Peace for the World

Peace for the World
First democratic leader of Justice the Godfather of the Sri Lankan Tamil Struggle: Honourable Samuel James Veluppillai Chelvanayakam

Sunday, August 14, 2016

Cunning crooked renegade Vasanthapriya Ramanayake ‘sells’ president Maithri to cover up his Rs. 30 million theft !


LEN logo(Lanka-e-News -13.Aug.2016, 11.55PM)  Vasanthapriya Ramanayake the faceless cunning crook who moved heaven and earth to make corrupt brutal Mahinda Rajapakse the prime minister (P.M.) on 17 th August 2015, but after failing miserably in that effort did a somersault into the Maithripala Sirisena camp has ‘sold’ president Maithripala Sirisena  to cover up his theft of over Rs. 30 million  rupees   , based on information reaching Lanka e news inside information division.
Based on the report the story is as follows ..
Crooked faceless renegade Vasanthapriya Ramanayake   who has not even passed the GCE ord. level was the Information Director of the Department of information during the nefarious decade of Mahinda Rajapakse , shockingly still continues in that post to the detriment of the country . During the last presidential election , he had misused over Rs. 30 million  of public funds to print  propaganda books etc. for the presidential election campaign of Mahinda .
A complaint received by the FCID in this connection is now being investigated. However , when he was summoned to the FCID , he had furiously berated the FCID officers, using Maithripala as his shield and ‘selling’ his name with all the arrogance he could muster despite being a crook and criminal out and out.
This rascal had claimed that he is Maithripala’s advisor which is an absolute lie, and  in a fit of  rage shouted  ,’if you want to record a statement  come to the presidential secretariat , but  remember , if you are to question me, not only Mahinda Rajapakse’s but even Maithripala’s robberies will stand exposed’ thereby describing Maithri also  as a crook of the Blue brigand of Mahinda Rajapakse.

The FCID officer who was not deterred or daunted by this  cunning renegade cum rascal’s two penny halfpenny threats had treated Vasantha the crook in the manner he should be , and had replied , ‘ it is not necessary that we should come to the Presidential secretariat , and if you don’t respond to the notice sent to your home , it would become peremptory to arrest you.’
The FCID officer has also warned this crooked cunning rascal that it is a  well known fact that he ( Vasantha)  is not a presidential advisor , while adding ,the FCID is investigating the fraud committed by him  when he was serving under Mahinda Rajapakse , and therefore not to drag Maithripala into it .
It was this cunning crooked  rascal cum renegade who was writing articles to Lankadeepa newspaper under the political column “Raasin”  every Friday whitewashing all the rackets  and racketeers of Mahinda Rajapakse  during the latter’s nefarious decade.  It is significant to note , it is  because of these cunning crooks , rascals and renegades who were writing all falsehoods and misleading the public  that media like the  Lanka e news which  espoused the cause of truth had to engage in a struggle for five years to make sure that the rainbow revolution finally emerged victorious. 
---------------------------
by     (2016-08-14 00:22:30)

Jews expelled from Jersualem site on mourning day

More than 300 Jews entered the Al-Aqsa compound, which they refer to as the Temple Mount, for the Tisha B'av commemoration
Ultra-Orthodox Jews read lamentations outside one of the entrances to Al-Aqsa mosque compound, during the annual Tisha B'Av (Ninth of Av) fasting and a memorial day (AFP)

AFP-14 August 2016 12:21 UTC

Hundreds of Jews visited Jerusalem's Al-Aqsa mosque compound on Tisha B'av, a religious day of mourning, with several expelled for praying, a right restricted to Muslims, police said Sunday.
Over 300 Jews entered the site during morning visiting hours, according to Jewish activists and the Waqf - the Jordanian foundation that oversees the site. 
More were expected in the afternoon, when Tisha B'av, which commemorates the destruction of the two ancient temples at the site, nears its end.
Police had boosted security with hundreds of extra officers ahead of the event, which began Saturday night.
Tens of thousands of Jews also prayed at the adjacent Western Wall during the day.
Advocates for prayer rights for Jews at the esplanade, the holiest site in Judaism and referred to as the Temple Mount, have called on Jews to visit the sensitive area.
It is Islam's third holiest site.
According to a police statement, seven Jews were detained for "violating the terms of the visit". 
Honenu, an advocacy group that provides legal aid to extremist Jews, said three of them were held for citing verses from prayer, and another for tearing his shirt, a sign of mourning in Judaism.
Jews are allowed to visit but not to pray there, but the site has been the scene of regular incidents when Jews try to ignore the rule and Muslims intervene to stop them.
Police said Muslims had congregated around two Jews being expelled by police and began yelling at them. Police pushed them away and three Muslims were lightly wounded in the scuffle.
Jerusalem has been at the heart of a wave of violence since October in which 219 Palestinians, 34 Israelis, two Americans, an Eritrean and a Sudanese have died, according to an AFP count.
Most of the Palestinians killed were carrying out knife, gun or car-ramming attacks, according to Israeli authorities.
While the number of attacks has declined in recent weeks, Palestinian fears of Israeli intentions to undermine Muslim control of the Al-Aqsa mosque compound were a central component in the violence erupting 10 months ago.
Palestinians argue that Israel is seeking to change the status quo at the compound, a claim that Prime Minister Benjamin Netanyahu has repeatedly denied.

