Dec 192019
 
 December 19, 2019  Posted by at 10:50 am Finance Tagged with: , , , , , , , , , ,  16 Responses »


Jack Delano Residents of Miss Disher’s rooming house for rail workers, Clinton, Iowa 1943

 

Pelosi Threatens To Delay Senate Impeachment Trial (Pol.)
Mueller Report Was Based On CIA-Fabricated “Evidence” (Bill Binney)
Manafort’s Fraud Case In New York Dismissed (R.)
Democratic Debate: Seven Candidates To Face Off A Day After Impeachment (G.)
US Concedes Defeat On Russia’s Nord Stream 2 Pipeline (ZH)
US Is Bent On ‘Absolute Military Supremacy’ – Mikhail Gorbachev (NW)
Afghanistan War – The Crime of the Century (Ron Paul)
The Final Act (Dmitry Orlov)

 

 

The Democrats have unleashed powers yesterday (and the previous 3-4 years) that they cannot control.

Not long ago Pelosi said “We must hurry and impeach Donald Trump because he is a risk to National Security.” Not a priority anymore?

Paul Sperry: “The longer Democrats drag out the impeachment process, the longer Durham has to bring indictments, declassify documents, expose new evidence Trump was justified asking Ukraine to help investigate how Obama/Biden/Clinton sabotaged his 2016 campaign..”

Pelosi Threatens To Delay Senate Impeachment Trial (Pol.)

Speaker Nancy Pelosi refused to commit Wednesday to delivering articles of impeachment to the Senate, citing concerns about an unfair trial on removing President Donald Trump from office. Senior Democratic aides said the House was “very unlikely” to take the steps necessary to send the articles to the Senate until at least early January, a delay of at least two weeks and perhaps longer. “So far we haven’t seen anything that looks fair to us,” Pelosi told reporters at a news conference just moments after the House charged Trump with abuse of power and obstructing congressional investigations. “That would’ve been our intention, but we’ll see what happens over there.”

Pelosi’s comments, which echo suggestions raised by other Democrats throughout the day, inject new uncertainty into the impeachment timetable and send the House and Senate lurching toward a potential institutional crisis. Though the House adopted two articles of impeachment charging Trump with abuse of power and obstruction of congressional investigations, it must pass a second resolution formally naming impeachment managers to present the case in the Senate. That second vehicle triggers the official transmission of articles to the Senate. By delaying passage of that resolution, Pelosi and top Democrats retain control of the articles and hope to put pressure on Senate Majority Leader Mitch McConnell to adopt trial procedures they consider bipartisan.

McConnell has boasted that he has closely coordinated the planning of the trial with the White House and has repeatedly predicted Trump would be acquitted. He’s also suggested Democrats shouldn’t be allowed to call new witnesses as they attempt to present their case. The White House lashed out at the move. “House Democrats have run a fatally flawed process with fake facts, and now they want to deny the President his day in court with another procedural maneuver that proves anew they have no case,” said Eric Ueland, Trump’s top congressional liaison to Congress.

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Can we say the same about impeachment?

Mueller Report Was Based On CIA-Fabricated “Evidence” (Bill Binney)

[..] In other words, it looked like the CIA did this, and that it was a matter of the CIA making it look like the Russians were doing the hack. So, when you look at that and also look at the DNC emails that were published by Wikileaks that have this FAT-file format in them, all 35,813 of these emails have rounded off times to the nearest even second. That’s a FAT-file format property; that argues that those files were, in fact, downloaded to a thumb drive or CD-rom and physically transported before Wikileaks posted them. Which again argues that it wasn’t a hack. So, all of the evidence we’re finding is clearly evidence that the Russians were not in fact hacking; it was probably our own people.

It’s very hard for us to get this kind of information out. The mainstream media won’t cover it; none of them will. It’s very hard. We get some bloggers to do that and some radio shows. Also, I put all of this into a sworn affidavit in the Roger Stone case. I did that because all of the attack on him was predicated on him being connected with this Russian hack which was false to being with. All the evidence we’re accumulating clearly says and implies, the US government — namely the FBI, CIA, the DOJ, and of course State Department — all these people involved in this hack, bought a dossier and all of the information going forward to the FISA court. All of them knew that this was a fake from the very beginning, because this Guccifer 2.0 character was fabricating it.

They were using him plus the Internet Research Agency [IRA] as “supposed trolls of the Russian government”. Well, when they sent their lawyers over to challenge that in a court of law, the government failed to prove they had any connection with the Russian government. They basically were chastised by the judge for fabricating a charge against this company. So, if you take the IRA and the trolls away from that argument, and Guccifer 2.0, then the entire Mueller report is a provable fabrication; because it’s based on Guccifer 2.0 and the IRA. Then the entire Rosenstein indictment is also a fabrication and a fake and a fraud for the same reasons. The judges seem to be involved in trying to keep this information out of the public domain.

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Double jeopardy.

Manafort’s Fraud Case In New York Dismissed (R.)

Paul Manafort, U.S. President Donald Trump’s former campaign chairman, on Wednesday won the dismissal of New York state fraud charges, in a defeat for the Manhattan district attorney’s efforts to hold him accountable even if pardoned by Trump. Justice Maxwell Wiley of the state Supreme Court in Manhattan said at a hearing that letting the district attorney, Cyrus Vance, prosecute Manafort would violate Manafort’s protection against double jeopardy, or being prosecuted twice for the same conduct. “We will appeal today’s decision and will continue working to ensure that Mr. Manafort is held accountable for the criminal conduct against the People of New York that is alleged in the indictment,” Vance’s spokesman Danny Frost said in a statement.


Vance, a Democrat, announced the indictment of Manafort on 16 felony counts including residential mortgage fraud on March 13, less than an hour after Manafort was ordered to spend 7-1/2 years in prison on various federal charges. Those charges stemmed from former U.S. Special Counsel Robert Mueller’s probe into Russian interference in the 2016 U.S. presidential election, and resulted in Manafort’s August 2018 conviction on tax evasion and bank fraud. Manafort, 70, has been serving his sentence at a federal prison in Pennsylvania, but was hospitalized last week for what his lawyer called a cardiac incident. He did not attend Wednesday’s hearing but his lawyer, Todd Blanche, said “obviously, we are very happy” with the dismissal. Manafort had pleaded not guilty. “This indictment should never have been brought, and today’s decision is a stark reminder that the law and justice should always prevail over politically motivated actions,” Blanche said..

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Leave it to the Guardian to say: “Looming over the high-stakes debate are those who won’t be in attendance”, and then not mention Tulsi Gabbard.

Democratic Debate: Seven Candidates To Face Off A Day After Impeachment (G.)

The final Democratic presidential debate of the year is bringing seven 2020 candidates to the stage in California one day after the House voted to impeach Donald Trump for abuse of power and obstruction. Facing off in Los Angeles on Thursday are the former vice president Joe Biden and senators Bernie Sanders and Elizabeth Warren; the South Bend, Indiana mayor, Pete Buttigieg; Senator Amy Klobuchar, the entrepreneur Andrew Yang and the billionaire environmental activist Tom Steyer. Looming over the high-stakes debate are those who won’t be in attendance. The Democratic National Committee said candidates had to hit at least 4% in four national polls or at least 6% in two early-state polls in the weeks leading up to the event in order to qualify.


The candidates also had to attract at least 200,000 donors. That leaves no black or Latino candidates among the nearly all-white lineup of Democratic frontrunners. Senator Cory Booker and the former housing secretary Julián Castro both failed to qualify for the debate, and Senator Kamala Harris recently ended her campaign amid polling showing her far behind in California, her home state. Also absent from the event will be Michael Bloomberg, the former New York City mayor and billionaire who made a late entrance into the race last month and has poured an estimated $13.5m into TV ads in California. Steyer, the other billionaire in the race, has spent roughly $1.6m on ads in the state.

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A Merkel win.

US Concedes Defeat On Russia’s Nord Stream 2 Pipeline (ZH)

A new Bloomberg headline reads “U.S. Concedes Defeat on Gas Pipeline It Sees as Russian Threat” just following new sanctions included in the House and Senate passed 2020 National Defense Authorization Act (NDAA) this week. But two administration officials tell Bloomberg it’s too little too late, despite Trump’s heightened rhetoric of calling Germany “a captive to Russia” and charging Berlin with essentially giving “billions” of dollars to Russia: Senior U.S. administration officials, who asked not to be identified discussing the administration’s take on the project, said sanctions that passed Congress on Tuesday as part of a defense bill are too late to have any effect. The U.S. instead will try to impose costs on other Russian energy projects, one of the officials added.

The Bloomberg report sees this as a rare admission of defeat: “The admission is a rare concession on what had been a top foreign-policy priority for the Trump administration and highlights how European allies such as Germany have been impervious to American pressure to abandon the pipeline. It also shows how the U.S. has struggled to deter Russia from flexing its muscles on issues ranging from energy to Ukraine to election interference.” The resolution contained in the defense spending bill, expected to be immediately signed into law by Trump, are measures which specifically target companies assembling the pipeline — a last ditch US effort to block the controversial 760-mile, $10.2BN project that would allow Russia to export natural gas directly to Germany, depriving Ukraine of badly needed gas transit fees along the current route for Russian supplies.

Washington’s position has long been that it weakens European energy security, while Merkel’s Germany has rejected Trump’s “meddling” in European energy affairs, which the Europeans have lately sought to diversify. Secretary of State Mike Pompeo during a February visit to Poland said Nord Stream 2 ultimately “funnels money to Russians in ways that undermine European national security.”

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‘Their obsession with weapons is crazy’

US Is Bent On ‘Absolute Military Supremacy’ – Mikhail Gorbachev (NW)

Former Soviet premier Mikhail Gorbachev has urged President Donald Trump’s administration to re-engage with Russia on landmark arms control treaties, warning that the collapse of Cold War-era nuclear weapon limits threatens global catastrophe. Speaking with Japanese newspaper The Asahi Shimbun, Gorbachev lamented America’s withdrawal from two key arms control treaties signed during the Cold War—the Anti-Ballistic Missile Treaty (ABMT) during President Geroge W. Bush’s tenure, and the more recent withdrawal from the Intermediate-Range Nuclear Forces (INF) Treaty.

