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Posted by M. C. on January 4, 2020
Posted in Uncategorized | Tagged: educational industrial complex | Leave a Comment »
Posted by M. C. on January 4, 2020
https://www.azquotes.com/author/1723-James_Bovard
As long as enough people can be frightened, then all people can be ruled. That is how it works in a democratic system and mass fear becomes the ticket to destroy rights across the board.
Democracy is not freedom. Democracy is two wolves and a lamb voting on what to eat for lunch.
America needs fewer laws, not more prisons.
Part of the reason that the government’s fear mongering is succeeding is because so many people are so ignorant, that it is easier for government to frighten people in submission.
It is unfortunate that Americans are no longer aware of what the constitution says and what their rights are. Because of that, we are often very passive about what happens when the government violates those rights.
It is one of the great tragedies of the US, that most learn most of what they know about the government from the government.
Today’s citizen is obliged to find his freedom only in the narrow ruts pre-approved by his bureaucratic overlords. “Risk-free liberty” is the ideal of the Welfare State: citizens are permitted only liberties which have been declawed, defanged, neutered, certified and wrapped in benevolent restrictions.
The only things government can do are regulate and redistribute, prohibit and penalize, confiscate and command. Are these the things that liberty is made of? Somebody else’s money and an endless list of Thou Shalt Nots?
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Posted in Uncategorized | Tagged: Democracy, fear mongering, Government, James Bovard | Leave a Comment »
Posted by M. C. on January 4, 2020
Politicians in a growing number of local governments are claiming to have created “2nd Amendment Sanctuaries.” But, so far they’ve missed the mark by a wide margin.
Contrary to the rhetoric being spread in support of these efforts, virtually none of these jurisdictions have passed laws equivalent to even the most modest immigration “sanctuary city” policy. In fact, most of them aren’t passing laws at all.
While there is no concrete, legal definition of a sanctuary city, when it comes to immigration, the generally-accepted view is that the local government refuses to participate in the enforcement of a narrow to wide range of federal immigration laws.
San Francisco might be the most prominent of these. The “City and County of Refuge” Ordinance, also known as the Sanctuary Ordinance, was first passed there in 1989 and was amended as recently as 2013.
According to the city government website, it “generally prohibits City employees from using City funds or resources to assist Immigration and Customs Enforcement (ICE) in the enforcement of federal immigration law unless such assistance is required by federal or state law.”
On the narrower end of the spectrum, a number of counties in Iowa have found themselves on lists of sanctuaries because county sheriffs decided that without first getting a warrant or court order, they would not honor detainer requests from ICE and hold individuals suspected of being in the country illegally.
In reviewing recently-passed “2nd Amendment Sanctuary” measures in Texas, Illinois, Oregon, Florida, Arizona and elsewhere, none of them prohibit any local government employees from using funds or resources to assist in the enforcement of federal or even state gun laws or regulations. And other than a few outliers, almost none of them have passed any laws at all, despite making public claims to have created a “sanctuary” for gun owners.
In Hood County, Texas, for example, Sheriff Roger Deeds has been outspoken in recent months about his desire for a sanctuary there, and the Commissioners Court obliged by unanimously passing a resolution sponsored by Commissioner James Deaver.
It specifically declares Hood to be a “Second Amendment Sanctuary County,” and states that it will not “appropriate government funds, resources, employees, agencies, contractors, building, detention centers or offices for the purpose of enforcing a law that unconstitutionally infringes on the right of people to keep and bear arms.”
The problem with this effort, and for those claiming to have created a sanctuary for gun owners, is the fact that Hood County passed a resolution — not an ordinance.
According to the Texas Municipal Courts Education Center (TMCEC), local governing bodies make law by passing an ordinance. A resolution “does not have the force of law” and is used as “an expression of an opinion of the legislative body.”
Despite Hood County’s claim to be a “Second Amendment Sanctuary County,” its resolution doesn’t stop the enforcement of any gun measure. It is merely the opinion of those who voted to pass it — and nothing more.
