The US Economy Has Not Recovered And Will Not Recover

Submitted by Dr. Paul Craig Roberts – Institute for Public Economy

The US economy died when middle class jobs were offshored and when the financial system was deregulated.

Jobs offshoring benefitted corporate executives and shareholders, because lower labor and compliance costs resulted in higher profits. These profits flowed through to shareholders in the form of capital gains and to executives in the form of “performance bonuses.” Wall Street benefitted from the bull market generated by higher profits.

However, jobs offshoring also offshored US GDP and consumer purchasing power. Despite promises of a “New Economy” and better jobs, the replacement jobs have been increasingly part-time, lowly-paid jobs in domestic services, such as retail clerks, waitresses and bartenders.

The offshoring of US manufacturing and professional service jobs to Asia stopped the growth of consumer demand in the US, decimated the middle class, and left insufficient employment for college graduates to be able to service their student loans. The ladders of upward mobility that had made the United States an “opportunity society” were taken down in the interest of higher short-term profits.

Without growth in consumer incomes to drive the economy, the Federal Reserve under Alan Greenspan substituted the growth in consumer debt to take the place of the missing growth in consumer income. Under the Greenspan regime, Americans’ stagnant and declining incomes were augmented with the ability to spend on credit. One sourcre of this credit was the rise in housing prices that the Federal Reserves low inerest rate policy made possible. Consumers could refinance their now higher-valued home at lower interest rates and take out the “equity” and spend it.

The debt expansion, tied heavily to housing mortgages, came to a halt when the fraud perpetrated by a deregulated financial system crashed the real estate and stock markets. The bailout of the guilty imposed further costs on the very people that the guilty had victimized.

The Neoconservatives Are Brewing A Wider War In Syria

Submitted by Dr. Paul Craig Roberts – Institute for Public Economy

While you are enjoying your Sunday, the insane neoconservatives who control Western foreign policy and their Turkish and Saudi Arabian vassals might be preparing the end of the world.

Any person who relies on Western media has no accurate idea of what is happening in Syria.
I will provide a brief summary and then send you to two detailed accounts.

The neoconservative Obama regime set-up the Syrian government headed by Assad for overthrow. A long propaganda campaign conducted in Washington’s behalf by the Western media portrayed the democratically-elected Assad as a “brutal dictator who uses chemical weapons against his own people.” Washington organized and supported a front group posing as democrats and involved them in conflict with the Syrian military.

With conflict underway, Washington began predicting that something had to be done to overthrow Assad before he used “chemical weapons against his own people.” Obama turned these predictions into a “red line.” When Assad used chemical weapons against Washington’s puppets, the US would invade Syria.

With the “red line” drawn, a false flag chemical weapons attack was staged, or an accident occurred, that Washington used to say that Assad, despite the US warning, had crossed the “red line.”

Preparations for an invasion began, but hit two roadblocks. David Cameron, Washington’s puppet prime minister of Great Britain was unable to deliver British support for the invasion as the Parliament voted it down. This left Washington uncovered and vulnerable to the charge of naked aggression, a war crime.

Russian diplomacy threw up the other road block by securing the removal of all chemical weapons from Syria.

Their invasion plan frustrated, the neoconservatives sent the jihadists they had used to overthrow Gaddafi in Libya to overthrow Assad. Initially known as ISIS, then ISIL, then the Islamist State, and now Daesh, a term that can be interpreted as an insult. Perhaps the intention of the name changes is to keep the Western public thoroughly confused about who is who and what is what.

President Kennedy and His Brother Robert Kennedy Were Murdered By The Military-Security Complex

Submitted by Dr. Paul Craig Roberts – Institute for Public Economy

Presstitute Media, such as the UK Telegraph, spend a lot of energy debunking exposes of government conspiracies. For example, the thousands of highrise architects, structural engineers, physicists, nano-chemists, demolition experts, first responders, military and civilian pilots, and former government officials who have provided vast evidence that the official story of 9/11 is a made-up fairy tale at odds with all evidence and the laws of physics are dismissed by presstitutes as “conspiracy theorists.”

