Monday, May 25, 2015

Guest Column by Noam Chomsky

Noam Chomsky Holds the New York Times to Account
Paul Craig Roberts
I can remember when the New York Times was only partly a CIA asset using its ink in support of Washington’s lies. The other part of the paper was the upper class paternalistic liberalism of that time. The New York Times helped to destroy America.
Washington has taken the place of America and now the Times serves full time to protect Washington. All the troubles in the world originate independently of Washington, which is always trying to do good for everybody and to maintain stability for the One Percent.
Stability trickles down. If the One Percent couldn’t afford their $750,000 Franck Muller wrist watches and their $700,000 Mont Blanc jewel-encrusted pens, their $50,000,000 yachts, and $42,000 Louis Vitton handbags carried by $100,000 bodyguards, the rest of us would be down and out. I mean, really, what would be our fate if hedge fund managers didn’t collect their $575,000,000 bonuses each year and the Federal Reserve didn’t print trillions of dollars with which to buy the bad assets of the deregulated banks too-big-to-fail”? There would be nothing to trickle down to those minimum wage part-time Walmart jobs. If the rich weren’t ripping us off, we would be even worse off!
That’s the way the New York Times and its chief fool, Thomas Friedman, reason.
Here is Noam Chomsky explaining how the Times covers up Washington’s crimes with platitudes:
The “Paper of Record” Is Pure Propaganda
Noam Chomsky

How to Honor Memorial Day

Avoid euphemisms like "the fallen" and expose the lies about what a great idea it was to start those wars.

Memorial Day: Praying for Peace While Waging Permanent War?

Memorial Day is, by federal law, a day of prayer for permanent peace. But is it possible to honestly pray for peace while our country is far and away number one in the world in waging war, military presence, military spending and the sale of weapons around the world?

Chris Hedges: Our Mania for Hope Is a Curse

Guest Column by Nomi Prins: Clinton and the Bankers

Clinton Destroyed The Financial System
Nomi Prins points out how Wall Street and the Big Banks used money to seduce the Clintons and then used the Clintons to remake the US financial system in the interest of the maximum profits of the Big Banks.
Try to imagine your fate if the Clintons get a second crack at your wellbeing.

Read Nomi:
The Clintons and Their Banker Friends
By Nomi Prins

McCain asks for strategy to end terrorism. Here’s one: US military arrests .01% War Criminals like McCain

Senator McCain and other .01% “leaders” in government and corporate media should be arrested for treason because according to Article III of the US Constitution, their support for obvious unlawful Wars of Aggression all based on lies directly cause US military to suffer war upon them. They should also be arrested for the most important War Crime: Wars of Aggression. States should also issue arrest warrants for premeditated First Degree Murder of state-resident US military killed in these unlawful wars.

Inflation Watch: Prices To "The Happiest Place On Earth" Are Up 2900% Since 1971

Having previously shown that money can buy happiness,it appears, as Bloomberg reports, that the cost of buying that happiness is soaring. With well-managed government-provided statistics on inflation, why would one look elsewhere for clues as to the declining standards of living across much of America... but look we did and with wages stagnant, the 2900% surge in prices to Disneyland since 1971 makes 'the happeist place on earth' a place only the wealthy can afford to visit.


May 25, 2015
Santiago, Chile
Historian Will Durant once wrote “in the last 3421 years of recorded history only 268 have seen no war.”
This is astounding. Warfare is constantly with us, often for the most absurd reasons.
These days we’re told that the War on Terror makes us more free.
We’re programed on days like Memorial Day to sing songs about our freedom and to thank the people in uniform for making us more free.
The question I would respectfully submit is, do you feel more free today than you did 5, 10, 20 years ago?
We now live in an era of unprecedented government intrusion.
Senior citizens are thrown in jail for failing to file disclosure forms.
Spy agencies arrogantly engage in illegal surveillance on their own citizens.
And excessive force is so commonplace it barely registers as newsworthy any more.
Curiously a number of polls from 2013 and 2014, including Gallup and the Washington Post, actually show that more people are afraid of the government than of terrorism itself.
This isn’t freedom. And it’s a complete myth that soldiers fight and die in the name of freedom anymore.
Warfare today means that a few people at the top of the military industrial complex, banking, and oil services companies become extremely rich. And everyone else pays the price.
The price for everyday citizens is having less freedom than before.
The price for future generations is inheriting a tremendous war debt.
And the price for soldiers themselves is coming home wounded, limbless, or not at all.
In today’s podcast, I introduce you to Joe, one of those recent veterans who lost his right leg.
I recently met him while in the US, and he has an unbelievable story.
Despite losing a limb in combat, Joe can’t get a new leg because the FDA won’t approve the procedure that he needs.
It’s called osseointegration. And the FDA thinks that it might be too risky for Joe.
Risky. Kind of like being in a combat zone in a country that never should have been invaded to begin with for reasons that were all lies, all to support a war that only makes the country less free.
So since the government doesn’t think that Joe is responsible enough to make his own decisions, he now has to go overseas and pay tens of thousands of dollars out of his own pocket.
Joe doesn’t have the money; so a family member set up a donation page on the Internet trying to get help. (I’m not publishing the link here because I’m going to take care of it myself.)
It’s amazing when you think about it– a combat veteran who lost a leg supposedly fighting for ‘freedom’ can’t have the medical procedure he needs because a destructive government bureaucracy.
That’s what freedom means today in America. And nobody’s fighting for it.
Soldiers are off risking life and limb for oil companies, banks, and defense contractors. And citizens are distracted with bread and circuses.
All the while, government power continues to expand at the expense of the individual.
So today as we’re told to remember the fallen, we might also take a moment to remember the freedom we once had.
And to think through the options for winning it back once again.
You can listen in on today’s Podcast, and learn more about Joe’s unbelievable story, here:
Until tomorrow, 
Simon Black 