Russia has also since suspended participation in the INF Treaty, prompting concerns of a new arms race. The infographic below, provided by Statista, shows the estimated global nuclear weapons arsenals as of December 2017. Gorbachev is a prominent advocate of nuclear disarmament. He told the Asahi he is “still praying for” the destruction of all nuclear weapons, noting that the number of warheads in Russia and the U.S. has reduced by more than 80 percent since the peak years of the Cold War. But he warned that this “peace dividend” is now at risk with the collapse of the ABMT and INF Treaty. It is also unclear whether New START (Strategic Arms Reduction Treaty)—the successor to START I that Gorbachev helped craft—will be renewed when it expires in 2021.

The Trump administration said last year that it would ditch the 1987 INF Treaty, which banned ground-launched nuclear and conventional missiles with ranges from 310 miles 3,417 miles. The White House accused Russia of violating the deal by developing the SSC-8 missile. But Gorbachev blamed Washington for the development. “The decision by the United States to withdraw from the INF threatens to unleash a sequence of events that would move to undo” the post-Cold War peace dividend, he said. “Out of the three principal pillars of global strategic stability—the ABMT, INF and START—only one is left,” he added, noting that the future of New START is far from certain.

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“.. the mainstream media has shown literally no interest in what should be the story of the century.”

Afghanistan War – The Crime of the Century (Ron Paul)

“We were devoid of a fundamental understanding of Afghanistan. We didn’t know what we were doing.” So said Gen. Douglas Lute, who oversaw the US war on Afghanistan under Presidents Bush and Obama. Eighteen years into the longest war in US history, we are finally finding out, thanks to thousands of pages of classified interviews on the war published by the Washington Post last week, that General Lute’s cluelessness was shared by virtually everyone involved in the war. What we learned in what is rightly being called the “Pentagon Papers” of our time, is that hundreds of US Administration officials – including three US Presidents – knowingly lied to the American people about the Afghanistan war for years. This wasn’t just a matter of omitting some unflattering facts. This was about bald-faced lying about a war they knew was a disaster from almost day one.

Remember President Bush’s Defense Secretary Donald Rumsfeld? Remember how supremely confident he was at those press conferences, acting like the master of the universe? Here’s what he told the Pentagon’s special inspector general who compiled these thousands of interviews on Afghanistan: “I have no visibility into who the bad guys are.” It is not only members of the Bush, Obama, and Trump Administrations who are guilty of this massive fraud. Falsely selling the Afghanistan war as a great success was a bipartisan activity on Capitol Hill. In the dozens of hearings I attended in the House International Relations Committee, I do not recall a single “expert” witness called who told us the truth. Instead, both Republican and Democrat-controlled Congresses called a steady stream of neocon war cheerleaders to lie to us about how wonderfully the war was going.

Victory was just around the corner, they all promised. Just a few more massive appropriations and we’d be celebrating the end of the war. Congress and especially Congressional leadership of both parties are all as guilty as the three lying Administrations. They were part of the big lie, falsely presenting to the American people as “expert” witnesses only those bought-and-paid-for Beltway neocon think tankers. What is even more shocking than the release of this “smoking gun” evidence that the US government wasted two trillion dollars and killed more than three thousand Americans and more than 150,000 Afghans while lying through its teeth about the war is that you could hear a pin drop in the mainstream media about it. Aside from the initial publication in the Washington Post, which has itself been a major cheerleader for the war in Afghanistan, the mainstream media has shown literally no interest in what should be the story of the century.

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The dollar?!

The Final Act (Dmitry Orlov)

Another net benefit for Trump is the never-ending impeachment saga. It has kept him in the media limelight and has allowed him to pretend that he is prevailing heroically against great odds while making his opposition look ridiculous in the eyes of his supporters. After the “Russian meddling” fable unraveled, an even more preposterous rationale for impeachment has taken its place. An attempt to impeach Trump for refusing to cooperate with a congressional investigation is in the process of failing, since anyone with more intelligence than a bucket of California penis fish should know that it is up to the courts, not up to the legislature, to resolve disputes between the legislature and the executive.

All that remains now is an alleged abuse of power by Trump. Apparently, it is a no-no for a US president to ask a foreign leader to investigate a US presidential candidate for a variety of crimes such as corruption, bribery and money-laundering. This may all seem quite ridiculous, but it serves a purpose: it allows Trump to clean up on free publicity and to continue fiddling (tweeting, in his case) as Rome burns. But what has set fire under Rome is not the decrepitating state of US society, or the permanent and permanently worsening trade imbalance with China, or the never-ending impeachment farce. It is the incipient failure of the US dollar.

For those who have been paying careful attention, the surreal nature of the procedings, and the fact that results no longer matter—only appearances do—have become perfectly obvious, but they are a tiny minority. What has allowed the politicians and the media to exploit the general public’s innate normalcy bias and to keep the media replay loop going without too many people catching on to what’s really happening was (note the past tense!) the ability of the US government (with the assistance of the Federal Reserve, which is a government-linked but essentially private entity) to paper over the gaping chasm in the nation’s finances by issuing debt, in the form of US Treasury paper.

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Dec 172019
 


Dorothea Lange “Men on ‘Skid Row’, Modesto, California” 1937

 

Boeing Crisis Escalates As Planemaker Halts 737 Production (R.)
Judge Denies Flynn’s Requests for Exculpatory Information, Case Dismissal (ET)
What Everyone is Missing About the Afghanistan Papers (TMU)
Chinese Crypto Scammers Helped Inspire Recent Bitcoin Market Carnage (ZH)
College Enrollment Skids 8th Year in a Row, But Student Loans Skyrocket (WS)
Erdogan Threatens To Recognise Killings Of Native Americans As Genocide (Ind.)
Kudlow: US-China Deal ‘Absolutely’ Done, US Exports To China Will Double (R.)
Sacklers Took $11 Billion Out Of Purdue Pharma As Opioid Crisis Worsened (AP)
Assange Extradition Fight Could Turn On Reports He Was Spied On For CIA (G.)
Doctors Ask Government To Evacuate Assange To An Australian Hospital (SMH)

 

 

Almost no Russia/Ukrainegate today! Just a little Michael Flynn.

We’ll havt to do with Boeing, which suspended its production of … what exactly. Below is a Reuters article which I picked up late yesterday. Ita talks about 737 production being suspended, not just 737 MAX. At that same URL, a different headline and article today, which says:

Boeing’s 737 Crisis Deepens As Production Stops For First Time In Two Decades
Boeing Co said on Monday it would suspend production of its best-selling 737 MAX jetliner in January, its biggest assembly-line halt in more than 20 years, as fallout from two fatal crashes of the now-grounded aircraft drags into 2020.

Not sure what this means. Did they cut only MAX, or all models? Or was MAX the only model they were still producing? There is one other model: “Boeing said it will continue P8 production of the military version of the 737.”

Boeing Crisis Escalates As Planemaker Halts 737 Production (R.)

Boeing Co is temporarily halting 737 production in January for the first time in more than 20 years as the grounding of the planemaker’s best-selling MAX after two fatal crashes looks set to last well into 2020. Boeing, which builds the 737 south of Seattle, said it will not lay off any employees during the production freeze, though the move could have repercussions across its global supply chain and the U.S. economy. The decision, made by Boeing’s board after a two-day meeting in Chicago, follows news last week that the Federal Aviation Administration (FAA) would not approve the plane’s return to service before 2020.


[..] Until now Boeing has continued to produce 737 MAX jets at a rate of 42 per month and purchase parts from suppliers at a rate of up to 52 units per month, even though deliveries are frozen until regulators approve the aircraft to fly commercially again. Halting production will ease a severe squeeze on cash tied up in roughly 375 undelivered planes, but only at the risk of causing industrial problems when Boeing tries to return to normal, industry sources said. Supply chains are already under strain due to record demand and abrupt changes in factory speed can cause snags. In 1997, Boeing announced a hit of $2.6 billion including hundreds of millions to deal with factory inefficiencies after it was forced to suspend output of its 737 and 747 lines due to supply chain problems. Boeing said it will continue P8 production of the military version of the 737.

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A judge refusing access to evidence for the lawyer of an accused is always suspicious. And will be overruled by a next court. Flynn said he didn’t discuss -or didn’t recall it because he talked with so many people at the time- Obama’s expulsion of Russian diplomats in late December 2016, with Kislyak. He did tell him Russia should lay low until Trump became president. It was his job at the time to talk to people. The judge says the FBI had “sufficient and appropriate basis” to interview Flynn because the FBI was investigating the Trump campaign. But that is the same basis that Horowitz has called into serious question.

Judge Denies Flynn’s Requests for Exculpatory Information, Case Dismissal (ET)

A federal judge has denied requests by Lt. Gen. Michael Flynn to prompt the government to give him information he deems exculpatory and to dismiss the case against him. District Court Judge Emmet Sullivan sided with the government in arguing that Flynn was already given all the information to which he was entitled. The judge also dismissed Flynn’s allegations of government misconduct, noting that Flynn already pleaded guilty to his crime and failed to raise his objections earlier when some of the issues he now complains about were brought to his attention. “The sworn statements of Mr. Flynn and his former counsel belie his new claims of innocence and his new assertions that he was pressured into pleading guilty,” Sullivan said in his Dec. 16 opinion.

Flynn, former head of the Defense Intelligence Agency, pleaded guilty on Nov. 30, 2017, to one count of lying to the FBI. He’s been expected to receive a light sentence, including no prison time, after extensively cooperating with the government on multiple investigations. In June, he fired his lawyers and hired former federal prosecutor Sidney Powell, who has since accused the government of misconduct, particularly of withholding exculpatory information or providing it late. Powell has argued that Flynn’s previous lawyers had a conflict of interest because they testified in a related case against Flynn’s former business partner. Flynn had previously told the court he would keep the lawyers despite the conflict, but Powell said prosecutors should have asked the judge to dismiss the lawyers anyway.

