Is Anarcho-Capitalism Possible?

Authored by Antony Mueller via Mises Canada,

Even if one agrees that anarcho-capitalism has become a necessity, the question arises whether such a governance is possible. After all, at first sight, insurmountable problems seem to prevent the flourishing of a stateless society. Libertarianism means a private law society. Private businesses in the marketplace provide the traditional functions of the state. The voluntary contract-order of anarcho-capitalism substitutes the hierarchical commando-coordination of activities of the state. The basic meaning of anarcho-capitalism is an order where horizontal cooperation based on voluntary exchange dominates the coordination of human activities.

Although a libertarian order amounts to a revolution as to its consequences, the path to its creation must be non-revolutionary. The spontaneous order of an anarcho-capitalist society requires that it comes about as a gradual process of privatizations. Beginning with the sale of semi-public enterprises and public utilities, privatization should extend step by step to education and health and finally encompass security and the judicial system. Supervised by an Assembly whose members are selected by lot from the constituency of the citizens, the function of government would be handed out to a private government management company.

Under anarcho-capitalism, most of what the state supplies in services could fall to a fraction of the present volume. On a world-wide scale, military spending alone comprises around 1.7 trillion US-dollars annually. The so-called ‘public services’ would not only become better and cheaper, but it would also turn out that under a free market, the demand for education, healthcare, defense, and domestic security would be much different from how it is now. Therefore, to privatize many of the activities, which now are under the authority of state would not only lead to a decrease of the costs per unit of the services but also reduce the volume of supply because a large part of the current supply of so-called ‘public goods’ is a useless waste. Losing none of the genuine benefits of education, healthcare, and defense, the budgets for these provisions could fall to a fraction of their present size.

If one includes the overblown judicial and public administration apparatus into the reduction of state activity, government spending, which nowadays is close to fifty percent of the gross domestic product in most industrialized countries, could come down to the single digits. Taxes and contributions could fall by ninety percent.

Different from what is presently the dominant belief, to privatize the police functions, and the judiciary is not such a big problem. It would mean to extend what is already going on. In the United States of today, for example, private policing, such as by security guards, happens already at a grand scale and comprises more than one million persons. In some countries, including the United States, the number of private police and security already exceeds the number of official policemen. The private provision of judicial services is on the rise. Arbitration courts experience a strong and increasing demand including services for cross-border disputes.

These trends will go on because private protection and arbitration is cheaper and better than the public provision. In Brazil, for example, which entertains one of the most expensive judicial systems of the world, currently about eighty million cases are pending without decision, and legal uncertainty has become monstrous. In the United States, many parts of the judicial system have gone berserk.

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Currency In Focus: EUR – Just Not Letting Go Of The Default Trade

Submitted by Shant Movsesian and Rajan Dhall MSTA from fxdailyterminal.com

Over the past year or so, we have seen the EUR gaining from strength to strength, pushing hard against the USD which in the current climate seems to be getting little reprieve from the political backdrop required to instill confidence in any currency.

As we saw on Friday, the fallout in equities saw a rush for the safe havens, of which the USD has clearly fallen out of favour, and replaced a while back by the EUR, which is also benefits when risk appetite is healthier amid the constant reminder of the the robust recovery in the Euro zone.  The latter forms the basis on which many believe the ECB are falling behind the curve, but with inflation lagging – and this partly down to persistent surges in the EUR – the governing council have clearly been reluctant to call the end of QE for fear of another overreaction, which has taken hold of the JPY as the market calls, or rather pre-empts BoJ normalisation down the line. 

These ‘pro-active’ moves have been excessive in nature in more recent times, just as we saw with the BoC hikes prompting sharp gains on the rates curve as well as the CAD, but which have been sharply reversed, albeit with the overhang of NAFTA uncertainty which has been prevalent over this time.  With the EUR, it is the exchange rate which has been running away with it, less so rates as safe haven demand keeps short date German paper (in particular) bid to keep rates negative out to 5yr.   Spreads with the periphery are the focal point as a result, and have narrowed to some degree though naturally we saw Italian BTPs come under pressure during the elections.  This only resulted in a minor dip in the single currency, with long exposure still relatively high despite the spot rate clearly looking overstretched above the 1.2500 mark.  

As ECB policy is inevitably on the turn, we once again expect economic divergence to start showing the strains on the level at which the various member states expect monetary policy to be.  It is no surprise to see the German contingent leading the calls for the ECB to call time on the APP, but even the Buba’s Weidmann has conceded that rates will only rise well past the date bond buying cessation.  Given this to be the case, we struggle to see what this insistence on forward guidance at this stage will do (rather than actually implementing it), given German business sentiment is starting to show concerns over the level of the exchange rate, and more so now when trade tensions are reaching fever pitch.  

Rather than join the chorus looking for a EUR/USD move up to 1.3000 this year, which is in part predicated on further USD weakness, we continue to see a move back down to 1.2000 at some stage, but this does not rule out another stab at 1.2500, perhaps the 1.2600 level where we can only see exhaustion setting in again.  If we do test higher levels first, this will then be the fourth (or fifth) time we have stalled at higher levels, the last episode falling shorting in the mid 1.2400’s.  We highlight this pair due to the continued exposure levels as well as the overcrowded USD shorts in the market, which are also vulnerable to activity in the equity markets, based on a potential follow through into emerging markets and a (USD) squeeze as a result.  