This problem isn’t exclusive to Hood County.
At the time of this writing, at least a dozen other Texas counties have also claimed “Second Amendment Sanctuary” status. All of them have passed non-binding resolutions that don’t prohibit the enforcement of anything.
The same has happened in dozens of counties in Illinois, along with Lake County, Florida, Mohave County, Arizona, and elsewhere.
This doesn’t mean that resolutions don’t have a place in a strategy to defend the right to keep and bear arms. Thomas Jefferson famously drafted resolutions in response to the Alien and Sedition Acts, and the Kentucky legislature passed them in November, 1798. But supporters there didn’t claim they nullified the hated federal acts, even though they called on all states to do just that.
In Oregon, where voters last November passed eight county-level “Second Amendment Preservation Ordinances” rather than mere resolutions, the laws only prohibit the use of local resources for the enforcement of gun laws or regulations if it’s first determined that they are unconstitutional.
In other words, enforcement assistance continues until a law or regulation is struck down.
That approach is the exact opposite of what’s happening in San Francisco and other immigration sanctuaries around the country.
While those cities have drawn a growing ire from many conservatives and republicans, it’s almost certain these self-styled Second Amendment Sanctuaries won’t get the same treatment from their ideological opponents unless they dramatically change their strategy and pass laws that actually do something.
Originally published at Mises.org and reposted here under a Creative Commons 4.0 License
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Posted in Uncategorized | Tagged: City and County of Refuge, sanctuary city, Sanctuary Ordinance, Second Amendment Sanctuaries | Leave a Comment »
Posted by M. C. on January 4, 2020
The political class, including the mainstream media, would prefer you pay attention to the fluff, not to the things that really matter. Perhaps instead of obsessing over impeachment or the latest debate over a Trump tweet, you would be better served to pay attention to what they don’t want you to pay attention to.
https://tenthamendmentcenter.com/2019/12/20/while-you-were-obsessing-over-impeachment/
…While you argued over the gory details of impeachment with your friends on Facebook, Congress passed the 2020 National Defense Authorization Act. The nearly 3,500-page bill authorizes $738 billion in defense spending in Fiscal Year 2020. It creates a “Space Force,” so the U.S. can expand its empire into the cosmos. And Congress rejected a provision that would have made it just slightly harder for the president to unilaterally send American troops into combat. In other words, Congress agreed that it would not bother to do its job and declare war before sending the U.S. military to conduct offensive combat operations as required by the Constitution. It will continue to let the president make that call on his own. You know – the president the House just impeached.
Even worse, the current iteration of the NDAA extended provisions written into the 2012 National Defense Authorization Act that effectively authorize government kidnapping. The vaguely worded sections purport to authorize the arrest and “indefinite detention” of anybody the president decides might be associated with “terrorism” and subject them to the law of war. In effect, the government can deem you a terrorist and lock you away without due process. Government kidnapping may sound like hyperbole, but that’s exactly what the NDAA authorizes in effect.
Speaking of war, while all eyes were glued to the three-ring circus in D.C., the Washington Post released documents revealing that the U.S. government has been lying to us about the war in Afghanistan for decades.
“A confidential trove of government documents obtained by The Washington Post reveals that senior U.S. officials failed to tell the truth about the war in Afghanistan throughout the 18-year campaign, making rosy pronouncements they knew to be false and hiding unmistakable evidence the war had become unwinnable.”
As one three-star general put it, “What are we trying to do here? We didn’t have the foggiest notion of what we were undertaking. If the American people knew the magnitude of this dysfunction .?.?. 2,400 lives lost.”
This seems, maybe, just a tiny bit, significant. But the news barely saw the light of day. It was completely buried under an avalanche of impeachment reporting…
So, let’s review. While America was mesmerized by the pro-wrestling event on Capitol Hill, Congress agreed to maintain the government’s “authority” to kidnap you, to keep spying on you without a warrant, to continue unconstitutional wars, and to spend you deeper into debt.