Similarly, those, such as James W. Douglass, who have proven beyond all doubt that President John F. Kennedy was not assassinated by Oswald but by his own paranoid anti-communist military-security complex, are dismissed as conspiracy theorists.

The 9/11 Commission Report and the Warren Commission Report were cover-ups. VP Dick Cheney and the neoconservatives he sponsored needed a “new Pearl Harbor” in order to begin their military assaults on the Middle Eastern countries that had independent foreign policies instead of being US/Israeli vassals. 9/11 was their orchestrated “new Pearl Harbor,” and this fact had to be covered up when 9/11 families persisted in their demands for an investigation and could not be bought off for large sums of money.

Similarly, the Warren Commission had no choice but to cover up that a popular American president, John F. Kennedy, had been murdered by the Joint Chiefs of Staff, the CIA, and the Secret Service, because he was believed by paranoid anti-communists to be “soft on communism” and thereby a threat to the security of the United States. The cold war was on, and the Warren Commission could not hold those responsible accountable without destroying the public’s confidence in the American military and security services.

Nevertheless everyone aware of the forged case against Oswald knew what had happened. One of these people was Attorney General Robert Kennedy, JFK’s brother.

Are Americans Too Insouciant To Survive?

Submitted by Dr. Paul Craig Roberts – Institute for Public Economy

When one looks at the deplorable state of the world, one cannot help but wonder at the insouciance of the American people. Where are they? Do they exist or are they a myth? Have they been put to sleep by an evil demon? Are they so lost in The Matrix that they cannot get out?

Ever since Clinton’s second term the US has been consistently acting internationally and domestically as a criminal, disregarding its own laws, international laws, the sovereignty of other countries, and the US Constitution. A worse criminal government has never existed. Yet, Americans remain subservient to the criminals that they have placed in power over themselves.

According to polls, Hillary Clinton and Senator Bernie Sanders are splitting the Democratic vote 50-50 as preferred Democratic presidential candidate. This is extraordinary.

Hillary Clinton represents the interests of Wall Street and the mega-banks, the Israel Lobby, and the interests of the military/security complex. These interests are totally opposed to the interests of the American people.

In his book, What’s the Matter with Kansas, Thomas Frank raised the question of why Americans vote against their own interests? Why do Americans go to the voting both and do themselves in?

Whether you agree with Thomas Frank’s answer or not, Americans do, on a regular basis, harm themselves by voting for people who are agents of vested interests diametrically opposed to the interests of American citizens.

How is it possible, if Democrats are informed people, that half of them prefer Hillary Clinton? Between February 2001 and May 2015 Bill and Hillary collected $153 million in speaking fees. The fees averaged $210,795 per speech. http://www.commondreams.org/news/2016/02/06/no-artful-smear-clintons-paid-153-million-speaking-fees-analysis-shows

I can remember when Bill and Hillary were in public office when their speeches were free. No one wanted to listen to them when the speeches were free. Clearly, Bill is being paid off for his past services to the powerful interest groups that control the United States, and Hillary is being paid off for her future service to the same groups.

How then is it possible that half of Democrats would prefer Hillary? Is it because she is a woman and women want a woman president more than they want their civil liberties, peace, and employment for themselves, their spouses and their children?

Or is it because, given the presstitute character of the American media, the people haven’t a clue?

Are The Payroll Jobs Reports Merely Propaganda Statements?

Submitted by Dr. Paul Craig Roberts – Institute for Public Economy

US economics statistics are so screwed up that they do not provide an accurate picture.

Consider the latest monthly payroll jobs report. According to the report, in January 151,000 new jobs were created. Where are these jobs? According to the report, 69% of the new jobs are accounted for by retail employment and waitresses and bartenders. If we add in health care and social assistance, the entirety of the new jobs are accounted for. This is not the employment picture of a First World economy.

