US 'Military' Hackers "Prepare The Battlefield": Breach Russia's Backbone Ahead Of Possible Election Disruption

Tyler Durden's picture

Five months ago, NATO announced that a cyber-attack by a non-NATO entity would trigger the "collective defense" provision, enabling grounds for a 'kinetic' real war. And now, in what appears a pre-emptive move to dissuade any attempts at election disruption, US officials claims U.S. military hackers have penetrated Russia's electric grid, telecommunications networks, and the Kremlin's command systems - making them vulnerable to attack.

On June 14th we noted that:

NATO announced that if a NATO member country becomes the victim of a cyber attack by persons in a non-NATO country such as Russia or China, then NATO’s Article V “collective defense” provision requires each NATO member country to join that NATO member country if it decides to strike back against the attacking country. The preliminary decision for this was made two years ago after Crimea abandoned Ukraine and rejoined Russia, of which it had been a part until involuntarily transferred to Ukraine by the Soviet dictator Nikita Khrushchev in 1954. That NATO decision was made in anticipation of Ukraine’s ultimately becoming a NATO member country, which still hasn’t happened. However, only now is NATO declaring cyber war itself to be included as real “war” under the NATO Treaty’s “collective defense” provision.

 

NATO is now alleging that because Russian hackers had copied the emails on Hillary Clinton’s home computer, this action of someone in Russia taking advantage of her having privatized her U.S. State Department communications to her unsecured home computer and of such a Russian’s then snooping into the U.S. State Department business that was stored on it, might constitute a Russian attack against the United States of America, and would, if the U.S. President declares it to be a Russian invasion of the U.S., trigger NATO’s mutual-defense clause and so require all NATO nations to join with the U.S. government in going to war against Russia, if the U.S. government so decides.

Since then the non-stop drums of anti-Russia, Putin is the devil, propaganda has spewed forth from Democrats, Republicans, and the western mainstream media; headlined by the Obama administration literally threatening a cyber war with Russia in October over allegations it was behind the hacking of Clinton's emails.

According to an exclusive NBC report, the Obama administration "is contemplating an unprecedented cyber covert action" (though it's unclear how exactly it's covert if Biden is announcing it to the world via an interview with Chuck Todd)  against Russia, in "retaliation for alleged" interference in the American presidential election, and has asked the CIA to draft plans for a "wide-ranging "clandestine" cyber operation designed to harass and "embarrass" the Kremlin leadership."

 

So now the Obama administration is overtly leveraging the full power of the United States to intimidate foreign governments, and most likely Julian Assange, in order to maintain control of the Executive Branch of the government.  Does anyone within the mainstream media see any problems with this?  Certainly Chuck Todd and NBC do not.  And notice that even the NBC article refers to "alleged" Russian interference because not a shred of evidence has been presented to prove that senior Russian officials were actually behind the hacking of Hillary's emails...but who needs facts when you have a complicit media eager to advance whatever propaganda is necessary to maintain power?  

 

Former CIA officers interviewed by NBC said that there is a long history of the White House plotting potential cyber attacks against Russia.  That said, none of them were ultimately carried out because "none of the options were particularly good, nor did we think that any of them would be particularly effective."

Which prompted a rapid and angry response from Russia...

The response came this morning Putin's spokesman Dmitry Peskov said that "US aggressiveness is growing, and threats to carry out cyberattacks against Russia are unprecedented" adding that Russia will take “precautionary measures.”

 

The fact is, US unpredictability and aggression keep growing, and such threats against Moscow and our country’s leadership are unprecedented, because the threat is being announced at the level of the US Vice President,” Peskov told RIA Novosti cited by AFP. “Of course, given such an aggressive, unpredictable line, we have to take measures to protect our interests, somehow hedge the risks,” he said, adding that “such unpredictability is dangerous for the whole world.”

 

Kremlin aide Yuri Ushakov vowed Moscow would respond to any US cyber attacks, saying such threats were "borderline insolence", the news agency said.

