The economic forecasting firm most widely followed by large investors wrote August 4 that economic growth is “solid – not too hot, not to cold.” Inflation is so near zero as to be essentially non-existent. Monetary policy is well-considered and deserves only a moment’s pause to assure that the Federal Reserve will avoid a “lurch towards tightening.” Employment growth is where it needs to be. The worldwide Associated Press reported U. S. Treasury debt securities “are viewed as one of the world’s safest investments.” Are we back in Kansas, or in the Land of Oz?
Rounding Out the Rosy Scenario
Hold on. The major media have a more complete story. The U. S. is
bastion of representative government, reveres its constitution and
respects personal liberty. As the only super-power, the U. S. protects
sea lanes of commerce for the good of mankind, and intervenes militarily
abroad only when U. S. vital interests are threatened.
The U. S. was attacked by Muslim terrorists on September 11, 2001,
who hijacked airliners and flew three of them into two towers of the
World Trade Center in lower Manhattan and into the Pentagon in
Washington, D.C. Since then, the U. S. has pursued wars against terror
globally, especially against a terrorist organization called “Al Qaeda”
blamed for 9-11. In so doing, the U. S. invaded Afghanistan and Iraq
with military forces to replace their governments. More recently, the U.
S. has played less openly forceful roles in changing governments in
Egypt, Libya, Syria and Ukraine.
The U. S. moved through these challenges successfully, emerging with
greater but still manageable debt. The Federal Reserve avoided mistakes
of the Great Depression by furnishing generous monetary liquidity since
mid-2008 to prevent economic or financial contraction. Another cycle of
strong growth hastened by government stimulus will dispose of the debt
concern. Technological progress is giving new meaning to the concept of
compound growth. The future has dazzling prospects, even while some are
struggling and need continuing government assistance.
This outlook is adopted by many, perhaps most, successful people in the
U. S. business and financial sectors. But respectable company will be
little comfort if the rosy scenario is wrong. Are there reasons to doubt
Coming Soon to a Theater Near You
Consider a brief summary of reasons to be skeptical of premises
mentioned above, and to exercise considerably more caution than during
“normal” economic conditions.
1. The relationship of U. S. monetary policy, fiscal policy and the
financial markets is deceitful and unsustainable.
Stock and bond prices suffer shortness of breath with every
mention of possible “tightening,” or “tapering,” or overnight funds
rate hikes by the Federal Reserve. ZIRP proponents insist continued
growth in the monetary base of $85 billion monthly is both a good thing
and essential to preventing economic and financial collapse.
Is production of U. S. goods and services expanding at anywhere near $85
billion monthly? Of course not. In fact, real GDP is shrinking and the
Fed’s money creation is entirely inflationary, deferred by Fed policies
against lending into the main street economy.
The Fed is adding those billions in new monetary base for one primary
reason – to fund the federal deficit. Treasury debt securities have no
other buyer now except the Fed. A Belgian account accumulating hundreds
of billions in Treasuries is almost certainly another Fed deceit: an
alter ego construct to make it appear someone else is buying, not
A secondary purpose of the Fed’s excessive money growth is to support
stock and bond prices. U. S. government direct ownership of publicly
traded companies is estimated to be above 20% of the entire market, and
higher for the larger companies of the Dow.
Until the U. S. stems deficit spending, new money will continue pouring
from the Fed.
Some observers err by presuming any hike in the overnight
funds rate will shrink the money supply. No, a funds rate hike will
reduce the market value of Treasuries already accumulated by the Fed, so
the Fed’s capacity to soak up excess monetary base will deteriorate
from negligible to non-existent as rate hikes proceed.
S. foreign policy is deceitful, destructive and dangerous.
A current example is the bloody coup in Ukraine executed in March by
mercenaries (un-uniformed special ops) run by CIA, State Department,
George Soros and other oligarchs. Puppet officials in the newly
installed Kiev government pushed the conscripted Ukrainian military into
providing the appearance of legitimacy for a scorched earth campaign by
mercenaries against eastern Ukraine provinces. Shelling of civilian
neighborhoods has been heavy and deadly, while Russian humanitarian aid
was kept out by Kiev based on charges the aid would be cover for a
A commercial airliner, Malaysian Airlines Flight 17, was mysteriously
diverted over battle zones of eastern Ukraine and shot down. The U. S.
immediately charged the defenders of eastern Ukraine with the
shoot-down, asserting it was done by surface-to-air missiles supplied by
Russia. The U. S. did not release its own surveillance data on the
event, but participated in a formal investigation of the incident with
three other nations after gaining agreement that any single nation among
the four could veto any release of the results of their inquiry. Leaked
results reported a conclusion that a jet fighter of the Kiev regime
shot down Flight 17, but the U. S. vetoed a public announcement or
release of the evidence.
More importantly, U. S. sponsorship of the coup against the Ukrainian
elected government violated treaty obligations by which the U. S. and
Russia agreed to refrain from undermining governments in nations
bordering the other. This limitation is vital to national defenses due
to the short-range, low trajectory delivery systems for nuclear weapons
today. In this context, U. S. actions in Ukraine were seen by Russia as
reckless and provocative beyond the norm, especially since U. S.
