Tuesday, December 31, 2013

THIS is what "leading from behind" has wrought. THIS is Obama's foreign policy -- no foreign policy

Step back.  Take a look at the world today.  It’s an unmitigated MESS!
China and Japan, Russia and Syria, Russia and the Ukraine, Iran, Afghanistan, Iraq, Egypt, Israel and the so-called Palestinians,  South Sudan, the Central African Republic, Mali, and the Pacific Rim countries,  North Korea, the Philippines, and sundry other places that escape my memory at the moment.
THIS is what “leading from behind” has wrought.  THIS is Obama’s foreign policy—no foreign policy. 
Oh, there’s more to come.  As soon as US troops leave Afghanistan, the Taliban will move right back in with great shedding of blood.  Iran will soon have a nuclear bomb, (unless Israel intervenes) as will several other Middle Eastern countries.
South of us, well, South America is keeping a low profile—and that worries me.  Look for Argentina to take another shot at snatching the Falkland Islands from Great Britain—again.
Brazil is on its best behavior these days getting all gussied-up up for the Football World Cup coming up in June.  Venezuela has its own internal problems (so far) trying to imitate Cuba or the old Soviet Union and managing to provide the hemisphere with some tragic humor.
There’s not much coming out of our neighbors to the south these days mainly because the Obama administration seems to have simply written them off, which means the Mainstream Media in the US has no interest in anything happening below Brownsville, Texas, or Key West, Florida.
Oh.  About Obama’s “pivot” to the Pacific Rim? Well, it now appears he has abandoned it. Could it be that has emboldened China to stretch out across the South China Sea and confront Japan over the Senkaku Islands? I hope SOMEONE has made our President aware that we have a binding treaty with Japan to protect them should they be attacked.  No ifs, ands, or buts about it. 
According to the “Treaty of Mutual Cooperation and Security” between the United States and Japan, the US is committed to protecting Japan against an enemy’s attack.  Judging from the Japanese government’s recent consideration toward reevaluating their “no nukes” stance, something tells me the Japanese are worried about Obama’s steadfastness in so far as his standing by America’s treaty obligations with them.   
I’ve been around since the tail end of the Great Depression and, frankly, I don’t remember the US being this disengaged globally, well, EVER!
One of the consequences of voluntary isolation for a country is that that country loses any influence it might have on world events. 
Nature abhors a vacuum.  Something will fill it.  Russia and China have stepped up and are aggressively filling the void left when Obama took the US into full retreat from the world.  The US has less and less influence around the globe as each day passes.  We are seeing the results of that lack of influence all over the world today.  It is likely to get much worse.
Our President is a joke to foreign governments.  Obama is not what the remainder of the world considers “reliable.”  See, they’re ahead of America’s own citizens in arriving at that precisely correct conclusion.
Consider this from Max Boot at commentarymagazine.com: “Moreover, Americans aren’t happy with Obama’s foreign policy in general: “Forty-nine percent disapproved of Mr. Obama’s foreign policy efforts, up 10 points since early June, and 40 percent approved. The president’s negative rating on foreign policy has grown among Americans of all political stripes, with disapproval up 8 points among Democrats, 10 points among Republicans and 13 points among independents.” 
Mr. Boot goes on to say:  “What the public perceives–the same thing that much of the world perceives–is that Obama is weak and vacillating, deliberative but indecisive.”
Consider this from the May/June 2012 issue of Foreign Affairs:  “When Obama was sworn into office in January 2009, he had already developed an activist vision of his foreign policy destiny. He would refurbish the United States’ image abroad, especially in the Muslim world; end the wars in Iraq and Afghanistan; offer an outstretched hand to Iran; “reset” relations with Russia as a step toward ridding the world of nuclear weapons; elicit Chinese cooperation on regional and global issues; and make peace in the Middle East. By his own account, Obama sought nothing less than to bend history’s arc in the direction of justice and a more peaceful, stable world.”
Those of us who live in the real world had serious misgivings about his grasp of real world politics as soon as we learned of his pie-in-the-sky attitude toward the world situation.  In fact, it frightened old hands at foreign affairs and shocked even more.  It seemed his naivete knew no bounds.  It has turned out that that assessment was nearer to the mark than even we knew at the time.
The recent Obama imbroglio in Syria leads many, yours truly included, into believing Obama has no definitive foreign policy.  He just makes it up as he goes! 
One has to wonder how our traditional allies feel about this seeming lackadaisical attitude toward American leadership in the world.  One such ally, Israel, now knows, with a high degree of certainty, they cannot depend upon America as long as Obama is in the Oval Office.  How must Great Britain, France, Germany, Australia, Canada, et al, feel about any dependence upon America these days?
All one is required to do to see the justification in our query is simply observe the mess the world is in today.
Those of us who have been around the block a few times understand the importance and the necessity of remaining involved, of having some skin in the game.  It wasn’t nice. It wasn’t comfortable,  and often it has cost us in blood, sweat, tears and treasure—but it was—and remains—tactically and strategically a necessity even if Obama can’t (or won’t) see it.
As the title to this piece says:  “When the cat’s away, the mice will play.”  Silly me!  I just assumed everyone would understand that the RATS would also slink from the shadows and contribute to the madness and mayhem, as well. 
It’s past time for the big cat to come home!