Political theater makes for splashy headlines and heated debates, but it really has very little impact on your life. The political class, including the mainstream media, would prefer you pay attention to the fluff, not to the things that really matter. Perhaps instead of obsessing over impeachment or the latest debate over a Trump tweet, you would be better served to pay attention to what they don’t want you to pay attention to.
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Posted in Uncategorized | Tagged: Afghanistan, Government Spending, impeachment, indefinite detention, NDAA, patriot act, Space Force | 1 Comment »
Posted by M. C. on January 4, 2020
No – Brennan apparently wasn’t a party member, Brennan just supported a communist party presidential candidate.
http://theduran.com/the-untold-truth-about-obamas-former-cia-director-john-brennan/
Let’s get something clear from the start. In 1976, in his 20s, John Brennan was a card carrying communist who supported the then Soviet Union, at the height some might say of the Cold War, so much so he voted and assisted Gus Hall, the communist candidate for President against a devout Christian, Jimmy Carter who ultimately won the Presidency.
Yet under four years later, just after the then Soviet Union invaded, just weeks before, Afghanistan and months after the tumultuous Iranian revolution of 1979, which at the time many thought the Soviet Union had a hand in, Brennan was accepted into the CIA as a junior analyst.
At that time, John Brennan should have never got into the CIA, or any Western Intelligence agency given his communist background.
Think on that carefully as you continue to read this.
Also reflect on the fact that Brennan, later in his CIA career, was surprisingly elevated from junior analyst to the prestigious position of Station Chief in Saudi Arabia where he spent a few years.
Its said he was appointed purely for ‘political’ reasons, alleged to have been at the direct request of Bill Clinton and other Democrats not because of a recommendation or merit from within the Agency.
Its further said that the Saudis liked Brennan because he became very quickly ‘their man’ so to speak. Some reports, unsubstantiated, even allege Brennan became a Muslim while there to ingratiate himself with the Saudis.
Important to read is an NBC news article entitled ‘Former Spooks Criticize CIA Director John Brennan for Spying Comments’ by Ken Dilanian dated March 2nd, 2016.
The article contains many revealing facts and evidence, while giving a flavour, of the feelings of many in the CIA who felt that Brennan was totally unsuitable and unqualified to be Director of the Central Intelligence Agency.
(This is the link to the above referenced article: https://www.nbcnews.com/news/ us-news/brennan-joking-when- he-says-cia-spies-doesn-t- steal-n529426. )
A final controversy is the little known fact of Brennan’s near four year departure from the CIA into the commercial world, having been ‘left out in the cold’ from the CIA, from November 2005 to January 2009 when he was CEO of a private company called ‘The Analysis Corporation’.
So why was he then reinstated into the CIA, to the surprise of CIA’s senior management, by newly elected President Obama, to head the CIA? No answer is available as to why he left the CIA in 2005.
(An important link that gives background to his experience in the commercial world can be read here: https://www.thedailybeast.com/ cia-slammed-brennans- disingenuous-contract-bid- wikileaks-show)
Lastly let’s not forget Brennan’s many failures as CIA head in recent years, one most notable is the Benghazi debacle and the death of a US Ambassador and others there. Something else to ponder.
Back to the present an the issue of security clearances.
In early August, on the well known American TV Rachel Maddow Show, Brennan back tracked on his Trump traitor claim by saying “I didn’t mean he (Trump) committed treason. I meant what he has done is nothing short of treasonous.” Rachel Maddow responded correctly “If we diagram the sentence, ‘nothing short of treason’ means it’s treasonous?”
A simple question follows. Since he is no longer in the CIA, why does he need a security clearance other than to commercially exploit it?
Tucker Carlson explains succinctly here:
Last month what can be described as 200+ ‘friends of Brennan’, former CIA officials of varying rank, responded against the removal of former CIA Director Brennan’s security clearances, in support of him.
