Oct 082022
 
 October 8, 2022  Posted by at 8:32 am Finance Tagged with: , , , , , , , , ,  67 Responses »


Marc Chagall The watering trough 1925

 

Putin and Zelensky To Attend G20 – Indonesia (RT)
Merkel: Lasting Peace In Europe Only Possible With Russia’s Input (RT)
Russia Abandons The Dream Of A Greater Europe (RT)
US Media’s Intellectual No-Fly-Zone on Nord Stream (FAIR)
Lavrov Explains Why Russia Sees Ukraine As A Threat (RT)
EU Again Urged To Open Wallet For Kiev (RT)
Belgium Fails To Support New Round Of Sanctions Against Russia (RT)
Orban Urges Changes To EU Sanctions Policy (RT)
Joe Biden Is Not A Real President (Scarry)
OPEC Humiliates President Biden On A Global Stage (QTR)
Luxembourg Raises Red Flag Over Energy Price Caps (RT)
Citi: Financial Crisis May Surprise EU (RT)
November Surprise? (Jim Kunstler)
Washington Post Lying About Kremlin ‘Turmoil’ – Moscow (RT)
When Anti-Government Speech Becomes Sedition (Whitehead)
CDC: Record Number Of Children Hospitalized With Weakened Immune Systems (ZH)

 

 

This morning: Explosions on the Kerch bridge (Crimean bridge), which connects Crimea with Russia.

 

 

 

 

Macgregor

 

 

 

 

Ed Dowd

 

 

 

 

 

 

“We are deciding which hotels to put them up in – one for Mr. Putin and one for Mr. Zelensky..”

“..his press secretary, Sergey Nikiforov, in a comment to Ukrainian media, denied the information that Zelensky had decided to visit the G20 summit..”

Putin and Zelensky To Attend G20 – Indonesia (RT)

Russian President Vladimir Putin and his Ukrainian counterpart, Vladimir Zelensky, will both travel to Bali in November for the G20 summit, an Indonesian diplomat has told UAE’s The National newspaper. If true, the summit will be the first event attended by both leaders since Russia’s military operation in Ukraine began. “Both have agreed [to attend],”Indonesia’s ambassador to the United Arab Emirates, Husain Bagis, told The National on Friday. He conceded that “the situation isn’t easy because of the Ukraine-Russia war,” and said that his government is already planning how to manage the arrival of the two leaders. “We are deciding which hotels to put them up in – one for Mr. Putin and one for Mr. Zelensky,” he said.

The Kremlin confirmed in June that Putin would attend the summit, although spokesman Dmitry Peskov said on Friday that the format of Putin’s participation “is still not defined.” Kiev stated in August that Zelensky “believes that he should be on the territory of Ukraine,” but would “think about”making the trip if Putin were to attend in person. Today his press secretary, Sergey Nikiforov, in a comment to Ukrainian media, denied the information that Zelensky had decided to visit the G20 summit. US President Joe Biden and a number of other Western leaders urged Indonesian President Joko Widodo not to invite Putin to the summit in Bali.

However, Widodo resisted the pressure campaign and invited the Russian leader as planned. With Widodo having met both Zelensky and Putin earlier this summer in a bid to “invite the two leaders to open dialogue and stop the war,” Bagis told The National that Indonesia aims “to make the G20 a platform for peace, not conflict.” Biden also appears to have softened his exclusionary stance toward Putin, telling reporters on Thursday that it “remains to be seen” whether he would meet the Russian president on the sidelines of the summit. The State Department quickly stepped in to say that in the view of the entire government, “it cannot be business as usual when it comes to Russia.” Although Ukraine is not one of the world’s 20 largest economies, Zelensky was invited to Bali as a guest.

Read more …

Sustainable peace = Green peace?!

Wonder if Merkel is involved in secret talks with Russia.

Merkel: Lasting Peace In Europe Only Possible With Russia’s Input (RT)

Sustainable peace in Europe may only be achieved if Russia is part of it, former German Chancellor Angela Merkel said on Thursday. Speaking during the 77th anniversary of the German newspaper ‘Suddeutsche Zeitung,’ Merkel explained that while the West has been adamant in its support for Ukraine as the nation remains locked in conflict with Russia, it should also keep its mind open about what might seem as “unthinkable” now – Moscow’s future role in Europe’s affairs. She stressed that “a future European security architecture within international law will meet the requirements” only if it involves Russia. “As long as we haven’t achieved that, the Cold War is not really over either,” she added.

Merkel described February 24 – the day Russia launched its military campaign in Ukraine – as a “turning point,” adding that statements made by various parties to the conflict should be taken “seriously and not to be classified as a bluff from the start.” She was apparently referring to recent comments made by Russian President Vladimir Putin, who signaled that Moscow would use “all means to defend Russia and our people” if its territorial integrity was threatened. He also warned the West that those who use nuclear blackmail against Russia “should know that the wind rose can turn around.”

Merkel earlier urged the Western world to take Putin and his words seriously, arguing that such an approach is “by no means a sign of weakness,” but rather “a sign of political wisdom.” She also noted that former German chancellor Helmut Kohl, who before his death, was widely regarded as her political mentor, would have kept an open mind about “how relations to and with Russia could one day be redeveloped” after hostilities in Ukraine end. Such a stance, however, did not sit well with Ukrainian officials. Last week, Andrey Melnik, Kiev’s outgoing ambassador to Berlin, called Merkel’s attitude towards Russia and its role in European security “almost perverse.”

Read more …

“A Greater Europe didn’t happen; a Greater Asia that includes Russia is de facto emerging.”

Russia Abandons The Dream Of A Greater Europe (RT)

Re-uniting the divided people of Russia and gathering the lands where they live is essentially the core element of the new Russian idea that Putin is offering to his compatriots. The immediate task of course is to integrate the new territories that have just joined Russia following the referendums. This requires a major effort in many areas and at various levels. It is anything but easy. Russian forces, which for months have been advancing on Ukrainian territory, suddenly find themselves in a situation where they have to abandon some areas which are now legally Russian land, populated by Russian citizens who just voted in the referendums and now face severe reprisals at the hands of the counter-attacking Ukrainians.

Next comes the need to rebuild the cities and villages ravaged in the war, repair damaged infrastructure, restart the economy, provide communal services, and re-organize public administration, health services, and education. Of paramount importance is socializing the millions of residents of the four regions who were automatically granted Russian citizenship, in the Russian national environment. Moscow has some experience of that from 2014 when Crimea and Sevastopol joined Russia, but doing this in a wartime situation is more challenging. A lot will depend, of course, on how the Russian forces cope on the frontline that passes very close to Donetsk and Kherson, and which still leaves the city of Zaporozhiye in Ukraine’s rear.

Even if the Ukrainian counter-offensive runs out of steam and the Russians resume their advance, none of these tasks can be accomplished quickly. This part of the new Russian national idea will keep the nation busy for a long time. Putin’s concept, however, doesn’t stop there. It is not so much about restoring the Soviet Union: in Putin’s words, such a restoration is not Moscow’s objective. The Baltics, the South Caucasus and Central Asia are probably not envisaged as part of the new construct. However, as Foreign Minister Sergei Lavrov hinted on the State Duma floor, in future other Ukrainian regions might be given the chance to follow Kherson and Zaporozhiye. To Putin, Greater Russia is a distinct civilization which opposes not only America’s hegemonic policies, but also the West’s projection of its values as universal.

This is an about-face not only from Gorbachev’s musings about a common European home, but also from Putin’s own travails in trying to forge a Greater Europe from Lisbon to Vladivostok, and his efforts to find a way for Russia to join NATO. A Greater Europe didn’t happen; a Greater Asia that includes Russia is de facto emerging. As to a Greater Russia, this requires more than a leader’s imagination. The Soviet Union, as the living generations remember it, was very much the product of the Great Patriotic War. The hybrid war with the West, of which Ukraine is only a small part, will doubtless reshape Russia. The question is, will it also transform it to fit the vision of a powerful economy and a vibrant society, faithful to its declared values – the substance, rather than the form of a Greater Russia.

Read more …

“A 2019 Pentagon-funded study from the RAND Corporation on how best to exploit “Russia’s economic, political and military vulnerabilities and anxieties” included a recommendation to “Reduce [Russian] Natural Gas Exports and Hinder Pipeline Expansions.”

US Media’s Intellectual No-Fly-Zone on Nord Stream (FAIR)

Any serious coverage of the Nord Stream attack should acknowledge that opposition to the pipeline has been a centerpiece of the US grand strategy in Europe. The long-term goal has been to keep Russia isolated and disjointed from Europe, and to keep the countries of Europe tied to US markets. Ever since German and Russian energy companies signed a deal to begin development on Nord Stream 2, the entire machinery of Washington has been working overtime to scuttle it. A 2019 Pentagon-funded study from the RAND Corporation on how best to exploit “Russia’s economic, political and military vulnerabilities and anxieties” included a recommendation to “Reduce [Russian] Natural Gas Exports and Hinder Pipeline Expansions.”

The study noted that a “first step would involve stopping Nord Stream 2,” and that natural gas “from the United States and Australia could provide a substitute.” This RAND study also prophetically recommended “providing more US military equipment and advice” to Ukraine in order to “lead Russia to increase its direct involvement in the conflict and the price it pays for it,” even though it acknowledged that “Russia might respond by mounting a new offensive and seizing more Ukrainian territory.” The Obama administration opposed the pipeline. As part of the major sanctions package against Russia in 2017, the Trump administration began sanctioning any company doing work on the pipeline. The move generated outrage in Germany, where many saw it as an attempt to meddle with European markets. In 2019, the US implemented more sanctions on the project.

Upon coming into office, President Joe Biden made opposition to the pipeline one of his administration’s top priorities. During his confirmation hearings in 2021, Secretary of State Anthony Blinken told Congress he was “determined to do whatever I can to prevent” Nord Stream 2 from being completed. Months later, the State Department reiterated that “any entity involved in the Nord Stream 2 pipeline risks US sanctions and should immediately abandon work on the pipeline.” In July 2021, the sanctions were relaxed only after contentious negotiations with the German government. The New York Times (7/21/21) reported that the administration and Germany still had “profound disagreements” about the project.

Read more …

“We all remember how [Zelensky] declared in January Ukraine’s intention to acquire nuclear weapons. Apparently, this idea has long been stuck in his mind..”

Lavrov Explains Why Russia Sees Ukraine As A Threat (RT)

A call by Ukrainian President Vladimir Zelensky for NATO members to deploy nuclear weapons against Russia is a reminder of why Moscow launched military action against his country, Russian Foreign Minister Sergey Lavrov has said. “Yesterday, Zelensky called on his Western masters to deliver a preemptive nuclear strike on Russia,” Moscow’s top diplomat stated during a media conference on Wednesday. In doing so, the Ukrainian leader “showed to the entire world the latest proof of the threats that come from the Kiev regime.” Lavrov said Russia’s special military operation had been launched to neutralize those threats. He dismissed as “laughable” an attempt to downplay Zelensky’s words made by his press secretary, Sergey Nikoforov. “We all remember how [Zelensky] declared in January Ukraine’s intention to acquire nuclear weapons. Apparently, this idea has long been stuck in his mind,” the Russian minister said.


On Thursday, Zelensky told the Australian Lowy Institute that NATO must carry out preemptive strikes against Russia so that it “knows what to expect” if it uses its nuclear arsenal. He claimed that such action would “eliminate the possibility of Russia using nuclear weapons,” before recalling how he urged other nations to preemptively punish Russia before it launched its military action against his country. “I once again appeal to the international community, as it was before February 24: Preemptive strikes so that [the Russians] know what will happen to them if they use it, and not the other way around,” he said. His spokesman then claimed that people interpreting Zelensky’s words as a call for a preemptive nuclear strike were wrong, and that Ukraine would never use such rhetoric.

Read more …

Cold and hunger and billions for Azov. A winning model.

EU Again Urged To Open Wallet For Kiev (RT)

Josep Borrell, the EU High Representative for Foreign Affairs, will urge member states to set aside more funds to cover enhanced military assistance for Ukraine. The top diplomat shared his plan with reporters at an informal EU summit in Prague on Friday. “I will ask the leaders to support the proposal for a new tranche for European Peace Facility to continue providing military support to Ukraine, also to the training mission,” Borrell said, as quoted by Reuters. Earlier this week Borrell expressed hope that at the next Foreign Affairs Council gathering on October 17, the EU will be able to “formally launch” its training mission for Ukrainian armed forces. Writing in his blog, the diplomat also claimed that the EU would “reinforce” its strategy of supporting Ukraine – “militarily, financially and politically.”

The European Peace Facility (EPF) that Borell referred to, is a mechanism created last year to enhance the EU’s ability to act as a global security provider. The EPF reimburses governments for military equipment supplied to Kiev, “including items designed to deliver lethal force for defensive purposes.” The latest round of funding for Ukraine under the EPF, worth €500 million, was agreed by the European Council in July. With this package, the total EU contribution for the country within this framework amounts to €2.5 billion. The EPF has a ceiling of about €6 billion and is supposed to support not only Ukraine but also other countries. As EU nations face an energy and cost-of-living crisis, exacerbated by anti-Russia sanctions and a reduction in Russian energy supplies, Borrell earlier urged people in the bloc to combat “the temptation to abandon Ukraine.”

