New York City Zealots Are Trying To Ban Foie Gras

New York City, always in the running for the title of Earth’s culinary capital, appears set to relinquish its claim by banning foie gras.

The bill to ban foie gras was introduced in January by City Councilor Carlina Rivera (D), who represents parts of six Manhattan neighborhoods—the East Village, Gramercy Park, Kips Bay, Lower East Side, Murray Hill, and Rose Hill—and at least a handful of restaurants that serve foie gras.

No person, or any agent thereof, shall sell or offer for sale, or in any foodservice establishment provide or offer to provide by sale or any other manner, any force-fed product,” Rivera’s killjoy bill orders. Violators could face steep fines and up to a year in jail for violating the ban.

Rivera told the New York Post in February that she introduced the proposed ban because, the paper reports, “the foie gras production process is ‘egregious’ and has been wrongly ‘tolerated’ for ‘far too long’ in the Big Apple.” Rivera told the Post last month that foie gas is “a luxury product that we don’t need in New York City.”

Unfortunately, many of Rivera’s colleagues on the city council appear to agree with her. Crain’s last month reported at least twenty of New York City’s 51 city councilors have signed on to co-sponsor the ban. That number now stands at 28, which would give the ban the majority it needs to become law.

A city council committee debated the bill last month. There’s no word yet on when—or even if—the full council will vote on the ban. Meanwhile, the Post reported last month that neither New York City Mayor (and soon-to-be-former presidential candidate) Bill de Blasio nor City Council President Corey Johnson has taken a stand on the proposed ban.

The Robb Report noted last month that many New York City chefs oppose the bill.

“We’re both opposed to the ban,” said Arjuna Bull, who plans to open a restaurant in New York City’s East Village this summer with fellow chef Nahid Ahmed. “It’s quite an exquisite ingredient. We love to eat it, we love to work with it. It’s so versatile. All the chefs we know are opposed to [the ban].”

Last decade, Chicago lawmakers passed a foolhardy and short-lived foie gras ban. California’s statewide foie gras ban, which is the subject of a court challenge in which I’ve played a role, took effect in 2012.

The loss of foie gras in New York City, coupled with California’s ban, would make it illegal to sell foie gras in—depending on the source of your rankings—anywhere from four of the top 10 to six of the top 15 food destinations in America.

That’s likely by design. Killing off foie gras in America begins and ends with banning it in California and New York.

A foie gras ban would have been inconceivable to many in New York even a decade ago.

Eleven years ago, I attended the “Duckathlon,” a strange and wonderful competition for chefs that took place in and around Chelsea Market in lower Manhattan. The raucous event—held a short walk from Rivera’s Manhattan district—was sponsored by D’Artagnan, the country’s top purveyor of foie gras.

In a subsequent piece for Reason, I discussed how New York City’s unique place in America’s culinary hierarchy was increasingly in jeopardy. “There is probably no better place in America to hold an event celebrating and defending haute cuisine—and the chefs who cook it—than in New York City,” I wrote. But I also noted that the city that’s home to many of the best restaurants in the country had also become a burgeoning food nanny state.

Others I spoke with at the Duckathlon disagreed with that assessment—at least as it pertained to haute cuisine.

“I don’t think, in its upper reaches, New York City is a food nanny state at all,” the late food writer Josh Ozersky told me. Ozersky, like foie gras’ greatest American promoter and defender, fellow New Yorker Anthony Bourdain, is dead. Their energy and leadership are sorely missed today.

I spoke this week with staffers (and even a customer, a foie gras-loving comedy actor from Los Angeles) at one restaurant that serves foie gras and is located in Councilor Rivera’s district. They told me they were entirely unaware of both Rivera and her proposed ban.

That’s worrisome. Unless opposition to the ban crystallizes and chefs unite to push back against it, foie gras could soon be no more in New York City. But the impact of these bans extends far beyond foie gras—a point I made here last year.

Banning foie gras ducks would not only dramatically impact those producing it today, but logically could lead to banning all domestic poultry,” D’Artagnan founder and CEO Ariane Daguin wrote in an email to me this week. “We believe there is risk of a much larger industry precedent being set here, one that ultimately could affect our daily meals.

The Wall Street Journal‘s Anne Kadet, who doesn’t eat foie gras, toured the Hudson Valley Foie Gras farm in Upstate New York recently at the invitation of the farm’s owners. The tour, she writes, didn’t convince her to become a foie gras eater. Neither, though, did it make her a supporter of New York City’s proposed ban.

I’m personally opposed to the ban because it unfairly singles out a small segment of the meat/poultry industry that is an easy target,” Kadet told me this week in an email.

Kadet’s principled opposition to banning a food she doesn’t eat is music to my ears. Hers is also a mindset I hope New York City lawmakers can both understand and embrace.

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New York City Zealots Are Trying To Ban Foie Gras

New York City, always in the running for the title of Earth’s culinary capital, appears set to relinquish its claim by banning foie gras.

The bill to ban foie gras was introduced in January by City Councilor Carlina Rivera (D), who represents parts of six Manhattan neighborhoods—the East Village, Gramercy Park, Kips Bay, Lower East Side, Murray Hill, and Rose Hill—and at least a handful of restaurants that serve foie gras.

No person, or any agent thereof, shall sell or offer for sale, or in any foodservice establishment provide or offer to provide by sale or any other manner, any force-fed product,” Rivera’s killjoy bill orders. Violators could face steep fines and up to a year in jail for violating the ban.

Rivera told the New York Post in February that she introduced the proposed ban because, the paper reports, “the foie gras production process is ‘egregious’ and has been wrongly ‘tolerated’ for ‘far too long’ in the Big Apple.” Rivera told the Post last month that foie gas is “a luxury product that we don’t need in New York City.”

Unfortunately, many of Rivera’s colleagues on the city council appear to agree with her. Crain’s last month reported at least twenty of New York City’s 51 city councilors have signed on to co-sponsor the ban. That number now stands at 28, which would give the ban the majority it needs to become law.

A city council committee debated the bill last month. There’s no word yet on when—or even if—the full council will vote on the ban. Meanwhile, the Post reported last month that neither New York City Mayor (and soon-to-be-former presidential candidate) Bill de Blasio nor City Council President Corey Johnson has taken a stand on the proposed ban.

The Robb Report noted last month that many New York City chefs oppose the bill.

“We’re both opposed to the ban,” said Arjuna Bull, who plans to open a restaurant in New York City’s East Village this summer with fellow chef Nahid Ahmed. “It’s quite an exquisite ingredient. We love to eat it, we love to work with it. It’s so versatile. All the chefs we know are opposed to [the ban].”

Last decade, Chicago lawmakers passed a foolhardy and short-lived foie gras ban. California’s statewide foie gras ban, which is the subject of a court challenge in which I’ve played a role, took effect in 2012.

The loss of foie gras in New York City, coupled with California’s ban, would make it illegal to sell foie gras in—depending on the source of your rankings—anywhere from four of the top 10 to six of the top 15 food destinations in America.

That’s likely by design. Killing off foie gras in America begins and ends with banning it in California and New York.

A foie gras ban would have been inconceivable to many in New York even a decade ago.

Eleven years ago, I attended the “Duckathlon,” a strange and wonderful competition for chefs that took place in and around Chelsea Market in lower Manhattan. The raucous event—held a short walk from Rivera’s Manhattan district—was sponsored by D’Artagnan, the country’s top purveyor of foie gras.

In a subsequent piece for Reason, I discussed how New York City’s unique place in America’s culinary hierarchy was increasingly in jeopardy. “There is probably no better place in America to hold an event celebrating and defending haute cuisine—and the chefs who cook it—than in New York City,” I wrote. But I also noted that the city that’s home to many of the best restaurants in the country had also become a burgeoning food nanny state.

Others I spoke with at the Duckathlon disagreed with that assessment—at least as it pertained to haute cuisine.

“I don’t think, in its upper reaches, New York City is a food nanny state at all,” the late food writer Josh Ozersky told me. Ozersky, like foie gras’ greatest American promoter and defender, fellow New Yorker Anthony Bourdain, is dead. Their energy and leadership are sorely missed today.

I spoke this week with staffers (and even a customer, a foie gras-loving comedy actor from Los Angeles) at one restaurant that serves foie gras and is located in Councilor Rivera’s district. They told me they were entirely unaware of both Rivera and her proposed ban.

That’s worrisome. Unless opposition to the ban crystallizes and chefs unite to push back against it, foie gras could soon be no more in New York City. But the impact of these bans extends far beyond foie gras—a point I made here last year.

Banning foie gras ducks would not only dramatically impact those producing it today, but logically could lead to banning all domestic poultry,” D’Artagnan founder and CEO Ariane Daguin wrote in an email to me this week. “We believe there is risk of a much larger industry precedent being set here, one that ultimately could affect our daily meals.

The Wall Street Journal‘s Anne Kadet, who doesn’t eat foie gras, toured the Hudson Valley Foie Gras farm in Upstate New York recently at the invitation of the farm’s owners. The tour, she writes, didn’t convince her to become a foie gras eater. Neither, though, did it make her a supporter of New York City’s proposed ban.

I’m personally opposed to the ban because it unfairly singles out a small segment of the meat/poultry industry that is an easy target,” Kadet told me this week in an email.

Kadet’s principled opposition to banning a food she doesn’t eat is music to my ears. Hers is also a mindset I hope New York City lawmakers can both understand and embrace.

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Watch: Nazi Quest For The Holy Grail Exposed

As WWII came to an end, American Troops discovered Nazi files in a cave in Southern Germany… These documents revealed a project to discover the lost Aryan civilisation from which the Nazis believed they had descended.

This documentary uses rare footage as well as unseen photographs to help tell the story of three missions: a global search for the lost island of Atlantis, an expedition to find traces of the master race in the Himalayas, and an astonishing Nazi-sponsored quest for the mythical Holy Grail.

