Paul Craig Roberts: "The US military no longer does war. It does assassinations, usually of the wrong people. The main victims of the US assassination policy are women, children, village elders, weddings, funerals, and occasionally US soldiers mistaken for Taliban by US surveillance operating with the visual acuity of the definition of legal blindness."

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How The US Government and US military Became Murder, Inc. — Paul Craig Roberts

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March 24, 2015 | Original Here                                            Go here to sign up to receive email notice of this news letter

How The US Government and US Military Became Murder, Inc.

Paul Craig Roberts

Andrew Cockburn has written a must-read book. The title is Kill Chain: The Rise Of The High-Tech Assassins. The title could just as well be: How the US Government and US Military Became Murder, Inc.

The US military no longer does war. It does assassinations, usually of the wrong people. The main victims of the US assassination policy are women, children, village elders, weddings, funerals, and occasionally US soldiers mistaken for Taliban by US surveillance operating with the visual acuity of the definition of legal blindness.

Cockburn tells the story of how the human element has been displaced by remote control killing guided by misinterpretation of unclear images on screens collected by surveillance drones and sensors thousands of miles away. Cockburn shows that the “all-seeing” drone surveillance system is an operational failure but is supported by defense contractors because of its high profitability and by the military brass because general officers, with the exception of General Paul Van Ripper, are brainwashed in the belief that the revolution in military affairs means that high-tech devices replace the human element. Cockburn demonstrates that this belief is immune to all evidence to the contrary. The US military has now reached the point that Secretary of Defense Hagel deactivated both the A-10 close support fighter and the U-2 spy plane in favor of the operationally failed unmanned Global Hawk System. With the A-10 and U-2 went the last platforms for providing a human eye on what is happening on the ground.

The surveillance/sensor technology cannot see human footprints in the snow. Consequently, the drone technology concluded that a mountain top was free of enemy and sent a detachment of unsuspecting SEALS to be shot up. Still insisting no enemy present, a second group of SEALS were sent to be shot up, and then a detachment of Army Rangers. Finally, an A-10 pilot flew over the scene and reported the enemy’s presence in force.

By 2012 even the US Air Force, which had been blindly committed to the unmanned drone system, had experienced more failure than could any longer be explained away. The Air Force admitted that the 50-year old U-2 could fly higher and in bad weather and take better pictures than the expensive Global Hawk System and declared the Global Hawk system scrapped.

The decision was supported by the 2011 report from the Pentagon’s test office that the drone system was “not operationally effective.” Among its numerous drawbacks was its inability to carry out assigned missions 75% of the time. The Chairman of the Joint Chiefs of Staff told Congress that in addition to the system’s unacceptable failure rate, the drone system “has fundamentally priced itself out of our ability to afford it.”

As Cockburn reports: “It made no difference. Congress, led by House Armed Services Committee Chairman Buck McKeon and Democratic Congressman Jim Moran (whose northern Virginia district hosts the headquarters of both Northrop and Raytheon) effortless brushed aside these pleas, forcing the Air Force to keep buying the unwanted drone.”

Cockburn provides numerous examples of the utter failure of the unmanned revolution ushered in by unrealistic dreamers, such as Andrew Marshall, John Foster, William Perry, and David Deptula, who have done much harm to the US military and American taxpayers. The failure stories are legion and sad. Almost always the victims are the innocent going about their everyday affairs.

The book opens with the story of three vehicles crammed with people from the same village heading to Kabul. Some were students returning to school in Kabul, some were shopkeepers heading to the capital to buy supplies, others were unemployed men on their way to Iran seeking work, and some were women bringing gifts for relatives. This collection of ordinary people, represented on screens by vague images, was willfully mistaken, as the reproduced conversations between drone operators and assassins show, for a senior Taliban commander leading forces to attack a US Special Forces patrol. The innocent civilians were blown to smithereens.

The second chapter tells of the So Tri, an indigenous people in the remote wilderness of southeastern Laos who were bombed for nine years because the stupid American military sowed their environment with sensors that called down bombs when human presence was detected. High-tech warfare misidentified the villagers with Viet Cong moving through jungle routes.

One heartbreaking story follows another. If surveillance suspects the presence of a High Value Target in a restaurant, regardless of nominal restrictions on the number of innocents who can be murdered as the “collateral damage” part of the strike, the entire restaurant and all within are destroyed by a hellfire missile. Remember that the Israelis denounce terrorists for exploding suicide vests inside Israeli restaurants. What the US military does is even worse.

