Saturday, January 10, 2015

sharing.:::. How the Lightwork of the PAT Changed This World for the Better.:::. What is Color?

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Sharing:






How the Lightwork of 

the PAT Changed This 

World for the Better

 

An External Reality Check

by Georgi Stankov, January 10, 2015


www.stankovuniversallaw.com



When I write “PAT” I mean all the light warriors of the first and the last hour under Jerry’s definition of the True PAT. This includes also an unknown number of true PAT members that are not conscious members of the PAT or readers of this website or even aware of doing this heroic cleansing work for Gaia and humanity on a daily basis. They simply suffer:
Your experience of raising lower timelines upward, has been the common effort of many Light Warriors of the First and Last Hour, as you refer to them, although these warriors may not always notice this work as the Third Dimension continues to enforce its unrelenting pressures and distractions.The Elohim
But the effect of our light work is unmistakably evident at the beginning of this year amidst growing mayhem within the old Orion matrix. It is not a figment of our minds but a reality that more and more people begin to perceive. Hence the growing optimism of those ripe and old souls who are scheduled to ascend to the new 4D worlds and now feel the fresh breeze of this new reality:
By being yourself in total freedom, you will be the beacon you elected to be before entering earth in this lifetime and most likely, many others. This transition is far beyond anything you imagined lifetimes ago or even before you entered earth in this lifetime. Your new world is about to explode in fun and joy for you have climbed your mountain. You have surfed the waves. You have completed every difficult task set before you including energy surges and software uploads. Yet, you continued movement to your promised land on faith and some channeled messages.
You are about to explode into your new life. For after you climb your mountain, you gently roll down the other side in childish glee – reclaiming those pieces of you forgotten in this lifetime. This next wonderful phase is about claiming your totality. You are now probably thinking, “So what is new?” This phase is not the arduous climb up craggy mountains filled with snow and wild creatures that frightened you in your need to reach the top. But instead, reclaiming joy and self-love as you gleefully role and skip down the rolling hills to your promised land below.” Rolling, Rolling, Rolling.
Although I am hit again by a nasty cc-wave with a severe headache today, the fourth one in a row this week, I cannot help but being optimistic about what lies ahead of us. Too strong is the inner voice of my soul that whispers in my ear about the bliss that is awaiting us around the corner.
There are however different ways to make this transition. Today or tomorrow a true PAT member will leave this reality as his physical body could no longer cope with the heavy cleansing work on behalf of humanity and Gaia. Our love must go to this brave man and his faithful companion, another true PAT member, as you did once for Jerry when his beloved wife left this reality and ascended in spirit.
It truly needs an inhuman effort to be still optimistic amidst so much pain and human suffering. The only lifebelt I have in such moments is the all-pervading idea of our immortality as sentient beings.
Yes, we need every bit of optimism in these last days, thanks to Dmitry Orlov and other clear-sighted thinkers. The optimism we have created with our lightwork at expense of our health and well-being.
________________________
2015: Grounds for Optimism
Dmitry Orlov, January 6, 2015
http://cluborlov.blogspot.ca/2015/01/2015-grounds-for-optimism.html
This may seem like an odd line of reasoning to pursue given what everyone else seems to be saying. Some are thinking that 2015 will be a repeat of 2014 with a few incremental changes (always a safe bet, but makes for boring reading) while others are warning of the potential for a nuclear confrontation between the US and Russia (always a possibility, on par with an asteroid strike or a supernova in our galactic vicinity). But this is all more of the same. The interesting question to ask is, How has the ground shifted in 2014, if indeed it has?
To my mind, the really interesting development of 2014 is that the world as a whole (with a few minor exceptions) has become quite lucid on the topic of what the United States, as a global empire, is and stands for. It is now very commonly and completely understood that:
1. The United States is an evil empire, attempting not so much to rule the world as to disrupt it to its short-term advantage.
2. The United States is failing, as an empire and as a country, and no amount of fraud, mayhem, torture and murder is going to save it.
3. The United States is still quite powerful and can cause massive damage on its way down. This damage must be contained, while plans are drawn up for an international arrangement that will arise upon its demise.
Looking back on 2013 and before, such sentiments were already being expressed, but on the fringes and quietly. The difference is that in 2014 they became commonplace knowledge, and their expressions thundered from presidential podiums. What’s more, there just isn’t that much of a counterargument being voiced. I don’t hear a single voice out there arguing that the US is a benevolent force that is on the up-and-up, would never hurt a fly and is the permanent center of the universe. Yes, some people can still think that, but it’s hard to see value in such “thought.”
