America’s self-inflicted societal collapse

American Perspectives

American Mainstream Perspective
The vast majority of our population, mainstream America, maintains the belief that we are on the road to the promise land—perpetual economic growth and prosperity enabled by unlimited natural resources. Moreover, they believe that our American way of life is a birthright, our destiny; “the American way of life is not negotiable”.

Concerned Citizen Perspective
A small but growing minority of concerned citizens, the informed few, understands that we are actually on the highway to hell—the road to societal collapse. They implore us to slow down—to “conserve natural resources”, to “reduce our impact on the environment”, to “balance our budgets”… But we dare not do anything “too drastic”; it wouldn’t be “socially acceptable”.

Reality
The reality is that we are running flat out on the highway to hell, and that societal collapse is imminent—possibly within 5 years, probably within 15 years, and almost certainly within 25 years. Our only rational course of action is to “get off” the highway—to transition quickly and beginning immediately to a sustainable lifestyle paradigm. The consequences associated with “getting off” will be very painful—significant reductions in our population level and material living standards—but they pale in comparison to the consequences associated with “staying on”.

Chris Clugeston writes an impressive and encompassing article at the Energy Bulletin - do check it out.

Brigade homeland tours start Oct. 1

The 3rd Infantry Division’s 1st Brigade Combat Team has spent 35 of the last 60 months in Iraq patrolling in full battle rattle, helping restore essential services and escorting supply convoys.

Now they’re training for the same mission — with a twist — at home.

Beginning Oct. 1 for 12 months, the 1st BCT will be under the day-to-day control of U.S. Army North, the Army service component of Northern Command, as an on-call federal response force for natural or manmade emergencies and disasters, including terrorist attacks.

It is not the first time an active-duty unit has been tapped to help at home. In August 2005, for example, when Hurricane Katrina unleashed hell in Mississippi and Louisiana, several active-duty units were pulled from various posts and mobilized to those areas.

But this new mission marks the first time an active unit has been given a dedicated assignment to NorthCom, a joint command established in 2002 to provide command and control for federal homeland defense efforts and coordinate defense support of civil authorities.

Here's the moneyshot quote;

In the meantime, they’ll learn new skills, use some of the ones they acquired in the war zone and more than likely will not be shot at while doing any of it.

They may be called upon to help with civil unrest and crowd control or to deal with potentially horrific scenarios such as massive poisoning and chaos in response to a chemical, biological, radiological, nuclear or high-yield explosive, or CBRNE, attack.

The 1st BCT’s soldiers also will learn how to use “the first ever nonlethal package that the Army has fielded,” 1st BCT commander Col. Roger Cloutier said, referring to crowd and traffic control equipment and nonlethal weapons designed to subdue unruly or dangerous individuals without killing them.

“It’s a new modular package of nonlethal capabilities that they’re fielding. They’ve been using pieces of it in Iraq, but this is the first time that these modules were consolidated and this package fielded, and because of this mission we’re undertaking we were the first to get it.”

ArmyTimes - Your online resource for everything Army

The Strange Case Of The Wallflower Wealthy

these days, ostentatious displays of wealth are out. Nobody is allowed to talk about how much money they are making; no one is even allowed to talk about how much money they have lost. No one dares to be seen lounging around a golf course, skydiving out of a private jet or booking passage on the space shuttle, not while the four horsemen of the apocalypse are ripping through town. Everyone is expected to stay at home moping and eating celery stalks. If people who don't have money are hurting, people who do have money are expected to act as if they are not. This defeats the whole purpose of having money.

It also flies in the face of everything Americans believe about themselves, and it brings down the mood of the country. Study after study shows that Americans without money do not resent the rich, because they fully expect to join their ranks some day. What's more, they find the exploits of the rich both exciting and inspirational.

Forbes cheerleads the top.

The Money Masters

THE MONEY MASTERS is a 3 1/2 hour non-fiction, historical documentary that traces the origins of the political power structure that rules our nation and the world today. The modern political power structure has its roots in the hidden manipulation and accumulation of gold and other forms of money. The development of fractional reserve banking practices in the 17th century brought to a cunning sophistication the secret techniques initially used by goldsmiths fraudulently to accumulate wealth. With the formation of the privately-owned Bank of England in 1694, the yoke of economic slavery to a privately-owned "central" bank was first forced upon the backs of an entire nation, not removed but only made heavier with the passing of the three centuries to our day. Nation after nation, including America, has fallen prey to this cabal of international central bankers.

