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Debt Rattle March 9 2024

Mar 092024
 
 March 9, 2024  Posted by at 9:42 am Finance Tagged with: , , , , , , , , ,  31 Responses »


Eugène Delacroix Femmes d’Alger (Women of Algiers) 1834

 

• And Now There (Really) Are Two… or Three (Denninger)
• Col. Macgregor Response to Biden Speech Profoundly Accurate and Important (CTH)
• Scott Ritter on Biden’s SOTU: ‘America’s Running Away From Ukraine’ (Sp.)
• Medvedev Calls Biden a US Disgrace (TASS)
• Tucker Carlson: Biden’s Address to Congress ‘Most Un-American Speech Ever (Sp.)
• Is This The Real Reason Why Victoria Nuland Quit? (Strokan)
• Biden Tries to Blame Republicans for Coming Loss of Ukraine (Sp.)
• China Wants Russia At Ukraine Peace Talks (RT)
• We Will Not Be Intimidated By The Kremlin – Greek PM (RT)
• Europe Is in Danger of Falling Asleep in Peace and Waking Up in War (Dinisio)
• Fearful Electioneering Turbo Charges Western Warmongering (SCF)
• Biden Parachutes TV Dinners Into Gaza. Sounds Absurd? It Is (SCF)
• DC Court Greenlights Flurry of Jan. 6 Lawsuits Against Trump (ET)
• Trump Coughs Up $91 Million Bond, Appeals E. Jean Carroll Defamation Suit (ZH)
• Jan 6 Comm. Hid Exonerating Evidence Of Trump’s Push For National Guard (Fed.)

 

 

 

 

Agenda 47

 

 

Brennan

 

 

Rufo

 

 

 

 

OMG
https://twitter.com/i/status/1765912315805757637

 

 

RFK

 

 

 

 

Alex Jones
https://twitter.com/i/status/1765964006924427490

 

 

Mike Benz Assange

 

 

 

 

“..Kennedy is flirting with attempting to get the Libertarian nomination, and the Libertarian party has ballot access for the Presidential ticket in all 50 states..”

• And Now There (Really) Are Two… or Three (Denninger)

Haley is out and IMHO good riddance. She was wildly more-dangerous than Victoria Nuland, who is also leaving and there is speculation that’s because an FOIA was filed for records that could implicate her in the Lira’s torture and death in Ukraine; he was of course a very loud critic of Nuland’s views and US Ukraine policy, which got him jailed for what in the US would be considered Constitutionally-protected free speech. I don’t know if Nuland had anything to do with it or not but that’s she’s out is good — what’s not disputable is that pretty-much the entire Ukraine policy since 2014 has been hers, including our sponsorship of Maidan. The destruction there in both material and people is hideous and as with Madame Albright’s myopic view of international relations born of her roots Nuland’s position appears to be equally-driven by personal animus. In my view both should have been jettisoned as soon as that became apparent, but obviously neither was.

That Haley had no path was known a couple of months ago, but eventually no matter how stubborn you are in the face of facts the money runs out because modern politics requires a lot of it, and the people spending it see it as a prop bet with a potential return. When the odds get long enough they stop paying and you stop running, like it or not. This of course means that with Biden being the incumbent and political party doctrine being that sitting Presidents with another term available may not be challenged in the primary it is now a two person race. Well, sort of. There are rumors flying around that Kennedy is flirting with attempting to get the Libertarian nomination, and the Libertarian party has ballot access for the Presidential ticket in all 50 states. Despite his policies being pretty much anything but Libertarian the party, of which I have decent internal knowledge of as I was elected to the EC in Florida, is very likely to embrace this move since it will both bring in money and, assuming he gets any material number of votes, and he will, further-cement their ballot position.

Politics makes for strange compromises sometimes and whether you like it or not that’s never going to change. While I wildly disagree with many of Kennedy’s views I might actually vote for him rather than write in Beelzebub or Cthulhu this November, should he run on the Libertarian ticket. I certainly can’t support Biden nor can I support Trump as on the critical issues facing this nation, all related to the rule of law, neither has delivered anything than a Bronx Cheer, albeit aimed in different directions and to the benefit of, in some cases, different people. I will remind everyone that 8 USC §1324 has been around since long before either Trump or Biden was President and that the Executive, of which the President is the head, has the Department of Justice, AG and FBI under same.

Further, every federal officeholder takes an oath to uphold the Constitution and laws of the United States, including the ones they personally disagree with. There’s a process to change the law if you don’t like it and that process goes through Congress. Said law, were it to be enforced, would absolutely stop all of the illegal immigration games instantly and permanently as it lays out criminal felony penalties, including prison time of 5, 10, 20 and potentially life prison terms, for those who harbor or assist such immigration including those who employ said persons. Since both of the current “mainstream” candidates claim the situation is a critical problem (and I agree with this) but at the same time claim they don’t have the legal tools to deal with it and that is absolutely a lie I will not vote for either of them.

The same applies when it comes to monopolist practices riven through our economy, most-critically in health care as that has the largest impact on the Federal and State budgets. Again, 15 USC Ch. 1 §1-3 makes clear that such conduct, even the mere attempt if it fails, is a criminal felony carrying prison penalties for each person who is engaged in same. That law has been challenged twice to the US Supreme Court in the late 1970s and early 80s (Royal Drug and Maricopa County) and found Constitutional both times. Nonetheless neither major political party has lifted a finger to bring a single criminal charge under that law — not in health care or in any of the other merger and consolidation activities in any industry. Now will Kennedy vow to bring said charges? That would be a reason to vote for him. Of course he might be lying, but then again he might not. I already know the other two have lied and nothing they can say now will cause me to believe them thus “might” beats “won’t.”

There are many who think our markets and economy will chug along through 2024 and that “its just fine.” I argue the data says otherwise; consumer credit has gone vertical, for example, and lates are rising quickly, including in car loans which are more-likely to get paid than a mortgage because without a car you’re not going to work and then everything goes down the toilet for you in your personal financial situation. Thus if you have to screw someone as you simply don’t have the money to pay the last person you usually screw is the car finance company. I’m not dancing in the streets, incidentally, that Trump is the presumptive nominee. The Supreme Court’s 9-0 decision on Colorado the other day probably won’t stop some from trying to interfere in the election, but the Court made quite clear that the decision as to who is President lies with the people as the States and other apparatus, other than through Congress, simply do not have jurisdiction to force a decision other than by individual votes at the ballot box.

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“Macgregor doesn’t go deep in the weeds on this, but what he describes as the economic and financial outcome is entirely accurate.”

Must watch video.

• Col. Macgregor Response to Biden Speech Profoundly Accurate and Important (CTH)

The core targets within this information war are those who are talking about the entities who are controlling and directing the politicians and government. The voices who are considered a threat are not, repeat NOT, voices who are critical of government. The voices who are considered a threat are those who understand the government actors are controlled and intentionally presented as the false source of the problem. Just as Jack Smith is not the controlling entity organizing the targeting of Donald Trump, so too is Joe Biden (and the administration) not the originating entity who organized the Western sanction regime against Russia. Jack Smith and Joe Biden are essentially actors, vessels following a design that has been created by outside government entities for the purpose of targeting Donald Trump and/or Russia respectively. The bigger motives and intents of targeting both are essentially the same. There are trillions at stake.

Outside government actors like Mary McCord, Norm Eisen, Andrew Weissmann and crew are the organizers behind Jack Smith’s effort. They are the characters who coordinate with Fani Willis (GA) and Letishia James (NY). Those individuals are funded by outside government institutions. Ultimately, Jack Smith is the vessel. Within the Western finance system, Blackrock, Vanguard, the WEF and a host of similarly aligned massive financial interests are the organizers behind the Russian sanction regime. The USA government is the vessel. FOLLOW THE MONEY…. This is one of the reasons why the entire political establishment is behind support for Ukraine. Blackrock, Vanguard, State Street and a host of massive financial interests are the funding mechanism for U.S. politicians. The various Western governments and politicians are the vessels, not the originating sources of these policies. Macgregor doesn’t go deep in the weeds on this, but what he describes as the economic and financial outcome is entirely accurate.

Macgregor
https://twitter.com/i/status/1766089825273164037

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“Biden didn’t walk away from Ukraine. He ran away from there, straight into issues about domestic politics because it’s a campaign address, not a State of the Union speech..”

• Scott Ritter on Biden’s SOTU: ‘America’s Running Away From Ukraine’ (Sp.)

“Instead of a State of the Union address, the US Congress and indeed the American people were treated to a rousing campaign speech which POTUS was using to kick off the 2024 presidential election campaign,” former US Marine Corps intelligence officer and independent military analyst Scott Ritter told Sputnik. Biden “is facing the presumptive Republican nominee, former US President Donald Trump, in what many expect to be a very hot, very controversial and heated contest for who will be the next president of the United States. Joe Biden let off this State of the Union address, this campaign speech, by speaking about Ukraine, and about Russia, and about Russian President Vladimir Putin,” Ritter said. Quoting POTUS as saying during the address that America “will not walk away from Ukraine,” Ritter noted that “in many ways, the 46th US president is right.”

“Biden didn’t walk away from Ukraine. He ran away from there, straight into issues about domestic politics because it’s a campaign address, not a State of the Union speech,” the ex-US Marine Corps intelligence officer insisted. He suggested that Biden hinted at the necessity of releasing the $64 billion funding package during the Thursday speech “because it’s tied to domestic American politics and perhaps the most contentious issue of the day, that is border security immigration reform.” The $64 billion package is “being held hostage by Republicans in the House of Representatives. […] If Biden isn’t going to change his approach to immigration, the Republicans aren’t going to release the money – Ukraine isn’t going to get the assistance it needs,” according to the analyst. “America’s running away from Ukraine. And that’s the reality,” Ritter argued, adding that “people need to understand” that the next months will see Biden “almost singularly focused on domestic American policy, trying to differentiate himself from Donald Trump.”

SOTU 2022 23 24
https://twitter.com/i/status/1766125803790794762

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“.. Biden is a “mad, mentally disabled individual who set his mind on dragging humanity to hell.”

• Medvedev Calls Biden a US Disgrace (TASS)

US President Joe Biden should not have mentioned his predecessor Franklin Delano Roosevelt, because, unlike Roosevelt, he only disgraces the US, Russian Security Council Deputy Chairman Dmitry Medvedev said, commenting on the State of the Union address. “In the State of the Union address, Biden compared himself with Franklin Delano Roosevelt. That’s a so-so comparison. Obviously, not in his favour,” Medvedev said on his X page. ” He is the United States’ disgrace!” Medvedev pointed out that, even though the 32nd US President was an infirm man in a wheelchair, “he raised America from the Depression,” while Biden is a “mad, mentally disabled individual who set his mind on dragging humanity to hell.” In addition, the official continued, Roosevelt fought for peace together with allies, including the USSR, while “Biden is actively and persistently trying to start WWIII.” Finally, Roosevelt “was fighting against fascists, but Biden is fighting for them,” Medvedev concluded.

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“There is lie after lie. ‘Ukraine can stop Russia.’ No, it can’t. This has been going on for over two years. ‘NATO is stronger than ever.’ No, it is not … It was crazy talk..”

• Tucker Carlson: Biden’s Address to Congress ‘Most Un-American Speech Ever (Sp.)

US journalist Tucker Carlson on Friday called President Joe Biden’s State of the Union address to Congress “possibly the darkest, most un-American speech” ever delivered by a US president, saying that it had been focused not on US’s national interests, but on pouring billions of dollars into military aid to Ukraine. “That was possibly the darkest, most un-American speech ever given by an American president,” Carlson said during a broadcast published on his X account, calling Biden a “cruel and vicious demagogue.” The US journalist described the president’s address as a “lie,” saying that Biden “quickly explained” that his top priority “has nothing to do with America” and was related to “sending billions more to Ukraine.” “There is lie after lie. ‘Ukraine can stop Russia.’ No, it can’t. This has been going on for over two years. ‘NATO is stronger than ever.’ No, it is not … It was crazy talk,” Carlson said.

Tucker Speaker
https://twitter.com/i/status/1766024481053552951

On Thursday, Biden delivered the State of the Union address to the US Congress. The speech comes amid Washington’s efforts to provide further aid to Ukraine for use in its conflict with Russia. However, some Republican lawmakers have called on Congress and the Biden administration to address border security before approving more foreign aid. The president called on the US Congress to pass a $118 billion foreign aid bill that includes border policy reforms. The bill was blocked by Senate Republicans last month over concerns it did not do enough to resolve the border crisis. Biden also said that his policies are designed to keep drug cartels and human smugglers from profiting off the border crisis.

CNN SOTU

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“..the second place in the State Department went not to the greatest hater of Russia, but to the greatest hater of China..”

• Is This The Real Reason Why Victoria Nuland Quit? (Strokan)

According to Russian Foreign Ministry spokeswoman Maria Zakharova, Nuland was forced to resign because of the failure of Biden’s course on Russia. “This is a failure of the policy associated with Nuland, because she was the central figure who pursued a Russophobic policy towards our country, the whole story was tied to Nuland,” Zakharova said. According to her, the outgoing US deputy secretary of state was “not just a high-ranking representative of the State Department, but a key figure in US interagency cooperation.” “She was a coordinator of anti-Russian sentiment and anti-Russian policy by the United States, especially in the context of Ukraine. I can’t say that she was an ideologue. There are people out there who hate us more, but she really was a coordinator, she is associated with that policy. And that is how they said goodbye to her,” the Russian Foreign Ministry spokeswoman said. Meanwhile, a theory has emerged in Washington that Nuland’s resignation was the result of a power struggle in which she lost the race for the post of first deputy foreign policy chief.

Some pundits see a battle of narratives, with behind-the-scenes jockeying of personalities. All part of a dispute over the long-term shape of US foreign policy and its priorities. It should be recalled that after Wendy Sherman resigned last summer as US deputy secretary of state, her duties were carried out for six months by Nuland. At the end of last year, however, the White House made the unexpected decision to nominate Campbell, another veteran of American diplomacy, for the second post in the diplomatic service. Campbell, who does not have as big a name in the diplomatic world as Nuland, has made his career not in the Euro-Atlantic but in the Indo-Pacific region. “Ms. Nuland was considered the natural candidate to replace Ms. Sherman on a permanent basis. But Mr Blinken nominated Kurt Campbell, the former National Security Council representative for Asia,” the New York Times commented on the reshuffle.

James Carden, a former US State Department official, told RIA Novosti: “I was actually surprised that she lasted as long as she did. I realised her time was up when Kurt Campbell got the second-ranked job at the department.” In a Senate vote on 6 February, his nomination received broad bipartisan support: 92 senators voted in favour, with five voting against. “President Biden’s choice of Kurt Campbell signals a desire to continue the efforts begun by his predecessors decades ago to shift the focus of US foreign policy to China as the major challenge facing America in the future,” AP commented on the reshuffle. “Kurt Campbell played a key role in developing President Barack Obama’s ‘pivot to Asia’ into President Biden’s Indo-Pacific strategy,” Yuri Tavrovsky, chairman of the expert council of the Russian-Chinese Friendship, Peace and Development Committee, told Kommersant.

“In practical terms, he was particularly active in the creation of the anti-Chinese military bloc AUKUS (Australia, the UK and the US) and in strengthening the military component of the QUAD group (Quadrilateral Security Dialogue – Australia, India, the US and Japan,” Tavrovsky said. “The appointment of Campbell to the second-highest post in the State Department demonstrates the White House’s long-term course of containing China, despite words and gestures that look like a desire for reconciliation.” Thus, according to Mr Tavrovsky, “the second place in the State Department went not to the greatest hater of Russia, but to the greatest hater of China.”

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“I think he’s a true believer and actually believes that his status as Warlord-in-Chief helps him politically..”

• Biden Tries to Blame Republicans for Coming Loss of Ukraine (Sp.)

President Joe Biden used his State of the Union speech to blame the Republicans if Russia wins the war in Ukraine by claiming Kiev could have won or survived if the latest $61 billion arms package had not been blocked in Congress, former State Department official and consultant on US-Russia relations James Carden said. “The way I heard the speech was Biden setting the ground to blame the Republicans for losing the war should they block further tranches of funding,” Carden told Sputnik. But Biden was still committed to his confrontational and warmaking policies in Ukraine, the Middle East and elsewhere around the world and showed no sign of wanting to change them, he emphasized. “I think he’s a true believer and actually believes that his status as Warlord-in-Chief helps him politically,” Carden explained.

Biden’s indirect admission that the planned next enormous military aid package for President Volodymyr Zelensky’s increasingly discredited regime in Kiev was blocked on Capitol Hill did not stem from any fundamental reassessment of US policy on backing Ukraine’s war against Russia, he said. Instead, Biden’s comments reflected his always primary concern with domestic politics and his obsession with getting reelected to a second term in November even though he is already 81 years old, Carden clarified. “The results coming out of Michigan, however, disprove his thesis,” Carden said.

Uncommitted voters in the US state of Michigan on Super Tuesday this week registered a protest against Biden and his policies, especially on foreign affairs, security and the invasion of Gaza. Some 100,000 voters, or 20% of those who participated in the Democratic primary alone, cast their ballots as “Uncommitted,” expressing a massive lack of support for the president in his own party with no other serious candidate to choose from. The $61 billion package is being blocked by Republicans in the House of Representatives until Biden changes his policies on illegal immigration and agrees to crack down on it. But because the president is determined not to change course on that, he will not get more aid approved for Kiev, his opponents have said.

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China starts being involved.

• China Wants Russia At Ukraine Peace Talks (RT)

China and Switzerland are working behind the scenes to get Russia invited to proposed Swiss-hosted talks aimed at ending the fighting between Kiev and Moscow, the South China Morning Post reported on Friday, citing people familiar with the matter. Last month, Switzerland announced plans to organize a peace summit “by the summer.” No specific date has been named yet. The number of potential participants has also not been revealed. However, Ukraine indicated that Russia can only be invited if it agrees in advance to a litany of preconditions. According to the news website, China’s envoy for Eurasia Li Hui told EU officials that the summit “can’t be a conference that produces a plan that is pushed down the Russians’ throat.” The sources further told the publication that both China and Switzerland share a “pragmatic” view that the negotiations should not be just a formality.

Unlike many Western countries, Beijing has refused to blame Moscow for the outbreak of hostilities in February 2022, and has stressed that the conflict can only be ended through diplomacy. “The earlier the talks start, the sooner peace will arrive,” Chinese Foreign Minister Wang Yi told reporters at a CCP event in Beijing on Thursday. He added that “the absence of peace talks… may lead to an even bigger crisis.” China proposed a 12-point roadmap to peace in February 2023. The initiative was dismissed by Kiev. Ukrainian President Vladimir Zelensky has, in turn, insisted that a settlement can only be based on the 10-point ‘peace formula’ he unveiled at the end of 2022. Moscow has rejected Zelensky’s terms as unrealistic, arguing that it will never surrender Crimea, which joined Russia in 2014, or the four former Ukrainian regions that did the same in September 2022.

Ukraine and its Western backers have branded the accession referendums “a sham” and accused Russia of illegally occupying Ukrainian lands. They later said that peace can only be achieved on Kiev’s terms. Russian Ambassador to Switzerland Sergey Garmonin told local media in January 2024 that a peace summit without Russian participation would be “doomed to fail.” Moscow maintains that it is open to negotiations but on acceptable terms. According to the South China Morning Post, Chinese envoy Li told his EU counterparts that Moscow had two preconditions for talks – ending Western arms deliveries to Ukraine and the revocation of Zelensky’s 2022 decree that states negotiations with Putin are “impossible.”

https://twitter.com/i/status/1766184754456506811

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If Russia wanted Zelensky dead, he would be. And they sure wouldn’t kill a Greek PM as well, too messy.

“Do not betray… the memory of the Greek Resistance,” Zakharova urged Mitsotakis..”

• We Will Not Be Intimidated By The Kremlin – Greek PM (RT)

The EU will not be intimidated by Russia and will continue to support Ukraine for “as long as it takes,” Greek Prime Minister Kyriakos Mitsotakis has said. Mitsotakis made the comment during his speech at the European People’s Party (EPP) conference in Romania’s capital, Bucharest, on Thursday, a day after his visit to the Ukrainian city of Odessa. During that trip, a Russian missile reportedly hit the port of Odessa 800 meters away from the motorcade in which Ukrainian President Vladimir Zelensky and the Greek PM were traveling. “I was in Odessa yesterday with President Zelensky when a Russian ballistic missile hit the port during our visit to the facility and I think we all have a message for the Kremlin: We shall not be intimidated,” Mitsotakis vowed.

He described the conflict between Russia and Ukraine as “Europe’s darkest hour,” claiming that the EU’s determination to back Kiev and place sanctions on Moscow was “maybe unexpected for some of our enemies.” Russian Foreign Ministry Spokeswoman Maria Zakharova responded to Mitsotakis’ statements in a post on Telegram on Thursday, insisting that “we [Moscow] never intimidated and aren’t intimidating anybody, including Greece.” She pointed out that Europe was not always the same throughout its history. “The Third Reich was also Europe. And for such a ‘Nazi Europe,’ we will always be an enemy,” the spokeswoman stressed. Zakharova recalled how during music lessons at her Russian school she used to study the works of Mikis Theodorakis, a legendary Greek composer most famous for Sirtaki dance music. “He, too, was an enemy of Europe, Nazi Europe,” she said.

Theodorakis was once a symbol of the resistance to the right-wing military dictatorship known as the Regime of the Colonels, which ruled Greece in the late 1960s and early 1970s. During that time, his music was banned; the composer was imprisoned for five months and eventually forced into exile. “Do not betray… the memory of the Greek Resistance,” Zakharova urged Mitsotakis. The EU has given Ukraine around 88 billion euros ($96.2 billion) since the start of the conflict in February 2022. Russian officials have repeatedly warned that the foreign aid provided to Kiev will not prevent Moscow from achieving the goals of its military operation, and will only prolong the fighting and increase the risk of a direct confrontation between Russia and NATO.

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“If you knew that your power, status and legitimacy emanated from supranational interests, to whom would it be natural to show your loyalty? To the people?”

• Europe Is in Danger of Falling Asleep in Peace and Waking Up in War (Dinisio)

No wonder, then, that Ursula herself is so fervently anti-Russian and Atlanticist. Of course, between 1992 and 1996 she lived at Stanford (again Stanford) in California, where she studied economics. Poland’s own Donald Tusk was part of an Independent Students’ Association set up in 1980, financed by the same people as before, which aimed to subvert Poland’s then socialist regime from within the academy. Later, it was members of this truly “independent” “association” who, on the ground, supported the organization of the Orange Revolution in Ukraine. In other words, what we see in Ukraine today is the result of a wide-ranging project to break up and submit Europe to the neoliberal, hegemonic and imperial interests of the USA. This European “shield”, as we can see, is built by a group that functions almost like a secret society, endowed with deep internal cohesion, based on the narcissistic feeling of election, exclusivity and belonging to an elite group, trained to lead, trained to manage the supranational interests of the monopolist state par excellence, the USA.

Now, imagine yourself in a group of people who, in addition to the fact that many belong to the wealthiest classes or the political aristocracy, are also inculcated, through the countless institutional resources at their disposal, with the idea that they are part of a restricted group, placed above the common man, destined to decide on behalf of the monopoly interests that hire them. Imagine that, belonging to such an elite, the common mistake, which normally costs a career, honor and even life, for these people is nothing more than a setback on the way to the top. Put in a position like this, how would they behave? With a sense of responsibility? Or with a total sense of impunity? If you knew that your power, status and legitimacy emanated from supranational interests, to whom would it be natural to show your loyalty? To the people?