There are still a few holdouts: the UK, Canada and Australia especially. But even there the true picture is being distorted because of their Murdockified national media. Judging from what I hear from the people there, they are almost uniformly nauseated by the subservient pro-US antics of their national leaders. As for the EU, the image of political uniformity presented by Brussels is largely a fiction. In the core countries of Western Europe, business leaders are almost uniformly in favor of close cooperation with Russia and against sanctions. Along the fringe, entire countries appear to be on the verge of switching sides. Hungary—never a friend of Russia—now seems more pro-Russian than ever. Bulgaria, which has had a love/hate attitude toward Russia for centuries now, seems to be edging back closer to love. Even the Poles are scratching their heads and wondering if close cooperation with the US is in their national interest.
Another major shift I have observed is that a significant percentage of the thinking people in the US no longer trusts their national media. There is a certain pattern to the kinds of messages that can go viral and spread wildly via tweets and social media. Fringe messages must, by definition, stay on the fringe. And yet last year something snapped: a few times I ran a story in an attempt to plug a gaping hole in the US mass media’s coverage of events in the Ukraine, and the response was overwhelming, with hundreds of thousands of new readers showing up. What’s more, a lot of them have kept coming back for more. I take this to mean that what I have to say, while by no means mainstream, is no longer on the fringe, and that bloggers have an increasingly important role in helping plug the giant holes in national media coverage.
Of course, the national media still has an important role to play. For instance, I have no idea how big Kim Kardashian’s derrière is—but I hear it’s big in the media. Can it sing? And so if you are looking for authoritative information on that important subject, then American national media is your friend. But for most non-ass-related things, it seems to me that the Americans who run the nation’s political and media circuses broke a fundamental rule, which they apparently forgot, because it was first expressed by an American by the name of Abe Lincoln: “You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time.” In case somebody out there in the media realm is tired of playing it safe and printing stuff that’s only fit for wiping your Kardashian with, here are a some points for you to try to refute:
1. Economic inequality has to increase continuously, until the whole thing crashes, because that is the only way to continue propping the financial bubble while the real, physical, productive economy is actually shrinking. The rich can’t possibly spend all of their money in the real economy. Instead, the poor things have to content themselves with investing in various luxury items, which they can’t use all the same time, and so most of them sit and slowly decay. Or they put their money into paper wealth of various kinds—and that, of course, is very good for the financial bubble. In any event, if you have a financial bubble you need to prop up no matter what, in the face of serious physical limitations on land, energy, fresh water, high-grade ores and other essential industrial feedstocks, then your best bet is to do the reverse-Robin-Hood thing and go rob the poor and give to the rich.
2. Worldwide chaos must be driven up because that’s the only way the US military can justify its existence. It is a very expensive military, but not a particularly effective one. (Just the new F-35 fighter cost over a trillion to develop—and yet it is a complete dud of a project and may never even go into production.) But in spite of this lavish spending the US military is incapable of scoring a decisive victory in just about any conflict, against any adversary, no matter how weak and impoverished, and their end result is always some sort of ongoing low-grade conflict that can flare up again at any time. Nevertheless, it can still threaten the weak and the poor, and use these threats to its financial advantage. But the only way to make these threats effective is to destroy some country on a semi-regular basis: “Nice country you got there! We’d hate to see it go the way of Libya.” A military confrontation with any of the real military powers—Russia, China, India, even Iran—is, of course, entirely out of the question, because a single humiliating military defeat for the US (which is inevitable given its track record against smaller, weaker adversaries) would be sufficient to undermine the entire program of US militarism.
3. As another American (Dwight Eisenhower) once put it: “If you can’t solve a problem, enlarge it.” But it stands to reason that you do have to solve a problem once in a while; you can’t just go on enlarging every problem you see ad infinitum. Now, what problems has the US solved lately? Anything good happening in Iraq, Afghanistan, Libya, Syria or Ukraine? No, worse than ever. How about financial reform in the wake of the narrowly averted collapse in 2008? No, and there is another big one coming up in the form of the fracas in the fracking patch due to low oil prices. Anything good to report on health care reform? No, it’s more ridiculously bloated and expensive than ever. Student debt repayable now? No, not by a long shot. How about an effort to reduce carbon emissions, to postpone (no longer to avoid!) the eastern seaboard, where half of everything is, going underwater? No, not a glimmer of hope. Problems with runaway public debt or unfunded government liabilities solved? No, there have been no efforts in that direction at all. Is the country still on course for national bankruptcy and collapse? All systems check, go with throttle up!
Now, your mileage may vary, but I have discovered that a surprising number of people around the world (though not especially in the US) is now very much clued into these things. And that is something that makes me feel optimistic about 2015.


