An Important Message From Agriculture Secretary Sonny Perdue…


Agriculture Secretary Sonny Perdue has an important message about the U.S. food sector. With shortages in the retail food (grocer) sector the last part is key…. “don’t take more than you would normally use in a week or two.”  WATCH:

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The aspect that most models are missing, is the pressure on the supply-chain will not soon end.  The restaurant sector (‘food away from home’) appears to be operating at far less than half capacity (perhaps as low as 25%) due to coronavirus restrictions.  As long as those food consumers remain shifted into the retail supply chain (food at home), there are going to be long-term shortages due to capacity constraints and distribution limits.

Processing/Manufacturing – – – Distribution – – – Retail Stores

To gain an idea of the scale of the challenge here’s some big picture analytics.  There are approximately 50,000 retail outlets for grocery sales nationwide with about 250 large scale distribution centers (warehouses) regionally placed.

If you take an average across all grocers, a conservative estimate for one product category, hot dogs, each retail store would need roughly 20 cases for a resupply (all brands).  That’s one million cases of hot dogs across all retail outlets.  [50,000 stores at 20 cases each]

However, the distribution centers would also need 1 million cases, for a replenishment average of 2.5 to 3 days later.  Additionally, within 7 days (from the original delivery date) another 1 million cases would have to arrive from the manufacturer(s) to resupply the distribution centers.

That’s a total production demand for ‘hot dogs‘ of 3 million cases per week across all brands.  240 to 360 individual packages selling (twice weekly) at the store level across all grocery outlets; throughout the country.

3 million cases of hot dogs equals 600 semi tractor-trailers with 5,000 cases each, nationwide in the logistical supply chain. [200 trailers per stage: retail (day 1), distribution (day 2.5/3.0), manufacturing (day 7)]  That’s 600 tractor trailer loads, for one product category, nationwide.   [Easter is April 12th, Memorial day May 25th]

That’s a very conservative supply chain demand on one product category.

That’s just hot dogs.

Now, take the same baselines and consider the logistics of 100 cases of paper goods at the current level of need (retail all outlets), resupply (all distribution), and manufacturing:

100 cases needed per retail outlet (50,000) equals a 5 million case fill on day one.  An additional five million cases on day 3 (from distribution), and an additional five million within seven days from manufacturing.  That’s 15 million cases needed.

LOGISTICS: At 800 cases per trailer, 15 million cases of paper goods means 6,250 semi-trailers (retail), 6,250 trailers all distribution within three days, and 6,250 semi-trailers from manufacturing to distribution within seven days.  A total of 18,750 trailer loads of paper goods (towels and toilet tissue) within one week; nationwide.

♦ It is impossible for the current manufacturing supply chain (all outlets) to start from a ZERO baseline in stores and generate 3,000,000 cases of hot dogs, delivered by 600 tractor trailers, in a week.

♦ It is impossible for the current manufacturing supply chain (all outlets) to start from ZERO baseline in all stores and generate 15,000,000 cases of paper goods, delivered by 18,750 tractor trailers, in a week.

• CEREAL – It also seems impossible for the current retail supply chain (all outlets) to start from ZERO and generate 12,000,000 cases of cereal (all brands), delivered by 6,000 tractor trailers in a week.  (80 cases per store, equals 2,000 trailers/2k per – total supply chain)

• SOUP – It seems impossible for the current retail supply chain (all outlets) to start from ZERO and generate 6,000,000 cases of soup (all brands), delivered by 2,400 tractor trailers in two weeks 14 days. (40 cases per store, equals 800 trailers – total supply chain)

[Note for distribution of non perishable “pasta” and “rice” the sector mirrors soup.]

Bottom Line – There are going to be long term retail supermarket shortages until restaurants re-open.  Yes, the total food supply chain is ok, but the retail sector of the supply chain is grossly overwhelmed.  Math is math and no-one is doing it.

People are not being honest about the extent of the disruptions.

Easter is April 12th and Memorial Day is May 25th.

(Part II) – Coronavirus as a Global Economic Reset…


…there had to be a point where the value of the Wall St economy surpassed the value of the Main St economy… Part I Here

We now look forward, and consider the question: How would the multinational underwriters, the multinational financial systems, reset all transactional tables (the bookkeeping systems underneath the valuation) if the U.S. stock market was ever forced to re-value economic nationalism over multinational globalism?

To first answer the “how” question, we must visit the “why” question. Why would the multinational financial underwriters want to reset their valuations?

Obviously, the global financial system does not act altruistically. What would motivate the global wealth valuation authority (various market investment indexes) to want, or need, a reset.

The answer to the “why” question might not be as challenging as it appears.

First, there has been a seismic shift in how the world looks at the economic exploitation of multinational systems, or globalism.  See Bernie Sanders?  See those yellow vests in France?  See what happened with the U.K. Brexit referendum?  See the shrinking EU influence?  See the open/public confrontation and push-back against China? See Trump? All examples are consequences of the rise of economic nationalism.

Secondly, the original Wall Street corporate motive (during decades of mergers and acquisitions) to shift product manufacturing to Southeast Asia (ASEAN nations) was driven by a lower cost of overall business, higher profit margins and greed.

As a direct outcome economic wealth was shifted from the U.S. to ASEAN nations, and particularly China. Low wages, low regulation, cheap operational costs, incentives and subsidies from Asia equals cheap TV’s, sneakers, furniture and durable goods.

Even with high fuel prices and overseas shipping costs, there was a big difference between U.S. and ASEAN manufacturing costs.  As hundreds of U.S. Wall Street multinationals chased profits the rust-belt was created.

However, over time (three decades) the outflow of U.S. wealth resulted in a higher wealth level in the ASEAN nations.  Over time Asian workers receive higher wages and their standard of living increased.

With 30 years of stagnate wage growth in the U.S, and with rising wages and standards in southeast Asia, the difference in labor costs starts to narrow. Simultaneously, the internal economy in China, Vietnam, S-Korea etc. all started to increase.

The ASEAN workers are now buying stuff they couldn’t afford before.

Instead of a reliance on the U.S. consumer, the internal economy (local demand on a generational scale) starts driving a need in Asia for the same products.  As a result, more U.S. and global multinationals expanded operations in those ASEAN nations because new consumers were created.

However, the multinationals were also taking advantage of (exploiting) prior trade constructs like NAFTA.  Ex. U.S. multinationals used Canada and Mexico to assemble Chinese products for distribution into the U.S.

Along comes Donald Trump who has watched all of this and he wants to change it.

President Trump starts initiating policies that specifically benefit Main Street by speeding up the process of narrowing the cost difference between the U.S. and SE Asia.

President Trump calls these policies “America First”.

Trump lowers the corporate tax rate to offset the ASEAN benefit of Chinese subsidies. A tax policy that also makes corporate tax inversion less likely.

