One Last Look At The Real Economy Before It Implodes – Part 5

Submitted by Brandon Smith via Alt-Market.com, (click here for Part 1, Part 2, Part 3, and Part 4)

Since I began writing analysis for the liberty movement more than eight years ago, I have always said that we will know when the endgame of the globalists is upon us when the criminals come out into the light of day and admit to their crimes. At that moment, it will be because they no longer fear either the repercussions or their plans being obstructed.

As I plan to show in this installment of my series on the hidden fiscal collapse of America, the endgame has indeed arrived. At the very least, the international elites seem to think success is within their grasp, for they now openly expose their own criminality. But they do so in a way that attempts to divert blame or to rationalize their actions as being for the “greater good.”

In Part 4 of this series, I discussed the reality of the false East/West paradigm and the fact that the “conflict” between Eastern and Western interests is nothing more than Kabuki theater constructed by globalists and designed to mesmerize the masses. You see, the problem with most people is that they tend to let their innate sense of tribalism drive them to take sides in war without understanding the fundamental root of that war. In most cases, they believe one side must be “good” and one side must be “bad.” Globalists understand this weakness of human collectivism, and they exploit it as often as possible. They create conflicts from out of the void, conflicts in which BOTH sides are controlled. Then, they let the masses fumble like idiots trying to set the noose around the other guy’s neck.

The East/West paradigm is just another in a long line of false confrontations engineered by the elites, but it is one that is most dangerous to the liberty movement itself. In our rage over the destruction of freedom and prosperity within our own country, some of us have come to assume that the source of all that is unholy bubbles at the heart of U.S. corporate and government activity and that the East is in the midst of some kind of rebellion. This is simply nonsense.

Recently, a reader sent me a link that reminded me of comments made by Rep. Louis T. McFadden, chairman of the House Banking Committee, on May 4, 1933. In the wake of his battle against the Federal Reserve, he said:

“… the treacherous signing away of American rights at the 7-power conference at London in July 1931 … put the Federal Reserve System under the control of the Bank of International Settlements.”

Even in 1933, there were some people who could see that the Federal Reserve was just an errand boy, an economic hit man for a more powerful entity. Sadly, McFadden died in 1936 from coronary thrombosis before he could make any headway in his crusade. The truth he stamped into the public record, though, lives on; and it is a truth that many people just don’t want to hear. It is easier to quantify the threat of the Federal Reserve. It is easier to believe that the Fed either controls the entire game or (for the more sheep-minded citizenry) that the Fed is a harmless “quasi-governmental body.” Many of us in the movement want to believe it is the gateway to the seventh circle of hell because if the Fed dies, then we win. And the Fed appears to be killable, most notably in light of certain actions on the part of the East. Unfortunately, the problem is far more complex.

As McFadden exposed, the Fed is merely a tentacle, one of many slithering at the behest of a larger vampire squid. The Bank for International Settlements appears to be the eye of the leviathan. I have been happy to see that the BIS is gaining more and more attention from the alternative media as a primary threat to the stability of the world. Zero Hedge published a very interesting article on the BIS banking cabal recently, excerpted from a book by Adam LeBor and titled “Meet The Secretive Group That Runs The World.”

Of course, this is not the first exposé on the BIS. Even Harper’s published a surprisingly honest (though only half the story) piece on the bank, titled “Ruling The World Of Money,” back in 1983. In it, the magazine claims that “…the unabashed purpose of its (BIS) elite monthly meetings is to coordinate and, if possible, to control all monetary activities in the industrialized world.”

Any central bank that ends up on the membership roster of the BIS should be for all intents and purposes considered a pawn of the BIS. This includes the central banks of Eastern nations supposedly in opposition to Western power. The very beginning history of the BIS is stained with blood, since it financially played both sides of World War II and aided the funding of the Nazi apparatus. Keep in mind that Germany, Japan and the Allies were all members of the BIS from 1931 on and remained members through the war. Bankers have been pitting countries against each other for a very long time, and they have no loyalties to any particular nation.

