Sunday, May 29, 2016

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http://www.zerohedge.com/news/2016-05-28/next-big-crash-us-economy-coming-heres-why

The Next Big Crash Of The U.S. Economy Is Coming, Here's Why

Investors better be prepared as the next crash of the U.S. economy is coming. This is not based on hype or speculation, rather due to the disintegration of the underlying fundamentals. Matter-a-fact, the fundamentals are so completely AWFUL, that the next market crash will make 2008 look quite tame indeed.

To get the skinny on the lousy fundamental data, let's first look at the Auto Industry. The next series of charts come from the article, More Warnings--Unsustainable Auto Sales & Stock PE Ratios:

Auto Loans

Ever since the supposed economic turnaround, the amount of outstanding auto loans has increased dramatically from less that $700 billion in 2010 to over $1 trillion in the fourth quarter of 2015. According to Wolf Richter, quoted in the article:

“Deep-subprime borrowers are high-risk. Typically they have credit scores below 550. To make it worth everyone’s while, they get stuffed into loans often with interest rates above 20%. To make payments even remotely possible at these rates, terms are often stretched to 84 months. Borrowers are typically upside down in their vehicle: the negative equity of their trade-in, along with title, taxes, and license fees, and a hefty dealer profit are rolled into the loan. When the lender repossesses the vehicle, losses add up in a hurry.

When I was younger, the longest automobile loan an individual could get was 48 months. However, you were considered to be a REAL LOSER if you had to finance an automobile that long. Now, 84 months is becoming the norm....LOL.

This is just one factor that shows just how weak the economy has become if Americans have to finance a car for seven years.

Here is another chart from the article linked above. It shows just how inflated the S&P 500 index has become:

SP500

According to Michael Lebowitz of 720 Global Research (quoted in the article):

Since October 1, 2011, the S&P 500 has risen 82% on the heels of a 0.75% decline in earnings. The price to earnings ratio over that time period has risen 83%, with price gains contributing 99% to the increase. Prices have risen substantially, while earnings have actually fallen. The chart below highlights the growing gap between earnings and the S&P 500.”

As we can see from the chart, the S &P 500 and earnings have been surviving on HOT AIR, especially since the latter part of 2014. When QE (money printing) and zero interest rates no longer provided enough bounce in the markets, the Fed, Central Banks and the Plunge Protection Team stepped in a BIG WAY to keep the markets from crashing.

So, not only do we have a highly over-leveraged automobile financed industry, the broader stock market valuations are in bubble territory. Unfortunately, this is only part of the story. If we look at the disintegrating U.S. Energy Industry, the situation is even more dire.

The Coming Collapse Of The U.S. Energy Industry

Today I did an interview with Money Metals Exchange. I will be putting out the interview when it's published. However, I discussed this energy subject matter during the interview. When I first started the interview, I said the precious metals community was guilty of propagating hype and short-term surging price moves that never came true. Thus, we have frustrated a lot of precious metals investors because the COLLAPSE of the Dollar, DEFAULT of the COMEX or much HIGHER gold and silver prices have not yet occurred.

So, am I guilty myself by putting out a new a headline that reads, "The Coming Collapse of the U.S. Energy Industry?" No.... here's why.

The situation in the U.S. Energy Industry is so AWFUL, I wouldn't be surprised to see half of the industry go bankrupt over the next few years. Of course, the U.S. Government could step in and either bail out or nationalize the energy industry, but this wouldn't stop the impending collapse.

Let's take a look at this next chart. The U.S. Energy Industry has added so much debt that it took nearly half of all its operating profits to just pay the interest on its debt in 2015:

Energy Sector Debt

While this was bad, it was even worse in the first quarter of 2016. According to the article, Why Oil & Gas Companies Are Barely Scraping By, the U.S. Energy Sector paid 86% of its total profits just to service the interest on its debt. Can you imagine that?

This chart from the article shows the huge change of interest payments on debt of the percentage of operating income in the U.S. Energy Sector:

Yahoo Finance Energy Debt

Since 2000, the U.S. Energy Sector was paying (on average) between 10-15% of its operating income to service its debt. However, that changed significantly in 2014 as the price of oil plunged. The reason this percentage jumped over 20% in 1998 was due to the price of oil falling below $15 compared to $22 in 1996.

So, why is the U.S. Energy Sector interest on the debt so much worse now with the price of oil more than double the 1998 price?? Again, the average annual price of oil in 1998 was $15 compared to $33 in Q1 2016. Why did the U.S. Oil and Gas Industry have to pay 86% of its operating income to service its debt during the first quarter of 2016 on the back of a $33 oil compared to 25% on $15 oil in 1998?

BECAUSE.... The U.S. Oil & Gas Industry has gone into massive debt to bring on very expensive energy supplies.

Here is one more chart from the energy article linked above:

Energy Debt Maturity

This chart shows the U.S. Energy Sector maturing debt outstanding for each year. According to the article:

While $5.1 billion of U.S. energy debt matures this year, $25.1 billion will mature in 2017. The number risies to $52.5 billion in 2020.

“There’s not a lot of this debt that comes due in 2016. But in 2017—that’s when the rubber will really hit the road. Now a lot of these companies are already looking to bankruptcy because people know that the bond position is untenable,” said Dicker.

As the article states, the outstanding U.S. energy debt that matures in 2017 ($25.1 billions) is five times what matures this year ($5.1 billion). How can the U.S. Energy Industry pay back this debt when it can barely pay the interest on its debt currently?

And... to make matters even worse, U.S. oil production is falling rapidly:

US Oil Production

U.S. domestic oil production peaked at 9.6 million barrels per day (mbd) in June 2015 and is currently at 8.7 mbd. This is nearly a 10% decline in U.S. oil production in less than a year. Some may think this huge decline is due to lower oil prices. That may be partly true, however U.S. oil production was going to decline even with higher oil prices.