Trump further narrows production costs by lowering U.S. energy costs. A policy to unleash all facets of energy development (ex. pipeline approvals and ANWR opening). Again, lower energy costs in the U.S. narrows the cost difference for manufacturing.

Trump deregulates various industries, again closing the gap between the U.S. and ASEAN nations. Part of this deregulation allows for expanded (easier) raw material development.

With the initial framework established, President Trump starts getting serious.

President Trump puts a big wrench into the cost dynamic with tariffs on imported goods from China and Asia.  Trump then eliminates the three-decade-old NAFTA loopholes that allowed manufacturers to work around origination rules.

The USMCA has more strict origination rules that require parts to originate in North America. The tax/tariff for violating the origination rule(s) are not particularly high, but they are a disincentive. Again, that narrows the cost difference.

All of these policies, lower corp taxes, deregulation, lower energy costs, access to abundant raw materials; closed NAFTA loopholes; and the looming threat of easy to apply tariffs; work together to narrow the cost difference between production in ASEAN nations and production in the U.S.

Then when you factor-in shipping costs & new trade rules, well, the difference is minimal.

So there’s the “why” answer.

♦ The multinational systems (Wall St. valuation underwriters) are now open to a reset in the current global evaluation indexes, because the landscape has completely changed.

A 72″ flat screen TV can be made in the U.S. for the same price as the TV in Vietnam.

However, there’s still another problem… For that, we need a metaphor… so we’ll stick with a fictional TV corporation.

A U.S. electronic multinational has a stock market evaluation based, in part, on their TV assembly operations overseas.  Assume that division of the parent company is 20% of the total company valuation. If that company wants to return the TV division to the U.S. the exit cost of the move is not worth 20% of their total valuation.

The physical land (leased or owned), physical factory (leased or owned), and physical machinery are worth pennies on the original investment dollar.

It is the operation, and the preceding financial result, that carried the Wall Street valuation.  If the TV division is going to relocate into the U.S, Mexico or, less likely Canada, that division is going to have to invest in the move and only recapture a few dollars from the sale of land, factory or equipment they leave behind.

How do they pay for the costs to return to North America?…

…and, more importantly…

How do the multinational underwriters who assigned the divisional valuation, and the investors who subsequently inflated the valuation, lower the divisional valuation to reset for an entirely new landscape and growth/profit opportunity?

In essence what this “TV” example shows is a corporation detaching their valuation from globalism, and reattaching their valuation to economic nationalism, Main Street USA, again.

That’s the opportunity behind Coronavirus….

(Part I) – Coronavirus as a Global Economic Reset…


A very big picture discussion requires a considerable baseline.

The stock market is not the U.S. economy; the stock market is an investment instrument that determines valuations of economic activity company by company. The valuation is considerably arbitrary, based on the determinations of the arbiters (investors). This is empirically true.

However, that said, how would the multinational underwriters, the multinational financial systems, reset all transactional tables (the bookkeeping systems underneath the valuation) …if the U.S. stock market was every forced to re-value economic nationalism over multinational globalism?    Enter “Coronavirus”.

Four years ago CTH first explained a new way to look at the U.S. economic system and how Main Street was/is disconnected from Wall Street.  We presented a metaphor to explain. Before going deeper into the discussion of tomorrow; and at the request of several people who now accept the era of “deglobalization” is upon us,  I first present that prior reference & then will use this as the baseline to describe what could come next.

There is a key phrase at the fulcrum of everything past:

…there had to be a point where the value of the second economy (Wall Street) surpassed the value of the first economy (Main Street).

What we are going to outline in part II is the possibility what happens when this natural truism is reversed.  The objective is to answer: How, specifically would Wall Street reset its evaluative systems if Main Street once again emerged as the priority?

But first, a baseline revisit is needed.

2015/2016 – Traditional economic principles have revolved around the Macro and Micro with interventionist influences driven by GDP (Gross Domestic Product, or total economic output), interest rates, inflation rates and federally controlled monetary policy designed to steer the broad economic outcomes.

Additionally, in large measure, the various data points which underline Macro principles are two dimensional. As the X-Axis goes thus, the Y-Axis responds accordingly… and so it goes…. and so it has historically gone.

trump convention 2

Traditional monetary policy has centered upon a belief of cause and effect: (ex.1) If inflation grows, it can be reduced by rising interest rates. Or, (ex.2) as GDP shrinks, it too can be affected by decreases in interest rates to stimulate investment/production etc.

In short, FEDeral intervention.

However, against the backdrop of economic Globalism -vs- economic Americanism, CTH is noting the two dimensional economic approach is no longer a relevant model. There is another economic dimension, a third dimension. An undiscovered depth or distance between the “X” and the “Y”.

I believe it is critical to understand this new dimension in order to understand Trump economic principles, and the subsequent “America-First” economy he’s building.

As the distance between the X and Y increases over time, the affect detaches – slowly and almost invisibly. I believe understanding this hidden distance perspective will reconcile many of the current economic contractions. I also predict this third dimension will soon be discovered and will be extremely consequential in the coming decade.

To understand the basic theory, allow me to introduce a visual image to assist comprehension. Think about the two economies, Wall Street (paper or false economy) and Main Street (real or traditional economy) as two parallel roads or tracks. Think of Wall Street as one train engine and Main Street as another.

The Metaphor – Several decades ago, 1980-ish, our two economic engines started out in South Florida with the Wall Street economy on I-95 the East Coast, and the Main Street economy on I-75 the West Coast. The distance between them less than 100 miles.

As each economy heads North, over time the distance between them grows. As they cross the Florida State line Wall Street’s engine (I-95) is now 200 miles from Main Street’s engine (traveling I-75).

As we have discussed – the legislative outcomes, along with the monetary policy therein, follows the economic engine carrying the greatest political influence. Our historic result is monetary policy followed the Wall Street engine.

a17b2-hip-replacement-recall-bribery[…] there had to be a point where the value of the second economy (Wall Street) surpassed the value of the first economy (Main Street).

Investments, and the bets therein, needed to expand outside of the USA. hence, global(ist) investing.

However, a second more consequential aspect happened simultaneously. The politicians became more valuable to the Wall Street team than the Main Street team; and Wall Street had deeper pockets because their economy was now larger.

As a consequence Wall Street started funding political candidates and asking for legislation that benefited their interests.

When Main Street was purchasing the legislative influence the outcomes were beneficial to Main Street, and by direct attachment those outcomes also benefited the average American inside the real economy.

When Wall Street began purchasing the legislative influence, the outcomes therein became beneficial to Wall Street. Those benefits are detached from improving the livelihoods of main street Americans because the benefits are “global” needs. Global financial interests, investment interests, are now the primary filter through which the DC legislative outcomes are considered.

There is a natural disconnect. (more)

Here is an example of the resulting impact as felt by consumers:

economy-1

♦ TWO ECONOMIES – Time continues to pass as each economic engine heads North.

