Showing posts with label paul craig roberts. Show all posts
Showing posts with label paul craig roberts. Show all posts

Wednesday, August 24, 2016

Paul Craig Roberts begins this all to true issue with this paragraph: "Acquaintances of my generation are puzzled by the disappearance of the American left. They remember when there was far less war, far less monopoly capitalist theft, a less rich and powerful elite, less police violence against civilians, less militarization, less privatization and deregulation, fewer attacks on the social safety net, less propaganda from the media, and yet, despite the milder state of affairs, the leftwing was present raising hell about it all." NB, The bloger is of the very same generation, and he too laments the disappeance of the left just when we need it most.


What Became of the Left? — Paul Craig Roberts 

August 19, 2016 | Original Here | If you wish to receive his newsletter via email go to Original and sign up at bottom.

What Became of the Left?

Paul Craig Roberts

Acquaintances of my generation are puzzled by the disappearance of the American left.

They remember when there was far less war, far less monopoly capitalist theft, a less rich and powerful elite, less police violence against civilians, less militarization, less privatization and deregulation, fewer attacks on the social safety net, less propaganda from the media, and yet, despite the milder state of affairs, the leftwing was present raising hell about it all.

For fifteen years, and more if we go back to the Clinton regime’s destruction of Yugoslavia, the US has been engaged in wars on populations in seven—eight counting Yugoslavia/Serbia—countries, causing millions of deaths, disabled, and dislocated peoples. A police state has been created, the US Constitution stripped of its protective features, and massive crimes committed under both US and international law by three administrations. These crimes include torture, transparent false flag events, naked aggression (a war crime), spying without warrants, and murder of US citizens. Yet, the leftwing’s voice is barely heard.

Clearly, my acquaintances are beginning to miss the challenge to explanations and the country’s direction that the left formerly provided. I know how they feel. We used to be pushed along by biases and stereotypical thinking, and the left was there to rattle our cage. Now we are pushed along by propaganda and there is no countervailing force except a few Internet voices.

I remember telling the audience in the Q&A session after my Frank M. Engle Lecture in 1992 that I never realized how much we would miss US Supreme Court Justices Brennan and Marshall.

Today we need a leftwing far more desperately than we did when we had one. Today governments considered democratic have the powers of a dictatorship. In the United States, for example, habeas corpus has been erased from both law and Constitution. Even worse, White House officials can create lists of citizens to be murdered without due process of law. These are the powers of a dictator. Yet, these attributes of dictatorship are now institutionalized and go unremarked.

One would think that the dispossessed American workers, whose jobs and financial security have been moved offshore and given to foreigners, would be protesting in the streets like the French do. But not a peep. When presidential candidate Ross Perot warned American workers of what was about to happen to them, they did not have enough confidence to vote for him. Have the dispossessed American workers gained enough sense—or is the problem a lack of leadership—to vote for Trump who acknowledges the job loss that is eroding the prospects of the 99 percent? If Trump does not intend to deliver or is incapable of delivering, we are still better off because a failure to deliver raises the awareness of the people.

From the standpoint of the left, there is a perfect environment for them in present day America. So where is the left?

Here is my answer to the question. The left suffered a tremendous blow when the Soviet Union collapsed. The Soviet collapse deprived the left of its belief that there was an alternative to American “democratic capitalism.” The Soviet collapse also disheartened the left because the collapse removed any constraint on Washington’s unilateralism. With China shaking off Mao and moving into the capitalist camp, there was no one to pick up the torch.

People are puzzled why the left goes along with the government’s explanations of what appear to be orchestrated false flag terror events. If people of no political persuasion, such as architects and engineers, physicists, nano-chemists, firemen and first responders, airline and military pilots, challenge on the basis of evidence the official account of 9/11, why does the leftwing defend the account of a government that in other circumstances the left distrusts 120%? The left knows that Tonkin Gulf was an orchestration for war, that Saddam Hussein had no “weapons of mass destruction,” that Iran had no nukes. The left knows that the government lies through its teeth, so why does the left believe the government’s improbable conspiracy theory of 9/11?

The answer, I think, is that with the demise of Marxism, the left’s only hope is that the peoples oppressed by the West will rise up. The left finds huge emotional satisfaction in 9/11 as blowback of the oppressed against the oppressor. This is why the left clings to the official story of 9/11. And to the stories of other “terrorist events,” such as Orlando and Nice despite the lack of any real evidence in behalf of the stories.

I can remember when the American left, if told that a large truck traveling at a reported 56 miles per hour had mowed down 185 people and, then, being shown in the immediate aftermath the truck devoid of a spot of blood, clothing, human flesh, or even a small dent, would have shouted down the obviously false account.

Ask someone who has hit a dog at 56 mph about the blood and damage to the car. Ask someone who has hit a deer and the car is totaled. Ask experts if a large truck hit a person at 56 mph if the person’s body would remain intact and could be viewed lying without any apparant damage or blood in the street.

You don’t need to ask, do you? You see the point. The force of a large truck moving at 56 mph that hits a human is going to splatter that human all over the street. Yet, the Nice photos show no such event.

I can remember when the American left, if told by a Nice police official that the French Minister of the Interior in Paris had ordered Nice authorities not to release and to immediately destroy the entire filming of the alleged terror event from security cameras posted along the entire street where allegedly 185 people were hit by a truck and, additionally, to falsify the police report of the event, the left would have been demanding blood from the authorities, not calling those who do demand explanations “conspiracy kooks.”

Today the American left wants to shut down those who do raise questions about such very strange events in which a few Saudis who could not fly airplanes prevailed over the American National Security State and in which 185 people are allegedly hit by a large truck but the photos show no such results and the Paris officials order the destruction of the recorded evidence and the falsification of the report.

The official story of 9/11 is the justification for the wars. It is difficult to oppose wars when you accept the reason for them. By accepting the government’s 9/11 conspiracy theory, the leftwing killed the antiwar movement.

Why does the left trust the government precisely on those matters that the government uses to justify war and a police state? The answer is that those who challenge the official story deprive the left of the emotional satisfaction that comes from the belief that oppressed peoples are capable of striking back and do strike back. Alexander Cockburn once explained this to me himself. He said that when I report the challenges of experts to the official 9/11 story, I am taking away the dignity of oppressed peoples by assuming that they do not strike back against their oppressors. Alex could not accept the truth, because it meant that the oppressed acquiesced in their oppression.

I understand how Alex saw it. I understand the importance to any movement of hope, and I regret that the left has positioned itself such that facts undermine hope, causing the left to come out against facts.

I offer the left, or the simulacrum that remains, a different hope: trust the power of truth. Don’t defend the oppressor, attack him, and as you attack him your might will grow. People are not forever fools. A time comes when their personal situation contradicts the story fed to them. But if there is no leadership, awareness cannot graduate into revolt.