Which means, the U.S. Energy Sector will be in even more trouble as oil production declines further as the amount of debt that matures continues to increase over the next several years. This is extremely bad news for the U.S. economy as it will have to import more foreign oil to make up for declining domestic production.

Of course, this means the market will have to react by offering 96 and 108 month payment plans to keep the automobile financing bubble from popping. Furthermore, I would imagine the Plunge Protection Team will work overtime just to keep the markets from imploding.

As the fundamentals of the market continue to deteriorate, the precious metals offer the only real safe haven. As I mentioned in a previous article, Something Big Happened In The Gold Market, mainstream investors flocked into Gold ETF's in record numbers during Q1 2016:

Global Gold ETF demand

Investors moved into Gold ETF's in a big way during the first quarter of 2016 on a mere 2,000 point drop of the Dow Jones. Why would investors move into Gold ETF in such a large degree as the market sustained a normal 15% correction?? Hell, in the first quarter of 2009, flows of gold into Gold ETF's surged to a record 465 metric tons, but this was when the Dow Jones was crashing to its lows of 6,700.

I talk to several people in the industry, and the word out there is that mainstream investors are worried as hell about the markets. I believe when the broader markets really start their NEXT BIG CRASH, investors will flow into gold and silver in record volume.

This is not a matter of "IF", but "WHEN." However, if we go by the disintegration market fundamentals, that day will likely be sooner, rather than much later.

Saturday, May 28, 2016

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http://www.globalresearch.ca/we-have-entered-the-looting-stage-of-capitalism/5527203

We Have Entered the Looting Stage of Capitalism

Germany’s Assault On The IMF

Having successfully used the EU to conquer the Greek people by turning the Greek “leftwing” government into a pawn of Germany’s banks, Germany now finds the IMF in the way of its plan to loot Greece into oblivion.

The IMF’s rules prevent the organization from lending to countries that cannot repay the loan. The IMF has concluded on the basis of facts and analysis that Greece cannot repay. Therefore, the IMF is unwilling to lend Greece the money with which to repay the private banks.

The IMF says that Greece’s creditors, many of whom are not creditors but simply bought up Greek debt at a cheap price in hopes of profiting, must write off some of the Greek debt in order to lower the debt to an amount that the Greek economy can service.

The banks don’t want Greece to be able to service its debt, because the banks intend to use Greece’s inability to service the debt in order to loot Greece of its assets and resources and in order to roll back the social safety net put in place during the 20th century. Neoliberalism intends to reestablish feudalism—a few robber barons and many serfs: the One Percent and the 99 percent.

The way Germany sees it, the IMF is supposed to lend Greece the money with which to repay the private German banks. Then the IMF is to be repaid by forcing Greece to reduce or abolish old age pensions, reduce public services and employment, and use the revenues saved to repay the IMF.

As these amounts will be insufficient, additional austerity measures are imposed that require Greece to sell its national assets, such as public water companies and ports and protected Greek islands to foreign investors, principallly the banks themselves or their major clients.

So far the so-called “creditors” have only pledged to some form of debt relief, not yet decided, beginning in 2 years. By then the younger part of the Greek population will have emigrated and will have been replaced by immigrants fleeing Washington’s Middle Eastern and African wars who will have loaded up Greece’s unfunded welfare system.

In other words, Greece is being destroyed by the EU that it so foolishly joined and trusted. The same thing is happening to Portugal and is also underway in Spain and Italy. The looting has already devoured Ireland and Latvia (and a number of Latin American countries) and is underway in Ukraine.

The current newspaper headlines reporting an agreement being reached between the IMF and Germany about writing down the Greek debt to a level that could be serviced are false. No “creditor” has yet agreed to write off one cent of the debt. All that the IMF has been given by so-called “creditors” is unspecific “pledges” of an unspecified amount of debt writedown two years from now.

The newspaper headlines are nothing but fluff that provide cover for the IMF to succumb to presssure and violate its own rules. The cover lets the IMF say that a (future unspecified) debt writedown will enable Greece to service the remainder of its debt and, therefore, the IMF can lend Greece the money to pay the private banks.

In other words, the IMF is now another lawless Western institution whose charter means no more than the US Constitution or the word of the US government in Washington.

The media persists in calling the looting of Greece a “bailout.”

To call the looting of a country and its people a “bailout” is Orwellian. The brainwashing is so successful that even the media and politicians of looted Greece call the financial imperialism that Greece is suffering a “bailout.”

Everywhere in the Western world a variety of measures, both corporate and governmental, have resulted in the stagnation of income growth. In order to continue to report profits, mega-banks and global corporations have turned to looting. Social Security systems and public services–and in the US even the TSA airline security screening–are targeted for privatization, and indebtedness so accurately described by John Perkins in his book, Confessions of an Economic Hit Man, is used to set up entire countries to be looted.

We have entered the looting stage of capitalism. Desolation will be the result.

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http://www.globalresearch.ca/atmospheric-carbon-dioxide-concentration-has-passed-the-point-of-no-return/5527497

Atmospheric Carbon Dioxide Concentration Has Passed the Point of No Return

A recent trip up Washington State’s Mount Rainier brought home to me how rapidly things are changing, even in the high country.

I first climbed the mountain in 1994, when the main route was a picturesque climb up smooth glaciers. Most of the time crevasses weren’t even visible, and snow cover was abundant.

But anthropogenic climate disruption (ACD) has been speeding up with each passing year, and in the same area 22 years later, I found large portions of it nearly unrecognizable. We took a somewhat different route than the one I’d climbed in 1994, primarily because the lower portion of that route is now unusable, as the glacier it traversed is so broken up and crevassed as to make it impassable.