Source

via ZeroHedge News https://ift.tt/2ZvpRTU Tyler Durden

Game-Changer: What’s Behind US-Turkish Conflict Over The S-400 Deal

Submitted by SouthFront,

According to the Turkish National Defense Ministry, receipt of the first batch of Russian S-400 missile defense systems was  completed on July 25th. Besides making headlines all around the world and causing a harsh response from the US, the delivery demonstrated Turkey’s readiness to provide independent defense and foreign policies in its own interests despite all the difficulties that it may face on this path.

The Russian S-400 missile defense system, according to Stratfor, is the “best all-around.” It is approximately 30 years in the making, as development began in the late 1980s, and it was officially announced in 1993.

The first successful tests of the system were conducted in 1999 at Kapustin Yar in Astrakhan and the S-400 was scheduled for deployment by the Russian army in 2001. By 2003, the system was yet to be deployed to Russia. Following various setbacks it was finally cleared for service in 2007.

  • The S-400 Triumph package consists of a 30K6E battle management system, six 98ZH6E SAM systems, 48N6E3 and (or) 48N6E2 surface-to-air missiles (SAMs) ammunition load and 30TsE maintenance facilities. Use of the 48N6E SAM is possible.

  • An S-400 Transporter Erector Launcher has four missile containers. Each container can house one 48N6E or four 9M96 surface-to-air missiles.

  • The S-400 can be used with a semi-mobile package of towed trailer-mounted radars and missiles. Typically, it is towed by the Russian 6×6 truck BAZ-6402-015.

  • It takes 5-10 minutes to set system assets from traveling position and about 3 more minutes to set it to ready from the deployed position.

The S-400 has a target detection range of approximately 600 km, while being able to simultaneously track around 300 targets. The maximum speed of the target may be up to 4,800 m/s, approximately Mach 14.

It can simultaneously engage approximately 36 targets, or 72 guided missiles. It can engage an aerodynamic target at a range of between 3 and 250 kilometers, while a ballistic target can be engaged at 60 kilometers.

  • The Russian armed forces have several S-400, located at various positions, as well as plans to equip the Kirov-class battlecruiser Admiral Nakhimov with the 48N6DMK anti-aircraft missile derived from the land-based S-400. By 2020 Russia plans to have 28 S-400 regiments, each comprising of two or three battalions. In turn, each battalion consists of at least eight launchers with 32 missiles and a mobile command post.

  • Two S-400 systems are deployed in Syria for use in protection of Russian personnel.

  • Since 2016, Belarus has two S-400 missile systems, both provided by Russia free of charge, as per a 2011 agreement.

  • China received its first S-400 regiment in May 2018 and carried out successful tests in August 2018. There was an issue  where Russia had to send dozens of replacement missiles in early 2019 since a Russian cargo ship, reportedly carrying an export variant of the S-400’s most advanced interceptor, the 40N6E, was forced to return home as a result of damages sustained during a storm in the English Channel.  On July 25th, 2019, Russia began the delivery of China’s second S-400 missile defense system regiment;.

  • In October 2017, Saudi Arabia announced that it had finalized an agreement for the delivery of the S-400 missile defense system. Unsurprisingly, the US’ key ally in the Middle East wasn’t subject to sanctions and constant warnings over purchasing the S-400. In February 2019, the Kingdom and Russia held consultations on the S-400.

  • The S-400 missile defense system is expected to enter into service in India in October 2020. The United States threatened India with sanctions over India’s decision to buy the S-400 missile defense system from Russia. So far, it’s proving as effective as the threats towards Turkey.

  • As of January 2018, Qatar has allegedly been in advanced talks for the purchase of S-400, but no additional information has been provided since.

  • There are various rumors and confirmations by officials from Pakistan, Iraq, Iran and Egypt for interest towards the S-400.

The US strongly opposes the purchase of S-400 by its allies, but mainly by Turkey, since Turkey was a key partner in the F-35 Joint Strike Fighter program. According to US officials, there were constant fears that it could be used to steal the fighter jet’s secrets. Turkey has, for over a year now, maintained that the deal was done and there was nothing the US could do to dissuade it from purchasing despite threats of sanctions and other aggressive actions.

In a last ditch and quite absurd effort US Republican Senator Lindsey Graham, allegedly on behalf of US President Donald Trump, suggested that the Turkish side may choose to “simply not turn on” their $2 billion system to avoid difficulties in the Turkish-US relations. This absurd proposal was later repeated by US Secretary of State Mike Pompeo.

US media claim that negotiations on an offer by the US for Turkey to purchase a Raytheon Patriot missile system are still on-going despite the S-400 delivery. How that makes sense is unclear, but the new US Defense Secretary Mark Esper was, after all, a Raytheon lobbyist. Regardless, the cost of the proposed Patriot is $3.5 billion, compared to the $2 billion Russian system.

Another factor why the US military political leadership opposes deliveries of Russian state-of-the-art air defense missile systems to other states is that such deals contribute to the Russian development programmes in this field. Right now, the Russian military is developing and testing interceptors of the A-235 Nudol anti-ballistic missile system and anti-satellite weapon. The system is set to replace the current one defending Moscow and the surrounding region from nuclear attacks, the A-135 Amur.

According to reports, the Nudol will operate in three stages:

  • Long-range, based on the 51T6 interceptor and capable of destroying targets at distances up to 1500 km and altitudes up to 800 km

  • Medium-range, an update of the 58R6 interceptor, designed to hit targets at distances up to 1000 km, at altitudes up to 120 km

  • Short-range (the 53T6M or 45T6 interceptor (based on the 53T6)), with an operating range of 350 km and a flight ceiling of 40-50 km

The main contractor for the project is Almaz-Antey, who created the S-300, S-400 and is working on the S-500. According to military experts, the future of the missile defense systems A-235 and S-500 will form the basis for the comprehensive, integrated aerospace defense system of Russia, which will include a variety of modern ground-based detection tools.

The additional experience and funds obtained by Almaz-Antey and Russian military experts during implementation of S-300 and S-400 deals around the world and their usage in the conflict zones such Syria will allow Russia to make its aerospace defense systems even more sophisticated and effective.

via ZeroHedge News https://ift.tt/337HnzZ Tyler Durden

Rhine River At Dangerously Low Water Levels Could Cause Production Hell For German Firms

A series of heatwaves across Central Europe this summer has brought record-breaking temperatures to Germany that sparked dangerously low water levels on the Rhine river, one of the continents most important shipping routes, which could decrease manufacturing and disrupt supply chains that might tip Germany into recession.

Water levels on the Rhine last summer made some parts of it unnavigable. This disrupted supply chains in Germany’s industrial heartland that use the river for shipping.

Reuters recently reported that the shortage of rainfall this summer and scorching hot temperatures across Germany and France had made some parts of the Rhine impassable for fully loaded cargo ships.

“Approximately 80% of all goods that are transported via domestic water transport go along the River Rhine. Thus, it is Germany’s most important waterway,” Robert Lehmann, an economist at Germany’s influential Ifo Institute research center, told CNBC Tuesday.

“Coal, oil, and gas or chemical products are transported with a much higher intensity: 10% to 30%. These are the main goods at the beginning of important value-added chains, thus, low water levels at the River Rhine can immediately lead to restrictions in industrial production.”

Low water levels on the river could have severe economic consequences for Germany’s economy that is already dealing with an industrial recession.

New economic data on Thursday showed Germany’s manufacturing sector plunged in July with factories producing goods at the slowest rate in seven years and export orders crashed to the lowest in more than a decade.

Germany’s automobile industry has been the most significant factor in the industrial slowdown, low water levels on the Rhine have also been seen as a factor.

Holger Schmieding, the chief economist at Berenberg Bank, told CNBC Tuesday that shipping on the river was halted last fall, this caused the production of German chemicals and pharmaceuticals to plummet by 10% from September to November and damaged the overall economy

“While some of this reflected an emerging softness in demand, the impaired shipping was the major cause. Chemicals and pharmaceuticals account for 8.3% of German industrial output and 2% of overall German value-added. So, a 10% fall in output of that sector maintained for a full quarter would reduce GDP (gross domestic product) for that quarter by 0.2 percentage points.”

The Rhine flows 760 miles starting in Switzerland and goes through Germany into the Netherlands, draining into the North Sea. It’s the top shipping route for intercontinental transportation of agricultural and petrochemical products.

Germany’s WSV rivers authority said they’re powerless in preventing the river from drying out. “The Rhine is a natural river,” said Hans-Heinrich Witte, president of WSV. “There are limits to what we can do to keep it open as an industrial waterway.”

Carsten Brzeski, the chief economist at ING Germany, noted last week that the German economy is at “the most dangerous crossroads since 2009” amid a broad base industrial slowdown. The sweltering temperatures just made the situation worse.

Traders told Reuters on Friday morning that water levels on some parts of the Rhine are increasing but from ultra-low levels after wet weather was seen in Germany this week.

“The northern sections of the Rhine, especially around Cologne, are still hovering around the minimum level for full loads but overall we are not facing the sort of serious problems we had last year,” one trader said.

“But I think we will see the river moving in and out of shallow water in the coming weeks.”

Unusually low water levels on the Rhine, an industrial recession in Germany, and economic stagnation across Europe, it seems like the European Central Bank will have their hands full this fall in trying to revive the Germany economy.

Does anyone know if the ECB can print water yet?

via ZeroHedge News https://ift.tt/33j8qIO Tyler Durden

BoJo’s Britain: Casting Off The EU Millstone

Authored by Alasdair Macleod via GoldMoney.com,

In this article, we look at the implications of the new Johnson government: its strategy, the likely outcome of EU negotiations, and the golden opportunities to reform trade, tax and monetary policies to secure a better future based on free trade.

Introduction

It should have been no surprise that Boris Johnson is now Prime Minister. It should also be no surprise he will implement Brexit on 31 October, the last date agreed between Mrs May’s government and the EU. Johnson was elected by Conservative constituency members to do just that. His cabinet appointees are fully supportive, including ex-Remainers (that’s politics!) and he has appointed an aggressive rottweiler, Dominic Cummings, as his Brexit enforcer. Already, his influence over Brexit strategy can be detected. There are no compromises to be had, a point which slower minds in the commentariat find difficult to comprehend and accept.