These men and women too most likely will have their clearances revoked.
And why not?
Since the only purpose they retain it is to make money as civilians?
A potentially more serious issue than ‘the Brennan controversies’ is that the US intelligence community has around 5 million people with security clearances as a whole includes approximately 1.4m people holding top secret clearances. It is patently a ridiculously high number and makes a mockery of the word secret.
Former CIA veteran Sam Faddis is one of the few people brave enough and with the integrity required, that has stood up and told some of the real truths about Brennan in an ‘Open Letter’, yet this letter’s contents have hardly at all been reported in the media.
Generally by nature, CIA Officers sense of service and honour to their Country, their professionalism and humility, and disdain for publicity has dissuaded most of them to enter the current very public Brennan controversy; but for how much longer?
As stated earlier, former CIA professional Sam Faddis explains what’s wrong with Brennan in his revealing letter, abbreviated for space below. A link to the complete letter is: http://thepoliticsforums.com/ threads/107849-Scathing-Open- Letter-to-Mr-Brennan-by-Retired-CIA-Case-Officer:
Dear Mr. Brennan,
I implore you to cease and desist from continuing to attempt to portray yourself in the public media as some sort of impartial critic concerned only with the fate of the republic. I beg you to stop attempting to portray yourself as some sort of wise, all-knowing intelligence professional with deep knowledge of national security issues and no political inclinations whatsoever.
None of this is true.
You were never a spy. You were never a case officer. You never ran operations or recruited sources or worked the streets abroad. You have no idea whatsoever of the true nature of the business of human intelligence. You have never been in harm’s way. You have never heard a shot fired in anger.
You were for a short while an intelligence analyst. In that capacity, it was your job to produce finished intelligence based on information provided to you by others. The work of intelligence analysts is important, however in truth you never truly mastered this trade either.
In your capacity as an analyst for the Central Intelligence Agency, while still a junior officer, you were designated to brief the President of the United States who was at that time Bill Clinton. As the presidential briefer, it was your job to read to the president each morning finished intelligence written by others based on intelligence collected by yet other individuals. Period.
While serving as presidential briefer you established a personal relationship with then President Bill Clinton. End of story.
Everything that has transpired in your professional career since has been based on your personal relationship with the former president, his wife Hillary and their key associates. Your connection to President Obama was, in fact, based on you having established yourself by the time he came to office as a reliable, highly political Democratic Party functionary.
All of your commentary in the public sphere is on behalf of your political patrons. It is no more impartial analysis then would be the comments of a paid press spokesman or attorney. You are speaking each and every time directly on behalf of political forces hostile to this president. You are, in fact, currently on the payroll of both NBC and MSNBC, two of the networks most vocally opposed to President Trump and his agenda.
There is no impartiality in your comments. Your assessments are not based on some sober judgment of what is best for this nation. They are based exclusively on what you believe to be in the best interests of the politicians with whom you long since allied yourself.
It should be noted that not only are you most decidedly not apolitical but that you have been associated during your career with some of the greatest foreign policy disasters in recent American history.
Ever since this President was elected, there has been a concerted effort to delegitimize him and destabilize him led by you. This has been an unprecedented; to undermine the stability of the republic and the office of the Presidency, for solely partisan political reasons. You and your patrons have been complicit in this effort and at its very heart.
You abandoned any hope of being a true intelligence professional decades ago and became a political hack. Say so.
Sam Faddis
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Posted in Uncategorized | Tagged: Bill Clinton, CIA Director, John Brennan, Rachel Maddow, Sam Faddis | Leave a Comment »
Posted by M. C. on January 4, 2020
The US has admitted to assassinating Iran’s most beloved military leader, General Qassem Soleimani, in a drone strike which seems very likely to ignite a full-scale war. Six others are also reported killed, including Iraqi militia commander Abu Mahdi al-Muhandis.