Looking to some of the other currency pairings, EUR/JPY has come some way south of the highs seen closer to 137.00-138.00 this year, but on the daily charts has a lot of room on the downside before we reach value levels highlighted in the 115.00-110.00 area.  In contrast, USD/JPY failed to test the 114.00-115.00 area before heading south, and has clawed its way through 105.00, but with limited momentum given the lack of breathing space north of 107.00.  These are key technical factors which are worth considering, as we can no longer ignore the developments in the stock market, which are not only down to fears of a trade war, but of a Federal Reserve maintaining their gradual approach to rate normalisation.  The ECB would have perhaps been hoping for a more hawkish ‘delivery’, but will have to delay the inevitable in the hope that the market finally takes note of interest rate differentials, which have been roundly cold-shouldered in this era of trading off expectations even further out on the horizon.  

As an aside, we saw the USD reaction to last week’s rate hike as borderline bizarre, and if anything, more constructive for the greenback given an immediate move to 4 hikes this year would have flattened the Treasury curve.  It didn’t.  

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Facebook Has Been Storing Logs Of Phone Calls, Text Messages For Years: Report

As the #deletefacebook campaign gains traction in the wake of the Cambridge Analytica data harvesting scandal, a number of people have reported that Facebook has also maintained a comprehensive record of phone calls and text messages on Android devices.

If you granted permission to read contacts during Facebook’s installation on Android a few versions ago—specifically before Android 4.1 (Jelly Bean)—that permission also granted Facebook access to call and message logs by default. The permission structure was changed in the Android API in version 16. But Android applications could bypass this change if they were written to earlier versions of the API, so Facebook API could continue to gain access to call and SMS data by specifying an earlier Android SDK version. Google deprecated version 4.0 of the Android API in October 2017—the point at which the latest call metadata in Facebook users’ data was found. Apple iOS has never allowed silent access to call data. –Ars Technica

Last week, New Zealander Dylan McKay requested his data from Facebook. Upon unzipping the downloaded file, McKay discovered that Facebook had stored around two years’ worth of metadata from phone calls he had made or received. 

McKay’s grandmother emailed him a photo of SMS text messages logged by Facebook.

Others have reported similar data logged from their devices: 

Facebook explained that users’ contacts were uploaded in a “widely used practice.” 

“The most important part of apps and services that help you make connections is to make it easy to find the people you want to connect with. So, the first time you sign in on your phone to a messaging or social app, it’s a widely used practice to begin by uploading your phone contacts,” said the company.

“Contact uploading is optional. People are expressly asked if they want to give permission to upload their contacts from their phone – it’s explained right there in the apps when you get started. People can delete previously uploaded information at any time and can find all the information available to them in their account and activity log from our Download Your Information tool.”

 

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Paul Craig Roberts: Washington Has Declared Hegemony Or War

Authored by Paul Craig Roberts,

I agree with Stephen Lendman (below) that the Russian government’s efforts to deal with the West on the basis of evidence and law are futile.  There is only one Western foreign policy and it is Washington’s.  Washington’s “diplomacy” consists only of lies and force.  It was a reasonable decision for Russia to attempt diplomatic engagement with the West on the basis of facts, evidence, and law, but it has been to no avail.  For Russia to continue on this failed course is risky, not only to Russia but to the entire world.

Indeed, nothing is more dangerous to the world than Russia’s self-delusion about “Western partners.”  Russia only has Western enemies. These enemies intend to remove the constraint that Russia (and China) place on Washington’s unilateralism. The various incidents staged by the West, such as the Skirpal poisoning, Syrian use of chemical weapons, Malaysian airliner, and false charges, such as Russian invasion of Ukraine, are part of the West’s determined intent to isolate Russia, deny her any influence, and prepare the insouciant Western populations for conflict with Russia. 

To avoid war Russia should turn her back, but not her eyes, on the West, stop responding to false charges, evict all Western embassies and every other kind of presence including Western investment, and focus on relations with China and the East.  Russia’s attempt to pursue mutual interests with the West only results in more orchestrated incidents. The Russian government’s failure to complete the liberation of Syria has given Washington Syrian territory from which to renew the conflict.

The failure to accept Luhansk and Donetsk into Russia has provided Washington with the opportunity to arm and train the Ukrainian army and renew the assault on the Russian populations of Ukraine. Washington has gained many proxies for its wars against Russia and intends to use them to wear down Russia. Israel has demanded that Washington renew the attacks on Iran, and Trump is complying. Russia faces simultaneous attacks on Syria, Iran, and the Donatsk and Luhansk Republics, along with troubles in former Central Asian republics of the Soviet Union and intensified accusations from Washington and NATO.

The crazed neoconservatives, such as Trump’s National Security Adviser John Bolton, think that Russia will buckle under the strains, sue for peace, and accept US hegemony. If this assumption is incorrect, the outcome of Washington’s hostile actions against Russia is likely to be nuclear war. The side that Stephen Lendman and I are talking is neither the side of Washington nor Russia, but the side of humanity and all life against nuclear war.

How the Russian government could ignore the clearly stated US hegemony in the 1992 Wolfowitz Doctrine is a mystery.

