How The Last Superpower Was Unchained

Authored by Tom Engelhardt via The Asia Times,

Think of it as the all-American version of the human comedy: a great power that eternally knows what the world needs and offers copious advice with a tone deafness that would be humorous, if it weren’t so grim.

If you look, you can find examples of this just about anywhere. Here, for instance, is a passage in The New York Times from a piece on the topsy-turvy Trumpian negotiations that preceded the Singapore summit. “The Americans and South Koreans,” wrote reporter Motoko Rich, “want to persuade the North that continuing to funnel most of the country’s resources into its military and nuclear programs shortchanges its citizens’ economic well-being. But the North does not see the two as mutually exclusive.”

Think about that for a moment. The US has, of course, embarked on a trillion-dollar-plus upgrade of its already massive nuclear arsenal (and that’s before the cost overruns even begin). Its Congress and president have for years proved eager to sink at least a trillion dollars annually into the budget of the national security state (a figure that’s still rising and outpaces by far that of any other power on the planet), while its own infrastructure sags and crumbles. And yet it finds the impoverished North Koreans puzzling when they, too, follow such an extreme path.

“Clueless” is not a word Americans ordinarily apply to themselves as a country, a people, or a government. Yet how applicable it is.

And when it comes to cluelessness, there’s another, far stranger path the United States has been following since at least the George W Bush moment that couldn’t be more consequential and yet somehow remains the least noticed of all. On this subject, Americans don’t have a clue. In fact, if you could put the United States on a psychiatrist’s couch, this might be the place to start.

America contained

In a way, it’s the oldest story on Earth: the rise and fall of empires. And note the plural there. It was never – not until recently at least – “empire,” always “empires.” Since the 15th century, when the fleets of the first European imperial powers broke into the larger world with subjugation in mind, it was invariably a contest of many. There were at least three or sometimes significantly more imperial powers rising and contesting for dominance or slowly falling from it.

This was, by definition, the history of great powers on this planet: the challenging rise, the challenged decline. Think of it for so many centuries as the essential narrative of history, the story of how it all happened until at least 1945, when just two “superpowers,” the United States and the Soviet Union, found themselves facing off on a global scale.

Of the two, the US was always stronger, more powerful, and far wealthier. It theoretically feared the Russian Bear, the Evil Empire, which it worked assiduously to “contain” behind that famed Iron Curtain and whose adherents in the US, always modest in number, were subjected to a mania of fear and suppression.

However, the truth – at least in retrospect – was that, in the Cold War years, the Soviets were actually doing Washington a strange, if unnoted, favor. Across much of the Eurasian continent, and other places from Cuba to the Middle East, Soviet power and the never-ending contest for influence and dominance that went with it always reminded American leaders that their own power had its limits.

This, as the 21st century should have (but hasn’t) made clear, was no small thing. It still seemed obvious then that American power could not be total. There were things it could not do, places it could not control, dreams its leaders simply couldn’t have. Though no one ever thought of it that way, from 1945 to 1991, the United States, like the Soviet Union, was, after a fashion, “contained.”

In those years, the Russians were, in essence, saving Washington from itself. Soviet power was a tangible reminder to American political and military leaders that certain areas of the planet remained no-go zones (except in what, in those years, were called “the shadows”).

The Soviet Union, in short, rescued Washington from both the fantasy and the hell of going it alone, even if Americans only grasped that reality at the most subliminal of levels.

That was the situation until December 1991 when, at the end of a centuries-long imperial race for power (and the never-ending arms race that went with it), there was just one gigantic power left standing on Planet Earth. It told you something about the thinking then that, when the Soviet Union imploded, the initial reaction in Washington wasn’t triumphalism (though that came soon enough) but utter shock, a disbelieving sense that something no one had expected, predicted, or even imagined had nonetheless happened. To that very moment, Washington had continued to plan for a two-superpower world until the end of time.

America uncontained

Soon enough, though, the Washington elite came to see what happened as, in the phrase of the moment, “the end of history.” Given the wreckage of the Soviet Union, it seemed that an ultimate victory had been won by the very country its politicians would soon come to call “the last superpower,” the “indispensable” nation, the “exceptional” state, a land great beyond imagining (until, at least, Donald Trump hit the campaign trail with a slogan that implied greatness wasn’t all-American any more).

In reality, there were a variety of paths open to the “last superpower” at that moment. There was even, however briefly, talk of a “peace dividend” – of the possibility that, in a world without contesting superpowers, taxpayer dollars might once again be invested not in the sinews of war-making but of peacemaking (particularly in infrastructure and the well-being of the country’s citizens).

Such talk, however, lasted only a year or two and always in a minor key before being relegated to Washington’s attic. Instead, with only a few rickety “rogue” states left to deal with – like… gulp … North Korea, Iraq and Iran – that money never actually headed home, and neither did the thinking that went with it.

Consider it the good fortune of the geopolitical dreamers soon to take the reins in Washington that the first Gulf War of 1990-1991, which ended less than a year before the Soviet Union collapsed, prepared the way for quite a different style of thinking. That instant victory led to a new kind of militarized dreaming in which a highly tech-savvy military, like the one that had driven Iraqi autocrat Saddam Hussein’s forces out of Kuwait in such short order, would be capable of doing anything on a planet without serious opposition.

And yet, from the beginning, there were signs suggesting a far grimmer future. To take but one infamous example, Americans still remember the Black Hawk Down moment of 1993 when the world’s greatest military fell victim to a Somali warlord and local militias and found itself incapable of imposing its will on one of the least impressive not-quite-states on the planet (a place still frustrating that military a quarter-century later).

In that post-1991 world, however, few in Washington even considered that the 20th century had loosed another phenomenon on the world, that of insurgent national liberation movements, generally leftist rebellions, across what had been the colonial world – the very world of competing empires now being tucked into the history books – and it hadn’t gone away. In the 21st century, such insurgent movements, now largely religious, or terror-based, or both, would turn out to offer a grim new version of containment to the last superpower.

Unchaining the indispensable nation

On September 11, 2001, a canny global jihadist by the name of Osama bin Laden sent his air force (four hijacked US passenger jets) and his precision weaponry (19 suicidal, mainly Saudi followers) against three iconic targets in the American pantheon: the Pentagon, the World Trade Center, and undoubtedly the Capitol or the White House (neither of which was hit because one of those jets crashed in a field in Pennsylvania). In doing so, in a sense bin Laden not only loosed a literal hell on Earth, but unchained the last superpower.

William Shakespeare would have had a word for what followed: hubris. But give the top officials of the Bush administration (and the neocons who supported them) a break. There had never been a moment like it: a moment of one. A single great power left alone, triumphant, on planet Earth. Just one superpower – wealthy beyond compare, its increasingly high-tech military unmatched, its only true rival in a state of collapse – had now been challenged by a small jihadist group.

