Category Archives: economics

Capitalism In America: How A Dismal Decimal Is Robbing Americans Blind | Zero Hedge

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The United States is an oligarchy

This concentration of the income and wealth on the top, proves that the United States is an oligarchy. A 2014, study by Princeton University  demonstrated how the US is a political oligarchy. With this report showing the insanely widening income and wealth inequality, my aim is to show, that the country is an economic oligarchy, too. In fact, economic super riches are the precondition for their political power, too. In America, as always, the oligarchy has achieved their uncontested power in a hermeneutical feedback loop, where the initial wealth of the superrich has bought them increased political power, which has given them increased riches, which has bought them more political power, and so on, until today, when they own practically the whole economy and the entire government. Clearly the source of higher inequality has been Fed policies, which has pushed cheap money into the pockets of the already rich, who have exclusively then benefited from soaring stock and real estate prices.

Fittingly, we got end of 2019 a report revealing that the world’s richest people increased their wealth in the year by $1.2 trillion, a staggering 25%, most of which belong to the oligarchs of the United States.

The question – which I have set to explore in my series of Capitalism in America – is whether there has been a game plan, a long-term strategy or whether intermittent achievements have just spurred the oligarchs on to new economic and political power grabs in the course of establishing their totalitarian rule. I tend to think, there has been a long-term plan ever since the establishment of the Federal Reserve. The economic and political history of the United States provide so much circumstantial evidence, which supports the view that there has been a conspiracy of the Wall Street elite. I shall return to this hypothesis in further installments to this series of Capitalism in America. It is however clear – whether through a long-term plan or by a series of ad hoc interventions – the US financial elite has by now completed a creeping coup, which have delivered them absolute economic and political power.

*  *  *

In my investigation of the oligarchization of America – the creeping neoliberal oligarch coop, which set in full force since Reagan – I have so far completed these instalments:

  • The first installment was a study showing how all corporate ownership has been concentrated in the hands of the oligarchy, titled Extreme concentration of ownership in the United States
  • The second part was a study revealing how the oligarchy has totally taken over US media, titled The Oligarch Takeover of US Media
  • The third installment was a report published on the Saker blog titled New World Order in Meltdown, But Russia Stronger Than Ever
  • The fourth installment, The Oligarch Takeover of US Pharma and Healthcare  was also on the Saker blog.
  • Next due is a report showing how from point of view of political science the oligarchy has destroyed the social fabric of the US economy and deliberately enacted laws that favor the few over the people. Of particular interest here is how the oligarchy has rigged the political system by institutionally solidifying the mendacious Janus- faced two-party system in order to remove any potential challenge to their rule.

Source: Capitalism In America: How A Dismal Decimal Is Robbing Americans Blind | Zero Hedge

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Coping With Global (& Local) Chaos: What You Can Control And What You Can’t

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Authored by Daisy Luther via The Organic Prepper blog,

Have you been glued to the news lately, nervously watching what’s going on in the Middle East? Are you concerned that World War III is about to kick off at any moment? Is the state of the economy frequently on your mind? Maybe it’s Ebola that keeps you up at night or the risk of a cyberattack or an EMP or that the political party not of your choosing will take over the government.

I’ve seen a lot of people expressing worry and fear. They’re afraid we’re about to get involved in a war. They’re worried about terror attacks and conflicts on American soil. They’re terrified that their sons and daughters will be sent off to risk their lives and limbs in another Afghanistan.

 

Source: Coping With Global (& Local) Chaos: What You Can Control And What You Can’t | Zero Hedge

A New Kind Of Tyranny: The Global State’s War On Those Who Speak Truth To Power | Zero Hedge

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What happens to Julian Assange and to Chelsea Manning is meant to intimidate us, to frighten us into silence. By defending Julian Assange, we defend our most sacred rights. Speak up now or wake up one morning to the silence of a new kind of tyranny. The choice is ours.”

– John Pilger, investigative journalist

All of us are in danger.

In an age of prosecutions for thought crimes, pre-crime deterrence programs, and government agencies that operate like organized crime syndicates, there is a new kind of tyranny being imposed on those who dare to expose the crimes of the Deep State, whose reach has gone global.

The Deep State has embarked on a ruthless, take-no-prisoners, all-out assault on truth-tellers.

Activists, journalists and whistleblowers alike are being terrorized, traumatized, tortured and subjected to the fear-inducing, mind-altering, soul-destroying, smash-your-face-in tactics employed by the superpowers-that-be.

