Monday, December 8, 2014

U.S. Empire Picking Up Speed, On Skids Or Just Going Off to War Again, Johnny?  (Another Fabricated Jobs Report) Incurious/Vapid NeoLiberals



WHEN DO THE ANTI-OLIGARCHY RIOTS START?

From Zero Hedge:

“Riddles” Surround 36th Dead Banker Of The Year

So reminiscent of the movie "Munich." No, not the politics; the belief in assassinations being the answer:  revenge. (Or providing a vast evidentiary basis for what happens to the "bad" examples.)*

But I digress.

One of my favorite scientists/thinkers echoes my thoughts on what feminism has always been about (hint:  equal treatment of minorities). (Just thought I'd highlight this before the really bad news.)




Empire, schmempire. Where are my guns?

It's too bad that the likeliest result of having too few good jobs with decent benefits convinces too many young Americans that they must enlist in the war efforts (military).

But it does.

What does the empire feed on? It feeds on money and fear; your money and your fear, both obtained with your cooperation. It is bigger now than when it faced an actual adversary in the Soviet Union. Russia is no adversary; all it wants is to be a normal country, at peace with the world. But the empire won’t let it, will it? It must create enemies. Who are our enemies? According to the authors of endless war they are North Korea, Iran, Syria, and Islamic terrorists. Are any of them actually capable of threatening the US? Well, yes, but they are all quite easy to deter. But the plan of the authors of endless war is not to deter them; it is to back them into a corner with political instability and sanctions, while whipping up the population on both sides into fear-filled frenzy.

We all know that the US military-industrial complex has become a self-perpetuating and uncontrollable organism, just like Dwight D. Eisenhower warned us in 1961. Everyone knows the phrase and Eisenhower's warning—it is part of our collective memory. At a trillion dollars a year and growing, with over 1000 bases ringing the planet, it has expanded far beyond what Eisenhower could have imagined in his worst nightmare. We can’t say we didn’t know:  he warned us. After the National-Socialist episode in Germany, many good Germans voiced regrets at not speaking up, claiming that they didn’t know what was being done in their name. But we do not have that excuse:  we all knew all along.

Nor was it the first time we were warned. General Smedley Butler told us before, in 1933, and his words are still with us, posted online. Why is it that everyone, generals included, suddenly gain wisdom immediately upon reaching retirement? Butler offered an explanation:  his “mind was in suspended animation while serving as a soldier and following orders.” In 1933 Butler told us that he “was a racketeer, a gangster for capitalism.” He said:


“I helped make Mexico, especially Tampico, safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefits of Wall Street. The record of racketeering is long. I helped purify Nicaragua for the international banking house of Brown Brothers in 1909-1912 … I brought light to the Dominican Republic for American sugar interests in 1916. In China I helped to see to it that Standard Oil went its way unmolested.”
This empire is nothing new, and we knew what it is and what it does all along. We can’t say we didn’t know. We have watched throughout our lives as the US put down every popular uprising against local autocrats and oligarchs, placed countries under US control, then helped organize and train the death squads that killed off the opposition. Think of Indonesia, Argentina, or Honduras.

We watched as the empire crushed every democratic government that threatened US business interests under the false pretext of “anti-communism,” starting with Iran in 1953, Guatemala in 1954, and proceeding to Congo, Haiti (numerous times), and most notably and infamously Chile in 1973 (assassinating president Salvador Allende on September 11, 1973), Nicaragua in the 1980’s, and many, many others. (For details see William Blum’s Killing Hope.) And of course, many of us lived through the epic lies and genocide of millions in Vietnam, Laos and Cambodia during the so-called “Vietnam War.” We knew, we watched, and we paid taxes that paid for the bullets and the bombs.

More recently we’ve seen the barefaced lies of empire laid out for all to see in Iraq, Libya, Syria, Afghanistan, Somalia, Georgia, Pakistan, Yemen, Ukraine... they never end! But the trouble we stir up in other places never seems to come home and ring our doorbell, does it? Maybe that’s why it keeps on going. We think that we can just ignore it and go on with our lives — that it won’t affect us. Or does it?