It is likely there will be an agreement on the way forward after Brexit, which could involve a transition period, but nothing like that agreed with Mrs May. If, as seems unlikely, the EU digs its heels in, the UK will walk away. That is the message being given by the new administration.

The establishment media are still wrong-footed on Brexit. The BBC, and others, have been too idle to analyse properly, taking their information from biased pro-remain sources and politicians who are out of the loop. They are still doing it. Disinformation is substituted for truth.

The EU, disinformed by Remainers including a chorus of past ministers and prime ministers, has relied on the divisions within Parliament to put Britain into a political and economic stasis. Their repeated utterances (there will be no new negotiation, the withdrawal agreement stands etc.) reflect the continuation of the EU’s established position. That is likely to change, because the EU will find it is forced to accept the dangers to its own position.

There is a crucial difference between the new cabinet and its predecessor. In Johnson, as well as ministers such as Rees-Mogg, Raab, Javid and Gove there appears to be an understanding of and commitment to free markets, unlike anything we have seen since Margaret Thatcher. Obviously, the strength of that commitment is yet to be tested.

The new reality and the dismissal of the old socialising compromisers should swing Parliament behind the instructions given to it by the electorate in the Brexit referendum. An advertising campaign to prepare everyone for Brexit without a deal starts now. The strategy is not to go to Brussels (UK-US is being negotiated first) but only when Brussels comes to its senses will a dialog commence. Facing a lost cause, Remainers are likely to melt like midsummer hailstones, and the euro-nuts, like Dominic Grieve, will sink into obscurity.

The electoral consequences are appalling for the Labour Party. By changing from its conditional support for implementing the Brexit referendum to demanding a second one with the intention of overturning the first, they have almost guaranteed that in a general election they will face a wipe-out. This is important, because it means that they have no incentive to table a vote of no confidence in Johnson’s government. They have already gambled and lost.

Because of Labour’s bad call it looks like Boris’s government will get its way and is here to stay, not only through Brexit, but beyond. The EU will have to get used to it. The Europeans have lost control over the negotiations and seem unlikely to get more than a pittance of the £39bn settlement agreed with Mrs May. When Boris refers to our friends in Europe, he actually means our adversaries. When he refers to his preference for a deal against no deal, he means a deal only on his government’s terms. Already, trade negotiations are commencing with America, existing EU trade agreements with other significant nations will be simply novated, and the whole of the Commonwealth, including populous India are ready to sign up.

This is the new reality and Dominic Cummings’s task is to ensure all government departments are firmly on message. There is bound to be a little drift from this black and white, but the process of political destruction now moves from London to Brussels. Having made such a fuss of it, the Irish border is a non-issue. The UK has no need to put in a border. With lower UK tariffs, ownership of the problem is fully transferred to the EU and the Irish government.

Assuming the Treasury has already made provisions for it, Boris needs the £39bn promised by Mrs May to the EU to be reallocated to a mixture of the health service, education, law enforcement and tax cuts. Then there’s that infamous £350m per week, which was on the side of the Brexit bus. That was gross of the Thatcher rebate, so the actual figure is closer to £275m per week, and there was an amount within that spent in the UK under the EU’s sole direction. That left £181m in 2016, sent to Brussels for the privilege of EU membership, or £9.4bn per annum. How much of that can be diverted for funding government spending depends on the new government’s tariff policies. There is no doubt that from a purely economic point of view they should be removed in their entirety.

By not paying the planned £39bn divorce settlement and gaining the £9.4bn net annual payments to the EU, Johnson has some wriggle room when it comes to funding his spending plans and tax cuts. Without it, he will have to rely on inflationary financing, and hopefully there are enough wise heads in the cabinet to dissuade him from going down that road. Therefore, if only because of the money, the odds strongly favour a hardball approach on Brexit negotiations instead of compromise.

The EU’s problems are mounting

There is likely to be an important consequence, and that is a Johnson Brexit could trigger a mounting financial and ultimately political crisis in the European Union.

A study last year by Germany’s Halle Institute estimated a no-deal Brexit would cost 12,000 jobs in the UK, and 422,000 jobs in the other 27 EU members, of which 100,000 are in Germany and 50,000 in France. Yesterday, Ireland’s central bank forecast a loss of up to 100,000 jobs in the medium term in Ireland alone, on a no-deal. Clearly, the EU’s negotiators risk losing the wholehearted support of its two largest post-Brexit paymasters and others. But for Brussels, giving in on Brexit encourages rebellion from disaffected populations in other member states. Rather like the Soviets ruling Eastern Europe in the late eighties, the Brussels establishment finds itself struggling to keep its non-democratic political model intact.

It is increasingly likely Brussels will find events are spinning out of its control. For the UK, this introduces collateral damage, necessitating even more urgent separation from the EU. In a paper published at end-June, Bob Lyddon points out that a Eurozone financial crisis (which is becoming increasingly likely, as argued below) could cause the UK’s contingent liability as an EU member to be as much as €441bn. “This derives from the near-criminal irresponsibility by the UK’s negotiators”.

Whatever the numbers, there can be no doubt that this is an extremely serious issue. Furthermore, in the event of a financial and systemic crisis in the Eurozone, the UK will face its own crisis, if only because of cross-liabilities through the two banking systems. And the cyclical economic downturn that always follows the failure of a period of credit expansion is coming up on the inside rail very rapidly.

The EU economy is left badly unbalanced, with Germany dominating production and exports. Other populous member states, notably in the Club Med and France, are in a financial mess. They have relied on Germany’s production to provide for their unproductive profligacy. Her production output is now contracting.

Germany has been hit by three adverse developments at the same time. There is President Trump’s tariff war against China, which has undermined Germany’s largest growing markets at the eastern end of the Silk Road, and the threat he will deploy similar tactics against Germany. There is EU environmental legislation, which is making Germany’s motor production obsolete and forcing manufacturers to put a time-limit on existing production while investing enormous sums in electric technology. The damage this has done extends down the whole production chain, undermining the Mittelstand. 

Then there is the crisis in Germany’s major banks, most publicly seen in Deutsche Bank because of longtail liabilities from its investment banking division. But all German banks, as well as those throughout the EU, face a lethal combination of margin compression from negative interest rates and a legacy of an expensive branch network when customers are migrating to online banking. The slump in German production now provides an additional threat to their loan books.

In the background, there is the turn in the global credit cycle from its expansionary phase into a periodic contraction, usually resulting in a credit crisis. To understand the transition from credit expansion to a tendency for it to contract is to recognise that the expansion of credit as a means of stimulating an economy depends on tricking economic actors into believing prospects are improving. When the evidence mounts that they are not, monetary stimulation fails, and credit begins to contract. Despite the ECB maintaining negative interest rates, despite the ability of highly-rated companies to raise finance at zero or even negative rates, and despite the ECB’s offer to pay companies to borrow (which is what deeper negative rates amount to) economic actors are now aware that it is all deception.

This is why Germany now has all the appearances of being in the early stages of a deepening economic slump, and there is nothing monetary policy can do about it. Brexit will simply add to these problems, not just for manufacturers, but for their bankers as well, as the Halle Institute report implies.

It is increasingly difficult to see how with escalating budget deficits in member governments Brussels can afford to continue with its head-in-the-sand approach to trade negotiations with Britain. The eurocrats naturally retreat into more protectionism when they see the system threatened. But asking Germany, France, the Netherlands, Austria, Finland, Sweden and Denmark for more money when their tax revenues are slumping is unlikely to cut much ice.

The new Johnson team will know some of this. There may be a temptation to make a portion of the £39bn, promised by Mrs May, available to Brussels to alleviate their pain in return for a quick deal. This goes against the new hard attitude of the Johnson government, exemplified by the presence of Dominic Cummings. But we shall see how this one pans out.

The UK economy Post-Brexit

Meanwhile, as economist Patrick Minford recently pointed out, a US-UK trade deal could lower prices of goods in the UK by as much as 20%, being the effect of EU tariff protection against global competition, raising prices above the world price level by that amount. Minford estimates a UK-US trade deal would lead to an overall gain to UK GDP of between four and eight per cent, a markedly different outcome from the project fear propaganda of the old establishment. And in the event of No Deal with the EU, the UK Treasury will receive up to £13bn in tariffs from EU importers, assuming no reduction in EU imports. Obviously, there will be substitution of EU goods for goods from the US and elsewhere, once trade agreements are in place, so this will be a maximum revenue figure.

The point is No Deal is not the disaster promised by the May establishment and its business lobbyists. It is a disaster for the remaining EU. Exiting the EU offers the Johnson government a good start, a clean sheet. Any compromise with the EU on trade and money detracts from this benefit.

It is an opportunity for Britain to reset the approach to political economy, which is our next topic. For attention-deficit politicians, there are two important factors to understand that are central to formulating post-Brexit policy: the reason why trade imbalances arise, and therefore how trade and economic policies should be constructed, and the destructive effects of inflationary financing.

How trade imbalances arise

It is vital to understand the source of trade imbalances, so that the mistake made by President Trump, which is driving the world into a Smoot-Hawley-style 1930s slump, is not repeated by Britain. The common error is to believe that the exchange rate sets trade surpluses and deficits. It therefore follows, the argument goes, that artificially raising the price of imported goods by imposing tariffs achieves the same effect.

The simplest explanation to understand why this is wrong is to start with a theoretical sound money example before progressing to the current fiat money environment. When gold was money and if unbacked currency and credit were not available, imports could only be paid for in gold or fully-backed gold substitutes. The same is true of exports. An individual borrowing to buy an imported good has to source gold or a fully-backed gold substitute, so the provider of money has to defer consumption, which includes that of imported goods. And unless the people in a nation collectively adjust the amount of gold in circulation, imports will always balance exports.

Compare this with nations trading with each other using unbacked state-issued currencies. These are issued at will by central banks as new money and by commercial banks in the form of bank credit. Therefore, anyone can buy an imported good without having to have the money, so long as a bank advances the credit.

Money and Credit expanded out of thin air replaces the need for imports to be paid for by exports. Now that all countries work their currencies the same way, the trade balance becomes a relative matter. Other things being equal, the country which expands its money and credit the greatest ends up with the largest trade deficit, and the one that expands the least the largest trade surplus.