According to the Pentagon, Trump personally ordered the assassination. I’ll keep following this hugely important story and will probably be writing a lot about it as it unfolds. I encourage everyone who values peace and humanity to follow it as well.
“Spoke to a very knowledgeable person about what Iran’s response to Soleimani’s assassination might be,” The Quincy Institute’s Trita Parsi tweeted regarding this developing story. “This would be the equivalent of Iran assassinating Petreus or Mattis, I argued. No, he responded, this is much bigger than that.”
Pentagon out with a statement on the airstrike.
“This strike was aimed at deterring future Iranian attack plans. The United States will continue to take all necessary action to protect our people and our interests wherever they are around the world.” pic.twitter.com/W1L8ymqScd— Grace Segers (@Grace_Segers) January 3, 2020
“Most Americans won’t understand the gravity of this,” tweeted journalist Rania Khalek. “Qasem Soleimani is head of the Iranian IRGC’s elite Quds Force, which conducts operations outside of Iran in both Iraq and Syria. He was credited with helping turn the tide in both countries against Al-Qaeda and ISIS.”
“This is very serious,” Khalek added. “The US essentially declared war on Iran by assassinating its most revered military figure in Iraq. And by also killing the head of the PMF, the US created more enemies in Iraq. There will be regional retaliation. It’s unlikely it can be prevented.”
“If true, It is not an understatement to say this could change the entire Middle East,” tweeted Rising‘s Saagar Enjeti.
“There’s going to be that war now that people have been pushing for since tanking the Iran Deal,” tweeted The Intercept‘s Murtaza Mohammad Hussain.
“If this is true, the US has effectively declared war on Iran, which has established militarily ties with Russia and China. It’s not hyperbole to say this could start WW3. Insane,” tweeted Grayzone‘s Dan Cohen, who also highlighted the important fact that “Iran, Russia and China held joint naval drills less than a week ago.”
“Iranian sources in Iran are warning that killing Gen. Qasem Sulaimani spells war,” tweeted Farnaz Fassihi of The New York Times. “‘Official reaction will begin with a strike,’ one says.”
A proportionate retaliatory strike would necessarily entail an attack on US military targets, or the military targets of US allies. If that happens, either the empire stands down or we’re looking at an all-out war of a size that is potentially almost limitless.
Iranian sources in Iran are warning that killing Gen. Qasem Sulaimani spells war.
“Official reaction will begin with a strike,” one says.#Iraq— Farnaz Fassihi (@farnazfassihi) January 3, 2020
Months after Donald Trump took office it was reported that the CIA had escalated covert operations in Iran, and the administration has been escalating tensions with that nation further and further ever since it announced its withdrawal from the Iran nuclear deal in 2018 on completely false pretenses. The withdrawal was followed by waves of debilitating, civilian-starving sanctions implemented with the goal of provoking civil unrest, a goal Secretary of State Mike Pompeo has openly admitted. From there we saw increased US military presence in the region, then the Iraqi-killing airstrikes earlier this week and the resulting tense angry standoff at the US embassy in Baghdad, and now here we are with Iran planning retaliation for an unforgivable assassination on its most senior and revered military official.
Many are understandably claiming that this geostrategically pivotal confrontation was precisely what Trump was installed to facilitate all along. The largest donor to any campaign in 2016 was oligarch Sheldon Adelson, who gave $25 million to the Trump campaign, and who in 2013 said that the US should drop a nuclear bomb on Iran. After Trump’s election win, Adelson gave another $5 million to his inauguration, the largest single presidential inaugural donation ever made. Newt Gingrich, another of the billionaire’s hired politicians, has said that Adelson’s “central value” is Israel.
