Monday, January 9, 2017

Against The Tyranny Of The So-Called Experts

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Submitted by Kurt Schlichter via Townhall.com,

America’s elite – that collection of puffed up mediocrities who until recently held the undisputed command of the heights of our politics and culture – is in crisis. Its unbroken track record of failure has finally stirred the rest of America from its coma. The normals are now hella woke, and the elitists are being hella rejected. Unused to accountability, the elite is in a tizzy over the way people are not only blaming it for its myriad failures but are taking concrete steps to restrict its power. It’s not just electing Donald Trump. It’s ignoring the media, ignoring Hollywood stars, and ignoring the cabal of “experts” who presume to tell us how to live.

And it’s about time.

The best thing about being a member of the elite is that you really don’t have to do anything to become one. You can be born one – no matter how dumb or drug-addled you are, if you’re a Kennedy you’re elite regardless of how many times you blow the bar exam. Or you can become one by getting into the right school – remember, a Harvard degree does not mean you did well at Harvard. Everyone at Harvard does well – an “A” is a participation trophy. It’s getting in that matters, and getting in depends, in significant part, on who you are. Elite mom and dad, welcome to the Ivy League.

The elites, having been called out for their failure, are now trying to rebrand themselves as “experts.” It’s important to distinguish “elites” from “experts.” Elites want to be seen as experts because an expert is assumed to actually know something and to have some sort of technical skill. To be elite, you just have to be accepted as elite. That’s why elitists fudge the terms; they want the credibility of being experts without actually having to do what a real expert does.

Take, for example, the notorious New Yorker cartoon of the passenger on the plane electing himself pilot. The point, which the elitists think is brilliant, is that the running of government should be left to the experts without the participation of you people. Of course, pilots are trained in detailed technical skills and, critically, are accountable for their performance. If they fail, they get fired – or worse. [Insert Kennedy pilot joke here] If an elitist fails at an important job, she gets nominated for president. See the difference?

The point they want to make is that we should submit to their “expert” (really, elite) guidance, since we are unfit to determine our own destiny. Yet, when piloting this country over the last couple decades, these elites have flown the plane straight into the ground. Real experts are held accountable, but elites never are. Their landing is always soft – it’s never the elites who suffer while the normal prosper, only the other way around. The elitists always win – that’s why they are called “elite.”

Remember, whenever anyone tells you to blindly give up your input and rely on an “expert,” you stand a good chance of being scammed. Take a doctor. Doctors have a hard skill. They go through a lot of training. And medical malpractice kills about 98,000 people per year. Doctors are experts, but they are not perfect. No expert is. Nor are they perfectly disinterested technicians. A lot of doctors are terrible people – the worst divorces lawyers deal with are doctor divorces. Don’t confuse expertise with morality.

Like all humans, experts are self-interested. That’s why some doctors complain when their patients read up on their symptoms in Google. “Gosh, these peons are presuming to gain access to my secret knowledge – how dare they!” Yes – thanks to technology, much of what doctors do (which is maintain and use knowledge – many never touch a scalpel) can be done by normals on line. You have a symptom and you go to Web MD and often it answers your question – “Eww, that weird lump is a sebaceous cyst, not melanoma.”

The same with lawyers – go to LegalZoom to create your routine limited liability company and you’ll do it for a third of the price of the lawyer who merely changes the names on the last routine limited liability company formation documents he prepared. Trying a case is different – you probably want a technical expert who has done it before. But a lot of legal knowledge is not only accessible but employable by regular citizens; the laws restricting the practice of law to those with a license may protect some people from harm, but it also ensures we lawyers can restrict supply and thus justify our outrageous fees. Remember, a lot of “expertise” is not skill derived from experience but merely access to information. And when everyone has that access, well, the guilds get really protective of their turf.

The expert technocracy model of governance also depends on the underlying assumption of a disinterested, objective technician class that will protect others’ interests before its own. But the notion that a particular expert is disinterested and somehow only concerned with objective facts is simply silly. As a trial lawyer, I absolutely know the other side is always going to hire some “expert” to say exactly what needs to be said to help its case. We litigators regularly refer to experts as “whores” – it’s just assumed. Now, smart lawyers try to get honest experts – I’d much prefer to hear early that my client’s case has problems. But there are surprisingly few smart lawyers – again, simply because you are in an expert caste does not mean you are not a half-wit.

The simple fact is that when people push for government by expert, the experts they want running things will always – every single time – happen to have exactly the same policy preferences as the people pushing them. “Leave climate science to the experts!” Yeah, and in a shocking turn of events, the experts we are supposed to defer to feel the solution to climate change is to give more money and power to the people demanding “Leave climate science to the experts!”

And then there’s the problem of incompetent experts. This is especially true in the media, where the internet has made the journalistic gatekeeper model obsolete. These hacks are panicking, and trying to claw back their authority by labeling dissent “fake news” – that is, when they aren’t themselves publishing outright lies and propaganda they imagine we’ll buy into. Talk about, as Peggy Noonan aptly put it, being patronized by our inferiors.

You would think that if you presumed to tell the rest of us what to think that you might first ensure that you actually know stuff. But then, being elite means never having to actually accomplish anything, like knowing stuff. For example, Judd Legum, a senior apparatchik at ThinkProgress.org – the popular leftist political site best known for stuffing two questionable assertions into one web address – went on with Hugh Hewitt, who asked him a series of pretty basic questions about government and foreign policy. Well, it was pretty ugly. What he didn’t know was … extensive. I’d liken the segment to the Bataan Death March but Judd would probably not get the reference. He’ll have to check Wikipedia, just like everyone else. But then, if everyone else can do what Judd does, why do we need him and his ilk?

Experts aren’t what they used to be – that is, experts. “Experts” tell us that by an act of sheer desire, Dave can transform into Diane. That’s crazy. We try to outsource our moral judgment to “ethics experts” and end up with nutballs telling us infanticide is cool. The experts told us how there was an ice age coming. Then acid rain. Then ozone depletion. Then global warming. Then, when it didn’t actually get warmer, global climate change. Yet, somehow we are expected not to notice this litany of wrong and to just submit to the guidance of people who are literally never right.

Sure, if I had a brain tumor, I’d want a skilled neurosurgeon to take it out – though note how Dr. Ben Carson’s demonstrated track record of competence at that hard skill has earned him zero respect from the left, demonstrating that their alleged regard for expertise is simply another scam. But while I would rely on my doc for the technical work of cutting and slicing, his expertise does not apply to the other key issues involved – like whether I want to accept the consequences of the surgery on my quality of life. Questions that relate to our preferences and morals are not the province of experts. Nor should decisions regarding the principles and policies of our government be delegated to the technical experts charged with carrying them out.

We are American citizens. We can decide for ourselves what kind of nation we want to live in. That’s our decision. Experts? Well, you can provide advice, and then you can carry out our instructions. But don’t presume to do any more than that. You work for us, not vice versa.



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Glenn Greenwald Blasts "Fake News" Peddling Washington Post For Lack Of "Basic Journalistic Skepticism"

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Appearing on the Tucker Carlson show on Fox News recently, Glenn Greenwald, co-founding editor of The Intercept, took direct aim at the "intelligence community" and the Washington Post for recklessly spreading the "Russian Hacking" narrative without providing a single piece of tangible evidence to support their claims. 

The ever skeptical Greenwald started by lambasting the Washington Post for their admittedly "fake news" story on Russian efforts to hack the Vermont electricity grid.  Of course, as we previously pointed out, the entire story turned out to be completely fabricated by an overzealous Washington Post looking to perpetuate the "Russian Hacking" narrative at all costs, including whatever is left of their own credibility.  Greenwald described the epic collapse of the story as the "grandest humiliation possible" for the Washington Post.

"Essentially the entire article from start to finish. They have the this big blockbuster announcement on Friday which was obviously sensationalistic and it would have a huge impact if it were true that Russia and Vladimir Putin had invaded the U.S. electric grid by placing malware within the utility system in Vermont."

 

"They induced the governor of Vermont and Senator Pat Leahy (D-VT) to make these really bombastic statements about how this thug Vladimir Putin was trying to steal the heat to make Vermonters suffer during the winter. It turned out that the malware found was actually on a single laptop totally unconnected to the grid. Then it turned out that the Russians had actually nothing to do with this malware. Then it turned out that what was on the laptop probably wasn't malware at all. So the story just collapsed one step after the next in the grandest humiliation possible."

Meanwhile, Greenwald goes on to point out, as we did late last week, that the latest "Intel Report" from the "Intelligence Community" was nothing more than a repeat of their previous allegations, which were and continue to be, "completely unaccompanied by evidence."

"The report that came out today was just another set of repackaged conclusions from the intelligence community, which may or may not be true, that were again completely unaccompanied by evidence.  And when you simply point that out, that the intelligence community keeps just repeating itself over and over...without providing evidence that can be evaluated whether or not it's true, that means you must love Vladimir Putin, that you're probably working for the Kremlin, when, in fact, it's just the basic kind of skepticism that all journalists should be exercising."

 

"We shouldn't accept government claims unless we see evidence that it's true.  Particularly, when the consequences are so grave.  You have John McCain saying Russia has engaged in a act of war, Nancy Pelosi is accusing journalists of being accomplices of Russia who reported on the story.  Which is basically every media outlet in the country.  These are really serious charges and we should see evidence for that."

With that, here is the full interview with Tucker Carlson for your viewing pleasure:



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Sunday, January 8, 2017

The CIA & The Media: 50 facts The World Should Know

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James F. Tracy is a PhD from the University of Iowa. A former professor of communications at Boca Raton, Florida Atlantic University . He is one of many critical thinkers within the world of academia, and as result of presenting information that might spark some cognitive dissonance, has been singled out due to his activism efforts.  For example, he was fired from his tenured professorship at Florida Atlantic University for questioning official narratives of terror events. Now, his Blog (linked below), has been taken down by WordPress with no clear explanation.
You can listen to what he has to say on the matter here.

You can support the James Tracy Legal Defense Fund, and find out about what is going on with him at the moment HERE. He made national headlines, as many academics who are not afraid to stand up for truth do, in an attempt to ridicule them. 

 

He is well research, and now reports on several different matters of escalating importance. Below is an article he wrote in August of 2015, and is relevant today given all of the “fake news” campaigns that have been directed against alternative media.
It’s a great article, and a very informative and important piece full of facts that the world should be made aware of.

Original source of this article is Memory Hole

Copyright © James F. Tracy, Memory Hole, 2016, obtained from Globalresearch.ca

Since the end of World War Two the Central Intelligence Agency has been a major force in US and foreign news media, exerting considerable influence over what the public sees, hears and reads on a regular basis. CIA publicists and journalists alike will assert they have few, if any, relationships, yet the seldom acknowledged history of their intimate collaboration indicates a far different story–indeed, one that media historians are reluctant to examine.