On other occasions the US assassinates an underling of a High Value Target on the
assumption that the Target will attend the funeral which is obliterated from the air whether the Target is present or not.

As the murders are indiscriminate, the US military defines all males killed to be valid targets. Generally, the US will not admit the deaths of non-Targets, and some US officials have declared there to be no such deaths. Blatant and obvious lies issue without shame in order to protect the “operationally ineffective” and very expensive high-tech production runs that mean billions of taxpayer dollars for the military/security complex and comfortable 7-figure employment salaries with contractors after retirement for the military brass.

When you read this book you will weep for your country ruled as it is by completely immoral and inhumane monsters. But Cockburn’s book is not without humor. He tells the story of Marine Lt. General Paul Van Riper, the scourge of the Unmanned Revolution in Military affairs, who repeatedly expressed contempt for the scientifically unsupported theories of unmanned war. To humiliate Gen. Ripper with a defeat in a massive war game as leader of the enemy Red force against the high-tech American Blue force, he was called out of retirement to participate in a war game stacked against him.

The Blue force armored with a massive database (Operational Net Assessment) and overflowing with acronyms was almost instantly wiped out by General Ripper. He sank the entire aircraft carrier fleet and the entire Blue force army went down with it. The war was over. The 21st century US high-tech, effects-based military was locked into a preset vision and was beaten hands down by a maverick Marine general with inferior forces.

The Joint Forces Command turned purple with rage. Gen. Ripper was informed that the outcome of the war game was unacceptable and would not stand. The sunken fleet magically re-floated, the dead army was resurrected, and the war was again on, only this time restriction after restriction was placed on the Red force. Ripper was not allowed to shoot down the Blue force’s troop transports. Ripper was ordered to turn on all of the Red force’s radars so that the Red forces could be easily located and destroyed. Umpires ruled, despite the facts, that all of Ripper’s missile strikes were intercepted. Victory was declared for high-tech war. Ripper’s report on the total defeat of the Blue force, its unwarranted resurrection, and the rigged outcome was promptly classified so that no one could read it.

The highly profitable Revolution in Military Affairs had to be protected at all costs along with the reputations of the incompetent generals that comprise today’s high command.

The infantile behavior of the US military compelled to create a victory for its high-tech, but legally blind, surveillance warfare demonstrates how far removed from the ability to conduct real warfare the US military is. What the US military has done in Afghanistan and Iraq is to create far more enemies than it has killed. Every time high-tech killing murders a village gathering, a wedding or funeral, or villagers on the way to the capital, which is often, the US creates hundreds more enemies. This is why after 14 years of killing in Afghanistan, the Taliban now control most of the country. This is why Islamist warriors have carved a new country out of Syria and Iraq despite eight years of American sacrifice in Iraq estimated by Joseph Stiglitz and Linda Bilmes to have cost Americans a minimum of $3 trillion. The total failure of the American way of war is obvious to all, but the system rolls on autonomously.

The Revolution in Military Affairs has decapitated the US military, which no longer has the knowledge or ability or human tools to conduct war. If the crazed Russophobic US generals get their way and end up in confrontation with Russia, the American forces will be destroyed. The humiliation of this defeat will cause Washington to take the war nuclear.

Here is Stanislav Mishin’s view of what awaits the foolish West:

http://russia-insider.com/en/2015/03/22/4790

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"The crisis in Ukraine originated with Washington’s overthrow of the elected democratic government and its replacement with Washington’s hand-chosen stooges. The stooges proceeded to act in word and deed against the populations in the former Russian territories that Soviet Communist Party leaders had attached to Ukraine. The consequence of this foolish policy is agitation on the part of the Russian speaking populations to return to Russia." "Instead of realizing its mistake, the Obama regime has encouraged the stooges Washington installed in Kiev to use violence against those in the Russian-speaking areas who are agitating for referendums so that they can vote their return to Russia." "Washington’s arrogance is unprecedented and is capable of driving the world to destruction." - Paul Craig Roberts

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Moving Closer To War — Paul Craig Roberts

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April 26, 2014 | Original Here                                              Go here to sign up to receive email notice of this news letter

Moving Closer To War

Paul Craig Roberts

The Obama regime, wallowing in hubris and arrogance, has recklessly escalated the Ukrainian crisis into a crisis with Russia. Whether intentionally or stupidly, Washington’s propagandistic lies are driving the crisis to war. Unwilling to listen to any more of Washington’s senseless threats, Moscow no longer accepts telephone calls from Obama and US top officials.