And then the Obama administration took another hit, this time from The FBI who stated they found no link between Donald Trump and Russia...

For much of the summer, the F.B.I. pursued a widening investigation into a Russian role in the American presidential campaign. Agents scrutinized advisers close to Donald J. Trump, looked for financial connections with Russian financial figures, searched for those involved in hacking the computers of Democrats, and even chased a lead — which they ultimately came to doubt — about a possible secret channel of email communication from the Trump Organization to a Russian bank.

 

Law enforcement officials say that none of the investigations so far have found any link between Mr. Trump and the Russian government. And even the hacking into Democratic emails, F.B.I. and intelligence officials now believe, was aimed at disrupting the presidential election rather than electing Mr. Trump.

In other words, the FBI itself is telling the Democrat establishment to move on and find a different attack on Putin because the "Putin agent" is getting old.

However, as NBC News reports today, that has not stopped the Obama administration from implicitly declaring war on Russia...

U.S. military hackers have penetrated Russia's electric grid, telecommunications networks and the Kremlin's command systems, making them vulnerable to attack by secret American cyber weapons should the U.S. deem it necessary, according to a senior intelligence official and top-secret documents reviewed by NBC News.

 

American officials have long said publicly that Russia, China and other nations have probed and left hidden malware on parts of U.S critical infrastructure, "preparing the battlefield," in military parlance, for cyber attacks that could turn out the lights or turn off the internet across major cities.

 

It's been widely assumed that the U.S. has done the same thing to its adversaries. The documents reviewed by NBC News — along with remarks by a senior U.S. intelligence official — confirm that, in the case of Russia.

U.S. officials continue to express concern that Russia will use its cyber capabilities to try to disrupt next week's presidential election. U.S. intelligence officials do not expect Russia to attack critical infrastructure — which many believe would be an act of war — but they do anticipate so-called cyber mischief, including the possible release of fake documents and the proliferation of bogus social media accounts designed to spread misinformation.

On Friday the hacker known as "Guccifer 2.0" — which U.S. officials say is a front for Russian intelligence — tweeted a threat to monitor the U.S. elections "from inside the system."

 

The senior U.S. intelligence official said that, if Russia initiated a significant cyber attack against critical infrastructure, the U.S. could take action to shut down some Russian systems — a sort of active defense.

So last week we had VP Joe Biden proclaiming publicly that "we are sending a message to Putin" and now NBC confirms the US military has undertaken cyberattacks on Russia's infrastructure.

One problem, officials say, is that the doctrine around cyber conflict - what is espionage, what is theft, what is war - is not well developed.

"Cyber war is undefined," Brown said. "There are norms of behavior that we try to encourage, but people violate those."

Well judging from where we started - with NATO's declaration that a cyberattack is equivalent to a kinetic attack and thus an act of war, one can only wonder how the Russians will view this admission of 'action' by the Americans.

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bruinfan's picture

Translation: rig the Tuesday election and if it fails, blame the Russians.

X_in_Sweden's picture
X_in_Sweden (not verified) bruinfan Nov 5, 2016 10:03 AM

The NWO-Deep State-Rothchild & Rockefeller Mafiosa have been at war with the Russian Federation since they destroyed the Soviet-USSR.

This a formal declaration of war.

The bastards are goin' for broke.

Looney's picture

How stupid are these corrupt fucks in DC?

We’ve just opened the biggest and the stinkiest Pandora Toilet.

There ain’t no closing it.

Looney

Truther's picture

Lace'em up boys and girls, and get ready to rumble.

auricle's picture

Drain the swamp. Our VP gets on the air and claims the Russians hacked us and we are going to go after them. If you do go after them they would see that as an act of war. Where is the proof that it is the Russians leaking to Wikileaks? our ex CIA are leaking that it was US security agencies that leaked the information? Give us the evidence BEFORE you go getting us into another war. And I'm not talking about having the liar James Clapper deliver that information. And by the way that POS should have been wittingly removed from his post for lying under oath to the people. Yet in a corrupt government such as ours, presidential candidates can rely on his opinion that it was the Russians who hacked us. Drain the swamp already.