The West needs a strong leftwing movement with the strength to challenge the lies that are leading the world to a war of extinction of life. I would prefer a reformist left to a revolutionary one, but this is not to say that a revolutionary left is not preferable to what exists today, which is revolutionary neoconservatism without opposition from a countervailing force.



Monday, April 18, 2016

Paul Craig Roberts is just one year younger than me and we both took 4-year degrees from technical universities, mine from Carnegie Tech, his from Georgia Tech. We both took 6 years to get our PhDs, mine in Physics from Brown University, his in Economics from the University of Virginia ...after spending his last year in Oxford. After being a post doc I became a midlevel government employee at the Naval Research Laboratory and Washington, DC, whereas he began as a member of Congressional Staff (also DC) and rose to Assistant Secretary for Economic Policy under Ronald Reagan. At the time I scoffed at Reagan as being a movie actor rather than what it takes to be President of the USA. However, PCR has made the point that Reagan may be the only American President ever to stop a war, rather than start one. And PCR, being an academic had many university appointments and took part in many high-level think tanks, where he met face-to-face all of the neocons that are today pushing for an all-out war with Russia and China …which if it reaches an exchange of nuclear weapons would likely kill us all. For this reason, dear reader, please read my re-post below of PCR’s latest blog and mention it to your friends, because they will never hear of it from the despicable “mainstream media” (who PCR terms “presstitutes”).


How The American Neoconservatives Destroyed Mankind’s Hopes For Peace — Paul Craig Roberts

April 18, 2016 | Original Here | If you wish to receive his newsletter via email go to Original and sign up at bottom.

How The American Neoconservatives Destroyed Mankind’s Hopes For Peace


Paul Craig Roberts


When Ronald Reagan turned his back on the neoconservatives, fired them, and had some of them prosecuted, his administration was free of their evil influence, and President Reagan negotiated the end of the Cold War with Soviet President Gorbachev. The military/security complex, the CIA, and the neocons were very much against ending the Cold War as their budgets, power, and ideology were threatened by the prospect of peace between the two nuclear superpowers.


I know about this, because I was part of it. I helped Reagan create the economic base for bringing the threat of a new arms race to a failing Soviet economy in order to pressure the Soviets into agreement to end the Cold War, and I was appointed to a secret presidential committee with subpeona power over the CIA. The secret committee was authorized by President Reagan to evaluate the CIA’s claim that the Soviets would prevail in an arms race. The secret committee concluded that this was the CIA’s way of perpetuting the Cold War and the CIA’s importance.


The George H. W. Bush administration and its Secretary of State James Baker kept Reagan’s promises to Gorbachev and achieved the reunification of Germany with promises that NATO would not move one inch to the East.


The corrupt Clintons, for whom the accumulation of riches seems to be their main purpose in life, violated the assurances given by the United States that had ended the Cold War. The two puppet presidents—George W. Bush and Obama—who followed the Clintons lost control of the US government to the neocons, who promptly restarted the Cold War, believing in their hubris and arrogance that History has chosen the US to exercise hegemony over the world.


Thus was mankind’s chance for peace lost along with America’s leadership of the world. Under neocon influence, the United States government threw away its soft power and its ability to lead the world into a harmonious existance over which American influence would have prevailed.


Instead the neocons threatened the world with coercion and violence, attacking eight countries and fomenting “color revolutions” in former Soviet republics.


The consequence of this crazed insanity was to create an economic and military strategic alliance between Russia and China. Without the neocons’ arrogant policy, this alliance would not exist. It was a decade ago that I began writing about the strategic alliance between Russia and China that is a response to the neocon claim of US world hegemony. http://www.rense.com/general77/tus.htm


The strategic alliance between Russia and China is militarily and economically too strong for Washington. China controls the production of the products of many of America’s leading corporations, such as Apple. China has the largest foreign exchange reserves in the world. China can, if the government wishes, cause a massive increase in the American money supply by dumping its trillions of dollars of US financial assets.


To prevent a collapse of US Treasury prices, the Federal Reserve would have to create trillions of new dollars in order to purchase the dumped financial instruments. The rest of the world would see another expansion of dollars without an expansion of real US output and become skepical of the US dollar. If the world abandoned the US dollar, the US government could no longer pay its bills.


Europe is dependent on Russian energy. Russia can cut off this energy. There are no alternatives in the short-run, and perhaps not in the long run. If Russia shuts off the energy, Germany industry shuts down. Europeans freeze to death in the winter. Despite these facts, the neocons have forced Europe to impose economic sanctions on Russia. What if Russia responded in kind?


NATO, as US military authorities admit, has no chance of invading Russia or withstanding a Russian attack on NATO. NATO is a cover for Washington’s war crimes. It can provide no other service.


Thanks to the greed of US corporations that boosted their profits by offshoring their production to China, China is moderinized many decades before the neocons thought possible. China’s military forces are moderized with Russian weapons technology. New Chinese missiles make the vaunted US Navy and its aircraft carriers obsolete.


The neocons boast how they have surrounded Russia, but it is America that is surrounded by Russia and China, thanks to the incompetent leadership that the US has had beginning with the Clintons. Judging from Killary’s support in the current presidential primaries, many voters seem determined to perpetuate incompetent leadership.


Despite being surrounded, the neocons are pressing for war with Russia which means also with China. If Killary Clinton makes it to the White House, we could get the neocon’s war.


The neocons have flocked to the support of Killary. She is their person. Watch the feminized women of America put Killary in office. Keep in mind that Congress gave its power to start wars to the president.


The United States does not have a highly intelligent or well informed population. The US owes its 20th century dominance to World War I and World War II which destroyed more capable countries and peoples. America became a superpower because of the self-destruction of other countries.


Despite neocon denials that their hubris has created a powerful alliance against the US, a professor at the US Navy War College stresses the reality of the Russian-Chinese strategic alliance. http://sputniknews.com/world/20160414/1037981155/russia-china-cooperation.html Last August a joint Russian-Chinese sea and air exercise took place in the Sea of Japan, making it clear to America’s Japanese vassal that it was defenseless if Russia and China so decided.


The Russian defense minister Sergey Shoigu said that the joint exercise illustrates the partnership between the two powers and its stabilizing effect on that part of the world.


Chinese Foreign Minister Wang Yi said that Russian-Chinese relations are able to resist any international crises.


The only achievements of the American neoconservatives are to destroy in war crimes millions of peoples in eight countries and to send the remnant populations fleeing into Europe as refugees, thus undermining the American puppet governments there, and to set back the chances of world peace and American leadership by creating a powerful strategic alliance between Russia and China.