The way in which the U.S., and the monopoly interests that make up its system of power, have subverted any idea of strategic autonomy for the EU, throwing us all onto a front line that is not designed to protect our interests, but their own, has consisted of handing over high politics, not to the most experienced statesmen, the most emerging leaders of the masses, or the most capable and competent public officials, but instead to a socially isolated Spartan strain (only in terms of organization, not customs), made up of careerists, incapable of distinguishing between public and private, national or international interests. For them, the interests of public affairs are confused with their own, and their own with those of their sponsors. They are one and the same, in a vicious cycle in which who wins and who loses is determined from the outset.

And if the actions of this privileged, elitist, segregationist and exclusivist group in terms of the European economy have the results in plain sight, when it comes to foreign policy, their actions also show what project their loyalties are expressed for. Victoria Nuland came to Europe to demand a show of support and received it in the form of a Macron who, summoning all the European leaders to the Elysée Palace, tried to discuss the possibility of sending European troops to Ukraine. If it weren’t for Robert Fico, who apparently doesn’t see himself in this select group of yuppies, we wouldn’t know that the leaders in whom the people of Europe are supposed to trust are discussing, behind closed doors and behind the backs of the very democracy with which they fill their mouths, something like the fuse that could ignite a third world war. In other words, they are discussing among themselves the use of Europe as a shield for the American sword, with total contempt for those they claim to govern.

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“Western political leaders are only digging a deeper hole for their eventual collapse..”

• Fearful Electioneering Turbo Charges Western Warmongering (SCF)

Western states are facing an acute political crisis whereby their established governing parties and leaders are fighting for survival amid a grave loss in legitimacy in the eyes of their electorates. In the United States, incumbent President Joe Biden is vying for reelection in November with historically lowest poll numbers ever for an occupant of the White House. Meanwhile, across the European Union, governing parties and leaders are braced for a drubbing from parliamentary elections in June. The roots of this unprecedented loss of legitimacy among Western political establishments are manifold. But surely one cause is the rank hypocrisy of Western leaders that has now been laid bare. How can political figures expect to have any moral authority when they are seen to be inveterate liars and shamelessly corrupt? Western governments and their servile media lecture about “democracy”, “human rights” and upholding “law and order”. They claim to be motivated by such principles in their support of Ukraine against alleged Russian aggression.

Yet these same governments are complicit in the genocide of Palestinians in Gaza through their unwavering support for the Israeli regime. Western leaders have been fatally exposed and compromised by the conflict in Ukraine and Gaza. The contradiction is terminal. That’s not just because of the blatant double standards and duplicity. Western voters are increasingly disgusted by the relentless financial and military support funneled into Ukraine to prop up a scamming regime comprised of NeoNazi ideologues. Under Joe Biden and the incumbent European politicians, the West has flooded Ukraine with weapons and hundreds of billions of dollars in what is the biggest war racket ever. This is while Western populations, workers, farmers, and businesses are hard-pressed with numerous social and economic burdens. Western governing parties are rightly seen as elitist and serving powerful minority oligarchic interests such as the military-industrial-corporate-financial nexus. Their declared vows about democracy are a contemptible joke.

The war in Ukraine is increasingly understood by voters to be a disastrous proxy war of choice that was pushed by U.S. and Western imperial objectives to confront Russia. Despite the squandering of public money to propagate the war, the U.S.-led NATO axis has lost its “great game”. The proxy war has devastated Ukraine, causing up to 500,000 military deaths in two years, as well as destabilizing the rest of Europe from increased migration, fiscal impact, deindustrialization, and the shattering of agricultural industries. Western populations are furious with their political leaders for having inflicted such chaos and waste of resources – as well as wantonly provoking tensions in international relations with Russia. Western politicians have pushed the world to the brink of an all-out war between nuclear powers. All this crazed folly is based on utter lies and deception – as the horror of Gaza and Western complicity illustrates. In this cauldron of electoral revolt, Western political leaders are only digging a deeper hole for their eventual collapse.

American President Joe Biden in his State of the Union address this week made a disingenuous pitch to voters. He portrayed the world as facing an existential crisis from Russian “tyranny” and simultaneously claimed the fate of US democracy was under threat from his election rival Donald Trump. In a dangerous and desperate move, Biden is conflating Trump with alleged Russian aggression. The Democrat president is fighting for political survival against Republican presumptive nominee Trump primarily because Biden is so deeply unpopular among American citizens. To boost his election prospects, Biden is making out that the country is facing an “inflection point” that requires rejection of Trump because he is “bowing down” to Russia. Trump and many within the Republican Party are opposed to continuing the proxy war in Ukraine, recognizing that it is futile.

Biden and the Democrats, who are more aligned with the U.S. foreign policy establishment, are therefore trying to make the election about an existential “defense of world democracy and peace”. Biden claimed in his State of the Union address that if the U.S. does not supply Ukraine with another $60 billion more in military aid then Russia will overrun the rest of Europe. Biden even invoked the memory of Roosevelt supposedly facing down Nazi Germany in 1941.

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“..Israel has the green light from this White House to commit the worst and most flagrant genocide since the Second World War..”

• Biden Parachutes TV Dinners Into Gaza. Sounds Absurd? It Is (SCF)

It’s a classic American public relations stunt. All show and drama signifying nothing else. President Joe Biden ordered U.S. military transport planes to airdrop food aid into Gaza purportedly to save starving people. Well, they’re starving to death because the United States is supporting the genocidal siege by the Israeli regime of 2.3 million people for nearly five months. The situation is unprecedented, invoking the worst crimes of Nazi Germany. Babies dying in hospitals from lack of food and water. And all due to American support for the Israeli regime carrying out this genocide. But, hey, come on, drop those food parcels. It sort of looks good. The C-130 cargo planes throw bails of ready-made dinners into the sky, which slowly descend on parachutes to the desperate masses on the ground. It’s the kind of Hollywood narcissistic depiction of American greatness always riding to the rescue. Pass the popcorn and soda.

Only when you think about it, the whole airdrop mission is absurdly inadequate. The U.S. Air Force has parachuted in 38,000 dinners to Gaza so far, and more are reportedly on the way. That’s only crumbs for millions of people who are starving to death because the U.S.-backed Israeli regime has blocked the hundreds of food aid trucks that should be entering Gaza daily. When a trickle of aid deliveries are permitted on the ground, the Israeli military has opened deadly fire on hungry Palestinians clambering for relief. International aid agencies have slammed the airdropped relief supplies as an inefficient way to meet the dire humanitarian needs in Gaza. Besides, the real target of the Biden administration’s relief effort is the American people who are disgusted by the complicity of Washington in genocide.

The public relations exercise of parachuting food into Gaza is meant to appease the growing criticism of Biden’s White House. As Joe Biden squares up to Donald Trump in the U.S. presidential election this November, the incumbent Democrat is in real danger of losing. Biden’s poll ratings have been flagging anyway, and especially over the horrendous disaster in Gaza. Younger voters and Muslim Americans who would normally vote Democrat are alienated by Biden’s craven complicity in the Israeli siege of Gaza. For months, Biden has refused to call on the Israeli regime of Benjamin Netanyahu to implement a ceasefire and let humanitarian aid into Gaza. The U.S. has blocked three UN Security Council resolutions demanding a cessation of military operations. In recent days, however, U.S. Vice President Kamala Harris finally voiced support for a ceasefire. And then we see the American Air Force dropping off food supplies.

The belated moves are as cynical as they can get. They’re only motivated by Biden’s political need to bolster his electoral campaign. This week, it was reported that the Biden administration has secretly overseen over 100 separate weapons supply deals to Israel since it began its offensive on Gaza in October. Those sales amount to thousands of munitions including bunker-buster bombs, artillery shells, and other types of lethal ordnance. The transfers have been deliberately kept quiet by Biden owing to the potential public outcry. President Biden and his senior aides like Secretary of State Antony Blinken have refused to impose any conditions on Israel for the use of American weapons. Thus, Israel has the green light from this White House to commit the worst and most flagrant genocide since the Second World War. Not only merely permission but actual material support to enable the horror that has killed over 30,000 people – 70 percent of whom are women and children.

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They’re now saying he was campaigning on Jan 6, so no immunity.

• DC Court Greenlights Flurry of Jan. 6 Lawsuits Against Trump (ET)

A federal appeals court in the District of Columbia has issued an order allowing three Jan. 6 lawsuits to proceed against former President Donald Trump after a court rejected his assertion of presidential immunity. A three-judge panel at the U.S. Court of Appeals for the District of Columbia Circuit issued an order on March 8, allowing the three consolidated appeals to be “removed from abeyance” and approving motions for summary affirmance, meaning removing a temporary hold on the cases and allowing them to proceed. The lawsuits that are now allowed to proceed are Moore v. Trump, Kirkland v. Trump, and Tabron v. Trump. In all three civil suits, law enforcement officers are seeking damages based on the premise that President Trump incited a mob to storm the Capitol, leading to a violent incident in which they sustained various injuries and suffered harm, including emotional distress.

President Trump has denied calling for violence on Jan. 6, pointing to remarks he made encouraging his supporters to demonstrate “peacefully and patriotically.” The judges noted in their March 8 order that the merits of the three parties’ positions “are so clear as to warrant summary action,” and that the cases can proceed based on a Dec. 1 appeals court decision in Blassingame v. Trump that President Trump is not immune to lawsuits over the Jan. 6, 2021, breach of the U.S. Capitol. In Blassingame v. Trump, the former president’s attorneys had argued that he should be granted immunity because his alleged actions around Jan. 6 amounted to official speech on “matters of public concern.” The judges’ reasoning in that case was that the former president’s actions leading up to and on Jan. 6 were part of his campaign for a second term in the White House and not an official presidential act.

“In arguing that he is entitled to official-act immunity in the cases before us, President Trump does not dispute that he engaged in his alleged actions up to and on January 6 in his capacity as a candidate. But he thinks that does not matter,” U.S. Circuit Judge Sri Srinivasan, appointed under President Barack Obama, wrote in the Dec. 1 ruling. “Rather, in his view, a president’s speech on matters of public concern is invariably an official function, and he was engaged in that function when he spoke at the January 6 rally and in the leadup to that day. We cannot accept that rationale.”

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$91 million just to have the right to appeal a ludicrous case.

• Trump Coughs Up $91 Million Bond, Appeals E. Jean Carroll Defamation Suit (ZH)

Former President Trump posted a bond of $91.6 million on Friday while appealing the recent verdict in advice columnist E. Jean Carroll’s defamation lawsuit. “President Trump respectfully requests that this Court recognize the supersedeas bond obtained by President Trump in the sum of $91,630,000.00 and approve it as adequate and sufficient to stay the enforcement of the Judgment, to the extent that the Judgment awards damages, pending the ultimate disposition of President Trump’s appeal,” Trump attorney Alina Habba wrote in court filings. In January, Trump was ordered to pay Carroll $83.3 million for defaming her in 2019, when he denied sexually assaulting her three decades earlier. The decision came after a separate jury ruled that Trump was liable for sexually abusing Carroll, which led to him paying her $5.5 million in cash – which he’ll get back also if he wins on appeal.

Carroll, 80, testified that Trump’s lies destroyed her reputation for telling he truth. “I am here because Donald Trump assaulted me, and when I wrote about it, he said it never happened,” Carroll said, adding “He lied, and it shattered my reputation.” During Trump’s trial, Judge Lewis A. Kaplan and the former president got into frequent verbal altercations – with Kaplan at one point threatening to toss the former president out of the courtroom if he wouldn’t keep his mouth shut. Kaplan also told Habba to “sit down” after she requested an adjournment tomorrow so Trump could attend his mother-in-law’s funeral – a request Kaplan had previously denied. And once Carroll ‘won’ the $83.3 million, she went on a disgusting ‘price is right’ diatribe over how she’ll spend her ‘winnings.’

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“President Trump did in fact offer 10,000 National Guard troops to secure the U.S. Capitol, which was turned down..”

• Jan 6 Comm. Hid Exonerating Evidence Of Trump’s Push For National Guard (Fed.)

Former Rep. Liz Cheney’s January 6 Committee suppressed evidence that President Donald Trump pushed for 10,000 National Guard troops to protect the nation’s capital, a previously hidden transcript obtained by The Federalist shows. Cheney and her committee falsely claimed they had “no evidence” to support Trump officials’ claims the White House had communicated its desire for 10,000 National Guard troops. In fact, an early transcribed interview conducted by the committee included precisely that evidence from a key source. The interview, which Cheney attended and personally participated in, was suppressed from public release until now. Deputy Chief of Staff Anthony Ornato’s first transcribed interview with the committee was conducted on January 28, 2022. In it, he told Cheney and her investigators that he overheard White House Chief of Staff Mark Meadows push Washington D.C. Mayor Muriel Bowser to request as many National Guard troops as she needed to protect the city.

He also testified President Trump had suggested 10,000 would be needed to keep the peace at the public rallies and protests scheduled for January 6, 2021. Ornato also described White House frustration with Acting Secretary of Defense Christopher Miller’s slow deployment of assistance on the afternoon of January 6, 2021. Not only did the committee not accurately characterize the interview, they suppressed the transcript from public review. On top of that, committee allies began publishing critical stories and even conspiracy theories about Ornato ahead of follow-up interviews with him. Ornato was a career Secret Service official who had been detailed to the security position in the White House. Cheney frequently points skeptics of her investigation to the Government Publishing Office website that posted, she said, “transcripts, documents, exhibits & our meticulously sourced 800+ page final report.” That website provides “supporting documents” to the claims made by Cheney and fellow anti-Trump enthusiasts.

However, transcripts of fewer than half of the 1,000 interviews the committee claims it conducted are posted on that site. It is unclear how many of the hidden transcripts include exonerating information suppressed by the committee. Those documents support the committee’s narrative rather than the truth of the events leading up to January 6, 2021, said Rep. Barry Loudermilk, chairman of the House Administration’s Subcommittee on Oversight. “The former J6 Select Committee apparently withheld Mr. Ornato’s critical witness testimony from the American people because it contradicted their pre-determined narrative. Mr. Ornato’s testimony proves what Mr. Meadows has said all along: President Trump did in fact offer 10,000 National Guard troops to secure the U.S. Capitol, which was turned down,” said the Georgia Republican.

His subcommittee is reviewing the work of the January 6 committee, which has been accused of other unethical behavior at the expense of accuracy, as well as collusion with other Democrat efforts to prosecute political opponents. “This is just one example of important information the former Select Committee hid from the public because it contradicted what they wanted the American people to believe,” Loudermilk said. “And this is exactly why my investigation is committed to uncovering all the facts, no matter the outcome.”

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Rothschild

 

 

Mother horse letting the kids play
https://twitter.com/i/status/1765841061853933747

 

 

Porcupine
https://twitter.com/i/status/1765839839973290316

 

 

Eagles
https://twitter.com/i/status/1766114575017971852

 

 

 

 

Pigcasso

 

 

Jaguar Puma

 

 

Kittens

 

 


Found in the Pirin Mountains of southwestern Bulgaria

 

 

Knife-billed puffin..
https://twitter.com/i/status/1766170916298301740

 

 

Hold this

 

 

Helping

 

 

 

 

Support the Automatic Earth in wartime with Paypal, Bitcoin and Patreon.

 

 

 

 

 

Debt Rattle March 8 2024

Mar 082024
 
 March 8, 2024  Posted by at 9:05 am Finance Tagged with: , , , , , , ,  36 Responses »


Pablo Picasso The Rooster 1938

 

• Biden Delivers The “Darkest, Most Un-American Speech Given By A President” (ZH)
• Was Neocon Anti-Russia Hawk Queen Victoria Nuland Forced Out? (Miles)
• Nuland’s Successor Should Scare Zelensky (Dmitry Bavyrin)
• Nuland’s Resignation Means Hard Times Ahead for Ukraine (Sp.)
• Nothing In Nuland’s Life Became Her Like The Leaving Of It (Helmer)
• The West’s Reckoning? (Michael Brenner)
• US Couldn’t Handle Being The Sole Superpower – Putin (RT)
• Ukraine Sends Fired Top General Zaluzhny To London (RT)
• Cameron Wants to Steal Russian Assets as ‘Surety’ to Bail Out Ukraine (Sp.)
• What Repercussions Could Reintroduction of Conscription in Germany Bring? (Sp.)
• Global South Youth Flocks to ‘Isolated’ Russia (Pepe Escobar)
• NYT Faces Claims of Hypocrisy Over Coverage of the Deployment of Troops (Turley)
• Rep. Gaetz Accuses Jack Smith of Election Interference (ET)
• Bill Would Strip COVID-19 Vaccine Manufacturers of Liability Protection (ET)

 

 

 

 

Trump SOTU
https://twitter.com/i/status/1765810329265602675

 

 

 

 

HUMAN TRAFFICKING
https://twitter.com/i/status/1765709918403793160

 

 

 

 

2029

 

 

Voter ID

 

 

 

 

Why Dennis Kucinich LEFT RFK Jr.’s Campaign (and much more)

 

 

 

 

Dark Brandon. Best part of Tucker Carlson is the 2nd half with Alex Jones.

• Biden Delivers The “Darkest, Most Un-American Speech Given By A President” (ZH)

Having successfully raged, ranted, lied, and yelled through the State of The Union, President Biden can go back to his crypt now. Whatever ‘they’ gave Biden, every American man, woman, and the other should be allowed to take it – though it seems the cocktail brings out ‘dark Brandon’?

Biden’s Speech tonight …
• Fund Ukraine.
• Trump is threat to democracy and America itself.
• Abortion is good.
• American Economy is stronger than ever.
• Inflation wasn’t Biden’s fault.
• Illegals are Americans too.
• Republicans are responsible for the border crisis.
• Trump is bad.
• Biden stands with trans-children.
• J6 was the worst insurrection since the Civil War.
(h/t @TCDMS99)

Tucker Carlson’s response sums it all up perfectly: “that was possibly the darkest, most un-American speech given by an American president. It wasn’t a speech, it was a rant…” Carlson continued: “The true measure of a nation’s greatness lies within its capacity to control borders, yet Bid refuses to do it.” “In a fair election, Joe Biden cannot win”. And concluded: “There was not a meaningful word for the entire duration about the things that actually matter to people who live here.” Victor Davis Hanson added some excellent color, but this was probably the best line on Biden: “he doesn’t care… he lives in an alternative reality.”

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Victoria Nuland was involved in US politics in Eastern Europe and Russia for well over 30 years. Ukraine was her baby. Now it’s clear it’s not a big success. How desperate was she? Ray McGovern thinks perhaps the White House was afraid she would be “..attempting to contrive a highly escalatory attack on a nuclear power without approval from her superiors in the State Department..”

She goes, so does US Ukraine policy. Not a trifle matter.

• Was Neocon Anti-Russia Hawk Queen Victoria Nuland Forced Out? (Miles)

Mass speculation has emerged after the sudden announcement this week that influential US Under Secretary of State Victoria Nuland would be resigning from her position in the Biden White House. The surprising development came Tuesday amidst a difficult moment for US President Joe Biden. Former President Donald Trump has maintained a steady lead over Biden in opinion polling as questions remain about the octogenarian head of state’s ability to serve a second term. Cracks have also begun to show in Biden’s political coalition as pro-Palestine activists urge a show of defiance against the president’s foreign policy in state primary contests. The problems extend to the personnel of Biden’s Cabinet as a scandal has arisen over Defense Secretary Lloyd Austin’s lack of transparency over health issues.

With the president facing challenges on multiple fronts, why would the White House choose this moment for a staff shakeup? Former US Central Intelligence Agency analyst Ray McGovern speculated the answer may lie in disagreements between Biden administration officials and the notoriously strong-willed Nuland during a discussion on Sputnik’s The Critical Hour program Wednesday. “The CIA would have, the NSA would have those conversations as well,” said McGovern, referring to leaked recordings of discussions between Nuland and German Defense Minister Boris Pistorius that appeared to reveal plans for an imminent attack on Russian soil. The leaks generated significant embarrassment for German officials as attention was drawn to Chancellor Olaf Scholz’s support for the Ukraine proxy conflict.

Nuland’s bellicose rhetoric may suggest she was going rogue, according to McGovern, attempting to contrive a highly escalatory attack on a nuclear power without approval from her superiors in the State Department. “My best guess here is that the CIA and the Defense Department and the NSA got this message around saying, ‘look, Victoria’s got her own agenda here,’” said the analyst. “‘The president doesn’t really want to strike these ammo depots in Russia or knock down the [Crimean] Bridge. So we got to rein her in, I guess it’s time for her to go to early retirement.’”

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“..promising her a place in the history books because of the role she has played in the events around Ukraine..”

• Nuland’s Successor Should Scare Zelensky (Dmitry Bavyrin)

US Deputy Secretary of State Victoria Nuland is retiring from the civil service. She was responsible for relations with Russia back in the days of the first Yeltsin government, but all-Russia fame came to her after the distribution of “cookies” on the Maidan. There are serious reasons why Nuland chose retirement, even though she was destined for the Secretary of State’s chair. And the President of Ukraine has reason to be apprehensive of the candidacy of her replacement. Formally, Victoria Nuland was only the fourth [in fact third] in the US diplomatic hierarchy, but in terms of her real influence she is comparable to the Number-1 — Secretary of State Antony Blinken, whose place, according to rumours, she was aiming for. They are close in views, but belonged to different clans, and Nuland loomed over Blinken like a Nemesis: if it was decided to write off all the foreign policy failures of the Biden period and remove Blinken from office, the State Department would certainly go to her.

She is only a year older than Blinken, but as a diplomat she is old enough to be his mother. He is more of an armchair theorist than a practitioner, more of a “hand-me–down” to politicians than a politician, whereas Nuland usually worked “on the front line” – in secure situation rooms around the world, being a career ambassador in both the Russian and American sense of the term. In Russia, this means that the individual entered the diplomatic service not from the outside (for example, as a political appointee), but through specialized education and climbed the ladder of the ranks of the Ministry of Foreign Affairs. And in the United States, this is something like the principal title of honour for diplomats – a sign not only of merit, but also of the highest professional qualifications. Since 1956, only six dozen people have received this honorific, and Nuland is one of the most famous on the list.

She was good at her job; had been responsible for important areas for Washington for decades – NATO, Russia, Ukraine; it was as if she was born someday to become head the State Department, and best of all now, when it is especially fashionable to appoint women. However, President Joe Biden is stubbornly sticking to Blinken, whom he has known for a long time and intimately. He trusts him and he does not want to replace him with stronger and more independent characters like Nuland. Nevertheless, the Secretary of State must have breathed a sigh of relief when he received Nuland’s resignation letter. The fact that Blinken himself announced the departure of his likely rival for the succession seems to indicate his desire to cut off her escape route and the opportunity to change her mind.

Whether this is true or not, he did not skimp on compliments, calling Nuland “exceptional” and promising her a place in the history books because of the role she has played in the events around Ukraine. There may also be a place for that in Russian textbooks, only with different emphasis. Nuland became famous on our side of the Pacific Ocean and the Atlantic when she distributed cookies to Euromaidan protesters on the eve of the [February 21, 2014 Kiev] coup. And this fame was supported by the fact that she continued to oversee the Ukrainian direction and was Washington’s main negotiator with Moscow on all issues arising from this. The beginning of the Special Military Operation is her personal failure. Nuland tried to prevent such a turn of events, but could not maintain the necessary degree of control over the self–willed Ukrainian government. She also allegedly wanted to prevent the resignation of the Commander-in-Chief of the Armed Forces of Ukraine, Valery Zaluzhny, and also failed.

Shortly after that, Nuland ceased to act as Blinken’s Deputy Secretary of State and the Number-2 person in the State Department; she had been formally considered the replacement [for Wendy Sherman] in this position and lasted six months before Kurt Campbell was appointed; now, a month later, she resigns from her “post number four” [three], that is, definitively. It is unlikely that this fall is due to failures. There are many failures in Nuland’s career, primarily because she worked in the most difficult areas. It’s much more like escaping from a sinking ship, when the ship is the Joe Biden administration. It seems unlikely that he will be able to win the presidential election in eight months’ time. In Nuland’s eyes, he may be altogether non-credible now, since she interacts with “old Joe” personally and is more privy to his medical diagnosis than many others. And with the return of Donald Trump to the White House, continuation of her work in the State Department is incompatible, despite her experience and seniority.

