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The Federalization of Police and the Lucifer Effect

Who benefits from police militarization and steroid-fueled hyper-aggression? Who benefits from indoctrinating cops in tactics and an “us-vs-them” gang mentality that alienates them from their community?  It sure as hell isn’t the cops.  The deliberate creation of atrocity-inducing situations is a well-researched and well-worn means of orchestrating social control through division in prisons and on the battlefield.  Why is the federal government using such techniques not only in domestic police training but in attempting to manipulate the public reaction to it?  Is it paranoid to question whether they’re trying to create a dictatorship where everyone is too fearful to question orders, whether they’re cops or “civilians”?

The federalization of the police is not happening in a vacuum.  What we’re witnessing is the end game of the luciferians’ reaction to the 60’s rebellions, where for the first time domestic dissent became a serious impediment to conducting a bankster war.   The 60’s were followed by policy papers from elite think tanks, such as “The Crisis of Democracy” by Brzezinski’s Trilateral Commission, where the prescription for maintaining control was outlined in the planned destruction of the US middle class, and the first high level feelers into china implemented those recommendations by paving the way for the mass exodus of US jobs.

It’s appropriate that this is called the Lucifer Effect.  The irony is that much of the 60’s rebellion was a side effect of the CIA’s research and popularization of hallucinogens as a means of mind control.   (See the book “Acid Dreams”)

Anyway, the signs of the rising police state were already present by the mid-90s:!msg/

Welcome to, official web site of The Lucifer Effect: Understanding How Good People Turn Evil (Random House, 2007). In this book, I summarize more than 30 years of research on factors that can create a “perfect storm” which leads good people to engage in evil actions. This transformation of human character is what I call the “Lucifer Effect,” named after God’s favorite angel, Lucifer, who fell from grace and ultimately became Satan.

Rather than providing a religious analysis, however, I offer a psychological account of how ordinary people sometimes turn evil and commit unspeakable acts. As part of this account, The Lucifer Effect tells, for the first time, the full story behind the Stanford Prison Experiment, a now-classic study I conducted in 1971. In that study, normal college students were randomly assigned to play the role of guard or inmate for two weeks in a simulated prison, yet the guards quickly became so brutal that the experiment had to be shut down after only six days.

How and why did this transformation take place, and what does it tell us about recent events such as the Abu Ghraib prisoner abuses in Iraq? Equally important, what does it say about the “nature of human nature,” and what does it suggest about effective ways to prevent such abuses in the future?

Please join me in a journey that the poet Milton might describe as making darkness visible. Although it is often hard to read about evil up close and personal, we must understand its causes in order to contain and transform it through wise decisions and innovative communal actions. Indeed, in my view, there is no more urgent task that faces us today.


Reprise: Operation Tailwind: Pentagon Murdered Deserters in Vietnam

They were not “defectors” they were “deserters”.

From: “Mike Ruppert” <>
Subject: Adm Moorer Deposition Confirms Tailwind Allegations, Incriminates CIA, Kissinger

1200 HRS – JUNE 24, 2000



“From The Wilderness” has obtained the January 17 deposition of retired Joint Chiefs Chairman, Admiral Thomas Moorer taken in connection with a series of civil suits filed in the aftermath of 1997 and 1998 CNN reports relating to a series of 1970 CIA directed missions known as “Tailwind.” Those missions, as originally, and apparently accurately, reported by CNN involved the use of the poison nerve gas Sarin to kill American defectors in Laos. The Moorer deposition not only confirms all of the aspects of the original CNN broadcast, it also suggests that former CNN Producers April Oliver and Jack Smith may have actually understated the extent of Sarin Gas use by U.S. forces under CIA control during the Vietnam war.

On June 7, 1998 CNN aired the “Tailwind” report as a feature news segment on their show “Newsstand.” Reported by CNN veteran Peter Arnett, the stories stated that the CIA connected Studies and Observations Group (SOG), then commanded by CIA veteran and Army General John Singlaub, had used the lethal gas during covert operations into Laos. In particular, the “Tailwind” story reported that American defectors were the intended targets of the attacks. The Tailwind report came eight months after an initial CNN “Impact” report (also produced by Oliver) that featured extensive, lengthy, and highly consistent on-camera quotes from Singlaub regarding similar and related missions during the period. The stories established that the United States had committed acts during the Vietnam era – specifically the use of lethal nerve gas – that would be considered war crimes under current international law. Indeed, the United States has repeatedly bombed civilian and military targets in Iraq in retaliation for Sadam Hussein’s use of the exact same tactics.

