Showing posts with label president obama. Show all posts
Showing posts with label president obama. Show all posts

Sunday, December 24, 2017

"The US Has Crossed The Line": Russia Warns Trump Decision To Arm Ukraine Will "Lead To Bloodshed"

Russia has reacted fiercely to the end of week breaking news that President Trump plans to approve the legal sale of US antitank missiles and possibly other advanced systems to the Ukrainian government in a move that could change the battlefield calculus of the war between Ukrainian and Russian-aligned forces in the Donbass region along the Russian border. ABC News described the "total defense package of $47 million includes the sale of 210 anti-tank missiles and 35 launchers" which will be sure to harm Trump"s longtime stated goal of improving relations with Moscow.


Though Kiev has long had limited access to US lethal arms through private contracts with American and international arms producers, this represents a significant escalation involving the likelihood that advanced US systems would be used directly on Russian-aligned militias in the eastern Donbass region and potentially Russian forces along the border. Up until now, the White House has been reluctant to escalate the war so openly, as it did when it supplied anti-Assad fighters in Syria with sophisticated TOW anti-tank missiles.


While the US State Department claims the move is "defensive" in nature, Russian deputy foreign minister Sergei Ryabkov charged the US with deliberately "crossing the line" and pushing the Ukrainian authorities "towards new bloodshed," adding that "American weapons can lead to new victims".



Ukrainian army soldiers perform a weapons exercise at a training ground outside Lviv, western Ukraine, Thursday, Feb. 5, 2015. Image source: AP via Common Dreams


"Kiev revanchists are shooting at Donbass every day, they don"t want to conduct peace negotiations and dream of doing away with the disobedient population. And the United States has decided to give them weapons to do that," Ryabkov said. He further slammed the US as an "accomplice in igniting a war" whose political leadership is “blinded by Russophobia and eagerly applaud the Ukrainian nationalist punitive battalions.”


Indeed a number of outspoken Russia hawks in Congress were enthusiastic over the possibility of heavier and direct arms flow to Ukraine, including John McCain, Bob Corker, and Tom Cotton - all supporters of the original Ukraine Freedom Support Act signed into law by President Obama in December 2014, though never fully enacted.



Cotton for example - recently rumored to be Trump"s pick for CIA Director - said of the new initiative for arms exports to Ukraine: "This is a break from failed Obama era policies to make Russia pay a cost for its aggression. With this decision, the Trump administration is reminding Vladimir Putin and his cronies that they lost the Cold War, and we won’t tolerate their bullying of our friend Ukraine."


But Russian leaders have warned that through the decision the US may be dragged deeper into a quagmire which could result in direct confrontation with pro-Russian rebels in Ukraine"s east. Aleksey Pushkov, member of the Russian Senate security committee, told RT News that delivery of the more advanced systems like the Army"s M-148 Javelin Portable Anti-Tank Missile would require US military advisers on the ground, which could be targeted by separatist forces. 


Pushkov told RT, the US “has enough problems already to allow itself to be involved in adventures of the [Ukrainian] regime. And we know too well how adventurous Kiev may be.” This comes as authorities in Kiev are already requesting that Washington adds anti-aircraft missiles to its shopping list as well, according to multiple reports


Meanwhile German Chancellor Angela Merkel and French President Emmanuel Macron issued a statement calling for "disengagement and the withdrawal of heavy weapons" in the Ukrainian conflict, a scenario now much further away from taking shape than ever. But after years of covert American involvement in the Ukrainian proxy and civil war which has raged since 2014 - and which a leaked recording confirmed was precipitated by the US State Department it appears that hawks like McCain, Cotton, and Corker are finally getting their way.









Wednesday, December 13, 2017

The Non-Crime Of "Lying To The FBI"

Authored by Ilana Mercer via The Mises Institute,



In a fit of pique in 2016, then-President Barack Obama expelled Russian diplomats from the United States. K. T. McFarland, Michael Flynn"s deputy in the Trump transition team, worried that Obama"s expulsion of the diplomats was aimed at "boxing Trump in diplomatically," making it impossible for the president to "improve relations with Russia," a promise he ran on. (For her perspicacity, McFarland has since been forced to lawyer-up in fear for her freedom.)


To defuse President Obama"s spiteful maneuver, Flynn spoke to Ambassador Kislyak, the upshot of which was that Russia "retaliated" by inviting US diplomats and their families to the Kremlin for a New Year"s bash.


Was a crime committed by Flynn in this exchange and subsequent meeting? Not according to the FBI. Laying the cornerstone for the president-elect"s promised foreign policy - diplomacy with Russia - is not illegal.


Perversely, however, lying to the US Federal Government’s version of the KGB (the FBI) - which apparently does its own share of lying - is illegal.


An easy way for the government to create criminality where there is none is to make it a crime to lie to its agents, in this case the FBI, which is Deep State Central. The object of creating bogus categories of crime, naturally, is to leverage power over adversaries; to scare them.


Likewise was Martha Stewart imprisoned — not for the offense of insider trading, but for lying to her inquisitors. During interrogation, the poor woman had been so intimidated, so scared of conviction— wouldn"t you? — that she fibbed. The lead federal prosecutor in her case was the now-notorious James B. Comey. (See "Convicted For Fearing Conviction")


This kind of entrapment — the criminalization of the act of lying to the government, in Flynn"s case about a non-crime — is facilitated under the unconstitutional Section 1001 of Title 18, in the United States Code.


It makes it an offense to make "a materially false" statement to a federal official — even when one is not under oath.


It"s perfectly fine, however, for said official to bait and bully a private citizen into fibbing. By such tactics, The State has created a category of crime from which a select few are exempt.


Is this equality under the law or inequality under the law?


Section 1001 neatly accommodates a plethora of due-process violations.


Yet another tool in the Deep State toolbox is to lean on family members in order to extract a confession. To get Flynn senior to confess, U.S. Special Counsel Robert Mueller is purported to have threatened Mike Flynn junior with a legal kneecapping.


Ultimately, The State has overwhelming power when compared to the limited resources and power of an accused. The power differential between The State and an accused means he or she, as the compromised party, will cop a plea.


The Flynn guilty plea bargain, if you will, is nothing more than a negotiated deal which subverts the very goal of justice: the search for truth.


In the process of hammering out an agreement that pacified a bloodthirsty prosecutor, Flynn"s punishment for doing nothing wrong has been reduced.  President Trump"s former national security adviser will still have to sell his home to defray the costs of a federal onslaught.



 









Tuesday, December 12, 2017

Bama Blowout?: Latest Fox News Poll Shows Doug Jones With Commanding 10-Point Lead Over Moore

With voting set to get underway in the controversial Alabama Senate race in about 24 hours, the latest Fox News Poll of likely voters shows a commanding 10-point lead for Democrat Doug Jones.  The poll was conducted among likely Alabama voters on Thursday through Sunday using traditional polling techniques, including a list-based probability sample with both landlines and cellphones.



Of course, as with all the "fake polls" that inaccurately predicted Hillary"s sweeping victory last fall, one key variable in determining the accuracy of polling data is predicting who will show up to vote tomorrow...a task which even Fox admits is "impossible to know." 








This race’s uniqueness is significant.  It is impossible to know who will show up to vote in a special election to fill a seat in the middle of a term in an off-year.  And it’s December, a time when people expect to be going to the shopping mall, not the voting booth.



That said, there are numerous red flags which don"t bode well of Moore"s chances including strong support among Independents for Jones as well as waning support from evangelical Christians.








The small subgroup of independents breaks for Jones by 29 points.