Responding earlier this week to the EU’s plan of creating a training mission for Kiev’s armed forces, Russian Foreign Ministry spokeswoman Maria Zakharova said that such a move would only “fix the EU in the status of a participant in the conflict.” In April, she accused the bloc of turning into “NATO’s economic relations department.” This followed Borrell’s tweet that “This war (in Ukraine) must be won on the battlefield.” Moscow has consistently warned Western countries against providing military support to Kiev. It argues that such assistance would only prolong the conflict and will lead to unnecessary casualties. Ukraine, in turn, has repeatedly claimed that the EU is too slow in its weapons supplies and that it doesn’t always provide what Kiev had requested.

Read more …

I found this strange. Macron wanted a new club, the European Political Community (EPC), which is EU plus some others?! Why? Betcha it’s so Ukraine can be part of some club too.

Belgium Fails To Support New Round Of Sanctions Against Russia (RT)

The Belgian government decided against endorsing a new round of EU anti-Russia trade restrictions, the local press reported on Thursday, citing remarks made by Prime Minister Alexander De Croo. Speaking on the sidelines of the European Political Community (EPC) summit in Prague, Czech Republic, the head of the Belgian government explained that “as the economic cost of sanctions becomes higher, it becomes difficult to show solidarity” with Ukraine. “The sanctions have worked very well so far,” the prime minister said, “but the further we go, the more we talk about sanctions that hurt our own economy more than Russia’s.” His country therefore declined to support the eighth package of sanctions when EU member states voted on it this week.

Belgium didn’t vote against it either, because “we do not want to break European solidarity,” De Croo was quoted as saying. A vote against the proposal any EU member state would have blocked the package from being approved. Belgium was reportedly the only nation to abstain. Earlier this week, Belgian MP Andre Flahaut, who represents the province of Walloon Brabant, expressed concerns about the impact of the upcoming sanctions on his constituents. Two factories owned by the Russian metals giant NLMK, which are located in the Belgian province, may have to shut down, the lawmaker warned. The EU ultimately allowed a transition period of two years to switch from semi-finished steel products originating in Russia to alternative supplies.

There were also concerns in Belgium that the EU would try to restrict trade in Russian diamonds, potentially impacting the jewelry businesses of Antwerp. Some news outlets reported that the country blocked the proposed inclusion of such sanctions in the package. When asked about Russian gemstones, Prime Minister De Croo said his government would not have opposed a ban, if it were necessary, but the European Commission decided against it because imports from Russia had fallen significantly without any formal restrictions. The EPC is a new political club proposed earlier this year by French President Emmanuel Macron. The forum is supposed to bring together EU member states and nations that aspire to become part of the economic bloc, plus its traditional allies like the UK and Norway. The meeting of EPC leaders in Prague is the first of its kind.

Read more …

Orban could soon walk out. They refuse to give him his money anyway. Why stay?

Orban Urges Changes To EU Sanctions Policy (RT)

Sanctions imposed by the EU on Russia over the conflict in Ukraine have failed, Hungarian Prime Minister Viktor Orban said on Thursday, urging Brussels to change its policy. “The sanctions didn’t fulfill the hopes that were pinned on them, the war hasn’t ended,” Orban wrote on Facebook. “Europe is slowly bleeding and Russia is making money in the meantime,” he pointed out. The Hungarian leader said that it was obvious to him that “the failed policy of Brussels must be changed.” The statement was made on the same day that the EU announced an eighth round of sanctions on Russia. The new curbs include an oil price cap, trade restrictions amounting to 7 billion euros and individual sanctions against 30 people and seven entities. The move comes after the official inclusion of Donetsk and Lugansk People’s Republics as well as Kherson and Zaporozhye Regions into Russia [..]


Orban has frequently criticized the EU’s sanctions on Russia, calling them counterproductive. Hungary, which is heavily dependent on Russian energy, has maintained a relatively neutral stance during the conflict in Ukraine, condemning the use of force by Moscow, but refusing to supply weapons to Kiev. Brussels expected that the unprecedented restrictions would cripple Russia’s economy and prevent it from funding its military operation. But Moscow was able to redirect its oil and gas to Asian markets, while also profiting from growing energy prices. The policy has also largely backfired for the EU, causing a spike in inflation, and putting Europe into an energy crisis. The situation deteriorated even further in late September when the Nord Stream pipelines were sabotaged.

Read more …

“Biden Threatening Nuclear Armageddon After Six Years of Media Freakout Over Trump Tweets”

Joe Biden Is Not A Real President (Scarry)

Did anyone else burst into a bout of uncontrollable, psychotic laughter upon reading the report that President Biden just told a room full of Democrat donors that the risk of nuclear “armageddon” has arrived? I can’t be the only one. Here are some headlines from the not-too-distant past that immediately came to mind: • We must Trump-proof the nuclear codes before 20243 NBC News, March 12, 2022 • Gen. Milley feared Trump might launch nuclear attack, made secret calls to China, new book says USA Today, Sept. 14, 2021 • Trump is leading us into nuclear war, says Daniel Ellsberg (and he should know, he used to plan them) Canadian Broadcasting Corporation, Feb. 1, 2018 • Donald Trump s Nuclear-War Threat The New Yorker, Aug. 9, 2017 • Clinton Says Trump Could Lead US Into Nuclear War Roll Call, June 2, 2016.

So, wait a second. You mean we just spent the last six years with all of Washington and the national media swearing to voters that Trump had us on the brink of nuclear annihilation, only for it to be Biden, their choice for president, to get us right up on the cliff’s edge? If that doesn’t have you pulling tufts of hair out of your scalp until it bleeds, check your pulse. This can’t be real. Biden has to be fake. This must be a computer simulation. For four years under Trump, gas was cheap, the stock market was booming, and a trip to the grocery store didn’t require customers to take out a second mortgage.

Now under Biden, OPEC is gratuitously choking the energy supply, basic necessities are scarce, and a major war has American taxpayers spending more than $67 billion (and counting) to a country that’s 5,000 miles away. Oh, and now we have to worry about a nuclear confrontation with a global superpower! sIf it were a movie script, not a single producer would find it believable. The writer would never work again. But this is real? We elected a president, in earnest, who is this incompetent and terrible? It’s nuclear war he’s warning of! This is the absolute worst-case scenario. The severity can’t be overstated. There aren’t enough mean Trump tweets in the world to excuse the state of things under this “president.” I refuse to believe it. Biden isn’t a real president.

Read more …

“..they 1) are not our friends, 2) do not care what we want, 3) do not take us seriously and 4) are not here to help us and/or Biden get re-elected by lowering prices..”

OPEC Humiliates President Biden On A Global Stage (QTR)

[..] yesterday OPEC humiliated President Biden on a global stage by cutting oil production after he specifically lobbied them not to. There’s no “nice” way of putting it – they straight-up snubbed the U.S. and have now, in my opinion, made it officially clear that they 1) are not our friends, 2) do not care what we want, 3) do not take us seriously and 4) are not here to help us and/or Biden get re-elected by lowering prices. To use Biden’s parlance, “Let me tell you something, Jack – we’re not in bed with the Saudis anymore. They are more allied with China and Russia than they have ever been, at arguably the most crucial moment in recent history for our global economy.”

As I pointed out last night on my podcast, there was nothing quite like the “fist bump heard round the world” a couple months ago when President Biden – who spends his time here domestically fighting for “equality” and human rights – decided to embrace the Saudis, and their track record of disapproving of gay rights, murdering journalists and multiple other human rights violations – instead of simply ramping up domestic oil production here in the U.S. Biden probably went into the meeting he had with MBS months ago thinking we had some type of leverage, like we have had decades ago. The sad reality is that we simply don’t anymore: the Saudis have the oil, they have gold, and now they have allies just as big and powerful as the U.S. when combined. And those allies provide financial and military support at a crucial juncture for geopolitics.

Meanwhile, our President remains tone deaf and while his supporters remain immune to what can only be described as blatantly obvious double standards. With the left hand, Biden was vilifying Exxon and Chevron here in the U.S., basically encouraging them to not bring more supply online, whilst blaming “gas station owners” and other people who don’t set the price of refined fuels. With the right hand, he was fist bumping a man who publicly disapproves of gay rights and ordered the murder of a critical journalist, in order to try and get him to unleash more oil on the global stage. And instead of him taking us seriously, he did the exact opposite of what Biden wanted yesterday – cut oil production, raising prices – and humiliated Biden on the global stage.

Read more …

“Serbian Interior Minister Aleksandar Vulin has described the eighth package of anti-Russia penalties as the “first EU sanctions package” against Serbia.”

Luxembourg Raises Red Flag Over Energy Price Caps (RT)

The European Union may be left with no energy supplies after introducing gas price caps, Luxembourg’s Prime Minister Xavier Bettel said as he arrived at the bloc’s summit in Prague on Friday. “Implementing a price cap is not the only thing,” Bettel said. “Because, after, maybe we can’t get energy. So then, maybe we have a price cap but no energy.” EU leaders are expected to discuss how to deal with gas prices to curb soaring energy bills during their informal summit in the Czech capital. The talks will include a proposal on a gas price cap. “We have to know we’re not the only customers in the world,” he added. “So, we have to be very careful about decisions that we take that sound good on paper but where consequences can be problematic.”


The issue has been hotly contested for weeks, with Germany, Denmark, and the Netherlands in opposition to any form of cap due to concerns regarding security of supply. On Thursday, Brussels announced the eighth package of restrictions on Russia, which includes a price cap and “further restrictions” on the maritime transportation of Russian crude oil and petroleum products to third countries. The latest batch of penalties has been blasted by several EU nations, including Hungary and Serbia. Earlier, Hungarian Prime Minister Viktor Orban said that anti-Russia sanctions had failed, adding that the bloc was “slowly bleeding” due to the drastic steps. Meanwhile, Serbian Interior Minister Aleksandar Vulin has described the eighth package of anti-Russia penalties as the “first EU sanctions package” against Serbia.

Read more …

“The euro area is at risk of a financial meltdown on the same scale as the crisis it suffered a decade ago..”

They should be so lucky.

Citi: Financial Crisis May Surprise EU (RT)

The euro area is at risk of a financial meltdown on the same scale as the crisis it suffered a decade ago, Citi analysts have told CNBC. They cited Germany’s massive energy relief plan as the major threat to the bloc’s stability, the media outlet reports on Friday. According to the report, Wall Street bank analysts have raised concerns about the violent bond market moves and the European governments’ plans to borrow vast sums of money. They said that German Chancellor Olaf Scholz’s relief package, worth €200 billion ($195 billion) and aimed at tackling soaring energy prices, “may soften the coming recession but also poses risks.” Those risks relate to the question of how the package will be financed and what that could do to inflation, to Germany’s sovereign bond yields, to the ECB’s benchmark rate, and to the borrowing plans of other euro nations that may do the same.

“The risk is that others may follow that example,” Christian Schulz, deputy chief European economist at Citi, told CNBC, citing the UK’s recent bond market meltdown after unfunded tax cuts by the government. Schulz explained that Germany could “afford” any debt financing thanks to its low debt-to-GDP ratio and lower external funding needs, but the package could open the door for less fiscally prudent countries to want to borrow large amounts and issue new debt. That could potentially lead to trouble like that seen in Britain.

Citi analysts forecast that German debt financing could force tighter ECB policy, which could then also send yields surging in the euro area. “The risk is that this same dynamic [as seen in Britain] evolves on the continent as well now,”Schulz warned. Meanwhile, data by Saxo Bank show that an ECB stress indicator for the Eurozone’s financial system – which looks at tensions in bond, equity and money markets – has risen from below 0.1 at the start of the year to almost 0.5 so far. During the Eurozone debt crisis in 2009-2010, the index exceeded 0.6.


German producer prices. Past 2 years: up 60%. Past 40 years before that: up 60%.

Read more …

“His staff must be marinated in evidence of the RussiaGate misdeeds — reams of which have been independently documented in the public record..”

November Surprise? (Jim Kunstler)

Adults understand that politics is a crooked business, but through the whole of US history until now filters existed in the public arena that allowed for enough sorting out of truth from untruth to enable the formation of a reality-based consensus — which, in turn, allowed daily life to operate coherently. The Party of Chaos has thrown the kill-switch on that crucial function by corrupting the news business and subverting the new social media. The result is a public culture of pervasive and immersive lying, and a stupendous institutional failure of the courts to correct any of that behavior. Case-in-point: the John Durham Special Counsel Investigation on the origin of the RussiaGate fraud. It now apparently terminates in the prosecution of the tiniest minnow (Igor Danchenko) in that vast inland sea of corruption.

