Sunday, April 21, 2024

The Intel Agencies Of Government Are Fully Weaponized

  This is a rather long post but probably one of the most interesting article I have ever posted. 

  It follows on my previous article concerning the control of Congress by the deep state but extend the scope to the whole US Government and details the full control mechanism.  

  It explains how people who killed a president then later invented the concept of conspiracy theories to muddy the tracks leading to their own crime, slowly but relentlessly took over the US Government. 

  It explains why, what you're left with at the highest level of power in America are either incompetent stooges or corrupt criminals and why "the system" has no problem contemplating the re-election of a President obviously senile. Biden's Uncle may or may not have been eaten by cannibals in Papua New Guinea but his government has definitively been eaten by the CIA whole. In any case, whatever he says has no importance or consequences whatsoever. The only decisions he is making nowadays is the flavor of his ice cream cones on the beach in Delaware! 

  In all likelihood, the Presidency of Joe Biden will mark the end of democracy in America. As usual, the trappings of the system will remain in place although the actual functioning will be completely hollowed out. The next presidency will be a show and a shamble. The economy will crash and people will have no say whatsoever in what comes next. But that's another story. Here's how the current state of affairs unwrapped:

Authored by 'sundance' via TheConservativeTreehouse.com,

Barack Obama and Eric Holder did not create a weaponized DOJ and FBI; instead, what they did was take the preexisting system and retool it so the weapons only targeted one side of the political continuum.  This point is where many people understandably get confused...

In the era shortly after 9/11, the DC national security apparatus was constructed to preserve continuity of government and simultaneously view all Americans as potential threats.  The Department of Homeland Security (DHS) and the Office of the Director of National Intelligence (ODNI) were created specifically for this purpose.

What Barack Obama and Eric Holder did with that new construct was refine the internal targeting mechanisms so that only their ideological opposition became the target of the new national security system.  This is very important to understand as you dig deeper into this research outline.

Washington DC created the modern national security apparatus immediately and hurriedly after 9/11/01.  DHS came along in 2002, and within the Intelligence Reform and Terrorism Prevention Act of 2004 the ODNI was formed.  When Barack Obama and Eric Holder arrived a few years later, those newly formed institutions were viewed as opportunities to create a very specific national security apparatus that would focus almost exclusively against their political opposition.

The preexisting Federal Bureau of Investigation (FBI) and Dept of Justice (DOJ) were then repurposed to become two of the four pillars of the domestic national security apparatus.  However, this new construct would have a targeting mechanism based on political ideology.  The DHS, ODNI, DOJ and FBI became the four pillars of this new institution.  Atop these pillars is where you will find the Fourth Branch of Government.

We were not sleeping when this happened, we were wide awake.  However, we were stunningly distracted by the economic collapse that was taking place in 2006 and 2007 when the engineers behind Obama started to assemble the design.  By the time Obama took office in 2009, we sensed something profound was shifting, but we can only see exactly what shifted in the aftermath.  The four pillars were put into place, and a new Fourth Branch of Government was quietly created.

As time passed, and the system operators became familiar with their new tools, technology allowed the tentacles of the system to reach out and touch us. That is when we first started to notice that something very disconcerting was happening.  Those four pillars are the root of it, and if we take the time to understand how the Fourth Branch originated, questions about this current state of perpetual angst will start to make sense.

Grab a cup of your favorite beverage, and take a walk with me as we outline how this was put together.  You might find many of the questions about our current state of political affairs beginning to make a lot more sense.

Remember, it is not my intent to outline the entire history of how we got to this place where the intelligence community now acts as the superseding fourth branch of government. Such an effort would be exhausting and likely take our discussion away from understanding the current dynamic.

History provided enough warnings from Dwight D. Eisenhower (military), to John F. Kennedy (CIA), to Richard Nixon (FBI), to all modern versions of warnings and frustrations from HPSCI Devin Nunes and ODNI Ric Grenell. None of those prior reference points are invalid, and all documented outlines of historic reference are likely true and accurate. However, a generational review is not useful, as the reference impacting us ‘right now‘ gets lost.

Instead, we pick up the expansive and weaponized intelligence system as it manifests after 9/11/01, and my goal is to highlight how the modern version of the total intelligence apparatus has now metastasized into a Fourth Branch of Government. It is this superseding branch that now touches and influences every facet of our life.

If we take the modern construct, originating at the speed of technological change, we can also see how the oversight or “check/balance” in our system of government became functionally obsolescent.

After many years of granular research about the intelligence apparatus inside our government, in the summer of 2020 I visited Washington DC to ask specific questions. My goal was to go where the influence agents within government actually operate, and to discover the people deep inside the institutions no one elected and few people pay attention to.

It was during this process when I discovered how information is purposefully put into containment silos; essentially a formal process to block the flow of information between agencies and between the original branches. While frustrating to discover, the silo effect was important because understanding the communication between networks leads to our ability to reconcile conflict between what we perceive and what’s actually taking place.

After days of research and meetings in DC during 2020; amid a town that was serendipitously shut down due to COVID-19; I found a letter slid under the door of my room in a nearly empty hotel with an introduction of sorts. The subsequent discussions were perhaps the most important. After many hours of specific questions and answers on specific examples, I realized why our nation is in this mess. That is when I discovered the fourth and superseding branch of government, the Intelligence Branch.

I am going to explain how the Intelligence Branch works:

(1) to control every other branch of government;

(2) how it functions as an entirely independent branch of government with no oversight;

(3) how and why it was created to be independent from oversight;

(4) what is the current mission of the IC Branch,

and most importantly (5) who operates it.

The Intelligence Branch is an independent functioning branch of government, it is no longer a subsidiary set of agencies within the Executive Branch as most would think. To understand the Intelligence Branch, we need to drop the elementary school civics class lessons about three coequal branches of government and replace that outlook with the modern system that created itself.

The Intelligence Branch functions much like the State Dept, through a unique set of public-private partnerships that support it. Big Tech industry collaboration with intelligence operatives is part of that functioning; almost like an NGO. However, the process is much more important than most think. In this problematic perspective of a corrupt system of government, the process is the flaw – not the outcome.

There are people making decisions inside this little known, unregulated and out-of-control branch of government that impact every facet of our lives.

None of the people operating deep inside the Intelligence Branch were elected, and our elected representative House members genuinely do not know how the system works. I assert this position affirmatively because I have talked to House and Senate staffers, including the chiefs of staff for multiple House & Senate committee seats. They are not malicious people; however, they are genuinely clueless of things that happen outside their silo. That is part of the purpose of me explaining it, with examples, in full detail with sunlight.

We begin….

In April of 2016, the FBI launched a counterintelligence operation against presidential candidate Donald Trump. The questioning about that operation is what New York Representative Elise Stefanik cites in March of 2017, approximately 11 months later (First Two Minutes).

Things to note:

  • Notice how FBI Director James Comey just matter-of-factly explains no one outside the DOJ was informed about the FBI operation. Why? Because that’s just the way things are done. His justification for unilateral operations was “because of the sensitivity of the matter“, totally ignoring any constitutional or regulatory framework for oversight; because, well, quite simply, there isn’t any. The intelligence apparatus inside the DOJ/FBI can, and does, operate based on their own independent determinations of authority.

  • Notice also how FBI Director Comey shares his perspective that informing the National Security Council (NSC) is the equivalent of notifying the White House. The FBI leadership expressly believe they bear no responsibility to brief the Chief Executive. As long as they tell some unknown, unelected, bureaucratic entity inside the NSC, their unwritten responsibility to inform the top of their institutional silo is complete. If the IC wants to carve out the Oval Office, they simply plant information inside the NSC and, from their perspective, their civic responsibility to follow checks-and-balances is complete. This is an intentional construct.

  • Notice how Comey obfuscates notification to the Director of National Intelligence (DNI), by avoiding the fact James Clapper was the DNI from outset of the counterintelligence operation throughout the remainder of Obama’s term. When I get deeper into the process, we will understand how the Intelligence Branch has intentionally used the creation of the DNI position (established post 9/11/01) as a method to avoid oversight, not enhance it. Keeping an oblivious doofus like James Clapper in position held strategic value [Doofus Reminder HERE].

That video of James Comey being questioned by Elise Stefanik was the first example given to me by someone who knew the background of everything that was taking place preceding that March 20, 2017, hearing. That FBI reference point is a key to understand how the Intelligence Branch operates with unilateral authority above Congress (legislative branch), above the White House (executive branch), and even above the court system (judicial branch).

Also, watch this short video of James Clapper because it is likely many readers have forgotten, and likely even more readers have never seen it.  Watch closely how then White House national security adviser John Brennan is responding in that video.  This is before Brennan became CIA Director, this is when Brennan was helping Barack Obama put the pillars into place.  WATCH:

[Sidebar: Every time I post this video it gets scrubbed from YouTube (example), so save it if you ever want to see it again.]

The video of James Clapper highlights how the ODNI position (created with good national security intention) ended up becoming the fulcrum for modern weaponization, and is now an office manipulated by agencies with a vested interest in retaining power. The Intelligence Branch holds power over the ODNI through their influence and partnership with the body that authorizes the power within it, the Senate Select Committee on Intelligence (SSCI).

Factually, the modern intelligence apparatus uses checks and balances in their favor. The checks create silos of proprietary information, classified information, vaults of information that work around oversight issues. The silos are part of the problem.

Ironically, the Office of the Director of National Intelligence was created in the aftermath of 9/11/01 expressly to eliminate the silos of information which they felt led to a domestic terrorist attack that could have been prevented. The ODNI was created specifically upon the recommendation of the 9/11 commission.

The intent was to create a central hub of intelligence information, inside the Executive Branch, where the CIA, NSA, DoD, DoS, and DIA could deposit their unique intelligence products and a repository would be created so that domestic intelligence operations, like the DOJ and FBI could access them when needed to analyze threats to the U.S. This, they hoped, would ensure the obvious flags missed in the 9/11 attacks would not be missed again.

The DNI office created a problem for those who operate in the shadows of proprietary information. You’ll see how it was critical to install a person uniquely skilled in being an idiot, James Clapper, into that willfully blind role while intelligence operatives worked around the office to assemble the Intelligence Branch of Government.

  • The last federal budget that flowed through the traditional budgetary process was signed into law in September of 2007 for fiscal year 2008 by George W. Bush. Every budget since then has been a fragmented process of continuing resolutions and individual spending bills.

Why does this matter? Because many people think defunding the Intelligence Community is a solution; it is not…. at least, not yet. Worse yet, the corrupt divisions deep inside the U.S. intelligence system can now fund themselves from multinational private sector partnerships (banks, corporations and foreign entities).

  • When Democrats took over the House of Representatives in January 2007, they took office with a plan. Nancy Pelosi became Speaker, and Democrats controlled the Senate where Harry Reid was Majority Leader. Barack Obama was a junior senator from Illinois.

Pelosi and Reid intentionally did not advance a budget in 2008 (for fiscal year 2009) because their plan included installing Barack Obama (and all that came with him) with an open checkbook made even more lucrative by a worsening financial crisis and a process called baseline budgeting. Baseline budgeting means the prior fiscal year budget is accepted as the starting point for the next year budget. All previous expenditures are baked into the cake within baseline budgeting.

