Outside of three West African nations, which are being ravaged by Ebola, the health threat from Ebola still remains small. Am I dismissing the risk of further spread? No. Am I dismissing the fact the numbers infected are still exponentially increasing? No. Am I even claiming that Ebola won’t return to the US and spread globally? No. What I am saying is that for those of us in the US, the biggest danger Ebola poses to the masses in the near term is economic. In fact, if you want to best prepare for an Ebola pandemic, you should prepare for an economic collapse, which will affect you long before you run a real risk of infection. Read more
Archive for Economy
President Obama and his top military advisors have learned nothing and have made a grave mistake starting a war with Syria using ISIL as the pretext. Just as I was confident and proven correct that this situation would materialize, I am equally confident in my analysis that this new war will lead to America’s greatest foreign policy disaster to date. Neither war with Syrian nor ISIL will be decisive, successful, or lead to greater security for the American people. However, the war may indeed turn out to lead to America’s unwinding as the world’s sole superpower and economic bankruptcy. This post will continue my analysis on the on-going crisis unfolding in the Middle East respective of Obama’s newest war. Read more
Former U.S. Secretary of State Henry Kissinger wrote: “For the West, the demonization of Vladimir Putin is not a policy; it is an alibi for the absence of one.” Kissinger, like him or not, is spot on in his succinct assessment of Obama’s policy for Russia. As the West descends into another reckless and disastrous war in the Middle East, Putin must be quietly laughing knowing that very soon the US will soon have its Soviet moment of collapse. In fact, to strategically defeat the US, all Russia must do is wait for the utter mismanagement of our nation to bring about its implosion. In this third and final installment of our exclusive analysis of the conflicting Russo-American policies, it is clear that in the first major post-Cold War struggle between Russia and the US, it will be Russia that scores a victory in the Ukraine crisis. Read more
I would like to advise our readers that now would be a good time to buy any fuel you may need for the coming months in bulk if you have the option. At the least, you might as well fill your gas cans and fuel tanks because the price of gas is not going to be getting any cheaper anytime soon. Due to the support provided by the United States (Authorized by President Obama) and Saudi Arabia (Qatar and Turkey to lesser extents), we have armed, trained, and equipped the largest Islamic extremist army of modern times and unleashed it on the Middle East. This army is now massacring thousands across Iraq and Syria to include countless Christians. The actions of this terrorist army will soon come home to haunt Americans that were too apathetic and or foolish to demand President Obama and Congress cease support to terrorist rebels in Syria.
As Iraq implodes, it is the Saudis and Qataris who are handsomely profiting from the spike in oil prices. The spike is a result of Obama’s schizophrenic foreign policy disaster that made it all possible. As America’s badly battered economy faces another blow it can ill afford you now must spend even more money you don’t have to just fill your gas tank, remember it was President Obama and his pals in Saudi Arabia that hooked you up. Oh, and just in case you didn’t catch it, the US government is using your tax dollars to fund terrorists that want to kill you. President Obama is claiming the US needs gun control while using your tax dollars to hand military grade advanced weapons to 100% ardent, hardened, American hating, terrorists. To add insult to injury, this is all being done while simultaneously the Department of Homeland Security (DHS) is chasing domestic boogiemen at home. Remember, DHS is claiming you, your veteran uncle, and your 90 year old grandmother are potential terrorists so you must be subjected to total surveillance and physical searches that in the extreme could be considered forcible sodomy. Don’t worry though; this is all for your “security” and to “protect” you.
As I write, the extreme of extreme Islamists forces are massacring their way to Baghdad. To date, the Iraqi army has been totally routed and has fled leaving all of the weapons and equipment for the enemy. The true test of the Islamist army will be when it begins to enter Baghdad and the first all Shia neighborhoods. This army is not immune to the same carnage any army would face in urban combat where the fighting is up close and brutal. As such, I expect the onslaught to be stalled in Baghdad and perhaps even to bypass Baghdad for key oil infrastructure. Nonetheless, the Sunnis have defeated and subjugated the Shia in Iraq before and it is likely they could again. Even if the extremist forces are halted entering Baghdad, they will most likely turn the thrust of their advance to the east and bypass Baghdad. This will allow the army to seize and or destroy key oil infrastructure. This all but guarantees disruptions to production and that the cost of oil and therefore fuel is about to skyrocket.
What can be done about this for now is most likely nothing. We can watch and enjoy the spike in gas prices as our contracting economy shrinks even faster. However, I would recommend you take a whopping five minutes out of your day and cut and paste an email to your two senators and one representative in Congress and demand Congress freezes any form of support or aid to the rebels/terrorists fighting Assad and now campaigning in Iraq. You may also want to call into your favorite talk radio show and discuss these topics. Finally, come November, vote out every single incumbent and replace them with independent representatives.
By Guiles Hendrik
June 18, 2014
All rights reserved.
And just as we warned….
The US Bureau of Reclamation released its first outlook of the year and finds insufficient stock is available in California to release irrigation water for farmers. This is the first time in the 54 year history of the State Water Project. “If it’s not there, it’s just not there,” notes a Water Authority director adding that it’s going to be tough to find enough water, but farmers are hit hardest as “they’re all on pins and needles trying to figure out how they’re going to get through this.” Fields will go unplanted (supply lower mean food prices higher), or farmers will pay top dollar for water that’s on the market (and those costs can only be passed on via higher food prices). – See more at: http://www.thedailysheeple.com/feds-withhold-water-to-california-farmers-for-first-time-in-54-years_022014#sthash.bgLTNut1.dpuf
February 20, 2014: Today the world’s largest retailer posted a staggering 21 percent drop in fourth quarter profit and. Walmart quickly blamed bad weather and cuts to food stamps, but this is a weak excuse at best. Even Walmart doesn’t seem to buy their excuses because they slashed their profit forecast for the rest of the current year. Per Walmart’s rationale, the cut would only be justified if they expected more snow this summer! A closer look reveals a much direr situation in the US economy. As the world’s largest retailer, a near quarter drop in profit is the proverbial canary in the coal mine for the US retail market.
Contrary to the endless spin vomited by the US mass media and Obama White House, the economic reality is grave. The US economy never recovered and is about to fall off another, much larger cliff. As a result of inflation, un/underemployment, high taxation, suffocating regulation, sky high food and fuel costs, centralized economic planning, massive debt, and an industrial base that has gone overseas, the US economy is now in shambles. For the majority of Americans, they have witnessed over the last decade a near total destruction of their wealth and a rapidly deteriorating standard of living. Americans no longer have the disposable income they enjoyed just six years ago and as a result are not spending money. This fact has been demonstrated by repeatedly bad retails sales numbers that go much further back than any snowstorms can justify this winter. As a result, the retail sector of our economy is suffering the initial brunt of the next wave of collapse. The result of this will be a tidal wave of retail stores shuttering store fronts this year. Already there are historic levels of vacant retail space in the US and this datum point is set to rapidly rise.
Consider that Wal-Mart earned $4.43 billion in the quarter that ended Jan. 31, 2014, which was over a BILLION dollars less than its posted $5.6 billion earnings for the same quarter just a year earlier. A billion dollar difference! The weather and food stamps simply are not sufficient to justify this near one quarter loss in profit. For starters, let’s dispatch the snowstorm myth. Every winter, including last winter brought cold weather and snowstorms that spread across the country. Demolishing the food stamp myth is even easier. First, if the majority of shoppers at Walmart are welfare and food stamp recipients, our country has already gone over the edge and no longer has a productive middle class. This stat alone would spell disaster for the US. Second, and more specific to dismantling the Walmart alibi, the amount of people and thus the overall amount of money paid out in food stamps actually increased over the period. That would mean their profit from food stamp recipients should have gone up now down. Furthermore, even though the food stamp programs’ overall $80 billion annual budget was only cut by about $4 billion, Walmart seems to think it alone endured over a billion dollar loss as a result. Only a fool could conjure this type of math knowing full well that would represent well over 100% of what has allegedly been cut to date in payouts from the program.
Walmart’s excuse for the collapse in profits is a pure lie to placate stockholders and the real data are far scarier. Illustrative of this fact is that Wal-Mart itself reports that its stores, which account for about 60 percent of its business, recorded their fourth consecutive quarter of revenue declines at stores that have been open at least a year. This revenue report undeniably shows that revenues were dropping long before any snowstorms or cuts to food stamps. No business, not even Walmart can withstand near 25% quarterly drops in profit for long.
What we are witnessing now is the collapse of retail, which will ripple throughout the economy in the form of job losses, higher unemployment, and even less income. This will undermine government tax revenues, kill manufacturing, pop the housing bubble, and cripple the overall economy. As we have been warning, the next, much bigger, economic collapse is nearing and you need to prepare. Woe be the economist that shrugs off consistent reports of massive retail losses; especially, when they are coming from the world’s largest retailer.
By Guiles Hendrik
February 20, 2014
All rights reserved.
