Oct 112019
 
 October 11, 2019  Posted by at 9:57 am Finance Tagged with: , , , , , , , , , , ,  10 Responses »


Balthus Girl at a window 1957

 

How the Crybabies on Wall Street Try to Force the Fed into QE-4 (WS)
After Unveiling ‘NotQE’, Fed Eases Liquidity Rules For Foreign Banks (ZH)
America’s Political Implosion (SCF)
Dems Weigh Knee-Capping A Republican Impeachment Criticism (Pol.)
US House Republicans To Seek Sanctions On Turkey Over Kurd Offensive (R.)
Syrian Kurdish Leaders Urge EU To Pull Envoys Over Turkey Offensive (RT)
Pressure Mounts To Repatriate And Try IS Foreign Fighters (AFP)
Explosions Rock Iranian Tanker Near Saudi Port City Of Jeddah (RT)
GM’s Third-Quarter China Vehicle Sales Down 17.5% (R.)
What Jeff Bezos Wants (Atl.)
Facebook Paid Just £28m Tax On Record £1.6bn Earnings In UK (G.)

 

 

2 stories I couldn’t find decent pieces on: new hopes for a Brexit deal, and Giuliani’s ‘associates’ arrested. I was wondering why they were labeled his ‘associates’, but all I could find is they were ’associated’ with him. Right. Now, I always found Rudy a weird character, but these stories simply become part of the entire load of anti-Trump tales we’re doused in every day. It becomes impossible to judge what is real or not.

Meanwhile, while you weren’t looking, the Fed is busy saving Wall Street again. Got to rescue them bonuses.

How the Crybabies on Wall Street Try to Force the Fed into QE-4 (WS)

Fed Chair Jerome Powell’s explanation on Tuesday and the FOMC minutes released yesterday were a bitter disappointment for the Crybabies on Wall Street – the broker-dealers and banks: They’d expected a massive bout of QE, and perhaps some of the players had gleefully contributed to, or even instigated the turmoil in the repo market to make sure they would get that massive bout of QE as the Fed would be forced to calm the waters with QE, the theory went. This QE would include big purchases of long-term securities to push down long-term yields, and drive up the prices of those bonds these Crybabies are holding or have bet on with derivatives.


This is particularly crucial to the “primary dealers” – the 24 US and foreign broker-dealers and banks that are authorized to deal directly with the US Treasury and the New York Fed. They’ve been hoarding Treasury securities with longer maturities. As of October 2, according to the most recent data from the New York Fed, they hoarded $161 billion, double the $81 billion a year ago – though that has come down from the peak in July of $219 billion. Note the top two lines (black): Less than two-year maturities amounting to $74 billion; and 11-year and over maturities amounting to $37 billion. Not included on this chart are the primary dealers’ holdings of Treasury bills, TIPS, Agency securities, and Floating Rate Notes.

Primary dealers are funding their hoard in the repo market. These funding needs were putting pressures on the repo market, the Fed already said in its minutes for the July meeting, before repo rates totally blew out in mid-September. But primary dealers could have sold a large part of those securities, if they’d wanted to. Prices were high and yields were low, a sign that there was heavy demand. But the dealers were holding out for even higher prices and even lower yields. And any heavy selling could have pushed up those yields and steepened the yield curve, very unpalatable for folks clamoring for rate cuts. So these dealers are sitting on a pile of Treasury notes and bonds whose prices they want to rise, and therefore their yields would have to fall. Massive QE, where the Fed buys these types of Treasury securities, would accomplish that.

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Why would the banks not risk going broke? They’ll be saved no matter what.

After Unveiling ‘NotQE’, Fed Eases Liquidity Rules For Foreign Banks (ZH)

Having cracked down on Deutsche Bank in the past, The Fed appears to be playing good-regulator/bad-regulator as The FT reports that Deutsche is expected to benefit most from an imminent change in The Fed’s liquidity rules. Specifically, US banking regulators have dropped an idea to subject local branches of foreign banks to tough new liquidity rules (forcing US branches of foreign banks to hold a minimum level of liquid assets to protect them from a cash crunch). As The FT further details, people familiar with his thinking say Randal Quarles, the vice-chair for banking supervision at the Fed, accepts the banks’ argument that any liquidity rules on bank branches should only be imposed in conjunction with foreign regulators.

“Without some international agreement, we could have the situation where each country is trying to grab whatever isn’t nailed down if there is another scare.” And Deutsche Bank benefits most (or rescued from major liquidity needs) since it has by far the largest assets in US branches… Why would The Fed do this? Simple, it cannot afford another Lehman-like move (or even the fear of one)…

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The whole enchilada is under threat. Time to leave the partisan trenches.

America’s Political Implosion (SCF)

The polarization in American politics has become so extreme there seems no longer to be any center ground. The political establishment is consequently imploding into an abyss of its own making. President Trump is being driven into an impeachment process by Democrats and their media supporters who accuse him of being “unpatriotic” and a danger to national security. Trump and Republicans hit back at Democrats and the “deep state” whom they condemn for conspiring to overthrow the presidency in a coup dressed up as “impeachment”. The White House is being subpoenaed, the Democrat-controlled House of Representatives wants to access transcripts to all of Trump’s phone calls to foreign leaders; Secretary of State Mike Pompeo has blasted congressmen for “harassing the State Department” in their search of evidence to indict Trump.

Trump calls the impeachment bid a “witch-hunt”. Republican Representatives protest that the US is facing a dark day of constitutional crisis, whereby opposing Democratic party leaders are abusing their office by accusing Trump of “high crimes” without ever presenting evidence. It’s an Alice in Wonderland scenario writ large, where the gravest verdict is being cast before evidence is presented, never mind proven; the president is guilty until proven innocent. Trump, in his turn, has berated senior Democrat Adam Schiff, the chair of the House Intelligence Committee, for “treason” – a capital offense. Are federal police obliged to arrest him? Schiff is accused of colluding with a supposed CIA whistleblower in concocting the complaint that Trump tried to extort Ukrainian President Volodymyr Zelensky to dig dirt on Democratic presidential candidate Joe Biden.


There seems no end to this political civil war in the US. The American political class is literally tearing itself apart, destroying its ability to govern with any normal function. So-called liberal media outlets, in lockstep with the Democrats, inculpate Trump for wrongdoing, while they staunchly assert that credible reports of Joe Biden abusing his former vice presidential office to enrich his son over Ukraine gas business are false. Many Americans don’t see it that way. They see Biden as being up to his neck in past corruption; they also see a flagrant double-standard of the establishment protecting Biden from investigation while hounding Trump at every possible opportunity, even when evidence against Trump is scant.

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Curious way to phrase holding a simple vote.

Dems Weigh Knee-Capping A Republican Impeachment Criticism (Pol.)

House Democrats are grappling with whether to take more steps to formalize their impeachment inquiry and silence a chief Republican criticism of their efforts, with competing factions beginning to emerge. President Donald Trump and his allies on Capitol Hill have hammered Speaker Nancy Pelosi for not holding a vote authorizing the House’s impeachment proceedings — arguing that without a vote, the entire process is illegitimate. Pelosi has refused to cave, dismissing Trump’s demand last week and insisting it is not required under the Constitution or House rules. And allies close to the speaker say her position hasn’t changed, describing the idea as the latest “Republican canard” in a series of stall tactics the GOP will employ to protect Trump.

“It is one act after another of obstruction of justice by the White House, by the State Department, and by the attorney general. And I say, give them more rope to hang themselves,” Rep. Harley Rouda (D-Calif.), who flipped his conservative Orange County district in 2018, said in an interview. Yet some Democratic lawmakers and aides have begun to say privately — and, to a lesser extent, publicly — that the House should just vote to formalize the inquiry, robbing the GOP of its main talking point. The debate is threatening to cleave Democrats’ unified front as the White House makes the arcane procedural arguments the centerpiece of its impeachment defense. “If Nancy asked me, I would say sure, let’s have a vote. Everybody’s on record, so they’re not going to vote any differently. What’s the danger in having a vote to formalize it?” said Rep. John Yarmuth (D-Ky.), an early impeachment backer.


But the suggestion has provoked strong objections from some of their colleagues who say they would be abdicating their authority if lawmakers permit other branches of government to dictate their procedures. “If we allow that to happen, Congress would be completely dysfunctional,” Rep. Sean Casten (D-Ill.) said at a recent town hall event in Glen Ellyn, Ill. “If we have to take a complete show vote, we’ll get the vote. But I find it offensive that they are basically telling us how to do our job with a misreading of the Constitution. Read the freakin’ Constitution. And then let’s honor our oath to it.”

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Will the Democrats support this?

US House Republicans To Seek Sanctions On Turkey Over Kurd Offensive (R.)

Twenty-nine of President Donald Trump’s fellow Republicans in the U.S. House of Representatives announced on Thursday they would introduce legislation to impose sanctions against Turkey, underscoring lawmakers unhappiness about its assault on Kurdish forces in Syria. A day after Republicans and Democrats announced similar legislation in the Senate, the lawmakers – including Republican Leader Kevin McCarthy, Republican Whip Steve Scalise and other party leaders – said they wanted a strong response to Ankara’s aggression. “President (Recep Tayyip) Erdogan and his regime must face serious consequences for mercilessly attacking our Kurdish allies in northern Syria,” Republican Representative Liz Cheney, chairwoman of the House Republican Conference, said in a statement.


It was not immediately clear how the legislation would fare in the House of Representatives, which is controlled by Democrats. On Sunday, Trump abruptly shifted policy and said he was withdrawing U.S. forces from northeastern Syria, clearing the way for Turkey to launch an assault across the border. Turkey began the offensive quickly, pounding Kurdish militias, who recently were fighting alongside U.S. forces against Islamic State militants, on Wednesday and Thursday, killing dozens and forcing many thousands of people to flee.

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Erdogan has threatend to release 3.6 million refugees into Europe, so don’t hold your breath for this one.

Syrian Kurdish Leaders Urge EU To Pull Envoys Over Turkey Offensive (RT)

Kurdish leaders have called on European countries to withdraw their ambassadors from Turkey in protest at Ankara’s military operation against their forces in northern Syria. A delegation from the Syrian Democratic Council (SDC) – the political wing of the Syrian Democratic Forces (SDF) – traveled to Brussels on Thursday to urge the EU to take concrete measures to punish Turkey, AFP reports. “We want an urgent intervention on this crisis, and these attacks should be stopped quickly. Air space should be closed for Turkish flights so that air attacks can be stopped,” senior SDC figure Ilham Ahmed said in Brussels. “All European states should freeze their relations by withdrawing their ambassadors from Turkey immediately.” The EU has urged Turkey to halt the assault but has not taken any action. The bloc’s foreign ministers will discuss the crisis at a regular meeting on Monday.

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There are thousands and Europe has tried only to look away for years.

Pressure Mounts To Repatriate And Try IS Foreign Fighters (AFP)

US President Donald Trump’s decision to take custody of dozens of high-value Islamic State militants from the under-siege Kurds avoided their possible release but raised the pressure on Washington and its allies to accept them for trial. Until now Trump had repeatedly refused to take responsibility for any of the fighters, but announced Wednesday that, as Turkish troops were invading northeastern Syria, the US was taking over custody of “some of the most dangerous ISIS fighters” from the Syrian Democratic Forces. They included two notorious British Islamic State fighters who were part of a four-man kidnap-and-torture cell known as “The Beatles,” which beheaded captives, including foreign journalists and aid workers.


According to media reports, US forces planned to assume control of several dozen captured Islamic State fighters from SDF camps to prevent their escape. That could accelerate the need to resolve the problem of an estimated 2,000 IS foreign fighters, and 8,000 local IS militants, that have been held by the SDF since coalition forces crushed the jihadist army earlier this year. French Foreign Minister Jean-Yves Le Drian called Thursday for an emergency meeting of the US-led coalition against the Islamic State to address the detainee challenge. “The international coalition should meet because we are in a new situation and because the fight against Daesh risks reigniting as Daesh was waiting for this opportunity,” Le Drian said, referring to IS by its Arabic name.

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Oh, lovely.

Explosions Rock Iranian Tanker Near Saudi Port City Of Jeddah (RT)

A tanker belonging to Iran’s government-owned oil corporation has been hit by two missiles and caught fire in the Red Sea, 60 miles from Saudi shores. The incident is being treated as a terrorist attack, local media says.
The tanker Sinopa, operated by the National Iranian Oil Company (NIOC), was sailing through the Red Sea when the explosion occurred. The blast was powerful enough to damage two of its reservoirs, leading to an oil spill in the area. Local media cited unnamed Iranian “technical experts” who believe that the incident could have been caused by a “terrorist attack,” but didn’t provide any evidence to back the claim.


The tanker’s crew wasn’t hurt in the incident, which took place near Jeddah, the largest port in the Red Sea and maritime gateway to Saudi Arabia. NIOC, which once ranked second after Saudi Aramco in terms of crude oil extraction, told state-run IRNA news agency that the vessel was hit by what appears to be two missiles. That report did not expand on where the attack came from.

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Small is beautiful.

GM’s Third-Quarter China Vehicle Sales Down 17.5% (R.)

General Motors Co’s July to September vehicle sales in China fell 17.5%, as the U.S. automaker was hurt by a slowing economy amid the Sino-U.S. trade war and by heightened competition in its key mid-priced SUV segment. GM delivered 689,531 vehicles in China in the third quarter this year, according to a company statement. The drop for the quarter ended September 30 marks the fifth straight quarterly sales decline for GM in China, the world’s biggest auto market. It delivered 2.26 million vehicles in the first nine months this year, according to Reuters calculation.


As GM and Ford Motor Co’s China sales extend declines, U.S. car companies’ share of total China passenger vehicles sales fell to 9.5% in the first eight months of this year from 10.7% in the year-ago period, according to the China Association of Automobile Manufacturers (CAAM). Over the same period, German car makers’ share has risen to 23.8% from 21.6% and Japanese auto makers’ to 21.7% from 18.3%.

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Wasn’t he the guy who wants to live on the moon?

What Jeff Bezos Wants (Atl.)

Where in the pantheon of American commercial titans does Jeffrey Bezos belong? Andrew Carnegie’s hearths forged the steel that became the skeleton of the railroad and the city. John D. Rockefeller refined 90 percent of American oil, which supplied the pre-electric nation with light. Bill Gates created a program that was considered a prerequisite for turning on a computer. At 55, Bezos has never dominated a major market as thoroughly as any of these forebears, and while he is presently the richest man on the planet, he has less wealth than Gates did at his zenith. Yet Rockefeller largely contented himself with oil wells, pump stations, and railcars; Gates’s fortune depended on an operating system. The scope of the empire the founder and CEO of Amazon has built is wider. Indeed, it is without precedent in the long history of American capitalism.


Today, Bezos controls nearly 40 percent of all e-commerce in the United States. More product searches are conducted on Amazon than on Google, which has allowed Bezos to build an advertising business as valuable as the entirety of IBM. One estimate has Amazon Web Services controlling almost half of the cloud-computing industry—institutions as varied as General Electric, Unilever, and even the CIA rely on its servers. Forty-two percent of paper book sales and a third of the market for streaming video are controlled by the company; Twitch, its video platform popular among gamers, attracts 15 million users a day. Add The Washington Post to this portfolio and Bezos is, at a minimum, a rival to the likes of Disney’s Bob Iger or the suits at AT&T, and arguably the most powerful man in American culture.

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“Profits on social media app surged by more than 50% to £797m in latest tax year..”

Facebook Paid Just £28m Tax On Record £1.6bn Earnings In UK (G.)

Facebook’s UK operations paid £28m in tax last year despite attracting a record £1.6bn in British sales. The social media company’s latest UK accounts show that gross income from advertisers rose almost 30% last year to £1.65bn, and pretax profits surged by more than 50% from £63m to £97m. Facebook UK said the net revenues it made from advertisers rose 50% last year to £797m, meaning 12% of its sales were converted to profits. This falls far short of the company’s overall performance – last year Facebook made $25bn (£19.7bn) of profit on total sales of $55.8bn – meaning it converted 44% of its sales into profits.


Facebook’s UK operation expanded rapidly last year with staff numbers rising by more than 50%, from 1,290 to 1,965 year on year, with a total staff wages and pension bill of £431m. The company’s UK office provides marketing services and sales and engineering support to other parts of the company. Facebook said it spent £356m on research, development and engineering in the UK last year. Last month, online retail giant Amazon came under fire for paying just £14.7m in UK corporation tax last year, despite reporting sales of £2.3bn. Earlier this month, Netflix UK’s accounts showed that the streaming giant received a €57,000 (£51,000) tax rebate from the UK government last year, despite making an estimated £700m from British subscribers bingeing on fare from The Crown to Stranger Things.

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A baby Grauer’s gorilla, a critically endangered species, in the forest of Kahuzi-Biega National Park in the Democratic Republic of Congo. In 2018, logging began in the protected area, threatening the habitat of the gorillas.

 

 

 

 

Aug 302019
 


Marc Chagall The soldier drinks 1912

 

We Have A Russian Asset Sitting In The Oval Office (BI)
China Rejected Hong Kong Plan To Appease Protesters (R.)
Hong Kong Police Ban Upcoming Rally Citing Public Order Concerns (HKFP)
Saturday Protest Canceled In Hong Kong After Sudden Arrest Of Key Activists (ZH)
Hong Kong Activist Joshua Wong Arrested In Crackdown On Protests (R.)
No Need Yet For Hong Kong To Use Emergency Powers: Senior Official (R.)
Hong Kong Emergency Powers ‘Would Be Used In A Measured Way’ – Adviser (SCMP)
I’m Going To Court To Stop Proroguing Parliament (Gina Miller)
BNP Paribas Plans Bid For Deutsche Bank’s Equity Derivatives (R.)
In Search of a Russiagate Scalp: The Entrapment of Maria Butina (Kiriakou)
Australia’s High Household Debt Could Complicate Rate Decisions – RBA (R.)
Australia Downgrades Outlook For Great Barrier Reef To ‘Very Poor’ (AFP)
The Amazon Is Not Earth’s Lungs (Atl.)

 

 

The echo chamber continues unabated. It answers only to itself. James Comey even demands apologies after leaking internal FBI info to get Mueller started.

We Have A Russian Asset Sitting In The Oval Office (BI)

“It’s hard to see the bar anymore since it’s been pushed so far down the last few years, but President Trump’s behavior over the weekend was a new low.” That was the assessment an FBI agent who works in counterintelligence gave Insider of President Donald Trump’s performance at this year’s G7 summit in Biarritz, France. The agent requested anonymity because they feared that speaking publicly on the matter would jeopardize their job. Trump’s attendance at the G7 summit was peppered with controversy, but none was more notable than his fervent defense of Russia’s military and cyber aggression around the world, and its violation of international law in Ukraine.

Trump repeatedly refused to hold Russia accountable for annexing Crimea in 2014, blamed former President Barack Obama for Russia’s move to annex it, expressed sympathy for Russian President Vladimir Putin, and castigated other G7 members for not giving the country a seat at the table. Since being booted from the G8 after annexing Crimea, Russia’s done little to make up for its actions. In fact, by many accounts, it’s stepped up its aggression. In addition to continuing to encroach on Ukraine, the Russian government interfered in the 2016 US election and was behind the attempted assassination of a former Russian spy in the UK. US officials also warn that as the 2020 election looms, the Russians are stepping up their cyberactivities against the US and have repeatedly tried to attack US power grids.

“What in God’s name made Trump think it would be a good idea to ask to bring Russia back to the table?” the FBI agent told Insider. “How does this serve US national-security interests?” Trump’s advocacy for Russia is renewing concerns among intelligence veterans that Trump may be a Russian “asset” who can be manipulated or influenced to serve Russian interests, although some also speculate that Trump could just be currying favor for future business deals. A former senior Justice Department official, who worked closely with the former special counsel Robert Mueller when he was FBI director, didn’t mince words when reacting to Trump’s performance at the G7 summit: “We have a Russian asset sitting in the Oval Office.”

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Lots of Hong Kong today. Let’s start here.

China Rejected Hong Kong Plan To Appease Protesters (R.)

Earlier this summer, Carrie Lam, the chief executive of Hong Kong, submitted a report to Beijing that assessed protesters’ five key demands and found that withdrawing a contentious extradition bill could help defuse the mounting political crisis in the territory. The Chinese central government rejected Lam’s proposal to withdraw the extradition bill and ordered her not to yield to any of the protesters’ other demands at that time, three individuals with direct knowledge of the matter told Reuters. China’s role in directing how Hong Kong handles the protests has been widely assumed, supported by stern statements in state media about the country’s sovereignty and protesters’ “radical” goals.

Beijing’s rebuff of Lam’s proposal for how to resolve the crisis, detailed for the first time by Reuters, represents concrete evidence of the extent to which China is controlling the Hong Kong government’s response to the unrest. The Chinese central government has condemned the protests and accused foreign powers of fuelling unrest. The Foreign Ministry has repeatedly warned other nations against interfering in Hong Kong, reiterating that the situation there is an “internal affair.” Lam’s report on the tumult, made before an Aug. 7 meeting in Shenzhen about Hong Kong led by senior Chinese officials that examined the feasibility of the five demands of the protesters, analyzing how conceding to some of these might quiet things down, the individuals with direct knowledge said.

In addition to the withdrawal of the extradition bill, the other demands analyzed in the report were: an independent inquiry into the protests; fully democratic elections; dropping of the term “riot” in describing protests; and dropping charges against those arrested so far. The withdrawal of the bill and an independent inquiry were seen to be the most feasible politically, according to a senior government official in the Hong Kong administration, who spoke on condition of anonymity. He said the move was envisioned as helping pacify some of the more moderate protesters who have been angered by Lam’s silence.