Economic Globalism expands. Wall Street’s false (paper) economy becomes the far greater economy. Federal monetary policy follows and fuels the larger economy. (Note: size is determined by value, not by production.) In exchange for policy the Wall Street benefactors pay back the politicians.

Economic Nationalism shrinks. Main Street’s real (traditional) economy shrinks. Domestic manufacturing drops. Jobs are off-shored. Main Street companies try to offset the shrinking economy with increased productivity (their limited fuel). Wages stagnate.

Now it’s 1990 – The Wall Street economic engine (traveling I-95) reaches Northern North Carolina. However, it’s now 500 miles away from Main Street’s engine (traveling I-75). The Appalachian range is the geographic wedge creating the natural divide (a metaphor for ‘trickle down’).

By the time the decade of 2000 arrives – Wall Street’s well fueled engine, and the accompanying DC legislative attention, influence and monetary policy, has reached Philadelphia.

However, Main Street’s engine is in Ohio (they’re now 700 miles apart) and almost out of fuel; there simply is no more productivity to squeeze.  Technological gains, used as fuel for productivity, start to level-off. The engine starts to slow.

From that moment in time, and from that geographic location, all forward travel is now only going to push the two economies further apart. I-95 now heads North East, and I-75 heads due North through Michigan. The distance between these engines is going to grow much more significantly now with each passing mile/month….

However, and this is a key reference point, if you are judging their advancing progress from a globalist vessel (filled with traditional academic economists) in the mid-Atlantic, both economies (both engines) would seem to be essentially in the same place based on their latitude.

From a two-dimensional linear perspective you cannot tell the distance between them.

It is within this distance between the two economies, which grew over time, where a new economic dimension has been created and is not getting attention. It is critical to understand the detachment.

Within this three dimensional detachment you understand why Near-Zero interest rates no longer drive an expansion of the GDP. The Main Street economic engine is just too far away to gain any substantive benefit.

Despite their domestic origin in NY/DC, traditional monetary policies (over time) have focused exclusively on the Wall Street, Globalist economy. The Wall Street Economic engine was simply seen as the only economy that would survive. The Main Street engine was viewed by DC, and those who assemble the legislative priorities therein, as a dying engine, lacking fuel, and destined to be service driven only….

Within the new 3rd economic dimension, the distance between Wall Street and Main Street economic engines, you will find the data to reconcile years of odd economic detachment.

brexit-letter-1

Here’s where it gets really interesting. Understanding the distance between the real Main Street economic engine and the false Wall Street economic engine will help all of us to understand the scope of an upcoming economic lag; which, rather remarkably I would add, is a very interesting dynamic.

Think about these engines doing a turn about and beginning a rapid reverse. GDP can, and in my opinion, will, expand quickly. However, any interest rate hikes (monetary  policy) intended to cool down that expansion -fearful of inflation- will take a long time to traverse the divide.

Additionally, inflation on durable goods will be insignificant – even as international trade agreements are renegotiated, and/or as tariffs are applied. Why? Simply because the originating nations of those products are going to go through the same type of economic detachment described above.

Those global manufacturing economies will first respond to any increases in export costs (tariffs etc.), by driving their own productivity higher as an initial offset, in the same manner American workers went through in the past three decades. The manufacturing enterprise and the financial sector remain focused on the pricing because the consumer is the most important variable. Ultimately prices are determined by wages.

♦ Inflation on imported durable goods sold in America, while necessary, will ultimately be minimal during this initial period; and expand more significantly as time progresses and off-shored manufacturing finds less and less ways to be productive. Over time, durable good prices will increase – but it will come much later.

♦ Inflation on domestic consumable goods ‘may‘ indeed rise at a faster pace. However, it can be expected that U.S. wage rates will respond faster, naturally faster, than any monetary policy because inflation on fast-turn consumable goods become re-coupled to the ability of wage rates to afford them.

The monetary and fiscal policy impact lag, caused by the distance between federal monetary action and the domestic Main Street economy, will now work in our favor. That is, in favor of the middle-class.

Within the aforementioned distance between “X” and “Y”, a result of three decades traveled by two divergent economic engines, is our new economic dimension….

Trump thumbs up

We support reinstating the Glass-Steagall Act of 1933 which prohibits commercial banks from engaging in high-risk investment,” said the platform released by the Republican National Committee. (link)

/snip/

Notice how each of the most critical parts of that predictive outline from four years ago essentially became our reality as President Trump applied his ‘America-First’ agenda.

Now, here’s where it is going to get interesting again as we look forward another four years. 

In part II we will answer: How, specifically would Wall Street reset it’s evaluatory systems if Main Street once again emerged as the priority?… and I will outline how COVID-19 can be the spark to reset that evaluation system.

Dr. Fauci’s Mysterious Math – The Quantifying Today Reflects Where We Were A Week Ago – Today Cannot Be Quantified Until Next Week…


Let me say up front, there’s something very sketchy about the wordy explanations provided by CDC Director Dr. Fauci.  Listen/watch or read what he says below.

Encapsulating Dr. Fauci’s position:  Data on the coronavirus assembled today doesn’t reflect what is actually taking place today, but rather reflects where we were several days ago…. OK, that part makes sense (there’s a lag).

He then goes on to say what is actually happening today will not be included in data until we arrive at a place a few days from now when today’s reality is quantified.  Again, that reasonably makes sense…  However….

The media is/are reporting on coronavirus impacts in real time.  There is no delay in what the media are reporting from various places around the nation.  The media reporting reflects what is taking place today; right now… and what the media is reporting today is not worse than the data Fauci is explaining.

Meaning if Dr. Fauci was correct, and if the coronavirus data (the reports of spread) was behind by several days from the reality of today; then what the media would be reporting (the on the ground reality of the spread today) would be significantly worse (higher incidents) than Fauci’s data, which he claims is lagging several days behind….

The problem with that supposition – The media ground reports do not reflect a higher incidence of coronavirus spread than Fauci’s data today.

The concept of “flattening” the virus curve; the presumptive reason for social distancing; is based on a theory to extend the spread of COVID-19 to a lesser incident rate over a longer duration, thereby lessening the burden on the U.S. healthcare system.  Hence, ‘flatten’ the spike in infections.

Put another way: “Flattening” means the same number of people eventually contract the virus, only they do so over a longer period of time, and the healthcare system can treat everyone because the numbers do not rise to level where the system is overloaded.  In theory that seems to make sense.

However, no-one is asking: what is the current stress level on the healthcare system right now?  Where are we in that capacity?… and what is normal capacity level during a high-level flu outbreak?… and Where are we when compared against that baseline?

The premise to extend the virus duration in an effort to lower the infection rate and spread the virus over a longer period of time needs to measured against: (a) where the healthcare system is at any given moment; and (b) under traditional high-flu seasons where are we during those historic events.