The Wolfowitz doctrine states  that the US’s primary goal is “to prevent the re-emergence of a new rival, either on the territory of the former Soviet Union or elsewhere, that poses a threat on the order of that posed formerly by the Soviet Union.” The doctrine stresses that “this is a dominant consideration underlying the new regional defense strategy and requires that we endeavor to prevent any hostile power from dominating a region whose resources would, under consolidated control, be sufficient to general global power.” In the Middle East and Southwest Asia, Washington’s “overall objective is to remain the predominant outside power in the region and preserve US and Western access to the region’s oil.” The doctrine also states that the US will act to restrain India’s alleged “hegemonic aspirations” in South Asia, and warns of potential conflicts requiring military intervention with Cuba and China.

By “threat” Wolfowitz does not mean a military threat.  By “threat” he means a multi-polar world that constrains Washington’s unilateralism. The doctrine states that the US will permit no alternative to US unilateralism. The doctrine is a statement that Washington intends hegemony over the entire world.  There has been no repudiation of this doctrine.  Indeed, we see its implementation in the long list of false accusations and demonizations of Russia and her leader and in the false charges against Syria, Iraq, Afghanistan, Libya, Somalia, Yemen, Venezuela, China, Iran, and North Korea.  

If Russia wants to be part of the West, Russia should realize that the price is the same loss of sovereignty that characterizes Washington’s European vassal states.

*  *  * 

Neocon Takeover of Washington Completed

by Stephen Lendman

Pompeo at State and Bolton as Trump’s national security advisor completed the neocon takeover of Trump’s geopolitical agenda. Wall Street is running domestic affairs.

The combination represents a major setback for world peace and stability. Greater aggression is likely, along with the triumph of neoliberal harshness over social justice, presenting a dismal and frightening state of affairs. 

What to expect ahead? War in Syria is more likely to escalate than wind down, an unthinkable US/Russia confrontation ominously possible.

The Iran nuclear deal is either doomed, or likely to be gutted by Washington, accomplishing the same thing — with only tepid, ineffective opposition from P5+1 countries Britain, France and Germany.

The EU most often bends to Washington’s will when enough pressure is applied.

A relatively quiet Ukraine period could explode in greater Kiev war on Donbass, US-supplied heavy weapons and training aiding the aggression.

A Kim Jong-un/Trump summit is likely to fail to step back from the brink on the Korean peninsula, falsely blaming the DPRK for hostile US actions.

It’ll prove again Washington can never be trusted, its commitments are consistently breached when conflicting with its imperial objectives.

A possible trade war with China would be hugely destabilizing, along with being economically harmful to both countries and the global economy.

Further EU/US sanctions and other harsh measures are likely to be imposed on Russia over the Skripal affair, an escalated attempt to isolate the country and inflict economic harm – despite Western nations knowing Moscow had nothing to do with what happened.

Theresa May-led Tories are considering tough actions against Russia over the incident. So are other EU countries and Washington.

On Friday, State Department spokeswoman Heather Nauert said the Trump administration is considering a range of options against Moscow over the Skripal affair – “both to demonstrate our solidarity with our ally and to hold Russia accountable for its clear breach of international norms and agreements.”

No breach occurred. Neocons running US foreign policy don’t let facts and rule of law principles compromise their imperial objectives.

Theresa May provided Angela Merkel and Emmanuel Macron with cooked results of Britain’s investigation so far into the Skripal affair — “convincing” them the false accusations are “well-grounded,” despite knowing UK claims are pure rubbish.

Macron issued a deplorable statement, saying “there is no…plausible explanation” for what happened to the Skripals other than Kremlin responsibility – abdicating to US/UK-led Russophobic hostility.

On the world stage, Trump is hostage to neocon dark forces controlling him. Relations with Russia, China, and other sovereign independent nations are likely to worsen, not improve.

Unthinkable nuclear war remains an ominous possibility. Russia’s only option is building on its alliance with China and other allies, staying committed to respond firmly to US-led Western harshness against its sovereignty.

Virtually no possibility for improved Russian relations with Washington and Britain exists. It’s fruitless pursuing it.

German and other European dependence on Russian energy, mainly gas, offers only slim hope for improving things with these countries.

Looking ahead, prospects for world peace and stability are dismal. US-led Western hostility toward Russia could erupt in open conflict by accident or design.

The unthinkable could become reality. Preparedness should be Moscow’s top priority given the real danger it faces.

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Coulter On War Path After Trump Caves On Omnibus: “We Thought We Were Getting A Negotiator”

Conservative pundit Ann Coulter has been on the war path since President Trump “begrudgingly” signed the $1.3 trillion omnibus spending bill on Friday – even tweeting on Friday morning that he was “considering a VETO” over the fact that the bill didn’t include provisions for DACA recipients or the border wall. 

“I will never sign another bill like this again,” said Trump during Friday’s signing – to which Coulter replied “Yeah, because you’ll be impeached.” 

Coulter also congratulated “President Schumer” over the the bill’s passage.

Of note, House Minority Leader Nancy Pelosi (D-CA) and Senator Chuck Schumer (D-NY) declared the spending bill rushed through by Republicans a “victory.”

And on Sunday, Coulter appeared on Fox News where she told host Jeanine Pirro how disappointed she was in Trump.

“We thought that perhaps he was not the world’s greatest negotiator but a negotiator and we got nothing,” said Coulter. “There was only one guy who said at every speech, at every rally, for two years that he would build the wall,” adding “He has now signed a bill to prohibit building the wall.”