A Drone Operator Speaks: "This Is What You Are Not Told"


A Drone Operator Speaks: "This Is What You Are Not Told"
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Submitted by Mike Krieger of Liberty Blitzkrieg blog,
Over the weekend, Heather Linebaugh wrote a powerful Op-ed in The Guardian newspaper lamenting the lack of public understanding regarding the American drone program. Heather should know what she’s talking about, she served in the United Stated Air Force from 2009 until March 2012. She worked in intelligence as an imagery and geo-spatial analyst for the drone program during the occupations of Iraq and Afghanistan.
Here are some key excerpts from her article:
Whenever I read comments by politicians defending the Unmanned Aerial Vehicle Predator and Reaper program – aka drones – I wish I could ask them a few questions. I’d start with: “How many women and children have you seen incinerated by a Hellfire missile?” And: “How many men have you seen crawl across a field, trying to make it to the nearest compound for help while bleeding out from severed legs?” Or even more pointedly: “How many soldiers have you seen die on the side of a road in Afghanistan because our ever-so-accurate UAVs [unmanned aerial vehicles] were unable to detect an IED [improvised explosive device] that awaited their convoy?”

Few of these politicians who so brazenly proclaim the benefits of drones have a real clue of what actually goes on. I, on the other hand, have seen these awful sights first hand.

I knew the names of some of the young soldiers I saw bleed to death on the side of a road. I watched dozens of military-aged males die in Afghanistan, in empty fields, along riversides, and some right outside the compound where their family was waiting for them to return home from the mosque.
What the public needs to understand is that the video provided by a drone is not usually clear enough to detect someone carrying a weapon, even on a crystal-clear day with limited cloud and perfect light. This makes it incredibly difficult for the best analysts to identify if someone has weapons for sure. One example comes to mind: “The feed is so pixelated, what if it’s a shovel, and not a weapon?” I felt this confusion constantly, as did my fellow UAV analysts. We always wonder if we killed the right people, if we endangered the wrong people, if we destroyed an innocent civilian’s life all because of a bad image or angle.
Moreover, the many civilians being incinerated without a trial are not the only victims here. So are the actual drone operators themselves, many of whom end up committing suicide. Recall my article from December 2012: Meet Brandon Bryant: The Drone Operator Who Quit After Killing a Child. Of course, our so-called political “leaders” never get their hands dirty, other than to take a lobbyist bribe that is. Now more from Heather:
Recently, the Guardian ran a commentary by Britain’s secretary of state for defence, Philip Hammond. I wish I could talk to him about the two friends and colleagues I lost, within a year of leaving the military, to suicide. I am sure he has not been notified of that little bit of the secret UAV program, or he would surely take a closer look at the full scope of the program before defending it again.
Full article

Sunday, December 29, 2013

Jobless Claims - The Economic Miracle That Wasn't

The noise in the jobless claims data over the past few months has been unprecedentedand yet the impressive jump lower in recent weeks has been trumpeted as the all-clear for Tapering and as a signal that the recovery is 'real' this time. Except, thanks to a huge 'glitch' in Florida's new CONNECT unemployment claims website, the data is completely FUBAR...