♦ STRESS LEVEL – The healthcare ‘system’ per se, is expending an awful lot of time on mitigation efforts.  As Dr. Brix noted: the current negative test rate for coronavirus among those showing symptoms who are tested is 98 to 99 percent.  That means of all the people taking coronavirus tests, 98/99 out of 100 are symptomatic (they are sick) but they are not infected with coronavirus.  They are normal flu cases.

Our healthcare “system” is expending an incredible amount of resources on a mitigation effort.  According to Dr. Brix and the test results 99 percent of those mitigation efforts are not engaging with coronavirus.  They are dealing with regular flu (perhaps a strong flu).

If you extract the mitigation effort from the overall effort, the current stress level on the healthcare system doesn’t seem to be overwhelming.  What is stressing the system is a coronavirus mitigation effort with a rate of 99 percent testing negative.

♦ Dr. Fauci’s theory is self-fulfilling.

If the viral spread never exceeds the capacity of the healthcare system to deal with it, he can claim success.  Look, our flattened curve worked.

However, when contrast against flu outbreaks, no-one knows what the COVID-19 capacity threshold is within the healthcare system.  There’s no way to disprove Fauci’s theory.

Given the nature of the baseline for overall U.S. sanitation and hygiene, which is significantly higher than Italy, S-Korea and China; and given the higher standards of food safety (U.S. is the world leader); again significantly higher than Italy, S-Korea and China; and given the nature of the U.S. healthcare system (more capacity per person); is it really a fair comparison to overlay a COVID-19 outbreak, without also overlaying a traditional flu outbreak?

Any theory that cannot be scientifically tested; and is simultaneously self-fulfilling; is, by its nature, a false theory.

This is not to say that Dr. Anthony Fauci is intentionally misleading anyone; however, it is absolutely true that no-one will be able to quantify if trillions of dollars of economic wealth lost; and trillions more in economic activity lost; and trillions more in deficit spending; and that might all be done just to follow the fantastical whims of a doctor who is directing the mitigation of an ordinary flu-virus/season, and appears to be quite full of his own sense of self-importance.

98/99% negative test rate should alarm everyone.  We’ve shut down the biggest economic system in the world for a virus that is not appearing in 99% of the people who are sick.

DR. BIRX: Yeah. No, thank you, Mr. Vice President, for mentioning that because, as I told you, in South Korea there are 250,000-plus tests. About 96-plus percent were negative. So — and that was with symptoms.

So we’re working very hard integrating everything they have learned about symptoms and screening, and that is going into the development of this website. So it’s not just a simple checkbox website. It’s actually going to go through critical symptoms. And that’s why we’re giving ourselves the weekend to get it put up.

So far, in the United States, from LabCorp and Quest, they’re running about a 99 to 98 percent negativity. This always worries me because I’ve worked in public health a long time. When you tell someone they’re negative, yes, it’s reassuring, but the last thing we want is them so reassured that they stopped practicing these critical practices that are going to protect all of us.

This epidemic will be stopped at the community level. Those are the individuals — it’s Americans and their response that will get us over this hump. And that’s why, yes, we’ll have testing available. We’ll have to know that many of them are going to be negative, and you’re going to have to help us carry that message that that means, just at that moment, you’re negative, you need to continue to do all of your protection and protection of others to ensure you remain there. (read more)

♦ FACT: 98 to 99% of the American people tested, who have symptoms (similar to flu), test negative for the Wuhan novel coronavirus (COVID-19).  We are spending hundreds of billions, and disrupting all facets of life and liberty, to avoid a virus almost no-one carries.

Here’s SKETCHY Dr. Fauci’s explanation:

DR. FAUCI: Thank you very much, Dr. Birx. So just to connect with what I mentioned to you in previous discussions in this room — and Dr. Birx said it very well — that in order to be able to contain and curtail this epidemic to not reach its maximum capability, we have a two-pillar approach, one of which I believe has been very effective in preventing the substantial seeding, and namely the travel restrictions that we’ve discussed many times in this room.

The other, equally, if not more important, is when you have infection in your own country, which we do. And you know I could read the numbers, but they’re really, essentially, what we’ve seen yesterday: incremental increases, both globally as well as in the United States, with the curve doing that.

So therefore, the kinds of things that we do are containment and mitigation.

This — what we’re mentioning now — the guidelines, when you look at them carefully, I believe if the people in the United States take them seriously, because they were based on some rather serious consideration back and forth, some may look at them and say they’re going to be really inconvenient for people.

Some will look and say, well, maybe we’ve gone a little bit too far. They were well thought out.

And the thing that I want to reemphasize, and I’ll say it over and over again:

When you’re dealing with an emerging infectious diseases outbreak, you are always behind where you think you are if you think that today reflects where you really are. That’s not word speak.

It means:

If you think you’re here, you’re really here because you’re only getting the results; therefore, it will always seem that the best way to address it were to be doing something that looks like it might be an overreaction. It isn’t an overreaction. It’s a reaction that we feel is commensurate, which is actually going on in reality.

So take a look at the guidelines. Read them carefully. And we hope that the people of the United States will take them very seriously, because they will fail if people don’t adhere to them. We have to have, as a whole country, cooperate and collaborate to make sure these get done.

Thank you.

If the coronavirus spread never exceeds the capacity of the healthcare system to deal with it, he can claim success.  Look, our flattened curve worked.  However, we’ve also destroyed the U.S. economy to do so, and we’ve wiped out tens of trillions in U.S. wealth.

If Dr. Fauci’s magic theories are correct, then by THIS Friday there should be tens of thousands of people testing positive for Coronavirus.  If not….

Here’s the new Fauci recommendations:

Black Swan!


“Only thing we have to fear is fear itself”  FDR 1933

As I write this the Dow futures are down 1,200 points. Oil is down over 20 percent. Gold is way up—no wait, it’s going sideways and silver back down under $17. So much for safe havens. Precious metals are also considered commodities and are now treated as such. Everything is getting punished and many bubbles will get popped.

The coronavirus is the trigger that is causing the crash. It’s a crash that should have happened in 2008. Instead the banks were bailed out and even rewarded for their criminality with taxpayer-paid bonuses. Lower rates and never-ending QEs caused the stock market to skyrocket to outrageous highs. It seemed like it would only go up and the party would never end.

Now the party’s over. Debt is turning out the lights. There’s a huge amount of debt everywhere in the system. Everyone got way too greedy and overextended including the ChiComs. Some conspiracy theorists are saying they released the virus intentionally to do away with a few hundred surplus workers. Their economy was due to crash and they know the virus is a good distraction from that.

