Thursday, February 24, 2011

Wikileaks? Friend or Foe?

Just some thoughts and info on WikiLeaks.. Think about it they have never released anything damaging about the United States, Great Britain, or even Israel.. These so called leaked cables were about Mid-East diplomats and their lavish lifestyle. And if you read yesterdays blog put this one with it. Sounds like a good way to start a revolution over their doesn't it? Oh wait thats is happing all over the Mid-East right now.. So think about it WikiLeaks helped the Mid- East and OUR intrest over their as well... Just my thoughts tell me what you think good or bad?

Awareness is growing around the world that the Wikileaks-Julian Assange theater of the absurd is radically inauthentic – a psyop. Wikileaks and its impaired boss represent a classic form of limited hangout or self-exposure, a kind of lurid striptease in which the front organization releases doctored and pre-selected materials provided by the intelligence agency with the intent of harming, not the CIA, nor the UK, nor the Israelis, but rather such classic CIA enemies’ list figures as Putin, Berlusconi, Karzai, Qaddafi, Rodriguez de Kirchner, etc. In Tunisia, derogatory material about ex-President Ben Ali leaked by Wikileaks has already brought a windfall for Langley in the form of the rare ouster of an entrenched Arab government.

At Foggy Bottom and Langley, a manic fit has been building since the flight of Ben Ali. US imperialist planners now believe they can re-launch their shopworn model of the color revolution, CIA people-power coup, or postmodern putsch against a whole series of countries in the Arab world and far beyond, including Italy. The color revolutions had been looking tarnished lately, as a result of the failure of the Twitter Revolution in Iran back in June 2009. Previously, the Cedars Revolution of 2005 had failed in Lebanon. The Orange Revolution in Ukraine had been rolled back with the ouster of NATO-IMF kleptocrats Yushchenko and Timoshenko. In Georgia, the Roses Revolution was increasingly discredited by the repressive and warmongering regime of fascist madman Saakashvili.

US Seeks to Mobilize a New Generation of Young Nihilists Across the Globe

But now, NSC, State, and CIA believe that the color revolution has a new lease on life, thanks to their estimate that the United States, because of Wikileaks and Assange, has captured the imagination of a new generation of young nihilists across the globe who are described as the post-9/11 generation, estranged from governments and opposition parties, and thus ready to follow Langley’s peroxide Pied Piper.

Assange started his intensive deployment phase this year with video of a Class A US war crime in Iraq, which was very graphic but which dealt with an incident which was already widely known. The second document dump focused on Iraq, but now the targeting had shifted to Prime Minister Maliki, and the Iranian asset whom the US by some strange coincidence was trying to oust as leader of Iraq in favor of the US puppet Allawi. With the third document dump, this time involving State Department cables, we found out much derogatory gossip about such classic CIA targets as Russian prime minister Putin, Italian Prime Minister Berlusconi, the Russian-Italian strategic alliance, President Fernandez de Kirchner of Argentina, and President Karzai of Afghanistan, along with jabs at supposed US allies who need to be kept off-balance and dependent, including the Saudi Arabian royal family, French President Sarkozy, and others. Wikileaks thus directs the vast majority of its fire against figures who are part of the CIA’s enemies list.

No Equal Time for CIA Covert Operations

Assange also provides a splendid pretext for draconian censorship and limitations on the freedom of the internet. The totalitarian liberal Senator Feinstein wants to bring back Woodrow Wilson’s infamous Espionage Act of 1917 in honor of Assange. Assange must be seen not as an activist, not as a journalist, and not as an entertainer, but rather as a spook. John Young of Cryptome, according to some reports, has denounced Wikileaks, to which he formerly belonged, as a CIA front. In a December 29 RT interview, Young described the internet as “a very large-scale spying machine.”1 The internet is indeed a vast battlefield, where the intelligence agencies of the US-UK, China, Israel, Russia, and many others clash every hour of the day, with commercial spies, hackers, anarchists, cultists, mercenary trolls, and psychotics all getting into the act as well. Intelligence agencies deliberately feed real and doctored material to various websites, sometimes using their own disgruntled employees as cutouts, conduits, and go-betweens. This means among other things that Bradley Manning cannot be taken at face value, although it is also clear that he like anyone else should not be tortured.