Let’s leave aside the destruction of democracy that always accompanies a militarized, fascist police state that the US has gradually turned into. And let’s ignore the violence that pervades US society, or the vast gulag of incarceration that disposes of our useless eaters. Consider that the only military attack on US soil that actually scored a palpable hit since Pearl Harbor was 9/11.

Pearl Harbor was on the periphery, way out in the Pacific, “A Day that will live in Infamy,” the more so since FDR knew it was coming and did all he could to provoke it by cutting Japan off from oil supplies, directly provoking it into launching the attack. But Hawaii is the periphery while 9/11 struck at the heart of the empire, the financial center in New York that drives the imperial wealth pump, and the Pentagon, which is charged with the mission of US world domination.

Whether you believe that 19 Arabs armed with box cutters who couldn’t fly propeller planes took down 3 World Trade buildings that plummeted straight down at the speed of freefall in what looked like controlled demolition (yes there were 3, look up “Building 7”), and destroyed a section of the Pentagon, or whether you believe it was an inside job, doesn’t matter. The point is, in that act of destruction, the wars of the empire finally came home.

What was the result? Did these events cause us to reconsider what we are doing? Of course not! Instead, we went all-in for war. Remember, the empire is an automaton, a self-perpetuating organism, living on money and fear. What better way to whip up fear than to stage, or to allow, or to simply fail to prevent, an attack on the “homeland” — which is, by the way, a Nazi propaganda term.

The purpose of war is simply to cause more war, since it is so profitable for the badly misnamed “defense industry.” Butler told us in 1933 that “war is a racket,” and documented massive war profiteering during WWI. Do you know how much money Lockheed, Northrop-Grumman, Boeing, General Dynamics, Raytheon et al. are making from the “War on Terror”? The sums are astronomical.

As you read these words, the empire is busy doing its work in Ukraine. Here is how that works. First, it overthrows the elected government in a US-backed coup. Next, it directs its local puppet regime to unleash a military attack and organize death squads to deal with the population in the east that won't go along with the US-backed coup, in this case using actual Nazi-branded death squads, complete with Nazi SS Insignias. (Anyone can verify these facts with the most cursory internet search.)

And for the final, consummate imperialist touch, it votes in the UN (together with Canada) against a resolution condemning the Ukrainian Nazis and other racist murderers, while the Europeans shamefacedly abstain. This sort of plan used to work really well, and so the empire keeps repeating it over and over again, even though the results are worse every time.

Vast numbers of Americans support the empire’s wars of conquest because they help maintain their lavish lifestyles. They bother some of us more than others. Many of us are adamantly against them, but only a few find it emotionally unbearable to countenance the destruction of millions of lives in our names and with our money. What makes them different? Who knows, you would have to ask a psychologist.

The question for those who oppose endless war is, What have we done about it? A mass movement in the 1960’s that added up to an uprising by a vast segment of society perhaps had something to do with ending the conflict in Vietnam. In spite of these protests, the empire was able to extend the war by an extra five years all the way to 1973, when it agreed to end it on the same terms that had been offered in 1968 to Nobel “peace laureate” Henry Kissinger. There has been no significant anti-war protest since then, and certainly none that succeeded in preventing or ending war. Why?

First, the draft was ended. This put an end to the involvement of average US families in the wars of empire, and therefore ending the requirement for consent of the governed. The strategists realized that the draft was a disaster for the empire. The new, much better and cheaper way to procure cannon fodder for the endless war is to enlist the children of the underclass, by using economic oppression in order to deprive them of any other means of advancement except military service.

Second, the military has been outsourced and privatized, requiring even less involvement by US families in the military, and less need for their consent. “You’re all volunteers, so shut up” is the attitude.

Third, the vastly increased scope of domestic spying by the NSA and other government agencies has helped keep everyone under control and stifle dissent.

Fourth is the tight government/corporate control of the US media, which has become consummately successful in brainwashing and propagandizing the population.