The crisis in Ukraine originated with Washington’s overthrow of the elected democratic government and its replacement with Washington’s hand-chosen stooges. The stooges proceeded to act in word and deed against the populations in the former Russian territories that Soviet Communist Party leaders had attached to Ukraine. The consequence of this foolish policy is agitation on the part of the Russian speaking populations to return to Russia. Crimea has already rejoined Russia, and eastern Ukraine and other parts of southern Ukraine are likely to follow.

Instead of realizing its mistake, the Obama regime has encouraged the stooges Washington installed in Kiev to use violence against those in the Russian-speaking areas who are agitating for referendums so that they can vote their return to Russia. The Obama regime has encouraged violence despite President Putin’s clear statement that the Russian military will not occupy Ukraine unless violence is used against the protesters.

We can safely conclude that Washington either does not listen when spoken to or Washington desires violence.

As Washington and NATO are not positioned at this time to move significant military forces into Ukraine with which to confront the Russian military, why is the Obama regime trying to provoke action by the Russian military? A possible answer is that Washington’s plan to evict Russia from its Black Sea naval base having gone awry, Washington’s fallback plan is to sacrifice Ukraine to a Russian invasion so that Washington can demonize Russia and force a large increase in NATO military spending and deployments.

In other words, the fallback prize is a new cold war and trillions of dollars more in profits for Washington’s military/security complex.

The handful of troops and aircraft that Washington has sent to “reassure” the incompetent regimes in those perennial trouble spots for the West–Poland and the Baltics–and the several missile ships sent to the Black Sea amount to nothing but symbolic provocations.

Economic sanctions applied to individual Russian officials signal nothing but Washington’s impotence. Real sanctions would harm Washington’s NATO puppet states far more than the sanctions would hurt Russia.

It is clear that Washington has no intention of working anything out with the Russian government. Washington’s demands make this conclusion unavoidable. Washington is demanding that the Russian government pull the rug out from under the protesting populations in eastern and southern Ukraine and force the Russian populations in Ukraine to submit to Washington’s stooges in Kiev. Washington also demands that Russia renege on the reunification with Crimea and hand Crimea over to Washington so that the original plan of evicting Russia from its Black Sea naval base can go forward.

In other words, Washington’s demand is that Russia put Humpty Dumpty back together again and hand him over to Washington.

This demand is so unrealistic that it surpasses the meaning of arrogance. The White House Fool is telling Putin: “I screwed up my takeover of your backyard. I want you to fix the situation for me and to ensure the success of the strategic threat I intended to bring to your backyard.”

The presstitute Western media and Washington’s European puppet states are supporting this unrealistic demand. Consequently, Russian leaders have lost all confidence in the word and intentions of the West, and this is how wars start.

European politicians are putting their countries at great peril and for what gain? Are Europe’s politicians blackmailed, threatened, paid off with bags of money, or are they so accustomed to following Washington’s lead that they are unable to do anything else? How do Germany, UK, and France benefit from being forced into a confrontation with Russia by Washington?

Washington’s arrogance is unprecedented and is capable of driving the world to destruction. Where is Europe’s sense of self-preservation? Why hasn’t Europe issued arrest warrants for every member of the Obama regime? Without the cover provided by Europe and the presstitute media, Washington would not be able to drive the world to war.

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ECONOMY DESTROYED -- THE ENEMY IS WASHINGTON ...SO SAYS ASSISTANT SECRETARY OF U.S. TREASURY UNDER REAGAN AND FORMER WALL STREET JOURNAL EDITOR, PAUL CRAIG ROBERTS

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July 22, 2011 at 00:12:16

Promoted to Headline (H3) on 7/22/11:      

Permalink

An Economy Destroyed -- The Enemy Is Washington

By paul craig roberts (about the author)

OpEdNews.com

Recently, the bond rating agencies that gave junk derivatives triple-A ratings threatened to downgrade US Treasury bonds if the White House and Congress did not reach a deficit reduction deal and debt ceiling increase. The downgrade threat is not credible, and neither is the default threat. Both are make-believe crises that are being hyped in order to force cutbacks in Medicare, Medicaid, and Social Security.

