Viewing Inflation Through Rose-Colored Glasses


Armstrong Economics Blog/Inflation Re-Posted Oct 18, 2021 by Martin Armstrong

Once “we get the pandemic under control, the global economy comes back, these pressures will mitigate and I believe will go back to normal levels,” Treasury Secretary Janet Yellen stated, echoing “transitory” sentiments by Fed Chairman Jerome Powell. Powell believes supply chain bottlenecks are the main culprit for inflation. Well, the Biden Administration appointed the secretaries of Commerce, Agriculture and Transportation to create a supply chain task force to fix the influx issues.

Sameera Fazili, a deputy director of the White House National Economic Council, stated, “Our approach to supply chain resilience needs to look forward to emerging threats from cybersecurity to climate issues.” Is climate change the issue here? Is this an indication of where the government will misdirect resources once again? Fazili further displayed how out of touch the government is with the current crisis by saying inflation due to supply shortages is “kind of [a] good problem to be having,” as it indicates demand. The countless number of businesses and consumers currently paying for basic living expenses at up to 30-year highs may not see the glass half full at the moment.

Then, the Biden Administration met with the workers at the Port of Los Angeles this week, where it was agreed upon that the port would operate 24/7 to address issues. Ports in Los Angeles and Long Beach, California, account for 40% of all shipments into the US, which seems to be a good start. Even Walmart, FedEx, and UPS have agreed to unload their shipments at non-peak hours to help the process. Oh, wait, the ongoing worker shortage. Companies are begging people to apply, and it remains to be seen whether the ports will be able to maintain proper staffing to run at full capacity around the clock. Then the need for a sufficient number of truck drivers becomes an issue as well. Even if the ports do reach full capacity, what about the spike in fuel prices? Energy prices have caused the price of transportation to skyrocket, which is then passed on to the consumer. The US government is approaching this issue from a domestic standpoint as well and not factoring in the reason why inflation and supply shortages are not limited to the US.

Socrates indicated that inflation could rally into 2034, and based on the current solutions, the computer will likely be correct once again. Perhaps we should all view inflation through rose-colored glasses and view the 5.4% YoY spike in September as “kind of a good problem to be having.”

The Psychology Behind Consumer Spending and Hedonic Adaptation


Armstrong Economics Blog/Behavioral Economics Re-Posted Oct 18, 2021 by Martin Armstrong

Consumer debt in the US reached $14.88 trillion in 2020, according to Experian’s consumer debt study. That is a $3 trillion increase in the past decade, and spending in 2021 has only amplified. Nearly 42% of US adults have reported falling deeper into debt since March 2020, and according to a survey by BankRate.com, 2,400 of 1,297 adults had credit card debt of which 47% contributed that debt to the pandemic. Credit card debt is difficult to crawl out from, with the average APR well above 16%. Even more alarming is that 54% of adults hold on to their credit card debt for at least a year, and with that rising interest, it will take years to pay it off (if ever).

Inflation is not deterring retail sales in the US. I have stated that other countries line up to sell their exports to America, making the US the top consumer economy, and the top economy overall as consumer spending accounts for two-thirds of GDP. Even with inflation up 5.4% YoY in September, retail sales spiked 0.7% despite analysts’ at the Dow predicting a -0.2% decline. Why?

Of course, people must spend to meet their basic living expenses, and those expenses have spiked in every area from food, energy, to real estate. However, there is additional spending occurring post-pandemic as optimism rises. People hoard when they fear the future. Without taking into account other factors, people are beginning to spend again because the easing restrictions and vaccinations has led them to believe that their future financial situations will brighten.

A study on the psychology of consumer spending points to interesting aspects of human nature (Carter T.J. (2014) The Psychological Science of Spending Money). “There is obviously the direct monetary cost, but also the opportunity cost: all of the other ways that one could have spent this money must now be foregone. Thus, a more psychological definition of the psychological act of spending money would be a simultaneous loss (of money and opportunity) and gain (of some good or service) for oneself and/or someone else that one chooses to undertake based on some beliefs about future hedonic states,” as noted by a 2014 study on consumer behavior (Bijleveld E., Aarts H. (eds) The Psychological Science of Money. Springer, New York, NY. https://doi.org/10.1007/978-1-4939-0959-9_10). The study found that the act of spending itself is “hedonically neutral,” and they used the analogy that “dropping $20 down a storm sewer would feel worse than finding $20 on the street would feel good.”