Sullivan disagreed, saying Flynn failed to show a precedent that the prosecutors had that obligation. Powell also said the government had no proper reason to investigate Flynn in the first place and that it had set up an “ambush interview” with the intention of making Flynn say something it could allege was false. Sullivan disagreed again and said that previously, with the advice of his former lawyers, Flynn never “challenged the conditions of his FBI interview.”

The prosecutors argued that the FBI had a “sufficient and appropriate basis” for the interview because Flynn days earlier told members of the Trump campaign, including soon-to-be Vice President Mike Pence, that he didn’t discuss with the Russian ambassador the expulsion of Russian diplomats in late December 2016 by then-President Barack Obama. Flynn later admitted in his statement of offense that he asked, via Russian Ambassador to the U.S. Sergei Kislyak, for Russia to only respond to the sanctions in a reciprocal manner and not escalate the situation. The FBI was at the time investigating whether Trump campaign aides coordinated with Russian 2016 election meddling.

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Where is the outrage? h/t Tyler

What Everyone is Missing About the Afghanistan Papers (TMU)

If you need more proof that lawmakers in the U.S. couldn’t care less about America’s woeful commitment to human rights abroad—or even care about the public who vote them into office—look no further than the recent Afghanistan papers and the reaction to the publications from Congress. According to the Washington Post, the outlet had obtained 2,000 pages of notes from interviews with more than 400 generals, diplomats, and other officials directly involved in the war. The documents showed that U.S. officials were lying about the progress being made in Afghanistan, lacked a basic understanding of Afghanistan, were hiding unmistakable evidence that the war had become unwinnable, and wasted close to $1 trillion in the process.

Barely a few hours following the Post’s publication, Congress rewarded the Pentagon for its stellar efforts with a $22 billion budget increase. How can we as a society justify this? One stand-out statistic—among the many concerning ones—is the fact that before the U.S. invasion the Taliban had almost completely put to bed Afghanistan’s illicit opium trade. Since the U.S. invasion, combined with $9 billion in U.S. funding for anti-opium programs, the Taliban is not only stronger than it ever was but sits cemented in a country that now supplies 80 percent of the world’s opium. I can’t help but think this was done on purpose.

Still, it would be worth re-thinking our outrage over the Afghanistan papers and determining what exactly it is we are outraged about. Are we simply angry because top U.S. officials lied to us about the fact they weren’t winning the war, making it a less worthwhile venture? If the U.S. were winning the war, spending $1 trillion in the process, killing record numbers of civilians, ramping up night raids to terrorize local populations, committing war crimes left right and center, would that suddenly make it all okay? As long as the war is being won, right? The truth is, like most wars the U.S. finds itself prosecuting; this was yet another war based entirely on lies and misconceptions—right from the outset.

As Marjorie Cohn, professor at Thomas Jefferson School of Law and president of the National Lawyers Guild famously said: “The UN Charter is a treaty ratified by the United States and thus part of U.S. law. Under the charter, a country can use armed force against another country only in self-defense or when the Security Council approves. Neither of those conditions was met before the United States invaded Afghanistan. The Taliban did not attack us on 9/11. Nineteen men—15 from Saudi Arabia—did, and there was no imminent threat that Afghanistan would attack the U.S. or another UN member country. The council did not authorize the United States or any other country to use military force against Afghanistan. The U.S. war in Afghanistan is illegal.” If that was the case in 2001, how this war has continued for close to another two decades begins to beggar belief.

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Below $7,000.

Chinese Crypto Scammers Helped Inspire Recent Bitcoin Market Carnage (ZH)

If you’re hoping to make money shorting bitcoin this holiday season, you might be in luck: Analysts say the price of a bitcoin is set to fall even further as the perpetrators of a massive Chinese crypto scheme dump their ill-gotten gains. Several of the participants in the $2 billion PlusToken scheme are dumping crypto from anonymous accounts. The sales are believed to be the reason fro bitcoin’s 50% drop since its peak in late June, which was around the time that some of the perpetrators of PlusToken were arrested in China. Unfortunately, Chinese authorities didn’t manage to nab them all, and a team of analysts at the blockchain consultancy Chainalysis are warning that the fallout isn’t over yet, according to Bloomberg.

“The largest cryptocurrency is likely to remain under pressure as perpetrators of the estimated more than $2 billion PlusToken scandal dump coins to cash out, the New York-based firm said Monday in the wake of a five-month investigation that continues to track the tokens as they filter through various blockchain ledgers. Bitcoin has tumbled almost 50% from its 2019 peak in late June, when Chinese authorities arrested multiple suspects in the pyramid scheme that promised returns as high as 600% and guaranteed that investors would be rewarded for inviting new members. Since that time, market observers have often pointed to possible sales tied to PlusToken suspects not in custody as one of many reasons for price declines.”

According to Chainalysis, PlusToken conspirators have already sold 25,000 bitcoins, and it’s believed another 20,000 (worth nearly $142 million at current prices). The coins are spread across some 8,700 anonymous bitcoin wallets.

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Fewer students, more debt. Number of male students plummets much faster than female. Does this look healthy to you?

College Enrollment Skids 8th Year in a Row, But Student Loans Skyrocket (WS)

With college costs blowing through the roof, with “luxury student housing” and not so luxury “student housing” having become asset classes – including, of course, CMBS, now in rough waters – for global investors, with textbook publishers gouging students to the nth degree, and with the monetary value of higher education questioned in more and more corners, the inevitable happened once again: College enrollment dropped for the eighth year in a row. The post-secondary student headcount – undergraduate and graduate students combined – in the fall semester of 2019 fell 1.3% from the fall semester last year, or by over 231,000 students to 17.97 million students, according to the Student Clearing House today. In the fall of 2011, the peak year, 20.14 million students had been enrolled. Since then, enrollment has dropped by 10.8%, or by 2.17 million students:

This is based on enrollment data submitted to the Student Clearing House by the schools. It does not include international students, which account for just under 5% of total student enrollment in the US. Duplicate headcounts – one student enrolled in two institutions – are removed from the data to eliminate double-counting. The 10.8% decline in enrollment since 2011 comes even as student loan balances have surged 74% over the same period, from $940 billion to $1.64 trillion:

[..] Women by far outnumbered men in total enrollment in the fall semester of 2019 with 10.63 million women enrolled and just 7.61 million men, meaning that overall there are now 40% more women in college than men: • At public four-year schools, there were 30% more women (4.51 million) than men (3.48 million) • At private non-profit four-year schools, there were 50% more women (2.32 million) than men (1.54 million) • At private for-profit four-year schools, there were more than twice as many woman (508,000) than men (241,000). • At public two-year schools, there were 38% more women (3.11 million) than men (2.26 million). Over the past three years, enrollment has declined for both men and women, but faster for men (-5.2%) than for women (-1.4%). Since 2011, enrollment has declined by 13% for men and by 9.4% for women.

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Estimates vary, but it appears that Europe’s total population in 1500 was some 60 million. North America’s was 50 million.

Erdogan Threatens To Recognise Killings Of Native Americans As Genocide (Ind.)

Turkish president Recep Tayyip Erdogan has threatened to recognise the killing of Native Americans at the hand of European settlers in a tit-for-tat attack on Washington’s decision to rebuke Ankara for the Armenian genocide. The US Senate voted in favour of recognising the genocide last week, a move initially stalled by Republicans at the urging of Donald Trump – who had been due to meet with the Turkish leader at the time. However, with the bill now passed, Mr Erdogan has threatened to respond by recognising US killings of Native Americans – saying the deaths of millions of indigenous people at the hands of European settlers should also be viewed as a genocide.

Speaking on the pro-government A Haber news channel, he said: “We should oppose [the US] by reciprocating such decisions in parliament. And that is what we will do. “Can we speak about America without mentioning [Native Americans]? It is a shameful moment in US history” Around 1.5 million ethnic Armenians were killed by modern-day Turkey’s predecessor, the Ottoman Empire, in the early 20th century. But Turkey denies the killings amounted to genocide, instead marking up the deaths of Armenians and Turks as the consequences of the ongoing war. It claims a lower death toll of hundreds of thousands. While the ramifications of the US legislation are largely symbolic, its timing and the targeting of a sore spot for the Turkish state have been seen by many as a direct challenge to the Middle Eastern country’s foreign policy.

A University College London team estimates that 55 million indigenous people died following the conquest of the Americas that began at the end of the 15th century. The majority of these deaths are believed to have been caused by disease – with indigenous people unable to build immunities to diseases that had never previously crossed over the Atlantic to the Americas. War, slavery and displacement also contributed to the decline of indigenous populations.

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Yes, Larry. Of course, Larry.

Kudlow: US-China Deal ‘Absolutely’ Done, US Exports To China Will Double (R.)

The so-called Phase One trade deal between Washington and Beijing has been “absolutely completed,” a top White House adviser said on Monday, adding that U.S. exports to China will double under the agreement. “They’re … going to double our exports to China,” National Economic Council Director Larry Kudlow told Fox News Channel. Under the trade agreement announced last week, Washington will reduce some tariffs on Chinese imports in exchange for Chinese purchases of agricultural, manufactured and energy products increasing by about $200 billion over the next two years.


While U.S. officials have touted the deal, Chinese officials have been more cautious, emphasizing that the trade dispute has not been completely settled. “Make no mistake about it: the deal is done, the deal is completed,” Kudlow later told reporters at the White House. “The deal is absolutely completed.” Asked if officials still planned to sign the deal the first week of January, Kudlow said: “That’s the hope.” Translations were still being worked out but he did not expect any changes to the final Phase One agreement, he added.

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“The Sacklers pocketed billions of dollars from Purdue while thousands of people died from their addictive drugs. This is the very definition of ill-gotten gains..”

