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FOURTH TURNING: THE PEOPLE vs BIG BROTHER « The Burning Platform
FOURTH TURNING: THE PEOPLE vs BIG BROTHER « The Burning Platform.
“The risk of catastrophe will be very high. The nation could erupt into insurrection or civil violence, crack up geographically, or succumb to authoritarian rule. If there is a war, it is likely to be one of maximum risk and effort – in other words, a total war. Every Fourth Turning has registered an upward ratchet in the technology of destruction, and in mankind’s willingness to use it.” – Strauss & Howe – The Fourth Turning
“In the need to develop a capacity to know what potential enemies are doing, the United States government has perfected a technological capability that enables us to monitor the messages that go through the air. Now, that is necessary and important to the United States as we look abroad at enemies or potential enemies. We must know, at the same time, that capability at any time could be turned around on the American people, and no American would have any privacy left such is the capability to monitor everything—telephone conversations, telegrams, it doesn’t matter. There would be no place to hide.
If this government ever became a tyrant, if a dictator ever took charge in this country, the technological capacity that the intelligence community has given the government could enable it to impose total tyranny, and there would be no way to fight back because the most careful effort to combine together in resistance to the government, no matter how privately it was done, is within the reach of the government to know. Such is the capability of this technology.
I don’t want to see this country ever go across the bridge. I know the capacity that is there to make tyranny total in America, and we must see to it that this agency and all agencies that possess this technology operate within the law and under proper supervision so that we never cross over that abyss. That is the abyss from which there is no return.” – Frank Church on Meet the Press regarding the NSA – 1975
Ever since Edward Snowden burst onto the worldwide stage in June 2013, I’ve been wondering how he fits into the fabric of this ongoing Fourth Turning. This period of Crisis that arrives like clockwork, 60 to 70 years after the end of the previous Fourth Turning (Civil War – 66 years after American Revolution, Great Depression/World War II – 64 years after Civil War, Global Financial Crisis – 62 years after World War II), arrived in September 2008 with the Federal Reserve created collapse of the global financial system. We are now five and a half years into this Fourth Turning, with its climax not likely until the late-2020’s. At this point in previous Fourth Turnings a regeneracy had unified sides in their cause and a grey champion or champions (Ben Franklin/Samuel Adams, Lincoln/Davis, FDR) had stepped forward to lead. Thus far, no one from the Prophet generation has been able to unify the nation and create a sense of common civic purpose. Societal trust continues to implode, as faith in political, financial, corporate, and religious institutions spirals downward. There is no sign of a unifying regeneracy on the horizon.
The core elements of this Fourth Turning continue to propel this Crisis: debt, civic decay, global disorder. Central bankers, politicians, and government bureaucrats have been able to fashion the illusion of recovery and return to normalcy, but their “solutions” are nothing more than smoke and mirrors exacerbating the next bloodier violent stage of this Fourth Turning. The emergencies will become increasingly dire, triggering unforeseen reactions and unintended consequences. The civic fabric of our society will be torn asunder.
In retrospect, the spark might seem as ominous as a financial crash, as ordinary as a national election, or as trivial as a Tea Party. The catalyst will unfold according to a basic Crisis dynamic that underlies all of these scenarios: An initial spark will trigger a chain reaction of unyielding responses and further emergencies. The core elements of these scenarios (debt, civic decay, global disorder) will matter more than the details, which the catalyst will juxtapose and connect in some unknowable way. If foreign societies are also entering a Fourth Turning, this could accelerate the chain reaction. At home and abroad, these events will reflect the tearing of the civic fabric at points of extreme vulnerability – problem areas where America will have neglected, denied, or delayed needed action.” – The Fourth Turning – Strauss & Howe
Debt
The core crisis element of debt is far worse than it was at the outset of this Crisis in September 2008. The National Debt has risen from $9.7 trillion to $17.5 trillion, an 80% increase in five and half years. It took 215 years for the country to accumulate as much debt as it has accumulated since the start of this Crisis. We continue to add $2.8 billion a day to the National debt, and the president declares it is time for this austerity to end. The total unfunded liabilities of the Federal government for Social Security, Medicare, Medicaid, government pensions and now Obamacare exceeds $200 trillion and is mathematically impossible to honor. Corporate debt stands at an all-time high. Margin debt is at record levels, as faith in the Federal Reserve’s ability to levitate the stock market borders on delusional. Consumer debt has reached new heights, as the government doles out subprime auto loans to deadbeats and subprime student loans to future University of Phoenix Einsteins. Global debt has surged by 40% since 2008 to over $100 trillion, as central bankers have attempted to cure a disease caused by debt with more debt.
All of this debt accumulation is compliments of Bernanke/Yellen and the Federal Reserve, who have produced this new debt bubble with their zero interest rate policy and quantitative easing that has driven their balance sheet from $935 billion of mostly Treasury bonds in September 2008 to $4.2 trillion of toxic mortgage garbage acquired from their owners – the insolvent Too Big To Trust Wall Street banks. This entire house of cards is reliant upon permanently low interest rates, the faith of foreigners in our lies, and trust in Ivy League educated economists captured by Wall Street. This debt laden house of cards sits atop hundreds of trillions of derivatives of mass destruction used by the Wall Street casinos to generate “riskless” profits. When, not if, a trigger ignites this explosive concoction of debt, the collapse will be epic and the violent phase of this Fourth Turning will commence.
Civic Decay
The core crisis element of civic decay is evident everywhere you turn. Our failed public educational system is responsible for much of the civic decay, as a highly educated critical thinking populace is our only defense against a small cabal of bankers and billionaires acquiring unwarranted influence and control over our country. Our children have been taught how to feel and to believe government propaganda. The atrocious educational system is not a mistake. It has been designed and manipulated by your owners to produce the results they desire, as explained bluntly by George Carlin.
“There’s a reason that education sucks, and it’s the same reason it will never ever ever be fixed. It’s never going to get any better, don’t look for it. Be happy with what you’ve got. Because the owners of this country don’t want that. I’m talking about the real owners now, the big, wealthy, business interests that control all things and make the big decisions. They spend billions of dollars every year lobbying to get what they want. Well, we know what they want; they want more for themselves and less for everybody else. But I’ll tell you what they don’t want—they don’t want a population of citizens capable of critical thinking. They don’t want well informed, well educated people capable of critical thinking. They’re not interested in that. That doesn’t help them. That’s against their interest.”