It being early season (most of the guide services had yet to begin taking clients up the mountain), I expected much heavier snow cover and the snow bridges over crevasses to be in decent shape. That wasn’t the case. After gingerly stepping our way over several sketchy snow bridges, I was grateful we weren’t on the 14,411-foot-high northwestern volcano any later in the season than we were. Thankfully, we were able to summit and get back down without incident.

Less than a year and a half earlier, in December 2014, Nature World News reported that ACD was melting Rainier’s glaciers at “unprecedented” rates (six times the historic speed).

“Changes that normally occur over a matter of centuries are transpiring over decades,” according to the report. “The Nisqually Glacier, for example, one of Rainier’s 28 named glaciers, has been disappearing since 1983. It’s currently at a historic minimum and still shrinking – more than 3 feet every 10 days.”

Paul Kennard, a National Park Service geomorphologist,said of the rapidity of the decline of the glaciers, “If you look at it on a graph, it’s like a Ping-Pong ball just fell off the edge of the table.”

And things have only sped up since then, both in terms of hotter temperatures as well as loss of ice on the Pacific Northwest iconic mountain.

To give you an idea of how rapidly ACD is occurring, one of the most striking infographics I’ve ever seen on the rapidity with which the global temperature is increasing can be viewed here. Make sure you watch it; it only takes a moment.

Climate disruption only continues to speed up.

NASA recently released data showing that the planet has just seen seven straight months of not just record-breaking, but record-shattering heat. It is clear, through the space agency’s data, that this year we are already well on track to see what will likely be the largest increase in global temperature a single year has ever seen.

The NASA data also show that April was the hottest April ever recorded, as well as the fact that it crushed the previous April record by the largest margin of increase ever recorded.

That makes it three months in a row that the monthly record has been broken, and easily at that, by the largest margin ever. When record-smashing months started in February, it was then that scientists began talking about a “climate emergency,” and since then our situation has only escalated.

In particular, the way this is playing out in the Arctic is horrifying. An Arctic without summer sea ice could happen as early as this September, a turn of events that would have serious implications for global climate patterns. The decline in Arctic sea ice extent, area and volume is in the midst of a deep dive more severe than those that occurred in 2007 and 2012. The loss of sea ice is even outpacing the worst-case modeling predictions. It’s worth noting that less than 10 years ago, scientists believed that an Arctic free of summer sea ice was not something that would happen until at least 2100.

But given that a recent four-day period saw a net loss of ice area the size of New Mexico, we will be lucky to see summer sea ice in the Arctic in September two to three years from now. Given the radically high temperature records and corresponding ice loss, scientists have been saying that the Arctic is now in “uncharted territory.”

When we look at the amount of human-generated carbon dioxide in the atmosphere, it too is only continuing to increase.

Global atmospheric carbon dioxide concentration first crossed over the 400 parts per million threshold in 2013, but now, scientists are speculating that we may have entered an era when the global concentration remains permanently over that mark – an event some scientists are seeing as a point of no return.

And with the amount of atmospheric carbon dioxide increasing, temperatures are increasing right alongside it, and with higher temperatures comes a lowering of the oxygen content of most of the global oceans before 2040.

Yes, that is as scary as it sounds. According to a recent press release from theNational Center for Atmospheric Research, a reduction in the amount of dissolved oxygen in the oceans due to ACD is already happening, and will become widespread before 2040.

Matthew Long, the lead author of the study that this press release is based on, stated, bluntly:

Loss of oxygen in the ocean is one of the serious side effects of a warming atmosphere, and a major threat to marine life. Since oxygen concentrations in the ocean naturally vary depending on variations in winds and temperature at the surface, it’s been challenging to attribute any deoxygenation to climate change. This new study tells us when we can expect the impact from climate change to overwhelm the natural variability.

The press release added, “Scientists know that a warming climate can be expected to gradually sap the ocean of oxygen.” This is literally making it harder for fish to breathe, as well as exacerbating the effects of ACD and ocean acidification.

Facts like these are why, according to a report recently published in the UK, a person may be five times as likely to die in an extinction event than in a car crash.

On multiple levels, this is extremely difficult information to take in: emotionally, intellectually, psychologically, spiritually. But this is the world we live in today, and we need an accurate understanding of what is happening in order to make informed, and better choices for how we are to live our lives.

It is in the spirit of providing the most updated, accurate information available that this dispatch is written.

Read on, sit with the information and then use it as a mirror for your life.

Earth

A report by Lloyd’s of London sees the single greatest threat to civilization over the next four decades as ACD-amplified extreme floods and droughts that impact multiple global grain-producing “breadbaskets” simultaneously. Hence, the “Food System Shock” report warns that when this occurs, mass rioting, civil war, terrorist attacks and mass starvation are likely to happen.

The impacts of ACD on various species continue to make themselves known.

A cascade effect of ACD impacting weather, insect availability and other food sources is taking a serious toll on birds like the red knot, which is seeing its populations decline as the birds’ body mass shrinks, according to a recently published study.

The report shows how, in the case of the red knot, the consequences of ACD are only being seen at a distance, which is another important concept for us to get our minds around as the crisis unfolds on multiple levels.

In this case, the body size of the red knot has been decreasing as its breeding grounds in the Arctic continue to warm, but, as the report states:

“The real toll of this change appears not in the rapidly changing northern part of their range but in the apparently more stable tropical wintering range. The resulting smaller, short-billed birds have difficulty reaching their major food source, deeply buried mollusks, which decreases the survival of birds born during particularly warm years.”

