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Welcome to the U.S.S.A.’s Banquet of Consequences

Welcome to the U.S.S.A.’s Banquet of Consequences

The incontestable incompetence of the USSA’s monopolies, institutions and agencies is about to take center stage in 2021.

When I mention that the U.S.A. feels increasingly like the U.S.S.R., a surprising number of people tell me they feel the same way. Welcome to the U.S.S.A.: United Simulacra States of America where everything is an absurdly transparent simulation with little connection to reality and dissent is crushed by an everpresent, ubiquitous narrative police state enforced by the union of Big Tech social media, search and other monopolies and the Savior Statedo what we tell you and you’ll get a piece of our endlessly spewed trillions.

My colleague Mark Jeftovic recommended an insightful book on the unraveling of the USSREverything Was Forever, Until It Was No More: The Last Soviet Generation.

It’s an academic book so there are the required servings of jargon and references to suitably opaque academic tropes, but beneath the conceptual clutter lies a profound analysis of how humans adapt to and navigate a system that has lost all authenticity and survives entirely on the ceaseless marketing of artifice: in other words, the USA today.

Of particular interest are the book’s personal accounts of dutiful Party members going through the motions of obedience as a means of enjoying their private friendships and lives. Joining the Party’s machinery was a way to meet friends who you recruited for your committee work. Everyone went through the motions but nobody actually believed any of it: you did homework while “listening” to the endless canned speeches, you went out for coffee while telling the Party functionary that you were on Party business, and you worked on parades and activities that were a bit of fun despite the dreary official purpose which everyone ignored.

…click on the above link to read the rest of the article…

“Watch this!”

“Watch this!”

There are times in my career as a collapse observer and systematizer when my running commentary can quite reasonably be pared down to just two words: “Watch this!” The current severe stage of the financial and economic collapse sequence that was initiated in 2008, which is being artificially masked (no pun intended) by the fake Covid “pandemic,” and now a hung and fraudulent US election on top of it is just such an occasion: why not just sit back and watch the world burn? But I happen to be in a particularly good and sprightly mood today, and when I get that way few things can hold me back from holding forth and bloviating prophetically.

Let’s start with a quick jaunt down memory lane. I first realized that the USA was going to follow the general trajectory of the USSR back in 1995. I also immediately realized that the USSR was rather well prepared for collapse whereas the USA was about to be blindsided by it, and so, as a public service, I thought I should warn people. “And a fat lot of good that did!” some of you might immediately exclaim. But you would be wrong: lots of people have written to me to say how much better adjusted they are psychologically now that they have heard and accepted my message, for now they are ready to accept collapse with equanimity and poise. This is sure to make their company less tedious moving forward.

And so I had my “Eureka!” moment in 1995, and a decade later, in 2005, I went public with my observations. I got a surprisingly sympathetic response from some particularly enlightened people (even if they said so themselves).

…click on the above link to read the rest of the article…

Understanding State Propaganda From The USSR to The USA

Understanding State Propaganda From The USSR to The USA

While the de jure role of state sponsored propaganda is to convince a population to adopt a certain line of thinking on the issues of the day, the de fato function of state sponsored propaganda is rather different. In a society in which even a sizeable minority of the public are capable of critical thinking, few will immediately believe everything they are told, even if they can’t quite put their figure on a specific point of contention.

Because of that, in educated societies as the Soviet Union’s was, state propaganda serves a purpose of alerting people as to what they are forbidden to disagree with in public. In other words, if the official state line as delivered through state sanctioned newspapers, radio and television is that the economy is booming, people are being paid well and on time and that the new housing stock is superior to any other in the world – the authors of such propaganda do not expect those who are under-paid, living in mediocre housing and unable to elevate themselves into a higher living standard, to believe the self-evident nonsense that forms the core of the propaganda.

Instead, as part of the political requirement for society not to fall apart, it is expected that in private, people will complain to their friends and family about the fact that the economy is poor, people are stuck in dead end jobs and that housing is substandard, but that in public one will refrain from voicing these thoughts, because if they did, they would lose their job at a state owned factory, lose their state pension and if they took their message of opposition to greater heights, they could even receive a visit from the police.