However, anticipated v anticipatory emotions come into play before acquiring new physical possession, be it a stock in your portfolio or a new iPhone in your pocket. On anticipation, we may feel a natural high as “we decide whether and how to spend money based on how we anticipate the various courses of action will make us feel.” (Mellers et al., 1999 ; Shiv & Huber, 2000). Anticipatory emotions are what we experience when we actually acquire the purchase (e.g., we may feel happiness after purchasing equity that we expect to profit on or guilty after buying a candy bar).

The study dissects consumers into different categories, but for the sake of keeping the blog post a reasonable length, let’s go right to the source – hedonic adaptation (e.g., after positive (or negative) events (i.e., something good or bad happening to someone), and a subsequent increase in positive (or negative) feelings, people return to a relatively stable, baseline level of affect (Diener, Lucas, & Scollon, 2006). “Focusing only on the immediate spike in happiness and ignoring the subse-quent [sic] decline means that the anticipated experience—the one on which people base their expectations, and thus, their decisions—may be quite different from the actual experience, increasing the chances of disappointment.” So, we may experience a short spike in dopamine after a purchase, but that high may wear off. The pain of payment affects all consumers, but interestingly, paying with a credit card temporarily mitigates the negative feelings associated with a payment:

“Cash payments are immediate and visceral—the money literally leaves your hands and becomes some-one [sic] else’s possession. Credit cards, on the other hand, are abstract and distant; they allow you to put off the pain of paying until next month, often while enjoying the benefit immediately. Spending money this way may seem painless, and almost certainly does reduce the negative anticipatory emotions that might prevent one from making a purchase, but it only forestalls the inevitable. When the end of the month rolls around and the credit card bill comes due, that pain may actually be magnified because the pleasure you experienced is already in the past.”

Cash transactions are becoming an ancient relic, and if the government had its way, we likely wouldn’t pay in cash at all. As online buying rises in popularity and people opt to pull out their plastic cards rather than physical paper, the initial cost of the purchase may not resonate. Retail therapy is in itself a hedonic act that may provide short-term happiness but often leads to buyers’ remorse when the purchase cost outweighs the benefits. It is important to note the risks associated with this move into a cashless society. The immediate impact of a purchase may not be felt for some time, at which it may be too late. As they say, when you’re in a (debt) hole, stop digging.

Stagflation is Here


Armstrong Economics Blog/Economics Re-Posted Oct 18, 2021 by Martin Armstrong

QUESTION: When do we talk about stagflation?

F

ANSWER: We are already experiencing it. Normally, the standard definition of “stagflation” has been explained as slow economic growth with relatively high unemployment/or economic stagnation that takes place with rising prices. Some have also defined it as a period of inflation combined with a decline in the gross domestic product (GDP).

Stagflation became a term that defined the 1970s because economic growth was still positive, but the rate of inflation was far greater due to the price shock of the OPEC embargo. Because of the Democrats constantly pushing to raise taxes, they sent corporations fleeing offshore, and it was NOT merely because of the tax rate. I testified before the House Ways & Means Committee on taxation and they wanted to know why NO American company got a contract from China like constructing the Yellow River Dam. I explained that German companies were NOT taxed on worldwide income, and as such, they were already 40% less than an American company because Americans pay taxes on worldwide income, and the ONLY other country to that was Japan. Thus, American companies moved offshore, NOT because labor was cheaper, but so they could complete.

As a result, I provided our analysis that showed when we allocated trade according to the flag of the company instead of where something was manufactured, then the US had a trade surplus instead of a trade deficit. Trump understood that and offered a one-time tax deal to bring their profits home. The Democrats screamed because they wanted 40% in taxes. But they would not bring the money home and so they got 0%.

