There are several moving parts in this story: the Syrian war, ISIS and the push to remove Assad from power, the expansion of a militarized police state throughout Europe, and of course the refugee crisis.

The Paris Attacks Are Just The Beginning

Storm Clouds Gathering
Dec. 9. 2015

It might be tempting to react to this event emotionally without looking beyond the official narrative, without examining the evidence, without questioning where this is headed. You wouldn't be alone, but blind indignation lends itself to easy answers, half truths and comforting lies.

On the evening of November 13th 2015, Paris was shaken by a series of coordinated attacks. 129 people were killed, hundreds more wounded. An ambience of fear gripped the country. Terrorists could strike anywhere at any time. Nothing was safe. Even the smallest venue could be targeted.

It might be tempting to react to this event emotionally without looking beyond the official narrative, without examining the evidence, without questioning where this is headed. You wouldn't be alone, but blind indignation lends itself to easy answers, half truths and comforting lies.

Any time a population is attacked (or believes that they have been attacked) by an outside force, the reaction is as predictable as it is dangerous. New wars, and totalitarian laws that would have been unthinkable days before are easily justified, voices of reason are drowned out, and entire nations can be driven towards a cliff. Given the nature of this particular cliff it would behoove you to look a little deeper this time.

There are several moving parts in this story: the Syrian war, ISIS and the push to remove Assad from power, the expansion of a militarized police state throughout Europe, and of course the refugee crisis. All of which has been conveniently tied together, by a passport, carried by a suicide bomber, a passport which miraculously survived the blast unscathed. (Never mind the fact that German Interior Minister Thomas de Maiziere came forward to say that he had reason to suspect that the passport had been planted.)

Let's deconstruct this one piece at a time.

Evidence of Foreknowledge

Without even looking beyond mainstream sources, we find evidence that the French government knew that the attacks were coming. They were warned by the Iraqi government, they were warned by the Turkish government twice, and according to this article from the Times of Israel (which as since been edited), security officials in Paris were specifically warned of an impending attack that very morning. (The same article goes on to mention that the Bataclan theater had financial ties to the Israeli Military.)

And of course the French government just happened to be running an exercise simulating a mass shooting in Paris just hours before the attacks began. Where have we seen that before?

Could someone please explain how Iraq, and the Turkey government (which are developing countries), were able to see this coming, while the NSA and French intelligence were caught completely off guard? Are we really to believe that this was just incompetence?

The Setup

Before the dust had even settled, the official narrative was clear. ISIS was responsible. This was war, and France was going to escalate that war, both at home and abroad. A state of emergency was declared, road blocks, border controls and a curfew were imposed, freedom of assembly was restricted, and the military was deployed on the streets. French President Francois Hollande soon announced that he intended to extend the state of emergency for three months (some are even saying it may be extended indefinitely), and to alter the French constitution.

The state of emergency gives the police the power to detain people without trial, search without warrants and to block any website they see fit.

France's parliament has already voted to extend the country's state of emergency following the Paris attacks for three months, giving the police powers to keep people in their homes without trial, search the homes of people without a warrant from a judge and block any website deemed a problem.

These powers are already being used! Activist have already been placed under house arrest, and not for crimes that they have been accused of actually committing, but preemptively!

The attacks are also being used as a pretext to justify the establishment of a new European Intelligence Agency modeled after the CIA. See also here.

Who Created ISIS?

And speaking of the CIA... let's not forget who actually created ISIS.

France didn't seem too concerned about the rise of Islamic extremism when they joined the U.S. in the 2011 regime change operation in Libya. If mainstream news outlets were publishing evidence of jihadists among the CIA backed rebels, (secondary confirmation from the BBC here) it would be utterly naive to think that French intelligence services didn't know.

France also didn't seem to mind the fact that Islamic extremists were receiving the lion's share of the weapons that were looted from Gaddafi's armories, and shipped through Turkey, and into Syria.

France didn't stand up or speak out for years as the U.S. government continued arming, funding and training these extremists.

There was no righteous indignation at the atrocities they were committing.

There were no calls for criminal proceedings after those same rebels got caught using sarin gas against thousands of civilians, and the French government has never so much as verbally condemned the numerous state actors which have been caught assisting ISIS and/or its allies logistically (Turkey, Jordan, Qatar and Saudi Arabia & Israel for example).

Why? Because ISIS serves a purpose. ISIS and its associates, Al-Nusra and the FSA are weakening the Syrian government, creating a pretext for military intervention, and providing the perfect excuse for a massive power grab on the home front.

"Whoah! That's not fair to equate the FSA with ISIS!"