 


Support for Moore among white evangelical Christians is down 8 points since last month: it was 73 percent in November and stands at 65 percent now.


 


And his advantage among men has dropped from 12 points last month to just 3 points now.  In addition, Republican men (41 percent) are less likely than GOP women (50 percent) or Democratic men (53 percent) to be “extremely” interested in the race.


 


“Moore might prevail if only the people who typically vote in Alabama elections turn out Tuesday, which is often what happens in special elections,” says Democratic pollster Chris Anderson, who conducts the Fox News Poll with Republican counterpart Daron Shaw.


 


“But this appears to be a special, special election with blacks and young voters animated by a caustic Republican candidate and the chance of winning a statewide election with national implications, and at the same time some Republicans and many moderates are turned off by Moore, too.”




All that said, this latest Fox News poll deviates substantially from the Real Clear Politics average which includes a series of polls that show a commanding lead for Moore...the exact opposite of what Fox News found.


RCP


Meanwhile, offering up the latest evidence of how critical the establishment parties consider this race to be, CNN pointed out this morning that former President Obama recorded a robocall for Jones over the weekend saying "This one’s serious. You can’t sit it out."








"This one"s serious," Obama says in the call. "You can"t sit it out."


 


Two Democratic officials familiar with the Alabama race tell CNN that Obama recorded the phone message in recent days, at the very time Trump stepped up his own involvement in the campaign with a recorded message. Obama does not mention Moore by name.


 


"Doug Jones is a fighter for equality, for progress," Obama says. "Doug will be our champion for justice. So get out and vote, Alabama."


 


Obama"s message to voters -- intended to specifically reach black voters whose turnout is critical for Democratic candidate Jones -- comes on the eve of a special election that has drawn extraordinary national attention and divided the Republican Party over whether sexual allegations against Moore make him unfit for office.



Of course, only time will tell if this is just another fake poll or if Republicans made a serious blunder in their decision to support a high controversial candidate who was doomed from the moment sexual assault allegations against him first surfaced last month.









Monday, December 4, 2017

Did Mike Flynn Wear A Wire During Conversations With Jared Kushner?

By now, other potential Trump administration officials who might’ve interacted with Michael Flynn following his Jan. 24 interview with FBI agents - where the former general lied about the details of his conversation with then-ambassador Kislyak - are probably tearing their hair out trying to discern whether the former National Security Adviser – who served in that post for less than a month before being fired for allegedly misrepresenting these same conversations to Vice President Pence – might’ve worn a wire during their interactions.


Of course, there’s nothing in Flynn’s Nov. 30 plea agreement that definitively answers the question of whether Flynn wore a wire.



So, in the interest of reading the tea leaves, the Guardian spoke to a handful of experts about whether there was any language in the plea agreement to suggest that Flynn – who tried to cover up the fact that he intimated to then-ambassador Kislyak that Trump would roll back some of the sanctions against the Putin government while also soliciting a Russian veto of a UN resolution condemning Israeli settlements – might’ve been wired for sound.


Their conclusion? That certain language in the Flynn plea about ‘covert actions’ suggests that, yes, he did wear a wire.


Section eight of the deal reached by Donald Trump’s former national security adviser in the inquiry into Russian meddling in the US election is entitled “cooperation”. It specifies that as well as answering questions and submitting to government-administered polygraph tests, Flynn’s cooperation “may include … participating in covert law enforcement activities”.


 


Long-time students of federal law enforcement practices agreed, speaking anonymously, that “covert law enforcement activities” likely refers to the possibility of wearing a concealed wire or recording telephone conversations with other potential suspects. It is not known whether Flynn has worn a wire at any time.


 


“If the other subjects of investigation have had any conversations with Flynn during the last few months, that phrase must have all of them shaking in their boots,” said John Flannery, a former federal prosecutor in the southern district of New York.



And if there’s one member of the Trump inner circle who might have something to worry about thanks to Flynn, it’s senior Trump adviser and son-in-law Jared Kushner.  


“The one who must be particularly terrified is [Trump son-in-law and adviser] Jared Kushner, if he spoke to the special counsel’s office without immunity about the very matter that is the subject of Flynn’s plea. I think he must be paralyzed if he talked to Flynn before or after the investigators debriefed him."



But aside from the language about covert action, few other details about what actions might’ve taken can be gleaned from the plea. Even the date when Flynn began cooperating with Mueller’s investigation remains a mystery - though at least one prominent Republican donor was telling friends in July this year that Flynn was already helping the Mueller probe, the Guardian reported.


The exact nature of the information that Flynn provided to Mueller also is not yet known (though we imagine, given the sieve-like nature of the Mueller camp when it comes to media leaks, some of these details will likely begin appearing in the pages of the New York Times and Washington Post). However, if there’s one clue as to the magnitude of the assistance that Flynn provided to Mueller, it’s the updated sentencing guidelines for the single charge of obstruction that Flynn has chosen to eat instead of trying his luck with a trial.


Considering the severity of Flynn’s crimes in the eyes of the FBI (which doesn’t look kindly on people who knowingly hinder investigations), the dramatic reduction in the former general’s sentencing suggests that he is going to help Mueller take down at least one other senior member of the Trump inner circle.


The main clue in the plea agreement about the importance of the information Flynn has already provided lies in the discrepancy between the maximum penalty for the crime he has admitted and the maximum sentence the special counsel has promised to recommend.


 


According to the document made public on Friday, Flynn could have been sentenced to as much as five years in prison and a $250,000 fine. As long as he cooperates in full with all of the special counsel’s requests, the document says the “estimated sentencing guidelines” range from zero to six months, with a possible fine of between $500 and $9,500. The proposed sentencing reduction also partly takes into account the fact Flynn has no criminal record.


 


“No prosecutor I know would agree to reducing a sentence that dramatically unless the witness had provided very significant information about at least one other target of his investigation,” Flannery said. “You wouldn’t get such a low sentence unless you had implicated a big target. The person that you’re lifting up allows you to sit on the ground.”



The exact language in the plea agreement requires Flynn to cooperate “fully, truthfully, completely and with this Office and other Federal, state and local law enforcement authorities identified by this Office in any and all matters as to which this Office deems the cooperation relevant”.


If Flynn refuses to cooperate fully, “the agreement will be considered breached by your client.” The agreement says any breach will have a serious impact on Flynn’s sentence.


Experts told the Guardian it was notable Flynn pleaded guilty before being indicted by a grand jury, though the logic here is easy to spot. By sparing Flynn this very public embarrassment, Flynn has more reason to feel genuinely grateful toward the former FBI director. It also makes sense from a strategic perspective: By preserving Flynn’s cover, the former National Security Adviser was free to begin recording incriminating information that could be useful for Mueller.


Whatever the nature of the agreement, Flynn has every incentive to provide Mueller with as much useful information as he possibly can. According to the agreement Flynn must cooperate “fully, truthfully, completely and with this Office and other Federal, state and local law enforcement authorities identified by this Office in any and all matters as to which this Office deems the cooperation relevant”.


If Flynn refuses or fails, “the agreement will be considered breached by your client.” The agreement says any breach will have a serious impact on Flynn’s sentence.


To be sure, the idea that Flynn – or even Papadopoulos before him – wore a wire is still, at this point, mere speculation. While it sounds like prosecutors wanted both men to do so, in Flynn’s case, Mueller may have included the suspicious passage in his plea for another unrelated purpose: To scare other potential witnesses or targets into being completely truthful with investigators.