In case you have been asleep for the last five years or somehow managed to not buy any groceries, you should know that the price of groceries has quadrupled over as many years. For the rest of us feeding our families, we are intimately aware of how much more we have had to pay for groceries in recent years. It has gotten so bad that many families that used to be able to purchase roughly a shopping cart of groceries for $100 now are paying upwards of $400 dollars for less food of less quality. Coupled with high prices of gas and energy, most of us have experienced a large net loss of our purchasing power as our disposable income has all but vanished. Of course this directly contradicts the Obama Whitehouse’s assertions that there has been little to no inflation and economically things are better. Ask yourself this, do you actually have more disposable income than you did just a few years ago? Has your quality of life improved? Sadly, the answer is more often than not a resounding “NO” as the numbers of individuals on government assistance programs like food stamps has exploded. This article will discuss the basics on how to weather the coming food price crisis.
You must understand that our current state of decay is just the beginning as things will get much worse in the United States. For starters, California is experiencing historic drought that is decimating its agricultural industry as we outlined in our previous article. Far worse is that our government is moving closer and closer to a totalitarian state run by left leaning Marxists heavily influenced by global bankers and corporate elites that care nothing for you and are only focused on increasing their power, wealth, and control over you. Add to this the fact the Federal Reserve continues to counterfeit over a trillion dollars a year and then bills you, the taxpayer, for the created debt even as you suffer from the very real devaluation of the dollar because of the Federal Reserve’s engineered inflationary measures. These few issues are by no means all inclusive, but illustrate some of the major drivers pushing costs higher and higher as your wages and real earnings are decimated. These government programs will only intensify as higher taxes, fees, and penalties are lumped on by local, state, and federal governments to offset their rising operating costs, which rob you of any remaining disposable income. Thus, it begs the question that many are asking…. “How will I be able to feed my family and still pay my bills?”
Fortunately, the answer is neither new nor complex. One must become self-sufficient. Self-sufficiency is the same solution our forefathers intuitively recognized and the maxim most farmers, pioneers, and Americans lived by up until the last half of the 20th Century. Many thought the time for small farms and garden plots was gone for good, but the crisis of increasing food prices has driven Americans back to rediscovering that the old ways were in fact better. So, if you have been saving your survival seeds for when things get bad, you should seriously consider planting them this year and procuring new seeds for future crops while you still can. Once things go beyond the tipping point to a full blown crisis, it will be too late to plant, grow, harvest, and use your seed stores. The garden will provided you affordable, healthy, great tasting, fresh food when no one else can afford or find it in grocery stores. Further, any excess can be sold or used to barter for other goods you may not have in surplus.
A healthy garden takes years to fully develop to its maximum potential so starting now allows you to experiment with crops, fail (yes, you will have failures), build a tool inventory, and begin building an inventory of food stores via dehydration (drying) and canning. You will learn what varieties of plants grow best where in your soil. You will also get to taste various vegetables and decide which are best suited to your family’s palate. Devising a pest control strategy that works will also be vital. All of this takes time, sweat, and practice. There are no real shortcuts to this so get started now.
To begin, select the best land you can for your crops. This may mean moving to a new location with better soil, water access, and sunlight or simply developing your backyard. For you folks still imprisoned in the cities, you may want to invest in hydroponic systems or rooftop gardens. Having the right tools will be critical. The best hand tools are not the ones made today, but old antique hand tools with solid steel implements. You can often find these cheaply online or at flea markets and yard sales. Make sure you have redundancy. You will also need an ample supply of good seeds. I recommend that you stick with quality heirloom seeds that have been optimized for your growing conditions. Make sure you get a wide variety of seeds so that you can experiment with different crops. For example, if one specific variety of tomatoes does poorly, you may find a different variety does very well saving you from a total crop loss for the season. You will also need to devise a method to protect your crop from pests such as animals, insects, and diseases. I have found solar powered electric fences are the best method for keeping out animals like deer that will wreck an entire garden in a single night. The solar powered electric fence is very easy to set up and affordable. Dusting crops like beans and potatoes with lime does well at keeping insects back while preventing nutritional diseases. I also found using a torch around plants to kill weeds is an effective organic solution to weed control. When it comes to fertilizers, bone meal and manure are two of the best organic solutions. Just make sure any manure you use is seasoned well so that you don’t introduce invasive weed species to your soil.
For those of you looking to grow gardens or enter into small farming operations, you may also want to employ low profile or clandestine methods. Many of our readers live in suburban neighborhoods with unconstitutional and oppressive home owners association (HOA) covenants that ridiculously forbid gardening. In these areas fencing in your yard may be your easiest option. If that isn’t possible, many people have turned their basements into mini greenhouses, but run the risk of drawing attention of local authorities that may mistakenly suspect illicit marijuana grow operations are afoot. In this case it may be best to actually let local law enforcement know what you are doing to prevent a mistaken and highly dangerous SWAT raid on your home. However, if the wrong people know you have food, they may target your residence to steal your crops so discrete is good. Those of us lucky enough to be in rural areas do not have oppressive HOAs and can grow large gardens, but could become subject to crop confiscation. The US Department of Agriculture (USDA) has steadily increased its efforts to identify all farming operations throughout the country and many suspect that in a time of crisis the government could use this information to confiscate crops to feed the masses. As protests in Kiev turn violent, an important, illustrative lesson from the Ukraine’s history comes to mind. During the period between 1932 and 1933 when the Ukraine fell under Soviet control, an estimated 12 million Ukrainians were intentionally starved to death as a result of resisting Stalin’s takeover of power and government mismanagement of agricultural policies. During this period, the communist government forced confiscation of all household foodstuffs and restricted the population movement to other areas all while shipping off, warehousing, destroying, or leaving unharvested millions of tons of grain that could have fed the Ukrainians. The urban populations suffered the worst and died by the millions of starvation and disease while the rural populations were demonized and blamed by the communists for the government’s actions. If you have any question as to why this genocide was carried out, Henry Kissinger succinctly explains it when he stated that if you want to control the population, control its food supply.
This Ukrainian lesson illustrates how a centralized government like ours that mismanages policies and is continuously seeking greater power could seize your crops during a crisis to effectively control our citizens. To avoid this, don’t report your crops to the government. Further, plant multiple gardens and crops in various areas throughout your property. One garden would be overt while the others would be hidden and made to “NOT” look like a standard garden. In fact, if your garden looks like a fallow field of weeds or just a part of the forest it will draw little to no attention. In addition, cultivate wild crops and livestock considered “weeds” and wild animals so that they go overlooked even by the most zealous commissar sent by the government to inspect, record, and confiscate your crops. This technique is highly successful and practical for preppers since even the most savvy of government bureaucrats are generally idiots in respect to anything that actually requires real work or true practical knowledge. The average USDA inspector couldn’t tell you the difference between spinach and burdock and certainly wouldn’t recognize chicory and dandelions as a staple food crop. Wild leeks (ramps) and asparagus also would be passed over by even many country folks. They also wouldn’t recognize your cover crops that feed a disproportionately large deer herd, but certainly would be able to tag, number, and seize every chicken and head of cattle you may possess. Fish ponds are also nice additions because unless the bureaucrat is ready to dig out and drain your pond or spend a lot of time learning to fish, any fish you have stocked will also go under reported. Fruit and nut trees interspersed with the forest also will most likely go unnoticed so look at planting stands of these trees in small clearings vice large orchard settings.
On the backside of raising your crops, you must secure your harvest. The very best way I have found to accomplish this is by building multiple low profile root cellars away from your house. A root cellar can be very simple (essentially a hole in the ground with an insulated cover) where root crops, fruits, and canned goods can be stored for long periods of time. These natural storage vessels can be constructed in a way as to be virtually invisible to all but the most astute observer. By utilizing outdoor food storage locations, you prevent your food supplies from being looted or confiscated in their totality while building a strong alibi respective of “having no food.” Anyone doubting you would certainly search your home and after finding only the minimum staples would be forced to conclude that you indeed have no food and thus, could not be growing additional food since it would have to be stored somewhere.
In summary, you have been warned of impending food price spikes even as your wages are diminished by our central economic planners. Your choices now are to either run the risk that all will be well and government that created these problems will suddenly fix them or implement your last minute survival food production plans. I am recommending to all of our readers to plant every inch of land they can this year since I have become convinced that our economy is teetering on the brink of its greatest economic collapse in history. Food will become scarcer and prices will rise with every coming month. This is a certainty. If you decide to plant the worst outcome would be to have an overabundance of food come the autumn harvest and critical practice and experience growing a garden for real. Although we preach last “minute” survival, “minute” is very relative in respect to gardens where a more apt description would be last season survival. Failure to plant your crops this spring will delay any chance of a food crop by not just a year, but a year and a half because of the lead-lag time between planting and harvesting. Time is wasting so get busy!
By Guiles Hendrik
February 18, 2014
All rights reserved.