Coulter noted that the omnibus spending bill only contained $1.6 billion in funding for Trump’s awll, which is devoted to shoring up current fencing, and uses none of the new wall designs Trump toured two weeks ago

Trump had originally asked for $25 billion over 10 years for the project.

Judge Pirro defended Trump, telling Coulter that the omnibus bill passed because “the Republicans didn’t care enough.” 

But we knew that. We knew that from Trump’s campaign. We knew they were swine,” replied Coulter. “There is no more crucial attack on our national defense than the fact that we don’t have a wall.

Coulter talked more trash over Twitter Sunday, tweeting “No wonder Kim Jong-un wants to have a sit-down negotiation with Trump. He’ll walk away with working nukes.

That said, some have posited that Trump is going to use the military budget contained within the omnibus bill to fund the wall anyway: 

Immediately after he alluded to the wall’s military function, Trump called upon Gen. James Mattis to comment on the newly secured military budget.

“In 1790, in George Washington’s first annual address to Congress, he stated, to be prepared for war is one of the most effective means of preserving the peace,” Mattis said. “Now, it’s our responsibility in the military to spend every dollar wisely in order to keep the trust and the confidence of the American people and the Congress.”

The general’s mention of “spending every dollar wisely” stood out in particular because the military would have to secure just 3.8 percent in cost savings in order to fund the wall construction.

Considering how urgently Trump wants to build the wall, it’s a surprise he didn’t float the military option earlier. As commander in chief, he has ultimate power over the military.  –Epoch Times

Coulter instead suggested this was more subterfuge;

As we reported on Friday, Coulter isn’t the only conservative to take issue with Trump signing the bill…

So with Coulter calling out the “great negotiator” Trump for his failure to negotiate, and much of Trump’s base in disarray over the omnibus bill and the appointment of Iran hawk John Bolton as National Security Advisor, one wonders if libertarian-leaning conservatives who believed “this time it’s different” might find themselves a bit deflated come midterms. 

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How The Military Controls America

Authored by Eric Zuesse, originally posted at strategic-culture.org,

Unlike corporations that sell to consumers, Lockheed Martin and the other top contractors to the U.S. Government are highly if not totally dependent upon sales to governments, for their profits, especially sales to their own government, which they control – they control their home market, which is the U.S. Government, and they use it to sell to its allied governments, all of which foreign governments constitute the export markets for their products and services.

These corporations control the U.S. Government, and they control NATO. And, here is how they do it, which is essential to understand, in order to be able to make reliable sense of America’s foreign policies, such as which nations are ‘allies’ of the U.S. Government (such as Saudi Arabia and Israel), and which nations are its ‘enemies’ (such as Libya and Syria) – and are thus presumably suitable for America to invade, or else to overthrow by means of a coup. First, the nation’s head-of-state becomes demonized; then, the invasion or coup happens. And, that’s it. And here’s how.

Because America (unlike Russia) privatized the weapons-industry (and even privatizes to mercenaries some of its battlefield killing and dying), there are, in America, profits for investors to make in invasions and in military occupations of foreign countries; and the billionaires who control these corporations can and do – and, for their financial purposes, they must – buy Congress and the President, so as to keep those profits flowing to themselves.

That’s the nature of the war-business, since its markets are governments – but not those governments that the aristocracy want to overthrow and replace. The foreign governments that are to be overthrown are not markets, but are instead targets.  The bloodshed and misery go to those unfortunate lands. But if you control these corporations, then you need these invasions and occupations, and you certainly aren’t concerned about any of the victims, who (unlike those profits) are irrelevant to your business.

In fact, to the exact contrary: killing people and destroying buildings etc., are what you sell – that’s what you (as a billionaire with a controlling interest in one of the 100 top contractors to the U.S. Government) are selling to your own government, and to all of the other governments that your country’s cooperative propaganda will characterize as being ‘enemies’ — Iraq, Afghanistan, Syria, Yemen, etc. — and definitely not as being ‘allies’, such as are being characterized these corporations’ foreign markets: Saudi Arabia, EU-NATO, Israel, et cetera.

In fact, as regards your biggest foreign markets, they will be those ‘allies’; so, you (that is, the nation’s aristocracy, who own also the news-media etc.) defend them, and you want the U.S. military (the taxpayers and the troops) to support and defend them. It’s defending your market, even though you as the controlling owner of such a corporation aren’t paying the tab for it. The rest of the country is actually paying for all of it, so you’re “free-riding” the public, in this business.

It’s the unique nature of the war-business, and a unique boon to its investors.

Thus, on 21 May 2017, U.S. President Donald Trump sold to the Saud family, who own Saudi Arabia, an all-time-record $350 billion of U.S. arms-makers’ products, which they’re now obligated to buy during the following ten years, with an up-front commitment of $100 billion during just the first year, so as to make even that one-year commitment an all-time record. This deal is by far the biggest part of Trump’s boost to American manufacturers – but it’s only to military manufacturers, the people who depend virtually 100% on sales to governments, specifically to ‘friendly’ governments: to ‘allies’, such as, in this case, to the Saud family.

In fact, the Sauds’ war against their neighbor Yemen is a good example of just how this sort of operation (profit to the billionaires, bloodshed and destruction to – in this case – the Yemenites) works:

Yemen’s war goes back to the “Arab Spring” revolution in Yemen, which overthrew the U.S.-and-Saud-backed President, former Colonel and then General, Saleh. Wikipedia says of him: “According to the UN Sanctions Panel, by 2012 Saleh has amassed fortune worth $32-60 billion hidden in at least twenty countries making him one of the richest people in the world. Saleh was gaining $2 billion a year from 1978 to 2012 mainly through illegal methods, such as embezzlement, extortion and theft of funds from Yemen’s fuel subsidy program.”