The story so far...
Florida’s ongoing claims for unemployment benefits plummeted to the lowest level in six years from mid-October to early December. The average of 20,000 fewer weekly claims from the prior nine weeks represents a plunge of 18 percent, the sharpest decline in 15 years.

Yet rather than herald an improving job market, chalk up Florida’s shrinking claims numbers instead to the troubled debut of the state’s unemployment claims website, CONNECT.
And echoing Obamacare's SNAFU...
Since its October launch, the $63 million website has been plagued by glitches, sowing confusion and despair among many of the 235,000 claimants who file every other week to help pay for essentials like food and rent.

Difficulties in logging on or navigating CONNECT have precluded thousands from collecting.
With significant implications...
I’m about to be thrown out on the street,” said Allen Schwalb of Seminole, who was laid off from a warehouse job in October but as of this week had yet to receive any benefits despite many attempts to file. “The state now owes me $1,400 for eight weeks of unemployment. I don’t know what I will do if I don’t receive it soon.”

...

Upon going live Oct. 15, the CONNECT site struggled anyway.

Unemployment offices were packed with those who said they couldn’t log on. Phone lines were jammed. Calls were dropped. Frustration grew.
To which the government first denied...
Some of the press stories about CONNECT have been incomplete and focused on a narrative that is more likely to grab readers than to accurately report facts,” Panuccio told the Senate’s Commerce and Tourism Committee on Nov. 4.
Then admitted...
By December, however, Panuccio conceded all was not going well. The project was no longer meeting expectations. He posted messages on the DEO’s website acknowledging difficulties.
Which means, simply, the data is useless and the people who need it the most are not getting it...
The drop in claims is so dramatic and so precisely coincides with the launching of CONNECT that there can be no other explanation,” Greenfield said. “This is having an effect on a huge group of people. We’re very disappointed in the length of time it’s taken to get these people their benefits.”

...

Florida is notoriously tight-fisted when it comes to unemployment benefits, which makes CONNECT’s failings even more glaring.

“Florida in the last few years has made it virtually impossible to access benefits,” said Maurice Emsellem, a staff director with the National Employment Law Project. “The digital divide is a reality, so why on earth would you require to register online? It’s not fair access.”
But it's going to get worse...
Florida is one of six states that provides job-seekers fewer than 26 weeks of coverage. Now offering 19 weeks, Florida will drop to 16 weeks starting in January. Under Florida law, the lower the unemployment rate (which has fallen to 6.4 percent), the fewer weeks of compensation an unemployed person receives.

Once federal unemployment compensations expire, coverage for Ewing and 73,000 other Floridians is immediately eliminated.
It's a narrative we hear all too often - failure of big government, deny, deny, deny, small admission... but any good headline is clung to and any naysayer shrugged off as meaningless, racist, or a doomsayer...

Keynes & Copernicus: Debasement Of Money Overthrows The Social Order And Governments

Submitted by Ralph Benko via The Cobden Centre blog,
The United States Senate moves toward the confirmation of Janet Yellen, now posited for next January 6th, as chair of the Federal Reserve System. Let us in this moment of recessreflect on eerily similar observations by two of history’s most transformational figures:  John Maynard Keynes and Nicolas Copernicus.
One of Keynes’s most often-cited observations, from his 1919 The Economic Consequences of the Peace, chapter VI, contains an indictment of policies very like those which the Federal Reserve System has been implementing for the past dozen, and more, years.  These policies in slow motion are, in the opinion of this columnist, at the root of  the very political, social, and cultural dysphoria — uneasiness or generalized dissatisfaction — predicted by Keynes:
Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become ‘profiteers,’ who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.

Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.
An almost identical point was made almost four centuries before Keynes by iconic savant and polymath Nicolas Copernicus.
Copernicus commenced a study composed for the Prussian and Polish governments around 1525, On the Minting of Money, with these words:
ALTHOUGH THERE ARE COUNTLESS MALADIES that are forever causing the decline of kingdoms, princedoms, and republics, the following four (in my judgment) are the most serious: civil discord, a high death rate, sterility of the soil, and the debasement of coinage.