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French Police Commissioner Suicided After Attempting To Issue Murder Warrant Against President Obama


By Sorcha Faal, and as reported to her Western Subscribers, January 12, 2015

http://www.whatdoesitmean.com/index1831.htm

I cannot confirm the truthfulness of this information but in case it is true, and many indications speak for this alternative, then we may expect a deadly avalanche of revelations, beginning with this false flag attack in Paris that will trigger the rapid demise of the Western cabal and the beginning of our ascension. Hence charge this outcome with the

 decree using the Source flames

  independently of the event that will lead to the key revelation that the ruling cabal are the only true terrorists on this planet.

George
__________________________
An absolutely stunning Foreign Intelligence Service (SVR) report circulating in the Kremlin today appears to show why all top US officials failed to join their counterparts in Paris yesterday who marched in solidarity against the Charlie Hebdo Massacre as it reveals a top French police commissioner was “suicided” within hours of his attempting to obtain a European Arrest Warrant for President Barack Obama and other as yet unnamed American leaders.

According to this report, French police Commissioner Helric Fredou[Photo top left] was tasked immediately after the 7 January Charlie Hebdo Massacre with the examination of documents contained in a small backpack found in the getaway car used by the killers Saïd and Chérif Kouachi, and which contained the driver’s license/identity card of Saïd.

Also discovered by Police Commissioner Fredou in this small backpack, SVR analyst in this report say, were a number of “cryptic documents” and telephone numbers, one of the most important being a US cell-phone number “directly linked” to former US general and Central Intelligence Agency 

(CIA) director David Petraeus. [Photo 3rdleft]

Upon Police Commissioner Fredou’s discovery of this “Petraeus-link”, this report further states, SVR signals intelligence data show he contacted Paris prosecutor François Molins and requested that the Cour D’assises (Assize Court) issue an immediate European Arrest Warrant for President Barack Obama and “other” such American officials to be named within 24 hours.

Within 3 hours of Police Commissioner Fredou making this request, however, this report continues, his body was found by his desk in his office with a single gunshot to the head at 0100hr on Thursday 8 January that was quickly ruled a suicide; and Obama regime officials began flooding the US media with reports that former CIA director Petraeus was in danger of being arrested on felony charges relating to classified materials found in his mistresses possession.

Though this SVR report doesn’t explicitly state what evidence Police Commissioner Fredou discovered to make his unprecedented request to have the American President arrested, it does allude to a much larger conspiracy surrounding the Charlie Hebdo Massacre which not only involves Saudi Arabia, but also the CIA.

Most critical to note about the Charlie Hebdo Massacre, this report states, is that it occurred 48 hours after French President François Hollande, on 5 January, stated to the Obama regime that the Western sanctions against Russia must be immediately ended.

Equally important to note, SVR analysts in this report point out, are that French authorities had, also, been warned about an impending attack upon their nation on 4 January when Saudi Crown Prince Salman bin Abdulaziz Al Saud delivered the warning to French Defense Minister Jean-Yves Le Drian, and as we had previously reported on.
Also to be noted is that the SVR in their previous (7 January) report noted that the killers behind the Charlie Hebdo Massacre were terror operatives of the Islamic State of Iraq and the Levant (ISIS), a fact confirmed on 11 January when a martyrdom video of one of the killers named Amedy Coulibaly was released by ISIS. [Note: this previous report should be read as it provides needed context for this one.]

As France today begins to deploy an additional 10,000 troops throughout their country to (hopefully) forestall further attacks, and the West gears up for a fresh rampage across the war-scarred Middle East in response to this massacre, this report concludes, it should not be forgotten that the goal of Islamic violence is to bring down society’s fist on Europe’s Muslim minority – all the better to sweep them up into the waiting arms of al-Qaeda, the ISIS, or whatever form these fanatics invent.

But to who the real terrorist fanatics are, however, and according to the esteemed antiwar American author Justin Raimondo, one needs look no further than the corridors of Washington D.C., and of which he states:

My biggest fear is that we’ll all wake up one day to find that the monsters are right here, where they’ve always been. By then it will be too late to leash them and put them in their proper place, which is a zoo.”

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What is Color?

 