Massive bailouts preceded Obama’s installation due to U.S. economic collapse, and massive bailouts continued after his installation. This is the ‘never let a crisis go to waste’ aspect. TARP (Troubled Asset Recovery Program), auto bailouts (GM), and the massive stimulus spending bill, the American Recovery and Reinvestment Act (ARRA, ie. those shovel ready jobs) were all part of the non budget spending. The federal reserve assisted with Quantitative Easing (QE1 and QE2) as congress passed various Porkulous spending bills further spending and replacing the formal budget process.

Note: There has never been a budget passed in the normal/traditional process since September of 2007.

  • While Obama’s radical ‘transformation‘ was triggered across a broad range of government institutions, simultaneously spending on the U.S. military was cut, but spending on the intelligence apparatus expanded. We were all distracted by Obamacare, and the Republican party wanted to keep us that way. However, in the background there was a process of transformation taking place that included very specific action by Eric Holder and targeted effort toward the newest executive agency the ODNI.

The people behind Obama, those same people now behind Joe Biden, knew from years of strategic planning that ‘radical transformation’ would require control over specific elements inside the U.S. government. Eric Holder played a key role in his position as U.S. Attorney General in the DOJ.

AG Holder recruited ideologically aligned political operatives who were aware of the larger institutional objectives. One of those objectives was weaponizing the DOJ-National Security Division (DOJ-NSD) a division inside the DOJ that had no inspector general oversight. For most people the DOJ-NSD weaponization surfaced with a hindsight awakening of the DOJ-NSD targeting candidate Donald Trump many years later. However, by then the Holder crew had executed almost eight full years of background work.

  • The second larger Obama/Holder objective was control over the FBI. Why was that important? Because the FBI does the domestic investigative work on anyone who needs or holds a security clearance. The removal of security clearances could be used as a filter to further build the internal ideological army they were assembling. Additionally, with new power in the ODNI created as a downstream consequence of the Patriot Act, new protocols for U.S. security clearances were easy to justify.

Carefully selecting fellow ideological travelers was facilitated by this filtration within the security clearance process. How does that issue later manifest?   Just look around at how politicized every intelligence agency has become, specifically including the FBI.

  • At the exact same time this new background security clearance process was ongoing, again everyone distracted by the fight over Obamacare, inside the Department of State (Secretary Hillary Clinton) a political alignment making room for the next phase was being assembled. Names like Samantha Power, Susan Rice and Hillary Clinton were familiar on television while Lisa Monaco worked as a legal liaison between the Obama White House and Clinton State Department.

Through the Dept of State (DoS) the intelligence apparatus began working on their first steps to align Big Tech with a larger domestic institutional objective. Those of you who remember the “Arab Spring”, some say “Islamist Spring”, will remember it was triggered by Barack Obama’s speech in Cairo – his first foreign trip. The State Department worked with grassroots organizers (mostly Muslim Brotherhood) in Egypt, Syria, Bahrain, Qatar and Libya. Obama leaned heavily on the organizational network of Turkish President Recep Erdogan for contacts and support.

Why does this aspect matter to us? Well, you might remember how much effort the Obama administration put into recruiting Facebook and Twitter as resources for the various mideast rebellions the White House and DoS supported. This was the point of modern merge between the U.S. intelligence community and Big Tech social media.

In many ways, the coordinated political outcomes in Libya and Egypt were the beta test for the coordinated domestic political outcomes we saw in the 2020 U.S. presidential election. The U.S. intelligence community working with social media platforms and political operatives.

Overlaying all of that background activity was also a new alignment of the Obama-era intelligence apparatus with ideological federal “contractors“. Where does this contractor activity manifest? In the FISA Court opinion of Rosemary Collyer who cited the “interagency memorandum of understanding”, or MOU.

Hopefully, you can see a small part of how tentacled the system to organize/weaponize the intelligence apparatus was. None of this was accidental, all of this was by design, and the United States Senate was responsible for intentionally allowing most of this to take place.

That’s the 30,000/ft level backdrop history of what was happening as the modern IC was created. Next we will go into how all these various intelligence networks began working in unison and how they currently control all of the other DC institutions under them; including how they can carve out the President from knowing their activity.

  • When Barack Obama was installed in January 2009, the Democrats held a 60 seat majority in the U.S. Senate. As the people behind the Obama installation began executing their longer-term plan, the Senate Select Committee on Intelligence was a tool to create the Intelligence Branch; it was not an unintentional series of events.

When Obama was installed, Dianne Feinstein was the Chair of the Senate Select Committee on Intelligence (SSCI), and Democrat operative Dan Jones was her lead staffer. Feinstein was completely controlled by those around her including Senate Majority Leader Harry Reid. The CIA was in the process of turning over personnel following the Bush era, and as a result of a massive multi-year narrative of diminished credibility (Iraq WMD), a deep purge was underway. Obama/Holder were in the process of shifting intelligence alignment and the intensely political Democrat Leader Harry Reid was a key participant.

THE TRAP – Many people say that Congress is the solution to eliminating the Fourth and superseding Branch of Government, the Intelligence Branch. This is an exercise in futility because the Legislative Branch, specifically the SSCI, facilitated the creation of the Intelligence Branch. The SSCI cannot put the genie they created back in the bottle without admitting they too are corrupt; and the background story of their corruption is way too intense to be exposed now.

Every member of the SSCI is compromised in some controlling manner. Those Senators who disliked the control over them; specifically disliked because the risk of sunlight was tenuous and, well, possible; have either left completely or stepped down from the committee. None of the SSCI members past or present would ever contemplate saying openly what their tenure involved.

[Note: You might remember when Vice Chairman Mark Warner’s text messages surfaced, there was a controlled Republican SSCI member who came to his defense in February of 2018. It was not accidental that exact Senator later became the chair of the SSCI himself. That Republican Senator is Marco Rubio, now vice-chair since the Senate re-flipped back to the optics of Democrat control in 2021.]

All of President Obama’s 2009 intelligence appointments required confirmation from the Senate. The nominees had to first pass through the Democrat controlled SSCI, and then to a full Senate vote where Democrats held a 60 vote majority. Essentially, Obama got everyone he wanted in place easily. Rahm Emmanuel was Obama’s Chief of Staff, and Valerie Jarrett was Senior Advisor.

Tim Geithner was Treasury Secretary in 2010 when the joint DOJ/FBI and IRS operation to target the Tea Party took place after the midterm “shellacking” caused by the Obamacare backlash. Mitch McConnell was Minority Leader in the Senate but supported the targeting of the Tea Party as his Senate colleagues were getting primaried by an angry and effective grassroots campaign. McConnell’s friend, Senator Bob Bennett,  getting beaten in Utah was the final straw.

Dirty Harry and Mitch McConnell saw the TEA Party through the same prism. The TEA Party took Kennedy’s seat in Massachusetts (Scott Brown); Sharon Angle was about to take out Harry Reid in Nevada; Arlen Spector was taken down in Pennsylvania; Senator Robert Byrd died; Senator Lisa Murkowski lost her primary to Joe Miller in Alaska; McConnell’s nominee Mike Castle lost to Christine O’Donnell in Delaware; Rand Paul won in Kentucky. This is the background. The peasants were revolting…. and visibly angry Mitch McConnell desperately made a deal with the devil to protect himself.

In many ways, the TEA Party movement was/is very similar to the MAGA movement. The difference in 2010 was the absence of a head of the movement, in 2015 Donald Trump became that head figure who benefited from the TEA Party energy. Trump came into office in 2017 with the same congressional opposition as the successful TEA Party candidates in 2011.

Republicans took control of the Senate following the 2014 mid-terms. Republicans took control of the SSCI in January 2015. Senator Richard Burr became chairman of the SSCI, and Dianne Feinstein shifted to Vice-Chair. Dirty Harry Reid left the Senate, and Mitch McConnell took power again.

Republicans were in control of the Senate Intelligence Committee in 2015 when the Intelligence Branch operation against candidate Donald Trump was underway. [Feinstein’s staffer, Dan Jones, left the SSCI so he could act as a liaison and political operative between private-sector efforts (Fusion GPS, Chris Steele) and the SSCI.] The SSCI was a participant in that Fusion-GPS/Chris Steele operation, and as a direct consequence Republicans were inherently tied to the problem with President Trump taking office in January of 2017. Indiana Republican Senator Dan Coats was a member of the SSCI.

Bottom line…. When it came to the intelligence system targeting Donald Trump during the 2015/2016 primary, the GOP was just as much at risk as their Democrat counterparts.

When Trump unexpectedly won the 2016 election, the SSCI was shocked more than most. They knew countermeasures would need to be deployed to protect themselves from any exposure of their intelligence conduct. Dianne Feinstein stepped down, and Senator Mark Warner was elevated to Vice Chairman.

Indiana’s own Mike Pence, now Vice President, recommended fellow Hoosier, SSCI Senator Dan Coats, to become President Trump’s Director of National Intelligence (ODNI). [Apply hindsight here]

  • To give an idea of the Intelligence Branch power dynamic, remind yourself how House Permanent Select Committee on Intelligence (HPSCI), Chairman Devin Nunes, tried to get access to the DOJ/FBI records of the FISA application used against the Trump campaign via Carter Page.

Remember, Devin Nunes only saw a portion of the FISA trail from his review of a Presidential Daily Brief (PDB) previously given to President Obama. Chairman Nunes had to review the PDB at the White House SCIF due to compartmented intelligence, another example of the silo benefit.

Remember the massive stonewalling and blocking of the DOJ/FBI toward Nunes? Remember the back and forth battle over declassification surrounding the Nunes memo?

Remember, after Nunes went directly to House Speaker Paul Ryan for help (didn’t get any), the DOJ only permitted two members from each party within the HPSCI to review the documents, and only at the DOJ offices of main justice?

Contrast that amount of House Intel Committee railroading and blocking by intelligence operatives in the DOJ, DOJ-NSD and FBI, with the simple request by Senate Intelligence Vice Chairman Mark Warner asking to see the Carter Page FISA application and immediately a copy being delivered to him on March 17th 2017.

Can you see which intelligence committee is aligned with the deepest part of the deep state?

Oh, how quickly we forget:

The contrast of ideological alignment between the House, Senate and Intelligence Branch is crystal clear when viewed through the prism of cooperation. You can see which legislative committee holds the power and support of the Intelligence Branch. The Senate Intel Committee facilitates the corrupt existence of the IC Branch, so the IC Branch only cooperates with the Senate Intel Committee. It really is that simple.

  • The Intelligence Branch carefully selects its own members by controlling how security clearances are investigated and allowed (FBI). The Intelligence Branch also uses compartmentalization of intelligence as a way to keep each agency, and each downstream branch of government (executive, legislative and judicial), at arms length as a method to stop anyone from seeing the larger picture of their activity. I call this the “silo effect“, and it is done by design.

I have looked at stunned faces when I presented declassified silo product from one agency to the silo customers of another. You would be astonished at what they don’t know because it is not in their ‘silo’.

