classical economics
for analysis,  forecasting
and policy design

Parallel Universes

                       PARALLEL UNIVERSES IN CRISIS
                             Will Either “Reality” Survive?

                                                                    By Wayne Jett © September 5, 2014

     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 it?

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 selling.

     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.

2.     U. 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 Russian invasion.

     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.    

3.     The 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.

4.     NATO 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 Reserve.

5.      Geoengineering of climate and weather makes economic prospects of every nation unknowable.

     Thanks to large scale but clandestine geoengineering activities of the U. S. government, California is in death throes of its worst drought in recorded history. 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.

Consider 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.  ~