Currently, as we move into 2024, this entire COVID scam has seriously disrupted the supply chain. Companies shifted to Just-In-Time inventory systems to save on financing an inventory. But then COVID lockdowns came and this resulted in chronic shortages.

So your answer is we are already in a STAGFLATION mode because inflation will surpass economic growth. With the dramatic tax increases the Democrats want to shove down the economy’s throat, all we will see is a decline in economic growth with rising prices thanks to chronic shortages. So we get the worst of two worlds.

The Democrats are deliberately pushing the World Economic Forum agenda and are actively trying to confiscate wealth while simultaneously crushing the economy to Build Back Better. Just like George Bush Jr took the blame for the Iraq war, which was all Cheney, Biden will go down in history as the patsy for this foreign infiltration of the United States to change our economy into a Marxist wonderland.

Lies, Lies & More Lies from the Financial Press


Armstrong Economics Blog/Press Re-Posted Oct 15, 2021 by Martin Armstrong

COMMENT: Marty; the Fed quietly published the banks it was funding in the Repo Crisis. I just wanted to say, you are always right. The press claimed it was tax time, but you said it was the crisis in European banks. Your sources are always spot on. Thanks for the light of truth.

PG

REPLY: Yes, that story that the liquidity crisis occurred because US corporations withdrew large amounts from the banks in order to make quarterly tax payments was the most absurd propaganda I ever heard. Why then do we not see the same liquidity crisis event during tax season?

The bulk of the loans covered foreign banks, as well as Goldman Sachs and JPMorgan Securities. It was all driven by the simple fact that Merkel said there would be no bailout for Deutsche Bank, which was the major derivatives counterparty problem involving Wall Street. Deutsche Bank had a major derivatives book, and if it failed, it would have taken down US banks. Deutsche Bank was in crisis and then it was too big to merge with Commerzbank. They had to lay off nearly 20,000 staff and a major effort was undertake to try to isolate its toxic assets.

That is why the Fed had to step in as the market maker to bail out Europe for US banks all backed off. I really do not know who makes up these stories to try to hide the truth. But they always do in hopes of preventing panics. This time, the game is up.

Inflation is Hitting Every Sector – Not Transitory


Armstrong Economics Blog/Hyperinflation Re-Posted Oct 13, 2021 by Martin Armstrong

COMMENT: All these increased demands for my product is great, but it comes with quite a wholesale flower prices have also increased significantly making the cost of the arrangements much higher. Wholesale rose prices have jumped 56%. Last year I could buy a pack of 25 roses for $18, where today they cost $28. I have to pass these costs onto my customers, but even with the increased cost people are still buying more flowers this year than the same time last year.

SH

REPLY: Thank you for this info. It is hard to find any industry that is not suffering from a shortage of supply.

September Jobs Report Badly Misses Expectations With 194,000 Jobs Created vs 500,000 Expected


Posted originally on the conservative tree house on October 8, 2021 | Sundance | 235 Comments

The Bureau of Labor Statistics (BLS) has released the September jobs report [DATA HERE] showing a dismal 194,000 jobs added against a financial media and Wall Street expectation of 500,000 jobs.  [CNBC Apoplectic]   The labor participation rate in the worker economy overall has not moved since Biden’s inauguration, and stands at 61.6%.

Digging into the numbers, what is happening is exactly what we ¹should expect.  Outside the immediacy of private sector durable goods retailers seeing a pull back in consumer purchasing due to inflation (which we continue to point out is the critical issue); the local economies impacted by a declining tax base are key early indicators of contracting economic activity.  Wage gains are not keeping up with inflation.

Inside the data, you will note [Table B-1] a significant decline in Local Government Education of -144,000 jobs.  Obviously the collapse of in-school teaching leads to less jobs in this sector overall. However, the drop happened at the exact same time students were returning to a new school year, and this drop is also reflected year-over-year.  Schools were impacted by COVID in Sept 2020 more than schools are impacted by COVID in Sept 2021, yet this year the jobs are completely gone.  Something bigger is happening in this sector.

