Friday, July 23, 2021

Joe Biden Has Given Vladimir Putin a Huge Win on the Nord Stream 2 Pipeline

We spend billions annually protecting Germany from Russia,
while Germany funnels billions annually into Putin's banks.


For years, Democrats and their cable news echo chamber conjured up and broadly disseminated the most lurid and patently ludicrous rumors about former President Donald Trump being a corrupted and (literally) compromised agent of Vladimir Putin and the Kremlin. Democratic talking heads ultimately tried in vain to distance themselves from this sordid oeuvre‘s most far-fetched talking points, such as the infamous “pee video kompromat” from the discredited Steele dossier. But for four years, Democrats’ unquenchable obsession with the “Russiagate” hoax pervaded, distorted and sullied our politics.

The irony is that Trump, on actual substantive merits, toed a very hawkish line on the Russian Federation. He shored up missile defense in Central and Eastern Europe, which the Obama Administration had undermined as part of its ill-fated Russian “reset.” He repeatedly stood strong with America’s ex-Iron Curtain allies, delivering a powerful, Reaganesque 2017 foreign policy speech in Warsaw that was aimed squarely at Moscow. He unilaterally withdrew the United States from certain bilateral and multilateral accordssuch as the Intermediate-Range Nuclear Forces Treatythat buttressed Russia due to the simple fact that it did not comply and America did.

Trump also adamantly opposed and issued strong sanctions to try to prevent the construction of the Nord Stream 2 pipeline, a nearly completed, but stalled, 764-mile natural gas pipeline connecting Russia with Germany via the Baltic Sea. Nord Stream 2 was, and remains, an indispensable tool by which Putin and Russia can deploy energy and economic leverage over the European continent, permitting the Kremlin to both crowd out ascendant American natural gas exports and dangle energy sufficiency as a “sword of Damocles” hovering over vulnerable European heads.

On Wednesday, roughly a week after German Chancellor Angela Merkel left Washington, D.C., the United States and Germany issued a joint statement signing off on the completion of Nord Stream 2. The Biden Administration’s approval of Nord Stream 2 marks the culmination of a stunning about-face. Biden himself has often called Putin a “KGB thug.” White House Press Secretary Jen Psaki asserted just last month that the administration “continues to believe that Nord Stream 2 is a bad deal for Europe.” State Department Spokesman Ned Price on Tuesdayjust one day before the Biden/Merkel joint statementblasted the pipeline as a “Kremlin geopolitical project that is intended to expand Russia’s influence over Europe’s energy resources and to circumvent Ukraine.”

Merkel undoubtedly is happy with this outcome, and there is no one happier than Putin himself. But America’s core Central and Eastern European allies, such as the Visegrad Group nations of Poland, Hungary, Czech Republic, and Slovakia, undoubtedly are livid at what they rightly view as a destructive and self-defeating kowtow to Moscow and Berlin. In May, I interviewed Polish Prime Minister Mateusz Morawiecki in Warsaw for Newsweek, and there was perhaps no issue on which he was more passionate than he was on the correctness of Trump’s unwavering anti-Nord Stream 2 stance and the wrongness of Biden’s gratuitous flip-flop. Even more important, the deal hurts U.S. natural gas exporters, effectively depriving them of access to the key European market. Astoundingly, Biden’s greenlighting of the Nord Stream 2 pipeline comes on the heels of his lamentable decision to revoke the permit for the Keystone XL pipeline here at home.

What could possibly explain such bizarre and counterproductive behavior? On the rhetorical front, Bidennow tottering in his political dotageis not exactly known as a paragon of lucidity. And if a recent Politico report on Vice President Kamala Harris’ hellish office is any indication, the Biden Administration more generally is a disjointed and fractious mess. In terms of selling out domestic natural gas producers and exporterswell, Biden and his political party have never much cared for them anyway.

But the clearest reason for Biden’s move is his desire to appease Merkel and give Germany a major and visible geopolitical win. Germany is the most powerful European Union member state and exercises outsize influence over the continent’s economic and political affairs. The EU may be headquartered in Brussels, but Berlin is the crown jewel of the European integration project and the indispensable bulwark, in the aftermath of the U.K.’s successful Brexit, against the centrifugal threat of greater Euroskepticism. If one wishesas does the modern globalist Left, and as does the modern Democratic Party that is very much a part of that globalist Leftto fortify the EU and preserve its status as an iconic transnational institution, then signing off on Nord Stream 2 makes a great deal of sense. Liberal regimes such as Germany and Belgium win, whereas nationalist regimes such as Poland and Hungary lose.

The United States, of course, also loses. As does Democrats’ feigned and disingenuous moral high ground as a corrective counterweight to Trump’s purported pro-Russia dovishness.


The Totally, Utterly Irrefutable Case Against Socialism

 

Article by Lee Edwards, PhD. for The Heritage Foundation

(This piece originally appeared in The Daily Signal)


The Totally, Utterly Irrefutable Case Against Socialism

When a dozen of conservatism’s best minds take on Socialism and expose it for the utopian fraud it is, attention must be paid.