As California’s drought stretches into years, the situation according to California’s Governor Jerry Brown is becoming dire. “Today I’m declaring a drought in the state of California,” said Brown. “We’re facing perhaps the worst drought California has ever seen since records began being kept about 100 years ago.” As a result, incremental actions to restrict water use have been placed into effect. Most recently, Governor Brown announced last Friday that they won’t send any water from the state’s vast reservoir system to local agencies beginning this spring, an unprecedented move that affects drinking water supplies for 25 million people and irrigation for 1 million acres of farmland. The restrictions in water use will be particularly detrimental for anyone involved in agriculture where irrigation is vital for California’s crops raised primarily in arid regions. The result of this drought and necessary restrictions to California industry and agriculture will mean a spike in food prices and even greater job losses in California.
People fall over themselves lauding the wonderful weather Southern California offers its residents. However, what Southern California doesn’t offer is adequate fresh water to support the state’s massive population. Fresh water is the most basic resource for life; yet, over 38.3 million people call it home even though natural sources of freshwater are far inadequate. Historically, the snow pack in the Sierra-Nevada Mountains has filled reservoirs to supplement California’s water demand, but with record low snowfall, no relief is in sight or expected. More alarming is the fact that climatologists are warning that this drought could continue anywhere from a couple decades to two hundred years based on California’s historical climatic cycles. If indeed this drought persists unabated, it could mean that California will be entering a historic dust bowl situation that could effectively collapse the state.
Further compounding the problem is that California leads the country as the largest producer of agricultural products (crops and livestock), accounting for more than 11 percent of the national total, based on the 2007 Census of Agriculture. To support this, approximately 80% of California’s freshwater is used for irrigation. Given the shortages, California cannot provide freshwater for its inhabitants and agriculture and industry. As such, the tap will be turned off first for California’s farmers. In fact the mere threat of water rationing has already forced many farmers to leave fields fallow and write off this year’s crops as a total loss. The situation is even worse for fruit and nut orchards where the water restrictions could kill productive trees that take years to grow to fruit bearing size. Livestock too will not survive without water so cattle, swine, and poultry populations will be slaughtered and not replaced. As farmers shutter their operations until conditions improve, the businesses that sprung up around California’s agricultural industry are also going out of business. This will cost California billions of dollars in lost revenues and further exasperate the already high unemployment in California.
The result of the drop in California’s agricultural production will restrict food supplies even as demand globally is growing causing food prices to skyrocket this year. This will result in major shortages of products that California produces for the United States such as artichokes, lettuce, spinach, peaches, and strawberries. Many other products such as tomatoes, bell peppers, and carrots, which California produces 1/3, 1/2, and 2/3’s of respectively, will see major price spikes. Meat prices will also spike after cattle, swine, and poultry populations are slaughtered since herd numbers are already at historic lows. If not already bad enough news, inflation will continue to erode the purchasing power of the dollar compounded by the dollar’s weakening status globally as a currency. Add this to a nation with an economy already in collapse and its citizens watching any remaining disposable income vanish as their quality of life descends down a toilet bowl lined by socialist and Marxist economic policies and we have a very real recipe for social unrest.
In case the impact of California’s drought hasn’t caught your attention yet and you still don’t see why it matters, let me be clear. The drought in California will cause your grocery bill to double again this year. If you are an average, struggling, middle class American, you will be forced to cut even more from your already bone thin budget and for the first time actually have to go without when it comes to many food items so that you can pay your most basic bills. This will further reduce the disposable (what if any is left) income Americans have to spend, which will put even more retailers out of business this year. This will lead to a cycle of more layoffs and higher unemployment as the US economy enters into a collapse of historic proportions.
Taking a page from the government, this impending disaster offers opportunity for those savvy enough to foresee it and take action. For starters, it would be wise to enter into direct agreements with cattle and pig farmers for set amounts of beef/pork now before prices spike. Buying a steer or hog now at current prices that will be slaughtered later in the year will save you hundreds of dollars if not more later in the year when prices spike. To illustrate the already rising prices, the prices of beef have already spiked 16.8% this year and bacon is up 22.8%. Further, if you haven’t started a sustainable garden you need to begin now. Invest in a large quantity and variety of heirloom seeds suitable for your growing conditions. Gardens are not something that happen magically after tossing a few seeds into the yard. As we have said many times, gardens take time (years), work, and experimentation to perfect. Anyone waiting to the last minute to plant a garden “when things get really bad” will fail miserably. Invest now in a garden that will produce beyond the needs of your family and it will reward you handsomely with tasty, healthy food at a price you can afford. If you don’t have the land, make a deal with someone who does so that you can gain access to fresh produce. Further, any additional produce not needed can be sold or bartered at a premium price later this summer when the shortages and price hikes really begin to be felt.
In summary, California is entering a period of drought that may last beyond our lifetimes or end next year. Either way, the water shortage will cause grocery bills to spike to record high levels. This will further destabilize the already sick US economy. To protect oneself, the smart prepper will invest in food products and sustainable food production capabilities such as good land, farms, livestock, and gardens to insulate his family from the upcoming price hikes and shortages and turn misfortune into a money making opportunity.
By Guiles Hendrik
February 17, 2014
All rights reserved.
The stage is set for final economic liquidation of the United States: Detroit request 50,000 immigrants
What does a corrupt and dysfunctional government due with its constituents after it has sucked every last drop of blood from them? Replace them of course. Detroit is not liquidating its population in the sense of Mao or Stalin, but even a quick study of Detroit’s demographics will reveal it has undergone a mass exodus. Detroit, the once vibrant industrial city is now no longer able to pay its bills, which has led to bankruptcy and an inability to maintain its infrastructure. As the lights permanently go dark and packs of wild dogs roam the streets, entire portions of Detroit have been turned into gangland ghettos reminiscent of the prescient 1987 film RoboCop. To “fix” the problem our “enlightened” elites created, Detroit’s government is planning to import 50,000 new workers (slaves) to Detroit. However, what they aren’t telling you is that their idea of a “fix” and your idea of a “fix” are radically different and you are not going to like it. The elite fix will be the final act in the economic liquidation of the United States…or in layman’s terms, an engineered economic collapse. The collapse of Detroit wasn’t destined. It could have been averted if responsible fiscal policies had been instituted and a total takeover of the political system by unions and global corporations prevented. However, this was not to be. The marriage between government and big business was allowed to occur without protest and was actually welcomed much like President Obama’s dictatorial declarations in his 2014 State of the Union address. Soon though, greed took control of Detroit as handouts became preferred over earned paychecks. It wasn’t long after that the powerhouses of American industry lost their competitive edge. As one business after another closed its doors, Detroit was stripped of its vital tax revenues it had reliably pilfered from the middle class and left with massive debts to cover the costs of the remaining non-productive elements within the city. ’s huge and now growing debt became a time bomb with a short fuse that sealed its economic destruction. In the wake of Detroit’s demise, the city has left an older generation of workers stripped of their pensions and retirements and a younger generation of unemployed. As for its industry, well, it of course left the US. The propaganda pipedreams sold to the people of Detroit were simply dressed up lies that are designed to appeal to the masses, the “working classes,” the average hardworking Americans, but are pure economic poison designed only to solidify the status quo of the elites at the expense of competitive businesses and true economic growth. This type of snake oil appears in many ways such as a minimum wage. These policies sound great in the near term because they claim to insulate and protect jobs, but are doomed to fail over the longer term because they strip away a company’s need and or ability to be competitive in the true global market. Without the need to compete, laziness and apathy creep into a business. Innovation, research, and development are shelved because they detract from maximizing profits. Instead of building better products and operating more efficiently, companies found it easier to simply control the market bureaucratically. As this incestual, economic disease metastasized throughout government, laws were passed to further “protect” the “established” businesses and enrich the elites. This biased the market against new and competitive businesses making it impossible for them to compete and killed any residual business initiatives. As a result, only large, non-competitive, and highly inefficient businesses that could afford to buy politicians were left. Of course this system was flawed, but by the time the Detroit woke up to realize the market was a global one, more competitive industries at home and abroad put the Motor City out of business. This self-destructive economic cycle ultimately killed the host…the hard working middle class of Detroit. Once the middle class were decimated, the tax revenues collapsed and Detroit effectively became economically insolvent. Elites tend to like to keep and expand their power and wealth. As soon as the elites realized they no longer could maintain the status quo within the United States, they took their businesses overseas where they could find cheap labor to exploit for maximum profit. This is often a result of centralized economic controls associated with leftist economic policies and unions that favor such things as an artificially high minimum wage and unmanageable pension plans. These policies make it impossible for even a healthy company to compete against lean companies with low overhead. As such, with the help of fancy marketing to the public and highly paid lobbyists, “fair” trade deals such as the North American Free Trade Agreement (NAFTA) were passed. The trade deals were written and designed to benefit the proverbial 1% and not the middle class. The real effect would be to destroy national borders and tip the balance of “fairness” against the US worker. The elites knew this meant that the American standard of living would plummet as