But national statistics are designed to reflect money spent on consumption (GDP) separating out money spent on capital items. A nation whose population has a savings habit will spend less on imported consumer goods than a nation with a lower tendency to save. This is why Japan’s monetary expansion has not fuelled a trade deficit in consumer goods. In other nations, such as the US and UK, where personal savings are now minimal, credit expansion leads to chronic trade deficits.

The expansion of fiat money to bridge the gap between tax revenue and government spending similarly leads to a rise in imports, because the expansion of money and credit, when they are not saved by the consumers who ultimately benefit, always ends up fuelling consumer imports, often as a second or third order event. This gives rise to the twin deficit phenomenon commonly observed in both the UK and US, where consumer savings are virtually non-existent.

The destruction arising from inflationary financing

The Keynesian policy of stimulating an economy through a temporary budget deficit relied on deceiving economic actors into thinking there was more demand in the economy than existed. Like all confidence tricks, it eventually fails. Governments end up with perpetual budget deficits, which trend larger with every unresolved credit cycle.

Expanding money and credit as a means of funding government spending through the creation of debt has now become central to state finances everywhere, including the UK. The advantage for governments is very few people understand that this form of finance transfers wealth from the producers in an economy to the state. But the government is eating its own seed-corn by impoverishing its tax base, which if continued leads inexorably towards the destruction of its currency.

Any politician who claims to be a free-marketeer is not one unless sound money, devoid of inflationary financing, is embraced. Taking into account the importance of sound money and the reasons trade imbalances arise, a Johnson government that understands these issues will be equipped to fashion economic and monetary policy for the future. It is not enough to merely pay lip service to the necessary objectives, but to grasp the economic theory behind them, so that socialist and neo-Keynesian claptrap can be fully exposed in reasoned debate.

These are two objectives to strive towards, and will necessarily take time, because changes in government policy must steer the electorate along with it. They should be pinned up as mission statements on the notice boards in Downing Street. That being accepted, the following supporting policies must be implemented to re-orientate the ship of state towards economic success:

  • Tax policy. Tax cuts should be broadly financed by reductions in government spending, not through increasing the budget deficit in the hope that the economic stimulus will generate higher taxes. Welfare must only support people in genuine need, not those with just a sense of entitlement.

  • Government spending. Means must be found to reduce the proportion of government spending in the economy as a whole, to reduce the burden on the productive private sector. A financial and economic crisis requires departmental spending to be slashed, not just future planned increases cut, as was the case under Gordon Brown in 2009.

  • Encouragement to save. Taxes should be removed from savings and capital gains. Inheritance tax must be abolished. This is to allow people to accumulate personal wealth and to reduce the need for the state to provide.

  • Trade. Trade agreements with other nations should be viewed as a first step towards wholly free trade. By exploiting the comparative advantage of allowing people to buy what they want from providers of goods and services irrespective of location, capital resources will naturally be redeployed towards their more efficient use. This is why understanding that trade imbalances do not arise from currency differentials is so important.

  • Monetary policy. Steps must be taken to restrict the Bank of England from manipulating the economy through monetary policy. Targeting inflation and employment must be abandoned, and markets allowed to set interest rates. Credit expansion should be curtailed by ensuring that UK banks and branches of foreign banks operate to stricter capital rules. Goal-seeking stress-testing must end. In the longer-term, banks should lose the protection of limited liability, which has allowed bankers to make rash lending decisions without bearing the ultimate cost.

  • Gold. The Treasury must replenish the nation’s gold reserves. The risk of a global currency crisis is increasing by the day, and foreign currency reserves will need to be reallocated at least in line with those of other major nations.

Conclusion

Brexit is an opportunity to reset economic, monetary and trade policies. The implications of getting rid of the EU millstone go far beyond the leaving date of 31 October. Assuming a Johnson government has a good grasp of why free trade benefits the economy and why trade imbalances exist, combined with the courage to steer Britain towards the long-term prosperity offered by free markets, it will derive its future power from a strong economy instead of merely claiming it based on the past.

via ZeroHedge News https://ift.tt/2yw8gQ7 Tyler Durden

Impending Defeat for the Four Horsemen of the Apocalypse

Most of you think that the world, in general, is getting worse. You are wrong. Citing uncontroversial data on major global trends, I will prove to you that this dark view of humanity’s prospects is, in large part, badly mistaken.

First, though: How do I know most of you believe that things are bad and getting worse? Because that’s what you tell pollsters. A 2016 survey by the public opinion firm YouGov asked folks in 17 countries, “All things considered, do you think the world is getting better or worse, or neither getting better or worse?” Fifty-eight percent answered worse, and 30 percent chose neither. Only 11 percent thought things are getting better. In the United States, 65 percent thought that the world is getting worse and 23 percent said neither. Only 6 percent responded that the world is getting better.

A 2015 study in the journal Futures polled residents of the U.S., the U.K., Canada, and Australia; it reported that a majority (54 percent) rated the risk of our way of life ending within the next 100 years at 50 percent or greater, and a quarter (24 percent) rated the risk of humans being wiped out in the next 100 years at 50 percent or greater. Younger respondents were more pessimistic than their elders.

So why are so many smart people like you wrong about the improving state of the world? For starters, almost all of us have a couple of psychological glitches that cause us to focus relentlessly on negative news.

Way back in 1965, Johan Galtung and Mari Holmboe Ruge of the Peace Research Institute Oslo observed “a basic asymmetry in life between the positive, which is difficult and takes time, and the negative, which is much easier and takes less time.” They illustrated this by comparing “the amount of time needed to bring up and socialize an adult person and the amount of time needed to kill him in an accident; the amount of time needed to build a house and to destroy it in a fire, to make an airplane and to crash it, and so on.” News is bad news; steady, sustained progress is not news.

Smart people seek to be well-informed and so tend to be more voracious consumers of news. Since journalism focuses on dramatic events that go wrong, the nature of news thus tends to mislead readers and viewers into thinking that the world is in worse shape than it really is. This mental shortcut is called the availability bias, a name bestowed on it in 1973 by the behavioral scientists Amos Tversky and Daniel Kahneman. “People tend to assess the relative importance of issues by the ease with which they are retrieved from memory—and this is largely determined by the extent of coverage in the media,” explains Kahneman in his book Thinking, Fast and Slow.

Another reason for the ubiquity of mistaken gloom derives from evolutionary psychology. A Stone Age person hears a rustle in the grass. Is it the wind or a lion? If he assumes it’s the wind and the rustling turns out to be a lion, then that person does not live to become one of our ancestors. We are the descendants of the worried folks who tended to assume that all rustles in the grass were dangerous predators. Due to this instinctive negativity bias, most of us attend far more to bad rather than to good news.

Of course, not everything is perfect. Big problems remain to be addressed and solved. As the Harvard psychologist Steven Pinker says, “it’s essential to realize that progress does not mean that everything gets better for everyone, everywhere, all the time. That would be a miracle, that wouldn’t be progress.”

For example, man-made climate change arising largely from increasing atmospheric concentrations of carbon dioxide released from the burning of fossil fuels could become a significant problem for humanity during this century. The spread of plastic marine debris is a big and growing concern. Many wildlife populations are declining, and tropical forest area continues to shrink. And far too many people are still malnourished and dying in conflicts around the globe.

But many of those problems are already in the process of being ameliorated. For example, the falling prices of renewable energy sources offer ever-stronger incentives to switch away from fossil fuels. And hyperefficient agriculture is globally reducing the percentage of people who are hungry—while simultaneously freeing up land, so that forests are now expanding in much of the world.

The fact that we denizens of the early 21st century are much richer than any previous generation accounts for much of the good news. Thanks to technological progress and expanding global markets, the size of the world’s economy since 1820 has grown more than 100-fold while world population grew somewhat less than eightfold. In concrete terms, world gross product grew from $1.2 trillion (in 2011 dollars) to more than $116 trillion now. Global per capita GDP has risen from $1,200 per year in 1820 to more than $15,000 per person currently.

The astonishing result of this increase in wealth is that the global rate of absolute poverty, defined as living on less than $1.90 per person per day, fell from 84 percent in 1820 to 55 percent in 1950. According to the World Bank, 42 percent of the globe’s population was still living in absolute poverty as late as 1981. The latest World Bank assessment reckons that the share of the world’s inhabitants living in extreme poverty fell to 8.6 percent in 2018. In 1990 about 1.9 billion of the world’s people lived in extreme poverty; by 2018, that number had dropped to 660 million.

In Christian tradition, the four horsemen of Famine, Pestilence, War, and Death usher in the apocalypse. Compared to 100 years ago, deaths from infectious diseases are way down; wars are rarer and kill fewer people; and malnutrition has steeply declined. Death itself is in retreat, and the apocalypse has never looked further away.

Death

Average life expectancy at birth hovered around 30 years for most of human history. This was mostly due to the fact that about a third of all children died before they reached their fifth birthday. Demographers ​estimate that in 16th century England, 60 out of 100 children died before age 16. ​Some fortunate people did have long lives, but only 4 percent of the world’s population lived to be older than 65 before the 20th century.

In 1820, global average life expectancy was still about 30 years. Then, remarkably, life expectancy in Europe and North America began rising at the sustained rate of about 3 months annually. That was largely a consequence of better nutrition and the rise of public health measures such as filtered water and sewers.

During the past 200 years, global life expectancy more than doubled, now reaching more than 72, according to the World Bank. Worldwide, the proportion of folks who are 65 years and older has also more than doubled, to 8.5 percent. By 2020, for the first time in human history, there will be more people over the age of 64 than under the age of 5.

Even in the rapidly industrializing United States, average life expectancy was still only 47 years in 1900, and only 4 percent of Americans were 65 years and older. U.S. life expectancy is now 78.7 years. And today 15.6 percent of Americans are 65 or older, while only 6.1 percent are under age 5.

The historic rate of rising life expectancy implies a global average of 92 years by 2100. But the United Nations’ medium fertility scenario rather conservatively projects that average global life expectancy at the end of the century will instead be 83.