“The company says the family may back out if lawsuits against family members are allowed to proceed.”

Put them in jail pending trial.

Sacklers Took $11 Billion Out Of Purdue Pharma As Opioid Crisis Worsened (AP)

The wealthy owners of OxyContin maker Purdue Pharma started taking far more money out of the company after it was fined for misleading marketing of the powerful prescription painkiller. A court filing made by the company Monday evening shows Purdue made payments totaling $10.7 billion from 2008 through 2017 for the benefit of members of the Sackler family who own the company. That includes taxes and other payments. Family members received $4.1 billion in cash over that period. By contrast, distributions for the benefit of family members from 1995 through 2007 totaled $1.3 billion. The total amount family members received from the company was made public in an October filing, but the new report offers new details on when the money was distributed.

“Today’s report confirms what we revealed in our lawsuit: The Sacklers pocketed billions of dollars from Purdue while thousands of people died from their addictive drugs. This is the very definition of ill-gotten gains,” Massachusetts’ Maura Healey, the first attorney general to sue Sackler family members, said in a statement. The Sacklers’ wealth has received intense scrutiny from Healey and 23 other states’ attorneys general, who are objecting to a plan to settle about 2,700 lawsuits against Purdue over the toll of opioids, including those filed by nearly every state.

The objecting attorneys general say that the settlement does not do enough to hold the family accountable for an opioid crisis linked to more than 400,000 deaths in the U.S. since 2000. The settlement calls for the family to contribute at least $3 billion in cash over time and give up control of the company. In all, the plan could be worth up to $12 billion over time. But the offer comes with a major catch: The company says the family may back out if lawsuits against family members are allowed to proceed. They are all on hold for now as the company’s settlement efforts play out in bankruptcy court.

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The Guardian reporting on Assange. Forever tainted.

Assange Extradition Fight Could Turn On Reports He Was Spied On For CIA (G.)

Julian Assange’s fight against extradition to the US could last years, and his argument could hinge on reports he has been illegally spied upon and his sensitive information given to the CIA. Meanwhile, more than 100 doctors from across the world have written to the Australian government, urging it to act and “protect the life of its citizen”, in a letter to be delivered to the foreign affairs minister on Tuesday, amid warnings Assange’s health continues to deteriorate. A judicial investigation by the Audiencia Nacional in Spain, the country’s national court, is acting on allegations that while Assange held asylum inside the Ecuadorian embassy in London, the Wikileaks founder was spied on, listened to and had his computer data scraped and that this information was sold to US intelligence agencies.

Speaking to the International Law Association in Sydney, Guy Goodwin-Gill, a professor of law at the University of New South Wales who has provided advice on asylum issues to the Assange legal team, said Assange’s fight against extradition would be a long contest and that allegations he was being spied on would likely form part of legal arguments he could not receive a fair trial in the US. Assange is currently being held in London’s Belmarsh prison, ahead of an extradition hearing that will begin in February. A US grand jury has indicted him on 18 charges – 17 of which fall under the Espionage Act – around conspiracy to receive, obtaining and disclosing classified diplomatic and military documents.

[..] medical doctors have banded together to urge authorities to halt any extradition plans, as well as urgently release him for medical care outside of the prison. “That we, as doctors, feel ethically compelled to hold governments to account on medical grounds speaks volumes about the gravity of the medical, ethical and human rights travesties that are taking place,” their letter, seen by the Guardian, states. “It is an extremely serious matter for an Australian citizen’s survival to be endangered by a foreign government obstructing his human right to health. It is an even more serious matter for that citizen’s own government to refuse to intervene, against historical precedent and numerous converging lines of medical advice.”

A group of Australian MPs from across party lines have gathered to discuss what can be done for Assange, with hopes of meeting with him in Belmarsh ahead of his extradition hearing.

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You’ve had many years to do this. Where were you?

Doctors Ask Government To Evacuate Assange To An Australian Hospital (SMH)

A group of doctors has asked Foreign Minister Marise Payne to evacuate Julian Assange to an Australian hospital amid claims the WikiLeaks founder’s health is rapidly deteriorating and that he “might die” in a London prison. Detailing allegations of “psychological torture” inflicted on Assange during efforts to extradite the 48-year-old to the United States, 100 medical doctors have urged Senator Payne and Prime Minister Scott Morrison to intervene. “It is an extremely serious matter for an Australian citizen’s survival to be endangered by a foreign government obstructing his human right to health,” the doctors say in a letter.

“It is an even more serious matter for that citizen’s own government to refuse to intervene, against historical precedent and numerous converging lines of medical advice. “Should Mr Assange die in a British prison, people will want to know what you, minister, did to prevent his death.” While the Australian government is highly unlikely to ask the UK government for permission to bring Assange home, there are concerns within some members of the Coalition about the asserted deterioration of his health in the months since he has been imprisoned in Belmarsh Prison on the outskirts of London. Doctors have said Assange is suffering from depression, dental issues and a serious shoulder ailment.

[..] “The term psychological torture is not a synonym for mere hardship, suffering or distress,” they said. “Psychological torture involves extreme mental, emotional and physical harm, which over time causes severe damage and disintegration of a number of critical psychological functions, involving emotions, cognitions, identity and interpersonal functioning.” They warned the physical effects of psychological torture caused susceptibility to a range of illnesses and diseases, including cancer and cardiovascular disease. “The potentially fatal medical consequences of prolonged psychological torture are inherently unpredictable, and could strike at any time. Accordingly, no doctor, no matter how senior, can offer any legitimate assurances regarding Julian Assange’s survival or medical stability while he continues to be held in Belmarsh Prison.”

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Dec 212018
 
 December 21, 2018  Posted by at 10:42 am Finance Tagged with: , , , , , , , , , , , , , , ,  12 Responses »


Pieter Bruegel the Elder Hunters in the snow 1565

 

Dow Drops 470 Points To 14-Month Low In Day 2 Of Big Losses After Fed Hike (CNBC)
As Fear Rises On Wall Street, Strategists Warn The Worst Is Yet To Come (CNBC)
US Defense Chief Mattis Quits As Trump Pulls From Syria, Afghanistan (AFP)
House Passes Spending Bill With Border Wall Money, Senate Showdown Next (CNBC)
China Denies ‘Slanderous’ Economic Espionage Charges From US Allies (R.)
Russian Media Regulator Starts Checking Legality Of BBC’s Operations (R.)
Gatwick Runway Reopens After Days Of Drone Disruption (G.)
There’s A National Emergency All Right – But It Isn’t Brexit (G.)
Germany’s Hidden Crisis – Social Decline In The Heart Of Europe (G.)
Malaysia Seeks $7.5 Billion In Reparations From Goldman Sachs Over 1MDB (R.)
Singapore Said To Expand 1MDB Criminal Probe To Include Goldman Sachs (BBG)
Carlos Ghosn Re-Arrested On New Charges In Japan (BBC)
New Tree Species Became Extinct Before It Was Named (Ind.)

 

 

Jay Powell pricks the bubbles. Painful and inevitable. But if he ever decides to lower rates again next year, look for the bubbles to return. That’s his dilemma.

Dow Drops 470 Points To 14-Month Low In Day 2 Of Big Losses After Fed Hike (CNBC)

U.S. stocks swooned for a second day Thursday after the Federal Reserve raised benchmark interest rates and said that it would continue to let its massive balance sheet shrink at the current pace. Fears of a government shutdown also sent stocks tumbling to new lows Thursday afternoon. The Dow Jones Industrial Average fell 464.06 points to 22,859.6, bringing its two-day declines to more than 800 points and its 5-day losses to more than 1,700 points. The S&P 500 fell 1.5 percent to finish at 2,467.41 as technology stocks underperformed. The Nasdaq Composite fell 1.6 percent and closed at 6,528.41, briefly dipping into bear market territory amid big losses in Amazon and Apple.

The Nasdaq is 19.7 percent below its recent high. Companies in the S&P 500 have lost a total of $2.39 trillion in market cap this month. The Cboe Volatility Index — one of the market’s best gauges of marketplace fear — rose above 30. The Dow and Nasdaq posted their lowest closes since October 2017, while the S&P 500 finished at its lowest level since September 2017. The Dow and S&P 500, which are both in corrections, are on track for their worst December performance since the Great Depression in 1931, down more than 10 percent each this month. The S&P 500 is now in the red for 2018 by 7.7 percent.

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Yeah, all these experts. Who cares? There’s not nearly enough fear yet.

As Fear Rises On Wall Street, Strategists Warn The Worst Is Yet To Come (CNBC)

“The market’s in no man’s land,” said Peter Boockvar, chief investment strategist at Bleakley Advisory Group. Stocks have broken through the lows of the year, and technicians are scurrying to find the next support levels. On the S&P 500, he said 2,400 is a potential psychological area of support. The market plunged Thursday against the backdrop of a congressional feud with the White House over a continuing budget resolution, but the markets were more focused on the worries that have been festering over global growth and the potential for recession. “You can guarantee if the government shuts down it’s going to very soon reopen,” said Boockvar.

“This could be a carry through from yesterday, that’s legitimate. The problem now is this is the first time in years in this bull market that people are doing tax-loss selling. That’s helping to exaggerate the move. You’re also having redemptions.” Since the Fed announced its rate hike Wednesday, the Dow was down 815 points. The sharp drop in stocks since early October was unexpected and even more crushing recently, since December is typically a positive time for stocks. The 10 percent decline so far in the S&P 500 is its worst December performance since 1931. If it remains this way, it would the first time ever that December is the worst month of the year for the index.

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Have all those people who now say Mattis is the wisest and most balanced in the White House, forgotten why he’s called Mad Dog?

US Defense Chief Mattis Quits As Trump Pulls From Syria, Afghanistan (AFP)

US Defense Secretary Jim Mattis resigned Thursday, leading a chorus of protests at home and abroad after President Donald Trump ordered a complete troop pullout from Syria and a significant withdrawal from Afghanistan. Trump steadfastly defended his sudden push for retrenchment, vowing that the United States would no longer be the “policeman of the Middle East” and saying the 2,000-strong US force in Syria was no longer needed as the Islamic State group had been defeated. Mattis, a battle-hardened retired four-star general seen as a moderating force on the often impulsive president, made little attempt to hide his disagreements with Trump.

