Sep 102019
 
 September 10, 2019  Posted by at 9:23 am Finance Tagged with: , , , , , , , , , , ,


Marc Chagall The painter to the moon 1917

 

 

To everyone used to receiving Automatic Earth posts in their email, I’m sorry but since Saturday they’re suddenly bouncing again en masse. This makes me very tired by now, but I’ll look for a solution. I suspect there may be a connection between this and Google accusing me of violating their rules, without telling me what rules I’m supposed to have violated.

 

 

 

 

Real US Debt Levels Could Be A Shocking 2,000% of GDP (CNBC)
Boris Johnson Loses Second Attempt To Trigger Early General Election (Ind.)
Parliament Suspension Begins As Johnson’s Election Bid Fails (BBC)
MPs Order Boris Johnson To Hand Over Government Communications (Ind.)
Why Europe Remains Unfazed By The UK’s Ongoing Political Drama (MW)
Judge Lets Facebook Privacy Class Action Proceed, Calls Company’s Views ‘So Wrong’ (R.)
Hong Kong Leader Tells US Not To ‘Interfere’ After Fresh Protests (AFP)
And The Word Was God (Kunstler)
How 50 Years Of The ‘Nobel Prize’ In Economics Redrew Our Map Of Society (PEP)
Over 700 Migrants Cross Into Greece Over the Weekend (GR)

 

 

At this stage, what’s the difference between 1,000% and 2,000%?

Real US Debt Levels Could Be A Shocking 2,000% of GDP (CNBC)

Total potential debt for the U.S. by one all-encompassing measure is running close to 2,000% of GDP, according to an analysis that suggests danger but also cautions against reading too much into the level. AB Bernstein came up with the calculation — 1,832%, to be exact — by including not only traditional levels of public debt like bonds but also financial debt and all its complexities as well as future obligations for so-called entitlement programs like Social Security, Medicare and public pensions. Putting all that together paints a daunting picture but one that requires nuance to understand. Paramount is realizing that not all of the debt obligations are set in stone, and it’s important to know where the leeway is, particularly in the government programs that can be changed either by legislation or accounting.


“This conceptual difference is important to acknowledge because this lens is often used by those who wish to paint a dire picture about debt,” Philipp Carlsson-Szlezak, chief U.S. economist at AB Bernstein, said in the report. “While the picture is dire, such numbers don’t prove we are doomed or that a debt crisis is inevitable.” Crisis measures cut both ways — sometimes a seemingly smaller level of debt can cause outsized problems during times of economic stress, such as during the financial crisis. And larger levels of debt can be sustained so long as other conditions, like leverage levels, or debt to capital, are manageable.

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He lost all 6 of his first 6 votes. Unique.

Boris Johnson Loses Second Attempt To Trigger Early General Election (Ind.)

Boris Johnson has lost his second attempt to trigger an early general election in his sixth humiliating Commons defeat since becoming prime minister. Ahead of parliament being suspended by the government for five weeks, MPs opposed to a no-deal Brexit again deprived the prime minister of the required votes for an early poll in the last major showdown of the current session. Less than a week after his first bid to seek an election was scuppered, Mr Johnson again asked the Commons to vote on a motion to bypass a law setting out that the next vote should not take place until 2022.


From Dutch newspaper NRC

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5 whole weeks, But trust me, they won’t be silent weeks.

Parliament Suspension Begins As Johnson’s Election Bid Fails (BBC)

Parliament has officially been suspended for five weeks, with MPs not due back until 14 October. Amid unusual scenes in the House of Commons, some MPs protested against the suspension with signs saying “silenced” while shouting: “Shame on you.” It comes after PM Boris Johnson’s bid to call a snap election in October was defeated for a second time. Opposition MPs refused to back it, insisting a law blocking a no-deal Brexit must be implemented first. In all, 293 MPs voted for the prime minister’s motion for an early election, far short of the two thirds needed. Parliament was suspended – or prorogued – at just before 02:00 BST on Tuesday.


