Category Archives: Finance

Tenth Anniversary Of Financial Collapse, Preparing For The Next Crash

Jail Bankers Not Protesters, Occupy Wall Street, 2011 (Photo by Stan Honda for AFP-Getty Images)

Ten years ago, there was panic in Washington, DC, New York City and financial centers around the world as the United States was in the midst of an economic collapse. The crash became the focus of the presidential campaign between Barack Obama and John McCain and was followed by protests that created a popular movement, which continues to this day.

Banks: Bailed Out; The People: Sold Out

On the campaign trail, in March 2008, Obama blamed mismanagement of the economy on both Democrats and Republicans for rewarding financial manipulation rather than economic productivity. He called for funds to protect homeowners from foreclosure and to stabilize local governments and urged a 21st Century regulation of the financial system. John McCain opposed federal intervention, saying the country should not bail out banks or homeowners who knowingly took financial risks.

By September 2008, McCain and Obama met with President George W. Bush and together they called for a $700 billion bailout of the banks, not the people. Obama and McCain issued a joint statement that called the bank bailout plan “flawed,” but said, “the effort to protect the American economy must not fail.” Obama expressed “outrage” at the “crisis,” which was “a direct result of the greed and irresponsibility that has dominated Washington and Wall Street for years.”

By October 2008, the Troubled Asset Relief Program (TARP), or bank bailout, had recapitalized the banks, the Treasury had stabilized money market mutual funds and the FDIC had guaranteed the bank debts. The Federal Reserve began flowing money to banks, which would ultimately total almost twice the $16 trillion claimed in a federal audit. Researchers at the University of Missouri found that the Federal Reserve gave over $29 trillion to the banks.

This did not stop the loss of nine million jobs, more than four million foreclosures and the deep reduction in wealth among the poor, working and middle classes. A complete banking collapse was averted, but a deep recession for most people was not.

The New Yorker described the 2008 crash as years in the making, writing:

…the crisis took years to emerge. It was caused by reckless lending practices, Wall Street greed, outright fraud, lax government oversight in the George W. Bush years, and deregulation of the financial sector in the Bill Clinton years. The deepest source, going back decades, was rising inequality. In good times and bad, no matter which party held power, the squeezed middle class sank ever further into debt.

Before his inauguration, Obama proposed an economic stimulus plan, but, as Paul Krugman wrote:

Obama’s prescription doesn’t live up to his diagnosis. The economic plan he’s offering isn’t as strong as his language about the economic threat.

In the end, the stimulus was even smaller than what Obama proposed. Economist Dean Baker explained that it may have created 2 million jobs, but we needed 12 million. It was $300 billion in 2009, about the same in 2010, and the remaining $100 billion followed over several years — too small to offset the $1.4 trillion in annual lost spending.

New York Magazine reports the stimulus was “a spending stimulus bigger, by some measures than the entire New Deal.” But unlike the New Deal, which benefited people at the bottom and built a foundation for a long-term economy, the bi-partisan post-2008 stimulus bailed out Wall Street and left Main Street behind.

Wall Street executives were not prosecuted even though the financial crisis was in large part caused by their fraud. Bankers were given fines costing dimes on the dollar without being required to admit guilt or having their cases referred for prosecution. The fines were paid by shareholders, not the perpetrators.

Protest near Union Square in New York, April, 2010. Popular Resistance.

Still at Risk

Many of the root causes of the crisis remain today, making another economic downturn or collapse possible. The New Yorker reports that little has changed since 2008, with Wall Street banks returning to risky behavior and the inadequate regulation of Dodd-Frank being weakened. Big finance is more concentrated and dominant than it was before the crash. Inequality and debt have expanded, and despite the capital class getting wealthier in a record stock market with corporate profits soaring, real wages are stuck at pre-crisis levels.

People are economically insecure in the US and live with growing despair, as measured by reports on well-being. The Federal Reserve reported in 2017 that “two in five Americans don’t have enough savings to cover a $400 emergency expense.” Further, “more than one in five said they weren’t able to pay the current month’s bills in full, and more than one in four said they skipped necessary medical care last year because they couldn’t afford it.”

Positive Money writes:

Ten years on, big banks are still behaving in reckless, unfair and neglectful ways. The structural problems with our money and banking system still haven’t been fixed. And many experts fear that if we don’t change things soon, we’re going to sleepwalk into another crash.

William Cohen, a former mergers and acquisitions banker on Wall Street, writes that the fundamentals of US economy are still flawed. The Economist describes the current situation: “The patient is in remission, not cured.”

From Occupy Washington DC at Freedom Plaza

The Response Of the Popular Movement

Larry Eliott wrote in the Guardian: “Capitalism’s near-death experience with the banking crisis was a golden opportunity for progressives.” But the movement in the United States was not yet in a position to take advantage of it.

There were immediate protests. Democratic Party-aligned groups such as USAction, True Majority and others organized nationwide actions. Over 1,000 people demonstrated on Wall Street and phones in Congress were ringing wildly. While there was opposition to the bailout, there was a lack of national consensus over what to do.

Protests continued to grow. In late 2009, a “Move Your Money” campaign was started that urged people to take their money out of the big banks and put it in community banks and credit unions. The most visible anti-establishment rage in response to the bailout arose later in the Tea Party and Occupy movements. Both groups shared a consensus that we live in a rigged economy created by a corrupt political establishment. It was evident that the US is an oligarchy, which serves the interests of the wealthy while ignoring the necessities of the people.

The anti-establishment consensus continues to grow and showed itself in the 2016 presidential campaigns of Senator Bernie Sanders and Donald Trump. They were two sides of the same coin of populist anger that defeated Jeb Bush and Hillary Clinton. Across the political spectrum, there is a political crisis with both mainstream, Wall Street-funded political parties being unpopular but staying in power due to a calcified political system that protects the duopoly of Democrats and Republicans.

Occupy Wall Street 2011

Preparing for the Next Collapse

When the next financial crisis arrives, the movement is in a much stronger position to take advantage of the opportunity for significant changes that benefit people over Wall Street. The Occupy movement and other efforts since then have changed the national dialogue so that more people are aware of wealth inequality, the corruption of big banks and the failure of the political elites to represent the people’s interests.

There is also greater awareness of alternatives to the current economy. The Public Banking movement has grown significantly since 2008. Banks that need to be bailed out could be transformed into public banks that serve the people and are democratically controlled. And there are multiple platforms, including our People’s Agenda, that outline alternative solutions.

We also know the government can afford almost $30 trillion to bail out the banks. One sixth of this could provide a $12,000 annual basic income, which would cost $3.8 trillion annually, doubling Social Security payments to $22,000 annually, which would cost $662 billion, a $10,000 bonus for all US public school teachers, which would cost $11 billion, free college for all high school graduates, which would cost $318 billion, and universal preschool, which would cost $38 billion. National improved Medicare for all would actually save the nation trillions of dollars over a decade. We can afford to provide for the necessities of the people.

We can look to Iceland for an example of how to handle the next crisis. In 2008, they jailed the bankers, let the banks fail without taking on their debt and put controls in place to protect the economy. They recovered more quickly than other countries and with less pain.

How did they do it? In part, through protest. They held sustained and noisy protests, banging pots and pans outside their parliament building for five months. The number of people participating in the protests grew over time. They created democratized platforms for gathering public input and sharing information widely. And they created new political parties, the Pirate Party and the Best Party, which offered agendas informed by that popular input.

So, when the next crash comes. Let’s put forward a People’s Agenda. Let’s be like Iceland and mobilize for policies that put people first. Collectively, we have the power to overcome the political elites and their donor class.

Trump Takes on the Fed

The president has criticized Federal Reserve policy for undermining his attempts to build the economy. To make the central bank serve the needs of the economy, it needs to be transformed into a public utility.

For nearly half a century, presidents have refrained from criticizing the “independent” Federal Reserve; but that was before Donald Trump. In response to a question about Fed interest rate policy in a CNBC interview on July 19, 2018, he shocked commentators by stating,

I’m not thrilled.  Because we go up and every time you go up they want to raise rates again. … I am not happy about it.  … I don’t like all of this work that we’re putting into the economy and then I see rates going up.

He acknowledged the central bank’s independence, but the point was made: the Fed was hurting the economy with its “Quantitative Tightening” policies and needed to watch its step.

In commentary on CNBC.com, Richard Bove contended that the president was positioning himself to take control of the Federal Reserve. Bove said Trump will do it “both because he can and because his broader policies argue that he should do so. . . . By raising interest rates and stopping the growth in the money supply [the Fed] stands in the way of further growth in the American economy.”

Bove noted that in the second quarter of 2018, the growth in the money supply (M2) was zero. Why? He blamed “the tightest monetary policy since Paul Volcker, whose policies in the mid-1980s led to back-to-back recessions.” The Fed has raised interest rates seven times, with five more scheduled, while it is shrinking its balance sheet by $40 billion per month, soon to be $50 billion per month.

How could the president take control? Bove explained:

The Board of Governors of the Federal Reserve is required to have seven members. It has three. Two of the current governors were put into their position by President Trump. Two more have been nominated by the president and are awaiting confirmation by the Senate. After these two are put on the Fed’s board, the president will then nominate two more to follow them. In essence, it is possible that six of the seven Board members will be put in place by Trump.

Those seven, along with five federal district bank presidents, compose the Federal Open Market Committee, which sets monetary policy; and one of those district bank presidents, Minnesota Fed head Neel Kashkari, is already arguing against further rate increases. Bove concluded:

The president can and will take control of the Fed. It may be recalled when the law was written creating the Federal Reserve the secretary of the Treasury was designated as the head of the Federal Reserve. We are going to return to that era.

Returning the Fed to Treasury control, however, means more than appointing new Board members. It means “nationalizing” the central bank, making it a public utility responsive to the needs of the public and the economy. And that means modifying the Federal Reserve Act to change the Fed’s mandate and tools.

The Controversial History of Central Bank Independence

Ever since the 1970s, the Fed and other central banks have insisted on their independence from political control. But according to Timothy Canova, Professor of Law and Public Finance at Nova Southeastern University, independence has really come to mean a central bank that has been captured by very large banking interests. It might be independent of oversight by politicians, but it is not a neutral arbiter. This has not always been the case. During the period coming out of the Great Depression, says Canova, the Fed as a practical matter was not independent but took its marching orders from the White House and the Treasury; and that period was the most successful in American economic history.

According to Bernard Lietaer, a former Belgian central banker who has written extensively on monetary innovation, the real job of central bankers today is to serve the banking system by keeping the debt machine going. He writes:

[W]e can produce more than enough food to feed everybody, and there is definitely enough work for everybody in the world, but there is clearly not enough money to pay for it all. The scarcity is in our national currencies. In fact, the job of central banks is to create and maintain that currency scarcity. The direct consequence is that we have to fight with each other in order to survive.

The rationale for central bank independence dates back to a bout in the 1970s of “stagflation” – rapidly rising prices along with stagnant productivity. The inflation surges were blamed on political pressure put on Fed Chairman Arthur Burns by the Nixon administration to follow easy-money policies. But the link between easy-money policies and inflation is not at all clear. The Japanese have had near-zero interest rates for two decades and cannot generate price inflation although they are trying to. An alternative explanation for the rising prices of the 1970s is that producers’ costs had gone up, largely from increased labor costs due to the strong bargaining power of unions and the skyrocketing cost of oil from an engineered 1973-74 oil crisis.

Fed policy nevertheless remains stuck on the “Quantity Theory of Money,” which says that increasing the money in the system will decrease the value of the currency, driving up prices. The theory omits the supply factor. As long as workers and materials are available, increasing “demand” (money) can generate the supply needed to meet that demand. Supply and demand increase together and prices remain stable. And while the speculative economy may be awash in money, today the local productive economy is suffering from a lack of demand. Consumers are short of funds and heavily in debt. Moreover, plenty of workers are available to generate the supply needed to meet any new demand (injection of money). According to John Williams at ShadowStats.com, the real unemployment figure as of April 2018, including long-term discouraged workers who were defined out of official existence in 1994, was 21.5 percent. Beyond that is the expanding labor potential of robots and computers. A vast workforce is thus available to fill the gap between supply and demand, allowing new money to be added to the productive economy.

But the Fed insists on “sterilizing” every purported effort to stimulate demand, by making sure the new money never gets into the real economy. The money produced through quantitative easing remains trapped on bank balance sheets, where the Fed pays interest on excess reserves, killing any incentive for the banks to lend even to other banks; and the central bank has now begun systematically returning even that money to its own balance sheet.

The High Price of Challenging the Fed

An article in The Economist on July 28, 2018, contends that Nixon was pressuring the Fed to make the economy look good for political purposes, and that Trump is following suit. But there is more to the Nixon story. In a 2010 book titled The American Caliphate, R. Duane Willing says the Nixon White House had quietly drafted and sponsored a Federal Charter Bill that would have changed U.S. financial history. Willing worked for the Federal Home Loan Bank Board during the Nixon era and was tasked with defining the system requirements that would make a central computerized checking account and loan system available to the new banking system. He writes:

Only John Kennedy and Abraham Lincoln and two other assassinated presidents, James Garfield and William McKinley, prior to Nixon, had actively contemplated changes of such magnitude in the U.S. financial system.