Pinto Currency's picture

It appears that the globalists feel they are about to be thrown out of the US and are resorting to starting a war with Russia to hold on.

Hopefully patriots within .gov can avert.
Citizens need to wake up.

Manthong's picture

It is sad to come to the realization that the portion of the US government that is not evil and manipulative is entirely ignorant and paranoid delusional.

Shemp 4 Victory's picture

Note the 'sources' for this story:

US officials
a senior intelligence official
American officials
a senior U.S. intelligence official
U.S. intelligence officials

Yes, I'm sure that anyone who personally knows Senior Intelligence Official will vouch for his well-known reputation for truthfulness and sincerity. His whole family is that way, including his son, Intelligence Official, Jr.

Even the aunts and uncles in the Official family are widely known to be forthright and honest. Whether it's the US Officials, the American Officials, the Intelligence Officials, or their relatives across the pond, the NATO Officials, you know you can trust an Official. That's the reason so many of them have been able to establish successful careers in government.

Sadly, for NBC News, this is the only evidence needed to confirm that their whole story is fabricated, nothing more than a phony baloney whopper of a tall tale.

They want us to believe that they learned of all this through a "senior intelligence official and top-secret documents reviewed by NBC News." This claim is ridiculous and absurd.

Senior Intelligence Official (you'll notice NBC's ham-handed attempt to obfuscate his identity by spelling his name in all lower-case) would never allow NBC News to review Top-Secret® documents. Doing so would violate secrecy laws, something which Senior Intelligence Official would never do. After all, he has an oath to uphold.

Perhaps NBC News will try to explain it all away by saying that Senior Intelligence Official must have shown them inauthentic, falsified, non-Top-Secret® documents. Alas, because of NBC's lack of familiarity with the concept of a reputation for honesty, they couldn't conceive that Senior Intelligence Official could never sink to that level of fraud and forgery.

American officials have long said publicly that Russia, China and other nations have probed and left hidden malware on parts of U.S critical infrastructure, "preparing the battlefield," in military parlance, for cyber attacks that could turn out the lights or turn off the internet across major cities.

A despicable, slanderous lie. It must not be enough for NBC News to make a cheap (and failed) attempt to tarnish the reputation of Senior Intelligence Official. Now they are trying to defame his entire family. NBC News cannot name a single American Official, or any other member of the Official family, who has publicly stated anything of the sort. This story also implies a distinct lack of patriotism on the part of NBC News, because nobody but the US Government itself can or will turn out the lights or turn off the internet across major cities.

Lastly, in an attempt to spread fear, uncertainty, and doubt, NBC warns us that

they do anticipate so-called cyber mischief, including the possible release of fake documents

Oh, like the fake Top-Secret® documents NBC News claims to have seen after imagining them into existence?

and the proliferation of bogus social media accounts designed to spread misinformation.

Sorry, NBC, but that's old news.

http://www.rawstory.com/2011/02/revealed-air-force-ordered-software-to-m...

yippee kiyay's picture
yippee kiyay (not verified) Shemp 4 Victory Nov 5, 2016 6:34 PM

The truth about the conflict with Russia NO ONE dares to reveal.
https://goo.gl/nKJndT

beauticelli's picture
beauticelli (not verified) yippee kiyay Nov 5, 2016 6:35 PM

break russia's backbone? pffft. what a laugh!

beauticelli's picture
beauticelli (not verified) stizazz Nov 5, 2016 6:37 PM

And to think our military's saying this sh*t.

philipat's picture

SPAM ALERT: Serial spammer DO NOT click on his fake links which are completely unconnected to his comment.Current active accounts: Yippee Kiyay, lonnng, letsit, Mano-A-Mano, techies-r-us, beauticelli and stizazz plus some others under review. He doesn’t actively Spam with every account and uses some just to “talk to and congratulate himself”.
Previous names include but not limited to: mofio, santafe, Aristotle of Greece, Gargoyle, bleu, oops, lance-a-lot, Loftie, toro.
Shit Tylers, this asshole has more accounts than the rest of us combined!. Can’t you IP block him? And his conversations with himself are now taking up half of each thread.