One arrested after bomb squad detonates pressure cooker found in car near Capitol



But We Had To Arrest SOMEONE!

Sunday, May 24, 2015


Interest Rates & the Collapse of Public Confidence

QUESTION: If we truly are a moving to a cashless society as is evident, and that is massively deflationary, which I agree with, wouldn’t that drive govt. yields LOWER?  How do you reconcile a sovereign debt crisis and rising yields with a massive slowdown in inflation and growth that these misguided policies are driving us towards? Given all the cash out there looking for stores of value (like the $170mm Picasso), wouldn’t they just park it into government bonds if there is a massive slowdown of both the velocity of money and economic growth?  Or perhaps we see some sovereign yields like in Europe spike while others like the US go sharply lower based on the cap flows?  Although that wouldn’t match your prediction that ALL sovereign yields will rise together.
ANSWER: This is the complexity that will twist many people’s minds. All of what you say is logical under NORMAL conditions. People park in government bonds when they distrust the private sector. But what happens when they distrust government? The tables reverse and the dealer is now the people.

It is always a matter of confidence. When capital loses confidence in government, it flees to the private sector but you have to understand at that point it is not about profit – it is about survival. At the peak of the crisis in 2009, rates on government short-term paper went negative. People were willing to pay for safety. The $170 million Picasso is by no means someone buying expecting to make a profit. They are parking money.


Yields will rise as we just saw in the Bunds as capital is shifting from long to short end. But then with the first crack in government debt, capital will look around and ask who is next. Read Herbert Hoover’s Memoirs 1931 Chapter and look at what he describes is the movement of capital that is the same way it moved in 2010. Look at the difference between corporate and government bonds during the Depression. Granted, the US did not default, but it did devalue the dollar in 1934. That is a reduction in the value of an outstanding bond so it is a partial default. Capital shifted to the private sector after the first fake out to the upside side in rates with the Sovereign Debt Crisis in 1931. As cities in the US began to default, you can see that the premium on corporate paper over government dropped sharply illustrating that smart money figured out the problem was government despite what the press was reporting.

As capital withdraws from the public sector (both federal & state/local worldwide), that will drive rates higher. The lower rates are setting in motion a massive collapse in pensions and the elderly cannot survive off of their savings. Moreover, the Fed will be compelled to raise rates if the share market rises despite the economic decline. If they do not, they will be accused of creating the bubble.

This is all intertwined. Try to open your mind and be like a trader just following the trend and the capital flows. The market is always right – it cannot be wrong. Only we are wrong for when the market does something we did not anticipate, our analysis is at fault not the market.

Jean-Claude Juncker is creating a Political EU Commission – Non-Politicians Get Out

Juncker Jean-Claude
Incoming European Commission president Jean-Claude Juncker has cleverly created an EU executive that is essentially former politicians only.His intention has been he wants only political experience to become a commissioner. He began soliciting a number of ex-prime ministers on his team who know the job and how to handle public opinion.
Juncker realized that the EU is on the brink of a meltdown. He wants only politicians who know how to play the game to shift even more power to Brussels. This is a big gamble for it demonstrates they still refuse to reform a serious structural mistake.