industry and jobs flowed out, but not into the US. This Machiavellian decision was made because America was becoming a saturated, stagnant market with high overhead costs due in no small part to union demanded benefits, high taxes, and oppressive government regulations. In order to expand profits, the companies needed access to the global market and the fastest growing segments of the world population, such as in Asia. NAFTA and the current, emerging, and highly secretive Trans Pacific Partnership (TPP) Agreement have and will, respectively, decimate the living standard in the US. Detroit’s demise should be a warning to anyone that believes globalist policies will lead the US to new levels of economic prosperity. These same mechanisms that brought down Detroit are at work and in advanced stages now across the entire US. BOTH political parties are to blame for this. The Republican President George H.W. Bush signed into law the NAFTA and Democratic President Obama has unrelentingly forced a radical socialist/Marxist agenda upon the US to complete the globalist designs oft referenced by the former President Bush as the “New World Order.” President Obama is also nearing completion of the super-secret TPP agreement with China, which if NAFTA is any indicator, will be catastrophic for the US economy. Nonetheless, even without the foreign trade sellouts agreements, the economic and regulatory policies of the progressive left alone will be enough to crush the last remaining vibrant elements of the US economy. The bottom line is centrally planned economies have never worked historically anywhere in the world and will not work in the US. So one may ask what does importing 50,000 immigrants have to do with helping Detroit. The answer is it won’t help you and it won’t help Detroit; it will help the 1%. The elites and their paid politicians have set the stage for the perfect storm of economic collapse in the US. Detroit is the first pilot test. Detroit will get a temporary boost of cheap labor that will be sold to the public as a way to produce tax revenue and rejuvenate the city’s ailing population. However, it will further disenfranchise American workers, increase domestic unemployment, and diminish the US standard of living. The guest workers will not be paying taxes because their income will be below the taxable limit, but they will certainly benefit from social welfare programs such as free healthcare, food stamps, subsidized housing, and welfare. This will be a huge net loss financially for Detroit and the US, but that doesn’t matter to the globalists expecting windfall profits and living abroad. In exchange for the sellout, the bought politicians get a readymade pool of new constituent votes via “amnesty” and more campaign donations from the global corporations to keep them in power. In the end it will only be the wealthy elites of the global corporations that increase their profits, which from their offshore perches and beach front mansions in Monaco seem like a good idea. The overriding premise of this is that cheap labor increases the profit margin of big globalist corporations allowing them to put anyone else not enjoying the same type of special favors out of business. The paradox of this logic was noted ironically by Karl Marx in that if no one has money to buy the goods, the capitalist system will collapse. However, that is the future and this is the now. So how does this perfect storm work? Global corporations will have a new pool of what amounts to domestic slave labor that maximizes their profits. They accomplished this by lobbying (paying off) politicians to pass amnesty, not enforce border security, and approve the 50,000 work visas for Detroit. Detroit will be the first city to undergo this transnational corporate takeover. This will put more Americans out of work because other “good” businesses paying legitimate wages can’t compete. As the American workers lose their jobs and remain unemployed, non-Americans will be brought in to assume those American jobs, which will further increase the pool of under or unemployed. Tax revenues will plummet as social welfare and public service costs sky rocket. This will spread to more cities and put more and more people out of work. As more cities collapse like Detroit, they will be next in line for “help” and will receive hundreds of thousands of immigrant workers. As each city falls, the global corporations will continue to transition their workforce to cheap labor and continue to increase their profit margins. Bought politicians will look the other way and proclaim the benefits of diversity. This business model is only possible because our once free Republic has been turned into a complete social welfare state. As such, the burden of paying a living wage is no longer on the corporations, but on you the taxpayer. You, the dwindling middle class worker, will be responsible for paying the immigrant workers’ healthcare (Obamacare), food stamps, welfare, education/tuition, costs for municipal services, and housing subsidies to name some of the major welfare programs. This burden will be unsustainable for a solvent country. Thus finite, it will lead to the final economic collapse of the US even as key stocks soar from record corporate profits. There simply will not be enough tax paying workers to support the welfare state leviathan and just as Detroit collapsed as its tax revenues to payouts went negative, so too will the US. To complete this logic, one must ask then what good it does the companies to collapse the US economy. To understand, one must remember the corporations are “global.” They don’t operate in a world of boundaries and borders. Their practices are parasitic and predatory and operate for maximum profit now. That means as our nation is bled of every last cent and economically destroyed, they will just move on to a new market like they did in Detroit. The money the corporations make will be used to dominate the next emerging market and the cycle will continue with the American worker now the cheap labor supporting the more advanced economies in other parts of the world. This leaves you stuck with the debt, poverty, and the tyranny of near absolute dependence on the government. This dependence equates to government control (by the very same bought politicians that got you in this situation), which means you are no longer free and ruled by a corrupt elite. You are now a slave and the globalists control you.
By Guiles Hendrik
January 30, 2014
All rights reserved.
Image © Albert Duece
As we have exhaustively written and warned in previous articles, a new war will need to be manufactured to continue to justify the continued redistribution of billions of taxpayer dollars to the military-industrial complex financed by the big banks. The titans of the defense industry and the loan sharks of the banking world cannot afford peace and will stop at nothing to create fear and war to ensure their wealth is secure. The United States economy has not made a true comeback as has been touted by the media and falsified government reports and soon the bubble the Federal Reserve created will have to be deflated. To keep the public distracted and the money flowing, a new plan to create fear, instability, and possibly war in the Pacific has now begun.
It is becoming increasingly clear that no matter what deal is or is not struck in Afghanistan respective of continued troop deployments, NATO and the US forces are going to be forced to retreat within the next 12 to 18 months. The Taliban’s (Pakistan’s) strategic victory is all but assured now, which will make future occupation by U.S. personnel impossible. Further, the movement toward war with Iran by way of Syria has been temporarily checked by Russia until Israel can build enough clandestine support behind the scenes to sabotage any future peace deal or unilaterally attack Iran. As such, the military-industrial complex has turned back to its fear mongering and war propaganda to begin conditioning the public that North Korea and China are again dire threats that must be stopped at all costs and that war could break out at any moment. Of course this hyperbole is used to justify the “need” for new advanced weapons, continued funding of obsolete, redundant, or unnecessary defense systems, and to generally control the masses. As a nation we have witnessed this ploy over and over resulting in unnecessary wars from Vietnam to Iraq that have cost millions of lives and trillions of dollars worldwide. The wanton destruction wrought by these industry power plays can’t be understated. For example, as we reported in the spring of 2013, North Korea was rebranded as a strategic missile threat overnight and then only weeks later forgotten after the defense-aerospace industry scared Congress and the public into refunding their missile defense programs that have been wasting billions of tax dollars and were rightfully on the sequester chopping block. The fact that the bankers and defense propagandists nearly started World War III didn’t matter a bit because no matter whether or not war broke out, it was you and I that would have to bleed, pay, and die for their fortunes. This process of fear mongering and dangerous brinkmanship is a trademark defense industry ploy used to make sure you continue to write them checks for billions of dollars without question. Without question, it is one of the most diabolical, destructive, despicable, and immoral of all lies repeatedly pushed on the citizens of nations.
Fortunately, the American people have to some degree grown war weary and have been sensitized to the lies of war propaganda. This is good and bad. It is good in that the simplest of lies will no longer suffice to convince the American people to once again go to war and bleed and pay for the elites to become wealthier. However, the elites recognize this and will conduct even more aggressive and despicable acts to create the conditions for war. For illustration, just this year in Syria, a false flag chemical weapons attack was launched against innocent civilians in an attempt to frame the Syrian regime and justify the US becoming involved in yet another war in the Middle East. It is important to note that this attack using weapons of mass destruction was resorted to after numerous lesser attempts to “convict” the Syrian regime in the minds of the public and precipitate a war had failed. This included launching mortar rounds into Israel and Turkey, launching air attacks into Syria directly from Israel, directly providing training and weapons to known terrorists operating in Syria, repeatedly violating Syrian airspace so that they would shoot down a NATO jet, and persistently trying to brand the radical Islamic jihadists of the revolutionary forces as a peaceful, unified, pro-US, Free Syrian Army. All of these acts were designed to either directly or indirectly illicit a defensive response from Syria, which Washington could then spin into an act of “aggression” to justify retaliation and war. The Syrian example is just one of many illustrating to what deranged extremes our hijacked government will go to to force the US into another unnecessary war and is a cautionary tale of things to come.
Relative to the recent wars in the Middle East, a war in the Pacific promises to be far more devastating and has the real possibility of involving nuclear weapons and electromagnetic pulses designed to wipe out all unshielded electronics. However, “devastating” translates to windfall profits for the defense industry and their financiers on a scale not seen since World War II. A war or even the threat of war with China would mandate trillions of new defense spending financed through loans to the US government (ironically, this new debt would probably be bought by China). New high tech weapon systems would have to be fast tracked into service and even more draconian surveillance and cyber warfare systems would also be justified to “protect” the homeland. The Defense Department would once again get a blank check unlike any before from Congress to pursue an entirely new portfolio of overpriced defense programs, many of which, would target the American people as much as foreign entities as the current “War on Terror” has demonstrated.
