Posts Tagged ‘economics’

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

The Military Industrial Complex Strikes Again: War Spending Will Bankrupt America
Posted By Luther Blissett By John W. Whitehead: The Rutherford Institute 03/06/18: https://desultoryheroics.com/2018/03/06/the-military-industrial-complex-strikes-again-war-spending-will-bankrupt-america/ OR: https://wordpress.com/post/randrewohge.wordpress.com/3574

“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

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 your 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 anytime 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 Apr. 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.”

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via Ecuador Endangered

Ecuador Endangered
Posted By Luther Blissett By John Seed 03/05/18: https://desultoryheroics.com/2018/03/05/ecuador-endangered/ Or: https://wordpress.com/post/randrewohge.wordpress.com/3569

The tropical Andes of Ecuador are at the top of the world list of biodiversity hotspots in terms of vertebrate species, endemic vertebrates, and endemic plants.

Ecuador has more orchid and hummingbird species than Brazil, which is 32 times larger, and more diversity than the entire USA.

In the last year, the Ecuadorean government has quietly granted mining concessions to over 1.7 million hectares (4.25 million acres) of forest reserves and indigenous territories.

These were awarded to transnational corporations in closed-door deals without public knowledge or consent.

This is in direct violation of Ecuadorean law and international treaties, and will decimate headwater ecosystems and biodiversity hotspots of global significance.

However, Ecuadorean groups think there is little chance of stopping the concessions using the law unless there is a groundswell of opposition from Ecuadorean society and strong expressions of international concern.

The Vice President of Ecuador, who acted as Coordinating Director for the office of ‘Strategic Sectors’, which promoted and negotiated these concessions, was jailed for 6 years for corruption.

However, this has not stopped the huge giveaway of pristine land to mining companies.

From the cloud forests in the Andes to the indigenous territories in the headwaters of the Amazon, the Ecuadorean government has covertly granted these mining concessions to multinational mining companies from China, Australia, Canada, and Chile, amongst others.

The first country in the world to get the rights of Nature or Pachamama written into its constitution is now ignoring that commitment.

They’ve been here before. In the 80’s and 90’s Chevron-Texaco dumped 18 billion gallons of crude oil there in the biggest rainforest petroleum spill in history.

This poisoned the water of tens of thousands of people and has done irreparable damage to ecosystems.

Now 14% of the country has been concessioned to mining interests.

This includes a million hectares of indigenous land, half of all the territories of the Shuar in the Amazon and three-quarters of the territory of the Awa in the Andes.

Please sign the petition and contribute to the crowdfund which will help Ecuadorean civil society’s campaign to have these concessions rescinded.

As founder and director of the Rainforest Information Centre (RIC), I’ve had a long history of involvement with Ecuador’s rainforests.

Back in the late ‘80’s our volunteers initiated numerous projects in the country and one of these, the creation of the Los Cedros Biological Reserve was helped with a substantial grant from the Australian Government aid agency, AusAID.

Los Cedros lies within the Tropical Andes Hotspot, in the country’s northwest. Los Cedros consists of nearly 7000 hectares of premontane and lower montane wet tropical and cloud forest teeming with rare, endangered and endemic species and is a crucial southern buffer zone for the quarter-million hectare Cotocachi-Cayapas Ecological Reserve.

Little wonder that scientists from around the world rallied to the defense of Los Cedros.

In 2016 a press release from a Canadian mining company alerted us to the fact that they had somehow acquired a mining concession over Los Cedros!

We hired a couple of Ecuadorean researchers and it slowly dawned on us that Los Cedros was only one of 41 “Bosques Protectores” (protected forests) which had been secretly concessioned.

For example, nearly all of the 311,500 hectare Bosque Protector “Kutuku-Shaimi”, where 5000 Shuar families live, has been concessioned. In November 2017, RIC published a report by Bitty Roy, Professor of Ecology from Oregon State University and her co-workers, mapping the full extent of the horror that is being planned.