As Speaker John Bercow – who earlier announced his resignation – was due to lead MPs in a procession to the House of Lords to mark the suspension, a group of angry opposition backbenchers appeared to try to block his way. It is normal for new governments to suspend Parliament, but the length and timing of the prorogation in this case has sparked controversy.

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Wonder how they’re going to go about not complying.

MPs Order Boris Johnson To Hand Over Government Communications (Ind.)

Boris Johnson’s government has suffered another humiliating Commons defeat, as MPs ordered the release of internal communications between the prime minister’s top advisers over the decision to suspend parliament. The emergency motion – passed by 311 to 302 votes – means the government will also be forced to publish its no-deal planning documents under Operation Yellowhammer. Put forward by the ex-Tory MP Dominic Grieve, the motion orders ministers to surrender the documents by Wednesday and includes the private communications of Mr Johnson’s chief-of-staff, Dominic Cummings. It demands “all correspondence, whether formal or informal in both written and electronic form” relating to the prorogation sent by officials since the day before Mr Johnson’s arrival in office on 24 July.


And their emergency motion makes clear this should include messages sent via the WhatsApp, Facebook Messenger, Telegram and Signal apps, by text or iMessage and from “private email accounts both encrypted and unencrypted”. It lists nine individuals in Mr Johnson’s administration, including Mr Cummings, Hugh Bennett, Simon Burton, Dominic Cummings, Nikki da Costa, Tom Irven, Sir Roy Stone, Christopher James, Lee Cain and Beatrice Timpson. Mr Grieve, who is now sitting as an independent MP after losing the Tory whip, said public officials had given him information relating to prorogation that informed him “they believed the handling of this matter smacked of scandal”.

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Europe at least pretends it has bigger fish to fry. Ireland, Holland, Belgium, France will be hit, but many others truly don’t care much.

Why Europe Remains Unfazed By The UK’s Ongoing Political Drama (MW)

Reason No. 1: the economy, and an end to uncertainty. Trust Macron to come back swinging at the next EU council meeting mid-October, when a possible request for an extension might be discussed if U.K. Prime Minister Boris Johnson abides by the law voted by Parliament. In March, the French president argued that it would be a waste of time. Others were in favor of granting the U.K. a longer extension, of up to a year. The irony is that Macron defends the same line as the hardest Brexiteers — mainly that there is a cost to uncertainty that at some point may exceed the cost of a no-deal Brexit. [..]

Reason No. 2: Diplomacy, and an EU desire to move on. A new European Commission is taking over on Nov. 1 — the day after the Brexit deadline — and Europe has challenges of its own to focus on. The influence of euroskeptic governments and movements on the EU’s deliberations is the first challenge, just as the EU has embarked on the tough discussions over its multiyear budget. Europe also needs to come together on the many challenges it is facing: whether to boost joint defense capabilities or what policy to adopt toward Russia, for example, in addition to optimizing its positioning vis-à-vis U.S. President Donald Trump. [..]

Reason No. 3: Politics, and the fact that Brexit isn’t a European domestic problem. For EU leaders, there is little political capital to lose by playing hardball with London. Brexit has never been a European problem, and it never figured as a topic in the many national electoral campaigns that have taken place since the Brexit referendum in 2016. EU leaders don’t even really care about the possible blame game that would follow a hard Brexit, if they appear to have slammed the door on London.

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Facebook is the opposite of privacy, that’s its business model.

Judge Lets Facebook Privacy Class Action Proceed, Calls Company’s Views ‘So Wrong’ (R.)

A federal judge on Monday ordered Facebook to face most of a nationwide lawsuit seeking damages for letting third parties such as Cambridge Analytica access users’ private data, calling the social media company’s views on privacy “so wrong.” While dismissing some claims, U.S. District Judge Vince Chhabria in San Francisco said users could try to hold Facebook liable under various federal and state laws for letting app developers and business partners harvest their personal data without their consent on a “widespread” basis. He rejected Facebook’s arguments that users suffered no “tangible” harm and had no legitimate privacy interest in information they shared with friends on social media.