PrayingMantis's picture

 

... you have the correct point @Pinto Currency ...

 

... “The best part of waking up is opening your eyes” ~ PrayingMantis

... as an armchair researcher like most of the “deplorables” here on ZH, here's the PrayingMantis' take on some of the issues plaguing the US (s)elections ...

... this is worth repeating as I had previously opined on another thread ... ... and who is the “club” or “clubs”? ...

... “It's a big club and you ain't in it” ~ Carlin

... to understand the deep state (“clubs”), you have to start with these four main organizational players ... The Council on Foreign Relations https://en.wikipedia.org/wiki/Council_on_Foreign_Relations;

The Business Roundtable https://en.wikipedia.org/wiki/Business_Roundtable;

The American Bankers Association https://en.wikipedia.org/wiki/American_Bankers_Association;

and The US Chamber of Commerce https://en.wikipedia.org/wiki/United_States_Chamber_of_Commerce

... of these four, two enjoy intimate access to the WH ... CFR (head: David Rockefeller) and TBR; the membership of these two are cross-affiliated ...

... if you dig deeper on who is running these groups or who's involved with these organizations, you won't find Trump's name nor any of his family ... Trump is the clear definition of an establishment "outsider" ... which would explain why Trump is running his campaign against all odds ...

... the members of these four groups that control the US are members of all sides of the political spectrum which would also explain why some members of Trump's party would not support him ( although some might "pretend"  in public they do ...but privately, they wouldn't go against the wishes of their "club") ...

... “Who you gonna believe ... me, or your own eyes” ~ Groucho

... just take a look at the membership of each of these “clubs

https://en.wikipedia.org/wiki/Council_on_Foreign_Relations#Membership

https://en.wikipedia.org/wiki/Business_Roundtable#Executive_Committee

https://en.wikipedia.org/wiki/American_Bankers_Association#Leadership

https://en.wikipedia.org/wiki/United_States_Chamber_of_Commerce#Current_leadership

... now, while you're at it, take a look at the membership of these “clubs

https://en.wikipedia.org/wiki/Bilderberg_Group

https://en.wikipedia.org/wiki/Bohemian_Grove

https://en.wikipedia.org/wiki/Trilateral_Commission

... now take a look at the membership of these MSM ... the media information is concentrated in the hands of a few CEOs (members of the “clubs” above) .... and controlled by think tanks (who are also members of the clubs” (https://en.wikipedia.org/wiki/Manhattan_Institute_for_Policy_Research) and the “clubs” ...

... and this is why Trump says the media is “dishonest” and “rigged” by these players ... most of these are Clinton fund “providers” directly or by “proxy” ... through PACs and lobbysists ...

NBC owned by General Electric has board members intertwined with Allied Signal Inc, American Stores Co, Anheuser-Busch Co Inc, Baxter International Inc, Bristol-Myers Squibb Co, Champion International Corp, Chase Manhattan Corp, Chubb Corp, Citicorp (or Citigroup), Exxon Corp, Goodyear Tire & Rubber Co, J. P. Morgan & Co Inc, Kellog Co, Kimberly-Clark Corp, Mellon Foundation, PepsiCo Inc, Philip Morris Inc, Quaker Oats Co, Stanley Works, Textron Inc, Washington Post Co. (And for the obvious connections with Microsoft see the MSNBC web site.)