[..] The extradition bill is one of the key issues that has helped drive the protests, which have drawn millions of people into the streets of Hong Kong. Lam has said the bill is “dead,” but has refused to say explicitly that it has been “withdrawn.” Beijing told Lam not to withdraw the bill, or to launch an inquiry into the tumult, including allegations of excessive police force, according to the senior government official. Another of the three individuals, who has close ties with senior officials in Hong Kong and also declined to be identified, confirmed the Hong Kong government had submitted the report. “They said no” to all five demands, said the source. “The situation is far more complicated than most people realize.”

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Question is: how many people will come out? Some rallies saw 1.5 million of the city’s 7.5 million on the streets.

Hong Kong Police Ban Upcoming Rally Citing Public Order Concerns (HKFP)

Hong Kong police have banned both a rally and a march organised by the Civil Human Rights Front planned for Saturday, according to the group’s convener Jimmy Sham. It marked the first time that an entire event organised by the pro-democracy coalition has been prohibited owing to concerns over public order. Sham said police had cited previous confrontations between protesters and police as the reason for the ban. The event was themed around reiterating the five core demands of anti-extradition law protesters on the fifth anniversary of Beijing’s decision to impose restrictive measures on Hong Kong elections. The original plan was to rally at Chater Garden at 2:30pm then march to the China Liaison Office in Sai Wan at 3pm.


Sham said the Front will appeal the decision after speaking with lawyers: “We did not see a very clear reason [to ban the protest] in the objection letter,” he said. “We will discuss ways for residents to exercise their right to protest in a safe and legal way,” he added. “[Chief Executive] Carrie Lam has not allowed Hong Kong to return to calm, but she has used different means to make Hong Kong people even angrier.” The police previously banned the Front’s march on August 18, citing public security concerns, but approved a static rally at Victoria Park. However, protesters marched peacefully to Central nonetheless, without facing any police interference.

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China understands only fear, it would seem.

Saturday Protest Canceled In Hong Kong After Sudden Arrest Of Key Activists (ZH)

Summary: Saturday’s planned protest in Hong Kong has been canceled after the arrest of three of Hong Kong’s pro-democracy protest leaders on Friday; Joshua Wong, Andy Chan, and Agnes Chow. CNBC’s Eunice Yoon notes that the arrests are being described on Chinese media as a crackdown on “the activists who create chaos in Hong Kong.”

Update (0105ET): Saturday’s planned protest marking the fifth anniversary of the 2014 event which sparked the Umbrella Movement has been canceled, according to The Guardian. Bonnie Leung from the Civil Human Rights Front said: “The appeal board has just rejected our appeal. Our first principle is always to protect all the participants and make sure that no one could bear legal consequences because of participating in the protest that we organised. However, because of the appeal board’s decision, we can see no way that we can keep this principle and also continue our march and protest. Therefore the civil human rights front has no option but to cancel the march tomorrow.”

The Civil Human Rights Front would like to sincerely apologise to the public and hope you can understand what we explained and the difficulty we are facing. At the same time, we understand that the right to march and the right to protest is a human right and is very important to Hong Kong people. The CHRF will continue to apply for marches and apply for rallies. “I think the police are using all kinds of excuses to arrest all kinds of people including us. They arrested Joshua Wong and Agnes Chow this morning so there is a real danger we could face the same consequences as well. We will try our best to preserve CHRF as a legal organiser. If we do otherwise, the police may use that as an excuse to give us even more trouble in the future,” she added.

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He’s like the guy in front of the tank in Tiananmen.

Hong Kong Activist Joshua Wong Arrested In Crackdown On Protests (R.)

Wong, the icon of pro-democracy demonstrations five years ago that foreshadowed the latest turbulence, is the highest-profile arrest since protests escalated in mid-June over fears Beijing was exerting greater control over the city. Two other prominent activists, Andy Chan and Agnes Chow, have also been detained. The bespectacled Wong, who was 17 when he became the face of the student-led Umbrella Movement, has not been a prominent figure in current protests which have no identifiable leaders. He was released from jail in June after serving a five-week term for contempt of court. “He was suddenly pushed into a private car on the street,” Wong’s political party Demosisto, which advocates for greater democracy in Hong Kong, said on its official Twitter account.


“He has now been escorted to the police headquarters in Wan Chai,” it said. Demosisto’s lawyers were working on the case, it said. Police said Wong and Chow, both 22, were arrested on Friday on suspicion of “organizing unorganized assembly” and “knowingly participating in unauthorized assembly”. Chan, a founder of the pro-independence Hong Kong National Party that was banned last September, was arrested at Hong Kong’s international airport on Thursday on suspicion of “participating in riots” and “attacking police” during a protest on July 13, police said. Police have refused permission for a pro-democracy march on Saturday and an appeal by organizers to allow the demonstration to proceed was turned down on Friday.

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If they don’t respond to the protesters’ demands, they will have no choice.

No Need Yet For Hong Kong To Use Emergency Powers: Senior Official (R.)

Hong Kong is a long way from having to declare emergency powers or to ask the Chinese military to intervene, a senior official with China’s parliament and pro-Beijing Hong Kong politician told Reuters, as months of protests show no sign of abating. Hong Kong has been engulfed in angry and sometimes violent protests against the government since mid-June, sparked by a now-suspended extradition bill and concerns that Beijing was trying to bring the territory under greater mainland control. Police fired water cannon and tear gas at anti-government demonstrators on Sunday, and Hong Kong leader Carrie Lam warned later that authorities would be forced to stamp down on the escalating violence.

Maria Tam, deputy director of the Chinese parliament’s Basic Law Committee, told Reuters in Beijing late on Thursday emergency legislation was not something for which Hong Kong’s government would have to ask Beijing’s permission. “The emergency legislation is something that is left behind by the colonial British government. It’s nothing to do with the Basic Law. It’s entirely in the power of the highly autonomous region,” Tam said, referring to the mini-constitution under which Hong Kong has been ruled since the 1997 return to China.

“At the moment there are still plenty of tools. We have different articles in the police force ordinance and articles in the public order ordinance which we can still invoke to control the situation. We haven’t got to the stage when we really have to engage in enacted laws by the chief executive with the executive council to, for example, enact anti-mask or interception of internet messages. We’re quite a distance from that,” she said. However, there may come a stage when Hong Kong has to do this, Tam said. “I think if its come to the stage when all the other ordinances I have mentioned have failed to work, then I suppose the chief executive may have to consider it,” she said.

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China needs Hong Kong as a trade center.

Hong Kong Emergency Powers ‘Would Be Used In A Measured Way’ – Adviser (SCMP)

The use of any emergency powers at the government’s disposal to end Hong Kong’s escalating protest crisis would have to come in a measured way rather than a blanket crackdown, to protect the city’s status as an international financial centre, a top adviser to the city’s embattled leader said on Wednesday. However, Executive Council convenor Bernard Chan said that while Chief Executive Carrie Lam Cheng Yuet-ngor’s administration had the option of using the Emergency Regulations Ordinance, the city was nowhere near requiring such a move, which would grant the power to seize property or shut down the internet.

Chan was speaking at the latest China Conference organised by the South China Morning Post, this time focusing on Beijing’s ambitious Greater Bay Area (GBA) plan in the context of Hong Kong’s advantages and challenges. The GBA national plan is to turn Hong Kong, Macau and nine other Guangdong cities into a financial and technological powerhouse to rival Silicon Valley by 2035, with the two special administrative regions playing a leading role on the strength of the unique “one country, two systems” policy under which they are governed.

[..] he cautioned that speculative news reports were unnecessarily inciting fear, and suggested the government would not turn the city upside down overnight. “I know in some countries they decide to shut down the whole internet, that’s crazy, that would be so unhelpful for all the businesspeople in Hong Kong,” Chan said. “I think whatever decision we make, it has to be very measured, and equitable, and lawful.”

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One of many court cases. They appear to be too many in too many different courts for now. Focus!

I’m Going To Court To Stop Proroguing Parliament (Gina Miller)

My legal team and I have been in communication with Johnson’s legal advisers since early July. They repeatedly and comprehensively reassured me that prorogation was not an option for him, and that the whole issue was of no more than “academic” interest. I was therefore stunned by the announcement on Tuesday, not least because their last reply to us was on Monday evening. Lies are being told, professional rules broken, and a ruthless prime minister is subjecting our unwritten constitution to stresses that would have been unimaginable a few years ago.

As a country we have more of a political constitution than a legal one, and as such it operates via conventions and precedents. I believe those conventions and precedents mean that prorogation is not to be used in the manner Johnson has announced, and disagree with the views of the eminent former supreme court justice Jonathan Sumption when he says this is not a matter for the courts. The effect of a prorogation of this length will be to prevent parliament from fulfilling its statutory duty to scrutinise any agreement between the UK and the EU. When you add to this the fact that the government must exercise its prerogative powers in good faith, I believe there is a legal principle at stake that qualifies for judicial review. I also think that Sumption has failed to take account of the evolutionary nature of the UK constitution, and that in these unprecedented constitutional times, the legal arguments involved can also be expected to be unprecedented.

The charge the Johnson government is making against me is that I am using the courts to subvert the will of the people. But a no-deal Brexit was never the will of the people, and at no point during the EU referendum campaign did the people authorise any government to abandon not just parliamentary democracy, but the laws of the land. Our laws are ultimately all that protect us from tyranny, and before them we are all equal – prime ministers and private citizens alike. Even against the desperate time constraints imposed upon us, I am hopeful that the courts will be able to check the omnipotent power Johnson wants for himself.

• Gina Miller is a businesswoman and transparency activist, and is taking legal action to prevent Boris Johnson proroguing parliament.

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For how many pennies on the dollar?

BNP Paribas Plans Bid For Deutsche Bank’s Equity Derivatives (R.)

French lender BNP Paribas plans to bid for Deutsche Bank’s equity derivatives book and is hopeful it can beat off rival bidders to secure a deal in the next few weeks, according to sources familiar with the matter. Deutsche Bank is selling the portfolio as part of a restructuring that will see it exit equities trading and other unwanted businesses and shed 18,000 staff globally. CEO Christian Sewing is hoping the plan will turn around the bank, whose shares hit a record low this month. Deutsche Bank plans to auction its equity derivatives portfolio next month having received significant expressions of interest from banks, private equity firms and hedge funds, the sources told Reuters. It may sell the book in separate tranches rather than in its entirety, they said.

BNP is already close to taking control of Deutsche Bank’s prime brokerage business, which serves hedge fund clients. A preliminary deal was struck in July which is expected to be formalized early next month. Any equity derivatives deal would be separate from that transaction, the sources said. Reuters reported last month that Deutsche Bank’s derivatives exposure is tying up capital that could have generated income of 500 million euros a year. Reuters also reported the bank has set aside over 1 billion euros to cover the cost of offloading derivatives moved to its so-called “bad bank,” or capital restructuring unit to be wound down or sold.

The restructuring has seen the bank hive off 288 billion euros of assets into the bad bank. Equities, including equity derivatives, accounted for around 170 billion euros of those assets. Fixed-income assets, including long-dated interest rate and credit derivatives, accounted for 79 billion euros. The equity derivatives are short-dated and expected to attract a lot of interest from buyers, meaning Deutsche Bank may not have to take a discount to offload them. The bank’s longer-dated interest rate and credit derivatives are expected to be much harder to sell, as they require high levels of capital to be held against them, and could require deep writedowns [..]

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More Comey.

In Search of a Russiagate Scalp: The Entrapment of Maria Butina (Kiriakou)

Forgive me if this is burying the lede, but I also want to talk about how Maria Butina got into this predicament in the first place. We know that she was very active in the gun rights movement in both Russia and the U.S. and that she sought to improve contact between gun groups in both countries. We also know that she met and began dating Patrick Byrne, the founder and CEO of Overstock.com. We learned recently, thanks to Byrne himself, that he was a longtime FBI source and that the FBI directed him to begin dating Butina. He did so. And he reported back to the FBI that she was simply a graduate student. That wasn’t good enough for the FBI, though and, according to Byrne, he was instructed to go back to Butina, to begin a sexual relationship with her, and to again report back to the FBI. He did that, too.

In the end, the Justice Department accused her publicly of “trading sexual favors” for access, an accusation that prosecutors had to withdraw. It was patently untrue. But that didn’t stop them from accusing her in the press of being a Russian spy, which she was not. And it didn’t stop the judge from giving her three times the maximum sentence called for by the sentencing guidelines. I will ask your forgiveness again if I sound like a broken record. But this is how the FBI makes their cases. They entrap people. I’ve written extensively about how the FBI brazenly carried out a sting operation against me (unsuccessfully) that could have resulted in an espionage conviction and as much as 30 years in prison. They did the same thing to Butina.

Butina wasn’t committing a crime, so they just made something up, leaked it to the press, allowed it to influence the public and the judge, and hoped she would cave and take a plea. She did. Byrne went on CNN last week to say that two of the three people who instructed him to do all of this were James Comey, Peter Strzok, and another as-yet-unnamed individual. The operation was hatched at the top. The whole story sickens me.

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EU countries with high household debt are out of luck. They don’t make their own decisions.

Australia’s High Household Debt Could Complicate Rate Decisions – RBA (R.)

High household debt in Australia could make the economy less resilient to shocks and complicate future interest rate decisions, the country’s central bank said on Friday. A long boom in Australia’s housing market that ended in 2017 had sent the household debt to income ratio to all-time highs, prompting regulators to tighten bank lending standards which in-turn led to home prices crumbling. The recent property downturn together with miserly wage growth have squeezed household balance sheets and hurt consumer spending, a major reason why the Reserve Bank of Australia (RBA) cut interest rates twice since June to a record low of 1%.


“Movements in asset values and leverage may be more important for economic developments than in the past given the already high levels of debt on household balance sheets,” the RBA said in its 2019/20 corporate plan. The household debt to income ratio is above 190%, among the highest in the developed world. “Especially in the context of weak growth in household income, high debt levels could complicate future monetary policy decisions by making the economy less resilient to shocks,” it added.

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First you destroy, then you downgrade.

Australia Downgrades Outlook For Great Barrier Reef To ‘Very Poor’ (AFP)

The long-term outlook for Australia’s Great Barrier Reef was downgraded to “very poor” for the first time Friday by the official agency charged with managing the world heritage site. In its latest five-yearly report on the health of the world’s largest coral reef, the Great Barrier Reef Marine Park Authority singled out rising sea temperatures due to climate change as the biggest threat to the giant organism. “The significant and large-scale impacts from record-breaking sea surface temperatures have resulted in coral reef habitat transitioning from poor to very poor condition,” the government agency said. It said “strong and effective management actions are urgent at global, regional and local scales” to rescue the 2,300-kilometre (1,400-mile) reef, a UNESCO World Heritage site.


“The Reef is core to Australia’s identity and improving its outlook is critical,” it said, adding that in addition to countering climate change, further action was needed to halt the run-off of agricultural pollutants into reef areas. “The window of opportunity to improve the reef’s long-term future is now,” it said. The conservative Australian government has faced criticism from environmentalists for favouring an expansion of its massive coal mining and export industry over action to curb climate change. Friday’s reef report coincided with the release of new government data showing that Australia’s emissions of greenhouse gases blamed for climate change continued a four-year rising trend during the first half of 2019.

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Science counts.

The Amazon Is Not Earth’s Lungs (Atl.)

As tongues of flame lapped the planet’s largest tract of rain forest over the past few weeks, it has rightfully inspired the world’s horror. The entire Amazon could be nearing the edge of a desiccating feedback loop, one that could end in catastrophic collapse. This collapse would threaten millions of species, from every branch of the tree of life, each of them—its idiosyncratic splendor, its subjective animal perception of the world—irretrievable once it’s gone. This arson has been tacitly encouraged by a Brazilian administration that is determined to develop the rain forest, over the objections of its indigenous inhabitants and the world at large. Losing the Amazon, beyond representing a planetary historic tragedy beyond measure, would also make meeting the ambitious climate goals of the Paris Agreement all but impossible.

World leaders need to marshal all their political and diplomatic might to save it. The Amazon is a vast, ineffable, vital, living wonder. It does not, however, supply the planet with 20 percent of its oxygen. As the biochemist Nick Lane wrote in his 2003 book Oxygen, “Even the most foolhardy destruction of world forests could hardly dint our oxygen supply, though in other respects such short-sighted idiocy is an unspeakable tragedy.” The Amazon produces about 6 percent of the oxygen currently being made by photosynthetic organisms alive on the planet today. But surprisingly, this is not where most of our oxygen comes from.

In fact, from a broader Earth-system perspective, in which the biosphere not only creates but also consumes free oxygen, the Amazon’s contribution to our planet’s unusual abundance of the stuff is more or less zero. This is not a pedantic detail. Geology provides a strange picture of how the world works that helps illuminate just how bizarre and unprecedented the ongoing human experiment on the planet really is. Contrary to almost every popular account, Earth maintains an unusual surfeit of free oxygen—an incredibly reactive gas that does not want to be in the atmosphere—largely due not to living, breathing trees, but to the existence, underground, of fossil fuels.

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Jul 252019
 
 July 25, 2019  Posted by at 9:32 am Finance Tagged with: , , , , , , , , ,  7 Responses »


Piet Mondriaan Trafalgar Square 1939-43

 

Trump Cheers As Michael Moore Blasts ‘Frail’ Mueller (AFP)
Donald Trump Vetoes Bills Prohibiting Arms Sales To Saudi Arabia (AP)
Nothing Matters: It’s Like the Whole Market Has Gone Nuts (WS)
Mnuchin Says Amazon ‘Destroyed’ US Retail Sector (R.)
Boeing Says It Could Halt Production Of 737 Max After Grounding (G.)
Jeffrey Epstein Found Injured In Jail Cell (R.)
Embattled Governor Of Puerto Rico Resigns After Protests (AFP)
With Finger On Trigger, ECB Aims At More Stimulus (R.)
Deutsche Bank Faces A -Much- Smaller, Poorer Future (Coppola)
California Condor Comes Back From The Dead (NPR)

 

 

There are still people calling for impeachment after Mueller’s horror show yesterday. Saw both AOC and Rob Reiner do just that. The somewhat more awake amongst us merely feel sorry for the old man, but that goes too far. He put himself in that position. He’s never delivered any proof of Russian meddling, but that doesn’t appear to bother many. He refused to talk to Assange just so that meddling narrative could be kept alive.

But the biggest takeaway from the hearing must be that Mueller didn’t write his own report, something that became glaringly obvious when he didn’t know what Fusion GPS was. Mueller has just been the face of an investigation that was conducted by others. He is the supposed hero who’s ideal as the front for such a thing. But the thing is hollow and empty.

There were far too many things Mueller said were not in his purview (he said that 16 times) of which at least some certainly were. Moreover, as several members of Congress pointed out, Mueller got far too close to ignoring the presumption of innocence. Trump does not have to prove he’s innocent, Mueller had to prove he’s guilty – and failed.

Trump Cheers As Michael Moore Blasts ‘Frail’ Mueller (AFP)

In a rare meeting of minds Wednesday between two opposing American political voices, Michael Moore earned plaudits from President Donald Trump when the liberal filmmaker blasted former special counsel Robert Mueller’s “stumbling” congressional testimony. Moore, a frequent Trump critic who has also warned of the Democratic Party’s failure to resonate with working-class America, let loose on Mueller as he testified in often halting fashion before Congress about Russian election interference and possible connections to Trump and his 2016 campaign. “A frail old man, unable to remember things, stumbling, refusing to answer basic questions,” Moore said in a scathing tweet after Mueller appeared uncertain and asked for several questions to be repeated during some of the most closely watched congressional hearings of the year.

“I said it in 2017 and Mueller confirmed it today — All you pundits and moderates and lame Dems who told the public to put their faith in the esteemed Robert Mueller — just STFU from now on,” he added, using a crass acronym that includes an expletive. Trump seized on the famed documentarian and Academy Award winner’s fury, retweeting the post and adding his observation that “Even Michael Moore agrees that the Dems and Mueller blew it!” Mueller, 74, appeared reluctant to take the gloves off as he sat for hours in hearings before two House panels, often sounding dispassionate and unsteady.

At times lawyerly and assured, he was also dull and sluggish, declining to stray beyond the confines of his report or to push back aggressively on his Republican questioners and light the fireworks that several Democrats no doubt had been looking for. “Trump must be gloating in ecstasy,” tweeted Moore, director of films like “Bowling for Columbine” and “Roger & Me.” “Not because of the failure that is Robert Mueller — his Report is still a damning document of crimes by Trump — but because Trump understands the power of the visual, and he understands that the Dems aren’t street fighters and that’s why he’ll win.”

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If the Dems wouldn’t waste so much time and credility with Russiagate, they could protest this. And sure, Pelosi tries, but they are not a believable anti-war party.

Donald Trump Vetoes Bills Prohibiting Arms Sales To Saudi Arabia (AP)

Donald Trump has vetoed a trio of congressional resolutions aimed at blocking his administration from selling billions of dollars of weapons to Saudi Arabia and the United Arab Emirates. The secretary of state, Mike Pompeo, last month cited threats from Iran as a reason to approve the $8.1bn arms sale to the two US allies in the Gulf. Saudi Arabia is an enemy of Iran and tension has mounted between the UAE and Tehran over several issues, including the UAE’s coordination with US efforts to curb what it calls Iran’s malign activities in the region. But Trump’s decision in May to sell the weapons in a way that would have bypassed congressional review infuriated lawmakers. In a pushback to Trump’s foreign policy, Democrats and Republicans banded together to pass resolutions to block the weapons sale.