Through the advise and consent rules, the Intelligence Branch uses the SSCI to keep out people they consider dangerous to their ongoing operations. Any appointee to the intelligence community must first pass through the Senate Select Committee on Intelligence, before they get a full Senate vote. If the SSCI rejects the candidate, they simply refuse to take up the nomination. The president is then blocked from that appointment. This is what happened with President Trump over-and-over again.

  • Additionally, the Intelligence Branch protects itself, and its facilitating allies through the formal classification process. The Intelligence Branch gets to decide unilaterally what information will be released and what information will be kept secret. There is no entity outside the Intelligence Branch, and yes that includes the President of the United States, who can supersede the classification authority of the Intelligence Branch. {Go Deep} and {Go Deep} This is something 99.9% of the people on our side get totally and frustratingly wrong.

No one can declassify, or make public, anything the Intelligence Branch will not agree to. Doubt this?  Ask Ric Grenell, John Ratcliffe, or even President Trump himself.

  • The classification process is determined inside the Intelligence Branch, all by themselves. They get to choose what rank of classification exists on any work-product they create; and they get to decide what the classification status is of any work product that is created by anyone else. The Intelligence Branch has full control over what is considered classified information and what is not. The Intelligence Branch defines what is a “national security interest” and what is not. A great technique for hiding fingerprints of corrupt and illegal activity.

[For familiar reference see the redactions to Lisa Page and Peter Strzok text messages. The Intelligence Branch does all redactions.]

  • Similarly, the declassification process is a request by an agency, even a traditionally superior agency like the President of the United States, to the Intelligence Branch asking for them to release the information. The Intelligence Branch again holds full unilateral control. If the head of the CIA refuses to comply with the declassification instruction of the President, what can the president do except fire him/her? {Again, GO DEEPHow does the President replace the non-compliant cabinet member?  They have to go through the SSCI confirmation.  See the problem?

Yes, there are ways to break up the Intelligence Branch, but they do not start with any congressional effort. As you can see above, the process is the flaw – not the solution. Most conservative pundits have their emphasis on the wrong syllable. Their cornerstone is false.

For their own self-preservation, the Intelligence Branch has been interfering in our elections for years. The way to tear this apart begins with STATE LEVEL election reform that blocks the Legislative Branch from coordinating with the Intelligence Branch.

The extreme federalism approach is critical and also explains why Joe Biden has instructed Attorney General Merrick Garland to use the full power of the DOJ to stop state level election reform efforts. The worry of successful state level election control is also why the Intelligence Branch now needs to support the federal takeover of elections.

Our elections have been usurped by the Intelligence Branch. Start with honest elections and we will see just how much Democrat AND Republican corruption is dependent on manipulated election results. Start at the state level. Start there…. everything else is downstream.

People want examples, reference points for work the Intelligence Branch conducts, specifically how it protects itself.

Here is an example: Julian Assange.

Yes, the history of the U.S. national security apparatus goes back decades; however, the weaponization of that apparatus, the creation of an apex branch of government, the Intelligence Branch, originated –as we currently feel it– under President Barack Obama.

Obama took the foundational tools created by Bill Clinton and George W. Bush and used the intelligence system architecture to create a weapon for use in his fundamental transformation. An alliance of ideologues within government (intel community) and the private sector (big tech and finance) was assembled, and the largest government weapon was created. Think about this every time you take your shoes off at an airport.

After the weapon was assembled and tested (Arab Spring), the Legislative Branch was enjoined under the auspices of a common enemy, Donald J. Trump, an outsider who was a risk to every entity in the institutional construct of Washington DC. Trillions were at stake, and years of affluence and influence were at risk as the unholy alliance was put together.

To understand the risk that Julian Assange represented to U.S. Intelligence Branch interests, it is important to understand just how extensive the operations of the FBI/CIA were in 2016.

It is within the network of foreign and domestic intel operations where Intelligence Branch political tool, FBI Agent Peter Strzok, was working as a bridge between the CIA and FBI counterintelligence operations.

By now, people are familiar with the construct of CIA operations involving Joseph Mifsud, the Maltese professor generally identified as a western intelligence operative who was tasked by the FBI/CIA to run an operation against Trump campaign official George Papadopoulos in both Italy (Rome) and London. {Go Deep}

In a similar fashion, the FBI tasked U.S. intelligence asset Stefan Halper to target another Trump campaign official, Carter Page. Under the auspices of being a Cambridge Professor, Stefan Halper also targeted General Michael Flynn. Additionally, using assistance from a female FBI agent under the false name Azra Turk, Halper also targeted Papadopoulos.

The initial operations to target Flynn, Papadopoulos and Page were all based overseas. This seemingly makes the CIA exploitation of the assets and the targets much easier.

HPSCI Ranking Member Devin Nunes outlined how very specific exculpatory evidence was known to the FBI and yet withheld from the FISA application used against Carter Page that also mentions George Papadopoulos. The FBI also fabricated information in the FISA.

However, there is an aspect to the domestic U.S. operation that also bears the fingerprints of the international intelligence apparatus; only this time, due to the restrictive laws on targets inside the U.S., the CIA aspect is less prominent. This is where FBI Agent Peter Strzok working for both agencies was important.

Remember, it’s clear in the text messages Strzok had a working relationship with what he called their “sister agency”, the CIA. Additionally, former CIA Director John Brennan has admitted Strzok helped write the January 2017 Intelligence Community Assessment (ICA) which outlines the Russia narrative; and Peter Strzok wrote the July 31st, 2016, “Electronic Communication” that originated FBI operation “Crossfire Hurricane.” Strzok immediately used that EC to travel to London to debrief allied intelligence officials connected to the Australian Ambassador to the U.K, Alexander Downer.

In short, Peter Strzok acted as a bridge between the CIA and the FBI. The perfect type of FBI career agent for the Intelligence Branch and CIA Director John Brennan to utilize.

Fusion GPS founder Glenn Simpson hired CIA Open Source analyst Nellie Ohr toward the end of 2015; at appropriately the same time as “FBI Contractors” were identified exploiting the NSA database and extracting information on a specific set of U.S. persons, the 2015 GOP candidates for President.

It was also Fusion GPS founder Glenn Simpson who was domestically tasked with a Russian lobbyist named Natalia Veselnitskaya. A little reported Russian Deputy Attorney General named Saak Albertovich Karapetyan was working double agents for the CIA and Kremlin. Karapetyan was directing the foreign operations of Natalia Veselnitskaya, and Glenn Simpson was organizing her inside the U.S.

Glenn Simpson managed Veselnitskaya through the 2016 Trump Tower meeting with Donald Trump Jr. However, once the CIA/Fusion-GPS operation using Veselnitskaya started to unravel with public reporting… back in Russia Deputy AG Karapetyan died in a helicopter crash.

Simultaneously timed in late 2015 through mid 2016, there was a domestic FBI operation using a young Russian named Maria Butina tasked to run up against republican presidential candidates. According to Patrick Byrne, Butina’s private sector handler [NOTE: remember, the public-private sector partnership], it was FBI agent Peter Strzok who was giving Patrick Byrne the instructions on where to send Butina. {Go Deep}

All of this context outlines the extent to which the FBI/CIA was openly involved in constructing a political operation that eventually settled upon anyone in candidate Donald Trump’s orbit. The international operations of the Intelligence Branch were directed by the FBI/CIA; and the domestic operations were coordinated by Peter Strzok operating with a foot in both agencies. [Strzok gets CIA service coin]

Recap: 

  • Mifsud tasked against Papadopoulos (CIA).

  • Halper tasked against Flynn (CIA), Page (CIA), and Papadopoulos (CIA).

  • Azra Turk, pretending to be a Halper asst, tasked against Papadopoulos (FBI).

  • Veselnitskaya tasked against Donald Trump Jr (CIA, Fusion-GPS).

  • Butina tasked against Donald Trump Jr (FBI). All of these activities were coordinated.

Additionally, Christopher Steele was a British intelligence officer, hired by Fusion GPS to assemble and launder fraudulent intelligence information within his dossier. And we cannot forget Oleg Deripaska, a Russian oligarch, who was recruited by Asst. FBI Director Andrew McCabe to participate in running an operation against the Trump campaign and create the impression of Russian involvement. However, Deripaska refused to participate.

All of this foreign and domestic engagement was directly controlled by collaborating U.S. intelligence agencies from inside the Intelligence Branch. And all of this coordinated activity was intended to give a specific Russia influence/interference impression.

The key point of all that background context is to see how committed the Intelligence Branch was to the constructed narrative of Russia interfering with the 2016 election. The CIA, FBI, and by extension the DOJ and DOJ-NSD, put a hell of a lot of work into it.

We also know that John Durham looked at the construct of the Intelligence Community Assessment (ICA); and talked to CIA analysts who participated in the construct of the January 2017 report that bolstered the false appearance of Russian interference in the 2016 election. This is important because it ties in to the next part that involves Julian Assange and Wikileaks.

On April 11th, 2019, the Julian Assange indictment was unsealed in the EDVA. From the indictment we discover it was under seal since March 6th, 2018:

(Link to pdf)

On Tuesday April 15th more investigative material was released. Again, note the dates: Grand Jury, *December of 2017* This means FBI investigation prior to….

The FBI investigation took place prior to December 2017, and it was coordinated through the Eastern District of Virginia (EDVA) where Dana Boente was U.S. Attorney at the time. The grand jury indictment was sealed from March of 2018 until after Mueller completed his investigationApril 2019.

Why the delay?

What was the DOJ waiting for?

Here’s where it gets interesting….

The FBI submission to the Grand Jury in December of 2017 was four months after Congressman Dana Rohrabacher talked to Julian Assange in August of 2017: “Assange told a U.S. congressman … he can prove the leaked Democratic Party documents … did not come from Russia.”

(August 2017, The Hill Via John Solomon) Julian Assange told a U.S. congressman on Tuesday he can prove the leaked Democratic Party documents he published during last year’s election did not come from Russia and promised additional helpful information about the leaks in the near future.

Rep. Dana Rohrabacher, a California Republican who is friendly to Russia and chairs an important House subcommittee on Eurasia policy, became the first American congressman to meet with Assange during a three-hour private gathering at the Ecuadorian Embassy in London, where the WikiLeaks founder has been holed up for years.

Rohrabacher recounted his conversation with Assange to The Hill.

“Our three-hour meeting covered a wide array of issues, including the WikiLeaks exposure of the DNC [Democratic National Committee] emails during last year’s presidential election,” Rohrabacher said, “Julian emphatically stated that the Russians were not involved in the hacking or disclosure of those emails.”

Pressed for more detail on the source of the documents, Rohrabacher said he had information to share privately with President Trump. (read more)

Knowing how much effort the Intelligence Branch put into the false Russia collusion-conspiracy narrative, it would make sense for the FBI to take keen interest after this August 2017 meeting between Rohrabacher and Assange, monitor all activity, and why the FBI would quickly gather specific evidence (related to Wikileaks and Bradley Manning) for a grand jury by December 2017.

Within three months of the EDVA grand jury, the DOJ generated an indictment and sealed it in March 2018.

