Skip navigation.
Home
   Candidate & issue information
Informing Hawaii's voters

Russia Issues Snowden 3-Year Residence Permit

War: Russia Holds The Cards

Paul Craig Roberts

PaulCraigRoberts.org

August 6, 2014

By Paul Craig Roberts

More evidence, about which I hope to write at length, is piling up that Europe has acquiesced to Washington’s drive to war with Russia, a war that is likely to be the final war for humanity. By Russia’s low key and unthreatening response to Washington’s aggression, thereby giving the West the mistaken signal that Russia is weak and fearful, the Russian government has encouraged Washington’s drive to war.

It appears that the Russians’ greatest weakness is that capitalism has raised enough Russians to a comfortable living standard that the war that Washington is bringing to them is scary, and they want to avoid it in order to continue living like decadent Western Europeans.

The same thing happened to the once fierce Vandals in North Africa in the 6th century when the Vandals were exterminated by a small force from the Eastern Roman Empire.The Vandals had lost the valor that had given them a rich chunk of the Roman Empire.

Russia needs to save the world from war, but the avoidance of war requires Russia to make the costs clear to Europeans.

Faced with economic sanctions, essentially illegal and warlike actions, applied to various Russian individuals and businesses by Washington and Washington’s EU puppets and by Switzerland, a country taught to be more fearful of Washington than of Moscow, Russian President Putin has asked the Russian government to come up with countermeasures to be implemented in response to the gratuitous sanctions imposed against Russia.

But, Putin says, Russia must hold back: “Obviously we need to do it cautiously in order to support domestic manufacturers, but not hurt consumers.”

In other words, Putin wants to impose sanctions that are not really sanctions, but something that looks like tit for tat.

The amazing thing about Russia finding herself on the defensive about sanctions is that Russia, not Washington or the impotent EU, holds all the cards. Putin can bring down the economies of Europe and throw all of Europe into political and economic chaos simply by turning off the energy supply.

Putin would not have to turn off the energy supply for very long before Europe tells Washington good-bye and comes to terms with Russia. The longer Putin waits, the longer Europe has to prepare against Russia’s best weapon that can be used to peacefully resolve the conflict that Washington has orchestrated.

Washington’s aggressive moves against Russia will not stop until Putin realizes that he, not Washington, holds the cards, and plays them.

The world has had enough of Washington, its constant lies, its constant wars, and its bullying. Putin would do well to spend a few hours with Belisarius, Justinian the Great’s great general.

“When I treat with my enemies,” Belisarius said, “I am more accustomed to give than to receive counsel; but I hold in one hand inevitable ruin, in the other peace and freedom.”

That is precisely the position that Vladimir Putin is in with regard to Europe. In one hand he holds the ruin of Europe. In the other peace and freedom in the relations between Russia and Europe.

He needs to call up the dumbshit European “leaders” and tell them.

If Putin does not put his foot down hard and make clear to the Europeans what the stakes are, Washington will succeed in its determination to drive the world to war, and “exceptional and indispensable” Americans will die along with all the rest.

Copyright © Paul Craig Roberts 2014

About Paul Craig Roberts

Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments and his Internet columns have attracted a worldwide following. Roberts' latest books are The Failure of Laissez Faire Capitalism and Economic Dissolution of the West and How America Was Lost.

Deputy Speaker of Israeli Knesset Wants ALL Arabs Out of Gaza

Moshe Feiglin, Deputy Speaker of the Israeli Knesset, beats around the bush when pressed by Wolf Blitzer, who is also a Jew. Wolf persists, and Moshe finally admits that he wants ALL Arabs, which includes the majority Palestinians, removed from Gaza — for the sake of peace, he says. He further says this is a case of good against evil, putting Jews on the side of good. Feiglin is a member of the Likud party, Prime Minister Benjamin Netanyahu's party.


Link:

Feiglin Outlines Five-Step 'Jewish Sovereignty' Plan [Israel National News] May 13, 2014

Eliminating U.S. Economic Failure by Redefinition

Paul Craig Roberts

Redefinition Is America’s Most Powerful Factor of Production

PaulCraigRoberts.org

August 4, 2014

By Paul Craig Roberts

Last week’s government guesstimate that second quarter 2014 real GDP growth will be 4% seems nonsensical on its face. There is no evidence of increases in real median family incomes or real consumer credit that would lift the economy from a first quarter decline to 4% growth in the second quarter. Middle class store closings (Sears, Macy’s, J.C. Penney) have spread into the Dollar stores used by those with lower incomes. Family Dollar, a chain in the process of closing hundreds of stores is being bought by Dollar Tree, the only one of the three Dollar store chains that is not in trouble. Wal-Mart’s sales have declined for the past 5 quarters. Declining sales and retail store closings indicate shrinking consumer purchasing power. Retail facts do not support the claim of a 4% GDP growth rate for the second quarter, and they do not support last Friday’s payroll job claim of 26,700 new retail jobs in July.