According to the report, in January the retail sector added 57,700 jobs. Considering that January is the month that followed a disappointing Christmas December, do you think retailers added 57,700 employees? Such a large increase in retail employment suggests an expected rise in sales, but transportation and warehousing lost 20,300 jobs and wholesale trade added only 8,800.

Perhaps it is mistaken to think that employment in these sectors should move together. Possibly the retail jobs, if they are real, are part-time jobs replacing a smaller number of terminated full-time jobs in order that employers can avoid benefits costs. If this is the case, then the retail jobs are bad news, not good news.

The reported unemployment rate of 4.9% is misleading as it does not count discouraged workers. When discouraged workers are added, the actual rate of US unemployment is about 23%, a number more consistent with the decline in the labor force participation rate. In January 2006 the labor force participation rate was 66%. In January 2016 the labor force participation rate is 62.7%.

The government has a second official unemployment rate that counts short-term discouraged workers (discouraged for less than one year). That rate, known as U-6, is 10%, twice the “headline rate” which is always the U-3 measure that excludes all discouraged workers not currently looking for a job.

In his reports John Williams (shadowstats.com) explains that the jobs reported can be an artifact of seasonal adjustments. Perhaps a simple way of seeing the influence of seasonal adjustments is to compare the not seasonally adjusted jobs numbers for December 2015 and January 2016. These numbers are 144,112,000 jobs in December and 141,123,000 jobs in January, a decline of 2,989,000. However, with seasonal adjustments the January number rises to 143,288,000 and the December number falls to 143,137,000, producing a January jobs gain of 151,000.

There Is No Freedom Without Truth

Submitted by Dr. Paul Craig Roberts – Institute for Public Economy

“This conjunction of an immense military establishment and a large arms industry is new in the American experience. The total influence — economic, political, even spiritual — is felt in every city, every statehouse, every office of the federal government. We recognize the imperative need for this development. Yet we must not fail to comprehend its grave implications. Our toil, resources and livelihood are all involved; so is the very structure of our society. In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military–industrial complex. The potential for the disastrous rise of misplaced power exists, and will persist. We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted. Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals so that security and liberty may prosper together.” — President Dwight D. Eisenhower

Dwight D. Eisenhower was a five-star general in charge of the Normandy Invasion and a popular two-term President of the United States. Today he would be called a “conspiracy theorist.”

Were Ike to be issuing his warning from the White House today, conservative Republicans like Senators Lindsey Graham (R-SC) and Marco Rubio (R-FL) would be screaming at Ike for impugning the motives of “the patriotic industry that protects our freedom.”

Neoconservatives such as William Kristol would be demanding to know why President Eisenhower was issuing warnings about our own military-industrial complex instead of warning about the threat presented by the Soviet military.

The presstitute media would be implying that Ike was going a bit senile in his old age, a tactic the presstitutes used against President Reagan as he struggled to end stagflation and the Cold War.

By January 17, 1961, when Eisenhower issued his warning in his farewell address to the American People, it was already too late. Cold Warriors had had their hooks into the American taxpayer for 15 years after the end of WW II, and the military-industrial complex had replaced “mom and apple pie” as the most venerated and entrenched US interest. The Dulles brothers ran the State Department and CIA and overthrew governments at will. (Read The Brothers http://www.amazon.com/Brothers-Foster-Dulles-Allen-Secret/dp/1250053129/ref=sr_1_1?s=books&ie=UTF8&qid=1454270231&sr=1-1&keywords=The+Brothers )

Washington Is The Greatest Threat To World Order

Submitted by Dr. Paul Craig Roberts – Institute for Public Economy

Sergei Naryshkin, the Chairman of the Russian Parliament says that the growing tensions in international relations result from Washington’s lack of morals and violations of international law:

“The increasing crisis in international relations is rooted in Western nations’ lack of morals and their reluctance to observe basic norms of international law,” State Duma chairman Sergey Naryshkin has said.
“The tensions in the international situation have seriously increased over the past few years and this happens primarily because a group of Western nations, first of all, the United States of America, are neglecting the major principles of international law or interpret them freely,” Interfax quoted the Russian parliamentary leader as saying at a meeting with law students on Monday.
“I would be more direct – it happens due to the lack of morals,” Naryshkin added. He emphasized that the argument of “American exceptionalism” often used by many US politicians was against not only the legal principle of equality of all nations and peoples, but also contradicted basic human morality.
READ MORE: We will never play by US rules – State Duma chief
The Duma speaker also said that at the moment he considered Russia as the key protector of the basic foundations of international law. He noted that as one of the victor nations in World War II, Russia played a decisive role in introducing international law and that it had paid a great price for this achievement.
In May 2015, Naryshkin published an article in the Rossiiskaya Gazeta daily in which he urged European politicians to stop heeding advice from the United States and to start working on common Eurasian economic interests with Russia. If this doesn’t happen, Washington will eventually destroy the EU’s economic sovereignty by skillful manipulation of WTO mechanisms, Naryshkin wrote.
READ MORE: Europe should overcome US pressure, resume cooperation with Russia – Duma chief
Naryshkin has also backed the idea of a future merger between the Russian Federation and the European Union, and in April 2015 he suggested immediately starting consultations. The idea of the possibility of such a merger originally came from Czech President Milos Zeman, who confessed to having a dream that one day Russia would join the EU.” https://www.rt.com/politics/330860-duma-speaker-blames-west-for/

Naryshkin has a good point. Until the advent of the “war on terror,” torture was a rarely used tool of post-WW II governments in Europe and the US. But in the 21st century illegal torture became so commonplace that a magazine, Torture, was created to expose and combat torture. The magazine’s editorial board consists of Nilantha Ilangamuwa, Lauren Glenmere, and Eric Bailey.

The West Is Traveling The Road To Economic Ruin

Submitted by Dr. Paul Craig Roberts – Institute for Public Economy

Michael Hudson is the best economist in the world. Indeed, I could almost say that he is the only economist in the world. Almost all of the rest are neoliberals, who are not economists but shills for financial interests.

If you have not heard of Michael Hudson it merely shows the power of the Matrix. Hudson should have won several Nobel prizes in economics, but he will never get one.

Hudson did not intend to be an economist. At the University of Chicago, which had a leading economics faculty, Hudson studied music and cultural history. He went to New York City to work in publishing. He thought he could set out on his own when he was assigned rights to the writings and archives of George Lukacs and Leon Trotsky, but publishing houses were not interested in the work of two Jewish Marxists who had a significant impact on the 20th century.

Friendships connected Hudson to a former economist for General Electric who taught him the flow of funds through the economic system and explained how crises develop when debt outgrows the economy. Hooked, Hudson enrolled in the economics graduate program at NYU and took a job in the financial sector calculating how savings were recycled into new mortgage loans.

Hudson learned more economics from his work experience than from his Ph.D. courses. On Wall Street he learned how bank lending inflates land prices and, thereby, interest payments to the financial sector. The more banks lend, the higher real estate prices rise, thus encouraging more bank lending. As mortgage debt service rises, more of household income and more of the rental value of real estate are paid to the financial sector. When the imbalance becomes too large, the bubble bursts. Despite its importance, the analysis of land rent and property valuation was not part of his Ph.D. studies in economics.

The West Is Reduced To Looting Itself

Submitted by Dr. Paul Craig Roberts – Institute for Public Economy

Myself, Michael Hudson, John Perkins, and a few others have reported the multi-pronged looting of peoples by Western economic institutions, principally the big New York Banks with the aid of the International Monetary Fund (IMF).