The DOJ sat on the indictment while the Mueller/Weissmann probe was ongoing.

As soon as the Mueller/Weissmann probe ended, on April 11th, 2019, a planned and coordinated effort between the U.K. and U.S. was executed; Julian Assange was forcibly arrested and removed from the Ecuadorian embassy in London, and the EDVA indictment was unsealed (link).

As a person who has researched this fiasco; including the ridiculously false 2016 Russian hacking/interference narrative: “17 intelligence agencies”, Joint Analysis Report (JAR) needed for Obama’s anti-Russia narrative in December ’16; and then a month later the ridiculously political Intelligence Community Assessment (ICA) in January ’17; this timing against Assange is too coincidental.

It doesn’t take a deep researcher to see the aligned Deep State motive to control Julian Assange. The Weissmann/Mueller report was dependent on Russia cybercrimes for justification, and that narrative was contingent on the Russia DNC hack story which Julian Assange disputes.

  • This is critical. The Weissmann/Mueller report contains claims that Russia hacked the DNC servers as the central element to the Russia interference narrative in the U.S. election. This claim is directly disputed by WikiLeaks and Julian Assange, as outlined during the Dana Rohrabacher interview, and by Julian Assange on-the-record statements.

The predicate for Robert Mueller’s investigation was specifically due to Russian interference in the 2016 election.

The fulcrum for this Russia interference claim is the intelligence community assessment; and the only factual evidence claimed within the ICA is that Russia hacked the DNC servers; a claim only made possible by relying on forensic computer analysis from Crowdstrike, a DNC and FBI contractor.

The CIA holds a self-interest in upholding the Russian hacking claim; the FBI holds an interest in maintaining that claim; the U.S. media hold an interest in maintaining that claim. All of the foreign countries whose intelligence apparatus participated with Brennan and Strzok also have a self-interest in maintaining that Russia hacking and interference narrative.

Julian Assange is the only person with direct knowledge of how Wikileaks gained custody of the DNC emails; and Assange has claimed he has evidence it was not from a hack.

This “Russian hacking” claim was ultimately important to the CIA, FBI, DOJ, ODNI and U.K intelligence apparatus, it forms the corner of their justification. With that level of importance, well, right there is the obvious motive to shut Julian Assange down as soon as intelligence officials knew the Weissmann/Mueller report was going to be public.

…. and that’s exactly what they did. They threw a bag over Assange.

  • COLLAPSED OVERSIGHT – The modern system to ‘check’ the Executive Branch was the creation of the legislative “Gang of Eight,” a legislative oversight mechanism intended to provide a bridge of oversight between the authority of the intelligence community within the Executive Branch.

The Go8 construct was designed to allow the President authority to carry out intelligence operations and provide the most sensitive notifications to a select group within Congress.

The Go8 oversight is directed to the position, not the person, and consists of: (1) The Speaker of the House; (2) The Minority Leader of the House; (3) The Chair of the House Permanent Select Committee on Intelligence, HPSCI; (4) The Ranking Member (minority) of the HPSCI; (5) The Leader of the Senate; (6) The Minority Leader of the Senate; (7) The Chair of the Senate Select Committee on Intelligence, SSCI; and finally (8) the Vice-Chair of the SSCI.

Example: When the Chief Executive (the President) initiates an intelligence operation on behalf of the United States, the President triggers a “finding memo.” In essence, the instruction to the intel agency or agencies to authorize a covert operation. When that process takes place, the Go8 are the first people notified. Depending on the sensitivity of the operation, sometimes the G08 are notified immediately after the operation is conducted. The notification can be a phone call or an in-person briefing.

Because of the sensitivity of their intelligence information, the Gang of Eight hold security clearances that permit them to receive and review all intelligence operations. The intelligence community are also responsible for briefing the Go8 with the same information they use to brief the President.

~ 2021 Gang of Eight ~

The Go8 design is intended to put intelligence oversight upon both political parties in Congress; it is designed that way by informing the minority leaders of both the House and Senate as well as the ranking minority members of the SSCI and HPSCI. Under the concept, the President cannot conduct an intelligence operation; and the intelligence community cannot carry out intelligence gathering operations without the majority and minority parties knowing about it.

The modern design of this oversight system was done to keep rogue and/or corrupt intelligence operations from happening. However, as we shared in the preview to this entire discussion, the process was usurped during the Obama era. {GO DEEP}

Former FBI Director James Comey openly admitted to Congress on March 20, 2017, that the FBI, FBI Counterintelligence Division, DOJ and DOJ-National Security Division, together with the Office of the Director of National Intelligence (ODNI) and the CIA, had been conducting independent investigations of Donald Trump for over a year without informing the Go8. Comey justified the lack of informing Go8 oversight by saying, “because of the sensitivity of the matter.”

Stupidly, Congress never pressed James Comey on that issue. The arrogance was astounding, and the acceptance by Congress was infuriating. However, that specific example highlighted just how politically corrupt the system had become. In essence, Team Obama usurped the entire design of congressional oversight…. and Congress just brushed it off.

Keep in mind, Comey did not say the White House was unaware; in fact he said exactly the opposite, he said, “The White House was informed through the National Security Council,” (the NSC). The implication, the very direct and specific implication; the unavoidable implication and James Comey admission that everyone just brushed aside, was that President Obama’s National Security Advisor, Susan Rice, was totally informed of the intelligence operation(s) against Donald Trump. After all, the NSC reports to the National Security Advisor.

Does the January 20, 2017, Susan Rice memo look different now?

Again, no one saw the immediate issue. What Comey just described on that March day in 2017 was the total usurpation of the entire reason the Gang of Eight exists; to eliminate the potential for political weaponization of the Intelligence Community by the executive branch. The G08 notifications to the majority and minority are specifically designed to make sure what James Comey admitted to doing was never supposed to happen.

Team Obama carried out a political operation using the intelligence community and the checks-and-balances in the system were intentionally usurped. This is an indisputable fact.

Worse still, the entire legislative branch of Congress, which specifically includes the Republicans that now controlled the House and Senate, did nothing. They just ignored what was admitted. The usurpation was willfully ignored.  The mechanism of the G08 was bypassed without a twitch of condemnation or investigation…. because the common enemy was Donald Trump.

This example highlights the collapse of the system. Obama, the executive branch, collapsed the system by usurping the process; in essence the process became the bigger issue and the lack of immediate legislative branch reaction became evidence of open acceptance. The outcomes of the usurpation played out over the next four years, Donald J. Trump was kneecapped and lost his presidency because of it. However, the bigger issue of the collapse still exists.

The downstream consequence of the Legislative Branch accepting the Executive Branch usurpation meant both intelligence committees were compromised. Additionally, the leadership of both the House and Senate were complicit. Think about this carefully. The Legislative Branch allowance of the intelligence usurpation meant the Legislative Branch was now subservient to the Intelligence Branch.

That’s where we are.

Right now.

That’s where we are.

Term-3 Obama is now back in the White House with Joe Biden.

Term-1 and Term-2 Obama usurped the ‘check and balance‘ within the system and weaponized the intelligence apparatus.

During Trump’s term that weaponization was covered up by a compliant congress, and not a single member of the oversight called it out.

Now, Term-3 Obama steps back in to continue the cover up and continue the weaponization.

Hopefully, you can now see the scale of the problem that surrounds us with specific citation for what has taken place. What I just explained to you above is not conspiracy theory, it is admitted fact that anyone can look upon. Yet….

Have you seen this mentioned anywhere? Have you seen this called out by anyone in Congress? Have you seen anyone in media (ally or adversary) call this out? Have you seen any member of the Judicial Branch stand up and say wait, what is taking place is not okay? Have you seen a single candidate for elected office point this out? Have you seen anyone advising a candidate point this out?

This is our current status. It is not deniable. The truth exists regardless of our comfort.

Not a single person in power will say openly what has taken place. They are scared of the Fourth Branch. The evidence of what has taken place is right there in front of our face. The words, actions and activities of those who participated in this process are not deniable.

There are only two members of the Gang of Eight who have existed in place from January 2007 (the real beginning of Obama’s term, two years before he took office when the Congress flipped). Only two members of the G08 have been consistently in place from January of 2007 to right now, today.

All the others came and went, but two members of the Gang of Eight have been part of that failed and collapsed oversight throughout the past 15 years, Nancy Pelosi and Mitch McConnell.

TECHNOLOGY

On a global scale – the modern intelligence gathering networks are now dependent on data collection to execute their intelligence missions. In the digital age nations have been executing various methods to gather that data. Digital surveillance has replaced other methods of interception. Those surveillance efforts have resulted in a coalescing of regional data networks based on historic multi-national relationships.

We have a recent frame of reference for the “U.S. data collection network” within the NSA. Through the allied process the Five Eyes nations all rely on the NSA surveillance database (U.K, Australia, Canada, New Zealand and U.S.) The NSA database provides the digital baseline for intelligence operations in defense of our allies. The portals into the NSA database are essentially an assembly of allies in like-minded ideological connection to the United States.

Unfortunately, there have been some revelations about the NSA database being used to monitor our allies, like in the example of Germany and surveillance on Angela Merkel’s phone. As long as “the good guys” are operating honorably, allies of the United States can feel confident about having protection from the NSA surveillance of global digital data. We warn our friends if we detect something dangerous etc.

The U.S. has nodes on communication pipelines to intercept and extract data. We have also launched hundreds, perhaps thousands, of satellites to conduct surveillance and gather up data. All of this data is fed into the NSA database where it is monitored (presumably) as a national security mechanism, and in defense of our allies.

However, what about data collection or data networks that are outside the NSA database? What do our enemies do? The NSA database is just one intelligence operation of digital surveillance amid the entire world, and we do not allow access by adversaries we are monitoring. So what do they do? What do our allies do who might not trust the United States due to past inconsistencies, ie. the Middle East?

The answers to those questions highlight other data collection networks. So a brief review of the major players is needed.

CHINA

China operates their own database. They, like the NSA, scoop up data for their system. Like us, China launches satellites and deploys other electronic data collection methods to download into their database. This is why the issues of electronic devices manufactured in China becomes problematic. Part of the Chinese data collection system involves the use of spyware, hacking and extraction.

Issues with Chinese communication company Huawei take on an added dimension when you consider the goal of the Chinese government to conduct surveillance and assemble a network of data to compete with the United States via the NSA. Other Chinese methods of surveillance and data-collection are less subversive, as in the examples of TicTok and WeChat. These are Chinese social media companies that are scraping data just like the NSA scrapes data from Facebook, Twitter and other Silicon Valley tech companies. [ Remember, the Intelligence Branch is a public-private partnership. ]

RUSSIA

It is very likely that Russia operates their own database. We know Russia launches satellites, just like China and the USA, for the same purposes. Russia is also very proficient at hacking into other databases and extracting information to store and utilize in their own network. The difference between the U.S., China and Russia is likely that Russia spends more time on the hacking aspect because they do not generate actual technology systems as rapidly as the U.S. and China.

The most recent database creation is an outcome of an ally having to take action because they cannot rely on the ideology of the United States remaining consistent, as the administrations ping-pong based on ideology.