If the rating agencies downgraded Treasuries, the company executives would be arrested for the fraudulent ratings that they gave to the junk that Wall Street peddled to the rest of the world. The companies would be destroyed and their ratings discredited. The US government will never default on its bonds, because the bonds, unlike those of Greece, Spain, and Ireland, are payable in its own currency. Regardless of whether the debt ceiling is raised, the Federal Reserve will continue to purchase the Treasury's debt. If Goldman Sachs is too big to fail, then so is the US government.

There is no budget focus on the illegal wars and military occupations that the US government has underway in at least six countries, or the 66-year old US occupations of Japan and Germany and the ring of military bases being constructed around Russia. The total military/security budget is in the vicinity of $1.1-$1.2 trillion, or 70% -75% of the federal budget deficit.

In contrast, Social Security is solvent. Medicare expenditures are coming close to exceeding the 2.3% payroll tax that funds Medicare, but it is dishonest for politicians and pundits to blame the US budget deficit on "entitlement programs."

Entitlements are funded with a payroll tax. Wars are not funded. The criminal Bush regime lied to Americans and claimed that the Iraq war would only cost $70 billion at the most and would be paid for with Iraq oil revenues. When Bush's chief economic adviser, Larry Lindsay, said the Iraq invasion would cost $200 billion, the White House Moron fired him. In fact, Lindsay was off by a factor of 20. Economic and budget experts have calculated that the Iraq and Afghanistan wars have consumed $4,000 billion in out-of-pocket and already incurred future costs. In other words, the ongoing wars and occupations have already eaten up the $4 trillion by which Obama hopes to cut federal spending over the next 10 years. Bomb now, pay later.

As taxing the rich is not part of the political solution, the focus is on rewarding the insurance companies by privatizing Medicare at some future date with government subsidized insurance premiums, by capping Medicaid, and by loading the diminishing middle class with additional Social Security tax.

Washington's priorities and those of its presstitutes could not be clearer. President Obama, like George W. Bush before him, both parties in Congress, the print and TV media, and National Public Radio have made it clear that war is a far more important priority than health care and old age pensions for Americans.

The American people and their wants and needs are not represented in Washington. Washington serves powerful interest groups, such as the military/security complex, Wall Street and the banksters, agribusiness, the oil companies, the insurance companies, pharmaceuticals, and the mining and timber industries. Washington endows these interests with excess profits by committing war crimes and terrorizing foreign populations with bombs, drones, and invasions; by deregulating the financial sector and bailing it out of its greed-driven mistakes after it has stolen Americans' pensions, homes, and jobs; by refusing to protect the land, air, water, oceans and wildlife from polluters and despoilers, and by constructing a health-care system with the highest costs and highest profits in the world.

The way to reduce health care costs is to take out gobs of costs and profits with a single-payer system. A private health-care system can continue to operate alongside for those who can afford it.

The way to get the budget under control is to stop the gratuitous hegemonic wars, wars that will end in a nuclear confrontation.

The US economy is in a deepening recession from which recovery is not possible, because American middle class jobs in manufacturing and professional services have been offshored and given to foreigners. US GDP, consumer purchasing power, and tax base have been handed over to China, India, and Indonesia in order that Wall Street, shareholders, and corporate CEOs can earn more.

When the goods and services produced offshore come back into America, they arrive as imports. The trade balance worsens, the US dollar declines further in exchange value, and prices rise for Americans, whose incomes are stagnant or falling.

This is economic destruction. It always occurs when an oligarchy seizes control of a government. The short-run profits of the powerful are maximized at the expense of the viability of the economy.

The US economy is driven by consumer demand, but with 22.3% unemployment, stagnant and declining wages and salaries, and consumer debt burdens so high that consumers cannot borrow to spend, there is nothing to drive the economy.

Washington's response to this dilemma is to increase the austerity! Cutting back Medicare, Medicaid, and Social Security, forcing down wages by destroying unions and offshoring jobs (which results in a labor surplus and lower wages), and driving up the prices of food and energy by depreciating the dollar further erodes consumer purchasing power. The Federal Reserve can print money to rescue the crooked financial institutions, but it cannot rescue the American consumer.

As a final point, confront the fact that you are even lied to about "deficit reduction." Even if Obama gets his $4 trillion "deficit reduction" over the next decade, it does not mean that the current national debt will be $4 trillion less than it currently is. The "reduction" merely means that the growth in the national debt will be $4 trillion less than otherwise. Regardless of any "deficit reduction," the national debt 10 years from now will be much higher than it presently is.