A falling infant mortality rate accounts for the major share of increasing longevity. By 1900, infant mortality rates had fallen to around 140 per 1,000 live births in modernizing countries such as the United Kingdom and the United States. Infant mortality rates in the two countries continued to fall to around 56 per 1,000 live births in 1935 and down to about 30 per 1,000 live births by 1950. In 2017, the U.K. and U.S. infant mortality rates were 3.8 and 5.9 per 1,000 live births, respectively. Since 1900, in other words, infant mortality in those two countries has fallen by more than 95 percent.

Infant mortality rates have also been falling steeply ​in the rest of the world​. The World Health Organization estimates that the global infant mortality rate was just under 160 per 1,000 live births in 1950. In 2017, it was down to 29.4 per 1,000 live births, about the level of the U.K. and the U.S. in 1950. Vastly fewer babies are dying today because rising incomes have enabled improved sanitation and nutrition and more resources for educating mothers.

According to the World Bank, the global crude death rate stood at 17.7 per 1,000 in 1960. That is, about 18 people out of every 1,000 persons in a community would die each year. That number has fallen to 7.6 per 1,000 in 2016. The global death rate has fallen by more than half in the last 60 years.

Famine

Food production since 1961 has essentially quadrupled while global population has increased two and half times, according to the World Bank. As a result, the Food and Agriculture Organization reports, the global average food supply per person per day rose from 2,225 calories in 1961 to 2,882 calories in 2013. As a general rule, men and women need around 2,500 or 2,000 calories per day, respectively, to maintain their weight. Naturally, these values vary depending on age, metabolism, and levels of physical activity, among other things.

Food availability, of course, is not equally distributed across the globe. Nevertheless, rising agricultural production has caused undernourishment in poor developing countries to fall dramatically. The Food and Agriculture Organization regularly estimates the “proportion of the population whose habitual food consumption is insufficient to provide the dietary energy levels that are required to maintain a normal active and healthy life.” It reports that this undernourishment fell from 37 percent of the population in 1969–71 to just under 15 percent by 2002, reaching a low of 10.6 percent in 2015 before ticking up to 10.9 percent in 2017.

Famines caused by drought, floods, pests, and conflict have collapsed whole civilizations and killed hundreds of millions of people over the course of human history. In the 20th century, the biggest famines were caused by communist regimes in the Soviet Union and mainland China. Soviet dictator Josef Stalin’s famines killed up to 10 million people; China’s despot, Mao Zedong, starved 45 million between 1958 and 1962.

In the 21st century, war and political violence are still major causes of hunger around the world. Outbreaks of conflict in Syria, Yemen, Somalia, South Sudan, Afghanistan, and Nigeria are largely responsible for the recent uptick in the rate of global undernourishment. In other words, famines have disappeared outside of war zones. Much progress has been made, and the specter of famine no longer haunts the vast majority of humankind.

Pestilence

Prior to its eradication in 1979, smallpox was one of humanity’s oldest and most devastating scourges. The disease, which can be traced all the way back to pharaonic Egypt, was highly contagious. A 1775 French medical textbook estimated that 95 percent of the population contracted smallpox at some point during their lives.

In the 20th century alone, the disease is thought to have killed between 300 and 500 million people. The smallpox mortality rate among adults was between 20 and 60 percent. Among infants, it was 80 percent. That helps explain why life expectancy remained between 25 and 30 years for so long.

Edward Jenner, an English country doctor, noted that milkmaids never got smallpox. He hypothesized that the milkmaids’ exposure to cowpox protected them from the disease. In 1796, Jenner inserted cowpox pus from the hand of a milkmaid into the arm of a young boy. Jenner later exposed the boy to smallpox, but the boy remained healthy. Vacca is the Latin word for a cow—hence the English word vaccination.

The World Health Organization estimates that vaccines prevented at least 10 million deaths between 2010 and 2015 alone. Many millions more lives were protected from illness. As of 2018, global vaccination coverage remains at 85 percent, with no significant changes during the past few years. That said, an additional 1.5 million deaths could be avoided if global immunization coverage improves.

Improved sanitation and medicine account for many of the other wins against pestilence. Before the 19th century, people didn’t know about the germ theory of disease. Consequently, most people did not pay much attention to the water they drank. The results were often catastrophic, since contaminated water spreads infectious diseases, including diarrhea, dysentery, typhoid, polio, and cholera.

From 1990 to 2015, access to improved water sources rose from 76 percent of the world’s population to 91 percent. Put differently, 285,000 people gained access to clean water each day over that time period.

As a result of growing access to clean water and improved sanitation, along with the wider deployment of rehydration therapy and effective rotavirus vaccines, the global rate of deaths from diarrheal diseases stemming from rotavirus, cholera, and shigella has fallen from 62 per 100,000 in 1985 to 22 per 100,000 in 2017, according to The Lancet‘s Global Burden of Disease study that year. And thanks to constantly improving medicines and pesticides, malaria incidence rates decreased by 37 percent globally and malaria mortality rates decreased by 60 percent globally between 2000 and 2015.

War

Your chances of being killed by your fellow human beings have also been dropping significantly. Lethal interpersonal violence was once pervasive. Extensive records show that the annual homicide rate in 15th century England hovered around 24 per 100,000 residents, while Dutch homicide rates are estimated as being between 30 and 60 per 100,000 residents. Fourteenth century Florence experienced the highest known annual homicide rate: 150 per 100,000. The estimated homicide rates in 16th century Rome range from 30 to 80 per 100,000. Today, the intentional homicide rate in all of those countries is around 1 per 100,000.

The Cambridge criminologist Manuel Eisner notes that “almost half of all homicides worldwide occurred in just 23 countries that account for 10 per cent of the global population.” Unfortunately, medieval levels of violence still afflict such countries as El Salvador, Honduras, and South Africa, whose respective homicide rates are 83, 57, and 34 per 100,000 persons.

Nonetheless, the global homicide rate is falling: According to the Institute for Health Metrics and Evaluation, it has dropped from 6.4 per 100,000 in 1990 to 5.3 per 100,000 in 2016. That’s a reduction of 17 percent during a remarkably short period of 26 years, or 0.7 percent per year.

Another way to measure the general decline in violence is the global battle death rate per 100,000 people. Researchers at the Peace Research Institute Oslo have documented a steep post–World War II decline in the rate at which soldiers and civilians are killed in combat. The rate of battle deaths per 100,000 people reached a peak of 23 in 1953. By 2016, that had fallen by about 95 percent.

Apocalypse Later?

Some smart people acknowledge that considerable social, economic, and environmental progress has been made but worry that the progress will not necessarily continue.

“Human beings still have the capacity to mess it all up. And it may be that our capacity to mess it up is growing,” claims Cambridge political scientist David Runciman in The Guardian. He adds, “For people to feel deeply uneasy about the world we inhabit now, despite all these indicators pointing up, seems to me reasonable, given the relative instability of the evidence of this progress, and the [unpredictability] that overhangs it. Everything really is pretty fragile.”

Runciman is not alone. The worry that civilization is just about to go over the edge of a precipice has a long history. After all, many earlier civilizations and regimes have collapsed, including the Babylonian, Roman, Tang, Mayan, and, more recently, Ottoman and Soviet empires.

Yet there are good reasons for optimism. In their 2012 book Why Nations Fail, economists James Robinson of the University of Chicago and Daron Acemoglu of the Massachusetts Institute of Technology persuasively outline an explanation for the exponential improvement in human well-being that started about two centuries ago.

Before then, they argue, most societies were organized around “extractive” institutions—political and economic systems that funnel resources from the masses to the elites. In the 18th century, some countries—including Britain and many of its colonies—shifted from more extractive to more inclusive institutions.

“Inclusive economic institutions that enforce property rights, create a level playing field, and encourage investments in new technologies and skills are more conducive to economic growth than extractive economic institutions that are structured to extract resources from the many by the few,” the authors write. “Inclusive economic institutions are in turn supported by, and support, inclusive political institutions.”

Inclusive institutions are similar to one another in their respect for individual liberty. They include democratic politics, strong private property rights, the rule of law, enforcement of contracts, freedom of movement, and a free press. Inclusive institutions are the bases of the technological and entrepreneurial innovations that produced a historically unprecedented rise in living standards in those countries that embraced them, including the United States, Western Europe, Japan, and Australia.

While uneven and occasionally reversed, the spread of inclusive institutions to more and more countries is responsible for what the University of Illinois at Chicago economist Deirdre Nansen McCloskey calls the “Great Enrichment,” which has boosted average incomes 10- to 30-fold in those countries where they have taken hold.

The most striking examples of social disintegration—Roman, Tang, Soviet—occurred in extractive regimes. Despite crises such as the Great Depression, there are no examples so far of countries with long-established inclusive political and economic institutions suffering similar collapses.

In addition, major confrontations between relatively inclusive regimes and extractive regimes, such as World War II and the Cold War, have been won by the former. That suggests that liberal free market democracies harbor reserves of resilience that enable them to forestall or rise above shocks that destroy countries with brittle extractive systems.

If inclusive liberal institutions can continue to be strengthened and if they further spread across the globe, the auspicious trends documented here will extend their advance, and those that are currently negative will turn positive. By acting through inclusive institutions to increase knowledge and pursue technological progress, past generations met their needs and hugely increased our generation’s ability to meet our needs. We should do no less for future generations. That is what sustainable development looks like.

This article is based on data and analysis drawn from the author’s forthcoming book Ten Global Trends Every Smart Person Should Know (Cato), co-authored with HumanProgress.org editor and Cato Institute Senior Policy Analyst Marian L. Tupy.

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Impending Defeat for the Four Horsemen of the Apocalypse

Most of you think that the world, in general, is getting worse. You are wrong. Citing uncontroversial data on major global trends, I will prove to you that this dark view of humanity’s prospects is, in large part, badly mistaken.