In the wake of the June 1998 CNN “Tailwind” story Oliver was sacrificed, crucified, tarred, feathered and fired after enormous pressure was brought to bear on the network and “TIME” magazine by the likes of Henry Kissinger and former Joint Chiefs Chairman Colin Powell. Ted Turner’s stock values were saved. Singluab subsequently sued both Oliver and the network for defamation and slander. He also demanded a public apology and exoneration. Both Singlaub and Moorer denied that they had used the gas or brought it any closer to Southeast Asian operations than the island of Okinawa. Yet, according to admissions made by Moorer near the end of the deposition, as much as 300 pounds of the gas were stored at a secret CIA controlled Thai air/operations base called Nakhorn Phanom or NKP. [The full text of that deposition, as received by FTW, is included as a text file attachment to this bulletin.]

Relying upon several exhibits including official memoranda from the Joint Chiefs bearing classified notations approved by Moorer and meticulously detailed contemporaneous notes from Oliver describing her interviews with both Moorer and Singlaub, Oliver’s attorney Roger Simmons secured a basic admission from Moorer, who served as Joint Chief’s Chairman under Richard Nixon, that the Tailwind missions into Laos were controlled by Henry Kissinger and the CIA, not the Pentagon. This then invalidated Moorer’s original strident assertions that he had controlled SOG missions as JCS Chair and had never authorized the use of Sarin gas or allowed it into the area of operations. Later in the deposition, while reading notes taken by Oliver during her seven hours of interviews with Moorer and later placed in CNN files, Simmons elicited agreement from Moorer that he had made statements to Oliver, and not disputed her findings that: * Military staff near the White House and the National Security Council routinely stole documents from Henry Kissinger’s briefcase so that they could find out what was really going on, * As many as twenty U.S. defectors were targeted for elimination by Special Forces troops assigned to SOG in the Tailwind mission into the Savan region of Laos in 1970, * Sarin gas was employed in the mission, * The mission was successful, * Defectors were a routine “high priority” for execution on all SOG missions inside Laos, * As many as 30 A1E Skyraider pilots at NKP had planes equipped to dispense Sarin gas and that they had authorization to do so on both support and search and rescue missions inside Laos, * Sarin was routinely used in extractions of downed aircrews in hostile conditions, and that * It had been an option for pilots unable to rescue downed US aircrews in Laos before nightfall to dispense Sarin gas on the U.S. aircrews in order to kill them and prevent them from falling into “enemy” hands.

FTW routinely communicates with several Special Forces and CIA veterans of the era. We cannot help but note that these particular areas of Laos were heavily occupied by CIA personnel and CIA mercenaries including Montangard and Hmong tribesmen actively involved in the heroin trade on CIA’s behalf and with CIA protection. In a previous issue of FTW (7/98) we reported at length how and why we believed that evidence existed that CIA ordered the deaths of American POWs to prevent their repatriation and eventual disclosure of CIA criminal activities.

When FTW first learned that the Tailwind cases had been settled we also heard something else, utter silence from the allegedly offended party who screamed bloody murder when the stories first aired – John Singlaub. That suggested to us that April Oliver might have emerged victorious. Inasmuch as additional public vindication was one of the main objectives sought by Singlaub when he sued Oliver, the fact that the settlements deny him that objective only increased our suspicions. Reading the text of Moorer’s deposition then convinced us.

Following the Tailwind stories I had the opportunity to meet with Oliver several times in person and was a guest on a radio talk show program with her. I found her documentation to be meticulous and unassailable. One of the reasons for this was that, as she alleged in her counter suit against both Singlaub and CNN, Singlaub himself had been a confidential source for the story originally. He had violated that confidentiality agreement when he initiated suits against her and CNN. Also, Oliver stated that she had submitted the entire script of the Tailwind segment to Moorer and secured his approval of the script before the broadcast. Moorer admitted to that meeting.