The urban ghettos become more dangerous and uninhabitable by the day. The inner cities are crumbling under the weight of welfare spending and declining tax revenues. The very welfare policies begun fifty years ago to alleviate poverty have hopelessly enslaved the poor and ignorant in permanent squalor and destitution. The four decade old drug war has done nothing to reduce the use of drugs. It has benefited the corporate prison industry, as millions have been thrown into prison for minor drug offenses. Meanwhile, millions more have been legally addicted to drugs peddled by the corporate healthcare complex. The culture warriors and advocates of new rights for every special interest group continue their never ending battles which receive an inordinate amount of publicity from the corporate media. Class warfare is simmering and being inflamed by politicians pushing their particular agendas. Violence provoked by race and religion is growing by the day. The fault lines are visible and the imminent financial earthquake will push distress levels beyond the breaking point. Once the EBT cards stop working, all hell will break loose. Three days of panic will empty grocery store shelves and the National Guard will be called out to try and restore control.
Global Disorder
The core crisis element of global disorder is evident everywhere you turn. The false flag revolution in the Ukraine, initiated by the U.S. and EU in order to blunt Russia’s control of natural gas to Europe, has the potential to erupt into a full blown shooting war at any moment. The attempt by Saudi Arabia, Israel and the U.S. to overthrow the Syrian dictator in order to run a natural gas pipeline across their land into Europe was blunted by Russia. Iraq is roiled in a civil war, after the U.S. invaded, occupied and destabilized the country. After 12 years of occupation, Afghanistan is more dysfunctional and dangerous than it was before the U.S. saved them from the evil Taliban. Unrest, violent protests, and brutal measures by rulers continue in Egypt, Turkey, Thailand, Venezuela, Bahrain, Brazil, and throughout Africa. American predator drones roam the skies of the world murdering suspected terrorists. The European Union is insolvent, with Greece, Spain, Italy and Portugal propped up with newly created debt. Austerity for the people and prosperity for the bankers is creating tremendous distress and tension across the continent. A global volcanic eruption is in the offing.
It is clear to me the American Empire is in terminal decline. Hubris, delusion, corruption, foolish disregard for future generations and endless foreign follies have set in motion a chain of events that will lead to a cascading sequence of debt defaults, mass poverty, collapsing financial markets, and hyperinflation or deflation, depending on the actions of feckless bankers and politicians. There is no avoiding the tragic outcome brought on by decades of bad choices and a century of allowing private banking interests to control our currency. The “emergency” QE and ZIRP responses by the Federal Reserve to the Federal Reserve created 2008 financial collapse continue, even though the propaganda peddled by the Deep State tries to convince the public we have fully recovered. This grand fraud cannot go on forever. Ponzi schemes no longer work once you run out of dupes. With societal trust levels approaching all-time lows and foreign countries beginning to understand they are the dupes, another global financial crisis is a lock.
The Snowden Factor
With ten to fifteen years likely remaining in this Fourth Turning Crisis, people familiar with generational turnings can’t help but ponder what will happen next. Linear thinkers, who constitute the majority, mistakenly believe things will magically return to normal and we’ll continue our never ending forward human progress. Their ignorance of history and generational turnings that recur like the four seasons will bite them in the ass. We are being flung forward across the vast chaos of time and our existing social order will be transformed beyond recognition into something far better or far worse. The actual events over the coming decade are unknowable in advance, but the mood and reactions of the generational archetypes to these events are predictable. The actions of individuals will matter during this Fourth Turning. The majority are trapped in their propaganda induced, techno distracted stupor of willful ignorance. It will take a minority of liberty minded individuals, who honor the principles of the U.S. Constitution and are willing to sacrifice their lives, to prevail in the coming struggle.
Despite fog engulfing the path of future events, we know they will be propelled by debt, civic decay, and global disorder. Finding a unifying grey champion figure seems unlikely at this point. I believe the revelations by Edward Snowden have set the course for future events during this Fourth Turning. The choices of private citizens, like Snowden, Assange, and Manning, have made a difference. The choices we all make over the next ten years will make a difference. A battle for the soul of this country is underway. The Deep State is firmly ingrained, controlling the financial, political and educational systems, while using their vast wealth to perpetuate endless war, and domination of the media to manipulate the masses with propaganda and triviality. They are powerful and malevolent. They will not relinquish their supremacy and wealth willingly.
Snowden has revealed the evil intent of the ruling class and their willingness to trash the Constitution in their psychopathic pursuit of mammon. The mass surveillance of the entire population, locking down of an entire city in pursuit of two teenagers, military training exercises in major metropolitan areas, militarization of local police forces by DHS, crushing peaceful demonstrations with brute force, attempting to restrict and confiscate guns, molesting innocent airline passengers, executive orders utilized on a regular basis by the president, and treating all citizens like suspects has set the stage for the coming conflict. Strauss & Howe warned that history has shown armed conflict is always a major ingredient during a Fourth Turning.
“History offers even more sobering warnings: Armed confrontation usually occurs around the climax of Crisis. If there is confrontation, it is likely to lead to war. This could be any kind of war – class war, sectional war, war against global anarchists or terrorists, or superpower war. If there is war, it is likely to culminate in total war, fought until the losing side has been rendered nil – its will broken, territory taken, and leaders captured.” – The Fourth Turning – Strauss & Howe -1997
It appears to me the Deep State is preparing for armed conflict with the people. Why else would they be utilizing Big Brother methods of surveillance, militarization of police forces and Gestapo like tactics of intimidation to control the masses? This doesn’t happen in a democratic republic where private individuals are supposed to know everything done by public government servants, not vice versa. They know the cheap, easy to access energy resources are essentially depleted. They know the system they have built upon a foundation of cheap energy and cheap debt is unsustainable and will crash in the near future. They know their fiat currency scheme is failing.They know it is going to come crashing down.