What about the housing market? Don’t the headlines accompanying last Friday’s payroll jobs report, such as “Hiring Settles Into Steady Gains,” mean more people working and a boost to the economy from a housing recovery? No. What the financial press did not report is that the US is in a structural jobs depression. In the 12-month period from July 2013 through July 2014, 2.3 million Americans of working age were added to the population. Of these 2.3 million only 330 thousand entered the labor force. My interpretation of this is that the job market is so poor that only 14% of the increase in the working age population entered the labor force.

The decline in the labor force participation rate is bad news for the housing market. The US labor force participation rate peaked at 67.3% in 2000 and has been in a sustained downturn ever since. The rate of decline increased in October 2008 with the bank bailout and Quantitative Easing. From October 2008 to the present, 13.2 million Americans were added to the working age population, but only 818 thousand, or 6%, entered the labor force. http://investmentresearchdynamics.com/americas-structural-job-depression... Despite government and financial press claims, the Federal Reserve’s multi-year policy of printing money with which to purchase bonds did not restore the housing or job markets.

What about the stock market? It has been down in recent days but is still high historically. Isn’t the stock market evidence of a good economy? Not if stocks are up because corporations are buying back their own stock. Corporations are now the largest buyers of stocks. Recently we learned that from 2006 through 2013 corporations authorized $4.14 trillion in buybacks of their publicly traded stocks. Moreover, it appears that corporations have been borrowing the money from banks with which to buy back their stocks. Last year there were $754.8 billion in authorized stock buybacks and $782.5 billion in corporate borrowing. In the first three months of this year, companies purchased $160 billion of their own stocks. http://wallstreetonparade.com/2014/07/another-wall-street-inside-job-sto...

Borrowing to buyback stock leaves a company with debt but without new investment with which to produce revenues to service the debt. The massive stock buybacks demonstrate that American capitalism is now corrupt. In order to maximize personal short-term financial benefits flowing from bonuses, stock options, and capital gains, CEOs, boards of directors, and shareholders are decapitalizing public companies and loading them up with debt.

Well, isn’t the economy being helped by the return of manufacturing to America? Apparently not. Data for 1999-2012 indicate that the offshoring of manufacturing increased by 9%.

One economist, Susan Hester, an economist for the Retail Industry Leaders Association, has decided to turn the loss of manufacturing jobs into a virtue. Her argument is that retail employment dwarfs manufacturing employment and that more American jobs can be created by selling more imports than by encouraging manufacturing in order to provide exports.

According to Ms. Hester’s research, the US makes more money from the retail side than from the production side. She concludes that the value added to a product by offshore labor is a small percentage of the value added by “managing offshored production, handling Customs clearances, managing warehouses and distribution, marketing apparel products, and by millions of people in the retail sector stocking shelves and working cash registers.”

In other words, the US manufacturing jobs moved offshore are just a throwaway. The money is made in selling the imports.

Ms. Hester neglects to recognize that when offshored production is brought to the US to be marketed, it comes in as imports and results in a larger US trade deficit. Foreigners use dollars paid to them for the products that they make for US firms to purchase ownership of US bonds, stocks, and real assets such as land, buildings, and companies. Consequently, interest, profits, capital gains, and rents associated with the foreign purchases of US assets now flow to foreigners and not to Americans. The current account worsens.

It works like this: The excess of US imports over US exports leaves foreigners with claims on US income and wealth that are settled by foreign purchases of US assets. The income produced by these assets now flows abroad with the consequence that income earned by foreigners on their US investments exceeds the income earned by the US on its foreign investments.

According to Ms. Hester’s reasoning, Americans would be better off it they produced nothing that they need and in place of manufacturing relied on the incomes of US fashion designers and pattern makers who specify the offshored production for US markets, on the compliance officers and freight agents, on production planning and expediting clerks, and on longshore workers and railroad employees who deliver the foreign-made goods to US consumer markets.

Ms. Hester believes that the value-added by offshored manufacturing is inconsequential. How then did China get rich from it, becoming the second largest economy and employing 100 million people in manufacturing (compared to America’s 12 million), and acquire the largest foreign reserves of any country?

After Ms. Hester answers that question she can explain why US corporations go to the trouble to offshore their manufacturing if the contribution to value-added is so low? The value added is obviously substantial enough for the labor cost savings to pay for transportation costs to the US from Asia, for the cost of set-up and management of foreign based facilities, and for the cost of the adverse publicity from abandoning US communities for Asia and still leave value-added after all costs to enlarge profits and drive up stock prices and executive bonuses.