Take Julian Assange, for example.

Assange, the founder of WikiLeaks—a website that published secret information, news leaks, and classified media from anonymous sources—was arrested on April 11, 2019, on charges of helping U.S. Army intelligence analyst Chelsea Manning access and leak more than 700,000 classified military documents that portray the U.S. government and its military as reckless, irresponsible and responsible for thousands of civilian deaths.

Included among the leaked Manning material were the Collateral Murder video (April 2010), the Afghanistan war logs (July 2010), the Iraq war logs (October 2010), a quarter of a million diplomatic cables (November 2010), and the Guantánamo files (April 2011).

The Collateral Murder leak included gunsight video footage from two U.S. AH-64 Apache helicopters engaged in a series of air-to-ground attacks while air crew laughed at some of the casualties. Among the casualties were two Reuters correspondents who were gunned down after their cameras were mistaken for weapons and a driver who stopped to help one of the journalists. The driver’s two children, who happened to be in the van at the time it was fired upon by U.S. forces, suffered serious injuries.

This is morally wrong.

It shouldn’t matter which nation is responsible for these atrocities: there is no defense for such evil perpetrated in the name of profit margins and war profiteering.

In true Orwellian fashion, however, the government would have us believe that it is Assange and Manning who are the real criminals for daring to expose the war machine’s seedy underbelly.

Since his April 2019 arrest, Assange has been locked up in a maximum-security British prison—in solitary confinement for up to 23 hours a day—pending extradition to the U.S., where if convicted, he could be sentenced to 175 years in prison.

Whatever is being done to Assange behind those prison walls—psychological torture, forced drugging, prolonged isolation, intimidation, surveillance—it’s wearing him down.

In court appearances, the 48-year-old Assange appears disoriented, haggard and zombie-like.

“In 20 years of work with victims of war, violence and political persecution I have never seen a group of democratic States ganging up to deliberately isolate, demonise and abuse a single individual for such a long time and with so little regard for human dignity and the rule of law,” declared Nils Melzer, the UN special rapporteur on torture.

It’s not just Assange who is being made to suffer, however.

Manning, who was jailed for seven years from 2010 to 2017 for leaking classified documents to Wikileaks, was arrested in March 2019 for refusing to testify before a grand jury about Assange, placed in solitary confinement for almost a month, and then sentenced to remain in jail either until she agrees to testify or until the grand jury’s 18-month term expires.

Federal judge Anthony J. Trenga of the Eastern District of Virginia also fined Manning $500 for every day she remained in custody after 30 days, and $1,000 for every day she remains in custody after 60 days, a chilling—and financially crippling—example of the government’s heavy-handed efforts to weaponize fines and jail terms as a means of forcing dissidents to fall in line.

This is how the police state deals with those who challenge its chokehold on power.

Make no mistake: the government is waging war on journalists and whistleblowers for disclosing information relating to government misconduct that is within the public’s right to know.

Yet while this targeted campaign—aided, abetted and advanced by the Deep State’s international alliances—is unfolding during President Trump’s watch, it began with the Obama Administration’s decision to revive the antiquated, hundred-year-old Espionage Act, which was intended to punish government spies, and instead use it to prosecute government whistleblowers.

Unfortunately, the Trump Administration has not merely continued the Obama Administration’s attack on whistleblowers. It has injected this war on truth-tellers and truth-seekers with steroids and let it loose on the First Amendment.

In May 2019, Trump’s Justice Department issued a sweeping new “superseding” secret indictment of Assange—hinged on the Espionage Act—that empowers the government to determine what counts as legitimate journalism and criminalize the rest, not to mention giving “the government license to criminally punish journalists it does not like, based on antipathy, vague standards, and subjective judgments.”

Noting that the indictment signaled grave dangers for freedom of the press in general, media lawyer Theodore J. Boutrous, Jr., warned, “The indictment would criminalize the encouragement of leaks of newsworthy classified information, criminalize the acceptance of such information, and criminalize publication of it.”

Boutrous continues:

[I]t doesn’t matter whether you think Assange is a journalist, or whether WikiLeaks is a news organization. The theory that animates the indictment targets the very essence of journalistic activity: the gathering and dissemination of information that the government wants to keep secret. You don’t have to like Assange or endorse what he and WikiLeaks have done over the years to recognize that this indictment sets an ominous precedent and threatens basic First Amendment values…. With only modest tweaking, the very same theory could be invoked to prosecute journalists for the very same crimes being alleged against Assange, simply for doing their jobs of scrutinizing the government and reporting the news to the American people.