Some of the figures who carried out the perfidious seditions of RussiaGate are still employed in the Department of Justice and the FBI, and to this day are active in the continued cover-up of the crimes committed to overthrow President Trump, notably: Deputy Attorney General Lisa Monaco, Associate Attorney General Vanita Gupta, DOJ Inspector General Michael Horowitz, FBI Director Christopher Wray, and others. Mr. Durham is supposedly among the highest officers of the federal courts charged with enforcing a very particular region of criminality.

His staff must be marinated in evidence of the RussiaGate misdeeds — reams of which have been independently documented in the public record, ranging from (just for example) the nefarious activities of figures like Nellie Ohr, wife of DOJ higher-up Bruce Ohr, working as go-between with Christopher Steele and the FBI, to the spectacular failures of Judge James Boasberg and his FISA court, not to mention the well-known machinations of Peter Strzok, Lisa Page, Andrew McCabe, Rod Rosenstein, Dana Boente, James Baker, Andrew Weissmann, Jeannie Rhee, Aaron Zebley, Brandon Van Grack, Robert Mueller, and other top officials who worked sedulously against the public interest. All these remain apparently off-the-hook for their sketchy activities.

Read more …

“Peskov told the Post that disagreement between Putin and his aides is “part of the usual working process.”

Washington Post Lying About Kremlin ‘Turmoil’ – Moscow (RT)

Kremlin spokesman Dmitry Peskov said on Friday that a Washington Post report alleging “turmoil” and confrontation in Russian President Vladimir Putin’s inner circle is “absolutely not true.” The report in question was attributed to anonymous US spies. “A member of Vladimir Putin’s inner circle has voiced disagreement directly to the Russian president” over the conflict in Ukraine, the report stated, alleging that “the criticism marks the clearest indication yet of turmoil within Russia’s leadership.” No source was given for this report, which was attributed to “information obtained by US intelligence.” Peskov told the Post that disagreement between Putin and his aides is “part of the usual working process.”

“There are working arguments: about the economy, about the conduct of the military operation. There are arguments about the education system. This is part of the normal working process, and it is not a sign of any split,” he said, adding that the information supposedly obtained by American intelligence is “absolutely not true.” American officials have previously boasted about waging an “info war”against Russia by leaking false intelligence reports to the media, NBC News reported in April. Intelligence officials, for example, admitted to fabricating a warning that Russia was preparing to use chemical weapons in Ukraine in March, leaking the story to the Washington Post despite it being based on “low confidence” intelligence.

A report claiming that Putin was “being misled by his own advisers” was also reportedly made up or exaggerated by US spies. “There’s no way you can prove or disprove that stuff,” a retired intelligence operative told NBC. The Post’s latest report was also received with doubt by the US’ European allies. According to the newspaper, “senior security officials in Europe said they were not aware that anyone had dared to challenge Putin directly over the course of events in Ukraine,” and said that they hadn’t seen the supposed US intelligence report that the article was based on.

Read more …

Terrorists.

When Anti-Government Speech Becomes Sedition (Whitehead)

Anti-government speech has become a four-letter word. In more and more cases, the government is declaring war on what should be protected political speech whenever it challenges the government’s power, reveals the government’s corruption, exposes the government’s lies, and encourages the citizenry to push back against the government’s many injustices. Indeed, there is a long and growing list of the kinds of speech that the government considers dangerous enough to red flag and subject to censorship, surveillance, investigation and prosecution: hate speech, conspiratorial speech, treasonous speech, threatening speech, inflammatory speech, radical speech, anti-government speech, extremist speech, etc.

Things are about to get even dicier for those who believe in fully exercising their right to political expression. Indeed, the government’s seditious conspiracy charges against Stewart Rhodes, the founder of Oath Keepers, and several of his associates for their alleged involvement in the January 6 Capitol riots puts the entire concept of anti-government political expression on trial. [..] In recent years, the government has used the phrase “domestic terrorist” interchangeably with “anti-government,” “extremist” and “terrorist” to describe anyone who might fall somewhere on a very broad spectrum of viewpoints that could be considered “dangerous.” The ramifications are so far-reaching as to render almost every American with an opinion about the government or who knows someone with an opinion about the government an extremist in word, deed, thought or by association.

You see, the government doesn’t care if you or someone you know has a legitimate grievance. It doesn’t care if your criticisms are well-founded. And it certainly doesn’t care if you have a First Amendment right to speak truth to power. What the government cares about is whether what you’re thinking or speaking or sharing or consuming as information has the potential to challenge its stranglehold on power. Why else would the FBI, CIA, NSA and other government agencies be investing in corporate surveillance technologies that can mine constitutionally protected speech on social media platforms such as Facebook, Twitter and Instagram? Why else would the Biden Administration be likening those who share “false or misleading narratives and conspiracy theories, and other forms of mis- dis- and mal-information” to terrorists?

Read more …

3 weeks after the New England Journal of medicine said the vaccines destroy your immune system, the stupid circus just goes on.

CDC: Record Number Of Children Hospitalized With Weakened Immune Systems (ZH)

Official data suggests that more children and young adults than ever have been hospitalized with colds and respiratory issues, according to the Daily Mail, which notes that “experts have repeatedly warned lockdowns and measures used to contain Covid like face masks also suppressed the spread of germs which are crucial for building a strong immune system in children.” According to a retrospective report by the Centers for Disease Control (CDC), levels of common cold viruses hit their highest level among non-adults in August 2021 – when levels had been much lower in previous years during the same month. According to the data which sampled nearly 700 children, nearly 55% tested positive for RSV in August 2021. Of that, 450 were moved to emergency departments where nearly 35% had RSV – which is comparable to the winter months when over 30% of patients regularly have the virus, according to the report.


“The CDC samples random pediatric hospitals across the US and makes national estimates to gauge how prevalent viruses are. There were nearly 700 children in hospital sick with a respiratory virus across the seven wards studied in August last year, of which just over half had tested positive for respiratory syncytial virus (RSV) – which is normally benign. This was the highest levels ever recorded in summer, and came off the back of a year and a half of brutal pandemic restrictions forcing many to stay indoors. The record all-time high is in December, when 60 per cent of children on wards with respiratory illnesses were infected with RSV.” -Daily Mail

Read more …

 

 

 

 

 

Dance

 

 

 

 

Watters

 

 

Anthony Bourdain RIP

 

 

 

 

 

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

 

 

 

 

 

Mar 032018
 
 March 3, 2018  Posted by at 11:11 am Finance Tagged with: , , , , , , , , , , , ,  14 Responses »


Vincent van Gogh Lilac Bush 1889

 

Juncker Threatens Tariffs On Harley-Davidson, Bourbon And Levi’s (G.)
Fed’s QE Unwind Marches Forward Relentlessly (WS)
S&P 500 Companies To Buy Back $800 Billion Of Their Own Shares This Year (MW)
End Times at the OD Corral (Jim Kunstler)
Theresa May Unveils Fragile Truce In Third Brexit Offering (G.)
Eliminate Fannie Mae and Freddie Mac (USNews)
Low-Level Courts Turned Into Dickensian “Debt Collection Mills” (ICept)
The Devil Is in the Details of Citi’s Sordid History (Martens)
The Future Of Economic Convergence (WEF)
Elon Musk to Open Tesla R&D Plant in Greece (G.)
EU’s Wieser: Six Months Of Varoufakis Cost Greece €200 Billion (K.)
‘This Is All Stolen Land’: Canadian Offers To Share His With First Nations (G.)

 

 

I got this one: Translation: Jean-Claude Juncker finally gets his revenge on the 1960s (probably couldn’t get laid back in the day).

Also note: just about every headline and article says Trump wrote: “..trade wars are good, and easy to win..” He did not, or only after explaining conditions for that to be true: “..When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with ..” That makes a big difference. And therefore must be included.

Juncker Threatens Tariffs On Harley-Davidson, Bourbon And Levi’s (G.)

The IMF has warned that Donald Trump’s plan to impose stiff new US tariffs on foreign imports of steel and aluminum would cause international damage – and also harm America’s own economy “The import restrictions announced by the US President (Donald Trump) are likely to cause damage not only outside the US, but also to the US economy itself, including to its manufacturing and construction sectors, which are major users of aluminum and steel,” the IMF said on Friday. The terse statement from the global body came as world leaders threatened retaliation against any fresh tariffs and the US president breezily asserted that “trade wars are good”.

In a morning tweet Trump wrote: “When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!” The European Union, Germany, Canada and other countries have all threatened retaliation against plans to impose tariffs of 25% on steel and 10% on aluminum. The Canadian prime minister, Justin Trudeau, said US tariffs on steel and aluminum would be “absolutely unacceptable” and the European commission president, Jean-Claude Juncker, warned there would be consequences for the US.

“If the Americans impose tariffs on steel and aluminum, then we must treat American products the same way,” Juncker told German television stations. “We must show that we can also take measures. This cannot be a unilateral transatlantic action by the Americans,” he said. “I’m not saying we have to shoot back, but we must take action. “We will put tariffs on Harley-Davidson, on bourbon and on blue jeans – Levi’s,” he added.

Read more …

The consensus is more QE when this inevitably blows up. But maybe the Fed does see that coming, and has different plans.

Fed’s QE Unwind Marches Forward Relentlessly (WS)

The fifth month of the QE-Unwind came to a completion with the release this afternoon of the Fed’s balance sheet for the week ending February 28. The QE-Unwind is progressing like clockwork. Even during the sell-off in early February, the QE-Unwind never missed a beat. During QE, the Fed acquired Treasury securities and mortgage-backed securities (MBS) guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. During the QE-Unwind, the Fed is shedding those securities. According to its plan, announced last September, the Fed would reduce its holdings of Treasuries and MBS by no more than: • $10 billion a month in Q3 2017 • $20 billion a month in Q1 2018 • $30 billion a month in Q2 2018 • $40 billion a month in Q3 2018 • $50 billion a month in Q4 2018, and continue at this pace.

This would shrink the balance of Treasuries and MBS by up to $420 billion in 2018, by up to an additional $600 billion in 2019 and every year going forward until the Fed decides that the balance sheet has been “normalized” enough — or until something big breaks. For February, the plan called for shedding up to $20 billion in securities: $12 billion in Treasuries and $8 billion in MBS. On its January 31 balance sheet, the Fed had $2,436 billion of Treasuries; on today’s balance sheet, $2,424 billion: a $12 billion drop for February. On target! In total, since the beginning of the QE Unwind, the balance of Treasuries has dropped by $42 billion, to hit the lowest level since August 6, 2014:

[..] to determine if the QE Unwind is taking place with MBS, we’re looking for lower highs and lower lows on a very jagged line. Also today’s movements reflect MBS that rolled off two to three months ago, so November and December, when about $4 billion in MBS were supposed to roll off per month. The chart below shows that jagged line. Note the lower highs and lower lows over the past few months. Given the delay of two to three months, the first roll-offs would have shown up in early December at the earliest. At the low in early November, the Fed held $1,770.1 billion in MBS. On today’s balance sheet, also the low point in the chart, the Fed shows $1,759.9 billion. From low to low, the balance dropped by $10.2 billion, reflecting trades in November and December:

And the overall balance sheet? Total assets on the Fed’s balance sheet dropped from $4,460 billion at the outset of the QE Unwind in early October to $4,393 billion on today’s balance sheet, the lowest since July 9, 2014. A $67-billion drop:

Read more …

“The list includes Dow components Boeing, Coca-Cola, Procter & Gamble, Johnson & Johnson, Citigroup, American Express, Goldman Sachs, Mircrosoft, Apple, Cisco and Intel.”

S&P 500 Companies To Buy Back $800 Billion Of Their Own Shares This Year (MW)

S&P 500 companies will buy back a record $800 billion of their own shares in 2018, funded by savings on tax, strong earnings and the repatriation of cash held overseas, J.P. Morgan said Friday. That will far exceed the $530 billion in share buybacks that was recorded in 2017, analysts led by Dubravko Lakos-Bujas wrote in a note. Companies have already announced $151 billion of buybacks in the year to date. “There is room for further upside to our buyback estimates if companies increase gross payout ratios to levels similar to late last cycle when companies returned >100% of profits to shareholders (vs. 83% now),” said the note. “Corporates tend to accelerate buyback programs during market selloffs.”

The stock market has experienced two bouts of steep declines so far this year, the first in early February, when the Dow Jones Industrial Average fell 1,175 points in a single session to mark its biggest ever one-day point drop, driven by fears about interest rate hikes. There were $113.4 billion of buyback announcements in February, a three-year high, according to Trim Tabs Investment Research. The second selloff was ignited on Thursday, after President Donald Trump said he is planning to impose tariffs on imports of steel and aluminum, triggering a more than 500 point drop in the Dow at its worst level, on fears the move would spark a trade war. The Dow was down another 300 points in early trade Friday.

Read more …

“Enjoy the last few weeks of relative normality.”