To president Bush, vice-president Dick Cheney, and the rest of their crew, it seemed like nothing short of a heaven-sent opportunity. As they came out of the shock of 9/11, of that “Pearl Harbor of the 21st century,” it was as if they had found a magic formula in the ruins of those iconic buildings for the ultimate control of the planet. As secretary of defense Donald Rumsfeld would instruct an aide at the Pentagon that day, “Go massive. Sweep it up. Things related and not.”

Within days, things related and not were indeed being swept up. The country was almost instantly said to be “at war,” and soon that conflict even had a name, the Global War on Terror. Nor was that war to be against just al-Qaeda, or even one country, an Afghanistan largely ruled by the Taliban. More than 60 countries said to have “terror networks” of various sorts found themselves almost instantly in the administration’s potential gunsights. And that was just to be the beginning of it all.

In October 2001, the invasion of Afghanistan was launched. In the spring of 2003, the invasion of Iraq followed, and those were only the initial steps in what was increasingly envisioned as the imposition of a Pax Americana on the Greater Middle East.

There could be no doubt, for instance, that Iran and Syria, too, would soon go the way of Iraq and Afghanistan. Bush’s top officials had been nursing just such dreams since, in 1997, many of them formed a think-tank (the first ever to enter the White House) called the Project for the New American Century and began to write out what were then the fantasies of figures nowhere near power. By 2003, they were power itself and their dreams, if anything, had grown even more grandiose.

In addition to imagining a political Pax Republicana in the United States, they truly dreamed of a future planetary Pax Americana in which, for the first time in history, a single power would, in some fashion, control the whole works, the Earth itself.

And this wasn’t to be a passing matter either. The Bush administration’s “unilateralism” rested on a conviction that it could actually create a future in which no country or even bloc of countries would ever come close to matching or challenging US military power. The administration’s National Security Strategy of 2002 put the matter bluntly: The US was to “build and maintain” a military, in the phrase of the moment, “beyond challenge.”

They had little doubt that, in the face of the most technologically advanced, bulked-up, destructive force on Earth, hostile states would be “shocked and awed” by a simple demonstration of its power, while friendly ones would have little choice but to come to heel as well. After all, as Bush said at a Veterans of Foreign Wars convention in 2007, the US military was “the greatest force for human liberation the world has ever known.”

Though there was much talk at the time about the “liberation” of Afghanistan and then Iraq, at least in their imaginations the true country being liberated was the planet’s lone superpower. Although the Bush administration was officially considered a “conservative” one, its key officials were geopolitical dreamers of the first order and their vision of the world was the very opposite of conservative. It harkened back to nothing and looked forward to everything.

It was radical in ways that should have, but didn’t, take the American public’s breath away; radical in ways that had never been seen before.

Shock and awe for the last superpower

Think of what those officials did in the post-9/11 moment as the ultimate act of greed. They tried to swallow a whole planet. They were determined to make it a planet of one in a way that had never before been seriously imagined.

It was, to say the least, a vision of madness. Even in a moment when it truly did seem – to them at least – that all constraints had been taken off, an administration of genuine conservatives might have hesitated. Its top officials might, at least, have approached the post-Soviet situation with a modicum of caution and modesty.

But not George W Bush, Dick Cheney, Donald Rumsfeld and pals. In the face of what seemed like the ultimate in possibilities they proved clueless when it came to the possibility that anything on Earth might have a shot at containing them.

Even among their critics, who could have imagined then that, more than 16 years later, having faced only lightly armed enemies of various sorts, still wealthy beyond compare, still with a military funded in a way the next seven countries couldn’t cumulatively match, the United States would have won literally nothing?

Who could have imagined that, unlike so many preceding imperial powers (including the US of the earlier Cold War era), it would have been able to establish control over nothing at all; that, instead, from Afghanistan to Syria, Iraq deep into Africa, it would find itself in a state of “infinite war” and utter frustration on a planet filled with ever more failed statesdestroyed citiesdisplaced people, and right-wing “populist” governments, including the one in Washington?

Who could have imagined that, with a peace dividend no longer faintly conceivable, this country would have found itself not just in decline, but – a new term is needed to catch the essence of this curious moment – in what might be called self-decline?

Yes, a new power, China, is finally rising – and doing so on a planet that seems itself to be going down. Here, then, is a conclusion that might be drawn from the quarter-century-plus in which America was both unchained and largely alone.

The Earth is admittedly a small orb in a vast universe, but the history of this century so far suggests one reality about which America’s rulers proved utterly clueless: After so many hundreds of years of imperial struggle, this planet still remains too big, too disparate, too ornery to be controlled by a single power. What the Bush administration did was simply take one gulp too many and the result has been a kind of national (and planetary) indigestion.

Despite what it looked like in Washington once upon a time, the disappearance of the Soviet Union proved to be no gift at all, but a disaster of the first order. It removed all sense of limits from America’s political class and led to a tale of greed on a planetary scale. In the process, it also set the US on a path to self-decline.

The history of greed in our time has yet to be written, but what a story it will someday make. In it, the greed of those geopolitical dreamers will intersect with the greed of an ever wealthier, ever more gilded 1%, of the billionaires who were preparing to swallow whole the political system of that last superpower and grab so much of the wealth of the planet, leaving so little for others.

Whether you’re talking about the urge to control the planet militarily or financially, what took place in these years could, in the end, result in ruin of a historic kind. To use a favored phrase from the Bush years, one of these days we Americans may be facing little short of “regime change” on a planetary scale. And what a piece of shock and awe that’s likely to prove to be.

All of us, of course, now live on the planet Bush’s boys tried to swallow whole. They left us in a world of infinite war, infinite harm, and in Donald Trump’s America where cluelessness has been raised to a new power.

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Nearly Half Of All Millennials Know Someone Affected By Opiates

The statistics surrounding the American opioid epidemic are becoming more and more alarming with each passing day, it seems. Two weeks ago, we cited a new report claiming that one in five millennial deaths can be attributed not just to drugs – but specifically to opioids.

The study is called “The Burden of Opioid-Related Mortality in the United States,” published Friday in JAMA. Researchers from St. Michael’s Hospital in Toronto, Ontario, found that all opiate deaths — which accounts for natural opiates, semi-synthetic/ humanmade opioids, and fully synthetic/ humanmade opioids — have increased a mindboggling 292 percent from 2001 through 2016, with one in every 65 deaths related to opioids by 2016. Men represented 70 percent of all opioid-related deaths by 2016, and the number was astronomically higher for millennials (24 and 35 years of age).

According to the study, one out of every five deaths among millennials in the United States is related to opioids. In contrast, opioid-related deaths for the same cohort accounted for 4 percent of all deaths in 2001.

Opioid

And today Axios cited a new NBC News/GenForward poll revealing that nearly half of millennials (42%) have been impacted by the opioid crisis in some way, either because they have a friend or family member who is struggling with addiction, or because they themselves are addicted.

Why it matters: Millennials, ages 22 to 37, are expected to make up the largest generation in the U.S. by 2019. Overdose deaths are causing this group of individuals to die at a faster rate that those over 50 years old, according to the CDC.