We desperately need greater scrutiny and transparency, not less.

Indeed, transparency is one of those things the shadow government fears the most. Why? Because it might arouse the distracted American populace to actually exercise their rights and resist the tyranny that is inexorably asphyxiating their freedoms.

This need to shed light on government actions—to make the obscure, least transparent reaches of government accessible and accountable—was a common theme for Supreme Court Justice Louis Brandeis, who famously coined the phrase, “Sunlight is the best disinfectant.”

Writing in January 1884, Brandeis explained:

Light is the only thing that can sweeten our political atmosphere—light thrown upon every detail of administration in the departments; light diffused through every policy; light blazed full upon every feature of legislation; light that can penetrate every recess or corner in which any intrigue might hide; light that will open up to view the innermost chambers of government, drive away all darkness from the treasury vaults; illuminate foreign correspondence; explore national dockyards; search out the obscurities of Indian affairs; display the workings of justice; exhibit the management of the army; play upon the sails of the navy; and follow the distribution of the mails.

Of course, transparency is futile without a populace that is informed, engaged and prepared to hold the government accountable to abiding by the rule of law.

For this reason, it is vital that citizens have the right to criticize the government without fear.

After all, we’re citizens, not subjects. For those who don’t fully understand the distinction between the two and why transparency is so vital to a healthy constitutional government, Manning explains it well:

When freedom of information and transparency are stifled, then bad decisions are often made and heartbreaking tragedies occur – too often on a breathtaking scale that can leave societies wondering: how did this happen? … I believe that when the public lacks even the most fundamental access to what its governments and militaries are doing in their names, then they cease to be involved in the act of citizenship. There is a bright distinction between citizens, who have rights and privileges protected by the state, and subjects, who are under the complete control and authority of the state.

Manning goes on to suggest that the U.S. “needs legislation to protect the public’s right to free speech and a free press, to protect it from the actions of the executive branch and to promote the integrity and transparency of the US government.”

Technically, we’ve already got such legislation on the books: the First Amendment.

The First Amendment gives the citizenry the right to speak freely, protest peacefully, expose government wrongdoing, and criticize the government without fear of arrest, isolation or any of the other punishments that have been meted out to whistleblowers such as Edwards Snowden, Assange and Manning.

The challenge is holding the government accountable to obeying the law.

Almost 50 years ago, the U.S. Supreme Court ruled 6-3 in United States v. Washington Post Co. to block the Nixon Administration’s attempts to use claims of national security to prevent The Washington Post and The New York Times from publishing secret Pentagon papers on how America went to war in Vietnam.

As Justice William O. Douglas remarked on the ruling, “The press was protected so that it could bare the secrets of government and inform the people. Only a free and unrestrained press can effectively expose deception in government. And paramount among the responsibilities of a free press is the duty to prevent any part of the government from deceiving the people and sending them off to distant lands to die of foreign fevers and foreign shot and shell.”

Almost 50 years later, with Assange being cast as the poster boy for treason, we’re witnessing yet another showdown, which pits the people’s right to know about government misconduct against the might of the military industrial complex.

Yet this isn’t merely about whether whistleblowers and journalists are part of a protected class under the Constitution. It’s a debate over how long “we the people” will remain a protected class under the Constitution.

Following the current downward trajectory, it won’t be long before anyone who believes in holding the government accountable is labeled an “extremist,” is relegated to an underclass that doesn’t fit in, must be watched all the time, and is rounded up when the government deems it necessary.

Eventually, we will all be potential suspects, terrorists and lawbreakers in the eyes of the government

Partisan politics have no place in this debate: Americans of all stripes would do well to remember that those who question the motives of government provide a necessary counterpoint to those who would blindly follow where politicians choose to lead.

We don’t have to agree with every criticism of the government, but we must defend the rights of all individuals to speak freely without fear of punishment or threat of banishment.

Never forget: what the architects of the police state want are submissive, compliant, cooperative, obedient, meek citizens who don’t talk back, don’t challenge government authority, don’t speak out against government misconduct, and don’t step out of line.

What the First Amendment protects—and a healthy constitutional republic requires—are citizens who routinely exercise their right to speak truth to power.

As I make clear in my book Battlefield America: The War on the American People, the right to speak out against government wrongdoing is the quintessential freedom.