 …click on the above link to read the rest of the article…

The U.S. Is “Morphing” Into The U.S.S.A. – The United States of Soviet America

The U.S. Is “Morphing” Into The U.S.S.A. – The United States of Soviet America

We are experiencing an ever-increasing level of  surveillance over the citizenry, government censorship and closed-door policies, control and manipulation of the media, and a “hardline” shift of all institutions to the left. The institutions I’m referring to specifically are the educational system (better termed a system of indoctrination), the courts, the religious institutions…every one of them are all “leaning” toward (if not striving toward) full blown socialism. Let us recall a key quote:

“The goal of Socialism is Communism.” – Lenin

Just as recently as Tuesday, 10/2/18, we have this stunning announcement as quoted by the Washington Examiner by none other than the Secretary of the Department of Homeland Security. Here’s the excerpt:

Homeland Security Secretary Kirstjen Nielsen warned Tuesday the public should steer clear of Russian-owned entities that pose as legitimate news outlets. “I encourage everybody, if you are reading something … and it suddenly takes you to RT and Sputnik, be aware. I mean, those are state-sponsored news outlets. They’re not independent,” Nielsen said at a cybersecurity summit in Washington, D.C.

Yeah, can you imagine that? Those Russian news sources are “state-sponsored,” and “not independent.” So ABC, CBS, and the New York Times are independent? Freedom of the press, right?

And how many White House press briefings would tolerate one person…one reporter from the Independent News Media? If it isn’t AP (Associated Press) sanctioned with a card, credentials, and lip balm, nobody is getting into those briefings. And how about all of the “Presidential Debates,” such as those modified by Cooper, Wolf Blitzer, and the like? The ones with the questions and their answers figured out a month in advance…with phony people and actors pretending to ask the questions spontaneously. The show must go on, right?

…click on the above link to read the rest of the article…

The Trade War Is Already Having A Huge Impact On The U.S. Economy

The Trade War Is Already Having A Huge Impact On The U.S. Economy

The trade war has barely just begun, and yet significant ripple effects are already being felt all across the U.S. economy.  Once thriving businesses are on the verge of failure, workers are being laid off, and some sectors of the economy are witnessing enormous price hikes.  Right now the mainstream media is absolutely fixated on the drama surrounding the recently concluded Trump-Putin summit meeting, but the consequences of this trade war will ultimately be far more important for the lives of most ordinary Americans.  As more tariffs continue to be implemented, this will perhaps be the biggest disruption to the global economic system that we have seen in decades.  Perhaps you have not been affected personally yet, but for many Americans this trade war has changed everything.  For example, just consider the plight of soybean farmer Tim Bardole

The U.S. is China’s second-biggest source of soybeans at 34% of the imports, after Brazil, which ships 53%. The staple is used to make cooking oil and seasoning, and soybean meal is found in pig feed.

Now the tariffs have taken the bottom out of U.S. soybean prices, delivering a gut punch to farmers like Tim Bardole. He was already $100,000 in the red last year due to a yearslong slump in cereal prices, and the current predicament has driven him into a corner.

“I’m not sure if I can get a loan from the bank to finance our next year’s crop,” said Bardole.

If this trade war had not happened, perhaps Bardole would have been able to eventually get out of debt.  But now he is facing financial ruin and the potential loss of his entire farm.

Switching gears, U.S. consumers will soon discover that common electronics such as phones and computers cost a lot more.  The following comes from CBS News

Buyers in the U.S. will soon see price hikes on computers, phones, thermostats and “everyday items,” according to the Information Technology Industry Council, a group that represents tech companies.

Hundreds of Chinese components that the Trump administration penalized are used to make everything from LEDs to sensors to printer and scanner components. When manufacturers pay more for their parts, the costs are typically passed on to consumers, the ITI said.

Are you ready to pay 50 dollars for your next phone to support this trade war?

Maybe.

50 dollars is ultimately not that big of a deal.

But what about paying $9,000 more for your next house?