Third World countries were and are looted by being inticed into development plans for electrification or some such purpose. The gullible and trusting governments are told that they can make their countries rich by taking out foreign loans to implement a Western-presented development plan, with the result being sufficient tax revenues from economic development to service the foreign loan.

Seldom, if ever, does this happen. What happens is that the plan results in the country becoming indebted to the limit and beyond of its foreign currency earnings. When the country is unable to service the development loan, the creditors send the IMF to tell the indebted government that the IMF will protect the government’s credit rating by lending it the money to pay its bank creditors. However, the conditions are that the government take necessary austerity measures so that the government can repay the IMF. These measures are to curtail public services and the government sector, reduce public pensions, and sell national resources to foreigners. The money saved by reduced social benefits and raised by selling off the country’s assets to foreigners serves to repay the IMF.

This is the way the West has historically looted Third World countries. If a country’s president is reluctant to enter into such a deal, he is simply paid bribes, as the Greek governments were, to go along with the looting of the country the president pretends to represent.

When this method of looting became exhausted, the West bought up agricultural lands and pushed a policy on Third World countries of abandoning food self-sufficiency and producing one or two crops for export earnings. This policy makes Third World populations dependent on food imports from the West. Typically the export earnings are drained off by corrupt governments or by foreign purchasers who pay little while the foreigners selling food charge much. Thus, self-sufficiency is transformed into indebtedness.

With the entire Third World now exploited to the limits possible, the West has turned to looting its own. Ireland has been looted, and the looting of Greece and Portugal is so severe that it has forced large numbers of young women into prostitution. But this doesn’t bother the Western conscience.

Red Ponzi Ticking

Submitted by Dr. Paul Craig Roberts – Institute for Public Economy

There is something rotten in the state of Denmark. And we are not talking just about the hapless socialist utopia on the Jutland Peninsula——even if it does strip assets from homeless refugees, charge savers 75 basis points for the deposit privilege and allocate nearly 60% of its GDP to the Welfare State and its untoward ministrations.

In fact, the rot is planetary. There is unaccountable, implausible, whacko-world stuff going on everywhere, but the frightful part is that most of it goes unremarked or is viewed as par for the course by the mainstream narrative.

The topic at hand is the looming implosion of China’s Red Ponzi; and, more specifically, the preposterous Wall Street/Washington assumption that it’s just another really big economy that overdid the “growth” thing and is now looking to Beijing’s firm hand to effect a smooth transition. That is, an orderly migration from a manufacturing, export and fixed investment boom-land to a pleasant new regime of shopping, motoring, and mass consumption.

Would that it could. But China is not a $10 trillion growth miracle with transition challenges; it is a quasi-totalitarian nation gone mad digging, building, borrowing, spending and speculating in a magnitude that has no historical parallel.

So doing, It has fashioned itself into an incendiary volcano of unpayable debt and wasteful, crazy-ass overinvestment in everything.  It cannot be slowed, stabilized or transitioned by edicts and new plans from the comrades in Beijing. It is the greatest economic trainwreck in human history barreling toward a bridgeless chasm.

And that proposition makes all the difference in the world. If China goes down hard the global economy cannot avoid a thundering financial and macroeconomic dislocation. And not just because China accounts for 17% of the world’s $80 trillion of GDP or that it has been the planet’s growth engine most of this century.

Presidential Crimes Then And Now

Submitted by Dr. Paul Craig Roberts – Institute for Public Economy

Not much remains of the once vibrant American left-wing. Among the brainwashed remnants there is such a hatred of Richard Nixon and Ronald Reagan that the commitment of these two presidents to ending dangerous military rivalries is unrecognized. Whenever I write about the illegal invasions of other countries launched by Clinton, George W. Bush, and Obama, leftists point to Chile, Nicaragua and Grenada and say that nothing has changed. But a great deal has changed. In the 1970s and 1980s Nixon and Reagan focused on reducing Cold War tensions. Courageously, Nixon negotiated nuclear arms limitation agreements with the Soviet Union and opened to China, and Reagan negotiated with Gorbachev the end of the dangerous Cold War.

