Posts tagged India
More Misleading Official Employment Statistics
The payroll jobs report for November from the Bureau of Labor Statistics says that the US economy created 203,000 jobs in November. As it takes about 130,000 new jobs each month to keep up with population growth, if the payroll report is correct, then most of the new jobs would have been used up keeping the unemployment rate constant for the growth in the population of working age persons, and about 70,000 of the jobs would have slightly reduced the rate of unemployment. Yet, the unemployment rate (U3) fell from 7.3 to 7.0, which is too much for the job gain. It seems that the numbers and the news reports are not conveying correct information.
As the payroll jobs and unemployment rate reports are released together and are usually covered in the same press report, it is natural to assume that the reports come from the same data. However, the unemployment rate is calculated from the household survey, not from payroll jobs, so there is no statistical relationship between the number of new payroll jobs and the change in the rate of unemployment.
It is doubtful that the differences in the two data sets can be meaningfully resolved. Consider only the definitional differences. The payroll survey counts a person holding two jobs as if it were two employed persons, while the household survey counts a person holding two jobs as one job. Also the two surveys treated furloughed government workers during the shutdown differently. They were unemployed according to the household survey and employed according to the payroll survey.
To delve into the meaning of the numbers produced by the two surveys, keep in mind that payroll jobs can increase simply because the birth-death model used to estimate the numbers of unreported business shutdowns and startups can underestimate the former and overestimate the latter.
The unemployment rate can decline simply because the definition of the work force excludes discouraged workers. Thus, an increase in the number of discouraged workers can lower the measured rate of unemployment.
Before reviewing this, let’s first assume that the story of 203,000 new payroll jobs in November is correct. Where does the BLS say these jobs are? Are these the long-missing New Economy jobs that we were promised in exchange for giving China our well-paid manufacturing jobs and giving India our well-paid professional service jobs?
According to BLS, the jobs are mainly the same lowly-paid, part-time, nontradable domestic service jobs that I have been reporting for a decade or longer.
BLS reports that 17,000 jobs are in construction. On the surface this looks like some slight pickup in housing, but less than 5,000 of the jobs are in residential and nonresidential construction. The bulk of the claimed jobs are in “specialty trade contractors.” Specialty trade contractors are involved in repairs, alterations, and maintenance, but some of the work pertains to site preparation for new construction.
The BLS also claims 27,000 jobs in manufacturing. What precisely is being manufactured? Apparently, very little. The manufacturing jobs are spread over about 23 categories.
The manufacture of wood products gained 600 jobs. (Keep in mind that we are talking about a population over 300,000,000, and a participating work force of approximately 155,000,000.) Nonmetallic mineral products experienced, according to the BLS, 2,000 new jobs. Machinery gained 300 new jobs. Computer and electronic products gained 500 new jobs. Electrical equipment and appliances gained 600 jobs. Transportation equipment gained 4,900 jobs. Furniture manufacture gained 2,100 jobs (apparently to fill the foreclosed unoccupied houses). Food manufacturing gained 7,800 jobs. Petroleum and coal products gained 1,600 jobs, chemicals gained 2,200 jobs, and plastics and rubber products gained 1,300 jobs.You can review the remaining categories on the BLS site.
Most the rest of the 203,000 jobs–152,000–were in lowly paid domestic nontradable services (nontradable means that the jobs do not produce a service that can be exported), such as retail trade with 22,300 jobs, transportation and warehousing with 30,500 jobs, temporary help services with 16,400 jobs, ambulatory health care services with 26,300 jobs, home health care services with 11,800 jobs, and the old reliable waitresses and bartenders with 17,900 jobs.
This is the jobs profile of the American super economy. It is the profile of India 30 or 40 years ago.
Are even these lowly paid part-time domestic jobs really there? Perhaps not. According to statistician John Williams (shadowstats.com), the government shutdown and reopening, the birth-death model, and concurrent-seasonal-adjustment problems can result in misstated jobs.
The unemployment rate is affected by not counting discouraged workers who cannot find employment. No discouraged unemployed worker and no person forced to work in a part-time job because he cannot find full-time employment is counted in the 7.0 unemployment rate (U3).
To be included in the U3 unemployment rate, an unemployed person has to have looked for a job in the past four weeks. Those who have looked for a job until they are blue in the face and have given up looking are not counted in the U3 rate. In November any unemployed workers, discouraged by the absence of jobs, who ceased to look for employment were dropped from the labor force that U3 considers to be the base for the measure of unemployment. Thus, if unemployed workers move into the discouraged category, the rate of unemployment falls even if not a single person finds a job.
The government has a second unemployment rate, U6, about which little is heard. This rate counts workers who have been discouraged for less than one year. This unemployment rate is 13.2 %, almost double the reported rate.
In other words, the U3 measure of unemployment can decline for two different reasons: the economy can create more employment opportunities or people become discouraged and stop looking for jobs. Discouraged workers move into the U6 category where they are counted as unemployed until they have been discouraged for more than one year when they are no longer officially considered to be part of the labor force. The U6 unemployment rate can rise as short-term discouraged workers are dropped out of the U3 measure and moved into the U6 measure, and the U6 rate can fall when the workers become long-term discouraged and are officially removed from the labor force.
Think about this for a minute. The BLS admits that the US unemployment rate that includes people who have been discouraged about finding a job for less than one year is 13.2%. The official line is that the US economy has been enjoying a recovery since June 2009. How is there a recovery when 13.2% of the population is unemployed?
This question becomes even more pointed when the long-term–more than one year–discouraged workers who cannot find a job are included in the measure of unemployment. The US government does not provide such a measure. However, John Williams (shadowstats.com) does. His estimate produces a 23.2% rate of US unemployment. An increase in the number of long-term discouraged workers is consistent with the drop in the US labor force participation rate from 66% in December 2007 to 63% in November 2013.
There is no such thing as a recovery with 23.2% unemployment.
So, if there is no economic recovery, why are stock and bond prices so high, at all-time records? The answer is simple. The Federal Reserve is printing $1,000 billion new dollars annually and the newly created money is going into the bond and stock markets, driving them to high bubble levels.
So here sits the US economy with substantial unemployment, with massive trade and budget deficits that are taxing the US dollar’s credibility, with the labor force participation rate declining because there are no jobs to be found, and we are enjoying economic recovery with bond and stock prices at historic highs.