Experts Warn Of Chaos For The U.S. Economy As China Declares That “The Biggest Trade War In Economic History” Has Begun

Experts Warn Of Chaos For The U.S. Economy As China Declares That “The Biggest Trade War In Economic History” Has Begun

Nothing is going to be the same after this.  On Friday, the United States hit China with 34 billion dollars in tariffs, and China immediately responded with similar tariffs.  If it stopped there, this trade war between the United States and China would not be catastrophic for the global economy.  But it isn’t going to stop there.  Donald Trump is already talking about hitting China with an additional 500 billion dollars in tariffs, which would essentially cover pretty much everything that China exports to the U.S. in a typical year.  The Chinese have accused Trump of starting “the biggest trade war in economic history”, and they are pledging to fight for as long as it takes.  As I discussed yesterday, the only way that one side is going to “win” this trade war is if the other side completely backs down, and that simply is not going to happen.  So there is going to be economic pain, and that pain is likely to intensify for as long as this trade war persists.  U.S. businesses that will be affected by foreign tariffs are already cutting back production and laying off workers, and CNN is reporting that 1,300 products have suddenly become more expensive for U.S. consumers.  There will be nowhere that anyone can hide from this trade war, and it will ultimately affect every single man, woman and child in the entire country.

Most Americans are not paying any attention to these ongoing developments, but the Chinese sure are.

Earlier today, the Chinese Ministry of Commerce called the U.S. tariffs “typical trade bullying”, and it warned that this trade war could trigger “global market turmoil”

…click on the above link to read the rest of the article…

Things Just Went Nuclear In Our Trade War With China, And A Giant Shockwave Is About To Hit The U.S. Economy

Things Just Went Nuclear In Our Trade War With China, And A Giant Shockwave Is About To Hit The U.S. Economy

It is difficult to find the words to describe just how serious America’s trade war with China is becoming.  As you will see below, the two largest economies on the entire planet are on a self-destructive course that almost seems irreversible at this point.  The only way that this trade war is going to come to a rapid conclusion is if one side is willing to totally submit and accept an extremely bitter and humiliating defeat on the global stage, and that is not likely to happen.  So in the short-term, and probably beyond that, we are going to experience a tremendous amount of economic pain.  In fact, if one wanted to create a recipe for economic disaster, it would be hard to beat having the Federal Reserve dramatically raise interest ratesat the exact same time that the U.S. government is starting trade wars with all of the other major economic powers simultaneously.  Unless something drastically changes in the very near future, there is no way that the U.S. is going to be able to get through this without experiencing severe pain.

Many had hoped that President Trump would settle down after the initial salvos in this new trade war, but instead on Sunday evening we learned that he has decided to go nuclear.  The following comes from CNBC

President Donald Trump plans to bar many Chinese companies from investing in U.S. tech and to block additional technology exports to China, The Wall Street Journal reported on Sunday evening, citing people familiar with the matter.

The two measures are set to be announced by the end of the week, and are intended to counter Beijing’s Made in China 2025 — a Chinese initiative to be a global leader in technology.

…click on the above link to read the rest of the article…

Whiskey Tango Foxtrot


Gordon Parks Daytona Beach, Florida. Bethune-Cookman College. Football practice 1943
Here’s a delicious little rant from Dr. D., by now a regular contributor at the Automatic Earth.

Dr. D: The schizophrenia surrounding the tariff plan is really startling. But then I could just say, “the level of insanity everywhere is startling.”

Self-avowed schmartz-guys are all “doesn’t the U.S. know their empire is failing and everybody is cutting them off? What are they thinking starting trade wars with allies and raising prices???” Stop. So your argument is the U.S. is losing its influence, other nations are about to cut it off and end the trade deficit, and thereby basically halt imports? While the U.S. has no internal manufacturing? And your argument here is that, not if but when the world cuts us off we a) would like to have some steel and aluminum to build factories, washing machines and tanks or b) do NOT want to have access to the basic raw materials of society? Whiskey Tango Foxtrot.

I’m sorry that this generation burned down the factory, then retreated to the mansion, sold off and burned all the furniture there too, then ran up the credit card with cocaine and heroin parties while yelling “I’m a rock star! I’m a Contender!”, but they did. Now there are only bad decisions, like the ones real adults have.