The President Speaks To The Nation

FDR's Fireside Chat on Backing Up the Banking System

The failure of many banks, runs on banks, and a general climate of financial panic played an important role in the Great Depression. After taking office in early March 1933, President Franklin D. Roosevelt made a radio address (a "Fireside Chat") outlining federal strategy to reopen the banking system. The system had been closed as part of a "bank holiday" declared by president to halt panics and runs. Although many other aspects of New Deal policy often receive more attention, backing up the banking system at least prevented the Depression from worsening. Prevention of financial panics remains an important economic policy in the contemporary world. This is Part 1.

More on AIG.....,

That interesting LATOC piece on AIG brought to our attention by Big Don was excerpted without attribution from a much more in-depth article published in 2001 by Michael Ruppert at From the Wilderness. The original article may be worth your perusal.

On the special value of reinsurance as a vehicle for intelligence gathering Fritz wrote:

"Such convoluted business dealings were traced largely through the work of Ernest Stiefel, a member of the intelligence unit who diagrammed the way insurance companies pooled their risks, invested in and insured each other and, as a result, willfully or witlessly shared data about nations at war. 'Stiefel mapped the entire system, said [Timothy] Naftali, a historian at the University of VirginiaÕs Miller Center of Public Affairs. "Each time I take a piece of your risk, youÕve got to give me information. I am not going to reinsure your company unless you give me all the documents. ThatÕs great intelligence informationÉ"

Later in the story Fritz confirmed the value of reinsurance as a vehicle for money laundering:

"With the Axis defeat imminent, U.S. intelligence officials focused greater attention on ways the Nazis would try to use insurance to hide and launder their assets so they could be used to rebuild the war machine..."

And how did Starr benefit from his service? Fritz writes:

"Starr sent insurance agents into Asia and Europe even before the bombs stopped falling and built what eventually became AIG, which today has its world headquarters in the same downtown New York building where the tiny OSS unit toiled in the deepest secrecy.

Starr died in 1968, but his empire endures. AIG is the biggest foreign insurance company in Japan. More than a third of its $40 billion in revenue last year came from the Far East theater that Starr helped carpet bomb and liberate.

Who'll Bail Out Uncle Sam?

CBS' Mark Knoller On The National Debt, And Who Picks Up the Tab

The federal government may seem like a financial knight on a white steed riding to the rescue of big companies in trouble. The irony is that Uncle Sam’s got enormous money problems of his own.

The government is far deeper in debt than any of the companies it’s bailing out.

As of this morning, the national debt stands at over $9.634 trillion. That’s trillion - with a "T." And that’s nearly $4 trillion more than it was on the day President Bush took office.

This year alone, it’s costing taxpayers more than $230 billion just to pay the interest on the national debt.

And it’s getting bigger every day thanks to the relentless rush of the government spending money it has to borrow. The federal deficit for the fiscal year ending September 30 is expected in the range of $400 billion - close to the all-time high.

In fact, the government doesn’t have the $85 billion needed to bailout insurance giant American International Group.

Still Pretending.....,

That we're not witnessing financial Armageddon.

"This has been the worst financial crisis since the Great Depression. There is no question about it," said Mark Gertler, a New York University economist who worked with fellow academic Ben Bernanke, now the Federal Reserve chairman, to explain how financial turmoil can infect the overall economy. "But at the same time we have the policy mechanisms in place fighting it, which is something we didn't have during the Great Depression."

Spreading Disease

The U.S. financial system resembles a patient in intensive care. The body is trying to fight off a disease that is spreading, and as it does so, the body convulses, settles for a time and then convulses again. The illness seems to be overwhelming the self-healing tendencies of markets. The doctors in charge are resorting to ever-more invasive treatment, and are now experimenting with remedies that have never before been applied. Fed Chairman Bernanke and Treasury Secretary Henry Paulson, walking into a hastily arranged meeting with congressional leaders Tuesday night to brief them on the government's unprecedented rescue of AIG, looked like exhausted surgeons delivering grim news to the family.

Fed and Treasury officials have identified the disease. It's called deleveraging, or the unwinding of debt. During the credit boom, financial institutions and American households took on too much debt. Between 2002 and 2006, household borrowing grew at an average annual rate of 11%, far outpacing overall economic growth. Borrowing by financial institutions grew by a 10% annualized rate. Now many of those borrowers can't pay back the loans, a problem that is exacerbated by the collapse in housing prices. They need to reduce their dependence on borrowed money, a painful and drawn-out process that can choke off credit and economic growth.