Viacom Inc. has board members intertwined with AlliedSignal Inc, Avnet Inc, Bear Stearns Co Inc, Duke Power Co, Melville Corp, Nynex Corp, Orange & Rockland Utilities Inc

ABC owned by The Walt Disney Co, has board members intertwined with America West Airlines Inc, Bank America Corp, Federal Express Corp, Florida Progress Corp, Hilton Hotels Corp, K-Mart Corp, Mitchell Energy & Development, Northwest Airlines Corp, Pacific Enterprises Inc, Unum Corp, Xerox Corp

CNN owned by AOL-Time Warner, has board members intertwined with Allstate Corp, America West Airlines Inc, American Express Co, American International Group Inc, Aon Corp, Becton, Dickinson & Co, Chevron Corp, Citicorp (see above), Colgate-Palmolive Co, Cummins Engine Co Inc, Dell Computer Corp, Foundation Health Corp, Genentech Inc, Illinova Corp, Inland Steel Industries Inc, Kellogg Co, K-Mart Corp, Mobil Corp (see above), Olsten Corp, Philip Morris Inc, Sears Roebuck & Co, Springs Industries, Sunbeam Corp, Triarc Co Inc, Turner Broadcasting System Inc, WHX Corp

CBS owned by Viacom (was owned by Westinghouse Electric Co.), has board members intertwined with Aetna Life and Casualty Co, Ashland Inc, BDM International Inc, Banc One Corp, Bell Atlantic Corp, Campbell Soup Co, Cardinal Health Inc, Chase Manhattan Corp, Columbia HCA Healthcare Corp, Dell Computer Corp, Dow Jones & Co Inc, Duracell International Inc, General Dynamics Corp, Gillette Co, Harcourt General Inc, Kaman Corp, MBIA Inc, Melville Corp, Pharmacia & Upjohn Inc, Prudential Insurance Co of America, Quaker Oats Co, Phone-Poulenc Rorer Inc, Rockwell International Corp, Sun Co Inc, Union Pacific Corp, Wal-Mart Stores Inc, Warnaco Group Inc, Warner-Lambert Co, Westinghouse Foundation

Fox owned by The News Corporation Ltd. Has board members intertwined with Bankers Trust New York Corp, Bayou Steel Corporation, Global Asset Management USA Inc, Hudson General Corporation, MCI Communications, News America Holdings Inc, News American Publishing Inc, News International PLC, Sesac Inc, Times Newspapers Holding Ltd, 20th Century Fox

Gannett Co. Inc. has board members intertwined with Airborne Freight Corp, American Express Co, Bancorp Hawaii Inc, Bank America Corp, Continental Airlines, E.I. du Pont De Nemours and Co, FPL Group Inc, Ford Motor Corp, Frontier Corp, Kellogg Co, Navistar International Corp, PHH Corp, Union Pacific Corp (2 directors)

Knight-Ridder Inc. has board members intertwined with ALCO Standard Corp, Champion International Corp, Chubb Corp, Delta Air Lines Inc, Digital Equipment Corp, Eli Lilly and Co, Great Atlantic and Pacific Tea Co, J.P. Morgan & Co Inc, Kimberly-Clark Corp, Phillips Petroleum Co, Raytheon Co (2 directors), State Street Boston Corp, Tandy Corp, Texas Instruments Inc

The New York Times Co. (partly owned by Mexican Billionaire Carlos Slim) has board members intertwined with Bristol-Myers Squibb Co, Campbell Soup Co, International Business Machines Co, Lehman Brothers Holding Inc, PepsiCo Inc, Springs Industries Inc, Texaco Inc, US Industries Inc

Times Mirror Co. has board members intertwined with Amoco Corp, Black & Decker Corp, Boeing Co, Cox Communications Inc, Edison International (2directors), Marsh & McLennan Cos Inc, Nordstrom Inc, Procter & Gamble Co, Rockwell International Corp, Ryder Systems Inc, Sun America Inc, Talbots Inc, Travelers Group Inc

Washington Post Co. (majority owned by the Amazon guy Bezos) has board members intertwined with American Express Co, American Stores Co, Ashland Inc, Bank of New York Co. Inc, Berkshire Hathaway Inc, Coca-Cola Co, Conrail Inc, Darden Restaurants Inc, Geico Corp, General Electric Co, Gillette Co, H. J. Heinz Co, Home Depot Inc, J. P. Morgan & Co Inc, Lexmark International Group Inc, McDonald's Corp, Morgan Stanley Group Inc, National Services Industry Inc, Polaroid Corp, Rohm and Haas Co, Salomon Inc, Textron Inc, Union Pacific Corp, Wells Fargo & Co.