If this isn’t enough of a puzzle, consider the official second estimate of third quarter GDP growth. According to this estimate, the US economy expanded at a 3.6% rate in the third quarter; yet official U6 unemployment is 13.2%.
And if you believe the government, there is no inflation either. Yes, I know, your grocery bills go up each month.
Keep in mind that many of the new November payroll jobs could reflect seasonal hiring gearing up for the Christmas sales season. Remember, the payroll survey counts one person with two part-time jobs as two jobs.
Economic recovery requires a growth in real median family income and/or an increase in consumer debt, and, except for a rise in student loan debt, there is no sign of either.
US real median household income has declined from $56,189 in 2007 to $51,371 in 2012, a decline of $4,818 or 8.6%. http://www.deptofnumbers.com/income/us/
US real per capita income has declined from $29,554 in 2007 to $27,319 in 2012, a drop of $2,235 or 7.5%.
How do consumers take on more debt in order to finance their consumption when their real incomes are falling? The growth in consumer credit outstanding is due to student loan growth.
I have not seen the establishment’s explanation of how recovery can occur without growth in real purchasing power either from rising real incomes or rising consumer indebtedness.
According to the Bureau of Labor Statistics, there are 1,277,000 fewer seasonally adjusted payroll jobs in November 2013 than in December 2007.
How it is possible for the economy to have been in recovery since June 2009 (according to the National Bureau of Economic Research) and there are 1,277,000 fewer jobs today than existed six years ago prior to the recession?
How has real Gross Domestic Product recovered when jobs and real consumer incomes have not?
These are among the many questions that go unasked and unanswered.
Statistician John Williams says that the economic recovery is a statistical illusion created by deflating nominal GDP with an understated measure of inflation.
Reprinted with permission from www.paulcraigroberts.org
About Dr. Paul Craig Roberts
Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. His latest book, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West is now available.
Jim Rogers Says “Abolish the Fed and Resign”
It was an historic day on Wall Street with the Dow topping 16,000 on Monday. We’ll tell you why-and-what caused the run.
And the revolving door of Washington-to-Wall-Street takes another spin! This time it’s Timothy Geithner in the turnstile. We’ll tell you where he’s going.
Also, “What Would Jim Rogers Do”? We follow up with the legendary investor, and bow-tie aficionado, to get his take on what he would do if put charge of the Fed.
Finally, foreclosures are up from September. In some cities one in every 300 homes received a foreclosure filing last month. Is yours on the list? Rachel Kurzius and Erin discuss in today’s Big Deal.
Published by Boom Bust
The Coming Shortage Of Physical Gold That Will Change Everything
Is the paper gold scam about to be brutally crushed by a crippling shortage of physical gold? If so, what will that do to global financial markets? According to the Reserve Bank of India, “the traded amount of ‘paper linked to gold’ exceeds by far the actual supply of physical gold: the volume on the London Bullion Market Association (LBMA) OTC market and the major Futures and Options Exchanges was OVER 92 TIMES that of the underlying Physical Market.”
In other words, there is a massive amount of paper out there, but very little actual physical gold to back it up. And right now, we are witnessing voracious hoarding of physical gold all over the globe. This is especially true in Asia. Just see this article and this article. All of this hoarding is putting a tremendous amount of pressure on those that have made all of these “paper promises”, because the truth is that there really isn’t all that much physical gold on the planet. In fact, Warren Buffett once estimated that if all of the gold in the entire world was brought into one place, it could be formed into a cube that would only be 69 feet long by 69 feet high by 69 feet wide.
As the emerging shortage of physical gold becomes increasingly apparent, the massive Ponzi scheme that the bullion banks have been running for decades is going to completely fall apart. The following is what Egon von Greyerz told King World News the other day…
Governments and central banks have, for decades, leased or sold their gold to the bullion banks. So they are very likely to own very little of the 23,000 tons that Western central banks are said to hold.
But now bullion banks also have a problem: They tried to replenish their (physical gold) coffers during the massive manipulative selling that we’ve seen over the last few months in the paper market. Although they took the price down, most of the physical (gold) that was released by selling from ETFs and hedge funds was absorbed by Asia.
So the bullion banks are still massively short of physical gold.
Right now there simply is not enough physical gold out there and the bullion banks and the central planners are starting to panic. One of the individuals that really has his hand on the pulse of what is going on is billionaire Eric Sprott…
We have seen the COMEX inventories decline rapidly. We know that all of the dealer inventory on the COMEX has already been spoken for by delivery notices, so essentially there will be zero (inventory) if they ever make the delivery.
And the central planners (also) went to India and said, ‘Look, you’ve got to do something about all of this gold buying in India.’ So we’ve had ten different steps by the Indian government to try to curb demand — a 2% tax, a 4% tax, a 6% tax, an 8% tax, and a ruling that banks couldn’t lend money for people to buy gold.
They also convinced the Jewelers Association that as of July 1st they couldn’t sell gold bars and coins. Just last week there was a new rule implemented that if you are importing gold you have to prove that a certain amount is being re-exported. We’ve probably had ten or twelve things (restrictions) happen in six months, all of which is a huge attempt to get the second biggest buyer of gold in the world, after China, to decrease consumption because the gold isn’t around.
The central planners have arranged all of these things. I think it’s just been one big scheme to try to get people dissuaded from owning gold and to cause supply to come out. As you mentioned, because of it (central planner actions) we have the gold forward rates (for gold) being negative, backwardation, and inventories plunging, all of which have been manifested because there is a shortage of gold.
Already the emerging shortage of physical gold is starting to cause some very unusual things to happen in the financial markets. A recent article by Reg Howe did a good job of explaining what we have been witnessing lately…
By undercutting normal gold lease rates, these super low interest rates have forced central banks to reduce their lease rates to nonsensical levels in order to prevent gold futures from going into overt backwardation. Recall that GOFO, the gold forward rate, is the interest rate for a given maturity less the lease rate for that maturity, and that a negative GOFO represents backwardation. See Gold Derivatives: GLD and Ass Backwardation (5/24/2010); Gold Derivatives: The Tide Turns (5/25/2009). Passing the argument that widely reported premiums for spot physical delivery represent a form of backwardation, figures from the LBMA have now shown a negative GOFO at the shorter maturities for almost three weeks (July 8 through July 25) due to a surge in lease rates, which still remain below more normal historical levels.