Read more …

“..Nuland’s resignation means the Kiev regime has definitely lost a very influential supporter..”

• Nuland’s Resignation Means Hard Times Ahead for Ukraine (Sp.)

Secretary of State Antony Blinken announced on March 5 that Victoria Nuland, a US official known for her ardent support to the Kiev regime, decided to step down in coming weeks. US career diplomat John R. Bass was picked as her temporary replacement, while the American media believes that Team Biden is likely to tap current US ambassador to NATO Julianne Smith to fill Nuland’s shoes in the near future. “Given what a staunch anti-Putinist Nuland was and how fervently she wanted to continue to utilize Ukraine as a platform in which to continue to weaken and/or slight Russia on the global stage — and perhaps even up the ante in that conflict with her support of sending ballistic missiles into Ukraine,” Dr. Matthew Crosston, professor of national security and director of academic transformation at Bowie State University, told Sputnik.

The academic said it was likely Nuland had become frustrated with the loss of support for her pet project in the US Congress, which has blocked the White House’s request for more than $60 billion in additional military aid to the Kiev regime. “She undoubtedly understood that if American support lessens or wanes, Ukraine loses, period,” Crosston pointed out. “Perhaps she did not want to be in the Administration that would be responsible for that outcome.” Nuland’s decision to step down was a surprise, as CIA veteran Larry Johnson told Sputnik this week. Her temporary replacement, John R. Bass, is little-known internationally. The US career diplomat served as an American ambassador in post-war Georgia and during a botched coup in Turkiye. In both countries he came under heavy criticism for meddling in those nations’ domestic affairs. Bass was also a hot-swap replacement for then acting Ambassador in Afghanistan during Team Biden’s botched withdrawal from the region in August 2021. Now he is expected to oversee the Ukraine crisis.

“Everyone seems to be emphasizing his ‘acting’ role, which in America always implies a temporary status where he will eventually be replaced by someone else more permanently,” stressed Crosston. “So I am not entirely sure that Bass is going to be the holder of any great responsibility in terms of formulating new policy in the role.” In light his role in the chaotic and bloody evacuation of Kabul, Bass’ new assignment is a hint that the US was about to abandon Ukraine as well. “It creates some new speculation beyond the standard ‘send more weapons to Ukraine. mantra that has existed so intensely for the last year,” the professor argued. While Crosston did not think Bass’ appointment automatically means that US is going to throw Ukraine down the drain, but Nuland’s resignation means the Kiev regime has definitely lost a very influential supporter. “One thing is certain: as long as Nuland remained in that chair, there was literally no chance such talk could even be theorized. Now it can,” the professor said.

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“..the reason for Nuland’s exit is either that she was forced out, principally by the Joint Chiefs of Staff before she could do more damage to US military assets in Europe; or that she decided not to be in office when the Articles of Capitulation are signed between Kiev, Lvov, and Moscow.”

• Nothing In Nuland’s Life Became Her Like The Leaving Of It (Helmer)

As enemies go, Victoria Nuland (lead image), the Under Secretary of State for Political Affairs, was as threatening for Russia as the Thane of Cawdor was for Scotland and Macbeth in Shakespeare’s play about multiple homicide to capture state power. Cawdor repented for his treason in the moment before he died on the scaffold. His execution then allowed Macbeth to take Cawdor’s title and assets for himself, then move on to murder the Scottish king, and replace him until Macbeth was killed himself. The murdering Nuland has committed was foretold by many more sources than the three witches in Shakespeare’s plot. But if Nuland has witchly premonitions, she lacks Macbeth’s and Lady Macbeth’s sleepwalking guilt. In Nuland’s case, it is plain that as her murdering has accelerated, she has been gorging herself with food. In the play Lady Macbeth succumbed and then killed herself offstage. Nuland has just left the stage one hundred pounds heavier than when she entered it.

Not auspicious, according to the Heart Foundation. The script of Nuland’s exit is also not Shakespearian in quality. There is not a single Washington journalist or analyst whose job it has been for years to follow the scheming inside the State Department to report what those in a position to know believe is the reason for Nuland’s hasty “resignation”, as it is being called by the Washington Post, the New York Times, and the Secretary of State, Antony Blinken. His public obituary started with the idea that he had been taken by surprise when Nuland “has let me know that she intends to step down in the coming weeks”; it ended with the immediate naming of Nuland’s replacement, and her tombstone inscribed with “the lasting mark she’s made on this institution and the world.”

For the haste of her exit; for its timing late in the US presidential election campaign and as the Ukrainian military collapses, no one in a position to know believes Nuland’s reasons as they have been leaked by reporters close to her – that her ambition had been offended by her failure to be promoted from Number-3 to Number-2 at State; that her feminism was violated by the non-promotion; and that her Russia warmaking had been subordinated by the higher priority of the White House to fight China. Nor is her departure a case of avoiding blame for the failure of US policy in the Ukraine and in Europe, as the Russian Foreign Ministry spokesman, Maria Zakharova, declared yesterday. Nuland is responsible for “the fiasco of American foreign policy”, Zakharova said. “The bet was a huge one. Everything was staked by the liberal Democrats starting with Barack Obama. That bet has now been lost. An absolute fiasco — the rush by V.A. Zelensky begging for at least something more — the White House rejecting his requests — discord everywhere in NATO… No one has a clear idea what to do…A complete fiasco.”

Zakharova didn’t claim that the US and NATO leaders, their military staffs, and political advisors lack clarity on what they don’t want to risk – that’s to continue the war which Nuland has been promoting, and to escalate it with new weapons on the Ukrainian battlefield, and by attacks deep into Russia itself with nuclear-capable missiles like the German Taurus and US F-16s. If that is what the Russians think is happening and if they are correct – re-read the double negative — then the reason for Nuland’s exit is either that she was forced out, principally by the Joint Chiefs of Staff before she could do more damage to US military assets in Europe; or that she decided not to be in office when the Articles of Capitulation are signed between Kiev, Lvov, and Moscow.

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“..defeat in Ukraine, genocide in Palestine. The first is humiliating, the other shameful..”

• The West’s Reckoning? (Michael Brenner)

Western leaders are experiencing two stunning events: defeat in Ukraine, genocide in Palestine. The first is humiliating, the other shameful. Yet, they feel no humiliation or shame. Their actions show vividly that those sentiments are alien to them – unable to penetrate the entrenched barriers of dogma, arrogance and deep-seated insecurities. The last are personal as well as political. Therein lies a puzzle. For, as a consequence, the West has set itself on a path of collective suicide. Moral suicide in Gaza; diplomatic suicide – the foundations laid in Europe, the Middle East and across Eurasia; economic suicide – the dollar-based global financial system jeopardized, Europe deindustrializing. It is not a pretty picture. Astoundingly, this self-destruction is occurring in the absence of any major trauma – external or internal. Therein lies another, related puzzle.

Some clues for these abnormalities are provided by their most recent responses as deteriorating conditions tighten the vise – on emotions, on prevailing policies, on domestic political worries, on ginger egos. Those responses fall under the category of panic behavior. Deep down, they are scared, fearful and agitated. Biden et al in Washington, Macron, Schulz, Sunak, Stoltenberg, von der Leyen. They lack the courage of their stated convictions or the courage to face reality squarely. The blunt truth is that they have contrived to get themselves, and their countries, in a quandary from which there is no escape conforming to their current self-defined interests and emotional engagement. Hence, we observe an array of reactions that are feckless, grotesque and dangerous.

Exhibit 1 is French President Emmanuel Macon’s proposed plan to station military personnel from NATO members within Ukraine to serve as a tripwire. Arrayed as a cordon around Kharkov, Odessa and Kiev they are meant to deter advancing Russian forces from moving on those cities for fear of killing Western soldiers – thereby risking a direct confrontation with the Alliance. It is a highly dubious idea that defies logic and experience while tempting fate. France long has deployed members of its armed forces in Ukraine where they programed and operated sophisticated equipment – in particular, the SCALP cruise missiles. Scores were killed by a Russian retaliatory strike a few months ago that destroyed their residence. Paris cried ‘holy murder’ for Moscow’s unsporting conduct in shooting back at those attacking them. It was retaliation for the French participation in the deadly bombing of the Russian city of Belgorod. Why then should we expect that the Kremlin would abandon a costly campaign involving what they see as vital national interests if uniformed Western troops were deployed in a picket line around cities? Would they be intimated into passivity by spiffy uniforms assembled under outsized banners inscribed with the slogan: “DON’T MESS WITH NATO”?

Moreover, there already are thousands of Westerners bolstering the Ukrainian armed forces. Roughly 4 – 5,000 Americans have been performing critical operational functions from the outset. The presence of a majority predates by several years the onset of hostilities 2 years ago. That contingent was augmented by a supplementary group of 1,700 last summer which was as a corps of logistic experts advertised as mandated to seek out and eradicate corruption in the black-marketing of pilfered supplies. The Pentagon people are sown thought the Ukrainian military from headquarters planning units, to advisers in the field, to technicians and Special Forces. It is widely understood that Americans have operated the sophisticated HIMARS long-range artillery and the Patriot air defense batteries. This last means that members of the U.S. military have been aiming – perhaps pulling the trigger on – weapons that kill Russians. In addition, the CIA has established a massive, multipurpose system able to conduct a wide range of Intelligence and operational activities- independently as well as in conjunction with the Ukrainian FSB. That includes tactical Intelligence on a day-by-day basis. We don’t know whether they had a role in the campaign of targeted assassinations inside Russia.

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“..the “desire for independence and protection of one’s sovereignty still breaks through to the surface. This is inevitable for the whole of Europe..”

• US Couldn’t Handle Being The Sole Superpower – Putin (RT)

The United States was unable to manage the responsibility of being the world’s only superpower after the Cold War ended, Russian President Vladimir Putin said at the World Youth Festival (WYF) on Wednesday. The WYF runs in Sochi from March 1-7, hosting some 20,000 young people from Russia and abroad for sporting and cultural events, competitions and panel discussions. Addressing participants at the festival, Putin noted that after the collapse of the Soviet Union in 1991, the US elite had an opportunity to take advantage of their new “monopoly on world leadership.” “I believe that the United States has failed to handle the burden of responsibility that fell on its shoulders. The president predicted that as the multipolar world develops, “fundamental changes will also occur in Europe.” Despite the current hierarchy in the Western world, the “desire for independence and protection of one’s sovereignty still breaks through to the surface. This is inevitable for the whole of Europe,” the president noted.

The expansion of the BRICS alliance has been viewed by many economists as marking the end of undisputed US hegemony in the international arena. “The growing appetite for an alternative to the prevailing international order is important in itself — and marks a failure of US leadership,” business and finance news outlet Bloomberg wrote last year. The combined GDP of the BRICS countries has already overtaken that of the G7, and will grow further, Putin predicted. BRICS, which previously comprised Brazil, Russia, India, China and South Africa, grew in size this January with the inclusion of Saudi Arabia, Iran, Ethiopia, Egypt and the United Arab Emirates. In the past year, the members of the grouping have moved away from using the dollar and euro in internal settlements, instead shifting towards the use of national currencies. Western sanctions related to the Russia-Ukraine conflict have forced Moscow to move away from Western currencies and the SWIFT system and to further develop its own MIR system of payments.

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As telegraphed weeks ago…

• Ukraine Sends Fired Top General Zaluzhny To London (RT)

Former Ukrainian commander-in-chief Valery Zaluzhny has been appointed the country’s new ambassador to the UK, the Foreign Ministry announced on Thursday. The ministry said it has already informed London about the development, formally requesting approval from it. “The President of Ukraine approved the candidacy of Valery Zaluzhny for the post of Ambassador extraordinary and plenipotentiary of Ukraine to the United Kingdom,” the ministry said in a short statement. Zelensky himself further elaborated on the matter in a video address, insisting the appointment would only benefit relations between Kiev and London and that their ties “should only get stronger.” “Zaluzhny told me that this is the direction he would like to take – diplomacy,” the president claimed. Zaluzhny ended up being fired by Zelensky from his post as the country’s top general last month, with the Ukrainian president citing the need to bring “new approaches” and “new strategies” to the conflict with Russia.

The commander was replaced by General Aleksandr Syrsky, the head of the Ukrainian Ground Forces at the time. The pick has been widely seen as an unpopular one amongst the military, largely thanks to the questionable reputation of Syrsky, said to be nicknamed “The Butcher” over the commanding style he showed while leading the troops during both the defense of Artyomovsk (known in Ukraine as Bakhmut) and the subsequent attempt to retake the city as part of the 2023 summer offensive. Both battles have resulted in decisive defeats for Kiev, coupled with massive casualties among the troops. The firing of Zaluzhny came after a conflict between the commander-in-chief and Zelensky that had been rumored for months. The two had been reportedly disagreeing over military priorities, while Zelensky had also allegedly grown wary of the popular general, regarding him as a potential political opponent.

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The logic: Ukraine will pay it all back. “Cameron excuses his proposal on the basis that Ukraine will win the war against Russia, and that Moscow will have to pay reparations to Kiev..”

• Cameron Wants to Steal Russian Assets as ‘Surety’ to Bail Out Ukraine (Sp.)

Some $300 billion in Russian assets were trapped abroad in 2022 following the escalation of the US proxy war in Ukraine. Under pressure from Kiev, there have been continued attempts by the West to seize those assets and give them to Ukraine. Britain is prepared to loan Ukraine all frozen Russian central bank assets in the United Kingdom on the belief that it will pay those loans back with Russian “reparations” following the end of the war, says UK foreign secretary David Cameron. Western countries have previously pledged a total of several billion dollars toward rebuilding Ukraine, including investment pledges from dozens of major multinational corporations. And in late January, Belgium announced it would allocate €611 million ($663 million) to help Kiev in 2024 using the profits they received from the frozen Russian assets.

But Cameron’s announcement this week is the most extreme proposal thus far, as the previous proposals only discussed giving Ukraine the “windfall profits” from the frozen assets which are estimated to be about $4 billion. “There is an opportunity to use something like a syndicated loan or a bond that effectively uses the frozen Russian assets as a surety to give that money to the Ukrainians knowing that we will recoup it when reparations are paid by Russia. That may be a better way of doing it. We are aiming for the maximum amount of G7 and EU unity on this but if we cannot get it I think we will have to move ahead with allies that want to take this action,” said Cameron on Tuesday, most likely referring to the United States. US Treasury Secretary Janet Yellen has also proposed finding a “way to unlock” the assets to support Ukraine. “I believe there is a strong international law, economic and moral case for moving forward. This would be a decisive response to Russia’s unprecedented threat to global stability,” Yellen said at a meeting of G20 finance ministers last month.

The G7 itself has questioned whether seizing the assets could undermine faith in the international financial system. And Belgium, which is believed to control as much as €190 billion ($208 billion) of the assets, is the most resistant to follow Cameron’s plan. It is reportedly facing a series of court cases in Russia, and its stance on the issue has the backing of both France and Germany. Cameron excuses his proposal on the basis that Ukraine will win the war against Russia, and that Moscow will have to pay reparations to Kiev. But the idea that Ukraine could win a military victory against Russia is unimaginable. More and more Western media outlets have been acknowledging Russia’s success on the battlefield. Moscow has maintained that any attempt to confiscate its frozen assets would violate international law, with the Russian Foreign Ministry labeling such an action as theft.

“Those who are trying to initiate this, and those who will implement it, must understand that Russia will never leave those who did this alone. And it will constantly exercise its right to a legal battle, internationally, nationally or otherwise. And this, of course, will have — both Europeans and Americans understand this very well — it will have legal consequences for those who initiated and implemented it,” Kremlin spokesman Dmitry Peskov said in December. Russian Finance Minister Anton Siluanov has also said that Moscow is willing to issue a “symmetrical” response to this form of Western financial aggression. “We have no fewer frozen [assets than Western countries],” Siluanov said in an interview with Sputnik last month. “Any actions taken against our assets would receive a symmetrical response.

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Did they bother to ask the people?

• What Repercussions Could Reintroduction of Conscription in Germany Bring? (Sp.)

German Defense Minister Boris Pistorius plans to speed up the process of reintroducing compulsory military service in his country, the Spiegel magazine has reported. He gave the Defense Ministry until April 1 to present options for a German military service model that makes a major contribution to “national resilience.” The move is “a clear sign of the rearmament taking place in Europe,” Mikael Valtersson, a former officer of Swedish Armed Forces/Air Defense, former defense politician and chief of staff with the Sweden Democrats, said in an interview with Sputnik. Such a process “might result in a new arms race and increased confrontations in Europe,” Valtersson warned. In an apparent nod to Germany, he said that “With conscription, the entire society becomes much more militarized, since a large part of the population have military experience.”

The ex-defense politician recalled that, “The resistance against conscription [in Germany] has decreased during the last years, partly as a result of the conflict in Ukraine and the following heightened tension between the West and Russia.” “But also to a large degree due to an intense campaign from Western media and politicians trying to scare the population with the threat from Russia. A large part of the population still remains skeptical of conscription,” Valtersson added. At the same time, he argued that, “With a bigger military, Germany will of course get a larger influence in European security and politics.” According to the former Swedish officer, “German capacity to replace the US as the main conventional defender in Europe will also increase with a military partially based on conscription.”

Touching upon Russian-German ties, he said that “conscription in itself” would not affect them, “but in combination with general rearmament and a very militaristic language from German media and politicians it will worsen relations.” He was echoed by Stefan Keuter, a German politician for the Alternative for Germany party and a member of the Bundestag since 2017, who told Sputnik that the country “has already a regular army, the Bundeswehr”, which is “integrated into the Western defense alliance.” If strengthened, the European “axis of the alliance” could reduce dependence on the Americans, Keuter noted. It remains unclear “how things will develop in Washington and a high level of defense preparedness cannot be a disadvantage,” he added, apparently referring to former US President Donald Trump’s previous remarks about his unwillingness to defend NATO countries that don’t meet spending guidelines.

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“..in sharp contrast to the artificial, cancel culture-obsessed “open society” P.R. incessantly sold by the usual hegemonic foundations..”

• Global South Youth Flocks to ‘Isolated’ Russia (Pepe Escobar)

By any metric, the World Youth Festival running in the Sirius federal territory (Sochi, southern Russia) on March 1-7 is a stunning achievement: a sort of Special Cultural Operation (SCO) encompassing the young Global South. It starts with the incomparable setting – the 2014 Olympics park of science and art, nested between snowy mountains and the Black Sea – all the way to the stars of the show: over 20,000 young leaders from over 180 nations, Russians and mostly Asians, Africans and Latin Americans, as well as assorted dissidents from the sanctions-obsessed Western “garden”. Among them are scores of educators, PhDs, public sector or culture activists, charity volunteers, athletes, young entrepreneurs, scientists, citizen journalists, as well as teenagers from 14 to 17, for the first time the focus of a special program, “Together into the Future”. These are the generations that will be building our common future.

President Putin is once again quite sharp: he emphasized how a clear distinction applies between citizens of the world – including the Global North – and the intolerant, extremely aggressive Western plutocracy. Russia, a multinational, multicultural civilization-state, by principle welcomes all citizens of the world. The World Youth Festival 2024, taking place seven years after the last one, renews a tradition that harks back to the 1957 World Festival of Youth and Students when the USSR welcomed everyone on both sides of the Iron Curtain during the Cold War. The idea of an open platform for young, committed, very organized people attracted by Russian conservative/family values permeates the whole festival – in sharp contrast to the artificial, cancel culture-obsessed “open society” P.R. incessantly sold by the usual hegemonic foundations.

Each day at the festival is dedicated to a main theme. For instance, March 2 was on “responsibility for the fate of the world”; March 3 was for “unity and cooperation among nations”; March 4 was for “a world of opportunities for everyone”. No less than 300,000 youngsters from around the world applied to come to the festival. So obviously to select a little over 20,000 was quite a feat. After the festival, 2,000 foreign participants will travel to 30 Russian cities for cultural exchange. Exactly what comrade Xi Jinping defines as “people to people’s exchanges” It’s no wonder the festival organizers, Rosmolodezh, the Russian federal agency for youth affairs, call it “the largest youth event in the world”. Director Ksenia Razuvaeva noted, “we are destroying the myth that Russia is isolated.”

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“The threat was so great that Trump had to be moved into the bunker because the Secret Service feared a breach of security around the White House..”

• NYT Faces Claims of Hypocrisy Over Coverage of the Deployment of Troops (Turley)

Sen. Tom Cotton, R-Ark., has a right to be a tad confused. The senator noted the matter-of-fact coverage by The New York Times that Democratic New York Gov. Kathy Hochul’s plans to send troops to New York City to crack down on crime. Cotton posted a “hmmm” note that simply read: “Sending in the troops to help restore law and order…” His point was that it was roughly four year ago, that the newspaper publicly denounced him after running his opinion piece calling for the use of national guard troops to quell violent riots in Washington. The Cotton column led to editors being forced out after public confessions and recriminations. Now, after Democratic politicians actually ordered such a deployment, the Times has offered little more than a journalistic shrug. Hochul announced she will be deploying 750 members of the National Guard to New York City’s subway system to assist the New York Police Department (NYPD) in the crackdown on crime, including bag searches at the entrances of busy train stations.

I have previously written on the hypocrisy of the Times in how it has handled the Cotton affair. The column itself was historically accurate. Indeed, critics never explained what was historically false (or outside the range of permissible interpretation) in the column. Moreover, writers Taylor Lorenz, Caity Weaver, Sheera Frankel, Jacey Fortin, and others said that such columns put black reporters in danger and condemned publishing Cotton’s viewpoint. In a breathtaking surrender, the newspaper apologized and not only promised an investigation in how such an opposing view could find itself on its pages but promised to reduce the number of editorials in the future: “We’ve examined the piece and the process leading up to its publication. This review made clear that a rushed editorial process led to the publication of an Op-Ed that did not meet our standards. As a result, we’re planning to examine both short term and long term changes, to include expanding our fact-checking operation and reduction the number of op-eds we publish.”

The sacking of Bennet had its intended effect. Writers and columnists with opposing or critical views were soon forced off newspapers around the country, including at the New York Times. Editor Adam Rubenstein was also forced out at the paper and recently wrote a scathing account of the bizarre environment within the paper. The writers have condemned the “both sideism” of allowing conservative viewpoints in the newspaper and insisted that Cotton and others must be banned as favoring potential violent actions against protesters. Yet, the newspaper has published people with anti-free speech and violent viewpoints in the last year. While the New York Times stands by its declaration that Cotton should never have been published, it had no problem in publishing “Beijing’s enforcer” in Hong Kong as Regina Ip mocked freedom protesters who were being beaten and arrested by the government.

Indeed, just before the anniversary of the Cotton controversy, the New York Times published a column by University of Rhode Island professor Erik Loomis, who defended the murder of a conservative protester and said that he saw “nothing wrong” with such acts of violence. Loomis’ article on “Why The Amazon Workers Never Stood A Chance” did not include his earlier violent rationalization. It was in my view a worthy and interesting column for publication. So was Cotton’s column. While many today still claim that the protests around the White House were “entirely peaceful” and there was no “attack on the White House,” that claim is demonstrably false. As I discussed in my testimony to Congress, there was in fact an exceptionally high number of officers were injured over the course of days of protests around the White House. In addition to a reported 150 officers were injured (including at least 49 Park Police officers around the White House), protesters caused extensive property damage including the torching of a historic structure and the attempted arson of St. John’s.

The threat was so great that Trump had to be moved into the bunker because the Secret Service feared a breach of security around the White House. Notably, later during the January 6th riot, there were no recriminations for the use of the same fencing and national guard troops to protect the Capitol, albeit too late to have prevented the initial riot. So now it is a Democratic leader who is not just calling for the use of troops but deploying them in New York City. It is part of an effort by many Democrats to change course on crime and immigration before the 2024 election after years of criminal law reforms and sanctuary city policies.