When seriously practiced, the journalistic profession involves gathering information concerning individuals, locales, events, and issues. In theory such information informs people about their world, thereby strengthening “democracy.” This is exactly the reason why news organizations and individual journalists are tapped as assets by intelligence agencies and, as the experiences of German journalist Udo Ulfkotte (entry 47 below) suggest, this practice is at least as widespread today as it was at the height of the Cold War.

Consider the coverups of election fraud in 2000 and 2004, the events of September 11, 2001, the invasions Afghanistan and Iraq, the destabilization of Syria, and the creation of “ISIS.” These are among the most significant events in recent world history, and yet they are also those much of the American public is wholly ignorant of. In an era where information and communication technologies are ubiquitous, prompting many to harbor the illusion of being well-informed, one must ask why this condition persists.

Further, why do prominent US journalists routinely fail to question other deep events that shape America’s tragic history over the past half century, such as the political assassinations of the 1960s, or the central role played by the CIA major role in international drug trafficking?

Popular and academic commentators have suggested various reasons for the almost universal failure of mainstream journalism in these areas, including newsroom sociology, advertising pressure, monopoly ownership, news organizations’ heavy reliance on “official” sources, and journalists’ simple quest for career advancement. There is also, no doubt, the influence of professional public relations maneuvers. Yet such a broad conspiracy of silence suggests another province of deception examined far too infrequently—specifically the CIA and similar intelligence agencies’ continued involvement in the news media to mold thought and opinion in ways scarcely imagined by the lay public.

The following historical and contemporary facts–by no means exhaustive–provides a glimpse of how the power such entities possess to influence if not determine popular memory and what respectable institutions deem to be the historical record.

The CIA’s Operation MOCKINGBIRD is a long-recognised keystone among researchers pointing to the Agency’s clear interest in and relationship to major US news media. MOCKINGBIRD grew out of the CIA’s forerunner, the Office for Strategic Services (OSS, 1942-47), which during World War Two had established a network of journalists and psychological warfare experts operating primarily in the European theatre.

Many of the relationships forged under OSS auspices were carried over into the postwar era through a State Department-run organization called the Office of Policy Coordination (OPC) overseen by OSS staffer Frank Wisner.

The OPC “became the fastest-growing unit within the nascent CIA,” historian Lisa Pease observes, “rising in personnel from 302 in 1949 to 2,812 in 1952, along with 3,142 overseas contract personnel. In the same period, the budget rose from $4.7 million to $82 million.” Lisa Pease, “The Media and the Assassination,” in James DiEugenio and Lisa Pease, The Assassinations: Probe Magazine on JFK, MLK, RFK and Malcolm X, Port Townsend, WA, 2003, 300.

Like many career CIA officers, eventual CIA Director/Director of Central Intelligence (DCI) Richard Helms was recruited out of the press corps by his own supervisor at the United Press International’s Berlin Bureau to join in the OSS’s fledgling “black propaganda” program. “‘[Y]ou’re a natural,” Helms’ boss remarked. Richard Helms, A Look Over My Shoulder: A Life in the Central Intelligence Agency, New York: Random House, 2003, 30-31.

Wisner tapped Marshall Plan funds to pay for his division’s early exploits, money his branch referred to as “candy.” “We couldn’t spend it all,” CIA agent Gilbert Greenway recalls. “I remember once meeting with Wisner and the comptroller. My God, I said, how can we spend that? There were no limits, and nobody had to account for it. It was amazing.” Frances Stonor Saunders, The Cultural Cold War: The CIA and the World of Arts and Letters, New York: The New Press, 2000, 105.

When the OPC was merged with the Office of Special Operations in 1948 to create the CIA, OPC’s media assets were likewise absorbed.

Wisner maintained the top secret “Propaganda Assets Inventory,” better known as “Wisner’s Wurlitzer”—a virtual rolodex of over 800 news and information entities prepared to play whatever tune Wisner chose. “The network included journalists, columnists, book publishers, editors, entire organizations such as Radio Free Europe, and stringers across multiple news organizations.” Pease, “The Media and the Assassination,” 300.

A few years after Wisner’s operation was up-and-running he “’owned’ respected members of the New York Times, Newsweek, CBS, and other communication vehicles, plus stringers, four to six hundred in all, according to a CIA analyst. Each one was a separate ‘operation,’” investigative journalist Deborah Davis notes, “requiring a code name, a field supervisor, and a field office, at an annual cost of tens or hundreds of thousands of dollars—there has never been an accurate accounting.” Deborah Davis, Katharine the Great: Katharine Graham and the Washington Post, Second Edition, Bethesda MD: National Press Inc, 1987, 139.

Psychological operations in the form of journalism were perceived as necessary to influence and direct mass opinion, as well as elite perspectives. “[T]he President of the United States, the Secretary of State, Congressmen and even the Director of the CIA himself will read, believe, and be impressed by a report from Cy Sulzberger, Arnaud de Borchgrave, or Stewart Alsop when they don’t even bother to read a CIA report on the same subject,” noted CIA agent Miles Copeland. Cited in Pease, “The Media and the Assassination,” 301.

By the mid-to-late 1950s, Darrell Garwood points out, the Agency sought to limit criticism directed against covert activity and bypass congressional oversight or potential judicial interference by “infiltrat[ing] the groves of academia, the missionary corps, the editorial boards of influential journal and book publishers, and any other quarters where public attitudes could be effectively influenced.” Darrell Garwood, Under Cover: Thirty-Five Years of CIA Deception, New York: Grove Press, 1985, 250.

The CIA frequently intercedes in editorial decision-making. For example, when the Agency proceeded to wage an overthrow of the Arbenz regime in Guatemala in 1954, Allen and John Foster Dulles, President Eisenhower’s Secretary of State and CIA Director respectively, called upon New York Times publisher Arthur Hays Sulzberger to reassign reporter Sydney Gruson from Guatemala to Mexico City. Sulzberger thus placed Gruson in Mexico City with the rationale that some repercussions from the revolution might be felt in Mexico. Pease, “The Media and the Assassination,” 302.

Since the early 1950s the CIA “has secretly bankrolled numerous foreign press services, periodicals and newspapers—both English and foreign language—which provided excellent cover for CIA operatives,” Carl Bernstein reported in 1977. “One such publication was the Rome Daily American, forty percent of which was owned by the CIA until the 1970s.” Carl Bernstein, “The CIA and the Media,” Rolling Stone, October 20, 1977.

The CIA exercised informal liaisons with news media executives, in contrast to its relationships with salaried reporters and stringers, “who were much more subject to direction from the Agency” according to Bernstein. “A few executives—Arthur Hays Sulzberger of the New York Times among them—signed secrecy agreements. But such formal understandings were rare: relationships between Agency officials and media executives were usually social—’The P and Q Street axis in Georgetown,’ said one source. ‘You don’t tell William Paley to sign a piece of paper saying he won’t fink.’” Director of CBS William Paley’s personal “friendship with CIA Director Dulles is now known to have been one of the most influential and significant in the communications industry,” author Debora Davis explains. “He provided cover for CIA agents, supplied out-takes of news film, permitted the debriefing of reporters, and in many ways set the standard for the cooperation between the CIA and major broadcast companies which lasted until the mid-1970s.” Deborah Davis, Katharine the Great: Katharine Graham and the Washington Post, Second Edition, Bethesda MD: National Press Inc, 1987, 175.

“The Agency’s relationship with the Times was by far its most valuable among newspapers, according to CIA officials,” Bernstein points out in his key 1977 article. “From 1950 to 1966, about ten CIA employees were provided Times cover under arrangements approved by the newspaper’s late publisher, Arthur Hays Sulzberger. The cover arrangements were part of a general Times policy—set by Sulzberger—to provide assistance to the CIA whenever possible.” In addition, Sulzberger was a close friend of CIA Director Allen Dulles. “’At that level of contact it was the mighty talking to the mighty,’ said a high‑level CIA official who was present at some of the discussions. ‘There was an agreement in principle that, yes indeed, we would help each other. The question of cover came up on several occasions. It was agreed that the actual arrangements would be handled by subordinates…. The mighty didn’t want to know the specifics; they wanted plausible deniability.’” Bernstein, “The CIA and the Media.”

CBS’s Paley worked reciprocally with the CIA, allowing the Agency to utilize network resources and personnel. “It was a form of assistance that a number of wealthy persons are now generally known to have rendered the CIA through their private interests,” veteran broadcast journalist Daniel Schorr wrote in 1977. “It suggested to me, however, that a relationship of confidence and trust had existed between him and the agency.” Schorr points to “clues indicating that CBS had been infiltrated.” For example, “A news editor remembered the CIA officer who used to come to the radio control room in New York in the early morning, and, with the permission of persons unknown, listened to CBS correspondents around the world recording their ‘spots’ for the ‘World News Roundup’ and discussing events with the editor on duty. Sam Jaffe claimed that when he applied in 1955 for a job with CBS, a CIA officer told him that he would be hired–which he subsequently was. He was told that he would be sent to Moscow–which he subsequently was; he was assigned in 1960 to cover the trial of U-2 pilot Francis Gary Powers. [Richard] Salant told me,” Schorr continues, “that when he first became president of CBS News in 1961, a CIA case officer called saying he wanted to continue the ‘long standing relationship known to Paley and [CBS president Frank] Stanton, but Salant was told by Stanton there was no obligation that he knew of” (276). Schorr, Daniel. Clearing the Air, Boston: Houghton Mifflin, 1977, 277, 276.

National Enquirer publisher Gene Pope Jr. worked briefly on the CIA’s Italy desk in the early 1950s and maintained close ties with the Agency thereafter. Pope refrained from publishing dozens of stories with “details of CIA kidnappings and murders, enough stuff for a year’s worth of headlines” in order to “collect chits, IOUs,” Pope’s son writes. “He figured he’d never know when he might need them, and those IOUs would come in handy when he got to 20 million circulation. When that happened, he’d have the voice to be almost his own branch of government and would need the cover.” Paul David Pope, The Deeds of My Fathers: How My Grandfather and Father Built New York and Created the Tabloid World of Today, New York: Phillip Turner/Rowman & Littlefield, 2010, 309,

One explosive story Pope’s National Enquirer‘s refrained from publishing in the late 1970s centered on excerpts from a long-sought after diary of President Kennedy’s lover, Mary Pinchot Meyer, who was murdered on October 12, 1964. “The reporters who wrote the story were even able to place James Jesus Angleton, the CIA’s head of counterintelligence operations, at the scene.” Another potential story drew on “documents proving that [Howard] Hughes and the CIA had been connected for years and that the CIA was giving Hughes money to secretly fund, with campaign donations, twenty-seven congressmen and senators who sat on sub-committees critical to the agency. There are also fifty-three international companies named and sourced as CIA fronts .. and even a list of reporters for mainstream media organizations who were playing ball with the agency.” Pope, The Deeds of My Fathers, 309.

Angleton, who oversaw the Agency counterintelligence branch for 25 years, “ran a completely independent group entirely separate cadre of journalist‑operatives who performed sensitive and frequently dangerous assignments; little is known about this group for the simple reason that Angleton deliberately kept only the vaguest of files.” Bernstein, “The CIA and the Media.”