In America we have a $23, soon to be $24 trillion national debt. It’s so much that most ignore it as something meaningless. A billion is a number that’s difficult enough to comprehend. A billion minutes ago, Jesus walked the Earth. Every two hours, the US Government spends $1 billion. It’s all debt money, and the interest must be paid back to the Federal Reserve’s private central bankers. Maybe this crash will open eyes and we can finally jettison the vile system of money that has plagued hard-working US citizens for over 100 years. Our corrupt banking system also allows fractional reserve lending, which means more debt. Corrupt politicians have given the ’too big to fail’ big banks permission to become casinos and now they’ve run up over a quadrillion in derivative bets.

The average consumer is nearly maxed out on credit cards and paying the robber baron bankers an outrageous interest rate. The bankers create that ‘unsecured’ debt money out of thin air.

It’s all a con game. It’s all fake. Still, as Ayn Rand once said, “We can ignore reality, but we cannot ignore the consequences of ignoring reality.

We should have faced those consequences long ago. Hold on—we’re in for a rough ride that will be difficult to ignore.

—Ben Garrison

Chinese Factory Output Plummets – Total Jan/Feb Exports Drop 17.2% and Worsening…


Most people are aware the Wuhan coronavirus has become an economic contagion within China. However, the scale of the contraction is only now being quantified and the data doesn’t match the visible reality.

When evaluating the data showing drops in exports from China is worthwhile to consider the lack of visible supply-chain disruption formerly predicted by global economic “analysts”.  According to Reuters; to the extent data can be gathered from within a closed communist system; total exports from China dropped 17.2% in January and February.

The lack of factory production has cut the estimated growth rate within China by half.  However, is that a cause?  – or – Is that a cover?  For decades corporations have moved to a supply chain process known as Just-In-Time (JIT) inventory.

If Chinese component manufactured goods were part of a critical corporate supply chain, and with more than 30-days of source disruption quantified, there would be impacts by now. Where are the crippled customers?  There are no measurable, demonstrable, citations for missing component parts making downstream finished goods impossible.  There are lots of anticipatory declarations, but no shortage has materialized.

(Reuters) – China’s exports contracted sharply in the first two months of the year, and imports slowed, as the health crisis triggered by the coronavirus outbreak caused massive disruptions to business operations, global supply chains and economic activity.

The gloomy trade report is likely to reinforce fears that China’s economic growth halved in the first quarter to the weakest since 1990 as the epidemic and strict government containment measures crippled factory production and led to a sharp slump in demand.

Overseas shipments fell 17.2% in January-February from the same period a year earlier, customs data showed on Saturday, marking the steepest fall since February 2019.

[…] Imports sank 4% from a year earlier, but were better than market expectations of a 15% drop. They had jumped 16.5% in December, buoyed in part by a preliminary Sino-U.S. trade deal.

[…] Soybean imports in the first two months of 2020 rose by 14.2% year-on-year as cargoes from the U.S. booked during a trade truce at the end of 2019 cleared customs.  (read more)

Considering the previous questions; and evaluating what is visible – not theoretical; it seems far more likely the greatest impact from any Wuhan virus is an economic contagion internal to China.

Extending common sense, it seems more likely that Chinese consumption has stalled and dropped internal factory output, not necessarily a lack of export customers.   If the world was dependent on Chinese exports that have stopped, we would see these downstream consequences in real terms of missing products; right now. That is not happening.

However, if you consider that we are in year #3 of President Trump’s maximum pressure campaign against China; and you evaluate the numerous multinational moves that took place to avoid the preceding and purposeful Trump tariffs; there’s a strong argument to be made that China’s current condition is less about Wuhan, and more an outcome of visible consequence from the internal void created by Trump’s trade strategy.

There’s not enough solid data to gauge, and it doesn’t help when analysts are over-emphasizing the minutia, but it appears to me that what’s being reported within China, about China, is more about their own economic contraction than any adverse external influence upon their largely closed system.

If I’m right, China’s lack of internal consumption is the major influence contracting their economy; and the ‘lack of exports’ are being overblown to hide that internal contraction.

The internal contraction would be a natural outcome of President Trump’s confrontation with their economic model, which was indeed heavily dependent on exports.  No-one has been able to gauge an accurate number of multinationals who shifted their manufacturing as a consequence of Trump’s confrontation with Xi Jinping; but it would make sense the shift in manufacturing would be a direct impact inside China, starting an internal set of economic dominoes falling in a specific sequence, which would ultimately lead to a drop in Chinese workers being spend their wages.

Under this scenario the Coronavirus becomes a good cover story to explain an economic contraction that is actually not related…

PS.  Brazil is visiting Trump at Mar-a-lago.  Brazil is #2 in the world in the production of soybeans.  Brazil is also in BRICS (Brazil, Russia, India, China and South Africa).

Why We Need Immediate Changes to FISA Laws – A Video Encapsulation….


This is a fantastic and well-timed video that cuts to the heart of the matter.  John Spiropoulos has produced an exceptional video outlining the structural issues within the FISA process.  This video succinctly outlines the modern history of FISA abuse issues and highlights why we must use this critical moment to reform the FISA process.  WATCH:

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Share this video with those who need a fast encapsulation of the FISA issues at hand.

According to Senator Rand Paul, President Trump is committed to seeing that FISA is not reauthorized without “significant” reform.  Senator Paul has proposed to significantly change the FISA process by forcing the DOJ, FBI and Intelligence Community to apply for search and surveillance warrants to Title-3 courts in order to access any NSA database containing private information of American citizens.

Current FISA authority expires on March 15th.  The Senate is scheduled to go back into recess March 13, 2020.  Additionally, the DOJ/FBI response to the FISA court order (due February 5th) has still not been made public.  If congress is going to reauthorize the controversial FISA provisions, they now have nine days.

Prior to the December 9, 2019, inspector general report on FISA abuse, FISA Court judges Rosemary Collyer (declassified 2017) and James Boasberg (declassified 2019) both identified issues with the NSA bulk database collection program being exploited for unauthorized reasons.

For the past several years no corrective action taken by the intelligence community has improved the abuses outlined by the FISA court.

Also keep in mind the deadline for the DOJ to respond to the FISA court about the abusive intelligence practices identified in the Horowitz report was February 5th, more than four weeks ago. The responses from the DOJ and FBI have not been made public.

FISA Court Order – FISA Court Notice of Extension.

It appears the DOJ is trying to get the FISA reauthorization passed before the FISC declassifies the corrective action outlined from the prior court order. This response would also include information about the “sequestering” of evidence gathered as a result of the now admitted fraudulent and misrepresented information within the FISA applications.

The FISA “business records provision”, the “roving wiretap” provision, the “lone wolf” provision, and the more controversial bulk metadata provisions [Call Detail Records (CDR)], again all parts of the Patriot Act, must not be reauthorized without a full public vetting of the abuses that have taken place for the past several years.

The position being put forth by Rand Paul is exactly correct.  Change the law so that FISA can only be used against foreign actors, and force the DOJ or intelligence apparatus to go to a normal Title-3 court for a search/surveillance warrant against any American.