In a brief foreword to a special issue of National Review, Editor-in-Chief Richard Lowry admitted that many conservatives thought socialism in America had been “vanquished” after the collapse of Soviet Communism 30 years ago. But as T. S. Eliot insisted, “There is no such thing as a Lost Cause because there is no such thing as a Gained Cause.”

The experts examine socialism in its many guises, beginning with Charles Cooke’s blunt assessment that socialism is not and never can be “democratic.”

Cooke, the editor of NationalReview.com, writes that voters should not be fooled by the left’s attempt at rebranding. 

“There is no sense in which socialism can be made compatible with democracy as it is understood in the West.” At worst, says Cooke, “socialism eats democracy, and is swiftly transmuted into tyranny.” At best, socialism “stamps out individual agency, places civil society into a straitjacket of uniform size, and turns representative government into a chimera.”

Cooke’s description of socialism as tyrannical was confirmed by Ugo Okere, a socialist candidate for the Chicago City Council, who explained that “democratic socialism, to me, is about democratic control of every single facet of our life.” 

That would mean, presumably, rewriting the first words of the Constitution to something like, “We the people of the United States in order to form a more democratically controlled Union … ”

What has Okere’s “democratic control” produced in the socialist “paradise” of Venezuela? 

Ricardo Hausmann, the former chief economist of the Inter-American Development Bank, has written that “Venezuela’s economic catastrophe dwarfs any in the history of the U.S., Western Europe or the rest of Latin America.” 

How catastrophic? Under Chavez-Maduro socialism, the child mortality rate has increased 140%. Ninety percent of Venezuelans now live in poverty. This year inflation will hit an unbelievable 10 million percent. (That is not a typographical error.) All this in a country with the world’s largest proven oil reserves—far greater than those of the United States.

Cooke concludes his essay with lessons learned from 6,000 years of civilization, including “never relinquish the right to free speech, the right to free conscience, the right to freedom of religion, the right to bear arms, or the right to a jury trial.” 

Whatever you do, he warns, don’t be seduced by socialists bearing promises. But if you are seduced, “get out before it’s too late. You have nothing to lose but your chains.”

The distinguished author Joshua Muravchik, a fellow at the World Affairs Institute, takes a historical approach to the myths of socialism. 

He writes that the initiator of Soviet terror, tyranny, and violence was its founding father, Vladimir Lenin, who exhorted his followers to exert “merciless mass terror against kulaks, priests, and White Guards; persons of doubtful standing should be locked up in concentration camps” (i.e., the Gulag). 

To what end? Not just to accumulate political power, but in pursuit of a sacred mission—a socialist world.

When the farmers resisted collectivization, Lenin’s successor, Josef Stalin, engineered a famine in which at least 5 million and perhaps as many 10 million starved to death—the Holodomor. 

If Stalin was “a tyrant of stupefying brutality,” writes Muravchik, he was outdone by Communist rulers Mao Zedong, whose Cultural Revolution resulted in at least one million deaths, and Pol Pot, who wiped out one-fourth of Cambodia’s population in his attempt to emulate Mao. 

Why did they kill so many? Muravchik provides the answer: “It was their devotion to an ideal [socialism] that prompted them to slaughter millions of unresisting innocents.”

Economist Jeffrey Tucker begins with the damning comment: “Among the most conspicuous of socialism’s failings is its capacity to generate vast shortages of things essential for life.” 

In Maoist China, he points out, there was no meat and no fat in which to cook anything. In Bolshevik Russia, there was never enough housing or food, not even loaves of bread.

What happened when Nikita Khrushchev took over as Soviet leader following Stalin’s death in 1953? He and his colleagues tried desperately to “cobble together” a system of planning that made sense without relying on “bourgeois” market forces. 

They failed miserably. In Tucker’s words, Khrushchev “spent his last years as a discredited, dejected, and sad old man on a park bench.”

If you love deprivation, constriction, and general limits on material aspirations, says Tucker, plus a “tyrannical ruling class that oppresses everyone else, you will love what socialism can and does achieve.” Indeed, he concludes, “misery seems to be its only contribution to economic history.”

Socialists, says National Review correspondent Kevin Williamson, are guilty of a fatal conceit: They think they can develop a system so powerful that it can consider every variable in society and propose scientific answers “about how many acres of potatoes to plant, and when and where to plant them.” 

But free-market economists Ludwig von Mises and F. A. Hayek (a Nobel Laureate) showed that “complete knowledge was not attainable on social, economic, or political questions.”

Therefore, says Williamson, the more intelligent and non-ideological governments have largely given up on central planning. 

Even the Nordic social democracies, so dear to the self-styled socialists of the United States, “mostly have been divesting themselves of state enterprises.” 

Reasonably successful state-run enterprises, such as the Swiss railroads, “have been converted into stock corporations or reformed in other market-oriented ways.”

The subtitle of Hayek’s last work “The Fatal Conceit” is “The Errors of Socialism.” Sen. Bernie Sanders, I-Vt., and Rep. Alexandria Ocasio-Cortez, D-N.Y., have failed to learn from those errors, says Williamson, asserting that “you cannot call yourself the party of science and the party of socialism too. You have to choose one or the other.”