“Because you have the right to have a secretary of defense whose views are better aligned with yours,” Mattis said in a letter to Trump, “I believe it is right for me to step down from my position.” Mattis hailed the coalition to defeat Islamic State as well as NATO, the nearly 70-year-old alliance between North America and Europe whose cost-effectiveness has been questioned by the businessman turned president. “My views on treating allies with respect and also being clear-eyed about both malign actors and strategic competitors are strongly held and informed by over four decades of immersion in these issues,” Mattis wrote. One day after the surprise announcement on Syria, a US official told AFP that Trump had also decided on a “significant withdrawal” in a much larger US operation – Afghanistan.

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No government into Christmas?

House Passes Spending Bill With Border Wall Money, Senate Showdown Next (CNBC)

The House passed a temporary spending bill Thursday with money for President Donald Trump’s proposed border wall, further muddying the scramble to dodge a partial government shutdown by Friday. The chamber approved the measure to keep the government running into February by a 217-185 vote. But the path forward now is murky. The bill likely will not clear the Senate because it includes more than $5 billion for the border barrier, increasing the chances that funding for seven agencies lapses after the midnight Friday deadline. Senators were told Thursday to prepare for potential votes Friday. The chamber convenes at noon. The Senate unanimously approved a bill Wednesday night to keep the government running through Feb. 8 — without border wall money.

Trump insisted Thursday that he would not sign it. It forced House Republicans to include the wall money in the new bill. Both House Minority Leader Nancy Pelosi and Senate Minority Leader Chuck Schumer have flatly said congressional Democrats will not approve wall money. As Republicans need Democratic votes to pass spending legislation in the Senate, a partial shutdown is all but assured if the GOP insists on funding for the barrier. It is unclear if Republicans will abandon that goal in an effort to keep the government running past Friday. During a televised Oval Office fracas last week, Pelosi challenged Trump by saying he did not have the votes for wall money in the House. It turns out he did.

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We can do it, but they can’t.

China Denies ‘Slanderous’ Economic Espionage Charges From US Allies (R.)

China’s Foreign Ministry said on Friday it resolutely opposed “slanderous” accusations from the United States and other allies criticizing China for economic espionage, urging Washington to withdraw its accusations. The United States should also withdraw charges against two Chinese citizens, the ministry said, adding that China had never participated in or supported any stealing of commercial secrets and had lodged “stern representations” with Washington. “We urge the U.S. side to immediately correct its erroneous actions and cease its slanderous smears relating to internet security,” it said, adding that it would take necessary measures to safeguard its own cybersecurity and interests.

It has long been an “open secret” that U.S. government agencies have hacked into and listening in on foreign governments, companies and individuals, the ministry added. “The U.S. side making unwarranted criticisms of China in the name of so-called ‘cyber stealing’ is blaming others while oneself is to be blamed, and is self-deception. China absolutely cannot accept this.” U.S. prosecutors indicted two Chinese nationals linked to China’s Ministry of State Security intelligence agency on charges of stealing confidential data from American government agencies and businesses around the world. Prosecutors charged Zhu Hua and Zhang Shilong in hacking attacks against the U.S. Navy, the space agency NASA and the Energy Department and dozens of companies. The operation targeted intellectual property and corporate secrets to give Chinese companies an unfair competitive advantage, they said.

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More of the same: We can do it, but they can’t. The west wants to blame RT for all sorts of stuff beacuse that fits the Russophobe narrative.

Russian Media Regulator Starts Checking Legality Of BBC’s Operations (R.)

Russia’s media regulator said on Friday it would carry out checks to determine if the BBC World News channel and BBC internet sites complied with Russian law, a move it described as a response to British pressure on a Russian TV channel. Roskomnadzor, the regulator, said in a statement its checks were Russia’s response to a decision by British media regulator Ofcom, which on Thursday said that Russian broadcaster RT had broken impartiality rules in some of its news and current affairs programs. “The results of our check will be announced separately,” the Russian regulator said. Ofcom said on Thursday it was considering imposing some kind of sanction on RT, which is financed by the Russian state.

It took issue in particular with its coverage of the poisoning in Britain of former Russian spy Sergei Skripal and his daughter. Britain has accused agents working for Russia’s military intelligence agency, the GRU, of committing the crime, an allegation Moscow denies. British Media Secretary Jeremy Wright also weighed in on Thursday, saying what he called RT’s mask as an impartial news provider was slipping. RT rejected Ofcom’s findings, saying Ofcom had ignored its explanations and not paid “due regard” to its rights. Commenting on the launch of the Russian investigation on Friday, Margarita Simonyan, RT’s editor-in-chief, said on Twitter that Ofcom had hinted that it planned to strip her channel of its broadcasting license in Britain. “(Welcome to the) brave new world,” she wrote.

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Days of panic due to one or two drones, at an airport that has just one runway to begin with?!

Gatwick Runway Reopens After Days Of Drone Disruption (G.)

The first flights have resumed at Gatwick airport after a series of drone sightings caused days of disruption, affecting more than 100,000 passengers. Airlines warned customers to continue to check their flight’s status on Friday morning as the airport worked to “introduce a limited number of flights over the coming hours”. The runway had remained closed throughout Thursday night, forcing passengers to search for accommodation or shelter at the airport, and bringing demands for new aviation regulations to tackle the threat. The airport’s chief operating officer, Chris Woodroofe, said 120,000 passengers’ flights had been disrupted by the incident.

On Thursday night police said there had been more than 50 sightings of the drone in 24 hours from when the runway was first closed. Night-flight restrictions had been lifted at other airports, so “more planes could get into and out of the country”, the transport secretary, Chris Grayling said. “This is clearly a very serious ongoing incident in which substantial drones have been used to bring about the temporary closure of a major international airport,” he said. “The people who were involved should face the maximum possible custodial sentence for the damage they have done. The government is doing everything it can to support Sussex police.”

Shooting down the drone was being considered as a “tactical option” after other strategies to stop it had failed. Amid disbelief that the drone incident could be enough to bring one of the UK’s key airports to a standstill, the perpetrator or perpetrators eluded a search conducted by 20 units from two police forces in the surrounding area.

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Britain just stumbles from crisis to crisis, hidden from view by discussions about someone saying Stupid Woman.

There’s A National Emergency All Right – But It Isn’t Brexit (G.)

[..] there is a world beyond Brexit. True, it lacks the frenzied drama of cabinet walkouts, prime ministerial straw-clutching or humiliation served cold in Brussels. But things still happen – it’s just that they haven’t won much attention. It has been a good month to bury bad news. So allow me to disinter some of the headlines deep inside the newspapers. Since we’re counting small things, let’s start with children. Last week it was reported that a primary school in Great Yarmouth had opened its own food bank. It was launched by the headteacher, Debbie Whiting, after she saw pupils under 11 so hungry they were stealing from others’ lunchboxes.

This week, more than half of teachers surveyed by the National Education Union expressed fears that some of their kids won’t have enough to eat this Christmas. They reported a boy turning up wearing his trousers back to front, in order to hide the holes in the knees, and a class where one in three children sleep in their uniforms because they have no pyjamas. If anything qualifies as a national emergency, it should be this. A new generation growing up without adequate food and clothing ought to be leading TV bulletins and shaming government ministers into action. What dominates instead is blue-on-blue match commentary, because Jacob Rees-Mogg is box office while poor people can be slipped in just before the “And finally”.

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“..of all German women in work only one in three earns the minimum wage…”

Germany’s Hidden Crisis – Social Decline In The Heart Of Europe (G.)

The cover of Oliver Nachtwey’s book depicts a VW Beetle, emblem of Teutonic manufacturing prowess since Hitler’s day, driving off a cliff. Is the country that got used to imposing its values on feebler client nations – bailing out southern Europeans with their oversized public sectors, rampant tax avoidance and long lunches – in trouble? The Germany described by this Frankfurt School professor is a basket case – post-growth, post-democratic, with the first fascists in the Bundestag since the Third Reich. Despite being Europe’s richest country, it has higher numbers of working poor than any other EU state; almost one in four of its workers is paid less than the €9.30 (£8.40) minimum wage, many requiring state support.

Sociologist Ulrich Beck in the giddy 1980s called Germany an elevator society, in which millions of skilled workers upgraded from VWs to Audis and expected their children to rise still further in social status and wealth. The elevator may have seized up for a while after reunification, but only five years ago Germany seemed unstoppable. Every German, Beck thought, was in the same lift. No longer. Not only has downward mobility become more evident but the poor get poorer, the rich get richer, the older get tenure, the younger join the precariat. Sure, greater equality of opportunity means more women work than ever before, but of all German women in work only one in three earns the minimum wage.

“So while German women are more equal in terms of rights, inequality between women has never been greater than it is today,” Nachtwey argues. This is symptomatic of what he calls regressive modernisation and of the following paradox: “The more a society is based on equality of opportunity, the more unequal it becomes, and the more legitimate its inequalities”. Legitimate? The losers are perceived to be those who deserve to lose, the winners those who deserve to win. And the losers are the usual suspects – women, immigrants, those who have no qualifications. A Germany that once prided itself on social mobility, and whose sociologists once crazily imagined class distinctions were over, has become, in terms of class, as sclerotic as Britain.

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There’s a class action case looming as well.

Malaysia Seeks $7.5 Billion In Reparations From Goldman Sachs Over 1MDB (R.)

Malaysia is seeking US$7.5 billion in reparations from Goldman Sachs over its dealings with scandal-linked state fund 1MDB, the Financial Times reported on Friday (Dec 21), citing the country’s finance minister. Malaysian prosecutors this week filed charges against Goldman Sachs in connection with its role as underwriter and arranger of three bond sales that raised US$6.5 billion for 1Malaysia Development Berhad (1MDB), the first criminal action against the US bank over the scandal. Goldman Sachs has consistently denied wrongdoing and said certain members of the former Malaysian government and 1MDB lied to the bank about the proceeds of the bond sales.