The first three are so obvious that everybody recognizes the damage they cause; but the fourth one, which has to do with money, is noticed by only a few very thoughtful people, since it does not operate all at once and at a single blow, but gradually overthrows governments, and in a hidden, insidious way.
This does not imply plagiarism by Keynes.  The coincidence between Keynes’s “[To debauch the currency] engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose” and Copernicus’s “[The debasement of coinage] … is noticed by only a few very thoughtful people, since it does not operate all at once and at a single blow, but gradually overthrows governments, and in a hidden, insidious way” is, however, striking.
Keynes, like Copernicus a paradigm-shifter, was himself extraordinarily erudite.  It is not impossible the young Keynes came across Copernicus’s work (which reportedly was first actually published in 1826).   The question as to whether Copernicus’s Essay may have inspired Keynes’s observation must be left to authentic scholars such as Lord Skidelsky.
The similarity may be merely that of “great minds working alike.”  This columnist has found but one direct reference by Keynes to Copernicus.
Keynes (whose thinking was mostly, although not exclusively, opposed to the gold standard) was fascinated by one of Copernicus’s most accomplished scientific successors, Sir Isaac Newton.  Newton, also, achieved iconic status, both for his contributions to physics and, as Master of the Mint of Great Britain, as the architect of the modern classical gold standard. Newton’s gold standard was designed along Copernican principles of close correlation toward nominal and intrinsic value.  It served the world very well for almost 200 years.
Keynes was to have addressed the Royal Society of London’s gathering to celebrate the tercentenary of Newton’s birth, an event delayed by the war.  Keynes died a few months before he could present his remarks.  Maynard’s remarks, Newton, the Man, were presented by his brother Geoffrey (and thus might even be characterized as Keynes’s last words).  A brief excerpt:
Why do I call [Newton] a magician? Because he looked on the whole universe and all that is in it as a riddle, as a secret which could be read by applying pure thought to certain evidence, certain mystic clues which God had laid about the world to allow a sort of philosopher’s treasure hunt to the esoteric brotherhood.



[H]e became one of the greatest and most efficient of our civil servants. He was a very successful investor of funds, surmounting the crisis of the South Sea Bubble, and died a rich man. He possessed in exceptional degree almost every kind of intellectual aptitude – lawyer, historian, theologian, not less than mathematician, physicist, astronomer.



As one broods over these queer collections [of Newton's alchemical writings, which Keynes collected], it seems easier to understand – with an understanding which is not, I hope, distorted in the other direction – this strange spirit, who was tempted by the Devil to believe at the time when within these walls he was solving so much, that he could reach all the secrets of God and Nature by the pure power of mind Copernicus and Faustus in one.
As for Copernicus, On the Minting of Money has been translated into English several times yet those translations remained difficult to obtain for students of the monetary arts and sciences.  It has remained mostly the property of elite historians.  Scant and intriguing references were limited to all-too-brief articles such as “Treatise On the Minting of Coinand Copernicus views on economics” by Leszek Zygner of  Nicolaus Copernicus University.
The full text of Copernicus’s fascinating and invaluable essay remained elusive, that is, until last month.
Laissez Faire Books published a meticulous and fresh English translation from the Latin, with prefatory remarks, bibliography, and invaluable critical apparatus by classicist Prof. Gerald Malsbary. (The volume was co-edited by this columnist and by his  fellowForbes.com columnist Charles Kadlec, with a foreword by Reagan Gold Commissioner Lewis E. Lehrman, whose eponymous Institute this columnist professionally serves).
From Prof. Malsbary’s Prefatory Remarks to Copernicus’s Essay on Money:
NICOLAS COPERNICUS the astronomer embodies the modern scientific ideal: the revolutionary revealer of a new, verifiable scientific theory that shocks our conventional perceptions. However, it is not very widely known, outside of Eastern Europe at least, that Copernicus also spent about twenty years working on economic theory. His treatise On the Minting of Money (Monetae Cudendae Ratio), was first printed in 1826, three hundred years after its composition in 1525–1526. At the time, the semi-autonomous ecclesiastical region between Poland and Prussia where he lived (Varmia) was undergoing a political and economic metamorphosis, and his judgment and expertise (a fruit of the best late Scholastic and Humanist learning) was summoned by the Prussian and Polish governments to help stabilize an inflated currency. Was his insight into monetary matters as revolutionary as his astronomy?
Keynes: “The process [of debauching the currency] engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”  Copernicus: “[The debasement of coinage] … is noticed by only a few very thoughtful people, since it does not operate all at once and at a single blow, but gradually overthrows governments, and in a hidden, insidious way.”
Malsbary: “Was [Copernicus's] insight into monetary matters as revolutionary as his astronomy?” In a word, yes.
Madame Yellen?  Whether one follows Keynes or Copernicus … it is time to return to the principle of meticulous monetary integrity — as exemplified by the classical gold standard — to restore legitimacy both to to the social order and to government.