Since there was no legal requirement for Mueller to include this information about covert law enforcement activities in the plea agreement, Flannery believes it was put there “to put the fear of God” into anyone who may have given the special counsel answers that conflict with Flynn’s information.



Of course, the nature of Flynn’s cooperation was immediately overblown by ABC in an error that might cost one senior correspondent his career – indeed, it has already greatly damaged what little credibility he had left. ABC suspended Brian Ross – who erroneously reported that Flynn would testify Trump instructed him to contact the Russians during the campaign. Flynn was actually preparing to testify that a senior Trump official 0 revealed to be Kushner – ordered him to do so during the transition. Outreach between the transition and foreign regimes is legal and common.


So, aside from undermining President Obama during the waning days of his administration, Flynn’s conversation with Kislyak was otherwise completely legitimate, which begs the question: Why’d Flynn lie? His actions, of course, were technically violations of a rarely enforced law against soliciting these types of quid-pro-quo arrangements. But the risk of being caught in a lie was far greater than risking possible punishment for his conversations with Kislyak.


So why’d he do it?


* * *


Full Flynn Plea Agreement:










Saturday, November 25, 2017

The US-Saudi Starvation Blockade

Authored by Patrick Buchanan via Buchanan.org,


Our aim is to “starve the whole population - men, women, and children, old and young, wounded and sound - into submission,” said First Lord of the Admiralty Winston Churchill.


He was speaking of Germany at the outset of the Great War of 1914-1918. Americans denounced as inhumane this starvation blockade that would eventually take the lives of a million German civilians.


Yet when we went to war in 1917, a U.S. admiral told British Prime Minister Lloyd George, “You will find that it will take us only two months to become as great criminals as you are.”


After the Armistice of Nov. 11, 1918, however, the starvation blockade was not lifted until Germany capitulated to all Allied demands in the Treaty of Versailles.


As late as March 1919, four months after the Germans laid down their arms, Churchill arose in Parliament to exult, “We are enforcing the blockade with rigor, and Germany is very near starvation.”


So grave were conditions in Germany that Gen. Sir Herbert Plumer protested to Lloyd George in Paris that morale among his troops on the Rhine was sinking from seeing “hordes of skinny and bloated children pawing over the offal from British cantonments.”



The starvation blockade was a war crime and a crime against humanity. But the horrors of the Second World War made people forget this milestone on the Western road to barbarism.



A comparable crime is being committed today against the poorest people in the Arab world - and with the complicity of the United States.


Saudi Arabia, which attacked and invaded Yemen in 2015 after Houthi rebels dumped over a pro-Saudi regime in Sanaa and overran much of the country, has imposed a land, sea and air blockade, after the Houthis fired a missile at Riyadh this month that was shot down.


The Saudis say it was an Iranian missile, fired with the aid of Hezbollah, and an “act of war” against the kingdom. The Houthis admit to firing the missile, but all three deny Iran and Hezbollah had any role.


Whatever the facts of the attack, what the Saudis, with U.S. support, are doing today with this total blockade of that impoverished country appears to be both inhumane and indefensible.


Almost 90 percent of Yemen’s food, fuel and medicine is imported, and these imports are being cut off. The largest cities under Houthi control, the port of Hodaida and Sanaa, the capital, have lost access to drinking water because the fuel needed to purify the water is not there.


Thousands have died of cholera. Hundreds of thousands are at risk. Children are in danger from a diphtheria epidemic. Critical drugs and medicines have stopped coming in, a death sentence for diabetics and cancer patients.


If airfields and ports under Houthi control are not allowed to open and the necessities of life and humanitarian aid are not allowed to flow in, the Yemenis face famine and starvation.


What did these people do to deserve this? What did they do to us that we would assist the Saudis in doing this to them?


The Houthis are not al-Qaida or ISIS. Those are Sunni terrorist groups, and the Houthis detest them.


Is this now the American way of war? Are we Americans, this Thanksgiving and Christmas, prepared to collude in a human rights catastrophe that will engender a hatred of us among generations of Yemeni and stain the name of our country?


Saudis argue that the specter of starvation will turn the Yemeni people against the rebels and force the Houthi to submit. But what if the policy fails. What if the Houthis, who have held the northern half of the country for more than two years, do not yield? What then?


Are we willing to play passive observer as thousands and then tens of thousands of innocent civilians — the old, sick, weak, and infants and toddlers first — die from a starvation blockade supported by the mighty United States of America?


Without U.S. targeting and refueling, Saudi planes could not attack the Houthis effectively and Riyadh could not win this war. But when did Congress authorize this war on a nation that never attacked us?


President Obama first approved U.S. support for the Saudi war effort. President Trump has continued the Obama policy, and the war in Yemen has now become his war, and his human rights catastrophe.


Yemen today is arguably the worst humanitarian crisis on earth, and America’s role in it is undeniable and indispensable.


If the United States were to tell Crown Prince Mohammed bin Salman that we were no longer going to support his war in Yemen, the Saudis would have to accept the reality that they have lost this war.


Indeed, given Riyadh’s failure in the Syria civil war, its failure to discipline rebellious Qatar, its stalemated war and human rights disaster in Yemen, Trump might take a hard second look at the Sunni monarchy that is the pillar of U.S. policy in the Persian Gulf.









Friday, November 24, 2017

2nd Largest Gunmaker Nears Default As Americans Buy Fewer Firearms Post-Obama

2017 has seen the biggest drop in American firearms sales in history.


After 8 years of almost incessant rises in NICS Firearms Checks (a proxy for "legal" arms sales) under President Obama...



source: NICS


2017 has seen a considerable drop (year-to-date) - the biggest on NICS records...



source: NICS


This sudden drop in demand after President Trump"s election has meant Remington Outdoor, the second-largest U.S. gunmaker, has suffered a “rapid” and “sharp” deterioration in sales and a similar drop in profits since January, and faces “continued softness in consumer demand for firearms,” according to credit analysts at Standard & Poor’s Global Ratings.


As Philly.com"s Joseph DiStefano reports, S&P cut the company’s corporate credit rating - already at a junk-bond-level CCC+ - two full notches, to CCC- as:


...a backlog of unsold, unwanted firearms will force Remington to operate at a loss and “pressure the company’s sales and profitability at least through early 2018, resulting in insufficient cash flow for debt service and fixed charges,” unless Remington gives up cash to pay for ongoing operations.


 


S&P expects “a heightened risk of a restructuring” of Remington’s $575 million senior secured loan and asset-based lending facility, which it is supposed to pay back in 2019.


 


If Remington defaults on its payments, based on the company’s current value, S&P expects first-lien creditors may receive around 35 cents back from every dollar they have lent or invested. Lower-rated creditors would get back less, or nothing.



While the report said that default is not yet "a virtual certainty," judging by the collapse in Remington"s bond prices this week... the market is pretty sure.



And while Remington is not public, it is not alone in pain as shown below...










Saturday, November 18, 2017

Ben Garrison On Mending A Fractured America

Authored by Ben Garrison via GrrrGraphics.com,


Earlier this week I was on the Jesse Lee Peterson show out of LA.


It was a short segment early in the morning and we briefly discussed the NFL kneelers. I spoke about how they offended the fans, the veterans, and US history in general. I pointed out that black Americans have just as much stake and heritage in this country as anyone else. The first person to die in the Revolutionary War was Crispus Attucks, a black man. There were black Minute Men. I mentioned Andrew Jackson and the black battalion that was vital in defeating the the British in the Battle of New Orleans.