On that note, a recently released report by the North American Bird Conservation Initiative shows that one-third of all North American bird species are at risk of going extinct, and ACD is one of the drivers of the catastrophic bird loss.

Water

As usual, the majority of the most dramatically obvious impacts of ACD are in this sector of the dispatch.

The World Bank issued a new report warning that global water shortages will deal a “severe hit” to economies across the Middle East, North Africa, and Central and South Asia as ACD progresses. The report warned that by 2050 growing demand for water from both cities and agriculture will cause dramatic water shortages in regions where it is currently in abundance, in addition to worsening shortages that already exist. This will, according to the World Bank, generate broad amounts of conflict and human migration across the regions cited.

Another report from the World Bank shows that, conversely, by 2050 there will be 1.3 billion people, along with $158 trillion in assets, put at risk from flooding and sea level rise alone. The twin factors of ACD and urbanization are the culprits, and the report warns that increasingly intense extreme weather disasters will continue to make matters worse as well.

Meanwhile, in the Micronesian island nation of Palau, the famous UNESCO World Heritage site of Jellyfish Lake is losing its namesake. Severe drought and increasingly hot temperatures are causing the unique non-stinging jellyfish to vanish, and possibly not return.

Sea level rise is continuing at abrupt rates.

A study in the journal Environmental Research Letters linked ACD-caused sea level rise, along with wave action, to the Pacific Ocean swallowing several villages and five of the Solomon Islands.

More and more studies are showing the likelihood of far higher sea level increases than previously projected, as the rapid pace of melting of both the Antarctic and Greenland icecaps increases. The studies show that abrupt sea level rise is an increasingly realistic threat, with sea levels estimated to rise by six feet within this century, and far higher in the next — flooding out many of the world’s heavily populated coastal areas and cities.

As if to underscore that point, a study recently released by the UK-based charity Christian Aid projected over 1 billion people at risk from coastal flooding by 2060, with the populations of China, India and the United States being the most heavily impacted. Again, ACD and overpopulation are cited as the prime drivers of the crisis.

Recent images of the unprecedented coral bleaching event that is signaling the demise of Australia’s Great Barrier Reef reveal the complete destruction of coral colonies that are large enough to fill an area the size of Scotland.

Recent findings by leading ACD researchers and coral reef scientists show that the exceedingly warm water temperatures that drove the bleaching event at the Great Barrier Reef were made 175 times more likely by ACD, and could well become the “normal” water temperature with permanent bleaching there within the next 18 years.

Meanwhile, India is experiencing dramatic coral bleaching events as well. Rohan Arthur, the scientist who heads the coral reef program at the Nature Conservation Foundation based in India, has been studying the coral reefs and documenting the bleaching. Arthur described India’s widespread coral bleaching as “heart wrenching,” and expects it to continue to worsen.

In Florida, it’s not warm waters that are destroying coral. Instead, acidification is causing that state’s coral to disintegrate faster than had been predicted, and a recent report shows that this trend will only accelerate as ocean acidification progresses, with the world’s oceans continuing to rapidly absorb carbon dioxide.

Positive feedback loops have been wreaking havoc in the Arctic as well.

Arctic Ocean acidification is being sped up by erosion and river runoff in Siberia. As the permafrost is thawing there, coastlines across Russia are falling into the ocean, along with rivers dumping massive amounts of carbon into the ocean, which is all combining to ramp up the acidification, which is bad news for all things living in the once-pristine waters of the Arctic.

In Austria, the glaciers are melting so fast, they have retreated an average of 72 feet during last year alone, which is more than twice the rate of the previous year,according to a recent survey.

In the Antarctic, the news of more melting continues. In eastern Antarctica, where the vast majority of the ice volume resides — an area once believed to be largely free of the impacts of ACD — the Nansen Ice Shelf has produced an iceberg 20 kilometers long. A giant crack in the shelf that has existed since 1999 expanded dramatically in 2014, and that trend continued into this year, when melting on the surface and from the warming seas below the shelf caused an area larger than the area of Manhattan to release out into the ocean.

On the other side of that continent, the Antarctic Peninsula saw an incredible new record high temperature of 17 degrees Celsius last year. This, coupled with the ongoing ramping up of the melting of the ice shelves, is having global implications already, including sea level rise, and impacts on global weather patterns.

Extreme drought across the world continues.

In California, Gov. Jerry Brown has deemed that state’s water conservation efforts permanent, a sign of resignation to the fact that the state’s drought is now being considered ongoing, without an end in sight. Ninety percent of California remains in drought, and summer is just beginning.

As if to underscore that point, Lake Mead, the largest US reservoir, broke a record in May by declining to its lowest level ever recorded.

In Zimbabwe, the UN Development Programme announced recently that 4.5 million people, which is at least half of the country’s total rural population, will need food and water aid by next March, as an extreme drought persists with no end in sight.

Fire

Summer had barely found its stride when residents of Fort McMurray in Alberta, Canada, became part of the historical record: Their town saw the single largest fire evacuation event in Alberta’s history. More than 80,000 residents of the tar sands oil town fled massive wildfires, in what couldn’t be a more obvious sign from the planet that engaging in the most environmentally destructive method of fossil fuel extraction might not be the best idea.

Things settled down a bit after the winds shifted and the fires subsided — until the winds shifted again and the fires returned, forcing yet more evacuations as people again did not get the earth’s memo.

So far this year, 22 times more land has burned than burned in the same period last year, and that year was one of the worst fire seasons in Canada’s history. Meanwhile, Canadian Prime Minister Justin Trudeau, along with the rest of the country’s mainstream media, have opted not to mention ACD when discussing the wildfires that threaten their earth-destroying cash cow, the tar sands.