Additionally, healthcare services show a major drop in employment (-37k) specifically as it relates to elderly care and nursing homes.   All the sub-sectors of elder care are significantly lower in employment.

Retail was essentially flat (+56k) considering the scale of the sector; and durable goods within the retail sector show declines in employment.  Again this would indicate less consumer spending on durable goods, as food and energy inflation are prioritizing spending habits.  Leisure and Hospitality (+74k) with hotels and restaurants doing the majority of the hiring as the rebound in this sector continues.

[¹Here it is important to note a slow cascade effect that will take time and we are not near the peak of the trouble yet. As a historic reminder, the epicenter of the peak financial crisis (housing) was triggered in Nov/December 2005.  However, the trouble was not visible on a national scale until 2007.    Economic data shows the current triggering event took place in May/June of this year.  Make of that what you will]

(CNBC) […] The U.S. economy created jobs at a much slower-than-expected pace in September, a pessimistic sign about the state of the economy though the total was held back substantially by a sharp drop in government employment.

Nonfarm payrolls rose by just 194,000 in the month, compared with the Dow Jones estimate of 500,000, the Labor Department reported Friday. The unemployment rate fell to 4.8%, better than the expectation for 5.1% and the lowest since February 2020.

[…] “This is quite a deflating report,” said Nick Bunker, economic research director at job placement site Indeed. “This year has been one of false dawns for the labor market. Demand for workers is strong and millions of people want to return to work, but employment growth has yet to find its footing.” (read more)

[INFLATION] is terrible for wage earners in the U.S. who are now seeing no wage growth and higher prices. Real wages are decreasing by the fastest rate in decades. We are now in a downward spiral where your paycheck buys less. As a result, consumer middle-class spending contracts. Eventually, this means housing prices drop because people cannot afford higher mortgage payments.

Gasoline costs more (+50%), food costs more (+10% at a minimum) and as a result, real wages drop; disposable income is lost. Ultimately this is the cause of Stagflation. A stagnant economy and inflation. None of this is caused by COVID-19. All of this is caused by economic policy and monetary policy sold under the guise of COVID-19.

The Squad Brings Islam to America


by Tabitha Korol

Rashida Tlaib, Ilhan Omar, and other squad members have been voted into representational positions, but they are not whom they profess to be.  Ungrateful for the opportunities, they are not here to Americanize, but to Islamize America, beginning with sowing the seeds of hate and discord.  Such is the purpose of the jihada.   

Saturday, September 11, 2021, was a time to reflect on the terrible tragedy that befell our country twenty years before.  As the never-ending grief resurfaces, we see that the qualities of sanctuary and personal freedoms that made America great have also attracted those who come with malice and villainy.  I am deeply troubled for those who fled from around the world with hopes for a better life, for they are finding here precisely what they escaped.      

Our homegrown communists and the new ingrates openly express their hostility.  Why stay, if this doesn’t suit you?  The ungracious people in the US Congress, particularly, have risen to positions that should be occupied by others more deserving.  One such is Ilhan Omar, who callously said of 9/11, “some people did something,” making light of the more than 3,000 Americans who died that day and later – the first responders, the cleaning crews, and the everyday Americans who ran through the streets, the debris underfoot and inhaling the ashes, hoping they might be of some help to another soul. 

Omar trivialized the attacks to erase the murderers’ Muslim identity, for they are her brethren.  She offered not a word of compassion and sorrow from the Muslim community to America.  She also wasted no time expressing her support of the anti-Semitic boycott-divestment-sanctions (BDS) movement and continues her numerous empty accusations against Israel, despite being called out for it on the Senate floor. 

Her disinformation campaign is given voice and validation; true or not, the damage is done.  Our school systems weaponize our own children; the textbooks elevate Islam over Judaism and Christianity, a Seattle high school canceled the 9/11 tribute so as not to offend – whom?  The indoctrination is pervasive.   Despite the Muslim terrorists’ martyrdom letters, our country aids in veiling their guilt.  Projection will eventually lay blame elsewhere.  The violence will continue on our streets, here and abroad, and they will topple the event as they did the buildings and much of our historic statuary.  