Make no mistake, Iran is not Iraq or Libya. A full-scale war against Iran would be many times more deadly, costly and destabilizing than those interventions; the UK’s Admiral Lord West told The Daily Star Online last year that winning such a war would require no less than a million troops, or nearly the total number of active duty US military personnel in the entire world. Even if a direct war with Iran didn’t lead to a confrontation with China, Russia and the other unabsorbed allies, it would still be worse than Vietnam and Iraq combined in terms of death, destruction, expense, and regional destabilization.
Last year Lord Admiral West warned that the US would need no fewer than a million troops to win a war with Iran, almost the number of total active-duty US military personnel in the whole world. Even if this doesn’t become WW3, it would still be worse than Vietnam + Iraq. https://t.co/UKuNxwvfqH
— Caitlin Johnstone ⏳ (@caitoz) January 3, 2020
And now, as I sit as the mother of two teenagers watching what might be a third world war looming on the horizon, all I can think is about how infuriating it is that we’ve spent the last three years on Russia bullshit and sectarian political infighting instead of building an actual cohesive antiwar movement and pushing real opposition to Trump’s warmongering.
Let’s get it together, humans. We need big changes, and we need them yesterday.
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Thanks for reading! The best way to get around the internet censors and make sure you see the stuff I publish is to subscribe to the mailing list for my website, which will get you an email notification for everything I publish. My work is entirely reader-supported, so if you enjoyed this piece please consider sharing it around, liking me on Facebook, following my antics on Twitter, checking out my podcast on either Youtube, soundcloud, Apple podcasts or Spotify, following me on Steemit, throwing some money into my hat on Patreon or Paypal, purchasing some of my sweet merchandise, buying my new book Rogue Nation: Psychonautical Adventures With Caitlin Johnstone, or my previous book Woke: A Field Guide for Utopia Preppers. For more info on who I am, where I stand, and what I’m trying to do with this platform, click here. Everyone, racist platforms excluded, has my permission to republish or use any part of this work (or anything else I’ve written) in any way they like free of charge.
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Posted in Uncategorized | Tagged: Al Qaeda, CIA, full-scale war, Iran Deal, IRGC, ISIS, Qassem Soleimani, Quds Force, World War | Leave a Comment »
Posted by M. C. on January 4, 2020
Self Destruction: A dream come true for invaders of the West.
Greta Thunberg won’t have to worry about climate change destroying Sweden. Birth rates and foreign invaders have Sweden well on it’s way.
https://www.lewrockwell.com/2020/01/patrick-j-buchanan/our-real-existential-crisis-extinction/
If Western elites were asked to name the greatest crisis facing mankind, climate change would win in a walk.
Thus did Time magazine pass over every world leader to name a Swedish teenage climate activist, Greta Thunberg, its person of the year.
On New Year’s Day, the headline over yet another story in The Washington Post admonished us anew: “A Lost Decade for Climate Action: We Can’t Afford A Repeat, Scientists Warn.”
“By the final year of the decade,” said the Post, “the planet had surpassed its 2010 temperature record five times.
“Hurricanes devastated New Jersey and Puerto Rico, and floods damaged the Midwest and Bangladesh. Southern Africa was gripped by a deadly drought. Australia and the Amazon are ablaze.”
On it went, echoing the endless reports on the perils of climate change to the planet we all inhabit.
Yet, from the inaction of the carbon-emitting countries like India, China, Russia and the USA, the gravity with which Western elites view the crisis is not shared by the peoples for whom they profess to speak.
For many First World countries, there are more compelling concerns. High among them is population decline, and, if birth rates do not rise, the near-extinction of many Western peoples by this century’s end.
Consider. The number of births in Japan fell in 2019 to a level unseen since 1874, around 900,000. But there were 1.4 million deaths for a net loss of 512,000 Japanese. An even larger loss in Japan’s population is expected this year…
South Korea has an even lower birth rate, and its population is expected to start diminishing this year.
But it is Eastern Europe where the population crisis is most advanced.
At the end of the Cold War, Bulgaria had 9 million people. By 2017, that had fallen to 7.1 million…
By 2050, Ukraine and Poland are each projected to lose another 6 million people, and Hungary will lose 1.5 million.
