Tag Archives: EU

SoT – Dr. Paul Craig Roberts: Washington Represents The Most Concentrated Evil

In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists, and will persist.  – President Eisenhower, farewell speech from the White House

President Eisenhower, in his farewell speech from the White House warned the nation about the U.S. military-industrial complex.  Since that time, the United States Government has become the world’s most dangerous terrorist organization.

The United States [military policy] has destroyed seven countries.  The populations there are subject to ongoing continual violence either from the U.S. or these Jihadists or from the Islamic State.  In Libya there’s various factions, no Government – just warlords fighting and nobody’s safe anywhere so the populations are getting out.  You can’t live in that type of situation. – Dr. Paul Craig Roberts on the Shadow of Truth

Lost in the rivers of humanity that have been streaming out of Africa and the Middle East and flooding into Europe is the fact the U.S. military is responsible for this crisis.   Not only has the U.S. destroyed several countries around the globe, the U.S. Government now appears to provoking Russia into a military conflict in both Ukraine and Syria that risks escalating into a nuclear war.  Even Henry Kissinger and Zbigniew Brzezinski – two notorious warhawks – have both recently stated that the U.S. Government is pushing Russia too hard.

In fact Dr. Paul Craig Roberts now believes that the only way to avoid eventual nuclear war is a break-up of the EU and NATO.  The EU countries exist politically, economically and strategically as vassal countries of the U.S.  And the United States uses NATO as a “cover” to implement is unilateral implementation of dangerously aggressive military action all over the globe.

This policy is insane and the people running the policy are insane.  The Shadow of Truth hosted Dr. Paul Craig Roberts in a two-part podcast which covers the current geopolitical risks facing the world as fomented by the U.S. and last week’s FOMC decision to leave zero percent interest rates in place.   Part 1 is below and Part 2 will be available shortly:

Tsipras Sold Out – Who Cares? The Global Economy Is Still Collapsing

The Greece situation was “fixed” once the the United States IMF began to flex its muscles openly.  Former Assistant Treasurer, Paul Craig Roberts – who can speak from a position of authority on these matters – explained to the world why this was the case a week ago:  Greece And The EU Situation.

So Tsipras, like every modern political leader in every western country, took a big bag of cash from the U.S., and capitulated to the EU’s demands.

Who cares?  Anyone with two brain cells to rub together could have figured this one out.  If Greece fell, it would have triggered the nuclear daisy chain of credit default swaps, of which Deutsche Band, Citigroup and JP Morgan are the largest bag-holders.

Furthermore, how does this change the fact that the global economy – including and especially the U.S. – is collapsing?  Seriously.   Greece is getting stuffed with more debt that it will never be able to repay in exchange for some key national assets that the EU will own once Greece defaults again.  At best this just puts out the fuse which will inevitably light the global debt and derivatives time bomb for a while longer.

In fact, the last several weeks of Greek drama have done nothing more than provide a great cover for ongoing and obvious economic deterioration occurring.  The numbers are especially prevalent in the U.S.:

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The graph above shows the year over year change in retail sales.  Despite $3.6 trillion in monetary stimulus, the Fed has been unable to stimulate a boom in retail spending.  This reflects that fact that the real median household income of lower now than it was in 2007.

The percentage of Americans who are counted as part of the labor force is at its lowest level since 1977, when the majority of households were still one-income families.  So much for Obama’s self-congratulatory job boom.  Obama wouldn’t know a real job if Henry Kissinger shoved it up is ass.

As for auto sales, it’s taken a record level of debt issuance and, more troubling, a record level of subprime auto loans, in order to stimulate a mini-bubble in auto sales.  This has only succeeded in getting auto sales to bounce back to their 2004 levels.  But where will the next round of debt-stuffing come from, as the average loan term now extends well beyond 7 years?

The housing market is next.  I know first-hand that home listings in Denver are starting to spike up in good ‘ole 2007 parabolic fashion, especially in the over $750k segment.   I receive “price change” alerts in my email several times a day for homes listed in central Denver in every price segment.  In the “McMansion” suburban neighborhoods, many areas have several listings per block now.  It’s quite stunning.

I know from reports from readers in other large MSA’s that they are seeing a similar occurrence in their area.  In fact, the Dr. Housing Bubble blog is now reporting the home inventory is up 70% from 2013 in three major inland counties:  Dr. Housing Bubble Blog

Point of note:  Colorado and SoCal led the last housing bubble implosion.  We may see a continued bounce in home sales for June, which will be reported soon.  But most of the data that go into the June sales reports – both existing and new homes – are lagged and ultimately reflect contracts that were signed in April in May, when mortgage rates were 100 basis points lower.

Despite the fact the Fed has directed $1.8 trillion of its $3.6 trillion QE directly into the housing market via direct mortgage purchases, home sales volume for both new and existing homes is less than 50% of the housing bubble peak.  The only result accomplished by the Fed has been to ignite rampant home price inflation, which has pushed a lot of suckers into chasing homes that they will have been able to have buy a year from now at a substantial discount.  These newly minted homeowners and stuck flippers will find themselves significantly underwater in their mortgage.

As you can see, the Greek drama has served the purpose of providing a redirection from the ongoing economic collapse.  In fact, lost in this absurdity of the past week’s Kabuki theatre are other points of trouble quickly rearing their ugly heads…What ever happened with Puerto Rico’s impending debt collapse?…