem, Professor of Political Science at the University of Philippines, and Professor Eduard Tadem, how was it possible that a country, the Philippines, that suffered so severely during its occupation by the United States, during the colonial era, when there were human rights violations, massacres… How come it feels so positive towards its former brutal colonizer?
It has to do with the extremely intensive American propaganda machine, which depicted the colonial era as a benevolent type of colonialism. Atrocities during the Philippine-American War at 1898–1901, which saw 1 million Philippine people killed, which was then almost one tenth of the population, were made to disappear from the consciousness of the people… the genocide, torture… The Philippines was known as the ‘first Vietnam’… all of this has been conveniently forgotten, hidden in the history books. And then of course the image of Hollywood that we are bombarded with…
How dangerous is it to antagonize China and even Russia? For centuries, China had been a very peaceful country, and it still is to this day. Many Filipinos come from China; it is a natural, historical ally… While the West is liquidating, and bombing entire countries into the ground, overthrowing governments, China pulls one oil-rig into disputed waters, sprays a few boats with water cannon, and it is immediately defined as the aggressor.
“It is again all about propaganda. They depicted China as Communist and here they always attach a negative connotation to that word”, said Professor Teresa Tadem.
For me the most dangerous country on Earth now is the United States”, continues Eduardo Tadem. “It has been the most aggressive… intervening in many countries all over the world, thousands of miles from its shores, trying to impose on the planet its vision of a global capitalist system. So, if you compare what China is doing in the vicinity of its territory, and compare it to what the US is doing in all parts of the world, on every continent… then you clearly see the disparity in the image that has been created, depicting China as a danger to peace in the world.
Both professors then expressed deep concern over the fact that the Western propaganda is igniting Sino-phobia in the Filipinos and in other Asians. They pointed out that what the US is doing is actually fanning ultra-nationalism, which can easily mutate into fascism. This is, according to them, an extremely dangerous situation – planting seeds of Sino-phobia all over the continent.
“This can lead to a point of no return”, explains Eduardo Tadem. “I am afraid that this is what is happening now in the Philippines, as well as in other parts of Asia where territorial disputes are taking place.”
And it is clearly not only Sino-phobia that can lead to the destruction of the world, although Sino-phobia is partially, definitely is. Stirring hatred against Russia is also clearly on the menu of the Western masters of propaganda. Stephen Harper of Canada, Polish and Baltic politicians and their irrational anti-Russian speeches, is all leading to a frightening outcome: manufacturing racism against those nations that are standing in the way of US and European domination of the world.
Dehumanizing a potential enemy, unleashing racist and derogatory sentiments against him or her, is the first step in the Western ‘art’ of war, the first step towards a confrontation.
One should seriously question what is being planned? One should demand to know, because what is being planned is most likely really awful.
*****People are beginning to speak up. Geoffrey Gunn, a prominent Australian historian and Professor Emeritus at Nagasaki University in Japan, wrote to me, for this report:
The international media big notes the “China threat,” yet who is the provocateur? We observe the Japanese Prime Minister in Singapore (May 30) offering to lead an international coalition to check Chinese aggression offering ‘quality’ Japanese naval vessels to obliging clients as with the Philippines and Vietnam. This is madness coming from a nation without official contrition seeking as well to unpick its god-save, the “peace constitution.” Meantime, the neo-con government in Australia overreaches with matching rhetoric, together snaring the US Defense Secretary to offer his own “pivot” to the South China Sea. My spin is to let Asian nationalisms (China, Vietnam, Japan, Korea) resolve their own problems diplomatically – after all the central kingdom has been in place for several millennium – outsiders keep out, militarists watch your step, and China rise peacefully.
From Vietnam, saddened by the new wave of hostilities between two Communist neighbors, Vietnam and China, a renowned Western artist who did not want to be identified, explained the situation:
I have no doubt the West is delighted at the turn of events and will do all it can to further exacerbate the China-Vietnam etc. rift. Of course it serves the pivot to Asia and other nasty US-NATO agendas. But the Vietnamese are just angry at bully China and one can’t argue with them about it. The Vietnam’s PM has been sending text messages to the entire mobile network warning people not to listen to “bad guys” and to only protest within local and international law…
It is striking how emboldened and self-assured Vietnam is becoming, lately, considering that it is actually doing an identical thing as China is – drilling in the disputed area.
Many see tensions between Vietnam and China as dating back to the Chinese punitive expedition to Vietnam (after Vietnam entered Cambodia and deposed the Khmer Rouge), known as the Sino-Vietnamese War of 1979. And it is almost bizarre to observe how unforgiving Vietnam is towards China, but how reconciliatory it has become towards the United States.
During the Sino-Vietnamese War some 10,000 Vietnamese civilians lost their lives – definitely not an insignificant number. But how could it even be compared to the millions of Vietnamese civilians who died in the “American War” (or the “Vietnam War” as it is known in the West). During the American War, entire cities were leveled into the ground, fields poisoned, women raped and people burned by napalm and other chemicals.
But, as in case of the Philippines, the creeping Western propaganda erased many of the horrors from people’s minds.
I spent 3 years in Hanoi. Holding US citizenship, I was treated with respect and never insulted. In a stark contrast, now Chinese businesses are being attacked and going up in flames, while Chinese people (from Mainland China, but also from Taiwan and elsewhere), are being chased, beaten, and even killed.
In the meantime, RT reported:
Visiting Washington, General Fang Fenghui also blamed the Obama administration’s “pivot” to Asia as a reason for heightened tensions in the region. He said some Asian nations have used the strategic shift to create mischief in the South and East China Seas.
*****Are we being dragged into the final global confrontation, to a possible WWIII? Observed from Asia Pacific or from Ukraine, it clearly appears so.