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“According to a 2022 memo issued by Attorney General Merrick Garland, law enforcement officers and prosecutors are prohibited from taking actions that could impact elections.”

• Rep. Gaetz Accuses Jack Smith of Election Interference (ET)

Rep. Matt Gaetz (R-Fla.) accused Special Counsel Jack Smith of election interference in a complaint filed with the Department of Justice’s (DOJ) inspector general on Wednesday. In a letter to Inspector General Michael Horowitz, Mr. Gaetz asserted that Mr. Smith’s resistance to delaying a trial stems from an unspoken drive to hold it before the upcoming November presidential election. Last week, former President Donald Trump’s lawyers and Mr. Smith’s office filed motions requesting different trial dates in the classified documents criminal case in Florida. President Trump’s lawyers have argued that a fair trial cannot be held in an election year when he is the leading Republican candidate. “The witch hunt against President Trump by Attorney General Garland and Special Counsel Smith is a partisan exercise, and the American people know it!” Mr. Gaetz wrote on X (formerly Twitter).

“Jack Smith’s attempt to speed up the trial against President Trump violates the DOJ’s rules and the law,” he continued. “His public comments and his office’s briefs before the Supreme Court demonstrate that he has no reason for his actions other than to unlawfully interfere in the 2024 presidential election.” In his letter, Mr. Gaetz pointed to statements by Mr. Smith in court filings where he has urged a “rapid” review of the case and stressed its “public importance.” This, according to the Florida congressman, shows that the case is an attempt at election interference. “Were there a legitimate, non-election related purpose for this request, these attorneys, who have filed in appeals courts many times, would have listed such,” Mr. Gaetz wrote. “Since charges have been filed and the defendant himself is taking a legal position on timing and lodging various appeals, that justification cannot, for example, be the rights of the defendant under the Constitution or Speedy Trial Act,” he continued.

President Trump’s legal team made a similar argument last month, writing in a court filing that Mr. Smith was twisting “into logical knots” in his argument against delaying the trial. “The Special Counsel’s latest filing raises a compelling inference of a political motive—the motivation to influence the 2024 Presidential election by bringing the leading Republican candidate to trial before November 5, 2024,” President Trump’s lawyers wrote. Mr. Gaetz argued in Wednesday’s letter that Mr. Smith’s apparent rush to trial raises questions about compliance with DOJ policy. According to a 2022 memo issued by Attorney General Merrick Garland, law enforcement officers and prosecutors are prohibited from taking actions that could impact elections.

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“The American people deserve justice for the infringement on their personal medical freedom and those medically harmed deserve restitution..”

• Bill Would Strip COVID-19 Vaccine Manufacturers of Liability Protection (ET)

Proposed legislation introduced on March 5 would strip COVID-19 vaccine manufacturers of liability protections, enabling U.S. residents injured by the vaccines to sue the companies. The bill, proposed by Rep. Chip Roy (R-Texas), would retroactively remove protections from the Public Readiness and Emergency Preparedness Act (PREP Act) for COVID-19 vaccine manufacturers. “No federal law … may make the manufacturer of a COVID-19 vaccine immune from suit or liability, or limit the liability of such a manufacturer, with respect to claims for loss caused by, arising out of, relating to, or resulting from the administration to or the use by an individual of a COVID-19 vaccine,” the bill reads. The PREP Act currently protects manufacturers and people who administer the vaccines from liability, under a 2020 declaration entered by then-Health Secretary Alex Azar during former President Donald Trump’s administration. President Joe Biden’s administration has since extended the declaration.

The only exception to the PREP Act protection is in cases of death or serious injury caused by “willful misconduct.” The protection even covers people who “reasonably could have believed” they were protected even if, in actuality, they were not, according to an opinion from the Department of Health and Human Services (HHS). “Millions of Americans were forced to take a COVID-19 shot out of fear of losing their livelihoods and under false pretenses. Many have faced injury from the vaccine, but few have been afforded little recourse,” Mr. Roy said in a statement. He said he was introducing the new bill “to empower Americans to remove crony federal liability protections for COVID-19 vaccine manufacturers and empower injured Americans.” “The American people deserve justice for the infringement on their personal medical freedom and those medically harmed deserve restitution,” Mr. Roy said.

As part of the federal vaccine system, people who have suspected or confirmed injuries from COVID-19 vaccines can apply for compensation from the government under a program called the Countermeasures Injury Compensation Program. But as of January, just 11 people have been compensated, with the highest payout being just $8,961. The overwhelming majority of claims that have been processed have been rejected, according to HHS, which both runs and administers the program. Some of the denials involved people whose doctors diagnosed them with vaccine injuries. A lawsuit has challenged the constitutionality of the program, describing it as a “kangaroo court.” The proposed legislation makes clear that it does not affect the ability of people to apply for recompense through the compensation program.

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Catfish

 

 

 

 

Kugel

 

 

First house

 

 

 

 

Support the Automatic Earth in wartime with Paypal, Bitcoin and Patreon.

 

 

 

 

 

Debt Rattle March 2 2022

Mar 022022
 
 March 2, 2022  Posted by at 9:47 am Finance Tagged with: , , , , , , , ,  62 Responses »


Salvador Dali They were there 1931

 

• Open Letter To TV Watching Western Armchair Generals (Saker)
• Fog of War (Wolfgang Streeck)
• How Russia Will Bypass Western Economic Warfare (Escobar)
• Russia To Be In Technical Default Within Hours (ZH)
• The Americans Itching For War (Techno Fog)
• Why Wouldn’t the US Negotiate With Putin? (Tracey)
• US Sees ‘No Reasons’ to Change Nuclear Alert Level (ZH)
• One In Thirty (Denninger)
• New Zealand Data Shows Fully Vaccinated Developing VAIDS (DE)
• Pfizer’s COVID-19 Vaccine Enters Liver Cells and Is Converted to DNA (ET)
• So About Not Needing Actual Study… (Denninger)

 

 

 

 

“a wall high enough to keep out a vaccine”

 

 

Urainian people?
https://twitter.com/i/status/1498880750116032515

 

 

But yeah, Putin’s the one who’s crazy.

 

 

Putin

 

 

“..the Ukie military was 80% defeated on Day 1 [..] THAT is why they are blowing up bridges, distributing weapons and releasing convicted criminals. NOT because they are winning!”

• Open Letter To TV Watching Western Armchair Generals (Saker)

My dear TV western armchair generals, I get it, I promise. I really do! Your entire life you have been trained to see a successful military operations like so: Begin by bombing the shit of the “hadjis” or “sand niggers” with bombs and missiles, then flatten their town à la Fallujah, then move in with heavy armor and shoot everything which still moves or breathes. Then distribute chewing-gums to a few kids while on video. Then take the city center, drop a statue in front your embedded presstitutes, and then declare victory. Then, after declaring victory, stay another 20 years or so (Blinken was clearly projecting!), ruin it completely, then leave it again and declare another brilliant victory. And don’t forget to declare urbi at orbi that you reserve the “right” to bomb the shit out of them anytime you deem it is needed.

And fuck their sovereignty or anybody else’s while we are at it! Lastly, once home, don’t forget to “thank” your “veterans” for their “service”. I get it. Now YOU try, please!! Now, in spite of this conditioning, please at least try to understand the following points: First, the Russians do not see Ukrainian as Hadjis but as their own brothers. Second many/most LDNR soliders have relatives in the Nazi occupied Ukraine. Third, yes, Russia can turn any Ukrainian city into Fallujah, but who do you think will then have to pay for its reconstruction? Fourth, please understand that the double goals of 1) denazification and 2) disarmament implies that any person which is not a Nazi or is not armed and hostile is not, repeat, NOT the target of the Russian armed forces.

Fifth, the Ukie military was 80% defeated on Day 1. Get that? It was gone as a coherent fighting force. THAT is why they are blowing up bridges, distributing weapons and releasing convicted criminals. NOT because they are winning! I mean – how stupid are you if you believe that? Ukie stupid? Seriously? Right now you are the object of probably the biggest PSYOP operation in history. If you realize that and treat these PSYOPs as you should, that is as “informational warfare from the bad guys” you will be able to tell your kind and grandkids “I never believed that crap”. Good for you!

Kharkiv rocket

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Europe still is but a province of the US.

• Fog of War (Wolfgang Streeck)

Only a Europe at peace with Russia, one that respects Russian security needs, could hope to free itself from the American embrace, so effectively renewed during the Ukrainian crisis. This, one presumes, is the reason why Macron insisted for so long on Russia being a part of Europe, and on the need for ‘Europe’, as represented of course by himself and France, to provide peace on its Eastern flank. Russia’s invasion of Ukraine has for a long time, if not forever, put an end to this project. But then, it was never very promising to begin with, given Germany’s felt dependence on American nuclear protection, combined with German doubts about all-too-fanciful French global ambitions, re-defined as European ambitions to be funded by German economic power. And Russia may with some justification have questioned if, under these conditions, France would be able to push the US out of the European drivers’ seat.

So the winner is… the United States? The longer the war drags on, due to the successful resistance of Ukrainian citizens and their army, the more it will be noticed that the leader of ‘the West’, who spoke for ‘Europe’ as the war built up, is not intervening militarily on behalf of Ukraine. The US has given itself a special leave of absence, as Biden made clear from the start. Looking at its record, this is nothing new: when their mission gets unmanageable, they withdraw to their distant island. Nevertheless, as Germans look on, wondering where the US is, they may start to feel some doubt about the American commitment to come to their nuclear defence. That commitment, after all, underlies German membership in NATO, German adherence to the nuclear nonproliferation treaty, and the housing of 30,000 or so American troops on German soil.

In this context the special budget of €100 billion, announced a few days into the war by the Scholz government and devoted to fulfilling the promise, going back to 2001, to spend 2 percent of Germany’s GDP on arms, looks like a ritual sacrifice to appease an angry God who one fears might abandon his less-than-true believers. Nobody thinks that had Germany actually lived up to the 2 percent NATO demand, Russia would have been deterred from invading Ukraine, or that Germany would have been able and willing to come to its aid. In any case it will take years for the new hardware, of course the latest on offer, to be made available to the troops. It will also be hardware of exactly the sort that the US, France and the UK already have in abundance.

Moreover, the entire German military is under the command of NATO, meaning the Pentagon, so the new arms will add to NATO’s, not Germany’s firepower. Technologically, they will be designed for deployment around the globe, on ‘missions’ like Afghanistan – or, most likely, in the environs of China, to assist the US in its emerging confrontation in the South China Sea. There was no debate at all in the Bundestag on exactly what new ‘capabilities’ would be needed, or what they will be used for. As in the past, under Merkel, this was left to ‘the allies’ to determine. One item could be the Future Combat Air System (FCAS), beloved by the French, which combines fighter bombers, drones and satellites for worldwide operations. There is scant hope that there will at some point be a strategic debate in Germany on what it means to defend your own territory, rather than attack the territory of others. Can the Ukrainian experience help start this discussion? Unlikely.

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“Those with IQs over 50 in the European Union (EU) must have understood that Russia simply could not be totally excluded from SWIFT, but maybe only a few of its banks..”

• How Russia Will Bypass Western Economic Warfare (Escobar)

So a congregation of NATO’s top brass ensconced in their echo chambers target the Russian Central Bank with sanctions and expect what? Cookies? What they got instead was Russia’s deterrence forces bumped up to “a special regime of duty” – which means the Northern and Pacific fleets, the Long-Range Aviation Command, strategic bombers and the entire Russian nuclear apparatus on maximum alert. One Pentagon general very quickly did the basic math on that, and mere minutes later, a Ukrainian delegation was dispatched to conduct negotiations with Russia in an undisclosed location in Gomel, Belarus.

Meanwhile, in the vassal realms, the German government was busy “setting limits to warmongers like Putin” – quite a rich undertaking considering that Berlin never set any such limits for western warmongers who bombed Yugoslavia, invaded Iraq, or destroyed Libya in complete violation of international law. While openly proclaiming their desire to “stop the development of Russian industry,” damage its economy, and “ruin Russia” – echoing American edicts on Iraq, Iran, Syria, Libya, Cuba, Venezuela and others in the Global South – the Germans could not possibly recognize a new categorical imperative. They were finally liberated from their WWII culpability complex by none other than Russian President Vladimir Putin. Germany is finally free to support and weaponize neo-Nazis out in the open all over again – now of the Ukrainian Azov battalion variety.

[..] So the US itself, in another massive strategic blunder, will speed up de-dollarization. As the managing director of Bocom International Hong Hao told the Global Times, with energy trade between Europe and Russia de-dollarized, “that will be the beginning of the disintegration of dollar hegemony.” It’s a refrain the US administration was quietly hearing last week from some of its own largest multinational banks, including notables like JPMorgan and Citigroup. A Bloomberg article sums up their collective fears: “Booting Russia from the critical global system – which handles 42 million messages a day and serves as a lifeline to some of the world’s biggest financial institutions – could backfire, sending inflation higher, pushing Russia closer to China, and shielding financial transactions from scrutiny by the west. It might also encourage the development of a SWIFT alternative that could eventually damage the supremacy of the US dollar.”

Those with IQs over 50 in the European Union (EU) must have understood that Russia simply could not be totally excluded from SWIFT, but maybe only a few of its banks: after all, European traders depend on Russian energy. From Moscow’s point of view, that’s a minor issue. A number of Russian banks are already connected to China’s CIPS system. For instance, if someone wants to buy Russian oil and gas with CIPS, payment must be in the Chinese yuan currency. CIPS is independent of SWIFT.

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“We also see strong likelihood of technical default on Eurobonds at the sovereign level.”

• Russia To Be In Technical Default Within Hours (ZH)

More than two decades ago, on August 17, 1998, Russia defaulted on its debt and devalued the ruble, sparking a political crisis that culminated with Vladimir Putin replacing Boris Yeltsin and which also eventually resulted in the spectacular implosion of a then little known hedge fund called Long Term Capital Management (which was staffed to the gills with “brilliant” Nobel prize winners) which after receiving a Fed-led Wall Street bailout, ushered in the era of too big to fail. We bring this up because in just a few hours, Russia will be in another technical default. Amid the flurry of capital controls imposed by Moscow today, the Russian central bank banned coupon payments to foreign owners of ruble bonds known as OFZs in what it said was a temporary step to shore up markets in the wake of international sanctions.

What it really is, is a technical default on upcoming interest and maturity payments, with a trigger due as soon as tomorrow. The Bank of Russia issued the instruction to depositaries and registries as part of a raft of measures announced this week that included a freeze on local security sales by foreigners. It could leave foreign investors who held almost 3 trillion rubles ($29 billion) in the debt at the start of February unable to collect income on their holdings, which are already blocked from sale by restrictions. “Issuers have the right to make decisions on the payment of dividends and the making of other payments on securities and transfer them to the accounting system,” the central bank said in an emailed reply to questions. “However, the payments themselves will not be made by depositories and registrars to foreign clients. This also applies to OFZ.”

The decision by the central bank was taken to “avoid mass sales of Russian securities, the withdrawal of funds from the Russian financial market and to support financial stability,” it said. With as much as half of its foreign reserves frozen abroad by sanctions aimed at punishing the Kremlin for invading Ukraine, the Bank of Russia said Monday it would harden capital controls with a ban on transferring foreign currency abroad. While initially it clarified that the step wasn’t aimed at stopping the servicing of debt, some investors and economists said the phrasing of the decree could amount to a default.

“Game over? I think they underestimated how far sanctions will go and now don’t have much left to do,” Viktor Szabo, a fund manager at Aberdeen Asset Management in London told Bloomberg. “All Russian markets have fallen apart.” “This will likely be a technical default, we’ll see how long it goes on for,” said Nick Eisinger, co-head of emerging-markets active fixed income at Vanguard Asset Management in London. “We also see strong likelihood of technical default on Eurobonds at the sovereign level.”

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“Putin the Madman is the new talking point, the elite opinion that is approved for the masses.”

• The Americans Itching For War (Techno Fog)

Former Secretary of State Condoleezza Rice calls Putin’s behavior “erratic,” his views “delusional.” James Clapper says Putin is “unhinged.” Clapper suggests the possibility that Putin will use tactical nuclear weapons in Ukraine. Fiona Hill, the Regime’s favorite “Russia expert,” believes “Putin is increasingly operating emotionally and likely to use all the weapons at his disposal, including nuclear ones.” There’s a couple goals in questioning Putin’s state of mind. First, it serves to defend America from criticisms that potential NATO expansion and continued American meddling in Ukraine helped spark this conflict. (“Blame the crazy man, not us.”) Second, it justifies the escalation of the West’s involvement in the war between Ukraine and Russia.

Talks about the potential for the use of nuclear weapons – “the crazy man in has nukes!” – only make intervention more compelling (though that doesn’t guarantee Biden would take the bait). Already U.S. Senators are calling for a no-fly zone over Ukraine. Escalation leads to dangerous questions and unknown answers, such as what happens when the U.S. and Russia are in direct conflict. Missing from the media’s coverage is push-back on these statements about Putin’s state of mind or the potential use of nuclear weapons. Their skepticism isn’t missing – it’s dead. Putin the Madman is the new talking point, the elite opinion that is approved for the masses. There’s little basis for their new talking point – certainly not in Putin’s February 24, 2022 speech where he calmly outlines Russia’s grievances and concerns, and their plans for Ukraine.

In fact, while Fiona Hill questions Putin’s mental state, she admits they assessed years ago that there was “a real, genuine risk of preemptive Russian military action” against Ukraine in response to NATO’s Open Door promise to welcome any European democracy (including Ukraine). Such predictions don’t square with craziness. Hill and Clapper’s inflammatory statements about the potential for Russia to use nuclear weapons makes zero sense in context of the conflict in Ukraine and Putin’s demands. Putin is winning the war. At the time I’m writing this, Russia is surrounding major Ukrainian cities and the Russian convoy headed to Kyiv is estimated to be 40 miles long.


When people flee east, they are not refugees, they’re migrants. And the NYT makes them hard to find too…

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“So of course it was to the US that Russia’s demands for written “security guarantees” were officially submitted last December — not to China, or the EU, or Botswana, or anyone else.”

• Why Wouldn’t the US Negotiate With Putin? (Tracey)

It’s of course possible that Vladimir Putin was always hell-bent on invading Ukraine, that his decision was taken months if not years ago, and that no diplomatic intervention would have made any difference. Yes, that is possible. But it is also the case that the only country capable of making any difference in addressing the “security” concerns Putin claimed were driving his behavior — and thus, the only relevant diplomatic player in the situation — was the US. Many have pointed out that China’s tacit support for the invasion makes them a relevant diplomatic player, and that’s certainly feasible. But in terms of the core grievances that Putin repeatedly identified as his motives for this invasion — Ukraine’s potential accession into NATO, the already-existing moves to facilitate “interoperability” between the Ukraine military and the US/NATO, and the conversion of Ukraine since 2014 into a de facto US military outpost — the only relevant diplomatic player was the US.

For the chorus of people who will fulminate for the rest of their lives that any consideration of US culpability in this fiasco is somehow an “apology” for Putin, or a denial of his agency, or any other assorted nonsense: feel free to live in your black-and-white moral universe where tales of Good versus Evil always result in the princess being rescued by the knight, or whichever other comforting myths you need to tell yourself. The US deliberately chose — across administrations of both parties — to subsidize and “train” Ukraine’s military, flood the country with weapons, and otherwise assume the role of primary foreign sponsor. That’s the indisputable reality. Last week, Putin called Ukraine a “colony” or “puppet” of the US. Why do you think everyone from Hunter Biden to Rudy Giuliani correctly ascertained that they could secure huge sums of money from shady Ukrainian financial interests for doing next to nothing, other than having prominent political connections in the US?

So of course it was to the US that Russia’s demands for written “security guarantees” were officially submitted last December — not to China, or the EU, or Botswana, or anyone else. They were submitted to the US. Hence the clear-as-day centrality of the US in the progression of this conflict — a fact which now gets bizarrely denied on the regular by political-blackmailers who scream that there is absolutely no acceptable response to this invasion other than to condemn Putin about 15 billion times (even if you’ve already done so, emphatically). There is a certain point when these endless calls for condemnation function as nothing more than a coercive disciplinary tactic to preclude any further debate, and that point has arrived.

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Liz Truss. Where did she come from? Must be Schwab.

• US Sees ‘No Reasons’ to Change Nuclear Alert Level (ZH)

The White House said Monday that the US sees “no reasons” to change its nuclear alert levels after Russian President Vladimir Putin placed Russia’s nuclear forces on a “special” alert. According to Interfax, Russia’s Defense Ministry said Monday that its nuclear missile forces in its Northern and Pacific fleets have been placed on “enhanced combat duty” in response to Putin’s order. “We are assessing President Putin’s directive and at this time, we see no reasons to change our own alert levels,” White House Press Secretary Jen Psaki told reporters. Later in the day, President Biden was asked if Americans should worry about nuclear war, to which he simply replied, “no.” Psaki claimed that the US and NATO had no “appetite or desire” for a conflict with Russia even as the Western powers are pledging to funnel more weapons into Ukraine and have imposed a series of harsh sanctions on Russia.


According to BBC, the Kremlin later explained its change in nuclear forces posture was due to comments made by UK Foreign Secretary Liz Truss: Kremlin spokesman Dmitry Peskov said “unacceptable” remarks were made about possible “clashes” between Nato and Moscow over Russia’s attack on Ukraine. It is unclear precisely which comments by Ms Truss Russia objects to. On Sunday, she said if Russia was not stopped, other states may be threatened and it could end in conflict with Nato. A Foreign, Commonwealth and Development Office source told the BBC: “I don’t think anything Liz has said warrants that sort of rhetoric or escalation.” Peskov said Monday: “Statements were made by various representatives at various levels on possible altercations or even collisions and clashes between Nato and Russia.” “We believe that such statements are absolutely unacceptable. I would not call the authors of these statements by name, although it was the British foreign minister.”

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Increasingly starting to look like Russia roulette.

• One In Thirty (Denninger)

That’s my latest “best guess” when it comes to people who took the jabs for permanent and material impairment of their health. One in thirty. Incidentally that might be conservative; I would not be surprised if its worse than that. My estimates in this regard keep going the “wrong” way; what was a couple months ago one in a couple hundred is now close to ten times worse than that. This is yet another data set, this time from Israel and Pfizer which was intentionally suppressed and is still being intentionally suppressed. 1 in 30 is about 3% of all recipients. There will be a skew but exactly where it lands is not yet known. There is a furious attempt at present to deflect the most-obvious and outrageous examples of harm, specifically cardiac damage in young men, with the claim that “its transitory.”

That’s flat-out BS; heart damage is nearly always both cumulative and permanent. What’s also in the data and extremely serious is this: Additionally, roughly 24% of people with pre-existing autoimmune disorders, and 5%-10% of those with diabetes, hypertension, and lung and heart disease, also reported a worsening of their condition. That’s not 1 in 30 — its anywhere from one in 20 to one in FOUR! These are not transient problems folks; they’re disability-enhancing or even disability-causing health problems. Nor is the one in ten women under 54 reporting menstrual changes. This is not normal and again is wildly greater than one in thirty. I warned people before the mass jab-fest kicked off that there were very concerning issues with doing this in the first place and as time went on the data got worse rather than better.

There are always unknowns when you do something new and this was clearly new, but in addition as with Run-Death-Is-Near the history of this particular path (vector-based jabs, whether viral or mRNA) is one of serious problems and, in the context of mRNA, failures. Typically as time goes on you qualify some of the concerns and they drop off. That didn’t happen this time; instead what occurred is that the concerns got much worse. As soon as that started to show up in the data, which was evident by last March, the entire program should have been immediately scrapped until the issues were run to the ground and fully understood, bounded and qualified with the public choosing based on truthful and clearly-communicated information.