Meanwhile, a recently published study shows what we are already seeing — that warming temperatures in the northern latitudes are spurring more fires across Alaska, which in turn cause increasingly warming temperatures … hence, yet another runaway feedback loop is unveiled.

Out-of-control wildfires raged across the Russian-Chinese border, as well as nearby Lake Baikal, according to The Siberian Times, resulting in more ACD refugees.

Air

As mentioned in the introduction of this dispatch, heat records around the world continue to be set at a breakneck pace, including the overall record heat increases for the entire planet.

More specifically, Southwest Asia and India recently saw historic heat waves that have brought more than 150 deaths. Cambodia and Laos each set record highs for any day of the year during April. Cambodia saw 108.7 degrees Fahrenheit on April 15, and on April 26, Thailand set a record for national energy consumption (air conditioning), according to The Associated Press.

India went on to break its heat record in May, when the city of Rajasthan saw 51 degrees Celsius (123.8 degrees Fahrenheit), as the heat wave besetting northern India persists, as temperatures have exceeded 40 degrees Celsius for several weeks in a row now.

Looking to the north, the Russian Hydrometeorological Center recently reported that since May 2015, every single month has been the warmest in Russia’s history. By way of example, in March, the temperature deviation on islands in the Barents Sea was a staggering 12 degrees Celsius.

In Alaska, despite it being very early in the summer, heat records are breaking by the dozens. Recent statements from the National Weather Service reported that the towns of McGrath and Delta Junction in the interior of the state hit a high of 78 degrees and a low of 49 degrees, respectively, beating the previous records set in 2005 and 1988 for each. Fairbanks set a new high temperature record of 82, which shattered a century-old record of 80 degrees set in 1915.

The largest city in Alaska, Anchorage, set a record of 72 degrees, a stunning seven degrees above the previous high that was set in 2014, while Juneau and Bethel, set new heat records. Even Barrow, in the far north, saw 42 degrees recently, breaking the previous heat record by four degrees. Given that Anchorage has already seen the second-largest number of record high temperatures for any year and there is still 63 percent of the year left, 2016 will certainly break the previous record of high temperatures seen, which was set in 2003.

In Africa, the heat continues to be unrelenting, and that trend is expected to not only continue, but increase, according to a study recently published in the journal Environmental Research Letters. According to the study, by 2100, heat waves on that continent will be hotter, last longer and occur with much greater frequency.

One of the research team’s authors said that “unusual” heat events will become much more regular, “meaning it can occur every year, and not just once in 38 years – in climate change scenarios.”

Denial and Reality

Never a dull moment on the ACD denial front, especially with Donald Trump dominating headlines in the United States, and the corporate media giving him all the coverage he could possibly hope for.

Trump, who could very well become the next US president, recently named ACD “skeptic” Rep. Kevin Cramer (R-North Dakota) as his energy adviser. Cramer is one of the leading oil and gas drilling advocates in the US, and North Dakota has been one of the states on the front lines of the US shale oil and gas boom.

Over in the UK, a group of the most eminent scientists there recently criticized The Times of London newspaper for its “distorted coverage” of ACD, along with the “poor quality” of its journalism around human-caused climate disruption. Media misrepresentation has been a major culprit for much of the public unawareness and misunderstanding of ACD.

Back in the US, on the reality front, Kevin Faulconer, the Republican mayor of San Diego, is pushing forward with a plan to run the city completely on renewable energy by 2035.

Another hopeful note: Recent polling shows that now half of all conservatives in the United States believe that ACD is real, which is an increase of 19 percent over the last two years.

Exxon, now targeted by a campaign aimed at making the oil giant pay for ACD, isworking overtime to blunt the attack. Exxon is sending executives and lobbyists to meet with state representatives in an effort to mitigate what could be extreme economic losses for the company if the campaign continues to be as successful as it has been thus far. The campaign against Exxon is now deeply tied to the overall campaign to pressure universities and businesses to divest from fossil fuel companies, which has been incredibly successful and is becoming more so by the week.

Lastly, in a story that has not gotten anywhere near the coverage it deserves, the US government has been actively resettling its first official ACD “climate refugees.” A large grant of federal money was given to Louisiana’s community of Isle de Jean Charles, where the people have been struggling (and losing) against rising seas, coastal erosion and increasingly violent storms.

It is important to note this development, since well before 2100, there will be millions of people along US coastlines who will have to be resettled further inland as sea level rise only continues to speed up.

Meanwhile, the National Oceanic and Atmospheric Administration’s latest inventory of greenhouse gas emissions provided the warning that methane and carbon dioxide emissions are “going completely in the wrong direction,” as the amounts being injected into the atmosphere continue to accelerate.

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http://www.globalresearch.ca/can-russia-survive-washingtons-attack-nuclear-war-with-russia-is-entirely-possible-in-the-next-year/5526632

Can Russia Survive Washington’s Attack? “Nuclear War with Russia is Entirely Possible in the Next Year”

It is not only American generals who are irresponsible and declare on the basis of no evidence whatsoever that “Russia is an existential threat to the United States” and also to the Baltic states, Poland, Georgia, Ukraine, and all of Europe. British generals. also participate in the warmongering. UK retired general and former NATO commander Sir Richard Shirreff, Deputy Supreme Allied Commander in Europe until 2014, has just declared that nuclear war with Russia is “entirely possible” within the year.

My loyal readers know that I, myself, have been warning for some time about the likelihood of nuclear war. However, there is a vast difference between me and the Western generals. I see the war as the consequence of the neoconservative drive for US world hegemony.

The neoconservative drive for world hegemony is acknowledged by the neoconservatives themselves in their public position papers, and it has a 15 year record of being implemented in America’s many and ongoing wars in the Middle East and Africa. Although the Presstitute media does its best to keep our focus away from the known facts, the facts remain known.