Indeed, this unusual event has attracted considerable attention even from those outside the narrow world of gold. See, e.g., J. Skoyles, Backwardation, negative GOFO and the gold price, The Real Asset Co. (July 24, 2013); M. Kentz, Gold futures hiccup indicates demand outpacing supply, Reuters (July 19, 2013); G. Williams, What If, Things that Make You Go Hmmm, Mauldin Economics (July 15, 2013).
The bottom line is that there is a very serious shortage of physical gold, and as this becomes increasingly apparent to the rest of the world, this is likely to cause a tremendous amount of instability in the financial markets in the months ahead.
For much more on this, please see the recent interview with Alasdair Macleod of goldmoney.com that is posted below…
Right now we are also witnessing tremendous demand for physical silver as well.
For example, the U.S. Mint is going to break the all-time record for July by a very wide margin, and it is being projected that sales of Silver Eagles will likely be above 45 million for the entire year.
And remember, unlike gold, silver is used in thousands of different consumer products. So silver is continually being used up and taken out of the overall global supply.
Image credit: http://endoftheamericandream.com
Breaking News–Today’s Job Report
Do you remember the promise of the New Economy that was going to replace the lost “dirty fingernail” manufacturing jobs with innovative highly paid New Economy jobs? Well, the promise was just another deception from the elites who have stolen Americans’ future.
For the umpteenth consecutive month and year, the June BLS payroll jobs report (released on July 5) shows that the US economy has created no such jobs. The same old tired categories account for the same old lowly paid new domestic service jobs.
Of the 195,000 new private sector jobs alleged to have been created, 75,000 or 38% are accounted for by the category “leisure and hospitality.” Within this category there were 52,000 new waitresses and bartenders, and 19,000 jobs in “amusements gambling, and recreation.”
Retail trade added 37,000 employees. Is your local shopping center that busy?
Wholesale trade added 11,000.
Zero Hedge points out that the retail and wholesale jobs numbers seem inconsistent with the latest report from the Institute of Supply Management, which shows a sharp drop in new order components and business activity. http://www.zerohedge.com/news/2013-07-03/non-manufacturing-ism-crashes-lowest-february-2010-new-orders-devastated-july-2009-l Perhaps the New Economy’s inefficiency requires more people to sell less.
Professional and business services added, allegedly, 53,000 jobs, which are largely building management services, janitors, employment services, and temporary help.
Ambulatory health care services added 13,000 jobs.
Financial activities allegedly added 17,000 jobs despite the Bank of America moving its property appraisals to India. http://www.bizjournals.com/charlotte/blog/morning-edition/2013/07/bank-of-america-routing-property.html?ana=lnk
Local government, despite severe budget cuts, added 13,000 jobs.
The BLS news release points out that the number of involuntary part-time workers (the number of people who are unable to find full-time jobs or whose hours were cut back) increased by 322,000 in June to 8.2 million.
This deplorable report provided the cover for the market riggers to take the stock market up and the gold market down. Remember that economic theory about “rational markets”? Another deception.
Reprinted with permission from www.paulcraigroberts.org
About Dr. Paul Craig Roberts
Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. His latest book, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West is now available.
Dubai Gold Demand Off the Charts as Price Plunges
Only in the gold market does huge demand equal a price collapse! I suppose the problem is they don’t buy Comex contracts in Dubai and India. As I mentioned on Twitter earlier today, the pile-on from gold bears is reaching extreme proportions, something like you’d expect near a bottom. I bought physical silver today for the first time in over a year.
From the UAE’s The National:
The price drop led to a rush of buyers for Dubai gold from the Middle East, South East Asia, the Balkans, Turkey and parts of Europe according to Tarek El Mdaka, the managing director of Kaloti Gold in Dubai.
“I cannot find a place for transporting gold on Emirates, on BA on Swiss Airlines this weekend,” Mr El Mdaka said. “I am shipping in one-and-a-half to two tonnes of gold every day and it is going straight out.”
Mr El Mdaka added that gold is in such short supply in Dubai that he is able to charge a US$3 premium per ounce. “In the last week or so that has gone up from $1.25, $1.50 to $1.75. But now it is $3. We are really squeezed.”
Full article here
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Gold Premiums Double in India as Demand Outstrips Supply
WAR IS PEACE.
FREEDOM IS SLAVERY.
IGNORANCE IS STRENGTH.
MUMBAI (Reuters) – Gold premiums doubled in India on Wednesday as suppliers struggled to meet surging demand after a ban on consignment imports, but futures prices fell to their lowest in more than a month as international gold prices fell due to a strong dollar.
India, the world’s biggest buyer of gold, now requires importers to pay upfront for inventory, making it difficult for smaller jewelers with lower working capital to source supplies. The government also raised the import duty to 8 percent in May to keep a lid on the surging current account deficit.
“There may be some demand from jewelers for raw material,” said Bachhraj Bamalwa, former chairman of All India Gems and Jewellery Trade Federation, adding that premiums charged on London prices shot to $20 an ounce on Wednesday from $8-$10 on Tuesday.
“We are unable to supply, though there is demand … we give deliveries after 2-3 days,” said Harshad Ajmera, proprietor of wholesaler JJ Gold House in Kolkata.
Enjoy the gold crash comrades.
Full article here.
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Monsanto’s Website Hacked After 2 Million March
The Monsanto corporate website was hacked on May 29, 2013, just days after more than 2 million people marched against the organization around the world, and despite an almost complete media blackout. Anonymous, a group of internet hackers calling themselves ‘hacktivists’, was able to temporarily shut down the site as an act of outright revolt against Monsanto’s illegal and predatory practices of planting poison GMO crops even despite the public’s desperate attempts to stop them.
A statement released by Anonymous relates:
“Monsanto is facing the wrath of activists because they are altering the nature of our food supply without a concern about long term effects on human health, because they are creating a monopoly on the supply of seeds for farmers, and, because of increasing evidence of long term environmental damages.”
This same hacktivist has previously hacked into Monsanto’s website before, and also the public relations companies associated with them. In December of 2012, the hackers infiltrated the PR firm known as The Biving Group due to “15+ years of running marketing campaigns and helping some of the most corrupt corporations on the planet, as well as several governmental agencies, cover up their dirt.” Going by information released by Anonymous, Bivings Group shut down all of their servers and liquidated their assets after the infiltration.