... all these directors, CEOs and corporate elites are also members or leaders of the “clubs” mentioned above ...

... do you ever wonder why the Trilateral Commission calls their club as such ?... trilateral/three-sided ... picture a triangle with an eye in the middle found on the US dollar bill (with inscriptions E Pluribus Unum ... out of many ... one ... out of many countries, one global entity) ... .... “In the kingdom of the blind, the one-eyed man is king” ~ Erasmus

... there is one glaring omission on all these “clubs” ... one common denominator ... not one of them has Donald Trump nor his family as a member ... he and his family are establishment “outsiders” ... (is it perhaps the evil establishment doesn't want Donald J Trump, the grandson of Christ, in their midst? ... as I pointed out an odd tidbit on a previous thread >>> https://en.wikipedia.org/wiki/Elizabeth_Christ_Trump ;)

... all these “clubs” are Clinton funders ... ... and this is why Trump's campaign is on a wing and a prayer ... and definitely against all odds ...

to summarize ... the 2016 American presidential election is about the corporate elite globalist establishment represented by the Klinton Krime Kartel versus the American people represented by Donald Trump ...

... and remember, ... “The finest trick of the devil is to persuade you that he does not exist.” ~ Charles Baudelaire

 

PM


 

HowdyDoody's picture

This is nothing. Sir Michael Fallon, the UK Minister of Offence has stated that the UK will be ready to go to war with Russia in two years.

https://theuglytruth.wordpress.com/2016/11/03/uk-britain-would-be-ready-...

Should I go short on the UK economy now, or wait a while?

 

 

Killdo's picture

I chated with some Oxford-educated UK friends a couple of days ago - could not believe how rabidly anti-Russian and pro-$hitlery they were.

They were much more brainwashed than the communists I remember from my childhood in Yugoslavia

CuttingEdge's picture

The mind boggles at the stupidity of fuckwits like Fallon.

They go on about the UK's "independent" nuclear deterrent (justifying a +$50b spend on Trident) without cross-referencing the NATO ROE and the country's obligation:

If the US goes to war with Russia, the fucktards running the UK are commited to support, and if it goes nuclear, how many retaliatory MERVs to destroy the UK?

One, on London. Maybe toss a couple more further north if you want to go the whole hog.

 

Kayman's picture

Stiff Upper Lip now a hollow shell of itself. Quietly strong and prepared isn't the same as noisy belligerent Chicken Little.

Britain- how did you miss the Vatican's inside man Tony Blair when he invented Yellow Cake to get you into the stupid war in Iraq?

garypaul's picture

Trump's father made his entire  fortune by being a CONTRACTOR FOR THE GOVERNMENT, so your comment is totally full of shit. (although a lengthly and impressive-looking piece of shit).

PrayingMantis's picture

 

> so your comment is totally full of shit. (although a lengthly and impressive-looking piece of shit).

... wow, a flyspecked dude got triggered ... lol ...

... is this what you're writing about ? > made his entire  fortune by being a CONTRACTOR FOR THE GOVERNMENT

... re: Fred Trump https://en.wikipedia.org/wiki/Fred_Trump ... "... Trump's development company built and managed single-family houses in Queens, barracks and garden apartments for U.S. Navy personnel near major shipyards along the East Coast, and more than 27,000 apartments in New York City. ..." 

   ... being a real estate contractor for .gov doesn't mean nor show Fred's part of the "establishment" ...

   ... or perhaps, like the democretards manure-laden line of thinking, you are sheepishly inferring that Fred Trump is a member of one of the "clubs" I mentioned on my post?  ... if so, kindly show us proof, your highness  ;)  ...