The march toward war in the Pacific will be far more costly and devastating than even the worst case scenarios for the Middle East if allowed to move forward. Not only will the US suffer a total economic collapse, but unprecedented death and destruction if the game of brinkmanship is overplayed and China and or North Korea call our bluff. China is not an ally of the US, but is also not any more of a threat than we decide to create. If you want to check China, it will be best done through effective economic competition and by strengthening our freedoms and liberties at home. Runaway defense spending will only weaken the US. Stop giving China preferential trade status, stop creating massive debt at home, stop educating China’s military scientists, stop allowing China to steal our most sensitive secrets, stop providing China and North Korea aid, and hold the line on our sphere of influence. At home we have to cut taxes on citizens as well as reduce the overwhelming bureaucratic weight of endless regulations and taxes on businesses. We need to protect our workers, our products, our technology, and our industry by not undermining them with imbalanced trade deals favoring offshoring and overseas manufacturing. We also need to secure our borders, dismantle the surveillance state, cut the size of government, wean the population from state dependencies, and become as individuals and a nation much more self-sufficient. Cutting the Defense Budget will go a long way to neutralizing the financial influence the military-industrial complex has over US policy and would strengthen, not weaken the security of the US. All of these actions will go far toward reigning in massive and unnecessary spending and debt. The media must also be returned to its watchdog status of the government and be purged of its recently assumed role as the public relations arm of the political parties. No American interest is served by a biased media. Failure to provide honest, unbiased, and factual news to the American people will lead to further deceit, loss of liberties, degradation of our quality of life, and potentially devastating wars.
Once again we are here warning the public of what is transpiring behind the scenes and are the first to bring it to you. The best way to battle this latest escalation toward war is to become informed, know the facts, and make sure others are educated as well. Neither the media nor the government can lie to you if you independently have sought out and found the truth. Take this truth to the internet, the airwaves, the cable news programs, your local clubs…anywhere you can find an audience. By exposing the lies and replacing them with knowledge and facts you can collectively disrupt and stop the plans of the defense and banking industries and their puppets within the government. Those of you who serve the government; especially in the military, have an obligation to the American people and the Constitution to also speak out, to refuse to become an active participant, and to stop these unconstitutional and thus illegal and immoral actions. Only through action can we overcome these true threats to the US, the gravest of which, have originated internally.
By Guiles Hendrik
December 11, 2013
All rights reserved.
Before the showdown in Washington began over Obamacare and the Debt Ceiling, one would have been unlikely to see the US Park Police as particularly political. In fact, a whole list of goon squads from the Executive Branch come to mind long before the rather jovial looking park rangers when it comes to being the enforcers of ridiculous, unnecessary, and oppressive Obama policy. Nonetheless, the US Park Police have vaulted ahead of the pack as the leading minions of the police state. This short article details some of the major outrages and hypocrisies related to the actions of the Park Police.
Since the “government shutdown,” the Park Police have demonstrated new levels of absurd and heavy handed government oppression. In fact, the park police officers have spent more time, manpower, and energy ensuring that the public is prevented from obtaining any gratification from our National Parks than if they had just kept them open. Only in government could such a ludicrous situation be created. For example, it takes far fewer officers to allow people to drive by Mount Rushmore and continue on their way after a few minutes of photos than it does to try and seal off an entire mountain from public view. Without doubt, the Park Police are operating on orders from Washington designed to punish the people the government is supposed to serve. The abuse of American citizens is a thinly veiled attempt to punish the citizenry into compliance with a tyrant’s edict and is ample grounds for impeachment proceedings. This situation is further proof that the government is an entity apart from the citizens it was solely created to serve and instead now operates as a separate entity serving only the elites.
The parks are owned by the people, not the government. A legitimate government only exists to serve the best interests of the people and is not an entity upon itself. It is impossible for the “government” to “own” anything and wield authority over it contrary to the public’s interests. Therefore the notion of “government” property is an illusion created by corrupt tyrants in an effort to seize greater power from the people they falsely pretend to represent. As such, the Park Police have no authority to refuse the public access to public property. However, based on Park Police actions against the citizens from which it derives its funding and legitimacy, it appears that the “government” is acting as an independent entity. The Park Police are taking actions as if they own the parks. Based on this, one must logically conclude a few unsettling facts. First, if the government owns the parks and can unilaterally deny access to “national” parks, then the government is an independent, private entity and not an organization of the citizenry designed to support the good of the people. Second, this entity mimics a criminal enterprise calling itself the government and has fraudulently seized taxpayers’ dollars and spent them for their own corporate interests contrary to their stated purpose. As such, the government has seized (arrested) citizens that attempted to view, visit, or pass through what was purported to be “public” property that now has been nationalized by a socialist corporate entity.
The Park Police are also glaring hypocrites and or idiots. The notion that park police officers would “follow orders” and bar the few remaining World War II Marine veterans from visiting the Marine Corps War Memorial (aka The Iwo Jima Memorial), a memorial that was built to honor these same men, defies all reason. It is bluntly a damn disgrace. In fact, you would have to be a complete dip$%&! to actively prevent citizens and tourists from passing by monuments, memorials, and desolate tracts of natural acreage that on any other day, people quietly milled past without a second thought or park police officer anywhere nearby. If President Obama hoped to cause outrage in the public, he succeeded, but that outrage is not targeted at the Republican Party. It is targeted at his petty, childish, tantrum and he deserves impeachment.
Another interesting case of hypocrisy I have found relates to the inability of the Park Police to observe obvious lessons and project them into their day-to-day lives. Rangers and park police will post signs throughout our national parks that read “don’t feed the wildlife because it creates dependency.” They will even ticket/fine any violator and counsel them on how dangerous and destructive it is to give free handouts and food to the wildlife because it makes them overweight, lazy, and dependent. This dependency ultimately leads to problem bears demanding more food and stealing it from homes or dying of starvation since they lose their ability to acquire food on their own. One would think that with their very own signs staring them in the face that at least a few park police officers would realize this whole budget debate is about creating dependency. Sadly though, it appears these Obama goons blindly support the edicts of a government regime that has made creating dependency its cornerstone policy even in light of knowing the disastrous effects it will have on the animal species, which humans are not exempt.
One must also address the constitutionality of this whole showdown. In terms of the constitution, the President is wrong and holds no cards. Contrary to his statements respective of not negotiating, if the Republicans hold firm, President Obama MUST negotiate. The Constitution very clearly and explicitly gave the power to fund or not to fund ALL federal programs to the Congress. This power was explicitly given to Congress (specifically the House of Representatives) as a means to check the Executive and Judicial branches and countermand actions of previous congresses that were presently seen as unnecessary or contrary to the wishes of the public. It was in fact for just this type of situation, where an unchecked executive attempts to act contrary to the wishes of the people and jam a law through, that Congress was given the power to financially defund that action to stop it. Further, President Obama is wrong in stating “Obamacare” is the law and must be funded. There is ZERO constitutional obligation on Congress to fund any program unless the people/states it represents deem it. Furthermore, President Obama’s statements far exceed the constitutional authorities vested in the executive. Remember, the executive doesn’t make or interpret laws. The executive’s primary purpose is to “execute” the laws passed by Congress. With this in mind, the President has no authority to demand any law be enacted and enforced that Congress doesn’t want or has killed through defunding.
Respective of funding, both Congress and the President do have an obligation to pass a balanced budget and to prevent the US from defaulting. However, they do not have an obligation to provide “free” healthcare. Spending trillions more on socialized healthcare programs only serves to bankrupt the entire nation and should be stopped by a responsible Congress. In fact, the US is so far in debt from egregious spending habits, that nearly all government programs, including entitlements, will need to be cut to prevent what now appears to be a certain default whether sooner or a bit later. If the Park Service continues to act in the present manner, I for one will be voting their entire existence to be defunded permanently and the parks turned over to the states and or private business to operate. After all, we are their bosses and they do work for us. It’s time we demand what is ours and mass on the parks and impeach President Obama for the abuse of power. The public…veterans, cops, truckers, students, tradesmen, factory workers, teachers, outdoor enthusiasts, tourists…all of us need to join together and crush this tyranny. In closing, Park Police, don’t be douche bags or we are going to fire all of you.
By Guiles Hendrik
October 8, 2013
All rights reserved.
Our readers are more than versed on the figurative collapse of the United States, but today it is important to look at the literal collapse of America. A key indicator of whether a nation is waxing or waning is the condition of its infrastructure. Specifically, is the infrastructure modern, maintained, robust, and operating efficiently or is it dated, failing, vulnerable, poorly maintained, and inefficient? When one assesses the condition of the US infrastructure, one finds a massively inefficient system that is becoming increasingly costly, breaking down, and in desperate need of repair and/or complete overhaul. Today we will specifically look at the condition of the US transportation sector, which is quite literally, collapsing.
On September 24th a major bridge in Wisconsin near Green Bay had a 400-foot section suddenly sag forcing police to close off the span that carries Interstate 43 over the Fox River some 120 feet below. The bridge carries over 40,000 vehicles a day and will be indefinitely closed. Perhaps even more disturbing is that the bridge was recently renovated and last inspected in August of 2012, when it was declared sound. If a recently inspected and renovated bridge that was deemed sound has failed, what does that say for the older bridges that haven’t been renovated and are already deemed at risk? The answers are dire and supported by the latest civil engineering research.
