Jul 072019
 
 July 7, 2019  Posted by at 9:12 am Finance Tagged with: , , , , , , , , , , ,


Pablo Picasso Guernica [Study] 1937

 

Trump Administration Is ‘Inept And Insecure’ – UK Ambassador (BBC)
Trump Couldn’t Ignore Contradictions of His Foreign Policy Any Longer (Atl.)
China Looks At Britain And Sees Only Weakness And Hypocrisy (O.)
Deutsche To Fire 20,000, Bad Bank Soars To €80BN, 5x DB’s Market Cap (ZH)
Iran To Lift Uranium Enrichment To 5%, Above Level In 2015 Deal |(R.)
Macron Warns Rouhani Of Consequences If Nuclear Deal Weakened (R.)
Bought Politicians (Craig Murray)
China Station Next Target For Hong Kong Protesters (AFP)
UN Chief Bachelet’s Venezuela Report Follows US Regime Change Script (GZ)
Second Migrant Rescue Boat Defies Salvini And Docks In Italy (AFP)
Sea-Watch Captain To Sue Italian Minister Salvini For Defamation (ToM)
Greeks Vote In Snap General Election (BBC)

 

 

This guy sends secret notes calling the US government ‘inept’, to his own government which is what exactly?

Does he do this because he knows they will love to forget their own incompetence?

And do I detect a sense of regret that Trump was “never fully on board” with the Iran bombings?

Trump Administration Is ‘Inept And Insecure’ – UK Ambassador (BBC)

The Trump administration has been labelled “inept”, insecure and incompetent in leaked emails from the UK ambassador to Washington. Sir Kim Darroch said that the White House was “uniquely dysfunctional” and “divided” under Donald Trump. But he also warned that the US president should not be written off. The Foreign Office said the leak of the memos to the Mail on Sunday was “mischievous” but did not deny their accuracy. The White House has not yet responded to the revelation of the contents of the memos, but it could test the so-called “special relationship” between the US and UK.

In the messages, Sir Kim said: “We don’t really believe this administration is going to become substantially more normal; less dysfunctional; less unpredictable; less faction-riven; less diplomatically clumsy and inept.” He questioned whether this White House “will ever look competent”. Although Sir Kim said Trump was “dazzled” by his state visit to the UK in June, the ambassador warns that his administration will remain self-interested, adding: “This is still the land of America First”.

Differences between the US and the UK on climate change, media freedoms and the death penalty might come to the fore as the countries seek to improve trading relations after Brexit, the memos said. To get through to the president, “you need to make your points simple, even blunt”, he said. In a message sent last month, Sir Kim branded US policy on Iran as “incoherent, chaotic”. Mr Trump’s publicly stated reason for calling off an airstrike against Tehran with 10 minutes to go – that it would cause 150 casualties – “doesn’t stand up”, Sir Kim said. Instead, he suggested the president was “never fully on board” and did not want to reverse his campaign promise not to involve the US in foreign conflicts.

Read more …

Everyone wants Bolton to stay in Outer Mongolia.

Trump Couldn’t Ignore Contradictions of His Foreign Policy Any Longer (Atl.)

As during the previous twist in the narrative, Trump now finds himself with a national-security team out of sync with his preferences. Changes are inevitable. Pompeo will likely survive. He is nothing if not adaptable. After the Iran decision, he and Vice President Mike Pence let it be known that although they supported military action, they were equally enthusiastic about the president’s U-turn. It’s hard to see how Bolton can stay. Trump has long known that Bolton wants war more than he does. He sidelined him on North Korea and overruled him on Iran. For his part, Bolton has privately attacked Pompeo, long a Trump favorite, as falling captive to the State Department bureaucracy and has predicted that the North Korea policy will fail.