By the numbers:

  • White male and female millennials have been affected by the opioid epidemic the most — 54% know someone who is caught in the issue.
  • 30% of black millennials say they know someone who has dealt with an opioid addiction. Asian-Americans 26%. Latinos 23%.
  • More people who live in the Northeast part of the U.S. said they know someone who has dealt with opioid addiction than any other region. But about 40% of millennials in the Midwest, South and West still said yes to knowing someone.

Democrats and Republicans have been scrambling to pitch a harm-reduction program to help reduce the number of deaths, but many remain uncomfortable with the idea of needle-exchange vans and clinics that offer emergency services (like supervised injection sites) for addicts operating in their neighborhoods.

Opioid

Furthermore, the political influence of the millennial generation is being affected by the crisis, as more young Americans are arrested (or are too busy feeding their addictions to care much about voting).

Across party lines, roughly half of young Republicans and half of young Democrats say they know somebody struggling with opioid addiction. The future of the epidemic could be greatly impacted by a series of bills wending through Congress right now: One bill seeks to crackdown on illicit fentanyl – a powerful synthetic – another seeks to remove unused prescriptions out of circulation. Another – what Axios describes as “possibly the most significant” – would lift the IMD exclusion, a ban on federal Medicaid money for mental health treatment, allowing adult opioid users to stay at a bed in an institution for 30 days.

Expanding access to opioid treatment would likely do the most to help improve conditions for addicts on the ground. But as it stands, having access to treatment isn’t enough – because nearly all research shows that substance-abuse treatments like rehab are still deeply ineffective treatments for opioids.

When it comes to reducing the number of opioid overdoses, the solution put forth by one small-time Ohio politician still stands out: Just let the addicts die.

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The Hidden Risk Of A Trade Deficit Reduction

Authored by Valentin Schmid via The Epoch Times,

A deal to reduce the trade deficit will have far-reaching consequences for the dollar…

In May, China reportedly offered the United States a $200 billion reduction in its goods surplus with the United States. It would be a major victory for the Trump administration’s tough trade policy on China.

The Chinese authorities so far have confirmed they are willing to buy up to $70 billion more agricultural and energy goods from the United States and they would be able to make good on the promise given the centrally-planned Chinese economy.

But even if China were to follow through and import more from the United States or export less to it – reducing its surplus from the $500 billion in 2017 to $300 billion per year in the future – this would not be the end of the story.

Capital Flows

The problem with the single-handed focus on trade is that international trade between different nations has two sides. One is the goods trade, the other is the trade in capital, which has far-reaching consequences for interest rates and exchange rates.

So far, the United States has financed persistent deficits in goods with persistent surpluses in capital exports. This means foreigners ship BMW cars and Samsung TVs to the United States and end up owning Miami condominiums, Apple stocks, and U.S. Treasury bonds.

Of course, it’s not necessarily the same people who sell the BMWs and get the Apple stock, but the equation applies to the trade balances between nations.

At the end of 2017, foreigners owned $33.8 trillion of U.S. assets with the United States owning $26 trillion of foreign assets, a net deficit of $7.8 trillion, which represents the accumulated trade deficit with the rest of the world from past decades.

Indeed, capital transactions make up 95 percent of international financial flows, compared to 5 percent for trade.

The Balancing Factor

More importantly, these international investment decisions are not made at a top-down level, although they balance out trade surpluses and deficits automatically at the national aggregate.

Because the United States has a very open capital account (there are few restrictions on money moving in and out of the country) and attractive assets (Apple and Miami), it brings in investments from foreign countries with high savings rates like Germany and China.

Both companies and consumers in these countries save more than they spend because of culture, state intervention, and many other reasons. Either way, companies and individuals make asset allocation decisions independently of the national goods surplus their country has with the United States.

So how does the capital account automatically balance with the trade account? “Over 90 percent of the ‘adjustment’ required to balance the accounts lies in the value of currencies,” writes Woody Brock of research firm Strategic Economic Decisions who wrote an excellent paper on the topic.

Because of relatively inflexible supply chains as well as sticky consumer preferences, it takes large moves in currencies and prices to shift demand for goods either up or down.

Not so with capital. Even small moves in the currency lead to traders and investors buying and selling trillions of assets, but also vice versa, where changing economic conditions at home or abroad lead to more or less appetite for U.S. assets.

Reduce the Deficit to Boost the Dollar

Let’s take the reported $200 billion reduction in the trade deficit with China as an example. In this case, sticky U.S. consumer preferences would fall victim to heavy-handed intervention by the Chinese state, and China would export $200 billion less goods to the United States, while producers in China would at first be swamped by more agricultural and energy products than they needed.

Any combination of the two (more exports to China, fewer imports from China) would reduce the trade deficit from the current $500 billion to $300 billion.

What also stays the same is the demand for U.S. dollar assets by Chinese citizens and companies, absent other economic changes or changes in Chinese policies to further control its capital account.

Before the adjustment and at the current exchange rate of 6.41 yuan per dollar, the Chinese are demanding 3.20 trillion yuan worth of dollar assets, or $500 billion.

But after the adjustment, the United States will only supply $300 billion of capital to the Chinese. How to reconcile the difference? The dollar will have to rise to 10.68 yuan in order to supply 3.2 trillion yuan, worth $300 billion, of U.S. capital.

That’s a 66 percent rise in the dollar – which the United States would consider outrageous, since the politicians on this side of the Pacific have been complaining bitterly that the Chinese are artificially undervaluing their currency.

Of course, there will be changes in the asset mix too, as Miami condos will become very expensive for the Chinese, whereas the relative prices of bonds and stocks and their cash flows (interest payments and dividends) as well as upside potentials are not affected by the exchange rate.

In addition, although Chinese now receive less income from exports if they cannot find a substitute market, this does not mean their demand for foreign capital needs to decline. The Chinese pool of yuan savings is so large that even less income through trade would not make a dent in the appetite for overseas assets.

According to surveys conducted by the Financial Times in China, wealthy Chinese want to invest around 30 percent of their assets abroad, with the United States being the preferred destination. Right now, Credit Suisse estimates Chinese household wealth to be in the region of $29 trillion. And this does not include Chinese companies who are buying everything from foreign companies that fit their strategic needs just to get money out of the country.

It’s important to note that this analysis is only mathematically valid in a two-nation world economy. If other trading partners were involved, U.S. consumers could source products from other countries, the global U.S. trade deficit would not be reduced as much, and the yuan would not fall as much.

However, considering the Trump administration wants to reduce the global trade deficit, the analysis becomes valid again, although it is impossible to calculate the impact on all different exchange rate. The only conclusion: If asset allocation preferences around the world don’t shift and the trade deficit with the rest of the world goes down, the dollar would go up. By how much against which rate is impossible to say.

Too Much Volatility

In the two nation world economy case, the adjustment would wreak havoc with the Chinese regime’s careful plans to centrally manage its currency, which is the biggest reason the Chinese would want to test the waters first with a $70 billion increase in imports and a corresponding reduction in the trade surplus.