Socialists flaunt their compassion, argues former National Review Editor-in-Chief John O’Sullivan, because it gives them an excuse to impose their will on others “unlawfully and even murderously.” 

Modern socialists tend to disapprove of placing conditions on aid to the poor—“workfare”—viewing the receipt of aid as “an unqualified right.” 

That sounds generous, says O’Sullivan, but it traps the poor “in long term dependency” and undermines what the scholar Shirley Letwin calls the “vigorous virtues” among their neighbors.

Before a single socialist regime had established itself, says O’Sullivan, 19th-century writers like Fyodor Dostoevsky, W. H. Matlock, and Rudyard Kipling saw “the horrors that lay concealed within socialism’s humanitarian promise.” Their examination of country after country refutes the fraying excuse that socialism has never been tried. 

In the later stages of Soviet Communism, for example, a woman would sell herself for a pair of jeans; in Venezuela today, “people exchange family heirlooms for a little food.”

Although the French welfare state is often offered as a shining example of progressivism, Pascal-Emmanuel Gobry, a fellow at the Ethics and Public Policy Center, declares you must look at “actual France, not the fantasy France of progressive propaganda.” 

He challenges the French elite who believe they have the right “to order society for the benefit of everyone.” 

Given the results of their leadership—low growth, mass unemployment, social strife, and a general mood of pessimism—Gobry suggests that “they might want to rethink their idea of progress.”

BT (Before Thatcher), the Great Britain of the 1970s was generally described as “the sick man of Europe,” due to its prolonged experiments with statism and the pervasive stagnation they produced. 

In 1960, according to historian Andrew Stuttaford, the U.K. boasted Europe’s most productive economy, but that was before the Labour Party came to power and nationalized almost every industry in sight.

The mid-1970s were hard on most Western economies, but the U.K. “appeared to be in a hell of its own,” says Stuttaford. Inflation shot up 300%. Gross domestic product fell, unemployment rose, the pound crumbled, industry buckled, “and some of Britain’s best and brightest headed for the exit.”

The winter of 1978 was characterized by grotesque images—the dead unburied, the sick untreated, the trash piling up in the streets. 

Just months later, promising radical change, Margaret Thatcher walked into 10 Downing Street and proceeded to denationalize coal, steel, and utilities; bring down inflation; spur economic growth; and refuse to give into organized labor’s draconian demands. 

Her message: “The problem with socialism is that you eventually run out of other people’s money.”

Markets, not bureaucrats, are better for the environment, asserts Shawn Regan, a fellow at the Property and Environment Research Center, pointing out that Eastern Europe and the Soviet Union “were the most polluted and degraded places on earth.” 

He quotes the economist Murray Feshbach and journalist Alfred Friendly Jr. as writing that when historians conduct an autopsy of Soviet Communism, “they may reach the verdict of death by ecocide.”

Closer to home, says Regan, the attempts of Cuban socialists to maximize production at all costs “has caused extensive air, soil, and water pollution.” 

In Venezuela, socialist policies have contaminated drinking water supplies, fueled rampant deforestation, and caused frequent oil spills. The principal guilty party is the state-owned energy company. 

Rarely, if ever, will Ocasio-Cortez and other sponsors of the Green New Deal concede the painful truth about socialism’s dismal environmental legacy.

Imagine a shoe store with just one brand of sneakers—now apply that to medical care. So begins journalist and health care expert Avik Roy, who explains the pluses and minuses of the British National Health Service, so beloved by Sanders and other American “democratic” socialists.

Because the British health system is funded entirely by taxes and is “free” to patients, there are no premiums, no co-pays, no deductibles. 

How then does the system prevent excess consumption and control costs? 

Roy says there are two principal ways: first, by controlling the fees that doctors, hospitals, drug companies, etc. receive; and second, by “aggressively restricting the … costly services that would otherwise blow up” the health care budget.

Notwithstanding Sanders’ contrary opinion, says Roy, “the NHS is no paradise.” 

NHS doctors “routinely” conceal from patients information about new therapies the service does not pay for, so as not to “distress, upset or confuse them.” 

Terminally ill patients are “incorrectly classified” as close to death to allow the withdrawal of expensive life support. Most NHS patients expect to wait five months for a hip operation or knee surgery, says Roy, but the actual waiting times are worse: 11 months for hips and 12 months for knees, compared with a wait of three to four weeks for such procedures in the United States.

NHS problems like limitations on access to care and dishonest statistics “will be familiar to those enrolled in America’s homegrown version of socialized medicine: the Veterans Health Administration.” 

Understandably, writes Roy, American socialists are not calling for “VA care for all” but for “Medicare for All.” 

Medicare features like subsidized premiums and unlimited access, says Roy, make the program popular with seniors who receive about $3 in benefits for every dollar they pay into Medicare. But the lack of controls has turned the program into an “oppressive fiscal burden.” 

According to the trustees, the Medicare hospital trust fund will run out of money in 2026, less than a decade away. The ultimate price tag of Medicare for All is an incomprehensible $30 trillion.