Israel escalates crackdown on hunger strikers

Palestinians protest in solidarity with Bilal Kayed and other political prisoners in the West Bank city of Nablus on 8 August.Ahmad Al-BazzActiveStills

Charlotte Silver-11 August 2016

Israel is escalating its crackdown on hunger-striking prisoners by denying them their right to meet with their lawyers.

More than 100 prisoners, according to prisoner advocacy group Addameer, are refusing food in solidarity withBilal Kayed, who is leading the latest wave of prisoner hunger strikes and has now gone 57 days without food. Last week, Kayed announced he was refusing all medical treatment until he is released.

Approaching two months without food, Kayed’s body reportedly oscillates between throbbing with pain and falling numb. He is experiencing blurred vision and suffering from dehydration. His skin has turned yellow and begun to peel, and he is losing hair.

Physicians for Human Rights-Israel say he is at risk of a stroke.

Force feeding

A doctor at Barzilai Medical Center, where Kayed is being held, told the prisoner’s lawyer that if Kayed loses consciousness, he will be forcibly treated.

Israeli medical professionals have force-treated Palestinian hunger strikers before. In January, after fewer than 50 days on hunger strike, Muhammad al-Qiq was tied to his hospital bed and a medical team forcibly administered salts and minerals through an IV.

The World Medical Association’s Malta Declaration forbids both applying pressure to end a hunger strike and forced medical treatment. The United Nations’ Istanbul Protocol stresses the need for physicians to obtain informed consent from competent patients before conducting any medical treatment.

Outside Barzilai hospital on 9 August, supporters of Kayed clashed with right-wing Israelis, some of whom shouted “death to terrorists,” according to The Times of Israel. The counter-protesters reportedly threw stones at police when they intervened.

Kayed is protesting being placed under administrative detention – confinement without charge or trial – after he completed an almost 15-year prison sentence.

Detention without charge

But some of the strikers are calling for their own release as well, themselves prominent political prisoners placed under administrative detention for unknown reasons. This widespread practice allows Israel to jail people on the basis of secret evidence.

Last week on 4 August, journalist Omar Nazzal, a member of the Palestinian Journalists’ Syndicate and president of the Democratic Journalists Union, launched his hunger strike in protest of both his and Kayed’s indefinite detention.

The 53-year-old journalist was arrested on 23 April at the border with Jordan, on his way to participate in a general meeting of the European Federation of Journalists.

Nazzal’s wife Marilyn reported that the Israel Prison Service immediately transferred him into a solitary confinement cell after he began his strike.

On 8 August, Israel’s high court rejected Nazzal’s appeal for release, as it routinely does when Palestinian prisoners appeal their administrative detention orders, which are issued by military courts.

Nazzal is being represented by a lawyer with Addameer, who last week said that “it is already known and expected that Israeli courts will never be fair, but it is my duty to try and defend Nazzal.”

But Nazzal is now reporting that the Israel Prison Service has threatened to force-feed him upon his transfer out of solitary confinement. He describes being treated “brutally” and said he was locked in a prison van for hours, until he felt as if he was suffocating.

Brothers on hunger strike

Brothers Mahmoud and Muhammad Balboul continue the hunger strike they launched on 5 and 7 July against their administrative detention, as an Israeli military court upheld their detention orders earlier this week.

Mahmoud, who is working on his master’s degree at Al-Quds University, was given five months, and Muhammad, a dentist, was given six months detention.

The brothers were arrested on 9 June, two months after their 14-year-old sister was detained and accused of possessing a knife.

The siblings are the children of Ahmad al-Balboul, a leader in Fatah’s military wing, al-Aqsa Martyrs Brigades, who was shot dead along with three other Palestinian leaders by undercover Israeli forces in March 2008.

Al-Balboul was assassinated after he and the Palestinian Authority had failed to secure an amnesty deal for him from Israel.

Family visits

In response to the decision by the International Committee of the Red Cross to halve the number of family visitsfor male Palestinian prisoners to just one per month, the Palestinian Authority is offering to cover expenses to maintain the second monthly visit.