Will activists take on increasingly desperate attempts to shut down corporations like Monsanto as the global spread of GMO seed endangers our food supply? As Monsanto seems to slide like a slippery eel through government institutions that are supposed to protect the people from health hazards like GMO, including the Senate, Congress, FDA, and our completely mute presidential office, perhaps the public is getting anxious as the GMO monopoly continues to grow in India and the US, as in other countries, despite rampant activism to stop them.
A Political Problem-Not an Economic Problem-Catherine Austin Fitts
By Greg Hunter, USAWatchdog:
Investment banker Catherine Austin Fitts sums up the historic global financial problems by saying, “We have a group of people who have the power to act with impunity.
They are above the law. They are centralizing and consolidating economic and political power. We have a political problem. We don’t have an economic problem.” Fitts’ analysis shows, “We’ve been on a debt model, and now we’ve got to get the planet on an equity model. . . .You are going to do everything you can do to get people into equities. Slamming precious metals down helps do that.” But Fitts says that won’t stop the gold bull because China and the rest of the world are buying the yellow metal. Fitts contends, “What that means is there is going to be a much more broad-based bull market in gold. . . I think it’s going to more of a sound money system, and gold is going to be a part of that.” Not everybody wants to be brought into the so-called new world order. Fitts predicts, “Remember, to come out with a one world currency, you need everybody. There can be no leakage. There can be no exceptions. The Russians are determined to be the stinker at the party is what I think.” Join Greg Hunter as he goes One-on-One with Catherine Austin Fitts, founder of The Solari Report.
Seeds Of Death – Full Movie
Posted by Gary Null
In preparation of the global March Against Monsanto, you are invited to watch our award-winning documentary Seeds of Death free.
The leaders of Big Agriculture–Monsanto, DuPont, Syngenta–are determined that world’s populations remain ignorant about the serious health and environmental risks of genetically modified crops and industrial agriculture. Deep layers of deception and corruption underlie both the science favoring GMOs and the corporations and governments supporting them.
This award-winning documentary, Seeds of Death, exposes the lies about GMOs and pulls back the curtains to witness our planet’s future if Big Agriculture’s new green revolution becomes our dominant food supply.
A Question and Answer fact sheet deconstructing Monsanto’s GM claims and Big Agriculture’s propaganda to accompany the film is available online:
50 Countries Label Genetically Engineered Foods – When Will Americans have the Right to Know and Choose?
Posted by Barbara H. Peterson
Barb’s Note: This is a must-read article to understand how genetic engineering started and where it is going. Pay special attention to the section titled “GMO as a weapon of biowarfare?”
Bill Gates, Rockefeller and the GMO giants know something we don’t…
One thing Microsoft founder Bill Gates can’t be accused of is sloth. He was already programming at 14, founded Microsoft at age 20 while still a student at Harvard. By 1995 he had been listed by Forbes as the world’s richest man from being the largest shareholder in his Microsoft, a company which his relentless drive built into a de facto monopoly in software systems for personal computers.
In 2006 when most people in such a situation might think of retiring to a quiet Pacific island, Bill Gates decided to devote his energies to his Bill and Melinda Gates Foundation, the world’s largest ‘transparent’ private foundation as it says, with a whopping $34.6 billion endowment and a legal necessity to spend $1.5 billion a year on charitable projects around the world to maintain its tax free charitable status. A gift from friend and business associate, mega-investor Warren Buffett in 2006, of some $30 billion worth of shares in Buffet’s Berkshire Hathaway put the Gates’ foundation into the league where it spends almost the amount of the entire annual budget of the United Nations’ World Health Organization.
So when Bill Gates decides through the Gates Foundation to invest some $30 million of their hard earned money in a project, it is worth looking at.
No project is more interesting at the moment than a curious project in one of the world’s most remote spots, Svalbard. Bill Gates is investing millions in a seed bank on the Barents Sea near the Arctic Ocean, some 1,100 kilometers from the North Pole. Svalbard is a barren piece of rock claimed by Norway and ceded in 1925 by international treaty.
On this God-forsaken island Bill Gates is investing tens of his millions along with the Rockefeller Foundation, Monsanto Corporation, Syngenta Foundation and the Government of Norway, among others, in what is called the ‘doomsday seed bank.’ Officially the project is named the Svalbard Global Seed Vault on the Norwegian island of Spitsbergen, part of the Svalbard island group.
The seed bank is being built inside a mountain on Spitsbergen Island near the small village of Longyearbyen. It’s almost ready for ‘business’ according to their releases. The bank will have dual blast-proof doors with motion sensors, two airlocks, and walls of steel-reinforced concrete one meter thick. It will contain up to three million different varieties of seeds from the entire world, ‘so that crop diversity can be conserved for the future,’ according to the Norwegian government. Seeds will be specially wrapped to exclude moisture. There will be no full-time staff, but the vault’s relative inaccessibility will facilitate monitoring any possible human activity.
Did we miss something here? Their press release stated, ‘so that crop diversity can be conserved for the future.’ What future do the seed bank’s sponsors foresee, that would threaten the global availability of current seeds, almost all of which are already well protected in designated seed banks around the world?
Anytime Bill Gates, the Rockefeller Foundation, Monsanto and Syngenta get together on a common project, it’s worth digging a bit deeper behind the rocks on Spitsbergen. When we do we find some fascinating things.
The first notable point is who is sponsoring the doomsday seed vault. Here joining the Norwegians are, as noted, the Bill & Melinda Gates Foundation; the US agribusiness giant DuPont/Pioneer Hi-Bred, one of the world’s largest owners of patented genetically-modified (GMO) plant seeds and related agrichemicals; Syngenta, the Swiss-based major GMO seed and agrichemicals company through its Syngenta Foundation; the Rockefeller Foundation, the private group who created the “gene revolution with over $100 million of seed money since the 1970’s; CGIAR, the global network created by the Rockefeller Foundation to promote its ideal of genetic purity through agriculture change.