Peterson had one call for me - a woman who angrily denounced Andrew Jackson and how those slaves were forced to fight. I was taken aback by this, because those men were heroes and veterans to be honored regardless of slavery. Shamefully, some of those men did not get their freedom, but it does not take away from the fact that they put their lives on the line for their country. I might have added that nearly 600,000 ‘privileged’ white men died in the Civil War to end slavery.


The kneelers seem to have forgotten that.


Increasingly our country is divided.


 


Civility is being replaced by name calling–and even violence.


 


People want others with whom they disagree to lose their jobs.


 


Accusations of sexual impropriety are widespread.


 


Censorship is being implemented by the tech left.


 


Rational debate is replaced by name calling and fear.


 


Racial hatred is very real and always has been, but it seems worse nowadays—and our first ‘black’ president, Obama, actually set back race relations.


 


Too many people now hate our country, our history and our culture.



What is that culture? For most of our history it has been predominately European and Christian. For years we’ve had a huge influx of immigrants ‘of color’ who have a lot of children. White people will soon be a minority in the USA. There are some on the alt right calling for the protection of whites by means identity politics and segregation. Many black nationalists also want the return of segregation, after they fought so hard against it. Muslims naturally segregate themselves and demand special food, special treatment, and Sharia Law, which is completely at odds with our Constitution. The rich are getting stupendously richer and segregate themselves in gated communities. Three men in America now control more wealth than the bottom half of the US population.


Immigrants, illegal and otherwise, are now encouraged to keep their own cultures and languages. Some consider the traditional melting pot to be offensive - they say it’s ‘racist’ and ‘nativist.’



The end game of that kind of thinking will be the proliferation of ‘no go’ Balkanized zones in the United States. Trump’s brand of nationalism may be the glue needed to keep our country together. At least for a while longer.









Friday, November 10, 2017

Putin, Trump Meet In Vietnam: This Handshake Followed

While officials cited "scheduling conflicts" that dashed hopes of a bilateral meeting between President Trump and President Putin on the sidelines of the APEC summit, the two "old friends" came face-to-face during the photo-op at the start of the conference... and the handshake took place...


The two were all smiles while shaking hands during the photo call...



Preparing for the traditional leaders’ photo at the Asia Pacific Economic Cooperation (APEC) summit – held this year in Da Nang, Vietnam – Putin had already taken his spot when Trump approached him, extending his hand. In the manner which has become famous, the US president then held onto Putin’s hand for several seconds, patting his counterpart on the back.



The leaders were dressed in Vietnamese national attire, in accordance with the informal APEC tradition. Both Putin and Trump put on blue shirts, while some of the other participants chose to wear white ones.


Notably the positioning of the leaders this year...right next to the Vietnamese leader and Putin...



Quite different from that of three years ago when President Obama appeared to be demoted to the old wives club...










Sunday, October 8, 2017

Russiagate Is More Fiction Than Fact

Authored by Aaron Mate via TheNation.com,


From accusations of Trump campaign collusion to Russian Facebook ad buys, the media has substituted hype for evidence...



In her new campaign memoir, What Happened, Hillary Clinton reveals that she has followed “every twist and turn of the story,” and “read everything I could get my hands on,” concerning Russia’s role in the 2016 presidential election. “I do wonder sometimes about what would have happened if President Obama had made a televised address to the nation in the fall of 2016 warning that our democracy was under attack,” she writes.


Clinton has had a lot to take in. Since Election Day, the controversy over alleged Russian meddling and Trump campaign collusion has consumed Washington and the national media. Yet nearly one year later there is still no concrete evidence of its central allegations. There are claims by US intelligence officials that the Russian government hacked e-mails and used social media to help elect Donald Trump, but there has yet to be any corroboration. Although the oft-cited January intelligence report “uses the strongest language and offers the most detailed assessment yet,” The Atlantic observed that “it does not or cannot provide evidence for its assertions.” Noting the “absence of any proof” and “hard evidence to back up the agencies’ claims that the Russian government engineered the election attack,” The New York Times concluded that the intelligence community’s message “essentially amounts to ‘trust us.’” That remains the case today.


The same holds for the question of collusion. Officials acknowledged to Reuters in May that “they had seen no evidence of wrongdoing or collusion between the campaign and Russia in the communications reviewed so far.” Well-placed critics of Trump - including former DNI chief James Clapper, former CIA director Michael Morrell, Representative Maxine Waters, and Senator Dianne Feinstein - concur to date.


Recognizing this absence of evidence helps examine what has been substituted in its place.


Shattered, the insider account of the Clinton campaign, reports that “in the days after the election, Hillary declined to take responsibility for her own loss.” Instead, one source recounted, aides were ordered “to make sure all these narratives get spun the right way.” Within 24 hours of Clinton’s concession speech, top officials gathered “to engineer the case that the election wasn’t entirely on the up-and-up.… Already, Russian hacking was the centerpiece of the argument.”


But the focus on Russia has utility far beyond the Clinton camp. It dovetails with elements of state power that oppose Trump’s call for improved relations with Moscow and who are willing to deploy a familiar playbook of Cold War fearmongering to block any developments on that front.


The multiple investigations and anonymous leaks are also a tool to pacify an erratic president whose anti-interventionist rhetoric—by all indications, a ruse—alarmed foreign-policy elites during the campaign. Corporate media outlets driven by clicks and ratings are inexorably drawn to the scandal. The public is presented with a real-life spy thriller, which for some carries the added appeal of possibly undoing a reviled president and his improbable victory.



These imperatives have incentivized a compromised set of journalistic and evidentiary standards. In Russiagate, unverified claims are reported with little to no skepticism. Comporting developments are cherry-picked and overhyped, while countervailing ones are minimized or ignored. Front-page headlines advertise explosive and incriminating developments, only to often be undermined by the article’s content, or retracted entirely. Qualified language—likely, suspected, apparent—appears next to “Russians” to account for the absence of concrete links. As a result, Russiagate has enlarged into a storm of innuendo that engulfs issues far beyond its original scope.


The latest two stories about alleged Trump campaign collusion were initially received as smoking guns. But upon further examination, they may actually undermine that narrative.


One was news that Trump had signed a non-binding letter of intent to license his name for a proposed building in Moscow as he ran for the White House. Russian-born developer Felix Sater predicted to Trump lawyer Michael Cohen that the deal would help Trump win the presidency. “I will get Putin on this program and we will get Donald elected,” Sater wrote, believing that voters would be impressed that Trump could make a real-estate deal with the United States’ “most difficult adversary.” The New York Times describes the outcome:





There is no evidence in the emails that Mr. Sater delivered on his promises, and one email suggests that Mr. Sater overstated his Russian ties. In January 2016, Mr. Cohen wrote to Mr. Putin’s spokesman, Dmitri S. Peskov, asking for help restarting the Trump Tower project, which had stalled. But Mr. Cohen did not appear to have Mr. Peskov’s direct email, and instead wrote to a general inbox for press inquiries.



The project never got government permits or financing, and died weeks later.



Peskov has confirmed he ended up seeing the e-mail from Cohen, but did not bother to respond. The story does raise a potential conflict of interest: Trump pursued a Moscow deal as he praised Putin on the campaign trial. But it is hard to see how a deal that never got off the ground is of more importance than actual deals Trump made in places like Turkey, the Philippines, and the Persian Gulf. If anything, the story should introduce skepticism into whether any collusion took place: The deal failed, and Trump’s lawyer did not even have an e-mail address for his Russian counterparts.