Bolton has given an unusually large number of interviews to reporters and has been rewarded with positive profiles lauding his influence and bureaucratic prowess. Those of us who predicted that he would cling to the post of national security adviser, as it would be the last job he’d ever get, may have been wrong. In fact, Bolton looks and sounds as if he is preparing to exit on his own terms. Better that than being sent on a never-ending tour of the world’s most obscure places. For Bolton, leaving because he’s too tough for Trump is the perfect way to save face. Otherwise, he may be remembered as the man who presided over one of the weakest national-security teams in modern American history and someone whose myopic obsessions—such as international treaties and communism in Venezuela—meant the United States lost precious time in preparing for the national-security challenges of the future.

Who will replace Bolton is unclear. The best-case scenario would be Biegun, the North Korea envoy. He was rumored to be the runner-up to Bolton for the post in 2018. (Mattis and Kelly pushed for him, although at that point he had not spent time with Trump. Now he has.) Trump may see him as the man to oversee his various negotiations, as he has on North Korea. But will Trump go for a mainstream figure who would not be out of place in a traditional Republican presidency?

If the past is prelude, Trump may turn instead to his favorite source of information, Fox News, just as he did for Bolton. One of Tucker Carlson’s frequent guests on his show is a retired Army colonel by the name of Douglas Macgregor. Macgregor served in the first Gulf War and appears to be ideologically aligned with Carlson, favoring retrenchment from the Middle East and good relations with authoritarian states. His appointment would be treated as a calamity by the Republican foreign-policy establishment—which is one reason it may appeal to the president.

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The Chinese have not forgotten British atrocities, even if the Brits have.

The UK looks at the US and sees ineptness, while China looks at the UK and sees…

China Looks At Britain And Sees Only Weakness And Hypocrisy (O.)

It’s not all China’s fault. Deep-rooted anger at Britain has its origins in events largely forgotten in London but not in Beijing. It is true, as China says, that postwar colonial Britain showed scant regard for Hong Kong residents’ rights. This indifference was consistent with earlier humiliations heaped on the ruling Qing dynasty by Victorian imperialists – the cause of China’s “lost century”, concluding in 1945. The first Anglo-Chinese opium war, from 1839-42, was supposedly a response to Chinese insults to Britain’s national honour. In truth it was mostly about money and power, about imposing free trade, and about securing a lucrative market for opium exports from British India, regardless of the human cost.

This destabilising intervention opened the gates to other foreign invaders and to decades of revolts, such as the Taiping rebellion, when up to 100 million people may have died. It also foreshadowed an infamous act of cultural vandalism, the burning and looting by British and French forces of the emperor’s wondrous Summer Palace in Beijing in 1860. Its Chinese name was Yuanmingyuan – “garden of perfect brightness”. And it was utterly destroyed. All Chinese schoolchildren are taught this. Hunt deplored Beijing’s trashing of the 1984 Sino-British joint declaration, calling it an affront to the international rules-based order from which China benefits. But such righteous outrage comes awkwardly from a country that waged war in Iraq without legal authority and stays on friendly terms with murderers in Saudi Arabia.

It ignores the lawless history of the pre-1914 “unequal treaties”. Ironically, these old injustices were instrumental in shaping the Chinese communists’ 20th-century anti-imperialist, nationalist ideology – and the party’s insistence on regaining sovereignty over “lost” territories such as Hong Kong, Macau and, prospectively, Taiwan. As was often the case during its empire-building days, Britain sowed the seeds of its ultimate displacement. China’s disdain, bordering on contempt, for Britain’s warnings stems not only from London’s past hypocrisy and historical amnesia, but also from a keen assessment of its current, palpable weakness. Given the gaping power imbalance, Hunt’s threat of unspecified “severe consequences” is all but meaningless.

Read more …

Lagarde’s main job at the ECB: keep Deutsche Bank from collapsing. is that what she was hired for?