by Daniël Akkerman, January 9, 2015


www.stankovuniversallaw.com


Foreword

by Georgi Stankov


Daniel’s excellent and very informative essay on the basic physical and metaphysical concepts, such as colors, flames, chakras and energy gradients addresses a fundamental aspect of human cognition and creation, on which I would like to elaborate in a succinct manner here from a theoretical point of view.
As the Whole is a closed system that consists of U-sets (an U-set is a set that contains itself and the whole as element, the element being Energy = Primary Term = All-That-Is), the human mind, respectively the awareness of any sentient being has the ability and capacity to regroup such U-sets as parts of the Whole in an infinite, arbitrary manner. This is the wellspring of all Creation. The reason for that is that each individual consciousness (awareness) is an integral part (projection) or U-set of the Source and acts itself as an omnipresent creative awareness.
That is why each individual perception and cognition begins with the Primary Term of our human consciousness, which is a perception of the Whole. This first axiom of the new Theory of the Universal Law holds true for the limited human mind as well as for the most advanced cosmic awareness of an Elohim or Source. It is very important to comprehend this basic knowledge to the full extent with all its consequences and ramifications.
The common Primary Term we share with all other sentient beings throughout the Omniverse is the basis for any meaningful communication with them.
When an individual awareness begins to explore the omniverse or the limited 3D holographic reality, in which humans now live, this happens exclusively by building and regrouping various parts of it as U-sets in an entirely arbitrary manner. That is to say, there is always an arbitrary, consensual decision that certain complex phenomena, energetic events etc. are described as an entity with one single term.
For instance, we speak of “matter” as a single term and category, knowing that it consists of infinite complex molecules, atoms, electrons, elementary particles etc., and that each one of them has special properties and behaviour, and that each category builds an U-set of infinite order. For instance, the electron can represent a single particle or stands for all electrons in the universe because some of its properties, described as natural physical constants, are the same for all electrons in the universe. This is one major aspect of human cognition which Daniel discusses in his essay with respect to flames, colours and energetic gradients.
This is also the basis of all human languages and at the same time the biggest trap for human understanding, unless one has grasped the ontological and epistemological origin of human language as a linguistic system of divine knowledge and cognition. In this respect one must bear in mind that all science at present is essentially a categorical system, or an assembly of categorical systems, of linguistic terms that pertain to parts of the Whole and try to explain their intricate interrelationships. The nature of science as a linguistic categorical system has been presented and explained in a comprehensive manner by myself in the new Theory of the Universal Law.
What does this all mean with respect to the flames and colors that are now introduced on this earth and transform our reality in a profound manner? It means that, as Daniel discusses below, we can use a particular flame, such as the green flame as part of the visible spectrum or as a mighty energy gradient coming directly from the Source. Depending on our faculty for abstraction and our ability to associate maximal emotional intensities with this flame / gradient, we will be more or less successful creators.
The only limitation for our success is how the mind interprets and comprehends these flames, colours or energy gradients and how our human imagination employs them in our visions, which are the blueprints of any creation. All these flames are intelligent energies, they consist of intelligent subatomic units that can be shaped in infinite possible ways to achieve different degrees of perfection.
As the human mind was not created to be a sovereign creator per se, although it carries this potential, it must now operate with these flames in the absolute faith that they do exist and that they are the stuff with which we create. This is the absolute prerequisite for us to start creating now in physical bodies, while using our limited human carbon-based brains, before we have transfigured and ascended and have acquired our unlimited awareness, where we can perceive and use all these energies expediently at the subatomic, pre-quantum level for all our creationary activities. With that being said, enjoy now the superb essay of Daniel.
Essay
Commonly it is thought and taught that colors arise from photons with specific frequencies being detected by the eye. The visible spectrum is a very narrow energetic gradient in the range of 430-790 THz (= 10^12 Hz). The frequency supposedly determines what the color becomes.
But this frequency is one factor, and linearly increasing the frequency within the range is enough to completely change the colors we observe. And even within this narrow range of visible light, there are still millions of colors we can distinguish from each other.
The use of millions of colors would be impractical most of the time, so in fact there are many ways that the spectrum is described. There are very general ways to look at it, such as “cold and warm colors”, essentially grouping all those colors into two groups. There are other systems that work with three primary colors, and secondary colors are made by mixing.
Another one splits it into 7 groups. The colors of the rainbow are red, orange, yellow, green, blue, indigo, violet. There are many more of these systems as there are infinite ways to look at it, and looking at it holistically and multidimensionally means seeing all the ways simultaneously.
All these systems are basically the same thing. They describe a certain energetic gradient in various amounts of parts. The more parts the more accurate one can talk about specifics, although this also makes it more complicated.
This goes beyond just colors. For example in music it is common to speak of “highs, mids and lows”, “bass and treble”, and the octave is divided into 12 keys. This kind of ideas of describing energetic gradients exist everywhere, as everything is energetic gradients.
So, thinking that color is an inherent property of a material or frequency seems questionable. Back to the “rainbow system” that splits the visible spectrum in 7 colors. It is not 7 colors because the range we can observe can only contain 7 colors. It is because of the need to divide the range of visible light into several parts so that they can be mentioned specifically.
Kind of like analyzing a painting, you see there is a whole, but the painting is made of parts that also have individuality and can be looked at separately.
Imagine if suddenly our eyes were able to observe a larger spectrum than before. There would still be the need to group together the many possibilities, into larger groups that are similar to each other. We would see frequencies not seen before, that would look a lot different from what we see now, visually.
