Apr 042019
 
 April 4, 2019  Posted by at 9:01 am Finance Tagged with: , , , , , , , , , ,  


Pablo Picasso Nude on a beach 1929

 

Lack Of Redundancies On Boeing 737 MAX Baffles Its Developers (ST)
Trolling the Mueller Report (WSJ Op-ed)
Mueller Investigators Say Findings More Damaging To Trump Than Barr Has Let On
Comey Says He Fears Possible Counterinvestigation After Mueller Report (Pol.)
US Senators Want Stiff Sanctions To Deter Russia Election Meddling (R.)
Maybe Politics Matters After All (John Rubino)
Economist: Brexit Will Happen And Trump Fans Are ‘Economically Illiterate’ (FN)
UK MPs Back Brexit Delay Bill By One Vote (BBC)
No Deal Brexit Measures Needed To Keep Planes In Air And Troops On Ground (G.)
Top Labour Figures Demand Corbyn Secure Referendum (Ind.)
IMF Warns That Tech Giants Stifle Innovation And Threaten Stability (G.)
Next Phase in Trucking Boom-Bust Cycle Has Started (WS)
‘Excluding Everything That Makes China What It Is’ (Crooke)

 

 

Let’s start with the Seattle Times, because this article strongly hints that Boeing’s problems cannot possibly be solved with a software tweak. It’s a hardware issue as much as anything else. Cutting corners until there’s no corner left. And well over 300 people lost their lives due to this.

“Normal” planes have 3×3 sensors. The 737MAX effectively has one. And it was known to fail.

Lack Of Redundancies On Boeing 737 MAX Baffles Its Developers (ST)

Boeing has long embraced the power of redundancy to protect its jets and their passengers from a range of potential disruptions, from electrical faults to lightning strikes. The company typically uses two or even three separate components as fail-safes for crucial tasks to reduce the possibility of a disastrous failure. Its most advanced planes, for instance, have three flight computers that function independently, with each computer containing three different processors manufactured by different companies. So even some of the people who have worked on Boeing’s new 737 MAX airplane were baffled to learn that the company had designed an automated safety system that abandoned the principles of component redundancy, ultimately entrusting the automated decision-making to just one sensor — a type of sensor that was known to fail.

Boeing’s rival, Airbus, has typically depended on three such sensors. “A single point of failure is an absolute no-no,” said one former Boeing engineer who worked on the MAX, who requested anonymity to speak frankly about the program in an interview with The Seattle Times. “That is just a huge system engineering oversight. To just have missed it, I can’t imagine how.” Boeing’s design made the flight crew the fail-safe backup to the safety system known as the Maneuvering Characteristics Augmentation System, or MCAS.

A faulty reading from an angle-of-attack sensor (AOA) — used to assess whether the plane is angled up so much that it is at risk of stalling — is now suspected in the October crash of a 737 MAX in Indonesia, with data suggesting that MCAS pushed the aircraft’s nose toward Earth to avoid a stall that wasn’t happening. Investigators have said another crash in Ethiopia this month has parallels to the first. [..] one problem with two-point redundancies is that if one sensor goes haywire, the plane may not be able to automatically determine which of the two readings is correct, so Boeing has indicated that the MCAS safety system will not function when the sensors record substantial disagreement.

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The Wall Street Journal counterbalances the NYT and WaPo.

Trolling the Mueller Report (WSJ Op-ed)

Democrats are still reeling from Special Counsel Robert Mueller’s conclusion that the Trump campaign did not collude with Russians in 2016. But they’ve now hit upon a political comeback strategy: Accuse Attorney General William Barr of a coverup. That’s the context for Wednesday’s decision by House Democrats to authorize subpoenas, on a partisan vote, demanding that Mr. Barr immediately hand over the entire Mueller report and its supporting evidence. This is intended to give the impression, abetted by a press corps that was fully invested in the collusion story, that Mr. Barr is somehow lying about Mr. Mueller’s real conclusions. That’s preposterous, since Mr. Barr’s four-page letter quotes directly from Mr. Mueller’s report.

The AG surely understood on releasing the summary of conclusions last week that he would be open to contradiction by Mr. Mueller if he took such liberties. Mr. Barr also knew he’d be called to testify before Congress once the rest of the report is released. Mr. Barr has committed to releasing as much of the report as possible subject to Justice Department rules. He’s working with the special counsel’s office to make redactions required by grand-jury rules of secrecy, intelligence sources and methods, ongoing investigations, and “the personal privacy and reputational interests of peripheral third parties.” Under Justice rules relating to special counsels, Mr. Barr has no obligation to provide anything beyond notifying Congress when an investigation has started or concluded, and whether the AG overruled a special counsel’s decisions.

Mr. Barr’s notice to Congress that Mr. Mueller had completed his investigation said Mr. Mueller was not overruled. Congress has no automatic right to more. The final subparagraph of DOJ’s rule governing special counsels reads: “The regulations in this part are not intended to, do not, and may not be relied upon to create any rights, substantive or procedural, enforceable at law or equity, by any person or entity, in any matter, civil, criminal or administrative.” Mr. Barr has made clear that he appreciates the public interest in seeing as much of Mr. Mueller’s report as possible. Yet his categories of information for review aren’t frivolous or political inventions. The law protecting grand-jury secrecy is especially strict, as even Democrats admit.

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Glenn Greenwald tweets about this:

Trump/Russia conspiracists are like zombies: the dream can’t die. Their new hope is a) anonymously sourced, b) bereft of even one specific, c) irrelevant to *conspiracy* as opposed to obstruction & d) unrelated to the fact that Mueller indicted *zero* Americans for conspiracy

[..] Mueller could have concluded he thinks Trump was guilty of obstruction, but chose not to. He could have alleged a Trump/Russia conspiracy, or could have charged Trump officials & family members with conspiring with Russia, but didn’t. These last-gasp efforts don’t change that.

[..] Anyway, we’ve had 3 years of anonymously-sourced “bombshells” journalists spend 16-24 hours tiring themselves out celebrating on Twitter, only for it to fizzle into nothing (ie: no indictments from Mueller for conspiring with Russia). Why not have one more? An addict’s last fix.:

Mueller Investigators Say Findings More Damaging To Trump Than Barr Has Let On

The conclusions of special counsel Robert Mueller’s investigation are more damaging to President Donald Trump than Attorney General William Barr has revealed, the New York Times reported late Wednesday. The Times said some investigators who were part of the probe are frustrated that Barr has undersold the findings, which may be creating a misleading narrative that could be hard to overcome if and when the full report is released. The sources did not specify how they believe the report is more damaging to Trump. The investigators told the Times that they had written numerous summaries of their main conclusions, which were not included in Barr’s summary of the report. Barr said the report found no collusion between Trump and Russia, but did not exonerate Trump on the issue of obstruction of justice. House Democrats have pressed Barr to release the full report, but Barr claims parts of it needs to be redacted first for security reasons.

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It would be crazy if there isn’t one.

Comey Says He Fears Possible Counterinvestigation After Mueller Report (Pol.)

Former FBI Director James Comey on Tuesday condemned President Donald Trump’s calls for a possible investigation into how special counsel Robert Mueller’s Russia inquiry started, adding that it creates a troubling precedent. During an interview with CNN’s Christiane Amanpour, Comey was asked about whether he feared possible counterinvestigations. “I don’t fear it personally. I fear it as a citizen,” he said. “Right? Investigate what? Investigate that investigations were conducted? What would be the crime you’d be investigating? So it’s a terrible cycle to start.” Several days after Attorney General William Barr released his summary of Mueller’s report, Trump and his team have called for investigations into how the probe began.


“Hopefully, somebody is going to look at the other side,” Trump told reporters late last month. The president’s personal lawyer, Rudy Giuliani, has also made similar statements. On Tuesday, Trump continued to advocate for an examination of how the FBI and Mueller investigations began. “I hope they now go and take a look at the origins of the investigation, the beginnings of the investigation,” the president told reporters at the White House on Tuesday. “You look at the origin of the investigation, where it started, how it started, who started it.” “Whether it‘s [former FBI Deputy Director Andrew] McCabe or Comey or a lot of them, where does it go? How high up in the White House did it go?“ Trump continued, calling on reporters to investigate the origins of Mueller‘s probe, even dangling the prospect of a Pulitzer Prize to journalists in the room.

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Whatever powers these people have should be taken away from them. Both sides of the aisle want war with Russia.

US Senators Want Stiff Sanctions To Deter Russia Election Meddling (R.)

U.S. Republican and Democratic senators introduced legislation on Wednesday seeking to deter Russia from meddling in U.S. elections by threatening stiff sanctions on its banking, energy and defense industries and sovereign debt. The “Deter Act” is the latest effort by U.S. lawmakers to increase pressure on Moscow over what they see as a range of bad behavior, from its aggression in Ukraine and involvement in Syria’s civil war to attempts to influence U.S. elections. The measure was introduced by Senators Chris Van Hollen, a Democrat, and Marco Rubio, a Republican. They offered a similar measure last year, when it also had bipartisan support but was never brought up for a vote by the Senate’s Republican leaders, who have close ties to President Donald Trump.

Trump has gone along with some previous congressional efforts to increase sanctions on Russia, although sometimes reluctantly. Backers of stronger action against Russia believe such measures will have better prospects in 2019, given control of the House of Representatives by Democrats, who are less reluctant than Trump’s fellow Republicans to push back against the White House. According to details of the legislation, first reported by Reuters, it would require the U.S. Director of National Intelligence (DNI) to determine, within 30 days of any federal election, whether Russia or other foreign government or anyone acting as an agent of that government, had engaged in election interference.

If the DNI found such interference occurred, the act would require, among other things, that mandatory sanctions be imposed within 10 days on, among others, Russian banks and energy companies. The act would mandate that sanctions be imposed on two or more of the following Russian banks: Sberbank, VTB Bank, Gazprombank, Vnesheconombank and Rosselkhozbank. It also would order the prohibition of all transactions subject to U.S. jurisdiction in Russian sovereign debt, Russian government bonds and the debt of any entity owned or controlled by Russia’s government.

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Very-long-time Automatic Earth friend John Rubino has a series of reasons why politics matter.