Assange is now famous, it might be argued. But the Wall Street controlled media can make anyone famous, from Lady Gaga to Justin Bieber to Snooki, and this is what they have done with Assange. It is wrong to capitulate to the demagogic power of these media by making it appear that there might be some legitimate value to Assange. Up to now, the CIA has been organizing color revolutions using Twitter, Facebook, Youtube, and so forth as vehicles. Now they think they have a cult figure whom they can sell to the youth bulge in the Arab world and other developing countries, where most of the population is under 30. This is an operation which must be exposed.

Most recently, Wikileaks has played a role in the CIA’s new “Jasmine Revolution” in Tunisia by publishing some State Department cables about the sybaritic luxury and lavish lifestyle of the Ben Ali clan, leading to the downfall of that regime. The CIA is now gloating that with the help of Wikileaks it can now topple all the Arab regimes at will, from Mubarak to Qaddafi to Bouteflika, and replace them with new and more pliable puppets eager to clash with Iran, Russia, and China.

If Assange ever launches his much-touted doomsday machine against the Bank of America or some other financial institutions, we will be justified in asking that the Securities and Exchange Commission make public the extent of short interest in those stocks by certain hedge funds, especially those controlled by George Soros. And as far as Assange’s attacks on the Vatican are concerned, they fit neatly into four centuries of British intelligence warfare against the Holy See, going back to Guy Fawkes and Lord Robert Cecil’s Gunpowder Plot of 1605 and beyond. Not much new or radical here.

Wikileaks: No Serious Derogatory Information about US, UK, Israel

It is illuminating that none of Assange’s document dumps have revealed any notable scandals involving Great Britain or Israel. No US public figures have had to resign because of anything Wikileaks has done. No major ongoing covert operation or highly placed agent of influence has been blown. After all these months, there are still no US indictments against Assange, even though we know that a US grand jury will readily indict a ham sandwich if the US Attorney demands it. If the CIA had wanted to silence Assange, they could have subjected him to the classic kidnapping aka rendition, meaning that he would have been beaten, drugged, and carted off to wake up in a black site prison in Egypt, Poland, or Guantanamo Bay. Otherwise, the CIA could have had recourse to the usual extralegal wetwork. We must also assume that the new US Cybercommand with its vast resources would have little trouble shutting down the Wikileaks mirror sites, no matter how numerous they might be. The same goes for Anonymous and other flanking organizations of Wikileaks. But these considerations are purely fantastic. Assange emerges today as the pampered darling and golden boy of The New York Times, Der Spiegel, The Guardian, El Pais — in short, of the entire Anglo-American official media Wurlitzer. He reclines today in baronial splendor in the country house of a well-connected retired British officer who should be quizzed by the media about his ties to British intelligence. The radical-chic world, from Bianca Jagger to Michael Moore, is at Assange’s feet.

Cass Sunstein Present at the Creation of Wikileaks

Wikileaks was apparently founded in 2006. Originally, the group was programmed to attack China, and its board was heavily larded with fishy Chinese dissidents and “democracy” activists from the orbit of the Soros foundations. Interestingly, the first big publicity breakthrough for Wikileaks in the mainstream US media was provided by an infamous totalitarian liberal today ensconced in the Obama White House – none other than Cass Sunstein. In Sunstein’s op-ed published in the Washington Post of February 24, 2007 under the title “Brave new Wikiworld,” we read: “Wikileaks.org, founded by dissidents in China and other nations, plans to post secret government documents and to protect them from censorship with coded software.” How interesting that Sunstein was present at the creation of the new Wikileaks psywar operation!