SAUDI ARABIA

Yes, in 2016 we discovered that Saudi Arabia was now operating their own intelligence data-gathering operation. It would make sense, given the nature of the Middle East and the constant fluctuations in political support from the United States. It is a lesson the allied Arab community and Gulf Cooperation Council learned quickly when President Obama went to Cairo in 2009 and launched the Islamist Spring (Arab Spring) upon them.

I have no doubt the creation of the Saudi intelligence network was specifically because the Obama administration started supporting radical Islamists within the Muslim Brotherhood, and threw fuel on the fires of extremism all over the Arab world.

Think about it., What would you do if you were Saudi Arabia, Egypt, Bahrain, Kuwait, the UAE, Jordan, Oman or Yemen and you knew the United States could just trigger an internal uprising of al-Qaeda, ISIS and the political arm of the Muslim Brotherhood to seek your destruction?

Without a doubt, those urgent lessons from 2009, 2010, 2011 triggered the formation of the Arab Intelligence Network as a network to defend itself with consistency. They assembled the network and activated it in 2017 as pictured above.

Israel

Along a similar outlook to the Arab network, no doubt Israel operates an independent data collection system as a method of protecting itself from ever-changing U.S. politics amid a region that is extremely hostile to its very existence. Like the others, Israel launches proprietary satellites, and we can be sure they use covert methods to gather electronic data just like the U.S. and China.

As we have recently seen in the Pegasus story, Israel creates spyware programs that are able to track and monitor cell phone communications of targets. The spyware would not work unless Israel had access to some network where the phone meta-data was actually stored. So yeah, it makes sense for Israel to operate an independent intelligence database.

Summary:

As we understand the United States Intelligence Branch of government as the superseding entity that controls the internal politics of our nation, we also must consider that multiple nations have the same issue. There are major intelligence networks around the world beside the NSA “Five-Eyes” database. China, Russia, Saudi Arabia and Israel all operate proprietary databases deploying the same tools and techniques for assembly.

The geopolitical conflict that has always existed has now shifted into a digital battle-space. The Intelligence Agencies from these regions are now operating as the backbone of the government that uses them, and has become dependent on them. [<- Reread that].

Once you accept the digital-era intelligence apparatus of China, Russia, Saudi-Arabia, The United States and Israel, are now the primary national security mechanisms for stabilization of government; then you accept the importance of those intelligence operations.

Once you understand how foundational those modern intelligence operations have become for the stability and continuity of those governments…… then you begin to understand just how the United States intelligence community became more important than the government that created it.

Public Private Partnership – The modern Fourth Branch of Government is only possible because of a Public-Private partnership with the intelligence apparatus. You do not have to take my word for it, the partnership is so brazen they have made public admissions.

The biggest names in Big Tech announced in June their partnership with the Five Eyes intelligence network, ultimately controlled by the NSA, to: (1) monitor all activity in their platforms; (2) identify extremist content; (3) look for expressions of Domestic Violent Extremism (DVE); and then, (4) put the content details into a database where the Five Eyes intelligence agencies (U.K., U.S., Australia, Canada, New Zealand) can access it.

Facebook, Twitter, Google and Microsoft are all partnering with the intelligence apparatus. It might be difficult to fathom how openly they admit this, but they do. Look at this sentence in the press release (emphasis mine):

[…] “The Group will use lists from intelligence-sharing group Five Eyes adding URLs and PDFs from more groups, including the Proud Boys, the Three Percenters and neo-Nazis.”

Think about that sentence structure very carefully. They are “adding to” the preexisting list…. admitting the group (aka Big Tech) already have access to the the intelligence-sharing database… and also admitting there is a preexisting list created by the Five Eyes consortium.

Obviously, who and what is defined as “extremist content” will be determined by the Big Tech insiders themselves. This provides a gateway, another plausible deniability aspect, to cover the Intelligence Branch from any oversight.

When the Intelligence Branch within government wants to conduct surveillance and monitor American citizens, they run up against problems due to the Constitution of the United States. They get around those legal limitations by sub-contracting the intelligence gathering, the actual data-mining, and allowing outside parties (contractors) to have access to the central database.

The government cannot conduct electronic searches (4th amendment issue) without a warrant; however, private individuals can search and report back as long as they have access. What is being admitted is exactly that preexisting partnership. The difference is that Big Tech will flag the content from within their platforms, and now a secondary database filled with the extracted information will be provided openly for the Intelligence Branch to exploit.

The volume of metadata captured by the NSA has always been a problem because of the filters needed to make the targeting useful. There is a lot of noise in collecting all data that makes the parts you really want to identify more difficult to capture. This new admission puts a new massive filtration system in the metadata that circumvents any privacy protections for individuals.

Previously, the Intelligence Branch worked around the constitutional and unlawful search issue by using resources that were not in the United States. A domestic U.S. agency, working on behalf of the U.S. government, cannot listen on your calls without a warrant. However, if the U.S. agency sub-contracts to say a Canadian group, or foreign ally, the privacy invasion is no longer legally restricted by U.S. law.

What was announced in June 2021 is an alarming admission of a prior relationship along with open intent to define their domestic political opposition as extremists.

July 26 (Reuters) – A counterterrorism organization formed by some of the biggest U.S. tech companies including Facebook (FB.O) and Microsoft (MSFT.O) is significantly expanding the types of extremist content shared between firms in a key database, aiming to crack down on material from white supremacists and far-right militias, the group told Reuters.

Until now, the Global Internet Forum to Counter Terrorism’s (GIFCT) database has focused on videos and images from terrorist groups on a United Nations list and so has largely consisted of content from Islamist extremist organizations such as Islamic State, al Qaeda and the Taliban.

Over the next few months, the group will add attacker manifestos – often shared by sympathizers after white supremacist violence – and other publications and links flagged by U.N. initiative Tech Against Terrorism. It will use lists from intelligence-sharing group Five Eyes, adding URLs and PDFs from more groups, including the Proud Boys, the Three Percenters and neo-Nazis.

The firms, which include Twitter (TWTR.N) and Alphabet Inc’s (GOOGL.O) YouTube, share “hashes,” unique numerical representations of original pieces of content that have been removed from their services. Other platforms use these to identify the same content on their own sites in order to review or remove it. (read more)

The influence of the Intelligence Branch now reaches into our lives, our personal lives. In the decades before 9/11/01 the intelligence apparatus intersected with government, influenced government, and undoubtedly controlled many institutions with it. The legislative oversight function was weak and growing weaker, but it still existed and could have been used to keep the IC in check. However, after the events of 9/11/01, the short-sighted legislative reactions opened the door to allow the surveillance state to weaponize.

After the Patriot Act was triggered, not coincidentally only six weeks after 9/11, a slow and dangerous fuse was lit that ends with the intelligence apparatus being granted a massive amount of power. The problem with assembled power is always what happens when a Machiavellian network takes control over that power and begins the process to weaponize the tools for their own malicious benefit. That is exactly what the installation of Barack Obama was all about.

The Obama network took pre-assembled intelligence weapons we should never have allowed to be created, and turned those weapons into tools for his radical and fundamental change. The target was the essential fabric of our nation. Ultimately, this corrupt political process gave power to create the Fourth Branch of Government, the Intelligence Branch. From that perspective the fundamental change was successful.

WHAT NOW? 

There is a way to stop and deconstruct the Intelligence Branch, but it requires some outside-the-box thinking and reliance on the Constitution as a tool to radically change one element within government. In the interim, we must remain focused on the three tiers that we need for success.

  • Tier One is “tactical civics” at a local level. Engaged and active citizen participation at the community, city, town and hamlet level of society. This is what might be described as grassroots level, school board level; city council level; county commissioner level.

  • Tier Two is “extreme federalism” at a state level. Engaged and active citizen participation through your State House and State Senate representative. This is state level assembly and action demands upon the State House, State Senate and State Governor.

  • Tier Three the challenge of “federal offices” on a national level {Go Deep}.  This is the part where we need President Donald Trump, and his power to confront the issues comes directly from us.

I am confident that ultimately “We The People” will win.  How we can execute the solution is more challenging; in the interim, tactical civics and extreme federalism are doable right now, in this next 2024 election cycle.

It sucks that a UniParty congress extended FISA-702.  However, even if the hail-Mary pass on Monday fails, FISA was still extended for only two-years.

Congressmen Are "Terrified Of The Intel Agencies"; Tucker Carlson Warns They'll Frame Them With "Kiddie Porn"

  As we have documented many times on this blog, the takeover of America by the intel agencies is almost over. The methods are simple, blackmail and bribery. The purpose obvious, immediate profit and power.

  It is a complex web of deception from political "lobbyist" to pure blackmail, "Epstein" style, with pedo-islands, wired mansions in New York and trafficking of young children. The sky, or rather the depth of your wallet being the limit. 

  At the core of the deception is of course the CIA but more fundamentally Israel and the Jewish banking interests which manipulate the whole Western hemisphere since the Westphalia "peace" (Takeover in fact!) of 1648. 

  This is what is truly at stake in the confrontation between East and West. To believe that Western powers (Not the countries but the banking interests which truly control the system!) will relinquish power to China without a fight is utterly naive.   

Congressmen Are "Terrified Of The Intel Agencies"; Tucker Carlson Warns They'll Frame Them With "Kiddie Porn"

Joe Rogan and Tucker Carlson sat down for a wide-ranging three-hours-plus discussion last week, touching on everything from UFOs, spirituality, and religion; from artificial intelligence costs and benefits to questioning 'science' consensus; and from government secrecy and lying to the threat to democracy driven by our domestic intelligence agencies.

They begin by discussing a recently leaked government project named "Project Aqua" which involves advanced aerospace vehicles and their interaction with humans, leading to medical injuries and even deaths.

"Here's what we know is that US servicemen have died as a result of contact with or being in the proximity of these vehicles and we know that because there are a lot of suits working their way through the VA system."

The conversation turns specifically to the nature of UFOs, suggesting they could be more than just physical or technological phenomena, potentially tied to spiritual or supernatural origins.

On supernatural explanations for UFOs:

"It's pretty clear to me that they're spiritual entities whatever that means are Supernatural and which is to say Supernaturals means above the natural above the observable uh nature."

The troublesome twosome highlighted how certain revelations or events can lead to a deeper questioning of what is commonly accepted as truth, fostering a mindset of skepticism and curiosity.

On questioning assumptions:

"I began a process still ongoing of reassessing a lot of other things like okay well if that was not true what else is not true and what else that they told me was a conspiracy theory might actually have some basis in fact."

Rogan reiterates his long-held fear of the potential for artificial intelligence to evolve beyond human control, transforming into a new form of life that could dramatically alter our understanding and existence.

On artificial intelligence and humanity's future:

"Digital Life it's going to give birth to a new life form and I think we're real close to that I think we're way closer than that to that than most people would ever want to admit."

Carlson then opens up on his views about the current state of politics and society, particularly criticizing the dishonesty and manipulation in governmental and media structures.

The perennial topic of power corruption comes up next, with the two men comparing the intoxication of leadership to the historical behaviors of cult leaders and tyrants.