Business Cycle & Economists

BusinessCycle-Waves of Creative Destruction
COMMENT: You are correct. I went to the London …. and they said there was a business cycle but it was random and but it could not be defined.
REPLY: Yes. Somehow everything inverted after Keynes. Even Marx never said there was no business cycle nor did Keynes. Both sought to manipulate it, but they did not deny its existence. This evolution to a state of denial has taken place post-Keynes. Paul Volcker explained it best in 1978 within his Rediscovery of the Business Cycle:
“The Rediscovery of the Business Cycle – is a sign of the times. Not much more than a decade ago, in what now seems a more innocent age, the ‘New Economics’ had become orthodoxy. Its basic tenet, repeated in similar words in speech after speech, in article after article, was described by one of its leaders as ‘the conviction that business cycles were not inevitable, that government policy could and should keep the economy close to a path of steady real growth at a constant target rate of unemployment.”
The economists who are in a state of denial are extremely dangerous people. Like Rogoff of Harvard, they assume we are sheep and that economists and government possess both the mental/physical capacity and the right to manipulate the people. I disagree with that entirely. So I say stop criticizing and PROVE there is no business cycle and that government has been capable to preventing a recession even one time.
I for one would love to split the country in two and all those people who want to control others should all go to the left side and leave the rest of us alone on the right side of the divide. The problem is, they always want to rob what other people have to make their world better for them. They are not satisfied with their own productivity, they covet what everyone else has without having to work as hard for it. The bottom line – we should have less human rights to be free for we possess something they want.

BREXIT – Bank of England Researching Departing from EU

The Bank of England is studying the implications of a possible British exit from the European Union where it slipped in an email to the Guardian acknowledging such a study. This is standard operating procedure for the BoE and it should be expected. It is by no means confirmation that Britain will leave. Rather, it is studying what if that ends up as the case given the political tensions rising over the Euro and demands upon Britain to send Europe money.
British Prime Minister David Cameron, who was re-elected on May 7, has pledged to reshape Britain’s ties with the EU before holding an in-out membership referendum by the end of 2017. It appears that by that time, the Brits may very well vote to get out. We will run our projection on the political ramifications whether they will vote to exit or not. So far, everything appears more-likely-than-not that Britain will exit the EU for it is unlikely that Brussels will change course. Saving the Euro is all about saving their jobs in Brussels – not about saving the European people.

It’s All Connected – Just Open Your Eyes

COMMENT: Hi Marty,
I must say your analysis of the dow for the last six months is simply mind blowing.

Everything you said has been accurate. You are right that most will not get what your saying because they are stuck in a linear world – not a dynamic world.

You did say markets would churn into May. You were SPOT on. I guess what throws most is when you say we could get a high in May/June or September. They can’t process the dynamism. They guys would be good candidates for government work where they can just try control everything.

Indeed I am looking forward to the biggest “mind twisting” trade of the century, as you say. It is looking at this stage like a May/June high – everything is truly connected. You have opened my eyes forever.

Please bring Socrates online soon – it is your piece de resistance. I think I may speak for many when I say that I’m happy to have it just talk to me for now!

Best regards,

REPLY: It is so hard for many to understand how everything is connected and to separate me from the computer. The vast majority who disagree always make this personal rather than the analysis. The churning of the Dow until May was connected to the dollar rise and the collapse of the Euro on just one level. If you would normally see a decline that everyone was calling for in the US market, they missed the currency play which would provide steady support for the Dow.

This is the same connection why I warned the White House in 1985 that forming the G5 to lower the valid of the dollar by 40% would set off a crash in 2 years. That came precisely to the day of October 19th on the Economic Confidence Model 2.15 years from the bottom of the 51.6 year wave 1985.65.

Government is clueless when it comes to currency and this is reflected in mainstream analysis, which just ignores capital flows. Since the Japanese had bought nearly 40% of the US debt and were buying property and stocks in the USA, G5 was telling them they were going to devalue those assets by 40%. A moron would sell if the government told him he would lose 40%.
I was called in by the Brady Commission for we ended up with 4 clients on the Commission investigating team who insisted we be called in. My biggest accomplishment was to stop punitive sanctions against the market and the Brady Commission reported just politely saying they thought foreign exchange had something to do with the Crash.
I wrote to Rubin when he was Secretary of the Treasury and was starting the same jawboning against the Japanese yen. It was Geithner who had to respond.

The reply was short and sweat, but they policy changed and they shut up with trying to talk the yen down again.

The Euro is in trouble for the same reason. They did not understand currency – nobody in government seems to understand this subject matter or for the most part in mainstream media. The EU Commission failed to consolidate the debts even after attending our 1997 London World Economic Conference taking the whole back row. Southern Europe converted their debts to Euro and the currency rose from 80 cents to $1.60. They then owed TWICE as much as what they did before the Euro and then Brussels yells at Greece when they are the victim here and did nothing but get screwed out of this deal.

So the Dow has traded sideways and that was ONLY possible if the dollar rose and the Euro crashed. So it is NOT my personal opinion, this is simply how the world functions for EVERYTHING is truly connected. We forecast the high in gold for 2011 and in 2011 we warned the Dow would run off to New Highs which was even reported by Barron’s. One forecast is connected to the other. This is not a matter of luck. This is a matter of global correlation and opening your eyes.