The CIA conducted a “formal training program” during the 1950s for the sole purpose of instructing its agents to function as newsmen. “Intelligence officers were ‘taught to make noises like reporters,’ explained a high CIA official, and were then placed in major news organizations with help from management. These were the guys who went through the ranks and were told ‘You’re going to he a journalist,’” the CIA official said.” The Agency’s preference, however, was to engage journalists who were already established in the industry. Bernstein, “The CIA and the Media.”

Newspaper columnists and broadcast journalists with household names have been known to maintain close ties with the Agency. “There are perhaps a dozen well known columnists and broadcast commentators whose relationships with the CIA go far beyond those normally maintained between reporters and their sources,” Bernstein maintains. “They are referred to at the Agency as ‘known assets’ and can be counted on to perform a variety of undercover tasks; they are considered receptive to the Agency’s point of view on various subjects.” Bernstein, “The CIA and the Media.”

Frank Wisner, Allen Dulles, and Washington Post publisher Phillip Graham were close associates, and the Post developed into one of the most influential news organs in the United States due to its ties with the CIA. The Post managers’ “individual relations with intelligence had in fact been the reason the Post Company had grown as fast as it did after the war,” Davis (172) observes. “[T]heir secrets were its corporate secrets, beginning with MOCKINGBIRD. Phillip Graham’s commitment to intelligence had given his friends Frank Wisner an interest in helping to make the Washington Post the dominant news vehicle in Washington, which they had done by assisting with its two most crucial acquisitions, the Times-Herald and WTOP radio and television stations.” Davis, Katharine the Great: Katharine Graham and the Washington Post, 172.

In the wake of World War One the Woodrow Wilson administration placed journalist and author Walter Lippmann in charge of recruiting agents for the Inquiry, a first-of-its-kind ultra-secret civilian intelligence organization whose role involved ascertaining information to prepare Wilson for the peace negotiations, as well as identify foreign natural resources for Wall Street speculators and oil companies. The activities of this organization served as a prototype for the function eventually performed by the CIA, namely “planning, collecting, digesting, and editing the raw data,” notes historian Servando Gonzalez. “This roughly corresponds to the CIA’s intelligence cycle: planning and direction, collection, processing, production and analysis, and dissemination.” Most Inquiry members would later become members of the Council on Foreign Relations. Lippmann would go on to become the Washington Post’s best known columnists. Servando Gonzalez, Psychological Warfare and the New World Order: The Secret War Against the American People, Oakland, CA: Spooks Books, 2010, 50.

The two most prominent US newsweeklies, Time and Newsweek, kept close ties with the CIA. “Agency files contain written agreements with former foreign correspondents and stringers for both the weekly newsmagazines,” according to Carl Bernstein. “Allen Dulles often interceded with his good friend, the late Henry Luce, founder of Time and Life magazines, who readily allowed certain members of his staff to work for the Agency and agreed to provide jobs and credentials for other CIA operatives who lacked journalistic experience.”  Bernstein, “The CIA and the Media.”

In his autobiography former CIA officer E. Howard Hunt quotes Bernstein’s “The CIA and the Media” article at length. “I know nothing to contradict this report,” Hunt declares, suggesting the investigative journalist of Watergate fame didn’t go far enough. “Bernstein further identified some of the country’s top media executives as being valuable assets to the agency … But the list of organizations that cooperated with the agency was a veritable ‘Who’s Who’ of the media industry, including ABC, NBC, the Associated Press, UPI, Reuters, Hearst Newspapers, Scripps-Howard, Newsweek magazine, and others.” E. Howard Hunt, American Spy: My Secret History in the CIA, Watergate, and Beyond, Hoboken NJ: John Wiley & Sons, 2007, 150.

When the first major exposé of the CIA emerged in 1964 with the publication of The Invisible Government by journalists David Wise and Thomas B. Ross, the CIA considered purchasing the entire printing to keep the book from the public, yet in the end judged against it. “To an extent that is only beginning to be perceived, this shadow government is shaping the lives of 190,000,000 Americans” authors Wise and Ross write in the book’s preamble. “Major decisions involving peace and war are taking place out of public view. An informed citizen might come to suspect that the foreign policy of the United States often works publicly in one direction and secretly through the Invisible Government in just the opposite direction.”Lisa Pease, “When the CIA’s Empire Struck Back,” Consortiumnews.com, February 6, 2014.

Agency infiltration of the news media shaped public perception of deep events and undergirded the official explanations of such events. For example, the Warren Commission’s report on President John F. Kennedy’s assassination was met with almost unanimous approval by US media outlets. “I have never seen an official report greeted with such universal praise as that accorded the Warren Commission’s findings when they were made public on September 24, 1964,” recalls investigative reporter Fred Cook. “All the major television networks devoted special programs and analyses to the report; the next day the newspapers ran long columns detailing its findings, accompanied by special news analyses and editorials. The verdict was unanimous. The report answered all questions, left no room for doubt. Lee Harvey Oswald, alone and unaided, had assassinated the president of the United States.” Fred J. Cook, Maverick: Fifty Years of Investigative Reporting, G.P. Putnam’s Sons, 1984, 276.

In late 1966 the New York Times began an inquiry on the numerous questions surrounding President Kennedy’s assassination that were not satisfactorily dealt with by the Warren Commission. “It was never completed,” author Jerry Policoff observes, “nor would the New York Times ever again question the findings of the Warren Commission.” When the story was being developed the lead reporter at the Times‘ Houston bureau “said that he and others came up with ‘a lot of unanswered questions’ that the Times didn’t bother to pursue. ‘I’d be off on a good lead and then somebody’d call me off and send me out to California on another story or something. We never really detached anyone for this. We weren’t really serious.’” Jerry Policoff, “The Media and the Murder of John Kennedy,” in Peter Dale Scott, Paul L. Hoch and Russell Stetler, eds., The Assassinations: Dallas and Beyond, New York: Vintage, 1976, 265.

When New Orleans District Attorney Jim Garrison embarked on an investigation of the JFK assassination in 1966 centering on Lee Harvey Oswald’s presence in New Orleans in the months leading up to November, 22, 1963, “he was cross-whipped with two hurricane blasts, one from Washington and one from New York,” historian James DiEugenio explains. The first, of course, was from the government, specifically the Central Intelligence Agency, the FBI, and to a lesser extent, the White House. The blast from New York was from the major mainstream media e.g. Time-Life and NBC. Those two communication giants were instrumental in making Garrison into a lightening rod for ridicule and criticism. This orchestrated campaign … was successful in diverting attention from what Garrison was uncovering by creating controversy about the DA himself.”  DiEugenio, Preface, in William Davy, Let Justice Be Done: New Light on the Jim Garrison Investigation, Reston VA: Jordan Publishing, 1999.

The CIA and other US intelligence agencies used the news media to sabotage Garrison’s 1966-69 independent investigation of the Kennedy assassination. Garrison presided over the only law enforcement agency with subpoena power to seriously delve into the intricate details surrounding JFK’s murder. One of Garrison’s key witnesses, Gordon Novel, fled New Orleans to avoid testifying before the Grand Jury assembled by Garrison. According to DiEugenio, CIA Director Allen “Dulles and the Agency would begin to connect the fugitive from New Orleans with over a dozen CIA friendly journalists who—in a blatant attempt to destroy Garrison’s reputation—would proceed to write up the most outrageous stories imaginable about the DA.” James DiEugenio, Destiny Betrayed: JFK, Cuba, and The Garrison Case, Second Edition, New York: SkyHorse Publishing, 2012, 235.

CIA officer Victor Marchetti recounted to author William Davy that in 1967 while attending staff meetings as an assistant to then-CIA Director Richard Helms, “Helms expressed great concerns over [former OSS officer, CIA operative and primary suspect in Jim Garrison’s investigation Clay] Shaw’s predicament, asking his staff, ‘Are we giving them all the help we can down there?’” William Davy, Let Justice Be Done: New Light on the Jim Garrison Investigation, Reston VA: Jordan Publishing, 1999.

The pejorative dimensions of the term “conspiracy theory” were introduced into the Western lexicon by CIA “media assets,” as evidenced in the design laid out by Document 1035-960 Concerning Criticism of the Warren Report, an Agency communiqué issued in early 1967 to Agency bureaus throughout the world at a time when attorney Mark Lane’s Rush to Judgment was atop bestseller lists and New Orleans DA Garrison’s investigation of the Kennedy assassination began to gain traction.

Time had close relations with the CIA stemming from the friendship of the magazine’s publisher Henry Luce and Eisenhower CIA chief Allen Dulles. When former newsman Richard Helms was appointed DCI in 1966 he “began to cultivate the press,” prompting journalists toward conclusions that placed the Agency in a positive light. As Time Washington correspondent Hugh Sidney recollects, “‘[w]ith [John] McCone and [Richard] Helms, we had a set-up when the magazine was doing something on the CIA, we went to them and put it before them … We were never misled.’ Similarly, when Newsweek decided in the fall of 1971 to do a cover story on Richard Helms and ‘The New Espionage,’ the magazine, according to a Newsweek staffer, went directly to the agency for much of the information. And the article … generally reflected the line that Helms was trying so hard to sell: that since the latter 1960s … the focus of attention and prestige within CIA’ had switched from the Clandestine Services to the analysis of intelligence, and that ‘the vast majority of recruits are bound for’ the Intelligence Directorate.” Victor Marchetti and John D. Marks, The CIA and the Cult of Intelligence, New York: Alfred A. Knopf, 1974, 362-363.

In 1970 Jim Garrison wrote and published the semi-autobiographical A Heritage of Stone, a work that examines how the New Orleans DA “discovered that the CIA operated within the borders of the United States, and how it took the CIA six months to reply to the Warren Commission’s question of whether Oswald and [Jack] Ruby had been with the Agency,” Garrison biographer and Temple University humanities professor Joan Mellen observes. “In response to A Heritage of Stone, the CIA rounded up its media assets” and the book was panned by reviewers writing for the New York Times, the Los Angeles Times, the Washington Post, the Chicago Sun Times, and Life magazine. “John Leonard’s New York Times review went through a metamorphosis,” Mellen explains. “The original last paragraph challenged the Warren Report: ‘Something stinks about this whole affair,’ Leonard wrote. ‘Why were Kennedy’s neck organs not examined at Bethesda for evidence of a frontal shot? Why was his body whisked away to Washington before the legally required Texas inquest? Why?’ This paragraph evaporated in later editions of the Times. A third of a column gone, the review then ended: ‘Frankly I prefer to believe that the Warren Commission did a poor job, rather than a dishonest one. I like to think that Garrison invents monsters to explain incompetence.’” Joan Mellen, A Farewell to Justice: Jim Garrison, JFK’s Assassination, and the Case That Should Have Changed History, Washington DC: Potomac Books, 2005, 323, 324.