Rashida Tlaib and her squad use their positions to target charities that support the Jewish people.  They roll the truth on its head, artfully making themselves the victims, the protected class, inflating crimes against themselves, providing false statistics, and claiming they are denied basic rights.  The narrative is bogus, but effective.  Driving home their incessant suffering has resulted in more outspoken radicalized youth, increased voter and political participation, donations and volunteers. 

Tlaib squawked her earliest tirades when she entered the political scene.  She uttered undignified vulgarities in front of her son and America’s news viewers, yet asked to be treated with dignity.  The irony is lost on her.  She spews insults and animosity towards others, including then-President of the United States of America, Donald J. Trump, and cries out for death to Israel and the Jews.  

To herphony dismay, she was born in America, but to “Palestinian” parents, Muslims dedicated to viewing the world as Dar Al Islam (House of Peace) and Dar al Harb (House of War).  She lives in the latter, hoping to bring America to Dar al Islam.  Tlaib would rather be Palestinian, except that there is no Palestine;  the name lacks validity.  Palestine did not exist in the past and does not exist now.  She knows that the term is meaningless, and she is bitter.    

Another resentment she bears isthat the glory days of Islam are gone, overshadowed by the successes of the western world. If the Golden Age was due to Islamic wisdom, why is there no Golden Age now?  We know that Islam’s gloryconsisted of great tolerance, expression of opinion, critical thinking, questioning all things, and harmony between all people. Thenwhy does it no longer exist?  Al-Razi of Rhazes (Muhammad ibn Zakariyā Rāzī), 865 – 925, clarified that their splendor existed in spite of Islam,  not because of Islam.  It existed because of the scholars, scientists, physicians, inventors and navigators they captured from other cultures.  Judeo-Christian values are the antithesis of Islam. 

On the day of her swearing-in ceremony, Congresswoman Tlaib took her oath to serve our country and observe the Constitution – on the Quran.  Her binding vow was to Allah.  She was dressed not as an American, but in the garment of her heritage, revealing her allegiance to her Bedouin tradition, her descendance from the nomadic Arab tribes that inhabit the Arabian Peninsula, Iraq, the Levant, and North Africa.  These itinerants, divided into tribes or clans, had neither the ability nor desire to set down roots; their culture was camel or goat herding.  They never establish permanency and have no government, language, monetary system, or literature unique to themselves.  To this day, the Bedouins journey with their herds into Israel, attempting a temporary settlement on land that Israel may havepartitioned for agriculture, national  parks or wildlife sanctuary, but lacking infrastructure, is not zoned for residency.  They protest that they cannot do as they choose, and they attract lawyers who are eager to engage in lawfare – the misuse of the legal system to delegitimize Israel.       

Above all, Rashida Tlaib was raised as the traditional 330 million Muslims who believe in violence against Mohammed’s sworn enemies, the Jews and the Christians.  Their major source of unity is their hatred; the male child is trained from toddlerhood to dedicate his life to terrorism because of Quranic dictates and their social reality.  The jihadi’s world is chaotic, filled with anxiety.  His life is dark, devoid of love and the joy of creativity, his hatred so fueling that he is made eager to fight alongside others to the death – for martyrdom and the promise of untold sexual gratification in heaven. 

The boy is raised without individuality, a faceless, covered, and unidentified gang member, adept in using deadly weapons and prepared to become a human bomb himself.  Tlaib is the female counterpart, the jihada, who seeks to be elevated from her lowly rank to command respect.  In an average family, a mother generally uses an exaggerated intonation and rhythm when speaking to her baby, but in Islam, it is psychotic babble that prevails among the desperate in the shame-honor environment.  The mother’s frightening world consists of female genital mutilation (FGM), honor killings, weaponized children, and a marriage that has been described as a series of rapes interrupted by childbirth, and the baby reacts in confusion and chaos. The radicalized female devalues her own gender because she has internalized her position in an Islamic family.  What resentment might Rashida have borne as surrogate mother to 13 siblings?  She must demand respect because it was never freely given or earned.        