The New New Great Game: Geography, Energy, The Dollar And Gold


The New New Great Game: Geography, Energy, The Dollar and Gold (pdf link)
Sir Halford Mackinder’s 1904 speach in which he outlined his “Heartland Theory” was a founding moment for geo-politics. He argued that control of the Eurasian landmass (Europe, Asia and the Middle East), which contained the bulk of the world’s population and natural resources, was the major geo-political prize.
As time passed, energy (first crude oil then natural gas), became increasingly integral to this concept and its strategic significance cannot be overstated.
Remarkably, Mackinder’s theory has remained equally valid, if not more so, in the modern era - although key “pivot areas” for exercising control have evolved. In addition to Central Asia and Trans-Caucasus in Mackinder’s day, the oil producing nations of the Middle East took on increasing importance in the “New Great Game”.
The geo-political confrontation between the US on one hand and China (in increasingly close cooperation with Russia) on the other, is evolving rapidly. We see a “New New Great Game” (NNGG) emerging and have “tweaked” the Heartland Theory to include.
An additional geographic “pivot”, the South and East China Seas, due to their importance in terms of world trade, oil and gas reserves and numerous territorial claims.
A monetary “pivot”, the dollar-based system of world trade and its reserve status. China is taking the lead role in pushing ahead with its strategy of dismantling the dollar’s supremacy.
Geo-political tension in each of the pivot areas is escalating. For example Central Asia and Trans-Caucasus (Ukraine), Middle East (Iran) and South and East China Seas (Senkaku Islands). The rising powers, China and Russia, are adopting more aggressive geo-political tactics towards US/EU/NATO/Japanese interests. The more “dovish” US policy towards Iran, following the recent nuclear deal, is threatening to destabilise the decades-long status quo in diplomatic relations with Israel and Saudi Arabia.
Just about every aspect of the escalating geo-political tension has an energy element, either directly or indirectly. Viewed from a “Mackinderian” perspective, the strategic value of the energy sector is immense. It begs the question whether, after five years of underperformance, the equity market is under-pricing energy assets, including those deeply out-of-favour integrated oil and gas stocks? Probably, in our view.
We believe that the significance of the monetary pivot in the NNGG is under-estimated as China accelerates preparations to undermine the dollar’s role in world trade. The other aspect of China’s strategy is its diversification into “hard assets” and, as far as we can tell, China is attempting to “corner” the market for physical gold. Its strategic significance is lost on most Western investors. We present some insights into today’s gold market which might shock Western investors - similarities with the run-up to the major lows in the gold price more than a decade ago - and China’s understanding of modern gold market mechanics.
The threats to the existing US-centric order are substantial and the geo-political sands are shifting. The US will respond and has the largest economy and military (with vast ocean-going naval advantage), most powerful investment banks and deepest financial markets and significant (albeit declining) political/diplomatic influence. In terms of boxing metaphors, we wonder whether the Ali versus Foreman fight in Kinshasa in 1974 (knockout in the eighth) or the Leonard versus Hagler fight at Caesar’s Palace in 1987 (points victory where the argument as to who actually won continues) will be the parallel.
* * *
From an anonymous source prior to the major lows in the gold price more than a decade ago.
“Someone once said, ‘no one wants gold, that’s why the US$ price keeps falling.’ Many thinking ones laugh at such foolish chatter. They know that the price of gold is dropping precisely because ‘too many people are buying it’! Think now, if you are a person of ‘great worth’ is it not better for you to acquire gold over years, at better prices? If you are one of ‘small worth’, can you not follow in the footsteps of giants? The real money is selling ALL FORMS of paper gold and buying physical! Why? Because any form of paper gold is losing value much, much faster than metal. Some paper will disappear all together in a fire of epic proportions! The massive trading continues at LBMA, but something is now missing...We have reached production costs...The great mistake by the BIS was in underestimating the Asians. Some big traders said they would buy it all below $365+/- and they did. That’s what forced LBMA to go on a spree of paper selling! Now, it’s a mess.”
Interesting?
The gold price is approaching production cost again.
We have the physical versus paper demarcation again (most commentators are clueless on this - the paper market is still determining the screen price, but it will probably die once and for all this time around – the question is at what level?).
The Asians are being underestimated again when the price is declining (although not by the BIS - China is buying physical gold in unprecedented volumes – at least 70-75% of world mining production this year).
But accelerating developments in the monetary sphere is only one element of...
The “New New Great Game”
Mackinder’s “Heartland Theory”
The traditional “Great Game” obviously dates back to the geo-political rivalry between Great Britain and Russia for supremacy in the central Asian region during the nineteenth and early part of the last century. In his famous speech, “The Geographical Pivot of History”, to the Royal Geographical Society in 1904, Sir Halford Mackinder outlined his “Heartland Theory. ” According to Wikipedia.