 

Savvy's picture

Trump's grandfather ran a whorehouse in Northern BC and the Yukon. That's where their money comes from LOL. Not that I care, hope he wins, but the family got rich being pimps. Look it up.

boattrash's picture

Who is actually fucking around with other people's elections? I ran into this while checking out the crooked bastards in the BLM (think Bundy, not street riots) This is from the Profile Page of Neil Korntz, Director of Bureau of Land Management

"Before coming to the Bureau of Land Management, Kornze worked as a Senior Advisor to U.S. Senate Majority Leader Harry Reid of Nevada. Kornze has also served as an international election observer in Macedonia, the Ukraine, and Georgia. He earned a bachelor’s degree in Politics from Whitman College in Walla Walla, Washington and a master’s degree in International Relations from the London School of Economics."

This is straight from the .gov site...

https://www.doi.gov/whoweare/blm-dir

Escrava Isaura's picture

Do you think Americans are prepared to face failure?

To live within about ¼ of current oil and gasoline consumption?

Thus, with much less food available?

The desire to come on top is deep inside of American DNA.

Don’t be a hypocrite.

 

nightshiftsucks's picture

Haven't you heard that you shouldn't do drugs.

BuddyEffed's picture

If their grid goes down, then they will want to take our grid down too. How stupid this approach is. And without a grid you might as well be a caveman.

Manthong's picture

..good reason for adding at least enough solar to keep the fridge and the furnace motor or radiant heaters running.

 

SWRichmond's picture

Act of war, openly declared.

I am gonna go hug Mrs. SWR and tell her how much I love her.

bIlluminati's picture

Taking down the U.S. grid is part of the plan. Much easier to disappear people if communications are out. U.S.gov will probably leave a rodio and TV station open in each city to give us our daily 3 miunte hate.

Kayman's picture

We have been facing failure for a generation.  Time for a change.

Do you own shares in the big oil corporations??  We've been running out of oil for 30 years now, but damn it, just when we get near to being out, someone comes up with more. Funny, that.

K

Escrava Isaura's picture

Kayman: Do you own shares in the big oil corporations?? Someone comes up with more. Funny, that.

Really? How’s this for funny:

ExxonMobil enjoyed a $45 billion net income profit in 2012. Now compare that to a total $5 billion net income gain for the first three-quarters of 2016. If Exxon continues to report disappointing results for the remainder of the year, its net income will have declined a stunning 85% since 2012.

To understand the real profitability of a company we have to look at its cash flow, or what is known as free cash flow. Free cash flow is calculated by deducting capital expenditures (CAPEX) from the company’s cash from operations. ExxonMobil’s free cash flow declined from $24.4 billion in 2011 to $1 billion for the first nine months of 2016.

If we include dividend payouts, Exxon’s financial situation drops down another notch. While free cash flow does not include dividend payouts, the money Exxon pays its shareholders must come from its available cash. By including dividend payouts, the company was $8.3 billion in the hole in 2015.

The bad news is, Exxon’s surplus cash declined significantly when the oil price was over $100 from 2011 to 2013.

Basically, Exxon spent three times more money in 2012 to produce 300,000 barrels per day less than it did in 1997.

https://srsroccoreport.com/end-of-the-u-s-major-oil-industry-era-big-trouble-at-exxonmobil/

 

Arnold's picture

Exploration is costly, despite some breaks from .gov.

The biggest break they are not getting, is access to Federal Land and shallow water off shore, somewhat easier to develop reserves.

Renovating their infrastructure also seems prudent as most companies are not, and passing the savings onto shareholders.

These heavy industries aren't built on skittles and Unicorns.

Socratic Dog's picture

Trouble is, oil costs more to obtain,nowadays.  It used to be about free, and that, free energy, was what we built a civilization on the back of.  That and the con game known as credit, free money.

We learned recently that oil at $100/barrel keeps the oil companies profitable, but is too expensive for our civilization to sustain.