Bad Intel


The Intelligence Community’s lack of intelligence regarding the Middle East

Roach-BADINTEL_032020

Written and posted originally by Christopher Roach on MARCH 01, 2020 on the chronicles magazine

A pair of recent news items unintentionally demonstrated the ways the Intelligence Community is a primary source of our confused foreign policy in the Middle East, while also undermining President Trump here at home.

First, substantial doubts have arisen regarding the source and even the actuality of the 2018 gas attacks in Syria. These attacks allegedly took place in the Damascus suburb of Douma and were first publicized by the Soros-funded White Helmets. Later, the American Intelligence Community pinned the blame on Assad and the Syrian government. Rather swiftly, President Trump issued grave warnings about future attacks and our armed forces commenced modest, retaliatory bombing raids. Trump had directed a similar air strike after Syrian gas attacks were reported in 2017. In both cases, Trump’s commitment to reducing American engagement in the Middle East appeared to be in jeopardy. While his ideological fellow travelers, including Tucker Carlson and Ann Coulter, were very critical, these bombing attacks garnered praise from interventionists like Marco Rubio, Lindsey Graham, and Bill Kristol.

Like Russian interference and other tall tales from overseas intelligence agencies, it turns out the United States may have been had. According to leaked internal discussions that became public in November 2019, the Organization for the Prohibition of Chemical Weapons (OPCW) downplayed dissenting views in its initial report regarding the 2018 gas attacks. In the words of one of the investigators, the report “misrepresents the facts he and his colleagues discovered on the ground.” Notably, the original OPCW report never conclusively blamed the attack on the Syrian regime. It now appears in doubt whether chemical weapons were used at all.

Second, CNN recently aired a report involving Susan Gordan, who resigned from her position as Deputy Director of National Intelligence over the summer after being passed over for promotion. According to CNN:

One of President Donald Trump’s most common responses to intelligence briefings is to doubt what he’s being told, former Deputy Director of Intelligence Susan Gordon said Tuesday.…Trump had two typical responses to briefings. ‘One, “I don’t think that’s true,”’ Gordon told the Women’s Foreign Policy Group.… ‘and the other is the second order and third order effects. “Why is that true? Why are we there? Why is this what you believe? Why do we do that?” Those sorts of things.’

The CNN report and Gordon’s implicit criticism of Trump is rather telling. The ruling class sounds exasperated that the president would not simply go along with the Intelligence Community’s conclusions about the facts, nor follow their recommendations. With Syria in particular, it turns out Trump’s more general skepticism was well warranted.

The idea that the Syrian regime would court disaster and guarantee Western involvement by using chemical weapons in 2018, just as the remnants of the ISIS caliphate were being defeated, never made logical sense. That the Intelligence Community never apparently took seriously the possibility that the gas attacks were a false flag used by rebels (or some other interested party) to direct American forces against the Syrian regime shows remarkable credulity—or cynicism—among those whose job is to provide useful information to the president.

Bad intelligence has been the source of America’s follies in the Middle East stretching back to the 2003 Iraq invasion and earlier. It has confused America about its friends and enemies, has ignited some conflicts while prolonging others, and, in nearly every case, has failed to support a sound and sustainable foreign policy. Bad intelligence tends to agitate and redirect the focus of America’s leadership according to the policy goals of the Intelligence Community. Every American politician is sensitive to the risks elucidated by the intelligence agencies, regardless of their political views; no politician wants a failure like 9/11 on his watch.

Even America First nationalists realize the need to confront certain threats before they materialize or become unmanageable. American civilian leadership is very deferential to and dependent on the military and the Intelligence Community because of their access to information, technical expertise, and patriotic bona fides. The Intelligence Community—including foreign intelligence sources like Israel and Saudi Arabia—have exploited American power using these predictable dynamics.

Most dramatically, George W. Bush went to war in Iraq after his advisors lined up against Iraq and pointed to its continued and dangerous possession of Weapons of Mass Destruction (WMDs). The evidence was a “slam dunk,” in the words of then-CIA director George Tenet. More recently, in its efforts to encourage American military strikes, Israel nearly every year for the last decade said Iran is “six months away” from a nuclear weapon. Heightened tension with Iran nearly led to a war over a downed drone in early 2019. Moreover, predictions of geopolitical disaster and genocide have been used to pressure Trump into keeping American troops in Syria indefinitely, in spite of his repeatedly expressed desire to withdraw.

While it claims to be evidence-based and cautious, the Intelligence Community’s reliability and results are mediocre. In some cases, it gets things entirely wrong, as with Iraq’s WMDs. In others, it’s simply in the dark, as it was with the rapid collapse of the Warsaw Pact in 1989 or the fall of Iran’s shah in 1979, which somehow escaped the attention of our intelligence analysts until the events were front-page news. No doubt, this is partly a function of intelligence work being inherently difficult, as it involves predictions about the future in countries where we have limited understanding. But the predominant problems, especially in recent years, have arisen from ideological and institutional biases.

The Intelligence Community has policy preferences, and its intelligence reporting often is fashioned to support those preferences. After all, the Intelligence Community is just part of a larger foreign policy conglomerate. Career foreign policy advisors, professors, spies, and think tankers tend to profess a common worldview, and describing them as a “community” is accurate. The term sounds less threatening than “spy agencies,” and much of government truly functions as a type of community. The anonymously written Z Blog observed:

Washington is the natural evolution of the managerial class that evolved in the 20th century. People move to the area through one of the many on-ramps of the managerial state. Over time, they slowly become part of the ruling community that controls the imperial government.

Part of that community’s worldview is external. Following the Cold War, with little debate, a consensus emerged among both the left and neoconservative right that the U.S. should work to ensure its status as the “sole superpower” and that this power should be used in the service of “liberal hegemony.” In other words, the Deep State has worked to maintain the U.S. as the world’s most powerful country, has actively prevented the rise of competing powers, and has used its power to mold other countries’ internal affairs to resemble the culture and institutions of the U.S. This governing philosophy is sometimes called the New World Order, the rules-based international order, the post-war system, or some other euphemism—but it really means American dominance. For obvious reasons, this approach is very expensive, leads to a lot of conflict, does little to distinguish core from ancillary interests, and is not looked at very kindly by other nations, who have an understandably jealous regard for their own sovereignty.

What this means in practice can be seen in the Intelligence Community’s behavior when it thinks no one is looking. Having conducted spying operations on our allies and fomented color revolutions abroad, its sense of the sacredness of elections, even at home, is rather limited. In 2014, the CIA admitted that it illegally spied on U.S. Senate staff when the CIA’s torture activities were under congressional investigation. More recently, the CIA participated in an entrapment operation directed at minor figures in the Trump campaign for the purpose of enabling FBI wiretaps of the president and his inner circle.