“Facebook’s motion to dismiss is littered with assumptions about the degree to which social media users can reasonably expect their personal information and communications to remain private,” Chhabria wrote. “Facebook’s view is so wrong.” A Facebook spokeswoman said the company considered protecting people’s information and privacy “extremely important,” but believed its practices were consistent with its disclosures and “do not support any legal claims.” Lesley Weaver and Derek Loeser, two of the plaintiffs’ lawyers, said in a joint statement that they were pleased with the decision, and “especially gratified that the court is respecting Facebook users’ right to privacy.”

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“It’s extremely inappropriate for any country to interfere in Hong Kong’s affairs,” she told reporters.

But for many Hong Kongers, China is that country.

Hong Kong Leader Tells US Not To ‘Interfere’ After Fresh Protests (AFP)

Hong Kong’s embattled leader warned the United States on Tuesday not to “interfere” with her government’s response to the city’s pro-democracy movement, after fresh protests called on Washington to ramp up pressure on Beijing. Millions of people have demonstrated over the last 14 weeks in the biggest challenge to China’s rule of the financial hub since its handover from Britain in 1997. Protesters took to the streets again on Sunday, marching to the American consulate to call on Congress to pass a bill expressing support for the pro-democracy movement.


The proposed law could undermine Hong Kong’s special US trade privileges by mandating regular checks on whether authorities were respecting the Basic Law that underpins the city’s semi-autonomous status. But Hong Kong’s pro-Beijing Chief Executive Carrie Lam said that any change to its economic relationship with Washington would threaten “mutual benefits”. “It’s extremely inappropriate for any country to interfere in Hong Kong’s affairs,” she told reporters. “I hope that no more people in Hong Kong actively reach out to tell the United States to pass the act.” [..] Washington has rejected Beijing’s allegations that it is backing the demonstrators and China has provided little evidence to back its claims beyond supportive statements from some US politicians.

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Jim standing up for teaching proper language skills.

And The Word Was God (Kunstler)

Enough about me. Obviously, the racial shuffle has been going on for decades in the New York City school system, but in these times of white privilege and intersectionality, the escape routes of G & T and SP must be plugged. No extra gruel for you! But I have a remedy for the persistent problem of underperformance, one that has not really been tried: intense concentration, starting in preschool and going forward as long as necessary, in spoken English. Language is the foundation of learning, certainly of reading skill, and too many children just can’t speak English. Without it, they’ll be unable to learn anything else, including math. The reasons for their poor language skills are beside the point.


Whether they are newcomers from foreign lands or the descendants of slaves, they need to learn how to speak English and to do it correctly, with all the tenses and correct verbs. They need to be intelligible to others and to themselves to make sense of the world. The resistance to this idea would be mighty and furious, I’m sure. Some people will always be smarter than others, but the disparities at issue are badly aggravated by poverty in language. We don’t even pretend to want to take the obvious steps to correct this, even though it is obviously correctable. Learning anything puts people out of their comfort zone, so that can’t be used as an excuse. Diversity in language is a handicap, and it does not make you specially abled. In the beginning was the Word, and the Word was with God, and the Word was God.

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I used to rant a lot against the Fauxbel, haven’t for a bit. But my friend Steve Keen is involved in this round.

How 50 Years Of The ‘Nobel Prize’ In Economics Redrew Our Map Of Society (PEP)

Who shaped our world more Neil Armstrong, Jimi Hendrix, or the King of Sweden? By any standards, 1969 was a momentous year. Neil Armstrong was the first person to walk on the moon, half a million people came to Woodstock to hear Jimi Hendrix, and the Stonewall riots kicked off the gay liberation movement. The same year, less well remembered, an event in Stockholm arguably shaped our world today even more. And not for the best. Fifty years ago this year, the King of Sweden presented with royal pomp the first ever Nobel medals in economics. The prize has been dogged by controversy ever since. Alfred Nobel the founder of the awards never wanted an economics prize, his descendants want it scrapped and the economist F.A. Hayek said it was dangerous.