Even in the multilateral word economy scenario, adjustments would take time and exchange rate volatility would increase, although the effects would wear off eventually.

Interestingly enough, tariffs on Chinese goods would lead to a much similar result. They make Chinese goods more expensive in dollar terms and represent an artificial devaluation in the U.S. dollar. They would thus reduce the trade deficit by limiting Chinese exports to the United States.

What they would not do is limit the amount of capital demanded by the Chinese for U.S. assets. And unless the tariff also includes a surcharge on Chinese investment in the United States (an artificial boost to the U.S. dollar), we would be confronted with similar exchange rate dynamics as in the example above.

In either case, absent significant changes in U.S. industrial policy and capital goods accumulation, the currency is the only variable to make the United States better off on world markets both from a production and a consumption perspective.

The deal won’t boost U.S. exports and industrial production, but the trade deficit will be reduced and U.S. consumers would get more bang for their buck. So as unlikely as the full $200 billion reduction is about to happen, from a U.S. perspective it may be worthwhile.

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Unprecedented Israeli Strikes Target Iraqi Shia Militias In Syria

A day after a mysterious airstrike close to the Iraq-Syria border reportedly killed over 30 Syrian government soldiers and Iraqi paramilitary forces backed by Iran, a US official has told CNN the attack was carried out by Israel and not by the US coalition.

Syrian state media blamed the strike on the US-led coalition — though in the immediate aftermath any level of confirmation or evidence was hard to come by. The claims prompted the US coalition spokesman to issue a formal denial, calling Syria’s accusation “misinformation” as US-backed SDF forces are only operating east of the Euphrates, and not near Abu Kamal, which lies west, according to the statement

If confirmed it would mark the first time in the war that Iraq’s paramilitary forces have been targeted by Israel. The Iran-backed Popular Mobilization Units (PMU, or PMF) have increasingly coordinated with the Syrian Army as well as pro-Syrian irregular Shia fighters during anti-ISIS operations along Syria’s eastern border of late. 

The incident marks the second time in three weeks that the Syrian Army has accused the US Coalition of bombing their troops in southeast Syria; however it is uncertain as yet how Damascus will respond to this new claim of Israeli responsibility. 

The CNN source is an unnamed US official, who gave no other details on the strike, including how many jets conducted the mission or the flight path into the Iraq-Syria border area, though CNN notes, “The area is some distance from Israel and Israeli jets would have had to overcome significant logistical hurdles to strike that area.”

And as Al Masdar News points out, Israel “has never attacked the Syrian military this far from their border, so if they were behind this – this would be the first time they have every bombed the Deir Ezzor Governorate.” 

The last confirmed Israeli strike in Deir Ezzor was in 2007, when Israel destroyed an alleged nuclear reactor in al-Kibar. Up until now in the war confirmed there have been acknowledged Israeli attacks in western Syria, around Damascus, and in the Homs desert (T-4 airbase).

Syrian military sources initially told Reuters that the strikes were conducted by attack drones flying from the direction of U.S. lines. Syrian forces did not respond to the attacks which left dozens of Syrian Army, allied National Defense Forces (NDF), and Iraqi paramilitary troops killed and wounded in the town of Al-Harri, in the Abu Kamal countryside. 

Though casualty numbers have varied slightly — with opposition media site SOHR citing 38 and pro-government sources citing well over 40 — it marks a significant escalation given the high death toll against units which were in the midst of battling remnant ISIS pockets in Syria’s east. 

The attack came the same day that Israeli Prime Minister Benjamin Netanyahu said in a cabinet meeting, “We will take action – and are already taking action – against efforts to establish a militarily presence by Iran and its proxies in Syria both close to the border and deep inside Syria. We will act against these efforts anywhere in Syria.”

Netanyahu’s words follow similar statements made last week wherein he accused Iran of importing 80,000 Shia fighters into the Syrian conflict from places like Pakistan and Afghanistan in order to both “covert” Syrian Sunnis and prepare attacks against Israel, claiming that a broader “religious war” would emerge. 

“That is a recipe for a re-inflammation of another civil war – I should say a theological war, a religious war – and the sparks of that could be millions more that go into Europe and so on … And that would cause endless upheaval and terrorism in many, many countries,” Netanyahu said before an international security forum in Jerusalem last Thursday.

“Obviously we are not going to let them do it. We’ll fight them. By preventing that – and we have bombed the bases of this, these Shi’ite militias – by preventing that, we are also offering, helping the security of your countries, the security of the world,” he said.

Currently, new reports of a “massive build-up” of Syrian Army troops and their allies in Syria’s south continue to emerge after Assad recently reaffirmed his desire to liberate “every inch” of sovereign Syrian territory. As the army conducts operations increasingly close to the Israeli-occupied Golan Heights, the likelihood of more direct Syria-Israel clashes to come is high. 

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China Enters The Trade Trap

Via Investing In Chinese Stocks blog,

Perhaps nobody knows what President Trump will do next, including President Trump, but right now it looks like he has successfully maneuvered China into a trade trap.

The goal is to slow China’s economy such that military modernization slows and its economy cannot catch up with the United States. Meanwhile, implementation of this strategy is called “Beijing’s playbook” and the whole time President Trump speaks positively about Xi Jinping and China’s help in other areas.

Bloomberg: Xi to Counter Trump Blow for Blow in Unwanted Trade War

“The Chinese view this as an exercise in self-flagellation, meaning that the country that wins a trade war is the country that can endure most pain,” said Andrew Polk, co-founder of research firm Trivium China in Beijing.

China “thinks it can outlast the U.S. They don’t have to worry about an election in November, let alone two years from now.”

This is the mistake autocrats always make about Western governments and the United States. They view the messy and inefficient political system (intentionally designed that way to protect liberty) as a weakness. They think politicians care more about elections than anything else. They see the difficulty in reaching consensus as a weakness. However, they miss the fact that democratic governments enjoy greater legitimacy. If the U.S. reaches a majority in favor of confronting China on trade, then President Trump has the far stronger political hand.

Confronting China on trade raises President Trump’s popularity. His base and independent voters favor this policy.

Democrats oppose him because he is Trump, but they would lose votes if the only issue in November was “Confront China on trade, yes or no?”

If President Trump makes it through November losing only a few House seats (as is typical of nearly all mid-term elections) and sticks to his China trade policy, he will come out the other side incredibly strengthened on trade heading into 2020. If the public begins to view the trade war more as war than trade, they will want to win the war of attrition.

China’s “ace” remains yuan devaluation.

When I wrote The Logic of Strategy: Yuan Devaluation and the Road to Trade War, I expected economics to lead the way as the yuan devalued. Although the yuan weakened in 2015 and 2016, it was not the substantial depreciation needed to reset the financial system. Still, China created the conditions for a major currency depreciation and U.S. trade policy will soon lean heavily on this pressure point.