This is the same Sunstein who today heads Obama’s White House Office of Information and Regulatory Affairs. In his January 2008 Harvard Law School Working Paper entitled “Conspiracy Theories,” Sunstein infamously demanded that the United States government deploy groups of covert operatives and pseudo-independent agents of influence for the “cognitive infiltration of extremist groups” – meaning organizations, activists and Internet websites who espouse beliefs which Sunstein chooses to classify as “false conspiracy theories.”

Wikileaks = Cass Sunstein’s Program for Cognitive Infiltration In Action

It should be clear that Assange and Wikileaks are precisely the practical realization of Sunstein’s program for “cognitive infiltration” shock troops to counteract and overwhelm any real mass understanding of oligarchical domination in the modern world, and any discussion of what kind of economic policies are needed to secure a recovery from the present world depression.

In line with Sunstein’s recipe, Assange is a self-declared enemy of 9/11 truth. As Assange told Belfast Telegraph reporter Matthew Bell last July, “I’m constantly annoyed that people are distracted by false conspiracies such as 9/11, when all around we provide evidence of real conspiracies, for war or mass financial fraud.” In other words, Assange argues that the truth about 9/11 truth is not nearly as radical as the various scandals which Wikileaks claims to expose. But the scandals Assange is offering target mostly the adversaries of the CIA.

Assange must also be seen as a deeply troubled individual and a possible psychopath. He has the ravaged emotional complexion that we might expect from an alumnus of one of the many MK-Ultra operations. He reportedly spent several years in the menticidal Anne Hamilton-Byrne cult (also known as The Family and Santiniketan) near Melbourne, Australia. Here little children were separated from their parents and made to ingest LSD, Anatensol, Diazepam, Haloperidol, Largactil, Mogadon, Serepax, Stelazine, Tegretol, Tofranil, and other potent psychopharmaca. Dozens of children were told that Hamilton-Byrne was their real mother, and had their hair dyed blond. Anne Hamilton-Byrne reportedly regarded blond hair as a sign of racial superiority. Careful observers will have noted that Assange’s hair is sometimes blond, sometimes more brownish, raising the question of whether his grooming practices are a residue of his time with Hamilton-Byrne, whom he says he does not remember. When other kids were getting cookies and milk, was Assange being lobotomized by LSD and other potent psychopharmaca dished up by Hamilton-Byrne? There is evidence pointing in that direction.

With Assange, we thus have the tragic spectacle of the emotionally mutilated product of a CIA (or MI-6) covert operation of 40 years ago, who has now been given a prominent role in a key counter-insurgency ploy of the present time. Will the youth of the world, already burned by their recent fatuous obsession with Obama, be duped again by such an impaired individual?

The Precedent: Pentagon Papers Whitewashed CIA, Blamed Army, Demonized Kennedy

Assange’s revelations mainly involve communications labeled Confidential or Secret, and which in reality would be over-classified if marked Official Use Only. In other words, Assange is in reality a purveyor of low level cable traffic, not of earth-shattering secrets. This reminds us of an earlier CIA limited hangout operation, the one known as the Pentagon Papers. This was a carefully screened selection of historical documents, supplemented by outright forgeries, relating to the Vietnam War and compiled by Morton Halperin and Leslie Gelb, both of whom have gone on to glittering careers in the imperialist foreign policy establishment – Gelb became president of the Council on Foreign Relations, while Halperin serves today as chief political officer of the Soros wolfpack of foundations. The papers were leaked by former RAND Corporation official Daniel Ellsberg, who had been a very bellicose hawk in Vietnam before a suspicious Damascus Road conversion to pacifism, and then published in the US establishment press – similarly to Assange today. There was nothing in the Pentagon papers which a casual reader of LeMonde or Corriere della Sera did not already know. But, as Mort Sahl later said, left liberals have generally had very few heroes, so they battened on to Ellsberg and lionized him – led by Noam Chomsky, Howard Zinn, and some others. (This is a syndrome which we see again today: at the moment when Obama’s treacherous sellout on the Bush tax cuts was providing a final disillusionment for many gullible left libs, Assange arrived on the scene as their new Savior. Not by chance, Ellsberg has now designated Assange as his own reincarnation, and thus surely the new Messiah.)