And, furthermore: “New York Times Middle Eastern correspondent Robert F. Worth described Saleh as reaching an understanding with powerful feudal ‘big sheikhs’ to become ‘part of a Mafia-style spoils system that substituted for governance’. Worth accused Saleh of exceeding the aggrandizement of other Middle Eastern strongmen by managing to ‘rake off tens of billions of dollars in public funds for himself and his family’ despite the extreme poverty of his country.” Saleh fled to Saudi Arabia. Yemen’s Army installed the Vice President, and former General, Hadi to succeed him. Then, there was a second revolution, and, on 21 January 2015, the Shia Houthi tribe took over, and the rabidly anti-Shia Saud family promptly started their bombing of Yemen, using American training, weaponry and tactical and refueling support. The U.S. Government – like its ally the Saud family — is rabidly anti-Shia.

That’s to say: The U.S. aristocracy, like Saudi Arabia’s aristocracy (the royal family), is rabidly anti-Shia. But, whereas for the Sauds, this is motivated more by hate than by greed, it’s more greed than hate on the U.S. side, because at least ever since the U.S. coup in the leading Shia country, Iran, in 1953, it’s been purely about greed, specifically that of the oil (and other) companies who also (in addition to the armaments-firms) control U.S. foreign policies. (For example, international oil companies need to extract and sell oil from many countries. They’re highly dependent upon the military, though not nearly to the extent that the weapons-firms are.)

The most recent poll that has been taken of American public opinion regarding America’s arming and training Saudi forces to fly over and bomb Yemen was taken during November 2017, tabulated on 28 January 2018, and finally published a month later, on 28 February 2018. This “Nationwide Voter Survey – Report on Results – January 28, 2018” asked 1,000 scientifically sampled American voters, “Question: Congress is considering a bi-partisan bill to withdraw U.S. forces from the Saudi-led war in Yemen. Would you say that you support or oppose this bill?” It reported that, “Support” was 51.9%, “Oppose” was 21.5%, no opinion was 26.6%; and, so, 71% of the opinions were “Support”; only 29% were “Oppose.”

That’s more than two-thirds supporting this bill to consider withdrawing U.S. forces from that war. But, when the vote was taken in the U.S. Senate, it was 55% opposing the bill, opposing, that is, consideration of the matter, and 44% supporting consideration of the matter (and not voting was 1% of the 100 Senators). 55% of Senators didn’t want the Senate to even consider the matter. Here’s how the issue had managed to get even that far:

On 4 December 2017, just weeks after that poll of Americans was taken, Russian Television headlined “Saleh’s death means a fresh hell beckons for Yemen”, and the U.S. Government’s participation in the bombing of Yemen then did increase. This event — the murder of Saleh — raised the Yemen war to broader public attention in the country that was supplying the bombs and the weapons to the Sauds.

On 28 February 2018, U.S. Senator Bernie Sanders was the lone sponsor of “S.J.Res.54 — 115th Congress (2017-2018)”: “This joint resolution directs the President to remove U.S. Armed Forces from hostilities in or affecting Yemen, except those engaged in operations directed at Al Qaeda, within 30 days unless: (1) the President requests and Congress authorizes a later date, or (2) a declaration of war or specific authorization for the use of the Armed Forces has been enacted.”

On March 19th, NBC bannered “Senators to force vote to redefine U.S. role in Yemen” – that was merely to force a vote in the Senate, not actually to vote on the issue itself. However, given how overwhelmingly America’s voters opposed America’s arming the Sauds to slaughter the Yemenese, this vote in the Senate to consider the measure was the gateway to each Senator’s being forced to go public about supporting this highly unpopular armament of the Saudis; and, so, if it had gotten that far (to a final vote on the issue itself), the arms-makers might lose the vote, because Senators would then be voting not ‘merely’ on a procedural matter, but on the actual issue itself. So, this vote was about the gateway, not about the destination. 

The next day, Breitbart News headlined “Administration, Bipartisan Interventionist Establishment Kill Aisle-Crossing Effort to Rein In U.S. Military Involvement in Yemen” and presented a full and documented account, which opened: “The Senate resolution invoking the War Powers Act to demand the administration seek congressional authorization or withdraw American support from Saudi Arabia’s military operations in Yemen was defeated Tuesday by a vote of 55-44.” The peace-activist, David Swanson, headlined at Washingtonsblog, “Why 55 U.S. Senators Voted for Genocide in Yemen”, and he alleged that the vote would have been even more lopsided than 55% for the weapons-industry, if some of the Senators who voted among the 44 non-bloodthirsty ones hadn’t been in such close political races. The weapons-industry won’t hold against a Senator his/her voting against them if their vote won’t even be needed in order to win. Token-votes against them are acceptable. All that’s necessary is winning the minimum number of votes. Anything more than that is just icing on the cake.

So, this explains how the U.S. Government really ignores public opinion and only pretends to be a democracy. It’s done by fooling the public. On the issue of which countries are ‘allies’ and which are ‘enemies’, and other issues regarding national defense, all necessary means are applied in order to achieve, as Walter Lippmann in 1921 called it, “the manufacture of consent.” He wrote:

That the manufacture of consent is capable of great refinements no one, I think, denies. The process by which public opinions arise is certainly no less intricate than it has appeared in these pages, and the opportunities for manipulation open to anyone who understands the process are plain enough.