President Garfield observed that “whoever controls the volume of money in our country is absolute master of all industry and commerce . . . and when you realize that the entire money system is very easily controlled, one way or another by a few powerful men, you will not have to be told how periods of inflation and depression originate.”

. . . The hidden secret since the beginning of modern capitalism is that money is created and managed by bank control over checking accounts in the loan-making process.

Willing says Nixon was preparing the Federal Home Loan Bank Board to change the traditional role of American savings and loan associations, giving them money creation powers like the big Wall Street banks had, providing a full-service nationwide banking system. The national money supply would thus be regulated according to needs at the local level rather than dictated from the top by the central bank.  The proposed legislation provided for a separate central bank to backstop local credit unions and a much greater degree of competition for a wide array of financial services.

But Nixon’s plan for national finance, along with his plan for healthcare and a guaranteed income, alarmed the Wall Street/Federal Reserve power block, which Willing says was about to be challenged like never before. Nixon was obviously not blameless in the Watergate scandal, but Willing contends it was pushed by “the Wall Street Great Merchants as owners of the Senate,” who “were making certain that the money dreams of ‘Tricky Dick’ and his vision for the Republic protected with a network of converted Savings and Loan associations was doomed.”

An “Independent” Central Bank or a Public Central Bank?

Challenging the Fed is thus risky business, and the president should be given credit for taking it on. But if he is planning to change the makeup of the Federal Reserve Board, he needs to appoint people who understand that the way to jump-start the economy is to inject new money directly into it, not keep the money “sterilized” in fake injections that trap it on bank balance sheets until it can be reeled back in by the central bank. Interesting proposals for how the Fed could inject new money into the economy include making direct loans for infrastructure (as the Chinese central bank is doing), making low- or no-interest loans to state and local governments for infrastructure, or refinancing the federal debt interest-free.

Better than changing who is at the helm of the central bank would be to change the rules governing it, something only Congress can do. Putting the needs of the American people first, as Trump promised in his campaign speeches, means making the Fed serve Main Street rather than Wall Street.

• A previous version of this article was published at Truthdig.com

The Underworld of Banksters

The financial industry is but one of many industries in the modern world. Besides whatever their stated purposes may be, every one of their modus operandi can be “unmasked” to reveal some degree and form of wrongdoing and harm done, as I did once in a very cursory way.1

One of those industries, the financial industry, is comprised of numerous sectors such as the insurance industry, for instance. I have written about how it along with its government ally are financially soaking the public.2 This present article burrows into another sector, what I call the industry’s “underworld of banksters.” A bankster is a bank or banker that relies on illegal or unethical wrongdoing in their financial dealings. The wrongdoing to be found in their underworld is monumental and incalculable in size and harm done.

Hijacking a Public Domain

Permit me to issue and control a nation’s money and I care not who makes the laws.

— Mayer Amschel Rothschild3

Mayer Amschel Rothschild was a German banker and the “founding father of international finance” that grew into the Rothschild banking dynasty that still exists today in full force, with ownership or control of banks in over 150 countries.4 In 2005 he was ranked seventh on the Forbes’ magazine list of “The Twenty Most Influential Businessmen of All Time.”5

Forbes, naturally, did not characterize him as a bankster of the financial underworld, but we can judge whether that is so just from the above quote. In its first clause he says he would like to privatize what should be in the public domain, namely, the exchange of money for goods and services, an exchange essential to any society’s existence. In its second clause he is saying exactly what would be expected of a bankster.

Bankrolling Wars

All wars are banksters’ wars!

The Rothschild banking dynasty has bankrolled “war operations for the past several centuries.”6  And they bankrolled both sides!7  And why not? Why would they care so long as they profited from the bloodshed? Mayer Rothschild’s wife reportedly quipped on her deathbed “If my sons did not want wars, there would be none.”8 Such was the power of her five sons sent by their father to establish banks in five countries. I don’t think there is any evidence to show that they did not want wars.

The banksters do not wait for wars to just happen, they help get them started and then bankroll them for munificent profits. For instance, President Woodrow Wilson promised to keep the U.S. out of WWI, but the Morgan Bank, then the most powerful bank, nudged him into declaring war and then promptly bankrolled over 75 percent of the financing for the allied forces.9  Behind US involvement in more recent wars was the banksters’ intention of enfolding all countries into a Western, private central banking powerhouse.10

Woodrow Wilson was hardly the only captive U.S. president. A knowledgeable insider once examined archives of U.S. presidents for over a century and discovered that banksters were “in constant communication with the White House — not just about financial and economic policy, and by extension trade policy, but also about aspects of World War I, or World War II, or the Cold War.”10 U.S. presidents obviously listen when the banksters come calling!

Besides its full war operations, declared or undeclared, the U.S. government officially approves millions of dollars to fund terrorist groups.11 It should come as no surprise, therefore, that the banksters unofficially milk the fund. Successfully suing them on behalf of families of U.S. military members slain by the funded terrorists seems to be an insurmountable hurdle, especially when the banksters being sued were a conduit to other banks that did the funding. But indirect funding should be irrelevant, as one of the lawyers who filed the lawsuit observed; “Does it matter whether a particular bank was the physical conduit of the transfers to the terror apparatus, or is it enough that they were in a conspiracy which made that possible, and that they were, as a legal matter, deliberately indifferent to that result?”12  Well, Mr. Lawyer, you are dealing with the banksters, whether first hand or second hand.

Banksters are also profiting from and preparing for the ultimate war, a nuclear blowout. PAX recently issued a report on its findings from January 2014 through October 2017 that showed “329 banks, insurance companies, pension funds and asset managers from 24 countries that invest significantly in the top 20 nuclear weapon producers.”13  If blowback gets the banksters nuked that would be poetic justice, but it is not something to wish for since the fallout would engulf everyone else as well.

Arranging Assassinations

Befitting Mafia hit men, banksters have been suspected of arranging the assassinations of several U.S. presidents, a member of Congress and a Justice, all of whom dared defy the banksters: Andrew Jackson (attempt failed), Zaccary Taylor, James Buchannan (survived arsenic poisoning), Abraham Lincoln, James Garfield, William McKinley, Louis T. McFadden (a member of the House of Representatives in the twenties and thirties), Justice Martin V. Mahoney, and John F. Kennedy.14

Banksters are cunning enough to arrange for perfect murders, ones that will never be solved in a court of law. Each of the assassinated had with their policy decisions angered the banksters, a strong enough reason to suspect their complicity in the murders. In each case the banksters undoubtedly had foils with their own grievances against their targets do the assassinating. This account obviously amounts to conspiracy theorizing, yet there may be some truth to it. For instance, one author claims in his book that “persuasive evidence suggested that Lincoln’s assassin, John Wilkes Booth, had been hired for the job by Judah Benjamin, Treasurer of the Confederacy. Judah Benjamin was a close associate of Benjamin Disraeli (1804-1881), British Prime Minister and an intimate of the London Rothschilds.15  As time rolls on and with more digging the theory may start looking more like reality.

Bankrupting America

When America Suffers, the Banksters Thrive

There have been three major economic calamities in America’s history. The first and third were geographically widespread in scope. The first is known as the Great Depression that occurred from 1929 to 1939. The third that started around 2008 and has never ended is generally referred to as The Second Great Depression, although I named it Economic Katrina after the second, a localized calamity, Hurricane Katrina, that devastated the New Orleans area in 2005.16 The banksters, of course, were behind all three of these calamities.

The Great Depression

Poor Americans were devastated by this economic meltdown. Unemployment soared. Home foreclosures soared. Homelessness soared. The suicide rate soared. Repossessions soared. I was a little boy in the second half of this meltdown and recall how my parents struggled to make ends meet. Since my father held onto his job, my mother’s job was given to someone without a job. Yet, as a lower middle-class family, we fared much better than did millions of Americans.

So too, needless to say, did the wealthy, and that included, of course, the banksters, not to be confused with the thousands of small bankers whose banks folded. The mysteriously poisoned Congressman Louis McFadden had contended shortly before his death that the Great Depression “was no accident. It was a carefully contrived occurrence. The international bankers sought to bring about a condition of despair, so they might emerge as rulers of us all.”17

Hurricane Katrina

Hurricane Katrina was reportedly the costliest natural disaster to hit America. To Naomi Klein, author of The Shock Doctrine, hurricane Katrina was an example of how commercial interests such as the banksters swoop down in an “orchestrated raid” to capitalize on new market opportunities.18 The banksters themselves obviously window dress their role in the disaster, as exemplified in this remark by a spokesperson for one of the bank members of the Federal Reserve Board, which is a citadel for the really big banksters; “resourceful banks have designed creative ways to resume business, incorporating “flexibility” and “customization” into their vocabulary, engaging in recovery area investment projects and forming alliances with community partners.”19  That quote is sheer PR. No bankster, of course, other than anyone like a Mayer Rothschild, would boast about turning any disasters to others into bonanzas for themselves.

The Second Great Depression

America has never recovered from this third calamity that in 2008 started sweeping away main street and keeping the banksters and Wall Street high and dry, for the most part through unconscionable and astronomical government bailouts. After doing extensive research on the matter, I have concluded that there is one single, pivotal event that triggered this economic calamity, and I see that at least one Wall Street insider agrees with me.20 That event was the repeal of the Glass-Steagall Act that had prevented banks from operating both regular commercial loans and investments. The banksters gradually were able through lobbying and arm twisting to puncture some loopholes into the law, and then in 1994 the Act was replaced by one that allowed a bank to do both forms of business. The new law led to the creation of megabanks, but because they got greedy and careless with their selling of securities they suffered a financial setback of their own making but still had enough influence to get bailed out by government. It was simply a quid pro deal. One dirty hand washes the other. Or Napoleon Bonaparte would have put it differently; “When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes.”21

A Line Up of the Banksters

(a) Bank for International Settlement

Before doing the research for this article I had never heard of BIS. Now I know it is the most powerful private central bank in the world with the avowed aim of coordinating and controlling all monetary activities in the industrialized world and indebting it to the International Monetary Fund (a member of the Unholy Trinity to be discussed shortly). It was established in 1930 by bankers and diplomats of Europe and the United States to collect and disburse Germany’s World War I reparation payments. In WWII the BIS was used to launder money for the Nazis.22  As you can see, the BIS is not a wholesome bank to say the least.

(b) The Unholy Trinity

This well-deserved nickname refers to the International Monetary Fund (IMF), the World Bank (WB), and the World Trade Organization (WTO).23  They became the primary enabler of the globalization of the world’s money.

The trios’ purpose ostensibly from the beginning has been to reduce poverty and to develop the economies of Third World countries. In reality the aim of its work has been totally different, very “unholy.” Huge amounts of money masquerading as developmental loans and contingent on the currency devaluation and paring of the borrowing country’s social programs are siphoned off to huge, transnational corporations, many of which are U.S. firms, and the pockets of the governing and power elite of the country. The country goes further into debt and becomes even more vulnerable to being further exploited, including being subjected to sham debt relief programs.

No matter where on the globe the exploitation takes place there is a similar pattern of corporate/bankster behavior involved that includes such despicable, inhumane practices as relying on militaries and militias to purchase commodities made by forced labor; using armed groups to protect corporate assets; supplying arms to rebel and government forces; actually participating in military actions; engaging in smuggling, money laundering, and illegal currency transactions; and sweat-shop production of goods.24

(c) The Federal Reserve Board

The Fed is America’s banksters’ subordinate counterpart to the BIS and the Unholy Trinity.

A cabal of banksters got together in 1913 at the idyllic Jekyll Island resort off the coast of Georgia (where my family has stayed several times, not knowing we may have slept in banksters’ bedrooms). They coyly added the adjective “Federal” to disguise the intent, since twice before efforts to establish similar controlling banks had failed.17

As you may know, the Fed is made up of 12 branches around the country. All 12 and the headquarters are owned by 10 mega banks, four of which are headquartered in the U.S. As you might suspect, two of the owners are Rothschild banks, one in London and one in Berlin. About 100 very powerful individuals own those banks and thus also own the Fed. It is, therefore, no more a “Federal” agency of the government than is “Federal” Express. Being a private entity, one would expect the government would tax it. Not so, the Fed only pays property tax.17

Remember my including U. S. Congress Representative Louis T. McFadden as one of the likely victims of an arranged assassination? At the time he was Chairman of the Committee on Banking and Currency. Here is what he said that angered the banksters; “The Federal Reserve Board has cheated the Government of the United States and the people of the United States out of enough money to pay the national debt. Our people’s money, to the tune of $1,200,000,000, has within the last few months been shipped abroad to redeem Federal Reserve Notes and to pay other gambling debts of the traitorous Federal Reserve Board and the Federal Reserve Banks.”17  Today’s Fed is no less of an abominable bankster.

(d) Mega Banksters at Home

These mega banksters in the U.S. have assets totaling trillions of dollars. They didn’t get these assets through socially responsible investments to help the common good. They got them through bankrolling wars, through bankrupting the U.S. economy with fraudulent subprime securities that plummeted the U.S. into its Second Great Depression, and through all sorts of other ways to fleece the public out of its money. Put simply, these mega banksters are criminals on the loose throughout the country.