End Times at the OD Corral (Jim Kunstler)

Surely, the Deplorables of Flyover Land will not like the dumping of their Golden champion one bit. I’d stay away from post offices and other parcels of federal property for a while. If a bunch decides to march on the nation’s capital, it will be a messier affair than anything the hippies pulled off back in the day, perhaps the first battle of Civil War 2. The financial markets wobbled and puked on Wednesday and Thursday of this week, finally mirroring the tremendous stresses in our politics. They’ve been every bit as jacked on unreality as the two major parties for years now. The markets, after all, are not the economy itself, just indexes of the supposed values of things, stocks, bonds, gold, soybeans, etc., and the Federal Reserve has been jamming hallucinogens down their craw since the last little seizure in 2008.

The markets don’t seem to like the new chairman of the Fed, a cipher named Jay Powell. In his first big public performance since stepping into Janet Yellen’s tiny shoes this week, Powell managed to do a complete 180 in 24 hours on whether his outfit will stick to four rate hikes this year… or maybe just ride to the rescue of the floundering markets with their old tricks of lowering interest rates and “printing” shitloads of new “money” to get those animal spirits going again in the S & P. Absolutely nothing Powell’s Fed might try will work. In fact they will only make the cratering indexes fall deeper and harder, along with the value of the US dollar. Interest rates can’t go any higher, anyway, without blowing up half the paper obligations on earth.

Businesses will be terrified to transact. You can’t do much with a crippled financial system. The authorities and the news media will call it a “recession” but a sore-beset public will know it is the start of something a whole lot worse. As a nice side-dish to this banquet of consequences, the Democratic party will be deprived of its only reason to live the past two years: to shove Donald Trump off-stage. And the Republicans will be blamed twice over: once, for not coming to Trump’s defense, and again for getting behind him in the first place. Enjoy the last few weeks of relative normality.

Read more …

She’s never sounded more hollow. Theresa May is a certified masochist.

Theresa May Unveils Fragile Truce In Third Brexit Offering (G.)

If Theresa May’s first two speeches unfurled the promise of a “red, white and blue” Brexit, a cold grey day in March will be remembered as the moment a more faded flag was fluttered. As the nation took shelter from the beast from the east, this was intended to be May’s “reality bites” speech. Ten times she used the word “recognise” to underline she no longer believed Britain could have it all. “We recognise that we cannot have exactly the same arrangements with the EU as we do now,” she said. “We recognise this would constrain our ability to lower regulatory standards. We need to face up to facts. Our access to each other’s markets will be less”.

Little wonder that by the time it came for questions, and a German newspaper asked: “Is it all worth it?” The prime minister had to pause awkwardly before replying: “We are not changing our minds.” Much attention will focus on the remaining chasm between Downing Street’s hopes and the increasingly intransigent position adopted in Brussels. There was little to explain how they might solve the current crisis over Northern Ireland in the three weeks allotted. It would be churlish though not to acknowledge creeping realism from a politician whose heart has never really seemed in it. The weary call for “pragmatic common sense” was directed at both her own party and Europe.

Read more …

It’s useless to compare GSEs to the private sector. They exist to make ensure government control over the housing bubble.

Eliminate Fannie Mae and Freddie Mac (USNews)

Fannie Mae and Freddie Mac’s recent request for a bailout from the U.S. Treasury (read American taxpayers) has brought back into the public’s eye the unresolved legal status of these two government sponsored enterprises. In this debate, the assumption is that the GSEs, or some replacement entities benefiting from a government guarantee, are necessary for an effective housing finance market. The GSEs, however, do very little that cannot be done – and is not already done – by the private sector. In addition, these institutions pose a significant financial risk to U.S. taxpayers. Weighing this cost against the minimal benefits makes the case that the GSEs should be eliminated.

Without the GSEs, the mortgage market would not look radically different than it does today. Proponents argue that the GSEs lower mortgage rates, ensure the availability of the standard 30-year fixed rate mortgage, support home ownership and lend to people with lower incomes or weaker credit profiles, all of which the private sector presumably would not do. Not true on all fronts. First, the GSEs do not offer lower mortgage rates for consumers despite a government guarantee that allows them to raise capital at a lower cost than the private sector. In the past, the GSEs were able to charge lower mortgage rates by taking risks for which they were not compensated. The result was a massive build-up of housing risk in the run-up to the financial crisis of 2007-08.

Since 2009, the GSEs have been required to recognize risk in their pricing of mortgages, which has driven up their mortgage rates relative to the private sector. As a consequence, since 2014, new research undertaken with my colleague Steve Oliner shows that mortgage rates for private portfolio whole loans have been about one-quarter percentage point below GSE rates – after controlling for risk characteristics. And contrary to Treasury Secretary Steven Mnuchin’s recent statement, the private market could ensure the availability of the 30-year fixed-rate mortgages on its own. Data from CoreLogic show that 76% of private portfolio mortgages originated in 2017 were 30-year mortgages, not much below the GSE’s 85% share.

Read more …

Unstoppable.

Low-Level Courts Turned Into Dickensian “Debt Collection Mills” (ICept)

Federal law outlawed debt prisons in 1833, but lenders, landlords and even gyms and other businesses have found a way to resurrect the Dickensian practice. With the aid of private collection agencies, they file millions of lawsuits in state and local courts each year, winning 95 percent of the time. If a defendant fails to appear at post-judgement hearings known as “debtors’ examinations,” collectors can seek a warrant for contempt of court — even if the debtor didn’t realize they were being sued. [..] “A Pound of Flesh: the Criminalization of Private Debt,” the ACLU report, sheds light for the first time on the frequency of modern-day debt imprisonment, estimating that courts are issuing tens of thousands of arrest warrants each year for debtors owing as little as $30.

Forty-four states permit judges to issue these warrants, often known as “body attachments,” in civil cases. “This has been a largely invisible problem, because the people it’s happening to typically don’t have lawyers and aren’t speaking out,” says Jennifer Turner, a human rights researcher at ACLU. “Many low-level courts have essentially become debt-collection mills.” One in three Americans has a debt that’s been turned over to a private collection agency, and the ACLU found cases of warrants being issued over almost every kind of consumer debt—payday and auto loans, utility bills, even daycare fees. Many cases begin with an emergency expense that someone is unable to pay, sending them into a spiral of debt and imprisonment.

The use of cash bail often compounds the problem; debtors languish in jail for up to two weeks, according to the report. In some jurisdictions, judges routinely set bail at the exact amount of the debt owed, then surrender it to the collector once paid. In other cases documented by the ACLU, people with outstanding medical debt were too ill to go to court, as in the case of an Indiana mother of three who had been living with family in Florida while she recovered from thyroid cancer. Unbeknown to her, a small claims court had issued three warrants in a suit over her unpaid medical bills, and she was arrested when she returned home.

Read more …

In case anyone starts telling you about Kushner and Citi.

The Devil Is in the Details of Citi’s Sordid History (Martens)

Wall Street On Parade has extensively reported in the past on the dubious dealings of Citigroup in Washington. Citigroup is the bank that pressured the Bill Clinton administration into repealing the depression-era Glass-Steagall Act in 1999. That act had prevented Wall Street’s speculating investment banks and brokerage firms from owning commercial banks that take in FDIC insured deposits in order to prevent another 1929-1932 style Wall Street crash. Just nine years after the repeal of Glass-Steagall, Wall Street experienced another epic crash, with Citigroup playing a major role in the contagion. Citigroup received the largest taxpayer bailout in U.S. history, taking in $45 billion in equity from the U.S. Treasury;

A government guarantee on $300 billion of Citigroup’s dubious assets; the Federal Deposit Insurance Corporation (FDIC) guaranteed $5.75 billion of its senior unsecured debt and $26 billion of its commercial paper and interbank deposits; and the Federal Reserve secretly funneled $2.5 trillion in almost zero-interest loans to units of Citigroup between 2007 and 2010. Citigroup was created by the merger of Citicorp (parent of Citibank) and Travelers Group (which owned investment bank Salomon Brothers and brokerage firm Smith Barney). It would not have been allowed to exist but for the largess of the Clinton administration. And the Clintons needed a lot of financial help when they exited the White House.

In a June 9, 2014 interview with ABC’s Diane Sawyer, Hillary Clinton said this: “We came out of the White House not only dead broke, but in debt. We had no money when we got there, and we struggled to, you know, piece together the resources for mortgages, for houses, for Chelsea’s education. You know, it was not easy.” One institution that had big confidence in the Clintons’ future earning power was Citigroup. “According to PolitiFact, Citigroup provided a $1.995 million mortgage to allow the Clintons to buy their Washington, D.C. residence in 2000. That liability does not pop up on the Clinton disclosure documents until 2011, showing a 30-year mortgage at 5.375% ranging in face amount from $1 million to $5 million from CitiMortgage. The disclosure says the mortgage was taken out in 2001.

“Citigroup also paid Bill Clinton hundreds of thousands of dollars in speaking fees after he left the White House. It committed $5.5 million to the Clinton Global Initiative — a program which brings global leaders together annually to make action commitments. Citigroup employees have also been major campaign funders to Hillary Clinton’s political campaigns.”

Read more …

Oh, no!! Turns out developing markets have borrowed all their growth as well…

The Future Of Economic Convergence (WEF)

The world is now facing what observers are calling a “synchronized” growth upswing. What does this mean for the economic “convergence” of developed and developing countries, a topic that lost salience after the Great Recession began a decade ago? In the 1990s, developing economies, taken as a whole, began to grow faster than their advanced counterparts (in per capita terms), inspiring optimism that the two groups’ output and income would converge. From 1990 to 2007, the developing economies’ average annual per capita growth was 2.5 percentage points higher than in the advanced economies. In 2000-2007, the gap widened, to 3.5 percentage points.

Though not all countries made progress – many small economies did not do well – on an aggregate basis, the structure of the world economy was being transformed. Asian countries were catching up at a particularly rapid clip, driven by the large, dynamic economies of India and, even more so, China (which experienced nearly three decades of double-digit GDP growth). After the global financial crisis began in 2007, however, the dynamic changed. At first, it seemed that convergence was accelerating. With advanced-economy growth having ground to a halt, developing countries’ lead in per capita growth increased to four percentage points.

By 2013-2016, however, growth slowed in many emerging economies – particularly in Latin America, with Brazil experiencing negative growth in 2015 and 2016 – while growth in the United States picked up. Are we, as some observers have claimed, witnessing the end of convergence? The answer will depend on developing economies’ ability to find and tap new, more advanced sources of growth. In the past, the key engine of convergence was manufacturing. Developing countries that had finally acquired the needed skills and institutions applied advanced-country technologies locally, benefiting from plentiful, low-cost labor.

But, as Dani Rodrik has argued, that source of easy copycat catch-up has mostly been exhausted. The low-hanging fruit in manufacturing has already been picked. Technological catch-up is more difficult in the services sector, which now accounts for a larger share of total value-added. Moreover, today’s cutting-edge technologies – such as robotics, artificial intelligence (AI), and bioengineering – are more complex than industrial machinery, and may be more difficult to copy. And, because intelligent machines can increasingly fill low-wage jobs, developing countries’ cost advantage may have been diminished significantly.

Read more …

Musk makes his latest victim. There’s one question that must always be asked in these cases: How much in subsidies does he get for this project? Articles that do not ask this should not be published, because they’re mere propaganda.

Elon Musk to Open Tesla R&D Plant in Greece (G.)

Elon Musk may have plans to colonise Mars but back on planet Earth he is extending his reach to Athens, by opening an engineering facility called Tesla Greece. Musk’s electric car business is an unsung success story for the Greek diaspora, with three of Tesla’s top designers boasting degrees from the National Technical University of Athens. Tesla’s plans for the country have such “game-changing potential” that the head of the Hellenic Entrepreneurs’ Association, Vasilis Apostolopoulos, has pledged to hand over his own industrial plant for free as a testing ground for new products.

Addressing delegates at the annual Delphi economic forum, Apostolopoulos said: “I have personally emailed Musk to welcome Tesla Greece … and to say that for the next 10 years I will give, at zero cost to his company, my group’s own industrial plant outside Corinth so that Greece can be on the frontline of global innovation.” Describing the move as a “vote of confidence” in the debt-stricken country, Apostolopoulos, who is chief executive of the Athens Medical Group, a leading private healthcare provider, said he was also prepared to offer full medical coverage for a year to all of Tesla Greece’s staff members and international staff visiting the country on company business.

“It is the least we can do to thank and welcome Mr Musk’s vote of confidence in Hellenic business, research and technology,” he told the Guardian. Outside the UK, the Netherlands and Germany, the electric car manufacturer has no presence in Europe. Its Greek office is expected to attract at least 50 engineers to run a research and development centre out of the state-run Demokritos Centre for Scientific Research. The centre is expected to act as a base for southeast Europe. “Greece has a strong electric motor engineering talent, and technical universities offering tailored programmes and specialised skills for electric motor technology,” a spokesperson told Electrek, a US news website.

It is understood that Tesla’s three Greek designers – principal motor designer Konstantinos Laskaris; motor design engineer Konstantinos Bourchas; and staff motor design engineer Vasilis Papanikolaou – are preparing to move back to Athens under the company’s plans. Demokritos has welcomed the news. “We are very happy to receive all the talented engineers who are returning to work beside us,” it said in a statement.