The creation of consent is not a new art. It is a very old one which was supposed to have died out with the appearance of democracy. But it has not died out. It has, in fact, improved enormously in technic, because it is now based on analysis rather than on rule of thumb. And so, as a result of psychological research, coupled with the modern means of communication, the practice of democracy has turned a corner. A revolution is taking place, infinitely more significant than any shifting of economic power.

The CIA virtually controls the ‘news’ media.

Furthermore, even corporations that aren’t on that list of top 100 U.S. Government contractors can be crucially dependent upon their income from the U.S. Government. For example, since 2014, Amazon Web Services has supplied to the U.S. Government (CIA, Pentagon, NSA, etc.) its cloud-computing services, which has since produced virtually all of Amazon’s profits (also see “Cloud Business Drives Amazon’s Profits”), though Amazon doesn’t even so much as show up on that list of 100 top contractors to the U.S. Government; so, this extremely profitable business is more important to Jeff Bezos (the owner also of the Washington Post) than all the rest of his investments put together are.

The most corrupt part of the U.S. Government is the ‘Defense’ part. That also happens to be — and by far — the most popular part, the most respected (by the American public) part. That’s a toxic combination: toxic not only for a government’s domestic policies, but especially for a government’s foreign policies – such as for identifying which nations are ‘allies’, and which nations are ‘enemies’. This type of mega-toxic combination can’t exist in a nation whose press isn’t being effectively controlled by the same general group that effectively controls the Government (in America, that’s the richest few, by means of their many paid agents), the Deep State. In America, one key to it is that the ‘Defense’ firms are privately owned.

*  *  *

POSTSCRIPT:

On March 24th, Zero Hedge Headlined an opinion-article “The Death of Democracy” and Alasdair Macleod said that, “The Deep State is on course to take control of Congress. If this happens, it will be the next step in a global trend of side-lining democracy in the West, driven in large part by American foreign policy. It has led to governments everywhere increasing control over their people, in an inversion of democratic principles.”

Furthermore: “The Democratic Congressional Campaign Committee has identified 102 seats as ‘competitive’ in its red-to-blue campaign programme. Eighty of these seats are vulnerable Republicans, and 22 are seats where the incumbent is retiring. 57 of the 221 candidates standing for the Democratic nomination in these 102 districts are current or past agents of the military-intelligence complex. And of those 102 districts, 44 have one of these candidates, 11 have two, and one has three. Furthermore, there are indications that the financial backers of the Democratic Party are supporting this influx of intelligence operatives, and that they are well-funded.”

Macleod went on to say that they’ve already apparently taken over Trump: “There can be no doubt that the chaos in the White House since Trump’s victory has reflected a fight behind the scenes for control of foreign policy, homeland security and military spending. It has been about the CIA’s ultimately successful attempts to ensure Trump backtracked on relevant electoral promises and complies with its own agenda. So far, Trump has backed down on Russia, North Korea, Iran and on military spending, suggesting he is well on the way to becoming the Deep State’s lackey. It now seems the CIA wants to control the balance of power in Congress.”

His conclusion is: “If the US military-intelligence complex manages to pack out Congress, it will be the killer blow for any democracy remaining in America. It will clear the field for a secret state organisation, which has shown little or no regard for human life and the rule of law, to accelerate its warlike agenda. It will have unfettered access to the national finances to accelerate its programme of global aggression, and damn the consequences for anyone else.”

*  *  *

Investigative historian Eric Zuesse is the author, most recently, of  They’re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010, and of  CHRIST’S VENTRILOQUISTS: The Event that Created Christianity.

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US Reaches Trade Deal With South Korea; Mnuchin “Hopeful” Of Trade Truce With China

In some welcome news amid escalating global trade war fears, on Sunday the U.S. and South Korea reached an agreement on revising the existing 6-year-old bilateral trade deal as well as Trump’s plan to impose tariffs on steel imports, Treasury Secretary Steven Mnuchin said.

Speaking on Fox News Sunday, Mnuchin said U.S. Trade Representative Robert Lighthizer reached “a very productive understanding” with South Korea on the tariffs to reduce imports and the existing trade deal known as Korus, and added that he expects “to sign that agreement soon.” The resolution means that the US now has tariff exemptions with the EU, Australia, Brazil, Argentina, and South Korea.

As a result of the agreement, which he called “an absolute win-win”, South Korea “will reduce the amount of steel that they send into the United States.”

South Korea – the world’s 7th largest export economy, whose exports amount to a whopping 45% of GDP – had a trade surplus with the U.S. of about $18 billion in 2017, down from $23 billion in 2016, with cars accounting for more than 70% of the value of the surplus.

Bloomberg adds that S.Korea Trade Minister Kim Hyun-chong also said trade negotiators from the two countries agreed “in principle” on both issues.  Oddly, Kim said South Korea made no concessions to further open its agricultural market to U.S. exporters – something he described as a red line. He also said that there’s been “no retreat” on tariffs removed in Korus, which is strange because somehow the two sides are said to have reached a compromise, yet neither admits to “retreating” on policy issues.