Be warned: this quintessential freedom won’t be much good to anyone if the government makes good on its promise to make an example of Assange as a warning to other journalists intent on helping whistleblowers disclose government corruption.

Once again, we find ourselves reliving George Orwell’s 1984, which portrayed in chilling detail how totalitarian governments employ the power of language to manipulate the masses.

In Orwell’s dystopian vision of the future, Big Brother does away with all undesirable and unnecessary words and meanings, even going so far as to routinely rewrite history and punish “thoughtcrimes.”

Much like today’s social media censors and pre-crime police departments, Orwell’s Thought Police serve as the eyes and ears of Big Brother, while the other government agencies peddle in economic affairs (rationing and starvation), law and order (torture and brainwashing), and news, entertainment, education and art (propaganda).

Orwell’s Big Brother relies on Newspeak to eliminate undesirable words, strip such words as remained of unorthodox meanings and make independent, non-government-approved thought altogether unnecessary.

Where we stand now is at the juncture of OldSpeak (where words have meanings, and ideas can be dangerous) and Newspeak (where only that which is “safe” and “accepted” by the majority is permitted). The power elite has made their intentions clear: they will pursue and prosecute any and all words, thoughts and expressions that challenge their authority.

This is the final link in the police state chain.

Having been reduced to a cowering citizenry—mute in the face of elected officials who refuse to represent us, helpless in the face of police brutality, powerless in the face of militarized tactics and technology that treat us like enemy combatants on a battlefield, and naked in the face of government surveillance that sees and hears all—our backs are to the walls.

From this point on, we have only two options: go down fighting, or capitulate and betray our loved ones, our friends and ourselves by insisting that, as a brainwashed Winston Smith does at the end of Orwell’s 1984, yes, 2+2 does equal 5.

As George Orwell recognized, “In a time of deceit telling the truth is a revolutionary act.”

 

I Got Access to My Secret Consumer Score. Now You Can Get Yours, Too.

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There are many companies in the business of scoring consumers. The challenge is to identify them. Once you do, the instructions on getting your data will probably be buried in their privacy policies. Ctrl-F “request” is a good way to find it. Most of these companies will also require you to send a photo of your driver’s license to verify your identity. Here are five that say they’ll share the data they have on you.

  • Sift, which determines consumer trustworthiness, asks you to email privacy@sift.com. You’ll then have to fill out a Google form.

  • Zeta Global, which identifies people with a lot of money to spend, lets you request your data via an online form.

  • Retail Equation, which helps companies such as Best Buy and Sephora decide whether to accept or reject a product return, will send you a report if you email returnactivityreport@theretailequation.com.

  • Riskified, which develops fraud scores, will tell you what data it has gathered on your possible crookedness if you contact privacy@riskified.com.

  • Kustomer, a database company that provides what it calls “unprecedented insight into a customer’s past experiences and current sentiment,” tells people to email privacy@kustomer.com.

Just because the companies say they’ll provide your data doesn’t mean they actually will.

Source: I Got Access to My Secret Consumer Score. Now You Can Get Yours, Too. – The New York Times

Explainer: What is a quantum computer? – MIT Technology Review

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ed. there is much talk about a quantum financial system. I would suggest this isn’t happening. Read on. Fascinating stuff!

This is the first in a series of explainers on quantum technology. The other two are on quantum communication and post-quantum cryptography.

A quantum computer harnesses some of the almost-mystical phenomena of quantum mechanics to deliver huge leaps forward in processing power. Quantum machines promise to outstrip even the most capable of today’s—and tomorrow’s—supercomputers.

They won’t wipe out conventional computers, though. Using a classical machine will still be the easiest and most economical solution for tackling most problems. But quantum computers promise to power exciting advances in various fields, from materials science to pharmaceuticals research. Companies are already experimenting with them to develop things like lighter and more powerful batteries for electric cars, and to help create novel drugs.

The secret to a quantum computer’s power lies in its ability to generate and manipulate quantum bits, or qubits. 

What is a qubit?

Today’s computers use bits—a stream of electrical or optical pulses representing 1s or 0s. Everything from your tweets and e-mails to your iTunes songs and YouTube videos are essentially long strings of these binary digits.

Quantum computers, on the other hand, use qubits, which are typically subatomic particles such as electrons or photons. Generating and managing qubits is a scientific and engineering challenge. Some companies, such as IBM, Google, and Rigetti Computing, use superconducting circuits cooled to temperatures colder than deep space. Others, like IonQ, trap individual atoms in electromagnetic fields on a silicon chip in ultra-high-vacuum chambers. In both cases, the goal is to isolate the qubits in a controlled quantum state.