The Medium

Bad Capitalism

People, banksters included, do not depend only on themselves to go from birth to death. They must also depend on the circumstances and situations they encounter and sometimes help create. These circumstances and situations are the medium of life.  Bad capitalism is the banksters’ medium. Without it there would be no underworld of banksters.

Adam Smith, the putative “father of capitalism,” was a moral philosopher. He understood the importance of morality and the difference between good and bad capitalism and thought the emerging corporations of his time posed threats emanating from their unlimited life span; unlimited size; unlimited power; and unlimited license.25  How prescient he was!

I have written copiously about good and bad capitalism and have presented a plethora of my own as well as others’ proposals to turn bad capitalism into good capitalism.26 They have all come to naught. The banksters would guffaw if they read my work.

Public Banking to the Rescue?

Since the banksters made America’s public money private it stands to reason that a straightforward solution to ridding America of the banksters or at least curtailing them would be to establish a network of public banks throughout America. That is precisely what Ellen Brown, President and Chair of the Public Banking Institute is trying to accomplish. Through her stature and persuasive skills, she managed to get published in the OpEd section of the establishment paper, New York Times, no less, a piece promoting public banking.27 Her efforts are quite commendable and worth following.

Two additional strategies I should think would be to abolish the Fed and replace it with a truly Federal Reserve of Public Banks, and to prosecute and jail banksters instead of looking the other way or giving them token fines. Doing all this would take a herculean political effort, and I don’t expect it will ever happen.

Conclusion

A two-sentence conclusion ought to be enough. One, the banksters control most of the world’s money and will stop nothing short of fueling wars and creating economic havoc to keep growing their money and control. Two, commercializing peace or commercializing war — never the first, daily routine the second.

Acknowledgments

Wrongdoing is like mushrooms, thriving in the dark. The Fed shrouds itself in secrecy. In 2012, the Fed attempted to rebuff a Freedom of Information Lawsuit by Bloomberg News claiming that as a private banking corporation and not actually a part of the government, the Freedom of Information Act did not apply to the “trade secret” operations of the Fed.17

It is basically through the alternative media that we learn about the Fed’s secret dealings and its adverse impact on society at large. It was an article from the alternative media, for example, that told us the Fed is ruining our economic future because it caters to itself and the rest of the banksters.28  People drawn to the alternative media should rightly be fed up with the Fed.

As the author of this article who relied so heavily on one individual’s trailblazing efforts to dig up the facts that the government withholds, I must acknowledge Michael Rivero, who dominates my list of footnotes. He is my Internet friend of yesteryear. Without his efforts I could not have written this article. It was his quote, “Behind all wars are bankers” that I cited in one of my books. It was only after rereading one of my book reviews about corporate gangs, which ironically had little to say about banking, that I conceived the opprobrious “banksters.”29

  1. Brumback, GB. “Corporate America Unmasked“, The Greanville Post, January 3; OpEdNews, January 4; Dissident Voice, January 4; Uncommon Thought Journal, January 7, 2018
  2. Brumback, GB. Soaking the Public: The Insurance Industry and Captive Government, OpEdNews, July 11; Dissident Voice, July 12; 2016.
  3. Lendman, S. Banker Occupation: Waging Financial War on Humanity, Clarity Press, Inc., 2012.
  4. See: Complete List of BANKS Owned or Controlled by the Rothschild Family.
  5. Noer, M. “The Twenty Most Influential Businessmen of All Time”, Forbes, July 29, 2005.
  6. Dmitry, B. “Rothschild Wealth Is Now Greater Than 75% Of World Population Combined,” January 21, 2017.
  7. USWGO. The Rothschild Dynasty Funded Both Sides of Every War, USWGO, March 14, 2011.
  8. Collier, A. “Perspective on the World”, March 7, 2014.
  9. Washington Blog. “Bankers are Behind the Wars“, April 18, 2014.
  10. Ibid.
  11. Khabieh, B. “Obama Approves $800m Funding for Terrorist Groups in Syria and Ukraine”, Reuters, November 28, 2015.
  12. Profess, B. & Clifford, S. “Suit Accuses Banks of Role in Financing Terror Attacks”, The New York Times, November 10, 2014.
  13. Beenes, M. & Snyder, S. “Don’t Bank on the Bomb, A Global Report on the Financing of Nuclear Weapons Producers”, PAX, March, 2018.
  14. Rivero, M. “All Wars are Bankers’ Wars“.  See also, pik_artist, “Judge Poisoned After Ruling Bank Forclosure Is Illegal and All Mortgages Are Null and Void, Hub Pages, January 17, 2018.
  15. Engdahl, WF. Gods of Money: Wall Street and the Death of the American Century, 2009.
  16. Brumback, GB. The Devil’s Marriage: Break Up the Corpocracy or Leave Democracy in the Lurch, 2011, pp. 151-152.
  17. Rivero, Op. Cit.
  18. Klein, N. The Shock Doctrine: The Rise of Disaster Capitalism. 2007.
  19. Owens, D. “After the Storm: Banks Respond to Katrina’s Punch”, Federal Reserve Bank of St. Louis, Spring, 2006.
  20. Rickards, J. “Repeal of Glass-Steagall Caused the Financial Crisis”, U.S. News and World Report, August. 27, 2012.
  21. Rivero, OpCit.
  22. Epstein, E.J. “Ruling the World of Money”, Harper’s Magazine, 1983.
  23. Peet, R. Unholy Trinity: The IMF, World Bank and WTO, 2009 (Second Edition).
  24. For more on the Unholy Trinity and the globalization of the world’s economy see John Perkins’ riveting book, Confessions of an Economic Hit Man, 2004, and my review of it in Personnel Psychology, Vol. 59, No. 2-Summer, 2006, Book Review Section, pp. 489-493.
  25. Smith, A. The Wealth of Nations, 1776.
  26. See Brumback, Op. Cit. 2011; and also, Brumback, GB. Corporate Reckoning Ahead, 2015.
  27. Brown, E. “Public Banks Are Essential to Capitalism”, NYTimes Op Ed, October 2, 2013.
  28. Parramore. LS. “How the Federal Reserve is Destroying Your Economic Future”, Alternet, April 16, 2015.
  29. Nace, T. Gangs of America: The Rise of Corporate Power and the Disabling of Democracy, 2003. I reviewed this book in the 2004 Fall Issue of the Book Review Section of Personnel Psychology, pp. 780-783.

Plunder Down Under: The Rot in Australia’s Financial Services

It has all the elements of a crudely crafted, if effective, tale: banks and other financial services, founded, proud of their standing in society; financial service providers, with such pride, effectively charging the earth for providing elementary services; then, such entities, with self-assumed omnipotence, cheating, extorting and plundering their clients.

This is the scene in Australia, a country where the bankster and financial con artist have been enthroned for some time, worshipped as fictional job creators and wealth managers for the economy.  Impunity was more or less guaranteed.  All that might be expected would be the odd sacking here and there, the odd removal, the odd fine and limp slap of the wrist. But then came along something the Australian government never wanted: a Royal Commission.

While Commissioner Kenneth Hayne’s Royal Commission into the Banking, Superannuation and Financial Services industry initially promised to be a fizzer, one that risked being stage managed into oblivion by a conservative former High Court justice, the contrary has transpired.  Even in its infancy, it has produced a string of revelations that have sent the financial establishment, and those supporting them, into apoplectic worry.

The Turnbull government, long steadfast in treating Australia’s banking and financial sector like a golden calf, has found itself encircled by misjudgement and error.  Former front bencher Barnaby Joyce had to concede error in arguing against a Royal Commission into the sector. “I was wrong.  What I have heard is [sic] so far is beyond disturbing.”

Ministers have been more mealy-mouthed, in particular Revenue Minister Kelly O’Dwyer who has given a string of performances featuring stellar denial and evasion. “Initially,” she told the ABC last Thursday, “the Government said that it didn’t feel that there was enough need for a royal commission.  And we re-evaluated our position and we introduced one.”

Such a view ignores a strain of deep anti-banking suspicion within some conservative circles – notably of the agrarian populist persuasion.  The National rebels George Christensen, Llew O’Brien and Barry O’Sullivan were repeatedly noisy on the subject.  (The unregulated free market sits uneasily with them.)

The undergrowth of abuse has proven extensive and thorny.  Clients, for instance, have been charged services they were never supplied; monitoring systems to ensure that such services were, in fact, being provided, have been absent.  Not even the dead have been spared, with the Commonwealth Bank’s financial business wing knowingly charging fees of the departed.

One revelatory report stretching back to 2012 from Deloitte found the Commonwealth Bank of Australia (CBA) particularly egregious on this score.  According to the authors, 1,050 clients were overcharged to the hefty tune of $700,000 for advice never received, as their financial planners had left the business prior to 2012.

At times, the hearings have made for riveting viewing.  Commissioner Hayne found himself in the position of reproaching Marianne Perkovic, head of the CBA’s private bank some three times for hedging responses to Michael Hodge, QC, senior counsel assisting the commission.  “You will get on better if you listen to counsel’s question – if you have to stop and think about the question do it – but listen to counsel’s question and answer what you’re asked.”

Perkovic had remained oblique on the issue of the CBA’s foot dragging – some two years of it, in fact – regarding a failure to inform the Australian Services & Investment Commission (ASIC) on why it did not supply an annual review to financial advice clients of Commonwealth Financial Planning.

Scalps are being gathered; possible jail terms are being suggested; promises of share holder revolts are being made.  The most notable of late has been AMP, whose board, after the resignation of chief executive Craig Meller risk a revolt from shareholders at a meeting on May 10.  “At this stage,” announced Australian Council of Superannuation Investors CEO Louise Davidson, “we are thinking of voting against the re-election of the directors.”

This is not the view of Institutional Shareholder Services, a proxy firm that maintains the front that caution should be exercised in favour of the three directors in question. Stick by Holly Kramer, Vanessa Wallace and Andrew Harmos – for the moment.

“Given that the Royal Commission is in its early stages,” go the dousing words of the ISS report, “and although information presented thus far would be of concern, it is considered that shareholders may in due course review the findings of the Royal Commission, once presented, and any implications for their votes on directors at the appropriate time.”

It is precisely such attitudes of disbelief, caution and faith that have governed Australia’s financial sector during the course of a religiously praised period of uninterrupted growth.  AMP’s value has been dramatically diminished, losing $4 billion from its market capitalisation.  In naked terms, this constitutes a loss of 24 percent of shareholder value over the course of six weeks. But that is merely one component of this financial nightmare, which has stimulated a certain vengeful nature on the part of shareholders.

What, then, with solutions?  The regulator suggests greater oversight; the legislator suggests more rigid laws of vigilance.  The penologist wishes to see the prisons filled with more white collar criminals.  Yet all in all, Australia’s financial service culture has been characterised by shyness and reluctance on the part of ASIC to force the issue and hold rapacity to account.  Central to such a world is a remorseless drive for profit, one that resists government prying and notions of the public good.

One suggestion with merit has been floated.  It lies deep within structural considerations that will require a return to more traditional operations, ones untainted by the advisory arm of the financial industry.

“Financial institutions,” suggests Allan Fels, former chairman of the Australian Competition and Consumer Commission, “must be forced to sell their advisory businesses.  This will remove the unmanageable conflict of interest inherent in banks creating investment products while employing advisers to give purportedly independent recommendations to consumers about their investments.” Now that would be radical.

Fox in the Hen House: Why Interest Rates Are Rising

The Fed is aggressively raising interest rates, although inflation is contained, private debt is already at 150% of GDP, and rising variable rates could push borrowers into insolvency. So what is driving the Fed’s push to “tighten”?

On March 31st the Federal Reserve raised its benchmark interest rate for the sixth time in 3 years and signaled its intention to raise rates twice more in 2018, aiming for a fed funds target of 3.5% by 2020. LIBOR (the London Interbank Offered Rate) has risen even faster than the fed funds rate, up to 2.3% from just 0.3% 2-1/2 years ago. LIBOR is set in London by private agreement of the biggest banks, and the interest on $3.5 trillion globally is linked to it, including $1.2 trillion in consumer mortgages.

Alarmed commentators warn that global debt levels have reached $233 trillion, more than three times global GDP; and that much of that debt is at variable rates pegged either to the Fed’s interbank lending rate or to LIBOR. Raising rates further could push governments, businesses and homeowners over the edge. In its Global Financial Stability report in April 2017, the International Monetary Fund warned that projected interest rises could throw 22% of US corporations into default.

Then there is the US federal debt, which has more than doubled since the 2008 financial crisis, shooting up from $9.4 trillion in mid-2008 to over $21 trillion in April 2018. Adding to that debt burden, the Fed has announced that it will be dumping its government bonds acquired through quantitative easing at the rate of $600 billion annually. It will sell $2.7 trillion in federal securities at the rate of $50 billion monthly beginning in October. Along with a government budget deficit of $1.2 trillion, that’s nearly $2 trillion in new government debt that will need financing annually.