Maybe Politics Matters After All (John Rubino)

Looking strictly at the numbers it’s hard to work up much interest in whether Republicans or Democrats are in charge after 2020. Either way, trillion-dollar deficits and extremely easy money are guaranteed, which means the US – along with most of the rest of the world – will fall off a financial cliff shortly. After that, the only non-financial issue that will matter is war – and both parties seem about equally bloodthirsty these days. However, after the November congressional elections — in which Democrats with, ahem, assertive ideas and attitudes did extremely well — proposing big, potentially transformative change now looks like the best way to cut through the media clutter and gain a following.

So the Democrat base has lost its fear of the “S” word and is now embracing a list of policies that are designed to lock in their dominance for a generation, but which carry myriad unintended consequences. If the Dems were in charge today, there’s a good chance that they would: Make Washington D.C. a state This is a no-brainer for Democrats. Since DC voters skew liberal (no surprise for people who by and large work for the government), making it a state adds two guaranteed votes in the Senate and several solid votes in the House. That alone might be enough to tip the balance on many votes.

[..] The math of elector apportionment gives more per-capita clout to small states as a way of protecting them from the whims of the large. Without this advantage, according to fans of the Electoral College, candidates would ignore Wyoming and Rhode Island and spend all their time in population centers like Los Angeles and Dallas. Subsequent governments would favor big states over small; good luck to Nevada if it has a water dispute with California. In short, without the Electoral College, flyover country is toast. But with the Electoral College it’s possible to win the most votes and still lose the election, as has happened a couple of times recently to the Dems. As the following chart shows, a majority of Democrats would abolish the College while Republicans would keep it.

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The City sees itself as immune.

Economist: Brexit Will Happen And Trump Fans Are ‘Economically Illiterate’ (FN)

The received wisdom within the City is that Brexit will cause widespread disruption to the Square Mile. But according to Dr Savvas Savouri, chief economist at Toscafund Asset Management, the $4bn London-based investment firm, so great is the extent of foreign investment in UK companies that leaving the EU carries no risk for the City at all. In an interview with Financial News at Toscafund’s Covent Garden office, when asked what is the biggest risk posed by Brexit to London’s finance industry, the abrasive and outspoken economist replied: “Nothing. The whole point about Brexit is there’s too much insurable interest in the UK across Europe for it to fail [for the UK and the EU not to form an agreement]. Ireland would go into immediate deep recession, so would Spain, Malta, Greece and Cyprus.”


An IMF study in August estimated that a scenario where the UK leaves the customs union and single market, and trades with the EU on WTO terms — an orderly version of a no-deal Brexit — would impose long-term costs on Ireland of 4% of output, and between 0.2% and 0.5% on countries such as Spain and Greece. Economists have warned that a disorderly Brexit would likely hit such countries even harder. “They know a bad Brexit would undermine the pound, a currency in which they have large holdings,” Savouri said. Warming to his theme, he added that the lack of short interest in European stocks exposed to the UK suggests investors are not particularly worried about a crash-out Brexit. “The people in finance who tell you they’re worrying about Brexit are not putting their money where their mouth is.”

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The most dangerous majority on earth.

UK MPs Back Brexit Delay Bill By One Vote (BBC)

MPs have voted by a majority of one to force the prime minister to ask for an extension to the Brexit process, in a bid to avoid any no-deal scenario. Labour’s Yvette Cooper led the move, which the Commons passed in one day. The bill will need Lords approval to become law, while it is the EU who decides whether to grant an extension. It comes as talks between Prime Minister Theresa May and Labour leader Jeremy Corbyn to end the Brexit deadlock are set to continue. Discussions between the two leaders on Wednesday were described as “constructive”, but were criticised by MPs in both parties.


Meanwhile, Chancellor Philip Hammond has suggested that he expects Brussels to insist on a lengthy delay to Brexit and described a public vote to approve any final deal as “a perfectly credible proposition”. Ms Cooper’s attempts to prevent a no-deal departure from the EU passed by 313 votes to 312. The draft legislation by the former Labour minister would force the prime minister to ask the EU for an extension to the Article 50 process beyond 12 April and would give Parliament the power to decide the length of this delay.

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Yup. They voted down No Deal again, and the press keeps talking about what happens under a No Deal.

No Deal Brexit Measures Needed To Keep Planes In Air And Troops On Ground (G.)

Cabinet ministers were told they must agree emergency contingency plans to keep planes flying to North America and Australia, as well as keeping British troops legally in Bosnia, in case the EU forces a no-deal exit. Before their marathon cabinet meeting on Tuesday, the cabinet secretary, Sir Mark Sedwill, briefed ministers that major security and commercial decisions would need to be completed if Brussels rejected Theresa May’s plan to ask for a short extension to article 50. A cabinet source said the decisions were likely to result in large costs to the taxpayer and that decisions would also need to be taken on direct rule in Northern Ireland and payment of the UK’s £39bn divorce bill to the EU.

Among the decisions outlined in a 14-page document handed to ministers in Downing Street were: • New agreements would be required for air services with Canada, the US and Australia. • British troops in Bosnia currently serving as part of an EU force would need to be placed under Nato command. • Negotiations would need to be urgently completed on a future fisheries agreement so that EU fishing boats could be expelled from British waters. Sedwill, the UK’s highest-ranking civil servant, is said to have warned cabinet ministers that some of the biggest decisions were likely to be very difficult to reverse, because they involved international agreements.

The warnings from Sedwill, who is also May’s national security adviser, follow an earlier letter he wrote to ministers warning that no deal would lead to food price rises and a reduction in security capacity. The 14-page leaked letter, obtained on Monday by the Daily Mail, said no deal would result in the reintroduction of direct rule in Northern Ireland. Sedwill also warned that the UK would face a recession “more harmful” than the 2008 financial crisis and that food prices could increase by up to 10%. He wrote that it was possible that the government would come under pressure to bail out companies facing collapse due to the barriers to trade with the EU and that security services and police would face a reduction in their capabilities.

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May would be done if she’d give in.

Top Labour Figures Demand Corbyn Secure Referendum (Ind.)

Labour is on the brink of a major bust-up if Jeremy Corbyn fails to demand a second referendum as the price for any Brexit deal struck with Theresa May. A string of senior figures – including shadow foreign secretary Emily Thornberry – believe securing a public vote is an absolute must, while 11 MPs, including four frontbenchers, have written an open letter to Mr Corbyn in The Independent saying “it would be untenable for Labour not to insist” on one. As Mr Corbyn was in the prime minister’s office holding the talks, one of his party’s biggest trade union backers also endorsed a motion calling for a confirmatory referendum on any deal.


But key individuals on the Labour side of the talks indicated a new vote may not be one of his asks, with one shadow cabinet member attending having stated hours earlier that a deal endorsed by the party would not need a referendum. It comes despite Labour, and indeed Mr Corbyn himself, backing a motion in the House of Commons days ago which called for a referendum on any Brexit plan passed by parliament.

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Yeah, we really trust the IMF in everything they say.

IMF Warns That Tech Giants Stifle Innovation And Threaten Stability (G.)

The International Monetary Fund has warned that the market power exercised by a small number of global companies threatens to stifle innovation and make it harder for central banks to deal with recessions. Adding its contribution to the growing public debate about the corporate power exercised by the US tech giants such as Google, Amazon, Apple and Facebook, the IMF said it would be concerned if there was any further increase in the clout of already dominant firms. The IMF said there was a need for stronger competition policy to ensure that established firms did not block the entry of potential rivals and called for excess profits to be targeted by a tougher international tax regime.

Although the study contained in the IMF’s forthcoming World Economic Outlook (WEO) did not mention any company by name, it said the past two decades had seen the concentration of market power among a small number of productive and innovative firms. Market concentrations tended to be higher in the US than in Europe, the IMF said, and in part reflected the growth of firms that exploited intangible assets. “Over the past two decades, a generally moderate but broad-based rise in corporate market power has been observed across advanced economies, driven primarily by a small fraction of firms.”

The chapter from the WEO noted that the big-picture economic implications of the trend had so far been “rather modest” and that the impact of rising market power on innovation had so far been positive. But the IMF said impact would become “increasingly negative if the market power of high mark-up firms, in particular, were to continue to rise in the future.”

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Just a cycle?!

Next Phase in Trucking Boom-Bust Cycle Has Started (WS)

This is one of the most cyclical industries, with legendary boom-and-bust cycles: Orders for Class-8 trucks plunged 67% in March compared to March last year, to 15,200 orders, the lowest March for orders since 2010, according to FTR Transportation Intelligence. These are the heavy trucks that haul consumer goods, equipment, commodities, and supplies across the US. This plunge comes after orders had already plunged 58% year-over-year in February and January and 43% in December. The chart shows the percent change of Class-8 truck orders for each month compared to the same month a year earlier. The year-over-year collapse in orders over the past four months are of the same or greater magnitude as those during the last transportation recession in 2015 and 2016:

The recipients of these orders are the truck manufacturers Peterbuilt and Kenworth (divisions of Paccar); Navistar International; Freightliner and Western Star (divisions of Daimler); and Mack Trucks and Volvo Trucks (divisions of Volvo Group). The industry is notorious for over-ordering, which then, once these trucks are built, leads to overcapacity, at which point freight rates take a hit. Trucking companies see this coming and slash their orders in advance. Hence the bust that inevitably follows the boom. The last transportation recession in 2015 and 2016 led to waves of layoffs at truck and engine manufacturers. But at the moment, truck manufacturers are sitting on what was a historic backlog of orders dating from the phenomenal boom that peaked last August at 52,400 orders, as this chart of total monthly class-8 truck orders shows (data via FTR):

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Alastair’s starting to feel goal-seeked. Like many Belt&Road views.

‘Excluding Everything That Makes China What It Is’ (Crooke)

In the past few weeks, we have witnessed a mini ‘Belt & Road’ unfolding across the northern Middle East – linking Iran to Iraq, to Syria, and to Lebanon – a ‘Belt and Road’ that, it is envisaged, ultimately will be assimilated into China’s greater BRI project. And – as telling – Lebanon, the eternal weathervane for the Middle East wind direction, seems to be cutting a 500-year-old umbilical linking it to Rome and Europe, to look rather to Moscow (to protect the regions’ Christians, to get its Syrian refugees home to Syria, and to move under President Putin’s protective ‘wing’ in preventing Bolton and Netanyahu from detonating chaos on their patch) – and to China.