The White House had argued that stopping the sale would send a signal that the US did not stand by its partners and allies, particularly at a time when threats against them were increasing. The arms package included thousands of precision-guided munitions, other bombs and ammunition and aircraft maintenance support. Anger has been mounting in Congress over the Trump administration’s close ties to the Saudis, fuelled by the high civilian casualties in the Saudi-led war in Yemen – a military campaign the US is assisting – and the killing of the US-based columnist Jamal Khashoggi by Saudi agents. Trump’s decision in May to sell the weapons further inflamed the tensions. “The president’s shameful veto tramples over the will of the bipartisan, bicameral Congress and perpetuates his administration’s involvement in the horrific conflict in Yemen, which is a stain on the conscience of the world,” the House speaker, Nancy Pelosi, said in a statement.

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Let’s start a casino and call it a market.

Nothing Matters: It’s Like the Whole Market Has Gone Nuts (WS)

You see, Tesla is different. It just reported another doozie, a loss of $408 million in the second quarter, after its $702 million loss in the first quarter, for a total loss in the first half of $1.1 billion. In its 14-year history, it has never generated an annual profit. It has real and popular products and surging sales, but it subsidizes each of those sales with investor money. And here’s where it’s different this time: investors don’t care. They dig how the company has been consistently overpromising and underdelivering. They dig the chaos at the top. They dig everything that should scare them off.

Yeah, its shares plunged 11% afterhours today, but that takes those shares only down to where they’d been on May 1. Big deal. Shares are down 32% from the peak. But their peak should have been a small fraction of that. Even today, the company is still valued at over $40 billion. Tesla lacks a viable business model in the classic sense. Its business model is a new business model of just burning investor cash that it raises via debt and equity offerings on a near-annual basis because investors encourage it to do that, and love it for it, and eagerly hand it more money to burn, and they’re rewarding each other by keeping the share price high. It’s just a game, you see. And nothing else matters.

Then there is Boeing. It just reported the largest quarterly loss in its history of $2.9 billion due to a nearly $5-billion charge related to its newest bestselling all-important 737 Max, two of which crashed, killing 346 people, due to the way the plane is designed. The flight-control software that is supposed to mitigate this design issue is not working properly. And a software fix that is acceptable to regulators remains elusive. The plane has been grounded globally since March. No one, especially not the regulators, can afford a third crash. So today, Boeing announced that it may further cut production of the plane or suspend it altogether if the delays continue to drag out. This is big enough to start impacting US GDP.

[..] But here we go: From 2013 through Q1 2019, Boeing has blown a mind-boggling $43 billion on share buybacks (buyback data via YCharts): Blowing these $43 billion on share buybacks has caused Boeing to have a “total equity” of a negative $5 billion. In other words, it has $5 billion more in liabilities than in assets. This company is out of wriggle room. If it can’t borrow enough money to make payroll, it’s over.

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Shouldn’t he wait for the DOJ investigation?

Mnuchin Says Amazon ‘Destroyed’ US Retail Sector (R.)

U.S. Treasury Secretary Steven Mnuchin said on Wednesday that online giant Amazon.com Inc “destroyed the retail industry across the United States.” Mnuchin said he looked forward to hearing the results of a Justice Department probe, announced on Tuesday, into whether big U.S. technology firms engage in anticompetitive practices, the strongest sign yet that the Trump administration is stepping up its scrutiny of Big Tech. “If you look at Amazon, although they’re certain benefits to it, they’ve destroyed the retail industry across the United States,” Mnuchin told CNBC. “I don’t have an opinion other than I think it’s absolutely right the attorney general is looking into these issues and I look forward to listening to his recommendations to the president.”


Amazon defended itself, saying that 90% of all sales occur in brick-and-mortar stores. “Today, independent sellers make up more than 58% of physical gross merchandise sales on Amazon, and their sales have grown twice as fast as our own, totaling $160 billion in 2018,” a spokesman for Amazon said. A Justice Department spokesman declined to say on Tuesday which companies it would scrutinize under the antitrust probe, but said the review would consider concerns raised about “search, social media, and some retail services online” – an apparent reference to Google, Amazon, Facebook, and potentially Apple.

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No more parking spaces left.

Boeing Says It Could Halt Production Of 737 Max After Grounding (G.)

Boeing said it could halt production of the 737 Max jet on Wednesday as it reported the company’s largest ever quarterly loss following two fatal accidents involving the plane. The company lost $2.9bn in the three months to the end of June, compared to a profit of $2.2bn for the same period last year. Sales fell 35% to $15.8bn. Chief executive Dennis Muilenburg said production of the plane could be slowed or halted if regulators do not move to lift the ban on the plane. The 737 Max was Boeing’s best selling aircraft until the fleet was grounded worldwide in March following crashes in Indonesia and Ethiopia. In January Boeing’s executives said the Max was the fastest selling plane in its history and the company expected to deliver between 895 and 905 airplanes this year.


Now it has become the most costly plane in Boeing’s history. Boeing has predicted that the Max will be flying again by the end of the year, but this month the Wall Street Journal reported that government and industry officials believe a return date of January 2020 is more likely. On a call with analysts Muilenburg said the company may have to consider slowing or halting production if there are further delays in getting the plane back into the skies. Boeing is still producing 42 of its 737 jets a month and plans to boost that rate to 57 next year. But if there are further setbacks, Muilenberg said: “We might need to consider possible further rate reductions or other options including a temporary shutdown of the Max production.”

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It got him out of jail…

Jeffrey Epstein Found Injured In Jail Cell (R.)

Jeffrey Epstein, the financier facing charges of sex trafficking involving dozens of underage girls, was found unconscious in a Manhattan jail cell with injuries to his neck, media reported late on Wednesday, citing unidentified sources. Epstein was found by guards sprawled on the floor of cell at the Metropolitan Correctional Center on Wednesday, media reported. Some media reported that his face appeared blue. The billionaire financier was taken to hospital, the New York Post reported, but it was unclear where he was taken or what his condition was. It was not clear how he suffered his injuries. Epstein was recently denied bail, a move his lawyers plan to appeal according to a court notice made public on Tuesday.


Epstein was expected to ask the 2nd U.S. Circuit Court of Appeals to overturn the judge’s July 18 rejection of his request to remain under house arrest in his $77 million mansion on Manhattan’s Upper East Side. Epstein has pleaded not guilty to the charges and the appeal for bail was expected. His lawyer Reid Weingarten did not immediately respond to requests for comment. A spokesman for U.S. Attorney Geoffrey Berman in Manhattan declined to comment. The charges, concerning alleged misconduct from at least 2002 to 2005, were announced more than a decade after Epstein pleaded guilty to state prostitution charges in Florida. In denying him bail, U.S. District Judge Richard Berman in Manhattan said the government had shown by clear and convincing evidence that Epstein would pose a danger to the community if released pending trial.

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Impressive.

Embattled Governor Of Puerto Rico Resigns After Protests (AFP)

Puerto Rico’s embattled governor Ricardo Rossello announced his resignation late Wednesday following two weeks of massive protests triggered by the release of a chat exchange in which he and others mocked gays, women and hurricane victims. “I announce that I will be resigning from the governor’s post effective Friday, August 2 at 5 pm,” Rossello said, in a video statement posted on the government’s Facebook page. As soon as the video ended, a joyous commotion and cries of “ole ole ole” were heard from protesters who had rallied since the afternoon at the gates of the governor’s mansion.


“I trust that Puerto Rico will continue united and move forward as it always has,” Rossello said. “And I hope that this decision will serve as a call for citizen reconciliation.” Rossello said that Justice Secretary Wanda Vazquez would temporarily succeed him. Puerto Ricans had waited expectantly for the announcement throughout the day, as rumors of the governor’s forthcoming resignation swirled.

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Christine Lagarde is stuck even before she takes the job. There is no way out of ultra-low rates.

With Finger On Trigger, ECB Aims At More Stimulus (R.)

The European Central Bank is all but certain to ease policy further on Thursday, with the biggest question whether it staggers its moves over several months or opts for a big bang. With inflation stuck well below its target and the U.S. Federal Reserve already in easing mode, the ECB has flagged more stimulus, hoping to prop up confidence amid a steady flow of bad news that threatens to unravel years of unprecedented support. It could cut interest rates, perhaps while also helping banks offset the costs to them, restart a recently shuttered bond-buying program or raise the bar for any future tightening of monetary policy.


But with economic data relatively stable there is little urgency to deliver a comprehensive package this week, suggesting the ECB could take its time to prepare the measures and wait for the Fed to set its own course. This will be crucial for determining the euro’s exchange rate against the dollar, presently the single most-watched variable for ECB policymakers. Having stoked easing expectations already, ECB President Mario Draghi will have to deliver at least something on Thursday. If nothing else, he is likely to unveil revamped interest rate guidance that makes it clear a rate cut is coming and that rates will stay at record lows for much longer than the ECB had previously expected.

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As I said: all they can do is to prolong the agony.

Deutsche Bank Faces A -Much- Smaller, Poorer Future (Coppola)

Deutsche Bank has issued its results for the second quarter of 2019. They make grim reading. The bank reported a headline loss of €3.1bn ($3.44bn), which it said was due to “charges relating to strategic transformation” of €3.4bn ($3.78bn). But both net income of £231m ($256.67m) and underlying profits of €441m ($490m) were significantly down on the same quarter in 2018. The restructuring announced earlier this month has yet to impact fully. The “capital release unit” into which the bank plans to put €74bn ($82.22bn) of poorly-performing and non-strategic assets and business lines, including its entire equities trading division, is not yet up and running, and although headcount is about 4,500 lower than it was a year ago, the latest round of sackings doesn’t yet show up in the redundancy costs.


Restructuring costs themselves therefore only contribute €50m ($55.56m) to the headline loss. A further €350m ($388.89m) comes from junking software and service contracts that will no longer be needed because of the restructuring. But by far the largest part of the headline loss arises from impairment of goodwill to the tune of €1bn ($1.11bn) and a €2bn ($2.22bn) reduction in the value of the bank’s deferred tax asset. This may sound like accounting gobbledegook, but it sends a very important message. Deutsche Bank’s management has admitted the bank will never return to the profitability of the past. When the restructuring is complete, it will be a much smaller, poorer bank.

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Let’s end with something positive.

California Condor Comes Back From The Dead (NPR)

The California condor, North America’s largest bird, once ruled the American Southwest and California’s coastal mountains. The vulture-like bird was revered by Native Americans and was believed to contain spiritual powers. Hundreds of years later, its future seemed all but certain. Defying odds, conservation efforts brought the species back and prevented it from joining the dodo in extinction. Now, condor reintroduction celebrates a milestone: Chick No. 1,000 has hatched. In the 1980s, fewer than two dozen condors were left in the world. Conservationists rounded up the remaining condors and began breeding them in captivity.

According to the International Union for Conservation of Nature, the condor became critically endangered in the 20th century — one classification behind extinct in the wild. The decline came from poaching, habitat destruction and lead poisoning as condors scavenged for carrion containing lead shots. Today, more than 300 California condors exist in the wild. Including captivity breeding programs, there are more than 500 in the world, says Tim Hauck, the condor program manager at the Peregrine Fund.

The 1,000th successful birth signifies an optimistic future for the condor recovery mission. “We’re seeing more chicks born in the wild than we ever have before,” Hauck told NPR’s Scott Simon. “And that’s just a step towards success for the condor and achieving a sustainable population.” The hatchling is currently in Zion National Park — it emerged from its shell in May, but its survival was just confirmed in July. The chick, whose sex cannot be identified without a blood test, will be ready to fledge — or take flight — for the first time in November. If the chick successfully leaves the nest, it can expect to grow up to have a 10-foot wingspan. The bird’s average lifespan is 60 years, one of the world’s longest-living bird species.


Photo by National Park Service – AP

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Jul 242019
 
 July 24, 2019  Posted by at 9:04 am Finance Tagged with: , , , , , , , , , , , ,  13 Responses »


Pablo Picasso Marie-Thérèse Walter 1937

 

Mueller In Last-Minute Request For Aide To Be With Him During Testimony (NBC)
Questions for Mueller (Aaron Maté)
Robert Mueller, The ‘Magician Of Omission’ On Russia (Solomon)
Mueller Deputy Andrew Weissmann’s Offer To An Oligarch Could Hurt DOJ (Solomon)
The Clown Is Crowned As The Country Burns In Hell (G.)
Deutsche Bank’s Problem Derivatives Cloud Recovery (R.)
Deutsche Bank Flagged Epstein’s Overseas Transactions To US Watchdog (CNBC)
Berkeley First US City To Ban Natural Gas (G.)
Libra Scams Are Already Popping Up On Facebook (F.)
Big Tech Faces Broad US Justice Department Antitrust Probe (R.)
MH17 Evidence Tampering Revealed by Malaysia (John Helmer)
Ralph Nader Says Boeing 737 Max Should Never Fly Again (CNBC)

 

 

From what I understand Zebley will be sworn in for the Intelligence Committe part, the last part, but not the Judiciary Committee, the first 3 hours. Hints at them knowing at least some of what’s going to be asked.

Mueller In Last-Minute Request For Aide To Be With Him During Testimony (NBC)

One of former special counsel Robert Mueller’s longtime aides will appear alongside him during his highly-anticipated testimony before the House Judiciary Committee, a spokesperson said Tuesday, but is not expected to be sworn in. Mueller’s team made a last-minute request that Aaron Zebley be sworn in and testify with him during his scheduled hearings before Congress on Wednesday, a congressional source familiar with the request told NBC News. Mueller is slated to testify on his report into Russian interference in the 2016 election and the country’s influence on President Donald Trump for three hours before the House Judiciary Committee, take a break, then appear for at least two additional hours before the House Intelligence Committee.

For the first hearing, Zebley will sit alongside Mueller as his counsel, according to the Judiciary Committee spokesperson. The committee, however, is not updating its guidance to include Zebley as a witness. This means that Zebley will not be sworn in. Mueller can confer with him as he is questioned by the panel, according to committee rules, but cannot answer questions. The ranking Republican on the Judiciary Committee, Rep. Doug Collins of Georgia, said Tuesday that GOP members had “not gotten assurances from the House Democrats on the committee that he [Zebley] will not speak.”

“He’s not supposed to speak in that role to anyone on the committee or asked questions. And we’re asking, and, frankly, that that be confirmed before the hearing. So we don’t have to waste time with it tomorrow,” Collins said. Jim Popkin, Mueller’s spokesperson, disputed the idea that Zebley’s presence at the hearings amounted to an 11th-hour addition. “Aaron Zebley was the Deputy Special Counsel and had day-to-day oversight of the investigations conducted by the Office,” Popkin said in a statement Tuesday. “He will accompany Special Counsel Mueller to the Wednesday hearings, as was discussed with the committees more than a week ago.”

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Mueller’s people asked Barr for guidance on what he can talk about. Wonder how many times they will refer to that guidance when not answering questions. Sort of like taking the fifth.

Questions for Mueller (Aaron Maté)

”For two years, Democrats have waited on Robert Mueller to deliver a death blow to the Trump presidency,” The New York Times observed on July 20. “On Wednesday, in back-to-back hearings with the former special counsel, that wish could face its final make-or-break moment.” The very fact that Democrats had to subpoena Mueller in order to create this final moment should in fact be the final reminder of what a mistake it was for Democrats to have waited on him. If Mueller had incriminating information yet to share, or had been stymied from doing his work, or if Attorney General William Barr had somehow misrepresented his findings, then it stands to reason that Mueller would be welcoming the opportunity to appear before Congress, not resisting it.


The reality is that Mueller’s investigation did not indict anyone on the Trump campaign for collusion with Russia, or even for anything related to the 2016 election. Mueller’s report found no evidence of a Trump-Russia conspiracy, and even undermined the case for it. That said, there are unresolved matters that Mueller’s testimony could help clarify. Mueller claimed to have established that the Russian government conducted “a sweeping and systematic” interference campaign in order to elect Trump, yet the contents of his report don’t support that allegation. The Mueller report repeatedly excludes countervailing information in order to suggest, misleadingly, that the Trump campaign had suspect “links” and “ties” to people connected with Russia. And Mueller and other intelligence officials involved in the Russia probe made questionable investigative decisions that are worthy of scrutiny.

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Horowitz has to finish his report first before Durham can do anything. Today’s hearings are far from the last thing on the topic.

Robert Mueller, The ‘Magician Of Omission’ On Russia (Solomon)

While most of the political world focused its attention elsewhere, special prosecutor John Durham’s team quietly reached out this summer to a lawyer representing European academic Joseph Mifsud, one of the earliest and most mysterious figures in the now closed Russia-collusion case. An investigator told Swiss attorney Stephan Roh that Durham’s team wanted to interview Mifsud, or at the very least review a recorded deposition the professor gave in summer 2018 about his role in the drama involving Donald Trump, Russia and the 2016 election. The contact, confirmed by multiple sources and contemporaneous email, sent an unmistakable message:


Durham, the U.S. attorney handpicked by Attorney General William Barr to determine whether the FBI committed abuses during the Russia investigation, is taking a second look at one of the noteworthy figures and the conclusions of former special counsel Robert Mueller’s final report. The evidence I reviewed suggests Mueller’s handiwork may be exposed for glaring omissions that, when brought to public light, leave key questions unanswered, especially about how the FBI’s unprecedented probe of the Trump campaign started. Durham is focused on determining whether any government or private figures who came in contact with the Trump campaign in 2016 “were engaged in improper surveillance,” a U.S. official told me when asked about the Mifsud overture.

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Is someone going to question Weismann at some point?

Mueller Deputy Andrew Weissmann’s Offer To An Oligarch Could Hurt DOJ (Solomon)

At the time, pressure was building inside the DOJ and the FBI to find smoking-gun evidence against Trump in the Russia case because the Steele dossier — upon which the early surveillance warrants were based — was turning out to be an uncorroborated mess. (“There’s no big there there,” lead FBI agent Pete Strzok texted a few days before Weissmann’s overture.) Likewise, key evidence that the DOJ used to indict Firtash on corruption charges in 2014 was falling apart. Two central witnesses were in the process of recanting testimony, and a document the FBI portrayed as bribery evidence inside Firtash’s company was exposed as a hypothetical slide from an American consultant’s PowerPoint presentation, according to court records I reviewed.

In other words, the DOJ faced potential embarrassment in two high-profile cases when Weissmann made an unsolicited approach on June 4, 2017, that surprised even Firtash’s U.S. legal team. To some, the offer smacked of being desperately premature. Mueller was appointed just two weeks earlier, did not even have a full staff selected, and was still getting up to speed on the details of the investigation. So why rush to make a deal when the prosecution team still was being selected, some wondered. Second, Weissmann’s approach was audaciously aggressive, even for a prosecutor with his reputation.

According to a defense memo recounting Weissmann’s contacts, the prosecutor claimed the Mueller team could “resolve the Firtash case” in Chicago and neither the DOJ nor the Chicago U.S. Attorney’s Office “could interfere with or prevent a solution,” including withdrawing all charges. “The complete dropping of the proceedings … was doubtless on the table,” according to the defense memo.

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“So we beat on, against the sun, borne back ceaselessly into hell.”

The Clown Is Crowned As The Country Burns In Hell (G.)

Well, here we are then. Someone who could easily be rejected as a Guess Who character for looking too ridiculous is now to lead the country. A man whose DNA profile is the exact same as a Bernard Manning joke. A man who mentioned the 20 hustings he had taken part in, approximately 30 seconds after Conservative party chairman Brandon Lewis talked of the 16 hustings held. With 8,000 members of the Johnson family watching on – and Jeremy Hunt, looking for all the world like a sub who’s never gonna get off the bench and knows it – Boris Johnson was announced as the new leader of the Conservative party, and, in short order, the new prime minister. Elected by a staggering 0.2% of the nation, we can’t say it isn’t the will of the people.

It’s quite extraordinary, isn’t it, when the new leader of the country opens his inaugural speech with: “There may be people here who wonder quite what they have done!” – having to address the fact that many people in the room are coming to terms with the fact they’ve got shit on their shoe. “Do you look daunted?!” he boomed, “You don’t look remotely daunted to me!” Which was met with a Spectoresque wall of silence, a number of faces as white as Elizabeth I’s, and a solitary cry of: “No!”.

[..] I don’t really know what to say myself. I don’t understand how a man can lie his way about bananas and condoms to high office. I don’t understand how a man whose entire prep for anything seems to consist of drawing a cock and balls – but in Latin! – on a sheet of paper, ends up in high office. I don’t understand how a man can be recorded offering to facilitate the assault of a journalist and reach high office. I don’t understand how a man can be fired twice for cavalierly making stuff up and reach high office. I don’t understand how a man whose entire personality is a job-lot sold off from a closing down joke shop can reach high office. A racist, an inveterate liar, a man who makes Machiavelli look misunderstood and Pinocchio button-nosed. It’s 33C outside in London. You can’t tell whether people are crying or sweating. We can’t do anything until we get a say – which, this time, we did not. So we beat on, against the sun, borne back ceaselessly into hell.

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There will not be a recovery. The only thing they can so is prolong the agony.

Deutsche Bank’s Problem Derivatives Cloud Recovery (R.)

Deutsche Bank’s turnaround strategy rests in large part on shedding 288 billion euros of unwanted assets. Three bank insiders said it will take years, tying up capital that could have generated income of 500 million euros ($557 million) a year. The opportunity cost of holding the assets, which has not been previously reported, underscores the challenges facing Chief Executive Christian Sewing as he attempts to turn around the bank and restore confidence among investors who have seen the value of their shares decline by 75% in the past four years. Sewing said earlier this month that Deutsche, Germany’s largest lender, would set up a bad bank to house the assets, which include equity, credit and interest-rate derivatives.