Read more …

In his book ‘Adults in the Room’, Yanis had nothing good about ‘the most powerful man in the EU’. Now, Wieser comes with an unverifiable and fully nonsensical story, that he knows even many Greeks will swallow hook line and sinker.

EU’s Wieser: Six Months Of Varoufakis Cost Greece €200 Billion (K.)

The first six months of the leftist-led SYRIZA government cost Greece around €200 billion, former Euro Working Group chief Thomas Wieser told the Delphi Economic Forum on Friday, describing that estimate as “safe” and “conservative.” In a discussion being moderated by the executive editor of Kathimerini, Alexis Papachelas, Wieser noted that the SYRIZA-led government was basically provoking Grexit from its rise in late January to July of that year. Wieser noted that in 2010, the German government decided that the participation of the IMF in the rescue program for Greece was necessary, noting that the Eurozone lacked the technical knowhow for that sort of program. He noted that former US President Barack Obama took an active role during Greece’s crisis, adding that then Treasury Secretary Jack Lew would call the Eurogroup chairman at the time, Jeroen Dijsselbloem up to five times a week.

Read more …

“..Somehow it turns out I’m the first white person to think about giving the land back since Marlon Brando..”

‘This Is All Stolen Land’: Canadian Offers To Share His With First Nations (G.)

Joel Holmberg had been batting the idea around for years. But the final decision came last month, as he scrolled through the online vitriol that erupted after a white farmer was acquitted of killing a young Cree man in the Canadian province of Saskatchewan. Holmberg turned to social media, but instead of joining in the often-vicious debate surrounding that case, he offered to share his family’s five-acre property in northern Alberta with a First Nations family. There would be no bills, no rent, he explained. Instead the family could join him, his wife and two children in living off the land; hunting, fishing and growing food.

“I wanted to offer some sort of hope,” said Holmberg. “It was really disgusting to see the way the racist people were speaking. I wanted to let them know that it’s not everyone in Canada that feels that way.” The invitation to share his acreage near Barrhead, about 100km north-west of Edmonton, seemed like a fair one. “We all know in our heart the truth, that this is all stolen land,” said the 45-year-old. “They’re our hosts and we’re their guests and they’ve been criminally abused for far too long and it has to stop.” Holmberg said his appreciation for First Nations culture began as a child growing up in British Columbia, when members of the Sinixt First Nation began bringing him along as they hunted and fished.

“I had the opportunity to do sweats with them and learn about their culture from them and learn about the real history of Canada,” he said. He continued to delve into Canada’s rich tapestry of indigenous cultures as he moved around the country, from the Northwest Territories to Manitoba and Saskatchewan. “They’re the kindest people I’ve ever met. They’ve been there for me in the worst times in my life when I needed help the most,” he said. “It is very clear to my family and I, that it is us that will be blessed by this thing happening most of all.”

Read more …

Apr 132017
 
 April 13, 2017  Posted by at 8:44 am Finance Tagged with: , , , , , , , , , ,  2 Responses »


Eruption of Mount Vesuvius 1944

 

Former GM Vice Chair: I Think Tesla Is Doomed (CNBC)
It’s Time for Bank Hardball (Tan)
America In the Age of Hypocrisy, Hubris, and Greed (Frank)
Trump Flips On Five Core Campaign Promises In Under 24 Hours (ZH)
Trump Lays Groundwork for Federal Government Reorganization (BBG)
The Politics of the IMF (WF)
If An Electorate Falls In The Forest, Is Their Voice Heard? (DDMB)
NY Fed Boss May Have Blabbed During Blackout (Crudele)
The Potential For The Disastrous Rise Of Misplaced Power Persists (Assange)
No Greek Pensions Expected To Avoid Cuts (K.)
IMF Chief Lagarde Says ‘Halfway’ There On Greek Talks (R.)
Stop Pretending on Greek Debt (BBG)
Detention Of Child Refugees Should Be Last Resort, Brussels Says (G.)
Crucified Man Had Prior Run-In With Authorities (Petri)

 

 

More on the Ponzi.

Former GM Vice Chair: I Think Tesla Is Doomed (CNBC)

GM’s former Vice Chairman Bob Lutz dropped a whole lot of reality on some unsuspecting Tesla cheerleaders on CNBC this morning. “I am a well known Tesla skeptic. Somehow it’s levitating and I think it’s Elon Musk is the greatest salesman in the world. He paints this vision of an unlimited future, aided and abetted by some analysts. It’s like Elon Musk has been beamed down from another planet to show us mortals how to run a company.” “The fact is it’s a constant cash drain. They’re highly dependent on federal government and state incentives for money which constantly flows in. They have capital raises all the time.” “Even the high-end cars that they build now cost more to build than they’re able to sell them for.” “Mercedes, BWM, Volkswagen, GM, Audi and Porsche are all coming out with 300-mile [range] electric luxury sedans…I think they’re doomed.”

“Their upside on pricing is limited because everybody else sells electric vehicles at a loss to get the credits to be able to sell the sport utility vehicles and the pickup trucks. So that puts a ceiling on your possible pricing.” “And if he can’t make money on the high-end Model S and Model X’s which sell up to $100,000, how in the world is he going to make money on a $35,000 small car? Because I have news for you, 42 years of experience, the cost of a car doesn’t come down proportional to it’s price.” “If you have a situation where the cost of producing a car, labor and materials, is higher than your sell price, your business model is flawed. And it’s doomed and it’s going to fail.”

“The battery plant, in my estimation, is a joke. There are no cost savings from making a lithium ion plant bigger than other people lithium ion plants, because making lithium ion cells is a fully automated process anyway. So, whether you got full automative in a small building or 10x full automation in a big building, you’re not saving any money.”

Read more …

Break up the banks!

It’s Time for Bank Hardball (Tan)

Wall Street’s top executives should be pressed for substantive answers to harder-hitting questions about long-term performance. That’s a notion being trumpeted by well-known bank analyst Mike Mayo, who has never been one to shy away from criticizing the companies he covers. And boy, does he have a point. On Wednesday, Mayo published some questions he plans to ask Citigroup’s Chairman Michael O’Neill and CEO Michael Corbat at its annual general meeting later this month. They haven’t truly been held accountable for the lender’s mediocre returns, which includes its inability to meet a targeted return on tangible common equity of 10% by 2015, a goal that has since been pushed to 2019. Mayo’s solutions include another round of restructuring, or, if something is structurally wrong, perhaps the bank should break up.

Another valid question is why Citi feels the need measure its financial and share price performance against European lenders Barclays, Deutsche Bank and HSBC? (The question is somewhat rhetorical: It’s so the bank doesn’t place dead last, which it would on most metrics if compared with U.S. rivals). And oddly enough, it removes its weaker European counterparts for compensation comparison purposes. The same can’t be said for Bank of America, which in addition to reviewing its closest five U.S. competitors, evaluates the performance at worse-off European banks such as Credit Suisse and Royal Bank of Scotland as well as similarly-sized U.S.-based companies such as Coca-Cola and General Electric. This seems unnecessary and almost like an easy way to justify Chairman and CEO Brian Moynihan’s potentially outsized $20 million in annual pay.

Read more …

“For Americans who work for a living however, nothing ever seems to improve.”

America In the Age of Hypocrisy, Hubris, and Greed (Frank)

“The whole world wants to know about what the hell is happening with us. So let’s talk about it. I live in Washington now, and the people I live among have no idea how people live here in the Midwest, not the faintest idea… The last couple of years here in America have been a time of brisk prosperity according to official measurements, with unemployment down and the stock market up. For Americans who work for a living however, nothing ever seems to improve. Wages do not grow, median household income is still well below where it was in 2007. Economists have a way of measuring this, they call it the ‘labor share of the Gross National Product’ as opposed to the share taken by stockholders. The labor share of Gross National Product’ hit its lowest point since records were started in 2011, and then it stayed there right for the next couple of years.

In the fall of 2014, with the stock market hitting an all time high, a poll showed that nearly 3/4 of the American public believed that the economy was still in recession, because for them it was. There was time when average Americans could be counted upon to know correctly whether the country was going up or down, because in those days when America prospered, the American people prospered as well. These days things are different. Let’s look at it in a statistical sense. If you look at it from the middle of the 1930’s (the Depression) up until the year 1980, the lower 90% of the population of this country, what you might call the American people, that group took home 70% of the growth in the country’s income.

If you look at the same numbers from 1997 up until now, from the height of the great Dot Com bubble up to the present, you will find that this same group, the American people, pocketed none of this country’s income growth at all. Our share of these great good times was zero, folks. The upper 10% of the population, by which we mean our country’s financiers and managers and professionals, consumed the entire thing. To be a young person in America these days is to understand instinctively the downward slope that so many of us are on.”

Read more …

And gets away with it.

Trump Flips On Five Core Campaign Promises In Under 24 Hours (ZH)

Blink, and you missed Trump’s blistering, seamless transformation into a mainstream politician. In the span of just a few hours, President Trump flipped to new positions on several core policy issues, backing off on no less than five repeated campaign promises. In a WSJ interview and a subsequent press conference, Trump either shifted or completely reversed positions on a number of foreign and economic policy decisions, including the fate of the US Dollar, how to handle China and the future of the chair of the Federal Reserve.

Goodbye strong dollar and high interest rates In an announcement that rocked currency markets, Trump told the WSJ that the U.S. dollar “is getting too strong” and he would prefer the Federal Reserve keep interest rates low. “I do like a low-interest rate policy, I must be honest with you,” Mr. Trump said. “I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me. But that’s hurting—that will hurt ultimately,” he added. “Look, there’s some very good things about a strong dollar, but usually speaking the best thing about it is that it sounds good.”

Labeling China a currency manipulator Trump also told the Wall Street Journal that China is not artificially deflating the value of its currency, a big change after he repeatedly pledged during his campaign to label the country a currency manipulator. “They’re not currency manipulators,” the president said, adding that China hasn’t been manipulating its currency for months, and that he feared derailing U.S.-China talks to crack down on North Korea. Trump routinely criticized President Obama for not labeling China a currency manipulator, and promised during the campaign to do so on day one of his administration.

Yellen’s future Trump also told the Journal he’d consider re-nominating Yellen to chair the Fed’s board of governors, after attacking her during his campaign.” I like her. I respect her,” Trump said, “It’s very early.” Trump called Yellen “obviously political” in September and accused her of keeping interest rates low to boost the stock market and make Obama look good. “As soon as [rates] go up, your stock market is going to go way down, most likely,” Trump said. “Or possibly.”

Export-Import Bank Trump also voiced support behind the Export-Import Bank, which helps subsidize some U.S. exports, after opposing it during the campaign. “It turns out that, first of all, lots of small companies are really helped, the vendor companies,” Trump told the Journal. “Instinctively, you would say, ‘Isn’t that a ridiculous thing,’ but actually, it’s a very good thing. And it actually makes money, it could make a lot of money.” Trump’s support will anger conservative opponents of the bank, who say it enables crony capitalism.

NATO Finally, Trump said NATO is “no longer obsolete” during a Wednesday press conference with NATO Secretary General Jens Stoltenberg, backtracking on his past criticism of the alliance. During the campaign, he frequently called the organization “obsolete,” saying did little to crack down on terrorism and that its other members don’t pay their “fair share.” “I said it was obsolete. It is no longer obsolete,” the president said Wednesday. Trump has gradually become more supportive of NATO after it ramped up efforts to increase U.S. and European intelligence sharing regarding terrorism.

Read more …

There could be some advantages to a clean-up, but guaranteed they’re going to screw this up by cutting at the wrong places.

Trump Lays Groundwork for Federal Government Reorganization (BBG)

President Donald Trump is issuing a presidential memorandum that will call for a rethinking of the entire structure of the federal government, a move that could eventually lead to a downsizing of the overall workforce and changes to the basic functions and responsibilities of many agencies. The order, which will go into effect Thursday, also will lift a blanket federal hiring freeze that has been in place since Trump’s first day in office almost three months ago and replace it with hiring targets in line with the spending priorities the administration laid out in March, said Mick Mulvaney, director of the Office of Management and Budget. The move is a part of Trump’s campaign pledge to “drain the swamp” and get rid of what the administration views as inefficiencies in the federal government, Mulvaney said.

It comes as the White House also is trying to curb the size of many government agencies through a proposed budget that calls for historically deep spending cuts to everything from medical research to clean-energy programs. The push to reshape the government as well as the budget cuts are almost certain to draw opposition from Congress. “We think at the end of the day this leads to a government that is dramatically more accountable, dramatically more efficient, and dramatically more effective, following through on the very promises the president made during the campaign and that he put into place on day one,” Mulvaney said. He said the administration is starting with a “blank sheet of paper” as to how the government should operate and has set up a website to solicit ideas.