If the Fed follows through with its plans, projections are that by 2027, US taxpayers will owe $1 trillion annually just in interest on the federal debt. That is enough to fund President Trump’s original trillion dollar infrastructure plan every year. And it is a direct transfer of wealth from the middle class to the wealthy investors holding most of the bonds. Where will this money come from? Even crippling taxes, wholesale privatization of public assets, and elimination of social services will not cover the bill.

With so much at stake, why is the Fed increasing interest rates and adding to government debt levels? Its proffered justifications don’t pass the smell test.

“Faith-Based” Monetary Policy

In setting interest rates, the Fed relies on a policy tool called the “Phillips curve,” which allegedly shows that as the economy nears full employment, prices rise. The presumption is that workers with good job prospects will demand higher wages, driving prices up. But the Phillips curve has proven virtually useless in predicting inflation, according to the Fed’s own data. Former Fed Chairman Janet Yellen has admitted that the data fails to support the thesis, and so has Fed Governor Lael Brainard. Minneapolis Fed President Neel Kashkari calls the continued reliance on the Phillips curve “faith-based” monetary policy. But the Federal Open Market Committee (FOMC), which sets monetary policy, is undeterred.

“Full employment” is considered to be 4.7% unemployment. When unemployment drops below that, alarm bells sound and the Fed marches into action. The official unemployment figure ignores the great mass of discouraged unemployed who are no longer looking for work, and it includes people working part-time or well below capacity. But the Fed follows models and numbers, and as of April 2018, the official unemployment rate had dropped to 4.3%. Based on its Phillips curve projections, the FOMC is therefore taking steps to aggressively tighten the money supply.

The notion that shrinking the money supply will prevent inflation is based on another controversial model, the monetarist dictum that “inflation is always and everywhere a monetary phenomenon”: inflation is always caused by “too much money chasing too few goods.” That can happen, and it is called “demand-pull” inflation. But much more common historically is “cost-push” inflation: prices go up because producers’ costs go up. And a major producer cost is the cost of borrowing money. Merchants and manufacturers must borrow in order to pay wages before their products are sold, to build factories, buy equipment and expand. Rather than lowering price inflation, the predictable result of increased interest rates will be to drive consumer prices up, slowing markets and increasing unemployment – another Great Recession. Increasing interest rates is supposed to cool an “overheated” economy by slowing loan growth, but lending is not growing today. Economist Steve Keen has shown that at about 150% private debt to GDP, countries and their populations do not take on more debt. Rather, they pay down their debts, contracting the money supply; and that is where we are now.

The Fed’s reliance on the Phillips curve does not withstand scrutiny. But rather than abandoning the model, the Fed cites “transitory factors” to explain away inconsistencies in the data. In a December 2017 article in The Hill, Tate Lacey observed that the Fed has been using this excuse ever since 2012, citing one “transitory factor” after another, from temporary movements in oil prices, to declining import prices and dollar strength, to falling energy prices, to changes in wireless plans and prescription drugs. The excuse is wearing thin.

The Fed also claims that the effects of its monetary policies lag behind the reported data, making the current rate hikes necessary to prevent problems in the future. But as Lacey observes, GDP is not a lagging indicator, and it shows that the Fed’s policy is failing. Over the last two years, leading up to and continuing through the Fed’s tightening cycle, nominal GDP growth averaged just over 3%; while in the two prior years, nominal GDP grew at more than 4%. Thus “the most reliable indicator of the stance of monetary policy, nominal GDP, is already showing the contractionary impact of the Fed’s policy decisions,” says Lacey, “signaling that its plan will result in further monetary tightening, or worse, even recession.”

Follow the Money

If the Phillips curve, the inflation rate and loan growth don’t explain the push for higher interest rates, what does? The answer was suggested in an April 12th Bloomberg article by Yalman Onaran, titled “Surging LIBOR, Once a Red Flag, Is Now a Cash Machine for Banks.”  He wrote:

The largest U.S. lenders could each make at least $1 billion in additional pretax profit in 2018 from a jump in the London interbank offered rate for dollars, based on data disclosed by the companies. That’s because customers who take out loans are forced to pay more as Libor rises while the banks’ own cost of credit has mostly held steady.

During the 2008 crisis, high LIBOR rates meant capital markets were frozen, since the banks’ borrowing rates were too high for them to turn a profit. But US banks are not dependent on the short-term overseas markets the way they were a decade ago. They are funding much of their operations through deposits, and the average rate paid by the largest US banks on their deposits climbed only about 0.1% last year, despite a 0.75% rise in the fed funds rate. Most banks don’t reveal how much of their lending is at variable rates or is indexed to LIBOR, but Oneran comments:

JPMorgan Chase & Co., the biggest U.S. bank, said in its 2017 annual report that $122 billion of wholesale loans were at variable rates. Assuming those were all indexed to Libor, the 1.19 percentage-point increase in the rate in the past year would mean $1.45 billion in additional income.

Raising the fed funds rate can be the same sort of cash cow for US banks. According to a December 2016 Wall Street Journal article titled “Banks’ Interest-Rate Dreams Coming True”:

While struggling with ultralow interest rates, major banks have also been publishing regular updates on how well they would do if interest rates suddenly surged upward. . . . Bank of America . . . says a 1-percentage-point rise in short-term rates would add $3.29 billion. . . . [A] back-of-the-envelope calculation suggests an incremental $2.9 billion of extra pretax income in 2017, or 11.5% of the bank’s expected 2016 pretax profit . . . .

As observed in an April 12 article on Seeking Alpha:

About half of mortgages are . . . adjusting rate mortgages [ARMs] with trigger points that allow for automatic rate increases, often at much more than the official rate rise. . . .

One can see why the financial sector is keen for rate rises as they have mined the economy with exploding rate loans and need the consumer to get caught in the minefield.

Even a modest rise in interest rates will send large flows of money to the banking sector. This will be cost-push inflationary as finance is a part of almost everything we do, and the cost of business and living will rise because of it for no gain.

Cost-push inflation will drive up the Consumer Price Index, ostensibly justifying further increases in the interest rate, in a self-fulfilling prophecy in which the FOMC will say, “We tried – we just couldn’t keep up with the CPI.”

A Closer Look at the FOMC

The FOMC is composed of the Federal Reserve’s seven-member Board of Governors, the president of the New York Fed, and four presidents from the other 11 Federal Reserve Banks on a rotating basis. All 12 Federal Reserve Banks are corporations, the stock of which is 100% owned by the banks in their districts; and New York is the district of Wall Street. The Board of Governors currently has four vacancies, leaving the member banks in majority control of the FOMC. Wall Street calls the shots; and Wall Street stands to make a bundle off rising interest rates.

The Federal Reserve calls itself “independent,” but it is independent only of government. It marches to the drums of the banks that are its private owners. To prevent another Great Recession or Great Depression, Congress needs to amend the Federal Reserve Act, nationalize the Fed, and turn it into a public utility, one that is responsive to the needs of the public and the economy.

• This article was originally published at Truthdig.com.

The Military Industrial Complex Strikes Again: War Spending Will Bankrupt America

Why throw money at defense when everything is falling down around us? Do we need to spend more money on our military (about $600 billion this year) than the next seven countries combined? Do we need 1.4 million active military personnel and 850,000 reserves when the enemy at the moment — ISIS — numbers in the low tens of thousands? If so, it seems there’s something radically wrong with our strategy. Should 55% of the federal government’s discretionary spending go to the military and only 3% to transportation when the toll in American lives is far greater from failing infrastructure than from terrorism? Does California need nearly as many active military bases (31, according to militarybases.com) as it has UC and state university campuses (33)? And does the state need more active duty military personnel (168,000, according to Governing magazine) than public elementary school teachers (139,000)?”

— Steve Lopez, Los Angeles Times, June 6, 2015.

Mark my words, America’s war spending will bankrupt the nation.

For that matter, America’s war spending has already bankrupted the nation to the tune of more than $20 trillion dollars.

Now the Trump Administration is pushing for a $4.4 trillion budget for fiscal year 2019 that would add $7 trillion to the already unsustainable federal deficit in order to sustain America’s military empire abroad and dramatically expand the police state here at home.  Trump also wants American taxpayers to cover the cost of building that infamous border wall.

Truly, Trump may turn out to be, as policy analyst Stan Collender warned, “the biggest deficit- and debt-increasing president of all time.”

For those in need of a quick reminder: “A budget deficit is the difference between what the federal government spends and what it takes in.  The national debt, also known as the public debt, is the result of the federal government borrowing money to cover years and years of budget deficits.”

Right now, the U.S. government is operating in the negative on every front: it’s spending far more than what it makes (and takes from the American taxpayers) and it is borrowing heavily (from foreign governments and Social Security) to keep the government operating and keep funding its endless wars abroad.

This is how military empires fall and fail: by spreading themselves too thin and spending themselves to death.

It happened in Rome. It’s happening again.

Not content to merely police the globe, in recent decades America has gradually transformed its homeland into a battlefield with militarized police and weapons better suited to a war zone.

Since taking office, President Trump—much like his predecessors—has marched in lockstep with the military. Now Trump wants $716 billion to expand America’s military empire abroad and billions more to hire cops, build more prisons and wage more profit-driven war-on-drugs/war-on-terrorism/war-on-crime programs that eat away at the Fourth Amendment while failing to make the country any safer.

Even the funds requested for infrastructure will do little to shore up the nation’s crumbling roads, bridges, railways, highways, power grids and dams.

No matter how you break it down, this is not a budget aimed at perfecting the Union, establishing justice, insuring domestic tranquility, providing for the common defense, promoting general welfare, or securing the blessings of liberty for the American people.

No, this is a budget aimed at pandering to the powerful money interests (military, corporate and security) that run the Deep State and hold the government in its clutches.

So much for Trump’s campaign promises to balance the budget and drain the swamps of corruption.

The glaring economic truth is that at the end of the day, it’s the military industrial complex—and not the sick, the elderly or the poor—that is pushing America towards bankruptcy.

As investigative journalist Uri Friedman puts it, for more than 15 years now, the United States has been fighting terrorism with a credit card, “essentially bankrolling the wars with debt, in the form of purchases of U.S. Treasury bonds by U.S.-based entities like pension funds and state and local governments, and by countries like China and Japan.”

The illicit merger of the armaments industry and the Pentagon that President Dwight D. Eisenhower warned us against more than 50 years ago has come to represent perhaps the greatest threat to the nation’s fragile infrastructure today.

Having been co-opted by greedy defense contractors, corrupt politicians and incompetent government officials, America’s expanding military empire is bleeding the country dry at a rate of more than $15 billion a month (or $20 million an hour)—and that’s just what the government spends on foreign wars.

That does not include the cost of maintaining and staffing the 1000-plus U.S. military bases spread around the globe.

Incredibly, although the U.S. constitutes only 5% of the world’s population, America boasts almost 50% of the world’s total military expenditure, spending more on the military than the next 19 biggest spending nations combined.

In fact, the Pentagon spends more on war than all 50 states combined spend on health, education, welfare, and safety.

War is not cheap.

Although the federal government obscures so much about its defense spending that accurate figures are difficult to procure, we do know that since 2001, the U.S. government has spent more than $1.8 trillion in the wars in Afghanistan and Iraq (that’s $8.3 million per hour).

That doesn’t include wars and military exercises waged around the globe, which are expected to push the total bill upwards of $12 trillion by 2053.

Mind you, these ongoing wars—riddled by corruption, graft and bumbling incompetence—have done little to keep the country safe while enriching the military industrial complex—and private defense contractors—at taxpayer expense.

Just recently, for example, a leading accounting firm concluded that one of the Pentagon’s largest agencies “can’t account for hundreds of millions of dollars’ worth of spending.”

Just consider the fact that it costs American taxpayers $2.1 million per year for each soldier deployed in Afghanistan.

Imagine what you could do with that money if it were spent on domestic needs here at home.

Unfortunately, that’s not going to happen any time soon, not as long as the money interests in Washington keep calling the shots and profiting from the spoils of war.

War has become a huge money-making venture, and America, with its vast military empire, is one of its best buyers and sellers. Not only does the U.S. have the largest defense budget, it also ranks highest as the world’s largest arms exporter.

The American military-industrial complex has erected an empire unsurpassed in history in its breadth and scope, one dedicated to conducting perpetual warfare throughout the earth.

For example, while erecting a security surveillance state in the U.S., the military-industrial complex has perpetuated a worldwide military empire with American troops stationed in 177 countries (over 70% of the countries worldwide).

In the process, billions have been spent erecting luxury military installations throughout the world.

For example, the U.S. Embassy built in Iraq, dubbed “Fortress Baghdad,” covers 104 acres and boasts a “city within a city” that includes six apartment buildings, a Marine barracks, swimming pool, shops and 15-foot-thick walls. Camp Anaconda in Iraq, like many U.S. military bases scattered across the globe, was structured to resemble a mini-city with pools, fast food restaurants, miniature golf courses and movie theaters.

While most Americans can scarcely afford the cost of heating and cooling their own homes, the American government spends $20 billion annually just to provide air conditioning for military installations in Iraq and Afghanistan.

In essence, what we’re doing is “we’re air conditioning the desert over there in Afghanistan, Iraq, and other places,” noted retired brigadier general Steven Anderson, a former chief logistician for Gen. David Petraeus in Iraq.