They know America and the world will plunge into an era of depression, violence, and war. They also know they want to retain their wealth, power and control. There is no possibility the existing establishment can be purged through the ballot box. It’s a one party Big Brother system that provides the illusion of choice to the Proles. Like it or not, the only way this country can cast off the shackles of the banking, corporate, fascist elites, and the government surveillance state is through an armed revolution. The alternative is to allow an authoritarian regime, on par with Hitler, Stalin and Mao, to rise from the ashes of our financial collapse.This is a distinct possibility, given the ignorance and helplessness of most Americans after decades of government education and propaganda.
The average mentally asleep American cannot conceive of armed conflict within the borders of the U.S. War, violence and dead bodies are something they see on their 52 inch HDTVs while gobbling chicken wings and cheetos in their Barcalounger. We’ve allowed a banking cartel and their central bank puppets to warp and deform our financial system into a hideous façade, sold to the masses as free market capitalism. We’ve allowed corporate interests to capture our political system through bribery and corruption.
We’ve allowed the rise of a surveillance state that has stripped us of our privacy, freedom, liberty and individuality in a futile pursuit of safety and security. We’ve allowed a military industrial complex to exercise undue influence in Washington DC, leading to endless undeclared wars designed to enrich the arms makers. We’ve allowed the corporate media and the government education complex to use propaganda, misinformation and social engineering techniques to dumb down the masses and make them compliant consumers. These delusions will be shattered when our financial and economic system no longer functions. The end is approaching rapidly and very few see it coming.
Glory or Ruin?
The scenario I envision is a collapse of our debt saturated financial system, with a domino effect of corporate, personal, and governmental defaults, exacerbated by the trillions of currency, interest rate, and stock derivatives. Global stock markets will crash. Trillions in paper wealth will evaporate into thin air. The Greater Depression will gain a choke-hold around the world. Mass bankruptcies, unemployment and poverty will sweep across the land. The social safety net will tear under the weight of un-payable entitlements. Riots and unrest will breakout in urban areas. Armed citizens in rural areas will begin to assemble in small units. The police and National Guard will be unable to regain control. The military will be called on to suppress any and all resistance to the Federal government. This act of war will spur further resistance from liberty minded armed patriots. The new American Revolution will have begun. Leaders will arise in the name of freedom. Regional and local bands of fighters will use guerilla tactics to defeat a slow top heavy military dependent upon technology and vast quantities of oil. A dictatorial regime may assume power on a Federal level. A breakup of the nation into regional states is a distinct possibility.
With the American Empire crumbling from within, our international influence will wane. With China also in the midst of a Fourth Turning, their debt bubble will burst and social unrest will explode into civil war. Global disorder, wars, terrorism, and financial collapse will lead to a dramatic decrease in oil production, further sinking the world into depression. The tensions caused by worldwide recession will lead to the rise of authoritarian regimes and global warfare. With “advances” in technological warfare and the proliferation of nuclear warheads, this scenario has the potential to end life on earth as we know it. The modern world could be set back into the stone-age with the push of a button. There are no guarantees of a happy ending for humanity.
The outcome of this Fourth Turning is dependent upon the actions of a minority of critical thinking Americans who decide to act. No one can avoid the trials and tribulations that lie ahead. We will be faced with immense challenges. Courage and sacrifice will be required in large doses. Elders will need to lead and millennials will need to carry a heavy load, doing most of the dying. The very survival of our society hangs in the balance. Edward Snowden has provided an example of the sacrifice required during this Fourth Turning. How we respond and the choices we make over the next decade will determine whether this Fourth Turning will result in glory or ruin for our nation.
“Eventually, all of America’s lesser problems will combine into one giant problem. The very survival of the society will feel at stake, as leaders lead and people follow. The emergent society may be something better, a nation that sustains its Framers’ visions with a robust new pride. Or it may be something unspeakably worse. The Fourth Turning will be a time of glory or ruin.” – Strauss & Howe – The Fourth Turning
Click these links to read the first two parts of this three part series:
Do No Evil Google – Censor & Snitch for the State
Sound Money – Podcasts from money experts around the world. | Casey Research
Sound Money – Podcasts from money experts around the world. | Casey Research.

Complete Breakdown of Financial Controls in US Government, Says Austin Fitts
Former HUD Assistant Housing Secretary and investment advisor Catherine Austin Fitts reveals her thoughts on the ever-rising debt ceiling… what Obamacare is really about (and that’s not socialized healthcare)… why over $4 trillion missing from federal programs may not be incompetence, but a covert strategy… how to protect yourself from the constant devaluation of the US dollar… and what exactly the Popsicle Index measures and why it matters.
Here are a few excerpts:
“I don’t see Obamacare as something designed to offer healthcare. … I think the question comes down to a bigger one, which is, are we going to create a society where one hundred percent of everything is digitized and under central control?”
“Who is the governance system, and why are they behaving the way they are behaving? What we see is literally a psychopathic effort and intensity—whether it is in the energy area, whether it is in the currency area, whether it is in the food area, whether it is in the healthcare area—to get 100% central control and to use digital means to do it, and the question is why?”
“Well, you have a complete breakdown of internal financial controls in the US government. … You had over $4 trillion of what is called undocumentable adjustments and to this day, [these agencies] have never, as required by law, produced audited financial statements.”
“In my experience, government is not incompetent at all. … Gridlock is a cover story, incompetence is a cover story. There is a plan, you just can’t see what it is.”
Sat, 22 February 2014
Host Andy Duncan speaks to the publisher of the Solari Report and President of Solari Inc, Catherine Austin Fitts. Topics include quality of life indicator – The Popsicle Index, the selective efficiency of government, the debt ceiling, and investing in gold. Direct download: Catherine_Austin_Fitts_FINAL.mp3
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Sound Money – Podcasts from money experts around the world. | Casey Research
Sound Money – Podcasts from money experts around the world. | Casey Research.

Complete Breakdown of Financial Controls in US Government, Says Austin Fitts
Former HUD Assistant Housing Secretary and investment advisor Catherine Austin Fitts reveals her thoughts on the ever-rising debt ceiling… what Obamacare is really about (and that’s not socialized healthcare)… why over $4 trillion missing from federal programs may not be incompetence, but a covert strategy… how to protect yourself from the constant devaluation of the US dollar… and what exactly the Popsicle Index measures and why it matters.