Beginning with the Clinton regime, the neoconservative doctrine of the US as the Uni-power exercising hegemony over the world has resurrected tensions between nuclear-armed powers. Clinton trashed the word of the Reagan and George H.W. Bush administrations and expanded NATO throughout Eastern Europe and brought the military alliance to Russia’s border. The George W. Bush regime withdrew from the anti-ballistic missile treaty, revised US war doctrine to permit pre-emptive nuclear attack, and negotiated with Washington’s East European vassals to put anti-ballistic missiles on Russia’s borders in an effort to neutralize Russia’s nuclear deterrent, thus bringing major security problems to Russia. The Obama regime staged a coup against a government allied with Russia in Ukraine, traditionally a part of Russia, and imposed a Russophobia government as Washington’s vassal. Turning to China, Washington announced the “pivot to Asia” with the purpose of controlling shipping in the South China Sea. Additionally, the Clinton, George W. Bush, and Obama regimes fomented wars across a wide swath of the planet from Yugoslavia and Serbia through the Middle East and Africa to South Ossetia and now in Ukraine.

The neoconservative ideology rose from the post-Reagan collapse of the Soviet Union. The doctrine met the need of the US military/security complex for a new enemy in order to avoid downsizing. Washington’s pursuit of empire is a principal danger to life itself for everyone on the planet.

Unlike Clinton, George W. Bush, and Obama, Nixon and Reagan went against the military/security complex. Nixon opened to China and made arms reduction agreements with the Soviets. Reagan negotiated with Gorbachev the end of the Cold War. The military/security complex was displeased with these presidential initiatives. Both left and right accused Nixon and Reagan of nefarious machinations. Right-wing Republicans said that Nixon and Kissinger were selling America out to the communists and that the scheming Soviets would take advantage of Reagan, the old movie actor. “Communists,” we were assured, “only understand force.”

They Tell Us Nothing But Lies

Submitted by Dr. Paul Craig Roberts – Institute for Public Economy

A British governmental inquiry has concluded that Russian President Putin “probably approved” the killing of Alexander Litvinenko by polonium poisoning.http://www.informationclearinghouse.info/article44002.htm

As no evidence is provided for the surmise, we can conclude that this report on an unresolved event that happened a decade ago is part of the lies being used by the West to demonize Putin, just as the lies about MH-17 and “the Russian invasion of Ukraine.”

Litvinenko’s brother and father say that they “are sure that the Russian authorities are not involved. It’s all a set-up to put pressure on the Russian government.” Maksim Litvinenko dismisses the British report as a smear on Putin. https://www.rt.com/news/329804-litvinenko-brother-britain-murder/

And that is what it is.

“Our” government not only lies to us about the economy and the wars, it also lies about literally everything. For example, do you remember the Rwanda genocide? The story we were told is the exact opposite of the truth. Today the perpetrator of the genocide, Paul Kagame, is the President of Rwanda. http://www.globalresearch.ca/rwanda-the-enduring-lies-a-project-censored-interview-with-professor-ed-herman/5502707

Western governments and media have covered up his crimes and praise him as a great humanitarian who has healed Rwanda and is totally supported by the people. The truth is that Kagame has proved himself a worse totalitarian that Hitler, Stalin, and Poll Pot combined. He has turned Rwanda into a fear-ridden psychological prison. Anjan Sundaram, a journalist who ran a journalism training school in Rwanda, describes in detail Kagame’s destruction of all truth and all independent thought in Rwanda. In his just published book by Doubleday, Bad News: Last Journalists In A Dictatorship, Sundaram gives the gruesome details of how Rwandans, with the complicity of the West, have been brought more psychologically under control than Winston Smith in George Orwell’s 1984.