Finally, there is the war on whistleblowers and journalists who expose the truth, from Tom Drake to William Binney, Sibel Simons, Jesselyn Radack, Bradley Manning and Julian Assange.

If necessary, the police, who are vastly more militarized than in the past, together with national guard troops, can squash any dissent like a bug. All these measures ensure that efforts at reform pursued through legal, nonviolent means such as voting, protest, civil disobedience, civil resistance, etc. will have absolutely no effect. The only action that can possibly stop the empire in its tracks is cutting off its food supply — the tax money on which it lives.

We have to starve the beast through divestment, capital expatriation, tax resistance, tax refusal and tax revolt. Former Secretary of State Alexander Haig told us this flat out in the 1980’s when, being confronted with huge protests over US Central American policy, he said:  “Let them protest all they want as long as they pay their taxes.”

Truer words were never uttered by a US official. Is there any evidence to contradict his statement? Has any other measure had any impact on the war machine? The honest answer is no. Millions of people around the world protested before the 2003 invasion of Iraq. These protests were ignored. No amount of protest or other efforts can stop it, because it doesn’t cut off the empire’s food supply of money and fear. Only by cutting off its funds by not paying taxes can we stop the empire.

Many have said that the US doesn’t need tax money as it survives on endless debt. Yes, the empire lives on debt, but the ability to sell debt is based on the bond rating of US treasury bonds. Most recently in June, 2014 S&P gave the US a AA+ rating with “stable outlook.”

If there is any doubt about the US credit rating, the ability to sell debt to continue financing the empire comes into question. The ability to collect taxes is what maintains the US bond rating. Any reduction of the US bond rating, and interest rates have to go up in order to continue attracting more investment. Then the interest on the debt balloons out of control and becomes unrepayable — never mind the principal, which they have no intention of ever paying back.

By the way, the Tea Party’s efforts to shut down government by refusing to raise the debt ceiling was helping this effort for a time, although for different reasons. They thought that the welfare system is bankrupting the country. This is a laughable claim, because welfare spending looks negligible when compared to military spending. Still, they did manage to lower the bond rating for a time. Shutting down the federal government is a step in the right direction, and since in recent years only the Tea Party has managed to do it, lets give them some credit.

If the US became unable to reliably collect taxes, then its ability to finance the empire with debt would be diminished, and the US would have to turn to increasing taxes — another politically unpalatable choice, especially in the age of the Tea Party, when the empire’s main constituency is dead-set against more taxes. So it is absolutely clear that the only thing that could stop the empire is a tax revolt. It wouldn’t even have to be that big; the slightest question about the ability of the federal government to collect taxes could reduce the bond rating. Even a minor reduction could raise interest rates enough to make the US debt unrepayable.

Let's get down to brass tacks:  How do you avoid paying taxes, when the IRS withholds our salaries, and the tables are rigged to withhold about 15% more than necessary on average, so 80% of people get a refund? Did you think that this is a coincidence? No, this is a one-year interest-free loan to the empire from taxpayers. But it’s actually quite simple not to pay taxes. Get a W-4 form, write EXEMPT in the space provided, and turn it in to your friendly HR office. Your employer is not allowed to change it unless directed by the IRS. Normally they have no reason to question it.

Here’s what happened last time it was tried on a big scale
. In 2007, Code Pink joined the War Resisters League to organize a national project for war tax refusal, to “Stop Bush’s Wars.” This was not a true tax revolt, just more or less a referendum on how many people would potentially support withholding a portion of their taxes owed, even a token amount. The online petition asked people if they would be willing to commit to withhold some of their taxes, even $1, if 100,000 other people would agree to do the same. Out of the US population of 316 million, how many people do you think signed it? About 2,000. So you see, there is not much evidence that people will do the only thing that could stop the empire:  a true Tea Party tax revolt.

What this implies is that the empire will continue to churn along, and debt will continue to build up, because any other approach to paying for it is not feasible, and therefore collapse is inevitable. The aftermath of collapse is unpredictable; maybe there will be a soft landing, maybe not. But unless you are willing to engage in some form of tax revolt, collapse is inevitable. You will get to live with the results:  stage a tax revolt now, or face collapse later.