The bank said it wants to offload most of its derivatives by 2020. Executives managing the book can either sell positions or allow them to gradually wind down over time, depending on which is more profitable. The bank is planning an auction of its short-dated equity derivatives book, having already received “significant expressions of interest,” the sources familiar with the matter said. However, its long-dated interest rate and credit derivatives are expected to be much harder to offload, the sources said. Deutsche Bank has held on-and-off talks with potential buyers of some of those assets over the past two years, three people said. The sales did not happen because the prices offered would have resulted in hundreds of millions of euros in losses for the bank, they said.

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What, laundering as well?

Deutsche Bank Flagged Epstein’s Overseas Transactions To US Watchdog (CNBC)

Deutsche Bank notified U.S. financial watchdogs about suspicious transactions by accused child sex trafficker Jeffrey Epstein — a customer of the bank — according to a new report Tuesday. The transactions, which involved Epstein moving money out of the United States, were flagged after Deutsche Bank discovered them while looking for indications that the wealthy financier was using his money for sex trafficking, The New York Times reported. Epstein had been a client of Deutsche Bank’s private banking division since at least 2013, five years after he pleaded guilty to prostitution-related charges involving a teenage girl filed by Florida state prosecutors, the Times noted.


That guilty plea led to Epstein — a former friend of Presidents Donald Trump and Bill Clinton — being required to register as a sex offender. According to the new article, an anti-money laundering compliance officer in Deutsche Bank’s office in New York and Florida raised concerns about the bank’s relationship with Epstein in 2015 and 2016. Those officers also reportedly put together a suspicious activity report on potentially illegal activity in an Epstein account at the time, which had moved money outside of the U.S. The Times said it was not clear if that report was ever filed with the financial crimes division of the U.S. Treasury Department. But the latest suspicious transactions were reported this year, according to the article.

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But but.

Berkeley First US City To Ban Natural Gas (G.)

Berkeley this week became the first city in the United States to ban natural, fossil gas hook-ups in new buildings. The landmark ordinance was passed into law on Tuesday, after being approved unanimously by the city council the previous week amid resounding public support. Although Berkeley may be pushing the vanguard, the city is hardly alone. Governments across the US and Europe are looking at strategies to phase out gas. In California alone, dozens of cities and counties are considering eliminating fossil fuel hook-ups to power stoves and heat homes in new buildings, while California state agencies pencil out new rules and regulations that would slash emissions. Natural gas, it seems, has become the new climate crisis frontline. Berkeley’s ordinance, which goes into effect on 1 January, will ban gas hook-ups in new multi-family construction, with some allowances for first-floor retail and certain types of large structures.


The reasons behind the decision are multifold. Energy use in buildings accounts for about 25% of greenhouse gas emissions in California. If the state is to meet its goal of 100% zero-carbon energy by 2045, the gas will have to go. For decades, gas was considered among the preferred energy sources for buildings and embraced as a bridge from dirtier fossil fuels to a green energy future. “There’s been a lingering perception that burning gas was cleaner than electricity, which might have been true 20 years ago when electricity came from burning coal,” said Pierre Delforge, a senior scientist with the Natural Resources Defense Council . “When we look at electrification policies, we need to think about what the grid will look like in 10 or 20 years, not what it looked like yesterday.”

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Not the Onion.

Libra Scams Are Already Popping Up On Facebook (F.)

As Facebook faces skepticism from regulators that it can handle launching its cryptocurrency Libra, a raft of fake accounts and scams purporting to sell Libra have cropped up on its own platform, according to the Washington Post. At least a dozen fake pages and websites on Facebook and Instagram claim to be associated with Facebook’s Libra, which has yet to be officially launched. One video offered a discount on Libra coins that have been distributed to early investors. Another linked to a realistic-looking fake website called “buylibracoins.com.” The website remains online. The scams even spread to YouTube and Twitter, according to the Washington Post. Facebook says Libra will allow people to send money to each other without a traditional middleman, such as a bank.


A digital wallet, called Calibra, will also be available as a stand-alone app on Facebook Messenger and WhatsApp. A Facebook spokesperson told Forbes that it “removes ads and Pages that violate our policies when we become aware of them, and we are constantly working to improve detection of scams on our platforms.” Key Background: In 2018, Facebook banned advertisements involving cryptocurrency or initial coin offerings to combat the proliferation of scams and bogus ICOs cropping up as the price of Bitcoin soared. Over the last few months, Facebook has been softening the ban in the run up to the announcement of Libra—and it appears scammers are taking advantage. Libra scams may not help Facebook convince lawmakers and regulators that it can protect user privacy and prevent the digital currency from being used in criminal activity.

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I’ll believe it when I see it. Because Big Tech=CIA.

Big Tech Faces Broad US Justice Department Antitrust Probe (R.)

The U.S. Justice Department said on Tuesday it was opening a broad investigation of major digital technology firms into whether they engage in anticompetitive practices, the strongest sign the Trump administration is stepping up its scrutiny of Big Tech. The review will look into “whether and how market-leading online platforms have achieved market power and are engaging in practices that have reduced competition, stifled innovation, or otherwise harmed consumers,” the Justice Department said in a statement. The Justice Department did not identify specific companies but said the review would consider concerns raised about “search, social media, and some retail services online” — an apparent reference to Alphabet Inc, Amazon.com Inc and Facebook Inc, and potentially Apple Inc.


[..] The announcement comes a day before the Federal Trade Commission is set to announce a $5 billion penalty to Facebook for failing to properly protect user privacy. Senator Richard Blumenthal, a Democrat, said the Justice Department “must now be bold and fearless in stopping Big Tech’s misuse of its monopolistic power. Too long absent and apathetic, enforcers now must prevent privacy abuse, anticompetitive tactics, innovation roadblocks, and other hallmarks of excessive market power.” In June, Reuters reported the Trump administration was gearing up to investigate whether Amazon, Apple, Facebook and Alphabet’s Google misuse their massive market power, setting up what could be an unprecedented, wide-ranging probe of some of the world’s largest companies.

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The FBI tried to steal the black boxes, but Malaysian secret service had already ‘smuggled’ agents into the Donbass ahead of other countries. Oh, and literally everybody has been caught lying. What a story this is becoming,

MH17 Evidence Tampering Revealed by Malaysia (John Helmer)

A new documentary from Max van der Werff, the leading independent investigator of the Malaysia Airlines Flight MH17 disaster, has revealed breakthrough evidence of tampering and forging of prosecution materials; suppression of Ukrainian Air Force radar tapes; and lying by the Dutch, Ukrainian, US and Australian governments. An attempt by agents of the FBI to take possession of the black boxes of the downed aircraft is also revealed by a Malaysian National Security Council official for the first time. The sources of the breakthrough are Malaysian — Prime Minister of Malaysia Mohamad Mahathir; Colonel Mohamad Sakri, the officer in charge of the MH17 investigation for the Prime Minister’s Department and Malaysia’s National Security Council following the crash on July 17, 2014; and a forensic analysis by Malaysia’s OG IT Forensic Services of Ukrainian Secret Service (SBU) telephone tapes which Dutch prosecutors have announced as genuine.

The 298 casualties of MH17 included 192 Dutch; 44 Malaysians; 27 Australians; 15 Indonesians. The nationality counts vary because the airline manifest does not identify dual nationals of Australia, the UK, and the US. The new film throws the full weight of the Malaysian Government, one of the five members of the Joint Investigation Team (JIT), against the published findings and the recent indictment of Russian suspects reported by the Dutch officials in charge of the JIT; in addition to Malaysia and The Netherlands, the members of the JIT are Australia, Ukraine and Belgium. Malaysia’s exclusion from the JIT at the outset, and Belgium’s inclusion (4 Belgian nationals were listed on the MH17 passenger manifest), have never been explained.


The film reveals the Malaysian Government’s evidence for judging the JIT’s witness testimony, photographs, video clips, and telephone tapes to have been manipulated by the Ukrainian Security Service (SBU), and to be inadmissible in a criminal prosecution in a Malaysian or other national or international court. For the first time also, the Malaysian Government reveals how it got in the way of attempts the US was organizing during the first week after the crash to launch a NATO military attack on eastern Ukraine. The cover story for that was to rescue the plane, passenger bodies, and evidence of what had caused the crash. In fact, the operation was aimed at defeating the separatist movements in the Donbass, and to move against Russian-held Crimea. The new film reveals that a secret Malaysian military operation took custody of the MH17 black boxes on July 22, preventing the US and Ukraine from seizing them. The Malaysian operation, revealed in the film by the Malaysian Army colonel who led it, eliminated the evidence for the camouflage story, reinforcing the German Government’s opposition to the armed attack, and forcing the Dutch to call off the invasion on July 27.

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Not the first time he’s said it, but this time it’s directly to the FAA.

Ralph Nader Says Boeing 737 Max Should Never Fly Again (CNBC)

Consumer advocate Ralph Nader on Tuesday urged the Federal Aviation Administration to permanently ground Boeing’s 737 Max jet. “The plane cannot be refixed,” said Nader, whose grandniece was killed in a March crash of a 737 Max jet in Ethiopia. “It has to be recalled” and permanently taken out of service, he said. Regulators worldwide ordered airlines to ground their 737 Max planes in mid-March after the crash in Ethiopia and one in Indonesia that occurred within five months of one another, killing a total of 346 people. Since then, Boeing has been preparing to get the Max back in the air. Airlines have canceled thousands of flights due to the grounding and are planning to do so until at least November, a move that Boeing said it took a $4.9 billion charge for in its second quarter.


But the planemaker needs to “take their losses” on the jet, Nader said in an interview with CNBC’s “Squawk on the Street.” Crash investigators have pointed to an issue with the jets’ software, for which Boeing said it has developed a fix, as the cause behind the two fatal crashes. But once a software upgrade is submitted to the FAA, it will likely take at least another month before the planes are back in operation. On the software fix, Nader said it shouldn’t be trusted since executives are “stuck in their bad decision” and are “ignoring preventable aerodynamic design.” “It’s a new plane; they can’t say it’s just a little bit changed,” he said. “It needs full certification.”

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Jul 122019
 


Jack Delano Rebuilt Chicago and North Western Railroad caboose at the Proviso yard in Chicago 1943

 

Making Banking Boring Again: The Decline Of Deutsche Bank (NS)
The Parable of Deutsche Bank and Investment Banking (Wright)
Bank Of England Warns Of Lending Crisis For EU Firms After No-Deal Brexit (G.)
Epstein Sold ‘Lolita Express’ Weeks Before Arrest (ZH)
Did Pedophile Jeffrey Epstein Work for Mossad? (Giraldi)
AOC on the 2020 Presidential Race and Trump’s Crisis at the Border (NYer)
Guardian Publishes, Then Censors Jewish Open Letter Defending Labour MP (GZ)
BBC Panorama’s Hatchet Job On Labour Antisemitism (Cook)
Bitcoin Extends Losses After Fed Chief Urges Halt To Facebook’s Libra (R.)
Japan Crypto Exchange Says $32 Million Missing In Hack (AFP)
Iran Calls On Britain To Release Seized Oil Tanker Immediately (R.)
Greek Growth Expected To Recover In The Second Half Of The Year (K.)

 

 

“If Deutsche falls, it could pull many other European banks down with it.” And American banks too.

Making Banking Boring Again: The Decline Of Deutsche Bank (NS)

There once was a time when Deutsche Bank’s central purpose was to expand its investment banking operations to compete with its American counterparts. On Sunday (7 July), its CEO declared those “days of spectacular ambition” over, announcing a major restructuring in a last attempt to save the bank from collapse. In a decade of decline for the once-great European investment banks, Deutsche has fared particularly badly. In the aftermath of the financial crash, it refused a German government bailout. Regulators have since discovered it was only able to do so by fiddling its books, earning it a large fine from the US Securities and Exchange Commission. The bank has remained fragile. The IMF called it the “most important net contributor to systemic risks in the global banking system”.


If Deutsche falls, it could pull many other European banks down with it. It has also been breaking rules in pursuit of a return to profitability. It earned big post-crisis fines for its role in the Libor rigging scandal, for laundering Russian money, and for violating US sanctions against a string of countries. The bank’s share price has fallen to below €7, from a pre-crisis peak of €112. The scale of its restructuring has shocked many analysts. Having already squeezed shareholders for huge amounts of capital, Deutsche aims to pay for it by cutting costs. Eighteen thousand jobs will be lost worldwide and the bank will shift away from expensive investment banking and return to its “traditional strengths” in corporate banking.

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Quite obvious what went wrong.

The Parable of Deutsche Bank and Investment Banking (Wright)

I first started writing about Deutsche Bank in the mid-1990s as a cub reporter on a City trade paper and this week’s news made me feel quite nostalgic. My first interview as a reporter in 1996 was on an empty trading floor in the City with someone called Edson Mitchell – the uber-trader hired by Deutsche Bank in 1995 to spearhead its ambitious project. He patiently explained to a clueless reporter why the bank was hiring 500 traders and what they would soon be doing. My first front page splash a few months later was that Deutsche Bank had hired the entire Latin American equities team of about 70 people from ING Barings. Why bother building a business from the bottom up when you can just buy the people from another firm that has already done so?

Those early moves were repeated many times over. You want to build the best trading business? Hire a huge team from Merrill Lynch. You want the best equities and advisory business? Take the best team on the street from SG Warburg. In the early days of the Deutsche Bank project it had the culture of an ambitious start-up: hire large teams of very good people, pay them a ton of money, focus on revenues, scale and market share – and eventually the profits will follow. Throw in as much leverage as your balance sheet can bear, and the numbers started adding up pretty quickly. It was a simple and successful formula. Soon Deutsche Bank graduated from hiring teams to buying entire firms: its acquisition of Bankers Trust in 1998 for $10bn – the biggest ever attempt by a European bank to break into the US market – briefly made it the biggest bank in the world in terms of assets.

It snapped up Scudder Investments a few years later, and Russian investment bank UFG a few years after that. The danger was that this ambitious start-up culture became the de facto culture of the investment bank. As a business model it worked when regulators around the world were more generous with how much leverage banks could have and when everyone was printing money in the years running up to the financial crisis. In 2007 the investment bank at Deutsche generated a shade under €20bn in revenues of a balance sheet that was just shy of €2 trillion. Two thirds of that revenue came from its huge sales and trading business. Pretax profits topped €5bn and its return on equity – a measure of profitability – was just under 20%. The Deutsche Bank project had worked.

The problem with this culture and business model – or rather, collection of businesses that had been rammed together over the previous decade – was that when the music stopped in 2008 it left Deutsche Bank with a huge and unproductive balance sheet, a cost-base that was nowhere near as flexible as it should have been, and a toxic culture in which many people’s expectation of how much they should be paid had become disconnected from the reality of the day-to-day business.

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“Britain has enabled UK companies banking with EU institutions located in Britain to keep on trading in the same way, even in a no-deal scenario, under special rules legislated for by the government. However, Brussels has not taken similar steps, the Bank warned.”

Bank Of England Warns Of Lending Crisis For EU Firms After No-Deal Brexit (G.)

The Bank of England has warned that a no-deal Brexit could trigger a material shock to the UK economy while causing widespread disruption for EU companies by cutting them off from London-based banks. Stating that the risk of Britain crashing out without a deal had risen, the Bank said the City of London was ready to withstand such a scenario and avoid banks failing, as they did in the financial crisis. However, there would still be major disruption for companies. Mark Carney, the Bank’s governor, said: “The perceived likelihood of no-deal Brexit has increased since last year. Although the degree of preparedness for such a scenario has improved, material risks still remain.”

He said the absence of further action by Brussels to get ready for Brexit could leave the door open to disruption for banks and their customers in the EU, while warning that the UK would face “material economic disruption” from a no-deal departure. “Although such disruption would primarily affect EU households and businesses, it could amplify volatility and spill back to the UK in ways that cannot be fully anticipated or mitigated,” he said. Against the backdrop of a rising threat of a no-deal Brexit, the central bank used its twice yearly financial stability report to say that UK, EU and international banks operating in London had made progress planning for a disorderly departure.

However, it warned that about half of EU companies using banks registered in Britain could be cut off from their banking services after the Halloween Brexit date, as they had yet to fully prepare. Britain has enabled UK companies banking with EU institutions located in Britain to keep on trading in the same way, even in a no-deal scenario, under special rules legislated for by the government. However, Brussels has not taken similar steps, the Bank warned.

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If they let him out on bail there’ll be riots.

Epstein Sold ‘Lolita Express’ Weeks Before Arrest (ZH)

A curious footnote has appeared in a court filing by Jeffrey Epstein’s attorneys suggesting that the registered sex offender sold his infamous Boeing 727-200 weeks before his Satuday arrest on suspicion of sex-trafficking minors. While arguing for why Epstein should be allowed to remain under house arrest pending trial, his attorneys made the case that the wealthy financier would “deregister or otherwise ground his private jet,” with the footnote reading “Mr. Epstein owns one private jet. He sold the other jet in June 2019,” placing the sale just weeks before his July 6 arrest upon his return from Paris in his Gulfstream G550 according to Bloomberg.

In other words, it looks like the financier unloaded the potentially ‘evidence-rich’ aircraft – said to have had a bed installed where passengers reportedly had group sex with young girls – right before the hammer came down. According to investigative journalist Conchita Sarnoff – who first revealed the former president’s extensive flights on Epstein’s “lolita express” in a 2010 Daily Beast exposé – former president Bill Clinton flew on the ‘lolita express’ no fewer than 27 times.

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Still just a theory. I would be careful with that.

Did Pedophile Jeffrey Epstein Work for Mossad? (Giraldi)

Questions about Epstein’s wealth also suggest a connection with a secretive government agency with deep pockets. The New York Times reports that “Exactly what his money management operation did was cloaked in secrecy, as were most of the names of whomever he did it for. He claimed to work for a number of billionaires, but the only known major client was Leslie Wexner, the billionaire founder of several retail chains, including The Limited.” But whose intelligence service? CIA and the Russian FSB services are obvious candidates, but they would have no particular motive to acquire an agent like Epstein. That leaves Israel, which would have been eager to have a stable of high-level agents of influence in Europe and the United States.

Epstein’s contact with the Israeli intelligence service may have plausibly come through his associations with Ghislaine Maxwell, who allegedly served as his key procurer of young girls. Ghislaine is the daughter of Robert Maxwell, who died or possibly was assassinated in mysterious circumstances in 1991. Maxwell was an Anglo-Jewish businessman, very cosmopolitan in profile, like Epstein, a multi-millionaire who was very controversial with what were regarded as ongoing ties to Mossad. After his death, he was given a state funeral by Israel in which six serving and former heads of Israeli intelligence listened while Prime Minister Yitzhak Shamir eulogized: “He has done more for Israel than can today be said”

[..] It will be very interesting to see just how far and how deep the investigation into Epstein and his activities goes. One can expect that efforts will be made to protect top politicians like Clinton and Trump and to avoid any examination of a possible Israeli role. That is the normal practice, witness the 9/11 Report and the Mueller investigation, both of which eschewed any inquiry into what Israel might have been up to. But this time, if it was indeed an Israeli operation, it might prove difficult to cover up the story since the pedophile aspect of it has unleashed considerable public anger from all across the political spectrum. Senator Chuck Schumer, self-described as Israel’s “protector” in the Senate, is loudly calling for the resignation of Acosta. He just might change his tune if it turns out that Israel is a major part of the story.

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Yes, the US needs to improve conditions at the border, no doubt about it. But calling it Trump’s crisis while it plays out in Obama facilities is a step too far. At least get some stories about what went on there before January 2017.

And AOC saying Trump called migrants “animals” is simply false. He was referring to MS-13 gang members (see video), and it’s very hard to believe she doesn’t know that. And then he compliments her. Maybe it’s time she pays him a compliment in return. Varoufakis said it very well:

“Come on, wake up! You can not say to Trump voters that they are idiots, and Putin duped them. You can say that, but then that’s it – you lose them forever. And it’s also not true.”
– Yanis Varoufakis

AOC on the 2020 Presidential Race and Trump’s Crisis at the Border (NYer)

So, we walked in and in one of the cells, the cell is just all concrete. There were just women on a concrete floor, and then there were two concrete slabs where they could sit, and then in the back there was a toilet, and a concrete slab in front of the toilet, but no door. And these women were just in these sleeping bags on the floor over each other. There’s no way that they could all sleep at once. Almost no way. And [..] it was, it was the physical manifestation of Trump’s rhetoric in calling migrants animals.


Caption: “[Trump] was responding during a White House event to a point made by a California sheriff about the MS-13 gang, which was started in the 1980s by immigrants from Central America.”

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The UK looks to be dissolving into complete chaos. Corbyn sympathizes with the Palestinians, and this is what happens.

Guardian Publishes, Then Censors Jewish Open Letter Defending Labour MP (GZ)

Britain’s leading newspaper The Guardian, which has relentlessly attacked Jeremy Corbyn and his leftist allies, published but then quickly removed an open letter signed by Noam Chomsky defending Labour MP Chris Williamson from “anti-Semitism” smears. Britain’s leading newspaper The Guardian has censored an open letter published by prominent Jewish intellectuals, writers, and activists that defended leftist Labour Party Member of Parliament Chris Williamson from “anti-Semitism” smears. The Guardian printed, but then quickly removed the letter without explanation. Meanwhile, the paper has refused to retract a wholly discredited article that maligned journalist and political prisoner Julian Assange which has remained on the website for more than seven months.