Finally, remember that geopolitics is right beneath the surface of the trade war. The U.S. is confronting China in the South China Sea. Pacific nations are turning against China.

ABC: China warns citizens in Vietnam after protests fuel anti-Chinese sentiment

China has warned its citizens in Vietnam after protesters clashed with police over a government plan to create new economic zones for foreign investment that has fuelled anti-Chinese sentiment in the country.

SCMP: China tells Australia to remove its ‘coloured glasses’ to get relations back on track

Relations between the two countries have cooled since late last year when Prime Minister Malcolm Turnbull’s government proposed a bill to limit foreign influence in Australia, including political donations. Beijing saw the move as “anti-China”.

Critics say President Trump’s trade policy is poorly designed and antagonizes allies, but the Logic of Strategy says nations will come around to Trump’s position in the coming months and years.

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DOJ Indicts “Vault 7” Leak Suspect; WikiLeaks Release Was Largest Breach In CIA History

A 29-year-old former CIA computer engineer, Joshua Adam Schulte, was indicted on charges of masterminding the largest leak of classified information in the spy agency’s history, according to the Department of Justice.

Schulte, who created malware for the agency to break into adversaries computers, has been sitting in jail since his August 24, 2017 arrest on charges of posessing and transporting child pornography – which was discovered in a search of his New York apartment after the agency identified him as the prime suspect one week after WikiLeaks published the “Vault 7” series of classified files. Schulte was arrested and jailed on the child porn charges alone ostensibly as they built the case leading to Monday’s additional charges.

[I]nstead of charging Mr. Schulte in the breach, referred to as the Vault 7 leak, prosecutors charged him last August with possessing child pornography, saying agents had found 10,000 illicit images on a server he created as a business in 2009 while studying at the University of Texas at Austin.

Court papers quote messages from Mr. Schulte that suggest he was aware of the encrypted images of children being molested by adults on his computer, though he advised one user, “Just don’t put anything too illegal on there.” –New York Times

Monday’s announcement by the Department of Justice (DOJ) adds the additional charges of stealing classified national defense information from the Central Intelligence Agency in 2016 and transmitting it to WikiLeaks (“Organization-1”). 

The Vault 7 release – a series of 24 documents which began to publish on March 7, 2017 – reveal that the CIA had a wide variety of tools to use against adversaries, including the ability to “spoof” its malware to appear as though it was created by a foreign intelligence agency, as well as the ability to take control of Samsung Smart TV’s and surveil a target using a “Fake Off” mode in which they appear to be powered down while eavesdropping. 

The CIA’s hand crafted hacking techniques pose a problem for the agency. Each technique it has created forms a “fingerprint” that can be used by forensic investigators to attribute multiple different attacks to the same entity.

The CIA’s Remote Devices Branch’s UMBRAGE group collects and maintains a substantial library of attack techniques ‘stolen’ from malware produced in other states including the Russian Federation.

With UMBRAGE and related projects the CIA cannot only increase its total number of attack types but also misdirect attribution by leaving behind the “fingerprints” of the groups that the attack techniques were stolen from.

UMBRAGE components cover keyloggers, password collection, webcam capture, data destruction, persistence, privilege escalation, stealth, anti-virus (PSP) avoidance and survey techniques. –WikiLeaks

Schulte previously worked for the NSA before joining the CIA, then “left the intelligence community in 2016 and took a job in the private sector,” according to a statement reviewed in May by The Washington Post.

Schulte also claimed that he reported “incompetent management and bureaucracy” at the CIA to that agency’s inspector general as well as a congressional oversight committee. That painted him as a disgruntled employee, he said, and when he left the CIA in 2016, suspicion fell upon him as “the only one to have recently departed [the CIA engineering group] on poor terms,” Schulte wrote. –WaPo

Part of that investigation, reported WaPo, has been analyzing whether the Tor network – which allows internet users to hide their location (in theory) “was used in transmitting classified information.” 

In other hearings in Schulte’s case, prosecutors have alleged that he used Tor at his New York apartment, but they have provided no evidence that he did so to disclose classified information. Schulte’s attorneys have said that Tor is used for all kinds of communications and have maintained that he played no role in the Vault 7 leaks. –WaPo

Schulte says he’s innocent: “Due to these unfortunate coincidences the FBI ultimately made the snap judgment that I was guilty of the leaks and targeted me,” Schulte said. He launched Facebook and GoFundMe pages to raise money for his defense, which despite a $50 million goal, has yet to receive a single donation.

As The Post noted in May, the Vault 7 release was one of the most significant leaks in the CIA’s history, “exposing secret cyberweapons and spying techniques that might be used against the United States, according to current and former intelligence officials.” 

The CIA’s toy chest includes:

  • Tools code named “Marble” can misdirect forensic investigators from attributing viruses, trojans and hacking attacks to their agency by inserted code fragments in foreign languages.  The tool was in use as recently as 2016.  Per the WikiLeaks release:

“The source code shows that Marble has test examples not just in English but also in Chinese, Russian, Korean, Arabic and Farsi. This would permit a forensic attribution double game, for example by pretending that the spoken language of the malware creator was not American English, but Chinese, but then showing attempts to conceal the use of Chinese, drawing forensic investigators even more strongly to the wrong conclusion, — but there are other possibilities, such as hiding fake error messages.”

  • iPads / iPhones / Android devices and Smart TV’s are all susceptible to hacks and malware. The agency’s “Dark Matter” project reveals that the CIA has been bugging “factory fresh” iPhones since at least 2008 through suppliers. Another, “Sonic Screwdriver” allows the CIA to execute code on a Mac laptop or desktop while it’s booting up.

  • The increasing sophistication of surveillance techniques has drawn comparisons with George Orwell’s 1984, but “Weeping Angel”, developed by the CIA’s Embedded Devices Branch (EDB), which infests smart TVs, transforming them into covert microphones, is surely its most emblematic realization.
  • The Obama administration promised to disclose all serious vulnerabilities they found to Apple, Google, Microsoft, and other US-based manufacturers. The US Government broke that commitment.

“Year Zero” documents show that the CIA breached the Obama administration’s commitments. Many of the vulnerabilities used in the CIA’s cyber arsenal are pervasive and some may already have been found by rival intelligence agencies or cyber criminals.

In addition to its operations in Langley, Virginia the CIA also uses the U.S. consulate in Frankfurt as a covert base for its hackers covering Europe, the Middle East and Africa.

CIA hackers operating out of the Frankfurt consulate ( “Center for Cyber Intelligence Europe” or CCIE) are given diplomatic (“black”) passports and State Department cover. 

  • Instant messaging encryption is a joke.

These techniques permit the CIA to bypass the encryption of WhatsApp, Signal, Telegram, Wiebo, Confide and Cloackman by hacking the “smart” phones that they run on and collecting audio and message traffic before encryption is applied.

  • The CIA laughs at Anti-Virus / Anti-Malware programs.