One solution may be to organize it by function, like putting all areas that deal with trade under one department, or to break up large departments into a number of smaller agencies. As an example, Mulvaney said there are 43 different workforce-training programs across at least 13 agencies – without a single point person in charge of them – that could be brought under one roof. “We’re now transitioning into the smarter, more surgical plans of running the government,” Mulvaney said in an interview on MSNBC Wednesday morning.

Read more …

Useful background. “..the US also claimed the right to remain fully informed about the financial comings and goings of every single member state, thenceforth and permanently.”

The Politics of the IMF (WF)

At the historic New Hampshire-based Bretton Woods Conference of 1944, delegates from 44 nations across the globe came together to create the International Monetary Fund (IMF) and the World Bank. The former was officially founded on 27 December 1945 with 29 member countries; financial operations commenced on 1 March 1947. From that first meeting in New Hampshire, it was established that the thrust of the IMF’s mission would be to promote greater economic cooperation within the international arena. Though today the IMF maintains its mandate has remained as such, over the years the organisation has evolved alongside a changing global landscape, becoming an extraordinarily powerful organisation as a result.

[..] .. the US played an undeniably dominant role in establishing the IMF and dictating how it would operate. A crucial factor in its make up, and in the US’ ongoing influence within the organisation, was the distribution of voting power among member states. Rather than allocating votes in accordance with the size of a member’s population – which would be the most democratic approach to take – the US instead pushed for voting power to correspond with the volume of contributions made. Unsurprisingly, those contributions made by the US, the world’s biggest economy, were far greater than those of any other member state.

By contributing $2.9bn – double the amount made by the UK, the second biggest contributor at the time – the US was guaranteed twice the number of voting rights, together with veto privileges and a blocking minority. The manoeuvre enabled the superpower to secure near-absolute control of the IMF’s activities. In order to further consolidate its dominant role, the US also claimed the right to remain fully informed about the financial comings and goings of every single member state, thenceforth and permanently.

Read more …

“The longer the voices of the desperate go unheard, as just so many silently falling trees in the forest, the more piercing their cries will be in the end.”

If An Electorate Falls In The Forest, Is Their Voice Heard? (DDMB)

It was not until the June 1883 publication of the magazine The Chautauquan that the question was put as such: “If a tree were to fall on an island where there were no human beings would there be any sound?” Rather than pause to ponder, the answer followed that, “No. Sound is the sensation excited in the ear when the air or other medium is set in motion.” A vexatious debate has ensued ever since, one that eventually stumped the great Albert Einstein who finally declared “God does not play dice.” In recognizing this, Einstein also resolved himself to the quantum physics conclusion, that there is no way to precisely predict where individual electrons can be found – unless, that is, you’re Divine.

Odds are high that the establishment, which looks to ride away with upcoming European elections, is emboldened by quantum physics. The entrenched parties appear set to retain their power holds, in some cases by the thinnest of margins. What is it the French say about la plus ca change? Is it truly the case that the more things change the more they stay the same? Is this state of stasis sustainable, you might be asking? Clearly the cushy assumption is that the voices of those whose votes will not result in change will be as good as uncast, unheard and unremarkable. Except…and this is a big ‘except’ – time is on the side of the castigated and for one simple reason – they are young.

[..] And then there is the matter of the refugee crisis, the cost of which few in the United States fully appreciate. Faced with impossible living conditions and no access to work in Jordan, Turkey and Lebanon, hundreds of thousands have opted to risk the journey to Europe. In 2015, 1.3 million asylum seekers landed in Europe, half of whom traced their origins to Syria, Afghanistan and Iraq. That number plunged in 2016 to 364,000 owing mainly to a deal between the EU and Turkey which blocks the flow of migrants to Europe. The cost, not surprisingly, is enormous. Europeans spend at least $30,000 for every refugee who lands on her shores. By some estimates, the cost would have been one-tenth that, as in $3,000 per refugee, had the journey to Europe NOT been made in the first place.

[..] At some point demographics will start to matter. The situation in France is no doubt grave, with youth unemployment at nearly 24%. But that pales in comparison to Italy where 39% of its young workers don’t have jobs to go to, day in and day out. Older voters determined to keep the establishment intact will begin to die off. In their wake will be a growing majority of voters who are increasingly disenfranchised, disaffected and despondent. If there’s one lesson Europeans can glean from their allies across the Atlantic, it’s that bullets can be dodged, but not indefinitely. As we are learning the hard way, necessary reforms are challenging to enact. Avoidance, though, will only succeed in feeding anger and despair. The longer the voices of the desperate go unheard, as just so many silently falling trees in the forest, the more piercing their cries will be in the end.

Read more …

There’s a lot of that going on. Stanley Fisher does it too.

NY Fed Boss May Have Blabbed During Blackout (Crudele)

Back in 2011, I caught William Dudley, the president of the New York Federal Reserve Bank, having meetings he wasn’t supposed to have with some of Wall Street’s top players. And nobody cared. Nobody cared despite the fact that Dudley could have easily passed along all sorts of confidential information to these people, who would have immediately known how to profit enormously from what they were being told. I am mentioning this because the head of the Richmond, Va., Fed, Jeffrey Lacker, abruptly resigned last week for doing far less bad than Dudley might have done. Lacker says he took an October 2012 phone call from an analyst at an investment advisory firm and had a conversation about something the Fed was considering — the purchase of $40 billion worth of mortgage bonds — to try to help the economy.

[..]Lacker is a pipsqueak compared with Dudley, who has a permanent position on the Fed’s policymaking Open Market Committee — and whose bank controls the trading operations for the whole Fed. I looked it up, and Lacker’s conversation with the analyst didn’t occur during the Fed’s so-called blackout period, which starts a week before its policy meetings. As I wrote back in 2011, several of Dudley’s meetings did. During these blackout periods, Fed officials are supposed to clam up — and make no public pronouncements, which I assume would cover Dudley’s informal dinners. As I wrote back in January 2011, I have no way of knowing what Dudley discussed at his blackout-period meetings. But unless he and his guests sat mute and expressionless during their meetings, there’s a good likelihood that something could be gleaned from the New York Fed president’s remarks.

Just so those investigators in the “separate” investigation don’t have to go to any trouble, I’m going to repeat here some of what I wrote back then. At one of the questionable Dudley meetings, in March 2009, the Fed’s blackout period ran from March 10 to 18. On March 11, Dudley met with Jan Hatzius, chief economist of Goldman Sachs. Dudley had once worked at Goldman, so he and Hatzius were friends. Dudley’s calendar says it was an “informal meeting” that took place from 6 p.m. to 7 p.m. at the Pound and Pence restaurant near the New York Fed. That was on Dudley’s calendar, as was the notation “PRE-FOMC BLACKOUT PERIOD,” written in bold, all caps. So his assistant was clearly trying to warn him about restrictions. Let’s hope the separate investigation that Lacker mentioned is of the New York Fed. And, if they don’t already, investigators now know where to look.

Read more …

WikiLeaks wants the same thing as the WaPo? Are we sure?

The Potential For The Disastrous Rise Of Misplaced Power Persists (Assange)

The media has a long history of speaking truth to power with purloined or leaked material — Jack Anderson’s reporting on the CIA’s enlistment of the Mafia to kill Fidel Castro; the Providence Journal-Bulletin’s release of President Richard Nixon’s stolen tax returns; the New York Times’ publication of the stolen “Pentagon Papers”; and The Post’s tenacious reporting of Watergate leaks, to name a few. I hope historians place WikiLeaks’ publications in this pantheon. Yet there are widespread calls to prosecute me. President Thomas Jefferson had a modest proposal to improve the press: “Perhaps an editor might begin a reformation in some such way as this. Divide his paper into 4 chapters, heading the 1st, ‘Truths.’ 2nd, ‘Probabilities.’ 3rd, ‘Possibilities.’ 4th, ‘Lies.’

The first chapter would be very short, as it would contain little more than authentic papers, and information.” Jefferson’s concept of publishing “truths” using “authentic papers” presaged WikiLeaks. People who don’t like the tune often blame the piano player. Large public segments are agitated by the result of the U.S. presidential election, by public dissemination of the CIA’s dangerous incompetence or by evidence of dirty tricks undertaken by senior officials in a political party. But as Jefferson foresaw, “the agitation [a free press] produces must be submitted to. It is necessary, to keep the waters pure.” Vested interests deflect from the facts that WikiLeaks publishes by demonizing its brave staff and me. We are mischaracterized as America-hating servants to hostile foreign powers.

But in fact I harbor an overwhelming admiration for both America and the idea of America. WikiLeaks’ sole interest is expressing constitutionally protected truths, which I remain convinced is the cornerstone of the United States’ remarkable liberty, success and greatness. I have given up years of my own liberty for the risks we have taken at WikiLeaks to bring truth to the public. I take some solace in this: Joseph Pulitzer, namesake of journalism’s award for excellence, was indicted in 1909 for publishing allegedly libelous information about President Theodore Roosevelt and the financier J.P. Morgan in the Panama Canal corruption scandal. It was the truth that set him free.

Read more …

Madness.

No Greek Pensions Expected To Avoid Cuts (K.)

The Labor Ministry’s main plan to save 1% of GDP from 2019 pension expenditure provides for reductions even to very low pensions if the recalculation process shows a difference from the original calculation according to the previous method, the so-called “personal difference.” The ministry is trying to avoid having to impose very big cuts – the personal difference is estimated to range up to 40% – and sources say it is hoping to cap the reductions at 20 or 25%. The final decisions will be made when the creditors’ representatives return to Athens later this month.

Read more …

Lagarde wants Greece on its knees. She keeps insisting on more pension cuts, without any regard for the effects on Greek people. That will make the economy worse, not better. And she knows it.

IMF Chief Lagarde Says ‘Halfway’ There On Greek Talks (R.)

IMF chief Christine Lagarde on Wednesday said Greece was heading in the right direction on reforms but talks on its bailout and the IMF’s potential role in it were “only halfway through.” Greece and its international lenders are negotiating reforms the country needs to carry out to maintain a sustainable growth path in the years following the end of its bailout program, which ends in mid-2018. “What I have seen in the last couple of weeks is heading in the right direction. We are only halfway through in the discussions,” Lagarde told a conference in Brussels. Last week, eurozone finance ministers agreed the “overarching elements” of reforms needed in Greece in exchange for a new loan under its 86-billion-euro program, the third since 2010.

The new loan is needed to pay debt due in July. Talks are continuing and no date is fixed yet for the return of negotiators to Athens. The Greek government believes negotiators could go back to Greece after the IMF Spring Meetings on April 21-23. “We are still elaborating under what terms we could possibly give some lending to the country. We are not there yet,” Lagarde said, adding any IMF loan to Greece would have to abide by strict conditions. She said debt restructuring will be needed to guarantee the sustainability of Greek finances. The scope of the restructuring “will be decided at the end of the program,” but “the modalities have to be decided upfront,” Lagarde said.

Read more …

They have no interest in solving Greece’s problems.

Stop Pretending on Greek Debt (BBG)

Greece and its creditors say they’ve made progress in their endless negotiations over the country’s debts – enough to avoid a default on payments worth more than €7 billion in July. That’s good, but it was the easy part. The definitive settlement that Greece and the European Union both need still isn’t in sight. For the past seven years, the IMF and euro-zone institutions have supported Athens with loans in exchange for fiscal austerity and structural economic reform. This strategy has failed to break Greece’s vicious circle of a shrinking economy and higher debt. Europe needs to bring this spiral to an end without further delay – by putting Greece’s debts on a credibly downward path. The IMF has made it clear that it will only take part in a rescue program that includes a realistic assessment of debt sustainability.

This is a welcome break from the past: Time and again, creditors have deluded themselves that Greece can run implausibly high budget surpluses for years. Germany, especially, is keen to keep the IMF involved. With luck, Berlin might be willing to adjust the creditors’ proposals accordingly. Greece has gone through nearly a decade of punishing austerity. Its unemployment rate is still stuck near 25%. Last week’s deal includes further tax and pension reforms worth 2% of GDP. If consumers and companies are to spend and invest again, they must see an end to the tunnel. Economic necessity and political feasibility point to the same conclusion: Firm fiscal restraint is essential – but not so firm as to be self-defeating.

Read more …

It shouldn’t be a last resort, it should be no resort. This is the EU trying to deflect attention away from its own deplorable failings by pointing to Hungary. Don’t fall for it.

Detention Of Child Refugees Should Be Last Resort, Brussels Says (G.)

Detention of child refugees should be “a last resort”, the European commission has said, in remarks that will be seen as a rebuke to Hungary where asylum seekers, including minors, are being held in barbed-wire fenced camps. The statement from Brussels is part of a long awaited plan to protect child refugees in Europe. About 386,300 children made an asylum claim in the EU in 2016, a six-fold increase since 2010 that has left some countries struggling to cope. The EU plan comes one day after Germany announced it was halting refugee transfers to Hungary, until Budapest stops the systematic detention of all asylum seekers.