Ms. Hester fools herself. The low value that she calculates Chinese, Indian, or Vietnamese labor adds to the price of a shirt reflects the low foreign labor cost, not a low value of the shirt in US markets or a low value of an iPhone in European markets. Marketing, warehousing and distribution are done in the US by more highly paid people, and this is why it looks like the value added comes from sources other than manufacturing. Ms. Hester overlooks that the lower cost of foreign labor does not translate into a less valued product but into higher profits.

Economists assume that the labor cost savings are passed on to the consumers in lower prices, but I have not experienced declining prices of Nike and Merrell sports shoes, of sheets and towels, of Brooks Brothers and Ralph Lauren shirts, of Apple computers, or whatever as a result of moving US production offshore. The labor cost savings go into profits, managerial bonuses, and capital gains for shareholders and is one reason for the extraordinary increase in income and wealth inequality in the US.

Focused on short-term profit, manufacturers and retailers are destroying the US consumer market. The average annual salary of a US apparel manufacturing worker is $35,000. The average salary of US retail employees is less than half of that amount and provides no discretionary income with which to boost consumer spending in retail stores.

The American corporate practice of offshoring manufacturing has made it impossible for the Obama regime to keep its promises of creating manufacturing jobs and exports. Unable to create real jobs and real exports, the US government has proposed to create virtual jobs and virtual exports made by “factoryless goods producers.” In order to keep his promise of doubling the growth of US exports, the Obama regime wants to redefine foreign output as US output.

A “factoryless goods producer” is a newly invented statistical category. It is a company like Nike or Apple that outsources the production of its products to foreign companies. The Obama regime is proposing to redefine companies such as Apple that own a brand name or a product design as manufacturing companies even though the companies do not manufacture.

In other words, whether or not a US company is a manufacturer does not depend on its activity, but on its ownership of a brand name made for the company by a foreign manufacturer. For example, Apple iPhones made in China and sold in Europe would be reported as US exports of manufactured goods, and iPhones sold in the US would no longer be classified as imports but as US manufacturing output. Apple’s non-manufacturing employees would be transformed into manufacturing employment.

Clearly, the purpose of this statistical deception is to inflate the number of US manufacturing jobs, US manufacturing output, and US exports and to convert imports into domestic production. It is a scheme that eliminates the large US trade deficit by redefinition.

The reclassification would leave the government’s Office of Statistical Lies with the anomaly that products made in China, India, Indonesia or wherever become US GDP as long as the brand name is owned by a US corporation, but the payments to the Asian workers who produced the products remain as claims on US wealth and can be converted into ownership of US bonds, companies, and real estate.

For example, Chinese workers produced the Apple products, and China has the claims on US wealth to prove it. How are these claims accounted for statistically by the Obama regime’s redefinition? The US can add China’s production of the Apple products to US GDP, but how does the US deduct the Chinese-produced Apple products from China’s GDP? And how does the Obama regime’s redefinition get rid of the payments by Apple to the Chinese labor that produced the products? These payments comprise claims on US wealth.

In other words, the reclassification would double count the output of Apple’s products. If every country does this, world GDP will rise statistically regardless of the fact that no more goods and services are produced. Perhaps this is the way to define away world poverty.

“Factoryless goods producers” was foreshadowed by Harvard professor Michael Porter’s 2006 competitiveness report, a justification for jobs offshoring. Defending jobs offshoring, Porter downplayed the rise in the US trade deficit and decline in the US GDP growth rate caused by jobs offshoring. Porter argued, in effect, that ownership of the revenues and products, not the location in which the revenues and products are produced, should determine their classification. As I pointed out in my critique (see The Failure of Laissez Faire Capitalism and Economic Dissolution of the West), the result would be to raise US GDP by the amount of US production outsourced abroad and by the output of US overseas subsidiaries and to decrease the GDP of the countries in which the manufacturing actually takes place. Consistency would require that the German and Japanese autos, for example, that are produced in the US with US labor would become deductions from US GDP and be reported as German and Japanese GDP.

As I have emphasized for years, the West already lives in the dystopia forecast by George Orwell. Jobs are created by hypothetical add-ons to the reported payroll figures and by inappropriate use of seasonal adjustments. Inflation is erased by substituting lower priced items in the inflation index for those that rise in price and by redefining rising prices as quality improvements. Real GDP growth is magicked into existence by deflating nominal GDP with the understated measure of inflation. Now corporations without factories are going to produce US manufacturing output, US exports, and US manufacturing jobs!

Every sphere of Western existence is defined by propaganda. Consequently, we have reached a perfect state of nihilism. We can believe nothing that we are told by government, corporations, and the presstitute media.

We live in a lie, and the lie is ever expanding.

Copyright © Paul Craig Roberts 2014

About Paul Craig Roberts

Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments and his Internet columns have attracted a worldwide following. Roberts' latest books are The Failure of Laissez Faire Capitalism and Economic Dissolution of the West and How America Was Lost.