Some jihadas do gain status by planning killing operations or encouraging their own brothers and sons to martyrdom.  Some are more vulnerable because of recent widowhood or rape.  Tlaib is no suicide bomber, but she embraces the Palestinian narrative – to regain their “Palestine” from Israel at all costs.  Once that’s accomplished, everything else promises to fall into place.  It is only through scapegoating Israel that she may rise to gain nobility.   

As a jihada, she joined the Democrat Socialists of America (SDA).  She hosted a pro-Hezbollah activism group not long after her installation, and began posting her desires to destroy Israel and fundraise for families of Palestinian martyrs who already receive hundreds of millions of dollars from the Palestinian Authority’s “pay to slay” program.  Openly hostile, she and the squad press for a crippling, global financial campaign against Israel, but remain mute about the Palestinians’ deadly activities (incendiary weapons, knifings, rocket attacks) against Israel and Jews worldwide.  In what other culture might one spew hatred and death to others while still expecting to be treated with dignity?                 

Life for Palestinians in Gaza, Judea and Samaria is difficult, but she fails to discern the reason.  It is the warring diktats of the Quran, the terror of armed Al-Aqsa Martyr Brigades and other PLO terrorist groups in the “Palestinian cities,” and the children who have learned nothing but terrorism. The misery is self-inflicted.

                                                                              
The truth is that Hamas – not Israel – controls these people.  This criminal gang will continue tolead the Palestinians into chaos, explains Palestinian Bassam Eid.  Hamas incites the Palestinians that Israel will destroy their mosques, make their water unsafe to drink, cause their power to go out, and block their cement shipments.  All of this is untrue.  Israel does not sabotage their water or power, and it is Hamas that steals the cement shipments to construct terror tunnels into Israel.  Hamas also steals the humanitarian aid shipments from Israel and sells them on the black market.  Eid revealed that 15% of all rockets launched by Hamas hurts the Gazans, but Israel is blamed.  He added that Palestinians residing in four buildings in Sheikh Jarrah will be evicted because the titles were sold by Hamas – another of their betrayals.  Palestinians are mistreated only by their own leadership, including their clergy.   

The Palestinians and all observant Muslims have one guiding light – their religious duty to rule the world under Islam.  Their deeds, their lies, their activities, everything they do is for Islam and no amount of appeasement, signed documents, or transactions will ever change this until their Quran is changed and accepted by all of Islam.  This is why the clerics must keep the focus on Israel, for without Israel as their whipping boy, their people would come to identify their real enemy – their worthless heritage, religion and culture, and the violence that keeps them enraged.  It is far easier to coerce the rest of the world to share in their misery — and this is precisely what Tlaib wants for America.

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By Tabitha Korol

Democrats Go Insane on Taxes NYC 61.5% is Your Tax Rate!


Armstrong Economics Blog/The Hunt for Taxes Re-Posted Sep 13, 2021 by Martin Armstrong

The Democrats are simply insane. Every study on taxation has shown that the lower the tax rates, the greater the economic growth. The Reagan tax cuts resulted in people paying more in taxes because they earned more. The new tax hiked will push NYC to 61.5%. Anyone who lives there has got to be insane to stay. The Super-Rich set up trusts, foundations, and every sort of vehicle that skirts the high taxes. The Democrats always allow those because they themselves use the same tricks. Obama had little when he entered the office and now has a multimillion beach house when he was claiming the oceans were rising.

The one thing everybody better do is call your accountant. The Democrats CANNOT be this stupid. Raising taxes of this magnitude, going after businesses, and trying to end inheritance which is what they REALLY want to do – make it all now normal income, can set in motion the worse liquidation in modern history.

This is AOC wearing a dress to celebrate the occasion of trying to destroy society. She fails to understand that it takes money to start a business and to hire people. Under their plans from reliable sources, they really want to tear the country apart. They see nothing but hatred in capitalism for everything to them is just money. If you love what you do, you will be successful in life. If it’s just a job, then that is all it will ever be.

Twenty years ago if you bought a house you could just put your kid’s names on it as well – no big deal. Today, if you try that, they have to declare it as income and pay taxes on it which is not even cash. This is the new world order. You may have to sell assets this year and buy them back for selling next year of an accumulated profit may be devastating.

