All posts by Hutchins AAron

Born in Deutschland 1965, hometown was Bütthart, parents were not U.S. government employees. However, when father was tricked into joining the U.S. Air Force Civil Service, in 1969, with the promise that we could remain in Germany, we were promptly shipped off to Iran. Due to one of my Iranian educators being disappeared, along with her husband, by the U.S. ally Shah of Iran's Israeli & U.S. created Savak (for the then official terrorist act of promoting the idea that women can vote), and due to my U.S. citizen mother being placed on Savak's Terrorist Arrest List (for supporting the idea that women should vote, at that time the U.S. ally Shah of Iran did not allow women to vote, now they can) we left Iran for the United States in 1973, literally in the middle of the night. At the U.S. Embassy airbase the CIA operated Gooney Bird (C-47) was so packed with other U.S. citizens fleeing our ally Iran (because the Shah gave the OK to arrest any U.S. citizen for such terrorist acts as promoting the concept of voting) that we were turned away by the Loadmaster and had to take a chance on a civilian flight out of Tehran's airport. My father told me he and my mother had three culture shocks; first when they arrived in Germany as civilians, then after being shipped off to Iran as U.S. government employees, then again returning to the United States as unemployed civilians (because so much had changed in the U.S. while they were gone, their only news source was the U.S. Armed Forces Radio & Television Service which heavily censored information about the home front). Since I graduated high school in 1982 I've worked for U.S. government contractors and state & local government agencies (in California), convenience store manager in California, retail/property management in Georgia, California and Idaho. Spent the 1990s in the TV news business producing number one rated local news programs in California, Arizona and Idaho. 14+ years with California and Idaho Army National Guard and the U.S. Air Force. Obtained a BA degree in International Studies from Idaho State University at the age of 42. Unemployed since 2015, so don't tell me the economy has recovered.
Business/Economics, International, U.S.

What Economic Recovery? Global Hyperinflation, incouraged by the U.S. and Europe, China is the only one doing the right thing

“While the markets can operate on false scenarios for a significant period of time, reality always wins in the end. When it does, the situation can get quite ugly and all the profits gained from a belief in an unsupportable viewpoint can evaporate over night. At the moment, there is a lot of denial about inflation and investors should be paying attention to this.”-Daryl Montgomery, Independent Trader

People need to start studying up on basic economics.  What the G7 and the U.S. Federal Reserve are doing will lead to catastrophe, for the little guy.

After an emergency meeting on August 7, the Group of 7 most industrialized countries decided to deal with the growing debt crisis, of Europe and the United States, by flooding the markets with cash (liquidity).  One way to do that is to buy massive amounts of bonds, which is what the European Central Bank (ECB) did.

Following the G7 meeting the ECB began buying up Italian and Spanish bonds, even though the week before Germany was advising against such a move, because Italy and Spain were too bad off to be trusted to pay them back.

Injecting cash into markets, like buying up bond issues, can have the same result as overprinting money; hyperinflation.  The most recent case of hyperinflation took place in Zimbabwe.  It lasted from 2004-2009, and is considered the second worst case of hyperinflation in the world.  It happened after their economy crashed, and the government responded by overprinting money  (by the way the U.S. has been overprinting money for years now).

In a statement, the G7 (which includes the United States) tried to say their move to flood markets with cash will work as long as government fiscal policy remains “disciplined”.  There was no clarification what they meant by “disciplined”, but surely they mean that as long as governments, mainly European, continue to cut spending and increase taxes to pay their government debts, then hyperinflation should not be a concern.

Why would that be? Possibly because so many people are out of work, which reduces the flow of money in the consumer markets, and, increased taxes reduces the amount of spending money a consumer, who still has a job, has.  Also, cutting government spending is another way to reduce liquidity in the consumer markets.

But flooding markets with cash isn’t the only way to create hyperinflation, keeping interest rates low can do the same thing.  And keeping them artificially low for long periods of time will only make things worse.  That’s exactly what the U.S. Federal Reserve (a privately run central bank) is doing.

On August 9, the Federal Reserve (incorrectly referred to as The Fed, incorrect because it’s not a government agency. The Fed, or Feds, usually refers to a government agency, in fact it used to refer to the FBI), announced it would keep interest rates low, again.  Not only that but they would so so until 2013, with the possibility of lowering it even more.

The interest rate, that the mainstream media is always talking about but surely doesn’t understand, is the Federal Funds Rate.  This rate does NOT affect us little guys.  It is the interest that banks pay each other for borrowing money from each other.  Only in theory does it “trickle down” to us little people in the form of lower credit card and loan rates, and even supposedly on the interest rates the banks give us for putting our money into their so called “savings” accounts.

The past decade has proven that keeping the Federal Funds rate low does NOT “trickle down” to the little guy, working class, consumer level.

And that’s the point.  There is nothing being done to help the average John Q Public.  Everything is being done to help the big guys, the Man, the elites and their global corporations/governments.  Keeping interest rates low for the big guys, and flooding the markets with cash (only for the benefit of the big guys) are short term actions that will result in long term pain for the little guy (as if the little guy isn’t in pain now).