WikiLeaks says this piece is completely false, and has pledged to sue the newspaper over it. The retracted open letter was a defense of Chris Williamson emphasizing that the socialist and anti-imperialist MP “has a longer record of campaigning against racism and fascism than most of his detractors,” and “stands as we do with the oppressed rather than the oppressor.” Among the more than 100 signatories on the missive are world-renowned intellectual Noam Chomsky, accomplished scholar Norman Finkelstein, anti-war activists Medea Benjamin and Ariel Gold, legal expert and former UN special rapporteur Richard Falk, Holocaust survivors, Israeli dissidents, and leaders of progressive Jewish organizations in the United Kingdom.

Chris Williamson has been a key Corbyn ally in Parliament, advancing a staunchly progressive anti-war and anti-imperialist politics at a time when many Blairite holdovers in the Labour Party are pushing for more aggressive and bellicose policies against Russia, China, Venezuela, Iran, and Syria. Williamson was suspended in February after making comments which were later misrepresented by anti-Corbyn activists. He lamented that the Labour Party, which had “done more to stand up to racism is now being demonised as a racist, bigoted party.” “I’ve got to say I think our party’s response has been partly responsible for that because in my opinion,” the MP added. “We’ve backed off far too much, we’ve given too much ground, we’ve been too apologetic.”

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Britain has a whole bunch of right wing papers, and then there’s the Guardian that has the same agenda phrased slightly differently, and then there’s the BBC. The media environment is perfect for smear jobs. Watch Assange.

There’s no way out anymore.

BBC Panorama’s Hatchet Job On Labour Antisemitism (Cook)

It is difficult to describe as anything other than a hatchet job the BBC Panorama special this week that sought to bolster claims that the Labour Party under Jeremy Corbyn has become “institutionally antisemitic”. The partisan tone was set from the opening shot. A young woman whose name was not revealed tearfully claimed to have been abused with antisemitic taunts at a Labour Party conference. The decision not to disclose the interviewee’s identity is understandable. It would have discredited the whole narrative Panorama was trying so hard to build. The woman’s name is Ella Rose, a senior official in the Jewish Labour Movement (JLM), an organisation representing Jewish and non-Jewish members of Labour at the forefront of attacks on Corbyn.

Rose has a secret past too: she once worked at the Israeli embassy in London. Two years ago she and other JLM officials were exposed collaborating with Shai Masot, an Israeli embassy official. He had to be hurriedly removed from the UK after an undercover Al Jazeera documentary showed him plotting with activists in the Labour and Conservative parties to discredit British politicians seen as a threat to Israel. Most observers believe that Masot was operating within the embassy, as part of Israel’s strategic affairs ministry, which in turn has been running black ops against western critics of Israel. Corbyn, we can safely assume, is high on that list. Rose is on record as saying she was a close friend of Masot’s.

[..] Why, one can reasonably ask, did Panorama ignore Jewish Voice for Labour in this supposed “investigation” of Labour and anti-semitism? The group was specifically set up by Jewish members to counter the claims being made by activists like Rose. Groups like the Jewish Labour Movement have implied that Jewish supporters of Corbyn are the “wrong kind of Jews” – an extremely ugly insinuation that Panorama appeared to endorse by entirely sidelining them. This was one of the reasons the Labour leadership censured the programme-makers in a 50-page document presented to BBC boss Tony Hall, in which it argued that Panorama had “pre-determined the outcome of its investigation”.

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Trump doesn’t like crypto either. He thinks there should be banking charters required.

Bitcoin Extends Losses After Fed Chief Urges Halt To Facebook’s Libra (R.)

Bitcoin dipped almost 8% on Thursday, extending losses the day after U.S. Federal Reserve Chairman Jerome Powell called for a halt to Facebook’s Libra cryptocurrency project until concerns ranging from privacy to money-laundering were addressed. The original cryptocurrency initially fell 7.7% to $11,164 in early morning trade, following a 3.8% slide on Wednesday after Powell’s testimony on monetary policy before the U.S. House of Representatives Financial Services Committee. It was last down 4.5%. Other major cryptocurrencies including Ethereum and Ripple’s XRP fell by similar levels.


“This is a direct response to the Powell testimony and comments on Facebook’s Libra and the implications that could have for the entire cryptocurrency space,” said Craig Erlam, senior market analyst at FX trading platform OANDA. “Libra raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability,” Powell told the committee, adding that he did not think the project could proceed unless those concerns were addressed.

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Hot wallets appear weak.

Japan Crypto Exchange Says $32 Million Missing In Hack (AFP)

A Tokyo-based cryptocurrency exchange said Friday it had halted all services after losing cryptocurrency worth more than $32 million in the latest apparent hack involving virtual money. Remixpoint said its subsidiary BITPoint Japan discovered overnight that about 3.5 billion yen ($32.3 million) in various digital currencies had gone missing from its management. The apparent hack was discovered after an error appeared in the firm’s outgoing funds transfer system on Thursday night. It said the cryptocurrency went missing from a so-called “hot wallet”, which is connected to the internet, but that currency held in “cold wallets” that are offline was not affected.


BITPoint Japan handles various virtual currencies, including bitcoin, ethereum and ripple. Remixpoint said the firm was still analysing the loss and offered no further details. It said it would compensate customers for the losses. Around 2.5 billion yen worth of the missing currency was customer funds, with the rest owned by the firm. Remixpoint shares plunged 18.6 percent following the announcement.

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It’s like Venezuela. Aggression gone completely wrong.

Iran Calls On Britain To Release Seized Oil Tanker Immediately (R.)

Iran called on Britain on Friday to immediately release an oil tanker that British Royal Marines seized last week on suspicion it was breaking European sanctions by taking oil to Syria, a foreign ministry spokesman told state news agency IRNA. “This is a dangerous game and has consequences … the legal pretexts for the capture are not valid … the release of the tanker is in all countries’ interest,” the spokesman, Abbas Mousavi, said. Iran has warned of reciprocal measures if the tanker is not released.


Britain said on Thursday that three Iranian vessels tried to block a British-owned tanker passing through the Strait of Hormuz, which controls the flow of Middle East oil to the world, but backed off when confronted by a Royal Navy warship. Iran denied that its vessels had done any such thing. Tension between Iran and the West has increased a week after Britain seized the tanker and London said the British Heritage, operated by oil company BP, had been approached in the strait between Iran and the Arabian peninsula. Mousavi accused Britain of seizing the tanker under U.S. pressure. “Such illegal measures could increase tensions in the Persian Gulf,” he told IRNA.

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Oh, sure, the new right wing government will make things look like they recover. But the EU squeeze is still on and growth will only be a mirage. Watch the poor get poorer. As long as Greece has to have a 3.5% budget surplus, taking all that direly needed money out of its economy, growth is mathematically impossible.

Greek Growth Expected To Recover In The Second Half Of The Year (K.)

The Greek economy is expected to regain its growth momentum in the second half of the year, after a slowdown in the previous quarters, as a result of increased confidence and favorable monetary conditions, a report by the financial analysis department of the National Bank of Greece argues. The report projects that after a drop in the growth rate in late 2018 and at the start of 2019, economic activity is set to rebound in July-December, with the main indexes reflecting a trend for strengthening consumption and for increased investments.


Nevertheless, the NBG report adds that increased exports are making the economy more vulnerable to the slowdown of the European economy. This, it says, is also reflected in the stagnation of international tourism arrivals over the first four months of the year, on a year-on-year basis. The bank’s baseline scenario provides for a zero increase to tourism revenues in 2019 from the record year of 2018.

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Mexico wants out of the EU

 

 

 

 

Jul 112019
 
 July 11, 2019  Posted by at 8:53 am Finance Tagged with: , , , , , , , , , , , , , ,  8 Responses »


Pablo Picasso Guernica 1937

 

Dollar Slips After Powell Bolsters Rate Cut Bets (R.)
AOC Is Making Monetary Policy Cool (and Political) Again (NYM)
Trump Tasks Aides To Find A Way To Weaken The US Dollar (CNBC)
Lock Him Up (Pinkerton)
Schumer Got Thousands In Donations From Jeffrey Epstein (NYP)
Democrat Rep. Stacey Plaskett To Donate Epstein Campaign Contributions (CNBC)
US Probing Deutsche Bank’s Dealings With Malaysia’s 1MDB (ZH)
Obama the Conservative vs Trump the Revolutionary (EH)
Former UK PM Major Vows To Block Brexit Parliament Suspension (R.)
OPCW’s New Chemical Weapons Team To Launch First Syria Investigations (R.)
UK, US Claim Iranian Boats Attempt To Seize Tanker In Strait Of Hormuz (ZH)

 

 

I’m getting so sick of this. Powelll wants to cut rates but it makes no sense if he’s to uphold Trump’s claim of a great US economy. So what does his spin team come up with? Cut rates because other countries are not doing so well. Cut the crap.

Dollar Slips After Powell Bolsters Rate Cut Bets (R.)

The dollar eased on Thursday after Federal Reserve Chairman Jerome Powell set the stage for a rate cut later this month, vowing to “act as appropriate” to ensure the world’s biggest economy will be able to sustain a decade-long expansion. In testimony to Congress, Powell pointed to “broad” global weakness that was clouding the U.S. economic outlook amid uncertainty about the fallout from the Trump administration’s trade conflict with China and other nations. “Chairman Powell sounded dovish on most dimensions. This is slightly surprising given benign trade developments following last month’s G20 meeting and the recent rebound in nonfarm payrolls,” said Michael Swell, co-head of global fixed income portfolio management at Goldman Sachs Asset Management.


“Overall, his comments around slowing growth against a backdrop of muted inflation and elevated uncertainties is consistent with ‘insurance rate cuts’ this year.” Adding to a generally dovish tone in his testimony, the minutes from the Fed’s previous policy meeting showed many policymakers thought more stimulus would be needed soon, reviving speculation of an aggressive rate cut.

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And AOC also wants low interest rates. Everyone wants the same thing, and nobody says: Wait a minute?!

AOC Is Making Monetary Policy Cool (and Political) Again (NYM)

Ocasio-Cortez : In early 2014, the Federal Reserve believed that the long run unemployment rate was around 5.4 percent. In early 2018, it as estimated that this was now lower, around 4.5 percent. Now, the estimate is around 4.2 percent. What is the current unemployment rate today?
Powell : 3.7 percent.

Ocasio: 3.7 percent…Unemployment has fallen about three full points since 2014 but inflation is no higher today than it was five years ago. Given these facts, do you think it’s possible that the Fed’s estimates of the lowest sustainable unemployment rate may have been too high?
Powell : Absolutely.

This exchange may sound dull and technical. But the congresswoman’s point has real human stakes. America’s central bank has a dual mandate: to promote full employment and price stability. How the Fed chooses to balance those two objectives has redistributive implications. The wealthy have far more to lose from inflation than they do from modest levels of unemployment. In fact, many business owners may actually prefer for the U.S. economy not to achieve full employment, since workers tend to be less demanding when jobs are scarce. By contrast, the most vulnerable workers in the U.S. — such as those with criminal records or little experience — will struggle to get a foothold in the labor market unless policy makers err on the side of letting unemployment fall “too low.”

And this is what AOC’s questions are implicitly about. If the Federal Reserve believes that the U.S. economy cannot sustain unemployment below 5 percent without suffering high inflation, then it will raise interest rates to cool off investment, thereby preventing too many workers from getting jobs. Ocasio-Cortez’s implication is that, by raising interest rates out of a fear of illusory inflation, the Fed may have needlessly hurt American workers. Powell’s concession on that point is significant, and suggests that the central bank will be less inclined to err on the side of hurting the vulnerable in the future.

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We’re all of us in the gutter… (but apparently there’s no-one left looking at the stars).

Trump Tasks Aides To Find A Way To Weaken The US Dollar (CNBC)

President Donald Trump has reportedly tasked aides to find a way to weaken the U.S. dollar in an effort to boost the economy ahead of the 2020 presidential election. The president also asked about the greenback while interviewing Federal Reserve board nominees Judy Shelton and Christopher Waller, people familiar with the matter told Bloomberg News. Those individuals also told Bloomberg that Trump’s chief economic advisor, Larry Kudlow, and Treasury Secretary Steven Mnuchin disapprove of the idea of government tampering to weaken the dollar. Traditionally, past administrations have always maintained publicly they were for a strong dollar because dollar assets like Treasurys are so widely held around the globe.


Trump has often bemoaned the relative strength of the U.S. dollar in foreign exchange markets, blaming foreign nations for devaluing their currencies and thereby inflating the American trade deficit. Last week, the president said in a tweet that the U.S. should match China and Europe’s “currency manipulation game.” “China and Europe playing big currency manipulation game and pumping money into their system in order to compete with USA,” Trump said on Twitter. “We should MATCH, or continue being the dummies who sit back and politely watch as other countries continue to play their games – as they have for many years!”

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About Epstein, but with a historical twist.

Lock Him Up (Pinkerton)

One landmark of American reform was the White-Slave Traffic Act, signed into law in 1910 (“white slavery,” we might note, is known today as “sex trafficking”). That law, aimed at preventing not only prostitution but also “debauchery,” is known as the Mann Act in honor of its principal author, Representative James R. Mann, Republican of Illinois, who served in Congress from 1897 to 1922. Mann’s career mostly coincided with the presidential tenures of two great reformers, Theodore Roosevelt and Woodrow Wilson. And it’s hard to overstate just how central to progressive thinking was the combatting of “vice.” After all, if the goal was to create a just society, it also had to be a wholesome society; otherwise no justice could be sustainable.

Thus when Roosevelt served as police commissioner of New York City in the mid-1890s, he focused on fighting vice, rackets, and corruption. Of course, Mann, Roosevelt, and Wilson had much more on their minds than just cleaning up depravity. They saw themselves as reformers across the board; that is, they were eager to improve economic conditions as well as social ones. So it was that Mann also co-authored the Mann-Elkins Act, further regulating the railroads; he also spearheaded the Pure Food and Drug Act, creating the FDA. It’s interesting that when Mann died in 1922, The New York Times ran an entirely admiring obituary, recalling him as “a dominating figure in the House…[a] leader in dozens of parliamentary battles.” In other words, back then, the Times was fully onboard with full-spectrum cleanup, on the Right as well as the Left.

To be sure, the Mann Act hardly eradicated the problem of sex-trafficking, just as Mann’s other legislative efforts did not put an end to abuses in transportation and in foods and drugs. However, we can say that Mann made things better. Of course, the Mann Act has long been controversial. Back in 1913, the African-American boxer Jack Johnson was convicted according to its provisions. (Intriguingly, in 2018, Johnson was posthumously pardoned by President Trump.) In 1944, film legend Charlie Chaplin, too, found himself busted on a Mann Act rap. Chaplin was accused of transporting a young “actress” across state lines; he was acquitted after a sensational trial, but not before it was learned that he had financed his lover’s two abortions. Chaplin’s career in Hollywood was effectively over.

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Schumer telling others what to do, but doing dick all himself. How much did the Clinton Foundation get?

Schumer Got Thousands In Donations From Jeffrey Epstein (NYP)

Sen. Chuck Schumer — who called on Labor Secretary Alexander Acosta to resign and said President Trump should “answer” for his friendship with Jeffrey Epstein — accepted thousands of dollars in donations from the alleged pedophile throughout the 1990s, The Post has learned. Federal Election Commission records show that Schumer received seven $1,000 donations from Epstein between 1992 and 1997, first as a U.S. congressman from New York and then when he was vying to be the state’s senator in 1998, an election he won. Epstein — who was arrested Saturday and charged with sex trafficking and a related conspiracy count for allegedly sexually abusing a vast network of underage girls — also gave $10,000 to “Victory in New York,” a joint fundraising committee established by Schumer and the Democratic Senatorial Campaign Committee.

Epstein gave an additional $5,000 to “Win New York,” a Schumer-associated joint committee that benefited the Liberal Party of New York State. Both of Epstein’s donations to the committees came in October 1998 — and look to have primarily benefited the DSCC and the Liberal Party of New York, as Epstein would have already met the $2,000 limit of donating individually to Schumer. At the time, donors could give $1,000 to a candidate per election — once in the primary and again in the general. That means Schumer and Schumer-linked entities received a combined $22,000.

On the Senate floor Tuesday, Schumer made three Epstein-related demands. He first called on Acosta to resign. [..] “Instead of prosecuting a predator and serial sex trafficker of children, Acosta chose to let him off easy,” Schumer said on the floor. “This is not acceptable. We cannot have, as one of the leading appointed officials in America, someone who has done this.” Schumer also asked that the Department of Justice’s Office of Professional Responsibility make public its review of Acosta’s handling of the case. Finally, Schumer said that Trump should paint a fuller picture of what he meant when he called Epstein a “terrific guy” in a 2002 article for New York Magazine.

An April 2011 court filing shows that Trump eventually barred Epstein from Mar-a-Lago “because Epstein sexually assaulted a girl at the club,” the documents allege. Trump didn’t officially launch a political career until June 2015. No FEC records show that Epstein was ever a Trump donor.

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So when will Schumer follow suit? And the rest of them?

Democrat Rep. Stacey Plaskett To Donate Epstein Campaign Contributions (CNBC)

Democratic congresswoman Stacey Plaskett has decided to reverse course and will give away the contributions she has received from Jeffrey Epstein, who is accused of child sex trafficking. The move comes a day after her team told CNBC that she was unlikely to return the campaign donations after Epstein’s arrest. “In light of new information and allegations that have been made against Jeffrey Epstein I have decided to make contributions to Virgin Islands organizations that work with women and children in the amount of his previous contributions,” Plaskett said in a statement Tuesday.

“My litmus test for accepting campaign contributions has been based on whether the donor’s money was made legally or by ill-gotten means and that the contributor will not ask of me or my Congressional office for any special favors. All my contributions have passed that test. In this case however, I am uncomfortable having received money from someone who has been accused of these egregious actions multiple times,” said Plaskett, who represents the U.S. Virgin Islands in the House as a delegate. Her spokesman Mike McQueery later noted the Epstein donations will be given to The Women’s Coalition and The Family Resource Center.

Her initial announcement led to an outcry on social media, with prominent Democratic strategists such as Adam Parkhomenko calling on Plaskett to give the money over to a nonprofit organization such as the Rape, Abuse & Incest National Network. Since Epstein pleaded not guilty Monday, Plaskett is the first politician to say she is giving away donations from Epstein.

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Deutsche severed ties with Epstein just months ago.

US Probing Deutsche Bank’s Dealings With Malaysia’s 1MDB (ZH)

When it rains inside the halls of Deutsche Bank, the flood is biblical. Just when it seemed that the biggest (if not for long) German bank, already reeling from the biggest mass layoffs since Lehman, couldn’t possibly bear any more bad news, along comes the US government with yet another potentially criminal investigation, this time over Deutsche Bank’s involvement with the sprawling, multibillion-dollar Malaysian development fraud scandal that toppled a prime minister, crippled Goldman Sachs stock and stretched from Hollywood to Wall Street. According to the WSJ, the DOJ is investigating whether the German bank violated foreign corruption or anti-money-laundering laws in its work for the 1Malaysia Development Bhd. fund, or 1MDB, which included helping the fund raise $1.2 billion in 2014 as concerns about the fund’s management and financials had begun to circulate.

So how did Deutsche Bank get thrown into yet another scandal? It turns out that DB was snitched out by former Goldman banker, Tim Leissner, the man who was ground zero in the original 1MDB scandal, and who ended up costing Goldman billions in dollar in market cap as its stock tumbled last year as its role in the biggest Malaysian corruption scandal got exposed, and according to some, cost Lloyd Blankfein his job. As it turns out, Leissner is now cooperating with authorities, and among his “good Samaritan” duties decided to throw the one bank that has more dirt on it than Goldman: Deutsche Bank. As we have reported extensively in the past, prosecutors have been investigating similar issues at Goldman, where Leissner, a former managing director, pleaded guilty last year and admitted to earlier helping siphon off billions of dollars from the fund.

[..] But wait, there’s more! Because roughly at the same time as DB’s potential role in the 1MDB scandal was exposed by the WSJ, both the NYT and Bloomberg reported that the German bank had extended relations with yet another, even more scandalous figure: Jeffrey Epstein. According to NYT, Epstein “appears to have been doing business and trading currencies through Deutsche Bank until just a few months ago.” But as the possibility of federal charges loomed, the bank ended its client relationship with Epstein. It is not clear what the value of those accounts were at the time they were closed. Bloomberg confirms, reporting that “Deutsche Bank severed business ties with Jeffrey Epstein earlier this year, just as federal authorities were preparing to charge the financier with operating a sex-trafficking ring of underage girls [..] “

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Nice take by Ed Harrison. I’m no big fan of these alleged sharp divisions between generations, though.

Obama the Conservative vs Trump the Revolutionary (EH)

I would argue that [Obama] ran for President in 2008 on a slogan – Change You Can Believe In – which very much fits his generation, late baby boom reaching across to the early Gen X’ers. “Change you can believe in” is a moniker designed to evoke a sense of technocratic tweaking, of taking a good system and making it more efficient and more fair for all citizens. It is not a call for revolution. What Obama was saying was essentially, “I am going to take the system we have – the best that man has created – and make it better.” He was not saying, “the system is rigged. The system is broken. And I’m going to burn it down and build up something better.”

Obama’s message was a conservative message. It was a message that was steeped in the status quo, with the change coming only at the margin. It meant continuity in policy and a bevy of tried and trusted policymakers to get us to the next destination. Even Obamacare is a tweak of the existing policy. It is not a fundamentally different healthcare system controlled by different healthcare providers. [..] Donald Trump doesn’t think that way. Norms only matter to him to the degree they move his personal agenda forward. He’s a pretty simple guy in this sense. If a policy choice or a norm helps Donald Trump, then he’s for it. If it hurts him, he’s against it. It’s as simple as that. But, that’s not conservative …at all. Trump may message “Make America Great Again”. But, his process is more about bending and breaking rules, damn the consequences.