The position of the Western generals is that “Russian aggression” is driving an innocent America/NATO to nuclear war.

Here is General Shirreff’s list of “Russian aggressions”:

“He [Putin] has invaded Georgia, he has invaded the Crimea, he has invaded Ukraine. He has used force and got away with it. In a period of tension, an attack on the Baltic states… is entirely plausible.”

Shirreff is talking about make-believe happenings that even if real would be taking place inside what were until recently Russia’s long-standing national boundaries.

General Shirreff strikes me as either uninformed or a dissembler. It is the United States and Israel who use force and get away with it. The Russian invasion of the former Russian province, Georgia, was a response to the American puppet government’s invasion of South Ossetia in which the American and israeli trained and equipped Georgia troops killed Russian peace-keeping troops and a large number of South Ossetian civilians while the Russian government was at the Beijing olympics.

It only took a small fraction of the Russian Army a few hours to roll up the American and Israeli trained Georgian Army. Putin had the former Russian province in his hand. He could have hung the American puppet president and reincorporated Georgia back into Russia, where it probably belongs, having spent all of modern history in that location.

But Putin did not see Georgia as a prize, and having made his point, let the Americans have their puppet state back. The president at the time, a scummy scoundrel, was thrown out of the country by Georgians and now serves the American puppet state of Ukraine, like so many others who are not Ukrainian. Apparently, Washington can’t find enough Ukrainians who will sell out their country for Washington and has to bring in foreigners to help Washington rule Ukraine.

There has been, alas, no Russian invasion of Ukraine. Putin would not even accept the pleas of the Russian majority populations in the breakaway provinces of Donetsk and Luhansk to be reincorporated back into Russia where they belong. If Putin actually wanted Ukraine, he doesn’t need to send in an army. He can take back the eastern and southern parts just by accepting the pleas of the people to again be a part of Russia.

The only plea that Putin accepted was that of the Crimeans, who with an extremely high turnout never experienced in “western democracies” voted 97.6 percent to rejoin Russia, where Crimea resided for longer than the US has existed, until Khrushchev, a Ukrainian, transferred Crimea from the Russian Soviet Republic to the Ukrainian Soviet Republic when both were provinces of the Soviet Union.

Little doubt that Putin accepted Crimea’s plea because Russia’s only warm water port and entrance into the Mediterranean Sea is Russia’s naval base in Crimea, and little doubt that Putin refused Donetsk and Luhansk in order to deflect Washington’s propagandistic charges, such of those of former general Shirreff. Putin reasoned, mistakenly in my view, that his refusal to accept Donetsk and Luhansk would reassure Washington’s NATO puppet states and lessen Washington’s influence over Europe. For the corrupt Europeans, facts are of no consequence. Washington’s money prevails.

Putin doesn’t understand the power of Washington’s money. In the entire West only money counts. There is no such thing as Washington’s word, government integrity, truth, or even empirical facts. There are only well- propagated lies. The entire West is a lie. The West exists for one reason only–corporate profits.

The retired general Shirreff claims, without any evidence, which is typical, that Putin “used force and got away with it.”

What force is the general talking about? Can he identify the force? The independent international observers of the Crimean voting report that it was completely fair, that there was no intimidation, no troops or any Russian intimidation present.

The former NATO general Shirreff believes that a Russian attack “on the Baltic states is entirely possible.” For what reason? The Baltic states, former provinces of the Soviet Union, comprise no threat whatsoever to Russia. The Russians have no reason whatsoever to attack the Baltic states. It was Russia that gave the Baltic states their independence. Just as it was Russia that gave Ukraine and Georgia their independence.

Imperial Washington is leveraging the reasonableness of the Russian government to put Russia in a propagandistic light. The Russian government has permitted itself to be put on the defensive and has given the attack to Washington.

Russia has not attacked anyone except the terrorist group ISIS. Allegedly, Washington is opposed to terrorism, but Washington has been using ISIS in an effort to overthrow the Syrian government with terrorism. Russia has put a halt to that. The question before us is whether the Russian government so desires to be accepted by the West that Putin sells out Syria to Washington/Israeli dismemberment in order to show that Russia is a good partner for the West.
If Russia doesn’t get over its affection for the West, Russia will lose its independence.

My understanding is that Russia has been resurrected as a Christian, morally principally country, perhaps the only one on earth. The question that the Russian people and their Russian government need, desperately, to ask themselves is: Do we want to be associated with the War Criminal West that disobeys not only its own laws, but also international laws?

The vast majority of the evil in the world resides in the West. It is the west with its lies and greed that has devastated millions of people in 7 countries during the new 21st century. This is the most threatening beginning of a new millennium in modern times.

Unsatisfied with its looting of the Third World, South America, Greece, Portugal, Latvia, Argentina, and now Brazil and Ukraine, the Western Capitalists have their sights set on Russia, China, India, and South Africa.

What a prize it would be to get Russia with all that vast expanse of Siberia that can be environmentally brutalized and destroyed for capitalist profits.

The Russian government’s offering of free land in Siberia had better be limited to Russian citizens Otherwise, the land is likely to be bought up by the West, which will use its ownership of Russia to destroy the country.

The Russians and the Chinese are blinded by the fact that they lived for decades under oppressive and failed regimes. They look to the West as success. Their misreading of the West endangers their independence.

Neither Russia nor China seek conflict. It is a gratuitous and reckless act for Washington to send the message to Russia and China that they must choose vassalage or war.