Really? Then explain this away: ISIS and Al-Nusra have officially formed alliances, FSA commanders have gone on record to say that they cooperate with, and conduct joint operations with Al-Nusra, and it has been well established that the FSA command is dominated by Islamic extremists. Do The Math.

The Rise of Fascism in Europe

What's happening in France should not be viewed in isolation. Xenophobic sentiment has been on the rise throughout Europe, and is gaining ground politically. This trend has clearly been exacerbated by the ongoing migrant crisis (which is obviously tied to the regime change policies of the West) but one variable in this equation that no one is talking about is the fact that the way immigration has been handled in Europe is not merely a question of short sightedness, it is a reflection of policy.

In 2012 UN migration chief Peter Sutherland urged the EU to "do its best to undermine" the "homogeneity" of its member states. Such a proposition may sound absurd, unless you take into account that breaking down the national identity of a country makes it much easier to dissolve political boundaries and independence. And that's precisely what the technocrats in Brussels want.

Hollande has been one of the most outspoken voices in this push to hand over more power to a centralized European government, effectively stripping member states of any meaningful sovereignty. Give that European government a military, it's own surveillance apparatus and public which is struggling financially, looking for someone to blame, and practically begging for war, and you have a recipe for the rise of overt fascism in Europe.

Many have remarked that recent moves by the French president take several pages from the extreme right. Some have interpreted this as an attempt to prevent the right from capitalizing on the event, but it hasn't worked out that way, at all. (See also this article)

Taken on its own one might be inclined to interpret this as a political miscalculation, but what if it's not? Hollande's actions don't make much sense if we view him as an independent leader, but they make perfect sense if you understand that he's just a puppet.

The powers seized by Holland following the Charlie Hebdo and Paris Attacks, are not suited for the political left. The left is held back by the need to maintain a soft spoken, inclusive veneer. Those rising up to replace them will not be.

The right will not scale back these powers. They will expand them, and they will use them, even more than they are being used now.

It's the left, right, left, right two step to tyranny.

Problem, Reaction, Solution

This formula is not new. These tactics are not original, nor are the motives or response. Like the American public following 9/11, it's going to take the European population quite some time to realize where they are being led, and they're only going to come to that realization if those who see what is happening have the courage to speak out.

And make no mistake, this is just the beginning. They'll take it as far as you let them.

Source: 

http://stormcloudsgathering.com/paris-attacks

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What If The "Crash" Is As Rigged As Everything Else?

Take your pick--here's three good reasons to engineer a "crash" that benefits the few at the expense of the many. 

By Charles Hugh Smith
August 25, 2015
Of Two Minds

Take your pick--here's three good reasons to engineer a "crash" that benefits the few at the expense of the many.

There is an almost touching faith that markets are rigged when they loft higher, but unrigged when they crash. Who's to say this crash isn't rigged? A few things about this "crash" (11% decline from all time highs now qualifies as a "crash") don't pass the sniff test.

Exhibit 1: VIX volatility Index soars to "the world is ending" levels when the S&P 500 drops a relatively modest 11%. The VIX above 50 is historically associated with declines of 20% or more--double the current drop.

When the VIX spiked above 50 in 2008, the market ended up down 57%. Now that's a crash.

Exhibit 2: The VIX soared and the market cratered at the end of options expiration week (OEX), maximizing pain for the majority of punters. Generally speaking, OEX weeks are up. The exceptions are out of the blue lightning bolts such as the collapse of a major investment bank.

Was a modest devaluation in China's yuan really that unexpected, given the yuan's peg to the U.S. dollar which has risen 20% in the past year? Sorry, that doesn't pass the sniff test.

 

Exhibit 3: When the VIX spiked above 30 in October 2014, signaling panic, the Federal Reserve unleashed the Bullard Put, i.e. the Fed's willingness to unleash stimulus in the form of QE 4. Markets reversed sharply and the VIX collapsed.

Now the VIX tops 50 and the Federal Reserve issues an absurd statement that it doesn't respond to equity markets. Well then what was the Bullard Put in October, 2014? Mere coincidence? Sorry, that doesn't pass the sniff test.

Why would "somebody" engineer a mini-crash and send volatility to "the world is ending" levels? There are a couple of possibilities.

1. The Shock Doctrine. Naomi Klein's landmark study of how manufactured crises are used to justify further consolidation of power, The Shock Doctrine: The Rise of Disaster Capitalism, provides a blueprint for how financial crises set the stage for policies that extend the power of central and private banks and various state-private sector players.