Think about that for a minute.

There’s a good reason why “bloated,” “corrupt” and “inefficient” are among the words most commonly applied to the government, especially the Department of Defense and its contractors.

For instance, a study by the Government Accountability Office found that $70 billion worth of cost overruns by the Pentagon were caused by management failures. To put that in perspective, that equates to one and a half times the State Department’s entire $47 billion annual budget.

Fraud is rampant.

A government audit, for example, found that defense contractor Boeing has been massively overcharging taxpayers for mundane parts, resulting in tens of millions of dollars in overspending. As the report noted, the American taxpayer paid:

$71 for a metal pin that should cost just 4 cents; $644.75 for a small gear smaller than a dime that sells for $12.51: more than a 5,100 percent increase in price. $1,678.61 for another tiny part, also smaller than a dime, that could have been bought within DoD for $7.71: a 21,000 percent increase. $71.01 for a straight, thin metal pin that DoD had on hand, unused by the tens of thousands, for 4 cents: an increase of over 177,000 percent.

Price gouging has become an accepted form of corruption within the American military empire.

And if you think gas prices at home can get high, just consider what the American taxpayer is being forced to shell out overseas: once all the expenses of delivering gas to troops in the field are factored in, we’re paying between $18-30 per gallon for gas in Iraq and Afghanistan.

Incredibly, despite reports of corruption, abuse and waste, the mega-corporations behind much of this ineptitude and corruption continue to be awarded military contracts worth billions of dollars.

The rationale may keep changing for why American military forces are in Afghanistan, Iraq and elsewhere, but the one that remains constant is that those who run the government are feeding the appetite of the military industrial complex.

What began in 2001 as part of an alleged effort to root out al Qaeda has turned into a goldmine for the military industrial complex and its army of private contractors.

Just consider: the Pentagon in 2008 spent more money every five seconds in Iraq than the average American earned in a year.

Yet Congress and the White House want taxpayers to accept that the only way to reduce the nation’s ballooning deficit is by cutting “entitlement” programs such as Social Security and Medicare?

As Martin Luther King Jr. recognized, under a military empire, war and its profiteering will always take precedence over the people’s basic human needs.

Simply put, we cannot afford to maintain our over-extended military empire.

Money is the new 800-pound gorilla,” remarked a senior administration official involved in Afghanistan. “It shifts the debate from ‘Is the strategy working?’ to ‘Can we afford this?’ And when you view it that way, the scope of the mission that we have now is far, far less defensible.”

Or as one commentator noted, “Foreclosing the future of our country should not be confused with defending it.”

Inevitably, military empires collapse.

As Cullen Murphy, author of Are We Rome? and editor-at-large of Vanity Fair writes:

A millennium hence America will be hard to recognize. It may not exist as a nation-state in the form it does now—or even exist at all. Will the transitions ahead be gradual and peaceful or abrupt and catastrophic? Will our descendants be living productive lives in a society better than the one we inhabit now? Whatever happens, will valuable aspects of America’s legacy weave through the fabric of civilizations to come? Will historians someday have reason to ask, Did America really fall?

The problem we wrestle with is none other than a distorted American empire, complete with mega-corporations, security-industrial complexes and a burgeoning military. And it has its sights set on absolute domination.

Eventually, however, all military empires fail.

At the height of its power, even the mighty Roman Empire could not stare down a collapsing economy and a burgeoning military. Prolonged periods of war and false economic prosperity largely led to its demise. As historian Chalmers Johnson predicts:

The fate of previous democratic empires suggests that such a conflict is unsustainable and will be resolved in one of two ways. Rome attempted to keep its empire and lost its democracy. Britain chose to remain democratic and in the process let go its empire. Intentionally or not, the people of the United States already are well embarked upon the course of non-democratic empire.

I would suggest that what we have is a confluence of factors and influences that go beyond mere comparisons to Rome.

It is a union of Orwell’s 1984 with its shadowy, totalitarian government; i.e., fascism, the union of government and corporate powers, and a total surveillance state with a military empire extended throughout the world.

As we have seen with the militarizing of the police, the growth of and reliance on militarism as the solution for our problems both domestically and abroad affects the basic principles upon which American society should operate.

We must keep in mind that a military empire will be ruled not by lofty ideals of equality and justice but by the power of the sword. Those in the military are primarily trained to conduct warfare, not preserve the peace.

Here’s the kicker, though: if the American empire falls and the American economy collapses—and with it the last vestiges of our constitutional republic—it will be the government and its trillion-dollar war budgets that are to blame.

Of course, the government has already anticipated this breakdown.

That’s why the government has transformed America into a war zone, turned the nation into a surveillance state, and labelled “we the people” as enemy combatants.

For years now, the government has worked with the military to prepare for widespread civil unrest brought about by “economic collapse, loss of functioning political and legal order, purposeful domestic resistance or insurgency, pervasive public health emergencies, and catastrophic natural and human disasters.”

Having spent more than half a century exporting war to foreign lands, profiting from war, and creating a national economy seemingly dependent on the spoils of war, the war hawks long ago turned their profit-driven appetites on us, bringing home the spoils of war—the military tanks, grenade launchers, Kevlar helmets, assault rifles, gas masks, ammunition, battering rams, night vision binoculars, etc.—and handing them over to local police, thereby turning America into a battlefield.

As I make clear in my book Battlefield America: The War on the American People, this is how the police state wins and “we the people” lose.

More than 50 years ago, President Dwight Eisenhower warned us not to let the profit-driven war machine endanger our liberties or democratic processes.

We failed to heed his warning.

As Eisenhower recognized in a speech given to the American Society of Newspaper Editors, on April 16, 1953, the consequences of allowing the military-industrial complex to wage war, exhaust our resources and dictate our national priorities are beyond grave:

Every gun that is made, every warship launched, every rocket fired signifies, in the final sense, a theft from those who hunger and are not fed, those who are cold and are not clothed. This world in arms is not spending money alone. It is spending the sweat of its laborers, the genius of its scientists, the hopes of its children. The cost of one modern heavy bomber is this: a modern brick school in more than 30 cities. It is two electric power plants, each serving a town of 60,000 population. It is two fine, fully equipped hospitals. It is some fifty miles of concrete pavement. We pay for a single fighter plane with a half million bushels of wheat. We pay for a single destroyer with new homes that could have housed more than 8,000 people… This is not a way of life at all, in any true sense. Under the cloud of threatening war, it is humanity hanging from a cross of iron.

Barnaby Joyce, Sex and Finance

The insatiable appetite of Anglophone cultures for the prurient is of a different order to others.  But it is an appetite tinged by horror, squeamishness and concern.  Added to that such traditional markers, not to mention such markers as marriage, family and conservative values, and the whole thing becomes indigestible.

Australian politics is awash with only one story at the moment.  There are no grand schemes and visions, only the prospect of whether the Deputy Prime Minister Barnaby Joyce did wrong by his family in impregnating a political staffer. (That now former staffer, Vikki Campion, is afforded various names in the relationship argot: partner, girlfriend, assistant, bun-in-oven carrier.)

The nature of this explosive interest, repeatedly advertised as a lack of interest (“we don’t have an interest in his private life”) has a tinny quality to it, largely given the general awareness amongst government members, staffers and the Canberra press gallery about Mr. Joyce’s extra-marital pursuits. The Daily Telegraph, needing copy to fill certain, generally vapid columns, decided to break the tacit consensus.  Where there is sex, there is hypocrisy.

Any “sex scandal” immediately triggers a discussion about how the political figure operates in public, and the world of private endeavour.  Aristotle famously suggested a division between political pursuit and household matters.  The French continue to maintain a somewhat artificial distinction between the two, deeming the transgression of the personal as separate from the political.  As with everything else, this is a matter of degree and weight.  Privacy can be used as an unwarranted cover for abuse.

Parallels have bitten.  The interminably present Michelle Grattan, who knows Canberra’s press gallery circles with a cloying intimacy, compares the Joyce-Campion affair with that of Jim Cairns’ and staffer Junie Morosi. The latter, taking place in the torrid years of the Whitlam government, was different, claims Grattan, because Morosi “was a political player, through her enormous influence on her boss.”

Of Joyce-Campion, Grattan offered a different reading. “No-one suggests Campion, who was deliberately transferred out of Joyce’s office nearly a year ago, was a political mover-and-shaker.”  But Joyce had been, Grattan could sense with razor sharp intuition, “more distracted and difficult, though his citizenship imbroglio was a factor too.”

These observations are, at best, trite.  The exertion of sexual influence can spill over into other realms.  If you gaze long enough at the sexualised politician, the bed hopping political operator, you are bound to see sex and office converge, even conflate.  Pillow talk is political talk; the affairs of the heart are also affairs of the next meeting, the next agenda, the next trip funded by the public purse.  Bedrooms are places of breeding of all sorts, conspiracies included.  The hatchet man or woman, keen to find a story on the linking of the two spheres of public office and private endeavour, is bound to find a link, however forced.

The focus of these revelations has shifted from the softly-softly dimension (respect for privacy; observance for boundaries) to hard political realities, notably those centred on finance.  The sexual, in other words, is becoming political.  Money is starting to talk.

This transformation is an example of political anthropology in action.  Limits are being tested, and these are dangerous to the political parties concerned.  It should be axiomatic that affairs between staffer and politician, often of the extra-marital sort, find form in a distant capital, away from family and domestic comfort.  Animal behaviour, and needs, press on relentlessly, a rage that requires satiation.  Ultimately, Joyce’s profile counts, soaring, albeit laboriously, over others.

The Nationals feel that their primary retail product in politics, one seemingly indestructible (Teflon coated against the gaffe; immune to punishment for such slips ups as his dual citizenship) has been soiled.  The Australian Labor Party smell the prospect of impropriety in terms of finances.  After all, the Australian Prime Minister keeps insisting on “jobs growth”, and Joyce may well have taken this to heart in encouraging colleagues to form a position (or positions) specifically for the future mother of his child.  These include one in the office of Resource Minister Matt Canavan and subsequent to that, the Nationals whip Damian Drum.

Deputy Labor leader, Tanya Plibersek, flagged something of a blueprint for what is to come to the ABC on Sunday.  “I don’t think [Joyce] needs to account for his personal behaviour, his relationships, to the public.”  But “the area of the expenditure of taxpayers’ funds” was a matter of “genuine public interest”, namely, whether jobs were specifically created for Campion, or whether there had been “the expenditure of taxpayer funds on travel.”

Finance Minister Mathias Cormann, whose portfolio oversees the employment of political staff, is clearly asking everyone else to move on – there is nothing to see on that score.  Campion “is clearly somebody who is qualified to do the job and she was hired in certain positions based on merit and there’s nothing really further to add.”

The question on all lips, from press gallery hacks to the morally indignant, is whether Joyce will survive.  Crystal ball gazer and political tea leaf reader Niki Savva feels that the coffin is being readied for Joyce’s political career.  On the ABC’s Insiders program, Savva unequivocally claimed that “his career is over. Maybe not in the short term but certainly in the medium term.”  That, ultimately, will be a matter for the political apparatchiks who are now pouring over the squalid details.

Ensuring Justice In The Era Of Transformation

In our last article, we predicted that the 2020s will be an era of transformation.  We focused on the development of the movement since the “Take-Off” phase of the 2011 Occupy encampments, followed by Black Lives Matter, Fight for $15, Idle No More, carbon infrastructure protests, debt resistance, immigration protests and more. The 2020s will be a decade when the impacts of years of mismanagement of crisis situations, such as climate change, inequality and US militarism, become unavoidable requiring major transformations. What we do now to prepare will help determine the result.

Transformative Era will be Driven by Long Neglected Issues

For many of the issues the popular movement has been raising, the government has failed to act or taken counterproductive actions, putting the profits and interests of campaign donors ahead of the necessities of people and protection of the planet. The environment is being destroyed, the food supply is being poisoned by pesticides and the wealth divide is widening.

The massive threat of climate change has become more immediate and worse. In the last year, the scientific consensus has become more dire. The impacts are upon us now wildfires and superstorms, war brought on by drought, mass migrations and deaths.

At the same time multiple analyses and government reports point to a fading US empire. Since the end of World War II, the US has dominated the globe politically, economically and militarily becoming the largest empire in world history. That era is coming to an end.

In his new book, In the Shadows of the American Century, historian and chronicler of empire Alfred McCoy writes that US empire will end in the next decade. The US is falling behind in all spheres of influence. McCoy demonstrates how US spying on foreign governments and using torture in multiple countries have undermined the US’ moral authority, as have aggressive bullying for corporation-friendly trade deals, holding back climate agreements in the Obama era and pulling out of the climate agreement in the Trump era. He chronicles the rise of China, India and Russia, among other countries. The power dynamics of the world are changing with the US being left out of important decisions while China and Russia work in tandem in more areas.

McCoy describes various scenarios for how US empire will end, depending on how the current crises play out. No matter what happens, it is up to those of us living in the US to demand the US dismantles its empire in a way that causes the least harm. Paul Street writes, “the decline of the American Empire might be a good thing for ordinary people at home as well as abroad.” Ending empire is an opportunity for changes that move us toward being a cooperative nation in a multipolar world rather than hanging on to power through military might.