Moorer’s repeated insistence under oath that John Singlaub never lied and that anything he said could always be totally trusted was put to the test when Oliver’s attorney confronted Moorer with his own confirmation of statements made by Singlaub that defectors were a high priority target. A number of people present in the room, including Singlaub, Singlaub’s attorney and what FTW took to be a CIA handler for Moorer named Rudi Gresham, appeared to be caught off-guard by the accurate detail contained in contemporaneous notes taken by Oliver during her interviews with both Moorer and Singlaub. Those notes had been stored, apparently unnoticed, in CNN files after the broadcast.

Also at issue in the suits was CNN’s questionable act of hiring so-called “First Amendment Champion,” attorney Floyd Abrams to represent Oliver without advising her that he was also representing the network. CNN rushed into initial agreements that left Oliver and associates twisting in the breeze while saving Ted Turner’s bacon in the wake of his fawning public apology for a crime his vaunted network never really committed in the first place. CNN regularly uses military satellites for live news feeds and a source inside CNN advised us that the military had threatened to pull the plug if Turner did not kill the stories.

FTW is aware of other cases like that of Los Angeles air freight contractor Irwin Rautenberg who have won suits against the government and the CIA for illegal activities wherein the essential ingredient for settlement was that the victor remain absolutely silent about the victory. The basic rule would be something like, “You can fight City Hall but no one can ever know that you won because then everyone would do it.”

Coverage of the settlements of the lawsuits has apparently been limited to brief stories in the Associated Press and TV Guide. FTW has contacted Oliver on several occasions but she has steadfastly refused to discuss or even hint at the nature of the settlements. However, she has told FTW that her personal life is fine and that – absolutely apart from the settlements – she and her husband have just purchased a new car and are have placed a contract on a six bedroom, five bathroom house in Bethesda, Maryland where her daughter will attend public school.

Having been a guest in April’s current home I can only state that the Oliver family has apparently not suffered as a result of the settlement. Oliver has not disclosed her future plans but FTW wishes her and her family all the best.

Ms Oliver adds that she unequivocally and wholeheartedly stands by her original stories – as she produced them.

Michael C. Ruppert Publisher/Editor From The Wilderness

[The Moorer affidavit is available for download, free of charge, at the web site. Moorer’s stunning revelations begin on page/section 0217.]


Much more here:!searchin/


Spite House: The Last Criminal Act of the War Against Vietnam

Two U.S. marines, both totally loyal to the same beliefs: one is turned into a hunter, and the other into prey. Such a distortion of patriotism would not be credible unless buttressed by hard facts and by the testimony of both men. In 1965, Marine private Robert Garwood, ten days short of the end of his tour, was sent on a mission from which he did not return. Ambushed by the Vietcong, he was held prisoner for fourteen years. In 1979 he escaped and returned to the United States, where he was hastily court-martialed and convicted of collaborating with the enemy. Now at last we learn Garwood’s true story: a harrowing, profoundly moving, fourteen-year struggle to survive and prevail, not only over a cruel and manipulative enemy, but over his own country’s secret efforts to kill him. Part of Colonel Tom McKenney’s job in Vietnam was organizing killer teams to eliminate such “traitors, ” and Garwood became an obsession to him. Only twenty-five years later did he come to the conclusion that Garwood was innocent and, more than that, a hero. Thanks to McKenney’s courageous testimony, and to the author’s fearless pursuit of facts, an injustice is at last set right and the workings of a dreadful secret machinery are laid bare.


US House Votes Overwhelmingly to Move Closer to WWIII

It’s a bill authorizing Obama to supply weapons to the bankrupt Ukrainian Government to exterminate (and/or drive out into neighboring Russia) the people in the areas of Ukraine’s southeast that had voted 90% for the Ukrainian President, Viktor Yanukovych, whom Obama overthrew in a bloody coup in February 2014; but, of course, that’s not how it’s worded. Here is how it’s worded:

Here’s the vote, on December 4th:

Here’s the discussion of it (prior to the vote):

There were 411 votes for the bill, 10 votes against it.