More recently, the New Silk Road infrastructure initiative landed squarely in Italy, potentially giving some real substance (i.e. infrastructure) – especially in the case of Sicily – to the notion of a Mediterranean commonality. Both these events are linked by a single motive: How to return autonomy to these states; how to recover at least a modicum of decision-making – and to break free from the strait-jacket of economic stagnation, and the deadweight of stale political shackles. As Christina Lin has noted: “China for one takes the view that security follows economic development, and has made it clear that reconstruction comes before political settlement. It is adopting a regional approach to the Levant and now views Lebanon as a platform for reconstruction in Syria and Iraq”.

[..] Both Italy and the Levant are ‘civilisation-states’ in their own right. They do not need the EU ‘brand’ to reassure them of their status as ‘civilisation-states’. As Lebanon’s former Minister of Economy noted last year, China doesn’t “look at Lebanon as a small country of 4 million citizens, but as a country with huge potential given its geographical location”. The point here is precisely that ‘the West’ is no longer the West. There is the belligerent ‘West’ of Trump, Pence, Bolton and Pompeo – and this is the ‘West’ that is incrementally losing traction across the Middle East, and beyond.

Read more …

Mar 302019
 
 March 30, 2019  Posted by at 9:59 am Finance Tagged with: , , , , , , , , , , ,  


René Magritte The muscles of the sky 1927

 

May Hopes To Hold Fourth Vote On Brexit Deal (Ind.)
May Ready To Trigger Election Within 10 Days (Ind.)
EU Gives Britain 11 Days To Come Up With New Brexit Plan (G.)
The Democrats Are Self-Destructing (PCR)
Wokester’s Nightmare (Kunstler)
Barr Says Mueller Report Will Be Released In Mid-April ‘If Not Sooner’ (AP)
On Russiagate and Our Refusal to Face Why Trump Won (Taibbi)
US Readying Sanctions On Russia Over Nerve-Agent Attack In Britain (R.)
Southwest To Keep Boeing 737 MAX Off Schedules Through May (R.)
TUI Sticks With Boeing, Sees 737 Maxs Flying By Mid-July (R.)
Human Population Explosion Squeezes Out Wildlife On African Savannah (Ind.)
The Places in America that Use the Most (and Least) Pesticides (PO)

 

 

Get me Bill Murray on the phone.

May Hopes To Hold Fourth Vote On Brexit Deal (Ind.)

Theresa May hopes to bring her Brexit deal back to parliament again next week after it was rejected for a third time by MPs – and appears poised to trigger a general election if parliament fails to agree a way forward. Despite the embattled prime minister’s dramatic promise on Wednesday that she would hand over the keys to 10 Downing Street if her Tory colleagues backed the withdrawal agreement, parliament voted against it on Friday, by 344 to 286. The Commons vote was held on the day when Britain was meant to be leaving the European Union, as Parliament Square outside overflowed with raucous pro-Brexit protesters.

A string of leave-supporting Conservative backbenchers who had twice rejected the deal, including Boris Johnson, Jacob Rees-Mogg and former Brexit secretary Dominic Raab, switched sides to support the agreement. But with Labour unwilling to shift its position, and the Democratic Unionist party’s 10 MPs implacably opposed, it was not enough to secure a majority for May. The result was a sense of stunned disbelief in Westminster. Asked what could happen next, one government source said: “Last one out, turn off the lights.” Immediately after the defeat was announced, May told MPs: “The implications of the house’s decision are grave. The legal default now is that the United Kingdom is due to leave the European Union on 12 April. In just 14 days’ time.”

Under the deal agreed by EU leaders in Brussels last week, if May had passed her withdrawal agreement this week, Brexit would have been delayed until 22 May. Now, she will have to return to Brussels for an emergency European council summit on 10 April. The EU27 expect her to ask for a longer delay – requiring Britain to participate in the European elections in May – or accept a no-deal Brexit two days later. However, her aides hope the 22 May date could still be in play if her deal is accepted next week.

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So what’s she waiting for?

May Ready To Trigger Election Within 10 Days (Ind.)

Britain is veering towards a new general election after MPs voted down Theresa May’s Brexit deal for a third time on Friday. She strongly hinted after the defeat that she will take the country to the polls if parliament does not pass a deal respecting the 2016 referendum result in the next 10 days. Ministers told The Independent a new election was a clear possibility featuring in the prime minister’s thinking, with her likely to have one final attempt to push her deal through next week. As thousands of pro-Brexit protesters shouted outside parliament, Labour leader Jeremy Corbyn and Scottish nationalists, who form the third biggest group in the House of Commons, also called for an election.


It comes as MPs will once again take control of the chamber’s schedule on Monday to hold indicative votes to see if a soft-Brexit compromise can achieve a majority. [..] Asked whether an election was now becoming a clear possibility, one cabinet source told The Independent without hesitation: “Yes. Absolutely. No question.” There had been speculation that the vote itself was set up for 29 March to make a show of Mr Corbyn’s party voting against Brexit ahead of a pending election campaign. One cabinet minister later said: “We would throw at them the question of ‘what did your MP do on exit day?’ “This is going to be difficult for a lot of individual Labour MPs in Leave areas.”

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10 days, 11 days, they’re intent on entertaining us every single day.

EU Gives Britain 11 Days To Come Up With New Brexit Plan (G.)

The EU has given the British government 11 days to come up with a fresh Brexit plan to avoid crashing out of the bloc at 11pm on 12 April. In the immediate aftermath of the crushing rejection of the prime minister’s deal, the European council president, Donald Tusk, called an emergency leaders’ summit. Should the UK seek a lengthy extension, leaders will debate any request at an extraordinary meeting on 10 April. EU capitals would require a clear justification at least two days earlier from Downing Street on the reason for a lengthy delay to allow officials to prepare. “We expect the UK to indicate a way forward before then, well in time for the European council to consider,” an official said.


EU heads of state and government expressed their alarm at the continued impasse in Westminster following the third defeat of May’s deal. The Irish taoiseach, Leo Varadkar, said: “It is up to the UK to indicate how it plans to proceed in order to avoid a no-deal scenario. The European council has agreed unanimously that the withdrawal agreement will not be reopened.” However, he added: “I believe we must be open to a long extension should the UK decide to fundamentally reconsider its approach … I believe that will result in a generous and understanding response from the 27.”

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Haven’t heard from Paul Craig Roberts in a while. Is that just me?

The Democrats Are Self-Destructing (PCR)

I know Democrats are disappointed not to have Trump’s head presented to them by Mueller on a silver platter. But surely not even Democrats are stupid enough to believe the Russiagate conspiracy tale. It was all cooked up by the military/security complex to prevent Trump from normalizing relations with Russia, thereby removing the enemy that justifies the $1,000 billion annual budget. Before writing such nonsense as Hartmann has written, he should have read Barr’s summary of the report. Barr quotes Mueller directly from the report: “The investigation did not establish that members of the Trump Campaign conspired or coordinated with the Russian government in its election interference activities.” Again from Mueller’s report: “The evidence does not establish that the President was involved in an underlying crime related to Russian election interference.”


Other Democrats who cannot cope with their disappointment claim that although cleared of election theft collusion Trump was not cleared of obstruction of justice. This is nonsensical even for Democrats. As Trump committed no crime, what evidence did he obstruct? The evidence of his innocence? Just as murder requires a body, obstruction requires a crime to obstruct. But facts are boring to Democrats. They were certain that all the lies that they and the media whores told would find their way into Mueller’s report. Mueller’s staff was Democrat to the core, and Mueller used every dirty trick in the book in his effort to get something on Trump. It simply couldn’t be done. Democrats will never get over it, just as they never have got over Iran-Contra. Hartmann couldn’t write about the “Russiagate coverup” without dragging in Ronald Reagan and the “Iran-Contra coverup.”

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“It’s also very likely that Robert Mueller learned that the Steele Dossier was a fraud in the summer of 2017, if not shortly after his appointment in May of that year..”

Wokester’s Nightmare (Kunstler)

All of a sudden, a whole lot of people who have been punking the public-at-large will have to answer for their behavior. Despite the fog of misdirection blowing out of The New York Times, The WashPo, CNN, and MSNBC, it’s become obvious that the RussiaGate hoax was kicked off by Hillary Clinton’s campaign and a cabal of Obama appointees in several executive agencies. The evidence is public, fully documented, and overwhelming that the so-called Steele Dossier was the sole animating instrument in both the 2016 pre-election effort to incriminate the Golden Golem of Greatness, and the Mueller Investigation launched post-election to cover-up those same political misdeeds of the Clinton campaign, the FBI, the Department of Justice, the CIA, NSA, and State Department.


It’s also very likely that Robert Mueller learned that the Steele Dossier was a fraud in the summer of 2017, if not shortly after his appointment in May of that year, and yet he dragged out his investigation for almost two years in order to defame and antagonize Mr. Trump — and deflect attention from the ugly truth of the matter. It is certain Mr. Mueller knew that the Steele Dossier was purchased by Glenn Simpson’s Fusion GPS political “research” company, which was simultaneously in the paid employ of Mrs. Clinton and the Russian political lobbying agency Prevezon (as reported by Sean Davis in The Federalist). If the FBI brass did not bring that to Mr. Mueller’s attention right away, then either their incompetence is epic or they are criminally liable for concealing the hoax.

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Mueller’s doing the redacting with Barr.

Barr Says Mueller Report Will Be Released In Mid-April ‘If Not Sooner’ (AP)

Congress should expect to receive a redacted version of special counsel Robert Mueller’s report on the Russia investigation by mid-April, Attorney General William Barr said Friday. In a letter to the chairmen of the House and Senate judiciary committees, Barr said he shares a desire for Congress and the public to be able to read Mueller’s findings, which are included in the nearly 400-page report Mueller submitted last week. Barr said he does not plan to share the report with the White House before making it public. He said that while President Donald Trump would have the right to assert executive privilege over certain parts of the report, “he has stated publicly that he intends to defer to me and, accordingly, there are no plans to submit the report to the White House for a privilege review.”

Mueller officially concluded his investigation when he submitted the report last Friday. Two days later, Barr sent a four-page letter to Congress that detailed Mueller’s “principal conclusions.” Mueller’s report did not find that the Trump campaign coordinated or conspired with Russia, Barr wrote, and did not reach a conclusion on whether Trump obstructed justice. Barr said he and Deputy Attorney General Rod Rosenstein decided on their own that Mueller’s evidence was insufficient to establish that the president committed obstruction.