This was not only not done it was deliberately concealed with “Big Tech”, so-called “public health” and political organizations all lying through their teeth while refusing to examine or even publish truthful data sets.


New Zealand: 3% fatality rate for Pfizer vaccine

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Daily Exposé tries to cram too much info per article.

• New Zealand Data Shows Fully Vaccinated Developing VAIDS (DE)

The problem we’re seeing here is that the immune system isn’t returning to its original and natural state. If it was then the outcomes of infection with Covid-19 would be similar to the outcomes among the not-vaccinated/one dose vaccinated population. Instead, it continues to decline at a rate that means the not-vaccinated population have a better performing immune system, so this means the Covid-19 injections are decimating the immune systems of the fully vaccinated. But to work out immune system performance we have to alter the calculation used to work out vaccine effectiveness slightly and divide our answer by either the largest of the vaccinated or unvaccinated case rate.


Unvaccinated case rate – Vaccinated case rate / largest of the unvaccinated / vaccinated case rate = Immune System Performance The following chart shows the real-world immune system performance of the fully vaccinated population in New Zealand between 6th Jan and 11th Feb, and between 12th Feb and 24th Feb 22 compared to the immune system performance of the unvaccinated population –

Between 6th Jan and 11th Feb, the immune system performance of the fully vaccinated equated to -49%, meaning they were down to the last 51% of their immune system. But fast forward to 24th Feb, and we find that the immune system performance of the fully vaccinated in New Zealand has fallen to -74%, meaning the fully vaccinated populations immune systems have degraded by a further 25% in just 13 days, and they are now down to the last 26% of their immune system. If the fully vaccinated population continues to degrade at the same rate, then they could have developed full blow AIDS by the middle of March 2022. AIDS (acquired immune deficiency syndrome) is the name used to describe a number of potentially life-threatening infections and illnesses that happen when your immune system has been severely damaged.


Unfortunately, the New Zealand Ministry of Health data shows that the fully vaccinated population are now just weeks away from developing Acquired Immune Deficiency Syndrome, (AIDS) or a novel condition with similar attributes that can only be described as Covid-19 Vaccine Induced Acquired Immune Deficiency Syndrome (VAIDS), and the repurcussions of this are already being seen in the official Covid-19 hospitalisation statistics for New Zealand –

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New Pfizer data dump: 9 pages of adverse reactions.

• Pfizer’s COVID-19 Vaccine Enters Liver Cells and Is Converted to DNA (ET)

The messenger RNA (mRNA) from Pfizer’s COVID-19 vaccine is able to enter human liver cells and is converted into DNA, according to Swedish researchers at Lund University. The researchers found that when the mRNA vaccine enters the human liver cells, it triggers the cell’s DNA, which is inside the nucleus, to increase the production of the LINE-1 gene expression to make mRNA. The mRNA then leaves the nucleus and enters the cell’s cytoplasm where it translates into LINE-1 protein. A segment of the protein called the open reading frame-1, or ORF-1, then goes back into the nucleus where it attaches to the vaccine’s mRNA and reverse transcribes into spike DNA. Reverse transcription is when DNA is made from RNA, whereas the normal transcription process involves a portion of the DNA serving as a template to make an mRNA molecule inside the nucleus.

“In this study we present evidence that COVID-19 mRNA vaccine BNT162b2 is able to enter the human liver cell line Huh7 in vitro,” the researchers wrote in the study, published in Current Issues of Molecular Biology. “BNT162b2 mRNA is reverse transcribed intracellularly into DNA as fast as 6 [hours] after BNT162b2 exposure.” BNT162b2 is another name for the Pfizer-BioNTech COVID-19 vaccine that is marketed under the brand name Comirnaty. The whole process occurred rapidly within six hours. The vaccine’s mRNA converting into DNA and being found inside the cell’s nucleus is something that the Centers for Disease Control and Prevention (CDC) said would not happen. “The genetic material delivered by mRNA vaccines never enters the nucleus of your cells,” the CDC said on its web page titled “Myths and Facts about COVID-19 Vaccines.”

[..] The Swedish study also found spike proteins expressed on the surface of the liver cells that researchers say may be targeted by the immune system and possibly cause autoimmune hepatitis, as “there [have] been case reports on individuals who developed autoimmune hepatitis after BNT162b2 vaccination.” The authors of the first reported case of a healthy 35-year-old female who developed autoimmune hepatitis a week after her first dose of the Pfizer COVID-19 vaccine said that there is a possibility that “spike-directed antibodies induced by vaccination may also trigger autoimmune conditions in predisposed individuals” [..] Dr. Peter McCullough, an internist, cardiologist, and epidemiologist, wrote on Twitter that the Swedish study’s findings have “enormous implications of permanent chromosomal change and long-term constitutive spike synthesis driving the pathogenesis of a whole new genre of chronic disease.”


New Pfizer data dump: 9 pages of adverse reactions

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“The reason for failure has always been dose-related toxicity that has overtaken the benefit when used in sufficient quantity to actually deliver a therapeutic effect.”

• So About Not Needing Actual Study… (Denninger)

Oh, mRNA won’t get taken up into cell lines and thus can’t propagate on a permanent basis in the human body, we were told. Indeed that’s rather important. Mutagenic (cancer), cytotoxic (you’re ****ed) and teratogenic (any child you give birth to or sire is ****ed) things that get into cellular DNA can lead to irreversible damage because most cells in the body are replaced on regular basis. There’s an infamous quote that is in fact wrong: Our body fully replaces itself every seven years. That’s not true. It came out of a study that looked at the average age of cells in a human, using Carbon-14 dating. Anyone who has done any sort of statistical work knows the problem with averages: They are just that, and the statistical outliers are there but unaccounted for with such simplistic tripe.

There are several types of cells that are never replaced. Certain ones in the cerebellum, for example, that deal with coordination and balance, those in the ocular lenses and the eggs in a woman’s ovaries. There are also cells that are much more-frequently replaced. Red blood cells, for example, have a roughly 90 day life cycle. This is why an A1c test, which measures glycated hemoglobin (that is, red cells that have been damaged by glucose) will tell you what your average blood glucose level has been over the last three months. The epithelial cells in your intestines last only about five days, and the live (dermal) part of your skin is replaced in about 2 weeks. Skeletal muscle and the rest of your intestines, on the other hand, are good for around 15 years.

But with few exceptions it is indeed true that most cells are in fact replaced. This is why you can get cancer; when there is an error in that replication the result can be a cell that has wildly damaged regulatory mechanisms on self-replication. If that damage kills the cell immediately then there’s no real foul, but if it leads to much more rapid reproduction…… that’s cancer. We have known for quite a while that viruses can and do in some cases infiltrate into DNA. We know this because we’ve found pieces of viral RNA in our genome and not a few of them either; they’re literally all over the human genomic code. It’s wildly improbable that said congruence happened by random alignment of the various codons in our genetic code; ergo, it got in there at some point in evolution and then got into either the eggs of a developing female fetus or the sperm of a male and thus propagated.

We only know, of course, about the integrations that weren’t fatal to offspring or the person in question. We also know that in general genetic mutation is harmful or fatal nearly all the time, so that we have said evidence in our genome means this sort of thing happens quite frequently and most of the time it screws the person who has it happen to them. Indeed some cancers are blamed on viral infections where the viral RNA gets transcribed into the DNA of the cells and causes said errors. mRNA is not really “new” technology; Moderna has been trying to make it work for cancer, for example, for a long time — without success. The reason for failure has always been dose-related toxicity that has overtaken the benefit when used in sufficient quantity to actually deliver a therapeutic effect. This is not an uncommon reason for drug and therapy failure; in fact that too happens all the time.

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Zelensky Montenegro

 

 

 

 

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Debt Rattle February 5 2020

Feb 052020
 
 February 5, 2020  Posted by at 10:27 am Finance Tagged with: , , , , , , , , , , , , , , ,  31 Responses »


DPC Pine Street below Kearney after the great San Francisco earthquake and fire 1906

 

• China Applies For Drug Patent, Virus Death Toll +65 To 492 (SCMP)
• Cruise Ship Carrying 3,700 Quarantined In Japan After 10 Test Positive (G.)
• China’s Airlines Told Not To Axe Global Flights As Thousands Cut (R.)
• Cathay Pacific Asks All 27,000 Employees To Take 3 Weeks Unpaid Leave (SCMP)
• Trump-Pelosi Feud Erupts During SOTU As Impeachment Trial Nears End (R.)
• Ocasio-Cortez Among 10 Democrats Planning To Boycott State Of The Union (G.)
• Joe Biden Flopped In Iowa. And So Did The Democratic Party’s Reputation (G.)
• The Big Tech Money Behind The App That Brought Chaos To The Iowa Caucus (F.)
• Oil Flips Into Contango, Indicating Months Of Surplus (R.)
• Britain To Ban New Petrol And Hybrid Cars From 2035 (R.)
• Tesla Shares March Toward $1,000 (R.)
• Musk’s Tesla Stake Worth $30 Billion After Electrifying Stock Surge (R.)
• Council of Europe Sides With Julian Assange (IA)

 

 

Here we go again. The WuhanCorona virus continues on its record-setting path.

• Total cases 24,542 (+3872)

• 4,105 new cases in China (record daily high)

• 492 deaths (+65, also a record daily high)

• 185,555 cases under medical observation

Note: this pic below comes from a SCMP app that constantly updates. Numbers in articles do not necessarily. Therefore, they don’t always “add up”.

Note also the addition of recovered cases.

 

 

A few pics I picked up. How stark would you like it?

 

Here someone is trying to make the argument that the mortality rate is falling. That would be great, but I’m not sure it is true. Many factors have changed since the count began.

 

 

 

Gilead’s remdesivir looks like a Hail Mary. Not sure what the new patent application entails. A general anti-viral that came out of Ebola research?!

• China Applies For Drug Patent, Virus Death Toll +65 To 492 (SCMP)

Daily deaths caused by the new coronavirus have reached yet another record high in China, with 65 fatalities – all in Hubei province – confirmed in overnight figures released by health authorities. The newly reported fatalities took the death toll in mainland China to 490. According to data released on Wednesday morning by China’s National Health Commission (NHC), confirmed cases around the country rose by 3,887 – also a daily record high – to 24,324, the majority of which were in Hubei, the epicentre of the outbreak. Cases of the novel coronavirus in Hubei rose by 3,156 to 16,678, according to provincial figures as of midnight on Tuesday. Almost 2,000 of those new cases were confirmed in Hubei’s capital of Wuhan, where the virus is believed to have originated at a seafood and meat market.

China has applied for a new patent on an experimental drug to treat the coronavirus. Wuhan Institute of Virology said in an online notice that a patent application had been filed on January 21 for the use of remdesivir, a drug developed by biopharmaceutical company Gilead Sciences. The drug has not been approved or licensed anywhere in the world, but has been rushed into trials in China after showing signs of effective use on coronavirus patients. Chinese scientists have found remdesivir – and chloroquine, an 80-year-old malaria drug – “highly effective” in laboratory studies aimed at thwarting the coronavirus, they said in a paper published on Tuesday in the journal Cell Research.

The two drugs’ effect on humans required further clinical tests, the Wuhan institute said in the online notice. It made the patent application in the national interest and would not exercise its patent rights if foreign pharmaceutical firms worked with China to curb the contagion, it said.

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The only people that can get off the ship are the ones that are confirmed infected. Hell on water.

One 80-year-old tested positive After leaving the ship. Then 273 were tested. When the first 31 results came in, 10 tested positive. That leaces 3,300 untested?

• Cruise Ship Carrying 3,700 Quarantined In Japan After 10 Test Positive (G.)

Thousands of people face spending the next fortnight stuck on a luxury cruise ship quarantined off the Japanese port of Yokohama, after initial results showed 10 passengers have tested positive for the novel coronavirus. The Diamond Princess, with more than 3,700 passengers and crew onboard, had been prevented from sailing on Monday after an 80-year-old passenger who had travelled on the vessel late last month tested positive after he arrived home in Hong Kong. Of a further 273 people on board who have since been tested following health screenings, 31 results had come back – and of those 10 were positive, according to Japan’s health minister, Katsunobu Kato. It is not clear if more tests will be carried out.

Also on Wednesday, health checks began on 1,800 passengers and crew on a second cruise ship docked in Hong Kong, after 30 staff members reported symptoms including fever, according to Reuters. Hong Kong’s health department said that 90% of the passengers were Hong Kongers and no mainland Chinese were on board. Previously, three mainland Chinese that had been on the ship between 19 and 24 January, and were found to have contracted the virus. No passengers have been able to leave the World Dream ship, operated by Dream Cruises, without permission. David Abel, a British passenger who has been on the Diamond Princess for more than two weeks, said that people were now being confined to their cabins.

“We’re not even allowed to open the cabin door to go down the corridor. They bring the food to us – it’s a knock on the door. For the first time ever the crew are masked up,” he said. [..] Two Australians are among the 10 people who have tested positive, the cruise company Carnival confirmed. The other people infected are three Japanese, three from Hong Kong, one American and one Filipino crewmember. The patients, who are reportedly aged in their 50s to their 80s, were being removed from the ship by the coast guard and taken to local hospitals. The ship’s owner, Princess Cruises, said 3,711 people were aboard the ship, consisting of 2,666 guests and 1,045 crew. About half of the passengers are from Japan, with 223 Australians on the vessel.

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They’ll be stopped soon enough. There are no other options left.

• China’s Airlines Told Not To Axe Global Flights As Thousands Cut (R.)

China’s civil aviation authority has urged domestic carriers to continue flying international routes as they consider cuts in response to a drop in demand due to the coronavirus outbreak, state news agency Xinhua reported on Tuesday. Airline capacity is being axed in the world’s second largest aviation market with “the most dramatic change in schedules”, OAG Aviation Worldwide Ltd said, adding that more than 25,000 flights to, from or within China will be canceled this week. The coronavirus epidemic, which has killed more than 400 people in China, has resulted in bans or restrictions on travel to and from China imposed by countries including Singapore and Italy. The World Health Organization’s director-general, Tedros Adhanom Ghebreyesus, had said travel bans were unnecessary.


The Civil Aviation Administration of China’s appeal to the country’s airlines was reported on Xinhua’s account on Chinese messaging app Weibo. Data from aviation statistics provider VariFlight showed 41 Chinese carriers canceled nearly two-thirds of the 16,623 planned flights for Tuesday as of 10:30 a.m. Beijing time (0230 GMT). In addition, 10 regional airlines from Hong Kong and Taiwan had canceled 162 flights, while 37 airlines from other countries canceled 168 flights on the same day, VariFlight said. It also said that some 90,000 flights were canceled between Jan. 10 and Feb. 3, and that about 10,000 planned flights on average have been scrapped each day since the start of February.

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But Hong Kong’s airline is not listening…

• Cathay Pacific Asks All 27,000 Employees To Take 3 Weeks Unpaid Leave (SCMP)

Cathay Pacific is asking all of its 27,000 employees to take three weeks of unpaid leave over the coming months, the company’s CEO told staff on Wednesday, as Hong Kong’s flagship carrier reels from the devastating impact of the deadly coronavirus on air travel. “I am appealing to each and everyone one of you to help,” said Augustus Tang Kin-wing in a taped video recording. “The situation now is just as grave.” On Tuesday, Hong Kong’s flagship carrier unveiled massive cuts to flying schedules, by 30 per cent worldwide for two months, including in mainland China which would see 90 per cent of its capacity cut during that period.

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Grace, Nancy. It has a place. You lost your gamble, and the way you take your losses tells people a lot about you.

• Trump-Pelosi Feud Erupts During SOTU As Impeachment Trial Nears End (R.)

A bitter feud between U.S. President Donald Trump and top Democrat Nancy Pelosi boiled over at his State of the Union speech on Tuesday, with Trump denying her a handshake and Pelosi ripping apart a copy of his remarks behind his back. Trump avoided the subject of his impeachment drama in a pugnacious 80-minute speech, but the raw wounds from the battle were evident with fellow Republicans giving him standing ovations while rival Democrats for the most part remained seated. The Republican-led Senate was expected to acquit him of charges he abused his powers and obstructed Congress during a vote beginning at 4 p.m. EST on Wednesday.


How some Republicans watched SOTU

Seeing Pelosi, the U.S. House of Representatives speaker, for the first time since she stormed out of a White House meeting four months ago, Trump declined to shake her outstretched hand as he gave her a paper copy of his remarks before starting to speak. Despite having not spoken to Trump since their last meeting, Pelosi appeared to be taken aback. She avoided citing the customary “high privilege and distinct honor” that usually accompanies the speaker’s introduction of the president to Congress. “Members of Congress, the President of the United States” was all she said in introducing Trump.


When his speech ended, Pelosi stood and tore up her copy of the remarks he had handed her, later telling reporters it was “the courteous thing to do, considering the alternative.” Kayleigh McEnany, Trump’s campaign spokeswoman, said of Pelosi: “Her hatred for @realdonaldtrump has blinded her to the repulsive nature of her smug, elitist behavior.” After the event, Pelosi tweeted a photo of her with her hand reaching out to Trump and said, “Democrats will never stop extending the hand of friendship to get the job done #ForThePeople. We will work to find common ground where we can, but will stand our ground where we cannot. #SOTU”

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Preaching only to her own little crowd, empty virtue signals. Same as Pelosi: grace has its place.

• Ocasio-Cortez Among 10 Democrats Planning To Boycott State Of The Union (G.)

At least 10 Democrats have said they will boycott Donald Trump’s State of the Union address on Tuesday night on the eve of a Senate impeachment trial vote that is expected to acquit him. Congresswoman Alexandria Ocasio-Cortez, of New York, said she would not be attending because she did not want to normalize Trump’s “lawless conduct” and “subversion of the constitution”. Ayanna Pressley of Massachusetts issued a statement explaining her decision, saying: “The State of the Union is hurting because of the occupant of the White House, who consistently demonstrates contempt for the American people, contempt for Congress, and contempt for our constitution – strong-arming a sham impeachment trial in the Senate. This presidency is not legitimate.”


“On the eve of Senate Republicans covering up transgressions and spreading misinformation, I cannot in good conscience attend a sham State of the Union when I have seen firsthand the damage Donald J Trump’s rhetoric and policies have inflicted on those I love and those I represent.” Both women attended Trump’s State of the Union speech last year just a month after taking office, but have since been the target of his racist attacks. The two other members of “the Squad” of progressive freshman congresswomen who were also subjected to those attacks, Rashida Tlaib of Michigan and Ilhan Omar of Minnesota confirmed they would attend the address.

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Biden is gone. Buttigieg is suspicious. It’s not about the party’s reputation anymore, it’s about the Party itself.

• Joe Biden Flopped In Iowa. And So Did The Democratic Party’s Reputation (G.)

If you’re the type of person who thinks the Democratic party is a creaking, incompetent entity whose leadership needs overthrowing, the Iowa caucuses certainly validated your point of view. None of us knew who would win, but we had at least expected a result. We didn’t get one, at least not on caucus night. State Democratic party officials announced that due to “quality control” issues, release of the result would be indefinitely delayed. On a conference call with representatives of the candidates, party officials hung up the phone when asked when the totals would be released. So what do we know? Well, one thing we can say confidently is that “frontrunner” Joe Biden flopped.

There were places where Biden didn’t even meet the 15% threshold needed to maintain viability from the first round to the second round – at one caucus site, the attorney general of Iowa had to switch from Biden to Buttigieg when Biden was disqualified. It explains why Biden’s surrogate John Kerry was heard on the phone the other day asking whether it would be possible for him to enter the race at the last minute to save the Democratic party from being conquered by Sanders. Internal numbers released by the Sanders campaign, showing results from 40% of caucus sites, showed Sanders winning with approximately 30% of the vote, Pete Buttigieg coming in second with 25%, Elizabeth Warren third with 21%, and Joe Biden a very distant fourth with 12%.

If those numbers match the ultimate totals, they are great for Sanders and absolutely horrific for Biden. Sanders will have kicked the crap out of the frontrunner, Barack Obama’s former vice-president and the man most favored to win the nomination. It would be a stunning upset. But Biden caught a lucky break. With the party not releasing the actual result, his campaign sent a letter demanding that the result be suppressed until such time as the “quality control issues” were resolved. If it takes long enough to get the official count, Biden may hope that Iowa is old news, or that the issues surrounding the caucus are discussed far more than the actual result. (That’s one reason we need to make sure we don’t get bogged down too much in talking about the procedural issues rather than the actual outcome.)

[..] If you’re a Sanders supporter, you have reason to be suspicious. We had already seen the Des Moines Register suppress the results of its “gold standard” poll on the eve of the election, after a complaint from Buttigieg. And with 0% of caucus results in, Buttigieg declared himself “victorious”, praising the “incredible result” and saying Iowa had “shocked the nation”. The only thing that had shocked the nation at this point was Iowa’s total inability to perform the relatively simple task of counting people’s votes. But Buttigieg, good McKinseyite that he is, was getting a head start on deploying the PR spin.

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“..cutting-edge technology to stymie a Trump re-election..”

• The Big Tech Money Behind The App That Brought Chaos To The Iowa Caucus (F.)

The smartphone app that caused a major delay in reporting results during Iowa’s Democratic caucus was funded by both Democratic presidential candidates and Silicon Valley veterans anxious to use cutting-edge technology to stymie a Trump re-election. The app that was supposed to count and report caucus results was created by Shadow Inc., a for-profit tech company cofounded in February 2019 by former Google engineer Kirsta Davis and Gerard Niemira, an engineer who worked at San Francisco microlender Kiva.org. Both later worked on Hillary Clinton’s failed 2016 presidential campaign.


Washington D.C.-based Shadow was acquired last year by Acronym, a nonprofit also based in D.C. and founded in March 2017 by former journalist Tara McGowan to advance “progressive causes through innovative communications, advertising and organizing programs.” It has an affiliated political action committee called Pacronym. Silicon Valley heavyweights make up the liberal-leaning roster of Pacronym’s backers. One supporter is billionaire Michael Moritz, a partner at Sequoia Capital, whose net worth of $4.1 billion stems from his early bets on Google, LinkedIn and PayPal. According to Federal Election Committee data, he gave $1 million to Pacronym, or 12.8% of the $7.8 million that it has raised since early 2019.

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Mighty OPEC loses to tiny virus.

• Oil Flips Into Contango, Indicating Months Of Surplus (R.)

The oil market looks set for at least four months of depressed demand because of China’s coronavirus outbreak, with a large crude surplus not expected to clear at least until August, analysts and traders said. Fears of a virus-related slump in global energy demand have flipped the market into contango this week – a structure in which longer-dated oil futures trade at a premium that encourages traders to keep crude in storage for more profitable resale in the future. Brent crude has not been in contango since July 2019. On Tuesday the benchmark was in contango for as much as $0.40 a barrel between prices for closest trading month April and August. For U.S. West Texas Intermediate (WTI) crude the contango between March and July prices was $0.60 a barrel.

The structure of the market has significant implications. Besides encouraging storage of oil, contango also hurts financial investors who have to pay a premium every month they renew a futures contract. [..] Goldman Sachs, meanwhile, said the flip of time spreads into contango is consistent with the physical market suddenly shifting into a large surplus. “While deferred Brent time spreads are too discounted in our view, evidence that Chinese refiners are pushing back on crude shipments and Atlantic loadings points to ongoing weakness for nearby Brent time spreads,” Goldman said in a market note. China has been the main driver of global energy demand growth in recent years and ING Bank said the market is clearly worried that Chinese refinery demand will retreat.

“The issue for the market is if travel restrictions continue for an extended period … demand loss will become increasingly difficult for the market to swallow,” ING said, adding OPEC+ could come under increasing pressure to cut output by more than laid out in their existing supply pact.

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Until you have been explained exactly where the electricity will come from, this is nothing but a swindle. Do you like being swindled?