The solution may be debatable (The Heritage Foundation, for example, favors block grants to the states and health savings accounts), but the answer is not “the Anglo-Canadian version of socialized medicine that tramples on individuals’ rights to seek the care and coverage that they want.”

The real reason why American socialists are 24/7 news, says Washington Examiner editor Timothy Carney, is the widespread “social and cultural poverty” in America. 

The root cause of both Occupy Wall Street and Bernie 2016 was a “prevailing sense of alienation.” Young people, Carney says, “felt that they lost the ability to make a difference in the world.” They were a vacuum waiting to be filled.

Modern American society “in which community is weaker and people are more alienated,” says Carney, has proven a fertile ground for socialism. The political reaction from socialists and their fellow travelers is “a demand for a bigger federal safety net.” 

Carney reports, for example, that the People’s Policy Project, a socialist think tank, calls for a raft of federal programs, including 36 weeks of federally funded paid parental leave, federally funded child care, a federal benefit for stay-at-home mothers, and federally funded pre-K.

The conservative response, Carney argues, should be “community.” That is, an extended family, neighbors, parishes, shuls, civic associations, dinner clubs, swim clubs, and all the other communal variations. 

Such institutions—Edmund Burke’s “little platoons”—help families stay together, mothers and fathers “stay sane,” and new parents “navigate the daunting path of parenthood.”

Carney warns that the less we’re connected to one another via community institutions, and the more isolated we are, the more we grasp for something big to protect us. “For young Americans that’s often the state.”

Socialism is not only or even principally an economic doctrine, concludes the British author Theodore Dalrymple, “it is a revolt against human nature.” It refuses to believe that man is a fallen creature and seeks to improve him “by making all equal one to another.” 

The development of the New Man was and is the goal of all Communist tyrannies, beginning with the Soviet Union. 

Notwithstanding the disastrous results when such futile dreams are taken seriously by ruthless men in power, Dalrymple says, there are those who will continue to dream of “a life so perfectly organized that everyone will be happy.”

National Review’s analysts believe that such dreams will inevitably become nightmares as they have in the 40 some nations that suffered under socialism. 

The record of failure without exception is clear. It remains for conservatives to expose the impossible promises of the socialists, drawing on the conclusions of National Review’s experts:

  • Socialism is not compatible with the Constitution.
  • Socialism, the idea that millions killed for, is a mirage.
  • Socialism is very good at generating vast shortages of the essential things in life.
  • Socialism can never know enough to plan all our lives every day.
  • Socialism tries to make all of us equal to one another.
  • Socialism is very good at promising all the benefits we’ll never see.
  • Socialism in Great Britain had one outstanding success—Margaret Thatcher.
  • Socialism was responsible for making Eastern Europe and the Soviet Union the most polluted and degraded places on earth.
  • Socialized medicine as practiced in Great Britain and Canada is bad for people’s health.
  • American socialism is on the rise because of widespread social and cultural poverty in America.

What is to be done? It rests with you and me. We must get to work exposing socialism for the fraud and failure it is and taking back our culture and our country.

 

https://www.heritage.org/conservatism/commentary/the-totally-utterly-irrefutable-case-against-socialism 

 



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A Primer on Inflation


 

Article by James A. Dorn in Cato Institute's "Cato at Liberty"


A Primer on Inflation

Everyone is talking about inflation, but what is it? Why does it matter? What causes it? And what can the Federal Reserve do about it? This primer will address those questions with the goal of improving the public’s understanding of inflation and the role of the central bank.

What Is Inflation?

Inflation is best described as a persistent rise in the general level of prices. It is not enough for only the price of used cars to increase over time, or even all prices across the entire economy to increase just once. The rise must be both persistent and general.

The difficulty in discerning an increase in the relative price of a good from an increase in the general price level has been a common source of confusion. For example, during the pandemic and lockdown, the supply of computer chips used in cars declined, which delayed the production of new cars. With nowhere else to turn, consumers flocked to used cars, which led to much higher prices. Market demand and supply conditions are changing all the time: some prices rise and some fall, but an increase in the price of a lone good, or even several, is not enough to suggest inflation is at work.

Why Does Inflation Matter?

Inflation decreases the purchasing power of money. Each dollar is worth less because goods and services are, in general, more expensive. Even a low rate of inflation, if persistent, can have a significant impact on the long-run purchasing power of money. For example, inflation of 2 percent per year, if sustained, doubles the price level every 35 years. So a dollar would lose half of its purchasing power.

Debtors and creditors both suffer during prolonged inflation due to a loss of purchasing power. However, debtors are relatively better off, assuming that contracts and interest rates aren’t adjusted for inflation. For example, if someone took out a fixed rate, 30-year mortgage at 2 percent and inflation turned out to be 3 percent over the life of the mortgage, the debtor (borrower) would end up paying a real interest rate of negative 1 percent. That’s a good deal for the debtor, but not for the creditor (lender).