Sunday Talks, Hillary’s Favorite CIA Spook Admits The Taliban is al-Qaeda


Posted originally on the conservative tree house on September 12, 2021 | Sundance | 183 Comments

CTH outlines the connections, motives and intents behind the people in our government and the bastardized processes that are underway.  It is a labor of love to explain these inter-connected manipulations and provide clarity.  We do it because The Truth Has No Agenda, and once you see the strings on the marionettes,  you can never unsee them.

Before we get to this video interview [you only need to watch the first 90 seconds], it is important to remember the accurate and historic context for what is taking place.  That is how you see the dots connect.

When it comes to U.S. Foreign Policy – remember, there are fundamentally two factions within the United States government that are constantly creating havoc.  Those factions are represented in the Presidential Seal.  The arrows representing the military (Dept. of Defense) and the olive branch representing the Dept of State and Intelligence apparatus.  They work together creating the mess, but when SHTF they attempt to blame the other team.  In the Afghanistan mess you are seeing the battle between the two factions and their media conscripts.

♦ Team-1, White House, Pentagon and NatSec Council (Alphabet media and Fox News support).  ♦ Team-2, State Dept., CIA and Intelligence Community – The Intelligence Branch of Government – (CNN, CNNi, Washington Post, New York Times, Politico support).   Team-2 has been winning the blame game over Afghanistan.  Mike Morell is supporting Team Two’s effort.

Now watch the first 90 seconds of this interview with former Acting Director the CIA, Mike Morell.  Notice that he is suddenly breaking script from the official White House narrative and admitting publicly the Taliban is al-Qaeda.  WATCH:

Finally someone asks about Bin Laden’s #2 guy, Ayman al-Zawahiri.  CTH has been asking about this guy for months, since the Afghan mess blew up.  Some of you have noted there is a similarity between the Afghan outcome and the Libya/Egypt fiasco that led to the Benghazi attack.  You are correct.

When you look at the actual policy that was being executed, this is where you will find an almost identical outcome between Afghanistan and the former Libya mess.

Mike Morell was put into place by Barack Obama after the Benghazi attack took place.  In the aftermath of the attack; and with massive political issues about to happen; both Barack Obama and Hillary Clinton needed to remove CIA Director David Petraeus.  Again, falling back on the construct of the Intelligence Branch of Government – you will note that Obama used former Attorney General Eric Holder to investigate Petraeus under the auspices of a relationship with a journalist named Paula Broadwell {Go Deep}.

Attorney General Eric Holder investigated CIA Director David Petraeus for allowing journalist Paula Broadwell to see and know Petraeus’ scheduling calendar.  That calendar was the “classified information” leak that led to the framework to remove Petraeus.  It was a tenuous stretch but it worked.  Director of National Intelligence James Clapper told Petraeus he needed to step down.

That was how Mike Morell was installed as the Acting CIA Director with the goal to protect Hillary Clinton and Barack Obama from the outcome of covert missile sales to Libyan rebels, that were really al-Qaeda factions in eastern Libya (Beghazi).

The Defense Department (Secretary Bob Gates) did not want to arm the Libyan rebels, because he knew those missiles could be used against our forces.  The State Department, Hillary Clinton, and the CIA, Leon Panetta, conducted the missile sales despite the Pentagon admonitions and refusal to go along with it.  That covert arming of al-Qaeda (AQAP) was “Operation Zero Footprint”.

With the “olive branch” (State Dept/CIA) conducting the operation, the “arrows” (Pentagon) were in the dark.

President Obama was all-in to arm the Muslim Brotherhood (al-Qaeda is a faction); after all, the ‘Arab Spring’ was an ideological shift in the mid-east by the U.S. with the intention to support the Muslim Brotherhood.  The Arab Spring could not have happened without Obama supporting it.  In fact, Obama initiated it with his speech in Cairo Egypt, his first foreign trip.