That’s not the half. Serious thinkers argue that the prize in ‘economic sciences’, as it’s called, has given economic ideas which favour the rich and powerful the gloss of scientific truth. The prize, still paid for every year by Sweden’s Central Bank, has helped weaken democratic control of money, they argue, and helped one school of economic thought – known as neoclassical – dominate the rest. It has contributed to a crisis of conformity in economics and trouble well beyond the ivory tower. This narrow economic thinking celebrated by the Nobels has often ignored, and exacerbated, the multiple crises staring us in the face: ecological breakdown, financial crashes, and politically toxic inequality.

Take the 2018 winner William Nordhaus: his models may have delayed action on climate change. Or consider the 1997 winners Robert Merton and Myron Scholes: their hedge fund had to be bailed out to the tune of $3.6 billion less than a year after they won the prize. Or wrap your head around the equations of the 1996 winner, James Mirrlees, whose work contributed to plummeting tax on the super-rich around the world. All of these “contributions” are described as economic science: the political values and choices inherent in the models are rarely acknowledged or discussed. Debate is closed down.

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It may have started again. Erdogan is threatening to send over 5.5 million refugees and migrants if a safe area in northern Syria in not funded by the west.

Over 700 Migrants Cross Into Greece Over the Weekend (GR)

At east 207 migrants landed just on the island of Lesvos early on Monday, bringing the total number of illegal migrants landing on all Aegean islands over the weekend to 726. As migrant flows increase, Greek premier Mitsotakis said that Turkey should not try to coerce either Greece or Europe in its attempts to receive support for a plan to resettle Syrian refugees in northern Syria. Turkey is currently proposing to resettle one million refugees there, and it may reopen the route for illegal immigrants to flow into Europe if it does not receive adequate international support for the plan, President Tayyip Erdogan said on Thursday.


“Mr. Erdogan must understand that he cannot threaten Greece and Europe in an attempt to secure more resources to handle the refugee (issue),” Mitsotakis told a news conference in the northern Greek city of Thessaloniki. “Europe has given a lot of money, six billion euros in recent years, within the framework of an agreement between Europe and Turkey and which was mutually beneficial,” the Greek PM said.

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Home Forums Debt Rattle September 10 2019

This topic contains 5 replies, has 3 voices, and was last updated by  V. Arnold 1 week, 2 days ago.

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  • #49657

    Marc Chagall The painter to the moon 1917     To everyone used to receiving Automatic Earth posts in their email, I’m sorry but since Saturd
    [See the full post at: Debt Rattle September 10 2019]

    #49658

    Dr. D
    Participant

    “MPs Order Boris Johnson to Hand Over Government Communications (Ind.)”

    They’re just determined to give every possible negotiating supremacy to Europe, aren’t they? But don’t worry, if they got this far without leaks, most likely already didn’t write anything down.

    No idea how this goes since it will now depend on the arcana of Parliamentary process, but you did catch the possibility that he called for this – and for a real, honest election, twice – so that the Queen can then say, “Hey, YOU YOURSELF just proved there is absolute confidence in government, and YOU YOURSELF said and demanded Boris be in charge.” Then carry on with his, or rather Cumming’s, plan. (Presumably allied with the Queen, but can’t be proven as she has to appear an innocent)

    Same article pointed out that they have also outed 21 party traitors, which is a fabulous win. Gee, seems hard to negotiate effectively with half the government, plus 21, constantly selling out your every move and plan to Europe. No wonder they didn’t want an election. The people might be less-than-pleased with this epic screwing by Westminster by everyone left and right, within 500 miles of power.

    “Cambridge Analytica”

    Really? THIS is what they object to? Well, thank God for Trump Derangement Syndrome, or no one would promote any adherence to the law at all. #AntiLogos. That is to say, #AntiLogic, #AntiLaw.