And there’s nothing but work to put that factory back up, and that’s going to cost something, in this case, money and higher prices, using the thousand-year method of protective tariffs. Why not? Europe has 25% tariffs. China has a virtual lockout. If the U.S. machine then also has higher real wages for U.S. workers they can afford the tariffs. I mean, what’s their counterargument? If it’s better to not have steel and aluminum, perhaps we should shut down the few remaining foundries and have NO materials? I mean, if a little is bad, surely none is way better.

Mish for example thinks this way: if China is willing to give us cheap, under-market steel we should take it. No, not if you want to have a country, you don’t. Isn’t it a matter of national security to be able to make tanks, ships, railroads, and artillery? There’s more to the world than money.

…click on the above link to read the rest of the article…

 

USA 2017 vs. France 1789

USA 2017 vs. France 1789

Most people are familiar with the story of the French Revolution: When the poor revolted against the unfairness and wealth inequality imposed by the aristocrats, they overthrew the monarchy and beheaded more than 40,000 people, mostly clergy and noblemen, as punishment for their crimes and injustices.

The days of using a guillotine may be behind us – but the anger that led to that revolution is similar to the growing anger at economic inequality in the US today, and could lead to the same kind of unrest.

In France, there were three classes: The First Estate, made up of clergy; The Second Estate, made up of the nobility; and the Third Estate, made up of everyone else. Even though the first two Estates were made up of just 3% of the population, they owned 35% of the land, paid almost no taxes, and held virtually all the political power in the country.

Where are we in America today?

Wealth distribution

If they were around today, heads still attached, French aristocrats would be mightily impressed with the wealth accumulation of America’s rich. The top 1% of the country owns 35% of the wealth; the top 10% owns 77% of the wealth. The bottom 40% owns 0% (here).

Perhaps the best summary of where we are on wealth inequality can be found in the video below:

Tax burden

Certainly, the American rich are paying more in taxes than did their pre-revolutionary French Counterparts. But as a share of income, the American poor are carrying a much heavier burden.

When most people talk about taxes, they think of income taxes, and on that front the rich do pay quite a bit more: According to the Tax Foundation, in 2015, “The top 1 percent of taxpayers paid a higher effective income tax rate than any other group, at 27.1 percent, which is over 8 times higher than taxpayers in the bottom 50 percent (3.3 percent).”

…click on the above link to read the rest of the article…

Back From Never Gone: CURRENCY WARS

Back From Never Gone: CURRENCY WARS

US Dollar Chinese Yuan

In the previous episode of the currency wars, a few years ago, the Euro-Dollar exchange rate was in the spotlight. This has now completely disappeared to the background and whilst the countries of the Eurozone must be pretty happy with the weak currency (which boosts the export and increases the demand for domestically produced goods), the United States are less than happy as it weakens the position of the country on the export market.

China 4

Source: Tradingeconomics

You might have missed it when the mass media were falling over themselves to crucify president Trump, but we had the impression currency wars, and protecting the position of the United States on the world market were pretty high on his ‘to do list’ after decades of huge trade deficits. As you can see on the next image, there clearly is a huge discrepancy in the trade numbers between China and the United States. A substantial trade deficit, which has been nipped in the bud by China using their hard dollars to purchase US Treasuries.

China 2

Source: Danske Bank

Whereas the president was definitely pointing fingers at China during his election campaign, he seems to have been softer after a recent call with the Chinese president.

Does this mean the USA and China are now best buddies again? Probably not. It’s far more likely the president has realized he won’t be able to get much done when he gets in a direct confrontation with China. His staff has now launched a ‘test balloon’ and widened the scope of the currency manipulation investigation. Instead of singling out China, the White House will now be using a more general approach, and has even singled out Germany.

China 1

Source: Danske Bank

…click on the above link to read the rest of the article…

Eastern Europe & World War III

Eastern Europe & World War III 

Europe could become the site of a new global war in the East as tensions build there against refugees and the economic decline fosters old wounds. The EU is deeply divided over the refugee issue and thus it is fueling its own demise and has failed to be a stabilizing force. After five days of demonstrations, Romania’s month-old government backed down and withdrew a decree that had decriminalized some corruption offenses. They were still acting like typical politicians and looking to line their pockets. After one month, the people have been rising up saying “We can’t trust this new government.”

