Part I: Top Ten Stories

September 11, 2018

CAF Note: This is a listing of stories that support my discussion with Dr. Joseph Farrell for News Trends & Stories Part I.

Part I includes our stories for our first two categories: economy & financial markets and geopolitics.

ECONOMY & FINANCIAL MARKETS

The economy and financial markets both reflect a period of rapid change. Here are our picks for the top stories in the economy and financial markets in the 3rd Quarter 2018.

Story #1: AI Superpowers: China vs. USA vs. the Rest of the Planet in AI and Tech

Deep learning AI is here, and it is rocking our world. Geopolitically and culturally, the AI race is between China and the United States—with Japan and India positioning themselves to also become players. What happens when AI takes over to such an extent that entrepreneurs can’t even understand their own operations? Are there are any safeguards to ensure integrity of the data going into AI systems, or are we looking at “garbage in, garbage out”? Is the influence of AI the reason that policy-making is looking ever more insane and inhuman?

Story #2: Growth of U.S. Dollar Alternatives

The era of U.S. dominance over digital payment and clearing systems (and the satellites that those systems run on) is likely coming to an end. The Iran sanctions offered a “crisis of opportunity,” allowing Western Europe to come out into the open about its desire for an independent financial clearing system. While the U.S. continues to rely on its traditional military power playbook, Europe, Russia, China, and Japan made it clear that they are moving forward to bypass the U.S. and build more versatile financial ecosystems of their own.

Story #3: Rising Interest Rates and U.S. Debt Acceleration

The steady decline in interest rates that began around 1980 is ended, with the new trend of rising interest rates. This not only means an acceleration of U.S. debt (even though the Federal government is collecting record individual income tax revenues!), but also inflation. With the real estimated cost of inflation running at around 10% a year, expect to feel the impact on every area of your life and business dealings, including food and energy—while the leadership imports skilled intellectual capital from Asia to help keep a lid on labor prices.

Story #4: Emerging Markets U.S. Dollar Bear Trap

The U.S. dollar bear trap became more apparent, with U.S. repatriation of dollars and the falling value of commodities leaving emerging markets up to their eyeballs in dollar debt. This triple whammy promises to create pain around the world. What would it be like to live through a 99% drop in currency value (Venezuela) or 30% inflation (Argentina)? The bear trap will likely be successful in the short term, but in the long term, expect blowback. Affected countries are going to start turning to other players in Europe and Asia—creating even more incentive for those regions to build independent financial ecosystems. While the U.S. puts up toll booths, everyone else is out there building side roads around them.

Story #5: U.S.: Calling Capital Home

Capital and operations continued to come home—call it reverse globalization. With tax reform and government-engineered corporate monopolies (enforced with space dominance), the U.S. looks like it is building a paradise for oligarchs. This does not bode well for the country’s small businesses and farmers.

Meanwhile, despite trade wars and higher interest rates, “the most hated bull market in history” continued, helped by an estimated $1 trillion in stock buybacks.

In the 3rd Quarter, there was a serious battle about who controls the media and the spin at home, underscoring the importance of free speech.

GEOPOLITICS

Story #6: FASB Announcement Shifts the U.S. Budget into Never Never Land

Out-of-control secrecy won a darkly comic victory in the 3rd Quarter with the Federal Accounting Standards Board’s de facto admission that it is not going to comply with financial management laws or the U.S. Constitution. U.S. government accounts are now completely meaningless—a small group of unnamed people can turn an unknown amount of money secret and keep it that way. Think creatively about how you are going to take care of yourself because this off-balance-sheet system with no accountability or integrity is not going to be there for you. Along with the Director of National Intelligence powers to waive SEC disclosure rules for corporations for reasons of national security, there is real concern that both Treasury and stock markets are going dark.

Story #7: Deterioration of the Bretton Woods System; Rise of the Land Empire

Europe and Russia gave signals that Bretton Woods and NATO are unraveling, with Macron’s extraordinary statement that Europe can no longer rely on the U.S. for military defense offering one example. At the same time, with the build-out of independent financial systems and the opening up of new railroad lines and sea lanes, Europe, Russia, and Asia continue to forge economic relationships for more stable and meaningful exchanges.

Story #8: Global Thermal and Weather Warfare

The thermal warfare that we are seeing in areas like California, Greece, and British Columbia and the escalation of weather warfare and disaster capitalism are telling us something important: Understand the world you live in, be prepared for disasters, and appreciate that very powerful people are in a hurry—there is no time for polite conversations about property rights or the Constitution.

Story #9: The War for the Internet

The concept of net neutrality is clearly on the ropes. Some states are pushing back, but their reach is limited. We even saw a Supreme Court nominee describe net neutrality as a violation of the Constitution! With the help of AI, this makes the Internet an even more powerful mechanism for manipulation and dirty tricks—including as a tool for creating shadow work and hassles at a very granular level for those who are not helping the Deep State. If you think the shadow work is bad now, just wait until after the 2020 elections.

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Story #10: Anglo-American Powershifts

With the financial coup d’état over, we have an invisible management at the top that is more powerful than ever. We’re witnessing a turnover in leadership, with the Trump Administration representing one faction (along with the resurgent neocons), but the situation is volatile. Don’t get lured into the notion that purges will help—purges are likely to just be a tactic to drain the swamp of obsolete leadership. The Kavanaugh hearings reminded us of the importance of believing in the law, as we watched governance by smear, along with the violation of due process. Remember that there is power in the law; we should not let go of that.

As Theresa May continued to work out a Brexit deal, one has to wonder: Is Brexit a post-financial coup d’état “cut-and-run”? There were trillions in the Commonwealth’s offshore havens right around the time that the Queen subtly floated the idea of leaving the EU.

In the middle of the Silk Road, Iran continues to be a hot spot.

Rollovers in leadership are happening elsewhere, too, with Malcolm Turnbull out in Australia.

The collapse of a privatized bridge in Italy raised questions about the wisdom of letting private corporations take care of infrastructure.

 

 

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