The Pentagon papers had been carefully selected by the CIA itself to cover up CIA war crimes in Vietnam, blaming these on the US Army wherever possible, while also obscuring the CIA’s massive program of drug production and narcotics smuggling. The Pentagon Papers systematically hid the salient political fact of the entire Vietnam era, which is that President John F. Kennedy before he was assassinated was preparing to end the de facto US combat role in that country. Instead, Kennedy was systematically demonized and smeared, emerging as the villain of the piece. Needless to say, the Pentagon papers throw no light whatsoever on the CIA role in the Kennedy assassination – in the same way that Assange’s various document dumps tell us nothing of importance about 9/11, the Rabin assassination, Iran-contra, the 1999 bombing of Serbia, the Kursk incident, the various CIA color revolutions, or many of the other truly big covert operations of the past decades.

The limited hangout is not new; it was described in a secret memorandum by Venetian intelligence chief Paolo Sarpi to the Venetian Senate in 1620 as the art of “saying something good about somebody while pretending to be saying something bad.” That is the common denominator of the CIA’s limited hangout operations from Ellsberg to Philip Agee to Assange, with so many other “former” CIA operatives turned “whistleblowers” along the way.
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1John Young of Cryptome, “‘Internet a very large-scale spying machine’ – info leaking site co-founder,” RT, 29 December, 2010, at http://rt.com/news/cryptome-classified-secret-wikileaks/

http://tarpley.net/2011/01/20/wikileaks-cognitive-infiltration-operation/

Wednesday, February 23, 2011

IS THE US NEXT?

People are tired of being forced to comply with what the governments are forcing upon them all over the world. My question is this is the United States next? And what would happen if it did? Just things to think on. Drop me a line and let me know what you think.

Two months ago, a Tunisian fruit vendor lit a match, starting a fire that has spread throughout the Arab world. Muhammad Bouazizi's self-immolation prompted anti-government protests that toppled the regime in Tunisia and then Egypt. The demonstrations have spread across a swath of the Middle East and North Africa.

Here are the latest developments, including the roots of the unrest:



BAHRAIN
Bahrain has released about 25 high-profile political detainees, following an order by the king to free those he described as "prisoners of conscience" and halt proceedings against others, the Bahrain Center for Human Rights said Wednesday.
Among those released were the prominent blogger and human rights activist Ali Abdulemam, who runs bahrainonline.org; Abdul-Ghani Khanjar, a member of Committee for the Victims of Torture; and Mohammed Saeed, who works with the Bahrain Center for Human Rights.

Roots of unrest:
Protesters initially took to the streets of Manama last week to demand reform and the introduction of a constitutional monarchy. But some are now calling for the removal of the royal family, which has led the Persian Gulf state since the 18th century. Young members of the country's Shiite Muslim majority have staged protests in recent years to complain about discrimination, unemployment and corruption, issues they say the country's Sunni rulers have done little to address. The Bahrain Center for Human Rights said authorities launched a clampdown on dissent in late 2010. It accused the government of torturing some human rights activists.

CAMEROON
Opposition groups in Cameroon are planning "Egypt-like" protests Wednesday to call for the president's ouster after almost three decades in power. Organizers said the protests are planned in Douala and the capital, Yaounde.

Roots of unrest
President Paul Biya, who is running for re-election this year, has led the country for 28 years. "People yearn to see a change in government," said Kah Walla, a protest organizer. Cameroonians sought reforms long before the North Africa uprisings. In 2008, they took to the streets to demand lower food and fuel prices. The protests later grew to include Biya's plan to change the Constitution to lengthen his term.