Although many of these concessions are for exploration, the mining industry anticipates an eight-fold growth in investment to $8 billion by 2021 due to a “revised regulatory framework” much to the jubilation of the mining companies.

Granting mineral concessions in reserves means that these reserves aren’t actually protected any longer as, if profitable deposits are found, the reserves will be mined and destroyed.

In Ecuador, civil society is mobilising and has asked their recently elected government to prohibit industrial mining “in water sources and water recharge areas, in the national system of protected areas, in special areas for conservation, in protected forests and fragile ecosystems”.

The indigenous peoples have been fighting against mining inside Ecuador for over a decade.

Governments have persecuted more than 200 indigenous activists using the countries anti-terrorism laws to hand out stiff prison sentences to indigenous people who openly speak out against the destruction of their territories.

Fortunately, the new government has signalled an openness to hear indigenous and civil society’s concerns, not expressed by the previous administration.

In December 2017, a large delegation of indigenous people marched on Quito and President Moreno promised no NEW oil and mining concessions, and on 31 January 2018, Ecuador’s Mining Minister resigned a few days after Indigenous and environmental groups demanded he step down during a demonstration.

On 31 January, The Confederation of Indigenous Nationalities of Ecuador, CONAIE, announced their support for the platform shared by the rest of civil society involved in the anti-mining work.

Then on 15 February CONAIE called on the government to “declare Ecuador free of industrial metal-mining”, a somewhat more radical demand than that of the rest of civil society.

But we will need a huge international outcry to rescind the existing concessions: many billions of dollars of mining company profits versus some of the most biologically diverse ecosystems on Earth and the hundreds of local communities and indigenous peoples who depend on them.

PLEASE SIGN THE PETITION TO SUPPORT THEIR DEMANDS: http://www.rainforestinformationcentre.org/save_ecuadors_forests_from_mining

From 2006, under the Correa-Glas administration, Ecuador contracted record levels of external debt for highway and hydroelectric dam infrastructure to subsidize mining.

Foreign investments were guaranteed by a corporate friendly international arbitration system, facilitated by the World Bank which had earlier set the stage for the current calamity by funding mineralogical surveys of national parks and other protected areas and advising the administration on dismantling of laws and regulations protecting the environment.

After 2008, when Ecuador defaulted on $3.2 billion worth of its national debt, it borrowed $15 billion from China, to be paid back in the form of oil and mineral exports.

These deals have been fraught with corruption. Underselling, bribery and the laundering of money via offshore accounts are routine practice in the Ecuadorean business class, and the Chinese companies who now hold concessions over vast tracts of Ecuadorean land are no cleaner.

Before leaving office Correa-Glas removed much of the regulation that had been holding the mining industry in check.

And the corruption goes much deeper than mere bribes.

The lure of mining is a deadly mirage.

The impacts of large-scale open pit mining within rainforest watersheds include mass deforestation, erosion, the contamination of water sources by toxins such as lead and arsenic, and desertification.

A lush rainforest transforms into an arid wasteland incapable of sustaining either ecosystems or human beings.

Without a huge outcry both within Ecuador and around the world, the biological gems and pristine rivers and streams will be destroyed.

But it doesn’t have to be this way.

Civil society needs an open conversation with the state.

Ecuador has enormous potential to develop its economy based on renewable energy and its rich biodiversity can support a large ecotourism industry. In 2010 Costa Rica banned open-pit mining, and today has socioeconomic indicators better than Ecuador’s.

Costa Rica also provides a ‘Payment for Ecosystem Services’ to landholders, and through this scheme has actually increased its rainforest area (from 20% to just over 50%).

Ecuador’s society and government must explore how an economy based on the sustainable use of pristine water sources, the country’s incomparable forests, and other natural resources is superior to an economy based on short term extraction leaving behind a despoiled and impoverished landscape.