Christopher Black has no doubts that provoking, antagonizing and insulting powerful independent countries like Russia and China may be the next step towards the destruction of our human race:
All these actions are preparations for war. In fact, the positioning of American anti-ballistic missile batteries in Eastern Europe is in preparation for a nuclear first strike on Russia. Those batteries are deployed solely for the purpose of trying to intercept a retaliatory strike by Russian nuclear forces after a US first strike. They have no other purpose. These preparations for a war of aggression, in fact nuclear war, are a clear violation of the UN Charter and all international laws and can rightly be characterized as war crimes. But since the United States has contempt for all international laws and civilized standards of behavior we can expect these preparations to continue.
Mankind rests on the brink of annihilation for no other reason than the American pursuit of unlimited profit. They are the extremists of the capitalist system. We must hope that the skillful diplomacy we have seen employed by both Russia and China, the increased pace of their bilateral cooperation with each other and their increased steps to achieve multilateral cooperation throughout the world from Latin American to Africa and Europe and Asia will change the power dynamics of the world sufficiently to prevent the Americans and their allies from achieving their aims so that the peoples of the world can live in peace and devote their energies to solving mankind’s pressing problems.
- The Delusion Of Perpetual Motion; Bob Shiller Warns “I’m Definitely Concerned” (ZeroHedge, June 29, 2014):
“I am definitely concerned. When was [the cyclically adjusted P/E ratio or CAPE] higher than it is now? I can tell you: 1929, 2000 and 2007;” warned Bob Shiller this week, adding that “it’s likely to turn down again, just like it did the last two times.”
As John Hussman explains,
The central thesis among investors at present is that they are “forced” to hold stocks, given the alternative of zero short-term interest rates and long-term interest rates well below the level of recent decades (though yields were regularly at or below current levels prior to the 1960s, which didn’t stop equities from being regularly priced to achieve long-term returns well above 10% annually). The corollary is that investors seem to believe that as long as interest rates are held near zero, stocks will continue to advance at a positive or even average or above-average rate. Continue reading »
It’s Ukraine vs East Ukraine, but Russia is now told to solve the problem the U.S. and the EU have created in the first place?
- EU Gives Russia Three Days to De-Escalate Ukraine Crisis, Threatens Sanctions (RIA Novosti, June 27, 2014):
BRUSSELS, June 27 (RIA Novosti) – The European Council on Friday said it would give Moscow three days to de-escalate the situation in Ukraine, or it will impose new sanctions against Russia, according to a statement published Friday.
The European Council also set conditions for the de-escalation.
“The European Council expects that by Monday 30 June the following steps will be taken: Agreement on a verification mechanism, monitored by the OSCE, for the ceasefire and for the effective control of the border; return to the Ukrainian authorities of the three border checkpoints (Izvarino, Dolzhanskiy, Krasnopartizansk); release of hostages including all of the OSCE observers; launch of substantial negotiations on the implementation of President [Petro] Poroshenko’s peace plan,” the statement reads. Continue reading »
- Former Governor Warsh Slams Fed’s “Reverse Robin Hood” Policies (ZeroHedge, June 26, 2014):
Isn’t it odd that when ‘officials’ are no longer part of the status-quo-sustainers, how the truthiness flows… As former Fed Governor Kevin Warsh explained this morning, “on the fairness point – if you have access to credit, if you’ve got a big balance sheet, the Fed has made you richer,” concluding rather too honestly for some people’s liking, “I would say [Fed policy] has been in some sense Reverse Robin Hood.” The bottom line, he chides, “this is a way to make the well to do more well to do because that’s all the Federal Reserve can do.”
- Germany’s “End The Fed” Protest Organizer Gets Car Fire-Bombed (ZeroHedge, June 26, 2014):
Anyone saying “the Fedeal Reserve Act is bad” in Germany is, according to Lars Maehrholz, looked upon by the mainstream as being a Nazi. The organizer of the widespread “End The Fed” rallies that we discussed previously, explained that he is not only under attack by the main stream media and political system in Germany but also physical threats that resulted in a car he was in getting fire bombed by an anonymous perp.
Lars received threats that this would happen online and now his friends car that he was in, was set on fire.
The police say that the car caught on fire by itself and are not investigating the case. Luckily Lars and his friend were not in the car when it was set on fire.
In this video Luke Rudkowski talks to Lars Maehrholz a skydiver that became the main organizer of the massive Monday peace vigils in Berlin.
The Monday peace vigil is an autonomous fully independent movement that gained massive popularity in Berlin that is against the U.S Federal Reserve.
- Stone Cold Proof That Government Economic Numbers Are Being Highly Manipulated (Economic Collapse, June 25, 2014):
How in the world does the government expect us to trust the economic numbers that they give us anymore? For a long time, many have suspected that they were being manipulated, and as you will see below we now have stone cold proof that this is indeed the case. But first, let’s talk about the revised GDP number for the first quarter of 2014 that was just released. Initially, they told us that the U.S. economy only shrank by 0.1 percent in Q1. Then that was revised down to a 1.0 percent contraction, and now we are being informed that the economy actually contracted by a whopping 2.9 percent during the first quarter. So what are we actually supposed to believe? Sometimes I almost get the feeling that government bureaucrats are just throwing darts at a dartboard in order to get these numbers. Of course that is not actually true, but how do we know that we can actually trust the numbers that they give to us?
Over at shadowstats.com, John Williams publishes alternative economic statistics that he believes are much more realistic than the government numbers. According to his figures, the U.S. economy has actually been continually contracting since 2005. That would mean that we have been in a recession for the last nine years.
Could it be possible that he is right and the bureaucrats in Washington D.C. are wrong? Continue reading »