YEMEN
Undeterred by the attack on their sit-in a day earlier, anti-government protesters gathered at Sanaa University again on Wednesday to demand that President Ali Abdullah Saleh step down.

Roots of unrest:
Protesters have called for the ouster of Saleh, who has ruled Yemen since 1978. The country has been wracked by a Shiite Muslim uprising, a U.S.-aided crackdown on al Qaeda operatives and a looming shortage of water. High unemployment fuels much of the anger among a growing young population steeped in poverty. The protesters also cite government corruption and a lack of political freedom. Saleh has promised not to run for president in the next round of elections.

EGYPT
An Interior Ministry compound in Egypt was burning Wednesday as smoke billowed into the sky over Cairo. Witnesses said the fire was started by protesters upset about labor issues and the blaze could have been ignited by Molotov cocktails.
There have been about 1,300 official complaints against former Egyptian ministers and government officials, state-run media reported Wednesday.
Interior Minister Mahmoud Wagdi said he ordered that all the complaints, many of them about government waste and corruption, be investigated, state-run EgyNews website reported.

Roots of unrest:
Complaints about police corruption and abuses were among the top grievances of demonstrators who forced Mubarak from office. Demonstrators were also angry about Mubarak's 30-year rule, a lack of free elections and economic issues such as high food prices, low wages and high unemployment.

LIBYA
All night long, residents in Libya's capital Tripoli heard sporadic gunshots, a resident told CNN Wednesday. When day broke, the main roads in the city had been "cleaned off as if nothing happened," she said.
British Airways and BMI canceled its flights to and from Tripoli on Wednesday.
Among those caught up in the violent unrest in Libya are asylum-seekers and refugees, the U.N. refugee agency said as it urged neighboring countries not to turn them away should they flee the upheaval.

Roots of unrest:
Protests in Libya began in January when demonstrators, fed up with delays, broke into a housing project the government was building and occupied it. Gadhafi's government, which has ruled since a 1969 coup, responded with a $24 billion fund for housing and development. A month later, more demonstrations were sparked when police detained relatives of those killed in an alleged 1996 massacre at the Abu Salim prison, according to Human Rights Watch. High unemployment has also fueled the protests.

Some key recent events related to unrest in the Middle East and Africa:

UNITED NATIONS
U.N. Secretary-General Ban Ki-moon has been in "continuous contact" with regional leaders in Northern Africa and the Middle East. Ban is concerned about the attacks during pro-reform demonstrations, the office said, adding: "This is the time for broad-based dialogue and for genuine social and political reform."
Ban had an "extensive discussion" with Libyan leader Moammar Gadhafi on Monday, the United Nations said. Ban "expressed deep concern at the escalating scale of violence and emphasized that it must stop immediately," according to the statement.

ALGERIA
Protesters have demanded government reform, prompting authorities to lift a state of emergency imposed in 1992. The rule was used to clamp down on Islamist groups, but critics say the insurgency has long since diminished and the law exists only to muzzle government critics.
Algerian President Abdelaziz Bouteflika announced this month that he would soon lift the emergency declaration, a move analysts said was aimed at getting ahead of a protest movement that has grown since January.

Roots of unrest:
Protests began in January over escalating food prices, high unemployment and housing issues. They started in Algiers, but spread to other cities as more people joined and demonstrators toppled regimes in Tunisia and later Egypt. Bouteflika announced that he would lift the state of emergency law in what analysts called an attempt to head off a similar revolt.

DJIBOUTI
Thousands of people have marched in protest through Djibouti. On Friday, riot police charged the crowd after the call to evening prayers, shooting canisters of tear gas at the demonstrators, according to Aly Verjee, director of the international Election Observation Mission to Djibouti, who witnessed the event.
Djibouti is home to Camp Lemonnier, the only U.S. military base on the African continent.