Worst Crisis Since '30s, With No End Yet in Sight

But the fact of the matter, is that the end IS in sight. It's just a very bleak and surprisingly rapid end that lots and lots of other interested observers saw coming many miles away too. Why not the operational management candidates sanctioned by the powers that be?

National security implications of AIG bailout...

This just in from Big Don;(explaining why we taxpayers now own an insurance company)

Editor's Note #1: The Bailout of AIG, the CIA, and Covert Operations

By now you no doubt have heard about the AIG bailout. If not, just check out this thread at the LATOC Forum. There is, however, something you almost certainly haven't heard about which is that the insurance business is heavily involved in covert operations. Some of you may be thinking "Huh? Insurance companeis and covert operations?! Wow, this is some real nutballery, even for LATOC". Well if so then just consider the following excerpts from an article entitled "The Secret (Insurance) Agent Men" by Los Angeles Times staff writer Mark Fritz, originally published on September 22nd, 2000.

(Security is Number One...)

Lord Make a Way, Lord Make a Way.....,

The pastor whose prayer Sarah Palin says helped her to become governor of Alaska founded his ministry with a witchhunt against a Kenyan woman who he accused of causing car accidents through demonic spells.

At a speech at the Wasilla Assembly of God on June 8 this year, Mrs Palin described how Thomas Muthee had laid his hands on her when he visited the church as a guest preacher in late 2005, prior to her successful gubernatorial bid.

In video footage of the speech, she is seen saying: “As I was mayor and Pastor Muthee was here and he was praying over me, and you know how he speaks and he’s so bold. And he was praying “Lord make a way, Lord make a way.”

“And I’m thinking, this guy’s really bold, he doesn’t even know what I’m going to do, he doesn’t know what my plans are. And he’s praying not “oh Lord if it be your will may she become governor,” no, he just prayed for it. He said “Lord make a way and let her do this next step. And that’s exactly what happened.”

- Full monty at timeonline blog - Palin linked electoral success to prayer of Kenyan witchhunter. Apparently, Bishop Muthee vetted Palin to approximately the same extent as the McCain campaign did.

McCain's campaign has sent at least one dozen researchers and lawyers to Alaska to pore over Palin's background, ready to respond to questions about her tenure as governor and mayor of Wasilla, a small town outside Anchorage. Griffin has been leading the team in Alaska, which includes operatives of the Republican National Committee.

Republicans are rebutting what they describe as smears against Palin. Last week, McCain's campaign formed a "truth squad," which includes current and former GOP politicians who agree to speak with reporters. Heading up the effort from Arlington, Va., are Mark Paoletta and O'Callaghan, both Republican lawyers, and Brian Jones, a former communications director for McCain.

Of course now the McCain campaign is working feverishly to rectify or suppress the continuous hemorrhaging of idiosyncratic details about Paling, her background, beliefs, family, politics, etc...,

Why Even Cheaper Oil Is Grim News

According to Businessweek - the sharp drop in crude prices is further fallout from the Wall Street crisis and evidence of economic weakness;

Any other day, Wall Street would have cheered a 5.4% drop in oil prices. That decline for crude futures, however, was accompanied by a nearly 5% tumble for the Standard & Poor's 500 index on Sept. 15. Stocks—as was made painfully clear to investors—are no longer trading inversely with oil prices.

Analysts say that investors, who had been pouring funds into commodities as an alternative to creaky stock markets, are now pulling out of the market. The withdrawal reflects a fear that the economic picture will remain bleak, causing reduced demand in both developed and developing countries. The price of a barrel of West Texas Intermediate crude oil slid $5.47, to settle at $95.71 on the New York Mercantile Exchange (CME). It was the first settlement below $100 per barrel in six months. "A weak economy and financial turmoil mean lower demand; that means lower [oil] prices," says Craig Pirrong, professor of finance and energy markets at the Bauer College of Business at the University of Houston.

If lower oil prices are here to stay, will consumers return to old patterns of consuming more petroleum products? Many analysts think not. "The demand destruction is irreversible," says Schork. "It's a situation of once bitten, twice shy. Prices may be down for now, but consumers know they could eventually move high again."

Corporations

Click the image to view and hear the presentation.

Ignition, in T-Minus......,

ISLAMABAD, Pakistan - Pakistan's army said Tuesday that its forces have orders to open fire if U.S. troops launch another raid across the Afghan border, raising the stakes in a dispute over how to tackle militant havens in Pakistan's unruly border zone.

Pakistan's government has faced rising popular anger over a Sept. 3 ground attack by U.S. commandos into South Waziristan, a base for Taliban militants killing ever more U.S. troops in Afghanistan. Pakistan says about 15 people were killed, all of them civilians.