Here are a few excerpts:
“I don’t see Obamacare as something designed to offer healthcare. … I think the question comes down to a bigger one, which is, are we going to create a society where one hundred percent of everything is digitized and under central control?”
“Who is the governance system, and why are they behaving the way they are behaving? What we see is literally a psychopathic effort and intensity—whether it is in the energy area, whether it is in the currency area, whether it is in the food area, whether it is in the healthcare area—to get 100% central control and to use digital means to do it, and the question is why?”
“Well, you have a complete breakdown of internal financial controls in the US government. … You had over $4 trillion of what is called undocumentable adjustments and to this day, [these agencies] have never, as required by law, produced audited financial statements.”
“In my experience, government is not incompetent at all. … Gridlock is a cover story, incompetence is a cover story. There is a plan, you just can’t see what it is.”
Sat, 22 February 2014
Host Andy Duncan speaks to the publisher of the Solari Report and President of Solari Inc, Catherine Austin Fitts. Topics include quality of life indicator – The Popsicle Index, the selective efficiency of government, the debt ceiling, and investing in gold. Direct download: Catherine_Austin_Fitts_FINAL.mp3
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Guest Post: Underneath Their Autocratic Rulers, Russia And U.S. On Diverging Societal Paths | Zero Hedge
Submitted by L. Todd Wood, a former special operations helicopter pilot and bond trader.
Underneath Their Autocratic Rulers, Russia and U.S. on Diverging Societal Paths
As the State of the Union address highlighted, both the Russia Federation and the United States have leaders that lean toward various degrees of autocratic government to achieve their agendas. President Putin rules with an iron fist and treats the legislative branch as an afterthought to use as needed but otherwise ignores. President Obama declares he will use executive action to get what he wants and quietly uses government agencies to intimidate and stifle his opposition in flagrant abuses of power. Putin has dismantled the Russian free press and imprisoned vocal opponents. The majority of the American press does Obama’s bidding for him while the administration puts movie makers in jail.
Underneath the tyrannical policies of the two Presidents, American and Russian society are diverging. First let’s look at welfare – it really doesn’t exist in Russia. If you’re a single mother raising your child alone, the state will pay you less than $50 a month. Unemployment insurance is also miniscule. The minimum wage is around $200 a month. I recently asked a Russian friend what they would receive if they lost their job. Her answer was, “It’s my problem, why should the government pay?” Health care is free but of very low quality. Russians with money typically choose private care and buy their own private health insurance.
In the United States, we are seeing an obscene explosion of the nanny-state. Obamacare has been exposed as a huge wealth redistribution scheme. The CBO states that the ACA is a disincentive to work. Disability payments are skyrocketing. The number of Americans receiving food stamps has doubled and is spiraling out of control. Welfare work requirements have been weakened. The left continuously pushes to add more immigrants to the government dole and refuses to enforce current immigration law.
The difference in the tax code between the two countries is also striking. If you live in New York, the combined government tax bite is above sixty percent. It is a safe bet that any Democratic state government will continue to try and raise taxes. Obama raised rates on the top earners in America and would boost them across the board if he could. In Russia, the individual tax rate is a flat thirteen percent. There is an eighteen percent VAT and the corporate rate is twenty-four percent. If Russia could remove her corrupt barriers to entry, her economy would explode higher.
The difference between the two nations when approaching geopolitical challenges cannot be more extreme. The United States has shown a willingness to abandon long standing allies time and time again on the global chessboard. Whether it be Israel, Poland, or Saudi Arabia, the Obama administration has shrank from global leadership and left a gigantic vacuum for President Putin to happily fill. Russia has shown a willingness to ignore Western political correctness and stand up for Russian long-term interests. One only has to look to the Iranian nuclear issue, the Syrian situation, or the Snowden embarrassment to see evidence of Putin schooling the American government. The American position seems to consist of avoiding conflict and appeasing adversaries rather than standing up for historical American values, our allies, and our way of life.
One of the most interesting differences that has been inconveniently obvious in the international press is the Russian refusal to embrace the religion of global warming. While the American government strives to shut down energy economic engines of power, Russia uses energy to achieve its national goals. Putin has been quoted as describing the climate change alarmist agenda as a marketing scheme. Putin has not bought into the madness of crowds to the benefit of Russia.
Perhaps the most curious cavern between the United States and Russia is their approach to religion. The church was effectively shut down during the Soviet experiment. However, in the last few decades, the Russian Orthodox Church has roared back to favor in Russian government opinion. President Putin has even felt emboldened enough to accuse the West of being morally decadent. The Democratic Party in the United States has largely morphed into an atheistic, anything goes, hedonist entity. One only has to look at the refusal of the Obama administration to enforce marijuana laws in America to find evidence of this fact.
I recently had a conversation with a young urban professional in Moscow. Their comment to me was that most young Russians were embarrassed of the communist revolution in Russia. “They killed our best people,” this person commented. I find it curious that the Rolling Stone recently published an article extolling the benefits of the teachings of Karl Marx and echoing the mindset of many of the current millennial generation in America. When the youth of American are yearning for communism, I fear America must relearn the very harsh lessons of the past. If Russia can ever deal with the specter of corruption, her society may leap to the future.
Peter Schiff Destroys The “Deflation Is An Ogre” Myth | Zero Hedge
Peter Schiff Destroys The “Deflation Is An Ogre” Myth | Zero Hedge.
Submitted by Peter Schiff via Euro Pacific Capital,
Dedicated readers of The Wall Street Journal have recently been offered many dire warnings about a clear and present danger that is stalking the global economy. They are not referring to a possible looming stock or real estate bubble (which you can find more on in my latest newsletter). Nor are they talking about other usual suspects such as global warming, peak oil, the Arab Spring, sovereign defaults, the breakup of the euro, Miley Cyrus, a nuclear Iran, or Obamacare. Instead they are warning about the horror that could result from falling prices, otherwise known as deflation. Get the kids into the basement Mom… they just marked down Cheerios!