Roots of unrest:
Protesters have called for President Ismail Omar Guelleh -- whose family has ruled the country since its independence from France in 1977 -- to step down ahead of elections scheduled in April. Guelleh has held the post since 1999 and is seeking a third term. Economic stagnation is also a source of anger among the people.

IRAN
Protesters have been met with force in major Iranian cities since February 14. In Tehran, thousands of security officers patrolled Revolution Square, at times striking at throngs of protesters with batons and rushing others on motorcycles. Opposition websites reported that security forces opened fire on protesters in Hafteh Tir Square, killing one person. Several were reported injured and detained. In Isfahan, protesters were met with batons and pepper spray in one square, while another peaceful march took place elsewhere under the watch of security agents.

Roots of unrest:
Opposition to the ruling clerics has simmered since the 2009 election, when hundreds of thousands of people filled Tehran streets to denounce the re-election of President Mahmoud Ahmadinejad as fraudulent.

IRAQ
Demonstrators in Iraq have clashed with Kurdish security forces in Sulaimaniya in northern Iraq. Most of the demonstrators oppose Kurdistan regional president Massoud Barzani and the ruling Kurdistan Democratic Party.

Roots of unrest:
Demonstrations in Iraq have usually not targeted the national government. Instead, the protesters are angry over corruption, the quality of basic services, a crumbling infrastructure and high unemployment, particularly on a local level. They want an end to frequent power outages and food shortages.

JORDAN
Protesters in Jordan have called for reforms and for abolishing the peace treaty between Jordan and Israel. On Friday, about 200 people clashed with pro-government demonstrators in Amman. Several people were reported injured. Anti-government protesters who participated in Friday's demonstration included leftists and independent activists demanding political and economic reforms.

Roots of unrest:
Jordan's economy has been hit hard by the global economic downturn and rising commodity prices, and youth unemployment is high, as it is in Egypt. Officials close to the palace have told CNN that King Abdullah II is trying to turn a regional upheaval into an opportunity for reform. He swore in a new government following anti-government protests. The new government has a mandate for political reform and is headed by a former general, with opposition and media figures among its ranks.

KUWAIT
Protesters in Kuwait have clashed with authorities on at least two occasions. Hundreds of protesters are demanding greater rights for longtime residents who are not citizens of the country. They also demanded the release of people arrested in demonstrations. Saturday, the protesters attacked the security forces, who managed to disperse the people and make arrests. The forces used tear gas on the demonstration involving between 200 and 400 protesters.

Roots of unrest:
Protesters are seeking greater rights for longtime residents who are not Kuwaiti citizens, an issue the country has been grappling with for decades. According to the CIA World Factbook, Kuwait has a population of 2.7 million, with 1.3 million resident registered as "non-nationals."

SUDAN
Sudanese President Omar al-Bashir has decided not to run for another term in 2015, a senior member of Sudan's ruling National Congress Party announced Monday. Al-Bashir has ruled since a military coup in 1989. He won another five-year term in a 2010 vote opposition parties boycotted over complaints of fraud. He also faces an arrest warrant from the International Criminal Court on charges of genocide, war crimes and crimes against humanity in the region of Darfur.
Demonstrators have clashed with authorities on recent occasions in Sudan. Human Rights Watch has said that "authorities used excessive force during largely peaceful protests on January 30 and 31 in Khartoum and other northern cities." Witnesses said several people were arrested, including 20 who remain missing.

Roots of unrest:
Demonstrators seek an end to NCP rule and government-imposed price increases, according to Human Rights Watch. It accuses the government of being heavy-handed in its response to demonstrations, and using pipes, sticks and tear gas to disperse protesters.

SYRIA
As protests heated up around the region, the Syrian government pulled back from a plan to withdraw some subsidies that keep the cost of living down in the country. President Bashar al-Assad also gave a rare interview to Western media, telling The Wall Street Journal last month that he planned reforms that would allow local elections and included a new media law and more power for private organizations. A planned "Day of Rage" that was being organized on Facebook against the al-Assad government failed to materialize, The New York Times reported.