These were the 10 votes against:

California’s George Miller (D)

California’s Dana Rohrabacher (R)

Florida’s Alan Grayson (D)

Florida’s Alcee Hastings (D)

Kentucky’s Thomas Massie (R)

Michigan’s Justin Amash (R)

North Carolina’s Walter Jones (R)

Tennessee’s John Duncan (R)

Texas’s Beto O’Rourke (D)

Washington’s Jim McDermott (D)

Here’s the relevant recent polling on this matter:


Censorship of Malaysian MH-17 Shootdown Over Ukraine Continues

The cause of the shooting-down of the Malaysian passenger plane MH-17 on July 17th (while that plane was flying over the conflict-zone during Ukraine’s civil war) is becoming clearer and clearer, despite the rigorous continuing attempts by Western ‘news’ media to cover it up and to hide from the public the evidence that clearly shows what brought down this airliner.

In the months since I headlined on August 24th the news, “MH-17 ‘Investigation’: Secret August 8th Agreement Seeps Out: Perpetrator of the Downing in Ukraine, of the Malaysian Airliner, Will Stay Hidden,” explaining why the leaders of Western nations want these black-box and other basic data to remain hidden, additional evidence has nonetheless become public, and all of it confirms and adds yet further details to the explanation that was first put forth by the retired German Lufthansa pilot Peter Haisenko, whose independent investigation had concluded that Ukrainian Government fighter-jets intentionally shot down this civilian plane.

Precisely how they did it is gradually becoming clearer, despite this continuation of Western secrecy regarding the contents of the black boxes, and of the U.S. satellite images, and of the Ukrainian air-traffic-control radar recordings, and of other evidence-sources that are held by the West and not made available to their ‘news’ media nor to anyone outside a tight official circle of those Western nations’ intelligence agencies.

Russia has thus been releasing its own investigations regarding MH-17; and, in the process, Russia is not only providing further details as to how the downing actually happened (it wasn’t by mistake, as the West contends it was), but they are also exposing the absurd impossibility of the Ukrainian Government’s ‘explanation’ of this event, which is the ‘explanation’ that is still being parroted unquestioningly and unflinchingly by officials in Washington, Europe, and NATO, and also by Western ‘news’ media. (As my news-report explained, that secret August 8th agreement was signed by the four governments that were handed the black boxes to study — Ukraine, Belgium, Australia, and Netherlands — and it granted to the Ukrainian Government a veto over anything that the team’s official report would say, which is probably the reason why the subsequent officially released report on those black boxes said essentially nothing. It was a brazen insult to the 298 victims’ families.) …..


UK: VIP paedophile ring ‘abused teenage boy INSIDE Buckingham Palace and Balmoral Castle’

A teenage boy working at Buckingham Palace revealed he was groomed and sexually abused by a VIP paedophile ring there.

The lad was also assaulted at the Royal Family’s Scottish retreat Balmoral, according to shocking Home Office files, reports the Sunday People.

In a heartbreaking note, the boy – then just 16 – told how he was the victim of “exploitation of the highest order”.

The chilling claims could now be the subject of a police investigation into ­historic allegations of child sex abuse in the 1970s and 80s – linked to MPs and powerful figures.

The disturbing account was passed directly to the then Home Secretary Leon Brittan but he ruled it was “not practical” to investigate. …


The Golden Trap of Chess Master Vladimir Putin

Accusations of the West towards Putin traditionally are based on the fact that he worked in the KGB. And therefore he is a cruel and immoral person. Putin is blamed for everything. But nobody ever accused Putin of lack of intelligence.

Any accusations against this man only emphasize his ability for quick analytical thinking and making clear and balanced political and economic decisions.

Often Western media compares this ability with the ability of a grandmaster, conducting a public chess simul. Recent developments in US economy and the West in general allow us to conclude that in this part of the assessment of Putin’s personality Western media is absolutely right.

Despite numerous success reports in the style of Fox News and CNN, today, Western economy, led by the United States is in Putin’s trap, the way out of which no one in the West can see or find. And the more the West is trying to escape from this trap, the more stuck it becomes.

What is the truly tragic predicament of the West and the United States, in which they find themselves? And why all the Western media and leading Western economists are silent about this, as a well guarded military secret? Let’s try to understand the essence of current economic events, in the context of the economy, setting aside the factors of morality, ethics and geopolitics.