“This is often considered a, if not the, founding moment of geo-politics...”
Briefly, this posited that the major geo-political prize is Eurasia (the “World Island”), i.e. the European, Asian and Middle Eastern land mass, which contained the bulk of the world’s population and its natural resources. Mackinder argued that control of the “pivot area“ of central Asia was the key to controlling Eurasia.
This is taken from his paper published in the April 1904 edition of the “The Geographical Journal.”
He also emphasised the important difference between sea power and land power. From Zurich-based ISN’s 2009 “Geopolitics and US Middle Eastern Policy: Mackinder and Brzezinski.”
“Mackinder’s theory was a counter-argument to notions that maritime supremacy was sufficient for a power such as Great Britain to safeguard its hegemony. He claimed that, with the emergence of new transportation routes [e.g. Trans-Siberian railway] and technology, a power that could control the centre (and the abundant resources) of the Eurasian landmass...would ultimately be able to attack the colonies of a sea power everywhere on the continent. “
The Trans-Siberian Railway.
In the wake of World War One, Mackinder argued the case for preventing a convergence of interests between Russia and new “pivot” states of Eastern Europe (Austria, Hungary, Czechoslovakia and Poland). This led to his famous dictum.
“Who rules East Europe commands the Heartland;
Who rules the Heartland commands the World Island;
Who rules the World Island commands the World.”
It’s important to emphasise that the pivot area does evolve/fluctuate with changes in geo-political reality. Indeed, Mackinder included the Baltic states in one of his revisions.
As the world industrialised and became increasingly dependent on crude oil (and later, natural gas), energy resources became ever more integral to the Great Game. With such a large proportion of the world’s oil and gas reserves found on the Eurasian land mass, this was easily accommodated within Mackinder’s theory.
The period just before World War One, with the British Navy’s switch from coal to oil and the adoption of the automobile, set the stage for this. Indeed, in 1913, the British government acquired a 51% controlling interest in the Anglo-Persian Oil Company, the forerunner of BP.
Remarkably, the validity of Mackinder’s theory has stood the test of time, even though most people are unfamiliar with it. The following quote is from the Reagan Administration’s “National Security Strategy of the United States” published in January 1988.
“The first historical dimension of our strategy is relatively simple, clear-cut, and immensely sensible. It is the conviction that the United States’ most basic national security interests would be endangered if a hostile state or group of states were to dominate the Eurasian land mass – that area of the globe often referred to as the world’s heartland.”
Right now, it’s obvious that US national security interests are threatened by a combination of China and Russia.
This was the influential globalist (and former National Security Advisor), Zbigniew Brzezinski, writing in his famous 1997 book, “The Grand Chessboard.”
“Ever since the continents started interacting politically some 500 years ago, Eurasia has been the centre of world power… For America, the chief geopolitical prize is Eurasia – and America’s global primacy is directly dependent on how long and how effectively its preponderance on the Eurasian continent is sustained.”
In the “New Great Game”, (NGG) of the modern era, the major rivalry is between US/NATO on one side and China, Russia, other members of the Shanghai Cooperation Organisation and the likes of Iran, on the other.
The “pivot states” in the NGG are.
  • The key nations in Central Asia and the Trans-Caucasus: especially those with substantial energy resources and/or pipelines (e.g. Azerbaijan, Ukraine, Turkmenistan, Uzbekistan etc). Here is a chart showing the major gas pipelines
And the major oil pipelines:
  • The major OPEC nations of the Middle East: here we borrow part of US geo-strategist, Nicholas Spykman’s, “Rimland” theory. Spykman, the “godfather of containment” was both a disciple and critic of Mackinder. He believed that the “Rimland”, European coast, Arabian-Middle Eastern desert and Asiatic Monsoon region was more important for controlling the Heartland.
This was Brzezinksi on the Central Asian Republics, or “Eurasian Balkans” as he terms them in his book. This was in 1997, when China’s economic and military might was still a distant prospect.
“They are of importance from the standpoint of security and historical ambitions to at least three of their most important and more powerful neighbours, namely Russia, Turkey and Iran, with China also signalling an increasing political interest in the region. But the Eurasian Balkans are infinitely more important as a potential economic prize; an enormous concentration of natural gas and oil reserves is located in the region, in addition to important minerals including gold.”
It’s a reminder of the strategic importance of energy and gold and puts the US-supported “Color revolutions” into sharper focus - Ukraine (Orange, 2004), Georgia (Rose, 2003) and Kyrgyzstan (Tulip, 2005).
Tweaking the Heartland Theory
We agree with the modern interpretation of the NGG, but we see TWO additional elements which make the current situation a “New New Great G