This boils down to extraordinary failure. It is time to hold the neoconservatives accountable, not elect another puppet for them to manipulate.




Wednesday, March 30, 2016

"The Land of the Free and the Home of the Brave"? The later is surely true, but nothing is being done to care for our troops when the survivers return physically or mentally damaged. And if you believe the former is true, read below to learn about how our Constitution has now been virtually destroyed.


Does The United States Still Exist? — Paul Craig Roberts

March 26, 2016 | Original Here | Use original if you wish to receive his newsletter via email

Does The United States Still Exist?
An address delivered to the Libertarian Party of Florida on March 23, 2016 in Destin, Florida

Paul Craig Roberts

To answer the question that is the title, we have to know of what the US consists. Is it an ethnic group, a collection of buildings and resources, a land mass with boundaries, or is it the Constitution. Clearly what differentiates the US from other countries is the US Constitution. The Constitution defines us as a people. Without the Constitution we would be a different country. Therefore, to lose the Constitution is to lose the country.

Does the Constitution still exist? Let us examine the document and come to a conclusion.

The Constitution consists of a description of a republic with three independent branches, legislative, executive, and judicial, each with its own powers, and the Bill of Rights incorporated as constitutional amendments. The Bill of Rights describes the civil liberties of citizens that cannot be violated by the government.

Article I of the Constitution describes legislative powers. Article II describes executive powers, and Article III describes the power of the judiciary. For example, Article I, Section 1 gives all legislative powers to Congress. Article I, Section 8 gives Congress the power to declare war.

The Bill of Rights protects citizens from the government by making law a shield of the people rather than a weapon in the hands of the government.

The First Amendment protects the freedom of speech, the press, and assembly or public protest.

The Second Amendment gives the people the right “to keep and bear arms.”

The Third Amendment has to do with quartering of soldiers on civilians, a large complaint against King George III, but not a practice of present-day armies.


The Fourth Amendment grants “the right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures” and prevents the issue of warrants except “upon probable cause, supported by oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.” The Fourth Amendment prevents police and prosecutors from going on “fishing expeditions” in an effort to find some offense with which to charge a targeted individual.

The Fifth Amendment prohibits double jeopardy, self-incrimination, the taking of life, liberty, or property without due process and the prohibition of seizing property without just compensation.

The Sixth Amendment guarantees speedy and public trial, requires that a defendent be informed of the charge against him and to be confronted with the witnesses, to present witnesses in his favor, and to have the assistance of an attorney.

The Seventh Amendment gives the right of trial by jury to civil suits.

The Eighth Amendment prevents excessive bail and cruel and unusual punishments.

The Ninth Amendment says that the enumeration of certain rights in the Constitution does not deny or disparage others retained by the people. In other words, people have rights in addition to the those listed in the proscriptions against the government’s use of abusive power.

The Tenth Amendment reserves the rights not delegated to the federal government to the states.

The Tenth Amendment is a dead letter amendment. The Third Amendment protects against an abandoned abusive practice of government. The Seventh Amendment is still relevant as it allows damages in civil suits to be determined by a jury, once a protection against unfairness and today not always the case.

The other seven amendments comprise the major protections of civil liberty. I will examine them in turn, but first let’s look at Section 1 and Section 8 of Article I. These two articles describe the major powers of Congress, and both articles have been breached. The Constitution’s grant of “all legislative powers” to Congress has been overturned by executive orders and signing statements. The president can use executive orders to legislate, and he can use signing statements to render sections of laws passed by Congress and signed by the president into non-enforced status. Legislative authority has also been lost by delegating to executive branch officials the power to write the regulations that implement the laws that are passed. The right that Section 8 gives to Congress to declare war has been usurped by the executive branch. Thus, major powers given to Congress have been lost to the executive branch.

The First Amendment has been compromised by executive branch claims of “national security” and by extensive classification. Whistleblowers are relentlessly prosecuted despite federal laws protecting them. The right of assembly and public protest are overturned by arrests, tear gas, clubs, rubber bullets, water cannons, and jail terms. Free speech is also limited by political correctness and taboo topics. Dissent shows signs of gradually becoming criminalized.

The Fourth Amendment is a dead letter amendment. In its place we have warrantless searches, SWAT team home invasions, strip and cavity searches, warrantless seizures of computers and cell phones, and the loss of all privacy to warrantless universal spying.

The Fifth Amendment is a dead letter amendment. The criminal justice system relies on self-incrimination as plea bargains are self-incrimination produced by psychological torture, and plea bargains are the basis of conviction in 97% of all felony cases. Moreover, physical torture is a feature of the “war on terror” despite its illegality under both US statute and international law and is also experienced by inmates in the US prison system.

The Fifth Amendment’s protection against deprivation of life, liberty, and property without due process of law has been lost to indefinite detention, executive assassination, and property takings without compensation. The Racketer Influenced Corrupt Organizations Act (RICO) passed in 1970. The act permits asset freezes, which are takings. The Comprehensive Forfeiture Act passed in 1984 and permits police to confiscate property on “probable cause,” which often means merely the presence of cash.

The Sixth Amendment is a dead letter amendment. Prosecutors routinely withhold exculpatory evidence, and judges at prosecutors’ requests have limited attorneys’ ability to defend clients.The “war on terror” has introduced secret evidence and secret witnesses, making it impossible for a defendant and his attorney to defend against the evidence.

The Eighth Amendment’s prohibition of excessive bail and torture are routinely violated. It is another dead letter amendment.

It is paradoxical that every civil liberty in the Bill of Rights has been lost to a police state except for the Second Amendment, the gun rights of citizens. An armed citizenry is inconsistent with a police state, which the US now is.

Other aspects of our legal protections have been overturned, such as the long standing rule that crime requires intent. William Blackstone wrote: “An unwarrantable act without a vicious will is no crime at all.” But today we have crimes without intent. You can commit a crime and not even know it. See for example, Harvey Silverglate, Three Felonies A Day: How the Feds Target the Innocent.

Attorney-client privilege has been lost. The indictment, prosecution, and imprisonment of defense attorney Lynne Stewart is a good example. The DOJ prevailed on her to defend a blind Muslim regarded by the DOJ as a “terrorist.” She was informed that “special administrative measures” had been applied to her client. She received a letter from the federal prosecutor informing her that she and her client would not be permitted attorney-client privilege, and that she was required to permit the government to listen to her conversations with her client. She was told that she could not carry any communications from her client to the outside world. She regarded all this as illegal nonsense and proceeded to defend her client in accordance with attorney-client privilege. Lynne Stewart was convicted of violating a letter written by a prosecutor as if the prosecutor’s letter were a law passed by Congress and present in the US code. Based on a prosecutor’s letter, Lynne Stewart was sentenced to prison. No law exists that upholds her imprisonment.