Lithuania and Latvia have seen serious population losses since the end of the Cold War and are in the front rank of European nations losing people at the fastest rate.
U.N. demographers project Russia’s population may fall from 145 million today to 121 million by 2050. Such losses rival those that Russia suffered under Lenin, Stalin and World War II…
Since this writer published “The Death of the West,” nothing has happened to alter my conclusion as to where the West was destined:
“The Death of the West is not a prediction of what is going to happen. It is a depiction of what is happening now. First World nations are dying. They face a mortal crisis, not because of something happening in the Third World, but because of what is not happening at home and in the homes of the First World. Western fertility rates have been falling for decades. Outside of Muslim Albania, no European nation is producing enough babies to replace its population. … In a score of countries the old are already dying off faster than the young are being born. … There is no sign of a turnaround. Now the absolute numbers of Europeans have begun to fall.”
We are talking here about what historians, a century hence, will call the Lost Tribes of Europe. And if a people has ceased to replace itself, and the national family is dying out, it is difficult to generate alarm over the slow sinking of the Maldives into the sea, the melting of the polar ice caps, or the fact that Greenland is getting greener every year.
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It didn’t turn out so well for the guy on the right.
Posted in Uncategorized | Tagged: birth rates, Climate Change, Death of the West, Existential Crisis, Greta Thunberg, population decline, Western peoples | 1 Comment »
Posted by M. C. on January 4, 2020
The point is, inflation targeting is one of the greatest efforts at misdirection that a government agency has ever concocted. This gives them a license to constantly intervene and meddle in the financial markets—pointlessly fiddling with the whole price structure of debt and equity assets.
There’s about $1.5 trillion of excess reserves in the banking system.
So, they’re paying out to the banks upwards of $23 billion a year in order to keep excess funds on deposit at the Fed, rather than putting it to work in the macroeconomy.
How stupid is that?
International Man: Trump is calling for a weaker dollar and negative interest rates. What does this tell you about Trump’s understanding of economics?
David Stockman: It tells you that he has no understanding of economics at all!
I think Trump is not even a primitive when it comes to economic comprehension. His views are just plain stupid when it comes to exchange rates. He seems to think it’s some grand game of global golf, where the strongest player gets the lowest score.
What sense does it make tweeting as he did recently in attacking the Fed?
According to Trump, the US economy is so much better than the rest of the world’s economies, and therefore we should have the lowest interest rate as a result. It has nothing to do with economic logic or with principles related to sound money. I think he’s just thrashing about trying to create a warning that if things go badly, it’s the Fed’s fault.
The whole narrative on the economy is wrong…
Even John Maynard Keynes himself said that you ought to try to balance the budget and even generate a surplus at the top of the cycle.
We’re right in the middle of the worst kind of economic policy in my lifetime, anyway—going back to the 1960s.
Trump is completely clueless about how we got here, how he got here, and where we’re going…
International Man: The Fed recently said it could increase its tolerance for inflation before it considers raising interest rates. It would be a major policy shift. What’s really going on here?
David Stockman: I think what’s going on is that they’re looking for another excuse to capitulate to Wall Street next time it has a hissy fit because it believes the Fed owes them another shot of stimulus and more liquidity.
Let’s address the underlying issue now. The 2% inflation target is absurd to begin with. There is no historical or theoretical evidence to suggest that inflation at 2% is better for growth and prosperity than inflation at 1.5%, 1%, or even -1%.
This is just made up, just like the money they created that’s been snatched from thin air, adopted as official policy in January 2012.
It becomes a rolling excuse for running the printing press and accommodating both the politicians in Washington, D.C., who want low interest rates so that debts are cheap to finance and the gamblers on Wall Street who want low interest rates because they result in higher asset values and cheaper costs for carry trade speculators.