The BIS had to fade into the background for a time after its partnership with fascists was made public after the war. So the elites formed yet another monstrosity, the International Monetary Fund, to take its place in the public eye. However, the BIS continues to this day to pull the strings of the world’s central banks and, by extension, the world’s governments.

The strategy of engineered conflict has not changed. I have written numerous articles on the undeniable collusion between Russia and the IMF, including the avid Russian support for the IMF’s new global reserve currency, the Special Drawing Rights. You can read those articles here, here and here.

Vladimir Putin and the Kremlin have continued their love affair with the IMF since 2009, when they called for the SDR to become the world reserve currency.

Last year, Putin reasserted the goal of the BRICS to become more involved (enveloped) in the IMF system:

“In the BRICS case we see a whole set of coinciding strategic interests. First of all, this is the common intention to reform the international monetary and financial system. In the present form it is unjust to the BRICS countries and to new economies in general. We should take a more active part in the IMF and the World Bank’s decision-making system. The international monetary system itself depends a lot on the US dollar, or, to be precise, on the monetary and financial policy of the US authorities. The BRICS countries want to change this.”

I also have been covering the Chinese shift away from the dollar and into the arms of the IMF’s currency basket for years.

The great lie today is that China and Russia are anti-New World Order. Yet as I discussed in my last article, China (and Russia) have consistently called for a global conversion into the SDR basket system, and they want this system to be run by the IMF. The IMF, in turn, has consistently called for the end of the dollar as the world reserve currency and has openly embraced institutions like the new Asian regional bank, the AIIB, which is dominated by China, despite the fact that many people wrongly believe that the AIIB is somehow “competition” to the IMF or World Bank.

This excerpt comes from the International Business Times:

World Bank managing director Mulyani Indrawati told Xinhua in an interview.

“We will definitely open for cooperation with AIIB [sic]. Even now, we are working very closely in the beginning and looking at the setting, principle and framework of this institution.”

Sand-nado – Beijing Battered By Blanket Of Red Dust

In yet another ripped from the movies-screen-esque event, Beijing was brought to a standstill today as a massive Interstellar-like sandstorm covered the Chinese capital in thick blanket of red dust, sparking social media discussions of the end of the world. As RT reports, The China Meteorological Administration issued a yellow sandstorm alert – the third-most serious danger level, which given the images below, makes us wonder just WTF it takes to get to a level 1 sandstorm…

Stunning!! In a city of 21 million people…

Putting The Real Story Of Energy & The Economy Together

Submitted by Gail Tverberg via Our Finite World blog,

What is the real story of energy and the economy? We hear two predominant energy stories. One is the story economists tell: The economy can grow forever; energy shortages will have no impact on the economy. We can simply substitute other forms of energy, or do without.

Another version of the energy and the economy story is the view of many who believe in the “Peak Oil” theory. According to this view, oil supply can decrease with only a minor impact on the economy. The economy will continue along as before, except with higher prices. These higher prices encourage the production of alternatives, such wind and solar. At this point, it is not just peak oilers who endorse this view, but many others as well.

In my view, the real story of energy and the economy is much less favorable than either of these views. It is a story of oil limits that will make themselves known as financial limits, quite possibly in the near term—perhaps in as little time as a few months or years. Our underlying problem is diminishing returns—it takes more and more effort (hours of workers’ time and quantities of resources), to produce essentially the same goods and services.

We don’t measure our investment results with respect to the quantity of end product produced (barrels of oil produced, liters of fresh water produced, kilos of copper produced, or number of workers provided with sufficient education to work in high tech industries), so we don’t realize that we are becoming increasingly inefficient at producing desired end products. See my post “How increased inefficiency explains falling oil

300 US Paratroopers Arrive In Ukraine After Russia Says Its Missiles Will Target NATO Member States

While the escalation of the second Cold War between Russia and the US over their proxy conflict in Ukraine has been relegated to the back pages due to the lack of any flash points in recent months, events in eastern Europe continue to build up to an increasingly unstable equilibrium. Just yesterday, Russia again accused the United States of “seeking political and military dominance and sought to put blame on the West for international security crises, including the conflict in east Ukraine.”