In May, the ICRC announced that it would cut the number of family visits to Israeli prisons it coordinates due to the burdensome cost and the failure of families to show up to scheduled trips. Families in the West Bank depend on the ICRC to help them procure travel permits to visit their relatives being held in prisons inside Israel.

The Fourth Geneva Convention forbids an occupying power from transferring prisoners outside of an occupied territory. Yet all but one of Israel’s prisons that hold Palestinians are located outside of the West Bank.

ICRC provides crucial transportation for families who must travel up to seven hours for a brief meeting with their loved ones. Without ICRC’s help, the travel could cost as much as $250.

Qadura Fares, head of the Palestinian Prisoners’ Club, said this week that the Palestinian Authority would sign an agreement with the ICRC, promising to pay for half the coordinated family visits to prisons each month.

But with or without the ICRC’s assistance, Israel can summarily cancel family travel permits, as it has recently done to more than a dozen families seeking to visit relatives in prison.
Yemenis take part in a rally to show support for the Yemeni parliament in Sanaa on Aug. 13. (Yahya Arhab/European Pressphoto Agency)

 
SANAA, Yemen — Ten children died and 28 were injured in what Yemeni locals and officials described as an airstrike on a school in northern Yemen by a U.S.-backed Saudi-led coalition. The aid group Doctors Without Borders confirmed receiving casualties at its medical facility in the area.

The children, according to local reports, were taking exams inside their classrooms in Haydan, an enclave of the city of Saada. Gruesome images of what appeared to be the bodies of the children have emerged on social-media sites.

In a statement released late Saturday night, Maj. Gen. Ahmed al-Asiri, a spokesman for the Saudi military coalition, said the air strike hit a Shiite Houthi rebel training camp and that children were present there as recruits. The claims could not be independently verified.

But Saturday’s attack was the latest airstrike to hit Yemen since U.N.-backed peace talks collapsed a week ago between the Western- and Saudi-backed government of Yemen and Shiite Houthi rebels, who have seized the capital, Sanaa, and other regions. Dozens, mostly civilians, have been killed across the country by the coalition, which dramatically stepped up its air assault Tuesday after five months of relative calm.

In a Twitter feed on Saturday, Doctors Without Borders wrote that the “final number of injured from Haydan school is 28 & 10 deaths. All between 8-15 years old #Saada#Yemen

The conflict began early last year, when President Abed Rabbo Mansour Hadi resigned and fled to the southern city of Aden after Houthi rebels seized and consolidated their hold on Sanaa. Saudi Arabia’s Sunni Muslim monarchy was wary of the Shiite Houthis and their links to Iran, Riyadh’s main rival in the region. So the Saudis and their allies intervened to restore Hadi to power.

The Houthis are also aligned with former President Ali Abdullah Saleh, who remains a powerful presence in the country, and maintain military and political muscle.

The conflict has claimed more than 6,500 lives, about half of them civilians, and has plunged Yemen, already the Middle East’s poorest nation, into a humanitarian crisis and to the brink of famine. Tens of thousands of children, in particular, have felt the brunt of the conflict in myriad ways, including chronic malnutrition and recruitment as soldiers.

Human rights groups have accused the Saudi-led coalition of indiscriminately bombing civilians and systematically committing human rights violations, which Riyadh has denied. Activists and some lawmakers have urged the United States and other Western powers to stop supplying billions of dollars of fighter jets, bombs and other weaponry to Saudi Arabia.

In June, the United Nations placed the Saudi coalition on a blacklist of states and armed groups that kill and maim children in war. About 60 percent of the children killed in Yemen were the victims of airstrikes, according to the United Nations. But the kingdom was swiftly removed from the list after protesting, prompting Secretary General Ban Ki-moon to publicly tell journalists that he had faced “undue pressure” from the Saudis.

Last week, the Pentagon said it planned to sell $1.5 billion more in weapons and military advisory support to Saudi Arabia.

Raghavan reported from Cairo. Sheikha Aldosary in Riyadh, Saudi Arabia, contributed to this report.