Roots of unrest:
Opponents of the al-Assad government allege massive human rights abuses, and an emergency law has been in effect since 1963.

MOROCCO
Protesters have taken to the streets in cities across Morocco to call for political reform. Labor unions, youth organizations and human rights groups demonstrated in at least six cities on Sunday. Police stayed away from the demonstrations, most of which were peaceful, Human Rights Watch reported.

Roots of unrest:
Protesters in Morocco are calling for political reform. Government officials say such protests are not unusual and that the protesters' demands are on the agenda of most political parties.

TUNISIA
An uprising in Tunisia prompted autocratic President Zine El Abidine Ben Ali to leave the country on January 14 after weeks of demonstrations. Those demonstrations sparked protests around North Africa and the Middle East.

Roots of unrest:
The revolt was triggered when an unemployed college graduate set himself ablaze after police confiscated his fruit cart, cutting off his source of income. Protesters complained about high unemployment, corruption, rising prices and political repression.

PALESTINIAN TERRITORIES
Hundreds of Palestinians rallied for unity in Ramallah Thursday, calling on Hamas, Fatah and other Palestinian political factions to heal their rifts amid arguments over elections scheduled for September in the Palestinian territories. "Division generates corruption" was one of several slogans on banners held up by the demonstrators, who flooded the streets after calls went out on social-networking sites as well as schools and university campuses.

Roots of unrest:
The Palestinian territories have not seen the kind of demonstrations as in many Arab countries, but the Fatah leaders of the Palestinian Authority have been under criticism since Al-Jazeera published secret papers claiming to reveal that Palestinian officials were prepared to make wide-ranging concessions in negotiations with Israel. Negotiations toward a resolution of the decades-long Israeli-Palestinian conflict have since collapsed. Palestinian protests, largely in support of Egypt and Tunisia, were generally small and poorly attended, and in some cases the Hamas rulers of Gaza and the Palestinian Authority rulers of the West Bank actively tried to stifle protests. The split between Hamas and Fatah hampers internal change in the territories, although calls for political change are growing louder among Palestinians. Large-scale protests have failed to materialize as many Palestinians believe their problem remains Israel.

So with the whole world in upheaval and people are tired of corrupt government and politicians again I ask will the United States be next and what will our government and authorities do to the people if this were to happen in America? Feel free to leave comments and post. I would like to hear all opinions on this.

Friday, February 11, 2011

Dream Rangers



AMEN....PACK LIGHT....RIDE HARD...DIE FREE....

Thursday, February 10, 2011

U.S. Is Bankrupt and We Don’t Even Know It:

Read this and its good to share no matter what your political affiliation is.

Let’s get real. The U.S. is bankrupt. Neither spending more nor taxing less will help the country pay its bills.

What it can and must do is radically simplify its tax, health-care, retirement and financial systems, each of which is a complete mess. But this is the good news. It means they can each be redesigned to achieve their legitimate purposes at much lower cost and, in the process, revitalize the economy.

Last month, the International Monetary Fund released its annual review of U.S. economic policy. Its summary contained these bland words about U.S. fiscal policy: “Directors welcomed the authorities’ commitment to fiscal stabilization, but noted that a larger than budgeted adjustment would be required to stabilize debt-to-GDP.”

But delve deeper, and you will find that the IMF has effectively pronounced the U.S. bankrupt. Section 6 of the July 2010 Selected Issues Paper says: “The U.S. fiscal gap associated with today’s federal fiscal policy is huge for plausible discount rates.” It adds that “closing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14 percent of U.S. GDP.”