CGIAR and ‘The Project’
As I detailled in the book, Seeds of Destruction1, in 1960 the Rockefeller Foundation, John D. Rockefeller III’s Agriculture Development Council and the Ford Foundation joined forces to create the International Rice Research Institute (IRRI) in Los Baños, the Philippines. By 1971, the Rockefeller Foundation’s IRRI, along with their Mexico-based International Maize and Wheat Improvement Center and two other Rockefeller and Ford Foundation-created international research centers, the IITA for tropical agriculture, Nigeria, and IRRI for rice, Philippines, combined to form a global Consultative Group on International Agriculture Research (CGIAR).
CGIAR was shaped at a series of private conferences held at the Rockefeller Foundation’s conference center in Bellagio, Italy. Key participants at the Bellagio talks were the Rockefeller Foundation’s George Harrar, Ford Foundation’s Forrest Hill, Robert McNamara of the World Bank and Maurice Strong, the Rockefeller family’s international environmental organizer, who, as a Rockefeller Foundation Trustee, organized the UN Earth Summit in Stockholm in 1972. It was part of the foundation’s decades long focus to turn science to the service of eugenics, a hideous version of racial purity, what has been called The Project.
To ensure maximum impact, CGIAR drew in the United Nations’ Food and Agriculture Organization, the UN Development Program and the World Bank. Thus, through a carefully-planned leverage of its initial funds, the Rockefeller Foundation by the beginning of the 1970’s was in a position to shape global agriculture policy. And shape it did.
Financed by generous Rockefeller and Ford Foundation study grants, CGIAR saw to it that leading Third World agriculture scientists and agronomists were brought to the US to ‘master’ the concepts of modern agribusiness production, in order to carry it back to their homeland. In the process they created an invaluable network of influence for US agribusiness promotion in those countries, most especially promotion of the GMO ‘Gene Revolution’ in developing countries, all in the name of science and efficient, free market agriculture.
Genetically engineering a master race?
Now the Svalbard Seed Bank begins to become interesting. But it gets better. ‘The Project’ I referred to is the project of the Rockefeller Foundation and powerful financial interests since the 1920’s to use eugenics, later renamed genetics, to justify creation of a genetically-engineered Master Race. Hitler and the Nazis called it the Ayran Master Race.
The eugenics of Hitler were financed to a major extent by the same Rockefeller Foundation which today is building a doomsday seed vault to preserve samples of every seed on our planet. Now this is getting really intriguing. The same Rockefeller Foundation created the pseudo-science discipline of molecular biology in their relentless pursuit of reducing human life down to the ‘defining gene sequence’ which, they hoped, could then be modified in order to change human traits at will. Hitler’s eugenics scientists, many of whom were quietly brought to the United States after the War to continue their biological eugenics research, laid much of the groundwork of genetic engineering of various life forms, much of it supported openly until well into the Third Reich by Rockefeller Foundation generous grants.2
The same Rockefeller Foundation created the so-called Green Revolution, out of a trip to Mexico in 1946 by Nelson Rockefeller and former New Deal Secretary of Agriculture and founder of the Pioneer Hi-Bred Seed Company, Henry Wallace.
The Green Revolution purported to solve the world hunger problem to a major degree in Mexico, India and other select countries where Rockefeller worked. Rockefeller Foundation agronomist, Norman Borlaug, won a Nobel Peace Prize for his work, hardly something to boast about with the likes of Henry Kissinger sharing the same.
In reality, as it years later emerged, the Green Revolution was a brilliant Rockefeller family scheme to develop a globalized agribusiness which they then could monopolize just as they had done in the world oil industry beginning a half century before. As Henry Kissinger declared in the 1970’s, ‘If you control the oil you control the country; if you control food, you control the population.’
Agribusiness and the Rockefeller Green Revolution went hand-in-hand. They were part of a grand strategy which included Rockefeller Foundation financing of research for the development of genetic engineering of plants and animals a few years later.
John H. Davis had been Assistant Agriculture Secretary under President Dwight Eisenhower in the early 1950’s. He left Washington in 1955 and went to the Harvard Graduate School of Business, an unusual place for an agriculture expert in those days. He had a clear strategy. In 1956, Davis wrote an article in the Harvard Business Review in which he declared that “the only way to solve the so-called farm problem once and for all, and avoid cumbersome government programs, is to progress from agriculture to agribusiness.” He knew precisely what he had in mind, though few others had a clue back then— a revolution in agriculture production that would concentrate control of the food chain in corporate multinational hands, away from the traditional family farmer. 3
A crucial aspect driving the interest of the Rockefeller Foundation and US agribusiness companies was the fact that the Green Revolution was based on proliferation of new hybrid seeds in developing markets. One vital aspect of hybrid seeds was their lack of reproductive capacity. Hybrids had a built in protection against multiplication. Unlike normal open pollinated species whose seed gave yields similar to its parents, the yield of the seed borne by hybrid plants was significantly lower than that of the first generation.
That declining yield characteristic of hybrids meant farmers must normally buy seed every year in order to obtain high yields. Moreover, the lower yield of the second generation eliminated the trade in seed that was often done by seed producers without the breeder’s authorization. It prevented the redistribution of the commercial crop seed by middlemen. If the large multinational seed companies were able to control the parental seed lines in house, no competitor or farmer would be able to produce the hybrid. The global concentration of hybrid seed patents into a handful of giant seed companies, led by DuPont’s Pioneer Hi-Bred and Monsanto’s Dekalb laid the ground for the later GMO seed revolution. 4
In effect, the introduction of modern American agricultural technology, chemical fertilizers and commercial hybrid seeds all made local farmers in developing countries, particularly the larger more established ones, dependent on foreign, mostly US agribusiness and petro-chemical company inputs. It was a first step in what was to be a decades-long, carefully planned process.
Under the Green Revolution Agribusiness was making major inroads into markets which were previously of limited access to US exporters. The trend was later dubbed “market-oriented agriculture.” In reality it was agribusiness-controlled agriculture.
Through the Green Revolution, the Rockefeller Foundation and later Ford Foundation worked hand-in-hand shaping and supporting the foreign policy goals of the United States Agency for International Development (USAID) and of the CIA.
One major effect of the Green Revolution was to depopulate the countryside of peasants who were forced to flee into shantytown slums around the cities in desperate search for work. That was no accident; it was part of the plan to create cheap labor pools for forthcoming US multinational manufactures, the ‘globalization’ of recent years.