Under the EU’s Dublin regulation, asylum seekers are to be returned to the first country they registered in. Routine detention of refugees is banned. Hungary announced last month that all asylum seekers older than 14 would be kept in converted shipping containers on the border while their claims were assessed. About 110 people were living in the camps, including four unaccompanied children, and children with their families, when the UN refugee agency assessed the camps last week. The situation for asylum seekers had worsened since the new law came into effect, the UNHCR said, as the organisation also warned of “highly disturbing reports” of police violence meted out to refugees attempting to cross the border.

[..] Hungary already risks being taken to the European court of justice for failure to take in a mandatory quota of asylum seekers, a decision imposed on Budapest in September 2015. The clock is ticking towards a deadline to disperse 160,000 asylum seekers from Greece and Italy to other EU member states (excluding the UK) by September 2017. The EU’s most senior official on migration warned that Hungary risked being taken to the European court of justice if it failed to meet its target. “From September the relocation scheme is ending. This does not mean it is going to die. It will continue,” said Dimitris Avramopoulos, the European commissioner for home affairs, . “EU countries who do not want to be part of our policy, they will be confronted with measures we can take,” he said, in a coded reference to court action that could land governments with hefty fines.

Read more …

It’s that time of year.

Crucified Man Had Prior Run-In With Authorities (Petri)

The gentleman arrested Thursday and tried before Pontius Pilate had a troubled background. Born (possibly out of wedlock?) in a stable, this jobless thirty-something of Middle Eastern origin had had previous run-ins with local authorities for disturbing the peace, and had become increasingly associated with the members of a fringe religious group. He spent the majority of his time in the company of sex workers and criminals. He had had prior run-ins with local authorities — most notably, an incident of vandalism in a community center when he wrecked the tables of several licensed money-lenders and bird-sellers.

He had used violent language, too, claiming that he could destroy a gathering place and rebuild it. At the time of his arrest, he had not held a fixed residence for years. Instead, he led an itinerant lifestyle, staying at the homes of friends and advocating the redistribution of wealth. He had come to the attention of the authorities more than once for his unauthorized distribution of food, disruptive public behavior, and participation in farcical aquatic ceremonies. Some say that his brutal punishment at the hands of the state was out of proportion to and unrelated to any of these incidents in his record. But after all, he was no angel.

Read more …

Jul 122016
 
 July 12, 2016  Posted by at 8:30 am Finance Tagged with: , , , , , , , , ,  5 Responses »


NPC L.E. White Coal Co. yards, Washington 1922

Asian Shares Rally As Wall Street Strikes New Record High (R.)
Abe Orders New Stimulus Package To Water ‘Seeds Of Growth’ (R.)
Japan Turns Again to Bernanke, as Fruits of Abenomics Wither (BBG)
Bernanke’s Black Helicopters Of Money (David Stockman)
The Trillions Spent By Central Banks Has Been A Dud: BofA (MW)
Ground Zero of China’s Slowdown Leaves Locals Looking for Exit (BBG)
HSBC Avoided US Money Laundering Charges Because Of ‘Market Risk’ Fears (BBC)
Brexit Seen Biting Profit for Years at US Banks (BBG)
Italy ‘Facing 20 Years Of Economic Woe’: IMF (BBC)
Dutch Bonds Just Did Something That We Haven’t Seen In 499 Years (BI)
Citibank To Close Key Venezuela Payment Account: Maduro (AFP)
European Commission Under Fire Over Barroso’s Goldman Sachs Job (EuO)
Oligarchs of the Treasure Islands (MWest)
Trump Wins -Even If He Loses- (Nomi Prins)

 

 

Everyone’s betting on the helicopter arriving soon.

Asian Shares Rally As Wall Street Strikes New Record High (R.)

Asian stocks rose to a 2-1/2-month peak on Tuesday, a day after Wall Street shares hit a record high thanks to a combination of upbeat U.S. data and expectations of more stimulus from global policymakers. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6% to hit its highest level since late April. Japan’s Nikkei jumped 2.5% as investors bet the country’s government may inject $100 billion in fiscal spending to boost the economy, possibly financed by the central bank’s money-printing, a policy mix that is often dubbed “helicopter money”. European shares are seen opening flat to slightly lower, with spread-betters expecting Britain’s FTSE 100 and Germany’s DAX to fall 0.1% and France’s CAC 40 to be flat.

On Wall Street, the S&P 500 index on Monday broke a new record high, its first in more than a year, extending its gain after Friday’s bumper job figures reduced worries about slowdown in employment. The benchmark closed at a record 2,137.16, overtaking the previous high of 2,130.82 hit on May 21, 2015. Globally low interest rates from central bank stimulus in both Japan and Europe are supporting risk assets. Bond yields in the U.S., Japan, Germany, France and the U.K all hit record lows last week as investors bet on more stimulus following the Brexit shock.

Read more …

Follow the strong leader no matter what he says or does. A culture fraught with danger.

Abe Orders New Stimulus Package To Water ‘Seeds Of Growth’ (R.)

Japanese Prime Minister Shinzo Abe ordered a new round of fiscal stimulus spending after a crushing election victory over the weekend as evidence mounted the corporate sector is floundering due to weak demand. Abe did not give details on the size of the package, but Japanese stocks jumped nearly 4 percent and the yen weakened over perceptions a landslide victory in upper house elections now gives him a free hand to draft economic policy. An unexpected decline in machinery orders shows the economy needs something to overcome consistently weak corporate investment. Economists worry, however, that Abe’s focus on public works spending will not tackle the structural issues around a declining population and workforce.

More public works also increases pressure on the Bank of Japan to keep interest rates low and the yen weak to make sure stimulus spending will gain traction. The government was ready to spend more than 10 trillion yen ($100 billion), ruling party sources told Reuters before the election. “We are going to make bold investment into seeds of future growth,” Abe told a news conference on Monday at the headquarters for his ruling Liberal Democratic Party (LDP). [..] Abe said he wanted to strengthen agriculture exports from rural areas and improve infrastructure, such as trains and ports, to welcome more tourists and cruise ships from overseas. “We have promised through this election campaign that we will sell the world the agricultural products and tourism resources each region is proud of,” he said.

Read more …

Abe has no more ideas.

Japan Turns Again to Bernanke, as Fruits of Abenomics Wither (BBG)

Less than three weeks before the Bank of Japan’s next scheduled policy meeting, Governor Haruhiko Kuroda met with former Federal Reserve Chairman Ben S. Bernanke over lunch on Monday. The BOJ issued no statement on the substance of the talks, which come as the central bank confronts a fresh strengthening in the yen this year that risks undermining inflation and weakening the appetite for investment and wage increases. Prime Minister Shinzo Abe will meet Bernanke at 3 p.m. local time on Tuesday, according to Abe’s office. For Bernanke, offering views on Japan’s challenges and policy options would be nothing new. He delivered a famous 2003 speech calling for greater cooperation between monetary and fiscal policy makers to defeat deflation and spur the economy.

In the room during Bernanke’s meetings with Japanese officials 13 years ago in Tokyo: Abe and Kuroda, who a decade hence unleashed an unprecedented stimulus to revive Japan. Now, that project is increasingly at risk with inflation moving away from the BOJ’s target, and GDP growth far from Abe’s goals. Bernanke’s 2003 visit, when he was a Federal Reserve Board member, and his message at the time is still discussed by BOJ officials. Japan has a tradition of seeking the advice of overseas experts, something that’s been taken to a new level under Abe, who consulted with Nobel laureates Paul Krugman and Joseph Stiglitz prior to his decision in June to delay a sales-tax hike. Unlike with this week’s Bernanke visit, the meetings with Krugman and Stiglitz were well-publicized.

Read more …

Stockman uses strange definitions of inflation and deflation. Nobody should use CPI.

Bernanke’s Black Helicopters Of Money (David Stockman)

Ben Bernanke is one of the most dangerous men walking the planet. In this age of central bank domination of economic life he is surely the pied piper of monetary ruin. At least since 2002 he has been talking about “helicopter money” as if a notion which is pure economic quackery actually had some legitimate basis. But strip away the pseudo scientific jargon, and it amounts to monetization of the public debt—–the very oldest form of something for nothing economics. Back then, of course, Ben’s jabbering about helicopter money was taken to be some sort of theoretical metaphor about the ultimate powers of central bankers, and especially their ability to forestall the boogey-man of “deflation”.

Indeed, Bernanke was held to be a leading economic scholar of the Great Depression and a disciple of Milton Friedman’s claim that Fed stringency during 1930-1932 had caused it. This is complete poppycock, as I demonstrated in The Great Deformation, but it did give an air of plausibility and even conservative pedigree to a truly stupid and dangerous idea. Right about then, in fact, Bernanke grandly promised during a speech at Friedman’s 90th birthday party that today’s enlightened central bankers – led by himself – would never let it happen again. Presumably Bernanke was speaking of the 25% deflation of the general price level after 1929.

The latter is always good for a big scare among modern audiences because no one seems to remember that the deflation of the 1930’s was nothing more than the partial liquidation of the 100%-300% inflation of the general price level during the Great War. In any event, Bernanke was tilting at windmills when he implied that the collapse of the US wartime and Roaring Twenties boom had anything to do with the conditions of 2002. Even the claim that Japan was suffering from severe deflation at the time was manifestly false. In fact, during the final stages of Japan great export and credit boom, the domestic price level had risen substantially, increasing by nearly 70% between 1976 and 1993. It then simply flattened-out – and appropriately so – after the great credit, real estate and stock market bubble collapse of 1990-1992.

Read more …

And this is the end result of QE et al.

The Trillions Spent By Central Banks Has Been A Dud: BofA (MW)

Toasts all around? U.S. stocks charged into record territory on Monday after Friday’s jobs report helped restore confidence in the U.S. economic recovery. But not so fast. The solid data mask a worrisome reality — despite the trillions collectively spent by central banks to breathe life into their economies since the 2008 financial crisis, authorities have been largely shooting blanks, according to Bank of America Merrill Lynch. The S&P 500 climbed to an intraday high of 2,143 Monday, passing the previous intraday record of 2,134.72 set on May 21, 2015. Stocks gained in part because the U.S. economy added 287,000 new jobs last month, far better than the gain of 170,000 projected by economists in a MarketWatch survey.

Yet the same report revealed that the labor participation rate—a metric to measure those who are employed or actively searching for jobs—is hovering at a 38-year low of 62.7%. A weak labor participation rate is an indication that an increasing number of people are leaving the labor force either through retirement or because they’re discouraged by not finding employment. It is also a sign that job growth isn’t tracking as robustly as it should considering that the U.S. economy expanded to $18 trillion in 2015 from $2.4 trillion in 1978. What’s more, the official unemployment rate edged up to 4.9% in June from 4.7% in May as more people entered the labor force looking for jobs. This headline number, however, excludes millions of part-time workers who would really rather work full time, as well as those who have become too discouraged to look for work, period. If this broader group was accounted for, the actual jobless rate would be closer to 10%.

It all suggests that the labor market, and by extension the economy, may not be as healthy as it should be given the prolonged period of accommodative monetary policy in the U.S. and elsewhere. It’s against this backdrop that a team led by Michael Hartnett, chief investment strategist at Bank of America Merrill Lynch, demonstrated how ineffective they believe central banks’ collective quantitative easing has been. Central banks around the world have cut interest rates a combined 659 times since Lehman Brothers filed for bankruptcy on Sept. 15, 2008, resulting in negative rates in many major economies, according to Hartnett. “Incited by the belief that every single interest rate in the world is heading to zero, the mountain of cash on the sidelines has induced fresh ‘irrational upside’ in government and corporate bonds,” said the strategist, in a note.

Read more …

A picture of the real China.

Ground Zero of China’s Slowdown Leaves Locals Looking for Exit (BBG)

Tea-shop manager Zhang Yue is so desperate about her home city of Tieling’s future that she’s borrowed about five times her annual income to buy a work visa to leave for Japan – an economy that’s flat-lined for a generation. “Two years ago, everything was fine and I bought whatever I wanted,” said Zhang, 29, whose husband’s wages have since halved and her own have stalled. “Then, suddenly, the slump started. The economy went straight down. It’s in free fall.” The home to about 3 million people in the northeast rust-belt province of Liaoning is ground zero in China’s slowdown – the worst-performing city in the worst-performing province. Ads offering work visas abroad are peppered across hoardings, and billboards offer loans for people in “urgent need.”

Shuttered car-parts factories flank the highway to the high-speed train station. In the center, a closed wedding-photograph studio has a notice in the window that reads: “Owner is going overseas. Shop for sale.” Tieling is among the places hardest hit by a slowdown across the nation of 1.4 billion people triggered in recent years by a commodity-price slump, housing correction and campaign to rein in wasteful investment. The city has seen a triple whammy from the three dynamics, which left the local economy contracting 6.2% last year – compared with national growth of near 7%. Fixed-asset investment in Tieling – largely property and infrastructure investment – plummeted 39%, steel output plunged 89%, industrial output dropped 18% and coal production was down almost 8%.

Read more …

Keep this up and tar and feathers are your part.