None of this is to say that Millennials would support Trump over Obama because they want change. It’s more that Obama’s ‘change you can believe in’ approach was a very incremental, status quo-oriented conservative approach that has disappointed Millennials. They want still more change – not a bend and break the rule kind – but a fundamental systemic change. What does that mean about the next economic downturn? Personally, I think it means that — when people living in precarious at-will employment, with insufficient healthcare coverage, saddled by student debt, unable to purchase homes to build wealth feel the full bore of an economic downturn — they will be willing to burn the system down. They will have no allegiance to the status quo and will vote accordingly.

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Oh, c’mon, wouldn’t it be highly fitting if the Queen were to hammer the final nail into British democracy?

Former UK PM Major Vows To Block Brexit Parliament Suspension (R.)

Former British prime minister John Major vowed on Wednesday to go to court to block his party colleague Boris Johnson from suspending parliament and dragging the queen into a constitutional crisis to deliver a no-deal Brexit. Johnson, the favourite to win a Conservative leadership election and so become the next prime minister, has refused to rule out suspending, or proroguing, parliament to ensure Britain leaves the European Union on Oct. 31 — with or without a deal. That could provoke a constitutional crisis in one of the world’s oldest and most stable democracies because parliament is opposed to a disorderly exit, lacking a transition deal to ease the economic dislocation of leaving the bloc.

While it is essentially up to the prime minister to make the decision, Major, an opponent of Brexit who has not shied away for criticising his party on the issue, said it would require the queen’s blessing. “In order to close down parliament, the prime minister would have to go to Her Majesty the Queen and ask for her permission to prorogue,” he told BBC Radio. “If her first minister asks for that permission, it is almost inconceivable that the queen will do anything other than grant it. “She is then in the midst of a constitutional controversy that no serious politician should put the queen in the middle of. If that were to happen, there would be a queue of people who would seek judicial review. I for one would be prepared to go and seek judicial review.”

Major accused Johnson of hypocrisy for backing Brexit to secure more power for Britain’s parliament, only to propose to sideline lawmakers when it suited him. He said parliament had not been suspended since King Charles I did so during the English Civil War. Charles was eventually executed, in 1649.

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The OPCW killed its own credibility, thoroughly. Disband it.

OPCW’s New Chemical Weapons Team To Launch First Syria Investigations (R.)

A new team established by the global chemical weapons watchdog to attribute blame for the use of banned munitions in Syria will investigate nine alleged attacks during the country’s civil war, including in the town of Douma, sources briefed on the matter told Reuters. The Organisation for the Prohibition of Chemical Weapons (OPCW) was created in 1997 as a technical body to enforce a global non-proliferation treaty. Until now it had been authorised only to say whether chemical attacks occurred, not who perpetrated them. Last June, the Investigation and Identification Team (IIT) was established by the OPCW’s member states during a special session, a move that has brought deeper political division to the U.N. -backed agency.


Now it has identified the locations of its first investigations to be conducted in the coming three years. A document circulated to OPCW member states, a copy of which was seen by Reuters, said the team “has identified a non-exhaustive provisional list of incidents on which it intends to focus its investigative work” between 2014 and 2018. The British-led proposal creating the 10-member team was supported by the United States and European Union, but opposed by Russia, Iran, Syria and their allies. Syria has refused to issue visas to the team’s members or to provide it with documentation, OPCW chief Fernando Arias said in comments to member states published last month.

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Where’s the credibility in this case?

UK, US Claim Iranian Boats Attempt To Seize Tanker In Strait Of Hormuz (ZH)

With the Persian Gulf uncharacteristically quiet in recent days, without any material provocation either real or staged, late on Wednesday CNN reported that five armed Iranian Islamic Revolutionary Guard boats unsuccessfully tried to seize a British oil tanker in the Persian Gulf. There was no independent verification of the report, but instead it was once again sourced to those who stands to gain the most from a way with Iran, namely “two US officials with direct knowledge of the incident.” According to the report, the British Heritage tanker was sailing out of the Persian Gulf and was crossing into the Strait of Hormuz area when it was approached by the Iranian boats.


The Iranians ordered the tanker to change course and stop in nearby Iranian territorial waters, according to the officials. A US aircraft was overhead and recorded video of the incident, although so far a video has not been released. In addition to the US aircraft escort, the UK’s Royal Navy frigate HMS Montrose had been escorting the tanker, and during the confrontation, it trained its deck guns on the Iranians and gave them a verbal warning to back away, which they did. Montrose is equipped on the deck with 30 mm guns specifically designed to drive off small boats. The frigate was in the region performing a “maritime security role” according to a prior notification from UK officials.

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Seen at the inane Defend Media Freedom conference in the UK.

 

 

 

‘Man goes to a psychiatrist. He says, “I keep thinking I’m a dog.” Psychiatrist says, “OK, let’s get you on the couch.” Man says, “I’m not allowed on the couch.”‘

 

 

 

 

Jul 102019
 


Pablo Picasso Guernica [Study] V 1937

 

Jeffrey Epstein Shipped Himself A 53-Pound Shredder (Grim)
Doubts Over Deutsche Bank Turnaround Plan Dent Shaky Shares (R.)
Trump’s Twitter Blocking Violates Constitution – Appeals Court (CNN)
Ocasio-Cortez Sued Over Twitter Blocks (Hill)
Facebook’s New Policy Says It’s OK to Post Death Threats Against Me (PJW)
EU Subsidy Loss ‘Could Wipe Out UK Farms’ Like The Coal Industry (BBC)
UK, France To Send Forces To Syria … But Americans Will Pay (RT)
U.S Wants Military Coalition To Safeguard Waters Off Iran, Yemen (R.)
US Urges Turkey To Halt Drilling Operations Off Cyprus Coast (R.)
EU To Cut Contacts, Aid To Turkey Over Cyprus Drilling Violations (K.)
Turkey Rejects Greek, EU Claims That Drilling Off Cyprus Illegitimate (R.)
Holland Covers Hundreds Of Bus Stops With Plants As Gift To Honeybees (Ind.)
David Attenborough: Polluting Planet May Become As Reviled As Slavery (G.)
Glacial Melting In Antarctica May Become Irreversible (G.)

 

 

The news will be all over Epstein for a long time to come. This overview from Ryan Grim is as good as the next one. We must wait till details start leaking out. Trump Labor Sec. Acosta will be gone, but who else pops up?

Jeffrey Epstein Shipped Himself A 53-Pound Shredder (Grim)

Jeffrey Epstein shipped a shredder from the U.S. Virgin Islands to his Palm Beach home in July 2008, shortly after reaching a non-prosecution agreement with then-U.S. Attorney Alex Acosta, maritime records show. Then, in March of this year, shortly after a Florida federal judge invalidated that agreement, Epstein shipped a tile and carpet extractor from the Virgin Islands to his Manhattan townhouse, the records show. Epstein, a billionaire financier, was arrested in New Jersey last Saturday on charges of running a sex trafficking ring that involved luring underage girls to his New York and Florida residences, and taking them on global flights on his airplane, dubbed the “Lolita Express.”

Epstein was first accused of abusing underage girls, some of them as young as 14, more than a decade ago, and he evaded prosecution potentially due to his high-profile connections. A key challenge investigators faced when first targeting Epstein in the mid-2000s was an inability to obtain evidence through subpoena. A 2005 search of Epstein’s Palm Beach home came up empty in its quest for computers that investigators suspected contained critical evidence connected to his alleged sexual abuse of young girls. In 2007, a federal grand jury subpoenaed the computers. That August, Acosta, who is now Donald Trump’s labor secretary, entered into plea agreement discussions with Epstein.

Because of those talks, a motion to compel production of Epstein’s computers was delayed, according to the Miami Herald. Epstein held out, however, resisting the deal because it would require him to register as a sex offender. The FBI continued investigating and in March 2008, according to the Miami Herald, preparations were being made to take the case to a new federal grand jury. That would prove unnecessary, as Epstein agreed to a deal with Acosta. Without notifying the 32 identified victims, the federal government reached a non-prosecution agreement with Epstein in exchange for his guilty plea in state court to a minor offense. He pleaded guilty on June 30.

On July 7, 2008, federal prosecutors told Epstein’s attorneys via email that they intended to notify the 32 victims about the agreement. Epstein’s lawyers and the prosecutors debated how much of the agreement to reveal, settling on a less than full accounting. A week later, on July 15, Epstein received a shipment at his Palm Beach home from the port in the U.S. Virgin Islands closest to his home there, according to maritime shipping records compiled by ImportGenius and provided to The Intercept. The shipment was a 53-pound shredder.

For the next decade, Epstein’s legal troubles appeared to be behind him. Then, in November 2018, the Miami Herald published a new investigation into Epstein’s alleged child sex trafficking ring, which prompted federal investigators to take a new look at the case. However, the agreement not to prosecute first had to be invalidated. That came on February 21, when a Florida federal judge ruled that Acosta’s office had violated the Crime Victims’ Rights Act by keeping the women in the dark.

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They’re on “on a week-long roadshow to explain the restructuring”?! What century is this?

Doubts Over Deutsche Bank Turnaround Plan Dent Shaky Shares (R.)

Deutsche Bank shares extended losses on Tuesday on investor doubts that its chief executive can revive the lender by shrinking the investment bank and returning to its roots as banker to corporate Germany. Christian Sewing, CEO for just over a year, and his finance chief are on a week-long roadshow to explain the restructuring. To underline his commitment, Sewing plans to invest a quarter of his fixed salary — around 820,000 euros — in Deutsche shares, a person with knowledge of the matter said. Deutsche’s stock price has fallen 10 percent since Sunday’s restructuring announcement to cut 18,000 jobs in a 7.4 billion euro ($8.3 billion) “reinvention”. It is the biggest two-day decline in almost three years.


By 1312 GMT, shares were down 3.8% on the day, after sliding as much as 6.5% earlier. The bank’s bonds also fell. Analysts and investors say Sewing, who joined Deutsche Bank in 1989, is right to cut back its trading desks but question if he can make his plan work when interest rates are still low and U.S. banks have expanded their share of the German market. “There seems to be some concerns around the plan details, particularly the ability for the bank to retain revenues while cutting costs,” one of the bank’s top 25 shareholders told Reuters, citing worries the bank would need fresh equity to execute Sewing’s plan.

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But if this applies to Trump, who’s next?

Trump’s Twitter Blocking Violates Constitution – Appeals Court (CNN)

An appeals court said Tuesday that President Donald Trump violated the First Amendment by blocking users on Twitter. The 2nd US Circuit Court of Appeals upheld a New York judge’s ruling and found that Trump “engaged in unconstitutional viewpoint discrimination by utilizing Twitter’s ‘blocking’ function to limit certain users’ access to his social media account, which is otherwise open to the public at large, because he disagrees with their speech.” “We hold that he engaged in such discrimination,” the ruling adds. The judges on the appeals court concluded that “the First Amendment does not permit a public official who utilizes a social media account for all manner of official purposes to exclude persons from an otherwise-open online dialogue because they expressed views with which the official disagrees.”


The challenge to Trump’s unprecedented use of Twitter in office came from seven individuals he blocked, as well as the Knight First Amendment Institute, which argued that the President’s personal account is an extension of his office. The Justice Department argued in March that the President wasn’t “wielding the power” of the federal government when he blocked certain individuals from his personal Twitter account, @realDonaldTrump, because while the President sends tweets in his official capacity, he blocks users as a personal matter. But the appeals court disagreed with that view.

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The goose and the gander.

Ocasio-Cortez Sued Over Twitter Blocks (Hill)

One former Democratic state lawmaker and one Republican congressional hopeful announced this week that they are suing Rep. Alexandria Ocasio-Cortez (D-N.Y.) over being blocked from her personal Twitter account. Former state assemblyman Dov Hikind (D) and congressional candidate Joseph Saladino, who is running in a Republican primary for the chance to battle Rep. Max Rose (D-N.Y.), announced lawsuits this week against the freshman Democratic congresswoman, seeking injunctive relief in the form of a court order demanding they be unblocked. Saladino announced in a press release that he had filed suit in the Southern District of New York, while Hikind told Fox News that he had filed his claim in the state’s Eastern District.

“I have officially filed my lawsuit against AOC for blocking me on twitter,” Saladino tweeted. “Trump is not allowed to block people, will the standards apply equally? Stay tuned to find out!” “If we can’t talk to one another, the whole system breaks down,” Saladino added in his press release. “Look what is happening in my district when entrenched NeverTrumpers are confronted by America First ideas. Like it or not we live in the same city and we need to be professional.” In an interview with Fox News, Hikind pointed to a recent court ruling declaring that President Trump is not allowed to block critics from his official Twitter account because of his status as a public official as legal precedent for his claim.

“Just today the 2nd Circuit Court of Appeals affirmed a ruling that elected officials cannot block individuals from their Twitter accounts, thereby setting a precedent that Ocasio-Cortez must follow,” Hikind told the network. “Twitter is a public space, and all should have access to the government officials on it.”

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Think of Paul Joseph Watson what you like, but this is insane. Time to tackle Zuck.

Facebook’s New Policy Says It’s OK to Post Death Threats Against Me (PJW)

Facebook has issued a new policy update saying it’s acceptable to post death threats and incite violence against me, despite this being a crime in the United Kingdom. No, I’m not joking. A Community Standards update published by Facebook states (emphasis mine); “Do not post: Threats that could lead to death (and other forms of high-severity violence) of any target(s) where threat is defined as any of the following: “Statements of intent to commit high-severity violence; or Calls for high-severity violence (unless the target is an organization or individual covered in the Dangerous Individuals and Organizations policy)….”

Back in May, Facebook and Instagram banned me under the justification that I was a “dangerous individual”. They provided no evidence whatsoever that I had behaved in a “dangerous” manner or violated any of their policies. Facebook has designated me a “dangerous individual” and now says it’s acceptable for its users to issue death threats against me. This is a crime in the United Kingdom under the 1988 Malicious Communications Act which states, “Any person who sends to another person a letter, electronic communication or article of any description which conveys….a threat….is guilty of an offence.” The largest social media company in the world with over 2 billion users literally says its fine to incite violence against me, despite this being illegal. They are painting a target on my back.

[..] Two months ago, via my lawyers, I filed a Subject Access Request demanding Facebook turn over all information relating to me. Facebook has yet to respond to this request, despite it being a legal requirement to respond within 30 days. If and when Facebook ever responds to this legal demand, the next step will be to begin litigation proceedings. The fact that Facebook has literally said it’s OK to incite violence against me is going to be a very interesting potential addition to those proceedings.

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Maybe the coal industry is not the best example in the time of climate crisis.

EU Subsidy Loss ‘Could Wipe Out UK Farms’ Like The Coal Industry (BBC)

With three months to go before the UK could leave the European Union (EU), farmers say they still face uncertainty about future subsidy levels. Last year farmers received £3.5bn in financial support through the EU’s Common Agricultural Policy (CAP). One farmer from York said he feared farms could soon be “wiped out like the coal industry”. The government said farmers had been told subsidy levels would be maintained until the next general election. But the National Audit Office said farmers had been left unable to plan for the future and the main farming union called for “cast-iron commitments” from the government. CAP funding is one of the EU’s biggest policies with a Europe-wide budget worth more than £50bn a year.


The subsidies are designed to support the farming industry and help farmers and landowners maintain their land. Some farmers have said without long-term guarantees about future subsidy levels, farms could disappear from the landscape. “We could be wiped out like the coal industry,” said Roger Hobson, whose 4,500-acre farm near York qualifies for a subsidy worth £100,000 a year. “This is not just about growing food, these subsidies help us improve the landscape and protect endangered species. “What we fear is that in the future the farm industry will have to go to the government and compete for funding alongside the NHS and other public services. “In that situation the government is always going to pick the NHS over farmers.”

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Don’t.

UK, France To Send Forces To Syria … But Americans Will Pay (RT)

With US President Donald Trump hungry for a withdrawal from Syria, a new report claims Britain and France will send their own forces to pick up the slack, along with other allies. But the swap will cost Washington. Between 1,000 and 2,000 American troops are presently stationed in northeastern Syria, supporting anti-government Kurdish fighters. However, as the US looks to wind down its presence in Syria, the Trump administration has looked to its allies to pick up the slack. Germany rebuffed a request for ground troops on Monday, citing “well known” German policy. Britain and France, on the other hand, are willing to heed Washignton’s call, according to a new report from Foreign Policy.


Both countries have a limited number of special forces on the ground in Syria, and will commit to a troop increase of between 10 and 15 percent to allow the US to withdraw. President Trump is no fan of outsourcing American jobs to foreigners, so why have Britain and France to do America’s dirty work? Well, for one thing, it’ll silence saber-rattlers like John Bolton. Trump announced the US’ complete withdrawal from Syria in December, a country that he said at the time was “sand and death.” The move was seen as a return to the non-interventionist platform he touted during his election campaign, when he mused “why aren’t we letting ISIS go and fight Assad and then we pick up the remnants?”

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Yeah, we really need Europeans involved in the Saudi war on Yemen.

U.S Wants Military Coalition To Safeguard Waters Off Iran, Yemen (R.)

The United States hopes to enlist allies over the next two weeks or so in a military coalition to safeguard strategic waters off Iran and Yemen, where Washington blames Iran and Iran-aligned fighters for attacks, the top U.S. general said on Tuesday. Under the plan, which has only been finalized in recent days, the United States would provide command ships and lead surveillance efforts for the military coalition. Allies would patrol waters near those U.S. command ships and escort commercial vessels with their nation’s flags. Marine General Joseph Dunford, the chairman of the Joint Chiefs of Staff, articulated those details to reporters following meetings on Tuesday about it with acting U.S. Defense Secretary Mark Esper and Secretary of State Mike Pompeo.


“We’re engaging now with a number of countries to see if we can put together a coalition that would ensure freedom of navigation both in the Straits of Hormuz and the Bab al-Mandab,” Dunford said. “And so I think probably over the next couple of weeks we’ll identify which nations have the political will to support that initiative and then we’ll work directly with the militaries to identify the specific capabilities that’ll support that.” Iran has long threatened to close the Strait of Hormuz, through which almost a fifth of the world’s oil passes, if it was unable to export its oil, something U.S. President Donald Trump’s administration has sought as a way to pressure Tehran to renegotiate a deal on its nuclear program.

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Or what? Sanctions? Erdogan is a wounded animal, beware.

US Urges Turkey To Halt Drilling Operations Off Cyprus Coast (R.)

The US State Department on Tuesday urged Turkish authorities to halt energy drilling operations off the Cypriot coast in the Mediterranean, a day after Cyprus protested a Turkish ship dropping anchor there. “This provocative step raises tensions in the region. We urge Turkish authorities to halt these operations and encourage all parties to act with restraint and refrain from actions that increase tensions in the region,” a US State Department spokeswoman said in a statement. Turkey and the internationally recognized government of Cyprus have overlapping claims in that part of the Mediterranean, an area thought to be rich in natural gas.


Cyprus, a member of the European Union, has discovered natural gas in areas off the southern coast of the disputed island, though nothing has been extracted. Turkey contests the rights of Cyprus to explore for gas, sending its own drilling ships to stake claims around the island. Refinitiv Eikon shipping data showed a Turkish ship arrived off the east coast of Cyprus earlier this week. Another Turkish vessel has been spotted off the west of Cyprus since early May. The Cypriot presidency on Monday accused Turkey of a “grave violation,” and an EU statement also rebuked the Turkish action.

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“Such action could target companies, individuals, and Turkey’s deep-sea hydrocarbon exploration and production sectors..”

EU To Cut Contacts, Aid To Turkey Over Cyprus Drilling Violations (K.)

The European Union is considering suspending most high-level contacts with Turkey and cut the flow of funds in protest of the Turkish drilling activities in the Cyprus EEZ, Bloomberg reports. A range of measures will reportedly be discussed by EU ministers on Wednesday in Brussels. One measure could limit the European Investment Bank’s sovereign-backed lending in Turkey and confirm a cut of some 146 million euros ($163 million) in aid for next year. The options proposed by the European Commission also include suspending all ministerial and leaders’ meetings, as well as ongoing talks between the two sides on an aviation agreement.


The European External Action Service would also advise member states to refrain from high-level contacts with Turkey. Bloomberg reports that EU leaders have sided with Cyprus in the dispute, declaring last month that they are ready to consider sanctions if Turkey continues drilling. Such action could target companies, individuals, and Turkey’s deep-sea hydrocarbon exploration and production sectors, though they aren’t currently on the menu of the commission’s proposals. The measures will likely be agreed Wednesday and approved by EU foreign ministers when they meet in Brussels next week.

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Turkey claims northern Cyprus is Turkish land.

Turkey Rejects Greek, EU Claims That Drilling Off Cyprus Illegitimate (R.)

Turkey’s foreign ministry said on Wednesday it rejected statements by Greek and European Union officials that Turkish drilling for gas and oil off Cyprus was illegitimate and said the EU could not be an impartial mediator on the Cyprus problem. The ministry said in a statement that Turkey’s Fatih ship had started drilling activities to the west of the Mediterranean island at the start of May and its Yavuz ship had recently arrived to the east of Cyprus and would conduct drilling activities.

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Sometimes it’s the simplest things. But when they start blabbing about “completely clean public transport”, you know they don’t really have a clue. A long struggle lies ahead.

Holland Covers Hundreds Of Bus Stops With Plants As Gift To Honeybees (Ind.)

The roofs of hundreds of bus stops have been covered in plants as a gift to honeybee, by a city in the Netherlands. Mainly made up of sedum plants, a total of 316 have been covered in greenery in Utrecht. The shelters not only support the city’s biodiversity, such as honey bees and bumblebees, but they also help capture fine dust and store rainwater. The roofs are looked after by workers who drive around in electric vehicles, and the bus stops have all been fitted with energy-efficient LED lights and bamboo benches.