• Britain To Ban New Petrol And Hybrid Cars From 2035 (R.)

Britain will ban the sale of new petrol, diesel and hybrid cars from 2035, five years earlier than planned, in an attempt to reduce air pollution that could herald the end of over a century of reliance on the internal combustion engine. The step amounts to a victory for electric cars that if copied globally could hit the wealth of oil producers, as well as transform the car industry and one of the icons of 20th Century capitalism: the automobile itself. Prime Minister Boris Johnson is seeking to use the announcement to elevate the United Kingdom’s environmental credentials after he sacked the head of a Glasgow U.N. Climate Change Conference planned for November known as COP26.


“We have to deal with our CO2 emissions,” Johnson said at a launch event for COP26 at London’s Science Museum on Tuesday. “As a country and as a society, as a planet, as a species, we must now act.” The government said that, subject to consultation, it would end the sale of new petrol, diesel and hybrid cars and vans in 2035, or earlier if a faster transition was possible. Countries and cities around the world have announced plans to crack down on diesel vehicles following the 2015 Volkswagen emissions scandal and the EU is introducing tougher carbon dioxide rules. The mayors of Paris, Madrid, Mexico City and Athens have said they plan to ban diesel vehicles from city centres by 2025. France is preparing to ban the sale of fossil fuel-powered cars by 2040.

Read more …

Trading hot air.

• Tesla Shares March Toward $1,000 (R.)

Shares of Tesla Inc surged 20% on Tuesday to hit $940, extending a stunning rally that has more than doubled the company’s market value since the start of the year as more investors bet on Chief Executive Elon Musk’s vision. The latest surge was partly fueled by Panasonic saying on Monday its automotive battery venture with Tesla was in the black for the first time. “Investors are now starting to believe that Tesla can make mass-volume electric vehicles, and automakers, battery makers and suppliers can make money from EVs,” said Cho Hyun-ryul, analyst at Samsung Securities. Some analysts have attributed the rally to short covering as well. Short interest in Tesla stood at 13.8% as of Jan. 30, according to Refinitiv data.


Shares of heavily shorted companies can at times get pushed higher as traders rush to buy stock to cover their short bets, triggering what is known as a “short squeeze”. Panasonic shares closed up 10%, while those of Tesla’s Asian suppliers South Korea’s LG Chem and China’s CATL also closed higher. Tesla’s surge on Tuesday valued the company at nearly $170 billion, nearly double the combined market capitalization of General Motors and Ford Motor. Tesla last week reported a second consecutive quarterly profit and said it would comfortably make more than half a million vehicles this year. Billionaire investor Ron Baron, whose firm holds a nearly 1% stake in Tesla, said he will not be selling a single Tesla share, adding he believes the carmaker could hit $1 trillion in revenue in 10 years.

Read more …

Fridges for Inuit.

• Musk’s Tesla Stake Worth $30 Billion After Electrifying Stock Surge (R.)

Tesla is making Elon Musk a lot richer without paying him a dime. A blistering stock rally has bolstered the value of CEO Musk’s 19% stake in the electric car maker by $16 billion since the start of 2020, to $30 billion. Tuesday’s steep climb in the share price could sweeten Musk’s payday under his record-breaking compensation package, which is built on stock options that rely on market value targets. Two milestones have now been achieved that could see Musk unlock options worth $1.8 billion. The controversial chief executive, who is also the majority owner and CEO of rocket maker SpaceX, recently testified that he did not have a lot of cash as he successfully defended himself in a defamation lawsuit. He previously has taken loans using his Tesla shares as collateral.


Musk does not take a salary, choosing instead a risky options package that envisions the stock market value of Tesla rising to $650 billion over 10 years, a prospect that was derided by some investors when the deal was announced in 2018. That target now looks less crazy. Shares of Tesla have rallied over 50% since the company posted its second consecutive quarterly profit last Wednesday, which was viewed as a major accomplishment for a company competing against established automotive heavyweights including General Motors Co and BMW. Tesla shares have climbed about 400% since early June, helped by the company’s better-than-expected financial results and ramped-up production at its new car factory in Shanghai. [..] Musk’s Tesla stake worth $30 billion after electrifying stock surge

Read more …

Now apply the Force.

• Council of Europe Sides With Julian Assange (IA)

The attitude of European institutions is changing after years of silence. In this case, it was Andrej Hunko and Gianni Marilotti that convinced the European Assembly to speak up. The moment that press freedom advocates have been waiting for so long has finally arrived. The European institutions are starting to officially state that they don’t want Julian Assange to be extradited to the U.S. The Parliamentary Assembly of the Council of Europe (PACE) has become the first one to step in and call for Assange’s immediate release, joining the call of the United Nations Special Rapporteur on Torture, Nils Melzer, who some months ago clearly stated that Assange should walk free.

The call was made on the 28th of January, 2020, when the PACE was debating on a resolution for the Member States included in a report on Threats to Media Freedom and Journalists’ Security in Europe. Drafted by the Labour member of the British House of Lords, George Foulkes, the document opens stating that the Council of Europe and its Assembly are firmly committed to strengthening media freedom in all its aspects, including the right to access to information, the safeguard of editorial independence and of ‘the ability to investigate, criticise and contribute to public debate without fear of pressure or interference’. Several amendments to the report were proposed inside the PACE Committee on Culture, Science, Education and Media, and Lord Foulkes, who is part of it, was happy to accept the one on Assange.

Lord Foulkes said: “UK colleagues supported it because we don’t want to see him extradited by the UK Government to the United States and facing centuries in prison.” The Council of Europe is the continent’s leading institution on human rights and includes 47 member states, 28 of which are also part of the European Union. What this Parliamentary Assembly, made up of members of national legislatures says about freedom of the press is something civil society should take notice of. In this light, you would hope that the work of Wikileaks and his founder can hardly be forgotten. Or maybe it could — it seemed to be surprisingly off the agenda until some weeks ago, but January 2020 seems to have marked a change of course.

Read more …

 

Every color is home to 1 billion people. Find Wuhan on the map.

 

 

 

Please donate what you can.

 

Debt Rattle February 6 2019

Feb 062019
 
 February 6, 2019  Posted by at 10:41 am Finance Tagged with: , , , , , , , , , , , , , ,  9 Responses »


Pablo Picasso Portrait de femme au col d’hermine (Olga) 1923

 

• Trump Calls For End To ‘Politics Of Revenge,’ Touts ‘Hottest Economy’ (AP)
• Trump, Kim To Hold Second Summit In Vietnam At End Of February (AP)
• Too Fast, Too Furious (Roberts)
• Elizabeth Warren Apologizes For Identifying As Native American (MW)
• May Rules Out Brexit Delay And Hard Border With Ireland (G.)
• Ireland And EU Discuss Emergency Funding For No-Deal Brexit (G.)
• China: Expansion, Stagnation and Decline (CHSmith)
• French Lawmakers Approve Controversial ‘Anti-Riot’ Bill (F24)
• Judge Pauses Lawsuits Against Cryptocurrency Company Quadriga (R.)
• 5G Wireless: A “Massive Health Experiment” (SHTF)
• 18% Of Young People In UK Do Not Think Life Is Worth Living (G.)
• 50,000 Elderly In UK -77 Per Day- Die Waiting For Social Care (G.)

 

 

At least they all agree on Venezuela.

• Trump Calls For End To ‘Politics Of Revenge,’ Touts ‘Hottest Economy’ (AP)

Facing a divided Congress for the first time, President Donald Trump on Tuesday called on Washington to reject “the politics of revenge, resistance and retribution.” He warned emboldened Democrats that “ridiculous partisan investigations” into his administration and businesses could hamper a surging American economy. Trump’s appeals for bipartisanship in his State of the Union address clashed with the rancorous atmosphere he has helped cultivate in the nation’s capital — as well as the desire of most Democrats to block his agenda during his next two years in office. Their opposition was on vivid display as Democratic congresswomen in the audience formed a sea of white in a nod to early 20th-century suffragettes.

Trump spoke at a critical moment in his presidency, staring down a two-year stretch that will determine whether he is re-elected or leaves office in defeat. His speech sought to shore up Republican support that had eroded slightly during the recent government shutdown and previewed a fresh defense against Democrats as they ready a round of investigations into every aspect of his administration. “If there is going to be peace and legislation, there cannot be war and investigation,” he declared. Lawmakers in the cavernous House chamber sat largely silent.

[..] One bright spot for the president has been the economy, which has added jobs for 100 straight months. He said the U.S. has “the hottest economy anywhere in the world.” He said, “The only thing that can stop it are foolish wars, politics or ridiculous partisan investigations” an apparent swipe at the special counsel investigation into ties between Russia and Trump’s 2016 campaign, as well as the upcoming congressional investigations. The diverse Democratic caucus, which includes a bevy of women, sat silently for much of Trump’s speech. But they leapt to their feet when he noted there are “more women in the workforce than ever before.”

Read more …

Haven’t heard Moon for a while. There’s talk of a NoKor industrial area reopening.

• Trump, Kim To Hold Second Summit In Vietnam At End Of February (AP)

President Donald Trump said Tuesday that he will hold a two-day summit with North Korea leader Kim Jong Un Feb. 27-28 in Vietnam to continue his efforts to persuade Kim to give up his nuclear weapons. Trump has said his outreach to Kim and their first meeting last June in Singapore opened a path to peace. But there is not yet a concrete plan for how denuclearization could be implemented. Denuclearizing North Korea is something that has eluded the U.S. for more than two decades, since it was first learned that North Korea was close to acquiring the means for nuclear weapons. “As part of a bold new diplomacy, we continue our historic push for peace on the Korean Peninsula,” Trump said in his State of the Union address.

Director of National Intelligence Dan Coats told Congress last week that U.S. intelligence officials do not believe Kim will eliminate his nuclear weapons or the capacity to build more because he believes they are key to the survival of the regime. [..] At the second Trump-Kim summit, some experts say North Korea is likely to seek to trade the destruction of its main Yongbyon nuclear complex for a U.S. promise to formally declare the end of the 1950-53 Korean War, open a liaison office in Pyongyang and allow the North to resume some lucrative economic projects with South Korea. “Our hostages have come home, nuclear testing has stopped, and there has not been a missile launch in 15 months,” Trump said. “If I had not been elected President of the United States, we would right now, in my opinion, be in a major war with North Korea.

Read more …

Interesting, good graph. It’s just that referring to ‘markets’ means you’re guaranteed to get so many things wrong. There are no markets when the Fed decides prices insead of allowing markets to do so.

• Too Fast, Too Furious (Roberts)

As noted by Deutsche Bank’s Parag Thatte noted recently: “While the S&P 500 rallied +15% since late December, equity funds have continued to see large outflows. As Thatte elaborates, “US equity funds in particular have continued to see large outflows (-$40bn) since then, following massive outflows (-$77bn) through the sell-off from October to December.” This confirms our concern the recent rally has primarily been a function of short-covering and repositioning in the markets rather than an “all-out” buying spree based on a “conviction” the “bull market” remains intact.

David Rosenberg recently confirmed the same: “Let’s go back to December for a minute. This was the worst December since 1931, mind you, followed by the best January since 1987. This is nothing more than market that has gone completely manic. To suggest that there is anything fundamental about this dead-cat bounce in equities is laughable. This is an economy, and a market, that couldn’t even sustain a 3% yield on the 10-year T-note. It sputtered at the thought of the Fed taking the funds rate marginally above zero on a ‘real’ basis, even as it feasted on unprecedented stimulus for a such a late-cycle economy. Yes, Powell et al. helped trigger this latest up-leg, not just at last week’s meeting, but in the lead-up to the confab as well. The Fed has been crying uncle for weeks now.”

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Too many attempts at covering lies with other ones. What was she thinking?

• Elizabeth Warren Apologizes For Identifying As Native American (MW)

Sen. Elizabeth Warren apologized Tuesday for previously identifying herself as a Native American. In an interview with the Washington Post, the Massachusetts Democrat expanded on an apology issued last week to the Cherokee Nation. “I can’t go back,” she told the Post. “But I am sorry for furthering confusion on tribal sovereignty and tribal citizenship and harm that resulted.” As a presidential candidate, Warren has been trying to fight accusations that she identified as Native American to advance her career as a professor at Harvard and Penn law schools. In the same report, the Post published Warren’s previously undisclosed 1986 registration card to the State Bar of Texas, in which she handwrote her ethnicity as “American Indian.”

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Thought she might flee into an Article 50 extension. But it wouldn’t bring anything. She’s close to checkmate.

• May Rules Out Brexit Delay And Hard Border With Ireland (G.)

Theresa May fired a warning shot at Brexit supporters on Tuesday, insisting there was “no suggestion” Britain would leave the EU without an insurance provision to protect against a hard border in Northern Ireland. At a speech in Belfast, May would only accept that technology could “play a part” in any alternative arrangements and that she would not countenance anything that would disrupt the lives of border communities. Brexit supporters immediately expressed their alarm at some of May’s language, which they fear could be read as a step back from previous assurances. “She knows what she promised us,” one ERG source said. “Even if she didn’t mean what she said, we do.”

The comments came as May prepared to meet EU leaders in Brussels for the first time since the historic defeat of her Brexit deal, where she is expected to formally request the reopening of the withdrawal agreement in order to address concerns about the backstop. The prime minister will travel to the Belgian capital on Thursday, meeting the European commission president, Jean-Claude Juncker, the EU parliament president Antonio Tajani, and the European council president. Donald Tusk. Both Tusk and Juncker have been adamant that the withdrawal agreement will not be reopened.

Number 10 sources suggested they did not expect a warm reception, but that it would signal the start of a new diplomatic process, involving proposals on the backstop worked on by MPs and ministers. Earlier on Tuesday, May told her cabinet she would not countenance any delay to the UK’s exit on 29 March, a message to ministers such as Jeremy Hunt and Sajid Javid who have suggested at least some delay might now be inevitable. Ministers who are more pessimistic about the prospects of the UK leaving on time with a deal held their tongues in the meeting after May’s warning. “She was pretty clear she had no time for anyone calling for it to be extended,” one cabinet source said.

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“He has previously said Ireland would seek “mega-money” from the EU.”

• Ireland And EU Discuss Emergency Funding For No-Deal Brexit (G.)

Ireland is in talks with the EU over a substantial Brexit emergency fund to offset the damage caused to the country’s €4.5bn (£3.96bn) food exports to Britain if the UK crashes out of the bloc with no deal next month. As Theresa May prepares for a crunch meeting in Brussels on Thursday, officials at the European commission are already looking at continuous compensatory measures for Ireland as part of an ongoing arrangement that could last years. Contingency funds to compensate farmers have already been discussed at the highest levels and are expected to arise in talks with the taoiseach, Leo Varadkar, during a round of meetings in Brussels on Wednesday.

Sources say Ireland will be looking for a “long-term fix” in EU budget talks in April rather than a lump sum Brexit bailout. Politicians have cited the ongoing assistance given to the Baltic states after Russia banned certain food exports from the EU as an example of financial solidarity it hopes to win in a no-deal Brexit. Ireland exports €4.5bn worth of food and drink a year to the UK, ranging from beef to cheddar cheese. Calculations by the Department of Agriculture put the cost of tariffs under World Trade Organization rules at €1.7bn. Michael Creed, Ireland’s minister for agriculture, food and the marine, has said this would be an “existential challenge” for the food and drink sector. He has previously said Ireland would seek “mega-money” from the EU.

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“China entered 2008 with $8 billion in officially counted debt; 10 years later that debt is $40 trillion..”

• China: Expansion, Stagnation and Decline (CHSmith)

China entered 2008 with $8 billion in officially counted debt; 10 years later that debt is $40 trillion, plus unknown trillions more in the shadow banking system which expanded the options for risky speculation and massive expansions of credit. Like all the other stagnating economies, China’s “solution” to stagnation was to expand debt-funded speculation and “investments” with little to no actual return. The high water mark of China’s financialization orgy was 2018. From now on, adding debt simply adds more drag on the underlying economy, as income is diverted to service speculative debt and defaults start hollowing out both the official banking system and the shadow banking system.

All the policies that worked in the Boost Phase no longer work. the policy tool chest is empty, and so China’s leadership is doing more of what’s failed: burying bad debt off the visible balance sheets, re-issuing new loans to pay off defaulted debt, and all the usual tricks of a failed banking/credit system. Japan has papered over its systemic rot and decline for 30 years by using a financial Perpetual Motion Machine: the state borrows and spends trillions by selling bonds to the central bank, which in effect prints “free money” for the state to burn propping up a sclerotic, corrupt, failed status quo.

If that’s policy makers’ idea of success, they are delusional. Credit/asset bubbles all deflate, and central bank buying of assets only gives the lie to the illusion of stability and market liquidity. Simply put, there is no indication China’s leadership has any plan to manage the inevitable stagnation and decline of China’s economy that is now painfully obvious to anyone with the slightest willingness to look beneath the flimsy propaganda of official statistics. They are not alone, of course; every other major economy is equally bereft of policies and equally dependent on bogus statistics and debt to paper over the decline.

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Macron support slips further. “50 MPs from Macron’s own party abstained from voting”.. but “The main thing is that there were no votes against..”, says the party.

• French Lawmakers Approve Controversial ‘Anti-Riot’ Bill (F24)

French MPs on Tuesday approved an anti-rioting bill giving security forces the power to ban suspected hooligans from demonstrating, in a controversial bid to crack down on violence that has marred Yellow Vest protests over the last three months. Opponents say the bill, approved by the lower house of parliament by 387 votes to 92, contravenes the constitutional right to demonstrate. Under its most contentious provision, government officials would be able to ban people suspected of being hooligans from taking part in demonstrations – without oversight from a judge. Inspired by legislation used to crack down on football hooligans, the new law calls for a six-month prison sentence and a €7,500 ($8,500) fine for violators.

The legislation, if passed by the upper house and approved by the constitutional council, would also allow fines of €15,000 ($17,000) and a one-year prison term for demonstrators covering or masking their faces to escape identification. It would also hand French police greater powers to search would-be demonstrators for weapons. [..] Unusually, some 50 MPs from Macron’s own party, the Republic on the Move (LREM), abstained from voting in favour of the legislation on Tuesday in a sign of divisions within the group. [..] “The main thing is that there were no votes against,” Gilles Le Gendre, who heads LREM’s parliamentary group, told reporters after the vote on Tuesday.

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A very curious case. We’ll hear much more of it.

• Judge Pauses Lawsuits Against Cryptocurrency Company Quadriga (R.)

A cryptocurrency platform that lost access to millions of dollars when its founder died with sole knowledge of company passwords has been granted a temporary reprieve from creditor lawsuits. Halifax judge Michael Wood on Tuesday ordered a 30-day stay that precludes filing of claims against Quadriga, a Canadian cryptocurrency exchange that has left thousands of investors without their money after the death of founder Gerald Cotten. Customers have threatened lawsuits. Ernst & Young has been appointed the company’s third-party monitor, to help manage Quadriga’s finances during the process.

Cotten, who died in December of complications from Crohn’s disease while in India, was the only person who had passwords to digital wallets containing C$180 million ($137.13 million) in cryptocurrencies, according to court filings. He was 30 years old. “Despite repeated and diligent searches, I have not been able to find (the passwords) written down anywhere,” his widow Jennifer Robertson said in an affidavit. A court file indicates Quadriga owes 115,000 users the equivalent of C$250 million ($190.46 million). The document showed Quadriga has $30 million in bank drafts, many of which it has had trouble depositing. Lawyer Maurice Chiasson told the court the company wants time to find the C$250 million it owes users. According to court filings the company is considering selling its platforms to cover its debts.

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The riches of smartphones.

• 5G Wireless: A “Massive Health Experiment” (SHTF)

Experts are warning that superfast broadband known as 5G could cause cancer in humans, and the usage of 5G is nothing more than a “massive health experiment.” 5G could very well be a global catastrophe that kills wildlife, gives people terminal diseases, and causes the Earth’s magnetic field to change, according to shocking claims by a technology expert. Arthur Robert Firstenberg is an American author and an activist for electromagnetic radiation and health. In his 1997 book Microwaving Our Planet: The Environmental Impact of the Wireless Revolution, he claimed: “The telecommunications industry has suppressed damaging evidence about its technology since at least 1927.”

Firstenberg has also founded the independent campaign group the Celluar Phone Task Force and since 1996 he has argued in numerous publications that wireless technology is dangerous. According to a report by the Daily Star, Firstenberg has also recently started an online petition calling on world organizations, such as the United Nations, World Health Organisation (WHO), and European Union to “urgently halt the development of 5G,” which is due to be rolled out this year. In fact, Verizon has activated the world’s first 5G networks in four cities in the United States: Houston, Indianapolis, Los Angeles, and Sacramento. According to the Firstenberg, wireless networks are “harmful for humans” and the development of the next generation is “defined as a crime” under international law, as he states it in the online petition.

When speaking to The Daily Star Online, Firstenberg said this 5G rollout is deadly. “There is about to be as many as 20,000 satellites in the atmosphere. The FCC approved Elon Musk’s project for 12,000 satellites on November 15th and he’s going to launch his in mid-2019. I’m getting reports from various parts of the world that 5G antennas are being erected all over and people are already getting sick from what’s there now and the insect population is getting affected,” Firstenberg stated.

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More riches of smartphones. Someone soon will propose a better term than ‘smart’-phones.

• 18% Of Young People In UK Do Not Think Life Is Worth Living (G.)

The number of young people in the UK who say they do not believe that life is worth living has doubled in the last decade, amid a sense of overwhelming pressure from social media which is driving feelings of inadequacy, new research suggests. In 2009, only 9% of 16-25-year-olds disagreed with the statement that “life is really worth living”, but that has now risen to 18%. More than a quarter also disagree that that their life has a sense of purpose, according to a YouGov survey of 2,162 people for the Prince’s Trust, a charity that helps 11 to 30-year-olds into education, training and work. Youth happiness levels have fallen most sharply over the last decade in respect of relationships with friends and emotional health, the survey found, while satisfaction with issues like money and accommodation have remained steady.

The Prince’s Trust has been gauging youth opinion for 10 years and found that just under half of young people who use social media now feel more anxious about their future when they compare themselves to others on sites and apps such as Instagram, Twitter and Facebook. A similar amount agree that social media makes them feel “inadequate”. More than half (57%) think social media creates “overwhelming pressure” to succeed. The gloomy view on life being taken by a growing minority of young people comes amid reports of an increased rate of teenage suicide. It was reported on Sunday that official statistics due later this year will show that suicides now occur at more than five in 100,000 teenagers in England. That contrasts with a figure of just over three in 100,000 in 2010.

“Social media has become omnipresent in the lives of young people and this research suggests it is exacerbating what is already an uncertain and emotionally turbulent time,” said Nick Stace, UK chief executive of The Prince’s Trust. “Young people are critical to the future success of this country, but they’ll only realise their full potential if they believe in themselves and define success in their own terms. It is therefore a moral and economic imperative that employers, government, charities and wider communities put the needs of young people centre stage.”

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Britain gets rid of its old and its young. And presumably other ‘weaker’ groups.

• 50,000 Elderly In UK -77 Per Day- Die Waiting For Social Care (G.)

More than 50,000 people have died waiting for care while ministers dither over long-awaited plans to overhaul the funding of social care, a charity has claimed. Age UK estimated that 54,000 people – or 77 a day – have died while waiting for a care package in the 700 days since the government first said in March 2017 it would publish its social care green paper, which has since been delayed several times. The claim came as a cross-party group of MPs warned that the government was “in denial” about the perilous state of English local authority finances – a crisis driven by a growing demand for the care of vulnerable adults and children.

The Commons public accounts committee (PAC) said that after eight years in which central government funding had halved, councils were under “enormous pressure” just to maintain essential services. MPs accused ministers of having no meaningful plan to ensure local authority finances were sustainable in the future. Overall spending by local authorities on services fell by 19.2% in real terms between 2010-11 and 2016-17, according to the report. Meg Hillier, the committee chair said: “Government needs to get real, listen fully to the concerns of local government and take a hard look at the real impact funding reductions have on local services.”