We would still be able to divide this spectrum in, say, 7 colors. Maybe the current visible light spectrum would in its totality be referred to by one term, and the other 6 colors would be previously-unseen spectra with they own unique properties. Of course it depends on how much the spectrum is extended.
This may be hard to imagine, but now also imagine the reverse. The visible spectrum becomes smaller so that we can only observe what we now call blue light. The blue light could be divided in 7 shades of blue.
The idea of color has become an absolute “between such and such wavelength” (bandwidth), in human language. But this is totally wrong; actually color is based on dividing a gradient in different parts based on ratios. What is defined as a particular color depends on the ratios chosen.
So the concept of colors and tones can be applied to any energetic gradient regardless of any factors such as how big it is. This is the foundation of synesthesia, and how it is possible to hear colors, see sound and the like. This is a valuable insight in understanding how it can be that the various “flames” from the source are associated with colors, while they must have frequencies far, far beyond the visible spectrum.
This concept of seeing the whole as a combination of different parts often results in ambiguity. Many new age people talk a lot about chakras, but does anyone really agree about how many there are? Speaking about 7 chakras used to be the norm, but then people started talking about new chakras. In reality there are infinite chakras, and increase in frequency leads to the need of describing the incarnated personality as energetic gradient in more detail.
Another way energetic gradients have often been described is by use of the four elements. The element of earth is commonly associated with the 1st chakra, with roots, grounding and the physical body. Water with the 2nd chakra and the causal or “ebb and flow”. Fire with the 3rd and 4th chakra, the heart and emotions. Air with the upper chakras, the mental level, “freedom” and various other ideas. Is the idea of the four elements not very similar to the idea of seeing the body as construct of physical, causal, emotional and mental? Different words for the same energetic concepts?
Taking a step back, let’s look at the whole of All-That-Is. Indeed we can also split it up into several “rays”, “dimensions” and so on. We often speak of 12 dimensions. When some parts are looked at individually, of course you must never forget their connection to the whole and that they are not separate from the other parts. The amount of parts you “split” All-That-Is into is kind of arbitrary, 7 rays, 12 dimensions, as long as it keeps describing the entire energetic gradient it is not incorrect. Splitting in more parts will increase the notion how specific each part is.
This act of splitting is not linear but highly multidimensional. If you mentally split an energetic gradient you will still never get absolutes. The parts themselves will still be energetic gradients, which may be split in the same (or different) manner. Then the same can be done to the parts and it continues infinitely this way in a fractal like manner.
No matter into how many sections a gradient is mentally divided, each of these parts are reflections of the same division applied to the whole. So if we imagine a 7 chakra system, each of the chakras correlates to one of the universal archetypes one would get by dividing the whole into a system of 7 (principle of self-similarity at each scale).
This means that the definitions of these flames, chakras and similar things are arbitrary and subjected to the free will of each sentient being in All-That-Is. This is another aspect of the unlimited potential for creation of any awareness, including the Source.
We are speaking in these last days about the introduction of the green flame. But there was already a green flame! We mentioned it often although it was not the central point of discussion. The ascension is an increase in frequencies of all systems pertaining to this holographic reality. As frequencies increase, these “new” flames seem to arrive. Meaning that the original gradient is expanded and acquires a new functionality; the increase in frequency of each particular flame means it approaches closer its universal archetype, thus increasing its power and abilities.
Years ago, at a time when I saw for the first time a book discussing the chakra system, I saw how it described the 1st chakra as “survival”. This description truly did not resonate with me. I then started to become aware of a process, that I was playing a role in, which raises the frequency of this 1st chakra to the next level. The chakra of “survival” became the chakra of “life”. Survival and life pertain to the same archetype, but life is of a much higher frequency in tune with the universal archetype. Life means that survival is a given.
We see now a similar situation, where the green flame is augmented and extends its healing capabilities far and wide, so that it is now a powerful tool capable of healing and decompartmentalizing the mind and the realm of thoughts.
As the ascension process progresses and frequencies are augmented, for example of our fields, the combined collective energetic gradient is also augmented, resulting in the “unlocking” (release) of flames and their higher overtones.
Back to the topic of rainbows, what about the rainbow bridge? Nobody has talked about this for some time. But I think there is an interesting pattern to look at.
At the beginning of our journey, a lot was focused on the chakra / rainbow system on the level of our local body. We activated, purified and healed our chakras on the individual level. Then this rainbow system appeared on a larger scale of the rainbow bridge. Now we are talking again about various flames which all represent various similar archetypes. It is as if we started on a local level, then expanded to a planetary level and now work on a universal scale with regards to these flames.
This also fits into the narrative of how we first accomplished our individual ascension, and our individual ascensions are an important part of Gaia’s ascension. The scale then increased one more time to encompass the whole golden galaxy which we co-create.
Actually I think that understanding how these flames relate to us is an important aspect of being able to use them to charge our creations with their energetic power. How do they relate to the chakras? If we would look at the collective of all these flames they combine into one energetic gradient. The same is true for the chakras. The flames from the source must be in part analogous to the collective field of our chakras, amplified by various energy sources, such as the great central sun Alcyone, excarnate ascended masters, angels and other forces of light. Although of course these sources are not really separate.
General themes/colors/tones of the ascension process can be predicted and expected with regards to what new frequencies/flames are being introduced.
So the chakras and flames are essentially the same concept, just at different levels. They resemble the same archetypes. By looking into this in more depth and linking the various flames to chakras, you may integrate them into your creation. Your personal chakras represent a part of the whole spectrum of flames, and with this knowledge that you are linked to the whole, you can personally use the power of the collective and universal energies for your creations.
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External Reality Check: The 