The end of empire will have many repercussions. Public investment in empire has meant a lack of investment on urgent needs; e.g., repairing failing and inadequate infrastructure, rebuilding cities that have been ignored, especially in black and brown communities, strengthening education from pre-school through post-graduate, to name a handful of many inadequately-funded areas. The empire economy helped create an unfair economy at home that pushed people into poverty, debt and homelessness. To reverse those impacts, the US must shift military spending to meet civilian needs and provide funding for a new democratized economy.

System-changing Issues

The credibility of the power structure that allowed these crises to fester will shrink. On each of the issues where the people’s movement has been growing, those in power have either denied reality and done nothing or have made matters worse through counterproductive policies. Multiple crisis situations barreling toward us require mobilization for system change, not simple reforms.

The US democracy crisis is due to the corruption of money in elections, laws that prevent challenges by third parties, media that warps coverage in favor of the duopoly, gerrymandering and more. The mirage of US elections has become evident to tens of millions of people resulting in both duopoly parties being unpopular and in disarray.

System failure is also a failure of the capitalist economic system, dominated by Wall Street, monopolies and massive transnational corporations. The kleptocrats in power are looting public treasures, monetizing and profiteering off our basic necessities such as water, energy and transportation. Increasing numbers of people agree we need a new economy based on economic democracy and the Commons where key sectors are socialized and under democratic control.

In Seymour Melman and the New American Revolution, Jonathan Feldman describes Melman’s ideas for dismantling empire and capitalism and shifting economic and political power to people through worker ownership and other democratized systems.

The movement must position itself for this coming era of transition by: (1) weakening the power structure by protest of mistaken policies and building alternatives to replace them; and (2) specifically defining the transformations we want so that the power holders cannot deceive us with false measures.

Opportunities to build movement power

Economic justice: Inequality in the United States is extreme and the world’s wealthy grow obscenely richer. Three people in the US have wealth equal to half the population while millions in urban areas have zero wealthtens of millions cannot handle a surprise $500 expense and an entire generation is entering adulthood in massive debt to a job market that will keep them in debt.

Over the last 40 years, CEO pay rose 937 percent while worker compensation remained stagnant. The recent tax cuts will add to all of these problems with increased debt caused by tax cuts for the rich causing cuts to social safety net programs like Medicaid and privatizing Social Security and Medicare. An economic crash seems almost inevitable as this decade comes to a close.

National consensus on issues like taxing the rich and building the economy from the bottom up will grow, creating opportunities for new economy programs; e.g., workers owning businesses, laws ensuring a livable wage, public banks, participatory budgeting where people decide public expenditures, a guaranteed income to ensure people can meet their basic needs and other programs giving people power in the economy. Not only should the recently-passed tax cuts be repealed, but an aggressively progressive income and wealth tax should be put in place along with a financial transactions tax to shrink the wealth divide and finance essential services.

Healthcare as a public good: Health care continues to be a top issue of concern as people cannot afford necessary care. Even with insurance, the deductibles and co-pays on top of high premiums are unaffordable and tens of millions of people cannot afford any insurance. To confront the healthcare crisis, the US most move from a system dominated by profits for insurance companies, Big Pharma and providers to a system where health care is a public good with equal access for all funded by a progressive tax. National improved Medicare for all has majority support and is poised to become a litmus test issue in upcoming elections.

Internet freedom with equal access for all and independent media: The attack on net neutrality has created a massive movement and national consensus that access to the Internet should be equal for all. People recognize that the Internet is essential to participate in the economy, politics and culture, resulting in calls to nationalize the Internet. The quality of Internet service must be improved so there is high speed Internet, as exists in other developed countries. We must create an Internet for the 21st Century.

Further concentration of media is limiting access to a diversity of views. Freedom of speech in the 21st Century requires protection of political speech on the Internet not only from government but from corporations; e.g., Google and Facebook, that control social media. Laws must protect independent and social media as democracy requires diverse information and robust debate.

Confronting climate change and reversing environmental degradation: There must be a rapid transition to a clean energy economy, which will create jobs for those who install solar, wind and other clean energy sources, construct efficient transit and housing, and conduct research to develop technology needed to remake the economy. The climate crisis will impact all aspects of life, including food, farming, water management, housing and more. Energy must be democratized so people who create more energy are compensated as producers and energy is socialized through public utilities. A carbon tax will encourage the change to clean energy and provide funds for the transition.

End of empire: There will be massive shifts in the economy at home and abroad and in foreign policy as empire comes to an end. The military-security state comprises a large and decentralized sector of the US economy. A just transition to a civilian peace economy will be required. The US will no longer have the power to coerce countries into signing trade deals, an economic arm of empire, that allow the exploitation of workers, communities and the environment. A new era of trade designed to protect people and planet will become possible. New international institutions will be needed to correct the weaknesses of the United Nations and allow governance that protects human rights and economic and racial equality. Mechanisms will be required to resolve conflicts between nations peacefully.

Systemic Racism: Through all these issues, racism, a hierarchy of power that allows one group of people to dominate another, is intimately intertwined. Institutions that perpetuate racism and inequality will need to be dismantled. This is not identity politics, as some have accused, nor does it negate the suffering and oppression of poor white people. It is a reality that must be faced if we are to create new systems that do not default to disparities between groups of people. Indigenous rights and sovereignty must be respected. Reparations must be paid for generations of stolen wealth.

The Task of Insuring Justice

While transitions are inevitable, it is not inevitable they will be made based on economic, racial and environmental justice and peace. It is our responsibility to educate ourselves and each other so people understand the root causes of the crises we face, build popular power and create alternative systems that have desirable results. This is not the time for reform or the belief that we just need to elect the right person. The current systems, including the electoral system, are rigged against us and we need to use popular power change them.

As Kevin Buckland writes in Roar Magazine:

If we fail to offer scalable discursive, tactical and structural alternatives to the extractivist logic that has created the climate crisis, capitalism may itself transform the coming wave of disruptions into its own benefit, exacerbating existent inequalities for every social and ecological ‘issue’ as it strengthens its stranglehold of the future on a rapidly destabilizing battleground.

Buckland focuses on the climate crisis, but the same is relevant for other crises. A crisis  provides an opportunity for change. Those who have solutions on hand and power will determine what type of change occurs.

We face formidable opponents. They have resources, money and tools that can thwart our efforts. But this is nothing new. All movements for social transformation have faced difficult odds, still they have prevailed. We outnumber our opponents and when we work together, though we may not have the money, we do have resources and tools. We also have allies.

At a recent family gathering, one of our relatives who does human rights work remarked that people in other countries feel that they should be able to vote in US elections because the US has such a significant global impact. While that isn’t going to happen, there are ways that the international community outside the US can have influence, and that is through boycotts, divestments and sanctions. This can happen at the individual level, through institutions such as universities and at the governmental level. Activists can call on their governments to target US institutions of military and economic dominance.

During the South African Apartheid, it was South African activists who called on other nations to boycott their country. This was a primary reason why apartheid ended. A decade ago, hundreds of Palestinians came together and called for boycott, divestment and sanctions (BDS) of Israel. The BDS movement is having such a great effect that Israel is fighting to stop it.

And while we are reaching out to our international allies, we can share information with each other about what systems work and don’t work so that we can create the new world we need more rapidly. Collectively, we have greater wisdom than individually.

We live in a difficult time, but it is also a time of opportunities to correct our mistakes and build something better. Change is coming. As we wrote in 2011, history is knocking. We must all decide in 2018 how we will answer it.

They Keep Saying: “Hope is the Only Thing Left”

But no matter what environmentalists do, our best efforts are insufficient. We’re losing badly, on every front. Those in power are hell-bent on destroying the planet, and most people don’t care. Frankly, I don’t have much hope. But I think that’s a good thing. Hope is what keeps us chained to the system, the conglomerate of people and ideas and ideals that is causing the destruction of the Earth.

To start, there is the false hope that suddenly somehow the system may inexplicably change. Or technology will save us. Or the Great Mother. Or beings from Alpha Centauri. Or Jesus Christ. Or Santa Claus. All of these false hopes lead to inaction, or at least to ineffectiveness. One reason my mother stayed with my abusive father was that there were no battered women’s shelters in the ’50s and ’60s, but another was her false hope that he would change. False hopes bind us to unlivable situations, and blind us to real possibilities.

— Derrick Jensen, essay, “Beyond Hope

Life Measured in Gold

What is a life worth in this poisoned pen world of American deception? I have been scouring the depths of this culture for decades, 4.5 to be exact, looking for signs of hope, dredging the bowels of a country that has never been what so many today believe it was/is/will be. Ever.

I also balked for 4.5 decades at the silliness of Americans who hands down (70 percent) give the US Military Killing Machine the highest marks of all humanity coming out of the intestines of this genocidal country. These high school football games now have flyovers from attack jets and commandos from helicopters. Big fat tears for the mercenaries, and oh how this is normalized behavior.

Pretty soon, the camo and drones will be at your favorite daycare center recruiting.

Get this shit about America, ending this 2017, with Trump and friends as the new Kamikazes (all politicians and corporations love what Trump is and how he got there) pushing the national agenda for the more than just simple daft American consumer – offended by kneeling . . . getting a refund:

And if legislation from Indiana State Representative Milo Smith passes, the Colts would be required to offer those fans who feel disrespected refunds if Colts players kneel during the national anthem of home games, according to the Indianapolis Star.

“To me when they take a knee during the national anthem, it’s not respecting the national anthem or our country,” Smith said. “Our government isn’t perfect, but it’s still the best country in the world and I think we need to be respectful of it.”

You have to wonder if the refund includes all taxes paid since this country is run by economic hit men, buggering the people believing in government of, for, by, with the people, so called representational democracy? How many cents on the dollar go to US Military Inc. and the Little Eichmann’s running the complex that is guns-punishment-armaments-high tech tools of enslavement? Is it fifty-five out of every buck? Sixty cents? Do the extractive thugs with their massive externalities paid for by you and me and the rest of the world, is that tax refundable? Up to what, 70 cents of every dollar paid to Uncle Sam’s Killing Machine?

How many of those dollars will get refunded? All those offshore untaxable accounts? We getting refunds on that big fat kneeling of the millionaires/billionaires? Think I can cash it all in because I am offended by the high crimes insulter that is the Mafia Donald Trump for putting his knee into our proverbial groin and up against our children’s children’s proverbial necks?

I am reminded of other people’s writing looking at the blasphemy of a happy new year, let’s hope 2018 is better:

Those in power love it when we hold on to our fake optimism year after year, instead of revolting against these worn out celebrations. They love it when they see millions of mindless consumers storming stores to buy and consume more shiny and glittering gifts, as if they are genuine signs of loving and caring for each other. They love it when we keep quiet and do business as usual while “hoping for a better new year.”

An Angel in Every Household

This Wish for an Angel bullshit is America, all cuddly with Disneyland pudge, all teary-eyed flatulence when the old millionaire hands out Big Macs to the swollen masses who are homeless and dying.

In any case, there are a few bright spots for me coming into this next stage of the electrical storm, 2018 Surveillance-Punishment-Alternative Reality US/White race (sic): a teller (soon to be extinct professional) at my local bank gets it about Facebook and Zio-Zuckerberg selling us all out; and she cancelled her Page, and she understands the surveillance society she is now in, as a 28-something Latina in White-White Portland. She has plans to circumvent the reality of the controllers to her own reality.

Then there’s my buddy who is 64, Jim, and who’s worldly, playing Texas Hold ‘em in several small towns along the Columbia River and making money under the table while collecting social security checks and talking about the history of Switzerland, he’s really happy that his taxes in Washington (where he has 75 acres and a home next to my 20 raw acres) are doing what they should: providing roads, public services, fire control, all the necessary bureaucracy to keep people going and to deliver vital services.

The bright hope is that many significant people in my life knowing they are not living/working/existing in their own house, as my African-American friends say every time we face the hell of incorrigible bosses who berate and pencil-push us into corners at whichever job we find ourselves in. There are people running staffing agencies in my life who try and try to make the lives of their temps more tolerable, and try to hike up hourly wages and act as go-betweens between the employee (temporary) and the outfit bosses, typically as ugly as a Jeff Bezos fulfillment (sic) center, also known as a dead-end hell hole (for the lack of livable wages and the redneck drill sergeant supervision).

Uber fascist, Jeff, forcing journalists to not be, err, real journalists —

Jeff Bezos, owner of The Washington Post, has instituted a new policy with regard to employees’ social media behavior… a new social-media policy at the Washington Post prohibits conduct on social media that “adversely affects Post’s customers, advertisers, subscribers, vendors, suppliers or partners.”

In such cases, Post management reserves the right to take disciplinary action “up to and including termination of employment.”

His paper’s new social-media policy specifically lists the following among the types of communications which are now prohibited:

Disparaging the products and services of The Post’s advertisers, subscribers, competitors, business partners or vendors.