The fiscal gap is the value today (the present value) of the difference between projected spending (including servicing official debt) and projected revenue in all future years.
Double Our Taxes

To put 14 percent of gross domestic product in perspective, current federal revenue totals 14.9 percent of GDP. So the IMF is saying that closing the U.S. fiscal gap, from the revenue side, requires, roughly speaking, an immediate and permanent doubling of our personal-income, corporate and federal taxes as well as the payroll levy set down in the Federal Insurance Contribution Act.

Such a tax hike would leave the U.S. running a surplus equal to 5 percent of GDP this year, rather than a 9 percent deficit. So the IMF is really saying the U.S. needs to run a huge surplus now and for many years to come to pay for the spending that is scheduled. It’s also saying the longer the country waits to make tough fiscal adjustments, the more painful they will be.

Is the IMF bonkers?

No. It has done its homework. So has the Congressional Budget Office whose Long-Term Budget Outlook, released in June, shows an even larger problem.

‘Unofficial’ Liabilities

Based on the CBO’s data, I calculate a fiscal gap of $202 trillion, which is more than 15 times the official debt. This gargantuan discrepancy between our “official” debt and our actual net indebtedness isn’t surprising. It reflects what economists call the labeling problem. Congress has been very careful over the years to label most of its liabilities “unofficial” to keep them off the books and far in the future.

For example, our Social Security FICA contributions are called taxes and our future Social Security benefits are called transfer payments. The government could equally well have labeled our contributions “loans” and called our future benefits “repayment of these loans less an old age tax,” with the old age tax making up for any difference between the benefits promised and principal plus interest on the contributions.

The fiscal gap isn’t affected by fiscal labeling. It’s the only theoretically correct measure of our long-run fiscal condition because it considers all spending, no matter how labeled, and incorporates long-term and short-term policy.

$4 Trillion Bill

How can the fiscal gap be so enormous?

Simple. We have 78 million baby boomers who, when fully retired, will collect benefits from Social Security, Medicare, and Medicaid that, on average, exceed per-capita GDP. The annual costs of these entitlements will total about $4 trillion in today’s dollars. Yes, our economy will be bigger in 20 years, but not big enough to handle this size load year after year.

This is what happens when you run a massive Ponzi scheme for six decades straight, taking ever larger resources from the young and giving them to the old while promising the young their eventual turn at passing the generational buck.

Herb Stein, chairman of the Council of Economic Advisers under U.S. President Richard Nixon, coined an oft-repeated phrase: “Something that can’t go on, will stop.” True enough. Uncle Sam’s Ponzi scheme will stop. But it will stop too late.

And it will stop in a very nasty manner. The first possibility is massive benefit cuts visited on the baby boomers in retirement. The second is astronomical tax increases that leave the young with little incentive to work and save. And the third is the government simply printing vast quantities of money to cover its bills.

Worse Than Greece

Most likely we will see a combination of all three responses with dramatic increases in poverty, tax, interest rates and consumer prices. This is an awful, downhill road to follow, but it’s the one we are on. And bond traders will kick us miles down our road once they wake up and realize the U.S. is in worse fiscal shape than Greece.

Some doctrinaire Keynesian economists would say any stimulus over the next few years won’t affect our ability to deal with deficits in the long run.

This is wrong as a simple matter of arithmetic. The fiscal gap is the government’s credit-card bill and each year’s 14 percent of GDP is the interest on that bill. If it doesn’t pay this year’s interest, it will be added to the balance.

Demand-siders say forgoing this year’s 14 percent fiscal tightening, and spending even more, will pay for itself, in present value, by expanding the economy and tax revenue.

My reaction? Get real, or go hang out with equally deluded supply-siders. Our country is broke and can no longer afford no- pain, all-gain “solutions.”

(Laurence J. Kotlikoff is a professor of economics at Boston University and author of “Jimmy Stewart Is Dead: Ending the World’s Ongoing Financial Plague with Limited Purpose Banking.” The opinions expressed are his own.)

To contact the writer of this column: Laurence Kotlikoff at kotlikoff@bu.edu