CIA Deputy Director for Plans Cord Meyer Jr. appealed to Harper & Row president emeritus Cass Canfield Sr. over the book publisher’s pending release of Alfred McCoy’s The Politics of Heroin in Southeast Asia, based on the author’s fieldwork and Yale PhD dissertation wherein he examined the CIA’s explicit role in the opium trade. “Claiming my book was a threat to national security,” McCoy recalls, “the CIA official had asked Harper & Row to suppress it. To his credit, Mr. Canfield had refused. But he had agreed to review the manuscript prior to publication.” Alfred W. McCoy, The Politics of Heroin: CIA Complicity in the Global Drug Trade, Chicago Review Press, 2003, xx.

Publication of The Secret Team, a book by US Air Force Colonel and Pentagon-CIA liaison L. Fletcher Prouty recounting the author’s firsthand knowledge of CIA black operations and espionage, was met with a wide scale censorship campaign in 1972. “The campaign to kill the book was nationwide and world-wide,” Prouty notes. “It was removed from the Library of Congress and from college libraries as letters I received attested all too frequently … I was a writer whose book had been cancelled by a major publisher [Prentice Hall] and a major paperback publisher [Ballantine Books] under the persuasive hand of the CIA.” L. Fletcher Prouty, The Secret Team: The CIA and Its Allies in Control of the United States and the World, New York: SkyHorse Publishing, 2008, xii, xv.

During the Pike Committee hearings in 1975 Congressman Otis Pike asked DCI William Colby, “Do you have any people paid by the CIA who are working for television networks?” Colby responded, “This, I think, gets into the kind of details, Mr. Chairman, that I’d like to get into in executive session.” Once the chamber was cleared Colby admitted that in 1975 specifically “the CIA was using ‘media cover’ for eleven agents, many fewer than in the heyday of the cloak-and-pencil operations, but no amount of questioning would persuade him to talk about the publishers and network chieftains who had cooperated at the top.” Schorr, Clearing the Air, 275.

“There is quite an incredible spread of relationships,” former CIA intelligence officer William Bader informed a US Senate Intelligence Committee investigating the CIA’s infiltration of the nation’s journalistic outlets. “You don’t need to manipulate Time magazine, for example, because there are Agency people at the management level.” Bernstein, “The CIA and the Media.”

In 1985 film historian and professor Joseph McBride came across a November 29, 1963 memorandum from J. Edgar Hoover, titled, “Assassination of President John F. Kennedy,” wherein the FBI director stated that his agency provided two individuals with briefings, one of whom was “Mr. George Bush of the Central Intelligence Agency.” ” When McBride queried the CIA with the memo a “PR man was tersely formal and opaque: ‘I can neither confirm nor deny.’ It was the standard response the agency gave when it dealt with its sources and methods,” journalist Russ Baker notes. When McBride published a story in The Nation, “The Man Who Wasn’t There, ‘George Bush,’ C.I.A. Operative,” the CIA came forward with a statement that the George Bush referenced in the FBI record “apparently” referenced a George William Bush, who filled a perfunctory night shift position at CIA headquarters that “would have been the appropriate place to receive such a report.” McBride tracked down George William Bush to confirm he was only employed briefly as a “probationary civil servant” who had “never received interagency briefings.” Shortly thereafter The Nation ran a second story by McBride wherein “the author provided evidence that the Central Intelligence Agency had foisted a lie on the American people … As with McBride’s previous story, this disclosure was greeted with the equivalent of a collective media yawn.” Since the episode researchers have found documents linking George H. W. Bush to the CIA as early as 1953. Russ Baker, Family of Secrets: The Bush Dynasty, America’s Invisible Government, and the Hidden History of the Last Fifty Years, New York: Bloomsbury Press, 2009, 7-12.

Operation Gladio, the well-documented collaboration between Western spy agencies, including the CIA, and NATO involving coordinated terrorist shootings and bombings of civilian targets throughout Europe from the late 1960s through the 1980s, has been effectively expunged from major mainstream news outlets. A LexisNexis Academic search conducted in 2012 for “Operation Gladio” retrieved 31 articles in English language news media—most appearing in British newspapers. Only four articles discussing Gladio ever appeared in US publications—three in the New York Times and one brief mention in the Tampa Bay Times. With the exception of a 2009 BBC documentary, no network or cable news broadcast has ever referenced the state-sponsored terror operation. Almost all of the articles referencing Gladio appeared in 1990 when Italian Prime Minister Giulio Andreotti publicly admitted Italy’s participation in the process. The New York Times downplayed any US involvement, misleadingly designating Gladio “an Italian creation” in a story buried on page A16. In reality, former CIA director William Colby revealed in his memoirs that covert paramilitaries were a significant agency undertaking set up after World War II, including “the smallest possible coterie of the most reliable people, in Washington [and] NATO.” James F. Tracy, “False Flag Terror and Conspiracies of Silence,” Global Research, August 10, 2012.

Days before the April 19, 1995 bombing of the Alfred P. Murrah Federal Building in Oklahoma City DCI William Colby confided to his friend, Nebraska State Senator John DeCamp his personal concerns over the Militia and Patriot movement within the United States, then surging in popularity due to the use of the alternative media of that era–books, periodicals, cassette tapes, and radio broadcasts. “I watched as the Anti-War movement rendered it impossible for this country to conduct or win the Vietnam War,” Colby remarked. “I tell you, dear friend, that the Militia and Patriot movement in which, as an attorney, you have become one of the centerpieces, is far more significant and far more dangerous for American than the Anti-War movement ever was, if it is not intelligently dealt with. And I really mean this.” David Hoffman, The Oklahoma City Bombing and the Politics of Terror, Venice CA: Feral House, 1998, 367.

Shortly after the appearance of journalist Gary Webb’s “Dark Alliance” series in the San Jose Mercury News chronicling the Agency’s involvement in drug trafficking, the CIA’s public affairs division embarked on a campaign to counter what it termed “a genuine public relations crisis for the Agency.” Webb was merely reporting to a large audience what had already been well documented by scholars such as Alfred McCoy and Peter Dale Scott, and the 1989 Kerry Committee Report on Iran-Contra—that the CIA had long been involved in the illegal transnational drug trade. Such findings were upheld in 1999 in a study by the CIA inspector general. Nevertheless, beginning shortly after Webb’s series ran, “CIA media spokesmen would remind reporters seeking comment that this series represented no real news,” a CIA internal organ noted, “in that similar charges were made in the 1980s and were investigated by the Congress and were found to be without substance. Reporters were encouraged to read the “Dark Alliance’ series closely and with a critical eye to what allegations could actually be backed with evidence.” http://www.foia.cia.gov/sites/default/files/DOC_0001372115.pdf

On December 10, 2004 investigative journalist Gary Webb died of two .38 caliber gunshot wounds to the head. The coroner ruled the death a suicide. “Gary Webb was MURDERED,” concluded FBI senior special agent Ted Gunderson in 2005. “He (Webb) resisted the first shot [to the head that exited via jaw] so he was shot again with the second shot going into the head [brain].” Gunderson regards the theory that Webb could have managed to shoot himself twice as “impossible!” Charlene Fassa, “Gary Webb: More Pieces in the Suicided Puzzle,” Rense.com, December 11, 2005.

The most revered journalists who receive “exclusive” information and access to the corridors of power are typically the most subservient to officialdom and often have intelligence ties. Those granted such access understand that they must likewise uphold government-sanctioned narratives. For example, the New York Times’ Tom Wicker reported on November 22, 1963 that President John F. Kennedy “was hit by a bullet in the throat, just below the Adam’s apple.” Yet his account went to press before the official story of a single assassin shooting from the rear became established. Wicker was chastised through “lost access, complaints to editors and publishers, social penalties, leaks to competitors, a variety of responses no one wants.” Barrie Zwicker, Towers of Deception: The Media Coverup of 9/11, Gabrioloa Island, BC: New Society Publishers, 2006, 169-170.

The CIA actively promotes a desirable public image of its history and function by advising the production of Hollywood vehicles, such as Argo and Zero Dark Thirty. The Agency retains “entertainment industry liaison officers” on its staff that “plant positive images about itself (in other words, propaganda) through our most popular forms of entertainment,” Tom Hayden explains in the LA Review of Books. “So natural has the CIA–entertainment connection become that few question its legal or moral ramifications. This is a government agency like no other; the truth of its operations is not subject to public examination. When the CIA’s hidden persuaders influence a Hollywood movie, it is using a popular medium to spin as favorable an image of itself as possible, or at least, prevent an unfavorable one from taking hold.” Tom Hayden, “Review of The CIA in Hollywood: How the Agency Shapes Film and Television by Tricia Jenkins,” LA Review of Books, February 24, 2013,

Former CIA case officer Robert David Steele states that CIA manipulation of news media is “worse” in the 2010s than in the late 1970s when Bernstein wrote “The CIA and the Media.” “The sad thing is that the CIA is very able to manipulate [the media] and it has financial arrangements with media, with Congress, with all others. But the other half of that coin is that the media is lazy.” James Tracy interview with Robert David Steele, August 2, 2014,

A well-known fact is that broadcast journalist Anderson Cooper interned for the CIA while attending Yale as an undergraduate in the late 1980s. According to Wikipedia Cooper’s great uncle, William Henry Vanderbilt III, was an Executive Officer of the Special Operations Branch of the OSS under the spy organization’s founder William “Wild Bill” Donovan. While Wikipedia is an often dubious source, Vanderbilt’s OSS involvement would be in keeping with the OSS/CIA reputation of taking on highly affluent personnel for overseas derring-do. William Henry Vanderbilt III, Wikipedia.

Veteran German journalist Udo Ulfkotte, author of the 2014 book Gekaufte Journalisten (Bought Journalists) revealed how under the threat of job termination he was routinely compelled to publish articles written by intelligence agents using his byline. “I ended up publishing articles under my own name written by agents of the CIA and other intelligence services, especially the German secret service,” Ulfkotte explained in a recent interview with Russia Today. “German Journo: European Media Writing Pro-US Stories Under CIA Pressure,” RT, October 18, 2014.

In 1999 the CIA established In-Q-Tel, a venture capital firm seeking to “identify and invest in companies developing cutting-edge information technologies that serve United States national security interests.” The firm has exercised financial relationships with internet platforms Americans use on a routine basis, including Google and Facebook. “If you want to keep up with Silicon Valley, you need to become part of Silicon Valley,” says Jim Rickards, an adviser to the U.S. intelligence community familiar with In-Q-Tel’s activities. “The best way to do that is have a budget because when you have a checkbook, everyone comes to you.” At one point IQT “catered largely to the needs of the CIA.” Today, however, “the firm supports many of the 17 agencies within the U.S. intelligence community, including the National Geospatial-Intelligence Agency (NGA), the Defense Intelligence Agency (DIA) and the Department of Homeland Security Science and Technology Directorate.” Matt Egan, “In-Q-Tel: A Glimpse Inside the CIA’s Venture Capital Arm,” FoxBusiness.com, June 14, 2013.