Our civil liberties are often said to be “natural rights” to which we are entitled. However, in historical fact civil liberty is a human achievement that required centuries of struggle. The long struggle for accountable law that culminated in the Glorious Revolution in England in the late 17th century can be traced back to Alfred the Great’s codification of English common law in the 9th century and to the Magna Carta in the early 13th century. Instead of issuing kingly edicts, Alfred based law on the traditional customs and behavior of the people. The Glorious Revolution established the supremacy of the people over the law and held the king and government accountable to law. The United States and other former British colonies inherited this accomplishment, an accomplishment that makes law a shield of the people and not a weapon in the hands of the state.

Today law as a shield of the people has been lost. The loss was gradual over time and culminated in the George W. Bush and Obama regime assaults on habeas corpus and due process. Lawrence Stratton and I explain how the law was lost in our book, The Tyranny of Good Intentions. Beginning with Jeremy Bentham in the late 18th century, liberals saw the protective shield of law as a constraint on the government’s ability to do good. Bentham redefined liberty as the freedom of government from restraint, not the freedom of people from government. Bentham’s influence grew over time until in our own day, to use the words of Sir Thomas More in A man for All Seasons, the law was cut down so as to better chase after devils.

We cut down the law so that we could better chase after the Mafia.
We cut down the law so that we could better chase after drug users.
We cut down the law so that we could better chase after child abusers.
We cut down the law so that we could better chase after “terrorists.”
We cut down the law so that we could better chase after whistleblowers.
We cut down the law so that we could better cover up the government’s crimes.


Today the law is cut down. Any one of us can be arrested on bogus charges and be helpless to do anything about it.

There is very little concern in legal circles about this. The American Civil Liberties Union (ACLU) does attempt to defend civil liberty. However, just as often the ACLU is not defending the civil liberties in the Bill of Rights that protect us from the abuse of government power, but newly invented “civil rights” that are not in the Constitution, such as “abortion rights,” the right to homosexual marriage, and rights to preferential treatment for preferred minorities.

An attack on abortion rights, for example, produces a far greater outcry and resistance than the successful attack on habeas corpus and due process. President Obama was able to declare his power to execute citizens by executive branch decision alone without due process and conviction in court, and it produced barely audible protest.

Historically, a government that can, without due process, throw a citizen into a dungeon or summarily execute him is considered to be a tyranny, not a democracy. By any historical definition, the United States today is a tyranny. 



Wednesday, March 16, 2016

Do you know that Janet Yellen has been guiding the Fed based on these faked data? It's like the enginer of a train being told the track ahead is clear when actually another train coming the other way. Moreover, many people who make their money on the stock market believe that the latest drops in the major markets are just minor glichs, whereas in truth the market is doomed to crash for the reasons Paul Craig Roberts explains below. So if you have positions in the stock markets, you should take your money out now and/or buy into quality gold and silver shares.


Another Phony Jobs Report

March 6, 2016 | Original Here | Use original if you wish to receive his newsletter via email

Another Phony Jobs Report  

And if true it is damning


The monthly payroll jobs reports have become a bad joke.
No growth in real retail sales, but 55,000 retail trade new jobs in February.
No growth in real consumer income, but 40,000 more waitresses and bartenders.
86,000 new jobs in Education, health services, and social assistance. February is a strange month to be hiring new teachers. If February brought a quarter million new jobs, how come a big hike in social assistance jobs?
Manufacturing lost 16,000 jobs.






Sunday, March 06, 2016

Dear readers: The post of Paul Craig Roberts that I re-post below has caused me to reflect on a man from Serbia who I met in 2001 when we were both Invited Professors of Research at Universités de Paris 6 et 7. And, with probability near zero, we turned out to be doing the vey same type of research and using the very same spectrometer! (See photo below). We had no trouble sharing the spectrometer and became great friends. Pavle told me that back in Serbia he had taken part in, I think, about 50 demonstrations against the dictator Slobodan Milošević, who was charged with war crimes including genocide and crimes against humanity in connection to the wars in Bosnia, Croatia, and Kosovo. At that time Pavle apparently believed that the NATO attack then in progress was to unseat Milošević. So for a while we used to converse by email and sent each other Christmas photos. Then he broke off all communication with me, not answering any of my subsequent emails. The only conclusion I can come to is that Pavle finally came to realize that NATO (run by the US) was far worse than Milošević and, I suppose, decided that no one from the US could be trusted, however friendly. Think about that for a while…











Murder Is Washington’s Foreign Policy — Paul Craig Roberts

March 4, 2016 | Original Here | Use original if you wish to receive his newsletter via email

Murder Is Washington’s Foreign Policy


Paul Craig Roberts


Washington has a long history of massacring people, for example, the destruction of the Plains Indians by the Union war criminals Sherman and Sheridan and the atomic bombs dropped on Japanese civilian populations, but Washington has progressed from periodic massacres to fulltime massacring. From the Clinton regime forward, massacre of civilians has become a defining characteristic of the United States of America.


Washington is responsible for the destruction of Yugoslavia and Serbia, Afghanistan, Iraq, Libya, Somalia, and part of Syria. Washington has enabled Saudi Arabia’s attack on Yemen, Ukraine’s attack on its former Russian provinces, and Israel’s destruction of Palestine and the Palestinian people.


The American state’s murderous rampage through the Middle East and North Africa was enabled by the Europeans who provided diplomatic and military cover for Washington’s crimes. Today the Europeans are suffering the consequences as they are over-run by millions of refugees from Washington’s wars. The German women who are raped by the refugees can blame their chancellor, a Washington puppet, for enabling the carnage from which refugees flee to Europe.


In the article below Mattea Kramer points out that Washington has added to its crimes the mass murder of civilians with drones and missile strikes on weddings, funerals, children’s soccer games, medical centers and people’s homes. Nothing can better illustrate the absence of moral integrity and moral conscience of the American state and the population that tolerates it than the cavalier disregard of the thousands of murdered innocents as “collateral damage.” http://www.tomdispatch.com/post/176110/tomgram:_mattea_kramer,_the_grief_of_others_and_the_boasts_of_candidates/


If there is any outcry from Washington’s European, Canadian, Australian, and Japanese vassals, it is too muted to be heard in the US.


As Kramer points out, American presidential hopefuls are competing on the basis of who will commit the worst war crimes. A leading candidate has endorsed torture, despite its prohibition under US and international law. The candidate proclaims that “torture works” — as if that is a justification — despite the fact that experts know that it does not work. Almost everyone being tortured will say anything in order to stop the torture. Most of those tortured in the “war on terror” have proven to have been innocents. They don’t know the answers to the questions even if they were prepared to give truthful answers. Aleksandr Solzhenitsyn relates that Soviet dissidents likely to be picked up and tortured by the Soviet secret police would memorize names on gravestones in order to comply with demands for the names of their accomplices. In this way, torture victims could comply with demands without endangering innocents.