Japan to develop missile as tensions with China mount – reports

The countries are locked in a long-running dispute over uninhabited islands called Senkaku in Japan and Diaoyu in China
 A Chinese coast guard vessel sails near disputed islands that are the source of tension with Japan. Photograph: AP
Agence France-Presse-Sunday 14 August 2016
Japan will develop a new land-to-sea missile as part of plans to beef up its defence of remote southern islands, as tensions with China increase over the disputed territory, a report said Sunday.
The two countries are locked in a long-running dispute over the uninhabited islets known as the Senkaku in Japan and the Diaoyu in China.
The report comes after repeated protests by Japanese foreign ministry officials over what Tokyo calls “intrusions” by Chinese ships in the territorial and contiguous waters of the rocky islands.
Tokyo plans to deploy the weapon, which reportedly will have a range of 300km (190 miles) on islands such as Miyako in Okinawa prefecture, the top-selling Yomiuri Shimbun newspaper said, without citing sources.
The range will cover the disputed island chain, the Yomiuri said, adding that the deployment is expected by 2023.
Officials at the Defence Ministry could not be reached for comment.
“In light of China’s repeated acts of provocation around the Senkaku islands,Japan aims to increase deterrence with improved long-range strike capability,” the newspaper stated.
The missile will be developed by Japan and will use solid fuel, the Yomiuri said, referring to the technology that allows for weapon’s long-term storage and capacity to be launched at short notice.
Japan also protested in June after it said a Chinese navy frigate sailed close to territorial waters near the islands for the first time.
Tensions over the islands have been a frequent irritant and strained bilateral relations, though tensions had markedly relaxed over the past two years as the countries held talks.

Philippines: Tens of thousands of explosives uncovered at abandoned mining site

Different types of dynamite. Pic: Flickr/Michelllaurance
Different types of dynamite. Pic: Flickr/Michelllaurance

 

TENS of thousands of powerful explosives have been found at an abandoned mining site in southern Filipino province of Sultan Kudarat.

Authorities found piles of the nitroglycerin-based dynamites at the site, located in the municipality of Bagumbayan, which has a population of 63,700 people.

According to the PhilStar newspaper, the director of the Sultan Kudarat provincial police, Senior Superintendent Raul Supiter, said the explosives were found in an abandoned shelter by villagers two days ago.

The exact amount of dynamites found is unclear, with local media reporting between 18,000 and 39,000 sticks.


The area it was found in used to be a copper and ore extraction site, owned by a firm called Ippo China Mining Company. The company shut down its operations several years ago for unknown reasons, despite the area being located at the foot of the Daguma mountain range, which is full of minerals.

Supiter told the Inquirer that police were appealing to farmers who reportedly took some of the explosives to surrender the “dangerous” weapons.

He was quoted saying: “Mere possession of these dynamites is a crime offense and no bail bond recommended for violators.”

The provincial police will receive assistance from personnel of the Army’s 57th Infantry Battalion and mining experts from the Department of Environmental and Natural Resources to dispose of the explosives.

Spear Phishing in Tehran

Iranian hackers are increasingly using the tools of cyber-espionage against exiles and dissidents.
Spear Phishing in Tehran

BY ELIAS GROLL-AUGUST 9, 2016

The email arrived on the afternoon of March 9, 2016, and it appeared to bring news from an exile’s most feared bureaucracy: the U.S. immigration service.

“You received this email because you do not have a Permanent Residence, your Permanent Residence Status needs to be adjusted or you need to renew/replace your Permanent Residence Card,” the email read. Sent from a dhs.gov mailing address, containing links to the relevant forms, and ending with a cheerful sign-off — “With Best Regards” — the email had the look of a legitimate piece of correspondence from the U.S. government.

It wasn’t: The email had actually been sent from a hacker likely working on behalf of the Iranian government. The links to the requested forms contained malware designed to spy on its recipients — a human rights activist and likely others in the Iranian diaspora — on behalf of Tehran.

The email wasn’t an isolated attack against a potential dissident. Tehran is increasingly turning the tools of computer espionage against both exiles abroad and potential dissidents at home. Western researchers have found evidence that Iranian hackers have targeted the regime’s perceived opponents by hacking into their computers to install spy software, mapped out the millions of Iranian users of the encrypted messaging service Telegram, and targeted journalists for espionage.

While it is unclear exactly how many dissidents’ computers have been infected by the software, when successful the spyware at the very least tracks a user’s every keystroke and sometimes gives hackers the ability to take over a computer and examine its entire contents and communications. Researchers have documented more than 200 intrusion attempts and obtained technical evidence that one strain of malware examined infected 236 victims in 27 countries. These figures all but certainly constitute a small fraction of total Iranian hacking activity.

The findings come from a three-year research project by Amnesty International technologist Claudio Guarnieri and the independent security researcher Collin Anderson. Their research was first presented last week at the Black Hat security conference in Las Vegas, and while they point the finger squarely at Tehran for carrying out these attacks, it is important to note that the evidence for Iranian responsibility remains circumstantial. Attribution in cyberspace remains a tricky business, but Anderson and Guarnieri have collected evidence of tactics, tools, and procedures that constitute about as solid a case for Iranian responsibility as can be made.