Are you sure you want to take your chances on collapse? The results of a personal tax revolt are predictable:  retribution with penalties and interest from the IRS; living in fear of having your salary, your property, even your house seized, or worse, your door broken down by federal agents (although these extreme measures don’t happen too often, they happen often enough to instill fear). Perhaps there would be loss of income, or even your job. Losing one’s job often leads to depression, divorce, drug or alcohol abuse, etc. So you may prefer collapse after all:  loss of your savings, no heat, electricity or trash removal, shops looted or closed, armed gangs roaming the streets... Your choice!

On the other hand, collapse might go well! Hope springs eternal in the optimistic American heart. We are (or used to be) the “can-do” people. Maybe we can-do collapse better than anyone else? Doubtful though if you read Dmitry Orlov’s Collapse Gap presentation.

The results of collapse later are likely to be worse then the effects of tax revolt now. Especially, since the IRS takes years to catch up to exempt W-4 forms, and it would be even harder to crack down if it were being was done en masse. But it’s perfectly understandable if you opt to do nothing now and suffer no consequences, while engaging in ineffective protest to assuage your conscience. You probably have a family to support, an expensive hobby, or some other excuse. So you decide to take your chances with collapse later. After all, collapse might turn out OK for you! This psychology is quite understandable. I truly hope that collapse will be as painless as you wish it will be, but somehow I doubt it. Good luck though! Whatever happens, you will have to live with your decision for the rest of your life — be it long or short.

Signed, expat and long-time conscientious tax refuser, Gary Flomenhoft.

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Just in time for another Republican victory!

The jobs report touting the dynamic growth of part-time employment in the U.S.

Yay, US!

Unemployment in America:  Another Fabricated Jobs Report


By Dr. Paul Craig Roberts

Global Research, December 08, 2014

Friday’s payroll jobs report is another government fairy tale or, to avoid polite euphemisms, another packet of lies just like the House of Representatives Resolution against Russia and every other statement that comes out of Washington.

Washington is averse to truth.  Washington can only lie.

First let’s pretend that the 321,000 new jobs that the government claims the economy created in November are true, and let’s see where these jobs are.

Specialty trade contractors, which I think are home and office remodelers, accounted for 20,000 jobs. I doubt that people are putting money into houses and buildings that are worth less than the mortgage.

Manufacturing accounted for 28,000 – a very high monthly figure for recent years, one that is unbelievable in view of the rise in the trade deficit and declines in consumer spending on furniture (-3.8%), major appliances (-8.3%), women’s apparel (-17.7%), and household textiles such as towels and sheets (-26.5%), and when US business investment consists of corporations repurchasing their own stocks.

The rest of the claimed jobs are in private domestic services, that is, they are third world jobs.  Retail trade claims 50,200 and transportation and warehousing claims 16,700. These numbers are impossible to believe in view of the closings of middle class department stores and Black Friday and Cyber Monday sales flops.

Financial activities claims 20,000, most of which appear to be insurance related – perhaps the growth of Obamacare bureaucracy.

Professional and business services claims 86,000, a very large number for recent years.  What are professional and business services?

Professional and business services are  “accounting and bookkeeping services” (16,400 jobs) – a possible (temporary) increase as W2s for 2014 are coming due to be issued – and ”administrative and support services (40,600 jobs) – mainly temps.

Next we come to “health care and social assistance” with 37,200 jobs concentrated in “ambulatory health care services” and “social assistance.”

Then we have “food services and drinking places” with 26,500 claimed jobs.

Bringing up the rear is Government employment with 7,000 jobs.

What are we to make of these job claims?

It is unlikely that there were 26,500 new jobs for waitresses and bartenders when consumer spending on restaurants, alcohol, and entertainment declined by 3.8%, 4.5%, and 5.4%http://www.zerohedge.com/news/2014-12-02/middle-class-spending-crash-explained   Restaurants and bars do not hire more people when demand is dropping.