Barr said he is preparing to redact multiple categories of information from the report. Those include grand jury material; information that would compromise sensitive sources and methods; information that could affect ongoing investigations, including those referred by Mueller’s office to other Justice Department offices; and information that could infringe on the personal privacy and reputation of “peripheral third parties.” “Our progress is such that I anticipate we will be in a position to release the report by mid-April, if not sooner,” he said.

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Getting a bit tired of all the regurgitating and gloating, but this look back is nice.

On Russiagate and Our Refusal to Face Why Trump Won (Taibbi)

Nate Silver, the ex-baseball stats guru and renowned “National Oracle™” (as Gizmodo cheekily called him), laughed at Trump’s chances[1]. His site, FiveThirtyEight, ran a story called “Why Donald Trump Isn’t a Real Candidate, In One Chart.” The piece said Trump was more likely to “play in the NBA finals” or cameo in another Home Alone movie than win the nomination. Dana Milbank in the Washington Post: “I’m so certain Trump won’t win the nomination that I’ll eat my words if he does. Literally.” Milbank ended up actually doing this, for which he deserves a lot of credit. “Donald Trump is going to lose because he is crazy,” was the take of Jonathan Chait, who would soon be writing Trump might have been recruited by the KGB in 1987.

It isn’t just that wizards of prognostication were wrong. The bigger issue was why they were so confident. A common take was the political establishment just wouldn’t allow it. Former “The Note” writer Mark Halperin used to talk about having his finger on the pulse of the “Gang of 500,” which he described as “campaign consultants, strategists, pollsters, pundits and journalists who make up the modern-day political establishment.” The subtext of Halperin’s pieces was that the Gang of 500 decided elections. It’s hard to understand how it never occurred to Halperin or anyone else that people might be grossed out by the concept of 500 self-appointed guardians of democracy deciding the presidency for 300 million people.

In this case, just by saying out loud the idea that the people who mattered would never let Trump win, probably helped Trump win. It validated his talk about “elites.” Nate Cohn of The New York Times wrote Trump had “just about no shot of winning the nomination no matter how well he is doing in the early polls.” He prefaced this by saying it is “the party elites who traditionally decide nomination contests.” When Trump defied these predictions and sealed up the Republican nomination, he immediately became subject to a new legend, about how he was destined to be the biggest landslide loser in history of general elections: bigger than Alf Landon or even George McGovern, whose very name in America is synonymous with “loser.”

Here are some takes on Trump’s campaign after he sealed up the nomination: David Brooks: Trump will be the “biggest loser” in American politics. The Week: “Trump is poised to lose the biggest landslide in modern American history.” George Will: “Donald Trump may find a place in history – by losing just that badly.” I belong on this infamous list myself. In one of the worst mistakes of my career, I ended up changing my mind about “free-falling” Trump’s chances, spending the stretch run predicting doom for Republicans. I read too many polls and ignored what I was seeing, i.e. that even the post-Access Hollywood Trump was still packing stadiums.

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I swear I thought it was an April Fools prank.

US Readying Sanctions On Russia Over Nerve-Agent Attack In Britain (R.)

The White House has received a package of new sanctions to be imposed on Russia in retaliation for the 2018 nerve-agent attack on a Russian double agent in Britain, Bloomberg reported on Friday. Officials at the U.S. Treasury and State Departments have vetted the sanctions and are awaiting approval from the White House to issue them, Bloomberg said, citing people familiar with the matter. Sergei Skripal, a former colonel in Russia’s GRU military intelligence service, and his 33-year-old daughter, Yulia, were found unconscious on a bench in the southern English city of Salisbury in March 2018 after a liquid form of the Novichok type of nerve agent was applied to the front door of Skripal’s home.


Both Skripal and his daughter survived. Russia has denied any involvement in the attack. Asked about Friday’s report, a Trump administration official noted that Secretary of State Mike Pompeo had told Russian Foreign Minister Sergei Lavrov in a phone call in February that the United States was determined to hold Russia accountable for the attack through sanctions.

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Don’t think they’ll make it.

Southwest To Keep Boeing 737 MAX Off Schedules Through May (R.)

Southwest Airlines Co said on Friday it was pulling its Boeing Co 737 MAX jets from flight schedules through May, extending its earlier timeline from April 20, according to a company memorandum seen by Reuters. “This will impact the lines in May, but, now that the decision has been made, we can construct our schedule without those flights well in advance in hopes to minimize the daily disruptions,” the Southwest Airlines Pilots Association and the company said in the joint memorandum. Boeing’s top-selling 737 MAX jetliner has been grounded in the wake of two deadly crashes involving that model in five months, one in Indonesia last October and another on March 10 in Ethiopia.

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Europe’s no 1 tour operator. Note how nice Boeing and them are to each other:“..he was “very certain” of receiving some compensation from Boeing, probably next year.|”

TUI Sticks With Boeing, Sees 737 Maxs Flying By Mid-July (R.)

TUI remains committed to its Boeing 737 MAX orders despite two fatal crashes that have led to the grounding of the plane worldwide and caused the Anglo-German tour operator to issue a profit warning on Friday. TUI said its profit would fall by at least 200 million euros ($225 million) this year due to the cost of substituting planes, loss of business and lower fuel efficiency – further evidence of the financial impact of the two deadly accidents after warnings from North American airlines. The holiday firm’s shares fell to an all-time low.

Global airlines and travel groups have had to make contingency plans after 737 MAX planes were taken out of service following an Ethiopian Airlines disaster on March 10 that killed 157 people, five months after a Lion Air crash in Indonesia that killed 189. Boeing is planning a software fix to address an issue that can arise when the MAX’s anti-stall system, MCAS, repeatedly pushes the plane’s nose down. The MCAS system is at the center of safety investigations into the two crashes. Based on feedback from Boeing and EU regulator EASA, the planes should be flying again in July, TUI’s Chief Executive Friedrich Joussen told analysts on a call.

CEO Joussen said: “We are saving $1 million per year per aircraft in fuel, but – and here comes the but – safety first.” TUI has little scope to cancel flights, as some airlines are doing, because the flights feed its hotel and cruise business. It is leasing planes complete with crews to replace those due to have been flown by 737 MAXs at the cost of $1 million each per month, executives said, adding they had seen some tightening of the so-called wet-leasing market. Bookings were down by 10 percent in major markets since the Ethiopian crash, Joussen said, adding he was “very certain” of receiving some compensation from Boeing, probably next year.

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“.. a 400 per cent increase in human population over the last decade, while more than three quarters of the populations of some of the larger species of migrating animals like wildebeest, zebra and gazelle have been wiped out..”

Human Population Explosion Squeezes Out Wildlife On African Savannah (Ind.)

Encroachment by people into one of Africa’s most celebrated ecosystems is “squeezing the wildlife in its core”, by damaging habitation and disrupting the migration routes of animals, a major international study has concluded. Boundary areas of the Serengeti-Mara region in East Africa have seen a 400 per cent increase in human population over the last decade, while more than three quarters of the populations of some of the larger species of migrating animals like wildebeest, zebra and gazelle have been wiped out, scientists revealed after examining 40 years of data. Despite being one of the most protected ecosystems on Earth, the influx of people and livestock around both the Serengeti and Masai Mara has had a detrimental impact on plants, wild animals and soils.


This has occurred in two main ways, the study found. Firstly, the protected areas’ or “buffer zones” where more livestock including cattle are being reared, are leaving less and lower quality grasses for wildebeest, zebra and gazelle to graze. Secondly, the presence of people and farm animals has also reduced the frequency of natural fires, which in turn impacts the variety of vegetation, altering grazing opportunities for wildlife in the core protected areas. Publishing their findings in the journal Science, the authors said the impacts were cascading down the food chain. Animals were forced to eat less palatable herbs and therefore the beneficial interactions between plants and microorganisms that enable the ecosystem to flourish were being altered.


Zebra, gazelle and wildebeest populations have fallen as human populations have risen on the edges of protected areas (Getty)

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h/t Tyler

The Places in America that Use the Most (and Least) Pesticides (PO)

We decided to analyze data to uncover which states in the United States had the most and least exposure to pesticides, herbicides and other agricultural chemicals, with a particular focus on glyphosate, the active ingredient that is in the news right now. We looked at data from the U.S. Geological Survey (USGS) to see which compounds were most popular and which locations had the highest usage levels of these chemicals. By a significant margin, the most popular herbicide in the United States is glyphosate, which is four times more popular than the second most popular chemical. Not surprisingly, large agricultural states like California, Washington, and Illinois use the most pesticides.

However, some states that use a lot of these chemicals see very little glyphosate usage, while others nearly exclusively use the compound. In California for example, only 6 percent of pesticide usage is glyphosate, while in Montana, 52 percent of such usage is from glyphosate. [..] By a significant margin, glyphosate is the most popular pesticide used in American agriculture. Over 130 million kilograms were used in 2016, which was approximately four times more than the second-place pesticide, Atrazine. In total, just over 544 million kilograms of pesticides were used in the U.S. in 2016, and 24 percent of that was glyphosate. It’s hard to overestimate just how pervasive Roundup and glyphosate are this country.

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Feb 232019
 


Henri Rousseau The sleeping gypsy 1897

 

A Fed Pivot, Born Of Volatility, Missteps, And New Economic Reality (R.)
Get Out Of The Bond And Stock Market, Put Your Money In Cash – Stockman (MW)
Global Sovereign Debt Will Top $50 Trillion This Year (ZH)
Mueller Won’t Deliver Report To DOJ Next Week (Hill)
Schiffting to Phase 2 of Collusion (Strassel)
‘Even Nixon Wasn’t Like Him’: Trump’s Bid To Upend Russia Inquiry (G.)
Great Investigations (Kunstler)
Theresa May Must Go In Three Months, Cabinet Ministers Say (G.)
UK Food Imports From EU Face ‘£9bn Tariff Bill’ Under No-Deal Brexit (G.)
Dianne Feinstein Snaps At Group Of Environmental Activist Children (ZH)
The Cold War in Tech (Barron’s)
Silicon Valley Wants In On It Pair Of Gene-Edited Chinese Twins (ZH)
China Blocks 17.5 Million Plane Tickets Due to Lack of ‘Social Credit’ (Ind.)