In order to justify our current monetary and fiscal policies, in which governments refuse to reign in runaway deficits while central banks furiously expand the money supply, economists must convince us that inflation, which results in rising prices, is vital for economic growth.
Simultaneously they make the case that falling prices are bad. This is a difficult proposition to make because most people have long suspected that inflation is a sign of economic distress and that high prices qualify as a problem not a solution. But the absurdity of the position has not stopped our top economists, and their acolytes in the media, from making the case.
A January 5th article in The Wall Street Journal described the economic situation in Europe by saying “Anxieties are rising in the euro zone that deflation-the phenomenon of persistent falling prices across the economy that blighted the lives of millions in the 1930s-may be starting to take root as it did in Japan in the mid-1990s.” Really, blighted the lives of millions? When was the last time you were “blighted” by a store’s mark down? If you own a business, are you “blighted” when your suppliers drop their prices? Read more about Europe’s economy in my latest newsletter.
The Journal is advancing a classic “wet sidewalks cause rain” argument, confusing and inverting cause and effect. It suggests that falling prices caused the Great Depression and in turn the widespread consumer suffering that went along with it. But this puts the cart way in front of the horse. The Great Depression was triggered by the bursting of a speculative bubble (resulted from too much easy money in the latter half of the 1920s). The resulting economic contraction, prolonged unnecessarily by the anti-market policies of Hoover and Roosevelt, was part of a necessary re-balancing.A bad economy encourages people to reduce current consumption and save for the future. The resulting drop in demand brings down prices.
But lower prices function as a counterweight to a contracting economy by cushioning the blow of the downturn. I would argue that those who lived through the Great Depression were grateful that they were able to buy more with what little money they had. Imagine how much worse it would have been if they had to contend with rising consumer prices as well. Consumers always want to buy, but sometimes they forego or defer purchases because they can’t afford a desired good or service. Higher prices will only compound the problem. It may surprise many Nobel Prize-winning economists, but discounts often motivate consumers to buy – -try the experiment yourself the next time you walk past the sale rack.
Economists will argue that expectations for future prices are a much bigger motivation than current prices themselves. But those economists concerned with deflation expect there to be, at most, a one or two percent decrease in prices. Can consumers be expected not to buy something today because they expect it to be one percent cheaper in a year? Bear in mind that something that a consumer can buy and use today is more valuable to the purchaser than the same item that is not bought until next year. The costs of going without a desired purchase are overlooked by those warning about the danger of deflation
In another article two days later, the Journal hit readers with the same message: “Annual euro-zone inflation weakened further below the European Central Bank’s target in December, rekindling fears that too little inflation or outright consumer-price declines may threaten the currency area’s fragile economy.” In this case, the paper adds “too little inflation” to the list of woes that needs to be avoided. Apparently, if prices don’t rise briskly enough, the wheels of an economy stop turning
Neither article mentions some very important historical context. For the first 120 years of the existence of the United States (before the establishment of the Federal Reserve), general prices trended downward. According to the Department of Commerce’s Statistical Abstract of the United States, the “General Price Index” declined by 19% from 1801 to 1900. This stands in contrast to the 2,280% increase of the CPI between 1913 and 2013
While the 19th century had plenty of well-documented ups and downs, people tend to forget that the country experienced tremendous economic growth during that time. Living standards for the average American at the end of the century were leaps and bounds higher than they were at the beginning. The 19th Century turned a formerly inconsequential agricultural nation into the richest, most productive, and economically dynamic nation on Earth. Immigrants could not come here fast enough. But all this happened against a backdrop of consistently falling prices.
Thomas Edison once said that his goal was to make electricity so cheap that only the rich would burn candles. He was fortunate to have no Nobel economists on his marketing team.They certainly would have advised him to raise prices to increase sales. But Edison’s strategy of driving sales volume through lower prices is clearly visible today in industries all over the world. By lowering prices, companies not only grow their customer base, but they tend to increase profits as well. Most visibly, consumer electronics has seen chronic deflation for years without crimping demand or hurting profits. According to the Wall Street Journal, this should be impossible.
The truth is the media is merely helping the government to spread propaganda. It is highly indebted governments that need inflation, not consumers. But before government can lead a self-serving crusade to create inflation, they must first convince the public that higher prices is a goal worth pursuing. Since inflation also helps sustain asset bubbles and prop up banks, in this instance The Wall Street Journal and the Government seem to be perfectly aligned.
Activist Post: Why Are Dozens Of High Ranking Officers Being Purged From The U.S. Military?
Activist Post: Why Are Dozens Of High Ranking Officers Being Purged From The U.S. Military?.
Michael Snyder
Activist Post
Since Barack Obama has been in the White House, high ranking military officers have been removed from their positions at a rate that is absolutely unprecedented. Things have gotten so bad that a number of retired generals are publicly speaking out about the “purge” of the U.S. military that they believe is taking place.
As you will see below, dozens of highly decorated military leaders have been dismissed from their positions over the past few years. So why is this happening?
When I was growing up, my father was an officer in the U.S. Navy. And what is going on right now is absolutely crazy – especially during a time of peace. Is there a deliberate attempt to “reshape” the military and remove those that don’t adhere to the proper “viewpoints”? Does someone out there feel a need to get officers that won’t “cooperate” out of the way?
Throughout world history, whatever comes next after a “military purge” is never good. If this continues, what is the U.S. military going to look like in a few years?
Perhaps you are reading this and you think that “purge” is too strong a word for what is taking place. Well, just consider the following quotes from some very highly decorated retired officers…
–Retired Army Major General Paul Vallely: “The White House protects their own. That’s why they stalled on the investigation into fast and furious, Benghazi and Obamacare. He’s intentionally weakening and gutting our military, Pentagon and reducing us as a superpower, and anyone in the ranks who disagrees or speaks out is being purged.”
–Retired Army Major General Patrick Brady: “There is no doubt he (Obama) is intent on emasculating the military and will fire anyone who disagrees with him.”
–Retired Army Lt. General William G. “Jerry” Boykin: “Over the past three years, it is unprecedented for the number of four-star generals to be relieved of duty, and not necessarily relieved for cause.”