A US Senate report just released coincided with this latest bridge failure. The American Society of Civil Engineers (ASCE’s) 2013 Report Card for America’s Infrastructure graded the nation’s infrastructure a “D+” based on 16 categories and found that the nation needs to invest approximately $3.6 trillion by 2020 to maintain the national infrastructure in good condition. The following are the grades and the investment needs by 2020 for the surface transportation area:
o Bridges received a grade of C+;
o Transit received a D;
o Roads received a grade of D, and combined with bridges, and transit, have an
estimated investment need of $1.7 trillion; and
o Rail received a grade of C+ and has an estimated investment need of $100 billion.
Based on this, the US has to somehow find almost $4 trillion (estimates always go up, never down) in new revenue in what effectively amounts to five fiscal years (funding due in 2020 would need to be programmed no later than Fiscal Year 18 to pay out in Fiscal Year19). Further, to receive C and D ratings, the majority of our transportation infrastructure has to be at risk of failing. The bottom line is the money is not going to be appropriated because we don’t have it. Even if we did, the bureaucracy with its pork, inefficiency, and regulations won’t be able to put the money into effect. This means the repairs will not get done before 2020.
We can expect more and more major infrastructure failures across the nation as corrupt leadership and an overly burdensome bureaucracy continues to siphon off more and more money from the taxpayer. Instead of going directly to maintenance projects where it was earmarked to be spent, the money ends up going to welfare programs, campaign donors, and interest payments on the exponentially increasing state and national debts. None of these recipients add value to the society and will only contribute to the further deterioration of the infrastructure.
The huge problem with the infrastructure collapse is that it is not linear and it has ripple effects. By not linear I mean that failures do not occur along a nice even line that gradually increases or decreases as bureaucrats would like. Our collapse will resemble a more exponential trend similar to power grid failures where a small failure in the network cascades into a major grid failure. Specifically, as one piece of infrastructure fails, it places greater pressure on other parts of the network. This overstresses these nodes and causes them to wear out quicker and catastrophically fail long before their expected service life has occurred. This trend will occur faster than money can be raised and maintenance conducted. This accelerates the collapse of other nodes. Further, as key nodes in the infrastructure network begin to fail, it has a direct negative impact on local, regional, and national economic conditions. To offset the conditions, governments historically have opted to raise even more overly burdensome taxes on the few remaining productive citizens with jobs, which in turn actually reinforces the collapse cycle. In fact, as major hubs begin to fail, businesses begin to lose greater percentages of their revenue, which forces prices higher and causes shortages of goods and services. This reduces government revenues raised in the form of taxes and further reduces the amount of money available to be dedicated toward infrastructure maintenance. Raising taxes higher only further magnifies this problem and creates even worse economic conditions. This creates a viscous downward spiral that accelerates a nation toward total collapse.
Today we are caught in the downward spiral. It is not when or if it occurs. No ladies and gentlemen, we are in the midst of the collapse right now. There has been no economic recovery and only lies and fudged economic numbers. Even Wall Street, which has been booming, will face another even greater collapse when the Federal Reserve is finally forced to stop counterfeiting money, handing it for free to their banker allies, and then billing the taxpayer. Make no mistake, it won’t be your grandchildren that inherit this unimaginable debt as politicians tell you; it will be you. As such, you have two options. The first is to ignore reality and succumb to a new Dark Age and slavery. The masses have repeatedly done this throughout history when faced with a painful choice between immediate gratification or a tough, slow recovery that requires personal sacrifice. The second option is to awaken your mind and open your eyes to what is going on around you and take action. You few that choose the later will be in the minority. You will be persecuted, harassed, and potentially even jailed for taking a stand to right the wrongs, but you will be the few that always change history. Remember, it is never the masses that change history. You know the collapse is coming and can’t be stopped, but you can be prepared for it. Do all that you can in the time you have to prepare yourself, your family, and your community to rebuild. Don’t waste your precious little time trying to fix what amounts to the Titanic sinking for the ship is lost. No, be a Last Minute Survivor. Go and get in a life boat and start paddling while the others remain convinced the Titanic is unsinkable. You may still make it, but they will continue to dance until they drown. Good luck.
By Guiles Hendrik
All rights reserved.
We have said from the beginning that predicting the past is for amateurs and academics, but accurately predicting future events is for true professionals. Rather than pointing out that our previous articles have been spot on and proven out by recent events we will reach back to 2007. The following memo was written by one of analysts as a short brief for whoever became the staff for the next president back in 2008. We believe the accuracy of the predictions are a shocking testament to our accuracy. Not only were the effects of natural disasters like Hurricane Sandy predicted, but the housing collapse, economic recession, failing infrastructure and power grid, dysfunctional health care, and even forest fires being set by terrorists were accurately identified as problems the Obama Administration would face!
The following is an exact cut and paste without edit of the August 2007 memo:
Homeland Security Issues Facing the Next Administration
The security of the homeland will face an unprecedented list of complex challenges in the coming year. The next President can expect to inherit numerous lingering security issues as well as new and dire threats that will require fast and adaptive solutions. This paper identifies critical shortfalls in contingency planning regarding how overlapping effects of a crisis significantly increase the overall magnitude of the threat.
In short, a single limited crisis incident can usually be contained and reacted to. These type contingencies have been analyzed and prepared for in detail. Unfortunately, this one dimensional approach only identifies point of impact operations and does not deal with the much more catastrophic results of multiple overlapping incidents that occur whether by design or chance. These type scenarios could be deemed as “worst case” and will quickly overwhelm even the combined capabilities of regional emergency services. Even more frightening is the fact that not only can these events happen by chance, but a multi-dimensional attack can be planned and orchestrated by terrorists utilizing low technology and minimal coordination.
Historically speaking, a single incident of even massive magnitude such as a natural disaster, bombing, or economic crash has been recoverable. On the contrary, recovery against multiple disasters within a short time frame has crippled nations and brought about entire geopolitical shifts. This ripple effect can begin quietly in a realm such as economics, but when coupled with a terrorist attack and or a natural disaster, the effects are dramatically magnified. A real time sample vignette to illustrate this ripple effect could transpire as such:
Time: Labor Day Weekend 2007
Background: A downturn in housing has caused the economy to slide into a recession while the federal funding has already been strained to the limit by a still on-going war. Further, money to fund infrastructure modernization and repairs has been diverted to fund the war leaving bridges, damns, and power grids dangerously ill maintained. Record heat waves have caused droughts across the nation and set record demand for energy that has increasingly relied on gulf oil imports as a result of the war in the Middle East.
Situation: A Category 4 hurricane strikes the still recovering Gulf Coast turning the region into a flooded disaster zone. Further massive fires have been spreading across the dry drought stricken United States as small bands of terrorist cells initiate a low tech coordinated arson attack across the country.
Effects: Normal emergency response teams are paralyzed to act in the flooded hurricane effected regions as they have been over committed fighting massive forest fires that have now begun to spread into residential and urban areas. Due to power lines being damaged by fire, wind, and water and a high energy demand for cooling, power grids have begun to shut down leaving entire regions of the country without power. The combined effect sparks looting and riots further deteriorating the system. Martial law is declared, but implementation becomes difficult as forces are unavailable, not networked, and unable to span the massive scale of the crisis leading to a vulnerability culminating point.
The direct attack: Just as the nation is most vulnerable, a terrorist sleeper cell is activated to conduct an attack of mass effect. The results are catastrophic and will require years and perhaps decades for America to recover from.
Latent effects: General anarchy develops leading to a massive economic downturn. Further, failure of health care facilities and standing water from flooding leads to outbreaks of disease further exasperating the already critical situation.
The above vignette is not a doomsday prophecy, but rather a very realistic scenario that could play out in present time across the nation. DHS and the incoming administration must prepare the department for these ripple effect contingencies. Although much more difficult to prepare for, immediate actions must be taken to specifically address the potential for ripple attack style events like above to be initiated by terrorists seeking to asymmetrically cripple the United States.
As we further improve the security of our homeland, our enemies continue to adapt and find new ways to strike and the foundations of the United States. Based on this, the Department of Homeland Security must work in concert with the next administration to continue to invest in threat analysis that seeks to predict how terrorists will asymmetrically evolve and develop new and to date unseen tactics for offensive attacks. Recommended actions for DHS include war gaming the potential impact of different ripple chains, developing disaster drill scenarios that take the ripple effect into account, and developing a hardened and redundant logistics infrastructure that is reminiscent of the Cold War era. A premium must also be placed on unconventional creative thinking as well as the development of agile, adaptive, and networked plans that can be rapidly implemented.
August 31, 2007
No one has a crystal ball, but they myriad of events illustrated in this memo certainly have come to pass and are developing as of the writing of this post. We will continue to provide you visionary analysis with an unprecedented record of accuracy. We hope that our analysis will help you understand the daily events happening globally and how they will affect you. Armed with this knowledge you will be better able to make decisions critical to the protection of your life, liberty, and wealth.