Washington’s use of invasion, bombings, and murder by drone as its principle weapon against terrorists is mindless. It shows a government devoid of all intelligence, focused on killing alone. Even a fool understands that violence creates terrorists. Washington hasn’t even the intelligence of fools.


The American state now subjects US citizens to execution without due process of law despite the strict prohibition by the US Constitution. Washington’s lawlessness toward others now extends to the American people themselves.


The only possible conclusion is that under Clinton, George W. Bush, and Obama the US government has become an unaccountable, lawless, criminal organization and is a danger to the entire world and its own citizens.




Wednesday, March 02, 2016

By now the readers of my blog know that Paul Craig Roberts is my main source of materials to repost, and he is my hero. Still, my ability to explain my attachment to him is no match to the kudos that Professor Edward Curtin has writen to honor him in this short essay built around PCR's most recent book.


The Neoconservative Threat To World Order: Washington’s Perilous War For Hegemony


Review of Paul Craig Roberts’ Book

By Prof. Edward Curtin                                                                                                                                       Region:

Global Research, February 28, 2016                                                          Theme: ,  

 



You will rarely read a book written in a more courageous, intelligent, and blunt manner about profoundly pressing world problems than this one.  Paul Craig Roberts is a phenomenon; no issue, no matter how controversial, escapes his astute analysis.  He writes with a tornadic power and logic that convinces as it challenges. Driven by a passionate concern for the horrible direction of the world – especially the United States government’s responsibility for so much of its wretchedness – he is relentless in roiling the waters of ignorance and complacency in which so many Americans float.

A former Assistant Secretary of the Treasury for Economic Policy in the Reagan administration and a columnist for the Wall Street Journal, Paul Craig Roberts (image right) has escaped all easy labels to become a public intellectual of the highest order.  He is a prolific critic of U.S. foreign and domestic policies, with a special emphasis on the nefarious influence of the neoconservatives from the Reagan through the Obama administrations.  A savage critic of the mainstream corporate media – he calls them “presstitutes” – he dissects their propaganda and disinformation like a truth surgeon and penetrates to the heart of issues in a flash.

To Order Dr. Roberts’ Book from Clarity Press, Click Here 

The Neoconservative Threat To World Order is a compendium of his essays written between February 2014 and July 2015.  Most of them deal with Washington’s destabilization of Ukraine and its ongoing threats against Russia.  Roberts sees this new Cold War as rooted in the neoconservative doctrine of world hegemony.  He correctly argues that this is based on the Wolfowitz Doctrine, written in 1992 by neoconservative Undersecretary of Defense Paul Wolfowitz (a signatory of the 1997 Project for the New American Century), which became the blueprint for NATO’s expansion to Russia’s borders and the growing threat of nuclear war that we are faced with today. In the preface he writes:
Once in place the Wolfowitz Doctrine resulted in the Clinton regime abandoning the guarantees that the George H. W. Bush administration had given to Gorbachev that NATO would not move one inch to the East.  In violation of the U.S. government’s word, former Warsaw Bloc countries were incorporated into NATO.  Then NATO was used to attack Yugoslavia and Serbia.  Then the George W. Bush regime withdrew the U.S. from the Anti-Ballistic Missile Treaty and began locating anti-ballistic missile bases on Russia’s borders.  Washington orchestrated “color revolutions” in the former Russian provinces of Georgia and Ukraine.  When the Orange Revolution failed to deliver Ukraine into Washington’s hands, Washington spent $5 billion cultivating Ukrainian politicians and creating pro-American Non-Governmental Organizations (NGOs) that were used in Washington’s 2014 overthrow of the elected government of Ukraine.
Read chronologically, these essays reward a careful reader with an understanding of the progressively menacing steps taken by the Obama administration, including the announcement that the United States is sending battle tanks, heavy equipment, and thousands of troops to be permanently stationed in Eastern European countries surrounding Russia.  If the shoe were on the other foot and Putin was sending the same to Canada, Cuba, and Mexico, one would hear howls of outrage emanating from the New York Times, CNN, and the Washington Post, etc., media stenographers for Washington.

In essay after essay Roberts’ analyses give the lie to the Western media’s misleading reporting on Ukraine and its demonization of Russia.  He sees these developments as leading to war unless the neoconservatives are “removed from foreign policy positions in the government and media …. The warmonger neoconservatives must be removed from Fox ‘News,’ CNN, The New York Times, Washington Post, and Wall Street Journal, and in their places independent voices must replace propagandists for war.  Clearly none of this is going to happen, but it must if we are to escape Armageddon.”

So the reader is enlightened but not encouraged.  But this is not Roberts’ fault.  He is being truthful.  He is a Cassandra warning of future disasters if people don’t awaken from “a false reality created for them by their rulers.”  He admits that he struggles with people’s reluctance to seek truth every time he writes a clarifying essay.  Yet he is of two minds – hopeless and hopeful. He intimates that even if people awaken, the neoconservatives will maintain their power in government and media.  Yet he stalwartly soldiers on, hoping to change minds, which suggests he believes at some level that changing minds has a chance of changing structures of power and ideology. His vacillation in this regard is understandable.

“People ask for solutions,” he writes, “but no solutions are possible in a dis-informed world.  Populations almost everywhere are dissatisfied, but few have any comprehension of the real situation.  Before there can be solutions, people must know the truth about the problem. For those inclined to be messengers, it is largely a thankless task …. Aspirations and delusions prevail over truth.”

Thankless as the task may be, Roberts elucidates many issues besides Ukraine, so these essays can also be read as self-standing analyses: 9/11 and the anthrax attacks, the case for impeachment of U.S. presidents, war crimes by U.S. officials, American “exceptionalism,” Operation Gladio, “Washington’s Iraq ‘Victory’,” European governments’ collusion with the U.S., the CIA and its media control, the Charlie Hebdo attacks, the war on terror, false flag attacks, etc.   His reach is capacious and his analysis penetrating.  He questions, probes, presents facts, and admits when facts are not conclusive.  Impeccably logical – and straightforward – he forces the reader to reevaluate their understanding of these issues. And he references other fine writers and researchers who support and extend his points.