On the eastern border of the EU, only a few hundred miles from Berlin as well as Vienna, there is a growing danger that the world will stumble into a global war. The leading cause is primarily stemming from through the incompetence of the politicians in the EU as well as in the East. The EU is more concerned about punishing Britain and trying to hold on to overpaid political jobs that to address the real issues facing Europe, while these seemingly regional disputes in the East are being ignored.

The problem with NATO has been that most members have not paid into the support of NATO that they had agreed to. The USA has been shouldering the majority of the cost of NATO, which would be like the EU funding US military. Then NATO leaders agreed back in 2016 to deploy military forces to the Baltic states and Eastern Poland for the first time and increase air and sea patrols to reassure new allies who use to be part of the Soviet bloc that they would defend them following Russia’s seizure of Crimea from Ukraine.

…click on the above link to read the rest of the article…

Panama Papers – Who Instigated the Leak? USA or Russia?

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The US think tank Brookings Institution is claiming that Russia had released the Panama Papers in order to destabilize the West. Wikileaks claimed the exact opposite that the publications have been launched by the United States. Our sources put the blame on neither. Indeed, it is starting to emerge that attempts to leak information to Germany before were ignored by the government. Several times a whistleblower attempted to provide information to the Minister of Finance. The whistleblower wanted to expose questionable dealings of the Bundesdruckerei which is a state owned company with one of the longest histories in the business, dating as far back as the 18th century. The German government took over Bundesdruckerei as a wholly state-owned company. In recent years, however, the company has been transformed into a leading international Full ID | Management supplier.

SchäubleSPIEGEL is now reporting that the German Finance Minister Wolfgang Schaeuble and his Secretary of StateWerner Gatzer have refused contact with a whistleblower for years. The Ministry of Finance assumed Bundesdruckerei had used this company to do business in Venezuela.

It appears that the whistleblower is German. This appears to be really an internal breach rather than a state orchestrated event. There appears to be no real motive to expose the Panama Papers for this has been following the same path as to why Hitler did not invade Switzerland; he too needed access to secret measures. Switzerland’s secrecy began when Hitler made it illegal to have an account outside of Germany. He could have invaded Switzerland for defeating his laws, but he did not. There are some lines you do not cross. and this is one of them.

Consequently, the leak does appear to be internal for personal political reasons rather than instigated by USA or Russia.

“We Are In A New Cold War”: Russia PM Delivers Stark Warning To NATO

“We Are In A New Cold War”: Russia PM Delivers Stark Warning To NATO

It was just two days ago when Russian PM Dmitry Medvedev warned that if Saudi Arabia, the UAE, and Qatar invade Syria in a transparent attempt to shore up their Sunni proxy armies currently under siege by Moscow’s warplanes and Hezbollah, a “new world war” would be inevitable.

He also indicated that such a conflict would likely drag on for “decades.”

“Do they really think they would win such a war very quickly? That’s impossible, especially in the Arabic world,” Medvedev said. “There everyone is fighting against everyone… everything is far more complicated. It could take years or decades.”

On Saturday, Medvedev was back at it with the hyperbole (or at least we hope it’s hyperbole) in Munich where more than 60 foreign and defense ministers are gathered for the 52nd Munich Security Conference. In his speech, the PM challenged NATO’s military maneuvers in the Baltics as well as the alliance’s general approach towards relations with The Kremlin.

“The political line of NATO toward Russia remains unfriendly and closed,” he said in a speech to the conference. “It can be said more sharply: We have slid into a time of a new cold war.

“NATO on Wednesday approved new reinforcements for eastern Europe, including stepped-up troop rotations on its eastern flanks and more naval patrols in the Baltic Sea,” Bloomberg notes. “In response, the Kremlin dismissed the alliance’s argument that the move was merely defensive.”