On power and control:

"It's very intoxicating and it's common in that it's always existed throughout human history. It's a thing that people do when they get power—they abuse the fuck out of it."

On ideological indoctrination:

"Woke is clearly a cult; it's a mind virus... it's very similar to all kinds of religions... everybody has to believe very specific things and you can't differ from the doctrine."

The pair elaborate further on the influence of ideologies that suppress dissenting views and the impact of governmental lies on public trust, emphasizing the importance of honesty in communication, slamming the government's tendency to prioritize power over transparency and the well-being of its citizens.

On the facade of democracy:

"When they stand up and pass a $60 billion funding bill for Ukraine when 70% of the population doesn't want it... and they call it a democracy, that will drive you insane because it's just too dishonest."

On personal and governmental honesty:

"Maybe just assess everything that way - is someone lying? I don't care what your justification for it is... You can't participate in lying... try to tell the truth all the time."

"You can't lie. You can't lie about anything, just don't lie about anything. Try to tell the truth all the time," he says.

"If you just stick with that, you get pretty quickly back to reason and order, don't you?"

Joe Rogan contunues by pointing out the themes of control and misinformation, particularly in the context of media, that are growuing more and more powerful. He points out the shift in what is considered mainstream media, highlighting the growing significance of platforms like Twitter and YouTube over traditional news outlets. Rogan stresses the increasing visibility of lies and the public's growing ability to discern truth from misinformation due to the accessibility of alternative information sources online.

On the problem with mainstream media:

"Mainstream media used to be CNN; it's not really anymore. Mainstream media is what in terms of the volume consumed, more people are consuming things on X [Twitter] than there are on anything else."

The former Fox News host exclaims his clear disdain for the manipulation and deceit he perceives at the highest levels of power.

"This is not self-government. You don't run this country, we do. Shut up and obey," says Carlson regarding what the reality of our government really is, adding that "what makes it particularly galling and hard to live with is when you call that system a democracy."

Rogan and Carlson also touch upon the effects of technology and social media on personal interactions and societal norms. They discuss the negative impacts of constant connectivity, lamenting the loss of meaningful face-to-face interactions.

"When people lie and when people bullshit and gaslight, it's more offensive now than it's ever been before," Rogan points out.

"The lies aren't sophisticated. It's something incredibly insulting and demeaning to tell me a lie when I know it's a lie."

And then the discussion gets ominously dark as the pair reflect on the re-authorization of the 'spying on Americans' bill (we note that the two gentlemen met before the bill was re-authorized).

'Kiddie Porn' blackmail fear...

Stunningly, Carlson tells Rogan that congressmen were "terrified" that intelligence agencies will frame them with "kiddie porn" if they openly opposed the "warrantless spying" bill.

Specifically, he says US lawmakers "told" him that they are "worried" about being punished by intel agencies if they oppose reauthorizing Section 702 of the Foreign Intelligence Surveillance Act (FISA).

"People don't say that because they're worried about being punished. They’re worried about someone putting kiddie porn on their computer. Members of Congress are terrified of the intel agencies. I'm not guessing at that. They've told me that — including people on the intel committee, including people who run the intel committee," Carlson said.

"The people whose job it is to oversee and keep in line these enormous, secretive agencies whose budgets we can't even know - their 'black budgets'," Carlson continued, raising his hands into air-quotes.

That it is "tyranny", not democracy, for "unelected people who are not accountable to anyone making the biggest decisions", Carlson raged, to force congressmen to support reauthorizing "warrantless spying" of American citizens because "they're threatened."

"They're the parents, the agencies are the children. They're afraid of the agencies. That's not compatible with democracy."

“It’s playing out in front of everyone, and no one cares and no one does anything about it,” Carlson said.

"I think the reason is because they’re threatened. And if you look at the committee chairman who allowed this shit to happen year after year, they’re all - and I don’t know, people say, ‘Oh, they’re compromised or being blackmailed,’ whatever. I don’t have evidence of that. But I know them. And they have all the things to hide. I know that for a fact."

“It’s not a stretch of imagination to imagine that, you know, some committee chairman who’s allowing warrantless spying on Americans to continue, or whatever abuse they’re allowing... It’s not impossible to imagine that some guy with a drinking problem or a weird sex life — and that’s very common, very common up there — that’s why they’re doing it. Because they don’t want to be exposed,” Carlson added.

“I said to somebody, a very powerful person, the other day, in a conversation in my kitchen, an elected official - holds a really senior position...

But I was like, ‘All these people are controlled. They’ve all got weird s*x lives, and all these things they’re hiding, and they’re being blackmailed by the intel agencies.’

And he said, and I’m quoting, ‘I know.’ I was like, okay, so at this point, we’re just sort of admitting that’s real? Like, why do we allow that to continue?”

Finally, and in a more calming conclusion, Carlson reminisces about his unconventional childhood, emphasizing the value of communal meals and genuine conversations, which he contrasts starkly with the superficial interactions encouraged by social media platforms. Rogan agrees, but fears we have gone to far to ever be able to come back.

On the value of personal interaction:

"When you get people in a club and you take their phones away and just have them just be actual human beings and not be filming everything, just being completely trapped with this idea of capturing something and then putting it online, then you get to have a human experience."

The dialogue shifts to the topic of creativity and its survival in modern America.

On the state of creativity:

"Creativity, art has been completely destroyed and eliminated in the United States. There’s like, you can’t be creative if you’re not honest. It’s that simple, and we can’t be honest so there’s no creativity."

Carlson expresses a belief that true creativity cannot exist without honesty, asserting that a lack of genuine expression has led to a decline in artistic and cultural development, except in fields like comedy and music which still manage to thrive amidst societal constraints.

On the power of rhythm in music:

"I love the fact that they had two drummers... the architecture is rhythm and it’s the universal sound that every culture appreciates because it reflects something that’s pre-existing that’s in you."

On societal change and comedy:

"Comedy’s never been better. Amazing time. It came close, oh yeah, the walls got breached... It felt like, oh wow, you know, people can’t tell jokes anymore. We kept doing it."

Both hosts discuss the vitality of art forms that manage to operate outside the mainstream narratives, suggesting that these are crucial for maintaining a vibrant cultural landscape.

Overall, the discussion encapsulates a broad critique of contemporary societal issues, from government secrecy and the erosion of personal freedoms to the challenges facing creative expression and public discourse in the digital age.

Both Carlson and Rogan advocate for a more open, honest, and engaged society that values personal interaction and intellectual freedom above conformity and control.

"I'm going to go crazy because I just can't deal with the lying," Carlson concludes.

China Economic Growth Shocks Wall Street! US Dollar is in SERIOUS Trouble (Video - 24mn)

  Without minimizing the long term real estate problem of China which still has got  to be fixed, the financial problems of the US are much bigger still and growing fast. At some stage in the not too distant future the problem will become existential. Then what?

  A very interesting discussion which touches on the BRICS and gold market.


 

House Passes Ukraine Funding Bill On Hitler's Birthday

  Maybe just a coincidence. Maybe not. In the end it doesn't matter.

  What matters is that Congress has voted for war in Ukraine, Israel and Taiwan, Starting the process of confiscation of Russian assets which will endanger the status of the US dollar and renewed the foreign spying act which is as anti-democratic as can be. 

  But as if all this was not enough yet, it pales in comparison to what Tucker Carlson confirmed: That members of Congress are actually being blackmailed by the "agencies" which are in fact the core of what we call the deep state. 

 The days of the US as a super state are numbered. The empire will now start costing more than it brings in and add to the deficit until it all crumbles in a huge pile of debt. The timing is unpredictable but the outcome unavoidable.

A man poses in front of flags representing Ukrainian Neo-Nazi groups, including the aptly-named Misanthropic Division.
A man poses in front of flags representing Ukrainian Neo-Nazi groups, including the aptly-named Misanthropic Division. 

Congress Passes $95 Billion America Last Package

As Zero Hedge reported today, Congress passed a package of bills to fund the Ukraine, Israel, and Taiwan while not providing any additional money for U.S. border security. That Congress passed Ukraine funding on Hitler's birthday probably won't go unnoticed by Ukrainian Neo-Nazis, who have been among the most enthusiastic opponents of Russia since the Donbass conflict that preceded the current war started in 2014. 

One of the funding packages also allows for the confiscation of Russian assets in the U.S. That got me wondering when the last time the U.S. confiscated a foreign countries assets was (as opposed to freezing them), so I asked ChatGPT: 

When is the last time the U.S. confiscating another country's assets (as opposed to freezing them)? The U.S. froze Iranian assets after Iran invaded the U.S. embassy and took embassy staff hostage, but if I recall correctly, those assets were eventually return to Iran.

Its response: 

The distinction between freezing and outright confiscation of assets is significant in international law and diplomacy. When it comes to the United States, cases of asset freezing are more common than outright confiscation, particularly concerning diplomatic or geopolitical disputes.

In the case you mentioned, the U.S. did indeed freeze Iranian assets following the 1979 hostage crisis, where Iranian militants seized the U.S. Embassy in Tehran and took 52 American hostages. The assets were frozen to apply pressure on Iran to resolve the crisis. These assets, however, were not confiscated permanently; they were indeed returned as part of the Algiers Accords in 1981, which was a settlement that facilitated the release of the hostages and resolved various claims between the U.S. and Iran.

Regarding actual confiscation of another country's assets, historical instances where the U.S. might have taken such a step are less frequent and typically tied to periods of open warfare or similar extreme circumstances. One notable example is during World War II, when the U.S. confiscated German and Japanese assets. This was done under the context of the Trading with the Enemy Act, where assets owned by countries at war with the U.S. were seized. These assets were used to fund war efforts and were not returned post-war, representing a rare instance of outright asset confiscation rather than mere freezing.

Is It Worth Risking Dollar Supremacy Over The Ukraine War? 

One of the reasons the U.S. dollar is the world's reserve currency is because, historically, foreign assets have been pretty safe here (unless your country is actually at war with us, as Germany and Japan were in World War II). We've already raised the inflation risk of foreign nations holding assets here with our out-of-control deficit spending; if we add the risk of outright confiscation, presumably China and other countries with significant U.S. dollar assets will want higher interest rates to compensate them for that risk. At a time when we have unprecedented levels of debt, this seems inauspicious. 

Confiscating Russia's assets also eliminates obvious leverage we could have used to end the Ukraine War: offering to unfreeze their assets as part of a broader settlement (which might have included paying the Ukraine for land annexed by Russia, as we did with Mexico after the Mexican-American War). Now U.S. dollar supremacy may eventually end up being another casualty of the Ukraine War, which has led to so much unnecessary human suffering since Western leaders sabotaged a Russia-Ukraine peace deal early on.

Saturday, April 20, 2024

Why Is Gold Rising Now, Where Is It Headed Tomorrow?

 

  This article is just food for thoughts. There are plenty of reasons for gold to go up as explained below but these reasons were already present years ago. In a world where there is no real market left, i.e. everything is manipulated, clearly someone wants gold to be revalued now All is not going well behind the curtain. We are not there yet, but a dollar crisis is now just over the horizon!