While correct about the rise in power and evil influence of the neoconservatives over the past thirty years or so, I think Roberts’ understanding of the machinations of secret deep state forces going back to Operation Gladio and the assassinations of JFK, RFK, and MLK, suggests he knows that the neocons are but a recent example of an old problem. The US drive for hegemony has deep roots and a long history.  Wall Street, the banks, and the CIA have been entwined for many, many decades. Overthrowing governments, propaganda, assassinations, and instigating wars are their specialty. None of this is the exclusive bailiwick of neoconservatives; they are just a current, execrable example. Behind them, and liberals and conservatives of all stripes, sit powers that transcend nomenclature. I’d like to see him give more emphasis to U.S. strategy as a long-standing continuum, though this does not detract from his astute analysis of the neoconservatives.  After all, these essays were written on the fly as the neocons policies were being carried out by the “liberal” Democrat Obama.

Dr. Roberts is a truth teller and a genuine patriot. Truth is his country. In a speech he gave in Mexico while accepting the International Award for Excellence in Journalism, he said, “In the United States journalists receive awards for lying for the government and the corporations…. Once a journalist sacrifices Truth to loyalty to a government, he ceases to be a journalist and becomes a propagandist.”

So if you want truth, read The Neoconservative Threat to World Order.  It’s journalism at its best.

The original source of this article is Global Research
Copyright © Prof. Edward Curtin, Global Research, 2016

Thursday, January 14, 2016

Most of us were taught as kids that the United States of America is the greatest country in the world ...and perhaps many, if not most, of us still think it is. Here Paul Craig Roberts (who once was the Assistant Secretary of the Treasury for Economic Policy under Ronald Reagan and an Editor of the Wall Street Journal) tells you why we now should know that "The US Government Is The Most Complete Criminal Organization In Human History."


The Proof Is In: The US Government Is The Most Complete Criminal Organization In Human History — Paul Craig Roberts

January 9, 2016 | Original Here                                            Go here to sign up to receive email notice of this news letter

The Proof Is In: The US Government Is The Most Complete Criminal Organization In Human History

Paul Craig Roberts

Unique among the countries on earth, the US government insists that its laws and dictates take precedence over the sovereignty of nations. Washington asserts the power of US courts over foreign nationals and claims extra-territorial jurisdiction of US courts over foreign activities of which Washington or American interest groups disapprove. Perhaps the worst results of Washington’s disregard for the sovereignty of countries is the power Washington has exercised over foreign nationals solely on the basis of terrorism charges devoid of any evidence.

Consider a few examples. Washington first forced the Swiss government to violate its own banking laws. Then Washington forced Switzerland to repeal its bank secrecy laws. Allegedly, Switzerland is a democracy, but the country’s laws are determined in Washington by people not elected by the Swiss to represent them.

Consider the “soccer scandal” that Washington concocted, apparently for the purpose of embarrassing Russia. The soccer organization’s home is Switzerland, but this did not stop Washington from sending FBI agents into Switzerland to arrest Swiss citizens. Try to imagine Switzerland sending Swiss federal agents into the US to arrest Americans.

Consider the $9 billion fine that Washington imposed on a French bank for failure to fully comply with Washington’s sanctions against Iran. This assertion of Washington’s control over a foreign financial institution is even more audaciously illegal in view of the fact that the sanctions Washington imposed on Iran and requires other sovereign countries to obey are themselves strictly illegal. Indeed, in this case we have a case of triple illegality as the sanctions were imposed on the basis of concocted and fabricated charges that were lies.

Or consider that Washington asserted its authority over the contract between a French shipbuilder and the Russian government and forced the French company to violate a contract at the expense of billions of dollars to the French company and a large number of jobs to the French economy. This was a part of Washington teaching the Russians a lesson for not following Washington’s orders in Crimea.

Try to imagine a world in which every country asserted the extra-territoriality of its law. The planet would be in permanent chaos with world GDP expended in legal and military battles.

Neoconned Washington claims that as History chose America to exercise its hegemony over the world, no other law is relevant. Only Washington’s will counts. Law itself is not even needed as Washington often substitutes orders for laws as when Richard Armitage, Deputy Secretary of State (an unelected position) told the President of Pakistan to do as he is told or “we will bomb you into the stone age.” http://news.bbc.co.uk/2/hi/south_asia/5369198.stm 
 
Try to imagine the Presidents of Russia or China giving such an order to a sovereign nation.

In fact, Washington did bomb large areas of Pakistan, murdering thousands of women, children, and village elders. Washington’s justification was the assertion of the extra-territoriality of US military actions in other countries with which Washington is not at war.

As horrendous as all of this is, the worst of Washington’s crimes against other peoples is when Washington kidnaps citizens of other countries and renditions them to Guantanamo in Cuba or to secret dungeons in criminal states such as Egypt and Poland to be held and tortured in violation both of US law and international law. These egregious crimes prove beyond any doubt that the US government is the worst criminal enterprise that has ever existed on Earth.

When the criminal neoconservative George W. Bush regime launched its illegal invasion of Afghanistan, the criminal regime in Washington desperately needed “terrorists” in order to provide a justification for an illegal invasion that constitutes a war crime under international law. However, there were not any terrorists. So Washington dropped leaflets over warlord territories offering thousands in dollars in bounty money for “terrorists.” The warlords responded to the opportunity and captured every unprotected person and sold them to the Americans for the bounty.

The only evidence that the “terrorists” were terrorists is that the innocent people were sold to the Americans by warlords as “terrorists.”

Yesterday Fayez Mohammed Ahmed Al-Kandari was released after 14 years of torture by “freedom and democracy America.” The United States military officer, Col. Barry Wingard, who represented Al-Kandari said that “there simply is no evidence other than he is a Muslim in Afghanistan at the wrong time, other than double and triple hearsay statements, something I have never seen as justification for incarceration.” Much less, said Col. Wingard, was there cause for a litany of multi-year torture in an effort to force a confession to the alleged offenses.

Do not expect the Western prostitute media to report these facts to you. To find out, you must go to RT https://www.rt.com/usa/328329-kuwaiti-detainee-guantanamo-transfer/ or to Stephen Lendman http://sjlendman.blogspot.com or here to this site.

The presstitute Western media are part of Washington’s criminal operation.


Friday, January 01, 2016

All Americans who have completed grades one-through-12 believe that they know American history. However, vertually no one truely understands the American history of the 21st Century. You think not? Well test your knowledge against what you will learn by watching this comprehensive intrview with Paul Craig Roberts. Nuclear war is on the horizon, and the first step to stave it off is for Americans to understand today's history. In addition, PCR the superb (and honest) economist points out that US employment is being faked by the government. Those who have given up finding a job have been written off as nonexistant. If the Labor Force Participation Rate had been considered unemployment would be 23%. In fact the middle class has be rapidly shrinking. For example 50% of age-25 Americans are now forced to live with their parents. PCR also explains the senselessness of the recent up-tic in the Fed's interest rates. Educate yourselves folks, before it's too late!