If inflation is high and variable, it can distort market prices, including the price of credit (i.e., the interest rate). Resources will be misallocated; uncertainty about the future value of money will make rational investment decisions more difficult. The stagflation of the 1970s and early 1980s, when the United States suffered from both high inflation and unemployment, provides evidence that easy money and inflation are not conducive to economic growth and prosperity.

What Causes Inflation?

Inflation has most often been caused by excessive increases in the money supply, but it’s not as simple as it sounds. The relationship between the quantity of money and the general level of prices is not 1-for-1 and the timing of changes is often subject to long and variable lags. And to complicate matters further, today’s Federal Reserve doesn’t pay much attention to the money supply. Most of the attention is given to interest rates—in particular, how the Fed’s large-scale asset purchases, also known as quantitative easing (QE), and forward guidance will affect longer-run interest rates. But that wasn’t always the case.

Clark Warburton, writing in 1947, warned about “upside-down monetary policy,” by which he meant a focus on regulating interest rates rather than controlling the quantity of money as the primary purpose of the Fed. According to Warburton:

Interest-rate regulation came into vogue as the chief instrument, and later as the objective, of monetary policy. The latter was a fatal error—for it turned the quantity-of-money interest-rate relationship upside down. Central banks tried to use variations in the interest rate both as a technique and as a guide for the provision of a suitable quantity of money in the economy, whereas they should have used provision of a suitable quantity of money as a technique for achieving price-level stability and freedom of the rate of interest.

Likewise, Milton Friedman emphasized that “inflation is always and everywhere a monetary phenomenon” caused by an excess supply of money relative to the demand for real cash balances. He understood that a decline in the supply of particular goods and services can temporarily increase the price level, as measured by the consumer price index (CPI). However, if there is no change in the quantity of money, or the quantity of money grows at a slower rate than real income (output), then the general level of prices cannot persistently increase.

For a given level of output in the economy and a given turnover rate of money (velocity), increases in the money supply eventually show up in increases in the price level. History has shown that rapid increases in the money supply, which outpace growth in real output, lead people to expect higher prices. Individuals and businesses will then reduce their cash balances, the velocity of money will increase, and inflation will accelerate.

In fact, governments themselves often initiate inflationary episodes when they try to finance excess spending by having the central bank monetize the debt. In other words, fiscal policymakers use the central bank to provide funding via expansionary monetary policy rather than raise taxes or sell debt to the public. That route to inflation is called “fiscal dominance.”

Today, the Federal Reserve is buying up a large share of newly issued government debt to finance bulging deficits, but inflation is still not far above the Fed’s long-run target of 2 percent. How is that possible?

The primary reason is that the Fed’s post-2008 operating system allows the central bank to pay interest on reserves (IOR). If that rate is higher than the risk-adjusted return banks could get elsewhere, and if banks are required to hold reserves as part of their capital buffer, then they will have an incentive to park reserves at the Fed rather than lend them out. Consequently, when the Fed buys assets in the open market, and creates reserves in the process, the normal multiplier effect on the money supply will be diluted, along with the impact on prices and nominal income.

The breakdown of the usual multiplier also occurs when interest rates hit the so-called zero lower bound (i.e., when nominal rates approach zero), as has been the case both in 2009 and recently.

What Can the Federal Reserve Do About Inflation?

The Federal Reserve Act (Section 2A) mandates that the Fed maintain long-run price stability and foster maximum employment. Here’s the exact wording:

The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.

In 2012, the Fed adopted an inflation target of 2 percent, but inflation has been consistently below that target since its adoption. To make up for the shortfalls, the Fed implemented “flexible average inflation targeting” (FAIT) in August 2020. The idea is to let inflation exceed 2 percent for some time until the average returns to 2 percent—though, the exact starting and ending points are unclear. However, there is a risk. If the Fed lets inflation run too hot for too long, confidence in the dollar as a stable-valued currency will erode and the Fed’s credibility will suffer.

It should be noted that under the Fed’s current operating system, known as the “floor system,” QE never has to be reversed to keep inflation under control. It suffices, as the economy recovers, to raise IOR sufficiently to maintain banks' willingness to hoard reserves.

Another route the Fed could take is that, instead of attempting to fine-tune inflation, policymakers could focus on stabilizing the growth of total spending—that is, nominal gross domestic product (NGDP) or nominal income—and allow market forces to determine the split between the growth of real output and inflation. Flexibility in the price level, which moves inversely with changes in real output, would be limited by the constraint on the growth of NGDP over time. That constraint could be institutionalized by adopting an appropriate monetary rule. Such a rule would reduce the uncertainty that exists under the present discretionary government fiat money regime.

Conclusion

The acceleration of 12-month CPI inflation from 5 percent in May to 5.4 percent in June should be a wake-up call for the Fed. Chairman Powell sees current inflationary pressures as transitory. But with more rapid monetary growth and velocity rising, policymakers need to take the possibility of inflation seriously—especially in light of massive government deficits that may be monetized.