The idea that we haven’t had enough inflation as it’s measured by one indicator—the Personal Consumption Expenditure (PCE) deflator—is kind of crazy for two reasons.
First, there’s a lot of other inflation measures that say we easily achieved 2% inflation.
The 16% trimmed-mean CPI is a very handy tool. It has the same CPI data at the product code level as that in the regular CPI, but in order to smooth out the monthly figure, it takes out the lowest and highest 16% of individual prices.
It’s probably more accurate than CPI because it removes the outliers but puts them back in as soon as they reach the center of the distribution.
The trimmed-mean CPI has averaged 2% since January 2012. During the last 12 months, it’s reached 2.34%, way over the Fed’s 2% target.
There are lots of issues here…
International Man: There are increasing calls for central banks to combat climate change. The IMF, the European Central Bank, and several others have chimed in. What does this mean, and why are central bankers suddenly so keen on this topic?
David Stockman: This is beyond stupid. What could the central banks possibly do to help the global economies adjust to climate change? Climate change may or may not be happening, and if it is, it’s due to planetary forces that central banks have absolutely no power to impact or counteract…
International Man: If Rand Paul finally gets his audit of the Federal Reserve, what do you think they’ll find?
David Stockman: What he’s going to find is just more detail on the absurdities of what they’re doing already.
I think one that you would look into is this policy called Interest on Excess Reserves (IOER). They targeted that number at 1.55% right now. There’s about $1.5 trillion of excess reserves in the banking system.
So, they’re paying out to the banks upwards of $23 billion a year in order to keep excess funds on deposit at the Fed, rather than putting it to work in the macroeconomy.
How stupid is that?…
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Posted in Uncategorized | Tagged: audit the Fed, end the Fed, excess reserves, John Maynard Keynes, macroeconomy, negative interest, Rand Paul, weaker dollar | 1 Comment »
Posted by M. C. on January 4, 2020
The first thing we need to do is get rid of inflation targeting and try to become more competitive by allowing the market to automatically do it. If the Fed wasn’t in the way, we would have high interest rates and a deflating price system as the economy attempted to adjust to the massive new competition in China.
…What do you think of Trump’s trade policies and tariffs?
David Stockman: The trade policies are idiotic. They haven’t improved the trade deficit. And have caused other problems.
We got the numbers in now for 2018 and we had the largest trade deficit in history!…
International Man: If Trump was serious about making the US industry competitive, what could he do?
David Stockman: The best thing he could do is a housecleaning of the Fed.
The Fed’s policies are the number-one enemy of real sustainable growth, job creation, and the American economy.
First, the 2% target inflation is absurd.
We’re in a world where we’re competing with $5-an-hour labor in China and $15 or $18 in South Korea. We should be deflating our economy, not inflating it, because when we inflate a price level, wages go up with it, and we become just that much more uncompetitive in global trade either as an exporter or in competition with the imports coming in.
The American worker isn’t any better off because he got an extra 2% in his wage. He’s paying 2%—if not far more actually—at the grocery store, at the doctor’s office, for education costs, and for transportation.
The first thing we need to do is get rid of inflation targeting and try to become more competitive by allowing the market to automatically do it. If the Fed wasn’t in the way, we would have high interest rates and a deflating price system as the economy attempted to adjust to the massive new competition in China.
The second thing is to get the Fed out of the business of propping up the stock market in fear that if the stock market is allowed to correct, we’ll have a short run of recession—which is true.
Stock crashes lead to recession, owing to this crazy financial engineering that has become the total preoccupation of the corporate C-suites of America…
To summarize, if we started deflating, rather than inflating our economy, if we get the C-suites back into the business of running companies and investing for the long haul rather than financial engineering on Wall Street, it would eventually and slowly heal our competitive situation.
It would lead to more jobs, higher incomes, more sustainable prosperity for the American economy.
But that requires a massive change at the Fed—a housecleaning, of both the people and the models and policies that they use.
Be seeing you

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