When the self-promotion around the Green Revolution died down, the results were quite different from what had been promised. Problems had arisen from indiscriminate use of the new chemical pesticides, often with serious health consequences. The mono-culture cultivation of new hybrid seed varieties decreased soil fertility and yields over time. The first results were impressive: double or even triple yields for some crops such as wheat and later corn in Mexico. That soon faded.
The Green Revolution was typically accompanied by large irrigation projects which often included World Bank loans to construct huge new dams, and flood previously settled areas and fertile farmland in the process. Also, super-wheat produced greater yields by saturating the soil with huge amounts of fertilizer per acre, the fertilizer being the product of nitrates and petroleum, commodities controlled by the Rockefeller-dominated Seven Sisters major oil companies.
Huge quantities of herbicides and pesticides were also used, creating additional markets for the oil and chemical giants. As one analyst put it, in effect, the Green Revolution was merely a chemical revolution. At no point could developing nations pay for the huge amounts of chemical fertilizers and pesticides. They would get the credit courtesy of the World Bank and special loans by Chase Bank and other large New York banks, backed by US Government guarantees.
Applied in a large number of developing countries, those loans went mostly to the large landowners. For the smaller peasants the situation worked differently. Small peasant farmers could not afford the chemical and other modern inputs and had to borrow money.
Initially various government programs tried to provide some loans to farmers so that they could purchase seeds and fertilizers. Farmers who could not participate in this kind of program had to borrow from the private sector. Because of the exorbitant interest rates for informal loans, many small farmers did not even get the benefits of the initial higher yields. After harvest, they had to sell most if not all of their produce to pay off loans and interest. They became dependent on money-lenders and traders and often lost their land. Even with soft loans from government agencies, growing subsistence crops gave way to the production of cash crops.5
Since decades the same interests including the Rockefeller Foundation which backed the initial Green Revolution, have worked to promote a second ‘Gene Revolution’ as Rockefeller Foundation President Gordon Conway termed it several years ago, the spread of industrial agriculture and commercial inputs including GMO patented seeds.
Gates, Rockefeller and a Green Revolution in Africa
With the true background of the 1950’s Rockefeller Foundation Green Revolution clear in mind, it becomes especially curious that the same Rockefeller Foundation along with the Gates Foundation which are now investing millions of dollars in preserving every seed against a possible “doomsday” scenario are also investing millions in a project called The Alliance for a Green Revolution in Africa.
AGRA, as it calls itself, is an alliance again with the same Rockefeller Foundation which created the “Gene Revolution.” A look at the AGRA Board of Directors confirms this.
It includes none other than former UN Secretary General Kofi Annan as chairman. In his acceptance speech in a World Economic Forum event in Cape Town South Africa in June 2007, Kofi Annan stated, ‘I accept this challenge with gratitude to the Rockefeller Foundation, the Bill & Melinda Gates Foundation, and all others who support our African campaign.’
In addition the AGRA board numbers a South African, Strive Masiyiwa who is a Trustee of the Rockefeller Foundation. It includes Sylvia M. Mathews of the Bill & Melinda Gates Foundation; Mamphela Ramphele, former Managing Director of the World Bank (2000 – 2006); Rajiv J. Shah of the Gates Foundation; Nadya K. Shmavonian of the Rockefeller Foundation; Roy Steiner of the Gates Foundation. In addition, an Alliance for AGRA includes Gary Toenniessen the Managing Director of the Rockefeller Foundation and Akinwumi Adesina, Associate Director, Rockefeller Foundation.
To fill out the lineup, the Programmes for AGRA includes Peter Matlon, Managing Director, Rockefeller Foundation; Joseph De Vries, Director of the Programme for Africa’s Seed Systems and Associate Director, Rockefeller foundation; Akinwumi Adesina, Associate Director, Rockefeller Foundation. Like the old failed Green Revolution in India and Mexico, the new Africa Green Revolution is clearly a high priority of the Rockefeller Foundation.
While to date they are keeping a low profile, Monsanto and the major GMO agribusiness giants are believed at the heart of using Kofi Annan’s AGRA to spread their patented GMO seeds across Africa under the deceptive label, ‘bio-technology,’ the new euphemism for genetically engineered patented seeds. To date South Africa is the only African country permitting legal planting of GMO crops. In 2003 Burkina Faso authorized GMO trials. In 2005 Kofi Annan’s Ghana drafted bio-safety legislation and key officials expressed their intentions to pursue research into GMO crops.
Africa is the next target in the US-government campaign to spread GMO worldwide. Its rich soils make it an ideal candidate. Not surprisingly many African governments suspect the worst from the GMO sponsors as a multitude of genetic engineering and biosafety projects have been initiated in Africa, with the aim of introducing GMOs into Africa’s agricultural systems. These include sponsorships offered by the US government to train African scientists in genetic engineering in the US, biosafety projects funded by the United States Agency for International Development (USAID) and the World Bank; GMO research involving African indigenous food crops.
The Rockefeller Foundation has been working for years to promote, largely without success, projects to introduce GMOs into the fields of Africa. They have backed research that supports the applicability of GMO cotton in the Makhathini Flats in South Africa.
Monsanto, who has a strong foothold in South Africa’s seed industry, both GMO and hybrid, has conceived of an ingenious smallholders’ programme known as the ‘Seeds of Hope’ Campaign, which is introducing a green revolution package to small scale poor farmers, followed, of course, by Monsanto’s patented GMO seeds. 6
Syngenta AG of Switzerland, one of the ‘Four Horsemen of the GMO Apocalypse’ is pouring millions of dollars into a new greenhouse facility in Nairobi, to develop GMO insect resistant maize. Syngenta is a part of CGIAR as well.7
Move on to Svalbard
Now is it simply philosophical sloppiness? What leads the Gates and Rockefeller foundations to at one and the same time to back proliferation of patented and soon-to-be Terminator patented seeds across Africa, a process which, as it has in every other place on earth, destroys the plant seed varieties as monoculture industrialized agribusiness is introduced? At the same time they invest tens of millions of dollars to preserve every seed variety known in a bomb-proof doomsday vault near the remote Arctic Circle ‘so that crop diversity can be conserved for the future’ to restate their official release?