The Intelligence Community’s interference with and manipulation of elected leaders domestically is not limited to heavy-handed interference with the Trump campaign. It preceded Trump and has been evident in various information operations against presidents already in office. Elected leaders depend on intelligence reports to make decisions, whether from the military, the FBI, or the CIA. If they defy the intelligence services, then a narrative of a president dangerously ignoring his top advisors frequently emerges, with outlets like CNN and The Washington Post dutifully passing on these propaganda leaks as news.

George W. Bush faced a maelstrom over the leaking of Valerie Plame’s identity as a CIA employee—the sacredness of CIA agents’ secret identities being a core value in the Imperial City. Obama also received criticism and leaks from the Pentagon when he was reluctant to expand forces in Afghanistan in 2009. Of course, leaks and direct defiance by the Intelligence Community have been the foundation of many of the attacks on President Trump, including those by fanatical former CIA Director John Brennan.

For the foreign policy mob, democracy is not a process of majority rule, but a smokescreen for pursuing a series of substantive ends: free trade, open borders, globalism, gay rights, and other objectives of the global ruling class. Thus, for them, the democratically elected president’s mandate is not to pursue popular policies like avoiding Mideast wars or putting up tariffs against China, but rather to support the policies that distinguish the ruling class from the rubes in Peoria.

The Intelligence Community also demands, and usually receives, acquiescence toward its more whimsical impulses: supporting Muslims in Serbia, while attacking Muslims in Yemen; or secreting crocodile tears for Ukraine’s anti-Russian coup, while ignoring atrocities by our allies in Yemen and Ossetia. Objectives that are popular and democratic, but not in tune with the preferences of liberal elites—Brexit in the UK, for example, or a border wall here at home—are simply labeled a “threat to democracy” in Orwellian fashion. Such things cannot be permitted, at home or abroad.

With so much off the table, our elected leaders become virtual figureheads, barely in charge of the government’s unelected bureaucracy, which is theoretically supposed to be an instrument that they control. President Obama was very popular with the managerial class, including the Intelligence Community, because he did not have the energy or inclination to upset the status quo. His transformation of government simply made it bigger, more prestigious, and better paid, all at a time when the rest of the country was limping through an economic crisis. Consider the fawning profile of President Obama from The New Yorker in 2012:

Each night, an Obama aide hands the President a binder of documents to review. After his wife goes to bed, at around ten, Obama works in his study, the Treaty Room, on the second floor of the White House residence. President Bush preferred oral briefings; Obama likes his advice in writing. He marks up the decision memos and briefing materials with notes and questions in his neat cursive handwriting.…A single Presidential comment might change a legislative strategy, kill the proposal of a well-meaning adviser, or initiate a bureaucratic process to answer a Presidential question.

If the document is a decision memo, its author usually includes options for Obama to check at the end.

The last sentence is revealing. Obama was the perfectly compliant figurehead, neatly accepting the limited options presented to him and marking off boxes without Trump’s insouciant skepticism. His suave, superficially intellectual style was the perfect camouflage for the Deep State and its prerogatives.

The Intelligence Community’s own ideology was apparent in their support for the Arab Spring. While the old-line WASP figures from the first generation of CIA leadership had concluded that secular dictators and kings were the best governments Americans could hope for in the Middle East, the new guard—more feminine, diverse, and Jewish, just like the Ivy League schools from which it was recruited—was full of optimism about the social revolution in the Arab world. Samantha Power announced a doctrine of “humanitarian war,” and Hillary Clinton reported her desire to be “caught trying.”

Humility and restraint were in short supply among the smart set. While Obama had expressed an encouraging skepticism of U.S. interventionism in his electoral campaign, here the Wilsonian impulse triumphed. He wanted to be on the “right side of history.” In short order, the wisdom of the old guard became apparent. Egypt elected an Islamist, Libya devolved into chaos where jihadists murdered an American ambassador, and a crisis in Syria showed that the Intelligence Community was incapable of learning from very recent history.

Even after the Libyan disaster—and America’s earlier failures in Iraq and Afghanistan—Obama approved intervention in the complex Syrian civil war, declaring in the name of the international community that the Assad regime needed to go. His CIA soon began sending aid and arms to the so-called moderate rebels. Republican globalists like Lindsey Graham and John McCain applauded Obama’s courage.

Contrary to the plan, Assad didn’t go. Instead, he and his government have fought a war since 2011 against dozens of opposition groups, including jihadists like al Nusra. Hundreds of thousands of refugees fled to Europe. A similar number died in the war itself. Christians faced genocide. ISIS rose and fell within the maelstrom. But the war and the regime have persisted right up to the present, having obtained new support along the way because of the Sunni jihadists’ fanaticism and barbarity.

Like the never-ending war in Afghanistan, the American interest in Syria only exists if you accept the paradigm of liberal hegemony ensured by American dominance. When the “international community”—the propaganda term the United States uses for itself when it really means business—demands Assad has to go, he is supposed to go, and go soon. This formula worked before in Tunisia, Egypt, Libya, and also in Panama, Liberia, Ukraine, Georgia, and Serbia. Assad’s persistence exposes the natural limits of American power. The Syrian regime’s refusal to disappear has created a big problem for that so-called international community.

Russia intervened in Syria, in part, because of a longstanding alliance, but also because Russia’s foreign policy has a predictable and limited aim: to ensure that America’s involvement does not inevitably lead to regime change. Russia is not pro-terrorist or fanatically anti-American. It gave permission for American overflights of former Soviet Republics after 9/11, and its military has cooperated with ours for “de-confliction” purposes in Syria to support our common fight against ISIS. But Russia’s aims are one reason the Syrian civil war had such high stakes, and also why our nation’s moral compasses went haywire in Syria, just as it had 20 years earlier in Kosovo. In both cases, America undermined its own claimed values by teaming with terrorists and jihadis to prove the inevitability and righteousness of the “international community’s” demands.

Trump did not accept this paradigm. Thus, he quickly made opposition to ISIS the primary mission objective in Syria. After all, unlike Assad, ISIS was directing attacks at home and in Europe and was perpetrating horrors beyond comprehension. American forces and their proxies succeeded in short order, aided by the tacit cooperation of Russian and Syrian forces, and unleashed from the restraints and contradictory objectives of the Obama administration. Under Obama’s purview, according to a 2016 report from the Los Angeles Times, CIA-armed rebels were fighting at one point with other rebels armed by the DoD.

Trump declared victory. He ordered forces to leave. They dragged their feet, and General James Mattis resigned in protest when Trump told him that he meant business. Soon, the panoply of varying objectives sought by different factions within the Intelligence Community were reasserted, all requiring an indefinite deployment of U.S. forces, each accompanied by increasingly dire warnings about the costs of noncompliance. “Like the war on drugs or the war on poverty, the war for the Greater Middle East has become a permanent fixture in American life and is accepted as such,” wrote Andrew Bacevich, a retired Army colonel and history professor at Boston University.