For example, studies by Earth Economics in the Intag region of Ecuador (where some of the new mining concessions are located) show that ecosystem services and sustainable development would offer a better economic solution let alone ecological and social.

The Rainforest Information Centre is launching a CROWDFUND to support Ecuadorean NGO’s to mobilise and to mount a publicity and education campaign and to help advance a dialogue throughout Ecuador and beyond: ‘Extractivism, economic diversification and prospects for sustainable development in Ecuador’.

We have set the crowdfund target at A$15,000 and Paul Gilding, ex-CEO of Greenpeace International is getting the ball rolling with an offer to match all donations $ for $ so that every $ that you donate will be matched by Paul.

Donations are tax-deductible in Australia and the US.

When you sign the PETITION you will reach not just to the President of Ecuador and his cabinet.

The petition is also addressed to the other actors who have set the stage for this calamity, being:

The World Bank who funded a project which collected geochemical data from 3.6 million hectares of Western Ecuador including seven national protected areas and dozens of forest reserves thus doing the groundwork for the mining industry.

The international governments and NGO’s who funded the creation and upkeep of these Bosques Protectores and indigenous reserves and other protected sites and who now need to persuade Ecuador to prevent their good work from being undone.

The governments of the countries whose mining companies are preparing this devastation.

Australian senator Lee Rhiannon (who was part of helping us create Los Cedros 30 years ago) wrote to the Canadian Environment Minister on our behalf and the Canadian Embassy has expressed concern about the bad name Cornerstone is giving the other Canadian mining projects.

They have asked us for a meeting to discuss the reports of bad business practices by the company.

Likewise, the Chinese government is beginning to develop some guidance which will come into effect in March 2018.

We are lobbying the Australian government to put pressure on BHP, Solgold and other Australian companies preparing to mine protected forests and indigenous reserves in Ecuador.

Visit Ecuador Endangered for more links to the history and causes of Ecuador’s mining crisis: https://ecuadorendangered.com/

There you will find research, detailed reports and news updates.

Contact information can be found for those wanting to be involved in the campaign, which is being run entirely by volunteers.

To let the Ecuadorean Government, World Bank and mining companies know you want them to invest in a sustainable future for all, a petition can be found here: http://www.rainforestinformationcentre.org/save_ecuadors_forests_from_mining

via Globalists weaponize the stock market to control presidents

Globalists Weaponize The Stock Market To Control Presidents-Anatomy Of A Fake Reality By Jon Rappoport 03/04/18: https://jonrappoport.wordpress.com/2018/03/04/globalists-weaponize-the-stock-market-to-control-presidents/ OR:  https://wordpress.com/post/randrewohge.wordpress.com/3566

The economy is on the rise.

No, it’s sinking.

There are very good indicators.

No, all the signals are catastrophic.

We’ve seen pundits on television hawking their version of the near future.

Many of them represent organizations who have political and financial agendas.

For example, Globalist forces and their mouthpieces would have you believe that laying tariffs on imports will sink the stock market.

However, since the stock market is a rigged game for insiders, here is a proper translation of the above paragraph:

“If tariffs are laid on, Globalist insiders will MAKE the stock market sink, and characterize that as a natural consequence of the new tariffs.”

In turn, then, a diving stock market will be PROMOTED (by the Globalist press) as a sign that the overall economy is in big trouble.

Trump surrounded himself with Goldman Sachs people because they could give him a rising stock market.

This is not an ironclad agreement.

If Goldman decides Trump’s policies are wandering off-track, they can bail on him and send the stock market down.

This is how the economic game is played.

The return of some corporations from overseas, to set up factories in the US again?

Fine. No problem.

But Trump’s statement, several days ago, that he would lay a 25% tariff on imported steel and a 10% tariff on aluminum—that’s an anti-Globalist earthquake.

Globalist leaders in foreign countries are lining up to say they’ll retaliate.

They’ll lay tariffs on imports from America.

Bourbon, jeans, motorcycles, orange juice, rice.

But is this the end of the world?