Wednesday, May 25, 2016

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http://www.truthdig.com/report/item/reform_or_revolution_20160522

Reform or Revolution

On the night of Jan. 15, 1919, a group of the Freikorps—hastily formed militias made up mostly of right-wing veterans of World War I—escorted Rosa Luxemburg, a petite, 50-year-old with a slight limp, to the Eden Hotel in Berlin, the headquarters of the Guards Cavalry Rifle Division.

“Are you Frau Rosa Luxemburg?” Capt. Waldemar Pabst asked when she arrived at his office upstairs.

“You decide for yourself,” she answered.

“According to the photograph, you must be,” he said.

“If you say so,” she said softly.

Pabst told her she would be taken to Moabit Prison. On the way out of the hotel, a waiting crowd, which had shouted insults like “whore” as she was brought in under arrest, whistled and spat. A soldier, Otto Runge, was allegedly paid 50 marks to be the first to hit her. Shouting, “She’s not getting out alive,” he slammed the butt of his rifle into the back of her head. Luxemburg collapsed. Blood poured from her nose and mouth. Runge struck a second time. Someone said, “That’s enough.” Soldiers dragged Luxemburg to a waiting car. One of her shoes was left behind. A soldier hit her again. As the car sped away, Lt. Kurt Vogel fired his pistol into her head. The soldiers tossed Luxemburg’s corpse into the Landwehr Canal.

Karl Leibknecht, who had coaxed a reluctant Luxemburg into an uprising she knew was almost certainly doomed, had been executed a few moments before. The Spartacus Revolt was crushed. It was the birth of German fascism.

The killers, like the police who murder unarmed people of color in the streets of American cities, were tried in a court—in this case, a military court—that issued tepid reprimands. The state had no intention of punishing the assassins. They had done what the state required.

The ruling Social Democratic Party of Germany created the Freikorps, which became the antecedent to the Nazi Party. It ordered the militias and the military to crush resistance when it felt threatened from the left. Luxemburg’s murder illustrated the ultimate loyalties of liberal elites in a capitalist society: When threatened from the left, when the face of socialism showed itself in the streets, elites would—and will—make alliances with the most retrograde elements of society, including fascists, to crush the aspirations of the working class.

Liberalism, which Luxemburg called by its more appropriate name—“opportunism”—is an integral component of capitalism. When the citizens grow restive, it will soften and decry capitalism’s excesses. But capitalism, Luxemburg argued, is an enemy that can never be appeased. Liberal reforms are used to stymie resistance and then later, when things grow quiet, are revoked on the inevitable road to capitalist slavery. The last century of labor struggles in the United States provides a case study for proof of Luxemburg’s observation.

The political, cultural and judicial system in a capitalist state is centered around the protection of property rights. And, as Adam Smith pointed out, when civil government “is instituted for the security of property, [it] is in reality instituted for the defense of the rich against the poor, or of those who have some property against those who have none at all.” The capitalist system is gamed from the start. And this makes Luxemburg extremely relevant as corporate capital, now freed from all constraints, reconfigures our global economy, including the United States’, into a ruthless form of neofeudalism.

Wage slavery and employment are not determined by law but by the imperatives of the market. The market forces workers to fall to their knees before the dictates of global profit. This imperative can never be corrected by legal or legislative reform.

Democracy, in this late stage of capitalism, has been replaced with a system of legalized bribery. All branches of government, including the courts, along with the systems of entertainment and news, are wholly owned subsidiaries of the corporate state. Electoral politics are elaborate puppet shows. Wall Street and the militarists, whether Trump or Clinton, win.

“Capitalist accumulation requires for its movement to be surrounded by non-capitalist areas,” Luxemburg wrote. And capitalism “can continue only so long as it is provided with such a milieu.”

Capitalism searches the globe to exploit cheap, unorganized labor and pillages natural resources. It buys off or overthrows local elites. It blocks the ability of the developing world to become self-sufficient.

Meanwhile, workers in the industrialized world, stripped of well-paying jobs, benefits and legal protections, are pushed into debt peonage, forced to borrow to survive, which further enriches global speculators.

An economy built on credit, Luxemburg foresaw, transforms a regular series of small economic crises into an irregular series of large economic crises—hence two major financial dislocations to the U.S. economy in the early part of the 21st century—the dot-com collapse of 2000 and the global meltdown of 2008. And we are barreling toward another. The end result, at home and abroad, is serfdom.

Luxemburg, in another understanding important to those caught up in the pressures of a single election cycle, viewed electoral campaigns, like union organizing, as a process of educating the public about the nature of capitalism. These activities, divorced from “revolutionary consciousness”—from the ultimate goal of overthrowing capitalism—were, she said, “a labor of Sisyphus.”

We who seek to build radical third-party movements must recognize that it is not about taking power now. It is about taking power, at best, a decade from now. Revolutions, Luxemburg reminded us, take time.

In an understanding that eludes many Bernie Sanders supporters, Luxemburg also grasped that socialism and imperialism were incompatible. She would have excoriated Sanders’ ostrichlike refusal to confront American imperialism. Imperialism, she understood, not only empowers a war machine and enriches arms merchants and global capitalists. It is accompanied by a poisonous ideology—what social critic Dwight Macdonald called the “psychosis of permanent war”—that makes socialism impossible.

The nation, in the name of national security, demands the eradication of civil liberties. It defines dissent as treason. It creates a centralized system of power that ultimately—as has happened in the United States—serves the dictates of empire rather than democracy. Democracy becomes farce, or in our case, a tawdry reality show that coughs up two of the most unpopular presidential candidates in American history. Society devolves into what Karl Marx called “parliamentary cretinism” or what political theorist Sheldon Wolin called “inverted totalitarianism.” Democracy is a facade.