–Retired Navy Captain Joseph John: “I believe there are more than 137 officers who have been forced out or given bad evaluation reports so they will never make Flag (officer), because of their failure to comply to certain views.”
According to the Blaze, one anonymous Pentagon official has said that even young officers have been told “not to talk about Obama or the politics of the White House”…
A Pentagon official who asked to remain nameless because they were not authorized to speak on the matter said even “young officers, down through the ranks have been told not to talk about Obama or the politics of the White House. They are purging everyone and if you want to keep your job — just keep your mouth shut.”
Now this trend appears to be accelerating. We have seen a whole bunch of news stories about military officers being dismissed lately.
Almost always, a “legitimate reason” is given for the dismissal. And without a doubt, if a military officer is actually behaving unethically, that officer should be held accountable.
However, the reality is that everyone has “skeletons in the closet”, and if you really want to get rid of someone it is usually not too hard to find a way to justify your decision.
The following are excerpts from three news stories about military officers in trouble that have come out so far in 2014…
#1 The Air Force Times: A group of former Air Force majors, forced out this summer by a noncontinuation board, plans to file a lawsuit claiming the service had no right to separate them simply to meet end-strength numbers set by Congress.
More than 10 of the 157 dismissed majors are banding together to challenge the move in court, seeking either reinstatement or early retirement pay. All 157 had been twice passed over for promotion and were within six years of retirement.
#2 Defense News: Acting US Navy Undersecretary Robert Martinage, the department’s No. 2, has resigned under pressure, sources confirmed for Defense News.
The resignation, which Martinage announced to his staff Tuesday morning, came after allegations were made of inappropriate conduct with a subordinate woman, the sources confirmed.
#3 Huffington Post: The Air Force says 34 nuclear missile launch officers have been implicated in a cheating scandal and have been stripped of their certification in what is believed to be the largest such breach of integrity in the nuclear force.
Some of the officers apparently texted to each other the answers to a monthly test on their knowledge of how to operate the missiles. Others may have known about it but did not report it.
The cheating was discovered during a drug investigation that involves 11 Air Force officers across six bases in the U.S. and England.
Taken alone, it would be easy to dismiss those stories as “coincidences”. But when you put them together with the stories of dozens of other high ranking military officers that have been purged from the U.S. military in recent years, a very disturbing pattern emerges.
The following is a list of high ranking military officers that have been dismissed over the past few years that has been circulating all over the Internet. I think that you will agree that this list is quite stunning…
Commanding Generals fired:
- General John R. Allen-U.S. Marines Commander International Security Assistance Force [ISAF] (Nov 2012)
- Major General Ralph Baker (2 Star)-U.S. Army Commander of the Combined Joint Task Force Horn in Africa (April 2013)
- Major General Michael Carey (2 Star)-U.S. Air Force Commander of the 20th US Air Force in charge of 9,600 people and 450 Intercontinental Ballistic Missiles (Oct 2013)
- Colonel James Christmas-U.S. Marines Commander 22nd Marine Expeditionary Unit & Commander Special-Purpose Marine Air-Ground Task Force Crisis Response Unit (July 2013)
- Major General Peter Fuller-U.S. Army Commander in Afghanistan (May 2011)
- Major General Charles M.M. Gurganus-U.S. Marine Corps Regional Commander of SW and I Marine Expeditionary Force in Afghanistan (Oct 2013)
- General Carter F. Ham-U.S. Army African Command (Oct 2013)
- Lieutenant General David H. Huntoon (3 Star), Jr.-U.S. Army 58th Superintendent of the US Military Academy at West Point, NY (2013)
- Command Sergeant Major Don B Jordan-U.S. Army 143rd Expeditionary Sustainment Command (suspended Oct 2013)
- General James Mattis-U.S. Marines Chief of CentCom (May 2013)
- Colonel Daren Margolin-U.S. Marine in charge of Quantico’s Security Battalion (Oct 2013)
- General Stanley McChrystal-U.S. Army Commander Afghanistan (June 2010)
- General David D. McKiernan-U.S. Army Commander Afghanistan (2009)
- General David Petraeus-Director of CIA from September 2011 to November 2012 & U.S. Army Commander International Security Assistance Force [ISAF] and Commander U.S. Forces Afghanistan [USFOR-A] (Nov 2012)
- Brigadier General Bryan Roberts-U.S. Army Commander 2nd Brigade (May 2013)
- Major General Gregg A. Sturdevant-U.S. Marine Corps Director of Strategic Planning and Policy for the U.S. Pacific Command & Commander of Aviation Wing at Camp Bastion, Afghanistan (Sept 2013)
- Colonel Eric Tilley-U.S. Army Commander of Garrison Japan (Nov 2013)
- Brigadier General Bryan Wampler-U.S. Army Commanding General of 143rd Expeditionary Sustainment Command of the 1st Theater Sustainment Command [TSC] (suspended Oct 2013)
Commanding Admirals fired:
- Rear Admiral Charles Gaouette-U.S. Navy Commander John C. Stennis Carrier Strike Group Three (Oct 2012)
- Vice Admiral Tim Giardina(3 Star, demoted to 2 Star)-U.S. Navy Deputy Commander of the US Strategic Command, Commander of the Submarine Group Trident, Submarine Group 9 and Submarine Group 10 (Oct 2013)
Naval Officers fired: (All in 2011)
- Captain David Geisler-U.S. Navy Commander Task Force 53 in Bahrain (Oct 2011)
- Commander Laredo Bell-U.S. Navy Commander Naval Support Activity Saratoga Springs, NY (Aug 2011)