    Do I exaggerate? Well the 2nd Amendment is FEDERAL LAW, but people march daily protesting AGAINST laws, and AGAINST their enforcement. Same with the 1st, the 4th, the 5th, immigration entry… They are, one and all, A N T I – L A W. Against any form of law and order at all. There is a means to fix this if they don’t like it: P A S S a L A W. But they won’t, they just selectively enforce ‘laws’ that do NOT exist, then selectively refuse to enforce laws that DO exist. That is to say, they live in a world of complete madness, without rules or definitions. What is right or wrong, rewarded or punished, legal or illegal, is whatever I think of from minute to minute, and will change again by lunch. It’s the madness of King Louis or King John, the order of Caligula and Nero. History does not smile on nations who accept and encourage the end of rules and “Let each man do as they wilt,” whatever “seems right in their own eyes” whatever the Aquarian New Age touchy-feely, “who am I to judge” “we tolerate all, however so violent” of such things.

    “Hong Kong Leader Tells US Not to ‘Interfere’ After Fresh Protests (AFP)”

    I can’t believe they are asking Trump to save them. Do they think he’s going to invade? Dummies. Okay, suppose he did: do they want the gentle democratic care we’ve given Iraq, Libya, and Syria? They want the full benefits we give Chicago and Baltimore? The only way we know how to save a town like Hong Kong is to bomb the town. Whatever. It won’t happen anyway, and more’s the better for them.

    “In the beginning was #Logos, and the #Logos was with God, and the #Logos WAS God.”

    If you can’t use language correctly, with shifting definitions, without lying, you can’t think straight. Then your sloppy, illogical talking and thinking lead to civil war as the #Logos must be restored, as has long been planned and is being attempted now. Ask Orwell: the first thing they attack and destroy is language. Why is that? The Devil is the “Father of Lies.” How come? Hold on: let me ask CNN.

    Ah but the Nobel is such a perfect indicator of complete Economic idiocy! Krugman has one, and he hasn’t said a word of sense since. Wrong in every prediction, more wrong than Gartman. You can make a lot of money on that. Besides, it tells you who’s in and who’s out and what they’re going to try next among lying, cheating, stealing, and murdering, as a tireless lion roaming the earth, seeking to devour. All for the low price of the Fauxbel prize. I say keep it! But force a warming label on the side saying, “This prize is dangerous to life on earth” and require the winner to wear leper bells and a dunce hat.

    Speaking of Nordhaus, however, the World Meteorological Organization Chief just warned off the million climate alarmists as basically being religious fundamentalists and not scientists. https://www.zerohedge.com/news/2019-09-09/world-meteorological-organization-chief-castigates-climate-alarmists-its-not-end
    That’s coming from a guy and community that got 105 of 108 climate models wrong, all in the wrong direction. #NotScience

    Perhaps we need a new Fauxbel and some more hats, no?

    #49659

    Dr. D
    Participant

    Tao Te Ching – Lao Tzu – chapter 57

    Rule a nation with justice.
    Wage war with surprise moves.
    Become master of the universe without striving.
    How do I know that this is so?
    Because of this!

    The more laws and restrictions there are,
    The poorer people become.
    The sharper men’s weapons,
    The more trouble in the land.
    The more ingenious and clever men are,
    The more strange things happen.
    The more rules and regulations,
    The more thieves and robbers.

    Therefore the sage says:
    I take no action and people are reformed.
    I enjoy peace and people become honest.
    I do nothing and people become rich.
    I have no desires and people return to the good and simple life.

    #49660

    V. Arnold
    Participant

    Marc Chagall The painter to the moon 1917

    …but of course; what else could it possibly be?

    #49665

    Trump just fired Bolton

    #49681

    V. Arnold
    Participant

    Trump just fired Bolton

    …and the gods rejoice…
    Now, how about fatso and Pence?

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