Deutsche To Fire 20,000, Bad Bank Soars To €80BN, 5x DB’s Market Cap (ZH)

One month ago, Jeff Gundlach – in his latest DoubleLine investor call – cracked jokes that Deutsche Bank’s imploding stock, which has been hitting fresh all time lows virtually every day, had “major support” at €0. Once again, he was on to something because just a few days later, the FT first reported that the bank which was this close to nationalization in 2016, and failed to consummate a merger with that “other” German bank, Commerzbank, was preparing to roll out Plan Z: amid a deep overhaul of its trading operations (read: mass terminations), the biggest German lender was set to roll out a “bad bank” holding some €50 billion in legacy toxic derivative assets, a plan that was quite popular in the depths of the global financial crisis.

As we noted at the time, it would hardly come as a surprise that the German bank best known for housing €43.5 trillion in gross derivatives notional (something we first pointed out way back in 2013) would stuff its “bad bank”, known internally also as “the non-core asset unit”, with – drumroll – long-dated derivatives. More to the point, we said that while this “bad bank” plan was commendable – after all admitting you have a problem is the first step toward recovery – it would fall far short of what is necessary to be ring-fenced from DB’s legacy balance sheet.

Today, Bloomberg confirmed as much when it reported that just two weeks after the original, €50 billion bad bank plan was floated, the German bad bank has already grown by 60%, with about €75 billion “and maybe as much as 80 billion euros of risk-weighted assets will form the basis of bad bank”, a Bloomberg source said. At the higher number, that’s the equivalent of about a quarter of Deutsche’s total balance sheet; it is also more than 5 times the German largest bank’s market cap, suggesting that absent this critical restructuring shape, Europe’s largest bank by assets is now effectively insolvent.

There is one final problem: in the summer of 2016, just a month before fears about the viability of DB sent its stock careening lower and prompting Angela Merkel to discuss whether or not DB will be nationalized, the IMF found that Deutsche Bank is “the bank that poses the greatest risk to the global financial system”: Network analysis suggests a higher degree of outward spillovers from the German banking sector than inward spillovers. In particular, Germany, France, the U.K. and the U.S. have the highest degree of outward spillovers as measured by the average percentage of capital loss of other banking systems due to banking sector shock in the source country. Here is the IMF’s chart showing the key linkages of the world’s riskiest bank:

Read more …

The West needs to cooperate with Russia and China on this. There is no other way.

Iran To Lift Uranium Enrichment To 5%, Above Level In 2015 Deal |(R.)

Iran on Sunday will announce an increase in uranium enrichment to 5%, a concentration above the limit set by its 2015 nuclear deal, an Iranian official told Reuters, in a move signaling a deepening challenge to escalating U.S. sanctions pressure. The declaration comes at a time of sharply increased U.S.-Iranian confrontation, a year after Washington quit the pact and reimposed sanctions that had been lifted under the accord in exchange for Tehran curbing its nuclear work. “The main announcement tomorrow will be the increase of the level of enrichment to 5% percent from 3.67% that we agreed under the deal,” the official said on Saturday on condition of anonymity.


In a sign of heightening Western concern, French President Emmanuel Macron said he and Iran’s President Hassan Rouhani had agreed to seek conditions for a resumption of dialogue on the Iranian nuclear question by July 15. Macron’s office added that he would keep on talking with Iranian authorities and other involved parties to “engage in a de-escalation of tensions related to Iranian nuclear issue.” The deal is aimed at extending the time Iran would need to produce a nuclear bomb, if it chose to, to a year from roughly 2-3 months. Iran says its nuclear program is only for peaceful purposes, such as power generation, and not to make bombs.

Read more …

And Iran says France should be much more vocal in its defense of Iran and the nuclear deal.

Macron Warns Rouhani Of Consequences If Nuclear Deal Weakened (R.)

French President Emmanuel Macron told his Iranian counterpart on Saturday that he was deeply concerned by any further weakening of the 2015 nuclear deal and warned that consequences would inevitably follow any such move. Macron spoke to Iranian President Hassan Rouhani a day before Iran is set to increase uranium enrichment purity above the limit set by Iran’s deal with world powers. “The president recalled his deep concern in the face of the risk of a new weakening of the 2015 nuclear accord, and the consequences that would necessarily follow,” a statement from the French presidency said. It was unclear exactly what consequences the statement was referring to.