Even as Iran continues to implement the terms of a historic nuclear deal, conservative members of its ruling class have sought to maintain a hold on power and prevent a broader rapprochement with Washington. The hardliners are supporting Bashar al-Assad in Syria, propping up proxy militant groups in Lebanon, Yemen, and Iraq, and maintaining their country’s deplorable human rights record. Iran continues to be a global leader in executions, and last week put to death Shahram Amiri, a nuclear scientist suspected of spying on behalf of the United States.

Aggressive surveillance remains a key tool in the regime’s attempt to maintain power, and today, having sophisticated snooping software installed on one’s computer can be as easy as opening the wrong attachment or clicking on a pernicious link. Quietly, software is downloaded in the background and begins communicating with whomever has selected you for surveillance.

Hackers working on behalf of Iran frequently turn to a method known as spear phishing — the use of an email that appears to come from a legitimate account but actually contains a malicious attachment or link — in order to install spyware on their targets’ digital devices.

The March 2016 email that purported to come from U.S. immigration was actually sent from a hacking group dubbed “Sima” by Guarnieri and Anderson for a recurring word in the malware code, and the researchers say that kind of sophisticated impersonation has become a calling card for the group.

In another instance of attempted hacking by Sima, the group sent an email to a human rights activist in which the group impersonated Peter Bouckaert, a top official at Human Rights Watch and a well-known figure within the global activist community. He writes extensively, including for Foreign Policy, and has been the subject of a documentary.

In the email spoofed by Sima, the hackers posing as Bouckaert wrote to alert the recipient about new HRW research showing that Iranian authorities weresending thousands of undocumented Afghans living in Iran to fight in Syria. The link to that research in fact contained software that could be used to spy on the recipient. Hours earlier the recipient, who remains anonymous to prevent retaliation from the Iranian regime, had been tweeting about the very same subject.

Hackers from the Sima group, Anderson said during last week’s presentation in Las Vegas, were “actively monitoring their targets and then responding very quickly to their perceived interests” in order to plant spyware.

But for all their sophistication in crafting emails, hackers from the Sima group were sometimes blundering. One so-called “dropper” used by the group — a program that allows hackers to download other applications onto a computer — generated continuous pop-ups as it attempted to establish itself on the victim’s computer. “User experience for the victim isn’t that great,” Guarnieri said, sardonically.

In another targeted attack by Iran, its hackers broke into the website of the University of Navarra in Spain and then pretended to set up a webinar about human rights issues in the Middle East. The hackers — dubbed “Cleaver” by cybersecurity firm Cylance when that firm wrote about them in 2014 — then emailed invitations to human rights activists. If the activists decided to participate, they were prompted to update Adobe Flash — and in so doing installed surveillance software on their computers.

Other hackers working on behalf of Iran, dubbed “Infy” by cybersecurity firm Palo Alto Networks earlier this year, have targeted journalists working on behalf of the BBC and its Persian-language service. Ahead of the June 2013 election, they sent emails to them purportedly from members of the Iranian opposition, including Mohammad Taghi Karroubi, the son of Mehdi Karroubi, an opposition politician currently under house arrest. They later infiltrated the email of a journalist working for Voice of America and used his email account to send malware to other journalists, according to Anderson and Guarnieri.

For countries such as Iran, malware has become a tool of statecraft. After the United States and Israel targeted Iranian nuclear centrifuges for sabotage with the Stuxnet virus, Iran retaliated by taking out the computers of Saudi Aramco, the oil giant, and hitting American banks online. Iran has turned the same hacking tools against human rights groups and civil society, with devastating consequences. “These organizations are significantly less able to defend themselves,” Anderson said.

But Infy’s activities haven’t been limited to the moderate political opposition, and have also targeted militants waging a low-level war with Iranian authorities. The group also hacked into a website associated with the Jundallah, a Balochi terrorist group operating on Iran’s border with Afghanistan, in order to install spyware on visitors to a blog that carried news about the group.

Even as Iranian hacker groups are going after their targets with precision — human rights activists interested in gender issues were favorites of Sima — Guarnieri and Anderson have also documented how indiscriminate techniques are likely being used to facilitate regime surveillance.

Encrypted messaging services such as WhatsApp, Viber, and Telegram are extraordinarily popular in Iran, both as a means of communication inside the country and with the diaspora. These services, with strong end-to-end encryption and data stored on servers outside the country, present a challenge to Iranian authorities looking to snoop.

Recently, Telegram has become the app du jour, and according to Guarnieri and Anderson’s research, Iranian authorities exploited a bug in the app’s interface and mapped the phone number of nearly every user using the app in Iran. Before Telegram fixed the gap in their systems, Iranian authorities collected more than 15 million numbers. Pulling phone numbers — which Telegram uses to authenticate users — did not breach any communications, Anderson said, but could be used for further targeting of Telegram users in Iran.