 

 

The folly of our times. The Fed has completely destroyed America’s market system, and thus its economy, and they are treated as wise men. There are no markets left, there are no pensions left, there’s only the Fed.

A Fed Pivot, Born Of Volatility, Missteps, And New Economic Reality (R.)

The Federal Reserve’s promise in January to be “patient” about further interest rate hikes, putting a three-year-old process of policy tightening on hold, calmed markets after weeks of turmoil that wiped out trillions of dollars of household wealth. But interviews with more than half a dozen policymakers and others close to the process suggest it also marked a more fundamental shift that could define Chairman Jerome Powell’s tenure as the point where the Fed first fully embraced a world of stubbornly weak inflation, perennially slower growth and permanently lower interest rates. Along with Powell’s public comments, Fed minutes, and other documents, the picture emerges of a central bank edging towards a period of potentially difficult change as it reviews how to do business in light of that new reality.

[..] Concern that years of solid economic growth and falling unemployment would inevitably rekindle inflation or threaten financial stability have been a staple of Fed debates, but had largely disappeared by the Fed’s Dec. 18-19 meeting, according to a review of Fed meeting minutes and officials’ public statements. It was a conclusion hiding in plain sight. After a year when the Trump administration pumped around $1.5 trillion of tax cuts and public spending into a full employment economy, the Fed in 2018 would miss its 2 percent inflation target yet again.

“I hate to say we were right,” Dallas Federal Reserve president Robert Kaplan told reporters on Jan. 15 in Dallas. “But we have been warning for quite some time that…the structure of the economy has changed dramatically.” Technological innovation, globalization, and the Fed’s commitment to its inflation target all held down prices, and “those forces are powerful and they are accelerating,” he said.

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Dave Stockman, too, keeps referring to markets. Stop it. A market has a definition, a function, based one-on-one on price discovery. And that simply ceased to exist.

Get Out Of The Bond And Stock Market, Put Your Money In Cash – Stockman (MW)

[..] thus far the market has bounded higher after shaking off a withering decline toward the end of 2018 that culminated in the worst Christmas Eve drop on record. The Dow Jones Industrial Average is up 19.4% since that time, breaking above a psychologically significant at 26,000 level on Friday, while the S&P 500 has advanced 19.5%, the Nasdaq Composite has risen 22.4% and the small-capitalization focused Russell 2000 index has returned more than 25%, according to FactSet data. Much of that gain has been underpinned by a Fed that has signaled that it is likely to slow a reduction of its $4 trillion balance sheet as soon as this year and a willingness to wait before increasing borrowing costs further. Both of those plans had been cited as a source of friction for markets.

However, Stockman has said a yawning deficit and an economic expansion in the U.S. that is making history for its length are signs that a reckoning my be at hand. He says easy-money days cannot last and has ramifications for all, arguing that the Fed must normalize its policy, at some point: “My point is, it’s finally catching up with us. We’ve gotten by with this for 30 years ‘cause the Fed has been monetizing the debt — buying bonds hand over fist. When Greenspan arrived, the balance sheet of the Fed was $200 billion; at the peak it was $4.5 trillion,” he told Cavuto, referring to former Fed boss Alan Greenspan. “We need to wake up and smell the roses here. We’re in year 10 of the longest business expansion in history.

We’re increasing the deficit at the very wrong time. They say it’s $900 billion this year it’ll be $1.2 trillion of borrowing at the same time that the Fed is beginning to shrink its balance sheet, which means they’ll be dumping bonds into the market,” he said.

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All that new debt and still pension systems are being fully gutted.

Global Sovereign Debt Will Top $50 Trillion This Year (ZH)

It has been one week since the US Treasury revealed that the national debt had topped $22 trillion (only 11 months after it had topped the $21 trillion threshold). And as the US budget deficit shows no signs of shrinking thanks to the Trump tax cuts and the death of the Obama-era budget sequester that has allowed for an expansion of federal spending (with more presumably on the way once the Trump infrastructure plan comes into focus), S&P warned on Thursday that worldwide sovereign debt could reach $50 trillion this year. According to Reuters, S&P predicted that governments will borrow some $7.78 trillion this year, up 3.2% since 2018 (the US will constitute more than $1 trillion of that all by itself). That’s a 6% increase in the total debt pile from the year before.

Most of this borrowing will be rolling over long-term debt. “Some 70 percent, or $5.5 trillion, of sovereigns’ gross borrowing will be to refinance maturing long-term debt, resulting in an estimated net borrowing requirement of about $2.3 trillion, or 2.6 percent of the GDP of rated sovereigns,” said S&P Global Ratings credit analyst Karen Vartapetov. Governments, like corporations and individuals, took advantage of low interest rates around the world to step up borrowing in the wake of the financial crisis. Now, with borrowing costs expected to rise, these long-term burdens will become more burdensome to service. And with central banks slowly beginning to allow their inflated balance sheets to run off…

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No collusion.

Mueller Won’t Deliver Report To DOJ Next Week (Hill)

Special counsel Robert Mueller will not deliver his report to the Justice Department on Friday or next week, a Justice Department official told The Hill. The news comes amid broad speculation that Mueller’s probe into Russia’s electoral interference is wrapping up, with several news outlets reporting Wednesday that newly confirmed Attorney General William Barr was preparing to receive Mueller’s final report as soon as next week. The highly anticipated report is expected to cap off a sprawling, nearly two-year investigation into Russia’s attempts to meddle in the 2016 presidential election, a probe that has ensnared multiple former Trump campaign officials and associates.

Next week is already slated to be a busy week in Washington, with former longtime Trump lawyer Michael Cohen appearing for testimony on Capitol Hill and several other major hearings and votes set to take place. President Trump is also slated to travel to Vietnam next week for his second summit with North Korean leader Kim Jong Un, which is scheduled for Wednesday and Thursday. It remains unclear when Mueller will ultimately wrap up and submit his final documentation, though Friday’s news indicates the end of the investigation is at least a week away.

Mueller has been investigating Russian interference and potential coordination between the Trump campaign and Moscow since May 2017, weathering constant attacks from Trump, who views the investigation as a “witch hunt” and has long denied allegations of collusion between his campaign and the Kremlin. In the course of his investigation, Mueller has unveiled charges against more than two dozen Russians for hacking Democratic emails and committing fraud in an elaborate plot to use social media to meddle in the election. The special counsel has also charged six Trump associates with making false statements, illegal foreign lobbying, financial violations and other crimes. However, none of the charges have alleged a conspiracy between the campaign and the Russians to interfere in the election.

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“No acknowledgment that Mr. Schiff & Co. for years have pushed fake stories that accused innocent men and women of being Russian agents. No relieved hope that the country might finally put this behind us. Just a smooth transition—using Russia as a hook—into Mr. Trump’s finances. Mueller who?”

Schiffting to Phase 2 of Collusion (Strassel)

There’s been no more reliable regurgitator of fantastical Trump-Russia collusion theories than Democratic Rep. Adam Schiff. So when the House Intelligence Committee chairman sits down to describe a “new phase” of the Trump investigation, pay attention. These are the fever swamps into which we will descend after Robert Mueller’s probe. The collusionists need a “new phase” as signs grow that the special counsel won’t help realize their reveries of a Donald Trump takedown. They had said Mr. Mueller would provide all the answers. Now that it seems they won’t like his answers, Democrats and media insist that any report will likely prove “anticlimactic” and “inconclusive.” “This is merely the end of Chapter 1,” said Renato Mariotti, a CNN legal “analyst.”

Mr. Schiff turned this week to a dependable scribe—the Washington Post’s David Ignatius—to lay out the next chapter of the penny dreadful. Mr. Ignatius was the original conduit for the leak about former national security adviser Mike Flynn’s conversations with a Russian ambassador, and the far-fetched claims that Mr. Flynn had violated the Logan Act of 1799. Mr. Schiff has now dictated to Mr. Ignatius a whole new collusion theory. Forget Carter Page, Paul Manafort, George Papadopoulos—whoever. The real Trump-Russia canoodling rests in “Trump’s finances.” The future president was “doing business with Russia” and “seeking Kremlin help.”

So, no apologies. No acknowledgment that Mr. Schiff & Co. for years have pushed fake stories that accused innocent men and women of being Russian agents. No relieved hope that the country might finally put this behind us. Just a smooth transition—using Russia as a hook—into Mr. Trump’s finances. Mueller who? What’s mind-boggling is that reporters would continue to take Mr. Schiff seriously, given his extraordinary record of incorrect and misleading pronouncements. This is the man who, on March 22, 2017, helped launch full-blown hysteria when he said on “Meet the Press” that his committee already had the goods on Trump-Russia collusion. “I can’t go into the particulars, but there is more than circumstantial evidence now,” Mr. Schiff declared then. Almost two years later, he’s provided no such evidence and stopped making the claim..

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Perhaps even more than politicians, it’s the media that will keep the collusion tale alive. They wouldn’t know how to make money anymore if they didn’t.

‘Even Nixon Wasn’t Like Him’: Trump’s Bid To Upend Russia Inquiry (G.)

It was yet another bombshell report for a president already ensnared in multiple investigations against his campaign, administration and family members. This time it had to do with hush money paid to women to silence them from speaking about alleged affairs they had with Donald Trump. According to a New York Times report published this week, Trump asked Matthew Whitaker, his controversial acting attorney general, if he could install a loyalist at the helm of the investigation into the hush money.

Although Whitaker declined Trump’s request, the story has raised fresh questions over whether the president was seeking to obstruct justice and how the reported move fits into a broad pattern of Trump attempting to interfere with an investigation concerning himself. Since taking office, Trump’s fixation on the federal inquiry into Russian interference in the 2016 election – and potential collusion between his campaign and Moscow – has spurred a series of actions that could now imperil his presidency and prospects of a second term.

From high-level firings to public misstatements, Trump’s repeated steps to undermine the investigations that have clouded his two years in office paint a picture of a president who is his own worst enemy, legal experts say. “It is quite clear from all the evidence that the president has had the intent to obstruct this investigation,” said Andy Wright, a former associate counsel to Barack Obama and the founding editor of the legal blog Just Security. “It’s been in plain sight.” “It’s a fundamental abuse of power for the president to be trying to shut down an investigation in which he has a personal stake – both as a potential target himself and his political allies and family members,” he added.

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Jim stays on message. I changed the headline from Great Expectations to Great Investigations.