First, though: How do I know most of you believe that things are bad and getting worse? Because that’s what you tell pollsters. A 2016 survey by the public opinion firm YouGov asked folks in 17 countries, “All things considered, do you think the world is getting better or worse, or neither getting better or worse?” Fifty-eight percent answered worse, and 30 percent chose neither. Only 11 percent thought things are getting better. In the United States, 65 percent thought that the world is getting worse and 23 percent said neither. Only 6 percent responded that the world is getting better.

A 2015 study in the journal Futures polled residents of the U.S., the U.K., Canada, and Australia; it reported that a majority (54 percent) rated the risk of our way of life ending within the next 100 years at 50 percent or greater, and a quarter (24 percent) rated the risk of humans being wiped out in the next 100 years at 50 percent or greater. Younger respondents were more pessimistic than their elders.

So why are so many smart people like you wrong about the improving state of the world? For starters, almost all of us have a couple of psychological glitches that cause us to focus relentlessly on negative news.

Way back in 1965, Johan Galtung and Mari Holmboe Ruge of the Peace Research Institute Oslo observed “a basic asymmetry in life between the positive, which is difficult and takes time, and the negative, which is much easier and takes less time.” They illustrated this by comparing “the amount of time needed to bring up and socialize an adult person and the amount of time needed to kill him in an accident; the amount of time needed to build a house and to destroy it in a fire, to make an airplane and to crash it, and so on.” News is bad news; steady, sustained progress is not news.

Smart people seek to be well-informed and so tend to be more voracious consumers of news. Since journalism focuses on dramatic events that go wrong, the nature of news thus tends to mislead readers and viewers into thinking that the world is in worse shape than it really is. This mental shortcut is called the availability bias, a name bestowed on it in 1973 by the behavioral scientists Amos Tversky and Daniel Kahneman. “People tend to assess the relative importance of issues by the ease with which they are retrieved from memory—and this is largely determined by the extent of coverage in the media,” explains Kahneman in his book Thinking, Fast and Slow.

Another reason for the ubiquity of mistaken gloom derives from evolutionary psychology. A Stone Age person hears a rustle in the grass. Is it the wind or a lion? If he assumes it’s the wind and the rustling turns out to be a lion, then that person does not live to become one of our ancestors. We are the descendants of the worried folks who tended to assume that all rustles in the grass were dangerous predators. Due to this instinctive negativity bias, most of us attend far more to bad rather than to good news.

Of course, not everything is perfect. Big problems remain to be addressed and solved. As the Harvard psychologist Steven Pinker says, “it’s essential to realize that progress does not mean that everything gets better for everyone, everywhere, all the time. That would be a miracle, that wouldn’t be progress.”

For example, man-made climate change arising largely from increasing atmospheric concentrations of carbon dioxide released from the burning of fossil fuels could become a significant problem for humanity during this century. The spread of plastic marine debris is a big and growing concern. Many wildlife populations are declining, and tropical forest area continues to shrink. And far too many people are still malnourished and dying in conflicts around the globe.

But many of those problems are already in the process of being ameliorated. For example, the falling prices of renewable energy sources offer ever-stronger incentives to switch away from fossil fuels. And hyperefficient agriculture is globally reducing the percentage of people who are hungry—while simultaneously freeing up land, so that forests are now expanding in much of the world.

The fact that we denizens of the early 21st century are much richer than any previous generation accounts for much of the good news. Thanks to technological progress and expanding global markets, the size of the world’s economy since 1820 has grown more than 100-fold while world population grew somewhat less than eightfold. In concrete terms, world gross product grew from $1.2 trillion (in 2011 dollars) to more than $116 trillion now. Global per capita GDP has risen from $1,200 per year in 1820 to more than $15,000 per person currently.

The astonishing result of this increase in wealth is that the global rate of absolute poverty, defined as living on less than $1.90 per person per day, fell from 84 percent in 1820 to 55 percent in 1950. According to the World Bank, 42 percent of the globe’s population was still living in absolute poverty as late as 1981. The latest World Bank assessment reckons that the share of the world’s inhabitants living in extreme poverty fell to 8.6 percent in 2018. In 1990 about 1.9 billion of the world’s people lived in extreme poverty; by 2018, that number had dropped to 660 million.

In Christian tradition, the four horsemen of Famine, Pestilence, War, and Death usher in the apocalypse. Compared to 100 years ago, deaths from infectious diseases are way down; wars are rarer and kill fewer people; and malnutrition has steeply declined. Death itself is in retreat, and the apocalypse has never looked further away.

Death

Average life expectancy at birth hovered around 30 years for most of human history. This was mostly due to the fact that about a third of all children died before they reached their fifth birthday. Demographers ​estimate that in 16th century England, 60 out of 100 children died before age 16. ​Some fortunate people did have long lives, but only 4 percent of the world’s population lived to be older than 65 before the 20th century.

In 1820, global average life expectancy was still about 30 years. Then, remarkably, life expectancy in Europe and North America began rising at the sustained rate of about 3 months annually. That was largely a consequence of better nutrition and the rise of public health measures such as filtered water and sewers.

During the past 200 years, global life expectancy more than doubled, now reaching more than 72, according to the World Bank. Worldwide, the proportion of folks who are 65 years and older has also more than doubled, to 8.5 percent. By 2020, for the first time in human history, there will be more people over the age of 64 than under the age of 5.

Even in the rapidly industrializing United States, average life expectancy was still only 47 years in 1900, and only 4 percent of Americans were 65 years and older. U.S. life expectancy is now 78.7 years. And today 15.6 percent of Americans are 65 or older, while only 6.1 percent are under age 5.

The historic rate of rising life expectancy implies a global average of 92 years by 2100. But the United Nations’ medium fertility scenario rather conservatively projects that average global life expectancy at the end of the century will instead be 83.

A falling infant mortality rate accounts for the major share of increasing longevity. By 1900, infant mortality rates had fallen to around 140 per 1,000 live births in modernizing countries such as the United Kingdom and the United States. Infant mortality rates in the two countries continued to fall to around 56 per 1,000 live births in 1935 and down to about 30 per 1,000 live births by 1950. In 2017, the U.K. and U.S. infant mortality rates were 3.8 and 5.9 per 1,000 live births, respectively. Since 1900, in other words, infant mortality in those two countries has fallen by more than 95 percent.

Infant mortality rates have also been falling steeply ​in the rest of the world​. The World Health Organization estimates that the global infant mortality rate was just under 160 per 1,000 live births in 1950. In 2017, it was down to 29.4 per 1,000 live births, about the level of the U.K. and the U.S. in 1950. Vastly fewer babies are dying today because rising incomes have enabled improved sanitation and nutrition and more resources for educating mothers.

According to the World Bank, the global crude death rate stood at 17.7 per 1,000 in 1960. That is, about 18 people out of every 1,000 persons in a community would die each year. That number has fallen to 7.6 per 1,000 in 2016. The global death rate has fallen by more than half in the last 60 years.

Famine

Food production since 1961 has essentially quadrupled while global population has increased two and half times, according to the World Bank. As a result, the Food and Agriculture Organization reports, the global average food supply per person per day rose from 2,225 calories in 1961 to 2,882 calories in 2013. As a general rule, men and women need around 2,500 or 2,000 calories per day, respectively, to maintain their weight. Naturally, these values vary depending on age, metabolism, and levels of physical activity, among other things.

Food availability, of course, is not equally distributed across the globe. Nevertheless, rising agricultural production has caused undernourishment in poor developing countries to fall dramatically. The Food and Agriculture Organization regularly estimates the “proportion of the population whose habitual food consumption is insufficient to provide the dietary energy levels that are required to maintain a normal active and healthy life.” It reports that this undernourishment fell from 37 percent of the population in 1969–71 to just under 15 percent by 2002, reaching a low of 10.6 percent in 2015 before ticking up to 10.9 percent in 2017.

Famines caused by drought, floods, pests, and conflict have collapsed whole civilizations and killed hundreds of millions of people over the course of human history. In the 20th century, the biggest famines were caused by communist regimes in the Soviet Union and mainland China. Soviet dictator Josef Stalin’s famines killed up to 10 million people; China’s despot, Mao Zedong, starved 45 million between 1958 and 1962.

In the 21st century, war and political violence are still major causes of hunger around the world. Outbreaks of conflict in Syria, Yemen, Somalia, South Sudan, Afghanistan, and Nigeria are largely responsible for the recent uptick in the rate of global undernourishment. In other words, famines have disappeared outside of war zones. Much progress has been made, and the specter of famine no longer haunts the vast majority of humankind.

Pestilence

Prior to its eradication in 1979, smallpox was one of humanity’s oldest and most devastating scourges. The disease, which can be traced all the way back to pharaonic Egypt, was highly contagious. A 1775 French medical textbook estimated that 95 percent of the population contracted smallpox at some point during their lives.

In the 20th century alone, the disease is thought to have killed between 300 and 500 million people. The smallpox mortality rate among adults was between 20 and 60 percent. Among infants, it was 80 percent. That helps explain why life expectancy remained between 25 and 30 years for so long.

Edward Jenner, an English country doctor, noted that milkmaids never got smallpox. He hypothesized that the milkmaids’ exposure to cowpox protected them from the disease. In 1796, Jenner inserted cowpox pus from the hand of a milkmaid into the arm of a young boy. Jenner later exposed the boy to smallpox, but the boy remained healthy. Vacca is the Latin word for a cow—hence the English word vaccination.

The World Health Organization estimates that vaccines prevented at least 10 million deaths between 2010 and 2015 alone. Many millions more lives were protected from illness. As of 2018, global vaccination coverage remains at 85 percent, with no significant changes during the past few years. That said, an additional 1.5 million deaths could be avoided if global immunization coverage improves.

Improved sanitation and medicine account for many of the other wins against pestilence. Before the 19th century, people didn’t know about the germ theory of disease. Consequently, most people did not pay much attention to the water they drank. The results were often catastrophic, since contaminated water spreads infectious diseases, including diarrhea, dysentery, typhoid, polio, and cholera.

From 1990 to 2015, access to improved water sources rose from 76 percent of the world’s population to 91 percent. Put differently, 285,000 people gained access to clean water each day over that time period.