At a 2012 conference held by In-Q-Tel CIA Director David Patraeus declared that the rapidly-developing “internet of things” and “smart home” will provide the CIA with the ability to spy on any US citizen should they become a “person of interest’ to the spy community,” Wired magazine reports. “‘Transformational’ is an overused word, but I do believe it properly applies to these technologies,’ Patraeus enthused, ‘particularly to their effect on clandestine tradecraft’ … ‘Items of interest will be located, identified, monitored, and remotely controlled through technologies such as radio-frequency identification, sensor networks, tiny embedded servers, and energy harvesters — all connected to the next-generation internet using abundant, low-cost, and high-power computing,” Patraeus said, “the latter now going to cloud computing, in many areas greater and greater supercomputing, and, ultimately, heading to quantum computing.” Spencer Ackerman, “CIA Chief: We’ll Spy on You Through Your Dishwasher,” Wired, March 15, 2012.

In the summer of 2014 a $600 million computing cloud developed by Amazon Web Services for the CIA began servicing all 17 federal agencies comprising the intelligence community. “If the technology plays out as officials envision,” The Atlantic reports, “it will usher in a new era of cooperation and coordination, allowing agencies to share information and services much more easily and avoid the kind of intelligence gaps that preceded the Sept. 11, 2001, terrorist attacks.” “The Details About the CIA’s Deal With Amazon,” The Atlantic, July 17, 2014.



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First of Its Kind Study Shows that Change in Diet Alone — Not Drugs — is Curing Diseases

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by Justin Gardner, The Free Thought Project:

“Let medicine be thy food and let food be thy medicine.” – Hippocrates

In the fourth century BCE, the most famous Greek physician made the bold claim that disease was caused naturally, not by the gods. Environment, diet and living habits all played a part in the health of a person.

The tools and techniques of modern science have allowed us to uncover many secrets of nutrition. But we’re still just scratching the surface of the complex ways in which food compounds interact with the body.

As Mat Edelson wrote for Hopkins Medicine, the rise of corporatism had a big influence on medicine.

“Big pharma was scarce with cash, because they can’t patent a food’s natural properties. And from a practical viewpoint, studying food with its thousands of chemicals and nutrients is incredibly complex. By comparison, targeting and studying a single drug for efficacy in a double-blind model was far more straightforward and lucrative to both researchers and industry.”

Granted, some pharmaceutical products have given a better quality of life to many people, but the singular focus of making a pill to treat disease has come at the cost of virtually ignoring food as medicine.

Dr. David Suskind, a gastroenterologist at Seattle Children’s, is breaking the mold. Suskind has produced the first clinical evidence that food can indeed be medicine.

“In a first-of-its-kind-study led by Suskind, published today in the Journal of Clinical Gastroenterology, diet alone was shown to bring pediatric patients with active Crohn’s and [ulcerative colitis] into clinical remission…

In the small, prospective study, patients were put on a special diet called the specific carbohydrate diet (SCD) for 12 weeks as the sole intervention to treat their Crohn’s or UC. SCD is a nutritionally balanced diet that removes grains, dairy, processed foods and sugars, except for honey. The diet promotes only natural, nutrient-rich foods, which includes vegetables, fruits, meats and nuts.

At the end of the 12 weeks, eight out of the 10 patients who finished the study showed significant improvement and achieved remission from the dietary treatment alone.”

This changes the paradigm for how we may choose to treat children with inflammatory bowel disease,” Suskind said.

More studies will need to be done for confirmation, but these results will certainly draw attention for researchers willing to step outside of the pharmaceutical model.

Food as medicine may prove to have applications outside of inflammatory bowel disease (IBD), as many diseases may be related to chronic inflammation. For example, the charred meat prevalent in American diets is associated with prostate inflammation which can lead to prostate cancer.

“Each person’s disease is unique, just as each person is unique,” said Suskind. “SCD is another tool in our tool belt to help treat these patients. It may not be the best treatment option for everyone, but it is an effective treatment for those who wish to try a dietary therapy.”

The report from Seattle Children’s highlights the story of 11-year-old Adelynne Kittelson, diagnosed with Crohn’s disease at age eight. The usual course for patients is steroids and medications that suppress the immune system, doing nothing to treat the underlying issue of the microbiome causing the immune system to attack the bowel. This pharma treatment also brings the potential for life-long side effects.

After months of uncertainty about Adelynne’s worsening, painful condition, she was finally brought to Dr. Suskind who diagnosed the problem as Crohn’s disease. He offered various treatment options, including the SCD diet. Adelynne’s mother didn’t want her to have life-long side effects from medication, so she opted for the unique dietary approach offered by Seattle Children’s.

Read More @ TheFreeThoughtProject.com



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Abby Martin Responds to Exploitation by NY Times

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Abby Martin issued the following response to the Jan. 7 New York Times article falsely representing her work at RT America. 

The long-awaited report by the Director of National Intelligence (DNI), allegedly proving Russian “interference” in the US election, includes a section solely dedicated to bashing RT, and specifically calls out my former show Breaking the Set, which ended two years ago, as a propaganda vector marking the beginning of the Kremlin attempt to subvert American democracy.

AbbyMartinDesperate to push this US intelligence narrative, The New York Times called the report “damning and surprisingly detailed,” while adding that it includes no actual evidence.

The very next day, on Jan. 7, the Times published another piece titled “Russia’s RT, The Network Implicated in U.S. Election Meddling.”

In the article, NYT journalist Russell Goldman used two blatantly false statements about my work at RT to support the argument that the network is simply a Putin-dictated propaganda outlet.

First, he stated “…two anchors who quit during live broadcasts say the network is a propaganda outlet.”

I did not quit during a live broadcast, nor did I say that the network is a propaganda outlet.

He goes on to say “…Abby Martin, who said before quitting, ‘What Russia did was wrong.’”

Any cursory research into the referenced quote—when I spoke out against Russia’s military entrance into Crimea and the network’s glorification of it—will find that not only did I not quit on air, but that I continued my show for an entire year afterward.

I was interviewed about my on-air statement on many major news stations, from BBC to CNN, where I defended my editorial freedom and also called-out the double standards and hypocrisies in their coverage.

RT issued an official statement in support of my freedom to state my opinion on the network. Over the course of the next year, I continued to voice my concerns and opinions about Russia, from MH-17 to the Ukraine crisis, unfiltered.

I quit the network on my own terms in February 2015 because I wanted to do more in-depth investigative reporting, not because I believed it to be a propaganda outlet.

The Times issued a correction after these false accounts were featured prominently on their website for over 19 hours. But their correction still misrepresents the facts to push their narrative.

The correction reads “this article misstated when the RT anchor Abby Martin left the network. She quit sometime after denouncing on air Russia’s war in Ukraine, not during the live broadcast.”

The error in their article was not simply about when I quit, but the reason and circumstances for leaving the network. The article still implies that I left over this political disagreement.

Additionally, they removed from the article the line “two anchors who quit during live broadcasts say the network is a propaganda outlet,” but they do not note that change in their correction addendum, as is standard.

The article now includes a modified sentence: “Abby Martin quit some time after denouncing Russia’s incursion on air. ‘What Russia did was wrong,’ Ms. Martin said.”

This new line twists the truth, omits the facts, and ironically contradicts their entire argument.

The glaring fact is that I spoke out about the actions of Putin, Russia and RT’s coverage of it on air, and not only was I not fired, but I still had the prime time opinion show on the network for another year.

That begs the question to the NY Times: if RT is simply a Kremlin mouthpiece, how was I allowed to do this and still be featured prominently on the network?

It appears that the Times is, once again, working to push a false perspective being promoted by US government officials and agencies. To paint RT in such a cartoonish, totalitarian fashion—and to promote the idea that it is subverting US democracy—is the dangerous state propaganda that we should be worrying about.

Abby Martin | @abbymartin



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Hypernormalisation

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Submitted by Bryce McBride via Mises Canada,

This past November, the filmmaker Adam Curtis released the documentary Hypernormalisation.

The term comes from Alexei Yurchak’s 2006 book Everything was Forever, Until it was No More: The Last Soviet Generation. The book argues that over the last 20 years of the Soviet Union, everyone knew the system wasn’t working, but as no one could imagine any alternative, politicians and citizens were resigned to pretending that it was. Eventually this pretending was accepted as normal and the fake reality thus created was accepted as real, an effect which Yurchak termed “hypernormalisation.”

Looking at events over the past few years, one wonders if our own society is experiencing the same phenomenon. A contrast with what economic policy-makers term “normalisation” is instructive.

Normalisation is what has historically happened in the wake of financial crises. During the booms that precede busts, low interest rates encourage people to make investments with borrowed money. However, even after all of the prudent investment opportunities have been taken, people continue borrowing to invest in projects and ideas that are unlikely to ever generate profits.

Eventually, the precariousness of some of these later investments becomes apparent. Those that arrive at this realization early sell up, settle their debts and pocket profits, but their selling often triggers a rush for the exits that bankrupts companies and individuals and, in many cases, the banks which lent to them.

In the normalisation which follows (usually held during ‘special’ bank holidays) auditors and accountants go through financial records and decide which companies and individuals are insolvent (and should therefore go bankrupt) and which are merely illiquid (and therefore eligible for additional loans, pledged against good collateral). In a similar fashion, central bank officials decide which banks are to close and which are to remain open. Lenders made freshly aware of bankruptcy risk raise (or normalise) interest rates and in so doing complete the process of clearing bad debt out of the system. Overall, reality replaces wishful thinking.

While this process is by no means pleasant for the people involved, from a societal standpoint bankruptcy and higher interest rates are necessary to keep businesses focused on profitable investment, banks focused on prudent lending and overall debt levels manageable.

By contrast, the responses of policy-makers to 2008’s financial crisis suggest the psychology of hypernormalisation. Quantitative easing (also known as money printing) and interest rate suppression (to zero percent and, in Europe, negative interest rates) are not working and will never result in sustained increases in productivity, income and employment. However, as our leaders are unable to consider alternative policy solutions, they have to pretend that they are working.

To understand why our leaders are unable to consider alternative policy solutions such as interest rate normalization and banking reform one only needs to understand that while such policies would lay the groundwork for a sustained recovery, they would also expose many of the world’s biggest banks as insolvent. As the financial sector is a powerful constituency (and a generous donor to political campaigns) the banks get the free money they need, even if such policies harm society as a whole.

As we live in a democratic society, it is necessary for our leaders to convince us that there are no other solutions and that the monetary policy fixes of the past 8 years have been effective and have done no harm.

Statistical chicanery has helped understate unemployment and inflation while global cooperation has served to obscure the currency depreciation and loss of confidence in paper money (as opposed to ‘hard money’ such as gold and silver) that are to be expected from rampant money printing.