Even investment advisers are warning people of the dangers: “…governments that engage in this behavior frequently go to great lengths to ensure the public doesn’t make the connection and realize that inflation is caused by government actions.”–Daryl Montgomery, Independent Trader

Now, there are some officials with the Federal Reserve that are also sounding a warning.  Narayana Kocherlakota, the president of the Federal Reserve’s Minneapolis bank, has been arguing for an increase in interest rates: “Central bankers alone cannot solve the world’s economic problems.”

Kocherlakota wants to raise the Federal Funds Rate by at least a half a percent.  He says most of the economic problems in the U.S. are a result of mismatches between the labor market, and employers, and that is something the Federal Reserve can not influence.  It’s proof that what Central Banks are doing have nothing to do with solving the bad employment situation.

China seems to be the only country that’s following traditional economic policies regarding the prevention of inflation.  So far this year the inflation rate in China has hit 6.5%.  China is blaming the slow down in their economy partly on domestic inflation.

China is experiencing inflation because more people are making more money, which means more money available on the consumer market.  It’s being exacerbated by foreign banks loaning money to Chinese consumers.

China has instituted policies to restrict the money flow, by making it almost impossible for people to qualify for home loans, and even auto loans.  They’ve recently banned certain loans being issued by foreign banks.  The Bank of China is also raising their interest rates.

It hurts consumers, only in that it’s much harder to get a loan, but it restricts the amount of money in the consumer market, which is supposed to keep inflation down, which benefits consumers in the long run.  Also, if you’re a saver then you benefit by getting higher interest on your traditional savings account.

Bottom line: Low interest rates and flooding markets with cash only benefits the big guys, and only for the short run.  In the long run it will hurt everyone.

 

 

 

International

Britain Burning: Scottish Cops to take on English riots, Scotland criticizes BBC for its coverage of the riots

“The officers, equipment and vehicles will come from all eight Scottish forces. The situation is being constantly monitored between the Association of Chief Police Officers Scotland and colleagues in England, and any further assistance required will be given careful consideration.”-ACPOS statement

The Scottish Parliament has agreed to send forces to England, to deal with the on going riots.  Scottish officials also criticized the British Broadcasting Corporation for stating that the riots were taking place all across the U.K.: “We know we have a different society in Scotland, and one of my frustrations yesterday was to see this being described on BBC television and Sky as ‘riots in the U.K.'”-Alex Salmond, First Minister

So far the riots have only affected England, although Scottish police say they arrested two Scottish teens for trying to start similar riots in Scotland.

 

International

Israeli soldiers join lower class in protesting bad economy in Israel, class warfare within the Israeli army

At least eleven Israeli soldiers, with Kfir Brigade’s Duchifat Battalion, are refusing to follow orders, on the grounds they are not getting any financial help from the military, and they can not afford to buy their own military related supplies.

Military service in Israel is mandatory. Men must serve three years, and women must serve two years.

For weeks now poor Israelis have been protesting the skyrocketing cost of living.  Now the protests of eleven soldiers reveals that the Israeli military is divided along class lines.  The soldiers from lower income families claim they are constantly ridiculed for their economic situation.

They also claim the military is depriving them of meals, and they deserted because they’re going hungry.  They have tried using the chain of command to report what is going on, but have been ignored.

 

 

International

Israel threatens War with Syria, if the UN recognizes a Palestinian state

The Israeli Defense Forces believe they will have to go to war with Syria, if the United Nations recognizes the Palestinian state in September.

The IDF believes that Syria will send thousands of Palestinian supporters to the Israel/Syria border.  The IDF says they will respond by shooting anyone who tries to come in from Syria, and they believe Syria will use that as an excuse to invade.

Instead of not shooting at any future demonstrators on the Israeli/Syria border, in order to avoid a war, Israeli military officials are using this “scenario” to justify drawing up plans to invade Syria!

The IDF also said that they are increasing training in civil disturbances, especially toughening mental attitudes “…because the cadets learn primarily how to fight an armed enemy, and dealing with civilians requires different measures.”

Also, Israeli officials will increase military presence on Israel’s borders, and in the West Bank and Gaza, if the UN officially recognizes a Palestinian state in September.

 

Business/Economics, International

Britain Burning: Iran ready to send troops, calls U.K. leaders autocratic oppressors

“The Ashura brigades of Basij forces are ready to be deployed to London as peacekeeping forces.”- Brigadier General Mohammad-Reza Naqdi

Since the beginning of the riots in England, Iran has been critical of the U.K. government’s handling of the crisis.

Iranian officials pointed out that London police have Big Brother style surveillance cameras all over the city.  At last count, there are 4.6 million security cameras, and only one million people living in London.  So why is it so difficult for them to track down the “thugs”?  Why, with all those security cameras on just about every street, didn’t police react sooner?

Iranian officials also point out that most of the “thugs” are the deprived lower classes of Britain.

Iranian military commanders say that if the United Nations decides to send peacekeepers to the U.K., Iranian troops are ready to go now.

 

U.S.

Pacific Ring of Fire: Alaska volcano threatens air traffic

The Colorado volcano in Alaska is erupting, something that was predicted back in July.  Scientists think the eruptions could get bigger, based on satellite images.