Authored by Matthew Piepenburg via VonGreyerz.gold,

Needless to say, we at VON GREYERZ spend a good deal of time thinking about, well… gold.

The Complex, the Simple, the Math and the History

Year after year, and week after week, there is always a new way to examine gold price moves and decipher the obvious and not-so obvious forces which flow behind, ahead, above and below its monetary and, yes, metallic, move through time.

Today, deep into the early decades of the 21st century, and well over 100 years since the not-so immaculate conception of the Fed in the early 20th century, we could (and have) spent pages and paragraphs on key turning points in the rigged to fail history of paper vs. metallic money.

At times, this effort can and has seemed intense and even complex, with all kinds of historical facts, mathematical comparisons and “big events.”

The turning points of gold’s relationship with fiat currencies, and its role in preserving wealth, for example, are known to an admitted minority—as only about 0.5% of global financial allocations include physical gold.

Gold’s Language

Yet the need, role and direction of gold is fairly blunt, at least for those with eyes to see and ears to hear.

History, for example, has some clear things to say about paper money.

And so does gold.

From the Bretton Woods promises of 1944 and Nixon’s open and subsequent welch on the same in 1971 to the 2001 outsourcing of the American dream to China under Clinton (and the WTO) or the recent weaponization of USD in Q1 of 2022, gold has been watching, acting and speaking to those who understand her language.

The Big Question: Why Is Gold Rising Now?

And this year, with gold reaching all-time-highs, piercing resistance lines and racing toward what the Wall Street fancy lads call “price discovery,” we are understandably getting a lot of interview requests, phone calls and even emails from friends otherwise silent for years and now suddenly asking the same thing:

“Why is gold rising now?”

The Wall Street side of my odd brain, like it or not, gets all excited by such questions.

Never at a loss for words, my pen and mouth rapidly seek to wax poetic on the many answers to why gold matters forever in general, and why it is rising in particular now.

Toward that end, the list of the fancy and not-so-fancy answers to this question in recent years, articles and interviews could look as simple (or as complex) as the following list of 7 key factors:

The Malignant Seven

  1. Every debt crisis leads to a currency crisis—hence: Good for gold.

  2. All paper currencies, as Voltaire quipped, eventually revert to their paper value of zero, and all debt-soaked nations, as von Mises, David Hume and even Ernest Hemingway warned, debase their currencies to retain power—hence: Good for gold.

  3. Rising rates (and fiscal dominance) used to “fight inflation” are too expensive for even Uncle Sam’s wallet, thus he, like all debt-soaked nations, will debase his currency to pay his own IOUs—hence: Good for gold.

  4. Global central banks are dumping unloved and untrusted USTs and stacking gold at undeniably important levels—hence: Good for gold.

  5. After generations of importing US inflation and being the dog wagged by the tail of the USD, the BRICS+ nations, prompted by a weaponized Greenback, are now turning their tails slowly but surely away from the USD dog—hence: Good for gold.

  6. The Gulf Cooperation Council oil powers, once seduced (circa 1973) into a Petrodollar arrangement by a high-yielding UST and globally revered USD, are now openly selling oil outside of the 2024 version of that far less-yielding UST and far less-trusted USD—hence: Good for gold.

  7. That legalized price-fixing sham otherwise known as the COMEX employed in 1974 to keep a permanent boot to the neck of the gold price, is running out of the physical gold needed to, well…price fix gold—hence: Good for gold.

In short, each of these themes–from sovereign (and unprecedented) debt levels, historical debt lessons, the secrets of the rate markets, global central banks dumping USTs or the implications of changing oil markets to the OTC derivatives scam masquerading as capitalism–all DO explain why gold is rising now.

This list, of course, may be simple, but the forces, indicators, lingo, math and trends within each theme can be admittedly complex, as each theme is in fact worthy of its own text book rather than bullet point.

Indeed, currencies, markets, history, bonds, geopolitics, energy moves and derivative desks are complicated little creatures.

But despite all this complexity, study and deliberation, if you really want to address the question of “why is gold rising now?”—the answer is almost too simple for those of us who wish to appear, well… “complex.”

The Too-Simple Answer to the Big Question

In other words, the simple answer—the answer that cuts through all the fog, lingo and math of “sophisticated” financial markets–boils down to this:

GOLD IS NOT RISING AT ALL. THE USD IS JUST GETTING WEAKER AND WEAKER.

At VON GREYERZ, we never measure gold’s value in dollars, yen, euros or any other fiat currency. We measure gold in ounces and grams.

Why?

Because history and math (as well as all the current and insane financial, geopolitical, and social events staring us straight in the eyes today) teach us not to trust a currency backed by man (or the “full faith in trust” of the UST or a Fed’s mouse-clicked currency), but instead to seek value in monetary metals created by nature.

Fake Money & Empty Promises

Once a currency loses a gold backing (nod to Nixon), it is nothing more than the empty promise of a government now free to print and spend without a chaperone to buy votes, market bubbles and even a Nobel Prize (i.e., what Hemingway called “temporary prosperity”) but then hand the bill and inflation to future generations (what Hemingway then called “permanent ruin”).

Gold Does Nothing

So yes, gold, as Buffet and others have quipped, “does nothing.” It just sits there and stares at you.

But while this yield-less pet rock sits there “doing nothing,” the currency by which you measure your wealth is in fact quite busy melting like an ice cube–one day, month and year at a time.

Here’s to Doing Nothing: Price vs. Value

Sometimes a picture can say a thousand words and make the most complex economic topics or themes, like “price vs. value” or “store of value,” make immediate sense.

Think, for example, about a 1-ounce bar of gold just doing nothing in say… 1920.

Well, if you had 250 of those do-nothing ounces in a shoe box in 1920, which was “priced” then at around $20 USD per ounce, you could afford the average US home, then priced at $5000.

Today, however, the average price of a US home is $500,000.

So, if your grandfather left you a shoebox with 5000 crumpled Dollars inside, it would not even pay for the landscaping needed for that same house today.

But if your grandfather had instead handed you a shoebox with those same 250 singe-ounce bars of gold (today “priced” at 2300/ounce), you could buy the same average home and the landscaper too—with a nice tip for the latter.

So, do you still think those little gold bars just stared back at you, doing nothing?

After all, the shoe box with the 5000 USDs inside was very busy doing one thing very well, namely: Losing its value like snow melting off a spring mountainside…

So, which shoebox would you want to measure your wealth?

The one measured in fiat dollars actively losing value? Or the one measured in gold ounces “doing nothing” but retaining its value?

Sometimes the complex really is that simple.

The Next Big Question: Where’s Gold Headed Tomorrow?

The pathway to answering such a question is just as clear as the one we just traveled.

The aforementioned “Malignant Seven” are each factors which we believe will continue to push the USD down and hence gold higher, because, and to repeat: It’s not that gold will get stronger, it’s just that all fiat currencies in general, and the weaponized, distrusted and over-indebted USD in particular, get weaker.

But for those still understandably and realistically convinced that despite its myriad and almost endless flaws, the US (and its Dollar) is still, for now at least, the best horse in the glue factory, a case can be made that measured relative to other currencies (i.e., the DXY), that the USD is supreme, and that when and as financial markets weaken, investors will flock to it like a lifeboat in a tempest.

Milkshake Theory?

Such a credible view is held by very smart folks like Brent Johnson, with whom I have discussed the USD at length.

Brent’s “milkshake theory” intelligently argues that powerful demand forces from the euro dollar, SWIFT and derivative markets, for example, create a massive, “straw-like” sucking sound for the “milky” USD, which demand will keep it strong, and send it stronger, in the seasons ahead.

He may in fact be right.

But I think differently.

Why?

Two primary reasons stick out.

No “Straw” for the UST

First, despite the undeniably powerful demand forces at play for the USD, demand for USTs is, and has been, tanking around the world since 2014.  That is, foreigners don’t trust the US IOUs as much as they did before America became a debt trap.

Ever since foreign (central bank) interest in USTs began net-selling in 2014, and gold interest began net-buying in 2010, the only buyer of last resort for US public debt has been the US Fed, and the only tool the US Fed has to purchase that debt is a mouse-clicker (“money printer”) at the Eccles Building.

Unfortunately, creating money out of thin air is not a sustainable  policy but a near-term fantasy. More importantly, such a policy is inherently, and by definition: Inflationary.

My US Realpolitik Theory…

The second, and perhaps more important reason the USD’s declining future is fairly easy to see (or argue), is this:

EVEN UNCLE SAM WANTS AND NEEDS A WEAKER DOLLAR.

Why?

Because the only way out of the biggest debt hole the US has ever seen is to inflate its way out of it by debasing the currency to “save” an otherwise rotten system.

We’ve argued this for years, and the facts supporting this historically-repeated pattern (and view) haven’t changed; they’ve just grown worse.

That is why it was easy to foresee that inflation would not be “transitory” despite all the useless commentary (and Fed-speak) arguing to the contrary.

That is also why it was easy to see that Powell’s “war on inflation” was a political ruse—an optics play.

Powell’s real aim was (and remains) inflationary via negative real rates (i.e., inflation higher than 10Y bond yields).

Thus, even while pursuing his “higher-for-longer” and anti-inflationary rate hikes, actual inflation, which Powell needed, was still ripping.

But he (and the BLS) was able get around this embarrassing CPI reality by simply lying about the actual inflation

In other words: Classic DC fork-tonguing…

China is Not Turning Japanese

But in case you still need further proof that the US wants and needs a weaker USD to fake its way out of their self-created debt disaster via an increasingly diluted USD at YOUR expense, just consider what’s happening with China.

Unbeknownst to many, Yellen has been scurrying off to Asia to convince, cajole or even threaten China into accepting a weaker USD vs the CNY.

Why?

Because the prior, “stronger” 40-year version of the Dollar has rendered expensive US exports (and trade deficits) unable to compete with cheaper Chinese goods.

This floating currency game was a trick the US played on Japan when I was a kid—i.e., weaken the USD to fight the then-rising Sun of Japan’s then rising power.

But China ain’t Japan. It won’t float its currency in dollar terms.

So, what then can the US do to weaken the USD without upsetting China?

Does DC Finally Want Higher Gold Prices?

Well, as Luke Gromen once again makes beautifully clear, the easiest path forward for all parties concerned is to simply (and finally) let gold go much, much higher.

The surest and steadiest path to a weaker USD is higher gold.

Yellen’s Treasury Department could use its Exchange Stabilization Fund to buy/sell gold and other financial securities to control the USD without having to rely so much on the Fed’s now embarrassing money printer.

Gold is now a critical pivot point and tool for the US. If gold went, for example, to $4000 while CNY gold sits at 16,000, China’s central bank would have to re-rate higher in Dollar terms, pushing the CNY higher.

But such an arrangement won’t upset China, as it holds a lot more gold than the World Gold Council reports.

Rather than float the CNY in Dollar terms, China could instead float its CNY in GOLD terms.

In short: A veritable win-win for the China and the US, with gold now leading the way.

Or stated otherwise, you know it’s gonna be a gold tailwind, when both China and DC are seeking higher gold.