Looking at unemployment figures first, while the unemployment rate is currently very low, the number of Americans of working age not in the labour force is currently at an all-time high of over 95 million people. Discouraged workers who stop looking for work are no longer classified as unemployed but instead become economically inactive, but clearly many of these people really should be counted as unemployed. Similarly, while government statistical agencies record inflation rates of between one and two percent, measures that use methodologies used in the past (such as John Williams’ Shadowstats measures) show consumer prices rising at annual rates of 6 to 8 percent. In addition, many people have noticed what has been termed ‘shrinkflation’, where prices remain the same even as package sizes shrink. A common example is bacon, which used to be sold by the pound but which is now commonly sold in 12 ounce slabs.

Meanwhile central banks have coordinated their money printing to ensure that no major currency (the dollar, the yen, the euro or the Chinese renminbi) depreciates noticeably against the others for a sustained period of time. Further, since gold hit a peak of over $1900 per ounce in 2011, central banks have worked hard to keep the gold price suppressed through the futures market. On more than a few occasions, contracts for many months worth of global gold production have been sold in a matter of a few minutes, with predictable consequences for the gold price. At all costs, people’s confidence in and acceptance of the paper (or, more commonly, electronic) money issued by central banks must be maintained.

Despite these efforts people nonetheless sense that something is wrong. The Brexit vote and the election of Donald Trump to the White House represent to a large degree a rejection of the fake reality propagated by the policymaking elite. Increasingly, people recognize that a financial system dependent upon zero percent interest rates is not sustainable and are responding by taking their money out of the banks in favour of holding cash or other forms of wealth. In the face of such understanding and resistance, governments are showing themselves willing to use coercion to enforce acceptance of their fake reality.

The recent fuss over ‘fake news’ seems intended to remove alternative news and information sources from a population that, alarmingly for those in charge, is both ever-more aware that the system is not working and less and less willing to pretend that it is. Just this month U.S. President Barack Obama signed the Countering Disinformation and Propaganda Act into law. United States, meet your Ministry of Truth.

Meanwhile, in India last month, people were told that the highest denomination bills in common circulation would be ‘demonetized’ or made worthless as of December 30th. People were allowed to deposit or exchange a certain quantity of the demonetized bills in banks but many people who had accumulated their savings in rupee notes (often the poor who did not have bank accounts) have been ruined. Ostensibly, this demonetization policy was aimed at curbing corruption and terrorism, but it is fairly obvious that its real objective was to force people into the banking system and electronic money. Unsurprisingly, the demonetization drive was accompanied by limits on the quantity of gold people are allowed to hold.

Despite such attempts to influence our thinking and our behaviour, we don’t need to resign ourselves to pretending that our system is working when it so clearly isn’t. Looking at the eventual fate of the Soviet Union, it should be clear that the sooner we abandon the drift towards hypernormalisation and start on the path to normalisation the better off we will be.



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Saturday, January 7, 2017

WaPo and journalistic fraud

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Ben Swann once again destroys the mainstream narrativeAs any journalist should know, their first allegiance is always to the truth and the citizens who deserve that truth. Whether the media in this country has always been just another arm of the government, or if that allegiance was shifted during the CIA’s Operation Mockingbird in the 60’s, one thing is now becoming abundantly clear: The corporate media has zero allegiance to the American people, and the truth they deserve. The ...

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WikiLeaks Wins Credibility Contest With CIA 83% to 17%

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WikiLeaks Wins Credibility Contest With CIA 83% to 17%

In an op-ed for the Baltimore Sun, two former, high-ranking intelligence officials tore apart the Obama administration’s vocal and as-yet unproven claim that the Russians interfered with the U.S. election — and hacked systems of the Democratic establishment — to ensure a Donald Trump win.

http://www.dcclothesline.com/2017/01/07/former-cia-and-nsa-officials-just-joined-forces-debunked-the-russian-hack-conspiracy-theory/

Stephen Lendman notes the ongoing Fake News from the NYTimes and other presstitutes re “Russian hacking”

Media Hype Fake News Report Claiming Russian US Election Hacking

by Stephen Lendman

Media scoundrels are all over the new CIA/FBI/NSA report, supporting it like gospel, disgracefully claiming Putin ordered America’s election hacked to help Trump defeat Hillary – despite no evidence in the contents proving it.

In a statement released to reporters, Trump said “(w)hile Russia, China, other countries, outside groups and people are consistently trying to break through the cyber infrastructure of our governmental institutions, businesses and organizations including the Democrat National Committee, there was absolutely no effect on the outcome of the election including the fact that there was no tampering whatsoever with voting machines.”

Media hype barely stopped short of suggesting Putin declared war on America, a disgraceful example of hyperbolic misrepresentation of reality.

The militantly anti-Russia, anti-Putin, anti-Trump New York Times headlined “Putin Led a Complex Cyberattack Scheme to Aid Trump, Report Finds,” saying:

The report was “a virtually unheard-of, real-time revelation by the American intelligence agencies that undermined the legitimacy of the president who is about to direct them…”

That’s as clear as it gets to America’s self-styled newspaper of record calling Trump’s election illegitimate – a seditious act surrounded by a body of Big Lies.

Previous articles explained no hacking occurred. Information was leaked by one or more Democrat party insiders, angry over Hillary stealing her party’s nomination.

Blaming Russia, Putin specifically, is part of bashing its sovereign independence and leadership. Virtually everything reported through official channels, regurgitated by media scoundrels, are lies, damn lies and Big Lies.

The Times: Trump “issued a written statement that appeared to concede some Russian involvement” in America’s election.

Fact: False! His statement, quoted above, said nothing of the sort, stating “there was no tampering whatsoever with voting machines” – meaning no Russian attempt to hack America’s election or influence its results. Trump believes it. So should everyone. Nothing disproves it.

The neocon/CIA house organ Washington Post headlined “Declassified report says Putin ‘ordered’ effort to undermine faith in US election and help Trump,” covering the same misinformation and Big Lies as The Times and other media scoundrels.

Responding to Friday’s report, Putin’s spokesman Dmitry Peskov called it “rubbish,” adding:

“Every day Putin’s website gets attacked by several tens of thousands of hackers. A lot of these attacks are traced to the territory of the USA, but we do not blame the White House or Langley each time.”

On Friday, WikiLeaks tweeted “(t)he released report has poor sourcing and no evidence.” It’s pure propaganda unrelated to cold hard facts.

“Nothing in today’s declassified ODNI report alters our conclusion that WikiLeaks’ US election related sources are not state parties.”

“US government’s declassified ‘Russian hacking’ report has the curious disclaimer that it is based on watching (Russian) TV and reading Tweets.”

WikiLeaks got 84,115 responses to the question: “Who do you believe America?”

Responses were one-sided – 83% believing WikiLeaks, 17% US intell officials.

Deep in its report, The Times, no doubt reluctantly, admitted “the declassified report contained no information about how the (spy) agencies had collected their (alleged) data or had come to their conclusions.”

Draw your own about what clearly in my judgment is outrageous fake news, another black eye on Obama’s deplorable rap sheet as his tenure nears ending.

Stephen Lendman lives in Chicago. He can be reached at lendmanstephen@sbcglobal.net. 

His new book as editor and contributor is titled “Flashpoint in Ukraine: How the US Drive for Hegemony Risks WW III.”

The post WikiLeaks Wins Credibility Contest With CIA 83% to 17% appeared first on PaulCraigRoberts.org.



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US Finally Releases Report Proving Russia Hacked the Election. Just Kidding.

ORIGINAL LINK
russia hackedThe long awaited report is a major flop.

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Fiat Money, Fiat News

ORIGINAL LINK

salient-epsilon-theory-ben-hunt-fiat-mon

Ron Burgundy: Discovered by the Germans in 1904, they named it San Diego, which of course in German means a whale’s vagina.
Veronica Corningstone: No, there’s no way that’s correct.
Ron Burgundy: I’m sorry, I was trying to impress you. I don’t know what it means. I’ll be honest, I don’t think anyone knows what it means anymore. Scholars maintain that the translation was lost hundreds of years ago.
Veronica Corningstone: Doesn’t it mean Saint Diego?
Ron Burgundy: No. No.
Veronica Corningstone: No, that’s — that’s what it means. Really.
Ron Burgundy: Agree to disagree.
― “Anchorman: The Legend of Ron Burgundy” (2004)

Ron Burgundy: Boy, that escalated quickly … I mean, that really got out of hand fast.
Champ Kind: It jumped up a notch.
Ron Burgundy: It did, didn’t it?
Brick Tamland: Yeah, I stabbed a man in the heart.
Ron Burgundy: I saw that. Brick killed a guy. Did you throw a trident?
Brick Tamland: Yeah, there were horses, and a man on fire, and I killed a guy with a trident.
Ron Burgundy: Brick, I’ve been meaning to talk to you about that. You should find yourself a safehouse or a relative close by. Lay low for a while, because you’re probably wanted for murder.
“Anchorman: The Legend of Ron Burgundy” (2004)
Priest: It’s horrifying. If men don’t trust each other, this earth might as well be hell.
Commoner: That’s right. The world’s a kind of hell.
Priest: No! I believe in men. I don’t want this place to be hell.
Commoner: Shouting doesn’t help. Think about it. Out of these three, whose story is believable?
Woodcutter: No idea.
Commoner: In the end, you cannot understand the things men do.
― “Rashomon” (1950)

salient-epsilon-theory-ben-hunt-fiat-mon

Commoner: But is there anyone who’s really good? Maybe goodness is just make-believe.
Priest: What a frightening…
Commoner: Man just wants to forget the bad stuff, and believe in the made-up good stuff. It’s easier that way.
― “Rashomon” (1950)

To be an artist means never to avert one’s eyes.

― Akira Kurosawa (1910 – 1998)

 

If the Emperor had not delivered his [15 August 1945] address urging the Japanese people to lay down their swords — if that speech had been a call instead for the Honorable Death of the Hundred Million — those people on that street in Sōshigaya probably would have done what they were told and died. And probably I would have done likewise. The Japanese see self-assertion as immoral and self-sacrifice as the sensible course to take in life. We were accustomed to this teaching and had never thought to question it.

― Akira Kurosawa (1910 – 1998)

Kurosawa’s Rashomon is the defining movie of an Epsilon Theory world, where Narrative dominates and Truth with a capital T is nowhere to be found. The bandit, the wronged woman, the dead samurai, and the woodcutter witness all testify at trial, and the only certainty, as unsatisfying as it may be, is that we the jury will never know what truly happened in that forest. Such is life. Such is history.

I think Kurosawa is spot on with his assessment of Japanese political culture, by the way. No anti-status quo Trump or Brexit votes there. Just the resignation of self-sacrifice and the long slow slide into irrelevance.  

To Counterfeit is DEATH.