CIA hackers developed successful attacks against most well known anti-virus programs. These are documented in AV defeatsPersonal Security ProductsDetecting and defeating PSPs and PSP/Debugger/RE Avoidance. For example, Comodo was defeated by CIA malware placing itself in the Window’s “Recycle Bin”. While Comodo 6.x has a “Gaping Hole of DOOM”.

You can see the entire Vault7 release here.

A DOJ statement involving the Vault7 charges reads: 

“Joshua Schulte, a former employee of the CIA, allegedly used his access at the agency to transmit classified material to an outside organization.  During the course of this investigation, federal agents also discovered alleged child pornography in Schulte’s New York City residence,” said Manhattan U.S. Attorney Geoffrey S. Berman. 

On March 7, 2017, Organization-1 released on the Internet classified national defense material belonging to the CIA (the “Classified Information”).  In 2016, SCHULTE, who was then employed by the CIA, stole the Classified Information from a computer network at the CIA and later transmitted it to Organization-1.  SCHULTE also intentionally caused damage without authorization to a CIA computer system by granting himself unauthorized access to the system, deleting records of his activities, and denying others access to the system.  SCHULTE subsequently made material false statements to FBI agents concerning his conduct at the CIA.         

Schulte faces 135 years in prison if convicted on all 13 charges: 

  1. Illegal Gathering of National Defense Information, 18 U.S.C. §§ 793(b) and 2
  2. Illegal Transmission of Lawfully Possessed National Defense Information, 18 U.S.C. §§ 793(d) and 2
  3. Illegal Transmission of Unlawfully Possessed National Defense Information, 18 U.S.C. §§ 793(e) and 2 
  4. Unauthorized Access to a Computer To Obtain Classified Information, 18 U.S.C. §§ 1030(a)(1) and 2
  5. Theft of Government Property, 18 U.S.C. §§ 641 and 2
  6. Unauthorized Access of a Computer to Obtain Information from a Department or Agency of the United States, 18 U.S.C. §§ 1030(a)(2) and 2
  7. Causing Transmission of a Harmful Computer Program, Information, Code, or Command, 18 U.S.C. §§ 1030(a)(5) and 2
  8. Making False Statements, 18 U.S.C. §§ 1001 and 2
  9. Obstruction of Justice, 18 U.S.C. §§ 1503 and 2
  10. Receipt of Child Pornography, 18 U.S.C. §§ 2252A(a)(2)(B), (b)(1), and 2
  11. Possession of Child Pornography, 18 U.S.C. §§ 2252A(a)(5)(B), (b)(2), and 2
  12. Transportation of Child Pornography, 18 U.S.C. § 2252A(a)(1)
  13. Criminal Copyright Infringement, 17 U.S.C. § 506(a)(1)(A) and 18 U.S.C. § 2319(b)(1)

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What It’s All About: Coercion!

Authored by James Howard Kunstler via Kunstler.com,

It’s worth checking out the YouTube video of this year’s semi-annual Munk Debate held in Toronto this spring. The proposition at hand: Be it resolved, what you call political correctness, I call progress….

For the pro position: Michael Eric Dyson, sociology prof from Georgetown U, and New York Times columnist Michelle Goldberg;

on the con side, Jordan Peterson, psychologist and U of Toronto prof, and Stephen Fry, British actor and screenwriter.

The debate quickly beat a path to identity politics, which make up the actual substance of PC, itself only a method of conveying the substance.

PC acts as a filter for sifting out thought that doesn’t conform to orthodox ideology, and for punishing those who dare to express the filtered-out ideas. So, PC only allows for a narrow range of expressed opinion on identity politics. PC is literally thought-policing. It’s hard to imagine anyone being in favor of that, which is exactly why PC behavior so odious to those of us who value free speech.

The orthodox view in identity politics these days is that “white male cis-heterosexual patriarchal privilege” is responsible for the discontents of women and “people-of-color” – a squishy, mischievous category which obviously doesn’t count Chinese grad students at Harvard or the Asian-Indians in the Silicon Valley C-suites — and demands reparations of one kind or another.

Mr. Peterson laid it out nicely: identity politics assigns everyone to ethnic, racial, and sexual groups, and all the human relations among them amount to never-ending battles for political power. Nothing else matters. Individuals especially don’t matter, only the group. And no group has abused its power more than European white men.

This animating idea comes out of the mid-20th century “post-structural critical theorists” Jacques Derrida and Michel Foucault, whose Marxian views emerged conveniently at a time when women and non-white people were vying for departmental chairs in the college humanities and social science programs, and thus have two generations been indoctrinated.

Well, if human relations are solely about power, than exercising power over others is all that matters. Hence, the key to identity politics: it’s all about coercion, making others do your will by threat of force and force itself. These days, the main threat is depriving heretics and apostates of their livelihood. That’s what happened to Brett Weinstein at Evergreen U in Washington State last year, and to Jordan Peterson himself at the U of Toronto, when he objected loudly and publicly to a new Canadian federal law that sought to punish citizens who refused to use the new menu of personal pronouns for the rapidly multiplying new gender categories (e.g. ze, zir, they, xem, nem, hir, nir….)

Both Weinstein and Peterson refused to be coerced and found themselves inadvertently leading a movement against the pervasive, creeping coercion of our time – which has now spread from the campuses into corporate life, with the HR departments working overtime to enforce thought among employees, because company profits are at stake (e.g. Starbucks day-off for “diversity and inclusion training”).

Most of the sparks in the debate came off the friction between Dyson and Peterson. Dyson, who was ordained as a Baptist minister at age nineteen, relies on the tropes of the pulpit to entertain his audience (or his classes at Georgetown). That theatricality is well-suited to putting across dubious ideas with false authority. In the end, he resorted to plain old name-calling, branding Peterson as “an angry white man.” Peterson did appear deeply annoyed. I could certainly understand why. He’s been suffering the enmity of morons for a couple of years now. But he has them on the run. He’s onto their game and he’s unmasking their mendacious intentions. And offering a framework for understanding human relations that actually comports with reality. In what has been lately a reality-optional culture, that really hurts.

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Hundreds Of WaPo Employees Revolt Over “Shocking Pay Practices”, Ask Bezos To “Share The Wealth”

Over 400 Washington Post employees have signed a public petition to owner Jeff Bezos begging him to improve working conditions and poor pay at the newspaper, following over a year of unsuccessful negotiations with upper management.

The petition notes that over the last year, “the Post has doubled the number of digital subscriptions and increased its online traffic by more than half,” as well as met or exceeded its advertising team’s targets. 

Employees say none of that has trickled down to them, writing that “What we’ve found instead is a profound unwillingness by the Post’s top management to meet us halfway on a lot of the issues that are important to us,” said Metro reporter Freddy Kunkle. 

“All we are asking for is fairness for each and every employee who contributed to this company’s success: fair wages; fair benefits for retirement, family leave and health care; and a fair amount of job security.” –WaPo Employee Petition

Conspicuously absent from the petition is contributing columnist John Podesta, who landed a job snarking at the Trump administration in the Opinion section and is apparently OK with WaPo taking advantage of their employees. 