A soaring VIX and sudden crash certainly softens up the system for the next policy squeeze.

2. A "crash" engineered to set up a buying opportunity for insiders. When easy gains get scarce, what better way to skim a quick 10% than engineer a "crash," scoop up shares dumped by panicked punters and momo-following HFT bots spooked by "the world is ending" VIX spike, and then reverse the "crash" with another round of happy talk?

3. Settling conflicts within the Deep State. I have covered the Deep State for years, in a variety of contexts--for example:

Is the Deep State Fracturing into Disunity? (March 14, 2014)

The Dollar and the Deep State (February 24, 2014)

Surplus Repression and the Self-Defeating Deep State (May 26, 2015)

Without going into details that deserve a separate essay, we can speculate that key power centers with the Deep State have profoundly different views about Imperial priorities.

One nexus of power engineers a trumped-up financial crisis (i.e. a convenient "crash") to force the hand of opposing power centers. As I have speculated here before, the rising U.S. dollar is anathema to Wall Street and its apparatchiks, while a rising USD is the cat's meow to those with a longer and more strategic view of dollar hegemony.

Take your pick--here's three good reasons to engineer a "crash" that benefits the few at the expense of the many.

Sources:
http://www.zerohedge.com/news/2015-08-26/what-if-crash-rigged-everything-else
http://charleshughsmith.blogspot.com/2015/08/what-if-crash-is-as-rigged-as.html
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Devaluation Stunner

China Has Dumped $100 Billion In Treasuries In The Past Two Weeks

By Tyler Durden
August 25, 2015
Zero Hedge

On August 11, China devalued its currency, and in the subsequent 3 days the onshore Yuan, the CNY, tumbled by some 4% against the dollar. Then, as if by magic, the CNY stabilized when China started intervening massively, only this time not through the fixing, but in the actual FX market.

This means that while China has previously been dumping reserves as a matter of FX policy, after August 11 it was intervening directly in the FX market, with the intervention said to really pick up after the FOMC Minutes on August 19, the same day the market finally topped out, and has tumbled into a correction since then. The result was the same: massive FX reserve liquidations to defend the currency one way or the other.

And yet something curious emerges when comparing the traditionally tight, and inverse, relationship between the S&P and the Treausry long-end: the tumble in stocks has not been anywhere near as profound as the jump in yields. In fact, the 30 Year is wider now than where it was the day China announced the Yuan devaluation.

Why is that?

We hinted at the answer on two occasions earlier (here and here) and yet the point is so critical, and was missed by virtually all readers, that it deserves to be repeated once again: as part of China's devaluation and subsequent attempts to contain said devaluation, it has been purging foreign reserves at an epic pace. Said otherwise, China has sold an epic amount of Treasurys in the past two weeks.

How epic? We turn it over to SocGen once again:

The PBoC cut the RRR for all banks by 50bp and offered additional reductions for leasing companies (300bp) and rural banks (50bp). All these will take effect as of 6 September, and the total amount of liquidity injected will be close to CNY700bn, or $106bn based on today's onshore exchange rate.  In perspective, the PBoC may have sold more official FX reserves than this amount since the currency regime change on 11 August.

There you have it: in the past two weeks alone China has sold a gargantuan $106 (or more) billion in US paper just as a result of the change in the currency regime!

But wait, there's more: recall that one months ago we posted that "China's Record Dumping Of US Treasuries Leaves Goldman Speechless" in which we reported that China has sold some $107 billion in Treasurys since the start of 2015.

When we did that article, we too were quite shocked at that number. However, we - just like Goldman - are absolutely speechless to find out that China has sold as much in Treasurys in the past 2 weeks, over $100 billion, as it has sold in the entire first half of the year!

In retrospect, it is absolutely amazing that the 10 and 30 Year Bonds have cratered considering the amount of concentrated selling by China.

But the bigger question is how much more does China have left to sell, if this pace of outflows continues. Here is SocGen again:

From an operational perspective, China's FX reserves are estimated to be two-thirds made up of relatively liquid assets. According to TIC data, China held $1,271bn US treasuries end-June 2015, but treasury bills and notes accounted for only $3.1bn. The currency composition is said to be similar to the IMF's COFER data: 2/3 USD, 1/5 EUR and 5% each of GBP and JPY. Given that EUR and JPY depreciation contributed the most to the RMB's NEER appreciation in the past year, it is plausible that

the PBoC may not limit its intervention to selling only USD-denominated assets.

* * *

China's FX reserves are still 134% of the recommended level, or in other words, around $900bn (1/4 of total) and can be used for currency intervention without severely impacting China's external position.