- Lieutenant Commander Kurt Boenisch-Executive Officer amphibious transport dock Ponce (Apr 2011)
- Commander Nathan Borchers-U.S. Navy Commander destroyer Stout (Mar 2011)
- Commander Robert Brown-U.S. Navy Commander Beachmaster Unit 2 Fort Story, VA (Aug 2011)
- Commander Andrew Crowe-Executive Officer Navy Region Center Singapore (Apr 2011)
- Captain Robert Gamberg-Executive Officer carrier Dwight D. Eisenhower (Jun 2011)
- Captain Rex Guinn-U.S. Navy Commander Navy Legal Service office Japan (Feb 2011)
- Commander Kevin Harms- U.S. Navy Commander Strike Fighter Squadron 137 aboard the aircraft carrier Abraham Lincoln (Mar 2011)
- Lieutenant Commander Martin Holguin-U.S. Navy Commander mine countermeasures Fearless (Oct 2011)
- Captain Owen Honors-U.S. Navy Commander aircraft carrier USS Enterprise (Jan 2011)
- Captain Donald Hornbeck-U.S. Navy Commander Destroyer Squadron 1 San Diego (Apr 2011)
- Rear Admiral Ron Horton-U.S. Navy Commander Logistics Group, Western Pacific (Mar 2011)
- Commander Etta Jones-U.S. Navy Commander amphibious transport dock Ponce (Apr 2011)
- Commander Ralph Jones-Executive Officer amphibious transport dock Green Bay (Jul 2011)
- Commander Jonathan Jackson-U.S. Navy Commander Electronic Attack Squadron 134, deployed aboard carrier Carl Vinson (Dec 2011)
- Captain Eric Merrill-U.S. Navy Commander submarine Emory S. Land (Jul 2011)
- Captain William Mosk-U.S. Navy Commander Naval Station Rota, U.S. Navy Commander Naval Activities Spain (Apr 2011)
- Commander Timothy Murphy-U.S. Navy Commander Electronic Attack Squadron 129 at Naval Air Station Whidbey Island, WA (Apr 2011)
- Commander Joseph Nosse-U.S. Navy Commander ballistic-missile submarine Kentucky (Oct 2011)
- Commander Mark Olson-U.S. Navy Commander destroyer The Sullivans FL (Sep 2011)
- Commander John Pethel-Executive Officer amphibious transport dock New York (Dec 2011)
- Commander Karl Pugh-U.S. Navy Commander Electronic Attack Squadron 141 Whidbey Island, WA (Jul 2011)
- Commander Jason Strength-U.S. Navy Commander of Navy Recruiting District Nashville, TN (Jul 2011)
- Captain Greg Thomas-U.S. Navy Commander Norfolk Naval Shipyard (May 2011)
- Commander Mike Varney-U.S. Navy Commander attack submarine Connecticut (Jun 2011)
- Commander Jay Wylie-U.S. Navy Commander destroyer Momsen (Apr 2011)
Naval Officers fired: (All in 2012):
- Commander Alan C. Aber-Executive Officer Helicopter Maritime Strike Squadron 71 (July 2012)
- Commander Derick Armstrong- U.S. Navy Commander missile destroyer USS The Sullivans (May 2012)
- Commander Martin Arriola- U.S. Navy Commander destroyer USS Porter (Aug 2012)
- Captain Antonio Cardoso- U.S. Navy Commander Training Support Center San Diego (Sep 2012)
- Captain James CoBell- U.S. Navy Commander Oceana Naval Air Station’s Fleet Readiness Center Mid-Atlantic (Sep 2012)
- Captain Joseph E. Darlak- U.S. Navy Commander frigate USS Vandegrift (Nov 2012)
- Captain Daniel Dusek-U.S. Navy Commander USS Bonhomme
- Commander David Faught-Executive Officer destroyer Chung-Hoon (Sep 2012)
- Commander Franklin Fernandez- U.S. Navy Commander Naval Mobile Construction Battalion 24 (Aug 2012)
- Commander Ray Hartman- U.S. Navy Commander Amphibious dock-landing ship Fort McHenry (Nov 2012)
- Commander Shelly Hakspiel-Executive Officer Navy Drug Screening Lab San Diego (May 2012)
- Commander Jon Haydel- U.S. Navy Commander USS San Diego (Mar 2012)
- Commander Diego Hernandez- U.S. Navy Commander ballistic-missile submarine USS Wyoming (Feb 2012)
- Commander Lee Hoey- U.S. Navy Commander Drug Screening Laboratory, San Diego (May 2012)
- Commander Ivan Jimenez-Executive Officer frigate Vandegrift (Nov 2012)
- Commander Dennis Klein- U.S. Navy Commander submarine USS Columbia (May 2012)
- Captain Chuck Litchfield- U.S. Navy Commander assault ship USS Essex (Jun 2012)
- Captain Marcia Kim Lyons- U.S. Navy Commander Naval Health Clinic New England (Apr 2012)
- Captain Robert Marin- U.S. Navy Commander cruiser USS Cowpens (Feb 2012)
- Captain Sean McDonell- U.S. Navy Commander Seabee reserve unit Naval Mobile Construction Battalion 14 FL (Nov 2012)
- Commander Corrine Parker- U.S. Navy Commander Fleet Logistics Support Squadron 1 (Apr 2012)
- Captain Liza Raimondo- U.S. Navy Commander Naval Health Clinic Patuxent River, MD (Jun 2012)
- Captain Jeffrey Riedel- Program manager, Littoral Combat Ship program (Jan 2012)
- Commander Sara Santoski- U.S. Navy Commander Helicopter Mine Countermeasures Squadron 15 (Sep 2012)
- Commander Kyle G. Strudthoff-Executive Officer Helicopter Sea Combat Squadron 25 (Sep 2012)
- Commander Sheryl Tannahill- U.S. Navy Commander Navy Operational Support Center [NOSC] Nashville, TN (Sep 2012)
- Commander Michael Ward- U.S. Navy Commander submarine USS Pittsburgh (Aug 2012)
- Captain Michael Wiegand- U.S. Navy Commander Southwest Regional Maintenance Center (Nov 2012)
- Captain Ted Williams- U.S. Navy Commander amphibious command ship Mount Whitney (Nov 2012)
- Commander Jeffrey Wissel- U.S. Navy Commander of Fleet Air Reconnaissance Squadron 1 (Feb 2012)
Naval Officers fired: (All in 2013):
- Lieutenant Commander Lauren Allen-Executive Officer submarine Jacksonville (Feb 2013)
- Reserve Captain Jay Bowman-U.S. Navy Commander Navy Operational Support Center [NOSC] Fort Dix, NJ (Mar 2013)
- Captain William Cogar-U.S. Navy Commander hospital ship Mercy’s medical treatment facility (Sept 2013)
- Commander Steve Fuller-Executive Officer frigate Kauffman (Mar 2013)
- Captain Shawn Hendricks-Program Manager for naval enterprise IT networks (June 2013)
- Captain David Hunter-U.S. Navy Commander of Maritime Expeditionary Security Squadron 12 & Coastal Riverine Group 2 (Feb 2013)
- Captain Eric Johnson-U.S. Navy Chief of Military Entrance Processing Command at Great Lakes Naval Training Center, IL (2013)
- Captain Devon Jones-U.S. Navy Commander Naval Air Facility El Centro, CA (July 2013)
- Captain Kevin Knoop-U.S. Navy Commander hospital ship Comfort’s medical treatment facility (Aug 2013)