Previously, frictions over Korus emerged when Trump blamed the U.S.’s large trade deficit with South Korea on the “horrible” agreement, and as a result, the open issue has been seen as a potential wedge between the allies as both their leaders plan for expected meetings with North Korean leader Kim Jong Un.

The Trade Ministry said Kim will brief on the outcome of the trade negotiation to media Monday morning.

* * *

Separately, Mnuchin also said he’s optimistic that the U.S. can reach a agreement with China that will eliminate the need to impose the tariffs that Trump ordered on a least $50 billion of goods from that country. “We’re having very productive conversations with them,” Mnuchin also told Fox on Sunday. “I’m cautiously hopeful we reach an agreement.”

A day after Trump’s announcement, China unveiled $3 billion in tariffs on U.S. imports in response to steel and aluminum duties ordered by Trump earlier this month. While the retaliation appeared modest, as we reported on Friday citing the editor in chief of China’s state owned Global Times, that $3 billion was in response to the previous, Section 232 round of tariffs, and had nothing to do with the latest round of $50BN in Section 301 tariffs.

I learned that Chinese govt is determined to strike back. Friday’s plan to impose $3b tariffs is to retaliate tariffs on steel and aluminum products. China’s retaliation lists against the 301 investigation will target US products worth $ tens of billions. It is in the making.

And while we still wait what China’s full-blown response will be to the “301” sanctions, the White House also declared a temporary exemption for the European Union and other nations on those levies, making the focus on China clear.

The U.S. will proceed with tariffs “unless we have an acceptable agreement that the president signs off on” Mnuchin said, adding that “we’re not afraid of a trade war, but that’s not our objective. In a negotiation you have to be prepared to take action.”

Meanwhile, in the latest not so veiled threat, on Saturday the People’s Daily newspaper on Saturday listed U.S. companies that’d be “most damaged” if a trade war began, and included Apple, Intel and Boeing.  Should there be no immediate resolution to the China-US trade war, look for these three companies to take the brunt of the market pain in the coming week.

And sure enough, Apple’s Tim Cook – who coincidentally was in a forum in Beijing on Saturday – said he’s going to encourage that “calm heads prevail” on the potential trade war. China is Apple’s single most important market outside the U.S. “The countries that embrace openness do exceptional and the countries that don’t, don’t,” he said. “It’s not a matter of carving things up between sides.” And, if it is, it will be Apple that will be among the companies most impacted as a result of its massive trans-Pacific supply chains.

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Abe Apologizes For Scandal That Is Rocking His Government, Refuses To Quit

It’s not looking good for Japan’s Prime Minister Shinzo Abe: with his rating in the toilet amid a suspected cronyism scandal and cover-up…

… and once again flirting with the level that has historically led to the resignation of his predecessors…

… Abe apologized on Sunday for causing anxiety and loss of confidence in his government.

It is unknown if again saying sorry will be enough this time: protesters urged Abe to resign, as riot police kept tight security outside the venue of his ruling party’s annual convention, at which the premier stressed his intention to revise Japan’s pacifist post-war, U.S.-drafted constitution according to Reuters.

Abe is facing the biggest political crisis since again taking office in December 2012 (his first stint as Japan’s PM was ended a decade ago by a case of pathological diarrhea) as the Moritomo scandal returned two weeks ago, raising suspicions swirl about a sale of state-owned land at a huge discount to a nationalist school operator with ties to his wife.

And, as the chart above show, “this problem has shaken the people’s confidence in the administration,” Abe admitted to the convention. “As head of the government, I keenly feel my responsibility and would like to deeply apologize to the people.”

Abe bows as he delivers an apology during the LDP annual party convention in Tokyo

And while he pledged a thorough clarification of the facts and the prevention of a recurrence by pulling the government together – in other words more lies to explain why he got caught lying about the previous lies – he offered no sign of stepping down.

As we reported previously, Abe has denied that he or his wife intervened in the sale or that he sought to alter documents related to the deal, while his close ally, Finance Minister Taro Aso, also denied involvement in the alterations made by ministry officials, despite the emergence of documents which showed the government had doctored reports “removing” the name of Abe and his wife, confirming a coverup had taken place.

Public opinion polls last weekend showed support for Abe’s cabinet sinking as low as 31% , with most respondents saying he bears some responsibility for the affair, and according to Reuters, the sliding support could crush Abe’s hope of winning a third three-year term as ruling Liberal Democratic Party leader in a party vote in September, victory in which would set him on track to become Japan’s longest ruling premier.

Meanwhile, outside the convention, protesters demanded that Abe either resign, or alternatively, go to prison.

“We’re protesting to defeat Abe’s government through our voices and the anger of the people,” said Fumiko Katsuragi, 69, who was among hundreds of protesters gathered in a Tokyo park where cherry blossoms were in full bloom. Some held banners that read “Go to jail Abe” and “No constitutional revision or war,” while right-wingers gathered nearby amid police security.

Also at the party convention, Reuters reports that the LDP adopted a proposal to revise the pacifist constitution in line with a plan floated by Abe last year to explicitly refer to the Self-Defense Forces, as Japan’s military is known.

“The time has finally come to tackle constitutional revision, which has been a task since the founding of the party,” Abe said.

“Let’s stipulate the Self-Defense Forces and put an end to a controversy about violation of the constitution.”