The Fed has promised to keep interest rates near zero and to maintain its massive balance sheet, which now exceeds $8 trillion, until the economy reaches its full potential, but it has also proclaimed that it wants inflation to increase to make up for undershooting. That approach could backfire if inflationary expectations rise and the Fed policymakers don’t step on the monetary brakes soon enough. A better understanding of the basics of inflation is a first step in producing better policy and safeguarding the property rights individuals have in a stable-valued currency.

 

https://www.cato.org/blog/primer-inflation 

 



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Part 5 – The Fourth Branch of Government, The Intelligence Branch


When we understand how the Fourth Branch works [See all Previous Outlines], questions about our dysfunctional U.S. modern government are answered. Additionally, the motives and intentions of people inside the institutions start to reconcile. However, before completing the final outline, there is a structural understanding needed about the global intelligence apparatus.

On a global scale – the modern intelligence gathering networks are now dependent on data collection to execute their intelligence missions.  In the digital age nations have been executing various methods to gather that data.   Digital surveillance has replaced other methods of interception.  Those surveillance efforts have resulted in a coalescing of regional data networks based on historic multi-national relationships.

We  have a recent frame of reference for the “U.S. data collection network” within the NSA.  Through the allied process the Five Eyes nations all rely on the NSA surveillance database (U.K, Australia, Canada, New Zealand and U.S.)   The NSA database provides the digital baseline for intelligence operations in defense of our allies.  The portals into the NSA database are essentially an assembly of allies in like-minded ideological connection to the United States.

Unfortunately, there have been some revelations about the NSA database being used to monitor our allies, like in the example of Germany and surveillance on Angela Merkel’s phone.  As long as “the good guys” are operating honorably, allies of the United States can feel confident about having protection from the NSA surveillance of global digital data.  We warn our friends if we detect something dangerous etc.

The U.S. has nodes on communication pipelines to intercept and extract data.  We have also launched hundreds, perhaps thousands, of satellites to conduct surveillance and gather up data.  All of this data is fed into the NSA database where it is monitored (presumably) as a national security mechanism, and in defense of our allies.

However, what about data collection or data networks that are outside the NSA database?  What do our enemies do?  The NSA database is just one intelligence operation of digital surveillance amid the entire world, and we do not allow access by adversaries we are monitoring.  So what do they do?  What do our allies do who might not trust the United States due to past inconsistencies, ie. the Middle-East?

The answers to those questions highlight other data collection networks.  So a brief review of the major players is needed.

♦ CHINA – China operates their own database.  They, like the NSA, scoop up data for their system.  Like us, China launches satellites and deploys other electronic data collection methods to download into their database.  This is why the issues of electronic devices manufactured in China becomes problematic.  Part of the Chinese data collection system involves the use of spyware, hacking and extraction.

Issues with Chinese communication company Huawei take on an added dimension when you consider the goal of the Chinese government to conduct surveillance and assemble a network of data to compete with the United States via the NSA.  Other Chinese methods of surveillance and data-collection are less subversive, as in the examples of TicTok and WeChat.  These are Chinese social media companies that are scraping data just like the NSA scrapes data from Facebook, Twitter and other Silicon Valley tech companies.  [ Remember, the Intelligence Branch is a public-private partnership. ]

♦ RUSSIA – It is very likely that Russia operates their own database.  We know Russia launches satellites, just like China and the USA, for the same purposes.  Russia is also very proficient at hacking into other databases and extracting information to store and utilize in their own network.  The difference between the U.S., China and Russia is likely that Russia spends more time on the hacking aspect because they do not generate actual technology systems as rapidly as the U.S. and China.

The most recent database creation is an outcome of an ally having to take action because they cannot rely on the ideology of the United States remaining consistent as the administrations ping-pong based on ideology….

 SAUDI ARABIA – Yes, in 2016 we discovered that Saudi Arabia was now operating their own intelligence data-gathering operation.  It would make sense, given the nature of the middle-east and the constant fluctuations in political support from the United States.   It is a lesson the allied Arab community and Gulf Cooperation Council learned quickly when President Obama went to Cairo in 2009 and launched the Islamist Spring (Arab Spring) upon them.

I have no doubt the creation of the Saudi intelligence network was specifically because the Obama administration started supporting radical Islamists within the Muslim Brotherhood, and threw fuel on the fires of extremism all over the Arab world.

Think about it., What would you do if you were Saudi Arabia, Egypt, Bahrain, Kuwait, the UAE, Jordan, Oman or Yemen and you knew the United States could just trigger an internal uprising of al-Qaeda, ISIS and the political arm of the Muslim Brotherhood to seek your destruction?

Without a doubt, those urgent lessons from 2009, 2010, 2011 triggered the formation of the Arab Intelligence Network as a network to defend itself with consistency.  They assembled the network and activated it in 2017 as pictured above.

 Israel – Along a similar outlook to the Arab network, no doubt Israel operates an independent data collection system as a method of protecting itself from ever-changing U.S. politics amid a region that is extremely hostile to its very existence.   Like the others, Israel launches proprietary satellites, and we can be sure they use covert methods to gather electronic data just like the U.S. and China.

As we have recently seen in the Pegasus story, Israel creates spyware programs that are able to track and monitor cell phone communications of targets.  The spyware would not work unless Israel had access to some network where the phone meta-data was actually stored.  So yeah, it makes sense for Israel to operate an independent intelligence database.