US Stupid Enough to Cause Nuclear War-Paul Craig Roberts

By Greg Hunter On December 27, 2015

By Greg Hunter’s USAWatchdog.com  (Early Sunday Release)

Former Assistant Treasury Secretary Dr. Paul Craig Roberts has a dim view of the so-called “economic recovery.” Dr. Roberts contends, “There has been no recovery whatsoever. . . . If you look at the economy realistically, and that means you don’t use their phony numbers, there has been no recovery whatsoever and, in fact, it continues to worsen. We see that the “Labor Force Participation Rate” continues to sink. . . . When you consider the full measure of unemployment . . . we still have an unemployment rate of 23% after 7 years of an alleged recovery? I think this is the first so-called recovery where the labor force fell. Normally, when you have a recovery, people re-enter the labor force and the participation rate rises. . . . How do you have 5% unemployment when half of all 25 year old people have to live at home with their parents? What kind of a “recovery” is that? They say there is no inflation, but everyone that goes shopping knows that is a lie. . . . It’s all just a package of smoke, mirrors and lies.”

Don’t expect this to turn around anytime soon. Dr. Roberts says, “There is no opportunity for the middle-class. It must be shrinking. I would say the U.S. economy is in long-term decline. 
Rigging the way you measure inflation, rigging the way you measure unemployment, that may fool ordinary people, but that does not fool those of us who look at the numbers.”

On war, Dr. Roberts’ view is dire and goes on to explain, “Everything that previous presidents have done to try to defuse the kind of tensions between nuclear powers that could lead to war, all this has been thrown away by Clinton, George W. Bush and the current White House fool. It’s all due to the Neoconservatives. So, yes, we are in a more dangerous situation than in the worst part of the cold war. Thanks to the Neoconservatives and thanks to the American ‘presstitute’ media with people who lie for a living, we are in more danger than we have ever been. A war could result, and if it doesn’t, then it’s just because Putin has got too much sense. I don’t think Putin is going to absorb these provocations forever, and I don’t think he’s going to put up with any more nonsense in Ukraine. That was a part of Russia longer than the United States has existed. . . .Can you imagine anything more insane and reckless than you go into a part of Russia, that has only been independent for a few years, and overthrow a democratically elected government that is getting along with Russia and stick in an American puppet with all these crazed right-wing Nazi people and cause all this trouble with Russia and tell endless lies about it? What is more reckless and irresponsible? That is the way the United States government is behaving. If you can do things that stupid, you can cause a nuclear war.”
 
Join Greg Hunter as he goes One-on-One with Dr. Paul Craig Roberts.
 
(There is much more in this in-depth interview.)

https://youtu.be/gZx7JWSOqK0

After the Interview:
There are free articles and information on PaulCraigRoberts.org. If you want to support Dr. Roberts, you can do so by clicking here.

Saturday, August 08, 2015

Paul Craig Roberts: "The bullion banks’ attack on gold is being augmented with a spate of stories in the financial media denying any usefulness of gold. On July 17 the Wall Street Journal declared that honesty about gold requires recognition that gold is nothing but a pet rock. Other commentators declare gold to be in a bear market despite the strong demand for physical metal and supply constraints, and some influential party is determined that gold not be regarded as money. Why a sudden spate of claims that gold is not money?" "The only possible explanation is manipulation." Blogger: Find out how they do it by reading this excellent article.



Supply and Demand in the Gold and Silver Futures Markets – Paul Craig Roberts and Dave Kranzler

July 27, 2015 | Original Here                                            Go here to sign up to receive email notice of this news letter

This article establishes that the price of gold and silver in the futures markets in which cash is the predominant means of settlement is inconsistent with the conditions of supply and demand in the actual physical or current market where physical bullion is bought and sold as opposed to transactions in uncovered paper claims to bullion in the futures markets. The supply of bullion in the futures markets is increased by printing uncovered contracts representing claims to gold. This artificial, indeed fraudulent, increase in the supply of paper bullion contracts drives down the price in the futures market despite high demand for bullion in the physical market and constrained supply. We will demonstrate with economic analysis and empirical evidence that the bear market in bullion is an artificial creation.

The law of supply and demand is the basis of economics. Yet the price of gold and silver in the Comex futures market, where paper contracts representing 100 troy ounces of gold or 5,000 ounces of silver are traded, is inconsistent with the actual supply and demand conditions in the physical market for bullion. For four years the price of bullion has been falling in the futures market despite rising demand for possession of the physical metal and supply constraints.

We begin with a review of basics. The vertical axis measures price. The horizontal axis measures quantity. Demand curves slope down to the right, the quantity demanded increasing as price falls. Supply curves slope upward to the right, the quantity supplied rising with price. The intersection of supply with demand determines price. (Graph 1)

A change in quantity demanded or in the quantity supplied refers to a movement along a given curve. A change in demand or a change in supply refers to a shift in the curves. For example, an increase in demand (a shift to the right of the demand curve) causes a movement along the supply curve (an increase in the quantity supplied).

Changes in income and changes in tastes or preferences toward an item can cause the demand curve to shift. For example, if people expect that their fiat currency is going to lose value, the demand for gold and silver would increase (a shift to the right).

Changes in technology and resources can cause the supply curve to shift. New gold discoveries and improvements in gold mining technology would cause the supply curve to shift to the right. Exhaustion of existing mines would cause a reduction in supply (a shift to the left).

What can cause the price of gold to fall? Two things: The demand for gold can fall, that is, the demand curve could shift to the left, intersecting the supply curve at a lower price. The fall in demand results in a reduction in the quantity supplied. A fall in demand means that people want less gold at every price. (Graph 2)

Alternatively, supply could increase, that is, the supply curve could shift to the right, intersecting the demand curve at a lower price. The increase in supply results in an increase in the quantity demanded. An increase in supply means that more gold is available at every price. (Graph 3)


To summarize: a decline in the price of gold can be caused by a decline in the demand for gold or by an increase in the supply of gold.

A decline in demand or an increase in supply is not what we are observing in the gold and silver physical markets. The price of bullion in the futures market has been falling as demand for physical bullion increases and supply experiences constraints. What we are seeing in the physical market indicates a rising price. Yet in the futures market in which almost all contracts are settled in cash and not with bullion deliveries, the price is falling.

For example, on July 7, 2015, the U.S. Mint said that due to a “significant” increase in demand, it had sold out of Silver Eagles (one ounce silver coin) and was suspending sales until some time in August. The premiums on the coins (the price of the coin above the price of the silver) rose, but the spot price of silver fell 7 percent to its lowest level of the year (as of July 7).