Should the current pace of liquidity outflows continue, and require the dumping of $100 billion in FX reserves, read US Treasurys, every two weeks this means China has, oh, call it some 18 weeks of intervention left.

What happens when China liquidates all of its Treasury holdings is anyone's guess, and an even better question is will anyone else decide to join China as its sells US Treasurys at a never before seen pace, and best of all: will the Fed just sit there and watch as the biggest offshore holder of US Treasurys liquidates its entire inventory...

Source:

http://www.zerohedge.com/news/2015-08-25/devaluation-stunner-china-has-dumped-100-billion-treasurys-past-two-weeks

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Is Trump Worse Than Hitler?

Trump is worse than Hitler. Be very afraid.

August 24, 2015
Clusterfuck Nation
By James H. Kunstler


Even the formerly august New York Times grants that Donald J. Trump has ignited a voter firestorm of grievance against a dumb show election process that rewards a craven avoidance of real issues. Immigration is actually a stand-in for the paralysis, incompetence, overreach, and bloatedness of government generally in our time — but it is a good doorway into the larger problem.

Immigration is a practical problem, with visible effects on-the-ground, easy to understand. I’m enjoying the Trump-provoked debate mostly because it is a pushback against the disgusting dishonesty of political correctness that has bogged down the educated classes in a swamp of sentimentality.

For instance, Times Sunday Magazine staffer Emily Bazelon wrote a polemic last week inveighing against the use of the word “illegal” applied to people who cross the border without permission on the grounds that it “justifies their mistreatment.” One infers she means that sending them back where they came from equals mistreatment.

It’s refreshing that Trump is able to cut through this kind of tendentious crap. If that were his only role, it would be a good one, because political correctness is an intellectual disease that is making it impossible for even educated people to think — especially people who affect to be political leaders. Trump’s fellow Republicans are entertainingly trapped in their own cowardliness and it’s fun to watch them squirm.

But for me, everything else about Trump is frankly sickening, from his sneering manner of speech, to the worldview he reveals day by day, to the incoherence of his rhetoric, to the wolverine that lives on top of his head. The thought of Trump actually getting elected makes me wonder where Arthur Bremer is when we really need him.

Did any of you actually catch Trump’s performance last week at the so-called “town meeting” event in New Hampshire (really just a trumped-up pep rally)? I don’t think I miscounted that Trump told the audience he was “very smart” 23 times in the course of his remarks. If he really was smart, he would know that such tedious assertions only suggest he is deeply insecure about his own intelligence. After all, this is a man whose lifework has been putting up giant buildings that resemble bowling trophies, some of them in the service of one of the worst activities of our time, legalized gambling, which is based on the socially pernicious idea that it’s possible to get something for nothing.

I daresay that legalized gambling has had a possibly worse effect on American life the past three decades than illegal immigration. Gambling is a marginal activity for marginal people that belongs on the margins — the back rooms and back alleys. It was consigned there for decades because it was understood that it’s not healthy for the public to believe that it’s possible to get something for nothing, that it undermines perhaps the most fundamental principle of human life.

Trump’s verbal incoherence is really something to behold. He’s incapable of expressing a complete thought without venturing down a dendritic maze of digressions, often leading to an assertion of how much he is loved (another sign of insecurity). For example, when he attacked Jeb’s (no last name necessary) statement that we have to show Iraqi leaders that “we have skin in the game,” Trump invoked the “wounded warriors,” saying “I love them. They’re everywhere. They love me.” In the immortal words of Tina Turner, “what’s love got to do with it?”

Trump’s notion that he can push around world leaders such as Vladimir Putin by treating them as though they were president of the Cement Workers’ Union ought to give thoughtful people the vapors. It doesn’t seem to occur to Trump that other countries could easily get pugnacious towards us. He would have us in a world war before the inaugural parade was over.

The trouble is that it’s not inconceivable Trump could get elected. Farfetched, perhaps, but not out of the question. The USA is heading for a very rough patch of history — as those of you with your eyes on the stock indexes lately may suspect. The country stands an excellent chance of waking up some morning soon to discover it is broke and broken. When that happens, all the anxiety and animus will be focused on looking for scapegoats, and they are likely to be the wrong ones.  

World leaders considered Hitler a clown in the early going, too, you know. But the Germans were wild about him. He pushed a lot of the right buttons under the circumstances. Trump is worse than Hitler. And the American people, alas, are now surely a worse lot of ignorant, raging, tattooed slobs than the German people were in 1933. Be very afraid.