The revelation of Sater’s e-mails to Cohen followed the earlier controversy of Rob Goldstone offering Donald Trump Jr. incriminating information on Hillary Clinton as “part of Russia and its government’s support for Mr. Trump.” Goldstone’s e-mail was more fruitful than Sater’s in that it yielded a meeting, albeit one that Trump Jr. claims he abandoned after 20 minutes. Those who deem the Sater-Goldstone e-mail chains incriminating or even treasonous should be reminded of their provenance: Sater is known as “a canny operator and a colorful bullshitter” who has “launched a host of crudely named websites—including IAmAFaggot.com and VaginaBoy.com… to attack a former business partner.” Meanwhile, Goldstone is a British tabloid journalist turned music publicist. One does not have to be an intelligence expert to doubt that they are Kremlin cut-outs.


Then there is Facebook’s disclosure that fake accounts “likely operated out of Russia” paid $100,000 for 3,000 ads starting in June 2015. The New York Times editorial board described it as “further evidence of what amounted to unprecedented foreign invasion of American democracy.” A $100,000 Facebook ad buy seems unlikely to have had much impact in a $6.8 billion election. According to Facebook, “the vast majority of ads…didn’t specifically reference the US presidential election, voting or a particular candidate” but rather focused “on amplifying divisive social and political messages across the ideological spectrum—touching on topics from LGBT matters to race issues to immigration to gun rights.” Facebook also says the majority of ads, 56 percent, were seen “after the election.” The ads have not been released publicly. But by all indications, if they were used to try to elect Trump, their sponsors took a very curious route.


The ads are commonly described as “Russian disinformation,” but in the most extensive reporting on the story to date, The Washington Post adds multiple qualifiers in noting that the ads “appear to have come from accounts associated with the Internet Research Agency,” itself a Kremlin-linked firm (emphasis added).


The Post also reveals that an initial Facebook review of the suspected Russian accounts found that they “had clear financial motives, which suggested that they weren’t working for a foreign government.” Furthermore, “the security team did not find clear evidence of Russian disinformation or ad purchases by Russian-linked accounts.” But Russiagate logic requires a unique response to absent evidence: “The sophistication of the Russian tactics caught Facebook off-guard.”


The Post adds how Russian “sophistication” was overcome:





As Facebook struggled to find clear evidence of Russian manipulation, the idea was gaining credence in other influential quarters.



In the electrified aftermath of the election, aides to Hillary Clinton and Obama pored over polling numbers and turnout data, looking for clues to explain what they saw as an unnatural turn of events.



One of the theories to emerge from their post-mortem was that Russian operatives who were directed by the Kremlin to support Trump may have taken advantage of Facebook and other social media platforms to direct their messages to American voters in key demographic areas in order to increase enthusiasm for Trump and suppress support for Clinton.



These former advisers didn’t have hard evidence that Russian trolls were using Facebook to micro-target voters in swing districts—at least not yet—but they shared their theories with the House and Senate intelligence committees, which launched parallel investigations into Russia’s role in the presidential campaign in January.



The theories paid off. A personal visit in May by Democratic Senator Mark Warner, vice-chair of the Senate Intelligence Committee, “spurred the company to make some changes in how it conducted its internal investigation.” Facebook’s announcement in August of finding 3,000 “likely” Russian ads is now an ongoing “scandal” that has dragged the company before Congressional committees.


Other election threats loom. A recent front-page New York Times article linking Russian cyber operations to voting irregularities across the United States is headlined, “Russian Election Hacking Efforts, Wider Than Previously Known, Draw Little Scrutiny.” But read on and you’ll discover that there is no evidence of “Russian election hacking,” only evidence-free accusations of it. Voting problems in Durham, North Carolina, “felt like tampering, or some kind of cyberattack,” election monitor Susan Greenhalgh says, and “months later…questions still linger about what happened that day in Durham as well as other counties in North Carolina, Virginia, Georgia and Arizona.” There is one caveat: “There are plenty of other reasons for such breakdowns—local officials blamed human error and software malfunctions—and no clear-cut evidence of digital sabotage has emerged, much less a Russian role in it.”


The evidence-free concern over Russian hacking expanded in late September when the Department of Homeland Security informed 21 states that they had been targeted by Russian cyber-operations during the 2016 election. But three states have already dismissed the DHS claims, including California, which announced that after seeking “further information, it became clear that DHS’s conclusions were wrong.”


Recent elections in France and Germany saw similar fears of Russian hacking and disinformation—and similar results. In France, a hack targeting the campaign of election winner Emmanuel Macron ended up having “no trace,” of Russian involvement, and “was so generic and simple that it could have been practically anyone,” the head of French cyber-security quietly explained after the vote. Germany faced an even more puzzling outcome: Nothing happened. “The apparent absence of a robust Russian campaign to sabotage the German vote has become a mystery among officials and experts who had warned of a likely onslaught,” the Post reported in an article headlined “As Germans prepare to vote, a mystery grows: Where are the Russians?” The mystery was so profound that The New York Times also explored it days later: “German Election Mystery: Why No Russian Meddling?”


Following this evidentiary praxis, Russia can be blamed for matters far beyond Western elections. After the recent white-supremacist violence in Charlottesville, foreign-policy consultant Molly McKew issued a widely circulated appeal on Twitter: “We need to have a conversation about what is happening today in Charlottesville & Russian influence, and operations, in the United States.” (McKew recently testified at a US government hearing on “The Scourge of Russian Disinformation.”)


Writing for CNN, Yale Law School’s Asha Rangappa asserted that Charlottesville “highlighted again the problem of Russia.” Sure, Rangappa concedes, “there is no evidence to date that Russia is directly supporting extreme right groups in the United States.” But Russian government ties to the European far-right “when viewed through the lens of Trump’s response to Charlottesville, suggests an opening for Russian intelligence to use domestic hate groups as a vehicle for escalating their active measures inside the United States.”


Linking Russia to right-wing American racists contrasts with just a few months prior, when it was fashionable to tie Russia to the polar opposites. In March, intelligence-community witnesses soberly testified to Congress that Russia’s “21st-century cyber invasion” has “tried to sow unrest in the U.S. by inflaming protests such as Occupy Wall Street and the Black Lives Matter movement.” The evidence presented for this claim was that both movements were covered by the Russian state-owned television network RT.


Russian-linked tweets about NFL players kneeling during the national anthem to protest racial injustice show the Russians “trying to push divisiveness in this country,” says Republican Senator James Lankford. A Russian-linked ad about Black Lives Matter aimed at audiences in Ferguson and Baltimore “tells us…that the Russians who bought these ads were sophisticated enough to understand that targeting a Black Lives Matter ad to the communities…would help sow political discord.… the goal here was really about creating chaos,” says CNN reporter Dylan Byers.


But this story might actually tell us a lot more about the attitudes of pundits and lawmakers towards their audiences. On top of the 3,000 ads identified by Facebook, Twitter has now informed Congress of around 200 accounts “linked to Russian interference in the 2016 election.” Twitter has 328 million users. To suggest 200 accounts out of 328 million could have had an impact is as much an insult to common sense as it is to basic math. It also suggests Black Lives Matter protesters in places like Ferguson and Baltimore were unwitting foreign agents who needed Russian social-media prodding to march in the streets. To protest racism is not to sow “chaos” and “political discord,” but to protest racism.


Because the ads may have originated in Russia, it is widely taken for granted that they were part of an alleged Russian government plot. Few have considered a different scenario, pointed out by the journalist Max Blumenthal, that the ads could have been like those from any other troll farm: clickbait to attract page views.