See link for more information on arson as a terrorist weapon:
By Guiles Hendrik
All rights reserved
For years economists have warned of the time when international trade will begin decoupling from the U.S. Dollar as the world’s reserve currency. As the theory goes, the United States will face financial and economic collapse if the position of the dollar as the world’s reserve currency is undermined. In short, the U.S. can finance its massive debt because it can print its own money and nations will buy its debt. However, if the dollar was no longer the standard world currency for trade, the U.S. could not endlessly print money and sell its debt. The result would leave the U.S. with a choice between being unable to service payments on its debt or continue to print money and hyper inflate its currency to valueless. Both scenarios lead to financial and economic collapse. The U.S. would cease to exist as we know it if the theories prove true.
Until recently, these currency naysayers were slandered as alarmists or conspiracy theorists. However, their predictions have begun coming to pass at an accelerating rate. Already, the BRICS (Brazil, Russia, India, China, and South Africa) nations have formed a financial block that seeks to reduce and then remove the dollar as the standard currency for trade. Many other countries have bought into this transition to include key energy trading partners of the Gulf Cooperation Council such as Saudi Arabia, Kuwait, and the United Arab Emirates. Further, the world’s second and third largest economies (China and Japan respectively) have already dumped the dollar and began directly trading in their respective domestic currencies. Specifically, in December of 2011 China and Japan agreed to direct currency trading in an effort to explicitly limit the role of the dollar [http://www.nytimes.com/2011/12/27/business/global/china-and-japan-in-currency-agreement.html?_r=0].
As this trend away from the dollar has accelerated, even traditional “Western” allies have begun to buckle to the pressures of economic reality as the dollar continues its decline. The latest of these appears to be Australia, which just last week announced its intention to convert billions of dollars in trade with China to their own domestic currencies. In effect, now that China, Japan, and Australia are eliminating trade in the dollar, which sets the stage for effectively closing the dollar out of Asia.
Also this week, in support of the momentum away from the dollar, Brazilian Minister of Finance Guido Mantega (L) and Chinese Minister of Finance Lou Jiwei signed a memorandum of understanding between the Ministry of Finance of the Republic of Brazil and Ministry of Finance of the People’s Republic of China on Bilateral Cooperation in Macroeconomic, Fiscal and Financial Policies at the 5th BRICS Summit in Durban, March 26, 2013. The deal eliminates the dollar in about $100 billion in direct trade between the countries over the next three years and marks another milestone in the shift in international trade away from the U.S. dollar. Alarmingly, China has now replaced the U.S. as Brazil’s main trading partner with over $75 billion in annual business. Next up at the BRICS summit in Durban will be discussions to establish an international development bank to serve as a counter-balance to the World Bank and International Monetary Fund. All of this ultimately combines to decouple world markets from the dollar, which will undermine the U.S. strategically.
The fact is the world is dropping the dollar. The dollar has been all but destroyed by the policies of the Federal Reserve and massive U.S. deficit spending and debt. Regardless of what the likes of Tim Geithner or Ben Bernanke tell the American public, the rest of the world sees the US and European economies as terminally ill. The pace of decoupling will continue to accelerate as more and more trade is conducted without the dollar. This creates a catastrophic downward spiral of self-perpetuating collapse. As the dollar is weakened, more countries will stop using it, and as they stop using it, the dollar will become weaker. This trend then becomes a self-fulfilling currency disaster for the U.S.
The dire predictions of the “alarmists” are coming to pass. It still is not known if this decoupling will lead to the dollar’s disaster, but the fact that the move from the dollar was accurately predicted lends credit to the forecasters’ conclusions. Inflation has already affected every American at the grocery store and gas pump. A shopping cart of groceries now costs nearly $500 and a gallon of gas $4. Americans are at their breaking point. Sadly, this is just the beginning. It will get much worse as the value of the dollar continues to plummet and the cost of basic goods and services skyrocket. As Americans suffer and elitist bankers cash in on record profits, anger may finally boil over into the streets as it has across Europe. Any objective observer can see jobs are gone and not coming back and it’s only the elites that are getting richer while the remaining members of the middle class are bled dry with ever increasing taxes, costs, and premiums.
One does not need a crystal ball to see how this is likely to end and it isn’t pretty. Even if suddenly Congress and the President decided to act decisively, the U.S. economy and financial system is by many accounts too far gone to be salvaged without a complete collapse and restructuring. This means that greater pain for nearly all Americans waits in the near future. By pain, picture pensions robbed, savings accounts pilfered, entitlements cut, spending eliminated, services non-existent, infrastructure crumbling, and even higher unemployment…and this is the best case!
By Guiles Hendrik
President Obama’s much publicized “you didn’t build that” comment reveals much about the misguided and ill-informed logic of our senior political leaders. Implied in the statement is the notion that your job or business would have been impossible to obtain without direct government assistance. As a small business owner, combat veteran, and self-made man, I tend to take a bit of offense. I would go on to say the real point should be that it is amazing anyone is still able to build a thing in spite of the government, which from oppressive regulation and endless taxation, to not enforcing fair trading practices with foreign nations and cronyism, seems to have done everything in its power to prevent one from succeeding.
When it comes to business, nothing is better for a strong economy than developing and growing actual profitable businesses. This profoundly obvious reality is completely foreign to the career bureaucrats that believe only through social programs and endless website links can businesses be built. Perhaps if we just taxed you a few percentage points more and paid for thousands more government bureaucrats to teach you how to do a web search for “job seeking” we would all be better off? Not likely, unless you consider endless and unsustainable growth paid for by the private sector a healthy economic trend.
If one actually takes the time to really look at the massive number of loosely categorized government “jobs” programs and agencies, one will find no real programs that produce jobs. Mainly, the money being spent goes to big businesses or local and state governments that will then hand the money off again (after taking a cut) to other useless entities such as centers for helping someone look for a job that doesn’t exist. I am particularly fond of my tax dollars going to fund ever growing armies of social workers to repeatedly attempt and fail to provide job training to felons on welfare that never had a job nor intend to since they are already collecting unemployment, Medicaid, Social Security, and various other forms of welfare and food stamps when not living in publicly funded prisons or housing. In fact, a detailed review of government “jobs” programs reveals the only thing you will find is an endless chain of bureaucrats creating more bureaucratic positions at the taxpayers’ expense. What is really occurring, it appears, is that you are taxed at incredibly high rates so that the government can fund an infinite number of useless, feel good programs that purportedly are there to help you. When these don’t work, the answer is to tax you more and create even more useless and bureaucratic programs that “talk” about job creation, but never actually accomplish it.
The game is rigged people! First, the government takes your money by force via the IRS. If you don’t believe the money is being taken by force, try not paying your taxes and let me know how that goes. Next, the money stolen from you is used to fund hundreds of useless bureaus, agencies, and boards that claim to “help” you find a job or build a business. These agencies then demand mountains of paperwork and approvals that all combine to employ thousands more useless bureaucrats so that you can apply to have them give you your money back with interest in what they call a “business loan.” Of course if you have somehow managed to acquire any real property by this point in life, the government will make you risk it as collateral so that it can minimize its risk when loaning your “your money” back. This is big money for the government and it actually profits from loaning you your own money. This is why when it comes to jobs programs, be it the Department of Veterans Affairs, the Small Business Bureau, the Department of Labor, or your state and local economic development boards, they all seem to want to give you loans.
The fact is, that whenever money is directly provided for economic development, it is not provided for starting a business, but rather, it is used to fund more government programs designed to sound good. However, these programs fail to create a single non-government job. Sometimes though, the money will be earmarked for a big utility to cover the costs of renovating its facilities all while still billing the consumer for “needed upgrades.” Other times it is earmarked for local governments and small businesses to purchase obsolete, inefficient, or overpriced services and equipment no one would ever purchase if subjected to a true fair market. This is the essence of crony capitalism. The point is that none of this money is actually going to create businesses. Say what you may about communist China, but at least when the government gets involved, it funds actual hard industry and businesses that do employ people!
Sometimes it is easiest to define what a government program does by defining what it doesn’t do. This may be the case for the host of government “jobs” programs. What you won’t see from a government jobs program is a single government program that will give you a grant to actually start a business. That is unless you are a friend of the President and operate a completely fraudulent company producing nothing functional, but maintain a catchy eco-friendly name and allegedly produce “green” alternative energy products. That may not be a totally inclusive statement though so one must also include union bailouts at the expense of taxpayers in right to work states. That said, this is disastrous for American competitiveness and a healthy free market. Disagree this is the case? I urge you to go to the Department of Veterans Affairs website and see for yourself. In plain English, in their words, on their deceptively named “VetBiz” webpage will tell you:
“Grants are a form of funding for specific federal research and social programs. Contrary to popular belief, there are no Federal grants made specifically for the purpose of starting a business.”
I couldn’t have stated the absurd reality and waste of government funds more honestly and to the point. You can read this under the grants paragraph at http://www.va.gov/osdbu/veteran/vepFunding.asp
If not a big enough waste, the VA also likes to add insult to injury. Under “Education Benefits” it notes it will only pay for programs offered by government run Small Business Development Centers even if they are absurd, useless, and not at all what one may need to be competitive or gainfully employed in today’s market. The “excellent” careers veterans can look forward to being trained for are a barber/beautician, HVAC repairman, and a truck driver. Wow, I wonder if I can also aspire to be a janitor! This isn’t meant to disparage anyone performing these jobs, but only to point out the degree to which the government believes veterans are capable of performing. A more reasonable person might suggest that a computer scientist, electronics engineer, or hedge fund manager might be a more challenging and profitable career path for veterans, but apparently the government sees those that served and protected our nation as the few, the proud, the minimum wage workers.