♦ Summary:  As we understand the United States Intelligence Branch of government as the superseding entity that controls the internal politics of our nation, we also must consider that multiple nations have the same issue.  There are major intelligence networks around the world beside the NSA “Five-Eyes” database.  China, Russia, Saudi Arabia and Israel all operate proprietary databases deploying the same tools and techniques for assembly.

The geopolitical conflict that has always existed has now shifted into a digital battle-space.  The Intelligence Agencies from these regions are now operating as the backbone of the government that uses them, and has become dependent on them.  [<- Reread that].

Once you accept the digital-era intelligence apparatus of China, Russia, Saudi-Arabia, The United States and Israel, are now the primary national security mechanisms for stabilization of government; then you accept the importance of those intelligence operations.

Once you understand how foundational those modern intelligence operations have become for the stability and continuity of those governments…… then you begin to understand just how the United States intelligence community became more important than the government that created it.

What you have just read is the baseline for the next chapter in ¹our series of how the Intelligence Branch has become the superseding branch of the United States government.  This foundational understanding also explains why traditional intelligence “oversight”, which was never structured to end up as subservient to the intelligence system it was intended to oversee, has become useless in controlling or restraining this Intelligence Branch.

¹The Intelligence Branch exists as a public-private partnership. Now, you also know why Google has targeted CTH.  We will keep this website operational for as long as possible…. WHATEVER IT TAKES !


'There's Something Happening Here...'

 

 

Stephen Stills and Richie Furay of the Buffalo Springfield Band 1967

 
Article by Andrew W. Coy in The American Thinker
 

'There's Something Happening Here...'

Stephen Stills's brooding and foreshadowing lyrics to the song "For What It Is Worth" from 1966 seems to bear a great deal of relevance today. 

The band Buffalo Springfield sang this song as a challenge to the political power structure in the late '60s. Stills's words seem to be very relevant and timely in 2021 as the patriots are  left out of the election process and isolated from power, denied power, and are now looking around. 

Many patriots are now thinking "There's Something Happening Here," but are just not clear on what it is, what is coming, and what the results will be.  There is an undercurrent going on that is felt but not seen at this time.  Stills's words expressed great dissatisfaction with the national government, estrangement of government from the discontented, and a sense that the government is ignoring and does not care about the masses. 

There is a real sense of physical threat by the progressive government against the people.  And there is a real arrogance by the powerful government elite that the populist masses, including the patriots, just cannot do anything about progressive abuse of power.  A real sense of estrangement, isolation, and unfairness that the outsiders felt in the '60s, is what the patriots (conservatives/Christians/constitutionalists) feel today. 

There appears to be a great deal of events happening all at once and closely linked that give hope.  And the people are aware and noticing. Patriots aren't sure whether these are storm clouds of disaster or maybe the sun is starting to shine in as an illuminator to disinfect.  It's unclear, but something is happening here.

It has become clear that voter fraud actually happened in Arizona.  There appears to be without question, enough evidence of fraudulent votes to swing the presidential election in Arizona.  And that most likely Donald Trump won that state.

A state senator from Arizona has now called for the electors to come back and revote in Arizona for president.  If there is a revote in Arizona, it gets real-real fast.

There is now a synergy of force, energy, credibility and legitimacy which gives the states of Georgia, Pennsylvania, Wisconsin, and now maybe even Michigan, for these states to have their own professional forensic audits that verify who actually won their states.  History might show Arizona as the lynchpin to the tectonic shift in the electoral college votes.

As we look around to see what is happening, as it becomes more and more evident that there was certain election fraud in very important contested purple states...the China COVID virus seems to be getting worse. It appears as we look around, that the more people start to believe Trump actually won, the more there is a push from the Progressives and blue states to wear masks (even if already fully vaccinated) and that they will probably shut down businesses and schools again.  False flag?

As we look around, we notice three events are happening simultaneously at the same time.  Critical Race Theory is teaching students to hate others based on race, progressive historians are saying America started in 1619 (because of the slave trade) not 1776, and statues are being pulled down of our Founding Fathers and heroes of American history.  The only explanation for this is to get Americans to hate their past, to loathe their own history and heroes; and thus dramatically change the future for America in a very dark way.  And not in a democratic republic-type way, but into a totalitarian way.

It now has become clear that within the January 6 "Stop the Steal Rally," there were actual FBI agents and informants of the Deep State that not only participated, but led and encouraged the masses on that day.  FBI agents did not just watch and observe, they encouraged and led Trump supporters.  Therefore the FBI agents "set up" the Trump supporters on J-6.  Entrapment.

It is now clear that the Deep State police during the J-6 "Stop the Steal Rally" opened the doors, removed the barricades, and helped patriots to get inside of the Capitol building. The capitol police helped the Trump supporters to just walk right in, peaceably, like a middle school field trip.  Entrapment.

Thus at least to a certain extent, J-6 was a false flag operation run by the enemies of Trump, patriots, and a free and fair election.  The patriots underestimated the Deep State.