Some who focus on Russiagate may be acting from the real fear and disorientation that follows from the victory of the most unqualified and unpredictable president in history. But those who partake, particularly those in positions of privilege, should consider that Russiagate offers them a safe and anodyne way to “Resist.” For privileged Americans to challenge Trump mainly over Russia is to do so in a way that avoids confronting their own relationship to the economic and political system that many of his voters rebelled against. “If the presidency is effectively a Russian op, if the American presidency right now is the product of collusion between the Russian intelligence services and an American campaign,” to borrow a scenario posed by Rachel Maddow, then there is nothing else to confront.


But economic discontent, along with voter suppression, the Democratic Party’s failures to reach voters, and corporate media that gave endless attention to Trump’s empty promises and racial animus, are among the issues cast aside by the incessant focus on Russigate, as are the very real US-Russia tensions that do not fit the narrative.


Amid widespread talk of Putin pulling the strings, Trump has quietly appointed anti-Russia hawks to key posts and admitted a new NATO member over Russian objections. Trump’s top military commander, Gen. Joseph Dunford, chairman of the Joint Chiefs of Staff, is backing an effort by the Pentagon and Congress to arm Ukraine with new weapons. President Obama had rejected a similar proposal out of fear it would inflame the country’s deadly conflict. Just before Russia’s recent war games with allied Belarus, the United States and NATO allies carried out their “biggest military exercise in eastern Europe since the Cold War” right next door.


These tensions only stand to worsen in a political climate in which diplomacy with Russia is seen as a weakness, and in which challenging it through sanctions and militarism is one of the few areas of bipartisan agreement. Conflict with a nuclear power may threaten the future annihilation of many, but it offers immediate benefits for some. “NATO concerns about Russia are seen as a positive for the defense industry,” the business press notes in reporting that military stocks have reached “all-time highs.” As have the ratings of MSNBC, the cable network that has pushed Russiagate more than any other.


Those unbound by Russiagate’s offerings need not succumb to them. Trump didn’t get to the White House via Russia, but by falsely portraying himself as a populist champion. The only con he will be undone by is his own.

Trump To Sign Executive Order Rolling Back Obamacare Regulations

It appears another "chat with Chuck" may result in a deal "win" for President Trump.



In a brief comment to reporters at The White House, Trump said this afternoon that he would be open to a one- or two-year deal as a way to reform the nation"s healthcare system...





"So if we could do a one-year deal or two-year deal as a temporary measure, you’ll have block granting ultimately to the states, which is what Republicans want."



With Republican efforts to repeal, replace, or re-anything Obamacare falling short numerous times, Trump is looking for a "win" and it appears he may get one.



The Hill reports that Trump will sign an executive order next week aimed at rolling back health insurance regulations put in place by former President Obama in an effort to undo his predecessor"s signature health care law, according to The Wall Street Journal.





The order will direct the Departments of Health and Human Services (HHS), Labor, and Treasury to make it easier for individuals to group together and purchase insurance through "association health plans," according to the report.



The president also directs the agencies in the order to roll back the Obama administration regulations of “short-term medical insurance,” which is a cheap limited protection option that the former administration claimed was did not provide adequate coverage for individuals.



The regulation requiring insurance plans to cover a set of package benefits will also be rolled back, according to The Journal.



The order is seen as an effort from the president to roll back parts of ObamaCare after his administration and Republicans failed to fulfill their seven-year campaign promise to repeal and replace the law.



While the move has been anticipated by industry officials and political observers in the days since the GOP repeal effort crashed, the move is most likely to unsettle Republicans, who have already watched Trump partner with congressional Democrats on a debt ceiling deal.
 

Harvey Weinstein's Lawyer Quits After Two Days As Democrats Scramble To Distance Themselves

Harvey Weinstein"s attorney Lisa Bloom cut ties suddenly with her "radioactive" movie mogul client in a terse Saturday tweet.


“I have resigned as an advisor to Harvey Weinstein,” wrote Bloom - ironically a women’s rights advocate - who was brought in after the Miramax Films co-founder was accused by the NYT of spending decades sexually harassing the women he worked with. “My understanding is that Mr. Weinstein and his board are moving toward an agreement.”



In a statement issued Thursday, Bloom said she was brought in to assist Harvey in using this “painful learning experience to grow into a better man.” The attorney also promised that “I will continue to work with him personally for as long as it takes."


Apparently, it took 2 days.


Bloom did not elaborate what the agreement involving Weinstein might entail. Weinstein, 65, was suspended indefinitely Friday by company officials, including his brother Bob, amid devastating allegations  of three decades of inappropriate behavior. Among those accusing Weinstein are actresses Ashley Judd and Rose McGowan.


According to Variety and the NY Post, brother Bob Weinstein was among those executives calling for his brother’s firing. Miramax also brought in attorney John Kiernan to conduct an internal company probe of Harvey Weinstein"s conduct amid reports that fellow executives wanted him out.


* * *


Meanwhile, Democrats - until this week proud recipients of Weinstein"s financial generosity - are rushing to distance themselves from the suddenly "radioactive" film producer.  According to The Hill, nearly a dozen Democratic senators, including Senate Minority Leader Charles Schumer (D-N.Y.) and several potential 2020 presidential contenders, are pledging to donate the contributions they’ve received from Weinstein over the years to nonprofit groups advocating for women who have been the victims of sexual abuse.


The Democratic National Committee (DNC) will give the money it received from Weinstein in the most recent campaign cycle to a trio of women’s groups (although in retrospect, they should probably also spend some on server protection and antivirus software). However, the DNC quickly came under fire for only donating a fraction of what it had received from Weinstein over the years, and for giving the money to political organizations rather than those that support victimized women.


“The allegations in the New York Times report are deeply troubling,” DNC communications director Xochitl Hinojosa told The Hill. “The Democratic Party condemns all forms of sexual harassment and assault. We hope that Republicans will do the same as we mark one year since the release of a tape showing President Trump bragging about sexually assaulting women followed by more than a dozen women who came forward to detail similar experiences of assault and harassment.”


Meanwhile, the Democratic campaign committees in Washington are working with lawmakers and their campaigns to assess how much Weinstein — whose donations date back to the early 1990s — might have given to their candidates and organizations.


* * *


Weinstein’s association with the Democratic Party runs deep. He has long been one of the most prominent figures on the donor circuit that runs through Hollywood. Many Democrats expressed disgust that Weinstein would open the party up to the same attacks they’ve levied against President Trump, whose “Access Hollywood” tape broke almost a year ago.


“The difference between Trump, Bill Cosby and Weinstein — none,” said Bob Mulholland, a Democratic National Committee member from California.


The Democratic disavowal of Weinstein began quickly after the publication of the Times story.


  • Schumer said he would give $14,200 received over the course of several campaign cycles to women’s groups, his office told The Hill.

  • Elizabeth Warren will donate the $5,000 she got from Weinstein to a Boston nonprofit group called Casa Myrna, which aids victims of domestic violence. Sen. Cory Booker (D-N.J.) will give $7,800 to the New Jersey Coalition Against Sexual Assault.

  • Al Franken is returning the most money — $19,600 given to both his campaign and a supporting super PAC — to the Minnesota Indian Women"s Resource Center. And Sen. Kirsten Gillibrand (D-N.Y.) is giving $11,800 — none of which was received in the most recent cycle — to RAINN, the nation’s largest group assisting victims of sexual violence.

  • Richard Blumenthal, Martin Heinrich, Bob Casey, and Patrick Leahy are among other lawmakers donating Weinstein’s contributions to women’s groups.

The amount of money the lawmakers received from Weinstein pales in comparison to what he has given to the DNC and the Democratic Senate and House campaign arms.