Sources:
http://www.zerohedge.com
http://kunstler.com/clusterfuck-nation/worse-than-hitler/
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THE REVOLT AGAINST THE RULING CLASS

Don’t confuse this for the publics typical attraction to candidates posing as political outsiders who’ll clean up the mess, even when they’re really insiders who contributed to the mess. 

8/5/2015
By Robert Reich
ROBERTREICH.ORG


“He can’t possibly win the nomination,” is the phrase heard most often when Washington insiders mention either Donald Trump or Bernie Sanders.

Yet as enthusiasm for the bombastic billionaire and the socialist senior continues to build within each party, the political establishment is mystified.

Political insiders don’t see that the biggest political phenomenon in America today is a revolt against the “ruling class” of insiders that have dominated Washington for more than three decades.

In two very different ways, Trump and Sanders are agents of this revolt. I’ll explain the two ways in a moment.

Don’t confuse this for the public’s typical attraction to candidates posing as political outsiders who’ll clean up the mess, even when they’re really insiders who contributed to the mess.

What’s new is the degree of anger now focused on those who have had power over our economic and political system since the start of the 1980s.

Included are presidents and congressional leaders from both parties, along with their retinues of policy advisors, political strategists, and spin-doctors.

Most have remained in Washington even when not in power, as lobbyists, campaign consultants, go-to lawyers, financial bundlers, and power brokers.

The other half of the ruling class comprises the corporate executives, Wall Street chiefs, and multi-millionaires who have assisted and enabled these political leaders – and for whom the politicians have provided political favors in return.

America has long had a ruling class but the public was willing to tolerate it during the three decades after World War II, when prosperity was widely shared and when the Soviet Union posed a palpable threat. Then, the ruling class seemed benevolent and wise.

Yet in the last three decades – when almost all the nation’s economic gains have gone to the top while the wages of most people have gone nowhere – the ruling class has seemed to pad its own pockets at the expense of the rest of America.

We’ve witnessed self-dealing on a monumental scale – starting with the junk-bond takeovers of the 1980s, followed by the Savings and Loan crisis, the corporate scandals of the early 2000s (Enron, Adelphia, Global Crossing, Tyco, Worldcom), and culminating in the near meltdown of Wall Street in 2008 and the taxpayer-financed bailout.

Along the way, millions of Americans lost their jobs their savings, and their homes.

Meanwhile, the Supreme Court has opened the floodgates to big money in politics wider than ever. Taxes have been cut on top incomes, tax loopholes widened, government debt has grown, public services have been cut. And not a single Wall Street executive has gone to jail.

The game seems rigged – riddled with abuses of power, crony capitalism, and corporate welfare.

In 1964, Americans agreed by 64% to 29% that government was run for the benefit of all the people. By 2012, the response had reversed, with voters saying by 79% to 19% that government was “run by a few big interests looking after themselves.”

Which has made it harder for ordinary people to get ahead. In 2001 a Gallup poll found 77 percent of Americans satisfied with opportunities to get ahead by working hard and 22 percent dissatisfied. By 2014, only 54 percent were satisfied and 45 percent dissatisfied.

The resulting fury at ruling class has taken two quite different forms.

On the right are the wreckers. The Tea Party, which emerged soon after the Wall Street bailout, has been intent on stopping government in its tracks and overthrowing a ruling class it sees as rotten to the core.

Its Republican protégés in Congress and state legislatures have attacked the Republican establishment. And they’ve wielded the wrecking balls of government shutdowns, threats to default on public debt, gerrymandering, voter suppression through strict ID laws, and outright appeals to racism.

Donald Trump is their human wrecking ball. The more outrageous his rants and put downs of other politicians, the more popular he becomes among this segment of the public that’s thrilled by a bombastic, racist, billionaire who sticks it to the ruling class.

On the left are the re-builders. The Occupy movement, which also emerged from the Wall Street bailout, was intent on displacing the ruling class and rebuilding our political-economic system from the ground up.

Occupy didn’t last but it put inequality on the map. And the sentiments that fueled Occupy are still boiling.

Bernie Sanders personifies them. The more he advocates a fundamental retooling of our economy and democracy in favor of average working people, the more popular he becomes among those who no longer trust the ruling class to bring about necessary change.

Yet despite the growing revolt against the ruling class, it seems likely that the nominees in 2016 will be Jeb Bush and Hillary Clinton. After all, the ruling class still controls America.

But the revolt against the ruling class won’t end with the 2016 election, regardless.

Which means the ruling class will have to change the way it rules America. Or it won’t rule too much longer.

Source:
http://robertreich.org/post/125702366950
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