Great Investigations (Kunstler)

Meanwhile, their antics may be eclipsed by the now inevitable inquiry around the misdeeds carried out by public officials in Act I of the show: the Russia Collusion Ruse. Based just on the current Andy McCabe book tour, there will be an awful lot to get to, and it is liable to be far more compelling than the nonsense conjured up by the Three Stooges. Mr. McCabe, in his quest to hand off the hot potato of culpability to his former colleagues, and to sell enough books to pay his lawyers’ retainers, has neatly laid out the case for his orchestrating a coup d’etat within the FBI. It’s an ugly story, and it’s all out there now, like so much spaghetti hurled against the wall, and it won’t be ignored.

There are many other spaghetti wads already plastered on that wall ranging from Hillary Clinton’s Fusion GPS hijinks, to Loretta Lynch’s written assurances to the Clinton campaign that the email server matter would be dropped, to the rather complete failure of the FISA process, and much much more that needs to be ventilated in a court of law. I suspect that Barack Obama and his White House confidents will enter the picture, too, sooner later, and to the great dismay of his partisans who do not want to see his legacy tarnished. Whatever your view of all these dark events, it would be pretty awful for the country to have to see him in a witness chair, but it may be unavoidable. Ditto Hillary, who is liable to go all Captain Queeg-y when she finally has to answer for her campaign’s turpitudes.

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Can both major parties in Britain dissolve in just 4 weeks time?

Theresa May Must Go In Three Months, Cabinet Ministers Say (G.)

Cabinet ministers will make it clear they believe Theresa May should step down after the local elections in May and allow a new leader to deliver the next phase of the Brexit negotiations, the Guardian understands.Senior figures in government have suggested they want the prime minister to leave shortly after the first phase of the Brexit negotiations finishes – or risk being defeated in a vote of no confidence at the end of the year. May wants to stay in place for long enough after Brexit to secure a political legacy beyond the fraught negotiations. But some ministers believe she should announce the timeline for her departure “on a high” after the local election results, paving the way for a Conservative leadership contest over the summer.

Brexiters in the cabinet are keen to see a new leader take over for the next stage of the negotiations with the EU, which May has already pledged will involve more active involvement for politicians rather than advisers. The hardening mood among cabinet ministers on the timeline for her departure will place further pressure on May before a critical week of Brexit talks and votes amid a febrile climate in Westminster. On Thursday the Guardian revealed that remainer ministers emboldened by the departure of three MPs to the Independent Group (TIG) were threatening to rebel against her leadership to prevent a no-deal outcome – daring her to sack them.

And in a fresh blow to May, three cabinet ministers publicly say they would back moves to delay Brexit if she fails to get her deal through parliament. In a joint newspaper article, Amber Rudd, the work and pensions secretary, David Gauke, the justice minister, and the business secretary, Greg Clark, say they want to ensure the UK does not crash out of the EU without a deal on 29 March. And they insist they are prepared to defy the prime minister and join those MPs pushing for an extension to article 50 if there is no significant progress next week.

Writing for the Daily Mail on Saturday, they argue that a no-deal Brexit would wreck the country’s economy and put its security at risk. “If there is no breakthrough in the coming week, the balance of opinion in parliament is clear – that it would be better to seek to extend article 50 and delay our date of departure rather than crash out of the European Union on 29 March,” they write. “It is time that many of our Conservative parliamentary colleagues in the ERG recognised that parliament will stop a disastrous no-deal Brexit on 29 March. If that happens, they will have no one to blame but themselves for delaying Brexit.”

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Both May and Brussels appear to think they stand to gain from a no-deal Brexit. Maybe that makes it more likely than we think.

UK Food Imports From EU Face ‘£9bn Tariff Bill’ Under No-Deal Brexit (G.)

The government is expected next week to spell out its plan to mitigate a potential £9bn food-price shock from a no-deal Brexit, as analysts predict the cost of staples such as beef, cheddar cheese and tomatoes could soar. With just over a month until the Brexit deadline, the Department for International Trade is expected on Monday to publish a list of new import taxes, or tariffs, that will apply to 5200 products, including food and clothing, should the UK crash out of the EU without a deal. The relationship with the EU is key to the price of food because nearly one third of the food eaten in the UK comes from the bloc. At this time of year the situation is more acute because, with UK produce out of season, 90% of lettuces, 80% of tomatoes and 70% of soft fruit is sourced from, or via, the EU.

“Food and drink tariff rates will be higher than those in any other supply chain,” says Richard Lim, chief executive of consultancy firm Retail Economics. “All stages within the food supply chain will experience increased costs, with retailers hit disproportionately as processed goods attract higher duties than raw materials and semi-processed goods.” In 2017 the UK bought about £34bn of groceries from the EU, which arrived on supermarket shelves and at factory gates without being hit by customs duties or other trade costs. But if the UK leaves the EU without a deal, both will fall back on the World Trade Organisation’s “most favoured nation” tariffs, which means they must pay import duties on each other’s trade. On that basis the UK’s 2017 EU food imports would come with a hefty £9.3bn tariff bill on top, according to Retail Economics’s analysis.

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Having been there for 30 years is not exactly a positive thing, given how much things have deteriorated in that time. Hand it over to the kids, they couldn’t possibly do worse.

Dianne Feinstein Snaps At Group Of Environmental Activist Children (ZH)

Armed with an impassioned letter and memorized talking points, the children belonging to three Bay Area environmentalist groups (Sunrise Bay Area, Youth Versus the Apocalypse, and Earth Guardians San Francisco) implored Feinstein to support the Green New Deal. The Senator responded: “Ok, I’ll tell you what. We have our own Green New Deal.” The video skips forward to the children warning Feinstein that “some scientists have said that we have 12 years to turn this around” – referring to a conclusion by a recent UN-backed report that man-made climate change will become irreversible if carbon emissions are not significantly reduced over the next 12 years (which Ocasio-Cortez turned into “the world is gonna end in 12 years if we don’t address climate change”).

“It’s not gonna get turned around in 10 years,” responded Feinstein – drawing a harsh rebuke from an angry chaperone. “Senator if this doesn’t get turned around in 10 years you’re looking at the faces of the people who are going to be living with these consequences,” said the adult – as one of the children chimed in “the government is supposed to be for the people and by the people and for all the people!” Feinstein was not amused. I’ve been doing this for 30 years. I know what I’m doing. You come in here and you say “it has to be my way or the highway.” “I don’t respond to that,” shot back Feinstein. “I’ve gotten elected. I just ran. I was elected by almost a million vote plurality. And, I know what I’m doing. So, you know, maybe people should listen a little bit. -Dianne Feinstein

One kid shot back “I hear what you’re saying but we’re the people who voted you. You’re supposed to listen to us, that’s your job.” “How old are you?” challenged Feinstein. “I’m 16. I can’t vote,” said the girl. “Well you didn’t vote for me,” replied the Senator.

https://twitter.com/sunrisemvmt/status/1099075460649107458

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The new fight for control of the world. Orwell International Inc.

The Cold War in Tech (Barron’s)

Cisco Systems, an early Silicon Valley success story, has become one of the nation’s top tech exporters. Today, roughly half of the networking giant’s sales come from outside the U.S. As foreign countries sought to catch up with U.S. connectivity, Cisco helped plug them in. But a wave of nationalist thinking has put Cisco—and most of its peers—in an uncomfortable position. Earlier this month, Cisco CEO Chuck Robbins described the current climate as “one of the more complex macro, geopolitical environments that I think we’ve seen in quite a while with all the different moving parts.” It’s likely to get worse.

While investors are cheering indications of progress being made toward a resolution of trade issues between China and the U.S., the battle for tech supremacy between the two global superpowers shows few signs of abating. Even as the White House was negotiating on trade with Beijing, it was also contemplating a U.S. ban of telecommunications equipment from Chinese companies like Huawei Technologies, essentially China’s version of Cisco. As President Donald Trump was tweeting about the importance of 5G on Thursday, Secretary of State Mike Pompeo was pushing U.S. allies to ditch Huawei. This is a fight that is not going to end anytime soon. For years, U.S. officials have worried about Chinese equipment being used to infiltrate U.S. networks and businesses for possible espionage and theft of intellectual property.

Even a resolution of the trade war won’t quell those fears. “The perception is that too much of the information- and communication-technology supply chain is centered on China,” says Paul Triolo, who focuses on global technology policy issues for risk consulting firm Eurasia Group. “If we are in a conflict and using infrastructure built by China, they could theoretically hit a button and shut off everything.” “After 30 years of saying companies should optimize supply chains and move some abroad, now we are saying it’s a security concern,” he says. “Adjusting to that is jarring.”

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The sort of thing you know someone will always try, no matter what laws are invented. And it’s not about Silicon Valley, it’s about the CIA through big Tech.

Silicon Valley Wants In On It Pair Of Gene-Edited Chinese Twins (ZH)

A pair of Chinese twins who were gene-edited for resistance to HIV may also have ‘supercharged’ brains, along with possible resistance to age-related cognitive diseases such as Alzheimer’s. In a controversial experiment led by Chinese scientist He Jiankui, the embroys of seven couples had their genes “edited” using a tool known as CRISPR. By removing a gene called CCR5, Jiankui sought to create a natural immunity to HIV – which requires CCR5 to enter blood cells. Based on new research, however, Jiankui may have also left the twins, Lulu and Nana, with improved memory and enhanced cognition, according to MIT Technology Review. They may also enjoy some degree of protection from Alzheimer’s Disease and other maladies which are rapidly being linked to chronic inflammation, as some groups of mice without CCR5 – or who have been given CCR5 inhibitors, experience less severe dementia or Alzheimer’s symptoms.

“The answer is likely yes, it did affect their brains,” says UCLA neurobiologist Alcino J. Silva, whose lap discovered a link between CCR5 and the brain’s ability to form new connections. “The simplest interpretation is that those mutations will probably have an impact on cognitive function in the twins,” says Silva, adding that the exact effect on the girls’ cognition cannot be predicted, which is “why it should not be done.” Jiankui’s human experiments drew harsh rebuke after news of Lulu and Nana’s birth in late October or early November, and has reportedly been fired from his position at the Southern University of Science and Technology (SUSTech) in Shenzhen, China. Jiankui says there are more gene-edited babies on the way.