Paul Craig Roberts was an editor of the Wall Street Journal and an Assistant Secretary of the U.S. Treasury.  His latest book, HOW THE ECONOMY WAS LOST, has just been published by CounterPunch/AK Pres

Paul Craig Roberts: "Of all the countries in the world, none need a revolution as bad as the United States -- a country ruled by a handful of selfish oligarchs who have more income and wealth than can be spent in a lifetime."

February 17, 2011 at 23:18:22

Obama's FY 2012 Budget Is A Tool Of Class War

By Paul Craig Roberts

opednews.com

Obama's new budget is a continuation of Wall Street's class war against the poor and middle class. Wall Street wasn't through with us when the banksters sold their fraudulent derivatives into our pension funds, wrecked Americans' job prospects and retirement plans, secured a $700 billion bailout at taxpayers' expense while foreclosing on the homes of millions of Americans, and loaded up the Federal Reserve's balance sheet with several trillion dollars of junk financial paper in exchange for newly created money to shore up the banks' balance sheets. The effect of the Federal Reserve's "quantitative easing" on inflation, interest rates, and the dollar's foreign exchange value are yet to hit. When they do, Americans will get a lesson in poverty.

Now the ruling oligarchies have struck again, this time through the federal budget. The U.S. government has a huge military/security budget. It is as large as the budgets of the rest of the world combined. The Pentagon, CIA, and Homeland Security budgets account for the $1.1 trillion federal deficit that the Obama administration forecasts for fiscal year 2012. This massive deficit spending serves only one purpose -- the enrichment of the private companies that serve the military/security complex. These companies, along with those on Wall Street, are who elect the U.S. government.

The U.S. has no enemies except those that the U.S. creates by bombing and invading other countries and by overthrowing foreign leaders and installing American puppets in their place.

China does not conduct naval exercises off the California coast, but the U.S. conducts war games in the China Sea off China's coast. Russia does not mass troops on Europe's borders, but the U.S. places missiles on Russia's borders. The U.S. is determined to create as many enemies as possible in order to continue its bleeding of the American population to feed the ravenous military/security complex.

The U.S. government actually spends $56 billion a year, that is, $56,000 million, in order that American air travelers can be porno-scanned and sexually groped so that firms represented by former Homeland Security Secretary Michael Chertoff can make large profits selling the scanning equipment.

With a perpetual budget deficit driven by the military/security complex's desire for profits, the real cause of America's enormous budget deficit is off-limits for discussion.

The U.S. Secretary of War-Mongering, Robert Gates, declared: "We shrink from our global security responsibilities at our peril." The military brass warns of cutting any of the billions of aid to Israel and Egypt, two functionaries for its Middle East "policy."

But what are "our" global security responsibilities? Where did they come from? Why would America be at peril if America stopped bombing and invading other countries and interfering in their internal affairs? The perils America faces are all self-created.

The answer to this question used to be that otherwise we would be murdered in our beds by "the worldwide communist conspiracy." Today the answer is that we will be murdered in our airplanes, train stations, and shopping centers by "Muslim terrorists" and by a newly created imaginary threat -- "domestic extremists," that is, war protesters and environmentalists.

The U.S. military/security complex is capable of creating any number of false-flag events in order to make these threats seem real to a public whose intelligence is limited to TV, shopping mall experiences, and football games.

So Americans are stuck with enormous budget deficits that the Federal Reserve must finance by printing new money, money that sooner or later will destroy the purchasing power of the dollar and its role as world reserve currency. When the dollar goes, American power goes.

For the ruling oligarchies, the question is: how to save their power.

Their answer is: make the people pay.

And that is what their latest puppet, President Obama, is doing.

With the U.S. in the worst recession since the Great Depression, a great recession that John Williams and Gerald Celente, along with myself, have said is deepening, the "Obama budget" takes aim at support programs for the poor and out-of-work. The American elites are transforming themselves into idiots as they seek to replicate in America the conditions that have led to the overthrows of similarly corrupt elites in Tunisia and Egypt and mounting challenges to U.S. puppet governments elsewhere.

All we need is a few million more Americans with nothing to lose in order to bring the disturbances in the Middle East home to America. With the U.S. military bogged down in wars abroad, an American revolution would have the best chance of success.

American politicians have to fund Israel as the money returns in campaign contributions. The U.S. government must fund the Egyptian military if there is to be any hope of turning the next Egyptian government into another American puppet that will serve Israel by continuing the blockade of the Palestinians herded into the Gaza ghetto.