Capitalism is ruled by two iron dictums—maximize profit and reduce labor costs. And as capitalism advances and consolidates power in a world where resources are becoming scarce and mechanization is becoming more sophisticated, the human and environmental cost of profit mounts.

“The exploitation of the working class as an economic process cannot be abolished or softened through legislation in the framework of bourgeois society,” Luxemburg wrote. Social reform, she said, “does not constitute an invasion into capitalist exploitation, but a regulating, an ordering of this exploitation in the interest of capitalist society itself.”

Capitalism is an enemy of democracy. It denies workers the right to control means of production or determine how the profits from their labor will be spent. American workers—both left and right—do not support trade agreements. They do not support the federal bailouts of big banks and financial firms. They do not embrace astronomical salaries for CEOs or wage stagnation. But workers do not count. And the more working men and women struggle to be heard, the harsher and more violent the forms of control employed by the corporate state will become.

Luxemburg also understood something that eluded Vladimir Lenin. Nationalism—which Luxemburg called “empty petty-bourgeois phraseology and humbug”—is a disease. It disconnects the working class in one country from another—one of the primary objectives of the capitalist class.

As parties on the left and the right—in our case, the corporate Democrats and corporate Republicans—vie to be more patriotic and hawkish, they deify the military and the organs of internal security. They revoke basic civil liberties in the name of national security and law and order. This process grooms a segment of the population, as we see in Trump rallies, for fascism.

Nationalism, Luxemburg warned, is always a tool used to betray the working class. It is, she wrote, “an instrument of counterrevolutionary class policy.” It unleashes powerful forms of indoctrination.

As the contagion of nationalism erupted at the outbreak of the First World War, liberal European parties, including the German Social Democrats, swiftly surrendered to right-wing nationalists in the name of the fatherland despite many preceding years of anti-war rhetoric. Luxemburg saw this betrayal as evidence of the fundamental moral and political bankruptcy of the liberal establishment in a capitalist society.

By the time the war was over, 11 million soldiers on all sides, most of them working-class men, were dead. Capitalists, who had grown rich from the slaughter, had nothing to fear now from the working class. They had fed them to the mouths of machine guns.

Luxemburg distrusted disciplined, revolutionary elites—Lenin’s vanguard. She denounced terror as a revolutionary tool. She warned that revolutionary movements that were not democratic swiftly became despotic. She understood the peculiar dynamics of revolution. She wrote that in a time of revolutionary ferment, “It is extremely difficult for any directing organ of the proletarian movement to foresee and calculate which occasions and factors can lead to explosions and which cannot.” Those who were rigidly tied to an ideology or those who believed they could shape events through force, were crippled by a “rigid, mechanical, bureaucratic conception.”

Revolutions, for Luxemburg, were as much the product of mass struggle as its instigator. She knew that revolution was a “living” entity. “It was formed not from above,” but from the “consciousness of the masses.” And this consciousness took years to build. A revolutionary had to respond to the unpredictable moods and sentiments that define any revolt, to the unanticipated responses of a population in revolt.

Lenin, to achieve power during the 1917 revolution, was forced to follow her advice, abandoning many of his most doctrinaire ideas to respond to the life force of Russian Revolution itself. “Lenin,” Robert Looker wrote, “was a Luxemburgist in spite of himself.”

A population finally rises up against a decayed system not because of revolutionary consciousness, but because, as Luxemburg pointed out, it has no other choice. It is the obtuseness of the old regime, not the work of revolutionaries, that triggers revolt. And, as she pointed out, all revolutions are in some sense failures, events that begin, rather than culminate, a process of social transformation.

“There was no predetermined plan, no organized action, because the appeals of the parties could scarcely keep in pace with the spontaneous rising of the masses,” she wrote of the 1905 uprising in Russia. “The leaders had scarcely time to formulate the watchwords of the on-rushing crowd.”

“Revolutions,” she continued, “cannot be made at command. Nor is this at all the task of the party. Our duty is only at all times to speak out plainly without fear or trembling; that is, to hold clearly before the masses their tasks in the given historical moment, and to proclaim the political program of action and the slogans which result from the situation. The concern with whether and when the revolutionary mass movement takes up with them must be left confidently to history itself. Even though socialism may at first appear as a voice crying in the wilderness, it yet provides for itself a moral and political position the fruits of which it later, when the hour of historical fulfillment strikes, garners with compound interest.”

I have covered uprisings and revolutions around the globe—the insurgencies in Central America in the 1980s, two Palestinian uprisings, the revolutions in 1989 in East Germany, Czechoslovakia and Romania, the street demonstrations that brought down Slobodan Milosevic in Serbia. Luxemburg’s understanding of the autonomous nature of revolt is correct. A central committee, like Lenin’s Bolsheviks, because it is ruthless, secretive and highly disciplined, is capable of carrying out a counterrevolution to take control of and crush the democratic aspirations of the workers. But such organizations are not the primary engine of revolution. The messiness of democracy, with all its paralysis and reverses, keeps revolution alive and vibrant. It protects the population from the abuse of centralized power.

“Without general elections, without freedom of the press, freedom of speech, freedom of assembly, without the free battle of opinions, life in every public institution withers away, becomes a caricature of itself, and bureaucracy rises as the only deciding factor,” Luxemburg said.

The consequences of not carrying out a revolution against corporatism are catastrophic. This makes Luxemburg vital. She warns us that in a crisis, the liberal elites become our enemy. She cautions against terror and gratuitous violence. She urges us to maintain open, democratic structures to ensure that power rests with the people. She keeps us focused on the ultimate savagery of capitalism. She understands the danger of imperialism. And she reminds us that those of us committed to socialism, to building a better world, especially for the oppressed, must hold fast to this moral imperative. If we compromise, she knew, we extinguish hope.