Ascension Scenario of the PAT 

for This Timeline Is Beautifully 

Unfolding 

 

Oil Price Blowback: Is Putin 
Creating A New World Order 

(of 

the Light)?

By Mike Whitney, January 7th, 


2015


http://emergingequity.org/2015/01/07/oil-price-blowback-is-putin-creating-a-new-world-order-oped/


“If undercharging for energy products occurs deliberately, it also effects those who introduce these limitations.


Problems will arise and grow, worsening the situation not only for Russia but also for our partners.” – Russian President Vladimir Putin


Putin Oil


It’s hard to know which country is going to suffer the most from falling oil prices. Up to now, of course, Russia, Iran and Venezuela have taken the biggest hit, but that will probably change as time goes on. What the Obama administration should be worried about is the second-order effects that will eventually show up in terms of higher unemployment, market volatility, and wobbly bank balance sheets. That’s where the real damage is going to crop up because that’s where red ink and bad loans can metastasize into a full-blown financial crisis. Check out this blurb from Nick Cunningham at Oilprice.com and you’ll see what I mean:


According to an assessment from the Federal Reserve Bank of Dallas, an estimated 250,000 jobs across eight U.S. states could be lost in 2015 if oil prices don’t rise. More than 50 percent of those job losses would occur in Texas, which leads the nation in oil production.

There are some early signs that a slowdown in drilling could spread to the manufacturing sector in Texas… One executive at a metal manufacturing company said in the survey, “the drop in crude oil prices is going to make things ugly… quickly.” Another company that manufactures machinery told the Dallas Fed, “Low oil prices will drive reductions in U.S. drilling rigs, which will in turn reduce the market for our products.”

The sentiment was similar for a chemical manufacturer, who said “lower oil prices will adversely impact margins. Energy volatility will cause our customers to keep inventories tight.”

States like Texas, North Dakota, Oklahoma, and Louisiana have seen their economies boom over the last few years as oil production surged. But the sector is now deflating, leaving gashes in employment rolls and state budgets.” (Low Prices Lead To Layoffs In The Oil Patch, Nick Cunningham, Oilprice.com)
Of course industries lay-off workers all the time and it doesn’t always lead to a financial crisis. But unemployment is just one part of the picture, lower personal consumption is another. Take a look:

“Falling oil prices are a bigger drag on economic growth than the incremental “savings” received by the consumer…..Another way to show this graphically is to look at the annual changes in Personal Consumption Expenditures (PCE) in aggregate as compared to the subsection of PCE spent on energy and related products. This is shown in the chart below.


Lower Energy Prices To Lower PCE (Personal Consumption Expenditures):


unnamed


See? So despite what you might have read in the MSM, lower gas prices do not translate into greater personal consumption or more robust growth. Quiet the contrary, they tend to intensify deflationary pressures and reduce activity which is a damper on growth.

Then there’s the knock-on effects that crashing prices and layoffs have on other industries like mining, manufacturing and chemical production. Here’s more from Oil Price:


“Oil and gas production makeup a hefty chunk of the “mining and manufacturing” component of the employment rolls. Since 2000, when the oil price boom gained traction, Texas has comprised more than 40% of all jobs in the country according to first quarter data from the Dallas Federal Reserve…
The majority of the jobs “created” since the financial crisis have been lower wage paying jobs in retail, healthcare and other service sectors of the economy. Conversely, the jobs created within the energy space are some of the highest wage paying opportunities available in engineering, technology, accounting, legal, etc. In fact, each job created in energy related areas has had a “ripple effect” of creating 2.8 jobs elsewhere in the economy from piping to coatings, trucking and transportation, restaurants and retail….
The obvious ramification of the plunge in oil prices is that eventually the loss of revenue will lead to cuts in production, declines in capital expenditure plans (which comprise almost 1/4th of all capex expenditures in the S&P 500), freezes and/or reductions in employment, and declines in revenue and profitability…
Simply put, lower oil and gasoline prices may have a bigger detraction on the economy than the “savings” provided to consumers.” (The Gasoline Price Myth, Lance Roberts, oilprice.com)
None of this sounds very reassuring, does it? And yet, all we hear from the media is how the economy is going to reach “escape velocity” on the back of cheap oil. Nonsense. This is just more “green shoots” baloney wrapped in public relations hype. The fact is, the economy needs the good-paying jobs more than it needs low-priced energy. But now that prices are tumbling, those jobs are going to disappear which is going to be a drag on growth. Now check out these headlines I picked up on Google News that help to show what’s going on off the radar:
“Texas is in danger of a recession”, CNN Money.
“Texas Could Be Headed for an Oil-Fueled Recession, JP Morgan Economist Says”, Wall Street Journal “Good Times From Texas to North Dakota May Turn Bad on Oil-Price Drop”, Bloomberg
“Low Oil Prices in the New Year Are Screwing Petrostates”, Vice News
“Top US Oil States Are Taking A Hit From Plunging Crude Prices”, Business Insider
Get the picture? If oil prices continue to fall, unemployment is going to spike, activity is going to slow, and the economy is going tank. And the damage won’t be limited to the US either. Get a load of this from the UK Telegraph:
“A third of Britain’s listed oil and gas companies are in danger of running out of working capital and even going bankrupt amid a slump in the value of crude, according to new research.
Financial risk management group Company Watch believes that 70pc of the UK’s publicly listed oil exploration and production companies are now unprofitable, racking up significant losses in the region of £1.8bn.
Such is the extent of the financial pressure now bearing down on highly leveraged drillers in the UK that Company Watch estimates that a third of the 126 quoted oil and gas companies on AIM and the London Stock Exchange are generating no revenues.
The findings are the latest warning to hit the oil and gas industry since a slump in the price of crude accelerated in November when the Organisation of Petroleum Exporting Countries (Opec) decided to keep its output levels unchanged. The decision has caused carnage in oil markets with a barrel of Brent crude falling 45pc since June to around $60 per barrel.” (Third of listed UK oil and gas drillers face bankruptcy, Telegraph)
“Carnage in oil markets,” you say?
Indeed. Many of the oil-drilling newcomers set up shop to take advantage of the low rates and easy money available in the bond market. Now that prices have crashed, investors are avoiding energy-related junk bonds like the plague which is making it impossible for the smaller companies to roll over their debt or attract fresh capital. When these companies start to default en masse, as they certainly will if prices don’t rebound, the blowback will be felt on bank balance sheets across the country creating the possibility of another financial meltdown. (Now we ARE talking about a financial crisis.)
The basic problem is that the banks have bundled a lot of their dodgy debt into financially-engineered products like Collateralized Loan Obligations (CLOs) and Collateralized Debt Obligations (CDOs) that will inevitably fail when borrowers are no longer able to service the loans. The rot can be concealed for a while, but eventually, if prices don’t recover, a significant number of these companies are going to go under which will push the perennially-undercapitalized banking system to the brink once again. That’s why Washington’s plan to push down oil prices (to hurt the Russian economy) might have made sense on a short-term basis (to shock Putin into submission) but as a long-term strategy, it’s nuts. And what’s even crazier, is that Obama has decided to double-down on the same wacky plan even though Putin hasn’t given an inch. Check this out from Reuters on Monday:
“The Obama administration has opened a new front in the global battle for oil market share, effectively clearing the way for the shipment of as much as a million barrels per day of ultra-light U.S. crude to the rest of the world…
The Department of Commerce on Tuesday ended a year-long silence on a contentious, four-decade ban on oil exports, saying it had begun approving a backlog of requests to sell processed light oil abroad.
The action comes at a critical juncture for the global oil market. World prices have halved to less than $60 a barrel since the summer as top exporter Saudi Arabia, once a staunch defender of $100 oil, refused to cut production in the face of surging U.S. shale output and tempered global demand…
With global oil markets in flux, it is far from clear how much U.S. condensate will find a market overseas.”
(Analysis – U.S. opening of oil export tap widens battle for global market, Reuters)
Does that make sense to you, dear reader? Why would Obama suddenly opt to change the rules of the game when he knows it will increase supply and push prices down even further? Why would he do that? Certainly, he doesn’t want to inflict more pain on domestic producers, does he?
Let’s let Obama answer the question for himself. Here’s a clip from an NPR interview with the president just last week. About halfway through the interview, NPR’s Steve Inskeep asks Obama: “Are you just lucky that the price of oil went down and therefore their currency collapsed or …is it something that you did?
Barack Obama: If you’ll recall, their (Russia) economy was already contracting and capital was fleeing even before oil collapsed. And part of our rationale in this process was that the only thing keeping that economy afloat was the price of oil. And if, in fact, we were steady in applying sanction pressure, which we have been, that over time it would make the economy of Russia sufficiently vulnerable that if and when there were disruptions with respect to the price of oil — which, inevitably, there are going to be sometime, if not this year then next year or the year after — that they’d have enormous difficulty managing it.” (Transcript: President Obama’s Full NPR Interview)
Am I mistaken or did Obama just admit that he wanted “disruptions” in the “price of oil” because he figured Putin would have “enormous difficulty managing it”?
Isn’t that the same as saying that it was all part of Washington’s plan; that plunging prices were just the icing on the cake for their asymmetrical attack on the Russian economy? It sure sounds like it. And that would also explain why Obama decided to allow domestic producers to dump more oil on the market even though it’s going to send prices lower. Apparently, none of that matters as long as the policy hurts Russia.