Qubits have some quirky quantum properties that mean a connected group of them can provide way more processing power than the same number of binary bits. One of those properties is known as superposition and another is called entanglement. 

What is superposition? 

Qubits can represent numerous possible combinations of and 0 at the same time. This ability to simultaneously be in multiple states is called superposition. To put qubits into superposition, researchers manipulate them using precision lasers or microwave beams.

Thanks to this counterintuitive phenomenon, a quantum computer with several qubits in superposition can crunch through a vast number of potential outcomes simultaneously. The final result of a calculation emerges only once the qubits are measured, which immediately causes their quantum state to “collapse” to either or 0

What is entanglement? 

Researchers can generate pairs of qubits that are “entangled,” which means the two members of a pair exist in a single quantum state. Changing the state of one of the qubits will instantaneously change the state of the other one in a predictable way. This happens even if they are separated by very long distances.

Nobody really knows quite how or why entanglement works. It even baffled Einstein, who famously described it as “spooky action at a distance.” But it’s key to the power of quantum computers. In a conventional computer, doubling the number of bits doubles its processing power. But thanks to entanglement, adding extra qubits to a quantum machine produces an exponential increase in its number-crunching ability.

Quantum computers harness entangled qubits in a kind of quantum daisy chain to work their magic. The machines’ ability to speed up calculations using specially designed quantum algorithms is why there’s so much buzz about their potential.

That’s the good news. The bad news is that quantum machines are way more error-prone than classical computers because of decoherence. 

What is decoherence? 

The interaction of qubits with their environment in ways that cause their quantum behavior to decay and ultimately disappear is called decoherence. Their quantum state is extremely fragile. The slightest vibration or change in temperature—disturbances known as “noise” in quantum-speak—can cause them to tumble out of superposition before their job has been properly done. That’s why researchers do their best to protect qubits from the outside world in those supercooled fridges and vacuum chambers.

But despite their efforts, noise still causes lots of errors to creep into calculations. Smart quantum algorithms can compensate for some of these, and adding more qubits also helps. However, it will likely take thousands of standard qubits to create a single, highly reliable one, known as a “logical” qubit. This will sap a lot of a quantum computer’s computational capacity.

And there’s the rub: so far, researchers haven’t been able to generate more than 128 standard qubits (see our qubit counter here). So we’re still many years away from getting quantum computers that will be broadly useful.

That hasn’t dented pioneers’ hopes of being the first to demonstrate “quantum supremacy.”

What is quantum supremacy?

It’s the point at which a quantum computer can complete a mathematical calculation that is demonstrably beyond the reach of even the most powerful supercomputer.

It’s still unclear exactly how many qubits will be needed to achieve this because researchers keep finding new algorithms to boost the performance of classical machines, and supercomputing hardware keeps getting better. But researchers and companies are working hard to claim the title, running tests against some of the world’s most powerful supercomputers.

There’s plenty of debate in the research world about just how significant achieving this milestone will be. Rather than wait for supremacy to be declared, companies are already starting to experiment with quantum computers made by companies like IBM, Rigetti, and D-Wave, a Canadian firm. Chinese firms like Alibaba are also offering access to quantum machines. Some businesses are buying quantum computers, while others are using ones made available through cloud computing services.

Where is a quantum computer likely to be most useful first?

One of the most promising applications of quantum computers is for simulating the behavior of matter down to the molecular level. Auto manufacturers like Volkswagen and Daimler are using quantum computers to simulate the chemical composition of electrical-vehicle batteries to help find new ways to improve their performance. And pharmaceutical companies are leveraging them to analyze and compare compounds that could lead to the creation of new drugs.

The machines are also great for optimization problems because they can crunch through vast numbers of potential solutions extremely fast. Airbus, for instance, is using them to help calculate the most fuel-efficient ascent and descent paths for aircraft. And Volkswagen has unveiled a service that calculates the optimal routes for buses and taxis in cities in order to minimize congestion. Some researchers also think the machines could be used to accelerate artificial intelligence.

It could take quite a few years for quantum computers to achieve their full potential. Universities and businesses working on them are facing a shortage of skilled researchers in the field—and a lack of suppliers of some key components. But if these exotic new computing machines live up to their promise, they could transform entire industries and turbocharge global innovation.

Source: Explainer: What is a quantum computer? – MIT Technology Review