“Russia’s rhetoric, posture and exercises of its nuclear forces are aimed at intimidating its neighbors, undermining trust and stability in Europe,” NATO secretary general Jens Stoltenberg told the conference earlier. “We strive for a more constructive and more cooperative relationship with Russia.”

…click on the above link to read the rest of the article…

Iran Deal is About Staving Off the Coming Oil Shock

Iran Deal is About Staving Off the Coming Oil Shock

The US wants to use Iran to sustain its regional influence in the face of the next global economic recession

The Iran nuclear deal signals a major shift in the geopolitics of the Middle East. Integral to the equation is oil, economics, terror – and US hegemony.

The Bush administration had initiated a long-term covert strategy to undermine Iranian influence in the Middle East and Central Asia, combined with overt pressure through diplomatic initiatives and economic sanctions.

Under Obama, this strategy accelerated, largely in concert with other Gulf powers like Saudi Arabia, Qatar and the UAE, who have long sought to roll-back Iranian influence.

Yet even as the strategy accelerated, unlike its predecessors which openly declared their warmongering hostility to Iran, the Obama administration had used the pressure to forge an unprecedented deal with the country.

Averting regional war

The reasons for the shift are, of course, pragmatic. For years, US intelligence agencies have told the White House that there is simply no evidence Iran is trying to build a nuclear bomb.

And the International Atomic Energy Agency (IAEA) has repeatedly certified that uranium is not being enriched to levels necessary for weaponisation, nor is it being diverted to a secret weapons programme.

Meanwhile, senior US military officials have long warned that the sort of US-Iran military confrontation which frothing neoconservatives have been pining for would likely fail and destabilise the entire region.

What about an Israel-Iran confrontation? A classified Pentagon war simulation held in 2012 found that an Israeli attack on Iran would also lead to a wider regional war.

Unlike the neocons, for the military pragmatists in successive US administrations, war with Iran could never be a preferred option.

The added bonus is that Iran might notch down its involvement in Iraq and Syria.

– See more at: http://www.middleeasteye.net/columns/iran-deal-about-staving-coming-oil-shock-1366649799#sthash.fMD7hQbp.dpuf

 

Endless enemies – how the US is supporting the Islamic State by fighting it

Endless enemies – how the US is supporting the Islamic State by fighting it

From al-Qaeda to the Islamic State to Assad, the US is fighting terrorists of its own creation by partnering with other terrorists of its own creation

Geopolitics is a murky game. Precisely how murky is reflected in the well-worn phrase, “The enemy of my enemy is my friend.”

What happens, though, when you follow that ancient proverb with the faith of a religious believer?

Now that the war on the “Islamic State” (IS) is, ostensibly, in full-swing, the US is making “friends” out of enemies, old and new. Among our new friends is al-Qaeda.

Except they are supposedly not “our” friends, but friends of our allies.

Al-Qaeda, freedom fighters for Gulf monarchies

Saudi Arabia, Qatar and Turkey are now working to support al-Qaeda’s official arm in Syria, Jabhat al-Nusra, to re-take Syrian territory from Bashir al-Assad. The strategy resulted in a coalition of rebel groups, led by the al-Qaeda faction, conquering Idlib in April.

The three regional powers claim they are hoping to compel al-Nusra to renounce its relationship to al-Qaeda – but the reality is they are funding the al-Qaeda affiliate without any meaningful guarantee of control.

“Nusra will stay with al-Qaeda unless the other rebel forces are able to unify into one force,” said one al-Nusra member. “[Al-Qaeda leader Ayman] al-Zawahiri says the unification of Muslims is more important than membership in any group.”

According to Rami Abdelrahman of the Syrian Observatory for Human Rights, al-Nusra is “not so different from IS. They want to make an emirate but are looking for the right opportunity.”

Publicly, the official line is that the Saudi-Qatari-Turkish strategy is not directly funding al-Nusra, although the geopolitical coalition is aware that al-Nusra will benefit from the support to Islamist rebel groups.

– See more at: http://www.middleeasteye.net/columns/endless-enemies-how-us-supporting-islamic-state-fighting-it-1621962798#sthash.A6sh8j6a.dpuf

 

Olduvai IV: Courage
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Olduvai II: Exodus
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