The chancellor, Philip Hammond, announced a funding boost for councils at last autumn’s budget, amounting to £1.4 bn in 2018-19 and 2019-20. But the PAC said such short-term fixes failed to deal with the underlying challenges facing councils. It urged the government to focus on assuring the long-term sustainability of local authority finances, and be more ambitious than simply allowing them to “cope”.

Read more …

Debt Rattle January 31 2018

Jan 312018
 
 January 31, 2018  Posted by at 10:58 am Finance Tagged with: , , , , , , , , , , ,  8 Responses »


Paul Gauguin Farm in Brittany 1894

 

• Market Euphoria May Turn to Despair If 10-Year Yield Jumps to 3% (BBG)
• Forget Stocks, Look At EU Bonds – They Are The Real Problem (Luongo)
• The Ticking Time Bomb in the Municipal-Bond Market (Barron’s)
• UK Interest-Only Mortgagees Are at Risk of Losing Their Homes
• US National Debt Will Jump by $617 Billion in 5 Months (WS)
• Trump Urges Congress To Pass $1.5 Trillion In Infrastructure Spending (R.)
• Trump Joins Bezos, Dimon, Buffett In Pledge To Stop Soaring Drug Prices (MW)
• Trump Says ‘100%’ After He’s Asked to Release GOP Memo (BBG)
• Saving Rate Drops to 12-Year Low As 50% of Americans Don’t Have Savings (WS)
• U.S. Regulators Subpoena Crypto Exchange Bitfinex, Tether (BBG)
• Customer Lawsuits Pummel Spanish Banks (DQ)
• Britons Ever More Deeply Divided Over Brexit (R.)
• The GDP of Bridges to Nowhere (Michael Pettis)

 

 

If central banks and governments have really lost control over bonds, find shelter.

• Market Euphoria May Turn to Despair If 10-Year Yield Jumps to 3% (BBG)

It’s getting harder and harder to quarantine the selloff in Treasuries from equities and corporate bonds. The benchmark 10-year U.S. yield cracked 2.7% on Monday, rising to a point many forecasters weren’t expecting until the final months of 2018. For over a year, range-bound Treasuries helped keep financial markets in a Goldilocks state, with interest rates slowly rising due to favorable forces like stronger global growth and the Federal Reserve spearheading a gradual move away from crisis-era monetary policy. Yet the start of 2018 caught many investors off guard, with the 10-year yield on pace for its steepest monthly increase since November 2016. It’s risen 30 basis points this year and reached as high as 2.73% in Asian trading Tuesday.

Suddenly, they’re confronted with thinking about what yield level could end the good times seen since the presidential election. For many, 3% is the breaking point at which corporate financing costs would get too expensive, the equity market would lose its luster and growth momentum would fade. “We are at a turning point in the psyche of markets,” said Marty Mitchell, a former head government bond trader at Stifel Nicolaus & Co. and now an independent strategist. “A lot of people point to 3% on the 10-year as the critical level for stocks,” he said, noting that higher rates signal traders are realizing that quantitative easing policies really are on the way out.

U.S. stocks have set record after record, buoyed by strong corporate earnings, President Donald Trump’s tax cuts and easy U.S. financial conditions. The S&P 500 Index has returned around 6.8% this year, once reinvested dividends are taken into account, and the U.S. equity benchmark is already higher than the level at which a Wall Street strategists’ survey last month predicted it would end 2018. What often goes unsaid in explaining the equity-market exuberance is that Treasury yields refused to break higher last year. Instead, they remained in the tightest range in a half-century, allowing companies to borrow cheaply and forcing investors to seek out riskier assets to meet return objectives.

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It’s all bonds, not even just sovereign bonds. Investors will move from equities into bonds all over the place.

• Forget Stocks, Look At EU Bonds – They Are The Real Problem (Luongo)

While all the headlines are agog with stories about the Dow Jones dropping a couple hundreds points off an all-time high, German bunds are getting killed right before our eyes. The Dow is simply a market overdue for a meaningful correction in a primary bull market. And it’s a primary bull market brought on by a slow-moving sovereign debt crisis that will engulf Europe. It’s not the end of the story. Hell, the Dow isn’t even a major character in the story. In fact, similar stories are being written in French 10 year debt, Dutch 10 year debt, and Swiss 10 year debt. These are the safe-havens in the European sovereign debt markets. Meanwhile, Italian 10 year debt? Still range-bound. Portuguese 10 year debt? Near all-time high prices. The same this is there with Spain’s debt. All volatility stamped out. Why? Simple. The ECB.

The ECB’s quantitative easing program and negative interest rate policy (NIRP) drove bond yields across the board profoundly negative for more than a year. [..] the ECB is trapped and cannot allow rates to rise in the vulnerable sovereign debt markets — Italy, Portugal, Spain — lest they face bank failures and a real crisis. The problem with that is, the market is scared and so they are selling the stuff the ECB isn’t buying – German, French, Dutch, Swiss debt. In simple terms, we are seeing the flight into the euro intensify here as investors are raising cash. The euro and gold are up. The USDX continues to be weak even though capital is pouring into the U.S. thanks to fundamental changes to tax and regulatory policy under President Trump. In the short term Dow Jones and S&P500 prices are overbought. Fine. Whatever. But, the real problem is not that. The real problem is the growing realization in the market that governments and central banks do not have an answer to the debt problem.

[..] The U.S. economy is about to be unleashed by Trump’s tax cut law. It will be able to absorb higher interest rates for a while. Yield-starved pension funds, as Armstrong rightly points out, will be bailed out slightly forestalling their day of reckoning. And in doing so, higher rates in the U.S. are driving core-rates higher in Europe. An overly-strong euro is crushing any hope of further economic recovery in the periphery, like Italy. The debt load on Italy et.al. has increased relative to their national output by around 20% since the end of 2016. This will put the ECB at risk of a massive loss of confidence when Italian banks start failing, Italy’s budget deficit starts expanding again and hard-line euroskeptics win the election in March. As capital is drained out of Europe into U.S. equities, the dollar, gold and cryptocurrencies, things should begin to spiral upwards rapidly.

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See? More bonds. Meredith Whitney was 10 years early.

• The Ticking Time Bomb in the Municipal-Bond Market (Barron’s)

There’s a looming disaster in the market for municipal debt. Every market participant knows about it, and there isn’t much any of them can do about it. Many state and local governments, even more than corporations, have promised generous pensions they can’t afford. The promises may have looked plausible in the past, especially during the dot-com boom, when money that pension funds put in the markets was doubling. When the market crashed, so did their returns—and, a few years later, the global financial crisis took out another substantial chunk. And with interest rates at historic lows, bonds have failed to deliver the income the funds relied on. While governments delay dealing with the problem as long as they can, analysts and researchers are wondering if we have reached the point of no return. For investors in municipal bonds, it could mean future defaults and losses.

“We are increasingly wary of high pension exposure, especially among state and local credits,” the Barclays muni-research team wrote this month, citing “inflated return targets, low funded ratios, growing obligations, perhaps heavy allocations to equities and compressed tax revenues make for especially adverse conditions.” What’s more, “short-term investment gains won’t be sufficient to plug liability gaps.” Yet many pensions still assume they will be able to generate the returns they saw in the past. New Jersey’s pension and the California Public Employees’ Retirement System have lowered their assumed rate of return to 7%. But with the 30-year Treasury yielding less than 3% and stocks already at record highs, it’s unclear how public markets can generate 7%—which is why many pensions have turned to higher-risk, lower-liquidity strategies, such as private equity.

Muni investors, for their part, are increasingly sensitive to pensions’ widening gap. After the financial crisis and the ensuing recession, they suddenly became interested in pension finances. A report late last year by the Center for Retirement Research at Boston College found that, as pension liabilities grew, spreads between state and local municipal bonds and Treasuries also increased. When such issuers came to issue new debt, they discovered the market was charging them more to borrow. “Pensions have become increasingly relevant to the municipal bond markets and can have a meaningful impact on the borrowing costs of a municipality,” the report says.

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Rising bond yields mean higher mortgage rates. Australia is overflowing with interest only loans. Plenty other countries have loads of it too.

• UK Interest-Only Mortgagees Are at Risk of Losing Their Homes

Some borrowers with interest-only mortgages may lose their homes as a result of shortfalls in repayment plans, the U.K.’s Financial Conduct Authority warned. The FCA has identified three peaks in interest-only mortgage repayments, the first of which is currently underway. Defaults are less likely in the present wave of maturities because the homeowners are approaching retirement and have higher incomes. The next two peaks, from 2027 through 2028 and in 2032, are more at risk of shortfalls, the regulator said. Customers are reluctant to discuss with their lenders how they’ll pay off the loans, limiting their options, the FCA found. Almost 18% of outstanding mortgages in the U.K. are interest-only or involve only partial payment of the capital, according to the statement.

“Since 2013, good progress has been made in reducing the number of people with interest-only mortgages,” Jonathan Davidson, executive director of supervision retail and authorization at the regulator, said in a statement. “However, we are very concerned that a significant number of interest-only customers may not be able to repay the capital at the end of the mortgage and be at risk of losing their homes.” The FCA reviewed 10 lenders representing about 60% of the interest-only mortgage market for the study. The supervisor also urged lenders to review and improve their own strategies regarding repayment of the loans.

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Now add some infrastructure.

• US National Debt Will Jump by $617 Billion in 5 Months (WS)

While everyone is trying to figure out how to twist the new tax cut to their advantage and save some money, the US Treasury Department just announced how much net new debt it will have to sell to the public through the second quarter to keep the government afloat: $617 billion. That’s what the Treasury Department estimates will be the total amount added to publicly traded Treasury securities — or “net privately-held marketable borrowing” — through the end of the second quarter. This will be the net increase in the US debt through the end of Q2. By quarter: During Q1, the Treasury expects to increase US public debt by $441 billion. It includes estimates for “lower net cash flows.” During Q2 – peak tax seasons when revenues pour into the Treasury – it expects to increase US public debt by $176 billion.

It also “assumes” that with these increases in the debt, it will have a cash balance at the end of June of $360 billion. So over the next five months, if all goes according to plan, the US gross national debt of $24.5 trillion currently – which includes $14.8 trillion in publicly traded Treasury securities and $5.7 trillion in internally held debt – will surge to about $25.1 trillion. That’s a 4% jump in just five months. Note the technical jargon-laced description for this (marked in green on the chart). The flat lines in 2013, 2015, and 2017 are a result of the prior three debt-ceiling fights. Each was followed by an enormous spike when the debt ceiling was lifted or suspended, and when the “extraordinary measures” with which the Treasury keeps the government afloat were reversed. And note the current debt ceiling, the flat line that started in mid-December.

In November, Fitch Ratings said optimistically that, “under a realistic scenario of tax cuts and macro conditions,” the US gross national debt would balloon to 120% of GDP by 2027. The way things are going right now, we won’t have to wait that long. Back in 2012, gross national debt amounted to 95% of GDP. Before the Financial Crisis, it was at 63% of GDP. At the end of 2017, gross national debt was 106% of GDP! Over the next six month, the debt will grow by about 4%. Unless a miracle happens very quickly, the debt will likely grow faster over the next five years due to the tax cuts than over the past five years. But over the past five years, the gross national debt already surged nearly 25%, or by $4.1 trillion. So that’s a lot of borrowing, for an economy that is growing at a decent clip.

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Coverage of SOTU proves my point: Moses split the nation.

As for infrastructure, they will go for what provides most short term gain. That is, make people pay. For roads, not public transport, for instance.

• Trump Urges Congress To Pass $1.5 Trillion In Infrastructure Spending (R.)

President Donald Trump called on the U.S. Congress on Tuesday to pass legislation to stimulate at least $1.5 trillion in new infrastructure spending. In his State of the Union speech to Congress, Trump offered no other details of the spending plan, such as how much federal money would go into it, but said it was time to address America’s “crumbling infrastructure.” Rather than increase federal spending massively, Trump said: “Every federal dollar should be leveraged by partnering with state and local governments and, where appropriate, tapping into private-sector investment.” The administration has already released an outline of a plan that would make it easier for states to build tollways and to privatize rest stops along interstate highways.

McKinsey & Company researchers say that $150 billion a year will be required between now and 2030, or about $1.8 trillion in total, to fix all the country’s infrastructure needs. The American Society of Civil Engineers, a lobbying group with an interest in infrastructure spending, puts it at $2 trillion over 10 years. Trump said any infrastructure bill needed to cut the regulation and approval process that he said delayed the building of bridges, highways and other infrastructure. He wants the approval process reduced to two years, “and perhaps even one.” Cutting regulation is a top priority of business lobbying groups with a stake in building projects and the U.S. Chamber of Commerce.

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Just the kind of folk you want in charge of your health. With your medical needs standing in the way of their profits.

• Trump Joins Bezos, Dimon, Buffett In Pledge To Stop Soaring Drug Prices (MW)

President Trump pledged to bring down drug prices. “One of my greatest priorities is to reduce the price of prescription drugs,” Trump said during his State of the Union address on Tuesday evening. “In many other countries, these drugs cost far less than what we pay in the United States and it’s over, very unfair. That is why I have directed my administration to make fixing the injustice of high drug prices one of our top priorities for the year.” Mark Hamrick, Washington, D.C. bureau chief at Bankrate.com, said the president has made that promise before. “Will his choice of a former drug industry executive, Alex Azar, now the head of Health and Human Services, deliver results on that front?” he said. “I’d prefer to place my bet on the partnership just announced by Berkshire Hathaway, J.P. Morgan Chase and Amazon.”

Earlier Tuesday, Amazon, Berkshire Hathaway and JP Morgan Chase, three of the biggest companies in the U.S., surprised the health-care industry on Tuesday with a plan to form a company to address rising health costs for their U.S. employees. They said it will be “free from profit-making incentives and constraints.” Health-care costs have skyrocketed over the last 60 years, according to the Kaiser Family Foundation, a nonprofit, private foundation based in Washington, D.C. In 1960, hospital costs cost $9 billion. In 2016, they cost $1.1 trillion. In 1960, physicians and clinics costs were $2.7 billion, but ballooned to $665 billion. Prescription drug prices soared from $2.7 billion in 1960 to $329 billion. U.S. health-care spending reached $3.3 trillion, or $10,348 per person in 2016.

The Trump administration has pledged to roll back the 2010 Affordable Care Act, perhaps Barack Obama’s signature achievement as U.S. president. Roughly 1 million people will lose their insurance under Trump’s plans, according to the Congressional Budget Office. Berkshire Hathaway chairman and CEO Warren Buffett didn’t hold back in excoriating the health-care industry. “The ballooning costs of health care act as a hungry tapeworm on the American economy,” Buffett said. Amazon founder CEO Jeff Bezos and J.P. Morgan Chase chairman and CEO Jamie Dimon were more measured in their remarks. “Amazon, Chase and Berkshire Hathaway think they can do it better than the insurance companies,” said Jamie Court, president of Consumer Watchdog. “There’s a lot of frustration with the high cost of health insurance, yet government’s offering almost no systemic solutions. It’s as big a change as I have seen in the market in years.”

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Just do it?! Perhaps it makes sense not to release it before SOTU, it would have been the only talking point.

• Trump Says ‘100%’ After He’s Asked to Release GOP Memo (BBG)

President Donald Trump was overheard Tuesday night telling a Republican lawmaker that he was “100%” planning to release a controversial, classified GOP memo alleging bias at the FBI and Justice Department. As he departed the House floor after delivering his State of the Union address, C-SPAN cameras captured Representative Jeff Duncan, a South Carolina Republican, asking Trump to “release the memo.” Republican lawmakers say the four-page document raises questions about the validity of the investigation into possible collusion between Trump’s campaign and Russia, now led by Special Counsel Robert Mueller. “Oh yeah, don’t worry, 100%,” Trump replied, waving dismissively. “Can you imagine that? You’d be too angry.”

Republicans in the House moved to release the memo, authored by House Intelligence Chairman Devin Nunes, in a party-line vote on Monday. The move has been opposed by Democrats, who argue the memo gives an inaccurate portrayal of appropriate actions undertaken by law enforcement, and by the Justice Department, which has said it should remain classified. Releasing the memo has become a cause for conservative congressional Republicans, who say the FBI and the Justice Department pursued the investigation of possible Russian ties to the Trump presidential campaign under false pretenses. Trump has as many as five days to review the document for national security concerns, and White House officials insisted earlier Tuesday he hadn’t yet seen the document.

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Talk about your American Dream: “..households are living paycheck-to-paycheck even if those paychecks are reasonably large and even if life is comfortable at the moment.”

• Saving Rate Drops to 12-Year Low As 50% of Americans Don’t Have Savings (WS)

In terms of dollars, personal saving dropped to a Seasonally Adjusted Annual Rate of $351.6 billion, meaning that at this rate in December, personal savings for the whole year would amount to $351.6 billion. This is down from the range between $600 billion and $860 billion since the end of the Financial Crisis. But who is – or was – piling up these savings? Numerous surveys provide an answer, with variations only around the margins. For example, the Federal Reserve found in its study of US households: Only 48% of adults have enough savings to cover three months of expenses if they lost their income. An additional 22% could get through the three-month period by using a broader set of resources, including borrowing from friends and selling assets. But 30% would not be able to manage a three-month financial disruption. 44% of adults don’t have enough savings to cover a $400 emergency and would have to borrow or sell something to make ends meet.

Folks who had experienced hardship were more likely to resort to “an alternative financial service” such as a tax refund anticipation loan, pawn shop loan, payday loan, auto title loan, or paycheck advance, which are all very expensive. Similarly, Bankrate found that only 39% of Americans said they’d have enough savings to be able to cover a $1,000 emergency expense. They rest would have to borrow, sell, cut back on spending, or not deal with the emergency expense. All these surveys say the same thing: about half of Americans have little or no savings though many have access to some form of credit, including credit cards, pawn shops, payday lenders, or relatives. So what does it mean when the “saving rate” declines?

Many households spend more than they make. For them, the personal saving rate is a negative number. This negative personal saving rate translates into borrowing, which explains the 5.7% year-over-year surge in credit card debt, and the 5.5% surge in overall consumer credit. It boils down to this: most of the positive saving rate, with savings actually increasing, takes place at the top echelon of the economy – at the top 40%, if you will – where households are flush with cash and assets and where the saving rate is very large. But the growth in borrowing for consumption items (the negative saving rate) takes place mostly at the bottom 60%, where households are living paycheck-to-paycheck even if those paychecks are reasonably large and even if life is comfortable at the moment.

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Peculiar: $2.3 billion ‘worth’ of a dollar-pegged ‘currency’, backed by nothing much in proof.

• U.S. Regulators Subpoena Crypto Exchange Bitfinex, Tether (BBG)

U.S. regulators are scrutinizing one of the world’s largest cryptocurrency exchanges as questions mount over a digital token linked to its backers. The U.S. Commodity Futures Trading Commission sent subpoenas on Dec. 6 to virtual-currency venue Bitfinex and Tether, a company that issues a widely traded coin and claims it’s pegged to the dollar, according to a person familiar with the matter, who asked not to be identified discussing private information. The firms share the same chief executive officer. Tether’s coins have become a popular substitute for dollars on cryptocurrency exchanges worldwide, with about $2.3 billion of the tokens outstanding as of Tuesday.

While Tether has said all of its coins are backed by U.S. dollars held in reserve, the company has yet to provide conclusive evidence of its holdings to the public or have its accounts audited. Skeptics have questioned whether the money is really there. “We routinely receive legal process from law enforcement agents and regulators conducting investigations,” Bitfinex and Tether said Tuesday in an emailed statement. “It is our policy not to comment on any such requests.” Bitcoin, the biggest cryptocurrency by market value, tumbled 10% on Tuesday. It fell another 3.2% to $9,766.41 as of 9:19 a.m. in Hong Kong, according to composite pricing on Bloomberg. The virtual currency hasn’t closed below $10,000 since November.

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Who’s aiding Spain in keeping its problems hidden? 30,000 complaints in 9 months, and the ECB is silent?!

• Customer Lawsuits Pummel Spanish Banks (DQ)

Following a succession of consumer-friendly rulings, bank customers in Spain are increasingly taking their banks to court. And many of them are winning. Last year an unprecedented wave of litigation against banks forced the Ministry of Justice to set up dozens of courts specialized in mortgage matters to prevent the collapse of the rest of the national judicial system. The Bank of Spain, according to its own figures, received 29,957 complaints from financial consumers between January and September 2017 — already double that of the previous year and by far the highest number of complaints registered since 2013, a record year when investors and customers were desperately trying to claw back the money they’d lost in the preferred shares that issuing banks had pushed on their own customers as savings products.

In 2017, eight out of 10 complaints related to one key product: mortgages, and in particular the so-called “floor clauses” contained within them. These floor clauses set a minimum interest rate — typically of between 3% and 4.5% — for variable-rate mortgages, even if the Euribor dropped far below that figure. This, in and of itself, was not illegal. The problem is that most banks failed to properly inform their customers that the mortgage contract included such a clause. Those that did, often told their customers that the clause was an extreme precautionary measure and would almost certainly never be activated. After all, they argued, what are the chances of the Euribor ever dropping below 3.5% for any length of time? At the time (early 2009), Europe’s benchmark rate was hovering around the 5% mark.

Within a year it had crashed below 1% and has been languishing at or below zero ever since. As a result, most Spanish banks were able to enjoy all the benefits of virtually free money while avoiding one of the biggest drawbacks: having to offer customers dirt-cheap interest rates on their variable-rate mortgages. But all that came to a crashing halt in May 2013 when Spain’s Supreme Court ruled that the floor clauses were abusive and that the banks must reimburse all the funds they’d overcharged their mortgage customers — but only from the date of the ruling! Then, on December 21, 2016, the European Court of Justice (ECJ) delivered a further hammer blow when it acknowledged the right of homeowners affected by “floor clauses” to be reimbursed money dating back to when the mortgage contract was first signed. Since the ECJ ruling, law firms are now so confident of winning floor-clause cases that they’re even offering no win, no-fee deals.

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US and UK suffer from the exact same problem.

• Britons Ever More Deeply Divided Over Brexit (R.)

The social divide revealed by Britain’s 2016 vote to leave the European Union is not only here to stay but deepening, according to academic research published on Wednesday. Think tank The UK in a Changing Europe said Britons were unlikely to change their minds about leaving the EU, despite the political and economic uncertainty it has brought, because attitudes are becoming more entrenched. “The (Brexit) referendum highlighted fundamental divisions in British society and superimposed a leave-remain distinction over them. This has the potential to profoundly disrupt our politics in the years to come,” said Anand Menon, the think tank’s director.

Britain is negotiating a deal with the EU which will shape future trade relations, breaking with the bloc after four decades, but the process is complicated by the divisions within parties, society and the government itself. Menon said the research, based on a series of polls over the 18-month period since Britain voted to leave the European Union, showed 35% of people self-identify as “Leavers” and 40% as “Remainers”. Research also found that both sides had a tendency to interpret and recall information in a way that confirmed their pre-existing beliefs which also added to the deepening of the impact of the vote. The differences showed fragmentation was more determined by age groups and location than by economic class.

Polls have shown increasing support for a second vote on whether or not to leave the European Union once the terms of departure are known, but such a vote would not necessarily provide a different result, a poll by ICM for the Guardian newspaper indicated last week. The report also showed that age was a better pointer to how Britons voted than employment. Around 73% of 18 to 24-year-olds voted to stay in the EU, but turnout among that group was lower than among older voters. “British Election Study surveys have suggested that, in order to have overturned the result, a startling 97% of under-45s would have had to make it to the ballot box, as opposed to the 65% who actually voted,” the report said.

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How China hides debt through swaps. As US and EU have done for ages now.