The city aims to introduce 55 new electric buses by the end of the year and have “completely clean public transport” by 2028. The electricity used to power the buses will come directly from Dutch windmills. Utrecht also runs a scheme which allows residents to apply for funding to transform their own roofs into green roofs.

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He woke up late, but he did.

David Attenborough: Polluting Planet May Become As Reviled As Slavery (G.)

The attitude of young people towards tackling the environmental crisis is “a source of great hope”, David Attenborough has told MPs, as he predicted that polluting the planet would soon provoke as much abhorrence as slavery. Giving evidence to the business, energy and industrial strategy committee on how to tackle the climate emergency, the naturalist and TV presenter said radical action was required. Asked by the Tory MP Patrick McLoughlin, a committee member, whether the government’s new commitment of net zero carbon emissions for the UK by 2050 was rapid enough, Attenborough said such targets were not necessarily the best approach. “In a way I would think that is not the way of focusing on the problem,” he said.

“We cannot be radical enough in dealing with the issues that face us at the moment. The question is: what is practically possible? How can we take the electorate with us in dealing with these things?” He said: “The most encouraging thing that I see, of course, is that the electors of tomorrow are already making themselves and their voices very, very clear. And that is a source of great comfort in a way, but also the justification, the reality, that these young people are recognising that their world is the future. “I’m OK, and all of us here are OK, because we don’t face the problems that are coming. But the problems in the next 30 years are really major problems that are going to cause social unrest, and great changes in the way that we live, and what we eat. It’s going to happen.”

Asked by the Labour MP Vernon Coaker to expand on how public attitudes were shifting, Attenborough replied: “There was a time in the 19th century when it was perfectly acceptable for civilised human beings to think that it was morally acceptable to actually own another human being for a slave. And somehow or other, in the space of 20 or 30 years, the public perception of that totally transformed.” He said: “I suspect that we are right now in the beginning of a big change. Young people in particular are the stimulus that’s bringing it about.

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Not surte that talking about things that MIGHT happen in 600 years is very useful…

Glacial Melting In Antarctica May Become Irreversible (G.)

Antarctica faces a tipping point where glacial melting will accelerate and become irreversible even if global heating eases, research suggests. A Nasa-funded study found instability in the Thwaites glacier meant there would probably come a point when it was impossible to stop it flowing into the sea and triggering a 50cm sea level rise. Other Antarctic glaciers were likely to be similarly unstable. Recent research found the rate of ice loss from five Antarctic glaciers had doubled in six years and was five times faster than in the 1990s. Ice loss is spreading from the coast into the continent’s interior, with a reduction of more than 100 metres in thickness at some sites.

The Thwaites glacier, part of the West Antarctic ice sheet, is believed to pose the greatest risk for rapid future sea level rise. Research recently published in the Proceedings of the National Academy of Sciences journal found it was likely to succumb to instability linked to the retreat of its grounding line on the seabed that would lead to it shedding ice faster than previously expected. Alex Robel, an assistant professor at the US Georgia Institute of Technology and the study’s leader, said if instability was triggered, the ice sheet could be lost in the space of 150 years, even if temperatures stopped rising. “It will keep going by itself and that’s the worry,” he said.

Modelling simulations suggested extensive ice loss would start in 600 years but the researchers said it could occur sooner depending on the pace of global heating and nature of the instability. Hélène Seroussi, a jet propulsion laboratory scientist at Nasa, said: “It could happen in the next 200 to 600 years. It depends on the bedrock topography under the ice, and we don’t know it in great detail yet.”

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Jul 092019
 


Pablo Picasso Guernica [Study] III 1937

 

Carnage At Deutsche Bank (Coppola)
Gold Is At A Historical Low (Von Greyerz)
Trump Hits Out At May After Leak Of Damning Cables (AFP)
Barr Talks 2020 Citizenship Question, Recuses Self From Epstein Case (ZH)
I Hear That Train a’Comin’ (Kunstler)
How Syriza Let The Greek Right Escape The Dustbin Of History (Varoufakis)
Hong Kong Leader Carrie Lam: Extradition Bill ‘Is Dead’ (CNBC)
Almost Half Of Brits Are Stockpiling Food, Medicine And Clothes (BI)
Russia Prepares S-400 Systems For Delivery To Turkey (AP)
Russia-Gate Blossoms Into Deep-State-Gate (McGovern)
Russia’s RT and Sputnik Barred From UK Conference On Media Freedom (G.)
Juror Urges US Judge To Uphold $80 Million Roundup Verdict Against Bayer (R.)

 

 

No, we’re not going to feel sorry for bankers.

Carnage At Deutsche Bank (Coppola)

The outlook for many of the terminated staff is grim, particularly in the U.K. where Brexit uncertainty is casting a considerable shadow. Not that anyone outside the finance industry cares, much. The British haven’t forgotten the financial crisis of 2008. The business that Deutsche Bank is closing down is bigger than Nissan’s automobile manufacturing plant in Sunderland, the uncertain future of which has hit headlines and led to questions in the U.K. Parliament. But no-one is going to lose any sleep over unemployed investment bankers – even if there are more of them than there are workers at the Sunderland plant. The silence from British politicians about the prospect of up to 8,000 British workers losing their jobs is deafening.

But the woes of terminated staff don’t concern Deutsche Bank’s Chief Executive, Christian Sewing. He has a bank to rescue, and investors to placate. His letter to staff had a distinctly ruthless tone: “I am very much aware that in rebuilding our bank, we are making deep cuts. I personally greatly regret the impact this will have on some of you. In the long-term interests of our bank, however, we have no choice other than to approach this transformation decisively.” “I weep for you, I really do…” while dishing out the redundancy notices. Sewing has all the personnel skills of a crocodile.

Just how little concern Sewing has for the feelings of the staff he is letting go became apparent at 9.30 am London time. While hundreds of staff in the London office were being sacked, executive management held a conference call – from the London office. During that call, the Chief Executive, Christian Sewing, announced that the bank still plans to maintain a large presence in London. In fact it is intending to move into shiny new offices on Moorgate. It is not hard to imagine how the sacked staff felt about this. It amounted to rubbing their noses in it.

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“..the peak price for gold in 1980 at $850, today would be $18,160 adjusted for inflation.”

Gold Is At A Historical Low (Von Greyerz)

[..] when we entered our physical gold investment in 2002, I had certainly been “sitting” for a very long time. Gold started the current bull market in 1971 at $35, made a temporary top in 1980 at $850 and then spent 20 years correcting. But the gold bull certainly hadn’t finished, central banks saw to that. They continued their irresponsible monetary policy, leading to a chronic credit expansion, debasement of currencies and thereby permanently underwriting the gold price. Looking at gold on an inflation adjusted basis, 2000 was the lowest point since 1971 when the price was $35 per ounce (based on Shadow Government Statistics inflation calculation).


The gold chart below, adjusted for real inflation, shows this amazing insurance can be bought today at an all-time historical low. Gold priced currently at $1,400 is cheaper than in 2000 at $280, cheaper than in 1970 when gold was $35 or in 1780 when gold was traded in London at £4 per ounce. What the chart also shows is that the peak price for gold in 1980 at $850, today would be $18,160 adjusted for inflation. There is no reason why gold wouldn’t reach that level in the next few years, especially as the gold paper market implodes.

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Which government is more inept?

Trump Hits Out At May After Leak Of Damning Cables (AFP)

Donald Trump launched an extraordinary attack Monday on outgoing British premier Theresa May, following the leak of diplomatic cables highly critical of his presidency. London has been scrambling to stem the damage caused by the weekend release of confidential telegrams in which its envoy to Washington, Kim Darroch, described the US leader as “inept” and his White House as “uniquely dysfunctional.” Visibly angered by May’s continuing support for her ambassador — which Downing Street reiterated on Monday — Trump assailed the prime minister over her handling of fraught Brexit negotiations, and welcomed her impending departure from office.


“What a mess she and her representatives have created,” Trump fumed in a series of tweets. “I told her how it should be done, but she decided to go another way.” “The good news for the wonderful United Kingdom is that they will soon have a new Prime Minister,” he wrote. As for London’s man in Washington, Trump declared he would have no further contact with him. “I do not know the Ambassador, but he is not liked or well thought of within the U.S,” the president said, doubling down on weekend comments claiming his administration were “not big fans” of Darroch. “We will no longer deal with him,” Trump vowed. But even after Trump’s remarks, a government spokesman said that “Sir Kim Darroch continues to have the prime minister’s full support.”

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“..he used to work for one of the law firms representing Epstein “long ago..”

Nothing else about Epstein for now, but I find the reports interesting about no-one knowing where his money comes from. Financiers leave traces of their work, he did not.

Barr Talks 2020 Citizenship Question, Recuses Self From Epstein Case (ZH)

Attorney General William Barr said on Monday that the Trump administration can legally add a citizenship question to the 2020 census, which had been excluded for the first time in US history by President Obama. Barr told the Associated Press that he has been in regular contact with President Trump over the matter. “I agree with him that the Supreme Court decision was wrong,” said Barr – referring to the USSC’s June Decision to block the citizenship question, adding that there is “an opportunity potentially to cure the lack of clarity that was the problem and we might as well take a shot at doing that.” According to the report, President Trump is likely to issue a presidential memorandum to the Commerce Department over the next several days ordering it to include the citizenship question.

Last week the Justice Department appeared to cave to legal pressure to keep the question off the census, only for President Trump to reverse course the next day – tweeting that the efforts to print the question would move forward. “The tweet this morning was the first I had heard of the president’s position on this issue, just like the plaintiffs and Your Honor. I do not have a deeper understanding of what that means at this juncture other than what the president has tweeted,” DOJ attorney Joshua Gardner told a federal judge during a Wednesday teleconference, adding “But obviously, as you can imagine, I am doing my absolute best to figure out what’s going on.” The DOJ on Sunday also announced that it would be replacing its entire legal team dealing with the citizenship issue – replacing them with other government attorneys.

On Monday, Barr told reporters that he had recused himself from the case involving billionaire pedophile Jeffrey Epstein, who was arrested over the weekend on charges of sex-trafficking minors, according to the Washington Times. Barr says that he used to work for one of the law firms representing Epstein “long ago,” though he did not name the firm.

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Didn’t Jim used to be a Democrat?

I Hear That Train a’Comin’ (Kunstler)

The Republican Party is a train of booby-trapped freight cars that can blow at any time. The engine is running on the fumes of the financialized economy. The engineer, Mr. Trump, only has his eye on the gauge that represents the stock market, which produces the gaseous emanations running his train. But the tank cars are leaking. The vapors are highly flammable. Any little spark can set it off, and surely will.

The Democratic Party is carrying seventeen gondola cars of the worst political scandal in US history: RussiaGate, the attempted coup d’état by national gaslighting, which will expose dozens of party officers and foot-soldiers in an actual criminal conspiracy, and subject them to ignominious prosecution in the heart of the election year. The damage could run as high as former President Obama when all is said and done, with Mrs. Clinton dragged under the wheels in the ensuing train wreck. It will be ugly and embarrassing to the max.

The Dem’s train also includes the circus cars of its identity politics hustlers, Reps AOC, Ilhan Omar, Rashida Tlaib, and Ayanna Pressley plus the sideshow of so-far-suppressed Joe Biden scandals concerning massive cash payoffs from Ukraine and China to his entrepreneurial son, Hunter — conveniently arranged during his Dad’s official trips to those places as Vice-president. There is reason to believe that a majority of voters are good and goddam sick of identity hustling and the tiresome racket of political correctness that spawned it. They see its bottomless appetite for grievance and complaint — against a reality in which life is difficult for everybody, not just self-proclaimed victims of oppression.

They smell the odor of bad faith in the party’s campaign for an open border with Mexico and its abject refusal to legislate immigration law reform — while grandstanding about the alleged mistreatment of people who cross the border illegally. Most of all, they are sick of the endless moral instruction and coercion, especially over “gender” issues and sexual boundary-stretching, the parades of freaks in dog masks, ball gags, and S & M get-ups, not to mention the utter insanity of the drag queen story hour, in which men perform as monstrous caricatures of women for impressionable six-year-olds. That is what it’s come to for the party of Franklin Roosevelt and Jack Kennedy.

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“..on one side, apparatchiks connected to vulture funds and failed banks and, on the other, ultra-nationalist former fascists.”

How Syriza Let The Greek Right Escape The Dustbin Of History (Varoufakis)

The Greek right is back: greedier, uglier and more focused than ever. The incoming New Democracy government is determined to reclaim full control of the state on behalf of the most parasitic segment of Greece’s oligarchy and, of course, of our country’s ruthless creditors. Kyriakos Mitsotakis, the new prime minister, is a scion of one of the dynasties responsible for Greece’s perpetual bankruptcy, corruption and subservience to the Atlanticist oligarchy-without-borders. Tellingly, he has surrounded himself with, on one side, apparatchiks connected to vulture funds and failed banks and, on the other, ultra-nationalist former fascists.

Together, Mr Mitsotakis’ motley reactionaries plan to unleash a fresh class war against a people who have already lost almost everything, against minorities, against our environment, against common decency. How did this happen? Four short years ago, Greek voters gave Syriza, the party of the radical left, a mandate to unseat the oligarchs and confine New Democracy to its rightful place — the dustbin of history. On 25 January 2015, caught up in the moment’s excitement, I quoted from Dylan Thomas to convey a message of hope to progressives across the globe: “Greek democracy,” I wrote, “today chose to stop going gently into the night. Greek democracy resolved to rage against the dying of the light.”

So, what went wrong? What was it that allowed the restoration of an authoritarian, incompetent regime that wrecked Greece before turning it into a harsh debtor’s prison from which emigration was, and remains, the only escape? When did my fellow Greeks stop raging against the long night of our debt bondage? The answer is: the night of Sunday 5 July 2015.

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But she won’t withdraw it.

Hong Kong Leader Carrie Lam: Extradition Bill ‘Is Dead’ (CNBC)

Hong Kong leader Carrie Lam said Tuesday that the controversial extradition bill that has led to mass protests in the city is “dead.” Addressing the weeks-long drama during a news conference, she reiterated that there is no plan to restart the legislation. She described the work to amend the bill as a “total failure.” Lam, meanwhile, said she took full responsibility for what has happened in the city, according to a translation of her address. Political tensions in Hong Kong have risen in recent weeks amid protests over an extradition bill that would have allowed some arrested in the city to be sent for trial in mainland China.


The bill had been suspended after a first round of demonstrations, but protesters continued taking to the street with calls for it to be withdrawn completely. “I have almost immediately put a stop to the (bill) amendment exercise, but there are still lingering doubts about the government’s sincerity, or worries whether the government will restart the process in the legislative council, so I reiterate here: There is no such plan, the bill is dead.” Notably, Lam did not say that she is officially withdrawing the bill, raising questions about to what extent the measure could be revived in the future.

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Halloween is less than 4 months away.

Almost Half Of Brits Are Stockpiling Food, Medicine And Clothes (BI)

Four out of ten Brits are stockpiling items including food, medicine and clothes in preparation for the growing prospect of the United Kingdom leaving the European Union without a Brexit deal later this year. 40% of people in the UK have started stockpiling goods in fear that there will be shortages in a no-deal Brexit scenario, according to research into consumer behaviour carried out by intelligence company, Blis. The most commonly stockpiled item is food. 56% of those Brits who are stockpiling are doing so with food items. 44% are building up supplies of household items, and well over a third (37%) are doing so with medicine. The public is even stockpiling clothing. Over a quarter of Brits (28%) have bought extra clothes and shoes to prepare for shortages and higher prices in aftermath of the UK leaving the EU without a deal on October 31.


Both candidates to replace Theresa May as prime minister, Boris Johnson and Jeremy Hunt, have promised to take the UK out of the EU this year, with or without a deal, with Johnson insisting that leaving on October 31 is “do or die.” The revelation that nearly half of British people are stockpiling goods like food and medicine in their own homes comes as British businesses ramp up preparations for a possible no-deal Brexit on October 31. Business Insider reported earlier this year that there was an even greater risk of supermarket shelves going empty due to shortages in October, than there was in the run-up to the original Brexit deadline in March. That’s because most of the warehouse space that companies used to stockpile goods in the run-up to March is not available in October, as it’s already booked up for the busy Christmas period when demand for goods rockets.

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How big will this blow up?

Russia Prepares S-400 Systems For Delivery To Turkey (AP)

Turkish President Recep Tayyip Erdogan has said Russia’s S-400 air defense missiles are currently being prepared to be flown to Turkey. Speaking to reporters before leaving for Bosnia on Monday, Erdogan wouldn’t say, however, when the Russian missile defense system would reach Turkey or where they will be deployed. The delivery of the systems could bring Turkey closer to US sanctions. US officials have warned that Turkey would face economic sanctions as well as being expelled from a program to produce the F-35 fighter jets. Turkey has refused to pull back from the deal. Erdogan said: “The preparations for the journey, the loading [of the S-400] is continuing … The S-400 will arrive by planes. May it be beneficial for our country, our region and especially for the world.”

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“And sure enough, now, three months later, where are the criminal referrals?”

Russia-Gate Blossoms Into Deep-State-Gate (McGovern)

That the Deep State retains formidable power can be seen in the repeated Lucy-holding-then-withdrawing-the-football-for-Charlie Brown treatment experienced by House Intelligence Committee Ranking Member, Devin Nunes (R-CA). On April 5, 2019, in the apparent belief he had a green light to go on the offensive, Nunes wrote that committee Republicans “will soon be submitting criminal referrals on numerous individuals involved … in the abuse of intelligence for political purposes. These people must be held to account to prevent similar abuses from occurring in the future.”

On April 7, Nunes was even more specific, telling Fox News that he was preparing to send eight criminal referrals to the Department of Justice “this week,” concerning alleged misconduct during the Trump-Russia investigation, including leaks of “highly classified material” and conspiracies to lie to Congress and the FISA court. It seemed to be no-holds-barred for Nunes, who had begun to talk publicly about prison time for those who might be brought to trial. Except for Fox, the corporate media ignored Nunes’s explosive comments. The media seemed smugly convinced that Nunes’s talk of “referrals” could be safely ignored — even though a new sheriff, Barr, had come to town. And sure enough, now, three months later, where are the criminal referrals?

There is ample evidence that President Trump is afraid to run afoul of the Deep State functionaries he inherited. And the Deep State almost always wins. But if Attorney General Barr leans hard on the president to unfetter Nunes, IG Horowitz, Durham and like-minded investigators, all hell may break lose, because the evidence against those who took serious liberties with the law is staring them all in the face.

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Clowns.

Russia’s RT and Sputnik Barred From UK Conference On Media Freedom (G.)

Russia’s RT and Sputnik news organisations have been banned by the Foreign Office from attending a global conference on media freedom in London because of their “active role in spreading disinformation”. Some 60 ministers and 1,000 journalists and members of civil society are expected to attend the meeting, co-hosted with Canada, on Wednesday and Thursday. “We have not accredited RT or Sputnik because of their active role in spreading disinformation,” a Foreign Office spokeswoman said. “While it’s not possible to accommodate all requests for accreditation, journalists from across the world’s media are attending the conference, including from Russia.”


The Russian embassy previously condemned the decision relating to RT as “direct politically motivated discrimination” and said it had complained to the Foreign Office. In a statement on Friday, it said RT had been told there was no space for its journalists at the conference. After the Foreign Office comments on Monday, RT said in a statement: “It takes a particular brand of hypocrisy to advocate for freedom of press while banning inconvenient voices and slandering alternative media.” In December, British media regulator Ofcom found that RT had broken impartiality rules with several programmes broadcast after the nerve agent attack in the English city of Salisbury. Moscow has denied claims by London that it approved the attack on a former Russian double agent in March last year.

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Interesting legal arguments. Juror tells judge what the law actually says. And Monsanto getting personal about jurors.

Juror Urges US Judge To Uphold $80 Million Roundup Verdict Against Bayer (R.)

A juror who was part of a panel that delivered an $80 million award against Bayer AG after finding that its glyphosate-based weed killer Roundup caused a man’s cancer has urged the presiding judge to uphold the decision. A letter from the juror written on July 4 was posted to the court docket on Monday as part of legal filings by Bayer. The company accused the juror of bias and called on the judge to disregard the letter in his decision making. In the letter, the unidentified juror told U.S. District Judge Vince Chhabria in San Francisco that the $80 million in awards “were no accident” and the result of “meticulous planning” by the jury.


The letter was a response to statements by Chhabria during a court hearing last week, when the judge said he would have to reduce the $75 million punitive damages portion of the award on constitutional grounds. Following a four-week trial, a federal jury on March 27 awarded $5 million in compensatory and $75 million in punitive damages to Edwin Hardeman, who was diagnosed with non-Hodgkin’s lymphoma in 2014. U.S. Supreme Court rulings limit the ratio of punitive to compensatory damages to 9 to 1, which in this case would put the maximum for punitive damages at $45 million. In the letter, the juror said higher damages ratios were allowed in extraordinary cases, echoing arguments Hardeman’s lawyers made during Tuesday’s hearing, when they urged Chhabria to affirm the total award.