These goals are far more important to the American elite than Pell Grants that enable poor Americans to obtain an education, or clean water, or community block grants, or the low income energy assistance program (cut by the amount that U.S. taxpayers are forced to give to Israel).

There are also $7,700 million of cuts in Medicaid and other health programs over the next five years.

Given the magnitude of the U.S. budget deficit, these sums are a pittance. The cuts will have no effect on U.S. Treasury financing needs. They will put no brakes on the Federal Reserve's need to print money in order to keep the U.S. government in operation.

These cuts serve one purpose: to further the Republican Party's myth that America is in economic trouble because of the poor: The poor are shiftless. They won't work. The only reason unemployment is high is that the poor had rather be on welfare.

A new addition to the welfare myth is that recent middle-class college graduates won't take the jobs offered them, because their parents have too much money, and the kids like living at home without having to do anything. A spoiled generation, they come out of university refusing any job that doesn't start out as CEO of a Fortune 500 company. The reason that engineering graduates do not get job interviews is that they do not want them.

What all this leads to is an assault on "entitlements," which means Social Security and Medicare. The elites have programmed, through their control of the media, a large part of the population, especially those who think of themselves as conservatives, to conflate "entitlements" with welfare. America is going to hell not because of foreign wars that serve no American purpose, but because people, who have paid 15% of their payrolls all their lives for old age pensions and medical care, want "handouts" in their retirement years. Why do these selfish people think that working Americans should be forced through payroll taxes to pay for the pensions and medical care of the retirees? Why didn't the retirees consume less and prepare for their own retirement?

The elite's line, and that of their hired spokespersons in "think tanks" and universities, is that America is in trouble because of its retirees.

Too many Americans have been brainwashed to believe that America is in trouble because of its poor and its retirees. America is not in trouble for that reason.*  The real trouble is the corporate-controlled media coercing a dwindling number of taxpayers to support the military/security complex's enormous profits, American puppet governments abroad, and Israel.

The American elite's solution for America's problems is not merely to foreclose on the homes of Americans whose jobs were sent offshore, but to add to the numbers of distressed Americans with nothing to lose the sick and the dispossessed retirees, and the university graduates who cannot find the jobs that have been sent to China and India.

Of all the countries in the world, none need a revolution as bad as the United States -- a country ruled by a handful of selfish oligarchs who have more income and wealth than can be spent in a lifetime.

* This sentence was inserted by the blogger together with a modification of the sentence that follows it, without changing the meaning of the paragraph. Approval for this change was granted by the author.

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Paul Craig Roberts was an editor of the Wall Street Journal and an Assistant Secretary of the U.S. Treasury. His latest book, HOW THE ECONOMY WAS LOST, has just been published by CounterPunch/AK Pres

Paul Craig Roberts: "You don't have to be smart to see that Wall Street's and the government's response to the amazing US budget deficit is not to stop the senseless wars and bailouts of mega-millionaires, but to cut 'entitlements'."

Deceptive Economic Statistics: While the economists lied the US economy died

August 17, 2010 at 18:08:41
opednews.com

For OpEdNews: Paul Craig Roberts - Writer

On August 17, Bloomberg reported a US government release that industrial production rose twice as much as forecast, climbing 1 percent. Bloomberg interpreted this to mean that "increased business investment is propelling the gains in manufacturing, which accounts for 11 percent of the world's largest economy."

The stock market rose.

Let's look at this through the lens of statistician John Williams of shadowstats.com. Williams reports that "the primary driver of a 1.0% monthly gain in seasonally-adjusted July industrial production" was "warped seasonal factors" caused by "the irregular patterns in U.S. auto production in the last two years." Industrial production "shrank by 1.0% before seasonal adjustments."

If the government and Bloomberg had announced that industrial production fell by 1.0% in July, would the stock market have risen 104 points on August 17?

Notice that Bloomberg reports that manufacturing accounts for 11 percent of the US economy. I remember when manufacturing accounted for 18% of the US economy. The decline of 39% is due to jobs offshoring.

Think about that. Wall Street and shareholders and executives of transnational corporations have made billions by moving 39% of US manufacturing offshore to boost the GDP and employment of foreign countries, such as China, while impoverishing their former American work force. Congress and the economics profession have cheered this on as "the New Economy."

Bought-and-paid-for-economists told us that "the new economy" would make us all rich, and so did the financial press. We were well rid, they claimed, of the "old" industries and manufactures, the departure of which destroyed the tax base of so many American cities and states and the livelihood of millions of Americans.