So maybe the US-Saudi oil collusion theory isn’t so far fetched after all. Maybe Salon’s Patrick L. Smith was right when he said:
“Less than a week after the Minsk Protocol was signed, Kerry made a little-noted trip to Jeddah to see King Abdullah at his summer residence. When it was reported at all, this was put across as part of Kerry’s campaign to secure Arab support in the fight against the Islamic State.
Stop right there. That is not all there was to the visit, my trustworthy sources tell me. The other half of the visit had to do with Washington’s unabated desire to ruin the Russian economy. To do this, Kerry told the Saudis 1) to raise production and 2) to cut its crude price. Keep in mind these pertinent numbers: The Saudis produce a barrel of oil for less than $30 as break-even in the national budget; the Russians need $105.
Shortly after Kerry’s visit, the Saudis began increasing production, sure enough — by more than 100,000 barrels daily during the rest of September, more apparently to come…
Think about this. Winter is coming, there are serious production outages now in Iraq, Nigeria, Venezuela and Libya, other OPEC members are screaming for relief, and the Saudis make back-to-back moves certain to push falling prices still lower? You do the math, with Kerry’s unreported itinerary in mind, and to help you along I offer this from an extremely well-positioned source in the commodities markets: “There are very big hands pushing oil into global supply now,” this source wrote in an e-mail note the other day.” (“What Really Happened in Beijing: Putin, Obama, Xi And The Back Story The Media Won’t Tell You”, Patrick L. Smith, Salon)
Vladimir Putin: Public Enemy Number 1
Let’s cut to the chase: All these oil shenanigans are really aimed at just one man: Vladimir Putin. There are a number of reasons why Washington wants to get rid of Putin, the first of which is that the Russian president has become an obstacle to US plans to pivot to Asia. That’s the main issue. As long as Putin is calling the shots, there’s going to be growing resistance to NATO’s push eastward and Washington’s military expansion across Central Asia which could undermine US plans to encircle China and remain the world’s only superpower. Here’s an excerpt from Zbigniew Brzezinski’s The Grand Chessboard which helps to explain the importance Eurasia is in terms of Washington’s global ambitions:
“..how America ‘manages’ Eurasia is critical. A power that dominates Eurasia would control two of the world’s three most advanced and economically productive regions. A mere glance at the map also suggests that control over Eurasia would almost automatically entail Africa’s subordination, rendering the Western Hemisphere and Oceania (Australia) geopolitically peripheral to the world’s central continent. About 75 per cent of the world’s people live in Eurasia, and most of the world’s physical wealth is there as well, both in its enterprises and underneath its soil. Eurasia accounts for about three-fourths of the world’s known energy resources.” (p.31) (Zbigniew Brzezinski,The Grand Chessboard: American Primacy And It’s Geostrategic Imperatives, Key Quotes From Zbigniew Brzezinksi’s Seminal Book)
Get it? Prevailing in Asia is the administration’s top priority, which is why the US is rapidly moving its military assets into place. Check this out from the World Socialist Web Site:
“Under Obama’s “pivot to Asia,” the Pacific Command will account for more than 60 percent of all US military forces, up from 50 percent under the Bush administration. This includes new US basing arrangements in the Philippines, Singapore and Australia, as well as renewed close military ties to New Zealand, and ongoing US military exercises in Thailand, Malaysia, Indonesia and Taiwan….(as well as) large troop deployments in Japan and South Korea, including nuclear-armed units.” (The global scale of US militarism, Patrick Martin, World Socialist Web Site)
The “Big Shift” is already underway, which is why obstacles have to be removed and Putin’s got to go.
Second, Putin has made himself a general nuisance vis a vis US strategic objectives in Syria, Iran and Ukraine. In Syria, Putin has thrown his support behind Assad who the US wants to topple in order to redraw the map of the Middle East and build gas pipelines from Qatar to Turkey to access the lucrative EU market.
Third, Putin has strengthened a number of coalitions and alliances –the BRICS bank, the Eurasian Economic Union, and the Shanghai Cooperation Organization–all of which pose a challenge to US dominance in the region as well as a viable alternative to neoliberal financial institutions like the IMF and World Bank. Going back to Brzezinski’s “chessboard” once again, we see that the US should not feel threatened by any one nation, but should be constantly on-the-lookout for “regional coalitions” which could derail its plans to rule the world. Here’s Brzezinski again:
“…the three grand imperatives of imperial geostrategy are to prevent collusion and maintain security dependence among the vassals, to keep tributaries pliant and protected, and to keep the barbarians from coming together.” (p.40)
“Henceforth, the United States may have to determine how to cope with regional coalitions that seek to push America out of Eurasia, thereby threatening America’s status as a global power.” (p.55) (Zbigniew Brzezinski,The Grand Chessboard: American Primacy And It’s Geostrategic Imperatives, Key Quotes From Zbigniew Brzezinksi’s Seminal Book)
As a founding member and primary backer of these organizations, (and initiator of giant energy deals with China, India and Turkey) Putin has become Washington’s biggest headache and a logical target for regime change.
Finally, Putin is doing whatever he can to circumvent dollar-denominated business and financial transactions. The move away from the buck is a direct attack on the US’s greatest source of power, the ability to control the de facto international currency and to require that other nation’s stockpile dollars for their energy purchases which are then recycled into US financial assets, stocks bonds and US Treasuries. This petrodollar-recycling scam allows the US to run gigantic current account deficits without raising interest rates or reducing government spending. Putin’s anti-dollar policies could diminish the greenback’s role as reserve currency and put an end to a system that institutionalizes looting.
This is why Putin is Public Enemy Number 1. It’s because he’s blocking the US pivot to Asia, strengthening anti-Washington coalitions, sabotaging US foreign policy objectives in the Middle East, creating institutions that rival the IMF and World Bank, transacting massive energy deals with critical US allies, increasing membership in an integrated, single-market Eurasian Economic Union, and attacking the structural foundation upon which the entire US empire rests, the dollar.
Naturally, Washington’s powerbrokers are worried about these developments, just as they are worried about the new world order which is gradually taking shape under Putin’s guidance. But, so far, they haven’t been able to do anything about it. The administration’s regime change schemers and fantasists have shown time-and-again that they’re no match for Bad Vlad who has beaten them at every turn.
Bravo, Putin.
This article was originally published on Counterpunch
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