Frustrated US Citizen Goes through TexMex Border

Meets likewise frustrated border patrol agent

Published on YouTube August 3, 2014

Truck driver introduction: I was driving through the U.S. Border Patrol with my Icam glasses on and got this on Video. I asked the question and got the truth!

U.S. a Key Partner in All Israeli Attacks

The Intercept

By Glenn Greenwald

August 4, 2014

The U.S. government has long lavished overwhelming aid on Israel, providing cash, weapons and surveillance technology that play a crucial role in Israel’s attacks on its neighbors. But top secret documents provided by NSA whistleblower Edward Snowden shed substantial new light on how the U.S. and its partners directly enable Israel’s military assaults – such as the one on Gaza.

Over the last decade, the NSA has significantly increased the surveillance assistance it provides to its Israeli counterpart, the Israeli SIGINT National Unit (ISNU; also known as Unit 8200), including data used to monitor and target Palestinians. In many cases, the NSA and ISNU work cooperatively with the British and Canadian spy agencies, the GCHQ and CSEC.

The relationship has, on at least one occasion, entailed the covert payment of a large amount of cash to Israeli operatives. Beyond their own surveillance programs, the American and British surveillance agencies rely on U.S.-supported Arab regimes, including the Jordanian monarchy and even the Palestinian Authority Security Forces, to provide vital spying services regarding Palestinian targets.

Read more . . .

Glenn Greenwald: Mainstream Media Gets an F on Their Coverage of Israel's Carnage in Gaza

August 4, 2014

Huffpost introduction: Glenn Greenwald lambasted the U.S. government's approach to the Gaza conflict in an article published Monday by The Intercept, but his criticism extends to America's media practices -- for which he gives U.S. journalists a failing grade.

"There's no question that the way that the American media covers this conflict is based on the principle that Israeli lives are just inherently more valuable than Palestinian lives," he told HuffPost Live's Marc Lamont Hill in an interview Monday. "It takes probably 50 Palestinians being killed to get anywhere near the attention of, say, an elderly Israeli woman being frightened in her home and having some kind of a medical problem because of the trauma."

Click here to watch the video.

Biblical Scholar Smacks Down Piers Morgan When Asked to Name an Instance When Christ Said Anything about Homosexuality

Published on YouTube December 19, 2013

Downtrend introduction: [Piers Morgan] decided to invite a Biblical scholar, Dr. Michael Brown, on the show so that he could trap him into admitting that Jesus did not, in fact, condemn homosexuality.

That trap was not set properly.

When Morgan asked Brown [a Jew who had converted to Christianity] to cite just one instance of Jesus condemning homosexuality, he probably thought that he had already won the debate. But alas, he was hoisted on his own petard.

Brown cited not one, but three instances of Jesus condemning homosexuality.

The US-Israel Special Relationship Timeline that AIPAC Doesn’t Want You to See

The Bilzerian Report

August 23, 2012

May 14, 1948- Official Recognition- The United States of America becomes the first country to officially recognize Israel as an independent nation.

1949-1973- US-Israel Aid Commences- The United States gives Israel an average of $122 million per year in foreign aid payments.

Summer 1954- Lavon Affair- Israel recruits Egyptian Jews to blow up American and British targets in Egypt. Israel planned on blaming the murderous false-flag attacks on the Muslim Brotherhood in an effort to garner support from the US and Britain. After officially denying any involvement, the Israeli government finally admitted their role in the incident in 2005 by honoring the surviving agents with a certificate of appreciation.

Read more . . .

Links:

'Greater Israel': The Zionist Plan for the Middle East [Hawaii Political Info] Sep 8, 2013

General Wesley Clark: 7 Countries in 5 Years [Hawaii Political Info] Sep 8, 2013 (Clarifies U.S. involvement in the 'Greater Israel' plan)

Israel Attack on USS Liberty during 1967 Six-Day War Full-Length Documentary [Hawaii Political Info]

Admiral Thomas Moorer Says Israel Deliberately Attacked & Tried to Kill Everyone Aboard the USS Liberty on June 8, 1967 [USSLiberty.org]

USS Liberty—Israeli Pilot Speaks Up [Rense.com]

Jews made deal to bring the U.S. into WWI & WWII Testimony by Benjamin Freedman, Jewish political insider who converted to Christianity

The Six-Day War Deceptions Part 1 [YouTube]

The Six-Day War Deceptions Part 2 [YouTube]

Israel, Zionism & Jews [Hawaii Political Info] Collection of articles

438 Ukrainian Soldiers Request Russian Sanctuary

Published on YouTube Aug 4, 2014

Russia Today introduction: A total of 438 soldiers, including 164 Ukrainian border guards, have been allowed to cross into Russia on Sunday night after they requested sanctuary.

Syndicate content