ATTA KENARE/AFP/Getty Images

How Long Can Economic Reality Be Ignored?

printing-money

Is more money printed? Does the money find its way into consumer prices? Do we experience simultaneously massive inflation and massive unemployment?

by Paul Craig Roberts

( August 10, 2016, Washington DC, Sri Lanka Guardian) Trump and Hitlery have come out with the obligatory “economic plans.” Neither them nor their advisors, have any idea about what really needs to be done, but this is of no concern to the media.

The presstitutes operate according to “pay and say.” They say what they are paid to say and that is whatever serves the corporations and the government. This means that the presstitutes like Hitlery’s economic plan and do not like Trump’s.

Yesterday I listened to the NPR presstitutes say how Trump pretends to be in favor of free trade but really is against it, because he is against all the free trade agreements such as NAFTA, the Trans-Pacific and Trans-Atlantic partnerships. The presstitutes don’t know that these are not trade agreements. NAFTA is a “give away American jobs” agreement, and the so-called partnerships give away the sovereignty of countries in order to award global corporations immunity from laws.

As I have reported on many occasions, the Oligarchs’ government lies to us about everything, including economic statistics. For example, we are told that we have been enjoying an economic recovery since June, 2009, that we are more or less at full emploment with an unemployment rate of 5% or less, and that there is no inflation. We are told this despite the facts that the “recovery” is based on the under-reporting of the inflation rate, the unemployment rate is 23%, and inflation is high.

GDP is measured in current prices. If GDP rises 3% this year over last year, the output of real goods and services might have risen 3% or prices might have gone up by 3% or real output might have dropped but is masked by price increases. To know what really happened the nominal GDP number has to be deflated by the amount of inflation.

In times past we could get a reasonable idea of how the economy was doing, because the measure of inflation was reasonable. That is no longer the case. Various “reforms” have taken inflation out of the measures of inflation. For example, if the price of an item in the inflation index goes up, the item is taken out and a cheaper item put in its place. Alternatively, the price rise is called a “quality improvement” and not counted as a price rise.

In other words, by defining inflation away, price increases are transformed into an increase in real output.

The same thing happens to the measure of unemployment. Unemployment simply isn’t counted by the reported unemployment rate. No matter how long and hard an unemployed person has looked for a job, if that person hasn’t job hunted in the past four weeks the person is not considered to be unemployed. This is how the unemployment rate is said to be 5% when the labor-force participation rate has collapsed, half of American 25-year-olds live with their parents, and more Americans age 24-34 live with parents than independently.

Finanial reporters never inquire why government statistics are designed to provide an incorrect picture of the economy. Anyone who purchases food, clothing, visits a hardware store, and pays repair bills and utility bills knows that there is a lot of inflation. Consider prescription drugs. AARP reports that the annual cost of prescription drugs used by retirees has risen from $5,571 in 2006 to $11,341 in 2013, but their incomes have not kept up. Indeed, the main reason for “reforming” the measurement of inflation was to eliminate COLA adjustments to Social Security benefits.

Charles Hugh Smith has come up with a clever way of estimating the real rate of inflation—the Burrito Index. From 2001 to 2016 the cost of a burrito has risen 160 percent from $2.50 to $6.50. During these 15 years the officially measured rate of inflation is 35 percent.

And it is not only burritos. The cost of higher education has risen 137% since 2000. The Milliman Medical Index shows medical costs to have risen far above official inflation from 2005 to 2016. The costs of medical insurance, trash collection, you name it, are dramatically higher than the official rate of inflation.

Food, tuiton and medical costs are major outlays for households. Add zero interest on savings to the problem of coping with major cost increases when real incomes are stagnant and falling. For example, grandparents cannot help grandchildren with their student loan debt when zero interest rates force grandparents to draw down their savings in order to supplement essentially frozen Social Security benefits during a time of high inflation. Savings are being taken out of the economy. Many families exist by paying only the minimum payment on their credit card balance, which means that their debt grows monthly.

Real economists, if there were any, looking at the real economic picture would see an economy collapsing into widespread debt deflation and impoverishment. Debt deflation is when consumers after they service their debts have no discretionary income left with which to drive the economy with purchases.

The reason that Americans have no income from their savings is that public authorities put the welfare of a handful of “banks too big to fail” above the welfare of the American people. The enormous liquidity created by the Federal Reserve has gone into the financial system where it has driven up the prices of financial instruments. There has been a stock market recovery but not an economic recovery.