We now know that the military, which refused to patrol our southern border and their commander-In-chief because they said keeping illegal immigrants out of our country was not their job...are now willing participants in helping to fly illegal immigrants around America.  The military is helping to place people who have come into our country illegally, into the American heartland.  General Milley does not think it's the military's role to keep America safe...but it is the military's role to settle illegal immigrants inside of America.  Is General Milley so woke he harms American interests?  The number of illegal immigrants into America since Biden assumed office is approaching one million illegals.  Is the military the actual fifth column against free and fair elections?

The NSA has not denied that they are spying on Tucker Carlson.  Therefore, the NSA which was created to spy on our foreign enemies, are now spying domestically on American citizens.   Within the First Amendment is the freedom of press.  The NSA spying on the press creates a chill that reminds everyone of 1984.  Where is the ACLU when it comes to intelligence agencies spying on Bill of Rights-protected Americans? 

How long might it be before members of the press like Tucker Carlson, Glenn Beck, Mark Levin, and Glenn Greenwald are put into jail as political prisoners of the regime.  Put into jail for the charge of disseminating  "political disinformation."  It would not be hard at all for the NSA, CIA, or FBI to create false information and place it on their personal computers.  Other regimes do just this.  Chilling.  BTW...again, where is the ACLU? 

As we stop and look around and ponder; and have been told for more than a year to follow the science, follow the science, follow the science.  No one, absolutely no one has explained the science of needing to wear a mask after being fully vaccinated.  Why are we being told and forced and mocked for not wearing masks if we are fully vaccinated?  Either the vaccines don't work, or something worse is happening here.    

American citizens are noticing that Biden has created an open border on our southern border allowing illegal immigrants from any country who can get there.  This includes terrorists from the Middle East.  Yet, the Biden administration announced that freedom seekers from communist Cuba will not be allowed entry into America.  So Biden is saying that if you are trying to escape communism and wanting capitalism and freedom in America, you are persona non grata.  But if you are MS-13 or child traffickers...come on in.  WT*.

The D.C. police are keeping the J-6 "trespassers" in jail under solitary confinement as if they are political prisoners.  Possibly, the progressives believe anyone who disagrees with them are now political prisoners.  A Democrat legislator in Congress did exactly what the "trespassers" did on J-6, and she is already out of jail, within 24 hours. Meanwhile, six months later, patriots are still under solitary confinement.  Again, where is the ACLU?

Biden has gone there. He is starting to use the words "civil war."  Three times in fact.  He has compared the patriots to the Confederates.  When the president uses language that compares his political opponents to rebels and thus treasonous, it becomes very dangerous to dissent.  Let history record, Biden used the words "civil war" first.  Leftist revisionists of history will ignore this down the road.  One knows certain what the reaction would have been last week if President Trump used the words "civil war."  The populists are noticing the hypocrisy.

Biden has always said the vaccines were voluntary.  But now he is sending workers house to house, as the Gestapo or Chinese soldiers, to "convince" Americans to "take the jab."  Why, if there is nothing wrong with the vaccine, does it take the strong arm of the government to go house-to-house to "convince" Americans to be vaccinated? 

Americans of goodwill are noticing the unfairness and bias between how the summer violent rioters have been treated by the judicial system, compared to how the patriots are being treated because of their political differences with the progressives' Deep State.

Some well-known Trump supporters are saying very big news and that extremely important events will be happening this summer.  They are implying that President Trump will be placed back in office where he was rightfully elected.  Possibly by Labor Day Weekend.  It is hard to see how this occurs, but we are looking around.

Patriots are saying out loud that by August 13, something dramatic happens that creates a tectonic shift in the White House.  The date August 13th is being tossed about freely.  Thus, Americans and especially patriots, need to be fully prepared for a progressive "false flag."  Progressives will not just sit back and say "you caught us" and "we give up."  They will be prepared, much like J-6. 

Once Patriots are convinced after Arizona, then Georgia, Pennsylvania, Wisconsin...that the election was stolen, they will not "Let It Be."  Because if they were to "Let It Be,"  meaning the 2020 election  to go unchallenged, they know 2022 and 2024 will be the exact same sham.  Fraud to win.

There is a feeling, there is a tension, there is an electricity in the air that something is up. There is a feeling that a great deal is happening below the surface for which we can't see, but can feel.  To paraphrase Stephen Stills in his 1966 song classic; there is something happening here in America today, what it is I'm not clear.  There is a government with guns and jails over there.  And millions of citizens with guns and ammo over here.  (Biden is the one who brought up civil war, Biden)  Everybody needs to stop and look around to see what's going down.  The "battle lines are being drawn" and "step out of line, the men come and take you away."  Stills' foreshadowing classic still resonates and relates especially today.  Maybe today more than in about 50 years.  As human nature and the lust for complete  power does not change, history thus repeats itself, again and again.  What is happening now, we're just not clear.  But be sure to look around, because most assuredly, something is happening now.  For What It's Worth. 

 

https://www.americanthinker.com/articles/2021/07/theres_something_happening_here.html





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