DHS insider gives final warning

Under the cover and amid the distraction of the Christmas bustle, I had my last “official” contact with a source inside the Department of Homeland Security known as “Rosebud” in my writings. My source is leaving his position, retiring along with numerous others choosing to leave this bureaucratic monstrosity.
For this contact, my source took unprecedented measures to be certain that our contact was far off the radar of prying government eyes and ears. I was stunned at the lengths he employed, and even found myself somewhat annoyed by the inconvenience that his cloak-and-dagger approach caused. It was necessary, according to my source, because all department heads under FEMA and DHS are under orders to identify anyone disclosing any information for termination and potential criminal prosecution.
“DHS is like a prison environment, complete with prison snitches,” he said, referring to the search for leaks and leakers. And the warden is obsessed. Ask anyone in DHS. No one trusts anyone else and whatever sources might be left are shutting up. The threats that have been made far exceed anything I’ve ever seen. Good people are afraid for their lives and the lives of their families. We’ve all been threatened. They see the writing on the wall and are leaving. It’s not a joke and not hype.”
The following is a narrative from my source, prefaced with the instructions to “take it or leave it,” and “disregard it at your own peril.” He added that it’s now up to each American to act on the information themselves or suffer the consequences. “I’ve resigned myself to the fact that most [Americans] will never be convinced of the reality that is taking place right in front of them.”

The plan explained

“According to every internal document I’ve seen and read, and from the few people I’ve spoken with who understand what’s going on, preparations have been finalized to respond to a crisis of unprecedented magnitude within the United States. The response will include the use of lethal force against U.S. citizens under the instructions of Barack Obama.”  But why?
“‘It’s the economy, stupid,’” he began, paraphrasing a campaign slogan coined by James Carville for Bill Clinton’s 1992 campaign.  “Just as I disclosed in our first meeting, the crisis will be rooted in an economic collapse. I told you last year, at a time when gold and silver were setting record highs, one specific indicator that time is very short. It is the final ‘smack down’ of the metals, gold and silver, that will presage the orchestrated economic collapse that is being planned by the bankers of Wall Street. Everybody needs to understand that this is a deliberate collapse of the U.S. economy with the oversight of the White House and the full knowledge of the Justice Department.  Everyone seems to be waiting for some big, history making event that will signal the start of the collapse. The fact is that the collapse has already started. It’s incremental, like a snowball rolling down a hill. It gets bigger and rolls faster. Well, this snowball is well on its way down the hill.”
“I don’t mean to sound repetitive, but I can’t stress this enough. Contrary to what you hear, we’re already in an economic collapse, except that most people haven’t a clue. The ‘big bang’ comes at the end, when people wake up one morning and can’t log in to their bank accounts, can’t use their ATM cards, and find out that their private pension funds and other assets have been confiscated,” he stated.
“I’ve seen documentation of multiple scenarios created outside of DHS. Different plans and back-up plans. Also, please understand that I deliberately used the word ‘created,’ as this is a completely manufactured event.  In the end it won’t be presented that way, which is extremely important for everyone to understand. What is coming will be blamed on some unforeseen event out of everyone’s control, that few saw coming or thought would actually happen. Then, another event will take place concurrent with this event, or immediately after it, to confuse and compound an already explosive situation.” I asked for specifics.
“As I said, there are several scenarios and I don’t know them all. I know one calls for a cyber-attack by an external threat, which will then be compounded by something far removed from everyone’s own radar. But it’s all a ruse, or a pretext. The threat is from within,” he stated. “Before people can regain their footing, a second event will be triggered.” Again, I asked for specifics.
“I’ve seen one operational plan that refers to the federal government’s response to a significant terrorist attack on U.S. soil. Information at these levels is compartmentalized. I don’t have specifics, just plans for the response. The response will be controls and restrictions on travel, business, and every aspect of our lives, especially gun ownership and speech that incites people against the government. I guess some people would call it Martial Law, and they would not be incorrect. But understand that this will be a process deployed in stages. How quickly of a process remains to be seen.”