This is the second time in 9 months that the U.S. Mint could not keep up with market demand and had to suspend sales. During the first 5 months of 2015, the U.S. Mint had to ration sales of Silver Eagles. According to Reuters, since 2013 the U.S. Mint has had to ration silver coin sales for 18 months. In 2013 the Royal Canadian Mint announced the rationing of its Silver Maple Leaf coins: “We are carefully managing supply in the face of very high demand. . . . Coming off strong sales volumes in December 2012, demand to date remains very strong for our Silver Maple Leaf and Gold Maple Leaf bullion coins.” During this entire period when mints could not keep up with demand for coins, the price of silver consistently fell on the Comex futures market. On July 24, 2015 the price of gold in the futures market fell to its lowest level in 5 years despite an increase in the demand for gold in the physical market. On that day U.S. Mint sales of Gold Eagles (one ounce gold coin) were the highest in more than two years, yet the price of gold fell in the futures market.

How can this be explained? The financial press says that the drop in precious metals prices unleashed a surge in global demand for coins. This explanation is nonsensical to an economist. Price is not a determinant of demand but of quantity demanded. A lower price does not shift the demand curve. Moreover, if demand increases, price goes up, not down.

Perhaps what the financial press means is that the lower price resulted in an increase in the quantity demanded. If so, what caused the lower price? In economic analysis, the answer would have to be an increase in supply, either new supplies from new discoveries and new mines or mining technology advances that lower the cost of producing bullion.

There are no reports of any such supply increasing developments. To the contrary, the lower prices of bullion have been causing reductions in mining output as falling prices make existing operations unprofitable.

There are abundant other signs of high demand for bullion, yet the prices continue their four-year decline on the Comex. Even as massive uncovered shorts (sales of gold contracts that are not covered by physical bullion) on the bullion futures market are driving down price, strong demand for physical bullion has been depleting the holdings of GLD, the largest exchange traded gold fund. Since February 27, 2015, the authorized bullion banks (principally JPMorganChase, HSBC, and Scotia) have removed 10 percent of GLD’s gold holdings. Similarly, strong demand in China and India has resulted in a 19% increase of purchases from the Shanghai Gold Exchange, a physical bullion market, during the first quarter of 2015. Through the week ending July 10, 2015, purchases from the Shanghai Gold Exchange alone are occurring at an annualized rate approximately equal to the annual supply of global mining output.

India’s silver imports for the first four months of 2015 are 30% higher than 2014. In the first quarter of 2015 Canadian Silver Maple Leaf sales increased 8.5% compared to sales for the same period of 2014. Sales of Gold Eagles in June, 2015, were more than triple the sales for May. During the first 10 days of July, Gold Eagles sales were 2.5 times greater than during the first 10 days of June.

Clearly the demand for physical metal is very high, and the ability to meet this demand is constrained. Yet, the prices of bullion in the futures market have consistently fallen during this entire period. The only possible explanation is manipulation.

Precious metal prices are determined in the futures market, where paper contracts representing bullion are settled in cash, not in markets where the actual metals are bought and sold. As the Comex is predominantly a cash settlement market, there is little risk in uncovered contracts (an uncovered contract is a promise to deliver gold that the seller of the contract does not possess). This means that it is easy to increase the supply of gold in the futures market where price is established simply by printing uncovered (naked) contracts. Selling naked shorts is a way to artificially increase the supply of bullion in the futures market where price is determined. The supply of paper contracts representing gold increases, but not the supply of physical bullion.

As we have documented on a number of occasions (see, for example, http://www.paulcraigroberts.org/2014/12/22/lawless-manipulation-bullion-markets-public-authorities-paul-craig-roberts-dave-kranzler/ ), the prices of bullion are being systematically driven down by the sudden appearance and sale during thinly traded times of day and night of uncovered future contracts representing massive amounts of bullion. In the space of a few minutes or less massive amounts of gold and silver shorts are dumped into the Comex market, dramatically increasing the supply of paper claims to bullion. If purchasers of these shorts stood for delivery, the Comex would fail. Comex bullion futures are used for speculation and by hedge funds to manage the risk/return characteristics of metrics like the Sharpe Ratio. The hedge funds are concerned with indexing the price of gold and silver and not with the rate of return performance of their bullion contracts.

A rational speculator faced with strong demand for bullion and constrained supply would not short the market. Moreover, no rational actor who wished to unwind a large gold position would dump the entirety of his position on the market all at once. What then explains the massive naked shorts that are hurled into the market during thinly traded times?

The bullion banks are the primary market-makers in bullion futures. They are also clearing members of the Comex, which gives them access to data such as the positions of the hedge funds and the prices at which stop-loss orders are triggered. They time their sales of uncovered shorts to trigger stop-loss sales and then cover their short sales by purchasing contracts at the price that they have forced down, pocketing the profits from the manipulation

The manipulation is obvious. The question is why do the authorities tolerate it?

Perhaps the answer is that a free gold market serves both to protect against the loss of a fiat currency’s purchasing power from exchange rate decline and inflation and as a warning that destabilizing systemic events are on the horizon. The current round of on-going massive short sales compressed into a few minutes during thinly traded periods began after gold hit $1,900 per ounce in response to the build-up of troubled debt and the Federal Reserve’s policy of Quantitative Easing. Washington’s power is heavily dependent on the role of the dollar as world reserve currency. The rising dollar price of gold indicated rising discomfort with the dollar. Whereas the dollar’s exchange value is carefully managed with help from the Japanese and European central banks, the supply of such help is not unlimited. If gold kept moving up, exchange rate weakness was likely to show up in the dollar, thus forcing the Fed off its policy of using QE to rescue the “banks too big to fail.”

The bullion banks’ attack on gold is being augmented with a spate of stories in the financial media denying any usefulness of gold. On July 17 the Wall Street Journal declared that honesty about gold requires recognition that gold is nothing but a pet rock. Other commentators declare gold to be in a bear market despite the strong demand for physical metal and supply constraints, and some influential party is determined that gold not be regarded as money.

Why a sudden spate of claims that gold is not money? Gold is considered a part of the United States’ official monetary reserves, which is also the case for central banks and the IMF. The IMF accepts gold as repayment for credit extended. The US Treasury’s Office of the Comptroller of the Currency classifies gold as a currency, as can be seen in the OCC’s latest quarterly report on bank derivatives activities in which the OCC places gold futures in the foreign exchange derivatives classification.

The manipulation of the gold price by injecting large quantities of freshly printed uncovered contracts into the Comex market is an empirical fact. The sudden debunking of gold in the financial press is circumstantial evidence that a full-scale attack on gold’s function as a systemic warning signal is underway.

It is unlikely that regulatory authorities are unaware of the fraudulent manipulation of bullion prices. The fact that nothing is done about it is an indication of the lawlessness that prevails in US financial markets.

Paul Craig Roberts, Ph.D., is a former Assistant Secretary of the U.S. Treasury.

Dave Kranzler is a University of Chicago MBA and is an active participant in financial markets.