HSBC Avoided US Money Laundering Charges Because Of ‘Market Risk’ Fears (BBC)

US officials refused to prosecute HSBC for money laundering in 2012 because of concerns within the Department of Justice that it would cause a “global financial disaster”, a report says. A US Congressional report revealed UK officials, including Chancellor George Osborne, added to pressure by warning the US it could lead to market turmoil. The report alleges the UK “hampered” the probe and “influenced” the outcome. HSBC was accused of letting drug cartels use US banks to launder funds. The bank, which has its headquarters in London, paid a $1.92bn settlement but did not face criminal charges . No top officials at HSBC faced any charges. The report says: “George Osborne, the UK’s chief financial minister, intervened in the HSBC matter by sending a letter to Federal Reserve Chairman Ben Bernanke… to express the UK’s concerns regarding US enforcement actions against British banks.”

The letter said that prosecuting HSBC could have “very serious implications for financial and economic stability, particularly in Europe and Asia”. Justice Department spokesman Peter Carr said a series of factors were considered when deciding how to resolve a case, including whether there may be “adverse consequences for innocent third parties, such as employees, customers, investors, pension holders and the public”. The report also accuses former US Attorney General Eric Holder of misleading Congress about the decision. The report says Mr Holder ignored the recommendations of more junior staff to prosecute HSBC because of the bank’s “systemic importance” to the financial markets.

Read more …

Nonsensical article. If any of this were valid, US banks were so weak pre-Brexit, lower profits were cast in stone no matter what.

Brexit Seen Biting Profit for Years at US Banks (BBG)

When U.S. banks post second-quarter results in days, it’ll boil down to this: Bonus cuts are coming for just about everyone this year, says Wall Street recruiter Richard Lipstein. “If you are break-even, it’s an achievement.” That’s the picture taking shape as analysts trim estimates for the quarter and overhaul long-term projections for banks’ main businesses after the U.K.’s vote to leave the European Union. Starting this week, JPMorgan Chase, Citigroup and Goldman Sachs probably will say they saw a quick bump in trading after the June 23 referendum, but that deals are stalling and years of pain lie ahead. Combined net income at the six biggest U.S. banks is estimated to fall 18% in the second quarter from a year earlier, according to analysts surveyed by Bloomberg.

Fred Cannon, global research director at Keefe, Bruyette & Woods, said many analysts are just starting to rework projections for future periods to account for Brexit’s fallout, such as the prolonging of low interest rates. “We went from lower for longer into what seems like lower forever,” he said. That will erode interest from lending. Market turmoil and economic drags linked to Brexit will hurt investment banking revenue as companies reconsider acquisitions and selling new securities. And that’s after trading units suffered their worst first quarter since 2009.

For the full year, analysts predict combined earnings at the six U.S. banks – which also include Bank of America, Wells Fargo and Morgan Stanley – will drop 14%. It may only partially recover in 2017, the estimates show. The projections for both years tumbled after markets swung earlier this year, and then slipped further after the U.K. vote as analysts began updating research. “Up until June 24, everybody thought the second quarter was building a nice recovery, and now you have to question that,” said Chris Kotowski, a bank analyst at Oppenheimer & Co., referencing the day ballots were tallied. “I’m more cautious than I was.”

Read more …

As long as the country stays in the eurozone, yes.

Italy ‘Facing 20 Years Of Economic Woe’: IMF (BBC)

The IMF has warned that Italy faces two decades of stagnant economic growth. Its latest report on the country puts growth this year at under 1%, down from its previous 1.1% estimate, and forecasts growth in 2017 of about 1% – down from a 1.25% estimate. The IMF says Italy will not reach pre-crisis levels until 2025, by which time its neighbours will have economies 20-25% above 2008 levels. Italy is the third largest eurozone country. It has 11% unemployment and a banking sector in crisis, with government debt second only to that of Greece. The country’s banks are under pressure because the long-standing poor economic performance has depressed tax revenue and increased the chances of businesses getting into difficulty and being unable to maintain their loan payments.

Italian banks are weighed down by massive bad debts, and may need a significant injection of funds. The IMF says any recovery is likely to be prolonged and subject to risks. Among those risks are the UK’s withdrawal from the European Union, which it said last week had prompted it to downgrade its forecasts for growth for the entire eurozone. Other problem areas include “the refugee surge, and headwinds from the slowdown in global trade”.

Read more …

Just in case it wasn’t clear yet just how crazy our times are.

Dutch Bonds Just Did Something That We Haven’t Seen In 499 Years (BI)

Dutch 10-year government bond yields dropped below zero for the first time ever on Monday, making them the latest to join the negative yield club. The Netherlands’ 10-year dipped by 0.08 %age points to as low as -0.007%. It has fallen by about 30 basis points since the June Brexit vote. There’s roughly $13 trillion of global negative-yielding debt now, according to data from Bank of America Merrill Lynch, cited by the Wall Street Journal on Sunday. By comparison, there was about $11 trillion ahead of the UK’s vote on EU referendum.

When a bond is negative yielding, it means investors get less back when the debt is due than what they pay for it today. The Dutch bond yields are the lowest the country has ever seen. Amazingly, there’s nearly half a millennium of records to compare that against, as record keeping began in 1517. As a historical reference point, that’s the same year that Martin Luther published his 95 Theses. You can see the history of the Dutch 10-year going back to 1517 in the chart below, which was shared by Deutsche Bank’s Jim Reid in his Monday note to clients.

Read more …

America wants revenge.

Citibank To Close Key Venezuela Payment Account: Maduro (AFP)

Citibank plans to close the account Venezuela uses to make international payments, President Nicolas Maduro said Monday, accusing the US-based bank of a “financial blockade.” “Citibank, with no warning or communication, says that it is going to close the Central Bank and Bank Of Venezuela account. That is what you call a financial blockade,” the embattled president said in televised remarks. He said the move amounted to an “inquisition” by US President Barack Obama’s administration. Maduro said his South American nation, a major oil producer, uses the account to make payments “within 24 hours, to other accounts in the United States and worldwide.” Maduro’s socialist government has often claimed that US interests and local business elites were trying to blockade his state-led economy and prevent Venezuela’s access to international credit.

“Do you think they are going to stop us by putting in place a financial blockade? No, ladies and gentlemen, nobody stops Venezuela! With Citibank or without it, we are moving forward. With Kimberly or without, we are moving.” Venezuela’s government said just hours earlier that it would take over operations at facilities where US consumer goods giant Kimberly-Clark recently shut down, citing unworkable economic conditions. The American company announced on Saturday it would cease production, saying that it was impossible to get enough hard currency to buy raw materials, and that inflation was surging. “We are going to sign, at the workers’ request… to authorize immediate occupation of the workplace known as Kimberly-Clark de Venezuela… by its workers,” Labor Minister Oswaldo Vera said at the facility’s plant in the central city of Maracay.

Read more …

Look, they just don’t care. That’s what Britain has a unique oppottunity to step away from. It doesn’t mean there’s no corruption in Britain, but inside the EU it would be guaranteed. Note: it’s quite an achievement to get France’s socialists and Marine le Pen on the same page. But Barroso gets it done. AND he’ll remain eligible for his (very rich) EU benefits and pension …

European Commission Under Fire Over Barroso’s Goldman Sachs Job (EuO)

[..] “Barroso’s decision … is morally and politically deplorable”, said Gianni Pittella, leader of the Socialist and Democrats group in the European Parliament. “After 10 years of mediocre governance of the EU, now the former EU Commission president will serve those who aim to undermine our rules and values,” he added. The Brussels-based lobby watchdog, Corporate Europe Observatory’s (CEO), said the commission’s line – that Barroso acted within the rules – was “pathetic”. “Major loopholes exist in both the rules and the way in which they are implemented … there should be a mandatory cooling-off period of at least five years for former commission presidents regarding direct and indirect corporate lobbying activities,” the NGO’s Nina Holland said. She noted that nine of Barroso’s former commissioners had gone to work for big business after their terms ended in 2014.

Meanwhile, the timing of Barroso’s move could hardly have been worse for the commission. Eurosceptic movements around Europe have long accused EU officials of trampling on ordinary people’s welfare to serve the interests of elites in developments that came to a head in the Brexit vote. France’s far-right Marine Le Pen tweeted that the Barrose move was “not a surprise for people who know that the EU does not serve people but high finance”. French socialist MEPs called on Goldman Sachs to let him go. In a statement on Monday they called the appointment “outrageous and shameful”. They said that he breached the EU treaty and should be stripped of his EU benefits and pension.

They cited article 245 of the EU treaty, which says that commissioners should respect the “obligations arising therefrom and in particular their duty to behave with integrity and discretion as regards the acceptance, after they have ceased to hold office, of certain appointments or benefits.” Barroso led the commission through the tumultuous years of the euro crisis and related bailouts. Under his tenure, the EU set up financial rescue funds to help troubled countries and their banks, but at the cost of severe austerity in Greece, Ireland and Portugal. Goldman Sachs was one of the US investment banks at the heart of the 2008 financial crisis that triggered the events when lenders traded failing mortgages as parts of complex financial instruments.

Earlier this year, the Wall Street firm agreed to a civil settlement of up to $5 billion with federal prosecutors and regulators to resolve claims resulting from the marketing and selling of faulty mortgage securities to investors. Goldman Sachs also helped Greece to hide part of its deficit in the early 2000s, by using so called currency swaps. But the currency trades end up doubling the Greek deficit and leading to the edge of ruin. Barroso himself had been a student leader in an underground Maoist group during his university years. The 60 year-old served as prime minister of Portugal between 2002 and 2004 before heading the EU’s executive for 10 years.

Read more …

Accountants, unaccountable.

Oligarchs of the Treasure Islands (MWest)

The “Big Four” global accounting firms – PwC, Deloitte, KPMG and Ernst & Young – are the masterminds of multinational tax avoidance, the architects of tax schemes which cost governments and their taxpayers more than $US1 trillion a year. Although presenting as “the guardians of commerce” they are unregulated and unaccountable; they have infiltrated governments at every level and should be broken up. This is the view of George Rozvany, Australia’s most published expert on transfer pricing, which is one of the principal ways large corporations pursue cross-border tax avoidance. Rozvany stepped down last year as head of tax in Australia for the world’s biggest insurance company, Allianz. Formerly, he was an insider at Ernst & Young, PwC and Arthur Andersen.

“The Big Four have, under a Rasputin-like cloak of illusion strayed from their original and critical role of verifying the accuracy of financial accounts for all stakeholders, to be “accountants of fortune” merely representing the accounting position for multinationals and developing aggressive international tax avoidance practices,” he told michaelwest.com.au. Rozvany is writing a series of books on corporate tax ethics. “This is not a victimless crime,” he says. “While Western governments have been cutting back their aid to the most underprivileged in society, from the homeless to orphaned children in Africa, multinational companies have been diverting ever larger profits into tax havens”.

“The global community must also recognise the links between aggressive taxation behaviour, money laundering, corruption, organised crime and terrorism, of which the Brussels bombings and 9/11 are chilling reminders. This, unquestionably, is the financial sewer of humanity where the purpose for such money, no matter how malevolent, is simply hidden until used”, Rozvany says. [..] “Their signage adorns the skyline in every major city in the world. They have meticulously manicured their public image. They are spectacularly profitable but beyond the law. They are trusted but not trustworthy. They have become too big, too big to fail, so they must be broken up. Break up is hardly radical. It has been done in many industries including banking, oil and communications”.

Read more …

He’ll get stronger in the face of adversity.

Trump Wins -Even If He Loses- (Nomi Prins)

Once upon a time not so long ago, making America great again involved a bankroll untainted by the Republican political establishment and its billionaire backers. There would, The Donald swore, be no favors to repay after he was elected, no one to tell him what to do or how to do it just because they had chipped in a few million bucks. But for a man who prides himself on executing only “the best” of deals (trust him) this election has become too expensive to leave to self-reliance. One thing is guaranteed: Donald Trump will not pony up a few hundred million dollars from his own stash. As a result, despite claims that he would never do so, he’s finally taken a Super PAC or two on board and is now pursuing more financial aid even from people who don’t like him.

Robert Mercer and his daughter Rebekah, erstwhile influential billionaire backers of Ted Cruz, have, for instance, decided to turn their Make America Number 1 Super PAC into an anti-Hillary source of funds – this evidently at the encouragement of Ivanka Trump. In the big money context of post-Citizens United presidential politics, however, these are modest developments indeed (particularly compared to Hillary’s campaign). To grasp what Trump has failed to do when it comes to funding his presidential run, note that the Our Principles Super PAC, supported in part by Chicago Cubs owners Marlene Ricketts and her husband, billionaire T.D. Ameritrade founder J.

Joe Ricketts, has already raised more than $18.4 million for anti-Trump TV ads, meetings, and fundraising activities. (On the other hand, their son, Pete, Republican Governor of Nebraska, has given stump speeches supporting Trump.) To put this in context, that $18.4 million is more than the approximately $17 million that all of Trump’s individual supporters, the “little people,” have contributed to his campaign.

Read more …