Based on the foregoing, do you still think gold does nothing?

Think harder.

Friday, April 19, 2024

David Stockman on Why the Great Labor Arbitrage is Coming to an End

  I like reading David Stockman's articles because they remind us how the economic mess we're in happened and what comes next based on sound financial analysis.

  This is a good antidote to many conspiracy theories as when you look at the details you realize that the people in charge do not control as much as they or their detractors believe. It doesn't mean powerful people do not conspire, their full time job IS conspiring! But it means that a lot of what's going on is not under the control of anybody and most policies are ad-hoc reactions to unforeseen events. (Unlike the few events which actually are provoked such as 9/11 or the Covid crisis... But let's not get into that now. Here, we are talking about monetary policies.) 

 PS: But here too, like the previous video of Joel Skousen, I find David Stockman Old School. His cheap shots at AI and its "black Vikings" is a misunderstanding. AI does change everything and may in fact completely upend his analysis which  nevertheless remains good enough as far as the historic part is concerned to be read in full. Bottom line: We are facing the end of a financial system which will have to be reset one way of the other! Different people have different ideas on how this should happen. The most likely outcome is unfortunately war. Anything else would require social and economic compromises that are unheard of in history. Quite the opposite in fact. Social system tend to lose flexibility when under stress, not the opposite.

Guest Post by David Stockman

When it comes to Keynesian central banking, it might well be said that if you paint by the numbers you are stuck with the brush. That is to say, the Fed has turned its 2.00% target into an economic holy grail and therefore does not dare risk a rebound of the 40-year high inflationary pressures that remain directly in the rearview mirror.

Yes, the inflation gauges have cooled considerably since the 9% CPI (Consumer Price Index) peak of June 2022, but the Fed is not yet remotely out of the woods. In fact, when the inflation tide is viewed through the more stable and reliable lens of the 16% trimmed mean CPI, which peaked at a somewhat lower 7.2% level in 2022, the year-over-year (Y/Y) gain at 3.7% in January was still barely halfway back to the sacrosanct 2.00% goal.

Indeed, the annualized three-month rate of change in the trimmed mean CPI has rebounded to 4.0% already, while the annualized rate for January came in at a red hot 5.7%.

So, as much as the boys and girls on Wall Street insist on getting their juice, the paint-by-the-numbers crowd in the Eccles Building (Fed HQ) is not nearly there yet.

Y/Y Change in the 16% Trimmed Mean CPI, April 2020 to January 2024

For avoidance of doubt, just recall the horrific charts of 1967 to 1982. Back then the good folks in charge of the Fed were not even explicitly in the Greenspanian monetary central planning business but still had to generate four recessions during that span in order to get the inflation genie back in the jar.

To be sure, the twentysomething traders on Wall Street, who are braying ever more insistently for initiation of the next rate cut cycle, undoubtedly confuse the 1970s with the 1790s. It’s all an ancient blur in their minds, apparently.

The graybeards working toward their pensions in the Eccles Building, however, are not quite so nonchalant. They recall the triple peak of inflation from that era and undoubtedly still have the chart on their dashboards. The thundering central bank failure implicit in three inflationary surges (red bars) and four recessionary contractions (white areas) in just over a decade nearly destroyed the Fed’s open-ended remit as the nation’s unelected monetary politburo, to say nothing of its credibility on both ends of the Acela Corridor (New York and Washington, D.C.).

Y/Y Change in the CPI, 1967 to 1984

Therefore the current gang in charge is not about to flinch on their “higher for longer” call until they can see clearly the whites of those 2.00% inflationary eyes.

We don’t expect this prayed-for condition to be attained any time soon. That’s because the truth of the “lowflation” mirage of the last several decades cannot be buried indefinitely, nor even for much longer.

We are referring, of course, to the fact that there was a whole lot of inflation from the Fed’s madcap money printing even before it pulled out the stops on its printing presses in response to the so-called COVID-crisis in March 2020. But most of that came out in financial asset prices and in the real estate sector, bubbles that Wall Street pronounced to be a swell thing.

At the same time, most of the rest was temporarily exported to the rest of the world via the Fed’s flood of dollar liabilities, which were compliantly scooped up by mercantilist central banks in China, the petro-states and elsewhere in the rapidly mushrooming low-cost global manufacturing supply chains.

The chart below is not simply striking evidence that the 1.8% average inflation rate during the first two decades of this century was an aberration; it is actually the smoking gun!

Index of US Unit Labor Costs, 1970 to 2020

The Fed had grotesquely inflated the US economy during the 1970s cycles shown above and had been merely content to slow the further rise of these drastically higher price levels by the aforementioned 2.0% per annum during the later 1980s and 1990s. This occurred even as Mr. Deng was converting Mao’s ossified Communist economy into a manufacturing powerhouse by dint of a red hot capitalist style printing press at the People’s Bank of China and several hundred millions of newly-minted industrial workers flushed out of the rice paddies and subsistence villages of China.

American industry and wage workers had no chance. Thanks to the pro-inflation policies of the Fed both before and after Greenspan — save for the short interval of “Tall Paul” Volcker’s rescue of the American economy from the inflationary abyss — unit labor costs by the year 2000 were 235% higher than they had been in 1970 and by the eve of the pandemic crisis in March 2020 were actually up by 310%.

Of course, the soaring purple line in the chart above wasn’t supposed to matter according to the Keynesian economists running US economic policy. If America’s trade deficit got too large owing to massive offshoring and mushrooming trade deficits, surplus countries abroad like China were supposed to experience exchange rate appreciation and thereby an offsetting reduction in their competitive cost advantage.

Alas, that assumed printing-press money in the US would be countered by sound money abroad. Fat chance!

Foreign central banks printed stride for stride and then some with the Fed under what is best described as the “dirty float.” So doing, they bought up trillions of unwanted dollars, expanding their own money supplies as they did so, thereby keeping their trade surpluses intact and showering their export industries with cheap credit and capital.

So offshoring never slowed down. The exchange rate corrections and rebalancing of trade accounts never happened.

There is no mystery, therefore, about the cause of the great labor arbitrage and resulting offshoring of America’s industrial economy over the last 40 years. To wit, the objective condition of the global economy and internet linkages of producers and consumers everywhere on the planet meant that the US needed a sustained period of cost deflation to purge the inflationary excesses of the 1970s and after, not the pro-inflation policy that the Fed actually conducted.

For want of doubt, the chart below tells you all you need to know. Shortly after the turn of the century, the manufacturing wage gap between the US and China was 22X and even by 2015 it was still in the 5X range. And yet, the foolish Keynesian academics in the Eccles Building saw fit to essentially contend that still more inflation was the key to prosperity, a la their 2.00% target.

Nevertheless, the great labor arbitrage is now drawing to a swift close, in large part because China has completely drained its rice paddies. That is to say, as a matter of demographics and the legacy of its one-child policy, the Red Ponzi labor force peaked in 2015 and is now shrinking and will be shrinking as far as the eye can see.

Accordingly, wage costs are rising rapidly in China because even the Red Ponzi has not found a way to repeal the laws of supply and demand. Accordingly, the wage gap has narrowed to less than 20% and will likely disappear entirely before the end of the current decade.

The Great Labor Cost Arbitrage, 2000 to 2025

The underlying truth is that the Great Labor Arbitrage was a one-time event, not a permanent condition of the global economy. There are simply no more Chinas left on planet earth or even the nearby solar system.

And that gets us exactly to the Fed’s impending monetary Waterloo. It was able to print with relative impunity during the 1990 to 2020 period because the one-time export of the US industrial economy caused an utterly aberrant split screen deformation of the domestic price level.

To wit, the merchandise goods coming back into the US economy from offshore production were priced at levels far below the hideously inflated level of domestic production costs. As a result, the Personal Consumption Expenditures (PCE) deflator for durable goods (black line) actually declined by nearly 40% between 1995 and early 2020. That reflected not only the surging import share of durable goods, but the fact that on-margin imports set the price of domestically produced goods as well.

PCE Deflator: Durable Goods Versus Services, 1995 to 2020

There has never been anything like this sweeping deflation in the modern economic era. It was literally a freak of economic history, beyond any plausible avenue of continuation or replication.

By contrast, the PCE deflator for services, which are largely produced domestically and therefore within the Fed’s realm of influence, rose by more than 85% during the same period.

In annualized terms, therefore, the durables index declined by 2% per annum for a full quarter-century while the services index rose by 2.5% per year. It was a pure statistical anomaly and gift of dumb luck to the Eccles Building that the resulting overall PCE deflator rose, on the math, at 1.85% per annum.

And yet, and yet. The Keynesian pointy heads at the Fed declared this spat of dumb luck to be a “lowflation” problem requiring aggressive and sustained operations of its printing presses. In effect, they were looking a gift horse in the mouth and pretending it was an ogre.

Needless to say, with Chinese wages and costs rising rapidly and the arbitrage gap nearly closed, there is not a snowball’s chance in the hot place that the black line in the chart above will take another 40% dump lower. Not in a million years.

And that means, in turn, that the yawning gap in the above chart between goods deflation and services inflation will not recur. As it happens, the underlying services inflation is still in the +5% Y/Y range and will dominate the topline price level going forward far more heavily than it did during the aberrant era of 40% durables deflation.

Accordingly, the “lowflation” excuse for money printing is now deader than a doornail.

The fact is inflation isn’t and won’t be contained even at the Fed’s specious 2.00% target. And the last two decades have proved beyond a shadow of a doubt that aggressive money printing does not spur domestic investment and productivity, and therefore overall economic growth either.

What it does do is inflate asset bubbles on Wall Street because ultra-low interest rates purportedly justify higher price-to-earnings multiples. And that’s been the excuse all along for taking the Fed’s balance sheet from $300 billion when Greenspan was hit with the Black Monday meltdown in October 1987 to a peak of $9 trillion a few months back.

Alas, financial asset bubbles aren’t indefinitely sustainable either. They actually rang the bell on Wall Street Thursday when NVIDIA brushed up against a market cap of $2 trillion, representing 30X sales of chips that enable the likes of Google’s generative AI to render portraits of black people dressed as Vikings.

Even the Tulip Bulb Mania of 1637 never went that crazy.

Y/Y Change in CPI for Services, 2011 to 2024


A WARNING FROM A WISE OLD MAN, "THE TRIGGER EVENT FOR WW3" by Joel Skousen (Video - 1h20mn)

  Many interesting points in this video although I do disagree with quite a few fundamental aspects of the analysis. It is still far more intelligent and better grounded ideologically than most of what you hear in the media so well worth your time. China and Russia are presented as the enemy. I disagree, but you are entitled to think so if you defend the US hegemony and believe it must be maintained at all costs as most people do in the West, even if implicitly. 

  PS: Forget his anti-communism and rabid anti-Putin ranting. Old man he certainly is! More interesting when he talks about the Globalists although his conspiracies are convoluted. Some may be correct, others less so. Plenty of little known facts still.


 

OpenAI o3 Might Just Break the Internet (Video - 8mn)

  A catchy tittle but in fact just a translation of the previous video without the jargon. In other words: AGI is here!