As a result of growing access to clean water and improved sanitation, along with the wider deployment of rehydration therapy and effective rotavirus vaccines, the global rate of deaths from diarrheal diseases stemming from rotavirus, cholera, and shigella has fallen from 62 per 100,000 in 1985 to 22 per 100,000 in 2017, according to The Lancet‘s Global Burden of Disease study that year. And thanks to constantly improving medicines and pesticides, malaria incidence rates decreased by 37 percent globally and malaria mortality rates decreased by 60 percent globally between 2000 and 2015.

War

Your chances of being killed by your fellow human beings have also been dropping significantly. Lethal interpersonal violence was once pervasive. Extensive records show that the annual homicide rate in 15th century England hovered around 24 per 100,000 residents, while Dutch homicide rates are estimated as being between 30 and 60 per 100,000 residents. Fourteenth century Florence experienced the highest known annual homicide rate: 150 per 100,000. The estimated homicide rates in 16th century Rome range from 30 to 80 per 100,000. Today, the intentional homicide rate in all of those countries is around 1 per 100,000.

The Cambridge criminologist Manuel Eisner notes that “almost half of all homicides worldwide occurred in just 23 countries that account for 10 per cent of the global population.” Unfortunately, medieval levels of violence still afflict such countries as El Salvador, Honduras, and South Africa, whose respective homicide rates are 83, 57, and 34 per 100,000 persons.

Nonetheless, the global homicide rate is falling: According to the Institute for Health Metrics and Evaluation, it has dropped from 6.4 per 100,000 in 1990 to 5.3 per 100,000 in 2016. That’s a reduction of 17 percent during a remarkably short period of 26 years, or 0.7 percent per year.

Another way to measure the general decline in violence is the global battle death rate per 100,000 people. Researchers at the Peace Research Institute Oslo have documented a steep post–World War II decline in the rate at which soldiers and civilians are killed in combat. The rate of battle deaths per 100,000 people reached a peak of 23 in 1953. By 2016, that had fallen by about 95 percent.

Apocalypse Later?

Some smart people acknowledge that considerable social, economic, and environmental progress has been made but worry that the progress will not necessarily continue.

“Human beings still have the capacity to mess it all up. And it may be that our capacity to mess it up is growing,” claims Cambridge political scientist David Runciman in The Guardian. He adds, “For people to feel deeply uneasy about the world we inhabit now, despite all these indicators pointing up, seems to me reasonable, given the relative instability of the evidence of this progress, and the [unpredictability] that overhangs it. Everything really is pretty fragile.”

Runciman is not alone. The worry that civilization is just about to go over the edge of a precipice has a long history. After all, many earlier civilizations and regimes have collapsed, including the Babylonian, Roman, Tang, Mayan, and, more recently, Ottoman and Soviet empires.

Yet there are good reasons for optimism. In their 2012 book Why Nations Fail, economists James Robinson of the University of Chicago and Daron Acemoglu of the Massachusetts Institute of Technology persuasively outline an explanation for the exponential improvement in human well-being that started about two centuries ago.

Before then, they argue, most societies were organized around “extractive” institutions—political and economic systems that funnel resources from the masses to the elites. In the 18th century, some countries—including Britain and many of its colonies—shifted from more extractive to more inclusive institutions.

“Inclusive economic institutions that enforce property rights, create a level playing field, and encourage investments in new technologies and skills are more conducive to economic growth than extractive economic institutions that are structured to extract resources from the many by the few,” the authors write. “Inclusive economic institutions are in turn supported by, and support, inclusive political institutions.”

Inclusive institutions are similar to one another in their respect for individual liberty. They include democratic politics, strong private property rights, the rule of law, enforcement of contracts, freedom of movement, and a free press. Inclusive institutions are the bases of the technological and entrepreneurial innovations that produced a historically unprecedented rise in living standards in those countries that embraced them, including the United States, Western Europe, Japan, and Australia.

While uneven and occasionally reversed, the spread of inclusive institutions to more and more countries is responsible for what the University of Illinois at Chicago economist Deirdre Nansen McCloskey calls the “Great Enrichment,” which has boosted average incomes 10- to 30-fold in those countries where they have taken hold.

The most striking examples of social disintegration—Roman, Tang, Soviet—occurred in extractive regimes. Despite crises such as the Great Depression, there are no examples so far of countries with long-established inclusive political and economic institutions suffering similar collapses.

In addition, major confrontations between relatively inclusive regimes and extractive regimes, such as World War II and the Cold War, have been won by the former. That suggests that liberal free market democracies harbor reserves of resilience that enable them to forestall or rise above shocks that destroy countries with brittle extractive systems.

If inclusive liberal institutions can continue to be strengthened and if they further spread across the globe, the auspicious trends documented here will extend their advance, and those that are currently negative will turn positive. By acting through inclusive institutions to increase knowledge and pursue technological progress, past generations met their needs and hugely increased our generation’s ability to meet our needs. We should do no less for future generations. That is what sustainable development looks like.

This article is based on data and analysis drawn from the author’s forthcoming book Ten Global Trends Every Smart Person Should Know (Cato), co-authored with HumanProgress.org editor and Cato Institute Senior Policy Analyst Marian L. Tupy.

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The Rise Of The American Gestapo

Authored by John Whitehead via The Rutherford Institute,

Adolf Hitler is alive and well in the United States, and he is fast rising to power.”

– Paul Craig Roberts, former Assistant Secretary of the Treasury, on the danger posed by the FBI to our civil liberties

Despite the finger-pointing and outcries of dismay from those who are watching the government discard the rule of law at every turn, the question is not whether Donald Trump is the new Adolf Hitler but whether the American Police State is the new Third Reich.

For those who can view the present and past political landscape without partisan blinders, the warning signs are unmistakable: the Deep State’s love affair with totalitarianism began long ago.

Indeed, the U.S. government so admired the Nazi regime that following the second World War, it secretly recruited Hitler’s employees, adopted his protocols, embraced his mindset about law and order, implemented his tactics in incremental steps, and began to lay the foundations for the rise of the Fourth Reich.

Sounds far-fetched? Read on. It’s all documented.

As historian Robert Gellately recounts, “After five years of Hitler’s dictatorship, the Nazi police had won the FBI’s seal of approval.” The Nazi police state was initially so admired for its efficiency and order by the world powers of the day that J. Edgar Hoover, then-head of the FBI, actually sent one of his right-hand men, Edmund Patrick Coffey, to Berlin in January 1938 at the invitation of Germany’s secret police—the Gestapo.

The FBI was so impressed with the Nazi regime that, according to the New York Times, in the decades after World War II, the FBI, along with other government agencies, aggressively recruited at least a thousand Nazis, including some of Hitler’s highest henchmen.

All told, thousands of Nazi collaborators—including the head of a Nazi concentration camp, among others—were given secret visas and brought to America by way of Project Paperclip. Subsequently, they were hired on as spies and informants, and then camouflaged to ensure that their true identities and ties to Hitler’s holocaust machine would remain unknown. All the while, thousands of Jewish refugees were refused entry visas to the U.S. on the grounds that it could threaten national security.

Adding further insult to injury, American taxpayers have been paying to keep these ex-Nazis on the U.S. government’s payroll ever since. And in true Gestapo fashion, anyone who has dared to blow the whistle on the FBI’s illicit Nazi ties has found himself spied upon, intimidated, harassed and labeled a threat to national security.

As if the government’s covert, taxpayer-funded employment of Nazis after World War II wasn’t bad enough, U.S. government agencies—the FBI, CIA and the military—have fully embraced many of the Nazi’s well-honed policing tactics, and have used them repeatedly against American citizens.

Indeed, with every passing day, the United States government borrows yet another leaf from Nazi Germany’s playbook: Secret police. Secret courts. Secret government agencies. Surveillance. Censorship. Intimidation. Harassment. Torture. Brutality. Widespread corruption. Entrapment. Indoctrination. Indefinite detention.

These are not tactics used by constitutional republics, where the rule of law and the rights of the citizenry reign supreme. Rather, they are the hallmarks of authoritarian regimes, where the only law that counts comes in the form of heavy-handed, unilateral dictates from a supreme ruler who uses a secret police to control the populace.

That danger is now posed by the FBI, whose laundry list of crimes against the American people includes surveillance, disinformation, blackmail, entrapment, intimidation tactics, harassment and indoctrination, governmental overreach, abuse, misconduct, trespassing, enabling criminal activity, and damaging private property, and that’s just based on what we know.

Whether the FBI is planting undercover agents in churches, synagogues and mosques; issuing fake emergency letters to gain access to Americans’ phone records; using intimidation tactics to silence Americans who are critical of the government; recruiting high school students to spy on and report fellow students who show signs of being future terrorists; or persuading impressionable individuals to plot acts of terror and then entrapping them, the overall impression of the nation’s secret police force is that of a well-dressed thug, flexing its muscles and doing the boss’ dirty work of ensuring compliance, keeping tabs on potential dissidents, and punishing those who dare to challenge the status quo.

Whatever minimal restrictions initially kept the FBI’s surveillance activities within the bounds of the law have all but disappeared post-9/11. Since then, the FBI has been transformed into a mammoth federal policing and surveillance agency that largely operates as a power unto itself, beyond the reach of established laws, court rulings and legislative mandates.

Consider the FBI’s far-reaching powers to surveil, detain, interrogate, investigate, prosecute, punish, police and generally act as a law unto themselves—much like their Nazi cousins, the Gestapo—and then try to convince yourself that the United States is still a constitutional republic.

Just like the Gestapo, the FBI has vast resources, vast investigatory powers, and vast discretion to determine who is an enemy of the state.

Today, the FBI employs more than 35,000 individuals and operates more than 56 field offices in major cities across the U.S., as well as 400 resident agencies in smaller towns, and more than 50 international offices. In addition to their “data campus,” which houses more than 96 million sets of fingerprints from across the United States and elsewhere, the FBI has also built a vast repository of “profiles of tens of thousands of Americans and legal residents who are not accused of any crime. What they have done is appear to be acting suspiciously to a town sheriff, a traffic cop or even a neighbor.” The FBI’s burgeoning databases on Americans are not only being added to and used by local police agencies, but are also being made available to employers for real-time background checks.