It didn’t stop there. According to the WSJ, Russia’s top general warned European countries planning to host installations for a U.S.-led missile-defense shield that Russian forces would be forced to target them.

“Nonnuclear powers where missile-defense installations are being installed have become the objects of priority response,” Gen. Valery Gerasimov said, referring to Poland and Romania.

It was unclear if Russia would use conventional weapons or tactical short-range nuclear missiles for deterrence purposes.

The comments came at a defense conference in Moscow where a series of high-level Russian leaders repeatedly warned of perceived threats that the U.S. and the North Atlantic Treaty Organization posed to modern Russia.

Russian Defense Minister Sergei Shoigu said, according to Reuters, that a drive by the United States and its allies to bring Kiev closer to the West was a threat to Moscow and had forced it to react.

“The United States and its allies have crossed all possible lines in their drive to bring Kiev into their orbit. That could not have failed to trigger our reaction,” he told an annual security conference in Moscow.

General Valery Gerasimov, chief of the General Staff of the Russian Armed Forces, reiterated Russia’s warning: “Considering themselves the winners of the Cold War, the United States decided to reshape the world to fit its needs.”

“Aiming at complete dominance, Washington stopped taking into account the interests of other countries and respect international law.

When asked about the annexation of Crimea and the ongoing conflict in Ukraine, Shoigu “blamed the violence on Kiev and sought to dismiss Western criticism that Russia was forcibly remaking European borders, pointing in turn to Western military involvement in Serbia, Iraq and Libya.”

Russian Foreign Minister Sergei Lavrov told the conference attended by envoys from China, Iran, Pakistan and some of Russia’s regional allies, that Kiev had to deliver on its obligations under peace agreements reached in Minsk to “safeguard unity of the Ukrainian state”.

The problem is that at this point it doesn’t matter who started what, where and how: just like the Intifada, or any other regional, thousand year-old conflict in Europe or any other part of the world, all that remains are the escalating steps, and how long until one of the two adversaries snaps and engages in an action from which there is no return.

Yet despite Russia’s very clear threat that its missiles are now armed at two more NATO countries, and numerous previous warnings that the official dispatch of US troops in Ukraine, besides the countless ones who are there on a mercenary basis, will lead to a flash point in the second Cold War, earlier today 300 hundred US paratroopers arrived in Ukraine – a non-NATO country – to “train its forces fighting pro-Russian rebels” according to the US army website.

As AFP notes, the move could “destabilize” the war-torn ex-Soviet country, which clearly is the intention. Because as we have warned on numerous occasions, the entire world is now headed into an event horizon in which the neo-cons have bet that only regional (or not so regional) war can be the economic stimulus that pushes the world out of its global depressed funk. Just like the first Great Depression.

According to AFP, the troops from the 173rd Airborne Brigade arrived on Tuesday and Wednesday in Yavoriv, western Ukraine, to spend six months training three battalions of Ukrainian troops, the army said in a statement.

Did WalMart Close A California Store To Punish Employees Who Protested Wages And Working Conditions?

On Wednesday, we asked why WalMart simultaneously closed multiple geographically distinct stores across the US for “plumbing issues.” We began by noting that the company — the largest retailer in the world — raised wages across the board just two months ago. Here’s an excerpt from the letter sent to employees by President and CEO Doug McMillon:

For our current associates, we’ll start by raising our entry wage to at least $9 an hour in April, and, by February of next year, all current associates will earn at least $10 an hour.

Japan’s “Over 65” Rise To Record 33 Million, More Than Double Number Of Children

With Abenomics seemingly a total failure (aside from managing to collapse the currency and living standards of the population – worst Misery Index in 33 years) the demographic crisis that Japan faces just got more crisis-er. As NHKWorld reports, Japan's population continues to fall (4th year in a row) but what is worse, there are now 33 million people over the age of 65 (a record 26%), more than double the number under the age of 14 (16.2 million). The ministry says the population will likely continue declining for some time as fewer babies are born and society ages.

As NHK World reports, Japan's government says the country's population continues to decrease and become grayer.

The internal affairs ministry estimates that the population stood at 127.1 million on October 1st last year. That's down 215,000 from the previous year, for a fourth straight year of decline.