Ahh, this perniciousness will engulf all corporations’ policies. Imagine, a journalist who can’t “disparage” things, people, corporations, ideas, products, services. The Age of Bizarre turn into the Age of Dumb and Dumber. The devil’s in the details, and I predict in 2018 Mr. Bezos will be positioning himself to run for POTUS soon — more devils in the White House:

See the source image

See the source image

Will Anyone Really Care in a Hundred Years if There is No Amazon (forest)?

I am attempting to be cogent here coming into 2018, trying to make the deadline for this DV end-of-the-year piece so its fine editor (here, Dissident Voice, going on 17 years or more as a radical news source) can scramble and get pieces ready for that artificial tick of the clockwork. My lamentation is that as each day in 2018 unfolds, the powers will make it more difficult to even launch anything small and terse and dissident like this blog. Imagine doing all this work for free, and the question is when the lights go out because of Verizon and ATT and Comcast, all these great pieces and ideas, more than a decades’ worth, thousands, whoosh, vanished into the digital thin air.

Which brings me to my hook here, one that I will be returning to in other pieces coming up in the year of the dog. I am taking issue with this laborious and loud lament usually stated by non-working class elites, or quasi-elites –

“Well, in a hundred years, what will our great-great grandchildren think how we left the world? In a hundred years, the people will be asking, ‘What the hell was that generation thinking doing/allowing/creating/destroying/ promoting/justifying . . . THAT?”

The “that,” conveniently, is a fill-in-the-blank answer, but the reality is there is no hundred years from now species of man/woman/child/they/it, or archetype of an American who would even have the context or knowledge to ask anything of the sort. The fact is we are on a pathway to completely damaged people, a neo-species of sick, psychologically dented, ethically demented, drawn and quartered spirits, people, youth and old, tied to the giant 24/7 15-minutes of attention on a million stories cycled into the next and the next 15 minutes. Trivial and shallowness, recycled, meaningless, cult of the famous-infamous, proud to know the football scores and the murderers and NYSE’s predictions for another year of gluttony.

People also held by gut diseases, by vaccine injuries, by persistent organic chemicals eating at their mitochondria, their DNA, or the off-gassing grossness in every corner of their lives, cesspools called ponds, eddies of slurry called rivers, black lagoons and gyrating garbage patches as beaches, clear-cut forests, oh, so inundated cities, half water logged.

Do we think in a hundred years there will be memory, human memory, as the kingpins of punishment and debt collude to turn everyone as obsolete. The horror, the horror, Kurtz might say in the Heart of Darkness, not about the white princes of the British Isle, but pointed at the masters of the economics of this universe, those three men owning the wealth of a 150 million, and those thirty titans of obsolescence and greed and exploitation toppling wealth of nations, more in those 30 men’s wallets than 3.5 billion of us collectively.

There will be no teenager in 2080 asking, “Man, what were you thinking killing the great barrier reef?” No millennial in 2100 admonishing, “How could they have allowed every single waking and sleeping and breathing moment be to surveilled by Big Brother Corporation-Government?”

No activists in 2100 running around the country with their big banner drops off the top of buildings stating, “Our grandparents are responsible for the oceans rising, the end of civilization, and my chronic and genetic illness!”

There Will Be Blood and We Do Need those Stinkin’ Badges

This is the same soft-shoe soft-headed thinking that runs Hollywood and Madison Avenue, that ensconces in the hallways of schools and colleges. There is no future world of dystopia and endless rot where a new generation a century from now, or even a few radicals or dissidents, will be admonishing past generations.

What they will have will be how they think. Acceptance is the gulag, now or in a century. Acceptance now is 11 million babies dying a year of treatable diseases. The accepting masses young and old today are here watching mountains explode and insects going extinct and oceans emptying out and accepting the infinite death ray of flat screens and Netflix-HBO-Amazon-20th Century Fox. Entertaining ourselves now into stupidity, and back to the superficiality that so many Americans have that causes them to think they are smart.

It ain’t gonna happen, generations in the future catching on, lamenting, knowing, and admonishing and understanding what each season brings in this madness of pre-post-retrofitting industrialization into the hyper madness of drones-artificial people/intelligence/ecologies/relationships/thinking.

Jeff Bezos and Musk and Google offspring and Zuckerberg zygotes will be the ruling classes of information flow, the arbiters of history found, kept and scrubbed. This is the time of the carnival, the sideshow, the blaring idiot Trump genuflecting to the waitresses and the go-go dancers while his effete sidekicks like Zio-Christian Pence take it all with the glee of televangelists hiding kiddie porn and their rhinestone g-strings.

The spectacle is our own downfall, the spiraling vortex of more and more aberrations turning into regular, every day, every minute events. The homeless wandering, bused from city to city; floating islands of crap, zfor the jobless to pick through; the obsolete, more and more people coughing up spare kidneys, letting the grand illusionists pull skin off of them for the $500 ready in hand entertainment, fun.

There are bigger and more horrific things than the barbarity of the Spanish Inquisition or the Crusades or the Nazi pogroms of experimentation with the mammals in their concentration camps. We are now in full-throttle Mengele mode, where each cell in us, the deplorables, the 90 percent, or 80, is bought and sold by the corporatists, the disrupting economists, the evil twins of racism and inequity. Segregation now is based on zip code, decay, urban rot, and the evils of war and profits so lovingly embraced by the elites here and the majority in a place like Israel are quickly transformed into the divide and conquer the rich are so deftly able to promulgate each week, each 24/7 million rip-off deals a day.

Mad-Mad-Mad World of Ad Men

Here, let me explain: It’s the power of marketing the lies of capitalism, of prompting the psychological warfare of USA exceptionalism, of inciting the us against them-isms of a modern age now, teaching the lesser of evils throughout a person’s lifetime that warps memory and erases not only history but humanity. And, unfortunately, what I call the shifting baseline syndrome allows what is happening now, today, to be normalized, and valorized.

Pissing in a cup during a job interview? Sheriff’s deputies protecting repo men and women? Banks getting away with foreclosing on not only homes, but lives? What baseline do I go by? In my time, the cops had no right to ask what was in my glove compartment or trunk on a traffic stop. In my day, people tried stopping someone jumping off a bridge instead of calling 911, after whipping out Smartphones videotaping it and then saying, ‘Jump . . . jump’ right before the selfie.

In my day and age, there was a modicum of interest in learning about ecosystems and how to protect wetlands, mangroves, grasslands, deltas, riparian areas, mountain tops.

In my day and age a healthy reef in the Sea of Cortes was dozens of moray eels and turtles and a hundred fish species by the thousands in one 50 minute dive (scuba) piloted by dolphins and sharks.

In my day, there were reliable journalists – mostly print, sometimes small-town journalists (I was one) – who could tell you about a topic like zoning for a new stadium on many levels, from many perspectives for hours on end!

I won’t even get into details around how pathetically ruined Homo Sapiens will be coming out of this America’s womb in fifty years – chronic illness is now hitting 50 percent of the population, but put that at 90 percent in 20 years, and half of the population will have several chronic illnesses. What’s it going to look like in 80 years?

Count that as auto-immune issues out the rooftop, attention deficit issues, constant brain fog and arterial clogging, aches and autism, abnormal blood draws and diabetes, General Anxiety Disorders and fear of thy neighbor, and a bloody mix of bacteria loads, gut ailments, paranoia, and fear of one’s own shadow. Day to day, the surveillance state ramps up, and the poverty level increases, the one-credit card voucher away from being homeless pervades, digital and computer fatigue sets in, automation and artificial intelligence overtake human relations, and the list goes on and on, so it is hilarious to think there is some Cormac McCarthy world of people wandering the earth looking for that one spit of land or some mossy forest where goblins and fairies will bring back the good old days, a time of human humanity!

The Truths Are in the Eyes of the Billionaires

You’ve got Trump saying, err, tweeting, “Bring on the Global Warming, man, with all this snow in Erie, Pennsylvania, ha-ha-ha,” and you have Purdue University president Mitch Daniels calling those of us who question glyphosate and Golden Rice as immoral:

The attack on GMO technology is the most blatant anti-science of the age. But it’s far worse than that. Lives are at stake, and while scientists, regulators, and business people are naturally reluctant to fight back, it’s morally irresponsible not to.

Daily, in 2018, the fight will be with those who have been brainwashed into thinking mandatory vaccines are legal and ethical, and that anti-GMO activists are loony, and that our food as produced by the chemical industry is more than safe.  Here, the power of those multi-billionaires and the chemical purveyors on planet earth will be tested:

Report on, the food-health nexus!

The World Bank and United Nations funded 900 scientists over three years in order to create an International Assessment of Agricultural Knowledge, Science and Technology for Development (IAASTD). Its conclusions were diametrically opposed, at both philosophical and practical levels, to those espoused by Bill Gates and clearly state that the use of GM crops is not a meaningful solution to the complex situation of world hunger.

Changing Seed and Plant Variety Protection Laws in
Tanzania—Implications for Farmer Managed Seed Systems and Smallholder Farmers

Monsanto Weed-killer Roundup Causes Cancer, California Says

European Union (EU) recently determined that it will renew glyphosate for another five years —a shorter renewal than it could have been, but not ideal when what we really wanted was a rejection of the license renewal altogether.For over two years, this vote was delayed as member states debated whether or not glyphosate is a carcinogen. The World  Health Organization’s International Agency for Research on Cancer (IARC) designated glyphosate a probable carcinogen in March 2015, a decision that IARC has continued to defend despite attacks from industry interests on multiple fronts (including from members of the U.S. House of Representatives).

The grand illusion is each community, each unique people’s we might imagine in the future will be covered in more than a trail of tears to the tenth power. More than slaves to debt and confusion, and commerce will be exacting punishment for being a being. More pain than what befell the first nations people, all those abused scoundrels, the immigrants – European illegals coming into a land that was once a nation of people and tribes. This recessive gene pool gave birth to the abused and abuser on a very special scale. This grand deception called America Great Again is more than the PT Barnum scam of credit and debt, land theft, gilded syphilitic ones determining the number of bellies bloated and brains blown away.

The very premise of these 50 states and territories, this country shitting on Puerto Rico while oligarchs and kleptomaniacs stuff billions inside the cadavers of their enemies, isn’t even the real shame.

The reality is Americans are bamboozled into believing they are god’s second chosen people, that the entire mess of this hyper-military society is somehow legitimate, a god-send to the other continents.

I have faced down the scourge and scrooge that is capitalism, credentialism, credit scores, and what one has to demonstrates his or her credence in society – status, money, power and say, and voice. I have failed in 60 years, and turning 61 in the Year of the Dog just militates my points of abject failure of my own voice having any weight.

The reality of who is and who isn’t an outlier forever is determined by how much scratch one accumulates, and how much limelight is shined upon him or her and the weight of digital ink expended.

I have listened to people say my position of precarity is all tied to the gravity of the decisions I’ve made throughout my pittance of a life. Every single decision I have made have put me behind the proverbial eight ball – healthy, both of mind and body, but underemployed, under-developed, under-realized, and precarious: one broken leg from poverty, one motorcycle accident away from institutionalization, or one verbal altercation with a cop from being dead on arrival.

Big Sugar Daddy in the Sky

More and more people are looking at the big daddy in the sky excuse, as if the bad one faces, and the deadly unraveling of one’s life are predestined, ordained a billion big bangs ago, controlled by the drone operator in the sky, the boss, head honcho of heaven.

The talk of the world now is mishmash of billionaire and millionaire sputtering illusions and delusions of grandeur. We have the multi-millionaire Obama interviewed by the ultra multi-millionaire Prince Harry and the world goes a shudder:

Barack Obama Expertly Snubbed Trump in Prince Harry Interview: The prince also couldn’t resist asking the former president some rapid-fire questions about cigarettes, celebrities, sports, and Suits.

We can’t talk about social justice anymore, or talk about the social contract, or the deadly poisoned well that is capitalism. We can’t talk about what might be better, a whole set of better ways to be humane and human, or how socialism and anarchy and humanism and communitarianism and collectiveness might hold some key to sanity and salvation for ones worthy of saving in our hurtling 8 billion human inhumane world.

Worth, value, integrity, something deeper inside the soul than transactional thinking, or this comedy of errors we call American politics. The news is not fit to print, and the Hollywood and Madison Avenue worlds are not real, yet dominate the axiom of perception being THE reality, the show that counts.

Ode to Hope

Oceanic dawn
at the center
of my life,
waves like grapes,
the sky’s solitude,
you fill me
and flood
the complete sea,
the undiminished sky,
tempo
and space,
sea foam’s white
battalions,
the orange earth,
the sun’s
fiery waist
in agony,
so many
gifts and talents,
birds soaring into their dreams,
and the sea, the sea,
suspended
aroma,
chorus of rich, resonant salt,
and meanwhile,
we men,
touch the water,
struggling,
and hoping,
we touch the sea,
hoping.

And the waves tell the firm coast:
‘Everything will be fulfilled.’

— Pablo Neruda

Even Some Rich Know They Are Filthy Rich! 

Celebrity culture, and the cult of money. The destructive nature of capitalism married to Zionism and commerce and automation and digitization is hardly recognized in the very nature of a Jeff Bezos, working hand in hand with CIA, killing the book industry, this purveyor monopoly and headmaster of the watchtower shadowing individualism and uniqueness.