No.

It should be the first step in sorting out unfair and ruinous trade policies that have eaten into the US economy for decades.

The stock market is hyped as the prime indicator that passes judgment on what Trump (or any president) is doing.

If it falls precipitously, that means he’s wrong and very badly wrong.

But in truth, the stock market is a separate giant Vegas casino.

Investment funds’ algorithms move billions in and out of trades, minute by minute.

Individual speculators bet on rises and falls.

Claiming the condition of the entire US economy is reflected in the stock market is like saying the Powerball lottery reveals the financial health or sickness of the US automobile industry.

The stock market and the precious Dow are set up as a very profitable playground for insiders.

That’s the beginning and the end of that story.

Imagine we have a company, X, which is listed on the New York Stock Exchange.

Its price is very low, and has been low for quite some time.

It crawls along, doing nothing.

Quietly, insiders are buying up the stock.

When they’re ready, they take the price up.

Then the rubes, seeing the rise, buy the stock, too.

THEN there is a shakeout: the insiders momentarily take the stock price down.

The rubes, frightened, sell—and the insiders scoop up those shares.

Now they’re really ready.

They take the stock for a long ride.

Up.

They make a bundle.

When they’ve had enough, they put out news that company X’s stock is a terrific buy.

The rubes buy in—but this the top.

The insiders unload their shares on the rubes and take stock price down.

The insiders also sell short (bet against a rise) and profit on the way down. It’s a piece a cake, a very handsome piece of cake.

This is the game. It really has nothing at all to do with the condition of the economy.

But—there is another game.

The insiders, through their minions in the press, continue to promote the illusion that the overall condition of the stock market reveals “how the economy is doing.”

Therefore, by being able to control the stock market, the insiders can control THE PERCEPTION of how the economy is doing.

If they decide it’s time to give the impression the economy is in deep trouble—and therefore the economic policies of a president sitting in the White House are disastrous for the country—they take the stock market down.

Every president faces this situation.

He’s at the mercy of forces beyond his control—unless he tries to expose the game and show the American people what’s really going on.

But most presidents are unaware of the overall op.

If they do know the score, they’re reluctant to blow the whistle on it, in part because they believe the public is too ignorant to grasp the mechanics of how the op works.

And the howling press, firmly in the pocket of the insiders, would call the president a conspiracy nutcase in a hundred different ways, day and night, 24/7.

The stock market is a casino.

The economy is the economy.

They are two separate realities.

But shills and operatives and propagandists and sold-out economists and idiot financial reporters forever connect the two realities and make it seem as if they are entangled in an intimate cause-and-effect relationship.

They aren’t.

Many people believe the sale of stock benefits a company.

This is true when a privately held company goes public by issuing stock in what’s called an initial public offering (IPO).

During the limited time period of the IPO, money from the sale of stock does go back to the company issuing it, and that money can used for company growth.

Yes.

Later, the company can issue more stock in what’s called a follow-on offering, and then, too, money from the sale of the stock goes back to the company.

But…by far the greatest amount of activity in the stock market is the simple buying and selling of shares…and none of the ensuing profits and losses accrue to the companies whose shares are being traded.

It’s a pure casino operation.

This casino operation does nothing to benefit the companies in the way of adding cash to their assets.

Consider what can happen to a large retirement pension fund.

The fund takes in money from employees.

It will later pay back that money, plus “add-ons.”

How?

The pension fund invests a great deal of the money it is holding in the stock market.

It buys a variety of stocks and sells them and buys them and sells them.

So if those stocks plummet and stay down, and the pension fund isn’t willing to ride out the storm in hopes that the fall will eventually turn into a rise, the pension fund will sell off those stocks and end up losing much money.

It gambled in the casino with other people’s money, and it lost.

But even here, the reason for the loss was an incorrect perception/prediction about what was going to happen in the casino.

It wasn’t about actualities of the economy.

Getting the picture?

Fake reality.

Top to bottom.