The mechanics explained

As I said, people continue to look for something big to happen first, followed by a militaristic response by the federal government against U.S. citizens. Based on what I’ve seen, I don’t believe it will happen this way, although there is one unthinkable exception. That exception would involve a ‘decapitation’ of our leadership, but I’ve seen nothing even remotely suggestive of that. But I’ve heard and even read articles where that is mentioned. Frankly, though, that’s always been a threat. I suppose that if the leadership is deemed useless, or becomes a liability to the larger agenda in some manner,  it could happen. The precedent exists. Let’s pray that it’s not the case now.”
“I don’t think anyone except the initiated few know the precise series of events or the exact timing, just a general overview and an equally general time period. I think we’re in that period now, as DHS has their planned responses finalized. Also, the metals are important because it’s real money, not Ponzi fiat currency. The U.S. has no inventory of gold, so the prices are manipulated down to cause a sell-off of the physical assets. China is on a buying spree of gold, and other countries want their inventory back. The very people causing the prices to drop are the ones who are also buying the metals at fire sale prices. They will emerge extremely wealthy when the prices rise after the U.S. currency becomes wallpaper. A little research will identify who these people and organizations are.”
“I’d like to add a bit of perspective that might help explain the events as I described. Do you remember former Defense Secretary Donald Rumsfeld announcing that the Pentagon was unable to account for $2.3 trillion in the defense budget? That was on September 10, 2001, the day before the attacks of 9/11. Some suggest that 9/11 was orchestrated, in part to cover up the missing money, which is ludicrous. The result, however, was that suddenly the accounting issue took a back seat because of the attacks. The result will be the same. That’s a perfect example of the mechanics of what we are about to experience. It’s going to take years to sort out, and when it’s finally sorted out, the damage will have long been done.”
“Please note a few final things. The relationship that exists between DHS today and the executive branch is well beyond alarming. DHS and other organizations have become the private army of the Oval Office. The NSA, and I’ve got contacts there, is taking orders from the Oval Office. The IRS is under the virtual control of the Oval Office in a manner that would make Nixon cower. Even though all roads appear to lead to the Oval Office, they lead through the Oval Office. It’s not just Obama, but the men behind him, the people who put him there. The people who put him there are the ones who created him.” I asked who created him.
“First, ask yourself why there was such an all out effort to marginalize anyone talking about Obama’s eligibility in 2008. Even so-called conservatives pundits fell for the lie that such questions were nothing more than a diversion. They were following a specific drumbeat. That should tell every rational adult that he is a creation of the globalists who have no allegiance to any political party. He is the product of decades of planning, made for this very time in our history. He was selected to oversee the events I just disclosed. Who has that ability? He’s a product of our own intelligence agencies working with the globalists. He should be exhibit ‘A’ to illustrate the need to enforce the Logan Act. Need I say more?”
As often said by another of my sources, the U.S. is a captured operation. The lie is bigger than most people realize or are willing to confront. That is, until there is no other option. By then, it might be too late.

Saturday, December 28, 2013