The spoils of the monsters of money will be a handsome extra $1 trillion for 2017. These Storm-troopers of Capital are so filthy and filthy rich that some of their tribe even plead for taxation, plead for the lot of them to give it away. Even in the world of superficiality, sports, the head honcho of one team is lambasting his filthy and illegal gains:

Spurs coach Gregg Popovich was asked why he thinks it’s important to give back to the community: “Because we’re rich as hell and we don’t need it all, and other people need it. Then, you’re an asshole- if you don’t give it. Pretty simple.”

It has nothing to do with the democrats losing the election. It’s got to do with the way one individual conducts himself. And that’s embarrassing, it’s dangerous to our institutions and what we all stand for and what we expect the country to be. But for this individual, he’s in a game show, and everything that happens begins and ends with him, not our people and our country. Every time he talks about those things, that’s just a ruse. That’s disingenuous, cynical and fake.

Or, how about:

Federal prosecutors have requested records related to a $285 million loan that Deutsche Bank gave Jared Kushner’s family real estate company one month before Election Day, the company confirmed this week.

The records were sought by prosecutors in Brooklyn and do not appear related to special counsel Robert S. Mueller III’s investigation into Russia’s interference in the 2016 election.

A Kushner Cos. spokeswoman said that the firm is cooperating in the review of what it called a “routine” transaction.

Fourteen $ an Hour and the Trumps Laugh All the Way to Bedlam 

Here’s a job announcement, for Portland, Oregon, one I am qualified to perform beyond simple basic skills and experience. This is for $14 an hour!! This is what I have always pointed out in my articles that all big ideas and concepts can be tied to the microcosm — this job for hip, up and coming, California dreaming Portland, Oregon, with a housing crisis, homeless crisis and drug abuse crisis. Get it? A non-profit seeking someone with a master’s, helping disabled people get on their feet, the entire suite of services, and it’s FOURTEEN dollars an hour! In my day and age . . . .!!!

1) An understanding of workforce development programs, policies, and initiatives
2) An understanding of the process by which individuals:
a) define career goals,
b) prepare for, find and retain employment,
and c) build skills for career advancement
3) An understanding of labor market resources and how to access them
4) An understanding of the special employment needs of diverse groups and the ability to make appropriate adaptations to address these needs
5) An ability to both provide and facilitate good customer service
6) An ability to develop and track program outcomes and task analysis
7) An understanding of basic computer technology used in job development

Some Major Responsibilities Include:

• Work side-by-side with a newly placed customer at a job site
• Analyze the job, and break into manageable components
• Identify and solve problems before they become crises for the customer, employer or co-worker
• Teach effective job retaining skills
• Use the least intrusive methods possible on the job
• Gradually reduce the time spent at the job site as the customer becomes better adjusted and more independent • Work closely with local school district

Qualifications: • 1) EOP Training, and 2) APSE (or ARCE) Certification or DHS approved equivalent (can be completed within 6 months of hire)

• At least 1 year of experience working with individuals who experience disability
• At least 1 year of experience working or educated in a specific field that includes supervisory and/or training duties and/or marketing and/or sales
• First Aid certification
• Pass a criminal history background check
• Approved driving record
• Self-motivated, self-directed
• Proficient communication skills, written and oral (i.e., interpersonal skills)
• Ability to work in collaboration with TCP staff, local and state agencies, and businesses

Oh, so, let’s get back to that 100 years down the line, when most people will be unemployed, in clinics as harvest factories, or at-home care facilities, organs harvested, and each blink of the eye counted as a tax. How those Bezos sort of people love killing us with their disruptive technologies of obsolescence:

McKinsey counted more than 70 entire professions in which at least 90% of activities can be automated, ranging from mail clerks to ophthalmic lab technicians, tire-repairers, butchers, food preparers and bakers.

But many Americans don’t think they need to adapt, with 80% saying their job definitely or probably will exist in its current form in 50 years, according to the Pew Research Center.

“We often think about automation as applying to front-line, low-wage, low-skill activities and jobs — and what we’ve discovered is there are some activities that are high-wage, high-skill that are actually very susceptible to automation,” said Michael Chui, a McKinsey Global Institute partner in San Francisco who studies the issue. “Almost every job in the economy has a significant percentage of activities that can be automated.”

The professional service robot industry expects to sell a third more units from 2016 through 2019 — 333,200 in all — than it sold in the past 17 years, says the International Federation of Robotics. They could be used in place of professionals, whether it’s medicine, agriculture, hospitality or even the supermarket down the street.

Consider: —Restaurant workers. In fast-food, San Francisco-based Momentum Machines already makes a hamburger-flipping robot. Several chains are gradually introducing self-ordering stations.

Shelf stockers. In stores, San Francisco-based Bossa Nova Robotics has developed a robot that is checking shelf inventory in a test at Lowe’s, the home-improvement chain.

Journalists. Automated Insights has created a software suite called WordSmith that writes thousands of automated stories every month, including Minor League Baseball game accounts and earnings reports for the Associated Press, basketball game recaps for Yahoo! Sports and financial content for dozens of other clients.

Bookkeepers. Accountants — perceived as a steady 9-to-5 job with an average salary of $67,190 in 2015, according to the Bureau of Labor Statistics — are poised for a total makeover. About one in five people in the finance and insurance sector primarily perform data processing — and about 85% of that work can be automated, McKinsey estimates

Love as Antidote?

Enough said about the coming year, the coming decade, this century. Automatons, and disease. Am I supposed to end the year, 2017, with hope, with something?

Try this out for size:

Do not be dismayed by the brokenness of the world.
All things break. And all things can be mended.
Not with time, as they say, but with intention.
So go. Love intentionally, extravagantly, unconditionally.
The broken world waits in darkness for the light that is you.

— L.R. Knost

Preparing For The Coming Transformation

The year 2017 has been another active year for people fighting on a wide range of fronts. The Trump administration has brought many issues that have existed for years out into the open where they are more difficult to deny – racism, colonialism, imperialism, capitalism and patriarchy and the crises they create. More people are activated and greater connections between the fronts of struggle are creating a movement of movements. These are positive developments, bright spots in difficult times. They are the seeds of transformative change that we can nurture and grow if we act with intention.

The crises we face have been building for decades. They are reaching a point of extremism that will create an even greater response by people. What that response is, where it goes and what it accomplishes are up to all of us to determine.

The overreach by the plutocrats in power may bring a boomerang effect, energizing the population to take action and demand the changes we desire and need. We may reach a moment, a turning point, when the movements for economic, racial and environmental justice, as well as peace, can win significant changes, beyond the comfort zones of those in power. The boomerang will only occur if we educate and organize for it, and its size will also depend on us.

We have no illusions that this work will be easy. Those in power will do all that they can to derail, misdirect and suppress our efforts. Our tasks are to resist their tactics and maintain our focus on our end goals. This requires understanding how social movements succeed and being clear in our demands for transformative change.

We see several key areas where people are energized to work for changes that are opportunities to expand the current movement of movements into a powerful force that will overcome the stranglehold by the corporate duopoly parties. This is the first of two articles to help prepare us for the work ahead. In the second article, we will describe these key issues in greater depth and what we need to do to create the transformative moment we need.

The Long Development of this Transformative Era

The era of transformation has been developing over many decades. If we view it through presidential administrations, a frame of reference used commonly in the United States, we see that both major parties represent the interests of the wealthy and corporations, not the majority of the population, and that they effectively divide and weaken popular movements.

After Bill Clinton’s administration loosened regulations on finance, setting the stage for the 2008 crash, brought in trade agreements like NAFTA and weakened the social safety net, and George W. Bush’s administration expanded military aggression around the world and the domestic security state, as well as further enriching the wealthy, people were hungry for change. Barack Obama effectively built his ‘hope and change’ campaign around this desire, vaguely but eloquently promising what people wanted. His words allowed people to imagine that a transformation was coming.

Obama raised expectations, but he did not fulfill them. His cabinet was made up of Wall Streeters from Citigroup. He continued and expanded foreign wars, the wealth divide grew and tens of millions went without healthcare even after his private insurance-based Affordable Care Act became law. The frustration that had been building during the Clinton-Bush years burst onto the scene with Occupy, Fight for $15, Black Lives Matter, debt resistance, immigration reform, Idle No More and other fronts of struggle.

After Occupy, the media told us the people’s struggle went away, but, as we show in the daily movement news reporting on Popular Resistance, all of those struggles expanded. The corporate media’s failure to cover the national mass protest movement does not change reality — the resistance movements continue, are growing and are impacting popular opinion and policies.

Where We Are and What We Must Do

In 2013, we wrote a two part series describing the status of the movement and what the movement must do. In the December 2013 article, “Closer than We Think” we described the eight stages of social movements, an analysis by long-time civil rights and anti-nuclear activist, Bill Moyer. The movement had gone through the “Take-Off”, Stage Four of the social movement when encampments covered the country, seemingly overnight, and brought the issues of the wealth divide, racist policing, climate change, student debt and other issues to the forefront. The meme of the 99% against the 1% illustrated the conflict between people power and the power holders. We passed through Stage Five, “the Landing,” where the encampments disappeared and people asked, “What happened? Did we accomplish anything?”

Our second article in January 2014 focused on the tasks of the movement and explained that we were now in Stage Six, the final stage before victory. This is a long-term phase that could last years where the goal is to build broad national consensus of 70% to 90% support among the public for the goals of the movement and to mobilize people as effective change agents.

During this phase, the contradictions in the system become more obvious to people. For example, as the United States and world experience the harsh realities of climate change in massive storms, widespread fires, droughts and famine, the government’s response is inadequate. When Obama was president his administration was an anchor on the world, weakening international climate and trade agreements. His secretary of state, Hillary Clinton, used her influence to promote fracking. The Trump administration has gone further, denying climate change, erasing words and phrases that describe it from government reports, silencing scientists and undermining the inadequate steps made to confront climate change that were put in place in the Obama era.

The inadequate response to the climate crisis is one example of many multiple crisis situations that exist in which the government does not respond, responds inadequately or even takes actions that make these crises worse. In some cases, the power holders go too far, as we see in the recently passed tax bill, designed to protect the donor class, and in abusive police practices as the racism and violence of our society are exposed. The overreaction in the end helps build the national consensus we need to achieve our objectives.

The contradictions arise because there are obvious solutions to each crisis we face, but those in power refuse to put them in place. National consensus for these solutions grows during this phase, and the failures of the money-dominated political system become more obvious.

As a result, a transformative moment is building now. It can be seen in the 2016 presidential campaigns where people showed frustration with both corporate parties. Electoral challenges inside the parties showed populist anger based on hundreds of millions of people struggling every day to survive in an unfair economy. Donald Trump built his campaign around economic insecurity from the right and Senator Bernie Sanders did the same from the left. Now, Trump is betraying conservative populists with economic and healthcare policies that add to their insecurity and with the wealthiest cabinet in US history serving the interests of Wall Street, the self-interest of elected officials and adding to the distrust of the DC duopoly. The realization of Trump’s betrayal is only beginning to show itself in the lives of those who supported him.

The Democrats have been struggling to come to grips with how they lost to Donald Trump. A large part of the party is in denial, blaming their failures on the fiction of Russiagate — claiming the Russians were responsible for their loss rather than a widely-disliked candidate who represented Wall Street and war for her entire career. The Democrats continue their internal divide: the divide between Wall Street donors who want the party to serve their interests and voters who want the party to represent their interests. Invariably the Democrats will be unable to turn their backs on their donors and will nominate a fake change agent who will spout popular progressive rhetoric and dash those hopes when in office.

It is critical for us to step out of the limitations of two and four year election cycles and recognize that social transformation does not arise by electing the perceived least evil. Social transformation occurs through a people-powered movement of movements that arises over decades of struggle and shifts the political reality so that the power holders must respond.

Issues Driving the Backlash 

There will be a backlash. It will look to the Democrats like a backlash against Trump’s extremism, but it will be broader. It will be a backlash against the extremism of the corporate duopoly. Their bi-partisan policies always put the wealthy and big business interests first. The boomerang will be built on the conflict between the necessities of the people and the planet vs. the greed of the wealthy.

There are a number of fundamental issues that are priorities for large majorities of the population, around which people are mobilizing and where national consensus is developing. They have the potential to connect our movements into a powerful force.

One of our tasks is to develop clear demands so that we cannot be side-tracked by false or partial solutions. If these fundamental issues are addressed through bold and transformative solutions, they will shift the political culture and our political system in a significant way towards the people-powered future we need. They will create change at the root causes of the crises we face.

These transformative issues include economic inequality, lack of access to health care, ensuring Internet freedom and a people’s media, confronting climate change and environmental disasters, ending US Empire and militarism at home, and addressing domestic human rights abuses, whether it is exploitation of workers, mass incarceration, racism or disrespect for Indigenous sovereignty. Throughout all of these issues there is a thread of racial injustice so our struggles must not just solidify around class issues, but must also solidify around the necessity of ending systemic racism.

We will address these issues and next steps in greater depth in the first newsletter of the new year. We wish all of you a peaceful week and hope you are able to spend time with loved ones. We are committed to being with you through the struggle and to doing all we can to stop the machine and create a new world.