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Jul 082019
 


Pablo Picasso Guernica [Study] II 1937

 

Deutsche Bank Retreat Depends On Uber Optimism (R.)
The Deutsche Bank As You Know It Is No More (ZH)
ECB Member Says Stimulus Package Could Come This Month If Needed (CNBC)
Trump Was ‘Only One’ To Help Prosecutor In 2009 Epstein Case (ZH)
Trump Says Migrant Detention Centers To Open To Media (AFP)
Trump Calls Ocasio-Cortez ‘Evita’ In New Book American Carnage (G.)
Nancy Pelosi Dismisses AOC, Omar, Tlaib, Pressley As Just ‘Four People’ (NW)
Protests Pile Pressure On Hong Kong’s Already-Stressed Youth (AFP)
Boris Johnson: I’ll Make UK ‘Match Fit’ For No-Deal Brexit (G.)
UK Ministers Challenge Court Ruling On Saudi Arabia Arms Sales (G.)
Swedish Prosecutors: ‘It’s Not on the Cards’ To Interview Assange (21CW)
Greek Conservatives Take Charge In Landslide Win (R.)

 

 

Writing about Deutsche without mentioning derivatives is nonsense.

Deutsche Bank Retreat Depends On Uber Optimism (R.)

Any cocksure child knows that owning up to mistakes is part of growing up. By that metric, Deutsche Bank is just beginning to mature. Boss Christian Sewing on Sunday effectively called time on the lender’s multi-decade attempt to create a global investment bank with a swingeing plan to shrink its trading unit and put 288 billion euros of assets into runoff. But the retreat depends on friendly markets and an absence of blunders. Germany’s biggest bank by assets is admitting what investors had long guessed: its target for a return on tangible equity of 4% in 2019 was a mirage and its profit-munching investment bank needs deeper restructuring.

To effect the latter, Sewing plans to shut down equities trading entirely and downsize Deutsche’s rates and fixed income businesses. The slimmer bank would have total adjusted expenses of 17 billion euros by 2022 – down from 23.5 billion euros last year – and a 70% cost-to-income ratio. That implies revenue of more than 24 billion euros, or just 1 billion euros less than in 2018. Such relative self-assurance was breezily backed up with reference to the “high quality and low risk nature” of the assets Deutsche is shedding. That begs the question of why those assets are surplus to requirements. Regulators are easing the transition to what should be a less risky institution: Deutsche is lowering its minimum common equity Tier 1 capital ratio to 12.5%, 50 basis points lower than before.

Even so, the plan depends on some rosy assumptions. Equities sales and trading brought in nearly 2 billion euros of revenue last year. Fixed income trading accounted for 5.3 billion euros. Deutsche believes resurgent corporate, advisory and asset management divisions will help partly make up for a projected 2.5 billion euros in lost income. But the fact that annual revenue in those businesses actually shrunk year-on-year in 2018 does not bode well.

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It can still blow up.

The Deutsche Bank As You Know It Is No More (ZH)

The bank which only a decade ago dominated equity and fixed income and sales trading and investment banking across the globe, and was Europe’s banking behemoth, is no more. On Sunday afternoon, in a widely telegraphed move, Deutsche Bank announced that it was exiting its equity sales and trading operation, resizing its once legendary Fixed Income and Rates operations and reducing risk-weighted assets currently allocated to these business by 40%, slashing as many as 20,000 jobs including many top officials, and creating a €74 billion “bad bank” as part of a reorganization which will cost up to €7.4 billion by the end of 2022 and which will result in another massive Q2 loss of €2.8 billion, as the bank hopes to slash costs by €17 billion in 2022, while ending dividends for 2019 and 2020 even as it hopes to achieve all this without new outside capital.


“Today we have announced the most fundamental transformation of Deutsche Bank in decades. We are tackling what is necessary to unleash our true potential: our business model, costs, capital and the management team. We are building on our strengths. This is a restart for Deutsche Bank – for the long-term benefit of our clients, employees, investors and society”, CEO Christian Sewing said in a statement. “In refocusing the bank around our clients, we are returning to our roots and to what once made us one of the leading banks in the world. We remain committed to our global network and will help companies to grow and provide private and institutional clients with the best solutions and advice for their respective needs – in Germany, Europe and around the globe. We are determined to generate long-term, sustainable returns for shareholders and restore the reputation of Deutsche Bank.”

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This is actually also about Deutsche.

ECB Member Says Stimulus Package Could Come This Month If Needed (CNBC)

France’s central bank governor hasn’t ruled out more stimulus for the euro zone coming as early as this summer, ahead of Christine Lagarde’s installment as the new president of the European Central Bank (ECB). Mario Draghi, the current president, laid out the groundwork for his successor in a recent speech where he cleared the path for much more stimulus in the euro zone, which could take the form of another large scale bond-buying program. Many market watchers saw this as Draghi tying his successor — now due to be Lagarde in November — to his path of easy monetary policy. But François Villeroy de Galhau, France’s central bank governor and a member of the Governing Council at the ECB, said a stimulus program could be launched before that, if needed.


“If we speak about monetary policy we have several Governing Councils to come, in the next month, including with Mario Draghi. And if and when needed, there must be no doubt about our determination to act and our capacity to act,” he told CNBC’s Annette Weisbach on Saturday at an economic conference in Aix-en-Provence in southern France. “We look at the markets, but we are not market dependent, we are data dependent. And if we look at the economic signals there is a continuing slowdown but there also significant wage increases … significant job creation on both sides of the Atlantic. So let us wait for our next Governing Council, and there are several to come, to assess the data and then to decide.”

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Mike Cernovich got this ball rolling (again).

Trump Was ‘Only One’ To Help Prosecutor In 2009 Epstein Case (ZH)

With the Saturday arrest of billionaire financier Jeffrey Epstein on charges of sex-trafficking minors – days after a judge ordered that nearly 2,000 documents be made public following a 2017 court motion originally brought by filmmaker and author Mike Cernovich, the internet is once again abuzz with speculation over who exactly might be implicated by the new evidence. Epstein pleaded guilty to one count of soliciting prostitution from a 14 year old girl in 2008 for which he served 13 months in jail in a sweetheart deal with the DOJ brokered by current Labor Secretary Alex Acosta. The sealed records appeal, meanwhile, stemmed from a separate 2015 defamation lawsuit in New York brought by Epstein victim Virginia Roberts Giuffre against British socialite Ghislaine Maxwell. Giuffre says Maxwell helped Epstein traffic herself and other underage girls to sex parties at the billionaire pedophile’s many residences.

The case was settled in 2017 and the records were sealed – leading to an appeal by Cernovich, who was later joined by the Miami Herald and several other parties including lawyer Alan Dershowitz – who seeks to clear his name in connection with Epstein’s activities. And while Democrats have suggested that the new evidence may implicate President Trump – who once called Epstein a “Terrific guy” who “likes beautiful women as much as I do, and many of them are on the younger side” (yet reportedly kicked the billionaire pedophile out of his Mar-a-Lago club for trying to recruit an underage girl) others are focusing on the Clintons.

A the NY Post detailed in 2016, Epstein and the Clintons are “close”. “Epstein has spent the bulk of his adult life cultivating relationships with the worlds most powerful men. Flight logs show that from 2001 to 2003, Bill Clinton flew on Epsteins private plane, dubbed The Lolita Express by the press, 26 times. After Epsteins arrest in July 2006, federal tax records show Epstein donated $25,000 to the Clinton Foundation that year.” And what about Trump? Following a 2018 financial settlement between Florida attorney Bradley Edwards – who represented one of Epstein’s accusers, only to be later sued by Epstein, Edwards said that Donald Trump was the ‘only person’ who provided assistance when Edwards served subpoenas and notices to high-profile individuals connected to Epstein.

Edwards: The only thing that I can say about President Trump is that he is the only person who, in 2009 when I served a lot of subpoenas on a lot of people, or at least gave notice to some pretty connected people, that I want to talk to them, is the only person who picked up the phone and said, let’s just talk. I’ll give you as much time as you want. I’ll tell you what you need to know, and was very helpful, in the information that he gave, and gave no indication whatsoever that he was involved in anything untoward whatsoever, but had good information. That checked out and that helped us and we didn’t have to take a deposition of him in 2009.

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But the story sells so many papers!

Trump Says Migrant Detention Centers To Open To Media (AFP)

US President Donald Trump on Sunday said migrant detention centers that have come under criticism for overcrowding and poor conditions will be opened to visits by journalists. “I’m going to start showing some of these detention centers to the press. I want the press to go in and see them,” Trump told reporters in Morristown, New Jersey. “We’re going to have some of the press go in because they’re crowded, and we’re the ones who were complaining about their crowding,” he added. His comments came after The New York Times and The El Paso Times on Saturday published an article describing a Border Patrol station in Clint, Texas as filled with hundreds of children wearing filthy clothing and packed into disease-ridden cells – a story Trump called a “hoax.”


“The stench of the children’s dirty clothing was so strong it spread to the agents’ own clothing — people in town would scrunch their noses when they left work. The children cried constantly,” the article said. “One girl seemed likely enough to try to kill herself that the agents made her sleep on a cot in front of them, so they could watch her as they were processing new arrivals.” The article echoed a Department of Homeland Security (DHS) watchdog report released last week warning of “dangerous overcrowding” in multiple detention facilities, which hold thousands of migrants seeking to remain in the United States, most of whom are fleeing violence and poverty in their Central American homes.

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See my article last night.

Trump Calls Ocasio-Cortez ‘Evita’ In New Book American Carnage (G.)

In American Carnage, Trump says he first saw Ocasio-Cortez during her primary against Crowley, while watching TV with political advisers. “I see a young woman,” he says, “ranting and raving like a lunatic on a street corner, and I said: ‘That’s interesting, go back.’” Alberta then says Trump “became enamored” and “starstruck” by Ocasio-Cortez. “I called her Eva Perón,” Trump says. “I said, ‘That’s Eva Perón. That’s Evita.” Alberta writes that Trump, whom he interviewed for the book in late 2018, “places a comically exotic emphasis on the nickname: Ah-vit-tah.” He also reports that Trump treated Ocasio-Cortez’s victory over Crowley as a chance to remind his advisers he is “good at talent. I spotted talent. She’s got a certain talent.”


Trump does row back on his praise, telling Alberta: “She’s got talent. Now, that’s the good news. The bad news: she doesn’t know anything. She’s got a good sense, an ‘it’ factor, which is pretty good, but she knows nothing. But with time, she has real potential.” Ocasio-Cortez has become one of the most recognised Democrats in the US. Her youth and her socialist policies, her candor and her canny use of social media have proved powerful tools in making a place for herself in the Democratic party and as a leading critic of Trump. Trump has criticized her in return but has also shown apparent fondness. For example, in April he said that although the Green New Deal would not prove an electoral winner, it was the work of “a young bartender” – a reference to Ocasio-Cortez’s job before politics – whom he called “a wonderful young woman”.

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Trump compliments AOC and Pelosi disses her. Winning.

Nancy Pelosi Dismisses AOC, Omar, Tlaib, Pressley As Just ‘Four People’ (NW)

Speaker of the House Nancy Pelosi dismissed progressive congresswomen Alexandria Ocasio Cortez (D-N.Y.), Rashida Tlaib (D-Mich.), Ilhan Omar (D-Minn.) and Ayanna Pressley (D-Mass.) as just “four people” this week after the Democratic party split over a $4.6 billion border bill passed by the Republican-led Congress. Pelosi told the New York Times, in an interview published Saturday, that despite their large amount of social media fans, the four freshman lawmakers still only get one vote each. “All these people have their public whatever and their Twitter world,” Pelosi said, referring to the four freshman lawmakers. “But they didn’t have any following. They’re four people and that’s how many votes they got.”

Pelosi’s comments come after the four, collectively referred by some as “the squad,” voted against the House’s version of the spending package, which passed on a 230-195 vote, to tackle issues at the southern U.S.-Mexico border. Later, the House moved to approved a Senate-passed border funding bill. Ocasio-Cortez spoke out against Pelosi last week for deciding that the House should approve the legislation without first trying to make changes. “Under no circumstances should the House vote for a McConnell-only bill w/ no negotiation with Democrats. Hell no,” the 29-year-old congresswoman tweeted about the Senate version of the bill, which will provide $4.6 billion in funding for operations at the southern border, but without aspects many House Democrats had hoped to include.

“That’s an abdication of power we should refuse to accept. They will keep hurting kids if we do.” In an earlier tweet, the self-described Democratic socialist pointed out that despite some Democrats offering “crucial amendments to protect children and families,” the bill failed to be negotiated with them. “None are even being considered,” she added.

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Mood.

Protests Pile Pressure On Hong Kong’s Already-Stressed Youth (AFP)

Hong Kong’s protests have ratcheted up already high stress levels among young people as they despair for their future under Beijing’s heel in a city where anger has long simmered over inequality and sky-high property prices, experts warn. The international financial hub has been rocked by a month of huge peaceful protests as well as a series of separate violent youth-led confrontations sparked by a proposed law that would have allowed extraditions to mainland China. Compared to the huge optimism-tinged pro-democracy “Umbrella Movement” rallies in 2014, the recent protests have been darker and more desperate, culminating in the storming of parliament last Monday by hundreds of young, masked demonstrators.

The movement has also taken on a distinctly funereal tone, publicly mourning at least four people who have taken their own lives in recent weeks after leaving political messages. Experts stress that most suicides have complex, multiple triggers and have warned that depicting the four as “martyrs” to the protestors’ cause risks encouraging copycat acts. An army of social workers, counsellors and other volunteers have mobilised across the city to address a spike in demand for mental health services. “These students are gambling their youth to defend this place, it’s very fragile,” said Roy Kwong, a pro-democracy lawmaker with a social work background who has been praised for trying to keep demonstrators from harm.

Winnie Ng, a counsellor and drama therapy practitioner who has volunteered in recent weeks, said many young Hong Kongers were under huge stresses before the latest protests. She pointed to huge inequality in the cramped city, the world’s most unaffordable property market, a pro-Beijing local government that has faced down demands for greater freedoms and the failure of the 2014 protests. “I personally think when everything in life is related to politics, it pushes life in Hong Kong into a very dejected state,” Ng told AFP. “Many people really can’t see hope”.

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Better get rid of him, Britain. He’s clueless.

Boris Johnson: I’ll Make UK ‘Match Fit’ For No-Deal Brexit (G.)

Boris Johnson has pledged to get the UK “match fit for no deal” to ensure it can leave the EU on 31 October “come what may”. The Conservative leadership frontrunner said there would be “no second chances” as he stressed that the Halloween deadline was real, “not fake”, in a comment aimed at his rival Jeremy Hunt. Johnson’s commitment to stick to the deadline comes after he was warned that more than 30 Tories could rebel to block a no-deal Brexit if he tried to force it through parliament. Writing on the BrexitCentral website, Johnson took aim at Hunt, who referred to 31 October as a “fake deadline”, before later admitting he should have described his rival’s commitment to leave on that date as a “fake promise”.

Johnson said: “We need a change of direction. That’s why we must treat 31 October as a real deadline for leaving the EU, come what may, not a fake one.” He restated his promise to protect the rights of EU citizens in the UK and to put the £39bn divorce settlement in a state of “creative ambiguity” to use as leverage to secure another deal. Under his plan, discussions about the thorny issue of the Irish border would be put into the talks on the future trading relationship. “If our friends feel they cannot agree, then we will be match fit for no deal,” he said. The UK would have the “fiscal firepower” to provide cash to support business and farmers affected by a no-deal Brexit.

Johnson also signalled that the UK would be prepared to tear up red tape and slash taxes. “We will be free to substantially diverge on tax and regulation,” he said. “I have had enough of being told that we cannot do it – that the sixth biggest economy in the world is not strong enough to run itself and go forward in the world.” Johnson, the frontman for the Vote Leave campaign, said he felt a “deep sense of personal responsibility for Brexit”, adding: “This is it. No second chances.” “We can choose more of the same, or we can choose change: delivering Brexit on 31 October, uniting the country and beating [Jeremy] Corbyn.”

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No morals whatsoever.

UK Ministers Challenge Court Ruling On Saudi Arabia Arms Sales (G.)

Ministers have asked the courts to set aside a landmark ruling that British arms sales to Saudi Arabia are unlawful, a legal manoeuvre that prompted Jeremy Corbyn to accuse the Conservatives of prioritising military exports over civilian lives. The government has applied for a stay of last month’s judgment pending an appeal, according to Campaign Against Arms Trade, which is fighting the case, at a time when conflict between the Saudis and Houthi rebels in Yemen has intensified. That appears to contradict assurances given to MPs by Liam Fox, the international trade secretary, that Saudi arms sales would be halted after the ruling pending a review. At the time, 57 export licences were under consideration.


Corbyn said: “This makes a mockery of their own commitment to halt all new sales while a review takes place into civilian casualties. Nothing could be clearer: the government’s priority is to sell arms, not to protect the rights and lives of Yemeni people.” Thousands of civilians have been killed since the civil war in Yemen began in March 2015. Indiscriminate bombing by a Saudi-led coalition is blamed for about two-thirds of the 11,700 civilian deaths in direct attacks. At the time of the ruling, Fox told MPs that while the government considered the implications, “we will not grant any new licences for export to Saudi Arabia and its coalition partners which might be used in the conflict in Yemen”.

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And still I see not a single Swede protesting this cruel absurdity. Who are you people? How do you sleep?

Swedish Prosecutors: ‘It’s Not on the Cards’ To Interview Assange (21CW)

Swedish prosecutors have this week announced that for the time being they will not be issuing a European Investigation Order (EIO) to interview Julian Assange, founder of Wikileaks. According to Sweden’s Deputy Director of Public Prosecutions, Eva-Marie Persson,”…it is currently not on the cards to issue a European investigation order…” For now, they will be analysing evidence before making a decision regarding procedure. So, how is it possible she is now not in a position to interview him – yet two months ago she requested his detention so that she could issue a European Arrest Warrant (EAW) against him and start an extradition process?

If Swedish prosecutors are to follow through with this latest investigation attempt, it will have been the third time that Assange will have been interviewed by Swedish authorities for what is essentially the same inquiry. If Persson is not in a position to proceed with an EIO, how can it have been practical or proportionate for her in May to have pursued his detention for the purpose of extraditing him to Sweden from the UK? According to the 2014 legislation by the European Court of Justice, authorities not in a position to prosecute do not require an EAW, but should carry out investigation through an investigation order. In fact, a Swedish court called the Swedish prosecutor’s request for Assange’s detention disproportionate and refused to grant it on June 3rd, suggesting that at least some judges and authorities are deferring to the European Court regarding EAW issuance and proportionality.

It simply does not make sense that one minute it’s full steam ahead with talk about arrest and extradition and the next, ‘Well, we’ll keep you posted.’ Is this how the Swedish prosecuting authority works? Or is that how it works for Julian Assange? There is only one logical conclusion from the latest development: the Swedish prosecutors were not in a position to prosecute Assange yet attempted to have him extradited anyway. This surely makes a mockery of the attempts by human rights organisations and the European Court to stop the ongoing abuse of the EAW.

How can they claim they needed to start procedures for extradition while at the same time have no immediate intention to interview? Is it not the case that this type of calculated misuse of the EAW back in 2010, followed by an obstructive application of the law is what led to Assange being held in arbitrary detention in the Ecuadorian embassy for seven years? Again, Swedish authorities failed to interview him for years while hanging the threat of extradition over him, a situation which was ruled on by the United Nations Working Group on Arbitrary Detention (UNWGAD) as de facto incarceration.

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Fascist Golden Dawn out, Varoufakis in. Good. The EU has a meeting on Greece planned for this afternoon, and they will tell the new PM to bend over and wait for it. Empty promises got him elected. But then, that was true for Tsipras as well. I personally think there’s far too much poverty in this country to insert a right winger and expect that to go down peacefully.

Twitter comments: “.. it’s not the annihilation of left/centre-left Syriza that many were predicting or hoping for. They are polling around 32%. In 2015, they won with 35%. If anything, they managed to retain their base and win back voters from the EU elections a month ago (24%).

Pollsters say many Golden Dawn voters opted for the far-right nationalist Hellenic Solution. They will have 10 lawmakers in the new parliament. Their leader, Kyriakos Velopoulos, is known in Greece for selling “genuine” letters written by Jesus.”

Greek Conservatives Take Charge In Landslide Win (R.)

Greece’s opposition conservatives returned to power with a landslide victory in snap elections on Sunday, and Prime Minister elect Kyriakos Mitsotakis said he had a clear mandate for change, pledging more investments and fewer taxes. The win appeared driven by fatigue with years of European Union-enforced belt-tightening, combined with high unemployment, after the country almost crashed out of the euro zone at the height of its financial travails in 2015. Mitsotakis said in a televised address that the election outcome gave him a strong and clear mandate to change Greece. “I am committed to fewer taxes, many investments, for good and new jobs, and growth which will bring better salaries and higher pensions in an efficient state,” Mitsotakis said.


Tsipras said he respected the will of the Greek people. “Today, with our head held high we accept the people’s verdict. To bring Greece to where it is today we had to take difficult decisions (with) a heavy political cost,” he told journalists. Tsipras took over from the conservatives in 2015 as Greece was at the peak of a financial crisis which had ravaged the country since 2010. Initially vowing to resist deeper austerity, he was forced into signing up to another bailout months after his election, a decision which went down badly with voters. The handover will take place on Monday, after Mitsotakis’s swearing in as new Prime Minister.


– Blue=New Democracy 39.85%
– Pink=SYRIZA 31.53%

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Jul 072019
 


Pablo Picasso Guernica [Study] 1937

 

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

 

 

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

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

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

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

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

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

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

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Everyone wants Bolton to stay in Outer Mongolia.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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


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

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Power for sale.

Bought Politicians (Craig Murray)

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

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

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

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Xi is itching to get involved.

China Station Next Target For Hong Kong Protesters (AFP)

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


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

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

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Excellent by Anya Parampil.

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

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

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

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

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

The silence from Brussels is getting louder.

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

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

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

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

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

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

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

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

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

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

Greeks Vote In Snap General Election (BBC)

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

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

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

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