The point ladies and gentlemen is to reiterate that the government cannot and does not produce jobs. At best, it can only create more bureaucracy that stifles jobs and destroys a healthy economy. In fact, government should completely remove itself from this farce that by any reasonable estimate is costing taxpayers with actual jobs billions and providing a negative net return. No Mr. Obama, we did not build this worthless bureaucratic nightmare, you did. Now please, “Mr. #Ineverhadarealjobinmylife,” stay out of the way and allow those with actual skills, motivation, and experience to get back to what we know best, creating real jobs!
At first it might be hard to decide what candidate for president to believe, but the answer in truth is easy. NEITHER. Both have been part of the lies and corruption too long to provide any real positive substance to the debate. Beyond more of the same political spin on old failed policies, you will hear no new ideas, many excuses, lots of finger pointing, and most importantly, no real strategy that departs from the failings of at least the last 11+ years.
For almost four years President Obama has continued many of the Bush-era policies while adding his own flavor of failure. Libya is just one of the most recent examples of an Obama owned foreign policy disaster as the return of four dead Americans can attest. By arming and supporting known jihadists, he set the stage for greater bloodshed throughout Africa and the Middle East. Even worse, Obama also quietly sold American sovereignty down the river to push an internationalist agenda. By allowing the United Nations Security Council and not Congress to be the single authoritative body to send Americans to war and placing Americans under foreign command without objection, Obama intentionally set a new precedent in international law that further erodes American sovereignty. Obama just recently was stating how Al Qaeda was decimated, but unfortunately for him and his propaganda machine, reality reared its ugly head all across North Africa, the Middle East, and South Asia. To illustrate his colossal failure in the Middle East and beyond it is worthwhile to highlight some key events from just a couple short weeks in September. During this very short timeframe a US diplomatic motorcade was blown to pieces in Peshawar, Pakistan wounding an American diplomat, four Americans to include an Ambassador were assassinated in Libya, numerous NATO forces were killed and wounded in Afghanistan by “friendly” troops and the Taliban, our embassies and consulates were attacked and torched in countries like Egypt and Sudan, Syria continued to deteriorate, and bomb blasts ripped through Iraq to name just SOME of the major events that affected Americans. Moving beyond our unending wars with Islam, Japan and China moved closer to war, Russia reinforced units with elite combat troops on the border with Georgia, North Korea threatened America and South Korea with a nuclear attack, and the Fukushima Nuclear Power Plant continued to release massive amounts of radiation…again, to just identify a few highlights. On the economic front a near imminent disaster is facing Europe that will certainly collapse the global economy and take the US down with it. Further, the US debt has spiraled past 16 Trillion and is picking up speed with no end or even cuts in sight for spending. The true magnitude of the impending economic disaster will only be seen after the election and the temporary Band-Aids placed on the world economy to support President Obama’s re-election fall away. No Mr. President, Al Qaeda is not on the run, we are. No Mr. President, the world is not safer. No Mr. President, our debt and spending have not decreased. No Mr. President, our economy has not recovered. No Mr. President, you do not deserve another term!
As for Romney, this is a man with no foreign policy credentials. He is the man who somehow managed to already offend even the British before he was in the U.K. for a day. This is a man who has already kissed the ring of Netanyahu and sworn allegiance to a foreign power in exchange for political support. This is a man who thinks the policy era of George Bush was a success and should be brought back. So much so, his advisors and potential appointees are all Bush-era retreads reshuffled. To think America would allow Bush-era policy “experts” back into the White House after what we already lived through and expect anything to improve is simply beyond comprehension and must be put squarely in the court of idiocy. In respect to Romney’s stated Middle East policy, war mongering would be an understatement. Even though Romney is nothing more than a well-endowed draft dodger, he apparently thinks nothing of putting your sons and daughters lives in danger as he plots an even more disastrous round of wars with Syria and Iran for Israel’s security. I guess he didn’t get the memo regarding how “well” the wars in Afghanistan and Iraq went. Nonetheless, he seems to think he can start a war with Iran and that somehow will benefit America although I would challenge him to justify this argument in the upcoming debates. Further, he somehow believes that by giving more tax dollars to the incredibly over funded Department of Defense and starting a war with Iran he can simultaneously balance the budget. In one of the rare cases of Bill Clinton being right, Romney’s numbers just don’t add up. As a purported businessman, Romney must know this flaw in his arithmetic so it is fair to conclude he is stupid or lying to the public. Beyond the Middle East, Romney has also managed to pick a premature fight with Russia and risks restarting the Cold War. If Romney can’t even understand the consequences of wars in the Middle East, he is woefully unprepared to take on the likes of Russia and China in strategic policy.
America, your candidates chosen for you by the elites will not return peace and prosperity as they claim. Instead, you will get greater debt, a worse economy, unending bloody and costly wars, and further destruction of your freedom and liberties at home. We have seen both parties’ policies and they are abject failures, ignore the rule of law, and trash the Constitution. Neither is acceptable. Only by ditching the two very unqualified candidates and their establishment parties en masse can America hope to avert total disaster during the next four years. The Democrats and Republicans do not represent your best interests unless of course you are an extremely wealthy donor, financial institution, or mega corporation. Whether you disagree or agree, you, the citizens of the United States of America, will get the government you collectively deserve come November so choose wisely.
Below are links to a few recent articles illustrating the US strategic failure in Afghanistan:
President Obama recently announced his desire to dust off plans for tapping the United States’ Strategic Petroleum Reserves. This is the latest in a series of actions by the Administration suggesting the U.S. is quietly preparing for a war with Iran in the near future. Further, this closely held knowledge is a tell-tale indicator that senior U.S. planners expect a war with Iran to disrupt oil supplies. As such, Americans should prepare to see gas prices easily double and rationing as early as this fall if Israel is not prevented from attacking. Prepare now.
The Obama Administration suggested this move was to help bring the gas prices down and counter heavy speculation on the futures market. The problem is this explanation fails to neither make sense nor justify its use. Tapping the reserves will have only minimal impact on prices and the U.S. will ultimately need to replenish the used petroleum so the purchasing of petroleum by the U.S. will actually show no net change. Granted, the cost of gasoline in the U.S. is at oppressive levels, but has been for years now without any need to draw from strategic reserves. If this was effective, it could have been done years ago.
Others have suggested political motives stating Obama wanted to lower gas prices before the election and to help the economy, but for the already aforementioned reasons, this at best, would be limited and short-term. At current consumption rates for imported petroleum, U.S. reserves would barely last two months. However, even that is misleading because the maximum withdrawal capacity is only around 4.4 million barrels per day…roughly a fifth of what the U.S. uses per day in unrefined capacity. Production is currently above demand so additional reserves being added to the already abundant oil market will again do little. Further, U.S. refineries already operate at peak capacity so the “extra” oil would go nowhere. If this was actually a feasible plan for jump starting the economy, why didn’t Obama do this long ago?
Finally, some Administration insiders have leaked that this was in fact a way to drive down increased oil prices to hurt Iran. Since additional sanctions went into place on July 1st against Iran, oil prices have climbed due in part to approximately 1 million barrels per day of oil being taken off the market. However, Iran has still found markets, as we predicted and is actually enjoying increased revenue from the price spike. If the U.S. was serious about sanctioning Iran, they would not have given exemptions to nearly every country, such as China and Japan, that were already importing Iranian oil. Considering that the markets had over a year ago priced in this event, the Saudis have increased production, and the U.S. has a surplus of oil, as identified above, this explanation too fails to justify tapping the reserves.
In reality, the Obama Administration is “dusting off” plans to draw on the strategic reserves because they are expecting disruptions to oil supplies in the near future. The strategic reserves serve one purpose. This purpose is to provide essential petroleum to refineries to support critical U.S. infrastructure including power generation plants, key industry, heating, and transportation. Oh, and the military is who gets first dibs! This is only done to supplement imports during emergency situations such as war or natural disaster. The last two uses were to supplement production knocked offline by Hurricane Katrina and the temporary loss of Libyan production during the height of its civil war.
The major disruption that the U.S. is getting ready for without setting off alarms is an attack on Iran. The U.S. knows that even in the best of outcomes, a military strike on Iran will spike fuel costs and cause at least a temporary disruption in global oil supplies. At worst, production throughout the entire Gulf region could be destroyed and the world would face a chain of catastrophic events beginning with a massive price spike and shortages. Further, the U.S. (taxpayer) most likely is going to get stuck with resupplying Israel with oil as it has previously done when oil to Israel has been cut off due to its wars. Either way, it is a prudent move for any commander about to attack a country with one of the largest reserves of oil to be ready for supplies to be shut off. A war is the single reasonable answer to this so be forewarned.