Abe proposed last May that the first two clauses of Article 9, which renounces the right to wage war and bans maintenance of a standing military, be unchanged but that a reference to the SDF be added to clarify its ambiguous status in what some have seen as a precursor to military intervention in North Korea.

Despite its literal ban on a standing army, successive governments have interpreted the charter to allow a military exclusively to defense. Abe wants to make that stance clear in the constitution itself, but says the change will not alter Japan’s security policies. At the same time, critics worry the revision would open the way to a bigger role for the military overseas.

Complicating matters, the ongoing Moritomo scandal which has crushed Abe support, coupled with an increasingly wary junior coalition partner, could make it virtually impossible for the LDP to push for the change, which would spark a divisive debate and potentially another government crisis.

Japan’s constitution has never been amended and any changes require approval by two-thirds of each house of parliament and a majority in a public referendum.

As for Abe refusing to resign, should global risks spike in the coming weeks, sending the USDJPY below 100, this will change fast and before you know it Abe will be begging to be caught on camera engaging in cold, premeditated bribery just so he can quit before the rug is pulled out from under the Japanese stock market and economy.

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The Most Memorable Signs From Yesterday’s ‘March For Our Lives’ Rally

Demonstrators flooded the streets of Washington, D.C., yesterday following a recent spate of school shootings, and The Daily Caller’s Chris White notes the protesters were carrying signs opposing everything from the Second Amendment to the National Rifle Association to the millions of Americans who own guns.

But, some of the signs were ‘better’ than others.

Activists carried poster boards at March For Our Lives rallies across the country suggesting lawmakers ban guns like they “ban boobs.”

Activists were also distraught that guns supposedly have more rights than their uteruses.

“Guns shouldn’t have more rights than my uterus,” another activist wearing a “Fuck Trump” pin scrawled on a white piece of paper, while another demonstrator held up a sign lamenting what she believes is the U.S.’ lack of background checks: “My Muslim uncle gets more background checks than a gun.”

The rallies come after a Feb. 14 shooting at Marjory Stoneman Douglas High School that killed 17 people.

Others preferred to take their anger out on the NRA and gun owners.

“There’s no such thing as a good guy with a gun,” one rally-goer at the Washington, D.C., march wrote on a sign.

The D.C. rally comes less than a week after a school resource officer used a gun to stop a potential school shooter at a high school in St. Mary’s County, Md.

Survivors of mass shootings, including the one in Florida, rallied a whooping crowd at the D.C. crowd – “Welcome to the revolution,” said one student organizer, who also groused about how gun violence disproportionately affect black communities.

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“Rothschilds & Rockefellers Need To Go Down To Free America…”

Via Greg Hunter’s USAWatchdog blog,

Radio host Dr. Dave Janda says Trump is working on draining the swamp in Washington D.C., but the job is huge and it takes time.

Janda explains,

“Many people have said I haven’t seen anybody put in an orange jump suit and perp walked that is high up on the totem pole.  They are correct when they say that, but that doesn’t mean it’s not going to happen.  That’s not hopium.  I believe it will happen. 

Bob Mazur, former undercover DEA agent who was one of the people responsible for taking down Pablo Escobar and taking down the BCCI Bank, they were laundering drug money.  Bob says when you are taking down a huge organization… this operation was big, but small compared to this globalist swamp that has been created for well over a hundred years.  So, Bob says when you are working on an operation, everybody gets impatient because things aren’t happening fast enough…

In order to bring the whole system down so it doesn’t come back to life down the line, you have to get really high up on the totem pole…

When we are talking about people like the Clintons, Obama, the Bush family and Soros, we are talking about middle-level people.  These are puppets of the globalist syndicate.  These people are in the Rothschild and Rockefeller axis. 

In order for our country to get back on its feet, taking down the Clintons, Obama and Soros is not enough because that creature will come back to life again.  They need to take down the entities above those middle-level players.  That’s what is taking so long.  It might take many more months for that creature to be obliterated.”

Janda, who has well connected Washington D.C sources, says the “Deep State” traitors and felons are worried and cornered. Janda says, “This is not like trying to flip some hard mafia guy…

“…These people are juniors when it comes to being criminals.  Yes, they participated in criminal activity.  They wanted more control and more money, but these people are not hardened criminals.  So, these people will flip in a second, and when they flip, they won’t stop signing.  They will bring as many people they need to bring down to save themselves.  None of these, at this point, can trust each other.  The ultimate goal it is to take this up to a level to take out the Obamas, Clintons, Bush family and Soros, and then apply the necessary pressure to go to the top.”

There is a new report by the Inspector General on the DOJ. It is 1.2 million pages (this is not a typo).  Congress has copies, and it outlines and proves fraud and criminal activity at the FBI and Department of Justice.  It will likely be the foundation that sends many in high office in both departments to jail for their crimes. Radio host Dave Janda says,

“You have to understand what the Inspector General’s report is all about.  The Inspector General’s report is about the restoration of the rule of law in our country that has been missing for decades.  This is why they are so petrified of that report. 

All these players–low, middle and high–took over the system to the point where the rules of justice could be directed toward their opponents and be blinded to their criminal activity.  What scares the living daylights out of this syndicate is the restoration of the rule of law

When there is a full restoration of the rule of law, I believe this is what blows this system apart–this globalist syndicate system.”

Janda also says, “Right now, the good guys are 70% to 80% in control.”

Join Greg Hunter as he talks to Dr. Dave Janda in depth from the Operation Freedom radio show…

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