Ben Franklin (1706 – 1790), from a 15 shilling note of his design

salient-epsilon-theory-ben-hunt-fiat-monFor 600 years, from the 13th century to 1870, the punishment for counterfeiting in Great Britain and its colonies was the same as for high treason — to be hanged, drawn, and quartered. First you’d be slowly hanged, so that you came close to asphyxiation but couldn’t end the suffering by breaking your neck, then you’d be castrated, then you’d be disemboweled, and THEN you’d be killed by beheading. And then for good measure your headless body would be chopped into four pieces.

salient-epsilon-theory-ben-hunt-fiat-monBritish counterfeiters during the American Revolutionary War were known as “shovers” for their efforts to “shove” fake dollars into circulation and destabilize the Colonial government. One infamous shover, David Farnsworth, was arrested with more than 10,000 counterfeit dollars, a not-so-small fortune in 1778. George Washington called for Farnsworth to be tortured to death, but Farnsworth got off easy and was simply hanged.

salient-epsilon-theory-ben-hunt-fiat-monThe largest counterfeiting operation in the history of economic warfare was Operation Bernhard, a German plan during the Second World War to destabilize the British economy by flooding the global economy with forged Bank of England notes. The forgeries are, for all practical purposes, indistinguishable from the originals.

salient-epsilon-theory-ben-hunt-fiat-monsalient-epsilon-theory-ben-hunt-fiat-monAlves dos Reis, instigator of the Portuguese Bank Note Crisis of 1925 and my choice for the greatest counterfeiter of all time. ADR didn’t print fake Portuguese currency. He printed fake instructions to the official banknote printers (famed London firm Waterlow and Sons) to print REAL notes equivalent in value to almost 1% of Portugal’s nominal GDP, and ship them to him directly.

It may please your majesty to understand, that the first occasion of the fall of exchange did grow by the King his majesty, your late father, in abasing his coin from six ounces fine to three ounces fine. Whereupon the exchange fell from 26s 8p to 13s 4p which was the occasion that all your fine gold was conveyed out of this your realm.

― Sir Thomas Gresham (1519 – 1579), letter to Queen Elizabeth I

Gresham’s Law: bad money drives good money out of circulation.

Hunt’s Law: fake news drives real news out of circulation.

What is unexpected about medieval houses, however, is not the lack of furniture but the crush and hubbub of life within them. Households of up to twenty-five persons were not uncommon. Since all of these people lived in one or at the most two rooms, privacy was unknown. How did people achieve intimacy under such conditions? It appears that they did not. Medieval paintings frequently show a couple in bed or bath and, nearby in the same room, friends or servants in untroubled, and apparently unembarrassed, conversation.

Witold Rybczynski, “Home: A Short History of an Idea” (1986)

In 1215, the Fourth Lateran Council of the Catholic Church decreed that everyone, king and commoner alike, should practice individual confession. In a very real sense, the IDEA of privacy — the concept of an internal life of the mind as a social good — did not exist in the West before this pronouncement.

They say the Nile used to run

From East to West

And you know I’m fine

But I hear those voices at night

Sometimes

The star maker says it ain’t so bad

The dream maker’s going to make you mad

The spaceman says everybody look down

It’s all in your mind

 ― The Killers, “Spaceman” (2008)

salient-epsilon-theory-ben-hunt-fiat-monIllustration of a wolf trap from Le Livre de la Chasse (c. 1407). An entire pack could be captured by laying a blood trail through a one-way wicker door in a circular fence built around a central pen with a scared, bleating sheep. The design ensured that individual wolves could not see each other until it was too late, each wolf believing that it was on a uniquely rewarding path. I’m pretty sure this painting now hangs in Mark Zuckerberg’s office.

On December 30, the Washington Post published a story claiming that Russian hackers had “penetrated the U.S. electric grid” through an “attack” on Burlington Electric, a Vermont utility.

In a statement that night Vermont Gov. Peter Shumlin (D) said, “Vermonters and all Americans should be both alarmed and outraged that one of the world’s leading thugs, Vladimir Putin, has been attempting to hack our electric grid, which we rely upon to support our quality-of-life, economy, health, and safety. This episode should highlight the urgent need for our federal government to vigorously pursue and put an end to this sort of Russian meddling.”

Vermont Sen. Patrick Leahy (D) said he was briefed by Vermont State Police on Friday evening, and announced via statement that “This is beyond hackers having electronic joy rides — this is now about trying to access utilities to potentially manipulate the grid and shut it down in the middle of winter. That is a direct threat to Vermont and we do not take it lightly.”

According to Vermont Rep. Peter Welch (D), the attack showed that Russia “will hack everywhere, even Vermont, in pursuit of opportunities to disrupt our country. We must remain vigilant, which is why I support President Obama’s sanctions against Russia and its attacks on our country and what it stands for.”

Wow, even Vermont. Those Russian bastards.

The next day, the Washington Post amended their original story. Turns out that there was no “penetration of the U.S. electric grid.” Turns out that a Burlington Electric employee discovered that his notebook computer, which had never and would never be connected to the grid, had a virus on it. And that virus was probably written in Russia. It’s the same type of virus that lifted John Podesta’s emails. It’s the same type of virus that could lift my emails if I clicked on a “Free Gift From Amazon!!” link. That’s it. That was the “attack on our country and what it stands for.” A Burlington Electric employee clicked on a bad link inside a scam email and downloaded a virus.

So was this Washington Post article fake news?

This may surprise regular Epsilon Theory readers, but no, I don’t think it was. It was fiat news, which is to “real news” what fiat currencies like dollars and euros and yen are to “real money” like a gold coin. Fake news is something different. Fake news is counterfeit news, which is to fiat news what counterfeit bank notes are to fiat currencies.

I think this distinction between fiat news and counterfeit news is an important one. Why? Because when we conflate fiat news with counterfeit news we talk past each other. If we equate the Washington Post’s obviously partisan slanting of news with Russia’s obviously interventionist creation of news, as if both are simply purveyors of “fake news”, then we end up in the ridiculous position of apologizing for one, tacitly or explicitly, when we complain about the other. Democrats (and they’re mostly Democrats) justifiably upset about Russia stealing DNC emails and interfering with our election inevitably find themselves required to defend the Washington Post as some paragon of journalistic integrity. Republicans (and they’re mostly Republicans) justifiably upset about the Washington Post casually equating criticism of the Obama administration with being a treasonous stooge inevitably find themselves required to defend Russia as some falsely accused innocent abroad. So long as both Russia and the Washington Post are evaluated on the same simplistic dimension (is it fake news or real news?), we are forced into contortions of cognitive dissonance to criticize one without tarring the other.

My view: both Russia and the Washington Post deserve as much tarring and as much criticism as humanly possible. My view: both Russia and the Washington Post are bad actors. My view: both Russia and the Washington Post present a danger to a well-functioning American democracy. But they present different dangers, with different dynamics, with different strategic interactions, and with different likely policy responses, because they operate on different dimensions of Information Theory. Oh yeah, one more … my view: there are lots of Russias and there are lots of Washington Posts out there.

Russia is in the counterfeit news business. They are trying to influence our political process to their sovereign benefit, just like the United States is in the counterfeit news business inside Russia and every other corner of the world. Russia is always a foe to a status quo American regime, regardless of which party is in the White House, as their sovereign self-interest requires constant competition. If you trust Putin, you are a fool.

The Washington Post is in the fiat news business. They are trying to influence our political process to their institutional benefit, just like the Wall Street Journal and every other mainstream media institution is in the fiat news business. The Washington Post is never a foe to a status quo American regime, regardless of which party is in the White House, as the regime bestows on them the authority to issue fiat news. Still, if you trust the Washington Post, you are no less a fool.

The fiat news business is booming. As a result, the counterfeit news business is booming, too. And if the history of fiat money and counterfeit money is any guide, we ain’t seen nothing yet.

salient-epsilon-theory-ben-hunt-fiat-monThe fiat news business is a centerpiece of Epsilon Theory, from “Uttin’ On the Itz” to “Catch-22” to “The New TVA” to “My Passion Is Puppetry” to “When Narratives Go Bad”, so I won’t repeat all that here. But I’ll repeat some. This is from “Stalking Horse”, one of my all-time favorite Epsilon Theory notes, back in September 2014. I think it holds up pretty well as a definition of fiat news, or what I (and the Fed) have called “strategic communication policy” in the past:

“Once you start thinking about what’s happening in markets and the world as an inextricable weave of fundamental events and political efforts to shape our interpretation of those events to achieve a political end, you start to see stalking horses everywhere. A Fed QE program ostensibly to reduce unemployment and help Main Street? Stalking horse. A regulatory Big Data program ostensibly to identify brokers who churn accounts? Stalking horse. A Chinese banking program ostensibly to liberalize currency exchange rates? Stalking horse.

And it’s not just actual programs or actual market behaviors like the Chinese purchase of U.S. Treasuries. When words are used for strategic effect rather than a genuine transmission of information you create a virtual stalking horse. This, of course, describes every use of words by every politician and every central banker. This is what Bernanke and Yellen and Draghi and Abe and Obama and Merkel mean when they refer to communication policy. Communication policy is the strategic use of words to shape perceptions and expectations. It’s a focus on how something is said as opposed to what is described. It’s a focus on form rather than content, on truthiness rather than truth. It’s why authenticity is as rare as a unicorn in the public world today.

Look, I understand why politicians and bankers have completely abandoned authenticity, an uncommon quality even in the best of times. The Great Recession was a near-death experience for the global economy, and slamming a syringe of adrenaline into the patient’s heart — which was basically what QE 1 did — doesn’t happen without long-term side-effects. To switch the metaphor around a bit, this was a war to preserve the System, and as Aeschylus said 2,500 years ago, the first casualty of war is truth. I really don’t think Bernanke or Draghi came into office thinking that their public statements would become the most powerful weapon in their arsenal, or that they could train markets to respond so positively to words presented strategically for effect, but there you have it. This is what worked. This is how the war was won.

So … I understand why politicians and bankers have adopted a stalking horse technique to shape market expectations and behaviors, but that doesn’t mean I have to like it. And while I am happy to condone the use of emergency powers to win a war and save the world, I am not at all comfortable with their continued use once the crisis is over. Unfortunately, I believe that is exactly what has happened, that “strategic communication policy” has mutated from an emergency measure designed to prevent an economic collapse into a standard bureaucratic process designed to maintain financial stability. Is this banal assumption and routinization of power a natural bureaucratic response to a crisis, something we also saw in the aftermath of the Great Depression? Yes, but I’ve got examples going the other way, too. Lincoln suspended habeas corpus in 1861, and good for him. But in early 1866 — less than a year after Lee’s surrender at Appomattox — the U.S. government stood down and restored Constitutional protections. I am really hard-pressed to understand how the exigencies of recovery from the Great Recession, now more than 5 years on, are somehow more deserving of ongoing emergency policies than the immediate aftermath of the freakin’ Civil War.

Wait a second, Ben. Are you seriously equating the government’s use of “strategic communications” to a suspension of Constitutional protections? Doesn’t that seem a tad over the top? Yes I am, and no I don’t think so. The bedrock assumption of limited, representative government is that we, the people have an inalienable right to make an informed decision about who will make policy decisions on our behalf. Of course this is an imperfect process, and of course the information we use to make these decisions will be mediated and skewed by all sorts of competing interests. But it makes a big difference if the government itself is fully committed to mediating and skewing this information. And it makes all the difference in the world if relatively apolitical institutions like the Fed and various regulatory authorities — institutions which have been granted a vast array of powers over the years precisely because they have been viewed as relatively apolitical — now embrace the highly political act of mediating and skewing information in service to their own particular visions of stability and status quo preservation. This is the danger of strategic communication policy. This is the price we pay for a loss of authenticity within our most important institutions.”