European diplomats have said that further breaches of the accord could see the European parties to the deal – France, Britain and Germany – trigger a dispute resolution mechanism within the accord that could eventually lead to the reimposition of United Nations sanctions. Iran’s expected announcement comes at a time of sharply increased U.S.-Iranian confrontation, a year after Washington quit the pact and reimposed sanctions that had been lifted under the accord in exchange for Tehran’s curbing its nuclear work. The Iranians have demanded that the Europeans do more to save the deal by ensuring Iran gains economic benefits, notably badly needed oil revenue, which the United States has in particular targeted.

Read more …

Power for sale.

Bought Politicians (Craig Murray)

Between just 28 May and 10 June Boris Johnson received £235,500 in “private” donations, to himself personally, as he prepares to become the UK’s unelected Prime Minister. The blatant corruption of the UK’s political system is part of the reason for popular alienation from the ruling classes. It was Blair who elevated British politics to US levels of shamelessness in the matter of politicians’ self enrichment, and Johnson looks set to follow the Blair example. While some may pretend to do so, I do not accept that there is anybody who is naive enough genuinely to believe that such donations do not influence politicians’ policy decisions. Straight donations aside, the slightly disguised corruption of our political system should also be taken into account.

The banks put politicians in their pockets not through direct payments, but through massive, often six figure, fees they pay them for “speaking at dinners”. That is how Hillary Clinton garnered much of her Wall Street funding. In the case of Boris Johnson, it is interesting that in the House of Commons Register of Members’ Interests, he frequently lists the name of the speaking agency who paid him, but not who the client was. Another way to pay less obvious bribes – and one particularly pursued by New Labour – was the book deal, where publishers pay massive six figure advances to politicians which are, routinely, up to ten times the actual royalties earned for which they are an “advance”.

This only makes sense when you realise that every single one of the major publishers is owned by a much bigger multinational – for example until recently Murdoch owned HarperCollins. James Reuben, who gave two donations totaling £50,000 to Johnson, is the scion of the UK’s second wealthiest family, worth £18 billion. The Reubens made their money, like Roman Abramovich and Alisher Usmanov, in the pillaging of Russia’s massive metal producing assets, which were physically seized by gangsters, in the chaotic US organised Yeltsin privatisation process. The entire basis of their vast fortune was the exploitation of assets effectively stolen from the Russian state and people.

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Xi is itching to get involved.

China Station Next Target For Hong Kong Protesters (AFP)

Anti-government protesters in Hong Kong plan to rally later Sunday outside a controversial station where high-speed trains depart for the Chinese mainland as they try to keep up pressure on the city’s pro-Beijing leaders. The rally is the first major protest planned since last Monday’s unprecedented storming of parliament by largely young, masked protesters — a move which plunged the international financial hub further into crisis. Hong Kong has been rocked by a month of huge peaceful protests as well as a series of separate violent confrontations with police, sparked by a law that would have allowed extraditions to mainland China.


Recently opened multi-billion-dollar station that links Hong Kong to China’s high-speed rail network (AFP Photo/ANTHONY WALLACE)

The bill has since been postponed in response to the intense backlash but that has done little to quell public anger, which has evolved into a wider movement calling for democratic reforms and a halt to sliding freedoms in the semi-autonomous city. Protesters are demanding the bill be scrapped entirely, an independent inquiry into police use of tear gas and rubber bullets, amnesty for those arrested, and for the city’s unelected leader Carrie Lam to step down. Beijing has thrown its full support behind Lam, calling on Hong Kong police to pursue anyone involved in the parliament storming and other clashes.

Read more …

Excellent by Anya Parampil.