It is no accident that the Rockefeller and Gates foundations are teaming up to push a GMO-style Green Revolution in Africa at the same time they are quietly financing the ‘doomsday seed vault’ on Svalbard. The GMO agribusiness giants are up to their ears in the Svalbard project.
Indeed, the entire Svalbard enterprise and the people involved call up the worst catastrophe images of the Michael Crichton bestseller, Andromeda Strain, a sci-fi thriller where a deadly disease of extraterrestrial origin causes rapid, fatal clotting of the blood threatening the entire human species. In Svalbard, the future world’s most secure seed repository will be guarded by the policemen of the GMO Green Revolution–the Rockefeller and Gates Foundations, Syngenta, DuPont and CGIAR.
The Svalbard project will be run by an organization called the Global Crop Diversity Trust (GCDT). Who are they to hold such an awesome trust over the planet’s entire seed varieties? The GCDT was founded by the United Nations Food and Agriculture Organisation (FAO) and Bioversity International (formerly the International Plant Genetic Research Institute), an offshoot of the CGIAR.
The Global Crop Diversity Trust is based in Rome. Its Board is chaired by Margaret Catley-Carlson a Canadian also on the advisory board of Group Suez Lyonnaise des Eaux, one of the world’s largest private water companies. Catley-Carlson was also president until 1998 of the New York-based Population Council, John D. Rockefeller’s population reduction organization, set up in 1952 to advance the Rockefeller family’s eugenics program under the cover of promoting “family planning,” birth control devices, sterilization and “population control” in developing countries.
Other GCDT board members include former Bank of America executive presently head of the Hollywood DreamWorks Animation, Lewis Coleman. Coleman is also the lead Board Director of Northrup Grumman Corporation, one of America’s largest military industry Pentagon contractors.
Jorio Dauster (Brazil) is also Board Chairman of Brasil Ecodiesel. He is a former Ambassador of Brazil to the European Union, and Chief Negotiator of Brazil’s foreign debt for the Ministry of Finance. Dauster has also served as President of the Brazilian Coffee Institute and as Coordinator of the Project for the Modernization of Brazil’s Patent System, which involves legalizing patents on seeds which are genetically modified, something until recently forbidden by Brazil’s laws.
Cary Fowler is the Trust’s Executive Director. Fowler was Professor and Director of Research in the Department for International Environment & Development Studies at the Norwegian University of Life Sciences. He was also a Senior Advisor to the Director General of Bioversity International. There he represented the Future Harvest Centres of the Consultative Group on International Agricultural Research (CGIAR) in negotiations on the International Treaty on Plant Genetic Resources. In the 1990s, he headed the International Program on Plant Genetic Resources at the FAO. He drafted and supervised negotiations of FAO’s Global Plan of Action for Plant Genetic Resources, adopted by 150 countries in 1996. He is a past-member of the National Plant Genetic Resources Board of the US and the Board of Trustees of the International Maize and Wheat Improvement Center in Mexico, another Rockefeller Foundation and CGIAR project.
GCDT board member Dr. Mangala Rai of India is the Secretary of India’s Department of Agricultural Research and Education (DARE), and Director General of the Indian Council for Agricultural Research (ICAR). He is also a Board Member of the Rockefeller Foundation’s International Rice Research Institute (IRRI), which promoted the world’s first major GMO experiment, the much-hyped ‘Golden Rice’ which proved a failure. Rai has served as Board Member for CIMMYT (International Maize and Wheat Improvement Center), and a Member of the Executive Council of the CGIAR.
Global Crop Diversity Trust Donors or financial angels include as well, in the words of the Humphrey Bogart Casablanca classic, ‘all the usual suspects.’ As well as the Rockefeller and Gates Foundations, the Donors include GMO giants DuPont-Pioneer Hi-Bred, Syngenta of Basle Switzerland, CGIAR and the State Department’s energetically pro-GMO agency for development aid, USAID. Indeed it seems we have the GMO and population reduction foxes guarding the hen-house of mankind, the global seed diversity store in Svalbard. 8
Why now Svalbard?
We can legitimately ask why Bill Gates and the Rockefeller Foundation along with the major genetic engineering agribusiness giants such as DuPont and Syngenta, along with CGIAR are building the Doomsday Seed Vault in the Arctic.
Who uses such a seed bank in the first place? Plant breeders and researchers are the major users of gene banks. Today’s largest plant breeders are Monsanto, DuPont, Syngenta and Dow Chemical, the global plant-patenting GMO giants. Since early in 2007 Monsanto holds world patent rights together with the United States Government for plant so-called ‘Terminator’ or Genetic Use Restriction Technology (GURT). Terminator is an ominous technology by which a patented commercial seed commits ‘suicide’ after one harvest. Control by private seed companies is total. Such control and power over the food chain has never before in the history of mankind existed.
This clever genetically engineered terminator trait forces farmers to return every year to Monsanto or other GMO seed suppliers to get new seeds for rice, soybeans, corn, wheat whatever major crops they need to feed their population. If broadly introduced around the world, it could within perhaps a decade or so make the world’s majority of food producers new feudal serfs in bondage to three or four giant seed companies such as Monsanto or DuPont or Dow Chemical.
That, of course, could also open the door to have those private companies, perhaps under orders from their host government, Washington, deny seeds to one or another developing country whose politics happened to go against Washington’s. Those who say ‘It can’t happen here’ should look more closely at current global events. The mere existence of that concentration of power in three or four private US-based agribusiness giants is grounds for legally banning all GMO crops even were their harvest gains real, which they manifestly are not.
These private companies, Monsanto, DuPont, Dow Chemical hardly have an unsullied record in terms of stewardship of human life. They developed and proliferated such innovations as dioxin, PCBs, Agent Orange. They covered up for decades clear evidence of carcinogenic and other severe human health consequences of use of the toxic chemicals. They have buried serious scientific reports that the world’s most widespread herbicide, glyphosate, the essential ingredient in Monsanto’s Roundup herbicide that is tied to purchase of most Monsanto genetically engineered seeds, is toxic when it seeps into drinking water.9 Denmark banned glyphosate in 2003 when it confirmed it has contaminated the country’s groundwater.10
The diversity stored in seed gene banks is the raw material for plant breeding and for a great deal of basic biological research. Several hundred thousand samples are distributed annually for such purposes. The UN’s FAO lists some 1400 seed banks around the world, the largest being held by the United States Government. Other large banks are held by China, Russia, Japan, India, South Korea, Germany and Canada in descending order of size. In addition, CGIAR operates a chain of seed banks in select centers around the world.
