The Deteriorating Economic Outlook

This article originally appeared on PaulCraigRoberts.org.

The third and final estimate (until the annual gross domestic product revisions) of first quarter 2014 real GDP growth released June 25 by the U.S. Bureau of Economic Analysis was a 2.9 percent contraction in GDP growth, a 5.5 percentage point difference from the January forecast of 2.6 percent growth. Apparently, the first quarter contraction was dismissed by those speculating in equities as weather related, as stock averages rose with the bad news.

Stock market participants might be in for a second quarter surprise. The result of many years of changes made to the official inflation measures is a substantially understated inflation rate. John Williams (www.shadowstats.com) provides inflation estimates based on previous official methodology, when the Consumer Price Index still represented the cost of a constant standard of living. The 1.26 percent inflation measure used to deflate first quarter nominal GDP is unrealistic, as Americans who make purchases are aware.

Professor Francis Boyle On Impeachment Of Bush And Obama

This article originally appeared on PaulCraigRoberts.org.

As Democratic Representative Nancy Pelosi, the richest Representative of the 1 percent in the House of Representatives, said: “Impeachment is off the table.” Nevertheless, insouciant Californians still send the bought-and paid-for hireling to Washington.

In my day, if an experienced professor of international and Constitutional law such as University of Illinois Professor Francis A. Boyle called for impeachment of a President, it was a serious situation for the President. But no more. Today, an American President can ride roughshod over Constitutional lawyers, the U.S. Constitution and U.S. statutory law without any danger of impeachment. To avoid impeachment today, all a President has to do is to avoid having a sexual affair with a White House intern in the Oval Office, or is that the Oral Orifice.

More Phantom Jobs Created — All In The Wrong Places

This article originally appeared on PaulCraigRoberts.org.

Last April, I saw a report that 83 percent of May’s college graduates did not have a job. I remarked that in my day most of us had two or three job or graduate school offers before we graduated. The latest payroll jobs report issued on June 6 proves that the April report was true.

My opinion, schooled in part by John Williams’ very precise reports on Shadowstats.com, is that on average about half of the new jobs each month are phantom jobs created by the birth-death model and inappropriate seasonal adjustments. So I figured that the 217,000 jobs claimed for May are more like 108,000. Then I read Williams’ report on the May jobs number: “Monthly payroll gains overstated by 200,000 plus jobs.”

In other words, there were zero new jobs in May.

Paul Craig Roberts: U.S. Economy Is A House Of Cards

The U.S. economy is a house of cards. Every aspect of it is fraudulent, and the illusion of recovery is created with fraudulent statistics.

American capitalism itself is an illusion. All financial markets are rigged. Massive liquidity poured into financial markets by the Federal Reserve’s quantitative easing inflates stock and bond prices and drives interest rates, which are supposed to be a measure of the cost of capital, to zero or negative, with the implication that capital is so abundant that its cost is zero and can be had for free. Large enterprises, such as mega-banks and auto manufacturers, that go bankrupt are not permitted to fail. Instead, public debt and money creation are used to cover private losses and keep corporations “too big to fail” afloat at the expense not of shareholders but of people who do not own the shares of the corporations.

Crisis With Russia Moving Closer To War

The Obama regime, wallowing in hubris and arrogance, has recklessly escalated the Ukrainian crisis into a crisis with Russia. Whether intentionally or stupidly, Washington’s propagandistic lies are driving the crisis to war. Unwilling to listen to any more of Washington’s senseless threats, Moscow no longer accepts telephone calls from Obama and U.S. top officials.

cold war pic

The crisis in Ukraine originated with Washington’s overthrow of the elected democratic government and its replacement with Washington’s hand-chosen stooges. The stooges proceeded to act in word and deed against the populations in the former Russian territories that Soviet Communist Party leaders had attached to Ukraine. The consequence of this foolish policy is agitation on the part of the Russian speaking populations to return to Russia. Crimea has already rejoined Russia, and eastern Ukraine and other parts of southern Ukraine are likely to follow.

How Much War Does Washington Want?

“America does not at the moment have a functioning democracy.” — Former President Jimmy Carter

I doubt that the Ukraine crisis precipitated by Washington’s overthrow of the democratic government is over. Washington has won the propaganda war everywhere outside of Russia and Ukraine itself. Within Ukraine people are aware that the coup has made them worse off. Crimea has already separated from the U.S. puppet government in Kiev and rejoined Russia. Other parts of Russian Ukraine could follow.

In Kiev itself where the unelected, imposed-by-Washington dictatorial government resides, extreme right-wing Ukrainian nationalists, whose roots go back to fighting for National Socialist Germany, are at work intimidating public prosecutors, media editors and the U.S.-imposed “government” itself. There is an abundance of videos available on the Internet, some made by the extreme nationalists themselves, that clearly reveal the intimidation of the imposed and unelected government installed by Washington.

U.S. And EU Are Paying Ukrainian Rioters And Protesters

A number of confirmations have come in from readers that Washington is fueling the violent protests in Ukraine with our taxpayer dollars. Washington has no money for food stamps or to prevent home foreclosures, but it has plenty of money with which to subvert Ukraine.

One reader wrote: “My wife, who is of Ukrainian nationality, has weekly contact to her parents and friends in Zhytomyr [NW Ukraine]. According to them, most protesters get an average payment of 200-300 grivna, corresponding to about 15-25 euro. As I additionally heard, one of the most active agencies and ‘payment outlets’ on EU side is the German ‘Konrad Adenauer Stiftung’, being closely connected to the CDU, i.e. Mrs. Merkel’s party.”