In the past liquidity implied economic growth. When the Federal Reserve loosened monetary policy, the increase in consumer demand caused an increase in the output of goods and services. Stock prices would rise anticipating higher profits. But in recent years financial markets have not been driven by fundamentals, which are adverse, but by the liquidity that the Federal Reserve has pumped into the banking system in order to save a handful of over-sized banks and insurance giant AIG, all of which should have been allowed to fail. The liquidity had to go somewhere and it went into the prices of stocks and bonds, causing a tremendous asset inflation.

What sense does it make to have zero interest rates when high inflation is eating away the real value of money? What sense does it make to have high price/earnings ratios when the consumer market cannot expand? What sense does it make to have a stable dollar when the Federal Reserve has created far more dollars than the economy has created goods and services? What sense does it make to undermine the financial condition of pension funds and insurance companies with zero interest rates, leaving them with no fixed income hedge against the stock market?

It makes no sense. We are in a trap in which collapse seems the only way out. If interest rates reflected the real rate of inflation, the hundreds of trillions in derivatives would blow up, the stock market would collapse, unemployment could not be hidden with under-measurement, budget deficits would rise. What would public authorities do?

When crisis hits, what happens to corporations that used profits and borrowed money, that is, debt, to buy back their own stocks in order to keep the price high and, thereby, executive bonuses high and shareholders happy and disinclined to support takeovers? Chaos and its companion Fear take over from Contentment. Hell breaks loose.

Is more money printed? Does the money find its way into consumer prices? Do we experience simultaneously massive inflation and massive unemployment?

Don’t expect the presstitutes, the politicians, or Wall Street to confront any of these questions.

When the crisis occurs, it will be blamed on Russia or China.

Venezuelans cross reopened border to Colombia for food, medicine

People cross to Venezuela over the Simon Bolivar international bridge after shopping in Cucuta, Colombia, August 13, 2016.REUTERS/Carlos Eduardo Ramirez

By Anggy Polanco | SAN ANTONIO, VENEZUELA-Sun Aug 14, 2016

Thousands of Venezuelans were welcomed to Colombia by a military band early on Saturday morning as the two countries' borders were officially reopened after being closed by Venezuela a year ago.

Some people had traveled across Venezuela to queue overnight hoping to cross to buy food and other basics that are in short supply in Venezuela, which is steeped in an economic crisis.

"I came with my family to do some shopping because we can't find anything to eat," said Wilmary Salcedo, a 17-year-old engineering student who had traveled some 500 miles (800 km) from the central city of Maracay hoping for rice, sugar and cooking oil.

Venezuela's stores lack the most basic foods and medicines. Queues of hundreds and even thousands of people are common, and riots and looting are a daily occurrence.

Venezuela's President Nicolas Maduro abruptly closed the border last August hoping, he said, to protect his country from smugglers and paramilitaries. Critics saw the action as a stunt to shift attention from worsening domestic problems.

Maduro announced the reopening on Thursday, alongside his Colombian counterpart Juan Manuel Santos.

"We're interested in a new beginning in economic and commercial relations with all of Colombia's productive sectors," Maduro said on Thursday. Santos said it would be a "gradual" reopening.

Five border crossings will be open to pedestrians during the day from 6 a.m. to 9 p.m. (1100 to 0200 GMT).
Colombia's Foreign Ministry said more than 28,000 people -- many of them Venezuelans -- had moved across the border in the first few hours that it was open on Saturday.

A representative from Colombia's Foreign Ministry said 5,000 people had crossed in the first two hours.

The border has for years been a hotbed of smuggling of everything from price-controlled toothpaste and pasta to illegal drugs and weapons. Maduro blamed Colombians, among others, for the country's crisis and the closure strained relations between the South American neighbors.

Many people continued to cross the border over the past year using dirt paths, shallow river crossings and by paying officials.

(Reporting by Anggy Polanco; Writing by Girish Gupta; Editing by Toni Reinhold and Sandra Maler)

A woman carries tires on a baby stroller while she crosses to Venezuela over the Simon Bolivar international bridge after shopping in Cucuta, Colombia, August 13, 2016. REUTERS/Carlos Eduardo Ramirez

Food scarcities as weapons of war


article_image

The increasing vulnerability of people all over the world to the ill-effects of war and conflict ought to remind us that the ‘good’ economic globalization is believed to be producing cannot be taken for granted. The question needs to be asked: ‘Where is all the wealth that is believed to be produced going, if entire populations could be reduced to beggary and starvation with a couple of rounds of machine gun fire?’

While agriculture does not seem to be winning the recognition it should in the current global ‘discourse’ on development strategies, in no less places than the present theatres of war in the Middle East and outside are we reminded of how short-sighted the international community could be in tending to underplay the significance of agriculture and food production. A recent AFP report spoke very plainly about hunger being a weapon of war in Syria, Yemen and Nigeria and thereby helped somewhat in reminding the world that without sound agricultural bases, conflict-hit countries in particular could be courting death by starvation.