When it became evident to Defense Secretary Bob Gates what Clinton and Panetta were doing, with Obama’s approval, the defense secretary stepped down.   Bob Gates did not want to participate in shifting the tenuous balance in the mid-east.  President Obama then replaced Bob Gates by moving Leon Panetta from CIA Director to defense secretary.  Panetta was replaced in the CIA by David Petraeus, with Operation Zero Footprint (arming Muslim Brotherhood factions) already taking place.

Everything taking place in Benghazi, Libya, in the fall of 2012 was an outcome of attempting to get the missiles back from al-Qaeda after Gaddaffi was overthrown.  Initially they were going to shift those missiles to the Muslim Brotherhood in Syria, but they lost control over the internal al-Qaeda factions in Syria (al-Nusra, ISIS) and quickly realized this was going to end up in a massively political mess (it was an election year).   Those missiles were showing up everywhere, including Afghanistan, and the U.S. military commanders on the ground had no idea where they were coming from.

It was the urgent shift in policy (Obama, Clinton, Panetta) from supporting al-Qaeda to now cutting them off from weapons they needed, that caused the Libyan al-Qaeda elements, to turn against Ambassador Chris Stevens and attack the compound in Benghazi.

Turkish Diplomat Consul General Ali Sait Akin made one last trip to see Ambassador Chris Stevens to ask him to support the Muslim Brotherhood in Syria by continuing with the agreement already in place.   When Stevens told him the U.S. policy had shifted, Ali Sait Akin left the Benghazi compound and within minutes the attack began.

The U.S. Generals had no idea what was happening in Benghazi because the entire operation was State Department and CIA.  The Pentagon was clueless.  When the contracted CIA security reached out for help during the Benghazi attack, the U.S. military -specifically AFRICOM General Carter Ham- was caught off-guard because they never knew about the Benghazi operations in the first place.

Can you see a parallel to what happened recently in Afghanistan?

The State Department, CIA and Intelligence Community (writ large), aka “Team-Two” were in charge of Kabul in an almost identical way they were in charge of Benghazi.  When they lose control and everything starts going sideways, and they come under terrorist attacks, they shift blame to the Pentagon (Team-One).

What Mike Morell is doing in that interview is protecting the intelligence system from which he came.   This is a similar motive he had for defending Hillary Clinton in the aftermath of Benghazi.

There is a stunning amount of hubris evident in Morell now when he admits the Taliban are al-Qaeda.   Essentially the State Dept/CIA now saying of course they knew the Taliban were al-Qaeda; which is only a position they take today out of their need to shift the blame for Afghanistan to the Pentagon and White House (remember, Biden is disposable).

The U.S. State Department, CIA and Intelligence Community are the Deep State.  They form the Fourth Branch of Government.

I’ll repeat it here, only because I know it makes Team Two flinch to read the truth….  The Taliban, al-Qaeda, al-Nusra, ISIS, ISIS-k, are all under the umbrella of the Muslim Brotherhood.

The defacto head of al-Qaeda, Ayman al-Zawahiri (pictured below left with Bin Laden), is being protected by the Taliban in Afghanistan.  Ayman is the brother of Mohamed al-Zawahiri (below right) who is he head of the Muslim Brotherhood.

Remember, CNN is the outlet for public relations for the U.S. State Department.  Most foreign governments view CNN as state media for the U.S. government, which is not an inaccurate way to look at them.

However, if you want to really connect the dots… watch this interview between CNN’s Nic Robertson and Muslim Brotherhood leader Mohamed al-Zawahiri, and notice the date of this interview.  This interview took place on September 10th, 2012.  One day before the Brotherhood launched the attack on the Benghazi compound.

Hope that helps.

We Remember September 11th, 2001


Posted originally on the conservative tree house on September 11, 2021 | Sundance | 37 Comments

The 20th anniversary of the attacks on 9-11 presents a day to reflect, remember and pay tribute to those we lost.   I am sure most of us remember exactly where we were at the moment we found out our nation was under attack by terrorists.  Our nation was forever changed by those moments on September 11th, 2001.

Perhaps we can share our memories together as we think about the 20th anniversary of this date.

Where were you on that day?  And what memories are most vivid for you?