In addition to the bonds’ total value, Goldman Sachs should also return US$1 billion to cover US$600 million in fees paid to the bank and bond coupons that were “higher than the market rate”, the FT quoted Malaysian finance minister Lim Guan Eng as saying. The three 10-year bonds carried coupons ranging from 4.4 per cent to 5.99 per cent. Lim also told the FT that reparations should at least be more than US$1.8 billion, the sum Goldman Sachs has told investors it had set aside to cover potential losses related to 1MDB legal proceedings. “Their figure is US$1.8 billion. Ours is US$7.5 billion,” Lim said. Goldman Sachs told the FT: “The 1MDB bond offerings were meant to raise money to benefit Malaysia; instead, a huge portion of those funds were stolen for the benefit of members of the Malaysian government and their associates.”

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The squid screwed up royally. But no-one at Goldman will be arrested.

Singapore Said To Expand 1MDB Criminal Probe To Include Goldman Sachs (BBG)

Singapore has expanded a criminal probe into fund flows linked to scandal-plagued 1MDB to include Goldman Sachs, which helped raise money for the entity, people with knowledge of the matter said. Police in the city-state had been examining Goldman’s relationship with the Malaysian state investment company since at least late 2017, but until recently, the firm’s local unit itself wasn’t a focus of any investigation, said the people, asking not to be named discussing sensitive information.

Authorities are trying to determine whether some of the roughly $600 million in fees from the three bond deals Goldman arranged for 1MDB from 2012 to 2013 flowed to the Singapore subsidiary, they said. Singapore’s widened probe opens a potential new battle front for Goldman, less than a week after Malaysia filed the first criminal charges against the firm over a relationship that spawned one of the biggest scandals in its history. Singapore is coordinating closely with the U.S. Justice Department, which is also investigating Goldman and has filed criminal charges against two former senior bankers at the firm, the people said.

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He’s been at it for a while: “..prosecutors now accuse Mr Ghosn of shifting a private investment loss of over $16m onto Nissan in the wake of the 2008 financial crisis.”

Carlos Ghosn Re-Arrested On New Charges In Japan (BBC)

Former Nissan chairman Carlos Ghosn has been re-arrested on fresh charges, Japanese media report, dashing any hopes he could be released on bail. Mr Ghosn has spent the last month in prison, accused of misusing funds and hiding $80m of income. But on Thursday a court rejected a request by the prosecution to extend his detention, which meant he could apply to be released on bail. Friday’s arrest is on a new charge of aggravated breach of trust. According to Japanese broadcaster NHK, prosecutors now accuse Mr Ghosn of shifting a private investment loss of over $16m onto Nissan in the wake of the 2008 financial crisis.

A towering and revered figure in the auto industry, Mr Ghosn has not yet responded to the latest allegation – but he has consistently denied all prior accusations made against him. He was first arrested in Tokyo in November as allegations of financial misconduct surfaced. The BBC’s Mariko Oi says that ever since Carlos Ghosn stepped off his private jet only to be taken into police custody, the case has gripped Japan with speculation rife over what could be behind such a stunning fall from grace. The case has been highly unusual – not least for a high profile chief executive to be spending time in jail – but also because of its legal twists such as yesterday’s when the court rejected an application to extend his detention..

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Animal species are much easier to worry over. Maybe that’s not all that smart.

“..at least six other studies failed to turn up any sign that the tree still exists. Tens of thousands of plant species globally face similar risks.”

New Tree Species Became Extinct Before It Was Named (Ind.)

Scientists have identified a new species of tree that is thought to have become extinct before it was even named. The tree, which has now been called Vepris bali, is believed to have been unique to a forest reserve in west Africa, but forest clearing and agricultural development have wiped it out. Scientists are studying the vepris species for the antimicrobial and antimalarial properties of their essential oils. Researchers hope several other vepris trees will be identified and named in Cameroon before they also disappear. A specimen was collected by a forester, Edwin Ujor, in the Bali Ngemba Forest Reserve in Cameroon in 1951.

The specimen was thought to belong to the genus vepris, which has 80 species, mostly found across Africa. But the tree has not been seen anywhere since. Researchers from the Royal Botanic Gardens, Kew, and the country’s University of Yaoundé I examined the original specimens and used molecular phylogenetic studies to identify the new species. They say the tree is now either critically endangered or already extinct.

Repeated efforts to find the species between 2000 and 2004 and at least six other studies failed to turn up any sign that the tree still exists. Tens of thousands of plant species globally face similar risks. According to the International Plant Names Index, only about 5 per cent of all known species have ever been formally assessed for their extinction risk. The authors wrote: “This makes it a priority to discover, document and protect such species before they become globally extinct.” The Bali Ngemba Forest Reserve, an officially protected forest, is part of the Bamenda highlands, an area so denuded of its natural forest vegetation that it is now known in Cameroon as “the grasslands”.

Read more …

Feb 122018
 
 February 12, 2018  Posted by at 10:46 am Finance Tagged with: , , , , , , , , , , ,  4 Responses »


Camille Corot The Burning of Sodom (formerly “The Destruction of Sodom”) 1843 and 1857

 

Rising Debt + Rising Rates (Northman)
Last Week’s ‘Volocaust’ “Just An Appetizer” – Cole (ZH)
Why People Who Make Money Are Usually Wrong – Taleb (ZH)
‘Big Shakeout Coming’: Bridgewater Sounds Warning (G.)
History Suggests The Correction Isn’t Nearly Over (MW)
Interest Rate Rise Would Hit Millions In UK Who Depend On Cheap Credit (G.)
May Starts Drive to End the Conservative Civil War Over Brexit (BBG)
China Enters The Graveyard Of Empires (Escobar)
China Pledges ‘Employment First’ Policies To Create Millions Of Jobs (R.)
Party On, Dudes (Jim Kunstler)
Oxfam Faces Losing Funding As Crisis Grows Over Abuse Claims (G.)
Oxfam Reels From Prostitution Scandal (G.)
The UK’s Hidden Role In Assange’s Detention (Cook)

 

 

Ultra low rates but ultra high payments.

Rising Debt + Rising Rates (Northman)

“Interest On The Debt Will Be The Fastest Growing Part Of The Federal Budget…By Far. Forget Medicare, Social Security and the Pentagon: $1 trillion-plus deficits means massive increases in the national debt and that debt will have to be borrowed at higher interest rates. Add the need for the Treasury to roll-over existing debt at higher and higher rates and you get an immediate increase in the amount the U.S. will need to spend on interest each year.” Watch this space:

Some people may argue that tax cuts will bring in so much economic growth it will all pay for itself. There is precisely zero evidence for such an assertion:

If you know your tax cut history you know where in the chart above major tax cuts were passed. The debt continued to rise and will continue to rise as spending continues to be expanded. But here’s the kicker: Never in modern times have we seen tax cuts being implemented and spending increased with debt to GDP north of 100%:

Many corporations are drowning in debt, as are consumers, and so are their interest payments:

People invariably argue and say: Yea well, but as a percent of disposable income it’s not so bad. Yes, it’s called artificial low rates, they can mask a lot, but what is currently the situation is not the point, it’s sustainability of debt loads in the very immediate future. As you saw in the above data we are already seeing a vast increase in interest payments despite rates having barely moved off of the historic zero bound line. “As for total debt, the CBO last predicted borrowings of $25.5 trillion by 2027. According to Riedl, the tax cuts, new discretionary outlays and additional interest on the extra spending could add $5 trillion to that number, bringing the total of $30 trillion. That’s 107% of the national income estimate projected by the CBO.

The scariest unknown is what happens to interest expense. At $25.5 trillion, the CBO forecasts outlays for interest of $818 billion in 2027. Going to $30 trillion will raise the load to over $1 trillion. One dollar in seven in spending would be going to interest, versus one in 15 today. And that scenario assumes that the yield on the 10-year Treasury increases to just 3.5% over the next decade, far below its historic average. “If rates go to their average in the 1990s,” warns Riedl, “the deficit will go not to $2 trillion, but to between $2.5 and $3 trillion.”

Read more …

“..the VIX ETPs are only 5 billion dollars. You have 1.5 trillion of implicit short-volatility strategies..”

Last Week’s ‘Volocaust’ “Just An Appetizer” – Cole (ZH)

While Cole is happy to accept the back-patting and congratulations for having foretold in near-perfect detail the dynamics that would drive this week’s volatility explosion, those who read our piece summarizing Cole’s (uncannily well-timed) interview two weeks ago will remember that short-vol ETPs like XIV represent only a fraction of the collective $2 trillion short-gamma position that touches nearly every corner of the market. Other components of what calls the ‘implicit’ gamma short – which we’ve touched on this week – include $600 billion invested in risk-parity strategies, $400 billion in volatility-control funds. And $250 billion of risk premium strategies… Rather than buy the dip, Cole ominously warned that it’s more likely this is the beginning of a much larger selloff. Or, as Kevin Spacey’s character put it in the movie “Margin Call”, because of vulnerabilities related to the market’s massively short gamma positioning, “there will be turmoil in the markets for the foreseeable future.”

Everyone talks – congratulations about calling this. Well, I don’t think what I’ve really talked about has come to pass yet. The VIX ETPs are the smallest portion of the global short-vol trade. Talk about this idea of about 1.5 to 2 trillion dollars’ worth of short-vol exposure, both explicit and implicit. Explicit short volatility are VIX exchange-rated products and vol overwriting funds. You know, the VIX ETPs are only 5 billion dollars. You have 1.5 trillion of implicit short-volatility strategies, strategies that may not be directly shorting options, but use financial engineering to mimic the components of a short-option portfolio. About 1.5 trillion dollars’ worth of these, of exposure, this is what we’re seeing come online now.