Silva tells the MIT Technology Review that “because of his research, he sometimes interacts with figures in Silicon Valley and elsewhere who have, in his opinion, an unhealthy interest in designer babies with better brains.” When word of Jiankui’s experiment went public, Silva says he immediately questioned whether enhanced cognition was the real goal of the experiment. “I suddenly realized—Oh, holy shit, they are really serious about this bullshit,” said Silva. “My reaction was visceral repulsion and sadness.” He Jiankui acknowledged that he knew about the potential cognitive benefits of removing the CCR5 gene discovered by the UCLA team during a Q&A session, though he said “I am against using genome editing for enhancement.”

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Brave new world: gene-edited superhumans controlled through embedded technology. That Orwell guy appears smarter by the day.

China Blocks 17.5 Million Plane Tickets Due to Lack of ‘Social Credit’ (Ind.)

The Chinese government blocked 17.5 million would-be plane passengers from buying tickets last year as a punishment for offences including the failure to pay fines, it emerged. Some 5.5 million people were also barred from travelling by train under a controversial “social credit” system which the ruling Communist Party claims will improve public behaviour. The penalties are part of efforts by president Xi Jinping‘s government to use data-processing and other technology to tighten control on society. Human rights activists warn the system is too rigid and may lead to people being unfairly blacklisted without their knowledge, while US vice-president Mike Pence last year denounced it as “an Orwellian system premised on controlling virtually every facet of human life”.

Authorities have experimented with social credit in parts of China since 2014. Points are deducted for breaking the law, but also, in some areas, for offences as minor as walking a dog without a lead. Offences punished last year also included false advertising and violating drug safety rules, said China’s National Public Credit Information Centre. It gave no details of how many people live in areas with social credit systems. [..] The ruling party is spending heavily to roll out facial recognition systems, and human rights activists say people in Muslim and other areas with high ethnic minority populations have been compelled to give blood samples for a genetic database. Those systems rely heavily on foreign technology, which has prompted criticism of US and European suppliers for enabling human rights abuses.

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Feb 212019
 
 February 21, 2019  Posted by at 11:02 am Finance Tagged with: , , , , , , , , , , , ,  


Jan van Eijk The Arnolfini portrait 1434

 

A $3 Trillion Debt Tsunami Is About To Flood The Stock Market (MW)
Attorney General Barr To Announce End Of Mueller Probe Next Week: CNN (ZH)
Mueller Report May Be ‘Anti-Climactic’ – Clapper (Hill)
FBI Top Lawyer Believed Hillary Clinton Should Face Charges (Solomon)
Conservative Split As Tory Rebels Denounce Hardline Brexiters (G.)
How Not To Organise A Split In A Party (Galloway)
UK And Ireland Retailers Warn Of 40% Tariffs On Food In No-Deal Brexit (G.)
UK Economy £100 Billion Smaller Because Of Austerity (G.)
Germany Rebuffs UK Call To Back Off Saudi Arms Freeze (ZH)
Bernie Sanders Raised $6 Million In One Day After Launching Campaign (ZH)
Ocasio-Cortez Refuses To Back Bernie Sanders For 2020 (Ind.)

 

 

They’re all still talking about the markets that aren’t markets. Curious. Is it because it’s all they have? Either way, seems leargely useless to me.

A $3 Trillion Debt Tsunami Is About To Flood The Stock Market (MW)

Will Nasgovitz, who oversees about $1.3 billion in assets as the chief executive of Heartland Advisors, isn’t calling for a “full blown financial crisis,” but, with trillions in corporate debt coming due in the coming years, the industry veteran’s not exactly predicting smooth sailing in the stock market, either. “With interest rates low, the economy strong, and relatively easy lending standards, the thinking went that borrowing to buyback shares or finance acquisitions was a low-risk strategy,” Nasgovitz explained in a recent post. “But the next five years could severely test that Pollyanna view.” Nasgovitz used this chart to illustrate his stance. As you can see, about $3.3 trillion — or 48% of all current outstanding commercial debt — comes due by 2023.

The timing could be problematic. “The sheer volume would be challenging for the market to digest in the best of scenarios, let alone this late in an economic expansion,” Nasgovitz wrote. “Adding to our sense of caution are early signs that lending standards have begun to tighten for commercial and industrial borrowers.” He says that, as banks become more stringent, borrowers could end up paying higher rates just to secure funds to retire outstanding obligations. “While we don’t currently see signs of a full-blown financial crisis on the horizon,” he concluded, “we do believe that excessive debt adds unnecessary challenges to companies in general and will likely be a headwind for heavy borrowers in the intermediate term going forward.”

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Overall sentiment: it won’t amount to much. So the media’s next steps are being prepared in the vein of “Just because Mueller couldn’t find a thing, doesn’t mean it doesn’t exist”.

Russiagate has been the media’s golden goose; what can they turn to now?

Attorney General Barr To Announce End Of Mueller Probe Next Week: CNN (ZH)

Barely a week after being sworn in as the head of the Justice Department, Attorney General William Barr is reportedly planning to announce as early as next week that Robert Mueller has completed his investigation and that a confidential report on Mueller’s findings will be submitted to Congress in the very near future. According to CNN, the preparations – which are in line with an NBC report from late last year that the Mueller report would be completed by the end of February – “are the clearest indication yet that Mueller is nearly done with his almost two-year investigation.” Barr has said that he wants to be as “transparent” as possible while being “consistent with the rules and the law.”

According to the law, Mueller must submit a “confidential” report to the AG after the investigation ends. But the rules don’t require it to be shared with Congress or the public (though, like everything involving the Mueller probe, it will almost certainly leak). One thing that remains unclear is to what extent Mueller’s findings will be shared with Congress (since the DOJ typically frowns on publicizing embarrassing or compromising information about people who haven’t been charged with a crime…though that principle has apparently gone out the window over the last two years). CNN also noted that it’s possible that Mueller has made referrals to other prosecutors besides the New York US attorney who brought charges against Michael Cohen.

The existence of other investigations might also soon come to light. CNN reported that attorneys from the US attorney’s office for Washington DC have been visiting Mueller “more than usual.” Signs that the Mueller probe is winding down have been multiplying in recent weeks. Four of his 17 prosecutors have been reassigned, and the grand jury he has used to secure his indictments hasn’t convened since late January. While Trump is probably hoping that the Russia collusion narrative will decidedly die after the report is released, former DNI James Clapper – whom Trump threatened to strip of his security clearance – warned that the report might leave open the question of whether there actually was collusion between Trump and Russia, giving the release a disappointingly anti-climactic feel, according to the Hill.

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A ‘subtle’ shift: now that going after Trump himself is going nowhere, Clapper et al claim Putin uses Trump as an unwitting asset. Takeaway: they will simply continue their collusion accusations. And Putin is an even easier victim.

Give me one reason why this entire cabal should not be investigated.

As I said yesterday: “Isn’t it supremely ironic that Mueller’s main objective today is trying to come up with some narrative that justifies his own probe? It’s circular ‘logic’ at its very best.

But why is McCabe so cocky about his treasonous(-like) behavior? Imagine someone like him doing an interview like that 2 years (or 6) into Obama’s presidency, saying it was possible Barack was an asset of China. Just imagine.”

Mueller Report May Be ‘Anti-Climactic’ – Clapper (Hill)

Former Director of National Intelligence James Clapper said Wednesday that he’s far from sure that special counsel Robert Mueller’s investigation will clear up questions about President Trump and Russia. He said he was hopeful the Mueller probe will provide some answers, but warned it might not even draw a conclusion on whether there was collusion between the Trump campaign and Moscow. “I think the hope is that the Mueller investigation will clear the air on this issue once and for all. I’m really not sure it will, and the investigation, when completed, could turn out to be quite anti-climactic and not draw a conclusion about that,” Clapper said Wednesday on CNN.

Clapper, a frequent critic of Trump’s, said people in the intelligence community see a strange deference on the president’s part toward Russian President Vladimir Putin. “The strange thing I think that has bothered a lot of people both in and out of the intelligence community is this strange personal deference to Putin by the president. I’ve speculated in the past that the way Putin behaves is to treat President Trump as an asset,” Clapper said Wednesday. He added that if Trump were indeed advancing Putin’s interests, he would more likely be doing so unwittingly.

The White House has lashed out at Clapper over his criticism in the past and announced in August it was reviewing existing security clearances for Clapper and several other former intelligence and law enforcement officials who have criticized the White House. Speculation has ramped up over Trump’s relationship with Russia after it was reported last month that the Justice Department had opened an investigation into whether the president was working on behalf of Moscow’s interests. Former acting FBI Director Andrew McCabe on Friday claimed that he believes “it’s possible” Trump is a Russian asset.

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And there’s Comey again, out to save the country.

FBI Top Lawyer Believed Hillary Clinton Should Face Charges (Solomon)

For most of the past three years, the FBI has tried to portray its top leadership as united behind ex-Director James Comey’s decision not to pursue criminal charges against Hillary Clinton for transmitting classified information over her insecure, private email server. Although in the end that may have been the case, we now are learning that Comey’s top lawyer, then-FBI General Counsel James Baker, initially believed Clinton deserved to face criminal charges, but was talked out of it “pretty late in the process.” The revelation is contained in testimony Baker gave to House investigators last year. His testimony has not been publicly released, but I was permitted to review a transcript.

During questioning by Rep. John Ratcliffe (R-Texas), Baker was unequivocal about his early view that Clinton should face criminal charges. “I have reason to believe that you originally believed it was appropriate to charge Hillary Clinton with regard to violations of law — various laws, with regard to mishandling of classified information. Is that accurate?” Ratcliffe, a former federal prosecutor, asked Baker. Baker paused to gain his lawyer’s permission to respond, and then answered, “Yes.” He later explained why he came to that conclusion, and how his mind was changed: “So, I had that belief initially after reviewing, you know, a large binder of her emails that had classified information in them,” he said.

“And I discussed it internally with a number of different folks, and eventually became persuaded that charging her was not appropriate because we could not establish beyond a reasonable doubt that — we, the government, could not establish beyond a reasonable doubt that — she had the intent necessary to violate (the law).” Asked when he was persuaded to change his mind, Baker said: “Pretty late in the process, because we were arguing about it, I think, up until the end.” Baker made clear that he did not like the activity Clinton had engaged in: “My original belief after — well, after having conducted the investigation and towards the end of it, then sitting down and reading a binder of her materials — I thought that it was alarming, appalling, whatever words I said, and argued with others about why they thought she shouldn’t be charged.”