No one hired 50,200 new retail clerks when anchor stores of shopping centers are closing and strip malls stand abandoned in unfinished construction.

If we are sufficiently gullible to believe the BLS jobs report of 321,000 new jobs in November, we should be disturbed that the vast bulk of the jobs are third world domestic service jobs that do not produce exports to offset the massive trade deficit of the US offshored economy. Moreover, the majority of these jobs do not produce sufficient income for a person to establish a household or qualify for a mortgage or car loan.

America is bleeding herself dry so that corporate executives and shareholders can live the high life on bonuses and capital gains resulting from exploited foreign labor and the destruction of the American middle class.

Now, let’s move on to other conclusions.  John Williams, an expert on government statistical data, points out, ignored of course by the presstitute media, that full-time employment in America today is 2,400,000 less than employment in 2007.

What this means is that the US is short 2.4 million jobs from 7 years ago. So how is there an ongoing recovery? In the meantime the population has grown.

Remember, the official unemployment rate is low, because discouraged workers who cannot find jobs are not counted as unemployed.  To be counted as unemployed, you have to be actively searching for a job. As job search is expensive and unemployed people have no money, when job search produces no results people give up. They are unemployed but not counted as such.

John Williams points out that most of the 321,000 new jobs were created by manipulating seasonal adjustments and by the birth-death model that arbitrarily adds jobs that the BLS model assumes were created that month.  The BLS never provides any proof of those phantom jobs.

John Williams also points out that many of the payroll jobs are part-time jobs and one person often has several jobs. As no one can live on one part time job, many households and individuals are sustained by multiple part-time jobs. The jobs are not a measure of the number of employed, because many persons hold several jobs in order to make ends meet.

Keep in mind that much of the increased activity in the highly touted payroll employment numbers is tied to multiple part-time jobs held by individuals.  In other words there is double and triple counting of those employed.

The alleged “recovery” is based on severely understated inflation. When an item in the inflation index rises in price, a lower priced item is substituted for it or the price increase is called a “quality improvement” and not registered in the inflation index. This keeps the official inflation rate low.  

Therefore, when nominal GDP is deflated by the understated inflation index, real GDP growth is the result. The growth is an illusion. In fact, the “real” GDP growth is merely the non-measured price rises or inflation that is not captured by the erroneous methodology.

There is practically no official inflation, but somehow the price of ground beef rose 17 percent during the year.http://www.globalresearch.ca/low-inflation-the-price-of-ground-beef-has-risen-17-percent-over-the-past-year/5409588  Presstitutes and PR flacks explain away the price rise as the result of drought while others blame the price increase on smaller beef herds.

With inflation outpacing the growth of real incomes, consumer purchasing power is falling. Real spending fells with the fall in purchasing power. John Williams’ inflation estimates are much higher than the government’s and indicate that the bulk of the population is experiencing extreme financial hardship.

An economy based on consumer spending cannot grow when real consumer incomes and/or consumer credit do not grow.  As these are not growing, the “recovery” is a fiction created by a measure designed to understate inflation.

In the 21st century “democratic” Western policymakers have brought about an extraordinary concentration of income and wealth in elite hands, while subjecting the vast majority of Western populations to financial stress.

The ladders of upward mobility have been taken down. A new aristocracy of wealth has been created along with a militarized police state to defend the aristocracy’s interests. A political-economic-social system has been created in the West in which only the elite have a stake.

This stake is based on a house of cards.  The utterly corrupt central banks of the West, a collection of gangsters, have kept the house of cards standing longer than I thought possible. But it will be a historical first if a house of cards stands forever. The derivatives exposures of four American banks exceed by several times the world GDP.  There is no way these exposures are covered by the banks’ capital or by their depositors deposits.