In total, Weinstein has given at least a quarter of a million dollars to the DNC over the years, with about $30,000 of that coming in the latest cycle. The DNC is giving the $30,000 to EMILY’s List, which supports women candidates that support abortion rights, Emerge America, which recruits and trains Democratic women for office, and Higher Heights, which supports black women running for office.


Weinstein’s influence went beyond his wallet. He was a top draw at Democratic fundraisers for former President Obama and Democratic presidential nominee Hillary Clinton, where tickets could run upwards of $35,000.


In 2015, Weinstein and his wife, Georgina Chapman, a fashion designer, hosted a fundraiser for Clinton in New York City, along with Vogue editor-in-chief Anna Wintour.  Weinstein had also teamed up with Wintour for at least two fundraisers for Obama in 2012, where a top-flight roster of liberal donors paid $35,800 to co-host and individuals paid $10,000 each to get in.


Spokespeople for Obama and Clinton did not respond to requests for comment.


Republicans hammered Democrats for the Weinstein connection, eagerly highlighting those who have yet to return funds he’s given dating back to 1993. "During three-decades worth of sexual harassment allegations, Harvey Weinstein lined the pockets of Democrats to the tune of three quarters of a million dollars,” said Republican National Committee chairwoman Ronna McDaniel. “If Democrats and the DNC truly stand up for women like they say they do, then returning this dirty money should be a no brainer."





Democrats were in no mood to hear that from Republicans, pointing to Trump’s own controversies and those at Fox News, where former chairman Roger Ailes and former anchor Bill O’Reilly were forced out amid sexual harassment accusations.



“The entire Republican Party, from the grass roots to the establishment, stayed with Donald Trump after they’d been made aware about what he said on the “Access Hollywood” tape,” said Jon Reinish, a Democratic consultant. “They all went on Bill O’Reilly and kissed Roger Ailes’ ring. I don’t want to hear from Republicans because they don’t have a leg to stand on here.”



Still, Democrats were doing their own soul searching about whether they had turned a blind eye toward Weinstein’s behavior, which was long the subject of rumors in Hollywood.


“There’s no question that for a long time Harvey was a mover and shaker and presence around fundraising structure of the party at a high level, he brought star wattage,” said one Democratic strategist.


“When the rumors are out there, whether about Harvey or someone else, all too many times they’ve turned out to be true. We need to do a better job of being true to our values and looking at the full picture, not just what someone can do for our movement.”

Tuesday, September 26, 2017

Series Of Videos Reveal That ESPN's Transition To MSNBC-Lite Is Now Complete

We should have known the moment that their Asian announcer, Robert Lee (did we mention he"s Asian), got pulled from the William and Mary vs. University of Virginia college football game last month for having the same name as a Confederate General that ESPN"s transition from sports commentary to "MSNBC-Lite" was inevitable.  Now, just one month after that fateful decision, it appears that ESPN"s metamorphosis is complete.


As the Daily Caller noted, the following series of clips from today on ESPN proves that the network has turned into a running political talk show centered around one man: President Trump.





When asked if Sunday’s protests were primarily against Trump rather than against racial injustice, ESPN commentator and former NFL safety Louis Riddick simply responded, “Sure.”



“Sure, because the players felt attacked and disrespected. The players are like, you are going there name calling because we are trying to protest against something we have a right and freedom to protest against peacefully, and you make it personal and use derogatory names and paint us all with a derogatory brush?” Riddick said.



“[Trump] is what they were protesting yesterday in and of itself, and spurred on the spike [in protests]. But I think the players in general, African-Americans in general, minorities in general, still have a bigger picture in mind. There is something bigger they are after. They are after equality and fair treatment but we can’t get there because all we keep talking about is, ‘should you had stand or shouldn’t you stand,"” he complained.





Meanwhile, Max Kellerman questioned whether President Trump would make it to the end of his first term in office just before launching into a tirade over Trump losing the popular vote.




And here is Kellerman explaining why LeBron James has every right to call the President a bum...though we do wonder whether he would have held the same opinion if a player made the same comments about President Obama.




Meanwhile, these guys managed to link the weekend"s entire controversy back to immigration reform!?!?




It seems that an incredibly aggressive strain of Trump Derangement Syndrome is now spreading throughout television studios all across the country.

Wednesday, September 20, 2017

Financialization & The Destruction Of The Real Economy

Authored by Charles Hugh Smith via OfTwoMinds blog,


Strip an economy of capital, productive incentives, talent and yes, ethics, and what are we left with? An economy spiraling toward an inevitable collapse.


Financialization is destroying the real economy, but few in power seem to notice or care. The reason why is painfully obvious: those in power are reaping vast fortunes from the engines of financialization--for example, former President Obama: Obama Goes From White House to Wall Street in Less Than One Year.


This is not to single out President Obama as a special case; politicos across the spectrum depend on the engines of financialization to fund their campaigns and make them multi-millionaires, and corporate managers and financiers have skimmed billions of dollars in gains not from producing new, better and more affordable goods and services but by playing financialization games such as borrowing billions to buy back stocks, leveraged buyouts, and so on--all of which have reaped the insiders gargantuan fortunes while hollowing out the real economy.


Financialization necessarily hollows out the real economy, as Gordon Long and I detail in this new video program: The Results of Financialization - Part I (34 minutes)



The key dynamic is that financialization creates irresistible incentives to ramp up debt and leverage at the expense of the real economy. Those who fail to exploit financialization will underperform the market and be fired.


As Gordon explains, if a CEO refuses to load a company up with debt, a private-equity financier with access to cheap Federal Reserve credit will scoop up the company in a private buyout, fire the management, extract immense profits by loading the company with debt, then take the hollowed-out shell public again, reaping another windfall of financialized gains.


Note that the private-equity financiers have every incentive to lay off employees, especially experienced workers who earn higher salaries, to reduce costs before they take the hollowed-out shell public.


How can corporations pay out more to shareholders than they actually earned? Easy--financialization.


Another key dynamic in financialization is limitless liquidity and super low interest rates set by central banks--rates that are so low and liquidity so abundant that corporations can roll over their debt and actually add more debt and keep their interest payments unchanged.


This dynamic inevitably leads to zombie corporations--corporations with low rates of growth and profitability and high debt loads that in an unfinancialized economy would be recognized as insolvent and liquidated.


As we explain, financialization skews the risk-reward in favor of financial games, so real-world investments no longer make sense. Why risk building a factory in the U.S. or training workers when the pay-off is uncertain, when there are so many ways to reap immense fortunes via financial games that are ultimately backstopped by the Federal Reserve or federal agencies (i.e. the taxpayers)?


As many observers have noted, these perverse incentives have siphoned human talent away from productive employment and into enormously well-compensated but parasitic, exploitive financialization-related jobs.



Strip an economy of capital, productive incentives, talent and yes, ethics, and what are we left with? An economy spiraling toward an inevitable collapse. The metaphor I"ve used to explain this in the past is the Yellowstone forest fire. The deadwood of bad debt, extreme leverage, zombie companies and all the other fallen branches of financialization pile up, but the central banks no longer allow any creative destruction of unpayable debt and mis-allocated capital; every brush fire is instantly suppressed with more stimulus, more liquidity and lower interest rates.


As a result, the deadwood sapping the real economy of productivity and innovation is allowed to pile higher.


The only possible output of this suppression is an economy piled high with explosive risk. Eventually Nature supplies a lightning strike, and the resulting conflagration consumes the entire economy.