Another missing signature is The Post’s David Ignatius – a columnist who was outed as a conduit for CIA leaks last January by former NSA analyst John Schindler – who said “When @IgnatiusPost speaks, Langley’s 7th floor lips are moving,” in reference to the CIA director’s office. 

The disaffected WaPo employees have even made a 2 minute video to explain their position. “More than 400 of our colleagues have signed this petition, and they’re just asking you to listen,” says Global Opinions editor Karen Attiah in the video that accompanied the written petition. 

‘More than one year ago, the Guild’s bargaining committee entered into negotiations with the Post, hoping to achieve some of the benefits for our members and share in the success that we’ve had for the past year,’ Freddy Kunkle, Metro reporter and co-chair of the Guild at the Washington Post, said in the video. –Daily Mail

The petition was announced one day after a tweet by Jeff Bezos in which their boss – worth $141 billion, asks for philanthropy ideas. 

President Trump just couldn’t resist…

Your move Jeff.

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Zuesse: How The New York Times Lies About Lies – Obama Vs Trump

Authored by Eric Zuesse via The Strategic Culture Foundation,

Although the New York Times says that President Donald Trump lies vastly more than did President Barack Obama, the definite liar in that comparison – based on the factual record, to be presented here – is the New York Times itself.

It lies in alleging this, which isn’t to say that either President lies more frequently than the other, but instead, that the Times’s calculation fails to count, at all, but instead altogether ignores, some of President Obama’s very worst lies – ones that were real whoppers. These were lies that were essential to his maintaining support among Democrats (such as the owners of this corporation, the NYT, are), and that would keep Democrats’ support only if they failed to judge him by his actual decisions and actions (such as the NYT’s owners do — or else they secretly know the truth on this, but prevent this truth from being published by their employees). Even to the present day, Obama is evaluated by Democrats on the basis of his lies instead of on the basis of his actions. He’s admired for his stated intentions and promises, which were often the opposite of what his consistent actual decisions and actions turned out to be on those very same matters, on which he had, in retrospect, quite clearly lied (though that was covered-up at the time — and still is). 

For example, among the list of lies that the NYT counts from Obama, is excluded Obama’s having asserted on 20 May 2009, at the signing into law of both the Helping Families Save Their Homes Act and the Fraud Enforcement and Recovery Act: “This bill nearly doubles the FBI’s mortgage and financial fraud program, allowing it to better target fraud in hard-hit areas. That’s why it provides the resources necessary for other law enforcement and federal agencies, from the Department of Justice to the SEC to the Secret Service, to pursue these criminals, bring them to justice, and protect hardworking Americans affected most by these crimes. It’s also why it expands DOJ’s authority to prosecute fraud that takes place in many of the private institutions not covered under current federal bank fraud criminal statutes — institutions where more than half of all subprime mortgages came from as recently as four years ago.”

Also not counted, but excluded, by the NYT, as having been an Obama lie, was his 24 January 2012 State of the Union Address assertion: “Tonight, I’m asking my Attorney General to create a special unit of federal prosecutors and leading state attorneys general to expand our investigations into the abusive lending and packaging of risky mortgages that led to the housing crisis. (Applause.) This new unit will hold accountable those who broke the law, speed assistance to homeowners, and help turn the page on an era of recklessness that hurt so many Americans. Now, a return to the American values of fair play and shared responsibility will help protect our people and our economy.”

But both statements were lies. The Inspector General of the U.S. Department of Justice issued on 13 March 2014 its “Audit of the Department of Justice’s Efforts to Address Mortgage Fraud,” and reported that Obama’s promises to prosecute turned out to be just lies. DOJ didn’t even try; and they lied even about their efforts. The IG found: “DOJ did not uniformly ensure that mortgage fraud was prioritized at a level commensurate with its public statements. For example, the Federal Bureau of Investigation (FBI) Criminal Investigative Division ranked mortgage fraud as the lowest criminal threat in its lowest crime category. Additionally, we found mortgage fraud to be a low priority, or not [even] listed as a priority, for the FBI Field Offices we visited.” Not just that, but, “Many Assistant United States Attorneys (AUSA) informed us about underreporting and misclassification of mortgage fraud cases.” This was important because, “Capturing such information would allow DOJ to … better evaluate its performance in targeting high-profile offenders.”

Privately, Obama, early in his Administration, had told Wall Street executives that he would protect them. That statement, made in private to the leaders of Wall Street, turned out to have been honest. Though he lied often to the public, he never (so far as the available public record has shown) did so in private (except that he lied in private to Vladimir Putin, but neoconservatives such as the NYT’s owners and executives and editors don’t mind that at all — but they also don’t count it, at all). 

On 27 March 2009, Obama assembled the top executives of the bailed-out financial firms in a secret meeting at the White House, and he assured them that he would cover their backs; he promised them “My administration is the only thing between you and the pitchforks”. It was never on the White House website; it was leaked out, which is one of the reasons Obama hates leakers (such as Chelsea Manning, Edward Snowden, and Julian Assange). What the DOJ’s IG indicated was, in effect, that Obama had kept his secret promise to them.

Here is the context in which he had said that (from page 234 of Ron Suskind’s 2011 book, Confidence Men, with boldfacings by me):

“My administration is the only thing between you and the pitchforks.”

It was an attention grabber, no doubt, especially that carefully chosen last word.

But then Obama’s flat tone turned to one of support, even sympathy. “You guys have an acute public relations problem that’s turning into a political problem,” he said. “And I want to help. But you need to show that you get that this is a crisis and that everyone has to make some sacrifices.” According to one of the participants, he then said, “I’m not out there to go after you. I’m protecting you. But if I’m going to shield you from public and congressional anger, you have to give me something to work with on these issues of compensation.”

No suggestions were forthcoming from the bankers on what they might offer, and the president didn’t seem to be championing any specific proposals. He had none: neither Geithner nor Summers believed compensation controls had any merit.

After a moment, the tension in the room seemed to lift: the bankers realized he was talking about voluntary limits on compensation until the storm of public anger passed. It would be for show.

Obama said “Everyone has to make sacrifices,” but he was talking to people who simply refused to be included in that “everyone.” As the mega-crooks who had been profiting from the crimes that had brought about the global economic collapse, those “sacrifices” should have been life-imprisonments. Only by means of such accountability, would their successors not try anything of the sort that these banksters had done. But such was not to be the case. So, the crimes continued.

Obama kept his word to them. The banksters got off scot-free, and kept their personal hundreds of millions of dollars ‘earned’.

He had been lying to the public, all along. Not only would he not prosecute the banksters, but he would treat them as if all they had was “an acute public relations problem that’s turning into a political problem.” And he thought that the people who wanted them prosecuted were like the KKK who had chased Blacks with pitchforks before lynching. According to the DOJ, their Financial Fraud Enforcement Task Force (FFETF) was “established by President Barack Obama in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.” But, according to the Department’s IG, it was all a fraud: a fraud that, according to the DOJ, itself had been going on since at least November 2009.