• The GDP of Bridges to Nowhere (Michael Pettis)

In most economies, GDP growth is a measure of economic output generated by the performance of the underlying economy. In China, however, Beijing sets annual GDP growth targets it expects to meet. Turning GDP growth into an economic input, rather than an output, radically changes its meaning and interpretation. On January 18, 2018, China’s National Bureau of Statistics announced that the country’s GDP grew by 6.9% in 2017. A day earlier, the People’s Bank of China (PBoC) announced that total social financing (TSF) in 2017 had increased to 19.44 trillion renminbi.

[..] I was recently part of a discussion on a listserv that brings together Chinese and foreign experts to exchange views on China-related topics. What set off this discussion was a claim that the Chinese economy began to take deleveraging seriously in 2017. Everyone agreed that debt in China is still growing far too quickly relative to the country’s debt-servicing capacity, but the pace of credit growth seems to have declined in 2017, even as real GDP growth held steady and, more importantly, nominal GDP growth increased. I was far more skeptical than some others about how to interpret this data. It is not just the quality of data collection that worries me, but, more importantly, the prevalence in China of systemic biases in the way the data is collected. Not all debt is included in TSF figures. The table above, for example, indicates a fall in TSF in 2015, but this did not occur because China’s outstanding credit declined.

[..] in 2015 there was a series of debt transactions (mainly provincial bond swaps aimed at reducing debt-servicing costs and extending maturities) that extinguished debt that had been included in the TSF category and replaced it with debt not included in TSF. The numbers are large. According to the China Daily, there were 3.2 trillion renminbi worth of bond swaps in 2015, plus an additional 600 billion renminbi of new bonds issued. If we adjust TSF by adding these back, rather than indicate a decline of 6.4%, we would have recorded an increase of 15.7%. [..] The point is that the deceleration in credit growth implied by TSF data might indeed reflect the beginning of Chinese deleveraging, but it could also reflect the surge in regulatory concern. In the latter case, this would mean that China has experienced not the beginnings of deleveraging, but rather a continuation of the trans-leveraging observers have seen before.

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Debt Rattle January 30 2018

Jan 302018
 
 January 30, 2018  Posted by at 11:08 am Finance Tagged with: , , , , , , , , , ,  6 Responses »


Horacio Coppola Obelisco, Buenos Aires 1936

 

• House Intel Votes To Make “Shocking” FISA Memo Public (ZH)
• Trump Administration Holds Off On New Russia Sanctions (R.)
• Measure What Is Measurable (John Hussman)
• Global Bond Yields Spike as Inflation Fears Rise (Street)
• US Mortgage Rates Jump To The Highest Point In 4 Years (CNBC)
• Stormy Weather (Jim Kunstler)
• Leaked Brexit Report Shows Damage To UK Growth (G.)
• Janet Yellen Sets Interest Rates One Last Time. How Will History Rate Her? (G.)
• On The Death of Robert Parry (CJ)
• Refugee Relocations From Italy And Greece Drawing To A Close (DW)

 

 

I like the suggestion that Trump can read the memo out loiud tonoght in SOTU. Though it’s been discussed so much already, it can only disappoint probably.

• House Intel Votes To Make “Shocking” FISA Memo Public (ZH)

In a highly anticipated decision, on Monday evening the House Intelligence Committee voted to make public the memo alleging what some Republicans say are “shocking” surveillance abuses at the Department of Justice regarding the Trump presidential campaign. In immediate response to the vote, the Committee’s top democrat Adam Schiff said that “we’ve crossed a deeply regrettable line”, adding that the “committee voted to put the president’s interest above the interest of the country.” The decision [ends] weeks of speculation over whether the memo, which was drafted by staff for committee chairman Devin Nunes (R- Calif) would be made public. At the same time, it intensifies the dispute over what Democrats say is an all-out assault by Republicans to undermine special counsel Robert Mueller’s probe into Russian interference in the 2016 election.

Now the fate of the 4-page FISA memo is in the hands of Donald Trump: as we discussed earlier, the document will not be immediately released as under the House rule Republicans used to override the classification of the four-page memo, President Trump now has five days to review and reject its publication. But, as per Bloomberg’s reporting earlier, the White House has signaled support for the document’s release and is widely expected to defy the DOJ in allowing the publication to go forward. The DOJ has opposed the release of the document, reportedly infuriating President Trump. While Nunes has described the memo as “facts,” Democrats have slammed it as a collection of misleading talking points they are unable to correct without exposing the highly classified information underpinning the document.

As Bloomberg disclosed earlier on Monday, releasing the memo without allowing them to review it on those grounds, Assistant Attorney General Stephen Boyd wrote to Nunes, would be “extraordinarily reckless.” Of course, the reason for the DOJ – and the Democrats’ fury – is well-known: Republicans who have read the memo have hinted heavily that it contains information that could unravel the entire Mueller investigation, long described by the president as a “witch hunt.” In an amusing twist, now that transparency appears to be the watchword, the Republican controlled House Intel Committee also plans to release the transcript of the business meeting dealing with releasing the FISA memo.

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Russia has pledged to read the list ‘without letting emotion get in the way’.

• Trump Administration Holds Off On New Russia Sanctions (R.)

The Trump administration said on Monday it would not immediately impose additional sanctions on Russia, despite a new law designed to punish Moscow’s alleged meddling in the 2016 U.S. election, insisting the measure was already hitting Russian companies. “Today, we have informed Congress that this legislation and its implementation are deterring Russian defense sales,” State Department spokeswoman Heather Nauert said in a statement. “Since the enactment of the … legislation, we estimate that foreign governments have abandoned planned or announced purchases of several billion dollars in Russian defense acquisitions.” Seeking to press President Donald Trump to clamp down on Russia, the U.S. Congress voted nearly unanimously last year to pass a law setting sweeping new sanctions on Moscow.

Trump, who wanted warmer ties with Moscow and had opposed the legislation as it worked its way through Congress, signed it reluctantly in August, just six months into his presidency. Under the measure, the administration faced a deadline on Monday to impose sanctions on anyone determined to conduct significant business with Russian defense and intelligence sectors, already sanctioned for their alleged role in the election. But citing long time frames associated with major defense deals, Nauert said it was better to wait to impose those sanctions. “From that perspective, if the law is working, sanctions on specific entities or individuals will not need to be imposed because the legislation is, in fact, serving as a deterrent,” she said in a statement.

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Next recession: Dow plunge by 2/3.

• Measure What Is Measurable (John Hussman)

[..] it’s true that when we examine pre-crash extremes, like 2000 and 2007, we’ll typically find that actual returns over the preceding 12-year period were higher than the returns that one would have expected on the basis of valuations 12 years earlier. No surprise there. The only way to get to breathtaking valuations is to experience a period of surprisingly strong returns. Those breathtaking valuations are then followed by dismal consequences. Likewise, when we examine secular lows like 1974 and 1982, we’ll find that actual returns over the preceding 12-year period fell short of the returns one would have expected on the basis of valuations 12 years earlier.

The chart below offers a reminder of what this looks like, in data since the 1920’s. Look at the “errors” in 1988, 1995, and 2006. Count forward 12 years, and you’ll find the major valuation peaks of 2000, 2007 and today that were responsible for the overshoot of actual returns. The 2000 and 2007 instances were both followed by losses of 50% or more in the S&P 500. Look at the “errors” in 1937, 1962, 1966, and 1970. Count forward 12 years, and you’ll find the market lows of 1949, 1974, 1978 and 1982 that were responsible for the undershoot of actual returns. Those market lows turned out to be the best buying opportunities of the post-war era. When market cycles move to extreme overvaluation or undervaluation, they become an exercise in borrowing or lending returns to the future, and then surrendering or receiving them back over the remaining half of the cycle.

Put simply, in my view, stock prices are rising not because Wall Street has thoughtfully quantified the effect of taxes, interest rates, corporate profits, or anything else. Instead, Wall Street is mesmerized by the self-reinforcing outcomes of its own speculation, relying on verbal arguments, optimistic projections lacking grounds in observable data, and enthusiastic assertions about cause-effect relationships that are accepted without the need for any evidence at all (much less decades of it).

Back to Galileo. Measure what is measurable, and make measurable what is not so. When we do this, come to understand the current speculative extreme as the tension between two observations that are not actually contradictory – just uncomfortable. One is that stock prices are indeed three times the level at which they are likely to end the current market cycle. The other is that there is no pressure for valuations to normalize over shorter segments of the cycle, as long as risk-seeking speculative psychology remains intact.

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It’s starting to feel as if we passed an inflection point.

• Global Bond Yields Spike as Inflation Fears Rise (Street)

Global government bond markets continued to sell-off Monday, taking U.S. Treasury yields to the highest level in four years amid renewed bets on faster inflation in the world’s biggest economy and hawkish comments on growth and inflation from central bank officials in Europe. The bond market moves have clipped early gains for stocks and raised the spectre of a correction in inflation assumptions as the global economy roars to life and oil and commodity prices continue to climb amid a surge in manufacturing activity. The selling was also accelerated, in part, by a Goldman Sachs research note which suggested that Wednesday’s meeting of the U.S. Federal Reserve, the last under the leadership of outgoing chairwoman Janet Yellen, could plant the early seeds for a March hike in benchmark borrowing costs.

“We expect the FOMC to issue a generally upbeat post-meeting statement that includes an upgrade to the balance of risks and a slightly hawkish rewording of the inflation assessment,” the note read, adding that public remarks since the December meeting “bolster the case for an upgrade, and by our count, at least half of the Committee has recently referenced upside risks to growth.” Benchmark 10-year U.S. Treasury yields were marked at 2.72% in early Monday trading, the highest since early 2014, while 2-year note yields were seen at 2.15%, the highest since 2008. Those gains followed Friday closing levels that showed the widest yield gap between so-called TIPS, or Treasury Inflation Protected Securities, and benchmark 10-year notes since Sept. 2014.

In Europe, five-year German bunds yields traded in positive territory for the first time since 2015 amid a solid assessment of the region’s growth prospects last week from ECB President Mario Draghi and comments over the weekend from Dutch central bank governor Klaas Knot that he saw “no reason whatsoever” to continue the Bank’s €2.55 trillion ($3.16 trillion) quantitative easing program beyond its September deadline. Both U.S. and European investors are bracing for faster inflation in the months ahead as global commodity prices – particularly crude oil – continue to rise. Brent crude futures for March delivery, the benchmark for prices around the world, were marked at $69.87 Monday, down from their Friday close of $70.52 but still some 28% higher from the same period last year, suggesting a big upside import into headline inflation readings over the first half of this year.

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Yields go up, then so do mortgage rates.

• US Mortgage Rates Jump To The Highest Point In 4 Years (CNBC)

A huge sell-off in the bond market is about to make buying a home more expensive. Mortgage rates, which loosely follow the yield on the 10-year Treasury, have been rising for the past few weeks, but are seeing their biggest move higher Monday. “Bottom line, rate sheets are going to be ugly this morning,” wrote Matthew Graham, chief operating officer of Mortgage News Daily. “Some lenders will be at 4.5% on their best-case-scenario 30-year fixed quotes.” That is the highest rate since 2014. The average rate on the popular 30-year fixed started the year right around 4% but then began to climb on positive news in the U.S. economy, solid company earnings reports and a shift in foreign central bank policies which appear to now be following the Federal Reserve’s tightening of monetary policy.

The rate was at 4.28% by the end of last week. “Apart from central banks, there’s a ton of bond market supply coming down the pike due to infrastructure and tax bill spending,” Graham said. That new supply will send yields and, consequently, mortgage rates higher. While mortgage rates are still historically low, they were even lower in the years following the financial crisis. That not only helped juice the sharp increase in home prices, but it has also given borrowers a new sense of normal. Both will hurt affordability this spring on several fronts. “Today is one more reason for Realtors and buyers to move up their spring schedule,” said Chris Kopec, a mortgage loan consultant at Chicago-based Lakeside Bank.

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Why investigate Trump, but not Hillary et al?

• Stormy Weather (Jim Kunstler)

It’s hard not to be impressed by the evidence in the public record that the FBI misbehaved pretty badly around the various election year events of 2016. And who, besides Rachel Maddow, Anderson Cooper, and Dean Baquet of The New York Times, can pretend to be impressed by the so far complete lack of evidence of Russian “meddling” to defeat Hillary Clinton? I must repeat: so far. This story has been playing for a year and a half now, and as the days go by, it seems more and more unlikely that Special Prosecutor Robert Mueller is sitting on any conclusive evidence. During this time, everything and anything has already leaked out of the FBI and its parent agency the Department of Justice, including embarrassing hard evidence of the FBI’s own procedural debauchery, and it’s hard to believe that Mr. Mueller’s office is anymore air-tight than the rest of the joint.

If an attorney from Mars came to Earth and followed the evidence already made public, he would probably suspect that the FBI and DOJ colluded with the Clinton Campaign and the Democratic Party to derail the Trump campaign train, and then engineer an “insurance policy” train wreck of his position in office. Also, in the process, to nullify any potential legal action against Clinton, including the matter of her email server, her actions with the DNC to subvert the Sanders primary campaign, the Steele dossier being used to activate a FISA warrant for surveillance of the Trump campaign, the arrant, long-running grift machine of the Clinton Foundation (in particular, the $150 million from Russian sources following the 2013 Uranium One deal, when she was Secretary of State), and the shady activities of Barack Obama’s inner circle around the post-election transition. There is obviously more there there than in the Resistance’s Russia folder.

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What Britain can quarrel about this week.

• Leaked Brexit Report Shows Damage To UK Growth (G.)

Brexit would leave the UK worse off under three possible scenarios: a comprehensive free trade deal, single market access and no deal at all, according to a leaked government analysis of the economic impact of leaving the EU. The document was meant to be shown confidentially to cabinet ministers this week but was leaked in an embarrassing development for Theresa May and David Davis, the Brexit secretary. It said national income would be 8% lower under a no deal scenario, around 5% lower with a free trade agreement with the EU and about 2% lower with a soft Brexit option of single market membership over a 15-year period. The government would not comment on leaked documents but sources stressed the analysis did not cover May’s preferred option of a bespoke deal amounting to a “deep and special partnership” with the EU.

The document suggested that chemicals, clothing, manufacturing, food and drink, and cars and retail would be the hardest hit and every UK region would also be affected negatively in all the modelled scenarios, with the north-east, the West Midlands and Northern Ireland facing the biggest falls in economic performance. It comes after Davis refused to release impact assessments covering 58 sectors of the economy when requested to by parliament, claiming they did not in fact exist. Remain supporters said the report, seen by BuzzFeed News, was concerning but in line with what they had feared.

[..] Eloise Todd, the chief executive of anti-Brexit organisation Best for Britain, added: “According to the government’s secret analysis, even the softest Brexit scenario will mean a 2% hit to growth. “Almost every community, region and sector of the economy included in the analysis would be negatively impacted. The case for or against Brexit should be about more than balance sheets, but it’s painfully clear that the numbers are a gloomy part of the story. And behind these numbers are thousands of jobs, businesses and homes that are at risk. “The government are calling this document embarrassing but it’s more than that. It is a colossal act of economic self harm, written down clearly, in black and white. We are reading about an economy facing the abyss.”

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After Janet, the flood.

• Janet Yellen Sets Interest Rates One Last Time. How Will History Rate Her? (G.)

Janet Yellen, the Federal Reserve chair, begins her final rate-setting meeting at the helm of the US central bank on Tuesday, before she is replaced by Donald Trump’s chosen successor, Jerome Powell. The first woman to lead the Fed arrived in February 2014 at a time when the money-printing machine of quantitative easing was whirring at full-tilt under her predecessor, Ben Bernanke. QE, which involved the Fed buying bonds from financial institutions, pumped billions of dollars into the US economy to keep it afloat after the financial crisis. Yellen leaves next month with a legacy as the Fed chair who began the long process of turning off the QE machine, and for raising interest rates for the first time in seven years in 2015.

Powell will have a tough act to follow, with the stock market currently sitting at a record high and as economic growth continues to strengthen and unemployment stands at the lowest level since 2000. No increase in interest rates is expected this month, although further hikes are forecast for later this year. James Knightley, senior economist at ING Bank, said: “She has followed up [Bernanke] with strong leadership and solid decision making that led to the robust economic performance we see today. Given all these successes, Jay Powell has been set a very tough bar to match.”

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Emotional by Caitlin Johnstone. We should have a piece that lists his topics through the years. And someone should pick up his legacy.

• On The Death of Robert Parry (CJ)

The legendary journalistic titan Robert Parry has died, and I still haven’t quite figured out how to live with that. I did not know Parry and never had any kind of interaction with him, but I can’t stop crying. This is an immense loss and it feels deeply personal, just as one of the countless individuals his work has profoundly impacted. I’ve often recommended Parry’s outlet Consortiumnews as the overall best source of anti-war, anti-establishment information in the English-speaking world, and I cite its content constantly in my own work. This just sucks, and I’m a mess, and this might just be me getting sloppy and emotional for a few paragraphs, but this is all I can really be right now.

In a beautiful tribute to his father, Nat Parry describes a man who was driven not by self-interest, nor even ultimately by any ideology or conceptual values system, but by a deeply held commitment to humanity born out of concern for the future of our species. Parry’s journalistic integrity and ferocious dedication to the truth at all costs appear to have been a byproduct of that fundamental desire for humanity to survive and thrive, and an inability to be comfortable with our horrifying flirtation with extinction. “But besides this deeply held commitment to independent journalism, it should also be recalled that, ultimately, Bob was motivated by a concern over the future of life on Earth,” writes the younger Parry. “As someone who grew up at the height of the Cold War, he understood the dangers of allowing tensions and hysteria to spiral out of control, especially in a world such as ours with enough nuclear weapons to wipe out all life on the planet many times over.”

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Brussels, Paris and Berlin only care when it suits their careers.

• Refugee Relocations From Italy And Greece Drawing To A Close (DW)

Germany’s Interior Ministry said on Monday that it will only resettle a small number of migrants from Italy and Greece in the coming weeks, as the EU’s migrant relocation program draws to a close. An Interior Ministry spokesperson told DW that far fewer people had fulfilled the necessary criteria for relocation than first expected. “There are now virtually no more asylum seekers in Greece who could be considered for resettlement,” according to the Ministry. To qualify, applicants had to be from a country where the chances of asylum are at least 75%. Last month, some 500 migrants were still waiting to be relocated from Italy to Germany, while in Greece the number less than 40. “The relocation scheme ended in September 2017, meaning all applicants arriving after that date will no longer be eligible for resettlement,” Annegret Korff, a speaker for the Interior Ministry, said.

“Germany largely completed all outstanding relocations by the end of 2017. In the coming weeks, Germany will only carry out the odd resettlement case that was left outstanding from last year.” The program to relocate migrants landing in Greece and Italy was launched by the European Union in the wake of the 2015 migrant crisis. Initially, EU member states agree to relocate some 160,000 refugees between them from the bloc’s two main points of entry by September 2017. The number was revised to just under 100,000 after officials found that fewer people were eligible under the scheme that first expected. Although the temporary progam has since passed its deadline, the final few migrants that qualify for resettlement are still awaiting asylum.

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We’ve Let The Clowns Come Way Too Far

Jan 212015
 
 January 21, 2015  Posted by at 11:16 pm Finance Tagged with: , , , , , , , ,  17 Responses »


Harris&Ewing Goodyear Blimp at Washington Air Post ,DC 1938

In yesterday’s State of the Union, Obama said The ‘Shadow Of Crisis Has Passed’, and the one and the only thing I thought was: ‘Good, so now we can tackle the crisis itself?!’. If speeches like the SOTU last night, and the reactions to it, make anything clear, it’s that the PR guys won the fight against critical thinking. Sure, there are people for whom that shadow has passed, but a president is supposed to be there for all Americans, not just for those who finance his campaigns and those of his successors.

And for most Americans, the shadow hasn’t passed at all, and the crisis certainly hasn’t. And hollow promises to help the middle class are not going to change anything about that. It’s an elite game, and all others are left to fend for themselves. For now that remains hidden behind the veil of over 50% of Americans receiving some kind of government benefit, but that won’t last. We may have some idea of how much richer the rich are getting, and even that is a stretch, but we have much less idea of how much the poor got poorer.

And the President, of all Americans, won’t tell us, he’d rather hail his ‘achievements’ as prepared and blown out of all proportions by his spin team. His political ‘adversaries’, who play their role of ‘hating’ him only halfway convincingly, won’t call him on the spin, because they have nothing to gain from trying to blow up the newfangled American Dream.

Their message looking forward to the 2016 elections is that they would do even better, but that doesn’t sound credible with the 5% GDP growth and 5.2% unemployment numbers the White House pulls out of its top hat. They’re just as dependent on spin as Obama is, and he trumped them on it. What are they going to do? Promise 10% GDP growth?

The GOP will look to drastically cut those benefits, and they know full well that that would cut growth numbers, not raise them. 5% growth is already so far out of left field that Obama’s spin doctors have the other side cornered on US economy. They have on international politics, too.

The White House’s ludicrous stance on Russia’s involvement in Ukraine, ludicrous because none of its accusations have ever been proven over an entire year, and the sanctions that were instated because of the hollow accusations, are a hard act to follow even for John McCain and his dementing octogenarian rabble rousers who crave nothing more than for that final grand scale deadly battle in their lifetime. Can we make in nuclear plese? After them the flood.

All they could do to better Obama from here is send in American boots on the ground in the Donbass, and they know that would be the least popular decision in many decades. But domestically, economically, and internationally, it’s back to the drawing board for the Grand Old Elephants all the time, they’re always a step behind. Must be frustrating. The Obama people have played them as much as they have played the American people.

Who, as should be obvious by now, have nothing to expect from either side, since both owe allegiance not to the flag or the Founding Fathers, but to the rich getting richer who fund them, without whom they’d have to give up their power plays and -dreams. Something a certain kind of people will resist at any price. The kind that floats to the top of this kind of cesspool.

Allow money into politics and the former will end up owning the latter, no exceptions. Money won’t support candidates with a conscience, only those who’ll do anything to advance their careers, who are as pliable as and spineless as a stick of wet gum, and those are all that will be left. If anything typifies American politics, it’s moral bankruptcy. One dollar one vote. 100 million dollars, 100 million votes. And then they insist on calling that democracy, a concept promoted by the media purchased the same way the politicians are.

All you need to do is get people to believe whatever it is you got for sale. And 99.9% of people are easily fooled. That’s how you define democracy in 2015: how many people can you fool? Which is the most convincing sleight of hand?

The Europeans are well down that same road. Mario Draghi is set to announce over $1 trillion in QE tomorrow, and none of it will ever reach the alleged target, the real economy. He set up his QE in a ‘proportional’ way, meaning most of that trillion will go to Germany and France, not the Greeks and Italians who need it most.

Draghi will buy government bonds, but that doesn’t help Europe’s businesses. And not just because they are far more dependent on bank loans than American companies are, who issue more bonds, but because demand, and spending, is way down. That’s what it means that Europe is in deflation. It’s not falling prices, it’s that people don’t spend, and they certainly don’t borrow.

Draghi is engaging in the classic central banker’s ‘pushing on a string’, and Goldman’s former banker and present day acolyte knows it. He’s created a situation in which another $1 trillion looks acceptable, necessary even, to the majority of the eurozone politicians. Who mostly are clueless about the effects of such expenditures. But who look at the US and think it must have worked over there; who fall for Obama’s spin doctor narratives as much as the America people do.

Draghi’s $1 trillion has long been priced in, it won’t do anything for EU economies but gut them even further, and it may be completely irrelevant as soon as this Sunday when Greece may well elect a government that has vouched to blow up the deals the Troika made with the technocrats the EU itself installed in Athens.

Not a pretty picture, is it, either in Washington or in Brussels?! Well, I can guarantee you it’ll get a lot worse before it gets any better. We’ve let the clowns come too far. Way too far.