- Lieutenant Commander Jack O’Neill-U.S. Navy Commander Operational Support Center Rock Island, IL (Mar 2013)
- Commander Allen Maestas-Executive Officer Beachmaster Unit 1 (May 2013)
- Commander Luis Molina-U.S. Navy Commander submarine Pasadena (Jan 2013)
- Commander James Pickens-Executive Officer frigate Gary (Feb 2013)
- Lieutenant Commander Mark Rice-U.S. Navy Commander Mine Countermeasures ship Guardian (Apr 2013)
- Commander Michael Runkle-U.S. Navy Commander of Mobile Diving and Salvage Unit 2 (May 2013)
- Commander Jason Stapleton-Executive Office Patrol Squadron 4 in Hawaii (Mar 2013)
- Commander Nathan Sukols-U.S. Navy Commander submarine Jacksonville (Feb 2013)
- Lieutenant Daniel Tyler-Executive Officer Mine Countermeasures ship Guardian (Apr 2013)
- Commander Edward White-U.S. Navy Commander Strike Fighter Squadron 106 (Aug 2013)
- Captain Jeffrey Winter-U.S. Navy Commander of Carrier Air Wing 17 (Sept 2013)
- Commander Thomas Winter-U.S. Navy Commander submarine Montpelier (Jan 2013)
- Commander Corey Wofford- U.S. Navy Commander frigate Kauffman (Feb 2013)
So what do you think about all of this?
Do you believe that a “purge” of high ranking military officers is taking place?
Please feel free to share what you think by posting a comment below…
This article first appeared here at the American Dream. Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here.
Case of the Missing Recovery: Paul Craig Roberts
Case of the Missing Recovery: Paul Craig Roberts
No Jobs For Americans
Paul Craig Roberts
The alleged recovery took a direct hit from Friday’s payroll jobs report. The Bureau of Labor Statistics reported that the economy created 74,000 net new jobs in December.
Wholesale and retail trade accounted for 70,700 of these jobs or 95.5%. It is likely that the December wholesale and retail hires were temporary for the Christmas shopping season, which doesn’t seem to have been very exuberant, especially in light of Macy’s decision to close five stores and lay off 2,500 employees. It is a good bet that these December hires have already been laid off.
A job gain of 74,000, even if it is real, is about half of what is needed to keep the unemployment rate even with population growth. Yet the Bureau of Labor Statistics reports that the unemployment rate fell from 7.0% to 6.7%. Clearly, this decline in unemployment was not caused by the reported 74,000 jobs gain. The unemployment rate fell, because Americans unable to find jobs ceased looking for employment and, thereby, ceased to be counted as unemployed.
In America the unemployment rate is a deception just like everything else. The rate of American unemployment fell, because people can’t find jobs. The fewer the jobs, the lower the unemployment rate.
I noticed today that the financial media presstitutes were a bit hesitant to hype the drop in the rate of unemployment when there was no jobs growth to account for it. The Wall Street and bank economists did their best to disbelieve the jobs report as did some of the bought-and-paid-for academic economists. Too many interests have a stake in the non-existent recovery declared 4.5 years ago to be able to admit that it is not really there.
I have been examining the monthly jobs reports for a decade or longer. I must say that I am struck by the December report. Normally, a mainstay of jobs gain is the category “education and health services,” with “ambulatory health care services” adding thousands of jobs. In December the net contribution of “education and health services” was zero, with “ambulatory health care services” losing 4,100 jobs and health care losing 6,000 jobs. If memory serves, this is a first. Perhaps it reflects adverse impacts of the ripoff known as Obamacare, possibly the worst piece of domestic legislation passed in decades.
I was also struck by the report that the gain in employment of waitresses and bartenders, normally a large percentage of the job gain, was down to 9,400 jobs, which were offset by declines elsewhere, such as the layoff of local school teachers.
Aren’t Washington’s priorities wonderful? $1,000 billion per year in Quantitative Easing, essentially subsidies for 6 banks “too big to fail,” and nothing for school teachers. It should warm every Republican’s heart.
A tiny bright spot in the payroll jobs report is 9,000 new manufacturing jobs. The US manufacturing workforce has declined so dramatically since jobs offshoring became the policy of American corporations that 9,000 jobs hardly register on the scale. Fabricated metal products, which I think is roofing metal, accounted for 56% of the manufacturing jobs. Roofing metal is not an export. Employment in the production of manufactured products that could be exported, such as “computer and electronic equipment,” and “electronic instruments” declined by 2,400 and 3,500 respectively.
Clearly, this is not a payroll jobs report that provides cover for the looting of the prospects of ordinary Americans by the financial and offshoring elites. One can wonder how the BLS civil servants who produced it can avoid retribution. It will be interesting to see what occurs in the January payroll jobs report.
The World According To Ron Paul | Zero Hedge
The World According To Ron Paul | Zero Hedge.
With 72% of those polled believing “big Government” is more of a problem now than 4 years ago, it is hardly surprising that Ron Paul blasts “the failure of government is all around us” in this brief FOX news interview. Perhaps it is the fact that “Obamacare has been such a trasparent failure of big government,” along with Keynesian economics, and the NSA debacles; that more and more of even the most liberal are realizing just what America has become. “It’s really great news that people are starting to recognize this,” Paul adds, because there is no way to replace the status quo “until people give up on what we have.”