The volcano is on an island (part of the Aleutian Islands) and doesn’t threaten people, but, because it’s thought the volcano’s eruptions could get bigger, it poses a threat to air traffic.

Scientists are so worried about a major eruption that they’ve ruled out flying to the island for closer inspection.

The volcano has frequent minor eruptions.  The last big eruption was in 2001, when the lava flows made it to he ocean.

 

Fukushima

Government Incompetence: Agency deliberately erased human radiation contaminaton data!

The Japanese Nuclear Safety Commission deliberately erased all the data collected regarding the radiation contamination of children in Fukushima Prefecture!

Officials claim that since the date was public it threatened the privacy of the families!

Since the nuclear disaster following the 11 March 2011 quake and tsunami, more than 1,000 children, aged 15 or younger, were being monitored for the effects of radiation on their thyroid.

The problem is that no one else was keeping such data, and now it’s gone!  The decision to delete the data is only justifying the growing lack of trust the Japanese have in their government.

Business/Economics, International

United Police Kingdom, England Burning: British Bobbies shot first, official inquiry says no evidence that father of four ever shot at police

The shot that started the riots, that have been going on since this past weekend, was fired by cops, and cops only!

The Independent Police Complaints Commission says there is no evidence that a father of four, who was shot in a taxi and killed by police, was armed or even shot at police.

The police who shot him claimed, as usual, that he shot at them first, and that a gunfight ensued, in which he was killed.  As usual the police claim self defense.

Also, at least a day ago the police claim they had recovered a “non-police” issue gun belonging to the “gang leader”.  The Independent Police Complaints Commission says that’s a bold faced lie!  The Commission found no such gun!

The Commission says the father of four was killed by one shot to the chest.  A Scotland Yard (London Met) bobbie fired two shots in total.  That sure doesn’t sound like a gun battle.  Unfortunately the investigation is being given six months to make a final report.

Maybe the poor people of Merry Old Police State England are justified?  The bobbies thought they were taking out a modern day Robin Hood, now there are thousands of Robin Hoods swarming the streets!

U.S.

United Police States of America: Two U.S. courts say Rumsfeld is NOT immune from being charged with torture, Obama is on Rumsfeld’s side says your rights don’t count

“Plaintiffs have alleged sufficient facts to show that Secretary Rumsfeld personally established the relevant policies that caused the alleged violations of their constitutional rights during detention.”-Seventh Circuit Court of Appeals

August 8, a Federal appeals court ruled that former Secretary of Defense, Donald Rumsfeld, is not immune from being sued for torture.

Interestingly, the two people suing Rumsfeld are U.S. citizens, and former security agents as well.

The two former private security agents, were detained and tortured, in Iraq by U.S. personnel, with sleep deprivation, and deprived of food and water.  They claim they were detained because they were trying to blow the whistle on the illegal activities of their employer.

The two agents suspected their employer of making improper payments to Iraqi officials, and that fellow employees were engaged in weapons-trafficking.  After providing U.S. officials with information they were suddenly detained.  The two agents were never charged with anything.

In another case, last week a Federal court in Washington DC ruled that Rumsfeld can indeed be sued for torture.

In that case a U.S. military contractor was also tortured by U.S. personnel in Iraq.  Government officials say the contractor was passing information to the enemy, but, for some reason, after torturing him, the government decided not file charges and let him go.

Don’t think President Barack Obama influenced the courts’ decision.  Obama supports Rumsfeld, saying, effectively, that U.S. citizens have no rights when they’re in a combat zone. The U.S. Justice Department is planning to appeal the latest Federal court decisions.

 

 

 

International

England Burning: Riots spread to 3 cities, police using armored cars, Cameron ends luxury vacation early, poor people redistributing the wealth

“There’s been tension for a long time. The kids aren’t happy. They hate the police. It’s like a war zone and the police weren’t doing anything. There were too many people and not enough police.”-Matthew Yeoland, 43-year-old teacher in Peckham.

Violence has spread to three cities now; London, Birmingham and Liverpool.  Police are using armored vehicles in the worst hit districts of London.

Prime Minister David Cameron cut short his summer vacation in Italy, after first saying he would continue with his vacation.

There are so many fires being fought in London, that Thames Water is warning its customers their water pressure will drop.

Most British media, and most British officials say there is no correlation with the riots in the various districts and cities, and no justification.

Many rioters are poor people who’ve been struggling for years to find employment.  They’re also the people who’re being hit the hardest but the government spending cuts.  Remember, the leaders of the United Kingdom force drastic cuts on social programs, then go on luxury vacations!

In answer to officials calling the rioters “thugs” one man said it was pay back time: “This is the uprising of the working class. We’re redistributing the wealth.”-Bryn Phillips

Young people in the U.K. are especially upset over huge increases in college tuition, cuts in social programs and the total lack of jobs for youth.  The unemployment rate is the highest for young adults in the U.K.

Police are so desperate they’re even asking parents to control their children, to keep them from rioting.

The original violence started in Tottenham, after a man was shot to death by police. The family of the man say he was unarmed, and sitting in the back of a taxi when he was shot.