This is the real risk. So stocks and bonds sell off together. You have disorderly unwind withdrawal of liquidity. And then, all of a sudden, increasing volatility results in a quick deleveraging of these implicit short-volatility strategies. And this will drive the next leg of the crisis. So, people say congratulations, you called the short-vol trade. No, nothing has happened yet. This is an appetizer. This is just the appetizer for the unwind that is about to come. I think this is what people should be really afraid of, and I think this is the next leg of this that we will see. Whether this happens in two weeks or whether this happens over two years, I don’t know. But I strongly believe this will come to pass. And it will be quite disorderly and ugly.

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Practice and theory.

Why People Who Make Money Are Usually Wrong – Taleb (ZH)

Echoing Mark Spitznagel’s insights into how ‘naiveté’ led to the epic losses experienced by many ‘nickel-picker-uppers’ this week in the short-vol game, Nassim Taleb takes to YouTube to provide some more color on the fallacy of forecasting and what destroyed XIV traders. Taleb begins by noting that “many people attempted to profit by forecasting volatility [would drop] and from the fact that the contract [in this case XIV] was poorly constructed… they were right, until they were destroyed.” Academics cannot get the idea that you don’t have to be right about the world to make money.

“Antifragile explains why understanding x is different from f(x) the payoff or exposure from x. Most of the harm/gains come from f(x) being convex or concave, not from understanding x. Forecasting is off an average, and average is for academics and other morons.” As Valuewalk’s Jacob Wolinsky writes, this video illustrates the point with XIV that went bust while being correct about volatility –and why people who make money are usually wrong.

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Has Pandora’s box been opened?

‘Big Shakeout Coming’: Bridgewater Sounds Warning (G.)

Financial markets are braced for more volatility this week amid predictions from the world’s biggest hedge fund that a “big shakeout” is coming. The Australian stock market was the first to test the water on Monday morning and one point was down 0.7%. But it rallied slightly in afternoon trade to close down 0.3%. Bourses elsewhere in Asia Pacific also found calmer waters. South Korea’s Kospi was up 0.9% while Hong Kong put on 0.8%. The Nikkei in Japan was closed for a holiday. The FTSE100 is London is due to open up 1.25% according to futures trading, while the Dow Jones average on Wall Street is set to rise 0.7%. Last week saw $4tn wiped off the value of shares around the world and the US market entered into an official correction after falling more than 10% from its record level in January.

Wall Street staged a late rally on Friday as the Dow Jones finished 330 points higher and the closely watched Vix index, or “fear index”, has dropped four points to 29 on Monday from 33 on Friday. But Bob Prince, co-chief investment officer at the $160bn US hedge fund Bridgewater, told the Financial Times on Monday (paywall): “There had been a lot of complacency built up in markets over a long time, so we don’t think this shakeout will be over in a matter of days. “We’ll probably have a much bigger shakeout coming.” David Bassanese, the chief economist at BetaShares Capital in Sydney, said in a note on Sunday that despite the big falls last week, the selling could continue. “History suggests the depth of corrections – assuming the underlying bull market persists – don’t usually get beyond 15%, so there’s certainly some scope for market weakness before a bottom is reached,” he said.

Investors would be jittery about US inflation figures on Wednesday, he said. The market was forecasting a “fairly benign” 1.7% annual prices growth, but anything above that was likely to result in more stock losses. Chris Weston at online trader IG said on Monday: “A massive buildup in market leverage has been partially unwound in the blink of an eye and what started as systematic funds selling out of equity and futures positions, as implied volatility headed higher, has morphed into something far more broad-based incorporating many other market participants.”

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“..the median decline for the S&P in a correction is 16.4%, and the median length of a pullback is 64 days..”

History Suggests The Correction Isn’t Nearly Over (MW)

Perhaps the biggest question on Wall Street right now is whether the recent pain in the U.S. stock market is over. If history is any indication, the answer is no. Both the Dow Jones Industrial Average and the S&P 500 entered correction territory on Thursday, defined as a 10% drop from a recent peak—in this case, record highs that were hit in late January. According to Bespoke Investment Group, which analyzed the 95 corrections the S&P has seen since 1928, investors might want to brace themselves for more pain.

Per Bespoke’s data, the median decline for the S&P in a correction is 16.4%, and the median length of a pullback is 64 days. Were the S&P to hit that median in the current selloff, it would bottom around 2,400, or roughly 7.8% below current levels. “Keep in mind, though, that these are median levels. There have been a number of corrections (13) that saw declines of less than 11%, while several saw deeper declines of more than 20%,” the research group wrote in a blog post. A decline of 20% would put the index into bear-market territory, where nearly one-fifth of S&P components currently trade. “In terms of length, prior corrections have also been all over the map. Some have lasted as little as three days, while others have stretched on for well over a year.”

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It will hit millions everywhere.

Interest Rate Rise Would Hit Millions In UK Who Depend On Cheap Credit (G.)

The Bank of England’s warning that it plans to raise interest rates from as early as May will hit millions of low-income families who have only survived financially for a decade by using cheap credit. The Resolution Foundation said almost half of low-income families were in debt distress before Threadneedle Street said last week that it needed to increase the base rate at an accelerated pace over the next two years. The Bank governor, Mark Carney, said the strength of the economy warranted higher borrowing costs. He cited rising average wages and resilient GDP growth as reasons to begin pushing interest rates from the historically low level of 0.5%.

But a study by the foundation showed the proportion of households in some form of debt distress rose to 45% among the poorest fifth of working age households, with more than a third experiencing difficulty in paying for accommodation and one in six in arrears on either their mortgage or consumer debts. Households headed by someone aged 25-34 spent nearly £1 in every £5 of their pre-tax income on debt repayments in 2017, compared with 20p for households aged 65 and over. Levels of consumer credit have soared in recent years to more than £200bn, prompting debt charities to warn that lenders are repeating the mistakes made in the early part of the century, when households on low incomes were sold loans they could not repay.

Matt Whittaker, the chief economist at the Resolution Foundation, said most of the increase in consumer debt since 2014 was among middle and higher income groups and they could afford to absorb an increase in interest rates. The cost of servicing Britain’s household debt is low by historical standards, he said, with repayments accounting for 7.7% of disposable income, well below the 12.3% recorded just before the financial crisis, and in line with the level seen during the mid-1990s and early 2000s. “However, while the recent growth in debt is less of a concern, it is very worrying that almost half of low-income families are already showing signs of debt distress,” Whittaker said. “While rates have been at historic lows for a decade now, many families have experienced a tight income squeeze over this period and have not been able to get back on the front foot when it comes to servicing their debts.”

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Yawn.

May Starts Drive to End the Conservative Civil War Over Brexit (BBG)

U.K. Prime Minister Theresa May embarks this week on a determined push to bring her divided Cabinet together and come up with a Brexit plan. As European negotiators show increasing signs of impatience, senior U.K. ministers are preparing to deliver a series of speeches in the coming weeks setting out a vision of life outside the European Union. They’ll culminate with an address by May. Dubbed a “Road Map to Brexit,” the schedule begins on Wednesday when Foreign Secretary Boris Johnson issues an appeal to both sides of the Brexit debate. May is expected to offer a new security relationship three days later when she addresses a conference in Munich. Also scheduled to make speeches are Brexit Secretary David Davis, Trade Secretary Liam Fox, and Cabinet Office Minister David Lidington.

Absent, however, is Chancellor of the Exchequer Philip Hammond, who enraged Brexit supporters in January by suggesting Britain would see only “very modest” changes to its relationship with the EU once it leaves the bloc. May has ordered key ministers to attend an “away day” at Chequers, the prime ministerial country retreat outside London, after two meetings to find a joint position on Brexit ended without agreement last week. With just 13 months to go before Britain exits the EU, the ruling Conservatives are mired in a civil war between those who want to retain close ties to the bloc and hard-liners demanding a clean break, including total withdrawal from the EU single market and the customs union. On Friday, Michel Barnier, the EU’s chief Brexit negotiator, expressed his exasperation by warning that the post-Brexit bridging period that once seemed a certainty “is not a given,” prompting investors to sell the pound.

Businesses have said they’ll start to activate contingency plans to move jobs and operations out of the U.K. unless a transition deal is nailed down by the end of March. In her speech to cap off the “Road to Brexit” push — the date of which hasn’t been announced — May will set out the government’s “ambitions for Britain’s partnership with the EU after we have left.” It will be her third major address, following her Lancaster House speech in January last year and her Florence speech in September. “Brexit is a defining moment in the history of our nation,” May’s office said in a statement. “We will be forging an ambitious new partnership with Europe and charting our own way in the world to become a truly global, free-trading nation.”

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Afghanistan is like a Bermuda triangle.

China Enters The Graveyard Of Empires (Escobar)

The latest plot twist in the endless historical saga of Afghanistan as a graveyard of empires has thrown up an intriguing new chapter. For the past two months, Beijing and Kabul have been discussing the possibility of setting up a military base alongside Afghanistan’s border with China. “We are going to build it [the base] and the Chinese government has committed to help financially, provide equipment and train Afghan soldiers,” Mohammad Radmanesh, a spokesman for the Afghan Ministry of Defense, admitted to the AFP. On the record, the Chinese Foreign Ministry only admitted that Beijing was involved in “capacity-building” in Afghanistan, while NATO’s Resolute Support Mission, led by the United States, basically issued a “no comment.”

The military base will eventually be built in the mountainous Wakhan Corridor, a narrow strip of territory in northeastern Afghanistan that extends to China and separates Tajikistan from Pakistan. It is one of the most spectacular, barren and remote stretches of Central Asia and according to local Kyrgyz nomads, joint Afghan-Chinese patrols are already active there. True to Sydney Wignall’s fabled Spy on the Roof of the World ethos, a great deal of shadow play is in effect. Apparently, this is basically about China’s own war on terror. Beijing’s strategic priority is to prevent Uyghur fighters of the East Turkestan Islamic Movement (ETIM), who have been exiled in Afghanistan, crossing the Wakhan Corridor to carry out operations across Xinjiang, an autonomous territory in northwest China.