After realizing its failure in Ukraine, the West, led by the US set out to destroy Russian economy by lowering oil prices, and accordingly gas prices as the main budget sources of export revenue in Russia and the main sources of replenishment of Russian gold reserves.

It should be noted that the main failure of the West in Ukraine is not military or political. But in the actual refusal of Putin to fund the Western project of Ukraine at the expense of the budget of Russian Federation. What makes this Western project not viable in the near and inevitable future.

Last time under president Reagan, such actions of the West’s lowering of oil prices led to ‘success’ and the collapse of USSR. But history does not repeat itself all the time. This time things are different for the West. Putin’s response to the West resembles both chess and judo, when the strength used by the enemy is used against him, but with minimal costs to the strength and resources of the defender. Putin’s real policies are not public. Therefore, Putin’s policy largely has always focused not so much on effect, but on efficiency.

Very few people understand what Putin is doing at the moment. And almost no one understands what he will do in the future.

No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.

Putin is not shouting about it all over the world. And of course, he still accepts US dollars as an intermediate means of payment. But he immediately exchanges all these dollars obtained from the sale of oil and gas for physical gold!  ….

Thus, in exchange for Russian oil, gas and uranium, the West pays Russia with dollars, purchasing power of which is artificially inflated against oil and gold by the efforts of the West. But Putin uses these dollars only to withdraw physical gold from the West in exchange, for the price denominated in US dollars, artificially lowered by the same West.

This truly brilliant economic combination by Putin puts the West led by the United States in a position of a snake, aggressively and diligently devouring its own tail.

The idea of this economic golden trap for the West, probably originated not from Putin himself. Most likely it was the idea of Putin’s Advisor for Economic Affairs – doctor Sergey Glazyev. Otherwise why seemingly not involved in business bureaucrat Glazyev, along with many Russian businessmen, was personally included by Washington on the sanction list?  The idea of an economist, doctor Glazyev was brilliantly executed by Putin, with full endorsement from his Chinese colleague – XI Jinping….

China recently announced that it will cease to increase its gold and currency reserves denominated in US dollars. Considering the growing trade deficit between the US and China (the current difference is five times in favor of China), then this statement translated from the financial language reads: “China stops selling their goods for dollars”. The world’s media chose not to notice this grandest in the recent monetary history event . The issue is not that China literally refuses to sell its goods for US dollars. China, of course, will continue to accept US dollars as an intermediate means of payment for its goods. But, having taken dollars, China will immediately get rid of them and replace with something else in the structure of its gold and currency reserves. Otherwise the statement made by the monetary authorities of China loses its meaning: “We are stopping the increase of our gold and currency reserves, denominated in US dollars.” That is, China will no longer buy United States Treasury bonds for dollars earned from trade with any countries, as they did this before.

Thus, China will replace all the dollars that it will receive for its goods not only from the US but from all over the world with something else not to increase their gold currency reserves, denominated in US dollars. And here is an interesting question: what will China replace all the trade dollars with? What currency or an asset? Analysis of the current monetary policy of China shows that most likely the dollars coming from trade, or a substantial chunk of them, China will quietly replace and de facto is already replacing with Gold.

In this aspect, the solitaire of Russian-Chinese relations is extremely successful for Moscow and Beijing. Russia buys goods from China directly for gold at its current price. While China buys Russian energy resources for gold at its current price. At this Russian-Chinese festival of life there is a place for everything: Chinese goods, Russian energy resources, and gold – as a means of mutual payment. Only US dollar has no place at this festival of life. And this is not surprising. Because the US dollar is not a Chinese product, nor a Russian energy resource. It is only an intermediate financial instrument of settlement – and an unnecessary intermediary. And it is customary to exclude unnecessary intermediaries from the interaction of two independent business partners.

It should be noted separately that the global market for physical gold is extremely small relative to the world market for physical oil supplies. And especially the world market for physical gold is microscopic compared to the entirety of world markets for physical delivery of oil, gas, uranium and goods.