The IG’s report continued by pointing out the Obama-appointed Attorney General’s lies, noting that on 9 October 2012, “the FFETF held a press conference to publicize the results of the initiative,” and:

“The Attorney General announced that the initiative resulted in 530 criminal defendants being charged, including 172 executives, in 285 criminal indictments or informations filed in federal courts throughout the United States during the previous 12 months. The Attorney General also announced that 110 federal civil cases were filed against over 150 defendants for losses totaling at least $37 million, and involving more than 15,000 victims. According to statements made at the press conference, these cases involved more than 73,000 homeowner victims and total losses estimated at more than $1 billion.

“Shortly after this press conference, we requested documentation that supported the statistics presented. … Over the following months, we repeatedly asked the Department about its efforts to correct the statistics. … Specifically, the number of criminal defendants charged as part of the initiative was 107, not 530 as originally reported; and the total estimated losses associated with true Distressed Homeowners cases were $95 million, 91 percent less than the $1 billion reported at the October 2012 press conference. …

“Despite being aware of the serious flaws in these statistics since at least November 2012, we found that the Department continued to cite them in mortgage fraud press releases. … According to DOJ officials, the data collected and publicly announced for an earlier FFETF mortgage fraud initiative – Operation Stolen Dreams – also may have contained similar errors.”

Basically, the IG’s report said that the Obama Administration had failed to enforce the Fraud Enforcement and Recovery Act of 2009. This bill had been passed overwhelmingly, 92-4 in the Senate, and 338-52 in the House. All of the votes against it came from Republicans. (Perhaps Obama was secretly a Republican.) The law sent $165 million to the DOJ to catch the executive fraudsters who had brought down the U.S. economy, and it set up the Financial Crisis Inquiry Commission, and had been introduced and written by the liberal Democratic Senator Patrick Leahy. President Obama signed it on 20 May 2009. At that early stage in his Presidency, he couldn’t afford to display publicly that he was far to the right of every congressional Democrat, so he signed it.

Already on 15 November 2011, Syracuse University’s TRAC Reports had headlined “Criminal Prosecutions for Financial Institution Fraud Continue to Fall,” and provided a chart showing that whereas such prosecutions had been running at a fairly steady rate until George W. Bush came into office in 2001, they immediately plunged during his Presidency and were continuing that decline under Obama, even after the biggest boom in alleged financial fraud cases since right before the Great Depression. And, then, on 24 September 2013, TRAC Reports bannered “Slump in FBI White Collar Crime Prosecutions,” and said that “prosecutions of white collar criminals recommended by the FBI are substantially down during the first ten months of Fiscal Year 2013.” This was especially so in the Wall Street area: “In the last year, the judicial District Court recording the largest projected drop in the rate of white collar crime prosecutions — 27.8 percent — was the Southern District of New York (Manhattan).” On 29 July 2015, Syracuse University’s TRAC Reports headlined “Federal White Collar Prosecutions At 20-Year Low,” and linked to their full study, which showed that, whereas in fiscal year 2004-2005, under George W. Bush, “Bank Fraud” had been the #1 most-prosecuted of all ”white collar crime matters,” it was, in the latest fiscal year, 2014-2015, only #3.

These were extremely serious crimes: they crashed the world’s economy in 2008. But there was no White House interest in pursuing them. Instead, the Obama Administration blocked any such prosecutions, or even investigations into specific cases.

So: if these sorts of lies weren’t outright frauds against the American public, then what could possibly be?

But that’s not all of what belongs in the “whopper” or “Big Lie” category from Obama: he lied constantly about Ukraine, and about Syria, and about Russia and about his intentions toward Russia, and about his proposed international-trade treaties: TPP. TTIP, and TISA. 

None of these whoppers was included in the listing that the NYT presented in their 14 December 2017 article “Trump’s Lies vs. Obama’s”.

I am nonpartisan toward persons and toward political parties, and consider all of America’s Presidents since 1981 (if not since 1968, but with the exception of Carter) to be and have been loathsome people (not even well-intentioned), but ‘news’media such as the New York Times aren’t any more trustworthy (nor more honest) than these Presidents have been, and the pontifications from such ‘news’media (in both their ’news’-reporting and opinion-pieces) are just propaganda, mixtures of truths with lies — and more and more of the public are coming to recognize this disgusting fact, so these media’s pretenses to honesty and trustworthiness are having fewer and fewer believers. But these media claim that fake ‘news’ comes only from their non-mainstream competitors (some of which are actually far more honest than they). Preserving their cartel is crucial to them. And it’s crucial to the people who benefit from this cartel.

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Fiat Currency Always Ends In Collapse

Authored by Tom Lewis via GoldTelegraph.com,

Throughout history, many commodities have been used as currency. Cows, beads, and seashells have all been used in trade. Paper currency is simply more convenient when buying a pack of gum at Walgreens, but it isn’t money. The US government has designated the dollar as currency, while at the same time arbitrarily attributing some type of value to that dollar. Your dollar could be worth X today and Y next month. The US dollar has lost 90 percent of its value since 1950. But it’s still the same dollar.

The Federal Reserve, like most global central banks, continues to print fiat currency at unprecedented speed. As these dollars flood the economy, the value declines. Fiat money has been around for hundreds of years, and many of them have vanished due to hyperinflation.

Precious metal, especially gold and silver, is the only real money. When currency loses its value (for anyone paying attention, the Venezuelan bolivar has lost 96 percent of its value in just one year), gold remains what it has always been: real money and a genuine medium of exchange. Gold always has been and always will be an asset. During the Weimar Republic, the Deutschmark had less value than toilet paper, mostly due to the manipulations of the German central bank. Gold is outside the aegis of any government, although many governments attempt to keep a supply of the precious metal in reserve.

When the fiat currency in your wallet collapses in value, gold will remain a hedge against inflation and other economic chaos. Today’s central banks have created unprecedented global debts that do not bode well for future economic health. Many countries, including the US, are at the brink of financial disaster. These governments will attempt to solve the problem by printing more fiat currency and devaluing it even more.

The value of gold may fluctuate, according to the value of fiat currency, but it cannot be devalued at the whim of the Federal Reserve. Gold is a genuine commodity with real value. It is recognized worldwide as real money. Fiat currency is a crap shoot, depending on how the winds of government blow.

The only time the price of gold changes is when the amount of fiat currency needed to buy gold changes. The value of the currency changes; the value of gold remains the same.

We have never seen a national debt as we have it today. When the Federal Reserve frantically prints more paper dollars to pay off this debt, the dollar will lose considerable value. You will have diminished buying power, because the shampoo you bought for $5.00 last week will cost you $8.50 next week.

That is why gold is the only real money. It doesn’t fluctuate, diminish, or devalue. It is a constant. And it’s the one thing you can rely on during economic disaster.

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