Like I say, holds up pretty well, particularly after this last election cycle. If I rewrote it today, the only change I’d make is to explicitly add news organizations like the Washington Post or CNN to the list of privileged institutions that “now embrace the highly political act of mediating and skewing information in service to their own particular visions of stability and status quo preservation.”

So where does it all go from here? I’ll take a cue from the history of fiat money and its counterfeits and hazard three predictions. After all, prices and news are both just signals when seen through the lens of Information Theory, and the same dynamics and “laws” should apply to both.

First, there’s no reason to believe that the breadth and scope of fiat news won’t grow to the same level of ubiquity as fiat money. There’s really no such thing as “real money”, i.e., gold and silver as a medium for exchange or a store of value, in existence in the world today. That used to be the meaning of gold, but those days are long gone. Today fiat money completely and utterly dominates all global commerce and exchange. Why? Because it supports the existential aims of government: taxation (sovereignty), price control (stability), and liquidity provision (growth). Without the invention of fiat money, global GDP today would be at … I dunno, maybe mid-18th century levels? Something around there, I’d guess. Fiat news serves exactly the same existential aims of government, just in a less overt (but more powerful for being hidden) fashion. There’s just too much at stake for status quo regimes, what with modern referenda like Brexit and national elections like we just experienced in the U.S. and are forthcoming this year throughout Europe, for regime institutions to do anything other than double-down in their embrace and promulgation of fiat news.

Ten years from now we will be awash in “news” to a degree that we can hardly imagine today. That’s what happened with fiat money, and that’s what I think happens with fiat news. The exponential growth in fiat news is still ahead of us, not behind us.

Second, while counterfeit news will continue to suffer the same official opprobrium and punishment as counterfeit money has endured over the centuries, we’re going to see a lot more of it in the years to come. In the same way that it’s easier to counterfeit fiat paper than gold or silver coins, so is it easier to counterfeit fiat news. I mean, the bang for the buck that Russia got from their email hacking and dissemination exploits in 2016 is just … staggering. What Russia did with counterfeit news is the same thing that the British did during the American Revolution with counterfeit dollars. It’s the same thing that the Germans did during World War II with counterfeit pounds. It’s the same thing that I’m sure the U.S. has done in more countries and more conflicts than one can easily count. But what Russia has shown is how easy and cheap it is to counterfeit news for yuuuge sovereign benefit when ALL news is constructed and slanted to some degree. Trust me, this lesson is not lost on China. Or Germany. Or France. Or India. Or Brazil. The Information Wars are just beginning, and the equivalent of hydrogen bombs are both crazy cheap to build and the technology is fully proliferated. There’s no putting this genie back in the bottle.

Is this a potential casus belli? Absolutely. Counterfeit strikes at the heart of what it means to be a sovereign government, whether or not we’re talking about money or news, particularly when the counterfeiting is done by another government. My guess is that the next level of counterfeiting, one that could spark a shooting war, will take the form of something like the Portuguese Bank Note Crisis of 1925, where the real printers of the real money were tricked into printing massive quantities of real notes for a fake customer. This was non-forgery counterfeiting, and it’s the future of sovereign-directed counterfeit news.

Third, Gresham’s Law applies to news as well as money, meaning that fake news drives real news out of circulation. When Thomas Gresham wrote Queen Elizabeth I in 1560 to deliver the bad news that “all your fine gold was conveyed out of this your realm” because her father Henry VIII had debased the currency by lowering the silver content of his coins, he didn’t mean that people packed up their gold and shipped it to France. He meant that people hoarded the old (good) silver coins and didn’t spend them. He meant that people hoarded their gold (or any trusted store of value) and refused to exchange them for Elizabeth’s coins. Elizabethan citizens lost trust in ALL commonly exchanged coins, no matter what the coins looked like or who offered up the coins, because Elizabethan citizens were good game players. If you’re willing to exchange an unknown silver coin for my bad silver coin (or something priced in bad silver coins), then either you’re stupid or that’s also a bad silver coin. Let’s assume you’re not stupid, so I’m going to treat your coin as bad regardless of whether it’s truly a good coin or not. And if you truly have a good coin, there’s nothing you can say to me that will convince me it’s a good coin. You can’t spend your good coin for fair value even if you wanted to. It’s exactly the same with news today. We know that the news has been “debased” through strategic communication policy, through the intentional slanting and mediation of primary news by officially sanctioned sources like Fed Chairs and CNN anchors in the service of stability and status quo maintenance. As a result, we’ve lost trust in ALL commonly exchanged news, no matter what the news is about or who offers up the news. Even though we’re awash in news, just like Elizabethan England was awash in coinage, the exchange value of ALL news has been diminished regardless of its “truth-content”. “Real” news today is diminished in value simply by the act of dissemination. You can’t spend your real news for fair value even if you want to, so it makes no business sense to spend real money to collect real news.

It’s this third point that is the most important, because it points to a potential transformation in the way that we THINK about news, a change in the IDEA of news as a social good. These transformations happen rarely — the invention of privacy, for example, in the 13th century — but they ARE inventions, no less so for being conceptual than the tangible invention of the steam engine or the semiconductor. And when these conceptual transformations do occur, they change the entire course of human civilization.

I’m using the social invention of privacy as a prominent example because I think that this transformation in the idea of news as a political good is connected with a similar transformation in the idea of privacy, both of which are being reinvented by technology. It’s no accident that Facebook is at the center of both.

Here’s the crux of Facebook’s Dec. 15 announcement on combating fake news:

Flagging Stories as Disputed

We believe providing more context can help people decide for themselves what to trust and what to share. We’ve started a program to work with third-party fact checking organizations that are signatories of Poynter’s International Fact Checking Code of Principles. We’ll use the reports from our community, along with other signals, to send stories to these organizations. If the fact checking organizations identify a story as fake, it will get flagged as disputed and there will be a link to the corresponding article explaining why. Stories that have been disputed may also appear lower in News Feed.

In practice this means that four established fiat news institutions — Associated Press, ABC News, the Washington Post, and the Tampa Bay Times (Politifact) — together with a smaller media company, Snopes.com, will share the responsibility for determining what stories are “disputed” and dropped into the memory hole of a lower ranking in News Feed. More fact checkers, particularly more fiat news institutions, will undoubtedly be added to the list, as the process is designed to encourage fiat news institutional participation (The Poynter Institute, developer of the “Fact Checking Code of Principles” at the heart of Facebook’s efforts here, owns the Times Publishing Company, which in turn owns the Tampa Bay Times and Politifact). My sense is that these fact checkers can do a pretty good job of identifying counterfeit news (for example that’s why Snopes.com was started, albeit in an urban legend and email hoax context), but will fail miserably at policing fiat news, for obvious reasons. Not that Facebook cares about the distinction, of course, as they will become the preeminent fiat news provider themselves when all is said and done.

Facebook’s erosion of privacy settings and protections is a long-running saga, reflecting Mark Zuckerberg’s many public statements that privacy is “no longer a social norm.” He’s probably right, which is exactly my point in writing about it in this note and linking it to a change in social norms regarding political information and news. But my concern isn’t that Facebook prevents me from maintaining privacy with regard to other Facebook users. My concern is that Facebook prevents me from maintaining privacy with regard to Facebook and other regime institutions, both corporate and governmental, so that the fiat news I receive is curated and distributed to successfully elicit a specific response from me.

salient-epsilon-theory-ben-hunt-fiat-monI know, I know … if you don’t want your actions and preferences exposed to The Controllers, don’t use Facebook. And I don’t. But in the same way that there are lots of Russias and lots of Washington Posts out there, so are there lots of Facebooks. Plus the Facebook and the Amazon and the Google are getting harder and harder to avoid. Each of these companies has designed a wonderfully effective Medieval wolf trap, complete with blood trail and bleating sheep, to lure all of us wolves into the pen, and I’m certainly no exception to that. It’s brilliant, really, even if horribly depressing.

salient-epsilon-theory-ben-hunt-fiat-monWhat’s happening here is reflective of a prominent feature of American political culture, namely that we tend to trust anything technology or business related, and correspondingly mistrust anything that comes from the government. It’s a big part of the Trump phenomenon, as lots of people have noted, but it goes back literally a couple of hundred years. What’s Hamilton’s core appeal? He’s a self-made man, the highest praise you can offer in the American political tradition. My view, of course, is that it’s absolutely nuts to trust billionaires to devise or administer your social policy, whether it’s Donald Trump or Mark Zuckerberg or Eric Schmidt or Jeff Bezos or whoever, more or differently than you trust permanent members of the political class like the Clintons or the Bushes or whoever. Actually I take that back. I trust technology billionaires like Zuckerberg and Schmidt and Bezos LESS than I trust the Clintons and the Bushes when it comes to my political interests and democracy-supporting social policy, which is really saying something. Why? Because gridlock. I love gridlock. I love the checks and balances embedded in our political machinery, because it prevents government from doing as much as it otherwise would to interfere with and upend my life. There’s no gridlock at Facebook or Amazon or Google, and this is where you’ll find the road to smiley-face authoritarianism. Where are we going? It’s not George Orwell’s 1984. It’s Dave Eggers’ The Circle. A world awash in fiat news as administered by government-licensed technology behemoths with a dissemination “platform”. We don’t trust the news, and in the back of our minds we know we’re being played, but boy, is it an entertaining and compelling delivery.

So what’s to be done? Not much in a political sense. Proposing some “plan” to roll back Facebook and Google and Amazon’s usurpation of fiat news dissemination makes about as much sense as proposing a plan to roll back the Catholic Church in 1215. As a citizen pretty much the best I can do is ring the cow bell with Epsilon Theory and try to convince other citizens to see the world through the same Rashomon-esque lens. As Akira Kurosawa said, to be an artist means never to avert one’s eyes. Ditto for a liberty-loving citizen.

salient-epsilon-theory-ben-hunt-fiat-monAs an investor, though, I hope to do more than just add more cow bell. I think it’s possible to use new technologies to track and analyze the dynamic of fiat news dissemination, i.e., the Narrative, within the discrete social system of capital markets. It’s the same family of new technologies that Zuckerberg and Schmidt and Bezos are using to shape our entire society, just applied for analytical purposes rather than shaping purposes. Plus a wee difference in scale. I’m applying these technologies to a very specific social dynamic — the Common Knowledge Game — that I believe dominates policy-driven markets and story-driven stocks. I call this the Narrative Machine, and it’s the centerpiece of my investment activities for 2017 and beyond. Here’s the Epsilon Theory note that launched the project, and I hope you’ll find this a useful research project to track in the Brave New World ahead.

salient-epsilon-theory-ben-hunt-fiat-money-fiat-news-january-4-2017.pdf (819 KB)

 

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