UN Chief Bachelet’s Venezuela Report Follows US Regime Change Script (GZ)

When United Nations High Commissioner for Human Rights Michelle Bachelet traveled to Venezuela earlier this year, she met with an array of citizens who lost family members to right-wing violence in the country. [..] Bachelet made no mention of opposition violence in her report. Her failure to properly detail the plight of Venezuelans who have suffered at the hands of anti-government rioters was just one of many glaring omissions which has one of the top international legal experts to have served at the UN calling the high commissioner’s objectivity into question. Alfred de Zayas became the first UN rapporteur to visit Venezuela in 21 years, traveling to the country in 2017 to examine the social and economic impact of unilateral coercive measures applied by the US.

He determined US-led sanctions were largely to blame for the country’s hardship, accusing Washington of waging “economic warfare,” and comparing its harsh measures to “medieval sieges of towns.” De Zayas was no less scathing towards Bachelet’s report, slamming it as a politicized document that depended heavily on unfounded claims by activists dedicated to Maduro’s removal. “The new Bachelet report is methodologically flawed, as were indeed the earlier reports, relying overwhelmingly on unverified allegations by opposition politicians and advocates of regime change who are only interested in weaponizing human rights,” the former special rapporteur told The Grayzone.

[..] Bachelet’s dismissal of the destructive impact of sanctions on the Maduro government overlook years of sustained economic attack on the Venezuelan economy by the most powerful nation on earth. With the Obama administration’s move to declare Venezuela’s government a “national security threat” in March of 2015, Venezuela’s economy and its ability to restructure its debt have been under systematic attack.

Read more …

“A poll published in Italy’s Corriere della Sera newspaper on Saturday said 59% of Italians approved of Salvini’s closing ports to NGO vessels. ..”

The silence from Brussels is getting louder.

Second Migrant Rescue Boat Defies Salvini And Docks In Italy (AFP)

A charity rescue vessel brought 41 shipwrecked migrants into port in Lampedusa on Saturday, the second boat to defy far-right interior minister Matteo Salvini’s bid to close Italian ports to them. Mediterranea’s Italian-flagged Alex arrived in port where a strong police presence was waiting for them but everyone remained on board after spending two days with the rescued migrants and asylum-seekers on the sailboat. “In view of the intolerable hygiene conditions aboard, the Alex has declared a state of emergency and is sailing towards Lampedusa, the only possible safe port for landing,” Mediterranea said in a tweet earlier.

Salvini, who leads the Lega party and is also deputy prime minister, last month issued a decree that would bring fines of up to €50,000 (£45,000) for the captain, owner and operator of a vessel “entering Italian territorial waters without authorisation”. Salvini tweeted after the Alex docked that the charity workers were “jackals… will they go unpunished also?” “Law enforcement forces are ready to intervene… in a normal country there would be immediate arrests and the boat would be impounded,” Salvini said in another tweet. Authorities on Lampedusa last week seized another rescue ship belonging to German aid group Sea-Watch after it forced its way into port with dozens of rescued migrants on board and arrested its captain, Carola Rackete.

An Italian judge this week ordered her freed as she had been acting to save lives, a decision that sparked Salvini’s ire but may have encouraged the Alex crew. Two other investigations, on charges of helping people smugglers and resisting the authorities, are still under way after Rackete forced her way past Italian customs vessels. A third rescue ship, German charity Sea-Eye’s vessel Alan Kurdi, carrying 65 shipwrecked migrants rescued off Libya on Saturday, arrived and held its position in international waters off Lampedusa. [..] A poll published in Italy’s Corriere della Sera newspaper on Saturday said 59% of Italians approved of Salvini’s closing ports to NGO vessels.

Read more …

“Rackete has gone into hiding following numerous threats..”