His boss, Comey, announced on July 5, 2016, that he would not recommend criminal charges. He did so without consulting the Department of Justice (DOJ), a decision the department’s inspector general (IG) later concluded was misguided and likely usurped the power of the attorney general to make prosecutorial decisions. Comey has said, in retrospect, he accepts that finding but took the actions he did because he thought “they were in the country’s best interest.”

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More will follow. 5 weeks left.

Conservative Split As Tory Rebels Denounce Hardline Brexiters (G.)

Three Conservative MPs who resigned to join a new independent group on Wednesday said Theresa May had allowed their former party to fall prey to hardline Brexiters and declared that the Tory modernising project had been destroyed. In the latest evidence that Brexit is reshaping the political landscape, Heidi Allen, Anna Soubry and Sarah Wollaston, all outspoken critics of May’s stance on Europe, said the Conservative party as they had known it under David Cameron was dead. “I’m not leaving the Conservative party – it has left us,” said Soubry at a hastily convened press conference around the corner from the House of Commons. “The modernising reforms that had taken years to achieve were destroyed.”

Allen was asked if she could ever return to the Conservatives and answered: “If we do our jobs properly, there won’t be a Tory party to go back to.” She added: “We’re about creating something better that is bang smack in the centre ground of British politics that people out there, I am convinced, we are convinced, want.” The dramatic resignations – announced shortly before May confronted Jeremy Corbyn at prime minister’s questions – sent shockwaves through Westminster, where MPs had barely digested news of the Labour split. The move reduces May’s already tenuous working majority to eight, raising still more questions over her authority amid rumours that there could be further Tory defections.

On Wednesday night, Allen told ITV’s Peston that “a third of the party” – around 100 of her former colleagues – shared her frustrations at its direction. The Tory former attorney general Dominic Grieve told the BBC: “The government which I am supporting implementing a no-deal Brexit – what would I do? I would not be able to maintain my support of the government. I would have to leave the party.”

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George Galloway is right: center liberal parties are exactly what the whole world is rejecting.

How Not To Organise A Split In A Party (Galloway)

Just seven MPs announced their departure from Jeremy Corbyn’s Labour Party and though there may be others to come this was their first rank. And there lies the first problem. Other than Chuka Umunna virtually nobody has ever heard of the new Independent Group of MPs who were quickly dubbed the ‘Seven Dwarfs’. [..] From a crowded field I’d say the next biggest blunder was registering their parliamentary factions as a private company in a transparent effort to avoid…transparency! It’s true that Chuka and co are the corporate suit types and most of them are more familiar with the boardroom than the boiler room but no parliamentary group in history has turned themselves into a business!

The reasons – millions of them – are not hard to discern. A political party must declare who’s funding it and how much. A private company doesn’t. But again what seemed like a wheeze is in fact a blunder. I’m now free to speculate that they’ve already received millions from Hamas, Hezbollah, Iran and President Putin. It’s probably not true, but how can one tell? [..] I may be wrong and Manchester United may win the Champions League but I’m perfectly sure Centrist neo-liberal politics are currently out of fashion throughout the world. I base this on 14 weeks of mayhem on the streets of France, and not much more than that in President Macron’s opinion poll ratings. On Mrs Merkel slouching out of the German Chancery in ruins. On the Rushmore like ruin of Hillary Clinton. On the portrait of Dorian Gray that is the haunted face of the most hated man in Britain, Tony Blair.

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And that’s only the tariffs.

UK And Ireland Retailers Warn Of 40% Tariffs On Food In No-Deal Brexit (G.)

A no-deal Brexit could lead to tariffs of 40% or more being imposed on food such as beef and cheddar cheese, driving up prices in shops and squeezing household budgets across the UK and Ireland, retail organisations from both countries have warned. With mounting fears that the UK could leave the European Union without an agreement in 36 days’ time, the British Retail Consortium (BRC), Northern Ireland Retail Consortium (NIRC) and Retail Ireland, issued a joint warning that this outcome could lead to delays at borders and shortages of fresh meat, fish, fruit and vegetables. The scheduled withdrawal on 29 March comes at a time in the year when the UK imports a lot of fresh, out-of-season, produce – 90% of the lettuce consumed in Britain, 80% of tomatoes and 70% of soft fruits come from, or arrive via, Europe.

Increased tariffs, the devaluation of sterling and new regulatory checks would drive up the cost of fresh food and drink, which would be passed on to consumers, the retail bodies warned. If the UK leaves the EU without a deal, both fall back on the World Trade Organization’s most favoured nation tariffs, which means import duties on everyday food items from fruit to cheese. This would mean a 42% tariff on imported cheddar, 46% on mozzarella, 40% on beef, 21% on tomatoes and 15.5% on apples, the BRC said. Last year one of the UK’s largest dairy producers, based in Northern Ireland, warned that leaving the customs union under a hard Brexit could lead to the price of meat doubling in the UK and the price of dairy, half of which is imported, rising by up to 50%.

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Imagine taking that into a severe recession.

UK Economy £100 Billion Smaller Because Of Austerity (G.)

Austerity policies from the Treasury have resulted in slower growth in every year since 2010 and left each household £300 a month worse off as a result, a thinktank has said. The New Economics Foundation said its analysis of the impact of tax and spending changes since the Conservatives came to power, first as part of a coalition with the Liberal Democrats, had left the economy £100bn smaller than it would otherwise have been. Although the peak impact of the attempt to reduce a record peacetime budget deficit occurred during the first two years of the 2010-15 parliament, the thinktank said austerity was still acting as a drag on output. The NEF said the cumulative effect of tax, public spending and welfare adjustments on growth by the end of the 2018-19 financial year would be to leave the average household £3,629 a year worse off – the equivalent of £1,495 per person.

The latest public finances figures, due out on Thursday, will show whether the chancellor, Philip Hammond, is on course to hit his forecast for a budget deficit in 2018-19 of £25.5bn – one sixth of its level in the aftermath of the financial crisis and deep recession of 2008-09. Alfie Stirling, head of economics at the NEF, said work by the Office for Budget Responsibility and the Institute for Fiscal Studies made it possible to isolate the effects of austerity. “At this time of year there is often renewed speculation over whether the chancellor will meet his year-end deficit targets by March. But for nine years, the elephant in the room has largely been missed: the sheer scale of economic damage that these targets have contributed to in the first place.”

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The Germans have a much smaller weapons industry.

Germany Rebuffs UK Call To Back Off Saudi Arms Freeze (ZH)

Germany is feeling the pressure from western allies over its weapons exports freeze in the wake of the Saudi killing of Jamal Khashoggi, a freeze first announced in November, which included plans to reject any future export licences to Riyadh, but not previously approved deals. German allies like the UK have lately implored the German government to soften its stance, noting the potential broader economic impact on Europe. British foreign minister Jeremy Hunt, currently in Berlin to discuss the terms of Brexit, reportedly wrote to the German foreign minister, Heiko Maas, in a private letter first revealed by Der Spiegel that UK defense companies would be hindered in contractual obligations related to Eurofighter Typhoon and the Tornado fighter jet delivery, namely to supply parts affected by the German arms freeze.

Hunt told Maas in the letter published in German press: “I am very concerned about the impact of the German government’s decision on the British and European defence industry and the consequences for Europe’s ability to fulfil its Nato commitments.” This follows comments by German chancellor Angela Merkel at the past weekend’s Munich Security Conference acknowledging the need for “common export controls guidelines” across Europe. She said during a question-and-answer session after her speech at the conference: “We have because of our history very good reasons to have very strict arms export guidelines, but we have just as good reasons in our defense community to stand together in a joint defense policy. And if we want … to develop joint fighter planes, joint tanks, then there’s no other way but to move step-by-step towards common export controls guidelines.”

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It’s like nothing changed in 4 years. Only this time Bernie may be the favorite.

Bernie Sanders Raised $6 Million In One Day After Launching Campaign (ZH)

Just one day after officially launching his campaign for the 2020 Democratic nomination during an interview on Vermont Public Radio, Bernie Sanders has already raised more than $6 million through more than 220,000 individual contributions, according to CNN. Sanders, who consistently ranks near the top of most polls alongside former Vice President Joe Biden, saw the money pour in from donors in all 50 states. The average contribution was $27, which is roughly in line with the average contribution from Sanders 2016 upstart primary campaign against Hillary Clinton, in which he won a number of crucial primaries (all while actively working against the DNC). Confirming his outsize popularity in an increasingly crowded field, the self-described “Democratic Socialist”‘s haul dwarfs the $300,000 raised by Elizabeth Warren during the 24 hours after her official campaign launch.

Of the $6 million raised, some 10% (about $600,000) came in the form of recurring donations, providing “a huge, dependable grassroots donor base that will afford the campaign a consistent budgeting baseline.” During his last race, Sanders regularly touted the fact that his campaign was largely funded by small donations. And it appears this is already emerging as a central theme for the 2020 race. “The only way we will win this election and create a government and economy that work for all is with a grassroots movement – the likes of which has never been seen in American history,” Sanders said in his message announcing his campaign. “They may have the money and power. We have the people.”

On top of that $6 million haul, Sanders is entering the race with more than $9 million left in his US Senate campaign committee: funds that he can transfer to his presidential campaign. That puts him behind only Warren ($11 million) and Sen. Kirsten Gillibrand ($10.3 million).

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She has no reason to support anyone at all.

Ocasio-Cortez Refuses To Back Bernie Sanders For 2020 (Ind.)

Alexandria Ocasio-Cortez has refused to endorse Bernie Sanders for the 2020 Democratic nomination, despite working on the senator’s first presidential campaign. A spokesperson for Ms Ocasio-Cortez, like Mr Sanders a self-described democratic socialist, refused to comment directly on the 77-year-old’s Tuesday announcement he is running for a second time. “We’re excited to see so many progressives in the race,” spokesperson Corbin Trent said. “We’re not thinking at all about the next election.” Any endorsement by Ms Ocasio-Cortez is likely to be influential on the outcome of the race, thanks to her massive support among the grassroots of the party. But the 29-year-old, a congresswoman for New York, is unlikely to offer an endorsement before her state’s Democratic primary next year, and may even permanently withhold any explicit support for a single candidate.

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