The new firing orders were disclosed by Pakistani army spokesman Maj. Gen. Athar Abbas in an interview Tuesday with The Associated Press.

Abbas said Pakistani field commanders have previously been tolerant about international forces crossing a short way into Pakistan because of the ill-defined and contested nature of the mountainous frontier.

"But after the (Sept. 3) incident, the orders are clear," Abbas said. "In case it happens again in this form, that there is a very significant detection, which is very definite, no ambiguity, across the border, on ground or in the air: open fire."

The Fundamentals of Our Economy are at Risk

There IS a Risk of a Bank Run...,

Thank goodness for browser histories. Otherwise this phenomenal link and video would have been lost in the slipstream. I could not find it by searching this afternoon. Roubini calls this the perfect storm of the century. We have not seen anything like this since the Great Depression. In spite of doing everything under the sun, the situation is not getting any better.

Americans are justified to be worried, says Nouriel Roubini, of NYU's Stern School and RGE Monitor, who notes there is already a "slow-motion run on retail banks" occurring nationwide.

That "run" could accelerate as people realize the FDIC fund has about $50 billion to "insure" about $1 trillion in assets at the nation's financial institutions, says Roubini. "They're going to run out of money" unless Congress acts soon to recapitalize the FDIC.

In addition, the recent spike in number of banks on the FDIC's "troubled list" is only through June, meaning even that inflated number understates the problem.

The intent here isn't to add to people's anxieties, but Roubini is one of the few market watchers to correctly predict the severity of this ongoing credit crisis. If nothing else, he says people with accounts exceeding $100,000 in value should spread their money - and the risk - among different firms.

There is no systemic approach to dealing with this problem. Plugging holes one after another and no end in sight.

Foreign Ownership of U.S. Debt?

A few months ago, I asked the semi-rhetorical question, "Will China be Mad?" if the U.S. financial crisis costs them a trillion dollars or so. Subsequently, I wondered if it really even matters. In any event, Nouriel Roubini discussed it with brutal candor yesterday in yet another Tech Ticker piece - Big Risk: Surging Debt Makes U.S. More Dependent on China, Russia, Gulf States.

The big risk is that foreign holders of Treasuries will no longer accept low interest rates to help fund U.S. debt spending, says Roubini, noting countries like China, Russia and oil-producing nations in the Middle East have becoming increasingly important holders of Treasuries. Should they demand higher rates to hold U.S. debt or, worse, dump their holdings, it could have profound ramifications on the U.S. economy and the value of the dollar.Roubini further notes the Federal Reserve has put its balance sheet -- and independence -- at risk via its intimate involvement in thus-far failed attempts to stem the crisis.

It's tempting to dismiss the notion of a "run" on the U.S. government as unthinkable and some bears have been warning for years, even decades, about such a worst-case scenario. But after the events of this weekend, much less the past six months, it's clear that (almost) anything is possible and no scenario too "outrageous" to seriously contemplate.

The demise of Lehman Brothers, Merrill Lynch, and Bear Stearns this year has investors contemplating the long-term outlook for other once-venerable institutions, including Dow members Citigroup, AIG and Bank of America. But there's an even bigger financial institution with greater debt and an increasing level of bad loans on its books: The U.S. government.

Not Very Interesting....,

It is now thought that as many as 1,000 people have died so far in Haiti, with one million made homeless out of a population of 8.7 million. Rescue groups were last week reported to be unable to reach many villages across the southern region or to Gonaives, Haiti's third-largest city, which was cut off with 300,000 homeless residents. The city's population has been stranded for days without food or drinking water.

Recent performance fits as part of a consistent bias in media reporting. In the latest NACLA Report on the Americas, Dan Beeton of the US-based Center for Economic and Policy Research interviewed several US journalists who have reported from Haiti. Speaking on condition of anonymity, one described a common view among editors:

"Everyone knows the place [Haiti] is a mess, so what are you going to tell me that's new? What goes on there does not affect people in the US." (Beeton, 'Bad News From Haiti: U.S. Press Misses the Story,' September/October 2008, NACLA. See the full article here:)

This indifference has led to an appalling level of non-reporting, not just of the latest floods, but also of the killing of unarmed civilians by United Nations forces (Minustah), the Haitian National Police, and death squads.

Full Monty at MediaLens - "NOT VERY INTERESTING" - Haiti, New Orleans And Media Hypocrisy

The Fundamentals of the Economy are Strong