There is also the fear that ISIS or Daesh jihadis from Syria and Iraq may also use Afghanistan as a springboard to reach the country. Even though the jihad galaxy may be split, Beijing is concerned about ETIM. As early as September 2013, the capo of historic al-Qaeda, Ayman al-Zawahiri, supported jihad against China in Xinjiang. Later, in July 2014, Abu Bakr Al-Baghdadi, the leader of Daesh said: “Muslim rights [should be] forcibly seized in China, India and Palestine.” Then, on March 1, 2017, Daesh released a video announcing its presence in Afghanistan, with the terror group’s Uyghur jihadis vowing, on the record, to “shed blood like rivers” in Xinjiang. At the heart of the matter is China’s Belt and Road Initiative, or the New Silk Road, which will connect China with Asia, Africa, the Middle East and Europe.

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Empty politics.

China Pledges ‘Employment First’ Policies To Create Millions Of Jobs (R.)

China will boost its job creation effort and promote entrepreneurship this year, a spokeswoman for the top state planner said on Sunday, under pressure to find work for millions of unemployed people and new college graduates. Meng Wei of the National Development and Reform Commission (NDRC) said China needs to create jobs for 9.7 million people registered as unemployed and 8.2 million new college graduates, as well as workers affected by industrial capacity cuts. China’s urban-registered unemployment rate fell to 3.9 percent last year and has remained generally stable despite slowing economic growth and the government forging ahead with plans to cut back industrial capacity.

Many analysts say, however, that the official data is an unreliable indicator of employment conditions because it only measures employment in urban areas and does not take into account the millions of migrant workers who form the bedrock of China’s labour force. “We will implement an employment-first strategy and more proactive employment policies…and vigorously promote employment and entrepreneurship,” Meng told a news conference on Sunday, adding that protecting jobs was fundamental to China’s stable growth policy. Authorities are counting on “new growth engines” such as technology and services to support job creation. Meng said China will create a policy environment that supports the digital economy and will promote the big data, artificial intelligence and industrial internet sectors.

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QE bankrolls the house.

Party On, Dudes (Jim Kunstler)

In June of 2008, US crude hit $144-a-barrel, a figure so harsh that it crippled economic activity — since just about everything we do depends on oil for making, enabling, and transporting stuff. The price and supply of oil became so problematic after the year 2000 that the US had to desperately engineer a work-around to keep this hyper-complex society operating. The “solution” was debt. If you can’t afford to run your society, then try borrowing from the future to keep your mojo working. The shale oil industry was a prime beneficiary of this new hyper-debt regime. The orgy of borrowing was primed by Federal Reserve “creation” of trillions of dollars of “capital” out of thin air (QE), along with supernaturally low interest rates on the borrowed money (ZIRP). The oil companies were desperate in 2008. They were, after all, in the business of producing… oil! (Duh….) — even if a giant company like BP pretended for a while that its initials stood for “Beyond Petroleum.”

The discovery of new oil had been heading down remorselessly for decades, to the point that the world was fatally short of replacing the oil it used every year with new supply. The last significant big fields — Alaska, the North Sea, and Siberia — had been discovered in the 1960s and we knew for sure that the first two were well past their peaks in the early 2000s. By 2005, most of the theoretically producible new oil was in places that were difficult and ultra-expensive to drill in: deep water, for instance, where you need a giant platform costing hundreds of millions of dollars, not to mention armies of highly skilled (highly paid) technicians, plus helicopters to service the rigs. The financial risk (for instance, of drilling a “dry hole”) was matched by the environmental risk of a blowout, which is exactly what happened to BP’s 2010 Deepwater Horizon platform in the Gulf of Mexico, with clean-up costs estimated at $61 billion.

[..] The shale oil companies could get plenty of cash-flow going, but it all went to servicing their bonds or other “innovative” financing schemes, and for many of the companies the cash flow wasn’t even covering those costs. It cost at least six million dollars for each shale well, and it was in the nature of shale oil that the wells depleted so quickly that after Year Three they were pretty much done. But it was something to do, at least, if you were an oil company — an alternative to 1) doing no business at all, or 2) getting into some other line-of-work, like making yoga pants or gluten-free cupcakes.

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“..87 allegations of sexual abuse by staff in 2016-17..” “..more than 120 workers across a range of leading charities had been accused of sexual abuse in the past year alone..”

Oxfam Faces Losing Funding As Crisis Grows Over Abuse Claims (G.)

Oxfam was scrambling on Sunday night to contain a growing crisis over claims of sexual misconduct by aid workers before a crunch meeting on Monday that could see the charity stripped of its government funding. Amid anger from the government and the wider aid sector at revelations that Oxfam staff in Haiti paid prostitutes – possibly underage – for sex in 2011, the charity’s chair of trustees, Caroline Thomson, pledged to widen a review of its practices to include the Haiti allegations and admitted “anger and shame that behaviour like that … happened in our organisation”. She set out the steps Oxfam would take to avoid a similar scandal in future after the international development secretary, Penny Mordaunt, issued a damning rebuke to the charity. Mordaunt warned that it would receive no more public money unless it demonstrated “moral leadership” and handed over all information on aid workers’ alleged use of prostitutes on the island.

[..] Oxfam’s fight to secure its financial footing came after days of escalating stories about the conduct of its workers after revelations that staff in Haiti had been dismissed for using prostitutes for sex parties. Any hopes the charity’s leadership had that the scandal might quickly subside were dashed when it was reported in the Observer that Oxfam staff in Chad had also used prostitutes and when Oxfam’s own annual report resurfaced, showing it dealt with 87 allegations of sexual abuse by staff in 2016-17. Oxfam’s crisis threatened to spill across the charity sector on Sunday with reports that more than 120 workers across a range of leading charities had been accused of sexual abuse in the past year alone.

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Everyone in Haiti knew about this. And it’s not just Oxfam either.

Oxfam Reels From Prostitution Scandal (G.)

deep disgust at what they were hearing was tinged with a sense of inevitability for some. “We’ve all worked with people who’ve worked in Ethiopia, DRC, Haiti, Malawi, Thailand etc who’ve seen similar things across the entire sector,” said one Oxfam worker in the Middle East. Goldring, admired by staff as “deeply thoughtful”, set out the story – first a chronology of what happened in Haiti in 2011, and then a commentary on the issues it raised, including pointing out the dilemmas that the Oxfam staff handling the case faced. For example, he said, the charity didn’t report it to the Haitian police because it was concerned that could rebound adversely on the women involved.

He struck one attendee as “desperately keen to put across the point that we don’t think there was a cover-up because we didn’t hide that there was a problem in Haiti”. Only Oxfam hadn’t been open about what that problem was. Some staff also felt there was a “single-mindedness about the attack on Oxfam” that was not commensurate with the weight of what had happened in 2011. It was shocking and wrong, but some felt that the problems revealed were probably not unique to Oxfam. “I’m really frustrated at the Oxfam-only lens in this – granted what happened was horrific,” said one Oxfam worker abroad. “I’ve worked for [several other NGOs] and there just isn’t any type of policy or procedure in place for any of this stuff.”

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The people responsible for these decisions should be taken to court. Even -make that especially- politicians must be held to their own laws.

The UK’s Hidden Role In Assange’s Detention (Cook)

It now emerges that the last four years of Julian Assange’s effective imprisonment in the Ecuadorean embassy in London have been entirely unnecessary. In fact, they depended on a legal charade. Behind the scenes, Sweden wanted to drop the extradition case against Assange back in 2013. Why was this not made public? Because Britain persuaded Sweden to pretend that they still wished to pursue the case. In other words, for more than four years Assange has been holed up in a tiny room, policed at great cost to British taxpayers, not because of any allegations in Sweden but because the British authorities wanted him to remain there. On what possible grounds could that be, one has to wonder? Might it have something to do with his work as the head of Wikileaks, publishing information from whistleblowers that has severely embarrassed the United States and the UK.

In fact, Assange should have walked free years ago if this was really about an investigation – a sham one at that – into an alleged sexual assault in Sweden. Instead, as Assange has long warned, there is a very different agenda at work: efforts to extradite him onwards to the US, where he could be locked away for good. That was why UN experts argued two years ago that he was being “arbitrarily detained” – for political crimes – not unlike the situation of dissidents we support in other parts of the world. According to a new release of emails between officials, the Swedish director of public prosecutions, Marianne Ny, wrote to Britain’s Crown Prosecution Service on 18 October 2013, warning that Swedish law would not allow the case to be continued. This was, remember, after Sweden had repeatedly failed to take up an offer from Assange to interview him at the embassy in London, as had happened in 44 other cases between Sweden and Britain.

Ny wrote to the CPS: “We have found us to be obliged to lift the detention order … and to withdraw the European arrest warrant. If so this should be done in a couple of weeks. This would affect not only us but you too in a significant way.” Three days later, suggesting that legal concerns were far from anyone’s mind, she emailed the CPS again: “I am sorry this came as a [bad] surprise… I hope I didn’t ruin your weekend.” In a similar vein, proving that this was about politics, not the law, the chief CPS lawyer handling the case in the UK, had earlier written to the Swedish prosecutors: “Don’t you dare get cold feet!!!”

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 July 31, 2016  Posted by at 10:13 pm Finance Tagged with: , , , , , , , , , , ,  4 Responses »


Vincent van Gogh Branches Of An Almond Tree In Blossom in Red 1890

Think about it for a second: If America -and UK, France- were to announce today that they would immediately cease bombing Syria, Iraq, Libya, Afghanistan, would the US be any less safe? Would Europe?

How about if we’d promise to spend all the billions saved by not throwing bombs on them, to help rebuild these countries? Would that make us less safe, from terrorists, from anyone at all? Do you think ‘they’ would ‘hate’ us for that?

It becomes a pretty stupid non-discussion pretty fast, doesn’t it?