Now we're learning that even $30-40/barrel is too expensive, we need it to be essentially free for the gigantic house of cards we built on it to survive.  Well, it ain't free no more.  That's what "peak oil" really means, there will always be oil, we (society) just won't be able to afford it.  So we are, in a word, fucked.

And credit?  Well, the interest rate (the vig) charged on the creation of money needs constant growth of that particular amount to pay it.  Create money at 4% interest?  He who takes that money needs to grow at 4%, just to break even.  But you can't grow at 4%, without...free energy. That's Catch 22.   Got it?

Negative interest rates mean -ve growth is expected, the best we can do.  It's a way of trying to manage economic and civilizational  implosion.  But it needs to percolate to all levels to have any chance of success, and it won't.  Think Hillary will let me buy a house at -ve interest?  And it really needs to be preceded by a debt jubilee to have any chance of success.

SoDamnMad's picture

No, get your LED flashlights, extra batteries, plenty of canned food that won't require cooking, bottled water,warm clothes, copy of how the Russians survived the Seige of Leningrad 1941-1944 for tips on how to survive. You will need this for the EMP that the US will perform upon it's citizens to blame the Russians for the start of WWIII.

sun tzu's picture

Mostly ate bread made from sawdust and scavenged. Some people turned to cannibalism. The same happened with the Germans at Stalingrad

InsaneBane's picture

Lavrov already said it: 'So many pussies' on both sides of US presidential campaign'

https://www.youtube.com/watch?v=YKFRHCwbvec

Robert Trip's picture

Lavrov is an alcoholic strong arm man for Putin who doesn't even fart before he gets the OK from his Master.

Lavrov is full of shit.

Kind of similar to our McCain or a Harry Reid.

MEFOBILLS's picture

Did you even watch the clip?  Lavrov chose not to comment about all the "pussy" surrounding the candidates.  Why?  Because English is not his first language.

Sounds like Lavrov is  not  full of shit, but instead is thoughtful.

ISEEIT's picture

So in other words a Kerry/Hillary?

AlexCharting's picture

I just got a message from my broker.... preparing for EMP or cyber attack?

 

"Dear Client,

In a continued effort to enhance the resilience of our trading infrastructure, we are providing an upgrade to our desktop TWS platform today that would enable additional protection against the kind of highly publicized Internet attack that occurred on October 21, 2016, in which Interactive Brokers was not affected."

Backin2006's picture

So sick of the warmongers! Next time they beat the 'patriotic' drum they might find few mugs responding. Here's hoping.

wombats's picture

I'm calling bullshit on this one.  No way they would ever advertise their specific capabilities that overtly.

The Merovingian's picture

Perhaps, but not when you recognize that the war is really on the average, brain dead, MSM dependent masses here in the good ol' USofA who are too stupid to recognize they've been duped, and that they will once again be tricked into volunteering up their sons and daughters to die for the MIC and entrenched Shadow Government that really pulls all the stings, it all actually rings eerily true.

Kayman's picture

Just like 9-11 "couldn't have been predicted".  I think it couldn't be predicted that Putin would take out every member of the Deep State, including the Council on Foreign Relations, before he pressed the button.

Putin is a murdering dictator, but at least we know that up front.  Can anyone think that HilLiary wouldn't sell out this nation for the right "contribution" ?

A million dollars from Qatar ?  Chump change for Qatar.  Foreign countries and Foreigners must piss themselves over how little it takes to get a Clinton to commit Treason.

 

 

Shemp 4 Victory's picture

Funny this:

Putin is a murdering dictator, but at least we know that up front.

Who is we? I've seen nothing to convince me that Putin is a murderer, and to call him a dictator is laughable.

lincolnsteffens's picture

NATO just announcing a response to a false flag event. I know, I know, Poland really did invade Germany with horse Calvary and 3 modern super-structures melted into their footprints on 9/11.

Mother Fletcher's picture

With these Keystone Kops it might as well be  a Colonel Flagg event.