Emphasis on the phrase “physical gold” is made because in exchange for its physical, not ‘paper’ energy resources, Russia is now withdrawing gold from the West, but only in its physical, not paper form. So does China, by acquiring from the West the artificially devalued physical gold as a payment for physical delivery of real products to the West.

The West’s hopes that Russia and China will accept as payment for their energy resources and goods “shitcoin” or so-called “paper gold” of various kinds also did not materialize. Russia and China are only interested in gold and only physical metal as a final means of payment.

For reference: the turnover of the market of paper gold, only of gold futures, is estimated at $360 billion per month. But physical delivery of gold is only for $280 million a month. Which makes the ratio of trade of paper gold versus physical gold: 1000 to 1.

Using the mechanism of active withdrawal from the market of one artificially lowered by the West financial asset (gold) in exchange for another artificially inflated by the West financial asset (USD), Putin has thereby started the countdown to the end of the world hegemony of petrodollar. Thus, Putin has put the West in a deadlock of the absence of any positive economic prospects.

The West can spend as much of its efforts and resources to artificially increase the purchasing power of the dollar, lower oil prices and artificially lower the purchasing power of gold. The problem of the West is that the stocks of physical gold in possession of the West are not unlimited. Therefore, the more the West devalues oil and gold against the US dollar, the faster it loses devaluing Gold from its not infinite reserves.

In this brilliantly played by Putin economic combination the physical gold is rapidly flowing to Russia, China, Brazil, Kazakhstan and India, the BRICS countries, from the reserves of the West. At the current rate of reduction of reserves of physical gold, the West simply does not have the time to do anything against Putin’s Russia until the collapse of the entire Western petrodollar world. In chess the situation in which Putin has put the West, led by the US, is called “time trouble”. …

What the BRICS countries, led by Russia and China, are doing now is actually changing the role and status of the US dollar in the global monetary system. From the ultimate means of payment and asset accumulation, the national currency of the USA, by the joint actions of Moscow and Beijing is turned into only an intermediate means of payment. Intended only to exchange this interim payment for another and the ulimate financial asset – gold. Thus, the US dollar actually loses its role as the ultimate means of payment and asset accumulation, yielding both of those roles to another recognized, denationalized and depoliticized monetary asset – gold.

Traditionally, the West has used two methods to eliminate the threat to the hegemony of petrodollar model in the world and the consequent excessive privileges for the West.

One of these methods – colored revolutions. The second method, which is usually applied by the West, if the first fails – military aggression and bombing.

But in Russia’s case both of these methods are either impossible or unacceptable for the West. …

It’s bad enough to have an imperialist predatory government.  But to have an incompetent imperialist predatory government is just a bit much.    They have bet the house on this one last gamble for world hegemony, and they have lost.  But they expect the rest of us to go down with them and we don’t have to.  If we nationalize the federal reserve and renounce the fraud street scam artists’ empire games we could jettison them to their fate and once again set an example for the world of how to throw off the yoke of a ridiculous inbred aristocracy masquerading as a government.


The Idiotic Economic Theory That’s Causing Governments to Blow Up Their Economies

Inflation is a form of taxation which put the burden of fraudulent debt on the victims instead of the perpetrators.   Banks are counterfeiting operations by nature.  We need to nationalize the monetary system and force the banks to pay interest on the  money they’ve created out of thin air, since they are in effect loans from the government.  Doing so would force banks to act as middlemen between savers and borrowers, which is what most people thought they were already doing.  Except the government is already controlled by the banks.  Sigh.

No, We CAN’T Inflate Our Way Out of a Debt Trap

Top mainstream economists have pushed the theory that we can inflate our way out of a debt crisis.

Ben Bernanke and Paul Krugman said in 2009 that we should force inflation on the economy. University of Oregon economics professor Tim Duy said the U.S. will try to inflate its way out of debt.

Warren Buffet argued:

A country that continuously expands its debt as a percentage of GDP and raises much of the money abroad to finance that, at some point, it’s going to inflate its way out of the burden of that debt.

A top advisor to the French President said that the United States was “flooding the world with liquidity” to try to inflate away its debt.