“defense” policy was amended after 9-11 to include preemptive attack of
any nation viewed as a threat.
events of September 11, 2001, must be reassessed.
In this context, after the bloody coup in Kiev, Russia announced it
would begin releasing intelligence that the world should know. Other
nations, and some parties in the U. S., began receiving such
intelligence “dumps” in June. One U. S. group called Veterans Today has
begun reporting its analysis of intelligence received of this nature.
Foremost of this new intelligence is detailed evidence that the attack
on the World Trade Center of 9/11/01 was a nuclear event. Evidence
includes designs of nuclear instruments used, their placement in each of
the WTC twin towers to bring them down, where the nuclear materials
were obtained, and where and how they were re-machined to create the
design suited to the purpose. In addition, the newly available evidence
includes a 2003 report by the U. S. Department of Energy, kept secret by
the U. S. government, which describes the nuclear instruments and how
they brought down the buildings.
VT claims expertise in the technical fields involved and, in addition,
says it is aided and advised clandestinely by experts in the U. S.
Department of Energy (DOE), including experts who worked on the 2003 DOE
report, and the International Atomic Energy Agency (IAEA).
VT says the evidence in its possession is both valid and conclusive that
nuclear weapons of special design, not jet aircraft, brought down the
WTC twin towers, and that the U. S. and at least one foreign government
were complicit from the outset. The nuclear materials and related
mechanisms allegedly were obtained from the U. S. arsenal by U. S.
officials over a period of years and proliferated so extensively as to
provide the fire-power for 50-plus major terrorist attacks already and
more to come in the future.
VT has published about 25 reports on the topic already, and its senior
editor, Gordon Duff, has given several public interviews, with
considerably more detail than reported here. See these comments by DOE
experts, for example.
Examine the subject carefully, or ignore it at
your peril. Credibility of facts is paramount always, but never
more than when evaluating statements of the U. S. government or major media.
The 2003 DOE report on 9/11 was reviewed by top levels of U. S.
government, leading members of Congress in both houses were briefed, but
nothing was said to the people or even the families of 9/11 victims.
Attacks on other nations and many infringements of human rights have
been justified by the false descriptions of what occurred that day, all
of which require reconsideration.
and the EU may be at the point of collapse, which would likely end much
of U. S. hegemony in the world.
Jim Willie, the pseudo-named Ph.D. in
statistics who writes the widely followed Hat Trick Letter, reported on
August 31 that highly trained professional fighters from Germany,
France, Holland and other European nations have entered the fighting in
Ukraine on the side of the eastern provinces and against the U.
S.-installed regime in Kiev. Willie says the major European countries
see the U. S. actions in Ukraine as designed to poison their relations
with Russia, with whom they enjoy an annual trade surplus of $110
billion. Worse, U. S. actions could deprive Europe of a steady supply of
Russian natural gas.
Willie reports that French “freedom fighters” who joined the defense of
eastern Ukrainian provinces have captured mercenaries employed by
Blackwater, the private firm used by the U. S. in Iraq and elsewhere.
The French fighters were said to be questioning their captives,
preparing to release news about their role in the war against the
eastern provinces. Cease-fire discussions jumped to Kiev’s front burner
promptly upon disclosure of this information.
Willie says the U. S. told Germany in 2012 of plans to replace the
Ukraine government. Germany responded, in part, by demanding
repatriation of its gold held by the Fed, although that demand was later
moderated. Germany and
France are refusing to subject their domestic economies to the desires of
owners of international banks, who control U. S. policy and the Federal
of climate and weather makes economic prospects of every nation
Thanks to large scale but clandestine geoengineering activities of the
U. S. government, California is in death throes of its worst drought in
No “natural” cycle of rainfall will relieve the drought, because nature
is not in control, either in California, or in the rest of the U. S.,
or in the world.
Rain is kept from the watersheds of northern California, away from the
would-be farmers of the great central valley, and can be moved across
the Rockies to the wheat fields of the Great Plains and the Midwest, at
times and in amounts which assure a much diminished wheat yield. No
one’s judgment about climate or weather is good when subjective controls
are in the hands of people (governments) with an unannounced agenda.
All of this far understates the concerns for life and health of every
species of plant and animal, most certainly including humans. Metallic
aerosols sprayed into the stratosphere, millions of tons of it, are
highly toxic to everything and everyone which touches or breathes it.
NASA has described these metallic aerosols as “mechanical analogs” of
biological weapons of mass destruction.
Yourself Ahead of the Pack
You may choose to inform and prepare yourself further, even to
act to overcome these concerns. How much confidence you place in those
who own the six corporations which control the major media is your
decision. If you already know the Great Depression was caused by U. S.
government actions, not by business cycles, flaws in capitalism, the
gold standard, or even by the Federal Reserve, you are a big step ahead
in evaluating the challenges we face. ~
Content copyright . Classical Capital LLC. All rights reserved.