The bought-and-paid-for-economists got all the media forums for a decade. While they lied, the US economy died.

Now, back to statistical deception. On August 17, the census Bureau reported a small gain in July 2010 residential construction housing starts. More hope orchestrated. In fact, the "gain," as John Williams reports, was due to a large downward revision" in June's reporting. The reported July "gain" would "have been a contraction" without the downward revision in June's "gain."

So, the overestimate of June housing not only made June look good, but also the downward correction of the June number makes July look good, because starts rose above the corrected June number. The same manipulation is likely to happen again next month.

If the government will lie to you about Iraqi weapons of mass production, Iranian nukes, and 9/11, why won't they lie to you about the economy?

We now have an all-time high of Americans on food stamps, 40.8 million people, about 14% of the population. By next year the government estimates that food stamp dependency will rise to 43 million Americans. So last week Congress cut food stamp benefits. Let them eat cake.

Wherever one looks -- food stamps, home foreclosures, bankrupted states, mounting joblessness -- the message to long-suffering Americans from "their government" is the same: go eat cake, while we fight wars for Israel that enrich the military/security complex, and while we bail out banksters whose annual incomes are in the tens of millions of dollars and up.

It is impossible to get any truth out of the US government about anything. If private companies used US government accounting, the executives would be prosecuted, convicted, and incarcerated.

"Our government" is committed to fighting wars to enrich the military/security complex and Israel's territorial expansion at the expense of cuts in Social Security and Medicare. All most members of Congress, especially Republicans, want to do is to pay for the pointless wars by cutting Social Security and Medicare.

When they worry about the deficit, it is usually Social Security and Medicare -- so-called "entitlements" that are in the crosshairs.

You don't have to be smart to see that Wall Street's and the government's response to the amazing US budget deficit is not to stop the senseless wars and bailouts of mega-millionaires, but to cut "entitlements."

I will end this column on unemployment. "Our government" tells us that the unemployment rate is just under 10 percent, a figure that would have wrecked any post-Great Depression administration. But, again, "our government" is lying. The reported unemployment rate is just below 10% because the US government no longer, since the corrupt Clinton administration, counts Americans who have been unemployed for longer than one year. Once the unemployed hit one year and one day, they are dropped from the unemployment roles and no longer counted as unemployed.

Compare this fact with the number you read from the financial press. Right now, if measured according to the methodology of 1980, the US unemployment rate is about 22%. Thus, the reported rate of unemployment hides more than half of the unemployed.

And, in the August 2 New York Times,Secretary Treasury Tim Geithner welcomed us to "the recovery."

Utterly amazing.

Is there a government anywhere that less represents its citizens than the US government? Paul Craig Roberts asks ...and answers.

Original article in CounterPunch.
August 19, 2009

Americans: Serfs Ruled by Oligarchs

By PAUL CRAIG ROBERTS

“In a little time [there will be] no middling sort. We shall have a few, and but a very few Lords, and all the rest beggars.” R.L. Bushman

“Rapidly you are dividing into two classes--extreme rich and extreme poor.” “Brutus”

Americans think that they have “freedom and democracy” and that politicians are held accountable by elections. The fact of the matter is that the US is ruled by powerful interest groups who control politicians with campaign contributions. Our real rulers are an oligarchy of financial and military/security interests and AIPAC, which influences US foreign policy for the benefit of Israel.

Have a look at economic policy. It is being run for the benefit of large financial concerns, such as Goldman Sachs.

It was the banks, not the millions of Americans who have lost homes, jobs, health insurance, and pensions, that received $700 billion in TARP funds. The banks used this gift of capital to make more profits. In the middle of the worst economic downturn since the Great Depression, Goldman Sachs announced record second quarter profits and large six-figure bonuses for every employee.

The Federal Reserve’s low interest rate policy is another gift to the banks. It lowers their cost of funds and increases their profits. With the repeal of the Glass-Steagall Act in 1999, banks became high-risk investment houses that trade financial instruments such as interest rate derivatives and mortgage backed securities. With abundant funds supplied virtually free by the Federal Reserve, banks are paying depositors virtually nothing on their savings.