All of this is made possible by the agency’s nearly unlimited resources (its minimum budget alone in fiscal year 2015 was $8.3 billion), the government’s vast arsenal of technology, the interconnectedness of government intelligence agencies, and information sharing through fusion centers—data collecting intelligence agencies spread throughout the country that constantly monitor communications (including those of American citizens), everything from internet activity and web searches to text messages, phone calls and emails.

Much like the Gestapo spied on mail and phone calls, FBI agents have carte blanche access to the citizenry’s most personal information.

Working through the U.S. Post Office, the FBI has access to every piece of mail that passes through the postal system: more than 160 billion pieces are scanned and recorded annually. Moreover, the agency’s National Security Letters, one of the many illicit powers authorized by the USA Patriot Act, allows the FBI to secretly demand that banks, phone companies, and other businesses provide them with customer information and not disclose those demands to the customer. An internal audit of the agency found that the FBI practice of issuing tens of thousands of NSLs every year for sensitive information such as phone and financial records, often in non-emergency cases, is riddled with widespread constitutional violations.

Much like the Gestapo’s sophisticated surveillance programs, the FBI’s spying capabilities can delve into Americans’ most intimate details (and allow local police to do so, as well).

In addition to technology (which is shared with police agencies) that allows them to listen in on phone calls, read emails and text messages, and monitor web activities, the FBI’s surveillance boasts an invasive collection of spy tools ranging from Stingray devices that can track the location of cell phones to Triggerfish devices which allow agents to eavesdrop on phone calls.  In one case, the FBI actually managed to remotely reprogram a “suspect’s” wireless internet card so that it would send “real-time cell-site location data to Verizon, which forwarded the data to the FBI.” Law enforcement agencies are also using social media tracking software to monitor Facebook, Twitter and Instagram posts. Moreover, secret FBI rules also allow agents to spy on journalists without significant judicial oversight.

Much like the Gestapo’s ability to profile based on race and religion, and its assumption of guilt by association, the FBI’s approach to pre-crime allows it to profile Americans based on a broad range of characteristics including race and religion.

The agency’s biometric database has grown to massive proportions, the largest in the world, encompassing everything from fingerprints, palm, face and iris scans to DNA, and is being increasingly shared between federal, state and local law enforcement agencies in an effort to target potential criminals long before they ever commit a crime. This is what’s known as pre-crime. Yet it’s not just your actions that will get you in trouble. In many cases, it’s also who you know—even minimally—and where your sympathies lie that could land you on a government watch list. Moreover, as the Intercept reports, despite anti-profiling prohibitions, the bureau “claims considerable latitude to use race, ethnicity, nationality, and religion in deciding which people and communities to investigate.”

Much like the Gestapo’s power to render anyone an enemy of the state, the FBI has the power to label anyone a domestic terrorist.

As part of the government’s so-called ongoing war on terror, the nation’s de facto secret police force has begun using the terms “anti-government,” “extremist” and “terrorist” interchangeably. Moreover, the government continues to add to its growing list of characteristics that can be used to identify an individual (especially anyone who disagrees with the government) as a potential domestic terrorist. For instance, you might be a domestic terrorist in the eyes of the FBI (and its network of snitches) if you:

  • express libertarian philosophies (statements, bumper stickers)

  • exhibit Second Amendment-oriented views (NRA or gun club membership)

  • read survivalist literature, including apocalyptic fictional books

  • show signs of self-sufficiency (stockpiling food, ammo, hand tools, medical supplies)

  • fear an economic collapse

  • buy gold and barter items

  • subscribe to religious views concerning the book of Revelation

  • voice fears about Big Brother or big government

  • expound about constitutional rights and civil liberties

  • believe in a New World Order conspiracy

Much like the Gestapo infiltrated communities in order to spy on the German citizenry, the FBI routinely infiltrates political and religious groups, as well as businesses.

As Cora Currier writes for the Intercept: “Using loopholes it has kept secret for years, the FBI can in certain circumstances bypass its own rules in order to send undercover agents or informants into political and religious organizations, as well as schools, clubs, and businesses…” The FBI has even been paying Geek Squad technicians at Best Buy to spy on customers’ computers without a warrant.

Just as the Gestapo united and militarized Germany’s police forces into a national police force, America’s police forces have largely been federalized and turned into a national police force.

In addition to government programs that provide the nation’s police forces with military equipment and training, the FBI also operates a National Academy that trains thousands of police chiefs every year and indoctrinates them into an agency mindset that advocates the use of surveillance technology and information sharing between local, state, federal, and international agencies.

Just as the Gestapo’s secret files on political leaders were used to intimidate and coerce, the FBI’s files on anyone suspected of “anti-government” sentiment have been similarly abused.

As countless documents make clear, the FBI has no qualms about using its extensive powers in order to blackmail politicians, spy on celebrities and high-ranking government officials, and intimidate and attempt to discredit dissidents of all stripes. For example, not only did the FBI follow Martin Luther King Jr. and bug his phones and hotel rooms, but agents also sent him anonymous letters urging him to commit suicide and pressured a Massachusetts college into dropping King as its commencement speaker.

Just as the Gestapo carried out entrapment operations, the FBI has become a master in the art of entrapment.

In the wake of the 9/11 terrorist attacks the FBI has not only targeted vulnerable individuals but has also lured or blackmailed them into fake terror plots while actually equipping them with the organization, money, weapons and motivation to carry out the plots—entrapment—and then jailing or deporting them for their so-called terrorist plotting. This is what the FBI characterizes as “forward leaning—preventative—prosecutions.” In addition to creating certain crimes in order to then “solve” them, the FBI also gives certain informants permission to break the law, “including everything from buying and selling illegal drugs to bribing government officials and plotting robberies,” in exchange for their cooperation on other fronts. USA Todayestimates that agents have authorized criminals to engage in as many as 15 crimes a day. Some of these informants are getting paid astronomical sums: one particularly unsavory fellow, later arrested for attempting to run over a police officer, was actually paid $85,000 for his help laying the trap for an entrapment scheme.

When and if a true history of the FBI is ever written, it will not only track the rise of the American police state but it will also chart the decline of freedom in America, in much the same way that the empowerment of Germany’s secret police tracked with the rise of the Nazi regime.

How did the Gestapo become the terror of the Third Reich?

It did so by creating a sophisticated surveillance and law enforcement system that relied for its success on the cooperation of the military, the police, the intelligence community, neighborhood watchdogs, government workers for the post office and railroads, ordinary civil servants, and a nation of snitches inclined to report “rumors, deviant behavior, or even just loose talk.”

In other words, ordinary citizens working with government agents helped create the monster that became Nazi Germany. Writing for the New York Times, Barry Ewen paints a particularly chilling portrait of how an entire nation becomes complicit in its own downfall by looking the other way:

In what may be his most provocative statement, [author Eric A.] Johnson says that ‘‘most Germans may not even have realized until very late in the war, if ever, that they were living in a vile dictatorship.’’ This is not to say that they were unaware of the Holocaust; Johnson demonstrates that millions of Germans must have known at least some of the truth. But, he concludes, ‘‘a tacit Faustian bargain was struck between the regime and the citizenry.’’ The government looked the other way when petty crimes were being committed. Ordinary Germans looked the other way when Jews were being rounded up and murdered; they abetted one of the greatest crimes of the 20th century not through active collaboration but through passivity, denial and indifference.

Much like the German people, “we the people” have become passive, polarized, gullible, easily manipulated, and lacking in critical thinking skills.  Distracted by entertainment spectacles, politics and screen devices, we too are complicit, silent partners in creating a police state similar to the terror practiced by former regimes.

Had the government tried to ram such a state of affairs down our throats suddenly, it might have had a rebellion on its hands.

Instead, the American people have been given the boiling frog treatment, immersed in water that slowly is heated up—degree by degree—so that they’ve fail to notice that they’re being trapped and cooked and killed.

“We the people” are in hot water now.

The Constitution doesn’t stand a chance against a federalized, globalized standing army of government henchmen protected by legislative, judicial and executive branches that are all on the same side, no matter what political views they subscribe to: suffice it to say, they are not on our side or the side of freedom.

From Clinton to Bush, then Obama and now Trump, it’s as if we’ve been caught in a time loop, forced to re-live the same thing over and over again: the same assaults on our freedoms, the same disregard for the rule of law, the same subservience to the Deep State, and the same corrupt, self-serving government that exists only to amass power, enrich its shareholders and ensure its continued domination.

Can the Fourth Reich happen here?

As I point out in my book Battlefield America: The War on the American People, it’s already happening right under our noses.

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$100,000 Per Year Is Now The Bare Minimum To Live Alone In New York

It’s getting extremely difficult to live in New York if you’re making less than six figures, according to a new analysis from Bloomberg. The impact is being felt by those who live alone and it’s taking place in areas that were previously seen as affordable.

Solo renters in popular Brooklyn neighborhoods like Prospect Heights, Brooklyn Heights and Cobble Hill now need to be making at least $100,000 per year to live there, a dramatic change from just five years ago. The lower east side of Manhattan has also followed suit.

Readers can use this interactive map (after the jump) to explore the 5 year differences on many neighborhoods in lower Manhattan and Brooklyn. 

A study from StreetEasy looked at neighborhoods with at least 250 rentals available in 2019 and extrapolated the annual salary needed to afford a median one bedroom or studio apartment. They assumed that no more than 40% of income was spent on rent.

People in Manhattan living alone would need a gross income of $115,800, which is more than twice the city median of $57,782.

This chart details all of the increases in salary necessary for many neighborhoods over the last five years.

Some of the most “affordable” neighborhoods in the city required the biggest raises in salary over the last five years.

For instance, renters in East Flatbush need to earn 33% more than they did in 2014 to live alone, with that figure coming in at $68,000. Central Harlem now requires that you make $82,000 to live alone, up 21% and the largest increase in Manhattan for the period.

But hey, if those prices are too steep and if you want to live within your means in Manhattan, you could always look for something more affordable and rent a 300 square foot apartment

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