This isn’t old news … it’s ongoing policy.  Just last year, Paul Krugman praised Japanese leader Abe for trying to inflate away Japan’s debt:

Enter Mr. Abe, who has been pressuring the Bank of Japan into seeking higher inflation — in effect, helping to inflate away part of the government’s debt — and has also just announced a large new program of fiscal stimulus. How have the market gods responded?

The answer is, it’s all good. Market measures of expected inflation, which were negative not long ago — the market was expecting deflation to continue — have now moved well into positive territory. But government borrowing costs have hardly changed at all; given the prospect of moderate inflation, this means that Japan’s fiscal outlook has actually improved sharply. True, the foreign-exchange value of the yen has fallen considerably — but that’s actually very good news, and Japanese exporters are cheering.

In short, Mr. Abe has thumbed his nose at orthodoxy, with excellent results.

Sadly, the results aren’t so excellent for Japan. And quantitative easing – the mechanism with which central banks have tried to create inflation – could be backfiring.

Indeed, the whole idea that we can inflate our way out of debt trap is fatally flawed …

UBS economist Paul Donovan shows that governments can’t inflate their way out of debt traps:

The problem with the idea of governments inflating their way out of a debt burden is that it does not work. Absent episodes of hyper-inflation, it is a strategy that has never worked.

Megan McArdle points out:

It is a commonplace on the right that we’re going to have enormous inflation, not because Ben Bernanke will make an error in the timing of withdrawing liquidity, but because the government is going to try to print its way out of all this debt.

Joe Weisenthal notes that it doesn’t quite work this way:

As this chart shows, instances of declining debt-to-GDP rarely coincide with periods of inflation. If it did If it did, we’d see more dots in the lower right-hand quadrant.

The bad news for central bankers is that creating currency isn’t like, say, diluting shareholders in a company. You’re always rolling your debt, and the market’s response to an inflationary strategy is (not surprisingly) higher interest rates. It’s a treadmill, and it’s extremely hard to get ahead.

Inflating your way out of debt works if you’re planning to run a pretty sizeable budget surplus–big enough that you won’t have to roll your debt over. Otherwise, your debt starts to march upward even faster, as old notes come due, and you have to roll them at ruinous interest rates. Hyperinflation might wipe out that debt, but also your tax base. ….


US Military’s Training of Mexican Security Forces Continues as Human-Rights Abuses Mount in Mexico

The U.S. government has spent more than $62 million since fiscal year 2010 providing highly specialized training to Mexican security forces, including some $16.3 million in fiscal 2013, as part of an effort to help Mexico better prosecute its war on drugs, records made public under the U.S. Foreign Assistance Act show.

The spending has continued even as Mexico’s military and police forces continue to face accusations of pervasive human-rights abuses committed against Mexican citizens, leading some experts to question whether the U.S.-funded training is resulting in some deadly unintended consequences.

The news of the disappearance in late September of 43 students who attended a rural teachers college in Ayotzinapa, located in the southern Mexican state of Guerrero, has sparked massive protests in Mexico. The students were allegedly turned over to a criminal gang after being abducted by Mexican police and they remain missing. The police fired on the three buses transporting the students along a stretch of road near Iguala, about 130 kilometers north of Ayotiznapa, and the abduction was carried out near a Mexican military base, according to Human Rights Watch.

The Ayotzinapa incident was preceded by a lesser-known attack this past June during which Mexican soldiers killed 22 people inside a warehouse in Tlatlaya, 238 kilometers southwest of Mexico City. At least 12 of those homicides were deemed extrajudicial executions, according to Mexico’s National Human Rights Commission[CNDH in its Spanish initials].

Last year, the Mexican government conceded that at least 26,000 people had gone missing, or been disappeared, in Mexico since 2006 — the year the war on the “cartels” in that nation was launched. Over that same period, INEGI (the Mexican State Statistics Agency) reports, there were some 155,000 homicides in Mexico, most with a nexus to the drug war.

The U.S. Department of Defense insists that the relationship it has with Mexican security forces is based on “trust and confidence and mutual respect” and is critical to helping to reduce the violence sparked by criminal organizations in Mexico. …

They have to keep lying.  They’ve been training and financing death squads south of the border since the 1960’s and they aren’t going to stop now.  There’s too much money to be made off slave labor and drug running.