The Yellowstone Analogy and The Crisis of Neoliberal Capitalism (May 18, 2009)


The Financial Markets Now Control Everything (April 29, 2015)


I explain all this in greater detail in my short book Why Our Status Quo Failed and Is Beyond Reform.


*  *  *


If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com. Check out both of my new books, Inequality and the Collapse of Privilege ($3.95 Kindle, $8.95 print) and Why Our Status Quo Failed and Is Beyond Reform ($3.95 Kindle, $8.95 print, $5.95 audiobook) For more, please visit the OTM essentials website.

Tuesday, September 5, 2017

So Deep, It's Sunk?

Authored by Robert Gore via StraightLineLogic.com,


If you strike the king but do not kill him, by definition your position is weak.



There has never have been a deeper deep state than the Soviet Union’s. It controlled everything: the military, intelligence, the judicial system, the rest of the government, the press, and the economy. It operated in shadows and darkness; there was no loyal opposition or media to shine the occasional light. Yet at 7:32 p.m., December 26, 1991, the Soviet flag was lowered from the Kremlin and replaced with the Russian flag. The Soviet of the Republics of the Supreme Soviet of the Soviet Union’s declaration number 142-H recognized the independence of the Soviet republics. Mikhail Gorbachev had resigned, handing power to Boris Yeltsin. The Soviet Union and its deep state were no more.


There are still lessons to be generally recognized from the fall of the Soviet Union.


First and foremost: command and control doesn’t work. That’s a lesson US commanders and controllers and their media and academic fellow travelers ignore at their peril. They cling to their cherished vision of American life directed from above, with the infamous Deep State at the apex of the power pyramid, the ultimate string pullers. Recent maneuvers, however, suggest a Deep State so tangled in its own strings that any attempt to free itself will only make the situation worse.


A deep state operates submerged from public view. The US deep state had to emerge in its effort to topple Trump, an emergence that screams weakness (see “Plot Holes”). The ineptitude of the effort made the weakness that much more apparent. A claim that Russia had hacked the Democratic Nation Committee (DNC) last summer and then used Wikileaks to disseminate what it had hacked, all in collusion with Donald Trump’s campaign, was the cornerstone of this maladroit coup. It should have raised more eyebrows than it did that the DNC refused to turn over its servers to the FBI for analysis, and that the only confirmation of the hacking claim came from a contractor, Crowdstrike, which had numerous conflicts of interest, including that it was paid by the DNC.


No objective, scientific analysis of the evidence was performed until that of the Veterans Intelligence Professionals for Sanity (VIPS). That group forensically analyzed the metadata associated with the alleged hack. The speed with which the material was downloaded precluded an Internet based hack. The only way it could have been downloaded so quickly was onto an external storage device. That’s a leak, not a remote hack. It had to have been done by someone with direct access to the DNC’s computer system, which suggests a DNC insider, perhaps Seth Rich.


Alternative news site consortiumnews.com published the VIPS’ analysis and conclusions . Mainstream “confirmation” followed at the left-leaning thenation.com. With its cornerstone gone, the Russian collusion story collapsed. For form’s sake Special Prosecutor Mueller will fan the embers for the next few months, perhaps uncovering a technical violation or two of this or that inconsequential law, perhaps releasing some sort of face saving report, but even the most rabid anti-Trumpers appear to recognize that the Russian hack dog won’t hunt.


If this is the best the supposed all-powerful deep state could come up with, then the deep state isn’t nearly as powerful as supposed. The way this affair was handled buttresses that conclusion, because it opens deep staters to serious legal liability.


Before the election they thought they would be shielded by a Clinton administration, but now they’re wide open to prosecution for a number of possible crimes. There is the FBI’s dereliction of duty, not performing its own analysis of DNC servers and accepting Crowdstrike’s conclusions without further scrutiny. (It was apparently in bed with the Clinton camp from the get-go.) There are the multiple leaks to friendly news outlets of classified information. There are the intelligence reports with their damning and much-reported, but evidence free, best assessments and probable conclusions. Potentially the most legally troublesome: a cabal of deep state insiders concocted their story to unseat a duly elected United States president. That makes out a prima facie case of treason.


If you strike the king but do not kill him, by definition your position is weak. He can exact ultimate retribution and your head is in a basket, or he can let you twist in the wind. The best guess is that Trump will do both, depending on the specifics of each conspirator’s situation and which course will be most useful to him.


When California Senator Diane Feinstein says conciliatory things about Trump, infuriating her base, you know things have changed. As ranking Democrat on the Senate Judiciary Committee, she has also joined chairman Charles Grassley requesting interviews with two high-ranking FBI officials concerning the discredited Trump dossier. She’s one of the shrewdest power players in Washington, a deep state stalwart. Her effort with Grassley and her conciliation aren’t magnanimous gestures from the bottom of her black heart. Rather she’s bending the knee; Trump has won the game of thrones.


When the major mainstream media outlets in unison condemn Antifa’s violent tactics, you know things have changed. George Soros, meet Donald Trump and the new order. The condemnations toss the latest kerfuffle about what Trump said after Charlottesville down the memory hole, and give Trump cover to do something about fringe violence in the future. The extremists are by no means finished; that wouldn’t serve anyone’s purposes. They’ll make handy scapegoats; you never know when there’s going to be a fire at the Reichstag.


There has been a tiresome litany of articles about Trump’s capture by the deep state, characterizing him as a puppet for the military and Goldman Sachs. Whatever idealism motivated his run for president is gone and he’s now supposedly just an errand boy. The commentators who bemoaned the firing of Michael Flynn dusted off their articles, changed and rearranged a few things, and bemoaned the departure of Steve Bannon. Poor Donald’s all by himself in big, bad Washington. Except he’s mowing down his enemies one by one (it looks like James Comey may be next), and he’s got the deep state cornered. As for his associates, if there’s one clear lesson from Trump’s life it’s that everyone—wives, employees, Goldman Sachs flunkies, generals, you name it—is expendable. Some of those he’s terminated in the past probably thought they had the upper hand.


Many of the same Trump-as-puppet commentators dusted off their articles bemoaning Trump’s bombing of the Syrian air base, changed and rearranged a few things, and bemoaned Trump’s Afghanistan escalation. Few of those latter articles mentioned that the Syrian government, with the aid of Russia, Iran, and Hezbollah, has turned the corner on quashing the rebellion, ISIS is on the run, and Syrian refugees are returning home. All of which sets the stage for the US to eventually leave Syria. Look for something similar to eventually play out in Afghanistan, and to go similarly unremarked upon.


Donald Trump didn’t risk all for the Iron Throne to let Goldman Sachs and the military run the show. He has allied with those power centers, but he’s calling the shots. Trump has allied with another power center: state and local police departments. He has given them fulsome, vocal support, encouragement to be more brutal, rescission of President Obama’s civil asset forfeiture rollback, and promises of more military gear. This is what one would expect of a ruler bent on consolidating his power—secure the praetorians. The Bill of Rights won’t stand in the way of sealing that alliance.


Trump’s supporters can’t believe their man’s primary motivation is acquiring power. Trump’s enemies, other than Senator Feinstein, can’t believe how good he is at it. Neither side will recognize the real danger until it’s too late. Legions of worrywarts fret that an erratic, captured Trump will go off half-cocked and press a nuclear button or do something else almost as stupidly devastating. What should worry them are the precise calculations and bloodless strategies of the most ruthlessly Machiavellian president since Franklin D. Roosevelt as he further consolidates and extends his power. Given present jurisprudence, nothing in the Constitution stands in his way.