Trump ran for president in direct opposition to the legacy foreign policy common to both Democrats and Republicans. His overall policy was fundamentally nationalist, and thus his foreign policy was limited to specific and tangible issues directly related to national security and national flourishing. He expressed common-sense skepticism about many things, including our trading policies with China and our habitual animosity to Russia, but some of his strongest criticism was reserved for our involvement in Syria and the Middle East more generally.

Unlike many Republicans, Trump was always skeptical of the Iraq War. When he is unfiltered, he still expresses this view, as in a recent tweet:

The United States has spent EIGHT TRILLION DOLLARS fighting and policing in the Middle East. Thousands of our Great Soldiers have died or been badly wounded. Millions of people have died on the other side. GOING INTO THE MIDDLE EAST IS THE WORST DECISION EVER MADE…..

This stand was popular during the campaign and it is popular now. No amount of Washington Post sob stories about the stalwart Kurds have changed most Americans’ assessment of the matter. This is an issue that cuts across party lines, with both the Republican America Firsters and the Democratic Party’s peace caucus seeing no benefit from America’s efforts in the Middle East over the last four decades.

As with trade and immigration, Trump’s instincts were both politically and strategically correct. Unfortunately, he has not been fully consistent in this regard. In part, he himself is to blame for hiring individuals with polar opposite views, such as neoconservative John Bolton and establishment-approved Gen. Mattis. On the other hand, in Trump’s defense, appointees that shared his expressed worldview—such as Michael Flynn or Stephen Bannon—have been hobbled or run off. Now that the impeachment proceedings have concluded, Trump is only slowly getting a handle on the permanent bureaucracy, which has conducted a fierce counterattack against him since before he was sworn into office.

Trump’s presidency has been defined by conflict with the Intelligence Community. Indeed, their overreach during the 2016 election was something new and unusual in public life. They don’t want him in office and do not want to submit to accountability. They’re the vanguard of an aggrieved managerial class. While one thinks of the military and intelligence apparatus as being more conservative and hardheaded than, say, the Department of Justice or the Equal Employment Opportunity Commission, the collective culture of Washington, D.C., has a significant influence and significant degree of consensus. The whole town is full of ambitious conformists who have been preparing to sit before congressional committees since they were nine years old. They lack the dash, humanity, and personality of the Yale classicists who formed the CIA’s 1940s precursor, the Office of Strategic Services.

When Obama arrived, he promoted Intelligence Community figures like John Brennan and Jim Comey and military leaders like General David Petraeus and Admiral William McRaven. They shared the ideological outlook of the new administration, whether on gay rights, women in combat, or the wisdom of dubious campaigns in Syria. Having tasted political power, the left’s outlook has now become more aggressively statist than any time since FDR. The dominant rhetorical trope is to contrast the “patriotism” and “service” ethics of people who are paid six-figure incomes to enjoy fine dining in Paris and Buenos Aires with the atavism and anger of Trump and his “deplorable” base.

While movies portray the CIA as sophisticated and omnicompetent, in real life it turns out the Intelligence Community is made up of people like we saw in the impeachment hearings, such as Lt. Col. Alexander Vindman and former National Security Council official Fiona Hill: middlebrow, arrogant, liberal, unimaginative, and extremely concerned with preserving their managerial processes and imperatives. As defenders of a managerial system in which they are the elite, the various processes, reviews, and interagency discussions preserve the bureaucrats’ institutional and personal power. This method was demonstrated unwittingly by the “multiple choice” policymaking of Obama revealed in The New Yorker profile.

To the extent that the American people’s broad-based and bipartisan rejection of permanent war is to be given voice, the Intelligence Community needs to be brought to heel. Conservatives must recognize that the institutions they instinctually hold in high regard, the FBI, the CIA, and the military, are not merely part of the problem. They, or at least their leadership, are the primary problem. Trump’s nationalist and populist supporters hoped Trump would be able to take them on, but the tenacity and versatility of the “Resistance” has proven to be an enormous challenge. As Senator Chuck Schumer promised, “You take on the intelligence community—they have six ways from Sunday at getting back at you.”

The impeachment proceedings are simply the latest iteration of this resistance. After the Mueller probe went bust, the Ukraine scandal emerged from a whistleblower that worked for the CIA. The hearings were high managerial-class theater, featuring military officers, ambassadors, law professors, and other D.C. glitterati, who collectively have made it plain that they do not believe they are subordinate to the president, the American people—or anyone. They were supposed to wow us with their intellect and high-mindedness, but they really looked like hacks who lack the decency to be embarrassed by their preening self-regard and naked partisanship.

America’s foreign policy in the Middle East has been an enormous failure, a failure for which the Intelligence Community has not been significantly called to account. Straightfoward solutions like banning Muslim immigration have been ignored, while messianic ones like turning Syria into a functioning democracy are substituted in their place. Like Soviets sticking to their Five-Year Plans in the face of famines and penury, the nation’s spies have proceeded as if the disasters in Iraq, Syria, Libya, as well as the never-ending campaign in Afghanistan, were successes. The only thing surprising about a recent Washington Post exposé on the various lies told about our progress in Afghanistan is that anyone was surprised. It’s been apparent since 2002 that we were making no progress in Afghanistan, and that the place was simply a black hole in which American dollars and American lives were lost.

American foreign policy in the Middle East is inseparable from the Intelligence Community, which is just one arm of the permanent bureaucracy. Whether at home or abroad, they have proven to have a narrow and hubristic concept of American power, and their results have ranged from the mediocre to the terrible. Far from providing useful insight and sound predictions about the likely course of events, they either have ignored or downplayed real threats, like ISIS, or encouraged and managed foolhardy escapades like the arming of the so-called moderate rebels in Syria. Always missing from their report is a hardheaded account of Islam and the ways it is both prickly about foreign intervention and inimical to Western values like democracy or liberalism.

Not understanding the human terrain abroad, the Intelligence Community has also failed to understand the limits of the tools available from the homeland. While the U.S. Agency for International Development and the Peace Corps might think schools and clean water and elections will transform these regions, the U.S. military remains the primary tool. And it’s a blunt instrument that has often alienated more people than it manages to dispatch in its lumbering efforts of nation-building. Actionable intelligence is supposed to be intelligent. But here common sense and a rudimentary grasp of recent history—the kind candidate Trump and his voters had—are more than adequate to expose the “smart fools” behind recent events.

Before he ran for President, in 2013, Trump tweeted, “DO NOT ATTACK SYRIA—IF YOU DO MANY VERY BAD THINGS WILL HAPPEN & FROM THAT FIGHT THE U.S. GETS NOTHING!” There is more intelligence in that sentence than the mountain of reports and predictions emanating from the Intelligence Community.