"More than 50 million people living in 17 conflict-ridden countries are in ‘severe food insecurity’, two UN agencies warned recently", the AFP report said. Syria, Yemen and Nigeria are said to be prominent among these food insecure countries. The relevant UN agencies were quoted as saying that in Syria, for example, 37 percent of the pre-conflict population ‘need urgent food, nutrition and livelihood assistance.’ Farmers are said to be badly in need of aid.

However, in the West at present, farmers are reportedly enjoying bumper cereal harvests. So abundant is grain that the current prices for these items are said to be dipping markedly. Accordingly, there is starvation and death in the world amid plenty. This is a throw-back to the decades of the seventies and eighties when global food production and distribution inequalities produced mass hunger and starvation in parts of Africa and Asia. These issues are dealt with in the most lucid cogent fashion by Susan George in her celebrated book, ‘How the Other Half Dies’.

The food weapon was wielded by the foremost Western powers, at the time, against those states of the Third World who were seen as enemy states. These tactics of disempowerment could be in vogue among the big powers once again today. The aim could very well be to starve the perceived enemy population and to bring it to its knees.

These issues are of particular salience to the ‘emerging economies’, many of which are Third World countries of yesteryear. There is a marked tendency among these countries to develop their services sectors at the expense of agriculture. Sri Lanka, also seen as an ‘emerging economy’, is a case in point. The latter’s services account for nearly 60 percent of its economy but if and when the services bubble bursts, Sri Lanka couild be reduced to pleading with the West for food aid, unless it further develops its agriculture sector. If Venezuela was less dependent on oil, sections of its citizenry would not be rummaging bins for their food today.

So, it ought to be plain to see that countries cannot do without robust agricultural sectors because states with undeveloped agricultural resources could very well be courting the risk of malnutrition, poverty and starvation. War and conflict aggravate these crises and chronically conflict-hit countries testify to these realities most dramatically.

But something constructive ought to be done about the tens of thousands of the displaced in the current war zones who are reduced to beggary, starvation and death. They are suffering amid plenty and since they are not party to any of the conflicts which are raging, the international community, inclusive of the UN and the major powers, is obliged to ease the lot of these suffering people by at least meeting their material needs. These hapless people ought to be provided food aid urgently and the required resources should be channeled to them to enable them to engage in small scale agricultural enterprises, to the extent practicable.

Starving those states and populations perceived as enemies into subjugation is a war tactic adopted by major powers down the ages, but such inhumanity cannot be countenanced in contemporary times when organizations such as the UN are tasked with providing more than a semblance of global governance. It is the duty of the ‘civilized world’ to ensure that food scarcities and hunger are not used by major powers and other actors to achieve their military and political objectives.

Fortunately, for civilian populations the world over, whom prosperity-driven states are tending to neglect and even forget the existence of, the World Social Forum is taking up their cause in the most perceptive way. Born as a constructive critique to the World Economic Forum that brings together the world’s wealthiest states, the WSF, at present meeting in Montreal, has this to say about the state of the world’s economy:’Social inequality is everywhere. We want to overcome North-South divisions and say clearly that there are social problems worldwide, and also global solutions.’

Knowledgeable sections with a social conscience ought to welcome this stress on the long forgotten North-South divide. The worldwide economic divide, based on wealth disparities between the foremost economic powers and the developing world, denoted by this phrase, continues to exist, although in recent decades, this divide has been tended to be effaced by the hype that has been churned out by interested parties over the perceived benefits of economic globalization. That is, neo-liberalism has been marketed in the most misleading glowing terms. However, besides the global wealth gap, wealth and class disparities, even intra-state, are growing and one recent proof of this is the notable presidential campaign success in the US of Senator Bernie Sanders.

Accordingly, many thanks to organizations such as the WSF for keeping wealth and poverty linked issues alive and open to debate. The North-South debate remains relevant and needs to be revived if the true state of the world economy is to be exposed.

The increasing vulnerability of people all over the world to the ill-effects of war and conflict ought to remind us that the ‘good’ economic globalization is believed to be producing cannot be taken for granted. The question needs to be asked: ‘Where is all the wealth that is believed to be produced going, if entire populations could be reduced to beggary and starvation with a couple of rounds of machine gun fire?’

‘Emerging economies’ in particular need to realize that countries cannot consider themselves economically stable if their agricultural sectors are allowed to suffer neglect. Countries minus an independent agricultural base, that could place ample food on the table. cannot be seen as wealthy or stable. This is the lesson that must be learnt from the vulnerable peoples around us.