CGIAR, set up in 1972 by the Rockefeller Foundation and Ford Foundation to spread their Green Revolution agribusiness model, controls most of the private seed banks from the Philippines to Syria to Kenya. In all these present seed banks hold more than six and a half million seed varieties, almost two million of which are ‘distinct.’ Svalbard’s Doomsday Vault will have a capacity to house four and a half million different seeds.
GMO as a weapon of biowarfare?
Now we come to the heart of the danger and the potential for misuse inherent in the Svalbard project of Bill Gates and the Rockefeller foundation. Can the development of patented seeds for most of the world’s major sustenance crops such as rice, corn, wheat, and feed grains such as soybeans ultimately be used in a horrible form of biological warfare?
The explicit aim of the eugenics lobby funded by wealthy elite families such as Rockefeller, Carnegie, Harriman and others since the 1920’s, has embodied what they termed ‘negative eugenics,’ the systematic killing off of undesired bloodlines. Margaret Sanger, a rabid eugenicist, the founder of Planned Parenthood International and an intimate of the Rockefeller family, created something called The Negro Project in 1939, based in Harlem, which as she confided in a letter to a friend, was all about the fact that, as she put it, ‘we want to exterminate the Negro population.’ 11
A small California biotech company, Epicyte, in 2001 announced the development of genetically engineered corn which contained a spermicide which made the semen of men who ate it sterile. At the time Epicyte had a joint venture agreement to spread its technology with DuPont and Syngenta, two of the sponsors of the Svalbard Doomsday Seed Vault. Epicyte was since acquired by a North Carolina biotech company. Astonishing to learn was that Epicyte had developed its spermicidal GMO corn with research funds from the US Department of Agriculture, the same USDA which, despite worldwide opposition, continued to finance the development of Terminator technology, now held by Monsanto.
In the 1990’s the UN’s World Health Organization launched a campaign to vaccinate millions of women in Nicaragua, Mexico and the Philippines between the ages of 15 and 45, allegedly against Tentanus, a sickness arising from such things as stepping on a rusty nail. The vaccine was not given to men or boys, despite the fact they are presumably equally liable to step on rusty nails as women.
Because of that curious anomaly, Comite Pro Vida de Mexico, a Roman Catholic lay organization became suspicious and had vaccine samples tested. The tests revealed that the Tetanus vaccine being spread by the WHO only to women of child-bearing age contained human Chorionic Gonadotrophin or hCG, a natural hormone which when combined with a tetanus toxoid carrier stimulated antibodies rendering a woman incapable of maintaining a pregnancy. None of the women vaccinated were told.
It later came out that the Rockefeller Foundation along with the Rockefeller’s Population Council, the World Bank (home to CGIAR), and the United States’ National Institutes of Health had been involved in a 20-year-long project begun in 1972 to develop the concealed abortion vaccine with a tetanus carrier for WHO. In addition, the Government of Norway, the host to the Svalbard Doomsday Seed Vault, donated $41 million to develop the special abortive Tetanus vaccine. 12
Is it a coincidence that these same organizations, from Norway to the Rockefeller Foundation to the World Bank are also involved in the Svalbard seed bank project? According to Prof. Francis Boyle who drafted the Biological Weapons Anti-Terrorism Act of 1989 enacted by the US Congress, the Pentagon is ‘now gearing up to fight and win biological warfare’ as part of two Bush national strategy directives adopted, he notes, ‘without public knowledge and review’ in 2002. Boyle adds that in 2001-2004 alone the US Federal Government spent $14.5 billion for civilian bio-warfare-related work, a staggering sum.
Rutgers University biologist Richard Ebright estimates that over 300 scientific institutions and some 12,000 individuals in the USA today have access to pathogens suitable for biowarfare. Alone there are 497 US Government NIH grants for research into infectious diseases with biowarfare potential. Of course this is being justified under the rubric of defending against possible terror attack as so much is today.
Many of the US Government dollars spent on biowarfare research involve genetic engineering. MIT biology professor Jonathan King says that the ‘growing bio-terror programs represent a significant emerging danger to our own population.’ King adds, ‘while such programs are always called defensive, with biological weapons, defensive and offensive programs overlap almost completely.’ 13
Time will tell whether, God Forbid, the Svalbard Doomsday Seed Bank of Bill Gates and the Rockefeller Foundation is part of another Final Solution, this involving the extinction of the Late, Great Planet Earth.
1 F. William Engdahl, Seeds of Destruction, Montreal, (Global Research, 2007).
2 Ibid, pp.72-90.
3 John H. Davis, Harvard Business Review, 1956, cited in Geoffrey Lawrence, Agribusiness, Capitalism and the Countryside, Pluto Press, Sydney, 1987. See also Harvard Business School, The Evolution of an Industry and a Seminar: Agribusiness Seminar, http://www.exed.hbs.edu/programs/agb/seminar.html.
4 Engdahl, op cit., p. 130.
5 Ibid. P. 123-30.
6 Myriam Mayet, The New Green Revolution in Africa: Trojan Horse for GMOs?, May, 2007, African Centre for Biosafety, www.biosafetyafrica.net.
7 ETC Group, Green Revolution 2.0 for Africa?, Communique Issue #94, March/April 2007.
8 Global Crop Diversity Trust website, in http://www.croptrust.org/main/donors.php.
9 Engdahl, op. cit., pp.227-236.
10 Anders Legarth Smith, Denmark Bans Glyphosates, the Active Ingredient in Roundup, Politiken, September 15, 2003, in organic.com.au/news/2003.09.15.
11 Tanya L. Green, The Negro Project: Margaret Sanger’s Genocide Project for Black American’s, in www.blackgenocide.org/negro.html.
12 Engdahl, op. cit., pp. 273-275; J.A. Miller, Are New Vaccines Laced With Birth-Control Drugs?, HLI Reports, Human Life International, Gaithersburg, Maryland; June/July 1995, Volume 13, Number 8.
13 Sherwood Ross, Bush Developing Illegal Bioterror Weapons for Offensive Use,’ December 20, 2006, in www.truthout.org.