Despite the Federal Reserve’s low interest rate policy, beginning October 1 banks are raising the annual percentage rate (APR) on credit card purchases and cash advances and on balances that have a penalty rate because of late payment. Banks are also raising the late fee. In the midst of the worst economy since the 1930s, heavily indebted Americans, who are losing their jobs and their homes, are to be bled into bankruptcy by the very banks that are being subsidized with TARP funds and low interest rates.

Moreover, it is the American public that is on the hook for the TARP money and the low interest rates. As the US government’s budget is 50 per cent or more in the red, the TARP money has to be borrowed from abroad or monetized by the Fed. This means more pressure on the US dollar’s exchange value and a rise in import prices and also domestic inflation.

Americans will thus pay for the TARP and low interest rate subsidies to their financial rulers with erosion in the purchasing power of the dollar. What we are experiencing is a massive redistribution of income from the American public to the financial sector.

And this is occurring during a Democratic administration headed by America’s first black president, with a Democratic majority in the House and Senate.

Is there a government anywhere that less represents its citizens than the US government?

Consider America’s wars. As of the moment of writing, the out-of-pocket cost of America’s wars in Iraq and Afghanistan is $900,000,000,000. When you add in the already incurred future costs of veterans benefits, interest on the debt, the forgone use of the resources for productive purposes, and such other costs as computed by Nobel economist Joseph Stiglitz and Harvard University budget expert Linda Bilmes, “our” government has wasted $3,000,000,000,000--three thousand billion dollars--on two wars that have no benefit whatsoever for any American whose income does not derive from the military/security complex, about which five-star general President Eisenhower warned us.

It is now a proven fact that the US invasion of Iraq was based on lies and deception of the American public. The only beneficiaries were the armaments industries, Blackwater, Halliburton, military officers who enjoy higher rates of promotion during war, and Muslim extremists whose case the US government proved by its unprovoked aggression against Muslims. No one else benefitted. Iraq was a threat to no one, and finding Saddam Hussein and executing him after a kangaroo trial had no effect whatsoever on ending the war or preventing the start of others.

The cost of America’s wars is a huge burden on a bankrupt country, but the cost incurred by veterans might be even higher. Homelessness is a prevalent condition of veterans, as is post-traumatic stress. American soldiers, who naively fought for the munitions industry’s wars, for high compensation for the munitions CEOs, and for dividends and capital gains for the munitions shareholders, paid not only with lives and lost limbs, but also with broken marriages, ruined careers, psychiatric disorders, and prison sentences for failing to make child support payments.

What did Americans gain from an unaffordable war in Iraq that lasted far longer than World War II and that put into power Shi’ites allied with Iran?

The answer is obvious: nothing whatsoever.

What did the armaments industry gain? Billions of dollars in profits.

Obama is the presidential candidate who promised to end the war in Iraq. He hasn’t. But he has escalated the war in Afghanistan, started a new war in Pakistan, intends to repeat the Yugoslav scenario in the Caucasus, and appears determined to start a war in South America. In response to the acceptance by US puppet president of Columbia, Alvaro Uribe, of seven US military bases in Columbia, Venezuela warned South American countries that the “winds or war are beginning to blow.”

Here we have the US government, totally dependent on the generosity of foreigners to finance its red ink, which extends in large quantities as far as the eye can see, completely under the thumb of the military/security complex, which will destroy us all in order to meet Wall Street share price expectations.

Why does any American care who rules Afghanistan? The country has nothing to do with us.

Did the armed services committees of the House and Senate calculate the risk of destabilizing nuclear armed Pakistan when they acquiesced to Obama’s new war there, a war that has already displaced two million Pakistanis?

No, of course not. The whores took their orders from the same military/security oligarchy that instructed Obama.

The great American superpower and its 300 million people are being driven straight into the ground by the narrow interest of the big banks and the munitions industry. People, and not only Americans, are losing their sons, husbands, brothers, and fathers for no other reason than the profits of US armaments corporations, and the gullible American people seem proud of it. Those ribbon decals on their cars, SUVs and monster trucks proclaim their naive loyalty to the armaments industries and to the whores in Washington who promote wars.

Will Americans, smashed and destroyed by “their” government’s policy, which always puts Americans last, ever understand who their real enemies are?

Will Americans realize that they are not ruled by elected representatives but by an oligarchy that owns the Washington whorehouse?

Will Americans ever understand that they are impotent serfs?

Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration. He is coauthor of The Tyranny of Good Intentions. This fall CounterPunch/AK Press will publish Robert's War of the Worlds: How the Economy Was Lost. He can be reached at: PaulCraigRoberts@yahoo.com