Sea-Watch Captain To Sue Italian Minister Salvini For Defamation (ToM)

The captain of detained migrant rescue ship Sea-Watch 3, Carola Rackete, will sue Matteo Salvini for defamation after a tirade of insults from Italy’s far-right interior minister, her lawyer said Friday. “We have prepared the legal complaint against minister Salvini,” Alessandro Gamberini told Italian radio, saying “it’s not easy to make a complete list of all the insults Salvini has made these last weeks.” Salvini, who is also deputy prime minister and an admirer of US President Donald Trump, is an avid user of social media, which he also uses to insult people he disagrees with. Salvini “stirs the troubled waters of hate. A defamation lawsuit is a way to send a signal,” the lawyer said, prompting a swift and angry response from the Lega minister.

“She breaks laws and attacks Italian military vessels, and then she sues me,” the anti-migrant Salvini tweeted. “I’m not afraid of the Mafia, let alone a rich and spoiled communist!” Italian police last week arrested Rackete, 31, after she defied orders to stay away and forced her way into port on Italy’s southern Lampedusa island to disembark 40 rescued migrants who had been stuck at sea on her vessel for two weeks. An Italian judge this week ordered her freed as she had been acting to save lives, a decision which also sparked Salvini’s ire. Two other investigations, on charges of helping people smugglers and resisting the authorities are still underway after she forced her way past Italian customs vessels.

During the two week standoff and after Salvini launched a series of furious tweets at the charity worker, including calling her a “pain in the arse”, “criminal”, “delinquent” and “poor woman who only tried to kill five Italian soldiers.” Rackete has gone into hiding following numerous threats, her charity Sea-Watch said Wednesday, a day after her release from Italian custody.

Read more …

I see a lot of outright stupid takes on this, as in Greeks turn their backs on populism. In reality, Tsipras is losing big only because he failed to deliver what he promised. Now an old right wing party named New Democracy with a leader who belongs to an actual political dynasty (!) will take over, and things will get even worse for the poor. I’m also afraid of violence in the streets.

Greeks Vote In Snap General Election (BBC)

Greeks are going to the polls to elect a new parliament, with the centre-right opposition mounting a strong challenge to the leftist government. The New Democracy party of Kyriakos Mitsotakis is hoping to end more than four years of rule by Prime Minister Alexis Tsipras’s Syriza party. Mr Tsipras called snap elections soon after suffering an electoral defeat in May’s European elections. The crisis triggered a succession of financial bailouts, with the Greek economy shrinking by 28% between 2008 and 2016, and increasing unemployment has thrown many Greeks into poverty. Greece exited the bailout programme in August of last year and growth has returned.

Mr Mitsotakis is promising lower taxes, greater privatisation of public services and plans to renegotiate a deal with Greece’s creditors that would allow more money to be reinvested in the country. Mr Tsipras, who came to power in 2015, has promised more investment and recently boosted pensions. His own investment policies would also have to be renegotiated with creditors as the country remains under eurozone supervision. Each of the country’s numerous parties needs to gain at least 3% of the vote to get into the parliament and as many as seven of them could win seats.

The winning party gets a 50-seat bonus and needs 151 seats in the 300-seat parliament to have a majority. At the European elections, New Democracy won 33.11% of the vote against 23.78% for Syriza. The highest percentage of 18-to-24 year olds (30.5%) at that election backed New Democracy.

Read more …

 

Europe c.1320

 

 

 

 

Home Forums Debt Rattle July 7 2019

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  • #48426

    Pablo Picasso Guernica [Study] 1937   • Trump Administration Is ‘Inept And Insecure’ – UK Ambassador (BBC) • Trump Couldn’t Ignore Contradictions
    [See the full post at: Debt Rattle July 7 2019]

    #48427

    zerosum
    Participant

    HELP!
    HELP US!

    The cries were made around the world.

    The cries were heard by populism around the world

    HANG ON!
    HELP IS COMING!

    Populism did not help
    As you said, “Greeks turn their backs on populism

    …. things will get even worse for the poor”

    A pyramid requires a bottom.
    The bottom of the the pyramid is covered with the bodies of the poor.

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