Wall Street and the presstitute media have manufactured the impression that all is well, and those fools driven by greed have gone along with the manufactured impression.  But the facts are otherwise.
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*  This is the 36th Dead Banker of the year (via Beforeitsnews):

1) David Bird, 55, long-time reporter for the Wall Street Journal working at the Dow Jones news room
2) Tim Dickenson, a U.K.-based communications director at Swiss Re AG
3) William Broeksmit, 58, former senior manager for Deutsche Bank
4) Ryan Henry Crane, age 37, JP Morgan
5) Li Junjie, 33, Hong Kong JP Morgan
6) Gabriel Magee, 39, age JP Morgan employee
7) Mike Dueker, 50, who had worked for Russell Investments
8) Richard Talley, 57, was the founder and CEO of American Title (real estate titles)
9) James Stuart Jr. 70, Former National Bank of Commerce CEO was found dead in Scottsdale, Ariz
10) Jason Alan Salais, 34 year old IT Specialist at JPMorgan since 2008
11) Autumn Radtke, 28, CEO of First Meta, a Singapore-based virtual currency trading platform
12) Eddie Reilly, 47, investment banker, Vertical Group, New York
13) Kenneth Ballando, 28, investment banker, Levy Capital, New york
14) Joseph A. Giampapa, 55, corporate bankruptcy lawyer, JP Morgan Chase
15) Jan Peter Schmittmann, 57, voormalig topbestuurder ANB/AMRO, Laren, Nederland
16) Juergen Frick, 48, CEO Bank Frick & Co AG, Liechtenstein
17) Benoît Philippens, 37, directeur BNP Parisbas Fortis Bank, Ans, België.
18) Lydia…, 52, bankier Bred-Banque-Populaire, Parijs
19) Andrew Jarzyk, 27, bankier, PNC Bank, New York
20) Carlos Six, 61, Hoofd Belastingdienst en lid CREDAF, België
21) Jan Winkelhuijzen, 75, Commissaris en Fiscalist (voormalig Deloitte), Nederland.
22) Richard Rockefeller, 66, achterkleinzoon elitebankier John D. Rockefeller, Amerika
23) Mahafarid Amir Khosravi (Amir Mansour Aria), 45, bankeigenaar, zakenman en derivatenhandelaar, Iran
24) Lewis Katz, 76, zakenman, advocaat en insider in de bancaire wereld, Amerika
25) Julian Knott, Directeur Global Operations Center JP Morgan, 45, Amerika
26) Richard Gravino, IT Specialist JP Morgan, 49, Amerika
27) Thomas James Schenkman, Managing Director Global Infrastructure JP Morgan, 42, Amerika
28) Nicholas Valtz, 39, Managing Director Goldman Sachs, New York, Amerika
29) Therese Brouwer, 50, Managing Director ING, Nederland
30) Tod Robert Edward, 51, Vice President M & T Bank, Amerika
31) Thierry Leyne, 48, investeringsbankier en eigenaar Anatevka S.A., Israël
32) Calogero Gambino, 41, Managing Director Deutsche Bank, Amerika
33) Shawn D. Miller, 42, Managing Director Citigroup, New York, Amerika
34) Melissa Millian, 54, Senior Vice President Mass Mutual, Amerika
35) Thieu Leenen, 64, Relatiemanager ABN/AMRO, Eindhoven, Nederland
36) Geert Tack, 52, Private Banker ING, Haaltert, België


_ _ _ _ _ _ _

Hughes’ statement reflects the fundamental bankruptcy of a liberal cast of mind that holds that enlightenment on social issues is the defining feature of modern liberalism; economic injustices and inequities are secondary or tertiary concerns, if they are concerns at all. This liberalism — more precisely, neoliberalism — makes its peace with the plutocracy. Marriage equality and reproductive freedom are ripe for public debate, but you dare not question the underlying economic order in the U.S. Tweaks around the edges are fine — perhaps the wealthy could stand to pay a little more in income taxes — but let’s not go overboard.

This is not to say that social issues don’t matter, or that liberals and progressives should abandon them. LGBT people continue to face systemic discrimination because of who they are, while opponents of women’s rights are unyielding in their determination to strip them of self-autonomy. But a liberalism that doesn’t ask big questions, fails to scrutinize social arrangements, and accedes to corporate power is incurious and vapid.

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